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For those of you looking to pay less for your next haircut, here are seven ways to save.

1. Cut Your Own Hair

If you’re a girl with long hair, you may be able to cut your hair yourself. Otherwise, don’t even bother. Walking around with a bad haircut is not cool.

2. Have a Friend or Family Member Cut Your Hair

If you know someone who knows what they’re doing, you can let them cut your hair for little or no money. However, unless that person is your parent or your spouse, you can’t keep doing this all the time. Eventually, you will need to go somewhere else and pay for your haircut like everyone else.

3. Discount Chain

There are chains like Supercuts, which generally charge less than full-service hair salons. Of course, for many of us, a discount chain like Supercuts is where we go to get our “regular” haircuts. Paying $15 to $25 for a hair cut may still be too much.

4. Coupons

Sometimes you can find coupons for a local hair salon in a mailer sent to your home. Unfortunately, most of us are too embarrassed to use them. It’s not really the same as using a coupon at your local electronics store. There’s much more personal interaction involved. Also, you can’t find these coupons all the time. And even if you did, do you really want the hair dressers to remember you as the person who always uses coupons?

5. Beauty school

If you want a really nice haircut (incl. color, highlights, perm, etc.) but you can’t afford to pay more than $20, you should consider having your hair done at a beauty school like Paul Mitchell. Such schools can be found in every major city. The students are usually supervised, so you don’t really have to be concerned.

6. Hair Salon in Asian Neighborhood (Chinatown, Little Saigon, K-Town, etc.)

If you’re looking for a $10 haircut, check out your local Chinatown or other Asian neighborhood. The person cutting your hair may or may not speak English very well, but you will get a decent haircut for very little money.

7. Hair Salon Near Military Base

Hair salons catering to military personnel can be found near most bases and are another cheap alternative. Since the hair salon is located off-base, you don’t have to be military yourself to get your haircut. However, since their customers are usually men, it may not be the best place for women to get their hair cut. The hair dressers may simply not have enough experience cutting women’s hair.

Photo Credit: Malias

Why Should I Be Part of a TV Audience?

Being part of a TV audience can be a lot of fun. You get to be up close to your favorite stars. In addition, most studios provide free entertainment, refreshments and souvenirs to audience members. Oh, and of course, it’s completely free. You don’t have to pay a single dime to be an audience member.

How Do I Get In?

It’s easy to get free tickets online. The major studios use a number of outlets to distribute their tickets to the public. The two biggest players are tvtickets.com and tvtix.com.

These two distributors allow you to reserve and print your tickets online. If tickets aren’t available immediately, they may call you once they are available. Note that tickets to popular shows can sell out as early as a month in advance. You will need to plan your visit early.

If they don’t have tickets for the show you want, try visiting the show’s website. Some shows issue tickets themselves or have made arrangements with other distributors.

What Can I Expect on the Day of the Taping?

You should arrive at least an hour before the taping starts. Expect to wait in a long line. Many shows deliberately accept more reservations that they can possibly accommodate. They want to make sure they will still have a full audience even if some people don’t show up. If you want to get in, you should get there early. Everything is first come, first served. If you can’t get in the show you came for, they will offer to seat you for another show or they will give you VIP reservations for another time.

Once you get to the front of the line, you will be escorted along with other audience members to the studio where the taping takes place. The audience members are separated into several groups. Some shows single out well-dressed or attractive people and assign them to the front rows. If you want to have a front-row seat, dress up and look sharp.

Once you’re in the studio, there will usually be someone to entertain you during breaks and to make sure you applaud like you’re really enjoying the show. The kind of entertainment that you will experience depends on the show. Everyone hires their own entertainers.

I remember I was once at a taping of Two and Half Men. The guy who was there to entertain us was actually a professional clown. He wasn’t dressed as one, but the stuff he pulled was just amazing. At one point, he actually balanced a bicycle on his chin. It was hilarious.

Of course, not all TV tapings are that much fun. One time my girlfriend made me take her to a taping of the Tyra Banks Show. The topic of the day was The Real Brokeback Mountain. The movie Brokeback Mountain was making headlines at the time, so the show found a couple of real gay cowboys who had fallen in love with each other. Now all of this wouldn’t have been so bad if it wasn’t for one thing. Everything seemed incredibly staged. There were frequent breaks and whenever the tape stopped rolling, the people on stage suddenly became a lot less emotional and more detached.

Photo Credit: Mike Babcock

Most states don’t charge sales tax when you purchase unprepared food from the grocery story.

States with No Sales Tax on Food

California, Colorado, Connecticut, Delaware, Florida, Indiana, Iowa, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Washington, Wisconsin, Wyoming and the District of Columbia.

States with Reduced Sales Tax on Food

Some states levy sales tax on food but the tax is lower than the general sales tax. Such states include Arkansas, Georgia, Illinois, Missouri, Tennessee, Utah, Virginia, and West Virginia.

