Buying in bulk is a great way to save money by paying a lower unit cost. If we allow larger quantities to influence how we consume, however, the savings may be reduced or even eliminated.
Having larger quantities of consumable goods makes an individual amount less valuable. As such, we may be more likely to [...]
Buying in Bulk Drives Consuming in Bulk
October 10th, 2008 — , Financial Education from Mike Smith @ Lending Club
Leaving Your Job When You Leave the Office
October 9th, 2008 — , Financial Education from Mike Smith @ Lending Club
For all of the many benefits technological advancements have brought to the workplace, one huge downside comes along for the ride: leaving your job when you leave the office is becoming more and more difficult. The Networked Workers Survey conducted by the Pew Internet and American Life Project found that 50% of employed email users [...]
Related StoresInternet Businesses Websites Businesses for Sale Opportunities
Life Savers Candy Nuts Advertising Collectibles
Continue reading → Leaving Your Job When You Leave the Office
Double the Good Using Goodwill
October 7th, 2008 — , Financial Education from Mike Smith @ Lending Club
Making clothing donations to a worthy charity like Goodwill has always yielded multiple benefits. In addition to the charitable work done by these organizations, donors have been able to take small tax deductions as well. Another advantage getting a lot of attention lately is that shopping at charity thrift stores can lead to some unbelievable [...]
Related StoresSmall Business Bailouts Are Do-It-Yourself
October 6th, 2008 — , Financial Education from Mike Smith @ Lending Club
It seems that 2008 will likely be remembered as the year of the bailouts. Such a generalization loses sight of the fact that only big businesses are getting government help. Not only are small businesses not getting bailed out, but their options are also shrinking as credit tightens.
The National Small Business Association recently released its [...]
Continue reading → Small Business Bailouts Are Do-It-Yourself
Should You Pay to Save?
October 4th, 2008 — , Financial Education from Mike Smith @ Lending Club
They say that it takes money to make money, and often times that holds true. But can spending money save you money? In many cases, it can. Monitoring the costs and the savings are a great way to continually ensure that paying to save makes good financial sense.
Paying to save comes in many different forms. [...]
Inspiration to Save
October 3rd, 2008 — , Financial Education from Mike Smith @ Lending Club
At times, it can be difficult to save money. All too often we feel that we have enough trouble just staying afloat, let alone trying to get ahead. Seeing others find success can provide the inspiration we need, particularly when they are even worse off financially than we are.
That’s exactly what I took away from [...]
Separating Leisure from Spending
October 2nd, 2008 — , Financial Education from Mike Smith @ Lending Club
When trying to cut back on spending, we often eliminate activities that bring us joy. The frustration that ensues can cause us to give up and revert to our old ways. A better method is to try to separate our leisure from our spending. That will allow us to still do some of the things [...]
Related StoresMini Emergency Fund When Traveling
October 1st, 2008 — , Financial Education from Mike Smith @ Lending Club
The benefits of building an emergency fund have been covered in depth both on the Lending Club blog and in many other personal finance advice forums. Using that lesson on a smaller scale, particularly when traveling, can afford many of the same benefits.
A few weeks back I took a serious road trip. In the course [...]
Building of Banks
September 28th, 2008 — , Financial Education from Mike Smith @ Lending Club
Despite the well-publicized bank failures and bankruptcies in recent weeks, I continue to see a huge number of consumer banks being built. Tough economic times may drive the demand for such banks, but only those expected to be profitable would actually be built.
At one intersection in an expanding part of town, there are construction sites [...]
Another Downside of Gift Cards
September 26th, 2008 — , Financial Education from Mike Smith @ Lending Club
In my post, The Gift That Keeps on Taking, I described many of the negatives of gift cards. Recent calls for reform highlight another risk of using gift cards: they only hold value if they continue to be accepted.
The typical case where gift cards may no longer be accepted is when the company issuing the [...]
