5 New Ways to Save Money on Your Christmas Spending

Image via WikipediaThe dreaded Christmas shopping season is fast approaching. Are you in danger of overspending like you did last year. Most Americans overspend and rack up large credit card bills. It's hard to break the bad habits of a lifetime, but this year will be different.

Breaking bad shopping habits is not impossible. I was terrible at shopping for Christmas gifts. I felt obligated to make a big present filled Christmas for my family. This led to over spending and large credit card balances arriving in January's credit card bill. The money I charge usually took till at least the summer time to pay back. This was an intolerable situation and I had to find ways to stop the madness. Below are just 5 ways that I made the break back to sanity. Maybe they can help you.

1. Cut back on the Gift Cards.
When shopping for that perfect gift for Christmas most people don't know what to get. So to end the shopping adventure they go to the gift card isle. It's so convenient to just get a restaurant or store gift card. But what amount do you purchase? You budget tells you that you can only afford a $10 card but you feel it may make you look cheap. So you go for the $20 or $25 card, which you think makes you look generous.

What you just did was bust your budget. This year skip the gift cards and do some actual shopping. You can't afford to give out $25 gift cards. Make a list with the name of the person and an amount of money you want to spend. You still have time to shop sales and stay on your budget. Don't give gifts not cards this year, you will save money and look like you actually care.

2. Spend cash not plastic.
All year you should of been saving for the Christmas shopping purchases. With this cash you will go shopping, you won't be using plastic. Not even your debit card. With plastic you have a greater chance to overspend. With cash it is very hard to overspend. Leave the cards at home so you won't be tempted. You will spend less and it will force you to hunt down better deals.

3. Have a Plan.
You are on a mission to hunt down that gift on your list, pay for it and get the heck out of the mall. No sightseeing or window shopping. You have your list, cash and a plan this year. Your not going to overspend again this year. You will be tempted by all the holiday decorations and music playing. But you can't let it happen. Remember you don't have to complete all your shopping at one time. It's better to break down your shopping into small missions that can be accomplished.

4. Make more purchases online.
The online shopping experience can make your purchases more economical because it's much easier to find the best deal. Websites like Fatwallet.com has forums where members take much pride in combing the Internet to find the best deals. Online you can get some new inspiration and find some great deals. For some, it eliminates impulse purchases, but for others it's to tempting. But if you are a savvy shopper, you can grab some good deals and stay out of the malls too.

5. Alternative gift giving.
The usual gift in a box will fulfill you Christmas obligation. But why not try something a little different this year. Instead why not give an experience. Get together with the whole family and plan a vacation. Your own family and extended family all plan on taking a little trip. You can rent a multi bedroom home at a lake or oceanside resort and split the bill. Make it a week together no TV or video games, just each other. Make a memory you will always cherish.

Giving experiences is a lasting gift that won't end up in the closet or the return counter. Do you remember what you received last year for Christmas, I know you don't remember. Most people don't because it was a meaningless gift. An experience won't break or get returned.

The holiday season is not about spending money or material gifts. It should be about celebrating Christmas and family. Don't get wrapped up in the material. Change the direction away from the usual and start some new traditions.

3 Banks Where Checking and Debit Cards Are Still Free

Lately who isn't  upset  about bank fees like few other personal finance issues in memory.

Bank of America's announcement of a $5 monthly fee for debit card transactions was the last straw for many who feel they're being nickel and dimed in a tough economy.

There's an increasing frustration that seemingly any banking activity may now incur an extra charge. PNC Bank, for example, docks some customers $2 to $3 if they call a representative to transfer money.

The fees are still going up at more banks. All told, 60 percent more bank accounts carry fees and balance requirements than a year ago, an August survey by Bankrate.com found.

It's up to consumers to tackle their own fees head on.

The new charges have at least accomplished one positive thing: serving as a virtual call to arms for consumers to take action by changing accounts, switching banks or otherwise trying to get around or reduce fees.

There are safe alternatives to your local banks online. Most have no monthy fee or debit card charges. They give free checks and reimburse your fees for using other banks ATM's.

Below are 3 online banks that I believe are at the top of the list.

1. EverBank

This was a late addition, but EverBank has perhaps the best offering right now with no fees, an interest bearing account, reimbursed ATM fees and they’ll even pay you $60 to switch to them!

