Saving For A Rainy Day

Save Money Each Month

2010-09-22T10:47:00.000-04:00

A penny saved isn't actually a penny earned. But every penny you don't spend can be a penny you put in your piggy bank. Here are some tips on ways you can save money each and every day, week and month.

Use your public library. Books, magazines, audio books, films, and CDs are all available for no charge at your public library. Many libraries even offer free events, classes and workshops for children and adults. It is crazy not to take advantage of all that your library can provide. Do yourself a favor and go see what your library has to offer you.
Look for free or inexpensive entertainment. Whether you are taking advantage of free movies in your local park or 'pay what you will' evenings at a museum, lowering the cost of keeping yourself entertained will up your savings total.
Evaluate the money you spend on food. Are you spending more or less than average for your household? If you are spending more than average, coupons and sale items are a great place to start, but there are other options as well. Is there a food or cooking co-op you could join or organize? Would ordering your groceries online allow you to spend less? Are there any farmers markets you can take advantage of? Everyone has to spend money on food, but you can get creative to find ways to lower your costs.
Shop for bargains. No matter what you are looking to purchase, there is probably an option online to find it. Remember to check websites such as Craigslist, auction sites and even Freecycle for products you need. Thrift stores, both online and traditional brick-and-mortar, also offer a lower cost on items from clothing and accessories to furniture and books.

You may not be able to reduce the cost of your mortgage or rent, but many of your other expenses can be tweaked to allow you to squeeze every last penny out of your budget.

Courtesy of: FeedthePig.org

Staying Fiscally Wise When Renting An Apartment

2010-09-08T12:26:00.000-04:00

Given the current state of the economy and the challenge of being approved for a mortgage, more and more people are choosing to rent their houses, condos and apartments instead of buying. The U.S. Census Bureau says home ownership was the lowest during the first quarter of 2010 since the first quarter of 2000.

If you are one of the millions who rent your home, here are some tips on getting the most out of your lease.

Landlord and Tenant Laws: Make sure you know, and understand, the local landlord and tenant laws. What problems and tasks are the responsibility of your landlord and what are yours? When are you due for a new coat of paint, and who pays for spraying for bugs? Remember to check and make sure the rules apply to your landlord—in some areas, those who rent out only one or two properties are exempt from some rules.

Breaking a Lease: Most people don't have plans to break a lease when they sign one, but life sometimes goes in a different direction than expected. Make sure you understand what your obligations are, both financial and otherwise, before you sign your lease, or at least before you decide to break it. When you are signing your lease, if you think there is a chance you might need to break it, talk to the landlord and see if a shorter lease is possible.

Storage: If you have done your best to whittle down your belongings and it still won't all fit in your new pad, investigate storage companies. Paying for off-site storage is usually less money than looking for a place with an extra bedroom. You don't actually need your winter clothes on-hand in the summer.

Rental Discounts: Look for apartments or complexes in your area that are offering discounts or one free month deals. In some areas, it is common practice to offer renting incentives. Just make sure you read the fine print and know when you will receive your free month, and if there are any obligations on your end.

Refer a Friend: Does your building have a "refer a friend" program? If so, make sure you know what the opportunity is. Also remember not to refer any friends unless you actually do like where you are living—awkward neighbor situations could arise otherwise.

Renters Insurance: While signing up for renters insurance will cost you money at the outset, it will save you money if you experience a fire, theft or disasters of another kind. Knowing you will be able to replace your belongings will save you stress and worry, before, after and during. More information is available about renters insurance through 360 Degrees of Financial Literacy.

The most important thing to keep in mind when renting is to investigate your options and know the details of your lease before you sign it.

Visit www.feedthepig.org for more money-saving tips.

Save Money on Your Commute

2010-08-12T19:08:00.001-04:00

Did you know that a 2009 report from the American Public Transportation Association estimated that Americans can save thousands of dollars by switching to public transportation? The Association determined this amount by comparing the average monthly transit fares to the average cost of driving. In cities like New York, Boston and Philadelphia, the annual savings for one person to switch to public transportation was over $10,000!

Two-car families can save by switching to a one-car household, saving money on additional automobile insurance, fuel costs, maintenance costs and parking. The savings could be put toward a future purchase of a newer, more fuel efficient car or another savings goal. Carpooling is another way to save money by splitting gas costs; it can make a trip more interesting, and sometimes faster if your commute has HOV or carpool lanes.

If you already utilize public transportation or are going to start, consider purchasing monthly or weekly passes to save money. Some employers offer pre-tax commuter benefits, such as discounted passes. Or look into transportation during off-peak hours—sometimes the difference in price can add up if you take an earlier or later train to avoid peak travel times. Of course, walking or riding a bicycle can offer even greater savings and have a healthy impact on your life as well.

Visit www.feedthepig.org for more money-saving tips.

Start Planning for the Holidays Now

2010-08-09T15:06:00.001-04:00

The temperature outside may not make you think of winter holidays, but 2010 has flown by and we are officially more than half-way to the holiday season. Now is the perfect time to get a jump on your plans for the holidays. Here are a few tips from Benjamin Bankes for how to spend wisely now for your year-end holidays.

Do you have any travel plans for the holidays? Investigate flight options now before the fares grow even steeper. Now might be the perfect time to schedule a few days off that aren't peak travel times—prices are always highest, and delays the worst, during the most congested travel days. Traveling a few days before or after the holidays, or even on Christmas day itself, could save you time and money. Being flexible on your travel dates will help your wallet.

Are you giving gifts this winter and, if so, how many? Sit down now and make a list of gifts you need to buy and what each person might like. How much can and should you spend for each gift? If you can determine your gift list, you can determine how much you need to save from now until December. Putting aside $5, $10 or $25 each paycheck will add up quickly and you won't have to worry about how to pay for
gifts in December.

Are there any sales to take advantage of this summer or fall? If you know what gifts you are planning to buy, you can take your time to look for, or wait for, sales for your purchases. There are usually sales for Labor Day, Columbus Day and Veterans Day. Extra bonus—you also won't have to deal with the holiday crowds and lines when shopping in December.

Are there any gifts you would like to give that you can make yourself? Planning this far in advance for baked goods doesn't work well but other handmade gifts are usually appreciated and appropriate. Start knitting someone a scarf now and you will have plenty of time to finish before winter.

Does anyone on your list need more time or help to tackle a big project? Time and assistance on projects like organizing the attic or cleaning out the basement could be a great gift you may not have thought of. Time may be money, but sometimes it is easier to find the time for a project than the money for a large purchase.

No matter what your plans are for the holidays, taking steps now will help you stay within your budget later.

Visit www.feedthepig.org for more money-saving tips.

Saving Money at the Grocery Store

2010-07-19T15:17:00.002-04:00

Shopping for groceries is an expense everyone has to account for on their weekly or monthly budget, especially if you have taken Benjamin's advice and cut back on eating out. But there are some ways you can save money on your groceries and still purchase everything you need.

Store Circular: Read the circular from your grocery store, and other stores in your area, to plan what is on sale that you could use to make lunch or dinner this week. If there is a bargain to be had, remember to think about how much space you have to store it, whether it is a 12-pack of paper towels or a few pounds of apples.
Coupons: Do you have any coupons you can use? Clipping coupons is a great habit to start—and not just from your grocery store's weekly circular, but in the mail and online. There are many sites that offer coupons. Do a little research to find sites that work for your needs and offer products you use.
Shopping List: Make a shopping list before you go to the store, and include quantities for each item. If you need yogurt or oranges, how many do you need? Planning ahead is great, but not if your food will spoil before you use it.
Generic and Store-Brands: When you are at the store, remember to look for generic and store-brand items. They are usually less expensive for the same or similar quality product. If you are absolutely married to a specific brand for one item you need, how about generic products for other items?

Always remember to go to the store after you have eaten—you aren't going to be nearly as tempted by things that aren't on your list if you aren't hungry.

Debit Card Pointers

2010-06-01T19:03:00.000-04:00

For some, credit cards can be tempting and an easy way to get into debt. Some experts recommend using debit cards to help limit your spending and to ensure that you live within your means. However, debit cards can be dangerous too. Here are some tips to ensure that you use your debit card correctly.

Consider whether or not you want overdraft protection.
Starting in July, new federal regulations will prohibit banks from allowing customers to overdraft debit cards unless the customer specifcally opts into an overdraft plan. Consider whether you would rather have your card declined or whether you want to pay an overdraft fee. Fees can range between banks, but some fees are $30 or more. Ask if your bank will allow you to link your checking account to a savings account in case you do overdraft, rather than charging you the fee.

Know the difference when you choose "credit" or "debit."
These two options are very different and you should know the difference when you use your debit card to pay for your purchases. If you choose debit and enter your pin, the transaction usually happens almost immediately and deducts the money from your account. If you choose credit, the purchase may take several days to actually hit your account, which may make you think that you have more money in your account than you actually do.

Use a credit card for large purchases.
Credit cards can be useful to keep around, especially for large purchases. They offer more consumer protection for disputes or refunds. For instance, if you disputed a charge that was higher than it should be, credit cards have the ability to wipe the charge off your account. It would be more difficult to recover that money from a purchase with a debit card. Federal law says that you must notify your bank within two days of noticing a problem on your debit card.

Courtesy of: FeedThePig.org

Being Healthy Can Be Good for Your Wallet

2010-05-03T17:07:00.000-04:00

Courtesy of: FeedthePig.org

Now that the weather is getting nicer, many gyms and health clubs are offering membership specials and discounts to attract new members. Some health clubs offer benefit packages, such as discounts for cell phone service or car rentals. If you were considering joining a gym, now could be an ideal time to do so! Just make sure you read the fine print before joining—is your obligation for a month, a year or more? Will you be automatically renewed after the obligation?

For added financial benefit, check with your health insurance provider. Many give incentives, including cash back, for exercising a certain amount of times per month or year. If you exercise regularly, not taking advantage of perks like these is like saying "No, thank you!" to free money.

Be healthy and save even more money by quitting smoking, walking or biking to work and cooking your meals at home. For the cost of a meal out, you can purchase the makings to prepare several meals at home and ensure that the meals are healthy.

Living a healthy lifestyle and exercising regularly can help you avoid illness or disability that may prevent you from working and a potential loss of income. In addition, regular exercise is proven to improve your immune system and reduce stress. Consider this: health care is one of the biggest expenses of retirement, and the life decisions that you make now can pay dividends if they make you more healthy in the long-term.

Go "Green" to Save Some Green!

2010-04-19T17:14:00.001-04:00

Courtesy of: FeedThePig.org

Go "Green" to Save Some Green!

The very first Earth Day was 40 years ago in the spring of 1970. At that time, it was a grassroots event that raised concerns about the environment. In 2010, estimates suggest that more than one billion people in more than 190 countries will participate in raising awareness for the environment and implement personal changes to be more "green" on April 22.

Implement these green ideas and save money at the same time.

If you are a homeowner and have access to your hot water heater, turn down the temperature from 140 degrees to 120 degrees or lower. This can reduce your home heating bill by 6-10 percent.
Have a computer at home? Take advantage of your computer's "hibernate" setting when you aren't using it to prevent the computer from wasting energy. Even better, use a surge protector to turn it completely off. Some computer and television models continue to draw energy even if they are turned off.
It may seem trivial, but turn off your lights! Now that days are growing longer and brighter, keep your lights turned off unless you need them. If you leave a room, switch the lights off as you leave. The savings may be slight but can really add up over time. Consider adding a timer or motion sensor to your lights to make it more convenient so you don't even have to think about it.

Winter Savings Tips

2009-12-12T11:25:00.001-05:00

Courtesty of: feedthepig.org

This winter, keep your family cozy and your wallet insulated by following
these easy steps:

• Dial back your thermostat 1 degree cooler during the winter season to
help slash your energy bill.

• Caulk around window frames, door frames and seams on the outside
of the house to keep heat in and cold air out.

• Take advantage of your body's natural heat. Wear sweaters, warm socks
and long pants around the house.

• Use a programmable thermostat to automatically control your home's temperature. It can keep your house cooler during the day and warmer during the evenings. This could save you an average of $180 a year.

Following these tips can immediately reduce your energy costs. Learn
more Winter Savings Tips.

Maintaining Good Credit in Turbulent Times

2009-07-17T19:51:00.001-04:00

Courtesy of : FeedThePig.org

Sustaining a good credit score can be difficult when you are unemployed and money is tight. Here are some tips to maintain your financial health.

• Immediately evaluate expenditures, bills and financial accounts for strengths and weaknesses. Adjust your budget accordingly and minimize discretionary spending. Identify where you can lower or perhaps cut out expenses for entertainment, dining out and vacation or holiday travel.

• Contact your financial institution to inquire if it offers a hardship program. If so, you may be able to negotiate a payment plan that may include reduced interest rates and/or a lower monthly payment.

• Understand the impact that cancelling a credit card will have on your credit score. If the card is one that you've had for some time and consistently paid off, it could negatively affect your credit rating.

A credit score is based on your bill-paying history, debt profile and other statistical information. Lenders use this to determine the likelihood of certain credit behaviors, including whether you will pay on time. Closed accounts, liens, bankruptcies and late payments are a few of the financial missteps that can negatively impact your credit score for up to 11 years.

Summer Savings

2009-06-22T18:47:00.001-04:00

Courtesty of: FeedThePig.org

Summer Tip #1: To save on your air conditioning bill, turn off unnecessary lights during the day. Much of the energy used by incandescent bulbs is emitted as heat.

Summer Tip #2: To save 1-2 percent on your energy bill, unplug electronic devices and chargers when they aren't in use. Most new electronics use electricity even when switched off. Turn computers and printers off at the power strip.

