The Risky Side of Investing- Is it Worth it to You?

The following article is a guest post. The opinions of guest writers are their own and not necessarily those of the owner of this blog.
-------

The Risky Side of Investing- Is it Worth it to You?


No matter how you look at it, there is a lot of risk involved with investing of any kind. On the other hand, investing also brings with it the opportunity for reward. To decide if the risk is worth it to you or not you need to understand the unique relationship that exists between the two elements.



What is the Risk All About?



When it comes to the risk inherent in investing, there is a rule of thumb that states, “The higher the risk, the higher the potential return.” That is all fine and good but an additional point needs to be added to make this statement even more accurate. Instead the statement should read, “The higher the risk, the higher the potential return, and the less likely it will achieve the higher return.”



Deciding what you can comfortably live with in the world of investing is paramount. You need to be able to balance out the risk you are taking with the possible reward that could result.




Loss of Money



Many people look at investing in terms of the likelihood that they will lose money. When contemplating an investment, you need to decide if keeping the principal of your money is more important than the possibility of higher returns. You also need to ask yourself if you will be able to achieve your investment goals. If you lose instead of gain you do not want to shortchange yourself on your retirement fund. You also need to ask yourself if the added risk is worth it in order to achieve higher returns? Some people are more comfortable with risk exposure than others. There are investments that carry a minimum of risk; however the opportunity for return is often minimal as well.



Financial Goals



In order to understand whether you stand a chance of achieving your financial goals or not you need to consider the amount of money you have invested; the length of time invested; the rate of growth or return; and the fees, inflation and taxes that will cut into your return. If you are not willing to take on much risk then you must bear in mind that the return you earn will be less. In order to compensate for the lower anticipated return you should increase the money that you invest as well as the duration of time you invest it for.

------
The opinions of guest writers are their own and not necessarily those of the owner of this blog.

Save Big With the Entertainment Book

The opinions of guest writers are their own and not necessarily those of the owner of this blog.

----------

by Heather Johnson

One way to obtain a lot of discounts at local restaurants, stores and more is by purchasing the Entertainment Book. Couponers are all too familiar with this holy grail of savings. Each year, Entertainment Publications releases a new book that is filled with coupons, special offers and more. Each book is specific to a certain area, tailoring its offers to businesses and services that are readily available near you.

Many people use the Entertainment Book for traveling on a budget. Since the book pays for itself with
one or two coupons, it is well worth it to purchase an issue that is local to the town(s) you will be traveling through. In fact, each book contains at least $10,000 worth of travel discounts alone. Not bad for
something that costs $25 - $40 (depending on location).

If you enjoy going out but are on a budget, the Entertainment Book also includes $4,000 - $8,000
in local merchant coupons. This includes restaurants, movie theaters, sporting events, amusement parks, department stores and more. The books often sell out quickly in major metropolitan areas, so it is wise to
jump on the deal early in the year.

This post may read like an ad, but it is not. I use the Entertainment Book throughout the year.
In fact, I often buy at least two. The reason why I am writing about it now is because the book is on sale for only $9.99 until the end of May. This is over half off the normal price and the book definitely
pays for itself with one coupon if you buy it at this reduced value.

Heather Johnson is a regular
commentator on the subject of best credit cards. She welcomes your feedback and potential
job inquiries at heatherjohnson2323 at gmail dot com.

------
The opinions of guest writers are their own and not necessarily those of the owner of this blog.
---
go ahead share your thoughts with me now.

Get Paid to Sign Up, Refer Others, Read E-Mail, Complete Offers, and More!

Person-to-person lending risky, but is it the future?

Guest post by Michael Hooper. Mr. Hooper is a columnist for the Topeka Capital Journal, in Topeka, KS. The opinions of Mr. Hooper are his own and not necessarily those of the owner of this blog who may or may not agree with them.

---

Lending money has become easier with the emerging popularity of Internet Web sites that help administer person-to-person loans.

Among the sites gaining popularity are prosper.com, launched in February 2006 in San Francisco, and zopa.com, a London-based company that recently entered the U.S. and Italy markets.
How it works

At prosper.com, those wanting to borrow money create a profile, where they may post pictures of their family or business and explain why they need the money.

prosper does a credit check on the borrower.

The borrower sets the maximum interest rate he or she is willing to pay. The site limits the amount a person can borrow to $25,000.

