No bank wants you to read this!!!!


Five easy ways to save $1,000 during difficult economic times

(http://foodincubator.wordpress.com/2012/09/26/office-hours/, http://foodincubator.wordpress.com/2012/09/26/office-hours/)

Reported by: Robb Hanrahan

1/31

 

You’re feeling the pinch. Despite avoiding the so-called “fiscal cliff,” you’re socked with another two percent in taxes because the social security tax reduction was phased out this year.

The average family earning about $50,000 a year is now paying $1,000 a year more in taxes, nearly a hundred dollars a month.

CBS 21 is watching out for your dollars, showing you five easy ways to get even with the new taxes of 2013.

Number five: Cut the morning coffee! Your morning coffee house ritual is costing you big time.

Just by cutting your five dollar a day cup of coffee, you can save $100 per month or $1,200 a year. Bring your coffee from home and you’ve just paid for your tax increase.

Number four is to brown bag it. Your colleagues might tempt you to go out for lunch every day, but it adds up.

Plan ahead because you can save $10 a day carrying your lunch, based on a $15 dollar lunch out and a $5 dollar brown bag. Do it three times a week and you save $120 per month, or $1,440 a year. You’ve made your tax increase and may even eat healthier. Financial expert Rick Rodgers says every little bit counts. “If we think of a little here and a little there, it can make a difference,” Rodgers explained.

Number three: Evaluate your cell phone bill.

Most people are on a plan and Rodgers says almost no one meets the plan exactly, either going over in expensive minutes and data or not using what they’re paying for. Rodgers says put away your ego and give up the trendy expensive phone. Consider a pre-paid phone plan, especially for teen-agers because they have unlimited data and messaging. Rodgers has one for his son. “His phone is like my phone, except it is pre-paid, it’s like an iPhone,” Rodgers commented. Going from a $200 a month plan to a $40 per month pre-paid plan can save you as much as $160 per month or $1,920 a year. That’s twice your tax increase.

Number two: Avoid impulse buying. Just because it’s on sale, or you’re conveniently at the store and see something you want, don’t buy it now. Rodgers says wait one day.

“And if you still want it tomorrow consider buying it, but chances are you’ll forget it and you’re not going to get it,” Rodgers told us. Savings here will vary, but if you passed on impulse purchases of 21 dollars a week, that’s $84 a month or $1,008 a year, covering your tax increase.

And number one: Don’t use credit cards.

Rodgers recommends we buy everything with cash. Leave the plastic at home, even your debit card.

“The simplest way to explain it is it removes the pain of spending.” A Dunn and Bradstreet study says we spend about 18 percent more with plastic. That nearly 20 percent of increased spending is why credit card companies offer deals such as points, discounts and cash back. Leaving your credit cards at home is key because it eliminates temptation. if I make a list and have cash in my pocket to pay for it, I can’t overspend. It all adds up to huge savings. Leave the credit card at home and you could spend up to 20 percent less every time you check out.

If you normally spend $1,000 per month on your debit and credit cards, the study shows you’d actually only spend about $800, saving $200 a month or a whopping $2,400 a year. (No bank wants you to read this!!)

That’s more than twice the average family’s 2013 tax increase. Now if that is not enough tips for you, we have a few more too.

  1. One is what to set your home thermostat at. To save money it is recommended you set your home at 68 degrees in the winter and 78 degrees in the summer. You can save $4 to $5 for each degree a month.
  2. Another is to buy paper goods in bulk. Buying items like toilet paper, paper towels and printer paper in bulk makes sense because they are easy to store and never go bad.
  3. One more way is to ride a bike or carpool and to combine errands. Taking these steps will help you save money, as the average family spends $40 per week in gas. 
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