SavvySugar

Savvy ATM: Use This Sticky Solution For Leftover Gift Cards

SavvySugar — Fri, 06 Nov 2009 04:00:01 -0800

Yes, unused gift cards are still a waste. It's hard to hit the magic number when spending and I'm often guilty of shoving them in a wallet or drawer to remember to use . . . until my memory fails me.

Then, when grabbing tea with my pal, GeekSugar, this morning, I noticed her handy trick. So you make the most of every last dollar and cent, wrap sticky notes around each with the remaining balance and take note of any purchases. In addition to being another more obvious use for your phone's calculator, it's a nice way to splurge on an afternoon yogurt without feeling like you've spent hard earned cash in the process.

5 Simple Steps For Creating a Spending Plan

SavvySugar — Tue, 20 Oct 2009 14:45:51 -0700

Straightforward budgets aren't always the best solution for people trying to get a handle on their money - the inflexible nature of budgeting can be a frustrating turn-off. Just because you're not one for budgets doesn't mean there isn't hope for following a plan that will get your finances on track. A spending plan is a better solution than a traditional budget for those who want a less rigid method for managing their money. Give your dollars some direction and take control by taking these five simple steps for creating a spending plan.

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Savvy Solution: Two Ways to Tackle Debt

SavvySugar — Mon, 11 Aug 2008 08:00:24 -0700

Like most things related to money, formulating a plan is the surest way to stick to your goals. Some debt slayers simply throw most of their money (after living expenses) at their debt to pay it off as quickly as possible, and hit the ground running without a clear path. Other debt-ridden dames focused on making a change need more focus to get motivated.

When multiple credit cards are involved, the question arises of where to begin. One school of personal finance thought recommends that the card with the smallest balance, regardless of the card's interest rate, be paid off first. The strategy assumes that once the first card's debt is paid down it creates a sense of momentum that charges you to move on to the next card, and so on. Discover a different method for tackling debt when you read more.

Many personal finance gurus back the strategy of paying off the card with the highest interest rate, no matter the balance, so that overall you'll end up throwing less money away on interest. While most money is dedicated to that card, minimum payments should be made on the other cards to avoid missing payments. Once the highest interest debt is paid off, move on to the card with the next highest rate.

So which way is better? It makes more sense financially to pay off the card with the highest interest rate first, but if paying off the card with the lowest balance is what it takes for you to get motivated than so be it. Choose a plan that works for you and stick with it!

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Could You Go Without Credit Cards For One Month?

SavvySugar — Mon, 28 Jul 2008 12:29:54 -0700

A recent study showed that people spend up to 20 percent less when they use cash instead of cards, so Good Morning America wanted to test the study's accuracy by introducing its own credit card challenge. The Farhat family of Arlington, TX, is going cold turkey with their addiction to plastic in response to the challenge - quite the undertaking for a family that relies on nine credit cards.

The Farhats manage to pay off their balances each month but admit they're spending more than they'd like. They were recruited by Gail Cunningham from the National Foundation for Credit Counseling to participate in the challenge, and she says: "It is by design that the lenders have distanced us from our hard-earned cash. It makes spending easier. It has a sense of unreality about it."

Rather than store their cards in a secret location until the month's end, Gail opted for more dramatic strategies like making the Farhats mow over one of their cards with a lawnmower. I'll be interested to see whether or not the challenge forces them to spend less money. Could you go a month without using any credit? Do you think it would help limit your spending?

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How to Manage Money When Income Is Irregular

SavvySugar — Thu, 19 Jun 2008 06:35:10 -0700

If you think managing your money with a regular income stream is challenging, try handling the task when you're not earning a steady salary. Those who are self-employed (think freelancers and business owners) must plan ahead even more than those of us with predictable salaries so they don't find themselves pressing the panic button when their work flow slows.

Since I've never been in this situation but am aware that several of you are, I turned to the smart folks at The Motley Fool for guidance. Find out their tips for getting your finances organized when you read more.

The Fool got input from a debt counseling firm that declared, "planning and budgeting are just as important as soliciting work" when income is sporadic. Here are some tips on how to do this.

