Couponing 101

Thanks to TLC’s new show, “Extreme Couponing” an old money saving idea has come back into style. While most do not have the time or patience that “Extreme” couponing entails, here are some easy ways to get started on the Coupon Craze. Your budget will thank you!

Traditional Cut and Clip:

Some of the best coupons are found the traditional way, just like your mother taught you. Purchase or subscribe to the Sunday edition of the paper (purchase multiple copies for multiple coupons) and start clipping and filing. Manufacturer’s coupons are advantageous in that they can be used at multiple stores, and used when stores offer additional promotions such as Double Coupon Days.

Online Coupons:

User friendly websites such as www.couponmom.com and www.redplum.com printable grocery coupons at no cost. Such websites also provide additional grocery saving tips and advice. Try Kroger’s website to upload coupons straight onto your Kroger Plus card. The discount will automatically apply during checkout.

Be Loyal:

Stores reward loyalty. So if you do most of your shopping at Kroger, Walgreens, or CVS, consider signing up for their rewards program. Ask a sales associated what perks you may receive for items besides groceries such as prescriptions or fuel.

Subscribe to Email lists and mailings:

While you may receive some junk, you may also receive valuable sale information emailed only to the store’s subscribed users. Consider setting up a separate email address to avoid receiving “junk” in your personal inbox.

Consider keeping track of your coupon savings and allocating it toward an emergency fund, debt payments, or other financial goal.

Online Budgeting Tools

Here are some great online budgeting tools to help you get started on budgeting:

Microsoft Office offers custom budget templates: http://office.microsoft.com/en-us/templates

A great budgeting tool I use and love is Mint. It sends alerts based on personal information and settings. Great Mobile App as well:

www.mint.com

For a small business, I highly recommend the use of QuickBooks. This is what I use for my small business to keep track and send out invoices.

http://quickbooks.intuit.com/

You might also find that a simple Excel spreadsheet, Word document, or old fashion pen and paper works for you. Whatever format you choose is less important than making sure you consistently update, review, and follow your family or business budget.

How to Budget

A lot of people ask me how they can get started reaching their financial goals. And my answer always starts with the “B” word: Budget.

Having a budget means you understand where your money is coming from and where your money is going. And once you understand where it’s going, you then have a basis for future financial decisions. In this sense, a budget is the foundation to any financial plan.

Do the Math:

Start by listing the basic bills you pay each month such as rent/mortgage, utilities, car, student loan and credit card payments, gasoline, insurance, cable, phone and Internet. Don’t forget to include money donated to charity, food, clothing, savings, travel expenses, entertainment and miscellaneous expenses.

A great budgeting tool to use is your on line bank or credit card statements. Often these will offer an itemized list of your monthly expenses.

I have a budget… Now What?

Making a budget is easy. The hard part is implementing action steps in result of your budget. If you’re not willing to execute needed changes in result of preparing a budget, then it’s not worth any more than the paper you printed it on.

Subtract your monthly income by your monthly expenses to see what is left over. This “leftover” money can serve as a piggy bank for your dreams.

Dedicate your piggy bank money to your goals, whatever they might be: paying down debt, saving for retirement, buying a home or vacation home, or taking a family trip. Continue to find ways to make your budget work for you…not the other way around.

Through budgeting, you may discover that you need to increase income–not just decrease expenses. Consider a part-time job, over time work, or refinancing your house. Do not consider borrowing from your 401(k), taking on additional debt, or ignoring your cash flow issue.

As with anything in life, perfecting your budget will take practice. But there is no better starting point to financial success than a sound and basic budget.

Check out these online budgeting tools to help you get started.

How to Save Money on Gasoline

With oil prices high, consumers are feeling the impact rising gas prices have on their wallets. Since drastic changes such as buying a more fuel efficient car, driving less often, or carpooling aren’t realistic options for many, here are four easy gas saving tips for all drivers–regardless of the vehicle.

1. Drive like you’d want your teenage daughter to drive.

Or better yet, how you’d want her sixteen year old boyfriend to drive with her in the car. That means driving the speed limit and anticipating traffic patterns to avoid sudden stops and aggressive take offs. According to the Federal Trade Commission, safe driving can improve gas mileage by nearly 5%. The FTC reports on their website that “gas mileage decreases rapidly at speeds above 60 mph.” It pays to take your time.

