Considering college and even programs offering an MBA online can introduce more anxiety if you’re already worried about your budget to begin with, it’s worth picking up a few tips that can ease your spending.  Take a deep breath (it’ll help relax you) and let’s get started…

Look Sharp without Spending a Bundle

Cutting back on a clothing budget seems counter-intuitive if you’re focused on looking good in class. But it’s not difficult to look great while spending a fraction of the money. Used clothing stores have grown in popularity, and a quick Google search is sure to result in more than one within a short drive from where you live. Buying used clothing doesn’t mean you have to look like a vagabond either. Many of these stores have a sort of boutique air about them and name brand clothing can be purchased cheaper than you’d think. It’s not uncommon to find gently used but normally expensive brands for 10% of the original price.

Spend Less Eating Out

It’s easy to lose track of how much money you’re spending on food if you’re not using a budget. Fast food may not seem expensive, but if you’re buying food every day it can add up fast. Five dollars a day may not seem like much, but that’s one hundred and forty dollars a month just on fast food. That’s money you could put toward the cost of textbooks and tuition. All the things you can buy with your own money instead of using college loan money will help immensely when it’s time to start paying back those loans later.

Healthy and Cheap Eating Alternatives

Saving money by making smart food decisions isn’t difficult. And you can avoid the college cliché of the ramen noodle diet. Making a grocery shopping trip part of a weekly ritual just requires a little initial willpower to establish a new routine. And it doesn’t have to take extra time either. Make a trip to the grocery after you’ve started a load of laundry. You’ll be back before your clothes are ready for the dryer. And when you’re in the grocery store, stick to the outer aisles where the vegetables, fruit, dairy, meats and fresh-baked breads are.

Avoid the inner aisles where all the high calorie processed food is. An exception to the inner aisle rule: pasta sauce, rice and beans. And a great way to eat the delicious food you buy doesn’t have to involve a lot of time either. Putting beans, a cut of lean meat, rice, water and herbs into an electric slow cooker for twelve hours will result in a delicious meal that you can eat with tortillas or just by itself. And the best part? You’ll have enough to last for a week and it required virtually no effort to prepare.

Spend Less on Entertainment

Just like fast food, spending money on entertainment can add up quickly. There are a lot of creative ways to still enjoy entertainment while spending less. Movies have become costly. When you add the price of tickets to popcorn and other theater treats, an average movie can move from a blockbuster to a budget killer in a hurry.

If you love movies but would like to cut out a lot of the expense, consider Netflix. For eight dollars a month, you can watch all the movies you like. If you typically go to the movies every weekend with a significant other, you may be spending forty dollars just for one movie. Netflix could save you a bundle. Remember, just because you’re in college doesn’t mean you have to sacrifice all the activities you love. Just be creative in cutting your spending while still keeping your enjoyment intact.

About the author: Lindsey is a professional writer living in the Indianapolis area. She writes extensively on college life and finances. Lindsey is currently finishing work on her master’s degree.

A financial disaster can seem like the end of the world if you're not prepared for it.

Disasters, be it natural, economic or personal, can strike anywhere and often without any warning. While large-scale disaster occurrences such as tsunamis, devastating earthquakes and world wide economic collapses are rare, the old adage wisely warns to hope for the best but to be prepared for the worst.

Even more common natural occurrences such as floods can also prove to be disasters and as recent events show, the possibility of extreme events can never be ruled out.

Recent disasters such as the tsunami in Japan and earthquake in New Zealand show that disasters hold the very real potential of overturning lives.

Disasters can damage valuable assets and property, displace families, affect businesses and disrupt income flows. During these difficult times, the immediate priority is often to protect your family and property.

However, beyond urgent steps to ensure survival and safety, it is also important to plan ahead to ensure that you and your loved ones will be able to cope financially in the aftermath of any disaster.

To ensure that you can cope if the worst happens, steps can be taken to mitigate the financial impact of a disaster aftermath.

Even with the best preparation, disasters can cause unavoidable and significant damage to assets and property.

The most viable option to guard against such losses is insurance for property owners, since being uninsured will almost certainly cause people affected by disasters to incur huge debts.

It is important to understand the terms of policies that you may already possess, as it is possible that policies do not give coverage for floods and other large-scale disasters. As such, there may be a need to look for insurance policies that offer full replacement cost coverage.

