Growing a small crop in a community garden can circumvent rising food prices for those willing to do the work. Image from Wikimedia Commons.

During the past few months, world food prices have been on the rise for a variety of reasons. Oil prices are part of the reason, as increased costs of shipping food means that producers and retailers have to charge more for it. However, there are always some ways to save money.

Variety of factors cause spike in food prices

For the past few months, many news agencies have covered a worldwide rise in food prices, which was said to have had a hand in the revolts in Tunisia and Egypt. There are multiple reasons; energy costs have been rising slowly and transportation costs make goods more expensive, according to Reuters.  Supplies of grain have also been contracting, according to CNN, which makes livestock that depends on grain more expensive as the price goes up. That also means that the price of bread and other grain products will increase as well. Increasing demand for ethanol fuel doesn’t ease that situation either. The cost of food is estimated by the Department of Agriculture to rise by at least 3 percent in 2011. However, none of this means that a person has to resort to borrowing payday loans just to fill their grocery list.

Make bread

Baking bread is a  tradition that is sadly becoming lost, and it is not a hard skill to acquire. Granted, freshly baked bread does not keep as long as the chemically enhanced loaves available at the grocer. However, the cost of flour and yeast is not high. Bread machines make the process easier and provide a means to bake at home in perpetuity, as long as supplies are on hand. Check out any number of recipe sites for recipes and tips for baking.

Community gardening

Community gardening is something that has become popular over the past few decades. Each community garden differs in its operation, but essentially a large plot of land has small lots available for rent or sale, where people can grow whatever they wish. Flowers are common, but vegetables that don’t require a large area or extensive maintenance are a good idea. Take a look at the American Community Gardening Association to see where the nearest one is.

Green thumb around the house

Go to any large hardware store, and chances are there should be plenty of seeds and pots for starting one’s own herb garden. A little potting soil and diligent watering can raise a complete supply of herbs. Startup costs may seem high, but having fresh chives or basil on hand is hard to beat. Hanging planters, which are very affordable, can be used to grow fresh tomatoes or peppers right off the front porch.

Sources

Reuters

CNN

American Community Gardening Association

Much of the $240 billion payroll tax holiday will be spent on lattes, but discipline can turn yours into real money. Image: CC i need coffee/coffee hero/Flickr

The payroll tax holiday gives everyone earning a paycheck a 2 percent raise in 2011. The government enacted the payroll tax holiday as an economic stimulus and hopes you will spend it. But there are better ways to use the payroll tax holiday to stimulate your own economy in the next two years.

Happy payroll tax holiday!

To figure out how to use your payroll tax holiday, calculate how much the tax break will add to your disposable income. Until Jan. 1, you’ve been paying 6.2 percent of your wages to Social Security. For the next two years you will only pay 4.2 percent. Two percent doesn’t seem like much, but it adds up to $120 billion a year the government won’t be spending on weapons, Fannie and Freddie or ethanol subsidies. The Obama administration is counting on you to spend your fair share instead, on everyday essentials like lattes, smartphone apps and cigarettes.

How much is your payroll tax holiday worth?

The payroll tax holiday is designed so that a little extra money trickles in every pay period. The money shows up in such indiscernible amounts that most people won’t notice as it’s spent. But over the course of a year, the nickels and dimes add up to dollars. For example, two percent of $40,000 a year is $800. The best way to corral that bonus is electronically. The simple strategy is to divert 2 percent of your paycheck to an additional savings account set aside for the payroll tax holiday. Then use it to reward yourself for your discipline by paying cash for something you always wanted.

Maximizing your payroll tax holiday

Paying down debt is the absolute best way to use your payroll tax holiday. Your credit cards probably carry 15-to-20 percent interest. Saving money on credit card interest adds more to the value of your 2 percent raise long after the payroll tax holiday is history. If you make an automatic electronic payment, increase the monthly amount by 2 percent of your paycheck. You take home the same amount you did before, and your debt is reduced faster. If you have a 401K, boost your contribution by 2 percent. In two years you’ll have $1,600 extra. If your employer matches, $3,200. In 20 years at 6 percent a year you get $10,593. Now that’s a tax break.

Sources

New York Times

Consumerism Commentary

Before you pop the cork on the New Year, make some financial resolutions to make sure it's a good year. Image: CC geishaboy500/Flickr

Now is the time to get your personal finances in order. A new year is a good occasion for tying up loose ends on your financial checklist. Get off to a good start in 2011 by taking care of tax issues and re-evaluating your financial priorities.

What to put on your year-end financial checklist

Take financial steps in the week between Christmas and New Year’s Day that will make 2011 a better year than 2010. There are a few days left to address some critical tax issues for 2010. Charitable donations are still good for a 2010 tax deduction until Dec. 31. For another 2010 tax deduction, now is also a good time to dump depreciated stock. You can sell it and write off a loss up to $3,000. Consider converting an IRA to a Roth-IRA. You will pay tax on your Roth-IRA conversion, but if you do it by Dec. 31 you can spread the tax out until 2012. This week is also your last chance to get a free credit report in 2010 to make sure it’s accurate.

