Money Sense Tips

With the current shaking up of the financial market, it is very hard to decide what your own financial future will be if you are heavily depending on them.

The future does not have to be more of the same if we employ a few simple money moves to improve our financial outlook.  Here are some suggestions to increase the money in our pocket.

1.  Review all your services. This includes all utilities, insurance policies, entertainment services, and more.  It is also recommended that you review insurance policies every few years.  If the family dynamics have changed, it may be time to update your policies, both life and automotive.  For older cars, dropping collision insurance is a move that will lower your premiums.  If you have been using a lawn service, now you can take up the reins and cut your own grass.

2.  Change your 401(k) distribution. Maybe you are holding a large percentage of your retirement funds in conservative markets.  If you are at least fifteen or more years away from retirement, it is okay to go with more high risk options to increase your return on investment.  You’ll be glad you did when you get closer to retiring.  Some money has the potential to be lost in riskier funds but you also have the time to recoup your losses with minimal damage.

3.  Eat more meals at home as a family. Think of the money you will save by doing this.  It will also involve using coupons for grocery shopping and planning meals in advance.  This is a small price to pay for keeping at least twenty-five to fifty extra dollars in your pocket each week.

4.  Invest tax refunds and other windfalls. A tax refund is considered a windfall because we never know how much we will get until we do the math.  It is money that we were hoping to get but not guaranteed.  Instead of spending it, buy CDs, stocks, or open a mutual fund account.  Investing in a 529 plan is a great way to save money for your kids for college.  Let this money continue to make more money instead of spending it on items with no financial return.

5.  Start a small business. Maybe you have dabbled in a hobby and have found that there is a market for it.  Use extra money to get that business underway with very little overhead.  Depending on your zeal, a decent return on your investment could be months away.

6.  Give to charity. Any money that you give to charities is tax-deductible.  This includes property that you donate.  For those who itemize, this is one way to increase your itemized deductions and your subsequent tax refund.

What are you doing to increase the amount of money you have available?  These simple suggestions can keep your cash flowing in a positive direction.  Here is an interesting book for you read:
How To Save Money & Organize Your Finances: Tales of an Urban Consumer