This is a guest post from Mr Credit Card from www.askmrcreditcard.com. Mr Credit Card was a student a “long” while ago, but today, he is going to be writing about some mistakes to avoid when you graduate and enter the working world. If you are looking for a credit card, please check out his best credit card deals and offers section.

So you’ve finished your work, you’ve passed your classes and earned a degree that’ll make you rich, right? For a lot of students who’ve recently graduated, this might be the time to really start the party, because after all, you deserve it. Here are some very common money mistakes that recent grads make that usually just end up putting them in an even larger financial burden than they already had.

1. Overspending on the wardrobe. The first thing that many folks who graduate do is to go on a shopping binge on a new wardrobe. After all, you’ve just finished living in pajama pants and hoodies for 4 years, now it’s time to step it up and dress like an adult. Being well dressed and wearing nice clothes does not mean spending all of your money on designer fashion. Shop the sales and clearance and look for deals and great buys instead. If you really do need some fancy clothes for your work, save up for it.

2. Partying and drinking more while out of school. Maybe you only partied a little during school, or maybe not at all and now that you’ve graduated you feel like you should. Just because you’re done with school, it doesn’t mean you’re suddenly able or should be partying and drinking with friends a year afterwards. Also playing Mr. Big and picking up the tab doesn’t always reflect your success to your friends and family, but that you’re wasting money. Look for other ways to celebrate that may be cheaper and save the money for something that won’t give you a hangover the next day. This is almost like the Starbucks effect, but I guess we’ll just call it the Happy Hour effect.

3. Eating out too much. A lot of students are sacrificing great meals during school by eating Ramen noodles and frozen pizza until they graduate, so of course when it’s all said and done they can’t wait to indulge a little in something that doesn’t go in the microwave or come with its own packets of seasonings. Unfortunately, eating out is a bad habit that can end up becoming extremely expensive. The best thing would be to improve your cooking skills from Ramen Noodles to something more conventional!

4. Buying swanky gadgets. Everyone loves gadgets and college graduates are no different. Once you make it to graduation though, this is no time to splurge on brand new cell phones and laptops, nor new plasma TVs and home entertainment systems. Believe it or not, the gadgets that brought you through your 2, 4 or 8 years of education, are still good enough until you can actually afford the newest and swankiest of gadgets. And, if you didn’t have it before, you probably don’t need it now.

5. Abusing the credit cards. This is an easy one to fall into, and not just by college graduates. Upon graduation, the world is yours and all you can think of is jumping on the high paying job that you were trained for and letting the cash roll in. If it takes a little while that’s okay, because you have credit cards and you can pay them later, right? Unfortunately, the high paying job doesn’t always land at your feet as soon as you take your gown off and you certainly don’t want your entire salary going to paying credit cards – something that the recent CARD act hopes to assure.

Don’t abuse your credit cards with the intention of worrying about it later. Never be tempted to carry a balance on your credit card. Do not fall for low interest rate offers. Instead, pay your bills in full every month. Use either a cashback rewards credit card or a gas credit card if you drive and travel a lot and save some money in the process. Once again, remember to pay your bills in full.

6. Not being savvy when grocery shopping. This is similar to eating out a lot. College graduates are probably the last to use grocery store coupons or shop the cheapest prices on bologna especially when they’ve most likely been choking down Ramen for a while. It is still a good habit to get into right away to prevent spending unnecessary gobs of money on groceries. If you have the time, learn to use coupons. There are lots of Mommy sites that will teach you a thing or two on the subject.

7. Celebrating with an expensive trip. Woohoo you’re free from school forever, now you should take a 2 month backpacking vacation across Europe, right? Actually, this is probably not a great idea since a) vacations cost money you probably don’t really have in your pocket yet and b) it’s best to start looking for a career in your field as soon as possible. Rather than enjoy the good life, learn the right to enjoy it. You simply have not earned that right just by graduating. Remember, money talks in this world.

8. Purchasing a new set of wheels. As a college student, you may have spent the majority of your time while getting educated, either carpooling with friends, driving a clunker that has since been silly stringed and covered with class of 2010 graffiti or just plain old walking. Many graduates feel very strongly about purchasing a brand spanking new vehicle upon graduation and end up with a car payment as much as most home mortgages. Take the silly string of your clunker and get as many miles out of it as you can. Get a used car if you really have to.

9. Renting a new crib by yourself. Who’s sick of dorm rooms and roommates? A college grad is sick of it, that’s who, but living by yourself and renting a fancy new apartment is actually a waste of money. At the very least, keep one of your buddies around to share the rent so you can save some money for the house that will be an even better investment in the long run.

