Of course, it’s hard to pay bills in cash without having to visit the payment offices of your gas, water, sewer, electric companies, and sometimes these aren’t even local to where  you live. They also may not accept cash payments in the mail, and besides, it certainly isn’t wise to mail a lot of cash in an envelope. Thus, it’s highly likely that the majority of people who rely on the envelope system pay their bills online through an ACH transfer out of a bank account, or with a debit card or credit card account number. They only use the envelope system for food, eating out, and other purchases that you would make at a cash register in a store.

Here’s the biggest problem we see with the cash envelope system. It’s risky to carry a lot of cash. If you cash your paycheck at a check cashing service, you will pay a check cashing fee (versus paying no fee for direct deposit to a bank account or prepaid card account).  You might get robbed walking away from a check cashing place or at any point on the way home. Your cash stash might get stolen by anyone who discovers it in your home.

Finally, some personal finance gurus argue that using cash actually makes you spend more. If you have three twenties in your pocket, a $5 ice cream cone is in easy reach as a spontaneous purchase, but you may resist that cone if you thought about putting it on a credit card or prepaid card, just because it’s a small purchase put on plastic, and some merchants frown on that due to the swipe fees they pay.

Virtual Envelope System

Now imagine that you are using some budgeting software. Today there are many to choose from, or you can even set one up yourself in a simple spreadsheet. You set your budget categories in your electronic budget system. Your starting point might be historical spending going back a year or six months. It’s easy nowadays to download your transaction history from your checking accounts, credit card accounts, and/or debit card accounts. Then import that transaction history into your spreadsheet or budget software. Budget software can even show you your spending categories in a nice pie chart view, or  a table that may help you recognize patterns such as overspending immediately after payday.

Next, like the real envelope system, you divide your savings balance among your different categories. Then—and here’s the harder part with this digital system—you have to have the discipline to not go over your spending limit in each budget category or “virtual envelope.” How do you do this? By checking your budget spreadsheet each time you go out the door, so you know where you are for that category. Say, your “monthly MP3 budget” is $10 and you see that you’ve spent $10 last night downloading ten songs on iTunes, then you can’t buy any more MP3s until next month.

How debit cards make this easy is that you rely on them for all your spending. Avoid your credit cards (because you are likely trying to pay them down). Then, when you download your transaction history, all of that data will flow into your various spending categories automatically.

With a debit card you might lose it or get robbed but your money can remain safe. You have eliminated the risk of carrying cash. You will hopefully think twice about using your plastic for small spontaneous purchases.

With either system, you should soon learn the fine art of budgeting and be on your way to financial well being.

Envelope System for Saving Money vs. Using Debit Cards is a post from: MiCash Prepaid MasterCard

Next, figure out your main budget categories and where you can cut back spending in each of them.

Cut Necessary Spending You Can Micromanage

The easiest category to chip away at is necessary spending that you control on a purchase by purchase basis. Think grocery shopping. You can easily swap an expensive item (steak) for a cheaper item (ground beef), or cut out items all together (ice cream).  The same thing goes for clothing purchases. To some extent, switching retail environments can help here. For instance, shop at Old Navy instead of the Gap, or for serious saving, shop at garage sales and used clothing stores. Shop at outlet malls instead of trendy malls.

If you commute, consider alternatives, like biking to work, or ride sharing. Or even telecommuting.

Cut Contracted Spending

What is harder is to cut are budget areas where you have contracts in place, like child care, lawn care, phone, cable, etc. Some contracted spending you have to have, like utility bills. The way to cut these, as you no doubt know, is to try and use less energy. Replace light bulbs with more efficient compact fluorescents. Turn of lights when leaving rooms. Wash clothes with cold water instead of hot. Turn down the thermostat. And so on.

Some contracts you can reduce. For example, you can reduce the number of channels you get on a cable or satellite dish to bring down that monthly bill. If you use a lawn care service, or other types of services, ask if there is a lower service level. Maybe you are at the Gold standard level where Bronze will do.  You can also eliminate some contracts all together, like TV and lawn service. Some you may not be able to eliminate, like child care.

