Money Talk Daily

Archive for the ‘Planning and Budgeting’ Category

You could lose your car if you miss a single payment

If you need to raise a few thousand dollars and you can’t get a regular bank loan, you might be tempted to apply for a car title loan. You put up your vehicle as security, and then just pay back the money over the next few months. There’s no credit check, and you don’t even have to give your bank details. Sounds good, right? Not really, and it could be easy to get an auto title loan, but you must be aware of the risks of borrowing.

Interest rates can be high

In some states, interest on consumer financing products such as auto title loans is capped at 30-36 percent a year. However, lenders will compensate by charging steep fees if you are late in payment, and for issuing loan documents and verifying no outstanding loans or liens on the vehicle.

APRs (Annualized Percentage Rates) on title loans can be 300 percent or more. In Illinois, for instance, rates are not regulated and can be up to 700% per year. The interest rates can be manageable, just like with payday loans, if you’re able to pay the loan off within a month or two. Because car title loans are often for several thousand dollars, borrowers can find themselves extending the loan several times, and going deeper into debt as interest adds up.

Be aware of scams

Car title loans are illegal in several states, but there you might be offered a “motor vehicle line of credit” or “sale and leaseback” deal instead. Though they’re similar to car title loans, as they are not permitted you don’t have legal recourse if the lender decides to seize your vehicle even if you have made payments when due.

Even though it’s against the law for any title loan issuer in the United States to charge you a fee when they repossess your car, some will still demand payment. In some cases, borrowers have had to pay cleaning charges, as well as hourly rates for someone to come and pick up their cars, plus mileage and towing fees.

“Pay up or lose your car”

When you pawn your jewelry to raise some cash, you know you have to go back and make regular payments or the pawn shop will confiscate your valuables and sell them. Well, a car title lender can do the same thing with your car. In other words, missing even one payment, you can lose a vehicle worth thousands and you can be out of transportation. That is a large risk to run.

Some lenders will sue you instead, which means you don’t have to give up the car – as long as you can pay the entire amount you owe them, plus court costs and other legal fees – and of course that can be a challenge when you’re strapped for cash. Before signing any title loan papers, you must check the fine print for details on the penalties for late payment or non-payment. Can the car be seized by a loan company if payment is just a day late? Will they hike your interest rate instead? Can they track you with GPS and disable the engine remotely if they aren’t paid yet?

Try to find the money somewhere else

The risk of losing your car to a title lender is so high that, for most people, it’s worth making the effort to borrow from a different source. Think about applying for a payday loan, which doesn’t require you to put up your car as security. You might be eligible for an affordable credit union loan or for government assistance. How about having a garage sale or selling some things on eBay?

It’s hard to live without your car, so don’t risk losing yours just because you can’t manage the repayments on a title loan.

Decreased incomes

Many people have been complaining over the past year that incomes are dropping. This is the truth for many people who already have jobs. There are people who are living on unemployment benefits after facing job losses. Incomes are dropping but not expenses. The fact is, that expenses have been increasing all the time. A marked increase has been seen in the prices of consumables, utilities and food. Development of cash management skills quickly is the need of the hour. Household budgets cannot be controlled without these skills and that, cannot be ignored. To maintain a semblance of control over your budgets, here is what you can do.

Prioritize Household Purchases

Every purchase you make will affect your household some where down the line. Planning your expenses effectively will take you a long way. Every dollar saved is a dollar earned and this should be considered. When planning your budget, include basic goods and services. Your cause will be helped by ridding yourself of any thoughts about luxuries. These should be made to wait until you can afford it. You must leave out every commodity that is not important out of your shopping list. Your impulsive spending will have been reduced, releasing your budgets for debt repayments, by doing this.

Look Around for a Better Deal

Markets are also facing the same strain everyone else is. Shopkeepers are looking to get more consumers walk into their stores. Discounts and offers are available at the drop of a hat, so look around before you start shopping. Start your day early to give yourself plenty of time for leisurely shopping. When you can find lower prices for things that you intended to buy anyway, your budget will also be trimmed to size.

Cut Back on Borrowing Funds

Borrowing money increases your household expenses, because they must be paid. Making the payments on the specified date will leave you short of cash for the month, which affects your entire household budget. Reduce all loans that you have, which includes those from credit cards and other sources. By making purchases in cash, you will know exactly what you have spent. You will also not be liable to pay extra charges you face if you default on payments in the future.

