Here are five reasons you should be paying more attention to your receipts:

Overpayment

To be a savvy consumer you need to ensure you are never overcharged for anything. You should check through your receipt before leaving the store so you can head back to customer service and report the errors to get a refund. Some stores promote other perks like double refunds if pricing is wrong.

Expense Tracking

You may think you can estimate how much you spend in different financial categories but you should utilize receipts to confirm exactly what you spend from month to month for budgeting purposes.

Deductible Proof

In addition to expense tracking, you will also need to hang on to those receipts for income tax time as proof of your spending. This is also true for independent business owners.

Spending Habits

By using your receipts to track expenses, you can use more accurate data to figure out your spending habits. Until you face the reality of how much you spend and how you spend it. This is the only way you will be able to establish an accurate budget and plan for savings to stabilize your financial future.

Receipt Cautions

Saving receipts for your financial planning is important but disposing of those receipts is also something you need to consider. Receipts often give away too much vital information that can compromise your personal and financial information. While many receipts are somewhat discreet, anyone picking up one of your tossed receipts may be able to use the information to rip you off.

Any receipts you are not saving for expense tracking or bank/credit card reconciliations should be properly destroyed using a document shredder. It can be easy to toss the paper into the nearest trash can wherever you are but that will give the public access to your information.

5 Reasons You Should Pay Attention to Receipts was created by and is property of American Consumer News.

Here are some ways to start revising a budget that is effective starting on the first day of a new year:

Gather Your Income Statements and Receipts

Starting before the rush of the holiday season will not only get you on track for the upcoming year, it can also help you plan for a more cost-effective holiday. Start during the fall months to collect your income statements from work and any other income you receive. Use that as a guide for how much you are expected to make in a year. You’ll need both the information and documentation for tax time and preparing this early will make it less likely you forget information. Use the list of expenses, both deductible and non-deductible to get an idea of how much of your income you spend and on what.

Create a Fresh Start

While you can use your former budget as a reference, it can help to restart a brand new budgetary sheet for the new year. Rather than just copy all of the categories you’ve used in the past, review your previous budgeting sheet to see where you can make cuts for the next year. Sometimes it takes seeing the big picture to truly understand the priority of cutting costs and sticking to a budget.

Review Your Year

There may have been times during the previous year where you were strapped for cash and came up short for the bills. Take the time to see where you struggled – are there any months in particular that were hard? You can then readjust your savings plan after making budget cuts to ensure you don’t have to go through money problems again for the coming year.

Resolve to Be Frugal

Since the holiday shopping season is a critical time of self-control in personal finance, it is also a great time to learn new ways to adapt to a more frugal lifestyle. Plan for the next year with frugality in mind by researching new ways to save on the biggest expenses you have within your budget such as grocery shopping, insurance costs, and transportation expenses. By pre-planning there is less pressure to make changes right now and you may be more apt to look at all of your options.

Review Your Services

You may have mindlessly paid your bills throughout the year without much thought to your actual satisfaction with services. Consider the changes to the banking industry in the last few months. Many bank customers are now paying more than ever for banking services that used to be free. The same is true of many service providers so take time during the last few months of the old year to evaluate the cost and customer satisfaction of the various services you pay for over the course of a year. Make the necessary changes to put more funds into savings for the new year and make your budget easier to commit to for the next twelve months.

How to Start Your Budget for a New Year was created by and is property of American Consumer News.

How To Know What’s Up (and Down)

The stores will release their Black Friday circulars highlighting the advertised deals in advance of the day following Thanksgiving. Consumers are encouraged to really look at the ‘deals’ being offered in this advertisement. Notice on the fine print of some items, there is a notice that outlines limitations on the sale. For instance, the circular will say “Limit 2 per store”, “No Rain Checks”, or “While Supplies Last”.

Additionally, this year’s advertisements have also small-print warnings that let consumers know that some products are only being sold in small quantities in the store. Topping the list on the ‘limited quantities in store’ products are big-screen plasma televisions and washer-dryer combos.

Deals Not That Cool

Consumers who are not aware of these common practices need to wise up about the battles ahead, Many complain that advertised deals should be backed up with sufficient quantities of merchandise or at least the option for a rain check. It seems many shoppers feel that retailers are not working much at all to bring in customers or make them happy once they are in the store. Consumers and experts alike have a hard time believing that many of the major retailers only supply 4 or 5 televisions to each store during the most-hyped shopping day of the year but spare no expense when advertising full-page specials of the same product.

Sadly, it is the excitement of getting one of that limited supply that keep consumers coming out each year. It is the same situation that caused the death of a shopper during last year’s Black Friday rush when a crowd essentially stampeded them to death, trying to get their hands on a ‘limited supply’ item.

Be Skeptical of Promises

If you are planning to brave the holiday shopping madness in-store or online on Black Friday, remember to be skeptical about deals before you get excited. Double check the small print and look for the ‘limited quantities’ disclaimer. Do not rely on rain checks to be honored if they are even offered. Even online orders can be canceled weeks after the purchase was made if the company cites the product is out of stock.

Black Friday Deals More Limited than We Think was created by and is property of American Consumer News.

According to a report on Fox News Business on Oct. 19^th; retailers are apparently offering aggressive lay-away programs for the upcoming Christmas selling season. 

