7 Things You’re Paying Too Much For

Beyond Starbucks and bottled water, you’re likely overpaying for many of the items you use every day. Here are the details on 7 things you’re paying too much for and some suggestions on how to make choices that cost a lot less.

Cell Phone Plan
According to Billshrink.com, on average, people waste $336 per year by miscalculating their use of voice minutes, texts, and data usage.

Before you assume this doesn’t apply to you, take a few minutes to check out your bill. How does your usage compare to the plan you have signed up for? Billshrink has proven that the average person overestimates their voice and text usage and underestimates their data needs (but that they are still signed up for more data than they need).

Bank Fees
In 2009, 76% of financial institutions had a fee-free checking account. Today, that percentage is down to 45%. Research shows that 92% of financials offer to drop the fees in exchange for some sort of activity (maintaining a certain balance or using your card in a certain way); however, if you’re not careful, you could easily acquire fees if you don’t meet those requirements each month.

In addition to monthly checking fees, ATM and overdraft fees have risen throughout the years as well. Currently, you’ll pay $2.40 on average at non-partner ATMs and at least $30 if you overdraw your account.

So how do you avoid this? First, check your account to see if this is happening to you. If you’re seeing more fees than ever before, speak to your financial about how to avoid them, and if you’re not satisfied, consider a switch. (We recommend credit unions!)

Books
If you’re an avid reader, there are probably some books that you’ll reread or want to hold onto for a long time. However (at least in my experience), this is the exception, not the rule. For those books that do fit the rule, is it a good idea to spend $10-$30 for a new book when other alternatives exist?

• Buy Used: Websites like abebooks.com specialize in selling previously read books at discount prices. The book condition is listed and a 30-day no-hassle return policy is in place for peace of mind. And, while there is a cost for shipping, the combined cost is still a good deal.
• eReaders like Barnes and Noble’s Nook and Amazon’s Kindle let you preview the first few chapters (sometimes up to 50 pages!) for free so you can decide if you want to move forward with the purchase, which will often cost less than the physical book.
• Library: You’ve heard it before, but it pays (literally) to repeat. Read books for FREE. Enough said.

Greeting Cards
According to GreetingCard.org, the average household purchases 30 individual greeting cards per year. And, while the price can range anywhere from 50 cents to $10, the average cost is about $3 per card. When we consider that greeting cards are about as disposable as wrapping paper (something else we’re paying too much for), you’d often be better off putting that money toward the gift.

Here are a couple lower-cost alternatives:
• eCards: eCards have come a long way over the years, and sending “eVites” is becoming very popular. While you will lose the tangible quality of paper cards, you can have some extra fun with interactive eCards like this one!
• Blank Cards: Whether you want to create a message on your computer and print out the sentiment or if you want to let your kids bring out their markers and get creative, blank cards can be more economical if you still want to send a paper card or include one with a gift. In fact, Amazon.com sells them for about 55 cents each.

Brand Name Meds
The next time you’re at the store looking back and forth between the generic (or store) brand and the name brand, feel good about your decision if you end up reaching for the generic. When it comes to meds, generics are 80% cheaper on average, and contain the same active ingredients. Branding can be a powerful force, and you can be tricked into thinking that Advil (for example) is better than the Walgreen’s version of ibuprofen, but when you read the labels, you’ll realize that the only difference is in the packaging.

Protein Bars
Making the right food choices is important for good health. For people who are very active, maintaining energy and strength is a priority. I recent years, “health food” has become increasingly popular, and a demand for convenience has caused a boom in sales of protein bars.

However, before you pay $1.50 – $2.00 for your protein bar, read the label. Specifically, check the sugar and fat content. Experts warn that all bars are not created equal, and some may be as bad for you as a candy bar.

SparkPeople.com has some great suggestions on what to eat to stay energized, and many of these foods are much less expensive and just as convenient as a pre-packaged bar.

Pre-Chopped/Pre-Packaged Vegetables
Time vs. Money. It’s sometimes a tough decision. If you know you’ll be pressed for time, choosing bagged lettuce over a head of lettuce can be a good choice. However, if you know you’ll have a few minutes of prep time, you’ll be much better off avoiding the bag.

