Frugal Tips for Buying TVs

by Gina Blitstein · 0 comments

New televisions offer amazing features with the potential of amazingly high prices. For most people, a TV is a fairly significant and infrequent purchase. While technology has created a plethora of options to make television viewing more enjoyable, those features come at a price. How do you decide which options are worth spending your television budget on and which ones are more than you need?

Here’s a brief guide to choosing a television to suit your needs and budget:

Types of Televisions

Your major choices in the television market today consist of LCD and Plasma. Their names refer to the technology they employ to create the images they display. Here are pertinent features of each:

LCD:

Weigh less than Plasmas
Less susceptibility to burn-in than plasma televisions (which leaves a permanent ghost-like shadow from prolonged display of the image)
Lower power usage than Plasma displays
Lower price than Plasmas
Selection in sizes smaller than 32 inches

Plasma:

Superior color display and contrast
Wider viewing angles, allowing higher picture quality from viewing positions other than straight on
Little motion blur which affects the picture quality of rapidly moving content

Consider the features offered by LCD and Plasma televisions and compare their value to you with regard to price. For instance, if you watch lots of action movies or play fast-paced video games, paying more for a plasma TV may make sense. If you don’t, then the fact that there’s little motion blur may not me a deciding factor in your overall choice.

What size television should you buy?
The size of your television is important only in relation to the distance from which it will be viewed. That’s because as the display size increases, so does a TV’s ideal viewing distance. To experience the best display, match the ideal size TV with its optimal viewing distance. The ideal viewing distance is roughly two to three times the display size. In other words, unless your room is big enough to accommodate viewers watching from a distance of over 13 feet, there’s no need for a television over 42 inches because the optimal viewing distance for a TV of that size is beyond the parameters of your room. Generally, the smaller a television is, the lower the price, so considering a smaller TV will leave money in your budget to spend on more beneficial features than size.

Terms you should know
When choosing the best television for your budget, it will help to understand a few terms associated with their features, such as:

Display size: diagonal length of the screen
Resolution: the number of pixels (dots of light that comprise the images displayed). In general a higher resolution yields a clearer, sharper image.
Response time: the time it takes the display to respond to input. Displays with slow response times may result in blurring and distortion.
Brightness: the amount of light emitted from the display
Contrast ratio: the difference between the brightness of the brightest color to the brightness or the darkest color displayed. High contrast ratios create a sharper picture.
Viewing angle: the maximum angle at which the display can be viewed at acceptable quality
Color reproduction/gamut: the range of colors that the display can accurately represent

As far as finding a quality TV, stick to the major brands, such as Sony, Samsung or Panasonic. Taking these factors into consideration at the showroom will help you purchase a TV that has everything you need for your viewing pleasure without spending on unnecessary features. Understanding what you’re buying and why is the key to making a wise choice.

13 Free Software Alternatives to Save You Money

by Miranda Marquit · 20 comments

One of the ways that you can save a little more money is to look for free alternatives to software products. Outfitting your computer with the software applications that you need can start to become expensive. The good news, though, is that there are free options that can help you accomplish a number of tasks. Here are some thoughts on free software alternatives.

Office Software

One of the most widely known alternatives is OpenOffice. Rather than spending a great deal (especially if you get the professional version) on Microsoft’s Office suite, you can get almost all of the same functionality with OpenOffice.

Another cool option is Google Documents. I am starting to use Google Docs more and more. You can create presentations and spreadsheets in addition to documents, and it is possible to make use of the “Drawing” option. It’s free, and it’s easy to access from any computer connected to the Internet.

Protection

You want to be able to protect your computer from malware. There are free options that provide a degree of protection to your computer. Microsoft Security Essentials is one such option. On top of that you can find other anti-virus options, like avast! and AVG, as well as ad-ware blockers like Ad-Ware Free. In addition to these free versions, you can get more features if you are willing to pay a fee.