Lenders bid on your loan in an online auction. Once the auction ends, prosper takes the bids with the lowest rates and combines them into one simple loan to the borrower.

prosper handles all ongoing loan administration tasks, including loan repayment and collections on behalf of the matched borrowers and lenders.

The term on every Prosper loan is three years, with no pre-payment penalty. Funding for each loan usually comes from multiple lenders.

People who register as Prosper lenders set the minimum interest rate they are willing to earn and bid in increments of $50 to $25,000 on loan listings they select, said Tiffany Fox, communications director for prosper.com.

A lender, for example, may reduce risk by lending $1,000 to 20 different borrowers who have strong credit scores.

"We see this as next generation of online lending sites," Fox said.

Risky business?

Some traditional bankers are skeptical of the person-to-person lending sites.

John Hall, spokesman for the American Bankers Association, said there always has been a need for "this risky type of lending."

"But," he said, "we feel it's most appropriate to go to a federally examined or audited lender when it comes to making a loan or making a deposit. Banks have the strength and credit of federal government that deposits are protected up to $100,000 by Federal Deposit Insurance Corp."

Fox said so far, the overall default rate for loans at Prosper is 3 percent, but she said that figure will tick higher. There is no guarantee borrowers will pay back the loans, she said.

Lenders may minimize risk by spreading out their loans to only prime borrowers, Fox said.

Blogs about prosper.com show favorable reviews by borrowers, but some lenders have complained about the timeliness of collections.

"Their collections process is a mess, and most lenders with established loan portfolios are either losing money or barely making more than they would in a savings account," one reviewer wrote at techcrunch.com.

Online lending is regulated by state and federal agencies. In Kansas, the interest rate cap is 21 percent, but in some states, interest rates may go as high as 36 percent.

---

Guest post by Michael Hooper. Mr. Hooper is a columnist for the Topeka Capital Journal, in Topeka, KS. The opinions of Mr. Hooper are his own and not necessarily those of the owner of this blog who may or may not agree with them.

Not All Credit Cards Deserve the Bad Name We've Given Them

Debbie Dragon is an editor for CreditorWeb.com, a site that provides visitors with advice and information they need to compare credit card offers. The opinions of Ms. Dragon are her own and not necessarily those of the owner of this blog.
--------

It's true that credit cards are the reason why many people find themselves in over their heads in debt. Often, it's not even the amount of money we charged on the card that causes the main problem- but when we don't pay the cards off in full each month, the balance that gets carried over from one month to the next is subject to a variety of fees, interest and in some cases- late fees - if we had trouble getting the payment there on time. Every month that we only make a minimum payment on what we owe, we hurt ourselves financially.

When a credit card is used responsibly, however, and the card itself has reasonable fees- it can actually help an individual improve their financial situation.

So how do you find a credit card with reasonable fees? A card that can actually help our financial situation? Here is what you should look for when comparing various card offers:

1. Grace Period. There are actually some credit cards that do not offer a grace period, and you should steer clear of them at all costs! A grace period is the period of time that you have to make your payment without being charged interest or fees on the money you borrowed. Make the most of the grace period by making all of your purchases in full during this time and your credit card will work exactly like cash- and you'll never pay a dime in interest, finance fees, or late fees.



2. Balance transfer offers. If you already have considerable credit card debt, you will want to find a credit card that will give you a no interest or low interest offer on balances you transfer to your new card. The best cards offer the lower interest rate on transferred balances for the life of the balance; but even if you can save for six months to a year on that debt, you can make a lot of progress towards paying that debt off.



3. Check into the terms and agreements, particularly the default agreement (you know, the fine print!) Many credit cards indicate that they can raise your interest rate at any time, and for any reason. If possible, you want to avoid these cards and focus on the credit cards that only raise the interest rate you pay if you are late or miss a payment. Be careful, as many of the large credit card companies have started raising interest rates for cardholders who are late on ANY credit card, not just their card!



Weeding your way through credit card offers can seem like a challenging task, but if you focus on the aspects that are important, not only can you get a card with reasonable rates, but with some careful financial savvy- you can actually make your credit cards work with you instead of against you!

--------
Debbie is an editor for CreditorWeb.com, a site that provides visitors with
advice and information they need to compare credit card offers.

