Budgeting

Index Funds, Dowdy to Some, Get a Notable Endorsement [NY Times] "The wealthiest would have fine returns without the volatility and high fees if they simply used indexes to diversify their money across asset classes."

It's property tax assessment time. Here's what homeowners need to know. [The Washington Post] "Even if a homeowner's property tax assessment declines, the tax bill may not."

Questions to Ask Before Buying Disability Insurance [Bucks Blog] "Starting the list with a few dozen questions [you should answer before buying disability insurance."

What's the best use of the energy tax credit? [Smart Spending] "For most homeowners, insulation gives you the best bang for your buck, but you might want to start with an energy audit."

Which Tax Form to Use [Kiplinger] "Use the simplest form to meet your needs and avoid errors."

— FREE MONEY FINANCE  More »

You might be doing well with your expenses as a married couple but making poor investment decisions, causing your financial situation to worsen even though your day-to-day money management has improved.

—>Over at the Mint blog they've posted a list of 10 ways to reduce your car insurance premium. You'll want to contact your current insurer and ask some questions, like whether they offer a discount for paying up front, or if they'll cut you a deal for being a long-term customer.  More »

—>Sears and Toys R Us are among retailers who have brought back layaway programs to help boost sales, reports Eve Mitchell at the San Jose Mercury News. Not all stores think it's worth the effort, so you won't find it at JCPenney, Target, or Walmart. However, if you want to use layaway at retailers that don't offer it, there are now websites that can help.  More »

—>Yesterday I grabbed a notebook app for my smartphone and spent a couple of hours organizing the various content folders—ideas for Consumerist, gift lists for Christmas, things to look up later on a computer—so that I could capture information more efficiently. Wait, why s ths n Cnsmrst? Because The Simple Dollar argues that by keeping a notebook and using it all the time (Lifehacker calls it "ubiquitous capture"), you can end up saving money.  More »

—>Marlene Alexander will buy pretty much anything, at least once, from her local dollar store. Then depending on how well it holds up, she might write about it to warn others. She's put together a list of some of the biggest dollar store failures she's encountered over the past year.  More »

—>The Federal Reserve has released data on consumer debt for August, and for the 11th month in a row we've paid down credit card debt and increased savings. Take that, rate-hiking credit card companies!  More »

—>If you don't know about the Carnival of Personal Finance, it's a weekly round-up of interesting posts from the glut of personal finance blogs and websites that now litter the web. I discovered two of today's posts—the 23 debt-saving tips and the the alkaline-vs-rechargeables story—through the most recent Carnival.  More »

—>If you're still floundering when it comes to paying off debt, here's a great starting place for you. The blog DoughRoller has listed 23 ways to get started on freeing yourself from debt, along with lots of links to tools and other articles or websites that can help.  More »

—>The blog Personal Finance Hour is the home to a weekly live audio show with personal finance bloggers over whatever topics they like. Sometimes the conversation turns inward and focuses on trying to blog for profit, or blogging as a part time job. Sometimes the conversation is about things like remodeling your home or planning for a vacation.  More »

—>We were poking around the NYT archives when we stumbled across this gem, car maintenance budgeting advice for people interested in owning a car ... in 1907. Some of the advice remains the same. Other parts, like how much to pay your driver and how much to budget for repainting the car once a year — not so much.  More »

—>The new government estimates are out on child rearing, and now "a middle-income family can expect to spend $291,570 including inflation to raise a child born in 2008 to adulthood" (not including childbirth or college), reports Reuters. In today's dollars, it works out to between $11,000 and $13,000 annually. If you're planning on having a family in the future, here's another incentive to get your financial house in order first—take control of your debts and spending, learn how to budget, and start saving. You're going to need it, unless you can score a reality show on basic cable.   More »

—>The New York Times says a white roof on your house "can cost as little as 15 percent more than its dark counterpart" yet "reduce air-conditioning costs by 20 percent or more in hot, sunny weather." This is because, scientifically speaking, the color white hates the stupid sun and won't have anything to do with it.  More »

—>Consumer Confidence is down again. For example, the new score is 46.6. NPR says, "It would take a reading above 90 to signal that the economy is on solid footing."  More »

Here are 9 ways to save money on groceries. Did you know you can frequently find your milk or juice for less at convenience stores? [MintLife]  More »

—>Given the state of the economy, it seems like everyone is looking for ways to save on non-discretionary expenses. Lucky for us, The Digerati Life offers some useful thoughts on how to cut back on TV services without turning off media completely. Their five suggestions include:  More »

