How to Save On A Tight Budget Part 2

In our last blog we discussed how to save on a tight budget. Today, we continue with more tips on some things you may not have thought of, savings on annual payments and savings on a daily basis.

Save On Insurance
A not so exciting topic, but one that needs to be discussed is insurance. Insurance tends to be a necessary evil that we often ignore after the initial policy is in place. Or, God forbid, we need to actually use the insurance. Insurance can be a hidden money sucker if we aren’t paying attention.

Set An Annual Meeting
Meet with your broker once a year to look at potential adjustments to your policies. Consider bringing all of your policies under one roof to get a multi-insurance discount or bundling different types of insurance to save.

Consider Raising Deductibles
Lower deductibles mean higher premiums. Consider upping your deductible and lowering your premiums to save monthly funds.

Life Insurance On Children
If you’ve recently had a child (congratulations!) you’ll get bombarded with life insurance policy offers for your little one. Since your child will not be a breadwinner, it simply doesn’t make a ton of sense to insure them, unless you think it’s necessary to have a policy in case of death.

Term Life Insurance.
In our humble opinion, term life insurance policies are the way to go for younger families. Bundling a life insurance policy with savings can often be very expensive so be sure you understand the difference between a term policy and a policy bundled with savings. Insurance is meant to protect the family if the breadwinner dies or there is a need to pay for the tasks performed by the stay at home parent. Check out the Compass Catholic website life insurance calculators to determine how much insurance your family needs.

Save On Transportation
Transportation covers a broad range—there’s fuel, maintenance, tires, payments, fender benders, unexpected airline trips, etc. We’ve a few ideas to save on transportation costs:

“Newish” Cars
If your car is aged and you are in need of a more reliable mode of transportation, please don’t run down to the new car lot at your local dealership. Buying a new car is not always a wise investment as new cars depreciate as soon as you drive them off the lot. Consider a used car with low mileage. You’ll save a significant amount of money and typically, newer used cars come with a warranty from the dealership.

Urban Life
If you live in or travel to an urban / downtown region, consider taking public transportation instead of a taxi cab. Taxis can get VERY expensive whereas public transportation is much more affordable.

Air Travel
You can save big on air fares by doing your homework. Consider flying out of regional airports to save some money and if your schedule permits, fly early in the morning, later in the evening or on ‘off’ days. If you regularly travel to a specific location, sign up for special email offers and be certain to use those mileage rewards!

Communications
With cell phones, cable TV, Internet, etc., the monthly fees can start to be daunting. There is a huge opportunity to save some money here:

Get ‘Smarter’ About Your Smart Phone
While contracts are very common with the major cell carriers, there are some carriers who do not hold you to a contract. If your smartphone plan is off contract, you may wish to shop around to see who has the best pricing. Plans change often, so odds are that you will save money by switching carriers.

Cut The Cable
More and more people are leaving cable television and switching over to an on demand provider such as Netflix, Hulu or Amazon Prime. If you find yourself watching less and less cable TV, it might be time to make the switch. You’ll save a substantially if you do. If you need to stick with Cable, switch to the very basic package and supplement your viewing with on demand.

Entertainment
Trying to keep the family entertained on a tight budget? We know this can be daunting, but consider taking a closer look around your neighborhood. Think about a museum, a park, a dollar movie theater, or even a nature trail. If your family loves sports, check out a football or soccer game at the local university or high school. Thinking outside the box here can help you save a substantial amount on entertainment expenses. Not only will you save money, but the memories you’ll build with your kids will be priceless.

Family And Friends
Ok, this is where things get really expensive. Since we’ve just recently passed Christmas, now is the time to discuss OVER-gifting with your family and friends. Our kids get so much ‘stuff’ over the holidays, and guess what? They still haven’t played with half of the items they received! Having an honest discussion about setting limits and expectations for gift giving can help you save a tremendous amount on Christmas this year.

Dining
Dining out can also be a money pit. We live in such a fast paced world with work, soccer practice, ballet, underwater basket weaving courses, church, etc., that sometimes, it’s just easier to grab dinner out. Unfortunately this can get very expensive if you are not careful. Consider using group-ons, look for deals such as kids eat free, etc. Another idea is to order water to drink rather than a soft drink. Four soft drinks can add up to an additional $11.00 on your bill and water is so much better for you!

Tying it all together the Compass Catholic Way

Consider this verse from Luke 18:18.

One of the rulers asked this question to Him, ‘Good Master, what shall I do to inherit eternal life?’ Jesus said to him, ‘Why do you call me good? No one is good but God alone. You know the commandments: You shall not commit adultery; You shall not kill; You shall not steal; You shall not give false witness; Honour your father and your mother.’ He replied, ‘I have kept all these since my earliest days.’ And when Jesus heard this he said, ‘There is still one thing you lack. Sell everything you own and distribute the money to the poor, and you will have treasure in heaven; then come, follow me.’ But when he heard this he was overcome with sadness, for he was very rich. Jesus looked at him and said, ‘How hard it is for those who have riches to make their way into the kingdom of God! Yes, it is easier for a camel to pass through the eye of a needle than for someone rich to enter the kingdom of God.’

At Compass Catholic, we strive to educate fellow Catholics about the importance of managing money from a Godly perspective. The verse from Luke above instructs the ruler to ‘Sell everything you own and distribute the money to the poor, and you will have treasure in heaven.” We aren’t suggesting that you go out and sell all of your worldly possessions tomorrow, but certainly, we know it’s important to save, spend and give with a God in mind, rather than a materialistic mindset. The more we save, spend and give with a Godly perspective, the closer we become aligned with God.

To learn more about savings and for some amazing financial resources, be sure to visit http://CompassCatholic.org

Blessings to you and yours,

The Beans.