Save by Cutting Waste at Home.  (1) Bananas – Peel overripe ones and put them in a sealed bag in freezer and use them later in banana bread or smoothies. (2) Cookies – put broken cookies or other unwanted cookies in a food processor and grind into crumbs, keep in a plastic bag in freezer and reuse them later to make a crust for pies or cheesecake topping. (3) Cornflakes – Use broken pieces and crumbs that settle by grinding them and using them to coat fish or chicken before frying. (4) Honey – if your honey turned solid, put the bottle in a pot of boiling water until it returns to its original texture.

Banks are sending letters to show you the interest you can save by paying your mortgage biweekly. That means that at the end of the year, you’ve made the equivalent of an extra monthly payment.  However, take into consideration the enrollment fee or monthly fee it will cost you to join the bank’s plan.  If you can afford to consider making the extra payment, then use the money instead to contribute to your retirement savings.  Or, use the extra funds to pay off high interest credit card debts. 

Want to save about $600 a year on your car bill? Don’t drive aggressively, go easy on the brakes, stick to the speed limit, don’t idle and keep a steady pace.

Cut costs in your home by following a few simple tips.  (1) Don’t rinse dishes before they go in the dishwasher.  Tests prove that you waste about 6500 gallons of water a year when doing so. (2) Wash your clothes in cold water only and save about $60/year.  (3) Use LED lights which use 84% less energy than incandescent bulbs and 30% less than CFLs.  (4) Flush out your water heater to remove sediments which shortens its life.  (5) Raise your thermostat by 10 to 15 degrees for 8 hours a day to cut your cooling bills by 10%.

Buying vs. Renting in retirement.  The Pros of Buying – (1) You’ll have more control of where and how you live. (2) Your home could appreciate if you buy low and wait till the market goes up again. The Cons of Buying – (1) Your costs will probably be higher from closing date to maintenance of the home. (2) You’ll have more responsibility in maintenance if work needs to be done or if things need repairing. 

The Pros of Renting – (1) You’re free to come and go. (2) You won’t have a mortgage. (3) You’ll have the cash to invest your money elsewhere.  The Cons of Renting – (1) You might feel less rooted and not part of the community. (2) You won’t build equity in the home you’re in.

Time Shares that you no longer want?  If you hardly use your time share and wish to be rid of it, look into companies that will buy it from you.  Don’t make the mistake of missing payments for it to go into default.  From your first missed payment, your credit score will begin to drop immediately.  Once the loan goes into default, you can expect your score to drop between 140 to 160 points and a full recovery of your score will take the entire seven years that the default remains on your credit report.

Tax on inherited annuities.  If you inherit annuities, distributions are taxed as ordinary income.  If you receive it before the annuity became a stream of payments, the value will go to the beneficiary and you’ll probably have the option of taking it as a lump sum or over time.  For non-qualified annuity (which is purchased outside a retirement plan after tax dollars, you’ll owe taxes only on the growth).  If the owner died after annuitization, payments will be made according to the schedule the owner established and taxes will be paid on the distribution (for a qualified plan) or on the growth (for a non-qualified plan).

A recent survey of 392 bank branches in 21 states by the U.S. Public Interest Research Group found that fewer than half the branches fully disclosed checking and savings fees to potential customers.  Now, the federal Truth in Savings Act requires the disclosure of all account related fees from banks.  Make sure you ask your new financial institution what all of their fees are or for a copy of their fee disclosure.

Beware of solar energy installation scams.  Be especially cautious of people who show up unexpectedly at your door and companies that advertise in local papers or flyers to your home.  First, determine if solar energy makes sense for you.  If you decide it is good for you, go to www.dsireusa.org to check for federal or state incentives that can save you as much as 50% on your installation costs.  Also check out any contractor with the BBB at www.bbb.org and verify that they meet your state’s licensing or registration requirements.

Talking of changing tax breaks.  Currently the income tax brackets, standard deductions, personal exemptions and others are adjusted yearly, based on the government CPI (Consumer Price Index).  Economists argue that the current CPI tends to overstate actual inflation because the formula does not account for how people have changed their spending patterns as prices increase.  They feel a “chained” index is a better measure of inflation.  However, lowering the index would be a killing for low to middle incomers who make $100K or less yearly.  The change would bring in $60 Billion in revenue over 10 years and more than half of it would come from the low to middle income filers.  This change would not only affect income taxes but also adjustments in social security benefits. 

Tips on Cars: (1) Cars: Vehicles with stick shifts usually get 2 to 5 more miles/gallon according to Consumer Reports.  They can cost $800 to $1200 less and need fewer, less expensive brake and repair transmission repairs.  (2) Use Cruise control to get better mileage on the highway. (3) Buy a car at the end of the month when agents try to meet quotas and will usually strike a deal to make a sale. (4) Get gasbuddy.com mobile app to check for local gas prices. (5) After filling up, twist the gas cap until it clicks.  One in six cars has an improperly fitting or missing gas cap which can reduce a car’s mileage by as much as 10%. (6) Before buying a used car, check for smoke colors.  White smoke often results from water or antifreeze suggesting overheating.  Blue smoke could be caused by a clogged PCV valve or by engine oil entering cylinders, possibly because gaskets failed.  Black smoke could indicate excess fuel in cylinders or problems with the carburetor, fuel pump or computer sensors. (7) To ensure rotations are preformed, place a white marker on rear tires; it should be on the front when you pay your bill. (8) Check cardhub.com or cardratings.com to get credit back on gas purchases or a gas chain store to get some rewards back. (9) Keep a full cup of liquid in your holder to avoid spills when you drive. It will help you stop jackrabbit starts, sudden stops and higher speeds that can lower your in-town mileage by 5% according to the US Department of Energy.  

