Food is the third most costly aspect of our lives. However, when it comes to organic foods, the price tag is much higher. US shoppers who consistently choose healthy foods spend nearly 20 percent more on groceries. The study also said the higher price of these healthier choices can consume 35 to 40 percent of a low-income family's grocery budget. Organic foods are, by far, the most expensive of all groceries.  

Analysts claim that the demand for organics drive prices down over time. However, that is not the case so far. Even though organics sales are growing by about 20 percent a year, nearly10 times the rate of increase in total US food sales, these cleaner, greener products still carry a hefty premium.

Today, roughly three-quarters of conventional grocery stores carry natural and/or organic food, according to a 2002 Food Marketing Institute study. Restaurants across the country, from the high end to the greasy spoon, are plunking organic ingredients onto their menus. Still, organics represent only about 2 percent of the food industry, both in the U.S. and worldwide. And less than 10 percent of U.S. consumers buy organic items regularly.

If you are one of the go-hard organic goers, you already know that you have to account for the greater costs of your annual food bill. If you are only the occasional organic shopper, your bank thanks you for now. It is important to know the difference among foods when buying organic versus the non-organic. Ask your local grocer about the differences among meats, fish, fruits, and vegetables when they are or aren’t organic. Some foods aren’t different, although the price tags may represent a gap larger than the Grand Canyon. However, there are a large number of organic foods that truly present a much healthier means, and that may be worth the extra few dollars. 

We’ve all been caught fighting our consciences: whether to pay $9 for an alcoholic mixed drink, or to pay $5 for a coffee drink. The fact of the matter is, if you are to splurge on such beverages to go, such as a Starbucks coffee, a vending machine 20 ounce soda, or a night on the town with too many to count mix drinks, do it sparingly. The costs of splurging on such beverages to go can be costly, and these costs will quickly catch up to you. There is hope.

Plain and simple, the answer to saving yourself money is to supply yourself with the beverage of your choice at your own home.  Sure, you may be missing out on the ambience of the quaint little coffee house down the street or the music of the live band at the local pub, but it will pay off once you realize how much money you can save. There is no need to entirely cut-out spending money on buying beverages outside of your home, but just watch your spending carefully.  Instead of making a Starbucks stop every morning on the way to work, try making your own coffee at home – even if you choose to buy bagged Starbucks coffee, ground or whole bean.  

As for buying a 20 ounce soda from the work vending machine for $1.25, buy a 6, 12, or 24-pack of soda (cans or bottles) at the store and save around four times the amount of money you’d otherwise spend on buying a soda at work when you can just bring a can or bottle from home.  The same goes for juice.  Instead of buying an individual bottle of apple or orange juice, you can easily bottle your own or buy a larger quantity pack of individual bottled juices to take on the road with you. Items that you can buy at the store and use for the road at your convenience will save you a lot of money in comparison to buying one at a time while being put on the spot.

The same concept goes for alcohol. You can easily buy a bottle for a fraction more than the cost of buying just one drink out on the town. As this is not to prevent you from painting the town red occasionally, it is to suggest that it will be cheaper to throw a shindig at your place once and a while. As well, set a limit for the amount of drinks you wish to have and plan accordingly for the costs when you do decide to visit the bars; do not surpass your limit (financial or drink limit) throughout the night. Drinks can be costly, especially when the end of the night approaches and you have far exceeded your wallet’s restraints because you have not only bought more drinks than you need, but you have also bought the entire bar a round of drinks and shots.  

Think about the beverages at your home. Buying beverages, such as juice, soda, alcohol, and coffee at the store and utilizing at your own home and at your own convenience will save you a lot of money.  You can easily buy individual bottles in large quantity packs, or you can buy large single bottles in which to carry with you in a water bottle or another container, such as an on-the-go travel mug. This can be applied in any situation on the go: work, traveling on the road, flying, school, or sporting events. 

Life is expensive, plain and simple. Where does all of our money go?
 
1.    Housing
The largest life expense is housing.  Consumers spend an annual average of $12,320. That's roughly a third of average annual expenses.  We all need a place to sleep, and so our budget shows.  We sleep 1/3 of our lives away, why not pay 1/3 of our annual budget to housing then?
People in the West and Northeast spent the most on housing; $14,000 and $13,500, respectively. Midwesterners came in third, at about $12,000, and Southerners paid the least, clocking in at $11,000.

2.    Transportation
Transportation comes in at second place for the most expensive costs within our annual budget.  Transportation costs continuously rise each year.  In 2000, consumers spent about $7,500 a year, or almost 20% t of annual expenses just getting around. Those costs come almost exclusively from cars: 46 cents of every transportation dollar spent went to vehicle purchases, 17 cents to gasoline and motor oil and 31 cents to costs like auto insurance and repairs. Only 6% was claimed by public transportation.

3.    Food
Eating absorbs another 14% of consumers' total yearly expenses. In fact, this basic necessity is claiming a larger portion of the budget pie as dining out becomes increasingly popular among busy, dual-income families. Of the $5,150 or so spent on food, only less than 60% went to groceries eaten at home.

4.    Entertainment
Only about 5% of our annual budgets are spent on entertainment, with such expenses as vacations and movies. With the inclusion of dining out and alcohol, the budget jumps to about 11%.  This varies greatly by age, as the younger generations spend more on entertainment, coming close to spending 14% for those under 25.  It is also believed that senior citizens tend to also spend more, on such means of entertainment as vacations. 

When participating in any type of gambling, it is important to always know the risks you are taking on, financially speaking.  Gambling in the US is a growing problem, with a growing number of addicts and people finding themselves more and more in debt than ever before.  On average, over 60% of American adults gamble over the past twelve months on some activity. Over 80% of American adults believe that gambling is legitimate and that casinos are okay. Gambling is truly an industry of money, as it generates more revenue than movies, spectator sports, theme parks, cruise ships and recorded music combined.  The gambling industry has become a $40 billion dollar a year industry in the United States. It is okay to gamble occasionally, but it is important to know how to gamble responsibly. 

It is vital that you never gamble for investment or income. With this said, even playing to “earn” $5 is a risk that you should know you’re taking.  The amount of the matter is important, yes, but the overall fact that you should not be gambling to earn money at all is more important. 

Also, know and understand the type(s) of gambling you are participating in before you do so.  Know the odds you are against, as well as how the games are played and work, whether it be Blackjack, Craps, slot machines, Roulette, poker, etc. 

It is important to use money that is designated for entertainment expenses only among your financial budget. Never use your finances that are intended to pay bills or support your daily life, or that of your family. If you are digging deep into your savings for money to gamble with, that is a sure sign you should not be gambling. Never borrow money from family or friends.  Only use money that is yours and that is specifically intended as extra money to use as you wish.   

