But most of us realize that getting out of debt and establishing healthy finances require us to resist such purchases more often than not. So how can you trick yourself into spending smarter? Try the money-to-time conversion, mentioned in this post from Bargaineering.com. Here’s how it works.

• Look at a pay stub. Take out a recent pay stub to see how much money you make after taxes (and any other withholdings) in a pay period.
• Divide by hours covered. Divide the total amount shown by however many hours you worked during that period—if you get paid biweekly and work full time, for example, you’d divide by 80 hours.
• Keep your hourly wage in mind. The result of the above calculation is how much money you make per hour. Having this number in your head is a great way to gauge your purchases.
• Translate prices into hours. Next time you’re thinking about buying an $8.00 sandwich instead of packing a lunch, figure out how many hours of your life you’ll have to work to actually pay for that sandwich.

This isn’t an earth-shattering technique, but it can be a great reality check for moments of temptation. A smoothie may not seem so cheap when you realize it costs 45 minutes of your life—on the other hand, it may seem like a bargain if it’s only 10 or 15 minutes.

The Next Level: Interest Rates

This thought experiment can work wonders if you’ve been having trouble keeping your money in your pocket. And if you’d like to really explore the effects of saving versus spending on your long-term financial situation, take interest into account.

• Paying interest: Let’s say you buy a couple lattes with a credit card and, for one reason or another, don’t pay your balance in full at the end of the month. That means (roughly) that the cost of those lattes increases by whatever interest rate your account has—instead of costing half an hour of your time, for example, those lattes could end up costing an hour or more, depending on how long it takes you to pay down the balance.
• Earning interest: Instead of swiping the card, now, imagine you transferred the latte money into a savings account and let it sit there for a few years. Rather than sucking your finances dry, it will actually contribute to boosting your total net worth.

It’s a fairly simple concept, and a single decision to buy or save likely won’t affect your finances in any significant way. But remember that financial stability (for those recovering from bankruptcy or looking to get out of debt) is partly a mind-set, and little decisions matter in the big picture.

Going to College (with a Little Help)

The cost of post-secondary education has risen astronomically in recent years, and many graduates are finding that the bump in their earnings potential hardly allows them to cover educational debts. And online entrepreneurs are starting to take notice. Here’s how:

• The site SponsorMyDegree.com lets financially needy college students and graduates post a social networking-style profile detailing why they’re in need of cash to fund their educational expenses.
• Donors who visit the site browse the profiles and can choose to donate as much money as they want to these students.
• The site administrators transfer the money directly to the students’ schools to offset the cost of their tuition and fees.

The concept behind this site, called either micro-philanthropy or cyber-begging, depending on how people feel about it, could be a sign of what’s to come. The downside is that many students who post profiles haven’t received any donations yet and donors tend to stick to small dollar amounts.

But, as publicity for the site spreads (and imitators spring up), the landscape of financing higher education may change.

Driving a Car (But Not All the Time)

Car sharing isn’t a brand-new idea, but it’s one many Americans have not yet considered. Essentially, car sharing works like this:

• A cooperative group owns several vehicles jointly.
• Each member of the group pays a yearly membership fee for the privilege of using those vehicles on an as-needed basis.
• When a member needs a vehicle, she reserves one online or over the phone, picks it up at the indicated location, and drives it for as long as she needs to.

Individual members generally pay mileage- or time-based usage fees, but gas and insurance costs are often included in membership.

• Each member has a key that grants access to a place where the car keys are kept.

In other words, you pay to have a car only when you need it and don’t have to worry about repair costs, parking costs, maintenance fees or any of those other pesky costs that can add up quickly when you’ve got your own set of wheels.

While car sharing can be a great way to save money (and the environment), it will probably only work if you live in a city and don’t have to drive everywhere (i.e. have another transportation option such as walking, biking or using public transit).

