If you’re struggling with debt, or considering filing for bankruptcy, you’ve probably become aware of the ways you spend and save money. As it turns out, one of the best ways to make sure you stay afloat financially may be to pretend like you’re living in the past.

This post from GetRichSlowly.org tells the story that’s fairly common: a woman got a new job and a raise, thought she’d finally end her debt and… didn’t.

The reason? She succumbed to “lifestyle inflation.” Luckily, she fought back and offers some tips for other people looking to hang on to their hard-earned cash.

Ignore Your Raises

While it may be tempting to automatically adapt to the new, more luxurious lifestyle a raise allows you, bumping up your living standards right away can be a bad move financially. This doesn’t mean you should eat Ramen noodles your whole life, but consider living one pay raise behind:

• Use extra income to pay down debt
• Sock new money into a savings account (or a retirement plan)
• Put the money toward a specific future purchase (like a new car)

However you save your money, this strategy will keep you from spending your money as soon as you make it.

Focus on the Right Goals

In the post mentioned above, the writer notes that she accepted a higher-paying job but found herself missing her old one, which allowed her more creativity. Make sure you don’t get trapped into a higher-paying gig or a more expensive lifestyle simply because you can.

• Write down what you want. Having a concrete goal in mind for saving money (like paying off your credit cards, buying a house, etc.) will make the process easier and let you know whether you’re staying on track.
• Use money as a tool. Money alone isn’t much good to you—it’s what you can do with money that matters. So try to treat it like you would a hammer: only take it out when you really need it.
• Take time to reevaluate. If you feel out of control or too restricted financially, sit down and reevaluate your goals. Being willing to change the way you do things is key for adapting your finances.

Additional Resources

Savings Fitness: A Guide to Your Money and Your Financial Future (PDF)

Back in the early days of the foreclosure crisis, consumer advocates were warning about foreclosure rescue scams, which caused thousands of distressed homeowners to part with their money and, often, their last chance of staying in their homes.

Now, according to WalletPop.com, unscrupulous individuals are scamming struggling homeowners out of their money in a slightly different way.

Loan Modification Scams

Apparently, “forensic audits” are at the heart of this scam. Here’s how they work:

• You pay a mortgage loan auditor. Scammers of all sorts are notorious for upfront fees, and the loan modification scammers are apparently no different. If someone asks for fees before performing a service, be very wary.
• The auditor examines your loan for fraud. Theoretically, a loan auditor’s job is to review your mortgage documents and discover any illegal activity on the part of the lender.
• The auditor goes to your lender. Once evidence of fraud comes to light, an honest auditor can take it to the lender and use it as a bargaining chip to get you better terms on your loan.

But, naturally, the dishonest auditors out there won’t follow through. They may fail to thoroughly examine your loan papers, fail to actually visit and negotiate with your lender or simply walk away with your money.

Protect Yourself, Your Money and Your Home

If you are in danger of losing your home to foreclosure, you’ve probably considered applying for the government’s Home Affordable Modification Program (HAMP). To see if you qualify, start by taking this survey at the government’s HAMP website.

Once you know whether you can reasonably expect a modification from your bank, consider researching loan auditors in your area (honest ones may in fact be able to help you find fraud in your loan – and they won’t charge you fees until they’ve actually helped you).

To verify a company’s credibility, check out their standing with your state’s Better Business Bureau (BBB)

Other Options

If a loan modification isn’t in the cards based on your loan, you may be able to stave off foreclosure by filing for Chapter 13 bankruptcy. A bankruptcy lawyer in your area may be able to help you determine whether this is the best path for you.

Saving money on food by cooking at home is fairly simple in theory: instead of going out, you eat at home. But in practice, night after night of cooking (especially if you’re making the same meals again and again) can lead to a snap decision to mix things up by eating out—and that can throw an unexpected wrench in the budget.

Make Double (or Triple) Portions

When you cook a basic, versatile ingredient (like chicken), make more than you or your family can eat in one night. That way, you have the basic ingredient for several more meals. Many people already do this on Thanksgiving with turkey soup or sandwiches the next day, and it’s fairly easy to apply it to regular life. Encore meals you might consider:

• Soups and stews: These are particularly great because you can toss them on the stove and leave them alone until you’re ready to eat.
• Anything wrapped: Dumplings, sandwiches, fajitas, ravioli—there’s a reason many cultures have wrapped up staples. They’re a great way to revamp leftovers.
• Anything with sauce: Never underestimate the power of spices and sauces to transform a basic food. A simple sauce and new sides can turn leftovers into a whole new meal.
• Anything from the freezer: Okay, this one’s a bit different. Consider freezing an extra portion of a main meal and pulling it out in a week or so, when it doesn’t remind you of yesterday’s meal.

