SAVE MONEY HELPER

Make saving money a family practice

2011-11-18T06:25:00.001-08:00

One of your children doesn’t understand the importance of saving or gets upset when their older sibling gets more allowance and the other doesn’t agree with you that they need a summer job. Sound familiar?
Financial irresponsibility at a young age can lead to a number of personal or family issues down the road.
That’s why it’s important to make saving a consistent priority with all family members, no matter their age. It will make a positive impact on spending habits later in life.

An important lesson to teach is that saving can be fun and rewarding. When children learn how to be financially responsible at a young age, they are more likely to grow up being less dependent on others for money. Children can learn a great deal if parents provide insights on budgeting. So you may be wondering where to start.

There are a number of simple ways to get your family on the right track toward saving including:

Have everyone contribute: It’s one thing to tell your family that saving is important and another to actually do it. The best way to reinforce habits of saving is to involve the entire family so that everyone receives a reward for their efforts. A great way to have the entire family participate is to start a family vacation fund. Obviously, the kids won’t contribute as much as the parents but having everyone work toward the same goal and having everyone reap the benefits is a great way to reinforce the behavior of saving.

Openly discussing ways to save money: When your family is grocery shopping, planning a vacation or going out for dinner, talk about what you’re doing to save money. At the grocery store, it might be taking advantage of coupons or buying a generic brand instead of name brand. When out for dinner, discuss how choosing chicken instead of steak can make a big difference when the bill comes. When planning a vacation, make it a point for everyone to know that you’re traveling during the off-season or that you’re staying with family or friends instead of a hotel to reduce expenses.

Teach wants versus needs: Even as adults, sometimes it’s difficult to determine wants from needs. However, it’s important the whole family knows the difference. For example, mom or dad may need a car or truck to get to work every day or the oldest child might need glasses in order to see.

Enforce the habit of saving first: Whether it’s the parent receiving a paycheck, or a child receiving an allowance, it’s important to verbalize the importance of putting a portion of it into savings. Getting in the habit of “paying yourself first” at an early age can have long-term benefits.

Involve the whole family in creating a budget: Write down what your monthly budget is for food, housing, transportation, reoccurring bills and non-essentials. To keep everyone accountable and to stay on track with expenses and savings goals, post your budget where everyone can view it. While developing a budget or getting one back on track may take some time, it will be time well spent when you’re able to meet your financial goals.

Helping each other get into the habit of saving can lead to lessons that last a lifetime. Remember that it’s important to save money no matter what stage of life you’re in.

While you’re working to set up your family savings plan, speak with your local banker and communicate your goals with them. They can offer you and your family advice and suggestions when it comes to household savings. Let the savings begin!

Source

6 Common Excuses for Not Saving Money

2011-11-04T06:27:00.000-07:00

Have you ever settled on a new exercise program, only to get a bad cold a few days in and happily throw yourself on the couch, relieved to have a handy excuse? Excuses must be human nature; I know I usually make them when I'm facing something that’s new, that's hard, or that I just don’t enjoy. And I’ve certainly made excuses when it comes to money. In the years that I’ve been writing about personal finance and investing, I’ve also heard my fair share of excuses, mostly from readers who don’t agree with my advice. The problem is, unlike good financial habits, excuses are easy to come by, even though most of them just don’t stand up to reason. Check out some of the ones I’ve heard most frequently so far.

Excuse: “I don’t make enough to save money.”

This may be true for some people, especially in this economy, but not having any money left at the end of the month doesn’t necessarily mean you can’t afford to save. After all, most people spend money on a number of unnecessary things each month, such as restaurant meals, impulse buys, and cable TV. Finding some money for saving doesn’t have to mean voluntarily living in a dark, unheated room without any entertainment or luxuries, but if you’ve declared your budget too tight to put money aside before even looking for ways to reduce your spending, you’re making an excuse.
Excuse: “Interest rates are too low to bother with.”

Interest rates are at an all-time low right now, and that does make putting money into a savings account a little, well, disheartening. However, it’s likely that many of our grandparents — and certainly our great-grandparents — may have gone years without using a bank at all. Now that banks provide a safe place to park your cash, they pay interest in return for holding your money. Interest is a great way to grow your savings, but even if you get almost nothing, at least you have some cash when you need it. Plus, if you’re able to put enough away, you can always look into investments with the potential for higher returns, such as stocks and mutual funds.

Excuse: “I have too much debt to put money into savings.”

If you have a lot of debt, it’s important to focus some serious effort into getting rid of it. But that doesn't mean that every bit of money you can spare should go straight to your creditors. In fact, it’s more important than ever to save when you’re in debt because it can help you avoid digging yourself in deeper. If you don't at least have a small emergency fund, you'll be forced to pull out your credit card when unexpected expenses — such as a car repair — inevitably arise.

Excuse: “I’ll catch up later when my salary is higher.”

In my experience, quite a number of people actually follow through on devoting money to savings when their salary increases. The problem is, if you wait too long, the time value of money can make it impossible to catch up. Consider this — if you start putting $1,000 a year into a mutual fund with a 15% average return when you’re 25 years old, you will have more than $340,000 in the bank when you turn 55. Start 10 years later, and you’ll have to save three times as much per year to even come close to $340,000 — and you’ll still fall short by about $25,000. The bottom line is that if you start saving earlier, you won't have to work nearly as hard as if you put it off.

Excuse: “I won’t be able to save enough to make a difference."

This is one excuse that often comes up when saving for retirement. With many experts citing figures like a $1 million retirement fund, it’s easy to be discouraged. What many people forget, however, is that even a little bit of extra money can make a difference in your standard of living during retirement. If you retire today, you’ll get about $1,100 per month from Social Security. Depending on where you live, that’ll probably allow you to get by, but you won’t be taking any holiday cruises. But what if you were able to save $100,000 for retirement? It’s a small sum compared to $1 million, but it could mean an extra $500 per month in income during retirement. That’s enough to make life a lot more comfortable. The best part is, it only takes savings of about $1,000 per year, or $83 per month (assuming you save for 35 years at 5% interest) to arrive at that sum.

There’s an old proverb that says that if you don’t want to do something, one excuse is as good as another. When it comes to making changes to how we handle our money, most excuses arise from a desire to avoid rocking the boat, even when a financial shakeup is often just what we need. Excuses, therefore, act as a mental escape route, allowing us to avoid tackling our finances, rather than facing them head on. And there’s no good excuse for that.

Source

Summer Deals that Won’t Hurt your Wallet

2011-06-30T09:54:00.000-07:00

Even when working on a budget, it’s still nice to go out out for a bite to eat every once in a while. Unfortunately eating out can cost big bucks and can put your date night plans on hold. Thanks to the summer season, though, date night may not come to a close forever!

Restaurants from all over the county are offering unbeatable deals for any time of day. Many are even offering discounts on happy hour and appetizer combos too, just be sure there is an official designated driver before hitting the town!

To find deals at a bar or restaurant near you, go to: pbpulse.com

Once there you can enter your zip code and the type of cuisine you’re craving.

If going out to dinner may not impress you, how about having date night during the day and visiting the local museum. Currently happening at the Norton Museum of Art are several exhibitions that are sure to please everyone.

Now until September 4 is an exhibition featuring costumes from movie and TV, including films such as Star Trek and Batman.
For history buffs, there is the Eternal China exhibit. This exhibit features art and findings from the ancient days of China and famous tombs. This exhibit is will be at the museum until July 17.
And for those who revere photography, there is an A to Z photography exhibit occurring now until October 16.

To get more information on the exhibits and other services the museum offers, such as Art after Dark, visit: The Norton Museum of Art webpage

If being outdoors pleases you more, then how about going the one thing Florida is most famous for…the beach! At Lantana Beach you can either bring your own cooler or walk a few feet and pick up lunch at the Dune Deck Café. There they offer everything from salads to subs, burgers and more. Or if you’d like to bring your pooch along, you can visit Juno Beach, which is pet friendly. Or if you’d rather walk around than lay in the sun, try visiting Lake Worth Beach and its famous pier.

No matter which beach you visit you’re guaranteed to have fun in the sun and you’ll only need some quarters for parking, maybe some cash for lunch and a lot of sunscreen.

Sources:
The Palm Beach Post
The Norton Museum of Art website
Dune Deck Cafe website

Planning Holiday Spending

2011-06-24T09:49:00.000-07:00

By: Nancy Kvamme

Time to get your Christmas shopping lists ready. I know summer is just starting but it is also time to get a jump start on your Christmas shopping. I was at a store the other day and they were putting out Christmas decorations already. We also got a Christmas card catalog at our office last week.

Sit down the make a list of everyone you are planning on purchasing Christmas gifts for, along with a budgeted amount for each and any ideas you may have already. Add up the amounts you have budgeted, by doing this you will have an idea of the total amount you are planning on spending. Then make a list of extra expenses you may have, such as holiday parties, extra dining out, wrapping supplies and other additional expenses.
By determining your extra holiday expenses now, you will be able to spread it out over the next few months instead of possibly putting a majority of the expenses on credit cards and paying them off. If you put the expenses on credit cards and not pay them off right away, you will have the additional interest and finance charges.
If you are able to budget for the extra expenses now, you will be less stressed around the holidays and will be able to enjoy them more.

Via http://www.divinecaroline.com/22306/115509-planning-holiday-spending#ixzz1QDEpRMpT

The Power your House is Using and What it’s Costing

2011-05-26T10:12:00.000-07:00

You may look at your electric bill and wonder why your cost isn’t going down even though everything in your home is off. That’s because it only seems like everything is powered off. There are many everyday household items that may be off, but when they are plugged in they’re using almost the same amount of energy as if they were in use. In addition, the summer months are the worst because so many things are kept on that usually wouldn’t be used. The air conditioning may be kept on all day to keep the house cool and kids are home on vacation and watching TV and playing video games. So what can you do to lower your bill?

The Search for the Highest Energy User
First, find out which appliances are kept plugged in all day. You can either do this yourself or sign up for a power audit with your electric company. Basically, the technician will come and read your meter, then take a look around your home. They will be looking for what is always plugged in and tell you how much energy it is using and how much that’s costing you a month. The most common offenders are cell phone chargers, coffee makers, HDTVs and video game consoles. Together these add up to almost 60 watts of power being used, and that’s with these electronics in the “off” mode!

In addition, ask yourself if you have double of any appliances and if they are older than ten years old. This is most common with refrigerators. Many families have an extra fridge for soft drinks and snacks, but this could be hindering instead of helping. Keep in mind that most refrigerators over ten years old were made before energy efficiency was a requirement or even a thought.

The Effect your Electronics are Having
Since many electric companies use fossil fuels to power their plants, the more electricity consumers use the more greenhouse gasses are released into the air. And as most people know, greenhouse gasses are accused of causing ozone depletion which can lead to many changes in the earth’s atmosphere and weather.

What Does this Mean?
Electronics and appliances that are unnecessarily plugged in and using power can cost up to $200 a year! However, making a few simple changes can help lower your bill and your carbon footprint. Ask yourself if you need the spare fridge. Most refrigerators work more efficiently when they are fuller, so unless the extra fridge is completely necessary, consider dumping it. Also, unplug cell phone chargers and the coffee maker during the day. You can plug them in once you get home or before bed and this will save energy and money. Also, try switching out your incandescent light bulb with a CFL. Though CFLs may cost more at the register, they use 75 percent less energy and can save you $40 or more during their lifetime!

To learn more about energy efficient appliances check out the Energy Star website and to calculate your carbon footprint click here.

Sources:
Energy Star
Science Daily
wptv.com-News Channel 5

Check out these Cheap Foods and Easy Recipes!

2011-05-25T11:09:00.000-07:00

With prices on gas and groceries rising, here are some foods that are easy on the wallet and the eye. And to make things even less complicated, try these simple recipes to go along with them.

Non-fat, plain Greek yogurt: Greek yogurt seems to be all the craze lately but for good reasons. This product has a smoother, richer consistency than regular yogurt and can have up to twice the amount of protein. In addition, Greek yogurt is easier to digest because of its low amount of carbs which makes it a great option for those who are sensitive to lactose or are diabetic. Try pairing this creamy treat with some fruit and you’ll get something similar to this recipe.

Baked Nectarines with Greek Yogurt

Whole Grain Pasta: Just like its well-known and regular brother, whole grain pasta is cheap and fast. Instead of just pairing it with pasta sauce, try using this recipe to jazz up your weeknight dinner without too much extra effort.

Whole Grain Rotini with Cherry Tomatoes and Basil

Bananas: Bananas are a delicious fruit filled with essential nutrients and are also easy to eat on the go. This tropical, yellow fruit has ten percent of the recommended dose of potassium, 16 percent of the recommended value of fiber and 20 percent of the recommended value of vitamin of B6, which helps maintain a healthy immune system. Try this recipe, however, if you’re trying to impress a date and get your sweet tooth fix.

Chocolate-Banana Filled Crepes
*if you don’t want to try your hand a homemade crepes, most supermarkets now sell pre-made crepes that you could just heat up

Brown Rice: Brown rice seems to be an underutilized ingredient in the kitchen. It’s known for being dry and sometimes tasteless, but just like other simple foods, it only needs a few ingredients to make it shine. In addition, this food is packed with fiber, protein, calcium and lots of other healthy essentials. Try the recipe below and it’s almost guaranteed that you’ll be hooked!

Brown Rice Salad with Citrus Vinaigrette

Eggs: Eggs are always an easy fix, whether in a brownie or scrambled, eggs are used in a variety of ways, and for good reason. Eggs contain protein, Vitamin D, which helps absorb calcium, and they also contain selenium, which can help prevent blood clots. In the recipe below, try eggs as an appetizer in another popular way. Boiled.

Warm Spinach Salad with Eggs

Hope these ingredients and recipes help when you’re in a bind or just want to try something new and full of flavor. Enjoy!

Sources:
HealthOnlineZine
MyHealthyFoods
Tao of Good Health
LiveStrong.com
News Channel 5-wptv.com
Food Network

Don’t Let Gas Prices Ruin your Travel Plans

2011-05-24T14:48:00.000-07:00

With summer being the time for road trips and vacations, you may be thinking to yourself how is it even going to be possible with gas prices climbing to or already at four dollars a gallon? Well here are a few ideas to get you started without breaking your budget.

Apps are your friend- Try using gas apps to find the cheapest gas near you. These apps use GPS from your current location or you can enter your zip code to find the nearest stations with the cheapest prices near you. If you don’t have a smart phone you can still utilize tools like this one. There are many sites online, such as GasBuddy.com, that allow you to search for your city or use your zip code to find the cheapest gas. Along with finding gas stations near you, this site will actually reward you for posting gas prices. If you join the site and post prices, you could win prizes weekly, such as free gas!

Check the traffic- Again, by using apps or checking the web, you can see if there is traffic on the route you plan on taking. By checking the traffic beforehand you can plan an alternative route and keep your car going and waste less gas and energy.

Research your hotel- Before packing your bags, research the hotel you will be staying at. Is it near the restaurants you plan to be eating at or the tourist attractions you will be visiting? Also, see if your hotel will be offering any rewards. Many hotels are offering a free night after several stays and some are even offering gas gift cards to their customers.

Try an alternative- Instead of taking your car maybe try and alternative to a road trip. Consider taking a train or bus to your destination. You’ll still be able to see all the sights that you would on a road trip, but this alternative can be cheaper and unlike airlines, there probably won’t be any extra fees for heavier luggage.

Try to pack light- The more that your car is weighed down the more gas it is going to use. In fact, according to the Environmental Protection Agency, “an extra 100 pounds in your vehicle could reduce your mileage by up to 2 percent.” Many people strap their luggage to the roof but this makes the vehicle less aerodynamic, which can also affect how your car uses gas.

Skip the toll booth- By purchasing a Sunpass or E-Z Pass, there will no longer be a need to stand in line or stop your car to get a ticket from the toll booth. And getting one of these passes is easier than ever because now there are mini versions that you can buy. For example, the Sunpass mini is only $4.99 and you only need a minimum balance of $10 and even get $4.99 in toll credits after you register.

Watch your speed- Once you start driving over 60 m.p.h. your car’s gas mileage starts to decrease. This means that you start paying more for gas, or as the EPA website says, “You can assume that each 5 m.p.h. you drive over 60 m.p.h. is like paying an additional $0.24 per gallon for gas.”

For more tips check out the EPA website and the New York Times.

Sources:
The New York Times
GasBuddy.com
Sunpass.com

Battle of the Superstore Giants: Who is Cheaper?

2011-05-23T17:27:00.000-07:00

Wal-mart, which is notorious for advertising that it always has the cheapest prices, may actually be pushed out by another one-stop shopping center…Target. However, many customers stated that they felt that Wal-mart consistently had lower prices, but according to reports by CNN, that may no longer be true. So to find out the truth, John Matarese, the notorious money-saving reporter, researched and asked the question “who actually has the lowest prices?”

Matarese had a list of 15 items, ranging from food to entertainment, and headed to a Wal-mart and a Target that were just 3,000 feet apart. During his shopping trip, the reporter found that Wal-mart was usually cheaper, but only by a cent or two.

For example, a Target brand gallon of milk was $2.59 versus the Wal-mart brand, which was only a penny cheaper at $2.58. Another household essential that was on the list was laundry detergent. At Target a large box of Tide detergent was $17.99 and a Wal-mart, the same item was $17.97.

When it came to clothing, Matarese asked several female customers which was their go-to store and they stated that they would choose Target for more fashionable finds, but would head to Wal-mart for the basic necessities for cheap.

Though it seems that Wal-mart may have won, the reporter found that Target makes bigger price cuts and that their entertainment department had the items he was looking for without putting a hole in his wallet. For example, the popular movie The King’s Speech was only $10 at Target, but at Wal-mart, the same movie was almost double the price at $19.96 (both were DVD prices). Another movie, The Green Hornet, was also cheaper at Target, by a dollar.

In the end Target won with the grand total coming to a little over $123, while Wal-mart was almost ten dollars more coming in at $132. However, when the movies were taken out of the equation, the Wal-mart total was $94 and the Target total was $96.

Also, upon hearing about Target’s cheap prices, Wal-mart released a statement saying that they are “committed to offering our customers low prices. If customers find a lower advertised price, we'll match it every time." On the other hand, Target offers its Redcard holders five percent off on select items.

Overall, according to CNN, “if you are just buying groceries, Walmart still offers a bigger selection at a lower price in most cases. But on movies, books, music, and other items Target can be cheaper.”

Source:
News Channel 5

For Me, For You, For Later

2011-05-20T11:27:00.000-07:00

"For Me, For You, For Later": Sesame Street Teaches Financial Education

For over 40 years, Sesame Street has taught children many important skills such how to count, spell, and say “please” and “thank you”. Now Elmo and his friends are embarking are a new effort to teach young children a subject that gets little attention in the pre-kindergarten community: financial literacy.

Sesame Street’s “For Me, For You, For Later: First Steps to Spending, Sharing, and Saving” Kit was developed by Sesame Workshop and funded by PNC Grow Up Great, a 10 year $100 million effort of PNC bank to help young children prepare for school and life. The media kit teaches children how to make choices, understand the value of one good compared to another, decide when to save versus spend, and share with those less fortunate.

In one segment meant to teach children how to save their money for something in the long-term, Elmo decides not to spend the dollar he has on ice cream and instead save $5 so that he can buy a “stupendous ball”. In a segment on the value of one good versus another, Elmo has to decide between buying two apples or one mango for the same price.

In addition to a DVD, the media kit contains a parent/caregiver guidebook, three jar labels that say “spending”, “sharing”, and “saving”, and play money. The entire media kits are available free of charge in English and Spanish at local PNC Banks. The videos are also viewable on Sesame Street’s website, where the printable caregiver guidebook, jar labels, and play money are also available for download. The website contains an educators’ page as well.

For a more detailed review of Sesame Street’s new financial education kit, read the New York Times article.

Credit Card Management Services, Inc. d.b.a. Debthelper.com is an IRS Approved 501c3 Non-Profit Florida Corporation dedicated to our mission of providing compassionate and professional, financial counseling and education in an ethical manner with efficient, timely and problem-solving client support. Debthelper.com partners with those who create opportunities for people to live in affordable homes, improve their lives and strengthen their communities. 800-920-2262

Couponing 101: How to Pay Almost Nothing for Your Groceries

2011-05-19T10:13:00.000-07:00

Everyone who loves to save money knows that coupons are the way to go, but if you’re new to couponing it can get confusing or overwhelming. Once you get the hang of it though, you’ll soon find that it’s completely worth it! On the new TLC show “Extreme Couponing,” regular people show viewers that couponing may take some time, but can save you hundreds. In a recent episode, one woman got $625 worth of groceries for $2.87! And another woman purchased $146 worth of groceries for ONE cent!

So if you want savings like these then follow these tips to keep more money in your wallet and less at the grocery store check-out.

1. Look everywhere- These days newspaper inserts aren’t the only way to obtain coupons. Just entering coupons in a search engine or visiting the company website may lead to printable coupons you may not know about. Beware for scam sites though. These sites may ask you for personal information or to pay ridiculous amounts of money for coupons before getting them, and paying for savings doesn’t make sense.

2. Ask for help- Ask your friends and coworkers for the inserts from their Sunday papers. This way if you can get their coupons if they don’t use them or check out the sales for the week.

3. Organize and save- Organizing your coupons makes all the difference once you reach the register. Some people like to store their coupons in a binder or like to file them in small plastic drawers. Another good idea is to file coupons by expiration date or by the aisle the item is located in. And remember to save, save, save! Most people find coupons that expire months from now and intend to use it on their next trip but never do. Even if the expiration date seems far, that coupon may come in handy down the road.

4. Research- Couponing does take a lot of research. From looking up when items are on sale to best utilize your coupons and extend your savings, to finding out your stores coupon policy, always research! Another good research tip is to find out when the store restocks its shelves. Is it at the beginning or end of the week? Knowing this will allow you to have the best picks of the items you’re looking for.

5. Watch the date- This tip is super important! Not only should you watch the date of your coupons, watch the expiration date of your food. Many couponers buy frozen and canned foods, but if the expiration date passes before you’re able to eat these items that is money and coupons wasted.

Hope these tips help and if you want more just check out the Extreme Couponing website. There you’ll find more tips and get the scoop on things such as the “Top 10 Marked-up Items.” And if you have any couponing advice share it here so other can save too!

Source:
TLC's Extreme Couponing

Claim Your Missing Money Now - Before States Do

2011-05-19T07:46:00.000-07:00

If you or a family member are entitled to receive missing money or an unclaimed asset being held by a state -– anything from unused gift cards to life insurance proceeds -– you might want to stake a claim to those funds sooner rather than later.

Otherwise, you could end up missing out on cash and assets that are increasingly being eyed by cash-strapped states across the country.

Currently, state treasurers and other agencies are holding an estimated nearly $50 billion worth of unclaimed funds that belong to millions of consumers. These assets range from uncashed payroll checks and utility deposits to dividends and forgotten bank accounts.

The biggest chunks of money usually come from long-lost insurance policies. But people have also reaped huge windfalls from years-old military benefits or sizable assets discovered in safe deposit boxes.

"A disproportionate share of people have lost track of these assets in times of personal crisis, such as a death in the family, a flood or tornado, or some other disaster," says Mark Tofal, an expert in tracking down missing money who operates the website UnclaimedAssets.com.

Individuals owed unclaimed money all share one common trait: They can't be located by banks, retailers and other businesses that are holders of property. Sometimes, tracking a person down is difficult because the individual has gotten married or divorced and changed names. In other cases, people have moved and their current address isn't known.

Once assets go dormant for a period of time -– typically anywhere from two to five years -– these unclaimed assets are deemed "lost" or "abandoned," and they're turned over by companies to state agencies.

Even though states work to re-connect lost property with owners, their efforts often amount to little more than creating a website, mailing postcards to residents, or publishing newspaper notices listing the names of people owed missing funds.

Besides, taking custody of forgotten money and unclaimed property can provide an enormous financial boon for states. With billions in unclaimed assets in their coffers, states can and do collect interest, use the money to finance operations and fill budget gaps, and even sell or auction off assets to raise much-needed cash.

"Many states are experiencing significant budgetary challenges. Therefore, it's not surprising that they're looking for additional revenue sources, and it's likely that unclaimed property will be explored as a possible way to increase revenue," says Christa DeOliveira, a senior consultant with Ryan LLC, a tax firm that offers consulting services for entities dealing with abandoned and unclaimed property.

How to Claim Missing Money

To claiming missing money -- or prevent funds from going uncollected -- follow these three tips:

1. Use the Internet. To find unclaimed property, state officials suggest that consumers first visit MissingMoney.com, the site sanctioned by the National Association of Unclaimed Property Administrators (NAUPA), which represents state treasurers.

But not all states are listed on MissingMoney.com. For example, assets from New York and California – which together hold more than $15 billion in unclaimed assets - aren't in MissingMoney.com's database. Therefore, you should also try other search options. To find links to state databases in one location, visit Unclaimed.org, the free site for NAUPA. Search variations or misspellings of your name, and search for relatives' names, too.

For a flat fee of $18, you can also use a paid site like UnclaimedAssets.com, which will hunt down funds on your behalf. But consumers should generally avoid paying expensive "finder's fees" to tracers who offer to locate missing money for you in exchange for a fee of anywhere from 10% to 50% of what they find. Some property tracers are con artists.

2. Get your documents in order. To claim money or assets that are held in your own name, you'll have to prove who you are with photo identification, a Social Security number, and/or proof of address.

If you're claiming money as an heir or beneficiary of someone deceased, you'll have to provide a death certificate, and sometimes letters of administration or letters testamentary indicating that you're the executor of an estate. Local public records offices and sites like Ancestry.com can also help if you need to establish proof of lineage.

3. Communicate with relatives. To prevent money and assets from going unclaimed, keep track of your accounts, deposits and financial information. Let family members and beneficiaries know about your financial assets and specifically where your insurance policies can be found in the event of your death.

Insurance industry experts estimate that as many as 33% of all insurance policy proceeds are never paid. This often happens if family members don't know about the insurance policies, if insurance companies aren't notified about deaths, and because insurers lack the resources to track down beneficiaries.

Changing Laws On Abandoned Property

According to the National Association of Unclaimed Property Administrators, as of June 2006, state agencies held about $33 billion in unclaimed funds. Moreover, in 2006 alone, states collected nearly $5 billion in unclaimed property and paid out just $1.75 billion that year -– about 5% of the total monies held.

Emails to NAUPA seeking comment for this story and more recent data were not returned.

Other sources interviewed indicated that the value of unclaimed property turned over to states in recent years has been growing, not shrinking.

Therefore, even if the $5 billion collected in 2006 held constant for the years 2007 through 2010, state agencies likely added another $20 billion or so to their unclaimed property totals –- bringing the estimated total of unclaimed property to about $53 billion. If roughly $2 billion was paid out annually, as the NAUPA website indicates, states would still be sitting on approximately $45 billion in unclaimed funds.

The good news for consumers is that when the rightful owners of property -– or their beneficiaries or descendants -– finally come forward to collect, states do generally pay out what's owed. Historically, there's been no statute of limitations for property owners or their heirs to collect what's held in state custody.

But even that's changing, as two states now impose time limits on consumers to step forward and claim abandoned assets. In Idaho, any property turned over to the state that's not claimed by owners or their heirs within 10 years becomes the permanent property of the state.

And in Indiana, there's a 25-year statute of limitation to claim property once it's been reported to the state. The exception is court funds, which must be claimed within five years after being turned over to the state.

"I predicts that more states will start to impose statute of limitations," says Tofal. And even if his prediction doesn't pan out, states are clearly increasingly relying on unclaimed funds as a funding source.

Moreover, new legislation nationwide shows that states are:

Reducing dormancy periods
Broadening the scope of assets covered under unclaimed property laws
Auditing businesses more aggressively to ensure compliance with unclaimed property laws
Imposing interest charges or increasing civil penalties for those not in compliance; and
Securitizing unclaimed assets and borrowing against abandoned property

Kendall Houghton is a senior attorney at Alston & Bird LLP in Washington D.C., which advises companies on unclaimed property compliance issues and audit defense. According to Houghton, "The reasons cited for this heightened level of attention to unclaimed property probably depend on the perspective of the person with whom you speak."

Houghton notes that companies often feel that states' increased focus on unclaimed property laws is motivated by the need to generate additional revenues, or to accelerate the receipt of cash that would otherwise be paid over to the states after longer dormancy periods.

