Seattle Simplicity

Alternative Ways for Quick Cash Before the Holidays

2011-11-22T09:23:00.001-05:00

There is no denying that many people are feeling financiallypinched and looking to make extra money. Perhaps you are contemplating another job but already feel overextendedat your current job and don’t want to use your remaining free time to workmore. Luckily, there are several ways tomake some extra money that don’t involve getting another job. Consider the following:

Sell stuff aroundthe house. We all have clutter. Identify the items you haven’t used in a yearor longer and sell them on eBay or Craigslist or at a garage sale.
Open a new bankaccount that offers a financial reward. There are bank accounts available that offer you anywhere from $50 to$100 after the account has been open a designated number of months (oftenthree) and you have made a designated amount of transactions (usually includinga few direct deposits). Meet the bank’srequirement, and you have free money.
Use credit cards toyour advantage. Many credit cardsoffer generous rewards. The best cash backcredit cards often offer 2 to 6% cash back on certain types ofpurchases. Use your credit cards for allof your purchases and reap the cash back rewards. (Just make sure you are disciplined to payoff the balance each month. Otherwise,the rewards will be offset by the interest you pay.)
Call to negotiateyour cable bill. Cable and Internetbills often are high. Call the companyto see what discounts they can offer you. They may offer you a discount for six months, or they may give youoptions for items you can cut from your service to lower your cost. Either way translates to more money in yourpocket.

If you are looking for extra money, the only solution isn’tto get a part-time job. There are plentyof ways to trim your costs and generate extra money if you are creative.

Guest Post by Melissa

What should you look for in a student bank account?

2011-10-12T08:59:00.000-04:00

Heading off to college is an exciting time in any young person's life, but it can also be stressful. With so many decisions to make regarding class schedules and dorm room décor, a student bank account may be the furthest thing from your mind.

College orientation weeks tend to feature credit card and bank representatives beckoning students to sign up for their financial services. Before you go with the bank dishing out the free gifts, look for one with better perks like a free overdraft.

Banks are going to entice college students into opening accounts because they view them as potential life-long customers.

Most students come to college never having held a separate account from their parents and those work-study funds have to be deposited somewhere.

Keep in mind that banks exist that offer free checking, convenient online banking, free savings and overdraft protection, all of which are better for students just learning how to manage finances on their own.

You need to choose a financial institution that has a convenient location.

A national or regional bank near the university will be best for easy withdrawals and deposits, but you also want to consider those emergency or regular care funds your parents want to send. Having a bank in their location as well as near the college will make it easier on everyone.

Make sure that ATMs are within a short distance of your university. Using another institution's ATM will rack up fees you don't want to pay. It's okay if your bank doesn't have an ATM on campus, as long as there's one within a short distance.

Although you may only be thinking about a student checking account at the moment, consider more long-term financial needs. Does the bank lend student loans? Do they offer online bill pay? Are credit cards available?

While you may be tempted to get customized checks featuring your college's mascot, remember that the plain checks serve the same purpose and are often free. Chances are you will be using a debit card more often anyway, so don't bother spending extra money having your school's name stamped at the corner.

Responsible students need to appreciate and utilize a savings account. If you plan to save money during college, consider a certificate of deposit (CD). These accrue higher interest and have to be left alone for a certain period of time, so you could open one during your freshman year and cash it in as a graduation gift to yourself. You can check out a full range of savings and current accounts at moneysupermarket.com.

Don't underestimate smaller regional banks and credit unions. These often provide better deals in regard to lower fees and higher interest rates than national banks and you may even find an on-campus credit union that caters specifically to students.

Set up your online bill pay early, preferably right after you open your brand new account, so you can learn how to pay your bills from the convenience of your dorm room.

If you're still unsure which bank to go with, ask around campus or talk to friends and roommates to get a better idea of where students on campus are banking.

No matter which type of account or bank you go with, be responsible with your funds and keep track of the amount of debt you accrue. You will probably be graduating with some amount of student debt as it is, so you don't want even more from credit cards and other loans.

Guest Post by MoneySuperMarket

Alternatives to savings accounts

2011-09-29T10:40:00.002-04:00

Saving money isan essential part of modern life and without a comfortable buffer, if the worsthappens, life can become pretty uncomfortable.

However, if youhave sufficient money in the bank and want to think about other ways to useyour spare cash, what options are there?

Investing moneyin the USgovernment is said to be one of the safest ways to make a return, despite thestate of the country's economy at the moment. Treasuries – or government bonds– are an investment that can offer either a variable or fixed rate return andoffer little risk.

The only downsideis that to get the maximum benefit, it is necessary to tie up funds for a longtime, with penalties usually enforced for withdrawals before five years.

Individualswilling to consider riskier vehicles could contemplate investing their money;an option that has the potential for great returns but also a very realpossibility of losing some or all of the capital laid out.

For this reason,investing is not a suitable choice for everyone and the general advice given isthat you should never invest money that would have catastrophic consequences iflost.

There are a hugenumber of investment options, of which simple purchasing of stocks and sharesis the one of the most commonly chosen and certainly the best-known amongst thegeneral public.

However, thereare a number of other options which could also be considered, such as forex –the trading in foreign currencies – a market that eclipses conventional stocksand shares and offers the same potential for gains.

Anyone with asignificant sum to invest might find real estate a viable alternative,especially with the current property prices at rock bottom and expected to riseas the economy eventually strengthens.

Savers with aparticular interest could opt to support a project or invest into funds with aspecial emphasis, such as eco-friendly schemes or sharia compliant shares.

Those who want tohelp a charity but do not feel they have the spare cash to make the donationthey would like might want to consider helping the cause out by purchasing abond, if available, or shares.

The credit crunchhas meant that borrowing from banks has become far more difficult andalternative means of lending are springing up. Peer to peer is one suchenterprise but to be successful, it obviously requires members who are willingto lend as well as borrow.

Applicants areusually thoroughly credit-checked and given a risk rating and lenders can bidagainst each other to offer the individual a loan at the rate of interest theyfeel reflects their credit score.

One golden ruleof thumb is that if the money is likely to be needed at retirement, it shouldbe moved to a low risk safe haven where it can remain without the danger offalling in value, at least two years proper to when it is likely to beutilized.

Article by LesRoberts, finance writer for MoneySupermarket.com, check out a range of savingsvehicles including the tax-free cash ISA atmoneysupermarket

Savings Bonds Explained

2011-09-09T20:39:00.000-04:00

Whenputting money aside for a rainy day, it is all too easy just to opena savings account and reap the meager returns that are offered.

However,there are other savings vehicles suitable for those who want toinvest their cash for the medium to long term but who do not want torisk losing their capital.

Oneof the most secure forms of investment are the savings bonds issuedby the government, which are available to purchase either as asavings asset or as a gift for another person.

Savingsbonds are provided by the federal government and act as a way for theUS to fund the debts it holds by borrowing money from the Americanpublic.

Thereare various type of investments available including fixedrate bondsas well as those offering a variable rate.

Themain types on offer are I and EE bonds that rack up interest duringthe term of the investment. These do not become payable untilmaturity.

Thefixed rate bonds available are primarily the I bonds that provide apre-agreed interest payment plus an additional amount set at a levelin excess of inflation. EE bonds can be fixed rate bonds but are alsoavailable as a variable investment.

Bondscan be purchased either via banks or online. Bonds purchased viabanks are only available in paper form while online banking offers anelectronic option.

Electronicbonds are far more flexible and are available in any denomination of$25. Paper savings bonds are slightly more fixed and offer the optionto purchase $50, $75, $100, $200, $500, $1,000, $5,000 or $10,000.

Electronicand paper bonds work in two different ways. Electronic bonds begin toearn interest immediately and start at the worth of their face value.Paper bonds, on the other hand, start off with a value worth half oftheir face value and reach maturity when the interest payments bringthe value up to their stated amount.

Electronicsavings bonds also have another very unusual feature. Despite havinga maturity date, they can go on earning interest for up to 30 years.

Ownersof the bonds are able to use the Treasury Direct website to track thevalue of their investment and see when their bond will stop earninginterest.

Aswell as being a safe haven in difficult economic times, because ofthe protection of the federal government, savings bonds also haveother benefits.

Theinterest on the various types of bonds can be deferred until thematurity date or earlier encashment, at which point it is not subjectto state tax, unlike other savings accounts.

Whilesavings bonds undoubtedly offer investors significant benefits, ifthey are cashed in before they have been invested for five years asacrifice equivalent to three months of interest will be made.

Inaddition, as a fixed rate bond locks in the interest payable, if theeconomic outlook changes during the investment period and interestrates rise, the bond can become less competitive.

How do you know your real credit score?

2011-09-02T00:28:00.003-04:00

Whilewe all know that it is important to have a good credit score, oftenwe do not think about our own score until we have credit declined,for example, when looking to arrange loans.It is important, however, to keep track of your credit score and takeaction if necessary.

Itis interesting that while most Americans have heard of credit scores,many do not know how they are calculated and what they are used for.

Ata basic level, your credit score measures your ability to repay loansand other debts. It influences whether lenders will lend to you and,if so, on what terms.

Acredit score is a bit like a report card. It records what debts youhave, whether you pay your bills and whether you make repayments onloans on time. Any missed or late payments are recorded.

Themain benefit of having a good credit score is that you qualify forbetter rates on loans and mortgages. Lenders see you as a good riskand reward you accordingly.

Itis not just when you are looking for credit, however, that yourcredit score is important. These scores are increasingly used as abackground check to evaluate you when you apply for an apartment orjob.

Sowho decides what your credit score is? There are a number ofdifferent credit agencies around. The main American ones are Equifax,Experian and Trans Union.

Scorescan be different at the different credit rating agencies because theymay have slightly different information from each other and may usedifferent ratings systems. There should not, however, be any majordiscrepancies between the different agencies.

Yourcredit score is constantly changing. You get points based upon theagencies' assessment of your creditworthiness i.e. your ability topay back your debts such as loans and credit cards. Your wholefinancial history is taken into account.

Thereare, however, some things that cannot be used to determine yourcredit rating such as gender, race, ethnicity and religion. This isbecause of equal opportunities legislation.

Thebest way to know what information is being held about you is toobtain a copy of your credit report. These are available for a smallfee but the agencies sometimes offer to obtain your report for free.You are also able to obtain a free copy if you have been deniedcredit in the last 60 days or are on welfare.

Thefirst thing to check is that it is accurate. If anything is wrong,you should contact the credit agency and dispute it. Even if yourdispute is not allowed, you are still able to ask for a statement tobe added to your credit file.

Ifyour credit score is poor, there are a number of steps that you cantake to improve it, such as paying off existing debts on time. It isalso important not to continually apply for new credit or loans asthese applications will all appear on your file.

Itis important to continue to have some form of credit such as loans orcredit cards, however, as no credit history can have nearly as muchof an impact as a poor credit history.

Thereare ways to rebuild your credit file. Some companies offer loans forpeople with poor or no credit history. These are usually for smalleramounts and are more expensive than conventional loans. They can,however, be a good way to demonstrate financial responsibility.

Inthe modern world, it is inevitable that we will all need credit atsome point, whether it is for emergency loans or big purchases oncredit cards. It is, therefore, important to make sure that yourcredit score is correct and take action if it could be improved.

How to Save Money on Cab Fare

2011-08-24T14:47:00.001-04:00

If you’ve tried to get a cab lately and got frustrated at how difficult it was or how expensive the cab trip was, I have some good news for you. Innovative applications and websites are popping up all over the Internet to help you find a cab quickly and for the cheapest possible price.

CabCorner
One of these neat new websites is CabCorner.com. Just select the city that you're traveling in, type in where you're located and where you'd like to go, and search for rides. Say for instances you're looking for a King County taxi that you can share. Hop on the web and search for others going the same route and share the fare. There is even a fare calculator that lets you know how much it will cost you before you get into the car. Plus, if somebody wishes to join you in the cab, then you can split the fare and then both of you save money!
Currently, this is located in most of the major United States cities, but it is getting jump started in major overseas cities too. As more and more people begin using applications and websites like CabCorner, even more people will be able to split rides. That means that even if this doesn't work for you right now because of some inconvenience—say it takes too long to find someone to split a ride with you--stay up to date with CabCorner and similar websites because eventually enough people will join it to make it worth your time. Then, it will be easy to find a shareable ride wherever you are.

Wheeels
Wheeels is trying pretty much the same thing that CabCorner is doing. It's just another way that you might be able to find somebody to share your ride with. Since there isn't a consolidated monopoly over taxi sharing services, it's a good idea to try to join as many as you possibly can to increase your chances of being able to split a cab quickly. Wheeels offers that convenience to you.

Uber
But then, there is Uber. They aren’t so much focused on letting you share a cab as they are at hooking you up with a taxi driver as quickly as possible. They use the cutting-edge of technology in order to cut through all the inconveniences that can sometimes accompany finding a taxi driver. All that you have to do is use your Android or iPhone with their application, and you can get a direct hold of the cheapest cab driver without having to waste a bunch of time on hold or leaving messages on peoples’ answering machines.

Get Taxi
Get Taxi ups the ante where Uber left off. They have that same great ability to order a taxi using your mobile phone. Then they combine it with the ability to get updates on where your driver is, how long it will be until he or she gets there, and all kinds of other useful information that takes the worrying out of finding a taxi. It hunts down who offers the best rates to save you money. Plus, it integrates the ability to rate drivers and read the ratings other customers have given drivers. This will help make sure that you don't end up getting in a taxi only to find that the driver is cranky, mean, or otherwise not so fun--all while saving you your hard-earned green paper!

Stita Taxis is a Seattle taxi service running a clean and green fleet of Prius to take you where you need to go.

Is peer-to-peer lending ever a good alternative?

2011-08-15T18:02:00.000-04:00

Peer-to-peer lending (often referred to as p2p) has become increasingly popular in the United States over the past six years. This new way of loaning money was seen as advantageous, but it does have many difficulties.

Peer-to-peer loans are financial transactions between individuals that do not need the input of a traditional financial institution or bank. The lender and borrower have a more direct connection.

Sometimes the peers can be friends or family members, but mostly these loans are arranged through firms with online websites. The use of internet technologies has enabled this idea to grow and prosper.

Peer-to-peer lending is not philanthropic however, so individuals who invest money into the agreement to allow the other party to borrow do expect a return.

Generally the process involves two parties, the borrower and the lender. Lending money can be highly lucrative because of the high interest rates charged.

Individuals with money want it to earn more money, but with low interest rates on savings, there is little positive return. Instead, these individuals are choosing to loan their money to others and receive a higher interest rate in return.

For borrowers, there are some advantages too, although the process also carries risk and difficulties with what some have seen as exploitation in an unregulated market.

In America, the two major firms have seen usage soar in recent years. After the global economic recession began in 2007, their popularity increased and has continued to grow.

These difficult economic times have meant that many people feel they cannot find the financing they need from traditional banks or businesses. For some people, desperation has led them to financing their loans in this way.

Also, peer-to-peer lending is seen as being more flexible than traditional sources of loans. For many people, the attraction is the immediacy of the agreement. Removing banks from the equation can seem like a saving because you are not paying their transaction fees.

However, the rates offered on loans can be as high as a normal bank or financial institution would offer and in some cases, even higher.

If you have a low FICO score and need money to finance a purchase, it may be tempting to use peer-to-peer lending. Be aware that unfortunately, not all transactions work out well.

There has been much criticism of the peer-to-peer lending model as one that can illustrate predatory lending or loan sharking. Both of these are unwelcome situations in which to find yourself.

Predatory lending is often defined as lending that is deceptive, fraudulent or unfair, whilst loan sharks are known for using nefarious methods such as blackmail or violence to extract money from borrowers.

Research suggests that most peer-to-peer lenders are not regulated in the same way as other financial institutions. This means that borrowers may find themselves with more problems should the transaction not progress smoothly.

Peer-to-peer lending may seem that it has some advantages, but like most things in life, it is too good to be true in its entirety. Smart borrowers will always use qualified and regulated financial institutions for their money needs because this is the safest way.

Why Use a Mortgage Calculator

2011-07-29T13:53:00.002-04:00

The financial squeeze means more or less everyone – including the US government – is looking at their spending and trying to find ways to trim any unnecessary expenses.

This means that an increasing number of people are scrutinizing their mortgages to see if they are getting the most competitive deal or whether it would be more cost-effective to move their home loan to another lender.

This is one way in which a mortgage repayment calculator can come in useful, as it can provide an indicator of what the likely instalments would be if you switched lenders.

However, it is important to remember that a mortgage calculator is only as good as the information that is put in and is designed to provide no more than a rough estimate of likely future costs.

Despite this, a mortgage repayment calculator can be a great way to get an idea of the differences between deals being offered on the market and reach a decision about which one is the best for you.

To get the best use out of a mortgage repayment calculator, it is necessary to know the interest rate that applies. This can usually be obtained from the lender's website or literature.

Some lenders provide their own online calculators that are pre-populated with the typical interest rate applicable, which simplifies the process somewhat.

All mortgage calculators need the amount being financed, the length of the loan and the interest rate applicable as a basic starting point. Some calculators are more complicated and take into account additional factors such as annual insurance – including principal mortgage insurance – as well as taxes, but these fields are usually not compulsory.

As well as using a mortgage calculator to work out how much the repayments would be for a deal already in the market, it can also be used as a handy budgeting tool.

Those on variable rate mortgages are watching the interest rates with trepidation, with many wondering what will happen to their monthly payment if the interest rate rises.

By simply adjusting the interest rate field, the repayment calculator can help by predicting how much you are likely to have to pay.

For those looking to find a bit more wiggle room in their budget, a repayment calculator can provide an idea about whether they could reduce their repayments.

By playing with various fields, such as extending the term of the loan, those looking to reorganize their finances can get a better idea of what effect various changes may have.

At the opposite end of the spectrum, those with a bit of spare cash may be wondering whether they would be better off overpaying on their mortgage or putting the money in a savings account. A mortgage calculator can show the effect that plowing some extra dollars in would have.

One of the best things about mortgage calculators is that they are free to use and available to anyone who has access to the internet.

Whilst the same information would be available from a mortgage broker, having the freedom to sit and play with numbers and work out the best deal without any sales pressure or time constraints, can be a very valuable tool.

