Personal Finance Advice

You can save a lot of money by cutting back on your expenses, but you can’t get away with not buying food.  You need food to live, and whether you spend your grocery money to bring food home or if you instead blow your entire food budget on eating out you still need to buy the stuff.  There is just no getting around it.

It makes sense that when you are looking to get your personal finances in order your first impulse may be to look at how you are already spending your money and figure out ways to cut back on the money you spend.  Since there is simply no avoiding the need to buy food then you should follow a few tried-and-true tips that can save you quite a bit of money when the time comes to head to the grocery store:

Use basic ingredients.  It’s usually cheaper to buy the ingredients for the meals you want to prepare and then make it yourself as opposed to buying a boxed or frozen variety that you merely need to toss in the microwave and slap on a plate.  Using less processed foods may also save you money in the long run because it’s healthier, and that equals less illnesses and medical bills.

Use coupons.  Clipping coupons may seem like a waste of time, but coupons can actually save you quite a bit of money.  Remember that coupons aren’t always the absolutely best way to go - after all, a comparable generic item may cost less than a brand name item with a coupon - but if you can find coupons for items you already buy on a regular basis then you’re going to save money.  You’ll save more if you can find a store that doubles or triples coupons.

Look for sales.  Although you don’t want to waste gas by chasing grocery sales all over town, it still makes a lot of sense to peruse the ads of the local grocery stores and find out who is selling what at the best price.  Base you choice of grocery store on where you can save the most money, and don’t let customer loyalty sway you into accepting higher prices just because it’s the place you have always shopped.

Try generic items.  It’s delusional to think that all generic items are just as tasty or effective as brand names…some generic items are pretty nasty.  You should  try a variety of generic items at one time or another to see if you can find some items that cost less and are just as good as name brands because these items are out there.  Look for ingredients that go into meals comprising of several ingredients, because you won’t even notice the generic ingredients once it all put together.  If you buy a generic brand distributed by the store and you don’t like it then check with the store to see if there is a money-back guarantee. 

Lose your fear of leftovers.  What is the key in saving money on groceries? Don’t be afraid to eat from the same dish for a few meals.  For example, a delicious lasagna makes a great meal, but the leftovers can also make a great lunch for the whole family the next day or can be frozen and become an entree in a couple of weeks.  If you use proper food storage methods for your leftovers then they can last long enough to fill your stomach for a few meals.  It’s a great way to stretch your grocery money.

Omit meat.  Meat is expensive, and there is no reason why you have to include it in every meal.  Instead of making beef burritos make them bean, and instead of filling omelets with ham fill them with cheese and green peppers.  The ideas are limitless, and it can be a healthy alternative to meat with every meal.

Also be sure to compose a grocery list before you go and to avoid giving in to impulse buys while you’re walking through the store.  It doesn’t make sense to research your shopping, compose a list, and walk into the store armed with coupons if you’re only going to start filling your cart with whatever catches your eye.  Just like with every other aspect of spending and personal finance, you have to learn to control yourself.

There isn’t a much easier way of getting paid than direct deposit.  On payday, your pay goes directly into your checking or savings account and it’s usually immediately accessible unless you owe your financial institution some money for being overdrawn or something similar.  Employees like direct deposit because they can get their hands on their money faster, and employers like direct deposit because it takes a lot of work out of paying employees.

If you don’t already have direct deposit, here are some reasons why it might help your personal finances:

Your money is in the bank instead of in your hands.  For some people, there is nothing worse than a wad of cash in their hands because their first inclination is to spend it.  In some cases it’s better to never actually see the money, but instead to just have it appear in your account.

It simplifies your personal finances.  Have your pay deposited directly into your account and then have your recurring bills automatically deducted from the same account.  It’s the most streamlined way to take care of your personal finances, and all you have to do is stay up to date on your check register.