Always set a budget prior to your gambling and stick to it.  If you go to a casino, only bring a set amount of cash with you, and do not bring an ATM card that you can later withdraw more money from if you lose your cash-on-hand. As well, it is always a bad idea to gamble with personal possessions. Once you are out of money, then you should be done. Also set a limit for your winnings, in case you are lucky enough to win.  If you set $50 as your winning limit, call it quits for the day once you win that $50.  Do not continue to gamble past your limit as you have better odds to lose that money sooner that later.  Be aware: risk increases at times of loss or depression, and this is the time when you are bound to want to continue gambling to earn back your losses.  The odds are most against you at this point. Once you have lost the cash you have started with, it is time to quit. 

It is important to watch how frequently you participate in acts of gambling. Gamble only as a treat for yourself, such as going to a movie or out to dinner. You will begin to develop true habits of a problem gambler if you desire, or need, to go everyday or as much as possible.  Gambling is an issue of you losing money, while the gambling industry wins it, as the odds are always against you.

You credit score will help or hurt you, and it’s up to you to help or hurt your credit score. You may be accepted, or rejected, for a line of credit, and it’s all waiting on your credit score and what you’ve done to help or hurt it.  Here are five tips to watch out for to prevent damaging your credit score:

1.    Bad Credit History
Past credit history usually counts for 35% of your credit score.  Missed and late payments will dent your score, with negative entries on your credit file for six years. However, the impact of missed and late payments diminishes over time, especially if you have been making payments on time. You will see changes for the better on your credit score if you make the effort within a year.  

2.    Current  Address
Lenders like continuity. A score will be higher if you have been at the same address for three years or more. There may be some impact if you have had two addresses in the last three years, but less if you are a homeowner. The greatest impact will found within having multiple address within the last three years or if you have been at your current address for less than six months.

3.    New Job
As with residency, when it comes to employment continuity is also vital. Ideally, lenders are looking for someone who has had the same job for a number of years. Such applicants will benefit from the maximum score for this. It is important to be in your new job for a few months before applying for new credit. It will not affect your credit score by having multiple jobs at one time.  It is, however, a bad idea to go through many jobs and not be able to maintain stability within the workforce, such as having three different jobs at three different times throughout three different years.  As well, periods of unemployment also will negatively affect your credit score.

4.    No or New Bank Account
Lenders will award maximum points if you have been with your bank for a number of years. Having only recently opened your current account will reduce the score. Not having a bank or current account will be most detrimental to your credit score.

5.    Multiple Credit Score Applications
Every time you apply for credit, a search is made and will be recorded on your credit file. Multiple credit applications in a short space of time will negatively impact your credit score. Such applications may be perceived as indicative of someone desperately trying to obtain credit. It is commonly accepted that making one credit application every month or two should not have too much impact on your credit file. However, if you have recently made a number of applications and been declined, it is advisable not to make any new applications for six months before applying again. It also gives you time to review your credit file and determine if there is anything on there which shouldn’t be.

1. Keep Your Numbers to Yourself

It is crucial that you protect your Social Security number, credit card and debit card numbers, PINs (personal identification numbers), passwords and other personal information. A thief can use these details to order checks or credit cards, apply for loans or otherwise commit fraud using your name. Do not provide financial and other personal information in response to an unsolicited phone call, fax, letter or e-mail, as it could be from a fraud artist masquerading as a legitimate business person or government official. Be particularly cautious with your Social Security number (SSN). Keep bank and credit card statements, tax returns, checks and other sensitive documents in a safe place at home. Shred these documents thoroughly before discarding them.

2. Know Who You’re Dealing With

Deal only with legitimate, reputable businesses. Only participate in business with companies you already know or that have been recommended by people you trust. Do your research before giving money or personal information to an unfamiliar merchant (or charity or any other organization).

3. Get It In Writing

Get key details in writing and thoroughly check them out before agreeing to anything. Don't rely on a sales person's oral representations for a significant purchase or investment. Get as much written information as possible, including a contract, specifying cost information and your consumer rights. If a marketer refuses to supply written information or employs high-pressure sales tactics to get you to act fast, take that as your cue to dismiss the call or attempt for a transaction.

4. Beware of "Deals" Requiring Money Up-Front

"Congratulations, you've won a free vacation!" "Get rich quick—at no risk!" "We'll fix your credit problems—fast." These are common slogans that fraudulent companies and individuals use to lure in their fast income from their consumer prey. They're likely to be schemes to trick you into sending money or providing bank account information in exchange for promises of goods or services that will never be delivered. Be skeptical of any offer that's "free" or otherwise hard to believe and that, as a precondition, requires you to pay money (perhaps for a supposed "fee" or "tax").

5. Review Bills and Mail ASAP

It is important to always review credit card bills and bank statements for any errors or for any purchases you didn’t make or an unauthorized withdrawal from your checking account. If you notice a problem, contact your financial institution immediately. While federal and state laws limit your losses if you're victimized by a financial fraud, sometimes your maximum liability depends on how quickly you report the problem (generally you are allowed to report an error within 60 days of the event taking place). Also make sure you get your statement every month. If no statement arrives, that could be a sign that an identity thief has changed your mailing address for purposes of committing fraud in your name but from another location. As for personal mail, make sure to retrieve it everyday, as your mail may include checks, credit card applications, bank statements and other items of value to a thief.

Try to send and receive mail using locked mailboxes or otherwise secure locations. If you're going to be away on vacation or some other travel, have your mail held at the post office or picked up by a neighbor. If you're expecting a check, a credit card or bank account information and it doesn't arrive in a reasonable period, notify the sender. As for outgoing mail containing a check or other personal financial information, put it in a blue Postal Service mailbox, hand it to a mail carrier or take it to the post office.

Currently, there’s an average of 6,000 people leaving their jobs each month, whether due to quitting or due to layoffs, with the latter being the predominant problem around the nation. With so many industries and companies participating in large layoffs and overall company restructurings as if it were a fad, so many people are feeling the intensity of the insecurity of their jobs.  

While you may not have control over your job as to whether you’ll have one tomorrow or in a year, you can have some control over your own security of your situation. It is important to maintain a strong emergency fund. It is suggested that any emergency fund (untouched until needed) should contain the minimum worth of three to six months of financial need. However, the bigger you can build a financial emergency fund, in case of any type of emergency (whether job loss or what have you), it is important to build up the fund as much as possible and to never touch the account until necessary.

As a last resort, consider opening up a home-equity line of credit or apply for a low-rate credit card that you hope you will never have to use. It’s a lot harder to do either of those things if you're already unemployed, so do it now, but only with the intention to use at a later time when necessary.  Do not utilize the “emergency” credit until you need it, if you ever need it.  

In regards to credit, make sure that you are not only making your minimal monthly payments on your credit cards and other debt, but if possible, pay off as much of your debt as possible now. The less debt you have when an emergency arises (such as a job layoff for you or your spouse), the less you’ll have to worry about with credit companies later.

