If your family’s growing and you need extra space, get it without buying a new home or building an expensive addition onto your house. Here’s how.

Clear the clutter in every cupboard, closet, drawer and storage area. Evaluate your keepsakes. Scan photos to revive the memory later. Do you really need nine things to remember Aunt Lucy by?

When it comes to furnishings and décor, think vertical. Get as much off the floor as possible to create more space. Reduce the amount of furniture you have. Instead of using plant stands, hang them on hooks.

Simplify and Sell

Get rid of some of your seating, especially if kids enjoy plopping on the floor instead. Remove clutter catchers like extra tables. Minimize the scale of your furniture, too. Sectional sofas and giant coffee tables gobble up more space than separated seating and diminutive end tables.

A friend sold her oak entertainment center/curio cabinets, her children’s outgrown movies, and standard television. She then used that money to buy a wall-mountable flat screen TV with a built-in DVD player and two slim storage towers for her DVDs and found extra floor space without blowing the budget.

My family started keeping electronic records, which eliminated two filing cabinets in the home office. Downsizing from a sprawling desk to a taller, slimmer desk also created space.

On eBay, Craigslist or on a community bulletin board, list items that you wish to sell.  Hosting a garage sale is a perfect way to create some extra space.Search Ebay’s Want it Now section to see if anyone’s looking for your items.

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Maximize Space and Decorate Effectively

Now that you have more room and cash, you can really make strides in expanding your space. Select lighter colors to make your rooms open up visually when painting. Certain things can visually shrink rooms, such as heavy drapes, dim lighting, dark woodwork, busy patterns, and an abundance of knickknacks.

Efficiently use your storage areas. This will make your rooms seem bigger because you have fewer items in sight. Also, as an added benefit, you may be able to thin out more furniture per room.

By adding shelves in large cupboards, hanging shoe holders in closets and using over-the-door hooks, I’m given more closet space and the need for a coat tree is eliminated. I also like cascading closet hooks so shirts, skirts and folded pants use much less space.

Stow more with tables and ottomans that have built-in storage space. For example, using small, freestanding cabinets for nightstands lends us more storage than many tables would. Bunk beds with built-in drawers spared us from crowding the kids’ room with two beds and dressers.

I maximize the space under beds, couches and under the rod in closets. Plastic storage containers provide storage for whatever you want to stow nearby, such as throw blankets, board games, extra sheets, and toys.

Strategic Functionality of Your Rooms

Get more value from each room by multiplying its functions. This strategy may even garner an additional room. To merge his family room and home office and get an extra bedroom, Rich, a Pennsylvania dad, installed a tuner chip in his computer.

It functions as their television and DVD player, which eliminated the need for an additional screen and piece of furniture to house it. They aren’t big TV viewers, so this solution worked well for them.

Tuck a computer armoire in a kitchen or den because when the armoire doors are closed, it blends seamlessly with the room and nixes the need for a separate office.

Dale, a New York dad, gained two new bedrooms and a bathroom for his growing family by finishing off half his basement (check the building codes of your city before making structural changes). By completing most of the work himself with the help of knowledgeable friends, Dale saved quite a bit.

Compared with the cost of buying a larger home or building an addition, selling furniture and things you don’t need to “buy” more functional pieces and dividing large, open spaces to gain rooms still makes plenty of sense.

This has been a guest post by Deborah Jeanne Sergeant.  Deborah writes from her home in Wolcott, N.Y.

You can also find more room in your home by selling unwanted items. Hosting a garage sale is a perfect way to create some extra space.

Most people I know have an innate sense for helping others. We may argue over how much we should help each other or even what the the best way is to help others.

We may discuss the government’s role in helping others versus our local church. But, we often dismiss how our economy is set up to allow us to help others in almost everything we do.

The Three Easy Ways to Support Others

Charity - giving with nothing expected in return.
Buy a Good – buying something with high value for a low fee.
Sell a Good – selling something with a low cost at a high price.

How These Three Support Others

Charity

The first thing that comes to mind when supporting each other is charity. I define charity as any time I give something to someone else and expect nothing in return.  For example, you may want to give to the homeless through a local shelter, or you may want to donate to help Haiti earthquake victims. 

Even the great capitalist Andrew Carnegie supported charity, but he understood the importance of giving wisely.

“Those who would administer wisely must, indeed, be wise, for one of the serious obstacles to the improvement of our race is indiscriminate charity” – Andrew Carnegie

When giving money away you are investing in others and your community. Although you receive nothing directly in return, the act of charity may help someone survive another day or get past a road block that is keeping them from living out their God given potential.

