I’ve always been the type of person who learns through experiences. I learned how to pay bills by actually paying bills, I learned how to code for websites by sitting down and doing it, I’ve learned how to teach through substitute teaching. Experiences to me are the best way to learn. Now, everyone learns differently, of course. But I wonder how true financial experiences alter people’s habits.

For example, for those people short selling their houses, are they learning that they shouldn’t have bought a house they really couldn’t afford? Or, are they day-dreaming of purchasing another house in the near future? What about a person who’s maxed out their credit card? Have they learned they need to limit their expenses and pay down their debt? Or what about a person who has recently been hired after a year of unemployment, are they saving more of their income for a “rainy day”?

My wonderings aren’t random; they’re based on personal experiences or discussions I’ve had recently.

Take for instance this scenario:

A family is short-selling their house. They’ve loaded their kids up on holiday gifts and have made sure to buy them everything on their list. They don’t have any solid future plans in terms of housing arrangements, but are sure they can purchase another house in a year or so.

Of course, I’m not in this situation, so I can only predict how I would react. Yet, I can guess that I’d make a plan that looks similar to this:  I’d pare down the holidays and explain to the kids money is tight this year so don’t expect everything on your list – this is a teachable moment as well.  I think I’d be sitting down with the bills and figuring out where I can save money and how I can make more money to begin adding to an emergency fund. Next , I would be pulling credit reports and figuring out how damaging a short sale will be to my credit score.

Given this scenario, I’d take it as a “life lesson” and learn from my mistakes. Don’t spend more than you earn!

Because we live in a society where we don’t talk about money to our friends and family, we think everyone’s in the same boat and that’s not always the case. Talking it out with others and coming up with resolutions to problems is a first great step. Though many of us might have to learn “the hard way” or through personal experiences, it doesn’t mean these experiences will have to repeat themselves. However, if the lesson wasn’t learned the first time around, there’s always the possibility of a repeat occurrence. And that just isn’t smart.

Have you had to learn financial lessons the “hard way”? What have you done differently to make sure the same mistakes don’t get repeated?

This post was originally published on October 21, 2009. However, some of my best posts were written within the first few months of blogging when I had only a handful of readers. Enjoy a blast from the past… (can you tell I’m swamped this week!)

My husband and I love watching movies at night, thanks in part to Netflix, it’s really easy for us to download a new or older flick. However, we have noticed a disturbing trend in movies, even those that are 20 years old or more. The characters in films, whether they are broke, middle-class, or wealthy, have beautiful homes. It doesn’t matter if the character in the film has a high paying job, or a minimum-wage salary, or is out of work, they somehow own a substantially-sized home. How can this be? Basically, as my husband so eloquently put it, the film industry is selling us the lie of the American Dream.

Whorush: 5 sites by this AdSense ID

Whorush: 5 sites by this AdSense ID

Let me begin by saying that I know a few years ago, with the whole mortgage fiasco, many people were able to purchase a home well above their financial means. So, perhaps 20 years ago, it was a similar situation, which is why we also see this trend in older films as well as newer ones. I know films also exaggerate life, and films only want to show us what we want to see. According to tinsel-town, the American public wants to see all families living in large, beautiful houses. So, the lie perpetuates because we want it to.

Yet, it got me thinking, is this American Dream something that is a reality for most people? Does the film industry take the majority of the population’s living situation and just expand it for all it’s characters? I did a little homework on BestPlaces.net to check the percentages of home ownership across the nation in a few different cities and this is what I found:

• First, I took a look at Los Angeles, CA, since this is the county I live in. The home ownership rate here is 37%, compared to the national average in the United States of 64%. Okay, so this makes sense considering the high cost of property. What doesn’t make sense is the recently released movie, Smother, (a really bad movie, by the way) showing a young couple owning a beautiful Craftsman-Style home in Los Angeles on a beautiful tree-lined street. In this movie, the character’s include a wife, that is a teacher (we all know that teacher’s aren’t wealthy by most standards), and a recently laid-off husband, who goes back to selling carpet. My take: Selling the American Dream by Lying. (Two other movies off the top of my head with similar scenarios that take place in LA: I Love You, Man and Big Trouble : outrageous homes on a small income).
  
