Mother’s Day is right around the corner, which means it is time to start thinking about Mother’s Day gifts.  While moms frequently get a meal in bed, dinner out and flowers for Mother’s Day, maybe this year you could give her something different that she will remember for years to come.

Experience gifts are a perfect way to show your mother both how much you love her and how much you know her and her tastes and interests.  (If you don’t know your mother’s tastes and interests, you might want to stick with giving her flowers.)  If you give her the gift of experience, she is likely to remember it for years to come.

For instance, my grandmother always wanted to ride a hot air balloon.  Finally, in her seventies, one of her children arranged for her to go on a hot air balloon ride, and it was an experience she never forgot.  Would she remember the flowers she was given one particular year or the dinner out?  Probably not.  But she never forgot that hot air balloon ride.

An experience gift is the gift that keeps giving.

Make a list of things that your mother has always wanted to do.  Perhaps it is flying a small plane, skydiving, getting a massage or taking a gourmet cooking class.  Come up with the top three experiences you know she would enjoy.

If her experience is something mainstream such as the three listed above, you probably don’t have to pay full price for the experience.  Sign up for all of the social deal sites such as Groupon, Living Social, Mamasource, and Daily Deals, to name a few.  You will be sent an e-mail every day giving the deals for the day.  Chances are good that one of the three you have chosen for your mother will be offered in the next few weeks on one of the sites.

If you can’t find what you need from the daily deal sites, you can look on several other sites including Lifesta, Deals Go Round, CoupRecoup, Dealigee, and City Pockets.  These sites sell deals that others bought but decided that they didn’t want to use.  (By the way, on the off chance that your mother doesn’t want the experience that you bought her, she can change in that skydiving deal voucher for something more tame, like a day at the spa.)  Wealth Informatics wrote a complete post on reselling vouchers that explains the process in more detail.

If your mom is content with flowers and a meal out, you can give her that.  However, she may just want something more.  An experience gift is a gift that she is likely to remember for years to come.  You can take advantage of daily deal sites to make her experience a bit easier on your wallet, and she can always trade in the deal if it turns out to be something she doesn’t want.  Moms do a lot for their kids throughout their life; take the time to thank her this year by doing something to treat her in a unique way.

When you see your friends buying nice things such as a new car or a second home, do you automatically think that they have gone deep into debt for the purchase or do you secretly envy them and think they must have come into some money?  Do you think, some people have all the luck or some people have it so easy?  Maybe rather than feeling sorry for yourself or resentful of others, you should take a hard look at your own spending habits.

Recently, I was watching a rerun of the King of Queens.  In this episode, “Home Cheapo”, Carrie and Doug are envious of their friends, Deacon and Kelly, who have just bought a beautiful vacation home.  Carrie and Doug run through all of the ways Deacon and Kelly must have been able to afford the home including that they suddenly came into money.  Finally, they decide that Deacon and Kelly can afford the home because Carrie and Doug have been paying for Deacon and Kelly’s share whenever they go out together, which isn’t exactly true.

After much feuding between the couples, Deacon and Kelly finally share that they were able to buy the home because they cut their expenses, stopped going out to eat and saved their money for quite awhile.  This leads Carrie and Doug to look at their own spending such as Carrie’s trips to get her nails done and Doug’s beer drinking and food eating habits.  They suddenly begin to see that all of the money they have used to pamper and treat themselves could have been used in a better way, such as Deacon and Kelly have done by buying a vacation home.

In our society where many, many people overspend, it is easy to see someone buy something nice that we would like and just say that they must be deeply in debt.  This might be true.  But it also might be true that they are sacrificing and saving.

There is nothing wrong with buying little treats for yourself throughout the week such as coffee out, lunches out, trips to restaurants, and concert tickets, to name a few.  But, keep in mind, when you make these choices, you may be unconsciously making another choice.  These little treats that you don’t even remember spending the money on a week later may be why you can’t buy a second home (or even a first home) or why you can’t take that trip to Europe that you have always dreamed of or why you can’t reach whatever other big dream you have.

Saving for important, memorable things such as a house or a trip is hard.  You have to constantly delay gratification, and let’s face it, humans aren’t good at that.  It is much easier to treat yourself with little purchases throughout the day and week.  Just know that you are then sacrificing bigger dreams.  You are living like Carrie and Doug, who were jealous and bitter in this episode, rather than Deacon and Kelly who were willing to sacrifice short-term to get something they wanted long-term.

