If you’re already into budgeting and have drawn up a monthly plan that tallies up regular expenses, good for you. If you’ve also figured in miscellaneous items like entertainment, even better (saving is hard, but you should still be allowed a treat now and then). But are you tallying up everything?

Sometimes, we forget about these expenses that don’t occur every month. They may occur only every few months or once a year. If they regularly recur, however, they need to be figured into the monthly budget. These aren’t “surprise” expenses — you already know about them and not counting them can seriously mess up your finance plan.

Any of these can fall into recurring expenses:

• Termite bonding and inspection for homes
• Beauty salon treatments
• Oil changes for the car/truck
• Buying start-of-school supplies
• Pet checkups/grooming
• Dental visits

There’s plenty more out there that may apply to you individually, but the point is, many of us don’t factor these in to our monthly budgets because they don’t happen every month. Here’s where it can hurt you:

Say you haven’t factored in any of the above expenses. Using what I typically spend on these, here are my figures:

• Termite bonding and inspection for the year: $500
• Hair cut and color: $80; five times a year: $400 
• Oil changes plus tire rotation: $50; four times a year: $200
• School supplies for two kids: $150
• Pet shots once a year: $100
• Pet grooming six times per year $45 each; over a year: $270
• Dental visit: $30 office fee (with insurance coverage); twice a year: $60

That’s $1680 over the course of a year or $140/month. If you’re on a strict budget that leaves no room for errors, $140 is a lot of money. Worse, what if an emergency happens and although you have some savings set aside, you’ve factored this money into that savings instead of factoring it into your monthly budget?

If you really want to know how much you spend every month, it’s important to figure in your recurring expenses. This way, you won’t end up one month wondering why you’re $60 “short.”

In case you didn’t already know this due to all of the foreign cars on the roads, U.S. car buyers “are growing less satisfied with their purchases from domestic automakers.”

Lexus, BMW, Toyota and Honda lead the pack in a customer satisfaction survey — no American makers in sight.

At some point and time, I think we’ve all spent money on something and thought later that it was a stupid way to spend it. But what about all the money we waste without thinking about it? We don’t even get to regret it because it’s almost like it unconsciously floats out of our accounts. Are you wasting money in any of these 3 dumb ways?

1. Unnecessary bank fees: In my next life, I’d love to come back as a bank. Goodness knows, I’d be rich just from collecting fees from my customers. These fees can come from:

• Writing more checks than you’re “allowed” that month
• Using ATMs outside of your bank’s network
• Not maintaining a minimum balance
• Arbitrary maintenance

I’m sorry, but I think it’s crazy to have an account at any bank that charges you fees for these things! Because all banks do not do this. There actually exist some banks who don’t nickel and dime you and trust that you’re adult enough to write the number of checks you want to each month. Loyalty is one thing, but handing over money when you don’t have to is reason enough to break up. 

2. Credit card fees: If you’re with a credit card company who charges you an annual fee, ask yourself why. Why? When there are other companies practically jumping up and down to lure you in give you a card with no annual fee? I know that a lot of secured credit cards come that way; if you’ve had credit trouble in the past and this is one way you’re trying to rebuild your rating, you may only be able to get a secured card. Do your homework and find a card with a low fee, but that also comes from a reputable institution, such as a Top 10 credit card issuer. And above all, don’t make late payments. That’s usually $30-$40 you’re handing over, even if you’re a day late.

3. Avoiding coupons: Some businesses are actually trying to help you save money these days, so why would you avoid them? It may take a little more time to take advantage of coupons, but it’s worth it. In the Sunday newspaper, in your mailbox, online – coupons are readily available. If you still don’t want to take the time to cut them or print them out, at least sign up for a grocery store card. They’re almost always free, you can get a keytag version to clip onto your keychain instead of digging it out of your wallet and the store sends you flyers to alert you to upcoming specials.   

No one said saving money was easy; sometimes you really have to research and do the legwork to figure out how to do it. But keeping your hard-earned money instead of wasting it in one of these three ways should be way more satisfying than being “convenienced” out of it. 

With the economy being what it currently is, many people are thinking about (or already are) tapping into savings, in some form or another. Whether it’s your regular savings account or your 401(k) plan, money is money when you’re strapped. It can be extremely tempting to dip into your 401(k), but here’s why you should resist if at all possible.

