Creative Ways to Cut Costs

From our July 2011 Creating Confidence Newsletter.

1. 1. Go paperless

Choosing email over mail, and electronic file storage over printing, can save you money on paper, ink, postage and more. There are free online project management tools that can help you organize your documents and share them with your team members, making your business more efficient.

2. 2. Pay bills on the due date

When you pay late you incur fees, but when you pay early you’ve unnecessarily limited your cash flow. Pay on time, every time, and maximize cash.

3. 3. Tackle your receivables

Identify your slow-paying customers and get proactive. Offer an incentive to those who pay quickly. If you accept credit cards, you should shop around for the best price on payment processing. And send out invoices as soon as the product has been delivered or the service completed. Why wait?

4. 4. Hire a student instead

College students will work for less, or just for course credit, and you can hire them on a short-term or as-needed basis. Set one to work and you might just be getting a bargain.

5. 5. Review your insurance coverage

Are you still paying to insure assets that have been sold? Are you over-insuring on the ones you still have? How much might you save by increasing your deductibles?

6. 6. Don’t make seminars a group event

Instead of having several people attend a seminar, save money by designating one person to go, and then report back to the team on what they learned.

7. 7. Program your thermostat

You may have heard this before (thanks Grace!) but it works just as well in the office as it does at home. And while you’re at it, make sure everything is turned off when no one’s in the office.

8. 8. Make your advertising expense go further

Whatever your chosen method of advertising, make sure you include a coupon, special code or offer and encourage people to use it. That way you will know which marketing strategies are the most effective, and you can eliminate the ones that aren’t.

9. 9. Make the most of your office space

Consider cutting back on non-essentials and moving into a smaller office space. And if that isn’t feasible, you can rent out that extra desk to a local entrepreneur for some extra cash.

10. 10. Design and print your own business cards

Save money and make a statement. This would be a good project for that new intern.

11. 11. Compare profit margins

Calculate the gross profit for each product or service you sell. Then focus on the ones with the lowest margin and consider discontinuing them, allowing you to focus your efforts on your more profitable segments.

12. 12. Assess your inventory

Do you have old or obsolete inventory? See if it can be sold, or even re-worked into something useful.

For continuing assistance with cutting costs and growing your business, consult your Wealth Advocate at Mackey Advisors.

by: Laura Pratt

THRIFTY THURSDAYS: 15 Ways to Save while Staying Fit

1.Are you a loner or do you need the impact of a friend/team? Some of us are great at setting goals and just doing it. Others need to get a buddy to be accountable to. What is your nature? Design you system around this first.

2. Swap Workout VHS/DVDs with friends. Almost everyone has a workout tape sitting at home. Get a group of friends together to swap tapes weekly to keep your workouts interesting and your body guessing.

3. Gather a group of friends. Go to the park and play flag football, soccer, basketball, tennis or even a high energy game of freeze tag.

4. Share a Wii Fit with friends. So many people have Wii Fits now, get a group together for a weekly Wii yoga session.

5. Have a Dog? Get in shape with your favorite furry friend! They need to stay strong and fit too. Throw around the frisbee, run around the dog park or take walks in the park. If you don't have a dog ask to borrow your neighbors. They will thank you for it!

6. Learn to use your body as your strength training weights, there is no need for expensive equipment. And there are lots of video resources on youtube.

7. Walk or run your way to health. All you need is a good pair of running shoes.

8. Walk at lunch. During the winter, it is often too cold or dark to walk in the morning or evening, so go into work early and then walk at lunch when the sun is out and more palatable.

9. Buy used equipment on Craig's list, eBay, or other online merchant. Often people think they will like a certain kind of workout, but really don't.

10. Shop around for a fitness club. What is most important to you? A pool? A basketball court? A sauna? Many clubs give you 30 days free or a certain amount of free visits. Try them out in the winter. Assess you budget, if your purse strings can hold out go for it. If not, once the winter breaks go back to your walking shoes.

11. Go to the mall in bad weather. Its warm and free, but be careful of the window displays!

12. Take the stairs at work and try to make it a challenge with your co-workers. Who can take the stairs the most times in a day/week/month?

13. Ask friends if they have old workout equipment lying around you could borrow, swap, or trade for. Get fun and creative with the payoff, like I get your treadmill and in return I will cook you dinner once a week for 6 weeks.

14. Some of us need that extra boost of a personal trainer to keep us motivated. To cut down on the cost see if your personal trainer will train you and a few friends. This way you could split the cost in half or even thirds!

15. Go dancing! Its a great way to meet people, stay in shape and have fun. Check craigslist or a local event site to check out the different venues and types of dances there are in your area.

by: Gracie Mohr

Make the New Year Prosperous

Start by reviewing your 2009 income and expenses. Tools you can use include Mint.com, Quicken® or a simple spreadsheet. Go through your bank and credit card statements and categorize your sources of income and expense. Expense categories include things like mortgage, utilities, dining out, groceries, health care, beauty care, etc. Separate your expenses into needs and wants. Take a big picture look at your 2009 habits from this perspective. What do you see?

Next set your 2010 goals. Do you want to go on a summer vacation? Buy a new refrigerator? Pay for your grandchild’s private school? What is really important to you as your prioritize your money?