Guest Post by MoneySuperMarket

5 things you should always shop around for

2011-07-19T09:36:00.000-04:00

There are many things we purchase throughout the course of our life that don't require a lot of pre-planning or forethought. There are, however, some important things that we purchase that should be carefully researched and considered before rushing out to buy.

In order to get the best value for money, make sure to shop around for items such as loans, insurance and your home/apartment. Automobiles and high-ticket electronics & technology should also be carefully researched.

There are a number of different types of loans we may need to take out at one time or another.

Student loans help us pay for our much valued college education. Automobile loans help provide us with the luxury of owning our very first brand new car.

Home loans help us buy that dream house we've always wanted. Home equity and personal loans make it possible for us to put in that swimming pool the kids have been begging to have for ages and ages.

As interest rates and repayment periods vary greatly from lender to lender it is important that you shop around for the product to make sure that you are getting the most out of your money. Comparison websites such as moneysupermarket.com are a great way of doing this as it cuts down on the amount of research required by you.

Check competing interest rates and figure out which loan terms best fit your situation. Do you want a 10-year loan with a higher interest rate or a 30-year loan with a lower interest rate?

Another item for which you should always shop around is insurance. Whether it's medical, home, auto, or life; insurance is a necessity.

Ask for referrals from people you trust. Often, a good insurance broker is a policy expert and can find the best policies for you, at the best prices.

Much as you would shop for a loan, consider using the same criteria when shopping for insurance. Purchase the policy with the terms that best suit you.

Do you prefer a medical policy with a low-copay and a higher deductible? Or would you rather pay a higher monthly premium and have a lower out-of-pocket maximum?

When shopping for a home or apartment, make a list of your "must-have" items, a list of "would-be-nice" items and a "no way, can't do it, won't deal with it" items. Work with a respectable realtor to help you find a suitable living space that meets your standards.

Do your research and shop around before buying an automobile. Whether shopping for used or new, take your time and find the best car for the best money. Dealerships offer some advantages, like on-site financing and service, but buying from a reliable individual may be less expensive because you're not paying for a lot of overhead.

Often, if you're trading in a car or if you have a substantial amount of money to put down on the purchase price, you can reduce your monthly payments significantly.

High-ticket electronics such as desktop and laptop computers, flat screen high digital televisions and home theater sound systems should be researched in advance. With the abundance of these items now being sold in warehouse-type chain retail stores, price shopping is easier than ever before.

Post by MoneySuperMarket

The Right Way to Obtain a Credit Card

2011-07-14T11:46:00.003-04:00

“You can save 10% on this purchase if you open a credit card at our store. Would you like to do that now?”

Make any purchase at a department store and, if you are not currently one of their store’s credit card holders, you will hear that pitch. You may have even fallen for it.

Credit card offers abound, but there are right ways to obtain credit cards and ways you should avoid.

The Wrong Way to Obtain a Credit Card

Open an account just because a store offers a one-time discount off your purchase. In most cases the 10% discount on your purchase will easily be recouped by the store. They are counting on you using the card frequently, running up a balance and having to pay interest (which many customers do). Don’t be enticed by the discount.
Apply for a credit card because you get a free tee shirt or mug. Credit card companies used to be notorious for setting up a table at a college campus and enticing students to open a credit card by giving them a freebie bag. Rules on this behavior are stricter now, but again, don’t sign up for a card just because you get a small item for free.

The Right Way to Obtain a Credit Card

Apply for one from your bank or credit union. Chances are they will have a reasonable interest rate and agreeable terms. (Still, be sure to read the fine print before signing up.)
Apply for one that offers you rewards. There are many credit cards that give members rewards. If you fly frequently, try a credit card that offers flyer rewards. If you drive frequently, consider getting a credit card that rewards you with gas discounts.

When applying for credit cards, make sure that you know what the APR will be, if there is an annual fee, and what the terms of payment are. Once you have done your research, open an account with confidence.

Credit is part of life, and if you are responsible about the way you obtain credit after careful research, you can make sure credit cards are a positive part of your life.

Are you a rate-hopper or a promo junkie?

2011-07-04T09:48:00.000-04:00

Rate-hoppers and promo junkies. You may have never heard the terms, but each apply to a certain type of credit card consumer.

As you may have guessed, rate-hoppers always keep a lookout for the lowest interest rates and make Balance Transfers more often than the average consumer.

Promotional junkies are lured by the promise of rewards and sign-on promos. A promo junkie may not care about balance transfers like the rate-hopper, but he'll sign up for more credit cards than he needs in order to reap the benefits.

Certainly there are true benefits to transferring balances to lower interest rate cards and for taking advantage of promotional offers, but there can be some disadvantages as well.

Rate hoppers know the value of a low interest rate. It is never a bad idea to transfer a balance on a high interest rate card to one with a 0% introductory rate.

Transferring a high balance to a 0% interest credit card can save a lot of money, even if the introductory period lasts for no more than a year.

The trick to taking full advantage of a balance transfer is to pay the credit card off in full before the 0% introductory rate ends. Most rate-hoppers, however, do not do this.

Rate-hopping can show up as a negative on your credit report. Some financial institutions have reservations about lending to a rate-hopper because of the number of closed accounts. They may assume you will bail out of your financial obligation to them before they can make a profit out of your business.

Promo junkies like opening new accounts with any company that offers a deal that's simply too good to pass up. Tempting promotions can come in the form of cash back, airline miles, free trips and those popular credit card points.

These promotional junkies dream of the day they can cash in those points for rewards, but it takes a lot of spending to rack up the points. Even if you don't use the card enough to stockpile the big points, some companies offer smaller awards such as MP3 downloads, books and DVDs.

Some credit card companies allow you to combine points with another cardholder, meaning you could end up sharing a reward that neither of you could have earned alone.

Other rewards include cash-back options. This means you can redeem those stockpiled points for cash or even a credit on your account.

The problem some promo junkies may run into is the temptation to apply for more credit cards than necessary. Having too many cards makes it more difficult to earn a substantial amount of points on one card alone. It may even mean a larger debt than intended.

Whether you are a rate-hopper, a promo junkie, or simply a savvy consumer, comparing credit card offers is a smart move. Utilize websites that allow you to compare cards before applying for any offer that comes in the mailbox.

Comparing credit card companies puts you in control. You can quickly see the card with the lowest APR percentage and lowest fees for balance transfers. The 0% interest period is plainly listed with other perks and rewards. Reading product reviews is another way to ensure you're making the right decision.

No matter your style, rate-hopper or promo junkie, it pays to be mindful of options.

Guest Post by MoneySuperMarket

Save on your Monthly Bills

2011-06-27T14:41:00.001-04:00

With everything from food to energy increasing in price alongside the economic downturn and government cuts, it has become even harder to keep within a monthly budget.

So just how can people cut down on their monthly outgoings without compromising on household necessities? With some clever financial planning and advice, we will show you how.

Firstly, deal with paying off debts and loans before any further spending. Take a quick look at our loan repayment calculator as it may be cheaper to consolidate your debt onto a new loan with cheaper rates.

If you are struggling to pay off debt within your current timescale, look to consolidate the debt onto a loan with a longer timescale, which will reduce payments to a more manageable amount.

Take a look at any big ticket items you may already have on finance, such as a sofa or car loan. If these are on finance agreements with the places of purchase such as the car garage, you may find the APR high.

These can often be reduced by switching this type of debt onto a loan using our loan payment calculator to find a better rate and reduce monthly outgoings.

If you already own a credit card, make sure that it is working efficiently for you and your circumstances. Look at whether you use the card for purchases or balance transfers.

If there is a large balance on the card, consider transferring it to a zero per cent interest balance transfer deal with another card provider.

Look out for credit card deals where there is a promotion period for zero per cent on purchases as well if you intend to spend on the card.

If you use the card for both, get two credit cards and use one solely for paying off a balance transfer at zero per cent and one for purchases.

When it comes to the weekly food shop or occasions such as Christmas, purchase using a credit card with cash back or rewards so that you gain from each shop you do.

The cash back or reward scheme can then be used towards other monthly outgoings, such as supermarket credit card reward points towards clothing or cash back to put towards the next month's food bills.

When it comes to shopping for larger items such as a television, do your homework to find the best price before purchase. Shopping online can often be cheaper and easier to compare prices.

Individual bills such as the home phone, digital television package and broadband can soon add up. They are often cheaper if you combine them all under the same provider, helping to reduce monthly outgoings.

Energy prices are set to increase again and therefore monthly bills will be hiked. Now is the time to shop around and fix your energy prices to freeze the current price for a set timescale and avoid the increase.

Combining our money saving tips with our loan repayment calculator could benefit your household, helping to reduce monthly outgoings and cleverly manage debt and spending.

How to Spend Less on Internet Service

2011-05-25T22:19:00.000-04:00

According to Federal Communications Commission, approximately 93 million Americans don't have access to home broadband because the cost is too high. If you are in this position or if you are just looking for ways to spend less on internet service, there are several savings options you can consider.

Look for Promotions

Every internet service provider runs periodic promotions. Some of these promotional offers are available to new customers; others are available to current customers. You can find information about potential promotions through sites that focus on internet service providers, coupons, and web deals. You can also contact your current ISP and others in the area to inquire about promotions available in your neighborhood.

Haggle with Your Provider

If you aren’t happy with the price you pay for internet service, try haggling with your provider. Be polite and explain why you think you are paying too much. Then, ask for a discount or a special promotional price. If that doesn’t work, let your ISP know that you are thinking of switching to another company. They may prefer giving you a deal to losing you as a customer.

Downgrade Your Service Plan

Some internet service plans come with extras like download boosters, web hosting, web development services, and multiple email addresses. Some of these extras are free, but others are offered at an additional cost. Check your internet bill and make sure you know what you are being charged for. If your bill contains extras that you don't use, get rid of them.

Lower Your Mobile Bill

According to recent estimates, nearly one third of all adults have a smart phone with internet access. This is incredibly convenient but can also be expensive. Make sure you are not paying more than you need to for your mobile service. There are several sites online, including LowerMyBills.com, BillEater.com, and FatWallet.com, that can offer you tips on lowering your mobile bill as well as information about special coupons, promotions, and offers. Don't be afraid to switch providers if you can find a better deal through another company.

Get Naked DSL

In 2005, the FCC began encouraging ISPs to unbundle their DSL internet service from their local phone service. This led to Naked DSL. Also known as standalone DSL, naked DSL is a type of internet connection that is available to people who do not have a land line telephone. This connection is available through several well-known internet service providers, including Verizon, AT&T, and Quest Communications. Naked DSL is relatively cheap and can be purchased for as little as $10 per month.

Go Back to Dial-Up

Dial-up internet service is not an ideal option for some people. It can tie up your phone line and does not run nearly as fast as other types of internet connections. However, it is very inexpensive. Dial-up can sometimes be purchased for as little as $10 per month. In some areas, it may even be free. If you need to slash your internet bill or if you only need the internet to access email and perform basic tasks, dial-up is worth considering.

Use Your Internet More

According to a Pew Internet Life Study, the average broadband user pays $39 a month for internet service--nearly $500 per year. If you are going to pay this much or more for internet service, make the most of your expenditure. Use the internet to watch movies, stay in touch with friends, and study the things that interest you. Doing so may allow you to save on other things like cable TV service, cell phone bills, books, tuition, and more.

Guest post from Karen Schweitzer. Karen writes about internet service providers for Internetserviceproviders.org.

Kitchen Improvements That Will Increase Your Homes' Value

2011-04-20T04:13:00.000-04:00

If you're trying to sell your home, you naturally want to get the most out of it. In some cases that means sticking a little into it first. There are many areas of a home that would benefit from a little spritzing up. Curb appeal is important, as is the overall integrity of the building which could be improved by redoing the roof. Remodeling the bathroom or home office could add to the structure's sale price.

Some people think the kitchen is the heart of the home. It's where people congregate before, during and sometimes after meals because it seems like something is always going on in the kitchen. When showing a home the kitchen is always important to the buyer. It stands to reason that improvements to the kitchen will increase your home's value.

Updated Kitchen Equals Increase in Value

According to some, improvements to your kitchen can produce a return on investment (ROI) of 80% to 100% of what you spend. That is a tremendous percentage. If you could be guaranteed of that kind of result from stock purchases you wouldn't hesitate to jump in with both feet. Updating your kitchen to increase your home's value is a proven path to greater equity. You also get to enjoy the improvements until the house sells.

Windows

Since the person who does the cooking and cleanup will be spending a lot of time in the kitchen, giving it an open, inviting look is important. Having a large window over the sink that looks out into the patio or backyard can provide something interesting for them to look at while preparing a meal or washing the dishes afterward. Installing new windows that are easy to keep clean will not only add to the value of the kitchen, but offer them a chance to daydream while they labor.

Countertops

One of the most popular improvements to modernize a home is to put in granite countertops. Quality granite countertops are well made, durable, and expensive. Those are all reasons they will add to the value of the home. Because they are tough as well as attractive, they provide the perfect combination of usefulness and value.

Stainless Steel Appliances

A standard kitchen improvement is to replace the old appliances. By installing matching stove, refrigerator and dishwasher, you add a sense of continuity to the kitchen. Stainless steel appliances are among the most popular upgrades available. They look good, will last a long time, and give the kitchen a modern, luxurious look.

Islands

If there is sufficient space in your kitchen, you may opt for an island. They are becoming increasingly popular because of their functionality. Useful as a place for the kids to do homework or just hang out and talk to mom while dinner's being prepared, an island provides extra space that's sure to be used. It is also useful as a place to eat informal meals that are easy to clean up. The top of the island would naturally match the countertops, giving the kitchen a flowing, finished look.

Lighting

A modern, updated kitchen needs lighting to match. Installing overhead and under cabinet lights should match the overall decorating scheme.

Flooring

The same goes for flooring. Many people appreciate wood floors, while others would go with vinyl or tile flooring. Whatever your choice, make sure it enhances the looks of the kitchen.

Cabinets and Drawers

Installing updated cabinets and matching drawers will also increase the value of your home. There are many styles and varieties to choose from, and they come in a wide range of prices.

On a Budget

As you've no doubt noticed, it's possible to spend a great deal of money on a kitchen remodeling project. Perhaps more than you're able to justify. Any kitchen remodeling project should maintain an overall flow with the rest of the home. If you have a modern, up-to-date kitchen but the rest of the house is falling apart you may be better off disbursing that money throughout the property. There are ways to improve your kitchen on a budget, but the results will be commensurate with what you spend--so will your return on investment.

Guest post from Bailey Harris, who writes about home insurance and related topics for www.homeownersinsurance.org.

Ladies, Have More Money in Retirement

2011-04-14T22:26:00.003-04:00

My sister has two youthful little ones. She just lately produced the comment that there were two milestones with every single of her children that made her experience like she received a elevate. Initially was once they switched from drinking method to milk; 2nd was once they became potty trained. She no lengthier had to purchase pricey formula or diapers (she didn't use cloth diapers). I recognized that I, too have provided myself a raise by removing some expenses around the previous couple of decades in my quest to simplify my life. I built the following variations, leading to substantial savings:

* I give up getting my hair highlighted. Annual cost financial savings: $1,120. I was a all-natural blonde in my youth. As my hair naturally darkened, I started out highlighting my hair in salons when I used to be 19 (I lived in Texas in the time - it was pretty much a requirement). It grew to become a vicious cycle to break simply because I generally needed to keep up with my 'roots.' Final yr at 36 I decided to conclude the madness. I obtained a superb colorist to match my organic color, and I obtained a few high-quality haircuts to eliminate these fried ends. I really like the flexibility!
* I stop getting manicures and pedicures. Annual price savings: $480. For a quick time (once again, even though residing in Texas) I obtained sculptured nails. But I won't even handle that expense. That fad ended for me right after a few decades. Following that madness, I might frequent the inexpensive nail salons in people strip purchasing centers to get a monthly mani/pedi. At any time my toenail polish would commence to chip, I felt the need to head back again to the salon. I loved the feeling of staying pampered in this kind of a girly way. But I realized two items: initially, there is no reason my nails can't look wonderful and presentable without nailpolish and second, there is no reason I cannot do it myself. I invested in a very superior manicure set, and now I do my very own nails just about every week whilst watching my favored show, Nova, on PBS. I actually delight in doing my nails, I do an improved position than the salons, and I get instant gratification.
* I give up obtaining department keep cosmetics. Believed annual charge savings: $200. I will not use considerably makeup - just blush, eyeliner, mascara and lipstick. I use for being a victim of all those cosmetics gift sets which can be provided in the department keep in case you shell out a certain quantity of income. I might acquire items I didn't require simply to obtain the present set. Talk about consumerism at its best. Due to this fact, I had a drawer filled with unpleasant lipsticks. I ended that madness by switching to drug save brand names and effortlessly, I cannot tell the variation in my cosmetics at all. I no lengthier purchase needless items, and I can affordably exchange my mascara just about every three months without having taking out a second house loan. .
* I quit purchasing cheap clothes. Believed annual cost financial savings: $800. I use to purchase various garments things every single period from retailers like Old Navy and Target. I believed I was becoming thrifty by searching there. They've cute designs, but obviously the garments will not previous more than a 12 months or two. As I entered my mid-30s, I realized that getting stylish wasn't as crucial to me anymore. Now I favor classic models and I only purchase quite higher top quality items from outlets like Brooks Brothers and Harold Powell. I shop very much less generally and simply maintain the garments that I very own. My winter season do the job wardrobe includes several turtlenecks, several cashmere sweaters, and three pairs of pants. Almost everything mixes and matches and I constantly feel good in my apparel. After the initial investment in clothes, I find I only must purchase underwear and socks on an ongoing foundation.

The total believed annual price cost savings is $2,600. Which is almost adequate to fully-fund my IRA. I really like raises!

Produced by SmallBusinessLoansDirect.com, visit us for restaurant business loans.

5 Ways to Get Out of Debt

2011-04-08T14:28:00.001-04:00

Everyone’s looking for the best (and quickest) ways to get of debt. The problem for a lot of consumers trying to get their finances back under their control is that they’re so steeped in unpaid debt, they don’t know where to begin paying it all back.

