14 Foolproof Ways to Lower Your Living Expenses

We've all been there. Can't resist the new model year of your current car. Hey, it's only an extra $90 per month (plus an insurance bump of $37 a month, but who's counting?). Seduced by the cushy sectional that would pull the whole living room together and will only cost $60 per month. That great deal for upgraded Internet and all the move channels. What's another $23 a month?

Problem is, before you know it you're sinking in bills and your monthly payments have become a burden. Here are 14 ways to lower your monthly nut and get back to stress-free living.

1. Renegotiate everything

That means cable/satellite, phone and cell phone contracts, Internet service, bank fees, even your gym membership. You never know what's possible until you ask.

2. Lower your credit card rate

If you have decent credit, you might be able get your credit card company to lower your rate and/or maybe get rid of some of the fees. Transferring a balance to a card with a lower rate is another good trick for lowering payments and doesn't even require you to ask a representative for anything.

"If you don't have an account with a lower rate, shop for one," said CreditCards.com. "Also, see if an offer for a balance transfer might provide a lower rate. Before jumping at a balance transfer offer, though, run the numbers on a balance transfer calculator to make sure the deal makes sense after you consider the fees and the duration of the teaser rate."

3. Cut the cord

You could opt to get rid of your cable or satellite altogether and use streaming services instead. It's a growing option that can save you a good amount of money while still providing a wide variety of viewing options. For example: "Netflix and Hulu Plus both cost $7.99 per month each, while Amazon Instant Video will cost you $99 per year, which is $8.25 per month," said GottaBe Mobile. "This means the total cost for these three services all together would be $24.23 per month, which is a lot less than you'll ever pay for a cable subscription."

GIZMODO

How does that compare with your current bill? It's about one-sixth of what we're currently paying. Calling DISH in 3...2...1...

You can get more info about cutting the cord here.

4. Refinance your house

If you have enough equity in your house and rates have dropped since you bought (or refinanced the last time), you might be able to refi and lower your monthly payment. Remember that refinancing will add to what you owe, so if you were trying to pay your home off quickly, this would be counterintuitive.

5. Refinance your car

Refinancing your car could save you "hundreds of dollars each year and sometimes thousands over the life of the loan," said Bankrate. But only if you do it under the right circumstances. Check out their "5 situations when it makes the most sense to refinance your car" to see if you meet the criteria.

Drive Sure

6. Do a leak check

A leaky home is one you're paying too much for in heating and cooling bills. Do an energy audit to check for drafts coming in through window or under doors, among other places, and you could save more than $1,000, said RH Foster Energy.

7. Eat in

Or, at least bring your lunch to work a few days a week. According to Jeff Yeager, author of "The Cheapskate Next Door, a family that commits to eating at home can save $3,000 in one year and eat just as well," said ABC News.

8. Carpool

"The Daily Green calculated that the average American uses about 7 gallons of gas per week commuting to and from work," said abc News. "Share your ride and the gas bill with just one friend, you each save $650 a year. If four of you carpool, you each save nearly $1,000."

9. Shop smart

One of the greatest sources of waste in our household? Food that has to be throw away at the end of the week because it's gone bad. And we're not alone. USA Today says Americans trash $640 worth of food every year.

Nourishing the Planet

Meal plan, buy only what you need for a few days and hit the market again mid week, use coupons, freeze leftovers - all of these tips will help.

10. Check your balance

Hidden costs may be lurking - memberships you didn't realize you still had, anything you put on autopay that you're no longer using, old dating sites, gaming and iTunes charges you're unaware your kids are making. Look over your bank and credit card balances carefully to eliminate the riffraff.

11. Buy store brands

Some might be close to or equal to the name brand stuff you're buying. "Store brands often cost 25 to 30 percent less than name brand equivalents, which is an added benefit for customers," said CheatSheet. They can help you figure out which store brands are worth it, and when you should stick to the name brand.

12. Pay insurance and other bulk payments in full

Yes, coming up with large chunks of cash to pay for car insurance, home insurance, and home warranties can be rough. But some of these may end up costing you more if you have to pay a "convenience fee" for splitting up the payments.

