Are you throwing your net worth into the wind?

Mitt Romney wants you to ask yourself whether you are better off now than you were four years ago. Obviously, he is trying to get elected, but it is a good question. Not simply because president Obama has been the steward of a failing economy, but as a way to see if you are one of the millions that wastes large amounts of money each year. To find out, here are ten common ways that Americans throw their net worth to the wind.

10 Ways consumers piddle away their net worth

• Banks raked in $7 billion in ATM fees last year. Surely, you can find an in-network ATM. Another suggestion is to shop around for a bank or credit union that will waive or reimburse ATM fees in exchange for a direct deposit or other consideration from you.
• Collectively, Americans spend an average of $12 billion on traffic fines each year. Do you really need to give the government more money than they already collect from your paycheck?
• Do you feel lucky? $31 billion went to lottery sales in 2010.
• $29 billion went to candy makers. Look for more creative ways to say you are sorry and healthier ways to snack.
• $44 billion was spent on tobacco products. That amount does not include the health care costs associated with tobacco use.
• $50 billion was spent on booze. Again, this does not include the costs of a DUI or health issues from drinking excessively.
• $49 billion was wasted in credit card interest last year alone.
• Didn't get enough of the hose on a lottery ticket? Americans spent $125 billion at casinos last year. No wonder they comp so many rooms.
• A total of $146 billion went into the wind in the form of wasted energy. You can find plenty of suggestions on how to reverse that trend at energystar.gov.
• On average, Americans throw $165 billion in food into the trash each year. For many it is the habit of buying on impulse that leads to having food expire at home. Writing a list, never shopping hungry, and using coupons are all easy ways to lower the amount of food that you throw away each week.

Even if you do not stop your bad habits, maybe you can cut back on them. After all, we all have a vice, but curbing it could save you hundreds, if not thousands, each year. Get control of your habits, then ask yourself if you are better off than you were four years ago.

This guest post has been provided by Keystone Auto Loans, a company that helps people get approved for auto financing despite high risk credit situations such as bankruptcy and repossession. Go here to learn more.

When transaction receipts and records become redundant

Image attribution: FreeDigitalPhotos.net; standard royalty free license

Knowing how long to keep household records and receipts avoids problems such as inaccurate tax filings, inability to reconcile checkbooks or cash-flow, and inefficient debt management. Some documents are needed for a lifetime, others expire in months. In any case, being able to identify the functionality, validity and utility of household records and receipts is key in knowing how long they are needed.

One way to make individual or household archival decisions is with the help of a record-keeping reference guide. For example household record tips from the Ohio State University suggest warranties should be kept for as long as the corresponding property is owned, but recommend income records only be kept for six years. However, knowing the reasoning behind such references is also helpful in evaluating the accuracy of record-keeping decisions because individuals can have different record requirements.

Verification

Household records and receipts are used to document transactions, evaluate credibility, and verify tax claims. They can also protect and confirm identity, legal rights, health records and ownership. If the records are expired, invalid or so old they are no longer given any legal or financial credence, then there is a good chance they won't be needed for documentation and verification purposes. However, some household records such as birth-records never expire and should generally be kept for as long as one is alive.

Statutes

In terms of financial records, statutory limitations determine how long a particular financial transaction, debt or income can be legally enforced. These statutory limitations range between 2-15 years depending on the state, type of agreement and debt. For example, according to Nolo, in Kentucky a lawsuit on debt agreed to in writing can be filed for up to 15 years. However, the majority of states limit legal action to 2-6 years for the same contractually defined debt. Each states' specific allowable statutory time limitations and provisions can be obtained via state code or websites such as Nolo and CreditCards.com.

Taxation

The federal government also has a statute of limitations on money owed to it. In regard to taxes, the Internal Revenue Service (IRS) generally has up to ten years to collect taxes and 3-6 years to assess additional taxes per the online CPA Journal. Moreover, also per the CPA Journal, the amount of extra tax assessed affects how long the IRS has to make that determination. State taxes also have collection limitations; after determining what those limitations are and if they apply to particular tax situations, then a determination of the redundancy of tax records can be made.

System

Organizing household records is a skill because if it is done well, it can provide quick access to a variety of valid documentations for multiple tasks such as filing taxes, applying for loans, documenting assets, confirming identity etc. With digital record-keeping, retaining useful financial records and copies of important documents for decades is more feasible, but not necessarily practical. This is because too many records can affect computer processing speed and those records may also be redundant in the sense they cannot serve a functional purpose.

