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People often tend to overlook small things, but we have to always remember: the devil is in the details. Little things can change our lives, and it is not necessary that they are complicated. Take a look at this effortless list and pick what you can do to save some money the easy way.

Coffee, or the Starbucks Effect – since when do we need coffee every morning in order to get us going? Price it at least $2 per day, and in one year you can easily spend up to $600. Brewing your coffee, on the other hand will cut that cost in half.

Change your bulbs – 100 Watt regular bulbs burn 10 times more than an energy saving CFL bulb. It is good for your wallet; it is also good for the environment.

Call your banks and ask them to lower you APR’s or waive some fees. Ask to talk with a supervisor.

Save on transportation by riding the bus / subway or carpooling. Even if you do it only once a week, it will save you a lot of money on gas and other car expenses.

Don’t buy bottled water – tap water is perfectly ok to drink. At $2 per 1.5 l bottle, you are throwing away up to $1000 per year on water.

Buy generic products – they are made from the same ingredients but cost less, because you are not paying for the brand (and for their shiny packaging).

Unsubscribe from all those magazines, newspapers and cable TV. Take a walk in the park instead or read a real book.

Brown bag it and stop buying from the vending machine – first of all it is expensive, second its junk food and third one hour later you will be hungry again.

Buy stuff on sale, around the holidays and look for coupons online.

At the end, if you follow the above easy steps, you will probably save at least $3000 per year. Not bad, right?

Tags: save money | frugal living | gas

There are several websites and even programs out there that let you search a zip code for gas stations with lower gas prices. But is it really cost-effective to spend time and gas driving around just to save a questionable amount of money?

Let’s do a quick estimate. Say a gallon of gas costs $4.00 at Gas station 1, and that gas place is 1 mile away. Gas station 2 sells the same gasoline for a lower price, $3.85, and its 3 miles away. For this example, our vehicle will have a 12-gallon fuel tank and it will burn approximately 25 miles per gallon (city driving).

So, after calculating the cost of driving (which is a mix of gasoline cost and vehicle amortization cost) you basically save $1.48 per fill-up. And if you are fueling 4 times a month, 48 times per year, your savings will come to around $70 annually. Now, if you also add the cost of the time you will spend in driving (which has no price) my guess is that you will come up with the right answer to the question, ‘Is it really practical to tinker around for cents?’ all by yourself. For the rest of us, who really hate math – it’s not worth the hassle.

Tags: gas | gasoline | cheap gas | vehicle | car | auto

Buying a used car is like buying a cat in a bag – most of the time you won’t know about the problems the vehicle may have until after you sign the documents and drive off. Unfortunately, there is never a 100% guarantee, but here are some helpful tips on how to do as much as possible to ensure that the vehicle is good.

Check the history records: Carfax.com offers a vehicle history report. You will need the vehicle’s VIN number (ask the person selling it) in order to run the report. It will provide vital information concerning the auto you are about to invest your money into. A CARFAX report can disclose past vehicle accidents, recalls and registration information.

Check the vehicle body: All panels should be well-aligned, especially around the doors – check the gaps, the sections should be evenly positioned. Look at the paint color – does it match on all panels? Check the bottom of the doors for rust. Inspect the body for scratches, dents and fresh paint. Take a good view of the tires – especially the sidewall should be clean of cuts and damages. All tires should be the same (brand and type) and they should be evenly worn out. Open the driver’s door and take a look at the vehicle label – it usually will indicate the VIN number. Compare it to the registration VIN.

Inspect the interior: Good interior usually means the vehicle was taken good care of. Check for broken locks, buttons. Take a look at the dashboard, the seat belts, and the trunk. Test all doors.

Electrical stuff: Test all the lights on the dashboard – turn the key halfway until all lights light up. Make sure they all work – this indicates that the on board control unit tests the various systems of the car. Check the headlights, the taillights, the signal lights, the backing up lights. Turn on the radio.

Heater and A/C: Start the car, turn on the A/C. Make sure that the air is cold. Check the heating function as well. Turn the A/C on the highest speed possible and listen to the engine – if it struggles there may be a problem.

Engine: Pop the hood with the engine off. Inspect visually for oil leaks, torn cables / pipes. Open up the coolant fluid and take a look inside – is it clean and bright green? If it is brownish or there’s oil floating on top there is a problem. Also take a look at the engine oil – it should be brownish and there shouldn’t be any bubbles in it. Black oil means it hasn’t been changed regularly or that the engine burns oil. The transmission oil should have bright red color. Ask if the transmission has been flushed ever and if the transmission filter was changed. Let the owner start the engine and listen for noises, clicking. Check the temperature too. Ask the seller to shift the transmission from Park to Neutral (make sure to apply the brakes first) and look at the engine. It may move a bit but if it jumps a lot during shifting, avoid buying this vehicle. If you can, stick your head under the engine bay, watch out for leaks.

Transmission: Take a seat inside the car, start the engine. Apply the brake, and shift from P do D than to L / 1 / 2 / 3 / R (or whatever options you have). Fell the car – does it jump or does it make weird sounds every time when you shift?

