Saving Money

Cheap Gift Tags

2008-10-21T21:19:00.000-07:00

Have a fistful of paint swatches left over from your recent bathroom redo? Or maybe you splurged on a roll of nice wrapping paper but can't find matching gift tags. A simple fix: Cut out round tags from those colorful paint chips (if you need more than a few, ask the store for cards with discontinued shades.) Punch a hole in your tag; tie on with embroidery floss or thin ribbon.

How to Afford the Big Stuff

2008-10-19T00:58:00.000-07:00

By Mary Hunt Posted July 08, 2008 from Woman's Day

Define the goal

The first, most important step is to figure out what your next big money decision will be. You may not be aware you have any, but the truth is you have several to choose from. Do you think big medical expenses could arise in the next several months? Is your car beginning to show its age? Let’s say, for example, your refrigerator is slowing down. At 12 years old, you anticipate it has about three years left. Knowing this gives you something valuable: time to start researching and saving. What style and size do you need? About how much will it cost? Are there options you should consider? Brands you should avoid? Look into it now.

Identify the terms

If you start saving for the refrigerator right now, you'll have about 36 months. Let's say you determine that it'll cost about $1,600. Divide that amount by the term of 36 months. The result is about $44. You'll need to save $44 each month, starting now, so you'll be able to replace your refrigerator in three years.

Make it smaller

Cut your goal into pieces—smaller payments are psychologically easier to handle. So instead of 36 months, divide the cost of the refrigerator by 156—the number of weeks in the term. With this slight change in terms, you only need to save $10.26 each week to reach your goal.

…and predictable

View this as a new, regular bill you must make each month. It'll soon become as ordinary and predictable as your mortgage or car payment.

Set up an account

Don't keep this stash in a drawer or even in your regular savings account—it puts the money within easy reach and makes it too available for you to borrow for some other purpose. Open an interest-bearing account specifically for the item you want to buy instead.

...and make it automatic

Set up an automatic savings plan to regularly transfer money from your other account.

Visualize the goal

Stay focused by finding a picture of the item. Post it where you'll see it often, like on the fridge. This will go a long way in motivating you. Get creative and draw a grid over the picture with a pen and ruler so you have the same number of squares as payments you'll make. After each payment, fill in a space on the grid with a highlighter.

Pay a little more now and then

Look for new ways and frugal choices that will result in money you can put toward reaching your goal even faster. The money you saved on groceries this week? Use it as an extra payment. The loose change in a jar on your dresser? Use that, too.

One goal at a time

About now you're probably thinking about several savings goals you want to work on simultaneously. I understand your enthusiasm, but I know from experience that it's best to start slowly. If you have additional funds, use them to reach this goal before starting on another. In time, as you become adept with managing big money decisions, you'll be able to handle several at once.

Pay Off Your Mortgage Early

2008-10-19T00:33:00.000-07:00

By Woman's Day Staff Posted July 08, 2008 from Woman's Day

Start Off Right

Make the first payment count
When you buy a home, many lenders require one month’s interest to be prepaid as part of the closing costs, with the first payment due in the second month after closing. If you choose to make your first payment in the initial month, that entire amount will go to reducing the principal. Making this one payment at the start lops off $7,394 in interest and six months from a $200,000 30-year mortgage at 6.5 percent interest.

Less is more
Let’s say you qualify to buy a $250,000 home with a $200,000 mortgage at 6.5 percent interest for 30 years, payable at $1,264 per month. A better strategy would be to buy a $150,000 house with a 30-year $100,000 mortgage at 6.5 percent ($636 payments). By paying the larger amount each month ($1,264), you’ll pay this mortgage off in 8.5 years. Sell and upgrade to a $250,000 home, use the entire $150,000 as a down payment and repeat.

Get fixed
Even though interest rates are creeping upward, if you have a primary mortgage and home equity loan with variable rates of interest, refinancing both into a fixed-rate mortgage may be a wise move. With a fixed rate you always know what to expect. Caution: As tempting as it is to cash out some of your equity (the current market value minus what you owe on your mortgage) as you refinance, leave all of your equity alone so it can appreciate.

Pay It Down Faster

Biweekly is good
Paying half of your monthly payment every two weeks (26 half-payments each year) turns out to be 13 full monthly payments in a year. That extra payment is the secret behind the power of the biweekly payment schedule. But unless you join a biweekly program that charges steep fees and locks you into that schedule, your mortgage company is not likely to accept half-payments.

You can do the very same thing yourself. Each month when you make your regular mortgage payment, write a second check for one-twelfth of one payment and designate it for “Principal Prepayment Only.” Send the two checks together. Do this every month and in one year you will have made the equivalent of 13 monthly payments—with no fees, no obligations and no lender approval required. This strategy will drop about seven years from your payback term (depending on the other terms) and save you thousands of dollars in interest.

Don’t cash out
The equity in your home is a precious commodity because it is an appreciating asset, providing the housing market keeps going up in your area. Taking out cash through home equity loans widens your debt and increases your monthly payment. You risk owing the lender more than the home is worth. If that equity is money you really need for some other purpose, consider selling your home now and downsizing to a cheaper area. Your goal is to achieve 100 percent equity before you retire. If you keep taking out cash to pay off credit cards or pay for college, you’ll never pay off that mortgage.

Get fixed
Even though interest rates are creeping upward, if you have a primary mortgage and home equity loan with variable rates of interest, refinancing both into a fixed-rate mortgage may be a wise move. With a fixed rate you always know what to expect. Caution: As tempting as it is to cash out some of your equity (the current market value minus what you owe on your mortgage) as you refinance, leave all of your equity alone so it can appreciate.

Expand Your Profit

Widen the gap
You need to maintain a healthy gap between the amount your home is worth and the amount you owe—never less than 20 percent is my advice. Concentrate on widening that gap by paying off your mortgage early and you’ll sail through any market downturn.

Spruce up
While you have no control over housing market values, you can keep your home at the top of your neighborhood’s value by performing routine repairs and maintenance. Even in a down market your home will be more likely to stay at the top of its class when it reflects your pride of ownership.

Keep paying it down
It doesn’t matter if you plan to be in your home for two years or for 20. No matter when you sell this house, your goal should be to come out with your original down payment, plus lots of equity for the next down payment. You want to use all of that money to make the largest down payment you can and take out the smallest mortgage possible. And you want to do that every time you buy. That’s the way to build wealth on an ordinary income.

You can buy and sell a dozen times in your home ownership career, and if you’re careful to move your equity into the next home—just as you move your furniture and other possessions—you should be able to own the last one free and clear, in time for retirement.

Cut Cell Phone Charges

2008-10-18T23:59:00.000-07:00

Get a tuneup:
Instead of purchasing a plan and then forgetting about it, comparison-shop every few months to see if you're paying too much. If you find a better deal, contact your phone company and try to negotiate a more affordable plan.

Dispute the charges:
If there's a fee on your bill you don't understand, call and question it. Be prepared and polite, but be persistant. Take names and lots of notes. If the rep says no, speak with a supervisor. Keep moving up the ranks until you hear a "yes".

