Evan Vitale

Evan Vitale – Saving Money in 2016

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By Evan Vitale

Saving up more cash is the trend for 2016, but so many people often procrastinate in their efforts when it comes to cutting everyday costs. Listed below are ten tips to do today to keep more cash in your bank account and lessen debt risk.

  1. Make “Dining In” your norm and “Dining Out” as just a special treat. Our fast-paced workplaces have helped us justify a daily fast food lifestyle that is eating away at our savings goals.
  1. Brew your own grinds. Fancy coffee-to-go can run $4 or more a cup and unpredictable lines for a barista can cut into an efficient work day. Acquire an inexpensive grinder and a coffee maker that is easy to use or a cheerful color to brew a thermos-to-go of that magical brown elixir for only pennies a cup.
  1. Get rid of high-priced gym memberships. In the event you want the incentive that is part of the fitness center social scene, join a community-based running, biking, hiking club or a small yoga group. You’ll be able to casually socialize afterwards without a monthly credit card gouge.
  1. Rethink your entertainment options. Rather than going out for the movies, hit the library and check out movies for a week for free. You won’t have to listen to ringing cell phones in a theatre and you can enjoy your own homemade cookies and snacks. Limit your evening out “clubbing” to quarterly or once a month, and have close friends over on Friday nights instead for a cookout.  
  1. Rethink your driving style. Make an effort to drive only if you really need to in order to cut back on gas. Don’t let your car idle more than 1 minute. Look into a park and ride commuter lot for the trip to work and seriously evaluate the need for those last minute trips to the store and fast food.
  1. Always keep your automobile maintained. Appropriately inflated tires as well as a tuned-up engine can enhance your gas mileage favorably.
  1. Design your own dream “staycation.” If you take time to invest in exploring more localized travel options, you can save the travel money for some finer dining options closer to home or splurge on your favorite hobby supplies guilt free.  Not to mention, saving you hundreds of dollars on hotels and gas.
  1. Cut those utility expenses. Swap out furnace filters often. Add weather stripping around doors and windows. Repair leaky faucets and running toilets. Wear sweaters and reduce your thermostat in the winter and try to use your ceiling fan rather than the A/C in summer.
  1. Get fresh quotes for your insurance coverage expenses. Insurance rates, particularly auto insurance coverage prices, can differ a great deal from between competing firms.   By acquiring at least three various comparison quotes, you may lower your premiums by hundreds. An easy strategy to do this is on the internet at an insurance coverage comparison site as your first analysis and then talking to a locally based firm rather than a national brand name.  Driving less and taking benefit of discounts can reduced your prices at the same time. Also, consider raising the deductibles on both auto and property or tenants insurance to lower premiums. Just make sure that if you need to make a claim for a loss that you have enough cash on hand to pay the deductible.
  1. Be careful with “cash back” added on to debit card transactions.  The cash is usually quickly spent without a recollection of where it was spent.  It is also hard to remember to write the transaction down which can make it too easy for a checking account to become overdrawn.

Evan Vitale – College Students and Credit Cards

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By Evan Vitale

When it comes to college students and credits cards, it can sometimes be like mixing oil and water. Sometimes, it seems like credit card companies offer credit to college students like candy.

Too much of anything is a bad thing.

Fortunately, college students still need to qualify for credit and, with some help from parents (and the bank), students can keep themselves out of early credit trouble.

Here are some tips for college students thinking about credit cards:

  • Make sure you know how credit cards work. What’s the credit limit? Is there an annual fee? What is the interest rate? When is the due date? What is the penalty and late fee if you can’t pay on time?
  • It is a good idea for any student to have a job before they have a credit card. Typically, if a student is under the age of 21 and they don’t have a job, they may need a co-signer in order to obtain a credit card. Even then, higher interest rates may be attached to the card due to the risk involved.
  • Make sure you do your research. Many credit card offers will be coming your way as you start college. Check the rules; rates; fees and benefits of each card before filling out an application.
  • Avoid signing up for multiple cards. With many credit cards in hand, you’ll be tempted to spend more and, before you know it, you’ll juggling payments and late fees. This is how quickly some college students get into credit trouble.

Some credit cards offer rewards for purchases made using a particular credit card. In some cases, rewards act as cash that you can use to help pay off your credit card balance or they can be cashed in for other perks such as free gas or for gift cards.

