Happy Friday. It looks like most of the brutal heat and humidity has subsided somewhat across the country, so that means more of you are likely able to actually enjoy the outdoors this weekend. I know around here at least it’s been a huge improvement. Instead of being 95 degrees and incredibly humid it’s now in the 80s and not nearly as humid. It’s really nice to just be able to open the windows again and let some fresh air in!

In case you missed it, a few weeks ago I released my free Invest Like a Pro eBook. There’s still time to get your hands on a copy, so go check it out! And don’t forget that you can follow me on Twitter and Facebook where you can get additional updates, ask me questions, or otherwise just chit-chat. I love being able to interact with readers so be sure to add me to your social networks.

Finally, I’ll leave you with a picture of my daughter getting a head-start on her financial education. I was trying to stick to just learning how to count, but she keeps reaching for the heavy reading! And I don’t know if I ever officially mentioned it here or not, but we are expecting a son in just under two months now, so I’ll have my hands full this fall. Good thing I now work from home!

Daddy, will you read the article about Europe’s debt woes to me?

What Is Better from a Tax Perspective: A Roth IRA or a 401k? – By now most people know the general differences between pre- and post-tax retirement accounts, but which one is really better from a tax standpoint? It isn’t as simple as just saying the Roth IRA is better because it’s tax-free. Here is a more detailed look.

5 Good Reasons Buying a House Requires Planning – Planning is key if you don’t want to get burned when buying a house. Just ask me. We’ve bought two houses in just six years and the first one was rushed. Because of that we ended up in a house that didn’t meet our needs, didn’t hold its value, and we were left paying the consequences. So, here’s how to plan for your next home purchase.

A Primer on Bonds – II (Investing in Bonds) – For whatever reason, bonds just don’t get much attention. They obviously aren’t as exciting as stocks, but they are valuable components of any successful portfolio so it pays to understand what they are, how they work, and what role they should play in your portfolio.

Save Money on Razor Blades – Any guy who shaves regularly knows how expensive buying new razor blades can be. I actually stopped shaving completely and grew a full beard earlier this year but I found out it was just as much, if not more work than shaving regularly. You had to shampoo it, groom it, trim it, and took even more time than a quick shave. There’s just no escaping it, but at least you can save a few bucks on blades now.

A Frugal Daughter’s Guide to Back to School Shopping – It’s that time of year again, and the kids are soon back to school. That means parents everywhere will be spending a good deal of money on new clothes, school supplies, and much more. Here’s a frugal back to school shopping guide to ease the pain.

A Closer Look at a Lending Club Default – I’ve been a big fan of Lending Club and over the past few years now I haven’t had a single loan default and my rate of return is a little over 12 percent. It’s hard to beat that. But anyway, here is a closer look at Lending Club’s default rates.

Get Out of Business Liquidation Sales: Not A True Bargain – It seems like a business that’s liquidating all their assets when they go out of business will mean you can get all sorts of great stuff for pennies on the dollar, right? Not so fast. A lot of these sales aren’t much of a bargain after all.

What to Invest When You Are Young – Investment needs change as we age, and most of us today have a pretty good idea of what we need to be investing in. But what about the young people? Those just setting out, making money for the first time, and with decades of investing ahead of them? Here’s a good start.

How to Recover From a Lost Wallet – If you’ve ever lost your wallet you know how helpless you can feel. We keep so many important in our wallets, not to mention money, that when it’s lost or stolen we don’t even know where to start. Here’s your lost wallet recovery plan to get you back on track as soon as possible.

The Top Ten Cities for Young Professionals – Some cities are better than others. That’s just the way it is. But different cities are better for different things. For young professionals it’s all about finding a great job, great people, and an active social scene. Here are some of the best cities in the country for upcoming young professionals.

HSA Contribution Limits: Health Savings Account Rules – I’ve written about HSAs a few times, but never really dug deep into the contribution limits or other rules surrounding them. Here’s a good starting point that covers all the important details.

Are Debt Consolidation Companies Your Friend? – Consolidating debt sounds like a good idea, right? After all, you can turn many payments into one, get a better rate, and pay off your debt even faster. But is it really that easy? Here’s some information you may want to check out before calling up that debt consolidation company.

