Money Wise Blog

I previously attempted to answer this question – do you spend more with credit card accounts? 

Unfortunately, I realized my attempt to answer that question was flawed for a couple of reasons.  First, I have no idea how YOU use your card.  All I can address is the question – do I spend more with charge cards?  Second, I didn’t factor any of the following: 

Overseas currency exchange savings by using credit cards
Cash back
Car rental insurance savingsSince none of you forwarded me all your personal financial information I guess I will have to use myself as the guinea pig for this post.  I’m going to give you a behind the scenes look at the math I used to see if credit card accounts or money cost me more in 2009.

Calculate the True Cost of Credit Cards 

Step #1: Isolate all the ‘fixed’ charged from the ‘variable’ charges

I went back through my two Visas and I totaled how much I spent on both cards in 2009.  The total = $20,526 charged on cards.

However, I felt that to get a fair idea of how much extra using my Visa cost I needed to separate costs that are not possibly influenced by the how I pay for the product.  For example, I don’ pay more for gas by using credit.  I don’t pay more for medical bills when I pay for credit.  There are charges that I need to pay on a regular basis regardless of my method of payment.

As an example the fixed costs included things like airfare for our trip to North America (airfare + hotels), gasoline, doctors bills for our baby born in 2009, and health insurance payments.  Total charges = $17,452.

The rest of the charges are things that we might have bought on a “whim” like groceries, clothing, dining out, and other random purchases.  This total came to $3,074

Step #2: Add charge card cash back to the equation

Since I used my Visa for the $17,452 I was able to get 2% cash back.  $349 money back.

Let’s assume that Dave Ramsey is right and for my variable expenses I paid 12% more (I don’t think this is true but I’ll give Dave the benefit of the doubt.  By the way I do think people spend more when they buy with credit instead of cash just not 12% more).  Then I would have paid $368 charge card account extra spending penalty on that $3,074 that I spend.

Hmmmm.  Looks like plastic cost me an extra $19.00 in 2009.  Even if it did cost me $19.00 it would have been worth the convenience because there are definitely advantages to credit cards over cash.

But the math is not done here.

Step #3: Account for foreign currency exchange savings with charge card

When I use my plastic overseas I have a 0% foreign exchange fee charge card.  When I get money out of the ATM overseas I pay a 1% fee. 

In 2009 I spend $7,485 in a foreign currency.  With the ATM I would have paid $74.85 in fees, but with plastic I paid $0.

Now that actually means I saved $55.85 by using a credit card.

But, we’re not done yet.

Step #4: Factor in the auto rental insurance while renting a car

I rented a car for a week during 2009.  I declined the credit card account auto insurance and instead just used my charge card account insurance.  My full insurance would have been $8.95 per day.  Thus, I saved another $107.40.

Did using a charge card account in 2009 cost more cash or save more cash?

All told a charge card account saved me $163.25 in 2009 and it was a lot, much, a lot more convenient than money.  In addition having a charge card account helped boost my FICO score. 

Now you would obviously need to add up your own numbers to see how they work out, but using a credit card account might not be as expensive as you think.  In our case, we also have some spending guidelines for credit that helps us control our variable spending on plastic.  If you are in charge card account debt I promise you that credit cost more than it saves.

Credit cards are not all bad news, nor are they all good news.  In light of this observation next week were going to explore the topic of credit card fanaticism.

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Several weeks ago I asked the question Does spending cash really save money when compared to credit card accounts? My conclusion was that consumers spend less with cash.  The more I have reflected on that post, I feel it is necessary to follow up with a more complete look at advantages of buying with charge card accounts compared to cash.  Just because something is cheaper (as I believe using money is) does not necessarily mean it is a better choice.  I do a lot of things that I know are not the “cheapest” thing – like drink Dr. Pepper.  There are cheaper beverage choices, but occasionally I like a little fizz in my diet.  There are occasions when I pay for preferences and convenience.  Photo by paalia

Do credit card account advantages outweigh the extra expenses?

Credit Card Advantages:

1. You don’t have to worry about change. One of the things that drives me crazy about paying with cash is all the change in my pocket.  When I go to buy something I find myself digging around for change because I don’t want more, but then I feel like an old lady who is holding up everyone in the store.  I often just give a larger bill and fill my pockets with even more annoying change.