Many banks give perks to direct deposit customers.  If you have direct deposit then you may not have to pay some of the fees that other customers have to pay for the same services.  Most banks have a checking account option for customers that is completely free as long as there is a monthly direct deposit into the account.

You can’t lose a direct deposit.  With paper checks, prepaid payroll debit cards and cash you always run the risk of losing them or misplacing them.  You can’t do that with direct deposit.

If you do have direct deposit, keep these things in mind:

Always make sure it’s there before you start spending.  Mistakes can happen, so before you start writing checks or making payments just do a quick check to make sure that the money is actually in your account.  You don’t want to wind up overdrawn just because the payroll office at your work made a mistake.

Keep track of your money.  With everything automatic it may be quite tempting to stop tracking your money and logging in your spending like you should.  Keep in mind, however, that a big portion of effective personal financial management is keeping track of everything.  You should still write out a budget and you should still keep a check register up to date.

If your work doesn’t offer direct deposit, have a talk with your boss and see if it can be instituted.  It’s such an easy and streamlined way to receive your pay that you should definitely take the time to get access to it.

Do you remember the good old days when instead of a barrage of gift cards you would receive checks, cash, or even an actual gift when the time came for a celebration? Of course, a gift card can be a fantastic gift if you actually like the retailer that the card is for and if the card doesn’t come with a variety of usage fees attached to it, but what do you do with gift cards that you don’t really care to use?

Option One: Regift.  Even if you don’t like the store that the gift card is for, chances are you know someone who does.  Hold on to the card and send it on to someone else for a birthday gift or holiday gift.  Just be sure that there is no inactivity fee or other telltale sign that will pop up making it blatantly obvious to the recipient that she isn’t the first owner.

Option Two: Sell or Swap.  There are websites online designed to allow people to sell or trade unwanted gift cards.  Using these sites you won’t earn 100% of the value of the card, but you may be able to make some money from selling the card or at least trade it for a card of a little less value, but from a retailer you actually will visit.  Some online auction sites also feature sections where you can sell unwanted gift cards, but check to make sure the card is indeed transferable before advertising the fact that you’re selling it.

Option Three: Use it.  Why not give the retailer a try? Unless you have a ethical stance against the retailer there is no reason why you shouldn’t go ahead and venture into the store to try to find something that you’ll like within the price range of the gift card you received.  Who knows…maybe you’ll discover that you actually do like the store.

Option Four: Toss it.  This is certainly a last resort, and shouldn’t be done unless you can’t even find a charity willing to take the card off your hands.  Sometimes a gift card is for such a small amount of money - and for such an obscure retailer - that you just want to toss it into the trash.  Although this is an option, it isn’t the best one.  Like it or not, this is essentially the same thing as tossing money into the trash.  Hand the card off to a stranger on the street instead of throwing it away.

If you actually do like the retailer that the card is for, keep these things in mind:

Hold on to the card until it’s completely depleted.  If the card is for a retailer you use frequently, place the card in your wallet and use it each time you visit until it has a zero balance.  Even if the card only has a couple of dollars left on it after your initial purchase you should still keep it and use it the next time.  If you don’t, it’s like giving free money to the retailer and it’s not utilizing the gift to the highest extent.

Register the card if it’s for a large amount.  If you get a gift card with a particularly generous balance then you should check to see if the card can be registered online with the retailer.  This will allow you to receive a replacement card if the original gets lost or stolen. 

Stay in the price range of the card.  If the card is for a retailer you adore - yet can hardly ever afford to shop at - then try your best to keep your purchase within the budget of the amount set on the card.  A $30 gift card at Godiva will get you a nice box of truffles…or it will augment the payment of a $120 chocolate collection.  The best gift is one that you don’t have to reach into your own pocket to help pay for, so stay within the price range of the gift card.

If you’re the one buying gift cards for your friends in family, try buying cards that can be used in a variety of places such as mall gift cards or prepaid credit cards.  These can be great gifts as long as they don’t have a ton of fees associated with them.