Learn about loans and personal finance at - 'Persoanl Money Store'

"Persoal Money Store" is one of the site with Free tutorials and information which can guide you in terms of money and finance.
Personal Money Store offers you knowledge and information you need to make educated decisions about your financial choices. Basically you can learn about loans & personal finance at the site.

Few post titles show what we can learn and read at the blog:

- Debt Collectors | The War On American Consumers
- Recycling and Payday Loans Add Green to Your Budget
- Don’t Credit Repair to easyJet: “NO” to Trachea Transplant Ride
- Managing Your Debts Through Debt Consolidation
- Intentional Fouls, Lost Space Backpack| Mistakes Happen, Get Free Credit Repair

You can learn basics of some finance terms like in 'Cash Advance' post, they explain it in these words:

'A Cash Advance is a form of short term lending designed specifically to assist consumers in paying all of their monthly bills on time when their wages fall short, or when they’re facing a surprise expense such as an emergency room visit or last minute trip to the mechanic a few days before payday. Also known as Payday Loans, a Payday Advance, Personal Loans, Quick Loans, or Short Term Installment Loans they are typically lent out in amounts ranging from $100 to $1,500.'

There are more tutorial posts on topics covering:

Payday Loans
Payday Advance
Personal Loans
Quick Loans
Short Term Installment Loans
Credit Repair
Site also offers facility of applying for online loans.

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"Free Money Finance" - Helping you increase your net worth

I love to read finance blogs which are created just to share personal finance experiences to the visitors. It's in human nature that we are more inspired and motivated by the personal experience based stories and may be simple calculations or figures don't impress us. "Free Money Finance" is a blog which is one of the finance blogs where bloggers has its own story to share with us.

Free money finance is about one simple thing: 'growing your net worth'. All financial topics are subsets of net worth, and this blog will talk about them – but always with the goal in mind of increasing your net worth – making you better off financially.

Why this blog was created?
(In blogger's own words)

'The current state of personal financial media/information/data (or whatever you want to call it) is dismal. It’s full of a bunch of sales people (“experts”) who want to:

1) Overcomplicate the facts so the average person thinks he/she can’t possibly manage it alone
2) Want to make “your” money “their” money (or at least take part of what you have to give you “valuable” advice)
3) Don’t know much about personal finances.

I’ve found that there is a lack of financial wisdom, real wisdom, out there that is simple and easy to implement. Therefore, this site is an attempt to talk about finances in a simple, easy-to-understand manner that allows the reader to manage his or her finances without a lot of effort.'

The real life story behind it

I've never really detailed my personal financial journey, so I thought I'd give you the basics today on where I've been. Maybe it will add some perspective on what I write about and why.

My parents were divorced when I was in the third grade and from that time until my mother remarried when I was in high school, we lived on one minimum wage income with very little child support from my father. It was certainly tight money-wise, but I never really knew how bad it was until many years later. I can only imagine the years my mom fretted over where our next few meals were coming from.

Things improved when my mom got remarried, and we moved up to the lower-middle class. Through the years, my stepdad's business did well, my parents got better at saving more, and we moved into the middle class. It really didn't matter for me though as I was away at college. I studied hard, worked all the way through school, and borrowed money from my grandmother. Thanks to hard work and scholarships, I left grad school with two degrees under my belt, only $5,000 in debt, and a job that paid more than my parents earned.

Through the years, I've done the things I've talked about here at Free Money Finance -- spent less than I've earned, paid off all my debt, managed my career, invested regularly and the like. During that time my net worth has grown and grown, allowing my family to be in the upper percentages of wealth in the U.S.

I share this information with you for the following reasons:

1. So you can get a feel for the person who writes these posts.

2. To demonstrate that the American dream is alive and well -- that it's possible for a poor kid to become well off without winning the lottery, robbing a bank or having a rich relative die.

3. To let you know that I'm writing from experience. I know what works financially since it's worked for me. I'm not writing about topics I've read about one time and regurgitated with opinions based on nothing -- I have lived these topics, applied these principles, and know what works and what doesn't. I then use 'Free Money Finance' to communicate what I know in hopes that you all will be the beneficiaries of this experience.

