Saving Money

A downed tree limb lies across power lines in Belmont, Mass. in this 2011 file photo. The key to saving money on your heating bill this winter is insulation, insulation, insulation, Colley says. (Michael Dwyer/AP/File)

Winter is coming. Eight ways to prepare your home.

By Angela Colley, Contributor / 10.28.12

The Environmental Protection Agency’s Energy Star program says the average household spends more than $2,200 a year on energy bills – with almost half of that going toward heating and cooling.

To add insult to injury, you could be throwing money out the window if your home isn’t energy-efficient. Leaking windows, poorly insulated water heaters, and clogged air filters are all budget busters.

But you might be able to fix your home’s energy deficiencies yourself for cheap.  

1. Seal air leaks

According to the advocacy group Energy Impact Illinois, leaks around your house can add up to a 15 to 35 percent air loss. Instead of heating the whole neighborhood this winter, check for leaks by holding up a lit candle to common trouble spots like:

• Window frames
• Door frames
• Outside vents to your dryer
• Baseboards
• Spaces around window air conditioning units

If the candle flickers, you’ve got a leak. Pick up a tube of caulk (about $5 in hardware stores) and use it to seal up any leaks.

2. Add insulation

Insulation helps keep cold air out and warm air in during the winter. The easiest place to add insulation is in your attic. The Energy Star program recommends having 12 to 15 inches of insulation in your attic. If you’re not sure how much you have, look at an unfinished portion of your attic floor. If the insulation is sitting below the floor joists, you need to add more.

As we mentioned in the video, it will cost about $500 to buy the insulation for an average-size house. It should take about two to three hours to complete the project. If you’re not sure how to install insulation, check out this how-to video on Monkeysee.

3. Check your air filters

If your air filter is dirty, your central air will have to work harder to heat your home, costing you more money. Over time, dirty and clogged filters can also cause bigger (and costlier) problems.

Once every three months, swap your old filter out for a new one. It only takes a couple of minutes, and you can pick up replacements at a hardware store.

4. Install a programmable thermostat

If you’re still using a manual thermostat, you’re wasting money. The Energy Star program says a programmable thermostat will save you about $180 a year in heating and cooling costs.

You can buy programmable thermostats pretty cheap at hardware stores, big box retailers, and online. For example, I found a basic model for $22.24 on Amazon and another model for $34.24 on Newegg. Once installed, set the thermostat to automatically turn down when you’re away from the house or asleep and score automatic savings.

5. Insulate your water heater

According to the U.S. Department of Energy, water heating can make up 14 to 25 percent of the energy used in your home. Wrapping your water heater is one easy way to lower those costs.

In the video, Home Depot employee Charles Freeman said if you touch your water heater and it feels hot, you’re losing energy. You can buy a fiberglass and plastic insulating blanket for less than $25, and it only takes about 30 minutes to install. Best of all, the U.S. Department of Energy says the blanket will pay for itself in one year or less.

6. Seal your ducts

Over time the seals around your ducts will deteriorate and start to leak. According to the Energy Star program, up to 20 percent of the circulating air in your home is lost due to loose or faulty ducts.

While you would have to hire a technician to repair ductwork inside your walls, you can repair and seal the visible ducts in your attic and basement yourself. Pick up a roll of HVAC foil tape (about $15 in hardware stores). Wrap the tape around the joints to stop any leaks. If you find any visible holes, patch them with a fiberglass weave (about $7) and seal them off with a water-based mastic air duct sealant (about $12).

7. Close off your attic

The sheet of plywood covering your attic stairs is hardly leak-proof. During the winter, heat will escape through the sides of the cover and into your attic.

To stop the leak, you can install an attic tent, which is an insulated fabric container that fits over your pull-down stairs (they start at $200 on AtticTent.com), or you can go the cheaper route. Attach rigid foam installation pads (about $7 at hardware stores) to the back of the attic hatch and then apply foam weather stripping tape (about $3 at hardware stores) along the edges of the attic panel. In less than an hour, you’ll have an airtight seal.

8. Insulate your light switches and outlets

If you’ve ever replaced a light switch or outlet cover, you probably noticed the gaping hole in the wall behind that cover. The problem is, those thin plastic covers don’t provide a great barrier and cold air can get through that hole into your house. To combat the cold leaks, install foam gaskets underneath your light switch and outlet covers.

You can pick up pre-cut foam covers that will fit around electrical receptacles and light switches at hardware stores (about $2 for a set of eight). Since they’re pre-cut, you just need to unscrew the cover, pop the foam cover on, and reattach the light switch or outlet cover plate.

Finally, don’t forget to reverse your fans. During the summer, your ceiling fans should run counterclockwise, which pulls the air down toward you. During the winter reverse the ceiling fan’s direction by flipping the toggle switch on the base of the fan. Run on a low setting – the fan will draw cool air from the floor up toward the ceiling, making the room feel warmer.

Angela Colley is a writer for Money Talks News, a consumer/personal finance TV news feature that airs in about 80 cities as well as around the Web. This column first appeared in Money Talks News.

A woman fills her car with gas from Costco in Los Angeles, California, in this 2011 file photo. According to Bowsher, Costco boasts one of the best return policies among retailers for the holidays. (Lucy Nicholson/Reuters/File)

The 4 best (and worst) return policies this holiday shopping season

By Karla Bowsher, Contributor / 10.27.12

If you fail to read a store’s return policy before shopping there, you could get stuck with an item that doesn’t work out. But if you fail to read return policies before gift shopping, it’s a friend or relative who could get stuck with an unwanted item.

