In the News - March 2008
Save money any way you can
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
www.uaex.edu. The
Cooperative Extension Service is part of the U of A Division of Agriculture.
March 28, 2008
Media Contact: Lamar James
Extension Communications Specialist
U of A Division of Agriculture
Cooperative Extension Service
(501) 671-2187 or (501) 753-0207
ljames@uaex.edu
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