Don’t Let Summer Scorch your Budget!
Staying on a budget can be difficult, but it seems especially difficult during the summer months. During this time many new expenses, such as paying for summer camp and vacation, pop up and can sometimes have a way of getting you off of your budget. However, there are several things that can be done to combat the temptation to stray.
First, try living on a cash budget. This will allow you to physically see the money leaving your pocket. It also means you won’t be able to rely on your credit or debit cards. In addition, living off of a cash budget will let you see the reality of your expenses, but it doesn’t mean you get to stop logging down your different costs. This means saving your receipts and another good and forgotten habit, balancing your checkbook.
Saving your receipts is an easy way for you to sit down at the end of the day and see if there were any mistakes or improvements made in your spending habits. This daily task also opens the door for conversation with a spouse about what they spent for the day and how they are doing with their personal and mutual financial goals. Remember, not enough conversations about finances are had and that budgeting is a responsibility that requires teamwork.
Balancing a checkbook seems to be a habit that many have lost, especially with the rise of online banking. Though it is good to be always checking your accounts online, sitting down and actually taking the time to do the math and check the numbers yourself lets you see what is coming in and going out of your accounts.
Furthermore, ask yourself if others in your household can participate. If you have older children in your home that have jobs, help them set up a budget as well. Assist them in making goals to reach, such as putting a certain amount of money in their savings account or toward their college fund. Children, no matter what age, follow your example and being involved will only drive the lesson home even more.
Last, prepare for the unexpected. It is never a bad idea to have money in your savings account specifically put aside for an emergency. Everyone can budget and save their receipts, but to be ready when you aren’t sure what might be coming your way is sensible and wise.
To learn more about being financially savvy and to see some surprising statistics, try taking this quiz. And if you have any summer budget tips, share them with other readers here!
Source:
How Stuff Works
Stop Identity Theft so You’re Not the Next Victim
Identity theft can happen quickly but the damage that is left for the victim to clean up is rarely dealt with as fast. Identity theft can happen in a variety of ways with thieves looking to steal debit and credit card information and Social Security numbers. With this information thieves can ruin excellent credit scores, apply for mortgages and even file false medical claims. However, there are ways in which you can prevent identity theft and take action if it happens to you.
Avoiding Theft:
One prevention method is to constantly be checking your bank statements. By keeping tabs on what is being charged or withdrawn, you could easily point out a faulty charge if a thief ever tried to use your account to their benefit. Also, by consistently checking your bank statements it’s easier to freeze the account and maybe receive a refund on any faulty charges rather than having to cancel it altogether. Next, review your credit reports. The three main credit agencies, Equifax, TransUnion and Experian, are required to give you a copy of your credit report, if requested, by law once a year. Another great tip is to use your credit card for online purchases. This is a somewhat safer route because it is not directly linked to your checking and savings accounts like your debit card. Other important and basic prevention tips include shredding documents with personal information and never carrying your Social Security card in your wallet. In addition, be wary of the information you give out online and change your passwords every couple of months.
What if you find that you’ve become a victim?:
First, try not to panic and calmly go over how you were robbed and what account the thief has access to. Was it a faulty charge on your debit or credit card? If so, notify your bank or credit card provider immediately. Let them know the amount of the charge and when it occurred and ask them to freeze your accounts. Next, you will need to notify the one of the three major credit agencies listed above so they can put out a fraud alert. The alert will remain on your credit report for 90 days and the agency will automatically issue you a free updated report. Once you receive the updated report, review it thoroughly for any suspicious activities such as accounts that you didn’t open. Make a report with your local police department and with the Federal Trade Commission. Once the various reports are made, as with other important documents, make copies and file them away in a safe place.
If you experience identity theft in a larger scale there are other steps you may need to take and there is even a way to put out an extended fraud alert that can last up to seven years. In the meantime, be sure to always use the internet wisely and protect your information. In addition, if a scanning device at a gas pump or ATM looks odd or that it may have been tampered with make sure to let the manager or an employee at the establishment know.
If it comes to the point where your identity theft has caused you to go into debt, call the counselors at Debt Helper and ask about the different services they offer that may help lower your debt.
