To build up savings, you must learn first to save money before spending it.  We all have the great ability to spend money, but you need self-discipline to save that money instead of spending it. If your bank can't link your checking and savings accounts, or if you find it hard to control your spending when access to your savings is easy, ask your employer about direct deposit. You can have money taken from your paycheck and placed in a savings account automatically.

Combine your savings and checking accounts with an ATM card. Set up three savings accounts, each for a different use or goal. For example, one may be for emergency cash, a second for expenses and unexpected bills, and a third for investments. Carry your debit cards only when you really need them to make transactions, and withdraw only what you need for one week; this should curb your temptation to withdraw cash for impulse purchases.

As for paychecks and paydays, put only the money you need to live on for one month (or two weeks, if you get paid every two weeks) into your checking account for expenses and bills. Also, if you can, put money equivalent to one month's expenses into your expenses account for unexpected bills. The idea is to build at least a small stash so you're less likely to use your credit card if your car needs a new tire.

Begin building an emergency cushion by depositing a portion of each paycheck into your emergency savings account. If your goal is to have three months' living expenses, you could reach your goal within 30 months by saving 10% of each month's pay — or in 15 months by saving 20%.

Place the remaining money into your investments account, including found money such as birthday and holiday checks, bonuses, or money made from a garage sale. If you get a raise, put the difference into this account on a regular basis.

Nearly two-thirds of college students carry some type of debt. Late payments are also rising, as college students are suffering more than any other American. Nearly half of college students struggling with debt have stopped paying their debt(s), forcing lenders to "charge off" the debt and sell it to a collection agency.  If not that, then they are having their cars repossessed or they are seeking bankruptcy protection.

Over half of college students feel that they face tougher financial pressures than young people did in previous generations. About 30% of students frequently worry about their debt.  Although the percentage of people ages 22 to 29 with debt has declined, their total debt is up 10% from five years ago, to an average $16,120.  Every type of debt, from credit cards to college to personal loans, has risen.

Student-loan balances rose 16% to an average of $14,379; revolving debt, including credit cards, surged 24% to $5,781; and total installment debt, including student and personal loans, rose 4% to $17,208. The fastest-growing group of financially-troubled college students owes $20,000 or more in student-loan debt.

Debt has forced some young people to change their career plans. Of those surveyed, 22% say they've taken a job they otherwise wouldn't have because they needed more money to pay off student-loan debt. Three out of ten students have delayed or discontinued further education because they have too much debt already.  Of these college students, 26% have put off buying a home for the same reason, just as a smaller percentage say they've put off marrying (11%) or having children (14%).

The last resort for people with an excessive debt load is bankruptcy. While many cases can be resolved with credit counseling or debt negotiation, some amounts are simply unmanagable. In these cases, personal bankruptcy may be a final resort. There are two primary types of personal bankruptcy: Chapter 13 and Chapter 7 - each filed in a federal bankruptcy court. As of April 2006, the filing fees run about $274 for Chapter 13 and $299 for Chapter 7 while attorney fees are additional and can vary. The government would rather see consumers seeking debt relief with bankruptcy under Chapter 13 rather than Chapter 7.

Chapter 13

Chapter 13 allows people with a steady income to keep property that they might otherwise lose through the bankruptcy process, such as a mortgaged house or car. In Chapter 13, the court approves a repayment plan that allows you to use your future income to pay off your debts during a period of three to five years, rather than surrender any property. After you have made all the payments under the plan, you receive a discharge of your debts.

Chapter 7

Chapter 7 is known as straight bankruptcy, and involves liquidation of all assets that are not exempt. Exempt property may include automobiles, work-related tools, and basic household furnishings. Some of your property may be sold by a court-appointed official, a trustee, or turned over to your creditors. There is an eight year waiting period after receiving a discharge in Chapter 7 before you can file again under that chapter. The Chapter 13 waiting period is much shorter and can be as little as two years between filings.

Both types of bankruptcy may rid you of unsecured debts and stop foreclosures, repossessions, garnishments and utility shut-offs, and debt collection activities. Both also provide exemptions that allow people to keep certain assets, although exemption amounts vary by state. Personal bankruptcy, however, does not remove child support, alimony, fines, taxes, and some student loan obligations.

