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Just a quick head’s up: if you have Sallie Mae federal student loans, you may want to get in contact with Sallie and make sure that they didn’t report your account delinquent to the credit bureaus. Apparently the enormous student loan lender accidentally reported 10 million borrowers as being delinquent (they weren’t).

Some borrowers reported that their credit score dropped by as much as 100 points. While Sallie maintains that the mistake only affected borrowers who have graduated payment plans, it may be worth getting in touch with them even if you have a different repayment plan. Sallie Mae intends to fix the problem by the end of the week, and it’s possible that Experian — the national credit reporting agency — could have updated information in their system within ten days. But, if you’re concerned about your credit score, remember that you’re entitled to one free credit report a year.

If you’re one of the 10 million affected, good luck!

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Messages have been circulating this week through text message, email and social networking sites about an organized gas strike for today, May 2nd. I myself have gotten several texts and a forwarded email about it in recent days. The premise of the strike is for everyone to avoid purchasing gas today to show our displeasure with the ever-escalating cost of fuel. Personally, I am all for any type of organized efforts to lower the price of gasoline and if you feel that not purchasing gas today is a way to achieve that, then by all means participate.

My issue with this tactic is that it doesn’t really effect the overall consumption of gasoline at all; since most people will get the gas they need before or after the strike. The key to making a statement (and affecting the bottom line of the oil companies) is not using any gasoline for a day or a weekend. That way, with reduced consumption, comes reduced need and hopefully lower prices. For instance, I won’t be doing any driving today and plan on walking anywhere I need to go; something I need to incorporate more into my daily life anyway. Since this strike was going on today I thought you all might like to hear about it, and act accordingly if it’s something you see as worthwhile.

On the subject of gas prices, I know we’ve mentioned ways to find the cheapest gas around to save money at the pumps, but I’ve recently discovered some additional ways that you can make your money work for you and show savings filling up your tank. Numerous grocery stores run programs where for every $X amount you spend using your store card, you will save 10 cents per gallon at participating gas stations on your next fill up. Both the Price Chopper and Stop & Shop have these programs down where I live, and are interesting options to consider.

Smarter grocery shopping is a great way to save money, but it may also make sense to find which of these (or other) stores has the best prices on the merchandise you want to buy and shop there exclusively. As you spend more at one store, your savings at the pump will increase. Over the course of a month, you could easily save upwards of 50 cents per gallon just by doing your shopping at one particular store. Something you should consider, at the very least - I know I am.

(image courtesy of planebuzz.com)

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I’m sure you all know by now that the gov’ment decided to ship out everyone’s “economic stimulus checks” a little early. In fact, some of you who got your taxes by direct deposit may already be seeing that six hungie in your bank accounts. So here’s my question: what do you plan to do with the money? Pay off credit card debt, go buy a new laptop, horde away some gas or sacks of rice, invest it (maybe by launching a new blog or your own Internet company), or just save up? Are you thinking of spending it at one of the many retailers around the country who are promising incentives if you prove you’re spending your stimulus check with them?

Let’s get some discussion going in the comments section!

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According to a recent MSN Money article, “If you begin saving for retirement at 25, putting away $2,000 a year for just 40 years, you’ll have around $560,000, assuming earnings grow at 8% annually. Now, let’s say you wait until you’re 35 to start saving. You put away the same $2,000 a year, but for three decades instead, and earnings grow at 8% a year. When you’re 65 you’ll wind up with around $245,000 — less than half the money.”

So it’s obvious that the key to a wealthy retirement is to start early. But I think it’s equally obvious that the number needed to retire comfortably is unique to every individual or couple, and depends upon their personal retirement goals. The number changes based on factors like marriage, children, and pre-retirement income, but as the above example demonstrates, if we start saving in our twenties, the better off we will be.

At a time when people are living longer, health care costs are rising, and traditional sources of retirement income are disappearing, Americans — even those of us in Generation Y — are heeding the call to plan wisely for their future; however, most people don’t know exactly how much they should be saving for their retirement, or how to go about achieving this number.

This is something that’d been kicking around my own mind for awhile, as I’m about to sign up for my company’s 401k plan. So I was excited when I received an email from reader Allison alerting me to a new program from ING Direct called “Your Number”.

I had seen a couple of “Your Number” commercials on TV in recent weeks but didn’t really get it. Apparently, the goal of the “Your Number” campaign is to “create awareness and help consumers better understand this essential part of retirement planning” (i.e how much they specifically need to retire comfortably). Apparently, the new site from ING leads visitors through an interactive, user-friendly experience that helps calculate their “number”. It also features a description of ING products and services, and links to financial advisors if they are interested.

