Financial Gooru

Why you are paying so much at the pump

2012-09-25T11:57:00.002-07:00

Breakdown of Gas Prices

When you pump $30 into your tank, that money is broken up into little pieces that get distributed among several entities. Gas is just like any other consumer product: There's a supply chain and several groups who are responsible for setting the price of the product. The media can sometimes lead you to believe that the price of gas is based solely on the price of crude oil, but there are actually many factors that determine what you pay at the pump. No matter how expensive gas becomes, all of these entities have to get their slice of the pie. According to the U.S. Department of Energy, here's an approximation of where each dollar you spend on gas goes:

Taxes: 13 cents
Distribution and Marketing: 8 cents
Refining: 14 cents
Crude oil: 65 cents

[source: DOE]
This is what the average breakdown looked like in April 2011. Let's look at those components in more detail.

Crude oil - The biggest portion of the cost of gas goes to the crude-oil suppliers. This is determined by the world's oil-exporting nations, particularly the Organization of the Petroleum Exporting Countries (OPEC), which you will learn more about in the next section. The amount of crude oil these countries produce determines the price of a barrel of oil. Crude-oil prices averaged around $35 per barrel (1 barrel = 42 gallons or 158.99 L) in 2004. And, after Hurricane Katrina, some prices were almost double that. In April 2008, crude-oil prices averaged around $104.74 per barrel. During that month, the price of oil reached a record price of almost $120 a barrel [source: DOE]. By May 16, prices had topped $117 per barrel [source: MarketWatch]. On May 22, markets in New York and London reported prices past $135 per barreland, and on July 11, oil hit an all-time high of $147 [source: Forbes, New York Sun]. Analysts speculated that everything from investment in oil futures to increasing demand from countries like India and China contributed to the spike in price.
Sometimes, gas prices go up even though there is plenty of crude oil on the market. It depends on what kind of oil it is. Oil can be classified as heavy or light, and as sweet or sour (no one actually tastes the oil, that's just what they call it). Light, sweet crude is easier and cheaper to refine, but supplies have been running low. There's plenty of heavy, sour crude available in the world, but refineries, particularly those in the U.S., have to undergo costly retooling to handle it.
Refining costs - The cost of refining diesel fuel can be considerably higher than the price of refining regular gasoline. To learn more about oil refining, read How Oil Refining Works.
Distribution and marketing - Crude oil is transported to refineries, and gasoline is shipped from the refineries to distribution points and then to gas stations. The price of transportation is passed along to the consumer. Marketing the brand of the oil company is also added into the cost of the gasoline you buy.
Taxes - Federal and state governments each place excise taxes on gasoline. There may also be some additional taxes, such as applicable state sales taxes, gross receipts taxes, oil inspection fees, underground storage tank fees and other miscellaneous environmental fees. Add that to the state excise taxes, and it can average 27.4 cents. It could be worse. In Europe, gas prices are far higher than in America because taxes on gas are much higher.
Station markup - Of course some of the money you spend at the pump does go to the service station. While some consumers blame high prices on station markup, service stations typically add on a few cents per gallon. There's no set standard for how much gas stations add on to the price. Some may add just a couple of cents, while others may add as much as a dime or more. However, some states have markup laws prohibiting stations from charging less than a certain percentage over invoice from the wholesaler. These laws are designed to protect small, individually-owned gas stations from being driven out of business by large chains that can afford to slash prices at select locations.

Average U.S. Gasoline Prices

Year	Price Per Gallon
1980	$1.22
1985	$1.96
1990	$1.22
1995	$1.21
2000	$1.56
2001	$1.53
2002	$1.44
2003	$1.64
2004	$1.92
2005	$2.34
2006	$2.63
2007	$2.85
2008	$3.32
2009	$2.40
Source: U.S. Bureau of Labor Statistics Consumer Price Index (CPI). Average Price Data, Gasoline All Types.

Gas prices also vary from state to state for several reasons. Taxes are probably the biggest factor in the different prices around the country. Additionally, competition among local gas stations can drive prices down. Distance from the oil refineries can also affect prices -- stations closer to the Gulf of Mexico, where many oil refineries are located, have lower gas prices due to lower transportation costs. There are also some regional factors that can affect prices.
World events, wars and weather can also raise prices. Anything that affects any part of the process, from the moment the oil is drilled, through refining and distribution to your car will result in a change in price. Military conflicts in parts of the world with lots of oil supplies can make it difficult for oil companies to drill and ship crude oil. Hurricanes have damaged offshore drilling platforms, coastal refineries and shipping ports that receive oil tankers. If a tanker itself is lost or damaged, or leaks its oil into the ocean, that will put a dent in the market as well.

What Causes Gasoline Prices to Fluctuate?

Have you ever wondered who’s at the throttle of the gasoline-price rollercoaster for the past several years?
With the price of gasoline having peaked at more than $4 per gallon in some areas, then falling to less than $2, it’s hard for consumers to understand – not to mention budget for.
The factors that determine the final price of gasoline are far-reaching and global – from local politics in developing nations to a natural disaster in a neighboring state. Other elements come into play as well.

Factors that influence gasoline prices

Supply of crude oil – Most crude oil that’s refined into gasoline is produced and sold by Oil Producing Exporting Countries – or OPEC. This cartel of 12 countries in Africa, the Middle East and South America uses a loose quota system to determine how much oil to produce and sell. One of OPEC’s goals is to stabilize oil prices by eliminating unnecessary fluctuations. However, its decisions about production, pricing and distribution affect the price of international oil – and, consequently, the price of gasoline.
Worldwide demand – The demand for crude oil in China, India and other developing countries has risen with their population, increased trade, growing internal markets and strong commodity prices. In less than five years, it is estimated that developing nations will account for nearly half of the global demand for oil, up from 36 percent in 1996.
Distribution network – Anything that interrupts the flow of petroleum through the distribution network can cause gas prices to rise, such as a natural disaster like Hurricane Katrina or political instability in major oil-producing countries like Venezuela, Iraq and Nigeria.
Value of the U.S. dollar – Oil is traded on the world market is U.S. dollars. When the value of the dollar declines in comparison to other major currencies, OPEC earns less per barrel of oil. To compensate, it may raise the price per barrel, thereby increasing the price of gasoline.
The market – One of the most complicated factors that affect gas prices is the oil trading market – actually, three different markets that all can play a role in the price of gasoline.

Contract market – The fate of most oil and gas is predetermined by contracts among oil companies, dealers, refineries and independent dealers.
Spot market – This market fills the gaps in the contracts market by matching companies with surplus oil to those that need more. Of the three markets, the spot market is the only one where actual barrels of oil are traded. It’s also where the best deals can be found because buyers and sellers are not bound by contracts. Thus, the laws of the free market are in effect.
Futures market – Crude oil is traded on the New York Mercantile Exchange, although contracts are rarely fulfilled. For instance, while more than 5 billion barrels of oil were reportedly traded on the futures market during a seven-year period, only 31,000 were actually delivered. Regardless, the fluctuation in the price of oil per barrel is driven by information that represents the state of the oil market. In most cases, consumer gasoline prices will mimic the trends of the futures market.

Common misconceptions about gasoline prices

Perhaps the biggest misconception about gasoline prices is that gas companies set them. However, since the companies own only about 5% of U.S. stations, their control over the price at the pump is minimal.
Another misconception is that gas stations like gas prices high. Not so. Profit margins at the pump are about 23 cents per gallon, regardless of the price per gallon. In addition, many stations are under contract to sell gas at a predetermined price, which may yield a profit of only a few cents on a dollar. And when gasoline prices increase, station owners feel the pinch because customers spend less on the store’s profitable convenience items.

How to save money couponing

2012-09-24T08:44:00.003-07:00

With gas prices rising, high unemployment, and inflation poised to spiral out of control, your talent for cutting household expenses is becoming more and more important. You can slash services like yard landscaping and premium cable channels (e.g. DIRECTV), and you can reduce your utility bills by using electricity, gas, and water more sparingly. But what about everyday necessities like feeding your family and operating your home?

The 4 Levels of Couponing
Level 1: The Casual Couponer
Level 2: The Generic Brand Store Shopper
Level 3: The Coupon Deal Shopper

Don’t buy it if it’s not on sale.

Combine the sale with a coupon.

Level 4: The Extreme Couponer

“Extreme couponing” isn’t as crazy as it may sound. You don’t have to let coupons dominate your life, and you don’t have to be embarrassed at the cash register. You just need to find the right moves to use coupons in conjunction with store sales and promotions, and then enjoy the satisfaction of getting items for free or close to free. It’s about timing, and not necessarily using a particular coupon just because you found it in that week’s Sunday paper. Instead of using it immediately, you’ll hold on to coupons until items go on sale, maximizing your savings and becoming an extreme couponer.