13. Clear out the clutter

You know what they say: One man's trash is another man's treasure. Do a sweep of your home, setting aside anything you don't need or want anymore. Whether you list it on eBay or Craigslist, have a yard sale, take any acceptable items to a resale store, or all of the above, you may be surprised at how much money you can make for stuff you didn't even like anymore.

14. Donate!

You won't get paid for donating your old clothes, household items, and the like, but you will get a tax write-off at tax time. Be sure to get or complete an itemized receipt.

Shared from:  http://realtytimes.com/consumeradvice/homeownersadvice1/item/39843-20151105-14-foolproof-ways-to-lower-your-living-expenses

Home Buyers: Don’t Wait Forever for ‘The One’

When you’re dating, you can spend years searching for the perfect relationship only to—possibly—wait too long and miss out on something great. Suddenly, over your sad microwave meal and bottle of cheap red, you’re looking back on your life choices, wondering what could have been if you hadn’t been so darned picky.

Well, the same goes for house hunting. You can drive yourself crazy searching for your dream home. You’ve found houses that have come close, after all. So the perfect one is bound to appear soon, right?

Not necessarily. We know the hunt can be emotionally draining, but at some point you have to go from house hunter to home owner.

We’re not encouraging you to make a choice that will fill you with buyer’s remorse. But to borrow a line from the Rolling Stones: You can’t always get what you want, but if you try sometimes … you get what you need.

We can’t give you love advice (and trust us, you would not want us to), but we do happen to know a few things about real estate. Here are three questions to ask yourself; the answers will help you determine whether it’s time to settle on a home that might notbe what your dreams are made of.

1. Are my expectations realistic?

Everyone has a dream home. Mine is a Craftsman with Victorian high ceilings, art deco details, and a Mid-Century Modern feel. But here’s the thing. That Frankenstein of architectural styles doesn’t exist—and your dream home probably doesn’t either.

“There is no such thing as a ‘perfect home,’” says Ryan Fitzgerald, Realtor® and owner of Raleigh Realty in Raleigh, NC.

There’s always going to be something not so lovable in each house you view. The key to finding the right home is setting realistic expectations.

“You can find a home that meets almost all of what you are looking for,” Fitzgerald says.

Make a list of your dream features and amenities before you start house hunting—but be willing to let some of those features go once you start looking at properties. It helps to score each feature on a scale of 1 to 10—that way you (and your partner, if you have one) are on the same page about which amenities are deal breakers and which are simply nice to have.

2. How many properties have I viewed?

Once you’re house hunting, it can be nearly impossible to decide when you’ve looked at enough houses. After all, the perfect house could be listed any day now.

Go ahead and view online listings as much as you want. There’s no harm in real estate stalking in your spare time, but you should set a limit for actual viewings.

“If you go view more than eight homes [without finding anything], there’s a good chance you’re confused as to what you’re actually looking for,” Fitzgerald says. “You’re trying to piece together a home that doesn’t exist.”

If you find that you’re searching for your own Frankenstein (it won’t work, I promise), take a moment and ask yourself how many homes you’ve visited. Have you reached the (self-imposed) cap? If so, make a list of each property’s strengths and weakness, and then get ready to compromise.

3. What am I willing to compromise?

If you’ve set realistic expectations and looked at more than a few houses, it’s time to start making some tough decisions. It might feel like settling, but you’ll probably thank us later when you’re finally a homeowner.

Just make sure you’re not compromising on something you’ll regret later.

“If you’re going to compromise, do not compromise on location,” Fitzgerald says.

The real estate adage “location, location, location” bears repeating here. After all, a great house won’t matter much if you’re driving two hours to work every day or the only nearby grocery store closes at 7 p.m.

If you’re not sure where to compromise, ask your Realtor. That’s what they’re there for.

The exception to the rule

After months of searching (especially in competitive markets), you might feel the pressure to choose something—anything—just to achieve homeownership and stop throwing away your money on rent.

We’re going to contradict ourselves a bit here and tell you this: Sometimes it’s OK to keep looking. When you’re deciding on a home, you should always consider the current market, even if it means you’ll be shopping for a little while longer.

“If you are having trouble finding a home and you have proper expectations, don’t settle—especially if you’re in a hot market,” Fitzgerald says.

If you’re in a sellers’ market, homes can go quickly and you might just be missing the window of opportunity. It might make sense to wait a little longer than rush to try to beat out an overzealous buyer.