Whether or not your job is secure, make sure to know your company’s policies in regards to health insurance and other benefits. By law, it is required that your company must keep you on its health plan for 18 months after a layoff, although you may have to pay the entire premium. It is also important to inquire to your spouse’s company in regards to joining your spouse in their insurance plan. Many employers consider a spousal layoff to be a life-status event (which means you can switch to their plan immediately), it's not a given and some will let you change plans only during open-enrollment periods.

It is important to prepare yourself in the current moment for an emergency in the future. Do not put off saving money or paying off your debt until a later time. The more you can do now to secure your financial status, the better off you will be in case of a financial emergency in the future. 

With a growing number of people switching from landlines to cell phones, or both, it is important to weigh the high costs of your telephone bills. 

With so many cell phone plans, it is very possible to relieve yourself of a landline and extra bills.  If you opt not to have a cell phone plan and remain with a landline service, it is important to consider the various types of plans.

Landline Phone Services

It is important to review your phone bills for the previous three months to see what local, local toll, long distance, and international calls you normally make. Call several phone companies, including wireless companies, to find an inexpensive calling plan that meets your needs.

If you make very few toll or long distance calls, avoid calling plans with monthly fees or minimums. If your current plan involves options you do not use, readjust your plan and rid yourself of additional fees for services you don’t use or need. Each option you drop could save you $40 or more each year.

For international calls, it may be cheaper just to use international calling cards. Compare per minute rates and surcharges for different prepaid phone cards and calling card plans to find the one that saves you the most money. Generally, the more minutes you buy on calling cards, the more you will save on per minute rates (such as you will save a lot of money when you buy 1,000 minute international calling card versus buying a 200 minute international calling card). 

If you have a long-distance calling plan with your landline service, dial your long distance calls directly. Using an operator to place the call can cost you up to $10 extra.

Wireless Phone Services

If you use a wireless phone, make sure your wireless calling plan covers the calls you typically make. It is common now for most services to include national rates/plans, allowing for free long distance calls.  It is crucial to understand your wireless plan with its promotions, peak calling periods, area coverage and roaming, and long distance requirements to avoid paying too much.

Cell phones services typically offer free nights and weekends calling plans. This allows you to save a lot of money if you have the ability to choose when you make calls. As well, there are plans that allow specific amount of minutes and plans that may be free calls if you have specified numbers to call/receive calls.  With so many options for cell phones, the prices are becoming more affordable for everyone with low monthly rates and with the ability to pick and choose tons of options that best suit you and your calling needs/desires.

It is important with any phone plan to compare prices and plans and pick the one(s) that best suit you and your needs. Be careful of plans that require two-year contracts or of plans that aren’t guaranteed to stay the same. As well, be careful with the type of cell phone you buy – most plans offer promotions for specific cell phones, allowing them to either be free or for under $50.  If you need to buy a phone, make sure you compare prices again and buy a phone that is useful to you. Do not buy a Blackberry for $350 if you only need a basic Motorola or Nokia for $70, or can buy a used cell phone or use an old one from a family member or friend. 

If you do opt for a cell phone plan, for whatever type of calling need, you may be better off with wireless phones than with landlines included at all. It may save you tons of money to rid yourself of landline services in the new era of cell phones. 

There is a major difference between negotiating your debt with a financial advisor/counselor and filing for bankruptcy.  Filing for bankruptcy must always remain a last resort and be considered thoroughly before initiated. These are very similar acts in the respect that they help you get out of great debt.  However, there are many differences to filing for bankruptcy versus negotiating your debt with a credit counselor.  

Negotiating with a Debt Counselor

You should initially attempt to negotiate your debt with a counselor first and foremost. If that fails, then consider bankruptcy.  As for negotiating with a credit counselor, you are in entire control of your finances and debt, such as how quickly and how much debt you rid yourself of. Your matters will be private with a credit counselor.

Negative items can remain on your credit report for up to seven years, although you can be back on track with credit options in as little as a year, depending on ability to pay reduced settlements. As for the remaining balance of your debt, you may be able to settle up to an average of 30% to 50% of the debt balance. 

Negotiating any amount of debt with a credit counselor is the best decision and action to make. From there, if you and your counselor feel filing for bankruptcy may be the best thing for you and your financial situation, then consider the risks and impacts of filing for bankruptcy.

Bankruptcy

Bankruptcy is a public matter and takes an average of five years to be completed. As well, once you go to the court, you lose all control of your financial problems and all decisions are made by the court.  At the same time though, the court can protect you from lawsuits. If you were to file for Chapter 7 bankruptcy, you will first need to participate in a court approved credit counseling program for six months prior before you can even file your case.

Bankruptcy does not only take a long time to initiate and then complete, but it will also follow you for many years after. Bankruptcy remains on your credit for ten years, and it may effect you even longer for certain employment and loan qualifications.

As for the overall remaining balance of your debt, bankruptcy will allow creditors to see 25% to 50% of original balances over a five year period. Dealing with debt is an expensive issue, especially when you take on filing for bankruptcy. You should expect to pay around $1,500.00 for legal fees and court costs, with additional costs for an attorney that specializes in bankruptcy. You should only accept an attorney that initially offers free consultations.

It is important to know and understand your checking account – as it is not just a place to store and receive your money as you wish.  A checking account is part of your bank and it should work for you, not the opposite.

Look into banks that offer free checking accounts; these may be particular to students.  Make sure to know the policies and abide by them. Watch out for fees that you may be charged when you have too many ATM withdrawals, too many checks written, or use a funds transfer. As well, it is definitely helpful to have a checking account that you can access anytime (via online an online account and with many ATM machines in any and all areas you made need them). Free online banking, bill pay and management, without attached fees, are not uncommon – it is necessary among any checking account. 

Most checking accounts that work for you may offer free checks that the bank offers in the maximum amount they allow, such as 50 or 100 checks.  Take the initial free checks and do not order any (especially for a fee, until you need them down the line). If you need more, you  can simply go online and order more, but leftover checks are more typical than not, especially with online bill pay options becoming more commonplace. Extra checks become nothing more than wasted paper and wasted dollars.

It is important to keep track of your bank/checking accounts all of the time.  It can be costly not to keep your financial records in place and accurately accounted for.  All banks will charge you some type of fee for overdraft fees. Your debit card can easily get you into the red if you don’t know what’s in your checking account. Make sure to stick to ATM’s that belong to your bank. Banks tend to charge their own additional fees for withdrawing money from other bank’s ATM machines, plus the ATM fees when you withdraw money, causing you to lose between $2 and $5 for each withdrawal unless it is within your own bank. 

As well, checking accounts and savings account can work together, for a small or no fee, that offer assistance in transfer funds if you accidentally overdraft one or the other. There may be a fee that is charged, but much less if you are signed up for the overdraft transfer assistance program. 