2. Book keeping is easier. With money if you lose your receipt, the record of your purchase has gone MIA (unless you have an incredible memory – which I don’t).  My wife and I were trying to sort out some of our bills earlier today and I caught myself thinking that if we had just bought it with a credit card we would instantaneously know how much we spent.

3. Purchasing items for business. Where I work we use a reimbursement policy.  I buy it now and they pay me later.  Having a credit card for those types of purchases avoids forwarding any money.  It gives time for a check to be cut before the payment is due.

4. Warranties. I’ll be honest here. I have never taken advantage of a charge card warranty.  However, if you are going to buy an item, you may as well get some type of coverage since there is no extra expense.

5. It can save you money. Some cards provide discounts when used at specified organizations.  Carrying a card allows you to take advantage of those offers.  You can also save a bunch of money when you rent a car with a credit card.  When you don’t need to buy the rental insurance coverage you can save a bunch of cash.

6. Feel sophisticated. Sometimes it’s just about the feeling.  We like to feel good.  I have never fully understood pedicures, but women say it just makes them ‘feel good’.  We are often willing to pay for a feeling.  When I don’t use a charge card account I feel like I am missing out on something – bonus points or promotions.  That may or may not be true, but sometimes I just feel like I’m missing something by paying money only.

7. Convenience. I love standing at the pump and swiping my card.  The gas station is one place where taking a journey indoors is hard for me.

8. Rewards. There is no denying that charge card accounts offer some pretty nice rewards – like this Starwood American Express.  Sure, they might only be a small fraction of what you spend, but you feel like you’ve done something smart when you are getting rewards.

9. Cash can be lost. What happens when you lose your wallet three times in a few months?  Some consumers have a habit of losing their wallet.  Those poor folks ought to have the safety of plastic, not a wad of money on their person.

10. Tipping is simplified. With cash it is hard to leave a % tip.  Often I find myself with several big bills and then I need to decide how a lot change to request.  However, with the credit card account you can leave an odd tip total and no one will think anything of it.

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savings account payday loan is one of the most common options to having access to instant cash to cope with a mid month crisis. At some point of time or the other, all of us face urgent cash requirements. Savings account payday advance is the safest and convenient way of taking loans. In this kind of cash advance the revenue is automatically accredited into person’s financial savings account after authorization. You do not need to in person visit the provider’s office in order to collect or pay funds.

Who Gains And How?

This payday loan is specifically useful for people who do not have good credit history. Such people do not get cash loans from plastic card providers. Also, it is quite difficult for them to get personal loans out of banks. The only option available with these people is either to borrow the money from family members and friends or opt for a savings account cash advance .

Lenders primarily authorize payday loan up to 50% of your salary. As the cash advance sum is low and may be quite easily repaid with your next month’s paycheck, it saves you from landing in any debt situation. Additionally the company automatically debits the money for the day of your paycheck so there is certainly small chance that you will certainly extend the cash loan period. Thus, you do not need to pay excessive fees and interest amount associated with rolling over of the cash advance.

Instant Authorization

Savings account payday advance is very useful because you get cash in a short time. The method of getting such cash advances is as well simple. You do not need going through problems of visiting the company’s office, arranging and sending documents and pledging your current assets against the payday loan. You will get the cash advance at any place and any time by applying for the cash loan on-line. All you will have to submit is verification of your job. The cash is deposited in your bank account on the identical day.

Since savings account cash advances are on the market quickly and easily, it is obvious that you would look ahead to it as a first choice whenever financial needs arise. Instead of making a routine in taking cash loans, it is advised that you manage your finances in an improved manner. Always do a little budgeting and save for unpredicted expenses. You also can seek the advice of finance experts to improve your credit history record.

Anywhere you go on-line same day payday loans providers all promise the same thing: an exact same day transport of cash. However, it’s essential to discover of all the factors that exist in actually managing to qualify for a same day transfer. Despite the fact that some lenders guarantee this service, several of these can caveat it all within their conditions and terms. For example, a provider might promise a 15 minute transmit of cash, however this will depend on how quickly it needs them to process and actually certify your application. It furthermore depends on whether they want further information to validate your application form and whether or not you have the facilities to produce this info with them in a comparatively fast fashion.

