Tips to keep more money so you can use it wisely
Money Girl
257 MG 5 Clever Ways to Save More Money
Building a portfolio with Fidelity Basket Profolios is kinda like making a sandwich. It's as simple as picking your stocks and ETFs, sort of like your meats and other topics. And managing it as one big juicy investment. That's pretty good. Learn more at Fidelity.com/baskets. Investing involves risks including risk of loss, Fidelity Brokers Services LLC, Member NYSC SIPC. Calling all future shapers and dream chasers. MSU Denver is a place that meets your pace. We have drive and dedication to help you reach your destination. We're a school that works for you and with you at every step. Online and on campus learn with faculty and peers to forge a career. Tomorrow can't wait, your next starts now. We are the changemakers. MSU Denver. Hi friends, this is Laura Adams, and you're listening to the Money Girl Podcast. For many people, the recession was a loud wake-up call to tighten their belts, cut back on unnecessary expenses, and save more. But now that the economy is slowly regaining strength, consumer spending is steadily rising, and savings rates are dwindling. While there's nothing wrong with spending, when you can afford it, don't backslide and neglect your long-term financial goals, like building an emergency fund and saving for retirement. In this podcast, I'll give you five money-saving tips to free up extra cash. Tip number one, create a financial routine. Having a financial routine is one of the best ways to master your money and avoid unnecessary expenses, like bank overdraft fees and late charges on bills and loan payments. Most people don't intend to make late payments or overdraw their bank account, but basic money management can fall through the cracks when you get busy or lose focus. The solution for staying on top of your finances and never getting hit with expensive late fees is to follow a money management system. Establish a personal finance day, where each week, without fail, you accomplish tasks like reviewing expenses, verifying credit and debit card receipts, reconciling bank accounts, and setting up bill payments. In my book, Money Girl Smart Moves to Grow Rich, I give you the details on the easy system that I use. Sticking with a routine will help you accomplish more in your financial life, like monitoring a budget, keeping an eye on your investments and saving more money. It's also a smart way to catch a would-be identity thief who could wreck your finances. By the way, I created a resource page with over 20 of the best money and productivity tools that I use. I've gotten lots of great feedback from people who have started using some of them to take their personal finances to the next level. To find out what they are, visit smartmovestogrowrich.com and click the button that says "Tools." Tip #2. Switch to free checking. If you're paying any bank fees, like monthly maintenance charges, ATM fees, or debit card fees, you need a better bank. There are many national and local institutions that charge absolutely nothing. In fact, some even pay you interest that's higher than current CD rates. One of my favorite places to find and compare high-interest checking accounts from institutions nationwide is checkingfinder.com. The banks and credit unions in the database are FDIC insured, have no minimum balance requirement, refund ATM fees nationwide, and offer free online banking and bill pay. Tip #3. Focus on the cost of your time. A great way to rein in spending is to consider what an item costs you in time rather than dollars before you buy it. I'll use Sarah as an example. She works as an administrative assistant in an insurance office and earns $15 per hour. Whenever Sarah is trying to decide whether to buy something, she divides her hourly wage into the price to figure out how much working time the item would cost her. For example, if a beautiful pair of shoes catches her eye and they cost $120, she divides $120 by $15 an hour, which equals eight hours of work. Sarah then asks herself, "Would I be willing to work a minimum of eight hours in exchange for these shoes?" If the answer is no, she forgets about the shoes. And by the way, she'd actually have to work more than eight hours because $15 is what she earns per hour before taxes. Tip #4. Cut health care expenses. Starting in 2014, the Affordable Care Act, also known as Obamacare, requires most Americans to have health insurance or pay a penalty. Depending on your income and family size, you may qualify for financial help. Assistance comes in the form of an upfront tax credit, which reduces the cost of a plan purchased through your state's health insurance marketplace or exchange. Even if you already have insurance through an employer, if it's unaffordable, you may qualify to shop for a less expensive plan on the marketplace and cancel your policy at work. A workplace plan is considered unaffordable when self-only coverage costs more than 9.5% of your household income. Another way to cut health care expenses is to enroll in a type of insurance known as a high deductible health plan. These plans offer lower premiums in exchange for higher out-of-pocket expenses. With a high deductible health plan, you're also eligible for a health savings account, which allows you to use funds to pay for medical expenses on a tax-free basis. For more information, listen to a previous podcast called "How to Save Money with High Deductible Health Insurance," which is episode number 242. In the transcript for this show, I'll include a link to the "Obama Care Eligibility Calculator" that was created by insurancequotes.com. You can use