Source:
The New York Times
Top Ten Ways to Spend Less and Get More
Today, families are looking for more ways to save and live the “value lifestyle.” This new behavior is evidenced by the record high coupon redemption rates (9.7 percent in the first quarter of 2010 and sixth consecutive quarter of increased usage, according to NCH Marketing Services, Inc. 1Q 2010 Coupon Market Quarterly Update) and savings trends noted across multiple industry studies and surveys. There is a new norm which includes a permanent shift in how we shop and how we save. Today’s shopper has a keen eye on value that is here to stay.
The average family can save at least $1,000 per year by spending just twenty minutes a week seeking coupons, savings, and deals from a variety of sources. As I meet shoppers and savers across the country, I am impressed by their great savings and ingenuity. How much you save depends on you. Consider these practical tips to spend less and get more:
1. Share savings with a friend: People are passionate about scoring great deals and word-of-mouth is one of the best ways to find deals. What better source than a trusted friend?
2. Seek savings in print and online: Those achieving the greatest savings are clipping print coupons and clicking and printing online coupons. While grocery is the number one category for coupons, they are available across categories from dining to home improvement and everything in between. And be sure to search for coupon codes or free shipping offers for all of your online purchases.
3. Organize your coupons: Organize coupons the way in which you walk through the store—putting those expiring soonest in the front. The average expiration of a coupon in 2009 was 10.6 weeks, according to NCH Marketing Services, Inc. 2009 Coupon Marketplace Facts
4. Stock up on sale items: When you see an item on special that you use regularly, or a savings is featured with your loyalty card and you have a coupon, stock up— 66 percent of coupon shoppers say they are often able to combine coupons with other in-store specials, sales or frequent shopper discounts.
5. Easy access: Create a coupon envelope that lives in—and is always returned to—the car of the family’s main shopper allowing even the unexpected shopping trip be one in which you save.
6. Plan meals around savings: If you find a fantastic coupon, don’t dismiss it simply because the item is not usually on your list. Planning your meals at the same time as reviewing coupon offers and store circulars lets you take advantage of really great deals—and try new recipes. Many savvy cooks create meal plans based on what the stores advertise that week.
7. Double your savings: If your favorite retailer offers double or triple coupon values, shop on the days when you can get even more savings. Also, look out for daily deals at your favorite local grocer or restaurant.
8. Do your savings homework: Consumer research indicates big-ticket purchases require research. The Internet can help. Electronics, appliances, furniture, autos, and trips top the list of more expensive items that require planning.
9. Call manufacturer 800 numbers: Up to 35 percent of manufacturers only send coupons upon request.
10. Eating for free: Kids eat free (our three favorite words)! Many chain establishments have proven the old adage of no free lunch (or dinner) wrong, especially if you have kids. Full service chain restaurants continue to offer some pretty sweet deals in the form of kids-eat-free promotions.
Live the value lifestyle and you’ll rarely need to buy anything that’s not on sale. For more tips to stretch your budget, visit redplum.com.
By: Lisa Reynolds, “Mom Saver-in-Chief” for RedPlum
Inheritance Choices
Lots of folks confuse bad management with destiny.~Kin Hubbard
Joan and Robin were sisters and had comparable lifestyles. When their parents died, they each inherited $200,000. Ten years later Joan was asking Robin for financial help. What happened? As soon as they received the money Joan had given $50,000 to her children to pay off their college loans, bought a new car for $30,000, put down $75,000 on a condo as a vacation home (leaving her with another mortgage, upkeep expenses and home owners association fees.) The other $45,000 just disappeared over the years on travel, shopping, house maintenance, etc. Robin had also used her inheritance to purchase a second house for retirement and vacations. Most of the time it was rented and that money paid the mortgage and all expenses so ten years later she owned it free and clear and was making money on the rentals. She had allocated $10,000 of the inheritance to splurge and gifted $10,000 to each of her children. The rest was saved or invested. Joan thought Robin was lucky and believed that things never worked out for her. She totally ignored the fact that they both had made choices that led to their financial outcomes. You can control your financial destiny by taking responsibility for your choices—make them work for you in the long run!
DEBTHELPER.COM 