A same day cash loan is basically one that is transferred to you on exactly the same work day to which you sent in your application. Exactly when you obtain your payday advance however depends on whether the bank at which you hold an account can accept identical day transport payments from the payday advance company in question. Identical day transfers are a relatively fresh concept and a few smaller banks are so far unable to accept this sort of transfer.

Whenever applying for the same day cash loan it’s also crucial to find out of how much it is likely to cost you to transport the money to your bank account the same working day. Some companies charge an extra charge up to a value of $25 for this service and other providers may include the charge within the price of the initial payday advance- always read the terms and conditions prior to applying for a cash advance.

Any kind of request for extra information on behalf of the company may also pointlessly delay your application form – many lenders guarantee that they never require additional information to validate your application however this may vary between applications. It’s additionally important to notice that the time at which you are making your application can furthermore affect how quickly you actually qualify for payment – if you submit you application late on in the entire day then it is unlikely that may qualify for a same day transfer and thus you will have to await until the next work day before you receive your cash loan.

Credit Card allows customers to gain consumer credit while purchasing any product or service. Over the years, charge card accounts have become a much popular form of payment for consumer goods and services not only in the United States but all over the world. Cards can be broadly classified in to two – charge cards and charge cards. Credit cards, for example Visa and MasterCard, allows the customers to pay a minimum amount every month for any purchases with an interest charge on the unpaid balance. Charge cards, on the other hand, for example American Express allows the user to pay for all the purchases he had done at the end of the billing period.

Credit cards are considered as a great financial tool and nowadays there are a number of credit card account issuers offering a wide variety of terms for their cards. Hence before selecting a credit card account it is better to have some idea of charge card offers and how to select a low annual percentage rate credit card. Interest rate is considered as the most significant factors to be considered while selecting a charge card account. This comprehensive guide will help you with several tips on how to choose low annual percentage rate credit card account for you.

Annual Percentage Rate (APR) is the cost of credit, which is usually expressed as a yearly annual percentage rate. According to the size of your balance, the difference in annual percentage rate can surely make a big difference. Hence if you wish to carry a balance, that is not to pay the complete amount each month, then it is a better idea to use low annual percentage rate credit card accounts. Use a low APR charge card account to save thousands of dollars on your charge card interest expenses.

With the advent of Internet, now one can also buy a low interest rate charge card account through Internet. Buying a low interest rate charge card through internet is easy. There are many banks, which offer you facilities for online charge card account. For buying an online credit card, you have to find out a bank in your home country, which gives you such facility. There are some short formalities to be completed for getting your charge card approval. While filling up your application form, the only main thing you should have is your social security number and a valid passport number, which shows your identification to get tied up with a charge card account. VISA, Citi, American Express, and Blue Cash, are some of the major leaders offering online credit card.

Nowadays most of the leading banks and charge card account companies offer low interest rate credit card accounts. Credit card companies and banks are vying each other by offering its customers different schems such as lowest APR, 0% introductory offers, best rewards, and the minimum fees possible. That is, customers are getting an option to make a comparision of the numerous low interest rate credit card accounts of different companies. This helps the customers to choose a low interst rate charge card account which suits him the best. By using low annual percentage rate charge cards you are saving lots of cash.

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Few things strike more fear into the hearts of Americans than setting up a budget. We all know we need one, a few of us actually have one, and fewer still manage to live within it. Why is it so intimidating?

Maybe it seems like such an overwhelming task that you don’t even want to start thinking about it. Maybe you don’t actually know where to start. Maybe you think that it will require hours and hours to do.

Maybe you’re afraid of your cash; after all, it seems to pretty much rule your life-you may get up thinking about it and go to bed thinking about it. Whatever your reason, now is the time to start!

Step 1: Where to Start

There are two essential things that you need to know when preparing a budget: what comes in and what goes out. Now that’s an oversimplification, of course, but that’s all a budget is-income and expenses.

Start by assembling past paycheck stubs, dividend receipts, etc., to determine your income. A survey of the previous three months is usually good enough to establish this.

