Suzie Orman and 2009

Just in time for New Years resolutions, Suze Orman has a new book out "Suze Orman's 2009 Action Plan". Something that you can put on your list to get from the library this year. Of course you can already get it in paperback and at the low cost of $9.99 from Borders. I will see if they have it available on my Kindle and give you a review sometime next year.

One thing that I hope will help next year is that I will be taking public transportation again starting Monday. Since my office has moved to a new location and there is a bus stop next to the parking lot, I will be taking the bus and metro again next year.

My car is back in the shop, so I have also decided it is time to get a new car. My car is starting to cost more in repairs than it would be making a payment on a car. So on Friday I will be looking at new vehicles. Since I am back taking public transportation to and from work, I shouldn't rack up the miles on the car as fast as usual. I currently have a 2001 Ford Escape with over 240,000 miles on it. I have to say that it was a very good vehicle and only started needing major repairs in the last 2 years. It didn't do as well as the Pontiac Sunbird which I had over 350,000 miles on it when I traded it in for the Escape. We hope to keep the Escape for my husband to use to go back and forth to work in and save the F150 for hauling stuff and pulling the DJ trailer. We will see how things work out.

I hope everyone has a wonderful and safe New Years Eve celebration.

Oprah, Jean Chatzky, and Money

Oprah's web site has a great article by Jean Chatzky on different ways to save money. Believe it or not, they have a couple of suggestions that I have not heard. There are also a lot of web sites to use.

Zwaggle.com is a web site for mom's to buy and sell children's clothes. It would be a great place to shop until yard sale season is back in swing.

Rent tools that you only need once or twice a year. I know that my husband rents specific tools that he only needs once a year or more. This cuts down on clutter (which we have a lot of) and high cost of these tools. You can also borrow them from friends, family, and neighbors. Alan also borrows tools from his step-dad, which saves a lot of money.

Freecycle.org has thousands of groups that put stuff on the site that they no longer need free for the taking. You can find a group that is local to you.

There is also a section that warns you to be cautious on any website. Really read the fine print and do some research before you buy items. I know that I didn't read some fine print when I signed up to sell some books on Amazon and found that I actually signed up for a store, not an individual seller. I was being charged $39.99 a month and I didn't have anything to sell. I was able to change my status and was refunded the money, but it was a bit of a hassle for both me and Amazon because I didn't read what I was signing up for.

Check out the article and I hope that you are setting your VCR or Tivo to tape Oprah's Best Life shows next week. I am hoping to pick up on a few tips for all areas of my life.

Illness and Bad Economy

Sorry I have not been posting lately. My husband and I have been sick since Christmas. I don't know if it is because of the extreme weather changes, food, stress, or all of the above. But I have had a lot of time to sit and watch the news and it is still depressing.

Just tonight the news reports that more business are closing their doors because people are not spending money. In fact they interviewed some shoppers and they plainly stated that they are not buying anything more than what they need. I know that I have found a few of my favorite stores closing their doors. Now I am turning to the Internet to find new places to buy my favorite items (hopefully at a cheaper price).

The predictions that things are not going to get any better next year is only increasing the intensive for people to save money as much as possible. I know that I am going to fine tune my coupon and discount system (more on that in a later post). I am also increasing my savings and not in my 401K.

I hope that the stress of fiances is not making you sick and that you had a wonderful Christmas. I hope that we all can help each other through 2009.

One good note, oil prices are down and that means gas prices are down. I had to tell my husband I told you so when gas went below $1.50 a gallon. He said that would never happen again. Now if I could wish it to get closer to $1.00 a gallon.

Duck Tape and T-Shirt Bags

I am officially on vacation and I was watching the Today Show. Sometimes they have some really nifty ways to save some money. Today they not only had a really cool way to save money, but a really cool way to go green.

Simply Sublime has a book that shows you how to make a bag out of a t-shirt, duck tape, and staples. A bag you can make in about 45 minutes without having to sew a thing. You can make one to give a Christmas present in and that person can re-use the bag.

They have a book out Simply Sublime Bags: 30 No-Sew, Low-Sew Projects. I am sure you can get a copy from the Library and make a few items for the up coming year.

This is something you don't need electricity to do and will keep you and the kids occupied while waiting out all the crappy weather. You can get started making gifts and gift bags for birthdays, anniversaries, weddings, and Christmas presents for next year.

Happy bag making!!!

