Retirement is one of the major end goals for many of us. After putting in a few decades of hard work we hope to be able to break free from the daily grind and do what really makes us happy. That could be starting a new career, traveling the world, or simply enjoying a slower paced lifestyle. Whatever your idea of retirement is, there are plenty of roadblocks standing in your way.

In a perfect world you will have enough money set aside so that come retirement day you have absolutely nothing to worry about. You’re free to carry out your plans without the added stress of wondering whether or not you’ll have enough money to pay the bills. Unfortunately, most people don’t have this luxury. Instead, they come to the realization that they can’t afford to retire and end up spending the later years in their life unhappy because they have to either keep working or simply don’t have enough money to do any of the things they had hoped. Here are five reasons most people will retire broke and unhappy.

1. Not Saving Enough

Not saving enough has to top the list because let’s face it, not having enough money in retirement is the biggest problem. How much money do you really need to have saved up by retirement to fund your dreams? Well, according to a recent poll I took on the site most people feel they need between 1 and 3 million dollars saved by retirement. So, ask yourself where you stand. Are you on track? Do you have some catching up to do? Or do you feel there’s just no possible way to save up enough money by retirement? Even if you are behind in savings that doesn’t mean you should give up. You still have many years ahead of you to make a difference, and every little bit counts. One thing is for certain, and it’s that not having enough money saved for retirement will have a negative impact on your lifestyle down the road.

If you don’t have enough saved up for retirement a few things are certain:

• You may have to work longer.
• You may not be able to do the things in retirement you planned on.
• You may become a burden on your children.
• If you encounter serious health problems it could mean liquidating your assets and going on Medicaid.

If none of those things sound like fun you better start saving. Even if you’re in your 30s and haven’t put a penny aside for retirement it isn’t too late. Take advantage of your employer’s retirement plan such as a 401(k) or 403(b) if they offer one. This is the easiest way to get into the habit of saving since it comes right out of your paycheck and it’s pre-tax money. Even better, if they offer a match you need to at least save enough to get the match. That’s free money! This is the only time someone else will put money into your retirement account for you, so don’t miss out.

Beyond that you should set up your own retirement account such as a Traditional IRA or Roth IRA. It doesn’t matter if you can only afford to put a hundred dollars a month into your account, but you have to start somewhere. Even just $100/month over 30 years earning around 7% will put over $120,000 in your account. Sure, you won’t be able to live off just that, but you can’t tell me that having an extra $120,000 for retirement is a bad thing. So, start small, and start right now. Every little bit helps even if you are getting a late start when it comes to saving.

2. Making Poor Investment Choices

Did you know that you can be on track to save enough yet still find yourself in the poor house come retirement? Just ask all of the baby boomers who planned on retiring in the next few years and were invested too heavily in stocks. Their retirement plans were destroyed in a matter of months. Granted, we don’t have crystal balls and can’t predict what the markets will do, but you can follow some basic investing principals so that you’re not putting yourself at unnecessary risk.

Poor investment choices go both ways. You have those who might be far too aggressive and can’t whether a steep decline shortly before retirement, and you have those who invest far too conservatively from the start and come up short in the end. You need to strike a balance and adjust your investment strategy over time as you age and your needs change. There’s no magic portfolio that works for everyone, in all market conditions, all the time. But it’s up to you to understand what you’re investing in, what the risks are, and how those investments play a role in your long-term objectives.

Finally, don’t neglect fees. You can’t invest without fees, that’s just a fact of life. But in most cases you can limit how much you pay. It may not seem like much, but even choosing investments with 50 more basis points in annual fees could literally cost you over $100,000 by retirement. The sooner you make smart investment choices and understand the impact of fees, the longer your money has to grow so that it can adequately fund your retirement.

3. Neglecting Health Care

Want to retire broke and unhappy? Just ignore the impact that health care will have on your retirement. As a member of Generation X you may have seen this first hand with aging family members. Even when it looks like someone has set enough aside for a comfortable retirement it just takes one major health incident to derail everything. This country obviously has some flaws with its health care system, but that doesn’t mean you have to just take it.

Health care issues can ruin your retirement before it even starts. Did you know that disability is the number one reason for bankruptcy and foreclosure in this country? If you’re still working and rely on your income to pay the bills what happens if you get hurt or become disabled, either for a few years or permanently? In many cases people don’t have disability insurance and even if they qualify for Social Security Disability it isn’t enough to pay all the bills. Just a two year disability in your 30s could be enough to severely impact your retirement, especially if it causes a financial hardship such as bankruptcy or foreclosure. So, make sure you’re adequately protected even while working so that you don’t jeopardize your retirement.

An even bigger problem often comes in retirement. Our health is unpredictable for the most part. We don’t know what kind of health issues we will develop as we age, and depending on what it is and treatment required it could end up quickly draining your retirement fund. Don’t just assume that having Medicare and a Medicare supplement will do enough to cover most of your medical expenses. If you are in a situation where you need long-term care you’ll find that this isn’t covered by Medicare. And don’t be fooled by the name, but most long-term care stays are only a few years. But did you know that the average cost of a year of long-term care is upwards of $50,000 or more? Just needing a few years of care could quickly begin to wipe out your retirement nest egg. If you run out of money paying for this care you’ll either become a burden on your family while they try to pay for or provide the care. If they can’t keep up you’ll be faced with liquidating any assets you do have, and then will likely end up on Medicare. I don’t think anyone looks forward to that kind of retirement.