College tuition is rising – a lot.  Each year, college tuition is rising an average of about 6%, or about $700, for public universities.  However, despite rising tuition, financial aid programs have been reducing the amount of money they are distributing to students in need.  For example, Pell grants, the nation’s biggest need-based financial-aid program, reduced financial aid by an average of $120 per student. The nation's saved taxpayers $900 million by trimming its average award to $2,474. Colleges also reduced the percentage of financial aid they dedicated solely to needy students and increased the percentage for scholarships for students with good grades or test scores, the College Board reported.

Not only do the rising costs of college outpace financial aid, but also wages and inflation rates. The sticker price for an academic year at a typical public university is $16,400: $5,836 for tuition and fees, almost $7,000 for room and board, and an additional $3,500 or so for books, travel, and entertainment, the College Board estimated. About half of students get scholarships or tax breaks to reduce their out-of-pocket costs, however, bringing the average net price paid to about $13,000.

It is suggested that if the prices of college keep rising as they are, students who don't receive any grants will most likely pay more than $115,000 to reach graduation day. Those who do receive scholarships or other assistance (which are of a decreasing number) will most likely pay about $87,000. Thirty years ago, when the total sticker price of a year at a public university ran less than $3,000 and students took less time to graduate, the total cost of a degree was closer to $12,000.

The best bet for finding affordable higher education may be found in local community colleges and two-year schools.  In California and other such states with high numbers of community colleges, community college tuition actually dropped. On average, tuition at the nation's commuter schools rose an average of only 4.1% this year, to $2,300. That means even students who don't receive any financial aid but live at home and attend a community college could finish their freshman and sophomore years for as little as $8,000, including textbooks and transportation to and from classes, estimated the College Board.

The state protects consumers from old debts known as "time-barred" debts by applying a statute of limitations typically between 3 and 10 years, depending on the state. Federal law protects consumers from being sued by creditors after the statute of limitations expires under the Fair Debt Collection Practices Act (FDCPA). While these debt collectors can still attempt to collect what you owe, they cannot threaten to sue you because the lawsuit would be immediately dismissed as "time-barred" debt. You can stop debt collectors from contacting you at all about time-barred debt by simply sending them a letter telling them to stop contacting you. Once they receive this letter, they are not allowed to contact you again except to say there will be no more further contact or to let you know they intend to take some specific action.

Often times these time-barred debts are purchased by scavenger debt collectors who buy uncollectible, written-off, time-barred debt hoping to pressure you into paying it back even though it could be years expired. They usually call themselves litigation firms to scare people and use very aggressive collection techniques that often violate the provisions of the FDCPA. It is important to remember that you can take two simple steps to prevent these problems: (1) determine if your debt is time-barred, and if so, (2) write them a letter telling them not to contact you anymore. Any other word from them afterwards is now illegal.

Property taxes are sometimes put on the backburner as many home values are over-assessed and could afford to pay less than they do now. If you want to reduce your property taxes, you can simply contest the assessment of your home value. Suprisingly, less than half of all homeowners do this despite the fact that it is a legal and fairly easy process. Moreover, statistics show that most homeowners who do appeal succeed in getting their property taxes reduced. It is not uncommon for homeowners to save anywhere between $100 in smaller homes to $1,000 in larger houses.

You can get started on the process by garthering evidence that your property is overvalued by the taxing authority. If your local district appraiser has a website, you mgith be able to research the property values of your neighbor's homes. If not, you may have to visit the district appraiser in person. If you find that your house has a higher value than that of your neighbor's, check into why this is the case. Similar houses in size should have relatively similar assessed values. Also look into whether homes have sold for less than their appraised value in your neighborhood. If so, you could be entitled to a lower appraisal value. Any of these factors can be used to make an easy argument to get your bills reduced - why not try it today?

Whether it be the fact that retirement is getting far more expensive or that healthcare costs are rising, senior citizens are suffering from greater credit card debt than before. The National Consumer Law Center reported that the average credit card debt for consumers between 65 and 69 years old now totals almost $6,000.  The report states that nearly one-third of retirees describe credit card debt as a "hardship."

It is important that senior citizens learn the current processes of credit cards and of their finances. It is crucial for them to pay special attention to the Schumer Box provided with each credit card application, which includes information such as the card's default Annual Percentage Rate, credit limit, and late fees.

As well, it may be a good idea to consider hiring a financial advisor to help plan for your retirement. Only use a fee-only financial planner, who you are able to pay by the hour, or get the financial planner to approve the plan you create on your own.  Your plan will determine factors such as the age at which you can retire.  It also must contain a budget for living within your means, allowing you to figure out how much discretionary income you will be left with after paying for expenses. It is important to account for additional, and greater, expenses to come in the future with age and time – such as health costs.

Last, it is a good idea to consider postponing social security as much as possible for older Americans. Credit card debt, and other forms of debt, is largely due to seniors' growing expenses while they experience fixed incomes.  By delaying the start of Social Security for as long as they can, seniors will get an increased monthly payment when they do begin the program.  It may be necessary to work a few more years to cause for this delay, but more years of work will allow for the assets to continue to grow.

This tax season, the average federal tax refund that taxpayers will receive is $2,548.  That’s $2500 of money you have to choose to use it wisely.  It is not extra money that you get as a gift from the government; it is your money you’ve had to hide away all year.  Well, it’s back, and it’s yours – not to waste!

There are a few different things that would be best put to use with your extra earnings. For starters, consider your overall financial status – do you owe a lot of debt, or are you interest in making some wise investments?

If you owe debt, the best practice would be to put your money into paying off as much of your [credit card] debt as possible before considering anything else. Reducing or eliminating your credit card debt sooner than try to make money off of investments will save you the most money in the end.  

From there, if you have extra money or do not have debt to pay off, consider investing in an IRA, a 529 fund (tax-deductible college savings fund), or a CD. Currently, CD’s are averaging 5.4% interest rate, which is about double the rate of inflation.  Whether you have a Roth or a traditional IRA, you're allowed to make up to a $4,000 contribution ($5,000 if you're 50 or older) for tax year 2006 through April 17 this year. Or, if you can't make that deadline, you can make your 2007 contribution with it.

If you don’t want to make any investments at the moment and don’t have any debt to pay off, considering simply putting the money into your current emergency savings fund.  The best place to house your emergency fund is through a high-yield savings account. High-yield savings accounts work slightly different than money market accounts in that they typically don't offer check-writing capabilities, just as they don't limit your number of transactions as money market accounts can.
 
If you want to put your refund to use in more than one way, the IRS is now offering a split-refund option, which lets you designate up to three accounts at financial institutions into which you want the IRS to direct deposit portions of your refund.

Many people are aware the the market for subprime mortgages has essentially collapsed due to an increasing number of defaults by those who have adjustable rate (ARM) mortgages with poor credit, but what does all of this mean for the average person? Unfortunately, the consequences of this collapse may be felt by individuals in more than one way. First of all, several companies that deal in subprime mortgages are publicly traded and experienced sharp declines. This, combined with other concerns, caused a strong sell off in the stock market a few days ago that may have alarmed some of those holding mutual funds or other retirement funds. Secondly, the collapse is expected to expand into the larger home market, which may cause housing values to fall further this year. However, many economists believe that the US will be able to avoid a recession and even a significant rise in unemployment.

