The birds are singing and the flowers are in full bloom. Trees are getting their leaves back, and the kids are playing outside again.

It’s official: Spring is here.

Personally, I think spring is the perfect time to take a fresh look at your finances, from your savings account to your insurance policies. After all, the holidays are long gone (which means your spending is probably back to normal), and you’ve just filed your income taxes. It’s a great opportunity to sit down and take stock of your financial situation. From cutting down on expenses to taking the stress out of managing your money, spending an afternoon de-cluttering and simplifying your finances will make life a little easier.

Not sure where to start? Read on for my list of seven things you can do today to give your finances a sleek new look for spring:

1. Size up your spending. Sit down with your checkbook and find out where your money’s going and where you can cut corners. Whittle down your monthly expenses by cancelling subscriptions to magazines you don’t read, or ditching the costly gym membership. And don’t forget to look at things like your cable TV bill and your cell phone plan – if you’re paying for extras you don’t actually use, get rid of them. In today’s economy, we can all use a little extra cash – and trimming your monthly spending is a good place to start.

2. Go paperless. Nowadays, almost everyone – from your utility company to your cell phone provider – offers paperless billing. Of course, going paperless is good for the environment, but there are lots of other benefits to saying goodbye to traditional, paper bills. Not only will you save money on postage, but many companies offer automatic payment options or allow you to pay your bills online – you’ll never have to worry about late fees again. And, to make life even easier, check out my next tip . . .

3. Enroll in online bill pay. Another great way to simplify your monthly bills is to take advantage of your bank’s online bill pay feature. Instead of writing a check to, say, your electric company, then mailing it and waiting for the check to clear, online bill pay works in an instant. Your bill is paid sooner (usually within 24 hours), and your account balance is updated – all in one quick, easy step. Most banks offer this service free of charge, but it’s a good idea to check with your bank to get the details.

4. Sign up for overdraft protection. If you haven’t already, now’s the time to give yourself a little extra security in your bank account. After all, mistakes can happen – a transaction you forgot to deduct or a check you didn’t remember to write down – and even one tiny error can add up to a hefty bank fee for insufficient funds. If you’ve got a savings account, make sure it’s linked to your checking account with overdraft protection. Better safe than sorry.

5. Tackle your debt. Credit card debt can seem overwhelming, but there’s no time like the present to start whittling it down. Whether you owe a lot or a little, there are a few things you can do that will make a big difference. First, check up on your credit report – your credit score can have a huge impact on your interest rates, so make sure that everything on your credit report is accurate. If you find errors – dispute them. Next, shop around and compare interest rates – it might make sense to use a balance transfer to take advantage of another company’s lower interest rate (be sure to read the fine print and proceed with caution to avoid astronomical transfer fees or sky-high interest rates after the introductory period is over). And finally, make sure you’re paying more than your minimum balance every month – even a few dollars over can help knock your debt down faster.

6. Use your tax return wisely. If you’ve got a little extra coming back to you this year, it may be tempting to blow it on something frivolous like a vacation or a shopping spree. This year, do something smart with that extra cash: Start an emergency fund (if you don’t have one already). A good emergency fund should be enough to keep you afloat for three months, including mortgage payments, monthly bills, and food. If you already have a hefty emergency fund, consider using your tax return to pay down your credit card debt or take another bite out of your student loan or your car note.

7. Review your insurance policies. Sit down with all of your insurance policies – life, home, and auto – and check out exactly what you’re paying and how much coverage you have. After that, hop online and do some comparison shopping – most insurance companies will give you a free quote, and a little research may help you save hundreds of dollars a year.

Giving your finances a spring makeover pays for itself – it only takes about one afternoon, and just a few adjustments can add up to less financial stress and more cash in your pocket. Here’s to a happy, financially savvy spring!

Copyright © 2009 Reality Media Inc.

Looking forward to retiring someday? Who isn’t? Whether you’re in your twenties and working your way up the corporate ladder, or you’re a 50-something on the home stretch of your career, you’ve probably dreamed of a day when you can kick back and enjoy some hard-earned downtime.

Sounds fantastic, sure. But there’s a catch.

In order to retire, you’ve got to have a solid retirement plan. Problem is, most of us know we need retirement, and some of us even participate – halfheartedly – in our employers’ retirement programs, like 401(k) s and the like. But we make mistakes. Big ones. From not enrolling in a 401(k) at all to cashing out when we move on and move up, these errors in judgment can add up to become serious problems when you’re ready to retire.

Not sure if you’re getting the most out of your retirement plan? Don’t panic – no matter how old you are, there’s still time to beef up your retirement. Unless, of course, you want to work forever. Read on for the five most common retirement mistakes – and what to do if you’ve made one.

1. Not enrolling in your company’s 401(k) program. Okay, so this sounds like a no-brainer. But, a surprising amount of workers just don’t enroll, period. This is especially true of younger workers – usually folks in their 20s and early 30s – who figure they’ve got plenty of time to think about retiring. It’s hard to think long-term, especially if you’ve just entered the workforce. But, there’s no time like the present. If you’re not participating in your company’s retirement program, you’re really missing out, especially since most companies match a portion of your savings. Think about it: It’s free money. I repeat: Free. Money.

