Money Matters

For the most part, the majority of us are looking for ways to cut back on spending, save a few pennies here and there, and dream of a luxurious retirement life on a sunny beach somewhere. So, by following a few simple pieces of advice, that day might actually come sooner than later.

Credit CardsIf you have a credit card and you know that you are irresponsible with it, close it, cut it up, do whatever you have to do to pay it off and get rid of it. Another option, is to call the credit card company and ask them to lower your limit to a sustainable, payable amount. For example, if you have budgeted $500 a month for fun purchases, going out, shopping, etc., then have them set the limit to $500 a month and make sure that you pay it off every month. Figure out your budget and work with it... embrace it and be proud to stick to it!If you an do this, then you should take advantage of the credit card system! Many companies offer rewards such as cash back, airline miles, gift cards, etc. Take advantage of these as long as there are no annual fees. USAA bank offers a rewards card that does not have annual fees and you get 1% cash back. This works great if you can be strict with your spending. Take advantage of the cash back around the holidays and you will have a few extra dollars to splurge on something you've had your eye on for awhile.

Shopping

If you have found something that you want to buy, but think that it seems a little overpriced, be patient and shop around. There are a variety of ways to do this. My favorite way is with my smart phone. I have an application that allows me to take a picture of the bar code of the item, then it scans the internet, starting with Amazon.com to find the same item. Instantly, I can see the results and compare prices. If I don't need it right away, I will do a little bit of research on the internet and try to order it. You would be amazed at how overpriced major retail stores are, including Best Buy, Target, and Barnes & Noble.

Organizing BillsI know this sounds completely logical, but what I am about to tell you, many people don't consider. Every month you sit down and pay your bills, or you set up your auto-bill pay by inputting the amount and telling the system which day to send the money. What most people don't consider is the date that they choose to send the money can affect their checking account balance. The longer that you have your money in your account, the more interest you earn on that money. If you have a bill due on the 15th, and you sit down to pay your bills on the 1st, chances are, you pay that bill two weeks early. You just gave somebody else the interest on that money. Back before technology allowed us to pay bills online, I had my bills labeled with the "Send" date and taped to the calendar. I refused to give the electric company or mortgage company those few dollars (or pennies) of interest that I would earn by keeping that money in my account for another two or three weeks.

Building a Budget

Building a budget is a lot easier done than said. Honestly! The one rule is OVER ESTIMATE! Determine what you spend and where, its not that hard. Start with Gas, Car Payment, Insurance, Groceries, Utilities, Mortgage/rent, and fun.

Use your monthly income as a gauge. Determine where you overspend and where you can cutback in order to be able to save.