Recent statistics indicate that about one out of every six car loans now run 73 months or longer – all the way up to 97 months.

Should you really be taking out a 97-month loan on a car?

The shift is part of a collective effort by car companies to keep monthly payments below $500 at a time when the price of an average new car price has risen to well above $30,000. But from a consumer standpoint, let’s discuss the impact of longer car loan terms on your finances, and in particular the 97 month car loan (that’s eight years and one month).

Should you even consider a 97-month car loan?

The primary and most obvious benefit of a 97-month car loan is in keeping the monthly payment to an absolute minimum. This is the effect of stretching the payment out over the longest possible term. A $25,000 loan for 97 months at 4% will be $302 per month. This looks seriously attractive when you consider that the same loan over 60 months will require $460 per month.

But is that as good a deal as it looks? Here are some facts to consider:

1. The car will depreciate faster than the loan will amortize.

One of the biggest risks with long term car loans is that the value of the car will drop faster than the loan will amortize. According to Cars Direct, new cars typically depreciate by 20% as soon as you drive them off the lot, then at a rate of about 15% per year for the first five years (after that they depreciate at much lower rates).

Let’s use those rates in connection with a brand new car bought for $30,000 with a $25,000 loan spread over 97 months.

After two years, the loan will be paid down to $19,544.

But the car will drop even lower. It will lose $6,000 as a result of the 20% loss from driving it off the lot – to $24,000 – then by 15% in each year. That will drop the value of the car to approximately $17,340 after the first two years. That’s means that you will be “upside down” (negative equity) on the car to the tune of about $2,200 just two years in.

That status will continue for the first few years of the loan, making it impossible to either sell or trade the vehicle for another.

2. A longer loan term means you’ll pay more money in interest.

An important point that is often missed when it comes to loan terms is the fact that you will pay more interest the longer the loan term is. Continuing our example of a $25,000 loan at 4%, you’ll pay a total of $2,625 in interest over the course of a 60-month loan. But if you extend the term to 97 months, you will pay approximately $4,300 over the life of the loan.

What that means is that you will pay nearly $1,700 extra for the same car as a result of taking a longer loan term. Sure, your monthly payment may be lower, but you will pay more in the long run. And interest on car loans is not deductible for income tax purposes!

3. You’ll likely need a major car repair or two before the loan is paid.

There is a tangible reason for the widespread popularity of 48 and 60-month car loans. A car purchased new can generally be expected to go for about four or five years before needing significant repairs. But once you go beyond five years, not only do repairs become more frequent, but they also become more costly.

At that point, you will begin needing to replace major components of the car. And you may even find that you will need to make some heavyweight repairs, such as replacing the transmission, as you approach the eight-year mark. Once again, the long-term cost of operating the vehicle will rise as a result of needing to keep the car longer.

4. Your job might not last as long as the loan.

I think most people understand that job security doesn’t exist in most career fields. Five years is a long run on a job – how does that match up against an eight-year car loan?

Now we can say that you can simply get another job; in fact, it is entirely possible that you will have several jobs over the life of the loan. But there is no guarantee that subsequent jobs will pay as much as the one that you had when you first took the loan.

With a 97-month car loan, you may be committing yourself to a monthly payment that will last longer than your income level will.

5. You will most likely replace the car before it is paid off.

Whether it is motivated by the loss of a job, a run of costly repairs, or simply the desire to have a new car, there is an outstanding chance that you will want to replace your car before the 97-month loan is paid off. If that is the case, then you’ll have to do so with less trade-in equity than you would have if you had taken a shorter loan term. It is even possible to have no equity – or even negative equity – in the vehicle at all if you decide to make the buy within the first five years.

When buying a car, understand that it’s not all about the monthly payment, as car dealers like to insist. A low payment could set you up for other problems – big ones – later on.

Would you consider buying with a 97-month car loan? Can you see any other advantages or disadvantages that I haven’t included? Leave a comment!