As a child, you may have played the game of LIFE and enjoyed those moments you get an unexpected windfall.  The same can happen in real life.  A few years ago, many Americans got an unexpected windfall when President Bush offered a tax rebate to a majority of U.S. citizens.  Some people get an unexpected windfall when they get a larger tax return than they were expecting or a relative dies and leaves them an inheritance.

If you get an unexpected windfall, it is important to have a plan to decide what to do with the money before you spend any of it.  In addition, if it is a large windfall, you may want to put the money in the bank and not spend any of it until you have had a few weeks (or months) to decide the best way to utilize the money.

Here are a few ideas how to use an unexpected windfall:

1. Pay down debt.  Many Americans have “bad” debt such as credit card debt.  If that is true for you, take some or all of the money and pay down your debt.  Doing so will increase your monthly cash flow and reduce the amount of money you are losing to interest payments.
2. Bulk up your emergency fund.  Some experts now recommend that families have up to 8 months in an emergency fund.  An unexpected windfall can help you reach this goal.
3. Pay monthly expenses for the entire year.  Many organizations you pay monthly such as your child’s school (if he is in private school), afterschool daycare, sports organizations and others will give you a discount if you can pay the entire year upfront.  For example, my child takes dance class, and I received a 10% discount by paying for the entire year upfront in September.  Not only will paying for the entire year perhaps give you a discount, but it again frees up monthly cash flow.
4. Invest in yourself.  If you have not completed your college degree or you are looking to get your Master’s, an unexpected windfall may help you do that.  Investing in yourself can help extend the power of your windfall because you will probably make more money through the years thanks to improving yourself now.
5. Pay down your house.  The last few years have reminded many Americans that the safest financial move is to have your house paid in full.  If you unexpectedly lose your job, you don’t have to worry about also losing your home due to foreclosure.  If the market reduces the value of your home, you are somewhat insulated from that because the home is already paid for.
6. Put money in your retirement fund.  If your retirement is less than it should be for your age, consider using the windfall to bulk up your retirement accounts.

Of course, if you receive a large windfall, it is always best to speak with a professional to make a sound plan for how to use the money.  If it is a smaller windfall, your natural instinct may be to first think of ways you will spend it.  Instead, think of ways you can invest in yourself and your future and make your finances more secure.

Photo courtesy of Tax Credits via Flickr.

When it comes to outdoor home improvements, there are a number of things which you can do to improve the façade of your house. Whether it’s for decorative, practical or security purposes, by making such improvements, you’ll feel better about spending time out in the garden.

Quality home innovations can make all the difference to the front and back of your house. One of those is a glass veranda. As well as offering you protection from the elements, it also looks elegant and would be a great addition to your home, especially if you want somewhere to look at your front or back lawn with pride. Propped up with pillars made from the strongest materials around, it will make the most of your porch.

Similarly, awnings also have the effect of blocking the sun, rain and anything else that comes your way while sat underneath. The main purpose of awnings is to make sure that you and anyone else under them are protected from the sun and any harmful UV rays which come with them, especially during the summertime. You can use awnings for your patio, porch or even your front or back door. You can also either buy awnings which are manual, retractable or drop arm awnings with side screens for even more protection.

If you’re sat in your conservatory, you’re protected from any precipitation that strikes. However, you want to protect yourself from the sun and, at night, you want to ensure that no damage is done to it by mindless criminals. By adding security blinds, you’ll ensure that none of that ever happens to you. As well as the conservatory, you can use security blinds for any door or window of your house to ensure safety when you’re away.

Congratulations!   Perhaps you have just received the happy news that you are expecting or you are planning to soon expand your family.  Preparing for the arrival of a new baby is a joyous time full of excitement, but it should also be a time of careful planning.  

If you have no children now, you will find that your lifestyle changes drastically with the arrival of a newborn.  For awhile, there is very little free time or sleep.  In addition to personal lifestyle changes, you will also face many financial changes.  Careful planning during pregnancy can help you adjust financially to the arrival of a new baby.

To Work or Not to Work

One of the most important decisions is whether or not one parent will stay home with the child.  Often times both parents return to work because they both love their careers or because two incomes are an economic necessity.  However, frequently a mother plans to return to work but changes her mind after the baby is born or when she cannot find suitable daycare.  Arranging your finances with the plan that one partner will stay home is the most conservative plan and so that you’re ready for whatever decision you end up making.