Summer Tip #3: For a more energy efficient way to cook, use your microwave instead of your stove. Microwaves use two-thirds less energy than conventional stovetops.

Summer Tip #4: Consider replacing your incandescent bulbs with compact fluorescent light bulbs, or CFLs. They use about 75 percent less energy and give off 75 percent less heat but produce the same amount of light as incandescent bulbs.

Summer Tip #5: Make some shade! Awnings, blinds and drapes keep sunlight from entering your home. Install them on windows, skylights, doors, and other places where the sun comes through. During the day, closing the blinds and drapes to filter the sun will keep the room's temperature from rising.

Summer Tip #6: Planting trees in strategic areas can reduce the energy a house uses for cooling by up to 25 percent. Deciduous trees (that lose their leaves) help block the sun during the summer and still allow the winter sun to warm your home. Also, planting trees and shrubs around your air conditioning unit can increase its efficiency by up to 10 percent. Just make sure to place them at least 18 inches away so they don’t block the vents.

Summer Tip #7: “Summerize” your home by adding insulation and sealing air leaks around the house. Add insulation to the attic or add to already existing insulation. Weather-stripping and sealing drafty doors and windows will keep your house comfortable year-round and potentially save you hundreds of dollars.

Summer Tip #8: On a hot, sunny day, dark-colored roofs can reach temperatures of up to 150º to 190º F, heating the living spaces below. Consider adding a reflective coating to a dark roof, or choosing a lighter color when it’s time to replace the roof.

Summer Tip #9: Have an extra refrigerator in the garage that you’re not using? Unplug or recycle that spare refrigerator if you don't really need it, and it could save you up to 10 percent or more on your energy bill.

Summer Tip #10: Thinking about buying a new refrigerator? Refrigerators with a top or bottom freezer design can save you an additional 2-3 percent on your energy bill compared to a side-by-side design.

Money-Saving Ideas for Your Pets

2009-06-16T13:07:00.000-04:00

Courtesy of www.FeedthePig.org

In addition to being excellent companions, pets have been known to lower blood pressure and provide emotional support to their owners. However, all pets also require care and devotion. Here are some money-saving tips to help keep them
active and healthy.

• As an alternative to buying expensive dog toys at the store, consider buying toys at yard sales or using pet-safe items lying around your house and garage.

• Making your own pet treats can be fun, easy and inexpensive. Use your pet’s favorite foods such as peanut butter and apples, or use healthy ingredients such as oats, flax seed and whole wheat flour.

• If your pet requires constant medication from the pharmacy, wholesale stores such as Costco, Sam’s Club and BJ's may offer the medicine at a reduced price.

• Health insurance coverage is available for many kinds of pets and can be useful for covering unexpected expenses such as serious injuries or illnesses. Policies vary on premium costs and coverage, so take your pet’s age and health into consideration when researching the insurance that’s right for your wallet and your pet. Remember that pet insurance may not be the best, or most frugal, choice for everyone.

Visit www.FeedthePig.org for more money-saving tips.

Five Tips To Survive & Thrive In A Recession

2009-03-03T16:43:00.001-05:00

This Article is Courtesy of: Coupons.com

In this economy, everyone is trying their hardest to spend less and save more. However, if you've already cut corners, what's next? In a down economy there are ways to tighten your belt even more, even if it's on the last notch. Here are some ways to not only survive, but to thrive:

1. Live Below Your Means... and Save the Rest

Pay down debt and build up the emergency fund. In times like this, it's more important than ever to have a little extra wiggle room in your budget. If you're cutting it too close each month - or going over - you may need to reevaluate your big expenses.

Move to a more affordable home
Trade in your car for a less expensive, more fuel efficient model
Create a budget to stay on track
Have money automatically deducted from your paycheck and put into your savings account

2. Limit Shopping

The less you drive, the less you'll spend on gas. That's a no-brainer. However, staying out of the stores and really planning your errands will help you limit impulse purchases, too. Plus, by staying out of the stores you'll have loads more time to do other things.

Shop at a store that will match prices so that you can eliminate unnecessary trips
Stop perusing the store circulars that come in the Sunday paper to avoid temptation
Take yourself off email lists for stores that encourage needless spending. Or, set up a filter/rule in your email client to automatically put shopping emails in a folder so you look at them only when you are planning to shop
Plan meals for the entire week before you go shopping, and print coupons from Coupons.com to match your list

3. Be Resourceful Every Day

Tap into your creative side to look at what you have in a new light. You'll be forced to use your imagination, which will give you insight into something's hidden potential. You'll also experience a deeper level of satisfaction when creating something out of nothing or repurposing something to give it a new life. There's another great byproduct: you'll save lots of money!

Try bartering for the things you need on the Mommysavers Bartering Board
Exchange services with friends and neighbors
Clip coupons online from Coupons.com - they're free and available all the time
Pair coupons with grocery store sales to save even more
Make homemade cards and gifts instead of purchasing them
DIY: Make your own cleaning products, grow your own produce, make your own minor repairs, etc.
Investigate free activities within your community and make a calendar to share with friends

4. Less is More

Sometimes less really is more. Consider subtracting some things from your budget and adding quality of life - and some cash. The things that provide the most satisfaction in life are usually free. Deepening relationships with family, spending time with friends, participating in community, plus doing things that stimulate us intellectually and spiritually all contribute to quality of life without draining our pocketbooks.

Instead of going out to a restaurant, invite friends to your house for a potluck dinner
Unplug the cable and start reading more books, borrow DVDs from the library or watch shows online
Ditch your landline phone completely
Declutter your home and sell what you don't need on Craigslist, eBay or at a rummage sale
Avoid over-scheduling your kids and institute a family game night instead

5. Give

Finally, count your blessings. Even during a recession, we still live in the wealthiest country in the world. If you can afford to reach out to those less fortunate, now is a great time to do it. Nothing will make you feel wealthier, and you can give your time even if you can't give your money.

Volunteer your time at a food pantry
Make a meal for a family who has lost a job
Sponsor a child in a developing country

Be a Savvy Shopper

2009-02-09T15:49:00.001-05:00

Courtesy of: FeedThePig.org

Be a Savvy Shopper

In today's economy, it's important to assess your needs versus wants before making a purchase. Is it something you really need or something you simply want to purchase? But remember, looking at needs versus wants alone may not be enough to keep your wallet happy and healthy. Here are some quick and easy shopping tips which may boost your savings at the end of the month:

Beware of no interest or low monthly payment offers on large items. Missing a single payment could increase the interest rate and potentially wipe out any money saved by buying this item on sale.

When comparison shopping, don't get distracted by how much an item has been marked down. Look at the current price and compare that with other similar items.

Considering a big ticket item? Remember to factor in additional expenses that may not be included in the ticket price, such as storage, transportation or an insurance increase.

Following these tips can help you shop smarter and save more. And always remember to contribute a portion of any savings to your retirement fund every month.

Supplementing Your Income

2009-01-20T18:12:00.000-05:00

Courtesy of: FeedThePig.org

Supplementing Your Income

If you've reduced your monthly expenses but still find it hard to save each month, consider additional sources of income—which doesn't always mean working a second job on the side. Look for income sources that are flexible, sustainable and enjoyable. Here are some ideas:

Become a virtual assistant – Virtual assistants are individuals hired to perform duties online that don't require a physical presence, such as conducting research, designing websites, writing articles and making reservations.
Start a home business – Turn your skills and hobbies into an additional income source. Home businesses are often inexpensive to start and easy to grow and promote via the Internet.
Write a blog – Earning a little extra money can be as easy as blogging from your home. With free or low-cost blog publishing tools, you could turn a small time investment into extra savings.

There will always be opportunities to earn extra cash. Research these and other methods of earning supplemental income to help feed your emergency fund and retirement savings. Read more on keeping an emergency savings account.

Clean the Slate for a New Year

2009-01-05T16:52:00.000-05:00

Courtesy of: FeedThePig.org

Clean the Slate for a New Year

With the start of a new year comes the chance to leave behind any bad money habits from 2008 and start fresh with your financial goals. One of the most important things you can do to jumpstart the New Year is to take time to assess your finances. Here are some simple tips to set you on track for a financially successful year:

If you can't afford it, don't buy it.
Create a monthly budget and stick to it.
Live within your means: evaluate your finances, and cut back on unnecessary expenditures. This can dramatically reduce your incurred debt.
Keep up to date with your monthly payments, such as those for a student loan and mortgage. Missing a single month could cost you thousands of dollars in interest down the road.
Reassess your life and car insurance policies. You could potentially save money by switching to a different company.

Commit to these and other positive financial behaviors. In one year from now, you'll look back and commend yourself for setting those goals for a successful financial future. For more information, read eight steps for rebuilding your finances.

2009 Tax Tips

2008-12-29T15:48:00.000-05:00

2009 Tax Tips

With your 2008 tax return due just around the corner, it's time to brush up on those tax skills. Here are some helpful hints that may help you when filing your return:

If you are self employed, open and fund an SEP-IRA before filing your tax return. You can claim the deduction in 2008, even if you make a contribution to the plan in 2009.
If you don't normally itemize your deductions, consider "bunching" expenses every other year to exceed the standard deduction.
Estimate your federal and state tax liabilities. If you didn't withhold enough, increase your withholding for this year's last few paychecks.
To exempt yourself from any penalty for underestimating Federal or state taxes, it is critical is that your withholdings of federal or state taxes meet one of the following:

at least equal to 90% of your tax liability for 2008
at least the same as your 2007 tax liability.

If you estimate you will owe state taxes, you can chose to prepay those before January 1, and increase your itemized deduction for 2008.

401K – 3 Things to do Before 2009

2008-12-22T15:12:00.003-05:00

Courtesy of : FeedThePig.org

401K – 3 Things to do Before 2009

No matter what the markets are doing, the end of the year is always a good time to assess your retirement plan. To ensure you don't miss out on retirement planning opportunities, review this year-end checklist and complete as many items as you can by December 31, 2008.

Update Your Beneficiary
Beneficiary designations are a guarantee that any benefits payable on your behalf after your death will be made to the individual of your choosing and in the manner you wish. To be certain that only your intended beneficiary does, in fact, receive your benefits in the event of your death, make sure to update your electronic beneficiary designation.

Increase Your Contribution Rate
The end of the year is a great time to increase your contribution rate – even by a small amount! Putting away a small percentage of your earnings now gives you a head start on your retirement savings.

2009 IRS Maximum Contributions
You can contribute up to $16,500 before taxes are deducted and an additional $5,500 catch up contribution if you will be age 50 or older in 2009.

Motivating Yourself to Save

2008-12-15T15:09:00.004-05:00

Courtesy of: FeedThePig.org

Oftentimes, learning new methods to reduce spending and save money are not enough to change habits by themselves, and you may find yourself reverting back to old behaviors before you know it. Motivating yourself to save requires setting goals and constant visual reminders of those goals. Here are some useful tips:

Write down your financial goals and do research to find out what you need to do to get there. Set realistic timelines for achieving these goals.
Don't be afraid to choose goals such as a new home or car. These big tickets items can stimulate your savings attitude and financial motivation.
Create visual reminders of your goals and attach them to places such as the walls in your room, the dashboard of your car, or the background on your computer.

Along with continually learning of new ways to save, following these goal-setting tips will help you realize your dreams.

Frugal Gift Ideas

2008-12-08T16:46:00.001-05:00

Looking for gifts that will show your appreciation but not empty your wallet? The holidays can sometimes set people off-track from meeting their goals for a successful financial future. But even small gifts can make a big impact, and with the money left over, you can make a healthy contribution to your savings. Here are some penny-pinching ideas:

Handmade gifts are unique and easy to make. Consider creating personalized gifts such as: ornaments, tote bags, candy/cookie jars and gift baskets containing food and personal care items.
Magazine subscriptions are gifts that give year-round. They are inexpensive and can be easily tailored to any person's interests. Search around and you may be able to find subscriptions for under $5.
Give a recycled gift. Perhaps you have an old trinket that would make a perfect gift for someone else. These sentimental gifts can last a lifetime.

Being frugal and saving are gifts in themselves, ones that will pay off in the future. Share your holiday money-saving tips on the new Feed the Pig discussion forum, or read more on reducing your spending.

Setting Expectations During the Holidays

2008-12-01T15:55:00.002-05:00

Courtesy of: FeedThePig.org

Today's tough economy can provide a great opportunity for you to teach your children some powerful lessons about money and spending during the holidays. Help them learn the value of prioritizing by asking them to choose the top 3 items on their wish list. Doing so will help them identify the gifts they truly want. Remember too, when fulfilling a child's desire for gifts, it's easier to under-promise and over-deliver.

Families can steer away from pricey gifts by creating traditions such as cookie bake-offs, inexpensive family grab bags and pick-a-name gift exchanges.

For more information, read Teaching Your Child About Money.

Visit the new www.FeedthePig.org for more money-saving tips.

Safeguarding From a Closing Brokerage Firm

2008-10-20T15:23:00.002-04:00

In light of the current economic crisis, it's important to educate yourself on the stability of your investments and where they will relocate if your
brokerage firm closed its doors for good.

In virtually all cases, when a brokerage firm ceases to operate, customer assets are safe and typically are transferred to another registered brokerage firm. Multiple layers of protection safeguard investor assets. Registered brokerage firms must keep their customers' securities and cash segregated from their own so that, even if a firm fails, its customers' assets will be safe.

