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Living On The Edge: Nearly Half Of U.S. Adults Lack Adequate Savings

A penny saved is a penny earned…but according to that adage, many U.S. adults are not earning all that much.

That’s because almost one-half of all U.S. adults (45 percent) say their household does not have enough money in liquid savings to cover at least three months of living expenses. Moreover, nearly one in ten adults (9 percent) say their household currently keeps no liquid savings, defined as any savings readily available as cash and not intended for long-term investment.

Among those earning less than 35,000, the numbers are more striking. Thirty percent of that group maintains no liquid savings. The new survey was conducted by Harris Interactive and commissioned by LexisNexis Martindale-Hubbell’s lawyers.com, the most comprehensive and trustworthy online resource for finding a lawyer.

“Three to six months’ worth of money saved for living expenses is the minimum every household should have, no matter its income,” said Alan Kopit, legal editor of lawyers.com. “Any less can leave people vulnerable to serious financial woes if they hit unexpected difficulties, like a job loss or medical problem.”

The most common reason adults who save say they do so is to have a “rainy day” fund for unexpected emergencies. Seventy-three percent cited that as their motivation.

Nearly one-in-three adults (29 percent) are saving for a vacation, the survey found. And 15 percent are doing so to fund a special event, such as a wedding or birthday party, although that number rises to 25 percent among females aged 18 to 34.

“There’s no wrong reason to save money, but it’s a good idea to think about the basics initially,” said Kopit. “First create a fund to cover living expenses if you’re left without income for period of time. Once you have that established, you can start putting away money with other things in mind, like a vacation or a new car purchase.”

Little Steps Can Add Up To Big Savings At The Pump

Everyone is looking for ways to reduce “gas pains” from high fuel costs. There are some easy things you can do to put yourself on the road to gas economy.

• Light on the Pedal-Ease on the accelerator when you start from a red light. Your car will run leaner and won’t use as much gas. On the highway, run about five miles under the posted speed limit to save.

• Crank the AC-It used to be true that not using the air-conditioning (AC) in warmer months would save on fuel economy. That’s not true anymore. With the aerodynamics of today’s vehicles, by turning off the AC the resistance created by the wind causes more drag on the vehicle when the windows are rolled down.

• Use the Right Fuel-Never use a higher octane gasoline than your engine needs. It’s like trying to put 16 ounces of fluid into a 12 ounce glass. Use the right octane and you can save about a dime or more per gallon at each fill-up.

• Keep Up the Pressure-Make sure you have the correct pressure in each of your tires. With too little air in the tires, the friction that it takes to roll the car is much greater, thus reducing fuel economy.

• Keep It Clean-Keep your engine clean of debris by changing its oil and fuel filter.

• Get It In Gear-Most modern transmissions are electronically operated by controllers. Transmission fluid that’s broken down may keep your car from going into its highest gear. Have the transmission fluid changed in the 36,000 to 50,000 mile range.

• Stir It Up-There are lots of different gadgets on the market that claim to increase fuel economy. In all of our testing, we have virtually found no improvement in anything, with one exception. It is a device called Tornado that’s put into the air intake, closest to the throttle plate, and stimulates the air to get it really turbulent. That causes a good fuel atomization within the engine itself that caused an increase in fuel economy in the applications we tested by an average of one to two miles per gallon.

With gas prices over 2 and approaching the 3 mark, if you can save one or two miles per gallon every time you fill up, that can translate to about 300 or 400 of savings per year under normal driving conditions. I think everybody’s interested in that.

Let Energy Savings Pay For Home Improvements Like Replacement Windows

In this day and age of ever-rising fuel costs, not having your home properly insulated is like throwing money out the window. Literally, in fact, as old, leaky windows are a prime source of residential heat loss. Replacement windows alone can make a dramatic difference, with energy savings of up to 40% in monthly fuel bills.

In this article I’ll explain why dual pane replacement windows and other energy-saving home improvements are like money in the bank. Contractors like to point out an almost 100% return on investment when installing more energy-efficient windows, and they are right.

The problem with windows is that glass has poor heat insulation properties. Old single pane windows are hardy better than no windows at all when it comes to heat loss. And even older dual pane windows develop leaky seals that lead to condensation and reduced thermal protection. Replacing that old glass with new Energy Star compliant windows reduces utility bills, provides better sealing to ward off pollen and other pollutants, insulates better against noise, and also drastically reduces the load on your heating and cooling system.

