Money Saving Tip: Phone Service

Today it is hard to find someone who does not own a cell phone. I admit I was slow in joining and got my first cell phone in 2005. Home phone services are also getting more sophisticated with plenty of features. I have met several people who have scrapped their home phone altogether since both husband and wife (and sometimes kids) have their own cell phone. This is obviously a great way to cut $20-$40 per month from your expenses depending on how much your home phone bill is. I, personally, cant' get myself to get rid of my home phone - primarily for potential emergency situations when the power is out and cell phone towers are overloaded or not functioning. We've seen this happen during many catastrophes in the past. I also ensure to keep at least one phone in the house that is not cordless. This ensures that at least one phone will work even when the power is out.

Even keeping home phone service, you can still trim some costs each month. You can pay for the basic line, which is usually only about $10/month and use your cell service for all your long distance. If you are used to caller ID at home, you can sign up for call forwarding (usually cheaper than caller ID) and have all your calls forwarded to your cell phone.

Many people subscribe to Internet service and/or TV cable with their phone service. Most providers will bundle these at a lower rate so you should also look into what packages are available and what promotions you can utilize. Revisiting your service plan at the end of a promotional period also typically results in more savings.

Establish a Living Trust

If you are married and especially if you have kids, consider establishing a living trust. You are the trustee as long as you are alive and your spouse becomes the trustee if you pass away. If both you and your spouse pass away at the same time (perhaps in an unfortunate accident), you designate who the trustee will be. The whole purpose of this is to avoid having all your assets go through probate upon your death. The trust is the owner of the assets and they can then be given out to your designated beneficiaries upon your death. Probate is a long and costly process that should be avoided when possible.

You will probably want to pay a lawyer to get everything set up for you and he or she can also assist with the transfer of any real property (real estate) into the trust. It is then up to you to move all of your bank and investment accounts into the name of the trust. This might seem like a hassle, or even strange, to have checks written with the name of your trust on them rather than your name, but it will be worth it.

Debt crippling your style?

The recent credit crisis has shown us now more than ever that staying free from unnecessary debt is important for your financial freedom. Surrounded by foreclosures where I live in California and hearing about more every day in other states around the nation, strengthens my opinion that a debt-free life is a splendid goal. That may seem extreme, but it can be done. I understand that the majority of the population needs to enter into debt to purchase a home and maybe even a car. One should be smart in finding the right price as well as the right interest rate. Additional debt can typically be avoided. It is not necessary to take out a home equity loan just have a more extravagant lifestyle. Living by the principle of spend less than you earn will allow you to save up over time to allow for those extras in life.