Why keeping up with the Jones’ could leave you broke?

Today's society places a lot of value on material possessions and many people feel they cannot achieve true happiness unless they have the latest gadgets. However, despite a mountain of the newest technology and a bulging wardrobe, some people continue to be tormented by others who seem to have more.

Having a houseful of expensive goods is no longer a sign of wealth as an increasing number of people are willing to get themselves into debt in order to keep up with the latest trends.

Even those with a low credit score and little personal funds are able to continue to accumulate belongings with the assistance of credit cards.

But while it can be fun to splash out every now and again, being caught in a spiral of debt just to keep up with the neighbors can be wearisome, let alone costly.

So how can it be possible to escape the inner desire to stay one step ahead of the Joneses?

Experts suggest taking a long hard look at the people you most envy. Appearances can be deceiving and while some people can appear to have everything, behind closed doors it can be a different matter. Those who always have the latest designer clothes, the flashiest autos and the most exotic vacations may be financing it all with borrowed money and maybe even a bad credit credit card.

Having the knowledge that in order to have the best possessions, it is necessary to sink into a pit of unmanageable debt can be very liberating.

The same neighbor that has the best of everything may not be particularly savvy when it comes to saving money and could end up spending their retirement scratching to make ends meet while you enjoy cruises away on your pension.

The recession has done Americans a backhanded favor in some ways by leveling the playing field so that nearly every household has to economize and make concessions, even if it isn't always obvious.

With the exposure that debt is getting on the news every day, people are becoming far more honest about having to pay for things with credit, even admitting to owning bad credit credit cards rather than continuing the facade of having deep pockets.

However, it is human to hanker after what we don't have and what we can see around us but there are tips that can help to put things into perspective.

Most people tend to look towards those who have more than them and compare themselves unfavorably. A good alternative to try is to compare yourself to where you used to be and to people who have less than you and you will see how much you have achieved.

It is also important that while making savings and not overspending a priority, that you let yourself have a little fun and splurge on something you really want sometimes. Feeling hard done-by and deprived will only make you feel disgruntled.

If all else fails, a simple but effective method to fall back on is to ask yourself, does it really matter?

Sometimes, acknowledging that, sure, your neighbor's new auto is great but really, in the long run do possessions really matter that much? Is the stress of having unmanageable debts worth a lump of metal sitting on the drive?

It may sound patronizing but there are some things that are more valuable than money, such as time with your family, health and peace of mind and anyone who has those things is rich in the way that matters the most.

Three Best Money-Saving Tips for Buying a Car

When you're trying to buy a car, many small details go into it. You need to be able to inspect the vehicle or have a knowledgeable person inspect it for you. You will need some haggling skills and have to understand a few important terms about car prices. Most importantly, you’re going to need patience.

Inspect the Car Carefully
When you're looking for cars, you need to inspect it. Pop the hood and look at the insides. Are there any liquids leaking? These are likely bad. How does the car sound? Listen for any loud clunks, rattles, or, really, anything out of the ordinary. Turn it on and try everything: the horn, the stereo, the AC, the heating, the windshield wipers, everything. Are the tires flat? Look over all the major systems of the car and make sure everything works well. If anything isn't working right, you should be able to point it out to the salesperson and use this knowledge as a bargaining chip to get him or her to drop the price down. Or, you might not want to get the car; in this case, you just saved yourself days and nights of headaches dealing with a broken down car you just spent a bundle on! This is why you should look everything over once, twice, and maybe three times.

Understand Pricing
When it comes to pricing, there is always the sticker price. This is the listed price, usually located on the car, which is almost always marked up considerably. However, there is also the invoice price, which is what the dealer paid for the car. You will want to nudge the agreed on price down to the invoice price. Then, there are the Kelley Blue Book and the Edmund's True Market Value indexes. These will tell you what the car is worth based on a combination of factors: age, condition, and market conditions. These are generally based on how much the car is going for on the open market. You will want to point out these prices to the car salesperson if they are charging far more than these suggested prices. If, on the other hand, they are asking less, then you might want to keep this bit of knowledge to yourself--at least if you'd like to save yourself a bit of money.
Don't overlook insurance pricing either. Get a quote to make sure you can find affordable auto insurance before you make a purchase decision. Sticker shock on the car is bad enough. Don't let the insurance shock you too.

Wait It Out
The best tip you can get is to wait. Be patient. Most salespeople try to rush you into saying yes as quickly as possible. Why? Because they don't want you to think about it and end up buying another car. If you thought and really thought about all the different factors, you might not choose their car. So, many car salespeople will try to pressure you into saying yes or signing a piece of paper. Wait! Don't sign anything. Wait at least one day. Think it through and talk about your different options with a trusted friend or family member. Imagine all the different angles associated with this car; how will it work, does it have enough space, and so on. This well-spent time will work to make sure you don't suffer from sales pressure or make a foolish mistake.