Meanwhile, states assert that the laws are designed as consumer protection vehicles, and, according to Houghton, "they appear to feel that many businesses are not in compliance, or worse, are cognizant of but actively disregarding the unclaimed property laws.

"However, it bears noting that some of the largest audit assessments issued by states relate to property that can never be returned to its owner, and therefore there can be no consumer protection purpose," Houghton adds. "Into this category falls all property that's being claimed based on statistical sampling or for which there is no owner address record, such as most gift cards."

Gift Cards – a Gift to Individuals or States?

Speaking of gift cards, these little pieces of plastic have lately become among the more hotly-contested forms of unclaimed property.

New Jersey offers a case of point in the fight over gift cards -– and is illustrative of the general push by states to more aggressively get companies, ranging from insurance firms to retailers, to more quickly relinquish abandoned property to state control.

In June 2010, New Jersey Gov. Chris Christie amended state laws regarding dormancy periods for unclaimed assets. The net effect of the changes would put dormant funds and unclaimed assets into state coffers more quickly.

For example, the state decreased the dormancy period for money orders to three years from seven, requiring companies to turn over unclaimed money orders faster to state officials. Likewise, New Jersey cut the dormancy period for traveler's checks to three years from 15 years. Also, after previously having no legislation concerning gift cards, the state created a two-year dormancy period for gift cards.

The $90 billion-a-year gift card industry is big business -– and gift cards offer a huge potential revenue source for states. TowerGroup calculates that consumers failed to cash in $2.5 billion worth of gift cards in 2010. Other experts say as much as $6 billion to $8 billion in gift cards go unused annually.

The Christie administration estimated that New Jersey would reap as much as $80 million by seizing unused balances on gift cards, as well as retroactively seizing unclaimed travelers checks dating back as far as 1994. In November 2010, however, a federal judge issued a temporary injunction against the state, halting New Jersey's plans regarding gift cards. The legal wrangling over the issue is ongoing.

And it's not just gift cards being squabbled over either. Unclaimed insurance proceeds are also up for grabs.

Numerous states are believed to be auditing life insurance companies to make certain that insurers work harder to find beneficiaries after a policyholder has passed away, or to turn over to state authorities uncollected death benefits in accordance with unclaimed property laws.

California, for instance, recently settled with John Hancock over life insurance premiums that hadn't been paid to beneficiaries of policyholders.

For its part, New Jersey, too has recently entered into a settlement with a big insurer – though it won't yet say which one. Bill Quinn, a spokesman for the state of New Jersey, confirms that "New Jersey recently signed a settlement agreement with a major life insurance company that deals with unclaimed property." However, he adds, "until all the details of that settlement have worked out, Treasury will have no comment on this issue."

New Jersey now holds $3 billion in unclaimed assets, according to Quinn. In the past three years, the Garden State has had approximately $255 million turned over to it annually by companies that were holding abandoned property. During the same time period, the state returned about $83 million annually to property owners, Quinn adds.

Raising Revenues Without Raising Taxes

New Jersey isn't alone in going after holders of unclaimed property to make sure those funds make their way into state custody after a designated period of time.

The state of Delaware is also known to aggressively audit businesses to ensure compliance with unclaimed and abandoned property laws. According to the Delaware Economic and Financial Advisory Council, Delaware is expected to generate $380 million in 2011 from abandoned property. In 2010, that figure was $400 million and in 2009, the tally was $392 million.

Thus, unclaimed property brings in more than 12% of Delaware's revenues and is the state's third-largest funding source, ranking only behind monies the state takes in from personal income tax and incorporation revenue.

"Unclaimed property is a non-tax source of revenue, so there's not the same stigma associated with increasing collections of unclaimed property as there is associated with raising taxes," notes tax firm's Ryan's DeOliveira, who is based in Sandy, Utah.

In other words, seizing unclaimed money as a way to boost state funding is more palatable –- and less likely to raise the ire of voters -– than is slapping residents with yet another tax hike.

Still, more should be done to put unclaimed property into the hands of its proper owners.

When insurers hold onto money that should rightfully be paid out to beneficiaries, that artificially strengthens their balance sheets. When states hang on to these assets, they get to use the money interest-free, borrow against it or spend the funds on public purposes.

Either way, the money isn't serving its intended purpose: to directly benefit the original property owners and their heirs. Should those dollars be swiftly returned to the rightful owners, it would provide a much-needed financial boost to millions of individuals and families.

And that would be a $50 billion stimulus plan all Americans could support
Source

FAKE Acai Berry Weight Loss = Really?

2011-05-11T09:02:00.000-07:00

It's about time...

The FTC has asked federal courts to stop
the allegedly deceptive tactics of
10 internet marketers that used fake news
websites to sell acai berry weight-loss products.

Using the logos of national media companies
and testimonials from supposedly satisfied customers,
the defendants' web pages used false and unsupported
claims to pitch their products. The FTC alleged
that virtually everything about these sites was fake:

FAKE weight loss results
FAKE "investigations"
FAKE reporter
FAKE testimonials
FAKE pretense of objectivity

http://http://www.ftc.gov/opa/2011/04/fakenews.shtm

Don't waste your money.

www.Debthelper.com 1-800-920-2262

Frugal Families: Give Mom a Mother's Day Gift She'll Actually Enjoy

2011-05-06T05:36:00.000-07:00

Let's face it. Mom doesn't need another "World's Best Mom" shirt or pair of leather gloves. Here's a few tips, straight from the source - local moms!

Hey Dads and Kids! Are you having trouble coming up with Mother’s Day gift ideas?

Patch asked some local mom’s about the best Mother’s Day gifts they’ve received over the years or what they think makes a great gift and some may surprise you.

#1. Gardening Gifts
Mother’s Day is usually prime planting time in the spring, what better gift than to give mom some flowers and plants to plant, plus the time to plant them.

“My favorite gift each year is money or a gift card towards flowers and plants for gardening.” St. Michael mom of three, Becky Rogalski told Patch. “Then I get the whole day on Mother’s Day to plant.”

#2. Handmade, one of a kind gifts your kids make
Don’t we all love the little creations kids come home from school with? Dad’s, let your kids make cement handprints as a stepping stone for mom or have the kids make nice cards.

I think I speak for many moms in saying there’s something about our kids projects and the way they are so secretive in the process and excited and proud to give them, that make us moms weak in the knees

#3 Handmade, one of a kind gifts you can buy
Julie Aandal, a St. Michael mom of three says, “I love etsy. There’s pretty much always something there I love.” Etsy is a world-wide website of handmade items ranging from jewelry to clothes, paper goods and home décor.

Specifically this year Julie found a unique necklace that can be personalized with her kids names that she’d really like.

“There’s also always photo book gifts like Shutterfly, which can be really fun.” Aandal says.

#4. Let the kids pick.
Your kids know you better than you think. Michelle Berglund, St. Michael mom of two, got a real surprise from her son, Carson two Mother’s Day’s ago.

“We were at a garage sale the Friday before Mother’s Day and he secretly bought me a Statue of Liberty statue, with his own money. The woman running the garage sale even wrapped it up in a gift bag for him to give to me.” Berglund shared with Patch. “I loved his innocence and excitement at finding me something he knew I would love. And I do love it!”

#5. Give mom a break.
Jill Klym, St. Michael mom of two said she’d “love if my husband hired someone to clean our windows. I’m dreading that job this spring.”

Is there a job mom would like help with that would be a nice surprise and treat? A room needing to be painted or maybe have someone else clean the house for her?

#6. Gift Cards.
What mom doesn’t like gift cards? And you’re in luck, St. Michael-Albertville have lots of options. From coffee to getting mom’s hair done. How about a spa day? A gift certificate for a manicure or pedicure would be a sure hit!

Don’t forget, CVS, Walgreens, Target, Walmart, all sell gift cards for many stores. While you’re there grab mom a garden bouquet!

Source

Debthelper Director’s Round Table Discussion (Ways to Save Money)

2011-04-29T10:00:00.000-07:00

Moderated by Andrew Bernstein, Community Education Specialist

We recently sat down with our Directors to discuss the issue of saving money. Utilizing their experience and expertise, we discovered a myriad of ideas that can reach every level of consumers; their families and students as they move through these trying times.

Q: With more and more consumers joining the ranks of the unemployed (or under-employed) what can you suggest as ongoing money savings ideas?

Mr. Curran: “What I have found is that there are many money saving coupons that consumers can obtain, especially online. These include savings for groceries, pharmacy items and goods and services directly from manufacturers. Another thing I have noticed is that folks are still going out to restaurants and the theater and that there are many offers for savings for those activities. If you go online there is a virtual smorgasbord of coupons, such as 2 for 1 deals or a percentage off meals, free or discounted tickets to the movies or museums, etc. The newspapers also have coupons to many events and services.”

Dr. Stahura: “When I talk to people these days they are becoming very diligent about saving money wherever they can. I agree with what Matt said about savings. I can also add that people need to be aware of deals for things like cable or dish TV, insurance and other services.”

Mr. Sutch: “I think that the key to real savings is creating a monthly budget. This way people can plan what they spend based on what they have. What happened in the past (and still does to an extent) is that people would just buy what they wanted, whenever they wanted, with their credit cards. As more and more consumers are looking at bankruptcy, they are learning through counseling that it is important to live within their means with a good and sensible spending plan. That way, they spend on the things they need first and then set savings goals for things that they might want in the future.”

Mr. Curran: “That is so true. Of course people have to remember to set goals that are attainable and that can be measured as they go along. A lot of people set goals but fail to follow through.”

Dr. Stahura: “I know that in my own experience, I always keep a goal card or reminder and I take a look at it every day to see where I am with it. You don’t have to have a lot of money coming in to set goals for yourself. As a side note, I was acquainted with a fellow who needed to lose 100 pounds. When he started, his goal was to ride his bike a mile a day. Even that was a struggle, but in time it got easier and he wound up a biking fanatic, doing about 20 miles a day. It took awhile, but he lost more than what his goal was. He said that one of the reasons he succeeded was that a) he weighed himself everyday and b) he rewarded himself at specific levels. I just think that that can really work with financial goals too.”

Q: How can the savings process work with couples with children or single parents?

Mr. Sutch: “I imagine there might be some people who would disagree, but my feeling is that you have to get the kids involved in the entire process as soon as possible. That means truly impressing on them the need for discipline when in public, especially when they are in the grocery store with you. This can be very difficult to enforce and certainly embarrassing sometimes, but it can be done. That’s why you are the parent(s)! As they get older and can behave appropriately, you can actively include them in the process.”

Mr. Curran: “That is true. Once they understand the routine, they can help out a lot. Remember that children like to be included. What I suggest is that when they are able to negotiate around the store, you can actually give them a list of items to get and put in their own cart. This way they are learning more and shopping doesn’t have to be a struggle with the kids. It’s also a great way to save money, because they won’t be grabbing things off the shelves and nagging their parents about what to get.”

Dr. Stahura: “Another idea would be to include the kids in preparing the grocery list. From cutting coupons, going through the store circular and comparison shopping, this can lead to saving a good chunk of money. This can be expanded to having them plan some of the meals too. It’s always best to start teaching them at a young age. Later on you can also teach them to cook!”

Q: Is it truly important that children understand the whole financial thing?

Mr. Curran: “It really is, but probably when they are a little older, maybe pre-teen. My suggestion is to lay out all the bills and income (the budget) and let them get a look at what goes in and out of the household, moneywise. It might seem a little radical and a bit embarrassing, but it can be a valuable tool for the kids and at the same time, let them see that savings and financial goals are vital.”

Dr. Stahura: “That’s correct. We do tend to overlook the fact that kids are adaptable and they do want to learn. It’s just a matter of presenting the facts to them in a clear and concise way. It also makes us better parents because we are setting good money standards for both us and them.”

Q : How about the children that are away at school?

Mr. Sutch: “One of the most effective things for students to do is share. Sharing can include the cost of food, drink and snacks, the cost of books and activities. Things like household chores (if applicable) and rides to various places.”

Dr. Stahura: “I would add that keeping track of spending is important. A lot of students have credit cards and it might be their first experience with credit. Many students actually believe that they are using “free money” so they don’t take the bills seriously and might even throw them away. In doing so, they are already creating a negative pattern with their credit which is very hard to reverse.”

Mr. Curran: “There is no reason why students cannot create a budget, especially if their parents have already geared them toward that. Other things are making sure to buy used books, either online or from the bookstore. Remember too, that books can be resold if they are kept in good condition.”

Mr. Sutch: “Always take advantage of student discounts! There are many types of savings for students. Also share rides home during breaks.”

Mr. Bernstein: “You’ve been able to share a lot of good ideas with consumers during this Round Table. We’ll certainly do it again soon! Thank you.”

Last-minute Tax Tips

2011-04-14T05:28:00.000-07:00

If you roll into your office around lunchtime or show up late for your parents' 50th anniversary dinner, you'll probably need to provide a good excuse for your tardiness. In the latter case, you may also need a note from the emergency room doctor, or a photo of your car engulfed in flames.

But if you can't file your federal tax return by April 18, this year's deadline, you can get a reprieve until Oct. 17, no questions asked. With the deadline less than a week away, filing for an extension may provide a way to avoid last-minute mistakes that could cost you money.

To request an extension, file IRS Form 4868. Approval is automatic, but you must file the form by April 18 to avoid late-filing penalties.

You can fill out the form and mail it before midnight on April 18, or submit it electronically. Some tax software providers will e-file your extension for free. If your 2010 adjusted gross income was $58,000 or less, you can use the Free File program, a partnership between the IRS and tax software companies, to e-file the form. For more information, go to freefile.irs.gov.

H&R Block's 7,000 company-owned offices and most of its 4,000 franchises will help taxpayers file extension forms for free.

Taxpayers aren't required to hire H&R Block to prepare their taxes to take advantage of the promotion, spokeswoman Kate O'Neill Rauber says.

An extension will give you more time to file your return, but it won't give you more time to pay. If you owe the IRS money and don't pay by April 18, you'll owe interest and penalties on the unpaid balance.

To avoid that unhappy outcome, estimate how much you owe and include that amount when you file your extension. Don't lowball: The IRS may deny your extension if you underpay by too much, says Bob Meighan, vice president of TurboTax.

Last-minute blunders
Between 20% and 25% of taxpayers file their returns during the last two weeks of the filing season, according to the IRS. TurboTax has seen a slight increase in last-minute filings, which may reflect the growth of online tax programs and e-filing, Meagan says.

"People can wait, not only until the 11th hour, but the 12th hour," to file, he says.

Most taxpayers receive a refund, and this year the average refund is nearly $3,000. That's a powerful incentive to get down to business and file your return. If you're rushing to beat the deadline, here are some errors to avoid:

•Forgetting to claim the Making Work Pay credit. The 2009 economic recovery act included a credit of up to $400, or $800 for married couples who file jointly. Most workers received the credit in their paychecks through lower withholding. But even if you received the money, you still have to claim the credit on Schedule M of your tax return.

Tax software will do this automatically, but paper filers need to manually fill out the form, Meighan says. Otherwise, you could end up paying an additional $400 to $800 in taxes.

•Math errors. Math miscalculations are among the most common errors found on tax returns, the IRS says. If you're not comfortable using an online or desktop software program, at least consider using the IRS Free File Fillable program, which provides electronic versions of paper forms. You won't get the kind of advice you get from tax software, but the program will do the math for you. Once you're done, you can file electronically or print the forms and mail them.

You can find the program at www.freefilefillableforms.com.

•Overlooked tax documents. Tax software gets better all the time, but there are some problems it can't diagnose, Meighan says. If you leave out a W-2 or 1099, your tax software program can't comb through your files and find them for you. If you've misplaced some documents or think some haven't arrived yet — and depending on the type of investments you have, that may well be the case — file for an extension.

•Insufficient postage. Beating the filing deadline won't do you any good if your return comes back postage due. And, in what seems like spectacularly bad timing, postage rates will increase on April 17, the day before the tax deadline. The rate for a first-class stamp will remain at 44 cents, but the cost of each additional ounce will rise to 17 to 20 cents.

So it might not be a bad idea to weigh your return before you drop it in the mail slot.

Source

A Freezer Full

2011-03-08T05:27:00.000-08:00

A full freezer is cheaper to run than an empty one - Energy Star rating or no. So to save some money, store different sized containers of water in your freezer to fill it up.

This also comes in handy when your power goes out - it keeps your stuff cold longer and you'll have cold water as it defrosts.

Valentine's Day on a Budget

2011-02-13T08:51:00.000-08:00

Holidays are notorious for being a call for spending and Valentine’s Day is no exception, but there’s no need to spend buckets of money to empress your honey. Follow these tips and you’ll have a successful Valentine’s Day without blowing your budget.

Check out the oddest of places- The dollar store may not seem like the ideal place to pick up Valentine’s gifts, but you may be in for a big surprise. I went to the dollar store with the intentions of just getting a gift bag, but I found so much more! I bought my Valentine’s cards (that were simple, but sentimental and half the price of regular cards), tissue paper, and some yummy chocolate for my roommates. At the checkout I even spotted single red roses! My roommate and I were in such disbelief that we had to ask and the cashier assured us that the roses were real! In the end, the dollar store may not seem like the first place you would want to start your shopping, but just because the items are inexpensive that doesn’t mean they’re of cheap.

Try the outdoors- If you’re having nice weather, try packing a picnic instead of eating out. You can still have multiple courses without going to a restaurant and paying big bucks for it. Make everything prior to your outing, pack it up and tell your honey that you two are going to go for a little outing. Not only will you get brownie points for surprising her, who wouldn’t want a homemade meal created by the one you love?! Also, if the weather isn’t the best where you’re at, an indoor picnic can be just as romantic! Set out a blanket and some pillows and sit by the fireplace or watch the rain fall.

Here are some super easy recipes to get you started:

Chickpea Salad
California Club Sandwich or Lobster Club Sandwich
Raspberry Cake Bars

Lunch anyone?- If you and your Valentine would rather eat out, lunch time specials allow you to dine for a deal. Restaurants will either throw in a free salad bar or soup before your entrée, or some places offer a two for special that may include an appetizer, entrée and a dessert to share. If dinner is a more feasible option, try looking up places that are offering Valentine’s specials. These can be similar to the midday menu in which they may offer a free dessert or other incentives.

In the end, Valentine’s Day isn’t about the gifts or the deals, but showing the ones closest to you that you care for them. So if nothing else, be sure to say the one phrase that costs nothing by means everything….I love you.

America Saves

2011-02-01T14:17:00.001-08:00

Join the Growing Movement
To Get America Saving Again

Sign up your organization as a partner for
America Saves Week -- February 20-27, 2011

America Saves is a nonprofit campaign that

encourages savings year round and once a year holds

America Saves Week with employers,

financial institutions, non-profit organizations,

government agencies, educators and

youth organizations, the military and

media outlets to help people take financial action.

America Saves Week 2010 saw:
Participation by 1,800+ organizations across the country;
500,000+ people attended events, workshops, or tax sites;
More than 2.9 million reached through PSAs, ads, media appearances;
26,000+ people enrolled as Savers;

More than $110 million was pledged or added to accounts.
Visit the America Saves Week website to sign up

and find success stories, examples and ideas for how your organization can participate.

Please forward this post to your partner organizations to participate in

America Saves Week.

For information and support please contact Nancy Register at mailto:nregister@consumerfed.org?subject=ASW+2011

How to Stop the Florida Chill from Freezing Your Budget

2011-01-20T12:06:00.000-08:00

The FL Department of Agriculture estimates that approximately $273 million dollars worth of produce was lost due to the freezing temperatures of December and January causing produce prices to rise rapidly. Sweet corn and green beans are especially on the rise due to the tremendous losses that farmers faced. One farm based out of Pahokee claims that up to 80% of its sweet corn crop was damaged.

With prices seemingly always on the rise it can be difficult to save money while shopping, but there are a few tricks that can help with your grudge against the grocery store.

1.Frozen not fresh- Frozen produce may seem like an inferior alternative, but most brands ensure that their vegetables are picked at their peak, which leads to the most nutritional value. Also, frozen vegetables are washed and can come pre-cut which can save time too. Overall, frozen vegetables are just as good as fresh, but can last longer and won’t put a big dent in your budget.

2.Look down and save big- Most grocery stores put items that are priced cheaper toward the bottom of the shelf, so be sure to look from the bottom to the top. And while comparing items try the store brand too!

3.Always do your research- Though higher produce prices are hard to fight, most stores will have at least a few cents difference to try and lure in customers. So look online or in the newspaper for that week’s ad and compare specials.

4.Is it necessary?- Buying in bulk can save money in some instances, but when it comes to fruits and vegetables that may not be the best idea. Since these items are perishable, it’s better to buy what is necessary for the week ahead.

5.Stay local- Try shopping at your local farmer’s market. Not only would you be supporting local growers, the produce is guaranteed to be fresh since most growers pick a day or two in advance, then bring it to the market themselves.

6.Pick it yourself- When out during the weekends look for places where you can pick your own produce. Families that are trying to live greener have small plots of land where they grow an array of their own produce, and since these plots are smaller they are more manageable and are cared for more personally. So use the opportunity as a fun weekend venture and save some money too!

New Broward County Kids In Need Resource Center Opens In Pompano Beach

2011-01-20T07:16:00.000-08:00

Erika Rupp, a fifth grade teacher at Stephen Foster Elementary School, admits that she often spends $1,000 of her own money to purchase schools supplies for children in her classroom who can’t afford to buy the tools they need. M. Jacob Aronin, a teacher at Parkway Middle School, was able to reward one economically disadvantaged student with new school supplies when despite her lack of access to technology she was able to excel at her science presentation.
Rupp and Aronin represent teachers from more than half of Broward County schools that qualify for Title I services for children from low-income families, many of whom cannot afford basic school supplies. These teachers are now able to shop for free supplies in the new 7,100-square-foot Kids in Need Resource Center at 2300 W. Copans Rd., #5, in Pompano Beach.

The official grand opening of the Center will be held on Wednesday, January 26 from 8:30 a.m. to 10 a.m. The event is free and open to the public. For more information, visit (www.browardedfoundation.net).

The Kids in Need Resource Center was established 10 years ago by the Broward Education Foundation and has since provided school supplies to about 8,800 teachers who pass the backpacks, pencils, paper and more along to nearly 155,000 kids. The previous location was so limited in space it was only able to serve 50 percent of the teachers in Title 1 schools. The ultimate goal of the new center is to serve 100 percent of these teachers each school year.

The expanded facility will allow the Resource Center to more than double its hours of operation to three hours each week day and half a day on Saturdays.

“When more teachers have the opportunity to tap into the Center’s resources, the obvious beneficiaries will be their students – the ones who have few, if any, school supplies to call their own,” said Jorene Jameson, president and CEO of the Broward Education Foundation.

The Resource Center is one of 24 similar facilities affiliated with the Ohio-based Kids in Need Foundation.

Grand Opening festivities will feature two teachers like Rupp and Aronin who have submitted heart-warming stories about their students need of school supplies. Two winning essays will be selected by members of the Education Foundation Board of Directors. Those teachers will be able select as many free school supplies as they can grab during the 60-second 411-Pain Dash for School Supplies. This shopping spree, made possible thanks to a $1,000 donation from 411-Pain, will be in addition to the two annual visits to the Center offered to select teachers in Title I schools.

Festivities also will include a performance by the Pompano Beach High School Drum Line, an official ribbon cutting, and comments from Broward Schools Superintendent James F. Notter and Broward Education Foundation Board Chair Joseph Cobo. The two winning teachers also will have the chance to share their heart-warming stories about their students.

To open the new Center, Target donated more than $30,000 in display and storage shelving, while a team of 30 employees helped assemble the units and put out merchandise. Pirtle Construction Company donated over $13,000 in renovations to the new space.

For information on how to support the Resource Center with financial gifts or donated goods, call Hector Javier, store manager, at 754-321-9021 or E-mail ( hector.javier@browardschools.com).

Source

Living My Life ExpoEvent Dates: Dec 10, 2010 - Dec 12, 2010

2010-12-07T10:06:00.000-08:00

Event Website: LivingMyLifeExpo
Living My Life Expo will be the largest lifestyle consumer expo taking place December 10 - 12th at the Palm Beach County Convention Center, presenting the largest variety of companies to help you improve your life; mind, body, and soul!

You will find companies such as Debthelper.com; AT&T, Humana, ADT Home Security, CarePlus Health Care Plans, The American Cancer Society, David Lerner Associates, Hospice by the Sea, Lang Realty, and many more.

Register Today for your FREE TICKETS at www.LivingMyLifeExpo.com and enter to WIN A FREE RIDE IN A 2011 LAMBORGHINI GALLARDO SUPERLEGGERA and authentic Lamborghini apparel from Lamborghini Palm Beach!

Show Times:
Friday, December 10th 12:00PM - 8:00PM
Saturday, December 11th 10:00AM - 6:00PM
Sunday, December 12th from 10:00AM - 5:00PM.

Contact Information: info@livingmylifeexpo.com or (786)-454-8646

Park Avenue BBQ Grille is Rolling Back Prices

2010-11-29T13:43:00.000-08:00

In appreciation of your support the past 22 years, Park Ave is offering their most popular items at 1988 prices from Nov 29th - Dec 5th.

Full Rack of Back Ribs & 2 sides = $9.99
Pulled Prok Sandwich & 1 side = $3.99
Draft Beer = $0.99

Check their website for a location near you. Park Ave

Don't Buy Stuff - SNL

2010-11-02T08:20:00.000-07:00

Halloween On A Budget

2010-10-26T06:58:00.000-07:00

Looking for some cheap Halloween decor...costumes....pumpkins....whatever. Here are some links to help you in your search.

Halloween Ideas - my favorite were the cutest pet costumes. my jack russel/yorkie mix is going as a punk rocker. she has fur on her head that can be shaped into a perfect little mohawk. she's 9lbs of trouble!

How do you carve a good pumpkin? Here's some tips:

1. Good carving starts with the right pumpkin. Choose one that is fresh (with a sturdy stem and no bruises) and that has a flat bottom (so it won't roll).

2. Cut out the lid -- a boning knife works best. Cut on an angle (not straight up and down), so the lid won't drop inside the pumpkin when you replace it.

3. Remove the pulp. You can buy a special "claw," but an ice cream scoop will do. Thin the inner wall of the "face" area to 1 1/4-inch thick, so it will be easier to pierce the shell.

4. When you're ready to carve the features, hold the pumpkin in your lap so it's gazing up at you. Don't cut on a slant; clean up-and-down slices look best. To make intricate designs, try using a small saw. Pumpkin Masters makes a pumpkin-carving kit with two saws, a poker, a drill, and 16 nifty patterns ($6.95 to $10.95; at mass merchandisers or yankeehalloween.com).

5. Make a tongue out of a discarded piece of pumpkin shell.

6. Keep your pumpkin fresh. Spread petroleum jelly on the cut edges to seal in moisture. If your pumpkin still shrivels a few days later, revive it with a facedown soak in cold water for up to eight hours.

7. If you like to leave the lid on while the candle is lit, create a chimney. First, leave the lid on for a few minutes while the candle burns, then make a small hole where the lid has blackened.

8. Sprinkle a little cinnamon inside the lid. When you light the candle, your jack-o'-lantern will smell like a pumpkin pie.

Don't feel like carving? Here are some great non-carving ideas:

No Carving for me Thank You!

Halloween Food Ideas: one of the best i've seen is the kitty litter cake. it looks absolutely appalling, but tastes pretty good. PERFECT for Halloween! Click here for the recipe.

Kitty Litter Cake

AICCCA Advises Consumers to Start Holiday Planning Now

2010-10-14T11:18:00.000-07:00

A certain North Pole resident is a bit concerned about how the summer's current economic climate will affect the winter holiday season. The Association of Independent Consumer Credit Counseling Agencies (AICCCA) says that consumers (and even Santa) should start their holiday planning now.

"By starting a holiday shopping plan or savings account now, consumers can spread out the cost over a longer period of time without resorting to the use of credit," said Dave Jones, president, AICCCA. "This is especially true for those who are already struggling."

AICCCA offers these tips for getting started on your holiday planning:

Determine the amount of money you can spend. Whether you are planning to go ahead and begin shopping now or want to open a holiday saving account, you will need to decide upon the funds available for use. Plan to pay for all purchases, or put money away, with cash on hand. Avoid charging unless you can pay the balance due in 90 days or less.

Follow Santa's example and make a list. You'll need to record every person you plan to shop for and assign a dollar amount to their gift. Check your list against the amount you decided you could spend to be sure they line up. Make any necessary cuts before you start shopping.

