Thinking about investing in the new year? Bankrate.com lists the following to try and make the best of what could be a scary investing year.
• High yield -- don't settle for less.
• Offset the falling dollar's effect on your retirement.
• Don't be afraid of foreign investments.
• Diversification and a long-term approach -- ho hum, but smart.
• See a financial adviser.
• Stuff your retirement plan.
More at Bankrate.
It is one of the best times of the year to buy an automobile, and according to Bankrate.com's auto experts, the best deals are on domestic products.
Need a minivan? Chrysler is offering rebates of between $3,500 and $4,500 on its Town & Country vans.
Dodge is offering up to a $6,000 rebate on its Ram 1500 pickup.
Want a big, comfy -- if not exciting -- luxury sedan? Consider the $7,000 rebate on the Lincoln Town Car. If a Lincoln is a little too flashy, check out the Mercury Marquis sedan, which also carries a rebate of between $6,000 and $7,000.
Even the sporty Mustang is available with rebates from $1,500 and $3,000 on 2007 models.
Bankrate.com lists the top 10 things you are probably spending money on, that you could quit and pocket the money. I don't know if I agree with them but anywho...
1. Coffee -- According to the National Coffee Association, the average price for brewed coffee is $1.38. There are roughly 260 weekdays per year, so buying one coffee every weekday morning costs almost $360 per year.
2. Cigarettes -- The Campaign for Tobacco Free Kids reports that the average price for a pack of cigarettes in the United States is $4.54. Pack-a-day smokers fork out $1,660 a year. Weekend smoker? Buying a pack once a week adds up, too: $236.
3. Alcohol -- Drink prices vary based on the location. But assuming an average of $5 per beer including tip, buying two beers per day adds up to $3,650 per year. Figure twice that for two mixed drinks a day at the local bar. That's not chump change.
4. Bottled water from convenience stores -- A 20-ounce bottle of Aquafina bottled water costs about $1. One bottle of water per day costs $365 per year. It costs the environment plenty, too.
5. Manicures -- The Day Spa Magazine Price Survey of 2004 found that the average cost of a manicure is $20.53. A weekly manicure sets you back about $1,068 per year.
6. Car washes -- The average cost for a basic auto detailing package is $58, according to Costhelper.com. The tab for getting your car detailed every two months: $348 per year.
7. Weekday lunches out -- $9 will generally cover a decent lunch most work days. If you buy rather than pack a lunch five days a week for one year, you shell out about $2,350 a year.
8. Vending machines snacks -- The average vending machine snack costs $1. Buy a pack of cookies every afternoon at work and pay $260 per year.
9. Interest charges on credit card bills -- According to a survey released at the end of May 2007, the median amount of credit card debt carried by Americans is $6,600. Rate tables on Bankrate.com indicate that fixed interest rates on a standard card average 13.44 percent. Making the minimum payment each month, it will take 250 months (almost 21 years) to pay off the debt and cost $4,868 in interest. Ouch!
10. Unused memberships -- Costhelper.com reports that the monthly service fee at gyms averages between $35 and $40. At $40 per month, an unused gym membership runs $480 per year.
Some good tips on Bankrate.com for saving gas:
Gasoline prices across the nation topped out at an average of $3 a gallon as
April ended. That's the news from the Energy Information Agency, which tracks
fuel costs across the country. The last time most motorists saw prices over $3
at the pump was August 2006.
These gasoline prices send many of us into panicked flashbacks of the fuel crunches in the summer of 1980 and the mid-1970s. Thankfully, we learned a few good habits back then. Many Americans traded in their eight-cylinder gas-guzzlers for pipsqueak cars with small engines and better mileage.Then came the boom of the late '90s, and, oh, how quickly we forgot. Though
most of us still pump our own gas, we've fallen into bad habits again. We've
embraced the gas-guzzling SUV and dawdle, idling, in drive-through lines.
But you can hold down the number of times you have to stand at the gas pump, aghast, watching the numbers spin. These 15 tips will help you cut fuel consumption:
Car maintenance
- Keep the tires inflated properly. This one is simple and a potential lifesaver. Underinflated tires waste fuel and wear out the tire tread. Also, check tires regularly for alignment and balance.