Financial resolutions for the new year

Find new ways to be thrifty. Start with credit card debt. Getting rid of credit card debt should be an even higher priority than saving money. Why? because the return you get on savings doesn’t come close to the high interest rates you’re paying on credit card debt. Pay down the expensive credit card debt first, then start saving. You’ll be able to save more. To help pay down credit card debt faster, figure out how much a habit costs and give it up. Make your own coffee or ride your bike to work. Take the money you would spend on lattes and gas and increase your monthly credit card payments.

Work together on financial goals

A lot of personal finance advisers recommend writing down your financial goals for the coming year. However, most people who do that soon forget them. In addition to writing down your financial goals, tell a member of your family or a friend you trust what your priorities will be. Ask them to hold you accountable to your promises and offer to do the same for them. Together you can both be more successful than you would going it alone.

Sources

Sacramento Bee

Wall Street Journal

Creating a holiday money-saving shopping list is easy. (Photo: Iain Farrell/Flickr/CC BY-ND)

‘Tis the season to shop. Everyone can agree that the holidays are definitely the best time to go out and save a bunch of money on items you’ve always wanted. However, it is also a time of hardship, as most people are either unemployed or wait until the last minute to put together a holiday money game plan. Nevertheless, there are many things you can do to save this season; all you really need is to stay focused, particularly on ways to save money.

Create a holiday money budget sheet

First things first, figure out how much holiday money you have by analyzing how much you can afford to spend. This means you will need to figure in your monthly expenses: rent, food, gas, utilities, etc. Once you come up with a reasonable dollar amount, make sure to stick to it. You may also want to budget in at least $50 over that limit for unexpected expenses.

Make a list and stick to it

Write down all the names of the people you plan to buy gifts for. Then, write out the things you plan on getting for each person on that list, and don’t go overboard or choose items you feel will never be used. What’s the point of spending money on something that will only collect dust?

Remember, you can skip buying individual gifts and get one item for an entire family or group.

Bargain shop with your holiday money

Once you have your list in place and know exactly what you want to buy, it’s time to go hunting. Go online and look for holiday saving deals; there are many holiday money saving opportunities available right at your fingertips. Comparison shopping is the most important thing you can do. You don’t want to settle on the first sweet offer only to beat yourself up later because you could have saved more money somewhere else. So take your time to shop, but start early in the season. The holiday money-saving opportunities won’t last long, so get your list started and begin budgeting now.

(Photo: MissMessie/Flickr/CC BY-SA)

Coupons are everywhere now. Almost all retail businesses use coupons to entice new customers. You can save a lot of money on almost anything and prevent the need for a payday loan just by using coupons. Even if you feel you don’t really need to save money, you can use coupons to start a fund for your favorite charity. Everything you save from coupons will be much appreciated by food banks, Toys for Tots foundations and many other organizations in need of donations.

Saving money with coupons

Coupons are easy to find. Type “coupons” into your web browser and click search. Your local newspaper’s website should have them, as well. There are multiple websites now that are offering thousands of coupons ready for you to take advantage of. They can be very substantial, too, such as the 50 percent off fabric store coupon at JoAnn Fabrics and free shipping coupons at Cabela’s. Many of them have Internet codes that let you get a discount right off your online order. Next time you go shopping, take a minute to look up coupons for the store you’re buying from or perhaps on a particular item you’re looking for. You never know what you might find.

Double your coupon value

The local papers also put out coupons for everyone. Sometimes, you can even find “double coupon” savings. This is when you really want to take advantage of those small coupons, as you could double your savings easily. There are folks who buy all their household items with coupons. A program once documented a woman buying $125 worth of groceries for only 25 cents! Who needs a payday loan or cash advance loan at this rate?  To think you could save yourself that much or benefit your favorite charity that easily.

Begin slowly by simply looking for coupons. Start collecting them and pay heed to discounts offered online. Then, when you do go shopping, you will already have your own collection to use.

These are the repossessed homes that banks no longer want to sit on. Banks are more than willing to work with you in any way possible to sell off the home. It’s smart business, if you ask me, and it is all to your advantage if you don’t have a home of your own.

Banks, mortgage lenders and Realtors

The best part about it is that it doesn’t cost anything to look into this amazing opportunity. Why not shop around? With interest rates as low as 4.25 percent, you just might score an amazing deal. It can be fun, too, rather than an emotional, upsetting adventure. There are plenty of horror stories out there about banks not performing well and Realtors who are only hungry for their commissions. However, all banks, mortgage lenders and Realtors are not created equal. You won’t find the good ones if you believe they are all bad.

Finding the right people

To find the right personal loan mortgage lender, ask around and don’t believe everything negative someone tells you. My friend (the Realtor) found a guy who can almost always get a loan done in a very short period of time. Now, is that because he is cheating or dishonest? Not at all. He just knows his business and only gets paid if he processes an approved loan. On the other hand, those working at banks may be paid on salary and won’t really care how long it takes to get you approved. Ask, and keep asking until you find that one lender that’s fast, efficient and professional.

It is to your advantage

It might take you a little while to find the right people; stay calm and be patient. What happens, typically, is we get excited about buying a house and jump on the first available opportunity, then get dragged through the mud, only to swear we won’t do it again. Just take the time to find the right lender. Make it an adventure and remember, you can always apply for a payday loan or a cash advance loan to help you along the process.

