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April 23, 2011, at 6:01 pm If you're new to BFS, please subscribe to my RSS feed. It shows me a vote of support and keeps me motivated to keep your attention. If you have any questions or comments for me, please contact me and I'll get back to you asap. Thanks for visiting! The following in a guest post.
We can anticipate the summer holidays and pay off the credit cards from Christmas, but the calendar marches on and waits for no one, and often summer holidays are here before we know it. Oh, we try to plan for it, but somehow it creeps up too fast. One minute the weather is awful and the summer season seems so far away, and the next thing you know the sun is shining, the birds are chirping and it’s time to enjoy the season. Problem is, if we’ve let the time get away from us, we’ve got big plans and no cash to back them up for a proper holiday.
Planning for a summer holiday might have slipped your mind, but if you have a credit card you can still pull it off. However, you want to do it the smart way so you don’t end up in real financial trouble. Here are some tips to having a great holiday without breaking the bank.
- Take advantage of the credit cards that offer air miles. If you do this all year, by the time the summer holidays roll around you will have enough air miles collected to fly for free. Just make sure you are familiar with the restrictions of the contract. Sometimes there are blackout dates or other restrictions that may impact your plans.
- If you plan on traveling by car, many credit cards offer rewards for petrol. This can really help you out, especially with gasoline prices soaring. With enough reward points saved up, you can offset this expense with a little left over.
- Some credit cards offer discounts or free nights at hotels with their reward program. Again, check the fine print for qualifications, restrictions and a list of participating hotels. Often, you can book a room for a lot less than you would normally pay.
- What’s a holiday without shopping? A whole lot less fun, that’s what. Check your credit card’s reward program for discounts on shopping excursions at a variety of shops and stores. You might be surprised to find your favorite shopping destination offers big discounts depending on what credit card you use.
- Compare credit cards to find discounts that suit your particular situation. Some credit card companies are offering 0% financing, which can really add up to significant savings. Why not try doing a credit card comparison, you may find you can get more money for your holiday. Consider a 0% balance transfer to free up even more options.
You might be caught off-guard by how fast the summer holidays approach, but that doesn’t mean you can’t plan and execute a fun experience. Check out all your options by scrutinizing what benefits your credit card has to offer, and then pack your bags and head out for a relaxing and exciting holiday without the financial worries. By utilizing the right credit card, you could have a vacation that actually pays for itself, and it doesn’t get better than that!
April 23, 2011, at 6:00 pm
The following is a guest post.
A balance transfer from one credit card to another can be a powerful weapon in your arsenal when battling credit card debt. The trick is to evaluate your situation and research the potential credit cards offering the low interest rate carefully before making a decision. The actual balance transfer is actually very easy – all it takes is for you apply for a 0% balance transfer credit card is fill in a simple form and wait two to four weeks for it to take effect. However, the hard work takes place before you get to this point. Here are some things to consider before taking the plunge:
- Read the credit card offer carefully. Make sure you know exactly what is offered, and read the entire credit card offer several times. You’ll want to look for how balance transfers are handled. Some cards offer an attractive rate for the initial balance transfer only and subsequent transfers are handled as cash advances, meaning they are subject to cash advance fees.
- Determine when the offer expires. You may have anywhere between three months and a year to pay off your balance before the interest rate jumps to a much higher percentage. Mark the date, and mark it well – if you can’t plan to have the balance paid off by that time, it might not be worth it.
- Choose a card with more to offer. In addition to the attractive low interest rate, some credit cards offer rewards programs or cash back opportunities to get the most out of your business. Many cards offer air miles, merchandise or savings on travel expenses.
- Pay on time. This is probably the most important tip for those considering a balance transfer. For most credit cards involved in a balance transfer, just one late payment means the end to that attractive interest rate. If you aren’t sure you can maintain timely payments on the account, you might be better off sticking with the card you have now.
- Don’t add to the balance. Review the paperwork carefully. Most cards will offer the low interest rate for transfers, but not for new purchases. Not only that, but any payments made will be applied to the new purchase first, which defeats the purpose of transferring your balance.
Once you have made your balance transfer, the new credit card will send you a notice. It is a good idea to call the old card and verify this has been done; note the date and who you spoke with in case there’s a future problem. Keep making the payments on the old card until you receive confirmation the balance transfer has taken place. Follow these tips and your balance transfer could be the best thing that ever happened to your credit card debt.
April 23, 2011, at 6:00 am
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April 22, 2011, at 6:00 am
This is a guest post about ecologically friendly beauty product alternatives from Mrs. Money who writes at the Ultimate Money Blog, where she shares tips on frugal living, how to live green, and living a simpler life.
One of the areas of your budget that can be pretty easy to cut is beauty products. Shampoo, conditioner, facial cleansers, lotions, and other beauty products can cost a lot of money; not to mention they can be hazardous to your health.