One trick is to pay contracted or monthly bills more frequently. You might not save money, but you are less likely to miss a bill payment altogether or bounce a check (which can cost you money). On something like car insurance, where odds are you break up a sixth month bill into monthly bills, you are paying a convenience fee or interest. If you can pay the whole bill in one lump, you will save on those fees.  Finally, it is also possible to negotiate a lower rate all together. Or switch to a new provider with a lower rate. Often, when it comes down to the wire and you threaten to leave a provider to get a lower rate, your current provider manages to find a lower price for you, either by just cutting the price, or adjusting what you get for what you pay.

Find out if you save money by bundling some services such as phone, cable, and Internet. Or car insurance and home owners or renters insurance.

Cut Purely Discretionary Spending

You might be surprised to see when you break out your spending how much of it goes towards Wants instead of Needs.  A want is anything you can live without–and don’t say “I can’t live without my $5 Starbucks Grande Frappucinno every day.  One way to reduce discretionary spending is to simply keep less cash in your wallet. Or avoid whipping out your credit card for spontaneous purchases.

If you really need that vacation this summer–and who doesn’t–plan ahead for ways you can have fun that don’t cost a lot of money. Hike instead of renting expensive equipment like jet skis. Buy snacks or even meals at the grocery store instead eating every meal at restaurants. Or choose a destination where you can stay with friends or family instead of a hotel.

Cut out Savings…Not

We don’t recommend this. In fact, if you make cuts in all other areas and you aren’t saving for your retirement, or school, or other worthy and important goals, shift some of your budget cutting saving into actual savings.

How to reduce monthly expenses is a post from: MiCash Prepaid MasterCard

Redeeming Riches has a good post on how to file for extension.

If you do not request an extension of the IRS tax deadline and you file late, you will be hit with a Failure to File Penalty of 5% per month (up to 25%) on any unpaid taxes.

Gen X Finance notes the many free ways you have for getting tax advice, including calling the IRS help line at 1-800-829-1040. Believe it or not the IRS wants to help you.

And over at Wise Bread they can show you how waiting this long to file may have paid off if you take advantage of these helpful tips.

It’s Almost Tax Day is a post from: MiCash Prepaid MasterCard

If your blog is listed here, please feel free to right click on either of the badges above to add to your website with a link to this page: http://www.micash.net/personalfinance/micash-50-faves/

Here then, in alphabetical order are our 2010 “50 Faves.”   Blog names are hyperlinked to each site followed by the Twitter handle in Twitter’s format: @twitterhandle.

20 Something Finance @ge_miller
Focused as the name says on people in their 20s.

20s Money @kevinduffey
Another blog for the Twentysomething crowd, with advice on how to make money as a blogger.

Almost Frugal @AlmostFrugal
This group blog with the cute squirrel logo brings together the voices of four women as they talk about frugality and saving money for their families.

Bargain Babe @bargainbabe
Daily tips for savvy spenders.

Being Frugal @Lynnae
How to live frugally from a Christian wife and mother trying to get out of debt.

Blogging Away Debt
This blog switched hands after the original blogger paid off her debt.

Budgets Are Sexy @budgetsaresexy
Great advice for setting budgets and sticking to them on your way to becoming a millionaire.

Cash Money Life
Cash Money Life is a personal finance blog with an emphasis on saving money for small businesses.

Centsable Momma @centsablemomma
A frugal mom who can point you to coupons and other deals.

Consumerist @consumerist
An excellent group blog and one of the largest personal finance and consumer advice blogs by any measure.

The Coupon Queen @consumerqueen
Looking for deals and free stuff.

Dealicious Mom @dealiciousmom
This mom regularly finds you coupons and other deals

Deal Seeking Mom @dealseekingmom
You want deals? Follow this mom.

The Digerati Life @digeratilife
An engineer in the Silicon Valley blogs about personal finance and her life.

Debt Kid @debtkid
The “kid” has a great personal story of how he is paying off a personal debt and growing a business. Great tips for digging your way out of the debt hole.

DINKS Finance @dinks_finance
A multiblogger site going through a change of ownership, but still relevant.

Enemy of Debt @EnemyofDebt
Brad Chaffee shows his readers how personal responsibility and fiscal discipline relates to debt reduction.

