Contributor, Author at Smart On Money

Saving Money On Video Games For A More Frugal Gaming Experience

If you are at all connected to the Internet, you understand that gaming has become a vital part of our economy. Top manufacturers like EA, THQ, and Rock Star have cemented themselves in the gaming industry and procured licenses that generate a ton of revenue for clients such as the NFL, MLB, and WWE. In order to make money off of their expensive licenses, however, they have to start charging consumers more money to play the games.

What if there were ways to save money on your gaming needs instead of constantly racking up credit card bills and feeling like a consummate consumer every day? Consumers often fall into hidden traps and holes when it comes to their video game dollars. Here are some ways you can get the most entertainment out of your video game budget without raising your checking account rates:

Saving Money On Video Games

Buy Used Titles

If you are just getting into video games, you may be shocked that the latest titles can run you in excess of $60 a pop. In order to avoid paying these premium prices, you can visit a variety of retailers to purchase the latest titles for less money because they have been opened already. Stores like Best Buy, Gamespot, Amazon and others will sell used games at a lower price. Buy used instead!

GameFly

The worst feeling in the world is purchasing a new video game only for it to be awful. Spending any kind of money and then receiving a lackluster game can make the most die-hard gamer feel a little used. Instead of purchasing games as they come out, sign up for Gamefly. By subscribing to the service you can receive games in the mail for as little as $7.95 a month. Other services like Redbox kiosks will also allow you to rent a game at a fraction of the cost. Rent instead!

Download Emulators

One of the best eras in gaming is the original NES and Sega Genesis days. Games were simple and easy to figure out, which provided a lot of fun for everyone. Today if you want to play Super Mario or Sonic the Hedgehog, you are going to have to get a Wii or spend a bunch of money on eBay where the consoles have become collector's items. By downloading Roms and emulators you can play these classic games for free on your own computer. Play free classic games instead!

Stay Out of the Controversy

According to the Cato Institute, the government has been trying to legislate video games for the longest time, they feel like they have a right to tell parents and families what is best for their kid's safety when it comes to video games. According to many, however, video games haven't been shown to have any link towards violent or abberant behavior – in some cases the opposite is true.

No matter what political stance you take on this issue, more controversial games are going to have higher prices because of their high profile and because of supply and demand. Try playing some less controversial games!

Buy for Education!

If you think video games are a waste of time, you may not be completely on target. The United States Military uses simulations from the leading game manufacturers in order to train soldiers and prepare them for real combat operations.

Think interactive video games are a waste of time or more suited for children? Think again. Research under way by the Office of Naval Research indicates that video games can help adults process information much faster and improve their fundamental abilities to reason and solve problems in novel contexts.

By purchasing titles for your children, you are making an investment in their education! Just think about all of the problem solving capabilities they will develop from playing complicated games.

While gaming is not for everyone, the popularity of gaming is continuing to grow with the biggest game titles making more money than Hollywood blockbuster movies! Games are leaving their mark on the overall economy.

Major gaming companies will continue to charge so much for their products simply because people are buying them. In order to save money on your games, shop smarter and do your research before committing to anything.

Have your own tricks for saving on video games? Tell us in the comments.

Paying For Your Child’s College Tuition

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It should come as little surprise that college tuition costs are incredibly high and that, over the past couple decades, they have risen far faster than the rate of inflation. For the average family – and even for the more economically-secure one – paying for college is a tremendous and considerable investment, one that cannot be adequately done without years of planning and foresight. According to estimations, the cost of raising a child from the age of birth to 18 can be doubled in some cases when college costs are included.

Faced with these costs, most families choose not to pay for their child’s post-secondary education, instead working to provide assistance and support as their son or daughter amasses student debt and then works to pay off their loans. For many families this approach is the far more practical and feasible one. Others, however, take a stop-gap approach to college costs, meaning that they don’t plan adequately and must resort to selling the family jewels and amethyst rings to cover tuition when the time arrives.

College Costs

If you have college-bound kids, and if you are planning to be the primary contributor to their tuition costs, there are practical means for saving money towards college and for reducing the bill. Here, then, are some tips that every parent in this situation should keep in mind:

Start Saving At Birth

On a long-term basis, planning for college should be similar to saving for retirement. On that note, you’re going to want to have a college savings fund for your child into which you put regular contributions. This fund should be opened at birth and closely watched and maintained, just as you would a retirement account. Furthermore, by putting the money into an account specifically set aside for college, you can avoid paying taxes on much of the money and realize higher rates of interest.