2. Plan Ahead:

Planning ahead can save time and money. Cars are most fuel efficient when the engine is warm, so combine multiple trips into one afternoon and try to avoid rush hour traffic. When possible, find “one stop shops” rather than driving to multiple venues. Unpack any unnecessary items in the trunk which might add more weight to the car. Before leaving home, look on line for the best prices on gas and plan your route accordingly.

3. Maintenance:

According to AAA, ongoing maintenance of your vehicle can equate to more fuel efficient driving. Important up keep includes making sure your spark plugs are in good condition, checking the air filters twice a year, and inflating tires to the appropriate level specified in your owner’s manual.

4. At the pump:

“When possible, try to buy gas during the coolest part of the day,” suggests Dr. Ron Weiers, author of 365 Ways to Save Gas, “The pumps deliver and charge you according to volume, and gas expands when the ambient temperature is higher,” Weirs explains. “If you really want to be picky, and you’re forced to buy gas during a warm time of the day, try to favor the pump that’s been in the shade the longest.”

Save Money at the Doctor: Questions to Ask

Part of saving money on healthcare is having a clear understanding of your health care options. The best way to do this is to utilize the time available with your doctor.

According to Dr. Terrie Wurzbacher, author of Your Doctor Said What? Exposing the Communication Gap there are three main questions seniors should always ask of their health care provider. In addition, be prepared for your appointment by preparing a list of questions ahead of time.

1. Always ask if any medication your doctor prescribes will interact/interfere with any that you are taking.

“It’s vital that you always tell the medical staff everything you’re taking – no matter where you got it,” Terrie explains. “Many people think that if they obtained something over the counter or at a health foods store that it’s neither a drug nor potentially dangerous. This is simply not true.”

2. Always ask what the side effects are of a medication being prescribed.

”You want to know what to expect from something you’re putting in your body,” Terrie says. If you don’t know what to expect, it is less likely you will notice a negative reaction.

3. Always ask when you should expect a positive response and what you should do if that doesn’t occur.

“No matter whether it’s medication, physical therapy, or advice to just rest, you want to know at what point you should start feeling better even if you’re not completely cured.”

Seniors are saving money on health care by getting innovative and creative with their options. One couple I spoke with said they save on health care by asking for prescription samples. Another suggested the local University’s Medical School, which offers services at a discount performed by residents or students.

Other ideas include preventive treatment and regular check ups, using doctor visits instead of emergency room visits, and negotiating with your health care providers and insurance companies.

Six Steps to Getting out of Debt

Get organized: Begin by gathering all your credit card statements and bank statements. Make a budget. List your credit cards with balances, from the highest interest rate card to the lowest. Make goals for how much you want to put toward each card, each month.

Negotiate for a lower interest rate: One by one, call the customer service center for each credit card and ask to get a lower interest rate. Often, companies will work with you and grant you a lower interest rate in hopes to retain your business.

Don’t accept new credit card offers: One key to getting out of debt is to stop acquiring new debt! One to two credit cards is usually the maximum amount any individual or family needs. Eliminating one debt, and adding another, only gets you falling back into the same pattern. While department stores might offer you incentives-such as 10% your current purchase, or 0% financing for 12 months-avoid adding to your debt at all cost.

Make a budget: Making a budget helps you identify how much money you are able to spend each month to pay off your debt. It also helps identify areas in which you could cut spending or increase savings. Once out of debt, a budget is a great tool to help you meet your goals without falling back on credit cards.

Pay cards with highest interest rate first: As a general rule, it makes sense to pay the cards with the highest overall interest rate first. Since debt grows exponentially, the idea is to hit the biggest ones first to decrease the overall amount of interest you will pay back.

Proper insurance: A large portion of debt is caused by large medical bills, or other difficult situations caused by an emergency. It pays to make sure you are properly insured. Check your health insurance, car insurance, life and homeowner’s insurance to make sure you are adequately covered for emergencies.

Get out of Debt Now!

Trying to get out of debt can be overwhelming. But it’s absolutely possible, and there’s no better time than now to start taking action. Here are my 5 best tips to reducing credit card debt:

1. Get organized: The first step of getting out of debt is learning about the situation you are in. Begin by gathering all your credit card statements and bank statements. List your credit cards, with balances, from the highest interest rate card to the lowest. Make goals for how much you want to put toward each card, each month.

