Pennysaverblog.com

Before you can improve your financial circumstances, it’s important to understand whether you are a saver or a spender.  Some people don’t even realize that they are actually fairly decent savers, while others don’t think they overspend when they actually do.  Take this short quiz to discover whether you fall into the category of saver or spender.

If you are a spender, then you more than likely find great satisfaction in buying tangible things like cars, video game systems, and practically anything else that could be considered a gadget or gizmo.  You would far prefer to spend your money than to save it.  You like to buy products when they first come out on the market even if they are overpriced.
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Pam General

Well, it’s been one year since I published my first post on Pennysaverblog.com.  I can’t believe how fast the time has flown by.  I am thoroughly enjoying writing articles and reading other great personal finance blogs on the Web.  I am also enjoying reading finance books of all varieties as well as doing further research and studies into the art of finance.  I am beginning to see that personal finance truly is an art as well as a science.

To those of you who have written comments or emailed me with your thoughts and ideas, thanks for your contribution to my blog.  I really appreciate you taking the time to encourage me and you are the people who motivate me to keep going.

I look forward to another great year and I hope that you find something on Pennysaverblog.com that inspires you to attain your financial goals and ultimately financial freedom.

Thanks again for your support and I wish for you to have a year full of great memories and successful achievements.

All the very best!

Pam

Pam General

I watched part of Holmes Inspection on TV the other day and it was about this young woman’s experience in buying her first home. She bought a 20 year-old townhouse and had a home inspector give her the go-ahead to make the purchase.  Within a week of taking possession of her new home, she noticed that something in her bathroom was causing water to leak through her kitchen ceiling.  She hired a plumber to resolve the issue, but all the plumber did was make a large hole in her kitchen ceiling and then he told her he couldn’t find the leak so he wouldn’t be able to do anything.  Nice!

So, when Holmes and his crew came to take a look at the situation, they were able to discover where the leak began.  Unfortunately, the more work they did on the house, the more problems they discovered.   The home had been recently renovated, so even a home inspector could not have possibly caught every problem since some of the issues were covered up.  Nevertheless, the home inspector wasn’t thorough enough and should have seen some red flags that would have indicated possible issues with the home.

When purchasing a home, in order to save money and frustration in the long run, it’s good to make sure you find a credible home inspector.  Also, be wary when purchasing an older home with recent renovations as the new laminate flooring or a fresh coat of paint could be covering up some nasty household problems.

Make sure to ask lots of questions about the house and find out as much as you can from the previous owners.  Also, don’t be afraid to ask questions of the home inspector.  Make sure they check the electrical and plumbing.  The key is not to become emotionally attached to the house because if you do, you may end up buying a home against your better judgment.

Buying your first home can be really exciting.  Do your due diligence and get a home inspection before committing to a home purchase.  Make sure your home inspector is reputable and highly experienced.   Buying a home is a huge investment; Make sure it’s a wise investment that you won’t regret.

Pam General

After writing about my experience of losing my credit card, I thought it wouldn’t hurt for me to delve a little deeper into the ways that we can proactively prevent, or at least protect ourselves from identity theft.  Here are some tips below:

1. If you use the Internet, be sure to use antivirus software on your computer and keep it up to date.  You should also enable the firewall on your PC.

2.  Be careful what you send via email.  Limit the amount of sensitive information you send in your emails.  Be very cautious about including account numbers, credit card information, numbers such as Social Security Numbers or Social Insurance Numbers, etc.  Keep in mind that someone else could be reading those emails.

3.  Be creative in choosing passwords.  Don’t use obvious personal info like your address or birthday.  Instead, try to incorporate a variety of numbers and letters that would be difficult for anyone to guess.

4.  Make sure a website is legitimate before entering any credit card information to make purchases.  If you do a quick Google search on the company you will be able to find out right away if they are a scam.  Also, check out the site’s Privacy Policy to ensure that they won’t be selling your information to spammers.

