Reading the title of this edition of frugal living tips you are probably thinking to yourself, Thank-you Captain Obvious. Well, while the notion of saving money by purchasing used is not exactly groundbreaking, I'm here to remind you that the majority of us don't take this powerful saving tool far enough.
What do I mean by this? Start by taking stock of some of the possessions in your house. Sure, you got that sofa by replying to an ad in the local classifieds, that table lamp came from a garage sale, and those jeans came from a thrift store. But what about your TV, dishes, tennis rackets, winter parka? What about your car, or your house? Odds are the majority of the items in your household were probably bought new at the store. But just about every material good you own, regardless of how big or small, could have been purchased at a significant discount if you had bought it used.
The two most expensive purchases - a house and a car - are often purchased new, despite the immediate depreciation that occurs as soon as we sign the papers. But, wait a minute, houses are an appreciating asset, aren't they? This is true, in most real estate markets, however when you purchase new you will face the applicable sales tax. Here in Canada that is a 5% GST tax added to the purchase. Not exactly peanuts when applied to a $400,000 sale. Now you've paid $420,000 for your nice new home. Compare that to a five year old home with the same specs in the same neighborhood. Because it is not brand new they cannot justify pricing it at the same level as the new home down the street. Instead this home sells for $370,000, with no applicable sales tax. Purchasing the used home could have saved you $50,000! Project the interest paid on that extra $50,000 over the term of your mortgage, and you can probably double that number. A pretty hefty premium to pay just to have the privilege of being the first occupant.
Cars are even worse. Not only do you pay sales tax and freight charges on a new car, but they are a depreciating asset! As soon as you drive it off the lot its value starts to erode, and in five years, when you've finally finished paying for it, it will likely be worth less than half what you paid. The solution is simple: Let someone else pay that depreciation. Shop around, and read consumer reports on automobiles 3-5 years old. Look for gas efficiency and reliability above all. One of the major reasons people buy new cars (or even worse, lease!) is because they don't want to be hassled with maintenance problems. If you do your research carefully you can find a solid, reliable used car and enjoy nearly the same level of peace of mind, but at less than half the cost!
So, those are the big ticket items, but that is just the tip of the iceberg. Whenever you have a need or a want, get yourself out of the habit of heading down to the department store. Instead, start your search in the local classifieds (print and online), head to garage sales, thrift stores, flea markets. Everything you need is being sold used by someone somewhere, and often at a discount of up to 90% off what you would pay for it new. Even popular items will be sold at least a slight discount to their retail counterparts. Someone selling used items for the same price as new aren't going to do very much business.
Turn your search into a game. Comparison shop even among used goods, and try and find the absolute best bargain possible. You might have to wait a few days, but eventually you'll come across what you are looking for at a smokin' price. By applying this technique to every item you buy, from forks to fridges, you can cut your discretionary spending in half!
There is another bonus perk if you are purchasing goods directly from other individuals, rather than businesses. In most cases, they will not accept credit cards. Cash is king for person to person transactions. This forces you to only buy what you currently have money for - a great impulse check and yet another way to keep those credit card balances minimal.
Financial Planning - 5 Ways Of Not Overspending When On Vacation
Most people look forward to vacations the entire year. It is a time of relaxation and of family bonding. Some families meet new places, some go to the same location every year, and some just stay home and rest. It does not really matter where the holiday takes place, but how much you spend on them. Following you will find some tips on how to enjoy your free time without spending more than you need to.
Savings: Key To An Unforgettable Trip
If you still have a good four or five months before departing, then this recommendation will fit you like a glove. If each month you put aside 10%-15% of your income and destine it solely to a vacation fund, then when the time to pay for that trip comes, you will have saved enough for the expenditure not to hit your finances so hard. Setting aside such a low monthly percentage will help you to save without you even noticing it. And what is more, you can apply this technique not only to trips, but to anything else you might want or need.
