POVERTY WITH STYLE- LIVING WELL ON A LOWER INCOME

Four Ways to Cut Your Auto Insurance

2012-06-24T17:39:00.001-07:00

Auto insurance rates are rising all of the time, much to the displeasure of motorists everywhere. If you are one of the many people who are concerned about having to pay more and more money out to your insurance company to insure your motor vehicle then you need to look for effective ways to either reduce the money you spend or minimize the increases to your policy. Here we look at four ways to make your auto insurance experience not quite so stressful on your psyche and your bank account!

One: Insure more than one car and/or more than vehicle at once.

Insuring a single car can end up costing you more money at a given insurance company than can insuring more than one vehicle that you own at once. The same can be said for insuring drivers. In this instance the more the merrier! The reason for this is because most insurance providers will offer their customers a bulk rate to encourage more business to come their way.

To find out if you qualify for a deal or discount such as this ask your insurance company or the agent you deal with to find out if you qualify. From there you can obtain a quote and can decide if it is worthwhile for you. In most instances multiple drivers on a policy must reside at the same address and must either be related by marriage or be blood relatives. However there are exceptions to this rule.

Two: Remain as squeaky clean as possible.

A clean driving record with as few moving violations, speeding tickets or accidents as possible will work in your favor. The more of these issues that you have on your record the higher will your annual premiums be. Everyone who drives has points on their record. Your points go up with every moving violation you encounter. In most cases the more points you have the more you will have to pay on your annual premiums.

Three: Sign up for a defensive driving course.

There are plenty of insurance companies that look favorably upon those drivers that take the time to take an approved (in other words, accredited) defensive driving course. This can help to bring down your rates because it renders you less of a risk when you get in your car. As well there are cases in which such a course (or also an accident prevention course) can serve to reduce the number of points that have built up on the individual’s license.

Find out whether your insurance provider offers deal or discounts for such a course before you sign up for it. While this type of course is always good in terms of your driving education if it does not translate to savings on your insurance policy then it may not be worth it to you.

Four: Browse and shop until you drop!

Just as you browse and shop for a new pair or shoes or a new television the same should be said for an auto insurance plan. If you have renewed your insurance policy and now the annual premium has gone up drastically then it is time for you to start shopping around. Obtain quotes from some other companies. Healthy competition amongst auto insurers is a good thing. But bear in mind that the cheapest quote from a company does not mean that you should automatically switch your car insurance over to them. Consider the credit worthiness of the insurance provider as well before making a final decision.

Image(s): FreeDigitalPhotos.net
Image(s): FreeDigitalPhotos.net

More Simple Cleaning Tips that Embrace Frugality in Your Home

2012-06-08T20:31:00.001-07:00

Ready for some more help around your house when it comes to your household chores?

In the kitchen sprinkle oven stains immediately with salt after cooking and then once the oven has cooled down, whisk and wipe. Place a tray of water on the bottom rack of your oven when broiling meat to ensure that the meat drippings will fall into the water and not on the oven.

If you want to reduce odors in your refrigerator- and who doesn’t? - then here are some things you can try. The first thing you can do is to cut a lemon in half, hollow out one side of it and then fill it with either baking soda or salt (both work well in this regard) and place it on a shelf in the refrigerator. The soda or salt will absorb odors while the lemon will give off a pleasant scent.

The second cleaning tip is to use two charcoal briquettes in the refrigerator. Charcoal briquettes are a highly effective and inexpensive deodorizer that can also be used in other places throughout your residence.

If your dishcloth needs to be disinfected right away then don’t worry- toss it into the microwave for 10 to 20 seconds and it is good to go! This helps to kill germs ASAP!

Your carpeting needs attention too and could use a dash of frugality. To brighten your carpets sprinkle them with salt an hour before vacuuming. Ordinary table salt or sea salt both work well.

To remove grease spots from your carpet sprinkle with baking soda or cornmeal and brush lightly. Leave it to absorb into the carpet overnight and then vacuum in the morning.

If your carpet or upholstery has wax or crayon on it then place brown paper over the stain and press with a warm iron. The brown paper will absorb the wax and make it possible for it to be removed.

During the winter season salt from the outdoors can damage the carpets in your home. To get rid of the salt combine equal parts white vinegar and water and give it a good cleaning.

Image(s): FreeDigitalPhotos.net

Simple Cleaning Tips that Embrace Frugality in Your Home

2012-06-08T20:14:00.000-07:00

If you think that you know all there is to know about keeping your home as clean as it can be then you need to think again. There are some simple and cleaning tips for your home that you will know about once you finish reading this! They are easy to do and they cost next to nothing.

White vinegar is a cost savvy and natural ingredient that is the queen of cleaning supplies. In fact it is one of the cheapest and most beneficial cleaners you will ever need. For example, white vinegar is an amazing deodorizer. Eliminate odors caused by cooking by adding one tablespoon of white vinegar to one cup of water and then boil it to get rid of the unpleasant smell.

Eliminating the smell of smoke in a room can also be accomplished by using white vinegar. All you need to do is place a small bowl of in in a room and let it sit. In no time at all the vinegar will absorb the smoke odor and the room will smell fresh again. This also applies to rooms where painting is taking place.

Vinegar also works well for clothing. If you have garments that are smelly or greasy then add white vinegar to the wash to cut down on the grease and/or to do away with the odor. Rubbing washables lightly with white vinegar to remove anti-perspirant and deodorant stains and then laundering them as usual can do wonders. Add approximately one cup of white vinegar in your last rinse cycle to ensure that your clothing gets a thorough rinsing.

White vinegar also makes it possible to eliminate undissolved lint and detergent in a washing machine. Pour one cup of vinegar into the bottom of the washing machine tub and then run it through the normal cycle without clothes using the hot water setting.

Image(s): FreeDigitalPhotos.net

Six Tips for Shopping Safely and Smartly Online

2012-05-30T12:46:00.002-07:00

If you are going to shop online (who doesn’t these days?) then you want to do so in a safe and smart manner. Online shopping can be a wonderful experience for anyone as long as it is done in a responsible manner.

Shopping online is convenient and there is no driving back and forth to the shopping mall; no worries about finding a good parking spot or having to deal with long line-ups or difficult store clerks. Another big advantage is that the Internet never closes, unlike the malls; therefore you can shop any time of the day or night. For people who have unusual work schedules and those who work backshift, this can be a huge incentive to shopping online.

It is important however to always be safe when going about your online shopping experience. Let’s take a look at six top safety measures for making sure you do not run into any serious problems when it comes to shopping by way of the Internet.

One: Safe online shopping means ensuring that you are making use of a secure browser from which to view the websites that you wish to purchases items from. The majority of computer systems do include a secure browser but if yours doesn’t, there are places on the Internet where you can download a secure browser and it won’t cost you a cent.

