How to Curb Your Overspending
Bitten by the buying bug? Try these strategies to curb your spending:
Keep track.
Write down everything you buy for at least two weeks: groceries, petrol, even a cup of coffee. Being aware of where your money goes will put you in control.
Quell the urge.
Postpone buying what you think you want for 48 hours. If you still want it, make your well-thought-out purchase.
Simplify.
Figure out a weekly budget that includes only basics like food and transport. Don't buy anything not in your budget for a month to discover what you can do without.
Quit cold turkey.
Put your credit cards away and pay for everything with cash. Even better, institute a buy-nothing campaign.
Thursday, August 27, 2009
Expert Advice That Pays Off
Expert Advice That Pays Off
When it comes to making and keeping cash, the experts will tell you that the best advice isn't new or trendy. So take it from those who've seen what works and what doesn't:
Donald Trump, real estate mogul and star of "The Apprentice":
On debt "Review your budget regularly a�� see where your blind spots are. I know people who don't count entertainment or alcohol or whatever a�� everything must be accounted for. Even a tiny leak can sink a ship. The same with finances."
Jonathan Clements, senior special writer, The Wall Street Journal:
On investing "People bank their financial future on crazy strategies. They are betting the housing market will keep soaring, investing hefty sums in hedge funds or equity-indexed annuities. But there is no easy way to get rich quick. If folks want to retire in comfort, they've got to stick with the basics: Save regularly, diversify broadly. Favour low-cost mutual funds. And show some patience."
Robert Kiyosaki, author of Rich Dad, Poor Dad:
On paying for university "Buy oil! As soon as the kids are born. Oil consumption is up, but supply is down. Get a mutual fund that sells oil stocks a�� Exxon, Mobil, but not Enron! A barrel of oil was $10 in 1998; now it's $60."
David Gardner, editor, The Motley Fool (fool.com) website:
On stocks "What do I invest in? An index fund a�� like those that track the Standard & Poor's 500 a�� because they are mostly managed by machines for a very low fee, not by humans trying to finance their vacations."
"When it comes to money, it's better to do nothing than to do something you don't understand."
Suze Orman, O Magazine
When it comes to making and keeping cash, the experts will tell you that the best advice isn't new or trendy. So take it from those who've seen what works and what doesn't:
Donald Trump, real estate mogul and star of "The Apprentice":
On debt "Review your budget regularly a�� see where your blind spots are. I know people who don't count entertainment or alcohol or whatever a�� everything must be accounted for. Even a tiny leak can sink a ship. The same with finances."
Jonathan Clements, senior special writer, The Wall Street Journal:
On investing "People bank their financial future on crazy strategies. They are betting the housing market will keep soaring, investing hefty sums in hedge funds or equity-indexed annuities. But there is no easy way to get rich quick. If folks want to retire in comfort, they've got to stick with the basics: Save regularly, diversify broadly. Favour low-cost mutual funds. And show some patience."
Robert Kiyosaki, author of Rich Dad, Poor Dad:
On paying for university "Buy oil! As soon as the kids are born. Oil consumption is up, but supply is down. Get a mutual fund that sells oil stocks a�� Exxon, Mobil, but not Enron! A barrel of oil was $10 in 1998; now it's $60."
David Gardner, editor, The Motley Fool (fool.com) website:
On stocks "What do I invest in? An index fund a�� like those that track the Standard & Poor's 500 a�� because they are mostly managed by machines for a very low fee, not by humans trying to finance their vacations."
"When it comes to money, it's better to do nothing than to do something you don't understand."
Suze Orman, O Magazine
Savvy Savers
Savvy Savers
It’s never too early to teach your child to make sound financial decisions. This will prepare him or her for financial success as an adult. And since kids learn from those around them, says Scott Mitchell, Senior Vice President of ipac financial planning Singapore, your money behaviour will make a big difference. Some tips from the company on raising a money-smart child:
Start a piggy bank.
Encourage your child to put aside a set amount of money each week. Teach them that savings should not merely be money that is left over from their allowance.
Discuss the value of things.
On shopping trips, get your child to help you decide which item gives the most value for money, for example, the best ice cream or chocolate bar. This will help them to start thinking about quality versus price.
Give your kids an allowance.
An allowance is an effective way of teaching your child how to prioritise and make better spending decisions. Give them a reasonable amount – not too much, not too little.
Set simple goals.
“Encourage saving for a toy. This is how children realise some things can’t be bought immediately. A chart certainly helps so the kids can see their goal getting closer each week,” says Scott.
Make it fun.
Go on educational family outings, for example, the local mint, or play Monopoly with your kids. Read them stories that encourage good values that are crucial to saving, like discipline. Let your kids pay for small items on shopping trips. In short, try to involve your kids in an interesting way.
It’s never too early to teach your child to make sound financial decisions. This will prepare him or her for financial success as an adult. And since kids learn from those around them, says Scott Mitchell, Senior Vice President of ipac financial planning Singapore, your money behaviour will make a big difference. Some tips from the company on raising a money-smart child:
Start a piggy bank.
Encourage your child to put aside a set amount of money each week. Teach them that savings should not merely be money that is left over from their allowance.
Discuss the value of things.
On shopping trips, get your child to help you decide which item gives the most value for money, for example, the best ice cream or chocolate bar. This will help them to start thinking about quality versus price.
Give your kids an allowance.
An allowance is an effective way of teaching your child how to prioritise and make better spending decisions. Give them a reasonable amount – not too much, not too little.
Set simple goals.
“Encourage saving for a toy. This is how children realise some things can’t be bought immediately. A chart certainly helps so the kids can see their goal getting closer each week,” says Scott.
Make it fun.
Go on educational family outings, for example, the local mint, or play Monopoly with your kids. Read them stories that encourage good values that are crucial to saving, like discipline. Let your kids pay for small items on shopping trips. In short, try to involve your kids in an interesting way.
Money Talks
Money Talks
Sound money management habits can form a strong foundation for how children deal with other matters when they grow up. “As you teach children about money, they also begin to learn other important lessons such as decision making, priorities, responsibility and goal setting,” says Brian Goh, senior vice-president of ipac financial planning (Singapore). Here are some money lessons in daily activities:
When at the ATM or when using your credit card
To appreciate the value of money, kids need to know where it comes from. Explain that hard-earned money has to first be deposited into the bank before it comes out of the ATM, and that purchases made on credit cards have to be paid for, in full, at the end of the month.
