The majority of the costs in our lives are household convenience items that we purchase at a gas station or nearby retailer without regard for cost. The first step in reducing these costs is to keep an inventory of everything in your house to know when you're about to run out, so you have time to run to a cheaper outlet without making a special trip. The second step is to know where to shop to get the best deals. This article will address both of these issues to help you save money!

Step 1: Keep an Inventory

When you have to make a special trip for a household items, there are two big costs involved. First, you are forced to spend the gas money associated with driving to and from the store (not to mention your time!). Secondly, you often end up going to more expensive places for the goods, such as gas stations or small convenience stores. These costs can quickly add up despite the fact that they can be easily avoided through planning - just be mindful of everything in your house and the amounts you have left.

Step 2: Shop Intelligently

One great place to save money is your local dollar store. Dollar stores have many household items that can cost substantially more in a larger retailer. Things like laundry detergent, dish washing soap, hand soaps, mops, silverware, plates, cups and other items can be purchased for merely a dollar. These same items can be 100% or more of that price in other retailers. This may not seem like a lot, but when you purchase a lot of these, you are reducing your shopping bill by 100%+! It adds up...

People often do not realize how much they spend on convenience items and those amounts can add up quickly. Following these simple steps can help you save a lot of money!

Consumers are more depressed about the economy than ever before. The University of Michigan's famous Consumer Sentiment Index fell to 57.5 this month from 70.3 just one month ago! The drop is the single largest in the history of the survey as consumers are finding themselves saddled with debt and unable to pay their bills while costs continue to spiral higher.

The same measure averaged 85.6 last year, but began a steep decline as the economy deteriorated. Tightened credit has led to a further decline in the three-year real estate recession that has caused all of the problems. More and more Americans are finding themselves paying a mortgage on a house that's no longer worth as much as they are paying. Many have therefore stopped.

Foreclosures also continue to rise as Americans simply cannot afford to keep making their housing payments. Banks can't afford to foreclose on these houses fast enough as their own problems continue to mount. Investors who funded these mortgages are no longer interested in making loans. And the market has essentially stopped dead in its tracks.

Government interventions have attempted to free up the market by injecting cheap cash that banks can loan to start making higher interest loans again. However, banks remain nervous as consumers continue to default, even with the cheap credit. The two largest institutions, Fannie and Freddie, are both now owned by the government. There's no end in sight.

However, the storm is always darkest before the sun shows. This terrible economic environment has created a lot of opportunities for investors. U.S. stocks are cheap and many great investors like Warren Buffett are finally stepping up to the plate. Meanwhile, housing prices are at record lows for those looking to buy a new house and lending rates will be cheap when the market reignites.

Consumers should focus on settling their debts now while banks are in trouble and eager for any resolution. They should also be looking at acquiring stocks on the cheap and saving for their future. Now may be a time to rebuild instead of a time to mourn...

The Federal Reserve announced that it would double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets as the credit crunch deepens. Meanwhile, lawmakers just passed a $700 billion bill designed to purchase toxic debt from troubled banks. But where does all of this money come from? The printers of course!

Unfortunately, not even printing money is free as many countries like Zimbabwe could tell you. The more money you print, the less the money is worth. Simple supply and demand economics. So, while the US is printing all of this money to bailout the financial sector, the value of the dollar will fall as more of them hit the world markets.

A lower dollar value is good and bad news. The good news is that US goods are cheaper for foreigners, which means that exports tend to rise. This is exactly how China's economy grew so fast. The bad news is that foreign goods and raw materials cost a lot more for US consumers, so everything becomes more expensive - bad news with high unemployment and record debts.

So, how can you avoid these problems. Well, one way is to keep your money in inflation protected securities, known as TIPS. These are government bonds that protect your money against inflation. Another way is to invest in foreign assets that may benefit from the cheap prices or even purchase US assets on the cheap yourself (such as US blue chip stocks).

Unfortunately, food prices are likely to continue rising, but with your money protected, it will cost roughly the same over the long run. Meanwhile, investing in cheap US assets now could pay dividends down the road when the economy recovers.

Worried about the crisis on Wall Street? Luckily, there are a few things you can do to protect your finances amid the storm!