Two: It is always good practice to only shop online with merchants and companies that you are familiar with and ones you can guarantee are legitimate. For example, if an established company has a successful business offline and you are familiar with their products and have shopped there before then you are pretty much guaranteed that it is a secure and safe company to deal with through the Internet. If you do come across a company that you have never heard of before but it looks legitimate, before you plunge in request to be sent a brochure or a print catalogue to help ascertain if this is a company you wish to purchase from.

Three: Always keep your account passwords protected and private. Do not allow anyone else access to your passwords or you could be in for trouble. When creating a password be as strange or as creative as possible. Do not use things such as last names, family members’ names, birthdates, addresses or pets’ names that other people might be able to figure out. Also for an extra precautionary measure, combine letters, numbers and symbols together when creating passwords.

Four: When shopping online it is always best to pay for your purchases by way of a credit card, as opposed to PayPal, a debit card, a check or money order or some other form of payment. Online shopping purchases with a credit card are protected by the Fair Credit Billing Act. This act allows an individual to question any charges on the credit card as well as to temporarily refuse to pay a disputed charge until an investigation into it can be conducted. There are some credit card companies that will go so far as to offer their customers an online computer shopping guarantee. This guarantee means that the person will not be held liable for any unauthorized charges that are made on their credit card.

Five: Keep accurate and up-to-date records of every online purchase you make. Be diligent in printing out copies of all transactions and orders as well as confirmation numbers. As well remember to print out all credit card receipts. Always keep your records in a safe, secure place, away from the prying eyes of others. In the event that a problem arises, or if you need to return or exchange an item you will be able to do so much easier if you have printed copies of everything on hand.

Six: Only shop with companies that provide ample contact information at their website. Nothing is more suspicious than an online company that gives no indication of its street or mailing address in the offline world or a company that does not provide a toll-free or local telephone number for customer inquiries or even an e-mail address. Steer clear of companies that provide less information as opposed to more. Refer back to the second safety measure above which cautions you as an online consumer to only shop with well-known companies who can prove their legitimacy.

Image(s): FreeDigitalPhotos.net

Successful Budgeting- Keeping Extra Cash in Your Pocket

2012-05-26T17:58:00.000-07:00

You probably have no problem knowing what you would do with a little more cash in your pocket. For many it would be a dream come true! However it seems that everything is getting more expensive all the time (think food, utilities, gasoline, mortgages, insurance and the list goes on) and that means finding that extra little bit of cash is becoming more and more challenging.

In order to maximize your savings and find that extra little bit of money here are some things you can do to help yourself:

Map Out Your Money: If you really have no idea where your money goes after you earn it then it is time to turn things around. You need to start mapping your money forthwith! No, it is not particularly pleasurable to do this but it is a requirement of successful budgeting. Make it a habit to review your daily, weekly and monthly spending to figure out where your money disappears to. You may be surprised to discover what your latte habit is actually costing you!

Opt for Cheaper Alternatives: You may not realize it but there are cheaper alternatives available for many of the activities, products and services that you use and enjoy on a regular basis. Try substituting some generic grocery products for the brand name products you buy such as canned items, aspirin, cereal and crackers. Other options are to substitute meals at restaurants for making home cooked meals and swap nights out at the movies for nights in with DVD rentals (or DVDs rented from the local library).

Look for Leaks in Your Spending: Small indulgences can add up to a great deal of money spent that might serve your purposes better if it had gone into savings. Do you realize that purchasing a coffee or tea for $1.50 daily can cost you almost $550 on an annual basis? That is a huge chunk of change!

You don’t need to give up all of the small indulgences and pleasures that you have come to enjoy but what you can do is cut back on them a bit. If you start making coffee or tea at work or bring it from home and then only purchase it a couple times a week then this will put more money back into your pocketbook- and give you more financial peace of mind.

Go Green to Save Your Green: To save as much money as possible look for ways to go green. Putting gas into your motor vehicle and all car related costs is expensive so instead carpool, take the bus, the subway or walk. You might even decide to ride a bicycle to work on the days that the weather permits doing this!

Replace appliances in your home that are old or are not up to modern standards because they can increase your utility bills tremendously. Recycle and reuse more. Start a vegetable garden in your backyard if you own your own home and compost if you can. Look for as many ways as possible to conserve resources and to be greener. Not only will this make you more environmentally conscious but it will also save you some hard earned dollars!

Image(s): FreeDigitalPhotos.net

Money Tips to Help Guide You

2012-05-24T20:37:00.000-07:00

If you understand every facet of money then you are better able to put making money tips to work. Read on for some money tips that can help you and guide you in making proper decisions about money.

-Money is a tool. Do not plan your life around the money you earn but rather use the money you make to enjoy what you want in your life. Buy the goods and services that bring you enjoyment and satisfaction.

-Money making tips and spending are key elements to money management. Exercise smart spending. Investing is not the key to excellent money management. What is the most important is not spending more than you earn. Try to live slightly below your means and this will allow you to save money. In other words, live on less money than you bring in.

-When considering making a purchase, especially a large one, consider the in-costs involved and not simply the end price of the transaction.

-Setting goals are important money making tips. How can you earn money if you don’t make a plan? Amassing a lot of money can be likened to a marathon as opposed to a sprint. One of the greatest challenges is finding ways to remain motivated when the chips are down. To do this you need to chart your progress and set mileposts for yourself. In other words, in six months I want to be doing this, and so on.

-Don’t regard your budget as a type of money jail. Be realistic about your budget. A good budget is not one that highlights deprivation but rather is a formula for pre-spending and should focus on what you need and want to buy.

-Be smart when it comes to credit and debt. Use your credit cards responsibly. Only charge an amount that you know you can pay off before interest charges are added on.

-Consider your attitude about borrowing. Many people borrow at very expensive, on-deductible interest rates in order to take trips, purchase houses, cars, major appliances etc. On the other hand, they use cash when they invest. The experts say that you are better to do the opposite. If you borrow to invest then the interest will likely be tax deductible. This will also prevent you from falling into the high interest credit card trap.

-When you invest always diversify. You run a higher risk of loss if you choose to invest in only one product. Spread your money around a bit. Diversify as much as possible. If you know very little about investing then enlist the help of a qualified professional. Investing tips are important making money tips.

-When it comes to your portfolio, develop a plan for what you want to do with your money and then see it through. Allocate funds towards different assets to keep your risk as low as possible. A common combination for many investors is this- 10% cash, 40 % stocks and 50% fixed-income investments (an example of this is bonds). Move your money around throughout the calendar year as you see fit.

Image(s): FreeDigitalPhotos.net
Image(s): FreeDigitalPhotos.net

Decorate Your Apartment Frugally and Have Fun Doing It!

2012-05-24T19:36:00.000-07:00

Just because you are living on a shoestring budget does not mean that your apartment cannot look fabulous. You can decorate frugally but still find plenty of enjoyment in it. Read on for some suggestions as to how you can be a frugal and fun do-it-yourself decorator!

To start, make sure your home is neat, tidy, clean and as organized as possible. Get rid of the clutter and throw out, recycle or donate anything you no longer need. Organization can go a long way in making an apartment look great, especially if it is small.