Guaranteed replacement costs insurance schemes which are fully updated can cover the cost of rebuilding your house, with improvements to protect against future disasters.

Disasters can disrupt lives in significant ways and can leave those affected with mountains of debt, either as a result of the disaster, or because the disaster interrupts income.

Insurmountable debt can add to the stress of the situation, but it is important to stay focused on the positive and know that there are solutions available to help in the face of disaster.

One solution, particularly if the debt is not excessively large, may be a credit card loan.

In difficult times, it is important to look for the lowest interest rates on any loan and with the right credit card, there may be no interest at all.

Realistically, it is best to expect that any loan will incur costs, but there are a number of credit card companies that now offer interest-free introductory periods for new customers.

This means that if a debt can be cleared within this period, there will be no interest on the amount borrowed.

Another alternative is the Crisis Loan, which are loans available for those who require urgent financial help in the aftermath of a disaster.

The loan can be used for daily living expenses and rent and board charges for those who have suffered damages from disasters.

The amount that can be loaned is dependent on individual circumstances, such as savings and pre-existing loans. Best of all, government-backed Crisis Loans are interest-free.

Other loans may provide a short term solution to problems occurring as a result of a disaster.

Loans vary greatly from provider to provider (read more here) so it is important to spend time researching the options available.

The term of the loan can make as much difference to the amount repaid as the interest rate. Work out what you can comfortably afford and choose a loan that allows you to clear your debt in the shortest time that you can manage. This keeps the interest that you have to repay to a minimum.

This article was written by Sam, a financial writer based in the North-West, UK.

http://www.moneysupermarket.com/loans/

*Requirement Number One*

Remember, the primary consideration that should be taken when considering an investment vehicle for your savings is safety. Personal savings is not risk capital. In other words, preservation of capital is requirement number one when considering various investments for your savings. You do not want to put your savings into currency trading or a new penny stock.

*Bank Savings Account*

This is the most common type of savings account. Typically, you can open a personal savings account for free at your local bank. There is generally a very low minimum account opening requirement. This is also the most liquid type of investment a person can make. Funds are completely available for withdrawal at any time. Furthermore, with ATM’s, people can now withdrawal funds from their savings accounts 24 hours a day, 7 days a week. The primary drawback of a bank savings account is that it offers the lowest interest rate of any investment vehicle.

*Money Market Account*

Local banks generally offer money market savings account on top of the standard savings account. A money market account will invest your deposits in U.S government debt, which is considered to be a 100% safe investment. The primary advantage of a money market account over a standard savings account is the interest rate. Typically, a money market account will offer more than twice as much annual interest than a standard savings account. The primary drawback, however, is liquidity. Money can be withdrawn from a money market, but it can take a few days.

*Certificate of Deposit*

This can be the best vehicle for those who know they will not need access to their funds for a specified period of time. A person can put money into a CD for an agreed upon time period, which generally ranges from 3 months to several years, and in exchange they will receive a very nice interest rate that is higher than both a standard savings account and a money market account. The primary disadvantage of a CD is that funds cannot be withdrawn before the previously agreed upon maturity date without paying penalties. Thus, this type of investment vehicle is best for investors who know they will not need the cash for a certain period of time but for those who have a well structured budget, it’s no problem.

All three of these savings accounts can help a person reach their savings goals, and oftentimes investors take advantage of all three at the same time.

Creating And Sticking To Your Budget Will Put Your On The Path To Financial Freedom

How To Stick To Your Budget – Sticking To Your Budget Tips

For many, a good budget is the first step on the road to financial freedom and is a critical wealth building asset.   And while creating a budget is a pretty simple thing, creating a budget that works in the real world that you can actually stick to is a bit trickier.  So today we’ll cover some tips you can use to stick to that budget of yours when sh*t happens and life tries to get in the way.

A budget doesn’t have to be a dirty word.  Most people seem to get this notion in their head that if they try to make a budget they won’t be able to continue doing the things they like.  For most people that’s simply not the case.  For example, if you have a weekly bowling night where you go and have a couple drinks afterwards, you can continue to do that – you just have to budget for it.

