JCPenney Failed

A recent article on Fox Business discussed the recent mistakes made by JCPenney in ridding the retailer of sales opting for "everyday low prices" like unto Walmart. Their sales have plunged and their stock price has followed.
I used to be JCP biggest fan. I almost shopped there exclusively. I spent hundreds of dollars in their catalog.
In my opinion, it is not the lowering of prices that has sent their customers running for the doors. The past several times I have walked into the store, I've turned around and walked out. It wasn't the prices that turn me off, but the store environment which has changed. This may really sound like an insult, but it's the truth... JCPenney now looks like Sears! Sorry. I can't put my finger on it, but something has changed in the way they are displaying the product and arranging the store.
The BIGGEST thing for me though has been the catalog. I HATE the new catalogs. I won't even look at them now. I just trash them. It's sad because I've spent my entire life studying and browsing the JCPenney catalogs. It's sad. I've divorced myself from JCP. I would gladly kiss and make-up if they'd only reconsider and come back to me!

Pending Student Loan Crisis

Re-thinking the advanced education decision... For years we have encouraged people to get a degree and that any degree was of value. Students went into debt for degrees which offered no real return on the cost. Now they have a problem. Prudence is the key when deciding whether or not to borrow money for an advanced degree. 1) Can I afford to do it without incurring any debt, 2) if I go into debt, does the degree fairly ensure I can pay off the debt quickly? In addition, lenders must take the responsibility to lend money for student loans to responsible people with a good plan. Similar to the housing crisis in recent years, lenders are giving money to everyone -- never a sound business decision.

Free Courses through BYU

Are you aware that BYU has FREE courses (not for credit) available online?

Go to www.byu.edu > courses online > free courses to see about 50 courses you can take online through BYU.

For this blog I recommend: Marriott School of Finance- Personal Finance AND Student Finance under the category PERSONAL AND FAMILY FINANCE.

Now GO LEARN SOMETHING!

25 Ways to Waste Your Money

25 Ways to Waste Your Money
by Erin Burt, Contributing Editor
Wednesday, March 2, 2011

www.kiplinger.com

Plug your financial leaks, and pocket the savings.

Has your budget sprung a leak?

Nearly everyone has spending holes. And as with other kinds of leaks, you may have hardly noticed them. But those small drips can quickly add up to big bucks. The trick is to find the holes and plug them so you can keep more money in your pocket. That extra cash could be the ticket to finally being able to save, invest, or break your cycle of living from paycheck to paycheck.

Here are 25 common ways people waste money. See if any of these sound familiar, then look for ways to plug your own leaks:

1. Carrying a balance. Debt is a shackle that holds you back. For instance, if you have a $1,000 balance on a credit card that charges an 18% rate, you blow $180 every year on interest. Get in the habit of paying off your balance in full each month.

2. Overspending on gas and oil for your car. There's no need to spring for premium fuel if the manufacturer says regular is just fine. You should also check to make sure your tires are optimally inflated to get the best gas mileage. And are you still paying for an oil change every 3,000 miles? Many models nowadays can last 5,000 to 7,000 miles between changes, and some even have built-in sensors to tell you when it's time to change the oil. Check your manual to find the best time for your car's routine maintenance.

3. Keeping unhealthy habits. Smoking costs a lot more than just what you pay for a pack of cigarettes. It significantly increases the cost of life and health insurance. And you'll pay more for homeowners and auto insurance. Add in various other expenses, and the true cost of smoking adds up dramatically over a lifetime -- $86,000 for a 24-year-old woman over a lifetime and $183,000 for a 24-year-old man over a lifetime, according to "The Price of Smoking" (The MIT Press).

Another habit to quit: indoor tanning. There is now a 10% tax on indoor tanning services. As with cigarettes, the true cost of tanning -- which the World Health Organization lists among the worst-known carcinogens -- is higher than just the price you pay each time you go to the salon.

4. Using a cell phone that doesn't fit. How many people do you know who have spent hundreds of dollars on fancy phones, and then pay hundreds of dollars every month for the privilege of using them? Your phone is not a status symbol. It is a way to communicate. Many people pay too much for cell phone contracts and don't use all their minutes. Go to BillShrink.com or Validas.com to evaluate your usage and see if you can find a plan that fits you better. Or consider a prepaid cell phone. Compare rates at MyRatePlan.com.

