Financial Tips Archives - Page 2 of 4 - NeighborWorks Columbus, GA

Creative Ways to Save

It is hard to save money. And that’s especially true if you are living paycheck to paycheck in a time where the prices of many things have increased.
While saving may seem out of reach, don’t despair–you can still reach your goals, but you may be forced to get a little creative. We have some ideas that just may help, but before we share those, let’s just remind you that none of this is really possible without some budgeting and basic money management. If this is where you are, check out one of our past resources here.

Now, let’s get creative:

Saving on food
Meal plan–making a meal plan is the first step to saving on groceries you don’t need each month. There are several methods of meal planning, including listing each and every meal, coming up with a rotating list, or even following a basic idea such as “taco Tuesday” or “meatless Monday.” The method we recommend? Whatever works for you!
Shop with a list–one of the biggest ways to rack up an unusually high grocery bill is impulse buying. Making a list (that matches your meal plan) and avoiding those eye-catching items, will help you save money at the checkout.
Shop generic–we all have brands we love, but one of the best ways to save is to embrace the generic brands that every grocery store has. Sure, there may be some items you just have to have a certain brand of, but maybe be choosy about what those are for you.
Buy in bulk–there are certain things most households use a lot of. These we recommend buying in bulk either at a warehouse store or even just when they happen to go on sale at the grocery store of your choice.
Eat (and drink) at home–Skipping on eating out is key to saving. Pack your lunch, skip the fancy coffee, and stay in for dinner. Remember you don’t have to do these things forever, but when you have a goal in mind this will help you reach it.

Saving on transportation
Carpool–One simple way to save money is to drive less. And one simple way to do this is to carpool to common places. Maybe you take turns driving with your favorite co-worker? (Plus, you’re packing a lunch anyway, so that will help you avoid the temptation to hit the drive thru). Win-win!
Walk/Bike–it’s not always possible to ditch your car completely, but there might be some situations where you could walk or bike. Columbus has many new trails. Maybe you could occasionally replace an errand you would normally drive to with an alternate mode of getting around.

Saving on electricity
Use LED lights–LED lightbulbs are more energy efficient and therefore, will help you save on your power bills.
Unplug–You can save about 5% on power by unplugging certain items when you are not using them. This includes things like electronics, computers, cable boxes, chargers, printers, and smart home appliances.
Time your chores–Georgia Power lists its peak hours as 2 to 7 p.m. It’s recommended you attempt to time the use of your major appliances before or after those times for greater efficiency.
Adjust thermostat–According to the Department of Energy, you can save up to 10% on your electric bill each year by turning your thermostat up by 7-10 degrees for 8 hours during the day. If you work outside of the home, this is a perfect time to do that.
Make use of ceiling fans–In warmer months, ceiling fans can keep you cooler, reducing the need for you to run your AC as much. Likewise, in cooler months, ceiling fans can circulate warm air, taking a load off your heating system.

Other ways to save
Ditch disposables–while convenient, the fees of paper plates, utensils, and napkins can add up.
Check on subscriptions–sometimes we sign up for things and forget about them. Other times, we just sign up for too many things. Either way, are there any monthly subscription services that are no longer serving you or you could do away with in the name of reaching a goal?
Review bills–every once in a while, it’s a good idea to review some of your common bills. These include things like your insurance or phone plans. Make sure you review these every couple of years as the competition just might offer a better rate for you.

Make extra money
Side hustle–sometimes, the best way to save is to just find new ways to add to your income. Side hustles are a great way. There are literally hundreds of ways to create a side hustle, and that all depends on what your individual talents are: tutoring, freelance services, handyman jobs, lawn care, house sitting, pet sitting. These possibilities are endless.
Sell items–Do you have any items in storage or that you just aren’t using anymore? Hosting a yard sale if you have enough of them or selling them on places like Facebook Marketplace are great ways to add extra income. Extra clothes that are still in good shape could be sold in consignment stores or even online consignment like Poshmark.

While we’ve compiled a lot of ideas here, this is by no means exhaustive. We hope this gives you at least one idea to implement as you work to reach your goals. You’ve got this!

Is financial freedom within reach?

This month we celebrated Independence Day, but let’s talk about a specific kind of freedom: financial freedom.

Financial freedom may mean different things to different people, but ultimately it comes down to taking ownership of your finances–making your money work for you and not the other way around.