Eliminate the Muda @leanlifecoach
Business background gets applied to helping you save money.

Fabulously Broke in the City @brokeinthecity
This 20-something gal living in the city can show you how she got out of debt and stays debt free.

Faithful Provisions @faithfulprovisions
This Christian blogger looks at saving money from the perspective of stewardship.

Finance Your Life @doctor_s
A young man’s everyday struggle with everything related to the almighty dollar.

Financial Highway @moneyhighway
Toronto based blogger with a background in finance.

Fiscal Geek @fiscalgeek
Dave Ramsey enthusiast and self professed geek.

For the Mommas @4themommas
Deals and coupons. What a value!

Free Money Finance @FMFblog
A free and simple discussion on money and finance from someone who paid off their mortgage and is living debt free.

Frugal Babe @JennFowler
Offering money saving tips and advice on how to live frugally, from a suburban “babe”’s perspective.

Frugal Upstate
Tips, Tricks and Techniques for living the good life on a budget

Gather Little By Little
A group personal finance blog from a Christian perspective.

Generation X Finance @JeremyVoh
The Gen X’ers need to budget and live frugally too. Jeremy Vohwinkle blogs here as well as writes on finance for About.com.

Get Out of Debt Guy @getoutofdebtguy
Answers questions about how to get out of debt and provides articles and videos.

Get Rich Slowly @GRSblog
Popular group blog on personal finance.

Green Panda TreeHouse @green_panda
Personal finance for college students and the young at heart

The Incidental Economist @incidentalecon
Economics, Health Policy, Law, Life: Musings of Curious Minds

Lazy Man and Money @lazymanandmoney
Irreverent and insightful look at topics such as: banking, budgeting, career, credit, debt, entrepreneurship, investing, taxes, real estate, insurance, spending, retirement, and estate planning.

Len Penzo @LenPenzo
Len Penzo does some nice roundups of personal finance blog posts from other bloggers. He also offers some nice tip, tricks, and personal advice.

Living Almost Large @livingalmost
A breath of fresh air about trying to live within your means.

Man Vs. Debt @ManVsDebt
Adam Baker’s popular blog about his life trying to pay down debt and be a dad and husband.

Mighty Bargain Hunter @mbhunter
Hunting bargains for you and me.

Money Crashers @moneycrashers
This blog seeks to develop a community of people who are trying to make financially sound decisions.

Money Ning @moneyning
Former IT pro David Ning now blogs on money.

Money Saving Mom @crystalpaine
This upbeat and encouraging blog will help you find great deals, print coupons, stretch your hard-earned dollars, and live on less than you make so you can save more and give more.

Money Under 30
SmartMoney Magazine writer David Weliver blogs about personal finance issues to help those under 30 start managing their wealth early.

Northern Cheapskate @ncheapskate
Frugal advice from the Great White North

Personal Finance Advice
This group blog offers straightforward, regular personal finance advice

Personal Finance Firewall
This newly minted college grad and IT professional is a life hacker with an interest in personal finance.

Simple Dollar @trenttsd
Another blogger with a story to tell of financial meltdown and then recovery.

Squawk Fox @squawkfox
Frugal living that is sexy and fun

Sweating the Big Stuff @DanielPacker
Budgeting advice, tax tips, and personal finance issues from the perspective of a twentysomething.

Wealth Pilgrim @nealfrankle
Offers relevant money management advice, financial stress management, and plans and resources for addiction to spending recovery.

Wise Bread
The 100-gorilla of personal finance blogs, but a good one.

MiCash 50 Favorite Personal Finance Blogs is a post from: MiCash Prepaid MasterCard

Unless you work at a bank or have been denied opening a bank account, you probably haven’t heard of ChexSystems. As a service to help banks limit their exposure to fraud and credit risk, ChexSystems maintains a list of individuals whose previous bank accounts have been “closed-for-cause.” These causes range from outright fraud, such as writing bad checks, to other causes that present a credit risk or potential for fraud. ChexSystem reports on such risk factors as:

• Account holders who report lost or stolen checks and have closed their account for this reason.

• Account holders who have had extended negative balances.

• The number of times a consumer has applied to open a bank account in the past 90 days.