Why would you turn that down? Your company-sponsored retirement program is your first step toward a secure retirement. Enroll as soon as possible, and you’ll instantly get a leg up on your future financial situation.

And if you’re already enrolled, keep reading . . .

2. Enrolling in your company’s 401(k) – but not contributing enough. While it’s true that enrolling is better than not enrolling, many workers don’t take the next step: upping their contributions. Even if your company has automatic enrollment – which is becoming increasingly popular – most corporate retirement programs are set at a default rate of 3% of your income. Sure, it’s better than nothing. But, when you consider that most financial experts recommend a contribution of at least 15%, it makes sense to be proactive and up your contribution to the maximum.

The best part? The more you contribute, the more your employer matches – up to a certain amount. So it’s in your best interests to put away as much as possible. Plus, since 401(k) contributions aren’t taxable, the more you save now, the less you’ll wind up paying in state and federal income taxes. It’s a sweet deal.

Not comfortable with the maximum? No worries. If 15% is too big of a hit at first, start slowly: Up your contributions gradually as your income increases. That way, you won’t feel the pinch as much.

3. Putting too much stock in your company. Or anywhere else, for that matter. Maybe you’re not a financial whiz. Maybe you don’t know a stock from a bond – you just know that your money has to go . . . well, somewhere. It’s tempting to simply stick your retirement dollars into company stock options and hope for the best, but the results can be disastrous if your company goes belly up. Enron, anyone? Ditto for putting all your money into stocks. Or bonds.

You’re much better off with a balanced retirement portfolio comprised of a variety of investment vehicles. Most financial experts agree that a solid, moderate investment portfolio should be diversified – for example, depending on your age and your investment goals, you might choose a combination of stocks and bonds. And don’t invest everything in company stock. Putting all of your eggs in one basket is just too risky.

The good news is many companies offer services like free financial advice and professional retirement management to make sure you’re getting the most for your retirement dollar. If you’re not sure about your 401(k), schedule an appointment and find out what your money is doing.

4. Borrowing from your retirement funds. Big mistake. Huge. Some people think that borrowing from their 401(k) is a better option than taking out a bank loan – after all, it’s their money, right? Yes and no. Technically, it is your money. But, it’s still a loan. And you still have to pay it back – there’s no getting around that. At best, you’re simply stealing from yourself, with interest. At worst, think about what would happen if you get laid off: Now, you’re not just unemployed, you’re in debt.

If you’re tempted to borrow from your retirement, take a long, hard look at your reasons: If you’re doing it to pay down your credit card debt, for example, you may want to change your spending habits before you borrow money – from anyone.

5. Moving on and cashing out. They say that most of us will change careers or companies several times during our working years, from switching fields entirely to moving to different positions in different companies. So, what do you do with your 401(k) when you’ve just scored a new job at a bigger company, along with a fatter paycheck and better benefits?

You have a few options. But don’t – under any circumstances – cash it out.

Like mistake #1, younger workers are most prone to cash out their 401(k) when they change companies. But, by the time you’re finished paying penalties and taxes, you’ll be lucky to get half of what you worked so hard to put away. Instead of cashing out, you should leave it alone or roll it over to your new company’s 401(k) – or, if your new company doesn’t offer a 401(k), roll it into an individual IRA – any of those are good, common-sense options. But fight the urge to take the money and run. In the end, you’re simply draining your future funds.

If you’re guilty of some of these mistakes, you’re not alone: Many workers don’t quite have a handle on their retirement. But remember, it’s never too late to turn things around and start saving. If you have a 401(k), think about stepping up your contributions or diversifying; if you don’t have one, now’s the time to start.

Here’s to a happy (and early) retirement!

Copyright © 2009 Reality Media Inc.

Credit cards have gotten a bad rap recently – in today’s economic climate, horror stories of high interest rates and sketchy lending practices have convinced many consumers to stop charging and just pay cash. Like most stories in the news, there is some truth in these claims – after all, when you use a credit card, you are responsible for paying the money back, plus any finance charges associated with your purchases. All those fees can add up to a pretty hefty credit card bill if you’re not careful.

So, why use credit cards? Isn’t it smarter and safer to use your debit card?

Well, yes and no.

When it comes to making a choice between using your debit card and your credit card, the answer isn’t always black-and-white. In the “credit vs. debit” debate, it seems that the answer lies somewhere in the middle – used responsibly, both cards have distinct advantages and disadvantages, depending on the type of purchase you’re making and how you track your spending.

Not sure which is right for you? Here are some of the main differences between the two:

Security

Credit Cards: In many cases, credit cards offer a higher level of protection if your card is lost or stolen. Credit cards are protected by federal laws, so if your card is stolen, you won’t end up paying for purchases you didn’t make; most credit card companies cap customer liability at around $50 (of course, it’s a good idea to check with your credit card company and find out exactly what their policy is). And, because your credit card isn’t tied to your bank account, you’re not out any money while charges are under investigation.

