By David Plowman

As the internet becomes increasing popular, so does the on-line shopping. In fact, according to a 2003 report from the census bureau, more than one-third of Americans have shopped on-line, compared to just 2.1 percent in 1997. As more and more people get gain access to fast, inexpensive internet service at home, that number will only rise.

But just as Americans are becoming increasingly comfortable turning to the net as their source for music, CD’s, clothes, and even groceries, another group of people are hoping to exploit that comfort.

Scammers and con artists are increasingly turning to the net to make a quick buck or looking for mine personal information from overly-trusting, unsuspecting consumers. While there is no way to guarantee you won’t become a victim of on-line scam, there are several steps you can take to protect yourself.

• Protect your identity. Nearly 10 millions Americans have their identity stolen every year. Though this number seems staggering, there are steps you can take from becoming a statistic. Avoid giving out personal information like your social security number, credit card number or bank account information unless you know exactly who you are dealing with.

  Several on-line scams involve e-mails or pop-up ads asking you to “verify” your personal information. As a rule, you should be very skeptical of these notices; no matter how “official” they look. Most banks and financial institutions would not attempt to contact you via e-mail or through a pop-up advertisement. If you aren’t sure if an e-mail or pop-up is legitimate or not, call your financial institution over the phone, don’t e-mail them by hitting the reply button. Report any scam e-mails spam@uce.gov

• Shop safely. Don’t provide any personal information such as your address or credit card number unless you are on a secure, encrypted site, which encodes your information, making it more difficult for hackers to access. Look for a picture of a “lock on the bottom right-hand corner of your browser, or a URL which begins with “https,” (The “s” stands for secure.)
• Pay with a credit card. Under the Fair Credit Billing Act, consumers may dispute unauthorized charges. In most cases, the credit card company will suspend the charge as well as any interest charges as it is investigating the claim. If it is found to be an unauthorized charge, you are legally liable for only the first $50 of the charge. (Some credit card companies provide additional coverage.)

By following a few simple steps you can help reduce your risk of being the victim of an on-line scam, and help ensure that your on-line shopping experience is safe and pleasurable.

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By David Plowman

Managing your money, creating and sticking to a budget is arguably one of the most difficult things to do. On paper, it looks easy: save more money than you spend. But how do you get from concept to reality? How do you save for the future when even as you are struggling to make it through until your next payday?

One key is to finding a budgeting system that works best of you.

Some people have the discipline to track every penny of their paycheck. They know exactly how much they spent on their utility bills for the last five months. They keep record of every purchase for any given pay-period. They are walking, talking calculators; they know they can’t go out to eat this pay period because their gas bill is $20 higher this month.

If that’s you, you have my sincere respect and congratulations. I am awed by your Rain Man-like discipline. In fact, as a reward, you can probably skip the rest of this article and move on to other topics like investing and finding the best IRA. I probably can’t tell you anything here you don’t already know already.

But for the rest (majority?) of us, it is daunting to keep such meticulous track of our spending. The mere thought of tracking every $1.67 spent is enough to make us scream.

But the good news, many financial experts agree, is it is possible to budget in broad strokes. For example, take a look at your major necessary expenses. Roughly calculate how much you spend on housing, transportation (including car payments, insurance and gas), food and utilities in a month. Then do everything you can to make sure that amount doesn’t exceed 60 percent of you monthly income.

If you know your housing payments are eating up most of that 60 percent, find ways to economize in other areas. For example, trade in that expensive, gas-guzzling SUV for a cheaper, more fuel-efficient car.

The next 30 percent of your income should be divided into various long term savings (for retirement) and short-term savings (for holidays, emergencies, or even an upcoming vacation). The best way to accomplish these savings goals is to utilize direct deposit from your employer. Have your long-term savings deposited into an IRA, and put the remainder into a savings account. You won’t spend the money since you never see it in your checking account.

The remaining 10 percent of your income is free and clear spending money. No need to track every penny. You’ve already done most of the heavy-lifting by keeping your major expenses in check, so go out and live a little.

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In the last few years, the lending industry has enjoyed tremendous success due to low interest rates and the subsequent real estate boom. It’s important to remember that shopping for a mortgage, whether it’s to purchase a home, for refinancing, or a home equity loan is like shopping for any other major purchase, such as a car, so the price and terms are negotiable, as there is a huge amount of competition in this industry.

As with any other major purchase, your mantra for mortgages should be “Shop Around.” Compare rates and terms from thrift institutions, commercial banks, mortgage companies, credit unions, and mortgage brokers. Here are a few things to pay close attention to:

- Make sure you are aware of whether you are dealing with a broker or lender. Brokers deal with multiple lenders to find you the best rates, but they charge varying fees which are separate from what you pay the lender. Find out what fees you will be charged ahead of time if you are dealing with a broker.

- Make sure you are aware of the cost and terms in your mortgage quotes. It’s not enough to know just the rate or monthly payments. You must be aware of the down payment amount, the loan term, whether the rate is fixed or adjustable. In addition, you should be aware of what points and fees you will be charged for the loan.

- Most lenders used to require a 20% down payment as a condition of the loan. However, these days, many lenders will provide loans with down payments as low as 5%. Generally, these lenders will require the buyer to purchase Private Mortgage Insurance as a condition of loan at rates under 20%. You will want to calculate the monthly premium of this insurance and factor it into your buying decision.

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