Making Ends Meet With Less Income

The great recession that we are in has meant that a lot of Americans are cutting back on a lot of usually affordable items. Making ends meet with less income is a way of living that a lot of us are getting used to, until we can do better.

Experts are noting that unemployment has gone down; however, more detailed studies reveal that the numbers are illusionary because those that have run out of unemployment benefits or are not eligible for benefits are not counted as being unemployed.

As time goes on, many American’s unemployment benefits are being exhausted and they have become ineligible to reapply. However, this does not mean that these people are working—and at most they may be underemployed. Then there are those that are not eligible, like those with failing businesses that can no longer stay afloat. These people are not being counted by the general census for unemployment accuracy—this is the conundrum.

Among many other things, what we are left with is a class of people that have to pay living expenses with much less. For those that are living with one income when your household once had two, or you are underemployed, you may appreciate this information.

Basic Survival

Being creative is a skill that can get you far in times like these. What it really comes down to is making it from day to day.

For those fortunate to still be in the workforce, plan out all of the necessary things that you need for the week. You need to be sure to get to work everyday, so be sure to have that expense covered.

Buy your transportation fare card ahead of time. Some employers have a program that allows you to purchase transportation fare cards, like a metro card, directly from the employer. The money is taken out of your paycheck before your deductions are calculated from your gross pay. This may alleviate some financial burdens for you later on in the year—ask your human resources department about it.

If you drive to work, be sure to put aside gas money. Avoid parking tickets and any other fee related offenses. The last thing you need is to spend more money or not have the use of the vehicle you need to get back and forth to work or to support your family care needs.

Pack a lunch instead of buying takeout all of the time. If you don’t like eating leftovers for lunch, then buy lunch items when they go on sale at your local market. You may be able to save 30%-60% off of lunch food costs when compared to buying lunch from vendors near your job.

Keep home expenses down, like utility costs, food, and repairs. Keeping on top of your utility usage will help to keep them low. Try to purchase foodstuffs when they are on sale, and store them well. Keep up on minor repairs so that they don’t turn into expensive home improvement projects later.

Entertainment

Relaxation and getting in enough down time is very important. You need to get proper rest to recharge yourself. This may call for some distraction and entertainment. You may not be able to go to the movies on a regular basis and movie tickets are very high right now—no problem. Check out you local paper for free to-do events. Go to the park, botanical garden, or museum on discount days. Go to your destination’s website to find out the discount price and free event schedule they have to offer. You may be surprised at how affordable and convenient this may be for you to do right now.

Don’t want to go out? Then stay home and log onto one of the low cost video streaming websites that you subscribe to. Netflix® video streaming is less than $10 dollars, and Hulu® is free—and a paid subscription to Huluplus® is also less than $10 dollars. I am sure that the low unlimited video streaming costs are less than haff of what others may pay for cable. Unplug the cable and go online for much less and with more flexibility and control.

Save, Save, Save.

I know that his may seem really daunting in times like these. It is truly challenging to save a significant amount of money right now—but that is ok, do the best that you can at the moment. Saving even just a few dollars from paycheck to paycheck really adds up. Perhaps you may not save enough for an all expense paid two-week vacation; however, you may have saved enough money to be sure you don’t run out of money for your basic expenses. Do your best to not have to borrow any significant amount of money. Nothing can be worse than trying to pay back money when you and your family are living on a very low income.

Calendaring Your Year—It’s Your Money

How can you start off the year better than the last—start managing your money better from the start of it. This is such a simple idea and easy to follow. Take the beginning of this year to chart out a way to have a better grip on your finances.

January is coming to a close, so most of the mood for procrastination should also be coming to a close. Take this time to make a basic outline of how you want the next few months to turn out—financially. Map out all of your usual financial obligations by each quarter or individual month of the year. Let’s get started.

January through March

Get all of your holiday finances in order. By now, all of the credit card charges that you made over the holiday season should be posted and ready for payment. Paying the minimum amount due may suffice; however, paying even 5%-10% more can make a tremendous difference in the long run. Paying off all of your holiday debt should be your ultimate goal.

Look at your calendar and figure out what key events will effect you finances and just jot them down accordingly—a simple title will do to get you started, you can always follow-up with details at another time. It is just important that you get that much done, for now.

Stay on track and pay down that debt.

Tax time is right around the corner. If you have not already, now is a good time to gather up all of the necessary paperwork for filing. Check in with you accountant and discuss the details on what you may need for this year as your needs can change from year to year. Be sure to check in with your accountant early to find out his or her availability.

