This Blog Is For Women

7. Look for specials, buy in bulk, stock up on bargains.

image: flickr.com/photos/wwworks

This might seem like an obvious tip, but it never hurts to state the obvious.  If you can save $2 on toilet paper, why not save $10 by buying 5 packages?  How much toilet paper would Sheldon Cooper buy if it was on sale for $2 off?   I’m sure if you asked the astrophysicist his answer would be a very logical one.

But I digress…if the toilet paper is a deep discount, don’t buy just one package, if you have the room, buy several and put them in your closet and forget about them until it goes on sale again.    You can do the same with freezable goods like meat, and long shelf life items like cheese.

Avoid paying full price for clothing.  Unless you need to buy a uniform for work, chances are you have a variety of selection available to you.  Shop around, and you’ll find something that you love as much as the expensive designer model for a fraction of the price.  And if you’ve got a second hand store in your area, it can be a great source of clothing bargains!

6.  Use someone else’s money to pay off your debt.

image: flickr.com/photos/wwworks

I’m not taking about your in-laws or a benevolent benefactor.

If you have an extra room in your house, find a room-mate.  If you’re buying a house look for one with a flat or apartment built in.  This is the fastest and easiest way to make your mortgage disappear.  Don’t use the money for other things, slam it on your mortgage and watch your mortgage term dwindle down.

Why use your own hard earned money to pay down your debt, if you can get someone else to pay it for you!  I had a friend just after college who had enough roommates to pay his mortgage and all his living expenses.  Yes there were 4 of them living in 1 house, but he didn’t have to work to pay his housing costs!  That’s right!!  All he needed was a part-time job for discretionary spending.

5,  Make a car payment.

image: flickr.com/photos/damianmorysfotos

“Wait a minute, I thought you wanted me to pay off my car loan?”  I hear you…That’s what I said.

So, now that you’ve got your debt under control it’s time to start thinking forward.  You’re paying yourself first and accumulating an emergency fund and a nest egg.  So, now is the time to start thinking about avoiding future debt.

Imagine that in 3 years you’re going to need a new car.

Right now I want you to put aside 1/36 of the cost of the car each month.  Put it into a special savings account ear-marked for your next car.  So, let’ say that you want to buy a $10,000 vehicle in 3 years, that means that you should be putting aside $277 a month towards your next car, so that when the time comes to buy a car you’ve got the money in the bank just waiting for that perfect deal to come along.

If your dream car is not affordable in 3 years of “car payments” then perhaps you should rethink the practicality of buying it, or add lotto tickets into your monthly budget!

Once you buy the car, don’t stop there!  Continue to put the same amount away in your car fund every month, as if you’re paying a lender for it.  And use that money for surprise repairs, new tires and other  major car expenses.  Hopefully you’ll get 5 years out of your car, and have plenty of money in your car account to cover the next beauty!

4. Use your credit card wisely.

image: flickr.com/photos/76657755@N04/

Credit cards are convenient and they are a good way to develop a positive credit score.

But, and this is a big “BUT”…. only if used properly.

If you use a credit card, don’t buy anything with it that you would not pay for with cash.  And….and this is a big “AND”…pay it off monthly, never have a balance carry over from the previous month.  Credit card interest rates are ridiculously high and as soon as you miss your payment, or leave a balance unpaid, they charge you interest on the amount going back to the first purchase you made during that billing period.  And any balance that remains unpaid compounds the interest.

Only use your credit card if you have FOR SURE got the money to pay the bill.  If you’re not sure, don’t buy it.

3. Eliminate Debt.

image: flickr.com/photos/donkeyhotey

If you have credit card debt, a car loan, a student loan, or a mortgage you are paying money to someone else for the privilege of using their money.

One of  the smartest things you can do after paying yourself is to pay off your debt.

Start with your highest interest debt and chip it away with any spare coin until it’s gone.  Then apply that whole payment amount to your next highest interest loan.  For example if you have a car loan, a student loan, and a mortgage try this:

• Put an extra $50 a month on your car loan until it’s paid off.
• Once your car loan is paid off, pay your entire car loan payment  (including the extra $50) on your student loan, that’s right I’m saying add $300 a month to your current student loan payment, this might double your monthly repayment on your student loan, maybe you’re paying $600 a month now on your student loan.
• When your student loan is paid off, take the $600 a month and put it on top of your mortgage payment.  So maybe you’re paying $1600 a month on your mortgage….You’ve been paying $1600 a month in debt servicing all along,  but now you’ve eliminated 2 bills: your car loan and your student loan.  That extra $600 a month will go directly toward principle repayment and will slam your mortgage down faster than you can imagine!