Money Tip #1

The media has been highlighting the stories of families that are without jobs in these hard times. When the interviewer asked what they wished they had done differently in the past, the universal answer was "save more." Sometimes it takes a down time to make us realize that we should have been saving in the boom time.

One way to help us spend less than we make is to "Kick A Habit." Do you have missing money – a routine you do mindlessly daily, weekly or monthly? Let's take eating out for lunch each day. That would be about $10 a day, $50 a week, $200 a month, $2400 a year. Just being aware of the annual amount helps, but here is a way to really make this awareness work for you.

Ask yourself, "What would I rather spend that $2400 on?" Perhaps a rainy day fund or the down payment on a needed replacement car. Visualize that goal – post a picture of it on the fridge. Then decide:

1. Can I go "cold turkey" – stop the habit and save the whole amount? Still have to eat lunch!

2. Can I substitute? Pack a lunch of "planned-overs" and save most of it.

3. Can I reduce the frequency and save a portion? I still like to eat out with my friends, so I will eat out once a week and bring my lunch the rest of the time.

Then figure out how much you intend to save each paycheck and have that amount automatically sent to your savings account.

To make a financial behavior change, we need a goal and a plan to be successful. We are also more likely to persist if we tell someone. So, go to www.AmericaSaves.org and sign up to be a Saver.

Money Tip #2
Do you get a tax refund each year? You might be excited to know that you're getting a refund, but there are a few things to consider. 

If you are getting money back from Uncle Sam, use it wisely.  Use form 8888 and split your refund. Put some in checking to spend on bills, having family fun, or special purposes. Put the rest into savings! We all need an "emergency" cushion for auto repairs, medical bills, or unexpected events.

But, don't get too excited about that refund. Getting money back means you're essentially lending money, interest free, to the government for the year. Better to have those dollars in YOUR account! So, if you've been getting big refunds or have had changes in your life (marriage, divorce, baby, increase or decrease in income), adjust the withholding allowances on your W-4 form. You can do that for your 2009 taxes now at www.irs.gov. Use the withholding calculator to determine the correct figure for you. Then print a new W-4, fill it out and turn in to your Human Resources/Payroll department.

While you are there, fill out the paperwork with your payroll department to split your future paychecks between your checking and savings account. Or, set up an automatic transfer from your checking account to your savings account at your bank or credit union. Pay Yourself First – automatically.

Then, log on to www.AmericaSaves.org and sign up as a JaxSaver, committing to the amount you are automatically saving each pay period.

Credit Card Update

Many consumers have found an unexpected/unwanted surprise when opening their credit card statements. One of the most perplexing changes has been a general raising of interest rates (while other major rates have been dropping). The rationale?  "A difficult market environment." Another common change (not as surprising) has been a reduction in credit limits. If you carry a balance, this lower credit limit will negatively impact your credit score. How? The result will be a higher debt ratio (the proportion of your balance in relation to your credit limit). For many, these "surprises" have come even though no late payments have been made. According to Consumer Action, nearly half of banks now penalize cardholders for changes in their credit history with default rates up to 35%.

Although credit card companies can currently raise your rate for any reason, results of a recent Consumer Action survey outline the more common 'triggers' of interest rate increases (the survey analyzed 146 cards from 47 different issuers):

- Credit score gets worse (90.48%)
- Paying mortgage, car loan or other creditor late (85.71%)
- Going over credit limit (57.14%)
- Bouncing a payment check (52.38%)
- Too much debt (42.86%)
- Too much available credit (33.33%)
- Getting a new credit card (33.33%)
- Inquiring about a car loan or mortgage (23.81%)

So, when you get those credit card statements, read them carefully.  Check to see if your interest rate or credit limits have been changed.

If you are looking for a way to pay down non-mortgage debt in the smartest way, go to https://powerpay.org  It's a free service of Utah State University Extension. You enter your balance, monthly payment, and APR to receive a calendar of payments that will usually reduce the interest you will pay and the time it will take to become debt free. You can contact Anita at Duval County Extension, 387-8850, for more information and advice on using the program.

Money Tip #4
Small Change, Big Opportunity

Thinking of pocket change as an investment opportunity may seem like a bit of a stretch……Yet, the United States Treasury reports that Americans hold about $15 billion in loose change. It is estimated that the average household accumulates $50 of change every month. Invested over 20 years (at 5% interest) would yield over $20,000. 

Saving change at the end of each day or week can add to personal savings or be used to fund extras.

Use your change for an evening out each month or to pay extra on a bill. Saving that change can also help you reach longer term goals like a weekend getaway or upgrade for the family's computer, television or recreation equipment. 

So, consider saving your change!  It's a great start to a savings plan.  Become a JaxSaver today! Make a commitment today at www.AmericaSaves.org

Money Tip #5
How can I save money in today's economy?  Many people are struggling right now with their finances, so why would we encourage you to save? 

JaxSaves focuses on providing people with options for saving or spending their money.  The goal is for people to take financial action - to reduce debt, start saving, or just spend less than you earn!  This economy has shown us that people with emergency funds and other savings or low debt levels are better able to survive in tough times.  

Individuals need to make financial decisions to save or spend money based on their own individual circumstances.  Unfortunately, many people today have high debt balances and/or lack the recommended emergency fund of at least three months of their major expenses in savings. Others are employed in industries where their job stability is shaky or where layoffs have already occurred.  For these people, JaxSaves /America Saves can provide information and motivation to begin a regular savings program.  In this situation, it is wise to increase your emergency reserves and pay off debt as quickly as possible. Go to www.AmericaSaves.org for ideas. 

On the other hand, for those who have adequate savings for emergencies, job stability, and low or no debt, a recession can be an excellent time to purchase wisely because prices are often very attractive for many items such as clothing, travel, and cars. Again, people need to do what's best for them.  No one consumer alone is going to change the economy by the way that he or she decides to spend or save money. But we can all get our financial house in order - and that's good for the whole country!
You can take the first step by setting this goal - I will become a Jax Saver today! Make a commitment today at www.AmericaSaves.org