Financial Know How for Recent College Grads

There are approximately 1,750,000 college graduates every year. According to degreecentral.com, the number of college student bankruptcies filed each year is 9,300 and the average college student’s debt after graduating is $23,700.

According to the Institute for Financial Literacy’s 2010 Annual Consumer Bankruptcy Demographics Report, the percentage of college graduates filing for personal bankruptcy increased 20% during the last 5 years. A study by Twentysomething Inc. reported 85% of the graduating class in 2011 would be forced to move back home. The unemployment rate for people with a recent high school diploma is 22.9% and 31.5% among recent high school dropouts.

Many college graduates are stressed due to difficulty paying back debt, finding a job or finding a full-time job. The longer it takes to find a job the longer it takes to pay back any debt owed. Your potential salary earnings are directly proportional to your ability to pay back college debt and live a comfortable lifestyle. Here are some financial tips for recent college graduates to improve your financial outlook.

Housing
1. Stay at home for at least a year after graduation. If you have to live on your own buy efficiency, studio apartment or loft, rent a room or get a roommate. Unfortunately you have no control over whether your roommate will pay their rent or pay it on time.
2. Your housing costs should be no more than 35% of your total net income (after taxes).

Auto
1. Skip buying car your first year of employment. Catch public transportation; borrow your parents’ car or a friend’s car when needed. If you must buy a car buy a used car.

Paying Down Student Loans
1. Use caution with consolidation. Consolidating student loans combines your loans into one payment but may or may not provide you with a lower interest rate. You may not be eligible for various student loan forgiveness programs if you consolidate.
2. Your loan accrues the greatest interest in the first 2-3 years of the loan so pay more than the monthly payment.

Financial Planning
1. Start with your company's 401K. Contribute as much as you can to your retirement account. You will need at least 70-80% of your income during retirement and will need a minimum of $1,000,000 to retire.
2. Use a broker or financial advisor to help you setup your retirement account.
3. Buy health, life, disability insurance.
4. Create a will.

Spending/Budgeting
1. Create a budget and make it flexible to accommodate for unexpected expenses and include savings goals. Include monthly expenses and debt plus your monthly income. Create an emergency fund that is enough to pay your monthly bills and expenses for at least 9 to 12 months.
2. Reduce your credit card debt. Pay more than the minimum monthly payment.
3. Reduce spending by 30-50% each month to help pay down debt.
4. Comparison Shop. Consider quality of the product, price, warranty, and compare with stores or websites.

Managing Credit Card Debt
1. Order a copy of your credit reports at annualcreditreport.com and fix any errors.
2. Get current on any delinquent accounts.
3. Don't spend money you don't have. Use your credit card for emergencies only.
4. Setup a payment plan with each of your creditors to pay off your debts.
5. Request a financial hardship if you cannot afford to send the minimum monthly payment.
6. Avoid filing for bankruptcy.
7. Setup a debt payoff plan to prioritize your bills. Start by paying off the smallest bills first, then use the money paid towards a previous bill and apply it to the next bill and continue this process until all your debts are paid.
8. Pay more than minimum monthly payment. Try to send extra towards your balance each month.

How to Save Money During Prom Season

Prom season is here. Many parents take their children shopping for the prom and are shocked at the price tags on prom clothes. Clothes for the prom can range from $100-$1,000, not including the costs for accessories, shoes, transportation, dining, pictures, jewelry, hair, makeup and other costs.

1. Plan Ahead. Purchase all necessary items at least one month ahead of time. The ideal time would be to purchase items the day after Christmas or no later than February.
2. Be Different. Look for unique colors and styles. Shop online and on websites like Craigslist, eBay, or online consignment shops for unique pieces.
3. Create. Hire a seamstress to make a unique prom dress or tuxedo for half the price. Buy your own fabric to save even more money.
4. Comparison Shop. Use coupons or look for discounts and bargains on social media and online websites. Consider visiting thrift stores, consignment shops, outlet stores or bridal stores that to shop for a prom outfit.
5. Rent. If you can’t afford to buy a prom dress or tuxedo many stores offer rentals.
6. Ask for help. Ask friends or relatives if they have any items you can borrow such as jewelry, shoes, makeup, accessories or other items. Also ask for assistance getting ready on prom day.
7. Share. Share the costs of prom expenses such as car-pooling; renting a limo or use items from friends closets instead of buying a new item.
8. Flowers. Reserve your corsage and boutonniere at least 3 weeks ahead of time at your local florist.
9. Preparation. Go to a training school or have a friend assist with your hair or haircut, makeup, nails, etc. on the day of the prom.
10. Reuse. After the prom is over, consider letting someone else reuse your prom outfit, alter it for future use or sell it to a consignment shop.

Parents don’t stress your child out about the prom. Let them have the freedom to make decisions about their prom outfit. Don’t be too strict. Discuss with them your budget and ask them to contribute if the total cost exceeds your budget. Be supportive as much as possible of their decisions so they can enjoy the prom. Remind them to have fun and don’t let anyone ruin their prom experience.

Dating Tips For Men with Bad Credit

Credit affects many aspects of your life such as employment, interest rates and dating. If you have bad credit because you lost your job or home to foreclosure women will be more forgiving and understanding. However, some women may not be interested in dating a man who doesn't pay their bills or wants to wait 7 years for old debts to fall off their credit report instead of being responsible and paying the debt.

Many women are more concerned with the character of a man instead of his material possessions and it is very appealing for a woman to meet a man with an average or good credit score because it states a lot about his character: you are aware that credit affects several aspects of your life, you are accountable and responsible with your money and pay your bills on time, you may have made mistakes in the past but have learned from your mistakes, and you continually work to ensure that you maintain and/or improve your credit score.

Unfortunately men with bad credit are rated harder than women with bad credit. Some women don't date men with bad credit. If you have bad credit and are dating it is best to be upfront with women. Women want to be with a man who is responsible and accountable for his actions.

Women like a man who has a plan and knows how to solve problems and women examine how a man is solving his own problems. If a woman knows that you have bad credit and you are not doing anything to fix it you may not be considered for a possible date or a potential mate.

If you are dating and have bad credit it will force you to be accountable for your actions. Here are some tips to help you when dating:

1. Be honest about your situation, don’t lie or try to hide it.
2. Think of creative ways to increase your income since many employers are using credit as a means to hire candidates.
3. Purchase items with cash (but if you don't manage your money properly and overdraw your account it will lower your credit score).
4. Develop better money management skills to ensure that you live below your means.
5. Examine why you have and/or continue to have poor credit.
6. Be creative when dating because if you don't have a lot of cash or credit you won't be able to go to the usual places like dinner and movies, trips, etc.
7. Learn how to appreciate the simple things in life.


The bottom line is you have to find the right woman who is patient, understanding and willing to work with you doing this rough time.

Why Aren't We Mad About Gas Prices

In 2004, gas prices were $1.61, in 2006 $2.86, in 2007 $3.11, in 2008 gas prices reached $4.12. Gas prices have again increased to over $4.00 a gallon for regular gas. According to the US Energy Information Administration gas prices consists of 4 factors: crude oil 53%, federal and state taxes 22%, refining costs and profits 14%, and distribution and marketing 11%. When crude oil prices increase consumers see an at the gas pump.

U.S. oil production is the highest it has been in the past eight years. However, the U.S. has relied on the least amount of foreign oil in the last 16 years, but the media would have you believe otherwise. Gas prices do not increase or decrease based on who is elected President. Gas prices are affected by the declining value of the dollar overseas, the threats of war or fuel shortages, natural disasters and gas prices also increase due to demand. The wars in Libya, Nigeria, Afghanistan, Iraq, Hurricane Katrina and other natural disasters have also affected gas prices.

Oil production was increased worldwide. The value of the dollar continues decline. The media blames high gas prices on the greed of oil companies and lack of government programs and reform. However, the government cannot control supply and demand. There has been an increase in oil demand in India and China as well as Venezuela and the Middle East. Gas in Oslo, Norway is $9.33, in Rome, Italy it is $8.51.