Are You Aware of the Most Common Credit Threats? – We all know failing to make a credit card payment is bad news for our credit score, but what are the other common credit mistakes? Here’s a list of things you absolutely must avoid if you want to maintain a good credit score.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Friday Finance Findings for July 30th

Can you believe what mortgage rates are these days? As of this post Bankrate shows a 30-year fixed at around 4.6% and a 15-year down to almost 4%. That’s pretty amazing when you think about what rates were just five years ago. Back then you were probably looking at rates closer to 7%. So, all this mortgage rate talk in the news has a lot of people thinking about refinancing their mortgage. I just wrote about that yesterday and made an argument that even though rates may be much lower today than your current rate it still might not be beneficial to refinance.

I know firsthand. We are stuck with two mortgages right now and it doesn’t make much sense to refinance either one. On our old house that we’re trying to sell we’re paying 6.75%. That sucks, and while a lower rate would certainly trim some money from the monthly payment, the few thousand we’d be paying up-front to do the refinance and/or the points we’d initially be paying would be a waste if the house does sell inside of a couple years before we break even. So, it’s a bit of a gamble. If it takes a long time for the house to sell, we may still come out ahead. If the house sells in the coming months we could lose out on some money.

Then we have our current house which was purchased less than a year ago. Rates were pretty good last year and we got this one for 5.25%. Even though it’s good, I’d love to be paying 70 fewer basis points to be sure. Even if we were able to get one of the lowest rates the savings would only be about $50-60/month, which stretches out the break even point pretty far. But there’s a good chance the numbers wouldn’t work out to show enough equity for a traditional refinance anyway given the wonderful Michigan real estate market.

So, I get to sit on the sidelines while people are taking advantage of these record low rates. What about you? Are these low rates getting you to think about refinancing, or have you already?

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Poll: Are You Thinking About Refinancing Your Mortgage?

Record Low Mortgage Rates Make Refinancing Attractive

Mortgage rates continue to fall to almost unheard of levels. We’re talking about 30-year fixed rate mortgages hovering under 5%, and 15-year rates at just 4%. These rates are sharply lower than just a few years ago. But just how much can you save with a lower mortgage rate? Surprisingly, the savings can be quite substantial.

Let’s look at a $200,000 30-year fixed-rate mortgage. At 7% your monthly payment would be about $1,330 a month, less any PMI, escrow, etc. Now, take the same loan at 4.5% and the monthly payment drops to around $1,013. That’s more than $300 less each month. I don’t know about you, but I wouldn’t mind having an extra $300 in my pocket each month. And when you look at the total savings over the life of the loan, the 4.5% rate will save you over $95,000 in interest. It’s no wonder people are looking to buy a house or trying to refinance right now, but is it worth it?

Tighter Lending Limiting Loans

Even though rates are low, it’s more difficult to get a loan or to refinance today. Banks have changed their lending standards and it takes very good credit to get the best rates. A few years ago almost anyone could get a decent rate. If you bought a home with good, but not great credit a few years ago, you may actually find that the rate you can get today is not much better than your current rate. In some cases, you may be unable to get a loan or refinance at all.

There are also new fees being introduced to help lenders deal with risk. New risk-based pricing from Freddie Mac and Fannie Mae adds fees to mortgages based on a borrower’s credit score. In order to avoid the extra fees, borrowers need to have a FICO score of 740 or higher. While a score in the 700s is historically pretty good, you can now find yourself on the hook for added fees even with a 700-something score.

You Need Equity

Bad news for those of you in the more depressed housing markets. In order to refinance you usually need to have some equity in your home. A traditional refinance will allow you to refinance up to 80% of the home’s value. Well, if your $300,000 home you bought a few years ago is only worth $250,000 now and you still owe the bank $225,000 you very well may be out of luck. One exception is the Making Home Affordable plan, which can allow some refinancing on certain loans for certain people to be done without equity, but not everyone will qualify.

Thinking About Points

A lot of people think about paying mortgage points as a bad thing, but that isn’t always the case. The trend has been for lenders to require higher points for rates these days than a few years ago as they are looking for more money up front. Since points are essentially prepaid interest, this puts more money in the bank’s pocket early on. In some cases, paying points can result in a better deal, while some situations may end up costing the borrower money. Generally, the longer you plan on staying in the home, the more attractive it would be to pay points.