Personal Observation from the Writer: The last time I was at the store, I bought a head of lettuce for $1.29. I took it home, ripped up and cleaned the leaves, and then filled a gallon-size bag with the lettuce. And, I know from experience that the lettuce will last at least a week (or more) in my fridge (if I don’t eat it all before that.) In comparison, the bagged lettuce was $2.59, the quantity was about half of what I ended up with from my head of lettuce, and I know (again from experience) that, once open, the contents of the bag will only stay fresh for a few days.

The same holds true for other vegetables (and even some fruits). On average, you’ll spend 30-50% more for cleaned and cut veggies. With summer here, fresh fruits and vegetables are readily available and priced well, and some argue that a handful of carrots bought at your local farmer’s market can taste much better than the bag of baby carrots at the grocery store.

What do you know you’re paying too much for? Why do you do it?

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3 Simple Ways to Increase the Value of Your Home

Summer is almost here, and that means it’s the perfect time to get your hands dirty with some do-it-yourself home improvement projects.   Here are 3 things you can do this summer that are easy, inexpensive, and will add value to your home!

Landscaping

Estimated Cost:  $250-$500 average

This time of year, the weather invites us to be outside, and wouldn’t it be nice to spend your outside time in a beautifully landscaped yard?  Landscaping projects can certainly range in cost and time commitment (not to mention expertise), but there are several things that just about anyone can do – and do on a budget.

• Fix Up and Fertilize:  Repair and reseed any bare (or brown) spots on your lawn and then fertilize.  This is an important first step in improving any yard.
• The Power of Perennials:  Flower beds and borders add color and beauty to your yard.  By choosing perennial plants and shrubs that are compatible with your climate, you’ll ensure that your hard work will keep paying off from year to year with minimal work (and future expense) on your part.
• Movable and Removable:  One of the newest trends in container gardening.  Whether you have a small space or just want to mix it up now and again, consider planting flowers and plants in pots.  By doing this you’ll have accents that you can move around throughout the summer, and then you can easily clean and store the containers for the following year.

Something to Think About:  If you think you’ll be selling your home in the next few years, spending time on improving your landscaping is very important.  After all, your yard will be your first impression to potential buyers, and you want that impression to be a good one.  If you’ve taken good care of your yard, buyers will be more attracted to your property and assume that you’ve also taken good care of your house as well.

97% of real estate agents recommend improving your landscaping before putting your house on the market according to HomeGain’s 2012 National Home Improvement Results Survey.

Cleaning and Decluttering

Estimated Cost:  $250-$500

It may seem simple (and it is), but cleaning and decluttering is also one of the best ways to increase the value of your home for a minimal cost.   In HomeGain’s annual Home Improvement Survey, this suggestion ranked #1 in terms of ROI in a list of the top home improvements for sellers.  Even if you’re not thinking about selling any time soon, taking care of all of the items on their checklist each year can ensure that you’re ahead of the game if you ever do want to sell.

And in the meantime, wouldn’t it be nice to live in a cleaner, less cluttered home?

Painting

Estimated Cost:  $20-$30 per gallon

If it’s been a while since your walls saw a fresh coat of paint, throw open the windows, grab a brush, and get ready to add some new life to a room.  If you’re thinking about selling your home in the near future, painting is essential.  However, even if you have no plans to sell, a few hours of work can take a space from drab to fab.

Something to Think About:  If you are planning to sell your home, stick with neutral paint colors as potential buyers may not like the red wall in your dining room as much as you do.

If you’re considering a more adventurous home improvement project such as remodeling your bathroom or replacing your windows, we advise that you consult Remodeling Magazine’s 2011-12 Cost vs. Value Report.  As you see, some projects add more value than others; however, because of a sluggish housing market, none will currently offer a 100% return on investment.

What home improvements have you made in the past that have boosted your home’s appeal and value?

 

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An Interview with Dave Christenson – President/CEO of Connexus

You asked. He answered.