Americans are partly to blame for the high gas prices. One reason demand in the U.S. remains high is due to consumers driving SUVs and large trucks. To permanently lower gas prices we must explore oil exploration and alternative oil sources. Brazil uses Ethanol and is no longer dependent on gas. Brazil is the largest exporter of ethanol. Ethanol produced from sugarcane is cheaper, provides energy that is renewable and has a lower carbon footprint. Bioethanol reduces air pollution and reduces global warming by reducing greenhouse gas emissions. Several studies have shown that sugarcane based ethanol reduces greenhouse gases by 86 - 90%.

Gas prices will continue to spike through the summer as many people drive to visit their favorite vacation spot because it some cases, driving costs less than flying a family of four. Other alternatives to high gas prices are using public transportation, walking, carpooling or telecommuting.

Do more than just complain. Complaining only has a short-term affect unless you take action. We can’t change the high gas prices if we continue to buy gas guzzlers. We can’t change gas prices if we drive one mile to go to the store instead of walking. We can’t improve the environment if we continue to drive and emit gas fumes into the air or delay getting oil changes every 3,000 miles. I used to fill up my gas tank with $12 now it takes $38.

Since this is an election year make you voice heard by asking for change. Don’t just say you don’t like the high gas prices, explain to politicians how it affects your life and provide possible suggestions for helping to lower gas prices. Here are 8 tips to save money on gas.

1. Drive the speed limit.
2. Buy a fuel-efficient car.
3. Drive with the windows down instead of using the air conditioner.
4. Combine nearby trips on the same day.
5. Buy gas early in the morning.
6. Drive 2-3 car lengths behind the car in front of you. This will require you to stop and accelerate less often.
7. Use cruise control when driving on the highway.
8. Keep tires properly inflated.

Use Financial Literacy Month to Jumpstart Your Finances

Today employees have a greater need to educate themselves about how to effectively manage their finances because many employers are eliminating retirement plans and offering 401K’s. In addition, financial products and services are more complex and perplexing. April is Financial Literacy Month which stresses the importance of financial literacy.

Without adequate knowledge about basic financial literacy concepts, consumers can make devastating mistakes that can take years to recover from. Regularly practicing good money management habits eliminate the needs for dependency on credit cards, payday loans or title loans and cash advances.

The financial stability of families is directly linked to economic growth in America. The economy is stronger when more Americans have jobs, increases in income and an accumulation of wealth.

Financially strong families tend to have better money management skills and are more willing to make major purchases that help advance our economy. Financially successful people save more and are more able to get approval for credit cards and loans.

The average American believes all they need to do is go to work everyday and pay their bills on time. However, being a responsible consumer requires much more. Consumers need to be able to make informed decisions about how to earn, spend and grow their money.

This is where the importance of financial literacy plays a key role. The lack of financial literacy education and effective money management skills result in mounds of debt, low credit scores, denial for approval of credit and loans, increased foreclosures and bankruptcies. These factors ultimately slow economic growth.

Financial literacy increases the awareness of the benefits and risks of consumer credit and the consequences of poor money management skills. Financial literacy benefits include: accumulating wealth, planning for retirement, planning for children’s college education, starting a business, ability to make large purchases, maintain good credit and achieve financial goals. Financially literate consumers help the banking industry by purchasing products and services which results in stable banks, better customer service, lower fees, and increases in money available for lending.

The primary benefit of financial literacy is providing an improved standard of living for students, individuals and families. Financial literacy helps individuals and families accumulate wealth and live a financially stable life. Families are also able to pass knowledge on to their children and future generations.

This month make at least one change to your spending habits to help pay down debt, create a savings account or start planning for your retirement. Make a promise to yourself and your family that starting in April you will do at least one of the following to improve your financial life.

1. Create a budget or spending plan and track spending daily, weekly or monthly.
2. Verify bank statements each month.
3. Pay bills on time or before the due date.
4. Get current on any late bills by negotiating with creditors or setup payment plans.
5. Don't buy something if you don't have the cash to pay for it.
6. Use credit cards for emergencies only.
7. Get overdraft protection to reduce bounced check fees.
8. Avoid filing for bankruptcy.
9. Order a copy of your credit report and dispute any errors,
10. Pay off at least one credit card this year.
11. Create an emergency fund to cover bills and monthly expenses for 9-12 months.
12. Reduce monthly spending by 30-50% by using coupons, buying items on sale, in bulk or shopping at discount, wholesale or outlet stores, etc.
13. Buy more of items you need instead of items you want.
14. Plan for your future by doing performing estate planning.

Fight High Gas Prices With a Gas Challenge

If you notice that every year during election season gas prices slowly start to increase and reach a peak in the summertime because many Americans travel during the summer. Gas prices start to decrease right before or right after November elections.

One reason for the high prices now is due to the conflict with Iran who has threatened to disrupt oil shipments due to the European Union sanctions because of Iran’s nuclear program which has caused the price of crude to drastically increase.

Another reason for the high gas prices is due to the decrease in the unemployment rate and improved housing market. Gas and oil prices have increased because the powers that be assume that since the economy is improving and people are spending more money they have more money to spend on gas and other items which is just speculation and a farce.

People are spending more money because products and services costs more than they did 1 or 2 years ago such as food, clothing, housing, college tuition and other items that are continuing to increase in price. High gas prices put more strain on Americans families and small business owner who are already struggling to make ends meet.

The European Union’s bailout adds to the worldwide demand for fuel. Alaskans are paying $4.40 per gallon, Chicago and Hawaii pay $4.50 per gallon and Tulsa and Wyoming pay $3.50 per gallon. To help ease the burden of high gas prices put yourself on a gas challenge by following these 14 tips:

1. Determine the number of miles it takes you to go everywhere you drive including infrequent trips or one-time trips even if it just down the street.
2. Calculate the number of miles per gallon your car gets
3. Calculate the cost of gas required each time you drive your car and calculate the total amount of gas needed for driving for a week including the weekends.
4. Compare the cost of taking public transportation each day versus driving each day to work and places you travel the most. Research community buses, carpool, and shared rides.
5. Compare the cost of walking a portion of the distance or walking the entire distance for a destination.
6. Map out the quickest routes when driving and alternate routes that take a little longer. Try to take the quickest routes more often when driving.
7. When driving combine trips in the same area on the same day, i.e. buy gas, go grocery shopping, cleaners, post office, convenience store in the same area to save money on gas.
8. Stop complaining about gas prices if you drive a gas guzzler and buy a more fuel efficient car.
9. Do more than just complain, take action. Contact your Congressman, local city council and other government officials, local newspapers, local radio and news stations and demand oil companies’ lower gas prices.
10. Buy a hybrid car or fuel efficient car.
11. Take public transportation.
12. Walk more often, i.e. walk to work and when shopping.
13. Buy regular gas unless otherwise noted in the manufacturers guide.
14. Compare the time it takes to drive, use public transportation, ride a bike or walk. Use all the data to determine which is most important you: convenience, cost, time, etc. and select the best transportation method.

FICO Score versus Vantage Score

Your credit score it is one of the most critical factors in your financial life. It determines if you will be approved for a loan or line of credit. A credit score is a number developed and calculated by the Fair Isaac Corporation (FICO) that lenders use to rate potential customers in determining the likelihood that a customer will pay their bills on time. Your credit score is used for employment, approval for loans and credit, insurance rates, opening bank accounts and affects critical aspects of your life.

The FICO credit score is determined by using 5 main criteria as defined by MyFico.com: your payment history which accounts for 35% of your credit score, the total amounts owed which accounts for 30% of your credit score, the length of your credit history which accounts for 15% of your credit score, new credit which accounts for 10% of your credit score, and the types of credit used which accounts for 10% of your credit score.

Payment history shows the history of how you paid your bills either on time or late. Amounts owed show the total amount of debt you owe. If your balance is near the credit limit this may lower your credit score. The length of history indicates how long you have had credit. If your credit history is 2 years or less this could lower your credit score. New credit indicates how many times you have applied for new credit.

If you open too many new accounts in a short period of time this may lower your credit score. The types of credit used indicate the types of accounts you have such as revolving or installment accounts. Revolving accounts are usually credit cards and installment accounts are usually mortgage loans, auto loans, personal loans, etc.