Julian Hebron, vice president and mortgage consultant at RPM Mortgage in San Francisco says  that paying points gets borrowers a bigger discount these days:

Historically, one point in fee gets borrower a rate that’s about 0.25% to 0.375% lower. Now one point gets the rate about 0.625% to 0.875% lower.

Recently, you could get a $417,000, 30-year fixed-rate mortgage at a rate of 5.625%, paying zero points. By paying one point (or $4,170) on the same loan, the rate went down to 4.875%, saving the borrower $261 per month in interest cost.

At this monthly savings rate, it takes 16 months to pay back the $4,170 and everything from that point forward is a benefit to you. Traditional breakeven periods are usually double this length of time.

Other Fees and Costs

Aside from paying points and possibly paying a higher rate because of your credit score, you still have all the other costs to contend with. It costs money to prepare a loan, and the underwriting and origination costs can easily be a few hundred dollars. You’ll also need an appraisal, which can again cost a few hundred dollars.

When you factor in all the costs associated with closing on a new mortgage or even a refinance, you can often expect to pay at least 3% of the loan amount in fees. This is especially important when you’re thinking about a refinance as the costs may outweigh the benefit of a lower rate in some cases. When you consider a $200,000 laon may end up costing $5,000  in total to refinance, what’s the breakeven point? If you’re saving $200/month by refinancing, it may take you nearly three years to make it worthwhile financially.

This is an important consideration if you’re unsure just how long you’re going to stay in the home. If the future is uncertain and you may be looking to move in a few years you could end up spending more to refinance than what you actually save. Also, remember that if you’re refinancing for the same loan term you’re resetting the clock. If you had ten years into your existing mortgage and then refinance into another 30-year loan you now have another 30 years before the loan is paid off instead of just 20.

A Lot of Things to Consider

As you can see, just because we keep hearing about how low the mortgage rates are these days, it isn’t always as easy as going to your bank and getting a new loan. With banks limiting these rates to those with the highest credit, regular people with average credit may not be able to find a loan or refinance for anything near what’s being discussed in the news.

In addition, if your future is uncertain and you may need to move in the next few years, the added points  and/or fees required to get the low rate or the fees associated with a refinance may actually cost you more money if you ended up not staying in the house as long as you expected.

So, if you’re considering the purchase of a new home or refinancing your existing mortgage, it’s certainly worth checking around to see what kind of rates you qualify for. But you want to make sure you’re actually going to save money and you’re not just jumping into a decision because the rates are at historically low levels. There are deals to be had out there, but it may be harder to qualify for them, and there may be other strings attached that make the lower rate not as attractive as it seems. Check to see what the latest refinance and mortgage rates are in your area.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Should You Refinance Your Mortgage? Rates Are Low, But It Is Still a Tough Decision

It’s the middle of summer and most of the country is is still enjoying weather that is anything but what we’ll see in December, but that doesn’t mean you shouldn’t be thinking about Christmas. I know, you probably hate it just as much as I do when the stores seem to push their holiday merchandise out earlier and earlier each year, but that’s the beauty of thinking about Christmas in July–you may be able to avoid a lot of that holiday stress completely.

When it comes to the holiday season there are usually two things most people lack: time and money. We often wait too long to get around to shopping and that means rushing around in the weeks leading up to Christmas and stressing out or buying items that we didn’t really want. If the lack of time isn’t bad enough, most people find they didn’t budget enough (if at all) for the holidays, and that leads to spending money you may not have, putting the purchases on credit cards, or skimping on giving presents altogether. It doesn’t have to be that bad and if you start today, you can easily put aside $500 to ease the holiday budget or pick up a few items early on before it’s too late.

Start Today and Save $500 or More by Christmas

Don’t think there’s any money left in your budget to save for the holidays right now? Think again. You basically have 22 weeks left until Christmas, so that means it takes less than $25 a week to save up $500. You don’t have $25 a week to spare you say? Don’t be silly. Think about the things you buy or do each week that can come out of your budget to make this money magically appear. Just cut out one regular coffee you buy on the way to work and save $2.50. Take your lunch into the office just one day a week and save upwards of $10. Cook a family dinner at home instead of heading out just one night and you could save the entire $25 or more right there! If you do go out to eat just order a water instead of soda or adult beverage. Water is free and it will save you a couple of dollars each time.