Finally, a little preventative health care goes a long way in helping you live a long and healthy retirement. Take some time while you’re young to make smart health choices today so that you’ll have a better chance of remaining healthy in retirement. Some good habits today could end up saving you hundreds of thousands in health care down the road.

4. Retiring Too Early

Raise your hand if you’d like to retire earlier rather than later. Stupid question, right? For most of us we’d love to retire a few years early and get a jump on doing the things we planned on in retirement while we’re still young and healthy. Unfortunately, early retirement is simply in the cards for most people. It really comes down to underestimating what just a few years of early retirement can cost financially. For example, say you and your spouse would like to retire at 62 instead of 65. Assuming you each earn $50,000 after taxes at your current job those three years of retiring early will cost you $300,000 in lost income. Even if you elected to begin drawing Social Security at 62 that isn’t going to come even close to replacing that income. If you have a pension, chances are taking it at 62 is also going to be a reduction in payout. So, depending on what your income needs are during those three years you could be draining your retirement account by a few hundred thousand. When you factor in the 20 or more years you still have in retirement that early retirement could significantly reduce how long your nest egg will last.

And it isn’t just about tapping into your retirement assets early. Let’s not forget about health insurance. You don’t qualify for Medicare until 65, so if you retire early where are your health benefits coming from? If you’re lucky enough to have a working spouse you might be able to get by using their plan, but what if you both want to retire early and you don’t have any retiree health benefits offered by your employer? Get ready to open your wallet and pay for an individual plan. This is a common oversight by many early retirees as they get dead set on retiring early and then underestimate the significant costs of health care until reaching age 65. This can be a costly mistake.

Retiring early is doable, but you have to plan well in advance for it. That means saving even more money and thinking about the impact of early retirement, both in terms of your nest egg and health care. If you rush into it like many people you could be giving up a significant chunk of your later retirement just to quit working a couple years early. Weigh your options carefully.

5. Lifestyle Creep

It’s just human nature that as you earn more money and become more successful you generally spend a little more money on the finer things in life. After all, isn’t that what it’s all about? You want to make more money so you can enjoy some of the fruits of your labor. It’s great to be able to buy things that improve your quality of life, but this lifestyle creep can go too far. It starts out with small stuff, but eventually it turns into a bigger house, nicer cars, and maybe even more elegant vacations. If your income goes up but your expenses also continue to go up the net result is often zero. You make more, spend more, but still don’t have enough left over to save more.

As you go through your career and begin making more money it’s important to keep your spending in check. You still might opt for a nicer car or a bigger house, but don’t let those things interfere with your ability to save. When you start making more money make sure you treat your retirement savings like any other expense. If you’re willing to spend 20% more on a new car payment you should be willing to put 20% more into your retirement account as well.

If you don’t increase your saving along with your other expenses you’re going to be in for a rude awakening upon retirement. What you’ve done is built up this more affluent lifestyle and when retirement comes you’re probably hoping to at least maintain a similar lifestyle but without going to work. If you haven’t been increasing your saving over the years to match the increase in lifestyle, guess what. You’re not going to have enough money to fund that retirement. Then you’ll probably find yourself unhappy in retirement since you had to reduce your lifestyle or try to continue that lifestyle and end up broke ten years into retirement. Neither of which is a situation you want to be in.

Will You Retire Broke and Unhappy?

Hopefully not, but as you can see, it’s pretty easy to do. While it’s easy to retire broke, it’s just as easy to start putting measure in place today to ensure it doesn’t happen to you. Start by saving more. Think you’re already saving enough? Think again. Even if you’re just getting started for the first time, every little bit helps. Now that you’re saving you need to make sure you’re investing it properly. Take some time to learn about your investments, understand what they are going to accomplish, and keep expenses low. Next, don’t underestimate health care costs both now and in retirement. Take steps today to make sure poor health won’t drain your retirement fund. If you want to retire early, make sure you plan for it. Early retirement requires additional savings and considerations when it comes to health care. And finally, don’t let lifestyle creep during your working years ruin your retirement. Keep spending in check and adjust your saving accordingly so there are no surprises in retirement.

If you can keep up with all of that you should be able to enjoy a wealthy, happy, and comfortable retirement.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

5 Reasons Why You Will Retire Broke and Unhappy

Plan Ahead to Avoid a Financial Holiday Hangover

Does this scenario sound familiar? You use credit cards to do your holiday shopping, promising yourself you’ll pay the debt off within two or three months. Six or eight months later (or more), you’re still paying, and those items that seemed like such bargains end up costing you 10 to 20% more than you thought thanks to the credit card interest.

For many Americans, this debt pattern is repeated year after year. Personal finance experts call this the “holiday hangover.” There are times when incurring credit card debt makes sense, but holiday gift-buying is not one of them. Using credit cards often leads to impulse spending, overspending, and increased debt.

A better approach is to save small amounts of money throughout the year in a special holiday gift fund. Make a list of all the people you’d like to give gifts to and how much you can afford to spend on each one, and then pay cash from the savings you’ve built up. When the cash is gone, you’re done shopping.