Start thinking about what you want to do this summer. Will you be going on a vacation? Will you be staying home? If you have children, will you be sending them to summer camp? These are all serious expenses that you should start considering and planning for.

April through June

Spring is in the air and so are new expenses—new spring and summer wardrobe to consider, home repairs and improvements, more holidays and special events to plan for. Parties, graduations, and outings may dominate the latter part of the spring for you and your family. Be sure that you have planned well to meet all of the accommodations you want to offer.

Keep all of this in mind and stick to the financial outline that you have created with your calendar in January.

July through September

Summer is officially here. Your wardrobe has officially changed by now. Be sure to have a hold on any related purchasing expenses and continue to keep up your payment plans. Keep a close eye on your calendar for reference. You should be continuously plotting in details for the general goal titles you have posted on your calendar already.

Big holidays like Independence Day can be quite expensive. Be sure to have a set budget for this. If you are hosting a party, get invitees to bring something to cut down on your own expenses. If you’re traveling to a party, be sure that you have money saved for gas, lodging, and other related traveling expenses. The same goes for family reunions, get-togethers, anniversary parties, and Labor Day.

By the time Labor Day arrives, you should already have your child’s back to school expenses planned out—or perhaps your own back to school expenses to think about. There should be a lot of really good sales going on from late July through August on targeted back to school items.

October through December

The biggest holidays of the year are well on the way—Thanksgiving, Christmas and other religious holidays, and New Years.

By late October and early November, you should really think about how you will be spending your Thanksgiving. Will you be hosting or going to visit someone else? The same goes for upcoming religious holidays, and of course New Years as well.

These holidays usually require the most money effort so plan early on costs for hosting a holiday gathering, gifts, and wardrobe.

Sticking to a basic plan and plotting your way through the year will prove to be a tremendous help. Be sure to modify your calendar with more details and continue to personalize it for new events as you become aware of them.

Beauty Bonus

Times have been tough for all us lately. The economy has forced many Americans to do without the usual and consistent luxuries. However, American women have adapted and even drove a particular market sky high—nail polish. Isn’t that simply amazing? There are plenty of beauty rituals that do not need to be put off because of the overturned economy. Become a do-it-yourself person, and get the most out of your own natural talents.

Nail Shop Envy

Consistent trips to a nail beauty salon used to be a grooming necessity. Now, it has become an every now and again luxury for many. A typical manicure and pedicure costs about $25 – $30 dollars, with a modest tip for the nail technician. That is a total cost of approximately $60 dollars per month, or approximately $720 dollars per year—when you add that up at the typical bi-weekly visiting rate for nail grooming. This does not include transportation costs, or the purchasing of a quick snack and beverage while waiting to be seated for services. That is a lot of money that can be used elsewhere, and for a more long lasting or productive purpose.

American Women Are Doing It For Themselves

Self-serve has taken on a whole new meaning this year. The numbers of self-grooming products are proving it—nail polish and nail products in particular. Nail polish products buying by average American women has gone up a whopping 59% for the better part of this year, according to the NPD Group market research firm. That is up from the same time in 2010.

Women are able to take care of this task themselves, and the opportunity to change up their look is endless. There is no need to wait for bi-weekly grooming, or for your favorite nail technician to be available. With the colder weather upon us, it can also be a bit more troublesome experience—try to get a pair of socks, boots, and gloves on after a fresh Mani Pedi. All that has to be done is to pick up a bottle of nail polish from a local beauty supply and voila—instant beauty makeover. This is quick, inexpensive, less time consuming, and truly gratifying.

Women just can’t seem to get enough.

Real Beauty

Women who want to be beautiful will find a way to achieve it without the salon. There are lots of beauty treatments that can be done at home. There are homemade beauty wrap recipes and products. Natural product facemask recipes for all complexions are easy to find with the some online research. YouTube is loaded with a plethora of instructional beauty regimen videos. Bring the spa experience home by adding romantic scents to the home atmosphere while performing a home beauty regimen. Make a party out of it by inviting some friends over. Get ready for the holidays—and save some money while you are at it.

With a bit of research women can find a ton of recipes on homemade beauty techniques, at a fraction of the cost of going to a beauty parlor or salon. That’s your beauty bonus.

Resources:

Reuters: http://www.reuters.com

Yahoo!: http://www.yahoo.com

Holiday Outfits on a Budget

The holiday season is in full swing. Thanksgiving has just passed us by, and the end of year celebrations are just around the corner. No matter how or what you may celebrate, there is a pledge to the fashion police to adorn yourself with your finer clothing and accessories this time of year. However, with the economy being what it is, a lot of us will have to make due with a whole lot less this year. No problem.