After all, competition can breed short-lived desire—and you don’t want to be stuck with a dud after the admirers have moved on to the next attraction.

Shared from:  http://www.realtor.com/advice/buy/when-should-you-settle/

What Is Escrow?

One of the most confusing processes for the uninitiated to go through can be buying a home. At times it may seem that people are speaking a different language than they have ever heard before. This situation to often leaves a home buyer having to take on blind faith that the brokers, attorneys, escrow agents, inspectors and mortgage agents know what they are doing and acting in the buyers best interest.

The real estate agents at Ballen Network don’t want their clients to ever feel like they are in the dark. Here is a very short course to help spread a little light on the escrow process.

When Do You Enter Escrow

The escrow or closing process actually begins once you, the  buyer and the seller have agreed on a price and all the conditions for the sale. At the same time that the sales agreement is signed your real estate agent will collect an agreed upon percentage of the sale price from you and deposit it into an escrow account with an escrow agent.

This known as earnest money and as the name implies it is to show that you are earnest in your desire to buy the property. Think of it as a deposit.

What is an Escrow Agent

An escrow agent is a neutral third party who actually handles all of the funds and documents associated with the buying and selling of the property. Not being a party to the sale, in any way, their function is to make sure that all parts of the sale are executed in an equitable and legal manner. Like a referee or umpire the make sure the rules are followed and that everyone plays fair.

Steps of the Escrow Process

1. Entering Escrow- Set the sells conditions, sign the sells agreement, open and escrow account and deposit earnest money.
2. Bank Appraisal– You should be preapproved before you start looking for a home. Still the bank is going to want their own, independent appraisal to assure the property value will cover the loan amount. Note:  home buyer usually pays for this and if property cannot be sufficiently financed sale is cancelled and earnest money returned. This varies state to state and situation to situation. All is negotiable when creating the offers and counter offers.
3. Good Faith Estimate- Once financing is approved you will be given a good faith estimate detailing all of your finances (interest rate, closing cost, inspection fees, etc.) associated with the sale.
4. Obtain inspections– These may or may not be required depending on what area you are purchasing a home but a general home inspection is always a good idea. Some other inspections you may consider or be required to have are pest inspection, environmental inspection.
5. Acquire Homeowners Insurance- This is a condition of any mortgage but you don’t have to use their recommended insurance company. Shop around to find your best deal and coverage.
6. Receive Title Report and Title Insurance- These assure you that not one else other than the seller has any claim on the property. In real estate parlance, that the property is unencumbered.
7. Final Walk-Through– One last look around the property.
8. Review Form HUD 1- This is the finale detailed report of all cost associated with the purchase. Check it closely against the good faith estimate to make sure that no mistakes have been made or added cost tacked on.
9. Closing- The last step. Where all the money and finale paperwork gets taken care of. Be prepared to spend half a day signing your name

Shared from:  http://theballengroup.realtytimes.com/advicefromagents1/item/38695-what-is-escrow

Six Things New Homeowners Waste Money On

OK, we’ve said it time and again, but it bears repeating: Buying a home is a very big expense—and once you’ve kicked off all that spending, it’s easy to find yourself caught up in rampant lifestyle inflation. After all, you’ve got an enormous, shiny new house just waiting to be filled with all sorts of nice stuff, right?

Well, take some quick advice: Don’t keep spending.

Homeownership comes with its fair share of unique costs—property taxes and urgent repairs and energy bills, oh my. There’s no need to add to their cost by shelling out for unnecessary expenses. Here are six major cash outlays that buyers can avoid.

Too much house

This one requires some thought before you actually nail the deal: How much house do you really need? Just because you’re pre-approved for a hefty purchase price doesn’t mean you should go as big as you can.

“The house that you can afford with the money you’re lent can make the budget go out of whack,” says Andrew Gipner, a financial adviser at Longview Financial Advisors inHuntsville, AL.

Not sure where to trim? Consider having less closet space, buying fewer bedrooms, or—especially—eliminating a formal dining room.

“You don’t use the dining room nearly as often as you think,” says Noelle Hans-Daniels, a Sotheby’s Realtor® in Indianapolis. “It’s kind of a wasted space.”

