1. A budget shows whether you are living within your means. Since most people have and use credit cards, it is easy to rack up more debt than you can afford. A budget will help you see your limits before you are deep in debt.

2. A budget will help you meet your savings goals, including saving for emergencies. It used to be recommended that you have 3 months worth of living expenses in a savings account. Now days it is recommended that you have up to 6 months worth of living expenses in your savings account.

3. A budget can help your family focus on common goals. If you work on the budget together, and you both follow it, it will reduce arguments over money. One spouse won’t be spending money on something that the other spouse thinks is frivolous. Less arguments plus common goals leads to a happier marriage.

4. A budget reveals areas where you’re spending too much money so you can refocus on your more important goals.

5. A budget can help get you out of debt, or prevent you from getting too far in debt.

6. A budget shows you how to have the money for the things that mean the most to you.

7. A budget helps you sleep better at night because you know what you need to do to make ends meet and pay the bills.

Whether you have a newborn baby or a teenager, you might be wondering, how am I going to pay for college? We have had several questions asked about how to save and budget for college expenses. So I will cover several of the alternatives.

There are many ways to save for college including a prepaid plan, a 529, Coverdell, bonds, or a regular savings account.

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This article is about how to build a savings account and having a savings plan. It can be used for teaching teens to save money, children, and even you. Money saving secrets aren’t secrets at all. They just require application. So here is what you need to do.

1. Pay yourself first. The suggested amount is 10%. Every time you get paid, you should allocate 10 percent to your savings account before paying anyone else. You say you can’t afford to do that? You really can’t afford not to. So to get started, here is what you do.
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We are receiving several questions about existing credit card debt and whether to close open accounts with no balance. So I will answer several of your questions here.

1. Should I close open accounts that have a zero balance?
   • Leave at least one open to show you have more credit than you are using.
   • Don’t close them all at one time. Close one or two and then check your credit report and credit score in about 60 days to see how it affected your score.
   • Close newer cards with zero balances. Keep older cards that show a lengthy and successful credit history.

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We’re interested in hearing if you budget your expenses, and if you do, how do you do it? Do you scratch it all down on paper? Do you use excel? Do you just try to budget using your online banking? If you have a budgeting tip we would love to hear those as well! We want to help everyone get on top of their finances, and the first step is to begin a budget.

The deadline for entries is 8:00pm EST September 8th (09/08/2008)
There are three ways to win:

1. Subscribe To Our Blog By Email

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It is easier to get a credit card while you are a college student then if you wait until after you get out of college. This is because several credit card companies offer college student credit cards because they know that the student’s parents will usually bail them out if the student cannot pay the bill. The student cards will start with a low credit line of up to $500.

If you wait until after you get out of college, it will take you longer to get a credit card if you have not established your credit worthiness by showing your capability to pay back a loan. For instance on the Discover Card Student application it says: “Except for full-time students, you must have a minimum annual household income of $15,000 to be considered for any Discover Card account.” So establishing first time credit while you are a full-time student is the easiest way to get credit established.

The first step for establishing credit is to have a checking account.

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As students are heading back to college, many parents are wondering how to make sure their child has the money they need for school and food, and extra money for emergencies. Prepaid credit cards for teens is a great way to make sure that your teenager has the money that he or she needs.

The advantage of using prepaid credit cards for teenagers is that they can only spend the amount that you prepay to the card company. This prevents them from running up credit card debt.

We recommend the prepaid Visa Rushcard from BabyPhat that allows you to use free direct deposit if you want to add funds to your students credit card every time you get paid. The card comes with a PIN number so it can also be used at ATMs. The advantage of this card is that you can track your student’s spending online.

The minimum amount that can be added to the prepaid Visa Rushcard is $25. The card can also be loaded through PayPal or by mailing in a check or money order. There are also CheckFreePay locations that will load the card for a small fee of $3.95, but there is no charge for the other options listed above.

To check out other prepaid offers, go to Find a Prepaid Credit Card.

The benefit of using a prepaid card is that you do not have to qualify for the card, and your credit report is not checked. There are no interest charges either since you are not borrowing any money. However, they will not establish credit. Tomorrow I will write about how to establish credit.

It was decided that when we founded this site we would always give back to the community that supports us, and as our community grows our giveaways will just get better. Basically we have structured our giveaways in a manner that allows you a higher likelihood of winning the more you participate in our community.

Our goal is to give something away every week, introducing new ways to increase your chances of winning several times a month. There are several ways to permanently increase your likelihood to win as well as temporary ways, which are all outlined in this guide.

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You can file a dispute whenever you have reviewed your credit report and do not agree with the status of an item on your report. If you requested an online credit report, there will be an option on the screen while you are logged in to your report that will allow you to dispute an item. Disputes can also be submitted in writing or by phone to the credit reporting agency.