Buy a Good

A less understood way of actually giving is buying a good. Every time you buy something from someone you are helping them out. They used their creative talents and abilities to manufacture a product or service for you at some cost and by paying them you are giving them in opportunity to buy something with more value in their eyes in exchange. You still have to be wise when buying something, though. If you buy something that you really don’t want then you are essentially giving away money as charity and should evaluate the decision from the perspective of a charity gift instead of a purchase.

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Sell a Good

The flip side of buying a good is selling one. Just as a buyer helps a seller, the seller is also helping the buyer. When you work hard and create a good that has value to others you are supporting them by giving them an object of great value at a cost that is cheap to them. This is why they buy it. Again, though, you must be wise and only sell things that can be made at a cost lower than the selling price otherwise this is also a charity.

What This Means for You

Remember the joy you get every time you give to someone in need. Now that you know buying and selling also help others you can be happy every you reward a hard worker when making a purchase or provide value to someone when selling a good. Of course, never stop giving. Your investments to those in need will pay off now and forever, but be happy every time you make a wise buy or sell.

Verses to Consider

• Command them to do good, to be rich in good deeds, and to be generous and willing to share. 1 Timothy 6:18
• All hard work brings a profit, but mere talk leads only to poverty. Proverbs 14:23

This has been a guest post by Ryan.  He is the creator of ObsessedAnalytic.com, a blog for young adults helping them Find Time, Save Money, and Have Fun

A long time ago and in a land far far away… well actually it was 1980 and my wife and I, as newlyweds, just moved to Alaska—this is a true story.

I was working for a financially secure and slightly older gentleman who, one day as I was passing by his office, called me in and asked me an interesting question. “What’s the difference between a rich man and a poor man?”

Being young and just starting my career, I thought the answer was rather obvious and so I quipped, “one has a lot of money and the other one doesn’t.” It doesn’t take a rocket scientist to figure that one out.

However, his response back, was somewhat surprising:

The Lesson of the $100 Bill

He stated that the difference between a rich man and a poor man was a $100 bill. He asked me if I had one.

“No,” I answered. He then asked, “how many people out on the street walking around right now do you think have a $100 bill in their wallet, pocket or purse.” I responded, “probably not very many.” He said, “my point exactly.”

He then took his wallet out of his pocket and pulled from it a $100 bill and handed it to me and said, “put this in your wallet, keep it there and know that you have more money in your wallet than most people do, and that if a small emergency comes up, you’ll be okay.”

So I gratefully put the bill into my wallet and left. You know, I actually did feel rather rich, and knowing that a $100 bill could cover about any minor emergency that could come up, like running out of gas or an unexpected business lunch with co-workers or whatever it might be; I really was covered. Back then my wife and I didn’t have a credit card or debit card—just cash and a checking account, and for some reason my wife said I wasn’t allowed to carry the checkbook.

Two weeks had passed, and I was again passing by his office, he called me in and asked if I still had the $100 bill he’d giving me. I lowered my head and said, “the other day I was low on gas and didn’t have any money so I used it to fill the car up.

Once I had broken the bill the remainder went rather quickly.” He chuckled and pulled out his wallet again and handed me another $100 bill and said, “see if you can make this one last longer this time.”

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My first thought was, this isn’t a bad deal we have going here, but he quickly said that this was the last one he was going to give me. Well, again I was back on top of the world feeling rich. This time I kept the bill for almost 6 months before I needed to use it, once again, once it was broken it went fast.

Let’s now fast forward to 2010 where a large percentage of the population of the U.S. carries either a credit card, debit card or some other form of a charge card. Who carries cash anymore?

I went into a Subway the other day and ordered their six-inch, special-of-the-day sandwich, which was only $2.99, and I had to use my debit card to pay because I didn’t even have $3 on me. Is it any wonder that so many people are having financial struggles? Not only because of the current economy but also because of what seems to be an endless supply of money that we really don’t have—credit. This idea of credit, can at some point, come back to bite us hard if we don’t manage it correctly. Here are some interesting credit card statistics.

Credit Card Issuer Statistics

Total cards in circulation in U.S.

