Think differently about saving money

Americans are some of the worst savers in general. An article on YahooFinance offers seven counterintuitive ways to save money:

Spend money. You should limit unnecessary purchases but spend money on necessary upkeep and maintenance items that will save money in the long run.

Don’t stay home in front of the television. Instead of staying at home, take the initiative and take classes or attend seminars that will help improve your financial situation.

Don’t spend time learning how to invest. Wait until you’ve built up a nice nest egg and mastered your finances then learn about investing in individual stocks.

Don’t leave your investments to experts. Do your own research. It’s your money, learn how to manage and take responsibility for it.

Don’t let salary determine job choice. You’ll be more productive and eventually better paid if you are happy with what you are doing.

Don’t buy the cheapest things. Buy things of value that will last longer.

Don’t buy things on sale. Buy items on sale if they are items you really need.

Bad grocery shopping habits may be costing you money

We are all more conscious of how much money we are spending at the grocery stores these days. But even with coupons and a shopping list, we still may be spending more money than we bargained for. Here are ten habits, according to an article at Myrecipes.com, which may be costing you money at the checkout line.

Stocking up on a great deal: The purchase is only a great deal if the food gets eaten. Don’t overbuy even if the price is right.

Reaching for the “value size”: Be sure to check the unit price so you can calculate how much an item costs per ounce or per pound.

Buying 10 for $10: Unless there is a specified minimum purchase you can usually buy the amount you need while still taking advantage of the discounted price.

Skipping the store brand: Store brands offer good savings all year round and are not as inferior as people think.

Shopping leisurely: Studies have shown and supermarkets know that the more time you spend in a grocery store the more money you spend

Clipping coupons religiously: Coupons can save you money but not if you pick up an item that’s not a bargain or is an expensive brand you don’t normally buy.

Zoning in on “sale” signs: Just because it looks like a sale doesn’t mean it’s on sale. You should track items you buy regularly so you can evaluate a good deal when you see one.

Making a list: People make lists to help them remember what they need and to avoid impulse shopping but they tend to spend over 41% more that those who shop list free. If you use a list, make the list round menus but keep the store circular ready to take advantage of specials.

Swiping you card too early: Watch the scanner and make sure you are being charged the right price. Not all sales prices are updated in the registers so be vigilant.

Student loans not as plentiful for 2008-2009 school year

Many lenders are dropping out of the student loan market or tightening their standards every week it seems. Financial aid offices are worried. A law passed in May makes federal loans more accessible but private loans are harder to get. Many students and families are turning to the government for help. The Higher Education Opportunity Act which offers more transparency in the student loan process is awaiting the President’s signature.

In other news…
People that purchased pre-construction homes are losing their money and not gaining a new home. Around the country many new home projects are delayed or being scrapped all together and homeowners are unable to get their money out of these projects.

The pros to buying pre-construction is that you can buy at a lower rate, get first choice of unit and the ability to customize, will experience an appreciation in the time it takes to complete the project, and you can build credit during construction to get a better loan. The downside is that your deposit is tied up for years without interest and you may lose your deposit if the project falls through. Here are a few tips to help you avoid losing your money in buying preconstruction.

Be aware of how your financial situation will change between the contract and closing because you can’t apply for a loan until the project is finished.

Expect the project to be delayed.

To determine whether your preconstruction is a smart buy or not consider the competition being built in the future nearby.

Hire an attorney to make sure your contract is fair and your deposit is secure.

Research the developer and his projects in your city and in others.

There are pros and cons to many investment deals. The key is to be informed to minimize the risk and increase your return on investment

Protect yourself – medical identity theft on the rise

Medical identity theft is an uncommon but growing threat to people with health insurance. It’s a threat that could cost you your life. Medical identity theft occurs when someone steals your insurance card or other identifying information and obtains medical services in your name. This could lead to the perpetrator’s medical history getting mixed up with your own.

Some warning signs to look for are denial of coverage, unusual claims, and unexpected bills. If you are denied coverage because you’ve exhausted your funds for the year but made only a few visits to the doctor, contact your insurer. Insurers send out information about claims processed on your behalf. If you receive Explanation of Benefits statements but have not received treatment lately, contact your insurer. If you get bills or calls about procedures you’ve never received, contact your provider’s billing department immediately.

It’s hard to prevent medical identity theft because the perpetrators usually work in medical facilities with access to patient records. However, you can reduce your risk. Keep your insurance card number confidential. Don’t read your number in public and report a lost or stolen card immediately. Obtain a list of claims filed in your name each year and read any Explanation of Benefits statements carefully to make sure you received the services described. Get a copy of your records from each health provider you use to make sure there are no inaccuracies.