—>Chase just notified Greg that they're more than doubling his minimum payment requirement. Because he and his wife are carrying such a large balance due to a promotional balance transfer offer a few years ago, this pushes their monthly payment to nearly $1,000.  More »

Here are 5 personal finance podcasts to subscribe to, download, and argue with during your commute or workout. [Automatic Finances] (Photo: uhuru1701)  More »

Given the state of the economy today, is it better for me to reduce my 401k to a minimum and use the extra funds to pay off my credit card debt? This is a good time to put money into the markets, based on my admittedly limited understanding, but with interest rates going through the roof (my personal Chase card went from 12.99 to 23.99), I would like to kick down my cc debt (now at around $6,000) faster. I'm currently only putting 6% in my 401k, and I'm fairly young (35). Have you advice for me?  More »

—>The FDA is set to receive $3.2 billion next year but they don't yet have a plan to make our food any safer. That doesn't sit well with Congressional appropriator Rosa DeLauro (D-CT), who at a recent hearing told Acting FDA Commissioner Joshua Sharfstein: "A lot sounds to me like buzzwords from a past administration."  More »

—>So you want to write a budget, but you're not sure where to start? No Credit Needed has a list of ten simple but necessary steps to take before drafting your first spending plan. Most consumers will already have knocked off the basics like putting their checking and savings accounts in order, but everyone can take advantage of tips like tracking your spending for a full month and making sure you have a detailed list of your irregular expenses. Once you've done your homework, check out our guide to writing a beginner's budget and start mapping out your financial future.  More »

—>Jason writes, "My wife just sent me an email saying that she paid 'too early' (before the new statement was generated) and got charged a 'Late Fee' of $29!" He says she called Capital One and got the fee waived, but it's a good reminder that if you make a payment before the new statement period begins, your card provider will likely apply the payment to the previous statement period, and will still expect a fresh payment from you by the new due date. Just make sure your payments aren't scheduled so early that they're applied to the past and you'll be fine.  More »

—>We've seen how available balances can disappear when lenders cut credit card limits, but SmartMoney points out that lenders can cut your limit below your current balance, causing all sorts of problems. They'll send you a notice, of course, but you may not receive it for several weeks. Your best bet is to set up your own alert system. A web-based financial service (like Mint) will send you an email or SMS alert if your available balance drops below a specified threshold.  More »

How To Cut Back On Dry Cleaning Dry-cleaning isn't the only way to safely clean garments labeled dry clean only, and other methods might even do a better job. But it can be tricky to figure out when to dry-clean and when to hand- or machine-wash. [CR]  More »

—>Our sister publication Consumer Reports knows that you'd like to trim your baby budget without risking the safety of said baby, so they've put together 3 tips that will help you do just that.  More »

—>We spent yesterday at Finovate, a yearly roundup of new personal finance services available online. Here's a recap of some of the afternoon presentations, including a mortgage comparison service that promises greater transparency, a new credit simulator feature from Credit Karma, and a site that uses reverse auctions to get banks to bid on your money.  More »

—>Round 2 of the Finovate presentations includes online financial planning, the "match.com" of stocks, and Facebook banking. Let's dive in and find out what they're all about:  More »

—>I've been dispatched by our cigar-chomping editors to midtown NYC to check out the 14 new personal finance software apps getting demoed at Finovate 2008. I'll be reporting here and letting you know about the latest tools from the frontlines of the personal finance revolution.  More »

—>On The Money's budget calculator makes it easy to determine how much you should be spending across the seven categories that make up any responsible budget. Regardless of income, tracking and limiting your overall spending is a foolproof strategy for keeping your accounts in the black. Though the percents will vary according to geography and personal situation, On The Money's calculator gives you a quick glance at concrete spending targets that you can compare against your credit card bills and bank statements. Give it a try and tell us in the comments what other tools you use to control your spending.  More »

—>Think you'd do a better job at balancing the budget than Presidential Candidate X or Presidential Candidate Y? Now you can! American Public Media has put together the world's most depressing game. You are asked to meet certain goals (you decide what they are, so you can choose to be either candidate, or a treehugger, or a socialist, or a libertarian, or a pr person for Walmart, whatever it is that you actually are) by playing different budget-affecting cards (Example: You can end "No Child Left Behind" and save $110 B.)   More »

