Frugal Tip for the College-Bound

It's a busy time around the house as college-bound students are heading back to college. Some of the young adults may have worked part-time during the summer break to earn extra money which is a wonderful idea.

Frugal Tip ->Hopefully, they saved some of their earnings to help out with buying dorm room items, books, and other necessities. If they already have a credit card, encourage them to use cash instead or debit card where the funds are taken out of their checking account. The last thing students need to be concerned about is the credit card bills arriving in the mail.

3 Helpful Budget Tips

Hello everyone, many of you know how I like to start the new month off with a budget review. We're only day two into the new month of August, but no time to waste. Here are 3 budget tips that will be helpful to your household and wallet. You get a thumbs up already from 'Garfield the Cat' for your efforts.

1. Grocery Shopping ->As the food prices started to creep up fast in July, the grocery receipts saw a big increase. There is no way around putting food on the table. Make sure to keep clipping coupons when heading out to grocery shop and keep your eye out for bargain buys.
2. Credit Cards ->It's good to keep at least one or two credit cards in good standing by paying the bill each month on time. Did you have a car or home repair that extra cash could not cover? This is the time to pull out the credit cards in an emergency. Use cash or debit card where you know the expenses are immediate most of the time. If you can, always double the minimum amount when sending in a credit card payment. Better yet, pay the balance in full if you can swing it.
3. Part-time Work ->After working a full-time job weekdays, thinking about adding a part-time job after work and on the weekdays probably doesn't send anyone jumping for joy. With a tight budget each month and little to no money left over, a part-time job sounds like a good bet. The job market is still tough for those seeking part-time work so it might not be easy. If you land one, focus on how the extra money will be spent especially paying down debt.

 I hope these budget tips are helpful as we continue to watch our dollars and save money.

Frugal Tip of the Day

Now you know I could not let the first day of the new month go by without my frugal tip ->As the bill paying gets going, add an extra $5-10 dollars to the credit card statement. Every bit of extra money helps dwindle down the balance. If you have more than one card due a payment, put the extra money towards the credit card with the highest balance.

Junk Mail Tip

I think most of us would rather skip opening junk mail and marketers are getting savvy by making the envelopes look so official, but when you open them it's a sales pitch for something. Don't just throw unopened mail in the trash even when you suspect it might be junk. Many of us have heard of "dumpster divers" who actually go through trash to look for information with personal information on it. Be on the safe side by opening and then shredding junk mail especially credit card offers...who needs those anyway.

Debt ->Don't Reach the Ceiling

The U.S. has reached it's debt ceiling and will need to find ways to start paying it off soon. The debt level as of today is $14.3 trillion dollars. I am pretty sure the average person will never see themselves in trillions worth of debt, at least I hope not :-) It's a good idea to try your best not to let your borrowing and credit cards get out of hand. If you find yourself in a pinch or an unexpected expense comes up, try to use the credit card with a low interest rate and possibly not a high balance already. Plus, when the bill arrives and hopefully your cash flow is better, send in a double payment to start paying the card off quickly.

Cash Really is King

I read a story in the Atlanta Journal Constitution yesterday about a couple who climbed their way out of $83,000 worth of credit card debt. By the way, that's no typo on the dollar figure of their debt. I was amazed and thought to myself how anyone could get themselves into that much debt. I applaud their efforts in shaving down their debt and are now spending with cash. I know some people who use their credit cards and pay the balance off each month and this is smart. But, not everyone can and it doesn't take long for the balance to creep up with interest to where the minimum monthly payment is all that can be paid each month. By using cash, you're more aware of just how much money you have for purchases. Simply knowing that you can reach into your wallet and use a credit card is an easy way to begin the cycle of debt. Don't fall into that trap, use cash instead. You don't need to carry around wads of cash in your wallet, that's not safe anyway. I suggest carrying enough to pay for the purchases on your list. If you see a 'must-have' while shopping and don't have enough cash to buy it, think about it a day or two before heading back to the store to buy it. By then, you may not even bother.

Paying on Credit Cards

The ideal payment plan on credit cards is to pay the balance in full each month to avoid interest. If that's not possible, try to make a double payment on your credit cards each month in order to pay down the balance faster. If the monthly payment is $15, send $30. Of course, it's always best to use cash when making purchases.

3 Ways to Use Your Tax Refund

If you are going to be receiving a tax refund this year, here are 3 ways to use it.

1. Pay off/down credit cards: Take a look at your credit card statements especially those with high interest rates and plan to either pay off the card or at least pay down the balance. With the new credit card laws, some interest rates are much higher. This may make paying off the cards even longer so put your refund to work on the balances.

2. Home improvements: Use the refund to make home improvements that you may have been putting off because of a tight budget. Give your A/C unit a checkup before the summer heat take holds. Update your bed and bath with new accessories. Add some curb appeal to your home with fresh mulch, pine straw, flowers, and shrubs.

3. Simply Save It: Another good idea is to simply save your refund. Go ahead and deposit the refund into your savings account to shore up your emergency fund. You will be glad you did especially if an unexpected car repair is needed or an out-of-pocket medical expense arises.

These are just a few ways to use your tax refund when it arrives in the mail or is deposited to your bank account. As the saying goes, don't spend it all in one place.