Archives for December 2010

The credit card is the culprit behind many Americans’ huge debt today. This handy piece of plastic is so useful and convenient that we often manage all our shopping without money just by swiping our credit cards at different stores and outlets. It is only when the credit card issuer sends you your bill that you actually realize how much you have spent. If you have run up enormous debts because of your credit cards, then chances are, you are seriously considering cancelling all the cards you have. Instead of doing something this drastic, you can simply start using your cards wisely.

Keep Your Balance Low
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Saving money for the future does not necessarily have to entail frugal living and sacrificing every single enjoyable thing you do at present. After all, you save money so that you can continue to live a good life instead of allowing your financial limitations to dictate what you can or cannot do in future.

An effective future savings plan does not require that your spending is strictly limited to essentials or unavoidable expenses. In fact, this would not be a sustainable savings plan at all and as a result not an effective one either. What is required is to control the way you spend and to make this controlled spending a habit.

Know What Your Dollar Buys for You
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Raising children’s awareness on money management serves two important purposes – it helps them understand where money comes from and why it is important to save. Generally, the first purpose is served much sooner than the second as children may take longer to curb their need for instant gratification with all that money can buy. By introducing your kids to money management, you can be assured that they will grow into financially responsible adults

Giving monetary allowances to children

Give your kid a monthly allowance for selective purchases and not unnecessary ones like candy, video games or fashion accessories. Also remember that the monetary allowance given is not lunch money or for clothes, books and other school supplies – this is something that the parent must provide separately. Encourage your kids to save some money from their allowance, put it in a piggy bank or account.
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Lodging costs constitute the bulk of expenses for a traveler. Lodging at hotels can burn a large hole in your pocket. Increasingly, budget travelers are looking for unconventional accommodation arrangements that can save a significant amount of money. Here are some options that you can consider while choosing an accommodation during your travels.

Short-term, cheap sublets

Look for cheap apartments that owners rent out for a certain period of time. Sublets can be found through newspaper ads or websites such as Craigslist. Keep in mind though that New York recently passed a law banning tenants to rent out apartments for a duration of less than 30 days.
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Credit cards are synonymous with debt and your unaccounted spending can lead to debts that may not be good for your financial health. Here are 5 risks associated with credit cards that you should be aware of:

Using credit cards on unsecured sites

To prevent identity thefts, use your credit cards only on secured sites. Secured sites are encrypted and prevent hackers from stealing your credit card details. To see whether the site is encrypted, check if there is a lock icon on the address bar. An encrypted site will always show ‘https’ instead of the normal ‘http’ in unsecured sites.
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