If you're like most people, paying all the bills each month is very difficult!

If you are barely making ends meet, you might try these tips on how to find extra money each month.

The first step in finding extra money each month is to complete a buget.  You need to be very honest with yourself and list everything you are spending money for each month.

Yes, even Starbucks!

Now that you know where you stand, financially, it's time to go to work to see where cuts can be made.

Let's start with you credit card bill or bills.

I know you don't want to hear this, but STOP BUYING THINGS ON CREDIT!  I know the rationalization, but if you really want to cut your budget, you cannot justify an extra $10 here and $10 there.  It all adds up...way too much!

If you have credit cards with interest rates of 20% or more, you should be able to get them lowered.

Call the credit card company.  The number will be on your bill. 

When you get the representative on the line, tell them that you must cut your rates and need them to lower yours.  If they refuse or say that they can't, tell them (nice way of threatening) them that then you will have to shop around for another creditor to transfer your balance to.

Don't give up!  The credit card industry can modify the rates.  Obviously, they want to charge as much as possible, so they train their representative to be tough, but YOU HAVE TO BE TOUGHER!

By the way, if you have too much credit card debt and are not able to keep up with the monthly payments, there are several option that may help.

What about that CABLE BILL?

If your not careful, your cable company may slowly raise your bill.

We have a cable company (I won't use their name, but they are BIG!) and have the bundled package (cable, phone, internet, etc.).  Our monthly bill is usually about $200. Last month, the bill was $260! That's almost a 30% increase!  WHY????

We called the company and was connected to a customer service representative.  She said that there was nothing she could do about it, that it was just a "normal" rate increase.

So, we asked to be transferred to the LOYALTY OR CUSTOMER RENTION DEPARTMENT.

Since we had been "loyal customers for so many years...", they said they would not increase our bill!  Again, you have to be tough and don't give up!

Utility Bills

It seems that utility companies can get away with raising rates anytime they want to!  I know there is some kind of "government application process" each utility company must go through, but when is the last time you saw your rates lowered?

So here's a few tips you can use to cut those utility bills:

Your Heating Bill

We'll talk about how to cut your ELECTRIC or GAS bill later, but first, when is the last time you checked your home for air leaks or drafts?

Yes, you could call a company that does this, but not only will it cost you, most likely they are going to recommend replacing or updating your equipment!

Check all of your windows by feeling for cold drafts of air.  If you feel a little cold air, that means that your warm air is most likely going out!

You can get several types of sealers or caulking for windows and doors at your local home improvement store.  If your not sure which one you should use, most of the sales reps can help.

What about your old ELECTRIC OR GAS FURNACE?

I'm a do-it-yourself guy, and each time I go into one of our local home improvement stores, there's a sales person trying to get me to "upgrade" my furnance.

Yes, mine is an older model, and yes, the new ones are much more efficient, but I'm having a hard time justifying spend $4,000 - $5,000 to save $30 -$50 on my electric or gas bill!

I know there are government programs that may give me a credit, but I know that by just checking all of my windows, doors, under the sink, etc., I can save a lot of money, and you can too!

WATER BILL

Check for leaks!  Just a little faucet drip can end up costing a lot of extra money on your water bill.

Not just the faucets, but check those toilets!  If you hear them continuing to run, $$$$ down the drain.

Once again, you should have to call a plumber, but can get great do-it-yourself help online or at your local home improvement store.

INSURANCE RATES

I know you have seen the ads on TV about saving up to 15% on you car insurance, but have you compared your current policies?

Get out your insurance bill (car, home, other) and go on line to compare. I'm not advocating reducing a lot of coverage to save money, but you may not need all of the "extras" you have been paying for.

If you are paying for your own HEALTH INSURANCE, it's time to check it out.  Most health insurancd premiums can be dramatically reduced by electing to increase your deductible and/or co-pay.

These are just a few tips on how to find extra money each month, and you may discover more!

What if by just following a few of these suggestions, you could find an extra $50, $100 or more each month?  Is it worth it...you bet it is!  Good luck!

