Each month, we publish a series of articles of interest to homeowners -- money-saving tips, household safety checklists, home improvement advice, real estate insider secrets, etc. Whether you currently are in the market for a new home, or not, we hope that this information is of value to you. Please feel free to pass these articles on to your family and friends.
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FEATURE REPORT
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Can Your Kitchen Pass the Food Safety Test?
 What comes to
mind when you think of a clean kitchen? Shiny waxed
floors? Gleaming stainless steel sinks? Spotless counters and neatly
arranged cupboards?
They can help, but a truly "clean" kitchen--that is, one that ensures
safe food--relies on more than just looks. It also depends on safe food
practices.
In the home, food safety concerns revolve around three main functions:
food storage, food handling, and cooking.
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Also This Month...
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27 Tips You Should Know To Get Your Home Sold Fast and For Top Dollar
Because your home may well be your
largest asset, selling it is probably one of the most important
decisions you will make in your life. Through these 27 tips you
will discover how to protect and capitalize on your most
important investment, reduce stress, be in control of your
situation, and make the most profit possible.
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Common Mistakes Made With Money and How to Avoid Them
Everybody makes mistakes with their money. The important thing is to keep them to a minimum. And one
of the best ways to accomplish that is to learn from the mistakes of others. Here is our list of the top
mistakes people make with their money, and what you can do to avoid these mistakes in the first
place.
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Top>>
Can Your Kitchen Pass the Food Safety Test?
What comes to mind when you think of a clean kitchen? Shiny waxed floors?
Gleaming stainless steel sinks? Spotless counters and neatly arranged
cupboards?
They can help, but a truly "clean" kitchen--that is, one that ensures
safe food--relies on more than just looks. It also depends on safe food
practices.
In the home, food safety concerns revolve around three main functions:
food storage, food handling, and cooking. To see how well you're doing in
each, take this quiz, and then read on to learn how you can make the meals
and snacks from your kitchen the safest possible.
Quiz
Choose the answer that best describes the practice in your household,
whether or not you are the primary food handler.
1. The temperature of the refrigerator in my home is:
a. 50 degrees Fahrenheit (10 ° C)
b. 41 degrees Fahrenheit (5 ° C)
c. I don't know; I've never measured it.
2. The last time we had leftover cooked stew or other food with meat,
chicken or fish, the food was:
a. cooled to room temperature, then put in the refrigerator
b. put in the refrigerator immediately after the food was served
c. left at room temperature overnight or longer
3. The last time the kitchen sink drain, disposal and connecting pipe
in my home were sanitized was:
a. last night
b. several weeks ago
c. can't remember
4. If a cutting board is used in my home to cut raw meat, poultry or
fish and it is going to be used to chop another food, the board is:
a. reused as is
b. wiped with a damp cloth
c. washed with soap and hot water
d. washed with soap and hot water and then sanitized
5. The last time we had hamburgers in my home, I ate mine:
a. rare
b. medium
c. well-done
6. The last time there was cookie dough in my home, the dough was:
a. made with raw eggs, and I sampled some of it
b. store-bought, and I sampled some of it
c. not sampled until baked
7. I clean my kitchen counters and other surfaces that come in contact
with food with:
a. water
b. hot water and soap
c. hot water and soap, then bleach solution
d. hot water and soap, then commercial sanitizing agent
8. When dishes are washed in my home, they are:
a. cleaned by an automatic dishwasher and then air-dried
b. left to soak in the sink for several hours and then washed with soap in
the same water
c. washed right away with hot water and soap in the sink and then air-dried
d. washed right away with hot water and soap in the sink and immediately
towel-dried
9. The last time I handled raw meat, poultry or fish, I cleaned my
hands afterwards by:
a. wiping them on a towel
b. rinsing them under hot, cold or warm tap water
c. washing with soap and warm water
10. Meat, poultry and fish products are defrosted in my home by:
a. setting them on the counter
b. placing them in the refrigerator
c. microwaving
11. When I buy fresh seafood, I:
a. buy only fish that's refrigerated or well iced
b. take it home immediately and put it in the refrigerator
c. sometimes buy it straight out of a local fisher's creel
12. I realize people, including myself, should be especially careful
about not eating raw seafood, if they have:
a. diabetes
b. HIV infection
c. cancer
d. liver disease
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Answers
1. Refrigerators should stay at 41 ° F (5 ° C) or less, so if you chose
answer B, give yourself two points. If you didn't, you're not alone. Many
people overlook the importance of maintaining an appropriate refrigerator
temperature.