Go prepaid:
Got a chatterbox in the family? Switch to a prepaid cell phone, which has a set number of minutes. When you go over, the phone goes dark until the next fill-up.

Buy refurbished:
Did your cell phone get run over or dropped in the toilet? Rather than buying a pricey new one, consider a refurbished phone. Also known as "buyer's remorse phones," these are the cell phones that consumers bought and returned within their 30-day trial period. AT&T offers them for up to 75 percent off popular-model phones.

It's Too Good A Deal to Pass Up

2008-10-18T23:46:00.000-07:00

The truth:
We've all been there-loath to walk away from a 40% off; buy-one-get-one-free; or $10 each, three for $25 specials. But these promotions and others like them (including a discount on your entire purchase if you open up a store credit card and charge the purchase to your new account) almost always entice us to buy things we wouldn't have bought in the first place, or to purchase more than we really need.

What to do instead:
Remind yourself that stores run sales to improve their bottom line-not yours. Always jot a list before you shop, and only go down aisles or into departments that have those things. Ignore markdowns unless you genuinely need the featured item (and if you are required to buy multiples to get the lower price, make sure you'll use them all). Lastly, even if you have a generous coupon to redeem if you use your store card, don't charge more than you can pay when the bill comes-the sky-high interest rates of store cards negate any savings.

This Mortgage Seems Like a Lot Now, But We'll Be Able to Afford it When We Get Decent Raises

2008-10-18T23:39:00.000-07:00

The truth:
Locking yourself into a mortgage that you can't comfortably pay for on your current income can spell trouble in a number of ways. In today's economic climate, sizable jumps in salary are generally hard to come by, and job security isn't guaranteed. You have to realize that you could lose your house if your salaries don't increase like you think they will. And if you're a first-time homeowner, your income may not go as far as you think due to higher utility bills, maintenance expenses and emergency repairs. Stretching yourself too thin also doesn't leave you any leeway if one of you wants to, say, start a business or go back to school, or if unexpected medical expenses crop up.

What to do instead:
Opt for a mortgage you can afford based on present earnings. Limit mortgage payments, including taxes and insurance, to 25% of your gross monthly income-less than the 33% many lenders recommend.

There's No Harm in Borrowing From My 401k and Paying Myself Back

2008-10-18T23:31:00.000-07:00

The truth:
If you borrow from your emploer-sponsored retirement plan, you do not benefit from the tax-deffered growth you would have enjoyed had you left the money in your account. In addition, the cash you use to repay the loan comes from aftertax dollars, which means when you retire and withdraw your money, you will pay taxes on it again. If you can't pay back the loan within five years, you have to fork over a 10% early-distribution fee and pay taxes on the borrowed amount.

What to do instead:
Exhaust every other option-sell off personal belongings, refinance or downsize your home, or borrow from relatives (make a written repayment plan). Tapping your 401(k) should be a last resort.

I'd Love to Save More, but After Expenses There's Just Nothing Left

2008-10-18T23:12:00.000-07:00

The truth:
If you have cash for little extras like gourmet coffee and DVD rentals, you can afford to save if it's truly a priority. Even seemingly insignificant amounts can grow into substantial sums. For exanple, if you save just $15 a week for a year and put it into a mutual fund account that averages a 10% return annually and compounds the interest, you'd have more than $5,000 in five years, over $14,000 in 10 and over $54,000 in 20 years.

What to do instead:
For the next month track everything you spend on incidentals. The fingure out ways to cut back that won't make you feel deprived. For instance, could you borrow DVDs from the library instead of renting? Still go for mani-peds, but little less frequently? Forgo 400 channels and choose a cheaper cable package? Have the amount that you save siphoned automatically from your checking account and deposited into the investment account.

Once I Pay Off My Credit Cards With this Home Equity Loan, I'll Cut Them Up

2008-10-18T22:59:00.000-07:00

The truth:
This is a smart move if-and only if-you have the self-discipline to follow through. Unfortunately, many people don't change their spending habits and run up their cards all over again. Then, in addition to credit card debt, they have a loan to pay off, and now their home is on the line.

What to do instead:
Try to pay off your credit cards on your own by scrutinizing your budget and cutting all nonessential spending. To save on interest, move your debt to a card with a zero-interest transfer rate (scout no-fee offers at websites like bankrate.com and webcard.com). If you ultimately decide to still go the home equity route, vow not to use your credit cards again until the loan is completely paid off.

I'll Mail Out the Bills Tomorrow-One More Day Won't Make A Difference

2008-10-18T22:50:00.000-07:00

The truth:
If one day bcomes two or three-as can easily happen during a busy week-you can end up with late fees as high as $39. And thanks to universal default clauses built into many credit card agreements, just one late payment can earn you a default penalty rate as high as 35% on that account-and allow other creditors to raise your interest rate as well, costing you more in interest every month that you carry a balance.

What to do instead:
If you still pay the old-fashioned way-with paper checks-then you must mail them at least seven days ahead, no exceptions. Online banking is simple, safe and saves time, and even if you're truly against it, register with your bank's online bill-pay anyway, at least you'll have that option if you can't get checks in the mail on time for some reason.

I'll Be Fine as Long as I Keep Making the Minimum Monthly Payment on my Credit Card

2008-10-18T22:42:00.000-07:00

The truth:
Sending just that small amount will end up costing you thousands of dollars in interest and plunge you deeper into debt as time goes on. If you charge $5,000 a year on a card with an 18% APR and pay only the minimum each month, which is 2% of the balance, in 30 years you will have paid $280,000 in interest and still have a balance of $74,000.

What to do instead:
Stop running up additional charges and aim to pay at least twice the minimum amount due. If you need more inspiration to up your credit card payment, consider this: Doubling the minimum will slash the time it takes you to pay off your balance by more than two-thirds.

How to Spot a Scam

2008-10-18T22:26:00.000-07:00

It's just too good to be true:
A free car just for taking a survey? A laptop computer for a single mouse click? No way.

You're a winner....but:
You have to pay a fee to claim your prize.

It's free with shipping and handling:
If it's five or six bucks, fine. But make sure it's not $59.95!

The website offers nothing but free stuff:
It's probably an e-mail collection site for spammers.

There's a lot of fine print:
And you have to agree to accept all the terms.

You have to make a purchase:
To get the freebie.

You must give a credit card number:
To get the free item.

There's a free "trial period":
This may be true, but the company can make it difficult to cancel, and if you forget, wham! You're on the hook.

Some Free Things

2008-10-18T21:48:00.000-07:00

Expert Computer Help:
If you've ever had a computer problem and wanted to pull out your hair in frustration, this is for you. Need to solve a hardware glitch? Want to learn how to use HTML? Submit your question at Protonic.com and you'll get a pretty prompt answer e-mailed to you from a volunteer expert. It's no secret that many computer manufacturers provide support for their own products and charge good money for it. The folks at Protonic are tired of this sort of treatment, and believe it or not, their service is free because they enjoy helping people.

