Better Planning = Better Living

As of today I am still a guy living in debt but I am climbing out as quickly as possible and learning to live not just on a budget but also learning that planning pays off. I seem to constantly be in search of ways to save money and the thing I find constantly is that if you plan properly you’ll find that you have more extra cash available than you thought you would.

Of course I always maintain that a budget is the best way to survive and prosper financially but it also should be noted that increasing your cash flow through proper planning will increase your quality of living.

Here are a couple of ways that you can plan to pick up some extra cash on a regular basis.

1. Get the money out of your car! – No, I’m not talking about finding loose change under the seats (although that’s really not a bad idea) I’m talking about saving money through the way you operate your vehicle. First of all make GasBuddy your friend. It’s ridiculous the way gas prices are going up but we do have to live with it and unless we want to go back to covered wagons we’ll have to continue to deal with it. GasBuddy will let you know where the cheapest places are in your neighborhood to fill up. For example the gas station closest to my house is currently at $3.12 a gallon but if I am willing to take a short 3-5 minute drive I can get it for $3.01.

Another thing you can do is avoid the premium gas. I know you may want it but your car really may not need it. Most cars operate just fine with the less-expensive grade. Check your owner's manual to see if premium is required or merely recommended.

Finally, leave a little early so that you aren’t in a hurry. That way you can drive a leisurely 60mph on the interstate of freeway because studies show that is the perfect speed to maximize your fuel efficiency and make that tank last longer.

2. Get on top of your credit payments! – Americans are now spending more than they are earning and therefore carrying massive credit card balances. Stop! This is the trap that I fell into and am currently working my way out of. If you are carrying a month-to-month balance on your credit cards then take a quick peek at what you are paying in interest. Like me, you’ll most likely be shocked at how much money you can save a month by eliminating credit card payments.

If you are going to use a credit card then do it wisely and pay off the balance each month. If you simply can’t do that or won’t then stop using credit cards all together.

3. Improve your credit score! - When you are looking to take out a loan, particularly with a mortgage, your interest rate will be determined by your credit score. Obviously the higher the score the lower your interest rate will be.

One of the best ways to lower your score is to simply stop spending on your credit cards. A portion of your credit score is based on the size of your outstanding card balances compared to your total credit limit. So the lower your outstanding balance, the better your debt-to-credit-limit rating will be. You might also try calling up the card company and asking to have your credit limit raised. That will help with the calculation too, by increasing the denominator used in the computation. This will only work in your favor if you do not increase your spending with the newly increased credit limit.

Lower interest rates will lead to a lower monthly payment which ultimately leads to more money in your pocket due to an increased monthly cash flow.

Extra money is out there for just about everyone if you’ll just take the time and plan to find it.