Spending Less on Everyday Items

2008-10-16T23:02:00.002-04:00

Courtesy of: FeedThePig.org

Families often find themselves spending more than they realize but still find it hard to cut corners when trying to save. Here are some suggestions to help decrease your expenses and increase your savings:

• Forgo buying bottled water, get a water filter and drink tap water.

• Do without name brands and buy store brand
“generics” of the same thing.

• Skip the bakery goods and make your own breads and
cookies. Freeze extras.

Read more on How Your Family Can Spend Less.

Economic Stabilization Act of 2008

2008-10-14T21:29:00.002-04:00

Courtesy of : FeedThePig.org

The Emergency Economic Stabilization Act of 2008, commonly referred to as the 'bailout' or 'rescue' bill of the U.S. financial system, is a law authorizing the United States Secretary of the Treasury to spend up to $700 billion to purchase distressed assets from the nation's banks. The act is aimed at providing stability to and preventing disruption of the economy and financial system, and protecting taxpayers.

What this could mean for you and your savings: the new act contains many provisions which will offer tax breaks to individuals and businesses. Provisions include:

Extension of mortgage forgiveness
Application of tax relief to certain disaster areas
Tax credit for electric vehicles
Extension of deduction for state and local taxes
Deduction for teacher's classroom expenses

The Emergency Economic Stabilization Act of 2008

On October 3, 2008, President Bush signed H.R. 1424, the Emergency Economic Stabilization Act of 2008 (the "Act"). The Act, often referred to in the media as the "bailout" or "rescue" bill, is a legislative package that is made up of the Troubled Assets Relief Program (TARP), the Energy Improvement and Extension Act, and the Tax Extenders and Alternative Minimum Tax Relief Act.

Financial Bailout Provisions

Authorization of government to purchase troubled assets: The Act creates a new Troubled Assets Relief Program (TARP), which authorizes the federal government to purchase "troubled assets" (which includes residential and commercial mortgages, and securities, obligations, or other instruments that are based on or related to such mortgages) from financial institutions either directly or through auctions.

Imposition of limits on executive compensation: In a case where the Treasury Department purchases troubled assets directly from a financial institution, the Act allows the Treasury to set compensation standards, prohibits golden parachutes, and allows the Treasury to recover "unearned" bonuses previously paid out. In cases where a financial institution sells more than $3 million through the TARP program, and participates in an auction purchase, the Act limits the annual deductible compensation to CEOs, CFOs, and other executives to $500,000, and limits golden parachutes.

Allowance of ordinary income tax treatment for Fannie Mae and Freddie Mac preferred stock losses: The Act allows specified financial institutions to treat losses incurred in the sale or exchange of preferred stock in Fannie Mae or Freddie Mac as ordinary losses. This treatment generally applies to the sale of preferred stock held on September 6, 2008, or sales or exchanges of preferred stock on or after January 1, 2008, and before September 7, 2008.

Extension of mortgage forgiveness exclusion: The tax code generally treats cancelled debt as taxable income. The Mortgage Forgiveness Debt Relief Act of 2007 excluded from gross income discharges of up to $2 million of indebtedness ($1 million if married filing separately) secured by a principal residence and incurred in the acquisition, construction or substantial improvement of the residence. The Act extends this exclusion from December 31, 2009, to December 31, 2012.

Temporary increase in FDIC insurance amount: The Act increases the FDIC and Credit Union Share Insurance Fund deposit insurance limit applicable to depository institutions and credit unions from $100,000 to $250,000. The increase will be in effect only until December 31, 2009.

AMT Relief

Another AMT "patch": The Act includes another AMT patch for the 2008 tax year. Consequently, for 2008 only, the AMT exemption amounts are $69,950 for married couples filing jointly and surviving spouses, $46,200 for single taxpayers and heads of household, and $34,975 for married couples filing separately. Further, for 2008, taxpayers can continue to apply nonrefundable personal tax credits to reduce AMT liability as well as regular federal tax liability. Additionally, the Act accelerates the application and refundability of unused long-term minimum tax credit, and provides specific relief for AMT liability that results from the exercise of incentive stock options (ISOs).

Extended Tax Breaks-Individuals

Extension of additional standard deduction: The Act extends a provision allowing an additional standard deduction for real property taxes paid by taxpayers who do not itemize that was enacted earlier this year by the Housing and Economic Recovery Act of 2008. The amount of the deduction is the lesser of the amount allowable as a deduction of state and local real property taxes, or $500 ($1,000 for married persons filing a joint return). The provision was set to expire at the end of 2008, but is now extended through 2009.

Extension of deduction for state and local taxes: The Act further extends a provision originally enacted as part of the American Jobs Creation Act of 2004, and extended through 2007 by the Tax Relief and Health Care Act of 2006, that allows individual taxpayers to elect to take an itemized deduction for state and local general sales taxes instead of the itemized deduction for state and local income taxes. The Act extends this provision through 2009.

Extension of deduction for qualified higher education expenses: The Act extends the above-the-line deduction for qualified tuition and related expenses through 2009. The maximum deduction is $4,000 for taxpayers with an adjusted gross income (AGI) of $65,000 ($130,000 for married persons filing jointly) or below, and $2,000 for taxpayers with an AGI of $80,000 ($160,000 for married persons filing jointly) or less. Taxpayers whose AGI exceeds those amounts are not entitled to a deduction.

Extension of deduction for teacher’s classroom expenses: There is an above-the-line deduction for up to $250 annually for classroom expenses paid for or incurred by an eligible educator for books, supplies, computer and other equipment, and other supplementary materials. The Act extends this deduction through 2009.

Extension of tax-free distributions from IRAs for charitable purposes: The Act permits taxpayers to make tax-free distributions of up to $100,000 from IRAs for charitable purposes through December 31, 2009. This provision had previously expired December 31, 2007.

Modification of refundable child tax credit: The Act lowers the 2008 earned income threshold for purposes of the refundable portion of the child tax credit to $8,500 (from $12,050).

Tax Provisions-Businesses

Extension and modification of R & D tax credit: The Act extends the research and development tax credit to cover expenses paid or incurred on or before December 31, 2009, and increases the alternative simplified credit from 12 percent to 14 percent of qualified research expenses that exceed 50 percent of the average qualified research expenses for the three preceding tax years.

Extension of renewable energy tax credit: The Act modifies the credit and extends the placed-in-service period through the end of 2009 for qualified wind facilities. The placed-in-service period for other energy sources such as geothermal, closed-loop biomass, hydropower, landfill gas, and trash combustion facilities is also extended through December 31, 2010. The Act also creates a new energy production category--marine renewable--which is energy derived from waves, tides, and currents.

Extension of FUTA surtax: The bill extends the Federal Unemployment Tax Act (FUTA) surtax of 0.2 percent through 2009.

Extensions of other business tax incentives: The Act extends though 2009 several business tax incentives including:

-Indian employment tax credit

-New market credit

-The 15-year straight-line cost recovery for qualified leasehold improvements and qualified restaurant property

-Deduction for charitable contributions of food inventory

-Deduction for charitable contributions of book inventory to public schools

-Deduction for corporate contributions of computer equipment for education purposes

-Qualified Zone Academy Bonds

-Rehabilitation tax credit for Gulf Opportunity (GO) Zone buildings

-Work opportunity tax credit for employers who hire employees who were affected by Hurricane Katrina is extended through August 28, 2009

Energy Incentives

Extension and modification of residential energy tax credits: The Act extends the tax credit for residential energy-efficient property from 2009 to 2016. The Act removes the $2,000 maximum limit on solar electric property. Further, the Act adds new types of equipment that qualify for the credit: (1) wind energy equipment, which qualifies for a tax credit of up to 30 percent of the cost, capped at $4,000, and (2) geothermal heat pumps, which qualify for a credit of up to 30 percent of the cost, capped at $2,000. Additionally, the residential energy conservation property credit, which provides a credit of up to $500 for purchasing energy-saving products, such as windows, insulation, and HVAC systems is extended through 2009. The Act adds two new types of improvements that qualify for the credit: (1) biomass fuel stoves with a thermal efficiency rating of 75 percent or more, and (2) asphalt roofs with cooling granules. The Act also clarifies that water heaters must have either an energy factor of at least 0.80 or a thermal efficiency rating of at least 90 percent to qualify for the credit. Note, however, that while the credit is worth up to $500 for various improvements, the credit is limited to $200 for windows and to $300 for biomass fuel stoves.

Creation of tax credit for electric vehicles: The Act creates a new tax credit of $2,500 to $7,500 for plug-in electric vehicles. The credit will start to phase-out after 250,000 qualifying electric vehicles are sold. Vehicles that qualify will need to be certified under the Clean Air Act and meet the California low-emission standards. Higher tax credits are also available for electric vehicles with gross vehicle weight ratings of more than 10,000 pounds.

Creation of tax-free fringe benefits for bicyclists: The Act provides a new tax break for people who commute by bicycle. Employers can provide a tax-free fringe benefit of up to $20 per month to cover "reasonable expenses incurred by the employee" for the purchase, improvement, repair, and storage of a bicycle that is regularly used to commute between the employee's home and office. This bicycle fringe benefit will begin in 2009.

Disaster Relief

Temporary tax relief for areas damaged by 2008 Midwestern severe storms, tornados, and floods: The Act applies and modifies certain GO Zone and Hurricane Katrina tax relief measures to the "Midwestern disaster area." The term "Midwestern disaster area" means: (1) an area declared a major disaster area by the President on or after May 20, 2008, and before August 1, 2008, by reason of severe storms, tornados, or flooding occurring in any of the States of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, and Wisconsin, and (2) determined by the President to warrant individual or individual and public assistance from the federal government for damages attributable to such severe storms, tornados, or flooding.

2008-08-25T19:47:00.000-04:00

Courtesy of www.FeedthePig.org

Back to School And Back to Saving

With school starting, now is a good time to introduce your child to the benefits of saving. Here are some tips to help teach young children the importance of smart money habits:

Let your child set their own savings goals. Encourage your child to
divide up their money: some to put toward their goal, some
for charity and some to spend right away.

Offering them an allowance gives them their first taste of financial freedom. Experts recommend 50 cents to a dollar for each year of age.

Opening a bank account is a good way to introduce children to the concept of saving.

Saving vs. Investing

2008-06-09T16:27:00.001-04:00

Courtesy of : FeedThePig.org

Saving vs. Investing

If you've been following these weekly tips and saving a little each month, consider investing a portion of your savings and allow it to work for you. Short-term investing can be used for various reasons: preparing for an emergency, anticipating an upcoming expenditure, or waiting for better investment opportunities.

Long-term investing enables you to maximize your wealth by giving you the advantage of time and the power of compounding. For more information on long-term investing click here.

Cutting Costs When Grocery Shopping

2008-06-02T17:14:00.000-04:00

Courtesy of: FeedThePig

Cutting Costs When Grocery Shopping

The USDA expects food prices to rise another 4% to 5% this year alone! Even with the rapidly rising cost of food, you can cut costs on your grocery bill. Here are some thrifty ideas:

Reviewing store circulars to identify sale items
will help save you money.
Making a list before you shop to ensure buying only what you and your family will eat before any fresh foods go bad.
Buying locally grown produce generally costs less because the grower has a shorter distance to ship and their stock is usually in greater supply.
Buying in bulk gives you the flexibility to buy the amount you need and reduces costs on money that would otherwise be spent for packaging and advertising. This means savings
for you in the long run.

National Teach Children to Save Day

2008-04-29T23:10:00.005-04:00

Courtesy of: Feed The Pig

National Teach Children to Save Day

Today is National "Teach Children to Save" Day, sponsored by the
American Banking Association. It is never too early to start teaching
your children about money and the importance of saving.

Begin by giving your young child a small weekly allowance and
explaining the concepts of saving, spending, and giving. Providing a monthly allowance to an older child is one way to teach budgeting
and money management.

National Car Care Month

2008-04-07T15:29:00.005-04:00

Courtesy of FeedThePig.org

Here are some quick tips that will save you a lot of money!!!

In addition to being National Financial Literacy month, April is also National Car Care Month. Simple, at-home maintenance will save you money in the long run. With gas prices at record highs, every little bit counts. Consider these two tips that may improve your gas mileage and save you money!

1) Check your tire pressure.
Most recommendations range from 27 to 32 psi; check your owner's manual to find out what is best for your car.

2) Check your air filters.
Replacing a clogged air filter may improve your gas mileage by as much as 10 percent.

Why Eating In Is the Productive Choice...

2008-03-07T08:55:00.001-05:00

You can move toward achieving many of your goals by Eating In rather than Eating Out! Last post we listed why Eating Out Is Counter Productive. This week let's look at why Eating In is the productive choice. This all starts with your goals and defining being productive as progressing in the direction of those goals. The most frequently seen personal goals related to this article are:

Lose Weight
Get Out of Debt
Save for something
Get in Shape
Reduce Stress
Eat Well

When eating in you have a much better chance of losing weight because you can make choices on what you ingest rather than eating what others put in the food that is put in front of you at a restaurant. Eating in and grabbing convenience foods or take out (for those of you defining eating in as eating anything at home) are bad choices. Having an abundance of healthy food is a good choice and easy at home. For those who don't have time to go shopping – you don't have to. Many grocery stores across the nation will deliver groceries including fresh produce right to your door.

In this era of shopping online it's a natural process. So, order your veggies, lean meats or fresh seafood, pasta, bread and fruit and eat well by Eating In.

Note: Beyond the convenience factor of having your groceries delivered to your home you avoid one of the biggest fat traps in the grocery store – the impulse buy. You eliminate the opportunity to buy that bag of fried food that is a great price and on the end cap attracting your appetite and wallet because you don't see it when you shop online.