Debit Cards: Debit cards don’t come with as many federal protections as credit cards when it comes to purchases you didn’t make. With debit transactions, the burden is on you to prove that your card was stolen and that you didn’t spend, say, $600 on stereo equipment. Plus, your debit card is tied to your bank account: If it falls into the wrong hands, your bank account may be drained in a matter of days, leaving you high and dry while your case is being investigated. Protection for debit cards can vary a lot – it’s a good idea to call your bank and find out exactly how much security you have.

Costs

Credit Cards: Here’s where credit cards can get you in trouble if you’re not careful. Sure, it’s easy to buy now and pay later, but if you pay too much later, you could end up paying some hefty interest on your purchases. After all, credit purchases are basically loans – when you swipe your card, you’re promising to pay that money back. If you always pay your balance in full, and on time, you won’t pay any interest or finance fees. But, if you let too much debt pile up, you’re looking at hundreds – even thousands – of dollars in interest. So, that $50 pair of shoes you just had to have may end up costing you $100.

Debit Cards: Debit cards are linked directly to your bank account. So, if you don’t have the money, you can’t spend it. That means that if you put $100 on your debit card at the grocery store, that’s all you pay. Period. However, it’s critical that you keep track of your bank account balance before you start spending: Even if you don’t have the money in your checking account, your bank may approve the transaction anyway, leaving you with some hefty overdraft fees in the process.

Rewards

Credit Cards: Most credit card companies offer extra incentives to their customers, like airline miles or cash back on certain types of purchases. Additionally, your credit card company may offer things like extended warranties on big-ticket items, or insurance on things like car rentals or airline tickets.

Debit Cards: As more and more consumers reach for their debit cards, banks have stepped up – now, many debit cards come with bonuses to help you get the most from your debit purchases. For example, Bank of America offers “Keep the Change,” which rounds all debit transactions to the nearest dollar and deposits the difference into your savings account. And, Chase features “Leisure Rewards” – debit card users earn reward points for debit purchases and can redeem them for gift cards and merchandise.

Credit Score

Credit Cards: When you use your credit card, your activity is monitored by credit reporting agencies. So, your spending habits, payment history, and even the amount of credit cards you have all affect your credit rating. The good news is, if you use your credit card responsibly, your credit score will show it – it will be easier to get approved for a home mortgage loan or a car note. But keep in mind that if you don’t pay on time or spend too much money, your credit score will show that, too – you may find it hard to buy your dream home down the road.

Debit Cards: Unlike credit purchases, debit transactions don’t affect your credit score. So, while your credit rating won’t suffer if you accidentally overdraft, it also won’t benefit from responsible spending. If you’re only using your debit card, you aren’t building credit.

The Verdict

In the debate between credit cards and debit cards, there’s no clear winner. Credit cards aren’t inherently evil (when used responsibly), and, depending on your financial goals, debit cards don’t always help you in the long run.

So, credit or debit? The choice is yours. The important thing to remember is that, when used with care, both cards have their advantages.

Copyright © 2009 Reality Media Inc.

In today’s economy, we’re all trying to make our hard-earned dollars work harder. Whether it’s saving a few dollars at the grocery checkout or finding cheap (or free) entertainment, there are lots of ways to live comfortably for less.

Not sure where to start? Here are five things you can do right now to cut down on your expenses:

1. Cut Your Grocery Bill Down to Size. Some people still believe that when it comes to food shopping, you only have two options: Buy cheap junk food or fork over half your paycheck for healthier options. Fortunately, that’s not the case: With a little work on your part, you can find money-saving deals on good (and good for you) food. Start by clipping coupons (the cost of a Sunday paper is well worth the savings you’ll find inside) and reading the grocery store flyers you get in the mail. The one good thing about today’s economic climate is that many grocery stores are competing to have the lowest prices – take advantage of the deals and shop at the store that offers double coupon savings or great buy-one-get-one-free deals. But remember to stick to things that are actually on your grocery list: You don’t save if you buy stuff you don’t need.

2. Buy Used. “Pre-owned” isn’t just for cars anymore. From clothing to furniture to electronics, chances are you can find what you need without blowing your budget. Cruise thrift stores or secondhand stores, and don’t forget to check out websites like Craigslist or Freecycle to find cheap or free items instead of paying full price at a big department store. And, don’t forget to get the word out to friends and family if you need something – your Aunt Gertrude might just have a coffee table that she’s dying to get rid of, and your best friend may have an extra inkjet printer that he wants to unload. You don’t know unless you ask.

3. Start a Book Exchange. Or a DVD Exchange. Or a video game exchange. Entertainment can be expensive. But, whatever you’re into, you probably know some people who share your interests. Books, movies, and games are great ways to have fun at home, but they’re not always cheap. Instead of paying full price for entertainment, try lending and borrowing from friends instead. Trade that great new novel you just read for a DVD you haven’t seen yet. The best part? Your friends don’t charge late fees. It’s a great way to keep yourself and your family entertained – without spending a fortune. And, speaking of entertainment . . .