Spam Filter:
Say so long to all those annoying solicitations that clog your e-mail. Spamato, an add-on for Mozilla Mail, does what it can to kill the junk. PC World magazine recently named Spamato one of its 101 Fantastic Freebies. Get your download at spamato.net. The company wants to make spam filtering available to as many computer users as possible.

Business Classes:
Learn everything from how to write a business plan to how to finance your venture through the Small Business Administration's website. Online courses are free and self-paced; they take about 30 minutes each to complete. Free in-person classes are also offered at SBA district offices and resource partners around the country. The SBA was created in conjunction with the government to help U.S. citizens learn how to become successful entrepeneurs. Support comes through financing of SBA loans.

Spanish Lessons:
Want to learn the basics of practical spoken Spanish? Sign up (some classes are 12 weeks) and you'll get weekly e-mails from a teacher with lessons and learning tips. You can also learn French, German, Italian, Portuguese, Greek, Mandarin Chinese and more. Go to bbc.co.uk/languages. The BBC, one of the world's largest broadcasting corporations, is on a mission to enrich people's lives with programs and services that inform, educate and entertain.

Photo Organizer:
Picasa is a free software download from Google that helps you locate and organize all the photos on your computer. You can edit and add effects, share photos with others through e-mail, print them or upload them to the web. It's fast and easy. Originally a pricey piece of software, Picasa was purchased by Google, then made free as an enhancement to the whole family of Google products.

Credit Report:
If you haven't done this already, do it now. Everyone is entitled to one credit report from each of the three major credit bureaus each year free of charge. Go to annualcreditreport.com and follow the directions. You will be offered many options for which you must pay, but stay on target for the free report. Caution: There are dozens of services on the Internet that pose as sources for free credit reports, but they really cost you money. Ignore them. It's mandated by lawe, and this site is sponsored by the three major companies-Equifax, TransUnion and Experian.

Directory Assistance:
If you're tired of paying a fee each time you dial 411, here's your alternative. Dial 800-FREE-411, then follow the prompts to get your desired number by phone or text message. Works for both residential and business listings throughout the U.S. This service is advertising-driven. You dial in, listen to a 10-second sponsored message, then proceed to get the number you need.

Cookbooks:
The popular website Allrecipes.com, which features recipes from home cooks, now offers free downloadable cookbooks for many occasions (listed under Tips & Advice). The pictures are incredible and there are many to choose from. This site derives its revenues through advertising and other sources, so members pay no fees.

Gently Used Stuff:
One person's castoff is another person's treasure at freecycle.org. By joining your local Freecycle chapter, you can get used furniture, household appliances and a variety of other items. Just know that those who take are also expected to give. However, no money is allowed to change hands. Freecycle is a grassroots, nonprofit movement of people committed to helping the environment by reusing goods and keeping stuff out of landfills.

Some Free Stuff

2008-10-18T01:03:00.000-07:00

This post will list websites and what they have to offer for either free, or for the amount of postage and handling.

Family Calendar:
At Famundo.com, you can keep all the information you need at one place. Famundo is an online calendar, address book and message board. The site merges each individual's schedule into one calendar, which you can access with a personal code from any computer. The basic free version is ad-supported but not in an in-your-face way. You can upgrade your account to the "Plus" version for about $10 a month, but it's not required, and you won't be hounded.

Silver Jewelry:
The Silver Jewelry Club offers high-quality jewelry including rings, pendants and bracelets (most of them with genuine gemstones). It really is free provided you pay the shipping charge of $5.99. These are quality pieces, not junk. Giving away jewelry is SJC's way of introducing their products. They also sell their jewelry through wholesalers and stores. You will never receive a single solicitatio from the company.

Online Checking Account:
This is an online checking account that is completely free, with no monthly fee attached. Electric Orange, through ING Direct, is a paperless checking account (no checks or checkbook) that pays you up to 3.4 percent interest on your balance. You can do everything-deposit your paycheck, pay bills, send a paper or electronic check, transfer money-securely online. (Of course, you'll pay a fee if you send paper checks, drop your overdraft line of credit balance below zero or require a stop payment.) ING is looking to add new customers. Because they use no paper and have no branches, costs are low.

Radio Service:
Pandora.com is like your own personal radio service. You type in an artist, and the service plays songs by that artist and others with a similar style. You can't download music, but you can listen and manage your own "stations". The site offers a free ad-supported service as well as a paid option where you don't see ads.

Time-Management Organizer:
Create an up-to-the-minute to-do list complete with reminders via insant message or e-mail through RememberTheMilk.com. Upload Remember The Milk to your cell phone and you'll always have your grocery list with you. And when someone at home adds to the list while you're walking into the store, you'll be sent an update. The majority of the site's features are free, but a subscription ($25 a year) gives you access to some additional premium features.

Wi-Fi Hot Spots:
Would you like to know which restaurants and coffee shops in your neighborhood offer free wireless Internet access? Get a directory at wififreespot.com. It is probably free because they want to build traffic to its site and derives financial support through advertising.

Sheet Music:
Want arrangements of classical pieces for free download? MutopiaProject.org has 1,272 pieces available based on editions in the public domain, including works by Bach, Beethoven, Chopin, Handel, Mozart and many others for piano, guitar, cello, voice and more. This is a labor of love by a team of volunteers who are involved in typesetting the music for electronic distribution. High-quality copies are available for a cost, but you're not pressured to by them.

Business Cards:
Vistaprint is an online printing company known for its amazing offer of 250 free business cards. They're good-quality, too. Visit Vistaprint, create your card and all you'll have to pay is about $5 for shipping. Vistaprint would like you to join their 12 million customers who buy printing online, so they offer this enticement. Just knw that once you get your business cards, you may hear from them a lot.

Some Debt Strategies

2008-10-18T00:37:00.000-07:00

The 10-10-80 Rule:
Even if you are deeply in debt, this formula has you giving away 10 percent, save 10 percent and live the best life you can on 80 percent of your net income. Giving to others who are less fortunate releases gratitude for what you have. Knowing you have money in the bank quells the fear of being broke. Together, giving and saving promotes contentment, which makes you willing to do whatever you must to live below your means.

A Spending Map:

Spay your paychecks on paper before cashing them. This will help you decide where every penny would go, starting with giving and saving, then moving on to essentials such as the mortgage and home equity loan. Pay your bills according to the severity of the consequence if they weren't paid or if they were paid late. After that, move onto optional expenses such as clothes and eating out.

Track your actual spending each month to compare with your planned spending. If you need help with food needs, here are a couple of websites to help out. The Grocery Game, which teaches you how to use coupons effectively. They have lots of other things to offer such as recipes. Angel Food Ministries which is a nonprofit, nondenominational organization that provides food relief.

A Contingency Fund:
The 10 percent can be put into an emergency fund to help relieve your mind knowing that you have money in the bank. Make sure the account brings in interest that helps the amount grow. You may want to pay off your debt with that money, but you can rest easier knowing that money is there if you ever need it.

