Save Money Now and In Future

Recent tweets on how you can save bunches on money now and in the future:

Cancel expensive premium cable package and opted for the cheap, basic service, and start saving average of $80 a month, more than $950 a year.

Infuse more cash into your budget. Knock $17 off monthly bill by hinting that you want to switch to a less expensive cable TV package.

Save on utilities. EPA estimates average homeowner can save $180 per year with a programmable thermostat.

Save on utilities. EPA won't grant the Energy Star label unless its figures show you'll recoup that extra outlay within five years or less.

Save on utilities. Cumulative effect of all the small leaks in your home, it has the effect of leaving a window open all year long, the EPA.

State and local governments, utility companies offer financial incentives for homeowners to upgrade their appliances to newer, efficient.

Use a reusable furnace A/C filter than you can simply hose off when it gets clogged up with dust and other particles. Saves $$ in long term.

Set your water heater at 120 degrees, and save up to $461 annually says EPA. Also, Turn gas water heater down when on vacation.

Do sweep through house to make sure all your electric devices are turned off before bed time. Coast annually $21 for bulb and $35 for fan.

Use light or white color shingles on your roof and save up to $120 per year in heating cooling cost.

Install a sub-meeter on water used for lawn, car washing etc. Will pay for installation within 3 years and save hundreds every year after.

Infuse more cash into your budget. Use tax withholding calculator, change your tax withholding, file a new W-4 with employer. Keep $242/mo. more on paycheck. Based on average refund.

Eat out 2 less times/mo. and save up to $100/mo. BIG savings, easy benefits.

Increasing auto insurance deductibles from $500 to $1,000 can reduce your premiums by up to 18 per, and save you $648 per year, on average. Based on family with 2 teen drivers according to the database at InsWeb.

Do Something Different

October Edition - Financial Freedom

"A day will never be more than you make of it." Josh Hinds

If your day consists of doing the same things you did yesterday, last month, and last year financially, and you are no farther ahead than you were, then, do something different.

Congratulations to one of our readers. She made a bold move recently and started her own business. She did something different.

Do something different and prepare your own Net Worth Statement. Yes, according CNN/Money, "It's hard to figure out how to get somewhere if you don't know where you are." Regardless of whether your financial net worth is negative or in the positive, it is where you need to start building from that point on. Net worth means that you have calculate all of your expenses (liabilities), and subtract those dollar amounts from your assets (things of value including savings, retirement, houses and car values, etc). The sum is your net worth or owner's equity. Although, unless you need to for insurance purposes, you may not want to include jewels and furs. Forms are easily available if you need them.

The average net worth by age is about $900 for 25 year olds and under; $15,000 for 25 to 34 year olds; $95,250 for 35 to 44 year olds; and $163,334 for 45 to 54 year olds. (source: CNN/Money - pre economic downturn)

The average net worth by income is: Under $25K (x 1000) is $12,500; $25K-$50K is $75,000; and $50K-$75K is $168,450.

Do something different and prepare your own budget. Calculate all of your income from all of your sources, and all of your expenses from food, clothing and shelter, to mortgages, insurances, and car notes, etc. Use available free software to do this. The software will encourage zealous attention to detail. The results will give you suggestions on what percentage of your income you should be devoting to certain categories like insurance, savings and investments, and general living expenses. I ran the free software from Money Magazine's web-site and discovered that I was spending 10% more on insurance than I should, and like most people I was investing about 17% less on savings than they suggest.

Budget calculator link: http://cgi.money.cnn.com/tools/budget101/budget_101.jsp

Creating Extra Money Tip of the Month - Use debt elimination software to calculate how much you should pay on each credit card (bill) each month and systematically eliminate everything from the high interest "bad debt" to the lower interest rate debt in a very short period of time while using the same amount of money you now spend each month on those same bills. What's left? Lots and lots of cash.

Brilliant Methology - Pay-off Smallest Debit 1st.

Brilliant methodology. Paying off the smaller debts 1st makes people FEEL successful. Must consider how people FEEL or it just wont happen.

Oh so true. Most people fear change so much they rarely get started. Having real short term reachable easy goal, can motivate the behavior of so many.

Concentrate your efforts on paying off your smallest debit 1st. Pay just the minimum on ALL your other higher balances. Otherwise you will dilute your efforts and accomplish nothing. Later, and once you've paid off your smallest debit, focus on the next smallest debit by redirecting the amount you were paying on the smallest debit to the next smallest debit adding to the minimum you were paying (called compounding).

"You need some quick wins in order to stay pumped up about getting out of debt! Paying off debt is not always about math. It’s about motivation. Personal finance is 20% head knowledge and 80% behavior. When you start knocking off the easier debts, you will see results and you will stay motivated to dump your debt," says Dave Ramsey.

The principle is to stop everything except minimum payments and focus on one thing at a time. Otherwise, nothing gets accomplished because all your effort is diluted. First accumulate $1,000 cash as an emergency fund. Then begin intensely getting rid of all debt (except the house) using Dave Ramsey's debt snowball plan. List your debts in order with the smallest payoff or balance first. Do not be concerned with interest rates or terms unless two debts have similar payoffs, then list the higher interest rate debt first. Paying the little debts off first gives you quick feedback, and you are more likely to stay with the plan.

Kids 8 to 18 Spend 53 hrs On Media

Kids 8 to 18, spend 53 hrs/wk (Hispanics and African Amrican add 4.5 hrs) on cell phones, computers, video games, TV and texting. And only 25 min reading.

