We’ve all heard and seen the gimmicks to buy more, save more. "The more you buy, the more you save" theory works IF you are out to buy a lot from the beginning.  Plain and simple, if you are not out to buy 10 t-shirts for $20 and only need one for $5, stick with just buying one. Yes, it may be nice to have nine other t-shirts available to you, but if you don’t need them, don’t buy them.  It’s a great deal if you specifically need to buy 10 t-shirts.  However, if not, then you are left throwing away that extra $15.
 
The same goes for food and other household necessities and commodities. Buying food and household goods in bulk always seems like you’re saving money.  Although you may eventually use up that 40-pound bag of Cheerios within the next year, do you really need to save that $3 in hopes that you use it all before it gets stale?  Will you and your spouse really need five-pound bottles of shampoo and conditioners?  It makes sense if you have a large family, but if you do not need such large quantities of an item, do not be sucked into the scheme to buy big just to save big. 

If you have the resources to buy bulk and know that in the end it will be a wise investment, then by all means do so, because it will save you an average of more than 30% over the course of a shopping trip and year.  However, if you do not need to buy bulk or know you will have to let some of it, or all of it, go to waste, not only should you avoid it for the sake of not wasting food and other items, but also for the fact that you’d be wasting money. 

Buying in bulk really can save you money, if you shop appropriately for what you need. 

With so many more bulk warehouses/stores being put up in place of everyday grocery stores, it only makes sense to check out the savings you may find there.  However, do not be fooled by all you can buy at a bulk warehouse.  Not everything at warehouse clubs is sold in bulk, such as a single gallon of milk or one ink jet printer. In those instances, the savings may not amount to much, so be sure to compare prices first, as always.

As with any type of shopping, not only compare prices, but also make sure you are not buying too much of an item that may perish before you can use it all. Do not over-buy for savings – even if it may very well be a steal. You will end up losing money if you buy and but do not make full use of your purchases within their [limited] time frames.    

Bulk shopping does save, if you know how to shop. 

The most recent [official] poverty statistics from the US Census Bureaus are from 2005.  During that year, there were 37 million Americans affected by poverty (nearing 13% of the US population).  Those numbers are outrageous for the fact that, in short, poverty consists of anyone living below US living standards.  

Poverty Among the Races and Ages
These poverty rates remained statistically unchanged for Blacks (25%) and Hispanics (22%). However, the poverty rate has decreased for non-Hispanic Whites (8.3% in 2005, down from 8.7% in 2004). Meanwhile, the poverty rate in 2005 for children under 18 (17.6%) remained higher than that of 18-to-64-year-olds (11%) and that of people 65 and older (10%), all of which were unchanged from 2004’s results. 

The Technical Poverty Calculator
With help from the Office of Management and Budget's (OMB) Statistical Policy Directive 14, the US Census Bureau uses a set of money income thresholds that vary by family size and composition to determine who is affected by poverty.  If a family’s total income is less than the family’s threshold, then that family, and every individual in it, is considered in poverty.  The official poverty thresholds do not vary geographically, but they are updated for inflation using Consumer Price Index.

The official poverty definition uses money income before taxes and does not include capital gains or noncash benefits (such as public housing, Medicaid, and food stamps). The lines of poverty are found through calculations of monetary income and through the measure of need (dependent on the size of family and the ages of the members). For individual members, the same calculations apply.  However, if a family is found in poverty, each member of that family under one house is considered living in poverty at the same level.   

For example, based on the OMB calculator, if a family has five members (two children, a mother, a father, and a grandparent) living under one roof and, collectively, they make an approximate of $25,000 between two working members of the five-member household, then the family’s income is above the threshold limit (calculated for this specific family at $23,108 for need and income, inclusive of all five members).  The family comes out ahead of the poverty limit. 
 
Any family or individual that has calculated their yearly income (based on needs) to be more than their calculated threshold set by the OMB, then they are not in poverty.  If their yearly income is less than their threshold calculations, then they are living in poverty. 

The difference (in dollars) between family income and the family's poverty threshold is called the Income Deficit (for families in poverty) or Income Surplus (for families above poverty). 

Living Without Status
There are people in the US unaccounted for living in or out of poverty. These people do not have a determined poverty status due to their living conditions/arrangements. For example, foster children and children under 15 years of age, not living with a family member and without official income results, are prime examples of people unaccounted for due to lack of income results.  As well, people placed in institutional group quarters, such as prisons or nursing homes,  and college dorms or military barracks are also without an account for poverty status.

