Firm Hope In a better tomorrow!

Money Magazine published a great articled on how to make your money last after you retire. You can find the original article on CNN. This is some good advice for all of us.

Figuring out how to draw secure retirement income from a portfolio is a challenge in the best of times; today it’s made more complicated by fear. Having seen the worst-case scenario unfold in the past year, you’ve probably gone into loss-avoidance mode. But deflecting market risk leaves you vulnerable to inflation risk — and the risk that you’ll outlive your money. So hiding in cash won’t save you.

“No one investment can protect you from every risk you’ll face,” says John Ameriks, head of Vanguard Investment Counseling & Research. What you need, rather, is a basket of investments that provides:

1. Stable income you’re not likely to outlive.

2. The potential for that income to grow to beat inflation.

3. The ability to access cash to meet unexpected needs.

4. Adequate protection from market downturns.

Here are three smart strategies to achieve those goals. The second offers the best chance of making your money last; however, you’ll lose access to a big chunk of your savings. The others give you more control, but less certainty. There’s no free lunch in retirement — but the menu that follows presents some interesting options.

Strategy 1: The traditional stock-and-bond portfolio

YOU’RE A CANDIDATE IF …

You have enough income from Social Security and pensions to cover most of your basic expenses (so you could weather a market storm) and/or you’re confident in your ability to manage your portfolio.

THE PREMISE: You invest in a diversified portfolio of stocks, bonds, and cash that has the potential to generate current income and capital gains. You pull out money as needed, starting off with a 4% annual withdrawal — $40,000 on a $1 million portfolio — then increasing the dollar amount by the inflation rate each year.

Done correctly, this gives you a 77% shot of your money lasting 30 years, says Ibbotson Associates. The higher the withdrawal rate, the lower your odds. So this strategy may not work if you need more income than 4% would provide.

THE DRAWBACKS: A sizable loss early in retirement could undo you. If your portfolio loses 20% the first year, the chances of your savings lasting 30 years could drop to roughly 50%. Alternatively, if the market does well over the long run, you could be left with a huge sum late in life, so you would have lived more frugally than you had to.

HOW TO PULL IT OFF: Allocation is key. Going 100% into bonds might protect you from a market meltdown, but such cataclysms are rare. And you’d lose out on inflation protection. Loading up on stocks gives you a better shot at increasing your income, yet you may get mauled by a bear market. So aim for the middle ground: For someone just entering retirement, a broadly diversified fifty-fifty stock-to-bond blend like the one in the chart above, right is a reasonable starting point.

You also have to be flexible with withdrawals. In a declining market you may have to skip the inflation boost or scale back the amount you draw down. Conversely, if the markets go on a run, you may be able to take more. Check yearly at T. Rowe Price’s Retirement Income Calculator.

Finally, be strategic in the way you tap assets. Start with taxable accounts; then tax-deferred (401(k)s and traditional IRAs); then tax-free Roths. That way the latter accounts compound longer without the drag of taxes, so you can build bigger balances and draw more income over time.

Strategy 2: Stocks, bonds – and an immediate annuity

YOU’RE A CANDIDATE IF …

You need more income for basic expenses than you’ll get from Social Security and pensions. Or you’d like to avoid subjecting all your savings to market volatility.

THE PREMISE: Invest a portion of your savings in a lifetime immediate annuity, an insurance product that will send you fixed monthly checks for as long as you and/or your spouse live. You’ll manage the rest of your portfolio as in Strategy 1. The payoff: You’ll have another layer of guaranteed income and still have funds to tap.

This strategy provides longer income security than the first because the payout from an immediate annuity can’t be easily matched by another sure-bet investment. Recently immediate annuities paid out roughly 8% for a 65-year-old man, or about $40,000 a year on $500,000. You’d have to invest significantly more to get the same assured lifetime income from long-term Treasuries. The reason immediate annuities pay so well? Investors’ money is pooled, allowing insurers to essentially transfer funds from early croakers to those who hang on past life expectancy.

THE DRAWBACKS: Once you hand over, say, a few hundred grand for an immediate annuity, you typically give up access to the money. You can’t use it for a new roof or a vacation in France, or pass it down to your kids. Plus, if you’re hit by a bus early in retirement, the annuity will have paid out less than you put in. For those reasons, many people perceive immediate annuities as potentially wasted money.

