Do you clip coupons? Coupons are a great way to lower your grocery bill every week - you'd be surprised how the savings add up throughout the course of a year.
If you're like me, you clip coupons with every intention of using them, then you forget to take them with you to the store, lose them, or don't feel like sorting through the stack.
Here's a great way to organize your coupons.
Find a binder and some business card or trading card sheet protectors. Then, as you clip your coupons, slid them into the slots so you can see the product. I like this method because you can take the binder with you to the grocery store, then easily take a quick glance through it to find the coupon you need. You might even want to highlight the expiration date so you don't forget to use it in time. You could also get some binder tabs to keep them better organized.
Happy clipping!
30.3.10
28.3.10
Eliminating Debt: Step 1
So you are in debt. And want out.
If you have decided that you want to make a big leap and get out of debt - good for you! I promise, that decision will be one of the most liberating decisions you will ever make!
Now, I've said before that the process of getting out of debt is usually miserable, but I promise you won't regret it. Ever.
Step One: Stop the bad habits.
Sound easy? You'd be surprised how challenging it can be.
It is absolutely imperative that you stop digging a deeper hole of more debt. Probably the biggest problem with most families is credit cards. If your debt on your credit card (I mean the balance, not the minimum payment) keeps growing and is never being paid off, CUT UP YOUR CARDS! Or at least cut up all but your oldest card. Then, go to a strictly cash budget. Even if you don't have enough money right now to pay off any of the debt on your card, at least you are not going deeper and deeper.
A system that works well for a cash budget is called the Envelope Method. It will help you get on the right path to spending less than you make, which is key to getting and staying out of debt.
1. Create an envelope for each category of spending (house payment, groceries, etc.).
2. When you get paid, get all cash for your check.
3. Divide the cash between the envelopes.
4. Use only the cash that is in each envelope for your expenses. When an envelope is empty, you're done spending any money in that category for the month. Any extras goes directly to paying off debt - No shifting cash between envelopes!
See this article in LDS Living Magazine for a new cash management system called Mvelope. (I haven't had any personal experience with this program, but I have heard good things about it.)
If you have decided that you want to make a big leap and get out of debt - good for you! I promise, that decision will be one of the most liberating decisions you will ever make!
Now, I've said before that the process of getting out of debt is usually miserable, but I promise you won't regret it. Ever.
Step One: Stop the bad habits.
Sound easy? You'd be surprised how challenging it can be.
It is absolutely imperative that you stop digging a deeper hole of more debt. Probably the biggest problem with most families is credit cards. If your debt on your credit card (I mean the balance, not the minimum payment) keeps growing and is never being paid off, CUT UP YOUR CARDS! Or at least cut up all but your oldest card. Then, go to a strictly cash budget. Even if you don't have enough money right now to pay off any of the debt on your card, at least you are not going deeper and deeper.
A system that works well for a cash budget is called the Envelope Method. It will help you get on the right path to spending less than you make, which is key to getting and staying out of debt.
1. Create an envelope for each category of spending (house payment, groceries, etc.).
2. When you get paid, get all cash for your check.
3. Divide the cash between the envelopes.
4. Use only the cash that is in each envelope for your expenses. When an envelope is empty, you're done spending any money in that category for the month. Any extras goes directly to paying off debt - No shifting cash between envelopes!
See this article in LDS Living Magazine for a new cash management system called Mvelope. (I haven't had any personal experience with this program, but I have heard good things about it.)
22.3.10
April 15 = Taxes Due!
If you haven't filed your taxes yet, quit procrastinating! You don't want to be stuck rushing to finish at 11:00 at night on April 15...Plus, you might be pleasantly surprised with a refund :)
If you are not planning to hire an accountant or tax prep agency, I recommend TurboTax. Personally, I've never used any other program (besides the professional program for accountants when I was preparing taxes as an intern at Mikunda Cottrell, & Co., who are great if you are in Alaska and want taxes done professionally). It' s pretty easy to use if you make sure to READ EVERYTHING carefully. I've never had a problem with it. Depending on the complexity of your taxes, you may even be able to file for free, but be careful. Last year I accidentally asked for it to file my UT state return for my on-campus job and didn't realize that they were going to charge me for it. I ended up paying more to file the state return with Turbo Tax than I paid in taxes to Utah! Just don't rush through it and you will be fine.
If it's coming down to the wire and you don't think you will be able to finish in time, DON'T FORGET to file an extension with our good buddies at the IRS.
If you are not planning to hire an accountant or tax prep agency, I recommend TurboTax. Personally, I've never used any other program (besides the professional program for accountants when I was preparing taxes as an intern at Mikunda Cottrell, & Co., who are great if you are in Alaska and want taxes done professionally). It' s pretty easy to use if you make sure to READ EVERYTHING carefully. I've never had a problem with it. Depending on the complexity of your taxes, you may even be able to file for free, but be careful. Last year I accidentally asked for it to file my UT state return for my on-campus job and didn't realize that they were going to charge me for it. I ended up paying more to file the state return with Turbo Tax than I paid in taxes to Utah! Just don't rush through it and you will be fine.