4. Cancel Your Cable Service. Seriously. This one may be a little scary at first, but the price tag that comes with even the most basic cable package can be scarier. Don’t get me wrong – TV can be a great source of family entertainment, but cable service in some areas can run upwards of $100 a month. Instead of paying for your favorite shows, rent series from your local video store, or watch them online instead – networks like NBC and ABC offer many of their shows on their websites, free of charge. And, if the thought of losing your cable is just too much to bear, think about downgrading your service – get rid of movie and premium channels you don’t watch, and you could save hundreds a year.

5. Lose Your Land Line. If you’re like most people today, you have a cell phone and a home phone – and two bills to go with them. Many cell phone providers offer great deals on things like free or cheap long distance and free calls to people in your network. Consider cutting off your land line, and you’ll probably save about $50 to $100 a month. Put the money into a savings account, and watch it grow.

With a few minor adjustments, you can keep more cash in your pocket, without feeling the pinch. And remember, a frugal lifestyle doesn’t mean “cheap” – it means spending (and saving) – your money wisely.

Copyright © 2009 Reality Media Inc.

Lose weight. Stop biting your fingernails. Read more books. Learn to knit.

If you’re like most people, you’re planning to ring in 2009 by making a slew of lifestyle changes. The great thing about a new year is that it gives you a fresh start. Maybe you didn’t use that home gym as much as you wanted to in 2008, or maybe you didn’t stick to that low-carb diet. A new year is a great opportunity to get back on track.

This year, as you gear up to say hello to 2009, don’t forget about your finances. Spend a little time getting up-close-and-personal with your checkbook and make a plan to curb your spending and fatten up your savings account.

Don’t know where to start? Read on for seven tips for a financially healthy 2009:

1. Avoid the mall. Seriously. As 2008 draws to a close, your favorite retailers will be running end-of-year clearance sales on everything from major appliances to winter coats. Unless you absolutely must have a new refrigerator, pass on the sales and put your extra money into your savings account instead.

2. Cut the cards. Got credit card debt? There’s no time like the start of a new year to change your spending habits and start putting a dent in your debt. Make a resolution to start paying off your credit cards. And, more importantly, make a resolution to stop using your cards, period. If you don’t have the cash to cover it, don’t buy it, or take the money out of your emergency fund instead. Don’t have an emergency fund? Read on for tip #3.

3. Start an emergency fund. A good way to make sure that you don’t have to rack up loads of credit card debt is to start socking money away for those unplanned emergencies. A good rule of thumb for most people is to have about three months’ salary in a separate account. But, don’t let that figure intimidate you: Decide what you can realistically put away, and go from there. If you start in January, you’ll be surprised how quickly your money will add up.

4. Curb your impulses. From fancy coffee to fashion magazines, DVD rentals to fast food – everybody has a few inexpensive vices. But, these little luxuries can add up to a big drain on your wallet. 2009 is a great time to cut down on impulse purchases. Got a twice-a-day latte habit? Kick it down to twice a week. Addicted to convenience foods? Make a lunch at home and brown bag it. You’ll be surprised at how much you’ll save.

5. Be a savvy shopper. Even the most financially savvy people in the world still have to go grocery shopping. But, there are dozens of ways to shop smarter in 2009 and stretch your dollar when stocking up on the necessities. Clip coupons and watch store circulars for double (or even triple) coupon events. Consider switching to store-brand items whenever possible. In most cases, they’re just as good as the national brand and can save you some serious money. Also, get in the habit of making a list before you go out – it’ll help you stay focused and buy only what you need.

6. Check your credit. From helping you secure a home mortgage to, in some cases, landing a new job, your credit report is used in countless ways. All consumers are eligible for a free annual credit report from the three major credit bureaus: Experian, TransUnion, and Equifax. Start the new year off right – request a copy from each and read them carefully. Not only does this give you the chance to dispute errors, taking the time to check up on your credit can also alert you to fraudulent activities, like accounts you didn’t open or charges you didn’t make.

And finally, my most important tip for 2009:

7. Write a budget. And stick to it. Writing a budget isn’t nearly as scary as it sounds. And, a budget is a great way to make sure that your finances stay on track in 2009. It’s pretty easy: Start with your total monthly household income, then deduct your bills (like your rent or mortgage, utilities, car payments, etc.) and expenses (like gas and food). After that, decide how much you want to put in your savings account and how much will go to your emergency fund. And, don’t forget to leave yourself a little fun money for the occasional restaurant meal or night at the movies. And remember to be flexible: If you find yourself a little strapped for cash after you’ve worked out your budget, don’t ditch it altogether – make adjustments until you hit on a budget you can live with.

Making a few simple adjustments to your spending and saving habits can go a long way. Follow these tips and you’ll be on the way to a financially secure new year.

Good luck and have a happy, healthy 2009!