Fixing up your outdoor space ASAP

Once you close on your home and move in, you might be itching to host your first late-season barbecue. Or maybe you’ve been dreaming about a koi pond, like, forever. But hold on: Updating your outdoor space shouldn’t be your first priority, especially if you’re tight on cash. Unlike couches and beds, which are essential to a functioning house, landscaping and decor can be put on pause.

That goes double if you’re building new: According to Hans-Daniels, building your backyard at the same time as your home can cost “a lot more than if you did it after the fact.”

So exercise some caution before committing: Try pricing out your plans with a landscape contractor, and consider rolling them out in phases.

Old, outdated insurance

Still using the same company that offered you renters insurance seven years ago? It might be time for a change. Shop around.

“You may stay with the same company, but you may find something that’s a little better price for the same thing,” Gipner says. “Sometimes, people may not want to shop around or may be married to a particular company.”

Just because the same company had a good deal on auto or renters insurance doesn’t mean it’s the best fit to protect your home. Go through all your options with a fine-toothed comb, looking for a deal that won’t crush you financially but also leaves your house and its belongings secure.

After all, now it’s not just your stuff—it’s your roof, yard, and foundation you have to protect, too.

Space-filling stuff

If you’re moving from an apartment, chances are good you’re astounded by how much space you have. There’s another bedroom and a dining room and … yet anotherbedroom!

Don’t feel like you have to fill it all at once. Give yourself—and your home—time for personality to emerge.

“A lot of people will go out and say, ‘Oh my gosh, I’ve got to fill this space and buy stuff,’” Gipner says. “I’m not against possessions, but the way some people do it can be seriously detrimental to their finances.”

Instead of immediately stuffing the TV room with a generic, new couch and coffee table, wait it out. See what you really need and what you really like. In the meantime, stick the money you save into a renovation fund.

Extended warranties

Many homes don’t come with appliances installed, so first-time homeowners might find themselves making large purchases (like a dishwasher or refrigerator).

Here’s a tip: You don’t need the extended warranty.

“I’m against them,” Gipner says. “What are the chances everything you own is going to break or not work anymore?”

Yes, something might break within the relatively slim service window—but the money you’ll spend fixing one thing will be far less than the extended warranties on all the things. Your average warranty costs about $123 for major appliances, according to Consumer Reports, and a single repair costs not much more (and might not even be covered). Just risk it—you’ll come out ahead in the long run.

Yard maintenance

Having your own yard is definitely exciting, and while it’s important to keep it healthy and watered, you don’t need to go overboard. Resist the pressure to hire additional help for your yard—even if you’ve lucked into an HOA that covers it.

“You can still be part of an HOA and cut your own grass,” Gipner says. “You don’t have to pay someone an exorbitant amount of money to come out and cut your grass.”

Don’t be tempted by the sales pitches you’ll inevitably receive after your purchase goes through. A gorgeous lawn is achievable—and it can be done all on your own. Really.

Shared from:  http://www.realtor.com/advice/buy/six-things-new-homeowners-waste-money-on/

5 Unexpected Side Benefits of Homeownership

You already know about the tax benefits of buying a home & the long-term financial advantages created by rising home values & bankable equity.  But some of the associated benefits of homeownership might surprise you.

1.  Pride of ownership

You understand the idea of pride of ownership, but maybe you've never actually felt it.  You will once you put those keys in the door for the first time.  And this doesn't just apply to first-time homebuyers.  If you've worked hard, saved well, spent smart, & are able to now move up to the home of your dreams, you'll undoubtedly feel it, too.

"America has a long tradition of homeownership," said the New Jersey Association of REALTORS.  "This country was founded by settlers who braved the wilds, faced the unknown, & claimed a bit of the American countryside for their own.  Having a stake in the land upon which we live is rooted in the fabric of the American psyche."

2.  It's a do-over

So your old house deteriorated into an outdated mess.  Or maybe you earned a reputation for being the grumpy neighbor because you threw one too many fits over dog poop on your own.  Now you've got a clean slate.  Your house can be anything you want it to be, & you can be anyone you want to be - even the friendly, helpful neighbor who sets out poop bags, just in case.

3.  Social Benefits

Any move brings new opportunities to make new friends & increase your social interaction.  But homeownership can also provoke deeper social benefits.