The following provisions should be considered before using the lay-away option:

• An additional charge and service fee is part of the agreement. (Toys-R-Us = $10)

• The state retail tax must be paid at the time of initiation of the lay-away.

• An initial down payment of 20% is generally required.

• Installments must be made on a timely and specified regular basis.

• A specified date of payment completion is required.

• Partial loss of monies already paid can be forfeited in the event of refund or cancellation.

All and all, these programs can in actuality have a downside if consumers fail to pay cash and opt to use credit cards to make lay-away payments. In that case, consumers could be looking at the possibility of paying a 20% – 30% premium on those items verses simply waiting for promotional discounts and sales.

Various retailers will be creative and attempting all sorts of inducements to encourage consumers to purchase presents right now. That is what retailing is about. Programs will be offered as time moves on and the possibility of negotiation does exist. Keep in mind, the retailer has a specified time limit to successfully achieve their goals as well. That is their motivator.

The love and the desire to express that love through a specific gift is a constant for every parent or relative. Choices are not easy when weighing that recognition and hope for the registered joy on a child’s face. Regrettably that is the psychology behind retailing efforts during Christmas.

As a consumer, we all must keep in mind the bigger picture in terms of finances. Before you begin your holiday shopping, consider what your family can comfortably afford this holiday season and shop accordingly. If you use a bit of planning and common sense it is possible to buy presents that your children will love without breaking your budget.

Lay-away Programs – Boone or Bane for Consumers was created by and is property of American Consumer News.

Families are planning to spend less on trick-or-treat items such as candy and costumes. Last year, consumers spent on average $66.54 for Halloween but plan to spend only $56.31. That may mean less houses on the block being lit up to welcome trick-or-treaters, less parties, and less family entertainment. In order to save cash, parents plan to re-use last year’s costumes or create homemade costumes from household materials. There will likely be less new yard decorations in favor of previous decorations. Parents and kids will be less likely to visit haunted houses, haunted hayrides, and other fall festivities due to the continued tightening of family budgets. Even pumpkin carvings will be down due to the increase cost of pumpkins and decorating kits. Parties are also predicted to be on the decline. The amount of people attending or throwing a party compared to years past will be significantly lowered.

Consumer groups say that more creativity will go into this year’s celebrations, with less extravagance. Budgeting will change how people come up with new ideas to celebrate Halloween with their kids. Even teen consumers, who were last year’s biggest spenders, are predicted to cut costs because part-time jobs are getting harder to come by and many parents can not afford to help them with extra spending money. In the early days of Halloween celebrations, costumes and treats were all homemade and it seems that Americans by necessity are headed back to the basics. Creativity and frugality are winning out in many areas of the nation during the holidays and in daily life.

Community groups that sponsor local parades and family-friendly festivities for the Halloween holiday are likely to see an increase in participation, since many families prefer to not travel outside of their local area for activities, such as trick-or-treating and fall festivals. Novelties such as a costume for a pet and Halloween cards may be forgone altogether in favor of saving.

Research Shows Consumers Scared Off By Recession This Halloween was created by and is property of American Consumer News.

Set a Day Instead of going to see a movie every time a new one comes out, set a day each month that you and your family go to see a movie. Then, pick a movie that everyone would like to see a go to enjoy it. This way, you still get to go out and enjoy the movie-going experience without breaking the bank by going out too often. Of course there may be a special occasion where you want to see a specific movie in addition to your movie night. Don’t be afraid to do this, but try not to do it too often.

Get a Card  A lot of movie chains offer rewards cards. This may seem stupid, but if you go to the same chain each time, (like Regal), it can really save you some cash. Each time you go you may receive a different kind of reward, such as a free popcorn or a free drink. After a certain amount of time, you may even receive a free movie ticket. While this doesn’t seem like a huge savings, it can add up quite a bit over time, especially if you go to the movies often.

Skip the Food Sure, that popcorn sounds tempting. That candy looks scrumptious in the display case. But, do you really need it? Instead of buying multiple things, buy one or two things. Also, try getting a small. While you may think that this won’t be fulfilling, and you’ll just want to eat more later, you might be pleasantly surprised. A “small” at Regal Cinemas is actually pretty big. Don’t fall for those “value meals”. They’re really not much of a value. Food at a movie theatre can cost upwards of twenty dollars for two people. Cut this down, and you will be able to go see movies more often with the money you save.

Just follow these tips, and you can enjoy the movies without completely breaking the bank. Be responsible with your money, but also continue to enjoy entertainment with your family, or just by yourself. If you’re careful, you can still have fun!

The Rising Cost of Entertainment was created by and is property of American Consumer News.

What is your biggest financial concern? If you were to ask yourself what you would need to be better-off financially, what would you say? Is it to eliminate your debt, decrease your living expenses, increase your income, or is it something different?

Well, according to a Gallup pole done in April of 2009, the biggest personal financial concern is “lack of money.” If this is the case with you, and I’m sure it is to some extent, the question that needs to be answer then, is- “What can be done about it?”

Your Finances Can Be Somewhat Like An Apple Tree

You should ask yourself another question first, “What is the real issue that causes someone to have a lack of money?” Because most of the time what seems obvious to us is just not the answer. And we need to get to the actual root of a problem to fix it.

For the sake of an analogy, let’s consider an apple tree planted in a yard last winter. The ground gets a little soggy at times, and this might seem like a good thing for the tree – since it requires water to grow. But you know what? Too much water on the roots can give you a sick plant, just like not having enough water will do. And in order to keep the tree from having trouble caused from too much water, it needs to be planted in dryer ground. This is basically what needs to be done with our finances.

