Winter’s here and temperatures are dropping further south. It’s time to make sure you’re not wasting energy–and wasting money–on home heating costs. According to the U.S. Environmental Protection Agency, the average U.S. family spends over $2,000 a year on home energy, with nearly half of that going to heat and cool the home.
To save money, the EPA recommends taking the following 5 steps:
1. Make sure your home heating system is operating at maximum efficiency. Are its filters clean? Are any ducts leaking? Especially if your system is more than 10 years old, you should have it checked by a licensed contractor to make sure it’s working properly. After that, check your filters once a month and replace them when dirty. Change them at least every three months.
2. Get a programmable thermostat that can automatically lower temperatures when you’re asleep or away from home. By taking just this one step, you can save up to $180 a year.
3. To avoid losing heat, seal all leaks with caulk, spray-on foam or weather stripping. To retain heat, add insulation.
4. Use the EPA website’s Home Energy Advisor to see how your home’s efficiency compares with others in your area. The Advisor can offer further suggestions on what steps to take to boost your home’s efficiency.
5. Make sure all the appliances and home-improvement products that you buy are energy-efficient. Look for ones that display the EPA’s Energy Star symbol. The EPA has qualified more than 60 types of products, ranging from heating and cooling equipment to light bulbs.
For more information on cutting energy costs this winter, see: www.energystar.gov/heatingtips
For ways to save energy year round, see: www.energystar.gov/changetheworld
Article copied from abcnews.com
Friday, January 20, 2012
Friday, January 6, 2012
Personal Finance Resolutions You Need
Live Within Your Means
This is probably the simplest of all steps that you can take to get your financial life in order - and the hardest to actually perform. Start by reviewing your budget over the past year to see where your money actually went. After this, see where you can cut costs without sacrificing things that you need. Finding a new cable/internet or car insurance provider can often free up about a hundred dollars a month. Budgeting programs such as mint.com can help you do this and provide numerous other services and benefits as well, such as reminders of upcoming expenses.
Start a Retirement Plan
If you are not saving for retirement yet, now is the time to start. Your company retirement plan is a good place to begin saving, especially if your employer offers matching contributions. If you are already participating in your employer plan, consider increasing your contribution percentage or even making the maximum possible contribution, if you can afford it. If you make $40,000 a year, then a 15% contribution equals $6,000. If your employer will contribute 50 cents for every dollar you put in up to the first $3,000, then you have a total of $7,500 per year going into your plan. If you are 35 years old, then that would amount to $225,000 in contributions alone by the time you are 65. If you are already contributing the maximum amount to your company plan, then consider opening a Roth IRA and doing some investing on your own.
Create an Emergency Fund
Nothing disrupts a well-planned budget like large, unforeseen expenses such as major car repairs, medical bills and legal fees. Resolve to set aside $200 a month every month this year to put into a liquid savings or money market account so that you will be prepared for this type of expense when it comes up. You may need to get an additional part-time job to fund this, but allocating some time for this now may be a very wise investment for you when catastrophe comes calling.
Get Out of Debt
This is one of the greatest financial feats that you can accomplish in a given year. Paying off your debt is equivalent to getting a major raise, in terms of cash flow. Working an extra 12 hours a week for one year, at $10 an hour, will net you an extra $5,000 for the year.
The Bottom Line
These are just some of the general financial resolutions that you can make for the coming year to help you get back into the black and stay there. For professional advice consult your financial advisor.
Article from Investopedia.com
This is probably the simplest of all steps that you can take to get your financial life in order - and the hardest to actually perform. Start by reviewing your budget over the past year to see where your money actually went. After this, see where you can cut costs without sacrificing things that you need. Finding a new cable/internet or car insurance provider can often free up about a hundred dollars a month. Budgeting programs such as mint.com can help you do this and provide numerous other services and benefits as well, such as reminders of upcoming expenses.
Start a Retirement Plan
If you are not saving for retirement yet, now is the time to start. Your company retirement plan is a good place to begin saving, especially if your employer offers matching contributions. If you are already participating in your employer plan, consider increasing your contribution percentage or even making the maximum possible contribution, if you can afford it. If you make $40,000 a year, then a 15% contribution equals $6,000. If your employer will contribute 50 cents for every dollar you put in up to the first $3,000, then you have a total of $7,500 per year going into your plan. If you are 35 years old, then that would amount to $225,000 in contributions alone by the time you are 65. If you are already contributing the maximum amount to your company plan, then consider opening a Roth IRA and doing some investing on your own.
Create an Emergency Fund
Nothing disrupts a well-planned budget like large, unforeseen expenses such as major car repairs, medical bills and legal fees. Resolve to set aside $200 a month every month this year to put into a liquid savings or money market account so that you will be prepared for this type of expense when it comes up. You may need to get an additional part-time job to fund this, but allocating some time for this now may be a very wise investment for you when catastrophe comes calling.
Get Out of Debt
This is one of the greatest financial feats that you can accomplish in a given year. Paying off your debt is equivalent to getting a major raise, in terms of cash flow. Working an extra 12 hours a week for one year, at $10 an hour, will net you an extra $5,000 for the year.
The Bottom Line
These are just some of the general financial resolutions that you can make for the coming year to help you get back into the black and stay there. For professional advice consult your financial advisor.