Getting out of debt and save for something is also supported by Eating In. Eating In is far less expensive than eating out and the money you don't spend on eating out could go right into paying down your debt. Let's look at a bowl of soup for an example. Ordering a bowl of homemade-style split pea soup at a restaurant is going to cost you typically $4.50 plus a 15% tip results in a $5.17 bowl of soup. When you make a big batch of real homemade split pea soup at home, 6 servings will cost you somewhere near $8 ($1.25 per serving) to make. Savings: $3.93. Multiply that times just one meal per week and you're keeping $204.10 per year in your pocket.

You will create time to get in better shape by staying out of restaurants. Typical meals served by a waitress take an hour at least and up toward two hours for a leisurely meal. Eating in could take less than 30 minutes from prep to clean up. In our soup example that would be a meal where you made the soup on another day and heated it up today, sliced some wonderful crust bread that was delivered by your grocery store this morning, and throw the dirty dishes in the dishwasher when you're done. That time not spent in the restaurant could now be spent in the gym, on a walk, or other activity that keeps you moving.

Stress reduction from eating in could be the result of you not having to block such a big amount of time away from doing your other priorities. That is to say you will have more time to spend with your kids doing homework, taking care of yourself, getting a pet project completed, and doing something you enjoy like getting a massage to literally reduce your stress. As your humble author, I engage in stress reduction activities from biking to cooking rather than eating out often.

Why Eating Out is Counterproductive...

2008-03-07T08:54:00.000-05:00

When time is short eating out seems to be the answer. But, eating out is counterproductive. That is to say that eating out is inhibiting you from attaining your goals rather than supporting you in reaching them. So, we should start with understanding what goals are being thwarted by eating out. Here are popular goals related to this article:

Losing weight (we're just 35 days from the infamous #1 New Year Resolution)
Building savings for anything from a vacation to buying a new vehicle to retirement
Eliminate debt
Get in shape
Eat Right
Reduce Stress

For lists of more goals see: USA.gov and RIS Media.

Linking each goal to the counterproductive impact eating out has looks like this:

Losing weight is foiled by eating out because restaurant food tends to emphasize the taste and not the nutrition. Hidden calories and irresistible temptations abound in restaurants. Additionally, people tend to drink weight-adding calories

while sitting in a restaurant for service.
Eating out at modest restaurants tends to cost twice to five times as much as eating a home. Although we love our coffee at the Productivity Cafe, this is vividly illustrated in a simple calculation on the cost of a cup of coffee at home vs out. Say a pound of good coffee (Starbucks Casi Cielo used in this example) costs $13 and you can make 35 cups from that pound. The cost per cup is: $0.34. Paying $1.50 for a cup out is $1.16 over making it at home or $312.50 per year. That is $4,119 every ten years. Go to the hugh's coffee calculator for your own savings. Now multiply one cup of coffee times multiple cups, full meals, soda, and other foods in your life.
In addition to point 2 above, these little expenses add up to money owed versus money saved or applied to reducing debt.
Getting in shape does not happen when eating out. Typically people spend just under an hour at restaurants during lunch hour and 1½ or more for dinners. That compares poorly to whipping up something in your kitchen for a fraction of the time (including shopping since you can shop for a week's worth of meals in one trip). So sitting around in a restaurant consumes loads of time diminishing your fitness and keeping you from activity which would enhance your fitness whether it's walking around the neighborhood or working out with your trainer.
Eating right or healthfully is tremendously difficult when eating out. First of all you don't know what is in the food so it could be good stuff or bad stuff. Secondly portions in America are geared to satisfy a 200+ lb. person so if you don't want to be 200+ pounds, you're getting served tpo much when you eat out and you're probably eating it. And eating at home you know clearly what ingredients are going into your recipes and can make healthful choices easily.
Eating out can increase your stress if you're busy because that becomes one more thing that you have to do. It's more time that evaporates rather than having a return on your investment of time.

For ways to make eating time less unproductive time, come back next Monday.

How can I reduce my auto insurance bill?

2008-03-05T15:00:00.000-05:00

How can I reduce my auto insurance bill?

Answer:

Insurers usually base their auto insurance rates on criteria such as your age, driving record, and the type of car you drive. Rates vary from company to company, however, so a good way to save money is to shop around--you may find that another insurer offers the same coverage at a lower rate.

Some of your coverages may be subject to deductibles (money you must pay before your insurance kicks in). Raising your deductibles can also help you save money. For the most part, the higher your deductibles, the lower your premiums. Before you raise a deductible, though, you'll want to be sure you can cover the out-of-pocket expense should an accident occur. Are you more concerned with lower premiums or full insurance coverage?

Many insurance companies offer credits or discounts. For example, an insurer might provide discounts to those who have safe driving records or to those who insure more than one car with them. Check to see what types of credits and discounts your insurer offers.

To save money, you may also want to rethink your optional coverages. For example, if you have an older car in poor condition, it may make sense to drop your collision and comprehensive coverage if possible. A claim paid by your insurance company on such a car may be minimal and might not even exceed what you'd pay in premiums and deductibles.

Clean Your House For Less...

2008-02-28T23:33:00.002-05:00

This is just a quick tip I thought I would share with you. Everyday, I use white vinegar for numerous things around the house. I clean counter tops with it, toilets, and add it to laundry to keep colors looking great! Try it, it is cheap and works just as great, if not better than any expensive cleaner I have used.

What is your "VICE?" What do you spend a lot of money on?

2008-02-28T23:22:00.002-05:00

I love to spend money as much as the next person; however, there are my favorite things, which I refer to as "vices." My vices include skin care products, lip gloss, the latest jeans - clothes, and hair care products. Those are just a few of my favorite things. What are a few of your favorite things that you absolutely feel you must buy?

America Saves Week

2008-02-25T16:59:00.001-05:00

During America Saves Week, February 24 - March 1, individuals are
encouraged to assess their savings progress and take action to develop and advance personal savings. If you only have a checking account, consider opening up a savings account this week. Saving a portion of
every paycheck? Review your finances and areas in which to reduce
spending to double the amount you save. The America Saves Web site is an excellent resource for additional tips and advice to help you set
aside more.

Does Money Burn a Hole in your Pocket?

2008-02-23T21:35:00.003-05:00

Do you have an urge to splurge anytime you have some extra money?
Does your spouse or partner complain that you're spending too much money?
When your credit card bill arrives, are you surprised to you find that you charged more during the month than you thought?
Does your closet contain lots of shoes or clothes that you almost never wear?
Do you own every gadget known to man (or woman)?
Do you come home from the mall with items you had no intention of buying?
Do you spend money on things that you didn't realize you needed until you saw them on display in the store?

If you answered yes to one or more of these questions, you probably suffer from impulse spending. When people are unable to save money for the things that are really important to them, like a house, a new car, a vacation, or retirement, impulse spending is often the culprit.

If you don't have specific financial goals, it's more difficult to resist spending money on items that don't really have any meaning to you.

Once you're already saving regularly towards your most important financial goals, you may want to have a fund to use specifically for occasionally spending money on unplanned items. Then you can indulge in occasional impulse spending without jeopardizing your financial future.

Impulse spending, or recreational shopping, can put a strain on both your finances and your relationships. To overcome the urge to spend money, learn to recognize your needs from your wants. We're constantly bombarded with messages from advertisers who appeal to our psychological needs to tempt us into spending money on things we want but may not need. Allow a cooling-off period before spending money on anything you haven't planned for in advance.

One method of controlling your spending that works well is to carry an index card in your wallet. When you see something you want to buy, write it on the card. Force yourself to wait two weeks (or any other period of time you set for yourself, but at least a week) before spending the money on this item. During this cooling off period, if you see something else you want, add it to the card. However, you can never have more than three items on the card at any one time, so to add a fourth item, you have to remove one of the other items from the list. If you're an impulse spender, you'll find that you're frequently crossing items off to make room for the newest "must have" thing.

Another good rule to adopt is to pay cash whenever possible. When you go shopping, leave your credit cards at home. Most impulse spenders use credit cards more often than not. When you use credit cards, the reality of the amount of money you're spending and how you're going to come up with that money, is suppressed. When you pay with cash, it feels like you're spending "real" money.

Learn to recognize wants from needs, and practice controlling your impulses to spend your money on things you don't really need, and you'll be able to change your spending habits and end up far ahead financially.

Did you know???

2008-02-08T10:30:00.000-05:00

Did you know that you can stretch your shampoo further??? If you mix your regular shampoo with organic apple vinegar cider, your shampoo will last longer, and you will have cleaner, shinier hair.

Did you know?

2008-01-28T16:38:00.002-05:00

Did you know?

The U.S. Congress is currently reviewing a economic stimulus package that may provide tax payers a rebate of $300-$1200, depending on one's tax bracket and claimed dependents. While the package has not passed yet and the funds probably will not arrive for several months, the unexpected check from Uncle Sam may be your ticket to jumpstart
your savings.

Consider using unexpected income like a tax refund to pay off debt or increase your savings.

Snag Every Supermarket Bargain

2008-01-21T15:47:00.000-05:00

To find offers that will shave big bucks off your next shopping trip: Log on to http://www.mygrocerydeals.com and type in your zip code for free access to local circulars. Then build a shopping list that includes the steals you cannot afford to miss!

Save MORE Money At The Gas Pump!

2008-01-21T15:41:00.000-05:00

1) Keep your car in tune!
-It may seem like a nuisance to take your car in for a $50 tune-up twice a year, but regular maintenance will improve fuel efficiency, helping you save up to 20% at the pump.

2)Cut the idling!
-Letting your car idle for more than one minute, for instance, while waiting for the kids to get out of school, burns more gas than re-starting the car.

3)Go with cost-cutting tires!
-Need new tires? Opt for radials over traditional bias ply tires, and you will save up to 6% on fuel costs! Radial tires create less drag on the car, which means your car uses less gas.

Ten Ways to Save Money

2008-01-13T15:38:00.000-05:00

Courtesy of: Money Instructor

You probably think that you can't possibly save any more money than you actually do. You live pretty much paycheck to paycheck, like the rest of us, and your meager savings is for emergencies only.

This article will provide you with a few tips to begin saving more than you thought possible, and the first trick is to rethink your spending habits!

In order to get a good idea about your spending habits compared to a society who was bent of frugality (out of necessity) you can go online and find out what saving during the depression and the war was like. Ever wonder why your Grandma saved aluminum foil and wrapped it back around the roll? My Grandmother rinsed out Ziploc baggies and turned them inside out, dried them in the dish drainer and reused them. Now I know why. Do a little research, and if you'd like, do a little research on how all the things we throw away (especially clothing) ends up in landfills and hurts the environment.

Okay, enough said about that. One of the best ways to save money is to never see it. That's where direct deposit comes in. when you sign up for direct deposit through your company, you can designate that some of your money go directly into your savings account. After working up a realistic budget, you can choose the amount and you don't have to think about it again.

Did you have a parent who threw all their change into a jar or tray each night? It's a great way to save up money. You can even get a cool, beautiful jar (at a garage sale, please, not Pier One) and make a game of filling it up. The Coinstar machines at your grocery store alleviate the need to roll your change before cashing it in, as well.

Did you know that when you over pay your taxes that you are in effect loaning the government your money-- tax-free? Just once, instead of doing your own taxes, take a tax company up on their offer to recheck past tax papers when you hire them to work out this years refund. And ask them for advice on how to save on taxes (legally).

If you raise the deductible on your insurance, your premiums will drop. Interest rates for home owners are low right now; maybe it's time to look into refinancing. Those are big expenses that you can save on. There are little expenses that chip away at money you could be saving, too. Late fees for movie rentals, ATM surcharges, That Latte you buy every morning along with your paper? Buy an espresso machine, and have the paper delivered and take them both with you out the door. You may have to get up a little earlier but that never hurt anyone. (Being caught in the rain because your car broke and you don't have bus money because you bought another latte is kind of a drag, though…)

One more:
Barter. If you like to paint and your neighbor spends a lot of time in her garden, exchange chores. Hire the neighbor boy to mow the grass, not some landscaping company! Okay, that was two, but you get the idea.

Get some cash for your used clothes...

2008-01-06T23:43:00.000-05:00

Have you ever thought about selling the clothes that you no longer wear? Well, start thinking about it now!!! The consignment shop Plato's Closet will give you $$$cash$$$ for your gently used clothes. CLICK HERE to find the closest location to you!

Holiday Savings Accounts

2008-01-01T13:06:00.000-05:00

As the holiday season comes to an end, are you looking at a pile of credit card receipts and wondering how to pay them off? It's never too early to start saving for next year so this does not happen to you.

Many banks offer special Holiday Savings Accounts that you can contribute to periodically or can set up to automatically withdraw funds from your paycheck. Or, when you plan your budget, be sure to include savings for next year's holiday season or any other event that you can anticipate (e.g. birthdays, anniversaries, etc).

A Guide to Holiday Shopping

2007-12-17T20:40:00.000-05:00

Set a Holiday Budget - A recent survey found that 44% of Americans don't set holiday spending budgets and, of those that do, 12% expect to exceed it.

Establish your budget before you head to the stores; decide for whom you're going to buy and assign a dollar amount to each person. Keep the list you create with you when you shop and stick to it. A little planning beforehand will help you keep your financial wits about you.

Make sure there's still money in the bank for your savings after this holiday season.

