Category Archives for "Save Money"

5 Frugal Destinations for the Traveler on a Shoestring

vacation budget tips

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Traveling can be very expensive, especially certain destinations, luckily there are a ton of frugal travel destinations worldwide. Destinations where you can really enjoy the food and atmosphere, mingle with the locals, and not break the bank. Many popular tourist destinations overcharge because they can get away with it. Not only that, but some areas have basically become so overcrowded with tourists, it can feel like not traveling at all. Of course, the most expensive cost of most international traveling is the cost of airfare, but once you get there you will certainly enjoy these 5 frugal destinations.

Thailand
With amazing food, an enjoyable tropical climate, and great beaches, Thailand is an obvious choice. Not only can you enjoy major metropolitan cities, but there are lots of islands to choose from as well. Thailand can be an extremely cheap place to visit, lodging, food and activities are all well below average. With an extensive bus system, it is cheap to get around to visit other regions. A great mixture between large cities, beaches, and mountains with natural beauty.

Morocco
Their currency the dirham has been devalued, which leaves everything more affordable right now. Morocco has delicious food, a unique landscape, as well as art and history. There are amazing Roman and Islamic sites to see and will certainly be enjoyed by all ages. Not only that, but Morocco has some great beaches to relax at.

Mexico
Mexico is a very popular tourist destinations among people from the United States and Europe, it is not surprise. Mexico has great weather, amazing food, and some of the friendliest people on earth. Whether you like the beach and party atmosphere or visiting colonial architecture. Mexico even offers tall mountains and large cities if that is more of your interest. For many years this has been a favorite travel destination of many, once you get away from the touristy areas it becomes a very cheap vacation.

Ecuador
Most people probably do not think of going to Ecuador for a vacation, but it certainly is a nice place to be visited on the cheap. It is very easy to find a hotel for around $15, and a delicious meal for a few dollars just about anywhere. The country is very inexpensive and easy to explore, whether you like colonial style architecture or rain-forests. A beautiful destination with natural beauty and a great climate.

Greece
Greece has so much history, great food, and of course beautiful beaches. Right now it is cheap to visit because some people are putting off vacations to Greece. This is because they believe they will leave the Euro currency, which will lower prices even more.

There are plenty of amazing vacation destinations around the world that will not break the bank. Many of them are very popular and well known, others are not as often thought about as tourist destinations. Keep in mind airfare is going to be the major cost for any international trip. The nice thing is, once you arrive to your destination, the day to day cost may be the same or less than at home.

Ronnie Haverford writes about travel, finance & more at http://travelinsurance.org.

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10 Easy Steps to Money-Saving Shopping

10 easy steps to money-saving shopping

 

By: Eduwardo Ramirez

Shopping can be an expensive proposition, whether it be clothes, food, or electronics. Taking a few simple steps can save you a lot of money. Luckily, once learned, it will be very easy to implement these steps without thinking.

Used
If you are buying clothes, or household goods, buying at thrift shops can be helpful. This is especially true for children s clothes or items. Not only that, the money you spend at a thrift shop usually goes to a good cause.

Ethnic Stores
When buying fruits and vegetables, or exotic items, sometimes an ethnic store can be beneficial. They offer great deals, and great quality items. Since they have low overhead they can have lower prices than large chains.

Farmers Markets
Here is a tip to save money shopping for fruits and vegetables. Farmers markets generally sell local, fresh, and often organic produce. If you can show up shortly before they close up, you can get great deals. They do not want to pack and carry the items home.

Online
For electronics, and big ticket items this is especially true. Shopping online not only can get the best prices, but often it is an easy way to dodge huge sales tax bills. This is not always true, so be aware. Most retailers offer some sort of free or discount shipping, especially on m,ore expensive items.

Stock Up
When there are huge sales, especially on staples such as shampoo or toilet paper, stock up. This will do two things, save money of course, and make it more convenient on subsequent trips to the store. Sometimes you can get soap, or other household goods for steep discounts. This is easier if you have the storage space obviously, but even small items should be okay for most people to stock up on.

Coupons
Using coupons, especially ones that can be doubled, or even tripled are a solid way to save money. Not only that, but sometimes they can be combined with store coupons or sales, to enable you to get free stuff. Some stores have double coupon days certain days of the week, so watch out.

Flyers
Most grocery chains send out flyers on a weekly basis. They usually have varying sales on a lot of staples such as meat and fruits. If possible, pick the best deals and go to each store separately. Not only that, but stocking up on great deals for meat, and freezing can save even more money and time.