The higher the credit score the lower the interest rate you will receive for a loan or line of credit. Having a good credit score can save you thousands of dollars in interest over the life of the loan.

Another credit score that is used is called the Vantage Score which ranges from 501 to 990 and correspond to letter grades with “A” credit ranging from 901–990 and “F” credit ranging from 501–600. The Vantage score is currently available to customers for a nominal fee and can be ordered by calling the three major credit reporting agencies, Experian, TransUnion and Equifax. The scale for the Vantage credit score is: 901-990 A score, 801-900 B score, 701-800 C score, 601-699 D score and 501-599 F score.

Benefits of FICO Scores
1. Starts credit history as soon as a person starts using credit
2. Over half your score consists of payment history and total amount owed
3. Used for approval of loans and credit cards
4. Helps those with established credit history
5. Helps those with at least 2 years of credit history
6. Helps those aged 30-65

Disadvantages of FICO Scores
1. Doesn’t offer credit grades to coincide with credit scores
2. Scores range from 300-850 – a span of 550 points
3. Credit scores may not be the same with each credit bureau
4. Doesn’t consider rental payment history

Benefits of using the Vantage Score
1. Provides consumers with little to no credit or bad credit with more accurate scores
2. Starts credit history as soon as a person starts using credit
3. Uses rental information
4. Helps young adults aged 18-25 and college students
5. Helps those who are recently divorced or widowed
6. Helps those with bad credit or who previously filed bankruptcy

Disadvantages of the Vantage Score
1. You score could decrease, if your FICO score was 720 your score may remain in the 700s using a Vantage score which would give a C grade.
2. Scores range from 501-990 – a span of 489 points.
3. Over half your score consists of payment history and recent credit so you are penalized heavily for having any new credit. The length of credit history weighs less. Available credit only consists of 1% of the credit grade so you can have a credit card maxed out or with high balances and still have a good credit grade.
4. Credit scores may not be the same with each credit bureau.

However, it is up to the lender or company to decide which score they want to use to consider approving you for a loan or credit card.

10 Ways to Reduce Your Cable Bill

One expense that people don’t seem to complain about anymore is paying for cable television service. Cable prices have increased over the years so why do we pay it without complaint.

Over 100 million people have cable or satellite service. The average cable bill is $75 a month. The average cable bill increases 5% every year. The average cost for cable service has tripled over the past ten years.

The top two cable providers are Comcast and Time Warner. There are different prices for internet and cable service. Comcast has promotions available on a quarterly basis that are not publicized.

According to the New York Times, cable subscribers on average pay approximately y $100 a year for sports programming and it doesn’t matter how many games you watch or if you don’t watch any at all. You pay for just having the channel. Most of the money is paid to the NFL. As costs increase for the NFL, those costs will be passed on to the cable companies and then passed on to customers.

As cable company fees increase, the increase is passed on to customers. However, many customers have found alternatives by renting movies, using rental services such as Netflix or Redbox or watching shows on the internet for free.

Cable companies are able to raise prices due to the lack of competition in some areas. The ability of cable companies to raise rates and increase revenues, even with rising programming costs stems from their market power. Cable companies would not be able to raise prices if they did not have monopoly power.

Some cable companies claim the increase in prices is due to system upgrades and better quality. I am still waiting for the better quality. I had better service when television was analog. If you are tired of paying high cable costs here are 10 tips to lower your cable bill:

1. Ask. Asking to reduce my bill worked. I was amazed at how easy it was to get my bill lowered. If you are unable to get it lowered, ask for the cancelation department.
2. Be pleasant. Be pleasant, don’t argue, don’t be rude or raise your voice.
3. Refer to the competition. Refer to specials and discounts offered by competitors.
4. State the facts. Don’t get emotional, just state the facts.
5. Do your research. Do research on discounts and promotions the company may be offering through advertisements or on their website.
6. Look for loopholes. Try negotiating a lower bill by talking to an online representative through chat.
7. Don’t make the first move. Let the company start negotiations and then decide it you will accept the offer or want to negotiate further.
8. Read your contract. Read your cable contract. You may have to give 30 days’ notice before canceling your service.
9. Cancel. If you watch television 10 hours or less a week you should consider canceling your cable service since you have found other ways to spend your time.
10. Write. Write your congressman and demand competition among cable companies in your area to reduce monopolies, lower cable prices and provide quality cable service.

8 Crucial Steps to Filing Your Taxes

Every year Americans have to file their taxes unless they don't earn enough income to qualify having taxes taken out of their income. There are heaps of free tools available to help you prepare your taxes and determine if you will get a refund or owe money.

Some of the most widely used tax preparation tools are Turbo Tax, Tax Cut and Tax Act and tax calculators available on top sites like Bankrate.com, MSN.com or CNN.com/money.

One of the reasons many Americans miss out on claiming deductions or end up owing taxes or is because their financial documents are not in order. Many throw away, misplace receipts or falsify documents because the original documents cannot be located.

Using tax preparation software has all the tax laws imbedded in the tool which makes it easier for you to see what deductions you are eligible to claim. Here are 7 crucial steps to help you get organized and file your taxes.

1. Gather. Gather all receipts, gather monthly, quarterly and yearly statements, medical bills, student loans, credit card statements, prescriptions, financial statements, etc. and place in one easy to find location.
2. Categorize. Categorize all receipts such as medical, loans, financial statements, purchases, business expenses, income, etc.
3. Plan ahead. Avoid waiting until the last minute. You can use an automated tool to track your spending and deductions or use a piece of paper, or Word or software such as Excel or Access to enter your data electronically.
4. Automate. Use a software package like Quicken or Quick Books to record all of your deductions. Use basic column headings: Item, Date Purchased or Sold, Cost, Quantity, Total Cost.
5. Deductions. Identify all items that can be used as itemized deductions and put them in one folder. Determine if the standard deduction for your tax bracket is greater than your itemized deductions. If not, calculate your itemized deductions.
6. Go Green. File your taxes electronically. You will receive your refund in approximately two weeks from the date of filing and you help save the environment.
7. Be Patient. Don't get a tax refund anticipation check or refund anticipation loan. You are charged a fee to get your refund faster than waiting the normal waiting period due to a high interest rate charged for the loan. Save yourself some money.
8. Free Filing. If you salary is less than $57,000 or less you can file your taxes electronically for free.

An Unconscious Expense That Can Be Costly

There are many expenses people have to pay but one expense that is frequently overlooked or not thought about is car repairs due to road conditions. In many states when it snows or rains the conditions of the roads get worse and it seems to take forever for them to be repaired. According to the Federal Highway Administration in 2010, 45% or 150,000 miles of the roads in the US were were not in good condition and 12% or 71,000 of the bridges were in poor condition.

Deficient road conditions cost U.S. drivers $67 billion a year in car repairs and operating costs or an average cost of $335 per driver. The federal gas tax has remained unchanged at 18.4 cents per gallon since 1993 and has not been adjusted for inflation. Revenue from the federal gas tax is used to pay for road repairs. Studies show the damage being done to roads from lack of maintenance is costing drivers more than actually paying a slightly higher tax for gas. The states with the worst road conditions are: Kentucky, Alabama, Pennsylvania, New Jersey, Hawaii, Arkansas, West Virginia, Oklahoma, North Carolina and Louisiana. Some cities with the worst roads are Houtson, Philadelphia, Atlanta, Detroit, Queens, and Washington DC.

According to the annual CarMD Car Health Index if you live in the West from Alaska to Wyoming you will pay more per year for car maintenance. The states with the highest car repair costs are: Alaska, Oregon, Colorado, California and Idaho. The states with the lowest car repair costs Mississippi, DC, Vermont, Indiana and Montana.

According to Consumer Report.org average car maintenance and repair costs are 4% of ownership costs over five years. According to a study by the Automotive Aftermarket Industry Association (AAIA) car repairs cost an average 34% more at car dealerships than at independent repair shops. Car repairs for parts and labor averaged 34.3% more at dealerships, foreign repairs averaged 36.8% more at dealerships and domestic repairs averaged 31.5% dealerships.