1. Check Your Bank Accounts - Many banks are federally insured through the Federal Deposit Insurance Corporation (FDIC), but there are some banks that aren't insured. It is important to make sure that you are so you aren't at risk if your bank goes bankrupt!
2. Check Your Brokerage Account - Many brokers are also federally insured through the FDIC, but again not all of them. Brokers are finding themselves in just as much trouble as banks, so it's important to check so you aren't at risk if your broker is in trouble too!
3. Cash is King - The montra used by hedge funds around the world right now is also true for individuals. Interest on bank accounts like ING Direct and HSBC are paying a healthy 3% or so, which is much better than many investments! Perhaps its time to keep more of your money in cash...
4. Don't Speculate - Huge banks and corporations are trading at in the pennies right now after collapsing. Stocks like Freddie Mac and Fannie Mae as well as Lehman Brothers may seem cheap, but buying penny stocks like these are not a good idea! These stocks are now worthless - the only traders are dreamers!
5. Don't Panic, The World's Not Ending - Experts on Wall Street know that the best time to buy is when everyone is selling. Right now, everyone is panicing and selling. Instead, investors should hold onto their investments and keep buying stocks now while they are low instead of later when they recover!

The credit crisis may have began in the United States, but it is quickly spreading to the rest of the world. A recent study by PayPal showed that 20 percent of Britons use their credit cards to "take them out of trouble". Money High Street reported that 15.9 million Brits regularly go over their monthly budget by up to £123. However, unlike the United States, credit card companies in Britain are taking action. The number of credit card rejections was up 17% compared with the six month period to March 2007.

The UK economy is now shrinking and is expected to continue into next year, according to the Organization for Economic Cooperation and Development. The event marks the first time that a major international forecaster has explicitly said that Britain is facing a technical recession, which involves the economic contracting for two successive quarters. It is also the onl major economy in the world that will face a recession in the next six months.

According to the report, "Continued financial turmoil appears to reflect increasingly signs of weakness in the real economy, itself partly a product of lower credit supply and asset prices. The eventual depth and extent of financial disruption is still uncertain, however, with potential further losses on housing and construction finance being one source of concern. The downturn in housing markets is still unfolding, with reduced credit supply likely adding to pressures."

New housing legislation is set to help as many as 500,000 homeowners avoid foreclosure by helping them refinance into more affordable government-backed mortgages. However, many more struggling borrowers will not qualify for the programs. Luckily, there are some alternatives for these homeowners in the form of "short sales" and "deed in lieu of foreclosure" transactions. The Wall Street Journal outlined these two strategies in their article "Two Alternatives to Foreclosure" in today's paper.

These options won't keep you from losing your house or damaging your credit score, but they will both ease and slow the process to give you time. Short selling involves the borrower selling the house at a fair market value that is less than the amount owed on the mortgage and then having the lender forgive the remainder of the debt. The other option involves handing over the property to the lender in lieu of waiting for foreclosure with the lender assuming the remainder of the debt.

Both of these options allow homeowners to escape with little to no debt, but no money or house to speak of. In contrast, foreclosures can result in lenders pursuing the differential owed to them. The two also allow borrowers to face a shorter waiting period before they can obtain another mortgage. These two options can help homeowners get back on their feet quicker than they would be able to through a foreclosure.

Employees are expecting another pay raise this year on par with last, but the increase may be offset by rising inflation rates and lower bonuses tied to company performance. Raises are expected to come in at around 4.4% among high performers and 2% or less for more mediocre workers. However, inflation is rising at a hefty 5% rate, which means rising costs will eat up most of that extra income. Even high performing workers will likely still end up losing.

The exception to this pay rule appears to be workers that fill difficult-to-replace positions or those working in growing industries. Heathcare, government and education jobs are among those that can count on decent pay raises to offset rising inflation. Other industrials that aren't willing to issue raises may face troubles with retaining key talent, according to employment experts. Companies that get too far behind inflation risk upsetting their employees.

In the end, the American economy functions such that employees are rewarded for performance. With a bad economy overhanging, it is difficult to reach and surpass performance goals. However, Americans also do not like moving backwards in pay. This conflict may end up shaking up the American workforce over the next few months as the economy slowly begins to recover.

Students have been increasingly targeted by credit card companies and lawmakers are finally starting to notice. Times may be difficult for homeowners, but teenagers with no credit or job history are finding it easier than ever to get approved for a credit card and start spending like there is no tomorrow. The House Financial Services Committee is now holding hearings to address these problems and affect changes.