Shopping for Discounts

There are plenty of options for affordable clothing these days. If you did not have the opportunity to partake in the recent Black Friday weekend shopping bonanza or the terrific deals presented to consumers on Cyber Monday, you may still have an opportunity to get a great deal or discount. First of all, many retailers are still offering sales—at the same or slightly higher pricing. In any case, it should be lower not then at any other time of the year. So if you were too into turkey day to look up, be on your way to the nearest shopping center for the end of year clearance racks.

Most retailers are getting ready for more holiday shopping and want to continue the successes enjoyed during last week’s consumer frenzy. They will start to offer end of year deals right around the time you will be ready to get an outfit together for your holiday event. Look out for deals on shoes, bags, hats, dress and casual clothing.

I can’t seem to say this enough, online retail websites are a very consumer smart way to go for some of the best deals you can imagine. If you are lucky enough to make purchases at all, I would definitely make online shopping a priority shopping option.

Exchanging Clothes

Times are not easy, but it has not always been like this. There are plenty of unused (brand new with the tags still on them) and gently used clothing that can be exchanged within trusted circles and associations. Keep an eye out for organizations that may be having clothing exchange events in your neighborhood. This may be held by a not for profit organization at a local participating retailer, thrift shop, neighborhood social center, or place of worship. If you cannot fine one, you may be able to host one yourself. This can be a great cooperative activity that you can share with family and friends—get them all involved.

Recycle Old Clothes

You know that you probably have enough clothing from the last holiday season to wear this year as well. Once it is still in good condition, it is wearable. This can save you big in the long run.

Don’t like the color—dye it. A bit too bland—embellish it with clothing jewelry or decorative fabric pieces. Get creative. There are a plethora of website portals with video and other clear media demonstrating how to get this done—that goes for great hairstyles for the ladies as well.

Don’t let the lack of immediate funds or the lack of what you may have been used to suppress your holiday spirit. You may find that participating in such tasks to not only be effective toward your goal of getting something to wear, you may also find a distraction that may be a well deserved pick me up. Enjoy.

Black Friday Successes

Retailers waited anxiously for what has become the biggest day in retail for decades now—Black Friday. Occurring on the day after Thanksgiving, Black Friday has been used as a determining retail factor for financial figures for the rest of the holiday season for decades. Retailers that do well on Black Friday may expect to do well financially by the year’s end. This has lead to an expected frenzy of encouraging sales to lure shoppers so that they get a jump making on holiday purchases—including extending Black Friday to “Black Friday weekend.”

Everything and Anything Goes

Televisions, cell phones, computers, house wares, laptops, clothing, furniture, jewelry, and of course the crowd favorite—toys. Retailers had all of these on sale. Savvy consumers made the most out of some of the best shopping deals on the momentous day. Items that were usually sold at much higher prices earlier in the year were offered at a deep discount this past weekend. Retailers have been following suit by offering new items during the Black Friday event. Manufacturers have also been playing along, by offering new and updated items with late fall release dates. This spanned from e-readers to the latest and greatest video games. All of these retail forces worked together for the largest profit imaginable.

So how well did American retailers do this year? Very well, and better than expected according to experts. The National Retail Federation has estimated that during the weekend of Black Friday consumers spent a “record $52 billion dollars.” There were an estimated 14 million more shoppers in stores this past weekend, and nearly 25% of all shoppers that visited stores did so during the 12-midnight opening time on Friday. The earlier shopping hours went over well with shoppers that just wanted to get it out of the way as soon as possible and felt this was a welcoming alternative than getting up in the early morning to beat other shoppers to the door. Some shoppers would have been able to have dinner and camp out in front of stores with dessert—only in America.

And the Winner Is…

Resources:

Associated Press: http://www.ap.org

National Retail Federation: http://www.nrf.com

Reuters: http://www.reuters.com

Banks About Face to Raising Debit Card Fees

Banks are realizing that raising fees are a clear mistake for customer loyalty and morale. Since Bank of America made announcements this fall declaring a rising of debit card fees, there has been an outrage amongst debit card users everywhere. Consumers sensing a trend developing noted their dissatisfaction in great numbers.

The proposed BofA Debit Card usage fee of $5 dollars a month changes are supposed to begin at the turn of the new year. A powerful outcry by consumers has thwarted these general plans. Some customers have even made videos that may be viewed on YouTube. This is a serious move by consumers.

“Consumer power has worked, at least in this case,” according to MSNBC.

