Seriously. In fact, they were so kind as to send me a pre-approval letter for a $50,000 loan at 3.89%, and a check designed for a car dealership (it is a sight draft to be paid to the dealer and has blanks for vehicle information including make, model, year, VIN, etc.). Check activation only requires a phone call from my end.

It’s great to know that my credit is good enough to get a decent interest rate on a new car and that I am pre-approved for a $50,000 loan. But I have a problem with the way the bank handled this. I don’t need a new car, don’t want a new car, wouldn’t spend that much on a car, and certainly don’t want loan checks sent to my house (this has fraud potential written all over it if it falls into the wrong hands!).

While I didn’t like receiving this offer, I did learn a few things.

How to stop this from happening again

My immediate action was to call my bank and request they never send these offers to my home again. I understand they are doing their job in trying to drum up new business, but I don’t want loan checks sent to my house.

Credit card companies are notorious for sending unsolicited cash advance checks which come with hefty fees attached. I also call credit card companies and request they not send cash advance checks. Both of these are a “convenience,” according to the banks and credit card companies. But all they really do is make it easier for you to spend your money, or ID thieves and opportunists to steal from you. Cancel these checks!

Don’t let anyone tell you how much you need to spend

Wow. $50,000 is way more than I need to spend on a car. My wife and I each bought new cars a couple years ago and spent about $10,000 less than our loan offer… for two cars! When I bought my car, the dealer tried talking me into a larger model car with more add-ons, bells and whistles. Remember, it’s his job to sell, and your job to buy only what you need. I stood firm and bought the car I wanted at the price I wanted.

Don’t let anyone tell you when you need to spend

We’ve had our cars for 2-3 years now and they are paid off. The first thing our bank did after we paid the last loan payment for our car was to offer us another pre-approved car loan. This is probably an automatic action in their software.

Did the customer finish a loan payment? Yes… Great! Send them another loan offer!

No thanks! I’ll buy a car at my pace and when I need it. Not just because you tell me I can afford it!

A Fool and his money are soon parted

It’s your job to be vigilant with your spending. If you let banks and other lenders dictate your spending habits, you will never get ahead in life. Buy what you need, when you need it. But ignore the suggestions of people selling a product. Their only interest is making your money, their money.

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Patrick is the author of Cash Money Life, a blog about personal finance, career management, and self-improvement. He served in the United States Air Force, has traveled to over 35 countries, and is a fantasy baseball champion. He is an active lender at Prosper.

As we’ve been working to reduce our expenses, I am noticing that many things that we are saving money on are also helping the planet. We are producing less waste and being more purposeful with our spending. Whether you are looking to cut expenses or reduce your impact, here are twenty-five things you can do right now that will help you do both.

Utilities

Install a low flow showerhead - a typical shower can run 5 gallons a minute. If you install a low flow showerhead, you can cut that to 1.5 gallons a minute.

Turn off the water when brushing your teeth or washing dishes - If you aren’t actively using the water flow, turn it off in between uses and save some water.

Install CFL bulbs - CFL bulbs use about 75 percent less energy than standard incandescent bulbs and last up to 10 times longer.

Vary your cooking methods a little - Certain kitchen appliances use less energy than others (for a great list of costs for food prep, visit the City of College Station). Instead of using the oven, which costs over 85 cents/hr, can you use a crock pot which costs about a penny per hour?

Unplug unused electronics and appliances - That TV that is turned off may still be drawing power in standby mode. So is that microwave with the clock. Unplug those devices when not in use to save some electricity.

Plant trees - Depending on where it is planted, a single tree can block the wind in the winter, saving on heating costs. It can also provide shade in summer, saving on cooling costs. Trees are great for absorbing carbon dioxide.

Turn your thermostat down in the winter - There’s no golden rule that says a home must be at 70 all the time. In the winter, set your thermostat a little lower during the day and wear a sweatshirt around the house. In the summer, turn the thermostat up a little and wear lighter clothing around the house.

Caulk around doorways and use weather stripping to seal drafts. - A single draft in a room can make you feel a lot colder. Seal up the drafts and feel warmer in your home so you can keep the heat lower overall.

Use cold water for washing laundry - Did you know that 90% of the energy used for washing clothes is for heating the water? Give cold water a try when washing your clothes and also use cold-water detergents. As long as your clothes aren’t too soiled, they can come clean in cold water.

Hang dry your clothes - Dry your clothes on a clothes line outside or find a rack for drying your clothes inside. Save the electricity or gas that would be used by your dryer. Note: Sometimes clothes can get pretty stiff with air drying. What you can do is let them air dry most of the way, then pop into the dryer for a little bit to help them soften up.

Turn off your lights - When you aren’t using a light in a room, turn it off. That holds true even if you might be returning a few minutes later. The power surge of turning on that light only equals a few seconds of having that light on.

Around the House

Use natural cleaners - Avoid the harsh chemicals and save some money at the same time. Being Frugal has some easy cleaner recipes.