Why adults aged 30 and older are prime advertising targets

The Gallup Management Journal finds adults between 30-64 comprise the most affluent people in America. Older adults also comprise an increasingly larger amount of the population and have trillions of dollars in spending capacity. These and other factors have caused advertisers to rethink how they approach American consumers in order gain a greater amount of return on advertising dollars.

Complete article link: http://www.helium.com/items/2157835-advertising-to-older-adults

How to Manage Unsecured Credit Cards

Image attribution: U.S. Department of Justice; US-PDGov

To manage an unsecured credit card it helps to first know the five factors that go into your credit score. The Fair Isaac Corporation, creator of the FICO score claims credit history, types of credit, amount of credit, new credit, and credit history all provide a basis for credit calculations. Unsecured credit cards don't have to mean sky high debt or a bad credit rating. Managing unsecured credit cards well uses the same good credit habits that one would use to raise a credit score.

Managing unsecured credit cards well also avoids the more negative consequences of credit card use; this implies there are risks associated with using these cards. Specifically, these risks include interest rate risk, and debt risk. Understanding what credit cards are for is helpful in managing them well; for example if unsecured credit cards are thought of as lifestyle loans rather than an alternative form of payment, chances the cards will be used in excess may increase by virtue of credit intent.

• Debt to credit ratio

As with secured credit cards and when building credit score, using less than 40 percent of the total available balance is usually a good idea. For example, if you have three unsecured credits with credit limits of $1,500 $3,500 and $5000, the total available credit is $10,000. Using $4000 or less of this limit will ensure a debt to credit ratio of .4 or 40 percent. According to the Fair Isaac Corporation, the amount you owe on credit cards affects up to 30 percent of your FICO score.

• Use of unsecured credit

Regular use of unsecured credit cards also builds credit if proper payments are also made on that use. If using credit is not a preference that you feel comfortable with, only use credit enough to build credit as avoiding having to use or rely on credit is often a good idea anyway. Not using credit cards at all shows creditors you are not a low risk or potentially profitable client and may hamper obtaining credit in the future.

• Purchase constructively

What is spent using unsecured credit cards can affect how well you manage them. For example, if you use a credit card to buy a tool or piece of equipment used in a job or business, then that purchase has a potential return on investment (ROI). This ROI may exceed the cost of credit used, if any.

• Make payments

Making payments on your unsecured credit cards is ideally done in full and consistently. On time payments avoid late fees and being reported to credit bureaus. Payment history affects up to 35 percent of your FICO credit score. Making regular payments also demonstrates fiscal responsibility, the capacity to stay within a budget and an understanding that the credit is a temporary loan rather than debt with optional repayment.

• Ask for credit

At some point after using unsecured credit cards for a while you may want to request higher balances to increase your debt to credit ratio. This can increase your credit score and improve interest rates on loans. Asking for more credit should generally not be done until responsible credit card use has been established as measured by the debt to credit ratio and after enough time has passed where this ratio has been maintained i.e. at least a few months.

Source: http://bit.ly/ggXQt (MyFico)

Things You Should Never Buy New

Things you should never buy new can be bought used at no great loss or don't need to be bought at all. Some new things either cost too much, don't taste as good or are just about to get old anyway. For example, that new cell phone made for the year you're in, but when the date is December 31st. Here are some more things that you should never buy new.

• Cabernet Sauvignon

Cabernet Sauvignon is a hardy grape that seems to grow everywhere and anywhere. That might be why it is often abrasive just after it's first produced. This wine and some others do age well and taste better with time because the flavors can soften, become richer and smoother on the palette.

• Oxygen

New Oxygen simply isn't necessary. All the oxygen molecules you breath are used, and one or two of the oxygen molecules you are breathing right now might even be the same ones breathed by your ancestors or any number of great and famous people in world history. For that matter, why buy oxygen at all unless you're going to space or scuba diving? Even then, the oxygen doesn't have to be new.

• Pickles

Pickles taste much better after they have been sitting in their brine or pickle juice for some time because they had time to absorb the flavors. A newly pickled pickle might not even taste like a pickle until enough time has passed for the pickle to brine. Pickles aren't just cucumbers either, many vegetables can be pickled and taste better after time.