Coupons And Promotions: Your Best Friends
It will be a good idea for you to surf the web in search of any promotion that might help you to save a few bucks in your trip. If you usually travel by plane for business or something of the sort, you might have many frequent flier miles, which will be great if you are flying to your special destination. Otherwise, you will be able to contact tourist information and they will let you know if they offer any promotions on accommodation or transportation.
Budget: Keep Focused On It
Nowadays, many households make financial plans before leaving for holidays. They include the cost of the essentials, such as food, accommodation, transportation, etc, and try to make out how much money they will spend without going overboard. Now you and your family have your brand new budget and you are about to leave for your very much expected holidays, everything is perfect. Once you get to your destination, you have to stay focused on that little piece of paper on your pocket or daily planner. Most people tend to forget they ever made a budget and start spending like crazy, do not let this be your case. Concentration and motivation are essential.
Credit Cards And You: Learn To Go Separate Ways
Evidently, bringing your credit cards with you on your trip is a very accurate decision. In case of an emergency, credit cards can really come in handy. But it is advisable not to carry them around with you. If you leave the hotel, leave them there. Keep them somewhere safe, but not with you. Why, you might be wondering. To resist temptation. If you only have cash with you, the necessary amount for you and your family to dine out, or to go to that excursion you had in mind, you will not be able to spend it on unnecessary things. Otherwise, it will be very easy for you to get carried away and to pay everything with your plastic card.
Savings: Key To An Unforgettable Trip
If you still have a good four or five months before departing, then this recommendation will fit you like a glove. If each month you put aside 10%-15% of your income and destine it solely to a vacation fund, then when the time to pay for that trip comes, you will have saved enough for the expenditure not to hit your finances so hard. Setting aside such a low monthly percentage will help you to save without you even noticing it. And what is more, you can apply this technique not only to trips, but to anything else you might want or need.
Coupons And Promotions: Your Best Friends
It will be a good idea for you to surf the web in search of any promotion that might help you to save a few bucks in your trip. If you usually travel by plane for business or something of the sort, you might have many frequent flier miles, which will be great if you are flying to your special destination. Otherwise, you will be able to contact tourist information and they will let you know if they offer any promotions on accommodation or transportation.
Budget: Keep Focused On It
Nowadays, many households make financial plans before leaving for holidays. They include the cost of the essentials, such as food, accommodation, transportation, etc, and try to make out how much money they will spend without going overboard. Now you and your family have your brand new budget and you are about to leave for your very much expected holidays, everything is perfect. Once you get to your destination, you have to stay focused on that little piece of paper on your pocket or daily planner. Most people tend to forget they ever made a budget and start spending like crazy, do not let this be your case. Concentration and motivation are essential.
Credit Cards And You: Learn To Go Separate Ways
Evidently, bringing your credit cards with you on your trip is a very accurate decision. In case of an emergency, credit cards can really come in handy. But it is advisable not to carry them around with you. If you leave the hotel, leave them there. Keep them somewhere safe, but not with you. Why, you might be wondering. To resist temptation. If you only have cash with you, the necessary amount for you and your family to dine out, or to go to that excursion you had in mind, you will not be able to spend it on unnecessary things. Otherwise, it will be very easy for you to get carried away and to pay everything with your plastic card.
Have More Money in Your Pocket With These Financial Tips
No one ever said that managing your finances is an easy thing to do. Many of us have a difficult time living on a tight budget. One positive is that through smart planning with the help of some basic knowledge of refinancing, you can save a good deal of money. Better yet, you can watch it grow. That's why you need to find ways of financing to put more money in your pockets.
