1. Create a new budget. A new year calls for a new budget. Rolling over an existing budget might be easy, but making changes now is easier than dealing with debt in the future. Have you moved, switched insurance, or added a new family member (child or pet) in the last year? Take into account what changed in 2011 and what you’d like to change in 2012. A pay increase or bonus might leave you feeling carefree, but using that as an excuse to splurge can quickly destroy your old budget. Update your budget (or if you don’t have one, start one) with help from these top five budget sites.

2. Ditch credit card dependency. If you’ve already got your budget under control, then putting the credit cards away shouldn’t be too hard. We don’t usually budget cash for impulse buys, so without cash in hand we often turn to the credit card quick fix for items we want but don’t need or can’t currently afford. The easiest way to eliminate this debt inviting thinking is by leaving your credit card at home. Removing the temptation is one way to break free from credit card dependency.

3. Improve your credit score. Don’t let your credit score surprise you. A bad score can keep you from getting the best interest rates, force you to pay deposits for utilities, or even cost you a job. Check your score, and if it’s below 750 make a commitment to improve your score in the New Year. Check out these tips for how to beef up your credit score.

4. Cut spending on [insert budget category here]. This year make a vow to lower your grocery bill, entertainment bill, or clothing bill. Using coupons (not just cutting them out) and comparison shopping can save a lot more money than you’d think. Search a number of different websites or newspapers for the best deals available instead of buying something the first time you see it. Pricegrabber.com even does the comparison shopping for you. Even small changes like attending the cheaper daytime matinee instead of the pricey Friday night movie can add up to big savings.

5. Grow your savings. Cutting spending is a good goal, but a better goal is to grow the money you’ve saved. For example, that $3.50 you saved saying no to the office Starbucks run once a week is good start, but why not take that $3.50 and turn it into nearly $1,000 after just five years. By investing those saved costs in a savings account you can actually profit from your good behavior. Check out how to build long term wealth with more easy tips.

It’s exciting news, but it remains to be seen if consumers kept up these good habits on Black Friday. US retail sales hit $11.4 billion to kick off the holiday shopping season, which is exciting for retailers—but not exciting if it means people are spending beyond their means.

A recent study by the Western Union Co. shows the number one consumer worry this holiday season is overspending. To prevent holiday-induced debt, create a budget before you hit the mall (or click your mouse) and stick to it. Going cold turkey on using credit cards for the holiday season is another smart move to avoid debt.

Can’t break the credit card habit? Counting on only making the minimum payment each month on a holiday credit card bill? Think again. Only paying the minimum will cost you more in the long run. For instance, if you rack up a $3,000 shopping bill on a credit card with an 18 percent interest rate, it will take 10 years to pay it off if you’re just making the minimum payment. That includes $1,700 in extra interest payments!

Instead of racking up debt this holiday season make a list- check it twice, budget wisely, and when you find that perfect present for Mom or Uncle Mike, be nice to your budget and resist the urge to splurge on “just one more” for yourself. Check out this BetterBudgeting.com article for 63 great gift ideas under $10!

Sulekha.com

Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.

There are a million articles on how to save more money, but how many of them contain advice you can actually use? We distilled the best advice we’ve ever gotten into five simple and universal truths.

1. The best way to save money is not to spend it. Even if you’re getting something on sale or at a great price, you’re still spending money. So when shopping for anything — from groceries to a house — make sure you really need it before you pull the trigger.
2. Learn how to comparison shop. For airfare and hotels, check multiple airlines at once using aggregate data from sites like Kayak.com. Check what interest rates different banks are charging on mortgages and credit cards on Bankrate.com. And before filling up your tank, find the cheapest gas in your zip code on GasBuddy.com.
3. Knock out impulse purchases. If “I just want to treat myself” is in your vernacular, add up how much a $5 nail polish, $10 iTunes album download, or $4 magazine costs you on a monthly basis. That may be enough to make you speak a different language soon.
4. Know when to buy used. Certain things — like mattresses and medicine — should always be purchased new. (Just whispering the words “bed bugs” in New York will cause many people to run screaming from you.) But there are plenty of normally pricey items — from jewelry to musical instruments to home decor — that can save you a bundle on great-quality stuff when bought used. Know what they are and get friendly with Craigslist and Kijiji.
5. Ignore the Joneses. Keeping up appearances when you can’t afford to puts you on the fast track to debt and financial insolvency. That may mean limiting your contact with people who live a faster lifestyle than you do, but a friendship with a competitive undercurrent is not a friendship you will miss.

5MinutesForMom.com

Spinning off Tuesday’s post, the question remains: If you do manage to cut your spending on discretionary purchases, how much money does that help you save every year?

