Tips to Buy, Stay In or Sell Your Home

June is National Home Ownership Month. Many Americans purchases homes during June. In June 2010, home sales increased 24% from the previous month. Owning a home is one of the best ways to generate wealth. Owning a home requires financial discipline and sacrifice. Create a budget or spending plan to help manage your finances to make sure you can stay in your home for as long as you like and to help reduce the chances of filing for bankruptcy or foreclosure.

Your monthly mortgage payment should be no more than 38% of your total monthly income. This will ensure that you have extra cash to pay for unexpected expenses and will reduce the chances of using a credit card and going into debt. The advantages of owning a home are: it increases your credit score, proves that you are a responsible spender, provides a tax write-off, increases your financial worth, and provides you with an asset that will appreciate over time.

Before you buy a home you need to prepare for the home buying process. Estimate your monthly mortgage payment. Subtract the difference of the estimated monthly mortgage payment and your current rent (if you pay rent). Here are 6 tips to help you buy a home.
1. Find the best loan
2. Use home buying programs
3. Find a home and make an offer
4. Get a home inspection
5. Shop for homeowners insurance
6. Prepare for settlement and closing

Here are 10 programs to help homeowners stay in their homes.
1. Hope Now Program – www.hopenow.com, 888-995-4673
2. FHA Secure Loan Program – http://portal.hud.gov.
3. Home Affordable Refinance Mortgage Program (HARP) - http://www.makinghomeaffordable.gov/refinance_yes.html
4. Home Affordable Modification Program (HAMP) - https://www.hmpadmin.com/portal/programs/fha_hamp.jsp
5. Second Lien Modification Program (2MP) –https://www.hmpadmin.com/portal/programs/second_lien.jsp
6. HAFA (Home Affordable Foreclosure Alternatives) Program - https://www.hmpadmin.com/portal/programs/foreclosure_alternatives.jsp
7. FHA HAMP (FHA Home Affordable Modification Program) –https://www.hmpadmin.com/portal/programs/fha2lp.jsp
8. FHA Second Loan (FHA2LP) – https://www.hmpadmin.com/portal/programs/fha2lp.jsp
9. UP (Unpaid Principal) –https://www.hmpadmin.com/portal/programs/foreclosure_alternatives.jsp
10. Retired Veteran Program, www.va.gov

Here are 8 tips on how to stay in your home or sell your home.
1. Short Sale. If you cannot afford to keep your home and you are upside down on your mortgage, then a short sale might work for you. Your lender must approve the sale because you would have to sell your home for less than what you owe your lender. As part of your negotiations, you need to make sure that the lender agrees to accept the sold proceeds as satisfying your loan debt.
2. Reinstatement. Your loan is reinstated to current status after you pay the default amount and any other costs or fees.
3. Loan modification. Your lender modifies your current loan to make your payments more affordable by lowering the interest rate and/or extending the mortgage term and adding the default amount to the back end of your loan or forgiving it. Provide documentation to show you are experiencing a hardship.
4. Forbearance. Your lender works out a short term payment plan for you to get caught up on your payments. After you are caught up, you go back to paying your regular mortgage payments. Occasionally, the lender will reduce the principal amount on your loan as well.
5. Deed in lieu of Foreclosure. Signing the deed back to the lender, handing them the keys, and walking away owing the lender nothing.
6. Repayment. Pay the past due amount over a period of months. Read the terms carefully to be sure you can afford the payment.
7. Refinancing. If you have equity, you can refinance by obtaining a new loan with a lower interest rate, at a fixed term with a lower monthly payment and pay off your existing mortgage.

Fraud is an aspect of every industry including the mortgage industry. Beware of mortgage scams and illegal practices. Here are 8 tips to prevent being a victim of predatory lending and discrimination:
1. Do you research before applying for a mortgage loan
2. Shop around to several lenders before making a selection
3. Ask questions if you don't understand something
4. Take the paperwork home and read it over, contact a real estate lawyer or law school student to help explain any legal terms and information you don't understand
5. Make sure all of your questions regarding the loan are answered
6. Make sure you are comfortable with the terms provided
7. If the terms keep changing find another lender to do business with
8. Go with your gut instinct, if it seems too good to be true it probably is

Save Money on Memorial Day

Memorial Day which was originally called Decoration Day, is a day of remembrance for those who died serving in the military. Memorial Day was officially proclaimed a holiday on May 5, 1868 by General John Logan and was first observed on May 30, 1868. The first state to officially recognize the holiday was New York in 1873.

Memorial Day passed by Congress as part of the National Holiday Act of 1971. Memorial Day is celebrated in almost every state on the last Monday in May. However some southern states such as Texas, Louisiana, Tennessee, Alabama, Florida, Mississippi, South Carolina and Georgia also celebrate Confederate Day to honor those who served in the Confederate War.

Many advertisers take advantage of the Memorial Day holiday as another way to make money. Unfortunately they never mention anything about the real reason for Memorial Day. Advertisers should at provide extra discounts for those who have served in the military or are currently still serving in the military. If someone fights for our country, why can’t you give them a discount on a purchase? We should embrace our military and treat them better than we currently do.

Memorial Day is usually the official start of the summer season when pools are opened, families begin cooking on the grill, summer clothes are pulled out and people start heading to the beaches. Many families and friends get together during this weekend. Many people also head to the mall to see what sales are offered. If you have to go shopping or spend money this Memorial Day weekend here are 6 tips to save money.

1. Save money on gas. With the cost of gas prices I have cut back on driving here and there and take into consideration the distance I have to drive. Create a traveling zone when driving. When considering driving use MapQuest to map the address and see how many miles it is from your home or office. If the distance is more than the maximum number of miles you are willing to drive do not attend the event. My maximum is 30 miles one way from my home or work.
2. Food. If you are having family or friends at your home keep the menu simple but provide variety. Use different sauces, toppings and marinades to provide flavor and variety. Ask everyone to bring a dish or dessert to help save money.
3. Fun. Skip going to the movies or amusement parks and play games outside such as volleyball, soccer, cricket, horse shoes, sack races etc. to save money and spend more time with your family and friends.
4. Skip the mall. Don't let the media or advertisements trick you into buying something this Memorial Day weekend simply because it is on sale. Most prices during holiday sales are marked up and a discount is given on the marked up price. If you have to buy something at the mall comparison shop and determine which store is offering the best holiday sale. Check online sites to see if you can get a better deal.
5. Budget. Create a budget or shopping list and only buy the things you absolutely need for the holiday. Visit local vendors, food co-ops or discount stores to purchase meats, fruits and vegetables which will be much cheaper than the department store.
6. Free. Check your local newspaper or listen to your local news station to find free events to attend during the holiday weekend.

