Being frugal isn’t easy. It takes efforts and smartness to save a little amount every month. Here is a list of 15 practical money saving tips for people who intend to save real money. Don’t wait for an opportunity to invest. Let it operate automatically. Ask your bank to invest a fixed amount every month for 401(k) or other investment plans. Keep adding money in your saving account. This will earn you good amount as interest every month. Aviod paying banking fees. Use your bank services for free to pay bills, checks, auto deposits, etc. Don’t get simple credit cards. Pick the one that offers cash back facility. Over a period of time, you get a good return. Keep searching for hot deals that can save you some money. Don’t buy any items without proper homework. Use ceiling fans and table fans instead of air conditioners. They consume much less electricity than the latter. Replace  [...]

Among all other expenses, food is the most flexible one. We can save enormous amount by using few simple tips. It’s wise to stock basic stuff in bulk. This will save considerable amount of money. However, don’t try to stock perishable goods. Keep a track of stores that offer great benefits to customers through discounts and coupons. Keep a track of food stuffs that you regularly buy in small quantities. Get them in large quantities whenever possible. Don’t forget that for additional discount you can use a manufacturer’s coupon along with store coupon. Consider grocery shopping as a business deal. Next time you go the nearby grocery store, try to maximize your profit. Don’t forget to have a goal. Don’t shop daily. Do it twice a month or once in a week. Don’t go for food shopping when you are tired, hungry, stressed, or depressed. Plan your shopping when you  [...]

Plan for long-term care The biggest retiree medical expense which is the long-term care is normally not covered by Medicare. Just to give an idea of the cost involved let us look at the numbers. As per Genworth Financial survey a room in a private nursing home last year cost an average of $76,460 a year which is $209 per day. Again costs differ in different states and can start from an average of $125 a day in Louisiana to $515 in Alaska. There are other not so expensive options but even they don’t come in retiree budget. Per hour on an average home-health aide cost $19 which by simple compounding amounts to $43,884 per year for 44 hours a week of care. One needs to shell out on an average $36,090 annually for a private one-bedroom unit in an assisted-living facility. Adult day care costs $15,236 per year, on average, for care five days a week as per survey done by Genworth Financial. So  [...]

Postpone retirement till you qualify for Medicare One easy way to take care of your medical bills given that you don’t have health insurance in retirement would be to continue being employed till you are 65 and hence are qualified for Medicare. However the challenge here is to stay employed in a company that provides health care benefits till you are 65 given the current economic scenario. But what if you are fired? Check out then if you are covered under spouse’s health plan and COBRA continuation coverage through your former company which typically covers you for the maximum of 18 months. Employees terminated between Sept. 1, 2008, and Dec. 31, 2009 are eligible for a 65 percent subsidy toward COBRA premiums for up to nine months under the American Recovery and Reinvestment Act passed in February. Research shows that if you retire before you are eligible for medicare then you are  [...]

Health care expenses are increasing day by day. Also planning for health care expenses in retirement is one difficult task given that it is very difficult to predict health care expenses in your old age. Many companies earlier used to provide life time coverage but now this is a thing of past for many. Even people who retired with life time coverage are finding that this facility has been scrapped on account of cost cutting pressures. This is what happened to my neighbour and close friend Jack. Jack who retired at the age of 65 after 34 years in General Motors as Sales and marketing manager was considered to be one lucky person. He retired with two of the most sought after retirement benefits- pension and lifetime medical coverage. But then recently General Motors due to cost cutting pressures scrapped his retiree health care facility. He however was not the only one some 100,000 white-collar  [...]

Bury your credit cards Credit cards if not used sensibly can land you in a soup with debt accumulated that you will end paying for many months. True by spending on credit card the burden is postponed in the short run however some day you have to pay the money back. Also the interest charges will add further burden to your wallet. If you are one compulsive shopper who cannot use credit card responsibly then we suggest that bury your credit card before embarking on that great shopping trip. Paying by cash will help you to keep a track of the amount you have spent vis-a-vis your budget. With credit card you just keep on swiping getting to know the pinch only a month later when you receive your statement. However if you have the ability to use credit card responsibly then it can be a great boon. Even then we suggest that you use credit card only when necessary to avoid spending too much.  [...]

Christmas shopping So you have embarked on that great shopping adventure. Before doing so we suggest that first  make a list of gifts you want to buy or else you would end up just wasting your time at the shopping centre. We suggest that you always keep a stock of extra gifts like chocolates else somebody unexpected drops in or you forget somebody. In fact the best strategy would be to start shopping as early as possible. Another important way to save money is to look for sales. Keep your eyes and ears open for sales. A lot of money can be saved by buying during sale season. Also almost everything you want eventually goes under sales. Shop as much as you can during the sale season. There are people who shop all year around for Christmas. Typically you get excellent bargain in the post Christmas sales. Why don’t you use these sales to accumulate gifts for the next Christmas. Post  [...]

In the current bleak economic scenario Christmas shopping can bring in lot of stress both mentally and financially. There is stress of buying expensive gifts for everyone, stress of last minute shopping, stress of long lines at shopping centres, stress of family get together and many more. The biggest worry that haunts many families is the worry of impending huge credit card bills. Below are few practical tips that will keep you smiling even after the festive season. First of all budget for Christmas Christmas for many families’ results in huge credit card bills that takes months to clear. These families are typically those who don’t budget and plan for Christmas. If you plan ahead half of your problem will be solved. Ideally we suggest that one should start planning for Christmas as early as the beginning of the year. However as the saying goes better late than never, there is still  [...]

The interest rates have reached rock bottom levels and probably everyone you know is taking a loan. The fed has also made it clear that the interest rates will continue to be at such low levels for some time in future. Hence you are all tempted to take a loan to buy that dream house or car. At the outset yes it does look like the perfect time to take a loan but we would still advice you to ask yourself few questions before taking the plunge. First of all ask yourself why you need the loan and whether you really need to take a loan. What is the purpose behind taking the loan. Is it to buy that dream house that you always wanted or that dream car.  If yes should I take a loan or I can finance with my savings which given the current low interest rate regime is anyways not earning much. We suggest that you clearly demarcate between necessity and luxury. If you want to take a loan for something  [...]

In today’s world credit card have almost become a necessity. In addition of dispensing away with the need to carry cash, credit cards facilitate a wide range of transaction over internet. Like any other financial tool credit card if used responsibly can turn out to be of great convenience. This financial convenience however can easily land you in a financial mess if not used properly. Below are few FAQ’s regarding credit cards. How to find the right card All credit cards are not the same. The selection of right card is entirely based on your requirement. The factors to be taken into consideration are interest rates, annual fees, other fees, grace periods and aspects like cash back or other rewards for using the card. Be sure to check out the fine print to be sure that there are no hidden charges like closure fees, overseas transaction fees. These fees can vary, but are normally disclosed  [...]