Here are 5 tips from My Credit Group for helping you chip away at your debt:

1: Pay according to highest interest

I won’t get into the Dave Ramsay debate because yes, I agree there’s something to be said about making small, quick mental victories on your road to debt repayment. But this article is about getting out of debt in the shortest amount of time possible, not small mental victories. With that said here’s our recommendation.
List your credit cards from highest to lowest interest rates -- including their minimum monthly payments. Then figure out every single penny you have to put towards getting out of debt.
Start making the minimum payments on all your cards EXCEPT for the one with the highest interest. That one gets every available penny. Once it’s paid off, move on to the next. Rinse and repeat

2: Have a garage sale

I’ve never personally had a garage sell, but I’m a fan now. We are moving into a new office in 2 weeks, going from a traditional space with individual offices, to a more open, modern environment. So, it was the perfect excuse to ditch all the Cherry wood, executive looking furniture and redecorate with all looking modern couches and bean bag chairs.
Now, because I’m lazy I voted we just donate all our old furniture so long as whoever was taking it picked it up so I didn’t have to deal with it.
Eventually, I was convinced to put it all up on Craigslist. I said fine, as long as I didn’t have to do anything (yes I’m that lazy sometimes). It was gone in two days and we made nearly $4000. In used furniture. Holy crap!
That kind of money could go a long way to pay off your credit cards or other outstanding debts. Do you have anything you could put on eBay or Craigslist?

3: Get all Abe Lincoln on Impulse Shopping.

Retail stores are experts at merchandising. They know exactly what to display and where to increase their chances of getting your money. Impulse shopping is one of the biggest killers of our bank accounts
I read a book on Abe Lincoln once where I learned Honest Abe had a habit of writing down anything he wanted to do when he was angry. He put those thoughts down on paper and locked them in a trunk for 24 hours and would later revisit those “impulsive” thoughts.
Apparently that 24 hour wait changed the course of history more than once. In fact, historians say that had he acted on those impulse thoughts, life today as we know it could be totally different. So the next time you see something you “have to have,” wait 24 hours before you buy it. It will still be there, but you might just find you don’t need it as bad as you thought you did.

4: Keep a monthly spending log

Last year we had a little experiment here at the office. Everybody was encouraged to keep either a little notepad, or handheld device with them at all times for a month. The purpose was to log every single purchase we made; right down to a pack of gum.
The results were pretty eye opening. Most of us don’t think twice about buying coffee, a pack of gum, a bagel or a little $2 ATM fee.
But after 30 days of logging all those little expenditures, the results might shock you once you add them all up. We encourage you to try it for a full 30 days. I’m willing to bet you’ll see an entire credit card payment’s worth of small little purchases you could have gone without.

5: Use coupons

Much like garage sales, I didn’t believe in clipping coupons. I shop for food pretty infrequently, and never really thought twice about bringing coupons along with me – even though my mom kept a vast coupon book which she took with her on her weekly grocery store trips.
Then I saw a show on TV about extreme coupon clippers who’ve turned the practice into a science. They showcased one lady in particular who brought over $600 worth of groceries to the checkout counter, and only ended up paying around $11 when all her coupons had been scanned and processed.

Now think about all the money you spend on groceries every time you make the trek to fill up your pantry. If you aren’t clipping coupons, you might wanna think about doing so before you throw out that Pennysaver.

This is a guest post from Marc Chase, President of Product Development for MyCreditGroup, a leading credit services company.

5 Simple steps to avoid credit card disaster

2011-04-08T09:39:00.002-04:00

In today's life credit is very popular among consumers because it maintain a standard of living . People can purchase any kind of their needs with the help of credit card but it can be a disaster for you if you will not maintain it properly. There are millions of people which are facing the disaster of credit card debt in recent days. So there are some easy tips by which you can reduce it .

1. Avoid excess use of credit card : Now a days lot of people purchase their their most of needs with the help of credit credit card and then then fell into credit card debt. Because if you keep your utilization ration of your credit card more than 30 % it will reduce your credit score. So you need to keep this below 30 % to maintain your credit score.

2. Avoid late payments : According to the new credit card rules you no need to give penalty of late payments of your credit card but it does't mean you cansleep peacefully and make late payments because according to new FICO rule lot of late payments can also affect your credit score . So always try to make payments on time.

3. Avoid variable rate cards : After the Credit Card Reform Act , most of the credit card companies are encouraging people to take variable credit card because in this the company can charge intrest on you so it is better to avoid it.

4. Don't take 0% balance transfer card : Most of the people take 0 % balance transfer card after the credit card law but you should avoid this because the credit card insurers has increase its fees from 3 – 5 % . It means you have to pay higher amount of noney for consolidating your credit card debt.

5. Don't take cards for kids : It is better to not take any cards for kids because you have to take the full the responsibility of all the payments . It means if your kid fell in the credit card debt then you need to pay it.

So that was some useful tips by which you can decrease the rate of credit card debt as well as it also help you to build a good credit score.

A study to see the condition of the investing market

2011-04-01T09:00:00.001-04:00

Singapore is the most fruitful and profitable place for the investors all over the world. Due to the debt crisis and inflation in US, the investors are shifting their base to other places such as Singapore. Investment is lucrative in all fields such as gold, real estate, stocks and shares. This also has given a few people chance to go for debt reduction options as the returns are better than other markets.

What does ING survey result show?

The survey results of ING Survey Dashboard result shows that the investing in Singapore market has increased 5% in the quarter 3 of 2010 that is, from 140 in Q2, it has increased to 147 in Q3. The investor sentiment is on the positive side as there is around 100% improvement in the investing market in Singapore from 73 for quarter 3 in 2008 to 147 for Q3 in 2010. The investors owe their confidence in the Asian market to the debt crisis in the US financial market.

The returns are very good and improved and the investors are very happy with the results. People are now buying properties and other stocks in the Singapore market to get better returns on their endeavors as well as get help of debt reduction options if they had any money overdue. Singapore ranks 5^th in the real estate market in Q3 in Asia after India, Philippines, Thailand and Honk Kong. This result excludes Japan. South-East Asian has emerged as top performers in case of investment.

What positive do banks say?

Seeing the huge market shift from the Western countries to the South East Asian countries, the banks have commented in the reason for this. They say that after Q2, the South-East Asian countries Singapore being one of them have a seen a surge of investors. They had feared that since the debt crisis in US markets has improved a bit, people will invest there. But investors are not taking any chance and investing in Singapore and other neighboring countries. The most important reason for investors to invest in Singapore is the optimism in the housing market. But some of the optimism was removed and replaced with some of the other measures.

What negative do banks say?

But there is also some downfall in this type of market upsurge. Investors have to watch out for global currency war in 2011 as the US dollar will be weak for sometime. The US Federal Reserve may implement some measures to make improvement in the consumer price index. The interest rates in South-East Asia will be low but will create asset price overheating and pressurize the market currency in Asia to increase their value. Until the economic conditions improve, Asia has to deal with inflationary measures.

The interest rates are quite low so the most lucrative areas to invest in Singapore are gold, bonds, real estate and telecommunications. The personal financial market in Singapore and other Asian countries have improved so much that investors are forecasting for better market conditions in the future.

Hypermiling Basics

2011-03-22T22:26:00.000-04:00

In the event you own, drive or your just thinking about buying a car, the buying price of gas Really should be major concern. Auto makers are putting up some impressive numbers when it comes to MPG to aid the earth, but mostly to help sales. New cars such as the Honda Civic Hybrid are boasting MPG of 45 if not more, but this is almost nothing when compared with what some drivers are obtaining out of there tanks.
What if I said that on a single gallon of gas you can boost to 200 miles. Yes that’s 200 miles. Well, I can’t really make claiming, but Wayne Gerdes the king of “Hypermiling” can. Gerdes drove 2,254 miles on a lot less than 14 gallons of gas, and also this was a student in 2006. Since then Hypermiling has grown to be some what of the talent that is quickly spreading. The Oxford dictionary has even selected the phrase as the best new word for 2008. Gerdes website clean MPG is a Mecca of info about Hypermiling techniques. fuel efficient autos and also a forum for hypermilers to congregate. You can even educate yourself on the techniques they may be using to realize these incredible numbers.
Bankruptcy lawyer las vegas tools to acquire the most out of your tank such as Scangauge 2, it monitors much of your cars data, like speed, fuel use, fuel till tank is empty and even more. Having pretty much everything information can guide you to refine your technique and perfect your art.
It is simple to adopt a few of these skills in your everyday drive and low cost if you are at it. The name might sound just a little crazy, but it's really only learning how to be considered a better driver. In reality, it's rather a great big win for you personally, figure out how to become a better driver, save fuel and funds and help you save the earth.

IFAs and Changes in Personal Finance

2011-03-18T08:00:00.002-04:00

This post is from the NerdWallet.com team of finance writers and experts in helping consumers find the best rewards credit cards.

The Finance World is Changing. Independent Financial Advisers Could Help.

The way people are handling their personal finances is changing greatly, so many are turning to IFAs, or independent financial advisors.

There have been recent adjustments to the tax code, bankruptcy laws, and debt management regulations, which means that big changes have to be made in the way people handle their household finances. Many believe this will lead a greater number of people to turn to financial pros for advice. It’s not always easy making financial choices, so the right IFA can make it simpler, and can even be more cost effective.

Changes in Financial Planning

With the economy taking a beating, changes have been made to state benefits and financial products, which will have an effect on those planning for retirement. Fixed income yields are unnaturally low and a lot of experts are also predicting lackluster equity returns for the foreseeable future. This means that people will have to re-calculate how they’re going to live after they retire. Two of the biggest factors that are driving people to find IFAs are investments and retirement planning. Experts believe that this trend is going to continue on for some time.

Financial advisors are around to help consumers plan and arrange their finances. They will help to customize an investment portfolio for you and help to manage it. They can also provide timely updates regarding accounts and the financial markets. In case you’re in need of more advice, you can seek help about managing credit card debt or help in choosing the correct low APR credit cards to minimize your interest expenses.

All Advisors are Not Created Equal

Independent financial advisors are not all created equal, and not all have the same services available. The best advisors that you can find will not be affiliated with just one company (hence the “independent” nomenclature). This type of advisor will most likely give you the best advice and will offer more options for financial solutions from various companies and their products. Then you’ll either pay for their advice by commissions or by a flat fee schedule.

You should ask your IFA whether he or she is tied or independent. If he or she is tied, then they will only be able to advise products from the company that they’re tied to. Independent IFAs have access to all types of products that are on the market. You should also inquire as to how long they’ve been an IFA, and to see their credentials. The minimum requirements for an IFA are the Certificate in Financial Planning and the Certificate of Financial Advice. The FSA (Financial Services Authority) regulates and authorizes all IFAs.

It’s important that you also find out how the IFA charges for their services and if they offer ongoing services. You may not want to go with one that charges hourly, especially if you’re looking to take a buy-and-hold or hands-off approach for your financial portfolio. This will give them the opportunity to tinker as much as they can, charging you more. In this case, a commission-based IFA could be more suitable, since there will be fewer transactions to pay for.

Beginning Your Financial Planning

When it comes time to begin financial planning, it’s important that you look at where you are today, and what resources and financial goals you have. An IFA is able to help you plan out your financial goals by gathering your financial info, determining life goals, looking at your financial status now and helping to strategize a way to achieve your goals.

These are also good tips for what you should be doing on your own anyway, but it can always help to get a second opinion. They can also give you better steps to take and the best products to use, that aren’t typically found in resources like Money magazine.

Since the new year has come and gone, it’s the perfect time to take control of your personal finances and investment options. You could save yourself a big headache in this downing economy by seeking advice and looking into an IFA.

Fiscal Seasons Most People See During Their Lifetime

2011-03-15T09:00:00.002-04:00

As people move ahead within their lives, there's a tendency for your vast majority of us to undergo diverse fiscal seasons. Throughout these seasons, our targets modify due to adjustments within our financial situations. These seasons, or phases, might be described as the asset accumulation phase, the conservation and protection phase, as well as the distribution and gifting phase. While not all individuals undergo the seasons simultaneously as well as reach a selected phase, a fantastic amount of people today do undergo all 3 phases sooner or later in their lives. Right here can be a standard timeline for every phase, together with the widespread aims and worries related with it.

Asset Accumulation

This phase may be the starting position in a monetary journey. It generally begins when a man or woman enters the workforce, between the ages of twenty to 25. The beginning of this phase is characterized by minimal money for investing, a fairly large amount of financial debt, plus a low net worth. The debts may well arrive from college loans, vehicle loans, credit card debt, or all three and much more. Due to the fact there are not a substantial amount of assets owned by the person, there is generally not very much imagined provided to economic dangers that exist.

But as being a particular person progresses via this phase, much more cash is accessible for investing, the quantity of financial debt being a proportion to their assets decreases, and their net well worth rises steadily. Two of your most regular assets folks want to accumulate on this phase are a car plus a house. This phase generally lasts till the age of fifty.

Conservation and Safety

This phase begins immediately after the person has acquired some assets, when the individual reaches their late 30's or 40's. Through this season, the person has even more improved their net well worth and decreased their proportional utilization of financial debt. Now, as individuals assemble up more assets, they usually turn into less tolerant of possibility. Alternatively, they are more worried about losing what they've obtained than on receiving much more. They are more concerned with pitfalls that they could not have thought to be in the course of the asset accumulation phase. These consist of, but will not be constrained to, the hazards of untimely death, unemployment, and long-term disability. As such, they begin to contemplate the need to guard on their own from these hazards by acquiring the related types of insurance.

Many people might basically even now be from the asset accumulation phase likewise, attempting to accumulate far more while hoping to not get rid of what they've acquired. This phase commonly lasts for your overall time that the man or woman remains in the workforce. And for many people, this phase could previous for his or her overall lifetime.

Distribution and Gifting

This is the very last in the 3 phases, and commences when a particular person has realized that they could manage to expend on items that they've never considered achievable. Heading through the two earlier phases successfully makes this phase achievable. For some, this phase may begin as early because the late 40's.

Sizable investments, lower debt, as well as a high net value characterize this phase. People with this period begin to come to feel economic pressures declining, and look to appreciate their lives additional. Existence insurance premiums might be dropped as well as other deductibles may be raised. With their built-up prosperity, these individuals may well contemplate spending for his or her grandchildren's college tuition and going on expensive vacations. They might also check out much more often with the estate planner to program the final decades of their lives as well as the subsequent transfer of their wealth.

What About You? So what time are you currently in right now? Do you might have any motivation to achieve the following phase? If so, what steps are you taking for making this happen?

In Trouble Financially? Help Is At Hand.

2011-03-09T23:40:00.003-05:00

If you find yourself in a position when paying the bills every month is becoming more and more difficult and you have no idea how to make ends meet, then do not worry as you are not alone. As the cost of living spirals many people's income does not increase, leading to a deficit in the bank account or on the credit card, which each month gets bigger and bigger as you end up just paying the interest off each month and nothing more.

It probably feels like there is no way out of this black hole and that bankruptcy is
looming, but the good news is there is. In fact there are several options open to you, including debt management plans, debt consolidation or bankruptcy. Although each method is not likely to suit every occasion and circumstance, the variety gives you the ability to choose which is the right way forward for you.

Finding a good debt consolidation company to give you expert debt advice will help you decide what the best options for you are. Bankruptcy is usually the last option but you may decide after careful debt advice and considering your debt management plan that it is the least stressful and most manageable path to take.

The first task to be considered before even considering the bankruptcy route is to look at
your current finances in detail and see if it is possible to put together a debt management plan. The best debt management plan may be to consolidate all your debts onto one loan and hence pay it off at a slower rate but with less interest per month. It does take longer to pay off with this method, but your monthly payments will be less and you will not be on any credit default lists, as long as you continue to pay off each month. However, you will probably pay a little more for your debt in the long run.

Receiving good debt advice will probably mean that you conceive a debt management plan that you and your creditors agree to, that allows you to pay off your debt on a monthly basis at a fixed rate that is achievable. Creditors will often freeze the interest in this case, in order to help you clear the debt. If you go bankrupt a creditor is less likely to see any money returned so this is a more viable option for them and the benefit to you is that the debt is completely cleared after a certain timescale.

Each case is different and will be considered on individual merit. The important aspect when in dire straits financially is to take action and get debt advice from a reputable company that knows the score and is there to help you become debt free. And if bankruptcy is the best choice for you then rest assured within a few years your financial life will be back on track.

401K Debt Reduction

2011-02-22T19:00:00.000-05:00

Many people started experiencing financial trouble during the recession, and nothing can be more damaging than high interest unsecured credit card debt that isn't getting paid off. Unfortunately, the current trend of using your 401k as a way to get a secured debt consolidation loan can lead to trouble down the road that is best avoided if at all possible. Read on for a few reasons why using your retirement money for consolidating credit card debt is a mistake.

Your 401k Should Stay Tax Free And Interest Building

Using part of your 401k balance to secure a debt consolidation loan means the money that you borrow stops saving you tax money and building interest. While your retirement fund is left alone, it compounds interest on tax free cash constantly. If you use that money as collateral for a secured debt, it just sits there doing nothing until your debt is paid off. For many people this down time can end up pushing back a comfortable retirement due to the financial burden it will cause in later years.

Never Risk Your Retirement Savings

While your 401k may seem like a safe source of money, that could change if you are ever fired or laid off. With economic troubles surprising many people with unexpected job loss, using your retirement money on debt consolidation instead of enrolling in a debt counseling service can be a huge risk. Your loan may need to be paid in full immediately, and there is no guarantee you'll be able to transfer your 401k to a new employer fast enough to avoid the problem.

Instead of using your 401k for debt consolidation, consider looking into a plan that will help you get your debt handled without touching money you need. There is no reason to put your potential future retirement at risk to pay off debt right now.

Sandra White is a writer for FranklinDebtRelief.com.

Guest Post: Reading Your Credit Report

2011-02-04T09:00:00.000-05:00

Experts often stress the importance of maintaining a good credit record, but few of us really understand what goes into the reports. Most people just know that banks use it to evaluate potential borrowers. Everything’s summed up in a single score, but how does it get there? Can you do anything to influence your credit report, as with a credit repair company? This guide shows you a detailed look at credit reports and what they can mean for you.