Evan Vitale – Staying On Track With Your Budget Resolutions

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By Evan Vitale

Congratulations! You’ve made it one month into 2016 and, hopefully, you’re still on track with your personal budget resolutions.

Of all the resolutions you may have made on January 1 – losing weight, finding a new job, breaking a bad habit, etc. – your budget resolution may be the most important one.

A recent study conducted by the University of Scranton shows that more than half of those who set budget resolution goals give up within the first three months. However, those who made it to the six-month mark, stayed on track for the entire year.

If you haven’t created a persona budget for 2016, it’s never too late to get started. If you have a budget, now is a good time to review it.

Here some other things you should consider when creating or reviewing your personal budget:

  • Try to put a little bit aside as an emergency fund. This way, you’ll always be ready for the unexpected. Typically, an emergency fund covers approximately three-to-six months of daily expenses. Hopefully, you’ll never need to tap into those funds, but it will give you peace of mind knowing emergency funds are available if such an emergency arrives.
  • Be it computer software or paper, make sure you set up a system for your budget that you are comfortable with using. Daily remembers on due dates and other action items will help you pay bills on time and avoid penalties and late fees.
  • Review your retirement plan, investments and benefits, whether you are employed or self-employed. It might be a good time to have an “update” meeting with your financial planner and/or a meeting with your benefits supervisor at your office.
  • Try to save. Adjust spending, cut back on a few extras here or find other ways to bring in more income.

Keep going on your budget resolution!

Evan Vitale – Tips on Frugal Living

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By Evan Vitale

There’s nothing wrong with cutting back on expenses, saving money and becoming a little more frugal.

Frugality is all about changing your lifestyle. It has nothing to do with being a cheapskate or a miser. By following a few simple tips, we can still enjoy life, but we’ll also have a better handle on our spending decisions.

Here are some frugal tips you might want to consider:

Buy in bulk when you can. Then, divide the bulk buying into smaller packages making sure that you have proper storage. Buying meat in bulk, for example, is a great idea if you have a big, chest freezer.

Eat at home and make your own meals. You’ll save more money by making your own meals.

Visit farmers’ markets and farm shops. These are not only a great way to buy cheap and healthy fruits and vegetables for your family, but you’ll also be helping a local farmer. In some cases, you’ll be able to purchase local honey, jams and baked goods at great prices.

Cut back on eating out. This is a tough one for everyone as we all love to go out for breakfast, lunch, dinners, etc. Be more frugal by cutting back to once a week or once or twice a month. Give preference to eating establishments offering coupons. Some even offer “kids eat free on Wednesday” specials.

Use the library. Instead of buying new books, DVDs and music, the library is a great, free resource in which the entire family can save money on books, magazines and more by borrowing materials and returning them at a later time. A friend of mine says his local library has a huge catalog of music and movies than can be borrowed for up to two weeks at a time (for free).

Cutting back and saving money will help you live with a little less financial stress in your life.

Evan Vitale – Understanding Auto Insurance

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By Evan Vitale

It seems we are constantly bombarded by television and radio commercials; newspaper ads and daily junk mail offering us the best automobile insurance at affordable rates.

“In 15 minutes or less, you can save more on your auto insurance,” claims one such automobile insurance company.

As we try to wade through the mud of lower rates and insurance savings, every auto owner is required to carry minimum levels of insurance in order to protect occupants, damages, theft, etc.

Usually the minimum required coverage comes in the form of liability insurance. This means your insurance company would cover the other party if you are involved in an accident that you caused. The key phrase to remember here is “other party” and not you or the occupants of your car.

If you want more than the minimum (and most do), you can add:

  • Collision (which covers your own property payments if the accident is your fault).
  • Medical (which covers your own medical payments if the accident is your fault).
  • Uninsured Motorist (which covers your medical and property payments if the accident is the other party’s fault and they are uninsured).

Each coverage type has two types of coverage limits which relate to (a) the maximum amount covered per accident and (b) the maximum amount covered per person (per accident).

In addition, you may also want to consider purchasing coverage in case you encounter a non-accident vehicle damage or loss due to theft, fire or something else.

The term “deductible” is used a lot when it comes to all kinds of insurance. The deductible is the amount that you have to pay first before the insurance kicks in. If you have a low deductible, then your premium payments will be higher than if you have a high deductible.