• I then compared Fargo, ND, whose home ownership rate is 45%, to the national average of 64%. One of my favorite, slightly older, movies is Fargo. According to BestPlaces.net, less than half of the people in this city are homeowners, so again the reality of all the movie’s character’s living in a terrific home is off. My take: Selling the American Dream, though the freezing cold winter’s may keep some people from settling down permanently.
• A more realistic view from a film that I like would be Singles, a movie about single people living in Seattle (again a film from the early 1990′s). The characters in this film all rent apartments and struggle to meet a life partner and pay the rent. According to Bestplaces.net, this is a more realistic view with the home ownership percentage at 45%. My take: A realistic perspective of young 20-somethings and early 30-somethings trying to keep their heads above water and get their life figured out.
• Another city I compared is Albuquerque, NM, with a home ownership rate of 56%. You could almost call it Americas Home Place since more than half the residents own homes. I recently watched Sunshine Cleaning, set in Albuquerque, NM. The film stars the lovely Amy Adams (from Enchanted). The house the main character owned was quite a fixer upper, but it made sense considering she was a single mom who cleaned houses for a living. My Take: a much more realistic version of life, which is refreshing in a film.

Sunshine Cleaning - a more realistic life view coming from the film industry.

Of course, I’m not quite sure where Bestplaces.net came up with the national average figure of 64%. Each city I researched, and there were quite a few others that I didn’t list, kept coming up around the 50% range. There must be one state in which the majority of the population owns homes, but I didn’t find it.

Do any of you notice this in films you like? Do you ever find yourself sneering at the characters saying, “How did you afford that lifestyle and that house on your meager income?” Do you think the film industry is purposely selling the American Dream or just trying to lift our spirits and give hope to those that haven’t achieved it yet? I’m I being too cynical, or obessing over this topic?

As a savvy shopper, I make sure to hunt down coupons anytime I can to save money on online or brick-and-mortar purchases. Yet, even some of the most unusual purchases offer discounts with a little deal hunting.

Take for instance, ordering business cards through an online printer or using GoToMeeting to share files and make design selections. One of my clients loves GoToMeeting; he can quickly view my computer screen from his home computer and tell me what he likes or wants to change on his website without having to drive 45-minutes to our home office.

One great place to find all kinds of deals and savings is through DealTaker.com. Not only do they offer savings on consumer goods, they also offer savings on services. If I wanted to sign up for GoToMeeting and make this a permanent way to complete business transactions, I could take advantage of DealTaker.com’s GoToMeeting coupon code offering of 20% off a purchase plus a 30-day free trial. That’s a great incentive! And this comes in handy when I’m traveling or away from my desk for any significant amount of time.

When ordering business stationery or postcards, PSPrint is my online printer of choice. It’s hard to find a coupon for this vendor that doesn’t limit it to first-time only purchases. DealTaker.com offers a large selection of discounts which don’t exclude repeat customers.

I have the ability to search for the best deals by category or by vendor, making the navigating experience easy. Their coupons are easy to use as well and clearly list the expiration date.

DealTaker.com makes finding deals simple and will come in handy this weekend when I rent a car for a short East Coast trip. Having a coupon code available at the touch of a few keys makes purchases less stressful and keeps my pocketbook fuller.

What coupon experiences have you used lately?

Love them or hate them, credit cards are used by millions and millions of people on a day to day basis. If you use them the right way then credit cards have their advantages but you have to be disciplined with the amount your spend on your card and you have to know your repayment strategy.

Successfully managing your credit card starts even before you have had your application accepted. You need to know that your credit card suits your needs; this may depend on the type of credit card or on the various advantages that a particular card offers.

Ask yourself why? Why do you want a credit card and for what use? Do you want one for emergencies or for transferring another credit card balance to avoid paying interest? These are all questions you need to ask yourself before filling out an application form.

When choosing a credit card try not to fill out an application on impulse based on introductory offers. Take your time and read through exactly what the credit card offers, what are its advantages? An example could be 6 months interest free on purchases, but make sure you check what the interest will be after the 6 month period has ended.