The refrigerator temperature in many households is above 50 degrees (10 ° C). Measure the temperature with a thermometer and, if needed, adjust the
refrigerator's temperature control dial. A temperature of 41 ° F (5 ° C) or less
is important because it slows the growth of most bacteria. The temperature
won't kill the bacteria, but it will keep them from multiplying, and the
fewer there are, the less likely you are to get sick from them. Freezing at
zero ° F (minus 18 ° C) or less stops bacterial growth (although it won't kill
all bacteria already present).
2. Answer B is the best practice; give yourself two points if you picked
it.
Hot foods should be refrigerated as soon as possible within two hours
after cooking. But don't keep the food if it's been standing out for more
than two hours. Don't taste test it, either. Even a small amount of
contaminated food can cause illness.
Date leftovers so they can be used within a safe time. Generally, they
remain safe when refrigerated for three to five days. If in doubt, throw it
out.
3. If answer A best describes your household's practice, give yourself
two points. Give yourself one point if you chose B.
The kitchen sink drain, disposal and connecting pipe are often
overlooked, but they should be sanitized periodically by pouring down the
sink a solution of 1 teaspoon (5 milliliters) of chlorine bleach in 1 quart
(about 1 liter) of water or a solution of commercial kitchen cleaning agent
made according to product directions. Food particles get trapped in the
drain and disposal and, along with the moistness, create an ideal
environment for bacterial growth.
4. If answer D best describes your household's practice, give yourself
two points.
If you picked A, you're violating an important food safety rule: Never
allow raw meat, poultry and fish to come in contact with other foods. Answer
B isn't good, either. Improper washing, such as with a damp cloth, will not
remove bacteria. And washing only with soap and water may not do the job,
either.
5. Give yourself two points if you picked answer C.
If you don't have a meat thermometer, there are other ways to determine
whether seafood is done:
- For fish, slip the point of a sharp knife into the flesh and pull
aside. The edges should be opaque and the center slightly translucent with
flakes beginning to separate. Let the fish stand three to four minutes to
finish cooking.
- For shrimp, lobster and scallops, check color. Shrimp and lobster and
scallops, red and the flesh becomes pearly opaque. Scallops turn milky
white or opaque and firm.
- For clams, mussels and oysters, watch for the point at which their
shells open. Boil three to five minutes longer. Throw out those that stay
closed.
- When using the microwave, rotate the dish several times to ensure even
cooking. Follow recommended standing times. After the standing time is
completed, check the seafood in several spots with a meat thermometer to
be sure the product has reached the proper temperature.
6. If you answered A, you may be putting yourself at risk for infection
with Salmonella enteritidis, a bacterium that can be in shell eggs. Cooking
the egg or egg-containing food product to an internal temperature of at
least 145 ° F (63 ° C) kills the bacteria. So answer C--eating the baked
product--will earn you two points.
You'll get two points for answer B, also. Foods containing raw eggs, such
as homemade ice cream, cake batter, mayonnaise, and eggnog, carry a
Salmonella risk, but their commercial counterparts don't. Commercial
products are made with pasteurized eggs; that is, eggs that have been heated
sufficiently to kill bacteria, and also may contain an acidifying agent that
kills the bacteria. Commercial preparations of cookie dough are not a food
hazard.
If you want to sample homemade dough or batter or eat other foods with
raw-egg-containing products, consider substituting pasteurized eggs for raw
eggs. Pasteurized eggs are usually sold in the grocer's refrigerated dairy
case.
Some other tips to ensure egg safety:
- Buy only refrigerated eggs, and keep them refrigerated until you are
ready to cook and serve them.
- Cook eggs thoroughly until both the yolk and white are firm, not
runny, and scramble until there is no visible liquid egg.
- Cook pasta dishes and stuffings that contain eggs thoroughly.
7. Answers C or D will earn you two points each; answer B, one point.
According to FDA's Guzewich, bleach and commercial kitchen cleaning agents
are the best sanitizers--provided they're diluted according to product
directions. They're the most effective at getting rid of bacteria. Hot water
and soap does a good job, too, but may not kill all strains of bacteria.
Water may get rid of visible dirt, but not bacteria.
