This website can help you save, invest, and get a handle on your finances.
I think you will find it very valuable. You can contact me at alleycatnews@alleycatnews.net if you have any questions.
I GUARANTEE IF YOU READ AND APPLY THE INFORMATION IN THIS EBOOK YOU COULD SAVE AT LEAST $500 OR MUCH MUCH MORE IN THE NEXT FEW MONTHS.
We have 5 topics which you can find in RED and each topic has a couple of articles about the Topic.
SAVINGS
I will touch on a few ways to save money. Some of these ideas may only be applicable to people living in the United States while others can be open to anyone Worldwide.
U.S Tax Exemptions
The IRS stated, back in 2004, that the Average tax refund check was almost $2,300!!! That is almost $200 per month ($200 X 12 Months) that is given to the IRS INTEREST FREE!!! If you are getting a tax refund check of more than $300, you need to consider changing your exemptions. Otherwise feel free to send me any of your extra money. I will keep it for you until next year and NOT pay you any interest.
For example, if you got a $600 Tax refund last year (or plan on getting one this year), that is $50 a month extra in taxes that you paid last year. You earned no interest on it. If you want to, you can send me that $50 and I will keep it for you and a year from now send you the $50 back. That $50 could save you $100's of dollars in interest NOT paid if you applied it to your Mortgage.
Consider a person who has a 30 year mortgage on a $150,000 mortgage x 6%. If he or she made just 1 extra payment of $300, they would save over $1,400 in interest! Talk about return on their money!! That $300 could easily be paid by saving $50 a month for 6 months. $300 payments vs. $1,400 OF NOT HAVING TO PAY IN FUTURE INTEREST. THAT IS OVER 460% RETURN ON YOUR MONEY!!! It is hard to find a better return than that.
Change your Exemptions at your job. Exemptions and Dependents are NOT THE SAME THING! The same person who is getting a $600 tax refund is earning No interest from the Government. However, he or she could save $2-3,000 in interest on that same money!! This is how the middle class person gets AHEAD by USING HIS/HER MONEY CORRECTLY.
I had one lady email me. Her family was a one income household and money was tight. She read the information about changing the exemptions and sent me an email. Last year her family received over $8,400 tax refund! That is $700 each and every month they overpaid to the government. For a household that was on a tight budget that $700 a month can come in VERY HANDY! That is about the same as getting a part time job for 20 hours a week at $10 an hour. ($800 a month - taxes= roughly $700 a month) She didn't have to get a part time job she just needed to get her exemptions changed!
Credit Cards
I know that many of us have credit cards with interest rates as high as 15-20% a year. Here are a few tips on how to lower your rates and to get rid of them all together.
If you have high interest rate credit cards and have a decent credit score, you can do one of two things to help reduce your interest rates. One is to call your credit card company and ask them if they will drop your rates (I have done that myself and it does work. It doesn't work every time but it could be a phone call worth $100's for you). I walked my brother through this just a couple of weeks ago. He had a lot of debt and interest rates as high as 30%!! About half the credit cards did lower the rates one even lowered it by 20%! He had $5,000 on that card. Instead of paying $1500 in interest over a year he is paying $500. That is $1000 savings in interest alone for 1 year or almost $100 a month! In many cases, they will drop your rates for a short time. For example, if for a year, the credit card company drops your rates from 15% to 5% and you have a $5,000 debt, that is a great savings of $500 in interest for the year. This will free up some money for you to pay off the debt quicker. If a credit card company isn't willing to work with you and drop your interest rates, look for a better interest rate credit card. www.bankrate.com is a great place to shop for credit cards with good interest rates.
Just watch out for balance transfer fees, etc. Each situation is different but there are millions of people who are throwing away billions of dollars a year in interest because they either don't know that they can get a better rate or they don't know how to ask for one. It is really as easy as picking up the phone and asking your credit card company for a better rate. (Worst they can say is NO, and it's a call that lasts less than 10 minutes.)
