Archive for the ‘Personal Finances’ Category

Groceries consistently rank among my top three monthly expenses. Many of us who are trying to cut our food bills are dining out less and eating in more, so it’s hard not to notice that the cost of many things has risen while package sizes have shrunk.

Shopping sales and using coupons help, but even if you lack the time to do that, there are still many foods that can be had for a dollar. Granted, some aren’t the healthiest (soda and candy bars), but others (dried legumes) offer superior nutritional value if you have the time to cook from scratch.

I set out to build a list of 50 food items you can still buy for a dollar. My “research” consisted of scanning the online sales circulars from four local supermarkets – Stop & Shop, Big Y, Caraluzzi’s and Shop Rite. (Shop Rite, by the way, had the most items for $1 or less while Big Y had the fewest – only one item.) Read more »

In these harsh economic times, almost everyone’s budgets err on the side of frugality, but one New Hampshire family is taking penny-pinching to a whole new level. Heather and Bourne Spooner want their family of four to live on $1,500 for one year! Yes, an entire year! Now that’s ambition.

The family set a goal to spend only $1,500 this year on all groceries and household and personal care items. They plan to achieve it by stocking up, shopping during sales and paying close attention to coupons. They’ve even sworn off dining out until their anniversary on Dec. 28.

And it seems they’re well on the way to their goal. The family, which includes two young boys, told MyFOXBoston.com that they’ve only spent $125 so far this year. Heather began her mission back in July 2008, feverishly clipping coupons and stocking up so the family would be prepared for their money-saving ‘09 adventure.

The family is documenting their efforts on their blog “Living on $1,500 for One Year.”

Their mission sounds like it requires a lot of discipline and even more time in the kitchen. I’m not so sure most would be up for the challenge — namely myself, and I’m only one person. That’s why this is one story I definitely plan on following. I’m very interested to see if the Spooners can pull it off.

Have you created a new 2009-specific budget for your family to cope in the current economy? Is it as severe as the Spooners’ 2009 fiscal plan? Has this family’s story inspired you to start one now?

When you shop for a used car, it can be like venturing into unknown territory, not knowing the history of the car or whether it’s been in accident.

Now, a new National Motor Vehicle Title Information System (NMVTIS) lets car buyers type in a Vehicle Identification Number (VIN) to quickly check a car’s title, odometer reading and other details about its previous life.

Car sellers have plenty of incentive to rebuild a wreck on the cheap and then sell it to unsuspecting buyers for more than the car’s worth. A quick or shoddy repair job can also endanger the safety of drivers who are unaware they’ve just purchased a totaled or salvaged car that was sold at auction and then rebuilt improperly.

According to an MSNBC story, 37 states are now participating in the NMVTIS database. Three states ⎯ California, New York and Pennsylvania ⎯ contribute to the database but don’t permit residents to access it. “Critics say these states don’t want to lose the millions of dollars they now make from selling this data to private companies like CarFax and AutoCheck,” MSNBC reported.

I’m going to type in my car’s VIN number and see what comes up.

Today’s economy forces people to make concessions at every turn — and weddings are no exception. The countdown is on to “wedding season,” but the landscape of the wedding receptions in 2009 will probably look a lot different than it has in years past.

Over-the-top fairytale weddings are quickly becoming another casualty of a weakened economy. Bubbling brides-to-be all over America have to put their dreams of wedding-day grandeur aside in the face of cold, hard numbers.

CNN.com recently profiled a number of brides from across the country who ditched their dream wedding plans on account of the economy. Whether due to unexpected layoffs, or just reined-in budgeting, all of the couples had to cut back, and in some cases completely cut out, aspects of their weddings they previously thought were a given — like guest lists exceeding 250 people. Some couples chose one big item over another: an expensive photographer instead of a fancy reception hall, or cute cupcakes to replace an overpriced wedding cake.

While the thought of skimping on their “big day” might seem heartbreaking, all of the brides CNN talked to agreed that the main point of the day is to celebrate the marriage — not the wedding. If this is the “back to basics” America everyone’s talking about, I say, “cheers… to the bride and groom.”

Has the recession changed your wedding plans? Are you keeping all of the frills but fewer guests? All of the guests but fewer frills? Or are you sticking to your original big blowout plan?

According to the News Tribune, Harvard Professor Elizabeth Warren thinks mobsters are envious of the power that student loan debt collectors wield. Federal student loan companies have the ability to garnish a borrower’s wages, seize Social Security or disability payments and even tap into your personal bank account (without a court order) if you don’t make payments on your student loan. It seems that loan companies benefit more when students default on their loans.

Private student loans are considered a private debt, and debt collectors in those cases don’t have quite as much power as those pursuing payment on federally funded loans. Private lenders can garnish your wages if you bring home more than $175 a week, but Social Security and other benefits are exempt from private debt collection.

Of course, it’s always better to make your payments, but should you run into tough financial times, try to work out payment arrangements with your student loan lenders to avoid defaulting.

Debt consolidation is one of the best ways to get excessive debt repayments under control. Consolidating all of your debts into a single monthly payment with a lower interest rate makes it easier to pay what you owe. As long as you can stop taking on new debt after consolidating existing debt, a debt consolidation loan can improve your credit score. Here are three big benefits of debt consolidation:

1. One monthly payment. If you’re currently trying to keep track of multiple credit card and loan payments, it can get complicated. When you have to pay several different bills each month, it’s easy to miss a due date or forget one completely. Consolidating each of your debts into a single payment will eliminate this problem.

2. Lower interest rate. When you consolidate multiple debts with various interest rates, you can usually get a lower interest rate than what you’re paying on the accounts separately. The interest rates on your existing debt can fluctuate throughout the term of the loan, while consolidation loans typically feature a fixed interest rate until the balance is paid in full.