Also, be sure to keep dishcloths and sponges clean because, when wet,
these materials harbor bacteria and may promote their growth.
8. Answers A and C are worth two points each. There are potential
problems with B and D. When you let dishes sit in water for a long time, it
"creates a soup," FDA's Buchanan said. "The food left on the dish
contributes nutrients for bacteria, so the bacteria will multiply." When
washing dishes by hand, he said, it's best to wash them all within two
hours. Also, it's best to air-dry them so you don't handle them while
they're wet.
9. The only correct practice is answer C. Give yourself two points if you
picked it.
Wash hands with warm water and soap for at least 20 seconds before and
after handling food, especially raw meat, poultry and fish. If you have an
infection or cut on your hands, wear rubber or plastic gloves. Wash gloved
hands just as often as bare hands because the gloves can pick up bacteria.
(However, when washing gloved hands, you don't need to take off your gloves
and wash your bare hands, too.)
10. Give yourself two points if you picked B or C. Food safety experts
recommend thawing foods in the refrigerator or the microwave oven or putting
the package in a water-tight plastic bag submerged in cold water and
changing the water every 30 minutes. Gradual defrosting overnight is best
because it helps maintain quality.
When microwaving, follow package directions. Leave about 2 inches (about
5 centimeters) between the food and the inside surface of the microwave to
allow heat to circulate. Smaller items will defrost more evenly than larger
pieces of food. Foods defrosted in the microwave oven should be cooked
immediately after thawing.
Do not thaw meat, poultry and fish products on the counter or in the sink
without cold water; bacteria can multiply rapidly at room temperature.
Marinate food in the refrigerator, not on the counter. Discard the
marinade after use because it contains raw juices, which may harbor
bacteria. If you want to use the marinade as a dip or sauce, reserve a
portion before adding raw food.
11. A and B are correct. Give yourself two points for either.
When buying fresh seafood, buy only from reputable dealers who keep their
products refrigerated or properly iced. Be wary, for example, of vendors
selling fish out of their creel (canvas bag) or out of the back of their
truck.
Once you buy the seafood, immediately put it on ice, in the refrigerator
or in the freezer. Some other tips for choosing safe seafood:
- Don't buy cooked seafood, such as shrimp, crabs or smoked fish, if
displayed in the same case as raw fish. Cross-contamination can occur. Or,
at least, make sure the raw fish is on a level lower than the cooked fish
so that the raw fish juices don't flow onto the cooked items and
contaminate them.
- Don't buy frozen seafood if the packages are open, torn or crushed on
the edges. Avoid packages that are above the frost line in the store's
freezer. If the package cover is transparent, look for signs of frost or
ice crystals. This could mean that the fish has either been stored for a
long time or thawed and refrozen.
- Recreational fishers who plan to eat their catch should follow local government advisories about fishing areas and
eating fish from
certain areas.
- As with meat and poultry, if seafood will be used within two days
after purchase, store it in the coldest part of the refrigerator, usually
under the freezer compartment or in a special "meat keeper." Avoid packing
it in tightly with other items; allow air to circulate freely around the
package. Otherwise, wrap the food tightly in moisture-proof freezer paper
or foil to protect it from air leaks and store in the freezer.
- Discard shellfish, such as lobsters, crabs, oysters, clams and
mussels, if they die during storage or if their shells crack or break.
Live shellfish close up whe the shell is tapped.
12. If you are under treatment for any of these diseases, as well as
several others, you should avoid raw seafood. Give yourself two points for
knowing one or more of the risky conditions.
People with certain diseases and conditions need to be especially careful
because their diseases or the medicine they take may put them at risk for
serious illness or death from contaminated seafood.
These conditions include:
- liver disease, either from excessive alcohol use, viral hepatitis, or
other causes hemochromatosis, an iron disorder
- diabetes
- stomach problems, including previous stomach surgery and low stomach
acid (for example, from antacid use)
- cancer
- immune disorders, including HIV infection
- long-term steroid use, as for asthma and arthritis
- Older adults also may be at increased risk because they more often
have these conditions.
People with these diseases or conditions should never eat raw seafood --
only seafood that has been thoroughly cooked.
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Rating Your Home's Food Practices
24 points: Feel confident about the safety of foods served in your
home.
12 to 23 points: Reexamine food safety practices in your home.
Some key rules are being violated.
11 points or below: Take steps immediately to correct food
handling, storage and cooking techniques used in your home. Current
practices are putting you and other members of your household in danger of
food-borne illness.
