We all fall for advertising, whether or not we would like to admit it. Of course, many of my friends and family scoff at print ads that make promises like “100 percent satisfaction guaranteed.” However, whenever we make daily purchases, we have a plurality of choice, and sometimes I wonder to what extent advertising pervades my decisions.
In terms of budgeting, I believe it’s very important to analyze how we go about making purchasing decisions when it comes to personal, pedestrian products that we buy at a grocery store or a convenient store. While we do tend to do much research when we are preparing ourselves to make large purchases–for example, a car or television–we may not even think twice about the products we buy monthly, even though when you really think about it, these smaller purchases often amount to a greater portion of our budget, when taken in aggregate, than do luxury, once-in-a-blue-moon items.
The thing about personal products at the grocery store is that while there are hundreds of different brands for essentially one item (think deodorant, toothpaste, cereal, etc.) they all essentially have the same functionality and effectiveness. As someone who is looking to spend and save wisely, the best way to go about picking products is to establish a criteria and stick to it. Here’s a suggested route:
1. What are my actual preferences (not preferences ads say that I must have)?
Everyone has preferences, and I think the best way to disentangle yourself from the pseudo-preferences that brands promote is to stop and think, what is it precisely about any product that I value? Preferences like specific flavors or scents are an example.
2. What is the cheapest product that adheres to my preferences?
This one is kind of tricky simply because sometimes the cheapest product is not necessarily the most cost-effective. What I do is start with the least expensive product that meets the above criteria, and then I determine if the next cheapest has anything of value to me specifically (better tasting or longer-lasting) that the cheapest one doesn’t.
3. What type of labeling draws my attention?
A recent study undertaken by Harvard School researchers found that many are drawn to advertising that perceives its products as the “underdog”. After reading the study, I found that I, too, fall for this sort of labeling. Always ask yourself about the product’s inherent value (which can be determined by trying out the product or reading reviews online) instead of its purported value.
These are just a few things to think about when it comes to advertising, but above all, whenever purchasing seemingly miniscule, everyday products, always be aware of what you are buying and why you are buying it at the moment of purchase. Ask yourself, do I really need this? Thinking deeply about purchases during routine shopping trips can, in the final analysis, help save more money than you would imagine.
About the Author:
This guest post is contributed by Lauren Bailey, who writes on the topics of online colleges. She welcomes your comments at her email Id: blauren99 @gmail.com.
With the current state of economy – not only in the US, but also in other countries – the average families are left in bad financial situations and force them to go frugal. How bad is it in the US?
In the US, the average American families are in dire danger – they have limited savings in such a way that there will be no room for error. Alas, things happen, and the bad economy amplifies the effects.
Check out this infographics from VisualEconomics.com on the American Family’s financial turmoil.
The big picture of average American family:
Pretty bleak picture, but that’s the reality.
If you are one of the average American, or in similar situation in wherever you live right now, there is still hope – and the hope should NOT be put on the Government.
Take action – stop depending on the Authority and start controlling your financial future. Let the Government do their own thing, and you do your own thing. This way, everybody does his/her own role in improving the personal finance, and eventually the nation’s economy.
The best tip I can give is for you to increase your financial IQ. You don’t need to go to college for this; just read financial publications, even if it’s a back issue sold before or even thrown away by others. Also learn to use the Internet, as knowledge is at your finger tips – search for ways to be better financially and you’ll be presented a wealth of information – mostly available for free. Find mentors – don’t you know that there are people ready to help you out without asking for something in return?
Learn, learn, learn – there’s no such thing as, “well, finance is not my thing, and getting rich is only a dream.” Well, keep on dreaming, and finance is actually not as difficult as you might think.
I heard stories of people having problems in school (being dyslexic, for example) succeed in their financial life because of they learn from others. Copy from them – personal finance is not a rocket science.
Most, if not all people dream about living financially independence and be able to do whatever they want with their nice amount of wealth. Unfortunately, only a few select who can truly achieve that. One of the main keys that will make or break in wealth building is your spending habits.