These are flags for the potential for fraudulent activities such as opening and closing accounts for the purposes of writing bad checks. Some analysts also suggest that banks might use the list to weed out unprofitable banking customers such as individuals who keep low balances (which are less profitable for the bank.)

To be sure, Chexsystem helps banks combat the problem of fraud. However, innocent individuals who have not committed fraud, and may have only been guilty of inadvertently bouncing a check, or having a few overdrafts in a short period of time, can wind up essentially “blacklisted” from being able to open a bank account because they are on the ChexSystems list.

Banks decide based on their own policies and procedures when to close an individual’s account and report that fact to ChexSystems.

So, if you are having trouble getting a checking account, you do have alternatives.

What is ChexSystems? is a post from: MiCash Prepaid MasterCard

It is okay to splurge every once in a while. After all, life would not be very enjoyable if we could not let ourselves loose every once in a while. We also need some form of reward for all the hard work we have been throwing ourselves into. We have pointed out some time before that splurging is very different from overspending. If you find yourself compulsively shopping more often, buying something not because there is a need but simply for the sake of buying it, than you had better watch out especially if you use a credit card as your main payment option. Excessive overspending can lead to credit debt. And as we always say, credit debt is a nasty trap we do not want to get ourselves pulled into.

For some people, the threat of debt alone cannot curb the appetite for spending too much. Here are a few simple tips that can help you ease out from the clutches of the bad habit of overspending.

Monitor Your Spending Activities

Know how much is in your wallet and your bank account. Keep the receipts from past purchases. You might even want to list down your daily expenses on a notebook or a file on your computer. You do not have to be an accounting whiz to keep track of your spending activities. You just need to observe how you use your money. Find out how much you tend to spend per day on the average, and see if your consumer lifestyle is in sync with your income.

Downsize and Downplay

Where does your money usually go to? How often do you refuel your car? Do you eat out a lot? Do you shop for a new pair of shoes almost every weekend? Sometimes, it is best to downsize on the expenses that we need for daily life, and downplay our expenses for things we can do without most of the time. Shopping for clothes and shoes may be fun but unless you are a trendsetting fashion icon who is photographed everyday for her new looks, you do not need to do it every weekend. Put a budget on your food and grocery expenses as well.

Get a Prepaid Debit Card

Keep your credit card for emergency purchases. As much as possible, use cash instead. If the payment requires the use of a card or you have simply gotten too used to plastic payment, get a prepaid debit card. Unlike credit cards, which tend to accumulate interest and whose expenses are hard to monitor frequently, prepaid debit cards act more like an extension of one’s wallet. You can only spend up to the amount you yourself put into your account. You will be able to keep a closer eye on your expenses. As a plastic payment option, it carries the same perks and privileges of using a credit card; you can shop online with it, make travel reservations remotely, and do other activities that can otherwise not be penetrated by cash payment.

Baby Steps for Curbing the Appetite to Overspend is a post from: MiCash Prepaid MasterCard

It’s only the start of spring, and already people are looking at matters meant for the fall. That’s when a new semester of college starts anew, and when people start thinking about how they’re going to pay for it. An estimated 70% of all students in the United States are able to study in college thanks to various grants, student loans and scholarships. These people end up becoming the future workforce of the nation, and some rise to become captains of industry.

Yet, the future is not always bright for these students. The average cost of a college education for public colleges is about $4,081 annually. For students who enroll in private schools, the figure is steeper: $18,273 a year is what students need to pay.

Pick Your Schools Early

Where do you live? If your heart is dead-set on a school outside your home state, try to go for it. Bear in mind, however, that for a lot of state colleges, you will need to pay more if you are enrolling from a different state. This is because the financing that goes into it is taken from state taxes, and prices will vary if the student isn’t from the state (and therefore, whose taxes didn’t go towards the college).

Plan ahead. This is not to discourage you from pursuing a program or a degree in the best possible place you can earn it. Just bear in mind what kind of debt you may need to shoulder, and if your degree and (future) career can possibly pay it off.

Like All Loans, Study The Terms

The system of college loans was supposed to be designed to feature lower interest rates for students and easier repayment terms when compared to loans that are offered at market rates and terms. These rules were intended to make it easier for students to finish their college degrees.