Source: My Story from Rags (Kinda) to Riches (Kinda)

Achievements:
Blog has earned good reputation among media and reviews at some known sites are worth to check:

BUSINESS WEEK MAGAZINE: "We've identified some of the most worthwhile investing blogs...worth visiting, whether you're a casual stockpicker or a seasoned pro in search of fresh ideas. [Free Money Finance] offers an inspiring mix of timeless investing wisdom and money-making ideas."

THE WALL STREET JOURNAL: "There are thousands of personal-finance blogs on the Internet. [Here is] a popular one."

US NEWS AND WORLD REPORT: "Practical advice on maximizing income, curbing expenses, and amassing wealth."


There are many good posts on the blog. There are 519 posts about 'saving money'. Not only saving money, but there are lot of money, finance, career, budget, credit cards, investement related posts which are worth to check.

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Bill paying tips

We all have to pay bills, and we plan ahead for bill paying process, it can make our life easier and hassle free. These tips can help you maintain a simple process making bill paying habit easy and stress free for you.

First step towards bill paying is to organize your bills.

Organizing tips

- Designate one specific container for your bills – a file folder, basket or letter tray on your desk, etc. As soon as you get the mail, sort out the bills and put them in your designated place.
- Create a convenient place to pay your bills. Supply it with everything you need -- checkbook, calendar, notebook, pens/pencil, stamps, etc.
- Schedule a weekly time to do bills. Consider it a standing appointment that you keep, just like a doctor’s appointment or work meeting. It’s much easier to stay on top of your bills if you do it weekly
- Set up a simple filing system to keep track of your bills and when/how you’ve paid them.

Bill-Paying Tips

* When you open your bill, circle or highlight the due date, and put it in an organizer or calendar to pay one week prior to the due date. Paying bills late can affect your credit history. Being tagged as a “chronic late payer” affects your credit score, which can mean you’ll be denied, or have to pay more, for a loan in the future.
* After you’ve written the check or paid the bill (via money order or electronically), make a note on the bottom of the bill indicating the date paid and the check number. File the bill stub/receipt. Keeping a file of your paid bills will help you with budgeting and in the event you have disputes with creditors.
* Consider setting up automatic withdrawal for as many bills as possible – including direct deposit for savings! Automatic withdrawal will save you time, ensure that your bills are paid on time, and will help boost your chances of maintaining a good credit history (or improving your current record).

* If you have Internet access, look into online bill paying. There are three ways to pay bills online:
1) First, you can pay online through your creditors’ website (i.e. some utility, phone, and other companies will allow you to pay your bills by credit card online). If you choose to pay your bills online by using your credit card, make sure that you can pay the card off at the end of the month so you’re not accumulating more debt.
2) Second, you can use an online bank to pay your bills; or
3) Use an online bill payment system that charges a monthly fee to pay your bills for you.
* Eager to eliminate the paperwork? Check out money management software packages such as Microsoft Money or Intuit’s Quicken. These programs can help you create an electronic budget, track spending by category, prepare for taxes, and print checks electronically downloaded from your computer.
* You can tame the “bill beast” by adopting even just one of these tips. Remember, taking small, manageable steps makes it more likely that you’ll stick to it and be successful. Take a first step toward gaining control over your bills today!

Source: Tomorrow's money

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"Quatloos" - A cyber museum of scams and frauds

"Quatloos" is a FREE to access site helping us learn about financial scams and frauds around us. The weapon to fight scams and frauds is to get knowledge about it. It can help us saving our money from fraudulant peoples who are around us and trying to grab it from us.

What is 'Quatloons'
Quatloos is a public educational website covering a wide variety of financial scams and frauds. Quatloos is sponsored by Financial & Tax Fraud Education Associates, Inc., a California not-for-profit company. It is an ad free site, supported by donations.

Mission: "This website seeks to educate you about certain types of financial frauds, how these deals really work, and how you can manage your risk of financial fraud"

What this Cyber Museum offers us?

* Quatloos! covers a wide variety of financial scams, including wacky “prime bank” frauds supposedly involving $100 Billion dollars investments that you can buy for a mere $100, exotic foreign currency scams claiming 80% per week returns, and many forms of offshore investment frauds.

* Quatloos! also warns about many types of tax scams, including claims that payments to the IRS are voluntary or that the income tax is unconstitutional, to “Pure Trust” structures that purport to be financial black holes but in reality will win you an extended stay at Club Fed.