Magazines are a great source of inspiration as are decorating shows on television. You can always take high-end decorating ideas and modify them for your purposes. Resolve right now to think outside the box!

One of the thriftiest ways to liven up a room is to paint it. A coat of paint (or two) works wonders. Make sure though that before you don painting clothes and get out your painting brush that you find out if you are allowed to paint your apartment. In some buildings this is a no-no because you are renting and do not own the apartment.

Change your focus. Do not always assume that decorating has to be about purchasing something new. To give the rooms in your apartment a new and inviting look, rearrange your furniture from time to time. Try experimenting with a new look and you might be surprised at what you discover!

Learn to shop smart by browsing your local second hand shops as well as garage sales and flea markets. Not only will you find bargains at these places but you will likely find household decorating items that are a little out of the ordinary! The earlier in the day you arrive at these places the better because you do not want to lose out to other shrewd shoppers!

Image(s): FreeDigitalPhotos.net

So Hard to Get Out of Debt…

2012-05-21T17:33:00.000-07:00

Getting out of debt is so much more difficult than getting into debt because it requires time, effort and a great deal of self-discipline. It is not fun either. In fact it is excruciating at the best of time and it is unbearable at the worst of times.

Getting out of debt also means that you will have to forego certain things and will have to tighten the financial belt. If you are used to living a lavish lifestyle and are used to shopping sprees and regular additions to your wardrobe as well as weekend getaways and nights on the town then you may find that you feel discouraged that you must modify your way of life in order to get yourself out of debt. Some people may fear that their family members or friends might treat them differently and find them boring if they suddenly are not able to do the things they used to do.

Paying Back with Interest

Another reason that getting out of debt is so difficult is that you do not just pay back to your creditors the money you borrowed but you pay it back with interest. Every month interest is added and if you cannot keep up this can cause your bills to become larger and larger until you reach a point that they are out of control.

Interest is basically a fee that is attached to any type of money that is borrowed whether it is a credit card, a mortgage, a loan, a medical or dental bill, etc. Interest rates are the percentage of a debt that gets charged to it and this varies depending on what type of debt it is. Interest rates, especially when it comes to such things as mortgages are often based on the credit history of the person in question.

Interest Rates- Secret Killers

Debt is difficult to get out of because it often sneaks up on you when you are not looking. Interest rates can seem to be secret killers because making a minimum payment on a credit card may help maintain a good credit rating but it will not help you pay it off in a timely fashion.

If you have overcharged your credit cards to a point where you have gotten yourself into debt then curb your spending immediately and do not create any new debts. Then you need to look for help in getting yourself out of debt. Sometimes compromises or all out sacrifices will need to be made such as moving to a cheaper and more modest apartment. Be aware that while services such as cable television and Internet service may be enjoyable to have you may need to get rid of them for the time being until you are able to eliminate the debt you are in.

Image(s): FreeDigitalPhotos.net

So Easy to Get Into Debt…

2012-05-21T17:22:00.000-07:00

It is very easy to get into debt. Too easy. All you need to do is purchase a few items, whether they be small ticket or large ticket items that you charge to your credit card because you do not have the cash to pay for them. You could take a trip or a couple of weekend trips that you really can’t afford and charge them to your trusty credit card and before you know it you could be struggling to pay off the card just so you can turn around and charge it up again.

Sound familiar?

There are many ways to get into debt and one is by wanting everything you cannot afford to buy with cash. Many people end up in debt because of conspicuous consumption or the desire to appear to have both the status and money that other people have. In other words, many people want to have and do certain things as a sign that they are going places in their lives and this can lead to financial problems. Debt is akin to being financially buried alive and without help it is something many people take a great deal of time to get out from under.

Not Always Your Fault

To be fair, debt sometimes happens not because of a person’s over consumptive behavior but due to an unfortunate life event that is often beyond a person’s control. Losing a job is a common reason for a person to get into debt as they drain their savings to stay afloat and begin living off their credit cards. If a loved one gets sick then medical bills can bring about debt no matter how hard the person tries to prevent it. A lack of affordable medical insurance is another problem that causes low-income earners to end up with terrible debts. Having a low paying job is bad enough but then trying to nurse a family member back to health with no medical insurance can be a terrible burden to bear.

It is unfortunate how debt can occur and often take over a person’s life but regardless of how it happened in the first place, it is the responsibility of the person to fix the problem. The solution is one that an individual does not have to tackle alone. Always seek the help of qualified professionals if you find that debt has crippled you financially and is beginning to affect other areas of your life as well. Never go it alone. Getting into debt may be the easy part but getting out of it is not impossible, as many people have done it.

Image(s): FreeDigitalPhotos.net

Is There Such a Thing as Debt Relief?

2012-05-18T19:48:00.000-07:00

If you are in debt then finding ways to relieve yourself of the burden you are carrying is understandable. You may have heard of the term “debt relief” and wonder if there is such a thing. Is there? Let us look at that now.

Defining Debt Relief

When asked the question- is there such a thing as debt relief? - you will receive mixed reactions. Some people will tell you yes there is, while others will scratch their heads and tell you that they are not sure if such a thing exists. Debt relief is a somewhat ambiguous term that refers to refinancing or rescheduling debt and to services and reduction of debt. To put it another way, debt relief is defined as, “the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations or nations.”

In reality debt relief is not something most individuals are able to profit from as most debts while they may be reduced in some instances are rarely forgiven. In the case of filing for bankruptcies some debts are written off while others still must be paid after the period of time for the bankruptcy is over. Some creditors are more understanding to their debtors than others. Some will offer debtors the opportunity to pay a portion of the total bill owing and then will forgive the remainder while others will find a way to make monthly payments more manageable for the individual in question.

Credit Counselling/ Debt Consolidation Services

It is always a good idea to look into credit counselling or debt consolidation services if you fear that your debt problems are getting out of control. Never be afraid to let your creditors know that your financial situation has changed (such as if you lose your job) and that you must look at ways to reduce your debt load.

Debt relief is sometimes an option for corporations that have run into financial problems and it has been awarded to poor countries by the government when it is obvious that the citizens of the country are suffering under the tremendous debts that the country owes the government or other more advantaged countries. One example of this that is often discussed is the Third World debt, which began being heavily discussed due to the Latin American debt crisis.

If debt relief is an option for you then it is worth considering but make sure you clearly understand the terms of the arrangement. Make sure that there is no way that the forgiven debt could ever come back to haunt you in the future. Be aware that even if a debt is forgiven or partially forgiven it will still affect your credit rating and credit history for years to come.

Image(s): FreeDigitalPhotos.net

Saving Money by Reducing the Food You Waste

2012-05-07T20:54:00.000-07:00

Sometimes no matter how good intentioned you are food still ends up getting wasted. While eliminating food waste completely may not be possible, reducing it is. When you reduce the food that is wasted in your household money can be saved. By so doing you do not have to feel that you are throwing your hard earned cash away in the trash!

