Last Chance to Win

This is the last week of the PFStock iPad (or $300 Amazon gift card) giveaway. PFStock is giving away your choice of an Apple iPad mini or $300 Amazon gift card. Over the years, PFStock has given away coupons, Coke Rewards codes, USB flash drives, books, financial software, gift certificates, and copies of tax software. Now in order to thank my loyal readers, PFStock is holding its biggest giveaway ever: your choice of a new Apple iPad mini (16GB, WiFi version) or a $300 Amazon gift card!

Update: This giveaway is now over, and a winner has been selected. The contest winner has been notified by Email. Thank you for your interest in PFStock.

If you have a problem leaving a comment or any other question, please Email me. Good luck to everyone!

PFS

Win an iPad

PFStock is giving away your choice of an Apple iPad mini or $300 Amazon gift card. Please see this post for more details. In addition, I am offering 25 additional entries to readers who complete any of the following offers:

Open an account at Ally Bank
Apply for the Discover it™ Card
Get the Discover® it Card for Students
Switch to TradeKing and get up to $150
Join PerkStreet and earn 2% cash back
Get $100 from ShareBuilder

Update: The iPad giveaway is now over. However, I am planning to have another giveaway (iPad or Amazon GC) later in 2013. For any reader that completes one of the above offers (most are free to apply), you will automatically receive 35 entries in the future giveaway. Let me know that you applied for an offer by sending me an Email or completing the form below:



Note that PFStock does not collect any personal information other than what you voluntarily submit on the entry form. The sponsors do not share applicant data with me, other than the offer type, date and time. I do not even know the names of people who apply for the offers. Please Email me (at the address in the sidebar) if you have questions, or would like confirmation of your entry. Thanks!

PFS

Creating a Budget and Sticking to It

When it comes to money and household finances, in some respects things differ from home to home. However, in one area at least, there is a common need and that is for budgets to be made regularly and cohesively to ward off any chance of expenditure exceeding income, which can lead to debt management problems.

Budgets are an essential part of households' financial planning because it allows you to clearly see what your main expenses and incomes are as well as what can be cut and what can't. At a very basic level it ensures you aren't overstretching yourself and storing up problems for yourself later down the line and offers a simple and easy way for families to see their financial comings and goings. It doesn't particularly matter whether this is done simply with pen and paper or on a laptop, all that matters is that you stick to the basics and make it workable for you.

Be realistic
The first thing to do, ahead of your budget, is to be fully realistic about what you can expect to achieve from month to month. There is no point in being overly harsh on yourself and stressing out too much about your finances but at the same time it's not good to take a laid back approach to finances. Finding that middle ground where you are setting achievable targets each month for yourself and members of your family is key and, while you may not get there overnight, in the end it will be worth it.

Allow wiggle room
Also, when setting your budget, remember to factor in a little bit of flexibility. Don't set yourself a specific amount of money to target such as £100 off the credit card bill, instead it's better to opt for a target of between £95 and £105. This way if you have a month that is either heavy or light on expenses then you can still meet your targets and make headway without causing yourself too much stress and trouble. Not every month is going to have the same level of expenditure and allowing yourself a little bit of room to manoeuvre is a really good idea within household budgets.

Reward/punish yourself
Another thing that many households like to incorporate into their budgeting is offering a treat, or indeed a punishment, if they don't meet their set targets. This obviously needn't be too serious but it could be a case of allowing yourself a treat once a month if you manage to pay so much money off your credit card or energy bill or not doing so if you don't. This adds a human angle to budgeting and provides that little bit of extra incentive to meet the targets you have set yourself.

All these sorts of targets can be quickly implemented into household budgets which is ideal when you think that Christmas is now firmly on the horizon. Indeed, recent research from Morrisons appears to show that many people are looking to take budgeting much more seriously this festive season than ever before. The supermarket found that Brits are planning to reduce the amount they spend on the Christmas experience by an average of £28 per household when compared to last year’s spending. More than a third of families will be looking to cut back on presents while a fifth of families plan to spend a little bit less on items such as chocolate boxes and biscuits, all so as to ease the financial burden.

According to Kevin Mountford, spokesman for Moneysupermarket.com, austerity measures brought in may hit people hard over the Christmas period. "There was a report at the start of this year which said that because of the austerity measures in play, each household would be around about £1,000 a year worse off," he said. "We knew that some of the plans were back-ended and as we move out of 2012 and beyond, we're going to start to see the impact. It is becoming even tougher.
"It is not just low-income families that this is starting to bite as we come into the Christmas and winter period. We're going to have to look a little bit more tightly as we are going to have to improve outgoings elsewhere."

About the Guest Author
This is a sponsored post. The opinion expressed is that of the sponsor.

iPad Mini Giveaway - Money Saving Tips

Did you know that that the blog PFStock has been around for over 6 years? My original blog is still being published at ( pfstock.blogspot.com ). Over the years, PFStock has given away coupons, Coke Rewards codes, USB flash drives, books, financial software, gift certificates, and copies of tax software. Now in order to thank my loyal readers, PFStock is about to hold its biggest giveaway ever: your choice of a new Apple iPad mini (16GB, WiFi version) or a $300 Amazon gift card!