Learn to economize like the Economides, "America's Cheapest Family." (Photo Credit: CC BY-SA/Tiffany Muehli/Self-Reliant Yuppies)

The Economides family of Scottsdale, Ariz., understands what it takes to make it during a recession. While most people struggle to make ends meet and scratch for emergency money, “America’s Cheapest Family” (the Economides’ trademarked title) lives well by the simple principles of making a budget and frugal living. According to MSNBC.com, the Economides are the model of what a modern American recession family should be.

‘America’s Cheapest Family’ avoids credit whenever possible

Credit cards, auto loans and squeezing as much equity as possible out of a home are not on the agenda for America’s Cheapest Family. Despite having an expensive home in the golf resort community of Scottsdale, the Economides are able to live on $44,000 per year. And theirs is a family of seven that eats healthy food and wears designer clothing. Their life may seem impossible, but the Economides tell anyone who will listen that bargain hunting and avoiding impulse buying are their key economic strategies. Their current book, “Cut Your Grocery Bill in Half – With America’s Cheapest Family,” is promoted as a game-changer for people who want to embrace frugal living without sacrificing quality.

Having a plan

Planning spending is vital for any family, and that includes planning meals. The Economides economize by planning meals well ahead of time. Forethought saves them from having to make the kind of spontaneous food choices that cost many people more than they should be spending. And the proof is in the numbers for America’s Cheapest Family. Where other families of similar size might spend as much as $2,000 per week on groceries, the Economides spend $350. It can be done. Reasonable portion sizes play a significant part.

Fashionable, but not trendy

The Economides don’t wear ratty, hand-me-down clothing; they wear fashionable brand names. However, as they recently told Matt Lauer on “Today,” they avoid the hook of pricey new trends. Designer jeans may go for $200 in a mall boutique, but if a quality pair of jeans – even one with a designer name – can be had for $10 in a thrift store, it makes sense to buy for less. Saving money carries the day. That’s the philosophy that put the “economy” in Economides.

Sources:

MSNBC.com

Shop like an Economides

Simple, easy changes to everyday personal finance habits can get you started on the road to debt proof living. Think Stock photo.

The best way to deal with debt problems is to avoid getting into debt. Too many people end up owing tens of thousands of dollars on credit cards, student loans or car loans. If you haven’t yet joined the crowd, there’s still time to adjust your personal financial behavior for debt proof living. When it comes to personal finance, some key actions can produce the best results. Identify and focus on those things. Avoiding debt problems could be as simple as becoming more financially literate about credit card debt, saving money and buying wholesale.

How to start debt proof living

One of the most basic tenets of financial literacy will help you the most: understanding credit card debt. Practical Money Skills talks about the “power of 50.” If you have a credit card with a $3,000 balance at 18 percent APR and pay only the 2 percent minimum monthly payment of $60 per month, it will take you 8 years to pay off your card. What’s worse, you will pay $5,780, not the $3,000 you figured you were spending when. But if you can pay an additional $50 per month for a total payment of $110 you will pay it faster and leave less money for the credit card company to charge interest on. The result: the debt is gone in 3 years and more than $1,800 in interest payments has been saved.

Saving money: start small and watch it add up

Saving money is easier than you think. Saving money for an emergency fund avoids debt if you need something like car repairs. Saving money to buy something instead of using a credit card means you will enjoy that something more. Succeed by starting small, recommends ehow.com. Every time you get a paycheck, put $20 into your savings account. You’ll be surprised at how quickly it adds up. Simple things like refilling your water bottle or brewing your own coffee can make a big difference. Add up how much you spend on bottles of water and coffee in a week. It’s amazing how much thicker your wallet can be.

Buy wholesale: cut out the middle man

By developing a wholesale mentality, you can take out the middle man before he takes his cut. Tips on buying wholesale to save money can be found at essortment.com. It can be as easy as calling local wholesalers and asking if they allow the general public to shop. Sample sales are a great way to buy wholesale. If you have friends who are interior designers, contractors or beauticians who can buy wholesale, offer to buy their lunch if you can go with them next time they shop. And always shop around. Sometimes a torn box is the only reason an item is marked down. Prices lower than wholesale can always be found if you do your detective work.

Saving money on food can keep you out of debt, physically and financially. (Photo: Thinkstock)

It easy to become overwhelmed when it comes to saving money, but it can be very simple. Many people think that saving money — on food, household supplies or even retirement — is a monumental task that requires a lot of time, money and sacrifice. But it doesn’t have to be that way, especially for those who start off small and slow with a few minor changes at home.

Saving money on food

First off, remember to keep things simple — focus on relatively easy ways to save, like saving money on food purchases. Though the cost of food is rising, you can avoid the need for payday loans by learning a few simple tricks on how to really save money on food. Every little thing adds up, and you will notice a drastic change in your spending lifestyle, as well as your health, if you work on developing good eating and spending habits.

Buy store brands

One easy, painless way to cut the grocery bill is to buy store brand food. As budgets get tighter and food prices run high, more and more consumers are turning to store brands — including higher income families. There are many store brand offerings that are just as good as or better than name brand products. Many supermarket chains are offering more store brand products of better quality, and sticking close to store brand purchases can cut the bill down by 50 percent or more.

Buying in Bulk

Another great way to save money on food and prevent the need for payday loans is to buy in bulk. Pay attention to what items cost the most and consider whether buying in bulk can save you more money. Of course, you may want to avoid buying highly perishable items in bulk, like fresh fruits and vegetables, but things like rice, pasta, beans and potatoes can be stored for awhile. Be careful, though, because buying in bulk can also work against you if you overstock and throw things away. Spoiled food is nothing but money down the drain.