• Monthly Account Fee: $0
• Debit Card Fee: $0
• Opening Deposit: $1,500 deposit to open
• Checks: free checks
• ATM Fees: zero ATM fees – if your balance is over $5,000 they will reimburse you the ATM fees from other banks.
• Interest: EverBank guarantees that you will earn interest that is in the top 5% of what all banks offer.
• Cashback Rewards on Debit Card: n/a

Official EverBank Site, FDIC-Insured, High-Yield CDs, Safely Secure Large Deposits, www.EverBank.com

Image via CrunchBase

2. PerkStreet Financial

PerkStreet Financial offers a no fee MasterCard debit card and checking account. With PerkStreet, online bill pay and banking and banking are free and there is:

• Monthly Account Fee: $0 monthly account fee if you have at least one debit card transaction.
• Debit Card Fee: $0
• Opening Deposit: A$25 deposit will get you started.
• Checks: free checks
• ATM fees: 37,000 ATM’s nationally that you can withdraw from without surcharge, otherwise $2 surcharge.
• Interest: no interest earned on your balance.
• Cashback Rewards on Debit Card: Perkstreet’s biggest appeal is that at a time when other banks are beginning to charge you for debit cards, they offer you cash back! If you maintain a $5,000 balance, you get an outstanding 2% cashback. If under $5,000, you’ll get 1%. There are also 5% cash back categories throughout the year with PerkStreet.

PerkStreet Financial^SM offers you the only unlimited 2% cash back debit card. Instead of creating more debt when you're shopping, you're creating more cash. So be Super Smart and sign up today.

Image via Wikipedia3. Ally Bank

I’m a big fan of Ally Bank because they don’t do business like other large, national banks. They create appealing products that don’t take advantage of their customers. Ally Bank Interest Checking offers:

• Monthly Account Fee: $0
• Debit Card Fee: $0
• Opening Deposit: $0 deposit to open
• Checks: free checks
• ATM Fees: zero ATM fees – they actually pay for fees charged by other banks!
• Interest: you earn interest on your balance.
• Cashback Rewards on Debit Card: n/a

Open an Interest Checking Account from Ally Bank today!


These big bank fee increases are the blow back for changing government regulations. Like always the consumer gets stuck with the bill when Washington trys to help us. Don't stand for the fee increases and send the big banks a message.

Are You Joining Bank Transfer Day on Nov. 5

Alright, who is fed up with their bank? The anger at banks these days is incredible high. Bank of America probably never could of realized just how much of an uproar its planned $5/month debit fee would cause. 

Other banks had already announced such fees, but the fees were smaller and were only introduced in select markets. It was Bank of America's announcement that was the last straw. People are mad and they are closing account and doing their banking elsewhere. One consumer, Kristen Christian, has decided to do something about it.

Christian launched the now viral Bank Transfer Day movement. On Nov. 5, Christian and her thousands of followers have vowed to close their accounts at big banks and transfer their money to credit unions, banking institutions known to provide more personalized customer service.

Bank Transfer Day has its very own Facebook page filled with information about the day and what you can do to help spread the message. The page already has more than 21,000 Likes.

So why did Christian decide to do more than simply close her own account?

Kristen Christian says, "I started this because I felt like many of you do. I was tired — tired of the fee increases, tired of not being able to access my money when I need to, tired of them using what little money I have to oppress my brothers & sisters. So I stood up. I've been shocked at how many people have stood up alongside me. 

With each person who RSVPs to this event, my heart swells. Me closing my account all on my lonesome wouldn't have made a difference to these fat cats. But each of YOU standing up with me ... they can't drown out the noise we'll make." Source: Facebook.

Join Christian on facebook at "Bank Transfer Day"

Money saving energy tax credits due to expire by year end

Image via WikipediaWe are only a few months away from the end of the year and money saving tax credits are soon expiring. These tax credits for energy-saving new windows, air conditioning, doors, water heaters, and insulation will soon end. Local contractors are seeing a last minute rush to get the upgrades done.

The reason your power bill will shrink. A new air conditioner is typically 30% more efficient than a 10-year-old model, and insulation can reduce air leakage by 20% to 30%. Adding insulation, replacing duct work, getting a central air cooling system and replacing water heaters — are the most cost-effective home improvements.