Not sure where to start your home goods checkups? Check out this article from the New York Times and this post from TheSimpleDollar.com. Both offer suggestions for keeping your home in good repair. Here are some highlights from both pieces:

• Don’t forget to clean. Even the most sophisticated appliances can be thwarted by a buildup of gunk (whether it be food-, oil-, or soap-based). Assign an off day to each room of your house to clean and freshen up appliances there. A good starting place for cleaning appliances is generally the owner’s manual (not a manual saver? Check online – many manufacturers post them digitally).
• Call in an expert. If an appliance is malfunctioning and a cleaning doesn’t improve things, look up a repair shop in your area. Often, replacing parts is cheaper than repairing old appliances or buying all-new ones, so make sure to ask about potential costs of labor and replacement.

So which gadgets in your household should be getting your maintenance attention? The articles mentioned above highlight commonly overlooked (but important to maintain) gadgets and gizmos. These include the following.

• Refrigerator: The Times article explains step-by-step how to clear the dust from your fridge’s coils (the vacuum cleaner should help) and how to keep it from getting too gooey. The few minutes of upkeep will save you from having to replace the icebox too soon.
• Vacuum cleaner: Since you’ll be using this guy to clean most of your other stuff, it’s important to take good care of it. Most models require changes of belts, bag replacements and bristle upgrades at some stage, so be sure to check your owner’s manual. Don’t feel like forking over the money to keep your machine running? Remember that the alternative is an all-new model.
• Ovens and stoves: Some experts recommend avoiding the self-cleaning feature some ovens offer, since the high temperatures can strain wiring and the appliance itself. Instead, wipe down both the range and the inside when they’re warm but touchable with a soapy rag. Keeping everything clean can help the machine run for longer.
• The whole house: Take the time to peruse your foundation for cracks, check your pipes for leaks, replace washers in leaky faucets, replace furnace and air conditioning filters and test smoke and carbon-monoxide detectors. The bigger issues probably won’t need attention as often as individual appliances, but they can cost a heck of a lot of money if neglected for too long (as this image reminds us).

Many maintenance tasks take only a few minutes and can save you from a serious financial burden down the road!

Additional Resources

Quick Reference Guide to Home Maintenance

That figure is startling.

A Better Way To Play

Most of us know on a rational level that playing the lottery sets us up for failure: the odds of winning have been estimated at one in 195,249,054—meaning that even if we play every day for our entire lives, we still probably will not win. So why do we keep doing it? Here are some ideas—and how you can stop the cycle.

• It’s exciting. When jackpots get above a certain amount, news outlets start covering them—which creates a lot of hype around the lottery. Plus, we rarely (if ever) see news footage about people who don’t win any money—only coverage of the big winners makes it. If you like the thrill of betting, consider setting up a “lottery” with friends that allows you to wager favors (like mowing each other’s lawns) rather than money.
• It feels like a solution. As this post points out, if you have overwhelming debt, can’t find a job or otherwise feel trapped by your financial situation, buying a lottery ticket may feel like a sensible step toward financial independence. In actuality, though, putting the small dollar amounts you use to buy tickets into a savings account would be a much more effective way to get yourself on your feet. Think about it: if you saved $645 per year instead of buying lotto tickets, compound interest would leave you with a tidy sum after a few years.
• It’s about more than the money. In some families, watching the lottery numbers picked and discussing the lottery can become rituals and periods of bonding. But, considering the odds that anyone in a family group will win serious cash, you and your loved ones may be better off saving together toward a joint goal—or bonding over sports teams or recipes.

The Little Bits Matter

One of the most important lessons that many people learn after filing for personal bankruptcy is that seemingly little amounts matter: small purchases with your credit card can turn into a giant debt monster when interest rates kick in; small amounts of money put toward debt each month can lead to a clean financial slate.

While playing the lottery may seem like the answer to all your financial worries, it can in fact be a serious drain on your limited resources. Keep in mind that the less you have to work for a source of income, the less reliable it is.

Whether you want to lounge around the house or make new friends, you have free options. Consider these.