it to find out if you qualify for a health care subsidy. You'll find it on the Money Girl page at quickanddirtytips.com. Just look for episode number 257, called "Five Clever Ways to Save More Money." Tip number five, be a savvy grocery shopper. Now that we're in Q4, it's a good time to start thinking about making memories with the people you love most before the end of the year. We put a lot into the time we spend with our loved ones. So you want to extend that care, comfort and peace of mind to what happens when you're gone. 41% of people don't have the life insurance coverage they need. Policy genius makes finding and buying life insurance a breeze. With Policy Genius, you can find life insurance policies at start at just $292 a year for a million dollars of coverage. And some options are 100% online and let you avoid unnecessary medical exams. Policy genius combines digital tools with the experience of real licensed agents. You can compare quotes from America's top insurers side-by-side for free with no hidden fees. They have an amazing licensed support team that helps you get what you need fast so you can get on with your life. They answer questions, handle paperwork, and advocate for you throughout the process. Policy genius is the country's leading online insurance marketplace. And even if you already have life insurance through work, remember it may not protect all your family's needs or follow you if you leave your job. So save money and time on providing a financial safety net for your family. Head to policygenius.com or click the link in the description to get your free life insurance quotes and see how much you can save. That's policygenius.com. Calling all future shapers and dream chasers. MSU Denver is a place that meets your pace. We have drive and dedication to help you reach your destination. We're a school that works for you and with you at every step. Online and on campus learn with faculty and peers to forge a career. Tomorrow can't wait. Your next starts now. We are the changemakers. MSU Denver. Imagine what's possible when learning doesn't get in the way of life. At Capella University, our FlexPath learning format lets you learn on your own schedule. A different future is closer than you think with Capella University. Learn more at Capella.edu. Now, back to groceries. Most people can save money by eating more home-cooked meals. But don't fool yourself. Buying groceries doesn't automatically save you money. If you show up at the supermarket hungry and without a plan, you can easily buy more than you need or make expensive choices. So remember that eating in should never be an excuse to overspend. To save on groceries, always plan a menu for at least three dinner meals in advance. If you make enough for leftovers, that can give you food for an entire week. Try making the main dish of one meal without meat, like a pasta prima vera or a big garden salad, to save even more. Coupons can certainly help lower your food bill, but don't get lured into buying something you don't need, or that isn't a healthy option just because you have a coupon for it. When you're at the grocery store, only buy what you can eat. Prices for non-food and some non-perishable items, like paper towels, soaps, toothpaste, and drink mixes can be too high. Do your research to see if prices are lower at local discount warehouse stores or drug stores. Here's a quick and dirty tip. Start keeping price data on the 10 items you buy the most. Use an Excel spreadsheet or a Google Doc and enter a row for each item and a column for different stores where you can get it locally or online. You'll quickly figure out where you should buy different items and know when an advertised sale is bogus. You'll see when a price is so good that you might want to stock up. After you master the first 10 items, keep adding more to the list. Though the economy is improving, be sure to stay diligent in cutting expenses and creating good financial habits. You might be surprised by how much small changes can reduce anxiety about money, improve your financial life, and make you feel more in control of your financial future. I'm sure you have clever ways to save money. Please share them with everyone on the MoneyGirl Facebook page. Just go to Facebook.com and do a search for MoneyGirl. If you're on Twitter, be sure to follow me under user name @LaraAdams, L-A-U-R-A-A-A-D-A-M-S with no space. Also, if you're not already subscribed to the MoneyGirl podcast in iTunes, that's how most people get the show. Subscribing is always free, and make sure that you'll get each new weekly episode as soon as it's published on the web. For hundreds of ways to do more with your money, get a copy of my book, MoneyGirl Smart Moves to Grow Rich. It tells you what you need to know about money without bogging you down with what you don't. It's available at your favorite bookstore in print, or is an e-book. You can even download two free chapters at smartmoves2growrich.com. I'm glad you're listening to change. That's all for now. Courtesy of MoneyGirl, your guide to our richer life. It's time to have your high-five moment with high-five casino, the top social casino where the action and real prizes never stop. Fun spins and big wins are right at your fingertips, with over a thousand games, including high-five casino exclusives. High-five casino is always free to play with free coins given out every four hours. Sign up today for a free welcome offer that can get you spinning and winning right away. Visit high-five casino.com. High-five casino. No purchase necessary. We're prohibited by law must be 21 years or older terms and conditions apply. Bye.