Natural Disaster Financial Tips

There are many types of natural disasters that occur during a year such as hurricanes, tornadoes, monsoons, tsunamis, twisters, earthquakes and more. Recently several of the Midwest states have experienced damaging tornadoes. Some homes were completely blown away or toppled to the ground. After the dust has settled the first thing one thinks about what do I do know. The next thing to consider is their identity. When I heard the stories I started to wonder did they have a safe and copies of all of their bills and financial papers. How will they regain their identity and start their life again? What is the first thing they should do? These are just some of the questions that must be considered when rebuilding after experiencing a natural disaster. Here are 14 financial tips to help survive a natural disaster.

1. Notify. Contact all of your family and friends and employer and let them know what happened. Ask them if they know of any resources or people that can assist you with food, clothing and shelter.

2. Insurance. Contact your insurance company and put in a claim. Contact a lawyer to get legal advice and protection in the event your insurance company becomes difficult with reimbursing you for your loss.

3. Mail. Ask a friend or relative if you can use their address to receive mail temporarily. Go to your local post office and forward your mail to that address.

4. Inventory. Make a list of all the companies you do business with. Include the name of the company, mailing address, payment address, phone number, type of account and website. Go to a friend’s house or your local library and get the contact number for each company. Call each company and tell them you have been a victim of a natural disaster. Give them your temporary mailing address to get duplicate copies of all of your bills.

5. Identification. Contact your local passport, motor vehicle and social security administration office to get duplicate copies of your driver’s license, SSN and passport. Also contact your local Office of Vital Records, Public Health Department or county recorder’s office to get a duplicate copy of your birth certificate.

6. Financial. Contact all of your financial institutions and ask for duplicate copies of your financial statements. Go to your local bank branch and have a flag put on any unused checks if you know the check numbers. If not, order a new set of checks and have them mailed to the branch. Once you determine the numbers of the unused checks have the bank put a flag on them to prevent fraud. Ask for a new check card or debit card and pin.

7. Credit. Contact your credit card companies and ask for a new credit card for each of your accounts. They make ask you to complete an affidavit stating what happened. Contact the 3 major credit bureaus, Equifax, Experian and TransUnion and place a credit freeze on your credit reports.

8. Media. If possible, purchase a small portable tv or radio to hear important information from the media about resources available for victims.

9. Property. If you have any property left that is not totally damaged leave the property where it is so the insurance company can examine the property and perform a full investigation. Make a list of all property that was in your home with the following information categorized by room: item, date purchased, estimated value, cost to replace the item, indicate if the item was insured, insurance company who insures the item, quantity and if the item was still under warranty.

10. Service Providers. Make a list of any other service providers that you do business with: mechanic, doctor, lawyer, accountant, financial planner, psychologist, marriage counselor, plumber, lawn care professional, professor, tax preparer, barber, hairdresser, etc. Include the name of the company, mailing address, payment address, phone number, and website.

11. Needs. Create of things you need to survive: food, toiletries, clothing, etc. Categorize by the name of each person in your family, size and the cost of each item.

12. Budget. Create a budget to determine how much money you earn after taxes, monthly bills and expenses and how much you will need to replace basic necessities.

13. Spend Wisely. Replace missing items by shopping at discount or outlet stores, buying in bulk and buying items on sale.

14. Live for Tomorrow. Document what you learned from this experience and steps to take if you ever have this type of experience in the future. Make sure you have adequate insurance coverage. Purchase a fireproof and waterproof safe. Keep copies of your SSN, birth certificate, driver’s license, bills, financial statements, will, taxes, insurance papers, mortgage paperwork, and credit card statements in the safe. Also keep a list of all of your inventory lists in the safe.

Tips on Using Frequent Flyer Programs

Frequent flyer programs are offered by airlines companies to customers who fly more than the average flyer. Some programs offer points, upgrades, priority seating, discounts on products, credit for purchasing products from partners and more.

Some frequent flyers obtain miles for personal and business travel. Avoid confusing business travel with personal travel miles. Open a separate account for your business travel miles if you can. If not, be sure to keep track of your personal miles. Some frequent flyers have been prosecuted and convicted for redeeming business frequent flyer benefits that were used for personal travel.

Frequent flyer programs can be tricky and can prove difficult to get due to all of the restrictions. Some programs you have to travel at least 25,000 miles before you can start redeeming benefits. When looking for a frequent flyer program to participate in consider the following:

1. Perks
2. Do their fly to your home airport or preferred airport
3. Do your points expire or have to be used within a certain time period
4. Do they provide other options for using points that will soon expire
5. What are the restrictions and guidelines
6. Do they offer points for partner company purchases
7. Does the program match your travel habits

Here are some tricks frequent flyer programs use
1. The number of seats are limited
2. Increased the number of points needed and offer fewer flights
3. May have to book months in advance and settle for an inconvenient flight time

Here are some perks of frequent flyer programs
1. If you can’t use your miles before they expire use alternatives such as using them for magazine subscriptions, making purchases at airline websites or sites such as points.com, renting cars, gift cards or giving them away.
2. Trade frequent flier miles or buy miles at another airline using points.com. Ask friends or family to share miles with you.
3. Sign up for a frequent flyer miles check card. You may be charged an annual fee but if used frequently you can get a free airline ticket.
4. Look for partners that offer miles for your frequent flier program. Find airlines which are compatible.
5. Sign up for email promotions and use them to earn bonus miles. You will get email invitations to take surveys to try out new products which helps you earn bonus miles.
6. Sign up for dining rewards.
7. Open a credit card which is usually free the first year. Make sure you meet the minimum spending requirements. After your miles post plan your next trip. This method works best when you use the miles quickly. You can cancel the card after the first year to avoid the fee charged the second year.
8. Purchase layover flights instead of non-stop flights.