Subprime mortgages are loans that are made to borrowers with poor credit histories, and make up approximately 13% of the $10 trillion mortgage market. Lenders have traditionally been more generous when it comes to house loans since they can be collateralized. And since property values have done exceptionally well during the past few years nobody had a problem. This changed, however, during the past year or so when the residential housing market began taking a downturn. Many people with poor credit who owned houses had mortgaged it to help pay off credit card bills, and found themselves in trouble when the appreciation on their house suddenly stopped. This caused a sharp increase in defaults on loans during the past few months.

Risky lenders like NovaStar (NFI) and New Century (NEW) saw their income erode as borrowers with poor credit found themselves unable to pay off their loans. Subprime lenders like these make a profit by making loans and then selling them to brokerages that resell pools of mortgages as securities in a process known as securitization. The problem is that with the increasing number of defaults, buyers of these loans began demanding that the lenders buyback bad loans. Shares in New Century and NovaStar each lost more than a third of their value in a single day earlier this month after the lenders warned of deteriorating lending conditions while three other subprime lenders have already declared bankruptcy.

The lesson? Make sure to only spend what you can afford. Don't take out mortgages on your house if it doesn't make sense. It may take awhile for lenders to dig themselves out of this hole as a result.

For most people severely in debt, they already have contacted, or will soon contact, a credit counseling agency/organization.  When doing so, there are a few factors to be cautious of.  Please note that most credit counseling agents are free for initial techniques and budgeting practices, as well as advice for the future and your next steps in the debt process. 

Be cautious of agencies that charge high up-front or monthly fees for enrolling in credit counseling, or that pressure you to make "voluntary contributions."
Avoid agents that don't offer, or won't, to send you free information about the services they provide without requiring you to provide personal financial information, such as credit card account numbers, and balances.

Agencies may try to enroll you in a DMP (debt management plans) without first teaching you budgeting and money management skills, and that is a definite discretion.  

Never get involved with a DMP program that requires you to make payments before your creditors have accepted you into the program. 

The FDA warns us against buying prescriptions from abroad. There is always the danger of either getting the wrong drug entirely or receiving too much or too little of the right drug.  These complications could be very dangerous, and it won't be worth the cost of the little you'd save.  How then are you supposed to afford those overly-priced prescription drugs that are funding the pharmaceutical parties and retreats every weekend?  

There is hope for lower prices for prescription drugs.  The most basic strategy to getting your hands on cheaper prescriptions is to simply get generic drugs from your pharmacy and to avoid the name-brand drugs.  This may save you some money, but it may not be enough.  
 
It is important to talk to your doctor right away about your financial troubles with the high costs of prescriptions. Your doctor may have instant help/access to discounted or free drugs. As well, your doctor can help you find prescription assistance programs. Depending on the type of drug and the degree you need, your doctor may be able to recommend to you OTC (over-the-counter) drugs that you can buy at any store or pharmacy for much less than prescriptions of the same, or similar, drug contents.  

There are various community, state, and national prescription programs which help you access pharmaceutical freebies, or at least discounted drugs.  Through these assistance programs, which are free to anyone, you can apply for different types of programs of prescription coverage or for individual drug assistance.  PPA's (Partnership for Prescription Assistance) are becoming ever more common and accessible with the growing prices and troubles with healthcare (www.pparx.org).  Also try an online search run by volunteers in health care for medicines and manufacturers, as well for assistance programs nationwide that best apply to you (www.rxassist.com).

As with anything, you must shop around your neighborhood or legitimate online pharmacies for the best prices on prescription drugs.  Whether you shop at local pharmacies or online, the FDA recommends purchasing only from state-licensed pharmacies that are located in the United States.  Contrary to theory, Canadian prescriptions actually cost more on average than US prescriptions when both compared with the US dollar (always include shipping fees to Canadian prescriptions as additional charges).

You know of eBay and of its glorious power to sell/recycle your old clothes, furniture, books, electronics, and the rest of your life under the sun.  However, there are many more opportunities to earn money by getting rid of your old possessions through recycling.  Not only will you be saving the earth from more garbage, but you'll be earning cash on the side by doing a good deed or two. 

