Consumers have trimmed spending where they can; taking advantage of coupons, purchasing store brand over national brand and eating at home in an attempt to scale down the household budget, but budgeting isn’t the only issue they face.

• Credit card rates and penalties are on the increase. With lines of credit maxed out or discontinued consumers can no longer resort to credit as their safety net.
• Many household have reported a loss or reduction of healthcare coverage resulting in the inability to meet their medical bills.
• Job losses continue to be reported especially in the lower –income households.
• Delinquency in major bills and mortgages continue to be reported.
• Housing foreclosures continue and mortgage modifications are bottlenecked.

In other words, consumers are faced with greater financial demands than they faced last year and are bringing in less income.

Short bursts of spending have been reported for new cars and homes, no doubt do to the recent Cash for Clunkers program and First Time Homebuyer incentives, but generally speaking the purse strings are still fairly tight.

• Increases in sales of canning and freezing supplies suggest America is going back to the home cooked meal.
• The movie rental industry and cable television have seen a drop in numbers as consumers report more viewing of local channels via their home computer.
• Estimates for holiday sales are projected to be about the same as last year with online shopping coming in ahead of the usual brick-and-mortar shopping trip.

It seems a blanket of malaise has settled over consumers. Worn out by the financial rhetoric of months past and with little hope for meaningful improvement in the near future many are just doing the best they can which is simply living in the moment, which might be one of the best lessons gleaned from these times.

As consumers learn to appreciate the simple things in life and create new lifestyles out of the economic fall-out we may very well see a resurgence of personal empowerment, dedication to family and community and the ability to smell the flowers along the way. Of course, that would mean the current means by which our economy is propelled would also need to change.

Sources: The Nielsen Company/ Nielsen Economic Current/ Nielsenwire/ Trade-Offs-Dominate-Shopping-Decisions. ConsumerReports.org/ Consumer Reports Index report.

Consumers Living in the Moment and Spending Time at Home was created by and is property of American Consumer News.

Fast food franchises have not ignored consumer demands and have made the effort toward healthier menu options.

• Processed food. Regardless of their best intentions, the huge demand for fast food items prevents most franchises from providing fresh food made to order (regardless of their marketing). Almost all of the items you purchase at a fast food restaurant is processed. In order to maintain consistency throughout the franchise, food is prepared in gigantic factors and then distributed to different locations. Since much of the flavor is destroyed in processing, they then have to add artificial additives to give the food taste.
• For consumers trying to watch their waistline or just eat healthier, fast food can sabotage your best efforts. Of course moderation is key to a healthier lifestyle so one trip to the drive through will not wreak havoc on your diet, however one trip per week or more could certainly have a negative impact. It is believed over consumption of fast food is contributing to the growing number child and adult obesity in our nation.
• Chicken has long been thought to be a healthy alternative, however unless you avoid fried chicken it actually has more calories and fat than burgers. Considering the huge popularity of chicken nuggets and children, parents should consider how much fast food their kids are eating.
• Fast food restaurants will likely include calorie information in the future to those who want to know how many calories are in the items they are eating. Until then you can always go to your favorite fast food chain’s website to find nutritional information or inquire at the store. Remember portion control as well when dining out. Most meals in the US, fast food meals included are simply much larger than you need. Avoid super sizing and eat only until you are full.

It is unlikely that Americans will give up their love affair with fast food, however consumers should make the effort to educate themselves about what they are eating. Nutritional information is readily available if you are willing to look. While it may be easy and convenient to hit the drive through for lunch or a take home dinner, it could cost your health in the long run if you are not paying attention to what you eat.

Now that you know what to look for when ordering you have a bigger question to consider.  Is it worth it to pay more money for food that is potentially unhealthy?  We are all looking for ways to save money and with many menu items (dollar menu excluded) rising upward in price, one must consider if grabbing a meal at the drive through is actually better than just buying the ingredients to prepare a nice dinner at home.  Some areas of the country are reporting the cost of going to a fast food restaurant close to $10 per person, meaning a family of four will spend $30-$40 for fast food. 

Choose you menu items carefully, avoid over consumption and alternate between fast food and other dining options to reduce your out-of-pocket costs and negative health consequences.

The High Cost of Fast Food Convenience was created by and is property of American Consumer News.

Here are 5 simple tips to keeping your finances straight and get the most out of your cash.

Write What You Spend – Many people are impacted by a visual and if you truly want to understand where your money is going or how you can get better at saving it, you should start tracking it. Commit to tracking your every penny for a solid month. Then sit with your spouse and analyze the results. Little notebooks can easily fit into your pocket or purse and cost some change at a dollar store. This will help give you a reality check on how to cut spending and how much you can start saving.

Avoid the Green-Eyed Monster – Society often tends to be obsesses with other people’s income, job titles, and other financial successes. Personally acknowledging the priorities in your own life and the successes you have already achieved can help reduce the need to “keep up with the Jones’” and allow to you be content with your own successes and not envious of others. Also remember that you can’t always judge a book by a fancy cover.

Observe Your Own Purchasing Habits – Any trip to the store should afford you the opportunity to observe your own spending habits as well as change your thinking about spending. If you are an impulse shopper, prepare yourself each time before entering the store and always bring a list of items you need, rather than fill your cart with wants. If you tend to hit the mall to deal with boredom or other life frustrations, opt to take a walk in the park to clear your head.

Transition from Credit to Debit – If you have a history of not being able to pay off your credit card balances each month, stop using credit and switch over to debit cards that withdrawn money directly from your bank account. Debit cards will not hold a balance over your head and you can only spend what you have or face the consequences of overdraft fees and other penalties.