New windows can save homeowners up to $500 on energy costs a year while a new water heater will pay itself off in five years — not counting the tax breaks—according to calculations by the U.S. Environmental Protection Agency, Energy Star and home-improvement retailer Home Depot.

Insulating your home can save you about $220 a year and you could recoup your costs after 2.5 years.

Some of the energy-saving home improvements that are part of the tax-credit program are easy to do yourself, while other projects require professional installation.

Make sure your purchases qualify for the tax breaks, as not all Energy Star appliances are covered under the tax-credit program. Energy Star is a joint program of the U.S. Environmental Protection Agency and the Department of Energy that promotes energy efficiency.

And keep receipts for tax purposes. Keep the receipts for several years in case you get audited.

There are many Federal tax credits available for homeowners and business. Here is only a partial list.

Insulation

Credit: 10 percent of the cost, not including labor, up to $500

Requirements: Bulk insulation products such as batts, rolls and blow-in fibers may qualify.

Savings: Homeowners can save up to 10 percent on their total annual energy bill by sealing and insulating a home's outer walls, ceiling, windows, doors and floors.

Reflective metal and asphalt roofs

Credit: 10 percent of the cost, not including labor, up to $500

Requirements: Metal roofs with appropriate pigmented coatings and asphalt roofs with appropriate cooling granules and they also must meet ENERGY STAR requirements.

Savings: Homeowners could save about $200 with a highly reflective roof.

Windows, skylights and doors

Credit: 10 percent of the cost, not including labor, up to $500. Windows are capped at $200.

Requirements: Must be ENERGY STAR qualified.

Savings: Windows, for instance, can reduce energy bills by 7 percent to 24 percent.

Gas, oil, propane and electric heat pump water heaters

Credit: $300

Requirements: Gas, oil and propane water heaters must have a thermal efficiency of at least 90 percent or have an energy factor of at least 0.82. Electric heat pump water waters must have an energy factor of at least 2.

Savings: It could take an estimated five years or more to recoup costs for the upgrade, according to JEA, a municipal utility in Jacksonville.

HVAC systems

Credit: $300 for central air conditioning.

Requirements: A Seasonal Energy Efficiency Ratio of at least 16 for split systems and at least 14 for package systems or an Energy Efficiency Ratio of at least 13 for split systems and at least 12 for package systems.

Savings: One way to calculate savings is to use the AC rebate and calculator link at FPL.com/programs.

Credit: $50 for efficient fans or blower motors.

Requirements: Must use 2 percent or less of the furnace's total energy.

Credit: $150 for natural gas or propane furnace or a gas, propane, or oil hot water boiler

Requirements: An Annual Fuel Utilization Efficiency of at least 95.

Credit: $500 for air source heat pumps

Requirements: The energy efficiency rating varies depending on whether it's a split or package system.

Savings: An estimated $30 a year can be saved.

Other rebates and credits

There are plenty of other options for homeowners who want to cash in on tax credits and rebates and save money on their electricity bills. They include:

Federal loans of up to $25,000 for single-family homeowners who want to make energy-efficient improvements;

Federal tax credits covering 30 percent of the cost of geothermal heat pumps, and solar and wind energy systems;

Money for insulation and other energy-saving upgrades through low-income weatherization programs that is available by contacting community action agencies within county governments; and

Rebates for energy-efficiency improvements available through some cities and counties.
Check out the Database of State Incentives for Renewables & Efficiency for your state specific rebates and credits.http://www.dsireusa.org/

 Also the U.S. Department of Energy for a complete list of federal tax credits and incentives.    http://www.energysavers.gov/financial/70010.html

How To Move Your Checking Account In 7 Easy Steps

Image via Wikipedia
There is a lot of anger out there between banks and their customers these days. The announcement of increased ATM fees has put the public on the war path. People want to move their accounts to a bank that has free checking and no fees. It's going to be hard to find such a thing from now on.

Over the last few years the banking industry has just continued to keep the general public angry at them. These new fees and signs of even more fees is driving an even bigger wedge between the two. What other industry continues to work so hard to maintain such a low opinion of themselves.

Related Post Your Bank Fees Are Increasing - Here's Why

Over this last year and increasing the last two months credit unions have seen a 300 percent rise in new accounts being opened. People are leaving Bank of America and other banks also.

