PERSONAL FINANCE

10 More Ways to Waste Money In College

noreply@blogger.com (hazel) — Mon, 28 Sep 2009 07:38:00 +0000

I have decided to write a continuation of it. Today, I explain ten more ways that college students often wasty money. Avoid these dangerous money drains!

DVD Rental

Many people spend more money than they realize “occasionally” renting a DVD from their local movie store. The seemingly small costs add up quickly over time, and many people would be surprised by how much it really costs. If you want to rent DVDs, find some service with a small monthly fee, such as Netflix, or, better yet, get them for free from your local library.

Cable TV

You really don’t want me to get started on the worthlessness, even dangerousness, of television. Besides the hazard of the mind-numbing, morals-destroying stuff that comprises the average TV show, the exorbitant cost should be prohibitive. Do you really want to spend hundreds of of dollars every year to buy something that will keep you from studying? If, however, you do still watch TV, at least don’t pay for cable TV. With the advent of the internet, you can get virtually every TV show you want online.

Buy a New Car

Getting a new car will continue to waste your money for years after the purchase. Unlike most other purchases which take money you have, this purchase takes money you do not even have yet. If you are ever tempted to buy a new car, simply find a few friends who are still paying off expensive car loans and ask them what they think about buying new cars. The almost unanimous regret of most new car “owners” (really the loan companies are the owners) should be enough to deter you.

Cigarettes

Not only is smoking an unhealthy and time-stealing habit, but it also is an enormous money sink. When comparing purchasing cigarettes to buying a new car, a new car is actually the better option! With a new car, the loan is eventually payed off, but smokers are forced to pay for the cigarettes plus cigarette-induced health problems.

Bottled Water

Many people drink bottled water because the tap water in their area tastes too disgusting. Although strangely-flavored tap water can be a problem, there are less expensive ways to solve the difficulty. If your water does not taste too bad, you can try to get used to it. If, however, the water does taste too bad (as is often the case), you can install a water filter or use a pitcher filter. Compare the costs in money and time and decide which option will be best for you.

Postage

With the cost of stamps rising slowly but surely, postage is becoming more expensive than many realize. If you only send three regular sized envelopes each week, you are paying $68.64 cents every year. Try to move most of you communication to email and only send physical messages occasionally.

Bounced Checks

Simply not realizing how much money is in your bank account can cost a lot of hard earned money. Bounced checks are especially hard to avoid for college students, because students rarely have a large buffer in their bank accounts. To avoid bounced checks, maintain a strictly accurate record and verify the amount of money in your checking account at least once a week.

Throwing Away Leftovers

Amazingly, many students (and other people) actually through away their leftover food after a meal! By saving this food, you can often get two meals out of one, or at least have some food handy for snacks.

Energy Drinks

The newest fad in the sports field, energy drinks are worst than a waste of money. If you do not really need all that extra energy, where do you think it will go? That’s right, it will be used to help build a “spare tire”. Think about it, you would be actually paying to become fat – not the best choice. If you really do need the energy, but you also need your money, try out some alternative ways to boost your energy.

Disposable Razors

Instead of paying for expensive razor blades, only to soon throw them away, you would be better off investing in a high-quality electrical razor that will last probably last more than a decade. Although the up-front cost will be higher, the long-term benefits in finances and the immediate benefit in a more comfortable shave will be worth it.

Hopefully, avoiding these ten money drains will help improve the health of your pocketbook. What is the biggest money waste you have noticed?

10 Ways To Save Money On Your Computer

noreply@blogger.com (hazel) — Mon, 28 Sep 2009 07:17:00 +0000

Nearly every college student buys a computer at one time or other. Computers are irreplaceable when writing, communicating, and learning. However, computers are also excellent at eating your money! To get a good computer, without going broke in the process, utilize these ten ways to save money on your computer.

1. Know What You Need :

Before you go to the store and start looking for a new computer, do your research. Are you looking for a fast computer with lots of memory? A small computer to carry from class to class? A large screen computer to watch videos? If you know what you are looking for, you will be able to avoid wasting your money on a computer that does not really fit your needs.

2. Know What You Don’t Need:

In addition to knowing what you do need, you should also know what you do not need. Unless you are a photography or video student, you probably will not need the most expensive multimedia card – most likely, you would not even notice the difference. If you know what you do not need, you will be able to avoid wasting your money on computers with unneeded extra components.

