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Ten ways you can save every day

1. Use the 24 hour rule. 72 is even better.

   See something you have to have? Go home and think about it. Give yourself 24 hours to decide if you really have to have it. 72 hours is even better. I've saved myself hundreds of dollars this way, and you know what? My life is just as satisfying without those things that, at the time, I thought I just had to have.

2. Replace one money guzzling hobby with something free.

   If you're an avid book reader, try a trip to the library instead of the book store. If you're a golfer, substitute one tee time a week for a trip to the community driving range. The important thing is not to give up the things you like! Instead make small, occasional substitutions that will save a little bit here and there. The little things add up over time.

3. Skip the visit to your favorite store.

   Years ago I realized I spent hundreds of dollar each time I walked into Target. I cut my spending in half by allowing myself one trip a month. So next time you're tempted to stop in at your favorite store, just drive on by. Instead of shopping, go for a walk, grab a cup of coffee, or read a book.

4. Downsize.

   In his book A New Earth, author Eckhart Tolle talks about our tendency to identify ourselves, and our self worth, by our things. Well, you are not your things!

   The sense of self respect you get when you make smart financial decisions is worth far more than the ego-centric feeling of driving the fancy car and wearing the latest styles. Evaluate lifestyle changes you can make. It might be your house, your car, your clothes - whatever it is, downsize where you can.

5. Drive less.

   Carpool once a week. Consolidate trips, running errands all at once. Even better, consolidate and carpool all at once by running errands with a friend.

6. Reduce utility bills.

   Do you really need call waiting, 3-way calling and all the other extras the phone company charges you for? Scour your phone bill and see if one or two of those extras can be turned off. In addition, turn up, or off, the air conditioning or heater during the day. Yeah, it's not quite so comfortable when you first get home, but the savings will add up.

7. Save on eating out.

   Take your lunch once in awhile. Before you head out for dinner, try a glance through the pantry first, and see what creative meal you can come up with at home. If you have to eat out frequently, skip the sodas and ice teas. Drinking water is not only better for you, for some who eat lunch out every day, this simple substitution will save them over $30 a month.

8. Buy the things you want for less.

   Read Save Money: Buy for less. This article is packed with great ideas that will help you buy the things you want for 20-50% less. It may take a little extra work, but remember, you're getting paid for your time with significant savings!

9. Work out at home.

   Health and fitness is a priority in my life and I believe everyone can benefit from regular exercise. So if the only way you can commit to a fitness regime is through a gym membership, than stick with it.

   But if you're the self-motivated type, there are all kinds of fitness activities that don't require a monthly fee: walk, run, do yoga at home, buy a fitness video, do pushups, sit-ups, use exercise bands and a pair of dumbbells

10. Monetize your hobbies.

    My sister loves arts and crafts. She can't walk into the bead store without spending a few hundred dollars. She started making jewellery and now she sells it. She doesn't make a lot of extra money, but she earns enough to cover the cost of her hobby.

    Other money saving hobby ideas? As I mentioned, I'm into health and fitness. I teach an aerobics class on occasion in exchange for a free gym membership. When I was into horses, I worked a few hours a week at the barn in exchange for horseback riding lessons. I have a client who works at the golf pro shop a few hours a week in exchange for tee times.

    Use just a few of the suggestions above, and you can save hundreds of dollars a month.

Save Money: Buy for less

One saying that has stuck with me through the years: A dollar saved is worth two dollars earned.?

It simply means that after paying income tax, levys, GST etc., that out of every two dollars you earn, you are left with about one dollar to spend.

If you want to save money this year, you can go out and earn more, or you can use the six tips below to buy the things you want for less.

1. Make It Your Job

Look at what you spend over the course of a year on clothes and household items. Suppose that number is $10,000. Make it your job this year to buy whatever you are going to buy, but for half the price. If you save $5,000, that's like earning an extra $415 per month.

Two places to start that will give you fabulous tips on how to save on everything:

• About.com's Guide to Coupons and Bargains provides a wealth of information on how to kick start your savings.
• About.com's Guide to Frugal Living provides practical make-it-yourself and do-it-yourself advice that can save you bundles.

2. Ask And You Shall Receive

Call me a fool, but for years I did not know you could barter with retail stores on major purchases.

One day I went shopping with a good friend of mine, and watched her negotiate her way to lower prices on everything. It was an eye-opening experience. I realized that most of the time, all you have to do is ask.

It's the people who don't ask that pay full price.

3. Shop Flatpack and Save

Just about every piece of furniture in my house was bought from Ikea. Why pay the high price of designer furniture when you can build it yourself for half the price?