Buy 10 Butterball Turkey Bacons on two-for-$5 special: $25.00

Use your 10 manufacturer’s coupons: -$20.00

Use the $5 off $20 store coupon: -$5.00

Your total: FREE

5 Steps for Extreme Couponing

Gathering

Organizing

Grocery Shopping

Resources

Storage and Distribution

Step 1: Gathering
1. Sunday Newspaper
2. Online Printable Coupons

3. Grocery Stores
4. Manufacturers
5. Neighbors
Step 2: Organizing
1. Coupon Binder

You’ll have a portable container that you can move from the house to your car and carry into the store. Should you see an unadvertised sale or something on clearance, you can easily check to see if you have a coupon for that item and make an on-the-spot decision to buy or not.

You can make a note of which inserts your favorite coupons came from, so you’ll have an easy reference if you want to get more.

You can also keep a list of your stores’ coupon policies in the binder.

You’ll need to commit to clipping coupons and filing them. It’s going to take a while to get this organized. You’ll need some space to lay out all the coupons and cut them.

Expired coupons are harder to find in a binder organized in this manner. Once in a while, you’ll have to go through your binder and remove the expired coupons to make room for new ones. This audit will be a regular time commitment for you.

2. Whole Inserts

You can save plenty of time, especially if you date the front of the insert and arrange the pages for easy clipping.

These files are easy to maintain, since you can just wait for the whole insert to expire and then toss the whole thing in your recycling bin.

You don’t have to take your entire collection of coupons with you to the store – just the ones you clipped specifically for your trip.

It will be difficult to make quick decisions at the grocery store when you find an unadvertised sale or a clearance item. You won’t have time at the store to scan through all your inserts and start ripping coupons right there in the aisle.

If inserts aren’t the only source of your coupons, then you’ll still be searching for a system to organize other loose coupons that you’ve printed from your computer or picked up in stores.

Step 3: Grocery Shopping
1. Watch the Sales Ads
Dollar-off coupon: -$1.00
My total: $0.39 for two boxes
2. Set Your Limits
Lowest Price Ever: $0.10 a box;
Can frequently get for: $0.20 a box;
Don’t pay over: $0.30 a box.
Lowest Price Ever: FREE;
Can frequently get for: FREE;
Don’t pay over: $0.
3. Check Store Policies

Does your store ever double the value of coupons?

Do they limit the amounts of the doubled coupons?

Do they have a limit on how many coupons they’ll double?

How do they treat coupons used with a BOGO sale?

Do they have special discounts for seniors, students, or veterans?

Do they accept (or even double) competitors’ coupons?

4. Make Mistakes
5. Have Fun
Step 4: Resources
Couponing Websites

The Grocery Game, by Teri Gault

How to Shop for Free, by Kathy Spencer

The Krazy Coupon Lady, by Heather Wheeler and Joanie Demer

I Heart Publix, dedicated to saving at Publix Supermarkets

Totally Target, dedicated to saving at Target

Live Fabuless, by Jodie Furman

Money Saving Queen, by Sarah Roe

Coupon Databases
Tracking Software

January: We bought $2088.27 in groceries and toiletries while only paying $474.59, yielding a savings of $1,673.70 (77%).

February: We bought $2,369.40 in groceries and toiletries while only paying $402.85, yielding a savings of $1,966.55 (82.99%).

March: We bought $3,122.63 in groceries and toiletries while only paying $361.19, yielding a savings of $2,767.44 (88.43%). The percent savings just keep on growing!

Step 5: Storage and Distribution
Do’s

Clear away clutter in your kitchen cabinets. Throw away old small appliances you don’t use anymore. Use this opportunity to downsize your home and clear out old and expired items too.

Add shelves in your garage, wall-to-wall if you can fit them and still leave enough room for your vehicle.

Invest in a deep freezer. A chest freezer is more cost efficient and holds more than an equivalent-sized upright freezer.

Place like items together and keep things near where you’ll use them. Put the extra cereal in your kitchen, dishwasher and hand soap under the sink, and toilet paper in the bathroom closets. Excess – and you will have excess – goes in the garage.

Consume and organize your food and drinks by earliest expiration date, so you can avoid throwing things away. Keep expiration dates in mind while shopping, and don’t buy more than you can use before expiration. If you find no way to consume it all, you can always give it away to friends or donate to a charity.

Don’ts

Avoid a stockpile so large it doesn’t fit on your shelves. No deal is good enough to let it fill up your living space. You should be able to relax and watch TV without seeing grocery bags full of chips and soup cans.

Pick a few areas of your home that are off-limits, and don’t store anything there. Hallways are not storage areas.

Don’t be stingy. If you have more items than you can store, share with your family, neighbors, or a local charity.

Coupons.com
CouponCabin.com
CouponMom.com
RetailMeNot.com
SmartSource.com

The average American family spends between $500 and $1,100 every month on groceries, toiletries, cleaning products, pet items, clothes, and simple entertainment costs. You know you can make some sacrifices to get from the high-end of that range to the low-end. But can you really reduce or even eliminate some of these costs without giving up on good nutrition and hygiene? You absolutely can!

I still shake my head in disbelief when I look at what my family has saved in just the first three months of this year.

That’s a total of $1,238.63 that we’ve spent on $7,580.30 worth of name brand groceries, toiletries, and cleaning products. We saved 84% ($6,341.67 in savings) in three months without sacrificing quality using discount grocery coupons.

With the tips outlined in this article, it won’t take extreme time and effort for you to become an extreme couponer too.

Before I get into an awesome step-by-step guide to extreme couponing, let’s first take a look at the different types of couponers and assess which category you currently fit into:

I love snacks, so I recently printed out a coupon for $0.55 off of one Chex Mix 4.5 oz bag from Coupons.com. Now with coupon in hand, I’m ready to go save some money. But how much money I save will now depend on what level of couponing I’m at. Recent experience has shown me that there are essentially 4 levels of couponing that range from casual to extreme. Levels 1 and 2 are well known, but levels 3 and 4 are starting to become more popular. If you haven’t heard of these couponing strategies before, you could be missing out on a whole world of saving.

This is where many people find themselves today. Most of the time, a person will pay for a whole cart full of groceries while handing over less than 10 coupons. They end up normally saving a few bucks off the entire order. In the simple example of the Chex Mix coupon I have, I could walk into a grocery store or drug store and find the Chex Mix for $2.99 and hand them my coupon, allowing me to spend $2.44 after the 55 cents in savings.

Savings: Minimal

Many people also find themselves in this category. They’ve figured out that they could save more money overall if they buy the generic brand over the name brand even if a coupon was used on the name brand. By doing all their shopping solely for generic brands, they can easily save $200-$300 per month without clipping a single coupon. I can save more than $0.55 on my snack run if I throw the coupon out and buy Generic Mix at $1.49 a bag. In this example, the Generic Mix costs me $1.49 and saves me $1.50, a significantly better deal than if I were a Level 1 Couponer.

The problem for me here is that I prefer the name brand over the generic – it just tastes different to me. So are you out of luck if you’re in the same boat as me and prefer name brands? Don’t worry because there are still 2 levels left to go.

Savings: Good

Believe it or not, when the circumstances are just right, people can save even more money buying the name brand stuff than the generic brands. Items frequently go on sale, and when they do, the Coupon Deal Shopper capitalizes on the opportunity. They’ll combine a store sale with a manufacturer’s coupon, and get the item for pennies or even for free.

You know what happens when you align the Sun, the Earth, and the Moon all in a line? You get a solar or lunar eclipse, right? Well, that’s exactly what the Coupon Deal Shopper does. They set up little eclipses all over the place at different stores and walk away with items for pennies on the dollar. So if I wait for a sale, I can save even more money than buying generic.

For example, I happen to know that Walgreens frequently puts Chex Mix on sale for $0.99 approximately once a month. During this sale week, if I walked in there with my $0.55 cent coupon, I’ll pick up the item for $0.44 instead of $2.44 on a $2.99 item. That’s an 85% savings and way better than buying the Generic Mix!

The Coupon Deal Shopper saves 70% to 95% on everything they buy, because they follow two rules:

Saving at this level requires a little bit of effort. You must clip and organize your coupons, and be patient. By spending about 2-3 hours per week, you can save 70-95% on everything you buy at the grocery store and the drug store. Can’t do better than that, right? There’s still one more level to go!