Photo Credit: marcp_dmoz

~$~

Related Articles:

1. Do You Know How Much Interest You Are Paying Each Month?
2. When Should You Refinance a Mortgage?
3. Comparing 15 Year and 30 Year Mortgage Terms

When my wife and I moved to our current home we got a sweetheart deal on our Internet service for the first two years we lived here ($25 a month, plus a free cable modem for two years). Unfortunately, our two year intro period recently ended, leaving me with a higher monthly service fee, and a $5 a month rental fee for the cable modem. Unfortunately, this wasn’t a fee I could negotiate. $5 a month is reasonable as far as rental fees go, as some Internet Service Providers (ISPs) charge up to $7 per month for a standard cable modem, and often more if you have an integrated wireless router. But $5 a month is still a fee I’d like to avoid if possible, and thankfully, I can. Instead of paying the monthly rental fee, I bought a router for $77, including tax and shipping. My router will pay for itself in less than a year and a half, and everything after that is gravy.

If you are currently renting your cable modem, then I encourage you to look into replacing it with one of your own. It is quick, easy, and relatively inexpensive. And it could save you hundreds of dollars over the life of the modem.

How to Replace Your Rented Cable Modem

You can save a lot of money by buying instead of renting.

Buying a new cable modem is easy – simply go to your favorite electronics store, buy a modem, and you’re done, right? Yes and no. You also need to make sure your modem is compatible with your Internet Service Provider and you need to let them know you are replacing your modem so they can map it to their network. Don’t worry if this sounds like mumbo-jumbo, it’s pretty easy.

Ensure your new cable modem is compatible with your ISP. The first step is to contact your Internet Service Provider to make sure they support the new hardware and software you are buying. I researched multiple cable modems before buying mine and I ended up buying the number two modem on my list of top rated modems. My first choice wasn’t on the list of supported modems provided by my ISP, which is too bad, because it was $11 cheaper than the one I bought. My ISPs support forums stated that others have used my #1 rated modem without any issues, however, they also stated they didn’t support any firmware updates. The modem I bought still had great ratings, so I figured an extra $11 was worth the price of avoiding potential firmware issues in the future. The modem should last me at least 3-5 years, so $11 is inconsequential over that time frame.

How to find a compatible cable modem: The best way is contact your Internet Service Provider’s customer service department, look on their website, or ask in their forums (most have an active support forums for questions such as this). You can also visit your favorite search engine and type, “Internet provider name + compatible cable modems” to find a list.

Important – make sure the modem you buy is forward compatible. There is one term you will come across when shopping for a cable modem: DOCSIS (Data Over Cable Service Interface Specification). DOCSIS is basically a data format that allows for high-speed data transfer. All most consumers need to know about DOCSIS is that they should buy a modem that is rated as DOCSIS 3.0, and backward compatible to DOCSIS 2.0. The reason is that most standard cable Internet packages are covered by a DOCSIS 2.0 modem, but the higher speed services require a DOCSIS 3.0 modem. It is likely that all cable Internet services will require DOCSIS 3.0 in the future. There isn’t a big cost difference to get the 3.0 version, so do it. It’s better to be forward compatible so you don’t need to replace your modem before its shelf life expires. Remember, the cost difference over a several years is inconsequential.

Installing your cable modem

Unfortunately, you can’t just install a modem and have it work right away. The process is easy, but you will need to call your cable internet provider to give them the cable modem MAC address and serial number so they can enter it into their system and map the signal to your device (they white list devices to prevent theft of service). This usually only takes a few minutes. This is also why you want to make sure you have a compatible device, as you may have issues with some devices not found on their list of approved devices.

In some cases you may need to have the firmware updated, which can take a few more minutes, depending on your device, Internet speeds, and other factors.

Once your modem is up and running, you can connect it directly to your computer, or to your router. You shouldn’t have to reinstall your router, but you may have to give it a hard reboot or reset it before it will recognize your cable modem. But most of the time it will recognize the new modem without any issues.

Important – Send Your Old Modem Back!