Check with family and friends when you start looking for better insurance rates. Also, you might be considered for some discounts for having a good driving record or by belonging to a certain professional organization. Some group memberships offer special rates on automobile insurance.

Evan Vitale – Start Saving Money Today!

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By Evan Vitale

Saving money seems to be an extremely difficult task for most Americans. Yes, we have daily, weekly and monthly living expenses that need to be taken care of, but we also like to eat out, drink fancy coffees, and enjoy some entertainment time.

However, there are many easy tips and ideas that can help you trim back a few expenses, allow you to enjoy your current lifestyle and start saving money for a rainy day.

Saving money begins with creating and following a budget. Keep track of your expenses and find out where the money is going. A friend of mine kept a receipt for every expense – including a soft drink in the drive-thru restaurant – so he could quickly figure out why (and where) his money was disappearing from his bank account so quickly.

Once you begin to track your expenses, then you can start planning on how to cut expenses and save some money at the same time. Think about this for a moment: If you were able to save only $10 per week, that’s $520 a year. Placing $20 into savings each week, is over $1,000 per year!

Start by trimming the fat little by little. You’ll probably quickly find out there are many expenses that you can trim in order to build up your savings account. Start with the easy ones:

Instead of buying two coffees per day, cut it back to one per day. If you’re drinking only one expensive coffee per day, consider taking your own “brew-it-at-home” coffee with you and treating yourself to an expensive coffee on a special day.

Take your lunch. You’ve probably heard this one before, but eating out can burn up the budget quickly. My budget-minded friend was spending $10 or more each day for lunch (that’s over $50 per week). Now, he takes his lunch to work four days a week and treats himself to a budget lunch every Friday.

Look at other expenses you can trim:

  • Public transportation instead of driving to work (saving gasoline and parking fees).
  • Renting DVDs instead of going to the movies.
  • Trimming your cable television package.

Again, keep track of your expenses; create a budget and start saving some money for a rainy day!

Evan Vitale – Starting A Budget in 2016

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By Evan Vitale

We all make resolutions for the new year: exercise more, lose weight, stop smoking, etc. However, a great personal goal you can set up and follow (starting today) is creating a simple budget and sticking to it.

Budgets are often ignored in most households. In fact, that’s how we sometimes get into trouble when it comes to savings, credit problems and not having enough money to make ends meet each month.

How can you solve this problem?

First, be aware of how much you spend each day, week and month. This means keeping track of what you spend every day, even on minor purchases such as coffee, lunch, magazine purchases, etc.

Second, create budget categories, such as:

  • Food
  • Clothing
  • Utilities
  • Lawn care
  • Entertainment
  • Household
  • Gifts
  • Auto
  • Vacation
  • Medical and Dental
  • Insurance
  • Taxes
  • Education
  • Mortgage/Rent
  • Savings

Using your checkbook, computer program, spreadsheets, receipts, etc., calculate what you spent in each category over the last year. For example your electric/heating bills, monthly mortgage/rent payment, etc. In some cases, you will find that expenses are the same each month, like rent for example.

Some categories might be a little more difficult. Take your monthly electric/heating bill, for instance. Some months, it might be higher because you needed to rely more on your furnace or air conditioner. That’s OK. Use the highest utility invoice as a base amount for your budget. If your largest utility bill was $100, then calculate your monthly budget at $100 for each month. Obviously, many months are going to be well below that amount, so you can adjust your budget accordingly as you progress each month. Note: saving $30 on your April utility bill doesn’t mean that you’re going to unnecessarily spend $30 on a steak dinner. Instead, you can shift the “extra” funds to another budget category or, better yet, put it into savings.

If you create a budget – and stick to it – you’ll always have the funds on hand to make necessary payments on time, build your nest egg savings account and have some cash in case of emergency.

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Check out another blog by Evan Vitale at http://evanvitale.net.

 

The Four Pillars of Wealth

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If you’re planning on building your wealth, then you need to know what its four pillars are. Growing your wealth is simple if you know the four basic rules to doing it. Not everyone has the same path, which is why it’s not always equally easy for everyone to do it since some have bigger obstacles than others. But really, it all comes down to these four pillars if you want to build your financial future, no matter where you are starting:

Do less spending

If you want to grow your money, the first things you need to do is check your spending habits. You need to spend less to grow more. You’d be surprised at how much stuff you really don’t need in life. If you can get by with just the necessities, you’ll be well on your way to a brighter financial future. Don’t feel pressured to live a certain way because your neighbor next door. Instead, live with what works for you and save any money you can.