Savings: Awesome

Did you know that you can use a manufacturer’s coupon and a store coupon on the same item? Well, you can. Did you know that you can use two coupons on a buy-one-get-one-free sale? Well, you can.

Setting up bigger and better deals is what the Extreme Couponer does. They take the same measures as the Coupon Deal Shopper but then they look for multiple deals. Why get just one deal when you can get three or four all at once? To this end, it’s not unusual for an Extreme Couponer to have 4 Sunday newspapers delivered to their home. Let me give you an example to explain why:

At my grocery store, Ken’s Steakhouse Ranch Dressing costs $3.29 for a 16 oz bottle. Sometimes it goes on sale for $1.65 per bottle. So what I do is use my four $1.00 off coupons from the Sunday newspapers during the sale, and get four bottles at $0.65 a pop. That’s how I combine two big deals at once and walk away with 80% savings multiple times. If you can get your hands on more coupons, go back in the store and do it again! The idea here is to stockpile your deals and get a lot of each item because it might be another month or so before this item goes on sale again, so buy a month or two’s worth at once.

Lastly, Extreme Couponers make good use of store coupons as well (i.e. the ones that say $5 off a $20 purchase). So you could walk into the store, buy at least $20 worth of great deals like these and take another $5 off the total. This simply makes a sweet deal even sweeter. It’s almost like you’re buying individual items in bulk at prices that are even better than buying in bulk. The ultimate savings scenario is to combine 3 types of coupons: store coupons, manufacturer’s coupons, and store sales all at the same time. Yup, that’s why we call this person The Extreme Couponer.

Savings: INCREDIBLE!

Now that you know what all the levels are, what level of couponer are you? Is it worth your time to become an Extreme Couponer to save 90-100% on everything you buy? If your answer is a resounding “Yes!”, read on for a step-by-step guide to learn the ins and outs of extreme couponing.

For example, suppose that Butterball Turkey Bacon normally costs $3.29 at your grocery store, and you find a $2 off coupon. If you used your coupon right away, you’d pay $1.29 and leave the store patting yourself on the back and thinking, “Not bad.” But you can do even better!

If you wait for a store to have a sale, you can really win out and find yourself saving much more. Imagine that you held on to the coupon for three weeks, and after the initial rush when everyone else used the coupon, the store is still trying to move more turkey bacon. Now it’s on special, with a two-for-$5 deal. That means the price is only $2.50 each, so you can use your $2 coupon and pay just 50 cents instead, saving $2.79 just by holding out.

That’s tough to beat, but this example can go even further. Suppose that the store issues a general coupon for $5 off a $20 purchase. Sound familiar? If you collected a few extra copies of that original $2 coupon, say ten of them, you could follow this simple math for incredible savings:

You had $25 worth of coupons, but your receipt will show you the truly good news that you saved $32.90, since that’s the full retail value of the bacon you got for free. That’s the kind of thing that extreme couponing families do everyday. They’re not covering the kitchen table with coupons and letting their lives get taken over by newspaper inserts. They’re just using coupons and store deals together to get the best discounts, and they’re walking off with at least 90% in savings.

There’s no magic to it, but extreme couponing does require a bit of patience and some trial and error. Use this step-by-step guide to reduce the “error” part of that equation.

You’re going to need a lot of coupons, but you don’t need to go out of control. The smart move is to get multiple copies of the same coupon, so that if you come across a deal you can maximize your savings. Think of coupons as “currency,” because at the end of the day, you’re going to use them like cash. Acquire as many as you can, using these top sources:

Coupon inserts and local ads are the best places to start. Look for coupon inserts with titles like “Smart Source,” “Red Plum,” and “Proctor & Gamble.” The more copies of a coupon the better, so I recommend investing in at least four copies of the newspaper. This way, when you find your favorite deals, you’ll have four coupons. Alternatively, if you’d rather not scour through multiple Sunday newspapers, you can actually buy coupons (for much less than their savings value) and have them mailed to your house using the site, The Coupon Clippers.

Insider’s Tip: Write the date on the front of the insert, so it’ll be easier to find two or three weeks from now, and you can track down extra copies once you find a good deal.

Just a few years ago, the Internet might not have been worth your time for finding coupons. You had to dig around for far too long to find the right deals in your area. Now, individuals and various websites are curating the best deals available and, better yet, setting up local deals to get in on coupons and big sales. You can get alerts about manufacturer’s coupons and find links to coupons that you’ll just need to click, print, and file. Usually, on sites like Coupons.com, you can only print one or two copies of a coupon, but it’s still worth it.

Insider’s Tip: Don’t print everything you find just because coupons are “free.” Filter yourself and only print what you need to avoid excess clutter and wasted ink and paper.

Have you ever seen those small devices in the aisles that blink and share coupons? Or have you seen a stack of “Tear here” coupons near the entrance of your local market? Take advantage of these in-store sources of coupons, and don’t ignore the store’s free coupon booklets either.

Insider’s Tip: While coupon booklets are often sitting out in plain sight, some stores require you to take some initiative. If you don’t see them near the door, ask at the front desk.

If you write a letter to the manufacturers of your favorite items and tell them how much you like their products, they’ll often send you coupons – and free samples of new stuff that you haven’t tried yet. Today, I received a coupon for one free three-pack of JELL-O Temptations, worth $3.30. All I had to do was write to Kraft and ask.

Insider’s Tip: Don’t let it get you down when some of your letters go unanswered. You’ll have a few duds, but more often than not, companies will respond with higher-value coupons than you find in conventional places.

Even if you pick up four Sunday newspapers, you can get some extra free coupons by building a rapport with your neighbors and asking them for their coupon inserts. Plenty of people buy the paper and then scrap the money-saving inserts. Recycling is great, but it’s even better if you can rescue some deals before they’re carted off.

Insider’s Tip: I’ve heard stories of couponers whose neighbors have agreed to give them their coupon inserts at the door. After a walk up and down the block, they have around ten copies of great coupons they can use.

With all of these resources, you’ll have a wealth of coupons. But where will you keep them without losing track or letting them take over your home (and your life)?

The trick to successful coupon organization is to find a system that you’re comfortable with and will stick to. You need to know which products you have coupons for, and when your coupons expire. You don’t have time for a frustrating, disorganized pile cluttering up your coffee table. Since there are plenty of options available, think about the pros and cons of two popular choices.

In a coupon binder, you’ll use A to Z dividers and baseball card protector sheets. This thick binder will hold individual coupons, sorted by the first letter in the product’s name. You can also use pocket pages for coupons that expire quickly (within a day or two of the day you find them) or coupons that are only valid at a particular store. The coupon binder is simple and handy, but it has a few drawbacks.

Advantages of a Coupon Binder

Disadvantages of a Coupon Binder

If you choose the whole inserts method instead, you’ll file away the coupon inserts in their entirety. You don’t have to clip a single coupon until you’re ready to go shopping. Even then, you’ll clip only the ones you need. You’ll just collate the inserts you have so that identical coupons are all grouped together.

If you have four identical “Smart Source” inserts, for example, arrange the pages so that when you’re ready to clip them, you get all 4 coupons at once. You can use a hanging file folder system in a filing cabinet, portable bins, or a large accordion folder to hold the pages, and you’ll build a coupon database to keep a record of what’s in the file. You’ll save time over clipping and filing, but you’ll give up some advantages too.

Advantages of Inserts

Disadvantages of Inserts

In short, the whole inserts method saves you time, while the coupon binder method puts you in more control at the store. So now that you have your coupons and they are organized, it’s time to plan a shopping trip.

Especially for your first shopping trip as an extreme couponer, I suggest pursuing only one deal. Keep it simple and get comfortable at the register. Once you’re familiar with the process, you can reach for bigger deals and more of them. But for this first target, let it go something like this:

Take a look at your grocery store’s weekly ad to see what’s on sale this week. If you see what looks like a good sale, check to see if you have a coupon for that item. Do the math and determine if the new price is a good enough deal for you. If it is, compile your multiple coupons and get as many items as you can in a single transaction.

Buy-one-get-one (BOGO) deals are great because sometimes you can use a coupon on the free item too. My local grocery store, for example, is running a BOGO deal with Mueller’s Pasta 16-ounce packages priced at $1.39 each. I have a coupon for $1 off two Mueller’s products of 12 ounces or more. Take a look at the math:

Two boxes of pasta on sale/BOGO: $1.39

That means I’m paying under 20 cents per box, for a total savings of 86% off, and I have ten coupons. I’ll get 20 boxes of pasta for $3.90.