The whole purpose of buying a cable modem is to avoid the monthly rental fee, so be sure to turn in your old modem. Your Internet Service Provider will continue to charge you a monthly rental fee until you return the device, regardless of whether or not you are using it. Many ISPs have a physical location where you can turn in the device, while other companies may require you to mail in your device. If you need to send it via the postal service, then be sure to get insurance or a receipt to verify they received it. File the receipt with your other important documents until you have verified they have received the device and stopped your monthly rental fee.

Enjoy your savings! There you go – 60 minutes of work (at most!) for ongoing savings each month. In most cases, this is a great way to save money over the long haul, as most cable modems will last several years.

Cable modem image, public domain.

~$~

Related Articles:

1. We Sold Our TVs and Cut Cable
2. Ooma Telo Review – Save Hundreds on Your Telephone Bill
3. When Paying a $200 Early Termination Fee Makes Sense

I’m not really into frugal living. However, there are times when I want to save a little money – or at least get the best value for my dollar.

While I don’t really consider myself overly frugal, I am careful not to spend money on things that aren’t important to me. If I think it’s important, or interesting, or enjoyable, I’m willing to spend.

But, in order to have the money to spend on the things I want, it sometimes means spending less on other items. Here are some creative ways to be frugal and save money.

1. Preserve your produce.

One of the biggest money leaks is in eating out for convenience. If you don’t have what you need for a meal, it can be tempting to just get takeout, or to go out to eat. You can cut back on this impulse by preserving your produce.

Whether you buy produce at a farmer’s market, at the grocery store, or grow it yourself, it’s possible to preserve it. You can freeze or bottle a number of produce items. This can provide you with a quick meal idea later on.

You can also use a cookbook that features six ingredients or less, or use a food substitutions bible to help you make dinner using what you already have in the house. This can save you time and money over going out to eat.

2. Change your home entertainment sources.

You don’t have to throw your cable TV out the window to save money – but you can still get creative!

My husband and I are in serious talks to get rid of satellite (finally!). You can get creative with your home entertainment by using streaming sources like Amazon Prime ($79 a year, instead of paying that a month), Netflix, Hulu, and more. You can also get a device like Roku to help you stream. Many recent TVs include HD tuners that allow you to get local broadcast channels in high definition.

Another creative way to save money on home entertainment is to do something else. Find other activities to do instead of watching TV, whether it’s playing a game, doing a puzzle, or even just having a conversation. Anymore, doing anything other than watching TV is considered “creative.”

3. Track your credit card spending in your checking account.

One way to earn more cash back, and to save money over time, is to use your cash back credit cards for most of your purchases, including utility bills. However, this only works if you pay off your bill each month.

Sometimes, when you use a credit card, your spending can get out of hand. It’s difficult to keep up with the spending sometimes, and studies indicate that we spend more when we have plastic. One creative way to stay on track of your credit card spending, and avoid spending more than you intend, is to deduct the money from your checking account. That way, you know that you will have enough to pay off the credit card at the end of the month, since you will be consciously keeping track of your spending. (And the best way to save money is not to spend it in the first place!)

4. Think of your spending in different terms.

If you want to curb your spending and save more money, think about your money in different terms. Some people think of an expenditure in terms of hours worked. Think of how much you earn in an hour. Then convert your spending into hours it would take to “pay off” the cost.

If you make $25 an hour, and something costs $75, you have to work three hours to pay that expenditure off. Is it worth it? If it’s not, save the money rather than spend it.

You can also use another price anchor. Think of something that you like to do. Maybe you get a great deal of enjoyment out of going to the movies and having popcorn. When I go to the movies, I spend about $20 for my ticket and concessions. I can use that as a price anchor. If something costs $100, I can ask myself this question: Do I want to give up five trips to the movies for this item or experience?

Put your spending in other terms. It’s difficult for us to really grasp money and costs. Connecting spending to more concrete situations can help you truly understand how you are impacted, and help you make better spending and saving decisions.

What are some other creative ways to save money? Leave a comment!

