Five Simple Ways To Spend Less

Budgeting and living within your means is often perceived as a difficult, daunting task. In reality, there are plenty of simple ways to trim your budget all they require is a little time and effort.

1. Pack your lunch.
Instead of spending upwards of $40 - $50 a week eating out, take your lunch with you to work. Even if you go out for relatively cheap meals, the total cost (plus tax and tip) adds up quickly. A great way to do this is to cook double or triple the amount you'll need for dinner the night before, and set lunch portions aside ahead of time.

Another way you can simplify the entire process is to cook a large amount of food over the weekend say 8-10 chicken breasts, a big lasagna or pasta dish, for example and portion it out for lunches and dinners throughout the week. If you're pressed for time and don't have anything prepared, head to your local supermarket and pick up a few microwavable meals and other healthy items like single-serving-size frozen vegetables or fruit packs. This option is a bit pricier than cooking from scratch, but still much cheaper than eating out every day.

2. Hand-wash your car.
Skip the $5 - $10 drive through car wash and soap up your car yourself. It may take a bit longer than the drive through option, or it may not, depending on how far you have to drive to get to the car wash in the first place. Regardless, washing your car yourself can save you $30-plus per month. If that doesn't sound like much, think of it this way: it adds up to about $150 per year.

3. Take a walk.
Next time you need to run to the corner store, to drop off your child at soccer practice a few blocks away, or to pick up a couple of items at your neighborhood grocer, skip the car and make the short trip on foot. You'll conserve gasoline which is good for both your budget and the environment and you'll be doing something healthy for yourself. It's a win-win situation.

4. Enjoy the outdoors.
Next time you're looking for a fun family activity, skip the movie theater or other venue in favor of the great outdoors. Most cities and towns have a wealth of public parks, complete with jungle gym equipment, swings, shade trees and sunshine everything you need for a fun afternoon of quality time with your family. And it's free!

5. Check out consignment.
Looking for a new top, bag, or shoes? Head to your local consignment shop instead of the mall odds are you'll find great deals on quality items (though you may have to do a little digging). Many cities have upscale consignment shops, too, offering designer items at a steal of a price. And next time you clean out your closet, make a pile of your best give-away items and take them to the consignment shop instead of Goodwill. You may just pad your wallet with some extra cash. If the items don't sell, you can opt to pick them up after a set period of time (usually about three months) or have them donated for you.

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The Most Common Home Insurance Claims

Buying home owners insurance is mandatory in most states and is put there as a measure of protection we can not live without. Premiums may be costly, however, in the event of emergency, your policy can save you from rack and ruin. According to a comprehensive insurance study conducted from 2000 to 2007, Texas insurance claims have been dominated by water damage issues. Some of the most common insurance claims to be collected also include fire, individual personal claims and even dog bites. You can never second guess what kind of incident may cost you a payout, so be sure to secure your home with the maximum coverage. According to statistics from the nation's leading home insurance companies, these four claims top the list:

1. Water Damage.

Water damage coverage is not just for flood zones. Internal circumstances such as a water heater burst or careless operation of a bathtub can occur and cost you big bucks to repair. Drainage overflows, hurricane conditions and a leaky roof are just a few of the monetary make-up of the water damage scenario.

2. Accidents.

Home owners are just as accountable under the law for someone being injured on their property as is the commercial policy owner. We tend to think its grocery stores and restaurants that have to deal with slip and fall injury claims, however, the home owner who is host to an accident runs the risk of financial ruin if the injured party sues. Although most people welcomed into the home are family and friends, don't let the cordial relationship fool you into thinking that they will not sue if injured. In addition, handy men and contractors may pursue a liability claim should they trip on an uneven cobblestone or fall from a ladder. Be sure your policy is complete and comprehensive to cover all manner of personal injury on your property.

3. Animal Attacks.

Dog bites are a frequently seen claim as dog owners are percieved as prime targets for those who wish to collect for a canine attack. If you own a dog, be sure your policy has a personal liability up to $100,000 in the event that Rover see's fit to nip. Unfortunately, the claim courts do not probe too deeply into the circumstances for the bite, and don't care whether the recipient had it coming or not. Dog owners are responsible to keep their pets under control or shell out a fortune in court.

4. Fire Claims.

Fire insurance is essential to rebuild a life reduced to ashes, but be sure that you can back-up and validate all your recovery money. Insurance claims professionals are willing to help, but are also trained to sift through hyper-inflated monetary losses. When declaring your possessions and valuables, the best results ensue when you can assert the exact worth of the object, rather than rounding the figure out with a guess. Extended fire insurance plans may also cover the costs for temporary housing and living expenses. These details should be carefully considered before committing to a fire insurance policy.

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Conserve H20 And Watch Your Savings Grow

It is not enough that you are aware of water being a very important resource. You should also be aware that it is a very scarce resource. In some countries, women walk tens of kilometers to fetch clean water. Before you soak on that bath or let another dripping faucet off the hook, know that when you conserve water, you not only add up to your savings, but your water conservation efforts constitute your social responsibility, too.