A report from the National Association of REALTORS found that homeownership positively impacts educational achievement, with homeowners having a "significant effect on their children's success.  The decision to stay in school by teenage students is higher for those raised by homeowning parents compared to those in renter households," they said.  "Furthermore, daughters of homeowners, have a much lower incidence of teenage pregnancy.

Potential reasons for this:  "Certain behavioral characteristics required of homeowners that get passed onto their children, "such as the financial commitment that leads homeowners "to minimize bad behavior by their children & those of their neighbors that can negatively impact the value of homes in their neighborhood," homeowners assuming "a greater responsibility such as home maintenance & acquiring the financial skills to handle mortgage payments," & "neighborhood stability."

An additional study shows that "homeownership has positive effects on the academic achievement of children (with) significant effects of home environment, neighborhood quality, & residential stability on the reading & match performance of children between the ages of three & twelve."

4.  Coupons galore

Chances are you've got a laundry list of things you want to do to your new pad.  Buying a new house will unleash a cavalcade of junk mail, but in that mess of unwanted refinance offers & insurance information & other nonsense will be all kinds of coupons you can use from big box companies, home decor outlets, window treatment businesses & the like.  Go through them carefully & you can fix up your place without spending the equivalent of your down payment.

There are also hundreds of dollars worth of coupons from companies like Best Buy, Lowes, & Bed Bath & Beyond available in the change of address form you fill out at the post office or online.

5.  Credit offers

Once you close escrow, your credit score will get a bump & credit offers will start rolling in.  This is great if you're looking to get a new car, do some home improvement projects on credit, or buy some new furniture.  By taking advantage of special offers from Home Depot, Best Buy or furniture stores like Rooms To Go, you can do some updates & spread out your payments over time without accruing interest - if you qualify.  Just make sure to keep track of how much you need to pay monthly to take full advantage of the program.


Shared from:  Jaymi Naciri

Not Shopping Around for a Mortgage Can Hurt You

Think you’re a savvy mortgage shopper? You might not be. A study by the Consumer Financial Protection Bureau found that only about half of home buyers shopped around for a mortgage, meaning the other half considered only one lender or broker.

That’s great—if you’re a lender. But you’re a borrower, which means you want the best rates and loan terms in your area. And if you don’t loan shop, you’re very likely to make these expensive mistakes.

You might get a bad lender

If the only lender you work with is offering loans with lots of teaser rates, you might be in for a rough ride.

For example, let’s say your lender provides you with two options: a 30-year fixed-rate mortgage and a 30-year adjustable-rate mortgage. The fixed-rate mortgage is fairly standard, with a decent rate through the life of the loan.

But the lender is very persuasive with the ARM deal it has going, with only a 3% interest rate for five years. After that, it adjusts to the market and includes the lender’s margin.

Five years after you sign the loan, rates climb to 6%. Additionally, the lender’s healthy 3% margin kicks in, leaving you with a fully indexed rate of 9%. That’s a lot more than the 3% payments you were making for the previous five years.

If your lender did a bad job explaining the details of your loan (or a good job hiding them), you could be in serious trouble. But if you found a good lender halfway across town, that 20-minute car ride would have been worth it.

You can’t compare rates and terms

Within three days of applying for a loan, your lender has to give you a good-faith estimate, or GFE. This handy tool has tons of information about why your loan costs as much as it does. Fees for origination, title insurance, mortgage broker, application, rate lock, and commitment are all itemized in the GFE.

These fees can vary—sometimes significantly—among lenders and loan types.

If you’re using only one lender, you might get one that requires $200 worth of commitment and application fees than another lender across town who doesn’t charge for commitment or application.

You’ll miss out on special deals

Lenders want your business. To get your attention, they sometimes roll out special deals. Perhaps you need a mortgage that folds in your closing costs for an FHA loan, but your lender doesn’t have that option. Don’t give in to defeat. Call various lenders or brokers (or both), and tell them what you’re looking for. Ask them to contact you when they’re able to offer such a deal.

You lose bargaining power

Having a GFE from another lender can give you a significant advantage when negotiating, as it gives you a frame of reference. It’s a way of showing your lender that you have options, know what mortgages in your area cost, and are willing to go to the other guy if the deal isn’t right. That can make the lender budge on a few items and net you a better deal. But if you’re working with just one lender, you might find yourself out of your element with no frame of reference.

