SmartyPig

Saving money has become all the more important after the economic meltdown. Everyone seems to agree that it is the most essential part of one’s financial life. However, the huge number of Americans falling into debt and resorting to credit card debt consolidation leaves little doubt that we still have a long way to go to become wise with our money management skills. We need to understand that just realizing the importance of saving money without practically implementing it in our lives is not going to take care of our financial problems.

So, if you are serious about saving money, then it is necessary to bust some money saving myths which you ‘think’ are sound. The following are some myths that you should be aware of to become more dexterous with your money saving skills:

1)    Bulk buying always saves you money: It is true that unit price of bulk buys will always be cheaper. But the temptation of saving a huge amount with bulk buys usually lures one to purchase more than what is required. If you ultimately do not use what you purchase, then where is the saving?

2)    Running air conditioner in your car wastes gas: Keeping your car’s windows open for ventilation instead of using the AC can cost you more. Opening windows actually increases the drag which boosts gas consumption. So, next time when you use AC to make yourself comfortable, do not feel guilty!

3)    Sales shopping helps to save money: You never fancied buying gadgets and gizmos. Now there is a sale going on and you can’t wait to buy one. The point is that if sales tempt you to purchase something that you would not have spent on otherwise then you are just inviting unnecessary expenditure.

4)    You get what you pay for: Though this might be true in some cases, higher prices do not always guarantee higher quality. For example, generic drugs are medically considered to be as effective as their brand-name counterparts.

5)    Hand washing dishes saves more money than a dishwasher: Washing dishes with hands typically uses a lot of water. Go for an efficient dishwasher and it can help you save by minimizing water consumption

6)    Lowering your standard of living saves money: If you deprive yourself and lower your standard of living to save more money, there would hardly be any motivation to continue with your savings. Be creative and come up with innovative ways to make more money. Setting up a passive source of income, affiliate marketing or freelance writing are just some of the good ways to give a boost to your savings.

7)    Saving money depends on how much you earn: Regardless of what your income is, set aside a certain amount of money every month for your savings account. It is wrong to think that you cannot save because of low income. A good idea is to set up an automatic transfer of a fixed sum of money from your checking to savings account every month.

SmartyPig Guest Post by Jack Reed

SmartyPig kicks off our video series, “Meet the SmartyPig Team” with customer support manager, John Grask.

Enjoy!

Like many, my debit card gets a regular workout. And while most times I don’t dip into my savings, my saving and checking accounts are linked which means I’m one irresistible pair of shoes away from taking two steps back. Goal-based savings programs like SmartyPig “provide a barrier preventing you from accidently (or intentionally) spending money that should go to funding your future,” writes Christina Couch at Bankrate.com in her recent article featuring SmartyPig and goal-setting accounts.Saving for goals like vacations or back-to-school clothes with SmartyPig helps to keep your finances organized and you on track financially. People are significantly more likely to keep a goal once it’s down on paper, posted on Facebook or shared with family members. It’s called accountability.

Additionally, saving with SmartyPig is fun and easy. One user has said her family “loves watching their pig fill up.” And posting updates for your world to see helps to create that accountability, update others on your progress and even grab a donation or two from those supporting you. And if fun, easy and supportive aren’t enough incentive for you, check this one out: rewarding. Because once you hit a goal (or even before) SmartyPig offers you cash back options of up to 14% at top retailers giving those vacations or shopping trips an extra kick.

Take the advice of Bankrate.com and do the right thing for your savings goals. Set a target and fire away!

Wishing you successful saving.

Sarah Foss, SmartyPig’s Media Mad Woman
SFoss@SmartyPig.com

They’re the kind of worries that keep you up at night: job loss, an illness, missed car and house payments – the events that cause financial crises. I remember feeling this panic a few months back when our furnace suddenly went out. It was around the holidays, spending was high, and then the most expensive repair a homeowner can have was suddenly in our face. Lucky for us, we had a few safety nets: Emergency accounts, reliable family members and insurance. Still, it was a panicked time. How do we combat that?

Trent Hamm, The Simple Dollar Blogger notes that while it’s not fun or pleasant to think about failure, spending some rational time doing so allows you to make plans that help reduce panic. Hamm suggests a few key safety nets of his own. First: insurance. Life, home, disability and auto, cover your bases. Second: choose reliable hands to turn to in times of need. Help others when you’re flush, and one day they might repay the favor. Third, and my favorite, the emergency fund. My minor crisis turned into a simple repair, but without my emergency fund my new furnace might have been paid for by my son’s college fund or husband’s 401k. Many SmartyPig users have emergency funds or use us solely for that purpose. The funds are slightly out of reach and not tempting for non-emergency situations. They can also be added to little by little. So if life is throwing you curveballs regularly, you can still grow your funds while you pay to put the fires out.

There’s no reason to stay up at night worrying. Contribute a few extra bucks to your emergency fund today. Feel better?

Wishing you successful saving.

Sarah Foss, SmartyPig’s Media Mad Woman
SFoss@SmartyPig.com

Is your tax refund padding your bank account? You’re not the only one. The average refund for 2010 was $3,129 and most expect around the same, if not higher this year. A Capital One survey states 21% of tax fund recipients are spending their dough on new clothes, vacations, and electronics. One smart shopper told us he deposited his newfound funds into a SmartyPig goal already and cashed out to a Macy’s gift card. The amount he received in cash back was obscene! Remember SmartyPig user Joe? He took advantage of the Travelocity Perks and earned himself a bundle.

So if you’re going to spend, put that money to work for you in the short-term with SmartyPig’s sky-high interest and long list of Retailer Gift Card providers. And if instant gratification isn’t your thing, do what most refund recipients are doing and save that chunk of change. Is a summer vacation in your future? What about back to school shopping? Take your funds right to the pig and start maximizing your dollars today. And if you don’t have an emergency fund, wouldn’t now be a great time to start one of those?

Whether you’re spending or saving, SmartyPig makes those tax dollars work for you!

Wishing you successful saving and spending.

Sarah Foss, SmartyPig’s Media Mad Woman
SFoss@SmartyPig.com