CureAutoInsurance.com offers New Jersey and Pennsylvania car insurance. The company helps consumers by waiving the credit check and pricing your policy based on your driving record, not your credit history.

How not to keep a good credit score

Unless you are one of the rich and famous, chances are that some time in your life you will need to purchase an item on credit.

The two major purchases are a house and a car but in these difficult economic times, some people are using credit for day-to-day survival.

But how do you keep a good credit score or repair a negative one? There are many ways, including using credit cards for bad credit and prioritizing payments.

Companies do not publish how they calculate your credit score as this differs from lender to lender. They will all use certain criteria, however, to make that decision.

This includes any past history you have with the company. If you have previously borrowed money or used their credit cards and repaid on time, this will be viewed favorably.

The information you provide on the application form is also used, so be honest about your situation if you do have other debts or financial issues.

Sometimes, the lender may not be as concerned about these debts as you fear. Student loans, for example, are often taken for granted and not penalized.

Companies will also use credit files held on you by the three major rating agencies. These detail your history, including any negative issues or court action taken against you.

There is no official credit blacklist, so one company may lend to you whilst another may not. It all depends on the company and how the risk and reward equation they follow.

In the United States, a FICO score is the most commonly used credit rating. The score range is from 300 to 850, with 300 being the most negative score.

In 2010, statistics show that the median score of Americans was 723. The median score is the middle score, so this tells us that half of Americans will be below this figure and half above.

Having a lower FICO score, however, affects the amount of credit you are offered and the interest rates companies impose on you. The lower your score, the higher the interest.

If you wish to improve your FICO score, there are several ways to do this. Firstly, sit down and calculate how much you owe and make a realistic budget.

Make at least the minimum payments on each debt and do so on time. This will help show you are responsible and dependable and this will be viewed favorably.

Look at the range of credit cards for bad credit, which are designed to help you increase your credit rating. Many people have used this to help repair or improve their credit score. Although the interest rates are high to begin with, lenders will reassess and reduce your interest rate if you consistently make monthly repayments.

These little steps will assist you in attaining and keeping a good credit rating score. Remember, the higher your score, the easier you will find it to access great deals on mortgages, credit cards and loans. Good luck and take positive action now!

How inflation is devaluing your home

As the economic climate continues to look dismal, the bright spot for many is that they own their own home and property has always been viewed as a good investment for long term gains.

Unfortunately, whilst this has always been true in the past, the current rate of inflation means that the true value of a house is far less than it would seem to be.

Some research has suggested that when inflation is taken into account, the worth of a typical house is around 8.5% less compared to 1979. Not a great return for over 30 years of investment.

However, owning property is still far preferable to renting for most and for many, the peace of mind that owning your own home brings is worth the risk of deflation.

But how do you calculate how much your home is worth and how should you consider financing a mortgage?

There are different ways in which to arrive at the value of a home and this can be one of the reasons why prices can vary when a professional assessment is carried out.

There are two main approaches – the market value approach and the sales comparison method.

The market value evaluation process attempts to reach what the value of the property would be if there were no additional external factors to consider, such as the need for a fast sale. It takes into account all of the usual factors such as condition, size, facilities and location and bases the valuation on that.

The sales comparison approach does take all of the above into account, but also considers what similar sales in the local neighborhood have been like and reaches a price compared to what other properties sold for. This is the most common approach with professional property valuers.

For those not planning on moving but interested in finding the likely value of their home, there is an online calculator available from the Federal Housing Finance Agency.

Whilst this calculator does not provide any individual valuations, it can provide an indicator of how the price of your house is likely to have changed based on the original purchase price, time of sale and location. This is obviously only intended as a very rough guide.

Those looking to finance a mortgage should first set their budget with the help of a

A mortgage calculator can help to work out what the impact of a larger deposit would be on repayments and how much wiggle room there is in the budget in the event of interest rate changes.

Those with a lower credit score may not find it as easy to finance a mortgage as in previous years, as the market for this was hit very badly by the recent financial crisis. This has made lenders far more cautious about extending credit to individuals with a less than perfect credit score. It is still possible to obtain credit, but the interest rate will be higher, making repayments more expensive.

The only way to avoid this is by either having a co-signer on the agreement, or by having a hefty chunk of savings available to put down as a deposit.

A mortgage calculator can help to work out the costs and a comparison website can help pinpoint lenders who are willing to consider those who have problems in the past.

Guest Post by MoneySuperMarket