Debt

What You Can Do To Save Money With Your Student Loans

ways to save money when choosing student loansAnyone that has gone through college or has kids in college knows that it is pricey, which leads to many seeking out student loans. Just as with any type of loan, it is vital that you do your research to find the best student loans for your situation. Different loans will get you different amounts of money with various circumstances behind the loan. However, there are a few things you can do with any student loan to save money.

With student loans, the interest rate is adjusted every July 1st making it difficult to know how much you really are going to have to owe when getting out of college. There is, however, a way to lock your interest rates to avoid having them raised after a certain period of time. By consolidating your interest rates you can have them permanently locked for the remainder of your studies.

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September 26, 2009
Budgeting

Personal Financial Management- Basics That Can Help You

Today more than ever, it is important to learn the basics of personal financial management. With the costs of nearly everything rising, it is crucial to learn how to set and stick to a budget, pay off debts, and save for the future. There are many small things you can do that will contribute greatly to helping you with your own personal financial management.

The easiest way to do this is by learning how to make the most out of the money you earn. Earning more money will not help you in the end, because you will only end up spending more if you do not learn an effective way to handle your personal financial management. You must learn the difference between what you want and what you need, and how to prioritize them both. It takes self control to live within your means, and to know when you can afford something, and to walk away from it if you cannot. But that is what it takes to make the most of your income.

Your budget should include money set aside for emergencies, expected purchases, living expenses, and bills. Setting a small amount out of each paycheck aside for unexpected emergencies, such as illness or car repairs, will save you from having to possibly pay interest on a loan to take care of your problem. Taking it out of your check allows you to prepare ahead of time, and keeps you from having to come up with a lump sum of money all at once, hopefully, preventing you from incurring more debt.

If you know you need to make a large purchase in the near future, such as a new washing machine, or a new computer, plan ahead, and set aside money for that item from each check as well. Once you have saved enough money, shop around for the best deal. Try to never make a large purchase unless you can do it with cash, to avoid paying high interest and fees.

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September 24, 2009
Money Saving Tips

Buy U.S. Dollars When The Exchange Rate is Favorable

buy U.S. dollars in advance instead of last minuteI recently decided to follow the exchange rate between the Canadian and U.S. dollar as we are planning to use some U.S. funds in the near future.  As it turns out, it happens to be a great time to buy U.S. dollars since the Canadian dollar is hovering at around 93 cents right now.  I have been checking the exchange rate periodically throughout each day and have noticed that it fluctuates frequently.  As well, since I began monitoring it on September 3rd, the Canadian dollar has gone from just over 90 cents to almost 94 cents.

I highly recommend setting up a U.S. dollar account through your financial institution if you haven’t already done so as it makes it much easier to take advantage of favorable exchange rates.  I suggest opening an account that allows you to buy and sell U.S. dollars through your online banking so you don’t have to visit your bank every time you want to transfer money to your U.S. account and vice versa.

Some people also make tax-free money by buying some U.S. dollars when the dollar is low and selling when it is high. All you need is some spare money and a lot of patience.  You can do this by exchanging other currencies as well.

Rather than buying U.S. funds last minute before you go on a trip, why not check the exchange rates every once in a while and buy the U.S. dollars in advance?  You will save a lot of money and it won’t take a lot of your time.

I check the exchange rate right on my online banking so I know exactly how much I would be getting for my Canadian dollars if I choose to complete the transfer.  If you don’t have access to online banking, you can also check the exchange rates online.   You need to note, however, that just because the site tells you a certain exchange rate, it doesn’t mean your financial institution’s rate will be exactly the same.  In other words, most banks and financial institutions charge a service fee or a commission so your exchange rate will be a slightly less than what you see.  That’s why I prefer to go directly to the source, my financial institution’s online banking, so I know exactly what to expect.  The best part is, if I don’t like the exchange rate at the time I can easily cancel the transaction.

So, if you think you will be needing U.S. funds in the future, rather than waiting until the last minute, and taking whatever exchange rate you can get, consider buying U.S. funds in advance so you can make your money go further.

September 22, 2009
Book Reviews

Discover Great Tips in The Home Energy Diet

Check out The Home Energy Diet - Make Your Home Power SmartThe Home Energy Diet: How to Save Money by Making Your House Energy Smart by Paul Scheckel

Paul Scheckel wrote The Home Energy Diet and he is obviously a firm believer in what he is talking about.  He drives a car powered by vegetable oil and lives in a solar-powered home among other things. His book contains some really great information on how to make your home more energy efficient.  The book includes all kinds of graphs and charts to explain energy consumption and he provides explanations that are easy to understand.

Paul provides great tips on using the appliances around your home to maximize energy efficiency.  He answers frequently asked questions such as whether it’s more energy efficient to wash your dishes by hand or use a dishwasher.  According to the book, a study was conducted at a university in Germany.  Volunteers washing dirty dishes in a sink used an average of 27 gallons of water and 2.5kWh of water-heating energy to wash a 12-place dinner setting.  A dishwasher handling the same number of dirty dishes used only 4 gallons of water and about 1.5kWh of electrical energy.  After all the dishes were washed, about half of the dishes washed by the volunteers were still dirty whereas the dishes that were washed in the dishwasher were clean.

For more interesting facts about energy efficiency around your home, check out The Home Energy Diet and do your part in making your home power smart.

September 20, 2009
Gifts

Use Your Money To Make A Difference

be a good steward - use your money to make a differenceI have been thinking recently about what we can do to be good stewards of our money.  Of course we need to use our money to cover our basic living expenses, but what can we do with the rest of it?  How can we make the most of what we have to help others and make sure that we are giving back?

I think two things are involved.  First, it’s important that we manage our money responsibly.  By living within our means and budgeting, we can ensure that we don’t go deep into debt.

Second, if we discipline ourselves and spend our money wisely, imagine how much good we can do in our world by contributing to organizations and causes we are passionate about!  And, as a result of giving, we will feel so great, knowing that we have helped to make a difference.

It’s important to note that it’s not about the amount you give but the attitude in which you give it that really matters.  Not everyone can afford to give a lot or invest a lot due to tight financial circumstances, but that doesn’t mean they can’t give anything.

Although it would be great to be rich and be able to donate millions to various charities, etc., sometimes I need to remind myself that I don’t have to be “wealthy” to make a difference.  We can all be good stewards of our money and if we all focus on good stewardship, our world will be a better place for everyone.  My goal for the next few weeks is to look for meaningful ways that I can give back.

September 18, 2009