Do I Not Have Enough Money or Does My Money Not Have Enough of Me

Sure, not having enough money is a legitimate problem. But why is it a problem?

One thing that seems to be consistent among people from all walks of life is that most people are never content with their income – no matter how much that income is. Even a doctor making over a quarter of a million dollars per year might express unhappiness with his or her level of income and be hurting financially. Even at that level of income, it is possible to have trouble paying all of your bills. How is that possible? It’s human nature to spend more, the more you earn.

Most of the time, it appears bad money management is more of a problem than the amount of money people earn. You might think credit card debt is at the top of the list of the biggest personal finance concerns, but it came in at number 5.

If the problem isn’t the amount of money most people are earning, and instead the problem is how the money is managed, one step to a solution would be to keep a good budget! Or, as the analogy goes, put your finances into better ground.

One way everyone can avoid going through life with less money than needed to pay for their expenses is to keep expenses and spending less than your income. This is the most crucial step. Once a person has more money than he or she spends, suddenly “lack of money” no longer seems to be debilitating.

Not Enough Money – Here Could Be The Reason was created by and is property of American Consumer News.

Create Your Vacay Budget
Just like with your personal finances, it is important to set your money limits before you even start exploring where you want to go on a trip. Be sure to account for everything in your budget, such as airfares, gas, hotels, food, entertainment, activities, souveneirs, and the unexpected surprises that may spring up.

Cement Your Airfare
If your flying for your trip, start looking at rates now ad book early to get the best deals and sae the most money. Websites like kayak.com can help you narrow down the best deals in airfare and travel times. Yapta.com will alert you when the airfare drops and for $15, the website will help your fight for  a refund if you have already played for your flight.

Bargain Rooms
When you are on vacation, the chances are good that, unless you are on your honeymoon, your hotel space will be used mostly for changing, bathing, and sleeping – so why spend a ton of cash for luxury digs when you never plan to be there? Visit hotels.com or tripadvisor.com to find low cost lodging and real-life reviews from those who have stayed before you.

Rental Cars
For the best rates on rented vehicles, at your destination, plan to rent from a location outside of the airport, perhaps find one near your hotel. Check out hotwire.com for the deals and the information. You can generally save a lot of cash if you shop around.

Insure Yourself
If your trip costs more that several hundred dollars, you might want to consider travel insurance to protract you. In the event of an illness, disaster, or even if the airline loses your bags, you will be protected. Insuremytrip.com can give you the lowdown on different coverage and prices.

Seek Professional Assistance
If our trip planning is not so simple, do not hesitate to consult with a travel agent. Their experience and accessibility to exclusive deals can save you way more money than you would spend on their services fees, which generally run between $50-$200.

Vacations should be a source of relaxation and fun. Getting into debt over a trip that is supposed to relieve stress, will only add to it. Planning ahead and shopping for deals can allow you to afford a vacation. If you want to even make it easier on yourself, start saving in advance so that when the time comes to go away, you’ll have the necessary cash to pay for your vacation and leave debt behind you.

More Vacation for Less Money was created by and is property of American Consumer News.

Here is a list of tips to help you make the child care chose more financially reasonable and possibly even eliminate the cost completely:

1. Start With Family and Friends
Many people will fail to inquire from relatives and friends about child care responsibilities simply because they feel bad about it. But perhaps there are some people you know who could use some extra cash and would be willing to care for your little one. By arranging child care with someone you know and trust, it can take away a lot of the guilt of going to work each day. Plus, you might be able to negotiate an offer of financial payment that would ultimately be lower than a professional day care facility. Never assume your relations will be willing to do it for free. Be prepared with a dollar amount of how much you are willing to pay in return for services.

2. Form Complimentary Schedules
If you or your spouse work at a facility that offers different shift hours, discuss with your HR department about the possibility of switching shifts so that either you or your spouse will be home with the kids. Even if the hours overlap by a few hours and you still need a day care provider, you will at least cut down on the amount of money you will have to spend on care.

3. Flexibility in Work Time
If you feel it may be a resolution to your child care concerns, speak with your employer about incorporating flex time into your schedule, which will allow you to be home more often with the kids. You can also come up with a plan to try telecommuting to work a few days a week. Create a professional plan to present to your boss about what you can accomplish working at home and what you will need to get the job done.

4. New Job, New Opportunities
If you are going to work for a new company and are not familiar with the allowances or discount opportunities that may be provided concerning child care, don’t be shy. Speak to company representatives about any child care related information they have. Some companies will offer discounted rates at day care facilities.

5. Child Care Accounts
Ask your employer if they offer a flex spending account for child care. The IRS created such an account that allows you to put money away for child care related expenses with pre-tax dollars. Money will be taken out of your pay and put into the account. You can then use the tax-free money for child care expenses.

6. Find Subsidized Day Care Facilities
Qualifying individuals who need additional assistance may be able to obtain lower rates out of pocket for day care expenses. You will have to inquire with your local agencies or the day care facility directly to find out about the application process. You can find a list of resources at this website.

6 Tips That Will Save You Money on Child Care was created by and is property of American Consumer News.

The US Postal Service sited the reason for the price increase was due to the cost increases of production costs. The price of stamps is not allowed, by law, to rise more quickly that the US consumer price index, which is the method of calculation for inflation.

