MoneyLife – Help, Hope & Insight

Ways to cut TV, phone costs

Weren't we supposed to be paperless by now? Not only are we still buying paper (maybe more now than ever), we have all these digital costs piling up. How to Cut the Beastly Cost of Digital Services gives some good advice on how to make small but meaningful changes:

• DON'T ASK, DON'T TELL: Cable, satellite and telephone companies can only be overjoyed that millions of their customers take no action to lower their bills, and instead routinely pay much too much for overpriced plans they purchased a decade ago.
• IF THEY SAY NO, THREATEN TO SWITCH: If you're thinking about switching to another satellite, cable or phone provider, call your current one and let 'em know.
• BUNDLE YOUR SERVICES: With traditional landline ownership dwindling as more customers use only cellphones, the major phone and cable companies are chockablock with packages intended to keep you from straying.
• RECONSIDER THIRD-PARTY CARRIERS: Once, third-party long-distance companies offered cheaper long-distance calling than you could get from your local provider, but that might no longer be the case.
• ASK FOR CORPORATE DISCOUNTS, MONITOR WEB SITES FOR DEALS, AND IF ALL ELSE FAILS, DOWNGRADE

Have you tried any of these? Or maybe you know of some better ways that aren't listed?

***

This post is used with permission of Sound Mind Investing, America's best-selling Christian financial newsletter. SMI, published by investment advisor Austin Pryor, has been Crown's primary investing resource for nearly 20 years. More than 14,000 families rely monthly on SMI's step-by-step investment advice. Visit Sound Mind Investing to learn more.

And a little child shall lead them

The winner of the 2009 Financial Literacy Poster Contest, sponsored by the National Foundation for Credit Counseling, is fourth-grader Jenna Fink of Sparks Elementary School in Frisco, Texas (near Dallas).

See her winning entry here (PDF).

"At such a young age, Jenna did an incredible job illustrating the importance of saving money, living within your means and sticking to a budget," said Todd Mark, vice president of education for the Consumer Credit Counseling Service of Dallas.

***

This post is used with permission of Sound Mind Investing, America's best-selling Christian financial newsletter. SMI, published by investment advisor Austin Pryor, has been Crown's primary investing resource for nearly 20 years. More than 14,000 families rely monthly on SMI's step-by-step investment advice. Visit Sound Mind Investing to learn more.

Refinancing to a fixed-rate mortgage

A huge number of homeowners have been refinancing this year to take advantage of the current historically low interest rates.

Some experts think these low rates will be with us for some time, but if you have an adjustable-rate
mortgage and no plans to move over the next year or two, it's probably better to act now than to wait.

The ability to lock in 15- and 30-year rates around 5% is a no-brainer, especially given the alternative of a variable rate that's highly vulnerable to future inflationary (upward) pressure. Nobody knows when inflationary winds will start blowing in earnest, but some think we may be seeing the first traces already breezing through the bond market.

Normally we'd encourage a 15-year loan for anyone who can swing the higher payment, but given the economic uncertainty and the fact that 15- and 30-year rates are pretty close in many markets, it may be worthwhile to consider sticking with a 30-year loan and simply doubling up your principal payments, rather than being locked into the higher 15-year payment.

In an extremely uncertain economic and job climate, payment flexibility may be more valuable than shaving an extra eighth or quarter off the interest rate. It's easy to turn a 30-year loan into a 15-year with extra principal prepayments; it's difficult to do anything to ease the pressure of a 15-year loan payment if you're unfortunate enough to lose your job at some point.

"Run the numbers" and decide which is the better approach in your situation.

*** This post is used with permission of Sound Mind Investing, America's best-selling Christian financial newsletter. SMI, published by investment advisor Austin Pryor, has been Crown's primary investing resource for nearly 20 years. More than 14,000 families rely monthly on SMI's step-by-step investment advice. Visit Sound Mind Investing to learn more.