• Visa credit: 309 million, as of June 30, 2009 (Source: Visa.com)
• Visa debit: 352 million, as of June 30, 2009 (Source: Visa.com)
• MasterCard credit: 211 million, as of September 30, 2009 (Source: MasterCard.com)
• MasterCard debit: 130 million, as of September 30, 2009 (Source: MasterCard.com)
• American Express credit: 54 million, as of December 31, 2008 (Source: AmericanExpress.com)
• Discover credit: 57.1 million, as of December 31, 2008 (Source: Discover.com)

Americans currently owe $917 billion on revolving credit lines and $69 billion of it is past due, according to the latest Federal Reserve statistics. (Source: www.consumerreports.org, September 2009)

Spending Habits and Controlling Your Money

What’s the biggest difference between now and 30 years ago regarding our spending habits? Yes, 30 years ago many people used credit cards, but many people also carried cash in their wallets. A credit card was only supposed to be used for emergencies or for purchasing large dollar items, limiting the need to carry around large amounts of cash, knowing however, that when the bill came due, it was to be paid off in full, monthly.

So when your cash ran out, buying something else wasn’t an option, you just made do without. People back then understood how easy it would be to get into trouble financially using credit cards excessively. People also know this today; however the idea of doing without, if you don’t have the cash to pay for it immediately, or saving towards purchasing it at a later date ,when you can pay for it in full, has been lost or at least conveniently forgotten.

This idea is still sound financial advice today. When the money is gone, make due with what you have and go without until you have the money to purchase it outright.

How to Stay Away From Financial Trouble

An excellent way to keep yourself from getting into financial trouble is to create a budget and then track your expenses daily.

There are several ways to do this. Create a budget on paper and then jot down, in a note pad, your daily expenses. This is inexpensive but somewhat time consuming.

Another, more efficient way is personal finance software; either a desktop application or an online service. Read “Online Finance Software vs. Desktop Finance Software” to get a better understanding of the pros and cons of both of them. Online personal finance software allows you to easily create a budget and then automatically download your daily transactions.

When your purchases are in excess or getting close to exceeding your budget, you’ll receive an email or text alert warning you to rein in your spending. This will help you stay in control of your money, instead of it controlling you.

Want to feel great each day even if you do have financial stress; since fewer people carry cash these days compared to 30 years ago, tuck a $100 bill into the bottom of your wallet or purse and know that you have more money on you, than most people you’ll meet and pass each day.

Also, see if you can make your $100 bill last longer than 2 weeks or 6 months. It truly is a great feeling.

This has been a guest post from Brent Ropelato from PersonalFinanceManagementSoftware.com, which helps you eliminate debt, track expenses, manage your money, plan for retirement and more.

February 14 approaches quite quickly on the heels of the Christmas and New Year spending sprees and as such you may be dreading the approach of Valentine’s Day this year because you are still struggling with credit card debt, or trying hard to stick to a New Year’s savings plan.

Instead of splurging on your beloved this Valentine’s Day and forgetting all of your financially responsible New Year’s resolutions, check out these 10 tips for an inexpensive, romantic Valentine’s Day:

1 Have dinner at home

Every couple seems to go out on Valentine’s Day.  Instead of sharing a crowded restaurant with hundreds of other couples, all trying to outdo each other, save the cost of the meal and drinks and dine at home. It is easy to create a romantic atmosphere at home with a nice tablecloth, the good dinner set and a few candles. Plus you can still get dressed up for dinner, but enjoy the much more romantic and private atmosphere of your own home.

To make the entire day romantic, share the meal preparation duties too. Spending time together in the kitchen won’t cost you a thing, but makes for quality time, and a romantic meal that’s a team effort.

2 Have an affordable night out

If you still want to get out of the house, but want to avoid the restaurant meal, capture the romance and excitement of a Valentine’s Day date night with just one portion of the evening. To save you money on the full cost of a night out on Valentine’s Day, go out for coffee or dessert and enjoy an affordable night out.

3 Celebrate on a different day

Romance on Valentine’s Day doesn’t always have to be in the traditional activities of candle-lit dinners and the like; and it doesn’t always have to be on Valentine’s Day either. Since February 14 falls on a Sunday this year, take the Friday or the Monday off and spend the day together. There will be fewer people around, and a simple walk on the beach, a trip to the movies, a picnic or a hike can make for a romantic day because you’re celebrating with just each other, in your own way.

side note from Jason: This is much harder to do in winter landscapes, but you can go ice skating or sledding!

4 Give thoughtful gifts

There are a number of alternatives to expensive flower displays and chocolates which become over priced at this time of year. Think of something which your partner will actually want – it might even be cheaper than flowers and chocolates and will be much more appreciated.