Here are some simple things you can do to cut down on the food that is being wasted in your home:

One. Think frugality when you shop and be as responsible as you can be as you push your cart down the aisles of the grocery store or local market. Do not overbuy food that you and your family cannot possibly eat. Have a list and focus on purchasing what is on that list. Buying only what you need for a week or two until your next trip to the supermarket will help to reduce waste.

It is also important to shop when you are not the least bit hungry. You are guaranteed to buy too much if you shop when you have food on the brain!

Two. You need to store your food properly in order to prevent it from going bad. Food waste often happens when it is not resealed in the right manner and air and moisture finds its way in. Make sure to vacuum seal or double bag anything that you will be placing in the freezer.

Use glass containers with lids that are sturdy to save leftovers in the refrigerator and use storage bins and containers that close correctly for dry goods such as flour, oats, sugar, herbs and spices. You need to keep freshness in and everything unwelcome out of the food items that you are storing, whether it is short-term or long-term storage. You also need to use containers that make the resealing process a simple one.

Three. When you come home from the store with your groceries have an idea of what meals you are planning to make for the week. From there you can figure out the size of the portions you need to leave out for fruits, veggies, meat and seafood and you can freeze the remainder of the food. This helps to prevent waste.

It is a good idea to freeze your food according to portion sizes. Different sizes of freezer bags come in handy for everything from freezing berries to peas to chicken to salmon. Label the bags so you know what each item is. You will be glad you did this when you get ready to make a meal.

Four. Do not overstock your freezer as this can make it difficult for air to circulate and it can also make it harder for you to find the foods that you are looking for. You also might end up forgetting what is in the very back of the freezer which could lead to the food being in there too long and getting freezer burn. This could also mean that instead of choosing something for supper in the freezer you will head out to the store. Food you already have stored will get wasted this way.

Image: Ambro / FreeDigitalPhotos.net

Controlling Your Urge to Spend Money

2012-05-05T19:29:00.000-07:00

You earn money and then you want to spend what you have earned. Such is the case with many people. Earn and spend, earn and spend. But if you want to save some money for a rainy day or invest your money in the future, you have to get off this spending merry-go-round.

It seems that we are all hard wired to want what we want RIGHT NOW! We often purchase things so we can look a certain way and can keep up with the current styles. Everyone wants their socio-economic status to be on par with their peers. However once you begin to spend or catch the wave of spending it is often difficult to stop. But it is not impossible to do so. It is spending or abuse of spending that tends to be at the root of most people’s financial problems as opposed to low incomes, which is contrary to popular belief.

How then do you break the urge to spend money as fast as you earn it? Let’s face it; we all want to have control over what we spend our money on. The answer lies in looking at the ABCs of the financial equation.

What are the ABCs all about?

“A” stands for adding up the value of the purchases you wish to make while “B” stands for breaking through the commercialism and all of the television, magazine and online advertisements associated with products and services. Finally “C” stands for comparing the alternative solutions you have to not spending your money.

Let us take a closer look at the ABCs of this financial equation and see how it all adds up:

Always take the time to add up exactly how much an item you wish to purchase is valued at. How much did the product cost to make from start to finish? Is the product of high quality or not? Is this a product that you will get a lot of use out of and is therefore worth the cash you will spend on it today or not? Never buy anything that will only benefit you in the short-term. Think long-term value instead.

Break through what advertisers would have you believe. Advertisers will tell you whatever they think you want to hear in order to get you to spend your hard earned money to purchase a product. Refuse to be swayed by fancy words or fancy advertising (and often misleading) ploys. Wearing a specific brand of clothing or using a certain brand of shampoo or washing your clothes in a specific laundry detergent will not make you more attractive, happier, more successful or more popular. Don’t believe everything you are told.

Compare one alternative to another when you shop. Yes, you could spend your money now but you have other alternatives such as you could save your cash for a later date, a special occasion or for a bigger purchase down the road. Decide what matters most to you and do that.

To control the urge to spend, spend, spend put the ABCs to work every time you are thinking about buying something, whether it be a new coat, a new desk, a new refrigerator or a new computer. This will help you keep more of your money close at hand.

Image: Stuart Miles / FreeDigitalPhotos.net

10 Tips for Doing Laundry on the Cheap

2012-05-01T18:30:00.000-07:00

Doing laundry is not as cheap as it used to be. But there are ways that you can reduce the cost of getting your clothes clean. Here we look at 10 tips to help you to save money when laundry day rolls around!

One. Wait until you have a full load to do your wash. A partial load wastes energy and water at the same time. If you live in a busy household and you have kids then it should not take too long for you to have a full load to do.

Two. Wash your clothes in cold water. There are plenty of detergents that you can buy for cold water wash (such as Tide for one). Washing your clothing, bedding, towels and the like in cold water will not only save you money on water and electricity but it will also extend the life of your clothing.

Three. There is nothing like the smell of fresh air on your clothing when you bring them in from outdoors. If you live in a house and you are able to hang up a clothesline then do so. The breeze and the sunshine will dry your clothes as nicely as can be. Not only will they dry naturally but they will smell great and wrinkles will be practically nonexistent.

Four. If you live in an apartment then you can create your own clothesline in the bathroom and air dry your clothes or else you can buy a clothes horse and hang your clothes on it anywhere that you have the room for it. Air drying is particularly good for your home in the wintertime because it puts moisture back into the air.

Five. There is not a great deal of difference between name brand laundry detergents and generic store brand ones. Sometimes we get used to a certain brand and become stubborn about changing but if you give some of the store brands a try you will save some money and you might be pleased to find a new brand and a new scent that you really like.

Six. If you like to use fabric softener then try one of the cheaper generic brands or else use white vinegar. A half a cup of vinegar is all that you need per load.

Seven. For those who use fabric softener sheets experiment with store brands as opposed to the more expensive name brands such as Downy. This is a wonderful brand that smells lovely but cheap it is not! Fabric softener sheets can be used more than once so do not throw away the sheets after just one use. Reuse them the next time you do a wash.

Eight. An alternative to fabric softener sheets is dryer balls. These odd looking balls can be purchased at most department stores such as Wal-Mart and at most dollar stores. They help to dry your clothes faster and they separate them better as they dry. You still may need to use a fabric softener sheet however.

Nine. Only use your clothes dryer when you absolutely have to. This will save you money and it will extend the life of your garments. When something is not quite all dry taker it out of the dryer and hang it over the shower curtain rod or hang it on a plastic hanger so it can finish drying.

Ten. To ensure that your dryer is running safely and efficiently make sure that you clean out the lint trap every time you use it.

Doing laundry on the cheap is much simpler than you may realize. Once you put these tips to use you will find that saving money becomes a whole lot easier!

Image: tongdang / FreeDigitalPhotos.net
Image: africa / FreeDigitalPhotos.net

Money Saving Ideas for Around the House

2012-04-30T20:57:00.000-07:00

There are lots of things you can do around your home to save a few dollars. Easy budget ideas can help you to spend less on many different items that are necessities in your home.