• Play an old game: If you’ve got a deck of cards, an old board game or old video games, drag them out and enjoy them like they’re new. Or, if you’re feeling creative, try to invent a new game by combining the pieces of old board games and/or decks of cards.
• Go for a walk: This may sound pretty dull, but consider all the interesting things you can do on a walk: listen to music, photograph interesting objects and scenes, meet neighbors, overhear other people’s conversations, etc.
• Take advantage of free entertainment: Your town’s tourist center or city hall likely has information about free events going on nearby, which might include concerts, plays, parades and more. Also, religious services are often free and can be a great way to learn about other people’s beliefs and listen to music.
• Learn something: Some major universities now offer free podcasts and videos of lectures that you can listen to free of charge. Or, you could hit up your library for books on cooking, sewing, yoga, car repair, plumbing and more. Bonus: if you commit to learning a useful household skill, you could save yourself money in the future by not having to pay someone else to fix things.
• Raid the pantry: Rather than going to the store for new ingredients, try to use what you already have in the house to create a meal. This may work better as a team effort, so consider inviting a friend over to bring pantry supplies and share the challenge.
• Play outside: Pickup sports games are great for all ages, and a wonderful way to get some exercise and make friends. If your area doesn’t have any locations where pickup sports would work, consider signing up for an adult recreational league.
• See a show: Call a local theatre and ask if they’d allow you to watch a dress rehearsal. Many places will let you do this for free (especially if you have kids) and it’s an entertaining and low-pressure way to introduce arts to young ones.

Additional Resources

Monthly Budget Tracker (PDF)

Money Tips for All Ages (PDF)

The article itself is detailed and worth a read, but here are the major pointers for would-be auto bargain hunters:

• Understand the tradeoff: If you really want a good deal on a car, understand that saving money usually means spending time. In order to find a decent car without spending too much, you’ll have to do some legwork, but the payoff should be worth it.
• Make the right friends: The article suggests befriending a nearby mechanic so you can get good advice about any vehicle you get close to buying. As an added advantage, mechanics often have the inside scoop about people planning on selling cars—you could ask yours to keep an eye out for a certain type.
• Go private: If you have time on your side, opt for private sellers (especially ones with whom you have a connection) rather than car lots. While used car lots can have decent deals, they’re less likely to offer real bargains, because they’re tied to a larger business (i.e. profit-making) model.
• Always check the car yourself: Here’s where some of the legwork comes in. You need to examine enough cars to know what’s a “good” deal and what’s not. The more cars you look at, the better equipped you’ll be to make an assessment about whether or not to buy a certain one.
• Use a checklist: The writer makes a good point here: never attempt to inspect a car without a paper list of points you want to cover—we all forget about certain things, and reminding ourselves in writing is a good way to make sure we don’t leave out anything major before making a purchase.
• Get a professional’s opinion: Once you’ve approved the car, drop a little money (to your friend the mechanic) to have the car looked at by a pro. This will both save you from surprise problems down the road and potentially give you a bargaining chip to lower the price if the mechanic finds something wrong.

Isn’t it nice to know that you can get a reasonably-priced, decent car if you put your mind to it?

The trend would move from using tax refunds to pay down debt and saving, to start spending refunds again in what the federation described as cautious.

Consumers to Treat Themselves

The NRF’s 2010 Tax Returns Consumer Intentions and Actions Survey found that 12.5 percent of those who expect a tax refund this year plan on treating themselves and their families to a car, television or other major purchase. This figure is up from the 11 percent that was recorded last year.

A little bit of free money will go a long way for Americans this year, said Tracy Mullin, President and CEO of the NRF. Retailers planning special promotions over the next few months may find that shoppers are a bit more receptive to opening up their wallets than they have been for the past year.

According to the researchers behind the survey, Americans are enjoying the idea of spending a bit more indulgently after paying down debt and saving their money carefully in the past few years.

Refund Spending and Tax Filing Trends

According to the survey, 43.9 percent of Americans who are expecting a refund will use it to pay down their debt. This number is down from 2009’s 48 percent. The number of people expecting refunds has declined as well, however, from 68.4 percent last year to 65.5 percent this year.

The survey also reported that 60.6 percent of people filed their taxes by the end of February, which allows the IRS to return refunds already.

Another 24.4 percent of filings will be sent in in March, and 15 percent more in April.

More than 54 percent of taxpayers in the U.S. file their taxes online, up from 50.1 percent in 2007. A third of filers will use software to file, while about 18 percent will employ an accountant, tax professional or bankruptcy attorney, and almost 12 percent will enlist the services of a friend to file their taxes, according to the study.