Utilizing a monthly budget allows you to see where you are spending your money and keeps your spending on track. Managing your monthly cash flow will also help you maintain a balanced budget and keep you out of debt.

For your convenience we have provided this monthly budget financial worksheet in both a printable (pdf) format as well as in a downloadable (excel) spreadsheet format.

Go to the ant, thou sluggard; consider her ways, and be wise: Which having no guide, overseer, or ruler, Provideth her meat in the summer, and gathereth her food in the harvest. Proverbs 6:6-8.

Monthly Budget Financial Worksheet (pdf)

Monthly Budget Financial Worksheet (Excel) 

Last year, Cullen Murphy wrote a very popular book entitled Are We Rome? Murphy examined the fall of the Roman Empire and showed the striking similarities with twenty-first century America. These similarities included excessive corruption in government, issues with border controls, arrogance towards the outside world, over-reliance on our military power, etc. 

However, maybe the more relevant question today is – Are We Egypt? 

Thousands of years ago there was a time of abundant prosperity in Egypt. The economic boom continued for seven consecutive years. Riches were made and the nation lived as though the prosperity would continue forever. 

Then came the Great Depression of Egypt. Investors who had speculated on real estate were left with worthless soil as the land would no longer produce grain anymore. Many others had used the wealth created in the years of prosperity to over-leverage themselves in expectations of an even greater era of prosperity. 

After all, a new age of prosperity had arrived in Egypt. While there may have been economic cycles in the past, this time it was different. Sadly, it seems that no one was prudent enough to foresee a day when the prosperity would end. 

“Yea, they are greedy dogs which can never have enough, and they are shepherds that cannot understand: they all look to their own way, every one for his gain, from his quarter. Come ye, say they, I will fetch wine, and we will fill ourselves with strong drink; and to morrow shall be as this day, and much more abundant.” Isaiah 56:11-12 

The first year of the famine in Egypt was undoubtedly a period of denial. After all, most recessions are short-lived and so the experts would have naturally predicted that the economy would soon resume its growth pattern again. 

In our current economic crisis, we have already moved beyond the denial phase. A recent survey of 51 leading economists showed that they unanimously agreed that we are indeed in a recession (of course the average person could have told you that months ago). 

We are now into the blaming stage – blaming everyone except ourselves for the conditions we find ourselves in. This is typically accompanied by outcries to the government to bail us out of our problems (just like in Egypt). 

The government has stepped up with hundreds of billions of dollars in bailout packages, interest rate cuts and stimulus plans, but the underlying problems that have crippled our economy cannot be resolved by simply waving a magic wand. 

So what has happened to the tremendous amounts of wealth created in recent years? Sadly, it probably never was real wealth in the first place. The prosperity of fools is never real prosperity. It is a credit-driven, artificially created wealth that soon evaporates leaving behind disastrous consequences. 

The housing market was the first victim of the wealth bubble to pop. Coming out of the 2001 recession, real estate became a booming market. New wisdom said that real estate was a safe investment because there is only a limited supply of land and real estate prices “always” go up. 

Individuals ended up buying homes they couldn’t afford while financial institutions contributed to the expanding bubble by offering exotic financing options to people who couldn’t qualify for traditional loans. 40 year mortgages, interest-only mortgages, teaser-rate mortgages and even negative-amortization mortgages (where your principle balances goes up) were popularized over these years as individuals grasped for a lifestyle that they really couldn’t afford. 

But the credit-driven prosperity extended beyond just housing. Over the past decade we have experienced one of the most extravagant spending sprees in history. American consumers purchased everything from flat-screen tv’s to furniture, from designer clothing to vacations – all with the magical plastic credit card. In the last 10 years, Americans learned we couldn’t live without our daily $4 Starbucks, Netflix, and the very latest cell phones and electronic gadgets that Silicon Valley could produce. 

Of course an economic boom driven by credit can’t last forever. Financial institutions are now feeling the effects of their lax lending practices. In recent months, the massive amount of debt that banks now have on their balance sheets coupled with escalating delinquency rates has basically frozen the credit markets. There are multitudes of businesses and individual consumers that would like to borrow money, but there is none to lend. Commercial banks have become much more careful about who they lend money to, while other institutions which a couple of years ago represented 70% of the debt market have now pulled out completely. 

