I will make it easy on you. Here is the Golden Rule when receiving advice about your finances:

Never trust advice from someone who sells financial products.

That is a pretty easy one to remember, right? Let me explain why.

Let’s say you want to by a refrigerator. You have two options: you can either go straight to a company who makes refrigerators or you can go to somewhere like Sears. If you go to Maytag, a maker of refrigerators, and ask them “what is the best refrigerator?” Would you be surprised if they told you Maytag made the best refrigerators and that you should buy from them?

Or how about Sears. The person helping you there is a sales associate who gets paid on commission. You ask “what is the best refrigerator?” The response? Well, the most expensive one of course! Not because it is the best, but because if sold it gets him/her the best commission.

So why is it that people go to professional financial advisers when looking for financial advice? They will all try and convince you that cash value life insurance is the way to go. Why? Because if you get into that investment with them then they make the most in commission off you. If you want objective advice, you need to go to an objective source. When it comes to finance, these are usually free sources who are not trying to push a product on you and who do not sell financial products.

If you want advice on investments, get it from someone without any hidden interest into what investments you decide on. Free financial advice can be found all over the Internet, you just have to look for it. But remember, free advice is usually the best advice. And that is the best advice I can give you.

Can I help to answer the question? First, I can tell you what Grandma would most certainly not do. She would not have maxed out half a dozen credit cards getting frivolous things that she would probably end up selling for less on eBay. She would never spend more than she had. But here’s what she would do. She would look for coupons for all the purchases she knew she was going to have to make. She would really shop around for the best deal on items she needed. In essence, she was a smart shopper.

So why aren’t we smart shoppers today? Credit cards, buy now spend later mentalities, increased wages and a higher standar of living have certainly contributed to “dumb” shopping. Of course, our government hasn’t exactly been the best role model lately. George Bush nearly doubled the entire national debt to astronomical amounts. Everything the government purchases they buy with borrowed Chinese money. We have largely mirrored our government in fiscal irresponsibility.

So it’s time for a return to fiscal responsibility. It’s time to think, “What would Grandma do?” Let’s start being smart about our money. Let’s stay up to date on the news that could affect us and our finances. Let’s be smart and get serious about our finances. We just can’t afford not to.

Credit card companies said they are going to offer about 13 less credit cards to families each month. This is really a good sign on so many levels. First, the environment gets a boost. Credit card companies are going to be sending us less paper to turn around and throw away. Second, we consumers will stop getting so much junk mail, since so much of it is usually a credit card offer. Third, credit card companies will only look to offer cards to the most responsible borrowers rather than blanket all consumers as a whole. And lastly, this is bound to lower the number of new credit cards being purchased and put into circulation.

This is great news! The credit crunch and economic crisis aren’t going to go away by spending more money that we don’t have; it’s going away as we pay off our debts and start spending only that money that we have. You see, the whole premise of a credit card is a “have now, pay later” mentality. Unfortunately, people don’t just use them to have now what they can pay for later. They get what they want now when there’s no way they can pay for it later. A house for example. Look at all the foreclosures. Homes are purchases with loans which are offered on credit. See how much credit can hurt you?

What’s your best bet? Keep tearing up the credit card offers that are still bound to keep coming. At least they will come less often. But at any rate, throw them out. Don’t ruin your finances with a pointless credit card. Get one, have it for emergencies, and that’s it. The more we save and the less we spend the better this economy will be. Say no to more credit cards!

1. Air filter

It’s estimated that 1 in 4 cars needs their air filter changed. Dirty air filters can decrease mileage by as much as 10% so money can be saved by having a new, clean one. Change your filter at least once each year for optimum gas mileage.

2. Tire alignment

Poor alignment of your tires causes them to wear faster and causes your engine to work harder. Get your tires aligned at least once a year or suffer another 10% drop in mileage.

3. Tune up

Most car owners never even give their car a tune up. This is a big mistake, as time and wear can cause your engine to stop running optimally. Tune up your car when the manufacturer suggests and your car will last longer and run better.

