No matter how dire the economy gets, how broke people become and how many kinds of debt obligations you have to pay in a month, you can’t stay on the right track without saving money. With the present detrimental state of the US economy and the ballooning consumer credit card debt, it seems like everyone is counting pennies to make ends meet. Regardless of how the financial analysts refer to this economy, a recession or no recession, the laymen are being hurt financially. A stubborn unemployment rate at a close-to-double-digit rate, rising food costs and flat wages are some of the reasons for the sluggish economic growth and the intense dissatisfaction among the consumers. During such a pessimistic economic state, if you don’t want debts to mar your future, here are some steps that you may take to save your dollars.
Look for diversification of income: Are you satisfied with the 10-5 job that your employer is providing you with? Is the income satiating all your monthly needs? If answered no, you should look for diversification. It is not always needed to ditch your corporate cubicles to boost your monthly earnings. Do you have a hobby that can help you make a small business?
Stop paying a dime more for the privileges of banking: You may come across various free checking options that will charge a penny in fees for the right to write a check or use a debit card. There are many bank accounts that can even ask you for a fee to qualify for fee-free accounts but ensure you don’t succumb to the temptations when you’re already going through a distressed financial state.
Shop before getting your insurance coverage: Comparing and contrasting before taking out an insurance policy is a necessity when it comes to saving money. Make sure that you get multiple quotes from multiple companies so that you can compare the premium rates and the coverage offered by them. Conduct this search online in order to save your time and money.
Scale back your cable and unsubscribe from useless offers: Living with one basic cable is possible and if you want to save your dollars, you should avoid getting multiple connections. Don’t miss any of the basic cable channel offerings that offer rebates on the connections. If you’ve subscribed with magazine offers but you don’t get enough time to read them, you should immediately unsubscribe from such offers so as to avoid paying unnecessary bucks.
Raise the insurance deductibles: With the extreme competition in the insurance industry and the after-effects of the recession, most companies are raising the premium rates on the policies to reduce their risks. In such a situation, if you want to scrimp while making the insurance payments, you should try and raise the deductible amount. The deductible amount is what you have to pay out-of-pocket when you file a claim. If you can raise this amount, you can easily lower the insurance premiums and save your bucks.
Transfer your existing balance: Credit card debt is most common form of revolving debt and if you miss payments on your credit cards, you can stay sure about the fact that you’re going to lose money. As interest rates add up, it may soon spiral out of control and make you pay huge payments. Before you face this, transfer your entire balance into a low rate card before the completion of the introductory period. Don’t forget to read the fine print of the card if you want to avoid being subject to high rates and unnecessary fees.
Stop eating out: If you’ve been bragging about the habit of giving treats to your friends and colleagues, you should shrug this off lest it takes a toll on your wallet and leaves you bankrupt. Cook food at home and save money to stay armed for the future.
Figure out how to do things on your own: Before you run to a financial expert for getting jobs done, figure out whether or not you can do it on your own. Adopting a DIY method can always be cost-effective as you’ll be able to complete things on your own without paying the service charges to a professional. In case you have doubts, you can Google things in order to increase your knowledge.
Go generic: When you’re already figuring out the ways in which you can save your dollars, forget brand loyalty. Do you look for brands when you go to the shop to buy a packet of ketchup? Certainly not. You should be looking for the lowest unit price on it. This should be your attitude even for other grocery items.
Saving money comes with great consequences but not if it comes with enough expense of your long-term financial future. Consider the long term effects of your decisions as much as possible so that you don’t find yourself paying a hefty cost for your ‘savings’.
Author Bio: Paulette Noonan is a regular writer with Debt Consolidation Care (http://www.debtconsolidationcare.com/affiliate/) and is also a contributory writer with other financial sites. Expertise is woven around various aspects of the debt industry and with her e-books she tries to impart to people the different situations and simple solutions to get out of difficult situations.