In addition, the replacement windows can be ordered with tempered and shatterproof glass for extra protection, tinted glass for privacy and additional insulation, and even color options for special effects. Further, the extra ultra violet protection provided by specially coated and reflective glass can keep your furniture and floors from fading. Sometimes existing frames can accommodate more efficient replacement windows. If the frames need to be replaced, you can select from high-quality vinyl that never cracks or peels, or sturdy, elegant aluminum. While you’re at it, you may consider replacing flat standard windows with bay or decorative windows or add other architectural touches and enhancements.

Windows, of course, are not the only way to save energy. Up to 40% of a home’s exterior is roofing, and properly installed roofs can reduce heating and cooling bills in a number of ways. Shingles may reflect heat instead of absorbing it. Proper ventilation removes heat in the summer and quickly cools down your home. And whole-house fans efficiently remove the heat accumulating in attics.

Siding is important as well. Exterior painting not only improves the appearance of a home, but it also seals cracks through which heat can escape. Materials like Hardi Plank fiber-reinforced concrete siding are more durable and weather-resistant than wood or vinyl, again contributing to good insulation.

Properly built sunrooms can provide warmth in the winter and, through venting at night, cooling in the summer. Covered patios can provide shade, again reducing the load on the air conditioning system. The same goes for certain types of pergolas that are both decorative and provide shade. Decks and terraces, too, can shield windows from the sun, perhaps with the addition of plants, while adding quality living space to a structure.

So, the next time you think of home improvement projects, don’t stop at replacement windows. Take it as an opportunity to make your home a more environmentally friendly place with lower heating and cooling bills. Improving the value of your home and saving money at the same time…who could argue with that?

Unfortunately your sex can make a huge difference to the amount of car insurance that you pay. Women drivers while having been the brunt of many jokes, particularity from male drivers, can in fact get cheaper car insurance than men.

Statistics have shown that women are indeed safer drivers than men, this is because women have been proven to make less claims than men do on their insurance. They also usually go for much less flashier cars than men choose, instead going for the more reserved and what is classed as the safer car.

There are many online companies now taking advantage of this fact and as such are offering deals specifically aimed at the women driver. Lady drivers can now search online for companies aimed at them and by doing so they can make huge savings on the amount of premiums they pay for car insurance.

However, there are other factors that determine how cheap you get your car insurance, regardless of your sex. The best, cheapest and quickest way to look for your car insurance is by doing so online. By looking online for your car insurance you are able to get instant quotes from many companies which ensures that you choose the cheapest deal possible.

Policy features and benefits and the cost of car insurance does vary from company to company and all policies have exclusions hidden within them so it is essential that you understand just what is included in the quote.

Other factors which are taken into account include the area in which you live. Depending on your postcode you can be charged a higher premium for your car insurance. While there isn’t much you can do to change this you can make sure you have the best security features installed on your car, by doing so you can help to reduce the premium.

Most parents want to pay for their childrens college education, or at the very least help pay for college. While it would be great for your children to be able to start like after college without student loans to pay off, the cost to parents may be too high.

The average annual cost of a 4-year public college is 12,127 (source: The College Boards Annual Survey of Colleges, 2005-2006), with 4-year private schools averaging 29,026 a year. College costs have been outpacing inflation by rising over 5% per year.

On the other hand, saving for retirement has become even more important as companies have started freezing or eliminating pension plans, and the future of Social Security continues to be uncertain.

Paying for both college and retirement will be challenging for most parents. Here are some suggestions to help you to achieve both goals:

Have a plan. You should determine how much you will need for retirement and how much you anticipate your children will need for college.

Start saving as soon as possible. Time is your greatest ally, whatever your savings goal. Figure out how much you are able to save each month, and setup an automatic plan as soon as possible.

Prioritize if you cant afford to save for both goals, retirement should take priority over saving for college. Your children can always borrow for college or earn scholarships; you can not borrow money for retirement.

Save for both. Ideally, youd like to be able to save for both goals at the same time. If youre able to, allocate money to both goals. You may wish to visit with a financial planner to determine how much should be allocated to each goal.