Storage and Backup

Looking for some help backing up files and providing storage on your computer? You can look online for programs like DriveImage and Gladinet (offering cloud storage). SpiderOak and MozyHome offers backup storage for free up to a certain point. Once you exceed a certain amount of space, you will have to pay a fee. Windows Live SkyDrive offers even more storage free. DriverMax will help you backup your drivers, and that can be a helpful thing as well.

If you are looking for helping syncing up, Syncpilicity and Dropbox are good choices. Dropbox also provides online backup.

Operating Systems

It’s not just Windows vs. Mac. There are free operating systems out there that can provide you with the ability to run a computer without spending as much money. One of the most popular is Ubuntu by Linux. You can use Ubuntu fairly easily, and you can find good support for most of the free, open-source software available.

You can also give Jolicloud, another Linux offering a try. This OS is based on the Ubunu Netbook Remix, and is meant for the smaller screen. You can get plenty of apps, and it is easy and quick to install.

Bottom Line

There’s a whole world of free software alternatives out there. You can enjoy a number of options when it comes to saving money on software. Just make sure you are careful download from legit sites. SnapFiles and Download.com offers thousands of free software choices, and are mostly safe. Make sure you are careful, since some free software is loaded with malware that can ruin your computer. Getting your software from a reputable source is absolutely essential.

What are your favorite free software programs?

A Simple Guide to Making a Budget

by Tracy · 1 comment

Many people are resistant to the idea of writing out a budget because they think it’s a waste of time. If this sounds like you, you should know that it’s a sure-fire way for you to get a grip on where you are financially so that you can make a plan to keep yourself in the black.

Once you have a budget, you’ll find that it’s much easier to live within your means and actually start to pay off debt and be able to have the cash on hand to do the things that matter most to you. Knowing that you are in control of your finances can be an enormous stress reliever and rid you of the gnawing feeling in your gut that comes with living paycheck to paycheck.

Don’t worry; you don’t have to use a complicated system or minutely detailed spreadsheets to plan and use a budget. And the great news is, once you have the backbone in place, it’s simple to make little tweaks. The great thing is that a good budget will help make financial decisions a breeze.

Here’s what to do to plan your budget, step-by-step:

1. Set goals. Before you begin to plan, it’s important to know what your financial goals are.

Do you have debt that needs to be paid off?
Would you like to take that dream vacation or pay cash for a new car?
Would you like to have money put away for your child’s college education?

Many people find it extremely motivating to write down their financial goals and put them where they can see them every day. Seeing why you’re sticking to your budget makes it easy to stay focused and on track.

2. Calculate income. You need to know how much you have coming in before you can decide how to allocate what’s going out. If your income is sporadic or unreliable, you’ll want to use the lowest amount that you realistically feel you can count on and work twice as hard to establish a healthy savings for when times are slow.

Wages for yourself, your spouse and any other family member who contributes to the budget.
Interest and dividends from investments.
Rental income or royalties
Miscellaneous

3. List all your expenses. Dig out all of your old bills and make a full list of every expense that your family has. Looking over old bank statements and credit card bills can help you make sure that you’ve left nothing out.

List every bill your family has regardless of how often it’s paid, this includes insurance and taxes that are paid annually.
Put expenses in categories (insurances, credit cards, etc.) to make them easier to calculate.
Don’t forget to include daily expenses like food, gas and haircuts.

4. Don’t forget savings. Pay yourself first! You should consider savings a bill just like electricity and phone and make it a priority to pay it instead of thinking that you’ll just save what’s left over.

5. Subtract expenses from income. This will give you a clear picture of the financial shape you are in.

6. If your income is greater than your expenses…and you are sure you accounted for all expenses (food, entertainment, etc.) here are some options for what to do with your extra income.

Put additional money in savings – this should be your first priority, especially if you have a small or nonexistent emergency fund.
Consult with a financial planner to find ways to invest your money so that it works for you.
Accelerate paying off any debts such as your mortgage, car note, student loans or credit cards. Ideally, you’ll want to pay off the debt with the highest interest rate first, although many people have had success with the snowball method, where you pay off the smallest debts first and apply that minimum payment to the next smallest debt until it’s all paid off.