Keep your eyes out for bargains. Take advantage of any summertime trips to look for unique or unusual gifts for those on your list. Be sure to make a note of purchases and mark that person off of your list.

Go online. Rising gas prices may be keeping you close to home this summer, but that doesn't mean you don't have options. Ordering online now will enable you to avoid costly shipping fees. Many online retailers offer free standard shipping and offer some great summer deals. You won't get your items overnight, but you have the time to spare right now.

Get crafty. Summer is a great time for crafts, for both children and adults. Put little hands to work on gifts for family members on a rainy day. Get started on your own craft projects now and you can cut down on last minute stitching, or other craft-related chores, come the holidays.

AICCCA cautions consumers to be prepared to change their plans as their circumstances change. Make a plan now, but be flexible. Revisit your plan regularly and make adjustments where necessary. If you need help, contact an AICCCA member at 866-703-8787.

Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call 866-703-TRUSTAICCCA (866-703-8787) or visit www.aiccca.org.

How to Build Savings from Spare Change

2010-10-05T13:20:00.000-07:00

By Miranda Marquit (Staff Writer), on October 1, 2010

“See a penny, pick it up. All day long you’ll have good luck.” This little poem is one that I remember from my youth. It was brought back to my attention as my son and I rolled coins from his allowance jar. As we rolled the pennies, he asked, “Is it worth it to keep pennies when you find them on the ground?”

I thought for a few seconds before replying, “Sure it is. It’s a penny you didn’t have before. And the small things eventually add up to something bigger.” I gestured to the three rolls of pennies sitting before us amongst rolls of quarters, dimes and nickels. “All of those pennies added up could by you two candy bars, or something at the next school book fair.”

Of course, saving up pennies isn’t going to pay for his college, and it would take him forever to save up enough for the video game he’s been wanting, but even small savings can add up to something later — even if that something is, itself, relatively small. But it’s something you didn’t have before.

Using Spare Change to Build Your Savings

The same lesson can be applied to using spare change to boost your savings. You can boost your savings account with help from the quarters, nickels, dimes — and even pennies — that you get back from your cash transactions. Keep these coins in a jar, and every so often roll them and take them to the bank. While the few dollars that you put in each month may not make a huge difference, it does add to what’s in your account, and can result in earning interest that you would not have earned before.

If you use cash, this can be relatively easy; come home and empty your pockets and purse into a special jar. If you are interested in boosting your spare change savings even more, you can add dollar bills, although that’s not exactly change. Any time you pay with cash, take the change and set it aside. You can even plan to use cash on some purchases so that you get the change back to set aside.

Spare Change for the Digital Age

Of course, cash is being used less and less. Inflation has eroded the purchasing power of our money, and the convenience of debit cards and credit cards is replacing cash. This means that your spare change may not add up as much as you would like it to. But that doesn’t mean that you can’t use similar principles.

With the help of personal finance software, you can create a system in which “change” is deposited into your short term savings account or your emergency fund. Every week or two, go through your transactions, and round them up to the nearest dollar. Then, add up all the differences (this can be made easier with a spreadsheet) and take the total and transfer it to your savings. Let’s say you have five transactions over the course of a couple of days, and you round them all up to the nearest dollar and take the “change” for a savings account:

$10.65, round up to $11.00, difference $0.35

$27.80, round up to $28.00, difference $0.20

$5.78, round up to $6.00, difference $0.22

$50.24, round up to $51.00, difference $0.76

$3.56, round up to $4.00, difference $0.44

Your total for those couple of days would be $1.97. Chances are that you make many more than five transactions in a month, so you could probably put an extra $30 to $50 aside each month, depending on how many transactions you make. This could amount to another $360 to $600 a year. (There are some debit cards that will automatically do this for you, but you should be careful to read the terms and conditions.)

In the end, using spare change to build your savings probably isn’t going to save your retirement. However, it can put a little more in your savings account. In an emergency fund, it might mean one or two more months of utilities, or the ability to make a car repair. In your short term vacation savings fund, it could mean a hotel upgrade, or enough to stay an extra day. If you make a plan, even the small things can add up enough to make something of a difference.

Source

Shop Early for the Holidays and Save

2010-09-27T10:45:00.000-07:00

Yes, it’s that time of year again. The weather’s getting colder. The kids are back in school. Before we know it – our eyes will be turning toward the holidays. And now is the time to think about rescuing your wallet before it’s too late. Every year, people wait until the last minute to start their holiday shopping and wind up spending much more than they should have only to regret it later. You don’t have to be one of them.

Start Your Holiday Shopping in September
Starting your holiday shopping in September can help you save money. When you start shopping this early, you don’t feel the pressure to buy everything all at once. On average, those who shop between Thanksgiving and January spend more than those who hit the malls in September and October.

Prices also tend to be lower in September and October, so starting now can keep your spending to a minimum. Malls and other retailers make the majority of their income during the holiday season – particularly between the months of November and December. That’s why prices tend to go up after Thanksgiving – and why many people suffer with tremendous debt afterward.

While holiday shopping may be the last thing on your mind when you’re caught up in the throes of raking leaves and the responsibilities of a busy life, shopping early will save you money. Plus, the malls are less crowded this time of year and you have a much better selection of merchandise.

Opt for Online Shopping
If you start shopping now, you will find you are more relaxed and better able to enjoy holiday festivities. Many people prefer doing their shopping online to going into the stores. Shopping online is a great way to save money. You pay for shipping, of course, but you’re less likely to make impulse buys like you would at the malls. The key is to do your holiday shopping gradually.

Set a Holiday Budget
Set a holiday budget and stick to it. Keep a spreadsheet or document of how much you have spent, and keep an eye on it throughout the holiday shopping season. Another benefit of shopping online is the fact that you can compare prices on different websites and get the best price. You can find many products cheaper on sites such as Amazon and Ebay. When shopping online, search for the items you want on your favorite websites, then compare prices on the same item.

We’ve all found ourselves crying the blues in January, because we were a little too merry one holiday season. You gave in to impulse buys, because they were dirt cheap. And now you are knee deep in holiday debt. Remorse inevitably sets in with the realization that you have credit cards to pay.

Be smart this season and spend only what you have in cash. Avoid using credit cards. Pay for gifts using a debit card or cash you have in your wallet. That way, you can keep an eye on how much you’re spending. And you won’t be tempted to spend more than you can afford.

Source

Looking 4 cheap gas buddy?

2010-09-22T22:18:00.000-07:00

GasBuddy.com

This website provides up-to-date information about where to find the cheapest gas prices in your neighborhood.
http://www.gasbuddy.com

my morning thought,,,,

2010-09-03T05:19:00.001-07:00

on the way into work this morning, flipping through the radio trying to find something decent to listen too...(i hate corporate radio, but that's another story) ... it hit me that i have to take my driving course this weekend online to avoid getting points on my license. i really don't want to waste 4 hours of my time doing some stupid online driving course that is completely useless in my opinion. the only reason any one does it is to avoid points...and maybe avoid paying an extra $1.

now, if i don't take the course, i'm saving about $40 not taking it, but by not taking it the points are added on to my license. which means, my insurance is going up. do i really want to pay more on insurance? i don't think so.

the moral of my story...don't speed like a dumb-ass, especially if you know it's a high radar area.... don't listen to hardcore music while driving either. (i think the music was my downfall.) i could have saved $191 on a ticket i should have never gotten and $40 for a class i do not want to take!

$231 of unplanned budget expenses. this is why it's always a good idea to have a little emergency money set aside for those "what the hell was i thinking" moments.

having $$ issues? call us. we can help. Debthelper.com. A+ with the BBB. 800.920.2262

Water - On Sale Now

2010-09-02T23:42:00.000-07:00

walking into the drug store to get some bandaids for my kid who scraped her knee while being a kid, i noticed a sandwich board style sign at the front door... Bottled Water on SALE NOW - it was literally marked down. i chuckled

Recommended Personal Finance Reads
My Dollar Plan: Leaving My Job: Q & A
This Wasn’t In The Plan: What Went Up…Is Now Coming Down
Green Panda Treehouse: How My Retirement is Currently Doing?
Mighty Bargain Hunter: Back to Basics: Start doing the little money-saving things again
No Credit Needed: Top 10 Ways To Save Money – Number 5 – Follow Through
Brip Blap: A Zero-Sum World View
Frugal Dad: A Broken Recliner Puts Frugality to the Test
Gen X Finance: The Social Security Administration’s Windfall Elimination Provision
Rich Credit Debt Loan: Investing in a Crisis
Saving To Invest: Teaching Kids about Stocks and Investing
No More Spending.net: How Simple Are Your Finances?

The Call to Action

2010-08-26T05:34:00.000-07:00

Top credit card issuers back debt repayment relief program

New 'hardship' debt management plan created, with lower payments

By Jeremy M. Simon

Ten of the largest U.S. credit card issuers have agreed to make it easier for troubled cardholders to repay their debts.

That change was announced today by the National Foundation for Credit Counseling, a major nonprofit consumer credit counseling group. In fall of 2008, the NFCC issued a "Call to Action," asking creditors to make changes that would lower the cost of consumer participation in debt management plans, or DMPs -- programs administered by accredited consumer credit counseling agencies to help families drowning in debt work out reasonable long-term repayment plans with creditors.

The 10 issuers supporting the "Call to Action" are American Express, Bank of America, Capital One, Chase Card Services, Citi, Discover Financial Services, GE Money, HSBC Card Services, U.S. Bank and Wells Fargo Card Services. Of the top 10 issuers, only USAA is not included. (Although USAA is a top 10 issuer by market share , it was left off the list because it is not a top 10 creditor for NFCC member agencies.)

Essentially, the plan creates a second tier of debt management plans for people in particular distress, allowing them a lower repayment rate.

According to the NFCC release, "For more than 40 years, consumers have avoided bankruptcy and benefited from repayment programs commonly referred to as 'debt management plans' (DMPs) through which creditors provided some repayment concessions, including waiving late and over-the-limit fees and a reduction in interest rates. However, in these tough economic times, fewer consumers have sufficient income to be eligible for, or the ability to maintain, a traditional DMP, often leaving bankruptcy as the only option."

What the changes would mean

Ten of the largest credit card issuers have agreed to adjust their "debt management plans" that allow struggling consumers to get structured repayment plans. The changes include:

•"Hardship" cardholders -- those who are dealing with a recent job loss or other especially challenging circumstance -- would owe a minimum 1.75 percent repayment rate.

•Other consumers would have a monthly minimum repayment rate of 2 percent of their balance. Under existing DMPs, that rate can reach as high as 3 percent.

•This means that a hardship consumer with $20,000 in debt would face a minimum payment of just $350 instead of one as high as $600, while the minimum payment for other consumers would be $400.

•Some level of savings would be encouraged, not discouraged.

That number appears to be growing. Overall, delinquencies are continuing to rise, and major issuers are choosing to charge off more and more of their holdings. For example, Capital One said its net charge-off rate for U.S. card holders -- the percentage of loans that the issuer has given up on collecting -- rose to 9.33 percent in March, up by 1.27 percentage points from February.

When it comes to struggling borrowers, the plan "makes the repayment of the debt more affordable and more relative to today's reality of what consumers are struggling with," says Gail Cunningham, senior director of public relations for the NFCC.

Under the new system, "hardship" cardholders -- those who are dealing with a recent job loss or other especially challenging circumstance -- would owe a minimum 1.75 percent repayment rate, while other consumers would have a monthly minimum repayment rate of 2 percent of their balance. Under existing DMPs, that rate can reach as high as 3 percent, Cunningham says. That means that a hardship consumer with $20,000 in debt would face a minimum payment of just $350 instead of one as high as $600.

This isn't the first attempt to encourage consumer enrollment in DMPs. In October 2008, banking industry representatives and consumer advocates introduced a proposal that would have enabled creditors to forgive up to 40 percent of the principal on credit card loans and stretch repayment plans over five years. However, the Office of the Comptroller of the Currency (OCC) ended up rejecting the plan in November.

The new, tiered DMPs offers benefits to both consumers and lenders, the NFCC says. The new program would enable tens of thousands of borrowers to join a DMP, adding $677 million of unsecured debt to new DMPs each year, according to NFCC's Cunningham. Furthermore, $135 million would be returned to creditors annually, she says.

In addition to helping borrowers erase their debt, the new DMP plan also encourages them to set aside funds for a financial safety net. "We've plugged in several of the basic building blocks of financial stability under this plan," Cunningham says. In the past, debt management plans demanded every spare dollar be applied to paying off debt. Allowing people to build some emergency savings would prevent them from falling back into debt easily.

Think you could use help from a DMP? For people dealing with their own debt and where to turn...Debthelper.com can help you! Call us 800.920.2262.

Free lunch

2010-08-16T09:23:00.000-07:00

Subway & HealtHub (www.healthub.org) have sponsored a community outreach program as part of a national goodwill campaign.

A local volunteer doctor who specializes in nutrition & stress management will come on-site to your company or organization and deliver a 30 minute educational & fun presentation with a complimentary catered Subway breakfast or lunch for your employees.

An event coordinator will get back to you within 2 to 3 business days. All you need to do is fill out the form below and they will do the rest!

Subway & HealtHub have successfully provided this program for: Morgan Stanley, Merrill Lynch, US Bank, Citibank, Costco, and Boeing to name just a few. References are available upon request.

All you need to do is register at subwaygoodwill2010.org and you will be contacted by an event coordinator.

Also remember to ask about our free health screenings (blood pressure, self defense, yoga, massage etc.). To your health!

http://subwaygoodwill2010.org/

Chic for Cheap!!

2010-08-08T15:59:00.000-07:00

Were you planning a total home renovation before the economy slumped?

Well you can still make a few changes without knocking down walls or tearing a hole through your pocket! Follow these simple steps for an easy, cheap way to bring new life to one of the most renovated rooms in house.

1. Feeling closed in?: The paint color that’s on the walls can do a lot for a room. To make your bathroom feel larger and have more of a spa feel, try using tranquil light blues and or a sea foam green. For a more warming and gender neutral bathroom, maybe try shades of caramel or cinnamon.

2. How’s the hardware?: Replacing the outdated hardware on your cabinets can make a big impact without the big price tag. New sleek and modern styles help bring your bathroom into the 21st century and are also one of the fastest and easiest do- it-yourself projects.

3. Set the mood: Light fixtures can easily make or break your space. Old fixtures can be bulky and unappealing, but luckily this is also an easy fix. Not only do the newer version of light fixtures range from fashionably calm to ultra modern, some are designed to emit more light without necessarily using as many light bulbs.

4. Indulge yourself: New showerheads can be a bit pricey, but if you’re willing to splurge there isn’t a lack of variety by far. There are all types of colors, designs and even eco-friendly styles.

5. Try new accessories: Try even the easiest of changes, like replacing the shower curtain or towels. Even this small change can liven up a boring bathroom and bring the sophisticated feel you were looking for without being too drastic.

Overall, home renovations can be as simple or intricate as you’d like. Just be sure to shop around for the best prices, so in the end, all your hard work pays off.

For more renovation ideas check out these websites:
HGTV
Home Improvement
Paint Colors

Unexpected Industries Forced to Hike Sales Tax

2010-08-03T14:12:00.000-07:00

Due to gaps in revenue, states around the country are raising sales tax in surprising areas. Taxes are being being raised in industries and services that won’t get a large amount of opposition from taxpayers. These industries are also being chosen because they don't have the political force needed to fight the increases.

In Pennsylvania, a six percent sales tax on plumbing and electrical service is being proposed along with a six percent tax on shoe repairs. Those opposing the tax say this is being done because “shoe repairers…don’t have the political heft to fight the plan…” Similarly, in New York, a four percent sales tax might be added for watch repair and tailoring.

Other taxes might include an additional four percent sales tax on the cost of gym memberships in the state of Alabama. The interesting part of this situation is that a similar tax was proposed in Washington, D.C., but gym attendees, especially yoga enthusiasts, raised strong vocal opposition and the idea was shot down.

In other areas of recreation, 27 states already have sales tax on the use of bowling alleys and a few more, including New Mexico and North Carolina, might join the trend. Another popular tax that is being charged is for boarding riding horses. In Arizona, a 5.6 percent sales tax might be added to the basic costs. Similar taxes are already in affect in Nebraska and South Dakota.

One other popular recreational area that might be affected is golf. In Kentucky there might be a six percent sales tax added to greens fees; golfers should know what decision is made by year’s end.

Overall, be wary of rising costs in services and industries that you are fond of using. And if you find that an industry may have sales taxes added on to it, raise questions and maybe even form an opposition group.

To see how many states are adding taxes and to which areas see this New York Times chart.

To learn what your state may be taxing, view the Kiplinger Slide show.

Sources:
The New York Times
NYT Bucks Blog

Kiplinger

What is Your Job Costing You?

2010-07-27T13:56:00.000-07:00

Salary is obviously an important factor when looking for a job, but what else should you factor in? Have you ever thought of what the job may cost you?

Certain jobs require standards that you may have thought of before but not in the sense of what it could cost you financially. For instance, if you apply for an office position that requires you dress a certain way, this could amount to several costs. It could potentially build up dry cleaning costs, or the costs of expanding or building up a new wardrobe if you previously worked in a more relaxed setting.

The next cost is transportation. Public transportation can be cheaper, but it can take longer in terms of time and can be less reliable than driving yourself. However, if you do drive yourself, the obvious cost would be gas.

Another area where your job could cost you would be in child care. If you aren’t able to leave your child with a family member or friend, and there isn’t a child care center on site, this could amount to a hefty price tag.

“Several studies have shown that many working parents spend most of their paychecks on child care, and sometimes parents who work part-time end up losing money,” according to Anthony Balderrama, a writer for CareerBuilder.com. There might even be extra costs if you need to leave your child in an after school care program due to the hours you work.

Depending on your job, another cost could be your cell phone. Though some companies reimburse their employees or give company issued phones, if you take after hours phone calls or end up doing some work from home, it could end up coming out of your pocket.

In addition, if you do the type of work that may require swaying a client by taking them out to lunch or spending a Saturday on the golf course, this may come out of your pocket since it most likely won’t happen on company time.

Overall, if you are unemployed finding a job is clearly a priority, but think about what it could be costing you before signing on the dotted line. Also, if you have the credentials to prove that you would be an indispensable asset or when you get some seniority in the office, maybe negotiate a raise or reimbursement costs with your boss. This way you could actually make some money from your paycheck.

Source:
MSN website

Back to School and the Credit Crunch

2010-07-27T07:24:00.000-07:00

By Andrew Bernstein/Debthelper.com

As you begin to get back into school activities, there are some ideas we would like to share with you, to make the process less stressful and more successful! What we have discovered over the years is that most families do not go into back to school shopping and activities with any sort of game plan. Just as it does during the holidays and the end of school, laying out a significant amount of cash for clothes, presents and vacation activities, there is a great deal of stress placed on the family and its budget. Here are some easy ways to avoid problems.

• Let Reason Reign: Create two separate lists as to what the kids need and what they want. There are certainly items that are important to their educational growth and it is essential that you contact their school to see what might be available there as to equipment and supplies they need. The rest is up to you.

• Be creative in your process. Create a list before you go shopping. Make sure you have the shopping trip(s) scheduled and you have given yourselves enough time to get everything done. Plan a nice lunch during the day and try to make it a positive experience for both you and the children. (If more than one child, try to take them on separate shopping trips so they have that time with you.

• Look for SALES! There are certainly a number of back to school sales from all types of stores. They might have coupons, in-store circulars or online sale information. Don’t forget your Sunday newspaper, radio and television and some of the weekly and monthly publications you might get. Compare prices. This might be a great project for the kids!

• Make the children as much a part of the process as you can. If there are projected battles regarding clothing styles and other items, discuss it before hand. Let them explain why they want a particular thing and remember to discuss it not argue. Try to be liberal when and where possible. Observe what other kids are shopping for and talk to the sales clerk at the store. That way, your child is getting the opinion of a paid professional and not just mom or dad!

• Remember that you do have the final say. If, having gone through the above process, you are opposed to a certain item, be ready to explain why. (I know: parents shouldn’t have to explain, but it really does keep discussion open and makes for easier times in the future!)

• DON’T OVERSPEND!! This is important, particularly if you are using credit cards. Many parents do use them and ending up with sticker shock when the next bill appears. See the first item above.

Finally, remember that it’s just once a year. Happy shopping!

If you need help planning a budget and staying out a debt, Debthelper.com can help. Call us today! 1-800-920-2262. The consultation is free!

U.S. credit card agreements unreadable to 4 out of 5 adults

2010-07-22T12:53:00.000-07:00

Contracts written at a reading level most can't understand
By Connie Prater

Wonder why you can't seem to make it through your credit card agreement? It's heavy reading: A CreditCards.com analysis found that the average U.S. credit card agreement is written on a 12th grade reading level, three grades above the average American's reading level.

Credit card agreements are written on average at a 12th grade reading level, making them not understandable to four out of five adults, according to a CreditCards.com analysis of all the agreements offered by major card issuers in the United States.

The average American adult reads at a ninth-grade level and readability experts recommend important information -- such as credit card agreements -- be written at that level. Only one in five adults read above a 12th-grade level.

"It is clear from your study that something must be done to make these agreements easier to read," says Lauren Z. Bowne, staff attorney for Consumers Union, the nonprofit owner of Consumer Reports magazine.

"Credit card contracts and other such documents are written in dense prose for a reason: So that the customer will NOT be able to understand it," notes Roy Peter Clark, a national expert on writing and a senior scholar at the Poynter Institute in St. Petersburg, Fla. "I may be cynical, but I don't think their writing strategies are accidental, the collateral damage of a bureaucratic mindset. I think those writers know exactly what they are doing."

Readability poses Catch-22
Bowne points out what has become a Catch-22 for many credit cardholders. Told to read their agreements, they can't. Credit counselors are urging card users to carefully read their mail and credit card agreements to stay on top of all the new card rules and recent changes in terms. In the new world of credit card use, they say, an informed consumer is better protected against "gotcha" fine print and surprise penalties.

However, as the CreditCards.com analysis shows, many adults may not be able to comprehend what they are reading.

"That's easy to say, but sometimes difficult to do," says Andrew Bernstein, a certified credit counselor for DebtHelper.com in West Palm Beach, Fla. He gives seminars on reading the small print of credit card terms. Clients often turn to credit counselors to help them decipher the fine print. Says Bernstein: "Credit counselors struggle reading it, too."

"Something must be done to make these agreements easier to read." Lauren Z. Bowne, Consumer Attorney

Researchers analyze more than 1,200 contracts
CreditCards.com hired a team of researchers who, using computer software, downloaded and analyzed every word of the majority of credit card agreements offered in America. More than 1,200 contracts were included in the analysis.
This became possible for the first time in May 2010, when the agreements were publicly posted in a new Federal Reserve database; large card issuers were required to give the Fed their agreements, and the Fed was required to post them online, by the Credit CARD Act of 2009.

CreditCards.com (see the study's methodology details) graded every statement using a standard common in the teaching and textbook industries: the FOG Index. Readability formulas have been widely used by textbook and novel publishers for decades to ensure they weren't writing above the reading levels of their target audiences.

FOG stands for "Frequency of Gobbledygook" -- and it gives a numeric grade for any document. The higher the grade level, the more difficult it is to read.

Gobbledygook? We encountered it frequently.

Can you read this?
The CreditCards.com analysis found:

•The average U.S. credit card agreement is written at a 12.37 grade level. Note: Reading levels do not correspond to the number of years of school a person has received. Some people with high school diplomas read at the ninth grade level even though they received 12 years of education.

•The toughest read: GTE Federal Credit Union's agreement, which required an 18.5 reading level -- the equivalent of someone who has spent more than six years in college. (See video of how ordinary people fared in trying to read GTE's credit card agreement.)

•The wordiest agreement -- for MasterCard and Visa cards issued by Fifth Third Bancorp -- contained 20,799 words. It was written on a 14.5 reading level, according to the analysis. For comparison, the original U.S. Constitution contains only 4,018 words. William Shakespeare's shortest play, "The Comedy of Errors," has 17,858 words. (See the list of wordy credit card agreements.) The average agreement runs 3,771 words.

•The easiest reads, according to the analysis, required only sixth grade reading proficiency. They included credit card agreements from the University of Illinois Employees Credit Union, ESL Federal Credit Union and Affinity Federal Credit Union. (See list of the most readable credit card agreements.)

•The analysis found it's easier for the average American to read a California real estate purchase agreement or a chapter in the King James Bible than to plow through the average credit card agreement. (See how credit card agreements compare in readability to familiar documents.)

•Among the top 20 credit card issuers, those that issue more than 95 percent of all credit cards in the United States, two divisions of Wells Fargo & Company showed dramatically different results. The average agreement from Wells Fargo Financial National Bank required a 15.7 reading level. The larger and more well-known Wells Fargo Bank NA hit the readability mark: Its agreements had average reading levels of 9.3 -- exactly what readability experts recommend. Wells Fargo announced July 7 it was merging the smaller banks' operations into the larger one. Expect a rewrite on the more difficult contracts. "We anticipate that card products, terms and agreements will be further standardized in the near future. We want to help our customers succeed financially and we understand clear communications are fundamental to achieving that objective," a spokeswoman said in an e-mailed statement. First National Bank of Omaha's 15.8 average reading level makes it a virtual tie with Wells Fargo Financial for the most unreadable contracts among large issuers.

•Other large banks, on average, provide easy-to-read agreements: U.S. Bancorp (8.9), Bank of America (9.0), Barclays Bank Delaware (8.1) Citibank South Dakota, NA (8.2), American Express Bank, FSB (8.1) and Capital One Bank, NA (7.3). Consumer advocates say if these banks can produce more understandable agreements, other issuers can, too. (See how the large credit card issuers' agreements compared.)

Deliberate confusion?
Consumers and others accuse the banks of deliberately writing unintelligible agreements to confuse cardholders.

"I got lost in the first sentence," Ron DeLa Rosa, an attorney in Austin, Texas, says after reading GTE Federal Credit Union's agreement.

"I'm sure all those legal minds came up with all those words to make things as confusing as possible for whoever the credit cardholder is 'cause that way when they get sued they'll always have a way out," DeLa Rosa says, adding: "That's the way attorneys do it."

Bankers deny deliberate deception and defend the densely worded fine print, blaming all the federal and state laws that require disclosure of terms. "It's unfair to say that these are deliberately made complicated," countered Nessa Feddis, a spokeswoman for the American Bankers Association. "They try to make them simple, but there are legal requirements for disclosures."

A new Consumer Financial Protection Bureau -- signed into law by President Obama on July 21 as part of the 2010 Wall Street reform package -- may offer some relief. Among other things, the agency will have the power to mandate that credit card contracts be written in plain English so a majority of Americans can understand them.

"Americans need adequate information about the benefits and costs of complex consumer financial products such as credit cards to make the personal choices that are best for them," Michael Barr, assistant U.S. Treasury Secretary for financial institutions, said in a statement responding to written questions. "Improving basic financial awareness is also critical to helping consumers process information and avoid abusive products. These are just some of the reasons we need to establish a federal bureau of consumer financial protection."

Ohio Attorney General Richard Cordray, who has been an outspoken advocate for more credit card regulations to protect Ohio residents from abuse, said credit card lenders should make their agreements more consumer friendly.

"While it is true that much of the content for agreements is mandated by federal statute, it is clear from the breakdown here that some institutions meet the requirements at a reasonable reading level. All others should do the same," Cordray said in a statement.

When something goes wrong
Credit card agreements contain the fine print of the credit card terms and dictate how millions of credit cards issued in the United States may be used. Banks and credit unions mail them when card users first open their accounts or when customers request copies. They are often put away in a drawer or tossed with the junk mail. Credit counselors and consumer advocates say the truth is that very few cardholders ever read their agreements -- until something goes wrong.

"If people don't read these things when they open the account, they sure as hell need to read them if they have a problem," says John Cogan Jr., executive assistant for policy and program review and executive counsel to the Rhode Island Health Insurance Commissioner. Rhode Island is one of a handful of states (including Colorado and Minnesota) that have adopted laws or rules requiring health insurance policies to be written at seventh, eighth or 10th grade reading levels.

"If you have a problem with your credit card company or your health insurance company, even if you don't take the time to read it at the outset, you really do need to read it if something happens. So, if you can't read it then, then you're really in a tough spot."

Erica K. Jackson, director of the Center for Financial & Consumer Outreach at Penn State Erie, recommends consumers call their card issuers' customer service representative and ask for explanations of confusing terms or provisions. She acknowledged, however, that customer service representatives may give conflicting or inaccurate information at times.