Reducing the Costs of transportation

The average American household has two cars. The owners may be burdened with car and gas payments, while this may look impressive to others. It may not be a practical solution to suggest that families reduce the number of cars they have. The use of these cars can certainly be cut down and this should be looked at. Using public transport, or even signing up for the use of car pools can help bring these costs under control. Use the cars, if the need arises, as situations cannot be compromised. Make an attempt at saving some gas by giving the cars a rest. You will be well on your way to get your budget down to the bare essentials. This will be of help to keep control over your budget. Living a debt free life in the future is what you can look forward to.

It will save you money

Making a budget is essential for your financial well-being. Once you have a sound plan in place, the worst recession won’t be able to topple you. But beware, purveyors of payday loans – if you aren’t careful, you can fall prey to one of the top 10 budget mistakes.

Having two household incomes – because you need them

If there is a second income in your household, it’s nice to be able to use that one for savings. That said, too many people have a second income to overextend their credit, especially when buying more home than they need. What if one income dries up? Live within the means of only one income and you will be more economical, and safer.

Not putting money away

Savings accounts, college funds or even rainy day funds. Whatever you choose to use it for, you need to set small portion of each paycheck aside. It pays to be prepared!

Overspending

Will that hole in your soul really be filled with a new television? If your old one works just fine, seriously consider whether you need a replacement. Impulse buys can be lethal, so make sure your budget is about what you really need every month. Sure, there should be some money earmarked for entertainment, but you must be disciplined enough to stay within the boundaries. When you do shop, try to look for sales and special deals.

Not recording expenses

When your budget is young, this is essential. Record purchases in the register of your checkbook, Smartphone, or a notebook, and create visual proof you’re following your budget. Eventually you will get the hang of it and won’t need to record things right away, but if you start to notice trouble, don’t be afraid to go back to recording it all.

Going credit crazy

This is very symptomatic of overspending. If you don’t have the money for something, don’t buy it. Using credit makes it too easy to overspend, and long-term revolving interest is very expensive. If you have to use credit, try to pay it off as quickly as possible and not carry a balance.

Being too charitable

This one might sound odd, but it’s obvious, isn’t it? There’s nothing wrong with generosity, but your own bottom line comes first.

Going overboard with birthday parties

Parents of young children may know about this one. I’m not talking about how much to spend on junior’s gift, but on the party guests. Giving goodie bags is a common practice for kids, but is it really necessary? Cake, ice cream and games should be enough.

Too many bills

This is why it’s useful not to go crazy with credit cards. Sure, housing and utility bills are generally unavoidable, but do you need eight or nine credit cards, too? A too many bills can lead to errors and omissions, not to mention more money you’re paying out.

Being afraid to ask for a raise

If you are valuable to your employer, make sure they know. If you don’t feel your pay level is consistent with others in your field, talk to your boss about it. If you are indeed valuable, a reasonable employer will at least consider it. If your employer won’t, consider improving your skill set and education to get a better job.

Not creating a budget

A person without a plan is a person who will soon be parted from their money. Payday loans can help, but budgeting is the best way to handle your finances over time.

A Word about Personal Finance Education

Poor Debt Management Can Affect Generations

A lot of people that struggle with their personal finances, like debt and credit issues, run into trouble because they’ve never learned about good budgeting. They likely have relatives that have the same issues. They likely don’t discriminate between needs and wants, and altered expenditures accordingly. Left unchecked, such behavior has caused individuals to fall deeply into debt. Just as in situations of physical abuse and substance abuse, the dysfunctional handling of debt and credit is often passed down to future generations. Poor financial decision making, however, is much easier to rectify than the aforementioned dysfunctions.

You Have Control of Your Own Financial Future

In looking at personal finance, debt and credit, it is important to understand that an individual has ultimate control over their destiny in any of these arenas. While many feel as though their spending is out of control, the exact opposite is true. You can regain control over your spending, and you may need help to do so. Simply, a person must recognize that they have a problem, that this problem is a threat to their future and that correcting the problem is fully within their control.