The cost to repair a car after hitting a pot hole, a bump, a water sewer cover, unlevel roads, debris, etc. can be as high as thousands of dollars. According to The Road Information Program the annual average repair cost per car due to potholes and bad pavement is estimated at $402. According to the Post-Journal wheel balancing: $10-$20 per wheel. Wheel replacement can range from $50-$500, suspension from range from $1230-$2,000, shock/strut replacement can range from $150 to $1,200 and a wheel alignment can range from $90 - $150 per wheel. The average cost to fix an axle is $350.

Hitting a pothole can result in suspension, wheel , undercarraige and tire damage. Check to see if pothole damage is covered under car insurance before paying out of pocket for the repairs because the deductible which in some cases may be less than the cost of the repair. Here are some tips for AA Insurance regarding potholes:

1. If you hit a pothole stop as soon as possible for a quick check of your car including tires and wheels.
2. If you hit a pothole, document where it is, size and depth if known and take a picture.
3. Report potholes to the county, local or state highway authority.
4. Listen for sounds of damage such as “clonking sounds from the steering and suspension, a slight pull to the left or right in the steering, the steering wheel not centring properly when the car is travelling in a straight line or braking feeling'uneven or the steering wheel or entire car vibrating.
5. If you hit a pothole take your car to a repair shop as soon as possible to verify if there is any damage.
6. Keep all receipts from damage repair to support a car insurance claim.
7. Stay alert for potholes or other road damage and conditions. Use extra caution during rain, snow and road construction. Debris in the roads such as gravel and stones on the road might indicate the presence of a pothole.

Warning: Paying Bills Online

Warning: If you pay your bills online with a debit or credit card the company can automatically setup the payment as a recurring payment even if you never setup it up yourself or you only made a one-time payment.

Before you do business with a company verify their processes and procedures for using a debit or credit card. This also occurs when paying a bill directly from your checking account, i.e. providing your checking account number. This recently happened to me. I closed my online accounts with those companies.

A Messy Purse Equals Messy Finances

Does it take you forever to find something in your purse? Does your shoulder ache from all the stuff you carry in your purse every day? Do you have to pull everything out of your purse to find something? If this sounds like you, you are not alone. I recently just organized my purse which reduces the time it takes for me to find something and I no longer have to pull everything out of my purse to find an item. It never occurred to me to organize my purse even though I organize everything else, my home, my car, my office, etc.

The way you organize your purse is an indication of how you manage your finances. If your purse is organized neatly it shows that you organize your money and your finances as well as your life.
If you keep all of your receipts in your book along with your checkbook but don’t balance your checkbook on a regular basis you risk the chance of having an overdrawn account.

If you keep everything in your purse including receipts from 2 years ago indicates that you are not organized with your money, your finances or your life. Carrying a designer purse may show that you value image and appearance but usually doesn’t provide a lot features to help you keep your purse organized.

If you never have cash or never have enough cash that is a red flag that you need to adjust your spending habits quickly to prevent a financial crisis such as filing for bankruptcy or foreclosure or getting a judgment or tax lien.

If you have purse money in your purse but never know how much or have your money balled up or crinkled up you probably don’t know how much you spend either. This is a warning that you need to create a budget. If you don’t manage the money you have now when you have the ability to earn more you will not be able to manage it which can result in financial problems. Here are 10 ways to organize your purse:

1. Sort your purse as you would sort your bills and financial paperwork
2. Leave unnecessary items out of your purse such as: mail, water bottles, receipts, multiple credit cards, shoes, hats, gloves, hair products, trash, snacks, umbrella, etc.
3. Keep smaller items in a separate bag that you can carry or leave in the trunk of your car.
4. If you have children keep their snacks, toys, etc. in a separate bag.
5. Clean and organize your purse at least once a week.
6. Leave your checkbook, credit cards and debit card at home unless you know you are going to use it. You can keep one credit in your wallet for emergencies.
7. Organization is a trait that carries over into all aspects of your life. If you have a messy purse you probably have a messy home or messy room in your home or a messy car or work area.
8. Keeping your purse organized is a tedious task but it can help you to organize other areas of your life such as: keeping your house clean, organizing your finances, organizing your time, etc.
9. If you can’t manage your purse you can’t manage your finances which make it difficult for you to achieve financial success.

Remember a messy purse equals messy finances so don’t be messy.

17 Ways to Save on Medical Expenses

Each year many Americans file for bankruptcy due to medical debt. Over 40 million Americans do not have health insurance coverage. Many people are uninsured due to the high costs of medical coverage. Many employers only pay a small portion of healthcare costs leaving the remaining expense for the employee.

When a patient has health insurance there is a set limit that hospitals, doctors and other medical professionals can charge for services. Without medical insurance, a patient can be charged whatever fee the doctor or hospital chooses t for services and in some cases may be charged multiple times for the same services. The continual rising high school of medical season is due to the lack of mandated regulations in the health care industry, industry fraud and billing errors.

The United States has the highest incidents of high blood pressure, diabetes, heart attacks, stroke, and cancer. If you do not have health insurance always request an itemized list of the services you received to ensure there are no errors. Here are 17 ways to save on medical expenses.

1. Do research. Verify the medical provider is licensed.
2. Verify the agreement. Verify the agreement you establish with the medical provider in writing and make sure you understand the terms of the agreement.
3. Barter Services. Barter medic al services and goods. ITEX Corp. has 24,000 members where patients can exchange medical good and services for barter dollars but is usually limited to dental or smaller doctor practices. Visit barternews.com site for listings by state.
4. Negotiate with the service provider (doctor or hospital) to get fees reduced or eliminated in exchange for paying the debt.
5. Go to free dental clinics or free medical clinics for free or reduced dental services.
6. Go to a training school for services: dental school, barber school, cosmetology school, etc.
7. Participate in discounted dental programs.
8. Use Flat Fee clinics or sliding fee scale clinics.
9. Use Free or Reduced Healthcare.
10. Receive a Medicare supplement.
11. Buy generic prescriptions and get them filled at discount stores such as Wal-Mart, Target or Walgreens.
12. Manage medical expenses in a Healthcare Savings Account and order your own medical services (blood work, urine sample, etc.). Order test directly from the lab instead of your doctor ordering it for you.
13. HSA for America has a contract with Direct Labs to offer low prices to the HSA for America readers. It is free to join and members can order x-rays, lab tests, MRIs or CT scans.
14. Setup your own Health Savings Account if you employer does not offer one.
15. Participate in clinical trials that provide medication or services for medical issues you are experiencing.
16. Order blood test online and get results in 48 hours.
17. Give back. Refer your medical provider to others on the network or by word of mouth to friends, relatives and co-workers, this can help you negotiate future services needed by the same medical provider.

5 Ways to Replace a Lost Card

One day you realize you lost your credit or debit card and you start to panic. You don’t know what to do. Luckily there are no strict requirements on getting an emergency replacement credit card. Simply call the credit card company and say your credit card was stolen or lost and they will send you a new one. The credit card company or bank immediately blocks the card from future use.

If the card was stolen you are not liable for any future charges provided you reported the loss or theft within 3 business days. The credit card company or bank will inform you that if you find your lost card cut it up and throw it away.

The average time to receive an emergency replacement credit card is 5-7 business days from the date you make the request. If you need money before your card arrives some companies provide you with an emergency cash advance and will work with you to arrange a convenient location to pickup the cash.

The average fee to replace a lost credit or debit card is $5 but not all banks charge a fee. Bank of America may charge a fee for ordering a replacement credit card. PNC charges $7.50 to replace a credit or debit card. Credit unions may charge a fee for a replacement credit card usually $5 to $10. Bank of America charges a fee for requesting a replacement debit card or requesting a rush order for a replacement card.

Here are 5 Ways to replace a lost credit card or debit card

1. Contact the bank or credit card company within 24 hours or as soon as you realize the card is lost. Some companies require you to follow up your emergency replacement card request with a confirmation letter.
2. Go to your local bank and request an emergency replacement debit card which may be quicker than calling the customer service department of the bank.
3. If your address is not updated you will not be unable to quickly receive a replacement card.
4. The credit card company or bank will tell you that if you lost your credit card and find it to cut the old card up and throw it away.
5. Submit a request online however it is probably quicker to make the request by phone.