When grocery shopping
This is the best time to teach them how to make sound buying decisions. Have them help you look for items on your grocery list, and compare prices among different items. If you choose one brand of milk over another because it’s on sale, explain the decision.
When giving them an allowance
Paying out allowances on schedule (like the first of every month) teaches children the value of honouring agreements. Help them put away a portion into savings even before they start spending it, and assist them in setting savings goals, like buying a new toy.
When shopping
Spending indiscriminately sends out a dangerous signal that we can get whatever we want, when we want. Instead, teach your kids the difference between needs and wants. For instance, when checking out the latest Plasma TV, explain that while it might be nice to have a new TV, it’s not a necessity because the one at home is working just fine.
When planning a holiday
This is a great time to bring together concepts like budgeting, saving, price comparison, and balancing needs and wants. Money lessons are best absorbed when they are put to practical use, so do involve your kids in the decision-making processes of holiday planning – from picking a destination to scouting for deals.
Sound money management habits can form a strong foundation for how children deal with other matters when they grow up. “As you teach children about money, they also begin to learn other important lessons such as decision making, priorities, responsibility and goal setting,” says Brian Goh, senior vice-president of ipac financial planning (Singapore). Here are some money lessons in daily activities:
When at the ATM or when using your credit card
To appreciate the value of money, kids need to know where it comes from. Explain that hard-earned money has to first be deposited into the bank before it comes out of the ATM, and that purchases made on credit cards have to be paid for, in full, at the end of the month.
When grocery shopping
This is the best time to teach them how to make sound buying decisions. Have them help you look for items on your grocery list, and compare prices among different items. If you choose one brand of milk over another because it’s on sale, explain the decision.
When giving them an allowance
Paying out allowances on schedule (like the first of every month) teaches children the value of honouring agreements. Help them put away a portion into savings even before they start spending it, and assist them in setting savings goals, like buying a new toy.
When shopping
Spending indiscriminately sends out a dangerous signal that we can get whatever we want, when we want. Instead, teach your kids the difference between needs and wants. For instance, when checking out the latest Plasma TV, explain that while it might be nice to have a new TV, it’s not a necessity because the one at home is working just fine.
When planning a holiday
This is a great time to bring together concepts like budgeting, saving, price comparison, and balancing needs and wants. Money lessons are best absorbed when they are put to practical use, so do involve your kids in the decision-making processes of holiday planning – from picking a destination to scouting for deals.
How to be Good with Money
How to be Good with Money
Most of us probably resolve to be more sensible with money in these times. We're going to live frugally, save regularly and not go into the red. But, mysteriously, within a few months we seem to have run up a credit card debt and blown our savings on a holiday. The truth is that you don't need cast-iron discipline or the wisdom of Warren Buffett. Here are some easy steps to get you from profligate to prudent this year - while still enjoying life.
• Find out if your books balance. Get out all your bank statements and work out how much you've earned - include benefits and interest on savings - and how much you've spent over the past year.
• Bank online and check your balance twice a week. This will give you a clear idea of what's going in and coming out.
• Junk useless direct debits. Don't just go on paying for that life cover you don't need.
• Build up a rainy-day fund. Set up a monthly direct debit to put money aside in a high-interest account.
• Organise all your payments. Have your direct debits going out just after your salary is paid in. The rest is yours - to transfer into a savings account paying a better rate of interest than your current account. Transfer back as and when you need extra cash.
• Buy now, pay at once. If you can't afford something one month, wait until the next.
• Use your credit card sparingly. Pull out the plastic when you absolutely have to have that half-price dress in the sales. But always pay it off before it incurs any interest.
• Always shop around when contracts - like your internet and mobile phone service provider - come up for renewal. Don't forget to ring your existing provider to see if it can offer you something better.
• Buy treats with reward points schemes. Use all those points you've accumulated on your various cards to give yourself a treat. Spoil yourself - after all, you deserve it.
Most of us probably resolve to be more sensible with money in these times. We're going to live frugally, save regularly and not go into the red. But, mysteriously, within a few months we seem to have run up a credit card debt and blown our savings on a holiday. The truth is that you don't need cast-iron discipline or the wisdom of Warren Buffett. Here are some easy steps to get you from profligate to prudent this year - while still enjoying life.
• Find out if your books balance. Get out all your bank statements and work out how much you've earned - include benefits and interest on savings - and how much you've spent over the past year.
• Bank online and check your balance twice a week. This will give you a clear idea of what's going in and coming out.
• Junk useless direct debits. Don't just go on paying for that life cover you don't need.
• Build up a rainy-day fund. Set up a monthly direct debit to put money aside in a high-interest account.
• Organise all your payments. Have your direct debits going out just after your salary is paid in. The rest is yours - to transfer into a savings account paying a better rate of interest than your current account. Transfer back as and when you need extra cash.
• Buy now, pay at once. If you can't afford something one month, wait until the next.
• Use your credit card sparingly. Pull out the plastic when you absolutely have to have that half-price dress in the sales. But always pay it off before it incurs any interest.
• Always shop around when contracts - like your internet and mobile phone service provider - come up for renewal. Don't forget to ring your existing provider to see if it can offer you something better.
• Buy treats with reward points schemes. Use all those points you've accumulated on your various cards to give yourself a treat. Spoil yourself - after all, you deserve it.
The 12 Commandments of Wealth
The 12 Commandments of Wealth
1. Seek money for money's sake and ye shall not find.
2. Find your perfect pitch. (Know your strengths and weaknesses.)
3. Be your own boss.
4. Get addicted to ambition.
5. Wake up early. Be early.
6. Don't set goals – execute or get executed.
7. Fail so you can succeed.
8. Location doesn't matter. Success can take place anywhere.
9. Moor yourself to morals.
10. Say yes to sales.
11. Borrow from the best – and the worst.
12. Never retire.
Adapted from The Richest Man in Town by W. Randall Jones
1. Seek money for money's sake and ye shall not find.
2. Find your perfect pitch. (Know your strengths and weaknesses.)
3. Be your own boss.
4. Get addicted to ambition.
5. Wake up early. Be early.
6. Don't set goals – execute or get executed.
7. Fail so you can succeed.
8. Location doesn't matter. Success can take place anywhere.
9. Moor yourself to morals.
10. Say yes to sales.
11. Borrow from the best – and the worst.
12. Never retire.
Adapted from The Richest Man in Town by W. Randall Jones
Study Tips for Kids and Parents
With school back in session, here are tips from Oxford Learning to get your kids through school and dreaded exams.