7. If your expenses are greater than your income…This is a tough situation and you’ll have to do some serious thinking about how to deal with this. Making the decisions will be tough, but this is not a sustainable situation and you will have to find a solution.

Some options to consider:

Find ways to earn extra income. If both spouses are not working, it might be necessary for the stay at home spouse to find a part time job or way to work from home.
Do you have possessions you can sell to pay off debts and give yourself more breathing room?
Can you cancel or put a hold on unnecessary services such as cable tv or a gym membership? If you’re worried about a cancellation fee, call to ask about the possibility of being put on a hardship plan.
Contact your creditors to find out if you qualify for any hardship plans, reductions in interest or other programs that can reduce your monthly payment.

It may seem daunting at first, but you can make and stick with a budget! Once you get started, you’ll wonder how you ever lived without one.

Photo Credit: RambergMediaImages

Look and Feel Great with Homemade Beauty Treatments

by Gina Blitstein · 1 comment

Living frugally doesn’t have to mean that you can’t take good care of yourself and look your best. It’s important that you pamper yourself a bit so your frugal lifestyle doesn’t begin to feel like a deprived lifestyle. It’s true, though, that commercial beauty products can really be costly — and complicated!

The good news is that, with a little know-how and preparation, it’s not always necessary to break the bank in order to have products to help you look your best. Here’s a collection of simple, frugal beauty products for skin and hair that you can easily make at home from ingredients that are readily available and that you may already have on hand.

Homemade Beauty Treatments

Facial masks: Mix the ingredients for desired mask, apply to face (avoiding eye area), allow to dry, then rinse off with cool water.

Normal skin – 1 mashed medium-sized avocado, ½ teaspoon lemon juice and 1 egg white, beaten until frothy
Oily skin – ½ cup strawberry, cucumber or tomato puree and 1 teaspoon lemon juice
Dry skin – 1 egg yolk, slightly beaten and 2 teaspoons olive oil added in drops to the yolk

Scrubs: Mix the ingredients and apply on appropriate part of body using a gentle circular motion.

Face – ¼ cup oatmeal, 1 teaspoon honey and enough buttermilk to make a paste
For rough skin throughout the body –

elbows, knees and heels – juice of ½ half a lemon and coarse salt

entire body – 2 cups ground coffee, ½ cup raw sugar or sea salt and 2 teaspoons massage oil

Toner: Mix the juice of 1 lemon with a quart of mineral water; apply to face with a cotton ball.

Puffy eye treatment: Apply cucumber slices or cold teabags to closed eyelids and rest for 15-30 minutes.

Intensive moisturizer: Coat chapped and dry hands liberally with petroleum jelly and wear cotton socks on your hands overnight.

Hair treatments:

Strengthening protein treatment – Blend 1 tablespoon lemon juice and 3 whole eggs in a blender. Apply mixture to clean damp hair and allow to sit for 15 minutes. Rinse hair with cool water.
Dry hair treatment – Wet and towel-dry hair. Apply warmed vegetable or baby oil to roots and massage gently into scalp. Cover head with a warm towel for 15 minutes. Shampoo.
Oily hair treatment – Open an inexpensive beer (ale or lager rather than wheat beer) and allow it to sit and become flat for 2 hours. If it’s in a bottle, transfer the beer into an unbreakable container. Wash your hair, then pour the entire beer over your head, massaging throughout hair and scalp. Leave on for at least 2 minutes. Rinse completely with cool water. Follow with your regular conditioner if desired.
Dandruff treatment – Crush an aspirin into your regular shampoo and shake well to distribute evenly.

These homemade preparations are natural and effective in addition to costing only pennies. Your arms and legs (and face and hair) can be beautiful and feel pampered without spending an arm and a leg on specialized beauty products. So go ahead and treat yourself. You’ll feel richer for it!

Do you have homemade beauty concoctions that are inexpensive and effective?