You quite possibly are involved in recycling your aluminum cash for a few extra bucks every month, but there are far more items to recycle for cash. A few things that are becoming ever more common to recycle include ink/toner cartridges, cell phones, eyeglasses, and scrap metals.

Scrap metals involve old air conditioners, vehicles, appliances such as refrigerators and washers/dryers, and much more, and can be sold for good money through such sites as xomba.com. Not only can you earn good money for them through whatever means you choose to sell them, but they will also be donated to good use the majority of the time, such as emergency situations and reconstruction for cities and families that have gone through such disasters as hurricanes and tornadoes. 

We are in a generation of amazing technology, continuously changing and expanding; this allows us to continually update our old cell phones, leaving the old ones to sit in a drawer. There are companies that will buy back old cell phones for up to $50 or $60, depending on the style and condition of the phone. 

As well, take part in the ever so popular means of re-selling, or recycling, your old clothes, furniture, books, and electronics through such sites as eBay.com and amazon.com.  This not only helps you earn money for your old possessions, but it helps others have the ability to buy items they need or want for a discounted price.  

You have the power to earn money by recycling a wide array of items.  Look into online sites and find the best prices for your items of all sorts before you sell to the first site you find. Do your part by recycling and, in turn, earn cash as your reward.  For a listing of many various items to recycle, go to http://www.obviously.com/recycle/guides/hard.html. Some of these items you may never be able to earn money for, but at least you can help out the environment a little.

We've all been offered the valued shopper cards and deals. If you join a grocery store's "club," you feel like you'd save a lot more money with the savings offered through their club cards. However, in general, this is a definite misconception. Club cards are used more as an incentive to consumers and consumers don't always recognize the fact that the price differential is not nearly present.

In the majority of major (chain) grocery stores that offer all customers their club cards, you may actually be paying more for those guaranteed savings.  On average, the majority of these stores raise their overall prices, in which you may then possibly save enough to break even. Stores that don't offer club cards have proven that they offer lower prices, overall.  

The best option is to shop around and price compare. From there, make sure you are really saving with "club card" offers and deals.  If you are ultimately paying more, with or without a card, it makes no sense to shop at those stores. The worst deal you could find is to pay money for a "club" membership if you cannot prove that you will be saving more in the long run.  As well, if you are ever a new, or visiting, customer to a store, always opt for the club card for those additional savings, even if you are to never use that card or store again. Sometimes the only savings you may find on a club card are in comparison to those who don't use a club card on the same items/stores, but you are still saving in that aspect.  

The best way to save is to shop around and compare prices. Find the best deals with a little time and energy, and never fall for the club cards without first doing your homework. Your savings may simply mean the exact opposite in that you are paying more.

Most people are aware of credit scores, as they are used in determining lending rates on homes, cars, and other large loans. Credit scores measure how likely a person is to pay back a loan based on their past credit history of obtaining and paying off debt. But few people know about another metric that lenders have also been using during the past twenty years: the bankruptcy risk score. Rather than determining how likely someone is to pay off their debt, the bankruptcy risk score takes a look at how likely they are to file for bankruptcy. This metric is then used in conjunction with credit reports by long-term lenders to determine interest rates and loan amounts.

Unlike credit reports, bankruptcy risk scores are not available to the public, making it impossible for people to dispute records or view their ratings. Credit agencies have kept this information confidential, claiming that it is "proprietary data"; however, financial experts believe that it incorporation your spending habits, credit card use, and your credit score. The score is calculated on a -200 to 2018 score, with lower numbers indicating lower risk and higher numbers indicating higher risk. While there is nothing that can be done to affect bankruptcy scores, it is important for people to know that they exist and that it may play an important factor in larger future loans.

Many of those who are in debt are afraid to seek help through credit/financial counseling.  This resides in the fact that some counseling agents charge a fee, which would only seem contradictive to the problem of already being in debt.  However, most credit counseling services are free and offer service to anyone with any degree of financial struggles. 

Credit counseling services can be found online as well as in your local phone book. Make sure to search specifically for free credit counselors through online sites, the White pages, or the phone book to save you the time and hassle of dealing with services that may charge you a fee.  You may have to shop around to find the service that best suits you or that you feel most comfortable with, but you will find someone to help.  While looking around, make sure to inquire about any and all fees that may apply right away.  Don’t put yourself in greater debt while seeking credit counseling. 