The reason so many people are concerned is because when housing values decline, people are unable to borrow as much against the home. This leads to decreased consumer spending which eventually leads to a slower economy. The subprime market collapsed because when these housing values decreased and people were unable to loan as much, they defaulted on other payments and were ultimately unable to pay their bills. Consequently, they defaulted on their mortgages. Many people also expect the government to step in and institute new credit rules that are more strict than the current set of rules that contributed to the collapse. While the effects of all of this are not yet realized, it is definitely an important situation for all homeowners to track - especially those with poor credit and subprime ARM mortgages.

The best way to protect yourself from overnight hikes in your credit card’s interest rate is to, first and foremost, avoid credit cards with the universal default clause. Not all of credit cards practice this clause, only about 40%, so be sure to look carefully into your credit card’s fine lines and policies.

If your credit card does practice the universal default clause, be sure to check into your current credit card policies. If you are unsure of anything in relation to the policies of your card(s), do not hesitate to contact your credit card issuer to verify the facts. If you are currently using a credit card with the clause, consider transferring your balance of that card to one of your cards that doesn't practice the clause. However, do not rush to cancel the card altogether, because it could have a negative effect on your credit score.

The easiest way to avoid higher interest rates with a current universal default clause credit card is to simply pay your bills on time – all of your bills (even those not part of your credit card).  If you are struggling to pay your bills on time, such as car loan and mortgage payments, contact your lender to try to create a manageable payment plan.
 
Currently, there are amendments to the Truth in Lending Act that, if passed, would prohibit many unfair practices within the credit card industry, including the universal default clause. Until there is more justice among the practices of credit card companies, it is up to you to maintain a good record with your bills by paying them on time and understanding your credit cards and credit score. 

We all know that credit card companies are out to get as much money as they can from us, where late fees, over-limit fees, and transfer fees are just a few of their tricks. It is also possible that not only do you have to pay these additional fees, but it is possible and legal that the credit card company may raise your interest rate - overnight.  Surprisingly, they can raise your interest rate if you've made a late payment on any of your other cards, including those issued by other companies.

As for late payments on car loans, mortgages, and even phone bills, the numbers are even more astounding. If your credit card issuer is one of the 40% of companies that partake in raising interest rates, they may raise your interest rate up to 30% or more.  And it’s entirely legal. If you look ever so closely within the fine print of your credit card agreement, the universal default clause explains it all.

A universal default clause states that a creditor reserves the right to penalize you with an increased interest rate if you're late, whether to them or whether you’re in default of a payment to any other creditor. The universal default clause is justified in part due to the fact that if you pay any of your creditors late, you pose a greater credit risk and are less likely to pay your debt.

Your creditors also have the right to routinely monitor your credit file. So a creditor with a universal default clause will be watching -- and waiting. If your credit card is a carrier to the universal default clause, such as a specific Visa card you have, any late payment  (whether it's on your utility bill, home equity loan, or Macy's credit card)  acts as a "default trigger" allowing the bank that issued the Visa card to double or even triple your interest rate. At the end of all of your worries, your credit score will also be hurt.

The top triggers to watch for to protect your current interest rate from dramatically rising are a decline in your credit score, a late mortgage payment, and a late car loan payment. Under the universal default clause, your interest rates can also be increased for several other reasons, including exceeding your credit limit, bouncing a check, having too much debt, having too much credit, getting a new credit card, applying for a car loan, and applying for a mortgage loan.

CD’s (Certificates of Deposit) are a way for you to make some money while doing nothing. A CD is very much like a savings account where you can earn money by earning interest with money that you set aside to sit.  CD’s generally have a higher APY (Annual Percentage Yield) than normal savings accounts. As well, CD’s are easy to get. All it takes is a few minutes and a quick form to fill out at the bank of your choice. Your bank, in turn, pays you money through interest for letting them borrow your money. They can use your money while it sits in their bank to either make their own investments or to lend out to other customers. When your time comes for the CD to expire, you have the choice to either take it out (with accrued interest for your own benefit) or you can reinvest it again to continue to earn more money.

When you buy a CD, the bank promises to pay you a fixed rate of interest for a given term. In other words, they promise to pay you 5% for one year. After the year is over (at maturity), you decide what to do with your cash. CD’s with longer maturities (time periods) pay higher rates than those with shorter maturities, due to the fact that you’re promising to leave the money with the bank for more time. It is important to remember that the general outcome of the economy influences the CD interest rates, just as each financial institution offers different interest rates for CD’s and you must always shop around to compare rates.  

When your CD matures (maturity is the date your CD is set to expire), you can take your cash and run with it, or you can reinvest it again. When the CD maturity date arrives, you generally have 10 to 15 days to decide what to do with your next step in regards to your money. If you do not inform the bank of what to do with your money, they may automatically reinvest it in another CD. It is important to know the policies of your bank and CD.

If you do choose to reinvest in another CD, the bank can “renew” your old CD with the previous terms. However, not all terms of renewal may remain the same as CD interest rate may have changed since you first bought the CD.

CD’s are the safest form of investment, free of risk. 

It should be considered a treat to go out to eat. Each person in each place will have different preferences for going out to eat: how expensive the restaurants they prefer are, how often they go out to eat, and if they even have a set budget for their dining-out habits.
 
The best advice to give in regards to dining out is to set some ground rules, varied upon each person. Set a weekly limit to how often you go out. It is easiest to set specific days to dine out (such as Saturday nights, Tuesday lunches, etc.). If you have a regular routine to follow, it will be less likely to break the routines and go out more than planned for. 

Budgeting your costs is also crucial to dining out.  Go with a set amount of money, preferably cash, so you do not overspend while caught in the moment of dining out. If there are two of you on a date, or if there are five of you in afamily, set a specific amount (whether per person or for the collective group) and make sure you do not exceed that amount during the meal.

Search out restaurants that offer daily specials (such as lunch specials or early bird dinner specials, etc.). Also search for coupons to various restaurants. Coupons such as “buy one entree, get one free” are always a good sell; these coupons can be found in local newspapers and in coupon books.

When you are not treating yourself by dining out, it is a good idea to pack a lunch for work and to cook a good and inexpensive home-cooked meal for the evenings.  Maintaining a set schedule and limit for how often you dine out and how much you spend will save you plenty in the long run. 

Car repairs can be brutally expensive at times, especially when those times come on suddenly. To best prepare yourself for the high costs of car repairs, it is important to maintain your car well on a regular basis. Regular check-up’s are the best trick to maintaining your car and saving money on costly repairs down the road.  Whether you bring your car in for a regular check-up every three or six months, it is good to know that it is in good condition/care than to find out while you are stranded on the side of a highway with a broken transmission.

