Each year during the first week of January, many of us resolve to change something in our lives for the better. It may be something as simple as cleaning the garage or as difficult as losing weight or starting a savings account for retirement. And though we try, some of us are never able to follow through with the difficult commitments.

Well, how would you like some practical tips to tackle one of the difficult commitments? Say, finding the money to start the retirement savings account.

Tip # I: Control your spending – never let your spending control you.

This means, before you spend a dollar, asks yourself, do I really need this new item? And, will it enrich my life? If the answer to both is no, save your dollar.

Tip # 2:             Create a monthly budget and use it to guide your spending. For example, list all of your monthly income and deduct all of your regular monthly expenses. For those items that you may pay less frequently, such as auto insurance, divide the payment by the frequency at which you pay it (for example, 3, 6, or 12 months) and add the result to your monthly expense list. This provides a clear view of how much you must earn to meet your expenses.

Tip # 3:             Reevaluate your deductible on your homeowners and auto insurance. If the deductibles are $250.00, or $500.00, consider increasing your deductible to $1,000.00 or more and reduce the cost. Deposit the savings, over time, this can add up to substantial savings.

Tip # 4:             Save your income tax refund. You managed to live without that cash through the previous year, have it deposited directly into your savings account and leave it there.

Tip # 5:             Use phone cards for international or long distance calls. You will save all the surcharges for long distance on your phone bill, in addition to per minute charges. Note: when a $5.00 card expires, you will stop speaking. Block collect calls from your phone if necessary. Deposit your savings to your retirement account.

Tip # 6:             Eat fewer meals out and save the cash. Plan your meals and purchase your groceries in bulk if you have a large family. It costs less to prepare a meal at home than to purchase even fast foods.
 

Tip # 7:             Learn to negotiate for the best bargain. For example, interest rate on any credit purchases can be negotiated. Before you spend the borrowed money, be sure that you receive the lowest rate possible. In addition, if you are purchasing a house, automobile or appliances negotiate for the lowest price possible. Be firm, it’s your money. 

Tip # 8:             Do you really need all those premium channels on your cable bill? How many channels do you watch regularly? Cut back and save the cash for your retirement.

Tip # 9:             Do you expect a raise this year? Save it. You managed without that money last year, pretend you did not get a raise in 2006.

Tip # 10:           Car-pool and save on gas. Alternate with a friend or neighbor to drive the children to school. Deposit your savings into your retirement account.

Tip # 11:           Pay your bills on time and save the late fees.

Tip # 12:           Balance your checkbook every month. Be sure that the funds are in the account before you write the check. Save the banks’ overdraft charges.

Finally:            Follow these tips through 2007. Make this your New Year resolution.

For information on debt management contact:
AMALGAMATED CREDIT COUNSELORS, INC. 954-486-0830