If you are just starting out on the road to credit repair and financial
recovery, know that you are not alone in the process. While there are
millions that are working toward total debt elimination, it is important to
remember that not all methods for getting back on track will work for every
person. Finding the methods of budgeting and debt payoff that works for your
situation is as important an aspect of actually eliminating the debt. Once
you have tested a variety of tips on budgeting for reducing your debts and repairing
your credit that truly fits your lifestyle, you stand a higher chance of
continued success.

Budgeting is the foundation of a successful debt elimination plan and when
you are working to repair your credit, creative ways to budget your money
are necessary.

Here are some tips on budgeting during your credit repair journey:

Start Sacrificing

While looking at your personal tips on budgeting, you should take a red pen and start
striking out some of the expenses you regularly pay out in order to save
some money. Consider cutting out the cable, movie rentals, dining out, daily
cups of coffee, and any other expense that is not necessary for basic
survival. You may not want to live without these things but commit to making
the sacrifice for a period of just three months to start with. Allocate the
savings towards paying off debts. You can also create a reward system to
turn the cable back on after paying off the largest debt. The sacrifices
aren’t permanent but the effects of eliminating debts are.
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This is a guest post by Jesse Michelsen, founder of Personal Finance Firewall where he writes about ways to save more in the everyday aspects of life. Jesse is also a frequent contributor to the Money Crashers personal finance blog.

Insurance can be a real financial burden, especially when you don’t understand what you are actually paying for. As a result, I’m always looking for ways to decrease these costs. There are various forms of insurance we have to deal with in our everyday lives including car insurance, life insurance, and homeowners insurance coverage. The last of these, homeowners insurance, is one of the most unknown, complex, and expensive forms of insurance, yet it is something we should all understand as homeowners in order to decrease its financial burden. To help in the quest to have affordable homeowners insurance, I want to discuss five great tips that will help you save money:

5 Tips to Reduce the Cost of Homeowners Insurance

1. Increase your deductible.

A higher deductible will decrease premiums because technically, you will be responsible for more of the cost when you file a claim with your homeowners insurance. Thus, if you can afford a reasonable increase in your deductible, this can greatly reduce your yearly premium. For example, an increase of only $250 can decrease your premium payments by as much as 15%. Just be prepared for a higher expected payment should you need to file a claim.

2. Make your home safer and less of a liability in the eyes of the insurance company.

To reduce your premiums by up to another 15%, make sure your home is as safe as possible. Install fire extinguishers, smoke alarms, and a home security system in order to help prevent home burglary. Even adding a home security lawn sign can decrease your premium.

3. Be loyal to your insurance company.

Insurance companies will reward you with more discounts if you insure all your eligible valuables through them and if you stay with them for a long period if time. It’s always a good idea to continually shop around, but if your company is treating you right, try to work through them to get additional discounts before switching companies. A loyal customer is a company’s dream.

4. Keep on top of your policy and review it each year.

Depending on your insurance policy type, you may be insuring your belongings as well as your home. While this is completely fine, make sure that you keep on top of your policy and inventory your belongings regularly. For example, if you no longer own something that is on your insurance policy, have that coverage removed as that will reduce your premium. Why insure something that you no longer have?

5. Talk with a real person at your insurance company and ask for discounts.

When you interact with your insurance company, call and speak with company representatives. Get to know them and create a relationship there. By establishing a strong rapport, the insurance company representatives will know you and your policy well, and therefore may take the initiative to remind you of changes in your life that can reduce your policy. They will also be more responsive when you inquire about potential discounts. Discounts exist for different age groups, different credit scores, methods of payment, and even changes to your neighborhood (like the addition of storm drains or fire hydrants); taking advantage of these can greatly reduce your yearly premiums.

Insurance doesn’t have to be the most stressful and expensive thing in the world. Following these five simple steps will get you well on your way towards keeping you, your home and your belongings sufficiently covered while not breaking the bank.

Image by woodleywonderworks

If you’re not the type to catalog expenses or have a routine for
your pocket change besides “make sure it doesn’t make it into the
washing machine,” tax season might be an anxious time for you. There
are lots of free tools you can do use to maximize your refund; here
are some other tips and tricks to keep in mind and keep your wits
about you.
1. Keep a tax diary for your expense reports, charitable deductions,
health care spending, and anything else you need to have handy in
April. If you don’t want to carry something around in your purse or
wallet, use your phone! Most phones nowadays have a basic digital
camera. If you’re worried you’ll forget to write something down, take
a picture and email it to yourself. This is particularly necessary for
small businesses and self-employed tax-payers who must be pay close
attention to detail.
2. Speaking of expenses, remember that a lot of tax deductible purchases
don’t make it to tax forms. It’s a shame when you consider the
business lunches, keys made, or the bottle of ibuprofen for the break
room – it really can add up, especially if you manage an office. Don’t
go crazy and hope to get away with it; keep in mind that most costs
tangentially related to your place of business should be noted on your
expense reports. Adjustments can be made later.
3. Optimize your spaces by clearing clutter. If you haven’t worn it in a
year, donate it. This is the general rule of thumb for cleaning out
your closet, but you should also apply it to other areas: look through
your kitchen knick-knacks, small appliances, children’s toys, and
entertainment. You might be looking to double or quadruple your
deductions.
4. Use a free online tool to stay savvy when it comes to new IRS tax
rules. TurboTax has a free
online tool that will forecast your tax refund and savings called
TaxCaster. Tax Caster is also available as a mobile app on Android and
iPhones. In fact, you may not be aware of how many mobile apps are
available for personal finance, banking, and budgeting: a lot of
financial apps can be exported in Excel files and transposed into your
existing spreadsheets. Additionally, a lot of banks are beginning to
offer mobile banking.
5. Organization is subjective. Even if you’re dumping all of your
receipts and bank statements into a brown lunch bag, don’t feel like a
slob. Although you’re less likely to miss out on a deduction here and
there with a stringent filing system, if you’re not a ‘natural’ at
organizing, you might stress yourself out too much to justify the
savings in the end.