Budgets

Hints For Saving Tech Dollars

July 23, 2014 By Twila Van Leer

You can pocket some cash when adding to your technology “stuff” by following these suggestions that were included in the AARP’s annual list of 99 ways to save money:

Research new gadgets and find when they will be on the market. That way you won’t purchase an item soon to be obsolete. In general, a new iPhone hits the market every September, followed by an updated iPad in November. New camera models hit the markets in February and October. And there’s always a pile of electronics items that make their appearance for the holidays.

Consider a prepaid cellphone. That way, you pay for the calls before, not after, you’ve made them and that can save you considerable cash. All the big cellphone producers offer prepaid versions, but they don’t tend to advertise them. Make the request.

Keep in touch with family via Skype or similar app. They are available for smartphones, tablets and computers. Face Time is the version for Apple phones, tablets and computers. This free phone chatting over the Internet adds the bonus of video. Both parties, obviously, must have the app, but most families are now prepared to commune by computer.

Learn to outsmart scammers. If you receive an email purportedly from your bank or a big store, don’t click the link and log in. The email is fake and takes you to a fake website. As you are logging in, you give the bad guys access to your password.

When traveling outside the United States, put your phone on airplane mode. If you don’t, the phone will keep checking the Internet and emails on the cellular network in the country you are visiting. You’ll have a big bill when you return home. If you have to check email, turn on Wi-Fi and find a Wi-Fi hot spot.

Look at refurbished computers, rather than investing in a “new” one. Many of those listed as refurbished are, in fact, new ones that were bought and then returned for some reason. There are inspected more thoroughly than new machines, but the dealer can’t sell them as new. They cost less and have the same warranty.

Stick to basic cable, then sign up for Netflix streaming, which usually costs about $8 per month. You then have unlimited movies and entire seasons of some T shows. Your local library most likely has a good collection of DVDs.

Before you buy anything online, check for discounts and deals. You may find a better deal.

What Not To Buy In 2014

May 19, 2014 By Twila Van Leer

Save Money On Traveling — Extra Leg Room On Trips – Is It Worth The Price?

Technologies are changing and require more review of intended purchases if you’re in the market for products. Here is a list of products from around the web that you might want to avoid if you want to keep your money in your wallet.

1 – Landlines

Landline telephone services are rapidly being replaced by wireless phones. Two in five households had switched to wireless the first half of last year, up slightly from the first half of 2012. In the past decade, some 90 million adults, 38 percent of the population, became wireless-only. Scrapping the landline allows you to drop one of the monthly bills. And you needn’t be restricted to a cellphone. There’s Skype, which is free and puts you in touch with friends and family around the world via smartphone and other devices. FaceTime video may be free with a Wi-Fi connection. MagicJack Plus can be connected to a USB port, computer or regular phone router. It may cost $49.95 for the device and six months of service, after which the monthly service is $1.67 to $2.50 per month. Some folks may want to retain their landline as well. There is more security in case of disruptions caused by bad weather or other problems.

2 – GPS

Before investing up to $300 to purchase a GPS device, look at new developments that serve the same purpose. There are GPS apps on many smartphones, a fair number of them free to upload. A growing number of new cars come with a GPS option. Forty-nine percent of 2013 vehicles have a navigation system.

3 – Cable Television

Cable television is being replace by other technologies. Since 2004, subscribers to cable have been dropping out in favor of services such as Hulu and Netflix NFLX, which provide comparable service at a much lower cost. Using an Internet connection, consumers can stream many cable shows, news programs and sports events, as well as movies, directly to their TVs. Some channels offer access to programs through their websites. These services are available primarily to those who don’t care if their shows have been previously aired and who are willing to give up live programming.