How Your Mortgage May be Affected

If you make a plan based on the notion that one parent will stay home, you will want to first consider if you should refinance your mortgage before the baby arrives.  Every time we think mortgage interest rates have hit their lowest point, it seems that they then fall further.   Using a mortgage calculator can help you determine how much your mortgage payment can change if you refinance at a lower rate.  It may make sense to refinance while both partners are still employed so you can get the best rate possible.  However, another alternative is to change your fixed rate loan to an adjustable rate mortgage.  You may have as many as five years before the interest rate on your ARM changes, giving the stay-at-home parent plenty of time to return to work when the child is older.  Either way, if one partner does quit, your mortgage is already set at the lowest interest rate currently possible, and you may have smaller payments, which will be more affordable on one salary.

Also, consider if you will qualify for parental payments.  If you are able to reduce your expenses to live on one income before the child is born, those parental payments can be considered “extra” money.  You could use that money to create a larger emergency fund or to invest in your home if you refinance to a flexible mortgage.  You could put the money on the mortgage now, when you have extra money, and may be able to access the extra in the future when money may be tighter.

Planning for a baby is an exciting time.  If you take the proper steps before the baby is born, you can also reduce the financial stress you may feel after the child arrives, even if one parent stays home.

**Photo by paparutzi**

Looking for a house is often as frustrating as it is exciting. You want to find the perfect house for you and your family, but how do you know when you’ve found it? How do you know what you can afford? The second question is often easier to answer than the first.

You can use an online tool, such as a budget spreadsheet or mortgage calculator, to estimate what you can afford. As for finding the perfect house, you may know when you do, but there are some ways the right home for you will stick out from all the rest you’ve seen.

You Feel Comfortable and Invited

One sign that you’ve found your house is feeling like you want to see the inside of it. If the house doesn’t entice you from the outside, it’s probably not the house for you. Once you do go inside, you’ll feel welcome and not uncomfortable with any of the rooms, particularly the bathroom and the kitchen. If you can imagine yourself living in the house, it’s a strong candidate.

You’re Not Overwhelmed by Repairs

The perfect house for you may need some minor repairs, but you shouldn’t be faced with a major project or complete cosmetic overhaul unless you’re actually looking for a fixer-upper. Major repairs can eat away at your savings and delay your move-in date.

Your Needs are Met

It’s easy to forget basic needs when looking at a home, especially if the home has the features and look you want. You’ll need a home that has the number of bedrooms and bathrooms you require. If you know you want a garden or other items that require a backyard, you’ll need a home with enough yard space. Other items you’ll need to consider include a garage and storage space. Even if the home is perfect in every other way, you will run into problems if it doesn’t meet your needs.

You Can Afford the Payments

If you’re buying with a mortgage, you may already know the maximum loan amount you’re approved for. However, the limit may not reflect what you can truly afford. Lenders may approve you for an amount above what you’ll be able to pay without running into financial problems. Your agent may be showing you homes based on that overestimated loan limit.

Calculate what you can afford by creating a complete household budget. Don’t omit any expenses, no matter how small and leave out unreliable income sources. Once you’ve determined the highest loan payment you can handle, use a mortgage calculator to estimate loan payments based on different loan amounts, so you know how much you can borrow.

The mortgage calculator will account for interest and any other expenses that will raise your payment, such as homeowners insurance. Buying a home you can’t afford is a big mistake, as you’ll lose your home and any equity you gained if the bank forecloses.

**Photo by Living in Monrovia**

The Super Bowl is just around the corner and if your house is about be invaded by party-goers, you might be worried about what hosting a huge party is going to cost you.

Potlucks and BYOB are always a good way to host a party on the cheap, but if you want to keep the burden off of your guests, here are a few way to keep the costs down on the food, decor and entertainment.

1. Food

A Super Bowl party is one event where you can get away with serving cheap food. Fact of the matter is, most people aren’t looking for prime rib. They want salty chips and cold beer.

Here are a few things that are easy to make and cost less than $5 each:

Deviled Eggs – Less than $3,00

Bag of Chips & Salsa – $4.00-$5.00

Vegetarian Chili – Around $5.00 for 8 servings (Add another $3.00 if you want the ground beef)

Carryout Pizza – $5.00 for a Large 1-Topping at places like Little Caesars & Hungry Howies

2. Decor

The elaborate, Martha Stewart-like decorations that adorn some football parties are fun, but truth be told, most folks won’t miss them. Save a few bucks and skip out on all of the team decor and football shaped piñatas.

If you’re insistent on decorating, a couple rolls of streamers in your favorite team’s color can go a long way to transforming a room. And if you’re feeling REALLY creative, decorating the party food can be a fun, cheap way to add some life to your party. Check out this massive football stadium we found made out of Doritos, Twinkies  and Guacamole. LOL! It’s brought to you by the fine folks over at HolyTaco.com and here are the step-by-step directions if you want to make your own.