Credit History
This is the most important part of a credit report, and the part that credit repair companies are most concerned with. Your credit history shows all your past and current obligations, including credit card debt, mortgages, and personal loans. It will also show the date the loan was opened, the payment history (including any late or missed payments), and the amount still owed on the loan. Generally, the lower your total debt compared to your income, the better your credit score will be. Child support and overdrawn accounts may also be listed.

Public Records
This section shows any collection accounts and data from local courts. Foreclosures, Short Sale, bankruptcies, wage attachments, and court judgments all show up in this part of your credit report. Each entry stays on your credit report for a given number of years determined by the state, and cannot be removed by any credit repair techniques. In most states, foreclosures and bankruptcies last seven to ten years, while short sales last five to seven.

Credit Inquiries
Your score may also be affected when a third party pulls up your credit report. Banks usually make inquiries when you approach them for new credit, so inquiries from too many banks in a short time can be suspicious. Your score doesn’t suffer, however, when you pull up the report yourself or when an unauthorized company requests access for informational or promotional purposes. Avoid suspicious inquiries by giving your personal information only to banks or institutions you seriously plan to do business with.

Credit Score
Credit scores range from 350 to 800, with higher scores meaning better creditworthiness. People with higher credit scores are more likely to get approved for loans and get the best rates. Each of the three credit bureaus—TransUnion, Experian, and Equifax—uses a different formula, so it’s normal for credit scores to vary from one credit report to another. A credit repair company can help you correct discrepancies between the three, but only if there are erroneous entries.

About the Author
Author is a professional short sale/ real estate agent who completely have a handle on the Short Sale process and helps people who need short sales, or who want to sell for any reason. He also helps people who are having difficulty but want to keep their home. Visit his website to get more
information about Short Sale.

Give Yourself a Raise

2011-02-02T20:39:00.000-05:00

My sister has two young children. She recently made the comment that there were two milestones with each of her children that made her feel like she got a raise. First was when they switched from drinking formula to milk; second was when they became potty trained. She no longer had to purchase expensive formula or diapers (she did not use cloth diapers). I realized that I, too have given myself a raise by eliminating some expenses over the past couple of years in my quest to simplify my life. I made the following changes, resulting in significant savings:

I quit having my hair highlighted. Annual cost savings: $1,120. I was a natural blonde in my youth. As my hair naturally darkened, I started highlighting my hair in salons when I was 19 (I lived in Texas at the time - it was pretty much a requirement). It became a vicious cycle to break because I always had to keep up with my 'roots.' Last year at 36 I decided to end the madness. I got a good colorist to match my natural color, and I got a couple of high-quality haircuts to eliminate those fried ends. I love the freedom!
I quit getting manicures and pedicures. Annual cost savings: $480. For a brief time (again, while living in Texas) I got sculptured nails. But I won't even address that expense. That fad ended for me after a couple of years. After that madness, I would frequent the inexpensive nail salons in those strip shopping centers for a monthly mani/pedi. Anytime my toenail polish would start to chip, I felt the need to head back into the salon. I loved the feeling of being pampered in such a girly way. But I realized two things: first, there's no reason my nails can't look nice and presentable without nailpolish and second, there's no reason I can't do it myself. I invested in a good manicure set, and now I do my own nails each week while watching my favorite show, Nova, on PBS. I actually enjoy doing my nails, I do a better job than the salons, and I get immediate gratification.
I quit buying department store cosmetics. Estimated annual cost savings: $200. I don't wear much makeup - just blush, eyeliner, mascara and lipstick. I use to be a victim of those cosmetics gift sets that are offered in the department store if you spend a certain amount of money. I would purchase things I didn't need just to get the gift set. Talk about consumerism at its finest. As a result, I had a drawer full of ugly lipsticks. I ended that madness by switching to drug store brands and naturally, I can't tell the difference in my cosmetics at all. I no longer purchase unnecessary items, and I can affordably replace my mascara every three months without taking out a second mortgage. .
I quit buying cheap clothes. Estimated annual cost savings: $800. I use to purchase several clothing items each season from stores like Old Navy and Target. I thought I was being thrifty by shopping there. They have cute styles, but of course the clothes don't last more than a year or two. As I entered my mid-30s, I realized that being trendy wasn't as important to me anymore. Now I favor classic styles and I only purchase very high quality items from stores like Brooks Brothers and Harold Powell. I shop much less often and merely maintain the clothing that I own. My winter work wardrobe consists of a few turtlenecks, a couple of cashmere sweaters, and three pairs of pants. Everything mixes and matches and I always feel great in my clothes. After the initial investment in clothing, I find I only need to buy underwear and socks on an ongoing basis.

The total estimated annual cost savings is $2,600. That's almost enough to fully-fund my IRA. I love raises!

Ways to Save Money - Even on Phone Calls

2011-01-31T20:00:00.000-05:00

With the recent credit crush putting further pressure on household budgets, more and more people are finding that they need to tighten their belts and look out for ways to save money. Luckily there are plenty of ways you can help trim expenditure and help balance the books at the end of each month.

Once you have made a list of what is coming in and going out of the household each month and you have got a good idea of how much you need to save, have a really close look at what you are spending and identify areas for action.

If the weekly shop is one of your biggest outlays, try shopping a little bit smarter this week. Are there any coupons you can take advantage of to cut the weekly bill? Or how about taking advantage of those famous 'buy one get one free promotions'? They might require a little upfront investment but as long as you are only buying what you would need anyway, you should save money in the long run.

Try to cut back on money you spend going out. Consider staying at home to watch a film, rather than paying for the cinema. Of course, one risk of all this time spent at home is that you will start running up a bigger phone bill in an attempt to keep in touch with your friends. Luckily, there are many ways of reducing calls costs if you are prepared to do a little work, even if you need cheap calls to India.

Home override providers can help provide cheap calls to Australia by re-routing your call via a low cost number. If you have family in Delhi, cheap calls to India (or indeed cheap calls to Pakistan or wherever else you are calling regularly) can really make a difference to the monthly bill and these services are actually very straightforward to use. For example, if it is cheap calls to Australia you need, then the override provider will simply give you a special number to dial that will connect you to their network. Once you are through to that, you simply dial the number of whichever friend or relative you are trying to contact and from then on it works just like a normal call.

Just putting into practice the tips above should produce a decent monthly saving, getting cheap calls to Pakistan alone would make a significant dent in many household's budgets, but you can step up your efforts even further by doing some or all of the following suggestions; walk or take public transport and leave the car at home to save on pricey fuel costs; take a packed lunch and drink to work rather than buy expensive pre-packed sandwiches; or perhaps spend some time on E-bay making some money from those unwanted Christmas presents.

America is in Debt

2011-01-25T19:00:00.001-05:00

America is in Debt. It's no secret. Between this terrible recession, the crazy number of foreclosures, and home prices dropping significantly, people have been forced to rely on debt even more than usual

The national problem with unsecured debt, typically in the form of high-interest credit cards, is partly to blame why payday loans became a necessity for some. Unsecured debt threatens to become an issue of comparable significance as consumers scramble to find an appropriate solution. The good news is that there are solutions available, and that there is one that is likely to suit your circumstances better than the others. Each has its own set of benefits and shortcomings, and it is imperative for the consumer to collect enough information to make the proper choice of a solution.

Sadly, many consumers have compounded their financial predicaments by choosing a solution that was a poor fit for their particular situation. An online cash advance helps the problem in the short-term, but it's far from a good solution. Often times, this 'solution' causes more stress than the original problem, and compound interest can be killer.

There are 5 main categories of debt relief solutions to choose from. They are listed here in the order of the severity of the debt problem, from the least severe to the most:

Frugality - Reduce expenses and increase income if possible. This can solve a small problem, but when you're really feeling the pinch, keep reading.
Debt Consolidation - Take out a HELOC to pay off the high-interest debt. Unfortunately this solution is very difficult to implement due to the loss of equity most homeowners have experienced. Tight lending guidelines now dominate the lending industry.
Credit Counseling - Consumers can enroll in a debt management plan (DMP) to reduce interest rates, stop over-limit and late fees, have a consolidated monthly payment, get relief from collection phone calls, and become debt-free in 5 years or less. It's a drastic step, but has worked for some.
Debt Settlement - Sounds good, but there can (and will) be a major hit on your credit report. Maybe the costs are outweighed by not having that burden hanging over your head?
Bankruptcy - Chapter 7 or a Chapter 13 repayment plans are available, but a new 2-part "means test" for Chapter 7 that was instituted in 2005 effectively disqualifies many filers and forces them into Chapter 13 instead. The consequences for the consumer's credit are severe, lasting from 7 to 10 years. This is definitely a last resort and this decision should NOT be taken lightly.

Is there a more Beautiful City than Seattle?

2011-01-23T13:56:00.003-05:00

Seattle is the most beautiful city. I just had to share...

Deals at Local Grocery Store

2011-01-21T00:15:00.001-05:00

Unfortunately I do not live close to a warehouse store like Costco or Sams. I stumbled upon a chain of stores called Grocery Outlet. They are only located in western-U.S. states. I visited one a couple of weeks ago and wasn't very impressed.

It was kind of grimy, and when it comes to food I like to shop at a really clean store. I visited a different location a couple of days ago, and this one was very clean. You can get good deals on food, although much (but not all) of what they carry are never-heard-of brands.

What impressed me the most was the great prices on beer and wine. I bought a bottle of red wine that was originally $18, marked down to $3.99 and it was delicious. I also bought a two-pack of Progresso spaghetti sauce for $2.99. They also carry many national brands of dog and cat food. If you have one close by, it is worth checking out.

Simplifying Christmas - a Ban on Catalogs

2011-01-19T03:15:00.000-05:00

Have you noticed during the holidays that catalog companies send multiple copies of the same catalog, each with unique cover art? It is amazingly wasteful, not to mention annoying. I live in Seattle where the local government recently made recycling mandatory.

If the garbage man finds recyclable materials in your trash he can slap a fine on you. I think it is a fantastic program because I have been a compulsive recycler for a long time. I have been known to fish bottles and cans out of my coworkers wastebaskets and take them to the centralized recycling bins on our office floor. Luckily, they find this to be an endearing trait.

So it won't surprise you to know it pains me to haul a heavy load of catalogs to my recycling bin each month. Dawn at Frugal for Life recently wrote an article about how she helped her aging mother who was bombarded with junk mail.

Earlier this year, I embarked on a similar mission with unwanted catalogs. I called the 800 number in the catalog and requested that my name be removed from their mailing list. They all agreed to do so, but informed me that I might receive one or two more catalogs before they stopped arriving. So I would tear off the cover and place it in a drawer so I knew I had already called them when a subsequent catalog arrived. You wouldn't believe how thick that stack became. Just in time for the holidays, all the unwanted catalogs quit arriving.

My load to the recycling bin is much lighter, I helped to reduce unnecessary waste, and I no longer have to deal with stacks and stacks of catalogs during the Christmas season.

Starting Net Worth December 2010

2011-01-18T23:54:00.000-05:00

I should have been an accountant. I love to track numbers. I have a spreadsheet that dates back to 1998 when I started to track my net worth. It is gratifying to look back on the progress I've made and to see how things like consistent saving for retirement, or buying and selling a house affects the numbers. My December Net worth tally is $395,602. Here is how that breaks out.

Assets	December 2010
Condo	$285,000
IRA	$141,000
401(k)	82,000
Money Market	$28,700
Car	$12,000
Pension	$14,450
Checking account	$3,000
Total Assets	$566,150

Personal Liabilities
Mortgage	$185,000

Net Worth	$381,150

Mystery Shopping Can Be a Pain In the Patootie

2011-01-17T12:30:00.001-05:00

Early last year I stumbled across an article in the Wall Street Journal with the enticing title How One Entrepreneur Lives Large -- for Free. It's an article about how one woman replaced her Wall Street salary with mystery shopping assignments. I was enthralled. It sounded so easy, so flexible, so desirable! What if I could ditch my corporate job and mystery shop full time?

I took the time to get my silver MSPA certification and then embarked on signing up with as many mystery shopping companies as I could. I did all kinds of assignments from evaluating retail stores and gas stations to dining in five-star restaurants. I was on my way to a new career! But then I realized that the payoff just wasn't there. There is a lot of time involved with completing an evaluation. Then the really time consuming part starts when you complete the write-up on the assignment. It just wasn't worth the effort to me. Some evaluations took three hours to complete the typed report. And all I got in exchange for that was a reimbursed dinner meal.

But during my little mystery shopping experiment, I stumbled across one company that offers restaurant evaluations in exchange for a reimbursed meal and a ten-minute survey on the service I received. I just returned from lunch there today, and I truly enjoy dining at the restaurant. I have shunned mystery shopping from all other sources, and only work for this company. I am treated to a few free meals a year and I always look forward to the experience. (For confidentiality reasons, I can't share either the mystery shopping company or restaurant with you.)

But all the initial pain and suffering of sifting through the mystery shopping world paid off. I am required to take a dining guest with me to complete the assignment, so I have become very popular with my coworkers for the periodic free lunch they receive!

Could You Live on Half Your Salary?

2011-01-13T22:31:00.000-05:00

At a dinner party last night (where I served my Italian grandma's famous lasagna...mmm) the topic of part time work came up. A friend of ours who has a new baby has shifted to working only two days a week. She is part of a two-income household, which makes it easier to accomplish such a thing, but it got me to fantasizing about a world in which I only had to work two days a week.

I started wondering if there were a position with my company that would allow me to work two days a week, for 10 hours a day. I could start my day at 7:00 am, take a brief 15 or 30 minute lunch, and be outta here by 5:30. By working a 20 hour work week, I would still be eligible for benefits.

But could I swing it financially? Right now my biggest expense is the mortgage on my condo. I'm not emotionally attached to the place, so I wouldn't mind renting it out. If I rented it out as a furnished unit, I could easily cover the mortgage, and make a little extra cash as well. Plus I would get all the nice tax deductions that rental property affords. But then where would I live? Craig's List in Seattle is crammed full of rooms-for-rent ads. I found this ad for a $600 room for rent in a beautiful house in a great neighborhood. Not too shabby. I could manage that. So that takes care of housing.

What about my day-to-day expenses? I currently save about 20% of my take-home pay. I did a little math and found that if I save the same percentage of my new (lower) salary, and reduced my monthly discretional spending from $1,500 (my current average) to $1,000 each month, then I would be still be cash flow positive each month. The biggest chunk of that $1,500 is spent on food, which with a little effort, could easily be reduced.

Of course my annual savings dollar amount would drop in half, but I have been a compulsive saver every since I started my career at age 21. And now, at age 37, my retirement savings are in good shape and I have a healthy emergency fund. I think I could swing this.

It's a fun exercise to consider. It is similar to the game you play, "what if you won the lottery." But the game of "could you live on half your salary" is actually an attainable objective. I think of all the wonderful things I could do with a 5-day weekend. How nice it would be...

Dumpster Diving for Chairs

2011-01-09T12:30:00.000-05:00

Yesterday my sister excitedly told me about a set of chairs she saved from being thrown out by a neighbor. This is extremely out of character for my sister who is a bit of a shopaholic and a stickler for quality. But these chairs spoke to her - they are groovy, authentically retro-style swivel chairs that just need to be recovered in a modern fabric to replace the grungy aqua blue vinyl they currently sport. She thought they'd be great in the kids play room.

I was thrilled (and shocked) to hear that she had acquired the chairs. She asked the owners permission, and they were happy to have her take them. The sad part is that my sister's husband is appalled that she salvaged these chairs. I am proud of my sister for standing up for going through with it, despite her husbands disapproval. I mean, the price is right (free!) and once they are recovered, I'm sure her husband won't be embarrassed of them.

How Did I Make $60 in 45 Minutes?

2011-01-07T10:00:00.000-05:00

Get your mind out of the gutter. This is legit. I participated in a focus group today at lunchtime. This is the third focus group that I have attended in the past year. I did a Google search with the terms: focus group seattle, and found about ten companies in this area that conduct focus groups. If they had a web site, I signed up online, but some didn't, so I just gave them a call and asked if I could be added to their database for study group participants. I now regularly receive calls from four companies. They ask screening questions to see if I am eligible for their current studies.

I hit the jackpot with my first focus group last year. It lasted two hours and paid $200! The group met at 6:00 P.M. and they even served us dinner. The second focus group also lasted two hours, and paid $100. They wanted use to give them home broadband advice about how to improve the service. I gave answers about bad customer service, and if you've ever had Comcast, you know what I'm talking about!

I've enjoyed each of the groups I've participated in. It's fun to have somebody asking your opinion and actually listen to your response. And the money doesn't hurt either!

Guest Post: How Good Planning Can Save Your Bankruptcy

2011-01-05T09:52:00.000-05:00

Bankruptcy planning isn’t always the first thing a debtor thinks of—getting rid of debt and starting off anew is often more urgent. But few people realize the importance not just of planning, but planning smartly. Good planning can mean a successful Bankruptcy filing and a more secure financial future. Bad planning, on the other hand, can lead to anything from simple processing delays to fraud accusations that can land you in jail. If you’re not sure how to start planning your bankruptcy, read on for a simple guide.

Explore Your Options.
First, is bankruptcy really your only way out? Surprisingly, for many people, it’s not. Go over your debts and income, preferably with an accountant or bankruptcy lawyer, and see if there are other solutions available. Bankruptcy can have far-reaching consequences and should only be taken as a last resort. Some of the most common bankruptcy alternatives are debt settlement, debt consolidation, and simple self-reorganization of your finances.

Know What’s At Risk.
How much do you stand to lose in a bankruptcy? If you’re filing under Chapter 7, you may lose some of your assets if they’re not listed as exempt under bankruptcy rules. Chapter 13 bankruptcy won’t have the same effects, but may have other drawbacks. Take a look at your current assets and properties, and decide whether you can afford to give them up to clear
up your debt. You can also consider selling them off yourself and paying your creditors outside of bankruptcy.

Consult A Lawyer.
You will need a bankruptcy lawyer to help you along, but nothing’s stopping you from consulting one even before deciding to file. A lawyer can better explain where you stand, what your options are, and what the consequences will be. They can also help you decide whether or not to file
bankruptcy in the first place. Most bankruptcy lawyers offer a free initial consultation, so just look around for recommendations and set a few appointments.