Use the following to spend less.  (1) Energy Star qualified compact fluorescent light bulbs (CFLs) to save at least $30 in energy costs over the bulb’s 7,500 to 10,000 hour life.  (2) Install an electronic setback thermostat and lower your home temp 5 to 10 degrees at night and when no one’s home to save up to 20% on the cost.  (3) Save up to 40% on energy bills by sealing cracks or gaps in ductwork and insulating ducts and caulking holes in the walls. (4) Seal large gaps around chimneys, furnace flues, plumbing pipes, ductwork, light fixtures and soffits in the attic.  Lay insulation between attic-floor joists and on the hatch or door. Seal air leaks in the basement and insulate ceilings in unheated basements. (5) Save up to 5% on energy bill by insulating hot water pipes and lowering the water temp from 130 to 120 degrees. (6) Repair windows by caulking and weather stripping.  Or, buy new ones to save between 10 and 25% on your heating bill. 

Get Rebate Cash Faster: (1) Read rebate requirements and deadlines before making a purchase. (2) Keep product boxes and receipts until you’ve read rebate instructions in case you need to cut part of the box. (3) Use the product before mailing in the rebate form. (4) Copy all rebate materials and keep safe in case the claim is rejected or lost. (5) Print rebate forms from the vendor website immediately before they remove the link. (6) File your rebate form in advance of the deadline.  (7) Watch carefully for your check which might be mistaken for promotional mail. (8) Take action if the rebate doesn’t arrive at all by calling them and jotting down the name of the person you spoke to. (9) File a complaint with the State’s Attorney General where the company is based if the matter is not resolved.  Or the Federal Trade Commission at ftc.gov

Have a Safe and Happy Halloween!  The benefits of AARP: (1) Members save by getting up to 60% off or more on retailers at the Everyday Savings Center powered by NextJump. (2) Auto insurance discounts of up to 10% may be available to graduates of AARP’s Driver Safety Program. (3) The Travel Center powered by Expedia offers discounts on car rentals, hotels, select cruises, vacation packages and more. (4) Tax-Aide counseling program at thousands of locations during the Jan-Apr filing season.  They help low to middle income filers. (5) Regal Entertainment Group theaters allows you to pay $5.50 for a bundled purchase of a 32 oz soft drink and 64 oz popcorn.

When to Switch Credit Cards: (1) Check bankrate.com to find cards with the lowest APR, low fee or no fee for balance transfers. (2) Call your issuer’s supervisor and ask if they can beat the rates you get from #1. (3) Know your credit score to ask for a better rate. (4) If your rate is approved, make sure it’s for your current balance and any future charges. (5) If your rate is denied, explore the new offers. (6) Transfer balances to new cards without going over the limit on the new card. (7) When cards are at a zero balance, write a letter to the issuer to close out the account.  When you receive confirmation, cut the card and discard.

Have a Wonderful Bountiful Thanksgiving!  Drive safely and be blessed.    Start gathering your financial documents for your bookkeeper to process.  This way, you can get your taxes filed on time especially if you’re due a refund!

Merry Merry Christmas.  This is my favorite Holiday in the year.  No financial tip this month. Just enjoy and spread your love around.  I thank all my clients for another wonderful year.

Happy New Year!!  Six Year End Tips To Reduce 2011 Taxes: (1) Make charitable contributions if you itemize by 12/31/11 and keep proof of payment.  (2) Install energy efficient home improvements such as insulation, new windows, water heaters, etc.  (3) Check your investments for gains and losses and consider selling by 12/31/11.  (4) Contribute the maximum to retirement accounts.  (5) Make a qualified charitable distribution (QCD) from your retirement account to a qualified charity if you are age 70.5 and over.  (6) Small business health care credit if you are a small employer who pays at least half of your employee health insurance premiums.  If you pay wages of less than $50K a year, you may qualify as well.  Overall, save all receipts and records related to taxes. 

Money-Saving Apps to download on your smart phone!  (1) Where: Once you tag your favorite retailers, it tells you every time they post a coupon. (2) Gas Buddy: It finds gas stations near you and shows you their recent prices. (3) Foursquare: It tracks your location and alerts you on deals at nearby movie theaters, museums, restaurants and other places. It also connects you to daily deals from Groupon and other social-shopping sites. (4) Cellfire: It loads coupons from more than 3,500 grocery stores and retailers onto your loyalty cards. It also sends you a reminder that you have a coupon when you enter the store that provided it. (5) PriceGrabber: It lets you know who’s selling goods at the best price, including tax and shipping that are free.  (6) Garage Sales Tracker: It finds garage sales, flea markets and consignment shops in your area.