Some “Tax Holidays” Being Cancelled

Several states usually participate in what’s called a “tax holiday” where it’s citizens can go shopping for a period of a few days, usually over a weekend, without paying sales tax on anything. For instance, right now would be the time for the tax holiday for many states that do it because it’s prime back to school shopping time. I’m sure the reason they do it this way is that working parents get a break on shelling out the dough for their kid’s back to school needs, so they get a little economy boost while also feeling good because they did something for a kid and for their parents.

Sales tax can range usually from about 5% up to above 7%, depending on what states you live in. That can add a substantial amount of money to your end-bill if you’re buying a lot of goods, so this tax holiday can really be an incentive for many shoppers. Which is why it would especially be good with the way things are now, to help stimulate the economy and the consumer mindset and jump start it now that some good news is starting to come out about this economic recovery.

However, some states are so strapped for cash that they may cancel or at least postpone these popular tax holidays. Among the states that have cancelled this tax holiday are Massachusetts, Florida, Maryland and the District of Columbia,with the state of Illinois putting their tax holiday on indefinite hold due to difficulties, but not out and out cancelling it. Many states have already had their tax holiday by now, but those that haven’t are contemplating it, at least some of them are.

So, does your state offer a tax holiday? I know I wasn’t sure if my state of Ohio did, but they actually don’t. You can keep up on the latest by reading your local papers that are based in your state or by keeping up with the local news online, which of course as you know, has pretty much replaced newspapers these days for thousands of people. Usually this kind of local news is covered and you won’t miss out on an important opportunity to save some money. It’s basically like money in your pocket if you pay attention and take advantage of going shopping for things you need anyways when these types of deals come up!

Save Your Change for Something Special

One of the little ways in which we try to spend less money on frivolous things like dinners out and fun things like entertainment, is to save our change whenever we have a few quarters, nickels and dimes that are leftover. I regularly get a lot of change, since I do pay for a lot in cash like fast food, or small items at drugstores and things like that, if it’s a small amount and I don’t necessarily feel like using my debit card, so I tend to have a lot of change jangling around in my purse/wallet at all times anyways.

What I do, is at the end of every day or at least at the end of every few days, I take the change and throw it in sort of a kitty – which is an old standup cosmetic bag that I happen to have laying around, and let it build up. At the end of a year or so, I’ll roll the change or take it to a Coinstar location where the machine can give you dollar bills for your change when you throw it down into a little receptacle, and pay about 7 cents on the dollar for the priveledge of getting my change turned into dollars quickly and with minimal inconvenience.

If you don’t like paying that much on the dollar, then take it to a bank all rolled up or go to your bank and get money rolls, I’m not sure if they charge for them or not, and roll the coins and exchange them for cash money. Then, you can have a nice dinner out or two and maybe a movie, depending on how much you saved up (aka how much change do you generate over that period of time), and not have to feel guilty about it like you would if you were spending your “hard earned” money that you have in your checking account of whatnot.

I know it’s neither here nor there, because you could spend that money on some outstanding debt that you have and make that your duty for the money, or you could spend it on a night out. My money’s on the night out, because you gotta live, and this is a way to do it without feeling guilty about. I know money is money, but this feels like it’s sort of a freebee in a way I supposed.

Knowing Your Credit Score Can Save You

This is a day and age where your credit means everything. It means the difference between getting or not getting the house you’ve always wanted to own, the car you need to get around, and the extra things in life that make it pleasant and enjoyable. Your credit score is vital to your financial future, and not knowing what’s on there is dangerous because if you don’t know something is creating a blemish on your record that might be the difference between getting an important loan and not getting it, how are you going to be able to take care of it?

I have the perfect example actually. Before I got my free credit report for the first time, I had no idea that there was an outstanding bill that was out there for a Dr. appointment I had about seven years ago. I had moved after the bill came to my old address you see, and I had no idea that this bill was still outstanding because the bill was never forwarded to my new address, even thought I had filled out the forwarding paperwork at the post office.

Naturally, when I saw that, I called and had it paid and taken care of right away, but before I had learned that you could get free credit scores, I didn’t have any way of knowing that creditors were looking at this blemish as a negative aspect of my competency to pay them back in the event they were to extend credit to me. I had purchased a car prior to this, and perhaps I could have gotten a better interest rate if I had known about what was showing on my credit report, good and bad, before I settled the loan.

You see, not only does your credit history determine whether lenders will even consider loaning sums of money to you for purchases big and small, but it also almost always plays a huge determining role in what kind of terms you get on your loan. This means what kind of annual percentage rate they are going to give you as a “fee” for them lending you money, also known as your interest rate. Do you know how many thousands of dollars you can potentially save in interest on a mortgage loan or even any other standard installment loan by simply having stellar credit and a clean history?