If you think you are a victim of medical identity theft file a claim with the Federal trade Commission (FTC) and a police report. These will help you dispute claims with insurers. Also, alert medical facilities where you think your identity was compromised, even if you haven’t been there, so they know too.

Before finding a second job, think about turning a hobby into a part-time business

The recession is making us all feel the pinch. We could all use some extra money. Instead of pounding the pavement for a second job, why not turn something love into a business? Since you’re already doing something you love, there’s no reason you shouldn’t make money from doing what you love. Outside of tax benefits from having your own business you may also relieve some of the stress or boredom from your full-time job because you have something to look forward to and it’s helping increase your bottom line. Helpful sites to visit for the business side are Entrpreneur.com and the Small Business Administration. Then I suggest doing a Google search to see how others are making money from your hobby. Networking through business and hobby-related forums will also be helpful.

Supermarket waste costing consumers

A U.N. report found that total food waste in America, including what we throw out from our homes, is about $48 billion a year. $20 billion of that is waste from supermarkets and they are passing those costs on to the consumer. As food costs rise, supermarkets are trying to find ways to cut waste and fine more environmentally friendly ways to deal with waste. Hopefully a reduction in waste costs will translate to a reduction in costs in the grocery aisles.

Two ways to offset rising grocery prices is to sell things you no longer need and to look for ways to save. When it comes to finding savings, try these tips:

Bundle your internet, cable TV and home phone services. There are companies that offer special deals or limited-time deals on bundled services. At bundlemyservices.com you can comparison shop companies nationwide. If you sign-up for a limited time offer, remember to call and cancel or renegotiate before the rates jump up.

Shop around for a better rate on your car insurance. There is a calculator at the California Department of Insurance web site that will allow you to comparison shop basic annual premiums of different auto insurance companies.

Ask for a lower rate on your credit cards. Pick up the phone and call you current card companies and ask for a lower rate. If they say no, be persistent and call back in a month or so. There are is a lot fo competition out there for your business so don’t give up. If you don’t have any balances on ytoru cards, consider switching to a credit card that pays you back in reward points. You can comparison shop credit card rates at LowCards.com.

To bring in extra cash put on your yard sale game face. You can sell things online through eBay and craigslist. Some newspapers also have free online classified ads. You can also buy print ads in newspapers and magazines. Try holding a yard sale or estate sale. Be sure to check with your city to make sure if you need a permit or not. You can also sell things to consignment shops and pawn shops. Consignment shops take a cut of the proceeds from the sale and pawn shops buy things at lower prices so they can make money on resale so you may want to sell your items yourself before asking others to sell them for you.

Terrorist Watchlist is almost at 1 million names. Do you have trouble flying?

Homeland Security has a terrorist screening center that created a terrorist screening database so that all federal agencies are working from one list when it comes to internationals and domestic terrorists. You can check out the FBI’s web site for answers to frequently asked questions about this database. The ACLU says the system needs to be fixed because many innocent people have fallen victim to being on the list including Nelson Mandela who was recently removed by President Bush.

Here again is another decent idea put into place with poor execution. The ACLU is right to call for controls of the watchlist. It is fine to protect America from international and homegrown threats but why does it take the ACLU to say that the system isn’t working? Why create a system that places people on a terrorist list but then fail to create an expeditious system for removing them from the list when it is found that their names were placed on the list in error? How effective is a system if an agency is only 100% sure that a small fraction of the names on the list are true threats? Collecting a bunch of names to show Americans that something is being done about terrorism and to give agencies the right to invade the privacy of innocent people is not the way to fight the war on terrorism.

Currently there is no way to know who is on this list. If you repeatedly have trouble being detained when flying, especially in and out of the US, cooperate with the agency but explain your problem and they will give you instructions for addressing the issue with the appropriate agency redress office.

FDA still looking for the source of the salmonella outbreak

Inspectors are in Mexico collecting soil, water, and produce samples from the three major tomato-growing producers. Farms in Texas and Florida are also under investigation. The FDA is not sure that tomatoes are the cuase of the outbreak. The agency is also looking at jalapeno peppers and ingredients used to make salsa, like cilantro and Serrano peppers. There are 225 cases of illnesses reported since June 1, so the source of the outbreak is probably not yet contained.

In other news…

Gas – Over the holiday weekend the national average for regular unleaded gas was $4.103. South Carolina has the cheapest gas in the country with $3.90. Drivers of SUVs are now in the triple-digit club of paying over $100 to fill up. As oil rises towards $150 a barrel, it seems a sure bet that the pain at the pump woll be with us for some time.