Many shampoos and lotions contain many ingredients that can cause health problems. Parabens, for instance have been linked to cancer. Sodium lauryl sulfate is a common surfectant that’s found in almost all shampoos. It is very harsh on your skin and can cause irritation, yet many companies continue to use it because it’s cheap.
Don’t feel like you have to go run out to buy eco friendly beauty products. There are many different options for you to make your own beauty products at home for cheap! Here are some things you can do to save money and green your beauty routine.
Ecologically Friendly Product #1 – No Poo
Go No Poo. No poo is a method of shampooing your hair using just baking soda and an apple cider vinegar rinse. It’s super cheap and easy to do. There are only two ingredients: baking soda, and apple cider vinegar. Both are inexpensive and natural.
Ecologically Friendly Product #2 – No Conditioner
Stop using conditioner. You can make your own hair conditioner using apple cider vinegar and water. Dissolve two tablespoons of apple cider vinegar in a cup of water. After shampooing, pour the mixture on your freshly rinsed hair. Allow it to set for a few minutes, and then rinse. Your hair will be nice and soft!
Ecologically Friendly Product #3 – Make Your Own Toothpaste
Use a toothpaste recipe and make your own toothpaste. The ingredients include: baking soda, glycerin, salt, and peppermint oil. It doesn’t get easier than that! You can also use plain baking soda to brush your teeth, but I think it makes your teeth too sensitive so I make my own.
Ecologically Friendly Product #4 – Oil Your Face
Follow the oil cleansing method to wash your face. Using oils to wash your face sounds counter intuitive, but I’ve used it for years now and my skin hasn’t looked as good or been as clear as it is in years! You can also use small amounts of the oils as facial moisturizers.
Try those steps to ease yourself into eco friendly beauty products. You’ll save money and green your life at the same time!
Crystal’s Comments: I am lazy and like my products to come ready to use in a bottle. Yep, I am not completely green.  But, I do like to know about alternatives. The apple cider vinegar and baking soda idea sounds alot like what we use to clean out our sink (regular vinegar instead of apple cider vinegar), so I do see how it could work for my hair. I only wash my face using water, so I guess that is ecologically friendly, lol.
Have you tried any of the tips above?
April 21, 2011, at 6:00 am
The following is a guest post about paying off ”good” debt versus investing by Hunter at Funancials. Thank you Hunter for the day off!
This morning wasn’t the usual morning. Late-night storms left much of Charlotte out of power with noticeable debris on the roads. Replacing stop lights with policemen caused my morning commute to last 2 hours (which it’s usually not). I was understandably PO’d until I cranked up the radio and heard one commercial which stole my attention for the rest of the ride.
Pay Off Debt
It was a mortgage loan officer convincing people to switch from 30-yr mortgages to 15-yr, which I’m completely onboard with (assuming your budget allows). The benefit is undeniable when comparing the difference in interest you’ll pay, but I had a major problem with what he said next:
“No one is making money in stocks; no one is making money in the market. Any extra money you have should go towards your biggest asset, YOUR MORTGAGE!”
Problem #1 – I believe the house is the asset, the mortgage is a liability. (Crystal’s Comment: I agree.)
Problem #2 – Who is No one? And why aren’t they making money right now? (Crystal’s Comment: I also wondered how I became a no one…we have made good returns in stocks…)
Investing
This small radio advertisement had me reevaluating my personal situation. I currently have $9200 left to pay on my student loan at an interest rate of 4.8% (much like you’d see on a mortgage). Last year, after my Roth IRA contribution and making sure I had an emergency fund to cover 6 months, I invested $12,000 into a Mutual Fund. I’ve been extremely pleased with the 16% it’s been earning.
The way I see it, if I can earn >4.8% then why would I bother paying off my student loan? I wouldn’t be losing money per se, but I’d be foregoing earning more. If I left the $12000 in my savings account earning 1.2% then I would certainly pay off the loan.
I could also think about buying gold coins as an investment product. Gold always is worth something and could keep growing in value with time. By the time I retire, who knows how much gold could sell for per ounce?
Indebting vs. Investing
This is what I call “Indebting vs. Investing.” Should I pay off debt or invest funds? The answer to your specific scenario isn’t just about numbers, it’s about psychology; it’s how you think. I broke it down to Earning money or Finding Freedom. What drives you more?
As long as the interest I pay on my loan (mortage or student) is less than the interest I can earn by investing, I’m not going to worry about my debt. This is because I’m more driven by earning more rather than finding freedom.
If I were to be offered a job that pays more than my current one, but requires more time away from home and in the office, I would accept the new position. No matter what the circumstance (within my morals) I would choose to earn more.
On the other hand, someone else may value their freedom more. In the above scenarios they would:
1. Choose to pay off debt because they don’t like the feeling of owing someone or worse, being “owned” by someone.
2. Turn down the job offer so they can have more free time.
So when asking yourself if you should pay off debt or invest your excess funds, first ask yourself what kind of person you are (you may surprise yourself).