If you find it difficult to save money throughout the year you can join an old-fashioned Christmas Club, still offered by smaller community banks and credit unions. You put a small amount of money which is often deducted automatically from your paycheck, into a special Christmas Club account at your bank. The account usually earns interest at the regular savings account rate. In October, November, or December, the money gets transferred to your regular checking account and you’re ready to go shopping!

Don’t have a Christmas Club account where you bank? Don’t worry, it’s just as easy to create your own. If you want, you can simply open a new savings account at the bank and use that as your own Christmas Club account. You can set up direct deposit from your paycheck to fund the account or set up a recurring automatic money transfer into the account. But keeping the money in an easily accessible account at your bank can be tempting to dip into when money gets tight, so you might want to open a separate online savings account. By doing so you’re going to earn a little more interest and hopefully keep the money out of sight so it’s a little less tempting to tap into.

How to Avoid A Financial Holiday Hangover This Year

Here are four simple steps to help you stay out of debt this holiday season and avoid that financial holiday hangover.

1. Set spending limits.

Look at your monthly budget and figure out how much you can realistically afford to set aside towards holiday gift giving without going into debt. Your intentions may be good, but the reality is that most people have a depressing amount of debt after the holidays and are not able to pay it off in as timely a manner as they had hoped.

2. Make a list.

Follow Santa’s example. Make a list of all the people you need or want to buy gifts for, including small gifts for babysitters, teachers, newspaper deliverers, etc. These small gifts can add up and are often the cause of going over your gift budget. Include money you’ll spend on Christmas cards, postage, holiday parties, decorations, holiday entertainment, etc. Just like budgeting your household expenses, you need to budget for all of your holiday expenses.

3. Set a limit.

Decide how much you will spend on each person on your gift list, then add everything up and make sure it doesn’t exceed your overall spending limit. Try to allow a cushion for unexpected items or price fluctuations, but be firm on your limit. Sure, you might come across a last-minute gift you just need to have, but if you don’t stick to the limit the whole exercise is worthless.

4. Decide where to shop.

As important as deciding what you’re going to buy is deciding where you’re going to buy it. If you don’t wait until the last minute, you’ll have time to comparison shop. Prices fluctuate significantly from store to store and from one month to another. Stores start cutting prices 10 to 25% on holiday items like decorations, gifts, and winter clothing the week before Thanksgiving.. As Christmas approaches, some items are marked down as much as 40% but selections are limited. You’ll need to decide whether price or selection is more important to you and time your shopping accordingly.

Don’t neglect online retailers. Online shopping is very popular these days and there are plenty of deals to be found. In many cases you can even find low prices with free shipping. What’s better than taking care of your holiday shopping from the comfort of your home instead of fighting the crowds?

Follow these simple steps and you’ll avoid the nagging feeling that you’ve overspent on Christmas or other holiday gifts. You’ll also avoid the struggle to pay off the credit card bills for months to come. Instead you’ll feel in control and free of the dreaded financial holiday hangover.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Avoid a Financial Holiday Hangover This Year

Has your current financial situation got you tightening your belt and omitting things like gifts and entertainment from your budget?  Has your weekly trip to the movies been replaced by Netflix?  Do the books that you read primarily come from the library?  Do you find yourself wishing you had more money to buy the things that you enjoy most? Stop fretting and start typing!  By putting your good skills to use, you can acquire your fair share of blockbuster hits and bestsellers.  From writing book reviews to mystery shopping to peer-to-peer swapping, you can acquire an arsenal of reading material and DVDs galore with little to no effort.

Here’s a couple of ideas that will help you curb the urge to splurge but still provide you with all the loot you can handle:

Become a Book Reviewer

Being an ECW Press Shelf Monkey has its advantages.  You select the books that interest you the most by visiting http://www.ecwpress.com and create a list of titles that you would like to read and ECW Press puts your name into a drawing for free copies of their upcoming releases.  After reading the book, post your opinion on the publisher’s website and send them a link to your review on Facebook, MySpace, or Amazon.

Snag Advance Screening Tickets

Visit WildAboutMovies at http://www.wildaboutmovies.com and sign up for their newsletter.  Every time advance screenings of new films are available, you will be the first to learn about them.  Simply reserve your seats by selecting the city that you live in from the drop down menu.  Print tickets directly from your email after registering for the event.

Swap-o-rama

Register for a free account at PaperbackSwap located at http://www.paperbackswap.com and list titles from your library that you are no longer interested in.  You get a credit for each book that you give away and can use them to purchase titles from other members for the cost of postage.

Theatre Checks Anyone?

A number of legitimate secret shopping companies offer free admission to the latest flick in addition to armloads of refreshments free of charge.  Some also pay a set fee for completing the assignment.  Certified Reports, Inc., http://marketforce.com, is one company that conducts checks in a number of markets.  Registration on the site is fast and free—two words that make an impact in this economy.

Scavenger Hunting Fun

Set your books free by registering them on Book Crossing, http://www.bookcrossing.com, and seek out desirable titles by following the clues left by others on the site.  Half the fun of Book Crossing is hunting down the books that you want to read and passing on your good fortune to others.

Being budget conscious doesn’t have to be so dreary.  By “thinking outside the box” and making use of the resources available to you on the net, you can fill your empty bookshelves and squelch your need for films in a matter of minutes.