There are a number of different options you can take when it comes to learning more about finances. The most important is probably have some good common sense. The trick is to focus in on your goals and find solutions to what's holding you back from having money. Here are some simple ways you can begin putting money back into your pocket instead of paying it out to someone else:
* Start with debt management - If you are buried under credit card debt, one thing to take refuge is the fact you're not the only one. Nearly everyone you meet has some sort of credit card problems. One way to If you're mired in credit card debt, you're not alone. I recommend refinancing your mortgage as a way of cutting into that debt. A mortgage refinance can get you a lower interest rate than most credit cards, leading to significant savings of money in the long run. Another option is for you to consolidate those debts too.
* Be aware of all your interest rates - Ok, maybe you're not in financial debt or trouble but you may be losing money by not paying attention to it. If you have money saved into account or in investments with too low of an interest rate, you're losing money that can be potentially be making. This happens most often in checking and savings accounts that pay extremely low interest rates. That interest rate can even be voided from the the pace of inflation. Financial experts are saying to move your money to a liquid money market. This pays a higher return.
* Open a home equity line of credit - I'm sure you've heard to save your money for a rainy day. The old line of thinking was to save three to six months worth of your salary on hand in case you ever found yourself in a financial crisis. You can do that or you could use that money for more lucrative money making potential. Try going with a home equity line of credit for your emergency or rainy day fund. This way the only risk you face is paying on the interest rate of any money you use from that line of credit.
* Refinance - Refinancing isn't the end all answer to your financial problems. It can , however, make life a little easier but saving you a good deal of money. Do some research on current mortgage rates and then compare them with your mortgage. If you discover you are paying a percentage or two more than you should be, I recommend refinance your loan. Another option is to refinance to one with a shorter term. This can save you thousands of dollars in long-term interest.
There are a number of different options you can take when it comes to learning more about finances. The most important is probably have some good common sense. The trick is to focus in on your goals and find solutions to what's holding you back from having money. Here are some simple ways you can begin putting money back into your pocket instead of paying it out to someone else:
* Start with debt management - If you are buried under credit card debt, one thing to take refuge is the fact you're not the only one. Nearly everyone you meet has some sort of credit card problems. One way to If you're mired in credit card debt, you're not alone. I recommend refinancing your mortgage as a way of cutting into that debt. A mortgage refinance can get you a lower interest rate than most credit cards, leading to significant savings of money in the long run. Another option is for you to consolidate those debts too.
* Be aware of all your interest rates - Ok, maybe you're not in financial debt or trouble but you may be losing money by not paying attention to it. If you have money saved into account or in investments with too low of an interest rate, you're losing money that can be potentially be making. This happens most often in checking and savings accounts that pay extremely low interest rates. That interest rate can even be voided from the the pace of inflation. Financial experts are saying to move your money to a liquid money market. This pays a higher return.
* Open a home equity line of credit - I'm sure you've heard to save your money for a rainy day. The old line of thinking was to save three to six months worth of your salary on hand in case you ever found yourself in a financial crisis. You can do that or you could use that money for more lucrative money making potential. Try going with a home equity line of credit for your emergency or rainy day fund. This way the only risk you face is paying on the interest rate of any money you use from that line of credit.
* Refinance - Refinancing isn't the end all answer to your financial problems. It can , however, make life a little easier but saving you a good deal of money. Do some research on current mortgage rates and then compare them with your mortgage. If you discover you are paying a percentage or two more than you should be, I recommend refinance your loan. Another option is to refinance to one with a shorter term. This can save you thousands of dollars in long-term interest.
Debit Card - What It Is And How It Works
Do you remember the days when the debit card was the most important means of transacting business? Very few people then had credit cards. Together with the check book, it was the primary means of doing transactions. Those were the days when there were very few credit-card owners.
So what exactly is a debit card and how does it work? It is like a credit card, made of plastic and is used as an alternative payment methods to cash when purchases are made. Typically, it is directly linked to the card holder's account. Whenever they are used to do transactions, the card holder's account is automatically deducted.
Here is an example of how it works. John Doe has one that is tied to his savings account. He has an opening balance of $15,000. Now since it is tied to a savings account, John Doe can use his card to do $15,000 worth of transactions, either in the form of purchases or ATM withdrawals.
