10 Tips to Saving Money

Tip 1: Make your Money Work for You - Checking accounts are made for transactions, thus the interest on them is very low, if any. To earn a higher interest rate on your money, think about moving it from your checking account to your savings account. You can also put your money into CDs for various lengths of time, but the longer the money stays in the CD, the more interest you will be accruing.

Tip 2: Get a Card with Locked In Rates - Free airline tickets, free gas, free football tickets – Everywhere you look companies are trying to offer you products for using their credit cards. They all sound great at first, but then you get hit with those enormous finance charges and late fees, and eventually the APR you thought you were getting has now doubled as a penalty. What you should do? Pick up the phone, cancel the credit cards you currently have without a locked in APR and get a new one that has locked in rates. If your current rate is over 12% APR it is time to look for a new card.

Tip 3: Start Retiring Now -It’s hard playing catch up with your retirement fund down the road, so it’s best to think about saving for the future now. If you get use to putting money in a retirement account now, it will be easier down the line. Your qualified retirement contributions are tax deferred meaning the money is not taxed until it is withdrawn from the account. Also, the amount you put into the retirement account each month will end up costing you less than you actually think. Say you want to contribute $50 a month. Only $35 to $40 will actually come out of your paycheck depending on which tax bracket you fall under. Talk to a Financial Advisor. Employer sponsored retirement accounts are also good because some companies, including DUKE, let you borrow that money for down payments on houses or for any other reason, without having to pay taxes on that money.

Tip 4: Refinance your House - Even though interest rates have gone up in the last few months, they are still relatively low, so you might want to think about refinancing. Refinancing could mean lower mortgage loan rates, which amounts to few extra bucks in your pocket every month.

Tip 5: Think about Debt Consolidation - Have bills left over from the holidays, or having trouble catching up with that car payment? Think about consolidating your monthly payments into one, low rate loan through the credit union. By consolidating your bills, it makes them easier to keep track of preventing late fees and you can have the payments directly drafted from your account.

Tip 6: Save More Moola - Say bye-bye before it ever gets to you. Have money directly deposited into a savings account each month, before you buy another pink shirt or more basketball tickets. Also, make sure the money goes into an account that is not directly linked to a check or debit card, like savings, so the money is harder to get your hands on.

Tip 7: Saving While Grocery Shopping - Obviously clipping coupons is one of the best ways to save money in the stores, but there are other ways too. Make sure you read all the newspaper circulars that come out, and shop for things that are on sale. Buy store brands and never go shopping without a list. If you don’t know exactly what you are looking for, you are more inclined to pick up items that you don’t need.

Tip 8: Staying Healthy Allows you To Save - It may not seem important now, but down the road those regularly scheduled dentists and doctors appointments allow you to stay healthier and happier. Spend more time exercising and less time shopping. And if you are still smoking, consider stopping, if not for the health related issues, then because it will save you hundreds of dollars a year. Here’s the math on smoking just 2 packs a week- $3/ pack x 2 = $6/week52 weeks in a year x $6 = $312**That’s an extra $312 you could put towards your house or car payment, or extra money for your retirement plan. Just think how fast that money could add up.

Tip 9: Economizing Your House - Turn the thermostat down when you leave the house to lower your energy bill. Insulate your water heater and turn it down when you expect to be away for a number of days. Close your blinds to keep the house cooler during the day and warmer at night. Learn how to do maintenance and home projects yourself. Other ideas.

Tip 10: Entertainment on a Budget - A simple night out on the town can quickly add up, so try going cheap next time. Consider going to a museum or art exhibit. These events are usually free or ask for a small donation for entrance. It can be a cultural experience that you and your child will learn from. A lot of the museums today have exhibits set up specifically for kids so everyone involved will have fun.

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