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27 Tips You Should Know To Get Your Home Sold Fast and For Top Dollar
".....you have to sell your present home at exactly the right time in
order to avoid either the financial burden of owning two homes or, just as
bad, the dilemma of having no place to live during the gap between
closings."
Because your home may well be
your largest asset, selling it is probably one of the most important
decisions you will make in your life. To better understand the homeselling
process, a guide has been prepared from current industry insider reports.
Through these 27 tips you will discover how to protect and capitalize on
your most important investment, reduce stress, be in control of your
situation, and make the most profit possible.
1. Understand Why You Are Selling Your Home
Your motivation to sell is the
determining factor as to how you will approach the process. It affects
everything from what you set your asking price at to how much time, money
and effort you're willing to invest in order to prepare your home for
sale. For example, if your goal is for a quick sale, this would determine
one approach. If you want to maximize your profit, the sales process might
take longer thus determining a different approach.
2. Keep the Reason(s) You are Selling to
Yourself
The reason(s) you are selling
your home will affect the way you negotiate its sale. By keeping this to
yourself you don't provide ammunition to your prospective buyers. For
example, should they learn that you must move quickly, you could be placed
at a disadvantage in the negotiation process. When asked, simply say that
your housing needs have changed. Remember, the reason( s) you are selling
is only for you to know .
3. Before Setting a Price - Do Your
Homework
When you set your price, you make
buyers aware of the absolute maximum they have to pay for your home. As a
seller, you will want to get a selling price as close to the list price as
possible. If you start out by pricing too high you run the risk of not
being taken seriously by buyers and their agents and pricing too low can
result in selling for much less than you were hoping for.
Setting Your Home's Sale Price
If You Live in a Subdivision - If
your home is comprised of similar or identical floor plans, built in the
same period, simply look at recent sales in your neighborhood subdivision
to give you a good idea of what your home is worth.
If You Live in An Older
Neighborhood - As neighborhoods change over time each home may be
different in minor or substantial ways. Because of this you will probably
find that there aren't many homes truly comparable to your own. In this
case you may want to consider seeking a Realtor ® to help you with the
pricing process.
If You Decide to Sell On Your Own
- A good way to establish a value is to look at homes that have sold in
your neighborhood within the past 6 months, including those now on the
market. This is how prospective buyers will assess the worth of your home.
Also a trip to City Hall can provide you with home sale information in its
public records, for most communities.
4. Do Some "Home Shopping" Yourself
The best way to learn about your
competition and discover what turns buyers off is to check out other open
houses. Note floor plans, condition, appearance, size of lot, location and
other features. Particularly note, not only the asking prices but what
they are actually selling for. Remember, if you're serious about getting
your home sold fast, don't price it higher than your neighbor's.
5. When Getting an Appraisal is a Benefit
Sometimes a good appraisal can be
a benefit in marketing your home. Getting an appraisal is a good way to
let prospective buyers know that your home can be financed. However, an
appraisal does cost money, has a limited life, and there's no guarantee
you'll like the figure you hear.
6. Tax Assessments - What They Really Mean
Some people think that tax
assessments are a way of evaluating a home. The difficulty here is that
assessments are based on a number of criteria that may not be related to
property values, so they may not necessarily reflect your home's true
value.
7. Deciding Upon a Realtor ®
According to the National
Association of Realtors, nearly two-thirds of the people surveyed who sell
their own homes say they wouldn't do it again themselves. Primary reasons
included setting a price, marketing handicaps, liability concerns, and
time constraints. When deciding upon a Realtor ® , consider two or three.
Be as wary of quotes that are too low as those that are too high.
All Realtors ® are not the same!
A professional Realtor ® knows the market and has information on past
sales, current listings, a marketing plan, and will provide their
background and references. Evaluate each candidate carefully on the basis
of their experience, qualifications, enthusiasm and personality. Be sure
you choose someone that you trust and feel confident that they will do a
good job on your behalf.
If you choose to sell on your
own, you can still talk to a Realtor ® . Many are more than willing to
help do-it-your-selfers with paperwork, contracts, etc. and should
problems arise, you now have someone you can readily call upon.
8. Ensure You Have Room to Negotiate
Before settling on your asking
price make sure you leave yourself enough room in which to bargain. For
example, set your lowest and highest selling price. Then check your
priorities to know if you'll price high to maximize your profit or price
closer to market value if you want sell quickly.