If you’re looking to more easily match sale items at your local grocery store with their corresponding coupons, try out a service like Savings Angel. There’s a monthly membership fee involved, but it can help you save a lot of money and time by automatically alerting you of big sales and coupons for the items you want.

When you’re looking for deals like this one, you need to figure out if the final price is worth it to you. I’d take the pasta for 19 cents a box, but at 35 cents a box, I’d wait. Why? Because as you get more familiar with extreme couponing, you’ll see price points that you know you can beat, and others that you know you won’t find ever again. For instance, I’ll never pay for toothpaste, razors, deodorant, body wash, or shampoo ever again because I know I can find coupons to knock the cost down to nothing.

Decide what prices you won’t go over, and if a sale-coupon combo doesn’t get you there, just wait for a better sale. Keep your target prices in a composition notebook and mark the best deals you’ve gotten on common items. Using the pasta and toothpaste again as examples, my entries look like this:

Periodically check your stores’ coupon policies. Every grocery chain is different in how their coupon policy works, so it’s good to stay in the know on these topics:

Often, cashiers are unaware of policy changes, so they might let you use your coupons today, but tomorrow a different cashier may reject them. Some look the other way on expired coupons. Extreme couponers keep a copy of the stores policy to help “educate” misinformed employees. Don’t be rude about policies, but be aware of the rules and make friends with a store manager and some staff members.

Occasionally, you may learn at the register that your coupon plan doesn’t work out the way you expected. It could be that you bought the wrong size, or the coupon won’t scan properly. Remain calm and be polite. Mistakes happen, whether they’re on your shoulders or they’re the store’s fault. If you can’t resolve the issue, tell the cashier to void the item or call the manager. Just remember that you are not obligated to buy the item simply because you took it off the shelf. If the deal does not work out in your favor, do not buy the item at all. You are the customer, and you should never feel guilty about trying to get a good deal.

Saving money shouldn’t be a chore. It’s a game. When you set up deals, go after them, and take home your winnings, you’ll experience some pretty good emotions. Some couponers get a rush of adrenaline at the checkout lane, and others have reported having a “coupon high” afterward. It’s a pretty good feeling when the cashier and the bagger’s jaws drop and they only utter, “Wow!”

So that’s how you set up your first deal and the subsequent deals. Next, take a look at some extra resources to help spur you along the path of extreme couponing greatness.

Plenty of websites are dedicated to helping you save money at the checkout lane. Coupon compilers scour the news and inserts to prepare deals for you before you even get your paper. They’ll tell you what items to get and where, and which coupons you’ll need. In addition to Savings Angel, which I mentioned earlier, some of the great sites dedicated to extreme couponing (that my family uses first-hand) are:

Many sites also maintain coupon databases, which are useful tools, particularly if you use the whole insert method. A database lists coupon publishers, product manufacturers, stores, values, and expiration dates.

For example, if I saw a sale on Pam cooking spray and wanted to know if I had or could find a coupon for it, I’d type the product name in the search box of the coupon database and get an abbreviated response like, “Pam cooking spray, any: 04-03-11 SS. $1/2.” The SS tells me that it’s a “Smart Source” insert, and the publication date is from April 3, 2011. I also know it’s a dollar-off-two coupon, so I can determine if it’s worth cutting out. It all depends on the sale and other combined offers. The coupon database that I personally like to use maintained by Hot Coupon World.

Want to know how much you’re saving over time? Unless you’re a spreadsheet whiz, you’ll need some tracking software. I recommend Coupon Sense, which will notify you of deals in your local zip code – local offers that other websites don’t usually find. It also has tracking software so you can enter your receipts from the stores you shop at most often. At $10 per month, this service really pays for itself. I’m already in awe at how much my family saved during the first quarter of this year:

To summarize, we bought a total of $7,580.30 worth of groceries and toiletries, and only paid $1,238.63, leading to a grand total of $6,341.67 in savings (84%)!

It’s clear that getting great deals and tracking your savings is a lot of fun and motivating. But what do you do about all the stuff you bring home? This brings us to our last step.

When you start getting extreme savings, you’re going to stockpile items very quickly, and you’re going to need more space. Organization and free space management are two skills that you’ll want to develop over time if you’re going to have a lot of stuff on hand.

You can easily pick up more than a month’s supply of frozen meat and vegetables, so a deep freezer, for example, is a must. Set up a cabinet or shelving unit in your garage to conveniently store the hundreds of canned goods you’re going to stack up. Your may be coupons organized, but if you don’t stay ahead of storage space, all of your free items will overrun your house. Keep this list of do’s and don’ts in mind:

Coupon websites:

Coupons.com

Why the experts like it: Coupons.com offers as wide a variety of timely coupons as you'd find in the grocery shoppers' gold standard: the Sunday paper, says Dworsky. Phil Lempert, founder of news site Supermarket Guru, praises the site's simple layout, which makes it easy to browse available coupons, and then print them out for in-store use. Enter your zip code for area-specific deals. There's just one minor drawback: "There are still some retailers that will not accept Internet coupons," cautions Lempert. Check that your supermarket does so before downloading the site's coupon-printing software.

Sample deal: Save $2 on two jumbo packs of Huggies Supreme diapers.

CouponCabin.com

Why the experts like it: CouponCabin.com keeps its discount fare fresh, says Linda Sherry, a spokeswoman for Consumer Action, a consumer advocate. Staffers update deals three times a day, and frequently check each coupon code to ensure it works. Sections for "most-used coupons" and "favorite deals" point shoppers toward the best ongoing promotions at online retailers. An added bonus: A weekly email newsletter alerts consumers to the latest deals every Monday.

Sample deal: Link to Eddie Bauer's web site through CouponCabin.com and use coupon code "Perfect" at checkout to save 30% and receive free shipping. Offer expires Dec. 31.

CouponMom.com

Why the experts like it: CouponMom.com covers a lot of ground, listing online coupon codes, printout coupons and free samples, among other types of discounts. And while other sites are riddled with offers and banner ads, CouponMom.com's simple design makes finding discounts easy, says Garen Daly, host of Massachusetts-based radio show "Frugal Yankee." Deals are reliably accurate, too, adds Tawra Kellam, founder of frugal living newsletter Living on a Dime. Members can find all available coupons from several sources using the virtual coupon organizer. Sign up for email alerts on sales at favorite retailers, or on a shopping-list staple like the kids' favorite brand of peanut butter.

Sample deal: Link to discount gift certificate site Restaurants.com through CouponMom.com and save an added 40% on any restaurant gift certificate order. (Shoppers pay $6 for a $25 gift certificate, instead of the regular already discounted rate of $10.) Ongoing deal.

RetailMeNot.com

Why the experts like it: RetailMeNot.com's dedicated community is what makes this site stand out. Users indicate whether a discount code worked for them or not, helping shoppers quickly filter out bad deals, says Hunt. They also add comments, pointing out when a code last worked, or any strings attached. "It's pretty darn reliable," she says. Email alerts notify you when new codes are posted for your favorite retailers.

SmartSource.com

Why the experts like it: SmartSource.com merges local store sales and a wide array of printout coupons and online deals to help consumers maximize savings, says Lisa Lee Freeman, editor in chief of Consumer Reports' ShopSmart magazine. The selection is great, and entering your zip code yields even more deals specific to your area. (As with Coupons.com, check that the supermarket accepts printout web coupons before downloading the software.)

America's Dept andFiscal Cliff: What it means to you and how to be ready for it

2012-09-16T16:13:00.003-07:00

The Fiscal Cliff Explained

“Fiscal cliff” is the popular shorthand term used to describe the conundrum that the U.S. government will face at the end of 2012. U.S. lawmakers have a choice: they can either let current policy go into effect at the beginning of 2013 – which features a number of tax increases and spending cuts that are expected to weigh heavily on growth and possibly drive the economy back into a recession – or cancel some or all of the scheduled tax increases and spending cuts, which would add to the deficit and increase the odds that the United States could face a crisis similar to that which is occurring in Europe.

The oncoming fiscal cliff is a concern for investors since the highly partisan nature of the current political environment could make a compromise difficult to reach. This problem isn’t new, after all: lawmakers have had three years to address this issue, but Congress – mired in political gridlock – has largely put off the search for a solution rather than seeking to solve the problem directly. Republicans want to cut spending and avoid raising taxes, while Democrats are looking for a combination of spending cuts and tax increases. Although both parties want to avoid the fiscal cliff, compromise is seen as being difficult to achieve – particularly in an election year.