—>BusinessWeek has put together one of those accursed slideshows of 25 ways to save money, and while a lot of them are things you've heard before (use credit cards wisely! buy generic or used!), there are a few less common tips that you might not have considered. Here are four that caught our attention.  More »

—>On a tight budget and using equal parts willpower and behavior self-modification? Stay away from the cookie places in the mall. The September 2008 issue of ShopSmart says studies show that even just catching a whiff of your favorite treat can increase your urge to splurge.  More »

—>Almost everyone is looking for ways to save money but they often overlook making cutbacks in areas they consider necessities. It may seem reasonable to do so until you consider that some of these necessities may not be necessary at all. An article by Bankrate.com suggests that if you take a serious look at some of these so-called necessities you may find more savings than you thought possible, therefore, they have put together a list of 12 common "necessities" which could be draining your cash. The list, inside...  More »

Wal-Mart has launched a personal finance website at walmart.com/savemore. It offers tips and saving advice, while also pushing Wal-Mart's own money services and weekly specials. [Wal-Mart]  More »

Trent at The Simple Dollar blog has a post about how to say no, especially to charitable requests. One of his readers describes the problem:  More »

—>CNN asks some money experts for tips on how to teach kids about personal finance. Laura Levine, the executive director of Jump$tart Coalition for Personal Financial Literacy, says she uses a special piggy bank for her 3-year-old son—it has four chambers, "one for saving, one for spending, one for donating and one for investing," and helps teach him that money is not just for "one thing."   More »

—>Kiplinger tries to help you save money on your next airline "flight"—we have to put quotation marks around that word now, since the prospect of actually getting up in the air seems purely hypothetical at this point—with their latest travel article. A lot of the advice boils down to, "Find out what each airline charges extra for, then choose a different airline," but it's helpful to have everything in one article for a quick reference.  More »

—> For the ultimate in pricing transparency when shopping for groceries, use a price book. Frugal bloggers everywhere write about it like it's the GTD of grocery shopping, and our own reader marsneedsrabbits suggested it in a thread earlier this week:

The solution to all this is a price book. It costs whatever a cheap notebook costs you, and saves a surprising amount of money and starts saving you money immediately.

—> RacerX at "Life, Liberty and the Pursuit of Money" has posted the 6 ways he and his wife save money when they go out to eat. Following all of them would make for a noticeably different experience at your favorite restaurant—perhaps more than you'd like. But even adopting a couple of these tips could knock 10% or more off your next fancy meal with the significant other.  More »

—> Would you pay $36 a year to access Quicken on your iPhone? What the hell, why not, right? You already paid for the iPhone! That's probably what Intuit is hoping—and the zillion-dollar iPod accessories market proves there's a lot of "blue ocean" for businesses that want to fish in Apple waters. It launches the product as a web service on January 8th, 2008, with an iPhone-friendly flavor also available then. There are plans to roll out "tweaked" versions for other mobile devices at an unspecified point in the future.  More »

—> Nothing say Christmas like a list, so here's another one. Here are some of the best personal finance ideas blogged this year, chosen by Mrs. Micah: Finance for a Freelance Life. Her top pick is the "debt snowflake" from the blog PaidTwice—it describes the act of finding lots of little ways to supplement your standard income, so that you can add mass to your "debt snowball" to make it more effective.   More »

—> We may indeed have a nation of financially illiterate youths, but despite cries for increased financial education in public high schools, the one program that's historically addressed this—"checkbook math"—has never enjoyed a reputation as a "real" math class because the actual math skills involved are so basic, and it's being phased out as most students avoid it because, as one student says, it "doesn't look good for colleges."  More »

—> Michelle Slatalla, the Erma Bombeck-David Pogue hybrid who writes casual articles about the Internet for the average person (she's the mom who pestered her daughter on Facebook this past summer), has published a Chatty Cathy review of personal finance site Mint.com. Her verdict: it's nice to not have to go to multiple sites; the aggregated information is a good feature; security worried her at first, but she's okay now that she knows Mint is a read-only site and they don't have her account numbers, just user names and passwords; and she has actually used the ads that Mint displays—not to open new lines of credit, but to negotiate lower interest rates for existing accounts.  More »

—> Kiplinger set itself three basic rules to follow for affordable holiday entertaining: "make it a team effort" by splitting hosting duties or having guests bring food, "borrow what you don't have," and " be creative." Following these rules, they came up with ten ideas for holiday get-togethers that even people on tight budgets can pull off. Here are the first three.  More »

—> Trent at The Simple Dollar read a new finance book every week for a year, ranking them according to how original and useful they were, and now he's compiled a list of his top ten picks. According to Trent, if you read these ten books (and maybe the ones coming in at #11 and #12), "You'll have absorbed basically all the useful material in every book on the list."

