Strategies to help you feel more in control of your finances
-Jane Farrell, BettyConfidential.com
1. Take it to the bank
It's true that banks aren't the most popular American
institution these days. But if you haven't done so already,
it's essential that you start saving, even little by little,
and banks are still the best place to take your money.
"It's the quickest way to ease worry," says Michelle
Evard, CFP, of Evard Financial Services, in Phoenix, Arizona. If
you think you have enough cash to try a small, safe investment, you
might want to think about putting some money in a CD. Go to
bankrate.com for daily information on what interest rates you can
get across the country on a CD.
2. Act like a millionaire
In their book The Millionaire Next Door (Pocket Books),
authors Thomas Stanley and William Danko point out that
"ordinary people" who save a lot of money live below
their means and avoid conspicuous consumption. It's a great
example to follow: You might literally be able to spend twenty
dollars on a scarf or makeup, but that's also more than enough
to buy a Series EE savings bond. Once you start thinking that way,
you'll be surprised at how much money you can save. However,
Michelle Evard cautions, "Be sure not to cut out everything
you enjoy. You won't stick to it. It's like a bad diet;
you'll end up bingeing."
3. Call in reinforcements
Don't be ashamed to ask for help from friends, family or
neighbors. Whether it's last-minute babysitting so you can go
to an unexpected job interview, or a referral to a company or
employment agency, most people are happy to help. In turn, you can
offer them your help. You can also check out local community
colleges, places of worship and libraries. Chances are they have
support groups, networking sessions and even free or low-cost
classes that will help you get ready for a new career or fine-tune
the skills you already have.
4. Feel free
Before you spend, visit freecycle.org, a nationwide group that
posts listings of free goods--everything from tool kits to exercise
bikes to baby clothes. You can sign up for daily emails about
what's available in your town. Other lists of free stuff can be
found on craigslist.org and, often, in the classified columns of
local newspapers.
5. Learn to earn
If you've never read much on personal finance, now is the time
to start. Finding out what kinds of savings and investments are
right for you will give you confidence and help you make the kind
of decisions that can make you financially comfortable for the rest
of your life. And it won't cost you a cent:
*For the most basic kind of information, visit mymoney.gov, a comprehensive site run by the federal U.S. Financial Literacy and Education Commission. You can order a free kit that will explain the basics of savings, investing, Social Security and the banking system.
*Personal-finance guru Suze Orman's website, suzeorman.com, offers tutorials on everything from credit-counseling services to the best online personal-finance calculators to help you figure out how much you'll need to retire or buy a house. (Orman likes the calculators at CNNmoney.com and kiplingers.com.)
*Other good sites include smartmoney.com, which gives you an overview of the economy along with a strong personal-finance slant, and bankrate.com, one of the best comparison-shopping sites for insurance, investments and mortgage rates.
Almost everywhere we turn these days, there are big and small remnders of the bad economy: You're suddenly buying less milk with more money. Your health insurance plan won't be paying for the medicine your doctor prescribed just last week. But these ways to save money right now can help you keep more of your cash and feel more in control of your finances.
Read more expert ways to save money: Jean Chatzky on Making Money Grow and When Will the Recession End?