Online Classifieds
Many online classifieds have a section where you can buy and sell items. Buying things like appliances or sports equipment can save tons of money. This is almost always from individuals, so be sure to fully inspect the equipment.

Credit Cards
Credit cards, especially store cards sometimes offer huge savings. Using a store card for certain department store can almost always result in a good discount. Watch out for days where using the store card can save even more. Great if you have a store you frequent.

Shop the Edges
The best place to shop the grocery store is the edges. That is where the healthy staples are. Not only that, but that is where the cheaper items are. The prepackaged stuff is in the middle.

Once you implement savings strategies for smarter shopping you will save money. After a while you will not even need to think about it.

Eduwardo Ramirez writes about nutrition, shopping & flower delivery.

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6 Surprising Ways to Upgrade your Spending Strategies

6 Surprising Ways to Upgrade your Spending Strategies

Do you ever wish that you could save more and spend less?

One of the best ways to improve your budget is to look for ways that you can banish certain expenses from your routine. For instance, if you’ve got a subscription that you never use that’s eating your cash every month, canceling it will mean that you have more money to spend elsewhere.

However, there’s another side to budgeting too, and that involves making sure that you have the right strategy in place when you need to spend. Here, we’re going to look for ways that you can become a savvy spender and save more in the process.

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Selecting a Financial Coach

financial coach

By: Robert Gignac – author of Rich is a State of Mind

Among successful business owners (and Americans in general…), there is a belief that people should be able to handle their own personal finances, make their own decisions, and implement them by themselves.

Do I really need a financial coach?

When it comes to personal finance, why wouldn’t we call a coach? Someone who understands your problems and issues, has seen it before, and can recommend a course of action. All the best athletes on the planet have coaches. Why? Discipline, encouragement, instruction, feedback, teamwork, dedication, and they help the athlete maintain their focus. A good financial coach does the same for their clients.

The key component that a financial coach brings to the table for a client is objectivity – helping a client understand where they are financially. Once that is done, their ability to educate and manage a client’s expectations aids in charting a course of action to build a better, more financially secure future.

How does one hire a good financial coach?

I don’t believe there is a set answer for this, but here are three questions I would suggest you ask and feel comfortable with the answers you receive before you consider hiring anyone.

What are your qualifications?

Plenty of people offer financial advice, and many call themselves financial coaches. These range from mutual fund salespeople, stockbrokers, insurance agents, tax accountants, or bank and trust company employees. Financial coaching requires experience and a sound technical understanding of investment options, insurance, taxes, estates, wills, and trusts to name a few.

Ask what type of training they have taken and which professional designations they hold. Credentials alone don’t indicate competence, but they demonstrate a commitment to the profession. Common credentials are: CFP – Certified Financial Planner, CLU – Chartered Life Underwriter, CFA – Certified Financial Analyst, ChFC – Chartered Financial Consultant, CIC – Chartered Investment Counselor, PFS – Personal Financial Specialist. For a complete list with descriptions, I will refer you to the Financial Planners Standards Council website at: www.fpsccanada.org.

The financial services sector is known for a relatively high attrition rate. As such, experience is an important consideration. Seniority alone should not be the deciding factor, but working with someone who has experienced the euphoria of bull markets and despair of the bear can help give you the proper perspective in dealing with the psychology of the market. Helping a client manage their expectations through market cycles is one of the most important roles of a financial coach.

How do you get paid? 

Coaches can earn compensation from fees billed to you or from commissions from products sold to you. Some feel there is an advantage to ‘fee only’ because there is no pressure to sell you anything. Fees can range from an hourly rate for work done, a flat fee to create an individual financial plan, or a fee based on the percentage of assets managed. Fee-only coaches may not have any direct motivation (i.e.: commissions) to help you implement the plan. Having a plan and not implementing it is equivalent to having no plan at all.

Many people feel commissions are bad and lead coaches to push products. Good coaches may recommend a course of action or a product; they don’t urge or pressure clients to buy. If you only focus on cost or commissions, rather than focusing on the value of the recommendation you may short-change yourself. A more important measure should be how your plan functions and whether or not you are achieving the benefits/results you set out to achieve.

Good coaches are upfront about their fees and all costs associated with any investment you make. If you don’t understand the fees, ask. Request full disclosure and ensure they provide it. If you still have questions, ask again. If they aren’t prepared to fully disclose and explain their costs, that should bother you.

How do they handle their non-expert areas? 

