Being financially secure is most people’s goal. With the state of today’s economy this can be difficult for many people. There have been layoffs, increases in mortgage rates, and banks are becoming stricter with their lending policies. In order to save yourself from financial calamity, follow some of these tips.
Cars and Homes are the Biggest Expenses
For the average family, houses and vehicles are the largest purchases that are made. The interest rates involved with these can be high and the monthly payments are likely to eat up a big chunk of your income. Before purchasing a car of home, make sure you shop around for the best interest rates available. The past year has seen banks beginning to lower their interest rates in order to enable more people to start purchasing homes and vehicles again. Having a lower interest rate on such a large loan will end up equaling lower minimum monthly payments.
Keep All of Your Receipts
Always keep receipts from the purchase of non-disposable goods. This means anything other than grocery bills. When you get home, file these receipts so that you can easily find them later on. Saving your receipts not only enables you keep track of your spending a little better, but is essential if you end up needing to return a product.
Set a Budget
Go over all of your expenses, including bills and estimated food allowance. Use these numbers to set up a budget. This way you are aware of how much money is going out each month as well as how much you have coming in. There is a lot of different free software that can help you with this, so that you don’t end up making any errors in calculations.
Saving Money the Practical Way
Christmas tends to be the time of the year that people end up spending the most money. If you prepare in advance for this you should be okay. Though, what about all of the birthdays, graduations, and weddings that may come along throughout the year when you are not prepared for them? Instead of going out and paying for a specific present, consider making the gift yourself. A gift that is made can have a lot more sentimental value to the person receiving it than something on their wish list.
Another great way to save money is to stop purchasing name brand groceries. A prime example of this is breakfast cereal. The price of cereal rises each year and for many families this is their primary source of breakfast. There are plenty of cereal companies that release products that look and taste just like their name brand counterpart. Also, most grocery stores carry their own brand of common products, from canned goods to toilet paper. Try to eliminate unnecessary items; bottled water is incredibly expensive when you compare it to drinking tap water from your home. If you don’t like the taste of your tap water, consider a purchasing a water purifying pitcher that can be stored in your refrigerator.