Avoid impulse buying

Before you head out to the supermarket, make it a habit to write out a list first. Focus that list on necessary things you need each month and try not to confuse your wants with your needs. Impulse buying can be deadly to your budget, so plan ahead and stay within your boundaries. If there’s something you want for no reason other than to boost your morale, write up a separate list for it. As you watch your money grow by saving money, go back to that list and budget for one item at a time. Always reward yourself for your efforts that pay off, but never forget that some of the greatest rewards in life are free.

Tip: Plan a small shopping trip during the busiest time of the day. With your list at hand, you will be in-and-out in no time without having the urge to meander around and spark temptation. Get in, get it and get out.

Cook your own food at home

This can sometimes be tricky, particularly if you work a busy schedule. But keep in mind that you can save some serious bucks just by making meals at home. Furthermore, eating processed food and eating out can have a negative effect on your weight and overall health, as well as your budget. If you have a busy lifestyle, planning ahead will help a great deal. And that’s where the magic of the crock pot comes in. Put all the ingredients in the slow cooker the night before, and on your way out the door the next morning, it will take almost no time to pull it out of the fridge and have it cook all day while you’re away. It’s as quick and easy as getting online payday loans. You can come home after a long, busy day to a delicious home-cooked dinner everyone will enjoy.

Saving money while spending it

Many consumers believe that saving money heavily depends on how much an individual makes. However, how much you earn is only one part of the equation. Making more money doesn’t necessarily mean you are free from financial troubles. In fact, without good money management in place, it will feel no different than earning a minimum-waged income.

So focus on your monthly bills and realistically evaluate the things that are important and things that are not. Just as you make time for eating, sleeping or leisure activities, you must also dedicate some time to your personal finance each and every month. This way, you know exactly where your hard-earned money is going and make a few changes if necessary.

Having self-control

Temptation comes in many forms, and it is often so potent it seems almost impossible to resist. “Spend now or save tomorrow” is a common issue many are faced with each day. Many confuse their needs with their wants and fail to make realistic choices on what would benefit them the most. They clutter their closets with absolutely unnecessary things and even fill their fridge with food they are not really fond of. Not having self-control can lead to impulse buying, which can in turn lead to overspending and eventually, insurmountable debt.

From kids and adults to small business and corporate owners, learning the skills and strategies to save and invest money can improve the quality of life. And the only way to do that is to have discipline and self-control.

Save for emergencies

Simply forgoing saving money can spell future financial catastrophe. The average person knows that having a financial back-up plan is crucial, particularly in times of immediate monetary needs. Unexpected things happen at the most unexpected times, and when the unexpected happens without a moment’s notice, you had better hope you have some extra cash stored away somewhere. Of course, you can get payday loans in times of absolute urgency, but the fact remains that there is nothing more shielding than to be financially prepared.

Saving money makes dreams come true

There are many reasons why you should start saving money, if you have not yet already. If you are still thinking of the beautiful dream house with a white-picket fence, that dream house will remain a dream for the rest of your life if you do not take immediate action and start saving. What about the vacation trip to Cancun you promised the family? Think you’ll ever get there without saving? What about retirement? Time is ticking and the longer you wait, the longer it will take you to reach financial stability. So put your money to work — start saving now!

Personal financial management will allow you to avoid mistakes that end up costing you a lot of money. Flickr photo.

A lot of people make financial mistakes by spending money without thinking. Living for today and forgetting about tomorrow can get you in trouble. Of course, nobody is perfect and it’s no fun being a tightwad. But personal financial management will help you avoid big mistakes that hold you back from where you really want to be.

Create a budget to avoid personal financial mistakes

Having no budget is the biggest mistake. Spending without knowing where your money is going will leave you broke. But a budget just isn’t a plan for how you would like to spend your money. Bankrate.com reports that to create a budget you have to start tracking your expenses first. Tracking your spending for a month takes discipline, but once you know where your money is going, you can start making better decisions about where to allocate your funds. But don’t be too conservative. A budget that cuts all the fun out of your life is doomed to fail.

A budget helps you start saving money

Creating a budget helps you start saving. Even if your budget looks like it has nothing left for saving you could be wrong. Ehow.com recommends starting small. You’ll be surprised by how quickly even $20 a paycheck adds up. Keep in mind nickles and dimes add up to dollars. Make your own coffee, pack a lunch and fill a water bottle for work. If you take a small side job, like coaching, tutoring or tending bar, use the cash for your spending money and put away the savings from your regular paycheck.

Avoiding late payments

Making late payments on bills and loans is a tremendous waste of money. About.com offers some good tips about avoiding late payments. The easiest way to avoid late payments is to set up automatic payment with your bank account. But if you’re not confident in your cash flow, there are more traditional ways — like not stashing unopened bills in a drawer. Set up your own due date a week before the actual payment is due, and write it on the calendar. Set up a free e-mail or cell phone reminder from creditors that offer them. Many companies will also let you rearrange the due dates better suited to your cash flow.