3. Reduced stress levels. Anyone who’s ever experienced debt knows it can trigger a range of emotions. From depression and anger to anxiety and insomnia, debt is a monster that can overshadow many aspects of your life. Consolidating your debts and making payments more manageable will ease the strain and improve your mental outlook.

Everyone makes financial mistakes from time to time. The important thing is to learn from them. If you use a consolidation loan to manage your finances, don’t let your credit card use get out of hand or you’ll find yourself in worse shape than you were before you got the debt consolidation.

Just about anyone could tell you what they’d do if they won the lottery, but how many people have a financial plan for disaster? Do you know what you’d do if you lost your job and had to survive without income while you searched for a new job? What if you became disabled and unable to work?

The most obvious way to prepare for disaster is to save enough money to cover your living expenses for at least three to six months. Of course, this is easier said than done when the majority of Americans are living paycheck-to-paycheck, even in good times.

In a New York Times article called “Preparing Your Budget For Disaster,” Wisconsin financial planner Kevin McKinley has an interesting suggestion for financial disaster preparedeness that might seem a bit counter-intuitive. Borrow more money from a home equity line of credit or a credit card while you still can, he says, since the availability of the funds could disappear without notice. Once you’re unable to borrow and you’ve depleted your savings, you’ve run out of options. Borrowing money before disaster strikes means you can pay it back slowly over time and keep cash in savings for emergencies.

Wall Street Journal writer Neil Templin wrote an amusing explanation of what’s behind his shopping impulses. When there’s a lag between the moment of impulse and the opportunity to purchase, those impulses become less urgent. It’s one thing to fantasize about a widescreen TV when you can’t afford to buy it, but once the purchase is within your grasp, reality sets in. Where will you put the thing? Will it dominate the living room like an oversized Christmas tree? Soon enough, the urge to buy melts away.

It reminds me of my own experience with Fig Newtons. A really cool kid at school always ate them at lunch. I decided I must have them. My mother obligingly bought them and packed them in my lunch box. That day in the cafeteria, I proudly ate my Fig Newtons. And promptly threw up.

Just as with widescreen TVs, reality often overrides the fantasy.

Says Templin, “But even when I buy something I like, I often find myself vaguely disappointed. The car that seems so magical in the dealer’s lot is just a car a few weeks after you take it home.”

Separating an object’s utility and function from its “je ne sais quoi,” a fiction that’s fabricated by overeager marketing copywriters, can help consumers quell any buying impulses still lingering into the recession. It’s a useful trick.

How do you manage your shopping impulses?

As thousands more are added to the rolls of the unemployed nearly every day, competition for those few jobs that are available has heated up. In past years, over-eager job candidates might print their resume on fuchsia-colored paper, slip a videotaped message to prospective employers in the mail or, God forbid, “flesh out” their resume with non-existent work experience or educational degrees.

There’s a smarter way to grab the attention of hiring companies and make yourself stand out from the competition. If you’re a decent writer, it’s easy to create your own online blog with regular, if not daily, posts about your chosen area of expertise. Find a subject you’re very familiar with (ideally, one that’s related to your career interests). If, for example, you’re in marketing, you can blog about cutting-edge trends or your own successes and failures working on previous projects. The goal is to position yourself as an expert in your field and as someone who stays abreast of current developments, even when you’re between jobs.

Even if you’re not Ernest Hemingway, you can still maintain an eye-catching blog by spotting compelling news items that relate to your field and then briefly commenting on them, including a link back to the original news story.

The unemployment support site, www.thecanned.com, for example, was created by two former college roommates who reconnected years later after simultaneously losing their jobs. Career blogs can take on virtually any subject. Whatever you decide to write about, try to imagine the reaction it would elicit from a potential employer.

It’s best to start blogging before you’re laid off because then you’ll have a ready supply of at least a few months’ worth of posts. When you start pursuing job leads, include a link to your blog in your cover letter and resume to wow prospective employers.

Along with filing for unemployment benefits and updating your resume, creating a professional blog can be one of the most important things you do following a layoff.

Do you use any special strategies when looking for a job?

Picking a personal finance hero isn’t really that easy.  After all, who would you pick?  Would you pick those responsible for putting the bailout together?  How about someone who sounded the alarm whistles early on about the credit/financial crisis but was ignored?  Perhaps a TV finance personality like Jim Cramer from the “Mad Money” TV show on CNBC?

Better yet, how about that couple that you know who aren’t particularly complicated, but full of common-sense financial wisdom?  They worked and played hard, but they always lived well within their means.  They saved when it wasn’t the most fun they could be having with their money.  They were frugal.  They didn’t buy a BMW or a house with a huge mortgage.  They spent their money wisely and saved smart.  And even today, with the economic downturn, their hard work has paid off.  They remain financially sound.

See, those are the people who should be your personal finance hero.  They not only deserve such credit, but they can help you.  And though I know many of those people, I sit here thinking of someone with those qualities and a bit more influence, someone who not only has pulled herself up from the boot straps but who helps others do the same thing.  For 2008, the person who gets my vote is Suze Orman.  She’s been where the average American is, and through hard work and common sense, she made it.  And she shares her story with just about anyone who will listen. During the last few months, as folks were panic-stricken, Suze appeared on the Oprah show with her no-nonsense style and calmed everyone down.

Though Suze might be my personal finance hero, I urge you to look for your own.  You don’t need to go far.  Look around you.  Look at those people from whom you too can learn.  They have all the characteristics that someone like Suze has.  They work hard, are frugal, live well within their means — and they save.  They check their credit regularly, and they work hard to maintain their good credit standing. Those are the heroes, the everyday folks who make it — even during times like this.