Average out your expenditures over a three-month period. Start by tracking expenses for a few months to see where your money is going.
Free up your cash flow by regulating your expenses. See if your utility company offers a balanced billing option so your bills are spread out evenly over the year.
Build a safety net for lean months. How much you save depends on your situation, but put away what you can so that you don't have to rely on credit.
Though credit lines are tempting, avoid relying on them to make ends meet. Always make it a goal to be debt free.
Married to a regular wage earner? Try discussing using the regular income for essentials and the irregular income for savings and extras.
Earmark your savings. Choose designated accounts or investments for any windfall that comes your way so you don't blow it on something frivolous.

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Six Tips For Finding Extra Money to Start Your Emergency Fund

SavvySugar — Fri, 23 May 2008 04:19:55 -0700

Because everyone prioritizes his or her spending needs and wants differently, you'll never catch me telling you that you should be spending a certain amount of your income in one category or another. Budgets depend too much on how much money you bring in, your cost-of-living, and your debt situation for me to suggest how to allocate your funds. So, while it's up to you to decide how your money is best spent, I will tell you that having an emergency "rainy day" fund is a key component of feeling more financially secure and can save you from debt-tragedy if an emergency were to arise.

Here's how strongly I believe in building a savings cushion: even if you're not going into debt because of your lifestyle, I would argue that if you don't have any savings to fall back on it can be as detrimental as living beyond your means. I'm not talking about a down payment sized account, because it's true that any savings is better than none. Figure out how much you want to save and put a deadline on it - and use our savings calculator to do the math! The very best way to stick to a savings goal is to have the money transferred from your checking to savings account before you have the chance to spend it, and once you've figured out a way to cut your expenses so that you have extra cash you'll be on your way. Many people have expressed their exasperation at trying to find the money to contribute to savings, and for my tips on where to find extra money read more.

How many nights do you go out with friends? Cut it back by a day (unless your answer was one night) and find an alternative - maybe have friends over instead of going out.
Is your gym one of the more expensive ones in your city? There are certainly cheaper alternatives and you won't have to look too far.
Close to paying off a credit card? Put what used to be your monthly payment into your emergency fund.
Do you find that you're constantly throwing out perished items from your refrigerator or stale pantry items? That means you're not shopping smartly and are buying things that you're not sure you'll use. Write down the ingredients you'll need for the week's meals and buy only the items on your list, and if it's unrealistic that you'll grocery shop each week, plan to make certain meals during the week and pick up the ingredients the day of when you're out and about.
Do you get your nails done every week? Think about changing to every other week and save the difference.
If you live in a city and rely on cabs to transport you on evenings out that can come out to be $20 if you go out both nights. Consider sticking to places in walking distance for a while and saving your would-be cab fare instead.

You don't have to cut things out of your life that you enjoy, just scale back slightly and modify. Once you're in the habit of saving, you'll find more and more ways to boost your emergency fund. Keep in mind that the best way is to automate your savings - you're less likely to spend money if it's in your savings account and you have to make the conscious effort of transferring to your checking account if you want to spend it.

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Savvy Solution: If the Alps Are Out of the Question, Here's Where to Travel

SavvySugar — Wed, 07 May 2008 09:57:45 -0700

YumSugar is always in good spirits, but her mood is even better than usual because of some recent news about Iceland. She's been wishing to revisit the country since her first fantastic vacation there in 2005, but her only gripe about the trip has also been the only thing preventing her from going back. She said, "It was a billion times more expensive than anyplace I'd ever been," but now that Iceland's currency has plunged against the dollar she can plan another trip!

The global credit-crunch has made its way into this country with a population smaller than Pittsburgh, and has caused Iceland's krona to plunge against the dollar this year. This is in stark contrast to the euro's upward trend that has held American travelers back from European excursions, but has brought a flood of euro carrying travelers on stateside shopping tours.

Wondering what it would be like to vacation in Iceland? Here's what Yum had to say: "I went on a snow-dog excursion, drove snowmobiles on a glacier, and traveled around on tiny roads that made it feel like we were on the moon." She also generously shared some of her photos - I never considered including Iceland on my list of places to visit, but her pictures have definitely caused me to reconsider! Check them out when you

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How to Achieve Financial Security

SavvySugar — Mon, 05 May 2008 09:29:36 -0700

Sometimes we all could use a little kick in the behind to change our less than perfect habits, and over the weekend the Wall Street Journal published "Ways to Make Saving a Habit" to give us that nudge many of us need. We're responding to steadily rising prices by revising the way we spend, but are we actually spending less overall? The WSJ suggests twelve practices to help us make saving a way of life and eventually achieve financial security.