Think of debt counselors as volunteers to a cause of financial advice.  If you are in need of food, you have food shelters to go to.  If you are in need of medical attention or advice, you can find free services.  This is the same concept with debt counselors – there are people in this world that are willing to donate their time, energy, and expertise to help you with your financial struggles – for free.  Take the time to seek credit counseling through a local, or online, free non-profit credit counseling service right away before your debt takes off.   

There is a simple factor to saving money on shopping: outlet stores.  Instead of paying high prices for brand names, locate the closest outlet mall near you and check out their stores.  There are hundreds of outlet malls in the US, offering thousands of higher-end stores and brands. 

There are a couple of tentative downfalls to an outlet mall consumer, however.  You may have to travel a bit to get to an outlet mall, but most are found in either larger cities, or in nearby suburbia. Also, outlet malls may not necessarily be up-to-date with this year’s trends as they may be using last year’s lines.  It is possible that some items found in an outlet store may be defective and/or only created for the outlet store and not found in the company’s regular stores elsewhere.  This, however, is no reason not to shop at an outlet store.   

The fact is that outlet malls offer amazing savings in all areas of shopping, whether clothing, home décor, appliances, or electronics. Whether or not a store may be offering deals (which are common), you are still bound to find savings of an average of half price off all items, in comparison to shopping at a mall or department store.  Outlet malls offer new items, but at a great discount.  As well, outlet malls offer more variety than the average store, with continuously changing selections.

Members of the Senate Banking Committee are set to begin their first consumer-orientated examination of the credit card industry today, to examine ways in which they can tighten billing, marketing, and disclosure rules have led to what some see as high consumer debt and excessive fees. New Banking Committee Chairman Christopher Dodd is heading the examination, and said he plans to enact legislation that would require credit card companies not to raise fees and interest rates on card-holders who want to cancel a card and disclose the length of time required to pay off balances when making only minimum monthly payments.

Meanwhile, The American Bankers Association, which represents credit-card issuers, says it respects the Senate's rights to look into card industry issues, but cautioned them to act carefully. Ken Clayton, an industry's card policy head, said that he hope that Congress will take no action that directly or indirectly increases consumer costs, reduces availability of credit or otherwise limits competition or innovation in this very dynamic industry. The meetings also come just as several major credit card companies are preparing to IPO - most notably Real Visa, which would join MasterCard and American Express as public companies. Overall, decisions made in these meetings could have wide reaching implications that could affect both consumers, credit card companies, and their investors.

Charity credit cards, or "affinity" credit cards, get their name from the bond between a charitable advocacy or other non-profit organization and a credit card company. These cards are sometimes offered exclusively to an organization's donors or members. Most of these credit cards, however, are issued by banks and credit card companies under agreements worked out with individual charitable organizations. These cards are similar to other credit cards but have an additional feature - this specified charity receives a financial benefit from the credit card company. The ideology behind a credit card that supports a non-profit organization or charity is brilliant, but the process may not be equivalent, or even valid. There are some factors to consider before deciding to apply for an affinity credit card to which supports an organization you are familiar with.  

Each credit card is different, and offers vary in terms of how the charity benefits, as well as the terms of the credit agreement with you. The charity usually receives a benefit in one or more of the following ways: a certain percentage of each of your purchases every time you make a purchase with the card; a certain dollar amount every time a new customer signs up for the card; or a portion of the annual renewal fee for the card.

You must read the promotional literature in order to understand exactly how the charity will benefit. For example, one affinity card offered declared that a specified national charity would receive half of one percent of all transactions made with the card (that's 5¢ for every $10 you purchase). If the financial benefit for the charity is not spelled out, ask before signing up. It is also important to consider the specific terms as you would any credit card offer, including the amount of interest rate or finance charges along with the annual fee, if any, the late fees and over the limit fees, if any, and the length of the "grace period."

However, do not apply for an affinity card for the purpose of tax breaks. Any amount that the charity receives from your involvement with an affinity credit card cannot be used by you as a charitable donation for federal income tax purposes. The "contribution" is actually being made by the credit card company.

Affinity credit cards can be worthwhile if they meet your criteria and if the charity, of your choice, actually benefits from it. As with anything, take a few minutes to do your homework and you will make a better decision for the long run.

