Posts Tagged ‘Tips’
Did you know, the average household “owes 20 percent more than it makes each year?”1 With the current financial crisis, that percentage may even increase as families go deeper into debt just to maintain their lifestyles.
Primerica recognizes that education is the first step toward helping families learn to develop a healthier financial life. We believe a good understanding of how money works is key to long‑term success. These three tips can help you get started.
1. Avoid the revolving consumer debt trap.
Most credit card debt is revolving debt. Because of the way interest is calculated on revolving debt, it’s hard for you to know exactly how long it will take to pay off your balance. All that interest can add up to big bucks along the way!
With fixed debt, you make payments over a set span of time. It’s easy to tell when the principal will be paid off and – even with the same interest rate and monthly payments – the pay off date is usually much sooner than with revolving debt. Consolidating revolving debt into one fixed rate loan can potentially eliminate those debts sooner and reduce your monthly payment.
2. Understand compound interest.
With a revolving debt account, compound interest can eat away at your financial health. But when you use compound interest in your favor, it can really help savings grow. The more you save, the more interest you can potentially earn on that money.
3. Make a lifestyle change.
When it comes to reducing debt, little changes can make a big difference. By separating “wants” from “needs,” and making the “needs” the priority in spending, you can begin saving toward your future.
It’s a good idea to have periodic checkups with a financial services professional to make sure you stay on track for your goals. Primerica offers a FREE Financial Needs Analysis that is designed to highlight problem areas and present strategies to deal with them.
Tags: credit cards, finance, free, home mortgage, newsweek, Primerica, Tips
Posted in Primerica |
In today’s economy, many families are worried about layoffs, foreclosures and mounting debt. They’re looking for ways to cut costs, save more and make smarter money choices for their future.
Primerica, believes one of the first steps toward getting on track for a bright financial future is to create better spending and saving habits. To help you get into the mindset of making better money choices, Primerica presents three easy ways to curb spending.
1. Track purchases. Little purchases made every day can add up to big money at the end of the month. Keep track of expenditures by either writing them down in a notebook or purchasing budgeting software. You might be surprised at just how much you didn’t realize you were spending.
2. Minimize ATM visits. ATM withdrawals can add up quickly if you aren’t tracking them. It’s easy to keep pressing that withdrawal button and even taking out the minimum $20 at a time can add up quickly. The best plan is to set a limit on withdrawals per week and stick to it.
3. Cut spending by small amounts first. Breaking the over‑spending habit isn’t likely to happen overnight. Start small, say reducing spending by 10%. Once you get used to that adjustment, you can work your way up to a more aggressive cost‑cutting strategy.
Discretionary spending (e.g. eating out, entertainment, movie rentals, etc.) isn’t a bad thing, but over‑spending – particularly in times of economic upheaval – can put you into a precarious position if debt becomes too high or if you are laid off.
As you learn to budget better and spend less, the next step is to start socking away all that extra un‑spent cash. Primerica’s free Financial Needs Analysis offers a comprehensive snapshot of your finances and presents clear strategies for getting out of debt, becoming properly protected, saving more and getting on track for a great future.
Tags: ATM, curb spending, economy, finance, financial needs analysis, FNA, personal finance, Primerica, Tips
Posted in Primerica |
Economic woes and an increase in consumer prices have made sticking to a budget even more difficult for families across North America. People who were already struggling financially under the burden of debt and poor savings may be feeling the pressure even more intensely now.
Primerica presents six tips to help you have more and spend less.
1. Cut energy use.
Simply sealing a home properly can help you eliminate 25% of your heating and cooling costs.1 Many utility service providers provide free or discounted energy audits. If this option isn’t available, you can always go the professional route, or do a self‑check using the steps found at Energy Stat.
Another way to prevent leaks is to add insulation, use caulk, spray foam and weather stripping to seal leaks around windows and doors, and in attics and basements. Plug devices with standby power, like TVs and stereos, into a power strip so they can be turned off all at once.
2. Spend less on groceries.
With the cost of virtually everything at the grocery store going up, this is one budget area you can’t afford to ignore. Coupon clipping can help you keep more money in your pocket (a household of four that uses them strategically can save 25% a year), but this is only effective if you use them for items you already use or need.2
Warehouse clubs can be a good source of cost effective purchases, but you have to weigh the benefits against potential negatives: the tendency to eat more because the food is going bad, and the potential for impulse shopping (many stores put electronics and other goodies out front). Did you know that you can save up to $1,200 annually just by cutting half of your unplanned purchases?3 It’s all about making a list – and sticking to it!