States with Sales Tax Credits or Rebates

Five states (i.e. Hawaii, Idaho, Kansas, Oklahoma, South Dakota, and Wyoming) tax food purchases fully but offer tax credits or rebates. These can be claimed by low income households but are generally not enough to compensate fully for their expenses.

States with Sales Tax on Food and no Tax Credits or Rebates

There are only two states that levy the full sales on food purchases without providing any type of tax relief: Alabama and Mississippi.

Local Sales Tax on Food

Just because the state government won’t levy a sales tax on food doesn’t mean you local government won’t do either. This is true in Alaska, Colorado, Louisiana and North Carolina.

Special Cases

States that don’t levy sales tax on unprepared food at grocery stores often don’t charge sales tax on food purchased elsewhere either.

Sandwich Sales

Sandwich places like Subway may or may not charge sales tax depending on how you choose to consume your sandwich. The exact rules on this vary from state to state. But in general, when ordered for take-out, cold sandwiches are not subject to sales tax. When you eat in, however, you are charged sales tax. And when you buy a hot sandwich, you are charged sales tax no matter what. (That’s another reason why a place like Quizno’s, famous for its oven-roasted sandwiches, will always be more expensive than a place that sells cold sandwiches.)

Photo Credit: Simon Shek

Photoshop is the number one photo editing software and has been for many years, but that doesn’t mean you should actually buy it. Unless you’re a professional photographer, it’s unlikely you will ever be able to use the most advanced features that Photoshop has to offer. You’re basically paying extra for features you will never use.

Instead you may want to take a look at GIMP, a free photo-editing software that has become so popular in recent years that it is now the top competitor to Photoshop. If you just want to retouch your photos, there’s practically nothing that Photoshop can do that GIMP can’t. It’s open source software that gets constantly updated.

If you’re familiar with Photoshop, you will have an easy time with GIMP. Many of the tools and editing techniques that are available in Photoshop are also available in GIMP. In fact, if you are accustomed to the Photoshop interface and don’t feel too comfortable with the standard Gimp interface, you can try out GIMPshop, which is GIMP customized to look like Photoshop.

In addition, there are plenty of fun GIMP video tutorials (e.g. Whiten Your Teeth, Airbrush Your Skin, Sepia Toning, Change Eye and Hair Color, Change Face, etc.) on YouTube and elsewhere

You can find more on the Official GIMP Tutorials page.

If you have something specific in mind and you can’t find it either on YouTube or on the Official GIMP Tutorials page, just do a Google search. You’ll be surprised how much help you can get for this program. There are millions of users.

Another advantage of GIMP for most home users is the fact that it won’t hog too much of your computer’s memory like Photoshop does. The installation is also relatively small. The download file is just 15MB. Compare that to a Photoshop installation, which is several hundred megabytes.

If you don’t have group-based health insurance such as the one typically provided by your employer, you may be shopping for individual or family health insurance. To make an informed decision, you need to understand the different kinds of options available to you.

Part I: Types of Individual/Family Health Insurance Plans

Traditional Health Insurance Plans

Indemnity Plan / Fee-for-Service Plan / Major Medical Health Plan

Health insurance used to be very much like any car insurance today. You paid your premiums and in exchange you were covered for any amount above your deductible. This type of health insurance is known as an indemnity plan. Today it is also known as fee-for-service insurance or major medical health insurance.

Under a traditional plan, you can go to any doctor or hospital you want anytime. Your insurance coverage is the same everywhere. Unfortunately, you will have to pay more for this degree of flexibility. Traditional plans are the most expensive type of health insurance.

As the cost of medical care has risen rapidly over the last few decades, health insurance providers have turned to managed care plans in order to lower their expenses.

Managed Care Health Insurance Plans

These days, the majority of people with private health insurance are covered by a managed care plan. The three most common types of managed care include HMO, PPO, and POS plans. In addition to these long-term plans, there are also short -term health insurance plans.

Health Maintenance Organization (HMO)

A Health Maintenance Organization (HMO) is a network of hospitals, doctors, labs, etc. that have agreed to charge lower fees to HMO members. These lower rates come at a price. As an HMO member you are assigned a primary care physician (PCP), who acts as a gatekeeper. Unless you have an emergency, you have to see your PCP first for all your medical care needs. If they think you need a specialist, they will refer you to a specialist within the HMO network. Note that the HMO will not reimburse you for visits to doctors outside of their network.