Spend less time feeling poor: Do things that offer a sense of well-being, like spending time with friends or exploring your neighborhood, rather than flipping through catalogs or going to the mall.
Retrain your brain: "When you start to feel that "I'm deserving so I'm buying" feeling, visualize a smaller credit-card bill or higher savings-account balance."
Look around you: "Are you happy with what your hard-earned dollars bought? If not, shift your spending to those things that bring greater long-term satisfaction, including retirement savings."
Choose your extravagances: Consider what you can and can not do without.
Assess weaknesses: "Identify what you want to change; then shoot for specific targets, such as a six-month hold on buying new tech gadgets."
Make trade-offs: "Substitute small, free pleasures for those that cost."

There are six more ways to make saving a habit so just read more

Set goals: "Think of the guilt-free trip you can take after saving the necessary cash. Good memories last longer, when not trammeled by large credit-card bills.
Resist your children: Offer options by explaining their choices here and now, but don't give in to their push for more consumer goods.
Enlist other people: "Hold a contest with friends to see who can save the most in a month, or agree with your spouse to talk before spending more than $100."
Post it: Put post-its in your wallet reminding yourself of your goals, whether it's a vacation or paying off debt.
Automate it: Transfer money from checking to savings and budget based on what's left in your checking account.
Rethink rewards: "We've been conditioned to think that spending the money on clothes, at a restaurant, is going to be the reward. But what is the ultimate reward that we want from working hard, in the end?"

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Five Steps to Follow When Your Wallet Is Stolen

SavvySugar — Thu, 03 Apr 2008 11:01:05 -0700

Fortunately, I've never lost my purse or wallet, but during instances where I momentarily thought that I lost my debit card or driver's license, panic surged through me. The automatic reaction when something happens that could compromise your everyday livelihood is fear and worry, but you need to overcome those sensations very quickly and focus to ensure nothing more happens. You want to be one of those people saying "it could be worse," not one who says, "they emptied my bank account and stole my identity." To see what steps you should take in the instance your purse or wallet is stolen just read more.

Call your bank and report your ATM card as stolen. Do this immediately, because your liability for money withdrawn by a thief increases within two days of the crime and you could end up with unlimited liability.
Call your credit card companies and inform them that your cards have been stolen. Have your online account in front of you while making the call so that you can easily relay your last transaction. You don't want to have to rely on memory when you're already jittery from stress.
Make an appointment with your DMV. It's not the best place to waste time, but toughing it out is better than getting in trouble for driving without a license.
Call the credit reporting agencies and place a temporary security alert on your file. This way, if the thief tries to open any new credit in your name the lenders will be flagged to verify the identity before accepting the application.
File a police report with your local precinct.

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Savvy ATM: What's a Recession, Anyway?

SavvySugar — Tue, 25 Mar 2008 07:51:18 -0700

All the financial news over the past several months has featured opinions on whether or not we're in a recession or if we're on our way there, and some of you have developed your own opinions about the state of the economy. Context tells us that a possible recession definitely doesn't suggest racking up higher credit card bills and blowing your savings on things you don't need, but what exactly is a recession? To find out if your recession assumptions fit the bill just read more

Most economists agree that it's difficult to tell if a recession is happening until after the fact, but there are specific indicators used to measure the state of the economy. So if there are elements that can be measured, how come nobody is clear about whether or not we're in a recession? The National Bureau of Economic Research (NBER) relies on lagging indicators that take six months to establish, and recessions generally last six to eighteen months.

The Motley Fool contemplated this issue and came up with these four indicators to keep an eye on when determining if we're in a recession.

Slower consumer spending: When the housing bubble popped, the value of many consumers' homes deflated as well. Feeling less wealthy makes people spend less.
Inverted yield curve: This indicates that investors believe rates will drop in the future, demonstrating investors' confidence that the Fed will continue to lower rates to stimulate a deteriorating economy.
Rising unemployment: The more people lose jobs the less people are spending money, and higher unemployment shows that businesses are suffering.
Inflationary pressure: When prices increase for goods like food, gas, and clothing at a faster pace than wages, it becomes more difficult for consumers to maintain their spending habits, causing business growth to slow.

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