Take a test drive: Don’t just drive on the parking lot – take a good ride, slowly, make some turns, and it would be great if you can do a short highway run. Listen, smell and look for anything out of the ordinary. Try turning the A/C, the radio, the heating while driving. Stop the car somewhere; leave it for a minute with the engine running, than ask the owner to sit inside and step on the gas. If a smoke cloud appears, this vehicle is burning oil – avoid buying it.

Trust your intuition: I the car is really good, but the price is unrealistic, avoid buying it. Ask for maintenance records; oil changes; known problems. Why is this car up for sale? How long have they owned the car? Has the car been involved in an accident? Check the title – does the VIN, the owner’s information match? If everything looks ok to you, go ahead with the purchase. If you have doubts, take the car to your mechanic / nearest shop and have it checked out. After all, it’s your hard earned money!

For more information or to file a complaint with the Federal Trade Commission, visit the FTC site.

Tags: car | vehicle | used car | dealer | credit

Not that long ago Chrysler’s marketing department came up with a new way to sell their cars and boost up the manufacturer’s plunging sales. They have turned the consumer’s concentration to a possible light in the tunnel in the recent gas price craze - under the motto ‘Let’s Refuel America’ Chrysler offered what firstly seemed as a great benefit to the buyer: a $2.99 gas price guarantee for up to three years. Sounds wonderful, but how about the fine print?

Unfortunately, the guys at Chrysler ‘forgot’ to mention the details in their commercials. The first and the biggest hit on the customer is the fact, that the buyer will not receive the usual inducements: Most of these vehicles normally are sold with cash-back incentives. However, if you go with the ‘Let’s Refuel America’ plan, you won’t be able to take the green as well, although some of the cars in this plan also offer some cash-back — $500 plus the gas as opposed to $2,500 cash back, for instance. The second caveat is the octane restriction - the plan only applies to diesel and low-grade gasoline, with octane level no higher than 87. Which means that if you pump mid or high-grade gasoline, you will be paying the full price. But that’s not all! The ‘Let’s Refuel America’ deal will only cover you up to 12 000 miles per year. Every additional mile on top of that - you guessed right, regularly priced gas. And last, but not least - you are restricted to maximum of 708 gallons per year.

So after doing the simple math, at average price of $4.20 per galon the ‘Let’s Refuel America’ deal will save the buyer about $800 per year, or up to $2600 for the three years in which the incentive is active. Knowing that you could have received at least $2500 cash back on that vehicle, the ‘Let’s Refuel America’ program doesn’t really save you a dime.

Tags: gas | fuel | jeep | chrysler | Let’s Refuel America | $2.99 guarantee

When it comes to applying for a mortgage to buy a home, lenders are on the lookout for specific criteria. While applying and qualifying for a mortgage is not an insurmountable task, it is important that you rate high in many of the key areas or you are not likely to be approved. Let us take a look at these essential areas.

Job Stability

Lenders like to approve individuals who have held the same job for at least two years if not longer. Jumping from job to job or having holes in your job history will require explanation and is not advantageous in the eyes of a lender.

Owning a Business

If you own a business you must provide a solid history of the success of your business for a two year period. To do this you must either obtain a letter from your accountant that clearly states that you have been in business for a period of two years or else you must be able to show proof of a business license that will identify when your business got its start.

Two Year History

If you do not have a two year job history or have not been in business for two years then you can still apply for a mortgage. If you qualify in the other categories then you are not likely to run into a problem with being approved. For those who fail to meet the two year criteria there are what is known as “No Doc” loans. If you apply for one of these types of loans, your job history does not have to be disclosed or verified. The down side however is that you will pay a higher interest rate on the mortgage.

Income

The two year rule applies with income as it does with job history. The lender will need to see two years worth of W-2 forms as well as your current pay stubs. If you own a business, the lender will take a two year average of the money you have earned based on what shows on the last line of your tax return after everything else has been written off. If you earn a commission income you must be able to account for a two year history and from that the lender will take an average. If your monthly debts equal 41% or less of your gross monthly income then you should be approved for a mortgage.

Down Payment

The traditional amount required for a mortgage is 20% which will put you in good standing with the lender and help you get the best interest rates possible. However putting 5% or 10% down is still something a lender will be pleased to see.

Reserves

Reserves are money that remains in your bank account after you have paid all of your closing costs. Having one month of reserves looks well to a lender and that includes enough money to cover one mortgage payment, your property insurance and all applicable taxes. The reserves you need are dependent upon the type of mortgage you are applying for. As a general rule, having two to six months worth of reserves is considered desirable.

Credit History

Your credit history plays a significant role in whether or not you will be approved for a mortgage and well as what terms will be set down. It is your “fico” score that will be closely scrutinized by the lender and will weigh heavily into the decision of whether to approve your application or not.