Is a Mortgage Always Better?

Note from Prince of Thrift: The opinions of Guest Posters are their own
and the owner of this blog may or may not agree with them.

By Tom Kerr - MortgageLoan.com

Many consumers find debt distasteful. If given the choice, they’d use a windfall from a generous inheritance or hitting the lottery to pay off their mortgages completely. But carrying a reasonable amount of debt can be a wise financial strategy. If you’re fortunate enough to be in this circumstance, it’s important to consider all your options.


In the world of financial management, mortgage debt is considered “good debt” because it's secured by property. Even so, it’s still somewhat unpleasant because having a mortgage means paying interest. Over the life of a loan, you can wind up paying tens of thousands of dollars in interest, not counting the costs involved if you refinance along the way. But as the saying goes, there are two sides to every coin. Many financial experts are quick to add that there are two sides to debt, as well.


To pay or not to pay?


There are some distinct advantages to having a mortgage:


Putting all your investment money into your home to pay off your mortgage can expose you to the risk of having all your eggs in one basket. A fire, flood, or other natural disaster could wipe out your equity, and insurance might not cover the loss.


Similarly, you could lose your home’s equity through a lawsuit against your property if someone were injured there. An unexpected divorce, contractor’s lien, environmental hazard, or land dispute could also put it at risk through litigation.


By paying off your mortgage, you lose one of the only substantial tax deductions allowed by the IRS. Deductions also apply to most refinances and home equity loans.


Lack of liquidity


One of the biggest reasons not to pay off all your mortgage debt is that cash tied up in property lacks liquidity. In other words, it’s hard to get to in a hurry, as many homeowners learned during the current housing slowdown. Unless you don’t need that money, it’s a good idea to keep a portion of it invested in something other than real estate, like stocks, bonds, certificates of deposit, or other assets that can be easily turned into liquid cash. That way, you can take advantage of profitable investment opportunities to make your money work harder than it does in real estate. If an emergency requires that you get to your money fast, you’ll have easy access.


There are also distinct advantages to paying off your debts. That’s why many economists advocate against being leveraged to the hilt. Instead, they suggest balancing your asset portfolio by maintaining a small, strategic level of mortgage debt based on the points mentioned above. Then pay off the rest of your red ink, put most of your cash into dependable investments that will ensure that your net worth steadily grows, and pat yourself on the back for being essentially debt-free.

101 Ways to Save One Dollar a Week

As a follow up to my 25 frugal tips to save money, I am posting the following article that was originally posted at Care One Credit Counseling. Thanks to Rich McIver emailing me the link.

Is your rainy day fund all wet? Every paycheck, you plan to save, but it seems like there's nothing left over after bills and creditors get their share. It's getting tougher to pay the bills on time, let alone save any money! Don't fret; there's a solution. There are a lot of ways to put another dollar in your pocket here and there. Here's what you need to do:

1. Draw up your current budget: First things first; find out where your money goes. Calculate your monthly income and make a list of all expenses.

Now that you know how much money you make and spend, it's time to cast a critical eye on expenses. Let's find out where you can trim the fat from your budget.
Around The House

Cutting down on waste and excess around your home is one of the easiest ways to save money. Are you one of those people who leaves lights on all around the house? With three TVs running? We're talking to you.

This is the most important key. Although, I am still not very good at getting rid of the waste.

2. Adjust your thermostat: Turn your thermostat up a couple of degrees in the summer and down a few in the winter. Every degree saves approximately 3 percent in energy costs. If your home is empty during the day, consider buying a programmable thermostat to avoid heating and cooling your home when no one's there. Set the thermostat to turn the air or heat on about 30 minutes before you get home.

Excellent idea! I keep the thermostat at 67 in the winter.

3. Turn off the lights: If you're watching TV in the living room, turn off the lights in the kitchen. If you're eating dinner in the dining room, turn off the lights in the living room. Don't waste energy by burning lights in rooms that you're not occupying.
4. Use low energy light bulbs: Compact fluorescent light bulbs use only a fraction of the electricity that regular incandescent bulbs use. Plus they last much, much longer.

Great idea. I have changed several bulbs and bought a number of CFL's to replace others as they burn out.

5. Change your air filters: A clogged or dirty air filter reduces airflow to the heating or AC unit, causing it to work harder and use more energy. Change your filters once a month.