Share The Responsibility With Your Child

Even if you plan to pay the majority of college costs, your child should still contribute towards the effort. During high school, perhaps, the money earned from your kid’s summer jobs could go into the fund. Once they arrive at college, you may want to have them explore a work study program that helps reduce their tuition. The actually approach is one that you should determine as a parent and discuss as a family, but the bottom line is that it’s important for your child to be involved in the process – and to contribute towards it.

Pick Cost-Cutting Payment Plans

Most colleges and universities offer several different payment plans for tuition, and most of these include plans where your overall costs are lower if you pre-pay for each semester in installments. There is no reason not to do such a plan; after all, if you have the ability to pay for your child’s college education, you have nothing to gain from postponing the payments and taking on debt.

Get The Tax Rebates

The federal government offers rebates and other tax incentives for costs relating to a college education. While these sometimes vary from year to year, the vast cost of college means that the tax savings can be considerable.

There are certainly other methods and tricks for saving for college and for reducing the costs once your child has enrolled. But the ones listed above should be some of the most helpful and important ones to use if you’re a parent. Saving and paying for college is a mammoth undertaking, so it’s always best to be prepared.

Navigating Black Friday With Your Android Smartphone

By Contributor 1 Comment

Black Friday is nearly upon us. It’s the one day in the year where you can find outrageous deals on cell phones, clothing, furniture, and just about anything else you’d ever want to buy. The prospect of the busiest shopping day of the year is intimidating if not outright terrifying, and most are content to sleep in and eat Thanksgiving leftovers rather than brave psychotic shoppers and endless lines. But for dedicated shoppers, the promise of a bargain is too tempting to pass up. Android users already know that a smartphone is a valuable shopping assistant, but you can get even more out of Black Friday with the help of some specialty apps.

black friday shopping apps

Black Friday App

First up is an app that lives up to its name. The Black Friday app gives you a peak at all the local Black Friday bargains that retailers have made public. Even more appealing are the “leaked” deals; unofficial and rumored super deals that aren’t actively promoted by retailers. Whether or not these “leaked” deals are merely a marketing gimmick (hint: they are) doesn’t mean that you still can’t save loads of money by taking advantage of them. The Black Friday app’s other draw is its social component, letting you share and discuss deals with other shopping fanatics through Twitter and Facebook.

TGI Black Friday

Another aptly named app, TGI Black Friday posts local and online deals in a simple, easy to read list that is constantly updated, hooking you in with the possibility of a perfect bargain just around the corner. This app posts coupons that will appear in your local paper early, giving you a head start when you plan your Black Friday strategy. You can even use this app to send printable .pdf coupons straight to your e-mail. When used in conjunction with the Black Friday App, TGI Black Friday will ensure that no deal slips past your radar.

Redlaser Barcode and QR Scanner

With all the discounts that go on during Black Friday, it’s inevitable that some unscrupulous retailers will try to scam you with fraudulent deals. Be wary of “deals” that are the same, or even more, than the normal price. Having a trusty barcode scanner is the best way to see if a bargain is the real deal (pun intended). There’s many good barcode scanners to choose from, but Redlaser is better than most, giving you instant price comparisons from major retailers like eBay, Amazon, and Best Buy.

Discount Calculator

Another trick to watch out for is retailers who make deliberately complicated discounts to make it hard to figure out exactly what kind of value you’re getting. Download Discount Calculator for free. Just enter the original price and use a simple slider bar to determine how much you’re actually saving in simple dollar amounts.

discount calculatory app

Shop Until You Drop Pro

Have you ever dreamed of actually making money while you shop? No, it’s not just a wild fantasy. Companies often employ what are known as mystery shoppers, undercover customers whose job it is to anonymously test how friendly and helpful a store’s staff is. Companies are especially prone to using mystery shoppers on Black Friday in order to see how staff responds under the pressure of the busiest shopping day. Shop Until You Drop provides a list of available mystery shopper gigs. Download it if you think you have what it takes to go undercover. You’re sure to get some good stories out of it, not to mention a few extra bucks.

Black Friday is a battleground where only the dedicated bargain hunters survive. Don’t go into battle unarmed. Load up your Android with these strategic apps and keep your eyes peeled for deals.

Reduce Your Debt And Save For Retirement

By Contributor 4 Comments

As an investor, you are constantly trying to stay on top of your personal finances. Two of the biggest and most daunting goals you may face are paying off your debt and saving for retirement.