Photo credit: schmilblick

~$~

Related Articles:

1. Earn $10 Million by Not Building Model Trains
2. Entertainment Book – Special Offer
3. Frugal Living: There is No “One Size Fits All”

In today’s era of online banking and competitive interest rates, online banking has almost become a commodity. There are only a few things that separate banks from each other: brand recognition & trust, technology and features, high interest rates, and low or no fees. CIT Bank is a leader in several of these aspects.

If you are looking for a new online savings account, then take a look at CIT Bank. They offer excellent interest rates and easy online account access. To top it off, they have low minimums, and virtually no fees when compared to some of the mega banks.

CIT Bank Interest Rates – Among the Best in the Nation

CIT Bank is among the leaders among national banks when it comes to interest rates, with their base interest rate higher than most other online banks. They also offer a higher interest rate for customers who maintain a daily balance over $25,000. Current rates are 0.90% for regular accounts, and 1.05% for accounts with a minimum daily balance of $25,000 or more.

CIT Savings Accounts and Certificates of Deposit

CIT Bank offers their customers several account options:

• CIT Savings Accounts: Their are two savings tiers at CIT Bank – the standard tier, which requires a minim m deposit of $100 to open an account, and features a 0.90% interest rate, which is currently among the best you will find. The Preferred Status rate is 1.05% if you maintain a minimum daily balance of $25,000, and it is compounded daily.
• 1-Year Achiever CD: This account has a minimum deposit of $25,000, and gives you the opportunity to increase your rate of return one time during the term of your CD if rates rise. This CD is compounded daily, giving you a slight increase to your total returns. You will also have the option to add funds one time during the term of this CD.
• Term CD: These are standard certificates of deposit, with terms ranging from six months to five years. The minimum deposit for opening a Term CD is $1,000.
• Jumbo CD: These CDs have a minimum deposit requirement of $100,000. You can choose either two, three or five year terms. Rates vary by term.
• Click to find current interest rates for Savings Accounts
• Click to find current interest rates for CDs

Each of the CD options offer daily compounding, and feature automatic renewal at the conclusion of the term unless you opt to withdraw the funds.

Freedom – as in No Fees

With many banks raising their fees, it’s refreshing to see a bank offer so many free services, including:

• Monthly Maintenance Fee – Free
• Online Transfer Fee – Free
• Mail Check Fee – Free
• Incoming Wire Transfer Fee – Free
• Outgoing Wire Transfer Fee – Free (with a daily balance over $25,000, otherwise $10 each)
• Account Closure Fee – Free

Some banks are now offering free ATM withdrawals at non-network ATMs, usually in the form of a reimbursement of fees each month (up to a limit). I haven’t seen anything like this with CIT Bank, but careful planning can minimize your ATM fees or help you avoid them altogether.

Key Features

CIT Bank has a lot of great features that make it a competitive option for your banking needs. Like all good banks, their funds are FDIC insured, so you can rest easy knowing your money is backed by the US government. In addition to a variety of account options and excellent interest rates, CIT bank features strong security and excellent customer service. Customer support is available Mon – Fri from 8am – 9pm EST, Sat from 9am – 5pm EST, and Sun from 11am – 4pm EST.

The Importance of High Interest Rates

Many people gloss over interest rates for their savings accounts, but I think this is the wrong thing to do. Take a look at this savings calculator to get a feel for how much more interest you could earn on your savings by moving to a bank with higher interest rates.

Opening an Account with CIT Bank

Opening an account is quick and easy, and can be accomplished in about 10 minutes. You will need the standard information, including your SSN, drivers license, the account information of the bank you wish to link to your CIT account, and similar information. You will need to make a deposit when you open your account. The minimum for a savings account is $100. The minimum deposit for CDs is $1,000 and up, depending on which CD you open.

Like many online banks and financial institutions, CIT bank will make two small test deposits to your account. You must then verify the deposit amounts before you can officially link your account. Once this has been accomplished, you can transfer money between accounts.