Bathroom

Don’t get carried away in your bathroom with buying pricey items. Spend more money on the items that have the greatest impact and less on smaller and less obvious things. A quick, easy and affordable way to perk up your bathroom is to invest in some new plush towels (all one color or different colors- your choice). You may also wish to purchase a new floor mat, toilet seat cover, bath mat or shower curtain. A brand new look will be yours once you make these changes!

Bedroom

If you want to change the look of your bedroom and purchasing new furniture is out of the question then make some positive alterations to the focal point of your bedroom, which is of course your bed. Buy a new comforter (preferably one that is on sale) and some new sheets. Buy whatever you can afford to spruce the room up!

Kitchen

To save money and help out the environment stop purchasing paper towels for clean ups, spills and general cleaning in the kitchen, bathroom and elsewhere in your home. Instead use old towels, facecloths and old tee shirts to reduce waste and to prevent the need to include paper towel on your grocery list.

Kill germs on your dishcloths by tossing them into the microwave for a few seconds. Just make sure it is only a few seconds though! The sponges you use regularly in your kitchen will sanitize nicely if you place them into the dishwasher with a load of dishes every few days. This will give you a few extra weeks’ worth of use before you have to start using some new ones.

Once the dishwasher has done its final rinse open the door up and pull out the racks of the appliance. This will allow the dishes the opportunity to air dry and will save you money on your electricity bill.

Extend the shelf life of as many foods as you can by storing them in the freezer. You may be used to storing loaves of bread, bagels and muffins in the freezer but did you know that placing your herbs and spices in the freezer will make them last longer and help them retain their freshness? It will. Try it and see!

Living Room

If you want to update your living room but the money you have to spend is slim then some new pillows can add more color to a room that has gotten to be a bit on the drab side. Inexpensive pillows with some new colors and designs can breathe new life into your living area and can also be strategically placed to hide stains, and marks that show wear and tear on your furniture. If you do not want purchase new cushions then buy some inexpensive pillow covers.

Perk Up Any Room

Nothing perks up a room more than a coat or two of paint. Try a new color you have never tried before. You might even want to experiment with something a little bit bolder than you usually go with. Or if you are not in an experimental mood then stick with a basic color that goes with everything, such as eggshell or cream.

Once you have your walls painted a new shade and looking clean and fresh then you may wish to find a way to decorate them for as little money as possible. Instead of spending money that you do not have on pricey art buy some inexpensive frames that are the same color but different sizes and then frame your favorite pics and place them in an attractive arrangement on the wall(s).

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How Other People Get You to Spend Your Money

2012-04-29T20:18:00.000-07:00

Do you spend your own money because you choose to or do others play a role in how, when and where you spend? You might be surprised that you money is not always about you …

Money is more than just what we use to buy products and services, and finance our life. When you think about it money has a language all its own. Money is wrapped up in what we can afford to do or not do and money is a symbol of how well a person is doing on a socio-economic level. In trying to keep up with the Joneses’ (or so the saying goes) many people end up in debt.

A Powerful Tool in Our Hands

Money is a form of currency that is a very powerful tool as it sends a message to other people. For those who have plenty of cash and can afford to spend without going into debt they can impress others with ease while for plenty of other people who fall into the “have not” group they rely on such things as loans, payday loans and their credit cards to get them the funds to buy what they feel they need to send the right societal message to others. Of course that message is that they have arrived so to speak and can afford the finer things in life- even if in reality they cannot.

Invisible Peer Pressure

There are other instances where other people influence people in the direction of spending their money. Sometimes in the work place an event is going on and a person does not want to appear as if they cannot afford to attend so inadvertently they feel an invisible kind of peer pressure that causes them to spend money on dinner theater tickets or an expensive meal at a restaurant because they do not want to feel left out of the group or out of the loop. Nobody enjoys this feeling, especially when they arrive at work on Monday morning and the office is abuzz with the social event of the year that took place on Saturday night and they were the only one who did not attend because they had no money to do so.

Chastised for Buying Cheap

Others sometimes inadvertently get people to spend their money when they chastise them for buying cheaper or more generic brands of products instead of automatically purchasing the very best. This can be the case when it comes to almost everything, be it tires, household supplies, wine, clothing, shoes, groceries and so on. We all want what is best for other people but sometimes a person with the financial means to buy something will not realize that their friend or loved one has less means to do so. No one enjoys saying to another person, “I can’t afford that” and if it is spoken it is always done so in a hushed or whispered tone. Trying to keep up to others standards is a common way that people spend money they do not really have.

Use your own mind and be your own guide when it comes to your money. Don’t part with it unless you really want to.

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Cashing in on Fabulous Finds at the Flea Market

2012-04-29T19:22:00.002-07:00

If you are looking for something a little different for your home or for yourself then flea markets provide an alternative to shopping at retail stores. Flea markets have a little something for everyone and the fun part is that you never know what you are going to find!

When you decide to stroll through a flea market you need to have a sharp eye that will be able to spot the deals and the not-so-great deals right away. It also helps to know how to bargain because unlike retail stores those who sell at flea markets are open to negotiating prices and some even welcome it from there customers!

Here are some other important things to consider as you prepare for a morning, afternoon or full day at the local flea market:

Inspect Everything Before Purchase

You shouldn’t have to worry about bringing any fleas home if you have a discerning way about you! Inspect every item that interests you carefully- very carefully. Everything you purchase from a flea market is an as-is purchase. Check to see if any clothing shows the signs of age, plug in all electrical items to make sure they work, check to see if all glass items are free or cracks and scratches and so on. You cannot take an item back once you have purchased it so make sure it is in good shape before you leave with it.

Dress Comfortably

Wear comfortable clothing and a comfortable pair of walking shoes when you go to a flea market because you will be doing a fair amount of walking. Whether the flea market is inside or outside or both there will be lots to see and lots of ground to cover. You may find yourself bending down to sort through boxes so you don’t want to wear anything that you are afraid to get dirty. Make sure you bring your sunglasses as well as a hat. Too much sun can zap your energy and it can cause lead to sunburned skin. Ouch!

Arrive Early

If you are not an early riser on weekends then you may wish to make an exception on the days when you want to stroll around the local flea market. The good stuff goes fast and first so be one of the savviest flea market shoppers by arriving early! If you arrive too late then the selection will be less and everything will be picked over.

Make a List

Before you head out to look for bargains and treasures make a list of what treasures you are looking for. You do this when you shop retail and when you shop online so why not do the same when you shop at the flea market? When you do this then it prevents you from overspending because impulse buying does not take place. Just make sure that you don’t leave the list at home.

Bring Cash in Small Bills

You will be paying in cash at the flea market and small bills are the absolute best for this type of shopping venture. Having $20 bills on you is good while $10 bills are even better and $5 bills are even better. Your bargaining power is much greater if you have smaller bills on you. As well it is easier for sellers to make change the smaller the bills are that you hand them.