Yes, you may have to pay to have the car continuously checked on and cared for, but the cost will be far less than if you do not maintain it and wait for it to act out against your neglect.

Sudden, unexpected repairs will cost far more than catching them before hand.  Preventive care is the best source of medicine, even for automobiles. Plus, you’ll kick yourself just after seeing the towing bill alone, none the less the bill for an unknown repair shop in the middle of nowhere. 

Consumers lose billions of dollars each year on unneeded or poorly done car repairs. Do your best to avoid being part of this statistic. With any type of auto repair, make sure you find a certified and well-established mechanic and repair shop. It is best to keep going back to the same shop and mechanic over time once you have found one that works well for you and your car. The better you trust the mechanic and know that they know your car, the better the repairs will continue to be.  As well, always communicate the costs of repairs prior to settling for just any pricey repair. 

According to the US Census Bureau, about 30% of the US population currently rents some form of housing. With the market being so unstable with buying and selling houses, it only makes sense to rent until you know for sure what you want – and where.  In general, renters, especially apartment dwellers, tend to be less affluent than people who own houses. For this very reason, it is a good idea to know the area and the renting market of where you are to rent a house, apartment, or condo.

The rental market in the US is not as strong as it used to be, but it’s slowly making it’s way back. The demand for apartments drops with each passing month and year, but still at a slow pace. Vacancy rates only recently came back to the long-term national average of about 5%. Exceptionally strong real estate sales are also a problem in which prohibits the rental market from making a strong come-back. 

The rental market does, however, vary greatly from city to city, and between neighborhoods.

New York topped the list of the most expensive rental market in the US, with an average price of more than $26 per square foot each year for high-end apartments, in the second quarter of 2005. That's almost twice the national average of $14.53 per square foot. The more space you have, the more interested buyers you have, therefore allowing for a greater asking price. The access of land, housing, and jobs make up such high demands and prices for renters within the nation.

Top Five Most Expensive Rental Markets in the US

1. New York, New York
2. Boston, Massachusetts
3. Honolulu, Hawaii
4. San Francisco, California
5. Northern New Jersey

Wind and hail are the most important issues to considering insurance for a home.  Floods, earthquakes and hurricanes are not the reigning factors to home insurance, believe it or not. According to the National Association of Insurance Commissioners, home insurance is especially particular and more costly to homes made of wood frames and that are located in high-density areas or regions that lack nearby construction materials. These factors, combined with heavy winds and hail, play the largest roles for insurance carriers as they calculate their risks and price their policies. 

The average cost to insure a U.S. home in 2003 was $668 a year. Idaho takes the lowest average for home insurance within the states, averaging $433 per year, while Texas is the most expensive with home insurance averaging $1,328 per year.

Following behind the course of wind and hail, homes in largely populated cities and regions, and states that are hurricane and earthquake-prone (along with other large natural disasters) make the top ten most expensive states for home insurance.

The Top Ten Most Expensive States for Home Insurance (Average Annual Prices)

1. Texas; $1,328
2. Louisiana; $975
3. Oklahoma; $925
4. Florida; $810
5. District of Columbia $806
6. Mississippi; $793
7. Kansas; $772
8. Colorado; $762
9. California; $753
10. Minnesota; 733

“Maxed Out” is a new documentary by James Scurlock, which has emotions soaring from both the consumers and the bankers. The documentary takes a topic of debt and puts it into a powerful insight for all to see and hear.  

As debt takes many forms, angles and degrees, it is a growing problem that faces people of all backgrounds. Scurlock’s documentary runs with the stories of all genres of people faced with debt in their lives, touching not on the cure for debt, but on the poison of debt and how it affects people’s lives with such command.

There are stories from people on the receiving end of debt, as well as stories from those who furnish the debt and troubles.  “Maxed Out” covers a wide array of subjects and aspects of debt, from national and personal debts to credit bureaus. The narrative focuses on debt from aspects of personal fault to the faulty financial institutions that prey on those who are young and/or naïve.  It does not, however, advise a cure for the ailments of debt, it just simply states what is wrong in our capitalist society and of those who have fallen behind.

As of March 5, there was a bill put into legislation that would make it harder for illegal immigrants to make financial transactions. The Photo Identification Security Act would require all US financial institutions to accept only secure forms of identification, making it harder and illegal, for illegal immigrants to receive federal benefits and to make financial transactions of any sort. In order to open a bank account, the bill would require either a foreign or U.S. passport, a Citizenship and Immigration Services photo ID card, or a Social Security card in conjunction with a state or federal ID.

However, this has not been the case as Wells Fargo evidence. Over the last six years, Wells Fargo has expanded their credit card service by over 75,000 people, with a large new addition of foreigners who were granted banking rights with the help of consular identification cards for Mexico, Argentina, and Guatemala, and with hopes to also soon accept consular ID’s from Colombia.

The legislation came about after both Wells Fargo and Bank of America had expressed recent interest in expanding their [pilot] credit card programs to larger Latino populations throughout the nation.

Microcredit is the extension of very small loans to the unemployed, to poor entrepreneurs and to others living in poverty who are not bankable. These individuals lack collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimum qualifications to gain access to traditional credit. Microcredit is a part of microfinance, which is the provision of financial services to the very poor; apart from loans, it includes savings, microinsurance and other financial innovations.

The History Behind Microcredit
Microcredit was a financial innovation that came about in the 1970’s, with some traits of theory back to the mid-1800’s and after the end of WWII. The practice took off in developing countries, and is best promoted and practice in such countries to this day. The practice of microcredit has successfully enabled extremely impoverished people to engage in self-employment projects that allow them to generate an income and, in many cases, begin to build wealth and exit poverty. There has been a great amount of success in the practices of microcredit, leading many in the traditional banking industry to realize that these microcredit borrowers should more correctly be categorized as pre-bankable. Microcredit is increasingly gaining credibility in the mainstream finance industry and many traditional large finance organizations are contemplating microcredit projects as a source of future growth.

Microcredit was originally given with bias towards women because it was thought that they would help the home and families more than men, living/working on the individual side of life. Past experiences had proven that women are a good credit risk, and that women invest their income toward the well being of their families. This is a prime reason that some microcredit organizations still only administer loans to women.  

The Benefits of Microcredit
Microcredit loans allow for people, that would otherwise be incapable, to begin their own small business or to help save up money for the future. Microfinancing organizations, in short, give small loans (some as small as $100) to people in need, allowing them to use it to ether build their own small business, pay off past debt, and/or start saving money for the future. Microcredit loans have also led the majority of borrowers to secure steady jobs thereafter, either creating jobs or stabilizing current ones. With microcredit organizations, there is an incredible repayment rate, with a world average of over 95%.       

