Debt Free Destiny

Use these money saving ideas to help you build your savings account and avoid common budget-blowing blunders.

Everybody wants to save money, but few people really make the effort.

If you are one of the few, the benefits can really add up: literally into thousands of dollars a year.

And remember, budgeting and saving go hand-in-hand, so if you’re consistent and determined in both areas, you can make a big difference in your budget and your bottom line.

Here are 5 ways that you can can really save a bundle of money and help you reach your financial goals. Let’s take a look at them starting with the biggest saving opportunities.

5 Great Money Saving Tips

1. Refinance your Mortgage

   Your biggest expense each month is probably your mortgage payment. For most people, the majority of that payment is interest (AKA: profit for the bank).

   Typically, over the life of your loan, you will end up paying twice the purchase price of your home in interest. With interest rates at near-record lows, you can more than likely take advantage of a real opportunity to save a substantial amount of interest by refinancing your mortgage now.

   Even though you may have to pay some closing costs to refinance, most lenders will roll them into the loan so you won’t have any out-of-pocket costs. And the closings costs will be easily made up for in savings over the long run.

   LendingTree Mortgage Refinance
   
   is a great place to start looking for a cheaper mortgage.

   If your current mortgage interest rate is competitive, refinancing may not be a smart thing to do. Instead, consider paying and extra $100 or so each month to the principal on your home loan. Doing so will save you tens of thousands of dollars in interest charges over the life of your loan.

2. Shop around for Insurance - Auto, Home and Life.

   With competition heating up in the insurance world, there is a big saving potential for the consumer who takes the time to get quotes from several carriers.

   If switching companies isn’t practical for you right now, look into raising your deductible on your auto and homeowner’s insurance policies.
   

   Homeowner’s Insurance - Although rates are rising in many parts of the country, you can still win if you shop around.

   I like to go to Insureme.com get quotes. They are fast and have a wide variety of insurance carriers to offer you quotes.

   Car Insurance - This has to be the most competitive insurance arena. There are several large insurance carriers that are constantly locked in battle for your business.

   You’ve heard all the commercials: Geico, Allstate, Progressive and many others are all competing and you are the winner.

   All you have to do is ask for quotes and you can be on your way to saving literally hundreds of dollars per year.

   Shop and Compare multiple Auto Insurance quotes for free.

   Life Insurance - I saved a ton of money by going with term life insurance. I got a 20 year fixed policy for $22 a month which is typically a lot less than a whole life policy.

   Be sure to get enough coverage to pay off your mortgage, and your outstanding debt, and enough to let your surviving spouse and children live comfortably for a while. The rule of thumb is 8-10 times your annual income.

   Get a free term life insurance quote at Insureme.

   When you’re getting quotes, ask if you can get a discounted rate if you go with them on more than one type of insurance. This called “bundling” your insurance, (i.e. getting your car and home insurance through the same company). Many insurance companies will be glad to get more of your business, so they will gladly offer lower rates.

   Many insurance companies look at your credit score to help determine your rates. It’s very important that your credit score be the best that it can be. Click here to read more on how you can improve your score.

3. Avoid Fees
   Are you being fee’d to death? Probably. Especially if you keep using that out-of-network ATM and have a bank that loves to nickel-and-dime you. Here’s a few quick tips to avoid all the pesky fees that can really add up:

    

   -	ATM Fees - always use free ATMs. Find out from your bank which ones you will not get charged for. If you find yourself consistently in a location where you get charged a fee, get extra money out at the non-fee ATMs. This should be a no-brainer, but a lot of people pay a lot of ATM fees unnecessarily.
   -	Misc Bank Fees - You may be charged the following types of fees: low balance, bill pay, and check writing fees. Lets make this clear: you should never be charged these fees. With so many banks competed for your business, you should switch to a bank that doesn’t charge for these. There are lots of “free checking” banks out there as well as new internet banks, like my favorite, ING Direct’s Electric Orange checking account, that will not charge you misc. fees, pays you interest, and have free Bill Pay. Don’t pay for the privilege of paying your bills online through your bank. This should be free. If it’s not, switch banks.
   -	Late and Over the Limit Fees - Do everything in your power to pay your bills on time. Especially your credit card bills. These can be the most expensive type of fees and are completely avoidable. Use software like Quicken or Money to remind you ahead of time when you have to pay your bills, or have them automatically deducted from your account.

   
   

4. Switch your Phone Company - Dump the telephone company and go VOIP!
   By using your phone over your broadband connection, you can save a bundle of money per month on your phone bill.

   VOIP (Voice over IP) is a technology that uses your current broadband internet connection to transmit your voice calls over the Internet. If you’ve got broadband internet access in your home, you’re ready. Companies like Vonage and others are gaining market share and the quality of the phone call is indistinguishable from a standard telephone conversation.

   I switched to Vonage a while ago and have been very pleased. Their plans start as little as $14.99/month which is a huge savings over a the average $45/month for the standard

5. Go Solo with your Cell Phone - If you find you don’t use your home phone much, you may want to consider just canceling the service and using your cell phone as your primary means of communication. Many people are going this route to save money and because cell phones are getting clearer and more reliable.

   The only thing to watch out for here is going over your minutes. It can be a budget-killer. You might want to check out getting an “all-you-can-eat” plan for a little more than you’re paying now. Or check into getting a pre-paid cell phone plan. That way you know how many minutes you have left so you can’t go over. Really good for self-control.

   Companies like Tracfone and Net10 have easy prepaid cell phone plans that won’t bust your budget.

With these five tips alone, you can probably save at least a hundred dollars a month, guaranteed. Always keep in mind your goal, debt-free living. Applying these tips is a sure-fire way to stay within (and beat!) your budget guidelines.

Good Luck! Contact me with your money-saving tips or experiences. If it’s a good one, I’ll list it here and give you the credit!