Reducing Expenses

Saving for Emergencies

emergency-savings

Emergency savings are for when your car breaks down. It’s for an unexpected medical expenses. It’s for covering your bills if you’re between jobs. It’s for unexpected home repairs. An emergency is something that must be taken care of right now or you won’t be able to get to work, have a place to live, or when you might have to choose between medical bills and utilities.

What it’s not: a savings account for things you think you need. No matter how much you think need to book a cruise, a nice vacation is a want. You will survive if you vacation at home with trips to the local beach. You will also survive without a smart phone, or cable TV, or a Kindle. You get the idea.

Once you have an emergency savings equal to one year of your expenses (yes, I said one year), then you can start saving for the fun things you want in life. Today, plan on how you are going to start saving for emergencies. Set up a regular savings amount from your pay that automatically goes to this account.

Living Within Your Means

live-within-means-chalkboard

Whatever your goals are, you have to learn to live within your means. That means that you cannot spend more than you earn. For every dollar you bring in, you need to spend less than a dollar so that the remaining amount can be saved.

Go back to the numbers you did earlier this month. Are you including money for savings? If not, you need to figure a way to do that. In a perfect world, you need to have savings for emergencies, savings for retirement and savings for wants. Today, think about how you will get that money to save.

What do you want financially from your life?

financial-goals-list

It’s Day 20 of Financial Literacy Month – time to make a list of things you really want. Maybe it’s money to pay for your children’s college? Maybe it’s more money to save for retirement? Maybe it’s enough money to be able to live monthly and not worry about how to pay your bills? Whatever you want, today is the day to make a list and meditate on your goals.

Greeting Cards

greeting-card

Do you spend lots of money on greeting cards and postage? Do you forget to send cards? Try an online greeting card service. I use one that’s less than $10 per year (with no postage). I get reminders for special dates, and can schedule ahead of time, or send right away. No special day slips by me. …Of course, nothing beats markers, paper, and hand-delivery. 🙂

Games Night

game-night

Board games aren’t just for kids. Lately, teens, college students and adults have rediscovered game night parties thanks to new games like Apples to Apples, Ticket to Ride, Last Night on Earth (a zombie game), Pandemic (a plague game), Settlers of Catan, and the crazy fun Quelf. Personally, I love a fast-paced game of Mexican Train (dominoes).

Movie Night At Home

movie-night

How about a movie marathon at home? Go to your local library, borrow several movies, and watch them on your own TV with homemade popped corn. If the library doesn’t have what you want, rent them from your local grocery store movie kiosk for minimal cost. Netflix members can use a Roku or compatible game console.

Dinner with a Twist

byob2

If you want something more than pot luck but don’t want to pay a fortune for dinner out, try a BYOB restaurant. Check around, some restaurants will let you bring your own bottle of wine. Ask first, because there could be a “corkage fee” for bringing your own bottle. When you buy wine from a restaurant, your favorite bottle can be double the price of what you would pay retail. Check with your state, because some states will let you bring the partial bottle home, and others won’t. This is one way wine lovers can enjoy dinner out and still save some money.

One if Full Price, Two If Black Friday

The holidays are coming! The holidays are coming! Guard your budgets and hold onto your wallets. You might be thinking I’m crazy, but the retailers have positioned their holiday displays to disarm you of your cash.

Now is the time to remember how you felt last year when you overspent.

Can you make this year different? Can you stick to your list and not overspend? You can if you make a detailed plan. Write down exactly what you will be buying and the dollar amount you plan to spend.

Here are some suggestions that should help you with your holiday budget list.

1. Gifts

How much for immediate family?
How much for extended family?
How much for friends and co-workers?
How much for people whose services you use?

2. Entertaining

How much will it cost when you host a gathering?
How much will you spend on hostess gifts when you attend a party?

3. Travel

How much will it cost for local travel (gas, tolls, parking, etc)?
How much will it cost for long distance travel?
How much will it cost for vacation?

4. Traditions – this can be anything from an afternoon tea to a night on the town.

If you write it all down, you might realize you’re planning on spending $300-$500 on gifts for people who aren’t on your immediate family list. And hosting dinners can be expensive just because you want to put on a good appearance. Ever notice a big stain on the tablecloth and found yourself running to the store at the last minute to buy one full price?