Many debit cards have a maximum withdrawal amount per cycle built into them. For instance, you may have a withdrawal limit of $3,000 every three days. What this means is even though there may be more than $3,000 in your account, they can only withdraw up to $3,000 in any three day cycle. This particular feature was used to safeguard cardholders against possible theft and the subsequent draining of the cardholder's account.
Coming back to the example above - assuming John Doe had a three day cycle limit of $3,000, and he made a purchase of a stereo set costing $1,500 on day one, the balance on his savings account would now stand at $13,500, and over the next two days he will only be able to do ATM withdrawals and or purchases to the tune of a $1,500. Again, this feature is designed to protect the card holder against theft.
If after doing a number of transactions, John Doe brought down the balance in his savings account to $1,000, then this is all that will be available to him even though he has a three day withdrawal cycle of $3,000.
Debit cards are a safe means of making purchases since it saves the purchaser from having to walk around with cash in order to make his or her purchasers.
When this was the primary tool for making purchases, it kept card owners out of financial trouble since they could only use or withdraw what was in their account, and could not overdraw their balances.
Now how is John Doe's account updated each time a transaction is done? Each debit card has a black strip at the back of it. This is known as the magnetic strip and contains information about the card holder that cannot be seen by the naked eye. This information includes the card holder's name, banking institution, bank account, branch, and other pertinent information. When the card is used to either do ATM withdrawals or purchases from merchants, a card reader is used to initiate and conduct the transaction. In the case of an ATM withdrawal, the debit card owner place is the card in the card reading mechanism, and enters a Personal Identification Number or PIN that identifies him or her to the system. This is validated by the machine and opens the way for the cardholder to do an ATM transaction. Withdrawals of amounts that fall within the account owner's balance will be honored. All others will be declined.
When the cardholder makes a purchase, pretty much the same steps are carried out as if he were going to do and ATM transaction. The only difference here is instead of the big ATM machine, the merchant to have a much smaller hand-held cards Reading machine. The steps a pretty much the same. The merchant swipes the debit card in the card Reading mechanism then enters the amount of the transaction. The card owner must now validate the transaction by entering his of her Personal Identification Number. Once all is correct up to this point, the card reading machine would now use the network that is in place to determine whether the cardholder has funds in his or her account. If they do the transaction is completed. If they do not the transaction is declined.
While debit cards are not as popular as credit-cards, they're certainly a very valuable tool for anyone who is serious minded about savings and monitoring their indebtedness to financial institutions. Since the debit card typically works with the card owner's available balance, it negates the whole credit process thus helping the cardholder to avoid on necessary indebtedness. It disciplines the card owner into managing their personal finance and thus saving credit facilities for when they are really needed. That being said, they are an excellent means of rebuilding your credit.
So what exactly is a debit card and how does it work? It is like a credit card, made of plastic and is used as an alternative payment methods to cash when purchases are made. Typically, it is directly linked to the card holder's account. Whenever they are used to do transactions, the card holder's account is automatically deducted.
Here is an example of how it works. John Doe has one that is tied to his savings account. He has an opening balance of $15,000. Now since it is tied to a savings account, John Doe can use his card to do $15,000 worth of transactions, either in the form of purchases or ATM withdrawals.
Many debit cards have a maximum withdrawal amount per cycle built into them. For instance, you may have a withdrawal limit of $3,000 every three days. What this means is even though there may be more than $3,000 in your account, they can only withdraw up to $3,000 in any three day cycle. This particular feature was used to safeguard cardholders against possible theft and the subsequent draining of the cardholder's account.
Coming back to the example above - assuming John Doe had a three day cycle limit of $3,000, and he made a purchase of a stereo set costing $1,500 on day one, the balance on his savings account would now stand at $13,500, and over the next two days he will only be able to do ATM withdrawals and or purchases to the tune of a $1,500. Again, this feature is designed to protect the card holder against theft.