If your thinking about moving to another bank, double check with your present bank if you can change to an account that will not have any fees. Don't be in a hurry. Do your research into the new institution first.

Some resources that might prove helpful when looking for another bank include MyBankTracker.com, Bankrate.com, FindABetterBank.com and FindACreditUnion.com.

Moving Your Money to a New Checking Account. Steps to Make it Safe and Easy

1.Open your new bank account with a small deposit.

Why? Once you choose a bank or credit union, make sure to open a new account before taking any steps to close your old account. Deposit just enough to open the account and avoid any fees the bank may charge for maintaining a low balance.

2. Make a list of all the automatic payments and deposits that are scheduled to go in and out of your old account each month. See the chart below as an example.

Why? This is to help you organize and keep track of all of the automatic transfers that are tied to your old account, so that you can make sure there is enough money in the old account for all your payments to clear during the process of moving your money to your new account.

3. If you have direct deposit, ask your employer to reroute your paychecks to your new account. Ask what date the first deposit will occur and use this date to guide you through Step 4.

Why? Sometimes it can take more than one pay cycle to complete the rerouting. If so, you should make sure that your automatic payments are not transferred to the new account until your paycheck is transferred.

4. Once you know what date your direct deposits will transfer, reschedule each automatic payment or debit to come out of your new account. Make sure to ask the company what date the change will apply.

Why? Sometimes it could take one whole statement period to reflect the change. If
this is the case, make sure you leave enough money in the old account to
cover the payment when it occurs.

Image by RambergMediaImages via Flickr

5.Leave at least a small amount of cash in your old checking account for at least one more month.

Why? This will ensure that every payment will be covered if you happen to forget about something. The amount you leave may depend on whether your old bank or credit union charges you a fee for maintaining a low balance. If so, try to leave the required amount to avoid a charge.

6. Once you are sure that all automatic payments and all direct deposits are coming and going from your new account, electronically transfer the final funds from your old account into the new account.

Why? Though it may take a few days before an electronic transfer clears, transferring money electronically is generally the fastest, cheapest, and safest way to move money from one account to another.

7. Once the transfer clears in your new account, follow the procedures for closing an account at your old financial institution. Make sure to obtain written confirmation that your account is closed.

Why? Your account does not automatically close when you withdraw all of the money; you must follow the process laid out by your financial institution to make sure you close the account properly. By obtaining written confirmation that your account is closed, you can rest easy that you’ve taken the appropriate steps. If you don’t close the account, you might get hit with a monthly account maintenance fee even after you stop using it.

Why Is Over 50’s Life Insurance Different?

Image by Thomas Hawk via FlickrIn some respects, over 50’s life insurance isn’t much different from other forms of life cover – it exists to offer you and your family a degree of financial protection should the worst happen.


Yet in other respects it may be – and those differences relate to the typical nature of people’s lives, as they get older:

• If you are in your younger years, perhaps with a young family and a heavy debt burden (mortgage etc), then you may typically be looking for a different profile of life cover than someone who is older and with perhaps less extensive long-term financial commitments;
• By contrast, if you are over 50, you may incline towards a form of policy that you know is open-ended, in other words, it will pay out a fixed sum upon your death, at whatever age you die;
• Someone younger and with a larger debt profile to cover, may require a larger sum insured but one which is only in effect for a number of years (called the term of a policy and something that may typically be seen running in parallel with a mortgage);
• Over 50’s life insurance that is unconstrained by a term, is sometimes referred to as whole life cover or traditionally, life assurance, as assurance is against something that you know will happen eventually whereas insurance is cover for something that may happen in the future;
• Nobody can really decide what form of over 50’s life insurance would be suitable for you – only you can decide that having carefully reviewed your financial position and that of those you care for, however, it may be prudent to keep in mind just how expensive things such as funerals may prove to be;
• Unfortunately, death isn't the only thing that you may need to worry about – if you are still responsible for supporting your family through income earning, then something such as critical illness may deprive you of the ability to continue working, so it might be sensible to consider loss of income cover insurance at the same time;
• In our modern society, increasing numbers of people are living and working longer and that is something that implies that they may have longer-term financial commitments than was the case for the over 50’s of previous generations - that may be another reason why it may be sensible to look further at your options for over 50’s life insurance.