10 Ways to Search for a Secured Credit Card

1. APR – can have a standard or introductory rate. Can range from 7.90% to 49.9%, average ranges from 9.72% to 22%.

2. Annual fees - average fee is $40 per year

3. Minimum deposit – average deposit required is $300

4. Maximum deposit - amount deposited may depend on consumers annual income and line of credit desired, average is $10,000

5. Red Flags - look for low interest rates and fees, beware of scams, reporting to the credit bureaus – Experian, Equifax, and TransUnion, deposits, avoid cards with high fees and high interest rates, avoid cards that use your security deposit, income and age restrictions, if the card has a grace period, ask if the card is reported as a secured credit card on your credit report – this may affect future approvals for credit

6. Requirements – requires a savings or checking account with the bank, credit limit is 50-100% of the deposit, for savings accounts the limit can range from $300 to thousands of dollars, money is deposited into a savings account or CD, offer same features as an unsecured credit card

7. Earn interest – if it is a bank card they may pay interest on your deposit, the interest rate varies from 2 to 6.17%, if you deposit more than the minimum or are required to make a high deposit - it is to your advantage to ensure you earn interest on the money

8. Deposit Refund – if application is denied, refund is used to pay outstanding balance and any money left over is mailed to the consumer, may be charged penalty for early cancellation

9. Additional fees – application fee, processing fee, annual fee, finance charge, the application fee may be non-refundable depending on the company, cash advance fees, over-the-limit fees, non-sufficient fund fees, accessing account information, exceeding maximum number of transactions per month

10. Conversion – the account is not touched unless you make a late payment, after making payments on time for at least a year you may be able to qualify for an unsecured credit card, ask if your card can be converted to a unsecured credit card, account may be closed by bank if the account is seriously delinquent

How to Save Money with iPhone Apps

The Apple iPhone prices start at $199 and can range up to $499 depending on the plan, memory and features selected. Verizon and A&T now offer the iPhone. The iPhone offers over 350,000 applications some of which are free. The iPhone provides email and internet services, iTunes, and is very easy to use. It allows for multitasking. It also provides a camera, Wi-Fi, video streaming and an iPod. It can sync with pc and mac email. It also has sensors to save on battery power. If you are an iPhone owner here are 8 applications that can help you save money.

1. Quicken – A free application that helps you manage your finances, track financial goals and monitor your account activity.

2. Billminder – A $1.99 application that helps you track bills, listing due dates. Your data can be exported via email and the application can send notifications to remind you of due dates.

3. Coupon Sherpa – A free application that provides coupons to hundreds of stores online or can be printed. Coupons can be displayed as a scannable bar code to be used at checkout lines. Coupons for local stores can be found by GPS location. You can get daily updates by subscribing to their newsletter.

4. Mint.com – A free application that helps you keep track of your spending by creating a budget. You can setup alerts and track bills using exports from your bank account.

5. Maps - A free application similar to Google Maps. It helps you find stores, restaurants or any address in the United States and can be used with GPS and Wi-Fi.

6. Gas Buddy – A $2.99 application that helps you find the cheapest gas in your area. The tool is really helpful when traveling.

7. Skype – A free application that allows you to make calls over the internet for free. This is especially helpful for those who make long distance international calls. Calls using cell phones or landlines are cheaper than using Verizon or AT&T.

8. Wifi Finder – A free application that allows smartphones owners to access the internet using faster speeds. The application finds all free Wi-Fi hotspots near you using your GPS location. The application has a listing of over 400,000 free hotspots in over 140 countries.

How to Repair Your Credit

You credit is one of the most important aspects of your life and can help you or hurt you during the course of your life. Credit affects many aspects of your life such as applying for a job, applying for a home or apartment, or applying for a personal loan or credit. Some people have been fired from jobs or have not been considered for job vacancies because of their bad credit. If you have bad credit it is never too late to fix it and improve your financial situation. Here are 10 tips to help repair your credit.

1. Order your credit report. Get current on late bills and dispute errors. Dispute errors online or by mail. Provide supporting documentation.
2. Get current. Pay late accounts such as judgments, tax liens, foreclosures, repossessions and collection accounts first. Then pay all other late accounts.
3. Pay down debt. Keep balances at 20% or less of the credit limit. Having credit cards with balances of 50% or more of the limit decreases your credit score.
4. Pay on time. Pay bills at least 7-10 days before the due date to avoid late fees and penalties.
5. New accounts. Opening more than one new account per year will lower your credit score.
6. Avoid closing accounts. Closing accounts that have been open for 2 years or more can decrease your credit score.
7. Negotiate. Setup payment plans to pay down debt if you cannot pay the full amount owed. Stick to the agreement until the account is paid in full.
8. Establish Credit. Open a department store credit card. They usually have the highest interest rates but provide easier approval than bank credit cards. Buy something small and pay the balance in full each month. You can also open a secured credit card account. Ensure the account is reported on your credit report. Get a card with low fees and a low interest rate.
9. Avoid risky solutions. Avoid filing for bankruptcy. Use bankruptcy, debt consolidation, credit repair counseling or debt settlement as a last resort. These are reported on your credit report and lower your credit score.
10. Financial Crisis. If you are currently unable to pay your debts due to unemployment or financial problems request a financial hardship. You can request a reduced monthly payment and reduced interest rate for a period of one year but you must provide supporting documentation.

Financial Help for College Grads

According to the Federal Reserve Bank of San Francisco the unemployment rate for college graduates in 2010 was over 8%. According to EPI’s new paper, The Class of 2010, recent college graduates under age 25 the unemployment rate is 9%. Monster.com has a special section on its website for recent college graduates to help them find jobs. USAjobs.com has federal job listings by college major.