However, too many people still have trouble repaying their college loans. In his book The Audacity of Hope, President Barack Obama narrated how difficult it was for him to pay off the college loans he incurred, largely because of the expensive costs of his university.

Like all loans, study the terms. Interest rates, schedules of payments, creditor policies and terms of payments all come into play, as they all can be very different for each student.

Volunteer!

People who are looking for ideas for wiping out educational loans can always take an alternative route to paying them off. These activities involve rendering service to the country, and in return the government can provide loan forgiveness, and help write off these debts right away.

Programs such as the Peace Corps, Americorps and other volunteer programs can help deal with student debt under certain circumstances. Some professions to consider that help deal with debt include becoming a full-time teacher in high-need areas or enlisting in the armed forces, especially those stationed in high-risk areas.

Staying Smart

At the end of the day, understand that it’s your job to make sure you have good training and education, both keys to a bright future. Because you learn best when the money isn’t something that’s on your mind, we hope these tips become truly helpful.

Smart Spending: How to Sort a College Loan is a post from: MiCash Prepaid MasterCard

Yes, it may sound strange, but we know there are some people who have never tried shopping online. This is in the face of numbers from the United States Census Bureau from 2008 indicating how e-commerce accounted for $93,280,000,000 of all total retail done in America, equating to around 2.5% of all major sales transactions. There are also figures from Nielsen that estimate that over 875 million shoppers worldwide go online, and that number is pegged to rise sharply in the future.

This rise in popularity is owed to the benefits that shopping online provides people with, especially those who are looking for very specific kinds of items or gifts. Yet there are still thousands who have not engaged in online shopping, and they have their reasons. Identity theft, money security and credit card fraud all come to mind when discussing the perils of buying online. This doesn’t include worries over shipping and product damage, or items that no longer suit their owners, such as clothes or shoes with sizes that don’t fit.

Never bought anything online? Here are a few points for people to remember:

‘Who’s That’ Is a Legitimate Question

There are lots of shopping websites, and they are often operated just like a normal store. However, a lot of shopping online gets done via auction sites, and the products put online are placed by users. The same goes for shopping bulletin boards on social media groups. You are often shown a description or a picture of the item, and you don’t always get a guarantee that it’s either the same exact thing or that it works properly.

Since you’re the buyer, try to make it known that he or she, the seller, has to be the one to establish trust. And make it a two-way street too: Take the time to get to know the person you are doing business with. Try to set up a phone call or a chat. If and only if you feel you can trust them, that’s when you can transact freely.

Shipping: Do They Tax? Do They Charge? How Fast?

Remember those three questions when paying for items online: Do they tax? Do they take credit cards? How fast? The most crucial answer to these questions is another question: “If yes, is it still worth it?”

Taxes come into play for some items, especially for imported goods. Some products, such as hard-to-find books, CDs or DVDs need to be shipped, and the buyers do need to pay certain tariffs. Whether it’s still worth it is up to the buyer, so if you’re buying, check costs. The same goes for shipping costs: if you have to shoulder the price, check if it’s too much. Do the same with the time it takes to deliver.

Credit Vs. Debit:

This is a common question asked on buying products online. The debate rages on whether to go with a credit card or with debit solutions. The easy answer: Go with what you’re comfortable with. Both credit and debit schemes have their own good points, so it comes down to what the buyer prefers.

Prepaid debit cards have the advantage of being more easily acquired by people who do not have credit to use. Debiting also means that buyers need not spend too much on interest every month. Meanwhile, credit cards may be more easily accepted by a wider range of shops, which is of critical importance when purchasing goods online. This should soon be a non-factor, though, as debit cards are becoming more and more prevalent.

Online Retail First-Timer Tips is a post from: MiCash Prepaid MasterCard

Once you have stepped into the stage of adulthood, life becomes much less carefree. Your responsibilities tend to multiply and you realize just how much the people around you depend on you and your capabilities. It is when you come to the point of starting your own family that is the best time to think about getting life insurance. More than a guaranteed pay-out option for unfortunate events, a life insurance plan is a good investment that makes sure you and your family can have a financially stable future no matter what happens.

