money really matters

Are you going to one among millions who is getting ready to beat the crowd and crab whatever you want on the Black Friday sale?

Or many who are planning to wait out and avoid the blackfriday sale this year?

Either way, you are thinking about Blackfriday sales like me, a 10 year veteran Blackfriday shopper. Black Friday is just less than a week away.

It is the biggest shopping event of the year happens next day after Thanksgiving. Like Thanksgiving, Blackfriday shopping has became a tradition to many Americans and American families. It actually kick starts the Christmas shopping season for many and serves has a good marketing platform for retailers and manufacturers to introduce new products, get rid off old ones through rebates and special deals so they can write it off from their balance sheet.

This year, it is going to be yet another different but dull year compared to past.

Blackfriday 2008 - A look back

Last year, the recession just started and credit crunch was hitting the market as many big banks were going solvent. A quite lot of mergers were happening in all industries including many bankruptcies. Circuit city, one of the big electronic retailers filed bankruptcy and went away from the scene.

Many manufacturers and retailers faced a challenging shopping season as the economy was heading to wards worst recession. They don't know what is in the stake for next year, so they slashed prices to get rid of their stock levels and reduced their inventory. It triggered more sales even after the Blackfriday event than usual. Also there were not many attractive products in the market as manufacturers were cost cutting and waiting for the direction in the market. They just wanted to sell their old products with some improvements to retain their market cap.

From the consumers front, it was very cautious effort as many concerned about jobs and lot worried about the investments since the stock market was heading to wards downtrend starting to see the fall like deck of cards. All played it safe but still many consumers continued their shopping spree with their stashed away cash taking the rare opportunity and got things on heavy discount.


Blackfriday 2009 - Dull and Different

It is going to be totally a different year than past years and more importantly than last year. It is the first Black Friday after a long recession. The nations unemployment rate is in the record high of 10.2% and economy is still dragging its feet waiting to make a turn towards an uptrend.

At this time, shoppers are thinking about breaking their tradition by avoiding the Black friday sale altogether. The reason, they don't want to go through the hassle of getting up early, standing in big line for hours or camp out if the same product will Be sold much cheaper after black friday like last year. In many blackfriday forums, they were discussions about missing this year's fun sale event. This change in mind set is happening with many Americans especially because of last year experience.

However, many veteran Blackfriday shoppers were saying, this year is different for many reasons and won't be same as last year. Because of slow economy and less production which means less supply of products. Manufacturers don't want to over produce and take the chance at this tough times. Also many consumers are in the saving mode after a long time. Americas saving rate has gone up in the past few months. Basicaly less supply and less demand so products might be limited on the stores shelf. It is better to hurry up and get things instead of waiting because of the uncertainty. Check out this video from news channel which talks about this year scenario.

It is better sometimes to wait out for the right time and right price but it depends on the importance of your need. If you really need the item and been waiting for this sale event, you better plan to buy after researching the sale price.

Ask yourself which camp you wannabe this year. Are you going to be in the blackfriday line or just going sleep in?

On the other hand, if you are among many millions who don't bother to even blink for the blackfriday, I would recommend to at least try out once for the sake of experience and fun.

Go ahead and share your Blackfriday experience. How long you been doing the Blackfriday shopping? Also come and check out tomorrow, I will be posting more tips, tricks, hot sale items, good websites and more things to do just before, after and on the day of Blackfriday.

Healthy mouth, Healthy body, that's an old expression.

Healthy mouth, Healthy body and Wealthy pocket , it's the new mantra.

A Healthy body starts with good dental hygiene. That's what drives us all to brush our teeth first thing in the morning. With that comes, fewer trips to dentist and more importantly to physicians which translates to less money spent on dental and medical expenses. Believe it or not, chewing sugarless gums comes for help to make it even easier in keeping your teeth strong and protect from cavities.