5. Buying brand-name instead of generic. From groceries to clothing to prescription drugs, you could save money by choosing the off-brand over the fancy label. And in many cases, you won't sacrifice much in quality. Clever advertising and fancy packaging don't make brand-name products better than lesser-known brands.

6. Keeping your mouth shut. No one wants to be a nuisance. But by simply asking, you may be able to snag a lower rate on your credit card.

When shopping, watch for price discrepancies at the cash register, and make a habit of asking, "Do you have a coupon for this?" You might even be able to haggle for a lower price, especially on seasonal or perishable items, floor models or big-ticket purchases. Many stores will also match or beat their competitors' prices if you speak up. And try asking for a discount if you pay cash or debit -- this saves the store the cut it has to pay the credit-card company, so it may be willing to give you a deal. It doesn't hurt to ask.

7. Buying beverages one at a time. If you're in the habit of buying bottled water, coffee-by-the-cup or vending-machine soda, your budget has sprung a leak. Instead, drink tap water or use a water filter. Brew a homemade cuppa joe. Buy your soda in bulk and bring it to work. (Better yet, skip the soda in favor of something healthier.)

8. Paying for something you can get for free. There's a boatload of freebies for the taking, if you know where to look. Some of our favorites include restaurant meals for kids, credit reports, software programs, prescription drugs and tech support. You can also help yourself to all the books, music and movies your heart desires at your local library for free (or dirt cheap).

9. Stashing your money with Uncle Sam rather than in an interest-earning account. If you get a tax refund each April, you let the government take too much money in taxes from your paycheck all year long. Get that money back in your pocket this year -- and put it to work for you -- by adjusting your tax withholding. You can file a new Form W-4 with your employer at any time.

10. Being disorganized. It pays to get your financial house in order. Lost bills and receipts, forgotten tax deductions, and clueless spending can cost you hundreds of dollars each year. Start by setting up automatic bill payment online for your monthly bills to eliminate late fees and postage costs. Then get a handful of files to organize important receipts, insurance policies, tax documents and other statements.

Finally, consider using free budgeting software such as Mint.com to see exactly where your money goes, making it much harder for you to lose track of it.

11. Letting your money wallow in a low-interest account. You work hard for your money. Shouldn't it work hard for you too? If you're stashing your cash in a traditional savings account earning next-to-nothing, you're wasting it. Make sure you're getting the best return on your money. Search for the highest yields on CDs and money-market savings accounts. And consider using a free online checking account that pays interest, such as ones offered by Everbank and ING Direct.

Your stocks and mutual funds should be working hard for you, too. If they've been lagging behind their peers for too long, it could be time to say goodbye. Learn how to spot a wallowing fund or stock.

12. Paying late fees and missing deadlines. Return those library books and movie rentals on time. Mail in those rebates. Submit expense reports on time for reimbursement. And if you make a bad purchase, don't just stuff it in the back of the closet and hope it goes away. Get off your duff, return it and get your money back before you lose the receipt.

13. Paying ATM fees. Expect to throw away nearly $4 every time you use an ATM that isn't in your bank's network. That's because you'll pay an ATM surcharge, and your own bank will hit you with a non-network fee. Consider switching to a bank, such as Ally Bank, that doesn't charge ATM fees and reimburses you for fees other banks charge. Another way to avoid fees if there's not an ATM in your bank's network nearby is to get cash back when you make a purchase at the grocery store or drugstore.

14. Shopping at the grocery store without a calculator. Check how much an item costs per ounce, pound or other unit of measurement. When you comparison-shop by unit price, you save. For example, if a pack of 40 diapers costs $13, that's 33 cents per diaper. But if you buy a box of 144 diapers for $35, that's 24 cents per diaper. You save 27%! (Of course, buying more of something only saves money if you use it all. If you end up throwing much out, you wasted money.)

15. Paying for things you don't use. Do you watch all those cable channels? Do you need those extra features on your phone? Are you getting your money's worth out of your gym membership? Are you taking full advantage of your Netflix, TiVo and magazine subscriptions? Take a look at what your family actually uses, then trim accordingly.

16. Not reading the fine print. Thought you were being smart by transferring the balance on a high-rate credit card to a low-rate one? Did you read the fine print, though? Some credit-card companies now charge up to 5% for balance transfers. Also watch out for free checking accounts that aren't so free. Some banks are starting to charge fees unless you meet certain criteria.