See, it’s not that hard. You don’t have to cut your cable subscription, turn in your iPhone, or resort to using the internet at the library to come up with the money. Save two dollars here, five or ten dollars there, and before you know it you’ve come up with the cash without even missing it.

Now that you’ve found the extra $25 each week you need to actually save it. If you already have a savings account it’s easy enough to just deposit it there, but an even better idea is to create a separate savings account just for your holiday budget. This keeps it a bit out of sight and out of mind so you’re less tempted to tap into it for other things. So, the best bet is probably an online savings account such as FNBO Direct or Sallie Mae savings. These accounts integrate seamlessly with your existing bank accounts for easy fund transfers and they carry some of the best interest rates out there. Sure, you won’t make a ton of interest on a few hundred dollars, but something is still better than nothing.

So, what are you waiting for? $500 may not entirely cover your holiday budget, but it will put a nice dent in it for sure. But the best part is that once you have this account and recurring payment scheduled you can start saving for next Christmas as soon as this one is over without changing a thing. When you save $25 a week for a full year you’ll end up with over $1,300! Maybe you skip Christmas at that point and treat yourself to a well-deserved vacation. It’s up to you.

Getting Some Gifts Out of the Way Early

Why wait until after Thanksgiving to seriously start thinking about buying presents? There are a lot of people in your life that you’ll be buying for that you know really well and can find something they will like at any time of the year. If your wife has been hinting at some new jewelry for the past few months you can start looking around for deals now rather than wait. By starting early you’ll have more time and won’t be rushed into a decision and it’s the slow season for things like jewelry so you will likely get far more for your money. When it comes to the kids you might not know what the must-have toy will be yet, but that’s fine. Kids love almost any toy so you can pick up a toy here or there in the coming months and tuck them in the back of the closet.

But here’s the best part. Every gift you pick up early is one less gift you have to pick up come November and December. That means less travel in the slush and snow for your colder climate folks, less time fighting traffic and finding parking, and less time fighting the crowds and dealing with the inevitable nasty surprise of a must-have gift being out of stock. Instead, you’ll be sitting by the fireplace with your egg nog while everyone else is pulling their hair out at the mall a few days before Christmas.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Christmas in July: Easily Save More Than $500 by Christmas

New Law Makes FDIC Limit Increase Permanent

The Federal Deposit Insurance Corporation is a corporation that acts as an independent agency of the federal government. The primary responsibility of the corporation is to act as a insurer for consumer deposits at banks and to help protect the economy at large from the effects of bank failures. The FDIC insures deposits up to $250,000 per depositor per insured bank.

The FDIC was created as a result of the Glass-Steagall Act of 1933, in the midst of the Great Depression. The Roosevelt Administration wanted a way to make sure that depositors could be safe from the fear of losing their deposits if their bank failed. The FDIC was created to remedy that fear by insuring bank deposits against the risk of bank failure. Since the FDIC’s inception on January 1, 1934, no depositor has lost a single cent of insured deposits from the failure of their bank.

FDIC insurance is basically a guarantee that depositors will not lose their funds. If the bank where they keep their money fails, the FDIC guarantees that they will receive the full amount of those funds, up to the insurance limit, from the FDIC’s insurance fund. FDIC insurance protects depositors from the risk of bank failure and makes the banking industry safer for consumers.

The Great Depression highlighted the need for an institution like the FDIC. During the first ten months of 1930 after the catastrophic stock market crash of 1929, seven hundred and forty-four banks failed, ten times the annual number during the 1920s. By the end of 1933, over one hundred and forty billion dollars in deposits had been lost to bank failures, and eleven thousand of the twenty-five thousand largest banks had failed. This severe crisis prompted a response from the Roosevelt Administration, which passed the Glass-Steagall Act of 1933. The Act established the FDIC and funded it. The initial limit on deposit insurance was set at $2,500 in 1934, and was raised to $5,000 in 1935.

