If you’ve previously tried (and failed) to follow a budget, the problem may have been that you were using a formula designed for someone else, with different life circumstances. The best basis for a successful budget is your own past spending patterns. From there, you can create realistic guidelines for yourself that will help you meet your goals. Click on the infographic to learn more about personalized budgeting and see how it is done.

Photo: {Guerrilla Futures | Jason Tester}

Right now, I’m sitting at my favorite cafe, drinking green tea and having my face illuminated in an unflattering way by my laptop screen.

Yes. I’m one of those people you see in a coffeehouse at 11am.

Who are these people? Don’t they have to go to work?

I am at work. I’m a freelancer. Or, to use the term Denise Kiernan and Joe D’Agnese use in The Money Book for Freelancers, Part-Timers, and the Self-Employed, I’m an independent worker. We account for 30% of the American workforce. We’re contractors, artists, plumbers, day laborers. “We get hairstylists writing us,” says Kiernan. “We have some bellydancers that follow us on Twitter.”

Independent workers are so diverse, nothing really unites us except for the fact that we have to manage our own money. Oh, sure, if you’re a salaried employee, maybe you think you have to manage your own money. But think about all the things your boss does for you:

* Chooses and helps pay for your health insurance (and probably other kinds of insurance, too),

* Withholds and pays part of your income, Social Security, and Medicare taxes,

* Pays you a fixed salary on a regular schedule, regardless of the company’s cash flow situation,

* Offers a 401(k) or other retirement account and deducts a percentage from your paycheck automatically, maybe even with an employer match.

Now I’m jealous. (And when I mentioned to Kiernan that I’m covered by my wife’s employer health insurance, she said, “We hate people like you.”)

The Holy Trinity

I’ve already written about how to take an irregular income and smooth it out into something more or less predictable. But having to manage your own taxes and retirement saving is a different kind of problem, and D’Agnese and Kiernan address it using what they call the Holy Trinity of accounts. No sermon required.

First in the trinity is the Emergency Account. “Everybody in the country should have an emergency fund,” says Kiernan, “but it can take on a much bigger role in the life of an independent worker, just because independent workers tend to find themselves in more emergencies.” And not just freelance trapeze artists: even successful independent workers experience cash flow dry spells that employed people would refer to as “unemployment.”

Second is the Tax Account. “It’s really mind-boggling the number of people who do not save money for their taxes,” says Kiernan. “And it will kill you.” Every time a check comes in, you need to set a percentage aside to pay quarterly taxes. Waiting until the end of the year means a big tax bill plus a penalty. “I know a friend of mine who actually stopped freelancing because she had a $7000 tax bill one year,” says Kiernan. Don’t be that person.

To figure out what percentage to set aside for taxes, check your tax return from last year. If you use TurboTax or other tax preparation software, it should indicate your Effective Tax Rate (or ask your accountant). That’s the percentage you need to save. If you’re making more this year than last year, good for you, and you’ll need to up your percentage a little.

Final tip: you can pay quarterly taxes directly online by linking your tax account to EFTPS, the government’s electronic payment system. No more licking envelopes.

For either of those, park your money a high-yield savings account, so at least it accumulates interest while waiting to be funneled to Uncle Sam or whatever emergency arises.

Finally, you need a Retirement Account. Haven’t even thought about that yet? Better late than never — and best, start as early as possible. ”If you have to start late, fine, start late,” says Kiernan. “But if you can start early, it’s incredible the savings difference you can have. Compound interest is quite phenomenal.” Furthermore, if you earn a full-time income from self-employment, a regular old IRA or Roth IRA isn’t enough (be sure to take Mint’s simple “quiz” to find out which IRA is best for you, though).

In order to set aside sufficient savings, you’ll also need a SEP IRA or Solo 401(k), which are not as complicated as they sound. Talk to any major discount brokerage for help setting one up.

Automate at your own risk

Like many personal finance writers, I’ve often recommended setting up an automatic monthly transfer or paycheck withdrawal to your savings account, so the money is whisked out of your greedy hands before you can do anything regrettable with it.

For independent workers, however, this is a recipe for disaster, because payday is whenever the mailman brings good news. “Use percentages in almost everything you do,” says D’Agnese.

“You don’t want to save too much when you have a small check come in or too little when you have a big check come in,” adds Kiernan. “Percentages are really the only approach that makes sense.”

Yes, that means every time a check comes in, even if it’s for $50, you have to manually transfer some to the tax account, some to the emergency fund (unless it’s fully funded), and some to retirement. Isn’t this too much trouble? Wouldn’t it be easier to just have one savings account?

“There’s nothing simpler and something almost beautifully stupid about opening your bank account and seeing that you have maybe six or seven different accounts, all of them with a name for the thing that you’re saving for,” says D’Agnese. (One bank that allows you to create sub-accounts, which can even be integrated with separate Mint Goals, is ING Direct.) In other words, if multiple accounts sounds like a drag, the alternative is even worse. There’s no getting around the fact that independent workers don’t have a money babysitter.

