Joe's Money

Once you have your emergency bubble inflated and your debt paid off, you can pay cash for almost anything.  This can have its up side.

I have heard of multiple discounts given simply for paying with cash Vs. a credit card or check card.  The reasoning for this is merchants have to pay a fee plus a percentage of the sale just for taking the card.  The percentages are usually pretty low but if you run tight margins it can add up.

I have heard this specifically at gas stations.  Many times, gas is very low margin only making a few cents per gallon of gas.  Now if the credit card processor is taking only a few percent, they just ate up your profits.  By offering a cash discount in between the retail price and the loss price after the fees, they can save more profits.  Pretty simple for not having to do anything!  More times than not its the mom and pop shops doing this and it will usually be prominently advertised.

Another one that can save you tons is on labor work.  This can be anything from having your roof replaced to having someone cut the lawn.  Many times, the smaller contracting firms have to put materials on credit.  If you pay cash, they may be able to negotiate a better discount if its cash your paying with.  This never hurts to ask.  A few months back, I was able to bring a roof bid down from $9800 to $9200 and get much better materials in the process.

Everyone needs some time to get away from it all and relax sometimes.  Take a look at some of these tips and save big on your next vacation.

User Broker Travel Sites

Using vacation broker websites like Expedia, Orbitz, etc can save you tons.  I have the best luck with Expedia but I don’t travel too often.  Take a look at a few and see what you can find.  The idea for these sites is pretty simple, sell unsold seats and rooms for a discount.  Some money is better than no money.

With these broker sites, it is also easy to compare different travel times throughout the year.  If you are flexible on the days you leave and return, you can save a fortune.  I often go to Las Vegas and Sunday through Thursday seems to be the best bet most of the time.

Be sure to compare prices for extra days.  Last time we booked Vegas, we were only going to stay for 3 days.  Then we ran the price and realized it was literally the same price to stay for a fourth night.  They were running a promo for buy three nights, get the fourth free.  Even when that deal is not running, many times the extra night will only cost about $20.  Why not stay for the extra day?

Travel at Non Peak Times

Obviously, some destinations are more desirable at different times in the year.  However, if you are willing to go against the grain on this one, you can save a fortune.  I have literally seen half price vacations at non peak times.

Try to avoid Holidays and weekend, rates are almost always higher at those times.

Look for Discounts On Area Attractions

A quick google search can save you lots of money.  Before you take off for your destination, take a look at the areas attractions and activities.  Many times you can get discounts or deals when booking in advance.  Many attractions also post coupons on their websites or elsewhere online.  Again, a simple google search will help you find whats available.

Don’t Waste Money on Poor Attractions

The internet is your friend.  Looks for reviews of attractions you are thinking about.  Once you arrive at your destination, it can be much more difficult to find reviews on the attraction of choice.  Use this tip and stay away from the things that are not worth the price.

I am confident that we can agree that simply put, you must spend less than you make to build wealth.  Whether rich, poor, or somewhere in between, if you often spend more than you make, you will never accumulate wealth.  Although this concept may be equally as important as some of the things listed below, it is not the number one reason people fail to build wealth over their lifetimes.

Reason No. 9:  Procrastination

Many people fail to invest in their own financial future until it’s too late.  While you are young, you have a excellent opportunity and a definite advantage over the older folks because you have time.  The reasons behind not starting young vary quite a bit and are wide ranging.  Also, age seems to have an effect on why you fail to save.  While young, people in their twenties are just entering the workforce and tend to indulge themselves with the hottest trends, electronics, cars, etc.  Once you hit your thirties, maybe a young family is preventing you from putting away as much money as you would like.  At this point you may be living check to check and this is where debt problems stem.  Forties hit and you may have children in college or unforeseen medical expenses.  By the time you hit your late fifties, it is already probably too late.  Compound interest no longer has time to grow as much as it would have had you saved earlier.