For more about the “Your Number” view their TV commercial (via YouTube) below, or visit their website at ingyournumber.com

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As I was perusing the Internet recently I found a couple of great of pieces I wanted to touch upon today. The first is a quote from a Colby College grad talking about her experiences after college. The whole piece was a filled with advice from graduates to their undergraduate counterparts – you can read them all here – but this one was the most pertinent to me:

“Every grad should know that, unless you’re going on to grad school, the first year out of college is one of the toughest you’ll face. Someone told me at my graduation party that it’s the hardest of your life. I’m not sure it made it easier, but when things were challenging, at least I knew it was normal. Why is it so hard? It’s something to do with having no structure and having infinite choice when you’ve spent the previous 18 years in an academic structure with many fewer choices.”
-Kimberly Schneider ’01

Adjusting to the post-college lifestyle can be very challenging for many people. I know I, for one, have had a huge problem with my sleep schedule since a 10:30AM meeting isn’t “optional”, the notes won’t be put online and you generally can’t schedule every Friday off. Many grads find the first year after college one of the toughest of their lives, for a number of reasons. A lot of these reasons are all the things we here at RealWorldReally.com talk about all the time: credit card debt, budgeting, building a savings, finding a job, dealing with roommates or doing your taxes.

The important thing to remember is that while things might be tough now, you aren’t alone and plenty of other people are out there on their own trying to make it work too. If things get overwhelming, talk to some of your friends or colleagues about what they did to get by and get settled out of school. After a short time dedicating yourself to making good financial decisions you can start clearing out debt, freeing up more income and eliminating a lot of the early sacrifices recent grads end up making. And of course, stay tuned here for tons of great info as well.

The other cool piece I found online was a short NPR radio clip talking with two young professionals living in NYC about their savings habits – they hit both of the extremes here. I thought it was a good listen and you can probably garner some great tips from both of them that will help you build financial assets, even without the benefit of a $200,000/year income like Mr. Levy.

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In case you’ve been hidden under a rock for the past several weeks, listen up: Federal and state taxes are due in three days! But, if you haven’t yet shook the collegiate habit of waiting until the last minute to get things done, apparently H&R Block is offering the basic version of their TaxCut software free on their website for anyone who waited until the last minute to file their taxes (see, sometimes it pays to wait…). Click here to check it out.

Not only that, but the H&R Block website features more than 35 personal finance podcasts on issues ranging from overlooked tax deductions to capital gains to last-minute tips.

If you’re one of the ones who waited, or is struggling to get everything filed in time, it might be worth checking out!

(Thanks to RWR reader Jessica for the tip!)

Technorati Tags: H&R block, taxes, personal finance, college, graduation, real world

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Welcome to the 134th edition of the Carnival of Debt Reduction started by Mighty Bargain Hunter. This is my first time hosting a blog carnival, so I thought I’d do something fun with it. I tried to read at least part of the 92 total submissions and picked out some of the ones I liked best. Then I decided to write a little haiku about my top choices. Enjoy!

“How to survive the coming Recession” by Jonathan:

hope for the best but
plan for the worst is how John
expects to survive

“Earning More Doesn’t Help If You Don’t Spend Less” by paidtwice:

debt is avoided
not by earning more money
but by spending less

“10 Businesses You Can Start With Almost No Money — Money Under 30” by David Weliver:

supplement income
by starting a side project
and kiss debt goodbye

“How To Get Your Free FICO Credit Score” by Raymond:

free credit report
from the feds, not the scammers
everyone: here’s how

“How I Made $2,667 In Passive Income In March ‘08” by LIVING OFF DIVIDENDS:

make money online
with these great money makers
here’s to no more debt

“Re-Evaluating Your Bank May Save You Money” by Matthew Paulson:

all those little fees
your bank is holding you back
is it time to switch?

“Sitting in a Financial Mess? Here’s How to Get Out” by Debt Freedom Fighter:

if you are in debt
than it’s time to be honest
see what you can change

“An Illustration of Why Saving Money Is Harder Than Spending Money” by Broke Grad Student:

a picture is worth
a thousand words, so you see
here is the “debt cliff”

“Review: PearBudget Beta” by squawkfox:

“‘fun” and “delicious”
used to describe “PearBudget”
make me want to try

“The Dope on Credit Card Debt” by Lisa Spinelli:

the reality
is there are things you can do
don’t be average

##

Well folks - there you have it. For anyone whose submission wasn’t written about - I’m sorry! The ones featured here weren’t necessarily the best of the best, there were just too many submissions for one round up and lets face it, no one can write 92 Haiku!