A budget doesn’t stop you from doing the things you enjoy doing – it just keeps track of how much money you can spend on those activities and where all your money goes.   However…

You Only Have So Much Money

While it’s true that they print more money every day, you probably only make a small portion of it and your funds probably have limits.

The first thing you need to know is how much money you make per month, take home, after taxes.   It may vary a little bit, but there is probably a certain amount you can count on making each month.  For example, you may work some overtime on certain months or you may get a Christmas bonus, but normally, you don’t.

I recommend only counting on what you get from your regular full time hours (or however many hours you usually work).  Don’t try to make your budget contingent on getting overtime are your job or you could have a serious shortfall if you don’t get it on any given month.

Once you have that number, write it down.  That’s your starting point for each month.

Now you need to know what your expenses are and what you spend money on.

To really make a budget that works, you need to figure out where every penny is going.  I know it sounds tedious but you can’t very well budget your money until you know exactly where your money is going.

I highly recommend keeping a notepad (or app on your phone) with your for one to two weeks and writing in it every single time you spend money, even if it’s only a dollar or two.

After two weeks, you should have a pretty good idea where your money is going and you’ll be able to create categories for your expenses.

Fixed Expense vs Variable Expenses

Your expense categories will get classified as either fixed or variable expenses.

Fixed expenses are the ones that don’t change from month to month.  Some likely examples are your mortgage (or rent), car payment, cable, cell phone, student loan, and car insurance.   Remember to write down all or your fixed expenses as I certainly didn’t list every possible fixed expense.

Variable expenses are the expenses you have that change from month to month.   You’ll probably have several of these as well.  Some examples are food, electric, gas bill for heat, entertainment, gas for your car, auto repairs and maintenance, clothing, gifts, medical expenses, home maintenance and repair, etc.

Remember Some Expenses Aren’t Due Every Month

There are a lot of expenses that you’ll have throughout the year that don’t come up every month.  You just need to figure out how much money you’ll need for them and save money each month so that when those expenses do come up, you have the money there for them.

Some examples are Christmas money or gift giving money, property taxes (if not paid by your Escrow account), car insurance (if paid quarterly of every six months), income taxes (if you often pay money to the IRS).

A Balanced Budget Is A Beautiful Thing

While the government may not be able to balance their own budget, if you’d like to get out of debt (or stay out of it) and achieve financial freedom, I highly recommend balancing your budget.

That means that all the money at the beginning of the month is assigned to go somewhere until there is no money left.

If you have money left after figuring out your expenses, that’s a good thing, but that money needs to go somewhere so that you end up with $0 showing up at the bottom of your balance sheet.  Save it, use it to pay off debt, just assign it to go somewhere.

If you run out of money before you’re done firuing in all of your expenses, then you’ve got a problem.  You’re going to have to reduce your expenses until you can get your budget to balance.  Remember that you can’t keep spending more money than you make – things just don’t work that way for long.

It may mean you have to get rid of cable or get rid of that expensive smartphone plan.  Maybe you need to live some place less expensive.  If you’ve cut costs every place you can think of and still need more money, then it’s time to start looking for a second part time job.  That budget has to balance and you need to either make more money or reduce expenses until you can make it balance.

The Slush Fund / Emergency Fund – Key #1

The slush fund (or emergency fund if you’re a Dave Ramsey disciple) is the most critical factor to making your budget work in the real world.  It’s there to cover those little emergencies you couldn’t have seen coming or that came up unexpectedly.

Initially, you’ll want to get $1,000 saved up to cover any dire emergencies that come up.  You want to do this before you start focusing on paying down your debts as having that $1,000 is an extremely important safety net and will help alleviate stress.

You can put it in a savings account of money market account or whatever you please just so long as the money is liquid as can be available anytime you need it.  i.e. don’t invest it in real estate or bonds that takes years to mature – the money is for emergencies and needs to be available when you need it.

Fun Money / Blow Money – Key #2

All work and no play makes Jack a dull boy!  Some months, sticking to your budget can seem like no fun at all.  That’s where having fun money comes into play.  This is money that you can do whatever you like with and here’s the things – it’s meant to be spent that month.  It’s not money that’s meant to be saved (you have other categories for that).  Spend it on whatever you like – frivolous or not – it doesn’t matter.  Fun money is for you to have fun with and enjoy completely guilt free on whatever you want.  Make sure you budget a little each month to have some as it’ll make living on a budget a whole lot easier and pleasant.