If you are interested in pre-purchasing stamps at the current price of $.42, you can still purchase the “Forever Stamps” and not need to purchase additional two-cent stamps when the price change takes affect. The “Forever Stamps” were brought into circulation in 2007 and since then have sold by the billions. The theory behind the “Forever Stamp” is that consumers can essentially lock in a lower price by pre-buying the stamps and in the event of an increase in price, the stamps will still be honored. Every time the stamp prices increases, the cost of the “Forever Stamp” will also increase.

Consumers still have about three months to stock up on the stamps at the current $.42 price tag. If you can work it into your budget, it may be worth it to purchase a book of the “Forever Stamps” once a week and stock up now to save money in the long run. While many consumers have opted to start paying bills and writing correspondence via the internet, there will always be a need to have stamps on hand. If you send out holiday cards, the cost of stamps may be on the rise again by the time we make it to December, so you can truly save yourself some bucks later by purchasing your stamps now.

Mark the date on your calendar now so you don’t forget. Take a good luck at how many stamps you use on average in a year. Include your annual holiday cards, party invitations, letters to family and friends and any bills you still pay by mail. Take several trips to the post office during the next three months and buy a book when you can afford it. Tuck the stamps away somewhere safe, but not so safe that you can’t find them. If you keep a good supply of stamps and keep up with impending price increases, you will continue to save money over the years as the cost of stamps no doubt continue to rise.

Hold On To Your Wallet: Stamp Prices Rising Again was created by and is property of American Consumer News.

Whether you are in over your head or just starting out, in order to escape or keep yourself from visiting the “Debt Trap” is to have a good sound financial plan. It wouldn’t make much sense to go hiking in the woods with out a compass; likewise, it’s not very sensible NOT to have a “compass”, or financial plan for your journey ahead. You don’t have to be rich in order to have a plan, nor will having a plan make you rich. It simply helps you make what you have work.

The number one thing you need to do when constructing a financial plan is a budget.

Five ways to assist you in creating a budget are:

1. Discuss with your partner your financial goals you both have. Be realistic when setting these goals. You will be more likely to achieve these goals if they are within reason.

2. Gather all the necessary information i.e., pay stubs, bills, receipts, anything that will help you get an amount of your income and you’re spending.

3. Obtain a budget worksheet. There are many on the internet that you can download or you may decide utilize a financial software program for your computer. (Quicken QuickBooks and Microsoft Money are examples)

4. Together, devise a budget. This will ensure you both know and understand your financial status.

5. Chances are your budget will not work out the first time. Like anything else being created, it will need some “tweaking”. This is the hardest part because it takes time, consistence and patients.

Now that you have a budget in place, you need to make it work.

Keep it up to date. Take time to look over it each year and making any modifications. Your income and expenses will change over time; therefore, your budget will need to as well.

Keep it simple. Don’t make maintaining your budget be a full time job.

Expect the unexpected. Keep enough money in your budget to cover any surprise bills that may come find you.

BE HONEST. This is one of the number reasons a budget fails. Make sure your numbers are really what you earn and spend.

Progress is hard to achieve without a plan!

The “Debt Trap” was created by and is property of American Consumer News.

 A Home Management Binder

For those of us who like having information in physical, paper form, a home management binder is an excellent option for organizing and managing your household. A basic three-ring binder can be an essential tool for organizing and managing your home.  It takes a little time to get it set up, but once it is set up, you’ll find it extremely useful for keeping all of the important information at your finger tips.  Essortment.com offers a how-to for creating your own home management notebook. 

If you need more advice or suggestions for the type of information to store in a home management binder, this article from Organized Home offers tips for household notebook dividers.

DIY Planner offers printable templates based on the “Getting Things Done” system of organizing,  You can print them out and create your own planner in various formats.

Online Home Management Tools

If you spend a lot of time on your computer, it may be easier to keep yourself organized through the use of various online tools designed to help you manage your household.  From to-do lists to budgeting to meal planners – there is no shortage of tools online and many are free to use.

Remember the Milk:     An online to-do list and task management program, remember the milk integrates with various email programs and even your iPhone.

Menu Planning: planning your meals and shopping lists can take up a considerable amount of time each week.  If you’re a family that likes to use sales and coupons to make your food budget go further, it can take even longer to prepare your shopping lists and menu.  The organizing junkie offers some great ideas for meal planning:

Budgeting: There are hundreds of tools available to manage your money online, and many are free.  You might have to try a few out before you find one that works for you, but here are a few to get you started:

• Destroy Debt
• Mint
• Quicken online

Tools for Managing Your Home was created by and is property of American Consumer News.

But what happens when the holiday spirit moves you too much and you find you have drastically overspent your funds, especially when those funds are on credit?

There are several steps you can take to keep the money monkey off of your back and help you recover from a unplanned spending spree.

Learn Your Lesson

The first thing you want to learn is your lesson. Do not do it again. Always go shopping with a plan and a budget in mind. Do not head to the mall simply because you are bored. Only go if you have a specific mission. Christmas shopping is no exception. You need to plan your trip and have a list of how much you can afford to spend on each person’s gifts – not how much you WANT to spend on people’s gifts.

