SAVING MONEY

A childhood dream most people hold onto is one day becoming rich. The idea of acquiring millions of dollars seems like the best way to gain a ticket to eternal happiness. Unfortunately, many people who actually gain those riches, including some celebrities, realize their money can easily slip through their fingers if it’s not properly managed. That’s why those who have gained both fame and riches, yet still maintain their frugality, always come out on top.

There’s absolutely nothing wrong with remaining frugal while possessing a lot of money. In fact, taking tips from stars who still live well within their means could help you stick to a budget when managing much less money.

Photo Courtesy of Ethan0026 via Wikimedia

Consumers should save money and spend less time thinking about spending, says Martin Feldstein, the former chairman of the Council of Economic Advisors. In a Friday interview with CNBC, Feldstein explained that a recent sharp decline in savings account rates is having a negative effect on household wealth, leaving consumers with the responsibility of adding more of their income to their savings accounts.

Household Wealth Below Pre-Recession Levels

Hello, 2011! You sure got here quick.

A new year is upon us, and with it comes a mix of hope and uncertainty. Looking back at 2010, the previous year certainly had its share of good and bad, yet all things considered, the economy has made a lot of progress from being on the verge of collapse just a few years ago to making its current climb–albeit slow and uneasy–back to recovery.

The Federal Reserve and the Obama administration seem committed to jump-starting the economy, whether or not the rest of the population will follow will be the biggest ongoing development of 2011. Here’s a look into a few of the key 2011 predictions and areas that will determine whether your money has a good year, or one that leaves more to be desired.

Making New Year’s resolutions is an annual tradition for most, and as each new year approaches, many people take a look a close look at what parts of themselves they want to improve. Whether it’s saving money, paying off debt or living a little healthier, the goal is to be better off in the following December than you were in January.

That said, how many people actually follow through with their plans? More than half of the people who make New Year’s resolution don’t get past the first six months, but those that really commit to achieving their goals have a higher chance of success. Check out some of the most popular resolutions people make each year. Then tell us what your resolutions are and how you plan to accomplish them in 2011.

Right now, many of us have been “scared straight” by the recent recession. We are spending less and saving more, paying down debt and changing some of our poor financial habits. Further, while concerns about the economy are abating to some degree, many people still feel the pinch. As a result, many people are still solidly in saving mode.

But the recession will end sometime, and the urgency to save will likely fade. For the sake of your finances, though, you should remain in recession savings mode. Here are some things to be aware of as you start feeling better about your financial situation and the economy:

Santa’s sleigh may be powered by magical reindeer, but what if he had to go with another economical option to get around the globe every Christmas? Maybe Santa could benefit from switching to a hybrid. After all, we’ve talked a lot about saving and avoiding common money mistakes this holiday season, but you might find that expanding your concept of “holiday budgeting” will help you continue to save money well into the next year and beyond.

For example, while you’ve been applying your excellent budgeting skills while getting gifts for Christmas, have you stopped to think about all the money you’ve been spending just driving between shopping malls? Take a lesson from someone who does quite a bit of traveling during Christmas and see how much you could save by changing vehicles.

If saving money is on your agenda this holiday season, then you’d better take advantage of Free Shipping Day. Over 1500 retailers have signed up to offer many of their products for free, but only for this special day. So if you’re trying to save on holiday shopping or want to purchase items that you’ll need in the new year, this is a great way to get what you need while sparing your savings accounts.

What is Free Shipping Day?

Have you ever wanted to live in the lap of luxury and buy everything you could ever want and more? Everyone at some point has platinum-coated dreams, but most cannot afford it.

But for just a few minutes, why not envision yourself as the super-rich jetsetter who might receive the following lavish Christmas gifts? Nothing wrong with dreaming, right?

From roughly 1995 to 2010, we’ve seen technology evolve at an alarming rate. We were still excited about cordless phones and CDs when we suddenly saw the onset of the Internet, mobile devices, flat screen TVs, online banking and so much more.

Some of these changes have had an effect on our finances, for better or worse. Let’s take a look at what changes have occurred over the past 15 years and how they have affected our bank accounts.