4 – Hotel Rooms

The demand for hotel rooms, along with their rates, are going up. There are some alternatives, including apartments and homes where prices are lower and there is usually more space. The average daily rate at U.S. hotels is $110.59, up 4.1 percent from 2012 and 12.6 percent from 2010. The average is expected to rise to $115.68 in 2014, according to PricewaterhouseCoopers. Agencies such as Airbnb and Vacation Rentals By Owners, offer an assortment of homes you can rent. Some provide free airport pickup and drop-off services. This approach is particularly effective for large groups or families traveling together. Advantages may include many bedrooms and facilities for meal preparation. The downside: such arrangements usually offer less security than do hotels.

5 – DVD & Blue-Ray Players

DVD and Blue Ray player sales are down. Sales for DVD and Blu-ray units totaled 21.3 million in 20l2. That’s down 20-plus percent from a year prior and 24.8 percent from 2010. More people are opting to stream movies from Internet services such as Hulu and Netflix. Many gamers can use their consoles to watch DVDs.

6 – Computers

Desktop and laptop computers are becoming obsolete to a degree. Tablets perform the same functions and they’re portable. The price differential is considerable, with Apple’s IMac starting at $1,299, compared with an iPad at $299. Graphic designers and traders, obviously, will find it necessary to stay with large screens, but for the vast majority of users, the smaller versions fill the bill. Worldwide shipments of PCs fell 4 percent in 2012 over the prior year, an indication that PCs are losing ground in the computer market.

7 – Leg Room On Airplanes

Airlines are changing their approaches to giving passengers more amenities — for a fee. It has been common practice to provide an extra three to six inches of legroom in coach for an additional cost of up to $180. The seats often are in the exit rows or the first row in economy. But for a payment of $100 to $200, a traveler can be upgraded to business class, where seats are more comfortable and service is more accommodating. These are options that used to be reserved for frequent fliers, but now they are offered to any passenger willing to pay a bit more when they check in or at the gate.

8 – Credit Cards With Rewards

Credit card companies are altering rewards programs. Consumers should be wary now of promotions that offer rewards in points or miles. Many of the card issuers are requiring a greater outlay by the consumer to get the “free reward” they could have obtained earlier with fewer points. Many of the cards now come with annual fees ranging from $30 to $75. Instead, consider a credit card with a cash-back offering, a much more straightforward plan. The usual kickback is 1 percent to 5 percent of the number of dollars involved in the purchase.

9 – Digital Cameras

Digital cameras are suffering an identity crisis. With competition from cell phones with photo capacities and an expanding range of options for picture-takers with particular goals in mind, there is a confusing array of choices. Digital point-and-shoot cameras that have been the rage for years are seeing a decline in demand. Sales are down some 44 percent since 2012 and they’re expected to keep dropping. “Real” photographers are choosing larger, DSLR cameras, while those bent on action shots are finding models such as the Go-Pro best meet their needs. Be sure that what you get is what you really want.

10 – Credit Reports

By law, credit card reports cannot be more than $11.50 per report. Your credit score is often not included in these reports. You can order three different FICO scores – one from each credit reporting bureau – but it will cost you – $59.85. Some credit cards like Discover Card are showing customers credit scores every month when consumers sign on to their accounts. You can’t beat free credit scores!

As a consumer we want you to save money on all your purchases in 2014. If you know about other good savings tips, please share with us!

When Rent Payments Are Too High

May 8, 2014 By Twila Van Leer

Rent. When Is It Too High?

Are rent payments more than 50% of your income?

Depending on where you live in this country, you could be putting up to two-thirds of your income into rent. That’s twice the percentage usually advised by the financial gurus. But, what are you going to do?

One in three Americans is now shelling out the standard one third of income for rent, but for many, for instance those in the Bronx borough of New York City, it is more typical to see 66 percent of the household’s income disappear into the hands of landlords. That’s the worst it gets, according to RealtyTrac. To add to the woes of the Bronx dwellers, the overall median income is under $35,000, with the average rent at $1,800 per month.

The dilemma is spreading to other some cities, the realty oversight company says, with growing numbers of pockets of low-income renters. In Philadelphia, Brooklyn, Baltimore and Miami many must part with 50 percent of their income monthly to keep a roof over their heads.