* Quatloos! keeps readers’ attention by collecting some of the funniest scams around, such as non-existent countries and financial programs that are guaranteed by space aliens from the far reaches of the galaxy, as well as would-be victims’ responses to the scam artists’ offers - such as the Brad Christiansen Exhibit where Brad leads Nigerian scam artists on wild goose chases around the globe to try to collect his money.

Funny though these scams are, the sad truth is that many persons – including otherwise well-educated professionals and experienced businessmen – annually lose tens and hundreds of millions of dollars to these scams. By raising the public’s awareness about these scams, and providing a valuable on-line resource where potential victims can read up on frauds and fraud artists quickly, Quatloos! has saved would-be crime victims well over $100 million dollars over the last five years and probably much more than that.

people worldwide send information to Quatloos! and in many ways it has become a clearinghouse for information on the latest scams. Additionally, many law enforcement agencies have requested the use of Quatloos! materials for law enforcement and training materials, and Quatloos! materials are now being included in many books and articles written about scams.

Their forum is a place to discuss frauds and scams. Comment on Quatloos, give ideas for improving the website or fighting fraud, exchange theories on the origins of the term “Quatloos!”, and other stuff relating to the Synergistic Debentured Netdom of Quatloosia.

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Why invest in bonds?

Deciding to save and invest is the first step towards secure financial future. We can invest our money at many places but there are few options with low risks which might be stocks or bonds and among both investing in bond is better as they add safety and stability to your investment plan. Bonds are fixed-income investments, meaning that the amount of income you'll receive back on your investment is fixed in advance.

As every financial expert advises, the key to sound investing is diversifying – in other words, splitting your money up into different kinds of investments to reduce risk. The three main places to “park” your money are stocks, bonds, and cash/or savings.

Bonds can be a dependable source of steady, fixed income available for you to spend or reinvest.

The Benefits of Bonds

Financial Security
Who doesn't like the sound of “financial security”? There's a reason that a bond is called a “fixed-income” security – not only are you highly likely to get back your principal but you can also count on receiving interest on your investment.

Portfolio Balance & Diversification
Bonds can be great financial “buffers.” When the stock market is on a roller-coaster ride, bonds can help steady your pulse because they're a very safe financial tool to help balance the risk in your overall portfolio.

Tax breaks
One of the not so well known facts about bonds is that they're very often free from many taxes. For example, most bonds issued by state or local governments (also known as “municipalities” or “munis”) are exempt from federal income taxes. All bonds issued by the U.S. Government (also known as “Treasurys”) are exempt from state and local income taxes. Some municipal bonds (“munis”) are free from all three – city, state and federal taxes – a condition known as being “triple tax free.”

Weighing the Risks
Probably the first thing you've heard about investing is that it's never risk-free. True enough. And although highly-rated bonds are considered one of the safest ways to invest your money, you should still take the risks into account before making any decisions.

Bankruptcy
Bond issuers are not some mysterious “Wizard of Oz”-like entities. They're companies and units of government. And, sad to say, companies and sometimes even local governments can go bankrupt and default on their loans. Bonds with high credit ratings very seldom default and U.S. Treasury securities are considered essentially risk-free. But it's a fact to consider. Even bonds (except Treasurys) aren't risk free.

Your bond is “called”
Some bonds can be paid back early – what's known as your bond being “called.” If you own a callable bond and it is called you will still be paid back your initial investment and any interest you've earned so far, but you will not receive the future interest you would have otherwise gained. From our example, let's say your 9% bond was called after 8 years. You would be repaid your initial $1,000 investment (the principal), plus the $720 you had accumulated in interest. However, you would not receive the additional interest you were expecting when you made your initial investment for 10 years. Most important, if the company decided to call the bond, chances are that interest rates are now lower and you won't be able to find a similarly rated bond paying as high as the original 9% interest you were receiving.

Rising inflation
If inflation rises, the interest you make on your initial investment will look low compared to bonds currently being issued. And with your money locked in a bond, you could lose some principal if you sell it in order to move it into another investment that could give you a higher rate of return.