A couple weeks ago, some of our Facebook fans submitted questions for Connexus Credit Union’s President/CEO, Dave Christenson. Below are those questions as well as Dave’s responses.

After you read them, if you’re inspired to ask questions of your own, please comment. We promise to get you an answer!

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Question: What major changes or milestones have you seen at Connexus Credit Union during your tenure as president?
Dave’s Response: The biggest change I’ve seen is the increase in electronic services. When I started at Connexus, we didn’t have a website or online banking because the capabilities of the internet were just starting to be explored. Now, more and more services are online, mobile technology is exploding, and there are fewer members using traditional branches.

Question: I’ve heard that credit unions don’t participate in VA Home Mortgages. Is this true? And if it is, why don’t they?
Dave’s Response: Credit unions can participate in VA lending; however, there are a couple reasons why we have chosen not to participate. First, the VA Home Mortgage program has so many rules and requirements that you need to do a lot of them for it to be a smart financial venture for your credit union. Second, we simply do not have the demand from our members. It is also important to note that many times the mechanics and pricing of VA loans is not as good as what is available through Connexus.

If we did have the demand, we’d certainly look into adding them to the solutions we offer as we’re always striving to do what’s in the best interest of our members.

Question: What is your favorite product or service at Connexus and why?
Dave’s Response: So many to choose from! I’m going to say the Member Center. While we just talked about the increase in online conveniences, it’s still very important for us to balance the high tech world with the high touch needs of our members. Sometimes it’s just best to talk to someone, and our Member Center Consultants can handle most calls from start to finish.

Question: If there was one thing you’d want Connexus members to know, what would that be?
Dave’s Response: I want to assure them that we have their best interest at heart – both individually and collectively as a membership. Connexus primary value is integrity – and we want to make the right decision for our members all the time.

Thank you again to those who submitted questions. If you have any questions for Dave, please comment and share!

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5 Must-Have Financial Apps

Over 800 new apps are submitted to the iTunes App Store every day. And, there are thousands of active apps that have been created to help you with your finances. Finding a good financial app can be a little like finding a needle in a haystack.

We’re here to help. Here are 5 of our favorite financial apps, designed to make your financial life simpler, smarter and better – just how we like it!

Key Ring
Many stores offer loyalty cards to help you save money – which is great. But quickly finding the right card when you need it can be frustrating. If only there was a better way to store those cards so you could access them quickly and easily without adding bulk to your wallet or your keychain. Now there is!

Enter Key Ring. The Key Ring app can be downloaded and used to scan and store existing loyalty cards, join new programs and receive mobile coupons via your iPhone, Android, Windows 7 and Blackberry device. Kudos to Key Ring for saving consumers time, space and money.

GasBuddy
Find the best local price on gas when you use the money-saving app from GasBuddy. When you download the GasBuddy app, you become part of a community of users that works together to report current gas prices and spread the word about the best gas price in town.

Gas prices are going nowhere but up this summer. GasBuddy saves you time and money by helping you get the best deal possible.

Grocery Gadget
Save time and money at the grocery store when you use the Grocery Gadget app – available for your iPhone, Android, Windows or Blackberry.

Not only does Grocery Gadget let you easily prepare lists, organize them, and check items off as you put them in your cart, it also learns and remembers. As you check off items, Grocery Gadget realigns your list in that order to correspond how you navigate through the store. This makes your shopping experience even easier next time.

Grocery Gadget also lets you upload photos of items, sync lists with family members, and look for eCoupons.

Mint
Mint set the standard for financial apps and continues to be touted as one of the best. Available for your iPad, iPhone, Android phone or Android tablet, the Mint app is the ultimate budgeting tool. Mint’s free app allows you to securely connect to all of your financial accounts, track your spending, look for trends in your spending, and set up goals and budgets.

Groupon
Groupon deals can give you 50-90% off featured goods, services, and travel packages – making these online coupons ultra popular for a reason! With the Groupon app, you can purchase, manage or redeem Groupons directly from nearly any mobile device.

Save the time and paper when you carry the deals right with you. The Groupon app allows you to track your Groupons by location, date and expiration, and redeem them quickly, easily – no printing required.
Do you have any apps that you can recommend that make your financial life simpler, smarter and better?