3. Use Rebates To Get the Best Deal:

Computer companies love rebates… because most customers never use them! By remembering to complete any rebates available for your computer, you can often save hundreds of dollars. Just remember to still compare prices – sometimes a computer with a rebate is still more expensive than a similar computer without a rebate! Also, before you actually purchase the computer, make sure you fully understand how to complete the rebate – they can be pretty complicated.

4. Buy Refurb1ished or Open Box Computer :

Often you can get refurbished or open box computers at huge sale prices. For instance, Best Buy often sells its demonstration models at vastly lower prices. Refurbished computers are computers that have been returned for minor problems or simply because the customer changed their mind. The computer company then completes minor maintenance or repairs, certifies the computer, and sells it at a discount.

5. Do You Really Need the Extended Warranty?:

Evaluate whether the extended warranty is really necessary. If you plan to carry you computer around campus, the extended warranty probably is useful, but, if you are only using you computer in your dorm room, it may be a waste of money. Personally, I would prefer to have the warranty, if only for the peace of mind, but cutting the extra warranty is one way you can save money on your computer purchase.

6. Buy Last Year’s Model :

Computer models change quickly – sometimes even every three months. Generally, the “new” model will have a few slight improvements over the “old” model, but they are normally mostly the same. However, when the new model comes out, computer stores generally clear their inventory by selling the “old” models at steep discounts. Buying these discounted computers will give you virtually the same performance… for a much better price!

7. Don’t Buy It at All! :

Sometimes, the best way to save money on a new computer is to simply not buy it at all! If your old computer is still working fine, try to get another year out of it. The new computers available next year will probably be more powerful and less expensive than your options this year!

8. Avoid Unnecessary Software :

When getting a new computer, try to avoid “investing” in unnecessary software. While this may seem like common sense, many people are convinced by the computer salesman to buy some extra piece of software. Unless you do graphic design work often, Photoshop is probably a waste of money – other options will work almost as well.

9. Transfer Software :

If you have an important program already installed on your old computer, consider moving it to your new computer instead of re-buying it. For instance, I found that my copy of Microsoft Office is licensed to three computers. So, when I got my new computer, I was able to install it there without buying a new copy. If you only have a one computer license, consider uninstalling your program on your old computer and reinstalling it on your new computer.

10. Use Free Software :

Many times free software is just as useful as paid software. For example, Paint.net is an excellent free alternative to Photoshop. Although there are differences, you would probably not even notice them unless you do lots of graphic design work. I am still learning to use all the features on Paint.net!

Money management For Unmarried Couples

noreply@blogger.com (hazel) — Mon, 14 Sep 2009 07:42:00 +0000

Finances are the number one reason for divorces, so it goes without saying that discussing finances at an early stage is vital, but how do you start the conversation?

Although starting finance discussion with your partner other can feel a little unnatural, over time it will become normal. To get started the right way follow these steps/suggestions and things can get off to a good start, but remember that it will take some time for this conversation to become “normal”.

1. Start by Discussing the Good things:

Start your personal finance discussion by talking about the things you are doing right and are happy about. You may have made some good frugal decision recently or maybe decided to contribute to a charity. Praise each other for the good/smart financial decisions you have made, this will make it a more comfortable conversation and boost your self-esteems.

2. Discuss specific and small things:

One common mistake I see new couples do over and over again is discussing complicated and broad issues such as retirement life style, children’s education etc. Those are very lengthy and sometimes heated conversation and you do not need to discuss them right out of the gate. Talk about small short term specific goals; in Emily’s case maybe discuss your wedding costs and maybe read the wedding savings tips article and discuss. Sticking to something short term and specific will ensure that you can accomplish something during the conversation and not feel the time is wasted.

3. Admit Your Own Mistakes:

Do not start pointing fingers, but rather admit some of your own financial mistakes and what you have learned from them. Do not talk about all the financial mistakes your partner has committed in the past, but rather focus on your own mistakes. The important part here is that you also discuss what you learned from those mistakes. For example, just saying that you made a mistake buying a $20,000 car when you had $15,000 in loans is not very productive, but what did you learned from that is much more productive.

4. Break it off if too Heated:

If you sense things are getting a little too emotional and heated, just break off the conversation before things turn ugly. Just break off the conversation and skip to step 6, than revisit the discussion at some other time.