As a direct result, BofA has made adjustment that include no debit card fees for: having direct deposit payments from employment payroll, maintaining a minimum balance, or using BofA credit cards.

However, some “experts” have noted that consumers should look out for what they are calling “stealth fees.” These would be fees that may be attached to your account for not maintaining a minimum balance, not making enough use of your debit card, or some other similar type of lower utilization penalty. This could all sum up to being a low blow for consumers that are not rich enough to avoid these fees, if these stealth fees should be applied. No announcements have been clearly made by BofA as to what the bank minimums will truly be. However, it has been in the thousands of dollar mark in the past, according to reports. Today’s average American, cannot afford to keep up with such high minimums on their banking accounts.

Among the Big Banks that have made announcements that they will not charge fees or stop charging debit card fees of this type are JP Morgan Chase, TD Bank, Citigroup, Inc., Ally Bank, USAA Bank, and Wells Fargo. Some banks, like Chase, had tested out an increase earlier in the year are now reluctant to begin the increase. So far, none of these banks have admitted that their change of heart has to do with the backlash of the BofA proposal. Some experts have noted that these banks are doing their best to avoid a “Netflix moment.” There have already been reports of customers actually going into their local BofA branch and literally cutting up their BofA debit cards for all to see.

There is a strong resentment present as customers feel more than slighted by having to pay to use a card for accessing their money.

Alternative banking does exist for those that want to avoid some of the high fees. Municipal Unions, and community banks may offer a lesser financial burden for banking consumers. You may also have an opportunity to make money—interest—from an interest bearing checking account. Online banking, with exclusive online banks, may also be a way to avoid high banking fees.  With a bit of research, you may be able to come out ahead of all of this.

Resources:

Associated Press: http://www.ap.org

The Bottom Line: http://bottomline.msnbc.msn.com

Saving Up for the Holidays

As October is coming to a close, most people are already thinking about the holidays ahead. The holidays are a time for people to slow down a bit, relax, and spend time with loved ones. Unfortunately, this is also a time that a lot of people go into debt from over spending. It is critical to think how you are going to spend your money, and where you may be able to save some money this holiday season.

Holiday Dinner

A holiday dinner for your own household plus extended family and friends can be quite pricey. An average holiday meal for fifteen people is $300.00 dollars, approximately. This will modestly provide a main entrée, with up to three side dishes, desserts, and basic non-alcoholic beverages. If you will be serving champagne, wine, or anything else besides soft drinks, the pricing may increase by approximately 1/3. And you may be cleaning up alone.

There are several ways to combat this amount to about half the cost, if not even less.

You are probably a part of your local supermarket’s reward program – and if you are not, then you should be. Most supermarket reward programs have a free holiday food giveaway program around this time of year. Once you have accumulated a particular amount of money spent on groceries, you may be eligible to qualify for the offer. The accumulation occurs over a period of time. This is usually printed out on the receipt from purchases that you have made, while using your supermarket rewards club member card at the store. Most giveaways will give you a free main entrée food such as a turkey or a roast.

Most supermarket food sales start weeks before the holidays actually begin. This will make for a good opportunity to stock up on non-perishables as they go on sale. Make purchases of fresh foods and produce the closer you get to the holidays to avoid spoilage, and wasting of food.

You may also kindly ask guests if they would like to bring something to dinner. Work out a food plan with your guests to be sure that not more than one person brings the same thing. Another great idea is to accept an invitation for holiday dinner your self.

Holiday Decorations

This should be as simple as possible. The easiest thing to do would be to reuse the decorations you used last year. Otherwise, check out your local discount store for a thrifty selection of holiday decorations.

Gifts

The average American family is expected to spend approximately $700.00 dollars on gifts for this holiday season, according to an article by the National Retail Federation. This is down approximately $18.00 dollars from last year, as noted within the same article, produced from a research survey conducted by BIGresearch™.

A way to get around or reduce this expense even further, is to only go shopping when your shopping destination is having a sale.

A huge cost and time saver is to order the majority, if not all, of your holiday purchases online. Most internet shopping resources will not only have a sale on the products you want to purchase, they may also offer free shipping or gift wrapping. You can save a tremendous amount of money this way.