Charissa Arsaoui is a freelance writer for ChickSpeak, Buzzine, DisFUNKshion Magazine, Student Stuff, and a guest contributor for Wisebread.  She loves thrift related topics and can spot a bargain a mile away.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

How to Satisfy Your Need for Books and Movies Without Spending a Fortune

Build Up Your Holiday Gift Budget in Just Two Short Months

Can you believe that Black Friday is just a month away? It’s the biggest shopping day of the year and there will be countless deals to take advantage of to ramp up for the holiday season. After that, you have just under a month until Christmas. How does your holiday budget look this year? Have you been saving money for the holidays throughout the year or are you just now starting to seriously think about it?

Either way, the last thing you want to do this year is rack up another credit card bill just to buy gifts and maybe pay for some travel. If you do, you’ll be like millions of other Americans who find themselves with a bad financial hangover come January. So, with just two short months until Christmas how can anyone save up enough money to pay for the holidays?

Save $50 a Week Starting Right Now

Starting today, put $50 in a savings account meant for holiday spending. Do it right now! If you already have a savings account you can just use that, but it’s even better if you create and designate a new account strictly for this purpose so that the money doesn’t mysteriously disappear as it gets spent on other things. A good way to start is to open up an online savings account.

What will $50 a week add up to by Christmas? About $400. How many presents does $400 buy? It depends on who you’re buying for, but that’s a good chunk of change that can put a dent in your holiday budget. If you have to travel to visit family that could even cover your airline ticket. Either way, by tucking away just $50 a week from now until Christmas you can have a nice cushion set aside to use as you begin buying gifts.

Want to do one better? If your spouse or partner also works have them save $50 each week. Now you’ve just created an automatic savings plan that will put $800 in your account by Christmas. That isn’t chump change and it can really make a difference this holiday season.

Yes, You Can Afford $50 a Week

I know what you’re saying. We’re in a recession, money is tight, and there’s just no way to squeeze $50 out of my budget each week. Unless you’re already the most frugal person in the world and there is literally not a single penny left to be saved, there are plenty of ways here and there you can come up with a few dollars a week over the next two months.

1. Ditch or reduce your TV services for two months.

Sure, you’ve heard this a million times. Cutting back on your TV costs can mean big savings. Well, the reason you keep hearing it is because it’s true. But let’s look at the next few months specifically. Usually November and December are very busy months for most people. With all of the holiday travel, entertaining, shopping, and things that go along with the holidays that means you’re spending less time at home to actually watch TV. So, if you won’t have much time to enjoy your premium cable or satellite TV services you might want to downgrade for just a few months. If you reduce your package by $25 a month or cut out a premium channel or two until January that might save another $15-$30 a month. Total savings for just two months of fewer TV options could amount to $10-$15/week.

2. Eliminate just one meal out each week.

Ok, if you already make every single meal at home and never eat out this might not apply to you, but for most of us we grab a meal out at least a few times a week even if it’s just a quick lunch. But this is one of the easiest ways to save some money. Even if you only spend $5 or $6 a few times a week for lunch if you were to cut just one of those out and bring leftovers or a snack from home you instantly save that money.

Even better, if you regularly go out for dinner a few nights a week you can realize even bigger savings. Even a $15 meal at a casual dining resturant can add up to over $20 after a tip and a drink other than water. By just staying home one night a week and fixing a meal yourself you can probably do it for a fraction of the cost yielding a total savings of $10-$15 each week. If you’re married, remember, your spouse has to eat too and if you’re going out you’re spending twice as much while cooking at home usually doesn’t mean double the price so it’s an even greater savings.

3. Entertain at home instead of going out.

Who doesn’t like to have a good time with friends and family? Well, who says entertainment has to mean going out to eat, catching a movie at the theater, or some other costly night on the town? For the next month or two try ditching the entertainment nights out and do some entertaining of your own. Like to catch a movie every once and a while? Invite some friends over, pop some popcorn and have guests bring snacks and you can have a group of people watch a movie for nearly the cost of a DVD rental.

If playing games is more your thing you can organize a game night. Maybe it’s cards, poker, or just board games, but it’s a lot of fun to get people over and have a good time playing games that don’t even cost anything. And if you tell everyone to bring a dish to pass you’ve just killed two birds with one stone! No money spent on cooking dinner or going out to eat and no money spent on entertainment. The savings from just having one entertainment night at home could easily be $50 or more. Do this a few times before Christmas and you’ll probably save $100.

4. Only buy things that are on sale.

When you go grocery shopping, try to buy only things that are on sale. If you’re stocking up on some meat for the week and you see that pork chops are on sale but chicken breasts are not, don’t buy the chicken anyway just because you felt like chicken. Stick to the pork and substitute it for chicken in a dish or simply make a dish that works with pork instead. Same thing goes for produce. If a certain type of apple is on sale versus another type you normally buy, give the one on sale a try. Or if Yukon gold potatoes are on sale instead of Russets you should opt for the Yukon. The savings realized on produce and meat products can easily amount to a few dollars per item when bought on sale. Not only that, but it’s a great way to try new foods and introduce you to different items if you stray from your standard fare and opt for whatever is on sale. The total savings from buying only sale items at the grocery store can easily amount to $10-$20 each week.