Use cash advances wisely

Don’t take out debt for living expenses. A payday loan or online cash advance is a valuable service for emergencies like medical bills, car repairs and traffic tickets. But to finance lattes from Starbucks, the dress on sale you can’t live without or beers with the fellas after work, using personal loans and installment loans is a bad idea. When it’s a good idea to get a payday loan, only borrow exactly what you need to resolve the emergency — and by all means make sure you pay it back on time.

Coupons can be great -- Groupon combines coupons with group discounts. Image: Flickr/barganbri

Combine the best parts of a social network and couponing, and you’ve got Groupon. Part social network, part deal-of-the-day website, Groupon is a way to save some money. Groupon currently serves 40 U.S. cities, with a sister site in Europe. Groupon isn’t the only way to save money with a group, though.

How Groupon works

A “groupon” deal is, in essence, a bulk discount. If a certain number of people sign up for the deal of the day, then everyone gets the discount. If not enough people sign up, then nobody gets the discount. Retailers can treat these like group discounts, and there isn’t much risk. Groupon works because everyone agrees to buy whatever product or service is being offered for that day.

Where you can find a Groupon

There are 40 U.S. “markets” that currently have working Groupon deals. In Europe, MyCityDeal is the “sister” deal to Groupon that works the exact same. Over the next few years, MyCityDeal is going to be entirely merged with Groupon.

Not in a Groupon city?

Groupon is a great service that can help you find a lot of great deals. If you are not lucky enough to be in one of the 40 major citites where Groupon operates, though, you can still get good deals. There are websites similar to Groupon that operate in other cities. If you do not live in a major urban center, deals from Groupon or other websites don’t prove very useful. Try typing “group coupon” with your city in a search engine. Or check with your friends; they may already be set up.

Create your own Groupon

If you want to create your own Groupon situation, then it can be done. Groupon operates on a simple principle — group discounts. If you have something you’d love to get a group discount on, then call the vendor. Find out how many people they’d need to offer a group discount, then go to work. Use your social networks and friends to find out who else might be interested. Once you’ve hit the threshold, buy away!

A simple way to save

Many operators have advertised 529-college savings plans as a “simple way” to save. The reality is that nothing about the plan is simple. In fact, parents need to educate themselves with regard to what their state’s tax laws are regarding the accounts. Then, within the accounts there are outrageous options to pick from. Do parents want a conservative option? An aggressive option? A combination of the two? The answer to that depends on how much time they have to save. Savingforcollege.com noted in a recent post that there are more than 3,000 possible investment options with 529 accounts.

The other thing to remember with 529 accounts is that there is no singular way to report results. Because of this, parents who want to comparison shop before they choose a plan need to be ready for some heavy-duty research. There are some websites that offer insight like Morningstar.com or Savingforcollege.com, but parents will still have to understand the calculations to truly compare different savings options. Of course there are financial advisers that will do the work, but they come along with a hefty commission, and the expense can eat away at the quick cash parents were hoping to put into education savings.

But the tax breaks are worth it

Another advertised special of the 529-college savings plan is that the tax breaks are abundant. In reality there are a lot of advantages tax-wise, but they benefit only if the account has gains. For people who opened their accounts right before the recession, there may be few gains to speak of. The past few years were not good ones for anyone looking to invest. Many people holding just-opened 529-savings plans have losses. With a top capital-gains tax rate of 15 percent, parents need to make outstanding gains for any tax savings to be realized.

529-college Savings Plans are great for everyone

Just like all investments, the 529-plan is not for everyone. The main virtue of the plan comes to fruition for parents who have a lot of time to work on them. Parents with only five years to save may find other investment options offer a quicker return and are more aggressive savings vehicles. On the other hand, parents who start a college savings account when children are born can benefit from 529-plans. The plan has a long enough time span to regulate out any downturn in the economy and overcome the ups and downs of stocks and bonds.

Deciding on the 529-college savings plan

The 529-plan is a great option if parents meet certain qualifications. Time and luck can play a big part in how much a parent is able to save over the years. Though the savings plan has its benefits, it isn’t always the sure-fire way for quick cash. Parents should consider their personal situation and then make the best decision for saving money for their children’s college education.

Need quick cash? Apply HERE!

You can solve your debt issues

There are many ways to permanently solve your debt issues. Unfortunately, none are easy, and all require personal and absolute commitment to resolution and even more importantly, personal accountability and acceptance that you are indeed responsible or, at the very least, partly responsible for your current situation. No matter how you find yourself here, there is hope and help available to get you out of financial trouble. Here are some easy changes you can make right now to get yourself out of debt.

Make your monthly budget

First, establish a realistic monthly budget. Take a hard look at where your money goes and evaluate the difference between a want and a need, cutting out discretionary spending such as dinning out, movies, cell phones, and yes, perhaps even cable television. Be creative in finding other ways to entertain yourself and your family.

Save it for the emergencies

Once you have a budget established and have trimmed out all the excess, learn to use cash when you make your purchases. This will develop a good, long-term habit and keep you from piling on more debt. Again, if you don’t have it, you shouldn’t be spending it. If you find that you must keep one credit card for emergencies, do not carry it in your wallet. Save it for emergencies only, and again, even emergencies can be handled for a lot less money when you get creative about your requirements.

If your refrigerator quits, there is nothing that says you must purchase a new one with a credit card. Check your daily newspaper for garage sales, or other listings specifically selling used appliances. The Salvation Army and other secondhand or consignment stores are great places to look for used, working appliances.