17. Mismanaging your flexible spending account. For some people, that means failing to take advantage of their workplace FSA, which lets employees set aside pre-tax dollars for out-of-pocket medical costs. Other people fail to submit receipts on time. And the average worker leaves $86 behind in his or her use-it-or-lose-it FSA account each year, according to WageWorks, an employee benefits provider.

18. Being an inflexible traveler. You'll save a lot of money on travel if you're willing to be flexible. Consider traveling before or after peak season when prices are lower. Or search for flights over a range of dates to find the lowest fare. Booking at the last minute also can save you money because hotels and airlines slash prices to fill rooms and planes. And flexibility pays off at blind-booking sites, such as Priceline or Hotwire, which offer deep discounts if you're willing to book a room or flight without knowing which hotel or airline (or other details about the flight) you're getting until you pay.

19. Sticking with the same service plans and the same service providers year after year. Hey, we're all for loyalty to trusted service providers, such as your bank, insurer, credit-card company, mutual fund, phone plan or cable plan. But over time, as prices and your circumstances change, the status-quo may not be the best deal any more. Smart consumers are always on the lookout for bargains.

20. Making impulse purchases. When you buy before you think, you don't give yourself time to shop around for the best price. Take the time to compare prices online, read product reviews and look for coupons when appropriate.

Make it a policy to give yourself a cooling-off period in case you're ever tempted to make an impulse purchase. Go home and sleep on the decision. More often than not, you'll decide you don't need the item after all.

21. Dining out frequently. Spending $10, $20, $30 per person for dinner can be a huge drain on your wallet. Throw in a $6 sandwich for lunch every day and you've got quite a leak. Learning to cook and bringing your lunch from home can save a couple hundred bucks each month. When you do go out, consider getting carry-out instead of dining in (you'll save on the tip and drink), skip the overpriced appetizer and dessert, and search the Web for coupons ahead of time.

22. Trying to time the stock market. In trying to buy low and sell high, many people actually do the opposite. Instead, employ the simple strategy of "dollar-cost-averaging." By investing a fixed dollar amount at regular intervals, you smooth out the ups and downs of the market over time. If you take out the emotion and guesswork, investing can become less stressful, less wasteful and more successful.

23. Buying insurance you don't need. You only need life insurance if someone is financially dependent upon you, such as a child. That means most singles, seniors or kids don't need a policy. Other policies you can probably do without include credit-card insurance (better to use the premium to pay down your debt in the first place), rental-car insurance (most auto policies and credit cards carry some coverage), mortgage life insurance and accidental-death insurance (a regular term-life insurance policy will do the trick).

24. Buying new instead of used. Talk about a spending leak -- or, rather, a gush. Cars lose 20% of their value the moment they're driven off the lot and 65% in the first five years. Used models can be a real value because you can get a car that's still in fine working order for a fraction of the new-car price. And you'll pay less in collision insurance and taxes, too.

Cars aren't the only things worth buying used. Consider the savings on pre-owned books, toys, exercise equipment, children's clothing and furniture. (Of course, there are some things you're better off buying new, including mattresses, laptops, linens, shoes and safety equipment, such as car seats and bike helmets.)

25. Procrastinating. Time is an asset money can't buy. Start investing for retirement as soon as possible. For instance, if a 40-year-old saves $300 a month with an 8% return per year, he'll have $287,000 by age 65. If he had started saving 15 years earlier at age 25, he'd have more than $1 million.

___

Best and Worst Dollar Store Buys

Best and Worst Dollar Store Buys

By Erin Burt, Kiplinger.com

When you're trying to save money, the dollar store can seem like a magical place. Abracadabra, everything's a buck or less! But just because something's inexpensive doesn't make it a good buy at such retail establishments.

Dollar Store Deals

We went shopping to find out what's a good deal at the dollar store, and what's not:

Party Supplies: DEAL

Everything from party invitations to decorations to balloons are worth buying at the dollar store. For instance, foil balloons easily run from $3 to $8 a pop at party-supply stores, gift shops and supermarkets. But you can get them for $1 each -- helium included -- at the dollar store.

Goodie bags, party favors and color-coordinated paper plates, napkins, cups and plastic cutlery are also a good buy.

Cleaning Supplies: DEAL

According to the Good Housekeeping Institute, the cleaners you buy at the dollar store work just fine. You probably won't find many name brands, but the ingredients are similar -- though perhaps more diluted. For everyday cleaning, they should do the trick. (For tougher cleaning jobs, you may have to spring for something more heavy-duty.)

