Sometimes Saving Money Isn't Worth The Extra Time and Effort

By MoneyBlueBook

If you're a frugal person and like to live a thrifty lifestyle, then I'm sure you might have done this before. Have you ever found yourself driving long distances or straying off your usual travel path to visit a more distant store or gas station just so you could save a few extra bucks? Or how about this one - have you waited outside an electronics store or mall entrance for hours or even days for the opportunity to catch a special limited bargain?

I used to be an extreme bargain hunter but now I'm trying to be more sensible about it. Although I still like to save, I realize now that sometimes the extra savings doesn't justify the extra effort and mileage required. But old frugality and bargain hunting habits are sometimes hard to break.

My Feeble Attempts At Saving Money

Case in point - when first I moved to my current neighborhood, I continued to visit the former Shopper's Food Warehouse near my old place because I found it to be cheaper than the closer alternative at the nearby Giant Food store. But over time I realized that this back and forth trip was an absolute waste of time and didn't justify the measly few dollars and cents I saved in grocery costs. Although I saved money by traveling to a more distant store, I was wasting even more on time and gas money unnecessarily. Sometimes it's easy to lose sight of the overall financial savings picture.

This is also the same reason why I ultimately decided

By MoneyBlueBook

I had dinner with a good friend of mine not too long ago and the subject of jobs, aging parents, and financial planning came up. My friend knew that I had this personal finance blog and decided to share with me some personal information to get my advice. After listening to him talk about his income and how he stashed all of his accumulated money in his checking account, I realized that he had no clue about the basics of financial planning and the need to put his money and investments to work for him.

I ended up explaining in great detail to him about the power of compound interest and why it was so important that he immediately jump start his financial future today and not delay any longer. To give my newbie friend the spark he needed to start his way towards fiscal growth and responsibility, I provided the following basic tips:

1) Pay Off High Interest Credit Card Debt As Soon As Possible - Fortunately for my friend, although he used credit cards regularly, he had no outstanding balance that he was paying high interest or fees on. His FICO credit score was also thankfully a pristine 750. For a great number of people though, credit card debt is a serious problem since credit cards almost always have higher interest rates (10-30% APR) than any other type of debt.

In my opinion, credit card balances must be tackled before anything else, including worrying about retirement concerns. One can't possibly plan for the future if

By MoneyBlueBook

Conventional wisdom suggests that it is always better to buy a home than to rent. After all, when you rent you are given no tax breaks and you are not investing your rent payments into anything that will appreciate over time. I don't disagree with the pro-buying sentiments, but I think during major housing recessions we need to rethink our strategy. Unlike stock market corrections and shifts, the real estate market trends are slow to act and slower yet to cycle through the changes. Like a sloth, the housing market inches slowly downwards and upwards and I think we've only yet begun to see the worst of the housing collapse.

Buying a home is usually a much better option in the long term compared to renting, but I think these are different times. I have every intention to buy a house in the future - just not at the present moment or for the next 2-3 years at least. My short term goal is to invest my funds in the stock market and continue to save. I currently lease a brand new condominium unit I discovered through Craigslist. Ever since college and graduate school I've been renting and I think it's been a smart decision. I did not have the funds during my earlier college years to purchase a home, so I missed the housing boat. My best bet now is to enjoy my rental lifestyle for a few more years, and continue to grow my eventual down payment.

Aside From the Obvious Timing Reasons,

By MoneyBlueBook

I think you can ask anyone for advice about their personal top five ways to save money and you'll likely end up with a variety of suggestions. We all have different guilty pleasures and financial priorities so obviously the list would differ greatly from person to person. Some of these habits are hard to give up. For example earlier, I talked about the reasons why I chose to buck the conventional frugality wisdom of avoiding bottled water. For me, the health benefits and convenience outweighed the long terms costs.

Cutting back on purchases that you wouldn't miss or expenses that wouldn't cause too much discomfort or inconvenience are the easiest ways to save money. I'm offering a few suggestions that hopefully will get people thinking about some of the simple day to day expenses that we may have a tendency to overlook, but that may go a long way in helping us save money for the future:

1) Don't Pay Extra For Sodas During Lunch - Ask For a Free Cup Of Tap Water Instead.
This is probably one of the easiest habits to break. Did you know that most cafe lunch joints charge a premium for sodas and bottled drinks? These type of meal accessories are much easier to overcharge because lunch and meal patrons focus on the cost of the main dish, frequently overlooking the extra charges when they decide on where to eat out for lunch.

Besides, drinking water is much healthier than loading up on sugar-filled sodas or other bottled drinks. Even seemingly

By MoneyBlueBook

The Best Credit Cards For College Students and Graduates To Learn Credit Responsibility

If you are a college or graduate student, it's important to understand that proper credit card management is a trait and skill that should be developed sooner than later in life. If you are the parent of a teenage child who is currently a college student, it's very important to teach him or her the importance of building up a good credit history while he or she is still in school, before entering the real working world where credit card mistakes and shortcomings are more brutal. The FICO credit score is heavily dependent on the length and quality of each person's long term credit history, so it's in the student's best interest to develop good credit usage habits and responsible management skills early on. Avoiding credit altogether out of fear or mistrust of credit cards is a misguided approach in my opinion. How else will a student develop the financial management skills he or she will need to succeed in this technologically and financially driven world?

Knowledge and Education Is Power, So If You Are A Parent, Be Sure To Teach Your Student Or Teen Financial Responsibility Early and Often

Many parents today are afraid of giving their college age teen the huge financial responsibility of using a credit card. But shielding them away from this altogether may hurt them in the future due to their lack of exposure to basic finance skills and their lack of credit history. They may

By MoneyBlueBook

Yes that time is still a few weeks away but that doesn't mean you shouldn't start preparing for the new year. Read the full article »