Livin' Frugal..It's not as hard as you think.

Times are tough. When times are tough, every penny you make and spend makes a huge difference. There are lots of ways to save money, that don't feel like so much work. I want to explore different ways to save money by taking the frugal approach. Next time you want to spend that hard earned dollar, just ask yourself, “what would a penny pincher do?”

There are some very simple things you can do around the house to save a buck. Just by turning your thermostat down a couple degrees in the winter and up a couple in the summer can save you 3% in energy costs, per degree. You can also change your light bulbs to compact fluorescent bulbs. These bulbs use a lot less electricity and last a lot longer. And although your light bulbs are going to last longer, don't test that theory by leaving the lights on when you aren't using them. Turn your electronics off also, especially your computer. Planting trees around the outside of your house to help keep it shaded can save you hundreds of dollars a year. Keeping your house more energy efficient can be just as good for the environment as it can be for your pockets.

Having a car can also mean having a lot of extra expenses, but since it's hard to survive without one these days, there are ways to save there too. Get regular tune-ups, it keeps your car running better and saves on gas mileage. You should drive the speed limit and try to avoid stop and go traffic or accelerating to fast. These are just a few simple things that can be done to help put money back in your pocket.

References:

1. Care One Credit Counseling. April 2, 2007. 101 Ways to Save One Dollar A Week.

<http://www.careonecredit.com/knowledge/101-ways-to-save-one-dollar-a-week.html>

Should Our Credit Score Define Who We Are? I Think Not!

So many people worry about their credit score. I would know, I am a victim of those sleepless nights? But, I want to know why? Why do we worry so much? Why is it so important? How can one number mean so much? My goal is to find out.
A really important part of understanding how the system works, is to understand the components of the system itself. Three words...Experian, TransUnion and Equifax. Don't ever forget those names, because those are the agencies that will determine your credit “worthiness.” Your score is calculated from information that is in your credit history, also referred to as your credit report. It is often called your FICO score, which was developed by Fair Isaac Corporation and is the most popular system used today.
Your FICO score ranges from 300-850. If you have a score above 700, that is considered very good, but if you fall below 600, that is considered very poor. Your FICO score is made up of 5 different parts, your payment history, which is 35% of your score, how much you owe, which is 30%, the length of your credit history, which is 15%, new credit, which is 10% and other, which makes up the last 10% and can be any number of minor issues, such as too many different types of credit. All of these things are calculated in some unknown way that only FICO knows.
Your credit report doesn't just have your credit score, but a lot of personal information about you. It includes your name, address, social security number, date of birth and telephone number. It also keeps track of past information,for example old addresses and previous employers. Along with your credit information, it contains all of your banking information. I hope you didn't overdraft last month, because believe it or not, that's on there too.
Lenders and credit card companies want to know more about you, than you know about yourself. They want to be able to determine in a matter of minutes your ability to pay and the likeliness that you will pay. Your score fluctuates on a daily basis, every transaction you make can potentially affect your score. The upside is that it isn't completely hopeless, if you do fall below that unspeakable 600. There are ways to improve your score. Pay your bills on time and always try to pay them in full. Pay off any debts you have quickly and don't apply for credit too often. Over time, negative credit will be removed from your report, generally about 7 years.
So, if you were ever like me and wanted to know why your credit score was so important, now you know. Now we can both stay awake at night worrying.


References:
1. Understanding Your Credit Report and Credit Score. Nov. 9, 2007 Financial Consumer Agency of Canada.
<http://www.fcac-acfc.gc.ca/eng/publications/CreditReportScore/UCreditReport_e.asp#whatcr>

2. Credit Score. 2008. Wikipedia
<http://en.wikipedia.org/wiki/Credit_score>

Debt...the ugly, the uglier and the OH MY GOD!

Debt can best be described as a dark cloud looming over us,waiting to pour down on us at any minute. We often mistake credit cards as our umbrella, when in fact they are what cause the rain in the first place. Credit card debt is at an all time high. Each year the average debt for an American family increases; up from $2966 in 1990 to $9840 in 2007. Credit card companies can be down right predatory toward middle-class Americans who struggle to pay their bills. A person with a low credit score and a history of late payments is a gold mine to these companies. They have to wear sunglasses to disguise the dollar signs in their eyes. CHA-CHING,CHA-CHING! It's no wonder, with all of the hidden fee's, late charges and other penalties put upon us. It's enough to make you run for the hills.

As I researched statics on credits cards, I was flabbergasted by what I found. A purchase made with a credit card usually ends up costing the consumer 112% more than if they had just used cash. People using credit cards at fast food restaurants instead of cash, spend up to 50% more. This is highway robbery. 40% of Americans rack up more credit card debt, then they earn annually, with about 60% of current accounts not being paid monthly. Leaving consumers with those horrible late fees and feelings of shame.

As one of those despicable people with credit card debt looming over me, I am also one of those people who are bombarded with new credit card offers every month. In 2007, over 5.3 billion offers for new credit cards showed up in peoples mailboxes. Congratulations to me! I have been pre-approved. Does this mean I have been forgiven?

(Statistics provided by: http://www.hoffmanbrinker.com/credit-card-debt-statistics.html )

Crazy Me

I am a mother of a beautiful 3 year old little girl. I work as an accounting assistant for a large auto group and now I'm back in school. Watch out world...I'm back. The most important aspect in my life is my daughter. Let me tell you...she is out of her terrible twos and well into her horrible threes. The horrible threes will turn any sane-minded person into an eye-twitching, hair pulling lunatic. That's me...when I became a parent, I became crazy.