The Rapid Dept-Repayment Plan:
Here is a method to rapidly repay unsecured debts such as credit cards and student loans. This plan deals with minimum monthly payments. Do not add any more new debt, which means no credit cards. "Fix" your monthly payments at the amount you paid in the first month of the plan. Line up your debts with the smallest at the top. As the first debt is paid off, it's payment is added to the regular payment of the next debt in line. If you pay your debt off at the creditor's schedules, it would take twice as long.

A Freedom Account:
Setting up this account will help you anticipate occasional expenses such as Christmas gifts and clothing. You can estimate these on a yearly basis, then deposit one-twelfth of that amount each month.

12 Ways to Save Money

2008-10-18T00:21:00.000-07:00

1. Think before you buy anything. Do you really need that kitchen appliance? Do you have something at home that does the same, or a similar, job?

2. Reevaluate you insurance needs. See if you can get a reduced premium.

3. Get your haircuts at a beauty school. They cost less than a salon and you will be helping students get more experience.

4. Pay your bills online. You will save money by not needing stamps and envelopes. You will also be saving your time.

5. Borrow your movies from a library instead of renting them or buying them. If you like the movie you borrowed from the library, you can always buy it later when you have the money to spend.

6. Enjoy your local, free entertainment opportunities such as open houses, festivals and fairs.

7. Have your kids pay for their things (cell phones, gasoline and clothes) with their babysitting money, or whatever other job they have. This will teach your kids how to manage their money and save yours from being spent.

8. Replace your soda with water. I use a large jar of instant tea that costs about $2-3 and it last me weeks.

9. Brown-bag your lunches instead of buying them at a restaurant, vending maching or a fast food place.

10. Use your stuff until it is gone. Or you may find you don't really need it after all.

11. Cancel your "maintanence contract" on everything but your computer.

12. Sell castoffs at yard sales, resale shops and Craigslist. You can give things to charity to take advantage of the tax reduction.

Audit Alert

2008-10-14T02:19:00.000-07:00

There are two ways the IRS may ask you for more information. "Correspondence audits" are conducted by mail and require taxpayers to send back additional documentation. A "field audit" requires a taxpayer, or her representative, to sit down with an IRS agent and provide receipts that substantiate all the deductions and credits on the tax return. If you're audited, answer the questions as specifically and briefly as you can-and don't offer information that the IRS hasn't asked for. Anything you bring up becomes open to further IRS questioning.

Relocation

2008-10-14T02:16:00.000-07:00

Moving expenses are deductible if you change locations for work and meet this distance test; Your new job location has to be at least 50 miles farther from your former home than your old job location was from your former home. Write off costs of packing, transportation and lodging en route.

Hurricane Relief

2008-10-14T02:12:00.000-07:00

Did you house a Katrina evacuee in your home for 60 days or more without charging rent? You can take an additional personal exemption of $500 per individual-up to $2,000 for housing four people. Fill out form 8914, which will ask for details about those you've helped, such as their Social Security numbers and former addresses. If you used your car to provide disaster relief to Katrina victims, deduct 32 cents per mile.

Fuel-Effecient Cars

2008-10-14T02:10:00.000-07:00

An energy-efficient hybrid vehicle bought on or after January 1, 2006, might qualify for a credit. Go to irs.gov to see the list of IRS-approved vehicles and the amount you can deduct.

Home Improvements

2008-10-14T02:05:00.000-07:00

The Energy Policy Act of 2005 made tax credits available for many types of home improvements, including insulation; replacement windows; high-effeciency central air-conditioning units; and high-effeciency fans for cooling and heating. The maximum credit is $500 during the two-year period beginning January 1, 2006, and ending Demcember 31, 2007, and you can use up the credit in one year or spread it out over two years. Those who've installed solar panels, solar water heating equipment or a fuel-cell power plant can take additional credits.

Mileage

2008-10-14T02:01:00.000-07:00

If you use your car for unreimbursed business travel, make sure you deduct 44.5 cents per mile. If you volunteer for charity and drive to and from the location, deduct 14 cents per mile.

Telephone Tax Credit

2008-10-14T01:55:00.000-07:00

Thanks to the Federal Excise Tax change, telephone customers will no longer be taxed on their long-distance and bundled services, including prepaid phone cards. You can claim a one-time credit or refund on your return for the taxes you paid after February 28, 2003, and before August 1, 2006-without showing any records. For individuals it's $30; if you have four or more exemptions, it's $60. Or go through your phone bills for that three and a half year period, assuming you've kept them, and claim the total amount you paid in federal excise tax.

Tax Mistakes: Failing to File Because You Can't Pay

2008-10-03T00:01:00.000-07:00

This can be costly. When the IRS catches up with you, you'll be charged not only the tax owed, but also a failure-to-file penalty (5%) and interest (at the end of 2006 it was 8%). The solution? Submit your return, paying as much as possible. The contact the IRS and ask to create an installment agreement, which will allow you to pay off your debt, with interest, over a period of months. Go to IRS to get form 9465 or call the IRS customer sevice hotline at 1-800-829-1040. It costs $43 to set up the plan.

Tax Mistakes: Declaring a Child a Dependent Who Isn't

2008-10-02T23:58:00.000-07:00

Whe the IRS detects the mistake, you'll get a smaller refund or a higher tax bill, because they'll recalculate your return. Plus, they may charge a penalty, based on the taxes owed and the reason for the error, along with interest on the unpaid tax. A full-time student up to age 24 is still considered a dependent; otherwise, the cut-off age is 18. In cases of divorce, the parent who has residential custody for more than six months of the year is the only one who can take the deduction.

Tax Mistakes: Choosing Not to Itemize

2008-10-02T23:54:00.000-07:00

Some people assume, incorrectly, that they're audit-proof if they use the standard deduction rather than itemize; others don't want to put forth the effort. But why pay extra? If your deductions add up to more than the standard deduction-$10,300 for a married couple filing jointly; $7,550 for a single parent with a dependent child; or $5,150 for single taxpayers or married taxpayers filing seperately-itemize.

Tax Mistakes: Mailing a Paper Return Without Getting a Receipt

2008-10-02T23:49:00.000-07:00

The burden of proof that you sent your return rests with you. Send it "certified" so you have proof and can't be charged late fees or interest. Also be sure to make a copy of the return for your records.

Tax Mistakes: Filing a Sloppy Return

2008-10-02T23:44:00.000-07:00

If you hand-write your return, the risk of making a mistake is much higher than if you file electronically. The three most common problems-math errors, wrong Social Security number, and failing to sign the return-slow your refund because the IRS has to contact you to fix the mistakes. Plus, a sloppy handwritten return is more likely to need correctioons because the info cannot be easily deciphered and entered into the IRS system. But if you file electronically, the process is speeded up, so you get your refund sooner. Go to IRS for more information.

Money Mistake #5: I Forgot What I'm Worth

2008-10-02T23:19:00.000-07:00

If you're a stay-at-home mom or you work part-time, you may not have enough life insurance. Many women are underinsured because they've underestimated their income or the value of their contributions to the household.