"Consumers need to ask questions," Jackson says. "If you don't understand what is included in your documentation, be proactive, make sure that they call and get the answers that they need."

Content more important than readability?
Ed Mierzwinski, consumer program director for U.S. Public Interest Research Group (PIRG), is all for readability, but is more concerned about what the contracts say and any "tricks and traps" contained in them than how they say it.

"What good does being able to read a contract mean if the contract says, 'We win, you lose'?" Mierzwinski points out.

"What good does being able to read a contract mean if the contract says, 'We win, you lose'?"
-- Ed Mierzwinski , U.S. PIRG

Linda Sherry, national priorities director for Consumer Action, a San Francisco-based consumer group, says credit card agreements should be written at the ninth grade level.

She added: "The agreements tell you little about your so-called 'rights' and focus solely on your responsibilities under the one-sided agreement. Since these are contracts of adhesion, and consumers can't amend the terms, they are useless in that regard, no matter how simply they are written.

"If they can still -- mostly with notice but sometimes without -- change the terms at any time for any reason, consumers have no power except to vote with their feet, and given the similarity across the six largest companies, that is not much of a choice."

Banks: Wordy contracts unavoidable
Banking industry spokeswoman Feddis says lengthy, complicated agreements are unavoidable because credit card companies must obey the laws governing what they must disclose to card users.

"Information like what happens when your card is lost or stolen, that has to be in the agreement. The privacy notice took up a third of the space on one contract. There's no choice," says Feddis, vice president and senior counsel of the American Bankers Association trade group.

"If you're married and living in Wisconsin, you get this disclosure, and if you're in Maryland, you get another one," Feddis adds. "It's just stuff that has to be in there for legal reasons."

William DuBay, an author and readability consultant whose clients have included the Los Angeles County Consumer Affairs Department, argues that if consumers can't understand what they are reading, they can't give informed consent to the terms. Informed consent is a term often used in the medical field. It means you understand what you are agreeing to and signing.

The two points of view highlight a debate that has developed among attorneys who specialize in contracts law.

Feddis says there's a limit to how simple the credit card agreements can be. "Then you don't have a contract -- or you have a contract that can be challenged. Then it goes to an extensive lawsuit."

Says DuBay: "People say you can't get everything in one page. But it's not rocket science. You just have to find out what's essential. You have to force their hand."

Clearer communications
A few banks took steps to make their credit card terms easier to understand and accessible to customers. Chase, which had credit card agreements that averaged 12.7 in reading level in the analysis, introduced its Clear and Simple program in 2007. Bank of America launched a campaign -- the Credit Card Clarity Commitment -- to make its credit card terms clearer in 2009.

"We listen to our customers and are always looking at ways we can improve our card agreements to ensure that we're providing customers with clear, easy to understand information," BofA spokeswoman Betty Riess said in an e-mailed response.

Wells Fargo Bank's ninth grade average reading level was no accident, according to Lisa Westermann, assistant vice president of public relations.

"The Wells Fargo Bank Credit Card agreements are among the briefest in the industry and are rated at a ninth grade comprehension level; consistent with the level reading experts recommend. We continually work to make our letters as clear as possible using 'customer friendly' terminology. We began an initiative several years ago to ensure our customer communications are clear, concise, consistent and customer friendly," according to Westermann.

Leslie E. Linfield, executive director of the Institute for Financial Literacy in Portland, Maine, and a national authority on adult financial literacy education, says offering plain English credit card agreements may give one bank a competitive advantage over other issuers.

Linfield says issuers with easy-to-understand terms send the message: "We want to be your financial institution of choice. We speak in plain English. There's nothing complex. You don't have to go to graduate school to understand what it means to do business with us."

Too hard for most adult readers
The average credit card agreement is written at a 12th-grade level -- too high for most Americans to understand, according to national literacy surveys.

"The average adult in the U.S. reads at the ninth grade level," says DuBay, the readability consultant who advocates the use of "plain language" when writing for the general public. A 2003 U.S. Department of Education study of adult literacy found that 87 percent of people older than 16 were rated "less than proficient" at reading lengthy, complex texts. Research based on the federal literacy survey shows only one in five adults read above the 12th grade level, according to DuBay.

"Experts advise that anything for the public should be written at the ninth grade level," he says. "If it's about health and safety, it should be written on the fifth grade level."
He adds: "People can identify a text that's too difficult almost instantaneously ... They're very good at recognizing it."

As for credit card agreements, "The average reader is not able to read them ... A credit card contract should not be more than a page long. It should be written in easy-to-read type," DuBay says.

Fed now requires one-page summary tables
The Federal Reserve took steps to help confused consumers by requiring credit card issuers to produce a one-page summary table of some of the key terms of their contracts. That requirement took effect July 1, 2010, as part of a slew of other beefed up disclosure requirements included in Regulation Z of the Truth in Lending Act.

Now, when consumers get new credit cards, they will also receive a new one-page summary table of the terms. However, this table is not the credit card agreement. In disputes, the legalese-filled long form governs.

Feddis, from the bankers trade group, says the new summary will help simplify the long agreements. "They are more likely to read that than they are an agreement even if the agreement is shortened and simplified," she says.

Sherry from Consumer Action is skeptical of summary tables that will condense the key terms into one page. "I am afraid people will focus only on some superficial level stuff and not really understand all 'traps' that may await them."

This story's FOG index
By the way, congratulations. You have finished reading a story whose FOG readability is 14.3.

The methodology: How we did it

CreditCards.com copied the list of more than 1,200 credit card agreements posted on the Federal Reserve Board's website. Under the Credit CARD Act of 2009, all U.S. credit card issuers with more than 10,000 credit card accounts must submit their agreements to the Fed every quarter as well as post them on their own company websites and make them available to account holders who request them. The Fed launched the site on May 24, 2010.

Every credit card agreement posted on the Fed's website was evaluated by two readability programs that were purchased from Micro Power & Light Co., a Dallas software development company.

The first program prepped the content by deleting special characters, incomplete sentences, tables and any special coding that may have been in the text versions of the files. The second program scored the text using three different well-established readability formulas: the Flesch reading ease, Flesch-Kincaid grade level and FOG (Frequency of Gobbledygook) indexes. Only one of the formulas, the widely used FOG score, was used in determining the best and worst credit card agreements and average reading level of a U.S. credit card agreement.

We removed Spanish contracts that were included in the Fed's database. In some instances, credit card issuers included both Spanish and English text in their contracts. We deleted any Spanish text and ran the readability formulas on the remaining English content.

Some files posted on the Fed's website were not credit card agreements but rather supplemental materials that often accompany agreements, such as tables listing interest and penalty rates and fees or information about credit card or disability insurance. In some instances, they were credit card applications. Those files were not scored for readability.

A small number of contracts were not evaluated for readability because the text versions of the agreements were either empty or did not reflect what was actually in the agreement.
Because the computer program that prepped the contracts removed headlines, incomplete sentences and special characters, it also removed words from credit card agreements. Therefore, the total word count reflected in the results is less than the word count derived by putting the contracts into a word processing program.

Source

How 10 Minutes Can Mean Millions!

2010-07-16T11:11:00.000-07:00

The United States 2010 Census was greatly advertised earlier in the year, but why is it so important? The Census is held in such regard because it disperses resources to states as accurately as possible, and underestimating the amount of people in the country can lead to an immense amount of extra unexpected expenses.

In 2000 alone, the Census underestimated the population by 1.8%, just under 14,000 people, but it cost an incredible amount of money to make that deficit up. About $51.6 million dollars!

Also, since the number of state representatives that a state is allowed to have is based on its population, if the amount of people is underestimated they could fore go representation.

In addition, estimating the amount of people in your local area helps disperse funds to build important structures such as hospitals, schools, and job training centers. It also assists in getting your town money for needed construction of items such as tunnels and bridges.

Though this process is of immense importance, several glitches had come up. For instance, American Indian tribes in Southern California claimed they didn’t receive Census forms and workers had not shown up in their area.

Another issue that had come up was the great amount of hesitation by low income families and illegal aliens. Many were unsure about opening their door to government workers, though the Census office stated that it simply wanted to count residents and didn't have ulterior motives.

In addition, residents were worried that impostors would try to act as Census workers and attempt find out personal information. In reference to this concern, the Census Bureau stated that its workers will have an issued I.D. with a Department of Commerce watermark and will only ask basic questions such as age, gender and ethnicity.

Overall these 10 questions are not only simple, but vital so your community can receive millions in government money, maybe save some of your own and make improvements to your neighborhood.

Share your thoughts and comments and tell any stories you may have about taking the Census or meeting with a Census worker.

Sources:
The Wall Street Journal
The 2010 Census website

How to Build $1000 in Savings - Painlessly.

2010-07-14T10:19:00.000-07:00

Maybe you already have a budget, a high credit score and a great mortgage rate. Still, it seems that money never goes as far as it should. If you want to start saving, consider the following:

Know yourself.

If money slips through your fingers like sand at the beach, understand the reasons why. You might be carrying a heavy debt load or recovering from an unexpected financial event like a major car repair or medical bill. On the other hand, you might just have a habit of buying what you want when you want it. Be honest with yourself as you examine your finances.

Pay yourself first.

This is a cliché because it works. If you save $20 from each weekly paycheck at 1% interest, you’ll have over $1,045 a year from now. Building a cash reserve is important. Taking it off the top ensures greater success at reaching this goal. Start small if you must. You can always increase the amount you save with each paycheck.

Put your money out of reach.

When building from zero, it’s a good idea at first to keep your money completely liquid so you can use it in a genuine emergency. Put your savings in an account where you can access it at any time. But don’t make that account too easy to reach. If you open a savings account with an on-line, out-of-town, FDIC-insured bank, you can still access your money without penalty. However, you will have to take extra steps, such as transferring funds electronically to your checking account and waiting several days for the transfer to complete.

Pocket change adds up.

Saving your spare change will probably not pay for your retirement in Tahiti. But it’s amazing how much you will have on hand if you put all of the coins in your pockets, wallet or purse into a jar at the end of each day. When the jar fills, roll the coins and deposit them in your bank account. Chances are good that you won’t miss the coins, and you’ll grow your savings a little.

Save money one day at a time.

If you’re an iced mocha latte addict, the prospect of never having your favorite coffee drink again could be too much. But if you decide to skip the fancy vente and make your own coffee just for today, you’ll have a few dollars to bank. Does money burn that proverbial hole in your pocket? Go ahead and deposit the $3 or $5 you’ve just saved, right now, today, before you spend it on something else. If you put $3 a day in a savings account at 1% interest, you’d have almost $1100 in a year. $5 a day would give you over $1800 a year from now. If you can’t sacrifice the latte, what else can you not buy, just for today, that would help you reach that savings goal?

Source

New rules on bank overdraft fees kick in

2010-07-01T05:17:00.000-07:00

New rules will end the infamous bank-fee gotcha that turns a debit-card swipe for a $5 latte into a $40 transaction.

Are free checking accounts the next to go? Perhaps.

A federal regulation that takes effect Thursday says customers must grant banks permission to cover debit card purchases and ATM withdrawals if they don't have enough money in their accounts. Banks typically charge $35 for overdraft protection, so overdrawing an account for a $5 cup of coffee brings the total tab to $40.

Big banks have collected billions in overdraft fees, but growing outrage over the practice led the Federal Reserve to crack down.

The new rules prohibit banks from automatically charging overdraft fees. Instead, you can decide whether you want to pay the $35, in which case you'll have to "opt in" for overdraft service.

If you don't want to risk a $35 fee, do nothing, and starting Aug. 15, your bank will simply decline transactions at the cash register or gas pump that would take your balance below zero.

Should you opt in? No way, said Jean Ann Fox of the Consumer Federation of America. If you overdraw your account on a $100 purchase, pay the $35 overdraft fee and have to make up the difference in two weeks, the annual percentage rate works out to 910 percent. In the case of the $40 cup of coffee, the interest rate is 18,200 percent.

"This is a spectacularly bad deal," Fox said. "Why would you agree to pay $35 to borrow $5 from the bank and have to pay it back in days?"

The new rules are good news for the small percentage of bank customers who routinely overdraw their accounts. A Federal Deposit Insurance Corp. study estimates that just 13 percent of depositors - mainly the young, the poor and the perpetually disorganized - pay 93 percent of all overdraft fees.

For those folks, the $40 cup of coffee or $40 hamburger no longer will come as a costly shock. Opt in, and they'll know what's coming; opt out and the transaction simply won't happen.

But the new rules could be bad news for the majority of bank customers. Faced with losing overdraft fees, banks are designing new fees to make up the gap.

Starting Thursday, Wells Fargo ends its free checking account, although there are ways to avoid monthly charges. San Francisco-based Wells Fargo owns Wachovia, the largest bank in Palm Beach County, and Wachovia will continue to offer free checking until at least 2011, when its Florida branches are scheduled to take on the Wells Fargo name, spokeswoman Kathy Harrison said.

Banks collect $24 billion a year in overdraft fees, the Consumer Federation of America estimates. A recent report by Sandler O'Neill + Partners said Bank of America could lose up to $2.2 billion in overdraft charges, while Wells Fargo could take a $1.1 billion hit. With that lucrative revenue stream reduced, it's not a stretch to think that banks will look for other ways to charge fees.

"I expect that they're out market-testing and experimenting with all sorts of options," said Jean Ann Fox of the Consumer Federation of America.

Dave Owen, head of Bank of America's payments business, acknowledges that the new regulations have shaken up the banking business.

"The entire industry is really having to step back and look at the business model," Owen said.

But Greg McBride, senior financial analyst at Bankrate.com in North Palm Beach, said many banks will wait to boost fees. It's unclear how many customers will opt in, and banks also want to know how legislation in Congress affects the fees banks make from debit card transactions.

"I don't think free checking has gone the way of the dinosaur yet," McBride said.

Consumer advocates say community banks and credit unions remain the best bet for consumers looking to minimize their banking fees.

In one dramatic shift, Bank of America, the second-largest bank in Palm Beach County, has scaled back its aggressive approach to overdraft fees. Charlotte, N.C.-based Bank of America once collected the most overdraft fees of any bank.

But in recent months, Bank of America has taken a more customer-friendly approach to overdrafts. Last year, it eliminated overdraft fees for transactions that left accounts overdrawn by less than $10. And this year, Bank of America said it will no longer authorize debit-card transactions that take an account balance into the red unless a customer has signed up for an overdraft protection service linked to another account.

Bank of America customer Robert Daniel is pleased at the change, although it comes too late to help him. Daniel, a 21-year-old Florida State University student from West Palm Beach, unwittingly overdrew his Bank of America checking account 11 times last year. He swiped his debit card for small purchases, including $35 for gas and $5 at Burger King.

Daniel was charged $385 in overdraft fees, plus $10 to transfer money from his savings account to his checking account to cover the overdrafts.
When Bank of America employees refused to reverse the charges, he stood outside a West Palm Beach branch with a sign protesting the overdraft policy.

He welcomes the new rules.

"I was very surprised and happy to hear that," Daniel said. "I'm assuming it's going to draw a big chunk of the banks' income away from them."

Source

Kids Saving Early – A Grandfather’s View

2010-06-15T09:43:00.000-07:00

The long-term key to improving America’s overall financial literacy quotient is to get to the kids. What’s important is to establish good financial behaviors early because those behaviors will carry over to adulthood. As a father of four and grandfather of nine, I’ve seen it work firsthand. Start early, insist on consistency in behaviors, and set a good example. Monitor your saver’s progress and celebrate the successes. With that mantra, here’s what how to get started:

•When kids can walk, it’s time to start saving. Establish the first behavior of saving by teaching your child to drop coins in a piggy bank or a jar. Explain the meaning of the word save.

•Show the money. Periodically, show the child that consistent saving adds up by regularly tallying up your savings.

•Take it to the bank. Make a ceremony of taking the child to the bank to deposit the jar of money. Teach them that the bank will give them money (interest) to “store their money.”

•If there is an allowance, it’s time to budget by putting savings first. No matter what the size of the allowance is, break it down between what they can spend, and what they have to save. Note: this may be your first financial “negotiation” with your child – start with saving 50%, and settle for 25%.

•The first large purchase. As your child ages, he or she will inevitably want to spend their entire savings – on one item. The answer is “no.” Modify budget into more line items – discretionary spending, mandatory saving, and “saving for the large item.” This is where the behavior of “buying within means” is established.

•“But, I want it now…” This may be the time to deve lop a new financial concept – borrowing money. That’s okay as long as the rules are set, and the “borrower” adheres to them. This is where the behavior of “borrowing within means” is established.

•“Can I have a credit card?” Response: No, it’s too early. We’re sticking to the plan above. However, let me teach you about credit cards – after the “eye roll,” stick to your game plan.

•“My friends have credit and debit cards.” Response: I’m happy for them. We’re sticking to our financial plan, and here’s why.

In my own experience, my children were grateful for instilling financial responsibility at a young age. Start early, consistency, monitor progress, and celebrate success – I’m convinced that’s the formula for increasing America’s financial literacy quotient many times over. Get to the kids.

Proud Grandfather,

Carl George

Carl George is the Senior Executive Partner at Clifton Gunderson LLP, a national CPA firm; past Chairman of the National CPA Financial Literacy Commission of the AICPA, www.360financialliteracy.org and www.feedthepig.org; and the proud grandfather of 9.

Source

12 Important Financial Concepts You Didn’t Learn in School

2010-06-03T08:51:00.000-07:00

Critics of the public school system have long lamented the lack of personal finance education in our classrooms. As many have pointed out, today’s high schools rarely teach even the basics. Consequently, students often graduate high school unable to so much as balance a checkbook or compare two different loans. Yet as embarrassing as this is, our schools also neglect a whole slew of more advanced financial concepts. While some are covered in various college courses, the only group of students likely to have encountered all of them are MBAs. In reality, they apply to everyone, not just business owners. If you are not an MBA or are simply curious to learn about some of the important financial concepts overlooked in school, consider the following.

Probability
Probability seeks to measure how likely it is that various things will happen and express those odds as a percentage. A coin toss, for instance, has a probability of 50% because it is equally likely that it will flip heads or tails. Banks use probability (albeit in more complicated ways) to determine the odds that borrowers of various creditworthiness will repay their loans and, thus, what interest rate to charge. While many believe that banks charge high or low interest out of “greed” or “favoritism”, it is ultimately a total numbers game. If probability shows that borrowers with your characteristics pay on time, you pay less. If it shows the opposite, you pay more. Understanding probability can put such decisions into perspective and empower you to make better ones yourself.

Statistics
While probability is about predictions, statistics is about measurement. Generally speaking, there are two kinds of statistics: descriptive and inferential. Descriptive statistics simply reflect the inarguable facts of the data. The heights, weights, genders and eye color of a thousand randomly assembled people would be examples of descriptive statistics. Inferential statistics go a step further by attempting to draw conclusions from the descriptive ones. An example of an inferential statistic might be a theory about how “80% of all people living in this area have brown eyes.” Statistics, like probability, is used across the economy and shapes billions of financial decisions large and small every single day.

Sunk Costs
A sunk cost is an amount of money that has already been spent and cannot be recovered. Cars purchased, years spent in careers and portions of meals already consumed are all sunk costs. Unfortunately, because human beings are naturally risk-averse, we are often slow to acknowledge sunk costs and change course. We frequently hear friends or relatives justify staying at jobs they despise because of all the time they’ve worked there. Others will actually force themselves to choke down disgusting restaurant food to “get their money’s worth.” But all they are doing is throwing good money after bad by prolonging the original mistake. Instead, true financial rationality demands that you emotionlessly cut your losses as soon as a sunk cost is recognized. Time and money already spent (and which you cannot get back) should not affect what you decide to do next.

Expected Value
Expected Value is a specific and immensely useful application of probability. In simplest terms, it is an expression of the long-term average odds that something will happen. You get it by taking an outcome and multiplying it by the probability that it will happen. The number you wind up with is the Expected Value of that action. While this might sound like abstruse financial jargon, it is anything but. Everyone who buys lottery tickets, for instance, is either unaware of or ignoring the concept of Expected Value. Based on the calculations just described, forking over $10 for buys you a piece of paper with an Expected Value of $5. Seen from this perspective, buying lottery tickets actually reduces your net worth. An index fund, on the other hand, is an example of something with a positive Expected Value that could rationally be expected to grow your net worth.

Mental Accounting
Another financial mistake we often make is classifying money into arbitrary but seemingly meaningful categories. We hear investors tell us, for example, what they do with “money they can afford to lose.” As kids, many of us probably spoke eagerly about our plans for birthday money that we “weren’t expecting anyway.” A Washington Post article described a study where 86% of people bought a $10 movie ticket after losing $10 on a train, but only 46% bought a second $10 ticket after losing the original. This is a fallacy known as mental accounting. In all the above examples, people are making apples-to-oranges comparisons out of identical things. There is no dividing line between money that matters and money you can afford to lose, or between money you worked hard for and money you weren’t expecting. It is all the same resource: money. Economically speaking, you should make these decisions based solely on Expected Value rather than imaginary categories.

Time Value of Money
The time value of money states that money today is worth more than money tomorrow. Money already in your possession can be put into investments or savings and earn interest. Investopedia offers an apt example:

Assuming a 5% interest rate, $100 invested today will be worth $105 in one year ($100 multiplied by 1.05). Conversely, $100 received one year from now is only worth $95.24 today ($100 divided by 1.05), assuming a 5% interest rate.

Keep this in mind when someone makes an offer for your house or other property. A seller who offers you “more money later than he can give you today” and tries to make it sound attractive could, in truth, be offering less than today’s “smaller” amount. The old saying “get the fast buck, not the last buck” nicely captures the time value of money.

Risk Management
Astonishing numbers of people have little or no appreciation of true risk management. Mention the risks of any activity and you are likely to hear dismissive responses like “there’s risk in everything” or “you could get killed crossing the street.” Frankly, this is a lazy and ignorant view of what risk truly is. It is not enough to simply assume that risk is present equally in everything so why bother thinking about it. Each activity entails different types of risks and different probabilities that they will materialize. You need to quantify any serious risks that are encountered. The decision of where to buy a home, for instance, should be made partially based on historical property values and the likelihood and they will rise or fall. For extremely important choices, it might help to construct a formal decision tree that visually displays possible outcomes and their Expected Values.

Leverage
Borrowing money (also known as leverage) is another common source of confusion among the public. Besides attributing high or low interest rates to greed and favoritism, many people fail to comprehend the basic, underlying mechanics of borrowing. The idea of interest can prove especially confusing. Yet, it is crucial to understand what is actually happening when you borrow money. Take the easy example of a car loan. While your new car might cost, say, $28,000, borrowing the full purchase price costs far more than that. Using a cost of loan calculator, we find that borrowing $28,000 at 6% interest and repaying it over 5 years costs $32,479 when all is said and done.

Compound Interest
If you’ve ever wondered why financial experts are always telling people to take advantage of tax-deferred 401(k) and IRA accounts, the mystery is solved. Compound interest is the reason. If you put $10,000 into an index fund earning 6% interest and do nothing, it will be worth $57,434.91 in thirty years. That’s because the interest on your original $10,000 is itself earning interest with each passing year. Of course, the returns are even sweeter if you continue putting money in, but the power of compound interest should now be clear. Furthermore, with a Roth IRA, all of this accumulated growth is untouched by income taxes.

Inflation
You might have heard various analysts and experts claim that some low rate of return (say, 1% or 2%) “doesn’t even beat inflation.” Inflation refers to a gradual, yearly rise in the prices of everything in the economy. Because the government prints more money each year, it loses its buying power at a rate of between 2%-4% annually. In other words, $500 today can buy more goods and services than it will buy a year or two from now. According to the Heritage Foundation, Social Security provides low or even negative returns to various segments of society because of inflation. When making financial decisions (such as evaluating investment performance or yearly income) you must always determine the inflation-adjusted, or “real” rate of return. Neglecting inflation creates a rosier picture, but is nothing more than an exercise in self-delusion.

Opportunity Cost
Opportunity cost refers to the value of your foregone options. The opportunity cost of attending college, for instance, might be the income you could earn at a job if you weren’t in school. The opportunity cost of going to a party might be a lower grade on the test because you didn’t study. Every choice in life, big and small, entails opportunity costs. Nor are they always this obvious. Many “do it yourself” projects are actually a waste of time and/or money when opportunity cost is considered. Let’s say it takes you six hours to do your own taxes, during which you cannot work on your business. If six hours working on the business would have produced more than the cost of an accountant, doing it yourself was a waste. To view it any other way is sheer mental accounting. While you did not physically hand money over, the greater sum of business income you sacrificed means you should have.

Risk vs. Reward
One of the most basic ideas underlying many of these concepts is that risk and reward are positively correlated. There is relatively little payoff involved when an activity is extremely safe. As the old saying goes, “if it were easy, everyone would do it.” This is why savings accounts (backed by federal deposit insurance) pay only 1%-2% interest while stocks (which can crash in a heartbeat) routinely pay 5%-10% or more. It is also why working a low-intensity desk job for fifty years is a lot less lucrative than owning an actively managed business. One is relatively sure thing, while the other contains much uncertainty and risk.

Source

TAXES

2010-05-14T07:56:00.001-07:00

Track down your income-tax refund
Everyone could use extra cash, and it's nice to know when the check will arrive.
Ingredients:
• Internet access.
• Your tax return.
Instructions:
• Visit the Internal Revenue Service's online "Where's My Refund?" tool.
• Enter your Social Security number, filing status and the amount of the refund shown on your return.
• The site will confirm whether your return was received and processed, and estimate when your refund will be mailed or deposited into your bank account.
Total time: three minutes.

Adjust your tax withholding to get a bigger paycheck
As nice as a tax refund may be, it means you gave Uncle Sam an interest-free loan. It's better to keep that money by reducing the taxes withheld from your paycheck.
Ingredients:
• Internet access.
• Your 2009 tax return.
• Your latest pay stub.
• Form W-4 from the IRS (.pdf file) or your employer's personnel department.
Instructions:
• Start with Kiplinger's tax withholding calculator to determine how much you might add to your paycheck.
• Go to the IRS withholding calculator.
• Fill in your filing status, copy information from your 2009 tax return to fill in tax credit information (such as the number of child credits you can claim for your kids under age 17), and key in information from your latest pay stub about your current income and tax withholding. You'll also have to make some educated guesses about your other income and expenses for 2010.
• The calculator tells you how many allowances to claim.
• Fill out a new Form W-4, and submit it to your employer.
Total time: up to 15 minutes, depending on the complexity of your tax return.
Source

The price of paying off the debt you hate most

2010-05-12T09:11:00.000-07:00

When and how to repay by emotion
Let's face it, there is debt and there is debt you loathe. Sometimes choosing to pay off the most hated balance first -- even when it's not costing as much as other obligations -- can bring much needed emotional relief.

Does it make sense, though? Concentrating on the most expensive account before others saves money, but exorcising debt demons can be logical, too.

Not all debt types carry the same psychological weight. Some bills can feel more urgent when linked to particularly unpleasant events, such as medical procedures, divorce, fraud or betrayal.

For example, when Steve Replin, a Denver-based attorney, wrote a book, he hired a public relations professional who turned out to be nothing more than a money trap.

"When the bill got to $25,000, which is the balance that I've now got on my credit card, I couldn't take it anymore and just fired her," says Replin. "I'm exceedingly angry, mostly at myself, for being such a gullible person and believing in what was said. So each month, when I make the payment on this account, I see this person in front of me and visualize the same thing coming around to her."

Shareef Defrawi, a project manager from Houston, is also dealing with an unjust debt, and it makes him cringe each time he thinks of it. Defrawi rented a car for a friend, who never returned the vehicle. "He literally skipped town. I fought the matter long and hard, but to no avail. I got stuck with a $16,000 public collection on my credit report and a $4,000 charge-off from my bank." Though the balance is small compared to his other loans, it takes precedence. "It carries a lot of baggage -- feelings of regret, stupidity, embarrassment, gullibility and the like. When the debt is finally paid off, I really think I'll get the closure I need as I'll be able to put the whole episode behind me for good."

Student loans are common sources of frustration because of their fixed rates and long payment schedule. "I hate my Sallie Mae student loan debt of $22,000," says Todd Havens, a marketing director from Los Angeles. It's not the people who work there, he assures, but "the company itself certainly qualifies for one of Dante's fiery inner rings." His anger stems from the loan's locked-in interest rates of 8 percent. "The $4.78 a day of interest feels like it's coming straight out of my veins. I fantasize about the day when that balance is gone. I feel like I'm married to the mob. Concrete shoes and all."