Preferred Provider Organization (PPO)

With a Preferred Provider Organization (PPO), you are not required to choose a primary care physician (PCP), and you don’t need a PCP referral when you need to see a specialist. You can see any specialist you choose. However, this added flexibility comes with higher costs. Most PPPs require higher copayments or coinsurance and often require you to pay a deductible before they start paying for any of your expenses. At the same time, the PPO also provides a financial incentive for you to stay within their network. The PPO has contracts with healthcare providers to charge lower fees for their services. When you go out of that network, you typically have to pay more. For example, your co-pay may be $50 instead of $30. In addition, an out-of-network doctor may require you to pay the entire bill up front. You will then have to submit paperwork to the PPO in order to get reimbursed. Consequently, most people who are covered by a PPO stick with in-network doctors.

Point-of-Service (POS)

A Point-of-Service plan is a like a cross between a PPO and an HMO. It is similar to a PPO in that it offers you the flexibility to choose between in-network and out-of-network providers. However, similar to an HMO, you are assigned a primary care physician (PCP). If you want to see a specialist, you will need a referral from your PCP. Your PCP is likely to refer you to an in-network doctor. If you insist on seeing an out-of-network doctor, you will have to complete more paperwork and accept a much smaller reimbursement from your insurance. In line with its relative flexibility, the cost of a POS is usually between that of an HMO and a PPO.

Part II: Long-Term Plans vs. Short-Term Plans

Most people opt for long-term health insurance, which allows you to renew your plan every year as long as you keep paying your premiums. This is to your advantage because your insurance company won’t just be able to cancel your insurance on you just because they feel you are costing them too much. At the same time, this added risk is priced into the premiums that long-term plan members have to pay.

With short-term plans, on the other hand, this risk is significantly reduced. The chance that you could fall sick within a short period is minimal and thus the cost of insurance is lower too. Short-term plans are usually for 6 months. Many of these plans give you the option of renewing your policy for up to 36 months, but each new plan is considered to be a completely new policy. Most short-term plans are either PPOs or indemnity plans. They allow you to see any health care provider you like but come with deductible and coinsurance terms.

The major disadvantage of a short-term plan is the risk that you may not be able to renew it and end up without coverage. This can happen easier than you think. If you are diagnosed with a medical condition, they may consider that to be a preexisting condition and deny you coverage when you try to renew your policy less than six months later.

Nevertheless, if you lost your employer-based healthcare and you can’t afford a long-term plan, then a cheap short-term plan may be your only option. If you have a preexisting condition such as diabetes, you need to make sure that you keep some sort of health insurance until you find another job at which point you can re-enroll in your employer-based group plan. Because of the Health Insurance Portability and Accountability Act (HIPAA), your new employer-based group will usually have to accept you despite your preexisting condition. However, you lose this important protection if you are without health insurance for more than 63 days in the preceding 12 months.

Part III: Important Terminology

Deductible

A deductible is a specific dollar amount that your health insurance requires you to pay each year out of your own pocket before they start paying for any of your medical expenses. As a general rule, most HMOs do not require a deductible while traditional health insurance, PPOs, and POS plans do.

Coinsurance

Co-insurance is a cost-sharing requirement between you and your health insurance. After you have fully paid your annual deductible, you also have to pay a share of the remaining costs of your medical care. Your share is expressed as a percentage. For example, when you’re coinsurance is 20%, you pay 20% and your insurance will pay for 80% of the covered medical expenses. The amount of covered medical expenses you have to pay for yourself is limited only by your out-of-pocket limit for the year.

Out-of-pocket limit

The out-of-pocket limit is the maximum amount you will have to pay each year for covered medical expenses. The out-of-pocket limit takes into account your deductible as well as your coinsurance payments.

Lifetime maximum

A lifetime maximum is the maximum amount your insurance will pay for expenses during your lifetime.

Copayment

Some plans require a copayment, or copay, which means you pay a flat fee for each medical service and your insurance will pay for the rest. For example, a co-pay arrangement may require you to pay $20 for each office visit or $50 for a hospital stay.

Medically necessary treatments or services

Your health insurance will only cover medical expenses for treatments or services that are deemed medically necessary. For example, they may deny payment for treatments that are considered cosmetic.

Reasonable and customary charges

Your health insurance will only pay what it considers reasonable and customer charges.

Preexisting conditions

A health insurance will not pay for health problems that were diagnosed before the effective date of the insurance. If you have job-based coverage, you may be excluded from coverage only for a limited time such as a year. If you’re on an individual or family plan, your options are much more limited. In fact, you may be unable to get health insurance because of your preexisting condition.

Part IV: How to Shop for Health Insurance

1. COBRA. Employer-based group-based coverage is cheaper than individual/family plans. If you lost your employer-based coverage because you lost your job, the Consolidated Omnibus Budget Reconciliation Act (COBRA) allows you to stay enrolled in that plan for up to 18 months. Although you will have to pay the full premium, including the portion previously paid for by your employer, it will still be cheaper than getting similar coverage under an individual policy.

