How to save money.
TV ClubHouse: Archives: How to save money.
Rabbit | Thursday, August 07, 2003 - 02:51 pm     hmmm ... Luxury suite or floorside tickets ... where to watch from? Hey wait, what are the chances the Pacers will ever make the playoffs again anyway?!? |
Pamy | Thursday, August 07, 2003 - 02:52 pm     LOL Goddess! I forgot you just had a bad Disney experience! I never did see your rant about it though |
Goddessatlaw | Thursday, August 07, 2003 - 02:56 pm     I'm still letting the rant marinate, Miss Pamy. I get much more evil (and accurate) when I'm calm. I intend a rant for the ages. Rabbit, we got a Bird back in the house so we're hoping for great things. |
Bastable | Thursday, August 07, 2003 - 03:10 pm     GAL, plant the rant! I may have to go to WDW in a week and I'd love to have read it. |
Twinkie | Thursday, August 07, 2003 - 03:23 pm     Being from Orlando and having been to WDW at least 30 times I'm dying to hear GAL's rant! I know I could rant forever about what it did for the traffic there but it also brought no end to the jobs in Orlando. It was the first theme park and then came Sea World, Universal Studios, Epcot, Hard Rock Cafe and Hotel, and the list goes on. |
Goddessatlaw | Thursday, August 07, 2003 - 03:33 pm     Twinkie, honey - love you. Prepare to be o-ffended. The only people spared in my rant will be the bartenders, who were the only ones who understood us. |
Zachsmom | Thursday, August 07, 2003 - 03:34 pm     I love Walt Disney World! I am saving to take Zachary for his next birthday! Magic Kingdom I am not impressed with (I have Disneyland here in Cal) but I love Epcot Center! |
Squaredsc | Thursday, August 07, 2003 - 04:36 pm     it figures the bar tenders would be spared. running out before gal catches me... |
Zachsmom | Thursday, August 07, 2003 - 05:13 pm     not only spared...but the only ones who understood them...:::follows square::: |
Pamy | Thursday, August 07, 2003 - 06:12 pm     LOL!!! (say what you will about Disney but I bought at about 16.00 a share less than a yr ago and it is over 21.00 today!!) |
Sia | Thursday, August 07, 2003 - 07:49 pm     Ocean, you mentioned up-thread that we were giving suggestions for how to spend less money rather than sticking strictly to how to save money. Certainly! I think you have to curb spending and pare your budget down to the essentials in order to have some money left over to save!! A Christmas Club account is a simple savings account that allows you to put away some cash for Christmas shopping. The bank sends you a check for the amount you've saved in October so you're just in time to find great things on sale then. The percentage isn't much diff from regular passbook savings. It's just a good place to keep your Xmas shopping money because it's not easily accessible; if you withdraw your Xmas Club $ before the payoff date in Oct, you pay a penalty. I love having a Christmas Club. When my DH and I were first married and we had literally no money, this was the only way I had any money to spend for Christmas gifts. I put $5 into my account whenever I found extra money or whenever I rolled up our coins and it did add up by the end of the year. For over ten years I've kept track of every penny I spend in ledger books. I log my cash/credit/check payments in these books in order to be able to see where our money goes. I think most people don't know just how much money they actually spend. |
Juju2bigdog | Thursday, August 07, 2003 - 10:23 pm     Which came first? The chicken or the egg?
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Sia | Thursday, August 07, 2003 - 11:19 pm     Exactly, Juju! That was the point I was trying to get across; you were just more succinct! Thanks. |
Fluff | Wednesday, August 13, 2003 - 10:22 am     Okay, I have a question. What is "good credit"? I truly don't understand the concept. I have a credit card, on which I owe a ton, but I manage to pay off the minimum every month. Is this bad, or does this make my credit look good considering I'm paying something. I truly don't know.  |
Juju2bigdog | Wednesday, August 13, 2003 - 01:31 pm     I'm not exactly sure, Fluff, and maybe someone will come along and be able to answer that one. I can tell you that credit bureaus collect and store information about how much overdue you are on your obligations. So, if you totally missed a payment, that would probably be a black mark. If you have several black marks, that is not good at all. And, you know, of course, that you need to try to get that credit card paid off. Making minimum payments on credit cards is living on borrowed money with a huge interest rate. Paying interest you don't have to is just money down the drain. I'd suggest you try to get off credit cards altogether until you get to a point in life where you know that you can make the payment in full every month without ever paying a finance charge. Then you can use credit cards just for convenience. There is a great non-profit agency called the Consumer Credit Counseling Service. I thought I could find a website for it easily on the internet, but wasn't successful, but then I am in a hurry and didn't stay long. If there is an office of that agency in your area, they are free and very helpful, as well as realistic. And they would know the answer to your question, Fluff. |
Dahli | Wednesday, August 13, 2003 - 02:48 pm     Yikes Fluff! I'm not sure of the answer to your credit question either however I do remember once seeing that by paying items off this way you are in essence buying them 3+ times... so for every ten bucks in merchandise you have, you're paying some company well over $30 for it. When I heard that I realized that continuing that way would never ever allow me to have control over my money plus the 'convenience' of that credit would keep me living from paycheck to paycheck. Just like Juju said getting those paid off every month means no body uses your money but you!! |