You can also get a good deal on rubber gloves, sponges, and scrub brushes too.

Vitamins: NO DEAL

Don't scoop up your vitamins at the dollar store. Consumer Reports found that dollar-store multi-vitamins didn't always have the amount of nutrients claimed on the label. And others didn't dissolve fast enough to be absorbed by the body. You may be better off getting vitamins from a well-known store brand, such as Rite Aid, Walgreens or CVS.

Greeting Cards: DEAL

Greeting cards are nice, but are they really worth $4? We think it's the thought or sentiment that counts, not what you spend. Our local dollar store has a big selection of cards for every occasion, at 50-cents each. They're good-quality, too, so the recipient won't even guess that you scrimped.

Basic School Supplies: NO DEAL

While the dollar store has decent deals on many school supplies, we didn't find them to be much better than the prices at Walmart.

For pencils, notebooks, highlighters, crayons, glue sticks, scissors, sticky notes and more, it's best to stock up when they go on sale during back-to-school season (August-September). The rest of the year, you can hit either the dollar store or Walmart with confidence.

Seasonal or holiday items, such as Valentine's day, Easter eggs and Christmas tree decorations: DEAL

Whether you need to stuff Easter baskets or Valentine's day boxes, or you simply want to deck the halls for your favorite holiday, you might save a few bucks at the dollar store.

Seasonal paper plates and napkins (i.e. with pumpkins or Santa Claus on them) are also a good deal -- we found packs of 20 for $1. On decorations, bargains can be hit-or-miss and subject to opinion. For example, we found a set of icicle ornaments that looked beautiful on our tree this year, but the imitation pine wreaths looked too cheap and scraggly for our taste.

Pregnancy Tests: DEAL

Babies are expensive from the very beginning. The cheapest pregnancy test at our local Walgreens cost $8. But you can get one at the dollar store for a buck. Both are 99% effective, both test for hormone levels with similar sensitivity. And at $1 a pop, you can afford to test and re-test as much as you like if you simply don't believe your eyes.

Aspirin, ibuprofen and other medications: NO DEAL

Consumer Reports warns that aspirin and other medications may be left on the shelf past their expiration dates. It also points out that some labels may not say where the medicine was manufactured.

While there haven't been any safety concerns about dollar-store meds, generic aspirin from your local pharmacy or supermarket is probably a better bet -- and may not cost too much more.

Gift Wrapping Supplies: DEAL

You can get a 20-foot roll of gift wrap at the dollar store for a buck, while you'll pay at least three times that at big-box and party-supply stores. Gift bags cost up to $5 at other stores, depending on size. But at the dollar store, all sizes are $1. We also found huge savings on tissue paper, up to 75% off prices elsewhere. And don't forget the Scotch tape!

Toys: NO DEAL

It's tempting to buy toys for only $1. But there's definitely a trade-off in quality. Many dollar-store toys are cheaply made and they can be dangerous when they break.

Baby toys should generally be avoided because they will go directly into the mouth, and dollar-store toys may have unsafe levels of lead and phthalates, which are a class of chemicals found in soft plastics.

Canned food and other pantry items: NO DEAL

You may be able to get these cheaper elsewhere. For example, our nearby dollar store sells Green Giant canned vegetables and Goya beans for $1 a can. But we found the exact same items at Walmart for less, and generic brands at even bigger savings. Dollar-store cake and brownie mixes come in smaller packages so watch the unit price. Also, you should keep an eye on the expiration dates on food at the dollar store. They may be near or past their freshness date.

Batteries and Electronics: NO DEAL

Consumer Reports warns that dollar store electronics and extension cords may have fake UL labels and could be unsafe. It's better to spend a little extra for quality and safety. Also, cheap batteries may be prone to leakage, or may not run your gadgets as long as pricier brands. Many dollar stores sell carbon-zinc batteries which are less efficient than the alkaline variety.

Cooking and Dining Accessories: DEAL

We found spoons, spatulas, cheese graters, ice cream scoops and more at the dollar store for 50% to 90% off the prices at Target and Walmart. We also spotted wine glasses, dining plates and flatware for less. Almost anything is a good buy in the kitchen department, with the exception of knives, which may be flimsy or dull.