When we were kids, we were told to avoid sugar-ladened chewing gum for health concerns. Now, it is hard to see a kid without gum in their mouth. At the same time, chewing gum manufacturers came a long way attracting health consicious consumers by providing products which ensures good oral health. In this post, we will see how sugarless gum helps to save money and keep us healthy.

What are Sugarless Chewing Gums?

Chewing gum is no longer is meant to provide a sweet treat or freshen breath. It has taken different avatar in oral health. You've seen the claims on sugarless gum wrappers. Packages of Orbit say the chewing gum helps strengthen the teeth. And a package of Trident gum containing xylitol says it helps prevent cavities. The question in our minds, Are these claims solid?

According to Martin Schlatter, Wrigley's marketing chief, it seems so. A three-year clinical study showed 8% fewer cavities, and a two-year study found a 38% drop, because chewing the gum strengthens teeth and creates saliva that reduces plaque acids.

But not all chewing gum have this magic packed inside, health advantage is totally depend on the type of gum chewed. Two types of sugar substitues are used in sugarless gums depending on the manufacturers. They are xylitol and sorbitol. They are also called sugar alcohols, referring to their chemical make-up but they don't actually contain alcohol. By adding natural sweeteners like xylitol, manufacturers added the benefit of fighting against bacteria.

How Sugarless Gum works?

Let's take Xylitol. It is a natural sweetener found in fruits such as strawberries, plums and pears. Xylitol looks and tastes like sugar. For this reason, it's used to sweeten food and candies like chewing gum, gumdrops, mints, medicated syrups and tablets, toothpaste and mouthwashes. It' is also found in dietetic and diabetic foods. Several dental associations endorse sugar-free products that are at least 50% sweetened with xylitol.


Xylitol is an anti-microbial which acts against the bacteria itself, preventing tooth decay according to scientific research. When bacteria in your mouth combine with sugars, they produce acid. This acid damages teeth, causing cavities. Bacteria in your mouth can't break down xylitol, so no acid is produced. Also, the sweetness of xylitol encourages salivation. Saliva washes out the mouth and helps prevent cavities.

It is important to note that studies suggest that sugarless gums made of another sugar substitute called sorbitol do not seem to have the same preventive effect. Sorbitol can increase saliva flow which secondarily strengthens teeth, explains another analyst. But there are no studies that directly show that sorbitol-based chewing gums can strengthen the teeth.

How does Chewing Sugarless Gum save money?

In a PR Newswire post regarding a Majestic Drug survey, we learn some interesting statistics that may not shock you, but will inform you.

One in six Americans experienced a dental emergency in the past year.

Seventy-two percent of Americans have fillings, caps, or crowns, and 23 percent of dental emergencies relate to these restorations.

The survey revealed that out of a thousand people, respondents with an annual income under $35K had a higher instance of dental emergency than those with an income exceeding $100K.

Prevention is always better than cure. Brushing one's teeth and scheduling
regular visits to the dentist are primary in preventing dental and gum disease, but chewing sugarless gum will strengthen teeth and assist in preventing cavities. That, in turn, adds to a person's savings.

For example, an Orbit gum 12 pack with 15 strips in each pack cost = $15. It is 9 cents a strip. If you chew 5 pieces for an average 25 days, it cost just $11 a month and $132. It is far better than spending $150 - $250 for fillings, pulling teeth and more for pain relivers as well. Think about it!

What should I do?

As reported by npr.org, Milgrom, dentist at the University of Washington and his colleagues have studied how much xylitol is needed to actually knock out bacteria and prevent cavities. And he has two pieces of advice.

First: Read the ingredient list on the gum package. If xylitol is the first ingredient, then there's probably enough of it to be effective. (below list Sorbitol is the first ingredient and not really sugarless gum)

And second: Chew a lot of it. "You have to chew at least two pieces, three times a day to have an effect," says Milgrom.

This may sound like an inordinate amount of chewing, but in Finland kids have really gotten used to it. The Finns have been chewing xylitol gum for years as part of a public health initiative to reduce cavities. And Finnish researchers have documented a preventive effect in numerous studies going back to the early 1970s at the University of Turku.

