Michael G. Minter, the managing partner of Mintco Financial joins Gayle Guyardo the host of the global health and wellness show Bloom with ways to save money during the recession.
Minter advices to stay the course with a consistent contribution monthly to your retirement accounts, especially taking advantage of free money your companies match. Contribute at least to the employer matching for retirement funds. Pay-off higher interest rate debts first.
Minter told Guyardo, “consider holding off or stay away from financing any high-priced items if possible since interest rates are so high. If you need to make these purchases, look to 0% financing options over 12-18mths or more.”
He went on to say, ‘If you have cash built up use it, and or take advantage of Cash-Back credit cards, they pay a back upwards of 5% what you spend, making sure you pay in full every month, which is another form of free money, which you use to invest or pay down debt.”
Minter believes now is a good time to shop credit cards and rates, and limit yourself and family to, no more than 2 cards. Call your credit card companies and ask for promotional interest rates available and cash back cards with the lowest fees/costs.
Call your cable company, phone carrier, etc., and negotiate especially if you have been with them for a long time, look to other carrier’s new customer promotions.
“This is very important also with your insurances. Your car/homeowners, this should be a yearly call, but now is very important to shop around the rates, as they many times change yearly.” Minter said.
Minter said the same holds true with your life insurance policy or policies. Call a broker who has all companies available. You may have been paying on for many years or paying for a policy that doesn’t fit your needs anymore. There are many options to take advantage of the cash-up or reducing or even eliminating your premiums.
He also shared the 10% rule: putting 10% of pay into savings account. Once you adopt this mindset and action, it will also provide great value to when we are faced with similar times in the future.
The next tip, diversify your investment portfolio to spread out your risk. “Staying the course with your investments — what goes down in the stock market usually goes back up (keep a diverse portfolio). There will always be recessions and the best way to prepare is to save/invest a part of every paycheck.”
Additional advice is to dig your well before you are thirsty. Minter quoted Warren Buffett, “When the tide goes out, we all learn who’s been skinny-dipping.”
Another way to save is to reduce eating out. “Buy your pizza to take home instead of going out to a restaurant. Or buying beer to take home and drink instead of going to a pub.”, Minter said.
Keep an eye out on the cost difference between branded vs. generic. “People will also buy cheaper versions of products they like – so shop branded products will increase at the expense of branded goods.” he said.
Finally, Minter said rethink everything you buy. Maybe instituted a “one online purchase per week” rule.
He suggested, dumping everything into a list, which then you can buy on Saturday or whatever day you decide works for you after you thoroughly review it and decide whether you truly need to make the purchase.
You can watch Bloom in the Tampa Bay Market weekdays at 2pm on WFLA News Channel 8.
Bloom is now part of DBTV Network Seen In Over 300 Million Households worldwide, including Roku TV, and Amazon Fire.
Bloom also airs in 40 markets across the country, with a reach of approximately 36 million households, and in Puerto Rico, U.S. Virgin Islands and Madison, WI.