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7 Ways to Spring Clean Your Finances

Clean windows. Clean garage. Clean floors. Clean finances?

Why not! Spring cleaning can leave you with a tremendous feeling of satisfaction, and sometimes it only takes a little effort to see a big change.

We’ll show you 7 easy ways that you can spring clean your finances – and save money, too!

1. Put paper in its place. Even with all of the electronic conveniences and automatic billing options that surround us, chances are that you still have a great deal of paper lying around your house. Now that another tax season has passed, it’s the perfect time to go through your stacks and files and decide what you need to keep, what you can toss, and what you can shred. Then, decide how you can best store things going forward – in a file cabinet, in folders, or by scanning items and storing them electronically. By keeping your documents better organized, you’ll save yourself time and money in the future.

2. Go green. After you’ve finished organizing all of your paper, you may be tempted to do what you can to eliminate it from your life so that next year’s organizing job isn’t as big. The good news is that many of your “papers” can now be received electronically: eStatements instead of paper statements, electronic bills instead of paper ones mailed to you, and online bill pay instead of writing checks and stuffing them in envelopes. Take a few minutes to sign up for some of these conveniences to declutter now and save time (and space) in the future.

3. Clean up your credit. Once a year, you can request a free credit report from each of the major credit reporting agencies (Experian, TransUnion, and Equifax) through www.AnnualCreditReport.com. Review your report and make sure that everything is in order – and there’s nothing on there that shouldn’t be. If you do find a mistake, contact the credit reporting agency immediately. And, while your free credit report doesn’t come with your credit score (unless you pay to receive it), if your score has room to move upward, check out our recently posted blog about the 5 easiest ways to improve your credit score.

4. Cancel unused services. What are you paying for that you don’t use? A newspaper subscription, extra cable channels, maybe a gym membership? If you’re paying for a product or service that you don’t use anymore (or maybe never did), now’s the perfect time to cancel it. Often, we forget about these expenses if we’re billed automatically for them, but they’ll be as easy to cancel as they were to add, so take a few minutes and get it done.

5. Review your retirement plan and your savings plan. When was the last time you increased the amount of money you’re allocating to your savings plan or retirement plan? Do you even know how much you have going in a savings direction? Saving is hard – we know. However, if you have that money placed in those accounts automatically each time you get paid, it becomes much easier. Then, make sure to review your allocations each year. Perhaps tie your review to another important date on the calendar: tax time, the beginning of the year, your birthday – anything you can easily remember.

6. Check your checking – and your loans. Two interesting things have been happening over the last year in the financial services industry: checking fees have continued to rise and loan rates have continued to drop. If you know that you’re paying more than you should be for either of these services, shop around. There are many banks and credit unions still offering “free” checking, and if you’re paying more than 4% on a loan, you can get a better deal (and a better payment) somewhere else.

7. Be sure about your insurance. Much like your savings plan, insurance is one of those things we tend to set up and then not think about again. But, life is always changing, so your needs are too, right? Has a change in your family status given you reason to increase your life insurance? Do you need to save some money by increasing your deductible on your home loan? Are you paying too much with your present provider? Most insurance companies will be happy to give you a free coverage review and price quote. You just have to ask.

Spring cleaning rarely costs much. It just requires some time. Financial spring cleaning is the same way. But the extra benefit with financial spring cleaning is that a little time spent leaves you with something better than clean floors – more money in your pocket!

What financial spring cleaning tips do you have to share?

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Top 5 Ways to Improve Your Credit Score

1. Make Your Payments on Time. This might seem like a no-brainer, but it is the #1 way to improve your credit score. If you want a good score, you MUST make your payments on time.

It’s important to know a couple things about late payments. First, the amount of your late payment doesn’t matter. Late is late. Therefore, a $25 department store late payment has the same impact as a $1,000 mortgage late payment. Second, time is on your side. A late payment from a few years ago will have less impact than one made last week. Therefore, the longer you work toward making your payments on time, the more it will pay off in terms of a better score.