When reviewing your credit report, remember that there can be up to a 30 day lag between when you pay your bill and when the amount owed is reduced on your credit report. So don’t expect it to reflect recent payments.

One thing to check your credit report for, are accounts that show open that you thought were closed. However, don’t be hasty in closing them if there is no reason to. They may actually be helping your credit score because they show that you have more credit than what you are using.

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You are eligible to receive benefits from a settlement against Trans Union if you had an open credit account or an open line of credit from a credit grantor (including, for instance automobile loans, bank credit cards, department store credit cards, other retail store credit cards, finance company loans, mortgage loans, and student loans) located in the United States anytime from January 1, 1987 to May 28, 2008.

You must register at http://www.ListClassAction.com by September 24, 2008, to be eligible.

You may register for one of the three following benefit options:

1. Sign up for six months of credit monitoring services. If you select this option, you can also register to possibly receive cash benefits in the event of a cash distribution or file an individual lawsuit against the Defendants.
2. Sign up for nine months of enhanced credit monitoring services. If you select this option, you will not receive any further benefits, including a cash payment, and you will not be able to file an individual lawsuit against the Defendants.
3. Register to possibly receive a cash payment. If you select this option, you can also sign up for six months of credit monitoring; however if you receive a cash payment, you cannot file an individual lawsuit against the Defendants.

I selected the 6 month credit monitoring service with a possible cash payout. Cash payouts in class action lawsuits are generally very small, but you have nothing to lose by registering, and you will be able to monitor your credit for free.

One of the things that I didn’t discuss in my previous article, 10 Little Ways to Save Big, is buying pre-loved or lightly used items. Buying pre-owned items can save you, on average, 40% on clothes, furniture, even electronics - pretty much whatever you can think of that you need. Even though your local Good Will might not be the ideal place to do all your shopping, sometimes you can find great deals on great items, and maybe even cool vintage finds.

Looking for a new couch? Or maybe your child is moving out and you want to help them furnish their first place? Consider the local goodwill, or even check out nearby yard sales! Sometimes all those ugly old floral chairs need is a new cover. With a little bit of work, you can turn old and shabby into new and chic. Make a project of it!

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On Friday, 8/15, we will be launching our Credit Card Finder

Before this site was started we scoured the internet for credit card information. The problem we found is that most sites just don’t care about you. They just provide a list of cards and remove themselves from all responsibility of your decision.

The Credit Beacon was founded to help you make the best and most informed decisions regarding your finances. When it comes to credit cards it takes more than a couple bullet points to express what you’re really getting. It takes a lot more than just a site built by a handful of people too, it takes you.

We’ve built a comprehensive database of card offers that we will be constantly adding to, you can easily sort through them to find exactly what you’re looking for. But most importantly you can share your stories about any card you’ve had experience with, we need to start cooperating financially so that everyone can have a brighter future. So all we ask is when Friday rolls around you check out our card finder and tell us more about your personal experiences so that everyone can benefit!

If you have bad credit and have found yourself struggling to pay off your debts, there are lots of little things that you can do to save money. Here’s a list of ten little things that’ll save you a few bucks – and remember, however few they are now, they all add up in the end!

1. Pack your own lunch.

Packing your own lunch can not only be more nutritious for you than grabbing a quick bite at the closest burger shack, but can save you lots of money – eating out is expensive! You could probably buy all the fixings for a week’s worth of sack lunches for what it costs you to have lunch at Ruby Tuesday’s. If you eat out because of the social aspect, consider organizing a pot-luck where everyone brings food from home.

2. Coupons.

Before you go shopping, you should check out the newspaper for coupons that are relevant to you. Many stores even have their coupons online, which you can print from the comfort of home. I just got a coupon the other day for a free 24 pack of bottled water! If you don’t look for the coupons, you won’t know they’re there and you won’t be able to get those savings.

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If you would like to be a winner like Barbara, enter into our next giveaway. You can subscribe (if you haven’t already) and leave up to 5 comments with unique financial questions on the It Pays to Ask Questions Giveaway post for the chances of winning your choice of a $100 Amex Gift Card or a 4GB Ipod. Stay up to date with winners by subscribing!!.

Good luck to everyone and congratulations again to Barbara.

The deadline for entries is 8:00pm EST August 25th (08/25/2008)
There are two ways to win:

1. Subscribe To Our Blog By Email

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Are you one of those people who cringe when you see someone else splurge? Are you a money-saving mad man/woman? Well, you’re not alone. Some of us are just natural savers. We gather money and hog it like there’s no tomorrow. It frustrates us when we see our friends and family spend money so freely. We wonder why our conscious prevents us from buying things that aren’t necessities, even if we do want it really bad. Okay, maybe we have a money-hogging impulsive disorder, but that’s another story. For now, let’s just say that saving money is a good thing and we should get other people to do the same.