Amount of time kids spend each day, on average:3

Watching TV 2:46

Listening to music 1:27

Reading for fun :44

Watching videos :39

Using a computer for fun :21

Playing video games :20

Online :08

Percent of kids who spend more than an hour a day:

Watching TV 64%

Reading for fun 20%

Listening to CDs or tapes 19%

Listening to the radio 17%

Using a computer for fun 9%

Playing video games 8%

Online 3%

Playing computer games 2%

4 Reasons You Might Want Store Credit Card

4 reasons you should get a department store credit card
Often (and justly) maligned, retail store cards sometimes can help

For many years I warned friends and family against getting store credit cards, because I learned that they lower your credit scores. Now I read there are benefits that I was not aware, but can understand based on recent financial events in our lives. The banks, well, they've abused my trust in them, lowering my credit limit and then increasing my interest rate because I'm too close to the limit. Adversely affecting my credit score and then raising my rates again because of the score they caused. Twice in 6 months. Just burns me up.

Following is helpful information I found on Channel 19. Gentle but solid information.

Store-branded credit cards have never gotten much respect -- often for good reason. The sky-high interest rates and short grace periods that often accompany the cards don't do consumers any favors. And because they're often touted as a quick way to save 10 percent or 15 percent on a purchase, people rack them up quickly, to the detriment of their credit scores, says Scott Crawford, co-founder of DebtGoal.com.* "Because they're a hard inquiry on your credit file, which can cost you about 30 points on your score, taking out these cards can drive down your score pretty significantly," he says.

That said, there are times when a store card may be a boon. If you're a savvy, responsible shopper who pays bills on time and in full, you might be able to reap significant benefits from store cards. Here are four reasons you might want to give a store card a second look.

1. You need to build (or rebuild) your credit. If you're someone with a "thin credit file," or you're trying to start fresh after a bankruptcy, your options are few. A crummy economy likely means that major card issuers will be even more skittish about extending credit to risky borrowers. In some cases, a store card may be one of your only options. "If you're trying to build your credit, the typical route has been to get a store or gas card," says Liz Weston, author of "Easy Money" and "Your Credit Score." "Traditionally, those have been easier to get. Though that's not always the case, it may be worth looking into." Once you've built up a few months' history, though, she recommends branching out into a card from a major issuer.

2. You can save big on a one-time purchase. If your purchase is in the thousands of dollars -- think furniture and remodeling projects and supplies -- that 10 percent discount can make a big difference. "If you've got excellent credit, you're not going to be in the market for a new loan, and you've got a purchase where the savings from the card would be more than $100, go for it," says Crawford.

3. You buy from the store frequently (and will use the coupons and perks). A one-time savings of $10 or $20 usually isn't worth a credit inquiry and the hassle of filling out forms. That said, if the store is one that you go to regularly anyway, the deals and ongoing perks may be valuable enough for you to sign up, says Scott Bilker, founder of DebtSmart.com. "If the store has good prices, a lot of stuff you like, and discounts that you'll use, then having the store card is a good idea," he says. Some stores include deals such as free alterations and gift wrapping that may also be useful.

Before you take the leap, though, Bilker recommends doing some comparison shopping: You may be able to get the same perks just by signing up for a store newsletter or getting rewards from a regular credit card.

4. You can get interest-free financing. In addition to discounts, some stores may offer interest-free financing -- a perk that may be worth it if you're doing it for convenience, not necessity, says Crawford. "Interest rate concessions for six months or a year can be a great deal for big purchases -- as long as it doesn't get away from you," he adds. "The savings from interest-free financing for six months disappears pretty quickly if you pay 28 percent for a year after that."

By Erin Peterson Credit Cards.com

Some additional things to consider

It's too easy to spend money when you have more cards. Kimberly Penney of Kent, Wash., never gets the store card. She says, "I don't want to be tempted to use it later on, so I just don't open it."

Opening a new credit card can ding your credit score rating. If you're not expecting to refinance your house or borrow money in the near future, that may not be big deal. But if opening a new account causes a 10-point drop right before you apply for a loan, it can cost you plenty. Andy Jolls, CEO of Videocreditscore.com, a credit scoring educational site, gives the example of saving $45 on your current purchase -- only to pay about that much more every month on your new home loan because you didn't qualify for the lowest interest rate. In a worst-case scenario, you could pay $15,480 more over the life of your loan just to save $45 dollars at the checkout counter. It's hard to think of a worse deal than that!

It's one more card to keep track of and have open. An open card, especially one opened with another person, can come back to haunt you years later. You should never have more cards open than you can easily remember and keep track of.

"It's one more card to worry about identity theft on," says Jolls. If anyone ever steals or forges your driver's license, for instance, they can go to the store, present ID, and use your account.

You'll get a more junk mail -- possibly even junk e-mail -- once you're a "preferred" customer. That's just more temptation. I know from experience the more ads I look at, the more I'm likely to find something I want. If I don't see it, I don't buy it. By Sally Herigstad CPA

Pay Off Credit Card Balances Each Month For Free Money

Pay off the full balance of credit cards within the grace period and avoid finance interest charges completely. Now that's nearly free $$

Regular use of credit cards will improve your credit score over time. BUT, you should pay them off each month. Others would say, pay more than the minimum, and don't max them out. I say use them to your advantage and build credit scores.

There are credit cards that allow you to deposit money in them, say $500 or so, and that's all you can spend. These types of cards do report to credit bureaus, and you can improve your credit rating in this way.

See: Credit Cards
Build your credit score, there may be no credit checks.