If you’d like to get involved in the Carnival of Debt Reduction, visit carnivalofdebtreduction.com to find out more.

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Ladies & Gentlemen, there’s a new financial website taking the Interwebs by storm: SmartyPig.

What is SmartyPig? Well, essentially, SmartyPig is a social networking (of sorts) financial site which allows you to deposit any amount of money you’d like (over the $25 minimum) in the West Bank bank — an FDIC insured bank with $1.3 billion in assets — where it will earn a whopping 4.30% (APY) interest.

From there, you can set up “savings goals” for various projects (e.g. a trip to New York or a new Nintendo Wii), and activate automatic monthly ACH transfers until the goal is met. SmartyPig also offers incentive boosts from top retailers (like Amazon.com) who sell exactly what you’re saving for. But here’s the twist: you can make your account public and invite friends and family to help you achieve your goal.

For more on SmartyPig, check out this brief introduction video:

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photo credit: Lightmash

One of the biggest expenses for us recent grads, outside of rent, utilities and insurance, is food. Taking a trip to the grocery store can put a serious hurt on your wallet if you aren’t careful and don’t go in with a plan. Luckily for you, I’ve got a few easy tips you can follow to not only make your grocery shopping experience faster, but also less costly.

1. Make a List:
One of the biggest mistakes everyone makes when grocery shopping is not writing down what they need when they go shopping. Sure, you may feel a little bit like your parents making a list of things to buy, but it will prevent you from wandering up and down every aisle aimlessly and impulse buying things you didn’t need. Stick to your list and you’ll come out ahead every time.

2. Be Realistic:
When taking stock of what you have on hand at the house make a point to pick up only the things you’ll need in the next 1-2 weeks. Doing this will reduce the amount of food that spoils before you can eat it, and will prevent you from having a bloated pantry that looks like my mother’s – eerily reminiscent of an emergency bunker. While I’ll always encourage buying in bulk to reduce the unit price (more on this later) sometimes you just won’t physically drink a gallon of milk before it spoils. Keep in mind what you need and how much you use when making your selections.

3. Comparison Shop:
Every store will have varying sales week-to-week and it may be worth your while to see where you can get the best prices on the items you buy frequently. While Shaw’s has the best prices on some products, Stop & Shop or Hannaford is cheaper in others. Look around for the best deal you can get and do your shopping there; it could change each week. Also, make a point to look at the unit price and compare it to the larger packages on your non-perishable items. For instance, it may make some sense to buy a 24-pack of toilet paper instead of the 12-pack, since it will be cheaper per roll that way.

4. Buy Store Brand:
In my experience, buying the store brand on most products is the most cost-effective way to go and I’ve noticed little difference in taste or quality from the “name brands.” Everyone has different tastes and so this may not work for you, but if you hadn’t considered it before try out the generic brand once. Since the generic brand is often considerably lower in price, big savings can be had.

5. Use Coupons:
I talked about coupons the other day, so feel free to refer to this post for more info, The thing to remember is, coupons are a great way to save on things you already buy!

Technorati Tags: personal finance, frugal, groceries, budget, college, graduation, real world

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photo credit: desi.italy

In the last few years while living in my own apartment my mailbox has been periodically inundated with flyers, leaflets and packets of coupons offering a wide variety of discounts. Being the lazy college student that I was, I often just recycled these packets without even taking a second look at them. Now that I am outside the safety net of the dining halls and awesome campus giveaways I’ve needed to be a little more vigilant with how I spend my money and I’ve actually started browsing through those coupon packets. Surprisingly, there are great deals to be found in there.

Coupons are a great way to save money on the things that you frequently buy, and coupled with purchasing sale items, are a great way to save a good chunk of change. If you aren’t careful though you can actually end up spending more then you would have normally and have a house full of products you didn’t need.

Some great coupons that often show up in my mailbox are for discounted oil changes, 15-25% off of car maintenance and buy one, get one free coupons for local eateries. All of these are great ways to save on regular purchases and can provide a great opportunity for savings. The best part about these is companies send them right to your door for you to peruse.

It’s easy to get carried away with coupons though and end up buying things you don’t want or need. For instance, tons of coupons show up for food/home products that will give you $1-2 dollars off – only if you buy 5. Most households don’t need 5 bottles of window cleaner or a freezer full of Hot Pockets. By offering the discount if you buy in bulk, companies get consumers to spend more then planned and leave feeling like they got deal, which is often not the case.

Next time you head to the mailbox, take a second look at all those coupon offers you find there. But use common sense when selecting which ones to use so you don’t end up with a closet full of cleaning solution and an empty wallet.

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