Word of the New Year

Do you know how bad you can feel when you wake up on New Years Day and the Holidays are over and you realize how much money you spent and how much you still owe?
If that is you, I want you to imagine the antithesis. A burden-less, free feeling of paying for Christmas with cash is... should I say, joyous!
If you find yourself in the former situation, it's time to make a plan. Plan today to pay for last year ASAP.
If you have any consumer debt, pay it off as quickly as possible. Sit down and make a practical budget, putting all your discretionary income towards your debt. When you get that all paid off, then start saving that towards next year's Christmas.
When you get to the holidays next year and you have consumer debt left over from last year DO NOT SPEND another cent on Christmas gifts.
Believe me when I say that the recipients of your gifts would rather you be free of debt than spend dollars and cents on gifts they can probably go without. You can give gifts of love and time instead. Think of service-oriented gifts instead. Babysitting for young parents, housekeeping for aging parents, and time camping out with your children will have far-reaching benefits and memories that will last a lot longer than any trinkets, toys, or things that will break, get lost, and wear out.
Plan now and plan well.
So the word of the New Year... I already forgot. haha. But you get my drift. Maybe the word was SAVE, maybe it was PLAN, maybe it was WISDOM. I don't know, just pick one and live with it. You will be happier come this time next year.

First Person: Why I Never Borrow Money

This is a very good article I found.

Steve Thompson
Associated Press
October 22, 2010

Like many 20-somethings, I made a lot of financial mistakes before I finally grew up. Nearly every dollar I spent through eight years of college and law school was borrowed before I actually earned the money to pay for it. Between student loans and credit cards, I graduated with significant debt. And the crushing weight of that debt is why I never borrow money now.

Debt Leads to Depression

This is not a scientific fact that I've verified, but rather a conclusion I drew after crawling out of debt for more than 10 years. Every time a bill arrived in the mail or someone called to ask why a payment was late, I grew more withdrawn and disheartened. I felt like a tire with a slow leak, and I often wondered if it would ever end. To borrow money is to impose upon yourself an unnecessary burden -- both financially and emotionally.

Debt Becomes a Habit

Safe within the comfortable bubble of college, the real world never intruded to remind me that borrowing money would one day lead to consequences. It was painfully easy to pull out my credit card to make a purchase or to apply for yet another student loan. The money I earned went directly to pay for the debt I had incurred, though it was never sufficient to cover all of it. It became a habit for me to use my income to pay off debt rather than to fund the necessities of life.

Debt Provides False Security

Because I knew that I had a credit card to pay for the things I wanted, there was no reason for me to stay in my dorm or apartment rather than go out with friends or to put off a purchase until I had saved the money to buy it. During those years in school, I never felt financially strapped. Then, upon graduation, the money I'd borrowed became an albatross I thought I'd never shake.

Debt Creates Stress

This seems like a given, especially if you've ever accumulated a massive amount of debt, but when you borrow money, stress is a constant companion. For years, I lived in fear of losing my home and everything else. I worried about whether I'd be able to cover utilities after paying on my debts, and I was always looking for ways to make a few extra dollars. It's no way to live.

Saving Is Rewarding

Now, when I want to buy something expensive, I save my money. My wife and I have a separate savings account that is devoted to vacations, electronics, conferences, and anything else we want to do. We don't borrow money to obtain the things we desire; we save for them until we can afford them. And it's far more satisfying than if we just plunked down our credit cards.

Saving Makes You Think

When I was borrowing money hand over fist, my purchases were never carefully considered. I took the caveman approach to spending money: Want, Find, Buy. Now that I never borrow money, every purchase gets run through my mind many times during a period of weeks or months. Often I decide it isn't worth the effort, and my money goes toward more worthy purchases.

There Are Exceptions

What if my child needed an expensive medical procedure for which I didn't have the cash? I'd borrow money. What if my car broke down and I didn't have the money to fix it? I'd probably borrow money.

There are exceptions to every rule. But my goal is to continue saving money until I've stowed enough cash in the bank to wipe out all those exceptions. In my opinion, there is no greater security on earth than the knowledge that I don't have to borrow money, ever, to take care of my family.

Wisdom in Food Storage

Storing food for emergencies is not only wise and brings peace of mind, but is also a hedge against inflation and protection against shortages.
Example: Two years ago I could buy a 15 oz. can of pumpkin on sale for $.79. Canned pumpkin has a shelf life of 2.5 to 3 years. If I had purchased enough pumpkin two years ago for use 2-3 years out, 1) I would have had pumpkin for the holidays last year during the shortage, 2)I wouldn't be spending $1.35 for a can to use this year during the continued shortage.
Hopefully the price will come down next year; it's not likely. But if it doesn't, I am buying enough at $1.35 that I will use next year in case it's $2.00! You may ask, "Well, that's just dumb, because what if the price comes back down? You will have wasted all that money"? When was the last time you saw a product drop 50% in price? I'm willing to gamble it won't!

