More Tips

The goal of a household budget is to make you stick with a spending plan that creates leftover money for saving and investing. You are not going to do this if you use credit cards too much. Credit cards have their place, but carrying a credit card debt can really eat into your income. So use your personal budget to create that leftover money and apply it first to your highest rate credit card debt. Keep doing this until it is paid off and then move to pay off the next highest rate card, etc. I would shy away from debt consolidation loans unless it results in lower payments, lower interest rates and fewer monthly payments left to make. All three should be present or the debt consolidation loan won't work. Remember, you cannot borrow your way out of debt.

Become a dedicated coupon addict. There are thousands of money saving coupons around and you should be using them. I have included a coupon page that lists a bunch of online coupon offers.

By the way, included on this site is an extensive lesson on how to balance your bank account with a real good example that should take the worry and mystery out of this sometimes depressing monthly chore.

Don't fall for those "credit repair" systems you read about all the time. The Federal Trade Commission says, "Only time, a deliberate effort, and a personal debt repayment plan will improve your credit". Nothing can "repair" your credit except time and prompt payments. Please remember that anything you legitimately do to lower your fixed payments will create more leftover money. Save it or apply it to pay off a high rate debt. Don't spend it. If it is not in your personal budget or your household budget, you don't need it!

If your employer has a 401(k) plan, investigate it. This is a great way to save for retirement and most employers will match a certain percent of what you put into the plan. And nearly everyone can take advantage of IRA accounts. Both of these types of investments are usually tax deferred and are well worth looking into. Ask your bank or credit union about IRA's.

Never buy anything without shopping around first. I don't care if it is a car, insurance, a loan or wallpaper for the living room. My rule of thumb is get at least three quotes on anything before you buy it. Also I like to ask friends and relatives who they recommend for the best deal. But be sure to get the three quotes anyway. I have included a section on insurance basics that can help you understand the area of insurance with some explanations and tips.

If you are renting, consider owning your home. I have included a great article about how easy it is to own your own home. Follow these simple steps and you will be on your way.

Never buy anything unsolicited over the phone. And turn off those shopping channels on the TV. Just use your TV remote to block or eliminate the channels so you don't even surf by them.

I also recommend that everyone go to the US Consumer Products Safety Commission website at CPSC and sign up for their email product recall alert newsletter. This is especially important if you have children in your home. There is also a wealth of consumer information at the Federal Citizens Information Center, FCIC.

So….What Do I Do Now?

Ok, that is a valid question. First think of what you were doing on this date one year ago. Had you started a sound budgeting and saving plan then, where would you be now? Make a pledge to start those plans right now instead of waiting another year. Next, find out where you stand. What are you spending your money on each day? What can you save on and why do you want to save?