Saving money can really cost you.

Even when our economy isn’t in a recession, we all try to stretch our dollar.  Whether it’s by haggling, cutting coupons, or looking for the next big sale, we all have made efforts to spend less and save more.  With that being the case, what’s worth your time and what isn’t?

The next big sale
The word “sale” is certainly a buzz word to several demographics of people.  That’s why you see it in page-sized letters sprawled across a store entrance on banners, fliers, posters, etc.  Just because people see “sale”, they think they’re getting a bargain on items they’ve previously not shopped for.  Also, if a store’s markup is 300% and they have a “buy one get one half off” sale, they’re still making money on the item that’s half off as well as the item you’re paying full price for.  Or, if a store raises its markup from 200% to 350% and then has a 33% off sale, they’ve effectively raised their markup nearly 35% from the original 200% while still having a “sale”.  Be wary and shop even before you go to a big sale to make sure you’re getting the best value for your dollar spent.

Coupon Mania!
So you’re sitting on the couch on a lazy Sunday afternoon going through the day’s paper with a drink handy and the television turned on just to break the silence.  The sound of scissors can be heard and cut coupons start making a pile on the coffee table.  Does any of this sound familiar?  You could be one of millions of smart shoppers looking to cut the cost of your grocery bill.  Not only are you spending your own time by doing this, but you might be spending more money.  For example, saving 50 cents off of a name brand item that usually costs $4.99 is going to cost you more than buying an off brand that sells for $2.39.  Make sure that you’re not wasting your time when the better bargain is sitting on the shelf right next to your intended purchase.

0% Financing
This is certainly a great deal when you find it, but with any loan comes stipulations and potential risks.  In this case, pay close attention to the length of the term.  Some 0% financing offers only last 30 days; whereas, some may last 5 years.  Always try to arrange for what you’re buying to be paid off during the 0% term, or you could be paying as much as 30% interest afterward.  As always, the best bet is to save your money for what you want and then paying for it all at once.

Free Shipping
If you’re a fan of eBay^®, Amazon^®, or any other credible online store, you have likely seen multiple items that qualify for free shipping.  I have personally noticed some people marking the price of an item up and slapping a free shipping tag on it.  Studies show that shoppers are far more willing to pay for a $5 item with free shipping than an item that’s $2.50 with $2.50 shipping, so don’t let this tactic trick you into potentially paying more.  Additionally, some online stores require you to meet a minimum dollar amount before you qualify for free shipping.  If you plan on spending that much, that’s fine; however, finding one thing and then continuing to shop because you want to qualify for free shipping ensures the store has more quality sales and also ensures that you spend more money.  It’s better to go ahead and pay shipping costs than to buy things you don’t need.

The zig-zag method
When you’re looking for ways to save money, be sure to expose yourself to as many different stores’ prices as possible.  This is made inexpensive with today’s technology and the internet.  Most (if not all) retailers post prices on their website or in weekly mailers.  Mapping out the store that will save you the most money on like-items is often less expensive than getting a few things here and there at different stores.  That method often diminishes what you’re saving by way of fuel costs, inconveniences in store hours, and most importantly, your own time.

Saving money is not something that we can accomplish easily.  It means having a leg up on the ads and preconceived notions that stores have put in front of us and being savvy as a shopper.  Remember, if something sounds too good to be true, it probably is.

Haiti donations are now being accepted

In light of the devastating seismic activity in Haiti, we at Park Community would like to take this opportunity to express our sorrow for the victims of this tragedy as well as our willingness to help. Each branch (visit parkcommunity.com for a list of branch locations) will have collection bins that are specifically marked for Haiti relief donations. Additionally, the final total of donations we receive will be matched by Park Community up to $10,000! All donations along with the credit union’s matching dollar amount will be forwarded directly to the American Red Cross Haiti Relief and Development program. Together, we can make a difference!

Also, being that many places have begun accepting donations, scammers and con artists have jumped on the opportunity to rob people of the donations made in good faith by posing as false donation collection associates. Please donate only to trusted sources in order to maximize the efforts of you who are kind-hearted enough to sacrifice hard earned dollars for others who are going through the worst of times.

Selling and buying a new home can be taxing.

Thinking about taking advantage of the Repeat Home Buyer Tax Credit? If you qualify for the tax credit, it’s been at least 5 years since you went through the mortgage process. Here are some tips to help you survive the whole process.

1. Determine how much you can afford. No one wants to be house poor, and lenders won’t let you anyhow.
2. Start saving money for closing costs. You’ll need around $2,000 plus you’ll need to pay a year’s worth taxes and insurance up front.
3. Get your house show ready. Declutter your rooms and closets, fix what needs fixing, and paint what needs painting. You want your realtor to be able to say “move in ready” on your listing.
4. Get preapproved for your mortgage. Sellers (you’ll find this out) prefer to work with people who are preapproved.
5. Decide if you will build or buy an existing home.
6. Research and select a realtor to sell you house.
7. Sell your house.
8. Buy your new house.

Steps 7 & 8 are the hardest. Timing is so crucial in these steps. Ideally, even if you have to move into an apartment or in with family, it’s better to sell your house first than end up with two mortgages. If you don’t, many builders will not work with you and if you find an existing house, you’ll have to do a contingency offer.

Park Community is always here to help you with any mortgage questions you may have. It’s a lot to take on in one year, but we’ll do our best to make the mortgage process easy.

Filing your taxes early this year?

If you’re one of the millions of Americans who are counting down the days until you get your tax refund, you may have to wait a little longer than usual this year.  This year’s tax regulations allow financial institutions until February 16, 2010 to mail out your tax information to you.  The previous date was January 31st. 

You might be thinking “I thought tax season was in April?”  That’s only the deadline, actually.  You can file as early as January 15.  The benefit of filing early is simple if you’re entitled to a refund: you get your refund more quickly.  Additionally, if you efile, you should get your deposit within a couple of weeks rather than the month or so it takes for you to get a check in the mail.

The downside of filing early is  that you may not have all of the information you need to get the maximum return you are entitled to.  This would apply mostly to investors.  Also, there’s a possibility that there’s an error on your W-2 that may be corrected with an updated statement.  This would cause you to have to file an amended return and potentially create headaches if the refund you receive is more than what it should be.  Other things to look out for while considering filing early are outlined in this article.