The ELEMENTS of money

Save money this week ... really

It seems like everyone is talking about money lately. If one (or both) of your parents are among the 10.3 million people unemployed in the U.S. today, you're probably doing a lot more than talking about it ... you're probably trying to save money any way you can. And even if you're not affected today, it's not a bad idea to start trying to save a little money to plan for tomorrow.

So in light of the current financial crisis, over the next few posts I'm going to focus on different ways you can help your family save money. Today's tip: clip coupons.

We all get coupons. Your mailbox is probably flooded with coupons right now. Maybe you used to think of them as “junk mail.” From now on, think of coupons as money. When you throw them out without looking to see if you can use them, you’re throwing away money. Seriously! The trick with coupons is to use them only for things you’d normally buy. Saving $0.50 off of jar of crunchy peanut butter doesn't make any sense if you're allergic to peanuts. Also, compare prices and make sure that the coupon can really save you money.

And that's it for today's quick money tip. Stay tuned for another tip in a few days.

Catie

Living Large at the Library

There's no real way to avoid the affects of today's economy. If you drive a car, you're paying more for gas. If you like to eat, your favorite restaurant is probably charging more. If you're into fashion, there are higher prices at the mall. It doesn't seem like anyone can catch a break these days.

Hold the phone ... I may have found the last place for truly free stuff: the local library.

Community libraries are paid for by tax dollars (finally, that extra $0.50 I pay for a hamburger is paying off). There are tons of free services available at the library, and I plan on taking advantage of as much as possible. After all, I pay taxes, so it's time to put my tax dollars to work.

Not all libraries are the same, but for the most part, you can do stuff like ...

• Download free audio books — Load your favorite mp3 player with free audio books. I checked my library and yes, they carry the Twilight series!
• Magazines — Save some money and cancel your magazine subscriptions. Why? There's a good chance your library carries it.   
• Videos and DVDs — Why pay Blockbuster $5 to rent a movie when you can get it for free at your library?
• Borrow a book — Well, this one is kind of a no-brainer. Of course you can get books from the library. But now, many libraries let you search their catalog online and reserve a book. And the cost for this service: $0. Just make sure you return the book on time so you don't have to pay a late fee.
• Listen to music — Most libraries today let you check out CDs. Now I know most people have access to music online, but if your brother or sister is hogging the home computer, it might not be a bad idea to go to the library to check out a few CDs.
• Special events — Let me set the record straight: not all library events are boring. At my local library, they hold a Guitar Hero contest once a week. And they also host "Anime Afternoons" for all you Japanimation fans. Check your library's schedule to see what they have planned this summer.

That's about it for now. As you can see, there are still a few ways to have fun and enjoy the summer without spending a dime. And with prices continuing to go, your library might be the relief you need.

Catie

Playing Hide and Seek with Hidden Fees

There's probably no better way to save money than by getting rid of all the extra (hidden) fees that companies charge you. One statistic I recently heard was that Americans spend about $215 billion on hidden fees each year. For those of you math fans out there, that averages out to $750 PER PERSON. That's some serious green. I'd like to have my $750 back now please.

Like most things, the first step is to find out who's charging you a fee and see what you can do to reduce it or get rid of it. Here are some of the more typical fees:

Late Penalties - These types of fees can apply to nearly anything: if you're late returning a video, your cell phone payment is late, or if you don't make a credit card payment on time. Late credit card payments can be especially vicious — some companies charge up to $39 per late payment. Be aware of these types of payments BEFORE you apply, but more importantly, make your payments on time! Another thing about late payments is that some companies will raise your interest rate if you're late on a payment ... even if you were late with another company. Is that legal? You'll have to check out the contract you signed when you applied for the credit card to find out.

Cell Phone Charges - I'm sure everyone's seen their cell phone bill get hit with a fee. Cell phone companies are notorious for having crazy fees for nearly everything. The biggest culprit? Fees for using too many minutes (or text messaging). I was hit really hard once for sending too many text messages. I was charged an extra $50 one month, before I had to bump up my service, now all is well.

Before you sign a contract, understand what you can and can't do, and make sure you have a plan that covers the amount of minutes and text messages you'll need. If you do end up bumping up your plan after a bad month, ask them if they can credit your account for the fee they charged you. I did this and  was credit 50% of the fee.

Old Gift Cards - I love getting gift cards. It's the only way to get gifts that I won't have to return (sorry, dad). Unfortunately, some gift cards actually expire. And once they expire, you can't use them, or a monthly fee may be deducted from your available balance. Check for expiration dates as soon as you receive a gift card, and be sure to use it before it expires.

That's all I have for now. Good luck avoiding fees.

Catie

Can you hear me now?