Show your love at home and bake heart shaped cookies or muffins for your partner. Or if your loved one is heading off to work this Valentine’s Day, cut their sandwich into a heart shape as a special surprise.

Offering yourself as a gift is an old favourite, but a book of vouchers can make a thoughtful and affordable Valentine’s gift. Make up vouchers for cooking a special meal, cleaning the house, giving a massage or seeing a movie of your partner’s choice. You know your loved on the best, so give them what they really want.

A mix tape may sound old fashioned but the sentiment is still sound, even though tapes may not be. Make a list of the songs which you and your loved have shared, or songs which make you think of them. You can then burn the songs to a CD and put it into your partner’s car CD player as a special surprise, or download them to your partner’s MP3 player with a short recorded message from you.

However you choose to give your mix tape, just because the tapes have gone out of style, the thought, love (and affordability) hasn’t.

5 Not just roses

Roses are one of the most expensive flowers available, especially on Valentine’s Day. Therefore, look at alternative flowers which are likely to be cheaper, and try and choose your partner’s favorite flower. Does she prefer daisies, lilies or gerberas? All of these are much more affordable than a dozen roses so you can save your flower budget, or spend the same amount of money for a much more impressive display.

You could also buy just the flowers from your florist, rather than the expensive boxed displays. You can then buy an affordable vase and put your bunch of flowers in the vase for a beautiful Valentine’s gift, and a vase which your partner can keep for when you buy her flowers next time.

6 Leave romantic notes

You don’t have to get just one Valentine’s card for your partner this year. Instead, make a gift out of a number of cards with special messages hidden all around your home, their car and even their office if you can arrange it. Make some cards and notes easy to find and others a little harder so that this can be a gift which keeps on giving.

7 Write down how you feel

You can write a poem for your loved one, but it doesn’t have to rhyme and it doesn’t have to be filled with soppy romantic clichés.

Instead, write down how you feel about your partner, mention important memories or special times you’ve spent together. You can then copy it into a blank Valentine’s Day card if you feel self conscious about giving a poem as a gift, and the card is something which can be kept and displayed for years to come.

8 Do something your loved one wants to do

Every couple has those things one person wants to do, but doesn’t interest the other. Valentine’s Day is the perfect time to do those things your partner wants to do, but which you normally say no to. For example, she always wants to go to the beach, he wants to go to a baseball game; she wants to go for a walk, he wants to see the new 3D movie. 

Valentine’s Day gives you the opportunity to do these things together, and while the actual acts may not be romantic, it is the fact that you want to do something which will make your partner happy.

9 Make a love scrapbook

Valentine’s Day is all about showing your love, and everyone wants to feel loved, special and admired. Therefore, fill an entire scrapbook with everything you love about your partner. Dedicate an entire page to each memory or attribute which you love about your partner and accompany it with cut outs, photos or memories like ticket stubs or restaurant menus which are meaningful to the two of you.

You can then fill pages with contributions from your partner’s friends and family, about why they love and admire your partner. They can contribute their own photos and write out their own memories to make a special lasting display, and make your partner feel like a prince or princess whenever they look at their love scrapbook.

10 Save for next year

Giving a meaningful and thoughtful (and frugally affordable) gift this year may set the bar quite high for Valentine’s Day next year. Therefore, you may want to accompany your thoughtful gifts with a stunning present too, so start saving up now. You may be able to cut back on a coffee on the way to work each day or eat less take out.

Or, saving for your Valentine may be as simple as starting a savings account dedicated to February 14 next year, and contributing regularly. Plus, if you plan your purchase for next Valentine’s Day you’ll know exactly how much you need to save, and your gift is sure to be meaningful and well thought out.

Having debt in a relationship is a sure-fire way to add stress and tension and that is the last thing you want to do on Valentine’s Day. Instead, agree with your partner to have a frugal Valentine’s this year and put some thought into being thoughtful without over spending.

This has been a guest post by Fred from Credit Card Finder.  Fred  helps people to compare credit cards and find the best credit card for their needs.

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I know you must be an experienced saver (you are reading this blog!). But there are still money-saving tricks you are probably not aware of.

Let’s take a look at three of them.  Here’s my list of  3 fun and geeky ways to save with your email.

1. Create a Money-Saving Gmail Filter

If you have ever bought anything online, you’re probably subscribed to the store’s email updates.

Or perhaps you have a few favorite stores you turn to on a regular basis that offer good coupons and special offers.  Wouldn’t it be nice to track deals from those stores without stuffing your Gmail inbox?