Cash Is King

While it may seem a little counterintuitive, using cash for all the variable expenses in your budget is the easiest way to stay within your budget.  Sure, that debit card or credit card might seem extremely convenient and easy to use.  While your debit card does leave a paper trail which is good, it’s way too easy to spend money using your card and it’s really easy to exceed your limits in any one category since you’re probably not going to get a separate card for each category you spend money on.

While I guess you could get a bunch of prepaid credit cards for each variable expense category where you’re going to spend money each month, at that point I think you’ll find it much easier to just carry the cash around.

So let’s just assume you’re going to use cash for all your variable expenses and that you’ll just keep the rest of the money in the bank for your fixed expenses and use your banks free online bill pay to pay them when they’re due (just about every bank offers this service for free, if yours doesn’t, switch banks).

If you get paid monthly, each time you get paid, that money gets divided according to your budget and then the cash for your variable expenses gets put into envelopes.

As you spend money, you only spend money from the proper envelope.  For example, if you go to the grocery store to buy food, when you get up to the register you only pull money out of the “food” envelope to pay for it.

Paying Off Your Budget If You Have Credit Card Debt

For the majority of people, credit card debt is going to be part of your budget and will need to be accounted for.  I recommend classifying your credit card debt as one fixed expense and try to get this paid off as quickly as possible.  That means you’ll need to stop using your credit cards.  Remember you’ll be paying cash for things and if you don’t have enough money to buy something, instead of whipping out the credit card, you simply don’t buy the item and you wait to purchase the item until you do have enough cash saved up.

Troubleshooting and Helpful Tips

If at first you don’t succeed…

If you’re new to budgeting, things might not work out as you expected the first month – heck, they probably won’t.  You’ll probably mess up the first month, and maybe the second and third as well.  But keep trying.  Sticking to your budget isn’t always easy so if you make a mistake, learn from it, and try to do better the next month.  In the real world things go wrong, and all we can do it try again to do it right.

Everybody needs to be on board (important for married couples)

If you’re married, it’s critical that both you AND your spouse be on board with the budget.  I can’t tell you how many times I’ve had people complain to me about all the money their spouse spends and they go on and on.  It’s because only one person is doing the budgeting and the finances while the other person remains blissfully ignorant.

Sure, one of you may be the person who pays the bills and handles the money, that’s fine.  However, when it comes to setting your budget, both of you need to discuss it and find one that both of you can work with.   Trust me, if you want peace and harmony in your household, both of you need to do this.

You can borrow from an account one month, but try to pay it back the next month.

This will probably happen to you frequently and this happens even to the best budgeters so don’t sweat it.  For example, let’s say there is a particularly hot summer month or cold winter month and your heating or cooling bill is more than you have budgeted for it.  For that month, you might be able to borrow the money you need for your bill from your auto repair account or clothing account but try to pay that money back to the proper account the next month.

Personal finance software can help

You don’t have to try to create a budget on a piece of paper and do all the math yourself (my father does, but I sure don’t).  I created my first budget with Excel and still use it for budgeting for some things though I use Quickbooks for most things these days (I run a small business so that’s what works best for me).  You may find a program like Quicken or Moneydance makes your life a lot easier as it can sync with your bank accounts, keeps track of all your money, and they each have a variety of financial calculators built in for tracking where your money is going and helping you budget for upcoming expenses.

Those envelopes may feel old school but they really work – use them.

Sure, carrying around separate envelopes for various expenses may feel silly especially for a guy who has limited space in their wallet (it did for me at first) especially when most people use their debit card for expenses these days, but trust me, it sure makes sticking to your budget easier.   If you’re a beginner these are essential and as you get more experienced you can experiment with other systems but you may find the envelope system just works best.

Saving Up For Big Purchases

When it comes to making big purchases like a used car (I recommend gently used for most people as new cars are not a good purchase – leasing is even worse), bedroom set, or high definition television, remember that you can still buy all of these things… as soon as you have the money saved up to buy them.  Just create a category in your budget for these things and a date when you’d like to purchase the item.  Then it’s just a matter of taking the total amount of money you need to buy the item divided by how many months until you get the item.  The number you end up with is the amount of money you need to save each month to be able to purchase the item.  This is how your grandparents probably purchased things and how I recommend you do it as it’ll keep you from taking on new debt and paying interest.

