Savings | Miss Money Bee

By April Lewis-Parks

Your credit card may be your best friend when it comes to long shopping trips, booking vacations and your weekly manicure and pedicure sessions, but when the end of the month rolls around and your bill comes due, you may realize that your relationship with credit is more toxic than beneficial.

A healthy and disciplined use of credit can have positive benefits for your credit score and help you reach financial independence. However, a reliance on credit can have the opposite effect, and it’s important to know how to end poor credit management habits that may result in credit score damage or heavy debt.

Recognize harmful credit behaviors

 Many people mistakenly believe that carrying excessive debt is the only credit problem that leads to a lower score. While this can seriously hamper your rating, there are other behaviors you should steer clear of that can have a heavy impact on your rating. For example, skipping payments every now and again can cause your score to fall, especially if bills are 30 days or more overdue. Your payment history makes up the largest percentage of your credit score – 35 percent to be exact – so paying on time is crucial.

In addition, excessive applications for new credit lines – ranging from new traditional cards to rewards retail products – can also drive down your rating. You might also be tempted at some point to get rid of the high number of accounts you’re holding by canceling some cards. This is another credit no-no, particularly if the accounts are older. If you are exhibiting any of these behaviors, it may time to reevaluate your relationship with your credit card.

Use cash

 Leaning more heavily on dollars and cents rather than plastic may encourage you to avoid impulse buys and other unnecessary spending, which can help you stick to your budget and prioritize your spending. It’s easy to overspend when you swipe a card and don’t see your balances change, but it’s much more difficult to justify a splurge purchase when you feel your purse getting lighter. If you prefer the convenience of swiping a card and don’t carry large quantities of cash with you, consider using your debit rather than credit card. If you download a budgeting app on your smartphone, inputting balances as you make transactions may also help you ward off temptations.

By April Lewis-Parks

Shopping for a new summer wardrobe or booking travel plans for a long-awaited vacation can be an exciting and you may jump at the first reasonable price you see. However, the difference between shopping around a little bit and exploring every discount possibility can mean the difference of thousands of dollars in spending over the course of a year.

Unfortunately, too many people lack the patience to comparison shop and wait for discounts, which prompts them to overspend. Recent data from ShopatHome.com reveals a large number of people don’t take the time to truly explore all their savings avenues.

“Our customers are educated about deals and are considered experts on savings,” said Marc Braunstein, co-founder and CEO of ShopAtHome.com. “However, we still see some money left on the table when it comes to shopping and ways both retailers and shoppers can educate themselves on how to make the most of their online shopping footprint.” The study reveals how people can save money in a number of spending categories.

Travel
When it comes to booking your dream vacation, an overwhelming 48.2 percent of survey respondents said they were able to receive the most discounts by booking their trips as early as possible to avoid last-minute price hikes. Airlines frequently raise rates during holidays, travel seasons and during last-minute bookings, so getting all of your arrangements finalized early can only work in your best interest. Another 39 percent book their trips as a package, rather than booking hotel accommodations, airfare and rental vehicles individually. Don’t forget to seek out alternative means of transportation and lodging. For example, if your destination is not far, you might save money by traveling via rail rather than airfare. If you plan to stay at an exotic location for a week, renting a condo with all amenities included can save money over a fancy hotel.

Clothing and accessories 
Most people like to switch up their wardrobes as the seasons change, but that doesn’t mean you have to break the bank to look fabulous. Peruse your favorite retailer websites to learn about ongoing or future sales, discount codes for online shopping and other ways to receive coupons. Sometimes, you can get access to free items or coupons simply by signing up for a free loyalty program. Keep these routes in mind before you enroll in a store credit card to earn discounts on purchases. Unless you plan to pay off these cards in full each billing cycle, they typically come with high interest rates and limited savings.

Remember to have a great time hunting down the best deals possible while you save a ton of cash in the process!

by April Lewis-Parks

Technically spring has sprung, but I know that for many of you around the country old man winter is still hanging around… but it is a good idea to start to think about reevaluating your household budget. Now is a great time to review the different financial products you have and start fresh with your financial habits if you have fallen off the wagon regarding any money New Year resolutions.