9. Appearances Do Matter - Make them Count!
Appearance is so critical that it
would be unwise to ignore this when selling your home. The look and "feel"
of your home will generate a greater emotional response than any other
factor. Prospective buyers react to what they see, hear, feel, and smell
even though you may have priced your home to sell.
10. Invite the Honest Opinions of Others
The biggest mistake you can make
at this point is to rely solely on your own judgment. Don't be shy about
seeking the honest opinions of others. You need to be objective about your
home's good points as well as bad. Fortunately, your Realtor ® will be
unabashed about discussing what should be done to make your home more
marketable.
11. Get it Spic n' Span Clean and Fix
Everything, Even If It Seems Insignificant
Scrub, scour, tidy up,
straighten, get rid of the clutter, declare war on dust, repair squeaks,
the light switch that doesn't work, and the tiny crack in the bathroom
mirror because these can be deal-killers and you'll never know what turns
buyers off. Remember, you're not just competing with other resale homes,
but brand-new ones as well.
12. Allow Prospective Buyers to Visualize
Themselves in Your Home
The last thing you want
prospective buyers to feel when viewing your home is that they may be
intruding into someone's life. Avoid clutter such as too many
knick-knacks, etc. Decorate in neutral colors, like white or beige and
place a few carefully chosen items to add warmth and character. You can
enhance the attractiveness of your home with a well-placed vase of flowers
or potpourri in the bathroom. Home-decor magazines are great for tips.
13. Deal Killer Odors - Must Go!
You may not realize but odd
smells like traces of food, pets and smoking odors can kill deals quickly.
If prospective buyers know you have a dog, or that you smoke, they'll
start being aware of odors and seeing stains that may not even exist.
Don't leave any clues.
14. Be a Smart Seller - Disclose Everything
Smart sellers are proactive in disclosing all known defects to their
buyers in writing. This can reduce liability and prevent law suits later
on.
15. It's Better With More Prospects
When you maximize your home's
marketability, you will most likely attract more than one prospective
buyer. It is much better to have several buyers because they will compete
with each other; a single buyer will end up competing with you.
16. Keep Emotions in Check During
Negotiations
Let go of the emotion you've
invested in your home. Be detached, using a business-like manner in your
negotiations. You'll definitely have an advantage over those who get
caught up emotionally in the situation.
17. Learn Why Your Buyer is Motivated
The better you know your buyers
the better you can use the negotiation process to your advantage. This
allows you to control the pace and duration of the process.
As a rule, buyers are looking to
purchase the best affordable property for the least amount of money.
Knowing what motivates them enables you to negotiate more effectively. For
example, does your buyer need to move quickly. Armed with this information
you are in a better position to bargain.
18. What the Buyer Can Really Pay
As soon as possible, try to learn
the amount of mortgage the buyer is qualified to carry and how much
his/her down payment is. If their offer is low, ask their Realtor ® about
the buyer's ability to pay what your home is worth.
19. When the Buyer Would Like to Close
Quite often, when buyers would
"like" to close is when they need to close. Knowledge of their deadlines
for completing negotiations again creates a negotiating advantage for you.
20. Never Sign a Deal on Your Next Home
Until You Sell Your Current Home
Beware of closing on your new
home while you're still making mortgage payments on the old one or you
might end up becoming a seller who is eager (even desperate) for the first
deal that comes along.
21. Moving Out Before You Sell Can Put You
at a Disadvantage
It has been proven that it's more
difficult to sell a home that is vacant because it becomes forlorn
looking, forgotten, no longer an appealing sight. Buyers start getting the
message that you have another home and are probably motivated to sell.
This could cost you thousands of dollars.
22. Deadlines Create A Serious Disadvantage
Don't try to sell by a certain
date. This adds unnecessary pressure and is a serious disadvantage in
negotiations.
23. A Low Offer - Don't Take It Personally
Invariably the initial offer is
below what both you and the buyer knows he'll pay for your property. Don't
be upset, evaluate the offer objectively. Ensure it spells out the
offering price, sufficient deposit, amount of down payment, mortgage
amount, a closing date and any special requests. This can simply provide a
starting point from which you can negotiate.
24. Turn That Low Offer Around
You can counter a low offer or
even an offer that's just under your asking price. This lets the buyer
know that the first offer isn't seen as being a serious one. Now you'll be
negotiating only with buyers with serious offers.