Times are tough now, but imagine how tough they’ll be if you get to retirement age and you have no savings. Basically, that’s what your 401(k) plan is — retirement money. In addition to what you put into your 401(k) account, many companies will match at least a portion of your money, so it’s almost like getting “free money” placed into your savings. You choose the percentage up to a certain amount and where you want to invest your money.

If you’re younger than 59 1/2, there are severe penalties for withdrawing money from this account if you’re still with the same employer, mainly a high tax percentage and having to pay state and federal taxes on the amount you withdraw.    

If you want to get the most out of your 401(k) plan, you should:

• Start as early as possible. The sooner you start, the more money you can accumulate and you won’t have to  play “catch up” later to secure that nest egg
• Contribute the maximum amount. Because this money is taken directly from your paycheck before you get it, get into the mindset that it’s not even there. Even giving the highest percentage your company allows won’t be missed if you accept that the money isn’t there for you to spend.   
• Invest wisely. You’ll likely be able to choose where to invest your funds. Instead of wearing a blindfold and playing “eenie meenie miney mo” before picking whatever your finger lands on, get some information on investing so that you make smart choices. The better you invest, the more you can earn.

If you absolutely have to get some money somehow and your 401(k) plan is the only way you know how, look into borrowing from the plan instead of withdrawing. In some cases, borrowing isn’t as penalty-laden as withdrawing, but you’ll have a time limit to repay the loan before it shows that you’ve defaulted on it.

Bottom line: Make your 401(k) work for you by always adding, not deducting.

No matter how diligent you are about recycling, there are people out there who aren’t as diligent. When you consider the number of plastic water bottles that are thrown away and carried to landfills day after day (to survive like cockroaches survived the Ice Age, never to die), you might want to get your water out of something other than the long-living plastic bottle.

Reportedly, American landfills receive about 38 billion water bottles each year! Not only that, but the production of one billion bottles requires over 24 million gallons of oil (no wonder we’re in an energy crisis). I know sometimes people think “what can I, one person, do to make a difference?” and it seems as if you can’t make an impact on such staggering numbers, but just like pennies, every little bit of effort adds up.

Here’s an example of how you can save money and the environment, too:

1. Cost of 24-count 1/2 liter bottles at Costco: $6.97

If you drink water like you should for the health benefits, this case can last you about six days, maybe less if you’re very active and take in more than the suggested eight cups per day.

Cost per month - $34.85

Total cost per year - $418.20   

2. Consider a reusable bottle like Brita’s FilterForGood.

You can pick up one of these bottles for around $11.00 and it’ll last indefinitely. For people who don’t like to drink tap water, you can buy filtration systems, either in pitcher form or faucet mount form. This will cost around $26.00-$40.00. Filters need to be replaced about every two to four months at a cost of $9.00-$25.00 per replacement.

Let’s add this up over the course of a year:

Cost of reusable bottle - $11.00

Filtration system - $26.00-$40.00

Replacement filters - $54.00-$75.00

Total cost per year: $91.00-$126.00    

As you can see, you can save nearly $300 or more over the course of a year by ditching those individual disposable bottles and opting for reusable. Yes, there will be additional water on your utility bill for the amount you use to fill your bottle daily, but chances are good that it’s less than $300 per year.

Save money: check

Save the environment: check

Stay healthy: check

Put the money you save into an interest-bearing savings account and get even more out of your environmentalism. I think that’s reason enough to look into reusable bottles, don’t you?

Today’s lesson is a study in willpower. Don’t worry, it’s not hard, though some may have a harder time with it than others. Still, if you’re plagued with buyer’s remorse because you make so many impulse purchases, only to regret it later when you get that whopping credit card bill, here’s something you can try. I call it the 24-hour rule.

You see something you want. It’s not a necessity, but you crave it. It can be something relatively inexpensive or maybe something big. The point is, you want it and you want it now. Can you walk away?

If you summon up some willpower, you can. I’m not saying that you shouldn’t buy it — part of being mature about your finances is treating yourself from time to time and knowing when to do it. But what you should do is think.

Go home and think about that thing you want. Get out a piece of paper and make two columns: pros and cons. What are the pros of you buying said item? What are the cons? For example, say I want a $100 pair of running shoes.

