Focus on One Bill at a Time

Take a look at all your bills, credit cards and loans.  Divide your balance by your monthly payment.  Focus on paying off the bill with the months to payoff ratio.  If you focus on paying off one bill at a time using this method, you will free up monthly cash flow quicker to payoff your other bills. For example:

Credit card #1 – balance $4,000/payment $350 = 11.43 months

Credit card #2 – balance $2500/payment $100 = 25 months

If you payoff credit card #1 first, you will free up $350 per month to add to credit card 2

New credit card #2 – balance $2500/payment $100 + $350=$450 = 5.56 months

Of course, this doesn’t take into account interest and amounts paid on credit card 2 while paying off credit card one, but you can see the point.

10-Open the Windows!

Take the opportunity to open your windows when the weather is nice.  Turn off the heat or air conditioner and enjoy filling your home with fresh air.  It will rejuvenate you and save you money on your utility bills.

9-Redirect Your Tax Refund

If you receive a tax refund each year, redirect those funds to your employer sponsored retirement account, individual IRA or your personal savings account.  All you need to do is increase your withholdings on your federal and state tax withholding form and then redirect that money each paycheck to automatically transfer to your savings.

8-Make More

If you would like to accomplish your debt payoff goal or savings goal sooner, you can jump start it by looking for opportunities to make more money.  Some ideas include working overtime, taking on a part time job or starting a side business.  You would be surprised at how many opportunities there are out there if you think about it.  For example, the number of seniors are growing and they need help with day to day things like yard maintenance, shopping and running errands.  Many dual income households also need help with these things.  Take a few minutes today and think of the possibilities!

7-Cash or Credit?

Should you pay with cash or credit?  If you can keep track of your spending and payoff your credit card at the end of each month, you may be leaving money on the table if you use cash to pay for purchases.  Many credit cards offer cash back or rewards for using their cards.  Upromise offers up to 5% cash back and additional amounts for online shopping if you use their credit card.  Discover also offers a cash back option.  If you are not disciplined enough to track your spending and payoff your card each month, the interest rates are high on these cards and you will lose your cash back savings to interest paid.

6- Just Sleep on It

It is easy to get caught up in the excitement of getting something new.  Decide what would be considered a “big purchase” for you.  It may be anything over $100 or anything over $1,000.  This amount will be different for everyone based on their budget and income level.  When you find yourself looking to purchase something in that range, take a night and “sleep on it”.  The next day or so you may find that you decide to move forward with the purchase, not purchase, wait or maybe do some more research before you buy.  Take this time for yourself to make sure it is something you really feel comfortable with.  There are very few times where an “emergency purchase” is required.

5-Turn Off the Lights

How many times have our parent’s told us to turn off the lights when we leave the room?  With rising energy costs, it makes even more sense to manage our electricity use more wisely.  When you leave a room, turn off the light.  Turn off energy wasters like computers, televisions, etc.  If there is a light on it, it is using electricity, even if it is turned off.  Adjust your thermostat, especially when you are away at work or out of town.  Take a walk through your house to see how many energy wasters you have.  I have a friend that unplugs everything in her house before she goes to work.  I tried this and it drove my husband and kids crazy since the cable box had to reset itself when they wanted to watch tv so this may be a little extreme but I promise you will save on your electric bill if you just make some minor adjustments.

4-Look at Your Phone Bill

Take a look at your phone bills.  Do you have a home phone and cell phone? Do you need both or can you get rid of the home phone?  Call your cell phone provider and ask them to analyze your account to see if there is a better plan that will meet your needs.  Even a small savings will add up over time and I’m sure you would rather keep that money in your pocket then pay out for services you don’t really need or use.

3-Give to a Charity

Money should flow like a river.  If you keep all that you have, you become like a stagnant pond.  Choose a charity or church and send them a donation today.  You will be surprised how giving will create opportunities for you that you didn’t know existed.

2-Check the Mail

When you get your mail today, take a close look at any bills that arrive.  Do you have a small credit card, collection or bill you could payoff today?   Before you add it to the stack of the other bills,  just pay it off.  Be done with it and then cut up or shred the credit card.  Now you have one less thing to worry about and one less bill in the mail next month.