Aroma

Body

Books

Candles

CD/DVD

Flower
Herbs

Jewelry

Oils

Sound

Teas

Vitamins
 

When prosperity comes,

do not use all of it.

Confucius

Login:
Password:

Lost password?  Forget password?

PEOPLE'S HEALTH EMPOWERMENT AGENCY

PATHWAYS TO PROSPERITY

Wise Money Guide Prosperity Article

10 STRATEGIES TO SAVE MONEY

1. Start small.
Experts suggest you save 10% of your income. It's a good goal. But don't give up just because you can't save that much. Establishing a savings habit and saving consistently is better than putting aside a big sum just once. Start with something you know you can live with say, $25 a week. Promise yourself that you will save that much every Friday. Put each $1000 in a 1 year CD where you are least likely to touch it.

2. Sign up for the 401(k) plan at work.
Contribute up to the amount of the company match, which is the amount your employer kicks in when you contribute. The most common match is 50 cents on the dollar. This gives you an immediate 50% return on your money.

3. Monitor your ATM withdrawals.
Decide how much you will take out each week and make it last. Make it a little tight. And try to decrease it over time if you can. If you have money left at the end of the week, put it into your savings account.

4. Pay off all your credit cards and student loans.
List your credit cards beginning with the one with the highest rate. Cut up all of them except the two with the lowest rates. Begin paying extra every month on the card with the highest rate. When it's paid off, move to the card with the next highest rate. When you're finished, start adding $50 a month to your savings account. By paying down debt, you get a return of whatever the interest rate happens to be. So pay off $1,000 that you're carrying at 18% and you get an 18% return.

5. Set up an automatic investment plan.
You can arrange to have as little as $50 a month deducted from your bank account and deposited into a mutual fund.

6. Pay a little extra each month on your mortgage by "rounding up." You will add equity to your home, giving you extra flexibility when you decide to move
or refinance. If you prepay $100 a month on a $150,000 loan, you will save $72,952 in interest and shave 7 1/2 years off the loan. You don't have to commit to paying a specific amount. Just round up your payment to the nearest hundred.

7. Pay off your car loan.
Interest on your car is not deductible unless it's through a homeequity loan. Even then, the rate is probably higher than on your mortgage. Pay it off and save.

8. Open an IRA.
Do this only after you've maxed out with your company's retirement plan. You'll probably come out best with the Roth IRA, which means you contribute aftertax dollars, but then get to withdraw it in retirement taxfree. If, however, you think you're going to be in a lower tax bracket at retirement or you've already contributed significantly to a regular IRA, you may want to stick with the traditional version.

9. Evaluate your term life insurance policy.
If you've had the same term life insurance policy for some time say, five years or more you can probably cut your premiums dramatically by changing policies. Here's why: Term is straight insurance protection. When you buy a policy, you get a medical exam so that the insurer knows you're healthy. But each year the premium increases as you grow older and the time stretches out after your health exam. If you apply anew and get a fresh exam, the insurer sees you as a better risk (if you are actually healthy).

10. Account for your money.
People who know where their money goes spend far less and save more. Keep a little notebook with you to record your small cash purchases.

 

Wise Money Guide Prosperity Articles
Online Resources That Promote Prosperity
Recommended Reading On Prosperity
Educational Resources Channel
The Homeownership Information Channel
The Career Information Channel
Pathways To Prosperity Main Page

 

 

 
 
 
Home   ::   About  ::   Programs ::   Products ::   Contact ::   Sitemap  :: 
Copyright © People's Health Empowerment Agency 2010-2020 All rights reserved.