Article from Investopedia.com
Monday, December 19, 2011
Debt
If you’re in debt, you’re not alone. Consumer debt in America is extraordinarily high. Sometimes it’s hard to know – or admit – if you have a problem with debt. It can be overwhelming to realize that you’ve gotten in over your head, and to worry that you won’t be able to pay back what you owe. The key to getting out of your situation is to act now. Don’t procrastinate. Taking charge of your finances and creating a plan for tackling your debt will cut down your anxiety and get you on the path toward a better financial future.
First, ask yourself whether debt has become a problem for you. Here are some circumstances that might indicate it has:
Next month’s bills arrive before last month’s have been paid
Your bills often include late fees
You avoid opening bills when they arrive in the mail
You procrastinate balancing checkbooks
You bounce checks
Write it Out
Do you actually know how much debt you have? Many people don’t. Start by making a list of everything you owe, whether it’s a mortgage, a credit card balance, student loans or even money you borrowed from family or friends. Write down:
The lender’s name
The amount you owe
The term of the loan
The interest rate and fees
Then total them up. Looking at the numbers can be worrisome, but this is a positive – and necessary – first step to tackling your debt.
The power of 50
Paying the minimum amount due on your credit cards is one of the fastest ways to fall further into debt, and it can keep you in debt for years or decades.
If you have a credit card with a $3,000 balance at an annual interest rate of 18%, and you pay only the 2% minimum monthly payment of $60 per month, it would take you 8 years to pay off your bill. Not only that, you will have paid $5,780 by the end of the 8 years – almost double the $3,000 you thought you were spending when you made the charges.
Paying just $50 above the minimum amount due each month will make an incredible difference in how quickly you can pay down what you owe. If you pay an additional $50 per month toward your $3,000 balance for a total payment of $110 a month, you could pay off the debt in 3 years instead of 8, and save yourself over $1,800 in interest. Imagine what you could do with $100 more per month.
But if you can pay an additional $50 per month on that debt, for a total payment of $110 a month, you will pay down more of the $3,000 you originally owed. And that means less money for the creditor to charge interest on. As a result, you would pay off the debt in 3 years and save over $1,800 in interest payments.
Imagine what you could do with $100 more per month.
Be realistic
Now that you have analyzed your debt situation, it’s time to look at your monthly budget and set realistic goals. That trip you had planned for next summer, or the new car you were hoping to buy may not be in the cards right now given your new outlook on reducing your debt. Use this free Rework Your Budget calculator to help you get your budget back on track.
Don’t get discouraged
Reducing debt is like losing weight. You’re not going to lose 50 pounds in a month – you need realistic goals in reasonable timeframes, and debt works the same way. For most people, it takes years to become debt-free. This doesn’t mean you have to stop enjoying your life. It’s just a reminder to live within your means and be diligent about adjusting any spending habits that have contributed to the situation you are in today. Dedicating yourself to paying off what you owe and becoming debt-free will be worth the wait, with the payoff being a brighter financial future. This article provided by practicalmoneyskills.com
First, ask yourself whether debt has become a problem for you. Here are some circumstances that might indicate it has:
Next month’s bills arrive before last month’s have been paid
Your bills often include late fees
You avoid opening bills when they arrive in the mail
You procrastinate balancing checkbooks
You bounce checks
Write it Out
Do you actually know how much debt you have? Many people don’t. Start by making a list of everything you owe, whether it’s a mortgage, a credit card balance, student loans or even money you borrowed from family or friends. Write down:
The lender’s name
The amount you owe
The term of the loan
The interest rate and fees
Then total them up. Looking at the numbers can be worrisome, but this is a positive – and necessary – first step to tackling your debt.
The power of 50
Paying the minimum amount due on your credit cards is one of the fastest ways to fall further into debt, and it can keep you in debt for years or decades.
If you have a credit card with a $3,000 balance at an annual interest rate of 18%, and you pay only the 2% minimum monthly payment of $60 per month, it would take you 8 years to pay off your bill. Not only that, you will have paid $5,780 by the end of the 8 years – almost double the $3,000 you thought you were spending when you made the charges.
Paying just $50 above the minimum amount due each month will make an incredible difference in how quickly you can pay down what you owe. If you pay an additional $50 per month toward your $3,000 balance for a total payment of $110 a month, you could pay off the debt in 3 years instead of 8, and save yourself over $1,800 in interest. Imagine what you could do with $100 more per month.
But if you can pay an additional $50 per month on that debt, for a total payment of $110 a month, you will pay down more of the $3,000 you originally owed. And that means less money for the creditor to charge interest on. As a result, you would pay off the debt in 3 years and save over $1,800 in interest payments.
Imagine what you could do with $100 more per month.
Be realistic
Now that you have analyzed your debt situation, it’s time to look at your monthly budget and set realistic goals. That trip you had planned for next summer, or the new car you were hoping to buy may not be in the cards right now given your new outlook on reducing your debt. Use this free Rework Your Budget calculator to help you get your budget back on track.
Don’t get discouraged
Reducing debt is like losing weight. You’re not going to lose 50 pounds in a month – you need realistic goals in reasonable timeframes, and debt works the same way. For most people, it takes years to become debt-free. This doesn’t mean you have to stop enjoying your life. It’s just a reminder to live within your means and be diligent about adjusting any spending habits that have contributed to the situation you are in today. Dedicating yourself to paying off what you owe and becoming debt-free will be worth the wait, with the payoff being a brighter financial future. This article provided by practicalmoneyskills.com
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