Paying for Portraits
September 25th, 2008 — , Financial Education from Mike Smith @ Lending Club
Having a young child, we take a ton of photographs at our house. A recent experience with a professional photographer reminded me not only how expensive they can be, but also how unnecessary they are in many cases.
Even though I consider photography a hobby of mine, I realize that I am still very much an [...]
Spend Your Emergency Fund Wisely
September 24th, 2008 — , Financial Education from Mike Smith @ Lending Club
Creating an emergency fund is certainly important, but spending it wisely when the time comes may be even more essential. Poor decisions may make an emergency fund much less effective, or require a much greater sum to be amassed.
As was discussed in my short-term savings post, a general goal is to have three to six [...]
Resisting Change May Save You Money
September 23rd, 2008 — , Financial Education from Mike Smith @ Lending Club
Change may be the only constant, but along with change, higher costs often come along for the ride. Resisting change may allow you to save money.
As anyone who has ever purchased consumer electronics can tell you, the longer you wait, the less expensive the products become. The cost of the top of the line model [...]
Weddings and Social Lending – A Perfect Match
September 22nd, 2008 — , Financial Education from Mike Smith @ Lending Club
We may think that the process of getting married starts with a proposal, but it actually starts even sooner: picking out (and paying for) the engagement ring. As you will see, this is the first of many expenses that is an ideal candidate for financing via social lending sites.
Buying an engagement ring is likely the [...]
Wedding Ring Quilts Quilts, Bedspreads Textiles, Linens Antiques
Fellowship of the Ring Lord of the Rings Sci-Fi, Fantasy Trading Cards Collectibles
Continue reading → Weddings and Social Lending – A Perfect Match
Companies That Serve Conflicting Needs
September 20th, 2008 — , Financial Education from Mike Smith @ Lending Club
In an effort to win over as many customers as possible, some companies offer services that seem to be at odds with one another. As a result, their marketing for each of their products seems somewhat less credible.
The Scotts Company provides an example of this type of conflicting service. For years, I’ve used their lawn [...]
Piggybacking Not Done Yet
September 19th, 2008 — , Financial Education from Mike Smith @ Lending Club
Despite a pledge to stop recognizing authorized user accounts in determining FICO scores, Fair Isaac has since recanted and will continue to use them after all. While this is good news to many authorized users, it will also allow the fraudulent practice of piggybacking to continue.
The way authorized user accounts work is that someone with [...]
Choosing a College Without Considering Costs
September 18th, 2008 — , Financial Education from Mike Smith @ Lending Club
The Associated Press recently reported that earning potential and its impact on paying off college debt were often not considered when choosing which school to attend. This, at the same time when one of the featured articles in Money magazine asked “Is a College Degree Still Worth It?”
It seems reasonable that other, more emotional factors [...]
College Basketball Cards College Trading Cards Cards Sports Collectibles
College Football Cards College Trading Cards Cards Sports Collectibles
Continue reading → Choosing a College Without Considering Costs
Timeframe For Personal Finance Activities
September 17th, 2008 — , Financial Education from Mike Smith @ Lending Club
Trying to manage all aspects of our personal finances can seem overwhelming at times. To help bound the frequency of some relevant events I listed how often I perform each of the following personal finance activities:
Daily
Enter receipts into my budget software
Check my investment positions
Shred envelopes with my name and address
Write for the Lending Club blog
Go [...]
Personal, Field Gear Surplus Militaria Collectibles
Canteens Personal, Field Gear Surplus Militaria Collectibles
Continue reading → Timeframe For Personal Finance Activities
Why Spending Less Than You Earn Seems So Difficult
September 16th, 2008 — , Financial Education from Mike Smith @ Lending Club
Spending less than you earn is one of the most basic principles of making positive progress towards your personal finance goals, yet so many of us have a difficult time implementing the process. Below are some of the ways we allow ourselves to falter, along with suggestions on ways to improve.
We aspire to a higher [...]
