If you’re looking to save money this holiday season, you can’t go wrong with a good old-fashioned Christmas Club. First offered by banks during the Great Depression as a tool to bring customers back, they’re still around decades later. Here’s what you need to know about saving money this holiday with Christmas Clubs.

A Christmas Club is essentially a special savings account for Christmas season spending. They’re generally offered through local banks and credit unions. Additionally, a Christmas club is considered a short-term investment. Meaning unless you’re saving for a Christmas ten years from now, you’re going to close the account once the holiday season is over.

Most Christmas Club accounts begin in January. This provides you with eleven months to save up for the holiday. You withdraw your money on November 1st and make your holiday purchases. You can also often roll any remaining money over into another account. If the account is at the same bank, there may not be any fees applied to this transaction.

The benefit to a Christmas Club is that you’re earning interest on the money you’re putting away. Thus you’re making money. This is of course money you can use to spend on gifts. However, the other significant benefit to a Christmas Club is that when you put away $5, $10 or even $20 a week into the account, saving is easy and it adds up.

When the holidays roll around, you don’t have to stress about where the money is going to come from. Additionally, if you plan your savings right and stick to your budget, you don’t have to charge anything to your credit cards. Imagine a holiday season without debt!

How to Compare Christmas Clubs

When seeking a Christmas Club, you want to look at a few key facts or data points. The first is: what is the interest rate your money will be making? The more interest you make on your money, the more money you’ll have to spend.

The second item to compare is how much you need to open the account. Some banks or credit unions offer different account options. For example, they may offer one account with a $5 minimum balance designed for children to save, and a $100 opening balance for adults. The adult account will likely earn more interest.

Also take a look at the dates. Does the account close in October? November?

Are there any fees associated with the account? This is important because the fees can offset any interest you’ve earned, making the account essentially void. It becomes nothing more than a safe place to put your money.

Finally, can you add money to the account with direct deposit? When you can automatically have a predetermined amount deposited into your account each week, it makes saving extremely easy. Instead of having to set aside money and go to the bank each week, the money is taken from your normal account.

Christmas Clubs are an effective means for saving for one of the most expensive times of year. A little money set aside each week can mean a world of difference when the holidays roll around.

The post ABCs of Christmas Clubs appeared first on Dr. Cozette M. White.

How frugal you are depends on your lifestyle. In my opinion, all it takes to be considered frugal is to think before you purchase something. You can simply turn down the heat at night and save a little on your utilities to be frugal. You can shop sales. You take the time to ask yourself if you really need something.

Being frugal isn’t about washing out ziplock baggies and reusing them. It isn’t about grinding your own wheat or collecting rainwater. It isn’t even about that sweater you didn’t buy. It is about thinking before you spend. It is about conserving what you have. It is about saving money and managing your finances.

And every household has different finances. We all have different goals. It may not look frugal to you for my family to have a $50,000 pick-up truck. But when we need it to haul cattle to and from market, it becomes a necessity. We make up for it in other ways. We buy our cattle feed in bulk in order to save money. We take care of what we have so that it lasts longer.

The point is that every household has to look at their own situation and then decide where they can – or need to – become more frugal. Frugal living doesn’t mean doing without. It doesn’t mean that you don’t have what you need. In fact, it means the opposite.

Frugal shoppers are careful. They take care of their money and make the most of it. Many frugal shoppers actually have everything they want and the satisfaction that it doesn’t hurt them financially. They spend time to make wise decisions. They learn how to make their dollars really work for them, instead of against them. They have more for less money.

Frugal living is about reducing what you spend, living within your means, using what you have and taking care of your belongings, including your money. It is about making goals and working to reach them. Which would you rather be: the person who decides when and where to spend his money or the person whose money is spent before he makes it?

Take the time to look at how you spend. Your spending is more important than your income. You can make $100,000, but if you spend $120,000, you are in trouble. It will eventually catch up with you. You have to spend less than you make, and that is what being frugal is about. Living with what you have. It is easier to spend less than it is to make more. It is easier to be frugal than to juggle credit cards and lenders. Find the frugal methods that work for your family and start saving today.

The post Adapting Frugal Living To Fit Your Lifestyle by Cozette M. White appeared first on Dr. Cozette M. White.