Endowments and Investment-Linked Policies

Both traditional and variable life insurance policies have an investment option. Traditional endowment plans work by giving you a percentage of your sum insured on certain policy years. For example, if you sign up for a life insurance endowment plan that takes ten years to pay, you can get around 10 to 15 percent of the sum insured on the 10th, 15th, 20th or 25th years that the policy is still in force. You can choose to take these endowments and use them however you like, or keep them with your plan as additions to the amount that will eventually go to your beneficiary on the event of your death.

The most popular form of life insurance to get now, however, is a variable or investment-linked policy. Basically, this form of life insurance builds cash value over time. Every time you pay your premiums, a portion of the amount goes to specified separate accounts such as bonds or equities. This allows your money to grow with little effort.

Ensuring Comfort in the Golden Years

Your life insurance plan can double as your retirement plan. When you have already passed your prime, you will still want to live comfortably. By that time, your children will have already grown up, and you will have all the time in the world. You will want some spending money for the leisurely little adventures you and your significant other will want to take as rewards for being able to raise a good family and live a good life.

If you sign up for life insurance while you are still young and have plenty of opportunities, you can pay low annual premiums for a high sum insured. With time, that amount can grow exponentially depending on the type of policy you choose to get.

Thinking about the Long-Term

Planning ahead has always been one of the secrets for financial stability and success. Part of creating an effective personal financial plan is learning how to budget your income so it can stretch out to sustain all your monthly needs, bills, and other expenditures while still leaving some allowance for your savings account. With an insurance plan, you will be forced to think even further into the future. Rather than planning your budget just up to when you get your next paycheck, for instance, you can plan for the whole year. This may entail some lifestyle changes, such as less leeway for impulsive spending and indulgences, but this could pay off in the long run both for yourself and your loved ones.

Using Your Life Insurance as an Investment is a post from: MiCash Prepaid MasterCard

photo by Ryan Yessman

The cold winter months are finally over and its time to celebrate. For schools and universities across the country, the arrival of spring means it’s almost time for one of the most highly anticipated events in a college student’s life: Spring Break.

Before you spring for that all-inclusive hotel package or special Spring Break travel deal, plan ahead and look around at your options. One of the biggest party poopers is learning too late that you spent too much on a vacation that wasn’t worth the splurge. It takes a lot of diligence and discipline to save up your money. A post-break hangover is fine, but coming home flat broke is another matter entirely.

Do Your Research

Check online and canvas for affordable Spring Break vacation deals. Some Tour Companies put on special chartered flights for Spring Break at discounted rates and a number of hotels offer special packages that provide students under legal age with meal or drink passes throughout their stay. Before agreeing to take these packages, look up the hotel or resort and read some reviews. Inclusive packages and value-added packages are only great deals if they can be enjoyed. If you end up not liking the food or the crowd at the hotel your and your friends checked in at, Spring Break is going to turn out being one long week, and we mean that in a negative sense.

Set a Budget

To prevent yourself from crashing back into reality without a single penny left in your wallet, talk with your friends and agree on a collective Spring Break budget. Do not be tempted to spend all your savings on one wild week of partying out of state. Let your research guide how much you should be willing to shell out for the one exciting week where you can put down your books, let your hair down and have a fun time with your friends and the rest of the young adults of the country.

When sealing your travel deals online, a safe way to purchase tickets and pay for hotel reservations is to use a prepaid debit card. You can bring the cash card along with you on your trip as well. Unlike credit cards, you won’t run the risk of overspending with a debit card since you can only spend up to the amount that has been checked into the account.

Alternative Spring Break

If you’re not the partying type, or if you and your friends want to try something different this year, a very rewarding and cost effective way to spend your time off is to go on an alternative Spring Break. Rather than basking in the sun and waves while sipping on a colorful cocktail, try volunteering for one of your neighborhood’s non-profit organization’s alternative Spring Break projects. There is little spending and a whole lot of helping involved in these activities. You and your friends will find the work both fun and fulfilling; you won’t even have to do too much convincing when you ask for your parents’ permission.

Prepare Your Wallet for Spring Break is a post from: MiCash Prepaid MasterCard