If making your payments on time has less to do with how much money you have and more to do with how little time (or memory) you have, make it easy on yourself. Set up automatic payments with your lenders or credit card companies so at least your minimum payment is covered in the event you forget to make a payment.

2. Pay Down Your Balances. Capacity makes up about 30% of your credit score. That means, if you’ve nearly maxed out your credit cards, you have very little capacity. The lower your capacity, the lower your credit score.

By paying down your balances, you increase your capacity and thus begin to raise your score. The first step? Stop adding to your debt. This is difficult to do but absolutely essential if you’re going to be successful in reducing your balances. Second, make a payment plan, and be as aggressive as you can be. As the balances go down, watch your credit score go up.

3. Keep Unused Cards Open. Many consumers have the tendency to close out a credit card once it’s paid off. Don’t, as this also affects your capacity.

Cancelling a card can lower your score because you’ll no longer have the capacity that comes with that card. Length of credit is very important to a credit score, so if you keep a card open for a long time – using it every now and again so the company continues to report your activity to the credit bureaus – you’ll see a benefit in your score.

4. Apply for Credit Only When You Need It. We’ve just stated how important it is to have available credit – or good capacity. However, this is best achieved by adding credit slowly. Sometimes this is hard to do, especially during the holidays or when stores tempt you by offering you a discount if you apply for their card. But, it’s important. If you open a number of cards within a short period of time, it can look to a lender like you’re struggling, and you may be viewed as a risky borrower.

Please note that you do have some leniency, though, when you’re shopping for a mortgage or an auto loan. If you have several similar “inquiries” on your credit report within a few weeks, this will not have a negative impact on your score.

5. Get a Free Credit Report Once a Year. Mistakes can happen, and they can have damaging consequences to your credit score. You can get a free credit report once a year from the three major credit bureaus (Equifax, TransUnion, and Experian) by visiting www.AnnualCreditReport.com. (Beware – other sites may charge for this service.)

If you find a mistake, contact the credit reporting agency immediately and have it resolved. We all make enough mistakes of our own. We shouldn’t have to pay for those made by others!

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How to Switch Your Checking Account in 5 Easy Steps

When you originally opened your checking account, you were pretty happy with it. But something has changed. Maybe you’re required to keep a minimum balance in your account now, and that’s tough to do. Perhaps you’ve seen a charge show up on your statement each month just for the “privilege” of having your account. Or maybe you’re able to keep a good balance in your account and would like to earn more than .25% APY.

We’re here to tell you that switching your checking account does require some work on your part; but if you find an account that’s better for you, the move is definitely worth the time and effort. If you’ve been thinking about making a change, this short video will give you an idea of the 5 steps involved to go from a “so-so” account to one that you can feel great about.

Do you have any tips for making the switch?  Comment and share!

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Rising Gas Prices: 3 Things You Need to Know

Spring is here! And you may have noticed that there’s only one thing rising faster than the temperature: Gas Prices.

But just how do those soaring numbers affect us? In our latest blog post, we’ll tell you about:

1. Where gas prices are predicted to be by summer
2. How higher gas prices affect more than your fuel tank
3. What you can do about it

Ready to get informed and get moving in the right direction?  Let’s start!

Where Gas Prices Are Now and Where They’re Going
Right now, the average price of a gallon of gas $3.81. Comparatively, at the end of 2011, the average price nationally was $3.20. And this rising trend is expected to continue throughout summer.

(Graph shown is displayed on the AAA website.)

Gas prices always seem to rise in time for the busy summer travel season, but Gasbuddy.com’s 2012 price outlook predicts that this summer will break records, and ABC News has predicted 2012 to be the worst year ever for gas prices. By summer, most of the country is expected to see gas prices around $4.00 – $4.50 and some metro areas and states such as California and New York could see prices hit $5.00 a gallon.

Interesting fact: 3 years ago, the price of gas was half of what it is now.

Higher Gas Prices Affect More Than Your Tank
Chances are, you think most about the rising cost of gas when you’re filling your tank. If it cost you $40 to fill up just after the new year, you’re likely seeing that amount jump to $50 now. Depending on how much you drive, that extra amount can really impact your budget.