The fallout from the recent recession is contributing to the problem. The crisis in foreclosures turned millions of former homeowners into renters. And the continuing uncertain economy has discouraged many renters from becoming homeowners, according to Harvard’s Joint Center for Housing Studies. Increased demand has seen rents climb by 21 percent since the housing market peaked in 2006.

At the same time, real income – after inflation – has dipped by 14 percent, creating a double whammy for the renters. The Harvard center found that about one in four renters overall is paying more than 50 percent for housing. The result is inevitably that there is less to spend on food, healthcare and retirement.

The rent reality becomes a factor when a person considers a job change that has, initially, less pay but offers more opportunity in the future. The immediate demands may trump the potential. Additional education also may be sacrificed even if, in the long run, it would improve an individual’s future prospects. Saving for a new home becomes difficult, if not impossible. Bottom line: Reasonable rents contribute to the overall financial health of the country.

Powerful Budgets Help You Get What You Want

April 5, 2014 By Sherry Tingley

We all have them: Expenses we can’t sidestep, things we would like to have and long-term hopes and plans that require up-front planning.

Stretch Your Dollars By Budgeting — Budgeting Helps You Keep Your Dollars

That’s what budgeting is all about. It gives you a clear picture of what you have, what you must spend and what’s left over for those things that are only dreams in the making. For most of us, it’s clear that the “musts” will eat up most of the paycheck. Surveys show that the average American household spends 80 percent of its income on essentials. Sixty percent, right up front, goes to housing, food, gas and insurance.

The budget becomes the tool that keeps you within the boundaries of your available income and allows you to wisely plan for the “wants.” What it takes is discipline, planning and prioritization.

Use Budgeting Tools Online

First off, be aware that many financial institutions offer on-line or paper plans to help you create a budget. Use them.

Goal Setting

Where to begin? Setting a goal is a good idea as a prelude to making the plan. Clearly put down in black and white what your main financial objectives are.

Establish Your Exact Income

The next step, obviously, is having a very clear picture of your income. That’s essential to planning the outgo. Start with your net income. Get some concrete evidence of what the figure actually is by reviewing pay stubs or other records of income. Standard deductions are shown, such as insurance, taxes, 401K contributions, etc. That will give you a list of what’s being skimmed off before you get what actually goes into the bank. The latter figure is what you’ll work with as you plan how to spend.

Discover Your Basic Expenses

The next step is to look at your basic expenses. As a rule, these don’t fluctuate much from month to month. They include rent or mortgage payments, utility costs, car payments and expenses, insurance and regular payments on existing loans, such as education costs.

Establish An Emergency Fund

Ideally, you need a safety net, a reserve for those unplanned life events such as unseen medical expenses, car repairs, large appliance replacements, necessary upgrades to furnaces, water heaters, etc. etc. The list is long and, for most people, entirely unpredictable except in the fact that they inevitably happen. Try hard to build yourself a little cushion against the day that it’s your turn. That means creating a savings program that is backed by a firm hands-off policy. An automatic deposit into a bank or credit union savings account , mutual fund or other established savings program may reduce the temptation to dip into this reserve. Setting up a yearly CD account may be what it takes to reduce the temptation to dip into easily available savings.

Cut Back

Look for places where you can trim. Do you really need several hundred options for television viewing. How about a basic program? Could you save on meals by taking a lunch to work a few times each week? Public transportation? Car pooling? Eating at home instead of frequently dining out? Expensive personal habits such as smoking and excessive drinking might offer a source of savings, as well as reducing medical expenses down the line. Look online to find advice, such as practical tips on how to save money. There are dozens of them.

Plan a certain amount of cash to see you through each pay period. Knowing you have just $60 in discretionary spending money may make the desire for a $60 pair of shoes easier to bypass.

Pay Off Credit Cards

Try to pay off credit cards. Don’t accumulate a pocketful to begin with. Choose one, based on the best combination of offerings, and stick with it. If that advice comes too late, make a concerted effort to pay them off one at a time, starting with the one with the highest interest. Add a few dollars to the monthly payment on that one account until it is paid off, then go to the next one. With your budget firmly in mind, resist the temptation to use credit cards for “whim” purchases.

