Author Jane Bryant Quinn's Top 5 Money Saving Tips for 2010:
- Homes: Good buys, poor investments: House prices will rise only slowly in the years ahead. So don't take home equity loans, because the equity will be hard to replace. You'll build equity by paying down your mortgage.
- Don't give up on stocks: If you're investing for retirement, you need some money in stocks. Over the long term, they're the best financial investment. But don't be panicked in and out of the market. Stay there, reinvest dividends, contribute regularly.
- Watch for new credit card rules: A law was passed to end some of the credit card abuses, such as claiming you have a fixed-rate card when in fact the bank can change your rates anytime it wants. Or hitting you with penalty interest rates on past purchases. One thing to watch: If you go over your credit card limit, the banks used to hit you with a $25 or $30 penalty.
Now they can't do that unless you agree to accept overlimit penalties. What's happening is that banks are dropping the penalties, but if you go over your limit your card might be refused-as it was in the old days. The bank hopes they can then sell on accepting overlimit penalties again-but don't do it. Just keep track of your credit card limit and don't fall prey to abusive charges.
- Saving money: Not optional any more. Your home won't make you rich, there won't be a new stock-market bubble to make you rich. Wealth will come from steady saving, eliminating debt, and prudent investing. You want to be out of debt by the time you retire and your paycheck stops.
- Get a higher interest rate on your savings: The Internet banks like ING Direct and HSBC Direct are paying more than the average bank, with no fees and no minimum deposit. You can also go to www.bankrate.com for a list of the banks around the country paying high interest rates on CDs. All these banks are federally insured.
About Jane Bryant Quinn:
Jane Bryant Quinn is the author of the bestselling book "Making the Most of Your Money, Everyone's Money Book, and Smart and Simple Financial Strategies for Busy People."
Her career includes a column syndicated to 250 newspapers by the Washington Post, a biweekly column in Newsweek magazine, regular reports on the CBS Morning and Evening News, and an online column at Bloomberg.com.
For her latest opinions, visit her website janebryantquinn.com. She lives with her husband in New York City.
Join Jane Bryant Quinn for a Talk, Q & A, and book signing January 25 at 8 p.m. at the San Francisco Jewish Community Center:
3200 California Street
San Francisco, CA 94118
Phone: (415) 292-1200
Ticket Info: tickets.jccsf.org