Another concern: Annuity payments are usually fixed, meaning they’ll be worth less over time because of inflation. A few insurers offer inflation-adjusted immediate annuities, but the payouts start considerably lower.

Finally, while annuities eliminate market and longevity risk, they introduce another risk: Your income security is based on the financial health of the insurer.

HOW TO PULL IT OFF: In reality, money in an annuity is no more “wasted” than the premiums you pay to insure your house. So try to get over that psychological hurdle, since this strategy presents your best chance of maintaining income.

To make it work, you want to devote enough to the annuity so that the income, along with Social Security and pensions, covers your basic expenses. But you don’t want to go overboard, as you’ll lose too much liquidity. Plus, you’ll need to use what’s left to try to beat inflation, since your annuity payments won’t.

There’s no one “right” mix. Splitting savings fifty-fifty between an immediate annuity and a diversified portfolio can provide the same 4% inflation-adjusted income as in Strategy 1 — but with a 99% chance of lasting 30 years. If you can live with less certainty, you can boost your income to, say, 4.5% by drawing more from your portfolio. Or, you could invest less in the annuity.

Consider buying in stages. That prevents you from over-committing and from investing all your money when interest rates — which drive payouts — are lowest. To mitigate the risk of insurer failure, stick to companies highly rated by Standard & Poor’s and A.M. Best, then spread your money among two or three companies. Check at nolhga.com that the amount you’ll invest with each company is covered by your state’s insurance guaranty association.

Strategy 3: All of the above, plus a variable annuity

YOU’RE A CANDIDATE IF …

You need more income than Social Security and pensions will provide, but you want access to more of your savings than Strategy 2 allows.

THE PREMISE: While maintaining a stock/bond portfolio, you’ll also invest a portion of savings in an immediate annuity and a portion in a variable annuity with a guaranteed lifetime withdrawal benefit (a.k.a. VA with GLWB), an investment account promising a minimum withdrawal for the rest of your life.

In a VA with GLWB, you choose the investments, within limits. You can dip into the account as needed. And you can typically leave the greater of (a) the account balance or (b) your original investment minus withdrawals to your heirs. So it’s more flexible than an immediate annuity.

The other advertised benefit: Your income has the potential to grow if your investments appreciate. Say you invest $250,000 and are guaranteed 5%, or $12,500 a year. If, on your contract anniversary date, a rising market has pushed your balance to $300,000 after fees, your 5% will be applied to that amount, boosting your income to $15,000.

Even if a market crash later knocks your account to $200,000, you’re still guaranteed 15 grand (though if you want to cash out, you’re limited to the actual account value).

THE DRAWBACKS: Flexibility comes at a price. First, variable annuities pay significantly less than immediate annuities, only about 5% for a 65-year-old. Second, the plans come with such high fees, often 3% or more a year, that it’s difficult for your account value to grow at all, let alone keep pace with inflation. Third, though you can draw more than your guaranteed amount from the account, doing so will reduce your income for future years. Last, you face the same insurer risks as in Strategy 2.

HOW TO PULL IT OFF: The high fees and low payout of the VA explain why you need an immediate annuity in the mix: Without it, the odds of maintaining your target income are slightly lower than with a stock/bond portfolio alone.

Together you want the payouts, along with Social Security and pensions, to cover your basic expenses. So how much in each? The more you put in the variable annuity vs. the immediate, the more of your assets you’ll have access to.

In exchange, you’ll settle for a lower guaranteed payout. A reasonable mix: Put 25% of savings into an immediate annuity, put 25% in a VA, and invest the other 50%. That gives you a 92% chance of getting the income you want for 30 years. You’ll end up giving away more of your savings to fees than with the other strategies, but, alas, you have to pay for security one way or another.

If a collector contacts you about a debt, you may want to talk to them at least once to see if you can resolve the matter — even if you don’t think you owe the debt, can’t repay it immediately or think that the collector is contacting you by mistake. If you decide after contacting the debt collector that you don’t want the collector to contact you again, tell the collector — in writing — to stop contacting you. Here’s how to do that:

Make a copy of your letter. Send the original by certified mail, and pay for a “return receipt” so you’ll be able to document what the collector received. Once the collector receives your letter, they may not contact you again, with two exceptions: a collector can contact you to tell you there will be no further contact or to let you know that they or the creditor intend to take a specific action, like filing a lawsuit. Sending such a letter to a debt collector you owe money to does not get rid of the debt, but it should stop the contact. The creditor or the debt collector still can sue you to collect the debt.