It’s mind boggling actually, and it only hammers home the important of keeping up with what your credit history is and if there are any items on there that could be seriously hampering your chances at getting great APR’s from lenders. Not only that, but of getting a loan at all to be honest. Many creditors in this day and age are (understandably) getting more and more stringent about their terms of acceptance, and the bar is being raised on the important of a good credit score.

I guess you live and you learn though, I was younger then and have since been schooled in the financial importance of your credit history. You could have all the cash in the world, and your credit would still be important. You can’t open a business, buy a high ticket item, or sometimes even get a credit card with a high limit and low interest rate without having at least good credit, and if you don’t have the tools to attain that by getting your free credit score, then you understandably will not take care of the items that are creating a bleak outlook for your credit worthiness to lenders in a timely fashion so you can repair your record and get on the road to extreme creditworthiness.

How Will This Recession Change You?

The recession we are currently in may or may not become a more serious event, called a depression. In fact, it may already be a depression, which is something that may not be officially called until months from now for all we know. The unemployment numbers have jumped over eight percent, which is the highest it’s been in over a quarter century, and we are seeing a greater contraction amongst the credit markets, which we are being promised will start to open up again per the Obama economic plan and policies. As to whether this will work, one has yet to see…..no one knows what will work with absolute certainty, and that is why there is such an over abundance of fear right now.

But are you taking it in stride? Are you calmly observing this unfold, or are you one of the many who feel the cold grip of fear come over you every time you consider your job security, your mortgage, your financial comfort and security, and all those little things in your life that provide material comfort that you just seem to take for granted sometimes?

Many people have shared their stories about how this current economic condition has changed them. It may not have dramatically changed some people’s spending habits or their optimism about America’s future and the future of the economy and their jobs, but others are undoubtedly shaken, almost to the point of no return, ready to go into full on battle mode, and start buying canned goods and rifles to protect their property when everything “goes to hell”.

You get anywhere in between when you ask various people. I can tell you how I’m taking it. I’m cutting back on pleasure spending. This means my once a week shopping trips to Target and the like have been cut out. It didn’t mean I would spend money once a week there, but it certainly left me open to that possibility. Well, not any more, I’ve begun to cut random, pleasure shopping trips to a minimum because I know that I won’t spend money if I’m not out and about.

We’ve begun renting a lot more movies through Netflix, so that we can stay home and entertain ourselves there, rather than do things like go out to dinner or any other form of entertainment that costs money. We’ve cut out things that aren’t necessities or even extreme nice to haves, like our Distillata water, and instead installed a forty dollar water filter in our refrigerator that lasts 400 gallons, a lot better than what we were paying for the delicious Distillata water.

It’s all these little things that we feel have made a bit of difference in our lives, and that will help us pay off high interest debt rather than spend new money on things that are not necessary, and that’s how we’re coping with this recession.

Saving for a Rainy Day

The economic downturn has made the need to save for a rainy day more important then ever. One thing that remains constant in turbulent economic times is uncertainty of what tomorrow may bring financially.

Although it is difficult to set money aside for savings, it can be a life saver in the event of a job loss or layoff in the future. According to financial experts, you should have 3 to 6 months worth of living expenses to fall back on in savings so if you are faced with a job loss in the future, you’ll be able to survive.

Your emergency funds should be tapped into for only true emergencies, not for day to day wants. Where you keep your funds should be safe, readily available and with a decent interest rate. Traditional savings accounts are the most commonly used for this purpose. C.D.s can be used for emergency funds if they are set up in a “ladder” with staggering maturity rates at different times.

This way funds are available to you as the varying maturity rates come due. If you draw out of these funds before they mature, you’ll be charged a penalty. C.D.s are considered safe as the FDIC insures them up to $250,000 per person per institution. Money market funds are another way to store your emergency funds. They remain a safe place to store cash for the future. Interest rates pay, on average, 2 to 2.21 percent.

Establishing a home equity line of credit can help in the event of future personal calamity. The idea behind this method is to leave other investments that have a good yield untapped. However, with falling values of real estate, many home equity lines of credit have been cut.

Given a choice, if disaster strikes, first tap into your home equity line of credit rather than cashing in C.D.s prematurely and paying penalties. Try to keep something in reserve in your savings accounts and money markets for further future emergencies. When looking for ways to save for the future, look for safe growth even if it is slower. The possibly higher yields hold with them higher risk for potential loss. The purpose of an emergency fund is a guaranteed backup plan.

Tips for Scaling Back Spending

Well, times they are a changing, to quote one of my favorite Bob Dylan songs, and only the best of the best retailers and businesses may make it out of this virtual financial storm – and I could use more colorful language there if you know what I mean – with their wits about them and some spare cash sitting around. Even those that do survive will have had to fight tooth and nail to do so in most industries, which are reeling after a weak holiday spending season in the wake of what some are terming a new frugality that permeates the reatil buying atmosphere.