Fortunately, just about every store’s return policy can be found online these days, and they’re not hard to read if you know what questions to ask…

How to interpret a return policy

In-store purchases

1. What’s the time window for return? This is especially important for gifts. For example, if you buy a Christmas gift on Black Friday from a store with a 30-day return window, the recipient won’t be able to return it after Christmas.
2. Will the refund be in the original form of payment? Some stores issue certain refunds only in the form of store credit – especially for gift returns.

Online purchases

1. What’s the time window for return?
2. If you return an online purchase by mail, will you have to pay for the return shipping? (And will the refund be in the original form of payment?) Most stores will make you pay to ship a return, which is why the next question is important.
3. Are online purchases returnable to brick-and-mortar stores? (And will the refund be in the original form of payment?)

The best return policies

The following stores offer a return window of at least 90 days, provide a full refund, and allow online purchases to be returned to stores…

Costco

• Time window? None for most items (the exceptions – TVs, projectors, computers, cameras, camcorders, tablets, MP3 players, and cell phones – must be returned within 90 days).
• E-purchases returnable to stores? Yes – and they’ll even refund the shipping.
• E-purchases returnable by mail? Yes, they’ll email you a UPS label, although you’ll have to take the package to a UPS drop-off spot.
• Note: Costco even allows returns of Photo Center purchases that you’re dissatisfied with – just call 866-459-9284. They’ll also refund your membership fee at any point if you’re dissatisfied.

L.L. Bean

• Time window? None.
• E-purchases returnable to stores? Yes.
• E-purchases returnable by mail? Yes, but you pay the return shipping unless you’re an L.L. Bean Visa cardholder.
• Note: L.L. Bean never charges to ship purchases to you either.

Nordstrom

• Time window? None.
• E-purchases returnable to stores? Yes, with the packing slip and the credit card used for the purchase.
• E-purchases returnable by mail? Yes, but you pay the return shipping.

Zappos.com

• Time window? 365 days.
• E-purchases returnable to stores? N/A (Zappos is online only).
• E-purchases returnable by mail? Yes, if the item is in the condition you received it in and in the original packaging. You’ll receive a prepaid return shipping label.
• Note: Zappos never charges to ship a product to you either.

Worst return policies

If a gift recipient wants to return your gift, these stores will only offer them store credit, so make sure the gift recipient is a fan of the store or avoid gift-shopping there…

Babies R Us

• Time window? 90 days for most items (see policy for exceptions).
• E-purchases returnable to stores? Yes, but only for store credit.
• E-purchases returnable by mail? Yes, with the original packaging and any paperwork, but you pay the return shipping unless the purchase was damaged or defective.
• Note: In-store purchases returned to a store are generally refunded in the original form of payment, but gifts are an exception. So even if you bought a gift in a store and it was returned to a store, the recipient will still only receive store credit – assuming they have a gift receipt.

Kohl’s

• Time window? None.
• E-purchases returnable to stores? Yes, with receipt. If you don’t have a receipt – or if you have a gift receipt – you can still return the item but only for store credit.
• E-purchases returnable by mail? Yes, but you pay the return shipping.
• Note: If a gift was purchased in a store, it must be returned to a store and can still be returned only for store credit.

Macy’s

• Time window? 180 days for most items (see policy for exceptions).
• E-purchases returnable to stores? Yes, with invoice, for most items (excludes area rugs).
• E-purchases returnable by mail? Yes, with invoice and return form, for most items (excludes bridesmaid dresses), but you pay the return shipping.
• Note: Gifts can be returned only for store credit, and food and gourmet gifts are nonreturnable.

Toys R Us

• Time window? 90 days for most items (see policy for exceptions).
• E-purchases returnable to stores? Yes, but only for store credit.
• E-purchases returnable by mail? Yes, with original packaging and any paperwork, but you pay the return shipping unless the purchase was damaged or defective.
• Note: In-store purchases returned to a store are generally refunded in the original form of payment, but gifts are an exception. So even if you bought a gift in a store and it was returned to a store, the recipient will still only receive store credit – assuming they have a gift receipt.

Karla Bowsher covers consumer, retail, and health issues for Money Talks News, a consumer/personal finance TV news feature that airs in about 80 cities as well as around the Web. This column first appeared in Money Talks News.

In this May 2012 file photo, a Visa credit card is tendered at opening of the Superdry store in New York's Times Square. Credit counseling is a great tool in tackling debt problems, but admitting a problem can be the hardest first step. (Richard Drew/AP/File)

The woman who paid down $120K in credit card debt in five years

By Michael Koretzky, Contributor / 10.20.12

Francine Bostick keeps her monthly bills in a basket on her desk at home. Also in that basket is a clear plastic sandwich bag containing 13 cut-up credit cards – a reminder (and a warning) of the decades she spent racking up $120,000 in credit card debt.

She cut up those cards only five years ago. Today, she’s debt-free with a modest savings account.

“I have to look at that bag all the time,” says Francine, a custodial manager for a Kansas university. “I see it every time I pay my bills.”

That sandwich bag was just one of the tactics – big and small – that Francine used to pay off her six-figure debt. The biggest was swallowing her pride, admitting she had a problem, and seeking credit counseling. For her accomplishment, she and her husband were honored this month as “Clients of the Year” by the nonprofit National Foundation for Credit Counseling (NFCC).