Here’s a way out: create a Gmail filter.

1. Login to your Gmail and go to: Settings – Labels and create a new label called “DEALS”

2. Go to: Settings – Filters and click “Create a new filter”

3. Submit the following values:

• From: *@amazon.com OR *@ebay.com OR *@barnesandnoble.com OR (*@yourfavoritestoredomain.com)
• To: me

4. Go to the next step and choose the following:

• Check “Skip the inbox” (to avoid clutter in your inbox);
• Star the message (you will be able to unstar after you check the deal details);
• Apply the label “DEALs” (to collect all the offers in one place).

You are done! Now, every time that a new deal comes from the store you track, it will automatically be stored in your “DEALs” folder.

2. Create a Customized Money Alert

Another way to track online deals and avoid email clutter at the same time is to create a customized email alert - this way you will only be updated on what really matters to you.

My favorite site to do that is Buxr. The site allows to customize your email alert by:

• The store name (choose “All” if you have no particular seller in mind);
• Type of a deal (coupon, sale, product or all);
• Any term:

This way you will only get updates on all deals related to “laptops”.

3. What If There Is No Email Subscription Option?

Sometimes you really love the site and you would like to monitor their updates but they don’t offer an email subscription option.  No worries.

Let’s say the site is “ListFreeSamples.com” (I personally use this site as the freebie source but it has no email subscription option), so here’s what you need to do:

Go to Google Alerts and create a new email alert for site:listfreesamples.com:

You are done. Once Google finds anything new on the site, it will update you via email.

Any more tricks on saving money with your email? Please share them in the comments!

This is a guest post by Ann Smarty who blogs on searchand social media. If you are looking for guest bloggers or blogs that need contributors, join Ann’s forum called My Blog Guest.

Below is a guest post from my Mom!

My mother is a Mentor Mom for a MOPS (Mothers of Pre-Schoolers) group at church and they asked her to give her insights on the question of how to keep spouses from growing apart.  I thought I’d post what she wrote.

I know what you’re thinking – “Wait a minute – this has nothing to do finances!” 

Maybe so, but it has everything to do with ROI!  Investing in your marriage is one of the greatest investments you could ever make! 

Remember, true wealth isn’t about your net worth and account balances – it’s about the quality of relationships, pursuing your passions and living out your purpose. 

Let’s give Mom a warm Redeeming Riches welcome!!

Hey Ma – take it away!

So, how do spouses keep from growing apart?

This is a great question with very difficult answers. 

But how you view the suggestions to this question will be a deciding factor to a happy and successful marriage and the difference in raising well-adjusted children. 

Intentionality and Commitment.

The first suggestion is to be intentional and committed.

Both spouses must view their marriage and their time together as a priority.

Remember that your spouse was your “best friend” when you were dating, so they should remain your “best friend” after you’re married.  This requires hard work and effort.

So, how can you be intentional? 

Schedule date nights and keep them! 

I know it’s not always easy to get a baby sitter when you want one, but try “networking” with other couples who will be available to sit for you and you in turn will be available for them. 

Side note from Jason: My wife and I have done this with other couples in a similar stage of life (2 young kids at home) and it’s great!  It’s nice to go out for dinner with Jen and not worry about who else we have to feed.

Keep the Right Perspective.

Perspective is easy to lose when you’re in the midst of chaotic schedules and crying children.

However, when you invest in each other, you are investing in a long term commitment. 

Remember that your children will not always be with you.  They grow up, move away and start their own lives. 

After years of marriage - and when the kids are gone from the nest – you don’t want to look at your spouse as a stranger. 

Through the years you need to create a closeness, a bonding and a togetherness between you both. 

Keeping the right perspective through forgiveness will be key. 

Forgiveness is a key that needs to be applied generously to each other while remembering that the Lord has forgiven us and extends His grace to each one of us.

Security 

Lastly, security is a huge key to keep your togetherness. 

The world is a crazy place to live in.  Make your home a “Shelter from Life’s Storms”. 

Say things to each other that are uplifting and encouraging.  Be there for one another when life throws the hard punches that tend to knock us off our feet. 

Your home should be a place where all members can find security and a safe place to be themselves, without the knit picking and constant criticism.

Remember the old saying “If Momma ain’t happy, ain’t no one happy?”  Well, I would change that to say: 

When Mom and Dad are happy with each other, the whole family is the happiest. 