In today’s economy, many people are looking for a new job or a second job to help supplement their income. Thanks to online job posting sites, it’s never been easier to surf the Web for your next career. Unfortunately, this convenience has also led to a slew of scams that take advantage of job seekers by stealing sensitive personal information — the first step of identity theft. The prevalence of fake job ads has increased in recent years. While a number of these scams are quite elaborate and can often times look legitimate, there are ways to tell real job opportunities from tricky identity theft tactics.

Whether it’s under the guise of a background check or a work-at-home opportunity, when it comes to online job searching, there are many potential identity theft scams. Usually, however, they tend to share certain aspects in common that can serve as a red flag.

• Avoid any circumstance where a company asks for your Social Security number, bank account numbers, PIN, driver’s license number or other sensitive personal information up front. They may ask for this information in order to do a “background check” or in order to grant you access to parts of the company’s site. In reality, these are just tactics to get your personal information. Almost no company would hire you from your resume alone, sight unseen. Don’t let your excitement about a potential job opportunity cloud your good judgment.
• Keep your eyes peeled for poor spelling and grammar as well as jobs based out of developing countries. While there are certainly jobs available across the world — and none of us are immune to the occasional typo — these factors may be able to tip you off to a job scam. If anything about the listing seems suspicious, look into it further.
• Consider opening a separate e-mail account from which to submit your resume and apply for jobs. This will help reduce the incidence of spam and the potential for phishing (fake emails that appear to be from a reliable source designed to acquire personal information). It can also help you keep all of your information consolidated and easy to access.
• When in doubt, research the company to which you are applying thoroughly. Most reputable companies should have a presence on the Internet beyond a single Web site (anyone can create a fraudulent site). Similarly, make sure that your contact person actually works for the company in question. If you can’t discern this from the Web site, feel free to call the company’s main line and ask for this person. Be wary of any personal e-mail addresses or phone/fax numbers with area codes inconsistent with the company’s location.
• Finally, avoid positions such as “Payment Representative” or “Accounts Receivable Clerk” for any but the most reputable companies. A number of “money mule” scams use unsuspecting victims to transfer laundered money, leaving the victim a responsible party and vulnerable to legal proceedings.

SOURCE: Experian

What happens when two incomes become no incomes? This was the topic that Debra Donston-Miller recently tackled. She found that coordination and flexibility are the keys, according to couples who are working their way through dual layoffs.  Here is her article …

Fourteen million Americans are now out of work, nearly one in every 10 American workers. Among those is Charley Gosse of McLean, Va. In late 2007, Gosse was laid off from his job as chief financial officer at a nearby private school and has been in search of a job ever since. Also among those 14 million is Laura Gosse, who was laid off in January from her job as vice president of an online marketing company.

Laura and Charley were once dual wage-earners in a two-income family that also includes two young daughters. Now Laura and Charley Gosse are tightening their belts to make ends meet on dwindling severances, savings and unemployment benefits while conducting dual job searches for a no-income family. They’re not alone.

More than 151,000 two-income families became no-income families in 2008, the latest year for which statistics were available, raising the total to 663,000, according to the Bureau of Labor Statistics. That number was up 29 percent from 512,000 in 2007.

For the Gosses and others facing two layoffs and two job searches, the experience requires more than just a plan to save money. A dual job search, said experts and families who have experienced it, requires a different job-search strategy. Any plan must support and coordinate resume writing, interview scheduling and traveling. It must also take into account potential decisions about whether to relocate or accept an offer that could change life for every member of the family.

Adding structure and support

For the Gosses, it was mainly a matter of finding ways to support each other search and accommodate two schedules.

When Charley Gosse was laid off in late 2007, the family immediately went into cost-cutting mode. Laura’s salary covered expenses, but she and Charley didn’t know how long he would be out of work and so they went into “complete savings mode.”

The couple cut back on lots of different things. They eliminated dinners out and vacations, and they let their live-in au pair go since Charley was home and could care for the children while Laura worked.