I need to do better at this

6. Shut doors and windows: Your dad was right: you really shouldn't pay to heat or cool the outdoors.
7. Turn off your computer: Computers suck up a lot of energy. Most will go to sleep after a period of sitting idle, but take it one step further by just turning it off.
8. Simplify your cable: Do you really need 100 movie channels? Consider a smaller package.
9. Downgrade your phone services: When's the last time you used call forwarding or had a three way chat? Only use services that are absolutely necessary. Take advantage of free long distance with your cell phone if possible. Consider using VoIP or a cell phone to eliminate your land line.
10. Consolidate services: Most of the big telecom companies and cable providers now offer discounts if you use them for combined cable, telephone and internet service.
11. Use cloth napkins, towels and diapers: Paper napkins, paper towels and disposable diapers are easy and convenient, but cloth can be washed and used again. Use these to save money and the environment.
12. Do the dishes: Use reusable dishes for your meals instead of paper plates and cups.
13. Hang your clothes out to dry: The dryer uses a lot of energy. It takes a lot to run, plus it can also heat up your house, causing your air conditioner to have to work harder. Accomplish that fresh, dried-on-the-line smell in your own backyard.
14. Buy energy efficient appliances: If you are in the market for new appliances, take energy efficiency into account. Look for items with the Energy Star label.
15. Get an energy audit: Your electric or gas company can send someone to your home to tell you specifically what you can do to make your home more energy efficient.
16. Enroll in cost saving programs: Ask your energy company if they offer any load management, off-hour rate or other cost saving programs that you can take advantage of.
17. Close the flu damper in your fireplace: Don't let hot or cold air escape out of the fireplace. Keep the flu closed.
18. Insulate your water heater: Pack insulation around your water heater to help retain heat. Also try turning the heater's thermostat down a few degrees.
19. Install low flow showerheads: You can cut your shower's water consumption in half by installing one of these.
20. Change washing machine settings: Heating water uses energy and costs money. Wash your clothes in warm or cold water instead of hot.
21. Use a gas dryer: Gas dryers use less energy than their electric counterparts.
22. Open a window: Take advantage of Mother Nature. If the weather's nice, turn off the air or heat and open the windows.
23. Eliminate drafts: Use caulk or weather-stripping to strengthen the seal around doors and windows to eliminate the loss of hot or cool air.
24. Shade your windows: Close shades, blinds or drapes during the day to keep light and heat from coming in through the windows. Direct sunlight will heat your home and cause the AC to work harder. Alternately, uncovering windows to let sun in could be helpful for heating in the winter.
25. Plant a tree: Strategic placement of trees and bushes around your home can increase shade and decrease energy consumption. Try shading your air conditioning unit as well as windows that get a lot of sun. Just three trees can save between $100 and $250 a year in heating and cooling costs.

An energy efficient home is only part of the equation. Transportation costs can put a huge dent in your budget. Let's take a look at what you can do to make hitting the road more cost effective.
On The Road

Getting from point A to point B can really cut into your budget. Here's how to get where you need to go without breaking the bank.

26. Get regular tune-ups: Keep all of the moving parts in your car running smoothly to get better gas mileage and prolong the life of your vehicle.
27. Turn off the AC: Roll down your windows and let the air cool your car.
28. Keep air in your tires: Underinflated or flat tires will reduce gas mileage.
29. Shop around for gas: Before you pull over and start filling up, shop around for the cheapest place to get gas.
30. Look for frequent shopper deals on gas: Some grocery stores offer 3 cents off per gallon with a frequent shopper card. Save even more when you do more business with them, like 10 cents off per gallon when you buy $100 worth of groceries.
31. Shop for gas mileage: If you're car shopping, avoid the Hummers. Focus on smaller cars that get good gas mileage.
32. Try to avoid traffic: Idling in traffic can burn up lots of gas. Try to avoid rush hour traffic as much as possible.
33. Consider the savings: It costs an average of 36 cents per mile to own and operate an automobile. Don't drive all the way across town to save a nickel on a gallon of milk.
34. Keep moving: Stop-and-go driving not only wears out your engine faster, but also uses more gas than moving at a steady pace.
35. Use cruise control: If you're not going to be hitting any stop signs or traffic lights, set your cruise control to conserve gas.
36. Slow down: It's simple. Drive the speed limit to save gas as well as make your life a whole lot easier.
37. Keep it light: Remove any heavy, unnecessary items from your car. An extra 100 pounds can decrease fuel economy of an average automobile by about one percent.
38. Find the shortest route: The shorter the distance you have to travel, the less gas you will have to use.
39. Combine errands: Run as many errands as you can in one trip to cut down on your driving time.
40. Carpool: If your co-workers live nearby, take turns driving each other to work. If you're going out with your friends or family, fit as many people as you can into a single vehicle.
41. Use public transportation: If the option is available, take a bus, train or taxi instead of driving.
42. Take a walk: If you live close enough, try walking to work. It's free and healthy.
43. Ride a bike: You may live a little too far to walk, but you can try hopping on a bicycle to make your commute. Again, this option is free and healthy.