You’re not required to make your budget a monthly budget.

If a monthly budget just doesn’t work for you, you could make a weekly budget, a bi weekly budget or a quarterly budget or use a combination of multiple budgets just like business do.  However, since most bills are paid monthly and everybody gets paid at least once a month, we find that monthly budgets tend to work best for the majority of people.

It’s a sad fact of life in America that the cheapest food (some of which shouldn’t be called food at all) is junk food.

I can go to McDonald’s and get three items off the dollar menu for $3.21 yet a good salad will typically run $5-7.

Fruits and vegetables tend to be more expensive than a box of microwaveable burritos.

So how do you stick to your food budget while buying healthy alternatives.

First of all, I do not recommend diet pills or anything like that – waste of money.  Exercise is important and you can exercise for free.  If you have a gym membership, use it.  If not, get a good pair of running shoes (unless you want to try barefoot running) and start running.   If you want to work out at home, you’ll find plenty of free fitness videos on Youtube.  Start where you can.

Now let’s talk about food…

Meat

Where meat is concerned,  I highly recommend buying less meat. Red meat, particularly can be pretty expensive and it’s not all that good for you anyway. If you are going to devote some of your food resources to meat, buy some fish – you can usually find reasonably priced cod, tilapia, and once in a while even some tuna or salmon. You don’t need to eat it every day though, 2-3 times a week is enough.

Dairy

I know this won’t make me a popular person, but despite what you’ve probably been told all your life, milk and dairy products aren’t that good for most people. It actually makes most people congested and a little puffy. Personally, I recommend avoiding all of it, even yogurt. You can get all the calcium you need (forget RDA guidelines, they’re just flat out wrong) from fruits and vegetables – green leafy vegetables are particularly good sources of calcium.

Fruits and Vegetables

If you’re trying to get those pounds off and keep them off, I recommend making the majority of your foods fruits and vegetables. It can get a little pricey buying a lot of fruits and vegetables so here are some tips on how to do it.

First of all, I don’t get all that caught up in what’s organic and not organic. Yeah, I’d prefer organic and I’ll get it when the prices are decent, but most of the time, I just go with the regular stuff.

I also try to buy fruits and vegetables that are in season as they’re far cheaper. For example, I love pineapple and when pineapple is in season, you can often find it on sale for $2/each while other times of the year they’re $4 or $5. Just shop the sales and get the fruits and veggies you like.

I also recommend getting bananas. They’re good for you and they’re really cheap. I know some people who will eat up to 30 bananas a day and that’s all they eat because they’re cheap – if you buy them by the case, they’re usually even cheaper.

I also don’t mind getting frozen fruits and vegetables. I love putting frozen fruit in my smoothies and it’s often much cheaper than buying the fruit from the produce aisle, fresh and it tastes just as good in a smoothie. (My smoothies tend to contain fruit, and water or juice, and sometimes a little spinach)

Steer Clear Of Fast Food

Instead of stopping at the drive through for a quick and smiple meal that’ll be sure to add inches to your waistline and pounds to the scale, keep some nuts with you – peanuts are fine if you don’t have a sensitivity and tend to be reasonably priced.

Also, forget about all those specially packaged “diet friendly” foods and diet soda. They’re rarely good for you and are typically full of chemicals and they’re heavily processed. The best food for you is the way nature made it and the more we mess with it, the worse it tends to get for you so just buy wholesome, healthy foods, shop the sales, and do your best and you’ll be well on your way to losing weight without blowing your budget all out of proportion.

Let me give you an example of how to do it wrong first.

I was having a drink with my old college roomate and he was telling me how his wife had gotten on a coupon kick and she was really proud of herself for all the money she was saving.  She’d come home and tell him how she had spent $30 on items that normally cost $100.   There was just one problem – none of the stuff she bought were items they regularly used or even ever used.  She simply bought them because they were a good deal.    In this case all she’d really done was waste $30, not save $70 like she thought she did.

The savvy shopper, on the other hand uses coupons on items they use.