Once you have filled out your application and you are using your credit card on a regular basis, you should always make sure you meet your monthly repayments, and if possible do so a week before your payment is due to show that you reliable and trustworthy to your card provider. This may result in you being rewarded with a lower interest rate in the future.

Not meeting a credit card repayment even for just one month can leave you with red markers on your personal credit record, this can make it harder for you the next time you approach a lender for funds.

I like to stick to a simple rule where I never use a credit card unless I have to; if you have cash on you then why would you use your card? It’s so easy to just hand someone your card and enter a pin number, I bet if you had that amount on you in cash you would think harder before making a purchase!

If you do decide to use your credit card for whatever reason, then setting up automated payments can be a huge advantage. Set up automated payments from your bank account so that whenever you have a balance to be paid; it gets paid off without you lifting a finger, this way you’ll never miss a payment.

Being able to manage a credit card successfully on top of all your other financial commitments including your debts and savings can be quite a challenge, it takes organisation and discipline but if used correctly and for the right reasons then a credit card can be quite a good personal finance tool.

This article was written by Andreas, a financial author for Money Supermarket, a UK based comparison site.

Personal finance sites are full of advice about how to save money and make the most of your disposable income, yet even in the world of frugality there is such a thing as going too far. Here are ten giveaway signs that let you know if you need to cut back on cutting back…


10 – You tell everyone how much you paid for things.

If someone compliments you on your new jacket, do you say things like “Thanks, it was only $9.99 on sale!”? Unless someone asks you what you paid for it, it’s really not necessary to tell them. It’s a dead giveaway that you’re watching your pennies a little too closely.

9 – Online Banking is your favorite social network.

Logging onto your bank account to check your savings is fine once in a while, but when you start to check your balance more often than your email, it’s a sure sign that you’re becoming a savings obsessive. Try to only check it once a week, you might start enjoying your money a little more.

8 – You stop getting invited out.

While a good friend will understand if you’re counting the cents, even your BFF will start to lose patience if you keep conveniently going to the bathroom when it’s your turn to buy the drinks.

When you start getting out of the shared taxi early to avoid paying your half of the fare, it’s time to decide which is more important – good friends or a few extra dollars?

7 – You smell.

Deodorants and soaps don’t cost the earth, so if there’s ever an area you shouldn’t cut back in, it’s personal hygiene. Yes you can do the simpler things like press several old slivers of soap together to make a bigger one, but for the sake of everyone around you, don’t go too far!

6 – Your house resembles a jumble sale.

It’s all; very well keeping hold of something that could prove useful in the next month or two, but when you have lonely socks and last year’s newspapers littering your home, it’s time for a clear-out.

You really won’t miss that old broken telephone or the collection of dead batteries!

5 – There’s more penicillin in your fridge than in the local pharmacy.

When you can’t tell the difference between the Cheddar and the Stilton in your refrigerator, it may be time to think about spending some of that hard-saved cash and going a bit of grocery shopping.

Eating mold isn’t good for you, and even cutting it off won’t be totally safe as it can get deeper than the surface of the food.

4 – You have no idea who your doctor is.

Healthcare can be costly, but if you don’t seek medical advice when you need it because you didn’t want to pay for health insurance, you’re really taking the frugality thing too far.

3 – The word ‘credit’ makes you break into a cold sweat.

Without a credit history it’s difficult to get accepted for utility services, rentals and a lot of other things. It’s worth taking out a credit card and using it sparingly as it’s a quick way to build up a good credit score.

If you can get a card with a 0% balance transfer fee you can avoid paying interest for months, so you’re still saving money!

2 – Charity begins – and ends – at home.

When you see a charity collector on the street, what do you do? It won’t hurt your savings balance if you drop a few cents into a collecting tin once in a while.

It will also help you to remember that there are people worse off than you, so it’s OK to enjoy your money sometimes.

1 – Your life revolves around your wallet.

What’s a regular weekend activity for you? Spending time with the kids on days out, or cutting out coupons by candlelight to save money on groceries and electricity?

Let your wallet see the light of day occasionally and treat your loved ones (and yourself). You deserve it after all your cutting back!

Louise Tillotson is a financial writer for UK comparison site Moneysupermarket.com. Follow her on Twitter: @louisetillotson.