For young investors, retirement may seem to be a vague and far away goal, causing some to lower or stop retirement plan contributions altogether in order to have enough money to reduce their current debt. You may be asking yourself, “How can I possibly pay down my debt while saving for retirement?”

debt and retirement

Of course, there is no one-size-fits-all answer regarding how to balance your debt repayment strategy with your retirement savings strategy. Everyone’s situation is different, but here are a few guidelines that can help with your financial questions:

If your company offers a 401(k) plan with a matching contribution, then continue your retirement plan contributions as long as it’s financially possible. An employer match provides a return that is hard to beat, so avoid stopping your contributions to pay down your debt. Passing up your company match is basically saying no to free money. The benefits of compounding and dollar cost averaging both depend on long-term investing.

Make sure you take time to evaluate your spending habits and tighten your budget accordingly. By structuring your budget, you can make sure you are contributing enough to take advantage of your company match while at least paying the minimum amount on all your debts to avoid late fees. If you have to reduce some monthly bills, such as internet or cable to have enough to pay off your debt, then find a way to do that before jeopardizing your financial future. Although having the best cable and internet package may provide you great entertainment, it’s important to value your long-term goals more than your immediate gratification. However, if you must reduce your 401(k) contributions to have enough cash flow to reduce your debt, decrease them by as little as possible.

Most importantly – try to prevent additional debt in the future. Think twice before purchasing something that is not a necessity and review the financial consequence it may have on your expenses. Also, consider creating an emergency fund. The thought of putting aside more money may be unpleasant, but an emergency fund will help you from falling into debt again. You never know what the future might bring, so it’s always better to be financially prepared for the unknown.

Use a 401(k) contribution calculator if you are concerned about your take-home pay after contributions. You may be surprised to find that your plan contribution does not affect your take-home pay as much as you would think. Remind yourself that you are making pre-tax contributions and the amount of taxes withheld will be reduced.

The best solution for someone struggling with debt and trying to save for retirement is finding a happy medium between the two. Although decreasing your take-home pay may not be an ideal situation while paying off your debt, you will regret not at least taking advantage of your company match. Your employer match is an immediate return on your investment. Start contributing today, if you haven’t already.

Scott Holsopple is the president and CEO of Smart401k, offering easy-to-use, cost effective 401(k) advice and solutions for the everyday investor. His advice has been featured on various news outlets, including FOX Business, USA Today and The Wall Street Journal.

4 Crucial Tips To Help You Save For Your Next Car Purchase

By Contributor 12 Comments

Buying a new car requires planning and forethought. I am against leases and “zero-down” offers; these teaser promotions offer no benefit to you, but plenty of benefits for the dealerships. Dealers add an astounding amount of interest payable over the life of the car loan, mitigating any savings from an introductory promotion.

Instead of financing a new car purchase, you can save your money, and buy a car with cash. Here are four important tips to help you save for your new car purchase:

save up for your next car

1. Don't Buy a New Car When You Pay Off Your Current Auto Loan

Many people seem conditioned to believe that as soon as they pay off one auto loan, they need to buy a new car. This kind of thinking leads to unnecessary debt, and it's why so many people end up with an upside down car loan.

I reached the age of 35 before I experienced life without a car payment – a dream come true. Once I stopped writing a monthly check for $300, I started building my savings. Today, I am still driving the car that I paid off eleven years ago, and I can pay for my next car with cash. You too can significantly improve your financial situation, and save for your next car purchase by saving $300 each month.

2. Continue to Make Your Car Payment

Even after I paid off my car, I kept the mindset that I still had to make the $300 monthly car payment. I placed the $300 surplus into an investment account, earning 4% interest. The total return on my monthly deposit, which I made for seven years, was substantial.

It takes a great deal of discipline to take “found money” and place it into a savings or investment account. When I have additional money available after paying off any type of loan, I don't think of the money as “found” or “extra” income. Instead, I continue to pay all or a portion of the monthly loan payments into a savings or investment account, to save for big purchases, and for my future.

For this to work, you have to begin depositing the loan amounts into a savings account immediately after paying off a loan. Otherwise, the money will get swallowed up by your other expenses. One month before you pay off the loan, set up the savings or investment account. When you make the final loan payment, set up an automatic transfer for the monthly loan amount. This “payment” should go from your checking account directly into your savings or investment account each month. This way, you can continue to budget around the monthly debit, and save money, without risking the reallocation of the funds.

3. Research Before Buying a New Car

Once you can afford to buy a new car, begin researching your purchase. You can do most of your research online before you visit any car lots. Seriously consider whether you really want or need a brand new car, and review options for used cars.

