How to Save Money without Changing Lifestyle

With the way the economy is suffering these days, everyone is looking for a way to save some money. However, many people are not interested in giving up the comforts that they’ve worked so hard to obtain and they don’t have to. There are many ways to save money without selling all your stuff and downgrading your home. If you have services such as cable, internet, car insurance, cell phones or even a gym membership; look on the internet and look for lower cost options. You will almost always find lower costs on the Internet if you take your time and look. You may also want to evaluate services to make sure that all of the features that come with it are needed. This way you can take unimportant features off to obtain a reduced price.

Do you own and use a credit card often? If so, then you might want to consider switching to a cash back credit card. This way, you’ll receive cash back on your purchases. However, be sure that you do your research because all cash back credit cards don’t support all purchases. For instance, some of them may give you cash back when you purchase groceries and gas, while some may give you cash back whenever you make online purchases or use their bill pay service. Be sure to choose a card that gives you the most options when it comes to cash back. The more money you can receive back, the more money you’ll have to save. It may not seem like a lot, but at the end of the year, you can certainly see how it adds up.

Clip coupons and use generic brand groceries. Some generic brands are actually no different than the others. You can swap out as you feel appropriate. By clipping coupons, you can save hundreds of dollars on groceries a year, especially if you’re consistent with it. Keep an eye out for sales. Even if you notice items on sale that you normally don’t use, it won’t hurt to buy and try it. However, you will save some on the purchase. Start taking a little money out of each check even if it’s only $10 a week. $10 a week for a year can give you $480 that you’ve saved. Regardless of how much you can spare to away each month, at the end of the year it still gives you more money than you started out with.

Edited: October 7th, 2011

How to Make More Money in Your Space Time

Everyone is feeling the pinch of the anemic economy. This fact does not lessen people’s desire to reach their goals. Whether it is plans for retirement or a big purchase, there are a few ways to supplement income during non work hours.

There are thousands of ways that a little extra income can be developed. Here are ten basic ideas to get started:

  1. Get a second job, this may be difficult, but any job will suit the need. This includes babysitting or pet sitting, getting a paper route, delivering phone books, mowing lawns, shoveling snow, or cleaning an office, will all add up over time.
  2. If you have the education and passion, become a tutor, substitute teacher, or referee for sporting events.
  3. Try mystery shopping. This is a unique position that covers a wide variety of commercial needs. It can also provide little perks like tickets to movies or dining opportunities. These jobs typically require a person to secretly evaluate an establishment, employee, or product.
  4. Take part in online surveys or focus groups. These people help to shape products and marketing tactics for large companies.
  5. Freelance writing. This can be anything from articles to blogging about a topic that is of personal interest.
  6. Arts and crafts are an excellent source for creative outlet. Sell the item once it has been completed, this includes photographs, drawings, baskets, quilts, cross stitch, any number of crafts or arts.
  7. Sell the unused items in the house on the internet.
  8. Use your vehicle for more than transportation. Lease the vehicle for driving other people or allow advertising agencies to put ads on it.
  9. The extra room in your house or an empty garage has the potential to generate additional income when rented out.
  10. Donate plasma or blood, as cliche as it sounds, a person’s life may be saved by doing it.

There are a number of different methods a person can use to make a little extra income. By combining a favorite hobby and a small amount of creativity there are excellent opportunities to be had.

Edited: August 8th, 2011

Different ways to invest your money

First off there is no right way to invest your money. Investing is an individual matter. Ask yourself, what kind of person am I when it comes to money? Keep in mind that all investing involves risk. Therefore, what are your risk parameters? It is this concept of risk that baffles most investors. In a general way, the greater the risk, the greater the return. That being the case, draw a line on a piece of paper. At one end put zero. At the other end put 100. Label this line “risk”. Now sit down and ponder for a while where to place yourself on this continuum. Once you’ve chosen your spot, let’s say 60 or 70, you will tend to be drawn to investments that are above average in risk.

Now if we examine investments starting at zero and moving to 100, we have several types. Near the zero point we would have savings accounts and CDs. The problem here is that with interest rates near zero, the return on this type of investment is near zilch.

Moving along our risk line we come to bonds. A bond is a loan. Again keeping near zero, the safest bonds are US government bonds. Here again, the return is small. Many investors look to corporate or municipal bonds for higher yields. The problem here is that they are rated from AAA to junk, with junk paying the highest interest rates. The degree of risk is dependent on the perceived ability of the corporation or municipal entity to pay back the bond at face value. The most striking example of what can happen is the Greek crisis. Investors either sold bonds or bid the price down to the point where bondholders now will receive only 50% of the face value.

Stocks are probably the most common type of investment. Here again, we have a risk continuum. First we have two major types of stocks, common and preferred. Preferred stocks usually pay a higher dividend and will be paid first in case of a default of the company. Now, we can move from “blue chip” stocks, those of our major international corporations, to the very end of the continuum to penny stocks. Here we are at 100. Most of these stocks are start- ups that just don’t make it. Penny stocks are like the movie “Rocky. Once and a while, against all odds, a few penny stocks will make it to the Big Board.

Within the stock category we have a variety of choices. Some may have access to 401k plans. The money is usually invested in mutual funds. Another variation is the IRA and Roth IRA. Both of these have a tax- deferred advantage. In recent years, newer variations of stock investments have become popular. Included are Index stocks such as SPYs, ETFs, and hedge funds. Hedge funds are different from mutual funds in that they can trade either long or short. Most mutual funds trade the long side only.

Precious metals such as gold are another kind of investment. Again you can run the continuum from coin collection to buying physical gold, to buying gold stocks, to buying gold ETFs. At 100 on the risk scale, you can buy gold futures and options.

Real estate, not including your home, is another solid form of investment. Many fortunes have been made buying apartment buildings, shopping centers and other forms of commercial property. If you have a mortgage you can deduct the interest. You can depreciate your property, which means that you can take a yearly tax deduction. You can deduct expenses, and capital improvements. You’ve heard this axiom many times but it is worth repeating. When it comes to real estate the key is location, location, location. If you have an eye for the right location and the right property within that location, then buy it.

Certain locations, while less desirable, may be eligible for a variety to federal and state grants to recondition the property. Here again, if you have the foresight to visualize what can be done with this kind of property, it may offer high returns. These choices should keep your mind busy. Just be sure that you take the time to research whatever type of investment you choose.

Edited: June 20th, 2011