According to Pianalto, recent college graduates don’t experience skill and geographic constraints because they tend to be highly educated and mobile. College graduates have suffered worse in this economy than any other group and are having a hard time finding a job. Trying to find employment during a financial crisis can limit total earning potential over the life of a college graduates’ career.

Another factor college graduates have to worry about is the debt accumulated while in school. If they are unable to find a job, they are also unable to pay their debt. When you find a job focus on paying down debt. Here are some financial tips for recent college graduates to help you reduce debt and improve your financial situation.

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

Auto
1. Skip the car. Don’t buy a 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 your student loans.
2. Pay more than the minimum monthly payment. Your loan accrues the greatest interest in the first 2-3 years of the loan.

Investing (401K's/IRAs )
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. Focus on long term growth. You have to be willing to leave your money untouched for the next 5 to 10 years. Otherwise you won't be able to see the benefits of your money growing.

Spending/Budgeting
1. Create a budget. Make your budget flexible to accommodate for unexpected expenses and include savings goals. Include monthly expenses and debt plus your monthly income. This will help to readily see the areas where you can reduce expenses. Create an emergency fund that is enough savings to pay your bills for at least 9 to 12 months.
2. Reduce your credit card debt. Pay more than the minimum monthly payment.

Managing Credit Card Debt
1. Stop spending. Don't spend money you don't have. This will result in your owing more money. Use your credit card for emergencies only.
2. Setup a payment plan. Setup a payment plan with each of your creditors to pay off your debts. Identify any terms and negotiations you would like to make and stick to the terms.

Credit
1. Order a copy of your credit reports at annualcreditreport.com and fix any errors.
2. Get current on any delinquent accounts.

Financial Planning
1. Use a broker or financial advisor to setup your retirement account.
2. Buy insurance. Buy health, life, disability insurance.

NFL Players are Just Like Us When It Comes to Money

Many NFL players go from a low to middle class lifestyle to upper or wealthy lifestyle in an instant and are not taught how to manage their finances and are not sure who they should or should not trust. Many NFL players are taken advantage of because of their financial status. In other instances they succumb to guilt from family and friends to take care of them, peer pressure, impulse shopping, unable to say no to those asking for money, living above their means, trying to impress others, being overcharged, or bad investments which causes them to lose their homes, have their cars repossessed or file for bankruptcy due to their bad spending habits and poor financial choices.

Many players buy things that have no value and have very little assets. Some forget to pay taxes, don’t keep track of their finances, make bad investments, get caught up in scams and lack basic business knowledge. This lack of financial experience and financial literacy education causes NFL players to buy things they can’t afford and try to portray a certain image that is difficult to live up to.

Approximately 40% of NFL players end up bankrupt after retirement. According to MSNBC approximately 380 players of the total 1,700 players live paycheck to paycheck. The average rookie salary is $320,000. When players get paid, after they pay taxes, pay their agent, publicists, accountants, lawyers and others on their payroll, pay for their lavish lifestyle with a home, multiple cars, jewelry, clothing, helping family and friends they have very little left.

Some NFL players are borrowing money from friends due to the lockout. Some players are getting payday loans called “lockout loans” provided by lending agents. Lockout loans for more than $60,000 can have interest rates as high as 36%. The NFL Players Association in advance of the lockout advised players to save at least 3 game checks and find additional ways to make money but many did not follow this advice. The NFL Players Association also provides financial seminars and classes for players who do not heed the advice provided or may not understand the advice provided.

Many players get caught up in the media frenzy and hype and want to give the appearance that they are wealthy when some are just one paycheck away from bankruptcy. Some players retire and don’t realize they are in financial ruin and need help until they retire.

Many players feel guilty by pressure from family and friends to take care of them financially which can cause a heavy financial strain on players. Family and friends see players on television and don’t realize how many expenses players have each month due to their lifestyle.

Many rookie players try to keep up with the spending habits of some of the veteran players and end up filing bankruptcy or foreclosure on their homes. In many instances players are taken advantage of by lawyers, accountants, agents and others who steal or do not keep their clients informed about their spending habits. In other cases, clients are advised about their poor spending habits but continue to spend until all their money is gone. The NFL Players association, lawyers, accountants, publicists and all who are on the payroll of the players as well as the players themselves are to blame.

My advice to all NFL players, read all books written by Warren Buffet who has lived in the same house for 50 years, drives himself everywhere, does not have security or a bodyguard, never travels by private jet, does not socialize with high society, makes popcorn and watches television, does not carry a cell phone, does not have a computer on his desk, buys clothes from the department store and is an expert in managing his money. You are experts when playing on the field, now it is time to be experts in managing your money – you owe it to yourself.

You Can Run But You Can't Hide - They Will Find You

Technology has allowed creditors, debt collectors and some state taxing authorities the ability to search for consumers on the internet use social media networks such as Facebook, Myspace,Twitter, Linkedin and other sites to find consumers. This seems extreme but it is legal.

According to the Fair Debt Practices Collection Act, debt collectors can contact your family and friends to find your location or get other personal information such as your address, email address or phone number. If you posted your contact information including your current employer on your social media profile you may soon be getting emails, phone calls or visits from your debt collectors. What if a debt collector contacted someone who is listed as a friend on your social media profile? How embarrassing would that be? With the frequent consumer data breaches and lack of strong security protections on Facebook and other social media profiles it is not too hard to find anyone these days.

If you use social media networks and are in debt, you presence on them can increase your chances of your creditors and debt collectors finding you. The IRS has not confirmed whether they use social media networks to find taxpayers who owe back taxes but I assume they probably do. However, tax agents cannot friend a consumer who owes back taxes on a social media site but that probably doesn’t stop them from doing it. Here are some ways you can be found on the internet:

1. Internet search engines
2. Motor vehicle records
3. Chat rooms and forums
4. Social media networks
5. Employment records
6. Tax records
7. Bank records
8. Public inquiries at local businesses such as groceries stories, barbershops, church meetings, social and civic meetings, etc.
9. Posts you made about an article or video or post you made on a website

Contact your creditors and debt collectors before they contact you to setup a payment plan or request a financial hardship. Follow-up with a letter confirming the agreement and stick to the agreement. It is better to be safe than sorry.