- A well-tuned engine burns less gas. Get regular tuneups and follow through with routine maintenance. The right parts and fresh oil keep your engine happy and less thirsty for gas.
- Get the junk out of the trunk. A weighed-down car uses more fuel. For every extra 250 pounds your engine hauls, the car loses about one mile per gallon in fuel economy. Carry only the basic emergency equipment and items you really need.
Gas shopping
- Buy the lowest grade (octane) of gasoline that is appropriate for your car. Check your owner's manual for this information. As long as your engine doesn't knock or ping, the fuel you're using is fine. You can save hundreds of dollars a year.
- Pay cash at stations that charge extra for credit cards.
- Don't top off the gas tank. Too much gas will just slosh or seep out. Why waste those extra pennies?
Driving
- Drive intelligently; don't make fast starts or sudden stops. You're just overexerting
your engine and burning extra fuel. Gradual acceleration also helps automatic
transmissions run better. Engine-revving wastes fuel, too.
- Lighten up on the accelerator. The faster you drive, the more gas you use. Speed limits have gone up around most of the nation, but you don't have to see your fuel
consumption go up drastically as well. For example, driving at 55 mph rather
than 65 mph can improve your fuel economy by two miles per gallon.
- Avoid long warm-ups. Even on cold winter mornings, your car doesn't need more than a minute to get ready to go. Anything more and you're just burning up that
expensive fuel.
- Combine errands into one trip and plan your stops for the most efficient route. You'll save yourself time and money.
- Do not rest your left foot on the brake. The slightest pressure could cause a drag that will demand additional gas use -- and wear out the brakes sooner.
Other good habits
- Tighten up that gas cap. Make sure it's on securely. Buy a new one if your current cap doesn't fit snugly. Gas easily evaporates from the tank if it has an escape.
- Buy a fuel-efficient car. When pricing cars, factor in long-term fuel costs. Keep in mind that sunroofs add to wind resistance, lowering the mileage per gallon.
- Be smart with the air conditioning. On the highway, closed windows decrease air resistance, so run the air conditioner. But in stop-and-go traffic, shutting off the air conditioning and opening the windows can lighten your fuel use. Air conditioning can lower your fuel economy by 10 percent to 20 percent.
- Remove snow tires in good weather. Deep tread and big tires use more fuel.
According to a new survey, almost 50% of all workers in the US have less than $25,000 saved. That is not going to be enough for retirement, no matter what angle you look at it from. Here’s the scary part from the Money.com article about the survey:
Overall, 40 percent of respondents said they are not currently saving for retirement while 34 percent said they didn't have any retirement money saved whatsoever. A full 25 percent, meanwhile, said they had no savings at all - retirement or otherwise.
A nice article by Ben Stein, yes, that Ben Stein, on the basic principles of saving for retirement. He keeps it simple, maybe too simple for some people. Everyone has their own unique situation to deal with while trying to save for a comfortable retirement. So take this with a grain of salt, and tweak to your own situation.
The Six Principles
1. How much you save.
2. How long you give your savings to compound.
3. How you allocate your assets.
4. How much your investment returns annually.
5. How low you keep your fees and costs.
6. How closely you keep an eye on taxes.
Six Key Principles of Saving for Retirement
Money.com lists 25 basic things you should and shouldn’t do, if you want to be ‘rich’. How many of these are you following?
It has been a while since I got a traffic ticket, I have to admit that I did have a lot of fun with my 1999 Mustang GT, and it got me into some trouble with speeding tickets. Wish I had read this article back then.
If you've ever been ticketed for speeding or running a red light, you already know that the fine you pay may only be the beginning of your cost.
If it's your second offense, that mistake may very well drain a whopping $700 out of your pocket over the next three years. That's because, on average, a driver's insurance premiums can increase by 25 percent after a second violation.
Most traffic courts rely on the fact that nine out of 10 drivers will just pay their tickets and move on. Established to expedite cases quickly and efficiently, traffic courts serve as vital sources of revenue for many counties.
Read on at Bankrate.com
I am guessing that if you are reading this post, you are not rich. Most people think they are not rich because they don’t make enough money, but in reality, it is our habits and how you treat money.