4. Inflate your tires

Under inflated tires can cause you to lose as much as 3% on your gas mileage. Check your tire inflation every month and make sure your tires are inflated properly to save money at the pump.

5. Gas cap

I know, sounds trivial, but nearly 1 in 5 drivers have either a broken gas cap or none at hall. This can not only harm the evnrionment, it can do harm to your gas mileage as well. Replace any borken or missing gas caps always.

6. Drive the speed limit

Your car actually gets its best gas mileage when you drive about 55 mph. If you’re going 75 or 80 mph on the freeway, slow down, go the speed limit, you’ll save massively on gas mileage. The general rule is, wherever you are driving, you want your RPM’s to be as close to the 2 as possible.

7. Smooth driving

Hard stops and hard accelerations will absolutely kill your gas mileage. If you see a red light up ahead, don’t continue driving until it’s necessary to slow down and then hit the brakes. Simply let off the gas and you will start to slow down as you head towards the light. Then use your brakes to stop, but not to slow down. Always try and slow down by letting of the gas, not using your brakes. When you accelerate, try to avoid getting your RPM’s past the 3.

8. Remove extra weight

Every 100 pounds you add to the weight of the car will decrease fuel efficiency by 2% or more. Don’t drive around with heavy items in your trunk or backseat. Carry as little as possible in your car at all times.

9. Avoid idling

Your car never needs to “warm up,” so don’t sit in the car for a few minutes every morning letting it idle. Starting your car uses the same amount of gas as idling for 10 seconds. As a rule, if you know you will be stopped for longer than 10 seconds, just turn your car off. This also means avoiding the drive thru window.

10. Take the long way

This may sound counter intuitive, but some people prefer to drive on the main expressway with dozens of lights simply because it’s the more direct route to where they are going. If there is a “long way” so to speak, and it is more of a “country road,” then take it. You may feel like you are wasting time and gas, but in reality, it may be the same amount of time, and avoiding all that stop and go traffic will save a bundle at the pump.

These are some of the ways you can improve your driving to help save you some money on gas and on your car. There’s hundreds of other ways to save money, and I will continue to post about them as I’m able. It’s coming up on the end of the year, and that means taxes will soon be upon us. One great way to save money and time is to find a someone who offers free tax services. More on that to come later.

Be a strategic shopper

Most of us go grocery shopping once a week. We usually spend 30 minutes to an hour and spend around $50 – $100 each trip. For something that occupies that kind of time and resources, you would think we would be a bit smarter about it. Coupons.com is a great resource. there are plenty of other sites like them. Just spend half an hour finding coupons and planning your grocery trip and watch how much you will start to save. Thirty minutes each week in this kind of preparation can save you 25% on your grocery bill.

Skip Starbucks

You might be surprised how quickly $6 a morning adds up. Learn to go without that coffee and muffin. Substitute a granola bar and orange juice. These are also quick, easy and considerably cheaper. A half gallon of orange juice could last you a week, and it costs about the same as a cup of coffee. So before you run out the door to Starbucks in the morning on your way to work, sit down, eat a quick bite, and then go straight to work. This could save you almost $2,000 each year!

Upgrade appliances

Old refrigerators, washing machines and water heaters could be skyrocketing your energy bill each month. Upgrade old appliances around your home. New appliances will pay for themselves in a year when you see what you can save on energy.

Go generic

We’ve all been there. You’re standing in a store looking at a wall of products that are essentially all the same thing, except they are all different brands. Tide, or the store brand? Well, start going with the store brand. Typically, generic store brands are 25-33% less than the name brand products. Often times you won’t even notice a difference in your use of the product. Go generic, save money on the things you already buy.

One more dollar each day

Many of us are stuck with credit card debt. If you were to take one extra dollar each day towards paying off your credit card debt, you could be debt free two years sooner! The average debt, if paid off by the average monthly payment most people make, would take 96 months to be paid off. Add an extra dollar a day, or $30 each month to that monthly payment, and it’s paid off in 74 months. I’ve said this in an earlier post- get out of debt as soon as you can. Seems the CNN Money experts agree.