Holiday fun can wreak havoc on your budget, but it doesn’t have to. Now is the time to get a jump start on planning, and to put away money for the details that are important to you. Think of it as your own layaway plan. Take money out of each check, in addition to your regular savings deduction, to create your own holiday fund.

Doing this now will make January 2013 less stressful.

Make Your Dream Vacation Affordable

Last issue we talked about vacationing locally and all the things you can do close to home. But, what if you really want to get away? How will you save money, then?

We travel often and are able to save in a variety of ways. Here are some of them:

Travel during shoulder season (that’s somewhere between peak and off-season). We’re going to Aruba in the Fall. The Caribbean is off season at that time because of the hurricane season, but Aruba is usually too far south to be affected by hurricanes.

Comparison shop to get the best deals – there are so many websites that will do this for you. I like Kayak for airfares.

Reward Programs – if you find yourself using a particular airline or hotel, join their program. I know you’ve heard that you may not be able to use your miles for flights. I can tell you that I haven’t found that to be an issue. You do need to plan ahead to get the reward you want. We have used airline miles for many trips, including a flight to Alaska in August.

For rental cars, we make our reservation early, but don’t prepay. Then we check back regularly to see if the price has dropped. You will be amazed at how much the price can drop closer to your trip!

Discounts and coupons – don’t forget about those. We recently went to an aquarium because our water company sent a buy-one-get-one-free coupon with your bill. Coupons and offers can come from a variety of sources. If you have a membership with a service like AAA or a store like Costco, check their mailings or website. Once you reach your travel destination, the visitors guides typically have clip-out coupons (make sure you pick them up when you arrive).

Stay at a place with a kitchen (or at least a fridge) to help your budget. You can shop when you get there for meals and snacks.

Bring your own food on the airplane. Take carry-on food versus buying in the airport or on the plane. You can’t bring drinks, but you can buy a beverage in the waiting area, or get a free drink after boarding. Your own food will undoubtedly be healthier and more satisfying than anything they have to offer.

We’ve had trips in the past where we’ve traveled for next to nothing. Our airfare was paid for with miles and our lodging with hotel points. We only had to pay for food, local transportation, and entertainment.

What do you do to save money on vacation? Join the discussion.

Save Money – Stay Local this Summer

Share Your Vacation Story!

Planning a great money-saving vacation? Share your tips! You can post your story in the comments below or on Facebook, LinkedIn or Twitter. Or, you can email me at book @ jillrussofoster.com. I can’t wait to be inspired by your summer plans!

Here are my suggestions!

Now that it’s Spring, you’re probably thinking about summer travel plans. I know I am. But, with the price of gas going up, you might be thinking, “Can I afford to do something this summer?” You can if you stay local. Here are some free or low-cost suggestions:

Local museums – Museums can be pricey, especially if you’re bringing the whole family. But most museums have free days or discount days. Check the website or call the museum to see when their next discount day is, then plan a vacation day around that.

City parks for movies, concerts, or theater – Many Parks and Recreation Departments host events. These might be free, or low cost, and all you need to do is pack a picnic. In our area, we have movies in the park, many music concerts and Shakespeare on the Sound. Check out your town’s website to see what they offer.

Libraries – Check your library’s event listings (we use our library all year long). Many libraries host interesting talks, movies, and even musical events.

Holiday Celebrations including parades and fireworks – What is your town doing? Check out nearby towns, too.

State Parks – You’ll get a change of scenery and a day outside.

Tourist activities – Be a tourist or visitor in your town (or nearby) and check out the sites. Try to see your town with new eyes and check out the funny little restaurants, art stores, outdoor art, and important town landmarks.

Get together with family and friends – Plan a get together to reconnect. We have one planned for July already.

Go to the Beach – This is one of my favorite places to relax.

Street Fairs and Festivals – Many areas have multiple festivals throughout the summer. There are arts and crafts fairs, ethnic celebration festivals, and antique car shows. You can buy pottery one weekend, and dance the polka the next. Use the internet to see what’s happening in your area.

What do you have planned? Join the discussion.