A loving relationship between Mom and Dad is the greatest security blanket that children could ever ask for!

Technology is changing the world and personal finance at an unbelievable rate.

Remember when tracking your spending involved pen and paper, now we have website that does it automatically. It is to the point where we don’t have to do anything, but continue spending as we normally do.

But even with all this technology many people are still finding it hard to maintain a budget, track spending, and automate their savings.

I was talking to a friend last night about using a site like Mint.com to help him manage his money. I asked why he doesn’t take advantage of something that does all the work for you and is completely free.

His reply was:

I’m too lazy

Too LAZY! Too lazy to do what? I couldn’t believe it. 

I spent the entire night (12AM- 5AM) thinking about what he said. It is amazing to me how human beings, the smartest creatures on the planet can be so stupid. My mother once told me “ lazy people work twice as hard” and he is living proof.

Managing your personal finances can change your life for the better.

I have never heard of someone going broke from practicing financial management. Have you?  In spite of all the technology out there, many people refuse to get their act together.

Why? I can’t figure it out.

Is the desire to buy things you don’t need that strong? Are advertisements that powerful? Are we brainwashed (just throwing that one out there)?

If I told you that personal financial planning is a surefire way to retire early with enough savings to live the life you want, would you practice it then?

Well, it is and it has a very high success rate. That is the reason you hear so many people preaching it.

If you punch your information into an Excel spread sheet or the Mint website and go over what you did with your money at the end of the month, most of you would want to kick yourselves for not doing it sooner.

The technology is there, all we have to do is use it. Don’t make laziness be the reason you are still working at 70.

This has been a guest post by Jay Scott.

Jay Scott is a personal finance blogger over at jinij.com. He uses is site to encourage others to start on the road to financial freedom.

It is an epic battle, one waged since the dawn of time…well not quite that long, but the battle between credit card rewards and credit card debt is one which polarizes people the world over.

But today we end it with a duel – en guard!

The Strengths of Knight Reward

Knight Reward is often accused of being an underhanded competitor – offering the possibility of the carrot, only to beat you with his stick.

Well you can avoid being beaten and get a hold of the prized carrot if you know how to play to the strengths of credit card rewards.

How to use a credit card for the rewards:

A rewards credit card must be used with a high interest savings account fighting alongside.

Knight Rewards’ most famous battle cry is the fact that credit cards can be used throughout the month, during their interest free days, for all purchases while your salary is in a high interest savings account accruing interest, or is in an offset account linked to your home loan, offsetting the interest you will have to pay on your mortgage in the month.

To be given the chance to win, your credit card must be allowed to fight, and to combat the high annual fees which often come with rewards credit cards, you will need to be spending at least $2,000 each month on your credit card before you consider going in to battle alongside Knight Rewards, to accumulate enough points to make you eligible for rewards which will compensate you for these fees.

You must always clean your sword before returning it to its sheath.

If you fail to pay your rewards credit card balance back to zero before the end of the interest free period, even the fearless Knight Rewards won’t be able to save you – you’ll be ensconced in interest and monthly repayments which will override the value of any rewards you may earn.

However, using a credit card and paying it down to zero each month gives you a strong credit report and shows your financial responsibility.

Choose a rewards credit card which actually allows you to earn rewards.

Some rewards credit cards are drawing you into a battle you’re bound to lose with unrealistic terms, conditions and usage periods for your rewards points.

However, there are many credit cards which will offer you the chance to choose gift vouchers or fuel vouchers with the points you have built up in your spending and some gold cards will also allow you to earn two points for every one dollar you spend.

Know the rules of the credit card battle.

If your rewards points do expire, make sure you can easily keep track of them and cash them in for rewards before you lose them. Also make sure that the rewards you can earn are ones you actually want, and that you are given choices between charity donations or cookbooks, movie tickets or a hair straightener.

A savvy purchaser can deftly avoid interchange fees. Some rewards credit cards will attract a higher interchange fee, but most Australian retailers will advise you of this additional fee before processing the purchase – therefore, look for a credit card with a companion card which attracts lower interchange fees.

For example, take a Mastercard or Visa into battle with a companion American Express card, AmEx can earn you higher rewards, while fighting in a tag team with Mastercard or Visa to avoid high interchange fees. An informed credit card user also knows interchange fees are just one of the many costs of doing business.

He’s put up a good fight, but is it enough to allow Knight Rewards to maintain his dominance on the credit card battlefield?