Plan Your Recovery
Bankruptcy planning doesn’t end at your discharge. As previously mentioned, bankruptcy affects you longer than you may think and it’s important to know the implications. For example, how do you plan on rebuilding and maintaining your credit afterwards? If you’re planning to
get a home mortgage afterwards, how long will you have to wait? These are all things you can discuss with your bankruptcy lawyer and plan for before taking that first step.

About the Author
The writer of this article has made his mark by writing on legal issues especially on Filing Bankruptcy procedures in different states. The author regularly writes on bankruptcy related issues like Ohio bankruptcy, Filing Bankruptcy In Ohio, chapter 13 bankruptcy and chapter 7 bankruptcy etc.

Found Money?

2010-12-27T12:37:00.000-05:00

Yesterday a friend of mine excitedly told me she 'found' $280. She was organizing her papers to do her taxes and she found a statement from her brokerage account when she sold a few shares of stock last January 2005. The check for the proceeds was still attached to the statement. Of course, the check had expired, but a quick phone call to her broker resulted in the promise that another check would be sent to her.

What bothered me about this story is that my friend was ecstatic over the 'found money.' She should have been furious at herself for the oversight. In fact, it should be considered lost money given the fact that she lost the opportunity to pay down a debt or to earn interest on the amount.

When I have money owed to me, I jot it down on a little post-it note next to my computer until I receive the funds. I do this for refunds, rebates, personal loans, etc. If I return an item to a store and received a refund slip for my credit card, I put that next to my PC and check my online credit card activity every few days until I see the refund appear. Currently, my little list looks like this:

IRS refund $295
Amex credit $25
Qwest Wireless credit $75
Personal Loans $528
Best Buy rebate $13
Chase Visa cash back reward $100

It doesn't matter how big or little the amount is. If I'm awaiting payment, it goes onto the list. I hope I never let a $280 check slip by unnoticed.

I Asked for a Refund and Got One!

2010-12-23T11:00:00.000-05:00

Two years ago when I moved into my condo, I ordered cable from Comcast. The technician made a site visit to my condo. He hooked up my cable and asked me which cable outlets I wanted to have activated. I have four outlets, but I had no idea at that point where I was going to locate the TV so I chose two of the four outlets to activate. Comcast charged an activation fee for each outlet.

I recently decided to rearrange some furniture in my condo and in the process, I decided to move the television to a different room next to an outlet I had not paid to have activated. So I called Comcast and asked them to activate this new outlet. They quoted a $22 fee and said it required another site visit. The technician arrived and looked into my cable box and informed me that my condo is wired for cable to be all 'on' or all 'off.' So all my outlets were activated. Grrr! He charged me the $22 for his site visit, which I signed off on. So yesterday I wrote a pleasant, terse and to-the-point e-mail to Comcast requesting refund of the $22 fee, and expressing my displeasure with being charged false activation fees two years ago. I was pleasantly surprised when Comcast immediately refunded the $22 fee! Hurrah! Score one for the good guys!

I believe I achieved a quick resolution for the following reasons:

I put my complaint in writing
Instead of just complaining about the issue, I stated what action I wanted them to take ("$22 refund of the site visit fee")
I was professional and unemotional in my e-mail
I thanked them in advance for their prompt attention to the matter
I included my pertinent account information so they could investigate the matter and make a quick decision

The next time you feel you were unjustly charged for something, follow these simple rules for putting your request for a refund in writing. It never hurts to ask!

Take the Pain Out of Brown-Bagging Lunch

2010-12-20T22:39:00.000-05:00

I have lunch with the same group of coworkers every day. It all started when one of the women joined weight watchers and started to bring her lunch. I always had brought my lunch and just ate at my desk. So we starting getting away from the office and eating together. The third coworker had always popped out to pick something up and she would bring it back to her desk. We invited her to eat with us and she felt inspired to start bringing her lunch as well. She brought her lunch two or three times, then fell back into the habit of buying a sandwich or salad then joining us.

I think the reason she didn't stick with it is that she would always prepare her lunch either the night before or in the morning. If you are tired or running late, preparing lunch for the day is the first thing that falls off the list. I have always made a week's worth of lunches on Sunday, and carted everything into the office fridge on Monday morning. Here are my tips on how I make this work for me, a very picky eater:

Most frozen leftover dinners seem to taste funky after I've nuked them in the office microwave. So I make fresh lunches on Sunday that do not need to be frozen to still be good on Friday.
I do not include chicken or beef in the meal, to avoid the funky-by-Friday syndrome. So I stick with beans, tunafish, boiled eggs or nuts to supply the protein.
I don't care for the taste of bread that has been refrigerated, so I never bring a sandwich (picky me). To minimize the time and complexity of preparing lunches on Sunday, I eat foods that require little or no cooking.
Favorite meal #1 is a huge green salad consisting of any combination of protein (see above), artichokes, beets, corn, onions, roasted red peppers, blue cheese or feta, and fresh cracked pepper. I keep bottled balsamic vinaigrette in the office fridge and dress the salad just before lunch.
Favorite meal #2 is couscous. I saute a diced onion and garlic while I prepare 1/2 cup whole wheat couscous. Add navy beans and a combination of raw vegetables (tomato, zucchini, asparagus, etc) then toss in some crumbled feta. You can nuke or eat at room temperature.
Bring some fruit and crackers, and after just a few minutes of preparation on a Sunday evening, you have lunch for 5 days!

Words of Wisdom for Your Simplicity Journey

2010-12-16T12:00:00.000-05:00

If you are considering making a lifestyle change toward a more frugal, simple life and you visit blogs like mine for ideas and inspiration, I have an important tip to make that first step MUCH easier:

Ignore other people's opinions.

This is much harder than it sounds. But you'll get the hang of it. When you go against social norms, friends and family often will not hesitate to provide unsolicited opinions about your choices. Chances are your friends and family simply want what they believe to be in your best interest. The trick is not to dismiss an unsolicited opinion, nor should you argue your point. Simply say, "that's a good point," or "I'll have to take that into consideration." Then happily continue your merry little frugal/simple ways.

This post is inspired by my family's continuing puzzlement over why I haven't acquired all the regular status symbols associated with a successful professional in her mid-thirties. I have no upscale car, no large house full of gorgeous furniture, no flat-screen TV, no walk-in closet full of shoes and purses. Rather I have a 1-bedroom condo furnished in Ikea's finest, a ten-year old TV held together by twist ties, only two purses and less than ten pairs of shoes. When my family waxes philosophical over my life, I have perfected the art of smiling, nodding and saying, "perhaps that's something I'll consider in the future..."

CSN Stores Giveaway

2010-12-13T18:14:00.000-05:00

The recent CSN Stores Giveaway on Seattle Simplicity has been completed. I want to thank everybody who entered. There were over 25 valid entries on my post. The winner has been notified by Email, and will receive a $45 gift certificate good for any purchase at CSN Stores.

I hope that new readers will continue to visit my blog. For those who did not win, I encourage you to check back for new giveaway contests in the future.

How Did I Make $60 in 45 Minutes?

2010-12-06T18:46:00.000-05:00

Get your mind out of the gutter. This is was legit not some sort of payday loans. I participated in a focus group today at lunchtime. This is the third focus group that I have attended in the past year. I did a Google search with the terms: focus group seattle, and found about ten companies in this area that conduct focus groups. If they had a web site, I signed up online, but some didn't, so I just gave them a call and asked if I could be added to their database for study group participants. I now regularly receive calls from four companies. They ask screening questions to see if I am eligible for their current studies.

I hit the jackpot with my first focus group last year. It lasted two hours and paid $200! The group met at 6:00 P.M. and they even served us dinner. The second focus group also lasted two hours, and paid $100. They wanted use to give them home broadband advice about how to improve the service. I gave answers about bad customer service, and if you've ever had Comcast, you know what I'm talking about!

I've enjoyed each of the groups I've participated in. It's fun to have somebody asking your opinion and actually listen to your response. And the money doesn't hurt either!

How I Simplify Retirement Planning

2010-12-04T12:45:00.000-05:00

I am a big fan of Vanguard funds. I was first attracted to their low fees and index-fund approach. As I started researching what kind of asset allocation to use for my IRA, I was thrilled to discover Vanguard target retirement funds. Vanguard has created retirement funds that are comprised of an assortment of their index funds, properly allocated based on your target retirement date. The asset allocation within the fund is adjusted for you as you near your retirement date. You never have to rebalance your money.

If you are interested in learning more about the Vanguard target retirement funds, visit the Vanguard website and review the prospectus.

$45 Giveaway from CSN Stores

2010-11-12T17:02:00.000-05:00

The people at CSN Stores have provided me a $45 gift certificate to give away to one of my lucky blog readers. CSN operates numerous websites that offer a variety of products ranging from shoes, furniture, and cookware to briefcases. I was recently shopping for a suitcase on one of their sites. But to be honest, I haven't gotten around to buying it yet. I would be interested in knowing if any of my readers can share their experiences with CSN Stores.

Anyway, I have decided to hold a random drawing for the gift certificate. You can have up to three chances to win the prize:

1) Any reader can enter by posting a comment below.
2) For an additional entry, web site owners can link to this post, to let other know about this contest.
3) Lastly, my fellow bloggers can add Seattle Simplicity to your blogroll (must be accessible from blog's main page) for one more entry in the drawing.

There is one more step. Since Blogger does not automatically collect contact information, you will need to send me an Email message letting me know that you posted a comment, created a link to my post, and/or added Seattle Simplicity to your blogroll. (My E-mail address is in the sidebar of my blog.)

The drawing is limited to US residents. The certificate will be in the form of a promo code, and does does not cover any shipping costs. The code can be used on any product from any one of the CSN Stores. A winner will be randomly picked from among the qualified entries received by December 10, 2010. I will contact the winner by Email. Good luck to everyone who enters!

Guest Post: 7 Smart Tips On How To Improve Your Credit Score

2010-10-01T09:58:00.000-04:00

Are you having a tough time in procuring loans due to poor credit score? Well, you are not alone. A considerable number of people are entangled in the same web. Though this is a pretty serious problem, it is not impossible to fix it. You might find the following tips useful in case you have wrecked your credit:

Pay off your credit cards: The smartest and quickest way to improve your credit rating is to pay off your credit cards as soon as possible. Creditors are fond of seeing a huge gap between your credit limit and the credit amount you have used. Getting your balances at least 30% of the credit limit on each card can be really helpful. While most authorities on debt opine that it is better to pay off the high rate cards first, a better strategy is to pay off the cards that are closest to your monetary limits.
Use your credit cards lightly: Accruing large balances can be quite injurious to your credit score, irrespective of whether you pay your bills in full every month. What is reported to the credit bureaus and pitched into your credit scores are the balances reported on your last statements. But that definitely does not mean that clearing your balances every month is not a good decision. You can boost your credit score by limiting your balances to 30% (or less) of the cards limit.
Track your limits: your credit score might be apparently lowered if your credit card issuer is showing a lower limit than you actually have. Most credit card issuers will quickly update this information if you request them to do so. But, if it is a policy with your user not to report consumers’ credit limit, then the credit bureaus will use your highest balance on the card as a proxy for your credit limit. An easy solution would simply be to pay off your balance before your statement period ends. It will not give a hike to your reported limit, but it will widen the gap between the credit limit and your closing balance, which should increase your credit score.
Don’t stop using an old card: If you stop using your oldest credit cards, the issuers may stop updating those accounts at the credit bureaus. The account will appear on your credit report anyway. But they will not give any boost to your credit score as your active accounts will do. So, it is always advised that you use your oldest accounts at least once in a few months. But take care not to accrue a large balance and pay off the balance in full when you receive the statement.
Make use of goodwill: If you have been a good customer throughout, then you can request your creditor to simply erase one late payment from your credit history. You need to make the request in writing and your creditor is likely to grant your request. If an account is still open, the creditor might delete the previous delinquencies, provided you make a series of timely payments. And that will help you improve your credit score.
Avoid applying for new credits: As long as you are in the process of credit score repair, try and avoid applying for new credits. New credits will open up possibilities of new defaults and you may end up damaging your credit score even more.
Seek professional help: It is important to manage your debts properly if you want to improve your credit score. And if you are having trouble managing your debts by your own, then you can seek professional help. Go for services credit counseling and get enrolled in programs such as debt settlement, debt consolidation etc to pay off your debts.

So, it’s explicit that improving your credit score is not that difficult. All you need is some financial discipline. But remember, your score was not spoiled overnight. So, do not expect your credit score to get repaired overnight. Be patient and be regular with your payments and your credit score is sure to improve over time.

About the Author
This guest post was written by "David Brown". If you are interested in writing a guest post, please contact Seattle Simplicity at the Email address listed in the sidebar.

Guest Post: 10 Ways to Save $100

2010-09-20T09:42:00.000-04:00

With more and more people living paycheck to paycheck it’s more important than ever to have some money saved for emergencies. But while you are living this way, it may seem impossible to put away any extra funds. However, by making just a few small changes in your lifestyle, you can really see the money saved add up. In fact, if you adhere to any of the following ten steps you will soon find yourself with an extra $100.

If you find yourself spending too much each month on electricity costs, call your utility company and ask for a home energy audit. This audit will help you find spots in your home where you are wasting money on energy. For example, be sure you have a good seal around doors and windows to avoid drafts. Another tip is running appliances such as the dishwasher at night. Taking this one step alone can cut a utility bill by 40%. A utility company might also be able to point out energy vampires living in your home. These are items such as computer monitors, televisions, or microwaves with a clock display which continue to use power even when in standby mode. To fight these vampires, unplug the appliances or look for those that use the least amount of standby power.

Another easy way to save over $100 a year is to cancel your PMI insurance. Many times this insurance is a requirement when a home is purchased with less than a 20% down payment. However, once you have 20% equity, either in a down payment or paying over time, you may be able to cancel the PMI insurance. Typically, these policies cost over $50 per month, potentially saving you $600 a year.

Consider participating in your company’s flexible spending account. This is pre-tax money taken out of your check each pay period to pay for unreimbursed medical expenses. If you don’t use it you will lose it, but if you are in the 28% tax bracket and allocate $500 to your flexible spending account, you can reduce your taxes by over $100.

If you drive a car, try calling your insurance company to reduce your rates. Even raising the collision deductable from $200 to $500 could potentially reduce your coverage costs by 15-30%. This is an especially good step to take if you drive an older car and don’t need quite as much coverage. In addition, look for any discount offered including good driver, seat belts, air bags, anti-theft and annual mileage below 10,000 miles.

You can also save money on your weekly trips to the grocery store. By cutting back on buying things as soda and chips, you can potentially save over $200 per year.

In addition, buy in bulk. Items such as paper towels and toilet paper never spoil and you can stock up at one time potentially saving over $100 a year more than if you bought a pack every time you visit the supermarket.

Clipping coupons can also save hundreds of dollars each year. Nowadays, you don’t even have to wait for the Sunday paper to come out. Coupons are available on many online sites and even individual stores will post coupons for their most loyal customers. In addition, many online coupons offer higher savings than those found in the paper.

Regular car maintenance can eat up a chunk of change every time you take your car in for an oil change. If you learn how to do this yourself, you can save about $30 every time you change your oil resulting in saving of about $100 every year.

If you like movies or books, consider getting both of them from the library instead of the bookstore and movie rental spot. The library is free and has a wide selection. With the cost of going to a movie these days, you can save substantial money over a year.

Finally, if you can’t get your morning started without a cup of coffee, it is much cheaper to brew your own rather than stopping by Starbucks. Even if you purchase a bag of coffee beans costing $10, after just six cups you’ll start to save the money you would have spent at your local coffee shop.

About the Author
This is a guest post from Genuwave LLC. Some of their blogs include topics on Personal Finance and Selling Time Share. If you are interested in writing a guest post, please contact Seattle Simplicity at the Email address listed in the sidebar.

Guest Post: Exemptions Under Chapter 7 Bankruptcy

2010-09-10T09:58:00.000-04:00

The debtor has to sell his entire non-exempt property to pay off his unsecured debt if he is planning to file bankruptcy under Chapter 7.

The debtor has to go to the local Federal Bankruptcy court and file a petition if you are thinking of filing bankruptcy. The process of filing bankruptcy includes a complete statement of the owed amount and assets. The bankruptcy petition would be dismissed if a filer misrepresents or fails to include his assets while considering Chapter 7.

An "automatic stay" is placed as soon as the petition is filed.
The creditors are not allowed to collect the debt with the enforcement of the automatic stay order. If they want to collect the debt then they have to persuade the court that with the affect of the automatic stay their interest would be hampered.

The trustee appointed by the bankruptcy judge would liquidate the debtor’s nonexempt property and the amount would be distributed among the creditor as per the Bankruptcy Code. The debtor gets discharge from the piling burden of debt but he loses control over his nonexempt property.

Chapter 7 has certain exemptions:

Things that are exempted from liquidation:
1) Unemployment insurance
2) Pensions and IRAs Plans
3) Alimony and child support
4) House Equity less than $ 17,425
5) Things used for personal purpose up to $9,300
6) Ornaments and attires
7) Public benefits as well as conveyance

With these exemptions there are few additional exemptions that the federal law offers known as wild card exemption.

Wild card exemption includes:

Nonexempt property: There would be an exemption up to $11,200 on the taxable property as per the total amount of the wild card exemption. The debtor can save his taxable property up to the total amount of the wild card exemption if he has any intention to use the wild card exemption.
Partial exemption of property: Under the Federal law the property is exempted to a stipulated amount. Under the wild card exemption the property that has not been exempted this portion can be excused and the debtors are obliged to regain control over his property.
Discharge of Cash: The cash and bank funds can be discharged with the help of wild card exemption.

Changes in the Chapter 7 proceedings with the introduction of new law:
Before the introduction of the new law the debtor could file for bankruptcy at any time. But now if the debtor is filing under personal bankruptcy for instance chapter 7 then you need to under go credit counseling session within 6 months of filing.

Initially the bankruptcy court used to decide whether you qualify for a Chapter 7 bankruptcy or not. But now with the implementation of the new law you are liable to qualify for a Chapter 7 bankruptcy that would be decided by two-part Means Test.

If you fail to qualify for the Means Test then the debtor is left with no choice other than to file for Chapter 13 and repay his debts.