To date, the financial industry still doesn’t know the extent of the damage done from the foolishness of the last few years. Losses stemming from the subprime mortgage crisis are approaching $1 trillion, while speculation continues over how big the impact of credit card losses will be. Bank of America CEO Kenneth Lewis recently said, “We, as an industry, may end up with possibly the highest credit card losses the industry has ever experienced.” 

This generation seems to have forgotten the basic financial principles that our parents and grandparents adhered to. In short, don’t spend more than you earn. In the decade of the 1960’s, the personal savings rate averaged 8.3%. In the 1990’s, that savings rate fell to 5.2%. Since the turn of the century, the savings rate is averaging only 1.6%. Over the next few years, people will need to get reacquainted with the concept of savings and less familiar with buying on credit. 

Not everyone needs to follow the path of the fool in chasing after artificial prosperity. Instead if you will just follow the wisdom of God’s Word, you will find He can give you real prosperity.

Subaru sales jumped 34% from last year’s level as the company sold nearly 22,000 vehicles up from less than 17,000 in July 2008. 

Hyundai Motors sales were up 12% as the company’s value proposition is resonating with auto buyers during this economic recession. 

Kia Motors also saw their monthly sales increase nearly 5% on strong car sales. Meanwhile, General Motors sales declined over 19% as the free-fall continues for the former largest auto manufacturer. 

Hyundai and Kia were the first manufacturers to offer their customers the cash-for-clunkers rebate and it paid off. Their combined market shared has increased from 6.6% in July 2008 to 7.5% in July 2009. American consumers took advantage of governments CARS or cash-for-clunkers rebate and used the opportunity to buy low priced, but fuel-efficient foreign cars.

The Bible talks of money as a “defense”. It has many obvious benefits and when used properly can help further the work of God. So it is very important that God’s people know how to make use of money for His glory. Even if no one else on the planet does, surely the children of God should understand the proper use of money. According to John Wesley, the proper use of money involves gaining all you can, then saving all you can, so you can give all you can.

Gain All You Can

It’s true that a Christian’s goal in life should never be to try and attain great riches. There are certainly too many people that focus their entire lives on gaining wealth and despite whatever material gains they may achieve they often end up losing their souls. However, there are also individuals who never seem to grasp that we also have a responsibility to provide for ourselves, our families and for the work of God. Paul said if a man provides not for his own household he is “worse than an infidel”. 1 Timothy 5:8. 

One of the criticisms of the generation that is entering the workforce today is the lack of work ethic that was prevalent in earlier generations. Even in today’s bad economy, it’s surprising how frequently individuals will give up good paying jobs because the work is too “hard” or just to be able to do something that is more “fun”. However, in order to gain all we can, we must exhibit a work ethic and industriousness that far exceeds that of our worldly peers. 

We have a responsibility to make the most of our earnings potential. For some that may require getting further education or certifications, things that may require significant effort, but can pay off by providing higher income potential. However, a Christian should never pursue employment that would put their health, mind, or soul at risk. There are some careers that a Christian should never pursue, regardless of how lucrative it may be. 

“Gain all you can by honest industry. Use all possible diligence in your calling. Let nothing be done by halves, or in a slight and careless manner. Let nothing in your business be left undone if it can be done by labour or patience.” 

Save All You Can

While many people are happy to try and gain all they can, Americans as a whole have really struggled with the principle of saving anything at all (much less all they can). In large part, even our current economic recession was necessitated by individuals spending more than they earned with no regard to actually living within their incomes.

Of course the Bible has always taught the principle of savings. “There is treasure to be desired and oil in the dwelling of the wise; but a foolish man spendeth it up.” Proverbs 21:20.   

In the mid-1700’s, John Wesley proclaimed that the people of his generation were simply wasting money by spending it “merely in gratifying the desires of the flesh.” 

“Do not waste any part of so precious a talent merely in gratifying the desire of the eye by superfluous or expensive apparel, or by needless ornaments. Waste no part of it in curiously adorning your houses; in superfluous or expensive furniture; in costly pictures, painting, gilding, books; in elegant rather than useful gardens.” 

Unfortunately, excessive spending in order to maintain a luxurious lifestyle is even more prevalent today than Wesley could ever have imagined. That only makes his words of wisdom even more relevant for today. Let the world frivolously spend their money with no regard for tomorrow. However, let us as Christians be a light to world even in how we use our money. 