To some, time is money. To me, money is money.
Crystal’s Comments: To Crystal, time is priceless, debt sucks, and investing is profitable (hopefully). This is why my husband and I save, invest, AND are paying off our mortgage in 11 years or less. I love investment returns and I love to pay off debt. I like having my cake and eating it too. 
Where do you stand – pay off debt or investing or both?
April 20, 2011, at 6:00 am
Buying medical insurance can cost a fortune depending upon the individual needs of the health insurance buyer. One of the ways to try and save some money is by opening up a health savings account (HSA). In case you have not heard of an HSA, here you go!
What is a Health Savings Account?
A health savings account is a savings account that is funded with dollars taken out of your income before taxes. The goal of an HSA is to pay for any major medical expenses that are not covered by your current insurance plan with pre-tax dollars that you save for yourself.
How Does a Health Savings Account Work?
An HSA gives the accountholder a greater degree of flexibility as to what to do with their own health savings funds. These funds can be invested. They can be deposited into safe accounts that seek modest growth or even placed in investment assets like a mutual fund for investors seeking growth.
My company offers two different health insurance plans and the high deductible plan comes with an HSA. If we choose that plan, our company has our HSA funds automatically placed into a Chase savings account and we even receive a debit card to use for our medical expenses.
The best part in my opinion was that, according to the insurance professional that spoke with my coworkers and me, an HSA is your own account and goes with you even if you switch jobs or retire. Even if you can no longer contribute to an HSA, the funds you saved can be used for your own medical expenses until they are completely used up.
What are the Requirements for a Health Savings Account?
In order to be eligible for a health savings account, you have to be enrolled in a high deductible health insurance plan. Enrollees also cannot be covered under another health insurance plan. The advantage of high deductible plans is that their lower premiums for plan participants. The obvious disadvantage is that you will need enough cash on hand to cover the high deductible.
Who Can Make Deposits to a Health Savings Account?
Employers and employees can both make deposits into a health savings account. Contributions by employers and employees are made with pre-tax dollars. Employees are under no obligation to contribute to a health savings account and can stop doing so at any time.
In my company, my employer contributes absolutely nothing to our HSA’s, so make sure to find out before you sign up.
What is the Contribution Limit to a Health Savings Account Currently?
Single employees can contribute up to $3,050 in 2011. A family can contribute up to $6,050 in 2011. There is a catch-up provision that allows anyone that is 55 or older to contribute an additional $1,000 annually.
What are the Tax Advantages of a Health Savings Account?
Contributions to your health savings account reduce your amount of taxable income. Earnings are able to grow income tax free. The accountholder will not even be subject to taxes if they get a return on their HSA investments as long as all of the money is used for qualified medical expenses.
I personally chose the regular co-pay plan at my current job instead of the HSA only because the difference in premiums didn’t make up for the difference in deductibles. $37 a paycheck seemed like a fair price to pay to avoid an extra few thousand in deductibles if I did get into a major accident. Normally the difference in premiums is much higher, so an HSA is a fantastic choice.
Do you have an HSA? What do you think?
April 19, 2011, at 6:00 am
It’s finally warmer here in Houston, TX and my husband and I have been inspired to garden again.
Our Yard’s Beginning Budget
My husband and I got into the gardening spirit about 3 years ago and then let Darwinism take it from there. We spent $150 on plants and soil, spent hours digging up the appropriate areas and planting everything, and then we just let it go to see what would live.
A bunch of fragile flowers have dried up and died, but our crepe myrtle, Rosie the Double Knock-Out rose bush, a small Holly bush (that’s what our anonymous shrub actually was, lol), Monkey Grass, and Sun-Proof Lily-Turf have thrived despite the fact that I get very lazy and forget to water the little buggers. That’s usually a death sentence during our summers, but my little survivors seem to scoff in the face of drought.
This Year’s Yard Budget
Since the front yard was doing so well, we decided to tackle a little project for the back yard that we had been putting off. We are now the proud owners of a raised herb garden.
My husband and his grandpa used a $100 budget to build us a little vegetation haven in our back yard. We spent $35 for wood, $30 for soil, and $35 on plants and seeds. Now we have this beauty:
Within that 24 square feet, we have basil, chive, cilantro, and tomato plants. We also have oregano, rosemary, thyme, dill, and garlic seeds. I have no idea if we’ll make our $100 back in food or not with this hobby, but I honestly don’t care.
I think it looks awesome and the idea of actually producing our own anything seems pretty dang cool to me. My husband has already enjoyed using fresh cilantro (too spicy for me) and we’ve both already used some of our basil.
Now I just need to make sure to water this and keep our small dogs out of it…we’ll see…
Have you budgeted any spring additions into your yard or personal space?
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