2. Decide on a type of plan. Decide what kind of plan you want: HMO, PPP, POS, or short-term health insurance.

3. Compare multiple insurance plans. Find out about the various types of plans offered by at least five different insurance companies. Aetna, Kaiser, Blue Cross, and Blue Shield are among the insurance providers that can be found in almost every state. You can visit their websites to view the plans they offer. In most cases, you can even request to have a brochure mailed to your home. In addition, U.S. News & World Report publishes a list of the best commercial health plans, which you can use to find more reputable health plans. When you compare the policies, you will need to weigh the monthly premiums they charge vs. any deductibles, coinsurance, copayment, and out-of-pocket requirements. Also, ask for how long the premiums are guaranteed. You don’t want to fall for an introductory offer.

4. Beware of fake insurance. In your search for the cheapest policy out there, you may fall victim to a company selling fake health insurance. It’s more common that you think. Be sure to check the website of the National Association of Insurance Commissioners for a list of licensed insurance companies.

Photo Credit: Frenkieb

The lessons of unit pricing also apply to toilet paper. When you compare different rolls of toilet paper, don’t just focus on the total price. Ask yourself how much toilet paper you’re really getting for that price. Don’t just go by the number of rolls in a pack.

One way to get the unit price is to find out the total number of sheets in a pack. Then divide the total price by the number of sheets. This will give you the price per sheet. Alternatively, you could use the sq. ft. number that is printed on the pack and divide the total price by that instead, which will give you the price per sq.ft.

If you’re lucky, the unit price will already be printed on the shelf tag, so keep your eyes open for that.

Once you know the unit prices of two items, you can compare them more easily no matter what size of packaging they come in.

You’ll be surprised how often items sold in bulk packaging turn out to be more expensive than those sold in smaller packaging and lesser brands sell for more than better brands.

Photo Credit: PowerBookTrance

The 3000 miles / 3 months oil change rule has got to be one of the most successful automotive scams ever. Don’t fall for it and save money.

If there’s anything most of know about auto maintenance, then it’s the notion that we are supposed to have an oil change every 3000 miles or 3 months, whichever comes earlier. If you fail to get your oil change within the prescribed interval, then your car will break down pretty soon.

At least, that is what the oil change industry would have you believe. But just because they can put a little sticker on your windshield and tell you to come back in 3 months, does that mean you actually should?

It turns out the 3000 miles / 3 months oil change is just a myth promoted by the oil change industry. Of course, they would like you to have more oil changes than you really need because that just means more money in their pockets.

The yardstick they are using might have had a scientific basis forty years ago but certainly not now given all the advances in motor oil quality.

In its December 2006 issue, Consumer Reports had the following to say:

“Although oil companies and quick-lube shops like to promote this idea [that engine oil should be changed every 3,000 miles], it’s usually not necessary. Go by the recommended oil-change schedule in your vehicle’s owner’s manual. Most vehicles driven under normal conditions can go 7,500 miles or more between oil changes. Some models now come with a monitoring system that alerts the driver when the oil needs changing. Depending on driving conditions, these can extend change intervals to 10,000 or 15,000 miles.”

Consumer Reports recommends the recommended oil-change schedule in your owner’s manual. There’s no reason to think the schedule in your manual is less strict than it should be. If anything, it’s safe to assume that the manufacturer’s recommended oil-change schedule is going to be overly conservative in order to shield the manufacturer from potential lawsuits.

Photo Credit: modenadude

Replacing tires can be expensive. Be sure to read these tips in order to get the best deal.

1. Determine the right size. Check your auto manual to find the recommended size for your vehicle. Unless you have changed wheels, that’s the number you should go by. You can also check your current tires. The tire size (e.g. P225/50R16) is written on the sidewall of the tire. Depending on the type of car you drive, it will optionally begin with P (for passenger car), LT (for light truck), T (for temporary spare) or T (for special trailer). The three-digit number after the letter indicates the section width of the tire in millimeters. The number after the slash is the sidewall aspect ratio. If it is missing, it is assumed to be 82. If it is larger than 200, then it refers to the diameter of the tire. The letter after that refers to the internal construction type of the tire and can be either R (for radial tires) , D (for diagonal or bias-ply tires), or B (for belted tires). Most tires today are radial tires. The last number is the diameter of the wheel that the tire is designed to fit.

2. Don’t buy old tires. Be sure to check the manufacturing date. Some retailers sell tires that were manufactured ten years ago but still claim they’re new just because they’re not used. You can check the manufacturing date yourself. The sidewall of every tire lists not only the tire size and proper inflation but also the code that tells you the year the tire was made. The code is found at the end of the line starting with DOT and is four digits long. The first two digits tell you the week of the year and the last two digits the year itself. For example, the code 4608 indicates the tire was manufactured in the 46^th week of 2008.