When Laura was laid off in January, they took belt-tightening to a new level.

“We both received severance of different, varying lengths, and (by that point) we’d been frugal for a year,” she said. “So, it was just like, ‘OK, let’s tighten the belt a little more.’ ”

The bigger challenge was managing what was now two ongoing job searches.

“We both started looking for full-time work,” Laura said. “Charley was staying home because of my situation, and when that changed, we both had to concentrate on looking for jobs.”

Laura said the parallel job hunt got off to a bit of a rocky start: “We were both doing our job hunting. (Our younger daughter would come home from preschool), and we didn’t really have any structure. We felt bad that we were both trying to figure out our way and she was just kind of playing by herself.”

Realizing that more structure was key to managing two job searches and a family, Laura and her husband worked out a schedule where each worked at the job hunt every other day while the other held down the home front.

“That’s the model of what we would want people to do,” said Donna Spellman, the director of Self Sufficiency Services at Family Centers of Greenwich, Conn., a human-services agency that, among many other things, provides career and family counseling.

“If one person is staying behind with the kids, focusing on keeping things moving along smoothly, that person is creating space for the other person to do their thing,” Spellman said. “And perhaps tomorrow or the next day, they switch. But it means that everybody’s truly doing their part. They’re not scrambling, and they’re not saying, ‘I thought you were going to stay home!’ It’s not about that.”

Flexibility and part-time work

While Laura and Charley found that structure was key, they also learned that they had to remain flexible.

Their flexibility was put to the test recently when Laura obtained a part-time job that took her away from home three days a week. Now, “the days that I am home, I give [Charley] those days to do what he needs to do so we can keep moving forward,” she said.

Laura added that she and Charley “switch off” when necessary — for example, when an interview or meeting comes up.

Family Centers’ Spellman said it is critical that both job-hunting partners demonstrate this kind of flexibility.

“It will happen that somebody’s going to get a call that’s going to be very spur of the moment — ‘I’ve got an interview, and I’ve gotta go,’ ” Spellman said. “The partners have to be flexible as much as possible.”

Laura and Charley have been working together so that each of their job-hunting strategies, resources and skills can be leveraged by the other. For example, Laura showed Charley how to use the LinkedIn network, and the couple reviews each other’s resume and cover letter before sending them out.

The Hudgins family

Another no-income family, Lavoyed and Cheryl Hudgins, are also sharing the load.

Lavoyed was a special assistant to former Kentucky Gov. Ernie Fletcher, managing 800-plus employees and a budget of $130 million. Cheryl was an executive assistant for Fletcher, and before that she worked for another former governor and an Army general.

After Gov. Fletcher lost his run for re-election in November 2007, the new governor dismissed Lavoyed and Cheryl, along with other members of Fletcher’s staff.

Lavoyed said Cheryl and he weren’t terribly worried at the time they were let go, as Cheryl found a good job with benefits shortly thereafter. However, that job happened to be in the automotive industry, and Cheryl was laid off about two months ago.

Lavoyed, who said he and Cheryl have extended their job search and will consider relocating, stressed the importance of mutual support in a two-person job search.

“We’re extremely fortunate in that we have a wonderful, solid, strong relationship,” he said. “As a matter of fact, when she was laid off, I think it actually helped me because it helped me stop focusing just on myself. I had to be strong for her at that point.”

That kind of mutual support has bolstered the dual job-hunting Gosse couple, as well.

“There’s a lot of stress when one parent is out of a job; when two parents are out of a job, clearly that puts a lot of different stresses on the whole thing,” Laura Gosse said. “But it has not been as stressful just in terms of working out the mechanics with my husband. We’re compatible, and we work well with each other. Both of us have been accommodating with each other.”

Lavoyed said he and Cheryl, who have three grown children between them, enjoy their time together but also recognize the need for time apart.

“Being together 24/7 has not been an issue for us,” Lavoyed said. “But we do realize that there are times when we need a few hours apart. No matter how much you love each other, you need a little break once in a while. So, we try to consciously employ that tactic.”

Double the stress

In today’s economy, the job search can be prolonged, a fact that is all too familiar to both the Gosse and Hudgins families. When not one but both members of a couple are conducting such a search, motivation and enthusiasm can be tough to come by as anxiety sets in further.