You may not realize it, but your house is large contributor to CO2 emissions - it's not just automobiles and factories that act as the greatest villains. Thanks to the innovations of such companies as Bosch and Kohler, they are offering more energy-efficient, or “green,” appliances. There is now a growing number of companies that are now turning their attentions to energy conservation. New appliances will help move the US and world to a more green lifestyle by Conserving water, lowering electricity usage, and reducing emissions.

Homes have a carbon footprint that we are now just starting to be aware of. If you consider driving to work and leaving your car running all day, that's the same thing as leaving your home home you leave when you go to work each and every day. As energy costs have skyrocketed since 2004, consumers are beginning to get the message, and so too are homebuilders and the home remodeling industry. Common household names like Kohler, Viking, Whirlpool, General Electric, Sherwin-Williams, and Dow are offering innovative, green product lines in a $40 billion-a-year industry that won't break your budget.

Until you may have access to a new washing machine and dryer, or a new refrigerator or oven, think about the simple acts you can take part in each and everyday to save energy - and money. Any elementary school student can tell you to turn off the lights in a room that isn't being used, just as you should keep your heat low or off if you are not home or in need of it. Energy bills are incredibly expensive these days, so do your best to keep your use of energy (and water) down around your house to help the environment and your wallet.

According to the National Retail Federation, U.S. consumers are expected to fork over almost $17 billion this year on Valentine's gifts for their loved ones. That's $17 billion spent on one day -- in the name of love.

Valentine's Day is the third largest retail holiday of the year. What about the theory of "money can't buy love?" This apparently is a changing mindset as we scramble to empty our wallets in order to show just how much we love someone. The average woman will spend $85 and the average man will spend $156 this Valentine's Day. This is a lot of money to show someone simply that you love them and care for them. Isn't it the thought that should count, not the price tag?

I challenge you to express your true feelings with gifts from the heart rather than from the wallet. And if you've already bought Valentine's Day presents for your special someone, that's okay - shower them with both kinds of gifts this year and apply this advice for next year.

This Valentine's Day, try to forget about the material goods and the cost of love, but look deep for some truly heart-felt creativity to express your love to that special someone. Cook an amazing meal instead of spending hundreds on a fancy dinner, or make your own gifts and cards instead of buying them. Think of all of them money you can save; you may even be able to save so much you could apply it to a romantic getaway in the future. Be wise on the money you spend, for you are not buying the love you already have.

Corporate credit cards are a convenient way to travel or entertain for business, just as they can also be your ticket to free vacations, home improvement and spa treatments. It does not involve charging personal accounts to your company, but it does require your employer to sign up for rewards programs offered through corporate credit cards.

First you must find out if your company allows its employees to reap the benefits of the card's reward programs. Not every company allows its employees to have full use, or any use at all, to its corporate credit cards, and for some very good reasons as rewards programs, particularly those offered by Visa and Mastercard, can cost companies money to sign up for. Also note that membership in such rewards programs aren't automatic. If you have an American Express card, you or your company will have to pay a $75 sign-up fee; similar fees are charged by other credit card companies, as well.  

It is a good idea to research what types of rewards are available. Most credit card companies provide a list of partner airlines, cruise companies and hotels. Some also have deals with electronics companies from Dell to Sony, while others allow you to purchase furniture from Crate and Barrel and other stores. Some rewards can also be found through concerts and sporting events.  It may take time to rack up points, so users must decide if it may be worth it.  

To reap the most of your rewards, see if you can combine points from your corporate card with your personal card in order to double your rewards points.  Before you begin your investigation into earning yourself some amazing rewards, inquire to your employer about working with/receiving a corporate credit card with a rewards program. It is always helpful to ensure the possibility that everyone in the company will find rewards that suit them, with nothing to lose.

Many Americans fear retirement almost as much as they strive for it. Some feel that they are behind in their savings, but fail to discover just how behind they really are. The key to solving this problem is to simply take action! Instead of wondering how behind you are, consult a financial advisor who can help you determine exactly where you are at and how you can achieve your goal. In fact, many studies have shown that the very act of seeking financial help can drastically improve your odds of success.