Kids
1. Listen and hear. Pay attention in class. Jot notes on the main ideas. Don’t understand something? Make a note and ask someone to explain it to you.
2. Ace your homework. Use a planner to enter homework as soon as it’s assigned. Pick a comfortable place to do homework and study.
3. Study effectively. Divide material into units and assign each unit a day. Give yourself a three-day break before the test. Study in short bursts – 15 minutes at a time – then take a five-minute breather to exercise and refocus.
Use Oxford’s SQRCRC method to study:
Survey introductions, headings and summaries for main ideas.
Question: “What do I hope to learn by reading this?”
Read for details.
Cover the work.
Recite what you’ve just read.
Check how well you have done.
Parents
1. Help your child prepare a study schedule, and review it together every morning.
2. Create a special work environment that encourages best efforts and makes it easier for your child to get into study mode.
3. Get involved. Your interest shows them that school is important.
Kids
1. Listen and hear. Pay attention in class. Jot notes on the main ideas. Don’t understand something? Make a note and ask someone to explain it to you.
2. Ace your homework. Use a planner to enter homework as soon as it’s assigned. Pick a comfortable place to do homework and study.
3. Study effectively. Divide material into units and assign each unit a day. Give yourself a three-day break before the test. Study in short bursts – 15 minutes at a time – then take a five-minute breather to exercise and refocus.
Use Oxford’s SQRCRC method to study:
Survey introductions, headings and summaries for main ideas.
Question: “What do I hope to learn by reading this?”
Read for details.
Cover the work.
Recite what you’ve just read.
Check how well you have done.
Parents
1. Help your child prepare a study schedule, and review it together every morning.
2. Create a special work environment that encourages best efforts and makes it easier for your child to get into study mode.
3. Get involved. Your interest shows them that school is important.
Wednesday, August 26, 2009
Ways to Motivate Your Child
1. Create an environment at home that encourages a child's curiosity. Ensure that your attitude as a parent towards learning is one of excitement and reinforce this in your child.
2. The older the child, the more important the peer group is in the development of the child's motivation, so you should try to encourage your child's contact with peers who are motivated to do well at school and are intrinsically motivated to learn.
3. If possible, reward your child for having done a good job, for a competent performance, rather than for simply having completed a task moderately well.
4. Create exciting and interesting opportunities for your child to learn, to use his imagination and in which he can be creative and where he is able to see the results of his creativity and work.
5. The more your child is able to see the connection between his actions and an outcome, the more he will be in a position to take responsibility for his actions.
6. Encourage your child's involvement in as much decision-making as possible, at home and at school.
7. Avoid enrolling your child in a school characterised by an extremely authoritarian style of teaching and leadership. The effects of this type of school may seem to be effective because of the emphasis on extrinsic motivation, but they are often short-lived.
2. The older the child, the more important the peer group is in the development of the child's motivation, so you should try to encourage your child's contact with peers who are motivated to do well at school and are intrinsically motivated to learn.
3. If possible, reward your child for having done a good job, for a competent performance, rather than for simply having completed a task moderately well.
4. Create exciting and interesting opportunities for your child to learn, to use his imagination and in which he can be creative and where he is able to see the results of his creativity and work.
5. The more your child is able to see the connection between his actions and an outcome, the more he will be in a position to take responsibility for his actions.
6. Encourage your child's involvement in as much decision-making as possible, at home and at school.
7. Avoid enrolling your child in a school characterised by an extremely authoritarian style of teaching and leadership. The effects of this type of school may seem to be effective because of the emphasis on extrinsic motivation, but they are often short-lived.
Piggybank Basics
Eat your vegetables. Wash your hands. Always say "please" and "thank you." We are full of advice for our children, but when it comes to money, we often have little to say. As a result, our children may grow up with clean hands and good manners, but without the foggiest idea how to handle their finances.
Here are some basics that will help guide them their entire lives:
Show them the future.
If your 13-year-old were to sock away $1000, invest it at 8% (a reasonable return for a good long-term investment) and add $100 every month, by the time she's 65, she would have $980,983! Show your youngster how it works with an online calculator such as the one at www.dinkytown.com - click on "Savings Calculator."
Be careful of credit.
Credit cards can help you make necessary purchases and build a credit history, but they must be used responsibly, which means paying off your debt promptly. Explain to your children that when you buy something using a credit card, you can easily wind up paying two or three times what you would have paid if you used cash.
Teach patience.
Suppose your youngster wants a new bicycle that costs $150. Rather than shelling out the cash or passing over the Visa card, give him a regular allowance and explain that by putting aside, say, $15 each week, he will be able to buy it for himself in only ten weeks.
Provide incentive.
Reinforce the importance of saving. "For every dollar he or she agrees to save and invest rather than spend, you agree to add another dollar to the pot," says financial planner Cathy Pareto.
Explain your values.
Values and money are deeply intertwined, says psychotherapist Eileen Gallo, co-author of The Financially Intelligent Parent. When your child clamours to have you buy something, explain why you really don't want to make that purchase. "You might say, e??'d rather save that money for your education,'" advises Gallo. Every time you spend or don't spend money, you have an opportunity to share your values.
Here are some basics that will help guide them their entire lives:
Show them the future.
If your 13-year-old were to sock away $1000, invest it at 8% (a reasonable return for a good long-term investment) and add $100 every month, by the time she's 65, she would have $980,983! Show your youngster how it works with an online calculator such as the one at www.dinkytown.com - click on "Savings Calculator."
Be careful of credit.
Credit cards can help you make necessary purchases and build a credit history, but they must be used responsibly, which means paying off your debt promptly. Explain to your children that when you buy something using a credit card, you can easily wind up paying two or three times what you would have paid if you used cash.
Teach patience.