3. Don’t buy used tires. You can’t really be sure about the condition of the tires. It’s not worth risking your safety just to save a few bucks. And if the tires are worn unevenly, you are ultimately going to spend more on gas. Sooner than later, you’ll have to buy new tires again.

4. Buy a good brand. You want a quality tire and a brand name gives you at least some assurance of quality. This is not just a safety issue. You want your tires to last as long as possible. Every new tire comes advertised with its estimated mileage. With a brand name, you know there’s a company standing behind that promise and that company won’t be gone anytime soon.

5. Don’t make too much of warranties. It’s important to realize that tire warranties are limited warranties and warranty claims rarely succeed. The warranty is void if the damage to your tire resulted from “road hazard”, which can mean a lot of things. Normal wear and tear is not covered either. Even if you have good cause, filing a claim can be quite a hassle. In order to submit a claim, you will have to provide proof of purchase and the original mileage and also show that you maintained the tires properly. Proper tire maintenance includes inflating, rotating, and aligning the tires properly and replacing worn suspension components. Don’t choose one tire over another just because it has a slightly longer warranty.

6. Match the tires to your climate. Do you need summer tires, winter tires, or all-season tires? If you live in a rainy region, make sure you buy a tire with a high traction grade. Tire traction is rated AA, A, B, or C with AA being at the top of the scale. If you live in a warm region, you should take heat resistance into consideration as well. The temperature grades, from highest to lowest, are A, B, and C.

7. Match the tires to your mileage. The number of miles you put on the car is important because your new tires should last at least a couple of years. You don’t want to be buying new tires all the time. If you only drive as little as 8,000 miles a year, then a tire that will last 24,000 miles may be fine but if you drive more than 12,000 miles a year, then the tires will wear out in a couple of years, maybe even earlier than that depending on how you drive and how you maintain your tires. Treadwear grades are another useful indicator, at least within a manufacturer’s own line of tires, as tires with higher treadwear grades are expected to last longer. Unfortunately, manufacturers tend to overstate the expected treadwear of their tires. A Michelin tire with a treadwear grade of 300 may be comparable to a Goodyear tire with a treadwear grade of 340.

8. Match the tires to your load. Is your car often fully loaded or do you usually carry just a passenger or two? Tires can differ in their load carrying capacities. A tire with a higher load index has a higher carrying capacity. The load index of the tire can be found right after the tire size on the sidewall of the tire (e.g. P225/50R16 91) and can range anywhere from 71 to 110 for most passenger cars and light trucks. Here’s a list of different load indexes and their corresponding carrying capacities: 71-761lbs, 72-783lbs, 73-805lbs, 74-827lbs, 75-853lbs, 76-882lbs, 77-908lbs, 78-937lbs, 79-963lbs, 80-992lbs, 81-1019lbs, 82-1047lbs, 83-1074lbs, 84-1102lbs, 85-1135lbs, 86-1168lbs, 87-1201lbs, 88-1235lbs, 89-1279lbs, 90-1323lbs, 91-1356lbs, 92-1389lbs, 93-1433lbs, 94-1477lbs, 95-1521lbs, 96-1565lbs, 97-1609lbs, 98-1653lbs, 99-1709lbs, 100-1764lbs, 101-1819lbs, 102-1874lbs, 103-1929lbs, 104-1984lbs, 105-2039lbs, 106-2094lbs, 107-2149lbs, 108-2205lbs, 109-2271lbs, 110-2337lbs.

9. Match the tires to your speed. Do you drive mostly low speeds around town or high speeds on the freeway? Check the speed rating of the tire. The speed rating is the number that follow the load index on the sidewall of a tire (e.g. P225/50R16 91S). The speed rating indicates the maximum speed the tire can sustain for ten minutes straight without risk of damage. Don’t pay extra for tires with high speed ratings. Realistically, you’re never going to drive over 100mph, so there’s no need to pay more to get a tire with such a speed rating. Here’s a list of the most common speed ratings along with their corresponding maximum speeds: M-81mph, N-87mph, O-93mph, P-99mph, Q-106mph, R-112mph, S-118mph, T-mph, U-124mph, H-130mph, and V-149mph.

10. Comparison shop. Stores like PepBoys, Discount Tires, and Costco are always a good bet. Use cost per mile to compare prices. Divide the price of the tire by its expected mileage. For example, a $100 tire that lasts 45,000 miles will have a cost per mile of around 0.2 cents. A $60 tire that lasts 20,000 miles will cost 0.3 cents per mile. Do the math. The $100 tire is a better value. Everything else the same, you will want the tire with the lower cost per mile.

11. Factor in the cost of labor. You may be surprised how much the installation cost of tires can vary. Some stores will put on your new tires for free while others may charge you as much as $30. Realize that some stores such as Sears may have low tire prices too but charge more for labor.

