Found Money:
How To Generate Quick Cash In An
Emergency
GOOD WAYS TO FIND FREE MONEY
If you are tired of
making lifestyle changes to accommodate
your savings plans then read on. These
ideas lead you to prime places to look
for money that’s already rightfully
yours.
Some people see
little point in changing their ways to
save a quick $5 or $10. These same
people find it difficult to believe such
small amounts can actually make a
significant difference to their bottom
line. They’d much rather indulge in a
little daily luxury, like enjoying a cup
of espresso each day, then tighten their
belts for what they see as measly
savings.
For all the
spendthrifts at heart, here are some
concrete ways to save on things you are
already paying for. No need to change
your lifestyle or habits in the least.
Think of it as money that you are
already overpaying to others.
Step up to the
plate and claim your free money!
Talking on your
cell-phone
You thought you
were going to need 2,000 minutes a
month, only to find 300 or even 200
would do just as well.
If you’re coming to
the end of your contract, or if your
service provider is willing to waive the
early-termination fee, ask to have your
deal changed as soon as possible.
Think about this:
Verizon’s America’s Choice 3,200-minute
plan runs about $200 per month; you’ll
spend just $40 for its 400-minute
America’s Choice plan. This is provided
you don’t start going over on your
minutes and incurring pricey overage
charges, that’s $160 in savings each
month, or $1,920 a year. Even changing
from the America’s Choice 1,100-minute
plan at $80, would still cut your
telephone bill in half for an added $480
in your pocket.
Local and
long-distance calling: If you’re not
using all of your cell-phone minutes
each month on a plan that doesn’t allow
you to just roll them over, you can at
least offset your landline costs with
those otherwise-wasted minutes. Are you
already doing this? Try bundling your
local and long-distance plans if you’re
regularly spending more than $50 per
month. Many bundled plans start at just
$50 before taxes and fees and allow you
to talk for as long as you want without
the huge bills.
Calculate all of
the above carefully, though. If your
usage is not steady, you’ll pay the same
rate every month, meaning no breaks for
vacations when your usage normally
decreases.
Your checking
account: When was the last time
you looked at the monthly fees your bank
assesses on your checking account? By
switching to a non-interest-bearing
account, you can pay far less money and
avoid higher fees.
Bankrate.com’s
annual survey of checking accounts found
that average monthly fees are up to
$10.86 on interest-bearing accounts, vs.
$3.72 for regular checking accounts.
You’ll have to keep $2,258 socked away
in that interest-bearing account to
avoid fees versus the $245 minimum for
the non-interest account. So, what are
you giving up?
Average yields sat
at a paltry 0.27% in the fall of 2003,
the time of the Bankrate report.
Meantime, if you can, try to plan your
ATM withdrawals. The average fee you’ll
pay for using another bank’s ATM machine
is $2.69 -- $1.40 to the ATM’s bank and
$1.29 to your own. Eliminating only one
of these withdrawals each week can save
you a nice $140 per year.
Your
insurance: You can save on your
insurance policies in a variety of ways.
Ask your insurance provider outright for
discounts: Besides the usual good
student and safety discounts on auto
policies, ask for a multi-policy
discounts if you’re insuring more than
one vehicle. Raise your deductibles on
older cars or drop collision coverage
altogether if your car is worth less
than $1,000. Raising your deductible
from $200 to $500 can reduce your
premium by as much as 30%, according to
Insure.com.
NEVER overpay to
borrow your credit cards. Do you think
that 2% or 3% isn’t worth fighting for
on your credit card’s APR? Consider
this: If you’re an average American, you
owe $8,940 in household credit card
debt, according to CardWeb.com’s
CardData Service. At the average APR of
16.44%, you’ll pay $1,470 per year just
in interest alone.
For every 1%
decrease in APR, you will save $89.
However, the difference is far more
dramatic over the entire life of your
debt. Figuring you can make monthly
payments of 5% of your debt per month,
you’ll pay $3,334 in total interest at
the higher rate. However, at an APR of
13.44%, you’ll have paid $2,551 – that
is 23% less.
Also, lots of cards
come with added benefits, such as
airline miles or, better yet, even cash
back. American Express’ Blue Cash card
rewards you with up to 5% cash back; the
GM card awards 5% back toward a GM new
car purchase or lease. On the average
credit card debt of $8,940, that works
out to $447. Use MSN Money’s Credit Card
Analyzer to find other low-rate and
cash-back cards. In addition, you can
check CardWeb for a list of the monthly
rewards that credit cards are offering.
Your
mortgage. Your biggest savings
potential here is to get rid of PMI, or
private mortgage insurance. PMI protects
the lender should you default on your
loan. You’re obligated to pay this so
long as your equity remains below 20%,
but once you cross that magic threshold,
you should ask your lender to drop the
fee.
The law actually
says your lender must drop the fee once
your equity crosses 22%, provided you
have a conventional loan originated or
refinanced after July 29, 1999 and you
have a good payment history. However, if
you have an older loan, you could be
paying this unnecessarily without
realizing it.
Depending on the
size of your mortgage, this could be
adding hundreds of dollars to your
mortgage cost annually. Look into this,
today.
Make the most of
your current resources
Begin by using what
you have. Paying for Internet access
already? E-mail can be a great way to
cut your long-distance telephone costs.
It may not be a substitute for your
weekly heart-to-hearts with Dad, but it
probably should substitute for the “when
can we get together again?” calls. Why
spend precious money leaving voice
mail?
Take the time to
get rid of what you don’t use. If you’re
not using it, you won’t miss it when
it’s gone. Donate all unwanted items for
a tax deduction, have a garage sale or
sell them on eBay. If you have to come
up with money for a storage unit for all
that stuff, it’s time to eliminate that
debt.
Pay attention to
potential income
Perhaps you have
had a hobby for years but have never
considered it as a money earner. Take a
good look at it now. If you love to
scrapbook, consider putting an ad in the
paper to teach others how to do the
same. At the same time, establish a Web
page where others can sign up to learn
your craft online.
Could you have old
money just waiting to be claimed?
Perhaps, you made a move and forgot
about an old bank account. There are
plenty of free sites that list people
who are owed money by insurance
companies, banks and utilities. Try
MissingMoney and CashUnclaimed.
Ask for a deal
It’s that time
again when you need to go out and buy a
big-ticket item. You know by now to shop
around for the best price but are you
prepared to ask for a deal. Next time
you have your heart set on that ruby
ring and you are prepared to drop 3K to
make the purchase, stop and think about
haggling that price a bit. Don’t just
assume because you are at a finer
jewelry store that the price will be
carved in stone. Ask. It never hurts to
ask.
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