Suppose your youngster wants a new bicycle that costs $150. Rather than shelling out the cash or passing over the Visa card, give him a regular allowance and explain that by putting aside, say, $15 each week, he will be able to buy it for himself in only ten weeks.
Provide incentive.
Reinforce the importance of saving. "For every dollar he or she agrees to save and invest rather than spend, you agree to add another dollar to the pot," says financial planner Cathy Pareto.
Explain your values.
Values and money are deeply intertwined, says psychotherapist Eileen Gallo, co-author of The Financially Intelligent Parent. When your child clamours to have you buy something, explain why you really don't want to make that purchase. "You might say, e??'d rather save that money for your education,'" advises Gallo. Every time you spend or don't spend money, you have an opportunity to share your values.
Sunday, August 23, 2009
20 Lazy Ways to Save Money
While the media can't decide if the recession is nearing its end or not, we do know that there hasn't been a tremendous surge in wages, job creation or the stock market. Consequently, most of us are staying pretty conservative on our spending. Here are a few relatively simple ways to keep an eye on your pennies while you're waiting for that brighter economic future to arrive.
1. Schedule automatic payments. Have (at least) your fixed monthly bills paid automatically to avoid missing a payment and having to fork over extra money for late fees and/or interest. You can set up auto pay features through your bank's online bill paying service or by arranging it directly with the company or service provider.
2. Eat your groceries. Did you know that Americans regularly throw away nearly 15% of the food they buy at the grocery store each year? That can add up to hundreds or, depending on your supermarket budget, thousands of dollars each year. Save money by actually eating what you buy. Not sure how? Bypass the bookstore and borrow a cookbook from the library!
3. Bundle services. If you're paying different vendors for similar services you may be overpaying. Call your communications providers to see what price you'll be quoted if you switch and bundle your internet, phone and cable TV services.
4. Pay off credit card. If you're not paying off your credit card balance each month you're paying interest and, for most Americans, it's a pretty steep rate. Pay it off and you could save a tidy sum by eliminating your interest charges.
5. Mark your calendar. Whenever you rent something - library books, videos, etc. – mark it on your calendar and save money by avoiding those quickly mounting late fees. Many stores and libraries also now offer email reminders to help the constantly harried so sign up for the extra help!
6. File your taxes on time. Or if you need to file an extension at least pay what you owe on the due date. You'll avoid annoying notices from the IRS and, more importantly, save on penalties, fees and interest.
7. Roll it over. If you're switching jobs and you can't leave your 401(k) invested with your current company, roll your 401(k) into either your new employer's 401(k) or an IRA within the 60-day window instead of withdrawing the money. By doing so you'll keep the money invested - and earning interest - and avoid those nasty taxes as well as the additional 10% penalty.
8. Switch credit cards. If you're carrying a balance on a high interest rate credit card check out other card issuers to see if you could transfer your balance to one with a lower interest rate and fewer fees. Use sites like Creditcard.com or Bankrate.com to compare card rates, and pay careful attention to how long those terms last so you don't wind up paying a higher rate and erasing any potential savings.
9. Use your privileges. Are you an AAA member? Do you belong to the AARP? What about your local credit union? Check organizations you have memberships with to see if they offer buying privileges or discounts.
10. Rent instead of buy. You might be excited to expand your driveway but don't let your enthusiasm overtake good sense. Hold off on buying that jackhammer and think before you spend on big-ticket items or items that you'll use once or infrequently (like movies and books).
11. Buy instead of rent. Don't pay the exorbitantly high prices charged by rent-a-center type stores for items you'll use regularly and keep long-term like computers, furniture and appliances.
12. Ask. That's right, just ask. You can't be paying any more than you currently are, so why not ask if you can get the interest rate lowered on your credit cards or loans? Also, ask for a discount on services like your wireless phone, trash removal or pet care instead of switching to another vendor, and of course ask "is that the best you can do" on any big ticket purchases like cars, appliances and furniture.In a tight economy it might be worth the seller's while to cut the price instead of losing the sale, and you'll both benefit in the end!
13. Just say no. To the extended warranty that is. They hardly ever make financial sense. Weigh the repair or replacement cost (and if you would even need or want to repair or replace it down the road) against the cost of the warranty and graciously pass when offered.
14. Have the awkward conversation. Americans average more than $750 yearly on holiday gifts and that's probably much more than most would like to spend. If your gift-giving is costing you more than you can realistically afford there's a good chance it’s more than your relatives can afford (or would like to spend) as well. Take the plunge and broach the subject. Offer a more reasonable alternative (say, limit giving to children or put a dollar amount on gifts per person). More than likely your relatives will be grateful SOMEONE finally raised the subject and you’ll save money in the process.
15. Eat at home. If the idea of cooking for yourself seems like too much work at least opt for take-out instead of dining out - you'll save on the tip, the alcohol and most likely the cost for appetizers or dessert.
16. Balance your checkbook. It might take a few minutes but it's something you should be doing anyway and it can pay off huge dividends by helping you avoid bouncing a check and incurring steep overdraft fees (not to mention a little embarrassment)!
17. Stick with your bank. When withdrawing cash drive or walk the extra minute it takes to use your bank's ATM and avoid the fee that could come with another bank's machine. Better yet - switch to a bank that doesn't charge fees!
18. Use your TV. If you're paying for cable why not use all of it - and save some money in the process? Cancel the video membership and watch movies through cable movie packages you're already paying for or check out your free "on demand" shows. Drop the gym membership and work out at home to channels like FitTV, and bag the magazine subscriptions and watch the same shows (like Martha Stewart) on TV instead.
19. Quit those bad habits. Smoking, overeating and drinking are costly habits to maintain. Okay - this is the "lazy" way to save, not necessarily the easy way. But you can save boatloads of money in two ways by saying sayonara to your favorite vices: (1) You'll save money by cutting out on the regular spending it's costing you, and (2) you'll probably save on insurance premiums and long-term health costs. It's the ultimate win-win.
20. Forget the pet. Sure it sounds heartless but did you realize that welcoming home a little Fido can cost you an average of more than $1,500 a year - or $15,000 over 10 years? Feline fluffies are pricey too - just under $1,000 a year or approximately $9,000 for 10 years of care. Looking at the long-term picture, that's a new car or the down payment on a home! Keep walking right past that pet store and keep the money in your pocket instead.
