budget

budget (Photo credit: Backdoor Survival)

No one wants to spend more money on anything than they have to, but without realizing it Americans all over are wasting money every day. Their intentions may be good, or they may not be thinking at all. Here are some tips to help you realize what does waste your money so you can stop wasting your money.

One thing that many people do not think about is that sticking with current providers for certain things can waste your money. Many people will stick with their current service providers for their cell phones, cable, or internet companies simply because it is easier. Others will stick with them because they think that if they do they will get discounts for loyalty. This is not always true. Search around look for the best deal that you can find. Why pay more than you have to.

Not unplugging electronics is a waste of money. This is something that many people simply do not think about. Many people think about turning them off, but not about unplugging them. It is true that turning them off will help keep you from wasting money, but unplugging them will help you keep from wasting even more. Even if the electronic device is off, if it is plugged in it is still using some electricity costing you money.

Paying ATM fees are a total waste of money. These can range anywhere from two dollars to three or four dollars. Think about how many times you get money out of an ATM. Know where all your bank’s locations are or where there are free ATMs. Do not pay for ATM fees unless you are desperate and do not have another choice. ATM fees add up to quite a bit over a year. Spend a month tracking how many times you use an ATM and think about if you paid a fee every time compared to getting your money for free every time.

Couponing is a great way to save money. However if you are couponing just for the sake of couponing then you are wasting money. If you are using a coupon on something you would not normally buy just because there is a coupon for it, then you are again wasting your money. Do not use coupons unless they are for something that you actually use and normally would buy. Otherwise the coupon is actually costing you money.

Saving money is something that almost everyone wants to do. If you are trying to save money do not forget to think about ways that you are wasting money. You have to watch out for anything that wastes your money because sometimes they are not very obvious, we simply let them slip past our money saving radar and then we waste money. Make sure you pay attention to anything and everything so you can stop wasting your money.

Not everyone can afford to buy a new car and often you can find a good deal on a used car from a private seller. Not all private sellers are honest though, some will try to scam you. Before you go to look for a used car from private sellers, know these various scams that they use to take your money and leave you with a hunk of junk.

If the seller wants money or a wire transfer but you have to wait to get the car, let this be a red flag that it could be, and most likely is, a scam. There may not even be a real car for sale. The supposed seller wants to take your money and then not contact you again. You should not have to give any money for a car until you are able to take the car from the seller.

If the deal seems too good to be true, then it probably is. If the car seems to be in great condition and the price seems to be super low, expect that something is wrong. Most private sellers who do this will not tell you that something is wrong with the car. The best thing you can do is take the car for a test drive to your mechanic and have them look it over and let you know what is wrong with it. If you do it that way, at least you know what you are getting into and are not buying a car thinking it works just fine just to have it break down a week later.

Ford Corsair V4 estate 1966. The stylish Corsa...

If the private seller is trying to offer you a third party protection plan on the used car that they are trying to sell you, know that it is a scam. The people who do this know how to make it seem like you are talking online with someone from the company when in reality it is just them reassuring you. Then when you purchase the plan, they get the money, but you do not get the protection plan.

If the seller suddenly changes gears in the middle of the negotiations take that as a red flag, it is a scam! If their story suddenly changes then you know that something is wrong. Take that as an opportunity to just get out of the situation before you get scammed and lose money.

If the seller tells you that the car that is for sale is not at their residence, then you should see a red flag. Typically when a vehicle is for sale it is either at the person’s home or somewhere it is easy to advertise that it is for sale. Depending on where they say it is, you should be able to determine whether or not it is a scam. If it is sitting out where it is easily seen then you do not need to worry as much. However, if the seller tries to tell you it is at their friend’s house, you might want to forget about that car all together.

When you are buying a car from a private seller you can get a better deal, if you are careful and know what you are doing. You always have to be careful of scams. There are plenty of people out there who would not think twice about scamming you and you should not think twice about walking away from a car if you feel a though you could be in a situation where you could be scammed. If you know the most common ways that people try to scam others then you will have a better defense against getting scammed, which is always a good thing.

01.06.2014

There are many myths out there when it comes to credit scores. You have most likely heard at least some of them. No one really knows where they came from, but we do know they are myths. If you are unsure of what is a credit score myth and what is a credit score fact you should continue reading so you know fact from fiction.

One credit score myth is that you should never close a credit account. This is a myth because it is not always the case. There are times when this is what you want to do. Typically if you want to get a loan in the near future you do not want to close a credit account. However, if you have plenty of credit accounts, and you see no need for a loan in your future there is nothing wrong with closing one.

Credit Rating

Credit Rating (Photo credit: Match Financial)

Having tons of credit cards means you will not be able to get a loan is one myth that people think is true. At one point in time it was somewhat true. The fear was that you would go out and run up huge bills on those credit cards only to default and wind up in over your head. What has been noticed however, is that those who have been able to handle many credit cards for some time without issue will not just go out overnight and max out all of their cards. They have shown their responsibility by not keeping them maxed out, thus they are more trustworthy than once thought.

Another myth is that you do not need to worry about your credit score. This one is absolutely crazy! Of course you need to worry about your credit score! You credit score will determine what your loan rates will be or even if you can get a loan. Your credit score is very important and you need to pay attention to it. Remember the higher your credit score the better off you will be.

One rather strange myth is that you have to be in debt to have a good credit score. This is so not true. The thought behind this is that if you have a debt and are making your payments on time every month your credit score will go up. While that is true, you do not have to be in debt to have a good credit score. Say you have a credit card and make a purchase with it and then immediately pay it off. You do not have debt but it did help you build up your credit score.

Do not believe all that you hear when it comes to your credit. If you are unsure of something do your own research. You have the ability to find out for yourself if something is a myth or if it is a fact. The more you learn the better you will be able to separate credit score fact from fiction.

Emergency

Emergency (Photo credit: Tax Credits)

Not everyone thinks about what would happen financially if an emergency were to happen. Often most people end up in a financial emergency when another emergency happens. They do not have the money to take care of whatever they are going through. Ask yourself, are you prepared?

If you do not want to end up in a financial emergency when you are in another emergency there are things that you can do. You probably already have a retirement savings account and a general savings account, but you should open another savings account. This account will be your emergency fund.

You do not have to stress yourself out trying to make sure that you build your emergency fund as fast as you can. You really only need to add what you can to your emergency fund. You still have a budget to stick to, but this should be added to it.

Everyone will have their own amount that they will need as a minimum in their emergency fund. It will depend of various things such as if you are single or married, if you have children and if so how many, how many bills you have, and so on. You need to sit down and figure it all out. Generally experts say take that amount and have a minimum of six to 12 months worth of income that will cover that amount in your emergency fund. Of course it does not hurt anything to have more than you need in this account.

Always remember that this account is for emergencies only. Do not use it for any other reason. Do not rationalize something as an emergency in order to use this money. This money is to be used for real emergencies only, this is important. If you do ever take money out of this account, even if it is because of an emergency, you should replace it as fast as you can.

It is a good idea to sit down with a pen and paper and make a list of what you consider a real emergency. If you have a list of what you will allow yourself to use your emergency fund for, you will be less likely to try and use that money for other things. This is not money to use because you want to go out and are short on cash, or because you forgot to budget for a haircut. This is for true emergencies only so that is what should be on your list.

Having an emergency fund will help you make it through any emergency, without having to go through a financial emergency on top of it. This is something not many people have thought about, but is really important to have. It is one of those things where it is better to have it and not need it than to need it and not have it, so go set up an emergency fund today.