Spending Less Changes Tradition

While going through my normal routine of scanning the news, I found a couple of interesting video articles. One was using the Internet to find a partner and the other was that more people are staying home for the Holidays.

There is a new frugal way to date. Online dating services have been around for a few years now. But savvy single people are using the online services to get to know people before going on that first date. Not only does this practice cut down on time, but the expense of going out. A lawyer says that he has cut down his expenses in half by not having to take someone out only to discover that they have nothing in common. He communicates with a potential online for a few weeks before he decides the expense is worth meeting someone. Just be careful, people can lie better online than in person.

The other article says that more people are staying home this holiday season because they don't have the money to travel home. More people are finding new ways to celebrate the holidays and forming new traditions instead of traveling home to participate in the old. It is interesting how much society changes when money is tight. To bad we all didn't tighten our belts before we had to pinch pennies. The economy wouldn't be so bad right now. I guess you live and you learn.

I hope no matter were you are that you have a wonderful, happy, and safe holiday season.

The Cheapest Family in America

I found an article about a family of 7 who has a monthly, yes monthly grocery bill of $350.00. I thought that I was doing pretty good. Now I am going to have to really up the ante this next year.

The Economides live off of $44k a year. They started off a normal American family spending money and had no budget. Then they went to a financial planning course and decided to use a budget. It became a game and then escalated from there.

The kids don't throw a fit if they don't get the newest, brightest, most expensive gift for Christmas. In fact they love trying to out do each other in how much they can save.

"Steve compared the family’s outlook to the way Americans approached life in the days of “Little House on the Prairie.” “You learn to appreciate life and people more than you appreciate stuff,” he said. “You’ve got to focus on changing the perspective. It’s not always new, it’s not always expensive that says love.”

Now if I can get my husband to under stand to appreciate people more than stuff. My Christmas wish for everyone would be to appreciate people more than stuff. Stuff can be replaced, people can't

So, how much have you saved this Christmas?

New Credit Card Rules

The Government finally put some regulations on the credit card companies. Unfortunately they won't go into effect until 2010. But these rules may not be good news for everyone.

According to MSNBC report, credit card companies will no longer be able to raise interest rates on existing balances, only new purchases, cash advance, and balance transfers. This is the one I like: "Under the new rules, credit card lenders will be required to apply any payment above the minimum to the part of the balance with the highest interest rate."

You will receive a 45 day notice when changes will be made to the current agreement. That is up from the current 15 day notice.

"The rules cap that fee at 50 percent of the credit limit and allow the cardholder to pay off the initial balance over a year, not immediately."

Unfortunately this may mean higher interest rates all around. It will also mean that it will be harder for people who have low credit scores to even get a credit card. This may mean that the credit card companies do as much damage before they have to comply with the new rules.

At this point I would watch credit card statements very closely and pay them off as quickly as possible. Most of this will have no effect on people who pay off their balances every month. But I would watch my statements to make sure the credit card companies don't start charging extra fees just for having an account.

Constant vigilance and Madeye Moody would say (Harry Potter reference).

Credit Card Smart

While cleaning this morning I came across a folder with some pamphlets. Inside was 10 ways to build credit, control credit card spending, and protect your credit information.

1. Build a New Credit Record: Many people have credit problems these days. So how do you get back on track. First, check your credit report and make sure everything is correct. To reestablish credit, take a look at your income vs. outgoing expenses. Talk to current lenders about working out a plan to pay off debts. The National Foundation for Credit Counseling (800-388-2227) or Myvesta.org (800-680-3328) can help. Start making loan and credit card payments on time and for the full minimum amount. Once that is established, you can apply for a secured credit card. To get a secured credit card you must deposit money into a savings account as collateral. Generally the credit limit will be 50% to 100% of the money in the savings account. You will pay interest on unpaid balances. You can apply for a secured credit card at any bank or credit union.
2. Check your Credit Report and make sure there are no discrepancies and up-to-date. Make sure it has your current address, employers information, identification information, and any public record information (bankruptcies, foreclosures, court orders, etc.) If possible, pay more than the minimum payment and pay on time to improve your credit.
3. Choose the best credit card for you. Make sure you look at all the information like percentage rates, what is the grace period, does it charge annual fees, what about any transaction fees, or periodic rate. How do you use your credit card? You may want to look at a credit card company that gives you cash back for your top 3 to 5 spending habits (hotel, gas, prescriptions, groceries).
4. Choose the Best Credit card Interest Rate. Cash Back Credit Cards lists different cards and what they charge in interest and fees and how they give you cash back for your purchases. Use this web site to find the lowest credit card interest rate for you.
   
