Money Saving Tips

How to Save Real Money When Running the Family Car

Your car will serve you well, and cost effectively, if you take the time to learn a few basic maintenance skills. Ready to start? Let’s go.

There are many areas where you can save real money when running your car. Some of these are:

– Actual running expenses

– Minimizing servicing costs

– Reducing the slide in value as it gets older

Let’s look at each of these areas in turn.

Actual Running Expenses – save on day-to-day running costs

a) Go easy on the throttle and the brake pedals. If you anticipate the traffic and road conditions a little more, you can save fuel and brake pad wear. Don’t be in such a hurry, go easy on the car controls.

b) Keep the tires at the correct pressure. If they look to be wearing unevenly, get them checked. Get a wheel alignment done at least once a year.

c) Shop around for the best fuel deal. Use coupons or dockets always.

d) When it’s time for new tires, shop around. Don’t be afraid to ask “What is your best price?” Compare prices and brands. Get to know the most suitable tire for your type of driving needs. Play off one retailer against another. The same goes for brake pads. Don’t just accept any quote.

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August 27, 2009
Shopping

Lessons Learned from Confessions of a Shopaholic

confessions of a shopaholicWe watched the movie Confessions of a Shopaholic the other night and I found it quite amusing.  The main character, Rebecca Bloomwood, is absolutely in love with shopping.  She can’t pass by a store window without seeing something that she wants to buy – and she does – and ends up racking up $16,000 in credit card debt.  She knows she gets a sense of satisfaction from shopping.  She feels happy when she buys the items and then afterwards she is discontent again, until she goes on her next shopping spree.

After a while she realizes her destructive pattern and when her own parents are willing to sell their beloved RV in order to pay off her debt for her, she finally realizes that things need to change.  She ends up having an auction and selling all of her stuff in order to pay back her debt.

A lot of people purchase things for emotional reasons.  It might make them feel better for a while just to make that big purchase.  Others purchase products in order to make them appear to be successful or happy. I remember watching a TV program about debt a while ago where a woman whose husband had passed away, continuously bought clothing and other items she couldn’t afford for both her and her sons.  She thought that by doing so she would be consoled and that she would make it up to her sons for not having a father.  She also hoped it would make it appear that everything was okay even though it wasn’t.

Shopping really can’t make anyone happy for the long term.  Material things just don’t cut it.  Emotional issues need to be dealt with but shopping isn’t the proper therapy.  The next time you go on a shopping spree, take the time to consider why you are doing it: Do you really need the stuff you plan to buy or are you just trying to make yourself feel better?

August 25, 2009
Money Saving Tips

Pay Less for Your Phone Service

pay less for your phone service - try VonageTelephone service can be expensive if you are not actively looking for the best bargains.  A lot of people these days don’t even pay for a home line.  They just use a cell phone.  If you do still like having a line at home, Vonage might be a good option for you.

We’ve been using Vonage for about 3 years and it is quite cheap compared to other phone companies in our area.  We pay on average $25 per month and that includes talking to people overseas in addition to local and long distance calling.

In order for Vonage to work you need to have a high speed Internet connection as Vonage uses Voice Over IP technology (VOIP).  The quality is good and if you move to another city or even to another country, you can keep your phone number.

The only major downside about using Vonage is that if your Internet goes down, your phone service does too.  We are fortunate to live in an area where our Internet seldom gives us issues, but if you are already have Internet connectivity troubles, I certainly wouldn’t recommend signing up for any kind of VOIP service.

There is really no need to be paying high prices for phone service nowadays as there is so much competition.  Check out your different options and don’t feel like you have to stay with your current phone service provider.  Besides, if you are considering changing phone companies, your existing phone company might offer you a better deal in order to retain your business.  There are also some free alternatives out there such as Skype.  Skype works great for connecting with friends internationally.  The bottom line is just make sure you are not getting ripped off.  You want quality service but you don’t want to have to pay an arm and a leg for it.

August 23, 2009
Wealth

Pay Yourself First

What does it mean to pay yourself first?  Rather than taking care of your bills and expenses each month andpay yourself firstthen seeing if you have any money left over to invest and save, paying yourself first means you put aside some money for saving/investing as soon as you get paid!  If you do that, then you know you will be able to tuck some money away for retirement as well as build up an emergency fund.

An easy way to pay yourself first is to set up an automatic withdrawal from your checking account on the same day you get paid.  That way you won’t even miss the money because it will be like you never had it in the first place.

Even if you are on a tight budget it is important to pay yourself first.  It may seem impossible on paper, but you need to do it.  In Rich Dad Poor Dad, Robert Kiyosaki talks about a time when he and his wife had almost no money but they still insisted on paying themselves before paying their bills.  Their bookkeeper at the time thought they were nuts.  But look at them now!  They have successfully learned what habits contribute to building wealth.

If you’re not already paying yourself first, I recommend that you take some time to look at your budget and set up an automatic withdrawal each month to start saving and investing for the future, even if all you can do is put aside $25 per month.  It’s better than nothing, and as you progress you can increase the amount you invest.

August 21, 2009
Investing

Some Fast Facts About RRSPs

An RRSP (Registered Retirement Savings Plan) can be a great way for Canadians to save money for retirement.  They have various advantages and disadvantages and some of them are discussed below.

First of all, the advantages:

  • Your contributions to an RRSP are tax-deductible.  You don’t pay tax until you withdraw from it.  Hopefully you won’t have to withdraw any of the funds until you retire.  Presumably you will be in a lower tax bracket by the time you retire and as a result you will pay less tax.
  • Any income or capital gains earned from RRSPs is also tax deferred.
  • You can split your retirement income by contributing to a spousal RRSP and as a result your household will pay less tax.
  • RRSPs can be transferred from one financial institution to another and you can have more than one.

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August 19, 2009