What I would like to see from CIT Bank

As mentioned above, technology and features are fast becoming an important trend in online banking. Only a year ago, all a bank needed to remain competitive was security (basically a commodity among the best online banks), and the ability to sync your accounts with Quicken, Mint.com, and other money management tools.

Now, however, banks need more features to be competitive. Smartphone apps, the ability to make remote deposits from your phone or tablet, and similar features are becoming more common among the larger banks, and with that, they are almost becoming a requirement among customers. CIT Bank meets the security test, but lacks some of the other technology features that set other banks apart.

Additionally, CIT Bank doesn’t offer checking accounts or investment services (outside of CDs). So this account is better geared toward someone looking to stash some cash at a high interest rate.

Who This Account is For

Overall, I would put CIT Bank among the industry leaders in online banking, and recommend this as a great place to stash your cash if you are looking for a solid return on your savings and don’t mind a lack of a smartphone app or remote deposit via your cell phone. If you need a better mobile experience, I would recommend banks such as USAA, Ally Bank, or Capital One 360. If you are primarily interested in the interest rate and easy access to your money, the CIT Bank will do just fine.

To learn more or to open an account, visit CIT Bank.

~$~

Related Articles:

1. Sallie Mae Bank Online Savings Account Review
2. Aurora Bank Review
3. Discover Bank Review

GMail is the most useful email program I have come across. I use a single GMail account to manage about a dozen different email accounts for my business. Handling everything in one place makes for easier management and helps me keep my sanity! Aside from being able to manage multiple email accounts through one login, GMail also plays nicely with others, and allows companies to develop useful extensions users can add to their account for various purposes. I covered one of these before when I wrote about how SaneBox helps me manage my less important email.

Control how people see you

Another tool I use on a regular basis is Rapportive, which is a free GMail plugin that works with GMail and Google Apps Mail (it’s available in FireFox, Chrome, Safari, and Mailplane). When you install Rapportive, it replaces the GMail ads on the right column with a visual profile of the person you are emailing. The image at right is the Rapportive profile for one of my email accounts (I must have about a dozen of them!).

Instantly know who you are communicating with. I love this tool because it allows me to quickly see who I am writing to, and lets me quickly decide if some people are worth responding to. This isn’t about being elitist, this about about eliminating spam. I get dozens of emails every day, many of which are poorly crafted solicitations for my business. I have found that to a high degree, people who work for legitimate companies use emails branded to their domain and have profiles that show up in Rapportive. They usually have other quality signals as well, including other social media profiles such as Twitter, FaceBook, Google+, LinkedIn, etc. (Note: Rapportive is now owned by LinkedIn). Many low-quality companies and spammers use generic free GMail accounts and rarely have any additional quality signals or social media accounts.

All of the information Rapportive displays is publicly available, and is parsed together through various APIs and data sources. For example, the image you see comes from Gravatar, which is linked to my email account. If I leave a comment on a site with this email address, the image of my face will appear. To change the image people see, all I need to do is change my image hosted by Gravatar. If you don’t have a photo through Gravatar, you can sign up at here.

Rapportive also links social media profiles such as my Twitter, LinkedIn, FaceBook, and other accounts. You can even follow people by clicking a link in the Rapportive tool. It’s very useful!

Keep tabs on people. Another great feature is the ability to add private notes to help jog your memory. For example, let’s say you meet someone at a conference and send them an email the next day. You could then jot down a quick note about how you met them, what business they are in, etc. Only you will have access to the notes you keep and they can be a great way to quickly remember small, but possibly important, details.

The Rapportive tab also shows recent mail to and from the person, so you can quickly click on a recent email if you need to reference something in a previous email.

Are You Worried About How Others See Your Profile?

It makes sense to be concerned that others might “see too much” about you. The good news is that you can control what others see. When you are logged in to your account, click the little “my profile” link at the bottom of the profile section. You will see a popup that looks like this.

You can control what others see on Rapportive.