Enlighten the Future
Just about everyone gets excited when you start talking about great financial opportunities for the future. I mean, wouldn’t you get excited if I told you you could be rich in a couple years? You can tell your friend about all the wonderful things you can do when you save your money for the future. You can save to purchase a car cheaper, because you won’t have to finance it. You can save for school, so you don’t have to take out loans and pay interest. You can even retire earlier. Saving money doesn’t mean you hog it and just to let it sit somewhere; saving money can reduce the net amount of money you spend on purchases so that you have extra money in the future to spend on more things, like a nice vacation. Saving money lets you buy more, no matter how strange that may seem.

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1. Have a secure mailbox.
   One of the top ways that identity is stolen is through directly stealing you mail from your mailbox. No matter what type of neighborhood you live in you can be a victim. Have a mailbox that has a lock on it or a mail slot on your house door. The harder it is for a predator to steal your mail, the safer you will be.
2. Opt-out of unsolicited credit card offers.
   When you get credit card offers in the mail that you don’t want, it becomes extra garbage that predators can easily use to steal your identity because simple credit card offers contain enough personal information about you for them to do so. Opting out of unsolicited offers is simple and free to do. See our step by step guide to Opting Out.
3. Do not leave your bills in the mailbox for the mailman to pick up.

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Who said money doesn’t grow on trees? You just have to know how to plant one!

Have you noticed how credit card companies and banks make lots of money off of us by charging interest on the debt we owe them? Well I have a solution to outsmart the credit card companies and banks to start making money off of them. It does not require that you have a lot of money already, nor does it require you to be a rocket scientist. Almost anyone can do it. And I say almost because you still have to be careful; we are talking about money here, free money to be precise. This isn’t some scam. It is perfectly legal and there are plenty of people doing it as you read this.

The Concept
You’ve probably heard of leaving money in a high interest savings account or certificate of deposit (CD) to gain interest or invest your money in stocks etc. This is the general concept, but the problem with these methods of obtaining free money is that you have to have money to start with. So what do you do if you don’t have money to start with?

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Washington Mutual (WaMu) is offering a 3.75% APY on their savings accounts! This is not just some introductory rate and you only need to deposit a minimum of $1. (We do recommend depositing more than that to make even more money though.) Wamu is a highly reputable and trusted financial institution with plenty of locations throughout the U.S. They have options for checking accounts, savings accounts, money market accounts, CDs, IRAs, mortgage, home loans and credit cards.

Opening a 3.75% APY WaMu savings account requires you to also open a free checking account with Wamu. WaMu free checking accounts are proud of having:

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for being The Credit Beacon’s Grand Opening $50 American Express Gift Card winner!

If you would like to be a winner like David, enter into our next giveaway which is double the fun as we are giving a $100 American Express gift card. You can subscribe (if you haven’t already) and leave a comment on the $100 Amex gift card giveaway post for double the chances of winning. Stay up to date with winners by subscribing!!.

Good luck to everyone and congratulations again to David R.

The deadline for entries is 8:00pm EST August 11th (08/11/2008)
There are two ways to win:

1. Subscribe To Our Blog By Email

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Higher Interest Rates and Fees

The rule of thumb is the lower your credit score is the more money you will pay for everything. This includes everything from credit cards, loans, mortgage, rent, utilities bills, insurance and the list can go on forever. The point is that a bad credit score means that others can take advantage of you. If you want a credit card or loan, they’ll give it to you, but with a higher interest rate and more fees than anyone else. For example, if you were to pay off a $20,000 car over the period of 5 year and you had bad credit, you will pay $8,000 more in interest compared to a person with good credit.

A lot of people with bad credit who need money resort to using payday loans, which are short term cash advances that are paid until your payday. The interest on these can be over 1800%. Similarly, in desperate times, a person may resort to car title pawning. This is when you surrender the title of your car to borrow up to half of the car’s worth. During this time period the owner of the car can still keep it but if he or she misses a payment on the loan then the car can be confiscated. The interest for borrowing money through car title pawning can be over 800%.

Lose Job Opportunities

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1. I am a hopeless, failure because I am in debt.

Stop being so pessimistic, literally. Your inability to get out of debt is all psychological. Debt is just an obstacle that you have to be motivated to overcome. If you believe that you are stuck, then you are. But if you believe that you will get out of debt, then you will. Some of the most financially successful people in the world such as Donald Trump, had tons of debt to the extent of filing for bankruptcy. But today he has a $2.5 billion fortune because he knew he wasn’t a hopeless failure. It is your own state of mind that will determine who you are and what you are capable of. You are not hopeless and you are not a failure.

2. Your credit card is not opened until you call the company to activate it.

Wrong! Your credit card is opened and shows up on your credit report the instant it is approved. So if you ever decided that you no longer what a credit card after you apply for it because it will hurt your credit score, you can’t just consider it not opened if you don’t activate it. Calling the company for activation allows the credit card to be used and by that time it is already opened.

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