Buyers (consumers) are simply not buying things unless they are on sale now. It used to be that a lot of people would shop that way, but it seems like with all the concern over jobs and the economy playing out, almost 90% of consumers are buying only when things are on sale, and some only when they are dramatically marked down.

This may be one of the ways that you are saving money yourself, I know it’s one that I’m using. I’m also starting to go to some of the stores that are radically discounted for foods and other goods that I had sort of forgotten about in favor of my normal shopping places that were more pleasant and less crowded, but also not as cheap. These cheaper food stores I’m talking about and general consumer goods are places like Aldi’s food store where you can buy food items dramatically marked down, but you have to pay a deposit for your cart and you also have to pay for your bags.

In the end, it’s well worth it and you end up making out on your grocery shopping bill. I’m also remembering discounter Marc’s as well, who has narrow, cramped aisles and not the most pleasantly arranged store, but who you also can pay as much as a third less than the typical grocery store for most given items. I’ve also been making a few trips to a store that I usually avoid like the plage, which is Wal-Mart, because while I believe their retail structure has ruined lots of small businesses and don’t like a lot of their other policies, they are cheap.

A lot of people are going back to cheaper retail shopping outlets as a means to save some money, it’s not just me, that’s for sure. Dollar General, and Dollar stores are starting to realize their profits are going up because people are going to them instead of the department stores and grocers for items that they can get there.

Try lowering the heat in your house and instead piling on the sweat shirts and undergarments to keep warm. It’s amazing what a good pair of toasty socks, some slippers, an undershirt and big comfy sweatshirt can do to keep you warm, and you’ll also enjoy a lower heating bill. Putting plastic up on the windows helps immensely as well, and if you leave the curtains or blinds open during the day on the side of the house that gets the most sunlight, you are also getting solar energy supplemented, which can help your heating bill as well.

Use your rewards credit cards like gas credit cards, airline miles credit cards and other similar reward style credit cards to make all of your purchases instead of cash. This way, as long as you are paying it off every month, you are essentially getting something for nothing (besides the many times annual fee you have to pay for cards like these), because you are getting your miles or free gas or points toward purchases for things you would buy anyways.

I’m on Hold to Get Better Mortgage Rate…

I’m on the phone on hold with my primary mortgage company to try to get a better interest rate on my primary mortgage loan, which isn’t bad to begin with, but I’m really interested in getting my primary and secondary mortgage combined, since the secondary mortage rate is higher than I’d like. It may be possible, at least per the first representative I spoke to, without closing costs, to get a better (lower) interest rate on at least my primary mortgage with them.

Right now, banks are swamped with people looking for lower interest rates on their home mortgage loans since people are figuring that their chances of getting a lower rate than what they started out at is good because the Fed has lowered the prime rates so many times now due to the economic conditions. I have been waiting on hold now to talk to an actual mortage loan representative for about fifteen minutes, and was told that due to long hold times I could be on hold for about a total of twenty minutes or so.

Update : I was on hold for a total of twenty seven minutes, only to be told that due to the outstanding principle balances on my two loans, I was not eligible at this time to get a refinanced loan for both of them, because it would have to be considered an FHA loan, and the FHA loans in my area only have a limit of so much, and combining our two principle balances would make that amount too high, making it impossible to make us eligible for that loan.

However, then he looked into just giving us a lower rate on the pre exisiting primary mortgage that we already have with them, since there would be no closing costs and we already had financing through them. He declined that as well though, he didn’t want to say exactly why, but it was something about that it was due to the limit on that loan as well. They did run credit on both of us (see how you can get your free credit score report)My hunch is that they saw we’ve made timely payments, could handle them, so why give us a lower rate when they could still make all that interest off of us!?

I have to admit I’m a little annoyed, because why do these companies send you these preapproval mailings acting like you’re all but approved for new loans to save money, and then make you call and get on the phone with them for forty minutes, only to turn you down for reasons that aren’t totally clear. I have a feeling this was a business decision based on some sort of money making matrix, and we didn’t fit into that matrix. Oh well, I’m going to try again if I get another offer from a different company!

What’s the Holiday Shopping Season Looking Like?

Gosh, seriously, I feel like all I do lately is provide the latest gloom and doom financial news that permeates the media by the dozens these days, but I guess I have to still report the facts as I see them at least, right? Well, it’s no secret at this point that this holiday shopping season is not shaping up to be the greatest news. No shock there, right? But the other part of that is that of course many are saying it’s going to be one of the best bargain hunter’s dream season we’ve seen ever.