This article was compiled from various sources, including Haley’s Hints, by Graham and Rosemary Haley.

Bigger Isn’t Always Better: Smaller = Frugal Living

by Miranda Marquit · 0 comments

One of the things that has become rather apparent since the recession is that bigger isn’t always better. Indeed, in some cases bigger is just…bigger. And more is just…more. And, of course, bigger can more more expenses. If you are looking to live a more frugal lifestyle, you might consider areas where smaller is better for your budget.

House

How big of home do you need? In some cases, you might really need to upgrade to a larger home. However, it is important to understand your motivations behind moving into a larger home. What if it were better (and more conducive to your frugal living goals) if you actually downsized. Here are some things that a smaller house comes with:

Smaller mortgage payment.
Less money spent on utilities.
Less time spent on cleaning and maintenance.
Encourages you to get rid of clutter.
Helps you stop buying things — after all, you don’t have room!
Chance to spend more time with your family.

You can probably think of a number of other advantages that come with downsizing a home. Moving into something smaller might actually be better for you.

Car

Honestly, sometimes you need a bigger car. I grew up in a family of five. A minivan was a must. But when you have two kids, is a huge Hummer really necessary? It is worth noting that the insurance for a SUV is usually higher than the premiums for a smaller car. Even minivans often have lower insurance costs than SUVs. It’s something to think about.

On top of that, the bigger your car is, the more likely it is to guzzle more gas. That means that you spend more money fueling up. See what you can do about a smaller, more fuel efficient car. And consider whether or not your “needs” are really wants.

Waistline

Consider your health. The cost of a bigger waistline can be larger than you might imagine. Not only are you paying the monetary costs for unhealthy food (and more of it), but you are also paying costs in health. Additionally, your health care costs rise as your waistline expands. There are plenty of ways to create a frugal home gym, allowing you to get in shape at a low cost. You’ll save money and feel better, too.

Electronics

Before you purchase a big screen TV, or get that awesome computer, consider your needs. What will you use it for? Do you really need a computer with a massive hard drive and a 27-inch screen? You might if you use the computer for some specific projects that have to do with work, but most of us don’t need something so fancy for casual family use.

Likewise, a huge TV is rarely necessary. Is your viewing experience really enhanced that much when you have a 60-inch screen instead of a 42-inch screen? I’m actually happy with my 32-inch screen. Bigger electronics suck more electricity, costing you money. Not to mention the fact that they are more expensive, due to their size.

Before you get carried away with big items. consider your options, and your motivations. In many cases, you might be better off with something smaller.

Food Storage Facts for Storing Food Properly

by Gina Blitstein · 1 comment

We all know that frugality only begins in the marketplace. What you do with items you purchase once you get them home is equally important to insure they are used to your best benefit. One of the most money-wise habits in your kitchen is to store the foods you purchase so as to avoid spoilage, which would result in wasting money and time.

Food Storage Facts

Refrigeration/Freezing

To inhibit bacterial growth, refrigerator temperature must be 40°F or colder. Freezers should be 0°F or colder.
Foods remaining continuously frozen will keep indefinitely.
Foods requiring refrigeration, whether directly from the grocery store or left over after a meal, must be refrigerated promptly. Foods sitting at room temperature for more than two hours must be discarded due to the bacterial growth that will occur.
Defrost foods that take longer than two hours to thaw in the refrigerator to keep their temperature below 40°F.
In the case of a power failure, you may not necessarily need to throw everything in your refrigerator away. The good news is, a full freezer will keep foods frozen for about two days; a half-full freezer about one day. In fact, some foods that may have partially or even completely thawed in your freezer may be safely refrozen if they still contain ice crystals or are below 40°F. Foods in a closed, unpowered refrigerator can stay at a safe temperature up to four hours.

