The following report was originally published by Bloomberg columnist, Courtney Schlisserman, on Aug 24, 2010 6:51 PM ET:
Sales of existing houses plunged by a record 27 percent in July as the effects of a government tax credit waned, showing a lack of jobs threatens to undermine the U.S. economic recovery.
Purchases plummeted to a 3.83 million annual pace, the lowest in a decade of record keeping and worse than the most pessimistic forecast of economists surveyed by Bloomberg News, figures from the National Association of Realtors showed today in Washington. Demand for single-family houses dropped to a 15- year low and the number of homes on the market swelled.
Stocks tumbled and Treasury securities rallied, sending yields on 10-year notes to the lowest in 17 months, on concern the industry at the heart of the financial crisis will lead the nation back into a recession. Recent reports on jobless claims and manufacturing point to a slowdown in growth that may prompt the Federal Reserve to consider additional moves to boost the economy.
“Today’s data do not bode well for home prices,” said Michelle Meyer, a senior economist at BofA Merrill Lynch Global Research in New York. “There is a decent chance we reach a new bottom for home prices. There’s going to be a prolonged, painful drop.”
The Standard & Poor’s 500 Index fell 1.5 percent to 1,051.87 at 4 p.m. in New York, the lowest close since July 6. The yield on the benchmark 10-year Treasury note dropped to 2.49 percent, while the two-year note yield touched a record-low 0.4542 percent.
Record Low
The pace of existing home sales is the slowest since comparable records began in 1999. The agents’ group revised the June sales figure down to 5.26 million from a previously reported 5.37 million.
Economists projected sales would fall 13 percent. Estimates in the Bloomberg survey of 74 economists ranged from 3.96 million to 5.3 million. Previously owned homes make up about 90 percent of the market.
Purchases of single-family homes also dropped 27 percent, the biggest one-month decrease in data going back to 1968. July’s 3.37 million annual rate was the lowest since May 1995.
Compared with a year earlier, existing home sales fell 26 percent before adjusting for seasonal patterns.
The median price increased 0.7 percent to $182,600 last month from July 2009.
Fed Bank of Chicago President Charles Evans today said that while the housing market and U.S. economy have shown signs of improvement, recovery isn’t yet assured.
Fed Action
“Although there are some signs of general economic recovery and some evidence of home-price stabilization, we are certainly not out of the woods,” Evans said in a speech in Indianapolis before the housing report. The recovery “seems to be extremely modest” and the central bank’s “accommodative policy is appropriate,” he said in reply to an audience question.
The number of previously owned homes on the market rose 2.5 percent to 3.98 million. At the current sales pace, it would take 12.5 months to sell those houses, the highest since at least 1999 and compared with 8.9 months in June. The months’ supply of single-family homes at 11.9 months was the highest since 1983, the NAR said.
“The problem with housing is there’s actually a lot of shadow inventory,” said Constance Hunter, chief economist at Aladdin Capital Management LLP in Stamford, Connecticut. “The Fed must enact a second quantitative easing strategy,” Hunter said, referring to additional central bank purchases of assets like Treasury securities to pump up the money supply and ease credit.
Broad-based Drop
Sales last month fell in all four U.S. regions, today’s report showed. Foreclosures accounted for 22 percent of total purchases in July, while short sales, where banks agree to take less than the value of the mortgage, made up another 10 percent, the NAR said.
Purchases will be “soft for at least two more months as the housing market works through the effects of the end of the tax credit,” Lawrence Yun, the group’s chief economist, told reporters at a press conference.
A government incentive of up to $8,000 boosted sales earlier in the year, pulling forward demand. Housing’s inability to build on the temporary boost generated by government assistance is one reason the economy is having trouble strengthening.
‘Excellent Pricing’
“Demand is low across the country,” Richard Dugas, chief executive officer at Pulte Group Inc., said in an Aug. 20 interview with Bloomberg Television. “You have record-low interest rates and excellent pricing, but consumer confidence eased. We really need the economy to improve and job creation to take hold before people feel comfortable stepping into a home.”