The Strengths of Challenger Avoid

Challenger Avoid is a somewhat meek competitor – taking the road of least resistance in the battle and in risking nothing, he attracts no ire.

Challenger Avoid knows his weaknesses and if you’ve identified similar weaknesses then you may choose to fight alongside the stoic warrior Avoid.

Avoiding credit card battles:

The cost of not-so-innocent interchange fees is just too high.

Avoid is proud to fight the good fight on behalf of all consumers and holds strong to his belief that interchange fees which merchants are charged to accept credit cards are a cost passed onto all buyers, regardless of their payment method.

Challenger Avoid will avoid credit card use to save himself from the costs of interchange fees, while hoping the decreased use of credit cards will decrease the cost of interchange fees to businesses, and in turn customers.

The battle of the credit cards preys on the weak.

Challenger Avoid chooses not to fall victim to the seemingly enticing deals which he believes are only a clever disguise to get him deeper into debt, in turn earning the credit card companies more interest.

Challenger Avoid knows the credit card companies don’t ever want him to pay off his balance, and chooses not to spend an eternity being encouraged to spend.

Know Your Credit Card Habits

Knowing your spending habits helps you responsibly avoid bad debt. If you have faced past battles with credit card debt and lost, or you don’t want to tempt yourself to spend money which is not yours, Avoid encourages you to not show your weakness to the credit card companies.

If you don’t think you can pay off your credit card to zero each month, or only use it for essential purchases, then the best way to ensure you stay debt free is to avoid the temptation to use credit.

A doppelganger debit card can give you the same convenience as credit. If you have chosen to avoid credit card use, you don’t have to forge the ease and security of paying with plastic.

You can instead employ a decoy – a debit card which looks and acts just like a credit card, but which links to your transaction account and allows you to only spend your own money.

Debit cards offer you the security to pay for bills over the phone or make online purchases and can even offer rewards of their own – Visa Debit cards for example give you first access to concert ticket releases and discounts on audio entertainment equipment.

A worthy opponent, who has now earned himself an equal rank beside Knight Rewards, but has Knight Avoid been able to topple his historic foe?

The battle has been fought and won, with each side offering a mighty show of strength and determination for their cause, with the duel making champions of both competitors.

How About You?

The duel between Knight Rewards and Knight Avoid will go down in history, so which side will you be fighting on in the future?

Fred Schebesta write for Credit Card Finder and Savings Account Finder, where he helps people to compare savings accounts and credit cards

You’ve seen it a thousand times – but perhaps you haven’t given it much thought.  What does A.P.R. stand for and what should we be aware of when it comes to these three little letters?  Let’s face it, mortgage financing can be confusing, but it doesn’t have to be.

Mortgage APR or Annual Percentage Rate helps you assess the total cost of the loan in percentage terms when you are trying to calculate your mortgage interest.

If your mortgage attracts an average mortgage apr of 10%, it means that you will be required to shell out $10 for every $100 you borrow yearly. Borrowers usually try to get a mortgage loan that has the lowest APR. 

Mortgage APR however doesn’t affect your monthly mortgage payments. This is because your monthly mortgage payments take into account the mortgage interest rate and not the APR.

 What does mortgage APR include?

The APR includes the following in its calculations-

• Pre paid interests
• Points
• Underwriting fees
• Loan processing fees etc.
• Fees for preparing documents
• Private mortgage insurance

In addition to the above, under certain circumstances, a credit life insurance and loan application fee may be included as well.  

Fees excluded from APR calculation

The mortgage APR doesn’t take into account the following types of fees in its calculation: 

• Appraisal fees
• Notary fees
• Attorney fees
• Transfer taxes
• Fees from Escrow and Title
• Credit Reporting fees
• Recording fees
• Home Inspection fees etc

In other words, the mortgage APR helps you to find out the amount you have to pay as closing cost. It is mandatory as per Federal Truth in Lending Laws that the lender has to disclose the mortgage APR to the borrower.

It is important that you compare the rates from one lender to another. You can also compare the Annual Percentage Rate online.

It helps to shop around for the best deal. It is also important to remember that getting a low mortgage APR doesn’t necessarily mean that you are getting a good deal. 

Check the APR and read the fine print before signing the agreement when you opt for a mortgage.

This has been a guest post from Sandy Thomason from the Mortgage Fit Community - a community where members provide personalized guidance on mortgage questions.

