Released March 28, 2008
MURFREESBORO, Ark. -- Saving money can be difficult for many people.
"If you’re trying to save money, start with direct deposit," says Robbie McKinnon, Pike Count extension agent with the University of Arkansas Division of Agriculture. "If the money goes straight into my account without me ever seeing it, I’m much more likely to save."
Tax refund checks are the front of everyone’s mind. The IRS can people save by having the refund check directly deposited into an account.
"The IRS will allow for refund checks to go into up to three separate accounts," McKinnon says.
McKinnon says consumers can also save money while they’re purchasing goods or service.
"First, save money by comparison shopping. Many times, you can purchase the generic brand of the same item without sacrificing quality. Second, select a free checking account or one with no minimum balance requirement. Also, request a complete list of fees associated with the account, including ATM and debit card fees."
To earn the highest return on savings with little or no risk, consider certificates of deposit or a United States savings bond, either series I or EE.
Late fees associated with credit card payments can take out a big chunk out of the budget. Avoid these fees and send in the payment at least seven days before the statement due date. A late payment on one card can increase fees and interest rates on others. Avoid interest charges by paying off the bill each month. If you’re unable to pay off the balance, pay as much as you can. Shift the remaining balance to a card with a lower annual percentage rate. Consider using your tax refund to pay off the balance of the card with the highest interest rate. In the long run, you’ll save more by not paying the fees accumulating on the card.
When buying a car, pay with cash or make a large down payment. These two tips will save several thousand dollars in finance charges. Get the shortest term loan possible and this will lower the interest rate. Getting a rate quote or pre-approved loan from a bank or credit union rather than dealer financing can save as much as $1,000 in finance charges.
Save tens of thousands of dollars in interest charges by shopping for the shortest-term mortgage you can afford. For each $100,000 borrowed at seven percent annual percentage rate, you can save $75,000 in interest on a 15-year fixed rate loan than on a 30-year fixed rate loan.
Plan smart to save money on home repairs. Choose a licensed contractor and have them submit a written, fixed price bid. Don’t sign a contract requiring full payment before work is completed.
If home repairs include new appliances, read Consumer Reports for up-to-date information on brands, pricing and quality. Also, look for the yellow Energy Guide label and choose appliances earning the government’s ENERGY STAR, which can save up to 50% in energy use. Be sure to compare prices and get the best deal possible.
You can save hundreds of dollars a year by shopping at lower-priced food stores. You will spend less on food shopping with a list, taking advantage of sales and purchasing basic ingredients. Pre-packaged and ready-made items tend to cost a little more. Compare price-per-ounce or other unit prices on shelf labels.
For more information on saving money, including a new program called Arkansas Saves, visit http://www.uaex.edu. The Cooperative Extension Service is part of the U of A Division of Agriculture.
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http://www.uaex.edu/news/march2008/0328money.htm
Contact: Lamar James, (501) 671-2187 or (501) 753-0207, ljames@uaex.edu