If after doing a number of transactions, John Doe brought down the balance in his savings account to $1,000, then this is all that will be available to him even though he has a three day withdrawal cycle of $3,000.
Debit cards are a safe means of making purchases since it saves the purchaser from having to walk around with cash in order to make his or her purchasers.
When this was the primary tool for making purchases, it kept card owners out of financial trouble since they could only use or withdraw what was in their account, and could not overdraw their balances.
Now how is John Doe's account updated each time a transaction is done? Each debit card has a black strip at the back of it. This is known as the magnetic strip and contains information about the card holder that cannot be seen by the naked eye. This information includes the card holder's name, banking institution, bank account, branch, and other pertinent information. When the card is used to either do ATM withdrawals or purchases from merchants, a card reader is used to initiate and conduct the transaction. In the case of an ATM withdrawal, the debit card owner place is the card in the card reading mechanism, and enters a Personal Identification Number or PIN that identifies him or her to the system. This is validated by the machine and opens the way for the cardholder to do an ATM transaction. Withdrawals of amounts that fall within the account owner's balance will be honored. All others will be declined.
When the cardholder makes a purchase, pretty much the same steps are carried out as if he were going to do and ATM transaction. The only difference here is instead of the big ATM machine, the merchant to have a much smaller hand-held cards Reading machine. The steps a pretty much the same. The merchant swipes the debit card in the card Reading mechanism then enters the amount of the transaction. The card owner must now validate the transaction by entering his of her Personal Identification Number. Once all is correct up to this point, the card reading machine would now use the network that is in place to determine whether the cardholder has funds in his or her account. If they do the transaction is completed. If they do not the transaction is declined.
While debit cards are not as popular as credit-cards, they're certainly a very valuable tool for anyone who is serious minded about savings and monitoring their indebtedness to financial institutions. Since the debit card typically works with the card owner's available balance, it negates the whole credit process thus helping the cardholder to avoid on necessary indebtedness. It disciplines the card owner into managing their personal finance and thus saving credit facilities for when they are really needed. That being said, they are an excellent means of rebuilding your credit.
Winning Tips for Spread Betters
I have been trading futures, options and equities for many years. As well as trading my own money I have traded money for banks and I have been a broker for private clients. Over the years I have been fascinated to discover the difference between winners and losers in this business.
Try to learn from the points I am about to give you.
1. To maximise profits, Direct Market Access (DMA) and Level 2 are essential. This allows me to see the strength of the order book and place an order either inside the spread or join the queue outside the spread. Over time this has a huge bearing on trading efficiency.
2. The broker I use allows me to go straight to the market and does not charge a commission. There is no stamp duty and of course no income tax or capital gains tax on profits. Again this has a huge impact on trading efficiency.
3. I have only really read one book on how the market operates and that is 'The UK Trader's Bible by Dominic Connolly'. I wish him well on the other side of the world.
4. It is essential to have a high aptitude for risk and a gambling mentality. Conversely you have to be risk aware and all the time you are trying to make your trades more efficient by getting the odds on your side. I know what I mean here but hard to explain.
5. Outside spread betting I chiefly invest in small cap companies. Spread betting on FTSE 100 companies requires a greater awareness of the macro economic picture. For example, prices can move rapidly when economic news is released, it is essential to be in front of the screen when this happens. Likewise, London prices react to movements on Wall Street so an eye has to be kept on the Dow Jones Index.
6. Avoid the temptation to take positions outside your chosen sphere of knowledge. I got to know "my shares" well but once or twice was tempted to take a position on a share I did not know which had experienced a sudden price movement. It usually was not a good move.
As I said at the beginning I am no expert on spread betting and I am sure there are many books which set out techniques and strategies far better than I have. What I do know is that the above has worked for me and I have managed to recoup the losses of last year with some profit left over. I am sure that there are many flaws in what I have written and yes luck did play its part.
