Tips and Tricks 1: low-income, poor credit survival basics.

This is first “real” post of trips and tricks for those one a tight budget, or those who have bad credit.  These are basically quick bullet point hacks which you may find useful.  Hopefully, these will hit a nerve with someone, and word will spread what this blog is all about:

• -          If you’ve had checking account problems, order a copy of your Chexsystems, Telecheck and Certegy(EWS) reports.  Banks and credit unions use this to grant accounts and, while many will deny based on negative info, many will allow new accounts, but it extreme restrictions and higher fees.  You have the right to dispute anything on these reports.  Chexsystems has a self-imposed FOUR-YEAR limit on negative info reported.
• -          A savings account is intended for one primary purpose – a place to stow money where it can’t be accessed easily.  If you want to be able to put cash aside for a rainy day where it’s a big pain to get at, this is the way to do it.  Check for fee-free offerings at local credit unions and small banks.  Big banks tend to be fee-happy.’
• -          Avoid, if possible, the “overdraft privilege” a bank offers unless you have a good understanding of overdraft procedures and timing.  When used properly, this privilege can be leveraged as a low-interest payday loan.  When used and timed wrong, it becomes predatory and highly punitive.  If you don’t think you can budget effectively, opt out.  The minor embarrassment and pinch of being declined for that coffee or impulse buy will save you a TON of cash on payday.
• -          Try to avoid credit cards until you have two weeks worth of pay set aside for an emergency.  Most experts recommend a $1000, but this is highly unrealistic for paycheck-to-paycheck individuals.  Two weeks is a good number because it’s a “replacement check” in the event income goes sideways.  Yes, it’s difficult, but it can be done (change jars are great for this).
• -          Never let a bill collector of any kind get away with intimidating you into paying on something you don’t owe.  Knowing yours rights is as simple as looking at Bankrate's statute list.  That will be a topic for a future blog post.  Get everything in writing.
• -          If you use your car for local driving, buy used tires when possible unless you can catch a “get two free” deal.  And read the “road hazard warranty” for exclusions.  These are becoming more and more loophole filled, and many tire stores (and well as big-box retailers) are finding ways to either exclude certain things, or tack on added fees to recover lost revenues because these have become so popular.
• -          Manufacturer recommendations for routine maintenance is notoriously conservative because it generates money for dealerships.  If you’re out of warranty on your car, going 1000 miles over before your next oil change isn’t a crime.  If you can afford a one-time synthetic change (they are pricey), do it.  The chemical nature of the lubricants are far more forgiving than conventional products.
• -          If you have a friend who is a mechanic or knows a mechanic, give them your business.  Repair shops compete like crazy, and finding a loyal customer who trusts them is difficult.  Most important, that friend can usually get you a good deal, or tell you some things to watch for if you have to leave town and hit a repair shop.  If you have a "backyard mechanic" friend you can trust on minor repairs, spoil them rotten!  They will save your butt in a pinch.
• -          If you live on your own or you’re a couple with no kids, “meat is murder on a budget” is true.  After alcohol and cigarettes, meat is the single most expensive part of any grocery bill.  Buying “freezer packs” may be useful for families, but for individuals and couples, it’s unrealistic.  Shop sales and specials.  Buy “manager's specials” when possible, and cook the same day.  You usually save a ton of money this way, and it forces creativity and, honestly, tastes a lot better.
• -          Thanks to extreme couponing, many stores have eliminated double and triple coupons (mainly because tax laws don’t allow certain write-offs).  A great way to make up for this is to research store-versus-national brand ratings.  Often, the store brand is better and costs less.  In some cases, a clear superiority is found in the national brand, and that’s when buy-on-get-ones are essential.
• -          The pennies-on-the-dollar rebate is useless for “Earth friendly” bagging (using your own bags).  For produce, it can also introduce bacteria to the food.  Also, if you have pets, get a mix of paper and plastic.  Paper sacks are excellent for soaking up the smell of pet waste, so dog poop and used cat litter can go straight in and minimize house odors.
• -          Online shopping is both convenient, and risky.  Use an online payment service like Paypal when possible.  The protections are worth it.
• -          While it can be a pain, “direct to store” shipping options are great if you can time errands and shopping runs simultaneously.  It saves gas, shipping and often you can get deals you can’t find in the store.

Here is one bullet point I saved for last, and cannot be understated.

• -          If you are in financial pain, and you can’t do what your longtime friends who are better off do, you will eventually lose some of those friends, unless they have open minds.  This is a fact of life and something which must be accepted.  It hurts, but it is part of life, and it is a painful reminder that people are imperfect and, being so, tend to associate with like-minded and better-off individuals.  To everything there is a season, and if you are truly committed to changing your situation, you will enjoy your time in the sun.  Think of it this way – you develop an appreciation for what you have, and those who stand by you in this darkness – even if it’s only on occasion – are the true friends in life.  While this will sound ridiculous to say, be grateful for this darkness.  You never know how strong you truly are until you have to start over from nothing.  Most people never have to endure this, and your experience will be that of a sage when they need your help and guidance most. Above all, never judge - we are human, and forgiving yourself for mistakes allows you to forgive others, and that will bring great people into your life.