Remember: It pays to shop around. Use at least two lenders, ask questions, and compare loan terms.

Reposted from:  http://www.realtor.com/advice/not-shopping-around-for-a-mortgage-can-cost-you-heres-how/?iid=rdc_advice_article_related-posts

10 Home-Buying Costs You Need to Know About

If you’re a first-time home buyer, you might get a little queasy when the last line of your good-faith estimate comes in at several thousand dollars. And after the color returns to your face, you might also be a little more than perplexed by some of those fees.

Knowing what you’re paying for—like these 10 common costs—can ease that check-writing pain.

1. Earnest money

To prove you’re “earnest” in your purchase commitment, expect to plunk down 1% to 2% of the total purchase price as an earnest money deposit. This amount can change depending on market factors. If demand in your area is high, a seller could expect a larger deposit. If the market is cold, a seller could be happy with less than 1%.

Other governing factors like state limitations and rules can cap how much earnest money a seller can ask for.

2. Escrow account

An escrow account is basically a way for your mortgage company to make sure you have enough money to cover related taxes and mortgage insurance. The amount you need to pay varies by location, lender, and loan type. It could cover costs for a few months to a year.

Escrow accounts are common for loans with less than a 20% down payment and mandatory for FHA loans, but it’s not required for VA loans.

3. Origination

The origination fee is a hefty one. It’s the price you pay the loan officer or broker for completing the loan, and it includes underwriting, originating, and processing costs.

The origination fee is a small percentage of the total loan. A typical origination fee is about 1%, but it can vary. Use your good-faith estimate to shop around.

4. Inspection

You want to be assured your new home is structurally sound and free of surprises such as leaks or pests living in the walls. Those assurances come with a price.

• Home inspection: This is critical for home buyers. A good inspector will be able to notify you of structural problems, flooding issues, and other potentially serious problems. Expect to pay $300 to $500 for a home inspection, although cost varies by location.

• Radon inspection: An EPA-recommended step, this inspection will determine whether your prospective home has elevated levels of the cancer-causing agent radon. A professional radon inspection can cost several hundred dollars.

• Pest inspections: Roaches are one thing. Termites are a whole different story. Expect to pay up to $150 for a termite inspection.

5. Attorney

Some states, such as Georgia, require an attorney to be present at closing. In some other areas, this is optional. If you use a lawyer, expect to cover the costs, which vary by area and lawyer.

It’s typical for mortgage companies to have a lawyer on their end, although they should cover the bill.

6. Credit check

Just because you can get your credit report for free doesn’t mean your lender can (and it will actually pull all three). You have to reimburse the lender, usually around $30.

7. Extra insurance

If you live in a hazard-prone area, you might need to purchase extra insurance, like forflood.

8. Appraisal

Your lender won’t loan you money for a home without knowing what its fair market value is. An appraisal will cost $200 to $400, depending on location and property size.

9. Title company

You pay this to the title company to make sure the property’s title is free and clear. Your lender will recommend a title company, but you can also shop around for one.

10. Survey

It’s not required in all instances, but your lender may require a professional surveyor to determine exactly where your property lines are drawn. Prices vary widely, but expect to pay at least $100.

Remember: You have bargaining power. Shop around to get a feel for what rates and fees apply in your area. If you aren’t sure what a lender is charging, ask for an explanation—the charge might not be set in stone. If you’re unhappy with a charge, negotiate.

Reposted from:  http://www.realtor.com/advice/10-home-buying-costs-need-know/

Financial Resolutions Worth Keeping in 2015

It's the start of the New Year, and that means consumers are making resolutions—again. The top three financial promises that appear year after year, according to research from Fidelity Investments, include: saving more money, paying off debt and spending less.

As resolutions go, many are often broken. Still, Fidelity says of those who made a financial resolution last year, more than half say they are better off financially

Even better news: an overwhelming majority of those who set out to improve their finances at the start of the last New Year realized at least half of their goals, while nearly a third achieved their financial goals completely. 

Financial resolutions are no easy feat, but they are manageable. Here are four to keep in mind, not just in 2015 but throughout the arc of your life.

Keep track of spending!  One of the most important things you can do is to keep track of your spending. You cannot save money if you don't know where your money is going. Financial apps like Mint.com are free and help track your spending and offers many charts to show you exactly where your money is going.

