22 Ways To Fight Rising Food Prices

By Lisa Smith

Source: Investopedia - A Forbes Digital Company/www.investopedia.com

Food, clothing and shelter generally top the list of basic human needs. While shopping at a discount store instead of the mall generally takes care of the clothing issue, and living in a small apartment instead of a McMansion can address your housing situation, rising world food prices can lead to some significant challenges in the food department. Everything from rising transportation costs to the development of biofuels, such as biodiesel, push up the cost of food and put a pinch on consumers' wallets.

While the need to eat isn't something you can avoid, there are some steps you can take to keep the costs in check.

1. Eat at Home
   Dining out is an expensive proposition. Just about any nutritious meal that you buy in a formal restaurant can be made at home for a fraction of the price. Even good coffee is cheaper to make if you do it yourself. Fast food is excluded from the category, as high-calorie, low-quality food can be had a bargain price, but the impact on your long-term health overrides the benefit of short-term savings. (If you love restaurants, try investing in them instead of eating at them.
2. Shop With a Plan
   If you stumble around the grocery store and fill your cart with everything that catches your eye, chances are you will spend a lot more money that you needed to spend. To minimize your cash outlay, prepare a shopping list before you leave home. Plan your meals for the week ahead, and make careful note of what you need to buy in order to prepare those meals. Once the list is made, purchase only the items on the list, and avoid impulse buys.
3. Put on Blinders
   Grocery stores are designed to make you go through a maze to get to the most basic items you need in the hope that you will make a few impulse buys along the way. If you keep to your planned list of needed foods, you won't be tempted when you get forced down the junk food aisle to get at the milk. Because most necessities and basic cooking items are found along the outside perimeter of the store, start there and work your way around the edge of the store, only stepping into the maze to grab any leftover items on your list.
4. Eat Before You Shop
   When you are hungry and you walk into a building full of food, there's a high likelihood that you are going to fill you cart with unnecessary and expensive purchases that appeal to your taste buds. To keep your costs down, eat first and shop on a full stomach.
5. Avoid Prepared Foods
   Our fast-paced society encourages convenience, and the grocery store has capitalized on this trend. Ready-made meals are easy to buy, but come with a premium price tag. Instead of putting that rotisserie chicken and macaroni salad in you cart, buy the ingredients and prepare the meal yourself. The same concept applies to frozen entrées, baked goods and any other food that has been prepared in some way for added convenience.
6. Skip the Bottled Water
   If you don't like the water that comes out of the tap, buy a water filter. The per-gallon cost is significantly less than the cost of bottled water - and without all the plastic bottles to discard, it's a lot easier on the environment.
7. Shop Without the Kids
   Hungry, tired, cranky kids increase the amount of time it takes to get your shopping done. Every extra minute that you spend in the grocery store increases the likelihood of extra items finding their way into your cart, including toys and snacks designed to keep the kids quiet while you try to focus on finding a few bargains.
8. Buy in Bulk
   Bulk buying can save you a significant amount of money. Pay attention to the prices and pick up the family size package if the per-unit cost is lower and you have a place to store it. Shopping at big-box bulk retailers like Sam's Club and Costco can also save on your bill if you shop there frequently enough to cover the cost of membership, but pay careful attention to your spending habits. The big boxes are often no bargain at all when compared to sales prices and coupon savings at other stores. In addition, they may encourage you to buy more than you need, driving up your grocery bill.
9. Use Store Reward Cards
   If the store that you visit most frequently has a reward card, be sure to sign up. In some cases, stores raise their prices when they offer reward cards, and without the card your bill will certainly be higher. If the reward card offers other benefits, such as a ham for the holidays or a discount on gasoline, be sure to maximize your benefits by paying attention to the cutoff dates and cashing in your points before they expire.
10. Use Coupons
    Coupons provide an easy way to save money. Clip them and cash them in, paying particular attention to stores that double the value of manufacturers' coupons. A number of websites also offer coupons exclusively, and they are a great place to search for discounts on the items you have on your list. If you frequent a website of your favorite brands, they will often offer discounts to their faithful public. A few minutes of surfing online can make a difference at the till.