Include every person in your household in the budgeting process. If a wife is firmly committed to a budget and her spouse is bent on accumulating debt, or vice versa, the effort is usually hopeless. Children who see the figures concretely may make fewer demands on the family resources. And they’ll learn the fundamentals of money management into the bargain.

Continue Planning Throughout The Year

A budget isn’t a one-time effort. Ongoing planning and revision are essential as life circumstances affect income and spending. Routinely balancing the bankbook is part of wise budgeting. It’s easy to miscalculate spending if you aren’t certain what the bottom line is. Save receipts and write down where you spend money so you can’t become hazy about actual expenditures.

Allow Occasional Splurges

An occasional splurge isn’t fatal, but there is a calming effect in being in control of your income and outgo. Make a budget your friend and stick with him.

Budgeting Mistakes That Can Cost You Hundreds

10 Travel Tips To Stay Within Your Travel Budget

March 24, 2014 By Sherry Tingley

A vacation is something that most people enjoy, but few are able to afford consistently. However, a fun vacation doesn’t have to break the bank. Whether you want to take vacation to the beach or to an exotic location you will need to plan ahead. By discovering your hidden thrifty streak and checking out these ten travel tips, you can make a vacation affordable for you.

Prioritize

Before you start thinking of where you’d like to go, consider what you want to do on your trip. If you’re after a five-star vacation, you’re likely going to need to save for it. However, if you just want to try new cuisine, see something historic or simply relax, it’s possible to do it for less. Try shopping at ethnic markets for new foods and cultures, or hitting the beach to relax.

Decide on a Travel Budget

It’s unwise to travel without a budget. Take into account your current financial situation and see how your vacation fits into it. However, you should allow for a margin of error. Few things ruin a vacation faster than realizing you’re out of money because you forgot to plan for something. Once your budget is set, don’t stray from it. These days, many websites are available that allow you to find options within your specific price range.

Take Advantage of Slow Periods

Depending on your schedule and preferences, you can shave hundreds off your costs by taking advantage of off-season trips. Prices tend to be considerably higher during peak travel seasons, like summer and holidays. Plus, you also won’t have to deal with crowds, long lines and other things that make traveling stressful.

Find Cheaper Accommodations

Even the cheapest hotels can cost a small fortune, so consider possible alternatives. Staying at hostels, rental properties, the home of a friend or family member and even camping are several alternatives that will cost you little or no money. Some travel tips even suggest couch-surfing.

Make it Short

A vacation doesn’t have to last for weeks. If you take a shorter trip, you could save a lot of money. Why not visit an area in your state, like a camping trip to a national forest or a weekend at the beach? Another benefit of this is that some services offer you a discount if you’re a state resident, making your trip even cheaper.

Wait Until the Last Minute

If you’re flexible, try finding some last-minute deals on fare and accommodations. If there are any slots left over by a certain point, companies want them filled, even at a discount. However, last-minute fares can change without warning, so book quickly.

Be Sale Savvy

Watch for sales on fare or hotels. This is especially helpful if you’re planning well in advance. You can sign up for alerts on a number of websites to let you know when a good deal has become available. Even if you book several months ahead, the price will still be good on the day of departure.

Group Vacations

If you have friends and family who also need a vacation, consider making it a group affair. Many airlines and hotels offer steep discounts for groups, which means you might pay a fraction of the cost of going solo.

Enlist the Crowd

Sometimes, a vacation can get staggeringly expensive. However, the Internet has revolutionized even this. Crowdfunding, enlisting others online to donate money for a cause, is one way to finance your trip.

Doing Volunteer Work During Vacations

If you like helping out and you need a getaway, why not try volunteering for a vacation? You still have to pay your way there and back, but many organizations will provide all other accommodations for people working for the greater good. Check with your local Habitat for Humanity, church groups and other charities to learn more.