Debt Education is the Answer

Once a problem is realized, a person can then begin to take steps to repair their personal finance debt by becoming educated on financial topics. We live in an information age, and there is unprecedented access to information on how to fix your finances. From budget tools and software, classes in your area, even books and articles written by experts, plenty of resources are available, many for free. Keeping this in mind, a great place to start one’s financial education is with the basics of understanding how to create a personal finance debt budget and to understand how credit works. This can be learned by combing the Internet and reading various articles written on the subject or books can be checked out from the library to gain a basic understanding.

Low-Cost Debt Counseling is Also Available

Also, several non-profit organizations offer low-cost debt counseling services. Contacting one’s local Chamber of Commerce or related public agency can help locate such services. In doing so, a debt counselor can help with creating a budget, consolidating outstanding bills and offer further resources helpful to one who is determined to regain control over their personal finance debt.

No More Excuses

No matter how things went wrong with your finances, credit or debt, there’s no excuse for keeping it up. Nor is there any reason for such economic woes to be passed on to future generations. A person really looking to get in the driver’s seat with their personal finance, correct bad habits, and start reducing stress as a result, there are plenty of resources that can help them get started.

More people are starting to consider the merits on buying used cars. New cars depreciate so quickly that a used car can make more financial sense. Making the decision to buy a used car instead of something new can save you quite a bit of money. The average car loses 60% of its value in the first five years. Depending on how a car was maintained it could have many good years left after four or five years. Keep reading and you will find some sound and proven tips for buying a used car.

#1 Start with some looking around shopping and avoid any hasty decisions. Visit several car dealers and test drive various cars. Your objective as the car buyer is to compare several different vehicles and get an idea of what is available. This first step is strictly to gather information on possible choices and prices. Then go home and get on your computer and search for information on your choices of used cars. Compare safety ratings, options, selection, reliability, miles and pricing. Now narrow down your choices based on the information you have gathered.

#2 Determine how much you can afford or want to spend on your car. Before you go the car dealer you need to decide if you are going to finance or write a check for your purchase. If you are planning to finance your used car purchase you should talk to your bank or credit union first. Car dealers and salesman have a way of talking you into spending more than you planned.

#3 Remember to inspect the vehicle before making a decision when get to the car dealer. Use a car buying checklist for the things that you need to check when buying a used car. You will want to check the engine, the body, vehicle history and the transmission. Be sure you take the car in question for a good test drive because you may find problems. Drive the car at various speeds and make sure you are comfortable driving the car.

#4 Plan your car buying steps and follow your plan. In the earlier steps you decided what was right for you both financially and car wise. Stick to your predetermined price and do not allow yourself to be swayed by the car salesman. Remember the car salesman’s job is to sell you a car by whatever means possible. Follow your plan and stay within the guidelines that you have set before you go to the car dealer.

#5 Do not purchase the used car unless you are clear on all the details. Set aside any emotion and make your decision by thinking logically. Because the car buying experience can be overwhelming for some they sometimes make an emotional decision. If you are not completely sure about the car or the deal go home and think it over. You need to be sure before you spend such a large amount of money. There is no return policy for cars, once you buy the car and drive it home you are the owner.

Buying a good used car can save a lot of money, but buy a bad used car and it can haunt you for a long time. Everyone that buys a used car has the same objective, getting a good deal. We all want to be sure we got the best price on a car. Even though it is a used car it is important that you spend your hard earned money responsibly. Ultimately you are the car buyer so you are in control.

Where To Begin

The first thing to do is get a piece of paper or program on the computer such as Microsoft Office. Your money needs to be split into different categories that will show where the money is being spent. None of the sections should be labeled miscellaneous. One of the categories should have rent, house payments, or another living expense. Electricity, water, cable, etc should all be put into one utilities category. Each child should have a category. You should split up food into groceries and restaurants. You and your spouse will need two different categories if you can afford them. There should be a category for car expenses and one for personal items. These should show you where your money is going every month.

The Next Step

Make sure you know what amount is to be put toward bills. These would include things such as rent or phone bills. Make sure they are at unchangeable rates in order to keep your budget intact. This will help you to see what money goes to which things. You should then place the amount you normally would spend in a month into each category. You should figure out what you spend on things by living for a month and recording what you spend money on. It may shock you how much money is being spent in different areas.