Throughout Scandinavia, xylitol products are widely available, from lozenges and toothpastes to chocolate and candy gummy bears, says Ramos-Gomez, a pediatric dentist at U.C.LA.

Sugarless chewing gums are not only good for you but also good for your pocket. And of course, dental professionals have one more recommendation. Watch your diet. Make certain your toothpaste includes a fluoride ingredient.

Source: Last month(Sep) was dental month and npr(http://www.npr.org/templates/story/story.php?storyId=106347234 ) aired an interesting story on chewing sugarless gum triggering me write this blog after good amount of research. Thanks to NPR.ORG.

Credit card debt is considered to be the next storm to hit the fragile finance industry. The average American household has $8329 in credit card debt, according to the Nilson Report. Credit card default rates peaked in the past few years to reach 9-10% and expect to climb above 12% by the first quarter of 2010 because of large unemployment population.

Adding to these alarming statistics, there is yet another shocking news. As per FTC(Federal trade commission) recent report, Ten million Americans in the past year alone have fallen victim to this destructive crimes. Identity theft is one of the fastest growing crimes in America. It is not only tricky to handle credit card accounts, it gets even important to keep them safe.

The purpose of this Quiz contest is to create consumer awareness about new credit card laws, important identify theft practices and how to handle your credit properly. Please take time to go through the hints and learn more about the topic before answering the quiz questions.

Winner Prizes

First Place:
Educated Investor - Guide to Investing (worth $30)
A well-designed portfolio of stocks, bonds, and mutual funds that matches your investment goals can help you build solid wealth over time and meet your needs for retirement and other large expenses, such as education costs. The Educated Investor Guide To Investing? will give you a solid understanding of how these investments work, so that you can plan to meet your own financial needs.

Second place:
Willmaker Plus 2007 - (worth $10)
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Rules

1. Only one entry per person.
2. Participants should be from United States.
3. Winners will be selected as per their answers and best tip contribution. Author has his own authority to select the winners. Any questions, email me at info@moneyreallymatters.com

Contest end date: Sep 30, 2009

Disclaimer: Savingadvice.com has no connection with this Quiz contest. This quiz is only meant to create awareness among consumers not intended for any other purpose. Best tips will be published over the internet and the submitter gives all the authority to his contest owner to publish on the media.

Have fun learning and answering the questions.

Please go to moneyreallymatters.com Credit Quiz page to start answering.

President signed the Credit Card Accountability Responsibility and Disclosure Act of 2009 into law on May 22, 2009. Amending the Truth in Lending Act, the Credit Card Act of 2009 requires certain measures to be implemented by the credit card companies in order to comply the new law and help consumers, taking efffect on July 2010. Let me share the changes and challenges of this new law from my research.

Changes
Some changes to look out from the credit card companies:

- Require CC companies and banks to give customers a reasonable time, such as 21 days, to pay the bill before it is considered late.

- Bans double-cycle billing, which eliminates the interest-free period for consumers who move from paying the full balance monthly to carrying a balance.

- Prohibits retroactive rate increases unless the cardholder is at least 60 days behind in paying the bill. If a person does fall behind and the rate on past buys is increased, lenders must restore the lower rate after six months if the cardholder has paid monthly bills on time.

- Requires lenders to post their credit card agreements on the Internet.

- Requires that customers receive 45 days notice prior to any change in the annual percentage rate (APR). The notification must also inform cardholders that they have the right to cancel the account before the effective date of the rate increase. If a cardholder cancels the account, the cancellation cannot be considered a default on the account, and cannot trigger an obligation to repay the account in full.

- Prohibited from increasing annual percentage rates (APRs) that apply to existing balances unless specific conditions apply. An APR may be increased only if
1) the index on which the rate is based changes,
2) it is a promotional rate that has expired,
3) a cardholder fails to comply with a hardship workout plan,
4) the account falls 60 days past due.