Give reusable coffee filters a try - Instead of loading your coffee maker every morning with a new filter, try a reusable one. They aren’t very expensive, but can reduce waste and save you money over the long run.

Use rechargeable batteries - It’s sometimes hard to fork over the money for rechargeable batteries. But they quickly pay for their cost in money saved if you are using electronics that drain batteries quickly (like cameras).

Forgo the plastic baggies in lunches - Instead of using plastic bags, use reusable containers if possible. The same goes for storing all types of food at home. If you need to use a plastic bag, try to reuse it if it held dry goods.

Get a reel mower - Go back in time with a reel mower that is updated for this century. They can do the job, you get some exercise and you don’t need fuel to run it.

Use both sides of paper when printing - If you are printing something for reading later, see if it would work to print on both sides of the paper. Some programs offer the option of printing even or odd pages, so you can try to match the pages up correctly. If the ink is too dark, try printing in draft.

Buy used furniture or find some for free - Instead of buying new, you may be able to find a perfect end table (or another piece of furniture) for low cost or maybe even for free on freecycle.org. A piece of furniture doesn’t end up in a landfill and you have the furniture you need. It’s a win-win!

Reduce junk mail - Save some paper and possibly prevent id theft by visiting the Federal Trade commission site that details how you can reduce unsolicited mail.

Switch to online bill payments - Many banks are offering online bill pay and some have it for free! Save a stamp and save on paper usage.

Mend anything that you can - If an article of clothing needs mending, don’t throw it out. Try to do it yourself by learning some basic sewing techniques.

Out and About

Carpool whenever possible - Not everyone can do this, but if it’s a possibility then jump on the chance to save some money and reduce carbon emission.

Ease up on the gas pedal - Drive moderately (not aggressively) and lower your speed to save some big bucks and help the environment at the same time. For some great results on tests, see Edmunds.com.

Skip the bottled water and refill your own - Save on plastic waste by filling a reusable water with your tap water. Don’t like the taste of your tap water? Try a filter.

Instead of spending the day inside, go outside - Get everyone out of the house and head outside for a fun day outdoors. Make sure you turn off everything when you leave the house. Go for a walk/bike ride or maybe plant a few flowers. Enjoy some time outdoors.

Photo Credit: 1

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Tricia is the blogger behind Blogging Away Debt. In her blog, she documents her family’s journey to pay off over $37,000 in credit card debt. Part of her debt reduction plan included a loan from Prosper.com. It originated in June of 2006 and was paid in full in October of 2007.

Everyone has a weakness. My weakness is Ruffles potato chips. Seriously. I can eat a family size bag in 2 sittings. But I don’t allow myself to do that. Not only is that unhealthy for my waistline, it is unhealthy for my wallet.

So I avoid Ruffles. I only eat them two or three times a year, and usually only at parties. Otherwise, I know I would buy them at the grocery store every week and probably weigh 20 pounds more than I do now.

I admit I have an addiction to those crispy, salty potato chips. But thankfully, I haven’t developed any serious spending addictions. That’s right, spending can be an addiction. And it can be a tough addiction to break because you can live without potato chips, but you can’t live without spending money.

Here is how you can break your spending addiction:

Know why you spend. Are you bored? Do you spend money for excitement? Do you equate things with wealth or security? Spending money is like any other addiction. It can calm you and make you feel more peaceful. But shopping is not a hobby. It is important to understand your spending habits and why you have them. Otherwise, you will continue on your path without being able to change your habits.

Acknowledge your habits and make an effort to change them. Now that you know why you spend money, you will only be able to change those habits if you are willing to do so.

Know your weakness and avoid them. I know I can’t buy a family size bag of Ruffles every time I go to the grocery store. I would eat the entire bag in a day or two and that just isn’t healthy. So I don’t buy them. It is important to recognize your spending weaknesses as well. Do you go to the mall after work to fight boredom - and come home with a new outfit you will never wear? Do you visit Best Buy once a week to check out the new HD TVs and walk out with a couple CDs or DVDs? How about that daily trip to the gas station? I know people who stop by the gas station on the way to work every morning and leave with a tall coffee and large muffin.

Change your habits. Go shopping with a plan. The mall is a great place to find things you plan on buying, but it’s a horrible place to spend recreational time. The same thing goes for Best Buy. Gas stations are for buying gas. Try stopping only for gas - and paying at the pump. My bet is that you will see instant results in your cash flow.

Hold yourself accountable, but reward yourself as well. Once you identify your areas for financial improvement, hold yourself accountable. Your efforts for change will fall flat unless there is something keeping you in line. You can hold yourself accountable by giving yourself small rewards along the way. The point of curbing your addictions isn’t to turn yourself into a monk, but to allow you to control your spending instead of having your spending controlling you.

It is OK to spend money, and it is OK eat potato chips. But do so with a plan. Know your limits and stick to them. Your wallet, and your waistline, will thank you.