The recession won't last forever, but in the meantime take advantage of these lazy ways to stay on track financially, and develop some pretty good money management habits for the future!
1. Schedule automatic payments. Have (at least) your fixed monthly bills paid automatically to avoid missing a payment and having to fork over extra money for late fees and/or interest. You can set up auto pay features through your bank's online bill paying service or by arranging it directly with the company or service provider.
2. Eat your groceries. Did you know that Americans regularly throw away nearly 15% of the food they buy at the grocery store each year? That can add up to hundreds or, depending on your supermarket budget, thousands of dollars each year. Save money by actually eating what you buy. Not sure how? Bypass the bookstore and borrow a cookbook from the library!
3. Bundle services. If you're paying different vendors for similar services you may be overpaying. Call your communications providers to see what price you'll be quoted if you switch and bundle your internet, phone and cable TV services.
4. Pay off credit card. If you're not paying off your credit card balance each month you're paying interest and, for most Americans, it's a pretty steep rate. Pay it off and you could save a tidy sum by eliminating your interest charges.
5. Mark your calendar. Whenever you rent something - library books, videos, etc. – mark it on your calendar and save money by avoiding those quickly mounting late fees. Many stores and libraries also now offer email reminders to help the constantly harried so sign up for the extra help!
6. File your taxes on time. Or if you need to file an extension at least pay what you owe on the due date. You'll avoid annoying notices from the IRS and, more importantly, save on penalties, fees and interest.
7. Roll it over. If you're switching jobs and you can't leave your 401(k) invested with your current company, roll your 401(k) into either your new employer's 401(k) or an IRA within the 60-day window instead of withdrawing the money. By doing so you'll keep the money invested - and earning interest - and avoid those nasty taxes as well as the additional 10% penalty.
8. Switch credit cards. If you're carrying a balance on a high interest rate credit card check out other card issuers to see if you could transfer your balance to one with a lower interest rate and fewer fees. Use sites like Creditcard.com or Bankrate.com to compare card rates, and pay careful attention to how long those terms last so you don't wind up paying a higher rate and erasing any potential savings.
9. Use your privileges. Are you an AAA member? Do you belong to the AARP? What about your local credit union? Check organizations you have memberships with to see if they offer buying privileges or discounts.
10. Rent instead of buy. You might be excited to expand your driveway but don't let your enthusiasm overtake good sense. Hold off on buying that jackhammer and think before you spend on big-ticket items or items that you'll use once or infrequently (like movies and books).
11. Buy instead of rent. Don't pay the exorbitantly high prices charged by rent-a-center type stores for items you'll use regularly and keep long-term like computers, furniture and appliances.
12. Ask. That's right, just ask. You can't be paying any more than you currently are, so why not ask if you can get the interest rate lowered on your credit cards or loans? Also, ask for a discount on services like your wireless phone, trash removal or pet care instead of switching to another vendor, and of course ask "is that the best you can do" on any big ticket purchases like cars, appliances and furniture.In a tight economy it might be worth the seller's while to cut the price instead of losing the sale, and you'll both benefit in the end!
13. Just say no. To the extended warranty that is. They hardly ever make financial sense. Weigh the repair or replacement cost (and if you would even need or want to repair or replace it down the road) against the cost of the warranty and graciously pass when offered.
14. Have the awkward conversation. Americans average more than $750 yearly on holiday gifts and that's probably much more than most would like to spend. If your gift-giving is costing you more than you can realistically afford there's a good chance it’s more than your relatives can afford (or would like to spend) as well. Take the plunge and broach the subject. Offer a more reasonable alternative (say, limit giving to children or put a dollar amount on gifts per person). More than likely your relatives will be grateful SOMEONE finally raised the subject and you’ll save money in the process.
15. Eat at home. If the idea of cooking for yourself seems like too much work at least opt for take-out instead of dining out - you'll save on the tip, the alcohol and most likely the cost for appetizers or dessert.
16. Balance your checkbook. It might take a few minutes but it's something you should be doing anyway and it can pay off huge dividends by helping you avoid bouncing a check and incurring steep overdraft fees (not to mention a little embarrassment)!
17. Stick with your bank. When withdrawing cash drive or walk the extra minute it takes to use your bank's ATM and avoid the fee that could come with another bank's machine. Better yet - switch to a bank that doesn't charge fees!
18. Use your TV. If you're paying for cable why not use all of it - and save some money in the process? Cancel the video membership and watch movies through cable movie packages you're already paying for or check out your free "on demand" shows. Drop the gym membership and work out at home to channels like FitTV, and bag the magazine subscriptions and watch the same shows (like Martha Stewart) on TV instead.
19. Quit those bad habits. Smoking, overeating and drinking are costly habits to maintain. Okay - this is the "lazy" way to save, not necessarily the easy way. But you can save boatloads of money in two ways by saying sayonara to your favorite vices: (1) You'll save money by cutting out on the regular spending it's costing you, and (2) you'll probably save on insurance premiums and long-term health costs. It's the ultimate win-win.
20. Forget the pet. Sure it sounds heartless but did you realize that welcoming home a little Fido can cost you an average of more than $1,500 a year - or $15,000 over 10 years? Feline fluffies are pricey too - just under $1,000 a year or approximately $9,000 for 10 years of care. Looking at the long-term picture, that's a new car or the down payment on a home! Keep walking right past that pet store and keep the money in your pocket instead.
The recession won't last forever, but in the meantime take advantage of these lazy ways to stay on track financially, and develop some pretty good money management habits for the future!
Saturday, August 15, 2009
Raising a Family
Years ago, as a new mother, I had moments of self-perceived superiority over my husband when it came to making decisions for, and about, our child.My resolve to follow “mother’s intuition” outweighed and trumped all outside forces. I even went so far as to shower pity upon the man misguided enough to assume his care could be comparable to mine, gleefully telling friends and family about his parenting mishaps.
Mishaps that to me were incomprehensible mistakes, such as one midnight hour transfer of our crying first-born to the recipient of the next wakeful shift. Taking hold of our discontented baby, I felt something unexpected inside his diaper and–like a red-nosed clown pulling the never-ending scarf from his mouth–I drew out a long, primary-colored cord, to which a child’s cassette-recorder microphone was attached.
