Ways to Avoid Lifestyle Inflation

Think back to the last time you made it to that next level of income with you personal finances. Was it a brand new job? A raise? What was your first thought? If it was, “I have so much more disposable income.” Then you are not alone. There are plenty of people who probably have that initial feeling. It’s exciting to make more money, especially when it is your first “real job.” Letting your spending equally grow with your income is called lifestyle inflation and can get out of hand pretty quickly.

Hedonistic Paradox

Have you ever heard of the paradox of hedonism? Well, it pretty accurately describes the dangers of lifestyle inflation. There will probably never be a time in your life when you feel like you’ve “arrived.” No matter how lavish your lifestyle becomes there is always something out there that is bigger, better, and more expensive than what you have. I like to call it the smartphone principle. If your goal is to have the best smartphone out there, you are going to be spending a lot of money every six months. It is better to learn to be content with what you have than it is to constantly seek new and better things.

Awareness

Lifestyle inflation isn’t always such a conscience thing. You may be out one day when you see something and think, “well, I can afford that now, so why not?” Eventually that can become a regular occurrence. So the first way you can combat falling into inflating your lifestyle is to become aware of its signs. Keep a watchful eye on yourself whenever you come into some new money. Make sure you aren’t spending right under your own nose.

Stay Behind

Think about this. If you are struggling to make ends meet and you finally get more money that’s great. However, if you let your lifestyle inflate, your new expenses will eventually swell to the point that you were at in your old income. It’s like you are kid who buys a whole new wardrobe of large shirts as soon as you fill out your mediums. The best thing to do is to let your income get a few paces ahead of your lifestyle. That way you can easily handle all of your expenses.

Save

Another thing that could serve you better than splurging with your new found income is using the money to bolster your savings. There are plenty of things you could apply your new income too you’re your 401k, an emergency fund, a child’s college fund, of general all-purpose savings accounts.

Destroy Debt

There is one thing that you should definitely take care of before you let your lifestyle inflate; debt. If you have pre-existing debts you are really hurting yourself if you start to spend more frivolously after an increase in income. Whether it’s student loans, credit card debts, or some other thing that has you in the whole, an increase in your salary is your chance to pay them off. 

Considering these tips, try to avoid letting your lifestyle grow to consume more of you money. Try to focus less on acquiring material things and more on time with friends and family.  

Alternative Ways for Quick Cash Before the Holidays

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

1. Sell stuff around the house.  We all have clutter.  Identify the items you haven’t used in a year or longer and sell them on eBay or Craigslist or at a garage sale.  
2. Open a new bank account 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 (often three) and you have made a designated amount of transactions (usually including a few direct deposits).  Meet the bank’s requirement, and you have free money. 
3. Use credit cards to your advantage.  Many credit cards offer generous rewards.  The best cash back credit cards often offer 2 to 6% cash back on certain types of purchases.  Use your credit cards for all of your purchases and reap the cash back rewards.  (Just make sure you are disciplined to pay off the balance each month.  Otherwise, the rewards will be offset by the interest you pay.) 
4. Call to negotiate your cable bill.  Cable and Internet bills often are high.  Call the company to see what discounts they can offer you.  They may offer you a discount for six months, or they may give you options for items you can cut from your service to lower your cost.  Either way translates to more money in your pocket.

If you are looking for extra money, the only solution isn’t to get a part-time job.  There are plenty of ways to trim your costs and generate extra money if you are creative.

Guest Post by Melissa

How do you know your real credit score?

While we all know that it is important to have a good credit score, often we 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 take action if necessary.

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

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

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

The main benefit of having a good credit score is that you qualify for better rates on loans and mortgages. Lenders see you as a good risk and reward you accordingly.

It is not just when you are looking for credit, however, that your credit score is important. These scores are increasingly used as a background check to evaluate you when you apply for an apartment or job.

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

Scores can be different at the different credit rating agencies because they may have slightly different information from each other and may use different ratings systems. There should not, however, be any major discrepancies between the different agencies.

Your credit score is constantly changing. You get points based upon the agencies' assessment of your creditworthiness i.e. your ability to pay back your debts such as loans and credit cards. Your whole financial history is taken into account.

There are, however, some things that cannot be used to determine your credit rating such as gender, race, ethnicity and religion. This is because of equal opportunities legislation.

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

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

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

It is important to continue to have some form of credit such as loans or credit cards, however, as no credit history can have nearly as much of an impact as a poor credit history.

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

In the modern world, it is inevitable that we will all need credit at some point, whether it is for emergency loans or big purchases on credit cards. It is, therefore, important to make sure that your credit score is correct and take action if it could be improved.

How to Save Money on Cab Fare

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.

5 things you should always shop around for

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 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

Save on your Monthly Bills

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

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.