You want to develop a savings plan but living expenses eat most of your income and credit card debt ballooned out of control! Whether this was a result of unexpected emergencies or a lack of disciple on your part, you must understand where your money is going every month.  Here are some tips to help you keep more of your money:

  • Use a budget tracker, whether and app, a spreadsheet or a manual system, to know where you’re spending your money
  • Responsibly use a credit card balance transfer offer
    • Don’t be afraid of balance transfer offers! Just be disciplined about it. It’s likely that you get peppered with balance transfer offers in the mail.  When used judiciously, these offers help you keep more of your money.  If you have a credit card with a high interest rate that usually hovers in the 16% range and you’re making the minimum payment, that balance could take years to be paid off.  Your monthly payment is eaten by interest.  Let’s say you have a balance of $1500.00 and you’re making a $45 payment every month.  At that rate, it will take approximately four years to pay the balance off.  On top of that, you will pay about $500.00 in interest.  At the end of the day, you will have paid about $2000.00, including interest.  Balance transfer offers are like taking a short-term loan.  They’ll charge you a fee up-front of about 4%, or $60.00, but will give you about 18 months to pay it off interest free. So, assuming a 4% fee, you now owe $1560.00 instead of $1500.00.  To pay it off in 18 months will require monthly payments of $83.33.  Ask yourself if you can pay that amount.  If you can, you’ll save about $460 compared to what you’re paying now.  Another option is to continue paying $45 a month.  However, at the end of the interest-free period, this card will revert to a typical 16% interest.  But your balance will now be $690.  If you continue making $45 monthly payments it will take another 18 months and you’ll pay approximately $90 in interest.  You’ve accomplished at least four things: 1) paid off your credit card in three years, as opposed to four years, 2) kept more of your money by reducing your interest payment from $500 to $150, 3) may have strengthened your credit score, and 4) shown that you have discipline.  Voila!!!
  • Call your service providers (cell phone, cable, home insurance, auto insurance) and ask for options to lower your monthly payments
    • Our experience shows that loyalty has its benefits. And, the potential that you may switch to a competitor is incentive enough for your service provider to find a “special deal” for your loyalty.  Research shows that, long-term, it costs many more times to find a new customer than to keep current ones.  A simple phone call to your cable, phone and insurance providers can bring happiness to your pocket book.  In 2016, a Lypper colleague who has had his home and auto insured with the same insurance company for over ten years did a little shopping around to find out other providers’ rates.  With this information, he called his current provider inquiring about potential savings, stating that “some of your competitors are courting me for my business.  Before I decide, I’d like to know what you can do for me.” Lo and behold, they found him over $600 of savings a year for the exact same coverage. How generous can these companies be… It feels more like he was being squeezed by them for over ten years. That’s the price of loyalty! And the power of a phone call, yes, a phone call!!!

Lypper helps YOU keep more of YOUR money.

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