I don't recommend using credit cards, of course. This is a website about finances and getting in a better financial position and you don't do that by running up credit card debt. However, I know that many people do have credit card debt. By either calling the credit card company to get a lower rate or by looking for a credit card with a lower interest rate, you can cut down on your debt.
If you don't have the best credit and your credit card company isn't willing to work with you, and you can't find a credit card that offers a better rate, consider suspending any of your current investing and focus your attention on paying off your debt. For example, if you had a $5,000 credit card debt at 15% interest paying that bill off is like getting 15% on your money tax free and with NO RISK.
What do I mean? Well, if you had $5,000 in credit card debt at 15% interest over the course of the year you would owe $750 in interest. ($5000 x 15% = $750). So the total amount that you owe is now $5,750. Let's says you also happened to have $5,000 in the bank and instead of paying off your credit card, you just invested it. So you invested in the stock market or mutual fund and during that year the stock market had a decent year and you earned 15% on your money (Historically, it averages about 10% a year). So you made $750 in profits off of your $5,000 investment in the stock market/mutual fund. You then open up your credit card bill and the amount is $5,750 as well. This time you so decide that you want to pay off your credit card, even though you could have done that last year when the balance was $5,000. Well, now you sell your investment in the stock market/mutual fund. You pay $50 in commissions to your broker and 20% to the government for taxes ($150). So your net earnings are only $5,550, but you have a bill of $5,750. Even after you pay all the money you just got out of the stock market/mutual fund you STILL owe the credit card company $200 more (Of course that is just an example and those figures could change, etc.).
The point is that paying off credit card debt is the best investment that you can make. It is a GUARANTEED return, and you don't have to take taxes out of it as you are just paying back a debt. The above example showed a 15% profit in the stock market/mutual fund. What would have happened if the investment only went up 5% instead of 15% or what if it went down 15%? You would be in an even a bigger hole. In the example above you would have needed a 20% return in order to pay off the credit card in full after commissions and taxes.
That is double the average return for the stock market. Historically, that is asking a LOT when you could just have paid it off from the beginning and not have to deal with the stress of the debt.
I always suggest paying off personal debt (which includes credit cards, automobile loans, furniture loans, personal loans, and student loans) prior to investing money in the stock market/mutual fund. This is unless, of course, you are getting matching money from your employer. Then it is like getting additional money. But only put in as much as your employer matches.
A credit card that I use is Choice Privileges I received 3 free nights at Choice hotels. (Comfort Inn, Clarion, Sleep Inn, etc..) They offer 1 free night now if you get their card and sign up so if you travel or stay in hotels it may be a good card but ONLY if you pay off the balance each month as their interest rate is AWFUL HIGH! Go to www.choicehotels.com and look for their credit card offer.
You can also get a FREE credit report each year (IT'S A LAW!) by going to www.annualcreditreport.com It is free once a year but make sure you go to the right site. There are a lot of copy cats out there trying to get you to pay for it.
10 MINUTE TIPS THAT CAN SAVE YOU $$$
Here are a few tips that can take 10 minutes or less but will save you some money each month:
1. Air pressure in your car tires can make a difference of 10% or more in your gas mileage. Buy a tire gauge; you can purchase one at the dollar store or for a couple bucks elsewhere. Let's assume that you have 2 cars and you put $20 of gasoline a week in each car or $40 a week (I know that many of you probably spend MUCH more than this, but it's just an example). That $40 a week is $160 a month in gasoline. If you saved 10%, that would be $16 a month. It's almost like getting your gas for free for one of your cars for a week! Think of it as like getting a free fill up every month. Just look at your tires to see how filled they should be. Check your tires every couple of weeks which shouldn't take more than 10 minutes a month.
2. Turn your thermostat down 2-3 degrees this winter in your home and you could save $50-$100 over the winter. Just put on an extra shirt or throw an extra log on the fire. With energy prices as high as they are, it can save a great deal this winter.