Selling your bond before maturity
If you decide you need your money back earlier than the date that your bond matures, You're taking “a chance” that you may get more, or less, than you paid. This depends mostly on the interest rates at which new bonds are being issued. That's why individuals who invest in bonds typically plan to hold them till they mature. And that's why it's important to determine when you'll want, or need, to reach your financial goal in order to purchase a bond that matures at that same time.
Now that you understand the benefits and risks, you should better understand the importance of bonds as part of your overall portfolio – they add some safety and stability to your investment plan. Next let's look at your bond buying options.
Source: Tomorrow's money

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Basic Investment Tips

'Knowledge is of two kinds. We know a subject ourselves, or we know where we can find information on it.'
By: Samuel Johnson

Internet is a good place to start learning about money, finance, budget, saving and investment. Starting point seeems difficult to find but if we learn how and where to start learning, whole process is easy and can leads towards


Some basic tips on investing

• Educate yourself: Contact organizations that offer investment basics. Regional chapters of the NAIC, the AARP, and the American Association of Individual Investors hold investment workshops for consumers of all ages. They will expose you to the financial terms and standards you need to understand when considering buying stocks, bonds or certificates of deposit (CDs).
•Go to school. Consider taking a community college or university extension course on investing. Such courses offer tips on the best magazines and Web sites to raise your confidence in investing.

• Ask around: If you do consult a financial adviser, investigate different planners before subscribing to a particular investment plan. Many financial planners meet with clients for free, but may push certain investment products that do not suit your investment style.

• Think about how "risk averse" you are: If you don't have much time -- or the stomach -- to monitor your investments in individual stocks, consider other types of investing, such as mutual funds. It's a less risky way of getting involved in the stock market, and provides much more stable returns. You can request performance information about particular funds on the Internet or by requesting a prospectus from the company. As many people have lost money on the market as have gained wealth, so seniors should proceed cautiously.

• Investigate your investment adviser: Make sure your adviser doesn't have any disciplinary actions against him or her. Ask to see what's called a "Form ADV," which lists education and investment strategies. You can check out a dealer by contacting the Financial Industry Regulatory Authority (FINRA) at finra.org or 800/289-9999 or the North American Securities Administrators Association (NASAA) at 202/737-0900.

• Read agreements for investment accounts carefully: They usually spell out how much risk you will take, how investments will be paid for, who makes the decisions, and how disputes are resolved. Make sure you don't budget more for investing than you can spare from your monthly pension.

• Ask for a commission schedule: This outlines how much commission you will pay. Never make out a check to an individual broker.

• Report abuses: FINRA maintains an Investor Complaint Center on its web page http://www.finra.org/complaint or you can call them at 240/386-4357. The Securities Investor Protection Corp. (SIPC) offers general investment advice and helps consumers with investment problems. Contact them at 202/371-8300.

Source: Seniors and investing

"If you have knowledge, let others light their candles at it."
By: Margaret Fuller

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An online FREE tutorial - "Investing For Your Life"

We make planning and save money for our future and the best use of our saving is to invest it at a place which is reliable and could provide profit for our hard earned money. But when our saving is not too much and we are new to 'investing', we need a guidance in this regard. This post is about an online FREE tutorial which is basically a home study course "Investing for Your Future".

This online FREE tutorial is helpful for the people who save money and want to invest their money for their future needs. It is especially for beginning inverstors with a little savings. You can also get the print out of this course as it is very easy to download at your hard disk.

"Investing for Your Future"– is brought to you by the USDA's Cooperative State Research, Education, and Extension Service, this home-study curriculum covers the basic building blocks of sound financial management.

Details of the home study course

11-unit home study course is developed by the Cooperative Extension system for beginning investors with small dollar amounts to invest at any one time. It was assumed that many readers will be investing for the first time or selecting investment products, such as a stock index fund or unit investment trust, that they have not purchased previously.

The course units were developed in a logical order. "Basic" topics such as setting goals, investment terms (e.g., diversification, dollar-cost averaging, asset allocation), and finding money to invest lay a foundation to help readers understand how and why they’re investing. You’ll also begin to understand that there’s generally a trade off between risk and reward. The more risk an investor assumes, the greater the chance of a high return, as well as the greater chance of loss.

After exploring "the basics," the course describes specific types of investments (e.g., stocks and bonds) in detail. You’ll begin to understand their characteristics, how they are purchased, and what it costs to purchase each investment. There are also units that focus specifically on tax-advantaged investments and investments that can be purchased with $1,000 or less.

Finally, Investing For Your Future concludes with additional topics of use to investors: available resources, how to select professional financial advisors, and information to help you avoid becoming a victim of investment fraud. You can choose to read the entire course, in any order that makes sense to you, or select only those topics that are of most interest. The choice is yours.