Live without extravagance

Warren Buffet, one of the richest men in THE WORLD, lives in a five-bedroom house he bought in 1958 in Omaha, Nebraska for $31,500.
I don't know him well enough to say he doesn't live without extravagance in other aspects of his life, but I admire the aforementioned fact.
In today's world, people seem to be out to get as much as they can as quickly as they can. We used to keep up with the Jones and now we have to one-up the Jones.
I believe that the Lord blesses us with all things. I also believe we are accountable before Him for the way we use what He has blessed us with.
Do we use our assets for extravagance? To prove something to ourselves or others? To live only in the moment and give no thought for tomorrow? To help only ourselves, giving no thought for "our neighbor"?
At the judgment bar of God, when He gets out our financial/fiscal records, where will we stand? Did we stand in a great and spacious building and point fingers at others who had less than we did? Did we wear fine-twined linen with little children in our midst wore rags and no shoes or winter coats? Did we pay our tithes and offerings? Did we cheat our employer? Our neighbor? Our creditor?
Do not judge others, only yourself? Where do you stand?

Inflation in the near future??

It is likely that inflation and higher interest rates may be coming. Obama has flooded the economy with cash and these two results are likely to happen as a result. One as a consequence of more money in the system to buy the same number (or less) of goods and one is a consequence of trying to reign money back into reserve.

Do you have major purchases in your near future? You may be better off now to go ahead and make the purchase.

For an example: we have a very old furnace, air conditioner, and water heater. We know they will not last much longer. Every summer we hope and pray that the air conditioner will last one more season.

If we buy now we can take advantage of low prices, low interest rates and a tax credit.

If we wait until we have a problem and are forced to replace them at the last minute, we may have to buy them with inflated prices at high interest rates. In addition, the tax credit ends this year.

We do not have the cash now, and likely will not in the next couple of years. We are better off purchasing them now however and saving ourselves the headache of dealing with an urgent need and paying more due to inflation at a higher interest rate.

Are you going to need a car? Now may be the time.

Christmas Giving

If you watch the news, the buzz word for the week was BLACK FRIDAY. I don't like that term in the first place, but whatever. More importantly, all of us are trying to figure out how much we are going to spend on Christmas. This is not rocket science. How much did you save? How much do you have?

The average family spent just under $1800 last year. I guess we're average. However, it's NEVER wise to use debt as a way to finance gift-giving. I would feel just terrible if I knew you had gone into debt to buy me something I probably don't need in the first place.

You don't have to (and shouldn't) spend alot on gifts. The important thing is the thought in the giving, not giving just to give. Remember the reason for giving. We give as a symbolic gesture because HE gave.

Ideas for Mom and Dad under $20:
Wonderful scented candle (with a lid)
Lotion (scented or unscented)
Ear rings (pierced ears)
itunes card (we might be old, but we're not dead)
a tie
a scarf
stamps
restaurant gift cards
a nice flashlight
umbrella
measuring spoons
DVD/CD
Wii points
a handbag (with a cell phone pocket)
a wallet
pens
assorted greeting cards
magazine subscription

Credit Card Magic

Having a credit card can be a valuable asset in times of emergency. It also allows you to rent cars and hotel rooms. If used properly you can be rewarded in other ways.
First, don't use credit cards to borrow money, which is essentially what you do when you buy things you cannot pay for on that billing cycle (borrow money from a bank when absolutely necessary and pay far less interest). Use your card only for purchases you can pay for in full when the bill comes due. Never allow yourself to pay interest or late fees on a credit card.
When we were first married thirty years ago we decided we would reap the rewards of having a credit card without paying the penalties. When we use our credit card we record the transaction as though we had written a check. Consequently our bank balance shows our true balance. Instead of recording a check number place a CC in the space. Then when the bill comes, compare it with your checkbook registry to ensure you have recorded everything, checking off each transaction as cleared, and write a check for the entire amount. You won't need to subtract that check from your balance because you have done so throughout the month.
Following this plan you can build good credit and enjoy the added benefits offered from banks, i.e. cash back or airline miles (our favorite).
We do have a $50 fee each year for our credit card but we earn an airline ticket about every five months. Two airline tickets for $50 is quite a bargain.