5. Saving on holiday items themselves.

While I’ve highlighted a few ideas to save money each week on regular expenses, let’s not ignore the money spent on the holiday items themselves. First, start shopping early. If you have a gift in mind already it might not make much sense to wait until Christmas gets closer. Keep your eye out for sales right now. If you can save 10% on something now and not have to hassle with fighting the crowds as the holidays draw closer it could be the best 10% you ever saved. Also, shop online. It’s a lot easier to shop from the comfort of your home on your own time rather than hitting the stores and searching for items. So, go online and start pricing out the gifts you’re looking to buy and find the best deals. You can then use this information to comparison shop if you do want to check out some of the regular stores.

Finally, don’t go overboard with wrapping the gifts. Guys, raise your hand if you’re lazy and pay for a gift box or wrapping service. I’ve been guilty of this in the past, but that’s what I get for waiting until the last minute to do my shopping. Instead of paying to have your items wrapped you can buy a roll of wrapping paper for a couple bucks and do it yourself. It might not look as nice, but come on, the paper is just going to get ripped off and thrown away anyway. This goes for buying all the fancy bows and ribbons and stuff as well. Some people can spend $50 or more just on gift wrapping supplies! You’ve spent money on the gift already, so don’t spend even more just to cover it up with some paper.

If you really want to get a head start on next Christmas be sure to hit the stores in the few days after and stock up on your wrapping paper and decorations. As soon as the holiday is over you’ll see stuff marked down 50% or more. Buy your wrapping paper, bows, tags, or other decorations you know you’ll need after Christmas and throw them in your attic or storage until next year to realize big savings.

Don’t Let the Savings Stop There

As you can see, it’s pretty easy to come up with an extra $50 each week by making a few small changes to your lifestyle. While this might work for a few months to help you build up that holiday spending money, don’t let it stop there. You’ll probably find that after making a few of these changes that it really isn’t much sacrifice. So, instead of reverting back to your old ways in January you should strive to keep these habits. Think about it this way — if you save $50 a week for the entire year you’ve set aside $2,600 just by making a few minor lifestyle changes. If your spouse does the same thing you’ve just saved over $5,000. That can go a long way in helping you build an emergency fund, invest in an IRA, or apply towards your child’s college fund.

These are just a few ideas and not everyone will be able to utilize them all. But what are some of your money saving tips that can add up without making a huge sacrifice on your lifestyle?

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

How to Save Money for Christmas in a Short Amount of Time

Ah, college. Some say it’s the best time of your life, and while I wouldn’t necessarily agree or disagree with that, there is one drawback about college: you’re usually on a pretty tight budget. As college becomes more and more expensive, and you have to take out more and more loans, there’s not a lot of extra cash to go around for you, which is why it becomes even more important to watch how you spend your money. Here are seven tips that might help you save a little bit of money:

1. Assess your goals

This one should start even before you get to college. For example, think about what you want to do with your career. Getting a degree is important, but paying the high price of a private college for a degree that has limited earning potential could prove to be a waste. This doesn’t mean that some degrees are bad, but you have to realistically look at the consequences. If you’re spending $30,000 a year on a degree that might only bring in $40,000 a year without a lot of upward potential you could be setting yourself up to be broke or in debt and trying to pay off student loans for the next ten years instead of really getting ahead financially. So, think about your situation and see if maybe attending a local or state university where tuition could be much cheaper might actually be a better financial move.

2. Save money on books

There are a variety of ways to do this. First, you can buy used books. Most times you’ll look to use the book for one semester and then sell it. Since you’re essentially just renting the book does it really matter if it’s new? Unless the class demands a new version that can only be had new there is almost never a reason to buy new over used. Other times you can buy the electronic version of the same book, so inquire to see if this is an option for any of your courses. Textbooks can be a silent budget killer as they add up fast. It’s not uncommon to spend $500 or more each semester on books that you’re only going to use for a few months.

3. Carpool

This will depend on whether or not you live on campus or commute to college, but we all know how much money you can save if you’re not using a lot of gas. If you live off campus with some roommates you should try to schedule times to get to and from campus as a group so that everyone isn’t driving to the same place at different times. Understandably, this isn’t always possible, but you should try to cut back on driving when you can to avoid buying gs, paying for parking, and the usual hassle of getting around campus.

4. Live in the dorms for a while

Don’t underestimate the benefits of living on campus. As a young adult there’s nothing more exciting than going out on your own and getting an apartment with some friends, but there are a lot of hidden costs associated with apartment living. You have higher transportation costs, utilities to pay, and your own meals to prepare. Except what usually happens is people get lazy or bogged down with classwork so you end up going out or ordering a lot of delivery food which can get real expensive. So, before making the jump off campus be sure you weigh the true cost compared to living in the dorm for another year.

5. Get a job

Your parents have probably been telling you this for years, but it’s true. Get a job and start making some money while taking classes. Will working eat up some of your free time? Sure. But it also brings in money that can help offset college costs and possibly even give you experience that will help you land a job when you graduate.

I’ve found on-campus jobs to be advantageous for a few reasons. One, since its on-campus it should be close to your classes. In some cases it might be within walking distance of your dorm, apartment, or your next class. Two, a lot of campus jobs are very homework friendly. That means you have a lot of idle time where you can get work done while on the job. Plus, they are very flexible in scheduling. Third, this gives you a chance to network with other students and possibly even faculty. Better connections could mean better job opportunities upon graduation.  Finally, depending on what type of financial aid you receive, you might even get Federal Work Study, in which case you don’t have to pay taxes on what you earn. What could be better than that?