How to Pay for Gas and Everything Else

The national average price of regular gas was $3.91 last week. The all-time record high was in July 2008 at $4.11 a gallon. I predict that gas will reach $5 a gallon by the end of the summer. Some states are already paying more than $4 a gallon for regular gas such as Alaska ($4.20), California ($4.23), Connecticut ($4.20), New York ($4.12) and the average price in the District of Columbia is $4.11. If gas prices continue to soar this will cause major financial problems for many Americans.

When gas prices soared in 2008 Americans protested and voiced their concerns. Does any care that gas prices are high or it is just me? I understand the history and fundamental conditions that cause gas prices to rise but does that make it right. Americans are still trying to recover from the effects of the recession in 2008. Approximately 1,000,000 Americans filed for personal bankruptcy in 2010. Many more Americans are living paycheck to paycheck.

The cost of gas has crimpled many Americans. For SUV and truck owners getting gas can be as expensive as a car payment. Here are 15 tips to help save money on gas which will free up money to help pay for other monthly expenses:

1. Compare Prices. Comparison shop by using sites such as gasbuddy.com to find the cheapest gas price in your area.
2. Keep your trunk empty. Remove heavy and unnecessary items from your trunk. Traveling with a lighter load helps improve your gas mileage.
3. Revving. Avoid revving or idling you engine over 30 seconds. Avoid waiting in long drive-thru lines.
4. Driving. Drive the speed limit and accelerate gradually. This reduces the amount of gas needed.
5. AC. Limit using the a/c, roll down the car windows to get air and save on gas.
6. Regular maintenance. Perform regular maintenance on your car at the scheduled intervals, make sure you get regular tune-ups, oil changes, check tire pressure, air filters, and check your tires for wear. Don’t ignore the check engine light. This will improve gas mileage and save you money in the future.
7. Getting gas. Fill your gas tank up early in the morning or in the evening when it’s cooler to reduce evaporation. Avoid topping off. epa.gov/air/actions/drive_wise.html.
8. Skip the fancy tires. When your fancy tires wear out buy the standard tires that were on the car when you purchased it. This will improve gas mileage. The standard tires also provide a better ride especially on the highway.
9. Carpool. Offer to pick up co-workers or friends who work near your job. Make sure you charge enough money to cover the increasing costs of gas and inform your carpool riders that the price may increase as gas costs increase.
10. Prepaid gas card. Purchase a prepaid gas card. Some prepaid gas cards may have an expiration date and/or inactivity fees but depends on the company. Chevron, Texaco, Shell and BP prepaid gas cards do not have an expiration date and do not charge inactivity fees. You can use the site mygallons.com to purchase a prepaid gas card at a fixed price.
11. Downgrade. Trade in your expensive car for a cheaper car or get a more fuel efficient car. This will save you money which can be used to pay down debt, pay for necessary household expenses or save for an emergency fund.
12. Combine Trips. If possible combine nearby trips on the same day to reduce gas usage.
13. Businesses and fleet managers can comparison shop and use fuel banks to save money on gas at www.fuelbank.com. Use the savings calculator to see how much money you save using a fuel bank.
14. Protest. Write your congressman and the White House and demand lower gas prices. Also, write the major oil companies such as BP, Shell, Sunoco, Texaco, Chevron and ExxonMobil and demand they lower their gas prices.
15. Reduce spending in other areas to make sure you have enough to pay for rising gas costs.

How to Get Into Debt

According to the National Endowment for Financial Education Americans are saving less than they were 2009 are have recently started spending more. According to the Federal Reserve of Boston, the average unpaid credit card balance was $3,389. Approximately 56% of consumers carried an unpaid balance in the past 12 months in 2010. Many Americans have gone into debt and have not been able to save money because of financial crises such as unemployment, salary reduction of sickness. However, others have gone into debt simply because they do not know how to manage their money.

Money habits are usually inherited from parents or family members. If you were not taught how to manage your money while growing up or did not see good example of money managing, chances are you will have bad credit at least once in your Iifetime. Here are some ways to get in debt which increases your chances experiencing a financial crisis and having bad credit.

1. Commit a Crime
2. Spend more than you have
3. Use credit cards for everyday purchases
4. Save less than 20% of your total monthly income
5. Have little or no retirement savings
6. Paying more than 30% of your total monthly income towards debt excluding mortgage or rent
7. Making poor financial decisions
8. Not getting professional financial advice
9. Succumbing to peer pressure or impulse shopping
10. Making excuses for bad behavior or spending habits
11. Blaming others for your bad habits
12. Leasing a car
13. Upgrading a large purchase (car, home, etc.)
14. Having excess (50 pairs of shoes, multiple purse in the same color, clothing or purses that cost more than $50 each)
15. Co-signing for a loan
16. Loaning money to friends and family often
17. Gambling
18. Buying rent-to-own furniture
19. Paying bills late
20. Throwing away receipts and not balancing your checkbook
21. Not verifying your monthly financial statements
22. Repeating the same financial mistakes
23. Buy things you don’t need

Short Term Savings Options

In today’s market there are many options to save money. Due to the recession Americans have learned the hard way that you have to save no matter what your financial situation. There are tons or products available to save money at banks, financial institutions and online. Here are some benefits of using basic products to achieve your short financial goals if you are just starting out as a saver or have a low savings account balance.