Here are a number of tips on how you can conserve water, save to fatten your wallet, and also help others get their fair share of this precious resource.

1. Repair leaking faucets and bathroom fixtures. That faucet or cistern drip adds up to gallons of water wasted and water bills being bloated. A wrench and some sealer may be sometimes all it takes for you to do your share of water conservation.

2. Learn a few water-saving tricks like putting a brick inside the cistern so that instead of 7 gallons being flushed down the drain, you are down to 5 or 6 gallons. Don?t flush trash in the bowl; not only do you waste clean water but you run the risk of your toilet being clogged, too. Turn off the shower while you are lathering; you save on water and you save on the shower gel. Don?t let the faucet run when your brushing your teeth; fill a glass with water and proceed to brush. Your dishwasher drinks up dozens of gallons of water so optimize each run by having all your dishes done one-time. Same holds true for your washing machine: wash at the machine's optimum load, not a few hankies and undies at a time.

3. Don?t flood your lawn with the automatic sprinkler; make sure the grass just gets the required amount of watering and turn off that sprinkler on time. Your garage or driveway may be awash with oil spills but before washing them off, sprinkle sawdust or sand first so that don?t use that much water washing those spills off. The patio and the gazebo are dusty and strewn with dry leaves? Of course you can wash the dirt away but if a broom and pan will do, why waste that precious water?

4. The exterior walls of the house and the fences are in need of a wash-over but you can time it during the next rain-shower so that you don?t use as much water as when you do clean during a hot sunny day. The glass windows can maybe use just a damp cloth and old newspaper to have that sparklingly clean look instead of pouring water on them.

5. Teach your kids and other house mates to be responsible in their use of water. Turning off the faucet or the shower to its tightest takes just a little effort and ensures there are no precious drips. Don?t let the tub overrun; they can soak and yet be responsible at the same time.

Follow these simple water conservation tips to help the environment and your wallet at the same time.

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Top 7 Tips For Repairing Bad Credit To Purchase Or Refinance A Home

Your credit report and credit score makes huge differences in your life, and in your finances. If you have a great credit score, your home, car, insurance, and more will cost you thousands less because you are deemed ?credit worthy.? If you have poor credit, you can be denied a home loan, refinance, and even auto insurance. Yet, most people have absolutely no idea what is necessary to improve their own credit score to accomplish their goals. If you follow these tips, you are sure to see your score improve.

1) Avoid Fee Credit Repair Services
Everyone has seen the credit repair signs on the side of the road and the advertisers online promising to fix your credit ? for a fee. Although there may be reputable credit repair specialists somewhere, I have never met one, and I have dealt with many ?credit repair specialists.? If you choose to enter into a contract with a ?credit repair specialist? you will likely hear from them only once per month ? when their service fee is due.

However, there is quality help available. Find a Realtor or Mortgage Broker who specializes in credit repair. The beauty of this arrangement is that your Realtor or Mortgage Broker will not earn their commission until you obtain the credit score necessary to purchase a home or obtain the refinancing terms you want. You will pay for results, not promises.

2) There's No ?Magic Bullet?
These same ?credit repair specialists? will try to sell you on their own ?magic bullet.? They will claim to have found a loophole in credit law that either: 1) Allows them to successfully dispute your collections and have them erased ?or- 2) Dispute the manner in which the collections were filed in order to have them erased.

Creditors typically are in the position to loan money because they are very organized, have long memories, and are up to date on credit law. It is possible to dispute credit charges, and it is possible to have legitimate collections removed from your credit report. However, this has one BIG problem: The collections will reappear on your report within a few months.

Your ?credit repair specialist? may dispute your charge, at which time the creditor has 30 days to respond. If the creditor does not respond within 30 days, the collection is removed. However, as soon as the creditor's reporting cycle again lands on your file, it WILL be reported, and it WILL reappear on your report. This is why you may find someone who claims to have had a good experience with a ?credit repair specialist.? If you speak with the same customer 2-3 months later, they won?t have the same praise.

3) Borrow Money
This may seem counter-intuitive, but it's absolutely essential. If you have bad credit, you will have to re-establish good credit in order for your score to go up. The only way to establish good credit is to borrow money. Borrowing does not necessarily mean putting yourself into debt. Do you need to purchase something from Best Buy? Put it on your Best Buy card. Do you buy gas on a regular basis? Apply for a new gas card and use it. Groceries? Use a credit card. The key is to maintain the same level of spending but to increase your use of credit.

4) Pay It Back On Time
Now that you're borrowing money on a consistent basis, you have to pay it back in a timely fashion. If you don?t pay your bills on time, your score will go down ? and fast. Timely, in this case, means no more than 30 days late. That's the good news ? just because your credit card company charges you a late fee doesn?t mean that they've reported you late to the bureaus. Make it a habit of paying ALL your bills on the same day of the month ? that way you only have to go down the list once and you'll ensure that you avoid any late fees, and any 30 day lates.

