Page 18 - AAA Northampton County - AAA Now! Fall 2013

Fall 2013 18 3914 Hecktown Rd., Easton, PA • (610) 258-2371 •www.aaanc.com
When the economy stumbles or
financial hardships strike, your family
budget might take a hit. That’s why
it’s crucial to have a financial strategy
that provides you with a safety net
during difficult times, such as setting
aside emergency savings in a mix of
our highly competitive Money Market,
Online Savings, and Certificate of
Deposit (CD) Accounts. The following
tips can also help get your budget
back on track when your financial life
takes an unexpected turn.
Tip #1: Know what you spend
To create a realistic budget, start
by keeping track of everything you
spend for a month. Write down every
purchase – from cups of coffee to
tanks of gas and dinners out. Note
all the bills you pay regularly like
groceries, rent or mortgage, utilities,
and car payments. By the end of
the month, you’ll know where your
money is going.
Tip #2: Reduce discretionary
spending
To maximize savings, minimize
your discretionary spending on
nonessential items like $3 cups of
coffee and dinners out. Question
every purchase: Is it a want or a need?
If you don’t need to buy it immediately,
you may not need it. If you think it’s a
“need,”wait a day or two to make sure
it’s not an impulse buy. This also gives
you time to shop around to see if you
can find it for less.
Look for other places to cut costs,
like your cable bill for example. Will
fewer channels be cheaper? Instead of
renting movies or downloading them,
what about free videos from the
library as a money saver? If you have
both a mobile phone and a landline,
can you drop the landline and use
your mobile phone as your primary
number?
Over time, the extra money you set
aside in a AAAMoney Market, Online
Savings or CD account will accumulate
and provide you with the extra
resources necessary to address an
unanticipated financial need.
Tip #3: Re-evaluate fixed expenses
Be sure to stay current with all your
fixed expenses like rent or mortgage,
student loans, Internet, cable, and
car payment – you don’t want to fall
behind and risk your credit rating. If
you’ve lost a job, you may want to
contact these providers and ask for
reduced payments due to hardship.
One fixed expense where you may
be able to save is home or auto
insurance. Ask your insurers if
increasing your deductible will lower
your bill. One place you don’t want
to cut is your medical insurance.
You can’t afford not to have it.
Tip #4: Re-examine variable
expenses
These bills fluctuate every month
and include expenses like utilities,
groceries, credit card charges, gas,
and dry cleaning. Where can you save
on variable expenses? How about
adjusting the thermostat to help trim
energy costs? Or carpooling to cut
commuting expenses? Look at your
life and your lifestyle to see where
you can save.
Tip #5: Pay yourself first
The easiest way to save is with
direct deposit. Ask if your employer
can direct deposit 5-10% of your
paycheck into a high-yield Online
Savings account or Money Market
account (you can’t make additional
deposits to a CD after it’s opened).
Many banks also offer an automatic
savings plan that makes it possible to
transfer money directly out of your
checking account into a savings or
Money Market Account on a weekly,
bi-weekly or monthly basis.
Saving and Budgeting:
Tips to Help You
Through Tough Times
Continued on page 19
AAA
Financial AAANow! TM