The most likely result is another set of stop-gap measures that would delay a more permanent policy change until 2013 or later. The election will almost certainly have an impact on the direction of future policy, particularly if one party earns a decisive victory. Nevertheless, the non-partisan Congressional Budget Office (CBO) estimates that if Congress takes the middle ground – extending the Bush-era tax cuts but cancelling the automatic spending cuts – the result, in the short term, would be modest growth with no major economic hit.

Among the laws set to change are the end of last year’s temporary payroll tax cuts (resulting in a 2% tax increase for workers), the end of certain tax breaks for businesses, shifts in the alternative minimum tax that would take a larger bite, the end of the tax cuts from 2001-2003, and the beginning of taxes related to President Obama’s health care law. At the same time, the spending cuts agreed upon as part of the debt ceiling deal of 2011 will begin to go into effect.

Possible Effects of the Fiscal Cliff

The effect on the economy could be dramatic. While the combination of higher taxes and spending cuts would reduce the deficit by an estimated $560 billion, the CBO estimates that the policies set to go into effect would cut gross domestic product (GDP) by four percentage points in 2013, sending the economy into a recession (i.e., negative growth). At the same time, it predicts unemployment would rise by almost a full percentage point, with a loss of about two million jobs. A Wall St. Journal article from May 16, 2012 estimates the following impact in dollar terms: “In all, according to an analysis by J.P. Morgan economist Michael Feroli, $280 billion would be pulled out of the economy by the sunsetting of the Bush tax cuts; $125 million from the expiration of the Obama payroll-tax holiday; $40 million from the expiration of emergency unemployment benefits; and $98 billion from Budget Control Act spending cuts. In all, the tax increases and spending cuts make up about 3.5% of GDP, with the Bush tax cuts making up about half of that, according to the J.P. Morgan report.” Amid an already-fragile recovery and elevated unemployment, the economy is not in a position to avoid this type of shock.

The cost of indecision is likely to have an effect on the economy before 2013 even begins. The CBO anticipates that a lack of resolution will cause households and businesses to begin changing their spending in anticipation of the changes, possible reducing GDP by a full half-percent in the second half of 2012.

Another way of looking at it:

Federal Reserve Chairman Ben Bernanke and a number of observers have used the term “fiscal cliff” to describe several big fiscal events set to occur in the U.S. at the end of this year and in early 2013. Among them:

The expiration of the Bush-era tax cuts at the end of 2012, including current lower tax rates on capital gains, dividends, income, and estates, as well as number of other measures.
The expiration of fiscal stimulus measures, such as the payroll tax cut and extended unemployment benefits.
Spending cuts scheduled to be triggered automatically in January 2013 as a result of the failure of the deficit reduction super committee last year.

Depending on estimates, the impact of all these actions taken together would be a fiscal shock on the order of $300 billion to $600 billion in just one year. Such policies would reduce the budget deficit and begin to address the nation’s increasingly worrisome debt situation. However, economists generally agree that allowing the fiscal cliff to take effect in full, at the same time, could have a substantially negative impact on the economy in 2013. But that isn’t necessarily going to happen. I see four possible scenarios.

Scenario 1: punt

A likely scenario is that Congress and the president agree to punt the issue into 2013. If this occurs, the tax cuts will not expire, tax increases won’t take effect, and the spending cuts will be delayed until after the presidential inauguration and new Congress arrives in 2013.

Scenario 2: modest compromise

Congress and the White House reach compromises on some tax and spending provisions, with the election having a significant impact on what those compromises might be.

Scenario 3: over the cliff

A less-likely scenario, I think, is that Congress and the White House fail to reach any compromise whatsoever and are unable even to agree on how to delay the looming measures. The economy goes over the cliff.

Scenario 4: grand bargain

In my view, the chance of a grand bargain taking place after the election and before the end of the year is a long shot. In this scenario, Congress and the White House would reach a deal addressing tax, spending, and fiscal issues for the medium to long term.

In addition to the fiscal cliff, the U.S. will again approach the debt ceiling early next year. While the sequence of events puts the debate over the fiscal cliff before the debt deadline, the two issues are likely to be intertwined.

The outcome of the 2012 elections matters, but the resolution of these issues is tough regardless of whether Democrats or Republicans are in control. That’s because they reflect longstanding philosophical differences between the parties about the proper role and size of the government, and how to grow the economy.

Videos:

More Sources:

By WSJ Staff

Here are some answers to common questions about the “fiscal cliff” facing the U.S. economy. This is a revised version of the original post published earlier this year.

What is the “fiscal cliff”?

The fiscal cliff is the combination of large spending cuts and tax increases that are scheduled to be automatically enacted at the start of 2013. Bush-era income-tax cuts will expire for tens of millions of Americans, and billions of dollars of spending cuts will take effect because Congress couldn’t reach a deal last year to reduce the deficit by at least $1.2 trillion over 10 years. Democrats want a combination of spending cuts and tax increases, while Republicans want to cut spending, but don’t want to raise taxes. Both want to avoid the fiscal cliff, because it forces severe cuts, particularly in defense.

What taxes and spending are affected?

A payroll-tax holiday ends, which means a tax increase for workers of as much as 2% of wages. Income-tax rates revert to pre-George W. Bush levels, rising not only for the rich but for nearly all taxpayers. Across-the-board cuts in domestic and, particularly, defense spending are triggered.

What is the immediate cost to the economy?

The sudden rise in taxes and cuts in spending would have a harsh impact. In all, according to an analysis by J.P. Morgan economist Michael Feroli, $280 billion would be pulled out of the economy by the sunsetting of the Bush tax cuts; $125 million from the expiration of the Obama payroll-tax holiday; $40 million from the expiration of emergency unemployment benefits; and $98 billion from Budget Control Act spending cuts. In all, the tax increases and spending cuts make up about 3.5% of GDP, with the Bush tax cuts making up about half of that, according to J.P. Morgan.

How would this impact growth?

The nonpartisan Congressional Budget Office projects that if the tax increases and spending cuts go into effect, the economy would contract at a 2.9% annualized rate in the first six months of 2013 and the unemployment rate would rise to 9.1% at the end of next year. The jobless rate was 8.3% in July. If the spending cuts and tax increases are averted, the economy would grow at an anemic 1.7% next year and unemployment would fall slightly to 8.0% by the end of next year.

.How worried is the Fed?

Federal Reserve Chairman Ben Bernanke has warned lawmakers about the potential effect of the “fiscal cliff,” adding that “there is absolutely no chance that the Federal Reserve would be able to have the ability whatsoever to offset that effect on the economy.” The Fed has been concerned about the fiscal cliff all year. In the minutes of its April meeting, for instance, the Fed said that if lawmakers don’t reach agreement on a plan for the federal budget, “a sharp fiscal tightening could occur at the start of 2013.” That uncertainty “could lead businesses to defer hiring and investment” and weigh on economic sentiment, officials worried at the meeting. Agreement on a long-term plan could alleviate some of that uncertainty. On Wednesday, the Fed released minutes from its July 31-Aug. 1 meeting, in which it said participants see “a sharper-than-anticipated U.S. fiscal consolidation” as a “significant downside” risk to the economic outlook.

What is the state of play in Congress currently, and what are some possible scenarios?

No final action is likely until the end of the year, when hitting the fiscal cliff is imminent, because of partisan divisions in Congress and the political risk of taking tough votes on taxes and spending ahead of the November elections. In the short term, House leaders plan a vote to extend Bush-era tax levels for all taxpayers temporarily, possibly for one year, to give the next Congress time to work on overhauling the tax system to make it more competitive with other countries. That pre-election vote likely will include a fast-track mechanism so the eventual tax overhaul will get an expedited vote next year, and won’t get hung up by parliamentary maneuvering. The badly divided Senate doesn’t appear likely to take a vote on basic tax rates until after the election. A big question is whether and how lawmakers in a lame-duck session will seek to soften the blow of scheduled spending cuts

http://blogs.wsj.com/washwire/2012/08/22/qa-what-is-the-fiscal-cliff-2/

How to prepare:

Now there are many ways to prepare for this. This is just what I think people should do to prepare.

Have a savings plan just in case.

Get something besides fiat currency

Get out of any debt you may have

Get some other type of fiat currency ex Swiss franks yen ect even maybe bitcoin

Keep your eyes on the news. In cases like this we will never know what will happen or what can happen but it pays to be prepared so keep your eyes and ears open and adopt as things progress.

Learn a skill and trade just in case. We never know how we will end up we might make it or we might have to resort to stone-age way of life. Who knows for sure but learn something a craft you can do with your hands. Like welding, carpenter , architect and so on so forth.