Prevention

1. Use a virtual wallet or online banking to keep track of purchases with sites such as PlasticJungle.com.
2. Register your credit or debit card for added protection.
3. Store your credit or debit card in a secure location. Shred financial documents.
4. Reconcile financial statements daily or weekly.
5. Know the location of your credit or debit card at all times.
6. Keep your address up-to-date. If you card is lost the company needs to have a current address.
7. Avoid putting your credit or debit card in a loose location such as a coat pocket or outside pocket of a purse where it can easily fall out.
8. Keep a log of all of your credit and debit cards with the account number, toll free number and after hours. If you are traveling out of town carry a copy with you.

Emergency Card Replacement Telephone Numbers

1. Bank of America (800) 732-9194
2. Visa (800) 847-2911 (410) 581-9994
3. Citibank (800) 950-5114 (605) 335-2222
4. Wells Fargo (800) 642-4720
5. Chase (800) 432-3117
6. American Express (800) 964-8542
7. Capital One (800) 955-7070
8. Discover (800) 902-3100
9. MasterCard (800) 627-8372

The Importance of Insurance

According to the Cover the Insured website one of the highest age groups that are uninsured range from ages 21-44. Sixty-one point nine percent (61.9%) of full-time workers are uninsured.

If an unexpected event occurs that causes you to lose your job or become ill you could end up homeless. You should have some type of insurance no matter what your salary. Here are 3 benefits to having insurance:

1. Can be used to reimburse for a loss that occurs
2. Protects against harm to something or someone
3. Saves you money in the future

There are several types of insurance available: life, health, dental, home, auto, fire, flood, credit card insurance, disability (short term and long term), and many more. The basic types of insurance everyone should have are: health, life and disability. All three actually work together. Health insurance is needed if you develop a health condition or need to go to the emergency room.

Disability insurance is used if you have a short-term or long-term medical condition that prevents you from working and ensures that you still continue to receive a paycheck, usually at least 60% of your salary. Life insurance is used in the event a family member dies.

When buying insurance it is best to comparison shop. A website you can use to comparison shop for insurance is www.bankrate.com and www.ehealthinsurance.com. You can visit the Better Business Bureau's website at www.bbb.org to search for companies and view their reliability report. If your employer does not provide health insurance, life or disability insurance you can purchase insurance on your own. Go to ushealthcare.port5.com or ehealthinsurance.com to find information on affordable health insurance.

If you need health insurance for your children visit www.insurekidsnow.gov. For information on disability insurance visit www.about-disability-insurance.com or www.assurity.com. If you cannot afford to purchase insurance make sure you get enough rest, eat well and exercise. Try to get a part-time job to pay for insurance costs.

If you are able to purchase additional types of insurance such as home owner's insurance, auto or fire insurance, it is best to purchase bundled packages or similar insurance policies with the same company (such as insuring multiple cars with the same insurance company). Many companies give you a discount if you purchase multiple products but you have to ask for it. Purchasing bundled packages or multi-line policies can result in a savings of 1% to 20% depending on the company versus buying home owner's insurance with one company and auto insurance with another company.

How to Save Money During the Spring Season

Spring is a time for renewal, getting a fresh start and making changes. Spring is also a great time to catch bargains and save money. Retail stores begin to mark up their prices, gas prices start to increase and consumers start to venture outdoors more.

Food prices have also increased. Prices on corn, wheat, soybeans and sugar have increased 40% or more in the past few months. According to CNN food prices are 2.9% higher than they were a year ago. You can still go shopping but look for ways to save money while making your purchases. Here are 15 tips on how to save money during the spring season.

1. Shopping. If you must go shopping during the spring season wait until retail stores offer sales on off-season items. You can save up to 50% off the regular price. The best items to buy in the spring are linen and handbags.
2. Outdoor. If you like doing activities outdoors shop for off-season items for fall or winter sports such as skis, ski suits, hats, gloves, boots or other items.
3. Free Events. Participate in free activities in your local community by viewing local newspapers and magazines for events that occur during the spring season.
4. Food. Buy in-season items or visit local farmers to get deals on foods. Buy in-season fruits and vegetables such as: mango, pineapple, strawberries, carrots, asparagus, collard greens, mustard greens, spinach, and artichokes.
5. Online. View website such as Groupon or Living Social for discounts and specials. Also visit social media websites for spring season deals.
6. Local. Visit local vendors to get deals on items and help support local businesses in your area.
7. Consignment. Visit consignment shops for clothes brought in by those who have done spring cleaning in their closets.
8. Specials. Setup alerts, subscribe to newsletters or visit websites to purchase gift certificates or gift cards which can be used in the future.
9. Groceries. Use the oven less and prepare meals ahead of time. Pull out the George Forman grill or your gas grill and prepare meat and vegetables on the grill to save on electricity.
10. Utilities. Open the blinds during the day to let heat in if it is cool at night where you live to save on heating costs. If you live in a warm climate open the windows before you go to bed or in the morning to cool off your home. Keep the blinds closed during the day to keep the heat out.
11. Insulate. Make sure you home is properly insulated to prevent heat from escaping through windows and doors and to save money on utility costs. Seal any cracks that appear in your home.
12. Thermostat. Set your thermoset at 78°F when at home and increase the temperature while you are away from home to save money on cooling costs.
13. Use Fans. Use ceiling fans to help circulate air.
14. Maintenance. Schedule regular maintenance for your heating and cooling units.
15. Water Heat. As spring approaches turn down the temperature of your hot water heater and set it to 120°F to lower your heating costs.

Why You Need an Unexpected Fund

Many Americans today don't have an emergency fund or unexpected fund. If you don’t have a savings account you will have to use a credit card or get a payday loan to pay any unexpected expenses.

Your emergency fund is your safety net, in case you get sick or lose your job you can use your emergency savings to hold you for a few months until you can find a new job or to help get over a financial crisis. Your emergency account should be separate from your checking or savings accounts and should only be used for emergencies such as an unexpected expense, unemployment, reduction in pay, sickness, major car or home repairs, medical bills, etc.

An emergency fund should be enough savings to pay your bills for at least 9 to 12 months. Money for an emergency fund should be readily accessible and stored in a checking or savings account, preferably a high interest savings account such as Emigrant Direct or ING or a money market account where you can make money while saving money.

To determine how much money is needed to pay 9 to 12 months worth of your bills do an inventory and write down all your bills and expenses and the monthly amount spent for each. Calculate the total. Use this amount and multiple by 9 or 12 to determine the total amount you need to save in your emergency fund.

You can start off by contributing small amounts to your emergency fund until you are able to contribute more. Start off with a contribution of at least $20 a month to your emergency fund. Once you are able to contribute more to the fund do so.

Once you have reached your emergency fund goal start developing some long-term savings goals such as purchasing a home, paying for your children’s college education, starting a business or planning for retirement. A great site to learn about retirement planning is www.morningstar.com and click on the Investing Classroom link morningstar.com/Cover/Classroom.html.

There are many organizations that provide emergency services for people such as the American Red Cross Emergency Assistance, Salvation Army Emergency Assistance Program and the United Way. The utility companies provide funds for people in need. These funds can be used to pay basic necessities and any other bills.

How Will I Pay My Taxes

It’s tax season again. Many people dread tax season. I dread having to gather all of my receipts and enter the information in the automated tax software I purchased. However, I must admit it is much easier than having to fill out paper forms. This year the deadline for filing your taxes is April 17, 2012. Tax season is even better if you don’t owe taxes. However, if you owe taxes there are several options available.

To make sure you are not violating any tax laws consult a tax lawyer, CPA or certified tax accountant to review your taxes and supporting documentation to make sure that the amount of taxes you owe is correct. Here are 10 ways to pay your taxes.