5. Control your Holiday Credit Card Debt. Most people are opting to use cash this year instead of credit cards. If you do need to use a credit card, pick just one to use for all your spending. Try to pick one that will give you cash back and the lowest interest rate for most of your purchases. Try making home made gifts like tree ornaments, a tray of cookies and candies, or crochet a blanket. If your credit card offers to skip a payment in January, go ahead and make that payment. It will cost you less in interest fees.
6. Decide how many credit cards you need. I know that I have way to many credit cards, but we only use one or two. If you are having problems with credit, it may be better to cancel all credit cards except one or two. Yes, it will ding your credit score, but in the long run it will help. You will not be tempted to max out all of the credit cards and get yourself back into trouble. Keep a copy of your cancellation letter on file in case there become a problem down the road.
7. Decide how much credit is too much. Too much credit can lead to problems. Add up all your credit except mortgage or rent. List all your loans as well as credit cards. Then enter your average monthly payments for each loan and the amount usually paid each month on credit cards. Now divide your total monthly payments by the total amount you bring home every month. This gives you your debt rate. If it is over 12% you are in trouble.
8. Get rid of credit card debt. Stop making charges on credit cards and use cash. There are many ways to pay off credit cards. Pay off the card with the highest interest rate first or the one with the smallest balance. Then when that is payed off, use that money toward the next credit card or loan. If possible and the fees are low enough, transfer higher interest rate cards to a lower interest rate credit card.
9. Protect your credit information. Limit the number of credit cards you carry. Don't leave credit card receipts where someone can see your information. Make sure the clerk makes only one imprint of the card. When you receive a new card, cut up the old one, reconcile your receipts to your statement. If your purse or wallet is stolen, act as fast as possible and call your credit card companies to report the stolen cards. I know that my bank offers a program that you can register all your credit cards. So when you lose your purse you only have one phone number to call.
10. Fair credit reporting act update. You are entitled to a free copy of your credit report whenever you are turned down for a credit card, loan, or any benefit like renting an apartment. If you are a victim of identity theft, you can request a free credit report.

If you have more suggestions, please feel free to share them. I am off to make sure that my debt level isn't to high.

Free Shipping Thursday

Thursday, December 18th many online companies have declared Thursday, free shipping day. If you are still Christmas Shopping, you may want to wait until Thursday to avoid any shipping cost. You can go to Free Shipping Day to find out what companies are participating.

Happy Shopping!!!

New FICO Scoring System

I was looking at my email from Kiplinger. I was surprised to see that there is going to be a new FICO system rolled out next year.

The changes seem to be in good favor of those who work hard to pay their bills on time but forget a bill every so often. It seems that if you forgot to pay a credit card payment once in six months to a year, it will not hurt your credit score. We will no longer be lumped into the same category as those who are always behind in payments.

It will also focus on how much money you have borrowed, not how many accounts you have open. The article doesn't say anything about how long you have an account for. So I don't know if it will still count against you if you close certain accounts.

Those who try to use their parents or spouse to boost your credit score will be in a long hard wait. According to an article on Business, you can still be authorized to use a spouse's or parent's credit cards, but that account will no longer be used to figure your credit score. In order to establish credit, you will have to open your own accounts and make sure they are paid on time.

You can find out more about credit scores and how to improve them at myFico.com.

Popularity of the Public Library

It seems that the public library is seeing an increase in customers. I was watching the news the other day and they had a piece about the drastic increase in new library card holders.

People are cutting down on their spending and are now using the local library to check out books, movies, and music. Even students who can not afford a computer or books are now using their public library to use the computers and school books.

I know that I have been meaning to stop by the library to pick up some audio books to listen to on my way to and from work. I can only listen to Harry Potter so many times before I need a break. Maybe I can find a good book to help me save money in this economy.

Stories like this remind me that I don't need to go to Borders to get a book. I can save myself some time and money by going to the library which is much closer to my house. If you have access to a public library, pick up a good book to read while waiting out these winter storms.

Joke of the Day

I could not pass this up. This joke was sent to me by my other Aunt Paula.

My dear friends,

Somewhat embarrassing to admit, Christmas is tight this year so I will be making bedroom slippers for you all as gifts. Please let me know your sizes. You'll most likely agree that it's a splendid idea, and should you wish to do the same, I've included the instructions below.