Why are you doing this, anyway?

Finally, isn’t all this fiddly money stuff antithetical to the whole idea of striking out on your own, pursuing your dream, firing your boss, sticking it to the man?

Not at all, says D’Agnese. “We don’t get into this for the money,” he says. “But we get out of this for the money.” Talented freelancers crash and burn all the time because they fail to fund the Holy Trinity. “If you could have stuck it out a little while longer and had mastered the skill of managing your money,” D’Agnese adds, “you’d have been able to stay in the field that you really want instead of trying to write a resume.”

Matthew Amster-Burton is a personal finance columnist at Mint.com. Find him on Twitter @Mint_Mamster.

photo: gabi_menashe

Market researchers Global Industry estimate that the baby durables market will reach $6.19 billion by 2015. No wonder. Baby registry provider Babies R’Us “must-haves” list includes 191 items!

Pediatric specialists regularly opine on what a new baby needs. However, the real experts are often parents who learned through experience. This list, compiled using input from real moms, is the ultimate insiders guide to determining what to buy, borrow, and skip altogether, when budgeting and buying for your new baby.

Buy

Nipples and Bottles (BUT) don’t go overboard: All nipples are not created equal and it may take several rounds of trial and error to discover what works for your baby. Resist the nesting urge to wash all bottles and nipples. Save the receipts and open them one at a time. Find what works, and return the rest. (Pricier brands like Avent cost about $7 for a bottle and $5 for a pack of nipples).

Crib Mattress: Safety and sleep are paramount to your new baby’s health; a quality crib mattress is essential. Consumer Reports advises parents to buy the firmest and heaviest mattress they can find. Skip unnecessary features like warranties and antimicrobial covers.

Convenience-Feature Sheets: Characterized by zippers versus the standard elasticized corners, convenience sheets will cost you at least two times more than what you’d pay for a basic sheet. Nevertheless, moms polled for this story swore by them for their ease of use and durability. “Clouds and Stars” zippered sheets (available online or in boutique baby stores) and “The Ultimate Crib Sheet” both came highly recommended.

Infant Car Seat/Bases: Conduct your own research to find what seats are most recognized for safety (the highest price is not always the best). While convertible seats can go the distance with their ability to fit both infants and toddlers, keep in mind that they do not fit newborns as snug as an infant-only seat. If mom and dad will share childcare drop-off and pick-up duty, buy car seat bases for each vehicle.

Jogging Stroller: Jogging strollers are pricey (you’ll pay anywhere from $100 to more than $500), but they’re essential in getting out and about, and will last for several years. (Many models support limits up to 70 pounds). Some models made by B.O.B include adapters to accommodate common infant car seat manufacturers for use starting when baby is a newborn.

Digital Ear Thermometer: Realizing your infant is sick is stressful. The clarity a digital ear thermometer can provide in your moment of “now what?” is priceless.

Baby Monitor: Like the thermometer, the piece of mind is worth every penny.

Stacy Conder, mom of two, offers this rule of thumb: “Buy anything that helps the baby sleep, or makes moms life easier.” (This includes soothing devices, and blankets that make swaddling at 3am less daunting!)

Borrow

Breast Pump. (Initially) Until you give birth, it’s impossible to know what feeding method will work for you and your baby. For that reason, borrow a breast pump until you know you’ll be breastfeeding for the long haul. (You buy the pumps and attachments new so there are no sanitation concerns).  Many hospital maternity wards also rent breast pumps for prices equivalent to $1 to $3 a day.

*Note to multiples moms: Tara Schulte, mother of three (two of which are twins) advises anyone expecting multiples to get a hands-free feeding device like the Bebe Bottle Sling (whether your buy or borrow is your call!)

Boppy. It can be used to help support infants before they are able to sit independently, or as a breast-feeding pillow. They are also designed to be used with washable zippered covers; save $25 and borrow the Boppy.

Bumbo: Another device designed to help baby sit, this chair also has an attachable tray to double as a space-saving high chair. (Retail price for both is about $40). However, it’s designed for babies who have head control, but cannot sit without support, which equates to a small window of time. It is easily wiped down and sanitized.

Pack & Play: Unless you travel frequently, you will likely only use this on occasion.

Exersaucer/Jumperoo/Swings/Bouncy Chairs: While moms also swear that baby exercisers are vital to keeping your little one entertained (and your mind sane), they take a lot of valuable space. You’ll use it frequently, but the window of time before your baby moves onto the next form of exerciser is quite narrow. Brand-new, they cost anywhere from $50 to $180, depending on the model. Save your money (and the assembly-induced headache) and borrow one from a friend. If that fails, baby resellers usually have mountains of these for a fraction of the retail price.

Skip

Bottle Warmer. Warmers cost anywhere from $20 to $60. Breastfeeding moms are the warmer! Formula-feeding parents can easily warm a filled bottle by placing it into hot water for a couple of minutes. (Shake afterwards to eliminate hot spots).