SPF 25 and Higher Sunscreen Sun Care Skin Care Store
19.2 volt Higher Cordless Drills Power Tools Tools Home Improvement
Continue reading → Why Spending Less Than You Earn Seems So Difficult
FDIC Insurance Limits
September 15th, 2008 — , Financial Education from Mike Smith @ Lending Club
Having too much money sounds like one of those problems we’d all like to have, but there are legitimate concerns over the safety of deposited money when FDIC insurance limits are exceeded. Understanding these limits and taking appropriate steps can help to ensure your cash, which is generally believed to be the investment with the [...]
Related StoresFree TransUnion Credit Score
September 14th, 2008 — , Financial Education from Mike Smith @ Lending Club
You may already know that credit reports are available free of charge once per year from AnnualCreditReport.com. Credit scores, which are the number that lenders typically use when determining credit, are generally only available to you for a fee. Thanks to a new class action settlement, most people are eligible to receive their TransUnion credit [...]
Related StoresDocument Destruction Options
September 13th, 2008 — , Financial Education from Mike Smith @ Lending Club
By now, most of us know the importance of destroying sensitive documents as a way to reduce our risk of identity theft. Once we decide to take action, there are a number of different ways to actually destroy the information.
Many items, such as receipts and bank statements, are suitable for burning. As long as plastic [...]
Is Your Rewards Card Worth It?
September 12th, 2008 — , Financial Education from Mike Smith @ Lending Club
As its name implies, your rewards credit card will reward you for using it in compliance with the rules of the card. Comparing what you give up to have such a card with what you get in terms of rewards may lead to the conclusion that it’s not worth having.
The standard argument for having a [...]
Secure Your ID on September 20th
September 10th, 2008 — , Financial Education from Mike Smith @ Lending Club
After a successful inaugural “Secure Your ID Day” earlier this year, the Better Business Bureau and the credit reporting agency Equifax will be holding an encore event on September 20th.
The event aims to educate the public about the importance of destroying personal information to help prevent identity theft as well as provide an opportunity [...]
Paying Off Mortgage Loans in Half the Time
September 9th, 2008 — , Financial Education from Mike Smith @ Lending Club
There’s an ongoing debate about whether or not you should prepay your mortgage. The general consensus is that if extra payments could be invested elsewhere for better returns, then prepaying your mortgage actually costs you money. I’ve covered both sides: why prepaying is a good idea, and whether it’s a mistake.
When you prepay, you have [...]
Continue reading → Paying Off Mortgage Loans in Half the Time
Giving Regularly to Charity
September 8th, 2008 — , Financial Education from Mike Smith @ Lending Club
Charitable giving can seem overwhelming at times, particularly when many requests come in at once. Towards the end of the year, the barrage of requests from charities looking to meet their yearly goals seem so large that it’s difficult to decide between the many worthy causes. Add to that the stress and financial burden of [...]
Related StoresLessons Learned from Back to School
September 6th, 2008 — , Financial Education from Mike Smith @ Lending Club
Seeing all of the back to school supplies out in the stores reminded me of the feelings I always had at this time of year when I was a child. Many of those feelings translate into lessons that are applicable to other aspects of our lives, including our personal finances. Here are a few of [...]
Related StoresKeeping Relapses Short
September 5th, 2008 — , Financial Education from Mike Smith @ Lending Club
When trying to break any bad habit, relapses are likely to come into play. Poor financial habits are no exception. Keeping those relapses short will minimize their impact and keep you on track towards your financial goals.
The truth is that good habits are usually more difficult to keep up than bad ones. One of the [...]
Economies of Scale
September 4th, 2008 — , Financial Education from Mike Smith @ Lending Club
Economies of scale occur when inputs get less expensive as you generate more output. More than just within the realm of big business, there are many ways we can use this principle in our own daily lives. Getting more for less is clearly beneficial to your personal finances.
One economy of scale we encounter all the [...]
How Important are Finances in Your Life?
September 3rd, 2008 — , Financial Education from Mike Smith @ Lending Club
Obviously, there are many things more important in life than money. Spending time with family and friends, enjoying life, staying healthy, and finding fulfillment are a few that come to mind. Those are not the types of things I’m talking about when discussing the importance of finances in your life. In fact, focusing on money [...]