Begin by first collecting all of your financial information, such as your 401(k) plan, bank statements, brokerage records, estimated social security benefits, and any projected pension or retirement plan payouts. With this information, you can do a basic calculation on your own to see how much you need to save each month in order to retire comfortably. There are many online retirement calculators that can help you with this. Then, if you find that you are quickly falling behind, it is best to contact a fee-only financial advisor who can help you find ways to get back on track. Remember, the sooner you find out about your situation, the more quickly you can correct it - there is no sense in procrastinating!

You have hundreds of them, maybe even thousands - it's money in your pocket, and it's everywhere. Spare change is cash waiting to be exchanged. Do not just toss your spare change anywhere, against the fact that most people find it in pockets of their clothes, on dressers, in drawers, and left at the bottom of backpacks, purses and bags. Each day, take your change and place it in one place, such as a specified change jar. Many people have been using a change jar ever since they were little, and even to this day the practice is still embraced by many. It doesn't necessarily have to be a jar either; it can be a cup, an old cigar box, etc. The point is, don't throw away your change or lose it, for it is valuable money waiting to be exchanged into cash.

Save up all of your change for special savings, an "indulgence" savings. Your change should be a gift to yourself, but you need to be patient with it for it to become a worthy amount of cash.  I would recommend only exchanging your change for cash every half year or year.  Also, it is most necessary that you do not dig back into your change jar to grab a few dollars in quarters here and there.  Even if you need to do laundry, your change in your jar should be considered sacred; don't touch it.

Some banks will only count your change and turn it into cash for a small fee, such as 2% or 5%, or for a minimum of $2 or $5.  However, some banks and most credit unions do exchange change for cash for free for their customers. If you don't want to bother with cashing in your change at a bank, consider bringing your change to a Coinstar machine, located at over 10,000 supermarkets. Coinstar charges 8.9% to sort and count all those coins you saved.  However, it may be worth it.  If you have $30 worth of coins, 8.9 percent is $2.67. By the time you sort, roll and write your name and account number on the wrappers, it's worth the $2.67.  At the rate of paying 8.9%, you may also want to reconsider giving in to the smaller percentage charge at a local bank. Either way, your change can quickly be turned into a good amount of cash. Just think, if you save an average of just $0.30 a day everyday, you will have over a $100 within a year.  You wouldn’t throw away spare bills, so don't throw away your change!

When we think of debt, we generally think of middle to lower-classes.  However, this is not the case anymore. The nation's personal borrowings show that the upper-class is piling on debt faster than the middle class, though for very different reasons.

According to the Federal Reserve Board's Surveys of Consumer Finance, the nation's richest 1% took on $342 billion in new debt between 1998 and 2004, the latest year for which data are available. (The 1% represents households with net worths, including primary residence, of at least $6 million.) Economists say that debt number has probably continued to grow since 2004, because interest rates remain low by historical standards.

Just as the rich control a disproportionate share of national wealth, they also account for a disproportionate share of debt. The richest 1% now hold 7% of the nation's debt, with a total of $650 billion in borrowings, up from 5% in 1998. Debt for this group grew faster than for any other group in the Federal survey. Total debt held by the top 1% increased 150% between 1998 and 2004, compared with growth of about 100% for those in the 50th-to-90th percentile wealth range. The rich, in short, have joined the great American borrowing binge.

The reason behind the richs' debt?  Simply that they are continuing to buy and buy and buy.  After buying a few homes and funding ever-more lavish lifestyles, today's risk-friendly rich are embracing debt as a way to expand fortunes and fund increasingly materialistic lives.

Yet, there are some differences in the borrowed funds for the rich in comparison to the rest of the nation. Unlike many lower-income Americans who rely on credit cards and home-equity and other loans to meet living costs, the rich often use debt as a financial tool. Their debt is generally used for mortgages on their primary or nonprimary residences, according to the Federal data. They may have plenty of cash to pay for their investments and "toys," but they would be better off keeping the money in higher-returning investments or businesses.

It is suggested that the rise in the growing amount of debt among the rich stems in large part from the growing pressure among the elite to keep up with richer peers. The biggest differences in wealth today are among the rich, with simple millionaires getting shoved aside by decamillionaires, centimillionaires and billionaires.

In short, there is continuous game that involves the top 1% struggling to keep up with the top 1/10th of 1%," he adds. Those people trying to keep up with the top 1/100th of the top 1%. There is a drive by the merely rich to keep up with the obscenely rich.

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."