Microcredit Facts
Microcredit loans are usually collateral free, with an average maturity of 50 weeks with repayment in weekly installments. As well, borrowers have full freedom to choose the activities that they wish to be financed. Loans do not need to be spent only on investment; spending for consumption is equally acceptable.

Higher spending and greater debt may cause for a slow-down in the upcoming months. Or maybe not. The Federal Reserve reported that consumer credit rose at a 3.2 % annual rate in January, up from December's 2.5% increase, primarily due to an increase in auto loans. Overall, the increased borrowing by US consumers pushed the total consumer debt up by $6.4 billion to a record $2.41 trillion in January.  

The gain was expected by analysts. Analysts are predicting that debt levels will grow more slowly this year as consumers try to adjust their personal finances due to record levels of debt. Auto loans took the winning prize, as they created a large growth in consumer borrowing as they rose 4.4% this January, sharply up from December’s 2.9%.  
However, credit cards have actually slowed down in borrowing rates for January. January’s rates were rising at a 1.1% rate, down from a 1.9% increase in December. Credit card debt had surged ahead at a 14.7% rate in November, primarily due to the largest consumer holiday in the month to come. 

Most credit card companies can’t wait until their customers miss a payment or pay late.  They also look forward to customer’s that exceed their credit limit.  These are some of many gateways that credit card companies look for in order to raise their interest rates and to charge additional fees – large fees – to their individual customers.  However, there are a few credit card companies that are changing their ways to better cater to customers.

Citigroup has eliminated “anytime, any reason” fees and interest rate changes. Citigroup will now only change their interest rates and fees when a customer’s card has expired (every two years) or if the card holder pays late, exceeds the credit limit, or bounces a check.

Chase has also announced a similar practice to be enforced.  Chase has put an end to using their two-cycle billing system for determining a customer's unpaid balance, which many customers never understood because they would still be charged at times even when they paid their bill in full.  The company is now using the more common approach of their customer’s average daily balance. Chase hopes that the elimination of the billing practice will benefit customers by reducing finance charges.

Capitol One has also jumped on the band wagon for changes among credit card policies. Capitol One’s new approach is to simply put their credit terms in “plain English” so their customers do not get caught with problems because of a not reading between the lines or misreading the fine print. 

This is not to say that all credit card companies have changed their ways and will better address their customers. However, it is becoming a new era among credit card users – their credit card companies should be working for them, not the other way around. Credit card owners have a right in the cards they use. Credit card users have a right to the card(s) they use, and with that, their choices should work for them. It is the scenario of the government versus the people: the government would not run if it were not for the people making the ultimate choices and decisions. The government in this case is the card companies, and the people are its customers.  The government and the credit card companies both work for the people, their customers.

If you are having problems with your credit card company, do not hesitate to talk to them about it. If your credit card has recently changed the terms of your credit agreement in a way you don't appreciate, make a complaint. Maybe the company has added an annual fee, increased your late fees, or shortened your grace period. In some cases, the credit card issuer will change the terms back, just as sometimes they won’t – but it doesn’t hurt to try.  You can also ask, without rhyme or reason, for better interest rates, especially if you are caught in debt and carrying a current balance. Shop around for the best deal(s) with credit cards and what works the best with you. Just as any major company or store, credit card companies may try to compete with other offers you may find to keep you as their customer. Make sure you use other offers and deals in your requests for changes. If you fail to change your credit card company’s individual policyfor you, you can always bring your business elsewhere.

Many people think that the main ingredient for greater salaries and overall better jobs is to have a college degree.  What people are now realizing is that to make more money, they have to pay more money for education.  Student loans have been on the rise over the last decade. College students and alumni are now dealing with an average of over $19,000 in loans (more than doubled from ten years ago).  For those that are continuing onto higher levels of education after undergrad, they will be seeing an average of over $74,000 in loans.

Not only are graduates forced to then deal with paying back these large numbers right after they graduate (some may have a six month grace period, if they’re lucky), but they also have to deal with accrued interest.
 
Many people cannot overcome their debt for a few good years (or many years, for that matter).  For some, they may only find a job that offers entry-level salaries that are not enough to cover the cost of rent, food and student loan payments. As well, student loans may be a burden under many if a student or graduate suffers from a job layoff or an illness, allowing payments to double, triple, or quadruple due to late fees, penalties and accrued interest.

Many college graduates believe that they made a huge mistake by taking out student loans, or as many or as much, as they did.  To relieve the anxiety and guilt of student loans, it is important to talk it over with your family and even a financial advisor before, or during, making the big step of borrowing lots of money from strangers. Yes, the outcome proves to be better paying jobs in the future, but can you afford the costs?  If you do need student loans, make sure you do not request more than you need. It is also crucial to looking into your college’s financial aid programs and other programs that offer financial assistance from the government.  Student loans should not be your first choice for money for college.  It should be your last resort.

401(k) Plans At-a-Glance
401(k) plans allow you the option of selecting the funds you choose to invest in, found in a list of funds provided by your company’s 401(k) plan.  You have total freedom in what to invest and how much to invest, as you have control ultimately over your own personalized 401(k) plan, offered through your employer. Your employee contribution will automatically be deducted from your pay check before taxes.
Depending on your employee, you are able to contribute up to a certain percentage of your pay into a 401k; in addition, some employers will even match a percentage of your contributions. Your contributions, along with any matched contributions, are then invested into your selected funds. These funds will grow without being taxed and can be withdrawn when you reach the age 59 ½.
By the time you reach the age 59 ½, you will be required to start paying income taxes on the money you withdraw from your 401(k).  There are ways you can withdraw your funds before reaching the age 59 ½, but these withdrawals usually require a penalty along with payment of taxes.
There are two groups of your 401(k)plan:

Defined Benefit Plan
A defined benefit plan is one in which the employer promises to pay a defined amount to retirees who meet certain eligibility criteria. A defined benefit plan usually links the benefit to the amount of service and is based on the final average salary. This is the best way to predict the monthly retirement income you may receive with this type of plan, just as you might also be given the choice of a lump-sum benefit at retirement.

Defined Contribution Plan
A defined contribution plan is one that defines the contributions that an employer can make or not make on the benefit that the employee will receive at retirement.  This is a plan that you cannot predict the final price outcome of your plans. If you choose to leave the company in which you have a 401(k) invested, you are likely to receive the proceeds in a current or deferred lump sum or annuity.

Companies are prohibited by law from tapping into the money in their 401k. However, if your company goes bankrupt and you have 401(k) money invested in their stock fund, you will most likely lose all of your money. 

To get the best results of your 401(k), make sure to monitor your money frequently. If your funds/stocks are declining, try to diversify your money and do not place it all in your company’s stock alone. It is a good idea to contribute the maximum tax-deferred amount to your 401k, if you are looking for a more risky challenge with possible greater rewards.