Sitter sharing

Those of us with children probably know the other parents in the neighborhood with children as well. Instead of everyone hiring their own babysitter, why not pool your resources? Hire one babysitter to watch all your kids when you go out for your date with your spouse. Families that do this save anywhere from 20-50% on their babysitter costs.

If you want to read more, check out the original article at CNN Money.

Step 1: Income

Review your pay stubs from the past 30 days. If you are on salary, just divide your salary by 12 and you have your monthly income. Add in any outside work you’ve done on the side. DO NOT add any expected gifts, as these are far from stable sources of income. Gifts should always go straight to savings anyway. In a column on the left side of a paper, write down all the sources of income in your family, then add them up and get a sum total for your income.

Step 2: Expenses

First, make a list of all essential living expenses. This should include house or rent payments, car payments, gas, electric, phone, water, and sewage bills and a food allowance. Next, write down how much each of these expenses are in a given month. Most of these bills and payments are roughly the same from month to month. Add up this column next to the income column. You should have a total that is hopefully less than the income column.

Step 3: Surplus

If you aren’t living in poverty then your essential living expenses should be less than your income. So what do you do with the surplus? First, take 50% of what’s left over and put it straight into savings. There is no question here- nothing is more important than having something put away for tough times. Next, take the other 50% and see what you’ve got. In my monthly budget its somewhere around $200. Doesn’t sound like much, but having that money to spend freely is a key to living a relaxed, happy, stress free lifestyle. My wife and I spend $25 each on discretionary allowance towards whatever we see fit. Another $50 goes for eating out. The rest is in entertainment, such as movies, video games, new board games, house parties, etc. If you have less than $200, don’t worry. just spend less on the fun things. What’s important is that for your own sanity you have something to spend on the fun things.

Optional Step: Credit Card Debt

Some of you may have outstanding credit card payments. That’s ok, you can still make a budget. Follow the first two steps exactly. Then, instead of saving 50%, use that to pay off outstanding debt on credit cards. Use more than 50% if necessary. Never make the minimum monthly payment if you can pay more. Get out of debt as soon as possible. Then, once out of debt, start paying yourself the money you were paying the credit card company. Do this in the form of savings. Instead of paying off the credit card, you are paying into a savings account that could help pay for your child’s college, a new car, etc. Debt is so draining that it’s more important to get out of debt immediately than to save money.

Step 4: Post, Follow, Evaluate. Repeat

Once you have created your monthly budget, post it in a conspicuous place where you can see it. Do everything in your power to spend exactly what you planned to in each category. At the end of the month, see how well you did by putting in the actual figures next to the numbers you came up with at the beginning of the month. Could you stick to it? Was it too much? Too little? Adjust if necessary and repeat for next month.

A monthly budget will get you on the road to financial discipline and success. Even if you’re making minimum wage and feel like you don’t make enough to need to worry about budget, get in the habit now. Good habits lead to good results.

The new bail out bill had one bright spot: a new FDIC deposit insurance of $250,000. What this means is very simple. If you have money in a bank in a savings account and that bank goes belly up, you have up to $250,000 insured by the FDIC. So even if the bank goes bankrupt, you will still get up to $250,000 of the money you had in the bank.

Now 95% of Americans make $250,000 or less each year, so it’s pretty safe to assume that most of us don’t have more than $250,000 in the bank or other investments. So here’s what you do: put your money in a savings account right now! The best money is safe money, and nothing is safer for most of us than a bank savings account right now. Even if all $200,000 we have in the bank is lost by the bank going bankrupt, we don’t lose anything, we will get back that $200,000 because it is FDIC insured. How’s that for certainty in uncertain times?

So sell your stocks, sell your investments, get all your money into one place- a safe place. That place is a bank savings account. Once the market has bottomed out and stops falling and begins to grow again, then take money out of your savings and start to buy investments and stocks again. But just as you hide in the basement during a tornado and come out again when the storm has passed, so must everyone safeguard their money in a savings account and wait out this financial storm. It will clear up- it always does. Even the Great Depression had an end. Be patient and the economy will get back on track. Once it does, buy up the investments that will be very cheap at that point and watch your money grow with the economy!