Websites of Interest:

Divine Caroline – Here is a website for women on the go. It has great travel stories ad info in general for every aspect of a woman’s life.

Vayama – Ever wonder what good etiquette is around the world? This website has an etiquette section that will keep you from committing social sins in other countries.

Prevention – Prevention magazine, in conjunction with the American Podiatric Medical Association, conducts an annual survey of the best and worst walkable cities in the U.S.

Small Town Gems – Here you will find a list of the best small-town destinations by state. Small towns are great places to get a feel for the people and history of a state. Check out the site and see what small towns near you made the list

Don’t miss out on family time together because of a slowing economy

Families can still enjoy time together outside the home by going to restaurants and hotels that offer reduced or free meals to children. This is great for everyone, especially families on a budget and single parents. Many restaurants across the country are offering “kids eat free” nights and specials. National chain restaurants are some best bets. Tuesday is the most popular night for these kid friendly deals but check with restaurants to find out which days they offer their deals.

Some helpful web sites are Kiddie Menu, Coupon Divas , and MyKidsEatFree.com . Be sure to read the fine print and call ahead to see if there are any restrictions. To find hotels like the Holiday Inn Hotels and Resorts that offer deals like up to four children able to eat free per registered family, use travel guides geared towards families and children’s travel.

Be safe. Wash your vegetables!

The current salmonella outbreak in tomatoes is a reminder that we should always wash our vegetables. The Food Network has a good article with tips on how to properly wash your vegetables. For tips on how to avoid salmonella I am also including an article from Yahoo News.

In other consumer news…

Free Gas – Business and organizations are offering relief at the pump as a way to attract more business. This MSN article highlights different companies, even a church, offering free gas. In addition to finding free gas, here is an article from Associated Content with tips on how to protect yourself from gas thieves.

Cutting corners and creative savings to deal with tightening budgets

There’s talk that relief from the recession and energy crisis may be almost two years away. To save money at the pump, consider carpooling to run your errands. If you have friends that live near you, share the driving, especially if you live in a more rural community. Going to the doctor, the bank, and general shopping venues can be 20 to 25 minutes away. Carpooling with friends may save you up to $50. Combine that with any savings from taking public transportation, carpooling, or biking to work and the savings could double. The savings will continue to increase as people also change their food-buying habits.

Where I live there is a Walmart, a Family Dollar, a Dollar tree, a CVS, an international grocery store, and two regular grocery stores. They are all within a three mile radius. One of the grocery stores has better quality products but my budget won’t allow for loyalty. Shopping for basic food items and store brands at the other grocery store saves me a lot of money. Buying household items at Walmart or the dollar stores saves me even more. Shoppers around the country have to do all we can to save. Food prices are projected to rise another 3 to 4 percent this year while wages are expected to remain the same. Below are some consumer saver websites that may be of interest:

Coolsavings.com
TheGroceryGame.com
Redplum.com
Coupons.com

Is travel becoming a luxury or is cheap travel still possible?

Flying is my preferred way to travel. However, the energy crises may be putting my love of cheap travel and last minute travel deals in jeopardy. Reports last week on the airline industry talked about layoffs, fewer planes in the sky, and reduced service on planes. Can we get peanuts anymore? Yesterday, thankfully, major airlines rolled back a $20 roundtrip fare increase, according to an article by the Associated Press. Many airlines are charging passengers if they check more than one piece of luggage. American Airlines is charging $15 for the first piece of luggage. The rollback of fare increases may be a signal that demand for airline travel is decreasing. This makes sense. If I am already paying $4 to fill my gas tank and I am being told that gas prices will continue to rise, I am going to think long and hard before I get on a plane. My vacation travel may be closer to home this summer. Luckily budget airlines like Airtran, JetBlue, and Southwest are still offering really good deals and they also have vacation package specials.
When booking hotel and car with your airline tickets, make sure you confirm your reservations. I would suggest doing this whenever you don’t deal directly with the hotel or rental car company. I have arrived at a hotel with confirmation number in hand but I didn’t confirm my reservation before I got there. Luckily they had rooms available and I was reimbursed when I was charged for my hotel twice. Another thing to watch is whether your itinerary is changed as you get closer to your travel date. As airlines decrease the number of flights you may not get the flight your originally chose, especially if you booked your flight three or more months in advance. The rise in fuel costs has the airlines scrambling so as you get closer to your travel date monitor your flight. Most airlines will email you if this happens.
A great web site is FareCompare.com. It allows you compare flights at all major airlines and budget airlines as well as gives you news about what’s happening in the airline industry. At the moment I don’t think airline travel is out of reach for the average person but if gas prices reach $6 as some are predicting, I think many will choose to stay on the ground and I may be one of them.