10. Forgetting to save for retirement. When you are young and feel like you can conquer the world, the last thing you will bother about is retirement savings. After all, it seems so far away. But always sign up for your company’s 401k plan or whatever retirement plans they offer (especially if they match). If your company does not have a retirement plan, you can set up your own Roth IRA and start investing with less than $1000.

Look Further Down the Road
Sure you deserve to treat yourself, but decide upon a treat that is minimal and won’t put you in debt in the long run. After all, you don’t want to spend the rest of your life in your new career paying off everything you splurged on as soon as you graduate. Make wise decisions now and you’ll reap the rewards later.

Simon’s Note: As a somewhat-recent graduate myself, I’ve made a few of these mistakes as well with a few upgrades in the closet, an iPhone, and a PS3 since graduation. But, it is important to note that many young adults make these mistakes WHILE IN COLLEGE too – which is even worse.

(Photo credit: CarbonNYC)

We love the word “free”. To us, “free” implies something that doesn’t come at a cost. Free stuff is great. Who doesn’t like free stuff?

We are a society that thrives on capitalism: there is always something to gain in exchange for something else – which should probably hint that “free” comes with a catch because it wouldn’t exist otherwise. Someone giving stuff away could gain as little as the proud feeling of doing something good. Any less of gain would render that “stuff” as garbage.

Most of us feel great when we get something for free and don’t think twice about why that is so. We don’t stop to wonder how it can be free – since many people would prefer to charge someone for something instead of just handing it out.

I’ve recently run into plenty of situations (that most people can relate to) regarding free stuff that revealed to me the truth behind “free”:

- Good old hand-me-downs
There is this always some fashion look that teenagers will often chase at a certain stage in their young lives. I, too, became a part of this generation that bought an item that (even after 4-5 years) is still popular among teens – in this case, it was a discontinued edition of a popular backpack.

My younger cousin who has entered high school is going through this exact same stage and the backpack is still in style – in fact, he’s been haggling me about giving it to him. Now that I find no significant need for it, I let him have it.

He gets a backpack that makes him “cool”. What did I get?

Nothing tangible, of course. I did get the feeling of doing a good deed (somewhat) and for putting a smile and two seconds of joy on my cousin’s face. Making others happy makes us happy too right? Another perk is uncluttering. It has just been taking up space in my room since I graduated. Giving it away would be one less thing in my room.

- Buy one get one free
Mmm… For some reason, “free” just triggers the inner shopaholic in everyone. Maybe that is why the field of neuromarketing exists – the study of sensorimotor, cognitive, and affective response to marketing stimuli (according to Wikipedia). Despite practically saying the same thing, “buy one get one free” is more likely to induce a shopping spree than “two for the price of one”.

A clothing retailer (as have many stores) was having a sale to prepare inventory space for clothing for the coming spring. The ad stated that jeans were buy-one-get-one-free. Sure. I needed some new jeans so I’ll just pick up two pairs.

I walked out of the store with two pairs of jeans, two shirts, and a hoody. What just happened there?

The two primary goals of their use of “free” was beautifully accomplished as it was able to get me to walk into their store and spend money while my shopping trip helped get rid of out-of-season inventory. Like all other sales and discounts, the intent is to get you to shop, which would lead to spending – and “free” does this with flying colors.

- A free book
Ever gotten something free and you just couldn’t help but gloat and spread the word? And soon, everyone knows about it – such is the power of word-of-mouth. Some companies have realized the skepticism of shoppers and uses “free” to lure in one shopper, who brings in more shoppers, who bring in even more shoppers.

Like many other bloggers out there, I get free stuff so that I can act as a trusted (at least for what it’s worth) middleman with an unbiased (again, I try) voice. So occasionally, I’d get a book, service, or product for free in exchange for an honest review here on Realm of Prosperity.

To us bloggers, having our blogs recognized as a viable avenue for trustworthy opinions is flattering. But, it isn’t necessarily the best deal since a thorough review of any product or service could potentially be worth more money than the value of the free product or service. If Apple gave a few free iPads to the staff of TechCrunch, their review serves as exposure, marketing, and advertising which could drive a huge number of sales. A “free” $500 just bought a dedicated review that one would have charged thousands to write.

Take a Second
So the next time something free comes along, I’d take a second to ponder the benefits to the other party that comes from such a kind gesture. Although I wouldn’t totally disregard that there is a very rare chance that such a generous act could come from a sincere individual – but I tend to be a skeptic.

I think it is safe to say that any commercial entity that’s offering “free” stuff is using it as a marketing tactic. For other situations, it may not be so clear-cut to decipher. That’s right ladies: think twice before accepting that free drink at the bar (guys are going to lash out on me for that one).