11. Buy Locally
    Locally grown or produced food is often available at a cheaper price because you don't pay for long transportation costs. Farmer's markets, fairs, and the local aisle at your grocery store are all game for deals on tasty and fresh food.
12. Look Down
    Stores often place the most expensive items at eye-level. To find less expensive items, look down. Also, looking around your brand-name food can find you a cheaper generic alternative. Generic label products are often nearly identical to name-brand goods (in fact, they're often produced in the same factory), so don't pay for packaging when what you really want is the food inside.
13. Avoid the End Caps and Checkout Temptations
    Those displays placed at the end of each aisle often feature premium brands. Rather than grabbing those high-priced batteries or that extra box of cereal, walk down the aisle. Chances are good that walking a few extra feet will reward you with a less expensive option.
    Many grocery stores now offer checkout lines that don't feature candy. Using these lanes not only helps you avoid the temptation to spend your money on sweets, but it also encourages a healthier lifestyle.
14. Compare Prices and Stores
    Some consumers have trouble calculating the cost per unit in their heads, but it's something that gets a lot easier with practice. You can even carry a calculator. Looking at the brands and comparing prices is an easy way to shave a few cents off most purchases.
    The store that features the lowest average prices in your area is often the best place for routine shopping, but the higher-priced competitor may run sales on specific items that undercut the cost at your most frequented venue. Watch for these sales and take advantage of them when possible.
15. Shop for Sales
    As mentioned above, sales can be a great incentive to switch stores - but only if you need the items on sale. Pay attention to sales on necessity items and stock up on non-perishables and freezer goods. Keep an eye on the prices so that you know when a sale price is merely a small savings or when it is a significant discount to the normal price.
16. Watch "Best Before" or "Sell By" Dates
    As the "sell by" or "best before" date approaches, you are virtually guaranteed a discount. For example, grocery stores lower prices as meat ages. Ask the butcher when the meats get marked down. Most stores have a fairly regular schedule that you can learn and follow. When you get a good deal, stock your freezer so you can avoid buying when the price is high. And if you plan on freezing the food, "best before" dates shouldn't worry you; the product will stay fresh until you thaw and cook it.
17. Substitute Recipe Items
    If you have a higher-priced item that reoccurs in your favorite recipes, it may be time to shake up your taste buds. Often a lower-priced alternative can be found. For instance, if you consistently bake with olive oil and you see that the price has skyrocketed, a simple switch to applesauce (something that you might even be able to make if you have an apple tree) is a great cheap and low-fat substitution for many recipes.
18. Keep Your Kitchen Stocked
    A well-stocked kitchen means that you won't run out of staple items and need to buy them on the spur or the moment. Knowing what you have in the cabinet means that you can wait to make your purchases until items are on sale.
19. Shop Infrequently
    Reducing the number of trips that you make to the store each week or month reduces the odds of unnecessary purchases, and minimizes the amount of gasoline spent getting there.
20. Pay Attention To Time
    Weekly sales often run from mid-week to mid-week. Hold off on your shopping until after you've had a chance to clip coupons from the Sunday paper and you'll not only enjoy the sales prices but you might also get a coupon. Shopping during the evening or early morning also helps you avoid the crowds and spend less time in the store.
21. Pay In Cash
    When you put groceries on your credit card and don't pay off the card in full each month, you pay interest on the purchase. To avoid this extra cost, pay in cash when you shop and keep necessities off your credit cards.
22. Check Your Bill
    Electronic scanners make the shopping experience faster and more convenient, but scanners aren't perfect. Be sure to take a look at the receipt to make sure your coupons and discounts were taken into account.
    Shop Smart
    Food is one of those purchases that you just can't avoid, but careful shoppers can minimize the amount spent on this necessary purchase. All it takes is a little time, patience and effort.

Are You Really Pre-Approved for a Mortgage?

Source: www.About.com

Pre-Qualification, Pre-Approval, Loan Commitment..It's easy to be confused by the terms. Although related, the three terms each signify a different level of approval from a lender.