2. Make a budget: Making a budget helps you identify how much money you are able to spend each month to pay off your debt. It also helps identify areas in which you could cut spending or increase savings. Once out of debt, a budget is a great tool to help you meet your goals without falling back on credit cards.
3. Negotiate for a lower interest rate: One by one, call the customer service center of each credit card company and ask to get a lower interest rate on your card. Often, companies will work with you and grant you a lower interest rate in hopes to retain your business.
4. Pay cards with highest interest rate first: As a general rule, it makes sense to pay the cards with the highest overall interest rate first. Since debt grows exponentially, the idea is to hit the biggest ones first to decrease the overall amount of interest you will pay back.
5. Pay more than the minimum required amount and pay on time: Always pay more than the minimum payment. If not, the interest accumulating on the balance of the loan will make it difficult for you to keep up with the repayments necessary. Eliminate any late fees by paying on time and use that money toward the balance of the loan instead.
While working on your debt, consider various credit counseling programs which provide debt management education. Sometimes these are offered free of charge locally through government or church programs. If you use a debt consolidation firm, it’s likely they will offer free credit counseling as well.

Should I Refinance?

With home rates at historical lows I am often asked, “Should I refinance right now?”
The answer depends on a number of factors—more than just the rate of the new loan. So I’ve asked mortgage expert John Cole, Senior Loan Executive with First Financial Mortgage in Louisville, Kentucky to guide us through the variables associated with a re-fi.
With rates changing daily, experts don’t recommend trying to time the market to lock in the absolute lowest rate. Instead, your decision should be based around a number of factors.

One is recapture—that is, how long will it take to regain in savings the amount you spent on closing costs?

For example, if closing costs are $2,500 and you save an additional $50 per month on your mortgage, it will take you 50 months to reach your “break even point.”

However, if you plan to stay in your home for many years, a reduction of just a few points in your interest rate could end up saving you thousands of dollars over the life of the loan.

Ask your loan officer to calculate this for you. They should be offer you a comparison of your current verse proposed loan schedules. Ask, “How much will I save per month by refinancing? How much will I save over the life of the loan?”

Other questions Cole recommends asking include, “Can I afford to make extra payments toward my mortgage?” If so, it may be beneficial to make extra principal payments to reduce the balance of the loan.

Also, “Will refinancing reduce risk by paying off risky products (such as adjustable mortgages, or equity lines which are adjusting), or eliminate PMI (private mortgage insurance)? Does refinancing accomplish my goals of monthly savings, lifetime interest savings, or home improvement?”

“All of these things should be discussed with your lender,” Cole says. “Anyone can quote you a rate. They need to have these personal discussions to see if a re-fi is right for you.”

Tips to save on Health Care Costs

Money is tight. And with rising health care costs, it’s difficult to find ways to cut back. Especially on necessities. But here are seven tips for saving money on health care:

1. Go Generic: Ask your doctor if your prescriptions are absolutely necessary. Are there any other alternatives to try before prescriptions? If it is necessary, ask if there is a generic version of the drug available and if there are any reasons why the generic version would be inappropriate. Often, drugs off patent can cost up to 90% less.

2. Try Coupons: If you can’t buy generic, search for drug coupons. The AARP suggests searching for online coupons for prescriptions, especially for non-generic drugs. Two websites for coupons include www.optimizerx.com and www.internetdrugcoupons.com.

3. Pick your Pharmacies: Not all pharmacies are created equal. Currently, places like Target and Kroger are offering $4 prescriptions on over 300 generic drugs and includes some of the most popular prescriptions. A list of the participating pharmacies and eligible generic drugs are available at www.kroger.com/generic or by calling 1-877-4RX-LIST (1-877-479-5478).

4. Prevention Practices: Experts suggest simple steps such as eating a balanced diet and exercise can mean major savings in health care costs. Consider maintaining a healthy weight and visiting the doctor regularly for checkups.

5. Negotiate:According to Charles Inlander in his article “Negotiating with Health care Providers” he explains how easy it can be to negotiate costs. “Generally, doctors and other health care providers are willing to lower their standard fees for patients with limited incomes or special economic circumstance,” he says. “This holds true especially for people without health insurance, or for services not covered by health insurance. But it is up to you to start the discussion.”

6. Try it out: If the doctor recommends a new prescription, ask if there are samples available. Not only will you save money, but it can be an appropriate way to try out the drug to discover any uncomfortable side effects.

7. Check your bills: Always review your bills and insurance coverage before and after a visit to the doctor. Look for anything incorrect or suspicious. If you find a mistake, call your healthcare provider immediately for corrections.

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Category Archives: Budgeting