Consider your location needs

Also, evaluate your current living situation. Your housing should never be more than 33 percent of your household income. If you rent, consider a less expensive apartment. Consider your location, too. If you live in a highly desirable complex, you can bet you are paying a premium to live there. If you own your own home and you are paying more than 33 percent, then consider shopping around for lower insurance, refinancing your mortgage, and shopping around for more economical utility plans.

This is just the beginning, and there are many more ways to begin your journey down the path toward financial freedom and living debt free.

Investing in your future

More than ever though, people learned a valuable lesson about good savings goals and safeguarding their financial futures. People who put off their investment plans due to current bills realized that they needed to change their habits. If you are one of the millions of people who found their savings insufficient to last throughout the recession, then you need to start your investment plan. Experts say that with as little as $100 any consumer can start a new financial life.

The reasons people fail at investing

Though investing is crucial to building wealth as quickly as possible, there are some culprits that thwart even the most vigilant investor’s plan. First of all, market timing is one of the hardest things to overcome. Experts will tell you that there is a right time to invest, but can they really predict the future? They can try, but studies have shown that even the best investor who has watched the market vigilantly for years is only 70% accurate with predictions. The reason is because the market tends to make its biggest fluctuations due to unexpected events.

Second, there is the age old advice to “buy high and sell low.” The problem with this advice is that it inevitably sets investors on an egg hunt for the hottest stocks or mutual funds. Seasoned investors may be able to weather the storm and come out on top, but novice investors inevitably get tripped up with the choices. In addition, the stress of searching out that one big stock can be too much for new investors to manage and cause them to throw in the towel on trading too early.

Finally, the biggest problem with investing is a failure to diversity. The key to maximizing returns is to diversify and without a good investment plan that takes into account all the types of products available, one blow and your money could take a huge it. That hit may be so large the account never truly recovers from it and you are left with drastically smaller account totals than hoped for. The best formula for building a portfolio is to take 25% of each of the following:

• US Stocks, or those on the S&P 500 Index
• Foreign stocks, or those on the MSCI EAFE
• Real estate, or the National Association of Real Estate Investment Trusts (NAREIT) Equity Index
• Gold, oil and other commodities, or those represented by S&P Goldman Sachs Commodity Index

Investing with $100

Money now that the recession is over comes in much smaller amounts, but that isn’t necessarily bad news. Starting with $100 from a tax refund is enough to get any new investor on the road to saving. The easiest thing to do with the additional money is to open up an IRA with any big broker and then commit to investing an additional $50 to $100 a month into the account. The biggest caution when it comes to starting with a small amount of money is to find an account that offers transactions costs that are as minimal as possible. ShareBuilder.com and Zecco.com are two online brokerages that keep trades down to $4 and $4.50, respectively. To minimize trading costs, all consumers should rotate their initial purchases among the following: Rydex S&P Equal Weight, Vanguard FTSE, Vanguard Total Bond Market, Vanguard REIT Index and PowerShares Deutsche Bank Commodity. For those who are starting with just $100, it is more beneficial to trade four times a year at $300, rather than monthly.

Being financially ready

If you are looking to invest but only have a small starting amount, rest assured that it will still grow steadily. Of course everyone should watch their money now more carefully than ever, but a good investing plan is a tool that will solidify your financial future. It isn’t hard and primarily requires determination and focus but in today’s volatile market, it is a necessity to be financially prepared for anything.

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Consumers are Encouraged to Continue Saving

In the past, economists encouraged consumers to maintain cash reserves of two to three months of monthly expenses. Then the economic downturn happened and people who had the recommended three-month’s worth of savings went through it quickly. Millions of people were laid off and realized just how small an amount that really was to fall back on.

Now that the recession is over, more and more groups are cropping up and encouraging Americans to once again start saving. In case of disaster, or continued economic stressors, people need to have the funds to maintain their bills. One of the biggest problems with this past recession was that in addition to economic hardships, jobs were eliminated in mass numbers. Even the most qualified consumers were unable to find jobs immediately and spent months, even years, searching for employment.

“America Saves Week”

The “America Saves Week” is one event that is proving how important it is for people to save their cash. Fortunately, a record number of people are listening. A recent Gallup poll showed that 62% of Americans say they enjoy saving now more than they enjoy spending. In 2006, that number was only 50%. Americans also realize that their newfound saving plans are quickly becoming the “new normal.” Families that cut back during the recession are continuing their frugality and hoping to increase savings and pay down debt.

Debt post recession

Americans realize that debt is bad. Though for many years debt has been thought of as a convenient tool, borrowers are now realizing that it comes with a price. Currently, it isn’t uncommon for credit card companies to charge hefty fees, along with double-digit interest rates for the cost of extending credit. And if a consumer’s credit score is low, expect both to increase considerably. Because of the changing face of credit, finding money now is crucial to keeping up with bills. Consumers know that they need to shore up their nest eggs if they are to pay for bills and forgo all the issues credit brings.

Changes in Managing Finances

The way Americans are handing debt is also changing. They are trying to pay down debt, and they are also trying to manage finances wisely. For example, the Gallup poll also showed that more and more people are trying to round up their mortgage payments in an effort to pay off the loan sooner. For example, on a $200,000 loan, at 6% interest for 30 years, the payment is about $1,240. Rounding up to a $1,300 payment monthly shaves about $24,000 off the total loan. Americans are jumping on the “rounding up” bandwagon and using it to their advantage.