- Requires anyone under 21 to prove that they can repay the money before being given a card, or have a parent or guardian promise to pay off their debt if they default. (Big blow for college students)

- Prohibits over-the-limit fees unless a cardholder elects to be allowed to go over a limit.

- Requires lenders to say how much time it would take and how much money in interest would be paid if only the minimum monthly payments are made.

- Requires that gift cards remain valid for five years. Under the Senate’s rule, retailers and others that issue Visa, MasterCard, American Express or Discover gift cards or certificates will have to print explicit dormancy fee information on the card. Sellers of the cards will also have to inform the buyer of the fee.

- Bans "pay-to-pay" fees, which are charged when someone pays the bill by phone or on the Internet.


- CC companies need your permission before allowing you the “privilege” of spending more than your credit limit and paying a fat $39 fee for that privilege.

Other features of the Credit CARD Act of 2009 include:

If different APRs apply to separate portions of an outstanding balance, the amount of any payment beyond the minimum payment due must be applied to the portion of the balance with the highest APR.

If the payment due date is a date when a creditor does not receive or accept payments by mail (e.g., weekends and holidays), the creditor cannot treat a payment received on the next business date as a late payment.

Credit card companies are prohibited from charging a fee based on the manner in which a payment is made (e.g., on line, by telephone).

Some of these reforms are already on track to take effect in July 2010, under new rules by the Federal Reserve.

Challenges

The new law will be a savior for many credit card holders who are facing credit card debts with high fees during this tough times. But for people who pay off their bills in full each month, and milk card rewards programs for everything they’re worth, there is some cause for concern. After Home affordability and stability plan, this new law is passed to help distressed credit card holders affects consumers who act and does thing right. They might be less in percentage compared to the other group but still a reasonable crowd not really happy about this change for certain reasons.

1. These restrictions will cost more expenses for the credit card companies. To compensate, there are chances of them assessing annnual fees and increase or add other fees.

2. Good credit customers are offered happy rate of 0% APR which already vanished the scene and will never been for a long time to come.

3. With added restrictions, it is going to be hard to get credit cards, which might make more people strapped for money in this tough times.

4. Stripping reward programs - For months now, the card companies have been threatening to cut rewards programs sharply to make up for revenue lost because of the new restrictions. So will credit card companies kill reward programs or drastically scale most of them back? Of course not.

“If you strip away the reward component of a credit card, it’s essentially a commodity,” said Rick Ferguson, editorial director at the loyalty marketing company LoyaltyOne. “The reward is what gives it its personality. It works from a branding perspective as well as a mechanism to influence customer behavior and consolidate spending on a particular card.”

In all, I would say, this new credit card protection bill has lot of good measures packed to help all credit card holders whether they going thru tough times or not. It is very good step forward and should be welcomed but we will have to wait and see how it plays out in the field.

Thats my take. What is yours?

Recent days, I see one among three cars on the road are either new or almost new, waiting to get their new license plate. Thanks to the CARS program putting more fuel efficient cars on the road taking out gas guzzlers but no thanks. It seems to be the talk of all news channels and the most popular stimulus package of all in recent months.

It has become so popular, it even ran out money so fast in just weeks and waiting for approval to get more funds almost two billion to jump start again. While it is on hold in process to get more money, we take time to analyze,

Is the program really helps the consumer, economy and enviroment as it supposed to?

It is a $64 question. I tried to do my investigation as usual from many information loaded internet websites.

Quick Overview of CARS program
Cash for Clunkers program also known as The CAR Allowance Rebate System (CARS) is a $1 billion government program that helps consumers buy or lease a more environmentally-friendly vehicle from a participating dealer when they trade in a less fuel-efficient car or truck. The program is designed to energize the economy; boost auto sales and put safer, cleaner and more fuel-efficient vehicles on the nation's roadways.


Is it helping the consumer?

Answer to the question is, Yes and No. Consumers will be able to take advantage of this program and receive a $3,500 or $4,500 discount from the car dealer when they trade in their old vehicle and purchase or lease a new one. Consumers do not need to register anywhere or at anytime for this program. However, to find out eligibility requirements click here and also check another website http://www.cashforclunkersfacts.com/ for more info on this program.