Living below your means is more a matter of self-discipline.  A few adjustments here and there could be all it takes to have the necessary funds available for saving and investing.

Some mutual funds can be opened up for as little as $200 with minimum contributions around $50.

Here’s a list of ways to save money by spending less.

*Open up bank accounts that have little or no service fees.  Keep a cushion to avoid accidental bounced checks. These only can keep you in debt, real talk!  Be sure to maintain your minimum balance to avoid service charges.

*Try to avoid banks that charge you a transaction fee for using their debit cards.  I recently read a post by Patrice C. Washington – The Money Maven, that the average frequent ATM user spends $500 per year on ATM fees.    That’s a lot of money that could actually pay off a bill.  If you have no choice, plan how much money you will need in a given period and then withdraw it all at once to avoid too many transaction fees.

*Compare credit cards. Look for the ones that have little or no annual fees. It’s not too hard to find those with no annual fee.

*Avoid specialty store charge cards as they often have interest rates six or seven points higher than major credit cards.

*Never choose a card based solely on incentives or reward programs. These include auto reward points and air travel miles. These cards may lead you to spend more money over time than you can afford.

*Most importantly, avoid unnecessary interest charges by paying off the complete monthly balance. You can avoid hundreds of dollars in interest expenses on an annual basis.

*When you buy a car, consider buying one that is one to three years old. A one-year old car will be about 20% to 30% less than a new car. A three-year old car is a good buy because it could be around half the price of a new car. A car depreciates the most in its first three years. After that the depreciation levels off and it will lose less of its value.

*Another good saving when buying a used car is you will pay less for the insurance.

*When going on vacation, consider staying in your home state instead of long distance trips or even international travel. It’s often cheaper to travel within your own borders, that way; you avoid visa and passport costs, border hassles, currency exchanges, tropical shots, medication, and additional health insurance. Frequently, people travel thousands of miles to see sights not nearly as spectacular as what is next door.

*You should consider off-season vacations. Travel at a time when everyone else is at work or school, and the staff will actually be glad to see you. You may also save 50% or more on the usual travel expenses.

*Avoid large cities and tourist traps; you’ll save a ton by avoiding these places, where you pay more to eat, drink, sleep, and travel. If you do decide to visit a big city, consider accommodations in a smaller town close by.

*If you have a lot of credit card debt at high rates, look into consolidating your debt at a lower rate.

*Refrain from making impulse purchases. Exercise self-discipline.

*Refinance your mortgage or debt at a lower rate.

*Refinance your car loan at a lower rate.

*Shop around for cheaper car insurance rates.  There can be a big difference.

*Lower your phone bill by using self-control on long distance calling.

*Use a phone card for long distance or international calls.

*Use coupons when you shop.

*Don’t buy things just because they are on sale.

*Wait for things to go on sale before buying them. Keep a record of when things go on sale.  Some items will seasonally go on sale. Ask stores when certain things will go on sale.

*Buy generic or non-name brand merchandise. Most times the quality is just as good.

*Stop smoking. This habit is extremely expensive.

*Contribute the maximum each year to your 401K or to an IRA.

*Remember, paying down debt is also a way to save money.  If you can make extra payments on your mortgage or go for a 15 year mortgage instead of a 30 year mortgage.  The savings are enormous.

*Reduce the number of times you eat out. Oftentimes eating out at a restaurant involves paying a lot of money for over-priced and over-sized meals.  For healthy meals and to save money, eat at home.

*Watch videos or DVDs at home instead of going to the movies.  Pop your own popcorn instead of paying a lot for theater popcorn.

*Evaluate your entertainment and recreational activities.  Many are very expensive to participate in. There are many others that are just as fun and entertaining that are at the fraction of the cost.

*Don’t try to compete with your friends and neighbors.  Sometimes, an apparent prosperous lifestyle can be an illusion. Those illusions come with a lot of debt.  It’s much better to have peace of mind.

Be alert. There are always ways to save money.  Soon you will yourself with money you never knew you had.  The key is to put that money to work for you instead of spending it.

Cozette M. White is the Money Coach at www.CozetteMWhite.com.  Follow her on Twitter at @cozettemwhite for practical tips on getting financially fit.  She is also on Facebook at www.facebook.com/cozettemwhite.