Give All You Can

While there are plenty that are willing to try and gain all they can and some that are willing to save all they can, there are few that are willing to give all they can. However, you can travel across this nation and see beautiful church buildings, hospitals, and universities all that were built because there were individuals that took John Wesley’s message to heart. Major universities like Vanderbilt and Duke where started because of large Methodist endowments that were made possible by men that “gained, saved and gave” all they could. 

This principle of giving is clearly highlighted throughout the Bible. “There is that scattereth, and yet increaseth; and there is that withholdeth more than is meet, but it tendeth to poverty.” Proverbs 11:24. Some people love money so much that they are willing to work multiple jobs and save money meticulously, just to watch it accumulate in their bank account. However, if you don’t use money properly, you might as well not have any in the first place. 

John Wesley advocated that after providing for your own needs and the needs of your family, then you should be able to use some of the money that you have saved to “do good to them that are of the household of faith” and “as you have opportunity, do good unto all men.” This goes beyond your tithes and offerings. All that we have belongs to God and we will be required to give a full account of our stewardship before Him.

“I entreat you, in the name of the Lord Jesus, act up to the dignity of your calling! No more sloth! Whatsoever your hand findeth to do, do it with your might! No more waste! Cut off every expense which fashion, caprice, or flesh and blood demand! No more covetousness! But employ whatever God has entrusted you with, in doing good, all possible good, in every possible kind and degree to the household of faith, to all men!”

The recent massive rate cuts and economic stimulus package indicates that the government thinks the economy is in worse shape that many had originally expected.  While these actions may indeed boost the economy and financial markets in the short-term, over the long-run they may lead to an even worse recession in the future.   

One of the primary issues with the current economy is that the average consumer is very highly leveraged.  They have taken out home equity loans and racked up high credit card balances to support a lifestyle they couldn’t afford.  The sub-prime loan crisis was in large part caused by individual’s sense of entitlement to houses they couldn’t afford.  

The motivation behind the Fed’s recent rate cuts is to make money cheaper by enticing consumers and businesses with lower interest rates.  Unfortunately, giving highly-leveraged consumers access to cheaper money may hurt the economy in the long-term as they use cheap debt to continue to fuel a lifestyle they can’t afford.  

Greed and indiscretion has led us to this point.  Government handouts and cheaper debt won’t correct the situation.  And it goes much deeper than just the housing market.  Household spending, consumer debt, financial sector profits – all need a correction to get back to sustainable levels. That’s bad news for investors and the global economy, which still depends heavily on U.S. consumption for growth. 

So how can you navigate the current market volatility without losing both your money and your mind?  Well, maybe the most important advice is to take a step back and remember that it’s just money.  Money should serve you, rather than you serving money.  That being said, there are some specific investment strategies you can take to benefit from the current market conditions. 

Bear Funds

There are several mutual funds out there which hold “bear” portfolios.  These are funds that sell short, buy put options, use leverage, or employ other strategies to increase in value as stocks decrease in value. 

Bonds

When the stock market begins to decline, investors often run to the safety of bonds.  This ends up driving their prices up and their yields down.  Also, the recent Fed rate cuts have also hurt bond yields.  A 10-year government bond currently yields around 3.5% while a high-quality corporate bond yields around 5%.  So while bonds tend to be much safer than stocks, don’t expect them to deliver spectacular returns. 

Defensive Stocks

Defensive stocks are those companies which tend to perform well regardless of whether the economy is good or not.  These are consumer staples companies – providing products that consumers need regardless of the economic situation.  Food and utility stocks are perfect examples, as consumers will still need to eat and warm their houses regardless of what the overall economy does. 

Precious Metals

When the stock markets falls, investors tend to flee to the safety of precious metals.   Already gold prices have topped $900 and most expect it to top $1,000 before the year is over.  It’s possible to capitalize on these rising prices by either investing in individual mining stocks or precious metal funds.  