(Photo credit: frankh)

The PineCone Research panel has just opened up again and they are looking for new members! I’ve been with them for over two years already and they are by far the best paid survey group out there.

From the referring links that I check through SiteMeter, I see that many of them arrive at my blog in search of this highly rare chance to be a part of such a great research panel. PineCone Research typically has ads on certain websites and clicking these ads are the only way one can apply to become a member. It is a highly selective and exclusive panel with swift payouts of $3 USD per completed survey. I know many people are looking to be accepted into this panel. PineCone Research is certainly at the top of my list of online money making opportunities.

They sent me an email asking me to reach to other would be interested in joining.

So, if you’d like to join, click this link.

They do pick individuals of certain demographics. If you are selected to join, you should receive an email within a few days that you’ve been chosen.

Note: Only one member per household.

Sign up before it expires and good luck!

Deceptive businesses exist all around the world and we hear stories of fraud and scamming. The extremity of such deceitful practices is unknown until it hits close to home.

Among the common fraud schemes such as Nigerian money transfers and pyramid scams, there is the popular magazine scam – the one my friend became a victim of.

What Happened the Friend
Johnny, a close friend, was a subscriber to ESPN Magazine when he got a call from a representative of “World Wide Readers Service”. The caller went straight into offering a number of other magazines in addition to Johnny’s current subscription of ESPN Magazine for a discount price of $50 per month. Assuming it was a legit offer (since they knew of his current subscription with ESPN), Johnny gave out his billing information.

For the following four months, Johnny saw a charge on his monthly credit card statement for $49.99 without receiving a single magazine in the mail. Upon realizing that he had just became a victim of a telemarketing magazine scam, Johnny cancelled his credit card to prevent the company from charging him again.

Seeing that they weren’t getting their monthly dose of scammed money from Johnny, they gave him a call to obtain new credit card information – along with the threat to report him to a collection agency if he failed to do so. The next obvious step was to request a cancellation to stop these ludicrous charges. Their response: Sure. Just pay the cancellation fee of $1,100.

Apparently, they claimed that Johnny had a 3-day cancellation period in order to avoid the cancellation fee. But really, who get can get five different magazines to an address within three days of ordering? And, I should mention that all their contact numbers are supposedly out-of-service.

What they used to hold him accountable is a voice recording of the initial phone call in which he entered a verbal contract with them. Any affirmative response could be added into an audio editing that actually makes him sound like he agreed to their terms.

The cancellation fee is quite a steep amount but it is holding Johnny’s good credit as hostage. The company had strategically put an amount which was large enough that someone would rather pay it than hire a lawyer.

What Did Johnny Do?
Well, Johnny decided to pay the cancellation fee of $1,100. He used a voice recorder for all calls between him and the scammers. He also requested a written letter of cancellation. The entire ordeal was a reason for constant worries and many sleepless nights – he just wanted to get it over with.

Was there a better approach that Johnny could have used in handling his situation?

Surely, he probably could have pursued legal advice and action. It would have been a taxing endeavor (both mentally and financially) despite he wouldn’t yield to the scammers’ demand.

But, he’d rather have this problem out of his life as soon as possible. Despite being out $1,300, Johnny learned a valuable lesson and is glad that it is all over now. There is very little he can do now other than sharing his story in an effort to prevent others from becoming a victim.

How to Avoid Becoming a Victim
Avoiding these magazine scams is easily done by becoming a savvy shopper. Most people would think “this is too good to be true”. Aggressive sales tactics play a big part in the success of these bogus companies.

• Confirm the affiliation of the caller. Note the details of a telephone offer from the company. Call the office company number and inquire on the offer details.
• Never provide any personal or financial information to anyone over the phone (expect trusted sources). Once you provide personal and financial information, it implies that you agreed to something. This will jeopardize your privacy and credit – and it looks bad for you if you decide to take legal action.
• Perform a quick Google search with the “name of the company” and the word “scam”. Google will provide you the best and fastest way of determining the legitimacy of a company. Any signs of shady business practices means you should hang up right now.
• Do not say anything indicating your agreement to a verbal contract. Make a note to not say “yes” or “I agree” to a telemarketer. Altering a voice recording is quite simple.
• Request paperwork and info/terms. Having everything in a written document is a way to obtain proof of agreed terms and details. If you want to cancel anything, request a letter of cancellation. You’ll have proof ready when they decide to dispute your cancellation.

Johnny hopes that sharing this story and experience would help others avoid becoming victims of similar companies in the future. And, I hope that everyone who stumbles upon this article through a search for “World Wide Readers Service” will realize that they are a scam before falling prey to them.

(Photo credit: jepoirrer)