5) Decrease Your Revolving Credit Balances
If you already have credit card debt, you need to take a hard look at how it's distributed. Ideally, every card will be below 35% of its limit, but it will also help you quite a bit to keep them under 50%. You can accomplish this a number of ways. If you have money in the bank, pay the cards down ? there's not a savings account in the world that will pay out the interest your creditors charge you. If you don?t have the money to pay the balances down, ask your creditors to increase your limit ? oftentimes, they will. Finally, if you have one card maxed out and another with a low balance, transfer some of the balance from the maxed out card onto the low balance card ? or open a new account and transfer part of the balance there.

6) Open a New Revolving Line of Credit ? Or Two
If you don?t have any revolving credit (Credit Cards) then it's time to open two accounts. If you have Credit Cards in collection, then you will probably have to get secured cards. A secured credit card will require that you deposit money with them in order for you to receive a credit card. This will feel like a debit card, but it's not. If you deposit $300 with your bank to receive a $300 line of credit, you actually have two separate accounts. When you charge a balance to your line of credit, you will have to pay it back - the funds will not be deducted from the initial $300 you deposited. After you've opened your two lines of credit, use one for groceries and another for gas. Gas and groceries are two expenses that almost everyone has, and that almost no one will increase their spending on just because they are able to.

7) Buy a House
If you don?t already own a home, you are probably working on your credit in order to purchase your home. However, be very aware that your credit should skyrocket after you've made 4-5 mortgage payments on your new home. This means that you shouldn?t worry too much about your interest rate ? you should worry more about getting the approval on your home. Avoid a pre-payment penalty on your loan, and plan on refinancing your higher interest loan for a much better monthly payment about 1 year after your purchase.

Credit scoring can seem very confusing and very intimidating. Unfortunately, there are a lot of uneducated professionals who claim to understand the scoring models but don?t. Find someone who specializes in credit repair and who has a vested interest in the success of your repair program. Follow these tips, give it some time, and watch your scores increase!

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Mortgage Rates Defy Expectations

The 30 year rate fell from 5.07 to 5.06 this week. This is the 3rd week in a row where interest rates have either fallen or stayed flat.

The 15 year rate stayed flat at 4.39. The 5 and 1 year arms were mixed with the 5 year arm falling slightly from 4.03 to 4.00 and the 1 year arm rose from 4.22 to 4.25. Below are rates from the weeks from Apr 01, 2010 to Apr 29, 2010 and rates from October 15th (6 months ago).

Apr 29, 2010
30-fixed 5.06 15-fixed 4.39 5 ARM 4.00 1 ARM 4.25

Apr 22, 2010
30-fixed 5.07 15-fixed 4.39 5 ARM 4.03 1 ARM 4.22

Apr 15, 2010
30-fixed 5.07 15-fixed 4.40 5 ARM 4.08 1 ARM 4.13

Apr 08, 2010
30-fixed 5.21 15-fixed 4.52 5 ARM 4.25 1 ARM 4.14

Apr 01, 2010
30-fixed 5.08 15-fixed 4.39 5 ARM 4.10 1 ARM 4.05

Oct 15, 2009
30-fixed 4.92 15-fixed 4.37 5 ARM 4.38 1 ARM 4.60

So the market has made me a liar. I thought we were going to see some volatility in interest rates over the month of April. Instead rates have stayed remarkably flat. Besides the week of April 8th mortgage rates stayed between 5.06 and 5.08. At 5.06 we are also near 4.93 which is the lowest mortgage rate seen thus far in 2010. This is kind of surprising since we have been expecting to see rates increase over the last month.

So rates are one thing but it's also informative to see actual mortgage payments. We took today's rates and using our mortgage calculator we determined the rate for a 200k mortgage. We also did the same thing with rates from April, 15 2010 and rates from October, 15 2009.

Apr 29
30-year $1080.98
15-year $1518.76
5-year ARM $954.83
1-year ARM $983.87

Apr 15
30-year $1082.21
15-year $1519.78
5-year ARM $964.07
1-year ARM $969.88

Oct 15
30-year $1063.88
15-year $1516.73
5-year ARM $999.16
1-year ARM $1025.28

So as we can a mortgage payment today is pretty similar to what we saw 2 weeks ago. In fact mortgage payments only decreased by 11/100 of one percent.

So what is going to happen moving forward? It's hard to tell. The predications that the government not putting resources into buying mortgage backed securities could steal lead to more up and down fluctuations in mortgage rates but we have certainly not seen that this month.

Overall I think that rates are either going to stay roughly flat or rise drastically. There is simply not that much room for them to fall. Rates are currently 5.06. The lowest they have even been is 4.71 (which we saw in 2009) and the highest was above 15 percent. So what is our advice? Basically if you are planning on getting a loan I would do it sooner rather than later. Also I would lean for a 30 year rate instead of an arm because we expect rates to be higher in 1 to 5 years than they are today.

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