Earlier this week, in the post Money Makeover for the New Year - Part 1, I talked about the first four steps toward making positive changes to help you achieve financial fitness in the New Year:

Step 1: Set Your Financial Goals

Step 2: Live Within Your Means

Step 3: Stop Using Your Credit Cards

Step 4: Keep and Eye on Your Credit Report

Today I will finish up this two part series with the final 4 steps of your Money Makeover:

Money Makeover for the New Year - Part 2

Step 5:  Creat an Emergency Fund

When life throws an unexpected event at you, and we all know this will happey, having an emergency fund can make all the difference.  Make a committment to save 5% of your income for the first 3 months.  Then bump that up to 10% for the next 3 months.  By the end of the year, saving will become a habit and you will have begun to build a sizable emergency fund. 

To help make this savings plan automatic and "pain-free", set up and automatic transfer of funds from your checking to your savings account after each pay day. Breaking up your savings over them month will seem easier than coming up with the whole ammount at once.

Step 6: Always Pay More than the Minimum Payment

I can't stress this enough, so I will repeat it...ALWAYS PAY MORE THAN THE MINIMUM PAYMENT!  Even if you can only add $5 or round your payment up to the nearest even number.  Every extra dollar you pay will help you eliminate your debt faster and save you thousands on interest over the life of your debt.

Step 7: Contribute to Your Employers Retirement Plan

Most employers will match your contribution into the companies retirement plan such as a 401K.  Not only are your preparing for your future, you are getting FREE MONEY from your employer!  If you are self-employed or if your employer does not offer a retirement plan, you can invest in an Individual IRA, Roth IRA, and/or plan for self-employed persons.

Step 8: Don't Hesitate to Ask for Help if You Need It!

After you have taken a close look at your budget and your overall financial situation, you may feel like eliminating your debt is never going to happen.  This couldn't be further from the truth.  You have several great debt relief options available to you. 

If you have made financial New Year's resolutions in years past without success, don't give up!  Try again using these 8 steps to a Money Makeover to build new habits and provide a better financial future for you and your family.

Welcome to 2012!  It is a new year, and most people are thinking about a total body makeover.  That's right, it's time to start that diet and get back to the gym.  But I bet your finances could use a makeover too.  Now is a great time to take a close look at your financial situation, set some goals, and make positive changes to help you achieve financial fitness in the New Year!

Money Makeover for the New Year

Step 1: Set Your Financial Goals

Before you can reach your goals, you first have to figure out what those goals are.  Do you need to eliminate debt, start saving for retirement, or maybe buy a house?  These things won't happen on their own.  Start by putting your goals in writing, so you can make a plan to achieve them.

Step 2: Live Within Your Means

Creating a monthly spending plan is aboslutely essential to your Money Makeover.  Start by making a list of your FIXED monthly expenses (rent, mortgage, utilities, car payment) and your VARIABLE expenses (groceries, entertainment, "mad money")  Use this FREE BUDGET SPREADSHEET will help make sure that you don't forget anything. 

Now comes the "hard" part.  Keep track of your spending each and every day.  At the end of your first month, you will be able to see how well you were able to stick to your new spending plan and make adjustments as necessary.  Maybe you don't need as much for groceries as you thought.  That extra money can be added to your savings or used to pay more to your credit cards to help your reach your financial goals even faster!

Step 3: Stop Using Your Credit Cards

In step 3 you learned how to live within your means.  That means only spending what you make and NOT reaching for those credit cards!  If you are scared to cut up your credit cards, you can freeze them in a block of ice to make them very difficult for to use! 

Instead of using your credit cards, look to your budget and only use cash, checks or debit cards.

Step 4: Keep and Eye on Your Credit Report

You should check your credit report at least once per year. This is quick and easy at www.annualcreditreport.com. By checking your credit report regularly, you can easily find and correct any errors.  For more information on DIY Credit Repair click here -->> What You Need to Know About Credit Card Debt Repair

Get started on these first 4 steps to your Money Makeover for the New Year, and check back later this week for part 2!