• Blue Cheese

Things that need to ferment, such as blue cheese should never be purchased new because they won't have reached their full potential as a food product. Beer, and cider are things that need to ferment. If they are newly fermented they may be ok to eat or drink, but in the case of blue cheese, it's better to buy it aged and while it still edible.

• Wisdom

Wisdom by its very nature is generally time tested and very often free. Anything that's sold as a wise choice should pass the wisdom test. New wisdom is really just smart thinking, and smart thinking that is used over time becomes wisdom. Some questions to ask when told a purchase is a wise choice are: Is it really wise? Why is it wise? And which piece of wisdom is it referring to?

How to Surive Shopping at the Mall

Don't go to the mall! The "mall mauling" is that stressful, heavily populated, and slow time of year in which hundreds and thousands of Christmas shoppers converge upon the malls to achieve the cherished goal of buying presents for loved ones. This mauling doesn't have to be a terrible experience and there are ways around it. A few of those ways involve just a little time and thought to how one should go about doing the Christmas shopping.

• Shop early to beat the crowd

Early means both early in the day and early in the season. Shopping for Christmas just after store opening after morning rush and as close to early December as possible is likely to be less stressful. The closer to Christmas day the time becomes the more pressure and crowds there are at the mall. After work hours between 5:00-9:00 PM can particularly taxing especially on top of rush hour traffic.

• Give cash instead of gifts

One may have to put the cash in big boxes to make the Christmas tree look like it's stocked with presents, but one doesn't have to go to the mall to get boxes, those can be obtained at Alcohol stores who are often glad to have the public take their box trashing responsibilities off their hands. If one isn't intent on giving sentimental or thoughtful gifts, cash is the clear and easy answer to avoid the mall altogether.

• Shop at local stores and/or chain outlets

A Christmas shopper doesn't always have to go to the mall to get the shopping done. This can be achieved by shopping at the nearest strip mall to one's neighborhood. Not only can this save gas and time, these types of stores are generally not as busy as the hallways of malls in which a multitude of shoppers transiting between, and searching for their shop can be found wandering in a shopping frenzy.

• Skip the expensive mall gifts 

Gifts are more expensive at malls because convenience costs. That doesn't necessarily translate into quality either. Homemade, or off the beaten path gifts can have appeal and sometimes even more value. Consider alternate gifts that cost less by first asking the recipients what they would like first, or what they think of some of the items other shops may have.

• Ask someone else to shop

With a little coaxing and some rewards asking someone else to do the shopping can be another way to avoid the mall and the maul mauling. If they don't want to do it, for about $20.00 a trusted neighborhood teenager may be willing to help out provided they know what to look for.

• Mailorder items instead

Many companies such as L.L.Bean, Lands End and Eddie Bauer send out catalogs from which gifts can be chosen. If they are ordered far enough in advance these gifts not only arrive without a trip to the mall but in a box. That means all that needs to be done is wrapping the box. This method can also be expedited and have a variety of shipping order options to meet one's deadlines and preferences.

All in all, the mall mauling is avoidable. With a few well chosen tactics and shopping strategies, shopping can be easy and painless. The above methods can both reduce the stress of shopping and possibly save a little on gas and travel expenses or that extra fancy gift that tempts one when browsing the windows of the mall's many shops. The mall mauling is no myth, it is a reality, but like many realities, there are also many solutions to the mall mauling.

Advantages of shopping at BJs

Many people have heard of Costco and Sam's Club, but less may have considered BJ's a viable alternative to both these wholesale stores. BJ's is similar to Costco in some ways, but improved upon in others. For example,  BJ's allows manufacturer coupons, has self check out, and accepts credit cards whereas Costco currently does not have any of these features.

BJ's is set up more like a large supermarket rather than a warehouse making the shopping experience more enjoyable. When shopping at BJ's the ceilings may seem lower, the aisles may not seem quite so crowded and the checkout might be considerably faster. BJ's also carries a wide range of discounted products, some of which are also available at supermarkets such as Safeway and Whole Foods; examples of brand names include Legal Seafoods, Alexia and Stonyfield.

Other benefits of shopping at BJ's include instant online coupons, full service website, and allowance of credit cards as a payment option. Also, if you intend to shop at BJ's a lot, the no annual fee BJ's credit card offers a 2 percent rewards program on purchases made at BJ's, and one percent at other retail locations. Rewards are offered in the form of BJ's Bucks redeemable at 3000 points and usable for BJ's purchases.