Related StoresTelling Your Credit Card Company About Travel Plans
September 2nd, 2008 — , Financial Education from Mike Smith @ Lending Club
One way some credit card companies try to protect your account from fraud is by denying certain transactions outside of your normal area. Telling them about an upcoming trip may save you the hassle of having your card declined.
This typically happens when you are using your card in one place shortly after using it somewhere [...]
Continue reading → Telling Your Credit Card Company About Travel Plans
Self-Inflicted Motivation
September 1st, 2008 — , Financial Education from Mike Smith @ Lending Club
Humiliation, shame, fear and fees can all be powerful motivators. Setting yourself up to face any of them, should you fail to reach a goal, may very well help you to succeed. Now there is a website to create, manage, and police your goals along with penalties for failure.
StickK.com allows you to sign a commitment [...]
Being Productive Takes Action
August 30th, 2008 — , Financial Education from Mike Smith @ Lending Club
If you’re like me, you probably have a to-do list that you’re constantly working on. When a new project begins, creating a list of all necessary tasks is usually one of the first things I do. At times new lists, particularly long ones, can prevent progress because they seem so insurmountable. Once you get on [...]
Related StoresSmart Shopping for Glasses and Contacts
August 29th, 2008 — , Financial Education from Mike Smith @ Lending Club
One way we often end up overspending is by overvaluing convenience. At times, we don’t even realize we’re doing this. A trip to the eye doctor can fall into this category if we blindly purchase our glasses and contacts from our eye doctor, without considering alternative sources.
You probably chose your eye doctor because of a [...]
Price Versus Cost
August 28th, 2008 — , Financial Education from Mike Smith @ Lending Club
When making purchasing decisions, we typically look at price rather than at cost. Both are important, but paying the lowest price often ends up costing us more.
Rather than looking at the price of an item, consider the cost of the need it hopes to fulfill. By thinking about paper towels in terms of dollars [...]
Limiting Affiliate Marketing Offers
August 27th, 2008 — , Financial Education from Mike Smith @ Lending Club
You can opt out of receiving most unsolicited credit card applications, insurance offers, and similar junk mailings by using the opt-out procedure I’ve previously covered. One limitation of that program is that you may still receive offers from companies that you do business with and their affiliates.
Help in that realm has been in the works [...]
When Weather Costs You
August 25th, 2008 — , Financial Education from Mike Smith @ Lending Club
The recent heat wave in the Midwest, earthquake near Los Angeles, and signs that hurricane season has begun all remind us that there are many ways the weather can impact your budget. Weather-related expenses should certainly be part of your plan.
While natural disasters might seem like the main cause of weather-related costs, less dramatic weather [...]
Planning Your Meals
August 23rd, 2008 — , Financial Education from Mike Smith @ Lending Club
Groceries tend to be one of the largest expenses in household budgets. Cutting back and using cost-saving measures can help a lot, but so can planning out your meals ahead of time.
Planning your meals basically means deciding what to eat far enough ahead of time that you can save money. As we all know, impulse [...]
Summer Spruce-Up
August 22nd, 2008 — , Financial Education from Mike Smith @ Lending Club
Spring-cleaning may be better known, but a summer spruce-up can be just as effective. Evaluating your belongings and performing certain cleaning tasks are easier in different seasons.
Over a recent weekend, we performed a summer spruce-up in our house. It wasn’t a top to bottom cleaning like the one we do in the spring, but [...]
Overvaluing Rebates
August 20th, 2008 — , Lending Club from Mike Smith @ Lending Club
We’ve all been lured into a store with the promise of an unbelievably low price, only to find out that a mail-in rebate was involved. In many cases, the rebate makes the offer seem so good that we decide to make the purchase, but we really shouldn’t count on that discounted price until our rebate [...]
