A Dollar Saved is Two Dollars Earned but Two Dollars Earned is Twenty Dollars Saved

by David@MoneyNing.com · 18 comments

earning money

Once in a while in personal finance literature, we will come across an article about the advantages of saving money.  The phrase “a dollar saved is two dollars earned” or something similar often comes up since it’s so catchy.  After all, the savings are after taxes, and it’s always about how much you can keep and not about how much you earn right?

While many of those articles are true that savings is certainly very important, I feel that it underplays the importance of earning money.  People seem to forget that in order to save, we need to earn the money first.

Earning money is about giving us choices.  With money earned, we have freedom.  We could spend it if we really like, but if we care about our future, we should save it.  Saving a dollar is probably equivalent to earning two dollars, but if we don’t earn it, where is that dollar coming from?

We look for all the ways to save money.  We spend so much of our time to read about how to save money and actually doing those things to save a few dollars.   We, however, seldom read about how we can earn more money and spend even less time actually trying.

Let me tell you that spending a few hours a week extra to earn more money will give us so much.  It will enable us to choose between keeping the money and spending it.  It will give us freedom and confidence that we probably will do better at our primary jobs, snowballing this positive cycle to an even higher income.

Earnings and income are also cyclical in nature.  Once we spending the time to earn more dollars, it usually means we will periodically receive more.  For example, if we start a part time job and earn another $500 a month, we will get the same $500 extra each and every month.  Saving money on the other hand is a one-time event.  If we spend the time to save ourselves $500 dollars, we will need to spend more time to save another $500.  That’s why while a dollar saved is two dollars earned, two dollars earned is twenty dollars or more saved.

Setup Google Alerts to Get Coupons and Deals

by David@MoneyNing.com · 15 comments


My colleague has been using Google Alerts for a long time to get company related news from around the web. This neat little utility checks the web for any new articles that Google finds on search terms she provides. For example, she can put in a search term for “MoneyNing”, and Google Alerts will send her an email every day if someone mentioned this site anywhere on the web.

A couple days ago, she started noticing that Google Alerts also finds all the blogs and websites that searches for coupons or deals and sends her the information as long as it matches the search terms she puts in. After checking out the link which contained the coupon, she probably struck gold because this would mean that instead of always looking for a coupon from a certain company, she can just setup Google Alerts to track that company and wait for Google to find the coupon.

By having the coupons pushed to her instead of spending time to find it, she can take advantage of the coupons much more effectively. With gas prices so high, I’m sure everybody can appreciate as much savings as they could find.

What I plan to do is setup Google Alerts to see if I get any coupons or deals. I suggest you do the same because you might be able to save yourself some time and money.

Credit Scams: Part 2 – Different Credit Repair Scams and False Claims

by Guest Contributor · 6 comments

This is part two of two part guest post from Debt Lead, who has a debt consolidation website by Kimberly Credit Counseling.  If you’ve missed part one on credit reports, click here.

The credit repair scam artists can never deliver what they promised. Only a deliberate effort for a very long time and a plan to repay your bills will improve your credit record. This section is designed to help you understand the two top credit repair scams that are circulating newspapers, television, magazines and radio.

Credit Repair Scam #1 – File Segregation
If you filed for bankruptcy, you may be the target of a credit repair scam called “file segregation.” In this scam, you are promised a chance to hide unfavorable credit information by establishing a new credit identity. That may sound like a good idea, but file segregation is illegal. If you use it, you could face fines or even a prison sentence.

Credit Repair Scam #2 – New Credit Identity
Those that have filed for bankruptcy before may receive a letter from a credit repair company warning you about the inability to obtain credit cards, personal loans, or any other types of credit for 10 years. For a fee, the company promises to help you hide your bankruptcy and establish a new credit identity to use when you apply for credit. These companies also make pitches in classified ads, radio, TV, and the Internet.

When signing up for the service you will be required to pay a fee and may be directed to apply for an Employer Identification Number, commonly referred to as an EIN, from the Internal Revenue Service (IRS). Typically, an EIN is quite similar to a social security number and is used by businesses to report financial information to the IRS and the Social Security Administration.

After you receive your EIN, the credit repair service will tell you to use it in place of your social security number when you apply for credit, inform you to use a new mailing address and obtain additional credit references.

That may sound like a good idea but, using false information is illegal and considered fraud. If you use it, you could face fines or even jail time.

If these aren’t enough for you to steer clear of these credit repair companies, then read on about their false claims.