In 6 years the debtor could file for another chapter 7 before the implementation of new law. The new bankruptcy law would prolong the period from 6 to 8 years between filing Chapter 7's.

Author bio:
This is a guest post by Kevin Craig who is a financial writer. He has helped lots of debt burdened people with free counseling and advices on many finance related topics. If you are interested in writing a guest post, please contact Seattle Simplicity at the Email address listed in the sidebar.

Disclaimer: The information provided here is not meant as tax or bankruptcy advice. I encourages readers to consult with a bankruptcy attorney or financial adviser if they have specific questions about bankruptcy.

Guest Post: Tips to Erase Credit Card Debt

2010-08-31T09:59:00.000-04:00

Shopping with the plastic money has become a fashion statement for the youngsters. As money is limited in our hand it does not give a scope of carefree shopping. But when we have the card in the wallet our expectation rises and there is no restriction while buying. In this way our expenses increase and we fall into the trap of debt. This article would share some useful tips in order to eliminate the credit card debt.

Prepare a budget: Make a budget and try to follow it in this way you can control your expenses. Your first task would be to pay off your debts and then create a budget. In order to avoid similar situation you need to redesign your lifestyle. Control your expenses if you find that your expenditure is increasing than your income then you might face trouble. In order to save yourself from the trap of debt prepare a budget and secure you financial future.

Creditor negotiation: Negotiate with the creditor on the outstanding balance as well as on the interest rate. The creditors would be willing to negotiate with you only if you have a valid reason why you have been a defaulter. If he still does not agree to negotiate on your terms then you can threaten him of filing bankruptcy. If the negotiation is mutually beneficial then the creditor would be willing to reduce the outstanding balance including the interest rate and you would get a profitable deal.

Only minimum payment should be avoided: Try to make a monthly payment so that you do not incur debt. It would not be a smart move to make a payment of minimum amount per month. Only paying the minimum amount is going to prolong the period to pay off your debt. If you are inclined to pay off the outstanding balance then start saving money and get rid of debt.

Borrow from a 401(k) plan: You can take loan against the 401(k) plan. But the interest rate that is charged on the loan is 2 points above the average. The credit card interest rate is high compared to this loan. So pay off the card loan and then pay off the borrowed amount from the plan.
It would come under taxable bill along with a penalty charge if you fail to pay back the amount. Consider to settle your loan before you plan to change your job.

Use cash instead of credit card: If you use credit card then you cannot avoid incurring more debt. If you have piling debts then make it a point to avoid using the credit card unless and until you pay off your existing debt. Use cash instead of your plastic money while you go for shopping. Credit card instigates you to spend more than you can afford. So be attentive while you think of using your credit card.

So these are few following ways that would help you to erase your debts and help you to get a financially sound future.

About the Author
This is a guest post by Kevin Craig who is a financial writer. He has helped lots of debt burdened people with free counseling and advices on many finance related topics. If you are interested in writing a guest post, please contact Seattle Simplicity at the Email address listed in the sidebar.

Diapers.com Coupon

2009-08-13T12:15:00.000-04:00

A reader who recently had a baby sent me an Email about how to save money on diapers. She mentioned saving $10 when buying diapers from Diapers.com. She used a promotional discount coupon code: drybb.

The promo code (drybb) gives you $10 off of your first order from Diapers.com. In addition, they offer free shipping with a purchase of $49 or more. Although they are best known for diapers, Diapers.com also sells other baby products such as clothes, wipes, books, toys, strollers, car seats, etc. Diapers.com’s is known for fast shipping. Based on what other people have said, delivery usually takes about 1-2 days. In some cases orders are delivered in less than 24 hours.

Anyway, I thought that I would pass along this information to my blog readers in hopes that it can save you some money. If readers know of other helpful discount codes, please let me know.

Get a Free Jones Soda

2009-07-07T16:01:00.000-04:00

I received an Email from the people at Jones Soda saying that they will offer a free soda to every "Seattleite" who visits their headquarters on Friday, July 10th. The hours for this promotion (which they are touting as a party) are from 8 am to 5 pm. The company is located at 234 Ninth Ave. N in Seattle. For the locals around here, that is in the South Lake Union area, not far from the Space Needle at Seattle Center.

For more information about this event, visit the Jones Soda website. If you know of any coupon codes or other special deals that readers might be interested in, please contact me at the Email address listed in the sidebar.

Guest Post: Planning on an Early Retirement despite the Terrible Economy

2009-02-18T11:55:00.000-05:00

For anyone who makes it to the ripe age of 65, you should be able to expect a retirement full of relaxation, enjoyment, and stress free living. At least, that's how it used to be. Retirement now brings with it a whole lot of additional considerations, such as: can you afford to retire?, are my investments safe?, will the government continue to support me?, what if I run out of money?, what state is my 401K in?

Unfortunately, given the financial pressures being faced these days, the truthful answers to most of these questions may not be as reassuring as they used to be. The first two question above can almost never be answered with a reasonable amount of certainty. The following 3 questions do present real risks if you were to retire too early. So, if you are approaching the "traditional" retirement age of 65, how do you actually reach a decent decision or make the "correct" choice. Furthermore, if you were previously considering an early retirement, is this still on the cards, or is it impossible?

There really is no way I could answer these questions for you. Every person always has a unique financial situation, and hence these types of things need to be analyzed on a case by case basis. What I can do instead is give you some valuable advice on how to reach a decision yourself. You don't need a financial advisor to make this decision for you! Instead, follow the 3 steps below, and you'll be well on your way to a successful outcome.

1. Look at the Big Picture:
Sit down one weekend by yourself, or with your partner, and bring out that ring binder. It's time to sort out all of your finances - and I mean EVERYTHING. There is no point in continuing with your retirement planning unless you know your exact financial position and cash / asset reserves. Think of it like a corporation. They need their yearly financial statements to help them direct their decisions for the year ahead. Companies who make decision blindly run the risk of choosing the wrong path - and this is easily what could happen to you.

2. Be Realistic About Your Living Costs:
It's now time to work out how much it costs you to live each week. Whilst you have those ring binders out, calculate your expenses for the previous 2 years. This should include expenses from all categories. Make it look pretty if you wish, but more importantly, come up with a total figure. Now, add $10,000 to that (to account for unexpected expenses that you could have faced in the last 2 years), and divide the total by 104. The resulting figure is how much you will need PER WEEK throughout your retirement.

3. The Final Calculation:
Now, take your total net worth, including all the items you accounted for in step one, and divide this by the weekly requirement in step 2. This will tell you how many weeks you can currently afford to retire for! Clever isn't it. Of course, this is very much an estimate - there will be many other things you need to consider - but as I said, case by case.

Can you retire early? Well, your definitely on the way to being able to work that out for yourself.

About the Author
Andrew Wang lives in Seattle area. He writes about Travel Reward Credit Card & International Travel Medical Insurance. If you are interested in writing a guest post, please contact Seattle Simplicity at the Email address listed in the sidebar.

Debt Relief Solutions

2008-08-09T09:57:00.000-04:00

Plenty of consumers are currently facing a crisis with the debt they acquired before the recession took hold of the American economy. By now we're all too familiar with the much-discussed collapse of home values and the seemingly limitless supply of foreclosures that continue to flood the market. But the national problem with unsecured debt, typically in the form of high-interest credit card debt, threatens to become an issue of comparable significance as consumers scramble to find an appropriate solution. If this situation describes the task you now face, then take heart. The good news is that there are solutions available, and that there is one that is likely to suit your circumstances better than the others. Each has its own set of benefits and shortcomings, and it is imperative for the consumer to collect enough information to make the proper choice of a solution. Sadly, many consumers have compounded their financial predicaments by choosing a solution that was a poor fit for their particular situation. Before you move forward with any solution, make sure that you understand the options you have and why it is that the one you choose makes the most sense for you.

There are 5 main categories of debt relief solutions from which to choose. They are listed here in the order of the severity of the debt problem, from the least severe to the most:

Thrift and Discipline - reduce expenses where possible and try to increase income. This solution may be sufficient in and of itself for less severe debt problems, and it can also be used in conjunction with the other 4 solutions to enhance their effectiveness.

Debt Consolidation - do a cash-out refinance of your home or take out a HELOC to pay off the high-interest debt. Unfortunately this solution is very difficult to implement due to the loss of equity most homeowners have experienced. Tight lending guidelines now predominate in the lending industry.

Credit Counseling - also known as debt management, consumers can enroll in a debt management plan (DMP) to reduce interest rates, stop over-limit and late fees, have a consolidated monthly payment, get relief from collection phone calls, and become debt-free in 5 years or less.

Debt Settlement - also reduce their debt amount. There has been a high level of consumer complaints, however, as there are major shortcomings that can jeopardize the success of the program.

Bankruptcy - a "fresh start" Chapter 7 or a Chapter 13 repayment plan are available, but a new 2-part "means test" for Chapter 7 that was instituted in 2005 effectively disqualifies many filers and forces them into Chapter 13 instead. The consequences for the consumer's credit are severe, lasting from 7 to 10 years.

Thrift and discipline are typically sufficient remedies for those with relatively minor financial problems. Debt consolidation is a risky proposition if it can even be done, due primarily to the exchanging of unsecured debt for secured debt. In doing so, the consumer places his home at risk, not just his credit. Credit counseling offers a broad range of benefits for those plagued by high interest rates, and a significant advantage it holds over debt settlement and bankruptcy is the fact that the consumer's credit score is unaffected by enrollment in a DMP. Debt settlement is a riskier proposition that has the potential to offer greater benefits than credit counseling, but at a cost: significant credit score damage and a more stressful consumer experience. Bankruptcy is usually the option of last resort, and the credit damage that results makes it an extremely difficult choice.

Review of NationalPayday.com

2007-11-09T18:01:00.000-05:00

Payday loans fill an important void that is not served by traditional banks. In a perfect world, everyone would be on top of his or her finances, and there wouldn't be a need for payday lenders. But in reality, most of us have gotten behind on bills at some point.

National Payday offers cash advance loans based on your next paycheck. A payday loan is something to consider if you find yourself in a short-term bind and in need of money. As an example, if you have been shopping for one too many "bargains", and can't make your credit card payment, a payday loan may help you out. Applying for a payday loan is simple, and takes only a few minutes to complete. Most loans are approved within 24 hours.

National Payday has a FAQ that explains how to apply for a loan. A checking account and a steady job are the requirements to apply. To explain how the loan works, suppose you were to borrow $300 from the payday lender. The lender then transfers this money to your checking account, and expects you to pay this amount plus a 25% fee ($75 on a $300 loan) when you receive your next paycheck.

I advise borrowers to read National Payday's disclosure information before applying for a loan. The effective annual percentage rate (APR) on the loan can be several hundred percent, depending on the situation. If used correctly, a payday loan can help tide you over to the next payday.

This post is sponsored by National Payday.

April Net Worth $466,959 (up $7,955)

2006-04-03T13:49:00.000-04:00

My April has a strong showing at $466,959, up nearly $8,000 over March. Most notable are investment gains in my IRA and 401(k) accounts. I also had additional stock options vest which resulted in nice gains there.

Does Condo Living = Simple Living?

2006-03-28T14:09:00.000-05:00

Last night during our annual condo association homeowners meeting, I chose to end my two-year term as president of the board of directors. I had an urge to continue because I have strong opinions on how I want the place to be run. But I decided that it's good to let other homeowners participate in the work it takes to operate the condo. Plus it will be a nice break from the responsibilities.

It got me to thinking whether living in a condo is truly simpler than living in a house. I owned a house prior to buying the condo, so I have a perspective on both sides of the equation. When I owned my house (all 650 sq. ft. of it) I was completely overwhelmed with the yard maintenance and exterior maintenance of the place. Something always needed to be attended to whether it was edging the yard, mowing the lawn, painting the retaining wall, weeding the garden, replacing the porch light, roto-rooting the sewer line, and so on. Initially I tried to do most everything myself (except the sewer line issue) then I gradually started hiring out some of the work. But over time I always wound up canceling the workmen because I couldn't stand spending money on something I knew perfectly well I could do myself. So I cancelled the yard guy and I stopped using a handy man. The only thing I would hire out was plumbing work. I felt like I was saving a ton of money, but I also felt the weight of a growing to-do list.

When I first moved into my condo I was giddy with the prospect that everything would be handled for me. I could just pick up the phone and report a burned out hallway light or a broken yard sprinkler and the maintenance men would show up and fix all the problems. In reality that did happen, but I find myself unhappy with the quality of work or the speed in which tasks get resolved. Also, I'm paying a healthy chunk of homeowners dues which is a non-negotiable expense. When you own your own house, you can choose whether to have a yard service handle the lawn one month, and do it yourself the next. That isn't an option in a condo. In addition, my condo has an elevator and a garage door that both require regular maintenance to operate properly. It's amazingly expensive. It is also an adjustment to have decision by committee, and to not be able to maintain the property exactly the way you personally see fit.

My 20-20 hindsight is crystal clear on this issue. I preferred the flexibility as a single-family home owner to hire out home maintenance tasks at my discretion. I didn't realize at the time that it's much more cost effective to hire out home maintenance for a house than to contribute monthly home owners dues for a condo, at least a condo that aspires to having a healthy reserve fund as mine does. This doesn't mean I'm going to sell my condo and run out and buy a single-family home. But I'm certainly more aware of the tradeoffs of both living situations now.

My condo living situation is certainly simpler based solely on the fact that our management company handles the maintenance issues that arise, and it will be even more simple now that I am not an active participant on the board of directors. But a single-family homeowner can create the same situation by investing time to identify good service providers to handle regular maintenance issues.

Free Trial of MS Money Not Up To Snuff

2006-02-27T11:59:00.000-05:00

This weekend I downloaded the 90-day trial version of Microsoft Money 2006 Deluxe. I spent about three hours uploading my financial information and meticulously categorizing my expenses. I had MS Money pull my credit card and banking information directly from my online accounts. After tinkering around with it for a few hours, I deduced that I strongly prefer my manual method of tracking income, expenses and net worth in Excel. It is much easier to do what-if scenarios, and it takes much less time. It also makes me feel much more 'in touch' with my money. I felt that Microsoft Money was overly complex, and not as intiuitive as I had expected it to be. I was a little disappointed with this finding. I guess I expected more from Microsoft. I suppose it might be a good tool for somebody who has a business, but for personal finance tracking, it isn't the solution for me.

Location, Location, Location

2006-02-22T16:21:00.000-05:00

People often tell me how lucky I am to live in such a fantastic neighborhood. I live in easy walking distance of:

four grocery stores

the public library

a post office

two dozen or so great restaurants

three neighborhood pubs

four coffee shops

a fun variety of retail shops

a dry cleaner

two fantastic parks

a beautiful lake

in easy bicycling distance of my office

When people comment on where I live, the conversation usually goes something like this:

Them: "You are so lucky to live in this awesome neighborhood!"

Me: "I agree that it is a fantastic neighborhood. But I am not lucky to live here. I chose to live here."

Them: "I could never afford to buy a house in this neighborhood."

Me: "Sure you can! It just wouldn't be as big as your current one."

Them: "But I couldn't live without my...(fill in the blank)...walk in closet, double garage, jacuzzi tub, four bedroom house, etc."

At that point I change the topic because folks like that can't imagine giving up a material possession or home amenity in exchange for the increased quality of life that a neighborhood community offers. I wouldn't trade my tiny one-bedroom condo in a fantastic neighborhood for a huge, hulking house in the strip-mall suburbs for ANYTHING!

Free Personal Finance Tools

2006-02-20T17:27:00.000-05:00

If you are a Microsoft office user (e.g. Word, Excel) you might want to check out the free personal finance templates offered on their web site. Available templates include budgeting templates, calculators for 401k planning, investment calculators and mortgage amortization/analysis templates.

My personal favorite is the lifetime savings calculator which allows you to calculate the lifetime savings of switching to a generic version of a particular product. It's simple math to do without a fancy Excel calculator, but it sure is fun to see how much you can save!

I Think I Found Mr. Uber-Frugal!

2006-02-19T15:57:00.000-05:00

Months and months ago, I heard about a guy who made a New Year's resolution to spend money only on bare necessities for one year. Thanks to NYC Money, I think I have found him. It looks like he is the boyfriend of author Judith Levine who wrote Not Buying It, My Year Without Shopping. I am number nine on the hold list at the Seattle Public Library. I am so enthralled by this topic, I can hardly wait to read the book.

The practice of voluntary simplicity was born of the idea that American consumerism traps us in the enless cycle of the rat race. Judith Levine writes of her 12-month experience of voluntary simplicity. Once I read the book, I will report back to share my thoughts.

Why My Heating Bills Never Exceed $40 a Month

2006-02-14T12:35:00.000-05:00

This morning in Seattle, I awoke to a snowy winter wonderland, something that doesn't happen very often. There is a lot of pain this time of year due to soaring home heating costs. But in the two years that I've owned my condo, my monthly heating costs have never exceeded $40. I keep my thermostat at a reasonable setting in the winter - about 65 degrees, so I'm not sitting around bundled in a down jacket with my teeth chattering just to save a little money.

The secret to my low monthly heating bills is the fact that I live in a condo that is built to energy star standards which are strict energy efficiency guidelines set by the EPA. Based on my winter heating bills, energy star works! Plus it's good for the environment because I'm using less energy to heat my home since it is so well insulated, and therefore I'm saving money. Over a period of years, this will have a significant payback period.

Festival of Frugality is Up!

2006-02-14T12:12:00.000-05:00

Jane at Boston Gal's Open Wallet did a fantastic job hosting this week's Festival of Frugality with a Valentine's Day spin. Be sure to check it out!

Small Home = $15 Carpet Cleaning

2006-02-12T20:17:00.000-05:00

Just another side benefit to living small is the fact that I can handle certain home maintenance projects myself instead of hiring them out. Today I decided to clean my carpets. The last time I cleaned my carpets I rented a machine at Home Depot for $14. Recently I noticed that the drug store at the end of my street offers carpet cleaning machines for $15. I went for this option to save the hassle of the rental department at Home Depot on a crazy Sunday.

The cleaning went very smoothly, and I had the entire project completed in about an hour. That includes renting the machine, completing the cleaning and returning the machine. My boyfriend, who just purchased a ridiculously huge 4-bedroom house, just paid $300 to have his carpets cleaned by professionals. Normally he would do something like that himself, but it was an overwhelming chore given the size of his new home. Of course you could clean your own carpets if you own a large house, but it becomes a much more onerous task.

