6 tips for getting on top of your finances

1127283_golden_money_5 I bet some of you picked as your New Year’s resolution something about money: getting on top of your debt, sticking to a budget, etc. If so, Get Rich Slowly has an article that might give you some ideas: 9 Methods for Mastering Your Money in 2009. It covers budgeting, tracking your spending, getting the best return on your savings, etc. If it sounds familiar, that’s because he reposts an updated version of it every year. And i’s mostly common sense. But I like reading it every year and seeing how far I’ve come and how far I have to go.

I’ve challenged myself to come up with some additional suggestions:

If you have a spending problem, identify your nemesis and get rid of it. Does having credit cards cause you to spend more than you mean to? Or is it carrying cash? Or does clipping coupons make you want to get good deals on stuff you don’t even want? Figure out what your weakness is, and then cut it out of your life. Even if it’s the coupons, because believe me, if they’re making you buy stuff you don’t want/need, you’ll save more by ignoring them than by struggling to use only the ones for stuff you really need.
Negotiate lower rent on your apartment. This is especially important for those of you who are new to or re-entering the rental market after owning. Rents are falling in many markets, but in competitive markets landlords are still asking high prices and writing off the losses when apartments stand empty for months instead of lowering them. They aren’t always willing to sign a lease with a lower rent amount, for bookkeeping purposes, but they will work out the equivalent with free rent and other perks.
Ask your credit cards for a lower rate. This comes under the heading of “optimizing your accounts.” Credit cards are facing the possibility of serious trouble if people start defaulting like they have on mortgages – and it’s not unlikely. This is a great time to point out that you’ve paid on time faithfully and want to continue doing so, and will have a better chance of doing so if they lower the interest rate.
If you share finances with someone who isn’t responsible or doesn’t get money, talk this out with them. If you can convince them to change their ways, and they really do it long term, great. If not, convince them to let you manage the money and put them on an allowance or spending plan of some sort. If that doesn’t work, consider separating some or all of your finances. People often assume separating finances is anti-marriage, but consider that money troubles are the most popular cause of marriage troubles: if separating the finances allows you to feel more secure – or to shine a light on your partner’s unsound practices so that maybe they finally get why they need to learn better habits – it could save your marriage.
If you have health insurance, mke sure you’re maximizing your savings benefits. My insurance allows me to buy three months at a time on my prescriptions, and pay only two co-pays. It’s delivered free to my home, which saves my time running to the drugstore (and waiting in line, even when I’ve phoned it in days earlier), saves me a bit of gas on that errand, and saves me a 1/3 on my co-pays. Check out your plan fully, and don’t hesitate to bug customer service until they’ve explained everything clearly. You may be able to save yourself considerable money.
Barter goods and services. Trade stuff through Freecycle and Craigslist. If you know a stay at home mom/dad who could take on your kids, too, find out what you can do for her/him in return, and save the cost of preschool and/or babysitting. Even if you end up paying this person in cash, you could save serious money. Remember that bartering is technically supposed to be reported to the IRS at market value. Do your own research or check with a tax professional to make sure you’re doing this legally.