Next assemble two to three months worth of expenses. Get all of your bills together, your checkbook register, receipts, etc.

Step 2: Determine the Time Frame

Decide if you want to budget weekly, by the paycheck, monthly, quarterly, etc. How often you get paid may heavily influence this decision. Most Americans just budget by the month. Remember that you may have some expenses that happen quarterly, semi-annually, or even annually, things like insurance or car registration. You’ll need to plan accordingly (see Step 5).

Step 3: Choose a Tracking Method

Choose a method for tracking expenses (and income, if desired). Simple Joe offers the Expense Tracker PC software as an easy and user-friendly way to track expenses (see http://www.simplejoe.com/expensetracker/index.htm).

Quicken and MS Money are also good tools if you are pretty computer literate. You can also set up a spreadsheet program, if that’s something you enjoy doing.

You can even use good old pencil and paper. Do whatever will be easiest for you to maintain.

Step 4: Establish Categories

Select categories that fit your needs. Some people like just a few categories, some use a multitude of categories, others use subcategories. It really depends on how detail-oriented you want to be. General categories might include: auto, house, food, medical, insurance, utilities, etc. Specific categories (usually best as subcategories) could include: auto-insurance, fuel, maintenance; food-groceries, takeout, dining out; etc. You can always add or remove categories or subcategories later.

Step 5: Establish Spending Amounts

Review the income and expenses that you gathered. Put the expenses into the categories you have established so you can see where you’ve been spending. Total them and compare them to your income. How have you been doing? If you’re overspending, determine where you can cut.

Establish new budget amounts for the time period you have chosen based on past expenses. Remember also to budget for quarterly, semi-annual, or annual expenses. (Example: you pay your car insurance every 6 months; divide that payment by 6 and budget that amount every month; put it aside where it won’t be spent!)

Try to be flexible in your budgeting. Budgeting every last penny you earn may not be the best course because there are always unpredictable expenses that pop up. Be sure to budget some savings, even if all you can save is $5 a month. It’s great to get into the habit of paying yourself first.

Step 6: Track Your Income And Expenses

Whether it’s daily or weekly, or just every few days, you need sit down and enter your expenses into your tracking method. If you put it off too long it will become too overwhelming and you’ll give up.

Devoting just a few minutes a day is a lot better than three hours at the end of the month! Keeping close track of your expenses will also help you to stay in line with your budget. You’ll be more aware of your cash and more careful not to spend what you don’t have.

Remember to collect receipts for everything, especially things you buy with cash. This will make tracking a lot easier. If a receipt has purchases that fall into more than one category, divide them up accordingly.

Step 7: Revisit the Budget Often

Revisit your budget periodically. Review your expenses. See what’s working and what isn’t. Rework the numbers as necessary. If you are single, this should be pretty easy. However, if you are married, you may have one or two incomes in your household; both Americans should know where the cash is going, regardless of who is earning it.

Finally, remember that budgets are not set in stone. You are in control, not your money. Make it a goal to live within your budget. You can do it!

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Right now is as good as a time as any to cultivate the habit of saving money that you earn. One of the foremost money saving strategies at our disposal is the habit of paying yourself first. There are many sophisticated ways to get this accomplished, and there are also very simple ways to see results toward your goals: the piggy bank method.

Essentially, you create three separate, but equal accounts to make 3 separate, but equal deposits into each of them. You will eventually open these accounts at a bank, but you want to start at home, and you can use 3 jars, envelopes, or as the title of this cash saving method, you can use piggy banks. For ease of explaining, we will assume you are using 3 separate jars.

You will label the first “savings”, and by depositing into this account, you are following one of the oldest money saving strategies known by paying yourself first. The second jar is labeled “investing”, and this will keep you from just working for money, and will allow you to be in a position to have your cash work for you, one of the cash saving strategies and methods for wealth building. The 3rd jar will be labeled “Charity”, and this account is going to help you create the habit of going the extra mile, establishing character in the process. If you ever need a helping hand, you can believe it will be there just as you have been there for others.