General Money Saving TIps

2007-12-04T22:08:00.000-05:00

Distinguish between Wants and Needs: You will save a ton of money if you don't mistake wants for needs. Needs are pretty simple to identify--those items that are necessary to sustain: Shelter, food, clothing, transportation. Wants are those things that enhance or possibly improve our family life. A car is a need. Unless necessary for your business, a $40,000 Sport Utility Vehicle is a want, even if a lot of people don't see it that way. Have you ever heard (or said) "I absolutely need...?" when the actual meaning was "I really want?" This is not to suggest that you shouldn't be able to have the things you want--only that to delude yourself into believing that a want is a need--and busting your budget in the process--is a recipe for financial disaster.

Is less better? Perhaps it was due to the booming economy, perhaps "keeping up with the Joneses", maybe its ego, but for many of us, we often seem to insist on the biggest and the best, no matter what the cost. When a $15,000 new car may be more than acceptable, we stretch the seams of our budget to afford a $25,000 vehicle. We buy $25 shirts with $35 designer labels attached. We opt for the $100 dinner at the trendy restaurant when a $20 meal would have been just as delicious. Think about where you are spending the family money--and how--to see if there couldn't be savings found with minor changes in habits.

Try before you Buy: This goes a long way in helping to avoid the silly purchases of things you rarely or never use. Before you buy something, especially items with big price tags, borrow one, rent one or try one out before you plunk down the cash. If you are bored with it, or determine that it truly is not something you need before you buy it (and you will be on a certain percentage of items) you will definitely be bored with it, or find it not that necessary, after! Example: You feel that you absolutely must have a new Jet-Ski, at a cost of $4500 (and that is before financing and taxes). You go to the lake, rent one, and 45 minutes into a one hour rental you are saying, "geez, this is a long hour." Saved: More than $4500 (perhaps a year of college fees for the kid!)

Manage Your Credit Wisely...

2007-11-30T21:03:00.000-05:00

Just about everyone needs credit. Whether you're renting an apartment, purchasing or leasing an automobile, purchasing a cell phone, or making purchases online, managing your credit responsibly is a fundamental part of establishing a good credit history.

The following tips will help you get started with managing your credit responsibly:

Make Your Payments On Time. Use your new credit card for purchases and be sure to pay the balance on time. Avoid missed or late payments to any creditor. Late or missed payments can negatively effect your credit rating.
Know Your Credit Limit. A credit limit is not additional income. View your credit limit as a different way to spend the money you already have.
Develop a Spending Plan. Before you use your credit card, you will want to make sure that you are able to pay off the balance on the items you plan to purchase. You can accomplish this by writing down all of your expenses and your income and adjust your spending accordingly.
If Denied Credit, Ask Why. Ask any creditor that denies you credit to give you the reasons for denial. There could be multiple reasons for denial, such as credit history, employment or income. It is important to find out why you are denied. Frequent inquiries (applying for credit) on your credit report could potentially be viewed negatively by a creditor.
Be Secure With Your Credit Card. Don't let anyone else borrow your credit card or in any way have access to your account information. You are responsible for any authorized use of your accounts. Don't give your card number to anyone over the phone or Internet unless you have initiated the transaction.
Know What is On Your Credit Report. You can acquire your credit report at www.annualcreditreport.com. If you are denied credit, you can request a free copy of your credit report to see if there is inaccurate data on your file and have corrections made.

Check Your Credit Reports Regularly

When applying for a credit card, you may want to check your credit report before you apply. The last thing you need is for a credit report problem to slow the processing of your application, especially if it's not your fault. Once you acquire your credit report, you should review and validate the following information is correct:

Your name, or names if you are or were married
Social security number
Date of birth
Addresses of places you've lived
Names of places you've worked
Pending accounts and accounts that have been closed
Nothing has been on the report longer than is allowed by law
Bankruptcies must be taken off your credit history after 10 years
Suits, judgments, tax liens, arrest records, and most other kinds of negative information must be dropped after seven years
Records of delinquent payments or other problems (i.e., make sure they aren't mistakes)

Tips to Save Energy Today

2007-11-27T12:22:00.001-05:00

Easy low-cost and no-cost ways to save energy.

Set your thermostat comfortably low in the winter and comfortably high in the summer. Install a programmable thermostat that is compatible with your heating and cooling system.
Use compact fluorescent light bulbs.
Air dry dishes instead of using your dishwasher's drying cycle.
Turn off your computer and monitor when not in use.
Plug home electronics, such as TVs and DVD players, into power strips; turn the power strips off when the equipment is not in use (TVs and DVDs in standby mode still use several watts of power).
Lower the thermostat on your hot water heater to 120° F.
Take short showers instead of baths.
Wash only full loads of dishes and clothes.

Heating and cooling

To save energy, set your thermostat as low as is comfortable in the winter and as high as is comfortable in the summer. You save 3 percent on the day’s heating or cooling costs by setting your thermostat back one degree (higher for cooling, lower for heating) for that 24-hour period. Maintain those settings and you save 3 percent all season!
Clean or replace heating and cooling filters once a month or as needed. If your filter is in a cardboard frame, it needs to be replaced monthly during the heating season. If your system doubles as a central air-conditioning system, also clean or replace the filter monthly while the cooling system is in use.
Clean air registers, baseboard heaters, and radiators as needed. Make sure they're not blocked by furniture, carpeting, or drapes.
Bleed trapped air from hot-water radiators once or twice a season. If in doubt about how to perform this task, call a professional.
Use kitchen, bath, and other ventilating fans wisely. In just one hour, these fans can pull out a houseful of warmed or cooled air. Turn fans off as soon as they have done the job.
During the heating season, keep the draperies and blinds on your south-facing windows open during the day to allow sunlight and heat to enter your home.
Close drapes at night to help reduce heat loss.
During the cooling season, keep the window coverings closed during the day to prevent the sun from heating your home.
Make sure drapes don't block registers and air returns.
Close off unoccupied rooms.
Install individual room controls to heat and cool rooms only when you use them.
Have your heating and cooling systems serviced once a year to ensure peak operational efficiency.

Laundering

Wash with cold water whenever possible.
Wash and dry full loads to maximize efficiency.
Don't overload dryers. Overloaded dryers use more energy, cause clothes to wrinkle so they may need to be ironed, and wears out clothes more quickly.
Use suds savers and front-loading washers for maximum efficiency.
Always adjust the water level to fit load size. Overloaded washers don't clean clothes as effectively so they even may need to be rewashed.
Clean the lint filter after each drying cycle to maintain dryer efficiency.

Energy-efficient lighting

Use task lighting to target work and leisure activities. This lets you reduce your overall room lighting levels.
Use energy-efficient compate fluorescent bulb—especially in fixtures that operate more than two hours a day. They cost more initially but use 75 percent less electricity and last about ten times longer than incandescent bulbs.
Open shades and blinds to take advantage of natural light.
Select bulbs carefully. Look for the highest lumens at the lowest wattage. Wattage is the power needed to make a bulb work. Lumens measure brightness.
Long-life bulbs emit less light than standard incandescent bulbs of the same wattage. Use long-life bulbs only in hard-to-reach places.
Keep light fixtures clean to gain the most illumination.

Refrigerating

Test the tightness of the door seal on refrigerators and freezers. If the seal doesn't tightly hold a dollar bill when the door is closed, it's probably time to adjust or replace the gasket.
Replace old refrigerators. A 1980s-era refrigerator will cost up to 75 percent more to operate than a new super-efficient model.
For greatest efficency set refrigerators at 40º F. and freezers at 0º F.

Cooking

Use your oven instead of your cook top to cut cooking costs. Surface units heat continuously, but an insulated oven normally heats one-third of the time it's in use.
Don't peek. Cooking temperatures can drop as much as 50º every time the oven door is opened, causing the oven to reheat.
Use the oven's self-cleaning cycle only for big cleaning jobs. Start the cycle while the oven is still hot from baking.
Use small appliances such as crockpots, electric frying pans, toaster ovens, and microwave ovens to save when cooking.

If you know anymore energy saving tips, please let me know!

More Ways to save on Gas

2007-11-27T12:15:00.001-05:00

Gasoline prices across the nation topped out at an average of $3 a gallon as April ended. That's the news from the Energy Information Agency, which tracks fuel costs across the country. The last time most motorists saw prices over $3 at the pump was August 2006.

These gasoline prices send many of us into panicked flashbacks of the fuel crunches in the summer of 1980 and the mid-1970s. Thankfully, we learned a few good habits back then. Many Americans traded in their eight-cylinder gas-guzzlers for pipsqueak cars with small engines and better mileage

Then came the boom of the late '90s, and, oh, how quickly we forgot. Though most of us still pump our own gas, we've fallen into bad habits again. We've embraced the gas-guzzling SUV and dawdle, idling, in drive-through lines.

But you can hold down the number of times you have to stand at the gas pump, aghast, watching the numbers spin. These 15 tips will help you cut fuel consumption:

Car maintenance
1. Keep the tires inflated properly. This one is simple and a potential lifesaver. Underinflated tires waste fuel and wear out the tire tread. Also, check tires regularly for alignment and balance.

2. A well-tuned engine burns less gas. Get regular tuneups and follow through with routine maintenance. The right parts and fresh oil keep your engine happy and less thirsty for gas.

3. Get the junk out of the trunk. A weighed-down car uses more fuel. For every extra 250 pounds your engine hauls, the car loses about one mile per gallon in fuel economy. Carry only the basic emergency equipment and items you really need.

Gas shopping
4. Buy the lowest grade (octane) of gasoline that is appropriate for your car. Check your owner's manual for this information. As long as your engine doesn't knock or ping, the fuel you're using is fine. You can save hundreds of dollars a year.

5. Pay cash at stations that charge extra for credit cards.

6. Don't top off the gas tank. Too much gas will just slosh or seep out. Why waste those extra pennies?

Driving
7. Drive intelligently; don't make fast starts or sudden stops. You're just overexerting your engine and burning extra fuel. Gradual acceleration also helps automatic transmissions run better. Engine-revving wastes fuel, too.

8. Lighten up on the accelerator. The faster you drive, the more gas you use. Speed limits have gone up around most of the nation, but you don't have to see your fuel consumption go up drastically as well. For example, driving at 55 mph rather than 65 mph can improve your fuel economy by two miles per gallon.

9. Avoid long warm-ups. Even on cold winter mornings, your car doesn't need more than a minute to get ready to go. Anything more and you're just burning up that expensive fuel.

10. Combine errands into one trip and plan your stops for the most efficient route. You'll save yourself time and money.

11. Do not rest your left foot on the brake. The slightest pressure could cause a drag that will demand additional gas use -- and wear out the brakes sooner.

Other good habits
12. Tighten up that gas cap. Make sure it's on securely. Buy a new one if your current cap doesn't fit snugly. Gas easily evaporates from the tank if it has an escape.

13. Buy a fuel-efficient car. When pricing cars, factor in long-term fuel costs. Keep in mind that sunroofs add to wind resistance, lowering the mileage per gallon.

14. Be smart with the air conditioning. On the highway, closed windows decrease air resistance, so run the air conditioner. But in stop-and-go traffic, shutting off the air conditioning and opening the windows can lighten your fuel use. Air conditioning can lower your fuel economy by 10 percent to 20 percent.

15. Remove snow tires in good weather. Deep tread and big tires use more fuel.

EIGHT FALL ENERGY SAVING TIPS

2007-11-21T15:43:00.001-05:00

EIGHT FALL ENERGY SAVING TIPS

Tip # 1: Clean or replace your furnace filters once a month or as needed. Dirty filters can block warm air from the furnace and make it operate less efficiently, costing you money.

Tip # 2: Lower your thermostat 5 to 7 degrees at night. Your energy savings will increase as much as 3% - 5% for every degree the thermostat is below 68.

Tip # 3: If your water heater is older, you can wrap it with an insulation jacket. This will help your water heater retain heat and limit the amount of heat lost to the air.

Tip # 4: Weatherize your home by caulking and weather-stripping all exterior doors and windows.

Tip # 5: Keep your shades and curtains open during the day to let in sunlight. Close them at night to retain heat.

Tip # 6: Don't block your radiators or heating vents with furniture or drapes.

Tip # 7: Either insulate or increase the insulation in your basement, attic, and in your outside walls. This will keep heat in and cold air out.

Tip # 8: Use locks on your windows to make the seal tighter and eliminate drafts.

How much money should I keep in a savings account for emergencies?

2007-11-18T17:07:00.001-05:00

How much money should I keep in a savings account for emergencies?

Answer:

Many financial professionals suggest that you put away three to six months' worth of living expenses for emergencies. If you lose your job, or become disabled and don't have adequate disability insurance, you'll need that money to pay your regular monthly expenses, such as mortgage payments, insurance premiums, groceries, and car payments, until you can find another job. Without such an emergency fund, a period of unemployment could put your assets at risk. Similarly, if your car breaks down or your spouse has a medical emergency, you'll want to have the necessary cash to pay the bills. You don't want to be faced with an immediate need for cash, only to discover that you don't have any.

You may have already set up an emergency fund. Did you put the cash in a five-year certificate of deposit (CD) or other long-term investment? In an emergency, you will need to get at those funds immediately. You can certainly pull your money out of the CD early, but you'll pay a penalty. It's better to keep some funds more liquid, in a traditional savings account, a money market deposit account, or a six-month CD, for example. That way, the cash will be readily available when you need it.

Finally, keep your emergency fund separate from your everyday accounts. You might even want to use a different bank. Unless you are extremely disciplined, you'll be tempted to spend those extra funds if you keep them in your checking account. Remember, if you can put off an expense until next week, it is probably not an emergency.

Should I buy or lease a car?

2007-11-18T16:40:00.000-05:00

This topic, "Should I buy or lease a car," starts HUGE arguments among my mom and myself, and one of my closest friends and myself (because she leases her vehicle). Everyone has a different view on this subject, and there are pros and cons to leasing and buying a car. But after careful deliberation, and research, I decided to write this little tidbit to help you make a choice for yourself.