Value Investing

It’s easy to get depressed when you see the stock market dropping and all you hear is gloomy news about the economy, but maybe you are taking the wrong point of view.  When people go to the mall and find a spectacular sale – they are generally quite excited.  The same can be true in this current market.  Lots of good quality companies suddenly find their values greatly depressed by the current economic misery.  Buying these companies can end up being the smartest investment decision you make.  For example, after the dot-com bubble burst, Corning (GLW) saw its stock price drop to under $2 per share in late 2002.  However, just four years later the stock price was back over $20.  Individuals who were able to invest in a pessimistic marketplace ended up with phenomenal returns.  Those types of returns are only made possible by the excessive negativism that prevails during a bear market. 

Finally, it’s important to remember is that even the worst economic recessions don’t last forever.  The U.S. economy is extremely resilient.  Over the last 63 years, there have been 10 recessions. The average length of these downturns has only been about 10 months.  In fact, there have only been 2 recessions in the last 25 years (early 1990’s and 2000-2001) and both have been relatively brief. 

So while the economy will certainly recover from its current recessionary woes, the prudent man still should foresee the evil that could come over the next few months or even years.  Unemployment always rises in periods of economic recession.  So now would be a good time to make sure you have an adequate Emergency Fund in case the worse should happen.  It is recommended to have at least enough money set aside to cover 3-6 months worth of living expenses.  This money should be kept in a safe and highly liquid savings or money-market account. 

It is also a great time to focus on any outstanding debt that you do have.  Recent Fed rate cuts have lowered mortgage rates to their lowest level in years.  So it may be wise to consider refinancing your home if you have a higher interest rate.  Also, any credit card debt you have should be attacked immediately.  Living a financially-responsible lifestyle will enable you to weather any type of economic conditions.

One of the more controversial fees recently implemented was the additional charge to check your bags. Most airlines started out by charging $15 each way for your first checked bag and then doubling the fee if you would like to check a second bag. So where you once could fly across the country for simply the price of an airline ticket, now you must pay an additional $80 or more if you want to check your bags.

I guess those fee’s must be working though. American Airlines just announced that they are going to increase the fee’s it charges you to check bags by $5 each. So now you will pay $20 each way for your first checked bag and $30 each way for your second bag. These changes are scheduled to start on August 14 and could add up to $100 for each traveler.

Of course the airline industry has been in a world of hurt for years and has grasped at every possible opportunity to squeeze more dollars out of its cargo, eh passengers.

American airlines like to point to fact that discount airlines in Europe charge fees for almost everything from the convenience of online booking to the ability to board the plane first. European discount airlines such as Ryanair and easyJet have successfully charged passengers many types of fees that are just now being introduced in the States.

The big difference between the US carriers and the European discount airlines though is the initial ticket prices. Ryanair routinely offers airline tickets for as little as £1 from the UK and €1 from mainland Europe. Even with taxes added on, you can often fly for as little as $20 – $30. When you can buy an airplane ticket for that reasonable of a price you don’t mind paying a few extra fees.

However, in the U.S. it’s almost impossible to get a plane ticket anywhere for less than $200 – $300. Then after paying that much for the ticket, the airlines expect you to fork over more money for all the extra fees they dream up. Unfortunately, the worst is probably still ahead as rumors are flying about additional fees that the airlines may be considering implementing in the future.

Your credit report is a “history” of how you pay your bills. It includes information on where you live, how you pay your bills, and whether you’ve been sued, arrested, or filed for bankruptcy. Nationwide consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. Consumers should check their credit history every year to make sure the report is accurate. This not only provides a way to check your credit history, but also helps to protect against identity theft.

There are three ways to obtain your free credit report:

 1. Visit www.annualcreditreport.com. This is the only website authorized to provide you with your free annual credit report.
 2. Call the toll-free number 1-877-322-8228 to request your free copy.
 3. Mail a written request to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

Phone and mail requests usually take approx. 15 days or you can obtain the report immediately by visiting the website. In order to obtain your report, you will be asked to provide the following information to verify your identity and to protect your privacy:

 • Full name
 • Date of Birth
 • Social Security Number
 • Current Address
 • Previous Address (if you’ve moved in the last 2 years)

For security purposes, you will then be asked 3-4 verification questions.  These questions vary from person to person, but examples would be:

 • The name of the company you pay your mortgage to.
 • The amount of your monthly mortgage payment.
 • Then name of the county you live in.
 • The amount of your monthly car payment.

Once you have obtained your credit report you should review it carefully with two main goals in mind:

 1.To verify that the information is accurate, complete, and up-to-date.  This is especially important before you apply for a loan for a major purchase like a house or car, buy insurance, or even apply for a job.