Make a Tradition

Rather than treating leftovers like something you have to eat, make a game out of them. This is particularly useful if you have kids. Reserve one night a week to clean out the fridge and let everyone eat exactly what she wants—as long as it’s a leftover.

This may lead to some pretty creative meals.

Take Turns

If your children are old enough to participate in food planning or preparation, make them part of the process. Even if they’re too young to wield knives, they may be able to help put grapes into a fruit salad, say, or develop a menu.

For example, you might outline the food groups you’d like to include in each meal, then have them pick their favorites. Again, you could end up with some pretty interesting combinations—but at least you won’t be bored!

Sometimes, the reality of personal finances can be tense and stressful. Sometimes, a quirky and helpful way of looking at and understanding personal finance goals can be motivation to see them through, as this post from GetRichSlowly.org shows. Basically, the writer argues, you can do a lot for your overall mental and financial health by recognizing and understanding your financial vices.

What is a Financial Vice?

Financial vices are those things that we spend money on that are very important to us—but may seem silly to other people. One person’s vice might be new books, while another’s might be collectible action figures.

The point is, vices are something you’re willing to splurge on. And, if you’re able to, you should. After all, adjusting our spending habits so that you have money for the things that really make you happy is the whole point of developing a budget.

Identifying Financial Vices

Keep in mind, though, that you can’t just claim every item you want is a vice and should be purchased. True vices should meet these criteria:

• Lasting: Is this something that is important to you every (or almost every) day? For example, a gym membership you use often and feel the benefits of constantly may qualify, but a daily donut may not (no matter how good it smells).
• Consistent with goals: Will this expense allow you to stay on track with your larger financial and life goals? For example, that gym membership may keep you better focused and motivated at work, while the donut purchase might just drain your food budget.
• Contained: Financial vices shouldn’t end up taking over your life or ruin your budget, so be wary of expenses that have an addictive quality (gambling, drugs/alcohol, elaborate video games, etc.).
• Acceptable to all involved parties: If you’re living the single life, this one doesn’t really apply to you, but if you’re in a relationship or family, it’s important. If you cannot convince a partner that your ,q>vice is worthwhile, you may need to reevaluate how much you need and want it in your life.

So take a look at your current spending habits and see if you can identify your true financial vices. Then you can commit yourself to making room in your spending plan for them.

If you’re the parent of a teenager (or any child you want to understand money matters), you probably know that you should teach them about money matters. But knowing you should discuss money and knowing what specific issues to hit are two different things.

Here’s a look at some suggestions (adapted in part from this post at WiseBread.com) of what topics to be sure you address when talking finance with your offspring.

• Debit vs. credit: If your child is interested in getting a credit card for the convenience factor (particularly if she likes shopping online), let her know that a debit card would serve her needs. The difference is that a debit card deducts money from a checking account, while a credit card is essentially a loan you must pay back at a later date – with interest!
• Get a job: In fact, when the Credit CARD Act of 2009 takes effect this month, those under 21 must prove that they have a job (and/or get a parent’s or guardian’s signature) in order to qualify for a card. Plus, having a job will mean your child has a way to pay for purchases he wants to make.
• Remove temptation: Call 1-888-5-OPTOUT, which allows you to eliminate your name from mailing lists for “free” credit card offers. The “out of sight, out of mind” rule may be the best defense against aggressive vendors.
• Limit yourself: Suggest your child to limit herself to two cards total – and, if she chooses to open a credit card account, make sure she understands the importance of paying her balance in full each month.
• Stay informed: Show your child how to check his credit report by visiting www.annualcreditreport.com, and encourage him to check it annually and review it for errors.

Unveil the Beast

Credit cards can be scary, but usually only after they’ve gotten you into serious debt. Help your child avoid getting there by explaining all the fees and costs associated with having a credit card.

• Annual fee: Yearly cost of holding a card
• Finance charge: Also known as the “interest rate,” it’s assessed on any part of your bill you don’t pay in a given month
• Late payment fee: Charged when you fall behind and could be accompanied by an increase to the interest rate
• Over limit fee: Charged every time you make a transaction that sends you over your limit for that card
• Cash advance fee: Really, the interest charged to take out this kind of loan

Additional Resources

Credit CARD Act of 2009 (PDF)

The Internet can be a great tool for saving money on major (and minor) purchases, but actually finding the best bargains can be time consuming and frustrating. Here (adapted in part from this article) are some tips for making the most of your time and money.

Similar Terms

Rather than searching several times using slightly different words (say, to find a coupon or a discount for a major purchase you want to make), try some of these search engine manipulation techniques:

• The ~ symbol: Like its use in mathematics, think of the ~ key as meaning approximately equals. Inserting this symbol before a word allows you to look for it and words with similar meanings. So typing camera ~ discount would give you results for discounts, coupons, promotions, deals, etc.
• The word OR: Typing OR between related terms you’re interested in is another way to search for specific (but slightly broadened) results. Looking for a good price on a camera would look like this: camera (discount OR coupon OR bargain).
• The * symbol: Known as the wildcard, this helps people who aren’t sure exactly what they want to buy. For example, if you wanted a digital camera but weren’t sure what brand or model. By typing something like * camera discount, you could explore discounts for a variety of models.

