10 Money-Saving Resolutions

Posted by Bimbita on January-5-2012 under Save Money, Uncategorized

Here are 10 Money-Saving resolutions for the New Year 2012 which will help you keep track on your spending for your financial well-being. These new year resolutions will help you follow your monthly budget, there by encouraging you to spend less.

1. Don’t trade on emotions

2011 saw a lot of volatility in the markets. The earlier half of 2011 saw the markets climbing up, and the latter half saw the markets around the world crumble and fall. Don’t go for short-term investments and don’t trade on emotions. Stay invested and do contribute to the 401(k) under all circumstances.

2. Don’t invest on impulse

Many people invest on impulse or have the herd feeling. Don’t hit the buy or sell buttons on hearing the news or just because a friend of yours is doing the same. This can have disastrous consequences.

3. Lower the Mortgage

Interest rates are historically low, and if you can refinance the mortgage, then do so now. Remember a lower interest rate can save hundreds of dollars annually. For example, a 4% loan on $200,000 mortgage loan can lower the monthly payment by as much as $200 (approximately) as compared to a 5% interest rate.

Also, read How to save money on your Mortgage posted by us.

4. Take advantage of programs such as HAMP and HARP

For homeowners especially in states such as California and Nevada and Arizona, where foreclosure has been the highest, taking advantage of Federal programs such as HAMP and HARP can help them. It will save them money on their mortgages also their homes.

5. Start the College funds now

Coveted Education at Ivy League colleges cost upward of $50,000 annually. This expense is going to go up with each passing year. Start a college fund for them as soon as the children are born. One of the best ways to do that is by investing in the tax deferred 529. This will help you shoulder the financial responsibilities of sending the children to one of the best colleges.

Also, check out our post on How to turn hobbies into money-making source.

6. Start your retirement plans now

As of now, the maximum amount that can be put away in the tax deferred 401(k) plan is $17,000. Further, the government spending on social services is seeing a cutback. This means that the individual has to save more. Do so by stashing extra money, perks, allowances and bonuses away to the 401(k) account for a better future.

7. Stop maxing the credit card

Start paying for the credit card dues and stop using the credit card for every single purchase. There are many surcharges such as fuel surcharge that can add up and chip away at your hard-earned money. Don’t pay interest on the credit card dues.

8. Start making payments on time

Don’t make late payments for essential utility bills, insurance premiums, mortgage payments, school fees etc. make it before time and save you self from making the late payment charges.

9. Cook at home

Yet another money-saving new year resolution is that you make more meals at home and take a sandwich to workplace. Save on the coffee lattes and the extra calories by getting food from home. It’s cheaper and more nutritious.

10. Use coupons, discounts and membership cards

You read it right… coupons, discount vouchers and membership cards can save you money on your favorite place to shop, dine, watch a movie and for many other things.

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