Smart Military Money
Personal finance tips andadvice for the military lifestyle.
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Consumers should watch for simple and sometimes sneaky money drains.
Everyone is looking for ways to save, but finding relatively painless ways to trim spending can be difficult.
One way is to step back and look for common and sometimes hidden fees, charges and expenses that zap your budget without raising red flags. Here’s a look at six common money drains that can deplete your bank account without much fanfare:
If you’re looking for a vehicle on a budget, one of the biggest money drains out there is buying new. New cars, which are infamous for their immediate, “off the lot” depreciation can fall in value as much as 20 percent in the first year alone.
Although used cars and their dealers don’t always engender a sterling reputation, the industry has improved dramatically with the introduction of things like Carfax and certified pre-owned dealer vehicles.
Carrying debt unnecessarily and only paying the minimum balance on your credit cards can drain your bank account faster than anything out there.
You’re only racking up needless interest if you hold on to a balance when you don’t have to. Rather than paying the minimum, pay as much as your budget allows. Failure to keep balances below 30 percent of the credit limit can wreck your credit score.
You might be missing some ATM fees. Some banks will attach fees to your checking account if you aren’t maintaining a certain balance or using your ATM card a certain number of times per month. Sit down with someone from your bank and ask about the rules and stipulations on your personal account to avoid paying any fees unnecessarily.
Health professionals have drilled the harmful effects of smoking into our brains for years. Everyone is familiar with smoking as a cause of cancer, high blood pressure, heart disease and other serious medical issues. But smoking also takes a toll on your wallet. With the average pack of cigarettes at more than $5, a pack-a-day smoker can easily spend nearly $2,000 a year. Despite the daily costs of smoking, many health experts agree that a single pack of cigarettes can cost up to three times as much in medical costs down the road, making quitting smoking one of the smartest financial and health decisions out there.
Customers are paying an average of $75 a month for digital cable services and many are paying much more for a full channel listing. The cost of television service seems to be rising every year and many of the special offers apply to first-time customers only. Completely cutting your television service may not seem like a viable option, but stripping your service down to the basic model can save you a bundle. Consider replacing your expensive movie channels with Netflix or Hulu Plus, which cost about $8 a month.
If you purchased your home a few years ago, one of your biggest money drains may be a high interest rate and corresponding high monthly mortgage payment. Qualified service members can consider refinancing their current VA loan or into a VA loan to capitalize on recently low interest rates.
Photo thanks to Images_of_Money under a Creative Commons license on Flickr.
2 Comments
What more do we have to cut back on to be able to eat and put gas in our autos. Tuna is up to 1.00 a can, so seniors can’t afford to eat tuna anymore, a staple for us. I do not use a lot of gasoline, foot power is fine, and I am healthier, ever though people laugh at me for pulling my little cart behind me. I am not putting my money into Arab oil pockets. If I need to drive anywhere I put one gallon of gas in my car, go to the places I have to drive to. Hey seniors, the only thing that hasn’t gone up in price in Ramen noodles. Happy days we can still eat.
Okay and many people are getting to be penny piches we all like to save and if you can’t pay for it ijn cash then you really don’t need it!I have been paying off all my debts over the past several years and I have been successfull in doing so!We all should be ona budget and stop eating out so much and eat at home!I am now dowm to 5 debts now compared to 40 or so!I have come a long way since credit cards and debts that couldn’t be paid!But when it comes to automobiles then just pay for it in cash!I had a loan out for a new car that I purchased via finance.We all could learn a thing or to from the baby boomers from the 1950′s.A penny saved is a penny earned!And you should keep track of what you spend your hard earned money on like dunkin doughnts coffe!If you can brew it at home then you can save more money!