Copyright © 2008 Reality Media Inc.

If you’re like many folks, the approach of this year’s holiday season has you feeling less than jolly. As the economy continues to flounder and the media predicts dismal retail sales, you may find it harder than ever to channel your inner Santa.

Sure, things aren’t perfect. But, before you pack up your holiday cheer and say “bah humbug” to the month of December, read on for a list of savings tips to make your holiday season merry and bright – without breaking the bank.

1. Set a budget. And check it twice. During the holidays, it’s easier than ever to blow big bucks on early-bird sales, rollback specials, and limited-time offers. There’s nothing wrong with a good deal. But, if you’re not careful, holiday bargain-hunting can be a major drain on your wallet. This year, keep your spending in check by setting a budget before you ever set foot in a shopping mall. To get started, decide how much you can spend on gifts for your friends and family (and, don’t forget coworkers or hostess gifts). After that, decide how much you’ll spend on each person, and track your expenses. Remember: Once your holiday gift budget is gone, it’s gone.

2. Craft with caution. Sure, handmade gifts and cards sound like a frugal alternative to store-bought gadgets. But, before you get carried away, stop and do a reality check: Will a DIY Christmas actually save you money? Crafting supplies aren’t cheap; for some items on your list, it may be more cost-effective to look for a ready-made bargain. Do some comparison shopping before you commit to a crafty Christmas.

3. Pay cash. Don’t use holiday shopping as an excuse to run up your credit card bills. There’s nothing festive about high-interest debt. Before you hit the stores, make sure you’ve got cash. If you really don’t think you can control your spending urges, leave the plastic at home.

4. Trim your shopping list. The holidays are all about giving, but that shouldn’t equate to overextending your finances to make sure you find the perfect gift for your cousin’s husband’s college roommate. Take a serious look at your gift list and see where you can cut spending. If you’ve got a large family, consider starting a new tradition: Instead of buying for everyone, draw names and do a gift exchange instead. Or, agree to make this holiday a “kids-only” event and bypass gifts for the adults entirely.

5. Fly smarter. If you plan on heading home for the holidays this year, it’s a good idea to make your travel arrangements as early as possible to avoid getting hit with last-minute price hikes. Additionally, a little flexibility can go a long way – if you can avoid hopping a plane on heavy holiday travel days (like the Wednesday before Thanksgiving, the day before Christmas Eve, or the day after Christmas), you can score some big holiday travel savings. The cheapest days to travel? Thanksgiving Day and Christmas Day.

6. Shop online. Save some cash (and your sanity) by avoiding the malls this holiday season. Many online retailers offer extra deals this time of year, like free shipping or complimentary gift wrapping. It’s a great way to take some of the stress out of finding that perfect gift.

7. Lay it away. Been a while since you’ve heard that? To offset this year’s predicted holiday shopping slump, many big retailers have resurrected their layaway programs. Because layaway allows you to set aside your holiday purchases and pay for them over time, it takes some of the sting out of larger items. Plus, the flexible payments are a great alternative to credit cards. Just remember to read the store’s policy carefully to make sure your treasures don’t end up back on the shelf.

8. Get a part-time job. With the holiday season just around the corner, many retailers are looking for part-time employees to help ease the shopping rush. If you’ve got extra time in your schedule, consider picking up a few hours a week at your favorite store; use the money you earn to help pay for gifts. The best part? Most stores offer employee discounts – another great way to cut costs.

9. Go generic. Thanksgiving dinner. Christmas dinner. The office party. The New Year’s Eve bash. During the holiday season, gifts aren’t the only things that can drain your bank account. Big family dinners can get pretty pricy, especially if you’re the one hosting the event. Cut your grocery bill by opting for generic ingredients instead of more expensive brand-name items. Or, make this year’s dinner a potluck and encourage guests to bring their favorite holiday fare.

Cutting a few costs and keeping an eye on your budget can help you get back into the holiday spirit. And remember: No matter what your financial situation this year, the holiday season is a time for enjoying time with your friends and family, not about dollars and cents.

Copyright © 2008 Reality Media Inc.

In today’s shaky economy, it’s more important than ever to know what’s going on with your money. But, while you’re fretting about the state of your IRA or the security of your bank, it’s critical to make sure that you’re protected against one of the country’s fastest-growing crimes: identity theft.

You’ve probably heard horror stories about ID theft – you may even know someone who has suffered the stress of being a victim. It’s scary stuff: All it takes is an account number and a little bit of personal information, and an ID thief can open credit cards, make charges, or even apply for high-dollar loans . . . in your name.

The good news is that there are several ways to guard against ID theft. By making a few changes and doing a little bit of legwork, you can ensure that your identity remains yours:

• Be careful what you throw away. Countless cases of ID theft happen simply because the victim unwittingly threw away a bank statement, credit card receipt, or pre-approved credit application. Maybe you don’t see your stinky garbage can as a gateway of opportunity, but, to your average identity thief, trash day offers the chance to do a little “dumpster diving” for your personal information. Make sure that your garbage is just that, and don’t throw away something that could fall into the wrong hands. And, to make things even more difficult for would-be crooks. . .