Take control of how other people see you on Rapportive. You have the opportunity to change almost everything people see about you, including your image, linked social media accounts, and more. Using this feature can help you protect your online image, as well as show people right away that you are a real person, not a spammer. You can highlight your personal website or social media profiles, your business site or social media profiles, and more. Use it well.

What About Privacy?

I understand how something like this can seem unnerving. Many people desire to remain private. This is difficult to do online, and as mentioned previously, Rapportive only displays information they can publicly obtain.You also have the opportunity to edit much of the content that displays for your profile.

It’s also important to mention that Rapportive doesn’t store any of your information, they don’t see your email, and they can’t see your password (they get a secure token from GMail which authenticates your login). Feel free to view Rapportive’s privacy policy.

Give Rapportive a Try

As a small business owner, it’s important that I highlight myself and my business in a professional manner. By controlling what others see, I can create a good impression and show people that I am a real person. As a user, Rapportive helps me see person at the other side of the email in a different light. This can be useful for connecting more easily, keeping notes, or simply determining if it is likely they are a spammer. This is a free app – give it a try on their installation page.

~$~

Related Articles:

1. Looking for a New Job? Networking Tips That Can Help
2. Protect Your Professional Image Online
3. Tame Your Inbox – SaneBox Review

Many government employees are facing the challenges associated with the budget sequester. One of those challenges are furloughs.

Should you vacation on a furlough, or do something else?

A furlough is an effort to save money by cutting back on employment. Employees might be forced to take time off without pay in cycles, for weeks at a time, or they might have their days cut back by between one and three days a week – with a corresponding reduction in pay.

For those affected by a furlough, it can mean the need for adjustments in your finances. The reduction in pay means that your budget is likely to be tighter. On top of that, you might have to cut back on your retirement account contributions, putting your future at risk.

How to Handle the Reduction in Pay

The most difficult issue to deal with when it comes to a furlough is the reduction in pay. You will need to figure out how to avoid a complete breakdown of your finances as a result of the furlough. Here are some steps to take:

1. Prioritize your spending: Figure out what items need to be paid for. Bills, groceries, and other necessities need to be covered. Determine which items are the most important in your budget, and recognize which items are unnecessary. Know how to say no to items you really don’t need.
   
2. Make cuts: Once you have distinguished between the needs and the wants, start cutting the wants. Where possible, cut items from your budget. It’s important to start cutting even before your first furlough so that you can start saving up a little bit to prepare for the time when you won’t be working.
3. Find ways to earn more: In many cases, you will have time to earn a little extra money. Consider freelancing or consulting on days that you aren’t working at your job. Look for a flexible part-time job. You can also sign up with a local temp agency, and work on your available days. While this income might not be enough to completely make up for the furlough, it’s better than nothing.

Try to arrange your finances so that you can keep making the same contributions to your retirement account. If this isn’t possible, try to avoid stopping contributions altogether. Keep making some contributions – as much as you can – for as long as possible.

If you have debt, contact your creditors and find out about your options. Deferment and forbearance might be options, or you might be able to adjust your payment plan, or get a reduction in interest rate that makes your payments more manageable.

What to Do With the Extra Time

Another concern is what to do with the extra time on your hands. If you can arrange your finances so that you don’t need to try to fill every forced day off with work, this could be a good time to improve your own situation. Some things you might be able to do during your furloughed time include:

• Going back to school: If you have been meaning to get a certain degree, or if you want to complete a certification, now might be the time for it. If you can get financial aid, it can even help you pay for the education. If you can develop a marketable skill during your furlough, you might be able to come back on when the furlough is over with higher pay (and partially make up for your reduced retirement account contributions), or even find a better job.
  
• Working on your hobby: For those with really “together” finances, the furlough can provide opportunities to work on your hobby and just enjoy yourself. You can treat furlough as a mini-retirement or a vacation.
• Starting a business: If you’ve always wanted to start a business, the furlough might provide you with the time you need. Get your idea off the ground, and you can create another source of income that can benefit you down the road.