Also, guess what – you don’t need a large amount of income to be financially independence – good money management can leave you millions of dollar when you retire – enough to fund your retirement to the beach!
Obviously, bad spending habits won’t get you far with your financial planning. Fortunately, spending habits can be transformed if you have the discipline and willingness to watch your spending closely.
To help you out, here are 5 tips to help you transform your daily lifestyle for a better financial planning:
1. Less driving, more walking and riding bicycle.
You might laugh at this idea, but you will become healthier financially and physically. Your savings from gasoline and parking fees alone can be as much as a few thousand dollars a year – think about it.
2. Make and bring your own coffee and sandwiches.
When commuting for work or for fun, stop stopping by and buying those coffee from your favourite coffee shop. A Starbucks coffee can cost equal to more than 5 cups of homemade coffees. Plus, don’t underestimate your coffee-making ability! The right coffee can easily make you a better tasting coffee than Starbucks’ and the likes. The same thing also applies to sandwiches and other easy-to-prepare-at-home food and snacks.
3. Eat at home more often.
In many cases, eating out is one of the major items in your personal finance’s expense column. Eat at home has many benefits – you can save (a lot of) money while improving in your cooking skills – you can even becoming a better cook than those at restaurants!
4. Leave your credit cards at home (or cut them out altogether!)
If you are an impulse shopper who owns multiple credit cards, it’s better to leave your credit cards at home. This is probably against what credit cards are supposedly beneficial for – easy to carry around – but such convenience means it’s easier for you to buy and shop more than you should; this could lead you to a new, devastating problem: credit card debt. You should bring your credit cards whenever you are going to buy something – this will allow you a few seconds to think whether you need the stuff you are going to buy or not. Better yet, cut your credit cards into one to avoid late fees and excessive spending.
5. Going frugal is the way to go.
Well, you should spend on things you really need. When there’s a better substitute, why not go for it? E.g. if your hobby is reading books, you should visit public library instead of buying new books from bookstores – those new titles you want might be available soon at your local public library! Alternatively, if you really want that new book, try shopping on eBay or Amazon to buy used book – chances are, the book condition is still 90-99% at a much lower price tag.
Those 5 ways are great if you can make them your habits – along the way, you should find more ways to ‘fix’ your bad spending habits, and before you know it, you suddenly left a healthy amount of money in your bank. Your next step – investing.
Congratulations – you are one step closer to be financially independent.
A new baby will bring joy to your family, as well as headaches in your personal budgeting. Before your new family member arrives in the midst of your family, you need to start updating your family budgeting, especially in the expenses column.
Here are some tips to help you budget for the arrival:
1. Create a list
List the items you will need for your baby. Ask family members or friends who are new parents to help you make and refine your list.
2. Your baby’s first year
Consider your baby’s need for the first year – furniture (crib, changing table, etc.,) gear (car seat, stroller, baby chair, etc.,) bathroom accessories (diapers, wipes, towels, etc.,) feeding (bottles, pumps, etc.,) and other needs, including yours (diaper bag, etc.)
3. Other caring expenses
Also consider these to fit into your budget: child care, insurances, etc. including a decrease in income if a parent stays at home.
4. Compare prices
By now, you should have a good list of your baby’s need. Your next step would be compare prices. A hint: shop online for massive price cuts!
5. Calculate, review, prioritize and adjust
Add the costs to make a total. From this total, you need to review whether you want to spend the amount or not. Chances are, you will find that you need to take some, less important, items off from the list to cut your spending.
6. Stick to your budget and adjust it along the way
Your next step would be sticking to your budget. Record expenses as they occur and try to balance your budget (if you spend more, subtract the same amount from others in your list; if you spend less, consider it as a reserve for other needs.) You will also need to adjust your budget according to your circumstances.
7. Long term planning
From the first year and beyond, you need to consider other costs, as well, such as toys and educational expenses. Save and invest early – this is the best advice I can give as it has been proven time and time again that saving and investing early will make a huge difference later on.