Diaper Genie: Moms disagreed on this one (as Richelle Krzak, mother of two toddlers put it, her house “would smell like a farm without one.”) But, most agreed that this high-tech trashcan (which costs about $40 and requires special refill sacks) is unnecessary. Standard plastic grocery sacks or odor-reducing trash bags used in conjunction with a flip-top style trashcan will do the job.

Wipes Warmer: They waste electricity, and cost up to $20. A room temperature wipe will clean your baby just fine.

Grocery Cart Cover: Swab the handle with an antibacterial wipe, and use an old-fashioned blanket.

Glider Rocker: In the beginning, your infant may respond just as favorably to being bounced in a seat, or snuggled and walked around in your arms. Gliders of the wooden variety can also be difficult for new moms to find a comfortable position to breastfeed. Until you know what your baby’s soothing style is, pass on this purchase, which can cost upwards of $300.

One aspect of homeownership that new and soon-to-be homeowners often ignore is the recurring and possibly steep cost of keeping that home in good shape.

According to a report by the University of Illinois Extension, homeowners need to budget 1% to 2% of the purchase price of their home, each year, to cover the costs of home maintenance and repairs. That’s $3,000 to $6,000 a year on a $300,000 home, and if it’s older or has appliances that will soon need to be replaced, you may need to set aside as much as twice that amount.

When it comes to the fine line between routine home maintenance costs and those that send you into a personal financial nightmare, the tipping point is your level of vigilance.

Here are some of the most common home maintenance issues and how you can keep a small problem from evolving into a hefty burden.

Water Drainage/Damage

While water damage is unavoidable if the foundation of your house is cracked, much of it is preventable. All you need to do is respond appropriately in weather conditions that are known to cause damage.

If you live in a cold climate, stay on top of the snowfall.  David West, who owns Meadowview Construction, a remodeling and home renovations company in Georgetown, Mass., advises that homeowners clear the bottom few feet of snow from the roof, using a snow rake, as soon as possible after snowfall to prevent ice dams. These dams result in water creeping under the shingles, and eventually, leaking into your house. You’ll know them by that mysterious little drip on the ceiling or down around the window frames. On the surface, it may seem like a little burden that can be solved with the occasional bucket, but don’t be fooled. “It will cause some pretty serious water damage to the insulation and drywall,” says West.

Rain can also cause major issues that are avoidable. Kevin Leahy, the founder of a removable downspout system called “The Spout Off,” warns that non-working gutters aren’t just pointless, they’re harmful.

When rain is in the forecast, make certain that the gutter’s outlet (the hole in the gutter where the water flows out to the downspout) is clear of blockage. Failure to keep gutters working creates big costs like rotted boards, windowsills and water leaking into the foundation and basement.

Heating/Cooling Issues

The National Association of Homebuilders (NAHB) reports that the most you can hope for out of a heating, ventilation and air conditioning (HVAC) system is 25 years. Furnaces and air conditioning units generally sputter at the 15-year mark. But they’ll hardly last even that long without proper maintenance.

West advises that gas/oil boilers and furnaces be cleaned and maintained each year. This service will cost you about $200, but is the “single most important thing you can do to ensure long life and efficiency” of these systems. At the time of service, you can also ask the technician to leave a copy of your system’s efficiency rating. Armed with this knowledge, you can anticipate how much “life” is left in your furnace and plan your future home finances accordingly.

Sometimes, the most minor of tasks can help to save a bundle. Ian Patrick, of Los Angeles-based design firm Ian Patrick Interiors, says that many of his clients fail to do the most basic (and cheapest) maintenance of all: changing the filters in their HVAC units. These can be bought at any hardware store for a few dollars, and pay for themselves almost instantly in utility bill savings. “A dirty filter makes the unit work harder, so changing it is a very affordable way to make it run better and longer and saves you a service call,” advises Patrick.

If you have and use a fireplace, maintenance is also essential. You may be tempted to cut back on expenses by skipping yearly chimney maintenance. Preventative flue cleaning will generally cost $100 to $200.  Ignoring this necessary maintenance could result in the need to reline the flue completely, costing you $3,500. Get the point?

Roof Damage

Conditions like heavy snow, heavy rain and high winds, can severely impact roof quality. The material of the roof is also a determinant. An asphalt shingle roof will last about 20 years. Slate, copper and concrete roofs can last about 50 years.

You could also unknowingly be causing roof damage. Gordon Smith, owner of home inspection, remodeling and contracting company HomeSmith LLC, warns that walking on the roof to install holiday decorations or to clean gutters could crack roof materials, creating leaks. Replacing damaged shingles can cost as much as $4 per square foot.

Smith also cautions against using attics for storage, which can cause the roof to sag, or collapse the ceiling. It could “potentially cost hundreds to thousands of dollars in structural repairs, not to mention repairing or replacing anything that was under the ceiling when it came down,” he says.

Windows

While wooden windows last about ten years longer than their less costly aluminum counterparts, they require monitoring, and can be very costly to replace. (Expect to pay anywhere from $500 to $1,000 or more, depending the age and size of the window frame).

