Unless you live under a rock that you are no longer making payments on, you’ve heard about government efforts to revitalize the American economy. As Sarah Palin said so eloquently, “we need to shore up the economy”. As reported by Forbes, the US Senate has approved a tentative $780 Billion stimulus package that must find common ground with the larger US House package. Both proposals use a combination of government funding and tax cuts to promote a new flow of money in the American economy. 

To break it down into simple terms: A similar plan implemented in your personal finances would attempt to solve your money problems by reducing your income and increasing your debt. You could do this by working less and making up for that lack of income by paying for more of your daily needs with a credit card.

That plan wouldn’t make any sense to you unless you happened to be self-employed without insurance and needed to take time off in order to heal up from a work-related injury. In that situation, it makes sense to reduce your income and increase your debt so that you can guarantee that you’ll be able to eventually return to work. 

It’s easy to hear the numbers being thrown around about the current stimulus package and make sweeping judgements about what will or will not work. It’s much harder to find multiple perspectives on a particular situation before forming an opinion. Taking the time to research current events, finance solutions, and ways to save money will not only enable you to make better decisions for yourself, but to influence others to make smart money choices. photo credit: Phil Romans

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Your health care can be a source of huge bills, but it’s really not something you want to neglect. But what many people don’t realise is that most hospitals are happy to negotiate on costs. Here are some tips to help you save money on your health care without compromising the care that you receive: (more…)

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Scouring the internet is a great way to acquire knowledge, but there are few things better than a comprehensive book, written by an expert. That’s why, if you’re trying to build your personal finance library, it’s best to start with the basics. The following books pour are like a personable, accessible course in Personal Finance 101, giving you a solid base on which to grow your knowledge. (more…)

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Make a late payment on your mortgage and your credit card interest rate goes up–even though you’ve been making timely payments on the card. (more…)

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These days it’s getting to be that every cent you can save on gas is a blessing. But one way to help your wallet feel a little better in the midst of skyrocketing gas prices is to adopt a few more fuel-efficient driving habits, like these: (more…)

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You’ve probably heard someone from an older generation say “We didn’t need to spend all that money in my day”. The annoying thing is that they’re probably right, and we’ve dug our own financial hole by turning new luxuries into “necessities” in modern life. A Yahoo finance story recently listed a dozen items that have become essential to the lives of many Americans, but definitely fit the bill of things that weren’t needed at all a few decades ago. (more…)

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If you’re trying to save money, stop for a second and add up how much you have spent on dining out in the last month. Most people are shocked when they start adding up restaurant and take-away bills, but eating out is an easy habit to get into - it’s quick, easy and delicious. But it’s also expensive, so if you’re on a budget and want to save some extra cash, you really need to get into the habit of cooking your own meals at least most of the time. (more…)

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If you’ve got some heavy credit card debts, your key priority has to be to pay down some of your debt so that you can start getting financially on top of things again, and you can start planning for the future. A recent article at About.com had some great suggestions for ways you can find some money to start reducing your credit card bills: (more…)

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If you’re graduating from college soon, or are trying to decide what to study there, then the recent figures on current starting salaries for new graduates in a variety of fields might be very interesting for you. (more…)

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When you’re trying to decide just how to invest your hard-earned and saved money, the options are pretty boggling. If you decide on mutual funds, Joshua Kennon from About’s Investing for Beginners has a few tips that will certainly point you more in the right direction to choose the right mutual fund. Some of his advice includes: (more…)