The FDIC was given the first real test of its abilities during the savings and loan crisis of the 1980s. Although the brunt of the crisis fell upon the Federal Savings and Loan Insurance Corporation, the pressure was too great, and the FSLIC became insolvent and was merged into the FDIC. Between 1980 and 1994, the FDIC helped to close over sixteen hundred banks that had been affected by the crisis. Fortunately, the FDIC survived and helped mitigate the worst effects, although the crisis still cost taxpayers an estimated $150 billion.

The FDIC works in tandem with other government agencies to protect the customers of other financial institutions, such as credit unions. The National Credit Union Administration, or NCUA, is the independent federal agency that charters and supervises federal credit unions. The NCUA and FDIC together insure billions of dollars worth of deposits at thousands of financial institutions throughout the United States.

With the passage of the Wall Street Reform and Consumer Protection Act on July 21, 2010, the FDIC insurance limits of $250,000 per depositor per insured bank has been made permanent. The $250,000 limit had been temporarily set up during 2008 and then extended to 2013, but the new financial reform law makes the limit permanent in an effort to increase consumer confidence in the banking system.

The ongoing financial crisis of 2008 has resulted in many changes to the financial system. The FDIC has protected bank customers since 1934, and it continues to do so. Even though over two hundred banks have failed since 2008, the FDIC has protected the consumers of all of them.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

FDIC and NCUA Deposit Insurance: Financial Reform Makes $250,000 Limit Permanent

A simple act of kindness can be enough to change a person’s life.  From the tiniest village in Africa to the streets of your hometown, opportunities to better the world exist and present challenges to those who are brave enough to accept them.

The giving of one’s time, talents, and body is selfless and rewarding.  People from all walks of life and economic statuses can become an “Everyday Philanthropist,” a term created by author Nicole Bouchard Boles by opening up their hearts, homes, and minds to making a difference.

The young mother and expert on low-cost and no-cost giving knows a thing or two about the human spirit.  She has transformed hers through research and volunteerism.  Donating time to worthy causes helped her gain a better understanding of the world around her and the real meaning behind philanthropy.

In fact, the underlying theme of her book is that one does not have to be wealthy to be influential.  Boles notes that many people envision a philanthropist as “a grand lady in pearls writing out checks with a lot of zeros,” but that is far from the truth.  Anyone can leave their mark on the world as long as they are willing to try.  Bank account balances do little to dismay the power of a good intention.

Throughout How to Be an EVERYDAY Philanthropist: 330 Ways To Make A Difference In Your Home, Community, and World—At No Cost, readers are given ample opportunity to dip a toe into the wading pool of volunteerism.  Here are some of the ideas suggested by the author:

• Sign an online petition.
• Knit hats for the homeless.
• Donate your unwanted formal wear.
• Recycle your old bicycle.
• Help out on Election Day.
• Ditch disposable and use cloth or canvas grocery bags.
• Eliminate junk mail waste by getting off of mailing lists.

Small commitments like these can eventually lead to bigger endeavors like the experiences written about by author Pam Grout.  Her book, The 100 Best Volunteer Vacations to Enrich Your Life includes many free opportunities to make a difference as well as providing information about programs that charge a fee.  Being a lighthouse keeper or working at the legendary Patch Adam’s Gesundheit! Institute are a few of the ways that people can roll up their sleeves and get involved with helping others.

Grout, who has written several books for National Geographic, sees the spiritual side of travel.  She believes that the closer you get to the people you meet on your journey, the better.  She states, “People in developing countries have a depth of joy, a richness to which those of us consumed with material things are often blind.  The question persists: Who ends up getting helped the most when you travel to help others?”  Chances are the person that she is referring to is you, an “Everyday Philanthropist”.

According to a report put out by the Corporation for National & Community Service, volunteering has measurable benefits.  People that give their time and resources to others are happier, healthier, have better control over their lives, demonstrate high levels of self-esteem and greater life satisfaction.

If you are looking for a way to improve the quality of your life, volunteerism is one of the quickest routes to a better sense of overall well-being.  Grab a friend or family member and spend a few hours at your local soup kitchen.  The people that you help will be glad that you did.