Prepare a budget for 2010. Start with your needs and add in your goals for 2010. If your expenses exceed your income first look for ways to eliminate unnecessary spending, like brown bagging your lunch instead of eating out. Next look for ways to reduce spending, for example, having your hair cut every six weeks instead of every four. Look at behaviors or habits that cause you to spend money. Do you consider shopping recreation? If so replace that habit with another such as a walk in the park, visit to the local library, game night with your friends.

Many people fail to build an emergency fund. We all need at least 90 days of spending stashed away in a savings or money market account for those unexpected rainy days. If you aren’t there yet, be sure your 2010 budget includes a line item for building your safety net.

Budgeting is essential to take charge of your financial life. If you budget, you are choosing what you want. You are rowing your own boat in the direction you want to go. If you failed to budget, you are leaving your goals to chance, going wherever the river will take you. You may get what you want and you may not. Empowered people budget and plan. Join the budget crew today and create the life you want.

As you plan, remember to think past 2010. A solid financial future is built by saving and increasing your net worth. Review your 401(k) or other employer plan and be sure you are participating at least a level to get the full match. If your budget allows, contribute more. Pay down your credit cards, starting with the smallest one first. Celebrate your victory (without using your credit card) and proceed to the card with the highest interest. Prepare a quarterly net worth statement and give yourself regular at a boy/girls for growing your wealth!

May prosperity be yours,

Mackey McNeill, CPA/PFS
President and CEO, Mackey Advisors

www.CultivatingProsperity.com
Mackey@CultivatingProsperity.com

More savings tips

I was asked today to contribute to a press release by the AICPA on savings tips. Here was my laundry list:

• Barter time - for example, work with your neighbor to redo his kitchen and have him work with you to plant your garden or swap baby sitting for sewing. Discover a talent you have to share and find someone that has a talent you need.
• Participate in recycling by shopping at goodwill - especially on 1/2 price day. You can get a pair of jeans for $2, and you can dress your kids for a season for $20.
• Plant a garden, either by starting plants from seeds or buying starts.
• Buy local food, in season, and can, freeze or dry it for later. Make your own food dryer with screen and the sun or buy one off Craig's list or in a resale shop. This winter your soup will be amazing.
• Invite your kids to participate in things you normally would pay for like washing the car, going out for pizza (make your own at home), doing your nails, etc. Put 1/2 the savings in your savings account and 1/2 in a fun account for the family- let the family choose where to spend the money.
• Create a social network by inviting a group of friends to a game night once a month. Make it a potluck. You will have more fun than going out to dinner and save money too.
• Eliminate the lawn fertilizer/pesticide service. Not only will your kids and pets be safer, your lawn will come alive again, and you'll contribute to improving the ground water (and the drinking water) in your area.

May prosperity be yours,

Mackey McNeill, CPA/PFS

President and CEO

Mackey Advisors

www.CultivatingProsperity.com

Are you saving enough?

The solution to learning to save it to set yourself up for success. Start small, and make it fun. I discussed these ideas recently in an interview with Andrea Coombes of MarketWatch.

Scroll about ½ way down the page.

click here to read the story and watch the video

Mackey McNeill, CPA, PFS, IAR
CEO/President

Mackey Advisors
525 West Fifth Street
Suite 318
Covington, KY 41011
P 859-331-7755
F 859-331-4695
CultivatingProsperity.com

Saving unnecessary fees

A few days ago I received an inquiry from a national reporter. What are 5-10 "hidden" fees (service fees, for example) that the average consumer probably does not know he or she is paying? Are the fees necessary, or can consumers get out of paying them? These could include fees for unnecessary services tacked onto an insurance policy, bill, credit card, checking account, etc., that consumers should be able to opt out of.

Here are my “cliff notes:”

• Credit card – annual fee- get a free one instead – or pay an annual fee if you get benefits
• ATM charges… GRRRR! Maddening – shop around, some banks offer accounts w free ATM anywhere – or plan ahead and use your own bank
• Bank charges for withdrawal w/o a check – say you go in the bank and just make a withdrawal and don’t have a check on you
• Insurance – charge for towing expense – if you have AAA it is already covered on AAA
• Fee for a savings account – some banks charge a monthly fee for the account if it is small – shop around, use a credit union, or local bank – or just save your cash until you get enough to put in
• Check card fees… GRRR! Again – use cash instead – budgeting is easier w cash anyway
• Over limit fees on credit cards – watch your limit carefully so you don’t exceed it, even by a $1 – if you do, the fees can escalate quickly and compound
• Insurance – is your deductible high enough- $250? Can you afford $500 – if not yet, make a plan to save $500 and then raise your deductible – you can save your deductible sometimes in as little as 3 to 5 years
• Insurance- shop around – price your policy – while also being careful to deal with a AAA rated company – often you can save hundreds by shopping
• Overdraft – obvious – balance your account – and be careful
• Renting a car – insurance on the rental – get a free credit card that offers this coverage so you don’t have to pay for it when you rent
  
  May prosperity be yours,
  
  
  Mackey McNeill, CPA, PFS, IAR
  CEO/President
  
  Mackey Advisors
  525 West Fifth Street
  Suite 318
  Covington, KY 41011
  P 859-331-7755
  F 859-331-4695
  CultivatingProsperity.com