My face twisted in anguish as I pictured my husband changing our baby’s diaper in the middle of the night and including any arbitrary items that just happened to be on the changing table at the time.“He’s lucky he didn’t get the whole recorder in there,” he said, yawning at my judgmental glare and padding into bed for a few hours of sleep before heading to work.From driving off with expensive baby gear on the roof of the car to letting our son stay up late without brushing his teeth, I was convinced that I knew what I was doing and that he, in fact, did not.
And then, one snowy day in upstate New York, I hit my husband’s car.With my car.While we were both driving…as I was following him to the repair shop to have his deer-jumped-out-from-nowhere bumper fixed.And even though our entire family was in my car at the time (no one was hurt), my husband didn’t label me incompetent or dim-witted as I may have done to him.
Instead, he gracefully acknowledged that we all make mistakes, that we all have lapses in judgment, that—though this particular car incident was a tough one to swallow–no one is immune to the slip ups, oversights and inaccuracies that make each of us “human”.
I slowly, but very surely, began to appreciate that all the focus I had spotlighted on my husband’s mistakes was my mind’s way of shadowing my own blunders.A cassette recorder microphone folded into a diaper was not nearly as dangerous as what I had just done. And driving off with a brand new Baby Bjorn on the roof of our car not nearly as expensive.
Many years have gone by now, and I continue to learn from my husband’s effortless forgiveness of my faults. Better still, has been the realization that his ideas and intents for our family most often have significantly better outcomes than what would have occurred had I been the only one in charge of making the plans and decisions.Every now and then, a glimpse of my “mother knows best” syndrome sparkles in my eye, and such was the case this summer when I impudently told my husband “no” to the tackle football league for which he wanted to sign up our oldest son.
Ultimately, I saw the errors of my own self-importance and relented.And, last weekend I watched my proud son stand in front of his team and receive a trophy with a confidence and self-respect he gained from accomplishing something he had previously assumed he couldn’t do—until his dad encouraged him to try.Certainly, there are limits when it comes to accepting our partners “contributions”–I took over diapering duty while it lasted…and he’s taken over driving…forever…But, we continue to grow as a result of our combined efforts and respect for each other’s roles and involvement in this life-long endeavor called “raising a family”.
Mishaps that to me were incomprehensible mistakes, such as one midnight hour transfer of our crying first-born to the recipient of the next wakeful shift. Taking hold of our discontented baby, I felt something unexpected inside his diaper and–like a red-nosed clown pulling the never-ending scarf from his mouth–I drew out a long, primary-colored cord, to which a child’s cassette-recorder microphone was attached.
My face twisted in anguish as I pictured my husband changing our baby’s diaper in the middle of the night and including any arbitrary items that just happened to be on the changing table at the time.“He’s lucky he didn’t get the whole recorder in there,” he said, yawning at my judgmental glare and padding into bed for a few hours of sleep before heading to work.From driving off with expensive baby gear on the roof of the car to letting our son stay up late without brushing his teeth, I was convinced that I knew what I was doing and that he, in fact, did not.
And then, one snowy day in upstate New York, I hit my husband’s car.With my car.While we were both driving…as I was following him to the repair shop to have his deer-jumped-out-from-nowhere bumper fixed.And even though our entire family was in my car at the time (no one was hurt), my husband didn’t label me incompetent or dim-witted as I may have done to him.
Instead, he gracefully acknowledged that we all make mistakes, that we all have lapses in judgment, that—though this particular car incident was a tough one to swallow–no one is immune to the slip ups, oversights and inaccuracies that make each of us “human”.
I slowly, but very surely, began to appreciate that all the focus I had spotlighted on my husband’s mistakes was my mind’s way of shadowing my own blunders.A cassette recorder microphone folded into a diaper was not nearly as dangerous as what I had just done. And driving off with a brand new Baby Bjorn on the roof of our car not nearly as expensive.
Many years have gone by now, and I continue to learn from my husband’s effortless forgiveness of my faults. Better still, has been the realization that his ideas and intents for our family most often have significantly better outcomes than what would have occurred had I been the only one in charge of making the plans and decisions.Every now and then, a glimpse of my “mother knows best” syndrome sparkles in my eye, and such was the case this summer when I impudently told my husband “no” to the tackle football league for which he wanted to sign up our oldest son.
Ultimately, I saw the errors of my own self-importance and relented.And, last weekend I watched my proud son stand in front of his team and receive a trophy with a confidence and self-respect he gained from accomplishing something he had previously assumed he couldn’t do—until his dad encouraged him to try.Certainly, there are limits when it comes to accepting our partners “contributions”–I took over diapering duty while it lasted…and he’s taken over driving…forever…But, we continue to grow as a result of our combined efforts and respect for each other’s roles and involvement in this life-long endeavor called “raising a family”.
Kids and Creativity: Tips for Sparking Your Child's Natural Creativity
Childhood and creativity seem to go hand in hand. Many times, the best thing we can do to encourage and spark their natural creativity is to get out of their way.
Here are some tips that have worked for me to help spark our children's natural sense of curiosity and creativity.
1. Have a variety of art supplies and make sure they are readily available. This doesn't have to be a big expense. Order some discount supplies online or shop around at flea markets and discount stores. Things you will want to include: cotton balls, beads, white glue, glue sticks, rubber cement, rhinestones, paper, markers, colored paper, crayons, watercolors, and oil pastels, along with a variety of papers. Also fill a box with things that you find around the house: tiny containers, old magazines, old holiday cards and so on.
2. When your children finish a piece of artwork, ask them to tell you about it. Engage your children in a conversation about the various creative choices they made that created the finished product. Try your hardest not to criticize these choices. Just really listen to what they have to say. You might also want to point out that it's often the things we think are mistakes in our art that lead to some of our best and most creative work.
3. Prominently display your child's artwork when it is complete. By doing so, you demonstrate that you truly value their art and creativity.
4. Talk about your own creative endeavors. It's important for your kids to see your own creative processes. Whether you paint, write, scrapbook, photograph or sew, allow them to see you (often) engaged in a creative pursuit. Make sure that you are honoring your own creative artwork by displaying your work prominently in your home, as well.