You can use your time to do a few things that you want, and even create a situation in which you actually become better off than you were before the furlough.

Do you have a furlough coming up? What are you going to do during that time? Leave a comment!

Photo Credit: anda (:

~$~

Related Articles:

1. Managing Money With Irregular Income
2. Why You Should Set Spending Priorities
3. How to Make a Zero Based Budget

Mother’s Day is right around the corner, and if you haven’t thought of a gift to give your mother, mother-in-law, or mother of your children, now is a great time to start thinking about what you will give that special lady in your life!

These gift ideas are creative and inexpensive ways young children can show Mom they love her.

Frugal Gift Ideas for Mother’s Day

A hand-made card. Hand-made Mother’s Day cards are a classic – I remember making these when I was a little kid! I’m sure these are something mothers never tire of receiving; a hand-made card shows you took the time to create something special for the woman who helped create you.

Breakfast in bed. Sunday mornings were always a “special” breakfast day in our house when we were growing up. We ate as a family and always had eggs, or pancakes, or French toast, or something similar. On this special day, why not cook Mom’s favorite breakfast and bring it to her in bed. If there is room, the entire family can have a picnic on and around the bed. Just bring plenty of napkins!

A day off. Every mother has one thing in common – she works hard and deserves a break! Have the family pitch in and clean the entire house, cook all the meals, do the laundry, and all the other little tasks mothers often do, but which may seem to go unnoticed. Even better – up the ante and give Mom a week off!

“Hand” made crafts. You’ve seen them – the t-shirts or aprons with the hand prints on them. The set up for this is very inexpensive. Just buy a few dollars worth of paint and a blank t-shirt or apron. The total cost can be well under $10.

Coupon book. This gift works well for kids and husbands. Create a coupon book with “coupons” Mom can redeem for things such as cleaning your room, washing dishes, vacuuming, or even a massage.

Create a story book. My mom often read to me when I was growing up, and I’m sure there are a lot of moms out there who read to their children most nights. Why not write Mom a book, complete with story and illustrations? Then, the children can read it to her, and she will have a nice gift to keep.

Create a scrapbook or memory book. Moms love pictures – that’s why they always have a camera nearby! Take some time to create a scrapbook or photo album with your children’s favorite memories with their mom. She’ll love it! So much in fact, that she will be sure to pull it out to show her child’s first date.

Grow Mom some flowers. Why buy flowers when you can grow them? Little flower pots are very inexpensive and so are paints. Have each child decorate a pot with his or her name, a hand print, or a drawing, then plant seeds in each pot. The children can then help take care of the plant through the year. It’s also a great learning experience. If you can’t grow them, here are some tips on how to save money on flowers for any occasion.

Put on a show. My wife told me she loved to put on song and dance shows, or make up plays. This is a great way to entertain Mom and show her you care. You can even write in a part for her if you want, but since it’s her day, you should probably make her the heroine!

Spend time doing her favorite activities. It’s Mom’s day, so do some things she enjoys. Pick some fun activities you know she loves to do, and spend time as a family enjoying each others company. If the weather is nice you can go for a picnic or to the lake or beach, or if the weather is bad you can stay inside and have movie marathon complete with popcorn and purple Kool-Aid. Yeah, my mom likes the purple kind.

Decorate a picture frame. Have each of the children decorate a picture frame for Mom. Then they can present it to their mom with a picture of them in it. Mom is sure to love it!

A memory box. Have your children write down their favorite memories of a time they had with their mother and place them in a small box. Then, Mom can read through them whenever she likes. Chances are, some of her children’s favorite memories will be some of hers as well.

Bake cookies. Everyone loves homemade cookies! If the children are old enough, they can make a batch from scratch and serve them to Mom when they are still warm and soft.

Write a letter. One of the most beautiful things you can do for your Mom is to let her know how much you love her and how much she means to you. She probably knows it already, but actually saying it or putting it on paper will mean more to her than you think it will.

Be creative. There are hundreds of ways you can show your Mother how much you care about her and appreciate her, and many of them don’t cost anything.