Bring Your Own Bags

The flea market experience can be very rewarding but the more prepared you are the better. It would be very helpful if you brought your own bags with you. Vendors should be prepared as well with their own bags but if they run out then you can step in with your own. Bring a few plastic grocery bags with you or bring a reusable bag or two for your wares.

Have some fun!

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Eating Healthy on a Budget- Make it Happen!

2012-04-28T18:24:00.003-07:00

Healthy eating often seems out of reach for the person who is watching their nickels and dimes. It does not have to be an impossible feat if you take the time to do some planning and if you know where to shop and are willing to put in the prep time in your kitchen.

Here are some ways that you can eat healthy on a budget and maybe even have fun doing it!

Shop at Farmers’ Markets

If you are used to shopping at the grocery store for your food and nowhere else then start scouting out the farmers’ markets in your area. If it is healthy food that you want then the local farmers’ market comes out miles ahead as one of the best places to do your shopping. Compare prices at the market with the prices at the local supermarket. Load up on fresh fruits and vegetables. Depending on what you buy and how much you buy you could save yourself more than a few dollars as compared to visiting the grocery store. Freeze what you do not plan to eat right away.

Shop Seasonal

The cheapest fruits and vegetables at the local market in your city or town are those that are in season. Know what is in season and plan your meals around those selections. Make sure that you sort through the produce to find the best of the bunch. This is true regardless of whether you are talking about apples, avocados, tomatoes or zucchini. Stock up based on the most cost savvy deals for the week. This will ensure that less money leaves your wallet during your shopping trip!

Stick with Basics

Don’t be seduced by all of the items that you have never tried before and would like to try. Maybe you have never sampled eggplant or dragon fruit but if you are watching your money then sticking with the basics is always best. Make sure when it comes to produce that you have enough to put together a nutritious meal. Examples of foods that you may wish to pick up ahead of others include onions, potatoes, lettuce, broccoli, carrots, tomatoes, some greens and one or two fruit varieties that are currently in season. Limit your choice of “new” items if they do not fit easily into your prearranged meal options.

Shop Bargains and Sales

Meat and fish are often the most expensive items on a grocery list. Regardless of where you purchase these food items from search out the bargains. Only buy certain types of meat or seafood when there is a sale going on. Come up with a plan of action for the meals to come in the days and weeks ahead and then purchase the sale items accordingly. Freeze the meat and seafood that is not to be eaten right away.

Scope out the Deals for Staples- or Buy in Bulk

Some food items are staples and can be purchased at a variety of stores. These include dry goods such as cereal, butter, pasta, rice, etc. Find out at which store the best buys can be found. Look for bargains by way of weekly store flyers. If making it to the cheapest store is not an option for you because of distance or transportation issues then buy dry goods and other staples in bulk and buy as much as you can at once. This can turn out to be more economical for you in the long run and it also will cut down on your shopping time because you won’t have to go out as often to buy the things you need.

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Living From Paycheck to Paycheck? - Changing Your Reality

2012-04-27T20:48:00.000-07:00

Living from paycheck to paycheck with little to no savings is a reality for many people. So is barely managing to make ends meet. Are you one of these people who live this reality?

These are the people that have little if any savings and are not financially prepared for an emergency or an unexpected family situation because they are too busy struggling to pay their bills from one paycheck to another. Often the money from one paycheck is not enough to tide them over until the next so that is when they use their credit card to pick up the slack such as in using it to purchases groceries, medication or other necessities of life.

Living from paycheck to paycheck is not an enviable way to live and no one willingly chooses to live this way. There are a variety of ways that a person can break this cycle so they are not simply surviving in their life and struggling to keep their head above water but are instead thriving.

Goodbye to Unnecessary Expenses

First of all figure out what you spend your money on and cut out unnecessary expenses. Never overspend and if you are just managing to get by do not go out and splurge on anything.

Supplement Your Income

If your full-time job is not making it possible for you to do anything more than live from one paycheck to another then consider looking for a better paying job or else look for a part-time job to supplement your income or other creative ways to bring in more income. For example, many people have an entrepreneurial side and get involved in small businesses, whether it be their own or someone else’s. Perhaps you can sell Avon in your community or maybe you can take your crafts to local craft shows and make some extra money on the weekends.

Be Creative- Think Outside the Box

Think outside the box and you will come up with creative ways of bringing in more cash to help you out. Many businesses are looking for extra help during the Christmas season so that might be something you might want to look at. If commuting costs are eating up a lot of your income you might want to look at carpooling or taking the bus as opposed to driving to work every day.

Become Budget Savvy

Take the time to learn to budget properly and then make a commitment to stick to the budget. It is fine to allow for a certain level of flexibility but be strict with yourself as well. This can go a long way in ridding yourself of the paycheck-to-paycheck vicious circle.

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Is Everything That is on Sale Really on Sale?

2012-04-27T20:21:00.000-07:00

You are flipping through the store flyers and you come across some items that look like really good deals. This is just what you need today- a really good sale! But look closer, everything that is marked “on sale” is not necessarily “on sale.” Or did you think it was?

Let us look at this now.

The word “sale” is synonymous with getting a bargain so sometimes we make the mistake of assuming that if something is on sale then it is worth spending money on. This is especially the case if something is marked 50 or 60 % off. But is it not always the deal you think it is. It is important to not just spend money randomly just because something is marked on sale. If you would not buy an item if it were at its normal price then how much do you really want it?

On Sale? - Not!

Do not be blinded by the “on sale” sign. This does not necessarily mean that you will get good value for your money. Even on sale many products can still be very costly. Bear this in mind when you go shopping. One store’s idea of a sale might not fit into your budget and if this is the case then you should go elsewhere. Never let yourself be coerced into purchasing something on sale from a salesman or store clerk. Instead stand your ground and be polite and then go somewhere else that you can afford.

Some companies seek to rip off their customers and then turn around and use fancy advertising ploys to encourage business. Be wary of ads that read “30 percent savings off of the original price” (or it could be 25, or 40 or 50 percent). While you may be getting a percentage off of the original price, if this is not a store that you are inclined to shop at then how do you know that the original price showing on the advertisement really was the original price? Some stores will put up the original price in order to have a sale and then people think they are getting a good deal because it is 20 percent off. These scams are easy to pick out if it is a store you frequent or a product that you are inclined to buy on a regular basis.

Marketing Ploys, Not Real Bargains

Sleazy marketing ploys abound in the marketplace such as when a company extols the virtues of a product and says that this product will save you time, energy and money. They then will charge the customer $12.95 for a product that costs the company no more than two or three dollars a bottle to produce. They might even offer a free gift to encourage you to buy the product again and make it appear as though you are getting an incredible deal. Make no mistake- you are not. For example it might be a cleaning product that you could just as easily make yourself with a variety of ingredients you have lying around your home.

Don’t be fooled- some sales parade as sales but are really not! On the other hand there are sales that are totally legitimate and above board. The important thing is to become a conscientious shopper who is able to distinguish between the two.