Charissa Arsaoui is a freelance writer for ChickSpeak, Buzzine, DisFUNKshion Magazine, Student Stuff, and a guest contributor for Wisebread.  She loves thrift related topics and can spot a bargain a mile away.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Everyday Philanthropy: Simple Ways You Can Start Helping Others Today

Are you tired of all the investing gimmicks out there? Invest in gold, buy commodities, short stocks, trade Forex, and all of that garbage? You’re not alone. Companies are targeting investors and trying to lure them into more uncommon investments in part thanks to the weak economy and stock market performance over the last few years. After all, if you lost 50% of your retirement account in just two years you’re probably open to trying something new and have your doubts about traditional investing.

The problem is that people begin flocking to alternative investments only to misunderstand the true risks involved and end up making matters even worse. There’s money to be made everywhere, but not all investments are suitable for everyone. Once you abandon traditional investment selection and portfolio management strategies you’re on your own. So, rather than trying to time the market by risking money on investments being sold by infomercials, it’s time to get back to basics.

That’s why I’ve put together Invest Like a Pro. It’s a collection of some old and new material that will teach a beginner how to choose mutual or index funds, how fees work, how to create an asset allocation strategy, and monitor and rebalance the portfolio over the years. No gimmicks here. Just sound investment advice for regular investors that can help you manage a portfolio like a pro.

Inside the book:

• Learn how funds charge fees and how to minimize them.
• Learn how to use Morningstar to research and compare investments.
• Learn about asset allocation, correlation, and true diversification.
• Learn how and when to rebalance your portfolio.

Sample Pages:

Download the Book:

All you need to do is fill out the form below to get instant download access. After verifying your email you’ll receive a direct download link. In addition to this book you’ll get exclusive personal finance content not found on the blog, access to additional books, and much more.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Download My Free eBook: Invest Like a Pro

Who says you can’t have fun unless you spend money?  Here at Generation X Finance, we are full of suggestions on how to stretch your dollars further.  Summer vacations are no exception.  If you can’t afford to take the kids to Disney World this year, why not opt to find a more frugal type of entertainment?  From summer reading programs to free movies, there are plenty of reasons to get out of the house and have some fun no matter how tight your budget may be. A staycation has never been so much fun!

Reasons to Have Some Fun in the Summer

Here are five free summer activities for you to try:

• Books, Check Em’ Out. Libraries nationwide have Reading Programs designed to entice readers to expand their horizons and widen the depths of their imaginations.  Library Cards are free to obtain and have many advantages.  Not only can you check items out, you can also participate in events and attend free classes.  You can help your children develop a love for reading by taking them on a trip to your local library.

• Get Outdoors. From public parks to city beaches, you can spend your day in the sun—laughing, swimming, and sunbathing for nothing more than the cost of the gas to get there.  Pack a picnic lunch and plenty of drinks and snacks.  Design an activity book according to your chosen theme of the day and give each child a copy of it with a box of crayons to keep them occupied on the way to the location.  Not only will it keep them busy, it also will provide them with a no-cost souvenir that will remind them of their day of fun.

• Go See a Film. Many movie theaters have Free Family Film Festivals throughout the months of June, July, and August.  You can view a list of the titles being shown by visiting the company’s website.  Some communities also do a Movie in the Park.  Pop a few bags of popcorn, throw some cold drinks into your purse or mini cooler, and pack up a couple of blankets for your family to sit on.  Nothing beats watching your favorite film underneath a bed of stars.

• Be a Tourist in Your Own Town. Fire up the ol’ digital camera and explore parts of your city that you have never been to.  Try to cover as much ground as you can by foot and stop and take lots of pictures along the way.  Visit museums and monuments that do not charge an entrance fee and learn about your hometown’s rich personal history.

• Help Others in Need. Find a way to bring joy to other people’s lives.  Volunteer to visit with elderly people in your community or help teach a person how to read.  There are plenty of opportunities to improve the greater good of humanity.  You can start by visiting Volunteer Match and signing up for a free account.  Thousands of organizations need your help in one way or another and you will walk away from the experience knowing that your hard work was put to good use.

Living on a tight budget requires creativity and a willingness to try new things.  The aforementioned list, although short, gives you plenty of ways to spend your vacation.  Now it is up to you to make something magical happen.  Grab your spouse and children and get outdoors.  Not only will a change in routine brighten your smile, it may be the start of some great family traditions.