For example, last week the grocery store I frequent had a coupon for $1 off any item in the bulk natural foods section.  Before I saw the coupon I didn’t have any plans to get anything from that section, but I was planning on getting a package of dried cranberries.  So instead of getting a package of them, I went to the bulk natural foods section and got myself the cranberries and saved $1.

To save money, use coupons wisely - some coupons no matter how much you save aren't a good deal if you never use the product.

Let’s take another example with the huge discount website, Groupon.  Now I’m the first to admit that I like this website and that you can get some fantastic deals at local businesses.

If you’ve never been to Groupon, the idea behind that site is that every day, they post a one day deal from a business in your area and that deal is always at least 50% off.

You can get some fantastic deals to restaurants and it can be a great way to try new places and save money at the same time if you dine out regularly like I do – plus I love trying new places so its perfect.

However, you can easily get yourself into trouble if you just start buying any and every deal you see or you start purchasing services you never use.  For example, a lot of salons will market laser treatments and the like at great prices.  Now I never use that stuff so I don’t have any money budgeted for it.  That means that even if I get it at 50% or 75% off, I didn’t save any money by buying the deal – I only spent money that I wouldn’t have otherwise spent because I wanted to get a deal.

I understand it can be tough to say no to a good deal, it’s human nature.  But to save money and get out of debt you need avoid saying yes to every good deal that comes along and only say yes when it’s a deal you’ll actually use.

If you drink one of those every work day like I used to, you end up spending $25/week just on your morning coffee. That ends up being $1300/year! Now I’m not saying you need to stop drinking coffee or even make it at home (I’ll leave how to make better coffee than the coffee shop at home for another day). What I am saying is that if you switched to drinking coffee, you’d end up spending a lot less money each week.

Switch From Lattes To Coffee And Save $600 Per Year!

Of course, you can still have your favorite latte once in a while, just not every day. The solution I came up with was to have a latte every Friday and drink coffee the other days. At $2/coffee and $5/latte I ended up spending $13/week on my coffee shop coffee.

I certainly understand how switching from a sweet and creamy latte can seem pretty daunting when looking at a cup of black coffee… so here’s the trick – don’t try to switch to black coffee immediately – use plenty of cream and sugar. For example, when I first started making the switch I probably put an ounce of half and half and 9 sugar cubes in my coffee to sweeten it. And let me tell ya – at that point, the coffee is actually sweeter than your latte, mocha, white mocha, or even a caramel macchiato.

Once you’ve gotten to the point where you can handle coffee, just slowly start cutting back on the amount of sugar and half and half you put it in. You’ll eventually reach a point where you can drink coffee black.

Another tip for making the switch to coffee is to stick with the mild or mild-medium roasts. The really dark and bold roasts can be a lot to take right away and the darker the roast the easier it is to burn and even professional roasters burn dark roasts from time to time.

So if you’re looking to save some extra money and you’re a regular at your local coffee shop or Starbucks, this tip can save you $600 a year and you don’t even have to stop going (I’d rather be practical with my money saving tips than to tell you to just stop drinking coffee altogether – that’s really hard).

However, home ownership isn’t everything it’s made out to be.  For some, it’s a right of passage, something their grandparents did, something their parents did, and something they’ll do too.

However, for those on a tight budget, renting may be a better option for you as there are probably plenty of home ownership costs you didn’t think about when you’re renting an apartment.  Buying a home isn’t always the right choice and while the final choice is up to you, here are some of the hidden costs of home ownership that you’ll need to budget for or you could be SOL when that big bill shows up in your mailbox.

Costs Before You Move In

Moving – If you’re just moving across town and have friends with pickup trucks, moving costs will probably only total whatever you spend on a few boxes of pizza and a case or two of beer to keep the people helping you move happy.  However, if you’re moving to a different city and need to rent a moving van or hire professional movers, this can easily add up to thousands of dollars.

Inspections / Appraisals -  Before you can buy your home, there are a variety of inspections and such that need to be done and while some of them might be rolled into your mortgage, some of them will likely come out of pocket like the appraisal and inspection which can run $350-$500.

Painting / Renovation – If you’re purchasing a fixer-upper or even a home that’s in good shape but just needs a fresh set of paint, keep in mind that stuff all costs money.  A gallon of paint can cost $20 which will cover one room and if you don’t have all the supplies like rollers and paintbrushes, expect to spend a bunch more.  Any type of repair or renovation will cost much more.