Windows that are not shaded by a porch, tree or a bush really take a beating, especially in desert regions. This can result in water damage, rot, and even heat loss.  “Combined with moisture, the wood expands and contracts with such frequency that it can compromise the stability of the entire unit,” says Patrick. Check regularly for peeling paint, cracks and chips in glazing, and have them repaired immediately to avoid a heftier bill down the road.

photo: gabi_menashe

So one of the things on your 2011 wishlist is a little bundle of joy. 

It’s a life-changing decision, to be sure. And not least important in starting a family is the inevitable impact on your finances.

Consider: this year, the U.S. government reported that a child born in 2009 will cost $222,360 to raise to maturity (at age 18). That includes basic costs like food and shelter, but also education and health care. And the projected cost creeps up each year.

So the moment the thought of having a baby enters your mind, you should start a baby fund.  We’re not talking about a 529 Plan (not yet, anyway), nor are we in any way implying that you need to have saved nearly a quarter million bucks. But you should at least try to cover the cost of your baby’s birth and any extra costs anticipated in his or her first years.

Sheryl Garrett, the author of the Personal Finance for Dummies Workbook, Certified Financial Planner and founder of the Garrett Planning Network, suggests preparing for new baby expenses in the following order: medical expenses, baby supplies, income reduction, daycare, family budget tune-ups and college savings.

Medical Expenses

Depending on where you live, child birth alone could range from $8,000 to $10,000, says Brad Imler, the president of the American Pregnancy Association. Choosing a midwife or birthing center (if you’re expected to have a normal childbirth), could cut your costs by half, or more. Birthing centers are normally connected to a hospital or obstetrician/gynocologist office. However, if you choose to hire a midwife or doula for an at-home birth, ask for details on their backup plan if complications arrive.

If you have insurance, you’ll need to ask your insurance company about your copay, deductible and any other related costs. How many doctor visits are typical? How much will you have to pay out of pocket? What are the costs for a premature birth?

Baby Supplies

Few things tempt parents-to-be more than baby outfits. Ah, the tiny shoes. Ooh, the cute little dresses or dress shirts. Stock up on those before the baby is even born, receive a ton more as baby shower presents, and you’ll quickly find youself with a pile of never-worn baby clothes.

Garrett suggests that you start to accumulate baby items, but in a fiscally savvy way. For instance, she says “Infants don’t use shoes for long. Buy used.” And borrow as much as you can from friends and familyse who have baby clothing from older children. Baby clothes are usually so well-preserved that there’s no shame at all in dressing your little precious in hand-me-downs. Garrett, who is now in the process of adoption says, “Almost everything has been given to us.”

The same applies to other baby supplies, from toys to diaper genies and even cribs. Just make sure any second-hand items you buy or receive as gifts have not been subject to a recall.

One Income or Two?

Even if both parents remain employed after the baby arrives, you may want to take off for a few weeks past your paid maternity or paternity leave.  “Wouldn’t it be lovely if you could afford to choose whether or not to take advantage of company-offered unpaid leave after your paid maternity or paternity leave ends?” says Garrett.  

In that case, you’ll obviously have to make sure you are covered financially well in advance. Start by discussing different scenarios with your partner. Can you cut your spending or take on extra shifts at work so you can build a special fund to cover living expenses for the weeks or months you plan to stay at home without pay?

Also discuss with your company’s human resources department how much time you have for maternity or paternity leave and if an extension is possible. Then calculate how much you need to stash away if one person reduces their work for three months, six months, or even until the child enters kindergarten or preschool.

Childcare Prep

Daycare for your child falls into three categories: family and friends, private nannies or daycare centers. You may be fortunate enough to have grandma and grandpa watch your kids while you work. If this is the case, make sure you don’t overtap this resource, says Garrett.  Have a candid discussion with your parents about how much babysitting they can handle. Have a backup fund set aside if this option doesn’t work out.

According to the 2009 National Survey of  Childcare Resource and Referral State Networks, the average cost of childcare exceeds the annual cost of food per family in nearly every state. A private nanny can be multiples of daycare costs. Since regional childcare costs vary widely, ask your friends what they spend on childcare or nanny services.

Then there’s babyshare. Sharing childcare duties can be a community event, Garret says, as you form a network of other new parents who can take turns watching each other’s children for the evening or during the daytime. Make sure you are comfortable with such an arrangement and, obviously, that you know and trust each member of this community.

Budget Tune-Up

Your baby needs a place in your budget, and a big one, at that. Start by deducting from your budget your determined income reduction. Then see what you have left in savings. Next, look for budgeting items you’ll naturally reduce. Maybe, your natural budget cuts will be in the Restaurants category: instead of going out with friends three nights, you’ll have just one (if you’re lucky!).  Finally, calculate child-specific expenses using the estimates you’ve found for daycare, supplies and medical costs. Use babycenter.com’s Baby Cost Calculator to account for and calculate any remaining expenses. If your budget is still short, see what else you could cut or reduce the amount of time you’ll take off.