A rule of thumb to determine the amount of insurance coverage that you need-multiply your annual expenses by the number of years until your youngest child will turn 18. Some parents may also want to factor in the future cost of their kids' college. Life insurance premiums actually have plummeted in recent years. So if you're a healthy non-smoker in your 30s or 40s, you can now buy a $500,000 term insurance policy for about $40 a month.

You and your partner should visit your insurance coverage annually-or at least after a major event like the birth of a child. It takes a lot to run a household, and you want to be covered.

Money Mistake #4: I Never Saw a Windfall I Couldn't Spend

2008-10-02T23:02:00.000-07:00

Whether you receive a raise, a tax refund, or a generous birthday check from Aunt Dotty, it's hard not to view a windfall as a excuse to go shopping. Splurging can be fun, but that's rarely the best use of your extra cash. Few Americans are saving enough to cover day-to-day crises, never mind the future.

To make sure you don't feel deprived, earmark some of the newfound money for a modest treat (Aunt Dotty would want it that way), using 5 or 10 percent for something fun. That way you do something for yourself, while deciding what to do with the rest.

Put the remainder of the money where you won't be as tempted to touch it. Consider an FDIC-insured, high-yield online savings account such as the one offered by ING Direct. It has no minimum balance required or fees, and this account typically pays higher-than-average interest rates.

Next, consider where the money would do you the most good. Tackle any small, urgent problems first-a sore tooth, the clunking sound your car makes, leaky windows. This will help avert the hardship of paying for a string of bigger expenses later on as little problems snowball into debt.

Set aside some of your windfall for expenses that you can't predict precisely but you know will be coming sometime. You may not know when your cell phone will quit or the water heater will break, but they will.

Two Money-Management Sites to Check Out

2008-10-02T22:49:00.000-07:00

Below are two money-management sites to try out.

Mint
Geezeo

You pick a login name (real names are not required) and password, then you list the accounts to monitor. The sites don't store your other passwords or account information. They use secure, third-party banking services to download data. So the risk of identity theft is no greater than if paying bills online. You can't transfer funds, but you can see a list of transactions or tallies for your spending categories. Mint is more user-friendly. In minutes, you can see your recent transactions and set spending limits.

Geezeo isn't easy to navigate, but you join discussion groups and post "money confessions". It's live online staff is helpful though if you have questions.

Money Mistake #3: My Kid's Budget Runs Over

2008-10-02T22:21:00.001-07:00

Many parents find themselves wrestling with financial discipline when it comes to their children. Whether it's snacks for the little ones at the market or new skate shoes for your tween, it's amazing how quickly saying yes can add up.

Here's how to fix it. Rather than simply saying no to your kids' endless wish lists-which can lead to wrenching battles-protect your budget and sanity by teaching your children Money Management 101. Distract and delay tactics work especially well for children ages 6 and under. If your young daughter is jumping up and down for something she wants at the store, try focusing her attention on something else, or acknowledge what she wants and say that you can talk more about it later when you're home. You may endure a little bit of complaining, but your child gets an important message about not buying things on a whim.

Money Mistake #2: I Throw Away Cash

2008-10-02T21:56:00.000-07:00

Who would pass up free money? Maybe you, if you make only the minimum contribution to your employer's 401(k) savings plan-or opt out of the plan on the grounds that money is tight. Puny 401(k) contributions mean you aren't taking full advantage of any free matching funds your company offers. If your boss offered to add $25 to your weekly paycheck, would you turn it down? Of course not. Most employers match all or part of the first 3 to 6 percent of pay employees contribute.

That might not sound like much, but take a look at the math. Assume your company will kick in 50 cents for every dollar you put in, up to 5 percent of your salary. If you're 40 and making $40,000 but decide not to fund your 401(k), you could be giving up almost $230,000 over 25 years.

Here's how to fix it. If money is so tight you can't imagine saving two bucks, start small. You don't have to put the maximum $15,000 anual contribution ($20,500 if you're 50 or older.) Instead, increase your contribution by 1 percent of pay a year, until you get the full match. One painless way to save: When you get your next raise, use all or part of it to bump up your 401(k) contribution.

If your employer doesn't offer a match, that doesn't mean you should skip making contributions. Remember, a 401(k) lets you put away money tax-deffered. This doesn't just lower your current tax rate, your earnings can really grow, because Uncle Sam isn't taking a bite out of them.

Money Mistake #1: My Money is Disappearing

2008-10-02T21:20:00.000-07:00

No one starts the month planning to fritter away a small fortune, but that's what can happen when minor expenses spiral out of control. It's not just shopping at an expensive store that gets you into trouble. Seemingly innocent purchases-$15 jeans at Target, a few things for the kids at a two-for-one sale, the occasional Frappuccino-can do real damage to your bottom line.

What does it take to waste $10,000 a year? Just $27.40 a day. You can undermine some of your most important goals with purchases you'll never remember.

How do you fix it? Know yourself financially. First step: Take five minutes and read thrugh your latest bank statement. If the transactions seem unrecognizable and you have no idea why you went to the ATM a dozen times, spend a week tracking your spending (longer, if possible).

You can use a notebook, keep receipts in an envelope, try software like Quicken, or check out an online budgeting tool. Whichever you choose, find a money-tracking method that lets you see your purchasing patterns with fresh eyes.

Debt Reduction Tip

2008-10-02T01:54:00.000-07:00

Roll high-interest debt from your different credit cards to a single card that has a lower interest rate and no annual fee.

Cut Energy Costs

2008-09-10T23:22:00.000-07:00

Unplug your cell charger when it's not juicing the phone. If left in the outlet, it consumes energy and you'll have to pay a little extra on your next electric bill.

Review Insurance Policies

2008-08-19T23:05:00.000-07:00

First Things First
Check that coverage levels and beneficiary designations are up-to-date. Your life insurance should allow your family to maintain its current standard of living in the unthinkable happens and you or your spouse dies. Ideally, benefits should generally provide around 10 times the annual salary of the breadwinner, but invest in as much as you can possible afford.

If you work, also make sure you have disability insurance to cover loss of salary in the event of illness or injury. Calculate the amount and type of insurance you need at Life-line.org. As for your homeowner's policy, check that it reflects the current replacement value of your home. If you've done extensive remodeling, speak up. Also mention any recent big-ticket purchases. Homeowner policies have to set limits on things like jewelry and art. To further protect such items, you'll need a policy addendum-known as a rider or floater-which can cost anywhere from $25 a year up, depending on what you're insuring.

Short-Term Strategy
Workplace life insurance policies usually cover you only for the amount your annual salary, so it's wise to buy a supplemental policy (often available from your employer at discounted rates). If you already own a term life insurance policy (traditionally the cheapest and most popular type), check to see when the guaranteed initial premium period expires, because costs can increase dramatically after that-anywhere from 7 to 10 times what you're paying now-and continue to rise every year. If you're toward the middle or end of your term, and in good health, it may be worthwhile to switch over to a newer, more cost-effective term life insurance policy or a more permanent form of insurance, for which there are generally no medical requirements.