Shelf Storage

Store canned foods and other shelf-stable products in a cool, dry place, away from extremes of temperature.
High-acid foods, like tomatoes and other fruit, can be stored up to 18 months; low-acid foods like meat and vegetables, two to five years. Although can linings might discolor or corrode when the metal reacts with high-acid foods like tomatoes or pineapple, as long as the can isn’t damaged, the contents should be safe to eat.
It’s important to inspect canned goods before consuming their contents. Botulism is a rare but deadly toxin that can grow in canned foods. Never use food from containers that show possible “botulism” warning signs which, according to the USDA, include: leaking, bulging, or badly dented cans; cracked jars or jars with loose or bulging lids; canned food with a foul odor; or any container that spurts liquid when opening. If you even suspect the container, dispose of it before even tasting the contents.

Product Dating

The United States does not employ a nationwide food dating system. Food dating of some type, however, is practiced in more than 20 states.

Where food dating is enforced, you’ll generally find these dates:

“Sell-By” tells the store how long to display the product for sale. Buy the product before the date expires.
“Best if Used By (or Before)” is recommended for best flavor or quality. It is not a purchase or safety date.
“Use-By” is the last date recommended for the use of the product while at its peak quality. This is not a safety date. Even if the date expires during home storage, a product should be safe and of good quality so long as it has been stored properly.

If a product has a “sell-by” date or no date, cook or freeze the product by the times on this USDA chart for storage times of dated food products.

You shop wisely, so continue that behavior once you get home. Use good judgment with the food you purchase: store it properly and at the proper temperature and you’ll fully reap the benefits of your frugal shopping efforts by not wasting what you’ve bought due to spoilage.

Watch Out for These Signs of Fraud

by Miranda Marquit · 1 comment

One of the things that can really put a damper on your efforts to get more for your money is a scam. There are a number of schemes out there, from phishing, to advanced fee loans, to health products, to the chance to get in on something early, you could find yourself parted from your hard-earned money before you realize what is happening. Even the smartest people sometimes fall prey to fraud. You can, though, reduce the chances that you will be taken in. Here are some red flags to watch out for:

Your Gut Offers a Warning

Your intuition might be more right than you thought. If there are warning bells going off in your head, it’s a good idea to listen to them. If you think that something is too good to be true, it probably is.

Contact Information is Scarce

Another tell-tale sign of a fraudulent scheme is the difficulty in finding contact information. You might be able to correspond via email, but it is hard to find a telephone number or address. In some cases, a fraudster might have a phone number, but it’s difficult to get a physical address. If you are having a hard time finding contact information, it might be a sign that you’re dealing with a fly by night operation.

You Receive an “Official” Envelope from a Company You Don’t Recognize

Watch out for the envelopes that appear in your mailbox from “member services” or as some sort of “alert.” These types of offers are rarely something totally above board. While it may not be fraud per se, it still might be an offer that comes with hidden fees and extra charges. If you don’t recognize the company, be extra careful.

Your Online Research Raises Red Flags

A good idea is to enter the company name, or the promotion name, into a search engine. You can also add the word “review” after the name. Look at what people are saying about it. If there are a lot of complaints about the promotion, or if it is referred to as a scam, it is a rather obvious sign that you should steer clear.

You Have to Make a Decision RIGHT NOW

High pressure tactics can be another red flag. If the person trying to hook you tells you that you have to make a decision immediately, or that the offer won’t be available after 48 hours, you could be looking at a scam. Most legitimate companies and opportunities don’t just disappear immediately.

Another thing to beware of is the idea that you are among a select few chosen for this “opportunity.” It it requires a fast decision because you will lose your place, or if it is so exclusive that you are being approached because of some “unique” quality, be careful. Chances are it’s a fraudster appealing to your vanity.

You Have to Wire Money to a Third Party

Paying huge up front fees is always a tip off to a scam. However, it’s an even bigger tip off if you have to wire money to a third party. And you should run screaming the other direction if you have to wire that money to a third party in another country. Most legitimate businesses will accept a credit card, which protects you to some degree from fraud, and which can be traced. Once you wire money, it’s gone.