Under my pros, I’d list:

1. Good for fitness

2. Investing in healthy lifestyle

3. Can afford to pay with cash 

Under cons:

1. A little more than I want to pay

2. Last pair of shoes still in good condition

You may have a pro list 10 items long and a cons list of 15. It all depends on what it is and what the benefits and disadvantages of you buying it are. If the pros outweigh the cons (especially if one of the pros is “can pay with cash”), chances are you can buy it without feeling guilty. If one of your cons is “have to charge on a high-interest/almost maxed out card” that’s a huge reason to not make the purchase.

After that, take a day to mull it over. I’ve used this tactic since getting financially smarter and in nine cases out of 10, after thinking over it for a day, I decide not to buy. And I realize it was the right thing to do because I don’t miss not buying.

In one instance, I did make the decision to buy. I saw a shirt for $50.00 and I loved it, but I didn’t want to pay $50.00 for it. I went home, thought about it and decided not to buy. A few weeks later, I went back to the store and the shirt had been marked down 50%. At that point, I bought it. I was able to pay with cash, too. I know that’s longer than 24 hours and in some instances, the shirt would’ve been gone, but I knew I could live without the shirt.

Most stores will hold things for you for a day, so there’s no harm in asking and waiting that long to see if you really want it. If, after a full day, you’re still dreaming about that item, go ahead and buy it…so long as one of the cons is not placing you further into debt. 

Many homeowners think about refinancing at one time or another. They want to pay off loans or they need money to make home improvements. Whatever your reason for considering refinancing, there are some things you need to know before you sign on the dotted line. 

1. Why are you refinancing? This is an important question you need to have an answer to. If it’s to pay off high-interest loans, that’s a valid concern, but if it’s simply to take an expensive vacation or buy a luxury item that’s not a necessity, you may be putting yourself further into debt with nothing to show for it. There are good reasons to refi and frivolous ones and you should only refinance when the pros outweigh the cons.

2. Are there penalties? There can be a lot of rules and information tied into your current mortgage that seems translatable only to someone versed in real estate law, but it’s in your best interest to know exactly what the fine print on those documents mean. You may have to pay stiff penalties for paying off your current loan early, penalties that are so high that refinancing isn’t cost-effective.  

3. Is your interest rate fixed or variable? This is one of the more important points and is tied into how long you plan to live in your home. Many homeowners who end up in mortgage crises signed on with adjustable rate mortgages whose introductory rates were attractively low; they may or may not have had the intention of selling within a few years. Before they’re able to make any moves, the interest rate goes up, they have trouble making payments and the home goes into foreclosure. Fixed rates are generally more favorable, depending on the next point…      

4. How long you’re going to stay in your home – If you’re in the home of your dreams and don’t plan to move anytime soon or ever, a fixed rate mortgage is your best bet. Adjustable rates only really benefit the homeowner when they plan to be out of that home before the rates have a chance to rise significantly.

5. How many points will you pay? This is an area you need to really research to see if refinancing is worth it. Points are percentage points of the value of your loan. You may think you’re getting a great deal with a zero points mortgage, but is the interest rate higher to make up for no up-front cost?   

6. Who will do your refinancing – You may have received one of those tempting offers in the mail and are thinking of trying out Bank B instead of your current mortgage lender. Don’t be so hasty because the grass isn’t always greener outside of your bank. Because you’re already familiar with your financial institution, you have a reputation with them and they know you as well. It may be simpler to stick with the business who already has all of your documentation on hand. 

7. Will you come out ahead? – The only way you’ll know this is to sit down and fiddle with the numbers. There’s a minimum amount of time you’ll need to stay in your home to break even. Use a refinancing calculator to help you calculate how much you’ll save by refinancing and how long it’ll take you to recoup your costs.     

8. Is the interest rate percentage difference worth it? If you can get a minimum two percentage points difference in your rate, refinancing may be worth it. Again, you won’t know by how much until you do those calculations.   