I don’t feel that a coach can be 100% versed in every aspect of the financial arena, so the coach’s business relationships are key. What access does the coach have to tax specialists, lawyers, business accountants, insurance specialists, etc? What is the cost to use these experts? Sometimes if you are dealing with a coach in a large integrated firm, this expertise is all housed in one place and it is part of a blended fee.

Hiring a financial coach can be a scary thought for many people. In order to build a complete and comprehensive plan, a coach has to become familiar with your entire financial situation. You have to be comfortable and willing to share personal information with them. They have to understand your dreams and goals. Discussing that much personal information with a ‘stranger’ can scare people. Don’t be intimidated. Financial coaches aren’t there to pass judgment, they exist to help you attain the goals you want for yourself and your family. You are responsible for your part in the planning process; nobody will care more about your money than you will. Peace of mind with the people who are helping you in the process plays a major factor.

Robert Gignac, owner of Taynac & Associates, speaks at financial industry events acrossNorth Americaon personal and financial development, motivation, and leadership.  This article is based on his International best-seller Rich is a State of Mind. For book reviews, video clips, articles and more – check out: RichIsAStateOfMind.com. Copyright 2012 – Taynac & Associates

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A Guide To Holiday Cost Cutting

A Guide to Holiday Cost Cutting

There’s no doubt that many of us love to travel and holiday. Whether it’s taking a warm beach vacation, visiting the snow, hiking mountains or becoming immersed in culture, it’s a great feeling being able to take a break and relax. Most of us wish we could take holidays more often, but the costs of going on heading away is what prevents many of us from doing so. Whilst going on holidays is no cheap activity, there are always ways around spending big and still having a good time. Here, we explore how to cut costs during your holiday whilst still making the most of it.

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Comparing Do-It-Yourself Debt Reduction Methods

Comparing Do-It-Yourself Debt Reduction Methods

By: Connie Solidad

When you have too much unsecured credit card debt and your bills start to get out of control, you need to make a plan to reduce your credit card debt quickly and efficiently. While paying according to the minimum payment schedules set by your creditors will maintain your credit rating, it doesn’t actually do much in the way of reducing your debt burden quickly. After all, payment schedules are designed to maximize the credit card companies profits through the interest paid on your debt.

With this in mind, you have to make a plan to pay back what you owe faster than the minimum payment schedule designates. Paying off your debt faster reduces the amount of interest you end up paying to your creditors which saves you money over the long-term. In addition, as you reduce the debts, you also reduce the amount of money you have to put towards credit card payments each month. This provides relief for your budget so you don’t have to do a juggling act to keep up with your bill payments.

So you know you need to pay more than the minimum amounts due, but how? As you make a plan to reduce your debt, you generally want to use one of two methods: the debt meltdown technique or the debt roll-up technique. These are more effective than just putting a little more money on all your debt payments simultaneously, because it focuses your efforts on eliminating one credit card debt at a time. You get out of debt faster and save money on interest payments.

In both plans, you need to streamline your budget to free up as much money as possible for reducing your debt. Cut out any discretionary expenses, which are things you buy every month but don’t necessarily need. Also look for ways to reduce flexible expenses, such as gas and food. You may need to start taking your lunch to work, coupon for your grocery shopping, arrange a carpool with other moms for kids’ activities, or commit to eating more dinners at home with the family.

Once you have the money freed up, you can start reducing your debt. Pay the minimum payments on all your obligations, but put any extra money you freed up to paying off one debt at a time. With the debt meltdown technique, you focus your money on the debt with the highest interest rate first. This is the most financially efficient method, because the highest interest rate debt grows the fastest. Eliminating it first saves you money. Once you pay off the highest interest rate debt, focus your extra funds to paying off the debt with the next highest interest rate. Continue until you are debt-free or feel you’ve gotten your debt back to a manageable level.

Of course many consumers struggle with the debt meltdown method, because their highest interest rate debt may also be their largest debt. No matter how much money you try to free up in your budget, paying this debt back could take years and won’t provide the financial relief you need now. In this case, the debt roll-up technique is better because it allows you to build up momentum to tackle your largest debts.

You still pay the minimums on all your obligations, but you focus all of your extra cash flow on the debt with the lowest balance first. Once you pay this smallest debt off, you won’t owe anything each month on that zero balance credit card. All of the money you used to put towards that bill can be rolled into the money you are using to pay your debts off. This gives you more money to tackle your next smallest debt. You build momentum like a snowball rolling down a hill, which is why this method is also called the snowball method.

If you assess your budget and neither method will allow you to pay off your debt quickly on your own, don’t wait to seek help. Contact a certified credit counselor to discuss other options available for debt relief. They will evaluate your debts and financial situation to help determine the best solution to get you out of debt.