RELATED: Can you manage your money? A personal finance quiz

Two weeks ago, Francine flew on an airplane for the first time in her life and accepted the award at an annual convention of credit counselors in Charlotte, N.C. Her husband didn’t make the trip.

Francine was afraid to fly, but that was nothing compared to the fear of seeking credit counseling.

“It took me a year before I could walk in there,” Francine says of the Topeka-based credit counseling agency she worked with. She was 57 at the time, “and it was very hard. I was embarrassed that at my age, I didn’t know better than to get in debt.”

But with a little help, she figured out a way to get out. Her story is both motivational and educational for anyone crushed under credit card debt.

Here’s what she told Money Talks News last week…

Going broke isn’t always obvious

Francine and her husband, Jim, didn’t look like they were in debt. They had no fancy cars or fancy clothes. They’ve never owned a flat-screen TV or the latest smartphones. Neither was laid off or faced a medical problem before Jim’s dementia. And they suffered no addictions to alcohol, drugs, gambling, or even shopping.

“I really can’t point at one thing,” Francine recalls. “We just didn’t realize we were spending $400 a month on groceries. If we wanted something, we just bought it. If it cost $200, we didn’t think about whether it should cost $50.”

So the Bosticks went boringly broke. With none of the typical warning signs – a mansion, Porsche or exotic vacations – their debt grew steadily and quietly. It was so unnoticeable to family, friends, and even themselves (at first) that Francine describes it now as “easy.”

Older isn’t always wiser

Francine, now 62, is careful not to blame anyone else for her financial faults, but she says her parents didn’t help – because they were too thrifty.

“My mother never had a charge card, so I wasn’t raised knowing about credit,” she says. “If she didn’t have cash, she didn’t buy it.”

But Francine grew up in the era of increasingly easy-to-get credit, and that led to 13 cards and no self-control. “It just got easier and easier,” she says.

Her own children – a 42-year-old son and a 36-year-old daughter – have learned from both her mistakes and her advice. Still, “One of them I’m a little concerned about, but the other one doesn’t want to go where his mother has been.”

She prays her three grandchildren and one great-grandchild fare better financially. Her hope? “They start teaching this stuff in high school,” she says. “That’s when they need to learn” what she didn’t.

Credit counseling is easy – and hard

For a long time, Francine knew she was in trouble but did nothing about it.

“I was not sleeping, trying to figure out how I was going to pay my bills,” she says. “One morning, I just said, ‘I can’t do this anymore,’ and called.”

She knew credit counseling could help – and she had learned from her research to be wary of for-profit counseling services but to seek out nonprofits.

She settled on HCCI, a member of the National Foundation for Credit Counseling. NFCC was founded in 1951 and is the nation’s largest and oldest national nonprofit credit counseling association.

“I thought I was going to feel really stupid going in there,” Francine says. “But when I came out of my first meeting, I felt like weight had been lifted.”

It wasn’t easy, though. The hardest part was walking into a meeting with “a big fat folder” of all her bills. “You have to admit there’s a problem,” Francine says.

Then you have to get to work. The counselor urged Francine and Jim to draw up a budget. It took three tries to get it right.

“We had to keep coming back because I wasn’t realizing I needed to give up 100 channels on my cable,” she says, “especially when I was only watching four. I didn’t quite understand the concept.”

Even worse, “I didn’t know how much debt I had – because I didn’t want to know.” She wouldn’t let the counselor tell her, either. Instead, the counselor wrote it on a piece of paper, and Francine looked at it when she got home.

Saving is hard – and easy

And then, somehow, it just clicked. Francine started saving and budgeting – and as mysteriously as her debt accumulated, it began to disappear. Of course, her success was no mystery to her credit counselor.

“The remarkable thing about the Bosticks is their total commitment to repay their debts,” says Bob Mackey, president of HCCI. “For five years, they worked second jobs, lived on a very lean budget, and paid $2,496 each month toward their debt repayment plan.”

That’s right – Francine went from “buying a new purse for $120 when I could’ve got it for $60” to working four hours a night for four nights a week for her local school district – as a janitor. On the weekends, she ran an Avon business. Meanwhile, even though his dementia was slowly taking over, Jim worked 30 hours per week delivering auto parts.

While they were both busy and exhausted from the extra work, they were also too busy to spend more money.

“During those five years, I got used to buying just what we needed,” Francine says. Another one of her novel tactics: “If something costs over $50, we’d go home and think about it for a few days. Lots of times, we never went back for it.”

And then, miraculously, it got easier.

Francine is happier than she’s ever been, and she insists her standard of living hasn’t diminished – much.

“We don’t go out to eat as often as we used to,” she says. But she savors the experience more now.

And, she says, “You have to have a little splurge.” For her, it’s purses. But now, she never spends more than $50.

The happy ending

With her debt wiped out and a modest savings account, Francine knows she needs to rebuild her credit – and ironically, credit cards are the easiest way to do that. She also knows they have other advantages. So she recently got a cash-back card. But she’s a little nervous about sliding back into old habits.

“I’ve been using it like a debit card,” she says. “Every time I buy something, I automatically deduct it from my checkbook.”

So what happens now? She doesn’t know. But she knows this much: “I was afraid because I didn’t want to have to work till I’m 80.” Now she knows she won’t have to.

Michael Koretzky is a writer for Money Talks News, a consumer/personal finance TV news feature that airs in about 80 cities as well as around the Web. This column first appeared in Money Talks News.