Karuuna | Wednesday, August 13, 2003 - 03:39 pm     Fluff, the best way to earn a good credit rating is to borrow a certain amount on your credit card and then pay it off. Then do it again. And again. Each time you do that, you raise your credit rating, but you have to pay it off periodically to raise the rating. Late payments, and making only the minimum payment each month lower your rating. A high outstanding balance month after month, with no progress toward lowering it, also lowers your score. Credit ratings are based on FICO scores, and are given by the 3 major credit rating companies, Experian, EquiFax and I can't remember the last one. The higher your FICO score, the better your credit, and the lower the interest rate you can get on consumer loans. You can get a free credit report once each year (for more than once you have to pay) from each of the three major services (you are best to go to their websites, and call their toll free number. I've had limited success getting the free report by using their website request system.). You can also get a free report when a certain number of creditors have asked them to provide a credit rating, and I think also if you have been turned down for credit. These reports will show what kind of credit you currently have outstanding, and how many late payments you have made. Hope that helps! |
Zachsmom | Wednesday, August 13, 2003 - 03:44 pm     Trans Union is the 3rd Credit Report Agency. It's also worth noting that all three reporting agencies have different credit scores. You can have a higher score at 1 and a lower score at another.It all depends on who your creditor reports to. |
Karuuna | Wednesday, August 13, 2003 - 03:53 pm     THat's what I love about this place! Folks like Zmom come along and patch the swiss cheese craters in my senile brain. Thanks, Zmom! And yes, you can have different credit scores with all three agencies. The whole credit reporting thing can be kind of a racket, and if they screw something up on your report, it can be an absolute nightmare to correct it - even if it's totally false. |
Sasman | Wednesday, August 13, 2003 - 05:08 pm     The credit agencies have their own formulae for calculating the scores and they are a very, very big secret. No one knows exactly what makes your score what it is. But as you've seen, there are certain things you can do to make it go up or down. I heard that just applying to a number of places for a mortgage can make your score go down! |
Pamy | Wednesday, August 13, 2003 - 05:52 pm     The following is from my favorite financial person, Suze Orman's website(each month she puts out a newsletter and this was in last month's edition) Tips for a “perfect” FICO score (but do you need one?) by Sue Simon, Vice President, myFICO.com A question we’re often asked here at myFICO.com is, “How do I raise my FICO? score to a perfect 850?” If you’re in search of FICO perfection, I have some tips for you, and my first tip is, “Don’t worry about getting a perfect score!” A perfect score is simply not necessary for getting the credit you want. If you’re planning a major purchase and want to make sure you get the best terms, ask the lender what your FICO score needs to be to qualify—you’ll probably find it’s in the low 700s. Lenders have widely varying criteria for who gets which loan, so a score that looks chancy to one lender might look great to a different lender. However, if your score is above the national median of 720, you have a good score and it’s likely that you’ll qualify for good rates. So, you may ask, if I have a very good score—say in the mid- to high-700s—will I qualify for even better interest rates if I raise my score to 850? Probably not. Here's my advice—build a good score, maintain it, and don’t worry about perfecting it. That being said, I know there are high-achievers out there who will lose sleep if they suspect someone has a better FICO score then they do. If you’re determined to get the highest score possible, or even if you just want to make a small improvement to your score, a good place to start is by understanding how FICO scores are calculated. Below are the five types of information on your credit report that FICO scores consider, ranked by their relative impact to your score. By understanding what goes into a FICO score, you can start making the credit choices that will improve your score over time. For example, your efforts will be much better spent on paying your bills on time, rather than worrying if you have the right mix of credit types. 1. Payment History Determines approximately 35% of score. When you apply for credit, an important concern for a lender is whether you’ve paid back other lenders on time. Payment information for many different types of accounts are included, such as credit cards, retail accounts, installment loans and mortgage loans. FICO scores also look at public record and collection items such as bankruptcies, foreclosures, court judgments, wage attachments, liens and judgments. Tip: Pay your bills on time—it’s the single most important thing you can do to raise you score over time. 2. Amounts Owed Determines approximately 30% of your score. The amount of money you currently owe is the second most important factor in your FICO score. Simply owing money doesn’t mean you’re a high risk. However, if you have high balances or have spent most of the credit available to you—it may look like credit is controlling you instead of the other way around. Tip: Try to keep the balance low on each of your credit cards, well under 50% of your credit limit. 3. Length of Credit History Determines approximately 15% of your score. Your credit history is like a good wine—if it isn’t spoiled, it gets better with age. You can still get a good score if you’re new to managing credit, but a longer credit history will usually give you a higher score because it shows that you’ve had more experience managing your credit responsibly. Tip: Even if you no longer use your oldest credit card, you may not want to cancel it—using it once or twice a year to keep it active will increase the length of your credit history record. 