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Energy Saving Tips for Your Kitchen

2012-04-26T20:40:00.001-07:00

Saving energy in the kitchen is easier than you might think. The kitchen is a homey and inviting room where we spend a fair bit of time preparing our tasty meals and experimenting with new culinary masterpieces to delight our loved ones with.

If you want to stop wasting energy in your kitchen then there are things you can do right now to change this. In saving energy you will also save yourself money!

What can you do?

When you are using your oven keep the door shut as much as you possibly can. If you want to check on your casserole or the yummy chocolate chip cookies you are baking then turn the oven light on and look through the glass door instead of opening up the oven to peer inside. Every time you open the door to have a look heat escapes. Uh oh!

When you are using your stove keep lids on your pots and pans as much as you can. This helps to reduce heat loss. When you are boiling something turn the heat down once it starts to boil. You probably do this as per the recipes you follow but in case you don’t start doing it today.

If you cut food into smaller pieces as opposed to larger pieces it will cook faster and this will reduce your cooking time. Do this with meat and vegetables.

The warm foods you have left over from a meal that you want to save for the next day need time to cool before they are placed into the refrigerator. Not only will this save energy but it will prevent the development of bacteria. Make sure that leftovers are eaten soon after bring refrigerated. They will keep for a day or two but not a week or two!

It is more energy efficient to cook large portions of food all at once as opposed to cooking small amounts at one time. If you freeze some of the food you have prepared and place into individual containers then you will have ready-made meals that you can take out of the freezer at a moment’s notice and reheat in the microwave. Lunch or supper will be ready instantly!

Make sure that air is able to circulate around the back of your refrigerator and your freezer. If possible do not place either one of these appliances close to a source of heat. You should also try to situate your large appliances where they will not come in contact with direct sunlight.

Check the temperature of your refrigerator and your freezer. You want to set them both at the appropriate temperature which is not too cold and not too warm. When you set these appliances to the right temperature you will not overuse energy and you will know that your food is being stored effectively temperature wise.

When opening the door to your fridge or freezer don’t linger too long. Keeping the door open too long will allow energy to escape.

When buying a new dishwasher, freezer or refrigerator purchase one with the Energy Star logo. This is your guarantee that you are selecting the most energy and water efficient appliances on the market.

Purchase a dishwasher that is sized correctly for the needs of your household. For instance, if you have a large family then choose a full-sized dishwasher. For a smaller family go with a dishwasher that is compact in design.

Only use the dishwasher once you have a full load to wash. A half load setting will use more than half the energy of a full load of dishes. This increases your costs tremendously!

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Set Sail for a Cost Savvy Cruise- Away You Go for Fun and Sun!

2012-04-25T19:15:00.000-07:00

A cruise might sound very appealing to you right about now as you look around your office at the mounds of paperwork that await your attention and review. If you are in need of a break and you feel a sense of longing every time you visit your favorite travel website then why don’t you think about setting sail on a discount cruise?

Cost savvy cruises and vacations are the way to go for anyone who wants to save a few dollars while still enjoying themselves on a much-needed vacation. If it is an affordable vacation that you seek then it is something that you will be able to find with a little bit of effort.

Planning Stage

Your first goal for a discount vacation is the planning stage. Focus your attention on booking the very best deal that you can. When it comes to cruises, timing is of the essence. The very best deals are made well in advance or very late. For example, booking as much as a year ahead will land you a good deal but also waiting until the last minute, such as two to three months before the start of the cruise may also net you a good price.

Most early bookings will need to be planned by way of the cruise line or else through a travel agent. On the other hand, last minute deals are generally to be found over the Internet by big Internet discounters. As a general rule, late bookings can yield low prices if your schedule is flexible enough to accommodate this option.

The stateroom of your choice is paramount to your travel plans. If you do not plan to be spending much time in your room then you can save money on fancy staterooms that offer extras such as verandas. You might even want to go with a stateroom that has no windows to save even more money. All the little extras can really add up to big bucks. Smaller cabins can be just as comfortable and modern as more lavish rooms but they cost a great deal less. Decide what matters most to you and work from there.

Discounts and Specials

Next thing on your travel agenda is to find out the best way to get discounts or specials being offered. As a general guideline the most eligible people for cruise discounts are individuals travelling in a large group; people over the age of 55; people who presently are in the military or who are retired military members; and those who have sailed with the specific cruise line in the past, whether it be once or more than once. Some cruise lines also have discounts for people with children and students.

Not all policies at all cruise lines are the same so do your homework before you settle on the one you wish to take your discount vacation with. Another key point is that off-season sailings can often bring great savings, as can special "repositioning" cruises. For those unfamiliar with these types of cruises, this is when ships travel from one particular locale to another. For example if a ship travelled from South American and then to the Mediterranean or if it went from Alaska and then directly to the Caribbean.

Save Money Onboard

The next important point when it comes to affordable cruises is to be aware of the ways in which you can save as much money as possible once you are onboard the ship. Some cruise lines offer cheap rates for cabins and then expect that the deficit in cost will be recouped by way of all of the little extras that passengers are likely to purchase.

These extras can add up to lots of dollars for the average passenger if they do not watch their budget. Some of these items include casino gambling, spa treatments, alcoholic beverages, souvenir pictures, postcards and restaurant meals, etc. One of the most expensive of all extras is the organized excursion to shore when the ship docks at an exotic locale. All of these add-ons are very costly so it is essential that you set a reasonable budget for yourself and then stay on course with it.

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Controlling Your Debt Destiny- You Can be in the Debt Driver’s Seat!

2012-04-24T21:25:00.000-07:00

If you are up to your ears in debt or worry that you could end up that way then you need to know that it is not an inevitability that debt could end up in the driver’s seat of your life! You can still be the driver!

Whether or not you end up in debt is not simply a roll of the dice. While getting into debt is sometimes due to mitigating circumstances it is still within your grasp to be in control to the best of your ability. It is important to control your debts and not let them control you. Controlling your debt destiny is about making the right choices and being disciplined when it comes to how your money is spent. Controlling your debt destiny also involves being aware of how much money you earn on a monthly basis and knowing when all of your bills are due to be paid.

Overspending is a No-No

Surprising to some people, it is spending too much as opposed to earning a low income that is at the root of most financial problems that lead to debt. Some life problems cannot be planned for such as loss of employment or a loved one getting sick but for a great majority of people it is spending that causes the problem, or more to the point, overspending. The key to learning how to handle money is not learning how to spend it wisely but instead learning how “not to” spend money.

It seems to be a fact of life that the more money a person brings in, the more money he or she spends. This includes everything from a larger home, to a better car to a newer computer to a bigger television, etc. The little everyday purchases can increase as well and all of these items can add up very quickly.

Many people find that although their income has increased they feel as if they are bogged down by too many debts. Spending is usually the culprit in this case. You will never get ahead if you keep spending and spending, no matter how much money you are earning. A high-income earner can find themselves in debt as easily as a low-income earner.