Should I buy or lease a car?

Answer:

There is no definitive answer--you must determine which option works best for you. Use these simple guidelines to help you decide. How long will you keep the car? Leases typically run two to four years. If you like the idea of driving a new car every few years, consider leasing. If you prefer to keep a car until you drive it into the ground, or like the idea of ownership because it gives you equity in the car, consider buying. How large of a monthly payment can you afford? When you buy a car, your payments are based on the total purchase price of that car. Compare this with leasing, where your payments are based on the car's expected decrease in value over the term of the lease (its depreciation). The lease payments may be low enough to put you behind the wheel of your dream car, without the need to worry about a down payment. Usually, you will only need to come up with your first payment and a security deposit to secure a lease.How will you treat the car? Analyze your driving habits. A typical lease will include 12,000 to 15,000 miles per year. If you exceed this amount, you may have to pay extra (e.g., $0.15 per mile) at the end of your lease. Therefore, if you travel great distances for work or intend to take any cross-country trips, buying may be the better option. Also, consider your surroundings. Most lease agreements allow only normal wear and tear. If you know you are tough on your car, or if you live in a neighborhood with only on-street parking, a lease may not be right for you. Remember, if you lease a car, you must pay for any nonwarranty repairs (e.g., a dent in the door), but those repairs benefit the leasing agency, not you. When you buy a car, it's yours to do with as you please--you decide if the dent in the door gets fixed.

Can I buy a house with no money down?

2007-11-18T16:21:00.000-05:00

You've heard all the stories before about buying a home with "NO MONEY DOWN." Now is this something that can really be done? Here is my research on this subject...

Can I buy a house with no money down?

Answer:

Typically, lenders require a down payment of 20 percent of the home's purchase price. However, some special mortgage programs allow you to purchase a home with no down payment, such as Veterans Administration (VA) mortgages (if you are a qualified veteran) and no-down-payment or 100 percent financing mortgage programs. VA mortgage terms are generally favorable when compared with other types of mortgages. However, some variations in terms may exist from lender to lender. As for no-down-payment or 100 percent financing mortgage programs, you will generally pay higher interest rates and closing costs on these loans, and there may be additional qualification requirements.

Besides special mortgage programs, you may be able to qualify for a conventional mortgage with no money down if you purchase private mortgage insurance (PMI). Typically, monthly PMI premiums are $45 to $65 per $100,000 borrowed. The cost of PMI depends on several factors, such as the amount of your down payment, your type of mortgage, and whether you pay premiums on a monthly basis or in a lump sum at closing. PMI premiums can significantly increase your monthly housing cost. Without PMI, however, you may be unable to qualify for a mortgage if you have no down payment.

Ways to Cut Down on Household Expenses

2007-11-18T16:17:00.001-05:00

Cutting down on household expenses can help you stick to your budget. Here are some ways to make every penny count:

Save money on grocery bills by planning your meals ahead of time and using a grocery list
Buy items in bulk at warehouse clubs and discount stores
Save money on heating costs--lower the thermostat at night and while you're at work
Save money on phone bills--shop around for a cheaper long-distance plan
Avoid accumulating high-interest debt--cut up your credit cards and use cash instead

Strategies to Avoid High Gas Prices from Bringing You Down

2007-11-18T16:09:00.000-05:00

I don't know about you guys, but it seems like every time I go to the gas pump, it cost more and more to fill up my tank... So after some thinking, and research, I came up with this:

Strategies to Avoid High Gas Prices from Bringing You Down

With gas prices hovering around $3 a gallon nationwide, here are six tips to help consumers keep costs down during the summer vacation season:

1. Shop around. Check out the competition.

When it comes to soaring gas prices, no one will do you any favors. While you might be a regular at Buddy's Self-Serve, Buddy could be taking advantage of his loyal patrons by charging 20 cents more a gallon than other stations in the area.

That adds up over time: filling your 15-gallon tank twice a week at Buddy's will cost you an extra $24 dollars a month. Shop around: To find the best deals for gas in your area, certain Web sites often have current gas prices posted. Some shopping centers offer discount gas with a set amount of purchases – it may be helpful to change where you usually shop if it will save you money on gas.

You should consider signing up for a credit card that offers a cash back bonus for gas purchases. Check out this website for the best deals on Gas Credit Cards CLICK HERE

2. Be a better driver.

As Mom would say, "Drive safely." According to the Department of Energy, aggressive driving -- rapid acceleration and excessive braking -- wastes gas. You can increase your gas mileage by as much as a third by driving safely.

Also, stick to the speed limit, not just for your safety but also for fuel-efficiency. The Department of Energy says that your gas mileage decreases rapidly at speeds above 60 mph. And use your cruise control: it helps you maintain a constant speed, which can also save gas.

3. Fix it up.

Driving the old clunker may save you money from buying a new car, but skipping the tune-up is costing you. The Department of Energy says that a simple tune-up on your car can improve your gas mileage by an average of 4.1 percent.

Fixing certain parts of the car can also improve your gas mileage dramatically. Repairing a faulty oxygen sensor can make an improvement of as much as 40 percent. Replacing clogged air filters, making sure tires are properly inflated and using the recommended grade of motor oil can also improve gas mileage by as much as 15 percent.

4. Get the right grade.

You may prefer premium coffee, ice cream, and caviar. But let's be honest, does your car need the royal treatment? AAA says the average gallon of premium-unleaded gas cost about 10 percent more than a gallon of regular.

The Federal Trade Commission is advising drivers to check their owner's guide because most cars don't need premium gasoline. According to AAA, less than 10 percent of cars sold in the U.S. need premium.

Drive your most sensible car. If it's a trip to the grocery store, don't take the pickup, take your compact car.

5. Pack light.

If you're hitting the road for your Spring Break or vacation, consider lightening your load. The FTC advises you to take all unnecessary weight out of the car. For those of you who call your car a closet, keep this in mind: an extra 100 pounds in the trunk reduces a typical car's fuel economy by 2 percent.

Don't place anything on top of the car. A luggage or a loaded roof rack creates wind resistance and can reduce your gas mileage by 5 percent. If you can, keep items inside the car.

And even though airlines are now charging travelers as much as $10 extra round trip for a surge in jet fuel costs, it could still be cheaper to fly. To calculate the price differences, price a flight to your destination and compare it to your estimated cost of driving.

The Best Online Budgeting Program

2007-11-15T03:56:00.000-05:00

Find out how to get control of your personal budget

Mvelopes Personal is the leading online personal spending management system that allows you to easily view and control your finances anytime, anywhere. With online and mobile access, all your spending information is always at your fingertips.

Financial Quiz

2007-11-15T03:01:00.000-05:00

And you thought your days of pop quizzes were long gone... Nope, especially when you read the blog of a girl with her Bachelor's Degree in Education.

Do you have a personal budget?
Have you thought about saving for the future?
Do you keep an emergency fund that covers at least three months of living expenses?
True or False: The type of car you drive affects how much you pay for car insurance.
Do you use your credit cards responsibly?

Rate Yourself... Use common sense, you know what the right answer is, but do you follow it?

Handling Market Volatility

2007-11-15T02:52:00.000-05:00

Speaking as a, modern, girl, who listens to Bloomberg Radio religiously. I too, have questions about VOLATILITY. What the heck is it? Well, volatility is, in the easiest way I can explain it, a measurement of the change in price over a given time period.

Handling Market Volatility

Conventional wisdom says that what goes up, must come down. But even if you view market volatility as a normal occurrence, it can be tough to handle when it's your money at stake.

Though there's no foolproof way to handle the ups and downs of the stock market, the following common sense tips can help.

Don't put your eggs all in one basket

Diversifying your investment portfolio is one of the key ways you can handle market volatility. Because asset classes typically perform differently under different market conditions, spreading your assets across a variety of different investments such as stocks, bonds, and cash equivalents (e.g., money market funds, CDs, and other short-term instruments), has the potential to help manage your overall risk. Ideally, a decline in one type of asset will be balanced out by a gain in another, but diversification can't eliminate the possibility of market loss.

One way to diversify your portfolio is through asset allocation. Asset allocation involves identifying the asset classes that are appropriate for you and allocating a certain percentage of your investment dollars to each class (e.g., 70 percent to stocks, 20 percent to bonds, 10 percent to cash equivalents). An easy way to decide on an appropriate mix of investments is to use a worksheet or an interactive tool that suggests a model or sample allocation based on your investment objectives, risk tolerance level, and investment time horizon.

Focus on the forest, not on the trees

As the market goes up and down, it's easy to become too focused on day-to-day returns. Instead, keep your eyes on your long-term investing goals and your overall portfolio. Although only you can decide how much investment risk you can handle, if you still have years to invest, don't overestimate the effect of short-term price fluctuations on your portfolio.

Look before you leap

When the market goes down and investment losses pile up, you may be tempted to pull out of the stock market altogether and look for less volatile investments. The small returns that typically accompany low-risk investments may seem downright attractive when more risky investments are posting negative returns.

But before you leap into a different investment strategy, make sure you're doing it for the right reasons. How you choose to invest your money should be consistent with your goals and time horizon.

For instance, putting a larger percentage of your investment dollars into vehicles that offer safety of principal and liquidity (the opportunity to easily access your funds) may be the right strategy for you if your investment goals are short-term (e.g., you'll need the money soon to buy a house) or if you're growing close to reaching a long-term goal such as retirement. But if you still have years to invest, keep in mind that stocks have historically outperformed stable value investments over time, although past performance is no guarantee of future results. If you move most or all of your investment dollars into conservative investments, you've not only locked in any losses you might have, but you've also sacrificed the potential for higher returns.

Look for the silver lining

A down market, like every cloud, has a silver lining. The silver lining of a down market is the opportunity you have to buy shares of stock at lower prices.

One of the ways you can do this is by using dollar cost averaging. With dollar cost averaging, you don't try to "time the market" by buying shares at the moment when the price is lowest. In fact, you don't worry about price at all. Instead, you invest money at regular intervals over time. When the price is higher, your investment dollars buy fewer shares of stock, but when the price is lower, the same dollar amount will buy you more shares. Although dollar cost averaging can't guarantee you a profit or protect against a loss, a regular fixed dollar investment may result in a lower average price per share over time, assuming you invest through all types of markets. Please remember that since dollar cost averaging involves continuous investment in securities regardless of fluctuating price levels of such securities, you should consider your financial ability to make ongoing purchases.

Don't count your chickens before they hatch

As the market recovers from a down cycle, elation quickly sets in. If the upswing lasts long enough, it's easy to believe that investing in the stock market is a sure thing. But, of course, it never is. As many investors have learned the hard way, becoming overly optimistic about investing during the good times can be as detrimental as worrying too much during the bad times. The right approach during all kinds of markets is to be realistic. Have a plan, stick with it, and strike a comfortable balance between risk and return.

Don't stick your head in the sand

While focusing too much on short-term gains or losses is unwise, so is ignoring your investments. You should check up on your portfolio at least once a year, more frequently if the market is particularly volatile or when there have been significant changes in your life. You may need to rebalance your portfolio to bring it back in line with your investment goals and risk tolerance. If you need help, a financial professional can help you decide which investment options are right for you.

Common Investment Goals

2007-11-15T02:45:00.001-05:00

Common Investment Goals

Go out into your yard and dig a big hole. Every month, throw $50 into it, but don't take any money out until you're ready to buy a house, send your child to college, or retire.

It sounds a little crazy, doesn't it? But that's what investing without setting clear-cut goals is like. If you're lucky, you may end up with enough money to meet your needs, but you have no way to know for sure.

How do you set investment goals?

Setting investment goals means sitting down and defining your dreams for the future. If you are married or in a long-term relationship, spend some time together discussing your joint and individual goals. You can do this on your own or with the help of a financial advisor. It's best to be as specific as possible. For instance, you know you want to retire, but when? You know you want to send your child to college, but to an Ivy League school or to the community college down the street?

You'll end up with a list of goals. Some of these goals will be long term (you have more than 15 years to plan), some will be short term (5 years or less to plan), and some will be intermediate (between 5 and 15 years to plan). You can then decide how much money you'll need to accumulate and which investments can best help you meet your goals.

Looking forward to retirement

After a hard day at the office, do you ask, "Is it time to retire yet?" Retirement may seem a long way off, but it's never too early to start planning--especially if you want retirement to be the good life you imagine.

Let's say that your goal is to retire at age 65 with $500,000 in your retirement fund. At age 25 you decide, with the help of an investment advisor, to begin contributing $250 per month to your tax-deferred 401(k) account. If your investment earns 6 percent per year, compounded monthly, you'll have more than $500,000 in your investment account when you retire.

But what would happen if you left things to chance instead? Let's say that you're not really worried about retirement, so you wait until you're 35 to begin investing. Assuming you contributed the same amount to your 401(k) and the rate of return on your investment dollars was the same, you would end up with only about half the amount you need.

Some other points to keep in mind as you're setting specific retirement investment goals:

Determine how much money you'll need in retirement: Many experts say that you'll need about 75 to 85 percent of your current income to maintain your standard of living
Plan for a long life: According to life expectancy charts, you can expect to live for 15 to 20 years past retirement, assuming you retire at age 65
Think about how much time you have until retirement, then invest accordingly: For instance, if retirement is a long way off and you can handle some risk, you might choose to invest in stock or equity mutual funds that, though more volatile, offer a higher potential for long-term return than do more conservative investments
Consider how inflation will affect your retirement savings: When determining how much you'll need to save for retirement, don't forget that the higher the cost of living, the lower your real rate of return on your investment dollars

Facing the truth about college savings

Perhaps you faced the ugly truth the day your child was born. Or maybe it hit you when your child started first grade: You only have so much time to save for college. In fact, for many people, saving for college is an intermediate-term goal--if you start saving when your child is in elementary school, you'll have 10 to 15 years to build your college fund. Of course, the earlier you start the better. The more time you have before you need the money, the greater chance you have to build a substantial college fund due to compounding. With a longer investment time frame and a tolerance for some risk, you might also be willing to put some of your money into investments that offer the potential for growth.