Organizing your home makes you feel less cluttered and takes stress away and getting rid of financial problems gives you piece of mind. This is a great way to set goals such as helping your kids through college, enjoying a nice retirement and eliminating debt.

Financial spring cleaning tips:

Clear out the junk. It is much easier to be organized when there is less clutter. Put all receipts together and print out bank and credit card statements. Make a list of all debts including the account number, interest rate, outstanding balance, payment due date, credit limit, and the minimum payment. This keeps things organized and prevents bills from being late.

Review credit reports. Visit AnnualCreditReport.com or call 1-877-322-8228 to request a free credit report from the three primary credit reporting bureaus (Equifax, Experian and TransUnion). Each bureau is obligated to provide a free credit report every 12 months. Verify that all information is accurate and if mistakes are found, contact the credit-reporting agency immediately. Rather than dispute the mistake via an online form, send a letter that includes complete name and address, a description of each item being disputed, an explanation of why it is getting disputed along with a request for deletion or correction of the information.

Wipe out debt. Pay off high interest rate debts first. Once the high-interest debt is paid down, tackle the next highest, and so on. Continue paying the minimum due on all other debts.

Don’t hesitate to ask for help. There are reputable debt-counseling agencies that consolidate debt and teach individuals to manage their finances better. Consolidated Credit conducts free budgeting analyses and dispenses free advice on a daily basis. If someone needs help they can speak with a counselor with no

By Katie Bryan

America Saves Week February 25 – March 2, 2013 is chance for individuals to assess their own saving status and take financial action. Studies reveal that having a savings plan with specific goals can have beneficial financial effects, even for lower-income families.

Here are 4 easy ways to get involved in America Saves Week:

1.Take the America Saves Pledge
•Those with a savings plan are twice as likely to save for emergencies and retirement than those without a plan. Join over 310,000 people who have already committed to save. Pledge or re-pledge today!

2.Share Your Savings Goal
•People save more successfully when they have a goal in mind. That’s why we’ve created posters so you can put your savings goal into perspective and share it.

3.Assess Your Savings
•Find out if you are saving in all the right places with this 12 step savings assessment.

4.Test Your Savings Knowledge
•Take this savings quiz to reveal how much you understand about the realities of savings in America.

America Saves Week is coordinated by America Saves and the American Savings Education Council. Started in 2007, the Week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status

By Ines Mato

Many people are aware that financial emergencies can occur at the drop of a pin, and plan accordingly by saving a small sum to cover these potential disasters. Unfortunately, a greater number of individuals carry the “it won’t happen to me” mentality, which can put their financial security in jeopardy. Some aspects of financial prosperity involve eliminating, building a healthy savings account and living within your means. Another important component revolves around preparing for the unexpected to avoid being forced to drain accounts.

Save for unexpected repairs
An emergency savings account is a smart way to shield yourself from potential danger, and there are a number of expenses and scenarios you should consider when putting money aside. The first common emergency expense is home or auto repairs. A leaky roof, engine troubles or busted boiler can cost hundreds to thousands of dollars to fix. Many of these repairs must also be done immediately, either for safety reasons or to help you continue your day-to-day activities. For these reasons, it’s important to not only maintain your assets to lower the risk of an issue occurring, but also to save up a significant sum of money to avoid dipping into your savings, turn to credit or drain retirement accounts.

Job loss
A job loss is perhaps the most worrisome and immediate scenario that you could face. A sudden loss of income can be devastating, and the last thing you want to do is use your hard-earned savings to cover mortgage payments, utilities, insurance and groceries. In many instances, families are forced to give up insurance, cash in retirement, run up credit card debt or fall behind on housing costs, all of which puts their financial security at serious risk. Obtaining a loan may also be more difficult if you are unemployed. An emergency savings fund that is large enough to cover at least three to six months worth of expenses may help mitigate the problem until another position is found.

Medical emergencies can carry a high price
Many Americans facing significant debt are making large payments as result of a medical emergency that caught them off-guard. No one likes to think of getting into a car accident or discovering a medical condition, but these situations can strike when least expected, and being financially prepared is essential. Simple medical procedures can cost into the hundreds and serious conditions may leave you with thousands in medical bills. While you may not be in a position to save tens of thousands for this possibility, saving some money may allow you to make upfront payments and negotiate with providers.