But once you drive away from the pump, you’re still not able to distance yourself from the effect of soaring gas prices. Any business that relies on fuel and transportation for the manufacturing and distribution of its goods will likely have to keep raising their prices to offset the cost they pay for their fuel.

Unfortunately, the biggest area impacted is also one of our most basic needs: food. According to an article from Time, the price of meat and milk has risen more than 9%; coffee is up 19%; and peanut butter has jumped a staggering 27%. And beyond food, Time reports that even clothing prices are on the move upward – with children’s clothes prices up 6% for boys, 9% for girls.

What You Can Do About It
The most important think you can do is adjust your budget now. Since you know gas prices will be climbing through summer, figure out how much you spend on gas right now and add another 25% to it. Do the same for your grocery bill.

Then comes the hard part, that extra amount you’re allocating to gas and groceries has to come from somewhere. We invite you to check out one of our recent blog posts which shared ideas for how you could save up to $100 each week. In addition, since we’re talking about gas, some other proven ways to stretch your gas budget include:

• Switch to a more fuel efficient vehicle. Our Car Finder service helps you save money on gas by helping you search for the most fuel efficient vehicles.
• Do all of the things you’ve heard about but haven’t done yet: pump up your tires, change your air filter, don’t’ drive aggressively, combine errands, carpool, and avoid driving during times of heavy traffic (which can cause lots of stops and starts).
• Consider an alternative work schedule. If you have a job which would allow for this flexibility (and you have a flexible boss), consider working 10-hour days, 4 days a week or working from home once a week to cut down on your commuting miles.

Do you live in an area where gas prices are among the highest in the nation? Do you have other ideas on how to make the most out of your budget during these difficult times?

Comment and Share!

Mortgage Questions Answered – Parts 5 and 6: Refinancing

Note from Connexus:  When the refinance boom started in 2010, we recorded an interview with our mortgage team and published the questions and their responses as a podcast.  Last year, we transcribed the responses to the first 4 questions which can be found within our blog (see below), and we’re now completing the series with transcripts of the final 2 questions. 

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In a continuation of our Mortgage Questions series, Cheryl Schulz responds to another commonly asked mortgage question.

Question 5:  I have a first and a second mortgage now, can I refinance these to combine these into one loan?

“If those two mortgages were taken out at the same time – upon purchase of the property – to avoid PMI insurance or going over 80% LTV (loan to value) on your first mortgage, then yes, you could refinance them both into one mortgage and enjoy a more favorable rate.

If you have a first and second mortgage that were taken out at different times – perhaps you took out the first when you bought the property and maybe a few years later took out a second mortgage – it becomes a little more complicated in mortgage lending these days.  This is called a cash-out refinance.  It is doable, but the guidelines with the loan to values are less.”

Question 6:  I’d like to refinance my mortgage and add some additional debt to lower my overall payments.  How would that work?

Response provided by Joan Crisman, Mortgage Loan Officer.

“One of the things that the IRS provides for homeowners is the ability to itemize the interest (in most cases) on your mortgage – and on home equity loan.  Really, the big issue is how much equity does the borrower have in their home and is there enough equity to support adding debt onto their mortgage?

As a credit union, I feel that we always need to encourage thrift among our members, and I wouldn’t think it always the best decision to add four or five credit cards that total a larger amount – like $30,000 – onto a 30-year mortgage.  To me, stretching that kind of debt out there that long wouldn’t be very thrifty.

Just like any application, I think the thing to do is call us.  Let’s talk about what you have, look at what you owe on your house, what you think the value is, and discuss our options there.   Sometimes a home equity loan is the way to go on something like that and getting that debt into a type of product that you can itemize the interest on.

Credit cards are getting very tough these days, and we’re here to help.”

If you have a mortgage question or would like to know more about how Connexus can save you time and money on your mortgage loan, just contact our office at 800-845-5025.   Or, get a no-hassle online comparison or apply for a refinance now!