An Olive Garden restaurant is shown in Hialeah, Fla. last month. Olive Garden is having a "Dinner Today and Dinner Tomorrow Deal." Customers who buy an entree for $12.95 or more can get another for supper the next day. (Alan Diaz/AP/File)

Hungry? 5 deliciously cheap deals on restaurants and Halloween treats

By Martin Schneider, Contributor / 10.14.12

1. Olive Garden's Dinner Today & Dinner Tomorrow
   Price: $12.95 

   Expires: November 18

   Is It Worth It?: As part of its Dinner Today & Dinner Tomorrow event, order yourself an Olive Garden dinner entrée for $12.95, and receive another free take-out entrée for supper tomorrow. Entrées include Lasagna Rollatini with Meat Sauce, Mezzaluna Ravioli with Five Cheese Marinara, Spaghetti with Four Cheese Meat Sauce, Five Cheese Ziti al Forno, and Fettuccine Alfredo. This deal also includes unlimited soup or salad and breadsticks. Go Olive Garden and find location near you.

2. Outback Steakhouse 1/2 Order of Wings
   Price: Free with any purchase on Thursdays
   Expires: November 8

   Is It Worth It?: Today and every Thursday through November 8, head over to a nearby Outback Steakhouse and "Wing It!" Just mention "Wing it" to your server and you'll enjoy a free 1/2 order of wings with whatever else you order. 

3. Macaroni Grill Coupon
   Price: $10 off $20 via coupon code "RMGTOGO" 

   Expires: November 6

   Is It Worth It?: Via this coupon code, take $10 off online orders of $20 or more at Macaroni Grill. An Editors' Choice deal, you can take big bites into delicious entrees like Carmela’s Chicken, Penne Rustica, Eggplant Parmesan, Fettuccine Alfredo, and know your wallet isn't feeling the pinch. This ties our mention from last week as the best dollar-off coupon we've seen for this restaurant, but unfortunately Northern California, Washington, Montana, Hawaii, and McAllen, TX are excluded from the eatin's. Everyone else: dig in!

4. Lindt Chocolate 6-oz. Bag of Lindor Truffles
   Price: Free via printable coupon
   Expires: November 7

   Is It Worth It?: Lindt & Sprüngli makes the finest Swiss chocoloate known to man — their Lindor Truffles are simply divine. We know you already like them, but show your affection for the sweets via Lindt's Facebook page and you'll receive a printable coupon good for a decadent 6-oz. bag of Lindor Truffles. Oh how sweet it is to be free!

5. Just in Time for Halloween Candy Sale
   Price: From $6.25 

   Is It Worth It?: It's almost time to stock up on Halloween treats! You already know it's never cool to be the house that gives out apples, so why not pick up a bag of Hershey's 100-Piece Snack Size Candy Assortmentfor $12.77. Or even better, the Hershey's 130-Piece Halloween Snack Size Candy Assortment for $15.11? With these quantities, there's likely to be some leftovers for the adults, too!

Martin Schneider is a contributor to dealnews.com, a website devoted to finding the best deals on consumer goods. The site pledges to list the best deal, whether or not it's from an advertiser, although it does work with advertisers to craft deals for readers. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. This feature first appeared in dealnews.com. 

A money changer shows some one-hundred US dollar bills at an exchange booth in Tokyo in this 2010 file photo. Johnson argues that a large part of saving money involves figuring out what you can get for free. (Issei Kato/Reuters/File)

21 things you can get for free

By Stacy Johnson, Contributor / 10.14.12

Here are only two ways to become richer – make more or spend less.

There are a few ways to make more, from getting a raise to finding weird ways to make extra money. And there are tons of ways to spend less. One of the best? Stop paying for things you could get free.

1. Free cars

Many people want their cars moved from place to place, but don’t want to do the driving. Sometimes these cars are delivered by truck, but often they’re driven – by people like you. If you have a clean driving record, a car delivery company like AutoDriveaway might hook you up.

I did car delivery a few times when I was in college – it’s a great way to get where you’re going. It’s best if you’re flexible about when you leave, return, and perhaps even where you go. You still have to pay for gas, and the trip home can be problematic. I used to hitchhike, but smarter choices today would be bus, plane, or waiting at the other end for another drive-away car.

For more, see How to Drive Across the Country Free.

2. Free lodging

Why stay in a hotel when the nonprofit Couchsurfing.org offers tourists a chance to stay at homes for free? Make friends with sponsoring families throughout the United States and countries ranging from Croatia to France. You have to set up a profile on the CouchSurfing website, which provides tips on how to find families willing to open their homes to you. Obviously, the digs won’t be fancy, but they’ll be free.

Another way to get free lodging is to home-swap. Check out Best Price for a Hotel Room? $0.

3. Free audio books

Now you can find out for free the fate of Pip in Charles Dickens’ “Great Expectations” or Elizabeth in “Pride and Prejudice” as you drive or jog. Download free audio books from the nonprofit LibriVox.org, which has volunteers recording classics in the public domain – including many Shakespeare plays. You can also volunteer to help by reading. LibriVox will even provide you with free recording software.

4. Free food

There’s at least one day every year when you shouldn’t think of paying for a meal. Frugal Living has a list of hundreds of businesses that offer birthday freebies, most of which are food. For a free libation at your favorite pub, do what I do: Loudly proclaim it’s your birthday and demand that everyone within earshot pick up the next round.