Consider these tips as well:

Estimate how much it will cost to send your child to college and plan accordingly: Estimates of the average future cost of tuition at two-year and four-year public and private colleges and universities are widely available (or ask your financial advisor for information)
Research financial aid packages that can help offset part of the cost of college: Although there's no guarantee your child will receive financial aid, at least you'll know what kind of help is available should you need it
Look into state-sponsored tuition plans that put your money into investments tailored to your financial needs and time frame: For instance, most of your dollars may be allocated to growth investments initially, then later as your child approaches college, into more conservative investments to conserve principal
Think about how you might resolve conflicts between goals: For instance, if you need to save for your child's education and your own retirement at the same time, how will you do it?

Investing for something big

At some point, you'll probably want to buy a home, a car, or the yacht that you've always wanted. Although they're hardly impulse items, large purchases are usually not something for which you plan far in advance--one to five years is a common time frame.

Because you don't have much time to invest, you'll have to budget your investment dollars wisely. Rather than choosing growth investments, you may want to put your money into less volatile, highly liquid investments that have some potential for growth, but that offer you quick and easy access to your money should you need it.

Understanding Your Credit Report

2007-11-15T02:43:00.001-05:00

Understanding Your Credit Report

Your credit report contains information about your past and present credit transactions. It's used primarily by potential lenders to evaluate your creditworthiness. So if you're about to apply for credit, especially for something significant like a mortgage, you'll want to get and review a copy of your credit report.

You can see what they see: getting a copy of your credit report

Every consumer is entitled to a free credit report every 12 months from each of the three credit bureaus. To get your free annual report, you can contact each of the three credit bureaus individually, or you can contact one centralized source that has been created for this purpose. Besides the annual report, you are also entitled to a free report under the following circumstances:

A company has taken adverse action against you, such as denying you credit, insurance, or employment (you must request a copy within 60 days of the adverse action)
You're unemployed and plan to look for a job within the next 60 days
You're on welfare
Your report is inaccurate because of fraud, including identity theft

You can order your free annual report online at www.annualcreditreport.com, by calling 877-322-8228, or by completing an Annual Report Request Form and mailing it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

Alternatively, you can contact each of the three credit bureaus:

Experian National Consumer Assistance Center, www.experian.com, P.O. Box 2104, Allen, TX 75013-2104, (888) 397-3742
Trans Union LLC, Consumer Disclosure Center, www.transunion.com, 1000, Chester, PA 19022, (800) 916-8800
Equifax, Inc., www.equifax.com, P.O. Box 740241, Atlanta, GA 30374, (800) 685-1111

If you make your request online, you should get access to your report immediately. If you request your report by phone or mail, you should receive it within 15 days.

What's it all about?

Your credit report usually starts off with your personal information: your name, address, Social Security number, telephone number, employer, past address and past employer, and (if applicable) your spouse's name. Check this information for accuracy; if any of it is wrong, correct it with the credit bureau that issued the report.

The bulk of the information in your credit report is account information. For each creditor, you'll find the lender's name, account number, and type of account; the opening date, high balance, present balance, loan terms, and your payment history; and the current status of the account. You'll also see status indicators that provide information about your payment performance over the past 12 to 24 months. They'll show whether the account is or has been past due, and if past due, they'll show how far (e.g., 30 days, 60 days). They'll also indicate charge-offs or repossessions. Because credit bureaus collect information from courthouse and registry records, you may find notations of bankruptcies, tax liens, judgments, or even criminal proceedings in your file.

At the end of your credit report, you'll find notations on who has requested your information in the past 24 months. When you apply for credit, the lender requests your credit report--that will show up as an inquiry. Other inquiries indicate that your name has been included in a creditor's prescreen program. If so, you'll probably get a credit card offer in the mail.

You may be surprised at how many accounts show up on your report. If you find inactive accounts (e.g., a retailer you no longer do business with), you should contact the credit card company, close the account, and ask for a letter confirming that the account was closed at the customer's request.

Basing the future on the past

What all this information means in terms of your creditworthiness depends on the lender's criteria. Generally speaking, a lender feels safer assuming that you can be trusted to make timely monthly payments against your debts in the future if you have always done so in the past. A history of late payments or bad debts will hurt you. Based on your track record, a new lender is likely to turn you down for credit or extend it to you at a higher interest rate if your credit report indicates that you are a poor risk.

Too many inquiries on your credit report in a short time can also make lenders suspicious. Loan officers may assume that you're being turned down repeatedly for credit or that you're up to something--going on a shopping spree, financing a bad habit, or borrowing to pay off other debts. Either way, the lenders may not want to take a chance on you.

Your credit report may also indicate that you have good credit, but not enough of it. For instance, if you're applying for a car loan, the lender may be reviewing your credit report to determine if you're capable of handling monthly payments over a period of years. The lender sees that you've always paid your charge cards on time, but your total balances due and monthly payments have been small. Because the lender can't predict from this information whether you'll be able to handle a regular car payment, your loan is approved only on the condition that you supply an acceptable cosigner.

Correcting errors on your credit report

Under federal and some state laws, you have a right to dispute incorrect or misleading information on your credit report. Typically, you'll receive with your report either a form to complete or a telephone number to call about the information that you wish to dispute. Once the credit bureau receives your request, it generally has 30 days to complete a reinvestigation by checking any item you dispute with the party that submitted it. One of four things should then happen:

The credit bureau reinvestigates, the party submitting the information agrees it's incorrect, and the information is corrected
The credit bureau reinvestigates, the party submitting the information maintains it's correct, and your credit report goes unchanged
The credit bureau doesn't reinvestigate, and so the disputed information must be removed from your report
The credit bureau reinvestigates, but the party submitting the information doesn't respond, and so the disputed information must be removed from your report

You should be provided with a report on the reinvestigation within five days of its conclusion. If the reinvestigation resulted in a change to your credit report, you should also get an updated copy.

You have the right to add to your credit report a statement of 100 words or less that explains your side of the story with respect to any disputed but unchanged information. A summary of your statement will go out with every copy of your credit report in the future, and you can have the statement sent to anyone who has gotten your credit report in the past six months. Unfortunately, though, this may not help you much--creditors often ignore or dismiss these statements.

How can I repair my poor credit?

2007-11-15T02:39:00.000-05:00

Speaking from experience, I know how horrible it can be, if you have less than stellar credit. And since I consider myself a MODERN GIRL, I know how hard it is to get back on a budget, so you can improve your credit score.

How can I repair my poor credit?

Answer:

Your first step in repairing poor credit should be to obtain a copy of your credit report. The three major credit reporting agencies are Experian, Trans Union, and Equifax. You can obtain a copy of your report by contacting these agencies by phone, by mail, or through their websites. Check the report carefully for any errors and make sure that all the information contained in the report is correct.

Next, you can try mitigating the impact of any derogatory credit you may have on your credit report by adding positive account information to your credit file. Start by contacting creditors with whom you have a good credit relationship and give them permission to release your account information to credit reporting agencies. You should then contact the credit reporting agencies and provide them with the names and telephone numbers of the creditors with whom you have good credit. For a small fee, most credit reporting agencies will call your creditors and add the positive account information to your file.

Another option is to go directly to your creditors and try to clear your credit record. If your poor credit resulted from circumstances that were beyond your control (e.g., hospitalization, layoff), and you have reconciled your account since that time, you may be able to convince your creditors to upgrade your rating.

If you have bad debts that are current, you may be able to negotiate away poor credit by agreeing to pay off your debts over a period of time. Contact your creditors and propose a deal in which you will agree to a reasonable repayment schedule if they agree to upgrade your status with the credit bureau.

You can also add a statement to your credit report that tells your side of the story. You have the right to include a 100-word statement in your credit file. The statement should list any extenuating circumstances that could possibly mitigate the negative credit information in your credit report. Perhaps you were hospitalized for a period of time and were unable to pay your bills, or maybe you were laid off from your job. If your credit history shows that you typically pay your bills on time, this statement could help to explain an isolated instance or period of derogatory credit.

Finally, you can always choose to wait out your credit problems. With some minor exceptions, derogatory credit will be purged from your credit report within seven years. However, if you can show income stability and prompt payment patterns, your situation will improve within one to three years. Keep in mind that you should avoid incurring any more derogatory credit while you try to repair your poor credit. If you do incur derogatory credit, the seven-year clock resets and starts ticking again!

Piggybacking Credit

2007-11-15T02:38:00.000-05:00

Piggybacking Credit

History

For years, credit lenders allowed users to “piggyback” on other consumers to boost their credit scores. This was a legitimate practice designed to help friends and relatives qualify for loans and get lower interest rates on debt obligations. By adding a person as an “authorized user” to your credit card, your good (or bad history) with that account could be imported into the other person’s credit files at the three bureaus. (There are three main nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. They monitor each individual’s credit worthiness.)

Current Practices

A new type of credit repair service operates under the same basic principle, but promises consumers the ability to rapidly boost credit scores, get loans from banks, and lower interest rates. The piggyback credit service allows people with poor credit scores to add themselves as authorized users of those with excellent credit who are paid to allow this “piggybacking.” However, this practice has lenders and the government concerned.

The practice of using “piggyback credit” can also put consumers into debt obligations beyond the means of their income. Building good credit takes time. Shortcuts such as piggyback credit can harm rather than benefit the users. Lenders worry that applicants who artificially boost their credit scores will have a greater risk of defaulting on their loans. Some even call it mortgage fraud. The practice has already caused widespread concern as, according to an Associated Press article, “Ninety percent of the largest U.S. banks base their loan decisions on FICO scores, which currently include authorized user accounts.” (FICO scores are a measure of credit risk and are the most used credit scores in the world.) FICO scores may not include authorized user accounts much longer.

Future Implications

The decision has been made to change the leading FICO credit-scoring formula to ignore all references to authorized user accounts. This change will occur in the upcoming months and years. Up to 41 million people could potentially see their scores affected by the change. Those who are authorized users on accounts with high credit scores might see their scores drop.

There are several legitimate ways to improve your credit scores. There are no quick fixes and be wary of any company or individual that purports to have that ability. You have the power to repair your credit. The best way is to show income stability and prompt payment patterns. Over time, this consistent behavior will improve your score.

Buying A Car!

2007-11-15T02:37:00.001-05:00

Buying a Car

Maybe you've always pictured yourself driving a shiny red convertible. Or perhaps you've had a recent addition to the family and you're looking for the practicality of a minivan. Whatever the reason, you're in the market for a new car. Here are some tips to help make the car-buying process a bit easier.

Choosing a car

As you try to decide what type of car you want to buy, consider the following:

If you already have a car, what do you like and dislike about it?
Do you want a lot of passenger space?
Do you want two doors or four?
Do you prefer a standard or an automatic transmission?
How much does prestige matter?
What about better fuel economy?
Is your heart set on purchasing a new car, or are you willing to settle for a well-maintained used one?
How much can you afford to spend?

You'll also want to keep in mind such factors as resale value, maintenance, and insurance costs. It may be helpful to consult one of the many car-buying guides to help you choose a vehicle and give you information on pricing, reliability, and safety. Many are available on-line.

Once you have narrowed down your choices, you'll want to visit some dealerships and take those cars for a test-drive. When you get behind the wheel, ask yourself:

Is there plenty of legroom and headroom?
Is it easy to load passengers and cargo?
Is the seat comfortable?
Is the control panel visible and accessible?
Is there enough trunk space?
Does the car ride smoothly?
Does the car have good acceleration and handling?

Determining your target price

Once you've settled on a car model, you should do some research on the invoice price, including the cost of any options that you want. That way, you can negotiate the price based on the approximate cost of the vehicle to the dealer, rather than try to bargain down from the sticker price. Keep in mind that the dealer's cost is often less than the invoice price because of factory-to-dealer incentives. That's why a good target price is approximately 3 percent above the invoice price, although this will vary depending on the car model.

Going to the dealership

Armed with your target price, you should be ready to begin shopping around for the best purchase price. Try to visit more than one dealership, since prices vary. At the dealership, you'll want to be sure to negotiate, keeping in mind the following tips:

Don't set your sights on just one car model. Many manufacturers offer similar models, and one may be much more affordable than another.
If you're trading in your old car, don't discuss the trade-in price until you have established a purchase price for the new car. You don't want to negate a good purchase deal by accepting far less than your trade-in vehicle is worth.
If the dealer isn't willing to give you a deal that you're happy with, don't hesitate to take your business elsewhere.
If you want to avoid negotiating over price, you may want to consider a dealer with a no-haggle policy.

Closing the deal

After you and the dealer have settled on a purchase price, you may need to sign some preliminary paperwork and give the dealer a deposit. If you need a loan to purchase the car, you'll also need to obtain financing. If you don't mind making financing arrangements ahead of time, many banks, credit unions, and auto clubs offer favorable interest rates on car loans.

At the dealership, you have a couple of financing options. First, you'll want to ask about special financing programs available through the car manufacturer. These are usually the best deals, offering low interest rates. Unfortunately, though, qualifying for these programs can be hard because special restrictions often apply (e.g., large down payment, limited payment terms).

