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Archive for December, 2010

Cutting your Expenses: The Guerilla Way

December 29th, 2010 at 07:27 am

Want to get rid of those tons of bills you are receiving monthly?

A lot of people spend more than what they earn and end up in debt. Why become one of them if you can do something to reduce your expenses. I know itís a big challenge for people who love to go shopping and outspend their income monthly, but have you ever thought how much you could an save if you trimmed down some unnecessary expenses?
Here, let me give you some ways that can help you cut down some of your expenses while still having fun:

Internet Provider.
Try to look for a much cheaper provider, if you are using the internet just for research and documentation you donít need a super-fast connection, get an internet speed that is appropriate for your needs. It may not be a lot, but it can really help you reduce your bills.

Energy & Water.
This kind of bills are carved in stone, the only way we can reduce this is by using less, itís something hard at first but if you just pay attention to the basics you can save a lot.
Let me give you some pointers here, take a look at those lights left on, appliances that are not plugged off, say a television that is turned off but not plugged off still consumes a little bit of electricity, so make it a habit to plugged it off after using any of those appliances that you have.
Watch out for that water left running, this can really cut cost and help you revive your budget. Just observe and make a record of your previous bills and compare, try to experiment and look for better ways to revive your budget. You will see a drastic improvement and Iím pretty sure of that.

Food
Give this a try, see how long you can go just by eating the food in your house, Iíve tried this one for myself and I lasted for a month or so. It is also wise to lessen eating out of the restaurant, you will be surprise how much money you can save just by lessening your cravings for your favorite restaurants. Coupons and discounts are also valuable ways to save money on food.

Miscellaneous.
Haircuts, manicures, clothes shopping, groceries etcÖ These are the first thing you should take consideration when cutting your cost, cause these are the most typical source of overspending.
A newspaper or magazine subscription is not a necessity so you can cut it off easily. Switching brands can be a good cost cutting measure, make a switch on a much cheaper brand, but do not compromise quality, if you will just look harder there are lots you can find on.

Iím not saying that the road to cut cost is easy, actually itís going to be a rough road to get into, but itís worth all your effort.

4 Personal Finance Mentors

December 22nd, 2010 at 07:57 am

When you choose to take control of your finance, you might find useful to have mentors, you can refer to. A mentor can be a great source of information and advice.

Choosing your mentor really depend on your personality and goals:

1) Warren Buffet
Warren Buffet is one of the most wealthy people on the planet. Buffet is a wise investor, who have made significant profits buying and selling shares.
Buffet is also an highly frugal individual, who spend his money wisely

2) Mr Burns from The Simpsons
It can be hard to consider Mr Burns as a personal finance mentor, but he can often personal finance tips. Obviously his tips can be extreme and will require interpretation.

3) Sun Tzu
Sun Tzu is not officially a personal finance mentor, but his writting have a lot of finance applications. If you read The Art of War, you will notice that many sayings are actually real source of personal finance wisdom.

4) Your Grand Parents
Older generations are often underestimated personal finance experts. Senoiors have live in different times and learnt to live on little. Listen and watching your grand parents' lifestyle can teach you a lot.

To Be Frugal 3 Steps for a Start

December 14th, 2010 at 01:14 am

Even if Christmas means that more money is spent than saved, it is in everyone's mind that the end of the Christmas season and the start of the new year, will mean savings.
Adopting a frugal lifestyle should help you to spend less and therefore save more money. Being more frugal does require a little bit of efforts and practice, but the results are worth it.

Think Long Term
With less time and more things to do, it is often difficult to take the time to think about the long term impact of your purchase, however a little bit of thinking can help you save money. When you buy something, it is important to consider the long term costs of owning the item. Although you do not have to pay for these extra costs at purchase, you will have to do it through the life cycle of the product. For example the initial cost of a car is the car itself, but you will then have to buy insurance, petrol and pay for possible parts and repairs. The sum of these costs will put pressure on your budget, so it is important to consider them at the start.

Budget for Your Peace of Mind
When it comes to changing your spending habts, a budget will be your best friend. A well-made budget will help you to have all the information you need before making a purchase. Whether you are wondering if you have enough money to buy a plasma screen tv or whether you can afford to change your car, a budget will help you to answer these questions. To be useful, your budget will need to be realistic and take into account all costs. At the start, you won't need fancy budgeting sofware, a spread sheet will be enough.

Take it Easy
Changing your spending habits can be hard. If you are changing all your habits at the same time, you might find yourself a little overwhelmed. Big life changes are sources of stress, so it is probably better to start with small changes than can be managed easily. Adopting a progressive approach will ensure a smooth transition. On regular basis, you can review your changes, measure your results and add new challenges