Ikea and other bulk stores like Bunnings can be a great way to find bargains on furniture items for your home. They save you money by flat packing their furniture, kitchens and other goods which means you aren't paying the hefty freight on bulky items. And as you are the person putting it together, you are cutting out another tradesperson too! Even if you are not 'allen key' minded, they offer an affordable deliver and build service which can still work out a lot cheaper than buying from a traditional furniture retailer.

4. Shop Online: Use Ebay and Gumtree

Once you've found a brand you like, check online before you buy. I've been known to try on my favorite jeans at department stores, figure out what size works, than buy them on Ebay for almost nothing. I've found $300 jeans for $20 before.

I like Ebay for smaller, lower ticket items.

For larger items, that you can pick up locally, Gumtree is great. You can find deals on washers and dryers, mattresses, furniture, lawn mowers and much, much more.

Be prepared to ask questions of the seller, and when you go visit the merchandise, don't be afraid to walk away if it's not what you want. In addition, reread tip #2 and make sure you ask them if they'll take less!

5. Patience Pays Off: Bide Your Time And Save

Create a watch list, essentially a wish list of items you want at half price. Develop a routine of checking in with the stores to see if your items are on sale.

At one point, I had my eye on a pair of chaise lounges from Domain; each week I checked their website, and by the end of the summer the chairs were half price. Patience pays off.

6. Use Age To Your Advantage: Your Life Experience Can Save You Money

Of course I know you're not a ??senior??. But heck, if it puts money in your pocket, who cares what word it is?

Don't be shy about asking for senior discounts. If you were under 18 you certainly wouldn't hesitate to ask for the student discount. Be brazen and bold about asking. Use your life experience to your advantage, and save yourself some money.

Why your mortgage broker cares about you

In the past the mortgage broker was paid when they signed you up to a loan and thats where their obligation ended. Now with the introduction of the National Consumer Credit Protection Act (NCCP) brokers are obligate to get a picture of the consumers requirements and objectives and their financial situation.

Now this has been both a good and a bad thing for brokers. Those brokers that have just focussed on signing people up ignoring the consequences have now been made to be accountable for what this loan may mean for their clients.

For those brokers who always had their clients interest at heart this hasnt resulted in much of a change. As for these brokers always delved deeper into the clients reasons for taking out the loan to determine whether this in fact is the best strategy for the client. They also looked at the worst case scenario to determine what would happens if the client was unable to meet their repayments.?

If you have applied for a loan recently you would have noticed a lot more paperwork. This is to ensure that all questions are asked to ensure that you receive the best possible advice and all scenarios are considered before you are locked into a loan that may last for 30 years.

Why mortgage insurance doesn't protect you

Many people falsely believe that Mortgage Insurance is to put in place to protect the borrower. However the opposite is true. The purpose of this insurance is solely to protect the lender.

You may or may not know that banks have 2 main criteria when assessing your borrowing capacity

Service ability- Your ability to repay the loan
Loan to Valuation Ratio (LVR) - how much you are contributing to the purchase.

The maximum loan amount that banks would prefer to lend to you is 80% of the purchase price. This is because if you fail to make the repayments they know that they can just sell the property at 80% of the market price and get all of their money back in a hurry.

Where you would like to borrow over 80% the bank considers this risky so they take out Mortgage Insurance to cover the difference between the 80% they would prefer to the lend you and the amount they actually will lend you. In the instance where they lend you 95% of the purchase price then the bank will take out insurance to cover the difference i.e. 15%.

Where you fail to keep up with your repayments and the bank sell the property and only gets 80% of the value of the property the Mortgage insurer will then pay the 15% to the bank to cover its losses.

The thing to note about mortgage insurance is that although the banks losses are covered by the mortgage insurance this doesnt mean that you as the lender get off scott free. In this instance you will still be liable to the bank to repay the 15% shortfall even though the banks losses have been covered.

The other thing to note it that although the mortgage insurance is solely in place to protect the bank guess who has to pay for it? Yep... you the customer. In some cases the mortgage insurance may be tens of thousands of dollars and this offers you absolutely no benefit whatsoever.

The real reason why mortgage brokers offer insurance

If you have visited your Mortgage Broker lately you will have noticed that they are likely to offer to assist you with your insurance when setting up your loan.

Now the cynics amongst you may just say that they are just trying to make a quick buck however?with the introduction of the Consumer Credit Protection Act (NCCP) brokers are now under an obligation to assess the borrowers ability to service the loan without undue hardship. This includes thinking about what will happen if their client get sick or loses their job and is unable to repay their loan.

To ensure that this requirement is met all brokers must now ensure that their clients have adequate insurance protection to cover them if the unforseen happens.

A good broker will offer insurance to protect the client or at least tell a borrower they should have their situation reviewed.