Last Thing on the List

The last step is making sure your budget balances out compared to the your income. This means your personal fund may need to be subtracted from. If there happens to be extra money at the end of the month, that is a great thing; the money should be put into savings for future emergencies. It is important that you stick to the budget. The budget may show you that you can’t go out to eat anymore, and you must then stop going out. In the end it will be worth all the money you saved by not spending money on everything you want.

My Short Story

In college many people struggle. It seemed impossible to be able to afford to pay for anything. I had to figure out how to pay all of my insurance and monthly bills which I managed. I was concerned that I wouldn’t be able to afford all of that as well as food and personal expenses. To pay for everything I had to put as little money as possible into each category. My family needed a new program that I found and used. The program worked miracles in my lives. I learned how to stretch my money to pay for all of my expenses. My budget is still being done with this program.

I confess.  I have always been amazed by these women who save outrageous amounts of money on their grocery bills by using coupons.  Discount Coupons

As my mom subscribes on magazines like “Good Housekeeping” and “Ladies Home Journal”, there would be another article about a woman who performed magic while shopping using discount coupons to come out.  I can clearly recall the pictures of that particular article.  A woman, with her smile stretching wide from one ear to the other, was pushing one brimming grocery cart.  Her husband stood between two more carts, pushing one while pulling the front of the other.  She beamed as she held up a very long receipt, representing everything she had just purchased – all three full carts – for just $20. 

Mom became inspired, but it would go in phases.  Then she would cut almost every coupon from the Sunday newspaper every week.  But, most of the time, she would clip a coupon here and there, and use them if she happened to remember.  Grocery Coupons

Several months ago, I saw someone on the “Oprah” show, talking about how easy it is to save money by shopping with coupons.  Although I must admit, I was not fascinated.  What I meant was shopping with coupons must take a lot of time out of each day,right?  There needs to be time to find them, cut them out, sort them, put them in some sort of filing system, and then retrieve them when it’s time to go shopping. 

Now that I’m grown and raising my own family, I thought I would give it a try.  However, the whole process really eats a lot time. 

But then when I was about to give up, I found this web site that would ease my work real good.  SaveGroceryCoupons.com switched on the convenient work for me.  This web site has frequent updates regarding name brand coupons and free trials.  It is a lot easier to find coupons this way compared to flipping through the ads in the Sunday newspaper each week. 

I just took advantage of a $4.00 rebate on the “Monsters vs. Aliens” DVD just for buying two family-sized boxes of Hostess baked goods, which will make a great Christmas present for my kids.  Coupons

Six months ago, my employer started to lay off people.  I was in that first batch to be let go, without any regard for the years of service I had put in.  As of this date I haven’t found a new job yet.  The unemployment check I receive each week is not enough to keep my family’s life  comfortable Discount Coupons

I couldn’t afford to lose some luxuries like the telephone and the internet service.  A couple of times a week I go to the public library so I can check my email.  I also make revisions to my resume while I’m there, based on help wanted ads that I’ve seen.  While I’m printing my resume, I print my latest coupons from the web site that has been such a big help in feeding my family over these last few months – SaveGroceryCoupons. com. 

When I stopped by the unemployment office one day, I overheard two women talking about SaveGroceryCoupons.com.  What’s funny is that they were not unemployed.  They work there with nice clothes and all but they appeared worried about their finances and providing for their families – the same predicament as I was.    (  I thought that recession has affected everyone even the employed.  Grocery Coupons

I know all about coupons but I’ve always regarded it as a waste of time to cut them out from the newspapers.  Plus I didn’t have the extra money to buy the newspaper to get the ads and coupons each week.  But I knew there were computer stations at the library near my house, so when I stopped by the next day to check my email, I typed the web site into the computer and took my first look. 

The library doesn’t allow prolong use of the computres so I don’t have much time to browse unimportant sites when I’m surfing.  I appreciate SaveGroceryCoupons.com’s website a lot.  The site is user friendly and easy to navigate.  My favorite section of the site is where you click on “Featured Coupons” and it shows you your options. 