6. Use school printers

Unless you have your own laser printer, chances are you’re going to burn through a lot of ink with your InkJet printer. You will be printing off thousands of pages in college and that ink and paper can be really expensive. In many instances colleges already charge you a certain amount for printing in the computer labs so make sure you take advantage of it.  When your professor wants you to read some 80 page research paper in a PDF he gave you do you really want to sit on the computer and read the whole thing? And do you want to waste your precious ink and paper to print it off? Use your school’s printers and have it printed for a fraction of the cost.

7. Don’t eat out so much

College students are notorious for eating out and ordering delivery food. Those late study sessions work up a big hunger and it’s easy to just call and order a pizza. Or, maybe you’re someone who likes to get work done in the coffee shop. Nothing wrong with that, but if you’re spending five or ten dollars every time you’re in there for a coffee and a snack it can really add up if you’re doing that five days a week. So, cut back on dining out. If you’re in the dorms and have a meal plan just make sure to do the bulk of your eating there. If you’re on your own for food just be sure to keep cost in mind and buy some staples to keep around the apartment so that you can make up a quick meal without spending a fortune.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

7 Easy Ways You Can Save Money in College

You may have already packed up your patio furniture and harvested everything from your garden, but that doesn’t mean it’s time to sit around the house and dream about next spring. Sure, you might not have to mow the lawn, tend to the garden, or host dinner parties out on the patio for another six months but now is the time to think about making some purchases that will save you a ton of money next year.

Every fall retailers have to clear their shelves to make way for all the new holiday items and cold weather products. That means big discounts on summer gear. It might not make much sense to buy a new bathing suit in October if you aren’t going to be able to use it until May or June, but the savings could make it worthwhile. Here are some top discounts you’ll see at various retailers this fall.

Spring and Summer Clothes

This probably goes without saying, but things like shorts, summer style shirts, sandals, and swimsuits will top the clearance racks this fall. In fact, many of these items even start going on sale before Labor Day and if you wait too long you might not even be able to find many summer clothes. So be sure to stock up as the cool weather eases in. It isn’t uncommon to find discounts of up to 50% off so it’s worth picking up some of next summer’s wardrobe this year.

Lawn and Garden

If you live in a cooler part of the country you know that once fall and winter arrive there is little gardening to be done, no lawns to be mowed, and less time spent outdoors as a whole. So most of us pack up the garden tools, the lawn mower, and cover up the patio furniture until the warm weather returns in the spring. If you need a new lawn mower, buy it in the fall. Many large chain stores will begin to drop the prices on law mowers and other power equipment by as much as 30% after Labor Day. I know, it stinks to spend good money on a brand new mower only to have it sit unused for a number of months, but when you consider the savings it is worth the wait.

Don’t forget about plants. There is nothing better than going to the nursery for the first time in the spring and basking in all of the great new plants, but that’s when everyone is buying and when prices are at their highest. In the fall most places are simply trying to get rid of as many plants as possible before the cold weather sets in and either kills them or forces them to take the plants back to the greenhouse where they take up valuable space. You can find some plants late in the year going for as much as 80% off!  In fact, the best time to plant a lot of species is during the fall, so as long as you still have a little warm weather ahead of you it is possible to make a big upgrade to your landscape at a fraction of the cost. Sure, you won’t see the results until next spring, but plants are expensive. Plan ahead and find the discounts this fall.

New Cars

I’ve talked about this many times before, but I’m not a fan of buying new cars. That being said, if you do want to buy a new car your best bet is to wait until the new models start to hit showrooms. For most brands that happens in September. But don’t rush out in September and expect killer deals on last year’s models just yet. It’s all about supply and demand, and if you wait another month or two and head into October and November most dealerships will start getting anxious about unloading the last year models to make room for this year’s model. The more pressure they have to reduce inventory, the better the deals you’ll find.

If you think about it, just because you’re looking at last year’s model instead of the new model just released it doesn’t change the fact that it’s still a new car. Sure, you might not get a certain bell or whistle that may have just been released in the new model, but it’s still a brand new car only now you’re likely to get it for 10-20% cheaper than you would have just a few months ago.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Best Things to Buy in the Fall – Find the Biggest Discounts and Sales on These Items This Fall

In a few short months, you’re probably going to give yourself a money-related New Year’s Resolution that will last all of about two or three weeks. It might be to save more money or spend less. It might be to start keeping a budget or invest more in the stock market. Whatever it is, the odds of you keeping your resolution past a few weeks is really small because that’s how resolutions are. Just because the calendar says January 1 doesn’t mean you’re a different person.

So, rather than just making a resolution, why not make it harder for you to do the things you want to avoid? Let’s talk about creating some financial roadblocks that will help you be more fiscally sound.

Freeze Credit Cards

Debt busters have used this technique for years. Take your credit card, wrap it in paper, and freeze it in a block of ice. If you want to spend it, you’ll have to wait until after the block of ice thaws before you can read the numbers (the paper is crucial, otherwise you might be able to read the numbers!). This will prevent you from making spontaneous spending decision, like buying something you saw on Amazon.com, as long as you don’t have your payment information presaved.

Don’t Save Payment Information

Amazon.com was very clever when they created their 1-Click purchase system. You could click one button and, since your payment information was saved in the system, could have a purchase happen with very little intervention. You can help curb some of your spending simply by deleting your payment information from an account. The next time you want to buy something, you may discover that your credit card is in the other room, maybe frozen in a block of ice, and you really don’t want that product as much as you want to keep sitting down! This has the added benefit of additional security. Since your data isn’t stored elsewhere, it can’t be stolen there either.