Pre-Qualified

You can be pre-qualified by a lender, by an agent, by yourself. The term means that someone has taken a general look at your income and expenses and plugged them in to a debt-to-income ratio formula. Loan pre-qualification does not include an analysis of your credit report or an in-depth look at your potential to buy a home.

Bottom Line: Pre-qualifying yourself before you start looking for a home will give you a general idea of the price range you can afford.

It will not nail-down an interest rate for you, and that factor and others will affect the monthly payments a bank will allow you to carry.

Pre-Approval
When you are pre-approved, it means a lender has looked closely at both your credit report and your income. The lender will tell you the maximum amount of loan they will offer, and which loan programs you qualify for. You'll also have a better idea about your interest rate, or you might lock-in a specific rate.

Bottom Line: Now you can go shopping for a home with confidence about your buying power--but it still doesn't mean the bank will approve the loan. Your income and credit report will be checked again before closing, and the home itself must be approved.

Loan Commitment
The bank will not issue a loan commitment until it has approved both the house and you. The home appraisal must meet the lender's guidelines--usually meaning the home must appraise at or higher than the sales price.

The bank may require more information if the appraiser mentions anything the bank feels should be checked.

A comment such as "observed a crack in the foundation and basement appears wet," will raise a red flag to the lender--and likely generate a structural inspection (which you must pay for unless the seller agrees to share or absorb the expense).

If the bank reads "home accessible only with a 4-wheel drive vehicle," you can be sure they'll want to know more about ongoing road maintenance. Where I work, we have thousands of mountain roads that are maintained by groups of home owners. Many lenders verify that there's a written road maintenance agreement before they will lend. Other banks don't seem to care as long as no derogatory comments are made about the road.

Other things that affect a loan commitment:
The home's title must be cloud-free, meaning there are no problems associated with it (no outstanding liens that can't be paid at closing; no right-of-way problems; no litigation in progress, etc.).

Your credit profile will be checked again to make sure it hasn't changed in a negative way.

Bottom Line: The loan commitment letter is issued only when the bank is sure it will lend, so the commitment date on your contract to purchase should normally be closer to closing than to the date you make the offer. The home seller can demand to see that letter as soon as the date has passed, so question anyone who tries to insert an early commitment date in your contract.

Since terminology sometimes differs in different regions, ask your mortgage officer to explain all of the terms associated with their approval process

10 Tips for Adding Value To Your Remodeling Project

By Louis Joyner Courtesy of the HBAA, part of the NHBASource: My Home Ideas/www.MyHomeIdeas.com

Get the most out of your home's next remodeling project by following these key ideas from the pros.

1. Good plans equal great result: Successful remodeling projects require careful planning and a realistic budget. "Many people want to build it cheap and fast," says builder David Lisenby, Certified Graduate Remodelor, of Lisenby Construction. "They want an estimate before they even have a plan." A solid strategy will ensure that the homeowner and the builder are on the same page, saving both parties time and money.
2. Quality counts: Potential home buyers have more sophisticated tastes than ever. That's why spending a little extra on good design, quality materials, and careful craftsmanship can garner big rewards when it comes time to sell.
3. Insist on coherent design: A good remodel or addition should complement the original structure. Pay particular attention to roof lines, window sizes and styles and trim details.
4. Meet expectations: What buyers want varies from area to area and from one price range to the next. Do some comparison shopping to see what your competition will be like should you decide to sell. And talk to a realtor who knows your neighborhood.
5. Consider the neighbors: The value of nearby houses affects the value of your home. Remodeling or adding on to a house that's smaller than surrounding homes will yield a greater value than adding on to a house that's already one of the largest on the street. A general rule of thumb: Don't overbuild for the neighborhood.
6. Get permission: Before starting any type of remodel, make sure the design conforms to all local building restrictions. Some neighborhoods also have their own stipulations and design review processes. Double-check that necessary building permits have been acquired before construction begins.
7. Build up to code: Plumbing, electrical, and building codes help ensure safety. Licensed contractors should perform work that meets all codes.
8. Exercise patience: If you can, wait for the right time to sell. "In a strong market, the value will catch up with the cost," Lisenby says.
9. Know the market: Some types of remodeling projects can return more than the average and also speed up resale.
10. Experience matters: Substandard work on your remodel is a buyer turnoff. "You don't want someone learning on your project," Lisenby says. "This is our business, year in and year out."