It’s one of life’s great conundrums: how exactly does the average credit card user stay debt free? Surely the two are mutually exclusive, and therefore the stuff of fairy tales. Yet, while most credit card users find it nigh on impossible to clear their debts, there are a handful of very organized spenders who should be lauded.

They don’t necessarily clear their cards every month; they just use them wisely and manage their money well: think frugal and sensible, as boring as it sounds. And while it is a good thing to be able to clear your credit card debt, it’s actually healthy for your credit history to have some record of debt, so potential creditors can see if you’d be a worthy client.

The debt-free credit card user’s secrets are within your grasp – and all without a pair of scissors in sight. Here’s how they do it:

1. Show Restraint
Don’t throw your money around. The average DFCCU (debt-free credit card user) has had to learn to be strict with themselves and their wallet, and it doesn’t mean they only refrain from extravagance, it means they start with saving on the small things. So, eat out less, buy more home brand items at the store and shop around for cheap gas or better still, ditch the car – it’s often a huge drain on finances. Once you’ve cut costs you’ll find you’ll have more money to pay off debts.

2. Get a Steady Job

Before the bottom fell out of the financial market, the world and his wife were inundated with pre-approved credit card offers, and were often granted immediate credit without ever having to prove they had the means to pay it off.  Now that the financial bubble’s burst those offers aren’t flooding letter boxes in the same way, but the people who were granted the credit are drowning in debt. So, the one and only way to get out of the mess is to have a job that pays well. And if you have a good job but you’re still finding it hard to pay off chunks of your debts, get a better one, or ask for a raise. Of course, changing spending habits would be the best route, but for some that’s harder than changing jobs!

3. Stay Strong

When the assistant behind the counter is trying to persuade you to get yet another store card that you don’t need, just say “No”. Sure you get $10 off the total cost of your bill today, but you’ll end up paying 10 times that over the next few months in exorbitant interest fees, which will probably keep building up because you only pay the minimum amount every month.

4. Have a Healthy Panic

Ignore all the advice you’ve heard to date about not panicking when you find you’re getting deeper into debt. Are they mad? A good controlled panic attack will scare even the most hardened debt junky into realizing that they can’t possibly go on spending as they are – and not on their wage. And don’t worry; even the DFCCU had to go through this stage, too. It’s like one of the five stages of grieving, but for cards.

5. Devise a Plan

Once the panic waves have subsided, take a deep breath, pull yourself together and start planning what to do next. Write down exactly how much you owe – it always looks much worse on paper, so will reiterate just how bad, or good, things are – then start calculating.  How much you allocate to each card should depend on the interest rate of each. Start paying those with the highest interest rate first. If you can, consolidate all your debt onto one low-interest card, or one with a good introductory offer near 0% for certain period. Be warned though, always check the fine print on these offers so you’re not stung with a highly-inflated interest rate once the introductory offer finishes.

6. Make Direct Debit Your Friend

Without a doubt, everyone who has ever had a credit card will have missed a payment at some point, and while this is enough to push most people into setting up a monthly direct debit, others remain serial non-payers. True, it can be a pain getting it organized and usually involves lengthy calls to your bank, but once it’s sorted it is absolutely worth it. All you have to do is make sure there is enough money in the bank every month to cover the outgoing payments. See step 2.

7. Get the Devil Behind You

Do not use your credit card in place of a debit card. It’s a sure-fire way to ensure your fragile financial stability goes into a downward spiral. Many cash-strapped people start to use their credit card once their checking account has gone over the overdraft limit because it’s the only way they can get their hands on some cash. But don’t be tempted. Unless you are very good at managing your payments by paying them off every single month, keep your credit card locked away until desperate measures are needed. And that means not using it to go out with your buddies for a few drinks because you’re too embarrassed to tell them you’re broke! Peer pressure can be shockingly persuasive.

8. Make Small Sacrifices

Not the voodoo type; some of your own.  List what you can do without and write down what you really need for the week/month, depending on how you calculate your budget. If you think you really need something and are tempted to buy it but know you shouldn’t, give yourself a 30-day cooling off period. If after then it’s still as precious to you, budget around it. It’s also a good idea to have days when you vow to spend nothing at all. Pick one day a week, stick to it, and you’d be surprised how much you can save.

9. Give it Some Time

Understanding that you’re not going to be able to become debt-free overnight is important. These things take time. As long you realize that it’s about how you use your credit card, and a budget is in place, things will get easier. And once you’ve mastered the art of debt-free credit card use you can start building those precious points that will lead to well-earned treats, without having to worry about how you’re going to pay for them.

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