Update: This giveaway is now over. A winner was selected and notified by Email. Please click on iPad Giveaway above for the latest contests. Also see Reader Submitted Money Saving Tips for the best entries sent in. Thank you for your interest in PFStock.

I am holding this giveaway in order to increase awareness of and traffic to my blog. I am asking readers to comment and to link to PFStock. And I am giving you the opportunity to win a great prize in the process. While I think that the Apple iPad mini is a great product, I would personally choose to get a Samsung Galaxy Tab with the Amazon gift card, and pocket the difference. Nevertheless, I know a lot of people like iPads, so here is some more information about the Apple iPad mini.

iPad mini Features:

• Dual-Core A5 Chip
• 7.9 inch display; 1024 x 768 resolution
• 5MP iSight camera, 1080p video recording
• Wi-Fi, 16GB capacity
• Up to 10 hours of battery life
• Weighs only 0.69 pounds

I will be holding a random drawing for the grand prize, which will be held on December 20, 2012. You can enter in several ways, and have up to 10 chances to win:

1) Any reader can post a comment below describing your money saving tip (1 entry). Here are some of the ideas that readers submitted last time:
http://www.pfstock.com/2011/02/reader-submitted-tax-and-money-saving.html
NOTE: This step is required. If your comment doesn't show up below, your entry will be discarded.

2) Post an INTELLIGENT comment on any other post on PFStock.com or pfstock.blogspot.com (1 entry).
If you are looking for posts to comment on, here are some suggestions:
The Cost of Print Magazines
How Much Do You Make?
Are We Supposed to Feel Sorry for This Person?
Finding the Best Credit Card for You
Comparing Brokerages
Are Credit Unions Really Any Better Than Banks?
What's the Best Gift Received from a Bank or Brokerage?

3) Link to PFStock.com using Facebook and/or Twitter (1 entry each).

4) Fellow bloggers can link to this post to let other know about the contest (1 entry).

5) Add PFStock to your blogroll or website homepage (5 entries). Also if you run a bona fide personal finance (PF) blog, please contact me (my Email address is in the right sidebar) with your URL and I can provide a reciprocal link to your blog.

You can enter up to 10 times using the the form below:



If you have a problem leaving a comment, please Email me. If the entry form doesn't show up, please cut and paste this link to go to the form directly:

https://spreadsheets.google.com/viewform?formkey=dEo3ZXRneGRvZG5RZUpmM1A0a29JZ2c6MA

RULES:
1) You can enter more than once, however each entry must be accompanied by a new, different comment (required).
2) Any comment that is fraudulent, illegal, obscene, or otherwise inappropriate will be deleted and/or any prize awarded will be forfeited. Do not spam my blog; the sponsors, advertisers, and I don't appreciate it.
3) NO PURCHASE NECESSARY. You don't need to buy anything to participate.
4) The drawing is limited to US residents, 18 years or older. A winner will be randomly picked from among the qualified entries received by December 20. The winner will be contacted by Email.

Please Email me (at the address listed in the blog sidebar) if you have any questions. Good luck to everyone!

PFS

This promotion is held in conjunction with pfstock.blogspot.com. There may be other ways to enter.
Note: PF Stock does not provide financial advice. Contact a financial advisor if you have questions. Opinions expressed in the comments are those of PFStock readers.

4 Ways That Austerity Can Improve Your Life

Austerity has become a dirty word in Europe after increased suppression of spending has resulted in astronomical unemployment rates. While we like to blame these issues on the current austerity measures, we should be looking at the irresponsible spending that preceded it as the root cause of the suffering. More importantly we can take this macro-economic issue and apply it to our own personal finances to avoid similar disasters in our own lives well before the going gets tough. Avoiding overspending, or more specifically under-spending, has some major benefits besides just keeping you out of debt. There are a lot of articles all over the internet about how to save money and how to avoid spending over about $20,000 a year. However, nearly all of those are specifically geared toward helping you get out of debt once you're already in trouble. Here are a few great reasons you should want to under-spend even when you're doing well financially:

1. The "Rainy Day" Fund
The first thing that happens when you stop spending your money is that it'll suddenly start piling up in your bank account. If you've been spending your entire life (because it's there!) this will feel strange, possibly a little threatening as though you're forgetting something. The other thing you're going to feel is a sudden unflinching of your stomach that you didn't know was there. If you get into a car accident, break your arm, or have the roof of your house collapse in during a rainstorm you're no longer going to have to go into debt to deal with it.

2. Large Savings Rate = Less Comfort But Less Stress
As money continues to pile up in your savings account you'll begin to wonder why you're not spending it. You might be tempted to get a new car, or move into a nicer apartment, or make a nice down-payment on a house. You'd be wrong to do so (unless the mortgage is about the same as your rent, then it’s smart). If you keep the comforts far away you’ll find that your money keeps growing. At this point you can start referring to your savings as your retirement fund.