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Patrick is the author of Cash Money Life, a blog about personal finance, career management, and self-improvement. He served in the United States Air Force, has traveled to over 35 countries, and is a fantasy baseball champion. He is an active lender at Prosper.

I came across this sad piece while looking through CNN Money recently:

“My wife and I have been saving our money for many years in hopes of buying a retirement home and living off our investments. No matter how much we saved, it seemed that housing prices continued to escalate beyond any reasonable bounds. We feel like fools for saving our money, which only gets eaten by inflation.”

Inflation is not the only problem. In the article above, another woman mentions she has to declare bankruptcy for a lack of health care. Another couple is about to lose their home for lack of health care. A health care disaster is the main cause of severe financial difficulties in America today. Entitlements are teetering and the impending demand from retiring Baby Boomers may push these programs over the edge into insolvency (although I’m sure we’ll tax our way out of it). The government bails out investment banks, rescuing the bonuses of top management (which would have been reclaimed in bankruptcy) but refuses to do the same for homeowners swamped by overwhelming mortgages. The Federal Reserve (and other central banks) continue to pump paper money into the system, creating a long slow death for the US dollar. Ridiculous measurements are used to gauge inflation while we all know that the price of living soars past any reasonable measure of inflation when you consider the cost of gas, heat, milk and even basic foodstuffs. A war in Iraq - whether you support it or not - will suck trillions of dollars out of the budget for a generation to come (don’t believe anyone who says they are withdrawing the troops - the troops will still be there in 2012; we can’t even withdraw our troops from Germany yet). People are whispering the “D” word.

My fear is that too many people (including me) buy into the aphorisms: the market always goes up over time. Index funds are a great way to invest. Real estate always goes up. The US can’t just collapse - we aren’t the Soviet Union, or the Weimar Republic. Banks are safe. The US dollar is the best currency in the world.

Let me tell you what IS true: Your greatest asset is, now and always, yourself. Don’t be cheap, be frugal. Buy high quality goods that last a long time, because they will always have value. Do not ever believe that someone will be there to help you when times get bad: not the government, not your employer, not your neighbors or even your family or friends (because they may have troubles of their own). Expect times to be good, but prepare for times to be bad. Stay healthy; the single greatest risk to your wealth in America is to GET SICK.

That may seem overly pessimistic, but it is true. Don’t assume that dropping 15% into a 401K, having $1000 in an emergency fund and having a “steady job” are enough to protect you and your family. True protection comes from staying healthy, diversifying your income streams and investing nonstop in your greatest asset - yourself. You have to keep investing and saving and buying houses and paying down your debt, but never forget that even the most brutally frugal lifestyle is absolutely no guarantee of financial safety - or even stability.

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Steve S. is the author of Brip Blap, a blog about personal finance, health, career management, productivity and self-improvement. He lives and works as a contract governance and audit consultant in the New York City area, and has lived in Germany and Russia. He is an active lender at Prosper.

A couple of weekends ago, I a good friend of mine invited me out on his boat. It was beautiful day, around 80 degrees and not a cloud in the sky. We headed on up to McCovey Cove to sit outside the San Francisco Giants stadium and enjoy the day. There’s also the small chance that someone will hit a homerun into the boat. And as it turned out John Bowker of the home team delivered his first major league homerun into the water. We never had a chance to retrieve it as someone with a telescoping net from within the stadium scooped it up. Nonetheless, short of winning the lottery it was the perfect day.

Maybe it was the perfect day or maybe I got a little too much sun, but I found myself thinking about the future. How many days like today will I experience? If my wife and I have kids and grandkids, will they be able to enjoy the same fresh air? It was that thought that triggered my wife and me to finally recycle some old electronics that we had sitting around the house. Thought it was a shame that doing the right thing left our wallets $18 lighter (we had to pay to recycle the electronics), we realized that in the grand scheme it’s a small price to pay.

You don’t have to lighten your wallet to make a difference. Here are just a few tips to get you started:

• Use Compact Fluorescent Light Bulbs - This is the definitive way to save money and the environment. They are a much more efficient than incandescent bulbs.
• Don’t Drink Bottled Water - Especially avoid imported bottle water. Instead, get a filtered water pitcher and a refillable bottle.
• Read The Good Human. It’s full of tips on how to do things in a more environmentally friendly way. The writer is modest, he’s a great human. I’m only an okay human.
• Recycle Aluminum Cans - The price of aluminum keeps rising. That means people will pay you for your efforts. Some states charge a deposit so by not recycling you are throwing money away.
• Donate Items You Don’t Use To Charity - You can earn yourself a nice tax break.
• Drive a Small Car - I’m not going to suggest you sell your current car and buy a small one, but consider a fuel-efficient car when you buy your next car. Better yet, carpool when you can.

I know you have a lot more tips. Submit your favorites in the comments. Remember, a lot of people doing a few little things can really make a difference.

Photo Credit: 1

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Lazy Man has been a lender at Prosper since February 2006. He is the author of the personal finance blog, Lazy Man and Money and the health and fitness blog, Lazy Man and Health.