Long-Term Solution
Periodically call insurance agents and ask about discounts. For example, updating old wiring can lower your homeowner's inusrance rates. Auto insurers often offer discounts to good students-great to know if you're insuring your teen-and occasional drivers.

Make the Most of your Health Plan

2008-08-14T23:34:00.000-07:00

First Things First

Keep detailed records of all medical and dental costs so that when your company holds its next open enrollment (usually in the fall), you'll be able to pick the health plan that best suits your needs and spending patterns. For example, if you go to the doctor much less now that the kids are a little older, you might switch to a plan that has higher co-pays and deductables but takes less out of each paycheck. But if your child has recently been diagnosed with a chronic illness, like asthma or diabetes, it will likely be worth it to pay a higher premium for a plan with prescription coverage and lower co-pays to defray the cost of frequent office visits.

Short-Term Strategy

Unless you've experienced a qualifying life event, such as a marriage, divorce or job change or loss, you're probably locked into your health benefits for this year. But it's always a good idea to know what else is available before it's time to reenroll, or in case you switch jobs. If you're not already utilizing Flexible Spending Accounts (FSAs) offered by your company, you're
passing up the chance for a tax break. These allow you to contribute pretax dollars to use toward approved health care costs (like deductables, co-pays, eyeglasses and braces) or dependant care costs (such as after-school programs and summer camps).

Long-Term Solution

Have every family member get a thorough checkup to help prevent hefty medical bills down the road. And vow to take advantage of any perks that come with your plan. Surf your health insurer's website for info; a lot of insurers promte wellness by offering discounts on gym memberships, yoga classes or consultations with nutritionists.

Size Up Spending Habits

2008-08-14T23:12:00.000-07:00

First Things First

Track household expenses so you know exactly where your money is going. Review online bank statements, checkbook ledgers and credit card bills, and record every cash purchase in a notebook for 30 days.

Organize everything in one master document: At the top write your monthly salary and any other income, like child support. Then itemize all living expenses under broad categories like housing, utilities, food and so on. (Foe help, go to Metlife.com: In the Life Advice Series section on the home page, click on More Topics, then Financial. Net, click on About Creating a Budget and look for Monthly Expense Record.)

Tally everything and compare the figure to your total earnings. Obviously, income should exceed expenses, but don't be surprised if it doesn't. The average person spends 10% more than they earn. Even if your income does cover everything, this is a good opportunity to rejigger your spending so you can save more toward a dream vacation, college fund or bigger house.

Short-Term Strategy

Scrutinize each category to see where you can cut back. Start with big-ticket items. Can you reduce mortgage payments to refinancing? Could you switch to a cheaper cell phone plan? Next, go over smaller cash outlays. If you nixed just one $20 fast food run per week (pulling dinner fixings from the pantry, instead) you'd recoup over $1,000 a year.

To guide your efforts, create a budget, using the same categories you had on your monthly expense log. Allot specific amounts for necessities, then set reasonable limits for things like entertainment or eating out. Allowing yourself some amount of fun money is the key to not feeling deprived.

Long-Term Solution

Reevaluate your budget quarterly and adjust spending when necessary. Mark financial reviews on your calendar and try to think of them as an opportunity instead of a chore. This is a chance for you and your partner to reevaluate your dreams and stay on track for reaching them.

Avoid Expensive Fabric Softener Sheets

2008-08-14T22:03:00.000-07:00

Instead, lightly dampen an old sock with diluted liquid fabric softener, squeeze it out and toss in the dryer with each load. Even cheaper, pour in 1/2 cup white vinegar with the final rinse.

Reduce Paper Clutter

2008-08-14T02:10:00.000-07:00

Reduce the temptation to spend money and cut down paper clutter at the same time by signing up at catalogchoice.org. The free service lets you stop catalogs you don't want to receive.

Should I transfer my higher-interest credit card debt to a 0% credit card?

2008-08-14T00:18:00.000-07:00

It's tricky. It depends on your situation, and the terms of the new 0% card. If you're transferring a balance you are fairly certain you'll be able to pay off in a year or less, perhaps you should consider the switch. But first make sure you read every word of that fine print and that you fully understand it.

Is there a transfer fee? A 4% fee on a $5,000 balance is $200 right up front. Ouch! and be sure to determine how long the 0% "teaser rate" lasts. If it's only 60 or 90 days, when it expires you could wind up in a worse situation than you have now. More seriously, what is the default rate, and could you handle it if something unforeseen happens and you fall behind?

If you are determined to pay the balance in full within, say, the next six months and there is no transfer fee, you just might come out ahead. Bottom line: With credit card accounts, it's always a gamble.

Should I REALLY put money into savings even though I have a lot of credit card debt?

2008-08-14T00:12:00.000-07:00

Absolutely. You need an emergency fund-a stash to cover at least three (ideally six) months' worth of expenses-that will be there when you find yourself in a financial pickle. If you don't have enough money to cover stuff that happens (trust me, stuff always happens), you'll keep running to credit cards for a bail-out. You'll never get out of debt if you keep adding new purchases. Start saving immediately-a little bit all the time-and soon you'll kiss your credit card debt goodbye for good.

Credit cards appear to be so easy and convenient. But it takes discipline, knowledge and personal restraint to use a credit card well. It's like walking a tightrope-one false move and you crash. Cash sounds so much easier, doesn't it?

Should I take out a home equity loan to pay off my credit cards?

2008-08-14T00:02:00.000-07:00

No, and here's why: If you fall behind on your credit card payments, the bank or credit company will charge you fees and penalties and trash your credit report. And that's about it. But if you transfer that unsecured debt to your home by means of a home equity loan and then run into a rough patch, you could find yourself on the street.

Defaulting on a home equity loan is serious and can lead to foreclosure. Also, you need to remember that your home's equity is an appreciating asset. The goal of home ownership is to eventually achieve 100% equity-that's when you can burn the mortgage and throw a party. You'll never reach that goal if you keep treating your equity like a big ATM or secret savings account.

Ways to Save $50

2008-08-13T23:26:00.000-07:00

1) Don't spend any $5 bill that comes into your possession. Put them into savings of some kind, and they will quickly add up.

2) Unplug your second computer, microwave, radio, shredder, spare phone, toaster over, second TV and numerous other appliances that you don't use daily. Plug them in only when you need them.

3) Ditch your cable premium movie channels. Instead, wait until the entire season of a show is on DVD and rent it.

4) Do without just one luxury for a month.

5) Instead of searching your pocket/purse for exact change, make sure you receive change. Every few days, put your change into a container. You can save on average $10 a week. It's so fast and easy, and adds up to $50 in no time.

6) Pay for every purchase (groceries, books, gifts) with a Visa card that gives you one rewards point for every dollar you spend. Then, pay the balance in full at the end of the month, so you don't pay any interest.