Earn more money

Everyone wants to earn more money and to build your wealth, you should try and earn as much as you can. Always be on the lookout for better employment opportunities that may pay better and don’t be afraid to ask for raise each year. If you can, try freelancing at night or on the weekends and if you can, start a business to earn more money. Many home businesses have turned into successful companies over time! And if you’re good at something, look into teaching. You will get paid for your knowledge!

Get rid of debt

In order to grow your wealth, you need to get out of debt. Interest can really kill you and turn a modest credit card bill into a monster if left unchecked. Pay off debt with high interest rates first and then focus on others. Stay away from new debt as you are trying to get rid of your old ones.

Invest in your future

Let your money work for you by investing. Do it yourself or have a financial planner help you. Think of investing as your “next job.” It’s what will get you to your retirement a lot faster and will help secure your future.

How to Properly Manage Your Money

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Some people grow up never knowing how to properly manage their money. They’re always broke and live paycheck to paycheck and are always wondering why they have no money. Yet they are out there living way beyond their means and still struggle each month to pay their bills. The way you manage, invest and manage your money can really impact your life and future and it’s sad that many schools fail to adequately teach students how to properly manage their money. For those having a hard time managing their money, here are some golden rules of personal finance:

Spend Less

At the heart of personal finance is spending less than you earn. Just because you bring home a certain amount of money each month, doesn’t mean you have to blow it all. This includes using credit cards to act as cash that you don’t have. You don’t want to live beyond your means, so spending less will help you figure out what’s important in your life, while also helping you save for the future. Create an expense sheet for your cash flow for a month and see what’s necessary and what’s not so that you can cut things out that you don’t need.

Save for the Future

A big part of your financial life should be saving for the future. This could be for when you’re old or for a rainy day when an emergency hits and you need funds fast. You should always factor in your savings when coming out with a monthly expense plan. And it should be listed as a necessity.

Invest Your Money

Make your money work for you by investing it. Properly investing your money will help your financial future. Invest in things that will earn you money over time and don’t always stash your money away in a low-interest savings account.

Get Out Of Debt

Debt can really weight you down, so make it a point to get out of debt over time. Focus on certain credit cards with high-interest rates and pay those off first.

Four Things to Know About Old Debt

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Sometimes an old bill will come out from hiding and haunt you. Maybe you totally forgot about it after mail getting lost or simply lost track of the bill? Whatever it is, your old debt will come back and haunt you as creditors start calling and bugging you to collect on what you owe. Although you’ll want to make sure to pay off old debt, there are certain things you should know about it:

Collections have time limits

Each state has its only limits on how long creditors can try and collect on old debt. Some are for five years, while others are 15, depending on the type of debt you owe. Once that time ends, the creditor doesn’t have any legal recourse to make you pay, which means you can’t be sued, have your bank account seized or be subject to any wage garnishment. But that doesn’t mean that you don’t have to pay it. The only way to make it not reflect on your credit score is to get rid of it by filing for bankruptcy.

Old debt and your credit score

The longer you don’t pay a bill, the more it will impact your credit score negatively. And if you go 90 days or more without a single payment, the creditor can charge off your account, which will have a bigger hit to your credit score. Negative marks on your credit score will show up for seven years and can impact whether you get approved for a house or any new loans. Paying off old debt won’t necessarily get your credit score in positive territory and still takes time to clear before it gets any better.

Not paying old debt

If you decide not to pay an old debt in full, know that you will get harassed by creditors and they will call day and night to get their money. There are even some collectors that will bother you 10 to 20 years after because they specialize in buying old debts for cheap and then hound customers until they eventually pay. And if you acknowledge that you actually owe the money over the phone, the clock restarts and now those collectors have even more time to buy you. When you are dealing with collectors, say as little as you can, especially if that collection window is almost closed. Instead, ask for written validation of such debt and then keep a traditional paper trail of your communications so that you protect your rights.

How paying off debt can work to your advantage

Paying off old debt can sometimes work in your favor, especially if you are planning on refinancing your home, buy a new car or get a mortgage loan. Even though your credit score won’t be great, the lender will at least see that you are trying to get your finances in order and are serious about it.