His top pick is "Your Money or Your Life," by Joe Dominguez and Vicki Robin, a "big picture" book that looks at how and why you spend your money.  More »

—> Don't open any new lines of credit or go crazy with the credit card purchases between your home loan's approval and the actual closing date, warns Ilyce R. Glink (doesn't it look like we just tapped a bunch of keys at random to spell that name?) at Inman Real Estate News. Your lender will pull a second credit report before closing to make sure that you're still capable of paying your loan—so if you've done anything in the interim that could impact your ability to pay, rest assured it will show up.  More »

—> All Financial Matters offers six interesting ways to cut costs between now and the end of the year, and although we don't completely agree with a couple of suggestions, we still think it's worth a look.

1. Actually look at the price tag before you buy each and every thing for the rest of the year.

2. Avoid items marketed for the season. Their example: red and green candles work fine—you don't need "Christmas" candles.  More »

—> Oil is poised to break the century mark, and SmartMoney has a short article that examines the effects it will have on the average American's budget. A couple of reasons why we haven't felt more of these effects so far is that the rising cost has largely been eaten by oil refining companies and their gas stations, and because consumers have actually begun to reduce their gas consumption. However, if the price-per-barrel continues to rise, the U.S. faces a cold winter, and the dollar continues its anemic performance, you can look forward to the following consequences:  More »

—> Too many people wait until they hit rock bottom before seeking help from credit counseling agencies, says a New York credit counseling service. The consequence is that consumers end up limiting "the options available to them without having to make major, and often very difficult lifestyle changes. If they wait too long, debt repayment plans become unaffordable—leaving them more vulnerable to losing assets or having to file bankruptcy."

So how do you know when it's time to ask for help? If your monthly payments are exceeding your monthly income, it's probably a good time. To find an agency, check out wikiHow's How To entry, and use this list provided by Bankrate to ensure the agency will be able to provide the services you need.  More »

—> This professor of finance proposes you take all the fun out of wildly overspending on last-minute gifts for friends and family, and replace it with the measured, predictable joy of a spreadsheet. However, if you follow his advice, the odds will be much better that you'll end the year with healthier checking and credit card accounts.   More »

—> If you're the type of person who thinks "discretionary spending" means "I can buy what I want, when I want," read this person's idea for how to create an Impulse Buy Savings Plan. It gives you a methodology where you can effectively trap your impulse purchases in a cooling-off period, while also seeing how that money would look if it were saved instead.   More »

—> SmartMoney reviews four of the most popular, or at least best-publicized, online budgeting and finance-tracking services: Clear Checkbook, Mint, Wesabe, and Yodlee Money Center. They've created a simple chart comparing features, to help you decide which best meets your needs—for instance, whether you want text message alerts, or the ability to manually enter transactions, and so on. The most robust offering of the four is Clear Checkbook, although it's missing a couple of nice features that the otherwise paltry Mint offers (specifically, text message alerts and merchant-based spending breakdowns).  More »

—>Colder temperatures and higher fuel prices are going to hit consumers in the wallet this winter, according to estimates from the government. Depending on your fuel of choice, heat could cost from 4%-22% more, though most households will see an increase of 9.5%.  More »

—> The Center for American Progress has a article explaining how costs have risen since the last minimum wage increase. According to their numbers, "dinner" has gone up 39.72%, electricity is up 25.02%, and gasoline up 135.20%.   More »

—>Today's New York Times tells the story of seven people who squirreled away enough money to afford a New York apartment; no small feat, considering the average price for a Manhattan studio is approaching $450,000. The seven people, all folks of regular means, realized their dreams of home-ownership with a variety of strategies that are applicable to anyone trying to save extra cash.  More »

Much like previously-mentioned BillMonk and iOWEYOU, Buxfer can track who owes what part of the joint gift, rent or dinner bill for a group. Like Wesabe, it also tracks personal transactions with tags. Two nice bits at Buxfer I liked immediately: the ability to sign in using an existing Google, Yahoo or Facebook account (it doesn't force you to create yet another login!) and the ability to SMS transactions to your account (like Adam's BudgetBot.) Buxfer is definitely worth a look for folks looking to track their money more closely.