Focusing on the financial future

In the end, saving is a big responsibility for every consumer to take on. With people stressed financially, it can be difficult to initiate a new budget. For consumers who are determined to find money now though, it can pay off in the future. Paying down debt and then managing money wisely can save long-term funds for any wise American.

Sometimes people think of saving money as a monumental task involving lots of personal sacrifice. This does not have to be the case, however, for those willing to make minor changes, prevent the need for more payday loans, and begin saving money right away. The following are a few very simple tips that everyone can use to grow their savings.

Stop Using Credit Cards

By their very nature, credit cards increase debt. They also are great ways of wasting money on things like interest rates, finance charges and other fees. When these additional charges are avoided, more money is made available for actual saving. Those who make it a hard-fast rule to only purchase items that they can afford to pay for in cash find themselves closer to a debt-free reality and a larger savings account.

Only Spend Paper Money

Each time coins are received as change for purchases, do not spend this money later in the day. Instead, when other purchases are made throughout the day, pay for each one with paper currency and save all change received to be deposited in a piggy bank or a coin jar at the end of the day. People have reported amazing success in saving money in this way and some have even been able to bypass the need for car loans by purchasing vehicles with spare change that they have saved for several years.

Save a Few Dollars Every Day

By developing a habit of putting a few dollars in a jar each and every day, a person can save a lot of money. For example, if a person can develop the discipline of saving just five dollars every day, in a year’s time they can save $1,825. Some people may only choose to save a dollar each day and others may choose to save more, but this is a relatively painless way of saving that everyone can afford to do.

Stop Spending Money on Vices

Most have mentally calculated the money that they could save if they stopped buying a daily latte, a daily pack of cigarettes or lottery tickets every payday. However, those who are really motivated to save money not only put a halt to these vices, but they go an extra mile in actually placing the money that they would have spent on them in a jar or piggy bank and deposit that money into a separate savings account at regular intervals.

Clip Coupons

Coupons are offered online, they are delivered free to most homes, and major manufacturers make them available in the Sunday paper each week. Entire websites are devoted to finding coupons for items used every day and learning how to maximize their value. Some retailers will double the value of a coupon or even accept competitor coupons on certain items. Most people who try using coupons give up after forgetting to use them before they expire. However, this can be avoided by planning specific shopping days, writing out a list of items to be purchased and making a note next to those that a coupon can be applied to.

Anyone Can Save Money

Saving money doesn’t have to be a major inconvenience. By simply disciplining one’s self to set small amounts aside on a regular basis, most are surprised at how quickly these amounts turn into substantial savings. With these tips, anyone can save money and those who are serious about their financial future actually will.

In a struggling economy, families find it especially hard to find satisfying, yet inexpensive weekend activities. This doesn’t mean that a good time cannot be had on a budget; it simply means that adults have to find creative ways of planning family activities that will not break the bank or do not require elaborate credit card spending. The following suggestions are affordable and can be enjoyed by small and large families alike:

Rent Movies from the Library

Public libraries offer DVDs at much lower prices than most rental stores do, and some even loan them out for free. Titles are generally the same that would be found in a retail store, and movies are usually loaned for at least a week. One of the best inexpensive weekend activities that families can enjoy together is a movie marathon, and public libraries all across America make this an easy, affordable way to enjoy a little family time.

Community Events

Every community hosts public events that are family friendly and offered at little or no cost. This means that the entire family can participate in local activities together while saving money at the same time. Events can range from free concerts to cultural activities and can usually be found in a local newspaper or by calling a local Chamber of Commerce.

Join a Community Sports Team

Sports are a great way for children and their parents to learn the value of teamwork and discipline. Team sports also help families maintain good health and adequate physical exercise. Most are offered at very reasonable rates and give family members an activity each can enjoy together as either a spectator or as a player.

Volunteer Activities

Inexpensive family activities don’t always have to be recreational in order to be enjoyable. Volunteer activities are rewarding in a variety of different ways. Not only do families learn to come together to help others and build a sense of community, but most also meet interesting people who enrich their lives in the process. Volunteer activities are usually free or may require a very small, but affordable monetary donation.

Have a Garage Sale

Everyone has junk that they used to treasure, but now have little or no interest in. Someone else may be able to get some use out of these items and selling them at a yard sale is a great way of making extra money to pay off credit card debt or for spending on a planned family activity. Children and parents can easily participate by donating their items and spending a day working together to create an income stream that the entire family can benefit from.

Host a Board Game Night

This can be done at home, at a neighborhood park or even at a local coffee shop, but inviting a few other families to join in on a board game marathon is a great, fun and wildly inexpensive way to enjoy a weekend. Most people have board games that are collecting dust in their homes that can be used to host a board game tournament or just a friendly family get-together.

Elaborate family outings are fun, but inexpensive weekend activities are often discovered to be the most enjoyable since they are not accompanied by stressful spending. They also create an opportunity for families to enjoy themselves even when living on a budget. Anyone who is interested in plain, simple fun is encouraged to try a few of these while teaching children that it is possible to have a good time without going into debt in the process.