Checking Accounts
• Can be used to create achieve financial goals if the account earns interest such as online checking accounts with ING, Emigrant Direct or HSBC
• Can transfer money between accounts with no fees and provide you quick access to your money when needed
• Can be used to achieve short-term goals such as paying down debt, saving for a vacation or doing home repairs
• Can be used to create an emergency fund with 9-12 months of monthly expenses
• Online checking accounts helps you plan in advance since most take 2-5 business days to transfer money from accounts

Savings Accounts
• Have lower interest rates which can vary
• Can be used for short-term goals or to cover unexpected expenses such as car repairs, home maintenance, etc.
• Earn higher interest than regular checking accounts but earn less interest than bonds and CD’s
• Online savings accounts such as ING Direct of HBSC have higher interest rates
• Online savings accounts helps you plan in advance since most take 2-5 business days to transfer money from accounts

Money Market Account
• Can be used as to setup an emergency fund or for short or long term goals such as saving for a down-payment for a home, purchasing a car or starting a business
• Have restrictions on how often you can access the money
• May earn higher interest rates than traditional savings accounts
• Require much higher minimum balances to avoid maintenance fees usually $2,500 and up
• Can write checks
• Interest earned by investing in the stock market so you can lose money

CDs
• Should be kept for one year or less
• Can be used to start a savings account if you don’t need to access the money for a while
• Can transfer the money later to another savings product to earn more money
• Should only be used for short-term financial goals
• Don’t lose money
• Interest rates are fixed and are higher than traditional savings accounts
• Have to keep the money until the CD matures otherwise you will pay a penalty
• Terms can range from 3 months to 5 years

Traditional Bonds
• Provide tax advantages
• Can be used for long term goals to pay for a college education
• Not the best product for saving money
• Should be used in addition to other savings products
• Interest earned may be free from federal taxes if income limits are not exceeded when the bond is cashed
• Provides a lower interest rate than other savings products
• Interest earned is exempt from state and local taxes
• Money cannot be accessed until bond matures
• Interest rates vary based on the market rate

Are You A Victim of the Instant Grati Syndrome

As a baby when you cried your mother or father came running to take care of you. As a toddler when you cried your parents hugged or talked to you until you stopped. As a teenager when you wanted something you talked really nice and sweet to your parents to get it. Throughout your life you may have received gratification instantly so as an adult it is only natural for you to believe that you should continue to receive this treatment. Unfortunately, this attitude affects every aspect of your life even your spending habits.

It can be difficult to resist the temptation of the instant gratification culture of America which I call the "instant grati factor". Advertisers make it easy for consumers to get everything instantly by creating instant cereal, instant coffee, instant meals, instant messaging, instant credit card approval, online shopping, and credit and debit card purchases at most stores and businesses. I have labeled this behavior as the "instant gratification syndrome" or "instant grati syndrome". To determine if you are a victim of "instant grati syndrome" ask yourself the following questions:

1. Do you buy a new outfit every time you go to an event or gathering?
2. Do you go shopping with money already set aside to pay a bill?
3. If you see an item online or in the store do you buy it immediately?
4. Do you buy an item even if you don't need the item or the item is not in your size?
5. Do you buy an item with your credit card even though you know you don't have the money to pay the bill when it arrives?
6. Do you get upset or defensive when someone questions your poor spending habits?
7. Do you rationalize your poor spending habits by saying things like "I work hard I deserve it", "Why can't I have it", "You are not my father, I can buy whatever I want", "I just had to have it", "I don't have to answer to you", "I want it now", or "I can buy it with my credit card"?
8. Is your home filled with unused items you purchased or items that still have the tags on them?
9. Do you hide items you have purchased from your spouse, children or significant other?

If you answered yes to any of these questions you are a victim of the "instant grati syndrome". Here are 6 ways to avoid the "Instant Grati Syndrome:"

1. Make being debt free your ultimate goal
2. Stop listening to the instant gratification messages from family, friends and advertisements
3. Live your life like an investor
4. Surround yourself with people who are investors or people who are in a better financial situation
5. Enjoy the little things in life
6. Stop being depressed
7. Live like the rich who live like the poor

Embrace the values of your grandparents or great-granparents by working hard and saving your money to buy something. So the next time you buy something with a credit card ask yourself, am I a victim of the "instant grati" syndrome?

Savings Options for Short Term Goals

In today’s market there are many options to save money. Due to the recession Americans have learned the hard way that they have to save no matter what their financial situation. There are tons or products available to save money. Here are some benefits of using basic products to achieve short goals.

Checking Accounts
• Can be used to create achieve financial goals if the account earns interest such as online checking accounts with ING, Emigrant Direct or HSBC
• Can transfer money between accounts with no fees and provide you quick access to your money when needed
• Can be used to achieve short-term goals such as paying down debt, saving for a vacation or doing home repairs
• Can be used to create an emergency fund with 9-12 months of monthly expenses
• Online checking accounts helps you plan in advance since most take 2-5 business days to transfer money from accounts

Savings Accounts
• Have lower interest rates which can vary
• Can be used for short-term goals or to cover unexpected expenses such as car repairs, home maintenance, etc.
• Earn higher interest than regular checking accounts but earn less interest than bonds and CD’s
• Online savings accounts such as ING Direct of HBSC have higher interest rates
• Online savings accounts helps you plan in advance since most take 2-5 business days to transfer money from accounts

Money Market Account
• Can be used as to setup an emergency fund or for short or long term goals such as saving for a down-payment for a home, purchasing a car or starting a business
• Have restrictions on how often you can access the money
• May earn higher interest rates than traditional savings accounts
• Require much higher minimum balances to avoid maintenance fees usually $2,500 and up
• Can write checks
• Interest earned by investing in the stock market so you can lose money

CDs
• Should be kept for one year or less
• Can be used to start a savings account if you don’t need to access the money for a while
• Can transfer the money later to another savings product to earn more money
• Should only be used for short-term financial goals
• Don’t lose money
• Interest rates are fixed and are higher than traditional savings accounts
• Have to keep the money until the CD matures otherwise you will pay a penalty
• Terms can range from 3 months to 5 years

Traditional Bonds
• Provide tax advantages
• Can be used for long term goals to pay for a college education
• Not the best product for saving money
• Should be used in addition to other savings products
• Interest earned may be free from federal taxes if income limits are not exceeded when the bond is cashed
• Provides a lower interest rate than other savings products
• Interest earned is exempt from state and local taxes
• Money cannot be accessed until bond matures
• Interest rates vary based on the market rate

Are Smart Phones As Safe as Computers

I must admit, I was not a supporter of smart phones. I was quite happy with my cell phone that I only used to make phone calls or send a few texts. Then, my cell phone died and I was forced to get a new one. I got a new one for personal use then decided to get a smart phone for business use. I went shopping and got excited at a sale that offered me a free phone with access to the internet, texting options, applications, fun games, video recording, a camera, the ability to access my email and more. I was hooked. Now I am a big fan of smart phones and because of that I never let my smart phone out of my sight.