3. Trim entertainment costs.
When eating out, skip the drinks, and instead of ordering two entrees, order one appetizer and split a meal. Or dine out during breakfast or lunch, when the entrees are typically cheaper. Movie tickets now top $10, so hit the matinees instead for discounted admission. Join the local theater’s loyalty club for freebies, get discount tickets in the local Entertainment Book, or head to the drive‑in, where tickets are usually cheaper.
4. Improve gas mileage.
The easiest way to spend less on gas is to simply use less of it. Consolidate errands into one trip, or walk to the grocery store instead of driving. Speeding or braking sharply and frequent lane changes cuts fuel economy by 35%.4
5. Shave car insurance.
Most insurers will shave prices for anti‑lock brakes, having an accident‑free record, taking a defensive driving course, or using the same insurer for both auto and home coverage – adding up to as much as 25% off a your premium.5 Shopping around for competitive quotes is a great way to potentially save.
6. Boost your income.
Costs are rising across the board and a few extra dollars each month can go a long way to relieving the financial pressure of a weak economy and higher expenses.
Business opportunities, such as Primerica’s part‑ or full‑time opportunity, are great ways to do something enjoyable while padding the bank account.*
While you can’t control rising costs, changing a few habits can help you hold onto more of your cash!
Tags: budget, car insurance, gas mileage, Primerica, recession, save energy, save money, spend less, Tips
Posted in Primerica, Tips |
The current economic downturn has many families worried about losing their job, struggling to keep up with bills and worried about the future. The outlook seems bleak – 11.6 million Americans are unemployed1 and third quarter 2008 foreclosures jumped 71% over the same time period the previous year.2
Primerica presents four tips to help your finances weather a recession.
- Slash and burn bills wherever possible. An easy place to start: auto and homeowner’s insurance. “Some insurers give long‑time customers up to a 10% discount, but that can pale in comparison with the savings from switching insurers. At least once every two years, get a quote from another insurer.”3
- Keep good credit. To keep that all‑important credit score attractive, make sure you pay your bills on time, limit the number of credit cards you have and avoid financing more than one big‑ticket item at once.
- Boost income. Start a part‑time business or work a few hours a week at a second job to get through a crunch. The Primerica Business Opportunity is a great way to do something enjoyable while earning extra cash each month. You can do the business part time or full time and work at your pace, on your schedule!4
Times are tough, but following these simple tips can go a long way to helping you and your family come out on the other side of the recession with your long‑term financial goals still intact.
Tags: auto insurance, credit, credit score, finance, good credit, homeowner's insurance, insurance, personal finance, Primerica, recession, Tips
Posted in Primerica, Tips |
With today’s volatile economy, creating an emergency fund isn’t just a good idea, it’s almost a necessity. Currently, 41% of Americans have no emergency savings1, and almost half of workers live paycheck to paycheck just to make ends meet.2
Financial experts recommend having an emergency fund of at least three to six months’ savings. Primerica offers four key tips you can follow to start building a financial safety net.
1. Separate savings. One of the easiest ways families can start an emergency fund is to open a separate savings account or money market fund. Money in this account should not be withdrawn unless a true emergency – such as a major home or car repair, hospital or other large medical bill, etc. – arises.
2. Keep the change. Loose change left over from daily purchases can add up quickly. Make it a habit to save single bills and change and deposit that money into your savings account at the end of each month.
3. Keep paying yourself. As you pay off big debt or credit cards, it’s a good idea to continue to make those same monthly payments – into your savings account!
4. Earn extra cash. Start a part‑time business or work a few hours a week at a second job to beef up an emergency fund. Primerica’s Business Opportunity is a great way to do something enjoyable while padding the bank account. You can work at your own pace, on your own schedule, part-time or full-time!*
Starting an emergency savings account doesn’t have to be complicated. Save what you can and put extra away when you have it. Even starting small can make a big difference in the long run!
Tags: business, business opportunity, emergency fund, family finance, finance, money, Primerica, savings, Tips
Posted in Primerica, Tips |
