Getting the Most Out of Your Money in 2009

Budgeting and saving money are common goals for many Americans that often disappear the moment your favorite store has a red tag sale. Given the current economic climate, frugal living expert and author Jonni McCoy suggests that it’s more important than ever to optimize your personal finances by adopting savvy budgeting, saving and shopping strategies.

Below, McCoy has teamed up with Shell to offer some tips to help you stay on top, including selecting the best payment options for your personal situation.

Create and maintain a realistic budget. Make a list of your regular monthly bills and activities to draft a budget that allows you to live within your means. Identify where you spend the most and decide where you can cut back or change your plans to spend less.

Keep your list in a prominent place, like the refrigerator door. When you can see your plan and compare it to what you’re spending daily, you’ll be less likely to exceed your budget. Make sure everyone in the family is aware of the new limits so there’s no confusion.

Choose the payment option that’s right for you. When deciding how to pay for purchases, consider the pros and cons of various payment methods. Credit cards make it easy to pay at a later date, which can be helpful if you’ve budgeted for future expenses in advance. Pre-paid cards allow you to set a limit before you shop, which helps you stick to that strategy. Debit cards eliminate the need to carry large sums of cash by deducting funds directly from your checking account.

A new payment option on the scene is the electronic check card, which offers the convenience of a direct link to your checking account, and in some cases, rewards or discounts on the products you use most, like fuel for your vehicle. One version is the Shell Saver Card, which offers a savings of 5 cents per gallon of gasoline or diesel fuel purchased until June 1, 2009, and 2 cents per gallon savings thereafter. The Shell Saver Card also has no impact on your credit score and no enrollment or annual fees, adding to the ways to help you save and maintain your financial health.

Save where possible. Unforeseen events are part of life and the ideal safety net is savings. Set a savings goal each month and stick to it by avoiding impulse buys. Luxury spending cuts (seeing matinee movies instead of evening showings, avoiding trendy coffee shops, etc.) are common sense at this time, but to avoid debt, you might need to make further changes. Here are a few to consider:

Turn the thermostat down. For every degree reduced, you can save three percent on your heating bill. Minimize your cable television package. Ask if you can save by bundling your telephone, Internet and cable services together. Look into Internet-based long distance calling instead of landline service.

Shop smart. Everyday necessities can be purchased more economically. Join rewards clubs for the stores you frequently shop to get valuable coupons on must-haves. Reward club members may also receive access to additional discounts, coupons or online promotions, saving you more money.

Planning your menus around grocery store sales can make up to a 35 percent dent in your bill. Also, take a look at the groceries you buy and see what can be substituted. Try the generic brand of your favorite products. Often, they’re made by the same manufacturer as the name brand, but packaged with a store’s brand and don’t come with the increased price. Even with name-brand product coupons, generics are often less expensive.

Convenience foods (prepackaged or premade items) cost four to five times more than preparing it yourself. Figure out where you can replace a prepackaged item with something cheaper. For example, juice boxes in lunches are much more expensive than pouring juice into a drink container.

By following these suggestions, you’ll have more of a financially sound start to the year, which might just inspire your entire family to adopt positive financial habits for the months and years ahead. And, in challenging economic times like these, it’s especially important to learn all you can about the payment options you have to choose from, like the Shell Saver Card. For more information, log on to www.shellsavercard.com.

Courtesy of ARAcontent