Resources:

Financially Fit: http://www.financiallyfit.yahoo.com

National Retail Federation: http://www.nrf.com

Banking Online

A New Personal Finance Solution

This is truly an interesting endeavor. Online banking has been with us for quite some time now. Most people refer to this as being able to have full access to the brick and mortar bank they have already joined.  The ability to check up on account activity, new payments, and making money transfers with the touch of a button, is very convenient. However, some banks are now exclusively online. This type of banking completely eliminates the need for standing in line, and other related bank lobby issues. Because there is a lowered need for human capital, most online banks offer double and sometimes even triple the interest rate earnings as compared to other banks. This option makes for a profitable move. However, changing rates over the years has become more comparable to brink and mortar banks. Even so, some still believe that online or Internet banks are the new age way to go. And online banks do still have a slightly higher earning rate and lower to no fees. But how are people really getting along with an all-electronic banking system? Let us weigh the pros and cons of this matter.

First of all, higher interest earned with low to zero minimums, is probably the biggest draw to exclusive online banking. Typical brick and mortar banks offer an interest rate earning of less than 1% for most accounts, and some with high minimums to even begin earning interest. At the most you may get 1.3% interest earnings on a savings account. This has led to some consumers finding that online or Internet banks may be able to offer more for less. Even comparable rates may bring out more consumers if there are other existing accommodations being made to them that brick and mortar banks will not offer.

ATM and minimum fees are virtually nonexistent in online banks. And if by chance an ATM charges you, most online banks will reimburse you. To top it all off, most online banks do not charge a debit usage fee either. Now that is really good customer service.

One drawback from online banking is opening up an account to begin with. The typical way of opening up a bank account with a brick and mortar bank is to bring your identification information to the location of your choosing. However, with an online bank this exchange is more rigorous and takes longer in order to avoid fraud concerns. Most importantly, opening up an online bank account will need for you to send in your signature. You can probably send all of this information in electronic format. However, it is best to check with the bank for more enrolling details.

A very important feature that you want to make sure of before signing up for an online banking account is making sure that the online bank is FDIC insured. Some of the online banks are not.

Another issue can be the transferring of your money from your brick and mortar bank to an online bank. This may take a much longer time because you will have to mail in your deposits on a regular basis. Some online banks do take payment via MoneyGram or UPS though. Future paycheck payments may be easier with the use of direct deposit. However, some bank consumers like face-to-face interactions with people that know he or she by name.

All of this becomes a matter of personal preference compared with functionality and pricing that one can live with. The explosive rise of banking fees lately, have consumers begging for a better banking deal. For some, online banking may be the best way for an alternative banking experience, with higher earning potential, and low to no fees attached.

Resources:

Bankrate.com: http://www.bankrate.com

Main Street: http://www.finance.yahoo.com

My Bank Tracker: http://www.mybanktracker.com

Retirement Plans Not Feasible

Social Security Loosing Ground for Modern Seniors

Resources:

Social Security Online: http://www.socialsecurity.gov

The Wall Street Journal: http://online.wsj.com

Reducing Monthly Expenses

If you feel like you are barely getting by each month, then you aren’t alone. Many households feel this way. The cost of everything seems to be going up, so the disposable income is going fast. It can be hard to make ends meet, especially if you have a great deal of debt.

Sit down and write down all of your monthly expenses. Make two columns – one for your monthly bills that you will have for the long term. This should include your mortgage or rent, your utilities, and your car payment.

In the other column, write down debts that you have such as department store charge cards, credit cards, and personal loans. Those are debts that you can pay off to start increasing the amount of money you have left over. Contact those entities to see if you can get on a repayment plan. Don’t be shy about asking for a lower rate of interest either.

Take a good look at where you spend your money. It can help by writing it all down. Make a goal of not incurring any more debt too. If you spend tons of money eating out, make a menu and go to the grocery store to get all the times you will need. This is a very simple change you can make to cut down on your monthly expenses.

Do you spend lots of money on buying coffee each morning? That $3 you spend can add up to almost $100 a month! That is money you could use to pay off bills. Make your own coffee and you will be able to see that money adding up.

Trading off with others can really help you to cut your monthly expenses. If you pay for childcare, see if there is a friend or neighbor you trust who could do it for less. They will like the extra money, and you can save over using a traditional childcare facility. You can even consider swapping childcare services so that you don’t have to pay anything at all.

Before you purchase something new from a local retailer, see if you can get it online for less. It is amazing how much you can save by looking around for a few minutes. Just make sure you take a close look at the cost of shipping too so that you make sure you get an excellent deal.

You can also get some used items instead of buying new all the time. Go to thrift shops for items you need around your home including clothing and furnishings. You can also go to estate sales and garage sales to find amazing deals. Check out sites online too where you can get items people no longer need for a fraction of the retail price.

It may seem right now that you will never get ahead. However, if you take control of your spending you will be able to see where you can make changes. It can be a challenge, but if you stick to your plan you will find that you are saving hundreds of dollars every single month.