5. Free food for kids

Don’t go to another restaurant that doesn’t feed your kids for free. MyKidsEatFree.com offers a roadmap of where you can save on kids’ meals – just type in a state and city. You’ll pay but your kids won’t at more than 5,000 restaurants across the country.

6. Free samples

Before you go to the drugstore and shell out silly sums for travel sizes of your favorite toiletries, go to Volition.com or one of many other websites that offer free samples. In addition to soap, shampoo, etc., you might find all manner of interesting things. For example, we’ve spotted circus tickets, a free diet analysis, and free advance movie screenings. Other free mega-sites include TheFreeSite.com and freechannel.net.

7. Free TV

Despite that more than 100 million Americans shell out an average of $75 every month for satellite or cable TV, local channels are still free. And thanks to digital signals, reception is better than ever. Need more programming without the big cable bill? No problem. Check out You Don’t Have to Pay for Cable TV.

8. Free software

You can get free software for word processing, spreadsheets, presentations, graphics, databases and other uses by going to OpenOffice.org. And that’s the tip of the iceberg. No matter what kind of software you want, you can probably find it free. Check out 5 Best Free Software Programs.

9. Free anti-virus

This one could go under “free software,” but it’s important enough to warrant its own spot on the list. Check out Antivirus Software is a Waste of Money for more.

10. Free speech

Make your voice heard around the world with your own blog. Many companies will help you set up your own site at no charge, such as WordPress or Blogger. They’ll even give you free, easy instructions and a choice of blog templates.

11. Free foreign language lessons

The BBC is on the other side of the pond, but it offers a free 12-week class to learn French, Spanish, Italian, or German, gratis. You’ll even get a certificate at the completion of the course. BBC also offers other audio and video courses in the four languages – as well as help in learning more exotic languages such as Chinese, Russian, and Greek.

12. Free checking

According to The Wall Street Journal, the average minimum checking account balance required to avoid a monthly fee at U.S. banks is $723 – and the average monthly fee is $5.48.

But banks aren’t the only game in town. While not all offer free checking, the prospect of lower fees is one of reasons You Should Join a Credit Union.

Another option is online-only banks. Without the overhead of brick-and-mortar branches, the terms are often much better. 

Too much hassle to leave your bank? Threaten to and see if you can have fees reduced or eliminated.

13. Free credit reports and scores

Don’t ever pay for a copy of your credit report. Instead, go to AnnualCreditReport.com for a free look at your credit history once a year.

When it comes to free credit scores, you can turn to sites like Credit Karma or Credit Sesame, although they won’t give you the most widely used score, the FICO score. For that, you could try enrolling in a FICO product that comes with a free score, then cancelling within the cancellation period. 

14. Free cash

Tired of paying a $2.50 “convenience fee” for using an ATM that’s not in your bank’s network? Use an app like ATM Hunter to find a branch ATM. If you can’t find an ATM near you for a free cash withdrawal, no worries: Plenty of stores will give you cash back with no fee when you make a purchase.

15. Free information

Use the search feature on your smartphone, or text a business name to G-O-O-G-L-E, and you’ll get the number texted back. You can also dial free 411 (1-800-Free411). The results are sponsored by companies (you’ll have to listen to a 10-second ad), but it’s free.

16. Free scholarship search

Plenty of websites offer free searches for scholarships, such as Fastweb. There’s even a company called Free Scholarship Searches that offers links to 40 websites that offer free scholarship searches.

17. Free baggage

My wife and I went to Europe for 10 days with just one carry-on each. If we can do it, so can you. But if you insist on checking a bag, try to fly with the only two airlines that allow one free checked bag: Southwest and JetBlue. And avoid the two that slap consumers in the face by charging for carry-ons: Spirit and Allegiant.

Need to check and need to fly an airline that charges? Delta, United, and American all offer credit cards that include checked-bag fee waivers for cardholders and, in some cases, their companions.

18. Free entertainment

As we point out in 19 Tips to Save on Entertainment, your local library, parks, and universities offer lots of free fun, from books to plays to concerts. Join email lists to see what’s up. And of course, there’s the Internet, offering free games as well as articles. Just go to the website of your favorite news source.

Volunteering doesn’t cost a dime and can pay off for both you and your community. Local animal shelters, home-building groups, shelters, and food banks are always looking for volunteers. And check out volunteer opportunities at local festivals and events. By volunteering, you get to go to the event free.

19. Free water

While technically not free, tap water is about as close as you can get. If you’re concerned about water quality, buy a filter. But don’t ever pay for water at a convenience store.

20. Free telephone calls

Always calling a loved one long-distance? If you both get something like Skype, you can talk all you want without paying a dime. And with a service like Google Voice, you can get all of your cell phone calls free too.

21. Free everything else

You have something you don’t want, but it’s too valuable to throw away. You might donate it to charity, but you also might give it away at sites like Craigslist or Freecycle, a nonprofit set up to help you find free stuff and keep it out of landfills. From used furniture to sport equipment, you’ll be amazed at what people give away.

Bottom line? While the best things in life are always free, so is lots of other stuff. If you want to find some extra money in your budget, stop paying for things you could have for nothing.

Stacy Johnson is the founder and CEO of Money Talks News, a consumer/personal finance TV news feature that airs in about 80 cities as well as around the Web. This column first appeared in Money Talks News.