Thestreet.com’s Jeffrey Strain lists out 10 reasons that hold people back in their quest to becoming financially independent.
1. You Care What Your Neighbors Think: If you're competing
against them and their material possessions, you're wasting your hard-earned
money on toys to impress them instead of building your wealth.2. You Aren't Patient: Until the era of credit cards, it was
difficult to spend more than you had. …3. You Have Bad Habits: Whether it's smoking, drinking,
gambling or some other bad habit, the habit is using up a lot of money that
could go toward building wealth. …4. You Have No Goals: It's difficult to build wealth if you
haven't taken the time to know what you want. …5. You Haven't Prepared: Bad things happen to the best of
people from time to time, and if you haven't prepared for such a thing to happen
to you through insurance, any wealth that you might have built can be gone in an
instant.6. You Try to Make a Quick Buck: For the vast majority of
us, wealth doesn't come instantly. You may believe that people winning the
lottery are a dime a dozen, but the truth is you're far more likely to get
struck by lightning than win the lottery. …7. You Rely on Others to Take Care of Your Money: You
believe that others have more knowledge about money matters, and you rely
exclusively on their judgment when deciding where you should invest your money.
…8. You Invest in Things You Don't Understand: Your hear that
Bob has made a lot of money doing it, and you want to get in on the gravy train.
If Bob really did make money, he did so because he understood how the investment
worked. …9. You're Financially Afraid: You are so scared of risk that
you keep all your money in a savings account that is actually losing money when
inflation is put into the equation, yet you refuse to move it to a place where
higher rates of return are possible because you're afraid that you will lose
money.10. You Ignore Your Finances: You take the attitude that if
you make enough, the finances will take care of themselves. If you currently
have debt, it will somehow resolve itself in the future. Unfortunately, it takes
planning to become wealthy. It doesn't magically happen to the vast majority of
people.
More at TheStreet.com.
There’s some good news for future students, or parents of future students. The most prestigious colleges in the country are making changes to their financial aid programs so the students have to pay less.
Tuition, room and board jump significantly every year. But changes to financial aid policies at many selective colleges and universities are boosting lower- and middle-income students' odds of getting a better deal.
A study notes a rise in binge drinking among college students. CNN's Elizabeth Cohen reports.In addition, there could be a ripple effect. Colleges want to win good students and don't want the competition luring away potential candidates with sweetened aid packages. "There's a certain arms-race mentality, or a fear that there's that mentality," said Karin Fischer, who covers low-income students' access to college for the Chronicle of Higher Education.
CNNMONEY.com story.
Have a bank account? Of course you do. Pay crazy fees for no discernible reason? Check! Thestreet.com’s Jennifer Openshaw tells you how to stick it to your bank.
Fees, fees and more fees.
Ten bucks a month for checking. Fifteen to print checks.
Twenty for a cashier's check. Thirty-five if you "blow it" and overdraw your account -- all assessed repeatedly through the day if more checks come through.And then they have the audacity to charge you $2 for using someone else's ATM.
Fed up? Sure.
Vote with your feet. This one's simple: leave.
Let them know you exist. Moving is one option. Threatening to move is quite another.
Become a better customer. What? Stick it to your bank by becoming a better customer? Hmm, is that logical?
The Consumerist web site shows you how to set up and track a budget in Excel. If you don't have Excel, try OpenOffice.
Are you a budget novice? Constantly overdrafting? Never have enough money to buy what you really want? Wish you could get your shit together? We've got a sexy
free Excel document to share with you.
We are all guilty of having one or more of these. I am still living without a budget, and have not investigated disability insurance. Which ones are you guilty of?
MSN money lists 10 habits that we should get rid of, to improve our financial situation.
- Spending without a budget.
- Carrying a balance on credit cards.
- Ignoring interest rates.
- Not investigating disability insurance.
- Failing to see how little purchases add up.
- Not matching employer's contribution to retirement.
- Waiting until the last minute to fund IRA.
- Paying everyone else, saving "what's left."
- Not managing your investments.
- Getting emotional about your investments.
Continue reading here.
The average tax refund this year is $2500. That's enough for a nice tropical vacation for 2, a cruise in the Bahamas, or a nice big plasma TV. Those are all fun ways to spend your tax refund check. But if you want to be responsible and don't intend to spend it, money.com has some suggestions on what to do with it.