If you have a bad credit or no credit score, you might already feel the impact – your loan applications (car loans, mortgages, credit cards, etc.) get rejected a bit too often, you are paying too high interest rates, and more.
Believe it or not, there are credit card offers specifically made for people with bad or no credit score – in fact, those credit cards are designed to help you establish your credit history and build your credit score.
Credit cards for bad credit usually come with a small credit limit. If you can make regular payments and avoid past dues at all cost, you can start seeing improvement in your credit score. You are becoming more credit-worthy in the eyes of lenders, and they will be willing to lend you larger amount of loans, as well as reduced interest rates.
But before you decide to apply for a credit card, make sure that you don’t have too many open credit accounts in your credit history. Otherwise, applying a credit card would only worse your credit track record.
First step…
Check your credit score with the three major credit bureaus: Equifax, Experian, and TransUnion. You can get your free credit score once a year – use it wisely to check for errors in your credit history and fix them to allow you to see your “true” credit score. Be sure to limit your credit score request once a year from each of the credit bureaus to avoid penalties in your credit score.
You should use this opportunity to know what your current situation is and use it as a starting point in your credit score building endeavor.
Pick the right card
There are credit card companies offering different type of credit cards – you need to pick the right one for you. If you are a student, a student credit card that requires no co-signer or income proof might be the right one for you. Just be aware that although such credit card is good as your first card, it carries a higher interest rate. You can also access credit cards with rewards and incentives, but always keep in mind that the trade-off for all the benefits you enjoy is higher interest rates.
Whichever credit card you choose, please be sure that it is the right one and the best fit for your personal finance plan.
Dream big, start small
In your credit score building endeavor, you should start small. Consider opening a credit card account and use it at least once a month to purchase items; be sure you have the cash to pay for your purchase. The idea is to use your credit card and repay it on regular basis. Each time you pay for your credit card balance, it will show up on your credit history and will make an impact on your credit score. However, don’t max out your purchase to the card limit, to demonstrate that you are a sensible credit user.
Lenders will also consider the frequency of your payments – this way, using your credit card, for example, once a year and paying off the total balance on a given month will have a miniscule effect on your credit score. Remember, your credit score determined by the last three years of your credit history, and patterns of payment is what lenders want to see from your credit history.
Manage your credit “clutter”
Paying the balance on regular basis is only a part that determines your credit score. You would also want to de-clutter your credit. If you have plenty of open accounts, close those that you don’t use – having too many credit cards are not advisable. Other than easier credit management, reducing your open credit account will increase your eligibility for more benefits, such as a bonus when you are taking a car loan.
It’s understandable that you and I want to get rich in the fastest and simplest way. Regardless how passionate you are with your job, let’s face it – you hate to work from paycheck to paycheck. Let alone building up wealth, some of us are in constant pressure to make ends meet.
Make money online – the Internet is often be a place where high hopes and expectations are put. It is said to be the place where you can get rich quick nice and easy. Well, sorry to disappoint you, but if you are looking for an easy way to make money online, you should re-think why you are trying to make money online in the first place.
As well as other business or money-making endeavor, Internet business also requires hard work. It demands you a lot – much things to learn, going through years of anxiety and frustration, and money to lose (if you decide to invest some in an Internet business.) Then, here’s the most common outcome: people are going out of Internet business, disgruntled, accusing that the whole money making online thing is a scam and a sham.
And before you realize it, you will fall to the prey of the Con Artists and Scammers. Frustrated working on your day job and/or Internet business, you are most likely to fall to these offers: “Are you fed up making little money and living from paycheck to paycheck? Do you hate to work hard? Do you want to get money without all the hassle?” And if you do say “yes” to those questions, congratulations! You are the number one target for the Get Rich Quick Schemes.
When you look for opportunities online, you will immediately flooded with plenty of “getting rich without breaking a sweat” opportunities. You will be entertained with multi-million dollar promises, double-your-money-in-3-days “secrets,” push-button money making method requiring no knowledge guarantees, etc.