Research there are several different types of college savings accounts available. Find out which type of account will benefit you the most before you invest.

Use retirement accounts to save for retirement and college. Retirement accounts can be tapped into to help pay college bills (IRA withdrawals can be taken penalty free for college expenses; Roth IRA contributions can be taken penalty and tax-free). However, you should only do this if it will not sacrifice your retirement savings.

The bottom line to getting the most out of your savings – prioritize your savings goals, have a plan in place, and start early.

As anyone who has a motor car knows, car insurance can be expensive. However there are many ways in which you can save money when it comes purchasing for the first time or renewing your car insurance. Here are some simple ways that you can make some small and some substantial savings.

The premium you pay for your car insurance can vary a lot from company to company so it is in your best interests to shop around. You can do this yourself by trawling the internet or get a specialist broker to do it for you.

Work out what type of insurance you want, be it third party, fire and theft cover or fully comprehensive. If your car is an older model, for instance, then consider just taking third party, fire and theft car insurance.

Once you have determined the level of cover that you need, then get at least three separate quotes from different companies.

Getting a quote online will vary from company to company and you do need to compare quotes on a like-for-like basis.

One great way to lower your premiums is to offer to pay more for the voluntary excess you would pay if you were to make a claim. By doing this you can make savings.

If you choose to go with an insurance company that does home cover, sometimes if you take your household insurance cover along with your car insurance then you can make noticeable savings.

Finally, if you have taken advanced driving lessons or have no claims bonus for a number of years then it is worthwhile asking about any special considerations you might be entitled to receiving. While the majority of insurers ask about things such as this when filling in an enquiry regarding car insurance, it is also worthwhile mentioning if they don’t.

How to Get the Most Savings from Student Loan Consolidating

The goal of student loan consolidating is to improve your overall financial picture; whether that means lowering monthly payments, improving a credit score, or reducing debt to income ratio. Student loan consolidating packages offer some of the best money-saving incentives in the loan industry. Understanding how these different incentives affect your repayment can help you to make a smart choice when it comes to student loan consolidating.

The Effect of Interest Rate on Student Loan Consolidating

This tiny little number has the largest overall financial impact in regard to the total amount you will spend to repay your student loan. Even a fraction of a percentage point can equate to thousands of pounds over the lifetime of a loan.

Advertised base interest rates for student loan consolidating are similar from one company to the next. Your due diligence in shopping for a lender to handle your student loan consolidating will truly pay off when you begin to compare interest rate reduction opportunities.

Interest Rate Reductions

Interest rate reductions are money saving incentives offered by companies that specialize in student loan consolidating. Not every lender offers interest rate reductions, and those who do offer a broad range of percentage savings. With a little research, you can find lenders offering total interest rate reductions of up to 1.5%.

On Time Payments Interest Rate Reduction
If youre planning on making your payments on time anyway, why not be rewarded? Some lenders offer interest rate reductions just for making on-time payments. Some lenders such as ScholarPoint offer a reduction of up to one full percentage point after only 24 months of on-time payments.

Be conscious of the number of months the lender requires before qualifying for this discount. A reduction applied after 36 months into your loan as opposed to 24 months means you’ll be paying higher rates than necessary for one full year.

Auto Pay Interest Rate Reduction
Because payments made on time are so important, some lenders will reward you with an interest rate reduction simply for having your payments automatically deducted from your account each month.

Many lenders and government programs offer reductions at a rate of 0.25%. However, with a little research, you can find auto-pay interest rate reductions of up to a full 0.5%. For the borrower, this is a triple win. It means less paperwork, no worries about late payments, and a significant amount of savings over the course of the loan period.

Principal Reductions

A principal reduction is when the lender handling your student loan consolidating subtracts a fixed percentage off of your loan balance. Each lender offers different guidelines for qualifying for their principal reduction benefit. The most common incentive offered is for completing a set number of consecutive on-time payments.

Principal reductions differ from interest rate reductions in that the savings is applied to the remaining balance on your loan but does not affect the interest rate at which you will pay off the balance. While principal reductions may initially seem like a larger savings, you could pay more than if you had chosen a lender offering a seemingly small interest rate reduction.