12. Get a price match. Most retailers will match tire prices, but you will need to present a quote from their competitor. Be sure to take into account the cost of installation, which is not part of the price match. Even if one store charges less for its tires, you may find getting the tires from a competitor may still be cheaper.

Photo Credit: modenadude

Everyone’s talking about them: compact fluorescent light bulbs (CLFs).

Surprisingly, though, so many people that would really benefit from using them don’t have them.

If you have friends or family who still use incandescent light bulbs, you may want to share with them the following facts about CFLs.

Lower Energy Costs

The primary advantage of CFL bulbs is their energy savings. For one, they are cheaper to operate. They consume 75% less energy than standard incandescent light bulbs.

Another benefit of CFL bulbs is the fact that they produce less heat, which helps lower cooling costs during those hot summer nights.

Needless to say, your electricity bill is going to be a lot less with CFL bulbs.

Longer Life Span

Notwithstanding the lower energy costs, some people balk at the higher out-of-the pocket cost of a CFL bulb. Keep in mind, though, that although a CFL bulb is usually more expensive to buy than an incandescent bulb, it more than makes up for that added cost with its longer life span. That’s because the average CFL bulb lasts ten times longer than the average incandescent light bulb. The fair comparison would be one CLF bulb and ten incandescent light bulb. When you compare the cost of a single CFL bulb with the total cost of ten incandescent light bulbs, the CFL bulb is guaranteed to emerge as the cheaper alternative.

Photo Credit: Paul Keller

Habitat for Humanity is a non-profit organization that provides assistance to low-income first-time homebuyers. If you meet their criteria, they will sell you a house at no profit and provide you with an interest-free mortgage. Their generosity is made possible with the help of numerous donors and volunteers who help build the house for you. However, the program does come with certain restrictions.

For one, you have to be on a low-income to qualify for a Habitat home. Note that Habitat for Humanity income guidelines tend to be more stringent than those of governmental first-time homebuyer programs. For example, in most areas, the maximum income for a two-member household is around $30,000 whereas some government programs have thresholds as high as $50,000 in certain areas. However, if you do qualify for a Habitat home, the savings will almost certainly be much greater than under any government program alone. In general, with Habit for Humanity, the cost of both the home and the loan to finance the purchase will be lower. In addition, you may still be able to take advantage of certain government tax credits and rebates on top of that.

As you might expect, the Habitat for Humanity program is extremely popular among first-time homebuyers on low incomes. Given the high demand and the limited supply of Habitat homes, the selection process is quite rigorous in order to ensure that only the most qualified candidates are accepted into the program. The process includes a review of your work history, credit history, family size, and economic need. You also have to show a willingness to become a full partner with Habitat for Humanity. You are expected to put several hundred hours of work, or “sweat equity”, into your own home or the home of another Habitat buyer within a year of signing the partnership agreement.

Habitat for Humanity has local chapters across the country. Each chapter has its own selection criteria and application process. Click here to find a local chapter near you. You can view additional details and download an application from the chapter website.

Photo Credit: First Baptist Church Nashville

There’s no reason to pay your bank an arm and a leg just to get new checks.

Many people are surprised to learn that you don’t have to order checks through your bank. There are a number of private companies that will print your checks and mail them to you for a lot less than your bank is charging you.

Of course, you have to be extremely careful. You don’t want your personal information to fall in the wrong hands. That’s why it’s important to work with reputable companies.

Three such companies include Costco, Walmart, and Sam’s Club. The savings can be 50% off or more of what you’d usually have to pay at a bank. Conveniently, they all allow you to order your checks online.

If your insurance won’t cover it, buying prescription glasses can be expensive. Even discount places such as JC Penney routinely charge $100 or more for glasses. That doesn’t mean there aren’t cheaper alternatives.

The reason why the glasses are so expensive is not that they are expensive to make. It’s all the overhead that goes into running an eyeglass store. There’s monthly rent, utilities, and the salaries of employees that all have to be priced in to the sales price of your glasses.

Nevertheless, there’s a way to get quality glasses for a fraction of the price you have to pay in stores like Lenscrafters. I’m, of course, talking about online vendors such as Zenni Optical and FramesDirect.

To order your glasses online, you just need your current prescription and your measurements. If you don’t know your measurements, you can find out easily. The sites will tell you how to get that information. Everything else is easy.

Zenni Optical

My personal favorite is Zenni Optical. Their prices start at just $8. We’re talking about $8 for prescription glasses that come with anti-scratch coating, UV protection and lens edge polishing and beveling. At this price, you can go through many different designs. In addition to their basic $8 single vision eyeglasses, you can also get bifocal eyeglasses, progressive eyeglasses and upgraded features like anti-reflective coating, sunglass color tinting and even premium photochromic lenses (clear indoors, dark outdoors in sunlight). Although they don’t offer designer classes, many of their glasses resemble designer classes. In fact, I suspect they are even manufactured in the same factories in China.

