Personal Finance 101 Posts of the Day 5/30/07

• Zen Habits gives 10 tips to simplify your budget.
• Ask Mr. Credit Card asks how much do you need to feel rich?
• Life, Lived talks about ways her family saves money.
• The Frugalist gives 21 reasons why it's good to be frugal but not cheap. (I call myself a cheap-a$$ but according to this I'm just frugal. Whew!)
• Mint gives a list of 20 mistakes to avoid during credit repair.
• $1 Million to my Name - Part III in his retirement saving pitfalls series - relying on an inheritance.
• My Financial Awareness talks about things to consider when establishing an emergency fund.
• Mad Money Analyst talks about why starting to save for retirement now is important.
• Advice and Rants gives suggestons on how to join forces with your friends to be frugal.
  

Personal Finance 101 Posts of the Day 5/26/07

• Ask Mr. Credit Card talks about the importance of diversification.
• Money Ning reminds us to keep an eye on mutual fund fees and expenses.
  
• Bankruptcy Law Network has a series on how to deal with debt collections:
• Stop the Harassment
• Statute of Limitations
• Stop the Calls
  

Personal Finance 101 Posts of the Day 5/21/07

• MSN Money talks about the evils of bank fees.
• Bankruptcy Law Network talks about why you should opt out.
• Pro Bargain Hunter talks about how to get a good deal when shopping.
  

Personal Finance 101 Posts of the Day 5/11/07

• Smart Money Daily has a great article about recovering from bankruptcy.
• Make Your Nut gives more advice to new grads.
• Free Money Finance lists 18 ways to save on a small income.
• Money and Such give some tips on how to save on travel.
  

Personal Finance 101 Posts of the Day 4/27/07

• The Frugalist gives 10 alternatives to credit cards for those who don’t want/can’t get one.
• Make Your Nut talks about the benefits of shopping at an ethnic market.
• MSN Money talks about 4 keys to good credit.
• We're in Debt talks about why renting to own is bad.
  

Personal Finance 101 Posts of the Day 4/25/07

• Ask Mr. Credit Card talks about the impact of credit on insurance rates.
• Free Money Finance talks about how much you should be saving.
• Zen Habits gives suggestions on brown bag lunches.
• Queercents talks about the pitfalls of renting your fist apartment.
• Make Your Nut talks about how expensive it is to NOT brown bag your lunch.
• The Simple Dollar takes a look at couples and money.
• Laws of Finance talks about the benefits of paying your credit cards online.
• How I Save Money lists 25 ways they save money.
• Prime Time Money talks about why paying off debt brings you success.
• Personal Finance Advice talks about the different debt payment strategies.
• Finance is Personal gives some advice to those just starting out.

Personal Finance 101 Posts of the Day 4/20/07

• Ask Mr. Credit Card talks about how to choose a consumer credit counseling service.
• All Financial Matters has great advice for college grads.
• We’re in Debt lists 7 warning signs you’re spending too much.
• Free Money Finance talks about ways to earn extra money.
• My Two Dollars talks about the financial benefits of doing what you love.
• Mint talks about how to jump start your credit when you’re young.
• Your Credit Score Secrets outlines 5 steps to fix your credit score.
• Laws of Finance reminds us of an often overlooked budget item.

Personal Finance 101 posts of the day 4/12/07

• Young and Broke talks about how people aren't saving these days.
• Broke Now Rich Later tells us how he's campaigning for a Roth 401k at his job.
• Consumerism Commentary asks if personal finance should be required in high schools. He says no but I strongly disagree.
• The 6 Month Project talks about ways to trim your budget.
• Mighty Bargain Hunter talks about pre-packing your lunch to take to work.
• The Thinking Men talk about how you can get a free credit report.
• Yahoo Finance has an article about how deluded people are about their retirement prospects.
• Free Money Finance asked his readers for suggestions on how to save on a small income (read the comments).
• Fool for Travel gives some great tips on how to save money while traveling.
• MSN Money talks about payday loans and their huge interest rates.

Personal Finance 101 Posts of the Day 4/11/07

• Ask Mr. Credit Card discusses debt repayment plans.
• 3 Debt Consolidation talks about debt reduction mistakes.
• My Personal Finance Odyssey talks about the US savings rate.
• 5 Cent Nickel talks about how to prioritize your retirement contributions.
• The Bargain Queen gives us a lesson in bargain shopping 101.
• Make Your Nut talks about credit scoring and the 7 year myth.
• Canadian Dream lists 10 signs your retirement plan isn’t going to work.
• Everybody Loves Your Money talks about finding the balance between living for today and saving for tomorrow.
• Free Money Finance talks about how Social Security is a rip-off.
• Queercents talks about 101 ways to save a buck or two.

Credit reports. What's on yours?

Oh Cash has a good post about what's included in your credit report and how you can improve your score.

There's a lot of great information in this post I just have a couple of comment.

1. It's usually not a great idea to close old credit cards. This is bad for a couple reasons. 1 - it removes that account from your average age calculation which will lower your score. 2 - it removes that credit limit from your utilization which can hurt your score. Instead, you should try to keep your oldest card open as long as possible. If you must close credit card accounts it's best to close the newest accounts with the lowest limits.
2. Another way to increase your score is to have someone with good credit add you as an Authorized User to their account. With most companies this effectively gives you the history associated with that card which can give you a quick and easy boost. This is a better option than getting a co-signer since with an AU you are not financially tied to anyone.