1. You can setup an installment agreement and pay the amount owed in 3 years.
2. Request an extension and request the maximum extension time of 6 months.
3. Pay by credit card. Pay by credit card if you don’t have the money when the bill is due.
4. Bank Loan. Apply for a bank loan to cover the entire amount of taxes owed. The interest rate is much cheaper than setting up a payment plan with the IRS or a state taxing authority.
5. Use savings. Using savings accounts, savings bonds, stocks, etc. to pay the taxes.
6. Life Insurance. Take out a loan from your life insurance policy to pay the taxes.
7. Borrow. Borrow money from family or friends.
8. Earn extra money. Consider getting a part-time job or work overtime at your existing job to earn money to pay back your taxes.
9. Request an Offer in Compromise. An offer in compromise allows you to settle your for less than the full amount in you meet certain requirements.
10. If you owe taxes from a previous year get caught up on all back taxes first then address any taxes owed for the current year.

The IRS has ten years to collect on back taxes so it is best to work with them to setup a payment plan to back the amount owed. For more information visit the IRS website at irs.gov.

How to Deduct Free Services on Your Taxes

The IRS provides hundreds of deductions that taxpayers can claim but many taxpayers are not aware of them. No one has the time or wants to read through all of the tax forms and instructions to find out what they are. A good resource to find hidden tax deductions is the book, Lower Your Taxes by Sandy Botkin.

There are tons of hidden tax deductions that can be claimed. One hidden tax deduction that tax payers can claim is free services. Here are 9 ways to deduct free services and other expenses on your taxes.

1. Pro Bono. Pro bono is when you donate your time and services for free or at cost. If you donate time and services for an event but ask for payment to cover traveling expenses - the time and services are considered donated and can be deducted. However, the services must benefit the general public.
2. Free Services. If you provide free services to a charity you may have to claim the income for the value of the job as if you got paid even though you didn’t. For example if you are a speaker and provide a seminar to a charity and would normally get paid $1,000, you may have to report $1,000 on your taxes. Talk to an accountant to or contact the IRS tax help line to get specific tax information about the services provided. The services must benefit the general public.
3. Volunteer Work. If you volunteer your time and services to help a charity you can deduct: costs for hosting a party or fundraiser for an organization, supplies purchases which are required to perform volunteer work, cost of a uniform or clothing required to perform volunteer work, telephone expenses, and travel expenses such as parking, tools, gas, miles traveled, etc. Keep receipts of all expenses.
4. Food. You can deduct food and tips as long as you have the receipts as proof of payment.
5. Entertainment. You can deduct entertainment expenses except for alcoholic beverages.
6. Expenses. You can deduct “ordinary” and “necessary” expenses associated with or necessary for your job especially for a trade. Ordinary expenses are common expenses for your trade or profession. Necessary expenses are those that are helpful for you to perform your job and apply to full-time or self-employed employees.
7. Travel Expenses. Some travel expenses can be deducted if they were incurred to benefit a charity. Travel expenses that can be deducted include: hotel costs, rental car and airline tickets.
8. Business Meetings. If you attend conferences or business meetings for your job you can deduct travel expenses includig the cost to drive to the event if you are not reimbursed by your job.
9. Car Mileage. If you use your car for your job or business and use it for that reason only, you can deduct the entire operation costs. If your car is used for your job and business you can only deduct the cost for business use. You can deduct mileage usage using one of two methods: the standard mileage rate or the actual expense method.

The deductions are only allowed if you itemize your deductions. Visit the irs.gov website to get more information.

Can Social Security Benefits Be Taxed

Many people may not realize that the Social Security benefits they receive may be taxable. All Social Security recipients should receive a Form SSA-1099 from the Social Security Administration which shows the total amount of their benefits. Taxing of your social security benefits depends on your income. If your only income is from social security benefits you will not be taxed.

However, if you have supplementary income sources your social security benefits may be taxed. If your social security benefits are taxed the taxable portion cannot exceed 85% of your total benefits. As your income rises and passes certain thresholds, the proportion of social security benefits that becomes taxable also increases.

The good news is that only 34% of recipients pay taxes on their social security benefits. Unfortunately, some states tax social security benefits. Verify the laws in your state to see if you are required to pay taxes on your benefits. The IRS provides 7 tips to help you determine if your social security benefits are taxable.

1. How much. To determine if any of your social security benefits are taxable depends on your total income and your marital status. Use the worksheet in the Form 1040A or Form 1040 Instruction booklet to determine if you will be taxed.

2. Taxable. If Social Security benefits were your only income for 2011 your benefits are not taxable.

3. Additional Income. If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status.

4. AGI. Your taxable benefits and modified adjusted gross income (AGI) are figured on the worksheet in the Form 1040A or Form 1040 Instruction booklet. Your tax software can also compute it for you.

5. Calculate. You can do the following quick computation to determine whether some of your benefits may be taxable:
• Add one-half of the total social security benefits you received to all your other income, including any tax-exempt interest and other exclusions from income.
• Compare this total to the base amount for your filing status. If the total is more than your base amount, some of your benefits may be taxable.

6. The 2011 base amounts for benefits are:
• $32,000 for married couples filing jointly.
• $25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouse at any time during the year.
• $0 for married persons filing separately who lived together during the year.

7. For additional information on taxing of social security benefits, see IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits on the IRS website or by calling 800-829-3676.

How to File Your Taxes for Free

Filing taxes can be a burden for most people. If you don’t have accurate records it can be a nightmare. The best way to file your taxes is to stay organized. File all receipts, paperwork or possible paperwork related to personal and business expenses and tax deduction in one folder.

The main expenses to keep track of are: all business income and spending, home office expenses, retirement contributions, student loan interest, energy efficient upgrades, real estate purchases or sales, charitable donations, contributions to college savings plan, and capital gains.

Some taxpayers are eligible to file their taxes for free. Here are 4 ways to file your taxes for free.

1. Free Software. If your adjusted gross income is $57,000 or less you can use free tax software such as: Turbo Tax, Free TaxAct, Tax Slayer or H&R Block’s Free File.

2. Use Free Forms. Anyone can use free file fillable forms from freefilefillableforms.com. The site provides online versions of paper federal tax forms.

3. File Electronically. Efile (electronically) your tax return for free by using direct deposit or pay your taxes online for free.

4. Paper forms. Use paper tax forms to file your taxes and mail them to the IRS. The only cost is postage.

You can get your taxes prepared for free using the IRS Volunteer Income Tax Assistance (VITA) program or the Tax Counseling for the Elderly (TCE) programs that. VITA prepares taxes for people who make $50,000 or less. Call 1-800-906-9887 to get more information.

TCE offers tax help for people 60 years old or older at 1-888-227-7669. You can also visit an IRS volunteer at a self-assistance service site to get free tax preparation. Visit the IRS website to find a facilitated self-assistance site.

A Light at the End of the Tunnel for Homeowners

This week marked a huge settlement in the mortgage industry totaling $25 billion dollars that will be paid by 5 top banks who participated in the mortgage crisis from 2009 through 2011 for privately owned mortgages. This is the biggest settlement since the tobacco deal in 1998.

The 5 banks include: Bank of America which will pay $8.6 billion, Wells Fargo will pay $4.3 billion, JPMorgan Chase will pay $4.2 billion, Citigroup will pay $1.8 billion and Ally Financial will pay $200 million.

Forty-nine states joined the settlement. Oklahoma created their own deal with the banks. The government will negotiate with 14 additional lenders to join the settlement. Seventy-five percent of the settlement money will go towards California and Florida homeowners who were hit the hardest during the mortgage crisis.

The settlement deal will reduce loans for some Americans who are upside down on their homes (owe more money than the home is worth). The deal will require banks to send checks for $2,000 to approximately 750,000 homeowners whose homes were illegally foreclosed from 2008 to 2011.

Approximately 11 million homeowners are upside down on their homes or at risk of foreclosure. The deal would help approximately 1 million of those through loan assistance. The banks will be required to provide $17 billion in principal reduction and loan modifications for delinquent borrowers who are facing foreclosure. The banks will also provide $3 billion to help borrowers who are current on their mortgage payments but unable to refinance because they owe more than their homes are worth.

The banks are also required to pay a combined total of $5.5 billion to state and federal governments. Bank of America will pay an additional $1 billion to resolve a separate investigation into fraudulent conduct by the bank and the Countrywide Financial unit it acquired in 2008. The Federal Reserve is imposing an additional $766.5 million in penalties on the banks as part of the settlement.