• Invest in a shredder. Ranging in price from about $30 to $75, a good document shredder is one of the best purchases you’ll ever make. Get into the habit of shredding anything that contains your personal information, even junk mail.

• Get a copy of your credit report. You’re entitled to review copies of your credit report once a year for free, so don’t miss out on the opportunity to stay on top of your credit. After all, you can’t protect your credit until you know what’s on it . . . and who put it there. Review your credit reports thoroughly, and take note of anything that seems fishy, like a card you don’t remember opening or a charge that you know you didn’t make. Don’t be afraid to dispute suspicious or inaccurate listings, either. To find out how to review a free copy of your credit report, visit the three credit reporting agencies at: www.annualcreditreport.com you get a free copy every year from each of the 3 credit reporting agencies.

• Leave extra ID at home. Sure, you need your driver’s license, but do you need your passport, Social Security Card, or birth certificate? Make sure that you don’t carry more ID than you actually need. Do a quick inventory of your wallet or your purse and make sure you don’t have any unnecessary identification. For a little extra protection, leave your important documents in a fireproof safe in your home so you’ll always know where they are. Having your purse stolen is never fun, but it’s even scarier if it contains all of your personal information.

• Memorize your PIN numbers. Never, never write down your PIN numbers. Keep them in the safest place possible: your head. If you absolutely must keep your PINs written down, don’t carry them with you. Keep them at home in a secure place or shred them once you know them by heart.

• Say “Cheese.” Get ready for your close-up and opt for a debit card and/or credit card with your picture on it. It’ll make it that much harder for an ID thief to get away with using your name. For a little extra security, instead of signing the backs of your cards, write “CHECK ID” instead: Most retailers will honor that request and ask to see a driver’s license before using the card.

• Place a “credit freeze” on your credit report. Really want to give identity thieves the cold shoulder? Freeze your credit. Contact the three major credit reporting agencies, and request a credit freeze (sometimes called a “security freeze”). When you’ve got a freeze on your credit, it means that creditors and lenders cannot view your credit report without your permission. If someone applies for credit in your name, you’ll be notified. Keep in mind that a credit freeze costs around $10 per reporting agency (and about the same amount to remove the freeze), but the extra peace of mind is well worth the price.

• Don’t get reeled into a monthly fee. Many companies offer fee-based, monthly credit monitoring services that promise you protection against ID theft for a “low” monthly fee. Don’t buy it. At best, you’re spending unnecessary money; at worst, you’re just, plain getting ripped off. You can protect your credit yourself long term using a credit freeze for $10 and a letter to the credit reporting agencies.

• Take your bills to the post office. Avoid putting checks in your home mailbox if possible, especially if you don’t have a locking mailbox. If you’re mailing bills, it’s best to drive to the post office and drop them in the box where they’re safe from the prying eyes of ID thieves. Or, pay your bills online through your bank’s secure website, and you don’t have to worry about your check getting lost in the shuffle.

A few precautions like these can make all the difference when it comes to protecting yourself from identity theft. In any economy, a little protection can save you from a lot of undue stress.

I think The Beatles said it best: “I read the news today, oh boy . . .”

“Oh boy” is right: Every talking head on TV is preaching economic gloom and doom and every day brings word of a new big company teetering on the brink of financial crisis. It’s scary stuff, to be sure – but, it’s important to remember that, despite opinions to the contrary, the sky is not falling. And, it’s even more important to keep a level head when it comes to your finances.

Take a deep breath, sit back, and read on for ten things you can do today to keep your money (and your peace of mind) intact:

1. Check up on your bank’s stability. What’s a four-letter word for financial security? FDIC. If your bank is protected by the FDIC, you can rest assured knowing that your money is safe, even in worst-case scenarios. If it’s not? Move it. Now. And remember: The FDIC insures up to $100,000 per person, which is sufficient for many Americans. But, if you’ve got a little more than that, see the next tip . . .

2. Spread your money around. If you’ve got more than $100,000, it’s a good idea to put your money into more than one bank to make sure you’re fully protected by the FDIC. That way, all of your funds are safe and sound – and drawing interest.

3. Pinch your pennies. Now is as good a time as any to start exercising a little more financial responsibility. Take a long, hard look at your spending habits and find a few places to cut costs: Dine at home instead of going to restaurants, drop that unused gym membership, or cut back on your entertainment budget. Save wherever you can, and use the extra money to pad your savings account.

4. Don’t pull your money out of the bank. Remember tip #1? As long as your bank is protected by the FDIC, your money is safe where it is. Keep calm and resist the urge to stuff your life savings into your mattress (which is NOT, by the way, insured by the FDIC).

5. Tune out and turn off. If you’re feeling stressed about the shape of today’s economy, do yourself a favor: Stop watching the news for a while. Go for a walk outside, read a book, or do something fun with your kids – watching hyped-up 24-hour coverage of the financial crisis of the day can be hazardous to your mental health.