5. Work on art side by side with your child.
6. Visit art museums and galleries together and discuss what appeals to you the most. Discuss how the appreciation of art is very personal and unique to each individual.
7. Actively encourage your children in the creative pursuits that they seem drawn to. If they show interest in a musical instrument or a new genre of dance, for example, sign them up for a short workshop or class where they can learn more.
8. Show your kids that every day of life can be creative and filled with imagination. Show your kids, though your own actions, that they can bring creativity and fun to common, everyday tasks and, in so doing, make them more fun.
Here are some tips that have worked for me to help spark our children's natural sense of curiosity and creativity.
1. Have a variety of art supplies and make sure they are readily available. This doesn't have to be a big expense. Order some discount supplies online or shop around at flea markets and discount stores. Things you will want to include: cotton balls, beads, white glue, glue sticks, rubber cement, rhinestones, paper, markers, colored paper, crayons, watercolors, and oil pastels, along with a variety of papers. Also fill a box with things that you find around the house: tiny containers, old magazines, old holiday cards and so on.
2. When your children finish a piece of artwork, ask them to tell you about it. Engage your children in a conversation about the various creative choices they made that created the finished product. Try your hardest not to criticize these choices. Just really listen to what they have to say. You might also want to point out that it's often the things we think are mistakes in our art that lead to some of our best and most creative work.
3. Prominently display your child's artwork when it is complete. By doing so, you demonstrate that you truly value their art and creativity.
4. Talk about your own creative endeavors. It's important for your kids to see your own creative processes. Whether you paint, write, scrapbook, photograph or sew, allow them to see you (often) engaged in a creative pursuit. Make sure that you are honoring your own creative artwork by displaying your work prominently in your home, as well.
5. Work on art side by side with your child.
6. Visit art museums and galleries together and discuss what appeals to you the most. Discuss how the appreciation of art is very personal and unique to each individual.
7. Actively encourage your children in the creative pursuits that they seem drawn to. If they show interest in a musical instrument or a new genre of dance, for example, sign them up for a short workshop or class where they can learn more.
8. Show your kids that every day of life can be creative and filled with imagination. Show your kids, though your own actions, that they can bring creativity and fun to common, everyday tasks and, in so doing, make them more fun.
Learning Happiness: Everyday Activities to Increase Your Happiness
While cleaning my bookshelf the other day, I found a book, 14,000 things to be happy about. It looked brand new, but the date inside was from years ago. This book sat beside my collection of self-help books, which in contrast were dog-eared, highlighted and clearly used. Holding the happiness book, I wondered why I hadn't used it. Then I realized I always thought happiness was something fleeting and incapable of improving my life.
Recently, my beliefs have changes as a result of what I've learned. I've discovered that being happy, contented, and positive are skills, which can be learned with practice and determination. Therefore, I made the decision to start my own journey to learn happiness and have been happily rewarded. Here are a couple of things that I've learned on my journey as well activities that have helped teach me more about happiness:
Recognize the hidden happy moments in a day. When something wonderful happens to us, we usually know we're happy. It's the common, everyday moments of happiness that often elude us. One way to change this is by becoming deliberately aware of when we're feeling happy during the day. I found an activity that helped me and it might also help you. It's very simple: Get a notebook or a tape recorder and keep track of any happy moments you notice during your day. By writing them down or recording them, you become aware of these moments that might otherwise have passed by unnoticed. One such moment occurred for me when I was very late for an appointment and frustrated at getting every red light. As I sat fuming at the latest stop, I noticed a little boy in the school bus next me making silly faces at people. Watching him made me feel happy. I wrote this moment down in my notebook. It became one of many. Now, I look forward to finding happy moments in my day. I even challenge myself to see how many I can find. How many happy moments are you missing in your day? Try noticing them and see if you find your day is better for it.
Make a conscious shift from negative to positive.It's hard to feel happy when you're focused on the negative. Like a big pimple on our face, what we don't like can seem to be much more obvious than what we do like. Unfortunately, the more we focus on the negative, the more likely that's all we'll see. Changing this means we have to consciously bring more attention to the positive things that happen to us. For example, I used to talk about my day by reciting what went wrong in it. I'm changing this by learning how to shift my negative comments into positive ones. This can be done two ways. You can match the negative comment with an unrelated positive. Therefore, if I say I'm mad at myself because I forgot my dentist appointment today, a positive statement might be that I received a compliment about my latest newsletter. The other option is to make the negative comment into a related positive one. For example, I missed my doctor's appointment, but I called to apologize and made a new appointment. To be honest, this activity is challenging for me, but it has made me aware of the positive things I often missed. By regularly practicing shifting from the negative to the positive, I do feel happier about my day. Try this activity. See if you feel also feel happier when you pay attention to the positive.
Bring humor into your day.There's nothing like a good laugh or smile to trigger happiness. I like to start my day with a funny video clip. I have one saved on my computer about the silly things cats do. As I love cats, this clip always makes me laugh, even though I've seen it tons of times. By starting my day with a laugh, I've found I feel much happier. See if this works for you. Be creative. Use whatever makes you laugh, such as newspaper comics, a favorite joke, or a silly picture. Use humor again and again during the day, whenever you need a reminder to be happy.
Practice, practice and practice some more!Any new skill requires practice and learning happiness is no different. You have to work at it every day until it becomes part of your daily ritual. Therefore, try the activities I've suggested or create your own. Just keep practicing! The payoff is worth it. As you give more attention to feeling happy, you will also increase your overall well-being.As for me, I look for new ways to keep happiness a constant force in my life. Of course, there are still times I feel angry or sad, and that's okay. But now, I also pay attention to when I feel happy. I also practice happiness regularly. The book, 14,000 things to be happy about, I found on my bookshelf is now part of that practice. I'm confident it will soon look just as dog-eared, marked up and used as my old self-help books. It's another step on my journey to learning happiness
Tired of Worrying? Here are five Ways to Fight Your Worry Monster
I admit it. I am a worrier. I've decided that my worrying is due to an annoying little monster appropriately named, the Worry Monster. I have bought countless books and CDs, all of which promised to dispose of this devilish little thing. But it still pops up now and then.