So I'm considering switching phone companies when my contract expires in a few months. I won't tell you who I currently use, but let's just say that I'm less than happy with the service I've been receiving. And on top of everything else, I think I'm paying too much money. When I compare my cell phone bill to my friends, it always seems like mine is the highest.

I've been researching different companies and even looked at Consumer Reports for advice on choosing a carrier. Here's what I've learned in the past few days:

1. Yes, it's possible to own a cell phone and not starve because you have no money. I thought I was stuck paying crazy fees for the rest of my life. It turns out that if I get rid of my current service, I'll actually pay less each month. I was locked into a pretty high service. Now I know better.

2. Find out what carrier your family and friends use. Most likely, you can call them for free if you are all on the same carrier. For example, if my mom and my best friend are on Sprint, there is no charge to call them. But if mom is on AT&T, my friend is on Verizon and I'm on Sprint, the minutes will start adding up ... fast!

3. Get a text messaging package if possible. I started with the minimum text messages available (something ridiculous like 100 per month) and had to pay an arm and a leg for all the extra messages. I had to increase my available texts.

4. Research. Seriously, I was surprised at how different the major companies were. I always thought that they were all pretty much the same, but now I realize that each company has its pros and cons. For instance, some companies start their anytime minutes later than others. This can be a deal-breaker if you typically talk pretty early.

5. Read your contract before signing. Don't be in a hurry to sign anything just to get out the door and start using your iPhone (or any phone for that matter). Most contracts are for two years and that's a long time when you're talking about cell phones. If you're not sure, ask someone you trust to explain exactly what it is you're signing.

That's about it for now. Sorry I haven't posted in a while. School is kicking my butt and my free time has dwindled down to zero. I'll get better, I promise.

Catie

Savings bomb - I have photos!

OK, here are pictures of the savings bomb, scaring people everywhere into saving money.

And I'll say it one more time and then I promise I'll stop. Isn't opening a credit union account easier? At least you'll earn interest and you don't have to scrounge around the floor for your money.

Catie

The Savings Bomb

There's a new way to save money in Japan. It's called the "savings bomb" and it's basically a piggy bank that explodes and scatters coins if you don't save for a long time. Savings bombs are going on sale in Japan next week.

I promise I'm not making this up. This is a true story.

It's looks like a cartoon black bomb with a skull and crossbones logo, kinda like something Bugs Bunny would give Elmer Fudd. It lights up, makes a noise, shakes and scatters coins if you don't continually put money in it for a long time. According to the company:

             "Users must pick up and collect the scattered coins and reflect on their laziness."

Wow, that's harsh.

OK, here's a better idea: OPEN A CREDIT UNION SAVINGS ACCOUNT! Seriously, set up Direct Deposit so your paycheck goes directly into your account, and be sure to save a set amount each month. That's all it takes to save money. Once you have a certain amount saved up (like, say, $500 or $1,000), you can open a CD or some other type of higher-interest earning account.

Now I know it's tempting to spend every last penny you have, but having money saved up is important for your future, as well as for emergency expenses. So before you go out and buy a savings bomb, consider an easier way to save — your credit union.

Catie

Simple Financial Tips

Sometimes the best financial advice is simple and to the point. That’s what I learned from a guy named T. Chester. He has a website featuring financial advice for his son, and now he’s sharing it with others. Here are the main points:   

1. The most powerful force in the Universe is compound interest! By saving money and earning interest at an early age, you can make serious money over time.

For example, the $24 received by the Indians for Manhattan in 1626 would grow to $1.2 billion invested at 5% and to $25,454 TRILLION invested at 10%. Note that the Indians could therefore easily buy back Manhattan Island, including all its buildings, if they had invested the $24 at an interest rate between 5% and 10%. (If they had invested the $24 at 10%, they could buy everything in the entire world!)

2. Saving money is most important. Don't spend all that you earn. With very little pain, you can save a significant amount of money, enabling you to have a LOT more money later.

3. There is NO SUCH THING as a legitimate "Get Rich Quick" scheme. In investing, wealth is built slowly. (Sure, a few people win the lottery, but most people cannot depend on this method!)

So there you have it. Three simple pieces of advice that can go a long way in helping you build a better financial life.

Catie

Save Money Everyday

OK, so we just posted our first elements podcast. In the podcast, my brother Joey and I talk about things you can do to save money. We chose this topic because it's crazy how much money you can spend if you're not careful. Things like eating out, buying expensive clothes and paying late fees on videos add up really fast. So if your paycheck or allowance doesn't seem to last past the weekend, this podcast may be what you need.

We'll be doing the podcast monthly. By the way, the bass player in my band wrote all the music in the podcast (go Tim!). Check it out. Here's the link: the elements podcast

see ya!

Catie