Archive for the 'Money Saving Tips' Category

To get a jump on next year’s taxes, make sure you are taking full advantage of all salary reduction plans available through your employer. When tax time rolls around again, you’ll be glad you took a few minutes to make small changes that pay big.

Your first priority is to max out your 401k contributions if this is an option your employment offers. Remember to invest enough in your 401k to get any company match, typically an extra 6% or more annually based on your contribution.

Many employers also offer pre-tax deduction options such as flexible spending accounts for medical expenses, child care costs, and public transportation fees. By paying for these expenses before taxes, you are actually paying less in the long run.

For example, if you contribute $2,500 to your flexible spending account, you do not pay taxes on that money. You need to remember to go through the reimbursement process, but it costs you less to go this route.

Maybe yesterday’s ideas to save on gas consumption got you thinking about buying a hybrid vehicle. If so, experts say this is the ideal time to test drive a hybrid if you are in the market.

Not only have prices dropped as supply begins to exceed demand, valuable federal tax incentives to purchase that exist now may be phased out over the summer. For example, the government currently offers a $2,600 tax credit on the purchase of a 2008 Mercury Mariner Hybrid but only on a certain number of vehicles. Also, note that state and local governments may offer tax incentives if you buy a hybrid, employers sometimes offer money back to employees that choose hybrid vehicles, and insurance discounts may apply.

In response to the phase out of tax credits for consumers, some manufacturers are offering more in the way of rebates and discounts to woo buyers. However, keep in mind that when summer comes and more folks are shopping for cards, prices are likely to stay high. The next few weeks may be your most economical opportunity to buy a hybrid.

CNN Money also offers a breakdown of the Top Ten Greenest Cars for your consideration.

Wayne Gerdes may just be the most fuel-efficient driver in the world; we can all learn something from his diligence. Through a thoughtful combination of coasting and accelerating with very little braking, Gerdes gets 59 miles per gallon driving a non-hybrid Honda Accord and over 100 miles per gallon driving a Toyota Prius on average. Apply these same ideas to think through any area in your life where you can save money. Remember, every cent counts when it comes to reaching your financial goals.

Gerdes’ ideas to achieve fuel economy include:

• Keep your car as empty as possible because additional weight reduces your fuel economy.
• Remove any unused racks or other objects on the outside of your vehicle.
• Inflate your tires to the maximum pressure and check the tire pressure frequently.
• Do not speed.
• Drive with road conditions to avoid using the brakes.
• Do not idle: “If you’re going to be stopped more than seven seconds, turn off the engine.”
• Don’t use the reverse gear in parking lots. Instead pull into a spot so that you are facing out.

For more of his economical thoughts, read the article about Gerdes on Mother Jones or listen to his interview with the Sierra Club.

Whether you are looking for entertainment ideas for you or your children, here are a few ideas that will cost you next to nothing. Enjoy!

1. Establish Family Game Night; play board games, cards, or charades.

2. Cook a nice meal.

3. Dance.

4. Draw, sketch, paint.

5. Make a card or gift for a loved one.

6. Write letters.

7. Work out using an exercise video. Discount bins and the library are great sources.

8. Browse the goodies at a farmer’s market or check out local yard sales.

9. Read out loud, preferably to a little one.

10. Take a walk.

The good news is that your 2006 income tax return isn’t due until April 17, 2007. Because the April 15 deadline for filing income tax falls on a weekend day, the IRS typically adjusts the deadline to the next business day. However this year April 16 is a holiday (Emancipation Day) in Washington, D.C., so the IRS has set the deadline for April 17 nationwide. The bad news is that that’s five weeks from today. It may seem like you have plenty of time until then, but preparing now will save you money later.

Overcome your fear of finance and get to work on your tax paperwork. Before filing your return, remember to read up on recent tax legislation to see if the new laws will save you money. After filing, remember to do your own filing. Check our recordkeeping guidelines to be sure you have what you need to adequately document your 2006 year in taxes.

If you think finance is rather dry and boring, check out Feed the Pig and enjoy the videos. These hilarious skits focus on interruptions in spending and may cause you to consider a few of your own spending patterns. Are they perhaps a bit, errr, greedy? Focused on the short term? The U.S. Commerce Department of Economic Analysis reports that Americans spend $1.22 for every $1.00 they earn! 

If this is you, be sure to try Feed the Pig’s collection of tools and tips to help you save. The American Institute of Certified Public Accountants (AICPA) and state CPA societies partnered with the Ad Council to create Feed the Pig to encourage younger Americans to save as a key step in building a solid financial future. 
 

We spend a lot of money at the grocery store so there are lots of opportunities for saving. Here are a few ideas for changes that will put change in your piggy bank.

1. Consider size
First, bigger isn’t always better. You may save more by buying a larger bottle or jar, but if you don’t use it all before trashing it, the larger size isn’t worth the extra money. Where it does make sense on items such as paper goods and toiletries, it’s best to buy in bulk to save.

2. Invest in groceries medium-term
Buying a deep freezer will pay you dividends, you’ll always have frozen goods on hand and you can buy them in bulk or on sale to use later. With the extra space, you can also cook in bulk more and freeze for future use.

 3. Drink tap water
Americans spend over $10 billion annually on bottled water. Though studies show that bottled water adds no nutritional value and may even be environmentally unsound, Americans continue to pour money down the drain by buying and hauling home water when their own tap water is potable in most cases.
 
4. At the store
Plan meals and take a list. Eat before shopping, you are vulnerable to overspending when hungry. Don’t take along your favorite impulse buyers AKA your kids. Don’t buy any non-grocery items in a grocery store unless it’s a terrific sale.

Today’s tip to save you money: switch to compact fluorescent light bulbs throughout your home. The advantages of compact fluorescent (CF) bulbs over traditional incandescent bulbs are numerous:

- They last 8 to 10 times longer.
- They use an estimated 75% less energy.
- They produce 90% less heat while providing you more light per watt.

For example, a 25 watt CF bulb delivers about 1800 lumens as compared to 1750 lumens from a 100 watt incandescent lamp. One 20 watt CF bulb instead of a 75 watt incandescent bulb will save you about $65 over the life of the bulb (based on a rate of $.12 KWH). Now, count the number of light bulbs in your house currently and multiply by $65.

Additionally, many utility companies will actually reimburse you for switching to more energy-efficient compact fluorescent light bulbs making this a true money saver for you.

Here are a few easy ways to make little changes around your home that will turn into dollars in the long run.

1. Ask your power company to do a free energy audit on your home to help you find ways to cut waste (and costs). Remember to do this annually.

2. Lower the thermostat by two degrees and save an average of 25 kilowatt hours each month. This small change will add up over the months. If your home is vacant for a fixed time each day, a programmable thermostat may be a good investment for you.

3. Lower your water heater by ten degrees and save another 25 kilowatt hours per month. You won’t even notice the difference in water temperature.

4. Fix drafts with weatherstripping or even old tube socks filled with sand. Cover unused windows with plastic sheeting in the winter.

5. At the supermarket, use the idea of the farmer’s market to save: buy only fresh produce in season, you’ll spend less and eat better. Keep in mind that the highest markups are on the shelves at chest level. Reach up or down for cheaper house or generic brands.

6. Clip coupons. Hint: call the toll-free numbers on product labels and tell the rep how much you use the product. Some will offer coupons, be sure to ask if they do not offer.

7. Have a specific goal for the money you save, such as a trip, a college fund, or a car, and deposit your savings in this account regularly.

8. If you have a tough time holding a credit card for emergencies only, make it impossible to impulse shop by freezing it in a bowl of water in your icebox.