By giving the cash credit to auto buyers while trading in their gas guzzlers, it is free money and helps the consumer. But it is again putting the consumer to debt and adding their debt load. Many consumers who can't even afford to buy a new car at tough time. They just want to get the cash credit and blinding buying without realizing they need to pay back the rest of their auto loan which not even tax deductabile. It was similar to the situation people bought big houses when they can't afford mortgage payment. It not helping any middle class who are suffering from loss of jobs instead adding their burden by teasing them with free money.

So please don't go rushing to get a new car if you can't even afford to make car payments says Houston chronicle sharon buggs. She also says, if you can pay all cash for the vehicle after the cash credit and other incentives are applied, then you can afford to buy a new car. Also if your take-home pay can absorb a monthly car payment — and you are not in jeopardy for losing your income stream because of a layoff — then you can afford to finance the purchase of a new car. Check out some tips from her at Houston chronicle.

Is it atleast guzzling the economy?

Not really. It is only helping one industry which is Auto. It is also in a way boosting customer confidence with money flowing between consumer, banks and manufacturers. Thats a good thing. Banks and Auto dealers are writing off loans and loosening the credit crunch a bit.

It sure helping auto makers like Ford, Toyota who is selling more cars compared to last year. The program helped lift Ford Motor Co. to its first monthly sales increase in two years, the company's top sales analyst said Sunday. July sales results mark the first year-over-year gain for Ford since November 2007 and apparently the first uptick by any of the six biggest carmakers since last August, Ford sales analyst George Pipas said. Check npr.org for more info.


OK! What about reducing carbon residues?

Not exactly! I know it is meant to take out gas guzzlers out of the road help which eventually help reduce gas consumption but it doesn't affect lot on reducing carbon residue. According to npr's report, an analyst calculates that if you trade in an 18 mpg clunker for a 22 mpg new car (22 miles per gallon is the minimum mileage allowed for a new car under the program), it would take five and a half years of typical driving to offset the new car's carbon footprint. With trucks, it might take eight or nine years.

Of course, the bigger the mileage improvement from your old car to the new one, the more gas you save and the faster you work off the new car's carbon footprint. If you trade in a 20 mpg car for a Prius that gets about 48 mpg, it saves so much gas that you can offset the Prius' footprint in about a year and a half. (But a 20 mpg car doesn't qualify as a clunker, so there's no government voucher).

Analyst don't see a direct or immediate impact on the reduction of carbon residues by this program but it does help in the long run. It also takes whole lot of cars to be taken out of the road to really make a difference. Check out another npr.org report, "Clunkers" program isn't really green.

Bottom line, in all aspect, I don't see a real value to this CARS program. It neither nurtures the consumer personal finance status nor the environment. I only has shorter impact to the economy especially to auto industry. At this time of recession, when the unemployment rate is very high and people are struggling to feed their family, we need better program with greater impact. This program only helps smaller portion of people who either has good job or good bank account or credit to spend for their new car.

Thats my take and I am sticking to it.

Saving is a habit and not a hobby. Let me start with that note. You might hearing lot on "How to Savings?" lately over the Internet. They always suggest some hard to follow strategies that doesn't fit to all type of people. I am here to share my own simple, realistic, and ideal plan sure won't turn you down on your thoughts about savings. So go and read on...

Whether you are looking to save small for your IPOD or little bit more for a new car or bigger amount for your first home. Let me tell you first thing you should know.

Savings is hard and never comes off the cuff. Not many like to hear, sorry that's the truth. You should first and foremost realize that tough fact. I always like to expose the fact first instead of coating the sugary picture before diving deep in. When I was kid(6th grade), my mom showed the value of real money. She taught me, how to save every paise(Indian currency equivalent of penny). I started my first savings bank account when I was at my 7th grade and started putting every rupee(Indian currency equivalent to dollar) I earned. That's the foundation for my savings and spending habit. If you don't have that Saving habit built into you as a kid, its going to be hard to start with but it was never tough act. Anything is possible under Sun and above earth if you ask me. It's just needs determination and to make habitual by constant practice.