However, as I just talked about in my last posting, deflation, or falling prices is hardly ever good news in an already browbeaten economic atmosphere. Most economists and analysts are saying that if October’s record drops in retail sales are any indication, consumers are holding onto their money for dear life and will definitely be holding out on holiday retailers as well, making this one of the worst retail sales holiday seasons on record. Heck, I was just discussing this with my own family, and we decided to put a lower than usual price limit on our own annual gift exchange for the Christmas holiday.

I’m imagining that lots of people are doing this, scaling back on buying gifts for their friends and family and maybe instead putting the focus of their holiday shopping dollars on kids since they are the most important part of the holiday season. Even toy retailers have been feeling the crunch of the shopping moratorium, with makers like Mattel and Toyco’s stocks dropping in the wake of dismal forecasts for toy sales this season. However, it still must be noted that in times of economic downturn, parents still notoriously keep spending on their children.

I’ve already gotten the down low on the black friday shopping deals in my email, and believe me, if you are in the market for any kind of pricey electronic like a laptop computer or even cameras or GPS devices, then you really should think about making those purchases around this time since you may not be finding many better prices any time soon on these types of normally high ticket items.

If you’re not feeling the economic crunch and your job is safe, why not use this as an opportune buying experience for some of the higher priced items you may have been putting off? Sounds good, doesn’t it? Just make sure you’re not spending money that should be saved in case someone in your family loses their job, if you think you may be at high risk for that.

Saving Money on Heating

We are in a recession and all of us are trying to find ways to trim our budgets. Wintertime often taxes our budgets even when the economy is in good shape. A main concern for all of us is the skyrocketing cost of heating our homes.

Many of us are looking into alternative means of heating our homes to try to assess which method is best and the most economical. Burning firewood as a source of heat is one alternative. The advantages of this method are it is a renewable energy source, if you have your own woodlands, the cost is minimal, it provides a steady source of heat and it will work even in a power outage.

On the down side of heating with wood there are disadvantages. There is the possibility of creosote buildup with the likelihood of chimney fires. Chopping and burning with wood is time consuming and dirty with insects and ashes. There are hidden expenses such as log splitters, trucks to haul the wood and chimney maintenance. If you have to buy the wood, it is too expensive to be cost effective.

Anthracite, or hard coal, is gaining popularity as a method of residential heating. Some of the advantages of burning anthracite for fuel are it has the highest BTU per ton when compared with other residential heating fuels, it burns clean with very little odor, you don’t have to worry about creosote buildup in your chimney and it is a domestic product.

There are also some disadvantages of burning anthracite for your heating needs. They are that it requires an electric blower to burn, a fine ash can escape from the stove into your home and it has limited availability. Another alternative source of heat are wood pellets. A good pellet burning stove sells for about $2000.oo to $4000.00 plus installation. The good points for wood pellets are they are a clean, green fuel, they are cost effective when compared with other heating fuels, they are convenient and the stove can be direct vented.

On the down side of wood pellets, the stove requires electricity for the combustion blower so they won’t work in a power outage. The quality of the wood pellets is not always consistent from one manufacturer to another. Sometimes, people have an allergic reaction to the ash and dust residue. If you are being shocked by your high heating bills, you may want to investigate different possibilities for your heating needs.

Rich Feeling Pinched Too?

Apparently this recession isn’t just hitting the likes of regular schmoes (like me), but it’s also starting to show it’s effects on the upper crust rich portion of our population also. So called luxury goods are suffering a bit, and it’s been noted that the rich are now “bargain shopping” more, and are also scaling back on investing agressively, all of which points to the fact that they are feeling the economic squeeze that all the rest of America is feeling at the moment, even those that normally don’t bat an eye at 100 dollar fillups and other such expenses.

It’s not necessarily that the rich class is hurting for money, it’s just following the behavior that everyone is expected to during times of economic slowdown, and the upper class is not immune to following the herd during downturns either, just like you and aren’t immune to watching our pocket books either when it seems like the US is having a hard time in multiple economical areas, such as gas prices, energy prices, food prices, and the horrid housing market.

I know there are ways that I have cut back, and I would consider myself to be middle class to upper middle class, and I can afford the gas, energy and food prices, but I still have to consider that the extra money I am spending on these cost increases is money that I could have done something else constructive with, like invest or purchase things that go up in value, or put money (equity) into my mortgage. All that extra money I could have invested essentially in myself is now going to the things that I need to buy just to get by, so to speak.

I’ve tried to only go shopping at a store where I get ten cents off a gallon of gas for every fifty dollars I spend for one thing, this helps offset the cost of high gas prices. I also only buy clothing that is on sale, and have taken to shopping more at second hand clothing stores where I may have purchased more clothes at retail stores.

I’ve also cut back on things that aren’t necessary, like paper plates, instead we use regular plates, also we’ve cut down on making too much coffee and wasting half of it in the morning, and make sure we don’t waste any food now. There are ways in which all of us have cut back, it just depends on where your priorities lie I suppose.