Simply reading Investing For Your Future will not turn you into a successful investor, however. A printed page simply can never replace the personal motivation that is required to take action to achieve financial goals. That is why there are "action steps" listed at the end of each unit. These are specific steps that readers can take to apply the course material to their lives. We urge you to consider each action step carefully and take action that is appropriate for your individual financial situation. The course also contains a number of worksheets, which, again, are tools to help readers apply the information contained within each unit.

Link: Home study course

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How to recognize Credit Repair Scam?

This article is helpful for the people having bad credit history or score, providing you tips to recognize the scams of credit repair.

You would notice many ads claiming to help you repair your bad credits or create a new credit identity, but The Federal Trade Commission (FTC) suggests you to not believe these claims: they’re very likely signs of a scam. Indeed, attorneys at the nation’s consumer protection agency say they’ve never seen a legitimate credit repair operation making those claims. The fact is there’s no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan.

How to recognize a Credit Repair Scam?

Everyday, companies target consumers who have poor credit histories with promises to clean up their credit report so they can get a car loan, a home mortgage, insurance, or even a job once they pay them a fee for the service. The truth is, these companies can’t deliver an improved credit report for you using the tactics they promote. It’s illegal: No one can remove accurate negative information from your credit report. So after you pay them hundreds or thousands of dollars in fees, you’re left with the same credit report and someone else has your money.

If you see a credit repair offer, here’s how to tell if the company behind it is up to no good:

- The company wants you to pay for credit repair services before they provide any services. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.

- The company doesn’t tell you your rights and what you can do for yourself for free.

- The company recommends that you do not contact any of the three major national credit reporting companies directly.

- The company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.

- The company suggests that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number.

- The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness.

If you follow illegal advice and commit fraud, you may find yourself in legal hot water, too: It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses. You could be charged and prosecuted for mail or wire fraud if you use the mail, telephone, or Internet to apply for credit and provide false information.

Source: The Federal Trade Commission (FTC)

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Tips for making the most of your tax refund

According to Kiplinger.com, about 70 percent of all filers get tax refunds and are anticipating a tax refund this year averaging $2,200. Americans more than ever are choosing to efile and with more consumers filing their income taxes before April, the extra cash can't come soon enough.

You can also get your income tax refund faster with direct deposit. IRS Form 8888 allows you to deposit your refund into more than one account so you can wisely save and spend your tax refund.

Tips for managing your tax refund

Avoid refund anticipation loans (RAL)
An RAL is an extremely high-cost bank loan secured by your pending tax refund, which you have to pay back even if you don't get a refund. If you're looking for a quick refund you can get it within two weeks or less by efiling and having the refund directly deposited into your account. You can e-file for free if you earn $52,000 or less. Also consider the Volunteer Income Tax Assistance (VITA) program and AARP's TaxAide - both offer free tax preparation for low-income taxpayers.

Pay down credit cards or other high interest loans
Use your refund to pay more than the monthly minimum payments. Add extra cash to loans with high interest rates. Remember, credit card debt is simply an unsecured loan. The longer the life of the loan, the more you'll pay for borrowing the money. If you can't pay them off completely, make an extra payment. By making an extra credit card payment you can reduce your interest costs.

Pay down your mortgage
Any extra payments go toward paying down your principal. Paying off your mortgage faster means you pay less in interest. Using your refund to reduce your mortgage debt can mean substantial long-term savings. Just by making two extra payments a year, you might be able to pay off your loan in 15 years on a 30-year mortgage.

Contribute to or open an emergency fund
Most people don't have money stashed away for unexpected emergencies. Your tax refund is a great way to start. The NFCC recommends saving three to six months of living expenses. By placing the cash in a separate savings account or short-term CD, you're going to be less likely to use it and it will be there in case of an emergency.

Invest in retirement
Many people are working after the normal retirement age of 65 and it is estimated that a majority of workers believe they are behind on their retirement.

Tips on Your Tax Refund savings.

Whether it's your 401(k), IRA or Roth IRA, investing your tax refund now could mean a nicer cushion later. The sooner you start saving the more time your money has to grow. Make retirement savings a high priority by setting goals for yourself, devising a plan and sticking to it.
Service the car and tackle other to-do's. If you've been putting off getting an oil change, cleaning the gutters or fixing the leaky roof - now's the time to cross those things off your list. Using your tax refund to maintain your expensive possessions now could save you money in the future.