If it's coming down to the wire and you don't think you will be able to finish in time, DON'T FORGET to file an extension with our good buddies at the IRS.
18.3.10
Good Debt v. Bad Debt
I study Business Finance at BYU. Just like a business entity, before taking on debt your family should decide whether that debt is good or bad.
President Hinckley counseled to ONLY go into debt, if necessary, for two things: (1) a modest home, (2) education. I believe his counsel is not just a "nice idea;" it is a commandment from the Lord for our temporal salvation.
Good debt--Businesses usually try to have at least a little bit of debt as good "leverage". The idea behind leveraging up is that they are taking on projects that will eventually help them grow their revenues, and not that they take on debt to buy fancy desks or office art. The same idea should go for your personal financial life.
Pretty much the only good debt for personal finances is education. Why? Because (usually) with more education, you are able to get a better job, get paid better, etc. Education is one of the most important investments you will ever make, and not just in a monetary sense. Try to get by as much as you can without it, but if you do need some education debt, be sure to have a sound plan to pay it off quickly to avoid the interest costs and get it off your "books".
Your home might also be good debt. For most people, buying a home outright is somewhat impractical. So long as you have a home that is modest for your needs, your debt is probably fine. Keep in mind that bigger houses require more energy, more repairs, more maintenance, etc. So if you go take on extra debt in order to buy a bigger house, remember that you will also have those added expenses in addition to a higher mortgage and/or interest payments.
Bad debt - Wow. I could go on and on about this one. The list is long: car loans, furniture loans, credit card debt, etc. Pretty much all consumer debt is something to avoid like the plague. If you let yourself get into too deep into it, the process to get out is miserable. Best advice: avoid it in the first place.
Car Loans - Discouraged by financial planners because they rapidly lose value. So not only are you losing cash by paying a ton of interest with your car payment, but your personal net value (total assets minus total liabilities) is decreasing quickly as the car loses value. Be cautious. When shopping for a car, ALWAYS distinguish between WANTS and NEEDS.
Credit Card debt - Big no no. Wherever possible, pay off your credit card balance in full every month. Interest rates are high because credit card companies know that it their cards make it really easy for consumers to get what they want, when they want it. It helps me to just pretend that my credit card is like a checking account and I can only spend the money that I really have in my bank account. Exercise self control.
If you are already in debt, stay tuned and I'll give tips on how to get out.
President Hinckley counseled to ONLY go into debt, if necessary, for two things: (1) a modest home, (2) education. I believe his counsel is not just a "nice idea;" it is a commandment from the Lord for our temporal salvation.
Good debt--Businesses usually try to have at least a little bit of debt as good "leverage". The idea behind leveraging up is that they are taking on projects that will eventually help them grow their revenues, and not that they take on debt to buy fancy desks or office art. The same idea should go for your personal financial life.
Pretty much the only good debt for personal finances is education. Why? Because (usually) with more education, you are able to get a better job, get paid better, etc. Education is one of the most important investments you will ever make, and not just in a monetary sense. Try to get by as much as you can without it, but if you do need some education debt, be sure to have a sound plan to pay it off quickly to avoid the interest costs and get it off your "books".
Your home might also be good debt. For most people, buying a home outright is somewhat impractical. So long as you have a home that is modest for your needs, your debt is probably fine. Keep in mind that bigger houses require more energy, more repairs, more maintenance, etc. So if you go take on extra debt in order to buy a bigger house, remember that you will also have those added expenses in addition to a higher mortgage and/or interest payments.
Bad debt - Wow. I could go on and on about this one. The list is long: car loans, furniture loans, credit card debt, etc. Pretty much all consumer debt is something to avoid like the plague. If you let yourself get into too deep into it, the process to get out is miserable. Best advice: avoid it in the first place.
Car Loans - Discouraged by financial planners because they rapidly lose value. So not only are you losing cash by paying a ton of interest with your car payment, but your personal net value (total assets minus total liabilities) is decreasing quickly as the car loses value. Be cautious. When shopping for a car, ALWAYS distinguish between WANTS and NEEDS.
Credit Card debt - Big no no. Wherever possible, pay off your credit card balance in full every month. Interest rates are high because credit card companies know that it their cards make it really easy for consumers to get what they want, when they want it. It helps me to just pretend that my credit card is like a checking account and I can only spend the money that I really have in my bank account. Exercise self control.
If you are already in debt, stay tuned and I'll give tips on how to get out.
11.3.10
Savings, Step 1: Emergency Fund
As you get your savings started, it turns out there is a method to the order in which you should save.
The first step is the Emergency Fund. An emergency fund is for...EMERGENCIES! Don't touch it for anything else! That would include unexpected medical procedures, loss of a job, etc. Use self control.