Credit Repair False Claim #1: You will not be able to get credit for 10 years.
Each creditor has its own criteria for granting credit. While one may reject your application because of bankruptcy, another may grant you credit. Given a new reliable payment record, your chances of establishing additional credit could probably increase as time passes.

Credit Repair False Claim #2: The company or “file segregation” program is affiliated with the federal government.
The federal government does not support or work with companies that offer such programs.

Credit Repair False Claim #3: The “file segregation” program is legal.
It is a federal crime to make any false statements on a loan or credit application. It is a federal crime to misrepresent your Social Security number. It also is a federal crime to obtain an EIN from the IRS under false pretenses. Further more, you could be charged with mail or wire fraud if you use the mail or the telephone to apply for credit and provide false information. Worse yet, file segregation likely would constitute civil fraud under many state laws.

Not all is bad. Know your rights under The Credit Repair Organizations Act which prohibits false claims about credit repair and makes it illegal for these companies to charge you until they have performed their services. It requires that companies tell you about your legal rights.  Credit repair companies must provide this in a written contract that also spells out just what services are to be performed, how long it will take to achieve results, the total cost, and any guarantees that are offered. Under the law, these contracts also must explain that consumers have three days to cancel at no charge.

Credit Scams: Part 1 – Credit Reports

by Guest Contributor · 6 comments

This is part one of a two part guest post from Debt Lead, who has a debt consolidation website by Kimberly Credit Counseling.

Newspapers, radio, TV and the Internet are filled with advertisements that offer to erase accurate negative information in your credit file. The credit repair scam artists who run these ads can’t deliver. Only time, a deliberate effort, and a plan to repay your bills will improve your credit history record. Part 1 is to help you understand credit reports so you can be an informed consumer, while part 2 looks at credit repair scams.

Credit Reports

Does your credit report accurately represent you? A recent study conducted by the Public Interest Research Group (PIRG) found over 70% of credit reports contain errors. Among the principal findings of the report were the following:

  • Twenty-nine percent (29%) of the credit reports contained serious errors that could result in the denial of credit.”
  • “Serious” errors included false delinquencies, public records or judgments that belonged to a stranger, or credit accounts that did not belong to the consumer
  • Seventy percent (70%) of the credit reports contained mistakes or errors of some kind, also including the following:
  • Forty-one percent (41%) of the credit reports contained incorrect personal demographic identifying information
  • Twenty percent (20%) of the credit reports were missing major credit cards, loans, mortgages, or other accounts that are critical to demonstrating consumer credit worthiness.

One of the first steps to credit repair is to understand credit reports. When applying for mortgages, home loans and refinances, one of the most important factors in determining whether or not you will be approved is your credit. This is true for other important factors as well, such as obtaining lower interest rate auto loans and credit cards so it is extremely important to have good credit.

If you have had credit issues in the past, or are currently in a situation that will affect your credit, be prepared to address these issues upfront when applying for a loan.

The mortgage industry has its own language when it comes to your credit report. Mortgage lenders get their name from the grading system they use. Items that determine your credit rating (A+ to D-) are payment history, amount of debt payments, bankruptcies, equity positions, and credit scores. Credit scores are also known as “FICO” scores, and are used by the mortgage industry to determine credit risk. The higher the credit score, the better the credit risks.

FICO stands for Fair Isaac Company, the company that created the original scoring system. Each credit bureau has its own unique system that allows them to offer a score based solely on the contents of the credit bureau’s data about an individual. A numerical score at one bureau is the equivalent of the same numerical score of another. For example, a score of 700 from Experian indicates the same creditworthiness as a score of 700 from Trans Union or Equifax. However, the calculations used to determine these scores are different for each bureau.

FICO scores range from 375 to 900 points. A score of 650 or above indicates a very good credit history. However, lenders do not necessarily give the same value to a particular credit score, and they do not necessarily use credit scoring.

FICO scoring places a value on the types of accounts you hold, as well as your credit history. The formula that determines your scores, however, is not disclosed to the consumer.

The 5 most important factors to determining your credit score are:

  • Your payment history
  • The amount of outstanding debt you have compared to your credit limit
  • Your credit history
  • The types of credit you use
  • Negative information

Remember, FICO scores range from 375 to 900 points. A score of 650 or above indicates a very good credit history.

Spend Less Money with Patience

by David@MoneyNing.com · 6 comments

Once in a while, we read an article that asks us to sell what we don’t need. The benefits are obvious because we can get some cash for the items that are otherwise sitting in our house and taking up space. While this is great advice, perhaps an even better one is for us to stop buying anything that we don’t need in the first place.