Lock Up Your Money

This tip is another dual-benefit roadblock. “Lock” up your funds by saving them in a bank CD (Certificate of deposit). A certificate of deposit is a type of deposit account where you can get a higher interest rate than a regular savings or checking account. The downside is that a CD will have a maturity period and you won’t be able to withdraw your funds from the account without a penalty. Generally a CD will charge you several months of interest if you want access to your money. That interest penalty will probably be enough to convince you not to take out your money.

Don’t Carry A Lot of Money

With your credit card frozen in a block of ice, the next step is to carry a little bit of money on your person. I’m always hesitant to advise this because of emergencies but if you carry around a debit card, it’s not too bad. By carrying only a little bit of money, you aren’t tempted to spend it because you’re carrying so little. It also means you have less money to spend, should you really really really want to buy something. If you do end up needing cash, you can always find an ATM. If you end up needing a lot, you can always rely on your debit card.

What did you think of these financial roadblocks? Are there any that you current use or a roadblock I haven’t mentioned?

Jim writes daily at his personal finance blog Bargaineering and can be found on twitter as bargainr.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Four Fiscally-Fit Financial Roadblocks

Fall is in the air and that means many employers begin their open enrollment period for benefits. Even if your employer doesn’t do open enrollment in the fall, keep reading. Your employer provided benefits are an important aspect of your finances so it’s a good idea to study your options carefully.  It’s also important to realize that many benefits only allow you to make changes during this window of time unless there is a significant life event, so your decision will likely be with you for another year.

First of all, things change in your life. During the course of a year you may have experienced many issues that could have a substantial impact on how your benefits should be set up. Second, you want to make sure you are adequately covered while not over insured. Finally, it’s a good time to look at your retirement savings plan through your employer. If you aren’t enrolled, you probably should be. If you are enrolled, make sure you are contributing enough and getting match money if available.

Health, Dental, and Vision Insurance

This is a major issue for many people because we all know health care costs are continuously increasing and health care providers through your employer may be increasing their prices or changing coverage options. Make sure you understand what type of coverage you need and how the plans differ. Are you single or are you married? Have children? You will typically be presented with a few coverage options with different prices for each. Generally, the cheaper the option, the higher the deductibles and possibly lower coverage. But don’t just spring for an option based on price alone. Take a look at your medical needs. Do you require regular prescriptions or doctor visits? Do you have contacts or glasses? Many of these questions will play a part in how much coverage is adequate without paying too much for it. There is always the possibility of a medical emergency as well, but unfortunately those are unpredictable. So, start with what you know about your medical needs and use that as a basis for determining how much coverage you should opt for.

Life Insurance

This option usually does not get enough attention, but it is a very important benefit if your employer offers it. Most employer group term life policies by default provide you one times your annual pay at no cost to you. For some, that is all they offer. For others, they allow you to purchase additional insurance for an additional fee. Most even allow you to add this additional insurance without getting an exam or submit any health information. My recommendation is to take advantage of as much additional insurance as they offer where you do not have to submit to an exam. As an example, my employer offers an insurance benefit of one year’s salary with the option to have a benefit of 5 times my annual salary without an exam. The cost? Under $3.00 per pay period, or roughly $6.00 a month. That small amount of money that comes out of my paycheck provides a tremendous benefit to my spouse or beneficiary in the event I die.

Keep in mind that even though these employer group life insurance plans may be cheap, they are only good while you’re working for them. So, you could go from being well covered to having no coverage at all if you lose your job or quit. So, begin thinking beyond your employer’s plan. It’s great to have while you’re still working, but you have to think about your insurance needs beyond that as well.

Finally, consider the health savings account option if it is offered. The HSA can provide an easy way to put some money away for regular medical expenses while saving money on taxes at the same time.

Tax Exemptions

A lot of people don’t even recall doing this, but remember when you were hired how you had to fill out that tax form for exemptions? That determines how much money is withheld for taxes for each paycheck. Do you get a tax refund every year? You may be withholding too much. Have a tax bill each year? You probably aren’t withholding enough. Or maybe you bought a house recently, had a child, or some other significant tax event. These events entitle you to different tax deductions and credits where you could benefit by changing your exemption status with your employer. Maybe you can free up more money each paycheck to pay off some debt or put into your retirement fund, or possibly you can finally have a little more withheld so you don’t have to write a check to the IRS come April.

Learn more about how to change your W-4 tax exemptions.

Retirement Savings

More than likely your employer offers some sort of retirement savings plan. It could be a 401(k), 403(b), 457, or similar profit sharing plan. Unfortunately, only about 70% of eligible employees contribute to these plans. Many employers even offer some sort of matching program, which is essentially free money available to you. Every plan is different so it’s hard to say exactly what you should be doing with your plan, but take the time to read up on yours. They may have changed fund offerings or even a matching or vesting schedule that could significantly impact your financial plan. The bottom line is there are many benefits to contributing to these plans and with uncertainty of Social Security and pensions you should seriously consider signing up if you don’t currently have any automatic retirement savings plan. If you are already enrolled, congratulations, but you aren’t off the hook just yet.