Pulte is the largest U.S. homebuilder by revenue.
Robert Shiller, a professor at Yale University and chief economist at MacroMarkets LLC in Madison, New Jersey, said the July sales plunge was “anomalous” because it came one month after the original deadline for closings to take advantage of the government tax credit. The deadline for closings was later extended until the end of September.
“Let’s not overreact to these latest sales numbers,” Shiller, co-creator of the S&P/Case-Shiller index of property values, said in an interview with Matt Miller on Bloomberg Television’s “Street Smart. “You can’t compare this number to the other existing sales numbers.”
Administration’s Plans
To help prop up the market, the Obama administration will offer $1 billion in zero-interest loans to help homeowners who’ve lost income avoid foreclosure as part of $3 billion in additional aid targeting economically distressed areas.
The Department of Housing and Urban Development plans to make loans of as much as $50,000 for borrowers “in hard hit local areas” to make mortgage, tax and insurance payments for as long as two years, according to an Aug. 11 statement. The Treasury Department will also provide as much as $2 billion in aid under an existing program for 17 states and the District of Columbia, according to the statement.
Wednesday, May 4, 2011
Saturday, December 19, 2009
Sunday, November 15, 2009
Tax Credit Extension
TAX CREDIT EXTENSION
INFORMATION SHEET
If you have any questions about your specific situation or would like to discuss how
you may benefit from this program, please call or email me. I’ll be happy to help.
Tax Credit for Homebuyers
First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not
owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Current Owners: The tax credit program now gives those who already own a residence someadditional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
Tax Credit Versus Tax Deduction
It’s important to remember that the tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.
Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!
Higher Income Caps
The amount of income someone can earn and qualify for the full amount of the credit has been increased.Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible
TAX CREDIT EXTENSION INFORMATION SHEET
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sale price of $800,000.
Remember, the new tax credit program includes a number of details and
qualifications. For more information or answers to specific questions, please call or
email me today. In addition, you may be able to benefit from additional housing related provisions,including the following:
Tax Incentives to Spur Energy Savings and Green Jobs
This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
Landmark Energy Savings
This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.
Repairing Public Housing and Making Key Energy Efficiency Retrofits To
HUD-Assisted Housing
This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.
Expanding Housing Assistance
This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.
INFORMATION SHEET
If you have any questions about your specific situation or would like to discuss how
you may benefit from this program, please call or email me. I’ll be happy to help.
Tax Credit for Homebuyers
First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not
owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Current Owners: The tax credit program now gives those who already own a residence someadditional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
Tax Credit Versus Tax Deduction
It’s important to remember that the tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.
Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!
Higher Income Caps
The amount of income someone can earn and qualify for the full amount of the credit has been increased.Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible
TAX CREDIT EXTENSION INFORMATION SHEET
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sale price of $800,000.
Remember, the new tax credit program includes a number of details and
qualifications. For more information or answers to specific questions, please call or
email me today. In addition, you may be able to benefit from additional housing related provisions,including the following:
Tax Incentives to Spur Energy Savings and Green Jobs
This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
Landmark Energy Savings
This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.
Repairing Public Housing and Making Key Energy Efficiency Retrofits To
HUD-Assisted Housing
This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.
Expanding Housing Assistance
This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.
Wednesday, July 29, 2009
Trending Upward? U.S. Home Prices Improve for Fourth Consecutive Month
RISMEDIA, July 29, 2009-Data through May 2009, released by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices, one of the leading measures of U.S. home prices, show that, although still negative, the annual rate of decline of the 10-City and 20-City Composites improved for the fourth consecutive month in 2009.