A check from the US Treasury is shown in this 2005 file photo. A common misconception is that it's easy to live off Social Security alone, but that's rarely the case. (Department of Treasury/AP/File)

Social Security: 7 common myths busted

By Renee Morad, Contributor / 10.13.12

Will Social Security be around when I retire?

That’s a question lots of Americans are probably asking themselves, though it’s certainly not the only thing we might be wondering when it comes to Social Security. Given our national retirement program’s handbook of 2,728 rules and countless interpretations, few participants are likely to thoroughly understand it.

To help shed light on Social Security, we recently set out to separate fact from fiction. Below are some of the most common Social Security myths, along with explanations:

Myth: Social Security funds are running dry, so I should collect as soon as possible

The most recent government-issued report projects that Social Security will run out of funding by 2033. This is earlier than previously expected, but doesn’t necessarily mean Social Security will be gone in 20 years. It means system revenues won’t be capable of paying 100 percent of promised benefits under the law. The Social Security Administration estimates that benefits could be reduced by 22 percent at that point and may continue to decline if Congress doesn’t intervene.

Meanwhile, an increasing number of Americans are taking Social Security at the minimum age of 62, according to SmartMoney. But experts insist that it pays to wait. For each year you hold off on collecting Social Security after reaching full retirement age – which is typically age 66 for baby boomers – you’ll get an 8 percent increase in benefits. So waiting till 70 means about a third more income.

Myth: I’ll be able to live comfortably on Social Security alone

If you’re counting solely on Social Security to support you after retirement, you might find yourself in a difficult financial situation: The average Social Security payment to a retired worker is around $1,234 per month – slightly more than the Federal minimum for a month’s wages.

So unless you’re prepared to supplement Social Security with savings or a pension, be prepared for a challenge. Consider cost-cutting measures, like minimizing housing expenses, as well as earning extra income. You can work and claim Social Security benefits at the same time.

Myth: The more money I make now, the more I’ll get back later

Social Security’s progressive benefits formula favors low-income workers; they tend to get back a greater percentage of what they put in compared to higher-income workers. But for many retirees today, the amount they’ve paid in over the years will likely exceed what they’ll take out, according to an analysis by The Associated Press.

This has also changed drastically with the times. According to The Associated Press, those who retired in 1960 could expect to receive seven times more in benefits than they paid in taxes. Last year, data showed a retired married couple who paid $598,000 in Social Security taxes throughout their careers could expect to collect only $556,000 in benefits – and that’s if the man lives to 82 and the woman to 85, according to an Urban Institute study.

Myth: Social Security is only for the retired

The program provides benefits for disabled workers of all ages – though qualifying for benefits can be challenging. It also provides survivor benefits to dependents of workers who pass away.

Myth: Qualifying for disability will be easy

With more than 8 million Americans receiving Social Security Disability Insurance, you’d think anyone unable to work due to a long-term physical or mental disability would be covered. But that’s not necessarily the case. Applications are up nearly 50 percent over a decade ago, and some applicants have to wait two years or longer for a resolution. For tips on qualifying for disability benefits, take a look at SSA.gov.

Myth: If I’m divorced, I can’t collect benefits from my ex-spouse

You can collect retirement benefits on your ex-spouse’s record if you were married for at least 10 years. However, you can’t collect benefits if you remarry – unless your second marriage also ends.

Myth: If I’m collecting Social Security, I’m an obvious target for identity theft and scams

You should always keep a eye out for scammers. Recently, CNNMoney reported that identity thieves are targeting seniors by fraudulently rerouting Social Security benefits to their own accounts. But that doesn’t mean only those at retirement age are at risk – anyone with a Social Security number is.

Surprisingly, children are even more at risk for getting their Social Security number stolen, according to a Carnegie Mellon University CyLab study. An astounding 10 percent of children surveyed had someone else using their Social Security number. For ways to avoid identity theft targeting children, check out our story Your Child Might Be an Identity Theft Victim.

Myth: I’ll be eligible for Medicare as soon as I can collect Social Security

Americans can’t earn Medicare benefits until age 65, but can collect Social Security as early as 62. Exception: If you collect Social Security Disability, you’ll get Medicare coverage automatically after two years.

Renee Morad is a writer for Money Talks News, a consumer/personal finance TV news feature that airs in about 80 cities and around the Web. This column first appeared in Money Talks News.

In this 2007 file photo, a traveler uses a Delta SkyMiles credit card to buy an airline e-ticket at the Bob Hope Airport in Burbank, Calif. For many families, no-fee rewards credit cards are a good option. But a select few cards with annual fees, like the American Express Blue Cash Preferred Card, tend to pay for themselves in cash back rewards with frequent use. (Damian Dovarganes/AP/FIle)

Best rewards credit cards sometimes come with a fee

By Michael Germanovsky, Contributor / 10.10.12

With prices on the rise, especially on everyday essentials like groceries and gas, one way to save a little cash is to use a credit cards that offer rewards points on daily purchases. Some of the most generous rewards cards carry annual fees. So is it better to pay the fee and pile up the rewards or go with one of the many free rewards cards?

For most families, a no-fee rewards card (such as the Capital One Cash Rewards, Chase Freedom Visa, or Citi Dividend Platinum Select Visa card) is the best option. With no annual fee, you can be sure that all your rewards will actually be rewards, rather than going to pay back an annual fee.

There are exceptions to this rule, however, especially if you spend thousands of dollars a year on your credit card. A good example is the American Express Blue Cash Preferred Card, which has an annual fee of $75, but gives 3 percent cash back on gas, and a whopping 6 percent cash back on groceries.