College Savings

The cost of a college education can intimidate any parent — and many find themselves stressing over it from the day their child is born. If money is tight, college savings should be your last priority. You could start with saving as little as $10, $25 or $50 a month, says Garrett, and work your way up as you have the money to do so. Never sacrifice your own retirement for your baby’s college fund.

Remember: If you plan ahead for your baby, you can focus on the joys of your child’s first steps, first day at kindergarten and school, and even the day they go off to college, instead of worrying about money.

Reyna Gobel is a freelance journalist who specializes in financial fitness. She is also the author of Graduation Debt: How To Manage Student Loans and Live Your Life.

(photo: Christian Steen)

When you’re in college, budgeting is different than budgeting in the outside world. To begin with, your largest bills — tuition, room and board — could be due on an annual or semester basis. Even most your meals could be paid-for in one large upfront payment (a meal plan) instead of with daily or weekly  trips to the supermarket or favorite food joints. 

Try these calculators to help you plan and estimate your expenses. Then, use Mint.com to track the expenses from the budget you create.

General College Budgeting Calculators

Bankrate.com

Bankrate’s student budgeting calculator doesn’t just have entry spaces for school expenses, groceries, living expenses, etc.  It has mini calculators for each section. For instance, if you click on the school expenses calculator, you’ll find the following subcategories: tuition, textbooks, supplies and related materials, lab fees, library fees, photocopying, and other. You can also input your expenses based on time period: Semester 1 & 2, semester 2, start of school year and monthly. Click view report after you press calculate. If you don’t, you’ll only see annual tabulations in each category. The report is intense. It breaks your expenses down for the school year from September to April, as well as for each category.

WalletPop.com

WalletPop’s “How much should I budget for college living expenses?” calculator is a one-page, expense-based budgeting calculator with five main categories: educational, communications, personal, transporation, insurance and other. There is some sub-categorization, but it’s still on the same page. For instance, education breaks down to books and lab and other fees. Tuition and housing aren’t included, as this calculator is meant to isolate other expenses. A nice feature within this calculator is the living expenses plus 10% feature. Budgeting with a cushion is a great habit to start while still in college. Results are provided on an annual school year basis but with a per month average.

Direct Loans

The Department of Education’s Budget calculator calculates both expenses and income on an annual basis. It’s a one page, two-column calculator. You can enter all your inputs without scrolling. You can also click on categories, such as housing, to input information for subcategories, such as dormitory/rent. This is the only calculator of this group that mentions dorms by name.  

Finaid.org

This calculator is a single-page budget calculator that analyzes your budget on an annual basis. This is useful for calculating how much you’ll need to earn from a part-time job or other sources during both semesters. The income section is extensive. It’s the only calculator reviewed that mentions spouse’s income.

College Answer

Sallie Mae’s (SLM) College Answer’s “Repaying Student Loans” monthly budgeting calculator is a one-page, two-column budget calculator for expenses after college. The calculator is for students to input expected expenses with and without student loan payments. The calculator is a useful tool to consider how much to borrow for education based on how borrowing will affect your life.

Worth of Graduate School Calculator

Kiplinger

If you’re considering going back to school, Kiplinger’s “What Is the Payoff for Going Back to School?” calculator can help you look at the financial pluses and minuses of your decision. This calculator isn’t designed for short-term budgeting. Thus, you won’t see items such as food and clothing. You’ll input details that will help you compare the income you would earn without graduate school to that with a graduate degree, factoring in its cost and potential salary increase.

Future Income Calculator

Salary.com

Salary.com’s “Salary Wizard” calculates salary ranges for job positions based on area of the country. Since it’s a range, budget for the lower level of the scale if you’re new to the work force. This calculator is a necessity for estimating how much you’ll make when you get out of school. You can bring this number to your financial aid or student money management office to make sure the debt you accumulate is manageable with the salaries in your field.

Reyna Gobel is a freelance journalist who specializes in financial fitness. She is also the author of Graduation Debt: How To Manage Student Loans and Live Your Life.

(photo: Live for Films)

Gareth Edwards considers himself able to blow his money in the most unnecessary ways. However, when it came to shooting his postapocalyptic sci-fi movie Monsters, which opens October 29th, the young British director realized that shrewd spending could go a long way.
 
Although it wasn’t made for the rumored $15,000, Edwards managed to slap together a monster movie that looks like it cost millions on a budget that sits in the very low six-figure region.
 
By managing the film’s budget in the most economical way, Edwards learned a few lessons about personal finance.

1- Don’t waste money on bells and whistles

The first step in keeping his film’s budget down was choosing the right camera. For Edwards, it was a matter of choosing what works well and isn’t laden with extras. Directors are likely to go for expensive cameras that shoot on 35mm film to garner those beautiful cinematic visuals.

“Because of these new depth-of-field cameras that are coming out with video, you don’t need all these elements to make things look cinematic,” says Edwards, who used the Sony EX3, a mid-range camera between commercial and professional.

