We are all looking to find ways to increase savings during this economic recession. Reducing the cost of your home insurance policy can help in this regard. Here are six ways you can lower the costs.

1. Stay with the same insurer. You can take advantage of discounts offered by your insurer if you purchase all insurance policies with one carrier. For example, having a homeowners and automobile insurance with the same company can yield up to 15% discount on your premium.

Moreover, the longer you remain with the same insurer, the better chance you have of obtaining additional discounts. For example, homeowners who have been with a company for five years or more may qualify for a special discount.

2. Increase the deductible. While you may currently have a $500 deductible, by raising it to $1000 you can save up to 25% on your premium.

3. Add security features. By installing smoke alarms, burglar alarms, and special locks, you can save as much as 20% on your premium. To find out if your insurance company offers these types of discounts, give them a call and determine how much you may be able to save in this regard.

4. Age-related discounts. Some insurance companies offer discounts to individuals who are 55 or older and retired. Check with your company and ask if they offer such discounts.

5. Annual review of your policy. This is another way you can cut costs on your policy. If you have expensive items in your home that are covered under a floater attached to your homeowner’s plan, these items will depreciate each year and may no longer have to be covered.

6. Good credit. One of the components used in determining how much you will pay for insurance is based on your credit rating. Therefore, to keep costs down it’s a good idea to ensure that you check your credit report and FICO score annually and correct any errors you detect on the credit report. Do not skip any monthly payments on credit card bills or loans, and maintain a good credit history.

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com

Do you have things sitting around that you’re not using? Most of us do. There are a few ways we can get rid of these items. We could have a garage sale, but pricing and organizing things takes up a lot of time. We could take it to the landfill, but that’s wasteful if someone else could use it. Or we could freecycle it.

Freecycling is a movement that encourages people to give the items they don’t need to those who can use them. It’s a great way to get rid of clutter, and for the recipient, it’s a great way to save money. But how can those with things to give away connect with people who need them? Through a local Freecycle group!

Freecycle is a non-profit organization that utilizes email groups to facilitate giving. Founded in 2003, Freecycle originally consisted of a few dozen team members who drove around the Tucson, Arizona area trying to find homes for unwanted items. Organizers realized that email would be a much more efficient means, so they set up the first mailing list. The concept spread like wildfire, and today there are Freecycle groups all over the United States and in over 85 other countries.

There are Freecycle groups in most cities, as well as many rural areas. If there is no group in your area, you can apply to start one. All group organizers work as volunteers, with the support of the organization.

How Freecycle Works

In order to use Freecycle, you must join your local group. Links to groups in your area may be found on the official Freecycle website (Freecycle.org). Most groups are run through Yahoo Groups, which makes it easy for any member to post messages to all other members. Some groups allow anyone to join, while others require moderator approval. Just follow the instructions provided to sign up.

Once you’ve joined, you can post offers. This is generally done by sending a message with the word “Offer” in the subject line, followed by the item name and location. Provide any pertinent details, and let members know if you wish to be contacted in any way other than email. Those who are interested can email you through the group. Once the item is given away, the giver is asked to post a message stating that the item has been taken.

Anyone in the group may respond to an offer, but it is up to the giver to decide who gets it. There is no rule stating that items must be given on a first-come, first-serve basis. The only requirement in most groups is that all items be completely free, and that nothing illegal or adult-themed is given away.

Members may also ask for items they need. If another member has the item, he can contact the requester and arrange for pickup or delivery. While there is no requirement to give items away, members are encouraged to both give and receive gifts.
Joining Freecycle provides opportunities to both get rid of our “junk” and receive things we need for free. Membership is also free, so there’s no risk in joining. Go ahead, give it a try!

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com

In tough financial times, saving money is easier said than done. For many of us, once we’ve paid the bills and bought the essentials, there’s just not much, if anything, left to save. Wouldn’t it be wonderful if we could save up at least a little money each month without even missing it? Actually, most of us can.

Some people make the effort to dig out exact change when they buy something. But the overwhelming majority of us just fork over the closest thing we have in paper money. When we get change back, we stuff it in our pockets and forget about it. Once we go home, it often ends up on the dresser. We may forget about it for weeks or months, or the kids might get it and spend it on candy or toys. Just imagine how all that change that we toss aside could add up over time.

Instead of leaving change lying about where it will get lost or pilfered, try putting it into a jar, piggy bank or some other container. Avoid spending it, and use only bills to pay for everything. If you faithfully put all your change in there, you’ll be surprised at how quickly it fills up. You might even find that you need a larger container if you want to save for any length of time!

Try saving your change in this manner for a year. If you have an extra dollar bill or two, feel free to throw that in as well. Just resist the urge to borrow from your fund, and let it keep growing. At the end of the year, you could have enough money to buy something nice or do your Christmas shopping. And if the entire family pitches in, you might even end up with enough money to take a vacation!

Saving change is also a good way to start an emergency fund. It will take some time, but saving up slowly is better than not having any money put away at all. Once you’ve built up some change, you could roll it up and put it into an interest-bearing savings account or a short-term investment vehicle to add a little more to it.

Other Ways to Save Change

If you do not usually spend cash, it’s still possible to save up your change. Some consumers who keep most of their money in a checking account round their checks up to the next dollar when subtracting them in their registers. This leaves them showing less money than they actually have in their bank accounts. It takes some getting used to when balancing your checkbook, but once you get the hang of it, it’s a great way to save change without actually handling it.

Some banks have also begun to offer programs that help account holders save change when using their debit cards. They round each purchase up to the nearest dollar, and transfer the difference into a savings account. Check with your bank to see if they offer such a program.

Even the most careful budgeter can waste change without even realizing it. By making a conscious effort to save your change, you can accumulate lots of extra money in a year’s time. And best of all, you’ll probably never miss a few cents here and there!

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com