 2.To guard against identity theft.  Identity thieves often use your information to open new credit card accounts in your name. Then, when they don’t pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job.

When ordering your credit report, it’s important that you start the request and not simply respond to or give personal information to an email or a pop-up ad or a phone call.  The consumer reporting companies (Experian, Equifax and TransUnion) or www.annualcreditreport.com will not send you an email asking for your personal information. If you get an email, see a pop-up ad, or get a phone call from someone claiming to be from annualcreditreport.com or any of the three nationwide consumer reporting companies, do not reply or click on any link in the message. It’s more than likely just a scam.

There is only one website that is authorized to fill orders for the free annual credit report you are entitled to – www.annualcreditreport.com. Other websites that claim to offer “free credit reports”, “free credit scores” or “free credit monitoring” are not part of the legally mandated free annual credit report program. In some cases, the “free” product comes with strings attached. For example, some sites sign you up for a supposedly “free” service that converts to one you have to pay for after a short trial period. If you don’t cancel during the trial period, you may be unwittingly agreeing to let the company start charging fees to your credit card.

I hope that your credit report will be pristine, but if you do find inaccurate information there are steps you can take to correct it.  Under the FCRA, both the consumer reporting company and the information provider (that is, the person, company, or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information in your report. To take full advantage of your rights under this law, contact both the consumer reporting company and the information provider.

 1.Tell the consumer reporting company, in writing, what information you think is inaccurate. Consumer reporting companies must investigate the items in question – usually within 30 days – unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to the organization that provided the information. After the information provider receives notice of a dispute from the consumer reporting company, it must investigate, review the relevant information, and report the results back to the consumer reporting company. If the information provider finds the disputed information is inaccurate, it must notify all three nationwide consumer reporting companies so they can correct the information in your file.

 When the investigation is complete, the consumer reporting company must give you the written results and a free copy of your report if the dispute results in a change. (This free report does not count as your annual free report.) If an item is changed or deleted, the consumer reporting company cannot put the disputed information back in your file unless the information provider verifies that it is accurate and complete. The consumer reporting company also must send you written notice that includes the name, address, and phone number of the information provider.

 2. Tell the creditor or other information provider in writing that you dispute an item. Many providers specify an address for disputes. If the provider reports the item to a consumer reporting company, it must include a notice of your dispute. In addition, if you are correct – that is, if the information is found to be inaccurate – the information provider may not report it again.

Except in rare circumstances, the only two things you should ever go in debt to buy are a house and a car.  These are both large-ticket items that most people could not afford to pay cash for, but are necessities that most can not do without.  Any other items should not be purchased unless you have the means on hand to pay for them.

If you look at what you spend your money on, just about everything can be classified into the following three categories:

Needs.  Each person’s individual needs are different.  If you have a family you have to consider their needs as well (kids clothing, school supplies, doctor’s visits, etc.).  The main thing is that you understand what your needs are and that you have the resources to meet those needs.  Anything that falls within the needs category should be able to be purchased with your regular weekly/monthly income.  The notable exception in this category is a house and car as stated above.  However, even though you need a house and a car, you don’t necessarily need to live in a mansion and drive a Mercedes.  Your needs still have to match your budget!

Wants.  Each person also has unique “wants” that motivate our lifestyle.  For some it’s taking vacations, for others its buying the latest electronic gadgets.  There is absolutely nothing wrong with wanting things, in fact it provides motivation to work hard to get them.  However, if you immediately go into debt just to be able to satisfy your wants then you need to reevaluate your priorities.  Most of the “wants” in your life can be obtained much easier if you are willing to plan ahead and save up for it.  You will end up enjoying that vacation or new TV much more if you’re not dreading the next credit card bill that’s going to reflect your latest impulse spending.  You also will end up paying less for it when you’re not having to make interest payments on top of the purchase price.     

Emergencies.  It’s very hard to plan for emergencies, because they are by definition unforeseen circumstances that usually require immediate action on your part.  To avoid having to go into debt to meet the emergencies that may come up in your life, you should always have an emergency fund set aside that is only used for real emergencies.  This doesn’t have to be a large sum of money.  In fact, $1,000 would probably cover most emergencies that you will encounter (appliance failure, car repairs, etc.).  Having this money set aside for these emergency situations will end up saving you a lot of money that you would end up paying in interest if you had to borrow the money on short notice.