How to make bedroom slippers out of maxi pads:

You need four maxi pads to make a pair.

Two of them get laid out flat, for the foot part.

The other two wrap around the toe area to form the top.

Tape or glue each side of the top pieces to the bottom of the foot part.

Decorate the tops with whatever you desire, silk flowers (this is most aesthetically appealing), etc.

These slippers are:

* Soft and Hygienic

* Non-slip grip strips on the soles

* Built in deodorant feature keeps feet smelling fresh

* No more bending over to mop up spills

* Disposable and biodegradable

* Environmentally safe

* Three convenient sizes: (1.) Regular, (2.) Light and (3.) Get out the Sand Bags.

I've attached a photo of the first pair I made so that you can see the nifty slippers for yourself....

Awaiting your response. It's crucial that I get the right size for each one of you.

I hope you have a wonderful Christmas.

Get Money for Saving Money

Suzie Orman has hooked up with TD Ameritrade to help you save money. You open a savings account and continue to add at least $100.00 per month to your account for 12 consecutive months and TD Ameritrade will add an additional $100.00.

For more information go to www.saveyourself.com. Just think this time next year you could have over $1300.00 in savings.

Chase's Plan To Help You Financially

I was going through January's O Magazine and found an advertisement for Chase Credit Card. Part of the advertisement is simple tips for every two months to help you stay ahead.

January and February - Plan, Save, and Manage:

• One way to cut expenses
• One way to save is to automatically deposit $25.00 into your savings account
• Auto-pay your credit card
• Set up a savings account for the upcoming holiday season

March - May - Spring towards fiscal fitness:

• What projects need to be tackled this year?
• Can you learn to do it yourself?
• Have a budget for each project.

June - August - Control Summer Spending:

• Enjoy quality time with family, but stay focused on money goals and be responsible
• Set your vacation budget now so you don't overspend

September - October - Get Back on Track

• Evaluate your summer spending
• Pay off your vacation bills
• Set goals for the coming months to prepare for the holidays
• Re-establish the savings plan

November - December - Gift Responsibly

• Set up a budget and stick with it.
• Set up next years Christmas Club savings account

I just thought it was interesting that credit cards are now offering tips on how to become debt free. I know that Discover has information on their web site and you can sign up for a debt reduction plan.

Have you used a credit card debt reduction plan? How did it work for you?

Name Brand v.s. Store Brand

I was watching the news this morning and watched a report about a woman going through the grocery store only buying name brand items. She spent on average $250.00 per week for groceries.

The news reporter challenged her to switch her name brand items for a store brand for a week and then report on any family reaction. She found that no one noticed or at least said anything about the changes. Her daughter did say that she liked the store brand fries much better than the name brand. The son said that he noticed that his cereal looked different, but didn't taste any different. The husband didn't notice any change in coffee or orange juice. No one in the family noticed any change in clothes after being washed in generic laundry soap. She found that she could save $150.00 a week on groceries by buying the store brand items.

I know that I did this experiment on my ex-husband. I use to make my own catchup and spaghetti sauce and put it in the name brand containers. I did this for months before he caught me putting sauce in the Ragu jar. Then he complained that he new it tasted different and didn't like it much. On the other hand my husband does notice how everything tastes. He does like some store brand items better than name brands, but there are still some items that he refuses to eat unless it is the name brand.

I know that I like the Shop-N-Save instant oat meal better than the name brand. And they have little tidbits of trivia on the pouches. I have learned a lot from those packages. My nephew only likes chicken nuggets from Aldi.

You will have to experiment on your own to see which items you can get away. You will be surprised on what you discover. In some cases the store brand and the name brand items are made in the same factory, they are just packaged differently.

Another article you may be interested in is coupons vs. store brands.

A Sign of the Times

I usually wake up to talk radio in the morning. It was sad to hear first thing in the morning that people are getting divorced but can't go their separate ways because they can't afford it. Then I heard a good joke.

It seems that people are getting divorced but with the economy in the dumps, they can't afford to pay for apartments or anything until their house is sold. They end up still living together and dividing up the bedrooms and some other rooms in the house.

Couples are now trying to work things out instead of filing for divorce because they can't afford to set up separate living spaces. This is just an interesting twist to a bad economic situation.

Ok, now the joke. A man left a letter for his wife stating that he was tired of trying to make things work by keeping well groomed and fixing her, her favorite meals and not getting a thank you or even a compliment. He fell in love with her sister and they have moved to California and are going to live a happy life together. He wanted a divorce.