Now, before you start to fall to such offers, stop, sit down and think – are those offers realistic? Here’s a question to ask yourself: If it’s darn easy to make such amount of money, why people are still struggling in making enough money to allow them to build wealth and enjoy better lifestyle?
Haven’t you realize that those scammers make money off inexperienced newbies who want to get rich quick? The scammers ARE indeed the ones who make a lot of money fast, not you!
Think logically and be sure about this fact: To most people, getting rich requires a great combination of knowledge, risk management, hard work and window of opportunities (or some called this luck.) Do you home work well – THEN, you will start seeing positive results.
Welcome to the time of the year most people hate – the tax filing season 2010.
Remember, the deadline is on April 15 – and although it’s not a fun thing to think about preparing your taxes for filing, it’s a must-do activity. You still have about 3 weeks to file for your taxes – it’s not too late!
You might be interested to watch the one-minute official tax tips video from the IRS:
If you have a job, your employer will handle your paperwork. All you need to know is your deductions. Taking the standard deduction might cause you to pay too much – often significantly. If you are not sure, consult to your accountant. If you DIY your taxes, you could go to the IRS.gov or TurboTax.com site for tax preparation and filing tips.
If you have a home business, you have to more paperwork to take care and deductions to make. This is a main reason why many home businesses hire an accountant to do the taxes. Hiring one relief some of your tax anxiety – so your CPA fee is well worth it. You can deduct many things for your home business, i.e. business supplies, business travels, etc. You should consult with a tax professional and make sure you keep all your receipts if you are ‘lucky’ enough to be audited.
After you have done your taxes and find out you are getting a quite amount of refund, you need to claim it from the government (you do need the money more than they do! Not doing this means the government is having an interest-free loan.) Next, you need to keep it into savings account (or something similar) and do your best NOT to touch it by any means for any purposes – get a hold of yourself!
Controlling and managing your taxes can save you from future problems. Getting yourself to have a good tax filing habits can avoid you audit problems and help you claiming any deductions occurred. Again, consult with a tax professional to do your tax due diligence well, as well as to get any tax returns that the government owed to you.
Happy tax filing!
Stop! No matter what, don’t join any debt settlement programs before your read this article!
If you are in debt problems and are looking for solutions, you might encounter ads and offers with something similar to this:
“We help you reduce you debt payments up to 70%”
Debt settlement agencies and sites are doing their best to persuade you and me into thinking that debt settlement is a better way to save your money on you debt payments and bills. Firstly, the 70% offers you see seem too good to be true: If those debt settlement companies can do just that, there will be a flock of people with debt problems line up for their service!
There are also agencies and sites claiming that they got your creditor calls covered and bring you peace of mind – all based on your ability to pay your debts. All sounds so easy and affordable – or are they?
One thing for sure, those agencies and sites that are using your desperation in settling your debt to scam you claim that they can see into the future and guarantee you results in 1 or 2 years. My take: bullsh*t. NO ONE can predict the future (I don’t know about gifted people who could see the future, but certainly not debt settlement agencies and sites!)
The thing is, how can they predict? Each time there are changes in the interest rates, in policies, or in a banking institutions merger, for instance, the result is obvious: There are also changes in settlement policies.
Debt settlement scammers are also offering these to clients:
If you are ever to join a debt settlement program, you must do your homework – investigate the companies offering you debt settlement solutions: check their background, Google them, test their free credit counseling service, etc.
Here is one of a select few coming out clean: CuraDebt – many satisfied clients, local legal representation, a clean BBB rating (from 2000) and a knowledgeable staff recommending various programs most suitable for your needs. Speak with a CuraDebt counselor to review details.
Image by Don Hankins.
Because in US there are three important credit bureaus – Equifax, TransUnion, and Experian – it is necessary to verify your credit score on a regular basis from all of the three credit bureaus. A complete credit score monitoring system must include a complete credit information from all the three credit bureau in a way that is easy to read. It must also include the credit scores along with tips for improving it.