We spend more on food each year (an average of $5,340) than on anything else besides our house and car. We don’t just walk into the nearest car dealership and pay full sticker price for a car, so why should we do that when buying groceries? We exhaustively research a house or car purchase, when spending just a little time planning our grocery shopping would actually save us more money.

“Americans have forgotten how to food-shop,” says Phil Lempert of SupermarketGuru.com, which tracks the industry. This generation has become more concerned with saving time than saving money.

Today households on average throw out 14% of the food they buy. Twenty years ago that number was only 7%. Compare this with our parents’ and grandparents’ generations, when time was spent each week planning menus so that nothing was ever wasted.

Today’s meal planning goes like this: It’s 4:00 p.m. and you haven’t thought about what’s for dinner. You try to think of something easy to make –- then stop by the grocery store on your way home for the ingredients. The next day it’s the same routine again.

However, with a little planning and understanding of how the grocery industry works you could easily save 15% or more on your grocery budget.

Grocery Industry
Most supermarkets are divided into 15 sections (from frozen foods to toiletries), and each week two of those sections are put on sale. So if you just buy what you need every week then you are overspending on 13 out of 15 categories. The smart shopper stocks up only on those items that are on sale each week (obviously there will always be some items that have to be bought on a weekly basis).

Grocery-store items typically follow a 12-week cycle — everything dips to its lowest price at some point during that time. The trick is to catch it at that low point, hopefully you can use a coupon to drop the price even lower, and then stock up! By following the trends, you can save hundreds of dollars each year.

Of course just because an item is in the store’s weekly sales flyer doesn’t mean it’s a good deal. In fact, about half the items in a typical weekly flier are actually on “phantom” sale. Many times the store doesn’t even drop the price of the advertised item, but people think that because it’s in the sales flyer it must be a good deal.

Planning
Manufacturers know that most people use the coupons they find in their Sunday paper right away. For that reason, you will rarely see a product on sale the same week that a coupon for that particular product is issued. By waiting a few weeks after the coupon has been issued, the product will likely go on sale giving you a sale discount in addition to a coupon discount. Getting a price reduction of some type in addition to the regular coupon is commonly referred to as “stacking” coupons.
To make the most of your coupons you need to:

• Hold onto coupons until the product you want also goes on sale.
• Check your local grocery store’s weekly flier to match your coupons with sale items.
•
Here are a couple of websites that can help you do this:

www.thegrocerygame.com
This subscription site provides you with a weekly list of products on sale at your local supermarket, cross-referenced with the coupons in your Sunday circulars. It then identifies which items are real deals and which are only phantom sales.

Cost: Four-week trial for $1; then $10 every eight weeks. (You can view the weekly Walgreen’s list for free)

www.couponmom.com
This free site provides a list of the advertised items on sale at your local grocery store. It then pairs them with any matching grocery coupons from your city’s Sunday newspaper that haven’t expired yet.

Cost: Free

Additional Tips
Here are some additional tips to help you save on your grocery bill:

Skip the Shortcuts – The premium on shortcut foods (marinated chicken breasts, cut vegetables, washed lettuce) is enormous, so compare prices of the prepared version and the normal version, and then decide whether the premium is worth the time you’ll save.

Make lists – Take the time to do a quick inventory of your kitchen to determine what you need. Half of us don’t make shopping lists. That’s why we buy bags of food, but have nothing for dinner. Before you shop, plan your next three dinners. That way you won’t buy something you’ll use half of and then shove to the back of the fridge to compost.

Choosing the Right Store – No single store has everything at the lowest prices. So in order to save the most money you may have to visit 2-3 different stores.

Eat First – Grocery stores know the power of the sweet smell of freshly baked bread; that’s why they put the bakery close to the entrance. Everything looks good when you’re hungry.

Coupons! – You could save hundreds of dollars a year by taking advantage of product incentives. Even the less enthusiastic coupon clipper can shave an average of ten percent off their bottom-line by cashing in a small handful of coupons each trip.

Store Brands – Companies have worked hard to improve their private-label brands and buying them can save you an average of 40 percent off your annual grocery bill.