Many of us live paycheck to paycheck, and even if that describes you, you can achieve financial independence.

Let’s break it down a bit.

1. Budget

You can’t reach financial freedom without knowing exactly where you stand with your money. You need to take an honest assessment of how much income you make each month and what your expenses are. This can take a bit of a learning curve if you are new to it, so don’t get discouraged. There are several free apps available to help you think about all your possible expenses in a month, but when you are just getting started it’s definitely easy to forget something.

To get you started, write out all your income. If your paychecks aren’t always the same amount, try to make your best guess and aim on the lower side. That way you will not spend more than you know you will make.

Then, try to list all your expenses. Start with the things you can count on (like your basic bills). Then add in groceries, household supplies, doctor visits, medicines, eating out, entertainment, subscription services, clothing and debt payments. Don’t forget special events coming up like birthdays or holidays. Everyone won’t have all these expenses and some may have other categories but this is just to get you started.

2. Set Goals

Now that you’ve budgeted, you have a clear idea of your money (which by the way may take a month or two to get accurate. If you aren’t used to tracking your groceries or how much you spend on cleaning products, for example, that may take a few tries to get right). It’s time to set some financial goals. If you need to save money or pay down some debts, you now should have an idea of where you can cut out some expenses, like possibly not eating out as much or spending less on entertainment or streaming subscriptions. Shopping at thrift stores instead of clothes new off the rack. If you need to save money, find ways to temporarily sacrifice for your ultimate goal.

Here are some great goals to start with:

Pay down debts, especially if there are any in collections or any with very high interest rates
Build an emergency fund of at least $1,000
Start saving for something bigger, like a down payment on a new home
Invest in your future

3. Grow your income

There are only so many expenses a person can cut. And if you are living minimally, you may be out of options (you can’t cut your power bills and house payments, unfortunately)! It may be time to consider other sources of income.

You don’t necessarily have to get a higher paying job, though that could always be an option. You could consider taking up a side hussle or selling some of your goods on Facebook marketplace. You could even have a yard sale.

All of these things are great ways to either temporarily or for the long run make some extra money.

4. Celebrate milestones

When working toward a financial goal, especially if it’s a lofty one, it can be easy to get discouraged or lose sight. So it’s important to celebrate victories along the way, no matter how big or small they are! For example, if you are paying down multiple debts, reward yourself with a little treat when you pay down the first one.

If you are saving $1,000, celebrate being half way there.

No matter how lofty or little your income is, financial freedom is within your reach. Give yourself a lot of grace, and take one step at a time. This is a marathon and not a sprint, and with determination and careful planning you can achieve your goals.

Keeping your information safe online

With the convenience that technology provides for things like online banking, shopping, and bill paying—there comes another side we all have to keep in mind: security.

There are countless things to consider when it comes to protecting your information. Fortunately, we’ve compiled a list of some of the big ones to at least get you started.

Don’t bank in public

When you’re out in public, resist the urge to login to your online banking apps, especially if you are connected to Wi-Fi. These are not secure platforms, which would make it easier for a hacker to intercept your banking info. Make sure you save these things for a secure and trusted network.

The same would be true for any bill-paying or shopping that requires you to enter your personal financial information. Make sure you do this from home or somewhere that can be trusted.

Create strong passwords

Just about everything we do online requires a password, and while it’s tempting to make them short and easy to remember, that is not the most secure. As a general rule of thumb, passwords should be long, strong, and difficult to guess.

This means, don’t use personal information like your name, birthday, or email address. The safest thing to do is use a password generator, but you can also make secure ones yourself keeping them long, using a combination of letters and characters, and capital and lowercase letters.

It’s also best to not use the same password for every site, as tempting as that may be. To store your many different passwords, you can use a password manager.

Multi-factor authentication

Many websites require multi-factor authentication. This is basically just using another method to verify you are who you are. While it can be frustrating if you’re in a hurry to enter a security code or click on the number of “traffic lights” in a picture series, this is ultimately a small price to pay for a secure Web experience. When prompted to set up, we recommend you do it.

Don’t click on links you can’t verify

Many of us are bombarded with texts and emails asking us to click a link. Some of it is stuff we signed up for through a business, but other things are from scammers. You should never click on a link that isn’t from a trusted person or company and that you don’t know exactly where it will go.