The 10-City and 20-City Composites declined 16.8% and 17.1%, respectively, in May compared to the same month last year. These values are improvements over April’s data, which show annual declines of 18.0% and 18.1%, respectively. After 16 consecutive months of record annual declines, beginning in October 2007 and ending in January 2009, the indices have now shown four consecutive months of improvement in annual returns.
“The pace of descent in home price values appears to be slowing,” says David M. Blitzer, chairman of the Index Committee at Standard & Poor’s. “There is a clear inflection point in the year-over-year data, due to four consecutive months of improved rates of return, after the steep decline that began in the fall of 2005. In addition to the 10-City and 20-City Composites, 17 of the 20 metro areas also saw improvement in their annual returns compared to those of April. Looking at the monthly data, 13 of the 20 metro areas reported positive returns; and the 10-City and 20-City Composites reported positive returns for the first time since the summer of 2006. To put it in perspective, this is the first time we have seen broad increases in home prices in 34 months. This could be an indication that home price declines are finally stabilizing.”
“While many indicators are showing signs of life in the U.S. housing market, we should remember that on a year-over-year basis home prices are still down about 17% on average across all metro areas, so we likely do have a way to go before we see sustained home price appreciation,” Blitzer added.
As of May 2009, average home prices across the United States are at similar levels to where they were in the middle of 2003, indicating that the three years of appreciation that occurred from 2003-2006 were all given back in the following three years. From the peak in the second quarter of 2006, the 10-City Composite is down 33.3% and the 20-City Composite is down 32.3%.
In terms of annual declines, the numbers remain relatively somber with all metro areas and the two composites in negative territory, and 16 out of the 20 metro areas are reporting double digit declines. Las Vegas, Los Angeles, Miami, Phoenix, Seattle and Tampa posted their lowest index levels in May since their respective peaks. From peak to trough Phoenix and Las Vegas are the worst off, down 54.5% and 53.4%, respectively. More upbeat news is seen in the monthly data; Dallas and Denver have reported three consecutive months of positive returns. Atlanta, Boston, Cleveland, San Francisco and Washington D.C. each reported two consecutive months of positive returns. Eight of the 13 MSAs reporting positive monthly returns for May were greater than +1.0%.
For more information, visit http://www.standardandpoors.com/.Read more: http://rismedia.com/2009-07-28/trending-upward-us-home-prices-improve-for-fourth-consecutive-month/#ixzz0MekohvJM
The 10-City and 20-City Composites declined 16.8% and 17.1%, respectively, in May compared to the same month last year. These values are improvements over April’s data, which show annual declines of 18.0% and 18.1%, respectively. After 16 consecutive months of record annual declines, beginning in October 2007 and ending in January 2009, the indices have now shown four consecutive months of improvement in annual returns.
“The pace of descent in home price values appears to be slowing,” says David M. Blitzer, chairman of the Index Committee at Standard & Poor’s. “There is a clear inflection point in the year-over-year data, due to four consecutive months of improved rates of return, after the steep decline that began in the fall of 2005. In addition to the 10-City and 20-City Composites, 17 of the 20 metro areas also saw improvement in their annual returns compared to those of April. Looking at the monthly data, 13 of the 20 metro areas reported positive returns; and the 10-City and 20-City Composites reported positive returns for the first time since the summer of 2006. To put it in perspective, this is the first time we have seen broad increases in home prices in 34 months. This could be an indication that home price declines are finally stabilizing.”
“While many indicators are showing signs of life in the U.S. housing market, we should remember that on a year-over-year basis home prices are still down about 17% on average across all metro areas, so we likely do have a way to go before we see sustained home price appreciation,” Blitzer added.
As of May 2009, average home prices across the United States are at similar levels to where they were in the middle of 2003, indicating that the three years of appreciation that occurred from 2003-2006 were all given back in the following three years. From the peak in the second quarter of 2006, the 10-City Composite is down 33.3% and the 20-City Composite is down 32.3%.