Contact dealers via the Internet to ask questions and to eliminate some trips to dealerships. You should know the exact make and model of the car you want to buy before visiting any dealerships. Research dealership pricing online to have a base idea for the sale price of the car you want to buy. Lastly, consider actually buying a car online. You can buy cars from eBay Motors, and many dealerships have Internet sales managers. You can often negotiate a better price online, and when you complete the online deal, you can pick up your car.

Also consider buying a used car from an individual instead of buying from a dealership. The dealerships inflate prices, so you can often find a better deal when you buy directly from a person. If you have reservations about buying a used car, buy a model that is still under manufacturer's warranty and have a trusted mechanic check out the car for any potential problems or issues.

4. Make Short-Term Sacrifices

Make short-term sacrifices to save for a big purchase. For example, I love going to baseball games. Buying tickets for a ballgame, paying to park, and purchasing refreshments can cost over $100. When I commit to saving for any major purchase, I forgo baseball games for six months, or until I reach my goal.

However, if I wanted to save $5,000 to buy a car, I would have to do more than just give up baseball for a season. What could I do to save $5,000 in twelve months?

Stop going to baseball games for one season, for a total savings of $500.
Stop buying new clothes for one year, a savings of $50 a month, for a total savings of $600.
Reduce my satellite TV package by $20 per month for 12 months, for a total savings of $240.
Downgrade my current Internet service for six months, for a total savings of $240.
Continue to make my monthly $300 “car payment” after paying off the loan for my current vehicle, for a total savings of $3,600.

If I continue to make my $300 “car payment” for one year, stop going to baseball games, stop buying new clothes, and cut back on my satellite TV and Internet services, I could save up to $5,180 by the end of the year, plus interest. Remember, short-term sacrifices don't have to be permanent. Keep your end goal in mind, and focus on the benefits of saving while you try to save for a new car.

Final Thoughts

I paid my car off eleven years ago. If my car dies tomorrow, I can easily replace it with my savings. I planned carefully, saved money through various means, and made short-term sacrifices. Now, I am in a position to buy a new car with cash.

By utilizing some of these tips, you can save enough money to buy a new car. What other ideas do you have to add to your car fund?

David Bakke writes about his life and money topics on Money Crashers, a personal finance blog focused on helping readers better manage their money and grow wealthy.

How To Avoid Debit Card Fees

By Contributor 7 Comments

Last year congress passed a bill that empowered the Fed to cap the fees large banks charge retailers for debit card transactions. As a result, big banks have lost a significant source of revenue and have responded by increasing the fees they charge their customers.

By now you have probably heard all the commotion caused by Bank of America’s announcement that they will begin charging a $5 monthly fee to all their debit card customers. The fee will go into effect in the new year and it’s reported that other big banks will soon follow. While changing banks is one way to avoid the newly imposed fee, there is nothing preventing your new bank from adding a debit card fee, too.

So here are a few ways you can guarantee you won’t be hit with a debit card fee:

avoid debit card fees

Cash

One way to beat the fee is to adopt a cash only policy. This method of money management has been around since the beginning of time and some think it’s the best way to manage your money. The financial guru’s we know and love like Suze Orman and Dave Ramsey both have stated time and time again that using cash is better than using any sort of plastic. There are no interest charges and sometimes just seeing your money leave your wallet is enough to keep your spending in check.

Credit Cards

While some think credit cards are just plain evil, there are may perks to paying for your purchases with a credit card. For one, you can avoid the Bank of America fee and you can also save yourself some money if you use a cash back credit card. Getting the most out of your card requires being responsible with your spending habits and always paying your balance off each month. You can also build your credit with a credit card and many cards offer warranty programs to protect your purchases.

Prepaid Cards

Prepaid cards tend to get a bad wrap. They have a reputation of catering to people with bad credit and those who can’t obtain a traditional bank account. It appears the times are changing and now people of all credit ranges are using prepaid cards as a way to manage their spending. Prepaid cards require the user to load money to the card before making a purchase. As a result, the account can’t be over-drafted because you can only spend the amount on the card. Some of the best prepaid cards come with no or limited fees. And because prepaid cards were excluded from the Fed’s action on debit cards, it’s unlikely that banks will starting increasing the fees on these cards.

Credit Union

Some people swear by Credit Union’s because frequently they offer lower rates and have a tendency to give more personable service than the big banks. Credit Unions are also able to avoid some of the red tape with their long time customers which makes borrowing a much simpler process. They provide many of the same services banks provide, but often with no fees or significantly lower fees.

This is a guest post from Michal who is a senior editor at Dough Roller and Credit Card Offers IQ.

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