New LED Light Bulbs

I just put in 5 new LED light bulbs from Phillips. They last over 20 years and use only a fraction of the energy compared to a standard light bulb. I replaced three 75 watt bulbs and two 60 watt bulbs. The new bulbs use 12.5 watts (60watts) and 17 watts (70watts). So 345 watts for all four bulbs is now at 76 watts. So a 78% reduction in energy! The 70 watt ones cost $40 bucks each and the 60 watt ones were $25. Amazing!

Solar Energy For Your Home

If you plan on staying in the same home for the next 8-10 years it may make sense invest in solar panel technology for your home. The first thing is understanding how much energy your home uses. If your bill is over $200 a month on average, your roof is less than 10 years old and you are able to pay for the panels within 3-5 years then it makes sense to invest. Plan to budget between $30,000 to $50,000 for the panels. It sounds incredibly expensive much like buying a luxury car. The warranty on panels is usually 25 years so there isn't much to worry about as long as you commit to staying in the same home. When you do the math the savings are significant the longer you stay in your home. Let's say you spend $3,000 a year on electricity right now. The cost of energy goes up an average of about 4% a year. In ten years cost for a year of electricity would be $4,440. By the ten year mark you would have already saved at least $30,000. By the 25 year mark you would have saved at least $66,000 after you paid off the panels at year 10. Best of all the federal government offers a 30% tax credit that is good until 2016 on the total cost. It is a numbers game and not for everyone but for those small few who are in the right situation I highly recommend researching the idea.

Watch Where The Money Goes

Sometimes I look at my bank account and I wonder where all the money is going. I know all the big things I pay for but I seldom think about all the little things I spend money on. I was surprised to find out just how much money this really was. Like little drips of water leaking from a faucet these tiny amounts add up over time to hundreds or even thousands of dollars over time. I think the most detrimental things for me are eating out at restaurants, impulse grocery store purchases, online shopping and poorly planned vacations. Take a look at what you buy every month and make a list and you will see what you really needed to buy and what was an impulse or luxury buy.

Use Household Items to Save Money

Sticky Price Tag Labels : Use baby oil and a rag to safely remove the labels.
Scratched CDs - Use a small amount of peanut butter. Start on the inside and work your way outward.
Remove Rust - Use half a potato as a scrubber dipped in water, then in baking soda.

How To Save Money on The Basics To Achieve Your Dreams

The best ways to save money is understanding the difference between a need and a want. Both a need and a want vary from person to person. The only basic things you need to live is food, water and shelter. The rest has become more abstracted as we evolve in time (i.e. tv, cellphones, internet, education, cars, plastic surgery, etc.) . Prioritizing is the best way to start. Start with food. Don't eat out at fast food places and restaurants. Make your meals at home and buy basic food components like fruits, vegetables, pasta, rice, oil and spices to make a wide range of meals. This will save you huge amounts of money and improve your health which will save you money on medicine and medical bills. The next is water. Don't buy bottled water. Use a water filter container if you love the taste of bottled water. Stay away from sugary drinks. They are a waste of money and effect your health. The last thing is shelter. Live with what you can afford. If you can live with family that is the most ideal. If you cannot family then live with roommates or a significant other. If you can afford to live on your own or cannot bear to live with someone else then live in a place that is practical for your lifestyle. Once you focus on these three elements you will realize all the other stuff becomes more of a want. Then you will see which wants you really want to focus on over the other ones. Like a new car or a used car. Or a community college or a private school. Or a new business or a job at a big company. If you follow this pattern it will allow you to focus your financial resources on things that really matter to you like a new career, a new business or a way to follow your dreams.

Building Your Emergency Fund

When times are good we all feel like the money will always be there for us. We get used to that regular paycheck and almost feel like we don't just earn it we also deserve it. So we spend to our hearts content until the dreaded day comes when the paycheck stops. We think it will be easy to just go to the employment agency show them our resumes and we will be back making more money than ever. Nothing could be further from the truth. The average time someone is unemployed can last a very long time. You may be shocked to find your skills are not as valuable anymore, or worse, your skills have no value! This is where you should have saved at least a years worth of income in your savings account to get you through this hard time. Failing to have an emergency fund is like living in a house made out of straw. The next strong gust of bad times will land you out on the street. So figure out how much money you would need to survive for a year without work and get started on saving that money before you buy that next cup of gourmet coffee.

Commuting on a Budget

If you live in a big city there can be nothing worse than trying to get to and from your place of employment. I used to take public transit buses, trains and subways to get to work for many years. My employer paid for it so I always made sure to take advantage of this great benefit. But for most people its not an option. In most cities, public transportation is a nightmare. The buses may run only every hour and there is no guarantee it will even show up. The most effective means of transportation is still having a car. When you are just starting out in life it is usually best to get a car that is cheap to buy and cheap to maintain. You could buy a car from a private owner but beware. You really have no idea what problems this car has and it could end up being more trouble than its worth. If you go to a used car lot just pay attention to the most crucial things such as how many miles the car currently has on it, the year the car was made and the quality of the interior. Any used car you buy should not have more than 50,000 miles on it. Why? Because most cars began to develop major repair problems at around 75,000 miles and you want something that is going to last you for at least 5 years or as long as you can save for the next car. Also be sure not to buy a car that gets less than 25 miles to the gallon. Gas is pretty expensive these days and you don't want to be filling up a $60 tank of gas every other day. In the end its not a fashion statement to have a car as this point in your life it's about getting to work and getting paid.