While most retirement plans don’t follow the same open enrollment schedule as other benefits it’s still a good reminder to check on your account. Look at the performance and your investment allocation. Make sure it is still suitable for you and that you are taking advantage of as much match money as you can. You also want to look at how much of your salary you are deferring into the plan. If it is 5% currently, consider bumping it up 1% this year. Typically a 1% increase may end up only being $10-20 extra, but while a small amount, will still increase your savings even faster.

Check On Your Benefits

Whether your employer has open enrollment periods this fall or not, or even if you are open to changes all year, now is a good time to review all your options and reflect on what changes have occurred in your life during the past year and make the changes necessary to maximize your benefits while ensuring you aren’t missing opportunities or wasting money.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Take Time to Learn About Your Benefits During Open Enrollment

Does it always seem that your money never goes as far as it should? One of the main culprits are the slow money leaks that we all have. These are generally recurring monthly expenses for a subscription or service that by itself appears quite small, but when you factor in dozens of these potential leaks it can drain hundreds of dollars from your budget each month. You know what I’m talking about. Cable bills, gym memberships, magazine subscriptions, or even regular dues to an organization. Each one may be just a small monthly payment but they add up faster than you realize.

A lot of people focus on the big things when trying to get spending under control, and that’s not a bad thing. For example, buying a used car instead of new is a single purchase that can immediately save you thousands. You should still be doing these things, but don’t neglect the little things. Plugging even the small money leaks can lead to significant savings.

Examine Your Memberships and Subscriptions

How often are you using that gym membership that you signed up for in January as part of your New Year’s resolution to get into shape? Memberships like these can actually be quite costly and if you aren’t getting the full use out of the service you are probably throwing money away.

Another good example are the video rental services such as Netflix or Blockbuster. How many movies do you actually receive per month versus what plan you are on? Do you really need to have 3 videos out at one time? If you watch even one or two movies per week you can likely get by on a lesser plan and that could save five bucks a month. Also consider suspending the service during the summer months. You’re more likely to be watching less TV, so if you can eliminate a $12/month fee for six months out of the year you’re saving over $70.

Paper Media Subscriptions

Another big drain comes from newspaper and magazine subscriptions. Personally, I love magazines so I subscribe to quite a few. Unfortunately I often find that some magazines will get buried under the mail and go unread for weeks. Clearly if a magazine is finding itself rarely read it can probably be canceled. You can find most magazines at the library or the bulk of the material can be found online. Examine your magazine subscriptions and see which ones you can live without.

Newspapers are an area that really add up since they can be quite expensive. We get a daily subscription but there are many days during the week when I’m busy that I’ll rarely get past the first section. Most of the reading comes during the weekend so changing the subscription from daily delivery to Sunday only alone could save over $10 a month. Make sure that with your newspaper and magazine subscriptions that you are really getting the most out of them, otherwise cancel or cut back on the services.

Entertainment Subscriptions

It is no surprise that television and internet services can be very costly. Some households can spend upwards of a few thousand dollars a year on tv and internet service. Take a good look at what your true needs are and find out what cuts can be made. Do you really need that $10-$15 a month premium movie channel? How about the super deluxe platinum package with 500 channels when you only watch a handful of channels?

Even if you find you do want some premium service you generally don’t have to subscribe to it year round. If you want the sports package to catch your favorite college football team do you really need to pay for that package from February through July? Or maybe you subscribe to HBO because you’re a diehard Entourage fan. Again, these types of series don’t generally run new episodes year round and you could save a lot of money by only signing up when you actually want to catch the shows. Again, take a $15/month premium channel and pay for it for only three months instead of the whole year. You just saved $135.

Finally, even if you feel you can’t make any cuts you can still save money with a quick phone call. As I generally do every six months or so I call my cable provider and inform them that I am shopping around considering switching to the dish or that XYZ provider can give me the same service for a lower price.. I can almost always find someone who will be willing to cut my cable rate or enroll me in a promotion for a few months which can easily add up to a hundred bucks or so in savings.

Add It All Up

Remember, the little things add up. Saving $5 here and there may not seem like much, but consider what some small savings amount to over time. Save $5 by changing your Netflix subscription, cancel that $20 a month gym membership you rarely use, reduce your cable bill by $20 and get rid of a few magazines you don’t have time to read and you may realize a monthly savings of $50 or so dollars.

What does $50 a month actually buy you? That could pay a utility bill, it could be an additional $600 going into your retirement account or work towards building your emergency fund. Another $600 a year applied to the principal of a high-interest credit card can also put a nice dent in that debt you’ve been trying to eliminate. Whatever the case may be for you, use that as motivation to cut back on these financial leaks that can slowly drain your bank account.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Plug Your Money Leaks and Save Hundreds of Dollars Painlessly

I think we can all agree that a college education can be expensive. In fact, in many cases a four year degree can easily run upwards of six figures. You may have recalled one of my posts last week that talked about saving for your child’s college education versus saving for retirement. This generation is in a unique position of having to not only focus on saving for retirement, but trying to balance the inevitable college expenses and possibly even helping to support aging parents.

That is a lot of financial responsibility falling on our shoulders. Luckily, when it comes to financing a college education there are a lot of options out there. Here’s an interesting graphic that was passed along to me that illustrates the true cost of college and student loans. It’s some easy reading for a Friday. Do the numbers surprise you?

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Student Loans by the Numbers