Costs Once You Move In

PITI (Payment – Interest – Taxes – Insurance) – Depending on how your mortgage payment is setup, you might only be paying the payment plus interest.  If that’s the case, then you’ll need to make sure you’re saving money so you can pay your homeowners insurance and property taxes when they come due as well.

Furnishings – If you decide you need to get nicer or newer or more furniture when you move, this can get expensive in a hurry.  If you’re looking for good deals on nice used furniture, try Craigslist.

Water & Garbage &  Other Utilities – When you’re living in an apartment, there are certain little expenses that you don’t actually have to pay for separately, often water and garbage are included in your rent though some may have gas or electric paid for too.  Once you are in your own home, all of those costs fall to you.  Expect water to run $20-$30/month and garbage to run $15-$30/month.

Maintenance & Upkeep – This can be a big one especially for people with older homes.  All homes requires some maintenance here and there to stay in tip top shape and it all will come out of your pocket.  If you need to replace a furnace or air conditioner, expect to spend $2,000.  A new roof can run $6,000-$20,000.  You can’t  just call up the landlord if you have a leaky faucet or the hot water isn’t working – you’ll have to call up the plumber and pay the service call fee plus repairs.

Lawn Care – If you lived in an apartment you probably never had to think about mowing the lawn, raking the leaves, or shoveling the snow in the winter.   That means you’ll have to purchase a lawn mower, a rake, shovels, and possibly a snowblower.  Either that, or you’ll have to spend even more to pay someone to do it for you.  Also keep in mind, if there are dry spells during the summer that you may want to water your lawn to keep it looking nice which will mean a higher water bill.

Home Association Fees – While this won’t apply to everyone, if your new home is in an area with a Home Association, then you’ll have that monthly payment as well which could run anywhere from $80-$600/month.

Appliances – If your appliances are brand new, then they’ll be under warranty but once that warranty runs out, you’ll want to budget money for repairs and replacements.  Most major appliances these days (stovetops, ovens, dishwashers, refrigerators) are only expected to last 8-12 years.  So make sure you’ve got money saved up to replace or repair them when the time comes.

Pest Control – Unless you like the thought of living with bugs and the possibility of termites taking up residence in your home, you’ll need to do regular pest control to keep pests out of your home and the often means calling up an exterminator once or twice a year.

There are of course advantages to owning a home like it being yours and you can paint the walls whatever color you please and you don’t have to worry about having noisy neighbors above you or the ones below you pounding on the ceiling with broomsticks if they think you’re making too much noise.   Just keep in mind these extra costs as they need to be factored into your budget before you decide if you can afford to buy a home or if you should just continue to rent.

Some people have failed to practice some basic saving tips on how they can reduce their expenses because they hate to be restricted when it comes to their lifestyle. Everybody should understand that unless they are super rich, they should always practice easy ways to save money. You cannot tell whatever circumstance life may throw your way in the future and it pays to be financially prepared. Besides, leading a wasteful life is a common mistake people make and they have discovered that the consequences can be grim.

Being a wise spender doesn’t mean you have to be tied up with prices and other figures all the time. By continuously practicing some easy ways to save money constantly, it will become a good habit in the end. You may find yourself saving a few bucks even without knowing it.

Here are some effortless saving tips you might want to try for yourself:

• Groceries are important for any household because this is one of the easiest places where you can indulge in too many items. Making a list is a staple advice, but you should look beyond that. Instead of sticking to the selections on your list, you can try and substitute your products for cheaper items. Fruits and vegetables are few of the items you should always check. Remember that off-season goods are more expensive than the ones currently in season.
• One of the most effective ways in saving money is to buy in bulk. This can only be applied to items that do not perish. Toiletries products should be bought in sets because they are frequently used and will often be used up in a few days. Unless you are going to feed an army, keep your hands off any food items that are sold in bulk. This would include condiments and other food add-ons.
• Always check your bank balance before you charge anything to your account. Over draft fees can cripple you because most banks would charge a high penalty for this one. You should often make sure that you have a balanced book. Keep your receipts with you as a reminder for items you have charged.

