Tips For Starting A Financial Diet
PHILADELPHIA - It's a new year and a new you! It's a perfect time to start a financial diet. Whether you are looking to cut back because of layoffs or a reduction in pay, here are some tips from the Consumer Credit Counseling Service of Delaware Valley.
Short-Term Goals
Bring your lunch to work this week. Instead of going out 5 days this week for lunch and spending on average $10 for a salad or sandwich, treat yourself one day and brown bag it on four days. Save $40 this week, do it all month and that's $160!
Shop for food with a list and stick to it. People who do food shopping with a list, and buy little else, spend much less money than those who decide what to buy when they get to the food market. The annual savings could easily be hundreds of dollars.
Save your loose change. Putting aside 50 cents a day over the course of a year will allow you to save nearly 40% of a $500 emergency fund.
Long-Term Goals
Keep track of your spending. At least once a month, use credit card, checking, and other records to review what you've purchased. Then, ask yourself if it makes sense to reallocate some of this spending to an emergency savings account.
Reduce credit card debt. Debt reduction will probably save you $150-200 a year, and much more if you're paying penalty rates of 20-30%.
Make your monthly credit card payment on time. The $30-35 you save by not being charged a late fee each month on one card would save you most of the money you need for $500 in emergency savings.
Shop around for auto and homeowners' insurance: Before renewing your existing policies each year, check out the rates of competing companies (see the website of your state insurance department). Their annual premiums may well be several hundred dollars lower.
For more on credit, you can contact the Consumer Credit Counseling Service of Delaware Valley at: http://www.cccsdv.org/education/philadelphia-saves.