Reason No. 8: Lack of Discipline

Most people find it difficult to save because they constantly buy, and very seldom, save.  It is much easier to say yes to your impulses.  Those who are able to say no, are going to have a much easier time building wealth.  Most are lead by advertising and the ease of being able to swipe a credit card.  The “I don’t need to pay for it now” ideas kick in.  Worry about it now, not later.  Until you find the power to say no, you will never get ahead.  Stop trying to keep up with the Jones’.

Reason No. 7:  Inadequate Protection Against Unexpected Expenses

Life unfortunately throws a lot of curve balls at us throughout the years.  May it be a water heater, car repair, or medical expense, these can all put a damper on your financial well being, and quickly.  Implement an emergency fund to cover these unexpected expenses so you don’t fall back on using credit.

Reason No. 6:  Poor Debt Management – Borrowing too Much

Lack of patience can cause you to turn to credit to get what you want NOW.  Again, learning to say no now, will save you tons of money in interest payments as well as buying items you may not have really wanted to begin with.  When using credit, unless you can afford to pay the item off in full at the end of the month, the item can end up costing much more than the original sticker price.

Reason No. 5:  Failing to Adjust How You Live

When people are used to a certain lifestyle or are used to spending, it is very hard to break the trend.  Try to find a way to break the routine. Otherwise, you will never change, and never seek the financial freedom you were looking for.  Don’t be afraid to try something new.

Reason No. 4:  Lack of Foresight

Winners have the ability to look beyond the immediate and into the future.  Although some may see your visions as dreams, don’t forget you need to have a vision to make your dreams come true.  You are not going to win the lottery.  Set a goal and create a path to help you get there.  Look into the future, find what you want, and plan how you will get there.

Reason No. 3:  Using Time Poorly

You’ve heard it a million times, time is money.  You have a choice to spend your time on watching TV all day or taking a look at how you will finance your future.  No one is going to knock on your door and give you the magic formula needed to plan for yourself.  Once time has been wasted, it’s gone.  Use it to your advantage.  Plan what you desire.

Reason No. 2:  Failure to Plan

My old man said it best, if you fail to plan, you plan to fail.  It couldn’t hold more true.  If you don’t plan what you want, you have essentially removed all hope of ever getting where you want to be.  According to polls, only 5% of people plan and only 2$ have their plans written down. Planning and writing your goals down can be a great motivator.  Everyday when you get up and look at your goals, you are setting the mindset that the reward is later and you can and will stick to the plan.  If you don’t have a plan or goals, how can you succeed?

Reason No. 1:  Lack of Knowledge

This should actually read lack of willingness to gain knowledge.  Most people give up after reading one thing they don’t quite understand.  Make an effort to read more about financial literacy.  This subject can be found in countless books and online websites.  The knowledge is there for the taking.  It is up to YOU to take in and process it.  This will help you find what is best for you.  No one, including financial advisors, have a better picture of your financial future than you.  Turn off the tube and read a book.

Stop living paycheck to paycheck.
Stop blaming your financial problems on anyone and everything besides you.
You are the only one that can control your future.
Find motivation to plan the rest of your life and stop living like a sucker!

This seems like a obvious money saver yet some of us never buy anything used.  You can buy almost any item second hand.  This could include things like video games, movies, appliances, TVs, clothing, and cars.  Buying your car used will save you thousands.

There are great resources out there to help you save a fortune by buying used.  You can find almost anything online these days.

Craigslist

Craigslist has more than one use.  Obviously, you can find tons of used good here ranging from lawn mowers to video games, to light fixtures for your home.  Most on craigslist sell at a pretty good discount compared to buying new in the store.  More times than not, you can find what you’re looking for here.

Craigslist also has a services section.  Need some work done around the house?  Check it out!  I have seen great bargains to be had here.  Lawn and snow services, plumbers, computer technicians, etc.  You name it they are out there.  You can even use the wanted section to have them find you rather than the other way around!