Bills.com has a nifty Ways to Save Money feature that shows you how much your savings can add up if you sock away the money in an interest-bearing account. For example, cutting $5 per week from your grocery bill every week adds up to a savings of $1,300 over five years, assuming a 1 percent rate of return. That’s a fairly simple change that you can make with dramatic long-term results.

One drawback: At the moment, low-risk savings vehicles (like savings accounts and certificates of deposit) are paying peanuts — a fraction of a penny on the dollar in most instances. And Bills.com’s calculator does not allow users to select anything under a 1 percent return, so it may be overestimating how much your savings will compound over time.

But we offer a solution. Punch your estimated savings and the actual rate of return you’re getting in your savings account into our Compound Interest Calculator to play around with more realistic outcomes.

USMint.gov

You’ve seen those commercials on TV that proclaim, “For just 50 cents per day, you can change someone’s life.” And while some of those charities are no doubt worthy, what if the life you could change were your own?

This is not a gimmick. To see how spare change can add up, I was just playing around with Econ4U’s Compound Interest Calculator to see what saving two quarters a day could earn you in the long run. If you sock away 50 cents every day, you’ll have $182.50 at the end of one year. Not bad in itself.

But what if you put that in a basic savings account paying 1 percent in interest?

Well, after five years of continuous saving, you’d have $930. And after a decade? You’re up to a whopping $1,908 — all for saving just 50 cents per day.

No matter how close to the brink you are, just about anyone can scrounge up two quarters by emptying your pockets, keeping an eye on the sidewalk, and checking change-return wells in vending machines. Hey, even the office couch may yield a return.

As they say, a penny saved is a penny earned — and with compound interest working for you, that makes nothing but sense.

ScholarshipExperts.com

Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.

At the beginning of the summer, we brought you our tips on finding your first apartment. Now it’s time to make your space your own. Read on for our advice for doing so on the cheap.

1. Buy secondhand furniture. Ikea may be cheap, but it isn’t necessarily the least expensive way to furnish your apartment. Stalk Craigslist and Kijiji for deals on used furniture in your area and you can score excellent deals on high-quality pieces (just don’t forget to negotiate — sellers expect it!). One caveat: A lot of cities are experiencing a bedbug epidemic, so it may be best to steer clear of upholstered furniture and used mattresses unless you can be certain they’re pest-free.
2. Vet your roommate(s) carefully. When you sign a lease with other people, you’re tying your home life to them. So first make sure you’re all on the same page about the financial rules and who is responsible for paying each bill on time. Nagging a previously good friend for his share of the rent every month or begrudging her for eating your cereal is a surefire way to erode friendly feelings fast.
3. Use a good credit score to negotiate on utility deposits. Got a great FICO score? That could be your ticket to getting utility companies to reduce or waive deposits on starting service. At the very least, it doesn’t hurt to ask. If your credit score could use some rehab, here’s how to go about it.
4. Read the fine print on interest-free loans. It’s par for the course for appliance stores to offer zero-percent interest on purchases for a set period of time. But miss a payment and the interest rate becomes exorbitant. Before you splurge on an awesome media center or laundry set, know what you’re putting your signature to.
5. Don’t always buy in bulk. Going to a big-box store to stock your pantry is always a good idea, right? Not necessarily. Everything you buy and don’t use for a long time is money that’s sitting in your pantry instead of earning interest in a bank account, so bulk-buy wisely. (For more tips on saving money on groceries, click here.)

AmericanExpress.com

In the good ol’ days, a gold or platinum credit card signaled that you had arrived. It meant lenders considered you a good credit risk with significant spending and a sterling payment history. With that came perks, most often a higher credit limit and cash back on purchases as a concession for a bank’s best customers (and typically accompanied by an annual fee).

However, these days even recent college graduates are carrying around prestige cards. (I’m one of them: I got my first platinum plastic when I was 23 with just five years of credit history to my name.)

The average American has four credit cards with an average balance of $15,799 among those with credit-card debt. (Only 25 percent of Americans do not have any credit cards, and 30 percent of Americans pay off their balances every month.)

There are still perks-paying cards for those who actually avail themselves of such services. Take the American Express Centurion, a.k.a. the “Black Card,” which remains invitation-only. Just to qualify, a consumer has to charge six figures on an American Express account annually (exactly how much, the company will not disclose). And once your application is accepted, you can expect to pay a whopping $2,500 annual fee in addition to a one-time $5,000 initiation fee. In return, customers receive top frequent-flyer status on several airlines, free nights at the world’s most exclusive hotels, personal shoppers at stores like Gucci and Neiman Marcus, and 24/7 international concierge services.

Still, smart consumers are more interested in talking turkey: What’s the annual fee? What’s the interest rate? And are those perks worth the money?

PerfectWeddingMag.com

If you’ve followed the conventional wisdom of making a budget to live within your means, you may think you can just kick back and reap the benefits, right? Not exactly.

