Daily Archives: March 7, 2011

We all know the basics of fiscal responsibility – spend less than you make, put extra in savings,  pay off debts right away, etc.  But what do you do when there’s just too much month left at the end of the money?

The only answer is to cut costs.  I know it’s easier said than done…trust me.  But somehow it has to be done.

The first step, no surprise here, is getting organized.  In my recent post Money Matters I mentioned Mint.com and Pageonce.com as tools for putting your finances in black and white (and red).  After getting mine established I could immediately see more clearly.

Even though most of our expenses are fixed, there is still room for improvement on the miscellaneous fees, etc. that come from not being fully aware of our spending and bill paying habits.

I’ve been doing lots of research, and have divided this into a 3 part series because I have so much to talk about – bear with me here because Part 1 is about taking care of business, but parts 2 and 3 have some great ideas for saving money on food, household goods and having fun.  Let’s get down to business.

Set up reminders for your monthly bills - I use Google calendar for everything, but a lot of banks offer email reminders too.  Apple and Android phones have free and cheap apps like Remember the Milk, which you can use online or on your phone and it will help you out with anything in your to-do list.  Even if you have all or most of your bills on autopay, when money is tight it’s good to know what’s going out when.

Know what you signed up for – Banks and credit cards are notorious for hidden programs and fees that we don’t know about or don’t remember agreeing to.  Look through your statements carefully and call to question anything that looks odd.  Even if you’re only paying $6 a month for payment protection, that adds up over time.  And if you’re going to pay for it, make sure it will actually help if you need it.  You’re better off reading the fine print now than throwing money away on something that only causes more stress once you try to cash in.

That said, if you have something like a rewards program through your bank, which also costs monthly or annual fees, it might be worth having in place.  As long as you understand how it works (some only count credit charges, some debit) it can be a great way to save money later.  Keep track of your points and visit the rewards site regularly.  They offer special deals daily or weekly on certain brands, etc. and nowadays all the top brands are part of it.

My tip: if money is really tight, cash in your rewards for gift cards at places you regularly shop.  Most programs offer additional incentives (like 2-10% cash back or additional points) when you buy a gift card.  So let’s say you cash in for a Target gift card.  Not only is this (basically) free money to spend on necessity items, but you get another reward.

Don’t get bullied - by your bank, credit card, mortgage lender or student loan manager. It’s daunting and stressful to even think about spending an hour on the phone with a person who may actually be sitting on the other side of the world (and not speak great English).  These companies have the research to prove that you’re unlikely to call about a problem under $100, so it’s no surprise that most fees total up to about that much.

I hate the idea of throwing money away, especially to a company that thinks I’m too lazy or ignorant to do anything about it.  If and when you call, most companies are quick to reverse fees, lower rates (slightly less common these days but it still happens) and work with you to make your payment options more palatable.  But you have to make the effort.  Set aside one morning when you’re feeling confident and make a few phone calls.  I can almost guarantee that you’ll feel a weight lifted by lunchtime.

Find more money – If only!  Actually, it is possible.   I recently re-learned (because I knew and totally forgot about it) that you can find out if you have unclaimed property from the State Treasuries.  You could have tons of stuff – cash, land, forgotten cd accounts that would all be like winning the lottery if you discovered them in a time of need.  Check out Unclaimed.org to search your state.

Stay tuned for the next installment where we talk about ways to save money on food and household goods.

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