The banks have 3 years to fulfill the terms of the deal. Homeowners are still able to sue their mortgage lenders on their own. State and federal authorities can still pursue criminal charges against the banks.

The settlement releases the banks from civic government claims over improper foreclosures and mishandling of requests for loan modifications. The deal requires the banks to make foreclosure a last resort for homeowners and the banks cannot foreclose on a homeowner that is being considered for a mortgage loan modification. As part of the settlement banks must adhere to new servicing standards, including stricter oversight of foreclosure processing and provide a single-point-of-contact for borrowers.

If you have a mortgage with any of these banks now is a good time to request a refinance or do a loan modification. Take a look at your credit report and setup payment plans for old debt and pay off any small accounts to help increase your credit score and chances for approval.

Valentine's Day Shopping Deals for Singles

Valentine’s Day is catered towards couples and buying gifts for your significant other. However, for singles you can catch some good sales if you plan on shopping. Visit online sites such as Best Buy, Target, Wal-Mart and Amazon for deals or follow your favorite stores on twitter to learn about coupons and offers. Here are 15 ways to get great deals during Valentine’s Day sales.

1. Electronics and smartphones. You may have to get a shade of red, pink or white for your electronics but you can save a bundle.
2. Books. Purchase your favorite books including romance novels and autobiographies.
3. Accessories. Buy accessories including jewelry and handbags for a good deal.
4. Clothing. Get shoes and clothing and save up to 20% off the regular price.
5. Home. Buy home accessories, furniture and furnishings such as carpet, window treatments and draperies. You can save up to 40% off the regular price.
6. Sports equipment. If you like playing winter sports you can save up to 45% off the regular price on equipment, clothing and shoes.
7. Sports memorabilia. Since football season has ended you can purchase your favorite team jersey or other team merchandise for a cheaper price.
8. Swimsuits and summer clothes. If you plan on going to the beach during the spring or summer now is a good time to buy a swimsuit. You can save up to 25% off the regular price.
9. Jewelry. You can get good deals on jewelry.
10. Plants and flowers. You can get great deals on plants and flowers the day after Valentine’s Day.
11. Air conditioners. If you need a new air conditioners or cooling unit now is a good time to purchase one while demand is low.
12. Bicycles. You can find great deals on bicycles and motorcycles while demand is low.
13. Gas grills. If you plan on cooking out this summer get your gas grill now while prices are low.
14. Linens and beddings. Stores have lots of sales starting in January up until spring.
15. Wedding services. If you plan on getting married winter and the beginning of spring are great times to plan a honeymoon and book wedding services.

Stop Getting a Tax Refund

A tax refund is the amount of money you over pay in taxes in each year. A tax refund is just another way to help the government make money. The money each taxpayer pay during the year is put into a high interest bearing account and the government keeps the interest. The money given in tax refund is small compared to the money earned each year from the millions of taxpayers in the U.S.

There are only a few instances when you should overpay: if you are trying to pay down debt or want to pay off your mortgage or car loan off faster. You are forced to pay taxes and there is no way around that. If you work hard all year long why do you make yourself wait to get back money you earned? Get your money upfront by adjusting your tax withholdings. Consult a tax professional to make sure don’t end up owning money at the end of the year.

Unfortunately, many Americans get excited when they find out they are getting a tax refund. However, for many Americans getting a tax refund means it will be spent as soon it is received. If you are struggling to pay bills or need to get out of debt your tax refund can be a lifesaver.

But, it is up to you to determine how to spend it. If you do get a tax refund this year here are 8 smart ways to spend it but start now by adjusting your tax withholdings so you can get more money in your paycheck this year.

1. Get current. If you are behind on any bills, use the money to catch up. Make sure you get current on all utility bills and car payments and your mortgage.
2. Pay down debt. Pay off collection accounts, judgments, and liens first, and then pay down current debt.
3. Create an emergency fund. Create a savings account to cover your monthly expenses for 9-12 months.
4. Invest it. Start a retirement account. If you don’t have a retirement account with your employer sign up tomorrow. You can also start you own individual retirement if your employer does not offer one.
5. Save for your children's college education. If you haven't already done so start saving for your children's college education. College tuition increases at 3 times the rate of inflation. Put the money in a 529 plan or comparable college savings plan.
6. Purchase a home. Now is a great time to buy a home because interest rates are low. Use the money to put towards down payment and closing costs.
7. Increase job skills. Take an inexpensive class to boost your skills at work. This can help you find a job or increase your chances of staying employed.
8. Donate. Make a tax deductible donation which you can write off on your taxes next year.

Will Blackberry Be the Next Business To Fail

The Blackberry company Research in Motion began in 1999 and earned over $15 billion in the last 8 years. Many businesses fail after great success because they forget that maintaining success requires continual creation of new products and services. Keep your existing products but frequently improve on them and provide additional products that compliment your existing products.

I have a blackberry curve 3G but hate seeing that timer stall sometimes for 30 minutes trying to display a web page. Blackberry is great for accessing email but the world is constantly changing and users require more features all the time but it seems that blackberry hasn’t been able to keep up. The iPhone has forced companies to step up their technology advances but blackberry hasn’t kept up. Many blackberry owners are switching over to the Droid or iPhone to get additional features and faster download times.

We live in a time when innovation is the key to obtaining and maintaining company success. If you have an older blackberry in some cases are unable to read common attachments such as PowerPoint, Adobe and flash files. The operating systems are not comparable to Microsoft or Unix operating systems and in some cases users get an error message stating that a feature, program or file is unsupported.

Due to the continued effects of the recession and company and government budget cuts many companies are phasing out or reducing the use of company issued smartphones. Employees that are issued phone are choosing models other than blackberry.

Users are more mobile than ever and need devices that can meet their needs anytime anywhere. Users need smartphones that can access their email quickly, download common file types quickly and allow them to view reports and presentations for meetings. Blackberry does not provide those features which makes it seem like the dinosaur of smartphones.

Blackberry needs a complete product overhaul, needs to survey existing customers about new features they would like to see, ensure fiascos like the outage incident in October 2011 doesn’t happen again, hire a new sales and marketing team and hire the brightest information technology college graduates to bring fresh new ideas and implement some of them.

I will begin my search for a new smartphone that will allow me send text messages, be able to download files in less than 60 seconds, watch videos, view common file types such as Word, Excel, .pdf and PowerPoint and view reports and that weighs a few ounces. Will you keep your blackberry or switch to another smartphone company?

Your Personal Budget - The New Recovery

Many people know they should track their spending and create a budget or spending plan but don’t want to. The thought of knowing how much money you actually owe, how much money you earn and how much money you actually spend each month is terrifying. If you create a budget you will quickly see how you spend your money. You won’t be able to hide it or run from it any longer. If you know, other people may know too, yes those other people are your creditors who continue to call asking for a payment.

Many people are fearful of creating a budget and have good intentions by creating one but don’t stick to it. To stick to creating a budget you have to view a budget as a tool to help you. You are the only one who has to see your budget. Many people today live paycheck to paycheck and are in mounds of debt, in some cases because they didn’t create a budget or didn’t stick to it.

If you know how much you earn, how much money you owe and how much money you spend you can change the direction of your life. A budget helps you if you have an unexpected expense. Since 2008 many people have had unexpected expenses. In 2010 the country experienced several fires, floods and earthquakes some in areas that were not expected. If you did not have homeowner’s insurance to cover the damages that is example of unexpected expense.

Create a budget by writing down everything you spend money on each week or during each month and subtract your income. If the result is less than 10% of your monthly income you need to make some adjustments to your spending. A balanced budget consists of: 15% transportation, 15% debt, 10% savings, 35% housing and 25% other expenses.

Create an emergency fund to cover your total monthly expenses for 9-12 months. Creating a budget will help you to reduce spending and prevent you from using credit cards to pay for purchases. Use credit cards for emergencies only.

Develop financial goals when creating your budget. Financial goals provide motivation for you to work towards reaching that goal and provides a sense of accomplishment when the goal is met. Some examples of financial goals are: pay off a credit card, buy a home, start a business, take a vacation, etc. Here are 6 ways to create a budget and stick to it.