I don’t make transactions on my smart phone, I don’t text personal information, SSN, addresses or account numbers on my smart phones and I don’t fill out application forms, i.e. contests, event registrations, etc. on my smart phone. Some smart phones owners believe they can use their smart phone just like their computer, unfortunately you can’t. Many smart phones have high security risks such as the Android and iPhone. In addition, you don’t how the company stores the data, where the data is stored, if the data is encrypted, If the data is backed up on a regular basis, how long the data is stored, etc.

According to a Trend Micro Inc. survey in 2009, only 23% of smartphone owners use the security software installed on the devices. If a smart phone is lost or stolen, sold, repaired, recycled, or has a removable SIM card data can be quickly exposed without the previous owners’ knowledge. If you store personal information on your smart phone your life could be ruined.

Smart phones are also exposed to hackers, worms, viruses, trojans and malware just like computers. Most smart phone owners don’t bother backing up their data or downloading the latest software. Here are 9 common risks with smart phones to be aware of.

1. Password. Not creating a password for your phone allows anyone to pick up your phone and access your texts, emails, calendar, and other personal information. When entering your password make sure no one is watching you. Create a password with letters and numbers with no repeat values.
2. Inactivity/Lock. Enable the auto lock feature on your phone to prevent someone from accessing information on your phone. You can also set your phone to lock after short periods of inactivity.
3. Encryption. Contact your vendor to find out if the company uses encryption to protect customer data. Most major smart phones vendors use encryption.
4. Data. Don’t store or enter personal information on your smart phone. Don’t make purchases on your smart phones. Even if the website you are using is secure, it doesn’t mean you smart phone is secure.
5. Software. Check at least once month to ensure your smart phone has the latest version of software and patches.
6. Storage. Delete old emails and text messages at least once a week from your smart phone even if you have paid for ample storage to minimize security breaches.
7. Shut down. Cut your phone off each night to reduce exposure to security risks.
8. Downloading. Downloading applications from unknown websites increases your exposure to worms, viruses and malware.
9. Texting. Texting your smart phone number to get ring tones, advertisements, alerts or notifications or to vote also increases your exposure to security risks as well as telemarketer advertisements. Your personal information is sold to telemarketers including your smart phone number.

What to Do If Your Credit Card is Hijacked

I bank with a credit union and got a call yesterday evening from the Security Department. The representative stated that it looks like some unusual charges were on my account. He verified with me that the charges were not mine. Someone had gotten my credit card number and had a field day. My credit card is still in my possession and the last purchase I made was two ½ weeks ago.

I never shop at unknown websites and don’t make a lot of online purchases. I always shop at well-known sites such as department stores, Amazon, etc. I was shocked that someone compromised my card because I only use my card to make occasional online purchases, pay for hotel reservations or airfare. I prefer to use my credit card to make these purchases in the event that my check card is compromised I won’t lose cash. Protect your personal information as you would your life. If you are a victim of identity theft here are 8 tips to minimize damage.

1. Report identity theft immediately. You only have a limited amount of time to report the incident, usually a few days.
2. Contact Equifax, Experian and TransUnion and tell them you were a victim of identity theft. They will provide you with a free copy of your credit reports. Dispute any accounts that are not yours. Place a fraud alert on your credit reports if the fraud happened within the past 12 months. You will get an initial alert placed for 90 days then call back to ask for an extended alert which can last for up to 7 years.
3. File a police report within a few days of becoming aware of the identity theft. This will be helpful when contacting Experian, Equifax and TransUnion as proof of your claim of identity theft.
4. File a complaint with the Better Business Bureau, your state's Consumer Affairs or Attorney General's Office and Postal Service.
5. File a postal alert with the post office which can be filed online at usps.com.
6. Request a copy of the investigation findings from the police department and the company where the fraud occurred. Ask the company to send you a letter stating you were a victim of identity theft and send a copy send to Equifax, Experian and TransUnion.
7. File a fraud claim with the loss mitigation department where the fraud occurred (ask for signature verification which is a quicker way to resolve the issue). You can also contact the Customer Service department and have them put a flag on your account. Sometimes different departments do not exchange information.
8. File an identity theft complaint with the Federal Trade Commission online at ftc.gov.

Here are 6 tips to prevent identity theft.

1. Reduce usage of online banking, pay for more items with cash and use your debit/check card less often. It is easier to get money credited back to your account when using a credit card than when using a debit/check card.
2. Don't enter or store your personal information on your cell phones, blackberry, or in an unsecure place such as work, your purse or wallet. Don’t text your credit card, financial account numbers or SSN. Don't enter your personal information in contests or on the internet. Don’t make purchases using your blackberry or cell phone.
3. If you become a victim of identity theft due to a company security breach, consider closing your account and take your business to another company.
4. Check your bank statements and accounts online or over the phone at least once a week to make sure your account has not compromised.
5. Shred all financial statements and documents that contain your personal information.
6. Create a password on your bank checking and savings account when performing transactions in a branch and when calling the automated number or when calling customer service to verify your identity to prevent others from accessing your account.

Buying Groceries With No Money

Experiencing financial crises can make people do crazy things. Some people are in denial about the financial situation, some people go shopping to make themselves feel better, others find comfort in various activities such as eating, drinking, etc. One thing I have noticed and got additional feedback from grocery store managers is customers who try to buy groceries with no money. This seems to be a big problem that many grocery stores and other stores face – customers who pick up items and get to the checkout line with no money or not enough money to pay for the items.

Going to the grocery store and getting a basket full of groceries when you don’t have enough money is a waste of time and shows a lack of common sense. Grocery stores are in business to make money, I haven’t heard of any grocery store giving away groceries.