9. What will you do with the additional savings? If you’ve already done the calculations to figure out exactly how much you’ll save, good for you. But where are these savings going to go? If you plan to pay off loans, good. If you plan to buy that backyard pool that will add value to your home, good. If you don’t know what you’ll do with the additional savings, it’s time to sit down and evaluate…

10. Are you willing to do the homework? No one said refinancing was going to be easy. Clearly, there are quite a few informed steps you need to take before you even get to refi. Instead of taking the first offer that comes your way from a bank that’s unfamiliar to you, research them as well as your current bank and several others before making a decision. Before you sign anything, read the fine print; if there’s anything you don’t understand, don’t be afraid to ask questions! That’s what the professionals are there for – to answer them. If someone isn’t willing to explain things to you or want you to make a decision right now, run, don’t walk, out the door.     

Guess which top-selling car on the road today gets you 48 mpg in the city and 45 mpg on the highway? Hint: It’s a hybrid.

The Toyota Prius wins top honors as best-selling hybrid and most fuel-efficient. If you already drive a Prius, you have my congratulations. I long for the day I can zoom around town in a hybrid car, but until they make one large enough for my family of five to comfortably fit in, I’ll have to keep driving my gas-guzzling minivan (by the way, for anyone who’s waiting for the hybrid minivan to hit the market, there’s whispers on the horizon that one is coming, but which maker will be first?).

In these days, fuel-efficiency is a priority. Car dealers report people trading in their SUVs for smaller cars that are better on gas mileage. Who can blame them? Although summer’s peak driving season is over – and gas prices have “mysteriously” dropped now that kids and their parents aren’t traveling to vacation destinations as much – many of us still have to drive.

If you’re in the car-buying market, which cars should you look to for the best fuel-efficiency?

• Honda Civic Hybrid
• Toyota Corolla
• Nissan Versa
• Honda Accord
• Honda Fit station wagon
• Volkswagen Passat wagon

If you look at the rankings by the EPA, you can see just how much hybrids outperform gas-only cars in mileage.

But what about the wait? I often hear that people wanting new hybrids have a four-to-six month wait ahead of them, so if you’re impatient by nature, you may have a hard time with this. Still, it gives you plenty of time to say goodbye to your current car, which, even if you love it, must not be perfect if you’re even thinking of going the hybrid route.

With hybrids only becoming more popular, I wonder what the status car will be for this generation? Maybe not a Porsche, but a Prius.

If you’re already a dedicated discount store shopper, this won’t really surprise you. I love a good bargain, so I always check for sales and comparison shop and do all of those other things that previously, a lot of people saw as a waste of time, but with the economy being what it is, are now seen as essential for surviving.

It’s back-to-school shopping season and what a difference a year has made. Look at this:

• 2007 - 74% of households shopped at discount stores for back-to-school supplies
• 2008 - 90% of households shopped/plan to shop at discount stores
• 2007 - 11% of consumers who said they’d buy school products at full price
• 2008 - 1.5% of consumers who say they’ll buy products at full price

 This is a major shopping season for retailers, second only to Christmas in terms of spending. When you consider that consumer spending accounts for about 70% of economic activity, it’s easy to see how the way we spend (or don’t spend) money affects the economy.

Still, people are trying to save where they can and spending will probably be down about 2% this year for back-to-school shoppers. To help you save even more on all of the various supplies your kids will need, try these retailers for the best bargains:

1. Walmart - Their advertising may not be as slick, but what they save in ad dollars, they pass on to consumers. Now is a great time to shop because school supplies are heavily discounted. Plus, because many of the stores are open around the clock, you can shop at whatever hour is most convenient for you.

2. Target - Cute ads and better customer service add up to higher prices. Still, now’s a good time to shop because Target is trying to compete with other retailers in the back-to-school market. As with Walmart, you’ll find items like glue sticks, rulers, pencils, crayons, markers, etc. cheap.

3. Office Max - The prices here tend to be higher, but with the bag insert in many Sunday newspapers, you can save 15% off whatever you can fit in the bag. Plus, they’re running a penny promotion now, so you can pick up some items and get a second item for $.01.

Take your child’s school supply list with you and mark off items as you get them. There is really no point in trying to shop without that list — you’ll probably overspend or pick up the wrong items. Walmart and Target stores tend to have a school shopping area set up, so make a beeline for that special spot and stick to your list. If you can, buy a little more than what you need because that same pack of pencils that costs $.50 today will be $2.00 in two months time.