The information presented in the report must be presented in a way that it can be compared. Furthermore, it is important to get information, which will help you manage your credit scores and improve your credit situation along with assistance from the ones that have offered you the credit score monitoring.
The information contained in your report will influence lenders to decide if you will get the credit or not. The credit score includes how prompt you are in paying bills, collections information, and bankruptcy. If your report contains errors then it will determine the sum you will pay for your mortgages or car loans. This information will also affect the time in which you might get a job because employers check your credit score when applying to a job. For these several reasons and for others it is important to make sure there is absolutely no mistake in your credit scoring.
The only way you can know if your credit score is correct is to check it regularly. The government gives you the right to get a free credit score from each of the credit bureaus (Equifax, Experian, and TransUnion) every year. You can get your free credit score very quickly by accessing the Web. As an example, Equifax offers free trial to get your FREE 3-Bureau Credit Score of your nationwide credit scores and receive alerts within 24 hours of key changes.
After you obtain your credit score, you have to check it for errors. If there is something wrong in it, you have to contact the credit scoring agency that provided the inaccurate information and ask them to correct it. Add to your demand your address to be easily identified. To sustain your affirmation send them proofs like the copy of the documents that indicate the correct data. Explain to them why you want your correct information to be filled in and ask them remove or correct the false one.
Do you want to get extra money without breaking a sweat? I do. I know you do, too. No, it doesn’t involve anything related to stealing, robbing, scamming or blackmailing 
Rather, it does involve something from your forgotten belongings in the attic.
Do you know what one of the most important stuff you have right now is? You guess it right: your mobile phone. Just admit it – Today, life and work without mobile phone would be misery, if not a disaster. Most likely than not, you are also ‘required’ to upgrade your mobile phone to allow you to be more effective and efficient in doing your work (and socializing.)
One question I should ask you: How many mobile phones do you have at home? Your answer might be one, but I’m not sure there isn’t more. Aren’t you forgetting something? Have you check your drawer, shed, attic or somewhere else in your house where you stash your unwanted belogings (a.k.a. junks)?
You might find this cluttering your house: your old mobile phone(s.) Many, including me, have their old (and obsolete) mobile phones at home. Why? Because throwing them away is such a waste of money. Moreover, throwing them away to the garbage bin can damage the environment and get you into trouble with the laws (not enforced in all places of the world, though.)
Logically, you would want to sell your mobile phone, instead of keep it or throw it away. You could make extra money from selling your old mobile phones. But how do you sell them, and where?
One solution: sell mobile phone online.
There are actually several mobile phone recyclers to where you can sell your old mobile phones. Your problem would be on how to know that the money you receive is the best you can get out of your sales. Finding out is not an easy task, and it could very well be time consuming.
This is where mobile phone comparison sites, such as SellMyMobile.com, step up.
SellMyMobile.com, currently serving the United Kingdom market, allows you to compare and get the best prices for your old mobile phones. You can sell mobile phones on the site easily, following these 4 steps:
Your personal finance endeavor involves managing your life better, aside of the obvious: financial planning. You should find a way to turn any liabilities (yes, your old mobile phones lying around are liabilities!) into something good, in this case, extra cash. In some part of the world, disposing electronics – including mobile phones – require you to pay a certain amount of money – another strong reason why you should sell your old mobile phones.
Do you want something a bit more creative? If so, you can start by collecting old, unused mobile phones from your colleagues, family and friends. You can also get old mobile phones on a dime in garage sales, if you prefer. You can then send your collected mobile phones to SellMyMobile.com to receive some nice amount of money. A great idea, isn’t it? All you need to do is to make sure that there are recyclers accepting the mobile phones model and make you have, otherwise you pile yourself with ‘junk.’
RECEIVE PERSONAL FINANCE TIPS REGULARLY
Receive personal finance tips and advice: via email | via RSS Reader
Twitter
RSS
LinkedIn
BusinessExchange