More from Financial Bin contributor Connie Solidad: Do Debt Management Plans Work for More than Just Credit Card Debt?

Connie Solidad has been writing about finances and debt consolidation for years. She’s an expert in the industry and writes about management of personal debt, ways to pay off credit card debt and credit counseling options and resources. When Connie is not working, she loves playing with her two dogs in Tampa, Florida. To learn more about debt management refer to ConsolidatedCredit.org

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Why You Should Kick Start Your Savings Plan Early

kick start your savings plan

By: Sam Payn

The idea of financial stability during your old age is something that leads us back to the basic importance of savings. Saving money is always a good habit to embrace any day, but the earlier you start it the better. By starting a savings plan early, you will not only be saving more money for down the road. You will be doing yourself a favor and be able to take advantage of the following:

1. Steady retirement benefits: With the change in lifestyle, many people now prefer to have fun and take pleasure in the joys of life after retirement instead of just sitting around. By starting early, you can have a comfortable amount of money saved to fulfill your wishes when you actually have the time.

2. Covers medical costs minus debts: Improvements in medical science have helped to increase the life expectancy of people to a great extent. However, with increase in the life expectancy rate comes a considerable increase in the costs of treatment for various diseases and health issues related to old age. If you have a considerable amount of savings to back you up during those crisis periods, you can save yourself from the claws of debt.

3. Secured education policy for kids: If you start saving early, you can save a sufficient amount of money to provide for your children’s education. They can study in the best institutions and receive the best opportunities that you had planned for them. The best part is you do not have to opt for a student loan to fulfill such plans.

4. Children’s marriage plans assured: You would like to make your kid’s wedding day the best day by giving him or her the best possible comforts. It can be a lavish affair or a moderate one depending on your savings. Thus, if you can save a good amount of money, you can present them the best gift of their life.

5. Emergency needs: We never know when we might face an emergence situation like a car accident or home repair. Such situations need your immediate attention so you need to be prepared. If you think of quick fix solutions like payday loans, they can work. However, you will be loaded with high interest. That said, if you are prudent enough to save for an emergency, you can face the crisis confidently.

6. Short-term needs: Even if you have a stable job with a good salary, it may not always be enough to fulfill your short-term dreams. It may be a car or an apartment that you would have dreamt of buying. It may even be some short-term investments. However, if you do not have a well-planned budget, you may face a financial crisis during the end of the month and may not be able to make them come true. However, if you have a backup savings plan, the problem can be easily sorted out. Thus, the earlier you start saving money, the more you will have to spend on your short-term needs.

If you want to save for your future and have a financially-secure life. it is better to start early. It gives you ample time to manage your resources well and save for the rainy days. By starting to save early, you can also stay away from debt and your savings fund would sufficiently meet all your financial needs.

Sam Payn is a financial blogger consultant with EasyFinance.com. He helps people to tackle their financial problems by helping them with tips on budgeting and savings in order to make their life easier.

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Order and Optimism in Your Financial Life

financial order and optimism

In a previous article, I stated that to gain a sense of control over spending and especially over credit card debt, people must know how much they owe on each of their cards.  And they should put this in writing.  It’s important to grab a pen and paper or create a spreadsheet and list these balances.  Specifically, the balances should appear from smallest to largest.  Why make this list?  And why from smallest to largest?  The short answer is Order and Optimism.  The “long” answer (well, not so long) follows.

Order: At times, when people carry credit card debt, they practice what I call “The Ostrich Method.”  You may have seen an ostrich stick its head in the sand.  Makes it difficult to see, right?  We humans sometimes do the same thing (figuratively) when we don’t want to face the truth about something…like credit card debt.  “If I ignore it, it will go away, yes?”  No!  “The Ostrich Method” simply leads to other bad habits, including increased ignorance and a lack of organization.

By opening all of your latest statements and listing the current balances, you  establish a sense of order.  You take the guesswork out of the picture and replace it with knowledge.  This empowers you!  You see exactly what you are facing (what you owe; the minimum payment due; the interest rate; etc).  This is good!  Instead of an estimated balance, you now have an exact balance.  And you’ve condensed this information from several separate statements to one list.  You’ve gone from scattered to succinct; a little shift makes a BIG difference.