Cash Back Programs

Cash back programs are exactly as they sound. After a certain number of consecutive on-time repayments, usually 33 months, some student loan consolidating companies will return up to 1% of your original loan and credit this to your remaining balance.

When a cash back incentive is applied, money is actually deducted from the remaining balance after meeting the guidelines of your student loan consolidating lender. For example, after qualifying for a 1% cash back incentive on your 30,000 loan, your current balance would be reduced by 300.

Choosing a Company to Handle your Student Loan Consolidating

Many of the incentives offered are rewards for favorable repayment behavior and are presented through different types of savings packages. Using a Student Loan Consolidating Calculator online can help you calculate the potential savings of your options.

By comparing the options and savings incentives of different student loan consolidating lenders before making a decision you can save thousands of pounds over the course of your repayment term.

Concerned about the high cost of healthcare? Worried that your insurance doesnt cover all your costs? Fortunately, a partial solution may be just around the corner. Since January 2004, taxpayers have had a tax savings tool called Health Savings Accounts, or HSAs. These HSAs may solve many of your healthcare cost problems.

How an HSA Works

In a nutshell, HSAs work like this. You buy a specific type of major medical, or catastrophic coverage, insurance called a High Deductible Health Plan. (This special HSA-compatible insurance is also known by the acronym HDHP.) Then, you annually contribute up to roughly 5,100 for a family and up to 2,600 for an individual–to a special health savings account. (Note that slightly higher deductions are available to taxpayers over the age of 55. Also, annual deductions are indexed for inflation.)

How You Save Taxes with HSAs

HSAs work because you get a tax deduction for the money you contribute to the health savings account. However, as long you spend the money in the account for eligible healthcare expensespretty much anything reasonableyou aren’t taxed when you withdraw the money. Note that HSAs deductions are not limited by taxpayer incomes.

In effect, the HSA makes all or most of your uncovered healthcare expenses fully deductible. This is a big deal because for most people, healthcare expenses are not deductible.

Just to put the value of an HSA into perspective, a family can save from 500 to as much as 1750 annually in income taxes by using one of these accounts. The final savings, predictably, depend on family income and the state where the family lives.

One other thing. Dont confuse HSAs with the old style Flexible Spending Accounts, or FSAs. With FSAs, you lost the money you didnt spend by the end of the year. With HSAs, you dont lose the money. The unused balance just carries forward to the next year.

Arent Medical Expenses a Tax Deduction Anyway?

No, not really. For most people medical expenses are not a tax deduction. Heres why. Healthcare expenses do count as an itemized deduction for people who dont use the standard deduction. However, only the portions of ones healthcare costs that exceed 7.5% of adjusted gross income get deducted. That means that most people never get to use their healthcare costs as tax deductions because their healthcare costs dont cross the 7.5% threshold.

Another Benefit: HSAs May Also Save Premiums

HSAs sometimes produce another economic benefit. The HDHP insurance itself may save people money because they buy less insurance. This is especially true for people who arent already using major medical insurance.

How to Set Up a Health Savings Account

HSA accounts aren’t difficult to set up. Essentially, you do just two things. (1) Get medical insurance that qualifies as an HDHP, and (2) Open an HSA account with a bank that offers HSAs. Your current medical insurance provider is a good place to start your search for HDHP insurance. You can also check with your states Blue Cross or Blue Shield insurer.

Three Warnings about HSAs

For what it’s worth, I am now using an HSA myself. (I got my HDHP from Premera Blue Cross and use an HSA account from HSA Bank.) But let me also share three caveats: First, obviously, you never want to cancel one insurance policy until you’re sure you have a replacement policy. Second, you do need to be careful about the fees associated with the HSA “bank account,” so shop around. Third, if you withdraw money from an HSA for something other than a valid medical expense, the withdrawal is taxable and subject to a 10% penalty.

Concerned about the high cost of healthcare? Worried that your insurance doesnt cover all your costs? Fortunately, a partial solution may be just around the corner. Since January 2004, taxpayers have had a tax savings tool called Health Savings Accounts, or HSAs. These HSAs may solve many of your healthcare cost problems.