Tags: mortgage | lender | credit | home | realty

When credit cards first came into existence there was only one type, the unsecured credit card. If you had good credit and passed all of the relevant criteria, such as a specific income level and working at the same job for a number of years, then you were approved for a credit limit set by the financial institution. Unfortunately many people run into financial difficulties and do not qualify for this type of credit card. Thus the door was opened to the secured credit card.

The secured credit card is basically a credit card for individuals with poor credit (such as those who have been discharged from bankruptcy); or those who have a lower income. This type of credit card is one in which you put down your own money as collateral. You may then use the card and borrow in this manner until a time at which the credit card company is willing to consider extending you credit by way of an unsecured credit card. This will happen once you have proven that you can use credit responsibly and can pay your bills on time every month.

In most cases, the limit on a secured credit card is low, in the range of $500 to $1000. This is a small enough amount that the person who is attempting to rebuild their credit should not run into any financial problems. Most companies are willing to consider a responsible credit card holder for an unsecured card after they have been with the company for anywhere from one to two years. The request will be considered on a case-by-case basis. Once you feel you have proven yourself with responsible credit card use, do not be afraid to approach the company about switching to an unsecured credit card.

There are a number of companies that issue secured credit cards but it is important that you look for one that does not charge an application fee. Most have an annual fee as this is a standard practice, but make sure you compare the fees from company to company before you make a final decision.

Another important point of note is that before you apply to any particular credit card company, find out if they make it a habit to report their credit information to all three credit reporting agencies. After all this is a primary benefit that you should take full advantage of.

Tags: credit card | secured credit card | debt | apr | loan

Millions of Americans are seeing inflation in the price of gas and groceries, but they are being told that the heart of the consumer engine is spending. Some will even argue that in some areas, costs have dropped (like housing) and interest rates on loans have fallen, making it an ideal time to buy a home. But, for those struggling to put food on the table and make the long commute to work at the same time, these conflicting messages can be troublesome. If they continue to spend at the level that they can’t support, they may end up having to take a cash advance to help pay for daily expenses, instead of reserving payday loans for emergencies as they are meant to be used. This can put them further in debt, if spending is not curtailed, and new budgets drawn up to accommodate rising prices.

The first thing a budget can help with is figuring where all the money is going. It may surprise some families to realize that they are now making an additional car payment in the form of gas costs just to make it to work. If they aren’t keeping track of the grocery or the gas bill, they won’t be able to see where the biggest savings might come from. They can’t make decisions based on actual numbers and instead might opt for feel good economics instead of some needed hard choices.

Once a budget is drawn up, people know where modifying behavior will make the most financial sense. Maybe carpooling with your spouse and eliminating one car is the way to go to help you meet your expenses during times of high inflation. Maybe shopping at the big warehouse club is actually increasing your grocery bill because it is too far away and it costs more to get there. Maybe, you can find out which foods cost less and can be used to build a menu during the week without making people go hungry in your family. All the little things add up in a budget and can help you to keep your spending in line while continuing to take advantage of specials when they are available.

Would you pay money to lend yourself your own money? No? Well if you wouldn’t do so, why would you take an Refund Anticipation Loan?

It probably seems easy at first: sing a paper and walk out with a check against your coming refund. Yes but no! Your tax RAL will cost you much more than you can imagine. As an example, H&R Block’s RAL cost is about $230 for a $3000  refund. And you get that refund on a Emerald Card with 36% APR!

Such loan makes no sense. You are way better filing with e-file and getting the refund deposited directly into your bank account. It only takes about a week after the e-filing to receive your funds.

Tags: e-file | filing | hr block | taxes | ral

Decoding and properly understanding the fine print on credit card agreements is the foundation of your financial decisions. And if you want to make the right choice, make sure that you know what you are putting your signature under.

Fees. Annual Fee, Application Fee, Balance Transfer Fee, Late Payment Fee… Some credit cards are so overwhelmed with fees, that you credit limit can be entirely consumed by them before you even get a chance to use the plastic. Watch out for those charges! It’s a good idea to make a list of all the fees which your credit card carries in order to really understand how much exactly the credit will cost you.

APR. Most credit cards offer a low or 0% APR to their customers, but that’s just your initial APR, otherwise called Introductory APR. It is usually offered for 6 or 12 months, and after that period passes, you will be paying the regular APR. Then you also have a Default APR, which comes in effect when you miss payments, go over the limit or simply when your credit score goes down (“Universal Default”). You also may have up to three different APR’s: for cash, for balance transfer and for purchases.

Billing cycle. You can be billed bi-weekly, monthly, annually and in all kinds of other time incremental. Some banks even use double-billing cycle, where you have two due dates: one for your minimum payment and one for the entire balance.

Balance Transfer Terms. That 0% on Balance Transfers may come with its own Fine Print – for example 5% fee on the balance transferred or $2 per every $100 transferred.

Binding Arbitration. The credit card issuer is giving notice that if the cardholder has a disagreement with the creditor he or she can’t sue the card issuer in court. As a substitute, they must take the case to a private arbitrator or judge.