In terms of annual declines, the numbers remain relatively somber with all metro areas and the two composites in negative territory, and 16 out of the 20 metro areas are reporting double digit declines. Las Vegas, Los Angeles, Miami, Phoenix, Seattle and Tampa posted their lowest index levels in May since their respective peaks. From peak to trough Phoenix and Las Vegas are the worst off, down 54.5% and 53.4%, respectively. More upbeat news is seen in the monthly data; Dallas and Denver have reported three consecutive months of positive returns. Atlanta, Boston, Cleveland, San Francisco and Washington D.C. each reported two consecutive months of positive returns. Eight of the 13 MSAs reporting positive monthly returns for May were greater than +1.0%.
For more information, visit http://www.standardandpoors.com/.Read more: http://rismedia.com/2009-07-28/trending-upward-us-home-prices-improve-for-fourth-consecutive-month/#ixzz0MekohvJM
Monday, March 23, 2009
Green Home Construction
It is a very good time to start a green home-construction project, based on several factors: Land prices are cheaper, the number of certified green contractors out there is growing and green is going mainstream as global warming and energy issues are on the front burner. Additionally, federal tax incentives for some new-home construction elements have recently tripled following the recent passage of the stimulus package.
Instead of the previous 10-percent incentives offered, you can now write off 30 percent of the costs of buying and installing solar panels, solar water heaters, fuel cells and small wind-energy systems and geothermal heat pumps. There are dollar caps on some of these credits. See the Environmental Protection Agency Web site for the latest information. Moreover, it's pretty clear that the latest green heating and cooling systems typically pay for themselves in energy savings over several years.
Several states are offering additional green tax credits as well. Builders can also get tax credits for constructing energy-efficient new homes and should be able to pass some of those savings on to you indirectly. Of course, you can go as green as your imagination and budget allow, ranging from the use of solar energy, natural lighting, energy-efficient appliances and low-emission paints to radon-resistant construction, resource-efficient landscaping and use of recycled or salvaged, locally processed building materials. It's important to check out your local building ordinances to see what is allowed in your area. Most municipalities have become far more progressive in this area.
But be wary. Some contractors instantly mark up a green project significantly without justification merely because people expect to pay more. Carefully screen your contractors. The United States Green Building Council's site has a rating system for promoting the design and construction of high-performance green houses that also features builder resources, green-certified contractor lists and a green-home guide. Also go to the Green Home Guide Web site and click on "resources" for availability of local, state, federal and utility incentives. Another organization, Build it Green, promotes green practices in California but also features universal guidelines and checklists that may help.
Be sure to keep up to date on what's being offered. By the time you start construction, there may be even more green incentives available.
Instead of the previous 10-percent incentives offered, you can now write off 30 percent of the costs of buying and installing solar panels, solar water heaters, fuel cells and small wind-energy systems and geothermal heat pumps. There are dollar caps on some of these credits. See the Environmental Protection Agency Web site for the latest information. Moreover, it's pretty clear that the latest green heating and cooling systems typically pay for themselves in energy savings over several years.
Several states are offering additional green tax credits as well. Builders can also get tax credits for constructing energy-efficient new homes and should be able to pass some of those savings on to you indirectly. Of course, you can go as green as your imagination and budget allow, ranging from the use of solar energy, natural lighting, energy-efficient appliances and low-emission paints to radon-resistant construction, resource-efficient landscaping and use of recycled or salvaged, locally processed building materials. It's important to check out your local building ordinances to see what is allowed in your area. Most municipalities have become far more progressive in this area.
But be wary. Some contractors instantly mark up a green project significantly without justification merely because people expect to pay more. Carefully screen your contractors. The United States Green Building Council's site has a rating system for promoting the design and construction of high-performance green houses that also features builder resources, green-certified contractor lists and a green-home guide. Also go to the Green Home Guide Web site and click on "resources" for availability of local, state, federal and utility incentives. Another organization, Build it Green, promotes green practices in California but also features universal guidelines and checklists that may help.