3. Buy a discount coupon book. Coupon books can range in price from $10-$50, but they can save you a GREAT deal of money. For example, our local one costs $25 and there are 100's of restaurants that offer 2 for 1 prices. So instead of paying $20, for my wife and me to go out, I would only pay $10. That really can add up. Even if my wife and I only go out once a month and save $10 each time, that is $120 savings a year. This is a great return for only spending $25. Plus, the book has coupons on entertainment, car services, and more. We easily save $300-$500 a year because of our local book. That is $30-$40 saved each and every month by just using the book. A good resource for a discount book is www.entertainment.com They offer books in about 160 cities in the U.S. If you don't find one in your area, do a Google search for your city's name and the word 'discount' or 'coupon book'. Purchasing a coupon book is a GREAT way to save money and it doesn't take more than a few minutes to buy one!
4. Telephone and Internet. You can save BIG $$$$ by cutting your telephone, internet, and cell phone bills. Look into bundle packages that your local companies may have. If you sign up for their internet, phone, and cell phone package you get discounts, etc. Also if you are paying more than 5 cents a minute on your Long Distance, you are paying TOO MUCH. Check out a site like www.LD.com You can get rates as low as 2.7cpm on your long distance. They also have packages for local calls, cell phone deals, cable vs a dish, etc...
By joining a company like Sunrocket a company like www.sunrocket.com which offers local and long distance services for $17 a month. With a company like sunrocket.com, you can cut that to $17 a month. That is a great savings (about $1000 a year)! And it won't take you more than a few minutes to make a phone call and set everything up.
5. GYM MEMBERSHIP A few years ago, my wife belonged to a local gym that had a weight room, indoor swimming pool, and aerobics classes. She paid $19.99 a month for the membership and had to sign a two-year contract. Over the two years, she spent a total of nearly $500 for the gym membership. The unfortunate thing was that she only used the gym on average about once or twice a month, and it was usually for the aerobics classes (by the way, my wife gave me permission to use her as an example!).
One easy way to save some money is to quit your gym membership IF you are not using it. Don't ever give up exercising, but find some other creative ways to get exercise. My wife now walks at our local park or at the mall when the weather is less than desirable. She has also found a Christian aerobics class (with Christian music) and pays $1 for every class that she attends. You might not have the luxury of having a Christian aerobics class in your area, but the point is you should not continue paying for a gym membership that you are not using (if you can get out of the contract).
6. Internet Access Do you need internet access, but you don't want to pay an arm and a leg for it (let's face it, internet fees these days can be astronomical)? Two services that we found to be significantly cheaper than others are Netpenny and Walmart. You can compare both of these services at www.netpenny.com and www.walmart.com.
Also consider using a web email account such as yahoo or hotmail as your main email account. Doing this gives you the ability in the future to change your internet provider more easily since you aren't using their email addresses. AOL now lets you keep your email address even if you cancel their service! But slowly wean yourself off your current provider's email and have more freedom to change services.
7. INK RE-FILLS with a home-based business, my computer printer is constantly getting a work out. With so many things to print, it is amazing how much ink that I use. If you have been to any major store lately, you know that print cartridges are very, very expensive. For my printer, a black ink cartridge costs around $30 and this will last me only a couple months.
I have been fortunate to learn about ink refill kits on Ebay. With these kits, you can refill your own ink cartridges and keep using the same ink cartridge. This has saved us hundreds of dollars a year, and the refill kits are much more reasonably priced than buying a brand new ink cartridge. Refilling them is easy once you get the hang of it. I have refilled probably 30-40 cartridges over the last few years. We currently have 2 printers and have had other printers in the past, but at $30 a cartridge, that is close to $1,000 saved in a few years! Look for the refill kits from Ebay or your local store (Ebay is cheaper).
8. Shop4zero this is a Great website. Do you shop at stores like Target, JcPenny's, Circuit City, Best Buy, do you buy books or music online?
If so why not shop at those same stores but get cash back on your purchase! You would still go to those websites but by using shop4zero you will get cash back! It is a FREE sign up just go to www.shopandprizes.com for more info. I am saving money each month with them.