The coupons on SaveGroceryCoupons. com are for name brand products, which is so important to me.  I have tried groceries from the deep discount stores, where you put a quarter in to use a cart and have to buy your grocery bags.  Those groceries with the funny brand names just aren’t the same and I won’t compromise quality for my family.  Coupons

Debt management and getting started

Getting in to debt can be easy. No matter where the debt comes from – student loans, personal loans, credit cards or a mortgage, debt can pile up quickly. Managing your money is the first step in managing your debt and paying off what you owe. It is easier to accomplish large tasks such as this when you break it into small steps. Get started managing your debt today with these seven simple suggestions.

1- Understand your income

First, sit down and determine exactly how much money you will have coming in over the next week, month and year. Use commonsense about your income, especially if it can be variable. If you aren’t sure and need to use a ballpark figure, use a low number to give yourself some extra room. Be realistic about the income you can expect.

2-Understand your expenses

There are two forms of expenses – fixed and flexible. When an expense is reoccurring, consider it a fixed expense. Vehicle insurance and mortgage payments are both fixed expenses. Non-reoccurring expenses that do not have a fixed cost are considered flexible expenses. One-time purchases, such as clothing, can be considered a flexible expense. Record your fixed expenses and make your best estimate of flexible expenses.

3-Organize your budget

Plan your budget once you have a good understanding of your income and expenses. Ascertain the amount from each paycheck you will allocate towards each bill. Sketch out how much cash you can put towards paying off your debt. Make sure you leave some money for savings, even if it is a small amount.

4- Prioritize your debt

There are many different types of debt. Differing types of debt carry different interest rates. Taking on debt allows you to buy money when you need or want it, and interest is what you pay for that cash. Work out a way to pay off the highest-interest debt first. Putting an end to your highest-interest debt first saves you money.

5- Create a savings account

It is important to settle your debt. Creating a savings account is equally important. Create a reserve of cash that is enough to pay between two and six months worth of bills. You can know that you will be more able to handle unexpected expenses when you have a cash reserve.

6- Recognize your rights

When they are trying to collect a debt, credit collection agencies can be aggressive. It is important to know that even when you are in debt you have rights, so educate yourself. Begin informing yourself by checking out the FTC and Fair Debt Collection Practices Act. Even when you have debt, you are protected with rights. Debt collectors are not allowed to bully or intimidate you.

7- Enjoy positive habits

Once you have gotten into the habit of keeping track of your money, keep doing it. When you stick to your plan, it is possible to pay off debt. Keep up the habit – slow and steady is the best formula to follow.

It’s difficult to get rich if you’re working. Your time is consumed slaving for someone else and that means you have no time to create your own fortune.If you’re laid off, you have an advantage.  First, you have some time to think.  You have time to plan.Moreover, you have time to digest that the reason you’re laid off is that you’ve been barking up the wrong tree and what you’ve been doing the last ten years will never get you rich.If you’ve been fired as an administrative assistant, the dumbest thing you can do is pursue jobs as an administrative assistant.  Why apply for a job that got you laid off in the first place and had no chance of having you get rich?

Realize that the reason you don’t have a job is that people don’t need what you offer!  I don’t say this to make you feel bad, I say this to tell you that it’s time you offered what people want.  I see lots of hard luck stories on TV and in the newspaper.People out of work because no one needs what they offer and these people don’t offer what others will pay for.  Would now be a good idea to start offering what people want so that you can always make money and get paid and get on the road to get rich?

In a minute, I will explain what others are always willing to have.But to begin with, you need to know that you can learn a new skill.  You do not learn new skills by going to school.I see thousands of unemployed people going to school to learn a new skill—a new skill that no one needs in a weak economy!The skills that have true worth are not offered in colleges or vocational schools.All of these classes have benefit ONLY if a business will hire you. It’s much better if you don’t need anyone to hire you.  It’s much better if you know how to get rich on your own or if you have a skill that people will ALWAYS hire no matter what the economy.
When I go to my job, I see this guy pushing a trash can on wheels and in the garbage can are all the tools to wash windows. If you put this guy in a suit, he could easily be a corporate vice president and I would not be surprised if he lost his job at such a position.  But does he stupidly apply for more jobs as a corporate vice president so that the same thing would happen to him again, so that he could get laid off again and repeat the cycle of being at the affect of the economy or another person’s business?  You can’t get rich that way and this guy knows it.  Anyway, this guy goes from store to store downtown, and offers the business owner to wash windows.  I am certain that he earns $200+ per day as there are thousands of stores in the downtown and if he charges a small fee (e (e.g. $15 to $25), he gets plenty of business. He may not realize it but at least he is on the path to get rich.