The Senate Banking Committee held a meeting last week with representatives with some of the top credit card companies in the United States, including JP Morgan Chase, Capitol One and Barclays. Most of the meeting centered around credit card industry trade practices and making credit card terms easier for consumers to understand. Consumer advocates attending also brought up a host of other concerns as credit card delinquency fees continue to rise from just $1.7 billion in 1996 to a staggering $17.1 billion last year. One of the biggest concerns dealt with the ability of credit card companies to change the terms of their agreements with just 15 days notice - this is despite most credit cards having expiration dates several years in the future. What else can be done to improve the situation? Well, here are some other suggestions brought up at the meeting:

1. Universal Default Pricing - This is a policy that enables credit card companies to increase your rates (even if you were a model customer beforehand) if you're late on bills on other accounts, or if your credit score falls.
2. Double Cycle Billing - This is a policy that enables credit card companies to charge interest on an amount that you have already paid back. For example, if you pay $900 of your $1000 credit card bill, some credit card companies will charge you interest based on the full thousand until the remaining $100 is paid off. While bank loans operate in a similar way, many feel that credit card companies should discontinue this practice.
   
3. Zero Tolerance Late Fees - Often times even if you pay off your bills an hour late, you're hit with a $20 to $50 fine and associated rate increases as well. Many argue that these people who make accidental late payments shouldn't be grouped with those who are months delinquent on their bills.
   

Sen. Dodd said that the hearing would be the first of several to examine credit card practices. While it's not clear whether any legislation would result from the effort, many hope that lawmakers and the credit card industry might try to come to an agreement on best practices. But Dodd did issue a warning to credit card companies during the hearing: "If you currently engage in any business practice that you would be ashamed to discuss before this Committee, I would strongly encourage you to cease and desist that practice. Irrespective of the current legality of such practices, you should take a long, hard look at how you treat your customers."

The national debt limit has been raised four times during the last five years. The increased debt ceiling is now at an incredible $9 trillion, with the current national debt just under $8.7 trillion.

Like many cash-strapped Americans who have terrible credit and who max out their credit cards, the federal government has hit its limit for borrowing funds to keep operating. If the limit isn't [continuously] raised, the government will eventually run out of borrowing authority, risking a national economic shutdown in a worst case scenario.

But is this problem being addressed? Well, when President George W. Bush initially took office, the national debt was at $5.6 trillion. Since then, big budget surpluses have collapsed into huge deficits, and the debt has shot up nearly fifty percent. While this may not be entirely due to his actions, there appears to be no end in sight to government spending. While the government encourages Americans to save, they continue to print and spend more and more money.

One of the critical question that you must ask yourself when you retire is whether to take a lump sum or annuity plan for your pension. Annuities are financial instruments that make payments to you on a regular basis for the rest of your life, while a lump sum is simply one full payment made now. Whether its the lottery or retirement income, most people choose the lump sum because they believe it offers them the best deal, but this may not be the case!

The biggest factor to take into consideration is your lifespan. Annuities die along with you and your spouse and leave nothing for your heirs, while lump sum payments rolled into an IRA or other retirement vehicle lets your heirs keep the money after you die. Consequently, the general rule is: the longer you live the more valuable an annuity is and visa-versa. Statistics show that a 65-year-old man has a roughly 50-50 chance of living to age 85 and a 25 percent chance of living to 91, while a 65-year-old woman has a 50 percent chance of living to age 88 and a 25% chance of making it to 93.

When evaluating these options, it is important to calculate your retirement needs after social security income and any other income. If you rely on your pension for the majority of your retirement income, then a lump sum may be the best option, as it gives you much needed money upfront. However, if this just accounts for a small portion of your income, the chances are it will pay off to take the annuity over the lump sum as it will typically amount to more in the long run. Finally, another common alternative is to take the lump sum payment and purchase a separate annuity with a higher yield, which gives you the best of both worlds. Combined, these are all very important factors to consider when making decision on your pension payout.

If you are expecting a sizeable income tax refund, you'd think you'd want to file your return as soon as possible to collect the money that the government withheld from you all year, right? On-line filing has made it even quicker and easier for you to receive your refund.

However, avoid being rushed to file too early for the tax season. Due to a lot of changes in the tax laws, banks, brokers, and mutual funds sometimes cannot provide accurate information to you by their end of January deadline. A number of financial institutions will likely be forced to send you revised 1099 forms in February, March, or even as late as April.

It doesn't hurt if you decide to delay filing until March because the initial 1099 form you receive may not be accurate. If you file too early and then get a revised 1099, you may need to file an amended tax return to claim an additional refund or to pay tax that you subsequently owe. In short, take your time filing your taxes this season - it'll only help you in the end.

According to a survey conducted by the U.S. Department of Justice, identity theft affects about three percent of all households in the U.S., totaling an estimated 3.6 million families in the U.S each year. To put that in terms of money, identity theft costs an estimated $6.4 billion per year.