You can also apply for a traditional car loan through the dealer, who makes additional money by arranging on-the-spot financing. But don't assume you're getting the best deal available. The interest rate on dealer-sponsored loans is usually higher than the interest rate that you would receive on your own.

Around this time, the dealer will try to sell you extras such as an extended warranty, service contract, or rustproofing. Watch out--these extras are expensive and often overpriced. If you're interested in purchasing them, be sure to negotiate a favorable price, or look into buying them elsewhere.

The dealer can also help you arrange proper insurance coverage of your car and make sure that the registration and plates are in order, or you can choose to do this yourself. In either case, once all the paperwork is signed, the dealer will hand you the keys, and the car will be yours!

Buying a Home

2007-11-15T02:26:00.000-05:00

I am FAR away, from buying my own home, but hey, someday I want the American Dream too... So I have compiled my research on buying a home.

Buying a Home

There's no doubt about it--owning a home is an exciting prospect. After all, you've always dreamed of having a place that you could truly call your own. But buying a home can be stressful, especially when you're buying one for the first time. Fortunately, knowing what to expect can make it a lot easier.

How much can you afford?

According to a general rule of thumb, you can afford a house that costs two and a half times your annual salary. But determining how much you can afford to spend on a house is not quite so simple. Since most people finance their home purchases, buying a house usually means getting a mortgage. So, the amount you can afford to spend on a house is often tied to figuring out how large a mortgage you can afford. To figure this out, you'll need to take into account your gross monthly income, housing expenses, and any long-term debt. Try using one of the many real estate and personal finance websites to help you with the calculations.

Mortgage prequalification vs. preapproval

Once you have an idea of how much of a mortgage you can afford, you'll want to shop around and compare the mortgage rates and terms that various lenders offer. When you find the right lender, find out how you can prequalify or get preapproval for a loan. Prequalifying gives you the lender's estimate of how much you can borrow and in many cases can be done over the phone, usually at no cost. Prequalification does not guarantee that the lender will grant you a loan, but it can give you a rough idea of where you stand. If you're really serious about buying, however, you'll probably want to get preapproved for a loan. Preapproval is when the lender, after verifying your income and performing a credit check, lets you know exactly how much you can borrow. This involves completing an application, revealing your financial information, and paying a fee.

It's important to note that the mortgage you qualify for or are approved for is not always what you can actually afford. Before signing any loan paperwork, take an honest look at your lifestyle, standard of living, and spending habits to make sure that your mortgage payment won't be beyond your means.

Should you use a real estate agent or broker?

A knowledgeable real estate agent or buyer's broker can guide you through the process of buying a home and make the process much easier. This assistance can be especially helpful to a first-time home buyer. In particular, an agent or broker can:

Help you determine your housing needs
Show you properties and neighborhoods in your price range
Suggest sources and techniques for financing
Prepare and present an offer to purchase
Act as an intermediary in negotiations
Recommend professionals whose services you may need (e.g., lawyers, mortgage brokers, title professionals, inspectors)
Provide insight into neighborhoods and market activity
Disclose positive and negative aspects of properties you're considering

Keep in mind that if you enlist the services of an agent or broker, you'll want to find out how he or she is being compensated (i.e., flat fee or commission based on a percentage of the sale price). Many states require the agent or broker to disclose this information to you up front and in writing.

Choosing the right home

Before you begin looking at houses, decide in advance the features that you want your home to have. Knowing what you want ahead of time will make the search for your dream home much easier. Here are some things to consider:

Price of home and potential for appreciation
Location or neighborhood
Quality of construction, age, and condition of the property
Style of home and lot size
Number of bedrooms and bathrooms
Quality of local schools
Crime level of the area
Property taxes
Proximity to shopping, schools, and work

Making the offer

Once you find a house, you'll want to make an offer. Most home sale offers and counteroffers are made through an intermediary, such as a real estate agent. All terms and conditions of the offer, no matter how minute, should be put in writing to avoid future problems. Typically, your attorney or real estate agent will prepare an offer to purchase for you to sign. You'll also include a nominal down payment, such as $500. If the seller accepts the offer to purchase, he or she will sign the contract, which will then become a binding agreement between you and the seller. For this reason, it's a good idea to have your attorney review any offer to purchase before you sign.

Other details

Once the seller has accepted your offer, you, your real estate agent, or the mortgage lender will get busy completing procedures and documents necessary to finalize the purchase. These include finalizing the mortgage loan, appraising the house, surveying the property, and getting homeowners insurance. Typically, you would have made your offer contingent upon the satisfactory completion of a home inspection, so now's the time to get this done as well.

The closing

The closing meeting, also known as a title closing or settlement, can be a tedious process--but when it's over, the house is yours! To make sure the closing goes smoothly, some or all of the following people should be present: the seller and/or the seller's attorney, your attorney, the closing agent (a real estate attorney or the representative of a title company or mortgage lender), and both your real estate agent and the seller's.

At the closing, you'll be required to sign the following paperwork:

Promissory note: This spells out the amount and repayment terms of your mortgage loan.
Mortgage: This gives the lender a lien against the property.
Truth-in-lending disclosure: This tells you exactly how much you will pay over the life of your mortgage, including the total amount of interest you'll pay.
HUD-1 settlement statement: This details the cash flows among the buyer, seller, lender, and other parties to the transaction. It also lists the amounts of all closing costs and who is responsible for paying these.

In addition, you'll need to provide proof that you have insured the property. You'll also be required to pay certain costs and fees associated with obtaining the mortgage and closing the real estate transaction. On average, these total between 3 and 7 percent of your mortgage amount, so be sure to bring along your checkbook.

Ways to Cut Down on Household Expenses

2007-11-15T02:25:00.001-05:00

Cutting down on household expenses can help you stick to your budget. Here are some ways to make every penny count:

Save money on grocery bills by planning your meals ahead of time and using a grocery list
Buy items in bulk at warehouse clubs and discount stores
Save money on heating costs--lower the thermostat at night and while you're at work
Save money on phone bills--shop around for a cheaper long-distance plan
Avoid accumulating high-interest debt--cut up your credit cards and use cash instead

Three Keys to Financial Success

2007-11-15T02:24:00.000-05:00

Three keys to financial success are:

Always spend less than you earn
Avoid splurging
Invest the rest

How Will I Ever Pay Off My Student Loans?

2007-11-15T02:13:00.000-05:00

I will be graduating from college soon, and I cannot wait. However, I am not looking forward to paying the HUGE amount of student loans that have accumulated over the 5 years I have been in school. (Maybe I can put them off longer, I am planning on starting my Master's Degree, starting in January 2008!).

How will I ever pay off my student loans?

Answer:

As the cost of post-secondary education continues to increase and you take on further student loan indebtedness to pay for it, you may feel as if you are leaving the ivory tower with a mortgage on your back. You may be surprised to discover that some or all of your indebtedness can be forgiven if you are employed in certain public-service sectors, teach in teacher-shortage areas, or go into the Peace Corps.

If these choices aren't available to you, you must find a way to budget for your student loan payments. Review your household income and expenses. Can you reduce your spending on entertainment, luxuries, and discretionary items? If so, you can divert these saved funds toward monthly principal prepayment of your student loans, thus shortening the overall repayment term and saving on interest charges. You are always permitted to prepay the principal of student loans, partially or in full, without penalty.

Would consolidating your loans or refinancing your loans make the payment schedule easier? Check with your current lender to see what options you might have.

Are you in a position to take on a second, part-time job? The income from this job could be used to reduce your student loan indebtedness. Can you devote a tax refund, gift money, or inheritance to principal prepayment? Even infrequent payments of this sort will ultimately reduce your loan balance and save you both time (repaying the debt) and money (the interest on the debt).

GETTING STARTED: ESTABLISHING A FINANCIAL SAFETY NET

2007-11-15T02:03:00.000-05:00

Establishing a financial safety net is one of the most important things you can do for yourself. And I know, I know, how hard it is to live on the income you already receive without saving a penny. But I have created a way to make "Establishing A Financial Safety Net" easier on all of us...

GETTING STARTED: ESTABLISHING A FINANCIAL SAFETY NET

In times of crisis, you don't want to be shaking pennies out of a piggy bank. Having a financial safety net in place can ensure that you're protected when a financial emergency arises. One way to accomplish this is by setting up a cash reserve, a pool of readily available funds that can help you meet emergency or highly urgent short-term needs.

How much is enough?

Most financial professionals suggest that you have three to six months' worth of living expenses in your cash reserve. The actual amount, however, should be based on your particular circumstances. Do you have a mortgage? Do you have short-term and long-term disability protection? Are you paying for your child's orthodontics? Are you making car payments? Other factors you need to consider include your job security, health, and income. The bottom line: Without an emergency fund, a period of crisis (e.g., unemployment, disability) could be financially devastating.

Building your cash reserve

If you haven't established a cash reserve, or if the one you have is inadequate, you can take several steps to eliminate the shortfall:

Save aggressively: If available, use payroll deduction at work; budget your savings as part of regular household expenses
Reduce your discretionary spending (e.g., eating out, movies, lottery tickets)
Use current or liquid assets (those that are cash or are convertible to cash within a year)
Use earnings from other investments (e.g., CDs, stocks, mutual funds)
Check out other resources (e.g., do you have a cash value insurance policy that you can borrow from?)

A final note: Your credit line can be a secondary source of funds in a time of crisis. Borrowed money, however, has to be paid back (often at high interest rates). As a result, you shouldn't consider lenders as a primary source for your cash reserve.

Where to keep your cash reserve

You'll want to make sure that your cash reserve is readily available when you need it. However, an FDIC-insured, low-interest savings account isn't your only option. There are several excellent alternatives, each with unique advantages. For example, money market accounts and short-term CDs typically offer higher interest rates than savings accounts, with little (if any) increased risk.

It's important to note that certain fixed-term investment vehicles (i.e., those that pledge to return your principal plus interest on a given date), such as CDs and Treasury securities, impose a significant penalty for early withdrawals. So, if you're going to use fixed-term investments as part of your cash reserve, you'll want to be sure to ladder (stagger) their maturity dates over a short period of time (e.g., two to five months). This will ensure the availability of funds, without penalty, to meet sudden financial needs.

Review your cash reserve periodically

Your personal and financial circumstances change often--a new child comes along, an aging parent becomes more dependent, or a larger home brings increased expenses. Because your cash reserve is the first line of protection against financial devastation, you should review it annually to make sure that it fits your current needs.

Getting A Budget Started...

2007-11-15T01:48:00.000-05:00

Find out how to get control of your personal budget

So I have FINALLY decided to start a blog about my MONEY! I figured if I am writing about it, especially online, that I will make fewer mistakes with it. And since this is my first entry, on this blog, I decided to start with the dreaded budget talk.

Establishing a Budget

Do you ever wonder where your money goes each month? Does it seem like you're never able to get ahead? If so, you may want to establish a budget to help you keep track of how you spend your money and help you reach your financial goals.

Examine your financial goals

Before you establish a budget, you should examine your financial goals. Start by making a list of your short-term goals (e.g., new car, vacation) and your long-term goals (e.g., your child's college education, retirement). Next, ask yourself: How important is it for me to achieve this goal? How much will I need to save? Armed with a clear picture of your goals, you can work toward establishing a budget that can help you reach them.

Identify your current monthly income and expenses

To develop a budget that is appropriate for your lifestyle, you'll need to identify your current monthly income and expenses. You can jot the information down with a pen and paper, or you can use one of the many software programs available that are designed specifically for this purpose.

Start by adding up all of your income. In addition to your regular salary and wages, be sure to include other types of income, such as dividends, interest, and child support. Next, add up all of your expenses. To see where you have a choice in your spending, it helps to divide them into two categories: fixed expenses (e.g., housing, food, clothing, transportation) and discretionary expenses (e.g., entertainment, vacations, hobbies). You'll also want to make sure that you have identified any out-of-pattern expenses, such as holiday gifts, car maintenance, home repair, and so on. To make sure that you're not forgetting anything, it may help to look through canceled checks, credit card bills, and other receipts from the past year. Finally, as you list your expenses, it is important to remember your financial goals. Whenever possible, treat your goals as expenses and contribute toward them regularly.

Evaluate your budget

Once you've added up all of your income and expenses, compare the two totals. To get ahead, you should be spending less than you earn. If this is the case, you're on the right track, and you need to look at how well you use your extra income. If you find yourself spending more than you earn, you'll need to make some adjustments. Look at your expenses closely and cut down on your discretionary spending. And remember, if you do find yourself coming up short, don't worry! All it will take is some determination and a little self-discipline, and you'll eventually get it right.

Monitor your budget

You'll need to monitor your budget periodically and make changes when necessary. But keep in mind that you don't have to keep track of every penny that you spend. In fact, the less record keeping you have to do, the easier it will be to stick to your budget. Above all, be flexible. Any budget that is too rigid is likely to fail. So be prepared for the unexpected (e.g., leaky roof, failed car transmission).

Tips to help you stay on track

Involve the entire family: Agree on a budget up front and meet regularly to check your progress
Stay disciplined: Try to make budgeting a part of your daily routine
Start your new budget at a time when it will be easy to follow and stick with the plan (e.g., the beginning of the year, as opposed to right before the holidays)
Find a budgeting system that fits your needs (e.g., budgeting software)
Distinguish between expenses that are "wants" (e.g., designer shoes) and expenses that are "needs" (e.g., groceries)
Build rewards into your budget (e.g., eat out every other week)
Avoid using credit cards to pay for everyday expenses: It may seem like you're spending less, but your credit card debt will continue to increase