Avoid Impulse Buying – Restricting spontaneous shopping trips is one of the best deterrents to impulse buying. A well thought-out shopping list that you stick to will help cut-down on grabbing for things that you do not need. In addition, giving yourself enough time to shop will help prevent dashing in and reaching for the first item that you come to.

Comparison Shopping – To determine the true value of a product, read the unit price, not just the package price. The package price only tells you the cost of the entire item. The unit price shows the cost per pound, ounce, etc.

Beware of Marketing Strategies – Avoid marketing ploys designed to draw your attention to a particular product. Knowing some of the tricks of the trade will ultimately save you money. For example, higher priced and impulse products are generally placed on the middle shelves, because that’s what people see most.

Watch the Scanner – Keeping your eyes peeled to the scanner has dual advantages. First, it will keep the cashier more alert. Secondly, it will allow you to catch any incorrectly priced items.

Your FICO score can range from 300 (atrocious) to 850 (perfection). Anything above 720 is usually considered good. The average American’s credit score is 678, although 11% have credit scores of 800 or above. Only 1% of the population can boast of a perfect 850 score.

Below are the 5 major areas which are evaluated in calculating your overall credit score and the weight given to that category:

1) Past payment history (35%). Your payment punctuality is the most critical of the factors that make up your credit score. The more recent your tardiness, the lower your score will be. A history of late payments on several accounts will cause more damage than late payments on a single account. Of course, you can greatly improve your overall score by paying your bills consistently on time.

2) Amounts owed (30%). Add up all of your outstanding balances and compare the number to the amount of credit that is available to you. If you are reaching — or exceeding — your credit limits, lenders will be less willing to lend you additional money. You also want to make sure that the credit extended to you isn’t out of proportion with your income. Interestingly enough, your score can be significantly affected depending on when you request it. You can add 20 points to your score the day after you pay your credit card bill (even if you pay in full every month).

3) Length of credit history (15%). Obviously, the longer your credit history, the more favorable lenders will see you. Your score in this area also takes into account how long it has been since you last used certain accounts. Just having an idle card for 10 years won’t necessarily raise your score. Don’t open a lot of new accounts at once to establish a credit history. That strategy will lower the “average account age” on your score, which could affect your score negatively. In order to get your score into the 800 range, you will need to have at least 10 years of positive credit history.

4) Amount of new credit (10%). Each time you apply for new credit, an inquiry shows up on your report. Red flags start waving when you take on more credit — or even just apply for new credit — in a short period of time. Future lenders do not take kindly to all this readily available credit. They’re afraid you will use it to go on a spending binge, thus quickly undermining standard calculations for determining how much additional debt you can shoulder.

When you shop for new credit (such as a home loan), try to do so in a concentrated period of time. FICO distinguishes a search for a single loan and requests for many new credit lines. (Requesting a copy of your own credit report does not affect your score.)

5) Types of credit (10%). Types of credit include credit cards, retail accounts, and installment loans (like car loans and mortgages). Though you may be tempted to show what a good borrower you are by using all types of credit, more is not always better in the eyes of credit scorers. If you have had no credit, lenders will consider you a higher risk than someone who has managed credit cards responsibly.

Here are the top factors that make your score lower:

1. Average balance of retail accounts is too high. High credit balances for revolving accounts (credit cards) and some installment accounts (mortgages and auto loans) are considered by lenders to be a negative factor when determining credit worthiness. High credit balances suggest a sense of living outside your means, which is a high risk for creditors if they are trying to gain repayment. In addition, never using your credit cards is also considered a negative factor because it does not provide lenders with enough information about your creditworthiness. Lenders evaluate how much you owe other creditors in relation to your income.
2. Length of time finance accounts have been established is too short. Open credit accounts over a long period of time are considered a positive factor by lenders, because sufficient credit history can be evaluated as to how you handle your financial responsibility. An optimal credit report will contain about 30 years of credit history. Credit reports with less than 3 years of history are considered not adequate.
3. Too many inquiries. An “inquiry” is noted on your credit report whenever you apply for new credit. The lender considering your application checks your credit history, which generates an inquiry. Although inquiries are considered common when applying for credit, lenders do not like to see many inquiries within a short period of time. This is because they don’t know if you are just searching for the best deal or if you are becoming financially unstable. It’s often best to limit your credit search to a small number of lenders when searching for the best offer.