Money Saving Tips

How many of you are struggling to manage your household on only one income or a very low budget? We could all do with ways and means on how to save money on household bills and have some money left over at the end of each month, to either pay off debt, save or invest, or blow on a treat for ourselves.

Before we can start to save money we need to draw up a detailed budget, listing our income and all of our our outgoings – this is key to managing your household budget. Try and be as accurate as possible and include even the smallest of items. If you are left with a minus figure then you need to dig deeper and see what areas you may be able to cut back in.

Key areas to cut back in are food, entertainment, clothing and utilities but there are other places too. How many times do you draw money from an ATM for example? Some banks waive fees on other bank´s customers drawing from their ATMs but a lot don´t. These charges can soon mount up. If you have several outstanding debts, try and consolidate them and getter a better deal on the monthly payments.

Ways to save money in the home are to turn your thermostats down a notch, turn off lights if you are not in that room, stop leaving electrical goods on standby, utilise your oven and cook several things at once, check that your loft area is fully insulated as well, take showers instead of baths.

Also limit the use of your car. Try walking to places if at all feasible. This will get you healthy as well. If you do need to use the car try and do several jobs on one journey. Try checking out some of the deals on public transport and see how they compare to the price of using your car.  These are just a few money saving tips to help you manage your budget.

Try and make these practices routine in your everyday living so that you automatically start thinking all the time of cost cutting and you will start to notice that managing your budget becomes easier in a relatively short space of time.

I run my own catering business in Spain and have found my business drop off a lot due to the economical crisis the world is experiencing. I have had to adopt a frugal lifestyle simply because I do not have the same income as I used to.

With regards to shopping and eating for less I find the way that works for me is to sit down and write a list of menus for the week, including any snacks and drinks. Then write a full list of ingredients, checking against your store cupboard. Try and find menus that utilize lots of similar ingredients so you don´t have to buy specialist foods that you won´t be needing again. Then go straight to the supermarket and stick to your list. Do not, I repeat, do not stray from the list. Do not be tempted by any special offers unless they are items already on your list and can be stored or stockpiled in your store cupboard for a period of time. Remember a bargain is only a bargain if it is something you need.

Tips That Can Save You Money

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Obviously, if you have the opportunity to get a loan based on your good credit score, then by all means, take advantage of that opportunity. You will most likely have lending companies competing for your business and can negotiate lower rates because your credit history gives you bargaining power.

However, for those of us with poor credit histories and no bargaining power, it’s important to be aware of all the credit options available to us. Most, lenders will require collateral. This means they’ll ask us to put up something of value – that we own – as security for the loan. It’s a measure they take to ensure they’ll get their money back one way or another. Either they receive full payment for the loan, or they take our collateral.

So let’s say you have something of value and that “something” is a car. You own the title for that vehicle and in order to get some quick cash, you approach a title loan lender to get a loan, using your title as collateral. Here’s what you want to be sure you find out beforehand:

  • Term of the Loan – The bottom line is, how long do you have to pay off this loan? One type of title loan to be avoided is the Title Pawn loan. A Title Pawn is usually a 30 day loan with a balloon payment at the end. Meaning you have 30 days until the full amount of the loan, including interest, is due. This is almost impossible to pay back and can lead to increased debt. So stay away from this type of title loan!
  • Prepayment Penalty – Let’s face it, loan companies want your interest payments. That’s how they make money. To ensure they make a profit off of your loan, they discourage early repayment by charging you a penalty for paying your loan off early. So before you sign the loan, be sure to ask your loan officer if there is a prepayment penalty.
  • How Interest is Accrued – Most loan companies calculate loans so that the initial payments are applied primarily to interest, with a very small portion of those payments going toward principal. The closer a borrower gets to the end of the term of their loan, the more their payment is applied to principal instead of interest. This is a common practice among moneylenders, and not at all exclusive to title loan lenders. However, there are varying ways of determining interest. For example, is the interest amount determined by the remaining balance of the loan, or is it determined by the full amount of the loan and then divided up into the monthly payment? A loan that only charges interest on the remaining balance of the loan will save you money in the long run. Because each time you make a payment toward principal, the balance of your loan decreases, therefore lowering the amount of interest due on that loan.

Unfortunately, most people with bad credit end up paying more for their loans than people with good credit. But utilizing these tips can keep borrowers from paying more than necessary.