So whenever I see someone's showcase home that causes me to think how nice it would be to have a guest room...back yard...utility room...basement...yadda yadda...I just remind myself of the little benefits of living small like being able to clean my carpet in one hour for just $15.

I Threatened to Cancel - They Paid Me $$

2006-02-10T12:14:00.000-05:00

Last week I wrote about saving big bucks on my auto insurance and cell phone bill. Yesterday I decided it was time to cancel one of my two credit cards. I currently have a Chase Rewards Visa and a Cash Back American Express card. Because Visa is accepted more places than Amex (especially overseas, which I travel to occasionally) I decided to cancel the Amex.

When I called Amex to cancel, they offered a couple of incentives to entice me to stay. Currently, I am required to carry a balance on the card (which I never do) to obtain the maximum cash back allowance. They permanently waived that requirement. In addition they offered a $25 one time credit to my account. I accepted the deal. Later when I have the time, I'll compare the cash back incentives for both cards, but in the mean time I'll enjoy the $25 credit!

Close Call with Paypal Thief

2006-02-09T10:26:00.000-05:00

This morning I logged into my email to find a very alarming message. It was from Paypal and it was confirmation of payment for a pink Razor cell phone for $239.95. I did NOT make this purchase so I quickly scanned the email for all signs of a fake and saw that it was sent by a valid paypal email address and the entire format of the email matched what I had always received from Paypal. So I clicked on the "Dispute Transaction" link and got the paypal login screen. I logged in and got another screen that asked for my personal contact information as well as my debit card number. RED FLAG! I looked at the URL and saw that it was not a Paypal URL, but something else. So I opened another browser window and immediately logged into my real paypal account, deleted my credit card and banking information, then I closed the entire account, because I had just provided the thief with my login information. Luckily, I was smart enough not to enter my debit card info into the fraudulent URL screen. I forwarded the fake paypal email to spoof@paypal.com. I hope they catch this evil-doer.

I certainly learned a lesson in all this. When I received the email, I should have logged into Paypal separately to see if any transactions had taken place. That would have confirmed that the email was a fake. I hope nobody else falls prey to this scam.

Chronic Minimalism

2006-02-08T13:47:00.000-05:00

My penchant for eliminating material clutter from my life spills over into my worklife. I work at a large corporation and reside from 8:00 - 5:00 each weekday in a standard-issue cubicle. I keep my office workspace extremely clutter-free. I don't have any files on my desk, nor do I have any personal photos displayed. I have my computer, telephone and a very nice plant, a jar of handcream and a stapler. Oh, and I have a calendar posted. That's about it.

A while back, the company was doing a 'restack' of employees. They shifted people around so workteams could sit closer together. I didn't have to move my desk, but I had several new people moved into adjacent cubicles. Not long after that occurred, I went on a two week vacation. When I returned, it was apparent that my new neighbors had assumed my cubicle was vacant, which is perfectly understandable given the minimalist state in which I left it. Somebody had swiped the keyboard from my computer; somebody else had helped themselves to my lovely plant. I had boxes of discarded files piled onto my desk, and boxes of trash stored underneath. I thought it was hilarious! Of course they thought the office was empty - I didn't leave the tiniest clue that a real person occupied the space.

I piled all of the boxes and garbage into the hallway, ordered a replacement keyboard from the IT department, and posted a sign on my computer that says, "THIS OFFICE IS OCCUPIED."

Sadly, I never recovered my little plant. I now do without...

Are Real Estate Agents Worth Their Large Fees?

2006-02-06T17:41:00.000-05:00

My boyfriend recently sold his house and purchased a new one. He used an agent to sell his old house and had a horrible experience. My boyfriend was so dismayed with the service he received from her that he chose to purchase his next home as a FSBO, and to leave the agents completely out of it. He found his dream house listed on Craig's List. He made an offer and it was accepted. The entire process went completely smoothly, and for the life of him, he can't figure out what why real estate commissions are so dang high.

Two Seattle-based companies, Redfin and Progressive, were profiled in this weekend's Seattle Times article. Both companies are breaking the 6% commission mold. I certainly hope this is a trend that will continue.

February Net Worth $439,835 (up $38,701)

2006-02-01T16:26:00.000-05:00

I wrapped up January with nearly $440,000 in net worth. This month's $38,701 net worth improvement was driven by the following factors:

Revised condo valuation from $285,000 to $310,000
Increase in IRA value of $10,000
Increase in 401k value of $4,000

Because the new condo valuation is a one-time event, I expect my monthly net worth growth to settle down to approximately $5,000 to $8,000 per month going forward.

Detailed discussion on net worth items

I revised my condo value from $285,000 to $310,000 using HomeValueBot.com. This added $25,000 to my net worth. When I ran the numbers on the HomeValueBot web site, they actually came out higher, but I decided to be conservative and stick with $310,000.

The increase in IRA value of $10,000 is a combination of investment gains, a $4,000 contribution for 2006 plus an additional $1,000 contribution for 2005 since I hadn't fully funded for last year.

A new brokerage line item appears this month. I have transferred funds from my money market into this account, which is invested in an assortment of Vanguard index funds.

My stock options are doing quite well, resulting in a gain of $1,492 over last month. However, I made the decision to cash out some of my ESPP to fund my IRA, so I missed out on some of those gains.

Important personal finance issues for the months ahead

Pay down mortgage. One of my objectives for 2006 is to contribute $10,000 toward extra principle payments. I discovered that my mortgage lender, Countrywide, doesn't make it easy to make an extra payment online. I waited until too late in January to make an extra payment, so I will look to begin the extra payments this month.
Reestablish ESPP contributions. My company stock is fairly volatile, and I got nervous and discontinued my monthly contributions. I plan to resume contributions in late February or early March after I've decided how much I want to contribute (my company allows 15% of base pay) based on the risk of the stock falling.

My Favorite Quote

2006-01-27T19:23:00.000-05:00

I have a favorite quote that is credited to Mohandas Gandhi.

"Be the change that you want to see in the world."

It is an eloquent way of telling you to take action rather than complaining; put your money where your mouth is; lead by example; pave the way for others. I love this quote.

Mod Mod Homes

2006-01-26T15:25:00.000-05:00

Today's Wall Street Journal has an article on mod(ern) mod(ular) homes. I considered building a modular home a few years ago now that American architects are entering the market with high-tech, quality construction solutions for less than half the cost of constructing a home going the traditional route. I eventually decided against it since the prefab industry is in its infancy, and there are very few options available commercially at this time. But it is an exciting industry that takes into account green building, sustainable living and cost-effective building methods. The article references a web site that links to all the architects developing mod mod buildings: Some Assembly Required. At this time, the web site appears to be unavailable, probably due to the WSJ readers trying to view the page.

Save Big Bucks on Recurring Expenses

2006-01-25T13:29:00.000-05:00

Auto Insurance
Last week I decided to spend 30 minutes getting competitive bids for auto insurance. I started by having my current coverages in front of me so I could make an apples-to-apples comparison. Then I went to the websites of several major insurers and obtained online quotes. By the end of the exercise, I found a large reputable company who beat my current annual rate by $250. Kind of a no-brainer.

Cell Phone
I called my cell phone provider and they informed me that I was eligible to renew my contract. They offer a $75 bill credit for a one-year contract renewal, and a $150 bill credit for a two-year contract renewal.

Call around and see what found money is waiting out there for you!

Girl, Interrupted

2006-01-24T13:34:00.000-05:00

I hate call waiting. Actually, I take that back. I don't hate call waiting, I hate that there is no call waiting etiquette in our society. I'm always amazed when on the phone I'll get interrupted in mid-sentence by someone who says, "hang on, I've got a call" and they immediately click over to see if there's someone more interesting on the other line. Grrr! I miss the good old days of answering machines and busy signals.

Living Small

2006-01-23T16:16:00.000-05:00

A friend of mine is in the process of selling his house and buying a new one. Last night I was helping him pack and he couldn't believe all the stuff he was pulling out of his cupboards and putting into boxes. He has owned his three-bedroom house for six years and as is the case with many people, his possessions grew to fill the space. I went with him shop for houses, and anytime we looked at a house built in the 1920's, he always commented with disbelief that people actually raised families in those tiny places with no closet space.

I read about a college student who conducted a study of her own possessions. She counted every possession that she owned and classified it based on how often it was used. The result was shocking - something like she used less than 2% of her possessions on a daily basis. How much of your stuff do you use on a daily basis?

In my simplicity journey, I have chosen to live in a small one-bedroom condo. I have combed through my possessions and ruthlessly discarded, sold, or donated items. As a result, I have plenty of storage / cupboard / closet space. Plus I can always find what I'm looking for. More than one person has made statements about my living situation like, "Surely you don't intend to live in a condo forever. Don't you want a house someday?" Sure it would be nice to live in a larger house, but I don't feel the need to. I am resisting the urge to upgrade in exchange for a small, simple living space.

Small living is the means to an end for me - it helps me to minimize material clutter and it is cheaper than owning a larger space. Live small.

Money-Saving Tip for Online Shoppers

2006-01-20T17:51:00.000-05:00

If you shop for clothes online, keep the packing slip that comes with your order. Check the price of the items every week or so after you receive the order. If the item goes on sale, many companies will credit the difference back to your credit card if it's within 30 or 45 days. This works for brick and mortar retailers as well, but it's easier to do with online shops. I asked for and received a $30 credit today from Lands' End for a sweater I purchased two weeks ago!

Why I Happily Paid an Erroneous $20 Library Fee

2006-01-20T14:31:00.000-05:00

I am a enthusiastic user of my local public library. I am fortunate to live 3 blocks from the library. Actually, I shouldn't say that I'm fortunate to live close to a library - I live close to a library by design. It was one of my neighborhood requirements when considering where to live when I was in the market for a new home.

I especially like checking movies out from the library. I can keep it for two weeks before it is due back, which eliminates the time pressure so I can watch it at my leisure. Plus it give me time to watch the director's voice-over version as well. Before Christmas I checked out the DVD The Usual Suspects. I watched the movie and returned it a few days later at my local branch. The following week I received an e-mail from the library stating that I hadn't returned the movie. I dropped by the branch to let them know that I did indeed return it in, and they said they'd put it on a 45-day watch list. If it turns up within 45 days, then I do not have to pay a late fee. If not, then I'll be charged a replacement fee for the video. Well 45 came and went and the movie was not found. So last week I paid a $20 replacement fee. I did not argue with them, or plead my case. I understand that it was simple human error. These things happen occasionally.

I gain so much benefit from using the library. I've saved hundreds of dollars by avoiding movie rental fees and for books that I never have to purchase. When my young nieces are visiting, I stock my house with children's books and videos from the library. I also check out children's stories on CD or tape that I play in the car when driving around town. They love it.

So I don't mind that $20 fee that I paid. I think of it as a small donation to my local library.

Simplify Home Cooking: Create Two Recipe Files

2006-01-17T13:10:00.000-05:00

An easy and common way to be frugal is to cook more at home and to eat out less. Over the years, I've collected a thick stack of recipes from newspapers and magazines that I keep in a manila folder next to my cookbooks. I never bothered to categorize the recipes because so many of them fall into multiple categories (is it a soup or stew or entree? Gaa!). So the traditional way of organizing recipes just doesn't work for me. Plus I kind of enjoy flipping through the recipes when I'm looking for a specific one. I get ideas for meals that I've completely forgotten about.

I stumbled across a great tip that has made searching for recipes in my ever-growing folder much easier. I have divided the recipes between two folders: one for recipes I've tried and decided were keepers, and another for recipes I want to try. I can find recipes much quicker, and I still get to enjoy sifting through a stack!

Ten Years Ago I Was Visited by a Simplicity Angel

2006-01-12T20:12:00.000-05:00

That sounds crazy, doesn't it? But it really happened. I was sitting at my desk at work in Seattle and had just been notified a few days earlier that I was being transferred to a job out of state. I was very disappointed because I had fallen in love with the Pacific Northwest.

So there I was at work, minding my own business when a stranger stopped by and introduced himself. He was a vendor waiting to visit a colleague of mine who was on the telephone. The stranger was a gifted people-person and he cordially made polite small talk while he waited for my colleague to become available. But that small talk quickly led to a profound piece of advice that I still remember to this day.

Since we had never met before, he asked how long I had worked there and I told him about my upcoming transfer out of state. He quizzed me on how I felt about the move and I shared with him how much I loved the Seattle area. At that point, he said...(dramatic, soap opera pause of expectation)

"There are three things we must figure out in order to live our best lives.
One: Where we want to live.
Two: What we want to do for a living.
Three: Who we want to be with.
When you've figured out those three things, you'll be happy."

And honestly, at that moment he bid a polite farewell and left. I was left speechless. It was as if he reached into my soul and knew exactly what to say to me. It really IS that beautifully simple. Three little things. Amazing. I loved having it all boiled down to three little things. He struck a chord. And I was charmed by the ethereal quality of the experience. I was visited by a simplicity angel! Lucky me.

A $2,000 Benefit for Exposing My Finances to the World

2006-01-12T11:33:00.000-05:00

This morning I received a comment on my blog that gave me the same feeling as receiving a Christmas present from Santa. On my post showing my 2005 tax estimate, I reveal that I contributed $3,000 to my 2005 IRA. An anonymous comment popped up on my post for my 2006 goals pointing out that the 2005 maximum is $4,000, and that I can still add to my 2005 IRA. Wahoo! I completely forgot that you can still contribute to last year's IRA.

Another comment on the thread for my 2006 goals pointed out that I had set my 2006 IRA contribution goal too low. The result of these two comments that I will transfer an additional $2,000 from my money market account to my IRA account. For a compulsive retirement saver like me, that's quite exciting.

I wish I could send a couple of canned hams to those anonymous commenters who have made my day. Thank you!!!

Hit and Run Update: Determining Liability

2006-01-11T23:52:00.000-05:00

Auto insurance companies are infuriating! Last month my car was parked in a lot and when I returned, I was treated to a large scrape and dent on one side (oh no!) and a note on the windshield from the offending driver (yay!). After a few weeks of unanswered phone calls, I finally connected with the driver who reported the incident to her insurance company (hurrah!). I was impressed when her insurance company called me at 8:00 a.m. on Monday morning to start the claim process. I have received a quote for the work and await scheduling of the repairs with the body shop that the insurance company selected for me.

Silly me, I thought everything thing was going smoothly. Today I received a call from the body shop saying they can't schedule my repairs until the insurance company determines liability for the accident. I wasn't even in the car when it was hit! Who's fault do they think it was? Grrr....

Being Single Aids in Rejecting New TV Purchase

2006-01-10T12:54:00.000-05:00

Yesterday I decided to rearrange some furniture in my condo. As part of the rearrangement, I moved my TV and DVD player from the office to the living room. The only spot in the living room for my TV is above the fireplace. As a result, the line of sight to the TV is undesirably high, but I'm sure I'll get use to it. The TV sits even higher because the DVD player is underneath it. My boyfriend stopped by after work and immediately noticed the new TV placement. He spent quite a bit of time trying to convince me that I now needed a new TV with an integrated DVD player. As part of his argument, he pointed out (with disgust) that I maintain the cable connection on my existing TV with twist ties because the connection snapped off in a previous move. But the twist ties work just fine to hold the connection in place. Sure, I occasionally have to play around with it to fix fuzzy reception or ghosts on the screen. It's still a perfectly good TV and I don't mind that minor inconvenience when I think of the alternative. I know if I walk into an electronics store, the salesman will inform me that I must get a flat screen HDTV for $1,500. And of course I'll admire the shiny new TV's and probably think that I actually do need one.

So as my boyfriend stated his opinion (multiple times) I just smiled and nodded and acknowledged that he was right - yes, the TV is too high and a new one would certainly improve the situation. Sure, using twist ties is a bit "ghetto" (his word), or rather "frugal" (my word). But you can't see them - they're in the back of the TV. But will I buy a new TV? Heck, no. What I have is just fine, thank you. That's one benefit of being single. I get to make 100% of my own decisions.

The Hit and Run Driver is Paying Up!

2006-01-09T17:20:00.000-05:00

I wrote back in December that a driver who hit my car while it was parked in a lot left a note for me. We traded voicemails once just after it happened in December, but after three weeks of trying to reach her, I had given up hope and was considering paying for the repairs out of my own pocket. The repairs are substantial. I obtained three estimates and they ranged from $900 - $1,000.

This weekend on one last desperate attempt to reach her, she answered the phone when I called! I think her guilty conscience got to her because she agreed to report it to her insurance company and she immediately called me back with a claim number.

This morning her insurance company called me to settle the claim. I took my car to their recommended repair shop for an estimate and to schedule the repairs. I was surprised when their estimate was only $650. Did the other repair shops estimate higher because there was no insurance company to lean on them to keep the costs down? I find that to be very curious.

This is all very good news. My car will be repaired later this week. Life is good.

Hit but no Run Update

2006-01-06T19:30:00.000-05:00

Last month my car was hit while parked in a parking lot. I was thrilled to find a note on my windshield with an apology and a phone number. I called the person who left the note and left a message. She returned my call and left me a voicemail saying she'll be happy to pay for the damages. Well, that was three weeks ago and she will no longer return my calls. It looks like I'm on my own for this tab. I got three estimates on the body work and they average $1,000. I might think about driving around with the damage. Dang.

Simple Solution to Manage Store Affinity Cards

2006-01-06T13:15:00.000-05:00

Sometimes my goals of frugality and simple living conflict with one another. An example is how to manage all those store affinity cards. I'm talking about punch cards ("buy 9, get your 10th free!") or membership cards like those you have to scan at the grocery store to avoid being charged $18 a pound for bananas. The frugal side of me adores those cards. But my simplicity side hates having the cards junk up my wallet.

Some stores will tie your affinity card to your phone number, allowing you to make a purchase without the card. But not all stores are that sophisticated. I devised a simple solution that allows for the best of both worlds. I purchased a zipper-top coin purse to be the new home for all those cards. Now my wallet contains only my drivers license, ATM card, Visa card and library card (that one scored a precious spot in my wallet because I use it so often). All other cards now live in my little coin purse, happy and snug, always with me, and easy to locate in my purse.