Photo by HolyTaco.com

3. Entertainment

Once the game starts, all eyes will be on the TV, but try adding a little bit of entertainment to keep your guests engaged and socializing. Here are a couple of ideas…

• Start a friendly pool on which team will win how large the spread will be. I recommend setting a house maximum of $20 a person so that it doesn’t get out of control.
• Have all your guests guess how many beer commercials will air during the Super Bowl and send the winner home with a bottle of liquor.
• The folks over at HolidayCentral.com suggest putting together Superbowl Commercial Bingo. They advise you to “create or purchase 5 x 5 bingo cards. Each card must be unique for each player. Play the game like traditional bingo, but the squares on the bingo card will be based on things you will see in commercials during the Super Bowl. Some suggestions include:  Pizza Delivery Guy, Kick to the Groin, Soda Commercial, Talking Babies, Movie Trailer, GPS Commercial, or CarInsurance Commercial.  Any five squares in a row represent a Bingo win.”

Have fun everyone!!

*Superbowl party photo by jasonlam on flickr*

Many parents seek to adopt children for a variety of reasons.  Perhaps they are unable to have children of their own, or they already have biological children but cannot or do not want to have more or they simply want to expand their family and take care of a child in need.

While people enter the adoption path for a variety of reasons, most of them struggle to afford the high cost of adoption, which can cost upwards of $20,000.

If you are looking to adopt, here are some ways to raise the money to do so:

1. Use your skills to generate extra income.  There are many women who excel at a craft and sell their products on sites such as Etsy.  With the extra money that they make, they partially help fund their adoption account.  Likewise, both spouses could look into working additional hours or a side job to raise money to fund the adoption.
2. Slash your budget.  If you have any extras in your budget such as cable, a gym membership, dining out money and others, consider temporarily foregoing the luxuries and instead putting the money in an adoption fund.  When you receive tax money or other extra money, put it in your adoption fund.
3. Create an adoption website.  A woman I know who was adopting as a single parent created a website documenting her journey through the adoption process.  She also had a button where people could anonymously contribute to her adoption fund.  Friends told friends about the blog, and she raised quite a bit of money this way.
4. See if your employer offers assistance.  Many employers are now beginning to offer adoption assistance, sometimes offering as much as $4,000.  Check with your Human Resources department to see if this is a benefit your employer offers.
5. Apply for an adoption grant.  Obviously, these are very competitive, but organizations such as showhope.org offer grants to partially fund the adoption process.  People can apply after the home study visit.  All applicants at showhope.org are also eligible to take part in the Shirts of Hope program, which does not require any upfront costs and allows you to make a commission on t-shirts you sell to help fund your adoption.
6. See if your church offers assistance.  Some churches are willing to work with parishioners to help find ways to raise the money for adoption or to assist with fundraisers.  Check with your minister to see if your church can offer any support.
7. Borrow money.  Paying for your adoption without debt is ideal, but there are ways to finance it.  Although not recommended, some people have taken cash advances from their credit cards, borrowed from their retirement and taken out second mortgages.  However, remember that after you complete the adoption, you will have plenty of expenses associated with the baby, so it is best not to go into debt for the adoption.

Adoption is a process that helps unite children in need of loving homes with parents who want to raise them.  Whether you adopt domestically or internationally, the adoption process can cost thousands of dollars.

While you can borrow the funds for adoption, raising the money upfront yourself through slashing your budget, bringing in more income and pursuing grants and fund raising is preferred.  While it may take a bit longer to adopt if you raise the money upfront, doing so is possible, and you will be thankful that you did so when you are holding your new baby and don’t have to worry about how to pay off debt.

*Photo by mlaaker*

I call it pre-coffee ergophobia. It’s that 30 minute window between the time the coffee begins brewing until the time when the coffee has fully stimulated all of the neurons in your brain. During that time, you’re awake but still fearful of doing any type of work which might require brainpower.

It’s also the time that I find myself completely unable to fight off the calling of early morning infomercials.

Now mind you, I’ve never actually bought anything off of the TV, but I seriously think I’ve seen all of them. The Showtime Rotisserie. OxiClean. The NuWave Oven. And of course, my favorite, the ridiculous “No Money Down” real estate products. If you haven’t seen it or already wasted $360 buying it, allow me to spill the beans.

Here are a few of the ways they suggest getting a “no money down” mortgage…

“Buy to Let” Mortgage

These types of mortgages were very popular before the financial crisis, but they are a bit harder to get now. These loans are for rental properties and in order to qualify for the loan you have to use your future rental income as your collateral. It’s a bit easier to qualify if you can present a business plan and applications from prospective applicants.