7) Think only as big as your wallet, not your bank account. On payday, withdraw a certain amount from the ATM, then use that cash over the next two weeks, whether at the gas pump, or a dinner out. Anything that's left, goes into savings.

8) If you don't really need the towel service and largest locker at the gym, trim back your membership to something more basic.

9) Browse the "free" listings on Craigslist.com or the Freecycle Yahoo! Group, or look for local bargains in your area.

10) Take advantage of your employer's offer of a free bus pass, if they offer them.

11) Use those hefty coupon books that are sold for school fundraisers and save on purchases from drive-through restaurants to bowling. The monthly $5-off coupon for teh grocery store can save you $60 a year alone. Also, get E-mail coupons from stores that you frequent, like Barnes & Noble. Keep them handy so you don't forget to take advantage of them.

12) Do comparison shopping on the spot. When you're in a store, you can use your Blackberry's web connection to check if what you want is available for less from an online retailer. Sometimes your local store will match the best online price.

13) Shop off-season and in bulk.

14) Many people find mistakes in their monthly credit card bills. Check your statements diligently for errors.

15) Some cell phone companies let you change your services without charge. If you travel a lot in one month, switch to a plan that includes more minutes, free nationwide calling and no roaming charges. When you're back home, revert to your less-expensive local plan.

Save Money: Manicures and Pedicures

2008-08-13T01:37:00.000-07:00

If you want to limit how many times you go to an appointment for manicures and pedicures, simply rub Vaseline on your fingernails and toenails before you shower. It protects the polish from water and keeps your cuticles soft.

Understand Your Credit Rating

2008-08-13T01:24:00.000-07:00

First things first

Check all your credit reports, which are the primary tool that potential lenders use to evaluate you as a credit risk. Three bureaus-TransUnion, Equifax and Experian-generate these documents, and by law you are entitled to a free copy of each annually at AnnualCreditReport.com. If you notice inaccuracies, such as open balances that have already been paid off or accounts that aren't yours, contact the report-issuer immediately.

Short-term strategy

Boost your credit rating by paying bills on time and making more than the minimum monthly payment on credit cards. For example, if you owe $8,000 on a card with 18% interest and a minimum payment of around $320 per month. If you kicked in just $40-$50 more a month, you'd save about $2,600 in interest and pay off your debt completely in 31 months, as opposed to 14 years. But even paying an extra $10 a month helps. If you have several cards, consider consolidating to a single one with a lower rate and no annual fee. Camparison-shop online at websites like Bankrate.com and Cardweb.com; then call your current card company and try to negotiate a lower rate before switching. But don't consolidate too often or you could actually damage your credit score. Lenders like to see some longevity with creditors.

Long-term solution

Instead of running up credit card bills, use cash or a debit card for everyday expenses. Use credit cards only for purchases that you can afford to pay for in full by the end of the month.

Unique Storage Boxes

2008-08-13T00:43:00.000-07:00

Instead of buying the pricey storage bins, cover different size shoeboxes with wrapping paper to create unique containers. Each is individually labeled and filled with various objects.

Save Money: Mortgage

2008-08-12T23:52:00.000-07:00

Pay the points

With most home loans, the biggest expense is the interest. One of the best ways to lower that expense is through the wise use of discount points-the upfront fee paid to the lender. One discount point equals 1% of the loan amount. Generally, the more discount points you pay up front, the lower the interest rate. This is also known as "buying down the loan." A good rule of thumb: if you can recoup the cost of the points within about the first two years through the lower monthly payments, go for the points.

Example: You can get a 30-year fixed-rate $200,000 mortgage for 5.75% plus 2 points (which cost about $4,000), or 6.75% with no points. If you go with the lower interest rate you save $130 a month. It will take you about two and a half years to recoup that $4,000 you had to pay up front to get the lower rate. However, over the following 28 years you will save $46,818 due to the lower interest rate and paymens.

Prepay the principle

Each month when you make your regular mortgate payment, write a second check for one-twelfth of the regular mortgage payment. Do this every month and at the end of one year you will have made the equivalent of 13 monthly payments. On a 30-year $200,000 mortgage at 6.75% interest, this tactic pays off your mortgage in 24 years and saves a whopping $62,750 in interest.

Go short-term

Although your monthly payment may be higher, you can save tens of thousands of dollars in interest by shopping for the shortest-term mortgage you can afford. For each $100,000 you can borrow 7% annual percentage rate (APR), for example, you will pay over $75,000 less in interest on a 15-year fixed-rate mortgage than you would on a 30-year fixed-rate mortgage.

Drop the PMI

Private Mortgage Insurance (PMI) is extra insurance lenders require from most homebuyers who obtain loans that are for more than 80% of their new home's value. However, thanks to the Homeowner's Protection Act (HPA), PMI is now automatically cancelled once your mortgage is paid down to 77% of the original value of the property. Typically, PMI premiums range from $250 to $1,200 a year.

Save Money: Credit Cards and Banking

2008-08-12T23:30:00.000-07:00

Pay early

Most credit card companies compute interest charges based on your average daily balance, so making your payment early in the billing cycle (as soon as you receive your statement rather than waiting until the payment is due) will save $5, $10, or even more a month. Why? Because you reduce the daily balance for more days in the cycle.

Just ask

Tired of paying 16% interest on your credit card balance? Pick up the phone and call customer service (the number is on the back of your credit card). Ask for a lower rate. If you have good payment history, chances are they'll lower it on the spot. The difference between 18% and 7% on a $5,000 balance is $46 a month, or almost $600 a year.

Fight the fees

If your credit card issuer smacks you with a fee, don't be shy. Nearly all banks will waive at least one late fee ($15-$39) or over-limit fee (up to $39), but you have to ask. If you're paying an annual fee (anywhere from $50-$300) just to have the card, ask to have that waived too.

Pay online

If you pay 15 bills a month by mail, you're spending at least $75 a year in postage. Most large banks offer free online bill paying for customers that lets you pay any vendor directly online. Go to your bank's website or the vendor's website to learn more.

Save Money: Phone, Internet, TV

2008-08-12T21:23:00.001-07:00

Bundle Up

Combining your cable or satellite TV, Internet service and long-distance telephone into one bundle may cost you far less than you're currently paying for each service seperately. Depending on where you live, you may be able to get this kind of "triple-play" deal for about $99 a month instead of the $130 or so you're probably spending now. Call your cable or satellite company and do the math.

Buy Online

Time to replace that cell phone? Before you walk into the carrier's retail store, visit the web. Online wireless retailers offer the same phones and the same service plans for all the major carriers-but for a lot less because they don't have to cover the overhead of a brick-and-mortar store. The average cost savings on cell phones at LetsTalk.com, an online retailer that represents all the major service providers, is more than 70%. For example: The AT&T Tilt phone is $299.99 at the AT&T store; at LetsTalk.com, it's $99.99.

