Friday, March 13, 2009

Tips by David Koch

I like David Koch of Sunrise and he's got good tips about saving .... I just want to share this because I find this informative,,
 I guess I have to cut down on my splurging and unnecesary expenses,, oh well ,, I guess I should not be thinking about European trips , Singapore shopping or even an  Argentina travel
here are the tips....

David Koch says.....
There's been a lot of argy bargy in the press about whether we're in a recession or not. But really, it doesn't matter whether the official figures show we're in recession when it's clear we are experiencing a serious downturn.

There are heaps of steps you can take to reduce the impact of the economic downturn on your personal finances. It's important to take these steps now, because the sooner you swing into action to shore-up your own financial position, the less impact any eventual recession will have on your finances.

Step 1 - Reduce your debts

Many Australians should be knocking on their bank's door to make sure they are getting the best deal for their mortgage and other loans. If you don't ask, you don't get, so call up your bank manager and find out whether there's room to move on your mortgage terms.

To reduce your debts and debt re-payments, get rid of your credit cards (debit cards work just as well when you need to use a credit card to pay for something). Then, consolidate your credit card and personal loans into the one account. Shop around for the bank that will offer you the best interest rate.

Step 2 - Reduce any unnecessary expenses

First, the phone bill. If you can, make sure all the household's phones - landline and mobile - go on the one account because telecommunications carriers will often offer you a discount if you buy more than one of their services. Then, talk to three different carriers about the best deal they will offer you - making sure to let everyone know you're talking to other companies. You'll be amazed at the deals and extra's they'll offer you when they know they have to fight for your business.

Buy supermarket home brands and join a food co-op to save money on groceries. Car pool and encourage family members to walk or take public transport instead of using the car all the time. Even consider only owning one car if you have two and one isn't used very much.

Step 3 - Maximise your personal tax deductions

This year, be vigilant when claiming personal tax deductions such as education and home office expenses. Doing this will reduce your total tax liability so make sure you keep every receipt for everything you buy that is related to your work so you can maximise deductions this year. Don't forget to claim deductions for donations to charities as well.

Step 4 - Increase your income

It might seem tough in a recession to increase your income, but there are heaps of easy things you can do to add to the family coffers. For instance, is now the time to start that little business you've been thinking about? You might find that by the time the downturn is over, you've built it into a real little goer that can turn into your main source of income.

Another idea is to take a second job or do a little work on the side. It's easy to get a bit of babysitting or bar work a couple of evenings a week. You could also consider getting a bit of freelance work outside your regular work. If your job allows it, you could also volunteer for extra shifts and overtime.

Step 5 - Take advantage of government incentives

Many Australians will receive a payment of up to $900 from the Federal government in coming months. Think hard about how you could best spend this for the greatest benefit to yourself or your family. Perhaps do a little home renovation to increase the overall value of your property, or invest in a solar hot water system, which also attracts government rebates.

Whatever you do to recession-proof your personal finances, remember to act now. Doing something to alleviate financial strain will give you a sense of purpose, help strengthen your self esteem and should improve your financial position over time.  
 DAVID KOCH  excerpt from Yahoo 7

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