It suited Edward’s production just fine, producing stunning visuals that audiences will see when Monsters comes out. It also eliminated the need for a film crew to manage lighting and camera movements, since the video technology doesn’t require such bells and whistles.

Edwards can still relate to people who want to wield the latest and most advanced technology.

“If something’s got two more buttons than it had before, then they’ll buy the new one. They want the new phone or the new camera or something that’s just a little bit better.”

Edwards’ advice: Spend less on the little gimmicks you don’t need and buy what’s affordable, functional and necessary.

2- Purchase when you can – avoid renting

When Edwards was shopping for cameras for his production, the option of renting was available. However, the director realized that for the price of renting a camera for a longer period of time, he could just purchase it. As a bonus, his financiers got to keep the cameras for future productions. It makes for a smarter investment.

Edwards notes that the same can be said for other everyday products, like cars, condos and even DVDs. After all, if you keep a DVD rental for long enough, Blockbuster would charge you more than the retail price for it.

3- Vacation in interesting but affordable places

Shooting in affordable locations like Guatemala, Costa Rica and Mexico made perfect economic sense for Edwards. For starters, he managed to throw small amounts of money around to locals, so that he could shoot on their property, and garnered many essential performances from the nonactors available there.

These countries also gave Edwards great postapocalyptic-like visuals to include in his movie, like when he saw a man at a border control in a mask spraying a truck with some ominous-looking gas. “To organize that and pay for that would have cost a fortune,” Edwards says, as he relishes how great sights turn up for free in these locations.

Instead of spending wads of cash on resorts in expensive locales, try seeing something exciting for cheap. “When you go somewhere as exotic and interesting as Guatemala, Mexico or Costa Rica, you’re guaranteed so many details and random things that are all visually really interesting,” Edwards says. “You don’t have to organize anything. Something will just turn up. It’s about being open-minded.”

4- Don’t be tricked by sales

Though the only bargains Edwards met with are wholesale nonactors during his shoot, he couldn’t help but offer this advice. Don’t purchase what you weren’t planning to buy, just because it’s on sale.

Bottom line: Keep away from sales. Nothing good can come of it. 

Budgeting Tips From Movie Director Gareth Edwards was provided by AskMen.com.

(photo: iStockphoto)

Manufacturers just love to helpfully instruct us on how to use their products. Some directions are painfully obvious, such as the packet of peanuts that reads, “Open packet, eat nuts.” Some instructions are silly, like the bottle of Nyquil that cautions, “Warning: may cause drowsiness.” Then there’s the warning on my new iron: “Do not iron clothes on body.” Umm, what?    

Some instructions seem like they’re made to be ignored, especially subjective instructions about how much of a product to use or how often to replace it. How do we know if something really needs to be tossed out every few months, or if its expiration date is set in stone?

When manufacturers make these recommendations, are they thinking about what’s best for the consumer, or are they just thinking about what’s best for their bottom line? 

Lather, Rinse, Repeat?

Is there really a reason to wash twice? Is the product so ineffective that it can’t clean properly the first time?

The reality is that you only have to shampoo once. According to CNN Money, the “rinse and repeat” instruction came about in the 1950s, when people washed their hair less often and used heavier, stickier hair products. Sometimes, the first shampoo wouldn’t generate suds because of all that oil and Brylcreem, so a second wash was necessary in order to work up a lather. Shampoos don’t actually need suds to work, but companies know that customers like to feel as if they’re really getting something clean. Encouraging a second washing was a way for users to generate the suds they expected, with the bonus that they used more shampoo in the process.

Nowadays, not only does “rinse and repeat” increase shampoo sales, it also increases sales of other hair products, since excessive washing can dry out hair, leading to the purchase of conditioners and other treatments. Of course, anyone who feels that washing twice makes their hair look its best should feel free to shampoo away. If you want, you can even use more than the recommended dime-sized amount. 

Oil Change Change-Up

The conventional wisdom says that we should change a car’s oil every 3,000 miles, but some experts say that might be too conservative. Auto manual recommendations vary between 3,000 and 10,000 miles, but the guys behind NPR’s “Car Talk” radio show recommend changing oil every 5,000 miles or so. According to them, “it may be too soon for many people and too late for a few, but for the vast majority, 5,000-mile oil changes will help your engine last to a ripe old age.”

Changing the oil regularly is vitally important to prevent engine damage, but modern engines and oils have a bit more leeway than their older counterparts, so they can go longer between servicing. Synthetic oils, especially, resist breakdown for many thousands of miles. People who should consider changing more frequently include those who regularly tow or carry heavy loads, people who go through extreme seasonal climate changes, those who often make quick starts or slam on their brakes, and people with older cars. 

The “Magic” in Your Fridge

Who doesn’t have an opened box of baking soda in his refrigerator to eliminate odors? The one currently sitting on my shelf says that the box should be changed out every month, but it wasn’t that long ago that the instructions were to change it every three months.