Allocating Your Money in Accordance to Time
According to Money magazine, the suggested allocations at three life stages are:

Aggressive--for those with 35 or more years until retirement
50% - large cap stocks
15% - mid cap stocks
15% - bonds
10% - small cap stocks
10% - international stocks

Moderate--for those with 20 years until retirement
35% - large cap stocks
35% - bonds
10% - mid cap stocks
10% - small cap stocks
10% - international stocks

Conservative--for those within 10 years of retirement
 40% - bonds
30% - large cap stocks
10% - mid cap stocks
10% - international stocks
10% - cash

When it comes down to the overall costs of monthly expenses, do not forget about one of the more pricey expenses –automobiles.  Whether you are paying for them through lease costs, gas, DMV fees, or insurance, cars are one of the largest expenses. 

When it is time to make the big decision to get a new or used car – how should you decide?  The price tag should not be the only numbers to look at.  There are three categories to a car: buy new, lease, or buy used. 

In short, buying a new car is the most expensive route to take. Insurance will be high, but the price tag is the worst in this scenario. The DMV fees and sales tax alone will be a lot of money out of your pocket right off the bat. DMV fees are very expensive for new cars in the beginning, but they will eventually level off after the first year. Gas may be the cheapest with new cars, as they are now designing them to be more fuel efficient, but the overall costs of paying for the price tag of a new car will be much greater for this route.  After a year, new car payments will settle and become more reasonable. If you plan on keeping a new car for a long time, it may be a good idea to think about investing in a new car if it best fits your lifestyle.  After the first year, the only payments will be for gas, maintenance and repairs, DMV fees, and insurance.

As for leasing a new car, the monthly lease payments don’t seem too bad, but over time they will add up with interest, coming just under or around the same as the price of buying a new car. With leased cars, insurance is generally more expensive than if you were to buy a new car, but still less than the insurance rates on used cars. However, leased cars generally have little or no down payment, as well as low monthly payments and lower sales tax compared to buying new cars. The largest concern for leasing a car is higher insurance and interest that will build over a few years. However, you are also limited to your mileage usage, and this may pose a problem for some.

Buying a used car greatly depends on your lifestyle and budget. Buying a used car will definitely save you money in the pocket (granted, you don’t buy a car that will end up in the repair shop the very next day).  Insurance prices will vary depending on the model, condition, and year of the car, and repairs may be more frequent and with higher costs each passing year on a used car. Insurance for used cars is generally more expensive than buying or leasing a new car, especially if you choose to waive theft and collision and stick just to liability coverage. Used cars are financed at higher rates, but due to a much smaller price tag, payments are made easier and in much shorter time.

To decide whether to buy a new or used car, it is important to figure out the best approach for your budget.  If you have the money to buy or lease a new car, the prices come high right off the bat, but will settle over time.  As for buying used cars, prices come much less in the beginning, but depending on the amount of time and energy you put into the car, prices will build over time.  The greatest factors are the amount of time you want to invest in the car, and the amount of monthly costs you are able to afford – insurance, repairs/maintenance, and monthly payments.

Stocks are equity investments.  In simple terms, stocks are found in the form of shares that you buy, granting you part ownership into a corporation. However, although you own stock and ownership in a company, you may still only be a small fragment among a corporation that may issue millions of shares. Ownership of a company is a very powerful thing, and very easy, too. By owning shares of stock in a company, you have the power each and every day to either hold on to your shares or to sell them.

Not only is it a fun game, but for the most part it generally works out for your own financial good. The best reason to buy stock is with the hopes that your shares will increase in value and you will be able to sell them in the future for a profit (whether it be a day, month, or even years later).  As well, stocks generate income in the form of dividends.  Some stocks may do one or the other, while some operate under both conditions.  

It is important to note that stocks can be very volatile. It is never guaranteed that your stocks will increase in value over time.  It is important to watch the market each day, particularly the stocks you have shares in or the stocks you are interested in getting involved with.  Learn the trends and patterns of your stocks, and know when and why they are increasing or decreasing in value.  It is up to you if, and when, you choose to sell your shares.  Stocks may change value rather quickly within a short frame; this is significant because stocks, in general, have historically provided stronger returns than other forms of securities.

In order to measure the return of a specific share/stock, it is important to know the exact amount of money you bought the stock with.  From there, you will calculate the total return by finding the difference from your original value, whether it has decreased or increased.  For example, suppose you bought a stock one year ago at $20 per share, which paid a $0.50 per share dividend, and now sells for $21.75. Your total return for the year would be 11.25%, calculated by adding the $1.75 per share increase in price and the $0.50 per share dividend and then dividing by the original purchase price ($21.75 – $20 = $1.75 + 0.50 = $2.25 ÷ $20 = 0.1125 or 11.25%). 

For those who live paycheck to paycheck, sometimes bills and other necessities involved with money cannot wait another week.  This creates for a rush to the local payday loan center.  Cash advance, or payday loan, centers allow us the opportunity to get money when we need it, even if it’s a week or two before our next paycheck.  The process is simple, almost too simple, creating a false security that you can borrow money and pay it when you have money again.  However, many don’t realize that payday loans are an extremely expensive way to borrow money.

 Payday loans are typically given in cash and secured by the borrower's post-dated check that includes the original loan principal and accrued interest. The maturity date usually coincides with the borrower's next payday. On the maturity date the lender processes the check traditionally or through electronic withdrawal from the borrower's checking account if the borrower does not first repay or service the loan in person. Before loaning you money through a payday loan, lenders will need proof that you have a regular income, a permanent address and an active bank account.
 
Payday loan centers are known for charging inflated "service charges" for the service of cashing a "payday advance" — effectively a short-term (no more than one or two weeks) loan for which charges may run 3-5% of the principal amount. There are many different fees and interest charges that are applied to the original amount of the loan, and this is the cause for such high expenses of borrowing from payday lenders. Payday lenders have even been called “loan sharks” for their high interest rate, typically 250% or higher when annualized. Payday lenders have also been criticized for specifically targeting the young and the poor.

Before you rush to the nearest payday loan center when you need money instantly, it is really important to consider all of the options and underlying consequences. Do you really need to take out a loan at this moment, or are you able to get by until your next paycheck?  If you need money immediately, try to make other arrangements.  Some employers allow their employees to cash in their vacation day.  Or, you could simply borrow money from your family and friends.

If you truly do not have any other options other than getting a payday loan, it is crucial that you only borrow an amount that you are completely certain you can payback (and by the date you agree to on the loan contract). Do not rush into any loans. It is important to inquire about all of the fees, charges and interest rates that apply to you, while also making sure that you understand the charges you will owe if you can't pay the loan back on time.

Last of all, do not put yourself more in debt by working with various payday/cash advance loan centers.  It is a terrible idea to borrow money from a loan center to pay back a loan from another center.  Just the same, if you are extending or "rolling over" the loan that you had with the same lender, you could find yourself in serious financial difficulty. The fees, charges and interest will add up quickly on these types of loans, which can put you into serious debt.