Don’t Avoid the Subject

You may feel ashamed or embarrassed about overspending but it does happen to the best of us. The only shame you need to feel is if you avoid the situation all together. Procrastinating will only make it worse. Gather your receipts and find out exactly how much you have spent and overspent. Make sure your bank account will not bounce, causing overdraft fees. Make sure you haven’t gone over the limit on your credit cards.

Pay the Bills Now

As soon as the credit card statement comes in – pay it. You’ll feel better having done something positive and you will avoid facing latte payment fees you can cause by avoiding the subject. Pay as much as you can toward to balances and add a little extra to make up for the extra spending you just did.

Switch Credit Card Companies

If you have several credit cards, take advantage of special offers for balance transfer cards, where you can roll over all of your balances onto one account. It will make it easier to pay off your credit card debts having one payment a month with more towards the balance than paying on 5 cards the minimum monthly payment. Before signing up for a new account, research the rates and rules for each balance transfer credit card available to you. Don’t just jump at the first offer. Understand fees and charges for transferring higher balances.

Get Prepared for Next Year

Having learned a fresh lesson, you can start planning now for next year. Put money into a Christmas club and shop early to avoid sprees. Work on a plan to avoid using credit cards altogether for next year.

Dealing With an Overspending Spree was created by and is property of American Consumer News.

Between the rising cost of animal health-care, including vaccinations and emergency services, there is little room for much else when you consider the immediate needs of your family. Here are a few tips for cutting back on the pet luxuries in order to stay on track with your budget.

Budget

Speaking of budgets, if you consider your pet a member of the family, there is no reason why they can’t be included in the family budget. Consider the issues of health treatments, preventative care and medicines, grooming supplies, food, treats, and toys. Regular shopping trip should have already enlightened you as to the cost of your regular purchases. Look at the figures on paper and you might be surprised at just how much you spend on Fido.

Don’t Get Caught Up in Cutsie

The pet market is expanding rapidly. Due to the increased exposure of celebrities and their pets with clothes, strollers, and diamonds, there is a larger market than ever for merchandise solely for pets of every kind. Unless you live in sub-zero temperatures during the year, your dog probably doesn’t need a cashmere sweater to be styling. Avoid the kitschy stuff out there for your pets and don’t fall for the impulsive buys that can cost you more than can afford. Stick to the basics – food, water, shelter, and lots of love.

Save for Your Pet

Just like your pet should be included in your budget, there is no reason why they can not be a part of your savings plan. Many of us would do anything to save or improve the lives of our pets so take consideration of medical emergencies when devising your savings plan. In the event of a life or death situation, you won’t be forced to finance surgery or treatment on credit. Instead, you’ll have cash that can make the decision to save your pet’s life a no-brainer.

Bathe Your Pet on Your Own

Pet grooming is convenient and a lot less messy for an owner. However, it is a luxury that is not necessary. Keeping your pet groomed with regular brushings should limit the number of more intense grooming practices. Purchase a good quality pet shampoo and get your pet used to being bathed at home. It’s a good bonding experience for both pet and owner. If you aren’t comfortable about clipping nails or shaving fur, research local clinics that will help teach you some safety tips.

Shop In Bulk

If there are certain things your pet can’t live without – think litter, dry food, non-perishable treats – shop at wholesale outlets and buy in bulk to get the best savings, provided you have the storage area to put it in.

Stop Splurging On Your Pet and Save Big Bucks was created by and is property of American Consumer News.

Being in debt, no matter how deep or how recent, is not the end of the world. The key is to attack the debt head on. For this you need to start with a plan. The first step of such a plan is to collect all of your bills at the same time and analyze what is going on with your account. On a piece of paper, write down the name of the account, the total balance due, the minimum payment due each month, and the amount of the interest rate charged. Make certain you have included all of your bills. Ordering a copy of your credit report can help to ensure you have included all of your debt and can help you understand the exact nature of your personal financial situation.

After you have listed your debt obligations, look over your list and determine which of the accounts charge the highest interest rates. Number each account according to the interest rate charged. For instance, the account with the highest interest rate should be listed as number one, and so on down the list.

Once you have created your list of debt, start working on your budget. Total up all your sources of expendable income and develop a budget for a month. Be sure to include daily living expenses and the like. Your priority will be to pay off the bill with the highest interest rate first, despite the remaining balances. Many people make the mistake of paying off the accounts with the highest balances instead of the highest interest and find they never get anywhere.

When creating your plan of attack on the high-interest accounts, figure out how to make payments that are double or triple the minimum payment required until the account is paid in full. As one account gets paid in full, take that payment and move it to the next high interest account. Continue on this payment plan until your accounts are paid off and current. You should find that it becomes less difficult to deal with overwhelming debt once you establish a cycle of budgeting and payment plans. If you find you can not afford to double up on payments and still live an adequate lifestyle, you may want to consider finding new employment with a higher pay rate or perhaps take on a second job and dedicate those funds to paying down your debt.

Pay Attention to Your High Interest Not High Balance was created by and is property of American Consumer News.

• Penelope Pince from Our Fourpence Worth has come up with Monopoly Game Expansion to teach the kids about savings accounts and interest.  Absolutely love this!
• Ron from The Wisdom Journal shares a story based on actual events. Bad debt leads to a bad job and a rough life.
• Discover Debt Freedom discusses 4 budget killers to watch out for
• Patrick at Cash Money Life reminds us to think twice before canceling credit cards
• Money Answer Guy asks whether renting can ever be an investment
• Debbie the Debt Destroyer has some tips for controlling medical costs.