25. Maybe the Buyer's Not Qualified
If you feel an offer is
inadequate, now is the time to make sure the buyer is qualified to carry
the size of mortgage the deal requires. Inquire how they arrived at their
figure, and suggest they compare your price to the prices of homes for
sale in your neighborhood.
26. Ensure the Contract is Complete
To avoid problems, ensure that
all terms, costs and responsibilities are spelled out in the contract of
sale. It should include such items as the date it was made, names of
parties involved, address of property being sold, purchase price, where
deposit monies will be held, date for loan approval, date and place of
closing, type of deed, including any contingencies that remain to be
settled and what personal property is included (or not) in the sale.
27. Resist Deviating From the Contract
For example, if the buyer
requests a move-in prior to closing, just say no. That you've been advised
against it. Now is not the time to take any chances of the deal falling
through.
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Top>>
Common Mistakes Made With Money and How to Avoid Them
Everybody makes mistakes with their money. The important thing is to keep them to a minimum. And one of the best ways
to accomplish that is to learn from the mistakes of others. Here is our list of the top mistakes people
make with their money, and what you can do to avoid these mistakes in the first place.
1. Buying items you don't need...and paying extra for them in interest. Every time you have an urge to do a little
"impulse buying" and you use your credit card but you don't pay in full by the due date, you could be paying
interest on that purchase for months or years to come. Spending money for something you really don't need can
be a big waste of your money. But you can make the matter worse, a lot worse, by putting the purchase on a credit
card and paying monthly interest charges.
Research major purchases and comparison shop before you buy. Ask yourself if you really need the item. Even better,
wait a day or two, or just a few hours, to think things over rather than making a quick and costly decision you may
come to regret.
There are good reasons to pay for major purchases with a credit card, such as extra protections if you have problems
with the items. But if you charge a purchase with a credit card instead of paying by cash, check or debit card
(which automatically deducts the money from your bank account), be smart about how you repay. For example, take
advantage of offers of "zero-percent interest" on credit card purchases for a certain number of months
(but understand when and how interest charges could begin).
And, pay the entire balance on your credit card or as much as you can to avoid or minimize interest charges,
which can add up significantly.
If you pay only the minimum amount due on your credit card, you may end up paying more in interest charges
than what the item cost you to begin with.
Example: If you pay only the minimum payment due on a $1,000 computer, let's say it's about $20 a month,
your total cost at an Annual Percentage Rate of more than 18 percent can be close to $3,000, and it will
take you nearly 19 years to pay it off.
2. Getting too deeply in debt. Being able to borrow allows us to buy clothes or computers, take a vacation or
purchase a home or a car. But taking on too much debt can be a problem, and each year millions of adults of
all ages find themselves struggling to pay their loans, credit cards and other bills.
3. Learn to be a good money manager. Also
recognize the warning signs of a serious debt problem. These may include borrowing money to make payments on
loans you already have, deliberately paying bills late, and putting off doctor visits or other important
activities because you think you don't have enough money.
If you believe you're experiencing debt overload, take corrective measures. For example, try to pay off your
highest interest rate loans (usually your credit cards) as soon as possible, even if you have higher balances
on other loans. For new purchases, instead of using your credit card, try paying with cash, a check or a debit card.
There are also reliable credit counselors you can turn to for help at little or no cost.
Unfortunately, you also need to be aware that there are scams masquerading as 'credit repair
clinics' and other companies, such as 'debt consolidators', that may charge big fees for unfulfilled promises or
services you can perform on your own.
4. Paying bills late or otherwise tarnishing your reputation. Companies called credit bureaus prepare credit reports
for use by lenders, employers, insurance companies, landlords and others who need to know someone's financial
reliability, based largely on each person's track record paying bills and debts. Credit bureaus, lenders and other
companies also produce "credit scores" that attempt to summarize and evaluate a person's credit record using a
point system.
While one or two late payments on your loans or other regular commitments (such as rent or phone bills) over a
long period may not seriously damage your credit record, making a habit of it will count against you. Over time
you could be charged a higher interest rate on your credit card or a loan that you really want and need. You could
be turned down for a job or an apartment. It could cost you extra when you apply for auto insurance. Your credit
record will also be damaged by a bankruptcy filing or a court order to pay money as a result of a lawsuit.