Beware especially with email as scammers will often pose as someone you know, using another name. You can always verify this by looking at the email address of the sender.

Login to your accounts regularly

Make sure to login to your online banking and/or credit card apps on a regular basis. Try to do this everyday if possible. That way you will quickly notice if someone made a purchase using your cards, and you can call your bank or credit card company right away.

Holiday shopping when inflation is high

With the prices of just about everything on the rise, you may find yourself wondering exactly how you will shop for your loved ones this season.

Before you hit up any Black Friday deals, take a minute to read these tips that we hope will help you prioritize your spending!

1. Budget

Unfortunately, the holiday season doesn’t give us a pass to ignore our regular bills. It’s important to make sure all your usual expenses are covered before you consider any extras. Once you have an idea of what those are, then you can start to look at all the other things you may want to spend money on this season. Make sure you have a plan for things like gift giving, food for parties or holiday celebrations, holiday party expenses, and clothing for different events, so these things don’t take you by surprise later.

2. Prioritize

Once you have a picture of your upcoming expenses, you will be able to more clearly see what you are able to spend. It’s never a good idea to go into debt for holiday spending, so if you don’t quite have enough to cover your whole wishlist you may need to prioritize.

Decide what is the most important for you to spend time and money on this season and start there.

3. Get creative

If your holiday plans are loftier than your income allows, don’t despair. There are some ways to get creative to boost your income.

You could sell some of your gently used items that you are no longer using on Facebook marketplace, eBay, or maybe even sell to consignment stores.
Another good way to cut back is by taking a look at some of your monthly subscriptions. Are there any monthly subscriptions you pay for like streaming services, gym memberships, or anything else you could put a pause on to save you some money in December. Plus, this is a busy season, so you may not have as much time for those things anyways.
Tap into your talents and find odd jobs to boost your income. Are you a master at baking? Maybe you can sell some baked goods. Perhaps you can take on babysitting or yardwork? Maybe you are good at odd jobs? Here is a list of side hustles to help you brainstorm.

4. Plan

With a plan, you are empowered to save money. Rather than picking one store, take your time browsing online to compare prices. You can also check big retailer flyers to see when their best sales are coming up. Everything isn’t always cheaper on Black Friday!

With more time, you also can take advantage of resale sites like Facebook Marketplace or thrift stores. This is a great way to get a good deal, and those big stores will always be there if you don’t find what you are looking for on a sale site sooner!

Shopping online can also help you avoid impulse purchases, but even if you choose to shop in person, just know that stores are set up to encourage you to buy extra!

We hope some of these tips can help you keep your spending stress down this season!

Is it better to save or pay off debt?

Tax season might be an exciting time for those who are getting a large refund. While it may be tempting to make a fun purchase, it not usually the best use of money.

But when it comes to making prudent spending choices, it can be hard to decide the best way to help you achieve your financial goals. Specifically, is it better to pay off debt or save money?

Let’s dive into some ways to help you navigate this decision!

First, consider what types of debt you have:

Generally speaking, getting rid of debt is a good thing! And most of the time, it makes good sense to pay off your debts.

However, there are some types of loans that are significantly more problematic than others. Loans with high interest rates, like credit cards or title loans, should be paid as soon as possible. Otherwise, they will end up costing way more in the long run.

It’s also especially a good idea to pay down debts if you have any loans in default. These need to be paid ASAP.

Paying off debt can also help improve your credit score and make it easier to save money and reach more financial goals in the long run.

Second, take a look at your financial situation.

It’s important to assess your current financial situation. For example, if you have little to no money saved away in an emergency fund, it is worth putting some aside for that. This of course would help ensure that you won’t find yourself in even further debt in the future.

You also may know you have some important necessary expenses coming up and need to take advantage of an opportunity to save. Perhaps your vehicle needs a big repair or you need to purchase another. Setting aside money for things like this can sometimes outweigh the benefits of paying off debt early.

You may find a happy medium is best.

Everyone’s situation is different, but after examining your debt and financial goals, you may be able to use your refund to both save and reduce debt.

That could look like putting aside money for emergencies and then paying toward some loans. Maybe you make a necessary repair to your vehicle and put the rest to tackle one of those high-interest loans.

We hope this gives you some things to consider!

Creative Ways to Save

Is financial freedom within reach?

Keeping your information safe online

Holiday shopping when inflation is high

Is it better to save or pay off debt?

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