Dating on a budget takes creativity, but it can be meaningful and fun. Just because you need a loan till payday or a little cash advance, doesn’t mean that your love life has to suffer. You can still enjoy romantic, unforgettable dates when you are tight on cash. The following are but a few examples of inexpensive, but memorable activities you and your beloved can share together.

Create a mutual bucket list

Find a relaxing environment, such as a picnic at the park or an evening in front of the fireplace and, with pen and paper in hand, create a bucket list together. A bucket list is a list of things that you want to do before your time on earth is up or, to put it more simplistically, before you kick the bucket. While most people have individual ideas in mind, it can be fun for couples to create a list of things that they want to do together before they part. This can be anything from helping each other get out of debt to taking an exotic vacation together. Let your imagination run wild and have fun with it.

A well-planned list that is then lived out is likely to leave a legacy that other couples will want to emulate. At the very least, the list will allow you to create plans of how you can best enjoy your lives together. When creating your plan, remember to select a scenic locale that you will enjoy looking back on when you recall the place where your dreams were created.

Adopt a pet together

If you’re already married or planning to be together for the rest of your lives, why not celebrate your union by adopting an orphaned pet? This is a major decision and not one to be done on a whim, so make sure that you’re ready for the shared responsibility of a pet. Also, be sure that you are financially able to afford a pet’s basic care without going into debt. If you determine that you can do so, then pick a day to browse a few animal shelters in order to find one that both of you can love for a lifetime.

An afternoon of meeting animals that have been lost, abused, abandoned or neglected, doesn’t cost a thing beyond a little time and compassion, and actually makes dating on a budget meaningful. The specific pet adoption costs are far less than buying a pet from a store or a breeder and the memory that you will create in exploring this activity together will be one that you can treasure for a lifetime.

Make a list of mutual goals and hide it in a secret place

Do you have a clear set of goals for your relationship? These goals should be things that you each want to do to help your relationship thrive and to make it better. For some people, this can mean saving money to buy a house or even something as simple as promising to never go to bed angry with each other.

Whatever your goals may be, sit down and write them down together, make a copy for each of you and then select a place where you can safely bury or hide your original copy. When you’re done dating on a budget, each year on the same date that you created the list, take it out again and see how many things you’ve managed to accomplish. Doing so creates clear guidelines on how you hope to grow your relationship and helps you revisit, renew and add to those goals every year.

Make your own memories

When you’re short on cash and dating on a budget, expensive dinners and elaborate weekend activities are out of the question. However, with a little creativity and by focusing on what’s most important, you and your beloved can still enjoy quality dates without going into debt. Try these ideas and formulate a few of your own to learn how to create romantic fun that will also create meaningful memories.

Money now is sparse and consumers are cutting back. Businesses know this, and in an effort to turn things around, they are using more aggressive tactics to spur people into buying. One age-old trick is putting together a flashy and interesting infomercial. Everyone has seen them – the infomercial is a half-hour TV commercial that exudes the best qualities and features of a product. Advertisers use a “live studio audience” to hype the product, along with an energetic pitchman to sell. He or she espouses the many virtues of the product and tells viewers how much more fulfilling their lives will be if they buy one, or even better, two!

Infomercial products to the test

Consumer Reports magazine did a survey of various infomercial products and questioned buyers about their performance. The “Slap Chop”, a tool used to dice foods, does so unevenly. It isn’t as seamless as it looked on TV. “The PedEgg”, a pedicure device, works, but unlike the TV infomercial, it isn’t a “self-cleaning” tool. Most consumers reported that it “left a mess.” Overall, there were a few high-performing items, like “The Magic Jack”, a voice over internet medium, but for the most part, infomercial items were a disappointment.

What to do about the flashy infomercial

When watching infomercials, there are some tips to avoid buyer’s remorse. Here are some of them, as compiled by Consumer Reports.

•Think for ten minutes. Infomercials are high-paced and that’s for good reason. The excitement of the host and audience increases viewers’ dopamine levels. That causes them to buy more readily. It’s that excitement that can be curbed by taking a few minutes to let the frenzy die down. Once it does, an impulse buy is less likely to occur.

•Listen for clues. One of the clear clues that an item isn’t worth the price is when suddenly the host of the infomercial drops the price, or if they suddenly throw in a “two for the price of one” special. That means the manufacturer is paying way less for the item and the markup is probably obscene. Money now is a highly coveted asset and consumers have to be able to read between the lines before they make the buy.

•Consider the options. Though the infomercial may claim to take care of an everyday problem, Consumer Reports’ writer Joan Santopaulo said, “Consumers should think of how they took care of the problem in the past.” She added, “If a pan of water and soap worked before, why spend more money on something that may not work…it’s the old adage: If it ain’t broke, why fix it?”

•Add-ons are unnecessary. When consumers call to buy an item, there are operators who will try to add on more features. Whether it is a supplemental item that costs an additional $4.99 or a totally different item that is discounted if a consumer buys, is it really worth it? Consumers should think about the total price they are paying for an item and stick to it.

Think before the buy

Money now is difficult enough to manage without the added stress of infomercial pressure. Although items may sound good for 30 minutes, research is showing that few products maintain their advantages when consumers bring them home. Using forethought and wisdom can save everyone money and free up wasted space on a garage shelf.

(Photo Credit: http://www.flickr.com/photos/joelogon/ / CC BY-SA 2.0)

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