Now remember, a rule of thumb for your savings account is to pay yourself first, and that starts with at least 10%, but more if you can afford it. For your 3 jars, it is an ideal situation to put aside 10% for each account, but you should start with what you can afford and work with what you have. Your goal is to create the habit of putting aside savings for the future, and as always, the key here is consistency. At the end of each month, you should take the deposits from each of the 3 jars, and deposit them into their respective bank account.

Your savings account should yield you a high rate of interest, and it should just be for depositing only, and not withdrawals. Your investment account should continue to accumulate until you have found an investment that meets your criteria and is lucrative for these funds to be allocated to. You want the cash from this account to work for you, and that means it should create more money. Your charitable account should be donated to a charity or fund that you feel strongly about, and this can be done at the end of each month, the end of the year, or how you see fit.

The money saving strategies of paying yourself first, having your money work for you, and going the extra mile with your charitable donations cultivate the habit of saving, and also the habit of creating and sticking to a budget, an underlying theme with the piggy bank savings method. By allocating funds from your income to these accounts, you are budgeting to do so, and that takes discipline, desire, commitment, and action. Once you have this strategy in place, applaud yourself for you are securing your financial future and taking control of your money, and your life.

This article is brought to you by www.JemCreditCards.com – Not Just Credit Cards, We Create Financial Stability. Compare the best charge card offers including American Express Cards, AmEx cards, and much more! Also, enjoy our free open to community blog where you are free to read articles and write some of your own for others to read!

Consumers are often surprised by the charges they see on their banking statements. In truth, most – if not all – of the fees can be avoided with a little savvy planning. It’s worth remembering that financial institutions are motivated to maintain long-term relationships with their customers. While the fees represent a source of revenue for them, their priority is helping you and your family with your financial needs. That includes providing checking and savings accounts, investments, and a variety of loans. In that light, here are 3 smart tips for reducing your banking fees.

#1 – Stay Within Your ATM Network

When you use your debit card at an ATM, stay within your bank’s network. Otherwise, you may be charged $1 or $2 for the transaction. Some financial institutions maintain large networks while others manage smaller ones. The size of the network is not as important as having an ATM near your home or work.

When you withdraw cash, take out enough to last the entire week. That way, you won’t be forced to make an unplanned $20 withdrawal at a machine outside your bank’s network.

#2 – Consider A Free Checking Account

These days, it’s easier than ever to get a free checking account. Many banks offer them because they realize a lot of free checking account customers will need loans, investments, and other financial services down the road. If you’re paying a monthly charge for maintaining your checking account, ask your bank whether they offer a free alternative. In most cases, you’ll discover they do.

#3 – Balance Your Checking Account

If you don’t know how much money is in your account, it’s simple to bounce checks. In the old days, you needed to keep meticulous records because statements were mailed monthly. Today, you can log into your bank’s website and balance everything online. It only takes a few minutes and doing so will help you avoid bouncing checks.

Remember, each time you write a check without having enough cash to cover it will carry a hefty charge (often, as much as $30). Keep track of your balance online and you won’t need to worry.

Saving Money On Banking Fees Is Easy

One of the reasons many banking customers are dinged with sporadic charges is because they fail to properly plan. For example, they might find themselves without cash while they’re out with their friends. A quick $20 withdrawal at an ATM outside their bank’s network might come with a $2 fee. Or, they might neglect to balance their cash and bounce a few checks as a result. Each NSF (non-sufficient funds) event may carry a $30 charge. Use the 3 tips above to enjoy your bank’s services while reducing the charges you pay.

This article is brought to you by www.JemCreditCards.com – Not Just Credit Cards, We Create Financial Stability. Compare the best charge card offers including Discover balance transfer cards, AmEx credit cards, and much more! Also, enjoy our free open to community blog where you are free to read articles and write some of your own for others to read!

Based on the classic book, The Richest Man in Babylon, fattening your wallet or simply saving is the first step to become wealthy and to financial freedom. Maybe your thinking how to fatten your wallet or how to save if you have nothing left? Is it hard to save and fatten your wallet? Yeah there are many instances that your wallet is really fat but only for a moment, maybe within two days after you received your salary or paycheck.