Be on the alert for signs of fraud. If it seems fishy, stay away. Don’t let your fear of “missing out” sway you into doing something you’ll regret even more.

This post was shown at the Totally Money Blog Carnival.

10 Tips for Eliminating Food Waste

by Tracy · 3 comments

We throw away far too much food in this country. Often, we have great intentions and faithfully wrap up leftovers, only to have to toss them after a few weeks because they were never eaten.

Wasting food is not only money out of our pockets, but also a waste of natural resources. Less waste means less fuel used to produce and transport and store food, which is good for the environment.

1. Put away leftovers as soon as possible after cooking. If you’re not sure you’ll eat it in the next couple of days, wrap them up and put them in the freezer.

2. If you’d like to have leftovers for lunch the next day, try dishing out a meal sized portion before you plate dinner. Often, we put too much food on our plates and the excess is either tossed or we overeat, which is not healthy.

3. Closely related to number two, watch portion sizes, especially for small children. Toddlers and preschoolers are notoriously unpredictable eaters. One day they might out-eat you and then eat scarcely anything for the next three.

4. Learn to stop being so anxious about running out of food. Keep your fridge and pantry stocked with healthy choices that can stretch a meal if everyone is a bit hungrier than usual. Don’t consistently make twice as much as your family will eat unless you have a plan to use up the leftovers.

5. Pay careful attention to use by and expiration dates on the perishable food you buy. Make sure you’ll be able to eat it all or freeze it before the use by date.

6. On the other hand, food does not magically go bad at 12.01 AM on the expiration date so use good judgment before tossing out food (and don’t eat food that seems spoiled even if the date on the package says it should be safe). Canned and boxed goods are often safe to eat for many months after the date on the package, but might be stale or of diminished quality.

7. Learn techniques for making new meals out of leftover foods. Fried rice, frittatas, soups, stews and casseroles can all be made incorporating bits of leftover meat and vegetables. Once you learn the techniques, you’ll be able to make delicious, inexpensive meals out of scraps that are too small to serve as a meal on their own.

8. Keep your fridge, freezer and pantry clean and organized so that you can see at a glance what needs to be used up. Be sure to label everything that goes in, especially the freezer since many frozen foods look alike.

9. Use tough love on your family. You can’t force people to eat what they don’t want to eat, but you don’t have to indulge them, either. If your children are wasting food, then you’ll have to monitor their snacks and dole out portions.

If you’re the one in charge of the shopping, don’t buy foods that are often left half-eaten or that disappear far too fast. After all, over-indulging on one food regularly is a waste of food, too, just not the kind we normally think of when we think about waste.

10. Do make notes about what works and doesn’t work for you and your family. Maybe you’re fine with eating the same thing every meal until it’s gone or maybe it works better for you to freeze it and have it again next week. Perhaps you don’t like leftovers stew but you do like leftovers quesadillas. Learn what works and what doesn’t to save yourself time and money.

What are some of your ideas for using up leftovers?

Photo Credit: jbloom

Baby Food Basics: Make it Yourself and Save

by Gina Blitstein · 1 comment

There is little that’s more important to an infant’s development than superior nutrition. During infancy, a baby’s body and brain undergo dramatic growth that will impact his or her health and well-being. In addition to physical growth, during the first few years he or she develops the eating habits and attitudes that will sustain him or her throughout life. That’s why food for baby should be so much more than what is provided in those pricey little jars.

You can take control of your baby’s nutrition and do so at a fraction of the cost of commercially prepared baby food by making it yourself. It’s very simple to do and will insure that your baby receives high-quality nutrition and develops a taste for ‘real’ food while you save money.

Making Homemade Baby Food

Rather than thinking of baby food as something completely different than adult food, think of it simply as a modification. Babies who have no allergies or sensitivities can, in general, eat what adults eat — according to the nutritional requirements for their age, of course. Consult your pediatrician for guidelines for feeding your infant with regard to specific foods and quantities, then instead of purchasing those foods in a jar, serve the real thing from your kitchen. All you need are the foods themselves and a small food processor. Even if you have to buy one, it will be a sensible investment, considering all the money it will save you in the long run.