To make back that $75 annual fee, all you need to do is spend $1,000 on groceries and $600 on gas in a year – an amount that most families spend in three months. At that pace ($4,000 on groceries and $2,400 on gas a year), you'd make $237 in cash-back rewards annually, even after paying the fee.

Compare that with the popular Chase Freedom Visa rewards card, which carries no annual and offers 5 percent cash-back on gasoline and groceries, but only for select three-month periods. In 2012, the Chase Freedom cardholder at the same rate of spending would have earned back only $152 – $75 less than the American Express card. And with American Express, there's no hassle of having to remember to sign up for the 5 percent bonuses every quarter.

The more you spend, the more the American Express advantage grows. Spend only half as much, however, and the Chase Freedom card is the better deal.

Another instance when paying an annual fee can be well worth it is travel credit cards – cards that pay out points redeemable for high-value rewards like airline tickets and hotel stays.

The average family may not be in the market for this kind of card – they tend to be better for business travelers and other globe-trotting types. But if you do fly frequently, or log many nights in hotels (the two often go hand-in-hand), these cards have unbeatable value, even with an annual fee.

 – Michael Germanovsky is a credit card expert and the editor-in-chief of Credit-Land.com, a credit-card comparison website.

Tourists walk past a Bank of America banking center in Times Square in New York in this June 2012 file photo. Bank of America and other major lenders have agreed to $25 billion civil settlement over 2010's 'robo-signing' scandal. (Brendan McDermid/Reuters/File)

Major banks settle with homeowners. Are you entitled?

By Brandon Ballenger, Contributor / 10.07.12

If your home loan is serviced by Ally/GMAC, Bank of America, Citi, JPMorgan Chase, or Wells Fargo – if that’s who you make payments to – keep reading. Likewise if you had a home loan with any of those companies between 2008 and 2011 and your home was foreclosed.

If you have another lender (or the home was in Oklahoma), you might as well stop here and skip to the last paragraph of the article. Sorry, most of this won’t help you – but there is plenty of other refinancing help out there to read up on.

Still here? Then you need to know about the second largest civil settlement state attorneys general have ever obtained. (The largest was, by far, the 1998 tobacco master settlement worth about $206 billion.) In February, the five biggest mortgage companies (named above, and holding around 60 percent of American mortgages) agreed to a $25 billion settlement with the federal government and 49 states – excluding, you guessed it, Oklahoma.

You may soon get part of that settlement, since banks are now starting to cough up cash. The settlement gave them three years, but it includes incentives for acting within the first year and penalties for moving too slowly.

Why this settlement is happening

The settlement is mainly over the “robo-signing” scandal from two years ago –  Lenders “routinely signed foreclosure-related documents outside the presence of a notary public and without really knowing whether the facts they contained were correct.”

This is illegal, and caused major problems – including some people wrongfully losing their homes, and real estate markets freezing up as courts struggled to process the volume of foreclosures. As we’ve argued, this also slowed down the housing recovery, which affects everybody’s home value.

What’s in the settlement

The settlement is enormous, and has a lot of money going in lots of directions. According to the Office of Mortgage Oversight, created to administer the settlement, here’s where…

• At least $17 billion in principal reduction and loan modification for homeowners who are in trouble and need help to avoid foreclosure.
• Up to $3 billion in refinancing for “underwater” homeowners who are current on their mortgages but owe more than their homes’ current market value.
• $1.5 billion in payments to homeowners who lost their homes to foreclosure between Jan. 1, 2008, and Dec. 31, 2011. These recipients will have to complete a simple form, and they will not have to drop any legal claims they may have.
• Payments to the 49 signing states to support the prevention of foreclosure as well as consumer protection and education programs, as well as civil penalties.

We covered part of those first two bullets a couple of weeks ago, in "Surprise! Bank Slashes Some Mortgage Rates." JPMorgan Chase (whose part in the settlement includes $4.21 billion in relief to borrowers and $1.08 billion to the government) has already begun lowering payments, loan balances, or sometimes both for some underwater homeowners who managed to hold on until now.

If that’s your servicer, keep an eye on the mailbox and don’t throw out any correspondence you get. If you haven’t seen anything, call and ask. The call center number for settlement questions is 1-866-372-6901 and their info page is here.

Details about another part of the settlement: money for people who couldn’t keep their homes. This applies to people meeting the following criteria…

• Your loan went to foreclosure sale between Jan. 1, 2008, and Dec. 31, 2011.
• The loan was serviced by one of the five mortgage servicers participating in the settlement.
• You made at least three payments on the loan.
• You lived in or intended to live in the property at the time of origination of the loan.
• Your property was a one-to-four-unit residential property.
• The unpaid principal balance of the first mortgage loan did not exceed $729,750 for a one-unit property; $934,200 for a two-unit property; $1,129,250 for a three-unit property; or $1,403,400 for a four-unit property.

According to the attorneys general, these ex-homeowners should start receiving letters about the settlement early this month, including instructions for how to file a claim, which should be at least $840. (“This estimated payment amount is based on 100% of all eligible borrowers submitting claim forms,” the settlement website’s FAQ says, “and therefore the payment you receive will very likely be higher.”)