Spellman and other experts interviewed by TheLadders stress the importance of remembering that the situation is temporary.

“For most people, it was just bad timing, bad luck,” Spellman said. “It happens. There’s never a good time, but it is temporary.”

“The mind has to change the concept of, ‘It’s going to take me a while to find a job,’ ” said Kevin Skinner, who has a Ph.D. in marriage and family therapy and is an author and radio-show host. “’It’s not a matter of if, but a matter of when I get that new job.’ ”

Family Centers’ Spellman said she understands that it can be difficult to maintain a positive attitude under such difficult circumstances, but that such positivity could be the difference between landing a job and not landing it.

“Attitude is three-quarters of it,” Spellman said. “It’s not just, ‘Do you have the hard skills?’; it’s ‘Do you click on an attitude level or on a personality level?’ And so a healthy attitude and a positive, upbeat personality are going to really carry and enormous amount of weight — and that’s going to be both at home and in the workplace.”

“It’s only temporary”

Yet when both members of a couple are out of work, there may be no financial fallback. Even couples with healthy savings and severance can’t help but wonder and worry about making ends meet.

When those ends aren’t quite coming together, it’s important to put aside feelings of guilt and blame, Spellman said. Remember that you didn’t ask for this situation and that it’s only temporary.

“You have to put your pride aside and be OK with it,” she said. “The guilt, the blame — those are just wasted emotions. It’s too consuming, and it’s really not about that.”

Spellman said the United Way, public libraries and regional Departments of Labor are great sources of information about available services.

“This is not forever,” she said. “When the tables turn, you can be the one to help support somebody else.”

Laura and Charley Gosse are working together to make it through this rough spot as they look ahead to their family’s future.

“I remain hopeful,” Laura said, “and he does, too.”

CNN has a great tool on their website to see how healthy your finances are. Check your financial health!

David Perry, a longtime headhunter, says you’re wasting your time if you’re looking for job postings online. And he should know: he’s often the guy on the other side helping companies lure new talent. Perry, who’s based in Ottawa, says that in the last 22 years he has accomplished 996 searches totaling $172 million in salary. And the bottom line in today’s economy, he says, is you have to tap the “hidden job market.”

Perry’s also the co-author of “Guerrilla Marketing for Job Hunters” and he recently spoke with Fortune.

Just last month, Bank of America CEO Ken Lewis warned lawmakers at a high-profile Congressional hearing on the government’s $700 billion rescue plan that he had no doubts 2009 would be an “awful year” for the credit card industry.

What’s the “hidden job market”?

When companies say, ‘We have a hiring freeze,’ that doesn’t mean they’re not hiring. It just means they’re not adding headcount. Every year there’s 20-25% turn over. So in a 1,000-person company, 200 or 250 people are going to turn over, either through attrition, or someone moves. Those companies are still hiring but they don’t want to tell you.

So how do you find these jobs?

What you have to do in a recession is map your skills to employers to where you know they have a problem you can solve. My advice to job hunters is pick 10 to 20 companies, no more, and pick companies you’re interested in, and that you think you can add value to. That requires researching companies, and so that list may take you two weeks. If you’re trying to crack the hidden job market and you know the job position you want reports to vice president, find that vice president on LinkedIn and look at his profile to see who else he’s connected to and go ask them, ‘What’s this guy like to work for?’ Do the research before you even pick up the phone.

How can you get someone’s attention?

We can go into billboards, sandwiches – that stuff only works once. It’s only for one person who figures it out once, once in a city. If you’re looking for fun stuff, we have this thing called the coffee cup caper, 30% of the time it will result in an interview. You send an employer a coffee cup with a little $5 swipe card with a little note that says, I’d like to get together and talk with you over coffee. I’ll be calling soon. And you send it by U.S. post two day delivery, and that gets registered. So when they’ve signed for it, you wait about 20 minutes and then you call them. And then you go, Hi, I know you just got my package.’ You’re proving you’re imaginative and creative.

What something people should avoid during a job interview?

This drives me insane: I’ve seen people mentally deciding in the interview whether they want the job. That’s the last place to decide. You go into an interview, and you sell like your life depends on it. You’ve got to get the job first. I’ve seen it thousands of times. There’s this point in the interview, where people go ‘Hmm, do I really want this? You can see their body change. The employer picks it up and it’s gone. If the employer is telling you, ‘I love you,’ and you’re not saying ‘I love you too,’ it’s over with.

