Best PF Practices of the Year!

By Pinyo, on December 19, 2007

Last Friday, my friend at Mrs. Micah: Finance for a Freelance Life started a writing project that asked us to share our best PF practices of the year. I thought it was an excellent way to wrap up the year, so I will add my two cents here. I wanted to refer to my old MOMA post and say, “Save 10% of your income and make it automatic,” but I am going to add a little twist.

When saving money or paying bills, it’s easiest when we do it little by little, automatically.

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ChristianPF wrote a post called “Divide and Conquer.” It said that things are a lot more manageable when you do it little by little, instead of all at once. This was one reason why I switched my car and home insurance. I used to pay annually for my home insurance, and twice a year for car insurance. It was very difficult for me to come up with $1,400 right before Christmas to pay for home insurance, and another $1,300 twice a year for my car insurance. When I switched to Liberty Mutual, things got a lot easier not only because of the lower rates, but they are now automatically deducting a small amount each month from my bank account — I don’t even notice the pain anymore.

I am also doing well saving money for retirement and my son’s college education by saving little by little, automatically. For instance, I make regular contributions directly from my paychecks to my 401k, and I have monthly automatic deduction to fund my son’s 529 college savings plan with Upromise.com.

Below are other bloggers who wrote about the best PF practices of the year:

• It’s not what you make, it’s what you keep @ Plonkee Money
• Snowflaking – A Primer @ I’ve Paid For This Twice Already…
• Charge Yourself Exorbitant Banking Fees @ Finance and Fat
  
• Think Outside the Box! @ BeingFrugal.net
• 0% Credit Card Arbitrage Strategy @ My Dollar Plan
  
• Create a Cash Cushion by Rounding @ Collecting My Cash
  
• Own Quality not Quantity @ Early Retirement Extreme
• Automate Your Finances @ Credit Withdrawal
• Manage Your Finance Together @ Gather Little By Little
  

Lastly, I would like to leave you with a little quote I made up:

“You could walk a thousand miles, but leaping the distance is all but impossible.”

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Pinyo is the brain behind Moolanomy personal finance blog and a few other web sites. If you like this article, please subscribe for free daily email updates.

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1. Best PF practices of the year! | Mrs. Micah: Finance for a Freelance Life