Open a 529 College Savings Plan. A college education isn't getting any cheaper. With 529 College Savings Plans withdrawals are tax-free when used for higher education. Plus, some plans come with tax benefits.

Source: The National Foundation for Credit Counseling (NFCC)

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Earn Money While you spend with "Cash Back Credit Cards"

The idea is very appealing for shopping lovers to earn money while you spend it with your 'cash back credit card'. The process is simple and many of us enjoying saving with their shopping as you get money back on your purchases. It might be around 1 to 5 percent cash back on purchases but more you shop, you save more money. This article would help you get most from your 'cash back credit card' offering you useful tips.



Tips to earn money while you spend with cash back credit cards

* You won't need a spreadsheet to find the most rewarding card--just a calculator and a good idea of how much you spend, where you spend it, and even what day of the week you tend to shop. Many cards reserve their most generous cash-back offers for purchases at supermarkets, drugstores, and gas stations. "Zero in on cards that give you the most generous rewards for shopping at your usual spots," advises Greg McBride, a senior analyst at Bankrate.com.

* Be sure to check the details for your cash back credit cards. Cards that pay you cash back at the highest rates may have caps and restrictions that would result in a lower annual rebate than, say, a straight 1 percent cash back. "Invariably, if you see a 5 percent card, there will be restrictions or other strings attached," Arnold says.

He points to Discover's Open Road Card as an example. The card pays 5 percent cash back on gas and auto maintenance, but the fine print says that applies only to the first $1,200 you spend in the category. Another example is the Discover More Card, which also pays 5 percent on purchases in certain designated categories, but they change four times a year. And if you shop at warehouse clubs or discount stores like Wal-Mart, you'll get back much less--only 0.25 percent.

* But the right card can pay off handsomely. Arnold says he and his wife use American Express's Blue Cash card, which, after you charge $6,500, pays 5 percent back on further purchases the rest of the year in supermarkets, drugstores, and gas stations, and 1.5 percent on everything else, with no limit on the reward amount. Their rebate for 2006 was over $900, Arnold says.

* When shopping for a reward card, as with all credit cards, watch the fine print. Like any other credit card, the reward variety comes with the usual late-payment penalties (as high as $39 a month), as well as shrinking grace periods (as short as 20 days) and lofty default rates (30 percent or higher). They also have some other twists, including the fact that you often have to request your rebate to get it. Generally, the credit-card firms do not automatically send you a check or gift certificate or credit your account. You'll find the gotchas on the terms-and-conditions page attached to online and paper applications.

* You'll also need to keep up on program switcheroos. Card issuers reserve the right to change the cash-back agreement at any time. Be aware that the deal you sign up for today might evaporate next month. To keep up with sudden changes, you'll need to read all those annoying enclosures that come in the mail with your bill every month.

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Money saving tips for people with tight budgets

These tips are really helpful for the people with tight budgets, because for them money saving is difficult. But it does not mean that they don't have any options to make budget or look around the ways to save money. Today's financial situation keeps us under pressure because of the insecure economical ups and downs.

Money Saving tips

Track your expenses:
To find money available for savings, first determine where you are currently spending your money. You can’t know where you’re going until you know where you are. Tracking expenses will provide the answers. Write down every cent you spend. At the end of the month, take a look at where your hard-earned cash really goes. You just might be surprised.

Create a budget:
Budget is not a four-letter word. A well-designed spending plan considers all sources of income, living expenses, debt obligations and savings. Be sure to incorporate all three expense categories: fixed expenses (e.g., mortgage, auto loans and rent), variable expenses (e.g., credit cards, groceries, entertainment, clothes and gasoline) and periodic expenses (e.g., property taxes, home repair, and car maintenance). Whether it’s saving for retirement, education or a vacation, the old adage remains true: pay yourself first. You can’t spend money you don’t have, so set aside your allotted savings right off the top.

Customize your budget to fit your lifestyle:
When constructing your budget, be realistic when looking for opportunities to save money. People are more successful when they cut back, as opposed to cutting out. Don’t be too strict, or you won’t stick with your plan. Know, however, that small changes over time can indeed add up. For instance, instead of eating lunch out every day, brown bag it two days per week. Take a look at your cable package and cell phone plan to determine if you have the right fit for your lifestyle. Evaluate the necessity of having a land phone. Savings opportunities are available in each spending category.