Getting a basket full of groceries and not having money to pay for them is a waste the store’s time, it wastes your time, causes you unnecessary frustration and embarrassment and angers the customers in line behind you. Due to your actions, the store now has several voids on their financial records and sees the voids as a loss. To make up for losses the store raises prices so when customers go to the store the next week or two, they will see higher prices.

Many stores have websites where you can go online to see how much items costs. If you don’t have access to a computer you can go to the store and write down the prices of the items you need to buy. The next time you have to get groceries take a calculator or pen and paper with you and tally up the items you put in your basket so that you know approximately how much your bill will be before you get to the checkout line. Here are 15 tips for those who don’t have enough money to buy groceries.

1. Budget. Create a budget and include groceries in your budget. This will help save money on and ensure that your money goes the furthest to buy wisely and healthy items for your family.
2. Don’t steal. Going to jail and having a criminal record will only make your situation worse.
3. Food bank. Go to a local food bank in your area if you can’t afford to buy any groceries.
4. Use coupons. Use coupons found in your local newspaper or use online sites such as groupon.com, coupons.com, couponmom.com to find coupons. Shop at stores that double coupons to save even more money.
5. Shopping List. Make a shopping list of the things you absolutely need. Make a list of things you would like. Buy all the items you need first and if you have money left over use that to buy some of the things you would like to have. This also prevents impulse shopping.
6. Hungry. Don’t go shopping when you are hungry; you tend to buy more items than you normally would or tend to buy more unhealthy items.
7. Network. Get to know your grocery store employees and managers. Ask them when they will be having sales and what days are the best to shop for sales.
8. Shopping. Comparison shop to see which stores have the best sale each week and shop at that store for the items you need. Don’t spend a lot of time and gas shopping at multiple stores to find bargains especially with the increasing gas prices.
9. Generic. Buy generic instead of name brand to save money.
10. Family. If you have a family or 3 or more buying in bulk saves you money but if you are single or a single parent with only one child buying in bulk may not always be the best option.
11. Plan Meals. Plan you meals for the week and shop according to your meals. This helps you stay focused and prevents you spending more money than you should.
12. Stay focused. Stay focused when shopping and stick to your list. Don’t go down every aisle because this can be tempting and don’t buy items just because they are on sale if they are not on your list.
13. Buy in season. Buy fruits and vegetables that are in season. Out of season items cost more.
14. Frozen. Frozen vegetables are a good option if you can’t buy in season vegetables.
15. Kids. Don’t let your kids influence you to buy items that are not on your list. Explain to them that you are at the store to buy certain items and you are not going to deviate from that.

Uncommon Savings Tips

1. When you receive items purchased keep the boxes and reuse them to ship gifts or other items.
2. Reuse both sides of printer or fax paper.
3. Sew clothes for yourself and your family.
4. Crochet pillows, quilts, blankets, sweaters, socks and other items to stay warm.
5. Make jewelry which you can give as gifts.
6. If you are good with arts and crafts make things such as: gloves, pottery, candles, candle holders, envelopes, etc. and give as gifts.
7. Camp out in your backyard in a tent instead of going camping.
8. Participate in clinical research trials to get free medication and earn some extra money.
9. Donate blood to get extra money.
10. Go to a training school for services: beauty school, barber school, dental school or veterinary school to save money on hair care, dental care and pet care costs.
11. Go to a training school or college in less than the normal time, i.e. finish college in 3 years, finish a graduate degree in 1 ½ years, etc.
12. Get sponsors to remodel your home, car, sponsor your family reunion, high reunion or wedding.
13. Make your own food or drinks such as ice cream, soda, bread, beer.
14. If giving flowers as a gift, use flowers from weddings, funerals or other special events.
15. Sell your sperm.
16. Sell your hair to cancer patients.
17. Donate your eggs to women who have problems conceiving.
18. Train you cat to use the toilet like in the movie the Meet the Fockers.
19. Potty train babies at age one or younger.

Rapid Refund Has a Cousin

Rapid Refunds have been called many names such as Refund Anticipation Loan, RALS and now Tax Refund Advance. The Office of Comptroller of the Currency has blocked Hallmark, H&R Block, McAnnally & Company and HSBC from offering rapid refunds because the IRS was unable to determine if a tax filer was credit worthy to receive a rapid refund loan. In the past tax filers who owed taxes were still able to get a refund. The glitch was only found after the rapid refund was received by the tax filer. Chase (JP Chase Morgan) stopped offering rapid refunds in 2010.

In place of rapid refunds, H&R Block now offers RACs, Refund Anticipation Checks that provides tax filers with a refund checks in 8 to 15 days for refund amounts up to $9,999. You don’t pay any interest but the fee is deducted from your refund. You can get the money deposited in your bank account or have a check written in the refund amount. Getting a check will cost you an additional fee. Rapid refunds have very high interest rates starting around 40% up to 500% or more. Tax preparation companies don’t guarantee that you will get your money before the normal wait time from the IRS.

You can save yourself a fee by just being patient and waiting the normal wait time. Jackson Hewitt still offers rapid refunds for refund amounts up to $1,500. Liberty Tax still offers rapid refunds in additional to several accounting firms.

The IRS is taking steps to prevent more tax filers from using rapid refunds by processing tax returns quicker in real time so refunds can be received in 2 to 3 days starting next year. Here are 5 tips to get your tax refund faster and save money.

1. File early. If you expect to get a refund file your taxes as soon as you get your W-2. Early filers receive their refund quicker.
2. Assistance. Use a tax preparation software or get professional assistance from a licensed tax preparer or accountant to prepare your taxes to minimize getting audited or having errors on your tax returns. Many tax preparation software programs now guarantee that you will not be audited and that your tax returns are correct.
3. Direct Deposit. Have your tax refund deposited in your bank account to reduce processing time.
4. File Online. File your tax online by using a free tax preparation site with the IRS or a tax preparation software such as Turbo Tax or Tax Cut that can file your taxes electronically to reduce processing time. You can get your check within 14 days from the IRS or your local state taxing agency.
5. Deposit. Deposit your tax refund check into your bank account and skip using a check cashing store or liquor store to cash your check.