So is baking soda a third as effective as originally thought? Maybe the company decided that changing the box every month as opposed to every ninety days would buy the CEO that Learjet a lot faster, because there’s no evidence-based reason for it to be changed so often. Baking soda is purported to neutralize odors by absorbing them, and although it has many household uses, some people don’t find it especially useful in the refrigerator, regardless of how fresh it is. If you’re someone who believes in the magic of Arm & Hammer, change the box as often or as infrequently as you desire, since it probably doesn’t make a difference either way.   

A Load of Nonsense

Most detergents, either liquid or powder, come with caps and scoops that show how much you’re supposed to use for a load of laundry. But is that amount really correct?

Using too much detergent does not result in cleaner clothes; it results in filmy residue on clothing, soap deposits and lint in your washing machine, and can potentially harm the machine itself. It can also break down clothing fibers, causing them to look old and worn out. No matter how much the detergent bottle says to use, you can probably use less. Some people even recommend using no more than half the marked amount. Most products are labeled in such a way that most consumers will unwittingly overdose, says Consumer Reports. You should only use as much as is necessary to get clothes clean, which is not as much as is marked on the package. 

If you have a high-efficiency washer, however, it’s important to follow the instructions and use only a high-efficiency detergent. These are specially made to generate fewer suds, and using the wrong product can cause the machine to use more water to rinse the clothes, or even clog filters and ports. As with shampoo, suds are artificially added to soaps and detergents to give the illusion of thorough cleaning, although clothes can be plenty fresh even in the absence of them. 

What’s Really “Dry-Clean Only”?

Despite what the care labels say, many clothes marked “dry-clean only” can actually go in the washer. The danger isn’t the water—it’s the agitation of the machine, which can cause stretching, ripping, or other damage to delicate fabrics. If put into the dryer, items can shrink or stretch even further.

Instead of spending a fortune on dry-cleaning, many knit tops and sweaters can be washed on a gentle cycle and then laid flat to dry. Items that are more delicate can usually be washed by hand in a sink with a small amount of gentle or homemade detergent. Anything truly rare, expensive, delicate, or old, however, should probably be dry-cleaned for safety’s sake, along with suits, formal gowns, down coats, anything made of lace or silk, or anything with extensive beading or detailing. 

With the exception of your wedding gown and your sports car, which should be handled by professionals, use your best judgment for taking care of the things around your home, and remember that what’s on the label isn’t always the best advice. When it comes right down to it, companies don’t really care if we have odor-free refrigerators or shiny hair. They care about us buying more of their products, and they’ll say whatever they have to in order to make that happen.

Five Ways Companies Trick Us into Buying More Stuff was provided by DivineCaroline.com.

photo: AMagill

Times are still tough, and many of us need an inspiration to start a budget, or to keep working on one.

Some of us also need to change how we spend our money, or take stock of how we use our credit cards. Truth is, a good number of families get into debt because of misusing their credit cards.

For this week’s personal finances roundup, we have eight stories of frugality and budgeting that should get us into thinking about our spending habits.

Back to School Budgeting

With the summer over and the school season upon us once again, Budgets Are The New Black asks how much an average family spends on back-to-school shopping. There is a poll for readers to guess what the average family’s annual spending should be towards school and education. The results are surprising; it may make you think about your own spending for back-to-school “needs.” Our suggestion: if it’s not a dire need, teach your kids to save a little and cut back on some purchases.

Kids and Money

When it comes to teaching your children about money, it’s a good idea to start early. Trent from The Simple Dollar talks about how his son recently bought a toy without throwing a tantrum, and instead worked towards buying the toy he wanted by saving up his allowance and family gifts. An Ode to My Son’s Piggy Bank is an inspiring read for those who wonder about how to begin talking to their kids about personal finance.

Big Life Changes: Adjusting Family Finances

Speaking of family budgets, let’s take a look at an article by Funny About Money, who initiates a thought-provoking discussion called Scraping by on $110,000? The article refers to the common issues faced by a two-income family that’s going through the adjustment of living with a new baby. Here, a wife decides to work part-time in order to take care of her child. Funny About Money looks at how far a six figure income can go and how the cost of living can impact your income requirements. Such life changes can make us rethink the way we spend. It may be a good idea to evaluate our own spending and assess the major “leaks” and the frivolous things we can do without. Also, what are your strategies for maximizing what you’re earning?

Couple’s Money: Joint, Separate, or Both

Along these lines, Punch Debt In The Face shares the story of how he and his wife are working through their recently combined budget in The $100 Discussion. They’re trying to work out how to give each other room to spend on wants and frivolities. They are considering several schemes, including setting a spending cap that each should honor without the need for extra discussion. So should they cap the spend-as-you-like allowance at $100? Or should it be lower? It’s certainly food for thought for couples who have combined their bank accounts.

Responsible Credit-Card Use

If we really think about it, one of the reasons why many of us struggle financially is due to our heavy reliance on credit cards. We become complacent about our expenses and find it easy to spend because we’ve got credit we can use. If you’re of this mindset, using plastic may not be the wisest thing. While credit cards are a useful financial tool, it’s important to learn how to use them responsibly so that you don’t get into trouble. Investor Junkie discusses Responsible Credit Card Use and offers tips on how to deal with credit wisely.