Now you know how to save money on your drive to the grocery store, but it's also important to cut costs once inside.
Food For Thought

Watching your order total at the checkout can be daunting. Take these steps to help ease the pain.

44. Plan ahead: Map out your meals for the entire week. Go through your cabinets, fridge and pantry, making a list of any items you'll need for your planned meals.
45. Cut coupons: Savings of 25 cents here and 75 cents there can add up fast.
46. Look for sales: Ads for savings are what make the Sunday paper so thick. Take advantage of them. Look for flyers throughout the week, pay attention to TV commercials and check junk mail for coupons before you throw it away.
47. Shop around: Don't limit yourself to one grocery store. One store may have great dairy prices but overpriced produce. Another could have good meat sales, but your favorite cereal is too expensive. Pick and choose what you'll buy from each store. However, if you bring sales flyers from the competition, many stores will match the price.
48. Go generic: Just about every product has a generic counterpart at a much lower price. Buy these products; you can get the same thing for a lot less money.
49. Don't stray from your list: If you didn't write it on your list, you don't need it.
50. Bring your calculator: Is 24 ounces for $1.00 better than 36 ounces for $1.25? Bring a calculator with you to figure out the best deal.
51. Buy in bulk: It never hurts to stock up on items you use frequently. Bulk is often cheaper, so fill your cart. Be sure that you are able to use the item before it goes bad.
52. Don't shop on an empty stomach: Everything looks good when you're hungry. Eat before you shop so you're less tempted to pick up anything and everything that looks good.
53. Check your receipt: Before you leave the store, take a glance at your receipt to make sure everything checks out. Items may ring up at an incorrect price or be scanned too many times.
54. Grow your own food: Plant some herbs and vegetables in a small garden out back. You may not be able to replicate the produce aisle, but it can help cut your grocery bill.

Trimming your grocery bill will work wonders when it comes to stocking up your pantry, but even a house full of food won't satisfy a craving for your favorite restaurant.
Wining And Dining

Eating macaroni and cheese, salad and Hamburger Helper every night can get old fast. Treat yourself to a meal at a restaurant from time to time, just be sure to keep it within reason.

55. Limit yourself: Avoid making restaurant visits an everyday event. Treat yourself once a week or once a month.
56. Look for new restaurants: Lots of new restaurants offer discounts and specials to attract customers.
57. Go out for lunch instead of dinner: Most restaurants are cheaper at lunchtime. When you decide to treat yourself, go out to lunch and stay in for dinner.
58. Avoid weekends: Everybody goes out to eat on the weekends. Restaurants may limit specials and coupons during this time. For the best deals, visit during the week.
59. Drink water: Save a few dollars on your bill by drinking water instead of soda or alcohol.
60. Bring leftovers home: Restaurant portions are huge, generally twice the size of a recommended serving. Ask for a doggy bag and bring the leftovers home.

Now that you're operating on a full stomach, it's time to take a look at what you're wearing and how you decorate your home.
Don't Lose Your Shirt

The sheer volume of sales flyers, coupons and advertising that we are inundated with is enough to make your head spin. Cut through the clutter: focus on what you're looking for and compare prices for the best deal.