1. Take accountability. Take accountability for your actions, don’t blame others for your current situation. Learn how to be flexible and adjust to changes in your life.
2. Use pen and paper, use a software tool like Quicken or Microsoft Money or use the envelope method. Once you visually see where you are spending your money it will make it easier to reduce spending.
3. Create goals. Write down a list of at least 5 financial goals. If you cannot achieve any or can only achieve 1 or 2 of your financial goals you need to make some changes in your spending habits. Write down a list of all of your debts. Develop an action plan and beside each debt write down steps on how you can pay the debt off: reduce spending, use coupons, use money savings tips, earn extra income, etc.
4. Pay off small bills first. Pay down any small bills and debt first. Once all your small bills have been paid off start tackling the larger bills. Setup payment plans for bills you cannot pay off in full. Be sure the account balances are updated on your credit report.
5. Support network. Surround yourself with at least three people who are doing better financially and gain financial advice from them.
6. Seek professional help. Consult a financial coach, financial planner or advisor to help you create a budget or spending plan and provide recommendations to help you stay on track.

Have You Recovered Yet

The recession began in 2008 and many Americans are still feeling the effects and have not recovered. Some Americans are in denial about their financial situation, some refuse to take action, some don’t know what to do, some are paralyzed by fear and some believe that this is how life should be. Stop those negative feelings and take action to transform your life. If you have not recovered from the effects of the recession in 2008 ask yourself why by using the 5 why method. Ask yourself Why 5 times to find the real reason why your situation has not improved.

Don’t let people or situations prevent you from achieving your goals. You are the only one preventing you from being successful. To be successful you have to think as a successful person which means eliminating negative beliefs and reinforcing them with positive ones. There are several options available to achieve this; pray, mediate, take yoga, read motivational books, read affirmations or attend support groups.

The unemployment rate has fallen to 8.3%. According to US News Americans are saving 3.5% of their salary which is fair but we need to save more. In 1973, Americans saved 11% of their salary and in 2009 Americans saved 8% of their salary. If finances are a big part of your recovery you may need to downsize or downgrade your lifestyle. If you drive a luxury car that costs $30,000 or more you need to downsize. If pay a mortgage payment that will cause you to lose your home if you are behind 2 or more payments, you need to downsize. If you are living paycheck to paycheck you need to downsize. Trade in your car for a cheaper one. Sell your home for a cheaper one or refinance to lower the interest rate and monthly payment.

Here are 10 things you need to do to recover financially and survive any financial crisis. Create a financial kit or action plan that includes the following:

1. Do you have a list of all of your creditors, the total amount of debt owed to each, their contact information, your minimum monthly payment and the due date.
2. Do you have a savings account or emergency fund with enough to cover your monthly expenses for 9-12 months?
3. Do you have health, life and disability insurance?
4. Do you have adequate homeowner’s insurance? Does it include flood and earthquake damage?
5. Do you have adequate car insurance, full coverage if you have children or a family?
6. Do have a financial backup plan? How will you pay your bills if you: lose your job, get sick, lose a spouse to death, get divorced, have another child, lose your health benefits, get reduced work hours, lose your home, etc.
7. Do you have any assets? Create a list of all of your assets and determine their worth, you may be able to sell them if you have a financial setback.
8. Are you saving enough for retirement? You should have a minimum of $1,000,000 saved by retirement age. More if you want to maintain the same lifestyle you have now. Save at least 10% of your monthly income towards retirement.
9. Keep at least one credit card open with a balance of 10% or less of the credit limit. Get current on any late payments. Use your credit card for emergencies only.
10. Determine your net worth each year. Identify all of your debt and subtract any assets, any money left over is your net worth. If your net worth is a negative value that is a sign you are spending more money than you should.

13 Products That Save You Money

The cost of buying everyday household items and groceries has increased.
Consumers are still feeling the effects of the recession and are looking for ways to reduce costs to make their dollar stretch longer. Two ways to make your dollar stretch farther is by using less and by buying products that save you money. Here are 13 products that can help you save money.

1. Use What You Have. Use products you already have in your home such as lemon juice to fight bacteria and baking soda to clean and deodorize. You can also use white vinegar to cut grease, eliminate odors, stains and remove mildew. Use borax to clean and disinfect and to clean walls and floors. Cornstarch can be used to clean windows, polish furniture and shampoo carpet.
2. Fresh Produce. Buy fresh produce from farmer’s markets or local farmers to save money.
3. Energy Efficient. Buy energy efficient products and appliances such as: florescent light bulbs, refrigerator, dishwasher, washing machine, dryer, blender, toaster, microwave, hot water heater, furnace, computer, printer, fax machine, scanner or freezer. Look for the Energy Star symbol which indicates a product is energy efficient. You also get a tax credit when you purchase certain energy efficient appliances.
4. Laundry Detergent. Use the recommended amount and adjust as needed. Avoid using more than the recommended amount because this causes more soap buildup on your clothes and may clog up your washing machine. You may also end up having to rinse your clothes twice to remove the excess soap.
5. Generic. Buy generic brands for items such as: paper products, sugar, flour, butter, over-the-counter medications, vitamins and toiletries. Do research to verify which generic brands are the best. Compare ingredients to brand name versions to find the best product.
6. Drying Clothes. Purchase a clothes line or drying rack to dry clothes. When using a clothes dryer dry clothes slightly and then hang on a clothes line or drying rack.
7. Cooking. Make meals for one week, two weeks or a month at a time to reduce preparation time. Cook main dishes and freeze and prepare side dishes only. You can also prepare sides dishes and freeze them.
8. Dishwasher Detergent. Use the recommended amount and adjust as needed. Avoid using more than the recommended amount because this causes more soap buildup on your dishes and may clog up your dishwasher. You may also end up having to rinse your dishes twice to remove the excess soap.
9. Freezer. Buy a freezer to store frozen items and stock up on sale items.
10. Dryer Sheets. You can use dry sheets more than once or cut them in half to save money.
11. Deodorant. Follow the directions on the product to test it out. If you find that you need to use more do so. If you sweat a lot buy a deodorant made specifically for those who sweat more than normal.
12. Toothpaste. Based on most dentists’ recommendations you only need to use the size of a pea to brush your teeth. Don’t cover your toothbrush with toothpaste. If you need to use more repeat the process.
13. Other. Use the Fridge Smart System from Tupperware to make produce last longer. Use the FoodSaver Vacuum Sealer to seal food which keeps food fresher longer than plastic wrap, foil or zipper bags.

14 Reasons to Use Online Bill Payment

The average consumer pays 8 to 15 bills each month. The cost to mail a bill is $.44. If you mail 10 bills a month that costs $4.44 a month plus the cost of driving to the post office. In a year you spend $52.80.

One way to save money on paying bills is by using online bill payment. All banks offer online bill payment usually for free. A great benefit of paying bills online is you get do so while in your pajamas. Using online bill payment helps reduce paying late fees, helps pay down debt faster and reduces the burden and stress of paying bills by checks or by phone. Here are 14 benefits of using online bill payment.

1. Easier. Available 24/7 and can be accessed from anywhere in the world.
2. Saves time. Eliminates the manual payment process of paying with checks and making trips to the post office. The time required to pay bills can be done in the amount of time a commercial airs on TV.
3. Save Money. Eliminates postage fees which seem to increase every year. No fees are required for using online bill payment.
4. Centralized. All bills are located in one secure location and helps you stay organized. You may still receive paper bills or electronic bills.
5. Fees. Reduces late fee charges which can occur if a payment is mailed in time.
6. Schedule. Payments can be setup on a recurring schedule based on your paycheck date or other income received. Payments can be made on the due date or near the due date and will still be made on time.
7. Secure. Payments are secure and reduce chances of lost payments. Uses encrypted website and provides protection against identity theft.
8. Balance. View balances real-time.
9. Service. The service allows you to perform other transactions such as viewing account activity and online statements.
10. Green. Helps the environment by lowering the usage of paper, envelopes and stamps.
11. Organized. Reduces the amount of paper in your home.
12. Budget. Provides an easier way to create a budget and track your spending.
13. Alerts. Allow you to setup reminders when bills are due or when a check or payment has not been processed.
14. Search. Provides an easy way to search payment history and provides the ability to download payment history.