Reigning In Purchases

Speaking of using credit cards responsibly… or not, Living Almost Large reviews the book (and movie) Confessions Of A Shopaholic and concludes that it’s a bit over the top. The question here is — how do you use your credit cards? Do you use them for groceries or emergencies, or to fund shopping sprees? Typically, we incur debt gradually due to unexpected financial hardships and emergencies, although there’s a smaller percentage of people who get into trouble due to a shopping addiction.

So how do you break a shopping addiction? Here’s a tip for shopaholics who enjoy brand name merchandise. It’s a matter of perspective: factory outlets for designer brands carry the same quality wares that you normally expect to buy in department stores, but at a lower price. Yes, there may be some items that will contain a defect or two, but if you choose well, you could walk away with a “perfect” designer original from its factory outlet. You’ll find other frugal tips on fashion in Keeping Clothing Costs Down from Savings.com.

Getting Out of Debt

The Happy Rock shares an inspiring anecdote about a friend who resolves his $40,000 debt in Into Debt And Out Again – Overcoming $40,000 Of Debt. This story will inspire those who are struggling with bills and debt and show them just how they can become debt free again, sharing both the financial mistakes and successes of one individual.

Anyone can live a frugal lifestyle — you just have to put your mind to it. These stories are here to help reaffirm this truth and beef up our resolve to keep our expenses under control.

Silicon Valley Blogger (SVB) runs The Digerati Life and The Smarter Wallet, where she writes about  general personal finance topics such as investing, budgeting, debt management and small business ideas.

photo: Bloomington Salvation Army

Once high schoolers go to college, they’ll manage their own money. And without the help of their relatives, what are the chances they will be prepared to do so?

Less than half of all US states have personal finance education requirements in high school, according to this Jump$tart map of State Financial Literacy Requirements. Only four states require a full semester.

If your child or other family members are entering their senior year of high school and you worry about how they’ll manage their money when they head to college, use back-to-school shopping as a trial run for college budgeting. If you’re not the teen’s parent, you may ask the student’s parents to get involved and offer to help administer the exercise.

Lesson 1: Setting a Budget

Start by sitting down with your teen and setting an overall budget for back-to-school expenses. That should included school supplies, clothing, books and initial costs of extracurricular activities. An incentive you can use for budgeting for supplies offering to apply  unspent cash towards fun activities or clothing.

Lesson 2: Comparison Shopping

* Books

While it’s unlikely teens will buy textbooks, it is very likely that they will need to buy books for various classes. Before purchasing a book, ask them to provide you or the supervising parent with five comparison prices from online and offline outlets.

* Supplies

Students should sort through online and offline sales flyers for the best deals on pens, pencils, notebooks, etc. In order to budget accurately, contact the school for a recommended supply list first.

* Clothing

For most teenagers, this is the fun part. Turning it into an educational activity may down the mood a little, but over the long term, it will pay off. (This also might be a good time to throw in the “One day you’ll thank me” bit.

With your student, put together a list of what they need (new jeans? how many new shirts and tops?) and the amount of money you can spend. Don’t let them add allowance money to make up the difference for extra or more expensive items.  Asking your teen to provide receipts for transactions eliminates this temptation.

* Extracurricular activities

Whether your teens plan on participating in drama, debate, football, or cheerleading, contact the coach or teacher first to find out how much money you will need to set aside for this budget category.

Let’s say your teen plays basketball and is on the debate team. One basketball uniform costs $249 (the estimate is based on numbers from the National Federation of State High School Associations’ publication High School Today). That includes $89 for a custom jersey, $74 for custom shorts , $6 for socks and $80 for shoes. According the NFHS Assistant Director John Gillis, you will have to buy one uniform for home games and one for away games. So your total for two uniforms and one pair of shoes is $418. Not exactly chump change.

For debate, we’ll use an example of a student who lives in one of the US States where computers are allowed at tournaments. According to NFHS Fine Arts Director Kent Summers, one quarter to one third of all states allow computers. So if the student buys a business suit for $100, a laptop for $400, a spare laptop battery for $50, a USB key for $10, and a backup file system and office supplies in case of computer failure for $100. The total cost is $660. That could easily double or triple if you allowed your child to splurge on a more expensive computer.

Lesson 3: Debriefing

At the end of this exercise, your teens may have money left over to spend on additional activities. Or they may have had a difficult time buying everything needed. Go over what happened in each spending category in detail.

It’s best that high schoolers learn the basics of budgeting now, with the understanding that once they’re off to college they’ll need to work with numbers on a much larger scale. Back to school shopping may involve hundreds of dollars, but managing college expenses will require budgeting with thousands of dollars each semester.

Reyna Gobel is a freelance journalist who specializes in financial fitness. She is also the author of Graduation Debt: How To Manage Student Loans and Live Your Life.