All this anger can shift a debt's priority.

Prioritizing debt repayment by emotion

Payment order isn't an issue when consumers have only one debt, but when they have numerous types, experts find that people often sort them in similar ways. Patsy Marine, a Taduch, Ky.-based credit counselor for Clearpoint Counseling Service, says her cash-pressed clients tend to feel more inclined to repay money owed to relatives, while home loan arrearage takes a back seat. Why? "For mortgages, they know help is out there, but family members are more important," says Marine.

Indianapolis-based blogger Adam Baker from Manvsdebt.com agrees with Marine's observations, reporting that individuals tend to rank loans from family or friends most highly, then credit cards. Car or house debts are last unless there is negative emotion attached to them.

Conversely, some obligations plummet in the payoff lineup if the creditor is considered mean or difficult. "Through the years, I've heard from counselors that people often put the bill from the collectors who have treated them the worst at the bottom of the list," says Gail Cunningham, vice president of public relations for the National Foundation for Credit Counseling.

All ways to pay are valid, says Baker, though he does believe that by ridding the most disliked accounts first, "you'll be building momentum." He calls this method the "debt tsunami," and it's pretty simple: "Just list out every debt and then pay them off by which has the most emotional impact on you." He claims it makes sense for most people, especially for "any personality type where emotions have an effect on your motivations."

Baker and his wife used the debt tsunami to repay over $18,000 in consumer debt and have begun applying it to their student loans. "By really becoming intimate with the source of your debts, you can work to pay off the one that really drives you nuts first."

Personal finance author and radio personality Dave Ramsey's "snowball plan" is a popular repayment process (over 1 million families have so far attended his Financial Peace University course, where the plan is taught) that also takes psychology into consideration. With this technique, debtors position accounts by balance amount, and then pay the smallest debts first while making minimum payments to the others. He urges people to be unconcerned with interest rates or terms unless two accounts have similar payoffs, in which case the one with the higher interest rate takes the lead. Ramsey contends that consumers enjoy swift satisfaction when little debts drop off, and thus they are more likely to stay with the plan.

Matthew Russell, a financial planner for MTR Financial Services in Kingwood, Texas, is an advocate of Ramsey's approach and uses it in his practice. "To me, that is the right way of paying off debt. The emotional boost received by the client when they pay that first card off and can scratch it off their list is worth far more than spending more time paying off debt using the 'highest interest rate to lowest' approach. I think all of my clients, or those whom I've helped on a pro bono basis, will agree it was a better way to pay down their debt."

Still, even with strong reactions to certain debts, it's important to prioritize according to what can happen if you don't pay, and put essential needs first. "You have to keep the roof over your head and the car payment going so you can get to work," says Marine. "Don't always give in to your emotions!"

Combining logic with emotion

Straight mathematics supports paying accounts down in order of most to least expensive, but it's possible to merge methods. You may want to concentrate on the creditor that's most bothersome, and then transition into a more commonsense alignment of organizing your debt payoff plan according to interest rates.

Sentiment doesn't always translate into an illogical order of repayment. Sometimes a strong negative response to a debt leads to a financially logical arrangement. For example, Edward van Eckert, a marketing executive from Metuchen, N.J., says, "my experience is that the credit companies I hate are those charging the highest rates, so emotions and practicality meet."

Scott Crawford, CEO of DebtGoal, an online debt acceleration program, says his company started out emphasizing the financial advantage of whittling down balances with an algorithm that calculates the fastest way to pay down debt. He found, however, that many borrowers prefer to work on their debt emotionally as well. Therefore, DebtGoal's calculator allows people to select a strictly mathematical method or switch accounts around according to personal preference.

So if the hatred you feel for a debt is keeping you up at night, feel free to attack it with abandon. It may not be costing you more than others financially, but sleep and peace are precious commodities too. In the end, says Crawford, any repayment approach can be effective, but "what really matters is staying motivated and seeing progress. Just find and plan and stick with it."

Source

44 Ways to Ruin Your Financial Life By Age 30

2010-05-05T07:39:00.000-07:00

It was not until I reached 30 that I started to turn my own financial life around. Unfortunately, by then, the damage was done. In retrospect, I often knew the decisions I was making were not-so-smart, but I did them anyway because I could always “pay it off later” or “just save more money when I’m older.” One of the cruel facts of life is that it gets harder when you get older.

Hopefully, by sharing a few of these bad money moves, it will prevent others from doing the same. And don’t worry, if you are over 30 and still doing these things, it is never too late to start living frugal.

Is Tuition Cheaper at the School of Hard Knocks?

1. Take out three times as much in student loans as your first year’s salary. I’m all for following your passions, but if your passion only pays $35,000 a year, please reconsider borrowing $100k to get the required degree. Here’s more from a couple that owed more than $100,000 in student loans.

2. Trash your college enemies on Facebook and Twitter. Might be funny now, but your future boss probably won’t see the humor in it. Remember, the Web is an open book, and down the line things you say online can and will be used against you.

3. Trash yourself on Facebook and Twitter. The picture of you half-naked partying on the beach at Spring Break will probably get you a few more followers, but remember that future boss?

4. Go to school out of state because you like the football team. I included this one because I did it. Well, sort of. See, I thought I could walk-on for my favorite school’s football team, forgoing scholarship opportunities in-state. It was a dumb move, and one I paid for during the remainder of my 20s.

5. Just get a degree…in anything. Don’t “just get a degree” for the sake of getting a degree. Learn something, and prepare to apply it in the real world.

Work to Live, Don’t Live to Work

6. Accept a job you hate right out of school because it pays a lot. This ties in with student loans. Many graduates are so saddled with debt, they have little choice than to go after the biggest salary, even if it isn’t the best opportunity.

7. Form a partnership with three old fraternity brothers from college. It’s been said the only type of ship that won’t float is a partner-ship. Let the one with the most capital start the business and hire the other two. Much cleaner, and if the business fails, you can all walk away and still be friends.

8. Borrow thousands to start a new business. Entrepreneurship is the spirit that built this country, and I’m all for it. However, consider saving and starting up with cash.

9. Accept your first job offer without negotiating. A little wiggle room often exists in salary ranges, schedule flexibility, paid days off, etc, but you have to ask.

10. Spend $2,000 on your new corporate wardrobe before getting your first check. One of the classic mistakes by new earners. As with most things, it pays to pay with cash. Buy a couple nice outfits for interviews and your first day on the job, but beyond that, make do with what you’ve got until you get your first check or two. Then pay cash to add a new outfit to your wardrobe over time.

The Borrower is Slave to the Lender

11. Cosign a car loan for your best friend. I no longer borrow money to buy cars. And I especially wouldn’t borrow money to buy someone else a car, which is essentially what you do when cosigning a car loan. As a cosigner, you are on the hook if they default. And if they need a cosigner, there’s a good chance they will.

12. Give up credit virginity for a free t-shirt. When I was in college, I signed up for a Discover Card before a football game because they were giving away free t-shirts. Dumb. My running joke is that t-shirt probably cost me $500 in interest charges over the next few years.

13. Borrow money from your parents. What kid wants to borrow money from their parents? Not only does it change the relationship between parents and kids, it makes it tough to declare financial independence when we constantly have to turn to the First National Bank of Mom and Dad.

14. Pay off a credit card with a credit card, without closing one of them. Performing a balance transfer from a particularly high-rate to a low-interest rate credit card makes sense in the short run. That is, unless you fail to close the old credit card. If you leave both accounts open, chances are you’ll eventually wind up with double the debt.

Cars Don’t Make You Any Sexier

15. Buy a car because you can “afford the payments.” Ever wonder why car dealers advertisers the cost of a car in monthly payments? It’s because writing $32,000 in window paint isn’t quite as catchy as $379 a month (for 60 months with a balloon payment at the end). See, it just doesn’t have the same ring to it, does it?

16. Drive like and idiot. Driving like an idiot can cost you big time. Makes it hard to save money on car insurance when you are collecting traffic tickets right and left. Not to mention the hit you’ll take on gas mileage.

17. Refuse to buy a used car because you don’t want someone else’s problem. This tired saying keeps coming up when a discussion on used cars takes place. A car transforms from new to used the second it leaves the car lot. A well-maintained, previously owned car, can save you thousands of dollars over a new model.

18. Buy a new car because it gets better gas mileage. Gasoline prices continue to climb, but it’s not an excuse to go and take out a loan on a new car with better gas mileage. In most cases, you’d have to drive thousands and thousands of miles to break even. Buy a car for better gas mileage if you already planned to buy another car, and you are concerned about the environment and your wallet.

19. Don’t shop for car insurance. No seriously; take the first offer you get. Don’t shop around for a better car insurance quote from places like esurance.com. Yeah, that will save you tons of money.

Insurance? That’s for Old People

20. Go without health insurance–even catastrophic insurance. When you are in your 20s, the last thing you are thinking about is getting sick. After all, you were just a teenager a few short years ago and the feeling of invincibility hasn’t quite worn off. Don’t take the risk. At a minimum, look into a health savings account or similar high-deductible plan that will cover you in the event of a major illness.

21. Turn down cheap life insurance because you don’t have dependents. If you die without dependents, someone may not be counting on your income, but it will still cost money to settle your final expenses. Don’t transfer that burden to your parents, or a close friend, because you were too cheap to pay a small premium for affordable life insurance.

22. Refuse to find disability insurance. After all, you are only 26, right? Who becomes disabled at 26? A lot of people. Illness, accidents and other bad things happen to young people, who are more likely to survive them disabled than die. Protect your new salary by finding disability insurance.

23. Don’t go to the doctor. Again, here’s that invincibility thing. At a minimum, follow your physician’s guidelines on annual or semiannual check ups. A little preventive medicine can go a long way towards extending your life and saving you money.

Going to the Chapel and I’m Going…to Need a Truck Load of Money

24. Marry the wrong person for the wrong reasons. Choice of spouse weighs heavily on future success or failure. They say opposites attract, but I’m not sure they stay together forever. Find someone who shares your dreams on subjects that matter most to you.

25. Spend six months of salary on an engagement ring. If you have to spend half a year’s salary on an engagement ring to impress someone you might want to think twice about your choice of partner. I’ve always thought one month’s salary was a good rule of thumb, and of course, pay cash. Further reading: Save Money on a Diamond Ring

26. Blow thousands you don’t have on a wedding. If you are debt free, and are marrying a partner who is debt free, stick to a reasonable wedding and avoid putting yourselves, or your parents, deep in debt.

27. Refuse to accept your partner’s debt. When you marry, you become one. So your spouse’s debts are now your debts. Remove “mine” and “yours” from your vocabulary when discussing debt and marriage.

Home, Bitter Sweet Home

28. Buy a house without an emergency fund. Something interesting happens you buy your first home. Right away, your name is put on a list of those who should be tested, financially. I’m being a little sarcastic here, but it does seem like the minute you stretch to buy a home without proper savings, something will break causing you to immediately reach for the credit cards.

29. Share a mortgage with your boyfriend/girlfriend. I’m not being a prude here. Even if you decide to share living quarters with someone before marriage, please avoid sharing a mortgage (or lease) with them. If you split up, and chances are you probably will, the financial impact is a lot messier with joint ownership.

30. Sign a long-term lease based on the salary you think you will earn out of college. Wait until the ink has dried on that first job offer letter before signing a lease (or a mortgage) for your first place. Better yet, wait six months to make sure you really can afford the payment, else you risk being house-poor right out of the gate.

31. Don’t put any money down on that new mortgage. As many have discovered the hard way, homes can lose value. If you finance 100% of your new home, you have zero breathing room should your home lose value and you be forced to sell. Buying a new home is not cheap, but try to buy yourself a little breathing room by putting 10-20% down (close to 20% is best to avoid paying private mortgage insurance).

32. Stretch to get into a new home because it is a good investment. Repeat after me – my home is not an investment. We need to break this thinking that all young people should buy homes because they are a great investment. Yes, they can increase in value, but like all investments, they can lose value, too. The difference is, when your shares of Apple go down, you aren’t putting the roof over your head at risk.

Kids Are Expensive, and Worth Every Penny!

33. Don’t get out of debt before having a baby. Any parent will tell you, things are difficult before kids are even more difficult after kids. Getting out of debt is no exception, so if possible, try to become debt free before having kids. Having said that, I believe children are a blessing, so don’t put off having kids just because you are in debt.

34. Offer to pay expenses for your grown children. This move alone will guarantee that they will never grow up.

35. Wait until kids are 16 to start saving for college. Who even thinks about saving for college until they are 16, right? Problem is, tuition increases and inflation become factors from the moment your kids are born. You have to save diligently to stay ahead of them both.

36. Give your six year-old a cell phone. My oldest is almost 11 years-old. After four years of begging, I’m starting to come around on the idea of her having a cell phone to take to sleep overs, sporting events, etc. (situations where we may need to contact her or vice versa). Her phone will be a real boring one with the only features being strong parental controls.

Investing in Your Future

37. Open an online brokerage account to trade single stocks before funding a 401 because you want to get rich quick. This point really doesn’t need further explanation. In my own experience, I remember opening an online brokerage account to trade single stocks in the late 90s because even people my age were making thousands in their sleep. Problem was, I got in at the top, was poorly diversified, and worst yet, I wasn’t contributing to my retirement account at the time. Talk about needing to re-prioritize!

38. Pass on a Roth IRA. Opening a Roth IRA at an early age may just be the single best retirement strategy for young people. I know you can’t get the earnings until your 59 1/2, but when you do, they are tax free! And don’t forget, in the even of a real crisis, you can withdraw Roth IRA contributions at any time, tax and penalty free.
39. Dump all extra savings into company stock. One of my first jobs was for Lowe’s (the home improvement store). I worked with a guy in his fifties who dumped 100% of his earnings into company stock (through the employee stock purchase plan and an outside brokerage account). He obsessed over the stock price because mild swings cost him thousands of dollars from day to day. I just couldn’t live like that.

40. Get your investing advice from late-night infomercials. Who hasn’t been tempted to flip houses, sell MonaVie, or stuff envelopes for hundreds of dollars a month? The problem is, for every legitimate opportunity, there are 1,000 scams.

Shopping, Food and Rock and Roll

41. Shop for clothes with labels that impress your “friends.” It’s time to be a grown up. Impressing your friends with clothes is something we did in high school.

42. Eat out every single meal. Eating out has its benefits. No preparation, no clean up, more social interaction, etc. However, it will clean out your wallet a lot faster than cooking at home. If you are a horrible cook, spend the difference on a few cooking classes.

43. Buy a television that consumes 80% of the square footage of your apartment’s living room. Some plasma televisions cost more than the car I currently drive. Unless you sit 30 feet from your television in a giant living room in a McMansion, it’s hard to justify a television worth more than your vehicle.

44. Don’t set up a monthly budget. One of my high school teachers had a sign hanging in her room that read, “If you fail to plan, you plan to fail.” Nothing could be truer when it comes to managing your money. Get over your fear of creating a personal budget and spend a little time telling your money where to go.

So there you have it; 44 ways to ruin your financial future. Hopefully, you’ll avoid most of these along the way, but even if you don’t, winning with money over the long term is about finding discipline and financial maturity. And that maturity can come at any age – 22 or 42. The advantage of finding that maturity at 22 is that by 42 you could easily reach financial independence, and have limitless opportunities ahead of you.

Source

Schwab survey says kids with chores become money smart

2010-04-27T06:45:00.001-07:00

Here's an excuse for getting your house clean while being altruistic: Give your kids chores, and watch them learn the value of money. At least that's what the results of a recent survey seem to prove.

The 2010 Charles Schwab Families & Money survey found that 53% of parents whose children had four or more regular chores while growing up considered their now young adult children to be "very financially responsible," compared to 46% of parents whose children had one to three regular chores, and 39% of parents whose children had no chores. In other words, the more chores they did, the better the kids were with money -- at least in the parents' eyes. I bet anyone who ever did chores for an allowance or had a job as a kid can remember how it helped them learn the meaning of a dollar.

Of course, you could just tell your kids to do their chores because that's how it's done in a family and everyone has to pull their own weight. But more than likely, money delivers a fiscal responsibility message.

When my daughter turned 5 almost a year ago, my wife and I gave her some nightly chores to do before going to bed. We had a chore chart and promised to take her to the toy store for a gift when they were completed in a month. It worked for awhile, but then waned. Some chores got done, but laziness on my part quickly set in, and we stopped filling out the chart. Her toys are still scattered all over the living room, but this Schwab study gives me new hope to start again.

I've tried teaching her about money by opening a savings account so she can deposit some of the money that grandparents send her, but I don't think she yet gets the concept. She also has a college savings account we contribute to each month, and I will someday explain that to her.

For now, her financial savvy comes from a Dairy Queen gift card from grandma and quoting Mr. Krabs. That's about to change with four regular chores. We'll start with a nightly toy pickup.

Source

Treasury Bonds

2010-04-16T07:37:00.000-07:00

Treasury bonds pay a fixed rate of interest every six months until they mature. They are issued in a term of 30 years.
The price and yield of a Treasury bond are determined at auction. The price may be greater than, less than, or equal to the face value of the bond.
Two types of bids are accepted:
• With a noncompetitive bid, you agree to accept the interest rate determined at auction. With this bid, you are guaranteed to receive the bond you want, and in the full amount you want.
• With a competitive bid, you specify the yield you are willing to accept. Your bid may be: 1) accepted in the full amount you want if your bid is equal to or less than the yield determined at auction, 2) accepted in less than the full amount you want if your bid is equal to the high yield, or 3) rejected if the yield you specify is higher than the yield set at auction.
Converting Paper Treasury Bonds to Electronic: Treasury bonds in paper form can be converted to electronic form.
Key Facts
• The yield on a bond is determined at auction.
• Bonds are sold in increments of $100. The minimum purchase is $100.
• You can hold a Treasury bond until it matures or sell it before it matures.
• In a single auction, an investor can buy up to $5 million in bonds by non-competitive bidding or up to 35% of the initial offering amount by competitive bidding.
Source

How to track down your tax refund

2010-04-08T07:47:00.001-07:00

You can call, but the IRS would rather you checked online.

OK, where’s my refund? I filed early, as the IRS requested, but I still haven’t gotten my check.

If you’re in this situation, what do you do?

You can start by calling 1-800-829-1954. If you filed more than four weeks ago, call 1-800-829-4477.
But, the IRS really doesn’t want to talk to you. They’d prefer you go to www.irs.gov and click on “Where’s My Refund.” If you e-file, you can get refund information 72 hours after the IRS acknowledges receipt of your return. If you file a paper return, the IRS doesn’t post refund information until three to four weeks after the return has been mailed.

When checking the status of your refund, have a copy of your return in front of you. To get personal refund information, you’ll need:
• Your Social Security number.
• Your filing status: single, joint, head of household or married filing separately.
• The exact dollar refund amount shown on your return.

The IRS online site will be able to:
• Acknowledge receipt of your return.
• Identify the mailing date or direct-deposit date of your refund.
• Note a failure to deliver because of an incorrect address, which can be corrected online.

If your return has been received, and the IRS has sent out a check, you can start a refund trace at the IRS site four weeks from the IRS mailing date.
Refunds are normally sent out weekly, on Fridays.
Source

Do Your Own Home Repairs and Save Money

2010-04-06T07:40:00.001-07:00

Whenever I’m asked for a powerful tip that will help others stretch their monthly budgets, I always have one suggestion: get your hands dirty. I’ve found over the years that I can get much more out of my budget if I am willing to do some work myself. This idea is particularly true with respect to home repairs.
The largest part of any home repair bill is almost always labor. Whether you have a hole in your wall that needs to be patched or a leaky toilet that needs to be repaired, you can bet that you will pay a pretty penny to have a professional do the work. Now, before you think I’m complaining about the fees charges by these professionals, I have to tell you that I think their time is very valuable. I also think, though, that you can tackle a lot of home repairs on your own.
Simple repairs can be done by virtually any homeowner. That hole in the wall I mentioned earlier can be easily fixed with a little spackle and paint. If you’re ready to tackle that running toilet, you’ll be happy to know that there are a wide variety of toilet repair kits available at any home improvement center. You can have these easy repairs done in an afternoon or two.
I know what you’re thinking; what should you do if you don’t have a clue how to fix a leaky toilet? Don’t worry. I am sure that you can find the answer. Check out a home repair book at your local library. Look for tips on the internet. Heck, you can even ask for tips from the employees at the home center you buy your supplies at.
As your confidence grows, you’ll find that you’re willing to tackle more and more home repair jobs. I used to be incredibly intimidated, for instance, by the idea of touching anything that used electricity. Then, I decided to replace a faulty light fixture in my dining room. I did a lot of research and was very careful about safety (I checked the wires five times before I actually touched them to make sure that they weren’t “hot”), but eventually I got the project done. Now there is one more type of home repair project I can handle on my own.
Finally, it’s okay to recognize that there are still some things that you should call the professionals in to fix. When our air conditioner isn’t working, I don’t hesitate to call the repair guys. They understand this piece of equipment much better than I do. However, I am very happy to know that the savings I’ve created in my other home repair projects will help me to afford these guys when I really need them.
Source

Slash your electric bill 6 easy ways

2010-04-05T14:05:00.000-07:00

So what if you weren't especially eco-conscious before glaring electric bills landed in your mailbox? Now you can act the concerned terrestrial by minding the green in your wallet and saving energy in the bargain.

Spending hundreds to save pennies generally doesn't make sense, but if you're already in the market for a new appliance, or even light bulbs, consider the Web your first energy-savings tool.

Climate control
A typical household uses the bulk of its energy for heating and cooling -- up to 44% of the utility bill, according to the DOE's Energy Efficiency and Renewable Energy Network (EREN).

Programmable thermostats can reduce energy wasted heating or cooling a house when no one is home or everyone's asleep.

According to the Home Energy Saver site, Energy Star programmable thermostats can save as much as 20% to 30% on your heating or cooling costs by allowing for multiple daily settings and automatically adjusting when the outside temperature changes. Participating manufacturers include Honeywell, Hunter Fan and Smart Systems International. Unfortunately, it's not easy to search for programmable thermostats by Energy Star status. Instead, keep an eye out for those with features typical of the Energy Star thermostats: temperature recovery systems, two programs and four temperature settings.

Ceiling fans: Moving air tends to feel cooler, allowing for higher summertime thermostat settings. According to EREN, the effect is equivalent to lowering the air temperature by about 4 F (2 C), and using less energy than air conditioners in doing so.

Lighting, cooking and other appliances
The next-biggest household energy use after climate control is for lighting and appliances. Not counting the fridge, these comprise about 33% of a typical utility bill.

Compact fluorescent lamps (CFL's): CFL's use up to 75% less energy than standard incandescent bulbs and last up to 10 times longer, according to Home Energy Saver. This is good, because they're also more expensive initially.
Check your local utility for ideas.

Energy-efficient appliances: Using the Energy Star site as a starting point.
Among household appliances, the refrigerator is likely your biggest energy consumer, especially if it's more than 15 years old. It can account for up to 9% of your energy costs alone. Again, use the Energy Star site for a list of energy-efficient models if you're looking to replace yours.

Water heating
Heating water is the third-biggest home-energy cost and typically accounts for 14%-20% of your energy bill.

Hot water jackets: Because hot water jackets usually sell for $10 to $20, shipping charges for buying them online can easily increase their cost by 50% or more. It's best to use the Web to find offline deals in this case.

Finally, if you haven't yet bought a home, or you're considering buying a new one, you can plan for energy savings from the ground up with an energy-efficient homebuilding project. Check the DOE's Building America and the EPA sites to find projects near you.
Source

Tips for First Time Savers

2010-04-05T13:05:00.000-07:00

1. Switch your bank accounts to a bank that respects you. You shouldn’t be spending your hard-earned money on maintenance fees – you also should be earning some serious interest on your checking and savings accounts.
2. Turn off the television. One big way to save money is to watch less television. There are a lot of financial benefits to this: less exposure to guilt-inducing ads, more time to focus on other things in life, less electrical use, and so on. It’s great to unwind in the evening, but seek another hobby to do that.
3. Turn a critical eye to your “collections.” Most people collect something – what do you collect? Is it something that consistently brings you joy? Or is it something that you just do out of habit at this point? Does the collection itself have value? Could you perhaps “trim the fat” from this collection by getting rid of duplicates or getting rid of the items you no longer use?
4. Sign up for every free customer rewards program you can. Even if you rarely shop at that place, having a rewards card for that place will eventually net you some coupons and discounts.
5. Make your own gifts instead of buying stuff from the store. You can make food mixes, candles, bread, cookies, soap, and all kinds of other things at home quite easily and inexpensively. These make spectacular gifts for others because they involve your homemade touch, plus quite often they’re consumable, meaning they don’t wind up filling someone’s closet with junk.
6. Master the thirty day rule. Whenever you’re considering making an unnecessary purchase, wait thirty days and then ask yourself if you still want that item. Quite often, you’ll find that the urge to buy has passed and you’ll have saved yourself some money by simply waiting.
7. Write a list before you go shopping – and stick to it. One should never go into a store without a strong idea of what one will be buying while in there. Make a careful plan of what you’ll buy before you go, then stick strictly to that list when you go to the store.
8. Instead of throwing out some damaged clothing, repair it instead. Don’t toss out a shirt because of a broken button – sew a new one on with some closely-matched thread. Don’t toss out pants because of a hole in them – put in a patch of some sort and save them for times when you’re working around the house.
9. Drink more water. Not only does drinking plenty of water have great health benefits, water drinking has financial benefits, too. Drink a big glass of water before each meal, and not only will you digest it better, you won’t eat as much, saving on the ol’ food bill. You’ll also find yourself feeling a bit better as you begin to get adequately hydrated (most Americans are perpetually somewhat dehydrated).
10. Be diligent about turning off lights before you leave. If you spend one minute turning off lights before a two hour trip, that’s the equivalent of earning $50 an hour. That’s some impressive savings, particularly if you do it before longer trips. The key is to use less energy, particularly when you’re not using the device.
Source

5 ways to profit as food prices rise

2010-04-02T07:18:00.000-07:00

People have to eat. As the economy recovers, expect demand for food to grow and prices of meats, grains and dairy products to rise.
Goldman Sachs has identified food inflation one of its top nine investing themes for 2010. The agricultural sector will benefit broadly from this trend, and we have identified five stocks that will thrive in such an environment.
Let's break it down by the numbers. The U.S. Department of Agriculture forecasts that food prices will rise 2.5% to 3.5% this year, up from a 1.8% increase in 2009.
Fertile investing territory
Producers of potash, a key fertilizer, should prosper mightily from food inflation. Goldman analysts expect farmers to boost potash consumption significantly from weak 2009 levels. If potash volume declined again this year, it would be only the second time since 1960 that volume had dropped for three consecutive years, Goldman analysts say.
Need the seed
Once you have the fertilizer, you need the seeds. No company in the seed business is more dominant (or more despised) than Monsanto (MON, news, msgs). The St. Louis Company faces an antitrust investigation by the Justice Department and, as a top producer of genetically engineered seeds, has drawn fire from activists about its business practices and the long-term effects of its products on the food supply. Politics aside, UBS analyst Don Carson expects Monsanto to gain market share in the growing market for corn seeds through 2012.
Green from a grocer
A moderate amount of food inflation tends to be good for grocers, and one of the best-positioned supermarket chains is Safeway (SWY, news, msgs).
The company, which has more than 1,700 stores in the U.S. and Canada, slashed costs aggressively in 2009. The belt-tightening means Safeway's profits should improve this year and that the Pleasanton, Calif., company should have more money to return to investors in the form of dividends and share buybacks.
Source

Ten Ways to Make Car Ownership Easier

2010-03-29T10:54:00.000-07:00

A well-maintained car is a safe car, a top priority for car owners. It just so happens that a well-maintained vehicle can also save you money in the long run—whether it’s because you avoid costly repairs or because you can resell your car for more money. Either way, keeping up with preventative care and gaining some basic knowledge about your car will make your life much easier.
Here are the ten ways to do it:

10. Listen to your car.

No matter how embarrassing it may be to stand in front of a perfect stranger and make funny noises, it is worth it. Effectively relaying what you’ve experienced in your vehicle to your mechanic is an essential tool to keeping it on the road. The more your service center knows about the problem, the more likely they are to fix it right the first time and for less labor costs. Be sure to tell the mechanic as much as you can about the problem, including details like speed, what direction you are turning, the temperature outside and the time of day. It may sound strange, but all of those details can help your mechanic assess the situation and set it right without expensive exploratory work.

