|
|
24 Money Saving Tips to Better Credit - Buying a Home
|
|
|
There are many ways to save money. Saving money is highly important for several reasons: looking to buy a home – having money in the bank gets you a better loan program. Buying a car – having money allows for a better car with better financing when you can put money down on a car. Having money allows you to payoff more debt which will increase your credit scores. This list is not everything, but hopefully you will get some additional ideas from this list in case you are already doing everything on this list.
1. Replace your light bulbs with energy efficient light bulbs, or green bulbs. I know, they are expensive to purchase, but once you have them they last forever and they really do save you money on your electricity bill. Also, you will have to get used to the different light emitting from them as they are a little different from a regular light bulb. But, make the change and it will be worth it.
2. Buy appliances that have the “Energy Star” sticker on it. These appliances are rated by the Environmental Protection Agency to be energy efficient because they use less electricity than appliances without the star. Typically, these appliances use at least 10% less electricity. This adds up over time.
3. Get to know your neighbors. Chances are, if you are just starting out on your own you live next to folks who have been on their own a little longer. They probably have something you might need in a pinch so that you do not have to go out and purchase a brand new back yard blower for the one time you might need it, or use it. Ask your neighbor to watch your pets for a small fee versus taking them to a pet hotel where you pay top dollar to have your pets watched in an unfamiliar place.
4. Get to know your library. This might sound awful, but your local library probably has a great selection of music and DVD’s. Go there to rent a copy of your favorite movie – it is always cheaper. They also probably have your favorite magazine on the rack so you do not have to renew the next time your subscription runs out.
5. Do not buy things just because they are a great deal. This might mean that you have to stay away from discount stores like Costco and Sam’s Club. Only buy something if you need it, and then only buy what you need. Do you really need those extra 15 razors right now to get the free can of shaving cream?
6. Painful and eye opening – track your expenses and notice your spending habits. Do this over a period of time and you will see things you probably have not seen before. How much do you really spend at Starbucks?
7. Unless you are already good at paying your credit card off every month – stop using it until it is paid in full. You do not need to be paying your credit card companies interest. If you have missed any payments to them you could be paying them up to 29% interest. If you do not know what your credit card interest rate is, call and find out or check you next statement. If you think it is too high, call the company and ask for a lower interest rate or you will move the balance to a lower rate card. You never know what they will do.
8. Pay cash. Stop using your credit cards. Put them away. Do not cancel them, but put them away. By paying cash you will gain an awareness of what you are spending your money on.
9. Develop a weekly and monthly budget. Write down all of your bills. Then write down what you need to spend money on like food and toiletries. You want to compare what you have to spend money on to what you make after taxes (the money you get paid after taxes).
10. Turn down the heat in the winter and turn up the air conditioning in the summer. By changing your settings just a few degrees you will save a few bucks each month which over the course of a year could add up to hundreds of dollars. If you just have to have it warm in the winter and cold in the summer in your home, then change your settings when you are not there.
11. Consider staying home for day care. Do you have kids? If there are two of you do you both have to work? Take some time to evaluate the expense of day care – car expenses, gas, time, cost of the day care center, packing lunches etc. You might be surprised that day care costs more then you expected. It might be cost effective to have one of you stay at home to care for your little peeps.
12. You might take a second job, but make sure you pay attention to your tax bracket. You might end up getting paid more, but paying more in a higher tax bracket. If this happens you might want to evaluate is it worth your additional time out of the home for the little return on your time.
13. Shop at second hand stores. There are great deals on clothing at these stores. Especially for kids clothes. Kids are only in their clothes a short while compared to us adults so why spend top dollar for their clothes. You can save a ton of money shopping at these types of stores.
14. Shop at garage sales. Again, tremendous deals for kids clothes and toys. It is amazing what you can find on an early Saturday morning trek around your neighborhood.
15. Unplug your computer at night. For that matter, unplug your other home appliances before you go to bed to save on electricity. Although it will only save a little bit of electricity, over time it will add up.
16. Go down to one phone. If you have a cell phone, why have a land line? Maybe it is bundled with your cable and internet access at home. It might be time to reconsider your cable situation. What do you really need versus getting out of debt?
17. If you must go to the theater instead of waiting for that movie to come out on DVD, then go to the matinee instead of the Friday night movie. If you throw in food with you movie, go to lunch ahead of time. You will save money by going to lunch than buying that $6.00 bucket of popcorn and $4.00 coke. Plus lunch out is typically a cheaper meal to eat out than dinner.
18. Pay attention to your credit report. You should check your credit report at least every 6 months if not quarterly. You can check if for free annually at annualcreditreport.com. it is a good idea to check your credit report to look for mistakes and fraudulent activity.
19. Check your insurance rates. It is always a great idea to check your premium rates at least annually. Keep your insurance agent honest. Also, ask about a higher deductible. You also might not need collision insurance on your older vehicle, especially if it is paid off. Call your insurance agent for a policy review to see where you can save some money.
20. Shopping for food at off hours. Never shop for tonight’s dinner when you are hungry. We tend to over buy when we are hungry. Go shopping when it is not time to eat. Also, purchase the generic brands instead of the brand names. Sorry, the generic Mac & Cheese is just as good as the Kraft Mac & Cheese. Also, purchase the generic
medicine instead of the name brand, ibuprofen is ibuprofen.
21. Use coupons and cash in your rebates – every penny counts.
22. Are you thinking about getting a new pet dog? If so, get it from the animal shelter. Do you really need to shell out $400 for a new black lab pure bread puppy? Maybe, but is little Johnny really going to care about the pedigree of his childhood best friend?
23. Keep your receipts and take stuff back that you do not want, or cannot use. It is really amazing what can be returned or exchanged and what that can add up to.
24. Last but not least – remember everything is negotiable. If you do not like your interest rate or fees being charged, ask for something different.
Obviously this list is not everything; rather, this list is designed to show you practical things to do to save money. This list will hopefully inspire other ways that you might think of to save money just by reading this list.
Written by GetPreQualified.com editorial staff. This Article is designed to be of general interest and should not be considered professional advice. The specific information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your legal adviser.
|
|