How an HSA Works

In a nutshell, HSAs work like this. You buy a specific type of major medical, or catastrophic coverage, insurance called a High Deductible Health Plan. (This special HSA-compatible insurance is also known by the acronym HDHP.) Then, you annually contribute up to roughly 5,100 for a family and up to 2,600 for an individual–to a special health savings account. (Note that slightly higher deductions are available to taxpayers over the age of 55. Also, annual deductions are indexed for inflation.)

How You Save Taxes with HSAs

HSAs work because you get a tax deduction for the money you contribute to the health savings account. However, as long you spend the money in the account for eligible healthcare expensespretty much anything reasonableyou aren’t taxed when you withdraw the money. Note that HSAs deductions are not limited by taxpayer incomes.

In effect, the HSA makes all or most of your uncovered healthcare expenses fully deductible. This is a big deal because for most people, healthcare expenses are not deductible.

Just to put the value of an HSA into perspective, a family can save from 500 to as much as 1750 annually in income taxes by using one of these accounts. The final savings, predictably, depend on family income and the state where the family lives.

One other thing. Dont confuse HSAs with the old style Flexible Spending Accounts, or FSAs. With FSAs, you lost the money you didnt spend by the end of the year. With HSAs, you dont lose the money. The unused balance just carries forward to the next year.

Arent Medical Expenses a Tax Deduction Anyway?

No, not really. For most people medical expenses are not a tax deduction. Heres why. Healthcare expenses do count as an itemized deduction for people who dont use the standard deduction. However, only the portions of ones healthcare costs that exceed 7.5% of adjusted gross income get deducted. That means that most people never get to use their healthcare costs as tax deductions because their healthcare costs dont cross the 7.5% threshold.

Another Benefit: HSAs May Also Save Premiums

HSAs sometimes produce another economic benefit. The HDHP insurance itself may save people money because they buy less insurance. This is especially true for people who arent already using major medical insurance.

How to Set Up a Health Savings Account

HSA accounts aren’t difficult to set up. Essentially, you do just two things. (1) Get medical insurance that qualifies as an HDHP, and (2) Open an HSA account with a bank that offers HSAs. Your current medical insurance provider is a good place to start your search for HDHP insurance. You can also check with your states Blue Cross or Blue Shield insurer.

Three Warnings about HSAs

For what it’s worth, I am now using an HSA myself. (I got my HDHP from Premera Blue Cross and use an HSA account from HSA Bank.) But let me also share three caveats: First, obviously, you never want to cancel one insurance policy until you’re sure you have a replacement policy. Second, you do need to be careful about the fees associated with the HSA “bank account,” so shop around. Third, if you withdraw money from an HSA for something other than a valid medical expense, the withdrawal is taxable and subject to a 10% penalty.

Every penny counts. This is the reason why I am cautious where to spend it. We need to be a spend-thrift, not simply because it is wise but because it is a must.
I am into postcards and every once in a while I am tasked to take charge of the whole process – from the conceptualization up to printing. If you are to see it in a packaging it may seem a pretty taxing process. In fact, the entire thing takes a lot of effort and money. Nonetheless, it may also be on the contrary.

Printing rate is a big factor that you need to consider in dealing with postcards. Many postcard designs are ‘ganged’ in order to save on both money and time. Ganging print dramatically slashes the price of each printing job at a faster printing process. Basically, that is hitting two birds at the same time.

Ganging print goes like this, if you are going to print 12 different postcard designs on different sheets, in ganging it will be run through the press just once. By now, you can see the effect.

Another consideration that can help you is to find a commercial printer that gives a good postcard printing deal. There are available discount postcard printing deals in the business these days. Grab the opportunity to save more.

In connection to mailing postcards, postage rate can be pretty affordable. In fact, first class mail is only 23 cents. If you are to compare it with mailing letters, it is 14 cents lower. However, if you are choosing mailing some requirements must be met by your postcards. One of the requirements is the final trim size of 5 to 6 inches in length and 1-12 to 4-14 inches in height. This postcard rate includes double postcards that have reply cards.

If you opt to make postcards online, you can use ready-made templates to save time. There are thousands of them online. All you have to do is download them. By that process, designing will be made easy and will not eat your time.

To make it even easier, you can upload your own mailing list from several file formats. Check this mailing list against your official post office records. Change any errors to preclude you from spending further on invalid addresses. Finally, save your mailing list for future use.