5.  Limit information that you provide to people over the phone as well.  You have no way of telling if they really are who they say they are.  Never give out your credit card information or sensitive identification numbers such as a SIN or SSN over the phone.

6.  Be sure to destroy all sensitive papers before throwing them in the trash.  Using a shredder is an efficient way to ensure all the information is illegible.  Be sure to file away the information you need to keep in a safe place.

7.  Be careful to not let your credit card out of your sight.  When at restaurants, it’s better to pay at the till then to let someone take the credit card from the table.  Although for the most part employees are honest there are a few who take advantage of unsuspecting customers.

8.  Check your online banking or bank statements regularly to look out for suspicious charges.  If you see any unusual transactions, be sure to contact your financial institution.

9.  Always be aware of your surroundings.  If you are making a PIN purchase, do your best to shield your PIN entry from curious eyes from behind or beside you.

10.  Don’t put too much personal information on your checks.  The less you reveal about yourself, the better.

Pam General

It can be really tempting to want to have as much or more than our neighbors, colleagues, friends, family members, etc.  It’s like we want to prove a point – that we are successful and important.   What most of us don’t realize is that we will be a lot more content and enjoy our lives a lot more if we are satisfied with what we already have.  “Keeping up with the Joneses” is an unhealthy lifestyle choice that can cause serious debt problems among other things.

Instead of focusing on what others have and trying to attain those things, why not be thankful for what you’ve got?  You will be more likely to save for things that are important to you rather than wasting your money to keep up appearances.  Half the time we don’t really want the things we buy anyway – we just don’t realize it until it’s too late to return them.

It’s not that we shouldn’t buy anything – there’s certainly nothing wrong with having things.  The main thing is the motivation for buying things should be because they will be good for you, not just because someone else has them.

My goal is to be willing to make small sacrifices now so that I can achieve future goals.  For instance, my husband and I try to take a 2 week vacation every year. We forfeit eating frequent restaurant meals and other expensive forms of entertainment so we can save enough to take an enjoyable vacation.  Rather than worrying that our neighbor recently landscaped their yard and feeling like we have to keep up with them or rather than being concerned that we are not going out all that often compared to other people our age, we are content because we know that we will soon be able to take a vacation and that we won’t have to borrow money to do it.

Not caring about what the Joneses have is very freeing, and it’s a lot easier on the pocket book.  In the long run a lot of people who live expensively are often in debt up to their eyebrows, and I would much prefer to live more simply and work my way towards becoming debt free and ultimately financially free.  I know this goal will take a lot of discipline but I am up for the challenge because I know it’s worth it.

Pam General

1. Pay down high interest debt such as your outstanding credit card debt. As unappealing as this may sound, you will be much farther ahead financially the sooner you can get rid of your credit card debt or other high interest debt.

2. Put it toward your retirement savings, or if you haven’t started saving for retirement, start now with your refund money.

3. Build up your emergency fund. It is wise to have at minimum 3 months worth of monthly living costs saved up for a rainy day. Ideally, you should save 6 months worth.

4. Buy insurance that you would otherwise not be able to afford to protect your family in the event of illness or emergency. By using your tax refund, you don’t have to factor the expensive premiums into your monthly budget, making it much easier to keep your family protected without financial stress.

5. Service your vehicle. You may have neglected your car recently because you were strapped for cash. Now that you have the funds, take care of your car.

6. Do some home renovations that will increase the value of your home.

7. Put some extra money towards your mortgage. It’s always a great feeling when you can pay down your debt and think about how much interest you won’t have to pay!

8. If you have been really disciplined all year and already have an emergency fund and retirement savings plan in place, spend some of your tax refund on yourself! Enjoy a day at the spa or a meal at your favorite restaurant. Do something that you normally wouldn’t do and create a nice memory. Think of it as a reward for all of your hard work throughout the year.

Pam General