Review your essential and discretionary monthly expenses. Determine whether it makes sense for you to cut costs, pay down debt, or save more. Start by taking these small steps, which everyone should be able to do.

Create a budget!  Create a budget and stick to it throughout the year. Doing so can help you find more money to save.  If you haven't already done so, start building a liquid emergency fund. Ideally, you'll need six months' salary to cover expenses in a pinch. But you can begin small, mainly by saving loose change: By just putting aside 50 cents a day, over the course of a year you can save more than 36 percent of a $500 emergency fund.

Most people may think it's not worth it to put aside 2 quarters a day, but the reality is that many people can do so—and the numbers show that it adds up over time.

Pay down credit card debt!  The challenge that most consumers find toughest is one that can be conquered with a few small steps. The first is reviewing your credit card bills.

Many people are accustomed to charging their credit cards, but many don't actually sit down to review important information. If you do, you will realize the account that is doing you the most damage is the one with the highest interest rate.

Start there and pay the most expensive balance first. Borrowing money for things you can't afford (or don't really need) usually gets you into trouble over the long term, because the interest rates you pay every month on credit cards can often derail your efforts to save money.

Call your credit card provider and ask for a lower interest rate. If you're a good consumer and have made timely payments, they may be willing to lower it for you.

If you're considering doing a balance transfer, you should first get out your calculator. There are fees associated with transfers, so you want to make sure the lower interest rate offsets the fees. Many credit cards in the New Year offer zero percent interest rates for a limited amount of time. 

You can be a savvy consumer and make that work for you if you're very disciplined. That means you'll need to fight the temptation to use that newly cleared card, while also committing to paying off the balance you moved over in a timely manner.

Focus on retirement!  Retirement is not what it used to be. Luckily, however, in the New Year you can save more for retirement on a tax-deferred basis. 

The limit on 401(k) contributions has increased by $500 to $18,000, from $17,500. Review your benefits to see if you're taking advantage of your company's match program.

If you're 50 and older, you can take advantage of the "catch up" contribution, which has also increased to $6,000 from $5,500. According to the Plan Sponsor Council of America, 97 percent of all 401(k) plans permit catch-up contributions.

Contribute to, or open up, an individual retirement account (IRA). Many tax-planning strategies end when the new year begins, but that's not the case with these accounts. You can open a Roth IRA or a traditional IRA, or contribute to an existing one, until April 15.

That way, you potentially reduce your taxable income, dollar for dollar, subject to phaseouts based on income.

Reposted from: http://www.cnbc.com/id/102304894#.

How to Achieve Financial Freedom

1.  Develop a long-term plan. You need clear goals to keep you on track in order to be successful.

On a piece of paper or computer document, make a list of each goal that you want to reach in order to be successful. Some examples are to pay off your credit cards, save money for a down payment for a house, or retire at a certain age.
List a desired target date for reaching each goal

2.  Make a budget. A budget is your playbook for how to spend your money. You need it to keep your spending within reason and help you to ensure that you have enough money to cover your current needs as well as to save for your long-term goals.

3.  Resolve to live debt-free. If you are currently in debt, plan your budget so that you can get out of debt more quickly by making extra payments. If you are not in debt, continue to live that way by putting off your purchases until you have saved enough to cover them.

4.  Reduce your expenses. Cutting spending by even a small amount on a regular basis will make a big difference in the long run. Live frugally by learning to recognize the difference between want and need.

5.  Increase your income. It is wise to have more than one source of income, both to increase your savings more quickly and as insurance in the event that you lose your job. There are a number of ways to supplement your income, from working a part-time job to developing streams of passive income.

6.  Invest your money. Your money will grow much faster if you invest it rather than leaving it in a savings account. The increase in value will enable you to reach your goal of financial independence much more quickly.

Tips:

Always include an extra cushion in your budget for emergency and unplanned expenses.

Achieving financial freedom is much easier if you start at a young age. That is because your savings have more time to grow.

If you are married, make sure that your spouse is in agreement with you on financial matters.

Warning:

The two areas where most people fail to meet their financial goals are: not making a plan and not controlling impulsive spending.

Reposted:  http://www.wikihow.com/Achieve-Financial-Freedom