He won’t get rich cleaning windows but let’s see what can occur.He asks each business owner if they want to have him come back and wash the windows in 2 weeks.  Enough store owners say yes.So now, he hires an unemployed guy for $10 an hour and has him wash the windows for the retail stores that want their windows to be cleaned every 2 weeks.Our entrepreneur continues to visit new stores and get more new accounts and in a short while, has four others working for him and is making $100,000 a year and will never, ever be at the mercy of anyone.He will never be laid off. And he can grow his business as large as he wants because he can go to the next town and replicate this success. If at some time in the future there is no desire for window cleaning, then he will clean toilets or clean homes or paint or do whatever it is that others desire.  Does that make a lot more sense—to offer people what they want rather than to keep sending out your resume offering businesses what they DON’T want?Start thinking of yourself not as an administrative assistant or a loan processor or an elementary school teacher or whatever it is you got laid off from, but as a provider of things and services that people want. Let me tell you what people want.

If you happen to have any skill at fixing things, great.  People always need stuff fixed in their house or business and everyone they call is unreliable. You could be the first reliable fix-it person.You would quickly get called over and over.The last worker I hired to repair stuff in my office showed up late, left with tasks incomplete and was generally inefficient.Will I telephone him in the future?  No.  Will I have a need to have things fixed?  Yes.

Are you a people person?  Then go take the Sandler Training and learn how to sell.  If you can sell you will always have work and can easily get rich.You can walk into any business, even in this poor economy and tell the business owner you will sell their products and services and be paid commission only.Plenty of business owners will retain you immediately.  If you can REALLY sell, a skill that even most sales people don’t have, you will have money in your pocket every day.Want to make more?  Just sell items that are more expensive and earn larger commission checks.
I am writing this on December 23.  In the next 2 days, lots of people will be driving to their relative’s house for the holidays.  If you purchase $100 of flowers down at the flower mart in the morning and stand at a busy intersection, you could easily sell those flowers for $500.  People will see you and think “we should bring some flowers to Aunt Martha.”  Just look around and ask yourself “what do people want?” The more answers you have for that question, the more opportunities to get rich and you can leave your old life of unemployment behind.
If you liked this article and are ready for the next step, read Five Ways to Get Rich.

Cash only money management

A recent CNN Money article highlighted people from all over the USA who have switched to cash only transactions to better manage finances. William Hazelgrove of St. Charles, Ill., is tired of mortgage loans, auto loans, unsecured loans and debt. He’s not alone in his sentiment toward credit and debt, but unlike other consumers, he is doing something about it. Hazelgrove had previously dealt with credit like a lot of people had. When he received bills, he’d pay them with his credit card. It wasn’t until his credit company hiked the interest rate due to the recession that he realized the problem. “I realized if I ever wanted to live within my means, I would have to switch to using cash only.”
Hazelgrove took charge of his finances, and steadily paid off debt and increased savings. He took on a second job and channeled the money directly to both. His complete solution included:

• Keeping a debit card balance above $100
• Liquid savings of $5,000 for emergencies
• Using Quicken to keep track of every expense

One of the main commitments he had to subscribe to was not spending when cash was low. He stated, “It was hard, especially towards the end of the month, but I had to forego credit card spending. If I couldn’t afford it, then it had to wait.” He admitted it was hard, but he was able to pursue and achieve his goals. Living without using a lot of credit isn’t exactly a bad idea.

Statistics on credit

When it comes to credit, almost everyone has it. A recent study by Hoffman & Brinker revealed that Americans totaled up to $ 917 billion in credit debt by September 2009. Just about 70 percent of that credit is currently past due.

It’s no secret that consumers over-used their credit, and the harsh reality is that lenders have changed their rules in terms of lending and limits. Without an action plan, many Americans will find themselves at a difficult juncture in their finances. Mortgage loans, car loans and unsecured loans are no longer given out to just any applicant. Prior to the recession lending laws were lax. It was easy to get funding and almost every credit-scored applicant could find some lender to extend money. Granted, the money most likely would come with a hefty interest rate, but for most consumers that was a price they were willing to pay.