When shopping for a coin purse, be sure that the zipper is long enough to allow you to easily slide the cards in and out. I tested coin purses at the store with my drivers license and found that many coin purses are a little too small for cards.

Now I never find myself at the Greek deli kicking myself because I left my gyro punch card back at home.

Discover the Joy of Canceling Something

2006-01-05T19:40:00.000-05:00

If you have yet to discover the joy of simplifying your life, you can take some baby steps by reading an excellent article called Modest Change: Cancel Something posted on 43folders. Be sure to read the comments, too. The article correctly points out that by reducing just one time-sucking thing from your life, you reduce the mental clutter associated with it. It provides some examples of things you can eliminate, such as RSS feeds (not this one, please!), a newspaper or magazine subscription or TiVO.

I quit subscribing to the Seattle Times when I moved into my condo because it was getting stolen from my building several days a month. I still ache for the daily crossword puzzle, but I have gained 30 minutes to an hour back in my day when I would peruse the paper. I realized that I got just as much news from the online version.

So start today and eliminate something small from your daily life. You'll be surprised what you can live without!

January Net Worth $401,134 (up $5,532)

2006-01-05T16:22:00.000-05:00

I broke the $400,000 barrier this month. This month's gains are mostly attributed to investment gains in my IRA, 401(k), ESPP and stock option accounts. I would like to devise a way to estimate my current condo value without bothering a local real estate agent. If anybody has any good resources, I'd like to learn about them.

The zero change on my mortgage balance is because I calculated my December net worth after I made my mortgage payment on the 10th of the month. Going forward, I will calculate my monthly net worth prior to that date.

I anticipate increasing my monthly net worth by $5,000 each month in 2006, so I should end the year around $460,000.

Selling Clothes at Consignment Store Results in $135 Check

2006-01-04T12:24:00.000-05:00

Last year I completed an overhaul of the clothing in my closet. In a previous post, I wrote about how I've actually saved money by buying high-quality clothing in classic styles. I purged my closet of all clothes and shoes that were either too trendy, nice but ill-fitting, cheaply made or redundant. I replaced the clothes with high-quality staples. As I purged, I set aside items that would be appropriate for my local consignment shop. Before taking the clothes, shoes, purses and belts to the shop, I made sure everything was impeccably clean and pressed, polished and shined. And I only took clothes that were appropriate for the current season. I went to the consignment shop every two months dropping off clothes and picking up checks from the previous batch. Because I was meticulous with the clothing I took to the shop, they sold 100% of the items. Yesterday I picked up the final check for $135. My bi-monthly checks averaged $75. This one was a bit higher because I sold a leather jacket in a dated style. My closet is now organized, minimized and filled with beautiful items that I love. And I have a nice little check that I will put toward an extra principle payment for January!

American Consumerism in Dick and Jane

2006-01-02T23:20:00.000-05:00

I saw the movie Dick and Jane this weekend. I won't be ruining the movie for you by mentioning that it contains a typical example of the consumerism that runs rampant in our society. There is a scene in which Jim Carrey is in his driveway standing next to his BMW. His neighbor pulls up in a brand new Mercedes that turns on and off using voice commands spoken into a remote control. Jim Carrey immediately feels that his BMW is inadequate. It is a brief, witty moment in the movie simply because all of us can relate to how Jim Carrey felt when his neighbor one-upped him with his fancy new car. Even though I could relate, I gave up keeping up with the Joneses a long time ago.

As a sidenote, the movie is pretty weak so I wouldn't recommend paying to see it in a theater. Wait for it to come on cable or video.

Happy New Year!

2005-12-30T14:13:00.000-05:00

I'm off to spend the New Year's weekend snowshoeing in the Olympic Mountains. Happy New Year everybody!

Liberal Store Return Policies

2005-12-29T17:52:00.000-05:00

There are a couple of stores that I am fiercely loyal to because of their no-questions-asked return policies: Nordstrom and REI. Don't you hate it when you buy something and use it only to find that something significant is wrong with it? Most stores would look at you like a crazy person if you tried to return a pair of shoes that had already been worn outdoors. Both Nordstrom and REI will take back any item they sell within any period of time. Because of this amazing return policy, I will shop at their stores first before looking for a product elsewhere. Just yesterday I returned a bike to REI that I purchased over a year ago because the gears weren't shifting properly and they weren't able to repair it.

I save all of my receipts which allows me to get the full price I paid back on my purchase. Otherwise, the stores will offer the current price of the item if it is on sale.

I've heard that LL Bean will take back their products as well, but I have never returned anything there. Does anybody know of other stores that offer a similar return policy?

Has Anyone Heard of This Uber-Frugal Guy?

2005-12-29T17:43:00.000-05:00

Last January my coworker read an article that inspired her to change the way she spent money. She does not recall where she saw this, so I'm reaching out to the blog-o-sphere to see if anyone has a link to the article. The article was about a guy who made a New Year's resolution to spend money only on bare necessities for one year. He would purchase clothing if what he already owned wore out during the year and could not be repaired. But all superfluous expenses were eliminated. It was an extreme example of frugal living, but I'm dying to get my hands on it to use it for inspiration. Hopefully somebody out there has a link to the article. Thanks!

Frugal Cable TV Bill

2005-12-28T18:42:00.000-05:00

I was disappointed to find out that my trusty rabbit ears didn't provide reception when I moved into my condo a couple of years ago. I begrudgingly called my local cable company, Comcast, and asked for basic cable service. Their price for basic cable was around $40 a month. I told them that all I wanted was to receive the network stations, and they said that they offered a non-advertised package called Limited Service which includes the network stations, HGTV, MTV, E!, Discovery Channel, Hallmark Channel, American Movie Classics, the Weather Channel, and a few assorted others. My monthly cable TV bill for this service is less than $13 a month. It is a much better option than $40 "basic" cable.

Update on Holiday Layoffs - I've Been Spared!

2005-12-27T19:29:00.000-05:00

Two weeks ago, my department announced there would be some layoffs prior to the Christmas holiday. I'm happy to report that I was spared from the chopping block. I breathe a sigh of relief for myself, but I feel for the individuals who were affected.

Simple Airline Travel

2005-12-27T09:38:00.000-05:00

Yesterday I flew home from my week-long vacation in Houston. Because I live 2,400 miles away from my family, I fly to visit them two to three times a year. I also travel for work once or twice a year, and I take an international vacation every year or two. After having this travel pattern for several years, I have established a few practices that have simplified airline traveling immensely.

I never, ever check a bag. I have a small suitcase with wheels that fits in the overhead bin that I use for all domestic flights. If it doesn't fit in there, then I'm trying to take too much. I also bring along a duffel bag that I bought at REI that crushes down into a small zipper pocket. If I return from a trip with several additional items (such as Christmas gifts) I use this for overflow and place it under the seat in front of me. For international travel, I take a backpack. My longest international trip was four weeks long visiting six countries in both hot and cold weather. I took nothing but a simple backpack. How nice it was to hop on a train or subway with everything I owned. I followed packing tips found on Rick Steves website. Before I carried everything on the plane, I would wait up to an hour in baggage claim. What a waste of time!

I never sit in rows 1 - 19. Because I don't want to be caught without overhead bin space on a plane, it's important to board early. Most airlines board from the back of the plane. Recently some airlines have started boarding window seats first, so be aware of changes.

I always check in online. Printing a boarding pass before arriving at an airport eliminates the need to wait in line at the airport. There are even lines at the self check-in kiosks as they have grown in popularity.

I always book a direct flight. My days of saving $50 on a connecting flight are over. The simplicity and time savings of one direct flight to your destination is well worth the extra money for me.

Cash Flow Effect of Having No Mortgage Payment

2005-12-20T12:00:00.002-05:00

I've written recent posts on my long-term goal of eliminating my mortgage. In the comments on that post, it was pointed out that by paying off my mortgage early, I would be missing out on the tax savings of the mortgage interest deduction. So I thought I would take a look at the big picture on how paying off my mortgage would affect my cash flow. Using my 2005 figures for income, IRA contribution, mortgage interest paid and property taxes paid, I ran the TurboTax tax estimator for the following two scenarios:

Scenario 1 (Today's Reality)
Pay monthly mortgage with no additional principle payments.
Annual amount of principle & interest payments = $11,890.
Annual taxes owed: $14,503.
Total out-of-pocket expenses: $26,393

Scenario 2 (A Perfect World: my goal in 10 years)
Condo is paid off - pay no mortgage interest.
Income, IRA contribution and property taxes paid are the same as in scenario 1.
Annual amount of principle & interest payments = $0
Annual taxes owed: $16,291.

The tax estimator predictably calculated higher taxes owed for scenario 2. However, when you take into account the fact that if my mortgage were paid off, I would not have an annual expense of $11,890 on principle and interest payments, scenario 2 is the clear winner. I realize that this is a simplistic analysis of whether I should pay off my mortgages, but it is powerful.

Going Against the Grain

2005-12-19T14:06:00.000-05:00

It is common for those practicing simplicity to be misunderstood and to have the majority of society disagree with their choices. I mentioned in an earlier post that I chose to step out of the management track at my company in exchange for a low-stress position with no management responsibilities. Although I did not take a pay cut, I will forgo future salary increases associated with promotions. I expect to continue to receive annual merit increases and performance bonuses. My friends were aghast with my decision and couldn't believe I'd pass the opportunity of having a prestigious title at my company. Well, I did pass on it. And I'm glad.

When I revealed my decision on this blog to pay my mortgage off early, I received a few comments from readers stating that I'm basically leaving money on the table by not considering the impacts of the mortgage interest tax deduction or the very low interest rate of my mortgage. And in response to that, I completely agree! In the short term, yes, this is costing me money. But in a quickie analysis I did, if I am able to maintain $10,000 per year in extra principle payments, I will pay off my mortgage in approximately 10 years and eliminate about $100,000 in future interest payments. In 10 years I will be 47 years old and will be mortgage-free. The opportunities this will offer will be amazing! I might decide to quit corporate America at that point and take a part time job. Or maybe I will buy a new house and keep my condo as investment property. By going against the grain and keeping my sights on a long-term goal, I will have many future opportunities.

Hit but No Run

2005-12-16T20:50:00.000-05:00

Earlier this week I parked my car in a pay lot downtown. When I returned to my car there was a note on my windshield from somebody who had dented my door when she pulled into the space beside me. I was so pleased that she had left a note. But I started to get concerned when she didn't return my phone call to discuss the dent. I became even more concerned when the estimate from the body shop came back at $995! My fears were allayed today when she called back and said she'd be happy to pay for the damages. The next step will be for me to actually receive a check from her that doesn't bounce. But I'm going to give her a chance, because she did the right thing by leaving a note.

Even if she doesn't pay, I'm going to have the car repaired - I can't stand driving around with a dent. I like to maintain my stuff. I'm hoping she won't want to involve the insurance companies, because I'll probably pay more in higher premiums than the cost of the repair. We'll see how this plays out.

Early Mortgage Payoff Analysis

2005-12-16T19:54:00.000-05:00

As stated in my 2006 Financial Goals and Objectives, in January 2006 I will start making extra principal payments toward my mortgage. I own a one bedroom, one bathroom new construction condo that I purchased in April 2004. My mortgage is a 7-year arm that is at 4.75% interest. I discuss my decision to pay off my mortgage early as opposed to investing the extra money in the post of my long-term financial goals. I purchased my condo in April 2004 for $269,000. I put $79,050 toward a down payment, the result of appreciation from the sale of a house I owned in Seattle. I built an amortization table in Excel to calculate the impact of extra principle payments. Here are the key figures:

Loan amount: $189,950
Interest rate (until April 2011 - 7-yr ARM): 4.75%
Monthly payment (principle & interest): $990.87
Mortgage balance (as of Dec. 2005): $184,727

It is staggering to see that I have made 21 payments against this loan totaling $20,808 and I have only reduced my balance by approximately $4,000. Ouch.

My objective for 2006 is to contribute $10,000 in extra principle payments throughout the year. If I reach that goal, by December of 2006 I will have knocked 3 years off the term of the loan and reduced the mortgage balance to $171,633 (versus a balance of $181,543 if I chose not to make extra payments). This will have a negligible affect on my net worth as I believe the extra principle payments would have just gone into my money market account if I hadn't chosen this objective.

I chose the $10,000 target to pay toward principle based on three factors:
(1) I thought it was an achievable yet ambitious number,
(2) if I continue this trend through 2011 when my ARM expires, my mortgage balance will be close to $100,000 when I refinance, and
(3) it allows me extra funds each month for 'mad money.'

Read more about the controversial decision to pay off my mortgage early.

Follow my progress to see if I am able to meet this goal.

Long Term Financial Goals Driven by Voluntary Simplicity

2005-12-16T12:21:00.000-05:00

Voluntary simplicity means something different to every person who practices it. For some, it means living off the land in a farm house and being self-sufficient. For others, it means living without a car and cable TV. I have read a dozen books on the topic as I sought to embrace simplicity in my own life. I was disgruntled with corporate life - I was working long hours in a high stress position. I felt bitter that I was dependent on this job for my livelihood. I was secretly hoping I would get laid off so I would be forced into a change. The layoff never happened and I was too scared to leave my job. As I explored ways to change my life so that I wasn't so dependent on that corporate paycheck I stumbled upon the concept of voluntary simplicity. After much research and reflection, I decided to stay with my company to take advantage of the good pay and benefits, but I switched to a lower stress position with more reasonable work hours. In essence, I quit climbing the corporate ladder in exchange for a personal life. It was a very difficult decision to make. I have given up future promotional opportunities with my company but in hindsight, it was the best decision and I'm thrilled with it. I no longer work past 5:00 pm; I no longer dread going to work on Mondays, and when I get together with my friends, the most common topic of conversation is how much they all hate their jobs. I can just smile and say mine is great. They're jealous! Now as I embark on setting my long term financial goals, I have decided that my 'financial comfort zone' will be when I pay off my condo. I know that many personal finance experts believe that this is a bad idea - the opportunity cost of investment gains vs. the mortgage interest rate, yadda yadda yadda. But for me, the peace of mind that I'll have my mortgage wiped out in less than 30 years is worth more to me than any additional gains I would have made investing those extra principal payments. I am also saving a fortune in future interest payments. Plus, once my condo is paid off I'll no longer feel like I'm chained to my corporate job. I can also move out and rent it for much higher profits than if I have a massive mortgage payment. This strategy might not work for everyone, but it's definitely for me.

Read how I quantify my 2006 financial goals and objectives.

2006 Financial Goals & Objectives

2005-12-15T22:24:00.000-05:00

My goals and objectives for 2006 merge my personal finance and voluntary simplicity beliefs. My goal is to payoff my condo as quickly as possible while maintaining: maximum annual contributions to retirement savings, a $20,000 cash emergency reserve, and enough cash to have some fun in 2006.

My starting point for these objectives is my December 2005 net worth summary. Let me provide some context for these goals:

401k contribution. The maximum 401k contribution was increased from $14,000 in 2005 to $15,000 in 2006. I must adjust my paycheck percentage contribution to achieve the maximum contribution by next December. My current contribution amount is still set at the $14,000 level which I achieved with my December 3 paycheck.

IRA contribution. My money market account currently contains approximately $28,000. In January, I will transfer $3,000 to my Vanguard IRA.

Extra mortgage payments. I plan to send $200 every two weeks to my mortgage company for extra principal payments. That will result in $5,200 annual payments toward the principal. I am hoping my annual bonus, which is paid in February, will be sufficient for the remaining $4,800. Read about my decision to pay down my mortgage.

Money Market Account Balance. I shall keep my emergency fund, vacation fund and kayak fund consolidated in my Vanguard money market fund account. I am taking a kayak course in the spring and will look to purchase a used boat and all the necessary kayaking accessories by May 2006 in preparation for a 10-day summer kayak trip in Canada. I will discuss my decision to maintain my cash at Vanguard in a subsequent post.

Monthly Credit Card Payment. I use the Chase Cash Plus Visa for all my monthly expenses: phone, electric, gas, groceries, etc. I pay the card off each month. In 2005, I charged less than $1,200 in only 3 months out of the year. The other months averaged around $1,400.

I will provide monthly updates on my progress toward these objectives and the effect on my net worth and mortgage balance. Stay tuned for updates!

Holiday Layoffs

2005-12-15T16:10:00.000-05:00

My company started downsizing employees yesterday. I work for a large telecommunications company. During our weekly team meeting this morning, my manager said that she couldn't comment on whether our group would be affected. However, she said that all affected employees would be notified by next Friday, December 23. Luckily, I have an emergency fund established. I hope I won't have to use it. Stay tuned to see if I receive a pink slip.

2005 Tax Estimate: I'll Owe $1,145

2005-12-14T16:35:00.000-05:00

Yesterday my mortgage company emailed my 2005 year-end statement (form 1098) to me showing the annual property taxes and total interest paid on my condo. I decided to pull my latest paycheck stub and estimate how my 2005 taxes will turn out. I've been using TurboTax for several years so I accessed their website and saw that they offer a free 2005 tax estimator calculator. You can find it on the left sidebar under Tax Planning and Tips. I entered my data and the result was that I would owe $1,145. I am very pleased with this estimate. I like to owe money come tax time so the government isn't getting a free loan from me. However I am careful not to claim too many deductions on my W-4 because it is possible to underpay on tax withholdings which will cause a penalty. You will need to have your most recent pay stub to run the numbers. Below I show the inputs for my calculation. It is only an estimate because I did not have my charitable deductions handy, nor accurate interest and dividend income figures. But it did give me an idea of what to expect for next April 15. Here are the figures I used as inputs:

I was very disappointed to see a TurboTax promotion offered called the Refund Bonus. If you use TurboTax and are eligible for a tax refund, you can direct some or all of it into the gift card program, where TurboTax will add 'bonus dollars' to your amount and return it to you in the form of a gift card for select merchants such as Starbucks, JC Penney, Lowes, Blockbuster, FTD Florists, Foot Locker and The Olive Garden. This is fine if you have a predictable, necessary expense such as home improvements at Lowe's. But to have your refund returned in a Starbucks gift card? That just guarantees you'll spend the money instead of using it to retire debt or save. I'm not a fan of this program at all.