What else you can do now

Besides waiting for the mail, here are three other things you should do:

1. Watch for scams.

There’s a lot of money involved here, which makes it a prime target for criminals. If you get a call about the settlement, you shouldn’t need to share bank account info or your Social Security number:- the bank should already have your personal information. If you’re skeptical, ask for contact information and say you’ll call them back – then look up the mortgage number for your bank to check. (The current numbers for all five banks are on the settlement website.) There’s no fee involved, so be wary if one’s mentioned.

2. Stay informed.

Details and timing for much of the settlement still haven’t been worked out – the banks have more than two years to pay up. It’s not a bad idea to periodically check www.nationalmortgagesettlement.com or the website of your state’s attorney general for the latest information. The settlement does not prevent the government, states, or consumers from pursuing or joining other lawsuits, so even Oklahoma might get some money before this is over.

3. Look at other options.

Many may not be eligible for this settlement, and some people can’t afford to wait. Recognize there’s other mortgage help available, including for people with loans held by Fannie Mae or Freddie Mac. Here are some links to remember…

• www.knowyouroptions.com (Fannie Mae)
• www.freddiemac.com/avoidforeclosure (Freddie Mac)
• www.makinghomeaffordable.gov (Everyone)
• www.independentforeclosurereview.com (Everyone)

Brandon Ballenger is a writer for Money Talks News, a consumer/personal finance TV news feature that airs in about 80 cities and around the Web. This column first appeared in Money Talks News.Brandon Ballenger is a writer for Money Talks News, a consumer/personal finance TV news feature that airs in about 80 cities and around the Web. This column first appeared in Money Talks News.

Tourist leap into the air for a souvenir picture as the sun sets over Waikiki Beach in Honolulu in this January 2012 file photo. (Jason Reed/Reuters/File)

Hawaiian vacations on the cheap

By Summar Ghias, Contributor / 10.07.12

Home to storybook waterfalls, sputtering active volcanoes, vibrant vegetation, and some of the most coveted surf spots in the world, Hawaii has 'ideal destination' written on every islands' sands – or at least it does in our minds. With our latest deals to this most northern set of Polynesian islands, the worn-out budget vacay-hunter in you can find peace. After checking out our Hawaii vacation deals, you may find yourself saying aloha to warmer temperatures sooner than you expected.

Hawaii consists of six distinct islands that entice surfing enthusiasts, adventure seekers, and beach junkies alike. Get a glimpse of what the Big Island, Maui, and Oahu have to offer aboard the newly renovated Celebrity Millennium on an 11-night cruise for two (from $1,588, a low by $510; expires October 22). This sea adventure comes bundled with a $75 onboard credit and includes visits to picturesque Hilo, the active Kilauea volcano, the historic town of Kailua Kona, the Maui hotspot of Lahaina, and the state's capital, Honolulu. At well under $1,800, this rate is a steal compared to average cruises to the area; it's the lowest total price we've seen for any Hawaiian cruise in the past two years, to boot.

For those without their sea legs, why not visit Oahu, Hawaii's most visited island with more than 4.5 million incoming tourists a year. The "The Heart of Hawaii" and enjoy the island's historic attractions including Hawaii's last reining monarch, a replica of a Buddhist temple at Valley of the Temples, and the infamous Pearl Harbor. To see it all and more, stay at the family-friendly Aston Waikiki Banyan in Honolulu. The hotel offers nightly stays for just $137 (a low by $9; expires October 31) and is located one block away from the beach at Kapiolani Park, the Waikiki Aquarium, and the Honolulu Zoo.

There are plenty of equivalent lodging alternatives in the area. Enjoy the former stomping grounds of Hawaiian royalty via a room at the Prince Hotel Waikiki (from $189, a low by $20; expires October 31). Located on the south shore of Honolulu along the main drag of hotels and resorts, guests here will enjoy panoramic oceanfront views, island cuisine, and a 27-hole golf course. Or, unpack at the nearby 4-star oceanfront Ilikai Hotel and Suites, which offers 3-night stays which includes in-room WiFi for prices that start at $447 (a low by $20; October 7).

Once you've settled in, enlist in the help of the experts at Hawaiian Surf Adventures for your water sport of the day: a 2-hour group standup-paddle boarding lesson and tour of Maunalua Bay($49, a low by $50; expires October 7). Nestled between Diamond Head and Koko Head on the southeast shore of Oahu, the bay is relatively secluded, so instructors can give you the time and space to learn just how to stay erect while paddling.

After you've had your fill of Oahu, why not island-hop over to Kauai via plane, where you'll find towering cliffs, the Waimea Canyon, and 50 miles of amazing beaches. You'll find your very own beach-lover's haven at one of the Aston Hotels and Resorts, which offers stays at select properties that start at $79 a night (a low by $9; expires October 31). Hotels include the reasonableAston Aloha Beach Hotel — which sits on 10 beachfront acres adjacent to Kauai's only protected swimming and snorkeling beach — and the pricier, more secluded Aston Waimea Plantation Cottages, which serves as a romantic hideaway amidst a serene coconut grove.

Hawaii's warm spirit and tropical beauty offers all of us land-bound folks of the 49 states the perfect jolt of rejuvenation. So, pack those bags and get ready to get lei'd! But, if you've got different ideas for a vacation, though, be sure to check out our daily travel deals for other airfare, hotel, and vacation packages.

Summer Ghias is a contributor to dealnews.com, a website devoted to finding the best deals on consumer goods. The site pledges to list the best deal, whether or not it's from an advertiser, although it does work with advertisers to craft deals for readers. This feature first appeared in dealnews.com.