So, pay your monthly bills on time. Also, periodically review your credit reports from to make sure their information accurately reflects the accounts
you have.
5. Having too many credit cards. Two to four cards (including any from department stores, oil companies and other retailers)
is the right number for most adults. Why not more cards?
The more credit cards you carry, the more inclined you may be to use them for costly impulse buying. In addition, each
card you own — even the ones you don't use — represents money that you could borrow up to the card's spending limit. If
you apply for new credit you will be seen as someone who, in theory, could get much deeper in debt and you may only
qualify for a smaller or costlier loan.
Also be aware that card companies aggressively market their products on college campuses, at concerts, ball games or
other events often attended by young adults. Their offers may seem tempting and even harmless — perhaps a free T-shirt or
Frisbee, or 10 percent off your first purchase if you just fill out an application for a new card — but you've got to
consider the possible consequences we've just described. Don't sign up for a credit card just to get a great-looking
T-shirt. You may be better off buying that shirt at the store for $14.95 and saving yourself the potential
costs and troubles from that extra card.
6. Not watching your expenses. It's very easy to overspend in some areas and take away from other priorities, including your
long-term savings. Our suggestion is to try any system — ranging from a computer-based budget program to
hand-written notes that will help you keep track of your spending each month and enable you to set and stick to
limits you consider appropriate. A budget doesn't have to be complicated, intimidating or painful — just something
that works for you in getting a handle on your spending.
7. Not saving for your future. We know it can be tough to scrape together enough money to pay for a place to live, a car
and other expenses each month. But experts say it's also important for young people to save money for their long-term
goals, too, including perhaps buying a home, owning a business or saving for your retirement (even though it may be 40 or
50 years away).
Start by "paying yourself first". That means even before you pay your bills each month you should put money into savings
for your future. Often the simplest way is to arrange with your bank or employer to automatically transfer a certain
amount each month to a savings account or to purchase a Savings Bond or an investment, such as a mutual fund that
buys stocks and bonds.
Even if you start with just $25 or $50 a month you'll be significantly closer to your goal. The important thing is to
start saving as early as you can even saving for your retirement when that seems light-years away so you can benefit
from the effect of compound interest. Compound interest refers to when an investment earns interest, and later that combined amount earns
more interest, and on and on until a much larger sum of money is the result after many years.
Banking institutions pay interest on savings accounts that they offer. However, bank deposits aren't the only way to make
your money grow. Investments, which include stocks, bonds and mutual funds, can be attractive alternatives to bank deposits
because they often provide a higher rate of return over long periods, but remember that there is the potential for a
temporary or permanent loss in value.
8. Paying too much in fees. Whenever possible, use your own financial institution's automated teller machines or the ATMs
owned by financial institutions that don't charge fees to non-customers. You can pay $1 to $4 in fees if you get cash from
an ATM that isn't owned by your financial institution or isn't part of an ATM "network" that your bank belongs to.
Try not to "bounce" checks that is, writing checks for more money than you have in your account, which can trigger
fees from your financial institution (about $15 to $30 for each check) and from merchants. The best precaution is to
keep your checkbook up to date and closely monitor your balance, which is easier to do with online and telephone banking.
Remember to record your debit card transactions from ATMs and merchants so that you will be
sure to have enough money in your account when those withdrawals are processed by you bank.
Financial institutions also offer "overdraft protection" services that can help you avoid the embarrassment and
inconvenience of having a check returned to a merchant. But be careful before signing up because these programs come with
their own costs. Whenever possible, use your own financial institution's automated teller machines or the ATMs owned by
institutions that don't charge fees to non-customers.
Pay off your credit card balance each month, if possible, so you can avoid or minimize interest charges. Also send in your
payment on time to avoid additional fees. If you don't expect to pay your credit card bill in full most months, consider
using a card with a low interest rate and a generous "grace period" (the number of days before the card company starts
charging you interest on new purchases).
9. Not taking responsibility for your finances. Do a little comparison shopping to find accounts that match your needs at the
right cost. Be sure to review your bills and bank statements as soon as possible after they arrive or monitor your accounts
periodically online or by telephone. You want to make sure there are no errors, unauthorized charges or indications that a
thief is using your identity to commit fraud.
Keep copies of any contracts or other documents that describe your bank accounts, so you can refer to them in a dispute.
Also remember that the quickest way to fix a problem usually is to work directly with your bank or other service provider.
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