9. Schedule checkups twice a year with a mechanic you trust.

Regardless of how well you think you know your vehicle, a well-trained, trustworthy mechanic can spot things ahead of time that you might miss. Taking the time to schedule a check up with a good mechanic twice a year may seem obsessive, but preventative maintenance at the hands of a qualified professional is cheap insurance. Also, keep all the documentation; being able to provide a potential buyer with all of your service records is a major buying incentive

8. Flush the engine and top it up with mileage-appropriate fluids.

As your vehicle ages, carbon deposits and grime form inside of the engine no matter how well you maintain it. Using a product like Sea Foam engine restorer or BG44K as recommended on the packaging can keep buildup in check, improve fuel economy, and restore lost power. Also, be sure use the appropriate fluids for your vehicle’s age and use high-mileage oil as your car grows older.

7. Address minor problems early.

It’s easy to hear a strange noise in your vehicle and hope that it will go away. Unfortunately, there aren’t any cars out there that can heal themselves, at least not yet. Don’t put off minor maintenance or easy repair work. Doing so can lead to larger problems and larger repair bills in the end. Bite the bullet, fix what’s wrong and your car will last a lot longer.

6. Know what weather does to your car.

Do what you can to protect your car from all types of weather. While a garage is the ideal storage solution for your investment, other options exist to protect your vehicle from the sun’s UV rays, drastic temperature changes, water, and salt. Look into inexpensive options like car covers. Maintain the paint job by touching up any and all nicks and waxing your vehicle at least twice a year. Small steps like those can go a long way to preserve the appearance and head off rust before it can get started; saving you repair costs and keeping the resale value of your car high.

5. Drive gently.

While this may be the hardest thing to do for your car, it’s something that will pay huge dividends over the life of the vehicle. Adjusting your driving style to minimize the wear and tear on your ride cannot only give you a few more years of happy motoring, but it can also save you cash in repairs and replacement parts. It might take some of the fun out of driving, but accelerating gently from stop lights and stop signs, avoiding abrupt braking and completing smooth, non-aggressive turns all play a part in keeping your car in one piece, and save you gas too.

4. Read your owner’s manual.

That thick booklet with the sexy cover shot of your car looking all new and expensive is in the glove box for a reason. It likes to be read regularly! Be sure to refresh your memory as to when your next service is due because following the manufacturer’s suggested schedule for maintenance is the single most important thing you can do for your car—and yourself.

3. Check on your tires and brakes.

Since tires and brakes are what brings your car to a stop, it’s vital that these components are well maintained. Worn tires with little or no tread can become slick even in the best of conditions, but you can easily check if they need to be changed by performing the penny test.

Stick an upside down penny into the tread on both sides of the tire. If you can see the top of Lincoln’s head, it’s time to get a new set.Brake pads come with a handy squealer tab built into them, so you’ll hear a high-pitched whine coming from them when the pads are worn. Don’t wait too long before taking them into the shop though, if they wear down far enough you’ll compromise your safety and cause damage to the rotors—replacing those will set you back much more than the brake pads alone.

2. Keep up with fluid changes.

Checking on your vehicle’s fluids is paramount to its longevity. While some fluids like brake fluid, clutch fluid and coolant may not require attention as often as oil or transmission fluid, they’re just as important. Mark one day on your calendar each month to make sure all of your fluids are topped off. It’s quick, easy and can save you some serious repair dollars down the line. Of course, remember to change those fluids when your service manual requires it, too.

1. Stay Informed.

Many car owners carry on driving cars with defects because they haven’t been informed of the major recall affecting their vehicle. While most dealerships will track owners down if a recall is issued, you can’t rely on them alone. Have you moved or changed your phone number? Chances are they won’t be able to reach you. Give your local dealership a call and provide them with your latest contact information. You can also sign up for recall alerts. You’ll receive an email when a recall is issued that affects your particular make and model.

Source

Five Easy Tips to Help You Save Money

2010-03-26T09:17:00.000-07:00

The harder you think about a problem, the harder it can be to come up with solutions. If you're struggling with debt and trying to find ways to save money, sometimes you just can't slash your spending. It's everything you can do to pay the bills while feeding yourself and/or your family. So what can you do?

You can be more efficient in your spending. Be smart, keep your head on your shoulders, and you will find that it is much easier to save money than you might have previously thought. The best scenario is for you to figure out how and where you can be more efficient, but just in case you're thinking a little too hard and need some help, here are five helpful tips:

1) Watch Your Electricity Bill: Ever wondered why your electricity bill was so high? Well, the reason could be because you left items on for longer than you should have. You don't have to keep your computer monitor on once you leave the room, and you can save yourself a great deal of money if you turned it off whenever you are not using it. This should be applied to any electrical appliance: stereo systems, t.v.'s, lights, fans, etc... All of these items use up expensive electricity and can cut into your savings.

2) Don't Act Like a Kid Stuck in a Candy Store: Don't just buy things without thinking. If your lawnmower breaks down, don't just say "well, the thing is busted. Time to find a new one". Take the mower into the garage and strip it down to see if you can fix it yourself (there are plenty of do it yourself guides that can help you out there). Just because you have the option to buy something new doesn't mean that you should. It is often possible to fix things yourself. And if you can't do it on your own, then think about contacting a professional - it might actually be cheaper than buying a new item.

3) Make a List When You go Shopping: Everyone needs food and other basic necessities in order to survive. Most of us also like to have comforts such as cable, perfume, chocolate, cell phones, fancy shoes, and computers depending on our own personal likes and dislikes. However, everything has to be able to fit on your budget. In order to manage that, make a list for whenever you go shopping.

Building a list before you get to a store allows you to focus on what you really need without the distraction of nearby items that you find interesting and appealing. If you make a list and stick to it, then you will probably save yourself a great deal of money. People who do not make lists often end up spending more than they thought and driving themselves further into debt as a result.

4) Pay Attention to What and Where You Eat: Fast food joints and other places which supply read-to-eat-meals can be a big drain on your wallet. They have to make the prices reflect more than the basic cost of the item (say, a roasted chicken); they have to include things such as spices used, energy spent on cooking it, and the work involved in making it. You can save yourself money if you cook your own meals. Raw ingredients are less expensive, most cooking implements will last a long time if you take care of them, and the food that you make will usually be better tasting and healthier.

5) Do a "Financial Tune-Up": At least once a year, take a day off from work and other things to take a look at your finances. Look at your credit card rates, the interest on your savings, how much membership fees are costing you, and whether or not you can get a better deal on your insurance. Examine as many different things that you can, and if you find a more cost-effective way of doing something, then go for it! This can be a useful technique for optimizing your finances and cutting off memberships and other things that would otherwise drain your money.

If you have any suggestions or ideas of your own, feel free to comment. More information is always appreciated.

Related Links:

Frugal Dad Blog Post #1

Frugal Dad Blog Post #2

New York Times Article

The Simple Dollar Blog Post #1

The Simple Dollar Blog Post #2

Enjoy the Things that you Already Have

2010-03-26T07:59:00.000-07:00

Buying something new and pretty isn't always the answer. If you take good care of your stuff then you should be able to use them for years after you buy them. Items like books, a hunting rifle, and old magazines can save you thousands of dollars a year if you play your cards right.

But how can just having a hunting rifle or something else save you so much money? Well, it's actually very simple. All you have to do is make sure that you are getting your money's worth from the item. Saving money is easier than you think, and it can be applied to activities, hobbies, and old items within easy reach.

Consider these five examples:

Appliances: You don't always need the latest and greatest new appliance. If you have an item that works perfectly well, like a toaster oven, then don't replace it. Yeah, there might be a new model out there can toast your bread and put the butter or jam on it for you (that would be pretty cool though) but you don't need it. Save the money to spend on something else like plumbing or vehicle maintenance. Your toast will still come out perfectly fine and you will have solved another problem with money that you might have otherwise wasted.
Hunting: A good amount of my friends like to hunt. If you own a rifle and a license, hunting can be a great way to save money. Depending on the season, you can bring home enough meat to keep a family of four satisfied for over a month! If you already have all of the necessary equipment and training (and a buddy or two to tag along with you), then hunting can be a great way to save money on meat.
Books: People have been saying it for years, but books are great for saving money. Preferences don't matter - long novels like the Lord of the Rings are great for multiple read through's and "How To" guidebooks can help you learn new methods on saving money. Both can be found in your local library.
Video Games: You really don't have to buy video games all that often as long as you make purchases with an eye towards long term playability. Multiplayer games like Halo 3 and Call of Duty have been out for years and still have substantial followings. Puzzle games like Hexic and role playing games (RPG's) like Mass Effect 2 can also have a great replay value. Modern video games are expensive, so make sure that you are getting your money's worth before you buy it! Look up online reviews or talk to friends who already have the game. Or even better, check out the used game section; local video game stores often offer great deals on used games in order to help you save money.
Toys: Little kids are easily entertained. For the first few years of life little kids don't want fancy toys. If it's pretty, shiny, and indestructible (key word right there) then they will be all for it. Giving kids items like a stick of glue, scissors, and old magazines can also be a cheap and fun exercise (however, please be sure to keep a watchful eye on them just in case they get too carried away with the scissors or glue stick).

Don't be wasteful with your money; hold onto it and think before you spend. Think about whether you really need a new appliance or video game before you buy it. And brainstorm ideas to see if you can use something like a hunting rifle in order to save yourself some money. Be smart, sharp and on the ball. Saving money could well be easier than you previously thought.

Related Link:

The Simple Dollar, Blog Post

Earn $100 an hour -- clipping coupons

2010-03-23T07:24:00.000-07:00

You have to make time to visit a coupon Web site or collect the fliers from your mailbox, the supermarket or newspaper inserts. You then must sort through to find the ones you want, cut them out, stick them in your purse or wallet -- and remember to use them when you are at the cash register and trying to remember whether you bought everything on your shopping list and where you parked the car.
Average saving per coupon: just $1.44, according to the Inmar report.

But let's treat this low-finance topic for a moment the way we treat high finance. Let's subject it to the same math.
How long does it actually take to clip and use a coupon? Certainly the more you use, the less overall time you will spend per coupon, because so many of the costs -- getting fliers, sorting coupons and so on -- are generalized. Let's assume you spend a minute per coupon.
Saving $1.44 for a minute's effort is the equivalent of saving $14.40 for 10 minutes' work.
Hourly rate: $86.40.

Maybe this would be a good time to point out that the typical American working stiff -- anyone lucky enough to have a job right now -- climbs out of bed each morning, goes through the miseries of commuting and endures the daily grind at the workplace for about $20 an hour.
Furthermore, money saved with coupons comes with an additional benefit: Unlike money earned at work, it is tax-free. There are no payroll taxes, no federal or state income tax

The individual amounts of money may seem small, but they prove the adage about tiny acorns and mighty oaks. Someone who saves $25 a week will save more than $100 a month and $1,300 a year. Over a lifetime that can easily grow to $100,000 or more, even after accounting for inflation.
If motivation is an issue, the next time you find yourself facing a stack of coupon booklets and fliers, don't ask yourself if you can be bothered. Try asking yourself if you'd like to earn more than $100 an hour for a job you can do at home -- while sitting on the sofa watching TV.
Source

Down Payment Saving

2010-03-22T07:34:00.000-07:00

A down payment between 10 and 20% on your first home or condo is more important today than ever before. Following the sub-prime mortgage meltdown, lenders are more cautious with mortgage applications and borrowers have (hopefully) learned some lessons about risky home loans. Of course, socking away $20,000 or more isn’t easy, especially in your twenties. Here are five steps to take to save up your down payment in record time.
1. Determine how much you need, and when you need it. Tying an exact amount to your down payment savings goal will help keep you motivated and allow you to track your progress. Get a sense of how much your target home will cost, and try to save 20% for a down payment. Next, set a deadline. You may discover you need to save more each month than you thought, but that’s okay— these goals can push you to find extra ways to save you might otherwise overlook.
2. Create a separate savings account for your down payment. Whether you have $1 or $10,000 already saved for your down payment, stash it in a separate savings account to avoid tapping the money for other expenses. You can do this with a free online high yield savings account or simply by creating a new account designation at your current bank. Some local banks and credit unions even provide special accounts for first-time home buyers offering higher returns or rebates on mortgage closing costs.
3. Make your savings contributions automatic. Once you have determined how much you need to save each month, have that money automatically transferred to your down payment savings account every two weeks. Even better, most employers will deposit your paycheck into multiple accounts if you ask. If you never see the money you’re saving for a down payment, you can’t spend it.
4. Load up your traditional IRA. Traditional IRAs, which let you invest up to $5,000 in pre-tax dollars annually, provide an often-overlooked benefit for first-time homebuyers. You can withdraw up to $10,000 from your IRA for first-time homebuyer expenses (including your down payment) without paying the usual 10% early withdrawal penalty assessed for IRA withdrawals prior to age 59 1/2. Roth IRAs provide a similar benefit, but with some more complicated rules. With this benefit in mind, make contributing to an IRA a priority. You can save with pre-tax dollars, and stand to earn a better return on your cash than in a savings account.
5. Dump large monthly expenses. If you’re already managing to sock away a large sum each month to save for your down payment, you know that saving means sacrificing other things. As you get closer to your savings goal, make an effort to slash major monthly expenses like auto loans or credit card debt payments. Not only will this free up more cash to save, it will improve your debt-to-income ratio, an important factor in calculating your mortgage rates. Most importantly, a lean budget will put you in great shape on the day you finally become a homeowner.
Source

5 Steps to dig yourself out in 2010.

2010-03-16T06:46:00.000-07:00

Many Americans are facing real financial crises: lost jobs, lost homes, lost retirement savings.
Many others, though, are mired in financial messes completely of their own making. Despite relatively steady incomes, they:
• Live paycheck to paycheck.
• Carry credit card debt.
• Neglect their credit records.
• Fail to save anything for retirement.
• Put off the financial fixes they need to make, even if that fix is bankruptcy.
Denial is not a financial plan. And neither is fear, confusion, a government bailout or a lottery ticket. Many people, perhaps believing themselves powerless or that the goal is too far away, simply give up. And in doing so, they give up control of their financial destinies.
If that sounds like you, now is the time to take action. It's not only possible -- it's incredibly doable. Let's make 2010 the year you dig yourself out of your money morass, the year you begin to call your own shots.
The process is simpler than you might think it is.
To be better off than you are today, you don't need to save a million dollars, but you do need to save something. To be better off than you are today, you don't need to be debt-free -- only to stop digging your hole deeper. You don't need perfect credit or a year's income in the bank for rainy days.

1. Save $500
A pad of just $500 can start you on the right path, dramatically reduce your anxiety level and save you a fortune in bounced-check fees and finance charges. I'll show you how to find the money and how to spend it the right way.
2. Raise your credit scores to 740
Credit card companies have burned millions of their customers in the past couple of years by jacking up rates, lowering credit limits and canceling accounts.
Some people are taking the wrong lesson from this by swearing off credit entirely. In this world, you need to have and use credit to get the best rates and terms on important loans, such as a mortgage. But you don't have to carry debt to have good credit scores. I'll walk you through how to get your FICO scores to the gold-standard 740 level, so you're the one calling the shots with lenders.
3. Make a vow: No new debt
The first step in getting out of your debt hole is to stop digging. That's obvious. But the minute you commit to a no-new-debt lifestyle, you'll be blasted with temptations to do just that.
It's kind of like deciding to go on a diet -- fattening foods appear out of nowhere to tempt you. I'll talk about how to deal with those temptations and create a debt-proof lifestyle.
4. Expect to live until you're (at least) 80
The younger you are, the harder it is to imagine your future decrepitude, but the odds are very good that you'll live well past the usual retirement age. The earlier you get started saving for retirement, the less of your income you'll have to devote to the cause and the more flexibility you'll have in deciding not only when to quit work but how you'll spend your retirement years.
Even if you've procrastinated, though, not all is lost. I'll show you how even a few bucks a week can make all the difference.
5. Change your financial destiny
If you've tried to fix your finances in the past and failed, the problem may be that you didn't think big enough. Sometimes what you really need is to take a bold step. You may have to go back to school, change careers, move to a new city or start a business. I'll talk about how to assess your current situation and decide whether it's time to take a leap.
Source

13 Tax Deductions You Can't Ignore

2010-03-16T06:25:00.000-07:00

Before tackling your tax return, brush up on this baker's dozen of deductions that could cut your tax bill.
1. If you weren't covered by an employer's retirement plan in 2009, you can deduct your contribution in full.
 If you were covered by an employer plan, you can only take a deduction if your adjusted gross income was below $65,000 and $109,000 for married couples.
 If your spouse was covered but you weren't, you can take a deduction if your combined adjusted gross income was below $176,000.
 If you were 50 years old on the last day of 2009, you can contribute up to $6,000.
2. Self-employed retirement plans. If you work for yourself, you can open a Simplified Employee Pension-IRA before April 15 and deduct your contribution on your 2009 return. SEP IRAs are an easy way to create your own retirement plan, and they can allow much higher contributions than traditional IRAs.
3. Mortgage interest. You can deduct interest paid on your primary mortgage as well as home equity loans and lines of credit. In general, you may deduct interest on up to $1 million of primary mortgage debt and up to $100,000 of home equity balances.
4. State and local taxes. Feeling like every single government entity is after your money? Fortunately, the Federal government cuts you a little slack, letting you deduct property and income taxes imposed by state and local governments. If you bought a new car on or after Feb. 17, you can also deduct the state and local sales and excise taxes you paid.
5. Sales tax. If you paid little state income tax — or live in a state that doesn’t tax income at all — you can choose to deduct sales tax instead. And you don't need receipts — simply calculate an assumed amount using an IRS table or online calculator.
6. Charitable gifts. Donations to charity can ease your tax burden, but only if you have the right documentation. Cash contributions — regardless of the amount — require a cancelled check or dated receipt. Any contribution of $250 or more requires a written acknowledgement from the charity. Non-cash contributions valued more than $5,000 generally require an appraisal.
7. Student loan interest. Some or all of interest on loans taken out to pay qualified higher education expenses is generally deductible if your adjusted gross income is less than $75,000 ($150,000 if you're married and file a joint return). You may also be eligible for the Hope or Lifetime Learning tax credit (See IRS Publication 970).
8. Medical and dental costs. The government sets a high hurdle for these expenses: You can only deduct them if they exceed 7.5% of your adjusted gross income.
9. Health insurance. Self-employed taxpayers get a big break on one of their biggest financial headaches. In general, they can deduct all of their health insurance premiums.
10. Health savings accounts. If you were covered by a high-deductible health insurance plan in 2009, you can contribute up to $5,950 to a health savings account ($3,000 if it only covered yourself). Contributions are deductible and withdrawals for qualified medical expenses are tax-free. Similar to IRAs, you have until April 15 to contribute for last year.
11. Job-related moving expenses. If you moved to take a new job, you can deduct your expenses if you pass these two IRS tests:
 Your new job must be at least 50 miles farther from your old home than your old job was. If you didn't have a previous job, your new one must be at least 50 miles from your old home. If you're in the military with PCS orders, you do not have to meet these rules.
 If you're an employee, you must work full-time for at least 39 weeks during the 12 months after you arrive in the general area of your new job. If you're self-employed, you have to work full-time for at least 39 weeks during the first 12 months and 78 weeks during the first 24 months.
12. Guard and Reserve travel expenses. If you traveled more than 100 miles to attend a drill and spent the night, you can deduct your lodging expenses, half the cost of your meals, and 55 cents per mile for travel. You can also deduct tolls and parking fees.
13. Out-of-pocket teacher expenses. Teachers, aides, counselors and principals — kindergarten through 12th grade — can deduct up to $250 for classroom supplies purchased in 2009.
Source

Save Money on Gas

2010-03-05T09:05:00.000-08:00

If you live in the U.S. and are a working adult, then you probably own a vehicle of some kind of gas powered vehicle. And as the price for gas over the past few years has shown us, owning a gas fueled car can get pretty expensive at times. So why not try to save some money on it?

There are a multitude of technical sites on the web that you can trawl through to learn specific techniques and methods on how to save gas, but here are a few generic tricks that you can use no matter the situation.

Brake the Right Way: Cars use more gas in order to accelerate; it takes more power to make an object move than it does to make it keep moving. If you brake and accelerate often then you are wasting gas. If you keep the car on a smooth and steady speed, then you will be saving yourself over $0.20 per mile.
Use the Cruise Control if you Have it: Using the cruise control will keep your car going an even rate of speed (a.k.a., it will save you money). Be sure to keep an eye on the road around when you use the cruise control though.
Keep the Car Light: Heavy vehicles use up more gas. More weight in a vehicle equals more energy (gas) required to make that vehicle move. If you keep equipment and items (such as bicycles, packed boxes, coolers, etc...) out of your car whenever they aren't needed, then you will save yourself money.
If You're Stuck, Turn the Car Off: As long as the engine is on your vehicle is using gas. If you are stuck at a train track or you are waiting for someone and are stopped, turn the engine off - otherwise you will be wasting your money. According to one of the linked sites posted below, the rule of thumb for this is 30 seconds. If you will be in one spot for more than 30 seconds, then you will save money on gas by turning the vehicles engine off.
Drive Slower: The two words that many drivers hate to hear. Driving fast may get you to your destination faster, but after a certain point you begin to use more gas to reach it then you would if you slowed down. The going estimate for this point is is roughly 60 mph. After you go over 60 mph, the amount of gas that your car consumes increases at a much higher rate.
Use Overdrive Gears: If you have an automatic transmission, then you should use the overdrive gear. It will save you money on gas and reduce engine wear by lowering your RPM.
Shift Manually: If you have a manual transmission then you should shift up early and shift down late when you are driving (something that any stick driver should be aware of). You will also be able to manually decide which gear you should be in for the specific situation. Learn each gears appropriate situation and you will be set.

Sites of Interest:

A "How To Save Money on Gas" guide, the following link was written by an intelligent and self-named "leadfoot" on how to save gas. Leadfoot's Guide.

United States Department of Energy Website. This site contains fuel saving tips, nationwide gas prices, gas mileage tips, and more. Check out their fuel efficiency calculator.

Save on your Grocery Bill

2010-02-22T09:00:00.000-08:00

According the Bureau of Labor Statistics, in 2008 the average American family spent $6,443 on food. To put that number in perspective, that “average” family consists of 2.5 people with an income of $63,563. So from these numbers we can surmise that our average family spends about 10% of their income on food. • Cook from scratch. The more prepared the food, the more it costs.
• Generics. For things like flour, sugar, salt, bleach or virtually dozens of other items, the only discernible difference is price.
• Lists. Writing down what you need
• Stoop and bend. Smart merchants place the most profitable items at eye level and on end-caps. Stoop, bend and look around for the best values.
• Coupons. These days’ online coupon sites have made them easier to find and use.
• Warehouse stores.
• Salvage grocery stores. These are harder to find, but if you happen to live near one, the savings are huge here’s a list of them by state http://www.moneytalksnews.com/2009/04/16/salvaged-grocery-store-list/

MORE TIPS

• Don’t shop hungry. It makes you buy more.
• Shop alone. Kids, and spouses who act like kids, will often whine, cajole, or otherwise try to influence you into impulse buys. Leave ‘em at home.
• Always cook too much, and then freeze. That saves the time you need to be able to cook from scratch.
• Substitute cheaper ingredients for more expensive ones.
• Weigh pre-weighed produce. Use the handy scales in the produce department to weigh pre-weighed bags. For example, if you’re buying a 10-pound bag of potatoes, weigh them. Some will be 9 1/2 pounds, but some might be 10 1/2 for the same price.
• Repackage. Put small quantities of leftover sour cream or other perishables in smaller containers; they’ll last longer. Cookies, crackers, and the like will also last longer if stored in glass jars.
• Grate savings. You pay more to have someone else grate your cheese for you. You’ll also save by cutting up whole chickens, slicing your own pickles, slicing meat for cold cuts, and using a blender or rolling pin to make your own bread crumbs.
• Save on starch. Fancy boil-in-bag or flavored rice’s routinely cost 10 times the amount of the old-fashioned kind. All it takes to make rice is the ability to boil water. Bags of smaller potatoes are often half the cost per pound of big baking potatoes. Bake two little ones instead of one big one. Your stomach won’t notice.
• Save on protein. The simple proteins found in beans are better for you and obviously much cheaper than the complex ones in meat, fish and poultry. In other words, eat less meat.
• Milk your budget. Milk about to expire? Freeze it. You can thaw it out and use it later. Same with things that might be rotting in your vegetable drawer: onions, parsley, tomatoes, garlic. Not only will freezing keep it from rotting, it will keep it from stinking.
• Butter up the cheese. Lightly buttering the edge of semi-hard cheese makes it less likely to form mold or dry out.
• Extend yourself. Adding cottage cheese to hamburger will enhance the flavor, add protein, and allow you to increase servings from four to six per pound.
• New life for old bread. Leftover bread and rolls can be toasted in a toaster oven and chopped up into croutons.
• Alter your recipes. Nobody will sue you if you alter your recipes a little.
• Make your own salad dressing. Mix 1/2 cup of vinegar, 1 1/2 teaspoons of salt, 1/4 teaspoon of pepper, 1/2 teaspoon of dry mustard, 1 minced garlic clove and 1 cup of salad oil. Voila! Delicious salad dressing at a fraction of the cost.
• Grow your own. Next time you buy fresh garlic, save the four inner cloves. Plant them about 1/2 inches deep. In less than six months, you’ll be in garlic city. There are many other herbs and vegetables that you can grow yourself.
• Don’t buy water. Ever. The fact that people pay for water is further proof that enough advertising can make people do just about anything. If you really have concerns about water quality, buy a cheap water filter and fill your own bottles.
• Pick it yourself. If you live near an area that grows fruit, vegetables or produce, go to a pick-it-yourself farm for bargain prices, fresh air, and a reminder of why you work in town.
• Keep lettuce longer. Wash your lettuce thoroughly, then go outside and swing it around in a pillowcase to get rid of the excess water (and to amuse your neighbors). When you’re done, put it in an airtight container and it will last at least two weeks in your refrigerator.
Source

Saving Money as an Ethical Decision

2010-02-19T06:44:00.000-08:00

Why should you save money? It should be because it is a better financial and ethical choice.

Many people understand that saving money can help them out in the long run but still choose not to do so. They purposely make the decision to spend money on non-necessary things that they cannot afford; like customized car parts, manicures, DVDs, and expensive gifts for their friends. But why?

Well, if you want an exact answer to that question, I would suggest asking a psychiatrist. People smarter than you and I have debated about this sort of thing in politics and academia for years. Media figures like Rush Limbaugh, Stephen Colbert, John Stuart, and Bill O'Reilley have regular radio broadcast and televised segments on this topic. And local news networks have frequent and popular segments in which they try to 'conclusively' deal with it. Saying why people should (but do not) save money is not an easy subject to deal with, and people have been trying to do so since the time of the Greek philosopher Aristotle!

If you are someone who is working on a tight budget, if you have a history of buying things that cost more than you can afford, or are in a similarly troubled situation, then something that you need to keep in mind is that you are making an ethical decision that affects not only you but the people around you as well. It is rare for you, the person in debt, to be the only one affected.

But as to why choosing to save or not save money is an ethical decision, well, the reason is simple: your actions in that area can have a negative or positive impact on both your life and the lives of those around you. When you are in a situation where you could possibly hurt someone (yourself or another person) you need to be aware that the decisions that you make arealways important.

You need to be aware that by not saving money you are not only opening yourself to financial and personal risk; you are also potentially opening up your loved ones as well. If your car unexpectedly breaks down or you get ill and need special medical treatment, unless you have high insurance or a high paying job, then chances are that you are now in big trouble financially. Getting loans to pay for these things are difficult and risky, and asking friends and family to 'bail' you out (while necessary at times) is not fair to them.

If you choose to save your money then you are more likely to avoid those types of situations. You would probably be able to pay for emergency situations like an illness and a job loss would not be life threatening after only a week. You would be reducing the safety risk to both yourself and those around you. You would be protecting both them and yourself from critical and dangerous situations. In short, you would be making a good ethical choice.

Of course, this is not to say that you shouldn't buy the occaisional small gift for yourself or others - not by a long shot. Small gifts (and the occasional large one) are good things so long as you can afford them! If buying someone a gift, a meal, or something else will send you into debt or potentially cause you or someone whom you know any sort of harm, then do not do it. It is a simple and basic rule of thumb that you can apply to your everyday life. You don't have to be a rocket scientist in order to figure this out; in fact, the only thing that you need is a head on your shoulders that is capable of doing more than just saying 2+2=4.

