David Thornton, Peachtree Member:
Here is a short entry from my blog a couple of months ago. It contains some tips on saving money, which can then be used for an emergency fund.
TIPS FOR CREATING EXTRA ROOM IN YOUR BUDGET
With gas prices rising, many American families are starting to feel a financial pinch. My family and I have experienced a pinch for several years now due to layoffs and slow growth in the airline industry (I made less than $15,000 in 2005). We have learned several lessons about how save money.
First, take a close look at your spending. Most of us spend a lot of money on things that we don’t really need. For example, do you really need a fancy new cellphone for $200 when you can get a free one? Do you really need all those extra cable channels? My cable company offers a minimum package of network channels for about $8 per month, a savings of $45 over the next package. Buying bottled water and $3 coffees also adds up quickly and is not necessary. Go to the library instead of Blockbuster and the bookstore. Most of us can find some areas where we can trim the fat.
Cars cost Americans a lot of money. Keep your old car after it is paid off. This will free up the amount of your car payment ($300-500), but that is not all. With your car paid off, you can reduce your insurance and drop the expensive collision coverage, saving more money. By shopping around for gas, you can also save money. Visit http://autos.msn.com/everyday/gasstations.aspx?zip=& src=Netx to check gas prices in your neighborhood.
Another great source of savings is eating at home. A typical restaurant restaurant meal for my family of three is at least $15, even at a fast food restaurant. Multiply that by several times per week and it adds up quickly. Clip coupons for what you need and browse local supermarket sale papers. Many neighborhoods have a discount grocery store, such as Sav-A-Lot. Also, buy generic brands of food. The generic brands meet the same FDA standards as more expensive brands. In most cases, you can’t taste the difference. In some cases, generic brands actually taste better!
Finally, a long term solution to solving your credit crunch is to get out of debt. It takes time, but paying off credit cards and loans will free up hundreds or thousands of dollars each month. It will also relieve the stress of wondering where your next payment is coming from. It will also enable you to start saving so that you won’t feel the pinch in the future.
http://captainkudzu.blogspot.com/2008/06/tips-for-creating-extra-room-in-your.html
November 19, 2008 at 1:44 pm
David, your tips were so awesome I made them a post of their own. Thanks for sharing these with us!
November 20, 2008 at 1:07 pm
Man, I can definately identify with the whole “spend alot of money on things I don’t need”, but the car thing is of biblical proportion! “run ‘em til the wheels fall off is my motto(but PM preventive maintenance IS THE KEY). Thanks for sharing!
November 20, 2008 at 1:46 pm
Jan, you need to tell us your story about the great car you bought. Bought it low, drove it 2 years, and sold it for way more than you bought it for. Mathematically, you can’t even calculate the return on that. That kind of investment will get you though the storm! Love you to come tomorrow night and share your wisdom with the group!