Use Prepaid Mobile

If you talk for fewer than 200 minutes a month, paying $60 a month for your wireless service plan (the national average) is too much. Switch to a prepaid cell phone plan. Most wireless providers like T-Mobile and Verizon offer plans that let you buy a minimum number of minutes, sometimes as little as $10 worth, and use them as you need them. You're not required to buy more for a year. The best part? No contract, no monthly bills.

Drop The Frills

Why are you paying for premium TV channels you rarely watch? Cut back from that big premium package ($100 or more a month) to basic service (about $45) and it's likely you'll have all the channels you need plus time to read a book. Go no-frills with only broadcast channels from your cable company (around $15) and rack up even more savings. How much? Dropping just one premium service could net you on average $150 or more a year, while going the no-frills route could save you about $1,000 anually.

Subtract The Add-Ons

caller ID, call waiting, three-way calling, voice mail-all those add-ons to your home phone sevice are costing you dearly. Do you really need (or even use) them? At even $5 extra a month per add-on, dropping one will add up to $60 a year, or a whole lot more if you drop the others too.

Get Prepaid Long Distance

Buy a prepaid long-distance card (about $20 at Costco for 700 minutes-that's 11 hours of chat at 2.9 cents a minute) and you can cancel the long-distance package on your landline phone that's costing you $40 a month or more. Goodbye, mystery fees, pricey per-minute charges and billing disputes.

MP3 Players

2008-08-12T04:12:00.000-07:00

This post doesn't really have anything to do with saving money, but it can (I'll explain in a little bit). The post is more for saving space in your dorm (if you're a college student) or room.

If you don't want to waste space in your dorm, or your room, invest in a MP3 player. You can put lots of songs on there, so before leaving for college, put all the songs you love onto the player, that way you can use the otherwise used space, for something else. I mean, who would want to tote around all those CDs, which can potentially be stolen if anyone broke into your personal space?

Now, the part about saving money. Many of us spend about $20 on each new CD we buy. Those CDs usually have only 3-6 songs we actually like. So, instead of spending money on those, you can download specific songs from the Internet for usually 99 cents-$1.99 each. That is a lot of money saving in the long run.

Saving Money on Tools

2008-08-12T04:07:00.000-07:00

Don't spend money on tools that you'll only use a few times a year. Instead, arrange with neighbors to swap or jointly rent things like carpet cleaners, electric drills and floor polishers.

College Prep

2008-08-11T23:22:00.000-07:00

With so many of us going back to college soon, I have come up with a preparation list for those who will be staying in the dorms. I have never seen a dorm myself, but I got a basic idea of what is needed. I'll start of with things every dorm dweller needs, then as the lists go on, the less they are needed. I will add more as I think of it.

Basic
Clothes
Twin size bedding (most dorms have twin sized beds, two if you have to room with someone)
Pillow
Prescription Medicines
Toothbrush
Toothpaste
Floss (or Pluckers for those who cannot get the floss between their teeth)
Mouthwash
Shampoo
Deodorant
Comb/Brush
Razor and Shaving Cream
Duffel Bag (or backpack) for your classes
Alarm Clock
Wastebasket
Toilet Paper (if your dorm has an attached bathroom)
Notebooks (best with notebook paper, dividers, pencil bag, pencils and pens in each)
First Aid Kit
Shower Caddy (if the bathroom is not in your dorm. Like a shared bathroom. Then you can carry what you need with little difficulty)

Useful Items
Small Bookcase (to hold your notebooks/textbooks in)
Small Desk (for work space)
Shoe Rack
Dry Erase Board (great for writing down appointments)
Door Mirror
Safe
Storage Carts/Drawers
CD/DVD Storage
Plastic Totes

Decorative
Curtains
Rugs
Throw Pillows
Wall Clock
Clip on Lamp

Decorating: Cheap Frosted Windows

2008-08-11T22:03:00.000-07:00

Lots of people wants to have frosted windows, but sometimes, they are just too expensive. Here is a simple way to get the look without the price.

Frosted adhesive plastic applied to bathroom windows (or any other window) is a great way to add privacy to windows, yet let in natural light. Find some ideas at Decorative Films.

Decorating-Cheap Window Shades

2008-08-11T21:58:00.000-07:00

This tip is for making a decorative shade.

Lay the shade flat and tape on a stencil. Starting at the bottom, apply paint to shade with a stencil brush. Easy as that! You can find stencils at Designer Stencils.

Failing Economy-Entertainment

2008-08-11T21:55:00.000-07:00

With this recession America is going through (even though many say it isn't a recession), it is very difficult to go anywhere to have fun. Here are my tips for getting through it.

1) I'm a fan of the 99 Cent store. They offer DVDs and CDs for 99 cents. Chances are, you probably haven't heard of many of these, but there are some good finds there.

2) Wal-Mart of course offers the $5 bins back at the electronics department and sometimes at the front of the store near the cash registers. I browse through these regularly and find a lot of great movies that was once $20+. At the Wal-Mart I go to, they also have shelves full of movies for $1 near the magazines.

3) Buy a Blockbuster card and save money renting video games and movies. That let's you save money and helps you decide if you want to buy to own the game/video later on when you have enough money.

4) Garage sales and flea markets are great places to buy things for entertainment because they are usually sold for much less than new items.

5)Internet sites. Ebay, Amazon, ect. You can finds lots of rare items on those websites at decent prices.

That is all I can think of for now. If I find anymore ideas, I'll edit this post and add onto it.

Recipe: Italian Egg and Potato Skillet

2008-08-11T21:53:00.001-07:00

Saute diced potato and chopped onion in a little oil until almost tender. Add diced zucchini and cook until tender. Make 4 indentions in the mixture and break an egg into each. Cover and cook until eggs are cooked through.

Recipe: Simple Stir Fry

2008-08-11T21:52:00.001-07:00

Brown a little ground beef or turkey with chopped garlic. Add shredded cabbage, bagged frozen stir-fry vegetables, some water and a pinch of ground ginger. Cover and cook until vegetables are heated. Drizzle with soy sauce and serve over brown rice.

Finances: Organizing Your Finances

2008-08-11T21:51:00.001-07:00

The most useful thing to buy is one of those clear plastic tote bins with the handle. Then, buy some manilla folders. If you keep all your financial papers, such as receipts and bills, in a box or something, go through the box and put the papers into stacks with like items.

Next, label folders with whatever you need , such as medical bills, phone bill, ect. and put the right stacks into the right folders.

For the smaller bills, go ahead and buy a small index card box and the little dividers that can go in them. This box is to keep your reciepts in. That way, at the end of the month you can go through each divider and see how much you spend that month, and what you can eliminate or at least buy less of. Write down things such as gas, groceries, restaurants, ect. and put the correct receipt into the correct divider. If you do this, you can see how you can spend money more responsibly.

These tips may not seem like much, but in the long run they work at saving money.

Welcome to the Blog

2008-08-11T21:42:00.000-07:00

This blog was created to help everyone learn how to save money. I will be including simple recipes that do not take much money to make, decorating tips and financial advise with credit cards and the like. I hope you all enjoy the blog and find some things worth your time reading.