Saving money can keep you out of debt. It is for things like emergency funds, retirement plans, gifts for the people that you love, and sending your kids off to college. When you save money, you are making an ethical choice to help both yourself and the people around you. You are making the better decision.

If you choose to not save money and instead spend it freely on non-essential things, well, then you are also making an ethical choice. You are not a bad person for having chosen to do so - but you could be a better one. Don't make it so that someone has to come and 'bail' you out of trouble. Save the money yourself and be your own provider and savior.

Saving a Little Everyday

2010-02-05T12:30:00.000-08:00

1. "A penny saved is a penny earned."

2. Win the lottery, just keep playing 4-7-10-14-36-51

3. Drive more efficiently. Driving at 55 miles per hour, instead of 70, will save you the equivalent of roughly 70 cents a gallon, which could easily put hundreds of dollars a year into your pocket.

4. Before you start your car, get your kids seated and belted and do all your other preparations for driving. This will save you a few minutes' worth of gasoline usage every day.

5. Don’t idle your car; if you know you will have to wait more than a couple of minutes, turn it off. For more tips, see fueleconomy.gov.

6. Set your home's thermostat to 65 degrees in winter and wear a sweater.

7. Before you go to bed, set it down to 60 degrees and use a second blanket if needed.

8. In summer, set the air conditioning at 70 degrees. Adjusting your home thermostat wisely could save hundreds of dollars annually.

9. If it's feasible, walking or biking, instead of driving or paying for a bus or train, could save you $5 a day, $25 a week, $1,250 a year.

10. Don't buy lunch every day. Instead, make and take your lunch to work. Better yet, pull together a brown-bag club with a few friends, with each of you bringing your own food plus something to share. You could save another $1,250 a year..

11. With cigarette prices at roughly $5 a pack, someone who smokes two packs a day could burn through $70 a week, or more than $3,600 per year.

12. Rent DVDs free from the library.

13. Put your refrigerator on ice. Before you open the refrigerator, pause for a moment to see if you can move several things in or out at once. Every time you open the door of the fridge, you make it work harder.

14. Don't shop on an empty stomach.

15. Pay with cash or checks when possible.

Source

Are Humans Programmed to Fail Financially?

2010-01-29T06:10:00.000-08:00

Technology is changing the world and personal finance at an unbelievable rate.

Remember when tracking your spending involved pen and paper, now we have website that does it automatically. It is to the point where we don’t have to do anything, but continue spending as we normally do.

But even with all this technology many people are still finding it hard to maintain a budget, track spending, and automate their savings.

I was talking to a friend last night about using a site like Mint.com to help him manage his money. I asked why he doesn’t take advantage of something that does all the work for you and is completely free.

His reply was:

I’m too lazy

Too LAZY! Too lazy to do what? I couldn’t believe it.

I spent the entire night (12AM- 5AM) thinking about what he said. It is amazing to me how human beings, the smartest creatures on the planet can be so stupid. My mother once told me “ lazy people work twice as hard” and he is living proof.

Managing your personal finances can change your life for the better.

I have never heard of someone going broke from practicing financial management. Have you? In spite of all the technology out there, many people refuse to get their act together.

Why? I can’t figure it out.

Is the desire to buy things you don’t need that strong? Are advertisements that powerful? Are we brainwashed (just throwing that one out there)?

If I told you that personal financial planning is a surefire way to retire early with enough savings to live the life you want, would you practice it then?

Well, it is and it has a very high success rate. That is the reason you hear so many people preaching it.

If you punch your information into an Excel spread sheet or the Mint website and go over what you did with your money at the end of the month, most of you would want to kick yourselves for not doing it sooner.

The technology is there, all we have to do is use it. Don’t make laziness be the reason you are still working at 70.

Source

Credit Card Fees and The Haiti Relief Effort

2010-01-15T07:31:00.001-08:00

The disaster in Haiti has made many people open up their wallets to provide whatever aid that they can for the people in need. In fact, so many people have done so that even the major credit card companies are changing their traditional tune of "if it's a transaction, put a fee on it" to "if it's for Haiti, wave the fee" for donations made using their services.

A fact that many people are not aware of is that credit companies (such as Visa and MasterCard) usually do place a fee or two on any transaction made with cards issued by them - even if it goes to non profit groups or charity. According to the Huffington Post, profits from doing so are estimated to reach $250 annually for banks and credit card companies. Only once before have the companies ever waved the fees for charity donations, and that was for the Tsunami of 2004.

But despite the loss of hundreds of millions of dollars, the companies have pledged to do two things.

They will no longer place fees on donations made to specific and pre-approved charities.
They will donate any money that they previously made from the fees placed on donations before the fees were removed.

If you were worried that your donated money would wind up in the hands of some business, rather than going to those who need it the most, then you can relax a little. Not only have the credit card companies made the two pledges, but they have also provided a list of charities for whom donation fees are being waved. Moreover, these organizations are all safe to donate to; they will not siphon your money off for their own ends.

While I would recommend that you check with your service provider before you donate to a charity (the list is being updated on a daily basis) here are a few charities that the major credit companies have approved:

For MasterCard American Issued Cardholders: American Red Cross, AmeriCares, Unicef, Save the Children and CARE U.S.A.

For American Express Cardholders: Any organization listed on the U.S. AID website, which has been linked here.

For Visa Cardholders: American Red Cross, AmeriCares, CARE USA, Direct Relief International, Habitat for Humanity, International Rescue Committee, Mercy Corps, Oxfam America, Save the Children, US Fund for UNICEF, and World Vision.

Discover Cardholders: Has waved fees for donations to the American Red Cross, and it will match up to $1 million in "Cashback Bonus" donations made to the Haiti effort.

I hope that the information enclosed above helps you to send aid and relief to those who need it. Keep in mind that no matter how hard things get, there is always a way for things to get worse. Save money, help others out, and if you need help yourself, then learn where and how you can get it. In the meantime, if you want to help those hit hard by this natural disaster, you now have many options open to you.

Related Links:

Visa Charity Website List

Discover Card Haiti Relief Web Page

New York Times article on credit card fees and charity donations: Article

Huffington Post article on credit card fees and charity donations: Article

PR Newswire article on Visa: Article

PR Newswire article on MasterCard: Article

Earthquake Relief for Haiti

2010-01-14T06:58:00.000-08:00

In an effort to help those who have been affected by the earthquake in Haiti, and their continuing tragedies, Credit Card Management Services, Inc. d.b.a Debthelper.com is now a collection center to help those in need.

Your gift will help distribute relief supplies to children and families impacted by the earthquake and aftershocks in Haiti.

Anything you are willing to provide will be greatly appreciated and invaluable to the families you will be helping. The immediate need is dry foods such as rice, beans; can foods, tents and army type cots, blankets and medical supplies.

Where: 4611 Okeechobee Blvd. Suite 114 WPB, FL 33417

Time: Mon – Fri: 9:00am – 8pm; Sat: 12:00pm – 5:00pm

Information: (561) 472-8000

Debthelper.com

3 Tips to Snag the Appliance Rebate

2010-01-12T05:47:00.000-08:00

By Jennifer Acosta Scott • Bankrate.com

The government's Cash for Clunkers auto rebate program is over, but the appliance rebate starting early this year could give Americans some cash back on other purchases.

The Energy Star Appliance Rebate program, passed last February as part of the American Recovery and Reinvestment Act, will give rebates to consumers who replace certain home appliances with energy-efficient models. The program was designed to stimulate the sagging economy as well as conserve energy by taking inefficient appliances out of commission, says Christina Kielich, a spokeswoman for the U.S. Department of Energy, the agency administering the program.

"It was a triple goal," Kielich says. "To increase energy efficiency, give a break to consumers in this economy and give a boost to the appliance industry."

However, unlike the Cash for Clunkers program, the rules for the appliance rebate vary depending on where you live. The $300 million allocated for the program was parceled out to U.S. states, five territories and the District of Columbia based on population, Kielich says, and each state has its own plan for handing out the money.

For example, in Minnesota, clothes washers, dishwashers, freezers and refrigerators qualify for rebates. However, Indiana residents can only get cash back on HVAC systems, says Eric Burch, director of policy and outreach for the Indiana Office of Energy Development.

"Our thought was that if you're going to pick one appliance in your home that is going to have a significant impact in terms of increased energy efficiency, ... it's going to be heating and cooling," Burch says.

The amounts for the appliance rebate also vary. In Texas, a new freezer will net you a rebate of $180, but in Minnesota, you'll only receive $100. Both states offer additional money if you recycle your old model.

So, when can you start shopping for your new bargain-priced appliance? That, too, depends on your location. Most of the states and territories stipulate that rebates are not retroactive, so it's important to hold off on your purchase until your state's official start date. Some states, such as Florida, Texas and Tennessee, are holding their programs until April to coincide with Earth Day, according to their appliance rebate Web sites. Others are hoping to have them up and running in January.

"We think the vouchers will start going out after Jan. 1," says Ann Grim, an operational analyst with the Oregon Department of Energy. Other states planning early launches include Connecticut, New Jersey and Wisconsin.

It's a good idea to bear in mind these three tips when seeking the rebate:

Get the details. Each state may have its own start dates and sets of qualifying appliances while some states have additional restrictions. For example, Alaska's rebate Web site says it is limiting it to the disabled while Oregon is limiting it to low-income residents only, Grim says.

Some states, such as Oklahoma, require you to provide proof that you recycled the old appliance or removed it from your home. "The appliance will need to be removed from the premises," says Kylah McNabb, program manager for the Oklahoma Department of Commerce. "We encourage recycling, but we do not specifically require it. It shouldn't be a problem for most consumers. Few retailers do not offer haul-away when you purchase a new appliance."

Still other states, like Illinois, stipulate that rebate-eligible appliances must be purchased from a participating retailer, according to the state's Web site. If you know the requirements before you start shopping, you'll save yourself from mistakes when filing for the rebate.

Don't dally. Most states are handing out rebates only until their federal funds are depleted, and those who wait too long will be out of luck. "Once they start the program, they have a finite amount of money they can spend," Kielich says. "Run, don't walk, and get your rebate while it's still available." Some states, like Missouri and Texas, plan to allow consumers to "reserve" rebates online before they buy.

Look into other offers. Some states, such as California, will allow consumers to "stack" their federal appliance rebate on rebates from local utility companies if the appliance meets the criteria of both programs. For information on local rebates, check the Database of State Incentives for Renewables and Efficiency.

Kielich also points out that some appliances eligible for state rebates, like certain HVAC systems, also may be eligible for federal tax credits for 30 percent of the purchase price. A list of appliances eligible for tax credits can be found at www.energystar.gov. "It doesn't normally include household appliances, but there are a few things that could qualify," she says.

Source

Disappearing Money Syndrome: Seven Tips to Stop Being Nice

2010-01-08T11:31:00.000-08:00

By: Green Sherpa

This week I discovered what a nice person I am. I am nice to the exclusion of financially aware. What did I spend that $7.90 on? I was scratching my head looking through daily expenses, when I remembered my affliction: Nice Person with Disappearing Money Syndrome.

I bought my colleague a coffee and didn’t ask to be repaid. But it’s only $7.90, right? Until the end of the month when you realize you spent $500 on dining out, and “it’s my treat!” accounted for $200 of that.

If you’re a pleaser like me, you have to watch yourself. This month, my wanting to be generous cost me $125. Meanwhile, my family is in the money crunch along with everyone else in the country right now. So I made a pact with myself to notice when I’m doing something to please, and to snap my generosity back into alignment with A) my budget, and B) how I want to be living my life.

I assembled seven tips for pleasers who want to practice nipping the nice. There are other, more financially solvent ways to be generous besides springing for coffee for everyone in the office. Just ask yourself what it’s costing. Then nip it.

•Know when your need to please is dictating something not in your budget.
•No one has a line item that says take care of everyone around you.
•Ask to be repaid if you go to get coffee or go to lunch with someone. Make it a new habit. It makes a fundamental difference on how you provide for yourself.
•Set clear boundaries about what you’re spending money on. Resist temptation to spend outside them.
•Give yourself permission to NOT treat.
•Go through a whole month of not treating others, and see how it affects your bottom line.
•Notice how many times you actually were doing it, or how many times someone was treating you.
•For one month take responsibility to pay for yourself.
•Take note of how much you have, and how often you are spending on others.
•Account for it. It may be fine to be a super-pleaser It may feel great and be worth your spending. But readjust your monthly budget to account for it. Most people don’t factor for their spontaneous generosity.
•Take time to be generous.
•Springing for the check is often a short cut to generosity. But if it is not aligned with your goal to save money, and you still want to be nice … bake cookies. It’s cheaper, and the time invested is more difficult to part with than the cash, illustrating what your generosity is really worth.

Source

The Internet: A Way to Save Money Part Two

2010-01-04T11:11:00.000-08:00

Last week I blogged about how you can use media sites like Hulu and Megavideo to help you save money on your television bill and movie rentals. This week I'll talk about how to save money on music that you can find online - and no, I'm not talking about downloads.

As the past few years have made blatantly obvious, the music industry is in serious trouble. It's consumer base has begun to desert it while major bands and musicians (such as Nine Inch Nails, Streetlight Manifesto and Radiohead) have begun to release their music as free downloads on the Internet. Coupled with infamous programs and websites such as Napster, Limewire, and bit torrents, the music industry has been hit harder than perhaps any other media network. Now, enter Internet radio.

A growing online movement is the ability to listen to music online for free in a manner similar to music being played over the radio: this is being called streaming music. Most people are already familiar with the concept of streaming; if you have ever used Youtube, what you are doing is viewing videos being streamed online. Streaming music online works in a similar manner.

Different websites accomplish this in different ways:

Radio:

Some websites are actually radio stations; you can often use them to listen to any song that they played over the airwaves within the last hour. They can be commercial free or not; it depends on the station in question. Most radio stations with this service currently offer it for free, like Florida's 103.1 "The Buzz".

Not all radio stations offer this service; but there is a large (and growing) number that do in an attempt to keep up with constantly changing technology. The two best ways to find out if a radio station that you like streams music online is to A) listen- the radio station will generally advertise if it has an online component, and B) type in the radio stations AM/FM station # and/or name into your search engine (like Google, Yahoo, or AOL). If it is online, you will probably get a result quickly and easily.

Pandora:

Welcome to Pandora... and it is not a reference to James Cameron's' blockbuster movie. Pandora operates a little differently than Internet radio stations. Like a radio station, you do not directly choose the song that you want to listen to. But unlike a radio, you get to choose the type of music that you want to listen to by creating your own playlists. You can customize your playlists quickly and easily; the only things that are required to do so are an Internet connection and a free profile.

The best tool to customize a playlist (which you will have access to once you create a free profile) are the "like" and "dislike" buttons. If you click the "like" button, Pandora will play that song and others like it more often; if you click the "dislike" button, that song will never be played again and songs like it will appear less frequently. You also have the ability to skip a certain number of songs per hour if you are not in the mood to listen to them and do not want to hit the "dislike" button. You can also freely switch between playlists at any time.

To get an idea on how Pandora works, consider the following three examples:

If you made a Rock playlist, Pandora could recommend music to you ranging from bands like the Rolling Stones, the Beatles, or even Greenday.

If you really liked the band U2 and you made a playlist just for it, Pandora might suggest songs by bands like Coldplay.

Finally, if you like a specific song such as Benny Goodman's"Sing Sing Sing", Metallica's "Enter Sandman" or some other song, you can listen to similar ones by creating playlists with the specific song as the playlist's title.

Pandora and online radio stations are great ways to save yourself money. You can listen to all of your favorite artists and bands for free - and legally as well! While it will probably not be a huge money saver for most people, every penny counts. And if you have kids who like to listen to music 24/7, then online streaming offers you a great way to keep them happy while saving you money.

Youtube:

As a final tip for those who are interested, you can do something similar with Youtube (although it requires more time and attention to manage). Since Youtube has nearly every song ever written on it in multiple forms, you can use it to listen to music. However, you will have to switch between songs manually unlike Pandora or Internet radio stations. You will, though, have full control of what you listen to while avoiding commercial interruptions.

The Internet: A Way to Save Money

2009-12-28T15:55:00.000-08:00

As many people can attest, the dollar cost of both cable and broadcast television has seen a steady rise in price over the past few years. The reason isn't that television shows are getting any better (have you checked the local news lately, or have you ever heard of the saying "500 channels and not a single thing to watch?") nor is it because shows are becoming more difficult to create. So why the hike in price?

One of the reasons is actually quite simple: competition.

Smart money savers across the globe have realized that many of the shows and movies offered by cable companies can be found online for better deals. Sites like Hulu.com offer internet users popular shows and movies for viewing free of charge! With a little bit of common sense, you can use the internet to cut down on a variety of costs such as your cable bill, movie rentals, and more, all for a price that you are already paying.

Sites to Visit:

1) Hulu

Hulu, for instance, is simple and easy to use. You are required to view advertisements at the beginning of the show and at set intervals, but the ads shown are usually under 30 seconds long rather than the '5 minute' periods television viewers have become accustomed to. Additionally, you can stop and pause the show whenever you wish, and view an earlier portion of the video with a simple click of your mouse. You can also watch it from nearly any computer, meaning that you don't have to be chained to one spot for the shows duration. You can also view the video whenever you desire, which can allow you to multitask as you watch the show or enable you to do more important things before you sit back and relax.

2) Netflix

Sites like Netflix.com differ from Hulu. They generally offer members movies and television shows for viewing online as well, but in a slightly different manner. Originally designed as a movie rental site to compete with companies like Blockbuster, netflix offers movie rentals and ad free online viewing for flat rates depending on the package that you ask for. It has also partnered with Microsoft and Sony to allow their video game consoles (The Xbox 360 and PS3 respectively) to access their selection of online shows and movies as well; if your kid owns one of these, then take advantage of it! All you need is a t.v., the video game console, and an internet connection. You can save money on movie rentals, streaming, and dvd purchases by getting a service like netflix which offers a wide variety of services for one flat price.

3) Others

Other legal sources for playing or viewing (a.k.a. streaming) movies and shows online include Veoh.com, Megavideo.com, and Youtube. These three websites contain videos and clips of videos that individuals have uploaded for other people to view for free. Furthermore, in 2009 a few media corporations began to upload full length episodes of hit shows to youtube. The picture quality that these sites offer is usually lower than the quality found on the other sites like Netflix or Hulu, but they can sometimes offer a larger selection and variety to choose from.

Save Money!

Of course, the internet can save you money on more than movies, television, and movie rentals. Check in next week when I offer a few more ways to get the most out of your internet bill while cutting back on some of your other expenses.

Further Reading/Other Sites to Visit:

Hulu

Netflix

New York Times Article

Last-Minute SHopping on a Budget

2009-12-22T13:27:00.000-08:00

Time is running out: It’s the fourth quarter, you have no time-outs left and you haven’t even begun your holiday shopping.

It’s time to huddle up. Starting in 2010 you can get organized. You’ll make a budget and commit to staring and finishing your shopping before December 1st. Right now, you just need to get out there and get it done without ending 2009 burdened with the national debt of a South American nation on your credit card. You don’t have time to worry about getting the perfect gift for everyone. Just follow these tips for last-minute shopping on a budget and focus on buying a good gift at the right price.

Make a budget, then cut it by 20%

Sit down and make a list of whom you need to buy for and how much you need to spend on each person. List those people in order of importance so you can allocate your resources accordingly. (Just don’t let anyone see that list.) Tally up the total, then cut it by 20% — and stick to that number. How?

Try to talk certain people into not exchanging gifts this year. Take advantage of every sale you see. (When you give her something from the “clearance” rack it’s another way to say “I love you.”) Keep track of your purchases so you stay aware of how close you are to your stated limit. Staying aware of how much you are spending will help keep you from going in the red.

Plan your shopping excursions

Too often we find ourselves reenacting Death Race 2000 in the mall parking lot trying to find just the right pair of slippers for mom two days before Christmas. Or, you’ll spend hours wandering up and down department store aisles wondering what size sweater your sister wears. Do yourself a favor this year: Make a plan before you go to the mall.

The internet is a great tool for comparison shopping. A quick search will tell you how much the same camcorder costs at Best Buy, Wal-Mart or Target.This lets you go to the malls and be a sniper. You can go from store to store picking off the best gifts at the best prices.

Also, don’t get tempted to sign up for a high-interest credit card at the counter when you go to check out. Sure, they’ll give you a discount on what you buy that day; however, if you don’t pay the bill off as soon as you get it, you’ll find yourself paying more for it over the long-term as the interest starts to accumulate.

We have two more tips for last-minute shopping on a budget next…

Source

Be Frugal, But Don't be a Cheap Bastard

2009-12-14T08:27:00.000-08:00

I always talk on here about watching your spending, staying out of debt, to stop spending on useless “stuff” that doesn’t bring real benefit to your life, etc.. But that doesn’t mean you should be a cheap bastard with your money, either. Being frugal is one thing, but not spending a dime, including not on great life experiences or time with friends, means you are missing out on your sole purpose of being on this earth – living. I am all for saving and watching what I spend, but as an example, I spent quite a bit of money this weekend visiting friends, going to a Colorado Rockies game, going out to nice dinners, and doing a few things I don’t get a chance to do living in a small town…and I enjoyed every single minute of it, even if it cost me a pretty penny. Sometimes, it’s totally worth the money spent.

If I were truly a cheap bastard, I would figure a way out of paying my share (or the entire bill) when eating out with friends.

If I were truly a cheap bastard, I wouldn’t have spent the money to buy my psuedo niece and nephew some ice cream when I was taking care of them.

If I were truly a cheap bastard, I wouldn’t have spent the money on tickets, parking, $6 beer, and all the crappy food we could eat at the baseball game.

If I were truly a cheap bastard, I wouldn’t have taken my buddy out for a few beers to discuss some important stuff. That’s what friends are for.

And if I were truly a cheap bastard, I would have snuck my own bird feed into a “Birds of Prey” exhibit instead of giving the kids some money to buy the appropriate feed, which benefits habitat restoration for the birds.

Might I have to tighten my belt for the next couple of weeks to make it up? Maybe. But the lesson here, of this post, is that money can be replaced – life cannot. Don’t be a cheap bastard when it comes to the important stuff in life

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The Joy of Buying a New Car: 9 Car Buying Tips

2009-12-09T06:35:00.000-08:00

The process of buying a car is just not what it used to be. Gone are the days of brand loyalty, limited selection, and awkward and long-winded pricing negotiations. Nowadays, consumers often focus on car reliability rather than nameplates, the exact model that meets their families’ needs, and are well versed on exactly how much their car should cost, including all selected options. It’s safe to say that the car buying momentum has shifted from car dealer to car consumer, and it’s a great time to be buying a car!

There are, however, a few key areas and tips that prospective car shoppers must keep in mind when looking to buy a new or used vehicle. At the least, the new or used car buyer must do his or her research upfront and be as prepared as a trial attorney on court day before buying a new or used hunk of steel. Here, then, are 9 key car buying tips that stem from years of industry knowledge and practical, hands-on experience.

1. The Magic Word: Reliability

Long term reliability is defined broadly as how well your car will run without expensive maintenance and repair (outside of standard oil and filter changes, new tires and brake pads, etc.). Toyota and Honda, for example, have had excellent long term reliability over the last 10-15 years, and most customers are extremely happy with various models from the two brands. Vehicles with good reliability require fewer trips to the mechanic and provide piece of mind while on the road, not to mention playing a large role in resale value. In short, reliability should be the number one item on your car shopping list.

2. Buy and Hold: Cost of Vehicle Ownership

The Cost of Vehicle Ownership is the amount of money a car owner will spend over the lifetime of a car. Just image if you knew how much your fancy foreign car would cost you to insure, repair, and fill with fuel every week — would you buy the same car again? Most cost of vehicle ownership information includes vehicle depreciation and online tools. (Edmunds’ True Cost to Own exposes the full five year cost of owning and buying a vehicle.) From a practical perspective, you may find that even though a particular make and model has a higher initial purchase price, it may be cheaper to own over a 5-10 year period (making a more expensive vehicle, at times, a better value).

3. The Myth of MSRP: Pricing

Car dealerships are privy to a host of pricing data such as MSRP, dealer invoice price, rebates, special interest rates, OEM incentives, vehicle availability, etc. Fortunately, car consumers have access to the same data via the many third party auto sites (Edmunds, MSN Autos, KBB, etc.)! Let’s break down the data points:

■MSRP: this is the manufacturer suggested retail price, and it’s exactly what the acronym implies (what the producer of the car suggests the dealer should sell the car for). Car shoppers should ignore this figure.

■Dealer Invoice Price: this is the price the dealer paid the OEM to acquire the vehicle, and it is never the same price as the MSRP. If you can get dealer invoice price on a vehicle that is in demand and has good reliability, then you’ve gotten a great deal. You should be able to get a document stating dealer invoice from your dealership (or simply get the VIN# and call the OEM).

■Special interest rates and incentives: these are additional cash back offers and special interest rates on particular makes and models. The OEM or dealership can offer the aforementioned incentives, and they are usually disclosed upfront.

Generally speaking, a car shopper should never go into a dealership until they’ve completed all the necessary pricing research. Moreover, a car shopper should always focus on the total price of a vehicle (regardless of whether you’ll be leasing or buying) versus a monthly payment (this is a typical dealer tactic that sways the shopper’s attention away from overall pricing to a monthly payment figure). Generally, the dealer wants to make a profit on every vehicle they sell, and unless you’re buying a vehicle that nobody wants, you can expect to pay a little bit over the dealer invoice price for your new car (the trick is to find the dealer invoice price, which is below MSRP, and then start negotiating).

4. The Age Old Dilemma: Buying/Leasing

Buying a new vehicle will, generally, save you a ton of money over the long term and is often the better choice from a finance perspective. There are some benefits to leasing a vehicle though, such as driving a new car every couple of years and limited maintenance and repairs (a new car should have less maintenance than an 8 year old vehicle, for example). However, putting down a decent down payment and buying a new car will save you money over the long term — provided you maintain your vehicle according to OEM specs and aim to pay off the vehicle as soon as possible.

5. The No-Brainer: Buying Used

I’ll let you in on a little secret: almost all new vehicles sold in the U.S. today are made to run maintenance free for at least 100K miles. Thus, a well maintained vehicle should have no problem lasting 200K+ miles. What this means is that buying a 3-4 year old used vehicle will be one of the smartest financial decisions you’ll ever make (as you let the person who wants that new car smell — which is artificially sprayed into the interior of the vehicle at the factory, by the way — pay for the depreciation, which is close to 50% at the three year mark). So, buy a reliable 3-4 year old used vehicle with low cost of vehicle ownership and good reliability. Oh, and skip the certified pre-owned designation dealerships slap on used vehicles. (This is often a practice that varies from OEM to OEM, and at the minimum, includes checking brake ware and engine oil and filter.) My advice is to bring the used vehicle you’d like to buy to your favorite independent mechanic and have him or her inspect the vehicle.

6. You Don’t Need a Butt Warmer: Necessary Vehicle Options

When people think about vehicle options they think leather seats, GPS, rear gate closer, automatic starter, iPod compatibility, etc., but they often disregard key safety features that no car driver should be without. So, when looking for a new or used vehicle, make sure the following vehicle options/features are included:

■Electronic Stability Control (or ESC): this feature will basically save your life if you lose control of your vehicle. ESC works in conjunction with the vehicle brake system and engine management software, and if the vehicle computer senses wheel slip (because of sudden breaking on ice or wet roadways), the computer will begin braking and de-accelerate the vehicle so that the driver can regain control and avoid a crash. You’d be surprised how many people overlook this life saving feature (and by 2012 ESC will be standard on all cars sold in the U.S.).

■Side Impact and Rear Air Bags: Like ESC, many high priced car brands include additional air bags as standard, and that’s a good thing! Air bags, of course, save lives, and additional front and rear passenger side and front bags are worth the added expense.

■Anti Lock Brakes: Yes, this is becoming more and more standard on new vehicles, but when I purchased my 2005 Mazda 3 I had to select Anti Lock Brakes as an option. Controlling a vehicle that has suddenly locked up its tires is difficult, even for trained professional drivers.

■Back up camera: given that many new cars have curved exterior styling, it’s become increasingly difficult for car drivers to see out of the rear and side of their vehicle (hence the increasing amount of blind spots). A good back up camera (like the one found in the 2009 Nissan Murano, for example) will make up for the inability to see out the back and side of most vehicles.

You can skip leather seats (which are often synthetic), GPS (just buy an aftermarket device or use your Blackberry or iPhone), heated and cooled seats, rear seat entertainment packages, special paint, fancy rims, and low performance sports tires (they are often disastrous in snow and rain and have a low tread life).