Have gold, silver, diamonds, rubies ect. You never know what will be valuable or what will remain valuable have those things never really loose value.

Learn to live off the grid if need be. Again you never know these days what will happen.

And finally use your best judgment when it comes to this. You know what is best for you. Not me or anyone else. Use your best judgement and adopt and over come. You can not prepare for everything being able to adopt is key and a way of life. While you can try your best you just never know what life will throw at you.

Traveling and Tipping where you travel

2012-09-16T15:54:00.004-07:00

Traveling:

When traveling always a good idea to plan ahead. Look at all the place around where you will be staying. To get best rate always remember to shop around. Not just on one site but on many different sites. Even the ones that compare everything side to side do not always just trust those. Look around you will never know where a good deal will come from. Also biggest tip when traveling do not carry any important paper work with you aka social security card. I have come to find out many people for some odd reason always have it in their purse or wallet. With that said leave it at home! And if you can depending where you are traveling to wait until you get to your destination to get the country's currency. Unless you know rates and are keeping track of currency exchanges and know what you are doing then you can probably just do it whenever. I found it easiest to get some here in the states and the rest where ever I might be going.

Also know you seasons and best and worst times to go. Depending where you are going fall or winter might be the best season and summer the worst. Or depending on what you are looking to do in that area. Some places in summer like Switzerland are best during winter and great to relax during the summer. Or Germany I find it best to go during fall for the festivals like October Fest. Different countries have different things going on during different times of the year. Do your research to find out the best times to be there.

Also make sure if your going abroad to get your passport way ahead of time. It takes 6 months to a year to get and some times a bit longer depending on your situation. I have heard people getting them a lot sooner or later again just give yourself a lot of time so you don't rush and stress out. That way you can focus on the trip and not getting the passport.

Tipping in different countries:

Here is a good picture I have found that is good guide to how to tip in different countries. When going to a different country it is always good to do a little research before going.

Traveling tips:

Travel docs (passport, credit card, ID)

deodorant

2 pairs of shorts

2 T-shirts

2 pairs underwear

swim trunks

1 book

journal and pen

camera, charger

Many of the tips were about packing: how to pack light and what items are essential or useful. What follows are some of the best, but be aware that there may be contradictory tips — choose the ones that will work best for you.

Pack as light as possible. Ask the simple question: “Do I want it or do I need it and if I need it am I will to cart it around?” There is little you really need when you travel.

Travel with a light backpack. If you are moving between places, backpacks leave your hands free to hold their hands.

Pack just a few clothes with only a couple complimentary, solid colors — no patterns. Black is a good idea if you need to be able to dress up and be casual.

Pack only what you can carry on to the flight.

Put everything you want to bring in a pile and slowly strip away things that aren’t necessary.

Leave the laptop behind, as well as blackberry and any other tech gadget. For computer addicts, being away from the internet’s constant flow of data for a few days recharges and relaxes you in ways that you never experience at home.

Bring along a small, foldable umbrella to protect against the UV rays of sunlight and possible rain.

Most toiletries can be found easily in your destination country.

If it’s something you think you can buy there more cheaply than at home, then don’t bring it (especially if it’s something you don’t already have).

Bring one book, and when you’re done, find a book-exchange and trade it for a new one.

In Asia, sarongs are a traveler’s best friend! A sarong works as a towel, a skirt, a makeshift bag, a scarf, a sheet. They’re especially good to have if you’re traveling low-budget, staying in hostels or guesthouses, which often don’t offer towels or even top sheets. The best thing is that they dry really, really quickly, even when it’s humid. A wet towel can take all day to dry in the tropics, and if you have to stuff it in your bag before it’s dry it can get all dank and midewy, and so can all your stuff.

Get one of those totes or bags that fold up into a small package to slip into your backpack. You can use this to collect your souvenirs.Alternatively, mail your purchases home as you go. This reduces what you must carry around with you, what you have to list for customs.

Bring old clothes and undergarments and dispose of them each day leaving more room for momentos to bring home if you choose. It also cuts down on items that need frequent washing while away.

Take baby wipes. And lots of Ziploc bags.

Don’t travel with anything in your pockets except your passport and wallet. You won’t have to dig everything out of your pockets every time you go through security. Sitting in the plane is a lot more comfortable as well. Make sure your wallet is in your front jeans pocket. Sitting on your wallet for long periods of time will put your back out of alignment.

Photocopies of sections of guidebooks so at the end of a leg of trip the copy goes in the trash.

Take a photocopy of all your credit cards, passport and any other valuable document you have. Write down the emergency phone number for each credit card beside its photocopy. Leave this with a neighbour or family member along with your itinerary. Should you have your wallet and bags stolen and be only allowed to make one phone call, call this contact person who would be able to cancel your credit cards etc. for you. Alternatively, instead of photocopying your important documents consider scanning them and mailing them to yourself. That way you can always access these documents. Another reader suggested that you should encrypt documents if you email them to yourself.

Pack only high-tech fabrics, the kind that dry quickly so that you can do a wash in the sink. You can get away with 2 pairs of socks for a 2 week trip by rinsing out the dirty pair at night. High tech fabric means it’s dry by the next morning. Cotton will stay soggy for days.

Tilley makes underwear you can wash in the evening, and it will be dry by morning. You only need two pair, or even one if you are sure of finding somewhere to wash it!

Tip for quick drying: roll a towel over wet fabric,and squeeze tightly.

Bring a small amount of foreign currency to cover incidental expenses upon arrival, then change the rest in your destination country, as exchange rates are usually more favorable.

Aside from what to pack, there were some great tips submitted about what to do when you get to your destination (along with some tips en route to the destination):

Don’t overplan your trip. Keep your travel itinerary fluid, so that you can soak up the atmosphere in each place. Leave room for the serendipitous and when plans don’t work out, treat it as an opportunity!

Arrive earlier than you think is necessary — for domestic travel, try to arrive at least 2 hours before flight time; on international, make it three. This reduces the stress of waiting in a long security line as the time of your departure inches ever closer, and those desperate rushes to your boarding area. Besides, a relaxing drink at one of the restaurants is a lovely way to start a vacation!

Take time for naps. Seriously.

Smile a lot and talk to the locals.

Eat, eat, eat and savour the flavors.

Don’t get caught up with sights. Plan some must-dos and leave the rest to chance.

Wander around at night and stay open to the crazier elements of the culture.

Get lots of massages.

Prepare for security check in: Wear slip-on shoes; don’t wear a belt with metal; put the jacket or sweater in your carry-on before you get to security; have your electronics on the top of your carry-on along with the plastic zip-lock bag with your liquids so you don’t have to search through your bag to find them (and then repack after you go through security).

Split your cash and financial assets up. Credit card in one pocket. Some cash in another. Some in a hidden backpack pocket. Some in your shoe(s). Some in a money belt. Go to the bathroom and enter a stall before taking out cash from any of these places.

Don’t bring all your cash/credit cards etc. on you when you go out. Leave some in a safe at the hotel, and leave the extra credit cards back home.

Keep a card on you featuring your embassy’s #, some local friends’ numbers.

Get up early. In hot climates, this will help you avoid the heat of the day; in any climate, it will help you avoid the crowds and get more out of your day at a more leisurely pace. Equally, do the thing you really want to do first, as often plans go awry as the day goes on.

You shouldn’t try and see everything in a given place. In fact, you’ll probably have a better time if you focus on meeting great people (instead of going to great places): visits to great places will naturally following if you meet the right people during your travels.

Try to stay away from big tourist spots (unless there’s something you REALLY want to see). meeting locals, doing the things they do, and eating the things they eat always makes for a better stay. If you have any friends there, ask if you can stay with them for a short while; that would give you a true local experience.

Sign up for the Smart Traveler Enrollment Program so the State Department can better assist you in an emergency: Let us know your travel plans through the Smart Traveler Enrollment Program, a free online service a https://travelregistration.state.gov. This will help us contact you if there is a family emergency in the U.S., or if there is a crisis where you are traveling. In accordance with the Privacy Act, information on your welfare and whereabouts will not be released to others without your express authorization.

Sign passport, and fill in the emergency information: Make sure you have a signed, valid passport, and a visa, if required, and fill in the emergency information page of your passport.

Leave copies of itinerary and passport data page: Leave copies of your itinerary, passport data page and visas with family or friends, so you can be contacted in case of an emergency.

Check your overseas medical insurance coverage: Ask your medical insurance company if your policy applies overseas, and if it covers emergency expenses such as medical evacuation. If it does not, consider supplemental insurance.

