Simple Life Spend Less

I have often wondered why it is that cost of living only seems to go up. The harder you work the more you spend. The more you spend the harder you work. You get the idea. Life is a financial treadmill with out an end, that is your life until the day you die.


For some we realize this paradox before then, yet many of can never have enough stuff, spend enough or travel enough. The reality is the more complex our lives are the more costly they are to maintain. And once you have high maintenance life you must continue to produce an income to support it.

Have More and Spend Less?

Economic woes and an increase in consumer prices have made sticking to a budget even more difficult for families across North America. People who were already struggling financially under the burden of debt and poor savings, may be feeling the pressure even more intensely now.

Here are six tips to help you have more and spend less.

1.Cut energy use
Simply sealing a home properly can help a homeowner eliminate 25% of their heating and cooling costs. Many utility service providers provide free or discounted energy audits. If this option isn’t available, clients can go the professional route, or do a self check using the steps found at energystat.gov.

Another way to prevent leaks is to add insulation, use caulk, spray foam and weather stripping to seal leaks around windows and doors, and in attics and basements. Plug devices with standby power, like TVs and stereos, into a power strip so they can be turned off all at once.

2.Spend less on groceries
With the cost of virtually everything at the grocery store going up, this is one area budget area clients can’t afford to ignore. Some have turned to coupon clipping (a household of four that uses them strategically can save 25% a year), but this is only effective if shoppers use them for items they already use or need.

Warehouse clubs can be a good source of cost effective purchases, but shoppers should weigh the benefits against potential negatives: the tendency to eat more because the food is going bad, and the potential for impulse shopping (many stores put electronics and other goodies out front).

Grocery shoppers can save up to $1,200 annually from cutting just half of their unplanned purchases.

3.Trim entertainment costs
When eating out, skip the drinks, and instead of ordering two entrees, order one appetizer and split a meal. Or dine out during breakfast or lunch, when the entrees are typically cheaper.

Movie tickets now top $10, so hit the matinees instead for discounted admission. Join the local theater’s loyalty club for freebies, get discount tickets in the local Entertainment Book, or head to the drive in, where tickets are usually cheaper.

4. Improve gas mileage
The easiest way to spend less on gas is to simply use less of it. Consolidate errands into one trip, or walk to the grocery store instead of driving. Speeding or braking sharply and frequent lane changes cuts fuel economy by 35%.4

5. Shave car insurance
Most insurers will shave prices for anti lock brakes, having an accident free record, taking a defensive driving course, or using the same insurer for both auto and home coverage – adding up to as much as 25% off a client’s premium. Shopping around for competitive quotes is a great way to potentially save.

6. Boost your income
Costs are rising across the board and a few extra dollars each month can go a long way to relieving the financial pressure of a weak economy and higher expenses. Business opportunities are great ways to do something enjoyable while padding the bank account.

While we can’t control rising costs, changing a few habits can help you hold onto more of your cash!

Mike Hassard Kelowna

1Money, July 2008
2Kiplinger’s, August 2008
3Money, July 2008
4Kiplinger’s, August 2008
5Money, July 2008
6Money, July 2007elown

Are you making these Life Insurance Mistakes?

Protecting your family properly is a keystone to a sound financial house. Here are some common mistakes people make regarding life insurance ...

Mistake #1

Putting it off. The topic of life insurance is an emotional issue. Therefore, it can be easy to put off. However, if a family’s future is dependent on the breadwinner’s income, it’s crucial that families obtain the right amount of life insurance coverage to suit their needs.

Mistake #2
Relying on a company-provided plan. Many workplaces offer an employer-paid basic life insurance benefit, usually equal to one or two times a worker’s annual salary. Unfortunately, this is usually not enough. If the worker changes or loses that job, they could be left uncovered. Not all policies are portable and there is never any guarantee the next employer will provide this benefit.

Mistake #3
Thinking life insurance is too expensive. Clients may find that term life insurance rates are lower than they expect. Money Magazine reports, “If you need to buy more, term is almost always your best choice. Compared with a whole life policy, you can purchase more coverage for fewer dollars, and rates have been dropping steadily in recent years.”(2)

Mistake #4
Not buying enough coverage. How much is enough? That depends on the individual. However, many independent financial experts recommend the following rule of thumb: purchase an amount of coverage equal to six to 10 times the breadwinner’s annual gross income.(3)

Mistake #5
Not reviewing coverage. Financial experts recommend reviewing life insurance coverage every few years, or when changes occur, such as buying a house or having more children.

If it has been a while since you have reviewed your coverage make sure to dig out your policies. In the process you will put your mind at ease!

Mike Hassard Kelowna

(1)Life and Health Insurance Foundation for Education.
(2)Money, March 2008
(3)INSWeb.com, viewed April 4, 2008