FramesDirect

There’s really just one thing that’s noteworthy about FramesDirect. And that’s the fact that they also offer designer glasses like Dolce & Gabbana, Gucci, Armani, DKNY, and Hugo Boss. This is something you can’t get from Zenni Optical. The savings relative to local eyeglass stores are not going to be as spectacular as they are with Zenni Optical but they are still considerable.

Photo Credit: mollybob

Car salesmen have a bad reputation - and deservedly so. Learn about the tricks they use to make you pay more than you have to, so you won’t fall victim to them.

1. Pretending they’re your friend. A salesperson will try to gain your trust by pretending they’re your friend. They know the more you can relate to them and think of them as a friend, the more difficult it will be for you to say no.

2. Pretending they’re on your side. A salesperson will often pretend they’re trying to get you the lowest possible price. They will tell you their sales manager has to approve everything but they will do their best to get you the best possible deal. Only the first part of that statement is true. In fact, the salesperson wants you to pay as much as possible because the more you pay, the more commission they will get. Contrary to what you may be led to believe, the salesperson is not risking their job for you at all when they talk to their manager. What’s more, the salesperson will try to coax you into a commitment by using a line like this: “If I could, would you buy this car today?” Just tell him you will buy the car today if you like the deal you’re getting.

3. Making you feel guilty. Another reason not to get too close to a salesperson. If they think you’re a nice guy, they may try playing the guilt car. They can’t afford to lose the sale because if they do they can’t get commission or might even get fired. Of course, that’s too bad because they have children in college, are getting married soon, or have a pregnant wife at home. Don’t ever feel like you need to buy a car out of pity for the salesperson. You’re not a charity. You’re there to buy a car for yourself. Plus, chances are the salesperson is lying to you anyway.

4. Limited time offer. Sometimes the salesperson will pressure you to buy the car the same day because of a special promotion. They will tell you that prices will go up again once the promotion ends. Don’t believe a word they say. Lucky for you, there is always a special sale going on at car dealerships. You can tell just by watching car commercials.

5. Affordable monthly payment. Instead of focusing on the price of the car, most dealers will try to talk about the monthly payment instead. They make it seem like that’s the most important thing you should care about. But is it monthly payments for 3 years, 4 years, 5 years, or longer? Needless to say, the more monthly payments you need to make, the greater the cost of the car will be. By getting you to focus on the monthly payment, the salesperson is trying to distract from more important things - like the price of the car.

6. Misplaced items. Be careful about leaving anything in the care of the dealership. It will take you a long time to get it back. By pretending they misplaced your item, the salesperson gets more time to continue pressuring you to buy the car. Sometimes you may not even have a choice. For example, the salesman may ask for your driver license to look up your record or your car keys so they can check out your trade-in. When you tell them you want to leave, don’t be surprised if they can’t find it right away. They will do everything they can to keep you there as long as possible.

7. Keeping you waiting. You would think a salesperson wants try to close the deal as quickly as possible. However, to get the best deal, they will also try to wear you out. The more tired and impatient you are, the more likely you are to give in to their terms to get it all over with. Typically, the salesperson will leave more than once to talk to their sales manager and take several minutes before they return.

8. Allowing you to take the car home for the night. This may seem like the dealer is doing you a favor. Actually, they just want you to get attached to the car.

9. Bait and switch. Car dealerships will do anything to get you to come to their dealership. They advertise amazing bargains but when you get there they’re already sold out because only one car was available at that price in the first place or the car turns out to have defects that were left out in the original advertisement. Similarly, you may be told they have a great deal waiting for you when you’re on the phone with them. Once you’re at the dealership, they get you to take a look at other cars.

10. Lowballing. If the salesperson knows you’ll be shopping around, they may quote you an incredibly low price to get you to come back again. They’ll know you won’t make a decision until after you have visited all the dealerships on your list. Of course, when you do return, that deal will no longer be available for whatever reason. You, on the other hand, are tired and worn out. That’s the kind of customer they want to be negotiating with.

11. Making up numbers. Car salesmen rarely use even numbers. Instead, they rely on odd numbers to make you think there was a scientific way they arrived at the dollar amount they’re quoting you, e.g. the monthly payment turns out to be $513 instead of $500.

12. Upselling. A salesperson will want to sell you the most expensive car you can possibly get because that gives them the most commission. When they ask you how much you want to pay for a car or how much you want your monthly payment to be, they’re usually just setting you up for the next question: “Up to?” Your answer to this question will let them know how much you’re really able to afford. That’s what they’ll be going by.