Charissa Arsaoui is a freelance writer for ChickSpeak, Buzzine, DisFUNKshion Magazine, Student Stuff, and a guest contributor for Wisebread.  She loves thrift related topics and can spot a bargain a mile away.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

5 Frugal Ways For You and Your Kids to Spend Summer Vacation

In this day and age it’s almost impossible to find someone who doesn’t have a cell phone in their pocket. When you think about it, cell phones have come a long way in a relatively short amount of time. Just ten years ago you were considered cutting edge if your phone had more than a green LED screen. Fifteen years ago many people were still toting around actual car phones that came in a bag to lug around. Today, phones are hardly bigger than a credit card and can do more than our personal computers could just a decade ago.

But this luxury comes at a price. Who hasn’t opened their phone bill only to get a jaw-dropping surprise? Hidden fees, changing plans, text messaging overage, mobile web, Blackberry plans, early termination fees, insurance, and so on. There are dozens of little fees that will sneak onto your bill and really put a dent in your budget. Even though most of us need our phones, there are ways to trim your mobile phone budget.

Cut Down Text, Cut Down Cost

One of the hottest trends across the globe is the use of text messaging, and it is still on the rise. Teenagers and young adults will text many more times than make a phone call. 77% of all teenagers text message, 88% of mobile phone owners, with 1-in-3 teens sending an average of 3000 texts per month. Texting is easy, but it can be costly.

Try to find a service that offers exclusive deals for text messaging, such as incoming texts that are free of charge, or one that has an unlimited text plan that only costs you a monthly, flat rate. Also, because teenagers are the big texters, some parents have begun to issue a “pay for your own texts” rule. If the kids want to text, the money can come from their own pocket. You’ll be amazed at how fast they cut down on texting when they have to pay for them.

You may also want to consider using instant messaging applications on your phone to help cut down on texts. Most smart phones will allow you to install AOL Instant Messenger, Google Talk, Skype, and other major messaging clients. If you have friends that you regularly talk to that are online it can be just as easy to send a quick message via IM.

Find the Phone that Fits

What do you need out of a phone? I said need, not want. Everyone wants the latest Android or iPhone, but if you literally only keep a phone on you for the occasional call, you are likely throwing thousands of dollars away on something that does much more than you actually need. I know it’s blasphemy to even consider giving up a smart phone, but if you’re trying to tackle debt and go beyond living paycheck to paycheck this is one of the easiest ways to save big.

There are phones out there that are sleek and stylish, although not as up to date, but come at a much lower price. In fact, there are quality phones that are free when you sign up for a call plan. They may not be the latest technological marvel, but oftentimes include a camera, video, text, and Bluetooth capabilities. These are quality phones may lack the huge touch screen and some apps, but still do all the necessities and literally save you hundreds of dollars a year.

Watch Those Minutes

With all of the amazing features that most phones have, one of the least important aspect for many people is how many minutes you get with the plan. Don’t overlook it, because if you are paying for a 1,000 minute plan but only use about 600 each month see if there’s a 750 or 800 plan you can downgrade to. It could be as simple as that and save ten bucks a month. And don’t skimp on the minutes just trying to save a few dollars if you have a tendency to talk a lot. Going over your allotment of minutes can be far more costly than bumping up to the next plan.

If you are paying minute by minute, try finding a plan that offers free nights and weekends. To some services, night begins at 9:00, while to others it may be earlier, so make sure you know when the free talk time kicks in and take advantage of it when you can. Most providers also allow free calls to others on the same network so if you aren’t in love with a particular network you may want to see what most people you talk to the most are using and think about switching. It obviously doesn’t make sense to switch if doing so will give you poorer service or a higher monthly fee, but all things being equal it could provide a savings.

Don’t Call for Information

If you have a smart phone there’s no need to call 4-1-1 or information to get a phone number or address on the go. A quick call to information can cost you over a dollar. It’s probably just a habit, but the same information is right at your fingertips now. I mean, that’s why you bought an iPhone, right? I know you didn’t buy it just to check Facebook and Twitter 24/7.

Even if you don’t have a smart phone there’s no need to pay for information. Give 1-800-GOOG-411 a call and it’s free.