Identity theft occurs when someone uses your personal information such as your name, Social Security number, credit card number or other identifying information, without your permission to commit fraud or other crimes. Consumers whose identities have been stolen can spend months and years clearing up their good name and credit, not to mention the expenses that may be involved.

To protect yourself from identity theft, you should protect your social security number, your credit/debit cards, and your financial documents:

Social Security Number: Remove your SS number from your driver’s license and insurance cards, just as you should not put your social security number on your checks nor carry a copy in your wallet. If you have to provide your number for anything, offer only the last four digits and request that your number be taken off any loan applications.

Credit Cards/Debit Cards: Carry your credit/debit cards separately from your wallet. It is a good idea to keep a secured copy of all account numbers (and pin numbers), but never carry them with you. As well, sign all new cards you receive. Never leave your credit cards unattended and be alert for "peering eyes" when making purchases; do not leave ATM receipts behind and protect all accounts with a password. Check your account activity regularly and monitor it for accuracy and any discrepancies.

Financial Documents: Shred all of your personal information whenever possible and do not carry extra cards or identifying documents with you.

Credit-card issuers relentlessly tempt you with new offers, even as they keep changing the terms of the cards you carry. However, you know you don't need five credit cards, all with different "rewards." While it's always good to have a backup for an emergency, sticking to one card will minimize the number of bills you pay and maximize your card rewards.

Invest in a credit card with low rates that will last. You'll find it easier to chip away at a balance if your interest rate is well below today's 14.1% average. A 0%-balance-transfer teaser is tempting, but you can owe fees as high as 4% of the balance. And if you can't pay it off within six or twelve months, you'll be left with the hassle of chasing the next offer. Skip the promotions and opt for a low ongoing rate.

If you pay off your balance in full and are good about not having balances with your card(s), then you should look for a card with rewards. However, make sure you utilize your spending power to the fullest. If you earn miles when you rarely fly or if you split between two or three cards, you will not get the most out of your rewards and cards.

Maybe you're not the savvy-investor type, but you have an interest in investing for some extra cash. It's easy and care-free; you can manage your own portfolio with ease by following these two steps:

Pick a mix: You'll need to figure out how you will divvy up your money between stocks and bonds, after deciding how much money you have, or want, to work with. You can use online tools to fine-tune a mix for your age and appetite for risk. However, there is an easy rule of thumb if you'd like to stick to the simplest decisions: to decide how much you should devote to stocks is to subtract your age from 120. So if you're 40, put 80% of your long-term savings in stocks and 20% in bonds. If nothing else, this simple formula ensures that you'll own an ample amount of stock when you're young and can take more risks. Every year, subtract your age from 120 again and adjust the mix as needed.

Buy index funds: For an investment that doesn't require constant care, the clear choice is an index fund. With a single fund, you can own virtually the entire stock or bond market. No index fund will ever top the charts, but history suggests that over the long run they'll earn a better than average return. You can build a perfectly adequate portfolio with just two funds: a total stock market index fund and a total bond market index fund.

Credit cards are becoming ever so popular in today's society. Even kids have their own credit cards, or at least access to their parents'. Credit cards are a growing trend among a growing industry.

The reason so many credit cards are available to anyone and everyone nowadays is for the primary reason that they are an asset to your bank. Credit cards are sold to you via a banker, who then sells your debt of the credit card to a Wall Street firm. From there, Wall Street makes big money off of your purchases by issuing you high monthly interest rates. As for your initial banker, they are left looking for more customers just like a fisherman looking for fish. This is also the reason there are so many fish (or people who use numerous credit cards) in the world.

The power of the US dollar has been long depreciating over the last few decades. This is a prime example of the dillema that we encounter everyday as we work hard for our money that doesn't seem to be working hard for us. In simple terms, if you earned $50,000 in 1996, you would have to earn $100,000 right now just to stay even. However, many people aren't earning more even though prices are rising, so they make up the difference by using their credit cards for everyday purchases.

People are taking on the tasks of taking on extra work (or a second job) to earn more money. And when they earn more money, they move into higher tax brackets. Today, the alternative minimum tax (AMT) -- first levied in 1970 as a tax against the rich -- is penalizing the middle class. In many ways, the AMT is a form of double taxation. Many working people are now making more money but taking home less because they pay a higher percentage of taxes. Credit cards are a simple solution to quick money when we need, or want, it most. However, they are also a quick jump to greater debt and/or financial troubles.