If the BJ's credit card is used in combination with store coupons, manufacturer coupons and wholesale discount prices, one can potentially multiply savings four times if the BJ's credit card balance is paid off in full before incurring interest charges. BJ's allows the use of more than one offer or multiple coupons on purchased items. The BJ's credit card can also be used as a membership card according to BJ's, and BJ's if you shop on a state sales tax holiday, subtract the cost of tax as well.

When visiting BJ's online location, manufacturer rebates are also available. BJ's has products in a number of categories including electronics, office, home, baby, jewelry, sports and more. For high frequency use items like diapers, laundry detergent or your favorite meal BJ's offers discounted bulk pricing in addition to competitively priced electronics items such as HD televisions.

Other benefits of BJ's stores include longer open hours than Costco stores at some locations, autumn flu shot clinics, BJs tire store and BJs gas stations. Items purchased at BJ's online may qualify for an instant coupon. Monthly specials are also offered at BJ's in addition to free one day passes, available online, to persons interested in trying out BJ's before deciding on a membership.  A BJs membership also provides affiliate discounts such as 25 percent off car rentals and specialized services such s television wall mounting and discounted shed purchase, delivery and installation.

BJ's locations are in the Eastern United States, and there were 187 stores as of February,  2010. In the near future, four new BJ's locations are scheduled to open in Connecticut, Virginia, Maryland and New York. Some BJ's stores are also located closer to urban cores than Costco and Sams Club; this can lower commute times and gas expenses. If you don't particularly like free samples of food, you don’t have to worry about that at BJ's as they don't offer any helping you shop for what's on your list, and not what's on the sample menu.

Sources: 

1. http://bit.ly/kLiqJ (BJ's Wholesale Club)

How to Reduce Entertainment Costs

Cheap ways to reduce entertainment costs are abound and don't have to mean skimping on fun; nor do they require one to switch one's preference of entertainment. The cheap ways to reduce entertainment costs described in this article are relatively simple and hassle free examples, especially if it is a frequent event.

• Movies and memberships

If you're a club member in an organization such as the American Automobile Association (AAA) or like to watch a lot of Disney Movies, the Disney Movie Club or AAA can get you a limited discount. For example, with the AMC Silver Experience offered through AAA, a pack of 10 tickets costs $70.00 instead of $97.50 as of May 2010. This is a savings of about 28%. This works well for families and multiple movie goers.

For Disney DVD's, if you are a member of the Disney Movie Club through http://www.mousesavers.com, four movies cost just $1.99 each with free shipping as of the same date. For both these methods to work out, one must generally enjoy going to the movies or watching the same Disney movies repeatedly.

Another way to watch movies on the cheap is to beat the matinee crowd and go in the morning. Some theatres cut the price of tickets by almost 50% if you're willing to see the movie before 11:00AM. $5.00 isn't too bad for a new release if one of your favorite sources of entertainment is going to the movies.

• Restaurants and dining

Eating can be fun but it can also be expensive so finding cheap ways to reduce the cost of this type of entertainment is worth considering why you enjoy the restaurant experience. For starters, happy hour is the time to order drinks and sometimes get discounts on meals. Other times, lunch menus are often cheaper than dinner menus so ordering food before 3:00PM can get a similar meal to a dinner menu for less.

AAA memberships can also get discounts off meals, usually about 10% off the price of a meal. That's 11%-12% if you calculate tip after the discount. For non membership discounts, http://www.restaurant.com sells gift certificates for 60% off the face value of the certificate. For example, a $25.00 gift certificate may only cost $10.00 by going to http://www.restaurant.com.

If you're picky about which restaurant you eat at, call them up to ask where they distribute coupons, what their specials are and what the cheapest time to eat at are. Becoming a regular at a restaurant can also have benefits as managers may offer discounts and/or free meals through loyalty rewards programs or multiple purchases.

• Sports events

Suppose you like horse racing, and find going to the tracks one of your favorite forms of entertainment but are looking for cheap ways to reduce the cost of betting on Zen Racer, Electro Fiesta, or whichever your favorite horses are.

To reduce the cost of this entertainment one could a) pick better horses with an improved betting strategy, b) just go to the races to watch the horses, or c) pool bets or only bet on ever other race. This same strategy wouldn't work for going to the movies however which means each form of entertainment usually requires different cheap ways to reduce costs.