A quote by Frank Outlaw goes very well at this point.
"Watch your thoughts; they become words.
Watch your words; they become actions.
Watch your actions; they become habits.
Watch your habits; they become character.
Watch your character; it becomes your destiny."

You need to first cultivate the thought about Savings. Then talk about it to your spouse or friends anytime you talk about money or expenses. Then act on it by following any or all of 3 methods.

Prerequisite: Open a savings account either with Internet banks or local banks with just minimum deposit of $1. Credit unions are best for small saving accounts.

1. Start putting your change(pennies or dimes) which you gather every day or week in a piggy bank or a simple container. Every month, take the change to near by bank and deposit it to your bank account.

2. On every ATM withdrawal, take $10 out of it and put it away in the secret compartment in your wallet. Don't ever touch it whatever comes. At the end of the month, take it all out and deposit in your savings account.

3. I call this one it Blind savings - Put away a small amount from your paycheck automatically as a Payroll deduction or auto deduction from your checking account to your CD or Savings account.

Once you start taking actions. Everything falls into picture automatically transforming yourself and the savings habit gets built slowly into you. Once you got the habit, it comes off the cuff without even thinking about like your second nature.

Don't think its not possible. You already took your first step thinking about it on the path towards making savings a habit.

So start working your next step by talking and taking action.

"Financial Freedom" - The magical buzz words, lot of you might have heard yelled at you in radio's or whenever you attend a finance or investment seminars. It is very lightly used these days without any weightage to the actual concept. Let us put some thoughts together to dwell on to understand better.


What exactly mean to be Financially Free?

I know many of you have the answer just right under your collar. Financial freedom means "Earn more so I don't have to count each dollar I spend and not worry about paying my expense every month" Or "Make more money to spend like there is NO tomorrow".

Is that your answer or something close?

If you think you got the right answer, I am sorry to say that you are wrong. It's not just you got the answer wrong, it's just general outlook is not in synch with the reality. When you search google, you will get the first result from Wikipedia as "Financial freedom describes a well-planned lifestyle where one no longer is required to work for income to cover their expenses. ..."

It is not your fault to get it wrong. It's the people who started it all out and echoing everyday so it is easy for them to mold to their own view point.

Like many of you I also thought that is the answer few years ago. We all think if we have more money that will solve all the problems. No, it is not going to solve it. It is actually going to create more problems and even bigger worries.

Financial freedom is not about having or earning more and spending whenever for whatever you want.

According to me, "It is all about being content with what you make now and manage to work within the boundaries instead of stretching it long to get in debt". It is being self sufficient with the money you have and manage to spend wisely for all the expenses and grow it efficiently for the future. That is what I call Financial Freedom.

You might even have million dollars. If you don't manage it wisely, it will vanish in a month. With that million dollar comes great power and lot of responsibility. If you are not responsible enough to manage it, you will fail pretty soon and you still won’t get to sleep well at night.

Let me take a simple example. For a scenario, we assume an average middle class American earns on average of $40,000 - $50,000 a year. If he makes a habit to work with this income limitation and make proper planning to take care of all the expenses and also manage to grow some money(10%) for the future that's what I call financially free. If you don't have debt, you pay off and you have ability to manage and grow your hard earned money, that's simply financially free in its own version.

Our schools or college system, never teach us lot about Money management unless you opt for finance course. If you take one, it will be more theoretical & money lessons can only be learned in a hard way by practical means. But you don't have to learn from your experiences and mistakes, you can also learn from others mistakes. Thats a wise way.

So don't make the mistakes others are making by going beyond your boundary unless you have the guts to pull back otherwise you will be in deep deep debt by inviting trouble. Watch out folks, don't just take the advise of you finance guru's or planners. Give it a thought and dwell on something on your own.