Today’s world of cash management

The lending crash had the biggest effect on people going cash-only. Due to the number of defaulting borrowers, credit card companies had to take drastic action to mitigate their losses. They raised interest rates to unmanageable levels and cut limits. Another person, Daphne Harringe of Cincinnati, OH, said, “We always used credit to manage our monthly bills. Always. Then suddenly our interest rate shot up to 27 percent after one delinquency. It was difficult to manage, but we realized that we had to switch to cash if we were going to save our future.”

More and more consumers are heading towards a cash-based money management system. Particularly because of the way credit lenders took the recession, borrowers saw how unreliable credit can be at times. More consumers are moving away from funding methods like credit cards, mortgage loans, and unsecured loans. They are opting for cash as they forge ahead and create their financial futures.

Buying gifts for loved ones can often be a bit of a drain on the finances. When there are many more people to buy for, like at Christmas for example, this gift-money balance is made even harder. Add to this the fact that many people are short of cash due to the recession, and you can soon have a bit of a nightmare trying to get Christmas presents for everyone without breaking the bank. Don’t fear though, here are 3 great tips for making your xmas a frugal one.

DIY gifts. Many people are put off making their own gifts as they think it will take too much time and look a bit rubbish. However, the more you make gifts, the easier it gets and the better the results. Try to tackle something easy at first, such as making candy or cakes. When you think you have got your head around these, you can tackle something a little more advanced such as personalised ornament making or even clothing

Shop around. Finding that best price for a certain item has never been so easy. The technological revolution has meant that you can compare prices instantly, whereas before you used to have to brave the Christmas high streets for hours to do the same. There are lots of price comparison sites around where you search for individual products and find the sites that offer the best prices on gifts for men and gifts for her.

Sales. You don’t always have to get your gifts before Christmas. These days it is more acceptable to wait until the January sales to buy your presents, and more families are doing this every year. It often makes perfect sense in fact as retailers often have 50%+ sales in the new years months. However, some retails are now offering sale prices on gifts for her and gifts for him even in December.

Low interest rates mean low rates of return

The financial collapse that began in 2008 stimulated Americans to begin saving more, with national saving rates going up significantly over the last year. However, this increase in savings also coincided with a dramatic drop in interest rates, meaning that most interest-bearing savings instruments are now earning minimal returns. The low rates of interest from most traditional savings accounts have led many people to ask where they should put their savings in order to get a decent return and what sort of savings strategy they should adopt.

Forget about the rate

Basically all of the primary savings instruments – bank savings accounts, certificates of deposit, money market funds, and so on – are offering minimum interest rates for the time being, making any choice about as good as the other. Instead of focusing on current interest rates, consider the safety of your savings first and foremost. That is, deposit your money in a FDIC-insured account, regardless of the current interest rate. Therefore, you won’t lose anything beyond devaluation from inflation.

Interest rates are likely to increase

Despite the effect it may have on efforts to mitigate the recession, the fact of the matter is that the Federal Reserve is going to have to increase interest rates at some point to offset the decline of the dollar and to encourage increased foreign investment. A lot of the world is in recovery, and investment opportunities abroad are tempting investors away from opportunities in the United States. In order to remain competitive and balance out the effects of declining dollar value, the Federal Reserve has little choice in the matter.

What an interest rate hike will mean

For people in debt, an increase in the interest rate will have a detrimental effect as the interest levied on the debt will also go up; however, for savers the current low rates of return should also rise. Once interest rates begin to increase, it will be prudent for savers to shop around for better deals. For now, avoid putting savings in any account that will limit your access. If the interest rate goes up over the next few months, then there will be much better opportunities than anything available now.

The continuing credit crunch

Although the worst effects of the credit crunch seem to be over, the banks are still wary of lending to anyone without a good credit score and sound financial situation. This mean not only that are many banks are being cautious about lending to private customers, but that they are also being careful about lending to each other. Eventually, many banks, especially local banks with sizable commercial real estate holdings, will be working hard to attract cash investors. Looking to put savings into these banks might be worth the effort.

Basic advice for right now

Right now you are not likely to find any secure savings options that are paying decent interest, but this is bound to change in the foreseeable future. Therefore, the best idea is to keep your savings liquid and do not lock them into anything. Once interest rates go up, many more opportunities will present themselves and at that point it would be worth the effort to shop around for the best rates you can find. Furthermore, since interest rates are bound to go up, variable debts will go up as well, meaning you might want to use savings to pay it down.

