7 Things I Learned from Grandma About Frugal Living
Want to save money and pay off debt? Try living like your grandparents.
Get the latest tips and tricks to help you save money effectively
Want to save money and pay off debt? Try living like your grandparents.
Plan ahead and travel where it’s in off season, and you can save big money on your family trip this summer.
There are plenty of good deals out there if you just take time to sniff them out.
You may be tempted to buy the bigger house — but don’t forget all the extra costs that come with it.
After years of assuming the worst of dollar stores, I visited a Dollar Tree and found items I actually buy and can save on.
You don’t have to spend that much money to wish someone well.
Lose your debts in a way that works for you.
You can save money by having some household items sent directly to your door.
It’s gone up in Florida and down in California this past year.
Women are more honest employees, yet are still paid less.
Buy used items and sell what you have when your baby’s outgrown them.
From food to bathing suits, there is no reason to pay top dollar to celebrate.
App Qoins allows you to spend your leftover change on debt. It’s a game “changer.”
As an Amazon Prime user, this is how I’ll get the most bang for my buck on this year’s Prime Day.
Housing affordability is a major concern, but that doesn’t mean home ownership is out of reach. From Chicago to Dallas, the salary required to afford a home might be less than you’d expect.
One of the biggest shopping days of the year is coming soon. Here’s how to do it right.
Over a 30-year mortgage, homeowners with better credit pay less.
Home prices are rising and inventory is low. We still need a roof over our heads.
If you don’t pay off your credit cards every month, you’ll probably pay more.
Do you earn less than $65,000 a year? You can still buy a home here with a 10 percent down payment.
It turns out high income isn’t the best predictor of how people save.
Buying a laptop that someone else got rid of may not be the best idea.
Save on everything you need to have more for what you want while traveling.
The worst way to get out of debt is to pay the bare minimum. Find out how much that would hurt where you live.
These books can make it easy for you to keep your own books.
We love our pets, but that doesn’t mean we have to go broke for them to be well-fed.
Eating gluten-free isn’t cheap – don’t gut your wallet to feed your gut.
From prescription drugs to home ownership, tech startups are trying to make money by saving you money.
Rather than saving energy, daylight saving time prompts us to spend more money.
It’s one of the largest purchases you’ll ever make. But saving significant dollars isn’t hard.
After those pricey winter holidays, take time to straighten up your financial situation.
Last-minute shopping for appliances and installation can cost you in more ways than one.
We paid down $50,000 in less than a year with these frugal living tips.
Upgrade credit, a simple trick, money with pets, your paycheck and more.
The price of buying groceries from home starts with a Prime membership, not to mention delivery fees.
Most think he’ll cut funding to the source of retirement income they were relying on.
Don’t blow your budget when you blow up bad guys.
Cutting back on these items because you’re paying down debt may actually end up costing you more.
His father used them, and Matt remembers them well.
A reader has some debt, but no savings. Thankfully, he has several excellent options.
If you’re convinced that all thrift store clothes are shabby, it’s time to fine-tune your shopping style.
Millennial couples talk about how they plan to retire more than couples twice their age.
Seriously, you won’t believe it. This is NOT a click-bait headline.
Seeing what all their friends post drives millennials to spend carelessly.
You’re better off saving that money for an emergency and to pay other debt.
We all want our big day to be unique — even if it’ll cost us as much as a luxury car.
Here’s how to stop throwing money down the garbage disposal.
Despite misconceptions that they’re wasteful with their money.
Adding another dog or cat to the family costs more than just a bigger bag of food.
Pets don’t cost as much as kids, but they still require some financial planning.
Anytime you can set up a system to work without you, it’s more likely to work. If you have to remember to set aside money each month before you spend it, it’s less likely to occur. So, you want to make savings automatic.
The best idea is to ask your HR department to split the Direct Deposit for your paycheck. Allocate 5-10% of your income to deposit directly into your savings account while the rest goes to checking. This way, you don’t even have to think about setting money aside. Otherwise, set up a recurring monthly transfer from your checking to your savings account.
Your first savings goal should be to have a $1,000 balance that you maintain in your main savings account. This should be the minimum balance that you try to keep in the account so you have funds to cover most emergencies. Then you can use the funds if your car breaks down, you have an expensive home repair or an unexpected medical bill.
As you’ll see below, this is not the full financial safety net you need. But it’s a good, solid first milestone that you can aim to achieve.
A true emergency fund is big enough to cover all your bills and necessary budgeted expenses for up to 6 months. This means you can be out of work due to unemployment or a medical issue for half a year without facing financial distress. You don’t have to rely on high interest rate credit cards to cover your expenses or take out costly payday loans.
Total up all the necessary expenses in your budget and multiply by three. This gives you the next savings milestone you should aim for after your basic $1,000 emergency fund.
A traditional savings account typically has an interest rate of less than 1%. In fact, 1% is considered a “high rate” when it comes to savings accounts. The problem is that such a low rate means it takes a long time for your money to grow. You’ll be lucky if you ever achieve your goals with such little growth.
In order to save money effectively, you must make those savings grow effectively. This means you need better growth rates than your basic savings account can offer. Without more robust investment tools, it will be hard to achieve stable long-term savings.
If you don’t like the risk of the stock market and you prefer to start small, look to cash equivalents first. Cash equivalents refer to any investment that you can easily convert to cash. This actually includes basic checking and savings accounts, as well as investments like Money Market Accounts and Certificates of Deposit.
Money Market Accounts function like savings accounts, except they usually have higher minimum balance requirements. The applied interest rate is usually higher, too. In fact, most MMAs work on a tiered rate system. This means the more you save and the higher your account balance, the higher your rate of return, too.
CDs are a type of short-term investment that also offer better rates for saving. You deposit a certain amount of money that matures over a certain term; typically, terms range from one week up to five or ten years. At the end of the term, you withdraw the money or let it roll over for another term. This type of savings can be good to hit specific goals like we will describe below.
Think about savings in terms of specific goals that you want to reach. For instance, you would have your basic savings and emergency fund, long-term retirement savings, and then savings that you allocate for certain purposes. This will help you save strategically and ensure the money doesn’t get spent.
So, let’s say you want to buy a car next year. You have $3,000 in savings that you want to use for the down payment. If you put that money into a 12-month CD, it can grow for a year and it’s not sitting in your savings account where it can get spent. Allocating savings this way helps ensure you can pay for specific goals with less need for financing. You can also pay for things like vacations without high interest rate credit card debt coming home with you.
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