Focus on Debt then Save – You’ll find it to be near impossible to start saving money when you still owe on debts.  Start by understanding how much you owe and make a plan to pay off the debt before concentrating on your plans for saving.

5 Money Tips for Financial Smarts 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.

Being Overly Restrictive – Most people start budgetting because they don’t have enough money, so they cut everything back to the bone. They take away all of their fun and entertainment out of the budget and have numbers written down that almost no one can live on. For the first two months that you budget, try not to dramatically change your spending habbits unless they’re out of control. Come up with reasonable approximations of what you spend on any given category each month, spend that much and nothing more. After a few months and you’ve got the hang of it, you will then have a good idea of where there’s waste and can make appropriate adjustments to how much you spend.

 Failin to Plan for Emergencies – You never know when your car is going to break down, a medical issue will come about, a job loss will occur, or you’ll find out something is wrong with your house. Everyone should have an emergency fund to pay for these types of emergencies. You should work to have at least 3 months of living expenses saved up to take care of these type of things.

Trying to Track Every Last Penny - A lot of people think they’re professional accountants and try to keep track of every last penny and where it goes each month when they start budgeting. Lets face it, it’s unrealistic to try to track every receipt and how much you spend. A great way to keep yourself in check without having to save receipts and keep track of every last purchase you make is to make use of the envelope budgetting system, in which you designate certain a amount of money for specific categories each month, such as groceries and gasoline, and then put that amount of money in those envelopes. You do your spending out of those envelopes and leave you checking account alone except to pay regular monthly bills.

Being Overly Optimistic – A lot of people want to see their budgets succeed and move them in a very positive direction. Many people are too optimistic about how much money they bring in. A person might plan for a big Christmas bonus whether or not they actually receive one or not. You’re only setting yourself up for dissapointment by creating an overly-optimistic and unrealistic budget. Be reasonable about what you expect to earn and spend each month.

Four Common Mistakes People Make When They Try to Budget For The First Time was created by and is property of American Consumer News.

Think about it. A shopping cart allows you to carry around more items in the store than you would have otherwise been able to. Since you have the capability to carry more stuff around the store, you usually end up taking a lot more stuff with you and spending money that you otherweise wouldn’t have on things you simply do not need. How many times have you been in a grocery store just to get a few things and then you didn’t get one or two of the less important items or an extra 12 pack of pop because you just couldn’t carry all of it? Not having a shopping cart subconciosuly forces us to only buy the most important things that we need at the current moment.

 If we go to a big box store and intend to purchase quite a few things for groceries or around the house, we tend to buy the things that were on our lists as well as a few other things that would be nice to have or make life a bit more convenient, even though we really don’t need them. We casually throw items in the cart because the bills going to be pretty big anway, so what’s the harm in one or two more items?

In some cases, using a shopping cart is inevitable, say if your purchasing groceries for a week for a family of four. In the case that you are a single person only buying groceries for yourself for the week, consider making it a rule for yourself only to carry a basket isntead of a cart. You will be able to fit more than enoug food in the basket to feed you for a week, and that way you won’t be tempted to purchase a bunch of junk food, soda and beer because you won’t be able to carry it to the counter. I’ve put this into practice in my own life for almost 6 months now and have never spent more than $30 each week on groceries.

If you do not absolutely need a shopping cart for your trek to the store, don’t take one. If you have to purchase a lot of items in the store, come up with a list before hand and resolve only to purchase on the list. This way you will be less tempted to make an impulse purchase or two. By limiting the amount we carry, we will be much less tempted to pickup other items that we quite frankly do not really need.

How Shopping Carts are Stealing Money From Your Wallet was created by and is property of American Consumer News.

There are no state or federal laws which require the leasing company to tell you the effective interest rate you are paying on your vehicle, and often times you are paying much more than you need to. With a traditional loan you could simply refinance it if you were stuck in a bad loan. It turns out that you can do the same thing with car leases if you have reasonably good credit. You will likely be able to refinance your lease, end up paying less on a monthly basis and even get out of the lease earlier. If you have a credit score of 720 or above and have a car lease, checking into refinancing your lease is definitely worthwhile.

There’s a website specifically designed to help people out in this situation. LowerMyLease.com will help you figure out whether or not it makes sense for you to refinance your lease and help you get the loan to make that happen.

They have a guide on their website which discusses the process:

1. Call your current lender and ask them for your current payoff without sales tax.
2. Check the current odometer reading on the vehicle, and pull out your original window sticker for the vehicle. It’s most probably in the glove box or with your orginal lease contract.
3. To find out your new payment options, select your vehicle and enter the current payoff amount and mileage.
4. If you find a new payment or term you like, then submit your credit application and get pre-approved. Here are some things to consider when re-leasing:
o A lower payment for any selected term
o The same payment for a shorter term
o A lower residual value which gives you more options during and at the end of the lease
5. We’ll re-write your lease with the new lease program you selected. The leases offered on LowerMyLease.com are from national financial institutions that you may already be doing business with.
6. New lease contracts are printed and sent to you for review.
7. Upon your approval, sign and overnight them back to us in the envelope provided.
8. We pay off your current lease and your new re-lease begins!

LowerMyLease.com has come up with a great service to help you get a better deal on the lease that you’re stuck in. It won’t always be a better deal, but it’s definitely worth checking into if you drive a leased vehicle.

Stuck in a Car Lease? Refinance and Save Big. was created by and is property of American Consumer News.