How about following up afterwards?

If you really like the opportunity, don’t go home and write thank you very much. Go back and write a letter that says, upon further reflection of what we were talking about, here’s what I bring to the table, here’s how I see myself fitting into the organization, including a 30-60-90 day plan.

How can someone attract a recruiter’s attention?

You have to go to ZoomInfo and LinkedIn and create a profile. All corporate recruiters and probably 20% of the headhunters in America have ZoomInfo accounts. When we start a search, companies aren’t going to advertise. The headhunter goes to ZoomInfo, types in requirements that we need, like skillset, degree, city, functional title, and up will come anywhere from a hundred to several thousand people who fit that criteria. Then we go to LinkedIn and run the same search. If you’re in ZoomInfo with a picture, we’re going to call you first. Just reverse engineer what recruiters are doing so you get found.

How can you really impress a potential employer?

It hasn’t worked in years just to bring in your resume, except only in the most junior positions. I concentrate on directors to CEOs, and the last interview for us regardless is always a Power Point presentation of what you’ve learned, pain points, and how you intend to fix that. Everyone talks about being a great leader and great communicator, so prove it. Don’t go into an interview and treat it like it’s just another business meeting. Your career is your biggest asset now – because it’s certainly not your house.

by Jia Lynn Yang. Copyrighted, Fortune. All rights reserved.

Unlike a fixed monthly cost such as your mortgage or car payment, the amount you spend on groceries each month is somewhat flexible. While the common advice of clipping coupons and buying generic brands to save money while shopping is sound, by far the best way to truly keep your grocery shopping expenses under control is by understanding how grocery stores entice you to spend more than you really want. By fully understanding the ways grocery stores encourage you to spend, many of which you probably never even noticed before, you can combat their strategies and spend money only on the merchandise you really need.

Although a grocery store may appear to be simply a place to purchase food and other household necessities, in reality it’s a cutting edge example of “how to sell more than consumers really need.” Since you are the consumer, it’s important that you realize these sales tactics so that you walk into a grocery store to get only what you need while avoiding everything else that the grocery store wants to sell you. Here are some ways that grocery stores manipulate you into spending more than you had planned and some simple steps you can take to counter them:

Smell: One of the first things you’ll notice when you enter a grocery store is the mouth-watering smell. There is a specific reason why grocery stores smell of freshly baked goods, and also why the bakery is almost always found near the store entrance. The reason is that a bakery making bread and desserts gives off an enticing smell, and that smell is likely to make you hungry. The grocery store also knows that if you feel hungry while you shop, you are likely to spend more money – a lot more – than if you are not hungry.

A simple way that you can combat this is by going grocery shopping only after you have had a meal and are full. If timing doesn’t allow for you to do this, at least drink a couple of glasses of water before leaving to make you feel full before shopping. Shopping while you’re full makes it much easier to resist the great smelling temptations that the grocery store will flaunt in front of you.

Overall Store Layout: Did you ever notice that when you only need to buy a few staple items, you have to travel the entire grocery store floor in order to get them? While one might assume that the convenience of putting basic staple items in the same general area would make happier customers, grocery stores know that the longer that they can keep you in the store, the more money you are likely to spend. They also know that making you walk as far as they can inside the store will make it more likely that you’ll pick up impulse items. Stores are specifically designed in such a way as to make you spend as much time as possible inside them and walk the entire store floor to get the basic staples that everyone needs.

Although there is no way around going to the far corners of the store to get the groceries you need, you can avoid the trap of impulse purchases on the store floor by taking the time to make a list of the items you need and sticking to it when shopping. Getting into the habit of making a single trip once a week to take care of all your grocery shopping needs instead of several smaller trips throughout the week will also greatly reduce your time in the store and the chances that you’ll buy items you don’t really need.

Item Display Layout: Manufactures of brand named products pay hefty stocking fees to stores to have their merchandise placed on the shelves at adult eye level (and child eye level in the case of products aimed at children such as cereal). Manufactures are willing to pay these prices because they know that you are much more likely to purchase something that you can easily see as you are walking down the aisle than something you have to stop and search for. The result is that the products placed at eye level are usually the most expensive.