61. Distinguish between needs and wants: Before you start buying toys and specialty items, decide what you need more: the product or the money.
62. Look for sales: You can often find everything you need on the sale rack.
63. Wait for end of season sales: Pick up next year's bathing suit for a fraction of the cost at the end of the summer.
64. Shop online: The Internet offers many items used or at a discount. Try to find sites that offer free shipping.
65. Shop at closeout stores: They may not be pretty, but you can find great deals at stores like Big Lots, Marshalls and TJ Maxx.
66. Head to the second-hand store: Goodwill, thrift stores and pawn shops offer many quality used goods at low prices.
67. Find a garage sale: One man's junk is another's treasure.
68. Consider alternatives: Expensive does not always equal quality. Check out professional ratings from Consumer Reports and read what customers say online to find out if you're getting biggest bang for your buck.
69. Avoid fashion trends: Don't spend a ton of money on an item that you won't want to wear next month. Stick with classic styles that you'll wear often.

Once you've got your necessities down, you can focus on how to save money on the fun stuff.
Everybody Have Fun Tonight

Entertaining yourself doesn't have to mean spending a lot of money. It doesn't even have to include going out.

70. Get cheap novels: Instead of filling your bookshelves with brand new books, consider buying used. There are chain stores that offer used books at half and even a quarter of the cover price. Libraries often have great sales as well. Better yet, borrow books, movies and CDs for free at the library. Once there, you can also surf the internet as well as read magazines and newspapers.
71. Cut down on subscriptions: Pick one or two magazines that you enjoy the most and cancel the rest.
72. Share with friends: Go through old books or movies that you have lying around and propose a trade with one of your friends for something that you haven't read or seen yet.
73. Have a game night: Instead of going out, invite friends and family over for board games.
74. Host a potluck: Invite people over for dinner and have each person bring a separate dish. It's fun and much cheaper than going out.
75. Catch a matinee: Movies at 2PM are the same as 7PM. Beat the crowd and save money by catching the early show.
76. Go to a discount theater: Lots of cities have theaters that show movies after their initial release. Check out movies on the big screen at big savings.
77. Don't buy popcorn: Tickets are expensive enough. Don't pay for an overpriced popcorn and Coke, too. Eat something before you go and drink water if you get thirsty.
78. Rent a movie: Bypass the high ticket prices and expensive snacks altogether. Head over to the video store and rent a movie.
79. Support your Alma mater: High school and college sporting events can provide cheap entertainment.
80. Watch tomorrow's stars today: Many large cities host minor league games that cost a fraction of the big league price.
81. Check out the local art scene: Poetry readings, art openings, high school plays, and community theater programs can be fun and inexpensive.
82. Watch for free events: Check the newspaper and Internet for open houses, festivals, library events and other community gatherings in your area.
83. Members only: Museums and zoos often have deals and special events for members. Sign up to support the arts, furry friends and your savings.
84. Explore the great outdoors: Pack a picnic and go for a hike at a park or recreational area nearby. You can even pack a tent and sleeping bag to stay for the weekend.
85. Go for a swim: Enjoy some good clean fun in the sun: head to the lake or beach.
86. Listen for free tickets: Newspapers and radio stations often hold contests to give away free movie and concert tickets.

Saving money on entertainment is great, but be careful how you take care of the bill. Plastic can be hazardous to your bank account's health.
Plastic Money

Credit cards are not free money. They can become a black hole for your finances in the blink of an eye. Use them responsibly. Remember: at some point, you'll have to pay them back.

87. You only need one: You can get into enough trouble with one credit card; don't compound the risk by getting more.
88. Cut up the rest: Once you've chosen your card to keep, destroy the others. Be sure to also cancel the associated account.
89. In case of emergency: Consider your credit card a safety net. Don't use it for anything that you don't absolutely need.
90. Pay off the balance: As soon as you get your statement, pay off the balance. Minimum payments don't cover much more than the interest charge.
91. Look for hidden fees: Look closely at your statement and take note of what kind of fees you are paying out. Programs like credit life insurance, credit disability insurance, involuntary unemployment credit insurance and credit property insurance are generally unnecessary. Make sure you don't have to pay for them.
92. Get a low interest rate: Zero percent interest doesn't last forever. Many credit cards offer this as an introductory rate, but before you jump at this opportunity, find out how long it lasts and what your rate will be when it expires.
93. Watch your statement: On top of hidden fees, you may also find double or fraudulent charges that you will need to dispute.
94. Utilize rewards: Rewards programs are everywhere these days. If you have the discipline to pay off your balance each month, use your card to pay all of your bills and rack up lots of points. Just be sure to use the card responsibly. The rewards won't even cover the interest that you'll pay if you carry a balance.
95. Say no to the free shirt: Just about everywhere you go, there's somebody trying to get you to sign up for their credit card. A free shirt, free hat, or a ten percent discount may be appealing, but these little freebies can hurt you in the long run. Even if you never use the card, the application alone can bring down your credit rating.
96. Pay on time: Late payments are messy. They incur fees and allow the credit card company to raise your interest rates. Make a note on your calendar and pay ahead of time.