Related StoresDitch the Storage Unit and Its Contents
August 19th, 2008 — , Financial Education from Mike Smith @ Lending Club
Covering portable storage as a viable moving option in a recent post, Using Portable Storage For Your Move] reminded me to discuss the use of storage units in general. Such units promise to give you the extra space you need for a low monthly fee.
In a few cases, these units are a great option. This [...]
Batching Some Tasks Hurts Efficiency
August 18th, 2008 — , Financial Education from Mike Smith @ Lending Club
The process of batching, or storing up similar tasks until you can get many of them done at once, can provide a huge productivity boost. Paying bills is one such example. As I’ve mentioned in the past, batching bills can save you time by reducing how often you have to get out your checkbook, stamps, [...]
Related StoresUsing Portable Storage For Your Move
August 15th, 2008 — , Financial Education from Mike Smith @ Lending Club
Portable storage is a growing market in the moving business. A container is dropped off where you live, you pack it, and the company drives it to your new location where you then unpack it.
There are many advantages to using portable storage for your move:
You can pack your container at your own pace. [...]
Related StoresConflicting Financial Philosophies
August 14th, 2008 — , Financial Education from Mike Smith @ Lending Club
One of the subjects I touched on in my post about spousal influence on personal finance was the fact that family members often have conflicting financial philosophies.
The reasons why spouses may have different financial philosophies are widespread, but a major factor is the upbringing of each person. We all tend to see the way [...]
The Connection Between Sleep and Wealth
August 13th, 2008 — , Financial Education from Mike Smith @ Lending Club
Benjamin Franklin popularized the proverbial wisdom of “Early to bed and early to rise makes a man healthy, wealthy, and wise” in his periodical Poor Richard’s Almanack. The actual origins date back even earlier, at the very latest to John Clarke’s Paroemiologia Anglo-Latina. Origins aside, the truth in the saying endures to this day.
It’s not [...]
Preparing for a Major Change in Finances
August 12th, 2008 — , Financial Education from Mike Smith @ Lending Club
With ample warning, you can handle even major financial changes with ease. Planning for an unforeseen change also gives you a better chance of handling it well. As with most difficult situations, the steps to take are easy to understand, but take some work to implement.
Let’s look at an example scenario to see some [...]
Unconventional Thinking
August 11th, 2008 — , Financial Education from Mike Smith @ Lending Club
Tough economic times call for new ways of looking at things. Creativity allows deals to materialize where none seem to exist. Realizing that such power exists in the mind is liberating and opens up a whole new world of possibilities.
Consider the Australian family who found a house on eBay for $1. Even with the caveats [...]
Changing Your Habits With the Slowing Economy
August 9th, 2008 — , Financial Education from Mike Smith @ Lending Club
The current state of the economy is changing consumption habits in unprecedented ways. A combination of factors, notably high energy and food prices, coupled with the woes in the housing and credit markets, is creating the perfect storm for change.
Changes made for the better don’t have to be temporary. When the economy starts to improve, [...]
Credit, Charge Cards Trading Cards Collectibles
A Perfect Circle A Rock, Pop Music Memorabilia Entertainment Memorabilia
Continue reading → Changing Your Habits With the Slowing Economy
Is Inflation Overinflated?
August 8th, 2008 — , Financial Education from Mike Smith @ Lending Club
Inflation is generally defined as the rate at which the general level of prices for goods and services is rising. It only seems natural that things get more expensive with time as we see cars, houses, gasoline, and more fetching progressively higher prices. While inflation is certainly a cause for concern, do we overestimate its [...]
Related StoresPlaying Up Your Individual Strengths
August 7th, 2008 — , Financial Education from Mike Smith @ Lending Club
We all know that doing our fair share of work around the house makes for an efficient home. Taking responsibility for the tasks that we enjoy (or dislike the least) seems to work best. The same method can be used with great effect when handling all aspects of your personal finances.
It has repeatedly been shown [...]
Cutting Expenses to Avoid Foreclosure
August 5th, 2008 — , Financial Education from Mike Smith @ Lending Club
My recent post, Foreclosure Filings Still Rising, contained links to foreclosure avoidance tips and noted that a P2P loan could help those facing foreclosure.