Carnival of Personal Finance #158 at Mrs. Micah’s was created by and is property of American Consumer News.

Here are 4 tips for teaching your kids to be better money managers:

1) Work to set the good example.  If your children see you running out to buy every item on your wish list, whether you have the money or not, they’re going to think that’s just how it’s done.  On the other hand, if they hear you discussing purchases in advance with your partner, or see you planning where the money will come from for the next purchase, they’re going to learn that financial discipline is the first step in being responsible with money.  If you want your children to understand budgeting; live within your own budget.

2) Teach children to give some of their money to charity, save some of their money for the future, and keep some available for spending.  For young children, you might set up three different piggie banks with labels on them, and help your child divide up money whenever they receive it into the different categories.  As your children get older, you can graduate to a “real” bank account and a notebook or check register to help them keep track of how much money is deposited into which category, and where the money goes that is withdrawn.

3) Consider a points system to reward children for being active and responsible members of the family.  While some families feel giving a weekly allowance is justified, other families don’t believe that sets a realistic example.  (Who just gets money each week for no reason at all?)  You can set point values to certain chores or activities that are important to your family and at the end of the week set a payscale based on the number of points the child has earned.  You can even make it possible to lose the points they’ve earned by negative activities, and give a bonus if all possible points have been earned for the week (much like employees are rewarded for exceptional work). 

4) Minimize impulse spending, and teach how to spend money realistically.  It would be nice if we got to use the money we earned to buy anything we wanted.  It would be even nicer if we got to earn all of the money we made, rather than pay some to taxes… so when children receive money for birthdays, holidays, or from your point/allowance system, it’s important to teach them how to spend money realistically.  For younger children using the three categories of banks, set percentages for how much will go into each category.  As children get older, probably somewhere around 13, it’s time to start teaching them a more realistic sense of money and how it is used in the “real world”.  For example, a percentage of their money could contribute to their clothing purchases, a percentage to giving, saving, and spending.   It’s also a good idea to encourage children to keep a list of things they’d like to buy some day, and help them save for specific items to minimize impulse spending.  When children contribute to their clothing expenses, they’ll be happier to shop discount racks, consignment shops and thrift shops because their money will go further and they’ll be able to buy more!

Tips for Teaching Kids Better Money Management was created by and is property of American Consumer News.

Some of my favorite articles from this weeks carnival:

• Increase Your Salary Without Increasing Your Work, at Digerati Life.
• How to Make a Budget and Stick to it, by David. Great step by step stuff here if you’re just getting started trying to manage your money.
• Looking for Extra Money to Pay off Bills? Here are 10 Things You Can Do Today To Free Up Money, by (me) Debbie, at Destroy Debt. Like my long title?
• 5 Tips for Finding Financial Freedom, at Discover Debt freedom.

Carnival of Personal Finance #155 Published was created by and is property of American Consumer News.

I decided to create an account so I could see how it works and exactly what it would do.  I also figured if there was a charge to be made for the service I would definitely discover it when signing up.

So after creating an account (took less than a minute), I found I could add my checking, credit cards, savings and brokerage accounts to the system.  Immediately, I decided to add Paypal, because the primary reason I bought the latest version of Quicken this year was because it had Paypal support – supposedly it would download my transactions from paypal and update my records in Quicken like it does bank accounts.  It never worked for me, despite numerous customer support calls and emails.  I tried making it worke very day for 2 months actually, and still receive customer support emails that tell me to inactivate/activate the account and see if it works now!  Anyway, I decide to put Mint.com to the test and enter my Paypal account first.

Within a few seconds, Mint had connected to my Paypal account, downloaded transactions and displayed an accurate balance.  Amazingly enough, the transaction section knew how to deal with all the repeat entries Paypal generally includes (a pending entry, invoice entry, and actual money-changing-hands-entry).

On a variety of tabs, I was able to see how I was spending the money in my account, received suggested ways to save more, a pie chart and a listing that showed me what I was doing with the money in this account at a glance.   It took me less than 5 minutes to discover all of this with the one account I entered, and I can’t wait to enter all of my other bank accounts.

If you are looking to take better control of your financial situation, I think you’ll want to try out your Mint.com account.  I’m sincerely impressed, and from what I can tell- this rivals the Quicken software… and it was completely free.

Website Review: Mint.com was created by and is property of American Consumer News.

A friend of mine uses this system for everything, including presents that she purchases outside the realm of grocery and healthcare items. She has a series of envelopes stored in a safe in her home. Every year she marks a series of envelopes with the name and birth date of everyone she buys for, along with special envelopes for the new purse, new shoes, or whatever other item she considers a luxury, and the amount she intends to spend.  There are also envelopes earmarked for her vacation funds and any side trips she plans to take.

Every pay day, a set amount of money is taken from the paycheck and distributed equally into each envelope. The amount she takes from her check has been pre-determined based on her bills and other budget considerations. The amount is not that large each two weeks, but over time it builds up. When she has saved the amount of cash she needs to make the purchase, she goes shopping! She shops without the guilt, without the credit card bills, without the worries of being able to afford it. She doesn’t worry about being able to buy gifts for loved ones and she never misses a birthday or special occasion.