• Bowling, tennis and other sports

Depending on the sport, there are more or less cheap ways to reduce entertainment costs. For seasoned and regular bowlers it makes sense to purchase a second hand bowling ball and/or a new pair of bowling shoes and by bowling weekdays during off hours. This knocks of repeated rental costs off shoes and lowers the game price.

For tennis, some parks have free public tennis courts that can be quite well maintained. If you live close by a park with a free tennis court you can get a good feel for when the court is busy. If the court has a reservation system, even better; then you can schedule a free game without waiting.

Some housing communities also have tennis courts, and in some cases, golf courses. This is ideal for avid tennis players and golfers who not only want to save money, but don't want to go far for their favorite activity. As with most things, the more often you participate in a form of entertainment, the easier it can be to find discounts. The same principles hold true for batting cages, driving ranges and gym memberships as well.

For those who only sporadically participate in a wider range of entertainment activities, timing when you participate in the entertainment and looking for free ways to enjoy the activity either through free community services or unrelated bonuses, gifts or perks can be advantageous before looking for discounts via club memberships, company vouchers, sale listings and promotional events.

Why It's Important to Know How Much You're Spending

Knowing how much you spend is quite important in to an overall financial strategy. This article will discuss the importance of spending awareness, ways to improve it and benefits associated with it. According to the Society for Financial Awareness (SOFA), knowing financial solutions and being ready for financial adversity is an essential element to living well. Moreover, If you don't know how much you're spending you might as well be subscribing to bank overdraft charges, bounced checks, and personal budget deficits.

Knowing how much is spent on what is a big part of a personal budget because budgets are essentially a price limit on various pre-planned purchases. It is essential to keep track of each purchase to stay on budget. Without a budget, personal finances can get out of control and potentially cause damage to a credit score and financial history. Some employers even access credit information to determine how organized and disciplined candidates are. What's more an out of control and disorganized budget can cause family problems and stress. 

Spending and financial awareness tips

Even though it is important to know how much is spent on what it can get confusing and tedious with all the receipts, the cents, multiple sources of payment etc. With a little fine tuning, lots of people who don't like managing their money can learn to keep track of money with relative ease. Here are a few tips to help keep track of what you're spending. 

Spread sheets

Use a spreadsheet such a Microsoft Excel and create a computer checkbook. At the end of everyday let the first thing you do at the computer be entering your purchases. Excel has a handy function called SUM that does the adding for you. All you have to do once it is set up is enter the numbers. To use it type in the expense for the day in a column one after the other. In the first blank space at the bottom of the column press the insert function feature. Look for the SUM feature and enter SUM=H4:M4 if you have 6 purchases in rows H through M in the 4 column. It may sound confusing at first but with a little practice you can design the spreadsheet to add for you. 

Debit cards

Only use a Visa or MasterCard Debit card to make purchases. This way you'll always have a record of what you spent even if you lose the receipts. Additionally, debit card information is harder to steal than credit card information. 

Online banking

If you don't utilize online banking services already, it's very helpful. With online banking you don't even have to create a spreadsheet as there is one already made for you. Sometimes you can even pay your bills with this feature saving yourself trips to the post office and stamps. Online banking often provides the purchase spreadsheet record for you with a 1-2 day processing delay. 

Account holdings

Keep only as much money as your budget allows for in your checking account and transfer the rest into your savings account or money market account. This way you'll be less tempted to access those funds and after a couple of painful overcharge fees discipline may begin to set in. If you don't want the overcharge fees for going over the budget don't spend more than you afford. Self discipline is unfortunately required to get on track financially. 

Mental record keeping

Mentally keeping track of your budget and what you have available can also help you become aware of how much you spend. It also develops financial discipline and awareness if you do this, and overtime this may positively influence your financial habits.

Summary

After time, and with diligence and practice these things become second nature. The reason the Excel method works so well is that if you stick to it you will becoming an experienced budget practitioner after a few weeks or less. It feels good to know what you've spent and what you have available at the drop of a hat. After becoming a skilled budget practitioner, stress levels can go down, spending becomes disciplined and life generally becomes a little more easy.

Chances are you owe it to yourself to keep track of what you spend and the tips in this article may assist with that process. For additional ideas on why it is important to know how much you are spending, consider reviewing financial websites, consulting with family and friends, bankers etc. There are many ways to improve financial awareness for a more complete financial health profile.