Taking a look at my own monthly expenses, I made a list of some items that could be cut to avoid losing my home:
Cable
Internet
Home phone
Unplug my TVs, computers, etc., to [...]
How Good A Deal Can You Ethically Accept?
August 4th, 2008 — , Financial Education from Mike Smith @ Lending Club
As we’ve often noted here on the Lending Club blog, consumers, particularly those of the frugal mindset, delight in getting a great deal. In the quest to get everything for the best possible price, or the maximum possible value, there occasionally comes a time when our ethics also come into play.
The question of the day [...]
Continue reading → How Good A Deal Can You Ethically Accept?
The EPA is Using Cost-Benefit Analysis. So Should You.
August 3rd, 2008 — , Financial Education from Mike Smith @ Lending Club
Regardless of your position on the Environmental Protection Agency’s (EPA) importance or relevance, you can learn a valuable lesson from their decision-making abilities. Following their lead and performing a cost-benefit analysis of financial transactions will ensure that you make financially sound decisions. Since you will be able to use less subjective numbers, you’ll also find [...]
Related StoresContinue reading → The EPA is Using Cost-Benefit Analysis. So Should You.
Staycation – Being a Tourist in Your Own Town
July 31st, 2008 — , Financial Education from Mike Smith @ Lending Club
Largely attributable to rising gas prices, and the perceived cost of travel as a result, many families are forgoing traditional vacations and are opting for something closer to home, the staycation. The results are more than just the enjoyment of taking in the local sights, but also lower costs and a renewed appreciation for where [...]
Related Stores13.2 volt Lower Cordless Drills Power Tools Tools Home Improvement
Local US Political Historical Memorabilia Collectibles
Continue reading → Staycation – Being a Tourist in Your Own Town
Reviewing Your Top Expenses
July 30th, 2008 — , Financial Education from Mike Smith @ Lending Club
I recently sorted all of my expenses by size to get a better understanding of which items were costing me the most. Looking at spending from this new perspective is insightful and beneficial. What follows is my thought process and analysis of my top expenses to illustrate how this method is used. Your expenses will [...]
Related StoresSimple and Inexpensive Vacations
July 28th, 2008 — , Financial Education from Mike Smith @ Lending Club
We often fool ourselves into thinking that the more we spend, the better and more memorable a vacation will be. While money can buy certain memories, the correlation is probably much weaker than you’d expect. In fact, simple and inexpensive vacations are often the most relaxing, and the most memorable.
I love Mickey Mouse and the [...]
Reducing the Cost of Owning a Pet
July 26th, 2008 — , Financial Education from Mike Smith @ Lending Club
Pets can bring enormous joy into our lives, but can also cost us a lot of money. If you are considering a pet, or would like to keep costs as low as possible, we here at Lending Club suggest you consider the following tips that will benefit you as well as your pets:
Keep startup costs [...]
Getting More From the Money You Spend
July 25th, 2008 — , Financial Education from Mike Smith @ Lending Club
When you are careful with your personal finances, you do everything possible to ensure that every dollar spent is done so in an efficient manner. Once a purchase has been made, getting the most value from that purchase is a continual effort. There are many purchases that encourage or even enable additional savings.
One example of [...]
Financial Transaction Post Mortem
July 24th, 2008 — , Financial Education from Mike Smith @ Lending Club
People say that hindsight is 20/20, meaning that looking back we see things most clearly. Reviewing our financial transactions after they are complete can be a valuable learning experience that will help prevent you from repeating prior mistakes.
Performing a financial transaction post mortem, as I like to call it, is most useful for financed purchases [...]
Foreclosure Filings Still High
July 23rd, 2008 — , Financial Education from Mike Smith @ Lending Club
The number of foreclosure filings for June was recently released, and the news is not good. The Associated Press is reporting that filings were 53% higher than last June. This trend shows the increasing number of homeowners with few perceived options and reminds us all to take steps to prevent foreclosure before it’s too late.
The [...]