Familiarize yourself with local conditions and laws: While in a foreign country, you are subject to its laws. The State Department web site athttp://travel.state.gov/travel/cis_pa_tw/cis/cis_1765.html has useful safety and other information about the countries you will visit.

Take precautions to avoid being a target of crime: To avoid being a target of crime, do not wear conspicuous clothing or jewelry and do not carry excessive amounts of money. Also, do not leave unattended luggage in public areas and do not accept packages from strangers.

Contact US Embassies in an emergency: Consular personnel at U.S. Embassies and Consulates abroad and in the U.S. are available 24 hours a day, 7 days a week, to provide emergency assistance to U.S. citizens. Contact information for U.S. Embassies and Consulates appears on the Bureau of Consular Affairs website at http://travel.state.gov. Also note that the Office of Overseas Citizen Services in the State Department’s Bureau of Consular Affairs may be reached for assistance with emergencies at 1-888-407-4747, if calling from the U.S. or Canada, or 202-501-4444, if calling from overseas.

Prepare for a financial Doomsday

2012-09-10T20:42:00.001-07:00

Many of us are preparing for the end of times; because as we all know it it is a matter of when not if. While many of us out there are preparing for the complete collapse of the world as we know it not many of us are preparing for a Financial Doomsday which will probably happen sooner than nature going haywire on us. So how exactly do we prepare for a financial Doomsday/ Economic collapse. Through intensive research I have found way that I think will help anyone survive and Economic/ Financial Doomsday.

Save Money

This one is a bit of a obvious one but I have to put it out there. A shockingly high number of American families are operating without any kind of financial cushion whatsoever.

-According to a Harris Interactive survey taken in 2010, 77 percent of all Americans are living paycheck to paycheck.

-According to one recent survey, one out of every three Americans would not be able to make a mortgage or rent payment next month if they suddenly lost their current job.

This is one reason why so many Americans have lost their homes and why so many Americans have fallen below the poverty level in recent years. They simply had no cushion.

Last year, 2.6 million more Americans dropped into poverty. That was the largest increase that we have seen since the U.S. government began keeping statistics on this back in 1959.

Don't let this happen to you. At a minimum, everyone out there should have a cushion that will cover at least 6 months worth of expenses. Preferably, you should have a cushion that will last you at least a year or longer. I know that sounds like a lot but trust me you will love having this around in case something does happen to you and your family.

The easiest way I found to do this is I used to buy a cup of coffee from Quick Trip every morning, it would cost me with tax 2.02 (it was their medium size I think if I remember correctly.). Then one day I really got to thinking how much could I save if I stopped drinking coffee well at least buying it from QT every morning. So I did simple math 2.02x7 is $14.14 a week or $56.56 a month about $678.72 a year! And that was just a cup of coffee I of course cut out eating out, junk food for the most part and I am now saving well over $200 a month and putting all of that into savings. That is just one example of how I did it. I am sure there are many ways out there of saving money I have probably not even thought up of yet and I am talking about small things not drastic. Not to mention the cut of junk food has made me happier and healthier.

Investments

Now I want to be clear with this. This is not your typical investment that I am about to talk about. But rather one more suited towards the fall of an economy and essentially the dollar. The most obvious investment you can make is to buy gold and silver. I think every person in this country is doing that at this point. While that will hold value and its all and good, you can not eat gold and silver. At one point people will want food rather than gold. So a gold and silver investment while good should not be the only investment.

Once the economy fails and everyone is running around trying to figure out what to do and items and resources become scares, everything will start becoming more localized and we will probably move back to a barter system. With that said it will be good to prepare for a barter type of system just in case it ends of that way and even if it doesn't it will not harm you in any way. Here is what I think you will need in a barter type of system.

1. Water, The single most important item any one person can have. Drinkable water is important to life. While I would stock up a lot on this you can also invest in rain catching gear, water purifying system and other things to make undrinkable water drinkable.

2. Salt, stock up on this and start now. This one little thing that people take for granted everyday will be essential to your survival and a good thing to have in a barter system. Salt is one of the most important thing a person can have in their stock pile period. It is essential for the human body, it makes food yummy, and it can preserve food as well.

3. Spices, you think they are expensive now wait until the economy fails and governments go bankrupt and so do major companies. This one comity that people take for granted will be super rare and expensive. However, most spices and herbs can be grown almost anywhere with a little bit of knowledge. A good website I found about some spices you can grow are http://ideas.thenest.com/dinner-recipes/cooking-advice/slideshows/easy-spices-to-grow.aspx?page=5 and http://www.tropicalpermaculture.com/growing-herbs.html these are two very good sites to get you started.

4. Life stock, food is one of those thing you have to have. While you can hunt if you do not have life stock which is a good way to get meat and other foods life stock is more beneficial. It is there when you need it you don't have to go out and find it hopefully, you can trade it for other animals goods or services, and depending on the animal it will have many uses.

5. Other currency, while it is good to have food water ect it is also a good idea to have some form of other currency available in case you can some how assuming things are not that bad go to another country or that their currency is not completely useless. This is something I would keep around, because I do not like to assume anything like all currency will be useless and you will be trapped in this country. You just never know what life will throw at you and where you might find yourself. Therefore, I think that having some other currency like Euros, Yen, and the Australian dollar to name a few might be useful.

6. Land, I believe that land is one of those things that over time will increase in value even more so than gold. Because scientist have found a way to make artificial gold believe it or not, but they have yet to find a way without lasing our water supply it will grow in value tremendously. Not to mention land is very useful to have because you can grow food on it have life stock and the uses for land are almost limitless. Not to mention if the land has a natural aquifer.

Like I said not your normal investment portfolio. I could spend so much more time on this but these are the 6 things I think will help you if an economy collapses.

Pay off any debt

Now this one may be a bit tricky to do since many people are having trouble meeting ends meet. But by all means try to pay off any and all debts you may have. I am going to take a guess that banks will want money owed to them if the economy starts failing to keep themselves afloat. Just because the economy fails doesn't mean our money will be worthless. The great depression is a perfect example of that. Money was not all that worthless still had value just not as much as it does now. This one again may be hard but I know from personal experience but it has to be done. Many things can happen if the American economy can fail don't be caught off guard pay off any dept you may have. I will have a completely separate blog post about this coming up soon. As I have said I was in that boat I have searched for solutions and I have found it through trial and error. I have given the advice to my friends and it worked great for them. So I will dedicate a whole blog post just to that.

Learn a Skill

Learning a skill is good even if the economy is still going strong. But a carpenter, welder, handyman can be worth their own weight in gold. Knowing how to build and work with your hands will be skills that if the economy goes you can use to barter with. It can be almost any skill just learn one or a trade and master it. I would say master one then have 1000 that you barley know what you are doing.

These are some of things I would recommend. There is so much when it comes to this that I could make this blog post endless, yet I do have to end it at some point. Just remember what can go wrong will go wrong. Do not assume anything prepare for everything. It cant hurt to be ready it can only hurt not to be ready. As we have seen time and time again it is a matter of when not if. If you have any ideas or comments please feel free to post them and let me know how I did or if I missed something important.

Be Credit Smart

2012-09-10T15:18:00.002-07:00

Intro

I am writing this blog to give people knowledge about how to make it financially. I know there are financially hard times out there and I want people to have certain knowledge. And learn from my mistakes as well. I am human, I have been in dept. Now the only dept I have are my student loans. I am a business major going for my master in Accounting and my Bachelors in Finance.

How credit score works and why you need it

In today’s day and age credit is needed and few people can live without it. One needs credit to buy many things like a house, car, and maybe a TV. You need a credit score to show the lender (person loaning you the money) that you are able to pay them back. It is in lack of better terms how credible you really are to keeping your commitments. Now is a quick break down of how credit is scored.

Now the real way of calculating credit is much more complex than they method I am about to try to break down for you. And I think that the method is owned by Fair Issac not to mention it is really complicated and confusing. So basically a credit score ranges from 300-800 (300 poor and 800 being really good)

35 percent of your credit score is calculated on your payment history. The reason this is the biggest part of your credit score is because a lender wants to see how good you are paying your bills and to see if they can trust you with their money. The factors that will affect this score are late bills, bills in collections, and any bankruptcies. Now the less each of those is better.

30 percent of your credit score is based on outstanding loans and debt. This will be one of our misconceptions so I will go more into detail about this later. But it is basically how many loans you have out there and how much credit have you maxed out or near its limits. Too much of this and it can negatively impact your score.