Involve the entire family:
A joint effort yields a greater result. And, make it fun. See who can save the most each month, and have a special prize for them. Agree upon a savings goal that everyone can work toward (summer vacation, new car, etc.). Celebrate each success along the way. Before you know it, saving will be as much fun as spending.

Find the right savings vehicle(s) for you:
There are many ways to optimize your savings. Consider splitting money between accounts that are liquid (such as a money market account) versus those intended for more long-term savings (such as certificates of deposit). Explore liquid money market accounts online, as these accounts can offer higher interest rates. Consider using automatic deposit, transfer, payment and withdrawal of money whenever possible to keep money out of your hands and in a safe place. Know that sometimes easy access to saved money is needed for emergencies, so don’t put all of your savings into vehicles where you’d be penalized for withdrawal.

Pretend it never happened:
When you get a raise, birthday money, bonus or tax refund, quickly put this extra income toward your retirement plan or savings account. The longer the extra money is in your possession the easier it is to spend it. If you were anticipating using this extra money to buy something special, instead consider using the money to pay down credit card debt, give yourself a small treat, and deposit what’s left over into your rainy-day fund.

Take advantage of your employer’s retirement benefits:
Gone are the days when Americans could rely on traditional defined benefit plans. Saving for retirement now rests more with individual Americans than ever. Regardless of your age, it is important to take an aggressive approach to saving. Contact your human resources department (HR) and research money-saving options, whether it’s through a traditional defined benefit plan that pays a set dollar amount each year of retirement or a defined contribution plan such as a 401(k) plan that allows contributions to be made with before-tax dollars. Also, ask HR if the company matches a portion of your contributions or allows catch-up payments. Changing jobs? Take your money with you – roll it over into an IRA or the new employer’s plan.

Source: National Foundation for Credit Counseling (NFCC)

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Celebrating Holidays with a Balanced Budget

Holiday season brings joy for us but with a tight budget it is difficult to plan for holiday shopping. This article offers you tips to celebrate your holidays with a balanced budeget.

In the Western Union Money Mindset Survey taken in August, 43 percent of consumers were already planning cuts on all holiday gift purchases. The survey was conducted by Javelin Research.

"In today's struggling economy, budget-conscious consumers have been thinking ahead and planning changes long before this holiday season kicks in -- and with good reasons," says Royal Cole, executive vice president and general manager of Western Union Payment Services. "As watchdogs of their own personal finance affairs, consumers are trying hard to stick to their budgets so they can keep paying necessary expenses such as rent, mortgage, utility, credit card and auto bills."

However, less green in your wallet doesn't have to equal pre-holiday blues. Western Union Payment Services offers some simple ways to curb spending and still preserve holiday happiness.

* Decide how much money you can spend on gifts and make sure to stick to this budget. If you need a point of reference, look at what you spent last year, and determine if you are able to match that, or if you can cut back on the list, either by buying fewer gifts, or spending less. Make a list of who you will purchase gifts for and tally how much you can spend on each to ensure you don't go over your budget.

* Be a savvy shopper and watch for sales, special promotional discounts or buy-one, get-one free offers. Also, spread your shopping out, so you can balance the costs between paychecks. If you find yourself short on funds and need to get the bills paid, consider last-minute, same-day payments, which can keep your payments current and avoid late fees.

* Discuss setting a budget limit on gift-giving with family and friends. One way to cut back is to draw names out of a hat, so you're only purchasing one nice gift for one person, rather than many gifts for everyone.

* Go online to www.overstock.com or www.half.com to find good deals. Remember, it's the idea behind the gift, not how much you spend on it.

* Research flexible payment plan options to maximize your cash flow for the holidays; ask your bank or creditor if they offer these customized bill payment plans. Or ask if you can organize a holiday account, with little deposits made into the account all year long.

* Give the gift of cash this holiday season -- a modest cash gift can help a friend or relative pay for basic necessities and living expenses. In this economy, it's a universal gift that everyone will appreciate, and you get a bang for your buck -- no extra costs for taxes, shipping or handling. Visit www.westernunion.com for more information.

* Make sure you're monitoring all household budget items so you might have a little extra money to keep you going during the holidays. Read personal finance articles for the latest ways to tighten your budget on sites such as www.smartmoney.com, www.ivillage.com or www.kiplinger.com.

Courtesy of ARAcontent

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