She wrote him a letter back saying that she had noticed he had gotten a hair cut, but it was so bad that she didn't want to mention it. The meal he made was her sisters favorite meal, not hers. She had also won the lottery and is now a millionaire. Since he wrote her a letter, her lawyer said that he has no right to any of her money. Oh, and her sister Carla use to be called Carl. She hopes that they live a happy life.

The Good, The Bad, and The Ugly

Lets start off with the good news. Gas prices are lower again this week. I know that I bought gas yesterday morning at $1.57 per gallon. I haven't seen those prices in a long time. MSNBC reports that prices may still fall a little, but no much. The oils companies are cutting production and cutting back on refining oil. Most experts do agree that they don't expect prices to rise anytime soon. In most cases the prices will stabilize in the next few months and stay there for a while.

The bad and the ugly, crime is on the rise along with unemployment. This holiday season has seen a rise in stolen items in stores, cars, and even the high seas. Modern day pirates are on the go trying to get the loot off of cruise ships. I couldn't believe the reports in the last year or so with headlines about Pirates. I automatically pictured Johnny Depp with his gold tooth and all his pirate glory (the ugly). Be cautious when planning vacations next year. Maybe taking a trip in the car would be a safer and less expensive choice.

Oprah's Best Life Week

I have admitted that I have fallen off the financial wagon. Now I am going to confess that I have also fallen off the weight loss wagon and the spiritual wagon. I decided after my last cycle of fertility treatments that I was going to work on all areas of my life next year.

Well I have already started, but I plan to really kick it into high gear in the new year. It is great to find out that Oprah is doing the same thing. She is kicking off her Best Life Series on January 5th. Her fist two episodes will be with Bob Green and Dr. Oz. Of course that means working on weight control. Then Suzie Orman is going to be giving her advise later in the week.

She plans to have webinars and have workbooks to go with the lessons and each days show. You can sign up for the program on the link above. She also has more detail in her upcoming O Magazine.

I have to admit one other thing. The last couple of years I have not really been a big Oprah fan. Most of the subjects of her shows have not been anything I have been interested in. But I think things are about to change this next year.

After my divorce I went to see Oprah when she was in St. Louis doing her Best Life tour. I think that I will get out the manual that was in the goody bag and go through some of the information. In the next few remaining weeks of this year I plan to set some goals for next year and to do what I need to do to prepare to achieve those goals. I do know that my main goal is to find a balance in my life between work and home life and in mind, body, and spirit.

Have you already started thinking about those New Years resolutions? Are you thinking about what you want to achieve next year?

Women's Financial Literacy

While looking at what was new on feedthepig.org, I came across the 360 Degrees of Financial Literacy and this article: AICPA Launches National Women’s Financial Literacy Campaign.

The Wi$eup web site has recorded teleconferences that you can listen to at your convenience to learn about finances. There is a question and answer section and many other ways to learn in their Learning Center. I hope you take the time to check it out.

Recession Officially

I had to laugh when I saw the headlines on MSNBC "It's Official: U.S. is in Recession". Dahhhh!

I can't believe that it takes so long for the Government to realize that we are in a recession. I know that numbers have to be crunched and analyzed before people have the hard facts, but you don't have to be a scientist to realize that we are in a recession. The recession started this time last year.

Actually, I think we may be closer to a depression by now with people being laid off and companies closing the doors on a daily basis. Of course we won't know officially until next year.

What do you think? Are we still in a recession or have we crossed the line into the depression stage?

Trouble all Around

I am sorry that I have not been posting very many articles. I have had writers block again and I am feeling a little guilty since I have not been very frugal the last few weeks.

Not only have I been spending a lot more than I have all year, but I have not even looked for deals before spending. I know that I posted that I was getting back on the wagon, but I fell off again. Even my husband is spending even more than usual. Yes, I know that it is the Christmas season and you should expect to spend more while shopping for others, but I have all my shopping done long before Thanksgiving. I only have one more present to buy.

Not only have I gained weight over the weekend, but my wallet is much lighter. So this week I am back to losing weight and trying to keep my spending to a minimum. I have started a list for the grocery store and Walmart. Actually I think that I will get the items at Target since I have a gift card to use. My mission is to make my body lighter and my wallet heavier.

One thing I can say is that I have pretty much kept to using cash and not credit cards. At least I won't have a huge credit card bill coming in the mail.

Have you kept to your Christmas shopping budget?