I hope everyone has a safe and wonderful Mother’s Day next week.

photo credit: flaivoloka.

~$~

Related Articles:

1. 10 Unique Gift Ideas for Christmas
2. Save Money on Flowers for Mother’s Day or Any Occasion
3. Great Financial Gift Ideas For Children

For many Americans, it may seem as though living with a car payment is the only way to ensure that you have safe, reliable transportation. But you can save money and pay cash for a car you’ll love — and continue to remain debt-free. Here are some strategies for both finding an inexpensive, reliable car and for saving up the money to pay for it in cash:

Research, Research, Research

One of the reasons why buying a new car – and getting an expensive financing plan – feels so convenient is because there’s not that much research involved. Sure, you may check the Consumer Reports statistics on safety, reliability, fuel economy, and more, but once you’ve zeroed in on the particular car you want, you can just basically stroll onto the lot.

But if you’re going to buy a used car with cash, there’s a great deal more research you need to do. First of all, you’ll need to figure out what is most important to you. For instance, over the past 10 years, excellent fuel economy has become the holy grail of car buyers — meaning cars with excellent mileage are much more expensive, even if they’ve got a few years on them. You may find that you can get a reliable car for much less if you’re willing to compromise on the MPG. So do some research to find out what will be the cheapest car to buy and to own – including maintenance, insurance, and gas in your calculations.

In addition, regularly checking local classifieds, Craigslist, dealer websites, and the like can help you to know average prices for your area. For example, Toni at MoneySavingMom.com was able to discover that white vans would sell for less than any other color, and that Ford vans were generally cheaper than Chevys by regularly researching local sales sites. That kind of information was invaluable in helping her find a good deal on her family’s van.

Ways to Save Money for a Car

Once you know what kind of car you’re looking for, your price range, and when you want to buy the car, you’re ready to put your car savings into high gear. Simply divide your price range by your time frame, which will tell you how much you need to stash away each month. Even if you think there isn’t a single penny to be pinched from your budget, here are six ways to save money (and save quickly) for your new wheels:

1. Have a base amount of savings auto-debited from each paycheck.

You can’t miss what you don’t see. Even if all you can afford from your paycheck is $50 or $100 per month, setting that aside each month into a savings account you don’t touch will be enough to start a nice cushion of payment for your car. You can think of it as a reverse car payment — you pay yourself the equivalent of a car payment each month, until you’re ready to buy your car with cash.

2. Carry cash (and leave your credit card at home).

If you’re regularly sending a lot of your hard-earned money to your credit card company every month, you might want to try carrying cash instead. You’ll save a lot on impulse purchases if you remember that you only have $20 in your wallet.

3. Clean out the house.

Selling your unwanted items at a yard sale or on eBay can not only help you declutter your home, it can get you closer to your new car purchase.

4. Cancel services and memberships.

When’s the last time you went to the gym? How often do you watch the premium cable you’re paying for? You can put your savings into high gear if you cancel your unused memberships and services and put that money toward your car. (Bonus if you use the time you’d spend watching television to go for a walk — kill two birds with one stone).

5. Bank your raises and bonuses.

Rather than let lifestyle inflation get you used to extra cash in your paycheck, send that money directly to your savings.

6. Boost your income.

Finding a side hustle to do in your off hours is a great way to earn extra money toward your goal. You can find anything from dog-walking to house-sitting to lawn-mowing which will help your bottom line.

Saving money for a car you’ll love will take time and effort. That means you’ll take excellent care of your ride, and you’ll be that much prouder of the effort you put into researching and saving for your car.

Are you planning on purchasing a new or used car for your family? How are you going to pay for it? Leave a comment!

Photo Credit: Fadzly @ Shutterhack

~$~

Related Articles:

1. Money Saving Tips – 25 Actionable Ways to Save Money
2. What to Do When You Absolutely Can’t Pay Your Credit Card Minimum Balance
3. How to Save for a Wedding in a Year (or Less)