3. Early Retirement/Financial Independence
Depending on how much you make you'll find that within a decade or two you've saved up several hundreds of thousands of dollars. If you invest it properly at this point the revenue generated by the money you have will be enough to live on, meaning you're ready to retire. If you're just finishing college as you read this and starting your first real job, that means that you could retire as early as your mid-thirties contingent upon how much money you make during that time. That means financial independence while you're still young enough to properly enjoy it.

4. Wealth (Sort of)
If you decide to keep working past the point where your investment makes just enough to support you, you'll get to the point where your investment produces more than you need. If you don't spend it, but instead add it on to your investment continuously the amount of money you make will continuously grow for the rest of your life.

About the Guest Author
Alan Brady is a real estate and financial enthusiast who loves to blog about personal finance, renting, home ownership and responsible practices for mortgage lawyers.

Flex Spending Accounts for 2013

It is that time of year again when companies hold their annual open enrollment. This is when employees have the opportunity to change medical or dental plans, and to opt into making contributions to a flexible spending account (FSA). In general, a flexible spending account allows one to deposit pre-tax dollars into the account to pay for medical expenses, or to pay for dependent care. (Note that these are two different types of accounts.) The ability to use pre-tax money to pay for expenses is a good benefit that can save you money.

Starting in 2011, there was an important change to FSA plans. Specifically, the rules have changed for the purchase of over-the-counter (OTC) medicines and drugs (such as OTC allergy medicines, pain relievers, antacids, cough medicine, etc.). This change is due to the federal health care reform law, the Patient Protection and Affordable Care Act of 2010 (PPACA). (This was a part of President Obama's health care reform plan.)

Previously, all of these OTC purchases were covered by flex spending accounts. However, starting in 2011 these OTC drugs and medicines cannot be reimbursed through an FSA unless they are prescribed by a medical practitioner to treat a specific medical condition. So, the bottom line is if you plan to purchase these OTC items through a flexible spending plan, you'd better have a prescription first.

One other thing to keep in mind when contributing to an FSA is that most flex spending accounts operate on a "use it or lose it" basis. This means that any balance you have in the account at the end of the calendar year is forfeited to your employer. This is something that I would rather not do, since I never want to leave any money on the table.

Warning:
In the current economy, I also want to warn my readers of one more potential hazard with FSAs. Having been downsized twice in the last decade, I can tell you that the "use it or lose it" provision also applies if you are terminated without cause (i.e., laid off). Any money that you have left in your FSA plan when you are terminated will be kept by your former employer. This may seem totally unfair, but that has been my real life experience.

PFS

Why Invest in the Stock Market?

If you are new to investing, the stock market can seem like a confusing and intimidating place to put your money. At a first glance, it might seem to make sense to avoid this havoc and just put your money in the safety of a bank account or government bonds. However, if you aren’t investing in the stock market, you are missing out on one of the most lucrative places to put your money. Here are some of the top reasons why you should consider putting some of your money into the stock market.

High Returns
Stocks are risky assets. This means that they don’t guarantee a rate of return and can even lose money any given year. However, while stocks sometimes lose money, their long-term performance is undeniably positive. Over the past 50 years, the stock market has earned an average return of 10% per year, according to the Federal Reserve. Over this same time period, a guaranteed investment like government bonds only returned 5% per year, barely enough to keep up with inflation. If you are going to grow your savings to reach your financial goals, you need to invest in a high return asset like stocks.

Lower Taxes
Taxes are a major drag on your investment return. When your investments earn income, like interest payments from bonds or rental income from investment properties, you need to report this money as taxable income right away. This raises your tax bill for the year and leaves you with less money for investing.  Stocks, on the other hand, can delay the taxes on your gains. If a stock price goes up, your total portfolio becomes more valuable. However, you don’t need to report that growth as income until you eventually sell the stock. This can push off your tax bill for years.

In addition, when you sell a stock for a gain, it is taxed as a capital gain and not as income. As long as you owned your stock for at least one year, the gain is considered a long-term gain. The current long-term gain tax rate in the United States is 15%. The income earned from your other investments is taxed at your personal income tax rate. By investing in stocks, you pay a lower tax rate on your gains.

Liquid Investments
Stocks are also liquid investments. This means that they are quick and easy to turn into cash. If you need some extra money, you can sell off some stock right away. You’ll only need to pay a small brokerage fee and you’ll get your money within a few days. Other investments are not nearly as liquid. If you invested your savings into rental properties instead, your money is locked up. Converting these assets into cash is a long and expensive process. When your money is in the stock market, you won’t have this problem.

The stock market isn't perfect. Many greedy and irresponsible investors have lost money in stocks. However, if you learn how to be a disciplined, smart, and responsible investor, you’ll be able to make the most out of the stock market’s many advantages.

About the Guest Author
Patrik Fonce is a writer and works currently at QuantShare Trading Software.