Finally, I realized instead of trying to get rid of it, I needed to negotiate a compromise. I would agree to live with it, but it could NOT run my life! Learning to live with my Worry Monster was a conscious decision. I was tired of trying to prove it wrong.Worry monsters are very sneaky. There's always a kernel of truth to what they tell you.
Worry is about the possibility of something bad happening. Well, guess what? Something bad can happen and sometimes does! This is the power of Worry Monsters; the possibility that they just might be right.In dealing with my Worry Monster, I've found that the most effective strategy is to do things that keep me in control of it. If you also struggle with a persistent Worry Monster, here are some ideas for you to consider:
STOP TRYING TO KILL YOUR WORRY MONSTERI know it's so tempting. But like any monster, when you try to kill it, it will just fight back. Worry Monsters are not good for you, but you ended up with yours for a reason. It is important to figure out what it's trying to tell you.So, really listen for the messages behind your worry. Is it that you might fail, not live up to someone's expectations, or that you might not be able to cope with something? Whatever the message is, it's important to hear and acknowledge it. Once you do this, you are on your way to quieting your Worry Monster's annoying chatter.
TAKE CONTROL OF YOUR WORRY MONSTERWorry Monsters hate it when you take control. It's like the alpha dog stuff. You better be sure your Worry Monster knows YOU are the alpha dog. Otherwise, it will take control and proceed to tell you everything that could go wrong in your life.You can stop it, however, if you develop strategies for handling what might go wrong. Write these strategies down and keep them. When your Worry Monster starts grumbling at you, just wave the strategies in its face to remind it who's in control!
LAUGH AT YOUR WORRY MONSTERWorry Monsters hate it when they hear you laughing. It just saps all their power. If one is hanging around your house, find ways to make yourself laugh.In addition, they tend to take themselves VERY seriously. Therefore, the best thing to do is make fun of your Worry Monster. Laugh in its face. This tactic usually annoys it so much it will slink off and hide.
TALK WITH A FRIEND TO CALM YOUR WORRY MONSTERFriends can give you a different perspective. There is a caveat here: Be sure you pick people who have control over their own Worry Monsters. The last thing you need to hear is, "Oh, that's terrible! I'd be worried too!" Find someone who can listen while offering positive and constructive support.Remember, Worry Monsters thrive on your fears; they need to keep you anxious. Good friends ease your anxiety by getting you to look at your worries in a different way. In addition, if something bad does happens, they're there to help you through it.
EXERCISE AND CHASE AWAY YOUR WORRY MONSTERWorry Monsters prefer slouching on top of your shoulders and playing with your mind. They are not fond of physical activity. Therefore, if you take a long walk with the dog, run on your treadmill, or just do jumping jacks for ten minutes, your Worry Monster will find someplace else to hang out.Worry requires a lot of mental energy. When you exercise, your mind has to focus on the energy your body needs. Consequently, there is not much left over to feed your Worry Monster. This is a good thing. Most Worry Monsters could stand to lose a bit of weight!I've listed five ideas that can help you manage your Worry Monster. You can use them or create your own. Have fun thinking of the ways you can stop your Worry Monster from being such a pest. You may not eliminate it from your life, but it is possible to coexist with it!
Finally, I realized instead of trying to get rid of it, I needed to negotiate a compromise. I would agree to live with it, but it could NOT run my life! Learning to live with my Worry Monster was a conscious decision. I was tired of trying to prove it wrong.Worry monsters are very sneaky. There's always a kernel of truth to what they tell you.
Worry is about the possibility of something bad happening. Well, guess what? Something bad can happen and sometimes does! This is the power of Worry Monsters; the possibility that they just might be right.In dealing with my Worry Monster, I've found that the most effective strategy is to do things that keep me in control of it. If you also struggle with a persistent Worry Monster, here are some ideas for you to consider:
STOP TRYING TO KILL YOUR WORRY MONSTERI know it's so tempting. But like any monster, when you try to kill it, it will just fight back. Worry Monsters are not good for you, but you ended up with yours for a reason. It is important to figure out what it's trying to tell you.So, really listen for the messages behind your worry. Is it that you might fail, not live up to someone's expectations, or that you might not be able to cope with something? Whatever the message is, it's important to hear and acknowledge it. Once you do this, you are on your way to quieting your Worry Monster's annoying chatter.
TAKE CONTROL OF YOUR WORRY MONSTERWorry Monsters hate it when you take control. It's like the alpha dog stuff. You better be sure your Worry Monster knows YOU are the alpha dog. Otherwise, it will take control and proceed to tell you everything that could go wrong in your life.You can stop it, however, if you develop strategies for handling what might go wrong. Write these strategies down and keep them. When your Worry Monster starts grumbling at you, just wave the strategies in its face to remind it who's in control!
LAUGH AT YOUR WORRY MONSTERWorry Monsters hate it when they hear you laughing. It just saps all their power. If one is hanging around your house, find ways to make yourself laugh.In addition, they tend to take themselves VERY seriously. Therefore, the best thing to do is make fun of your Worry Monster. Laugh in its face. This tactic usually annoys it so much it will slink off and hide.
TALK WITH A FRIEND TO CALM YOUR WORRY MONSTERFriends can give you a different perspective. There is a caveat here: Be sure you pick people who have control over their own Worry Monsters. The last thing you need to hear is, "Oh, that's terrible! I'd be worried too!" Find someone who can listen while offering positive and constructive support.Remember, Worry Monsters thrive on your fears; they need to keep you anxious. Good friends ease your anxiety by getting you to look at your worries in a different way. In addition, if something bad does happens, they're there to help you through it.
EXERCISE AND CHASE AWAY YOUR WORRY MONSTERWorry Monsters prefer slouching on top of your shoulders and playing with your mind. They are not fond of physical activity. Therefore, if you take a long walk with the dog, run on your treadmill, or just do jumping jacks for ten minutes, your Worry Monster will find someplace else to hang out.Worry requires a lot of mental energy. When you exercise, your mind has to focus on the energy your body needs. Consequently, there is not much left over to feed your Worry Monster. This is a good thing. Most Worry Monsters could stand to lose a bit of weight!I've listed five ideas that can help you manage your Worry Monster. You can use them or create your own. Have fun thinking of the ways you can stop your Worry Monster from being such a pest. You may not eliminate it from your life, but it is possible to coexist with it!
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