The legislative panel is led by Representative Carolyn Maloney and will be hearing from the credit card industry and consumer advocates including the U.S. Public Interest Research Group. Research has shown that students are targeted and bombarded by credit card company solicitations in the mail, phone and while walking on campus. The research group found that 80% of students said they received direct mail from credit card companies and 22% received four phone calls a month.

Credit card companies are also offering freebies like t-shirts, pizzas or beach chairs to get students to apply for credit cards without thinking about what they are doing. This combination of strong marketing and lack of financial experience on the part of the students leads to many of them finding themselves in serious debt. Worse, many of these students are then unaware of how serious their problems will become in the future.

The average outstanding balance on an undergraduate's credit card stands at around $2,169, according to Nellie Mae which provides student loans. Nearly 56% of undergraduates get their first credit card by age 18 and 91% of students have at least one credit card by their final year. And by graduation, 56% of students carry four or more credit cards. Clearly, this is a problem that should be addressed now before these adults run into real problems.

Credit card companies like students because they are a relatively untapped market. Many of them hold onto the same credit cards into adulthood while college graduates typically earn enough money to eventually pay off their debts. So, all of the interest being accrued while in college is paid off and they keep the card longer - the perfect customer. Indeed, many students handle their debt much better than the average adult population.

Those reaching retirement age may not have to save up for a car anymore, but they are digging deep to pay the increasing costs of prescription drugs. More than half of all insured Americans are now taking at least one so-called maintenance drug for a chronic condition, according to a recent report.

The increased demand has lifted the price of such brand-name medications some 2.5x faster than the rate of inflation last year. Luckily, there are many ways to lessen the pain without resorting to shady practices like traveling to Canada or Mexico and smuggling drugs (prescription that is) back into the U.S.A.

Many discount chains have begun selling their own prescription drug programs to provide an alternative. Wal-Mart began selling 30-day supplies of generic drugs for just $4 each and recently unveiled another plan providing a 90-day supply of generics for just $10 (or your co-pay if it's less).

Another growing trend is mail order pharmaceuticals. Some employers are now requiring their workers who fill the same prescription for three months in a row or more to order 90-day supplies from an approved mail-order company. It is wise, however, to check out these companies before using them as many are sketchy.

These two alternatives are becoming increasingly popular as insurers are raising co-pays on brand-name drugs. Generics have always been cheaper than brand-name drugs, but it has been increasingly costly to insit on a brand-name. The average co-pay for a brand-name drug is now $43 compared to just $28 in 2001.

So, the next time you hit the store to fill your prescription, ask yourself if there is some way you could do it cheaper!

Automated Teller Machines (or ATMs) are among the most popular methods for people to get cash out of their checking accounts. Naturally, this has attracted a number of criminals that are interested in gaining access to such cash quickly and easily. There are many ways that criminals can do this, but practical security measures can help you avoid running into any problems.

The most popular form of theft is through a technique known as skimming. This involves inserting a device into the card slot of ATMs that will steal the data right off your card's magnetic strip. The highest risk machines for this type of practice are convenience stores that are allowed to maintain their own ATMs as they can be easily tampered with without the bank knowing. The best way to prevent this is to use bank ATMs as much as possible.

Other thieves have gone through more extreme measures and actually installed software on a banking server that can capture the electronic encrypted PIN number as it passes through, but such instances are very rare. Again, this can be avoided by simply using the ATM machines located at your bank's branch. These are closely watched with security cameras and never tampered with by criminals.

Ultimately, a criminal will need your PIN number in order to access your account. As a result, one great way to reduce your risk is to change your PIN number often and keep it as random as possible. People that use the same number for multiple accounts can see more than just one of their accounts drained. Meanwhile, those that have a PIN number equal to their birthday or house number see a higher rate of crime.

One final piece of advice deals with making online purchases. It is always best to use your credit card whenever possible because they are required to assume nearly 100% of the liability in most cases. Debit cards, on the other hand, often assume little or no liability and you can be stuck footing the fraud bill. Also, you will never be required to enter your PIN number online - anyone that asks you to do so is trying to rip you off!

The bottom line is that there are basic measures that you can take to protect yourself from becoming a victim of ATM fraud. Using your local bank's ATMs and changing your PIN often can reduce your chances to nearly zero while making online purchases with a credit card can protect you in that arena. Remember these tips your next time using an ATM!