The following are additional blog posts that feature our mortgage team’s responses to frequently asked questions:

Question 1:  I have some issues on my credit report.  Can I still get a mortgage?

Question 2:  I don’t have a lot of money for a down payment saved up.  Are there any mortgages out there that are available for 100% loan to value?

Question 3:  If I lock a rate right now, and rates drop prior to closing, can I re-lock again?

Question 4:  If I’ve already had an appraisal done on my home, can you use it again?

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Is now REALLY the best time to sell your old gold?

“We Buy Gold!” 

These three words appear boldly in the windows of jewelry stores, on signs outside pawn shops, and in ads in the newspaper.

And since many of us are living with an “every dollar counts” reality during these tough economic times, those signs may seem to be calling our names.

But is now really the right time to sell your “old gold?”  Here are some things to consider.

The Price is Right

The price of gold has been climbing for the past 10 years and is currently at an all-time high, trading at just above $1,700 an ounce, compared to about $300 an ounce in 2002.  The price of gold can change daily, and you can find today’s price here.

Why So High?

Simply put, the weaker the dollar, the stronger the value of gold.  Over the past decade, economic turmoil and a drop in interest rates have caused a concern over a rise in inflation, and investors have shied away from the devalued dollar and instead have found investing in gold a more attractive option.  This trend is not only true in America but around the world as well.

Seller Beware

While gold is at an excellent price right now and demand will likely continue throughout the year and perhaps beyond, it’s important to be informed and cautious when parting with your great aunt’s ring or that gold necklace your husband wore in the 80s.

Research shows that one of the biggest mistakes people can make is not knowing what their gold is worth before selling it.  An investigation done by Today in 2010 revealed shocking results when analyzing companies that provide sellers with an offer for gold sent through the mail.  When sending gold to 10 companies, the offers ranged from 90% of their gold’s value down to 8% from a company that claimed they were about “giving you the best price for your gold.”

Even though sending gold through the mail can be one of the riskier choices, you still need to be informed when going to other buyers.  If you’re selling jewelry, one of the best places to start is your local, trusted jeweler.  If you don’t have a relationship with a jeweler, “ask if they are members of the Jewelers of America or the American Gem Society as both organizations advocate for ethical standards and professionalism in the retail jewelry industry” says Michael Gusky, owner of Goldfellow.com in an interview with Bankrate.com.

And, before you move forward with any company, make sure to check them out with the Better Business Bureau to see their rating (a B- or better is advisable) and see what, if any, complaints have been filed against them.

How to Know the Value of Your Gold

So how can you estimate the value of your gold before you approach a buyer?  As all jewelry pieces are different, this isn’t an easy question to answer.  To give you an idea, a recent article by CNN Money states:

“As a rule, the weight and karat of the gold determines its value. Ten-karat gold means that it has 42% gold content and 58% other metals. Fourteen-karat gold is actually 58% pure gold and about 75% of the content of 18-karat jewelry is gold.

Therefore, a piece of 14-karat gold jewelry that weighed about an ounce would be worth $928, or 58% of $1,600 — the current market value. From there, a seller could expect an offer of around 60%-80% of that price, or $550 to $750.”

If you do take it upon yourself to value your gold, here are the 2 main things you’ll need to know about your gold:

• Weight:  Most commonly in grams, pennyweights, or troy ounces.  Most gold transactions are conducted in pennyweights, with 20 pennyweights equal to 1 troy ounce of gold.
• Karats:  Pure gold is 24 karats.  Gold that is less than 24 karats has other metal or hardening agents mixed in.  While 14 karat gold is viewed as very high quality in most jewelry, it’s actually only 58.3% real gold.

If you do know these two factors, we found a “precious metal calculator” that you may find helpful.  Keep in mind that the buyer may keep 10% – 30% of the value as profit.

Last tip when valuing your gold?  Always get at least three offers to make sure you’re getting a fair price – and the highest price – for your gold.

So, to recap, when considering selling your old gold:

• Know what the current price of gold is
• Have a good idea of what your piece(s) would be worth
• Find a trusted buyer
• Get several offers

Have you had any success selling YOUR old gold?  We’d love to hear from you!

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