15 percent of your credit is based on the length of time you have had credit. One cannot expect to build good credit overnight. It takes time and a lot of work and careful planning.

10 percent is based on new credit. Each time you ask for someone to check your credit or you want to open a new credit card it impacts your credit in a bad way for a short amount of time.

10 percent is based on type of credit you have. Example of this would be installment loans which is your car loans and house loans. There are more out there than just installment loans that is just one example.

Now that you better understand credit how it works and why you need it let us move on to how to improve it and a lot of common misconceptions about it.

Less is more

When it comes to credit the less you have is actually better. What I mean by this is that the fewer amounts of credit cards you have and the least amount of outstanding debt you have is better. Many people out there think that you have to borrow money and pay only the minimum payment to get eventually get good credit. Well those people couldn’t be further from right. The less amount of your credit that you are give you use the better your score will be and the faster you will build it. As a general rule of mine I do not use more than 15 percent of my available credit. And that is at max, I personally use 5-10 percent. I do this because I do not want to put on my credit card more than I can pay off at the end of the month. Not to mention this makes you look better in the creditor’s eyes. And here is why, it shows that you are responsible with your credit and at the same time it shows that you can pay it back.

A lot of people out there think that having a balance at the end of the month and paying the minimum payment is the best way to build credit. While they are somewhat right, it is just not the best way to go about it. It is the best way because, not all of the minimum payment goes towards the principle. Some of it depending on your interest rates goes towards that then the rest goes towards you actual balance. Not to mention you pay back more than you borrow, and that is just money in the long run that could have went towards something else like a new PS3 game perhaps or other bills. An example of this is if you borrow let’s say for this example $1000 and the minimum payment is $40 dollars with interest at 19% it will take you about 4 years to pay back and you will have paid an extra $500 give or take.

By not making random charges on your credit card and keeping your balance low you will learn how to control your spending. Many people fall into credit card trouble because they buy a lot thing that they do not need or should have paid with cash. If you go look at someone’s credit statement you will see that many of the items they have bought recently were really not that expensive at all, yet they added up. One dollar here and there adds up to $500 by the end of the month. This is the perfect reason one should only use ten to fifteen percent of their available credit each month. It will keep you from buying stuff you never needed in the first place but all of the sudden you do, all because you have a plastic card in your hand.

One big mistake people make and I have run into this a lot while doing research for this book. Is that the more credit cards you have the better off you are. This is not true it is good to have one good credit card and sometimes depending on the card another one just in case a business does not take American express for example you will have to pay with Visa or Master Card. But that is the only time I would recommend having more than one credit card. Otherwise that is just asking for trouble not to mention it will make a financial institution worried that your spending more than you are making. Remember the number of credit cards makes up about ten percent of your credit score so one card does it all. Avoid the urges to open credit cards at all costs because in the long run it will hurt you not help you.

By sticking to less is more you will never have to worry about closing a credit card or credit cards because you have to many to handle. It is also never a good idea to close any type of credit card unless your credit is good and can withstand to close it. Remember each time you open or close a credit card it hurts your credit. And just because you close a credit card does not mean that you no longer owe money on it. The best way to handle the I got to many credit card problem is to not use the card anymore and it will eventually close by itself not harming your credit.

College the perfect time to build or ruin a credit score

While college should be a fun experience and used to make new and ever lasting friendships; it is also a good time to build your credit. While most college students think that the only way to build credit is to use a credit card they have not thought about the biggest loan they have to take out over the course of their four plus years in college. With that much time on your hands building credit is super easy. A good way for a college student to start building credit without mom and dad’s help is to pay small amounts of their loan off. Here is what I mean by this. We all know that student loans acquire interest over their life time and it is hard to pay them back sometimes. The best thing to do while in college is to try to pay fifty dollars a month on them. This will help you build credit that you need to later on get a credit card or other types of loans. This is how I started building my credit. I used my student loans to build my credit. I started off by paying about fifty dollars a month sometimes a little bit more if I could afford it, and in about a year or so my credit score was at 650. Now that is not the perfect credit score; however, from there this allowed me to get myself a credit card to further build my credit.

Don’t get me wrong while your college years are a perfect time to build your credit score it is also where most people ruin it. Many college students finally now have this new found freedom and want to get stuff they have never had before. Only problem is that most of them do not have money for some of the stuff they want. So what do most of them do? They get a credit card and max it out and then they find themselves barley being able to make the minimum payment each month. And now instead of starting out their life after graduation with good credit or on the right path to good credit and little debt if possible; most have already declared bankruptcy which will haunt them for about 7-10 years of their lives.

Credit Card Terms

We all know that when it comes to credit cards they have all these terms that make your head spin. Luckily there is help out there. A great website that anyone owing a credit card that wants to understand credit card terms and anything associated with a credit card is http://www.creditcards.com/glossary/ this website is very helpful and very useful. There are a lot of terms out there; from buying a house to buying a car each use their own language and I have personally found this website to be the most helpful out off all of them. I am not going to list all the credit card terms out there because that would take up probably the next twenty to thirty pages. Instead I am going to list some of the most common lexicon that you will run across while credit card shopping.

You've heard the horror stories about people carrying thousands of dollars in credit card debt, and you don't want to be one of them. Before you get your first credit card -- and certainly before you go putting purchases on plastic -- become familiar with these credit card terms. By taking a few minutes to educate yourself about how credit cards work, you can prevent mistakes before they happen -- and perhaps save yourself a lot of money and headaches down the road. (Back to glossary of common credit card terms.)

Annual fee -An annual fee charged by a credit card company for use of a credit card .

Annual percentage rate (APR) - The annual percentage rate is the interest rate charged for borrowing their money.

Fixed APR- An annual percentage rate that does not change throughout the year. The best to have, if you can get this get it.

Grace period-The grace period is the time during which you are allowed to pay your bill. Know your grace period this will come in handy to make sure you are not late with a payment.

Over-the-limit fee -A fee charged when your balance goes over your credit limit. Know what that fee is, but try to never reach that point. As a rule of thumb never use more than 10-15 percent of your credit limit or what you can pay back at the end of the month.

Schumer Box -- The Schumer Box is a standardized disclosure "box" disclosing terms ... (more)

Secured credit cards -Secured credit cards are those that require collateral before they will issue you credit. This is a good way to start building your credit if you not using a student loan or any other type of loan. You can usually get these from your bank or credit union.

Variable interest rate -With variable-rate cards, the APR changes when interest rates. Make sure to try and stick away from these. While right now they may seem like a good idea who knows what interest rates will be like in four to five years from now.

Get to know your credit report

Your credit card is like a record of your financial life. Credit reporting agencies keep track of the credit card companies you do business with and report it each month. The companies include but are not limited to Equifax, Experian, and Transunion. You are allowed once a year to check your credit report for free.

They use that information to create a record that includes:

· Personal information to identify you, including name, current and previous addresses, and Social Security number.

· A list of your credit accounts, including reports from lenders on their history with you.

· Public record information and information from collection agencies, including delinquent accounts, bankruptcies, foreclosures, lawsuits, wage attachments, liens and judgments.

· Credit inquiries—a list of everyone who has asked to see your report in past two years.

Knowing what is on your credit report can be the difference between getting that nice house you have always wanted at a great interest rate or getting the worst possible interest rate and your house is not quite what you have wanted. Also credit card companies are not perfect and do not expect them to be perfect. They will make mistakes just like we make mistakes, so always check your credit score and credit report once a year to make sure that all the charges you have made were actually made by you.

Good Credit Cards to Start Out With

I have had many people ask me this question. Which credit card do I start out with? Well the answer is simple do a lot of research on the type of credit cards out there. A great site to start out at is http://www.creditcards.com/ this to me is by far one of the best website to do research on about the different credit cards out there. Now there are many out there and shopping for a credit card is like going car shopping. Know what features you want and what you can afford aka your credit score. Now another place to get a credit card that will be good for starting out is at your local bank or credit union. I recommend trying a credit union first they have the best rates around. If you do not belong to a credit union go to one and become a member and it is easy and simple to do. Also if you have a credit union in your area or certain miles from your house you might already have member privileges. Just do your own research and know what you want and are looking for. Once you have this figured out getting your first credit card should be a snap.

Conclusion

Knowing the world of credit and credit cards can be very advantageous. The more you understand how credit can impact your life both in a good and bad way the better off you will be. As you start out your journey to getting a good credit score always remember that less is always more and that knowing your credit score will save you a lot of headache. And that shopping for a credit card is a lot like shopping for a car. Know what features you want and what your budget is aka your credit score.