Credit Counseling

If you are not disciplined enough to create a workable budget and stick to it, cannot work out a repayment plan with your creditors, or cannot keep track of mounting bills, consider contacting a credit counseling organization. Many credit-counseling organizations are nonprofit and work with you to solve your financial problems.

Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.

Regardless of your particular need, selecting the right credit counselor is vital. Unfortunately, some organizations, including some that label themselves “nonprofit credit counseling agencies,” can be underhanded and more concerned with helping their own bank accounts than helping yours. An April 2005 report by a U.S. Senate investigating committee reported, “Some new entrants to the industry, however, have developed a completely different business model – a ‘for-profit model’ designed so that their non-profit credit counseling agencies generate massive revenues for for-profit affiliates.

Consumers need to know and understand the differences when selecting a credit counselor. They must know the warning signs. The following information can serve as a valuable guide to help consumers “know the difference” when choosing a credit counseling agency.

1. Ask the BBB (Better Business Bureau) and other third parties about the agency. A number of independent or government organizations work to protect consumers by collecting complaints and making the information public. The BBB is one such agency.

2. Be skeptical of extravagant promises. Some organizations claim they can “fix” a bad credit report or credit score. Others say they can settle a consumer’s debts for relatively little money. If an agency sounds too good to be true, it probably is. Reliable credit counselors help people manage their money better and, if appropriate, can set up a realistic repayment plan that is acceptable to creditors.

3. Make sure counseling sessions are substantial. The length of a counseling session will vary from agency to agency, but consumers need to make sure the counselor takes enough time to understand your personal situation

4. How does the agency protect consumers’ money? Consumers need confidence that any funds they hand over to an agency for debt repayments are secure. Consumers need to ask for evidence that an agency is bonded or has insurance that protects their money from fraud or the agency’s own financial difficulties.

Debt Management Plans

If your financial problems stem from too much debt or your inability to repay your debts, a credit-counseling agency may recommend that you enroll in a debt management plan (DMP). A DMP alone is not credit counseling, and DMPs are not for everyone.

You should sign up for one of these plans only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money. Even if a DMP is appropriate for you, a reputable credit counseling organization still can help you create a budget and teach you money management skills.

In a DMP, you deposit money each month with the credit counseling organization, which uses your deposits to pay your unsecured debts, like your credit card bills, student loans, and medical bills, according to a payment schedule the counselor develops with you and your creditors. Your creditors may agree to lower your interest rates or waive certain fees, but check with all your creditors to be sure they offer the concessions that a credit counseling organization describes to you.

A successful DMP requires you to make regular, timely payments, and could take 48 months or more to complete. Ask the credit counselor to estimate how long it will take you to complete the plan. You may have to agree not to apply for — or use — any additional credit while you are participating in the plan. As above, here are also things to look for when looking for a Debt Management Plan.

1. ALL payments sent to the agency should go to creditors and be disbursed in a timely manner. Some agencies may take the entire first month’s payment and call it a “fee” or “donation.” Consumers should ask whether this is the agency’s policy. It is also a good idea to ask whether the agency holds payments or disburses them shortly after receipt. The success of a DMP relies upon full and timely payment to creditors to reduce a client’s debt.

2. Does the agency provide a full range of services, or is it just trying to push a profitable Debt Management Plan? Consumers should seek out an agency that provides a full range of services and tailors plans to each consumer’s personal circumstances.

3. The full amount of Debt Management Plan repayments should go to creditors. Some agencies may take a portion of a consumer’s debt repayment and call it a fee or “donation;” others may even take the entire first month’s payment. Consumers should find out how much of each monthly payment is going to creditors and how much is going to the credit-counseling agency. The full amount of those payments should be paid to creditors to reduce the client’s debt.

4. Make sure the agency will work with all of your creditors. Before entering a DMP, consumers should make sure the agency would work with all of their creditors. Some agencies may refuse to work with creditors unless the creditor agrees to a certain level of financial support for the agency. No agency can require creditors to recognize a DMP program, but the agency should be willing to reach out to every creditor.

If debt has consumed you, and your life is getting more difficult by the day, then Debt management and credit counseling are probably two very important choices to consider. If you have severe debt, you may be eligible to enroll in a Debt Management Plan. It takes approximately 36-60 months to repay debts through a DMP. This is sometimes the best alternative to debt freedom.