Be sure to keep up to date on what's being offered. By the time you start construction, there may be even more green incentives available.
Monday, January 12, 2009
How Ready Are You for 2009?
Now that the holidays are over and a new year has begun, now is the perfect time to make sure you are ready for 2009. Here are five things you should do this month that will make your life easier in the months ahead:
1. Clean Out the Clutter: You keep saying you'll do it...go ahead and do it. Spend an hour going through your old files, and shred those receipts, bills, and statements you no longer need, like old ATM receipts and utility bills, paystubs more than a year old, and receipts for things that are not deductible.
2. Get Organized: While you're at it, create new files for your 2009 tax-related papers and receipts. Examples of categories include medical expenses, gift and charitable donations, and home improvements.
3. Check the Gift Card Fine Print: If you received gift cards as a present over the holidays, use them soon. Some have expiration dates, or the amount on the card may get reduced over time. In addition, in the current economy, retailers that go out of business may not honor gift cards.
4. Do Some Review: Review your various insurance policies - life, home, auto, etc - to make sure the coverage you have is still the best fit for your needs and situation. To save on cash out of pocket, you might even consider raising your deductible to get a lower premium.
5. Do Some Reflection: Take an honest look at your schedule and responsibilities and make sure you are taking the time you need to stay healthy and feel good. Don't feel bad about actually scheduling specific blocks of time to exercise or spend special time with family and friends, to ensure it actually happens. This will make everything else you have to do this year easier...and more enjoyable, too!
1. Clean Out the Clutter: You keep saying you'll do it...go ahead and do it. Spend an hour going through your old files, and shred those receipts, bills, and statements you no longer need, like old ATM receipts and utility bills, paystubs more than a year old, and receipts for things that are not deductible.
2. Get Organized: While you're at it, create new files for your 2009 tax-related papers and receipts. Examples of categories include medical expenses, gift and charitable donations, and home improvements.
3. Check the Gift Card Fine Print: If you received gift cards as a present over the holidays, use them soon. Some have expiration dates, or the amount on the card may get reduced over time. In addition, in the current economy, retailers that go out of business may not honor gift cards.
4. Do Some Review: Review your various insurance policies - life, home, auto, etc - to make sure the coverage you have is still the best fit for your needs and situation. To save on cash out of pocket, you might even consider raising your deductible to get a lower premium.
5. Do Some Reflection: Take an honest look at your schedule and responsibilities and make sure you are taking the time you need to stay healthy and feel good. Don't feel bad about actually scheduling specific blocks of time to exercise or spend special time with family and friends, to ensure it actually happens. This will make everything else you have to do this year easier...and more enjoyable, too!
Thursday, November 20, 2008
Money Saving Tips
Start saving money every day by paying attention to your finances. Money can be an ugly word, so stay on top of your funds and where they are being spent and saved. Find ways to eliminate unnecessary spending and reduce monthly bills. Balancing your household budget and living within your means is an essential step to living a life without worrying about money. Below are some helpful money saving tips.
Cook and eat in more. Instead of eating out for lunch and/or dinner, save huge amounts of money by creating a simple menu, buying the groceries and cooking at home. You can create very easy dinners in 15 minutes or less and the cost is a fraction of what it costs to eat out. Prepare a sandwich or leftovers the night before and bring your lunch to work.
Bike, walk, carpool and save gas money. If you even replace a few trips a week with a bike ride or walking you will save money on gas and you will also increase your exercise! ”Get rid of it!” Live this motto and start counting your savings. Anything you don’t use such as club memberships, magazine subscriptions, credit cards with monthly fees, etc., cancel them. If you don’t use them it’s like throwing money out the window.