4. New Credit Determines approximately 10% of your score. Opening several credit accounts in a short period of time can lower your score because it represents a greater risk to your lenders. Each time you apply for credit, the lender requests your FICO score, which is called an inquiry. A lot of inquiries can lead to a lower score. FICO scores treat auto and mortgage inquiries separately and won't ding you for rate shopping. To protect your score when shopping for the best mortgage or auto loan rate, though, try to complete your search within a couple of weeks. Tip: You can check your own FICO score and credit report as often as you want without affecting your score. The only time inquiries can affect your score is when a lender makes an inquiry in response to a request you made for a loan or credit. 5. Types of Credit in Use Determines approximately 10% of your score. Three credit cards, a mortgage and two auto loans? Two retail cards and one installment loan? FICO scores consider your mix of credit accounts and how many you have of each type. It’s not necessary to have one of each to get a high score, though a good track record with different types of credit naturally will help. It probably won't have a big impact on your score unless there’s not much else in your credit file to base your score on. Tip: Only open new credit accounts that you need—if you set out to apply for a wide variety of credit types in hopes of raising your score, it can backfire and actually lower your score. Remember, there are no shortcuts to a better FICO score. If you manage your credit responsibly, your score will improve, but it takes time. And if you’re looking for a perfect score, expect it to be a very long time. |
Melfie1222 | Wednesday, August 13, 2003 - 06:30 pm     Here is the link to the site for Consumer Credit Counseling that Juju mentioned: Credit Counseling Network I got my first credit card right out of high school, and by my early 20's was in way over my head. I used this service and it was one of the best things I've ever done, at least in terms of correcting my own mistakes, lol... some people told me not to, they thought it would look just as bad on my credit report as anything else, and I would never qualify to buy a house, etc., but at the rate I was going I would never qualify anyway. When I read somewhere that even if I never spent on those cards again, and just continued paying the minimum due, that it would take me something like 30 or so years to get them paid off, that was what got me. Do I want to be in my 50's and still paying for things I bought when I was 20 and are long since gone? I don't think so. CCCS was able to reduce or even eliminate the interest on most of my cards, and I made one payment every month for all cards. It worked great for me, and my score did improve. |
Fluff | Thursday, August 14, 2003 - 05:54 am     Thanks everyone! *printing again* |
Fluff | Friday, August 22, 2003 - 10:27 am     Just wanted to say to whoever recommended putting away 10% every paycheck, it's working! I finally have over $10 in my savings account! I think the bank is in shock.  |
Juju2bigdog | Friday, August 22, 2003 - 08:06 pm     Hey, Fluff, it's a start. Gotta start somewhere. Good for you! |
Juju2bigdog | Sunday, September 14, 2003 - 04:20 pm     Got a digital camera? Thinking of getting a card reader so you don't have to plug the whole camera into the computer to look at the pictures? We just got a digital camera for the first time ever. I decided to get a card reader, which would be more convenient than plugging the camera into the computer. So this morning I bid on one on ebay with about 30 minutes to run on the auction. Then I went to read the newspaper. Today is Sunday, the day all the big box stores run their ads. I ALWAYS read Office Max because they are always having good loss leaders on sale with excellent rebates. Wouldn't you know that today one of their items free after rebate is a digital camera card reader. Even if you don't like to mess with keeping track of rebates, it is an excellent price for a card reader. Normally $30, $20 in-store discount, $10 rebate. So, if you don't want to mess with the rebate, it still only costs $10. I was reading this ad at about the exact moment I was winning the auction on ebay. Oh well. I guess I can get the ebay one AND this one, and Bigdog and I will both have one for our separate computers. So, if you would like a card reader for your memory stick/card for your digital camera, get on over to Office Max this week. They have four different kinds, Memory Stick, SmartMedia, CompactFlash, and SD/MMC Reader. |
Draheid | Sunday, September 14, 2003 - 04:41 pm     Juju: A word of caution about card readers. Most that I've worked with require that you install the software for them BEFORE connecting the reader. Be sure to check your documentation for this requirement before you plug it in. FWIW |
Juju2bigdog | Sunday, September 14, 2003 - 05:41 pm     Ooh, thanks, Dra!!! Just got home with the one from Office Max. It looks kind of exciting. It is made by Dazzle and has a software program that will let you make a slideshow and then burn it onto a CD and then play it in a DVD player through your television. Maybe that is rather mundane, but you know I am easily thrilled. The Card reader I bought on ebay is Lexmar, I think, and the seller's ad says it is hot-swappable and "something else" which I take to mean you can maybe just plug it into any pc with Windows 98, ME, or XP, and it will read it without installing software. I'll check it out further when I receive it. |
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