While it may take longer to actually buy the item you desire, financially it is well-worth the wait. Impulse buys are ceased and there is plenty of time to mull the purchase over beforehand. It also makes it easier to focus on saving money. If you have a set goal of $200 to buy the new television set you want, it is easier to focus on that $200.

If you are living on a tight budget, think of simple ways to supplement your income in order to contribute more money to your envelopes. Mow the neighbor’s lawn, cook dinner for an elderly couple, or run errands for a busy parent. You may not get rich from odd jobs but you can certainly fill up your envelopes faster.

HOW TO BUY BIG-PRICED ITEMS ON A STRICT BUDGET was created by and is property of American Consumer News.

I have seen various practical products for sale that also help to support causes, such as light bulbs, note cards, greeting cards, clothing, jewelry, candles, baskets, and much more. You can either “shop” by the charity of your choice or by the product of your choice. Look around for all of the types of items available for sale by the charity or cause and then keep it in mind for the next time you need to stock up. You can also purchase the items as a gift for those special occasions. The items will most likely be very unique and not something you can find just anywhere. Several things like note cards can even be personalized for the intended receiver. Many of the products can be purchased online so it saves you money and time. Not only are you getting something you needed anyway, you can also continue to regularly contribute to the fundraising efforts of your favorite cause.

Supporting the causes that are dear to your heart does not have to break the bank. Remember there are other ways to help out organizations that cost you nothing financially, only your time and dedication. Volunteering at a local women’s shelter or donating old sheets and shredded papers to the ASPCA, are invaluable ways to help efforts. It cost nothing and can give you everything!

How to Support Your Favorite Charities Without Busting Your Budget was created by and is property of American Consumer News.

Each time you prepare a list for the grocery store, make sure you have all the ingredients for the upcoming week’s meals. You can also organize your coupons based on your calendar. It may help reduce the time spent sorting them and encourage you to use coupons more consistently. Another advantage is you will gain a better perspective on how much you actually spend on groceries each time. You have a better idea of what to expect expense-wise.

Be creative with your meal calendar. Just because you are planning ahead doesn’t mean you need to fall into a rut. Sit with your family and come up with some fun theme nights. Everyone will feel involved and quality time with the family just gets better!

Menus Aren’t Just for Restaurants was created by and is property of American Consumer News.

In a 2007 survey conducted by CareerBuilder.com, the nation’s largest online job site, four out of every ten American workers survive living paycheck to paycheck. 41% of the working public would not be able to meet their living expenses without relying on the next payroll check to come in.

The incoming money is spent before it is received in many cases. Once that check is cashed, one in five of those workers have nothing left over to add to a savings plan.  These statistics do not just apply to minimum wage workers. Surviving paycheck to paycheck is happening up and down the pay scale and it is affecting more than our bank accounts.  Struggling financially is one of the leading causes of stress. It becomes a vicious cycle of anxiety and depression when you can’t keep up with the bills. This, in turn, leads to the tendency to ignore the financial situation you are in because you haven’t enough money to pay your bills. The shunning of your bill collectors leads to guilt and higher bills you need to pay due to late fees and penalties.  More and more workers are under constant stress and worry because they fear the ends will never meet. Divorces rates are increasing as are incidents of domestic violence. I don’t have to read about it in the papers or the magazines to know how embarrassing and truly sad it is to feel like all you ever do is work and still can’t go out for a steak from time to time. It isn’t just me either. My colleagues, family, and closets friends are all working extra hard to make sure the lights stay on and the house stays warm. Necessities like gas to get to work and food to eat and just getting out of hand in price and making personal budgets harder to negotiate.

Hearing those closest to me lament the fact that they haven’t any “fun” money to at least take a break from the stress is hard. Realizing it isn’t just our little circle that is suffering is sobering. We can spend every day reading the daily headlines about someone else who couldn’t deal with the stress. Those who have resorted to acts of thievery or worse are just consuming the news around the country.  While we may not see how the ends will meet today, it is important to remember to keep perspective on the situation and make sure you are taking care of yourself first. Don’t feel guilty about paying yourself first or making that co-pay to talk to a doctor about your levels of stress. The ends will meet one day and you should make it a priority to live to see that day.  

Will The Ends Ever Meet? was created by and is property of American Consumer News.

The holiday season is over for most of us. But guaranteed a part of that season is going to stick with us for a long while – years even. How is that possible? Two words – credit cards. If you are one of many people who shopped for Christmas on credit, the statements you are about to receive month after month may be anything but spirit-filled.

The annual tradition of opening and contributing to a “Christmas Club” account is strong with my family, though it has stopped at my generation unfortunately. I actually wrote this article to make myself stop procrastinating and go out to open an account. Most banking establishments will offer a type of account where you deposit a small sum of money on a regular basis throughout the year. Most people will opt to deposit a set amount every payday and the bank will require that you abide by the payment schedule you set up for the account. There can be penalties if you do not make regular contributions or if you withdraw your money early. At some point before the holiday season start, depending on the policies of the financial institution, you will receive a check for the full amount of money deposited into your account.

These types of accounts do not earn large amounts of interest but the amount you save by making small deposits every week or so compared to the amount of credit card fees could be astronomical! Also, because you are obligated by the bank to pay fees or penalties for withdrawing money early or for not making regular deposits, you may feel more resigned to leaving the money alone and waiting for that nice check at the end of the year.