How much is enough? Most experts recommend estimating your average monthly expenses and then multiplying that by six to twelve months. Some also say that you should save 6 to12 months of your monthly income rather than expenses. Whichever you choose to do, the idea is that you will have plenty to get by should an emergency occur and your family will be much less likely to experience financial distress.
How to do it? Each month, when you are saving 20% of your income, put that 20% into an emergency fund. Use an account that is liquid (meaning it can be easily converted to cash) and low-risk -- probably a savings or money market bank account, NOT an investment account as the balance could decrease. Keep doing this until you have 6 to 12 months in savings and then you can go on to the next step in savings, which I'll tell you about later.
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The first step is the Emergency Fund. An emergency fund is for...EMERGENCIES! Don't touch it for anything else! That would include unexpected medical procedures, loss of a job, etc. Use self control.
How much is enough? Most experts recommend estimating your average monthly expenses and then multiplying that by six to twelve months. Some also say that you should save 6 to12 months of your monthly income rather than expenses. Whichever you choose to do, the idea is that you will have plenty to get by should an emergency occur and your family will be much less likely to experience financial distress.
How to do it? Each month, when you are saving 20% of your income, put that 20% into an emergency fund. Use an account that is liquid (meaning it can be easily converted to cash) and low-risk -- probably a savings or money market bank account, NOT an investment account as the balance could decrease. Keep doing this until you have 6 to 12 months in savings and then you can go on to the next step in savings, which I'll tell you about later.
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18.2.10
How To Save $6,282 in a year!
How can I cut back on spending? The small things add up quickly! Here are some ideas I shared with some BYU students:
Plan meals before going grocery shopping – save $260 (by not wasting $5 of food a week)!
Bake homemade bread – save $104 a year ($2 a week)!
Walk to school – save $360 ($30 a month) a year!
Wait for movies to come to the Dollar Theater or Redbox--if you see two movies a month, you save $228 a year!
Go jogging and/or use BYU’s workout facilities (free!) instead of gym memberships – save $840 (for two memberships at $35 a month)
Cook dinner together as a date instead of going out to eat -- save $780 a year ($15 a week)!
Organize coupons in business card sheet protectors in a binder. Take binder with you on shopping trips. – save $260 a year ($5 a week)!
Be conscious about utility usage. Reducing your bill by $10 saves $120 a year!
Replace tap water with a $1 bottled water, juice, or soda (or buy a Brita filter) – save $730 each year!
Pack a lunch (for $1) instead of going for fast food (for $6 per person) – save $2600 a year!
Search Craigslist.org or DI for gently used items such as sporting goods, vehicles, furniture, baby stuff
Shop consignment (Plato’s closet)
For more ways to save, go through your spending habits line by line and look for any way you can make adjustments.
13.2.10
Build A Better Budget : Part 3
I just realized that I forgot about a very important part of creating your budget--the structure!
1st -- Pay the Lord. 10%
2nd -- Pay yourself (personal goals). 15-20% is recommended. We'll talk more about this later.
3rd -- Pay others (expenses).
4th -- Apply leftovers to your personal goals.
If you can learn to use this structure, you are twice as likely to be able to accomplish your goals because you get two chances to put your money towards those goals. Many people set up a budget like this:
Income - Pay the Lord - Pay others - Pay yourself if there's anything left over.
Can you see what's wrong with this method? If you ALWAYS pay yourself before you pay others, you are guaranteed to meet your personal goals eventually. If you pay others first, you likely won't have anything left for yourself. If you're still skeptical, here's what L. Tom Perry had to say about this:
"After paying your tithing of 10 percent to the Lord, you pay yourself a predetermined amount directly into savings. That leaves you will a balance of your income to budget for taxes, food, clothing, shelter, transportation, etc. It is amazing to me that so many people work all of their lives for the grocer, the landlord, the power company, the automobile salesman, and the bank, and yet think so little of their own efforts that they pay themselves nothing."
CHALLENGE: Always pay yourself 20%.
1st -- Pay the Lord. 10%
2nd -- Pay yourself (personal goals). 15-20% is recommended. We'll talk more about this later.
3rd -- Pay others (expenses).
4th -- Apply leftovers to your personal goals.
If you can learn to use this structure, you are twice as likely to be able to accomplish your goals because you get two chances to put your money towards those goals. Many people set up a budget like this:
Income - Pay the Lord - Pay others - Pay yourself if there's anything left over.
Can you see what's wrong with this method? If you ALWAYS pay yourself before you pay others, you are guaranteed to meet your personal goals eventually. If you pay others first, you likely won't have anything left for yourself. If you're still skeptical, here's what L. Tom Perry had to say about this:
"After paying your tithing of 10 percent to the Lord, you pay yourself a predetermined amount directly into savings. That leaves you will a balance of your income to budget for taxes, food, clothing, shelter, transportation, etc. It is amazing to me that so many people work all of their lives for the grocer, the landlord, the power company, the automobile salesman, and the bank, and yet think so little of their own efforts that they pay themselves nothing."
CHALLENGE: Always pay yourself 20%.
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