The biggest thing to remember is that it's important to check your credit on a regular basis. You can get 1 report free from each of the big three credit agencies by going to www.annualcreditreport.com. I usually suggest spreading them out and getting one every 4 months. This gives you ongoing access to your report throughout the year.

Personal Finance 101 Posts of the Day 4/6/07

• Fire Finance talks about the risks of payday loans.
• Money Walks give 10 tips on how to master your savings skills.
• Ririan Project lists 22 myths that can cost you money.
• Wealth Building Lessons talks about how to increase your FICO score.
• Saving Simply talks about why tax refunds are bad.
• Bankruptcy Law New York posts about why he hates pre-bankruptcy credit counseling.
• Money Walks talks about how to become a saver.

Personal Finance 101 Posts of the Day 3/29/07

• Free Money Finance asks: Does having control of your finances make you happier?
• Money Walks talks about saving money by buying in bulk. I'm a big fan of buying in bulk but only if you're going to use it. A good way to get around this, especially if you're single, is to shop with a group of friends and split the take. Then you all get to take advantage of the savings.
• My Money Blog talks about lazy investing (which I'm a huge fan of!).
• The Simple Dollar talks about asset allocation and rebalancing.
• Learn why you shouldn't buy a new car (and definitely don't finance one!).
• Punny Money gives us a list of the 20 dumbest personal finance questions of all time. Now personally I'm a "there are no dumb questions" kinda gal, but I'll admit that I've been asked some questions that are...less than smart.
• 3 Debt Consolidation talks about credit ratings and FICO scores.
• The Digerati Life talks about spending money on looking good.
• Personal Finance Advice talks about how we waste money when we think we’re saving.

Credit Cards vs. Debit Cards

Smart Money has an article about how Credit Cards Offer Better Protection Than Debit Cards.

This is a conversation I've had several times and it's just one of the reasons that credit cards are better than debit cards in my opinion. Aside from the fraud protection, credit cards offer other benefits like:

1. Rewards on purchases. I make about $400/year on rewards from purchases. This is free money and anyone who has taken one of my classes knows I'm all about free money.
2. Interest earned on delayed payment. Debit cards take that money out of your account immediately which means you get no benefit from it. By using a credit card, you get a few weeks to hold on to that money and earn some more interest from it. With high yield savings accounts like HSBC, Emigrant and others offering rates over 5% and ING's new 4% checking interest rate, this is a chance to make a little extra cash.

So basically, I'm a big fan of credit cards. As long as you can pay off your balance in full each month, I don't see any reason to use a debit card over a credit card.

Personal Finance 101 Posts of the Day 3/25/07

• Ask Mr. Credit Card lets us know about common credit report errors.
• Money Under 30 talks about letting go of your past so you can move forward.

Personal Finance 101 Posts of the Day 3/20/07

• Wealth Building Lessons gives us some tips on How to Become a Millionaire.
• The Digerati Life tells us about the mistakes he's made that cost him $1000.
• Money and Such talks about how to use credit cards to help with your debt.
• Your Credit Score Secrets talks about debt to credit ratios and how they impact your score.

Personal Finance 101 posts of the day 3/6/07

• Credit Card Lowdown gives 77 tips on how to live without credit cards.
• Debt Consolidation News lists the 100 most famous financial quotes.

Personal Finance 101 posts of the day 2/27/07

• The Skilled Investor talks about why diversification is important.
• Getting Green tells us 10 facts the credit card industry doesn’t want us to know.

Be careful with those balance transfers

Young and Broke did a great post about Balance Transfer Boo Boos.

Balance transfers can be great but there are definitely some things you want to look out for and Y&B covers the main 5. Those who are playing the balance transfer game (whether it's to pay of debt or earn money) should definitely check it out.

Borrowing money to pay off debt

War On Credit Cards posted a discussion about whether you should borrow money to pay off debt. They are in support of it if you can get reduced rates on your debt and I agree with some of their points. The biggest concerns I have are when people do the following:

1. Trade unsecured debt for secured debt by using money from a HELOC to pay off credit cards. There are advantages and disadvantages to this, the main being: you get a lower rate but you potentially put your house on the line. My biggest concern with this method is, if you haven't learned your lesson, you can put the debt on your HELOC and then you run up your credit cards again compounding your problem. There's also the problem of, if you hit a financial rough spot and can't pay your HELOC payment, with credit cards they just trash your credit but with a HELOC they can take your house. It can be dangerous so keep that in mind.
2. Borrow money from a 401(k) or 403(b). It sounds like a great idea because you're paying interest (at a low rate) to yourself. However there are some dangers. First, if you lose your job, most likely your loan is due within 60 days and if you can't pay it, it's considered a taxable distribution and you have to pay taxes and penalties. Second, many times if you have an active loan you can't make additional contributions. This may mean that you miss out on employer match. It definitely means that you miss out on the ability to contribute (you can't replace missed contributions) which can drastically reduce the money you have in retirement since you also lose all of those earnings. Third, as in the second example, when the money is out of your account for the loan it isn't earning for you and you can never replace the benefits of those compounded earnings which could have a much larger impact on your financial future than carrying credit card debt.

So, basically, if you're borrowing money from credit cards or prosper or something similar in order to get a lower rate then go for it. However, if you're borrowing from your house or retirement, please, think long and hard because if something happens you can really do serious damage to your financial future.

Personal Finance 101 Posts of the Day 2/18/07

• Debt Free reminds women to protect their credit.
• Getting Green talks about how he lives on $600/month.
• The Stubborn Capitalist lists 9 fallacies of the poor.