The post Creating Surplus Cash For Savings and Investments by Cozette M. White appeared first on Dr. Cozette M. White.

Here are a few ways to save energy in your home:

1) Windows and doors: Today’s architecture takes advantage of increased window space and elaborate entry systems. This style enhancement certainly adds to the appeal of a home, but it increases the importance of having energy-efficient windows and doors.

On average, a household spends nearly 50 percent of its annual energy costs in heating and cooling. You can reduce this expense by up to 15 percent by using energy-efficient                      windows and doors, which help decrease the transfer of heat. Start by looking for products that have the Energy Star label. This label identifies products that meet the strict energy-efficiency guidelines set by the U.S. Environmental Protection Agency and the U.S. Department of Energy.

2) Construction materials: Wood or vinyl (for windows) and steel (for doors) offer high energy efficiency. For windows, dual-pane insulating glass units and low-emissivity glass also increase the products’ energy efficiency. For steel doors, look for a polystyrene core, which helps the door retain its energy-saving properties longer than steel doors with a polyurethane core.

Rest assured, however, that you will not have to forgo style and beauty when seeking energy efficiency. Many manufacturers, such as Jeld-Wen Windows and Doors, offer a variety of Energy Star-qualified products that are attractive, durable and provide superior performance. In fact, upgrading windows and doors is a great way to build energy savings into your current home.

3) Insulating your home: In addition to diminishing heat transfer through windows and doors, you can ensure even temperatures in the home by selecting proper insulation. Well-insulated homes can save up to 30 percent on heating and cooling costs. Pay attention to the R-values used to rate the energy efficiency of insulation – a higher R-value indicates a better ability to resist heat flow, meaning that it is more energy efficient.

4) Heating and cooling engines: Installing oversized heating or cooling equipment is a common practice to provide customers with immediate results. However, oversized equipment is not necessary if your home is designed to conserve energy; it will only add to the growth of your energy bill.

Visit a local home improvement center to learn more about heating and cooling options.

Cozette M. White is the Money Coach at www.CozetteMWhite.com.  Follow her on Twitter at @cozettemwhite for practical tips on getting financially fit.  She is also on Facebook at www.facebook.com/cozettemwhite.

The post Building Long-term Energy Savings Into Your Home by Cozette M. White appeared first on Dr. Cozette M. White.

But if you are guided with the right principles and reasons in deciding to live a frugal life, you would never go wrong.

If you have decided to live frugally, no need to be worried of insults. Keep your head up high. And keep your focus through these tips.

1. Eating Out – Having gimmicks with friends on a Friday night is fine if you do it once in a while. But this can be expensive if you add them up at the end of the month.

2. Clothing – Naturally, if you are the kind of person who adores signature and designer clothes, do not expect that there will be something left of your take home pay. Instead of being trendy, wear clothes that can easily be matched with your other clothes.

3. Own Home – If you are planning to move out and find a place to settle, do not be overwhelmed by the excitement, instead be practical. As a start, buy a smaller house or try other ways like rent-to-own, do-it-yourself arrangements, and owner financing.

4. Buying Your Own Car – Shy away from sports cars or SUVs.  Just stick to your purpose of buying a car which is to transport you anywhere you need to go. Check out also program cars like a new car warranty.  Maybe this is not just the best time to replace your car with a new one.

5. Shopping for Groceries – As much as possible do not go with items that are branded. Choose non-brands and try looking for items on the highest or lowest shelves for best prices. Grab the opportunity and shop during sales or use coupons.

6. Family Out – There are inexpensive ways to bond with your family and be entertained like going to libraries, local parks, malling, picnics, visit friends and local church.

7. Buying School Supplies – Stock school supplies at home and do not buy anything fancy.

8. Be contented with what you have and try to live within what you earn.

9. Plan your Child’s College Education – Teach them the ways to be independent and self-supporting by encouraging them to apply for scholarships and “on campus jobs”.

10. Be Aware of your Financial Limitations

11. Anticipate your Failures by Planning – Have always a budget plan so you would avoid impulsive buying.

The post A Frugal Lifestyle by Cozette M. White appeared first on Dr. Cozette M. White.