Peggy Olive, Family Living AgentRichland County UW-Extension

How to Save a Dollar

….when you don’t have a dime to

spare?

Why do you want to save money?

$ To pay bills & make ends meet

$ Save up for a large expense

$ Save for emergencies

$ Pay off debt

$ Other reasons

Spending Income

Do you think of saving as striking a balance?

Or is saving money or cutting back a burden?

Flag of Italy

Spending Income

If you want to save money, make

plans to spend it!

Ideas for Saving Money

$ Claim Tax Credits

Ideas for Saving Money

$ Put first things first

= Prioritize

Ideas for Saving Money

$ Have financial goals.

1 Year

3 Years

5 Years

Personal Financial Goals

What – When – How much?

What’s the Price Tag for Each Goal?

Goal

Date Needed

Amount Needed

Amount to Save Monthly

= New Car

=March 2013

= $3000

= $83

Ideas for Saving Money

$ Get (kind of) organized

Ideas for Saving Money

$ Look for the little leaks

“Small leaks can sink

big ships.”-- Ben Franklin

Ideas for Saving Money

$ Find fun things to do that

don’t cost (much) money (shopping,

TV)

Ideas for Saving Money

$ Don’t always buy in bulk.

Ideas for Saving Money

$ Buy it cheaper

$ Make it last longer

$ Use it less

Ideas for Saving Money

$ Look out for credit!

Making Minimum Payments on a Credit Card

Balance: $1000Annual Interest: 18%Minimum Payment: 3% or $30

Save Money by Using Less Credit

$1000.00Payment #1 -- 30.00

970.00

Interest + 14.55New Balance = 984.55

Payment #2 -- 29.54 New Balance = 955.01

Interest + 14.33New Balance = 969.34

Late Fee + $35 =

$1004.34Overlimit Fee + $35 =

$1039.34Interest Rate goes up to 33%

• It will take almost 8 years to pay off the $1000 original balance.

• The finance charge will be $684 not including any late fees or over-limit charges or increases in interest rate.

• The original $1000 now costs $1684.

• Pay Day Loans• Rent to Own• Car Title Loans• Pawn Shops

400-800%

40-700%• Rapid Tax Refund Anticipation Loans

Subprime Types of Credit

Catching up on credit payments:

$ Don’t take on any new debt

$ Use “PowerPay” strategy

“Power Pay” Concept• Pay your credit payments as usual.• When first loan is paid off . . .

. . . apply that payment to the next loan.

• When loan two is paid off . . .. . . add that payment to the next loan.

• Continue this process until all loans are paid off.

Utah State University Extensionwww.powerpay.org

Power Pay StrategyDoctor Discove

rMasterCar

d

April $35 $22 $35

May $35 $22 $35

June $0 $57 $35

July --- $57 $35

August --- $57 $35

September --- $0 $92

October $35 --- $57

…and so on $0 --- $92

Ideas for Saving Money

$ Look out for debit too!

…One more idea for

Saving Money

$ Track your spending.

How do you know how much money you’re saving if you don’t

know how much you’re spending?

Home Car

Groceries Utilities

Clothing Health Care

Emergencies Other Extras Hobbies Debts

Saving for longer-term goals

Where does my money go?

• Fixed Expenses• Flexible or

Variable Expenses

• Discretionary Expenses

“Must Do’s”

“Nice To’s”

Where does my money go?

Track Your Spending

Date Amount Spent

Description of What Was

Bought

3/1 $31.92 gas

3/1 $695.00 mortgage

3/4 $65.00 cell phone

3/7 $93.89 groceries

3/10 $27.12 gas

and so on….

$ Notebook

$ Receipts

$ Checkbook

$ Calendar

$ Envelope Method

$ Computer (free programs: mint.com or quizzle.com; Quicken or

Money; your bank?)

Ways to Track Spending:

Compare income and expenses once a

month.

IncomeSpending

CAUTION!You might be about to blow

your budget:

$ If you’ve had a bad day.

$ If it’s a really good deal.

$ If you have cash in your pocket.

$ If you have an unrealistic fantasy.

$ What’s your trigger?

When you can’t pay bills . . .

• Act now!• Financial Counseling