1. Fund your IRA
2. Fund a 529
3. Open a CD
4. Add to your emergency fund
5. Reduce your credit card debt
Money $mart Life has 10 tips to save money for those of you lucky enough to be going on spring break. Some real good stuff, #5 and #10 are my favorites.
1) Get a Hotel Referral
2) Know your Healthcare Coverage
3) Go the Speed Limit
4) Pack the Car
5) Pack the Room
6) Don’t get Stuck with the Bill
7) Check your Rearview Mirror
8) Avoid the Authorities
9) Bring a Cooler
10) Hit the Buffet
Kiplinger magazine has an article in this month's issue with 50 money saving ideas. The ideas were submitted by readers of the magazine and the top 50 were printed. Some really good stuff in there.
My favorites:
Small Change
At the end of every week, I take all the money in my purse (change and bills) and put it in my savings account. On Monday, I start the week fresh. I save an average of $2,000 to $2,500 a year, sometimes more when I do the same with my husband's change. It pays for family emergencies and vacations.Dump the Dorms
When our twins finished their first year of college, I took $10,000 from their college fund and bought a small three-bedroom house. The mortgage payments were less than the dorm or an apartment would have cost for the two of them. They had a third roommate who paid rent, and they saved money on food and laundry. We also had a free place to stay when we visited. When they graduated three years later, I sold the house on my own for $6,000 more than I paid for it. Altogether, I figure we saved about $15,000. -- Joe Marino, Dunlap, Ill.
Online Bargains
I have saved thousands of dollars a year by comparing prices and purchasing over the Internet. When my daughter wanted to buy a pot-bellied stove for her mountain home, the one in the store cost $2,295 -- plus tax, delivery and $400 for installation. When I searched for it on eBay, there it was, almost new, for $560 plus $180 air freight. Installation cost $200. Such a deal! -- Gay Burch, Las Vegas, Nev.
KIP TIP: Before you buy on the Internet, go to PriceGrabber.com, Pronto.com, Shopping.com or Shopzilla.com. Search for a product and you'll get a list of prices from various online retailers. To compare prices at local stores, try Shoplocal.com.
I am. The first thing I do every morning after I enter the building, before I even make it to my desk, is to stop at the Starbucks and get my early morning coffee. There are many of us who do this. I know this for sure, because I see you all in that long line, groggy eyed, waiting to rattle off your order as soon as the Barista asks you for it. We have trained ourselves to believe that this is an unavoidable expense that we choose to live with.
TheStreet.com offers 10 ways to reduce the cost of your daily caffeine fix from Starbucks (SBUX).
1. Don't go
2. Buy retail
3. Make friends
If going to the actual Starbucks shop is part of your coffee equation:
4. Use a gift card
5. Choose Your Location
6. Take your own cup
7. Stay simple
8. Keep those cards
9. Raid the change jar
10. Buy McDonald's coffee
A nice piece with a lot of suggestions on how to get out of debt posted on 'Free Money Finance'.
Look at what you could do without.
Cancel your cable.
Take your lunch and snacks to work.
Stop smoking.
Cut energy costs.
There’s no mystery to getting out of debt. It comes down to disciplining yourself to spend less money than you make on a consistent, long-term basis. And the benefits of living debt-free goes beyond the peace of mind you’ll experience today to knowing that you’ll be passing along a good inheritance for future generations.
So you've been saving money and have put away enough for a 'rainy day fund', and have some left over. The next question usually is what to do with the cash. You could put it in a high-yield savings account like INGDirect or HSBC, put it in bonds, mutual funds, stocks, the options are limitless.
Another thing that factors into the equation is your risk aversion, which is, or at least should be decided by your age and the stage of life you are in.
Fool.com has some ideas on what the best place for YOUR money might be.
More here.
When do you start saving for retirement? For a house? For a car? For your kids education? The most common pool of thought is to start early and contribute often. The government of California takes it a step further, and wants to start when you are born.
The senators want each child to have a savings account, free from income taxes, that the family could keep building upon as the child aged. The money would have to be used for college or continuing education, a down payment on a home, or retirement.