Optimism: Now, I draw your attention to the fact that you’ve listed the balances from smallest to largest.  “Why is that important?” you might ask.  Well, let me start by referring to a line in my book, Master The Card: Say Goodbye to Credit Card Debt…Forever!: “Money is as much psychological as it is material.”  It’s natural to get overwhelmed by credit card debt.  The amount does not matter.  $1,000….$100,000…more…less.  If you are worried about how you will pay off the debt, then you are overwhelmed.  It weighs on you: thus, the psychological part of the quote.  So by listing your balances from smallest to largest, you can train your eye (and ultimately your mind) on the card with the lowest balance.

For example, say you have balances on four credit cards and you list them as follows:

Card A:    $600.00

Card B:   $1,050.00

Card C:   $1,500.00

Card D:   $2,700.00

Instead of adding up the grand total on the four cards or even looking at any combination of the cards, which can be scary, focus your attention on Card A.  Which seems more manageable: Card A or the other cards?  Card A, of course.  And it’s very likely that you’ll say to yourself, “$600?  I can pay that off pretty quickly.”  Great!  Now do it.  Focus your attention and as much money as you can on paying off that card ASAP, while paying the minimum on the other cards.  By doing this, Card A is paid off in short order AND you gain a sense of victory, an important psychological component when getting out of debt.  You’re now optimistic and know that in due time, you’ll pay off the other cards in the same fashion.

Order and optimism are essential when freeing ourselves from credit card debt.  They were at the heart of my liberation process.  Order and optimism give us a plan and hope.  With this knowhow and confidence, we can overcome any obstacle.

MUST READ: Joe Paretta’s article, Do You Know What You Owe?

Joe Paretta is an author, speaker, and coach. His first book, Master The Card: Say Goodbye to Credit Card Debt…Forever! (Balboa Press, 2010), is one which he considers “a labor of love.”  After accumulating $12,000 in credit card debt, Joe changed the way he thought about and used money and credit cards. As a result, he has been free from credit card debt for many years and coaches others to freedom, too. To learn more about Joe or to purchase his book, visit his website www.joeparetta.com.

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Five Stages of Debt: Which Stage Are You In?

debt stages

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By: Allison Martin

Debt Stage 1: Denial

In this fast-paced world, many are moving at such a rapid manner that they forget to pay attention to the minor details of major items, including outstanding debt. The average consumer at this stage either fails to calculate how much debt they are in or turn a blind eye (as if it doesn’t exist). Either way, this is a dangerous position to be in. The longer the debtor denies or ignores the issue, the more rapidly the debt will increase (as a result of interest or the minimum payment trap).

Debt Stage 2: Realization

At this stage, the debtor has decided to face the music and come to terms with the situation at hand. They have taken the time out to list the details of each debt and analyze the situation. The list includes but is not limited to: creditor’s name, balance interest rate, minimum payment, and balance. Realizing that a problem exists is not necessarily negative in nature because the debtor is now at a crossroad. They must make a choice to rectify the situation or continue to let it spiral out of control. Hopefully, the debtor will make the correct choice and select the first option.

Debt Stage 3: Depression

If the debtor owes an excessive amount of money to a creditor(s), it is expected that they will experience some sort of depression. (Some skip this stage depending on personality type). A lot of debt incurred in the United States is a result of the “gotta have it” mentality. It has been ingrained in many minds that it is okay to finance items that are desperately desired, even if they will cost way too much money in the long-run. If you don’t agree, take a glance at all the loan and credit card products that exist around us and you will think again. Depression typically sets in when the debtor realizes that they engaged in impulse spending or purchased items that they couldn’t afford.

Debt Stage 4: Perseverance

The debtor will experience this stage if they decide to tackle their outstanding debts. At first, progress will be gradual since the debt repayment process can be lengthy and tedious. However, once the debtor notices just how much they have reduced the outstanding balances, they will have the desire to press on and remain persistent in the debt repayment process until everything is paid off. This stage can be empowering to many because it demonstrates the rewards that result from persistence and determination with anything that an individual does in life, whether or not it involves personal finance.

Debt Stage 5: Bliss

Once all debt is eliminated, the former debtor will more than likely be filled with joy as if he or she is on top of the world. After all, the debt repayment process can be an emotional roller-coaster for many because it takes a lot out of a person. Making sacrifices along with changes in spending habits and personal finance lifestyles as a whole in order to repay outstanding obligations is hard work. However, it pays off in the long run when the individual is released from bondage with the creditor(s), financially free, and has resources to explore the various elements that life has to offer without having to borrow from anyone.

Which debt stage are you in?

Allison is a Financial Coach who educates individuals from a Christian perspective on financial goal-setting, budgeting, saving, debt management, and wealth building. Make sure to check her out at FinancialCoachingForYou.com

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