*Remember: discuss your baby’s food readiness and appropriate foods and quantities for his or her age with your pediatrician.

Here’s a basic guide to feeding baby from your kitchen instead of from a jar:

First foods: Most babies begin solid foods at 3-4 months of age. The first solid foods a baby can begin eating are pureed fruits and vegetables such as bananas, peaches, pears, carrots, sweet potatoes and squash. Simply purchase the actual foods (fresh or frozen are most nutritious). Introduce only one food to baby at a time and serve the same food for a few days to insure that he or she tolerates it well.

Puree perfectly ripe fruit or well-cooked vegetables in the food processor to a smooth consistency, adding a touch of liquid such as water, juice or formula as necessary. If you make more than baby can eat at a sitting, the extra can be stored for a day in the refrigerator or frozen in an ice cube tray for future use.

As babies get a few months older, they can eat a wider variety of fruits and vegetables, including pureed berries, citrus fruits, green beans, spinach, peas and corn.

Second foods: Around 8 months of age, babies can begin eating proteins, which include meats, egg yolks, chicken, cheese and legumes. At this stage, babies can eat the same meats served to the rest of the family, pureed or chopped to an appropriate consistency. The components of any meal can be fed to baby, so long as the seasoning is appropriate. Feeding your baby real food will teach him or her about flavors and textures so those things will not be foreign to his or her taste buds as they develop.

It’s important to encourage babies of this age to begin feeding themselves. Appropriate finger foods can be small chunks of well-cooked vegetables, ripe fruits, chopped meats, toast, crackers and noodles.

You already have nutritious foods in your house, so why purchase separate food for the baby? There’s no magic to baby food — you can make it yourself simply and for pennies per serving.

Boost Your Savings: Looking for Higher Yields

by Miranda Marquit · 0 comments

You know that saving money is an important part of living a frugal lifestyle. Indeed, it is important to build up an emergency fund so that you are prepared for a rainy day. This way, if something comes up, you will not have to go into debt to cover your expenses. Keeping your money in a traditional savings account at a brick and mortar bank can mean easier access to your funds, but it also means that your money isn’t really doing much in the way of working for you. If you want to boost your savings, it can help to look at other options.

High Yield Savings Account

Instead of using a regular savings account, which currently yield less than 0.5% in many cases, you can look into a high yield savings accounts. It is true that high yield accounts themselves are only yielding a little more than 1%, but that still represents a better return. If your money is sitting in the bank for emergency purposes, it is a good idea to do what you can to earn a little extra if possible.

Some brick and mortar banks offer high yield savings options, but you may need to have a minimum balance. If you are looking for a high yield savings account without a minimum requirement, you might consider an online bank account. There are a number of bank accounts that offer higher yields online. You will still only get a little more than 1%, but you might not have to worry about a minimum. You do, however, have to realize that access to your money will be a little more difficult. You will have to plan to wait a few days to get your money.

Emergency CD Ladder

If you have the patience to build a CD ladder, you can create one for your emergency funds. The nice thing about a CD ladder is that you can get better yields. The longer the CD term, the higher the yield. However, if you have your money locked up in a CD, you will have to pay a penalty to access it. You can create a CD ladder, using a plan that allows CDs to mature every three months, or you can create one that allows for maturation yearly (or a combination of the two).

A CD ladder is helpful because it provides a way for your to boost your savings yield, while allowing regular access to your money. Additionally, you can roll each CD over as it matures, giving you the chance to take advantage of rates as they rise. If interest rates go up, you can renew at a higher rate after your CD matures. Be careful, though, you want to have a plan for bridging the gap between an emergency and when the CD matures. Having to withdraw money from your CD early can result in a hefty penalty.

With a little planning, it is possible to boost the yield on your emergency savings, helping your money work a little bit more for you.

This post was featured in the Carnival of Wealth.

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