Before grabbing the first item you see, take a few seconds to look at the upper and lower shelves. Similar products are placed together and simply looking will often reveal the same product at a much better price.

“Sale” Merchandise: Grocery stores will advertise a certain number of items at rock bottom prices (called “loss leaders”) to get you to come to the store. While these can be genuine bargains, don’t get fooled into thinking that everything that has the words “sale” or “bargain” above it is really that. While aisle ends are reserved for these “bargains,” they aren’t always the deals they seem to be and the discounted products are often displayed along side higher price products. You can sometimes even find similar products in the regular aisle section that are less than the end of aisle “sale” merchandise.

The important thing to remember when grocery shopping is to focus on the price of the product and not all the fancy advertising and slogans promoting the product. Take the time to check the other brands and see if there is a better deal. Also, remember that if you weren’t planning to buy the item and you don’t really need it, then it really isn’t a bargain for you no matter what the price. Only consider those items that you regularly use and you have a need for.

Product Appearance: Product packaging at grocery stores is bright, usually in red and yellows since these colors attract the eye. Just because something grabs your attention, however, doesn’t mean that you have to buy it. Keep focused on your shopping list and don’t get distracted by products you don’t really need.

Packaging will also be much larger than the actual product for many food items. Manufacturers know that shoppers assume that larger sized packaging equals a better deal. It would make sense since bulking items together saves the manufacturer on packaging, shipping and stocking which they can pass along to you. With a mantra “buy in bulk” now firmly grounded in most people’s minds as a way to save money, manufacturers are taking advantage of this. While still not the norm, more and more larger sized packages are less of a deal than their smaller sized counterparts since manufacturers know you will make the above assumptions and probably not compare the per unit cost.

Before grabbing the largest box of a product, take the time to calculate the per unit or per weight cost. More often than you would expect, smaller packages of an item are actually a better deal than buying the same item in a larger package.

Check-Out Layout: The check out aisle of a store is like a mini mart in itself. This is because grocery stores know that they have a captive audience while you wait in line to pay for your groceries. They squeeze in every little thing that might remotely peak your interest to rack up a large amount on impulse sales.

The best way to avoid these temptations to is plan your shopping during off peak hours. Avoid the weekend if at all possible since this is when grocery stores are most crowded, as well as the evening when everyone has just gotten off work. With many grocery stores now staying open 24 hours a day, late night and early morning trips when the aisle and check out lanes are practically bare are the perfect time to get in and out of the grocery store as quickly as possible.

By taking the time to understand how the grocery stores try to influence your shopping and spending habits, you have now put yourself in control. Utilize the suggestions about how to counter the grocery store’s selling techniques and you will be able to control your grocery spending to a much greater extent and should have a much easier time keeping to your monthly food budget.

Copyright (c) by Jeffrey Strain

The holiday season seems to lure us into overindulgence. Eating too much stuffing or drinking too much eggnog is one thing. Charging too many gifts on your credit cards is another. Although the holiday season may entice you to spend more than you can afford, a little self-discipline can help you keep your purchases to a manageable limit.

Why You Should Limit Your Holiday Card Purchases
Credit cards are only an illusion that can buy more gifts than you actually can afford. Here’s why you should limit your credit cards purchases this holiday season.

• Gifts bought on credit end up costing more. Add in months of finance charges and you’ll ultimately pay more for your gifts than you would if you’d used cash.
• Credit scores fall from high balances. Spending more than 30% of your credit limit will cause your credit score to drop.
• The best laid plans…. Unexpected post-holiday expenses might postpone your credit card payment plan, lengthening your credit card debt.

By sticking to a few spending principles, you can keep your holiday spending to a minimum and avoid paying for holiday gifts until the next holiday season.

How To Avoid Holiday Debt
When you’ve made the decision to keep your credit card purchases within a reasonable limit, here’s how to put it into practice.