There are a number of life changes that will require you to tweak or even completely redo your budget. Here are a few of the most important changes you can make to ensure your budget can adapt to major life events.

• You get a raise. You may be tempted to spend a chunk of that money on a bigger apartment or a fancy new car, but resist. If you allow your expenses to expand every time your income increases, you’re not any more secure financially than you were before the raise. Keep your monthly expenses the same, though, and your savings accounts will reap the benefits.
• You lose your job. When your paycheck evaporates, it’s time to tap into your nest egg. However, maintaining your previous lifestyle without an income is a fast way to deplete your emergency fund. What you need now is a [blank]-hit-the-fan budget. Strip down your spending to stay current on the essentials for survival (housing, utilities, food) and any debt obligations (student loans, minimum credit-card payments, and other loans) to keep your credit in good standing.
• You get married. When you legally become a two-income household, the IRS starts looking at your earnings in a new light. Sit down with your new spouse to make sure you’re paying the correct amount in taxes every payday to avoid an unhappy wedding gift from the taxman next April 15.
• You have a baby. Not a newsflash: Kids are hardly cheap. The Department of Agriculture calculates it costs $226,920 to raise a baby to adulthood. However, the early years need not be the most expensive. An infant doesn’t need dozens of toys, books, or expensive outfits (especially considering she will outgrow all of the above at record speed), and as long as it’s safe, he won’t care how much you spent on his nursery furniture. Resist the urge to splurge gratuitously on your new arrival. And here are some important other financial milestones to hit before Junior arrives.

RetireSensibly.com

Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.

CDs, money markets, and Roths — oh my. The world of saving for the future is an alphabet soup, but we’ve put together this handy glossary for helping you figure out where you should stash your cash for a rainy day.

1. Savings and checking accounts. A savings account is probably the very first account you ever opened — perhaps back when going to the bank meant a free lollipop. These linked accounts are the simplest way to put away money and have access to it when you need it. Just make sure you’re not accidentally draining it by paying overdraft or ATM fees.
2. Online money market account (MMA). If you would like to make better interest on your money than what your savings account is offering, consider an online money market account. Online banks can pay a higher interest rate on savings because of a lack of overhead (you can check yields here). However, transferring money to your checking account can take 3 days and you may be limited to a certain number of debits per month, so it’s not the best place for a true emergency fund that could save your hide in a crisis.
3. Certificate of deposit (CD). A CD is a perfect option if you have cash you won’t need for a few years (like for a down payment) and want it to grow with very little risk. Bankrate reports that 3-year CDs are currently paying between 1.5 and 1.9 percent in interest, many with no minimum deposit. However, if you withdraw that money before the CD matures, you’ll pay a penalty that will cancel out whatever you’ve earned in interest.
4. 401(k) and 403(b) plans. These common retirement account is available through many employers: 401(k)s through companies and 403(b)s through nonprofit groups. If you get a company match or are looking to pay less in taxes, it is your best bet for saving for your golden years. You can deduct any money that you contribute to it and pay taxes when you withdraw it in retirement. Also, a company match is free money that your workplace is trying to put in your pocket, so take them up on that benefit!
5. Traditional and Roth individual retirement accounts (IRAs). A traditional IRA is similar to a 401(k) in that you can contribute pre-tax dollars to it (up to $5,000 per year). But you can open it yourself at a bank of your choosing in any year in which you earn income. If you are not offered a company match or you think there’s a chance taxes on retirees will be higher in the future than they are now, the Roth IRA is a better bet. You fund it with post-tax earnings so you do not get the tax savings now, but the money can grow and you won’t have to pay taxes on it again in the future. And remember: They earlier you start contributing, the more your money can grow.

Still undecided about how best to save? Check out our features on retirement savings and starting an emergency fund.

In the first survey of its kind, the Pew Internet Project found that 35 percent of all American adults own a smartphone. (As Mashable.com points out, that means more people have smartphones than college degrees in the United States.)

The study found that 59 percent of people in financially well-off households (defined as income above $75,000) are smartphone users, which was expectedly high. But more surprisingly, 39 percent of people ages 18 to 29 with household incomes below $30,000 also own smartphones. And survey respondents were far more likely to describe their devices as “necessary” than as “expensive.”

We hope that all smartphone users are judiciously budgeting for data plans, which can add $30 or more per month to their bills (and that’s beyond the cost of the phone and a voice plan). But it seems to us that there’s a confusion of “wants” and “needs” going on here for many people — a problem that all too often leads to a lifestyle that goes beyond a household’s means.

Smartphones are understandably fun and convenient, but by and large they are not a necessity. If you are considering buying one, consider not just the cost of the device but also how much you will pay to operate it over its lifetime. While $30 per month for a data plan may not sound like much, that’s $720 over the course of two years. Is being able to Facebook on the fly worth that much to you?