However if you’re using a buy to let mortgage calculator, you’ll probably notice that your are going to be required to buy PMI insurance with this type of loan. That’s because loans issued with less than 20% down are usually required to buy this costly insurance which may reduce or eliminate your profit potential. Also, a lot of community banks have stopped issuing these types of loans, which leaves you to choose between large banks like Chase & Bank of America, or online lenders like BusinessCashAdvance.com.

VA Loan

If you’re a veteran, active duty personnel, national guard/reserve or a surviving spouse, you’re probably eligible for a no-money down VA loan. Another huge advantage of VA loans are the exceptionally low rates (The mortgage interest calculator show the rate at 4.08% this month).

However, in order to qualify for a VA loan, you have to guarantee that you will personally live in the domicile within 60 days of the close. That all but eliminates your ability to rent out the property, unless you buy a home and rent out one of the rooms inside.

Collateral

A little obvious, but if you have another high-value item in your name, the bank may accept it as collateral.

A lot of the programs suggest leveraging your personal home or another rental property in order to qualify for a “no money” down loan. But, who hear has enough equity left in their home to leverage it? Anybody? Cricket…Cricket…

USDA Loan

The Department of Agriculture’s has a program for guaranteeing loans for “rural development.” However, the definition of “rural” is very loosely defined term. Take a look at the USDA’s website to see a map of eligible areas. Unless your looking to build downtown, you’ll probably qualify, although there are restrictions on household income and usually need to be a first-time homebuyer.

Another advantage of a USDA mortgage comes from a bank, is that you aren’t required to buy mortgage insurance. Instead, the USDA levies a 2 percent guarantee fee, which can be rolled into the loan amount.

So, fess up. Anybody else have an infomercial addiction? And, do you think “No Money Down” loans are a good idea?

*Photo by InAweofGod’sCreation*

One common New Year’s resolution is to lose weight and eat healthier.  Yet, with the high price of groceries now, many believe that buying healthy food is not possible without spending a small fortune.

Buying foods like potato chips, soda, and frozen processed foods on sale may seem to be the only way to keep down grocery costs.  However, buying healthy foods on a budget is possible, if you are conscious of what foods you choose.  Try these tips:

1.  Eat in season.  In January, grapes can run $2 to $4 per pound.  While our family loves grapes, we don’t eat them now.  We buy them in the summer when they are cheaper.  Good fruits to eat now include all citrus as well as bananas and apples.
2. Look for cheap sources of protein.  A one pound bag of beans can cost as little as $1.00 to $1.50.  Beans are an excellent source of protein and complex carbohydrates and are a nutritious food to eat.  Try to have at least two bean based meals a week to cut costs and improve your health.  Some meals to try include bean burritos, bean based chili, and baked beans, to name a few.  Another cheap source of protein is eggs.  You don’t have to limit eggs to breakfast only; consider making vegetable quiches, omelets, and soufflés for dinner.  At 10 to 15 cents per egg, eggs are an excellent source of low cost protein.
3. Use meat as a condiment.  Americans consume too much red meat.  Overconsumption can have a detrimental effect on both your health and your wallet.  Instead, save the red meat as a condiment.  If you are having chili, just add enough meat to give it flavor, maybe ½ pound, and instead get the protein from beans.  Rather than steak for everyone at dinner time, just buy one and slice it for stir fry loaded with veggies.
4. Consider frozen vegetables.  On sale, frozen vegetables can be had for as little as $1 per pound.  Even better, you can stock up and keep them in the freezer for up to a year.  Buy enough bags of vegetables to last you until they are on sale again, usually in 8 to 12 weeks.
5. Grow your own.  In the spring, if you have the space, consider growing your own vegetable garden.  For the cost of a few seeds and your time, you can pick vegetables right from your own back yard.  There is no need to pay for expensive organic vegetables as you are growing them yourself.
6. Eat classic breakfasts.  Boxed cereal can be very expensive.  If you are a savvy shopper and manage to snag it on sale with a coupon, the price may be more reasonable, but most cereals have additional additives and sweeteners that aren’t good for your body.  Instead, buy oatmeal or make homemade whole wheat waffles and serve with fruit.

While it may seem that it is cheaper to eat pre-packaged food, eating fresh food that you prepare at home is better for both your body and your wallet.  Take advantage of sales and these tips to get the best bargains on healthy food.

You will be surprised how much better you feel and how much money you save.

*Photo by Moon Stars and Paper*