It is a good idea to check out the policies of several local banks to determine which one would be most compatible with your needs. If your paycheck is directed deposited into your bank account, you may be able to save a step and set up an allocation of funds directly into your Christmas Club account. You will have to speak with your human resource/payroll department to learn the specifics.

Those who do not want to “lock up” their money in a bank account still may consider using the same principal at home to save up for the holiday shopping season. Setting aside a small amount of money every week will help you to avoid costly credit card disasters during crunch time.

Holiday Shopping Done – Let the Budgeting Begin was created by and is property of American Consumer News.

Step One: Try using the Budget calculator from Providian’s website to give you an accurate idea of where your money is currently going.

Step Two: Establish goals. Write them down! What bills do you wish to pay off this year? How much money do you hope to have in your savings by the end of the year? Use these goals as your roadmap for what you need to do.

Step Three: Account for your current spending. When people do this, it’s often a real eye opener. For two or three months, write down everything that you spend- even the 99 cent pack of gum! You might be able to cut back on certain purchases that you didn’t even think about before doing this exercise, and it may add up to being able to save more or pay something off sooner.

Step Four: Using the information from previous steps, create a new budget. Figure out how to reach your goals by changing your spending habits, either increasing your savings or reducing your unnecessary expenses.

Step Five: What happens to most New Year’s resolutions? We make them, we write them down, and one month later we forget about them! It’s important to measure your progress on a monthly basis to make sure you are still on track to meet your goals, and determine if there is a need to change any of your stategies.

Step Six: Remember the days when dentists would reward a child with no cavities by giving them a lollipop? It kind of defeated the purpose and that’s why you’d have a hard time finding a child’s dentist that still uses this strategy! In order to maintain your budget though, you may need to reward yourself from time to time- just be careful that you don’t blow your budget by planning lavish rewards that cost a fortune and go well outside your “entertainment” budget amounts!

Do You Need a Money Diet for the New Year? was created by and is property of American Consumer News.

In order to reduce the amount of pennies you carry around with you or stash in a jar to roll later, just keep four pennies in your wallet at all times. That way, you can give the pennies when you make purchases and you’ll always get silver coins back. (Then you can roll the silver and make bigger deposits!) If your coffee and danish comes to $2.86 at the local convenient store, hand over a five dollar bill and a penny, and you’ll get $2 and instead of pennies, a nickle and a dime. At the end of the day, put all of your silver into a jar for your “rainy day” fund, and add four more pennies!

Bargain shopping online! Many people shop online- and especially during the holiday season. Don’t take the first total you get during your online checkout as the final word! Check around the net for coupon codes that will let you save shipping and/or 10% off your order. You’d be surprised how easy it is to find these codes (if you don’t do it already that is!) Using bargain shopping sites like fatwallet.com, bondrewards.com, Froogle, MyBargainbuddy.com and dealnews.com will help you stretch your online shopping dollars a little further.

Use the credit card company’s grace period. As long as you pay your credit card off in full each month, you can take advantage of the interest-free grace period and get yourself an interest free loan for a month. If your statement closes on the 22^nd of the month, you would buy your item on the 23^rd. The item won’t show up on the statement until the following month, and you usually have 10-20 days of “grace” period which means you get about 45 days of interest-free borrowing. Just be sure you know when the closing date is if you use this method.

All the non-monthly expenses need to be dealt with. Figure out how much you spend on the big, non-monthly expenses in a year’s time- things like holiday shopping, birthdays, property and school taxes, home owners insurance, auto insurance, vacation, car and home maintenance, etc. Take the total number and divide by the number of paychecks you get a year, and transfer that amount automatically (before your greedy mitts have a chance to use it!) to a high interest account, like ING Direct, with no minimums or fees. When it comes time to pay one of these non-monthly expenses, you should have the money available! If you don’t have enough money to pay your monthly expenses and these non-monthly expenses, you need to rework your budget!

Money Tricks and Tips You Should Be Using was created by and is property of American Consumer News.

You Spend Less – Dunn and Bradstreet did a study a while back showing that the average purchase size on a credit card was over 10% more than the average cash purchase size. That number went up higher in some retail establishments just as fast food restaurants. Whatever the reason, when we pay cash, we end up spending less.

No Finance Charges – A lot of people use their credit cards to pay for small impulsive purchases, and over-time these add up into a big pile of credit card debt if you don’t pay on them every month. If you aren’t under some 0% APY introductory rate and just pay the minimum payments, you could easily pay for your purchase two or three times because of the finance charges that you’ll have.

No Overdraft Fees – It can be very difficult to keep track of one’s checking account with all sorts of bills that come each month, checks you forgot you wrote, and automatic drafts that come out each month. If you don’t keep a good padding of cash in there, it’s very easy to lose track of how much money you have in there and be spending money you don’t technically have. Once $20 overdraft fees start coming in left and right, it begins to hurt!

No Going Over Budget – The cool thing about paying with cash is that you can never accidentally pay too much. At the beginning of the month you can take out exactly how much you plan on spending for that month and nothing more. If you don’t carry your credit and debit cards around with you, you can never spend more than you had hoped to at the beginning of the month.

Get a Deal – If you pay for larger ticket items with cash, you can often get a great deal by paying for cash on the spot. There’s something powerful about cash when it comes to negotiation and it will be very hard for a sales person let you walk out the door when you have hundred dollar bills in your hand.

Five Reasons to Always Pay with Cash (And Throw Your Credit Cards Away) was created by and is property of American Consumer News.