Find Exactly What You Want

If your search results are bringing up too many inaccurate results, you can search for specific terms, or exclude certain terms from the results.

• Put in in quotes: Use double quotes to search for a specific term of phrase, such as discount digital camera.
• Use the + sign: Likewise, putting a plus sign directly in front of a word will only include results with that word. So, if you’re only searching for discount Nikon cameras, you can search discount camera +Nikon.
• Exclude terms with the - sign: Understandably, the minus sign is the opposite of the plus sign, and it will return results that do not include the specified word. So, if you know you don’t want a Nikon, you can search discount camera -Nikon.

Find Relevant and Recent Results

Few things are more frustrating than spending time tracking down a great offer that has already expired. Luckily, Google provides tools that can help ensure the results you get are up to date. Here’s how to do it:

• Begin your search. Type in a search term. When you get to the results page, you should see a show options button toward the top of the page.
• Set time preferences. Click show options and scroll down until you see date and time parameters. Limit your search so that you know the results you’re getting are fresh.

Search a Specific Site

While many Internet users simply go to their favorite web sites to hunt for money-saving deals, sticking with Google may increase your odds of finding a stellar bargain. Because of the tools mentioned above (and others, found in advanced search options), you can do a much more detailed search using Google than you often can in a specific site.

To make this happen, simply type the command site:sitename.com.

Advanced Product Search

Now, using all of these functions in a single search may take a lot of patience. Luckily, Google has a shopping search that can help you find the products you want at the price you want. Their Advance Product Search lets you set a minimum and maximum price, and include and exclude specific terms.

Happy money (and time) savings!

I’m always excited when I hear about ways to save money on fun activities, and when I can do that while supporting local businesses and/or spending time with my friends, even better. Which is why I was jazzed to hear about the web site Groupon.com.

What It Is

Groupon is a site that allows members to save money through collective bargaining. Here’s how it works:

• You sign up. It’s free and easy. You just need to indicate where you live and provide an email address.
• Each day, there’s a deal. Groupon offers deals on things like restaurants, tickets and other types of entertainment. They advertise themselves as offering 50–90 percent off normal prices.
• You choose whether or not you’re interested. If the deal sounds like something you’d use, you click the buy button. If enough people choose to buy by the deadline (usually midnight), your card is charged and you receive your coupon in the mail.
• You redeem your coupon. Each individual coupon has information about expiration dates and limits right on it, so you’ll see pertinent details when you print.

For people interested in going out, this site could provide excellent ways to save money.

The Drawbacks

Unfortunately, this is not a perfect service. It has limitations, including:

• Availability: at this point, you need to be near a major city to take advantage of the deals.
• Uncertainty: if too few people agree to buy the day’s coupon, the deal is canceled. The good news is that you won’t be charged for a canceled deal.
• Commitment: since you’re paying for a coupon, you must use it in order for the bargain to work. So if you tend to lose track of dates, this may not be a good choice for you.

Why It Works

Groupon works on the principal that exposure to a business is the best way to increase its sales. When new customers are coming through a business’s doors and like their experience, everybody wins.

This is why Groupon also allows users to recommend friends (and rewards them with $10 credit when they join) as well as businesses to include on the site.

Have you tried Groupon? What are your thoughts? Leave them in the comments below.

Looking for a job is often difficult, and in this economy it can seem nearly impossible to get hired, even if you have the skills and experience you need. Here’s a look at two recent articles with content that might affect your ability to snap up a job in the coming months.

Sweating the Small Stuff

In this post from WalletPop.com, the author examines the importance of looking beyond yourself to maximize your chances at getting hired. In other words:

• Consider your potential employer’s needs and wants. You may feel like your best asset is an ability to speak two languages, but if a potential employer is primarily concerned with computer literacy, play up your skills in that area.
• Do some digging. In the era of Facebook, Twitter and now Buzz, it shouldn’t be too hard to track down some information about the company you’re applying to. Apply what you learn by asking questions in an interview that show you have some background knowledge and focusing on your qualities that best match the company’s needs.
• Listen. It may be tempting, in an interview, to gush about your skills and qualifications – but that can be counterproductive. That information is already on your résumé, so use the interview as an opportunity to demonstrate your people skills.

In this employment climate, paying attention to details like how you respond to an employer’s questions can make a big difference in your career future.