13. Four squares. Most sales negotiations will center on the “four squares”. The salesperson will use a sheet divided into four boxes: trade-in value, purchase price of car, down payment, and monthly payment. They will haggle with you over all four boxes. When they find out your “hot button” (e.g. you insist on a certain price for your trade-in), they might just give it to you to make you feel but then rip you off somewhere else.

14. Last minute changes. Sometimes the salesperson will give you the impression that you have reached a deal. Everything seems fine. You’re ready to sign the papers. Then, suddenly, there’s a change. You’re told that for some reason you will get less for your trade-in; or you have to pay slightly more for your monthly payment, etc. Even a seemingly minor change can cost you a lot more than you think. For example, a $20 increase in your monthly payment means you’ll end up paying $1200 more over a five-year term. They’re hoping you’re tired enough at this point not to give it too much thought.

15. Not telling you everything. Used car salesmen are especially good at this. Instead of lying to you, they’ll just conceal anything that might make you walk away from the deal. As long as you don’t ask, there’s no need for them to be upfront. If it comes out eventually, you might be so tired by that time that you just don’t know what to do about it and accept it.

16. Inspection. The fact that their mechanics inspected the car inside and out should be of no value to you. Those mechanics don’t work for you. They work for the dealership and if the dealership wants some sort of certification so that the car that can be sold more easily, they’ll get one.

Part 1 - Car Sales: Tricks of the Trade

Part 2 - How to Buy A New Car

Part 3 - How to Buy A Used Car

Photo Credit: Vagawi

No matter what kind of kind you are buying - used or new, it pays to be prepared. In this series of articles I will show you how.

Part 1 - Car Sales: Tricks of the Trade

Part 2 - How to Buy A New Car

Part 3 - How to Buy A Used Car

Photo Credit: Viernest

Everyone knows you’re not supposed to pay sticker price for a new car. The final sales price ultimately depends on your negotiating skills. You’ll be facing off against an experienced salesman. Don’t go unprepared.

1. Beware of common sales tricks. Read Car Sales: Trick of the Trade.

2. Get preapproved. Unless you’re going to pay cash, make sure you get financing from your bank or credit union before you even step into the dealership. Often the salesman will give you a break on the sales price of the car but then rip you off on the cost of the loan. If the salesman can offer you a better loan package after you have negotiated a low price, then by all means go for it. Otherwise, stick to what you have.

3. Know what you want. Do as much research as you can. Read the consumer reports. Know which make and model you want to buy. Don’t let the dealership make this decision for you. Also find out the invoice price of the car, which is what the dealer paid for the car. You should never have to pay more than a few hundred dollars over the invoice price. In fact, sometimes you may be able to get a car for less than invoice. That’s when dealers get paid additional rebates from the manufacturer whenever they sell a car. You can find out the invoice price of your car by doing a simple Google search online. You will find many car-related websites also list invoice prices. Beware of their car reviews though. In what seems to be a conflict of interest, many of them have business relationships with car dealers and get paid for referrals. Some of them even sell cars themselves.

4. Don’t trade in your used car. You can always get more money selling your car yourself than trading it in.

5. Visit a dealership for a test drive. Go to a dealership to check the car out yourself. The reviews are one thing but if you don’t like the car, you shouldn’t have to buy it. Take the car for a test drive. Be upfront. Let the salesman know that’s all you there for. You might want to leave your checkbook and credit card at home. The salesman may still try to get you to buy a car that same day. Don’t give in.

6. Contact several dealerships and ask for their final quotes. Understand that a lot of dealers are reluctant to give you a quote without first negotiating with you in person, but when car sales are slow and the economy is in a recession, they may have no other choice. They’ll jump at any chance to get another car off their lot. Since you are only interested in one particular make and model, it will be easy for you to compare quotes. The person you will want to contact is the fleet sales or internet sales manager. Don’t get one of the regular sales people involved. That just means one more commission. Be as firm as possible. Tell them you’re not interested in negotiating. You don’t want to play any games. You just want the final price. If they ask you to come in, politely turn down their request. Give them your number in case they change their mind and then hang up.

7. Don’t be afraid to walk away. When you go to the dealership and the salesperson tries to pull a fast one on you and the deal suddenly changes, get up and tell him to his face that he can’t be trusted. Make sure you say this loud enough so the other customers can hear it. Then leave. This may sound harsh but the salesperson lied to you and needs to learn that there is a cost involved. If you don’t do it, they will continue to treat other customers that way.

8. Take your time. Don’t let them rush you. Take as much time as you need to clear up anything you don’t understand or would like to know more about.

9. Read the contract carefully. Clear up any abbreviations. Ask about any charges you don’t understand. Make sure everything you agreed on verbally is also stated in the contract.

Part 1 - Car Sales: Tricks of the Trade

Part 2 - How to Buy A New Car

Part 3 - How to Buy A Used Car

Photo Credit: Chicago Eye