9. Insurance can be a big expense and if you shop around a little bit you can save hundreds a year. Whether its your Life, Health, or Car Insurance take 15-20 minutes on each policy you have and shop at a place like www.insurance.com and maybe you can save $100+ or more. I know when I moved from North Carolina to Michigan my health insurance rates dropped over $170 a month and I ended up with more coverage!
Taxes and a Home Business
Taxes are necessary and we, NEED to pay our taxes. However, as good stewards of God's Money, we also should not OVERPAY our taxes either.
Having your own Home Business
Whether you want to sell things on Ebay, sell a mail order product, or turn your hobby into a part time business, you can get great Tax deductions working from home (There are THOUSANDS OF THINGS THAT YOU COULD DO. Check out our Business Opportunities Section)
This could save you Thousands of dollars each year.
Here are some of the things that you can deduct for your home business (OF COURSE, CONSULT AN ACCOUNTANT FOR DETAILS. I am not a tax adviser):
- Business travel
- Mileage- this can be big!! It is roughly $1 per 3 miles you drive. Just think of throwing a $1 out of your car window every time you drive 3 miles!
- Medical expenses
- You can pay your kids to do some of the work. Instead of an allowance, pay them to help you in your business and get the tax deduction of Up to $4,000!
- You can deduct the office space for your home business.
- Phone bill if used for business.
- Internet costs
- If you get a post office box, that is deductible and you can deduct the mileage of driving back and forth.
I am sure there are 100's of other items to deduct. I am by no means an expert on taxes; however, I do know that I shouldn't overpay them.
All of these are LEGITIMATE deductions that the IRS allows.
JUST MAKE SURE YOU DON'T OVERPAY THEM. Your business doesn't even have to make money in order to get these deductions. You do have to try to make money with the business of course, but even if your business loses money, you can still use these deductions.
The reduction in Taxes you pay from having a home business can add up to $2,000-$3,000 or MORE each and every year. That is like an extra $170 in your pocket each an every month just off that ALONE!
Investing in your own Business
If you do it right, it can be one of the most rewarding investments you make. If you do it wrong, it will be a headache that could cost you Thousands.
The dream of course is working when you want, not having a boss breathing down your neck, not having a long commute, and of course, doing work that you LOVE.
The problem comes when people buy into their own business, but aren't willing to REALLY work the business. There are benefits and drawbacks to any job/business. Some people can't handle a business, because they need to have someone pushing them every day, otherwise they wouldn't get anything done.
Having your own business is an INVESTMENT of both TIME AND MONEY. If you have started your own business lately, have you invested the time and money needed to build your business? A business doesn't grow on its own. It needs to be worked. Sometimes that means throwing $$$$ at it and sometimes that just means rolling up your shirt and working it.
A business can be worked full-time or part-time, but IT DOES HAVE TO BE WORKED. Sitting in front of the T.V or reading a business magazine isn't working your business. Talking up your business in a chat room doesn't do a whole lot to the bottom line.
There are SO many businesses out there that a person can do. If you have a REAL desire to work for yourself, it can be done. It DOESN'T matter if you have a lot of money or not. What matters is your desire/passion for the business. If it is something that you REALLY WANT, you will get it. If I told you that I would give you $5,000 in 3 months if you could come up with $1,000 in 30 days, would you do it? OF COURSE YOU WOULD. And if you didn't have the $1,000, I am sure you would get creative and find it. Cut out on your cable TV for a couple of months, eat mac and cheese the next month, borrow money, or collect cans on the side of the road. Whatever it took, I am sure that you could come up with the money NO MATTER WHAT $$$ YOU CURRENTLY HAVE. I used that EXAMPLE to illustrate that if you want something badly enough, you will find a way to get it done.
The same goes for a business. It is YOUR business. You can be as successful as you want to be. If you want to work your business, there are many successful people willing to show you how to be successful if you are willing to work.
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Thank you
Steve Hoven
alleycatnews@aol.com
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