Another great section on Craigslist is the cars and trucks for sale.  There are TONS of listings on here.  Skip the dealer, shop from home.  Both dealers and individuals can list here but private party is almost always cheaper than buying from a dealer.

Garage sales are also posted on Craigslist.  Garage sales are a great way to find many heavily discounted items.  Take a look!  This can help save you a lot of time too.  Rather than driving aimlessly to all of the sales in the area, use Craigslist to find only the garage sales that may have the items you’re looking for.  In most ads the garages sale host will list many of the items available.

Ebay

Ebay offers many of the same things that Craigslist does.  Ebay however is not limited to the area you live in though.  Ebay has more buyers and sellers than any other auction website.

Top 10 Things to Buy Used to Save a Fortune:

1.  You next automobile

Buying a used car will not only save you money on the purchase price but you insurance premiums will likely be lower.  Also, if you finance your car, you will pay less in interest since you should be able to pay it down faster.

2.  Clothing

People love to go clothes shopping all the time.  Let them spend the big bucks.  When they unload their 6 month old clothes that have been worn twice, you can realize the savings.

3.  Appliances

Used appliances usually go for a fraction of the new price.  If you can’t find exactly what you’re looking for, try a scratch and dent liquidator.

4.  Baby clothes

Obviously, the kids will out grow their clothes quickly.  Grab used items and save a bundle.  And, when your kids out grow them, you can resell them again.

5.  Entertainment items – Movies, games, etc.

Used movies and video games often sell for significantly less than they do new.  Check out eBay and Craigslist for some great bargains.  Many times, you can even trade with other parties and pay nothing!

6.  Computers

Computer junkies are known for upgrading their computers constantly.  The average user doesn’t need to be on the leading edge.  Do your homework and find something used that will fit your needs.

7.  Auto parts

First off, never buy from the dealer.  Even the auto parts stores will be much cheaper.  Craigslist as well as salvage yards can get you the same parts for much less money out of pocket.

8.  Tools

Tools are another category of items that seem to drop in price quickly.  Do it youselfers often come to the conclusion that they should have hired a professional and end up selling their tools at huge discounts.

9.  TVs

Another entertainment purchase.  Like computers, some people prefer to be on the up and up with this technology.  Take a look at the used ads and you can often get current or only slightly older models for a fraction of the new price.  Remember, even if you buy new, there is going to be something better in 6 months.

10.  Furniture

Furniture can be had for extremely low prices.  Especially now.  With all of the foreclosures happening, there are tons of deals out there with folks needing to unload their furniture.

For Average Joe’s Automatic Investing is the Only Way to Go

When it comes to money and saving, us averages Joe’s tend to procrastinate more than with anything else.  The “I’ll start saving tomorrow” idea isn’t going to work.  Unless you are one of the fortunate ones that manages to do this without thinking about it, automatic investing is the way to go.

You can setup automatic investing for almost any type of account.  401K accounts are among the easiest, IRA accounts, regular savingss accounts, education 529 accounts, and so one.

401K accounts are the easiest.  You set them up with your employer and the money comes right out of your check.  If you start doing this immediately when you start your new job, its almost like the money wasn’t there to begin with so you don’t miss it or even realize it was ever there to begin with.

Roth IRAs, traditional IRAs, and brokerage accounts can be setup online with any major discount brokerage firm like Fidelity or eTrade.  You can set how often the money is transferred, it could be weekly, bi-weekly, or monthly.

Standard savings accounts, including online accounts (which typically have better rates than local branches) can also be setup for automatic saving.  You can have either the bank setup the automatic transfers from your checking to your savings accounts and in many cases you can even setup your direct deposit with your employer to automatically transfer a portion of your check to your new savings accounts.

Education 529 savings plans also usually offer a automatic investment option.  These work very similar to the IRAs and brokerage accounts.

Keep things simple.  Setup your automatic investing and savings.  Its one less thing to think about for your financial well being.