Found Money: How To Generate
Quick Cash In An Emergency
ARE YOU READY TO START A GOOD
SAVINGS PLAN?
You are ready but you feel at a loss as to
how you will come up with that extra money. You are already
barely eking out a living. You can manage if you train yourself
to think differently. That is the first part of any good plan.
You have to think right. If you don’t think right towards your
money, you won’t be able to manage it.
Your First Step: Rethink how you think
about money
Saving money is a calm state of mind.
Before you can even begin, you have to say NO to all of the
spending—and stop thinking that you actually need all the stuff
you’re spending all of your hard-earned money on. Just don’t
spend.
That is simple enough! Say NO to all of the
excuses and reasons for why you feel you MUST spend. Tell
yourself, NO MORE EXCUSES, PERIOD! The very next time you want
to buy something, take the $50 or $100 out of your wallet,
instead and stash it away somewhere. Do you see the logic?
That’s why you call saving. You don’t end up with stuff; you end
up with the hard-earned MONEY.
Another new way of thinking will be to
think of frugality as your savior. Become a confirmed cheapskate
and do as your most frugal friends do. Pay special note to the
fact that frugal friends fix the shower curtain instead of
buying a new one. Sit down with Depression-era relatives and ask
about how they made ends meet despite even desperate times. You
want to learn to economize.
The next step in rethinking is to become
inspired. Spend all of your spare time online and search out
those frugal Web sites. Look at “living cheaply,” “frugal
living” and “voluntary simplicity.” You’ll find a ton of good
Web sites devoted to living on less, such as:
thefrugalshopper.com, simpleliving.net and frugaliving.com.
Learn to turn shopping time into activity
time. Go for a bike ride, walk down memory lane, take the kids
to the park; do anything and everything that you can to take
your mind off shopping and spending. It works!
Step # 2: Time to Save!
There are any number of creative ways to
live on less. However, you don’t want to make your life
miserable. Here are some great ways to economize without missing
quality of life.
Don’t think too much about it – just do it!
Direct deposit is now your best friend! Your money is whisked
away into your IRA, 401(k) or money market account—and you don’t
have to do a thing to make it happen. Just drop by your payroll
department and/or your bank and fill out the forms. Do it today.
Eat meatless some of the time. Go veggie.
Prepare just three meatless days a week (without substituting
pricey fish) and you could save $25 a week, which equals $100 a
month, which equals $1,200 a year! Beans: You will learn to love
them.
Play the money game. Whenever you get a $5
bill, put it aside for later. Alternatively, do the same with
ones, with quarters or even all your spare change. You’ll have a
nest egg built up before you even miss a nickel.
Never spend the extras. Save all of your
income-tax refund, your holiday money from the folks, the $20.38
overpayment check from the telephone company and any other
extras and save every penny.
Negotiate and Haggle. You will be impressed
by who will drop their prices, fees and interest rates:
airlines, hotels, credit card companies, and even
computer/appliance/rug salespeople. Before you even think about
paying full price: Haggle a bit first.
Re-evaluate your money before you spend.
That dinner out for the family will cost more than you spend on
groceries in a week. That fancy pair of shoes is worth half the
cost of a commuter pass. Learn what your money is worth to you,
and you won’t be so quick to dispose of it.
Don’t overpay on your taxes. Yes, you love
to get a big refund from the IRS every spring. The fact is,
though, you’re effectively lending money to the government and
interest-free. Go through your tax return and see if you can
hold out until Dec. 31 to maybe get a $150 refund. That way you
can use your money NOW should you need it for an emergency and
bank the refund when you get it later.
Decide to raise your insurance deductibles.
Reassess each of the deductibles for your various kinds of
insurance. If you can raise them at all, your premiums will
drop.
Bring your mortgage costs down. Look at
whether or not the rate is too high. If it is, look to
refinancing – this will save you money. Now, let’s look at the
private mortgage insurance (PMI) you’ve been paying because you
didn’t have enough money to make a 20% down payment. If the
equity in your home is greater than 22%, make sure that it is
cancelled. It’s the law. Finally, pay up on your mortgage. If
you can manage an extra $100 per month, you will save thousands
in interest costs over the long haul.
Toss out those nasty, glossy catalogs. The
best-known form of spending temptation known to man or woman is
the catalogs. Sure they are fun and look good, but are they
worth the risk of spending? Chuck them straight out into the
trash.
Refuse those unnecessary fees. Like the
$2.50 you pay just because the ATM is right there, right now as
opposed to walking two blocks to your bank, where you don’t get
charged at all every time you use your cash card. Alternatively,
how about the late fees for returning videos? These really add
up. Don’t forget those fat charges banks hit you with when you
write a check that, well, bounces.
Clean it yourself. I’ve discovered a very
cool trick: When a clothing label says, “Dry Clean Only,” I wash
it. On the other hand, dab out that little mustard stain with an
old-fashioned cleaning device cleverly known as a sponge.
Don’t pay for a pro. If you can fix the
neighbor’s garage door and she can paint the kitchen: go for it
and save.
Put your raise in the bank. Put that tiny
3% to 5% boost in the paycheck on your direct deposit and live
on your previous salary.
Pay smart for long-distance. Evaluate all
of the different telephone plans for value. Pay attention to
what you are currently paying per minute. Some dial-around codes
or cheap calling cards (one without a surcharge per call) may
give you a better rate. Not only will you save, but also you may
find you won’t need to speak to Alvin in Schenectady so often.
Just buy the basics for the pets. Say no to
pet pampering. Does your dog need those t-bone snacks? Does your
cat need that rabbit-fur-lined toy? Probably not.
Vow never again to pay full price. The next
time you must shop, hop onto the World Wide Web. Look for eBay,
half.com and craigslist.org for excellent sources of “lightly
used” goods—everything from books to jewelry to office
furniture—even the entire first season of Star Trek on video.
When you are focused on being savings
minded, you’re thinking about money changes. Before you know it,
you have substantial savings.
>>> Table
of Contents <<< |