6. Diversify. If you’ve got an investment portfolio, your first impulse at a time like this may be to sell, sell, sell while you still can. But, this knee-jerk reaction can be an unnecessary – and costly – mistake. A well-diversified portfolio is one of the best protections you can have against an unstable market; it’s best to stay the course and wait for the market to come back on its own. If you’ve already got a diversified portfolio, good for you, you’re one step ahead of the game. If you don’t talk to your financial advisor about how you can safeguard your investments.

7. Pay down your debt. In times of economic uncertainty, many credit card companies respond by jacking up your interest rates and whittling down your credit limit (especially if you’ve got a sketchy credit history), leaving you in a financial bind. If you have debt, make every effort to pay it off as soon as possible to avoid taking a serious hit in the wallet.

8. Consider getting a second job. One of the scariest things about a shaky economy is the prospect of being “downsized” right out of a job. If you feel a little uneasy about your job security, getting a part-time job may help out if times get really tough. Use your talents to widen your safety net: Are you a creative type? Offer freelance services, like illustration or writing. A sales whiz? Get a part-time position in retail. That extra money may be a lifesaver in a worst-case scenario.

9. Beef up your emergency fund. Or, start one. In any economy, it’s a good idea to have a few months’ salary stocked away for an emergency. In an uncertain economy, it’s essential. Cut expenses, use the money from that second job, or just take a bigger chunk out of your paycheck – it may sting a little, but it will be worth it if you need it.

And, finally:

10. Stay calm. This is crucial. Yes, things are scary right now; a bit of worry is to be expected. But, worrying too much can lead to clouded judgment and poor decision-making. Don’t do anything rash, stay on top of your financial situation, and calm down. You’ll be glad you did.

A clear head and a firm grasp on your own financial situation is the best protection in an uncertain economy. Keep your cool, and keep your money in the bank. And remember: Despite all of the bleak reports about the economy, many analysts say that it can only get better from here. Now that’s good news.

Copyright © 2008 Reality Media Inc.

Back to school time: pencils, books, and an argument with your teen about a pair of $150 sneakers. How do you get him ready for the school year without breaking the bank? With every store advertising super deals on must-have items and kids begging for pricy designer duds and electronic gadgets, it’s easy to get caught up in a spending free-for-all. This year, play it smart with a few lessons in savings-savvy back to school shopping.

Lesson One: Buy Used Textbooks

College is a time of excitement and new possibilities. A time to learn and expand your horizons. And, it’s a time when unsuspecting freshmen (and their parents) are whacked with textbook prices that can reach into the hundreds. If you’ve got college students on your shopping list, encourage them to check out websites like amazon.com or half.com – often, you can find the same literature anthology for a fraction of what the college bookstore charges. It’s a good lesson in savings for both of you.

Lesson Two: Be Tech-Savvy

This time of year, your local newspaper is overflowing with brochures from every big-box electronics retailer in a 50-mile radius, each offering competitive prices and steep back-to-school discounts on all things electronic. If you can afford it, there’s nothing inherently wrong with buying your child a laptop to help with her homework, but, remember to keep it simple. Don’t opt for major upgrades – they’re mostly unnecessary and can drive the prices back up again.

And, it’s important to set boundaries: Is a new MP3 player really a back-to-school essential? Play it smart and don’t let the sales (or your child’s claim that she’ll absolutely die without one) get the better of your bank account.

Lesson Three: Shop Close to Home

Very close. Before you head out the door and hit the stores, take stock of what your kids actually need. Go through your kids’ closets and see what fits and what can take another year of wear. And, make sure to scour the house for school supplies: If you’ve got boxes of pens or glue sticks in your home office, there’s no sense in rushing out and spending money to buy more.

Lesson Four: Hold Off on Seasonal Purchases

Sure, that Hannah Montana backpack will make her the coolest kid in the 6th grade, but, it will be even cooler when the price drops in October. After the back-to-school rush ends, most stores banish backpacks, lunch totes, and other essentials to the clearance aisle, where you can pick them up for a steal.

Lesson Five: Get out of the Mall

If you’re looking for budget-conscious fall fashion finds, you may want to avoid your neighborhood shopping mall. Instead, try discount stores, outlet centers, and even garage sales or thrift stores. Sometimes, you can find the same name-brand items that your child just “has” to have at a price you can live with. And, to really maximize your child’s wardrobe, check out the next lesson:

Lesson Six: Keep it Simple

You were young once, too – and you have the embarrassing family photos to prove it. There’s you at Thanksgiving ’88 in your stirrup pants and funky hairdo; that family reunion in ’92 when you were going through your flannel-soaked “grunge” phase. Trends come and go, and they’re not always cheap. Protect yourself from high prices (and your kids from cringe-worthy Kodak moments) by purchasing simple, affordable clothing that won’t be out of style by the time you cut the tags off. If your kids really want to experiment with trends, set a spending limit for indulging fads, or let them use their own allowances to do it.