7. The Car as Appliance: Styling

Here’s where the luxury OEMs begin to tempt your non-analytical side: German manufacturers, for example, claim “European” exterior styling with “cutting edge lines” and “beautifully sculpted” interiors with “maple wood grain,” “Nappa” leather, and “ambient lighting” that make you feel like you’re at your local AMC movie theatre. My advice (and you probably guessed it by now) is to skip the urge to buy a vehicle because of looks or what other people may think about the styling of your new vehicle. From an ownership and cost perspective, you should pretty much avoid buying a car because it looks pretty.

8. The Only Thing The Mafia Got Right (i.e., only be loyal to your family): Brand Loyalty

As a recent NY Times article stated about car shopping trends, brand loyalty is dead. Gone are the days when dad would head down to the local Ford Dealership every ten years and pick up a new car (often buying 4-5 new cars from the same mom and pop dealership over a lifetime). Moreover, dad would also train little Timmy to buy from the same dealership, and the trend would continue over generations. (This is just not happening anymore and will never happen again.) More and more, car shoppers will abandon their previous make and model for a cheaper and more reliable vehicle, even if it means switching brands and dealerships. The new “loyalty” is about which vehicle lasts the longest, presents the best value, and will not bankrupt the owner to maintain over a long period of time.

9. Don’t Be Afraid: Repair and Maintenance.

It’s a fact that at most dealerships, the biggest revenue producing departments are the Parts and Service areas. The dealership relies on new customers thinking they have to service their vehicle where they purchased it (charging $45 for an oil and filter change, for example). Well, this is not true and, moreover, incredibly costly. In my opinion, the only work that should be done at a dealership is any item under warranty (thus, free work). For all other maintenance (oil and filter change, new tires, brakes, exhaust system, alignments, etc.) and repair, go to your local ASE certified mechanic. And treat your local mechanic well (buy him wine and lunch)!

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Real Tips for Cutting Down Your Food Bill

2009-12-08T06:45:00.000-08:00

When you’re on a tight budget, going to the grocery store might bring about a sense of impending doom. Feeding yourself and your family can be quite expensive. But there are many ways to save money. Here are some tips that anyone can use to slash their food bill.

* Plan your meals for the week before you go to the grocery store. If you go in with no idea of what you will be eating, it’s hard to buy the right amount and types of food. You will either come out of the store with too much or not enough. Buying too much food means you’ll spend more than you should have, while not buying enough will make more trips to the store necessary. So write down what you will prepare for each meal, and make your list from that.

* Add snacks to your list. Make sure they are things that your family will actually eat, and realistically figure up how much of them you will need. If you fail to do this, you could end up buying a lot of unnecessary junk food.

* Stick to what’s on your list. This is a rule with few exceptions. If you get to the store and see a great unadvertised sale on something that you use frequently, go ahead and stock up. Otherwise, buy only what you’ve written down. If you’ve properly planned your weekly menu and based your list on it, you won’t need anything else. (On a related note, always eat before you go to the store. If you’re hungry, you’re more likely to buy things you don’t need.)

* Cook in bulk, and use the leftovers to make different dishes. For example, if you roast a chicken, you could use what’s left after dinner is over to make soup, chicken and rice, or some other dish. Alternatively, you could cook meals in large batches and freeze them in individual portions to eat later. Either of these techniques will yield several meals at a low cost.

* Combine coupons with sales to get items you will use at very low prices. When you get your hands on a valuable coupon, scour the papers to see if any local store has the item on sale. As long as it has a long shelf life, it doesn’t matter if you’ll use it right away or not.

Simply shopping smarter can save you lots of money on food each week. So don’t go in the store with no list and no idea what you actually need. Plan ahead, and keep your budget in mind. By following these simple guidelines, you can spend your money on the right things and avoid ending up with a cart full of expensive junk.

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Eighteen Tips for Living Within Your Means

2009-12-07T13:10:00.000-08:00

By: Marc and Angel Hack Life

Live a comfortable life, not a wasteful one. Do not spend to impress others. Do not live life trying to fool yourself into thinking wealth is measured in material objects. Manage your money wisely so your money does not manage you. Always live well below your means.

1. Redefine your definition of “rich.”

“I remember sitting in a cubicle at my first professional job staring at a picture of an SUV I wanted to buy (and eventually did). Now, I sit in my office and look at the pictures of my kids, and just outside my window I can see the beater I drive sitting in the company parking lot. What a difference a decade makes! To sum things up, my definition of being rich is having enough money to meet my family’s basic needs, a few of our wants, and to be able to give some away to others.”—via Frugal Dad.com

2. Borrow and share. Everyone wins!

“We borrowed a DVD from a friend instead of renting or buying and had a little snack from our own fridge! Way cheaper than using gas to drive to the theater/rental place, paying for a movie, and paying for a snack.”—via MyDollarPlan.com

3. Avoid the mall.

“Going to the mall is not entertainment! We used to go when we were bored. Of course, we usually ended up spending money while we were there. If you need clothes, then shop sales or go to stores that offer name-brands at a discount. You can save a ton on these items if you are a smart shopper. Dave Ramsey says, “Never pay retail!” We probably save $15 to $30 per month by staying away from the mall.”—via MySuper-ChargedLife.com

4. Limit your intake of advertisements.

“Advertising sucks. That’s the cold, hard truth. It’s engineered to make you feel like you’re incomplete, that you have an unfulfilled need, that you’re not good enough.”—via OnSimplicity.com

5. Buy with cash.

“You can’t spend money you don’t have. Many bank accounts provide overdraft protection, so even with a debit card, it’s easier to go over your account balance than you think.”—via SimpleMom.com

6. Find a better deal and actually SAVE the difference.

“Regardless of what they sell, if you’ve switched companies for price reasons, save the difference. Think of phone companies, internet access, cell phones, credit cards, and others.”—via TheWisdomJournal.com

7. Adhere to a long-term investment strategy.

“I’m a long-term investor. The stock portion of my portfolio is spread over several mutual funds, a few ETFs and a few individual stocks. Each and every one of these holdings was carefully chosen, after thorough research. I believe in these stocks and funds. I consider them as my best bet in growing my money—long term.”—via MomGrind.com

8. Curb your consumerism!

“Have you ever watched how a child can play with a cardboard box for hours, and leave the toy that came in it by the wayside? How is it that children can enjoy themselves without a lot of “stuff”, but we as adults feel the need to reward ourselves by buying more stuff?”—via BillionaireWoman.com

9. Stay Healthy! Medical problems drain bank accounts.

“James M. Rippe, M.D is a best-selling author, world-renowned cardiologist, and founder of the Rippe Lifestyle Institute. He explains that if you look at all the risk factors for dying, the one that is most predictive is fitness level. In addition, an older person with high cardiovascular fitness is healthier than a younger person who is physically inactive. By increasing your fitness level, you can actually roll back your biological clock.”—via AbundanceBlog.com

10. Stay in and relax.

“So, think about it the next time you go out. Are you going for with a purpose? Maybe the solution is to not go out at all. Stay home and save! Save up for something you really want or need.”—via TheJungleofLife.com

11. Gradually prepare yourself for a rainy day.

“Even when things are going great, and you feel on top of the world, you must always be prepared for a change. If you take the time and patience to set yourself up properly, then when things to take a turn for the worse, you will be prepared to handle it. If you live above your means, then when the slightest change occurs, you will not be prepared to adapt. Financial flexibility is more important then keeping up with the Jones’.”—via YinvsYang.com

12. Stop competing. Forget about the Jones’ altogether.

“If getting rich makes us happy, then why don’t countries as a whole get happier as they grow wealthier? They discovered that as a country gets wealthier there’s no overall increase in happiness. Why? We continually compare our wealth against that of others. We are competitive and envious. Add to that the fact that Western countries encourage people to strive for more and more, and you have a formula that spins many into depression.”—via ColorYourLifeHappy.com

13. Get out of the “easy street” mentality.

“I think there is too much emphasis on the quick fix or the easy option in today’s society. For example taking diet pills to lose weight instead of the “hard option” - exercising and eating well…. money is sometimes being used as a substitute for hard work. Do you think there is an increasing expectation that you can get want you want by throwing money around instead of working hard and “earning” it?—via ForeverChange.com

14. Avoid impulse buying. Buy things you truly need.

“Don’t you just love the excitement you feel after coming home with a new TV? Driving home in a new car? Opening the box on a new pair of shoes? I sure do. But, from watching the behavior of myself and my friends I’ve found that the new quickly becomes just another item. The excitement of novelty passes quickly.”—via ThinkSimpleNow.com

15. Time is money. Properly manage your time.

“The fewer tasks you have, the less you have to do to organize them. Focus only on those tasks that give you the absolute most return on your time investment, and you will become more productive and have less to do. You will need only the simplest tools and system, and you will be much less stressed. I think that’s a winning combination. Focus always on simplifying, reducing, eliminating. And keep your focus on what’s important. Everything else is easy.”—via LifeDev.com

16. Find ways to give without spending.

“Want a quick, easy and (almost) free way to be guaranteed that you’ll make someone’s day special? Send them a letter. Why not set aside some time this weekend to sit down and write to a few people? If you don’t enjoy writing, try buying some nice postcards of your home town. If you’ve got an artistic streak, why not design your own note cards? You don’t have to write a long letter for it to be effective. It’s the thought that counts and the personal touch that makes it special.”—via DumbLittleMan.com

17. Don’t let greed and deceit get the best of you.

“According to Stephen R. Covey, if you reach an admirable end through the wrong means it will ultimately turn to dust in your hands. This is due to unintended consequences that are not seen or evident at first. The example he gives in The 8th Habit is: The parent who yells at their kids to clean their rooms will accomplish the end of having a clean room. But this very means has the potential to negatively affect relationships, and it is unlikely the room will stay clean when the parent leaves town for a few days. Now, to return to the topic of wealth, I think it is possible to see much of the world’s current financial problems as stemming from people who wrongly believe the ends justify the means. My advice? It is fine to aspire to wealth, but don’t lose sight of the means to accomplishing it.”—via TheChangeBlog.com

18. Never ever pay retail.

“You can easily save hundreds of dollars a year on clothing purchases by waiting for sales or shopping at discount retailers like Marshalls. Better yet, avoid name brand clothing all together.”—via MarcandAngel.com

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Best savings accounts for growing your money

2009-12-03T07:07:00.000-08:00

With a little research, you can find the best savings account to make your money grow as safely and quickly as possible. What are the characteristics of the best savings accounts on the market today?

Competitive interest rates. The best savings accounts usually pay a slightly higher interest rate than checking accounts, while keeping your money liquid. Your savings account pays a rate of return on all the money in your account, which means you get paid for just letting your money sit there. If you're not planning on using or investing the money, it's better to keep it in these savings accounts than stashing it under your mattress.

Safety. One of the safest things you can do with your money is to put it into a savings account. The best savings accounts are FDIC insured up to $250,000. And you can't say that about your mattress.

Extra features. The best savings accounts are the ones that make your life as easy as possible. Good interest rates aren't the only hallmark of the best savings accounts--you want to make sure to consider other options, such as: Does your bank offer CDs, if you plan to transfer some of your savings to CDs? If it's an online bank, do they have physical locations you can go to if you need to, say, print a check? How long do you have to wait for bank-to-bank transfers?

So where can you find the best savings accounts for you? Believe it or not, some of the best savings accounts today are online. Though you might be wary about working with your finances online, these online savings accounts have proven to be as safe as brick-and-mortar banks, provide comparable services and higher interest rates, and don't require a minimum balance.

Some of the biggest online banks offering the best savings accounts are: ING Direct Orange Savings Account, Emigrant Direct American Dream Savings Account and HSBC Online Savings Account. The one exception: If you have a significant amount of cash to deposit, these online banks might not offer the best savings accounts for you, so be sure to research both online and brick-and-mortar banks.

You may hear the term "high yield savings account." That basically means a savings account with a high annual percentage yield, and to qualify for the best of these savings accounts, you probably need to meet some criteria, such as keeping a high balance over a certain period of time, limiting account transactions, and maintaining other accounts within the same bank. Ask your current bank what high yield savings account they offer, to see if they can provide you the best savings account possible.

One example is the Ally Bank (formerly GMAC) High Yield savings account; another is the Costco Capital One High Yield Savings Account, which offers a 1.75% rate (as of 11/23) when you have an account balance of $5,000 or higher, and a 10% quarterly bonus on your interest earned that quarter when your average balance is at least $15,000. You also get a Costco bonus that varies depending on your Costco membership level ($60 for Executive Members and $20 for Gold Star and Business Members) when you open the account and deposit $5,000 within the first month.

Then again, maybe the best savings account for you isn't really a savings account. If you want a savings account and a payment account, where you can write checks, pay bills online and have access via a debit card, look for a hybrid account. These allow you to earn interest on par with the best savings accounts and make payments as you would with a checking account.

One hybrid is the CapitalOne High Yield Money Market Account -- but you should also take into consideration that CapitalOne doesn't always get the best reviews from its customers. To read customer feedback, go here.

For more up-to-the-minute information on best savings accounts, check out the Bankdeals Website.

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Frugality: Just a fad? Or will consumers keep saving post-recession?

2009-12-01T06:42:00.000-08:00

By Allie Johnson
The tanking economy brought us recession chic: Paying for splurges with plastic went out of style, and instead it became cool to clip coupons, throw potlucks and swap used items.

But have we really made a lasting change to our old credit-happy ways? Experts say yes -- kind of.

Some economists have proclaimed the so-called Great Recession over, but economic forecasters and consumer psychologists say the predicted slow economic recovery doesn't mean a quick return to old shopping habits, and that this recession -- the worst since the 1930s -- likely has left a deep and complex mark on the psyche of the U.S. consumer that will last for years to come.

What will the future look like? New research conducted with both consumers and experts provides a glimpse into which recession-influenced changes might be passing fads -- and which ones likely will last.

The Great Recession: bad enough to create real change?

Every recession is unique, but experts say there are two general types. One is short and brief, usually followed by a quick rebound to pre-recession habits. The other is long and severe enough to shape a generation -- think of the grandparent who lived through the Depression years, and who still stashes money in a sock and saves sandwich crusts.

This recession, though, may be the exception, some experts say, one that doesn't fit neatly into either category.

"This recession is halfway between a normal one -- if you can talk about something like a recession as normal -- and the Great Depression," says Michael Willmott, co-author of "Complicated Lives: The Malaise of Modernity" and a consumer trends forecaster.

5 TIPS TO PREVENT
A POST-RECESSION BACKSLIDE
Do you like your new frugal habits? Want to keep them after the economy improves? Take these steps.

1. Take stock of changes you've made. Get out your financial records -- Quicken reports, check book register, credit card statements, household budget -- and write down the changes you made and how much you saved. "So many of these changes become habit without really thinking about them, and that makes it really easy to let them slip away," says Kit Yarrow, a consumer psychologist at Golden Gate University in San Francisco.

2. Prioritize your changes. "Triage or prioritize all of the changes you've made -- which were the hardest versus which were the easiest to make, and which had the biggest payoff versus the smallest payoff," Yarrow recommends. Then, decide which to keep. Example: You're a coffee connoisseur who switched to instant. You've hated every sip and saved just a few dollars a week. Feel free to switch back -- without guilt. On the other hand, if you've saved big by switching from the bookstore to the library, keep at it.

3. Get a post-recession buddy. Team up with a friend who also is committed to keeping changes made during the recession. Together, review your changes and set goals. "We tend to be better at keeping commitments to other people than to ourselves," Yarrow says.

4. Turn recession-era habits into fun traditions. Look at some of the social changes you made during the recession, and make them official. For example, if you've been holding potlucks because you and all of your friends were broke, then start a monthly Potluck Club. "We feel rich instead of poor if we're doing something that is unique, and something that requires us to stretch ourselves in some way, so we are growing and advancing," says Kathleen Gurney, an expert on the psychology of money.

5. Try staying on your recession budget in post-recession times. Maybe you lost your job or took a pay cut, but now your situation has improved. Stick with your recession budget and automatically deposit the extra into a savings account. Create short-term and long-term goals for the money. "It's a lot easier to do if you have plans for that extra money, Yarrow says.

This recession was severe enough to push many consumers to cut back substantially. Coupons made a comeback -- consumers redeemed almost 10 percent more in January of 2009 than they had in that month the previous year, according to coupon-processing company Inmar. Entertaining on the cheap got popular -- the event-planning Web site Centerd.com reported that starting in fall 2008, potlucks began to account for one-third of activities planned by site users. Swapping used items became trendy -- the site SwapTree.com grew tenfold from the fall 2007 to fall 2009.

However, psychologist Kathleen Gurney, an expert on the psychology of money, says she's skeptical about consumers' ability to stick with those frugal habits. "All of our best intentions can be sabotaged by our old habitual reflexes -- it's like a New Year's resolution," Gurney says. "Now that things are on the upswing, people are really going to have to practice self-regulation."

Say goodbye to extreme frugality

Just like a fad diet of grapefruit or cabbage soup, many experts say so-called extreme frugality likely will not last. A report released in October 2009 by RetailWire, an online retailer discussion forum, summing up an online survey of more than 300 retail experts -- including high-level executives, retail consultants and merchandising professionals -- called certain consumer behaviors knee-jerk reactions to the recession. The report authors wrote: "They are just fads."

Experts surveyed predict that these belt-tightening measures -- such as trading dinner at the corner bistro for Rice-A-Roni at the kitchen table, grabbing clothes from the closet instead of hitting the mall and taking a road trip to Tampa instead of a cruise to Tahiti -- likely will last only six months to year and a half, or as long as consumers are strongly feeling the effects of the recession. For example, 73.6 percent of RetailWire respondents say that eating out less is a short-term fad while 73.1 percent say the same about buying fewer new clothes and 72.2 percent about vacationing closer to home.

"Most likely, people who liked to go out to lunch before the recession will start going out to lunch again, and people who were brown-bagging it before will continue to do that -- but the crossover will go away," says Ray Jones, managing director at the consulting firm Dechert-Hampe and co-author of the RetailWire report.

Some consumers surveyed say they might start shelling out for purchases they shunned during the recession. For example, in a Consumer Reports Research Center survey released in September 2009, the most-mentioned post-recession splurge -- planned by 17 percent of respondents -- was a vacation. In an American Express Spending & Saving Tracker monthly survey released in October 2009, 61 percent of consumers said they expected to spend more in the next 30 days than in the previous month. "Consumers are finding more optimism toward spending -- and dining out and travel were two areas where consumers said they were planning to loosen their purse strings," says American Express spokeswoman Desiree Fish.

Frugality, in moderation

However, that does not mean consumers will go right back to their pre-recession ways. "As we transition to our new reality, we will still go out to dinner, but not as often," says economic forecaster Joel Naroff, president of strategic economic consulting firm Naroff Economic Advisors. "We will still take trips to Europe or the Caribbean or Disney World, but they won't be as lavish -- we won't spend quite as much."

A combination of factors -- consumer feelings before the recession, the emotional impact of living through the worst recession many consumers had experienced, continuing high unemployment and the fact that our economic bubbles have all burst -- will create a new consumer who spends money more conscientiously.

Experts say that -- in contrast to fads -- trends that were taking shape before 2007, but were accelerated and deepened by the recession, are much more likely to stick. Even before the recession, consumers were feeling overwhelmed by too many choices, according to Willmott. "There was a demand for simplicity that was picking up anyway -- a boredom with excessive consumption," he says.

Consumers will continue to simplify and seek value, experts say. For example, between 60 percent and more than 80 percent of experts surveyed by RetailWire said consumers will continue to plan shopping trips with lists and store circulars, use store loyalty cards more and buy high-quality store brands. "Once you've been acclimated to going to the discount store or buying the store brand of detergent, you aren't going to revert back to your earlier behavior," Jones says, noting that easy, nonpainful changes are more likely to stick.

Once you've been acclimated to going to the discount store or buying the store brand of detergent, you aren't going to revert back to your earlier behavior.

Consumers also will continue to save more than they did before the recession hit. Forecaster Naroff predicts the personal savings rate will continue to hover around 4 percent to 5 percent for the next three to five years, while Scott Hoyt, senior director of consumer economics at Moody's Economy.com, foresees a slight uptick. That's because, consumers have realized -- from watching their wealth decline during the recession -- that they can't reach their savings goals by starting with a tiny nest egg and sitting back while it grows. "Now [consumers realize] you've got to contribute regularly, you've got to add to that savings pool over time," Hoyt says. "That means there's going to be more saving than there was before."

Bubbles popped

Experts say consumers also will borrow less, partly because there is not as much credit available and because they don't feel as rich. According to information released by the Federal Reserve, revolving credit continued to fall steadily, decreasing by an annual rate of 13.3 percent in September 2009. Naroff says the lack of economic bubbles -- such as the tech bubble of the '90s that "drove up the stock market and made everyone think they were wealthy" and the housing bubble of this decade, in which consumers "used their homes as ATM machines" -- will play a part. Naroff says, "Now we don't have any bubbles, and that will be a key factor in keeping credit growth down over the next three to five years."

A survey by Citi, released in September 2009, revealed that almost two-thirds of consumers (63 percent) say that the recession has forever changed the way they spend -- and save. The same percentage said they would continue to reduce their debt, 61 percent said they would continue to cut down on credit card purchases and 60 percent planned to continue to save and invest more.

Forecaster Naroff says: "There definitely will be lessons learned from this recession."

Source: Creditcards.com

5 Reasons Why Some People Never Get Ahead Financially (And Others Do)

2009-11-25T08:36:00.000-08:00

Meet John. John’s a nice guy, has a stable job and is making a good income.

He’s got a good marriage, has two kids and a dog. He drives a newer car, lives in a nice neighborhood and plays golf a couple times per week.

From the outside, it looks like John is living the ultimate American dream.

But a quick peek under the hood will reveal that things aren’t always as they seem.

He’s got some credit card debt – “Nothing major”, John would say about his $5,000 balance. “That’s less than the average right?”

He also has a mortgage and a Home Equity Loan he took out to pay off some earlier debt. In fact, he and his wife are upside down on their new house since home values dropped.

Against the advice from a friend, John took out a loan from his 401k for a down payment on their new car.

The car is financed at 0% and I’m paying myself back at 7 – It’s a no brainer!

John says as he flashes a smile like he just got away with something he shouldn’t have.

He’s also lost a lot of money in his 401k becuase he kept putting off a review of his funds and allocation.

John and his wife are getting nowhere fast.

Ever feel like you’re spinning your wheels when it comes to your finances?

You’re not alone. Why do some people get ahead while others seem to barely squeak by?

Identifying the reason can help you get on the right track. Here’s five reasons why some people never seem to get ahead:

Laziness or Procrastination

Most of us put off the things we don’t like to do and we are very eager to do the things we love. If you’re not a big fan of dealing with your finances, you might find yourself putting things off that need to be done.

Things like 401k reviews, starting a budget or getting a plan in place to pay off credit cards may not sound like fun, but the longer you put them off the worse your situation can become.

Not Taking Advice

For whatever reason, some find it difficult to take advice - or at the very least they find it hard to implement.

Seek good advice and put it into action. If you don’t agree with the advice, that’s one thing. It’s quite another to agree and simply ignore it.

I’ve seen many examples of people not taking advice and continuing down the path of least resistance and never getting ahead financially.

No Self Control

Do you consistently spend more than you make? You need some self control.

It takes a lot of effort and discipline to say no to the things you want to have – especially when you’ve been used to buying whatever you want.

Learn to say no to those things. Discipline and self control will go a long way towards helping you get ahead financially.

Not Specific With Financial Goals

If you are constantly talking in generalities, you will rarely reach your goals.

Folks who don’t specifically state what they want to accomplish are less likely to achieve what they’re hoping for simply because they lack clear direction.

Get serious about turning your “I should’s” into “I will’s” and you will start seeing progress.

Bad Things Seem to Always Happen

Some people never get ahead because it always seems like something is going wrong.

The car breaks down. The roof starts leaking. Family members need financial help. Or any number of other things that could go wrong do go wrong.

This is why it’s vital to have an emergency fund, which can help soften the blow that these bumps in the road will have on your situation.

What to Do About It

The reason some people seem more successful at getting ahead is because they recognize these areas and take action to overcome their obstacles.

Once you’ve identified the reason why you’re not getting ahead financially it becomes much easier to work at overcoming them.

If you’re falling into one of the categories listed above, sit down and write out an action plan of what you will do to help yourself overcome and get on the road to financial health.

Tell someone you have a close friendship with who can help you stay on track.

What about you? What are some ways you’ve overcome some of these obstacles?

Source: Redeeming Riches

How to Bag a Bargain on Black Friday

2009-11-24T07:05:00.000-08:00

Getting ready to go into a shopping frenzy? The holiday shopping season kicks off this Friday, with retailers offering huge sales on everything from electronics to clothing. But if you want to survive the holiday season without regrets and a miserable debt hangover, spend a few minutes now figuring out how to bag real bargains on Black Friday.

Here are some tips provided by bargain bloggers, ConsumerWorld, the Better Business Bureau and others.

1. Make a list. Even Santa needs a list to keep track of who he needs to buy for and what they want. Going into a mall without one is dangerous, with all the shiny objects vying for your attention. SmartCookie Sandra Hanna tells me that people go into something of a hypnotic trance when they hit the malls at the holidays. Lights, holiday music, good cheer–the next thing you know you’re in the dressing room trying on things for yourself, she said. Make that list and find a disciplined shopping buddy who will keep you on task, she suggests. Furthermore, your list will help you do some advance research by checking the web for the best prices, before you hit the mall and get all starry-eyed about monster mark-downs. (Check the Dumbest Things You Do With Your Money.)

2. Check it twice. Do you really need to give all of your girlfriends costly gifts? Do they really need to reciprocate? If this has been a lean year for you and for some of the other people on your gift list, consider going out for a cocktail with your gift-giving friends to set some limits.

Instead of having everyone give everyone something, you could host a pot-luck lunch and secret-Santa exchange, where you’d each just shop for one, for example. Maybe instead of giving costly gifts, you can exchange Christmas ornaments or your favorite recipes. (Taste it at the pot luck; the present is the printed directions on how to make it) It can be difficult to approach the topic of budgeting at the holidays, but your friends might be relieved if you do.

3. Find a coupon. My budget-blogger sources, such as Lisa Koivu at Fantabulously Frugal, and Susan Kessler, The Frugal Diva, tell me there’s a coupon for virtually anything you want to buy if you look online before shopping. Type in “Xbox and coupon” in a Google search, for example, and somewhere in the top 10 hits, you’re going to find a nice little discount offer, whether for the whole product or for free shipping. Some of the coupons only work if you buy online; others allow you to print it out and bring the discount offer to the store. If there’s a particular store that you like, check that too, they advise. Some retailers offer 10% or 20% off on anything in the store.

4. Do your research. If there’s something high-end or technological on your gift list, it’s particularly important to check the ratings before you buy, said Edgar Dworsky, founder of ConsumerWorld, an on-line consumer resource guide. Consumer World’s Top 10 Black Friday shopping tips, also suggests you use their site’s price-checker and gives guidance to which stores are opening in the wee hours for avid bargain hunters. (Some stores offer Black Friday deals before Black Friday, too, according to ConsumerWorld.)

5. Make sure the deal is legit. The Better Business Bureau warns that some “deals” are too good to be true. If you run into an online offer that seems super cheap, make sure to do a little fraud check on the vendor. If the company’s site displays certification seals from the likes of VeriSign, IQNet or TRUSTe, you should be able to click on that symbol and and go directly to the certification company’s web site to verify that the vendor is using the certification legitimately, the BBB says. The BBB also offers “reliability reports” of many vendors on its web site.

If a company won’t accept credit card payments, but demands wire transfers–a payment type that can’t be disputed later–that’s also a big, red warning flag that you’re dealing with a disreputable company. There’s no worse deal than paying for something that doesn’t show up, or shows up used, damaged or knocked-off.

6. Get free shipping. If you’re ordering online, you should know that somewhere in the neighborhood of 300 retailers have agreed to a free shipping day on Dec. 17, guaranteeing that orders will get to you by Christmas if you order that day too. To find out who is participating, go to FreeShipping.org.

One last thought, it’s easy to get lured into the spend, spend, spend mentality at the holidays, but remember the immortal words of Dr. Seuss’ Grinch: “Maybe Christmas…doesn’t come from a store.”

I will hope that, for all of us, Christmas means quite a bit more.

Source: Money Watch