• Save up. Spending cash instead of using credit for your holiday purchases allows you to avoid holiday debt all together. If you haven’t started saving, put aside something each paycheck starting now and use that to finance your holiday purchases.
• Set a budget before you shop. Setting a spending limit and sticking to it will keep you from overspending. Be disciplined and don’t go over your budget, no matter what.
• Make a list. Santa makes a list and checks it twice, so should you. Even though you might feel compelled to splurge on everyone in your life, you don’t have to. People appreciate simple and meaningful over expensive and useless.
• Don’t shop for yourself. Avoid the “one for you, one for me” shopping mindset. You’ll end up spending double what you would had you shopped only for the loved ones in your life.
• Ignore “big” sales. More often than not, they’re not really sales at all. Those “Buy 2, Get 1 Half Off” deals only trick you into buying more than you would otherwise. Remember, stick to your list.
• Shop online first. The internet makes it easy to shop around. It also makes it harder to buy on impulse. Since most retailers have inventory on their websites, you can decide exactly what you want to buy before going to the mall.
• Leave your credit cards at home. Without your credit cards, you’ll have a hard time charging them up. If you must use credit for your purchases, pick one credit card and stick to your spending budget.
• Don’t buy if you can’t afford to pay. Keep in mind that when you use credit, you’re borrowing from your future income. You know your finances better than anyone. Only charge what you can afford and you’ll avoid paying on your holiday debt until the next holiday season.

SOURCE: About.com

Paying down your debt can be a great tool to help you stay on track financially, especially when the economy slows. But how do you know which debts you should tackle first? Where do you put your extra money each month so that it will make the most difference? Below we’ve provided a few tips to help you prioritize your debt pay-off strategy.

Priority #1: High-interest-rates

No matter if you have a little or a lot of debt, you’d probably rather spend your money on something besides huge interest fees every month. That’s why most financial experts agree: face those balances with the highest annual percentage rate (APR) first. This tactic can save you money in both the short- and long-term.

The strategy is simple: Pinpoint one high-interest account until it’s paid off, then move onto the debt with the next-highest interest rate. And repeat.

Priority #2: Small balances

Removing a bill or two from the monthly pile can free up at least a few more dollars a month fairly quickly. So if you have several balances that are small, consider paying those off at the same time you are paying down the high-interest-rate accounts.1 Taking care of those easy-to-address, lower balances can give you additional encouragement because you’ll see results right away.

Priority #3: Secured debts

Secured debts are those that are backed by some sort of asset, such as your home or automobile. Unsecured debts, such as credit cards, are not tied to any asset as a basis for the loan. Secured debts tend to be for larger sums of money than unsecured debts, meaning you likely will be paying interest on these types of loans for a longer period of time than smaller, unsecured debt amounts.

That’s why making extra payments on a secured debt like your mortgage has the potential to really work in your favor. By making additional principal payments, you may be able to pay off your loan faster — shaving years off your loan term — and helping you save hundreds or even thousands of dollars on interest payments down the road. Plus, if you pay off your mortgage early, that gives you more money by the end to invest in things like retirement or other savings accounts.

During these tough economic conditions, many of us are looking for the quick fix for our money problems. We often short cut our nutrition by buying cheaper, non-healthy food items. Now, more than ever, it is important to keep your body healthy to avoid costly medical bills or missed work.

MyPyramid.gov is an excellent resource when looking to improve your diet. The website is maintained by The Center for Nutrition Policy and Promotion, an organization of the U.S. Department of Agriculture, which was established in 1994 to improve the nutrition and well-being of Americans.

Here are a few of their healthy eating tips -

• Buy vegetables that are easy to prepare. Pick up pre-washed bags of salad greens and add baby carrots or grape tomatoes for a salad in minutes. Buy packages of veggies such as baby carrots or celery sticks for quick snacks.
• Use a microwave to quickly “zap” vegetables. White or sweet potatoes can be baked quickly this way.
• Keep a bowl of whole fruit on the table, counter, or in the refrigerator.
• Popcorn, a whole grain, can be a healthy snack with little or no added salt and butter
• Freeze leftover cooked brown rice, bulgur, or barley. Heat and serve it later as a quick side dish
• Consider convenience when shopping. Buy pre-cut packages of fruit (such as melon or pineapple chunks) for a healthy snack in seconds. Choose packaged fruits that do not have added sugars.
• Dried fruits also make a great snack. They are easy to carry and store well. Because they are dried, ¼ cup is equivalent to ½ cup of other fruits.
• Buy fruits that are dried, frozen, and canned (in water or juice) as well as fresh, so that you always have a supply on hand.
• Set a good example for children by eating fruits, vegetables, and whole grains with meals or as snacks.