Ditch Roadside Assistance

Like many of the add-ons phone companies offer, roadside assistance is often a waste. It could be truly helpful in a time of need, but chances are your auto insurance already has a roadside assistance number to call. If it’s a new car you probably also have roadside assistance through them as well. There’s no need to pay for something you probably already have, so ditch it if it’s costing you extra. If it’s just included as part of your service though, that’s great.

Get an Employee Discount

Even if you aren’t aware of an employee discount, you need to ask. Your employer may not make it obvious so just give your current provider a call and inquire about it. Employee discounts often range anywhere from about 10-35% off and all you have to do is ask!

I never realized it, but my wife got a 20% discount at Verizon with her employer. Being a small employer it never even occurred to me that there might be a discount, but after letting a few years pass and paying full price we heard from someone that there was a discount. Suddenly our bill got 20% cheaper.

Even if your employer doesn’t have a discount with your current provider they may run their discount through another, so be sure to check out all the options. You might have to switch carriers to get the discount, but it might be worth it if you can save 35% each month.

Cut Back on Paid Apps

The ability to download an app for almost anything is great. Even better, most apps are usually just $0.99 to a few dollars. Individually they are inexpensive, but if you’re downloading a handful of apps each month it’s costly. If you buy three apps a month at $1.99 that’s an extra $6. Do that all year and you are spending $72, or enough to pay for a full month’s bill, just on apps you may not even use that often.

I know I’m guilty of this one myself. I have a number of apps on my phone that I bought because they looked neat and I knew that at a dollar or two they were cheap. Most of them are now just sitting on the phone taking up space and may never get used again.

So, before you hit the buy button take a moment to think about how important the app really is. Even better, look to see if a free trial version is offered first. Either way, it may not seem like you’re spending a lot, but over time it does add up.

Ask for a Better Price

Seriously. Call up your carrier and ask about promotions, new plans, or other things that could make your bill cheaper. Cell phone plans seem to change with the phase of the moon, so the great plan you got a year ago may already be obsolete and has been replaced by something new. A lot of times your carrier won’t automatically move you into their new comparable plan and you’re simply grandfathered in with your old plan. So, by switching you may get a few extra minutes or features at the same price you were paying before.

If you’re currently near the end of your contract don’t be afraid to give them a call and let them know you are shopping around. They want your business and if it’s possible you’ll leave to another carrier you may be able to snag a good renewal contract, get a big discount on a phone, or have some features added to your plan for free.

It just takes a phone call and the worst they can say is no, so what’s to lose?

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

8 Ways to Save Money on Your Cell Phone Bill

For those of us who don’t live in a city with public transportation, owning a car and paying for gas is usually a necessity. Thankfully, gas prices have remained relatively stable over the past year and we haven’t seen the crazy prices of just a few summers ago. Even so, gas isn’t cheap and it can take up a pretty large chunk of the monthly budget. Since buying gas often becomes a weekly routine it’s easy to forget about how much it’s actually costing. So, I wanted to see what other people are typically paying and compare it to what we are paying each month.

So, I went to my favorite financial spending site Bundle and pulled up the latest information on gas spending. To give me a more accurate picture to compare my personal spending data to I set the filters to show data for those who are married and have kids and were in my age group. After loading my location and the entire U.S. here’s what I found (click the image to go directly to the data):

The national average for gas spending is about $220 a month and married couples my age with kids tend to spend about $250. That’s interesting, but how does my personal gas spending stack up? Unfortunately, we’re above average, even for our particular location. We typically spend right around $275-$290 each month on gas. It makes sense that people in our area spend more than the national average because it’s one of the most rural counties in the state. Most people are driving 10-30 miles each way just to get to and from work and most residents will have to drive upwards of a half hour to forty-five minutes away just to find the nearest major shopping center. Combine the long distances with a large population of farming families and the tremendous snow in the winter and you have a lot of four-wheel drive vehicles on the road using up even more gas.

So, that brings me to today’s poll question. How much do you spend on gas each month? The numbers can be interesting, but they are even more useful when you compare them directly to similar households in your specific location. So, I encourage you to head over to Bundle and enter in your location and similar demographics to see how well you compare. But for the sake of the poll below I think it would be interesting just to see the range of gas spending among readers. If you plugged in your own data and found something interesting please share below in the comments!

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Poll: How Much Do You Spend on Gas Each Month?