Winning Tips for Saving Money & Stretching Your Paycheck That Can Work for You
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Most people are doing all they can to bring in as much money as possible, and with these 5ive tips to help you get more "bang" for your buck you can find ways to make your paycheck go just a little bit further and pay off debt.
It's true that money can't buy happiness but on the other hand, too little money sure can buy lots of stress. Financial troubles are the number one marriage buster in America. Since the financial crisis that began in 2008, there are more home foreclosures than ever since the Depression.
Most people are doing all they can to bring in as much money as possible. Some people are working hard to keep their job, working as many hours as possible, although many workers' hours have been cut and working part time at a second job. Most Americans feel they are bringing in as money as they possibly can right now. On the other hand, most people also feel that there is nowhere left to cut expenses. From coupons, to meatless meals, to packed lunches, many people feel that there is simply nothing left to cut.
If you're at this point, or trying to avoid getting there, here are some suggestions for increasing your cash flow each month.
Reduce Federal and State Withholding:
Most people use the maximum withholding, almost as a savings plan, in hopes of getting a tax refund each year. While a refund is nice, if what you really need is more money each month, then reduce your withholding.
With the maximum withholding you are offering the federal government an interest-free loan. Instead of letting them "hold" your money for you all year, you could use the difference to pay off high interest debt each month. If you don't have high interest debt, then invest it and get a return on your money. Pretend it's a refund.
-Increasing federal exemptions can make a big difference.
-The impact with a state withholding will be much more modest.
Refinance Your Mortgage at a Lower Rate:
You've heard it before and it seems like a hassle, yes, but now are the best time to refinance your mortgage for a lower rate. Interest rates are really low and possibly several points lower than when you original took out your mortgage loan.
-You'll need up to 20% equity in the home to refinance.
-There are usually closing cost.
Still, refinancing can free up money for cash flow each month, saving you money immediately and in the long term too.
Consolidate Debt using a Home Equity Loan
Lots of people of (not always well-meaning) folks offer to consolidate your debt all the time. You've no doubt seen them on television. We're talking about a home equity debt consolidation. You can get cash up front to pay off high interest debt with monthly loan payments spread out over years and at a much better rate.
-You'll need significant equity in your home.
-The interest is tax-deductible just like your original mortgage.
Transfer Credit Card Debt to a New Card with a Low Introductory Interest Rate:
Credit cards can literally eat you out of house and home and most financial experts agree that credit cards should be paid off as soon as possible. Temporary relief can often be found by transferring to another credit card with lower rates.
It is imperative to realize that often these lower interests are only temporary, with six months being a common term.
-The interest rate with a "sweetener" may be as low as zero percent.
-Monthly payments are often lower too.
-Be careful to make changes BEFORE the end of the low interest timetable and read about all only exclusions and qualifications.
-Watch out for fees that can offset savings.
Many people have also obtained a lower interest rate by calling customer service and asking. Speak to a supervisor if you must and let them know that without a better interest that you will have to transfer this balance.
Even if it is for six months, transferring credit card debt to a lower interest rate card can free up some cash flow for those months.
If you're ready to get started freeing up some reserve cash flow each month, you'll want to spend some time researching financial planning. Here are some online resources to help you get started today.
-Bankrate.com
-Moneycentral.msn.com
-Interest.com:
-Creditcards.com
It may sound like "work" but using even one of these tips can save you money and increase your cash flow each month. Using more or all of these tips can make a huge difference in your financial outlook each month.
Posted by Lisa Carey on November 20, 2009 07:59 AM | Permalink
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