Archive for the ‘Tips’ Category

Top 5 ways in which people waste money

These are some things not to do with your money. Here are some of the biggest money wasters that will absolutely cause you to fall short in the long run.

1. Lottery tickets. I do not care how many people claim this is worth it, lottery tickets will take your money in the long run. Unless you are that one in a million person to win it big, save  your money.

2. Eating out. Eating out is fun, once in awhile. But every day is a waste of money. You spend, on average, about four times as much eating out as you would at home. So do the math, and save some money by eating at home!

3. Smoking. Have you seen the price of cigarettes lately? Is it really worth it? Besides, by kicking this habit, you are getting a leg up on your health, which will save you money on healthcare down the road. This habit is definitely a financial disaster in a box.

4. Impulse buying. Impulse buying is not the way to build savings or financial freedom. Look back on all the worthless impulse purchases you have made over the last five years. If you add these together, you could probably buy a hot-dog stand, which you could subsequently use to make potentially more money than you currently make at your job!

5. Gambling. Yes, gambling is fun, but if you are gambling for the sole reasons of bringing home some money, than you will most likely be out of luck. Again, instead of gambling, save up some money and invest in  your own business! You have better odds that your business will succeed anyway than you do at the Casino, and you can mix drinks right at home!

Saving money on your electric bill

The electric bill is a necessary bill. After all, it’s tough to live without electricity. It runs your appliances, keeps your lights on, keeps the TV going… it is needless to say that electricity is vital to our modern way of life. In fact, your job is probably one that deals with computers, and without electricity, you might not even have that job. But, it is not the cheapest thing either. In fact, depending on where you live, your electric bill probably lies somewhere between the “expensive”  and “Oh my gosh, why is it THAT expensive” categories. But, don’t worry, because electricity doesn’t have to be so expensive. No, electricity can be affordable if you know how to save money on it.

First, make sure that unused lights are turned off. During the day, open up your windows. Utilize the sunlight so that you can turn off your kitchen, dining room, and bedroom lights. Also, change out your light bulbs. Stop using incandescent light bulbs, and start using fluorescent,  or even  better, LED light bulbs. These light bulbs use a fraction of the electricity that the older incandescent bulbs do, so you will definitely notice a different just by changing them out. Also, keep your computer turned off when you are not using it. Your computer burns more electricity than almost any other appliance in your home, and you will notice a big difference if you turn it off when it is not being used. The same goes for your other appliances.

Also, make sure to unplug things like cell phone chargers. Even if the cell phone is not plugged in, the charger still uses a small amount of power if left plugged in. Things like this should be unplugged to maximize your hard earned money when it comes to the electric bill.

Buying a home vs. renting a home

Many people deal with the big question when it comes to housing… should I buy? Or should I rent? Both have their advantages, and both have their hard points. But either way, the major point is that you are going to have to have a place to live, so you might as well live in the place that offers the most benefits for you, right?

Buying

Buying a home can do a lot of good things for you. You can build up equity, so in a way, your monthly payments are just payments you are making to yourself because you are building up equity in your home. So, you really cannot go wrong with buying. Now, there are some cases in which buying might not be the best for you. For one, you cannot always buy a house if your credit is not good.  Second, you cannot really own a home if you do not have a good job, or some other steady source of income. If you fall behind on house payments, the results are neither good on your credit nor on your housing options. It can lead to foreclosure and a total loss of your credit.

Renting

Renting a home is the obvious alternative to buying. Renting a home though, does not have a lot of the benefits of buying. For one, your monthly payments are spent on your housing. It is money you are not investing in your future, but money you are spending NOW. Your payments do not increase your wealth as they do if you buy a home, they go to make your landlord rich. Also, you can get evicted from a rental home faster than you can when you buy. It is easier to avoid foreclosure than it is to avoid eviction, mostly because in your own home you can have pets or whatever you want, but in a rental you have to abide by certain rules.