Staying out of debt is a big part of building a savings. Here are a few more of the little things you can do.
This And That

Consider these extra tricks when trying to save a few bucks.

97. Take your lunch to work: Instead of paying five or six dollars for a "value" meal at lunch every day, bring a sandwich, apple and drink from home.
98. Go to beauty school: Time for a manicure, pedicure or haircut? Go to a training salon and get professional work done at a fraction of the cost.
99. Quit smoking: It's much easier said than done, but smokers, you're burning up a gold mine. Smoking a pack a day costs about $1,460 a year.
100. Keep charity receipts: Any kind of donations that you make throughout the year can be used as a tax write off.
101. Keep less money available: Leave your credit cards at home and take only the cash you'

ll need. If you run short, put something back.

FPU Class Totals

Well, as Kevin posted, our very first Financial Peace University class finished up last night. We did it! The final class totals are below:

23 people (10 married couples, and 3 singles)
Class timeline - April 26, 2006 - July 19, 2006

Total Debt Paid off during this class (not including mortgages) - $38,931.16
Total Savings Increase during this class - $18,744.53

The average student paid off over $2,700 in debt while saving over $1,300 cash into an emergency fund. That's a change in position of over $4,000!

The maximum savings amount was $6,200.

The maximum debt paid off was $12,112.00!!!

I talked to the couple that paid off over $12,000 in 13 weeks. I asked them "how in the world did you do that? (I know them...they are a single income earning family earning the average American family's income). The answer I got was "Intensity, Man...intensity".

They are absolutely right. When you take the bull by the horns and say "I'VE HAD IT" and REFUSE to live in bondage any longer...that's the day you change your life.

I've been kinda-sorta doing the get outta debt thing, you know...kinda sorta...for about 18 months now. Leading this class and helping others has given me the KICK IN THE BUTT that I needed. What I realized is that YOU CAN'T wander your way out of debt. You have to kick it into gear. My wife and I set a goal for ourselves to pay off our van (roughly $5500 as of 7/1/06) by November 1, 2006. Keep in mind she's a stay-at-home mom and I make an average income...like most of us. However, we managed to put almost $3k on the van in JULY ALONE...and the month's not over. I've been working, working, working, busting my tail in the hot Kansas summer heat...but you know what? We're going to beat that goal. That's exactly what we needed. July's not even over and we have less than $2,500 left on that van. Look out August, here we come!

Here's the point of my rant. No more excuses. Let's get the pain over with now. YOU are responsible for tomorrow and every day for the rest of your life. Let's quit living TGIF to OGIM and have a plan for our futures!

I'm very proud of our class. I'm so proud that I'm hosting another one this fall. Hopefully we'll convince enough more from now until then to fill up the room, standing room only!

Are you ready to change your family tree?

Bargaining in our Culture

In our last Financial Peace University lesson "Buyer Beware", the discussion question was asked:

What phenomenon in our culture has caused people to stop finding good bargains?

We had many responses from the class, including the availability of credit cards and the wealth of our country. However, I believe there's more to it than that.

What I believe is the main resaon for our tendancy to stop bargaining for things is perception. What I mean is that society has taught us through commercials, tv, movies, etc. that "rich" people throw away money, often frivously. But do they? ForbesAutos.com did a report showing what the top 10 billionaires (bilionaires) in the world drive. The answers might surprise you.

To carry my idea further, the reason I believe Americans have stopped bargaining for deals is that since society believes the wealthy throw away money, the ability of one to spend money is perceived as one's worth, or value. Thus, to bargain for something would be to say "I can't afford this, so I need to pay less"...inferring that our value is less.

However, the correct assumption would be "I can afford this, but I don't think it's worth what you are asking for it."

Do you bargain for stuff? What types of things do you "never pay retail" for? What are some of the things you do to get a bargain?