Pay yourself. Can’t figure out where your money goes every month? Feel like you should have extra but it gets spent on meaningless goods or impulse buys? Start saving those extra dollars and treat it like you are paying a bill, but instead are actually depositing a ‘paycheck’ into a savings account, mutual fund, 401k, etc. Eliminate credit-card debt. Of course this is easier said than done, so here are some tips to help you. Start by making a spreadsheet of your credit card bills, their interest rates and what you owe. Pay off the higher interest rate cards first, once paid off, cancel them. Once your debt is paid off completely, look for credit cards with low interest rates and no monthly fee. From there on out pay off the entire balance every month and use credit cards sparingly. If you have high credit card debt, transfer your credit card balances to a card with a lower interest rate ASAP. You’ll save $730 if you transfer a $2,000 balance from an 18% card to an 8.25% card and then pay off your balance at a rate of $50 a month. Avoid late fees by contacting your credit card company and changing your due dates so you have the funds to pay your bill on time.
Kick the habit. Quit smoking and save more than $2,000 a year if you go from being a pack-a-day smoker to a non-smoker. You’ll also qualify for significantly cheaper life insurance rates after you quit.
Monthly Money Savings
Save $.50 a day in loose change . . .$15
Cook and eat in more. Instead of eating out for lunch and/or dinner, save huge amounts of money by creating a simple menu, buying the groceries and cooking at home. You can create very easy dinners in 15 minutes or less and the cost is a fraction of what it costs to eat out. Prepare a sandwich or leftovers the night before and bring your lunch to work.
Bike, walk, carpool and save gas money. If you even replace a few trips a week with a bike ride or walking you will save money on gas and you will also increase your exercise! ”Get rid of it!” Live this motto and start counting your savings. Anything you don’t use such as club memberships, magazine subscriptions, credit cards with monthly fees, etc., cancel them. If you don’t use them it’s like throwing money out the window.
Pay yourself. Can’t figure out where your money goes every month? Feel like you should have extra but it gets spent on meaningless goods or impulse buys? Start saving those extra dollars and treat it like you are paying a bill, but instead are actually depositing a ‘paycheck’ into a savings account, mutual fund, 401k, etc. Eliminate credit-card debt. Of course this is easier said than done, so here are some tips to help you. Start by making a spreadsheet of your credit card bills, their interest rates and what you owe. Pay off the higher interest rate cards first, once paid off, cancel them. Once your debt is paid off completely, look for credit cards with low interest rates and no monthly fee. From there on out pay off the entire balance every month and use credit cards sparingly. If you have high credit card debt, transfer your credit card balances to a card with a lower interest rate ASAP. You’ll save $730 if you transfer a $2,000 balance from an 18% card to an 8.25% card and then pay off your balance at a rate of $50 a month. Avoid late fees by contacting your credit card company and changing your due dates so you have the funds to pay your bill on time.
Kick the habit. Quit smoking and save more than $2,000 a year if you go from being a pack-a-day smoker to a non-smoker. You’ll also qualify for significantly cheaper life insurance rates after you quit.
Monthly Money Savings
Save $.50 a day in loose change . . .$15
Cut soda/pop consumption by 1 liter a week . . .$6
At work, substitute 1 coffee for 1 cappuccino . . .$40
Bring lunch to work (saving estimated $3/day) . . .$60
Eat out 2 fewer times a month . . .$30
Borrow, rather than buying, one book a month . . .$15
Bounce one less check a month . . .$20
Maintain checking account minimum to avoid fees . . .$7
Pay credit card bill on time to avoid late fee . . .$25
Pay off $1000 of credit card debt, reducing interest . . . $15
Save up to $233 a month! Courtesy of AmericaSaves.org
For more information visit: http://www.bankrate.com/, http://www.americasaves.org/, www.simpledebtfreeliving.com/moneysavingtips.html
Save up to $233 a month! Courtesy of AmericaSaves.org
For more information visit: http://www.bankrate.com/, http://www.americasaves.org/, www.simpledebtfreeliving.com/moneysavingtips.html
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