Define Your Monetary Goals

One of the ways to prevent this from becoming your lot in life is to define your monetary goals and then faithfully adhere to them. If you are saving to take a trip in a year’s time then don’t go out and charge a 53-inch plasma television on your credit card, especially if there is talk of potential layoffs at your workplace.

When you are tempted to spend clearly visualize your goals in your mind and hold that picture there. Keep it steady and keep it firmly cemented in your head. Then fight the urge to spend your hard earned dollars. You can do this! Determine to win and set yourself on the right course. By so doing you will be in control of your debt destiny. It will be you sitting in the driver’s seat and you will leave debt in the dust.

You are in control of your debt destiny- repeat that to yourself!

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Who is in Control, You or Your Debt?

2012-04-24T20:51:00.000-07:00

Are you in control of your debt or has your debt taken control of you?

Sometimes it is not always easy to know who is in control of your money- you or your debt. If you have reached a point where you even have to ask who is in the driver’s seat financially then you are in far too much debt.

In order to get back in control of your money and learn to do more than just make ends meet you need to first not panic. You need a level head in order to gain control so do not lose your head over your financial state of affairs.

Prioritize Your Bills

Sit down and take the time to prioritize your bills. Do this by taking a hard look at your present financial situation. Figure out how much you earn on a monthly basis and where your money is being spent. Then figure out what your monthly expenses are and work from there. Before you can take back control you have to know exactly where every cent you earn is going.

Budget Your Bucks

Learn how to budget your money, as the majority of people never know for sure where their money is being spent. This could mean that you are wasting money needlessly and do not even know it. It is important to pay attention to what is happening with your money. This is as true for high income earners as it is for low income earners. Even if you decide on a very basic system of budgeting, find the one that works for you and then faithfully adhere to it.

Curb Excess Spending

It is important to curb excess spending as fast as you can. Whether your indulgence is eating out at restaurants, new shoes or new electronic gadgets, you need to stop overspending in order to gain control.

Stop Spending More than You Earn

In order to get ahead it is vital that you stop spending more money than you earn. This is a very simple concept that can be difficult to put into play. It is not wise to just go shopping because you are bored or just want to look around because you are liable to spend money you do not have.

Go to the mall only when you have an intended purchase in mind. This will help keep you on track. The same is true of grocery shopping. Have you ever gone to the grocery store intending to buy three or four items and come out with 15 or 20? This can happen so easily but don’t let it get the best of you. If you need three items that will cost approximately $12.00 then don’t come out of the store with 12 items that cost $30.00.

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A Simple Guide to Understanding Interest Rates

2012-04-23T21:10:00.001-07:00

You need to understand how interest rates work when it comes to dealing effectively with the money you work hard to earn. This is the case if you want to be a credit card holder. The same can be said if you plan to buy a car, a home or apply for a loan or line of credit with your bank. You need to understand interest rates for every bill you need to pay!

We all need a basic understanding of what interest rates are and how they work. Even if you do not have a head for figures the basic math behind interest rates is something that everyone can learn, and indeed needs to learn for all future money matters.

What is Interest?

In its most basic form, interest is money that is above and beyond the principal of money that is borrowed. If you borrow money from someone who is deemed a lender of money then you have incurred a debt and it is necessary to repay the debt. Interest will be charged on your account based upon the amount of money that is owing.

What interest is can be explained like this:

Interest is a percentage of the total owing on the debt and this is periodically added to the total outstanding balance as a type of fee for the privilege of using the money. Interest is not a one-time thing but it continues to add up until the point at which the debtor pays the debt in full.

What is an Interest Rate?

An interest rate is the exact percentage of the total debt that is charged to the account. Interest rates are something no one can escape if they choose to borrow money in any manner. Interest rates are charged on loans, credit cards, mortgages, utility bills, medical bills and so on. How much interest is charged on each individual item varies and the credit histories of each consumer also play a role.

Understanding Interest Rates

Before you even consider taking out a loan or applying for a credit card, it is important to understand how interest and interest rates work. If you do not take the time to learn about interest then you will not have a clear idea of what your debts are actually costing you to pay off and you might find yourself extremely frustrated that your balances decreases at an extremely slow rate despite the fact that you pay your bills as faithfully as possible.

Two Types of Interest

There are basically two kinds of interest. They include simple interest and compound interest. Here we will look only at simple interest in order to better understand how interest rates work.

Simple interest is just that- it is simple and straightforward to comprehend. Simple interest is also sometimes called “flat rate” interest and it is a percentage of the complete balance that a debtor owes to a creditor.

The formula for calculating simple interest is as follows:

Interest = Principal x Rate x Time

To use a practical example, if you borrow a loan for $1000 and the yearly interest rate attached to the loan is 15 percent then this means that after one year has gone by, the debtor would owe $150 in interest charges. This equation looks like this:

1000 x .15 = $150

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Coping with Your Debt Worries Before Debt Overtakes You

2012-04-23T20:37:00.001-07:00

There you go again- worrying about your debts. This is getting out of control and your health is starting to pay the price due to sleepless nights spent tossing and turning and too much caffeine. You no longer feel well anymore. Are your worries about debt making you sick?

The Heavy Toll Debt Takes

Debt is a tremendous worry to a large percentage of people. Not only can debt ruin your life in the present and into the future but it also can exact a terrible price on your mental state. It can cause problems both at work and in your relationships with loved ones and friends. A study done by Ohio State University in 2002 showed that many individuals spend a great deal of time worrying about debt and credit card debt is the greatest source of this type of worry. Studies have also shown that people who worry about debt because they are in a great deal of debt tend to be less physically and mentally healthy than do individuals who have no money concerns.

Debt Worries Equals Health Worries

Research studies give a clear indication of what worry over debts can do to an individual’s life. Besides anxiety, angry outbursts and lack of concentration and productivity at work, worry over debts can lead to weight gain, insomnia, heart attacks and the destruction of relationships. The mental anguish of debt can manifest itself in physical problems in that simple everyday tasks such as walking up stairs, cleaning the house or carrying groceries can become tedious. Studies have shown that the debt-to-income ratio is significantly connected with impairment levels that are higher than average.

The Shadow of Debt

Worrying over debts can take over a person’s world and can color their views on everything. It can cast shadows over all that is good in a person’s life. Suddenly the future can look very bleak and it can exact a terrible cost on the individual’s life. Worrying over debt can bring up feelings of tremendous frustration and anger in many situations and it can cause depression to set in. Depression can also be accompanied by feelings of guilt and shame, which can eat away at a person’s level of self-esteem. The person who has gotten into debt can feel miserable and worthless all of the time. Debt and the subsequent worry that ensues can damage a person’s life and can lead the person to become isolated from others because of the mistakes they have made.

Get Help!

If worry over debts is destroying your life then refuse to let it control your life any longer by seeking help. Gain some referrals from people you trust and then sit down with a professional credit counsellor and explain your financial situation and see if a reasonable plan for the repayment of your debts can be worked out. Doing nothing is the worst thing you can do when it comes to your debts.

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