5. Agree to discuss finances regularly:

Hopefully the first conversation has been productive to some extend, but don’t let the momentum go, set a monthly finance discussion. Regular family finance discussions can go a long way not only in strengthening your relationship but also in your wealth creation.

6. Be Romantic:

Discussing finances is far from romance, but once the discussion has ended, do something fun. Be romantic, you can go out for dinner in the evening or maybe go for a late night movie or …well I am sure you can think of other amusements.

The first conversation may not go as smooth or productive as you may want to, but it’s just the first step and remember it’s a long term process. So don’t give up, just try again another time it may take sometime to find the right rhythm. If you find things are not working at all but you both still want to have the financial talk, than consult a money coach in your area who maybe able to help you.

Gifts That Teach Kids Financial Responsibility

noreply@blogger.com (hazel) — Wed, 09 Sep 2009 07:24:00 +0000

Teaching your children about money and finance from an early age is an extremely important and beneficial lesson for your children. If a child (when I use the word child, I am generally referring to a person between the ages of 12-17 and not a toddler or infant, because neither a toddler nor an infant or any child under the age of 12 could really understand such lessons) can learn how to appropriately use credit, use a bank, and save and invest money, the child would be in a far better financial position when he/she enters the "real world" than many other people of like age.

However, many can agree that it can be hard to teach a child anything. Teaching is even harder when the topic involves money because up until that point, you (the parent) have always been the bank, the tax collector, and the ATM. However, you can teach your children about money by way of gifts that are protected. In other words, for example, you could open up a stock account in your child's name and as a gift, contribute a certain amount of money to the account. The lesson is created and learned when you make the gift conditional.

For example, if you decide to go the stock account route, you can, as one of your child's gifts on birthdays and holidays, contribute money to that account. However, before you donate the money, you child has to pick the stock into which to invest the money. If your child knows nothing about the stock market or how to read financial information, this will be an exercise in futility. However, this is where you come in. You have to teach your children how to read financial information and how to read stock quotes.

At first, you will probably want to restrict your child's choices to big, safe companies that deliver consistent returns. However, as your child becomes more educated on the subject, you can open up the available investment field to include more speculative stocks. As this occurs, the child will get a first hand experience as to the principle of risk vs. reward.

As all of this is happening, you have to be constantly teaching your child to appreciate money. This does not mean that you teach your child to be greedy or to worship money, so to speak. Put simply, people generally do not respect what is not theirs. As such, unless your child appreciates the money in the stock account, he/she may blow the money once he/she gets his/her hands on it. It is important to note that maturity usually comes with age and therefore, you may want to restrict your child's access to the account until they reach a certain age (for example, 25 years of age). By this time, your child will be a working adult and will have a first hand experience of what it takes to earn an honest dollar.

Teach your children when they are young and they will most likely avoid the common financial mistakes that many young adults make. As such, they will be better off financially and intellectually.

The Essential Basics of Personal Finance

noreply@blogger.com (hazel) — Wed, 09 Sep 2009 06:21:00 +0000

I first started researching and developing my knowledge of personal finance just a few weeks before starting my blog. Since then I have gathered and put much information to practice in relevance to the subject. I started off knowing not much more than decided that if I was going to learn how to manage my money and be successful in doing so, I would have to learn the ropes and use what I learn.

Unfortunately there are many people in the world who are still in the same state that I was. In times of financial hardship and a failing economy, this can be disastrous.

In this article I am going to share a few essential basics that I have learned about personal finance.

First and foremost, if you don't know it already, the principle concept of success in personal finance is something we all know, but few follow.

SPEND LESS THAN YOU EARN!

It's a simple concept, but most of us find out that it is easier said than done. Don't believe me?

On top of living the idea of spending less than you earn there are a few other hot tips that you should follow to keep yourself in check financially. Some of these include:

Living Frugal - This means cutting back. If there is a cheaper alternative to your current cell phone plan, cable bill, internet bill, or anything else, take the cheaper deal. If you really don't need it, cut it out altogether. If you go out to eat a lot, start making more meals at home. It's truly amazing how much a few simple concepts can drastically change your monetary status. Even just cutting back a little on quite a few bills can wind up saving you big money.