My friends and family often joke and describe me as the coupon clipping queen. We subscribe to delivery of the Sunday newspaper only, just so I can get my coupons. You will know where to find me every Sunday afternoon: in the living room, hunched over the coffee table, holding scissors in one hand and the coupon advertisements in the other. After I’m done clipping my coupons, I place them in a shoebox I have designated to hold them. I admit that it can be difficult, but I do try to keep my coupons organized in that shoebox. Coupon Codes

My sister was literally breathless with excitement when she called me one weekend. She had located a website online that she thought was perfect; it was called Save Grocery Coupons. She was convinced that the website offered me handy tools I needed to become more organized, and she also thought it would give me more coupons than ever before. After she made me commit to visiting the website, my sister finally let me off the phone. Grocery Coupons

I did as I promised, and I went online and visited the Save Grocery Coupons website. I thought it was absolutely amazing. I knew my sister was right; I had completely missed out on this great online coupons resource. Just as she had described, the website offered several unique tools, along with a ton of discount coupons, grocery coupons, food coupons, and name brand coupons. I felt that I could now become an even better bargain hunter than before, and I became incredibly excited.

On the Save Grocery Coupons site, you can find a useful grocery coupons guide with details about all the particular deals available right now. By reading through the guide, I was able to quickly find the coupons that interested me the most. However, the site’s best tool was their coupon organizer. I wouldn’t have to drive around with my coupon shoebox in my front seat any longer. Now I could appear halfway presentable because I had a way to keep my coupons organized. I knew that I could take advantage of  more discounts than before because my coupons were organized, instead of trying to juggle a handful of coupon clippings.

The Save Grocery Coupons site has specialty coupon codes, and as a result, their discount coupons can be used at a number of different retailers – not just your local grocery store. I saw that the site offered coupons for my favorite restaurant, my local pharmacy, and the nearby auto repair shop. My Sunday newspaper didn’t compare to the website! My eyes were gleaming by the time I was done reading through the Save Grocery Coupons website. I was excited about all the new opportunities that were available for me to save money. Coupons

The pension planning age change – Ignore it and you could lose out!

What’s changing?
From 6 April 2010 the minimum age that pension benefits can be taken rises from 50 to 55.

For many of people this change could well have a significant impact on their retirement plans as they may not be able to accesstheir pension benefits when they want. And many of these don’t even realise this fact. Plus, there is no changeover period, so this seemingly small change could have important consequences for your retirement plans.

What does this mean for you and your family

For clients between the ages of 49 and 54 this could make a huge difference. You need to act before this date otherwise access to your pension benefits will be restricted. 49-54 year olds need to act very soon.

People younger than 49 years old need to consider reviewing their circumstances as they could still be affected.

Bet you didnt know you can switch your pensions much like you can switch your car insurance?

Now you’ve got your pension in place, you keep the same one until you want to retire. Right?

Perhaps. But have you ever thought about switching your pension planning?

Sticking with the same pension product or pension planning until you retire might not be the best option for everyone. If you have an outdated pension plan, you may benefit from moving to a modern flexible pension, with lower charges, more choice in how you invest your savings and which can be monitored online.

More and more people are happy to look around for the best deals and switch their credit cards and mortgages to save money, but when it comes to switching their pension to get the best, very few people though have done so. Are you one of those people?

Now you’ve got your pension in place, you keep the same one until you want to retire. Right?Okay, you may think it’s a bit of a hassle changing financial products, and sometimes it seems easier to leave things as they are. But you could be missing out if you choose to stay in your pension plan.

If you have a number of different pensions, perhaps relating to preivious employment with different companies, it can often be beneficial to consolidate these in a single pension plan. This makes it easier for you to put a value on your total pension savings and may also allow you to gain from lower charges and an overall investment strategy tailored to your needs.

Of course the decision to switch pensions requires consideration and it may not be in your interest to switch, therefore it is important that you receive advice from a professional adviser before deciding to move your pension.

Andrew Histon write lots of articles for the web on many subjects Pension Planning UK and other subjects. When not on the web here is in the garage playing with his classic mini or lambretta.