6 Steps To Credit Card Serenity

By Walecia Konrad

Source: www.Bankrate.com

We've become a nation dependent on plastic. Rent a car, buy a gift online, make airline reservations.

We think nothing of pulling out our credit card for these and hundreds of other transactions every year. That's not necessarily a bad thing. Credit cards can be a convenient and safe alternative to cash. But too often, before you know it, credit card purchases spiral out of control (to the tune of more than $8 trillion a year) with a simple swipe of the card.
Then, with high rates, fees, penalties, continued spending and the other pitfalls that can happen with credit cards, debt accumulates much faster than your ability to pay it down.
But that all too common and sad scenario doesn't have to happen to you. Whether you're carrying a balance of a couple hundred dollars or several thousand, take the following steps to get out of debt -- fast.

Know where you stand
When you're feeling overwhelmed by debt it's easy to let the bills pile up, unopened like so much junk mail. But, you can't control your credit cards if you don't have a handle on how much you owe, says Bill Driscoll, a financial planner in Plymouth, Mass. Sit down at the computer screen (or with pencil and paper) and make a list of exactly how much you owe and what rate of interest you're paying on each card. Then list your cards in order of highest rate to lowest.

Pay your highest rate cards first
These cards are the ones that are costing you the most over the long run so you need to make every effort to pay more than the minimum payment each month on these bills first. Find out the fastest and cheapest strategy to use to pay down your card balances.

Get a better deal
Call the toll-free number for your highest rate cards and ask the customer service representative if she can give you a better deal. Let her know that you've been getting offers in the mail for much lower rates and you've been tempted. At most credit card companies, reps are authorized to lower your rate rather than lose you as a customer, says Robert Manning, director of the Center for Consumer Financial Services at Rochester Institute of Technology. You'll be surprised how easily this works.

If you succeed, you'll soon notice your minimum payment is lower. Don't breathe easy yet, says Jean Chatzky, author of "Pay It Down, From Debt to Wealth on $10 a Day." Instead, continue paying the old amount and you'll see your balance shrink faster without any additional squeeze on your budget.

Consider using a different card
Hang on to all those zero percent and other low-interest credit card offers you've been getting in the mail. Done well, transferring your high interest balance to one of these cards can save you an enormous amount in interest and put you on a solid track to paying down debt. But these cards are filled with caveats that can end up costing you more in interest than you expected and sometimes more than if you had stayed put. Check the time limit for the low rate; where the low rate applies (balance or new purchases?) and the fee for transferring balances.

Beef up your credit score
If you're having trouble getting a no- or low-interest card, it's mostly likely because your credit score is too low. This number represents how responsible you are when it comes to handling debt. So if you have a history of late payments or are already maxed out on several cards, your credit score will suffer. To find out what your score is, use a FICO calculator to get a rough idea. It's free. Or, you can purchase your credit score from any of the credit reporting agencies or FICO. If it's below 660, you'll need to spend the next six months or so trying to improve that so you can qualify for a cheaper card. If you make all your payments on time over the next six months and aggressively pay down your biggest balances first, you could improve your score as much as 50 points, says Chatzky.

Avoid penalties and fees.
Interest rate hikes and hefty monthly fees can ruin even the best-laid pay-back plans.

• Late payment penalties. It's not unusual for your interest rate to jump to 25 percent or even 30 percent if you make a late payment. If you have trouble keeping track of your due dates, consider setting up an automatic payment from your checking account each month.
• Penalties for late payments on any card. Even if you pay on time, some credit card companies will hike your rate if they see you've made a late payment on another card. This practice, called universal default, is waning somewhat, thanks to pressure from consumer advocates, but it can still happen.
• Credit limit fees. If you go over your credit limit it's not unusual to get hit with a $40 fee. Do it a few months in a row, add the interest payment and you're talking real money.