Shop USED - This is something that a lot of people have a lot of trouble doing for one reason or another. Americans, especially, have become a people of possessions. Not used possessions, but new. Next time you go to shop for clothes or books, look around and find used deals. A lot of places sell quality condition used items and for a lot cheaper than you would pay new. This applies to pretty much anything whether it be clothes, books, cds, or even big ticket items like cars.

Build An Emergency Fund - This is a huge essential especially in current times. People are losing jobs left and right without notice. Don't be one to be put into a bind if this happens to you. Building an emergency fund will allow you to be more at peace. Knowing you will be OK whether you lose your job or your car breaks down is a psychological need that you should meet. Otherwise, if you get put into these situations, you could sink into financial stress and depression. Emergency funds, in the past, were suggested to have just a month or two of Iiving expenses covered. In today's economy it is suggested that you have AT LEAST 6 months or living expenses saved in an emergency fund. Start putting money away ASAP!

Use Generic Products - Yet another concept that people struggle with. Everyone gets stuck on using brand name products because they are what have been around for years and burned into the back of our minds through advertising. The cold, hard truth is these products are the exact same as generic products, just with a well branded name attached to them. Generic products cost much less, start using them!

Drink More Water - This not only helps you save money by cutting out sodas and energy drinks, but it also boosts your health. You're investing in yourself two ways that are both hugely beneficial! These are just a few simple ideas to keep in mind when beginning to try to balance you out financially. You should also keep track of all expenses and budget yourself. Just doing these simple things can help bring you out of a financial rut and progress yourself in many ways. Just don't ever forget that finance golden rule:

SPEND LESS THAN YOU EARN!

How to Save Money

noreply@blogger.com (hazel) — Wed, 09 Sep 2009 04:33:00 +0000

‘MONEY’, in this era I think can well be stated as the ‘Most Outstanding Necessity Enveloping You’.

Life is impossible without money. Funds are essential in every walk of life. So, such a crucial indispensable aspect of our lives needs extra care and protection. This article, therefore, is a guideline to many effective money saving strategies.

Money Management might not be imperative for everyone. But many of us nowadays need to be vigilant while spending. This is because of the soaring market prices and limited income. But ‘where there is a will, there is a way’. If you desire to save your hard earned cash, you ought be judicious while spending it.

The for most technique to be economic is to prepare your monthly budget. This will help you in administering your expenditure throughout the month. But mere planning a budget is insufficient. What basically matters is, how much you adhere to it. So, try to stick to your budget. Any deviation from it should be in case of an emergency.

1. Shopping with coupon is deemed to be a very cost effective nowadays. These coupons are gift vouchers can be grabbed from your daily newspaper, magazines, in shops and on Internet. They provide you with varying lucrative offers such as 40% off on your eating in a restaurant at a particular date and time etc. Coupons thus are a wonderful way to enjoy a variety of things in life while saving many of your dollars.

2. Try shopping during the sale season. It is the best time when you can get an item worth $100 in just $80 or even $50. So, don’t miss an opportunity to avail the sale season benefits.

3. Avoid repeated shopping. It is not prudent to shop time and again because each time you make it to the market, you will be spending money on travel (oil, taxi fare etc.). Moreover, the market rates keep on fluctuating. The thing prized worth $45 today may be for $50 by the end of the month.
Therefore, once you are on for shopping, especially some items such as foodstuff etc are concerned shop as much required and make no compromise. Take these a little more than needed. This saves you from landing into troublesome exigency situations.

4. Be frugal in using your credit card. Though credit card acts as bank in your pocket, it comes with huge rate of interests. This is the most significant drawback of using a credit card that perhaps supersedes all its merits.

5. Save on electricity and phone bills. Do not assist your children with separate TV and phone connection in their rooms. Keep just one television set and phone connection in your living room. This will enable you to keep a check on the amount of usage of these things. It is definitely a money spinning way for those fraught with hefty electricity and phone bills.

6. Planning a garage sale at the end of the year is not a bad idea to make some money out of the undesired items in your house.

7. Don’t be habitual of junk food and eating out. This will not just be emptying your pocket soon but can even be hazardous to your health.

8. Get a medical insurance. It will facilitate you with requisite amount during unfortunate health perils.

9. Another a good way to save your money for your own self and your successors is to make investments. These can be in the form of property, land, stocks, trusts and the like.

Apart from these there might many other ways to manage your outlay that may appeal to you.

All you need to do is to be a little cautious, far-sighted and love your well-deserved money.