Some consumers find it hard to save money because of many expenses they have and the lack of discipline in saving small portions of their income. Before I have the same scenario just like many people working in a company. My family doesn’t have enough savings in case I loss my job. It is not our priority in those times because we have to pay for the mortgage of our house and lot. My thinking only changed about saving when I almost loss my job last year.

I am an OFW or Overseas Filipino Worker and as an OFW it is very difficult to lose your job specially when you are not prepared financially and mentally. At that time, we don’t have any savings because we’re paying for the mortgage of our house and lot. After that event, I searched ways on how to save as well as on how to earn cash aside from my current job. I started reading financial books that tackles saving, investing and other related topics on cash.

So it’s the short story of my financial journey why I want people to learn from my experience and be serious to their financial condition. We can help each other and be financially secured.

So going back, the question is how to save if you don’t have any cash left? I believe as long as you have job and earning a monthly salary, you have the capability to save if you have the DISCIPLINE. You need to be determined to save at least 10% of your salary per month.

If you find it hard to save cash because you don’t have the discipline, you can do it automatically. You only need to apply for an automatic savings account in your bank or for those banks with this service. It is automatic because each month when you get your salary, the auto-savings account will take a certain amount of cash you set from your salary account. In conclusion, you should start saving to achieve financial freedom.

This article is brought to you by www.JemCreditCards.com – Not just credit cards, we create financial stability! Compare the best charge card offers including Discover rewards credit cards, Chase rewards credit cards, and much, much more! Also, enjoy our articles about credit card accounts, debt help, investing, real estate, credit scores, increasing or building credit, and many other financial topics. If you have a question that we haven’t answered, feel free to ask a financial expert for free by filling out the form at the bottom of each article!

A funeral director should be someone who can offer support during times of great need by acting as an experienced source of guidance. As in any business, some funeral directors are way more up front than others. Here are three questions to be certain you get the finest service available, and at the best cost.

1. What services do you provide?
Since memorial homes are typically family enterprises, services offered change by corporation. Look for directors that offer consolation and act as listeners, crisis managers, and tribute planners. Possible tasks for your funeral director include :

- Completing any required forms
- Contacting doctors, florists, paperspapers, and any other sellers
- attaining licenses and death certificates
- Contacting family, chums, and solicitors
- Coordinating the important points of a funeral service or memorial services with clergy members
- Recommending local support groups and other sources of professional help

often , funeral directors’ most vital role is taking care of the body. Be sure to ask your director what options are available for internment. These choices may include :

- Earth funeral : one of the most well-liked kinds of interment. This needs a graveyard plot and customarily includes further costs like costs for opening and closing the grave.
- Aboveground funeral : this sort of entombment requires purchasing a crypt within a mausoleum designed specifically for that purpose.
- Cremation : Cremation can often involve placing an urn in a columbarium. An urn could also be buried in a graveyard. If cremation is selected, services like visitation, the viewing of the body, a memorial service, and funeral service may still be conducted.
- Anatomical Gifts : Organs and tissues could be donated without interfering with the preparing of the body for funeral services. A funeral director should be in a position to guide one thru this process.

2. What’s the cost?
Funeral directors must supply the consumer with service costs over the phonephone and be in a position to give the same in writing before any products are shown. All expenses associated with any services must be explained : no concealed costs are authorized. Before making any payments, see that all costs and services are in writing.

Directors should not be charge an additional fee for purchasing internment boxes some place else. In addition, they must go over all of the options for disposition : cremation, mummifying, direct funeral, etc .

A funeral director can help budgeting, preparing payment plans, and advocating financial help options. Local funeral and memorial organizations can help point one to a credible funeral home and can be even ready to barter discount rates for those in need.

3. Why should I hire you?
Like any entrepreneurs, funeral directors should be in a position to tell you what marks them out from their competitors. Also consider how much experience this person has acting as a director and what sort of support staff is in effect. Ask if the staff receives compulsory ongoing coaching to guarantee pro development.

No family should have to face the loss of a friend or family member ignorant and unready, and keeping the previous questions in mind will help you in finding a funeral director that can provide valuable knowledge and expertise to help and your family thru difficult times of loss. You should be able to find tons of San Antonio funeral homes, Dallas funeral homes and San Diego funeral homes.