Never late!

If you don't have your bills set up for automatic payment (which I highly recommend), then sit down and write a check the very day you get the bill in the mail. Mail it out that very day, or the next. You will never forget to pay a bill and will never pay unnecessary late fees.

Recipe for debt

When your yearnings exceed your earnings.

The Gift

The following is a story I read on www.foxnews.com today.

There are some really nice people in the world.

DALLAS —

A Texas woman went to a housing auction distraught about the prospect of watching strangers bid on her foreclosed home.

Then one of those strangers bought it back for her.

Now Tracy Orr can return to her Pottsboro home, making payments to the woman who unexpectedly and impulsively bought it for her.

"It means so much to all of us," Orr told Dallas television station WFAA. "It's not just a house."

Marilyn Mock said she was acting on instinct on Saturday when she decided to buy a house she had never seen for a woman she had never met. Mock was at the foreclosure auction to help her 27-year-old son bid on a house when she struck up a conversation with Orr, who was crying about losing her home.

Orr had bought the house for $80,000 in 2004 but fell behind on the payments. She lost her job a month after taking out the loan, and earlier this year she lost the house. On the spot, Mock decided to buy it, eventually bidding $30,000.

"She didn't even know if I had a job or was a nut case," Orr said in a story for Wednesday's online edition of The Dallas Morning News. "She didn't even see a picture of the house."

Mock told a crying Orr she could stay in the house, making payments to her instead of a bank.

"She needed help. That was it," Mock told the newspaper. "I just happened to be there and anybody else would have done the same thing."

Orr said she hopes others will do as Mock did.

"More than my house, she gave me something inside, and that's more important than material or financial things," she said.

Level payments

I have found the best thing for my budget is to apply for the "level payment" or "average payment" plans through my utility companies. I am better able to anticipate how much money I should budget for a particular utility. Check your utility bills or call to see if this option is available for you. What they usually do is average the past twelve months. Your bill is usually within a few dollars every month. My electric bill is around $130/mo., and my natural gas is around $122/mo.. The other thing you can do is during the lowest bills of the year (natural gas in summer, electric in winter) look at the past twelve months and do your own averaging and set aside that amount every month for the future. This takes more discipline so I prefer to pay the company.
The other thing I do is set up payment directly so I'm never late. Some people worry about the company messing up someday when you want to stop. We have moved several times and changed long distance service several times and I've never had a problem. For me, it's worth it, especially if you are forgetful and often pay late which is bad for your credit score.

Budget

A business would never operate without a budget and neither should a family.
At the beginning of each new month I sit down and estimate income and outflow.
There are lots of budgets to be found online or make up your own like I did.
Some items are fixed amounts like the mortgage payment, car payment, insurance payments, etc.. Some items are not fixed like groceries, meals out, even some utility bills.
If you have never budgeted before you may want to start out by tracking your spending for a month and see where your money goes. From that point you can figure out what amounts are prudent for a particular category.
Only when you know where your money goes can you make good decisions are budgeting your money. The important thing is to start today and be consistent.

Wants and Needs

When setting your financial priorities, always ask the question -- "Is this a want or a need?" Getting something you "want" is NOT a bad thing IF you have the CASH to spare.
NEVER GO INTO DEBT FOR WANTS!! Only go into debt for needs when necessary. Try to anticipate what your future needs will be.
When your budget is tight (and whose isn't?) your priority should be on those things that you NEED. Please don't rationalize what your needs are. Maybe you NEED a computer, but you might be able to get by with a less-than-the-greatest model. Maybe you NEED a washing machine, but you might be better off buying one without all the latest "bells and whistles". Maybe you need a new pair of shoes, but shouldn't look at the pair that's $100!! If you have the means, by all means go ahead if you wish, but beware, that extra $600 for the nicer washing machine could go a long way to buying that new computer AND the new shoes.
Word to the wise: JUST THINK BEFORE YOU SPEND!

Financial Priorities

Sit down together as a couple and set your financial priorities. When you are tempted to purchase something (anything), ask yourself if this purchase falls into the perimeters of your family plan. You can waste alot of money buying things you really don't need and you will look back and ask "What did we spend all that money on?"

Food

See the blog "What to store and how to eat what you store" for tips on acquiring and using your food storage.