Congressional Progress on the Jobs Bill

Meanwhile, a report from the Wall Street Journal notes that progress on a jobs bill currently on the table in the Senate has been hampered by the massive snow storm in the Mid-Atlantic region, and may not resurface until after the upcoming Presidents’ Day holiday.

Here’s what the bill, if it passes, would do:

• Give businesses that hire unemployed workers a Social Security tax cut; and
• Give these businesses an additional tax credit if they retain their new employees for a year.

Some critics worry that, as it now stands, the bill won’t provide sufficient motivation to get companies hiring again. Its other provisions will be largely determined by Congressional debate when senators and representatives are able to get back to work.

As the effects of the recession continue to impact American’s where it hurts most (the pocketbook), we’re all looking for ways to save money. But being frugal means different things to different people, and, as one author suggests, means different things than it did a generation ago.

A recent interview with author Chris Farrell on the blog WiseBread.com explores the differences between what frugality meant a generation or so ago and what it means today, as Farrell suggests in his new book “The New Frugality”. The full interview is definitely worth a read, but here are some takeaway highlights for people working out of debt.

• “Frugal” does not equal “stingy”. The “old frugality,” the interview suggests, was about saving money at all costs, denying yourself pleasures being one of the most noticeable of these “costs”. Today, though, frugality means treating money as a tool: saving where you can so you can afford to indulge in things that are important to you.
• Frugality promotes sustainability. Though it’s often applied exclusively to the environmental movement, “sustainable” is an important word for anyone who’s working to stay out of debt. Are your borrowing habits sustainable? What about your shopping and entertainment habits? Part of being frugal is adopting a lifestyle that won’t come crashing down on you if you lose your job or get hit by an illness or some other emergency—which can often lead to filing bankruptcy. Plus, acting frugally is often great for the environment!
• Frugality promotes community interactions. In the old days, people were more likely to pass along baby clothes and other used items when they were finished because people often couldn’t afford to buy new ones. Now, frugal people are returning to that practice because it uses fewer resources and promotes friendship and support between community members. Oh, and it still saves money.
• Frugality can be fun. Making do with less can be fun for a number reasons. First, it often demands creativity, which can mean anything from getting together with friends to figure out a problem to hosting get-togethers at home to save on restaurant food. Second, it often means you need less money, which means you may be able to work fewer hours or retire sooner than you expected—and who doesn’t want a little extra free time?
• Frugality is flexible. If you don’t like the idea of eating cabbage and beans every day for the rest of your life, that’s okay. You can still be frugal. It’s all about figuring out what you do love (new clothes? movies? traveling?) and balancing your expenses so that those things take priority and you don’t cringe when paying your bills, since they’re for things you really wanted to do.

What do you think about being frugal? How are you finding ways to save money? Leave your thoughts in the comments section below!

If you live in an area where public transportation, walking and bicycling are not realistic options for getting around, your vehicle is likely a major expense. Luckily, there are ways to minimize the amount you spend on your wheels and maximize your time between car purchases.

Buying Gas

This is perhaps the most tangible expense for drivers, because we fill up constantly (or so it sometimes seems). To limit what you pay on gas:

• Keep track: Save receipts at the pump and figure out what kind of gas mileage you’re getting. If your MPGs decrease, it’s probably time for a tune-up.
• Keep it legal: Staying within the posted speed limit saves gas – according to the government, for every five mph you accelerate over 60, you’ll essentially pay an extra 24 cents per gallon of gas!
• Keep it steady: Quick acceleration and braking can eat gas, so maintain a steady pace (unless it’s an emergency!).
• Turn it off: If you’re idling for more than 10 seconds, it’s probably more efficient to turn off your car and restart it. That’s good to know if you’re waiting for someone or in bad traffic.
• Tune it up: Regularly checking your air filters, tire pressure and fluids can help you maintain optimal safety and optimal gas mileage. If you’re comfortable handling your car yourself, save money by performing minor maintenance on your own; if not, invest in a good mechanic.
• Clean it out: Extra weight in a vehicle can worsen gas mileage, so make sure you aren’t lugging around anything you don’t need to.

This post from FiveCentNickel.com also suggests keeping the inside and outside of your car clean. In addition to preventing rust, the blog wisely points out that regular cleaning will lower your chances of craving a new car for its pristine feel.

Paying for Insurance

Be sure to comparison shop for insurance—rates often vary widely at different companies. And keep track of your policy—many offer discounts for blemish-free driving records or for having a vehicle with certain safety equipment.

Another place you may find savings is in memberships you have: some groups offer discounted auto insurance, so be sure to check membership information you have for all your groups!

Getting a New Car

Financing a car is expensive. If you plan ahead and open a savings account exclusively for your next vehicle, you can save thousands on interest when it comes time to make the purchase. Experts suggest socking away the amount of a car payment each month so you’ll be ready to pay cash when you need new wheels.