Lesson Seven: Clip Coupons

Now is the time to start collecting coupons for things you’ll need throughout the school year. Lunches and snack foods, markers and glue for school projects, and the ubiquitous, teacher-requested box of Kleenex – before you buy, peruse your newspaper or coupon mailers and start stockpiling coupons for the things you’ll have to buy later.

Lesson Eight: Teach Responsible Spending

Some lessons can’t be taught at school. Use your back-to-school shopping as an opportunity to teach your kids a much-needed lesson in smart spending habits. After all, if your son sees you whip out your credit card every time he wants something, he may do the same thing one day. Involve young adults in budgeting for school clothes and supplies; if they have allowances or part-time jobs, ask them to pitch in for high-dollar must-haves.

Copyright © 2008 Reality Media Inc.

Smoking . . . biting your fingernails . . . talking on your cell phone in traffic . . . misusing balance transfers?

When you think of bad habits, your money may not be the first thing that comes to mind. But, your spending and saving patterns can be just as unhealthy and hard to alter as your addiction to Ben and Jerry’s or your compulsion to text your best friend during rush hour. And, just like quitting smoking or going on a serious diet, taking control of your finances requires dedication and hard work.

If you find yourself setting a budget one week only to blow it all on a weekend shopping spree the next, it may be time to take stock of your financial habits and find out which ones need to be kicked for good:

Bad Habit #1: Abusing Balance Transfers

In theory, transferring your high-interest credit card debt to a new account with a low-to-nonexistent introductory rate is a great way to reduce the amount you owe and pay off your balance more quickly. But, in reality, a balance transfer can sometimes lead to more debt. If you use a balance transfer, make sure that you keep your original goal in mind: Getting rid of debt. Don’t let the low interest rate on your new card tempt you into a spending spree, and make sure you read the fine print on the terms of the new agreement.

Think about it: A credit card got you into this mess. Do you really trust another one to bail you out? A better – and safer – way to reduce your debt is to get a part-time job and use the paychecks to whittle away what you owe. Or, tighten your budget a little until you get your balance under control. And, once you pay off your credit card, stop using it. End of story.

Bad Habit #2: Not Setting a Budget

This is one of the worst – and most common – bad money habits. If you’re not setting a budget, you probably have no idea where your money is going. Taking the time to set a budget is one of the smartest ways to get a handle on exactly how you’re spending your money and where you can afford to tighten your belt a little.

It’s simple, really. Start with the total you make per month, subtract your living expenses like mortgage or rent, food, and utilities. And, don’t forget to budget for gas or transportation. After that, decide on an amount to put into savings and leave yourself a small allowance for entertainment and other “fun” expenses. But remember: To be successful, you have to stick to your budget once you set it. No excuses.

Bad Habit #3: Ignoring Your Credit Report

The information on your credit report is used in countless ways – from getting a good rate on a home mortgage to securing a new job. And, with identity theft becoming more and more common, it’s critical to scan your report for any errors.

According to federal law, you are eligible for a free credit report each year from the three major credit bureaus: Experian, TransUnion, and Equifax. It’s a good idea to request a copy from each and review it thoroughly. Not only does this give you the chance to dispute errors, taking the time to check up on your credit can also alert you to fraudulent activities, like an identity thief opening a credit card in your name.

Bad Habit #4: Not Starting an Emergency Fund

When it comes to setting up an emergency fund, it’s easy to procrastinate. After all, the prospect of setting aside three to six months of income can be pretty intimidating, especially if you’re starting from the ground up. But, we all have to start somewhere. Figure out how much you can save per month, and set that amount aside in an account that’s for emergencies only. And remember: Your emergency fund is separate from your savings account, so set aside enough in your budget to stock your savings and save for emergencies.

Your emergency fund should be enough to allow you to pay your basic living expenses – like housing, utilities, and groceries – for several months in a worst-case scenario. If you’re laid off or are unable to work because of an illness or injury, your emergency fund can help you make ends meet until you get back on your feet again. And, it’s important to remember that your emergency fund is for true emergencies: Don’t be tempted to blow the money you’ve saved. A new TV is not an emergency.

Bad Habit #5: Paying the Minimum

The key to financial independence is living debt-free – and you can’t do that if you’re simply paying the minimum balance on any existing credit cards. Minimum payments may seem like a more affordable way to pay large debts, but this strategy only benefits one person: Your credit card company. Carrying a large month-to-month balance means that you’ll be shelling out more in interest over the long haul.

Kick this habit by paying off your entire credit card balance every month. If you’ve racked up a pretty large amount in debt, sit down with your budget and figure out just how much you can afford to pay every month, and stick to that amount until your debt is paid off. You may have to skimp on things like going out to dinner, but you’ll feel great when you’re finally debt free.

Breaking these bad financial habits will take some hard work on your part – anyone who’s ever started a diet understands this. But, once you learn to change the way you think about your money, you’ll be on the road to financial independence and debt-free living.

Copyright © 2008 Reality Media Inc.