Now, I know how hard this is as I’m a victim of impulse buying too. We tell ourselves how much we really need that particular item and eventually we end up taking it home. So for those having difficulty controlling themselves, try these two tactics.

Setup a Buy Period of the Month
When I really want something, I will tell myself over and over again why I want to take the item home and why owning it is so important. I will go to a store and look at the actual merchandise, and I will end up really wanting to pull my credit card out. Therefore, I’ve created a rule for myself where I’m only able to buy things over $75 on the first 7 days of the month.

I was amazed at how effective this strategy is because once I let the decision sit for a few weeks, the urge to spend subsides. What’s even more amazing is now that I know I can only buy in the first 7 days, I can usually get through the wait period even if I wanted something during the first 7 days to give myself more time to think about the decision.

Buy On Sale or with Coupons Only
Some items are on sale constantly while others can be bought at a store that always issues coupons. Whenever I want to buy something that I know can be bought at a cheaper cost than what’s listed, I tell myself to wait until I see a coupon or sale from the store that carries the product. As with the beginning of the month rule, the idea is for me to wait. Once I wait a few weeks, I usually don’t want to buy it anymore. If I still end up making the purchase, it is much more likely that I will actually put whatever I’m buying in good use.

As you can probably tell, both these tactics help because they require me to wait. Once I can last a few weeks without the item I want to buy, the time I spent dreaming about ownership lessens and my desire for buying it decreases. This gives me much more time to determine whether it’s a real need or just a want, and the end result is that I keep more of my hard earned money.

The Truth About Credit Repair

by Guest Contributor · 10 comments

This is a guest post from Debt Lead, who has a debt consolidation website by Kimberly Credit Counseling.

Have you ever heard this before: “Credit Problems? No Problem.” “Your Bad Credit Erased…100% Guaranteed”?

Beware if you have ever read this type of advertisement. There are numerous companies throughout the United States that claim they can “fix” your credit reports for a fee. However, they do little and sometimes nothing in most cases to fix your credit reports. What ends up happening is these companies take your money and disappear with it and you’re left with the same “bad credit” and even less money. Many companies also claim that they can create a new credit file for you by getting you a “new” Social Security number. This is illegal and never actually works.

Your credit history is maintained by companies called credit bureaus. These are private companies that collect information reported to them by mortgage companies, banks, department stores and other creditors. These bureaus can legally report any accurate negative information for 7 years and bankruptcy information for 10 years. Any accurate negative items that are within the 7 (or 10) year reporting period cannot be erased from your report by anyone. This is true even for companies that advertise claiming they are able to “repair your credit”.

Time is the only way to heal your credit report. By making consecutive payments when they are due, you will be able to show a more positive rating on your report, but your negative marks will not be removed.

Steps to Check Your Credit
You are entitled by law to see any information that the credit bureaus have on file about you. To find out what is listed on your credit report, you can follow these simple steps:

  • Contact the local credit bureaus.
  • Obtain a copy of your credit report. There may be a small fee if you haven’t been denied credit within the last 30 days, during which time it is free.
  • You can visit the credit bureau office to review your credit report in person.
  • Look over the report and check for mistakes.

If you do not understand something, you can ask. By law, the credit bureaus are required to explain your report to you. If a mistake is found, notify the credit bureau of the mistake and provide them with as much information regarding that problem. A reinvestigation will be done to dispute the information (if legitimately incorrect) and all necessary corrections needed will be made. A corrected copy of your report should be sent to anyone who has received the incorrect version within the past 6 months.

Are You A Victim?
If you have ever encountered a serious problem with a credit repair company, you CAN report them. You can contact your local consumer affairs office or your state attorney general. Check with your local directory assistance to see if a toll-free number is available.

You can also contact the Federal Trade Commission (FTC) to report any situations. Although the Commission cannot rectify individual credit problems for the consumer, it can act against a company if they see a pattern of possible law violations. If you feel a company has engaged in credit fraud you can send complaints to:

Correspondence Branch
Federal Trade Commissions
Washington, DC 20580

Lastly, here’s one common myth about your credits that everyone asks so let’s clear this up right here.
Myth
Credit Clinics and/or Credit Repair Services can “clean up” your credit report.

Fact
No one can legally remove accurate information from a credit report. However, you can request a reinvestigation on any of the information in your file that you dispute as inaccurate or incomplete.

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