I used to work for a group which had a spread betting division, I had no involvement with the division but I know from talking to the guys who ran it that most spread betters end up making losses. I therefore do not encourage anyone to follow in my footsteps but if you do, be aware that the losses can be far higher than your initial stake. It is not a game for the faint hearted.
It is hard work and can be very draining. For that reason and also because a torn muscle has healed at least I hope it has, I am returning to the golf course for the summer months and my spread betting career is over for the time being.
Try to learn from the points I am about to give you.
1. To maximise profits, Direct Market Access (DMA) and Level 2 are essential. This allows me to see the strength of the order book and place an order either inside the spread or join the queue outside the spread. Over time this has a huge bearing on trading efficiency.
2. The broker I use allows me to go straight to the market and does not charge a commission. There is no stamp duty and of course no income tax or capital gains tax on profits. Again this has a huge impact on trading efficiency.
3. I have only really read one book on how the market operates and that is 'The UK Trader's Bible by Dominic Connolly'. I wish him well on the other side of the world.
4. It is essential to have a high aptitude for risk and a gambling mentality. Conversely you have to be risk aware and all the time you are trying to make your trades more efficient by getting the odds on your side. I know what I mean here but hard to explain.
5. Outside spread betting I chiefly invest in small cap companies. Spread betting on FTSE 100 companies requires a greater awareness of the macro economic picture. For example, prices can move rapidly when economic news is released, it is essential to be in front of the screen when this happens. Likewise, London prices react to movements on Wall Street so an eye has to be kept on the Dow Jones Index.
6. Avoid the temptation to take positions outside your chosen sphere of knowledge. I got to know "my shares" well but once or twice was tempted to take a position on a share I did not know which had experienced a sudden price movement. It usually was not a good move.
As I said at the beginning I am no expert on spread betting and I am sure there are many books which set out techniques and strategies far better than I have. What I do know is that the above has worked for me and I have managed to recoup the losses of last year with some profit left over. I am sure that there are many flaws in what I have written and yes luck did play its part.
I used to work for a group which had a spread betting division, I had no involvement with the division but I know from talking to the guys who ran it that most spread betters end up making losses. I therefore do not encourage anyone to follow in my footsteps but if you do, be aware that the losses can be far higher than your initial stake. It is not a game for the faint hearted.
It is hard work and can be very draining. For that reason and also because a torn muscle has healed at least I hope it has, I am returning to the golf course for the summer months and my spread betting career is over for the time being.
Taking Care of Business At Home - A Personal Finance Checklist
Why would you not consider yourself a business of ONE person? Or your family as a business of 3 or more people? Well that is exactly what you are - "Me Incorporated", "I Inc", "We Incorporated". You truly must consider yourself a small family business. Like any business you have ongoing expenses (mortgage, rent, utilities, groceries), revenue (salary and other income) and major capital expenditures (house, vehicle, vacations, renovations).
Like any good 'household business', you need to do some planning. Set out a budget for the year, track your expenditures and retained earnings (savings). Yes, all of this looks, feels and is exactly like a well run business. On My Gosh! Don't rush out and buy an accounting package to run your household. And no need to take a crash course on accounting or bookkeeping. You can accomplish all your financial tracking and planning requirements with some paper or by using a simple template with your favorite spreadsheet package - Microsoft Excel or even with Open Office.
Just like a well run business, your household budget and tracking your spending is best served using a visible record of events; namely, financial records, bank or check register. It is just like tracking your road trip progress using a map. If you know where you are now, then you will have some idea when you will arrive at your destination. In life, money or finances allows you to get to your personal destinations or dreams. A visible financial roadmap of your 'Me Incorporated' finances, mapping your progress, seems logical.
Running your 'Household Business', like corporate business, requires a few processes to keep track of your finances:
1) Establish a yearly and monthly household budget. Consider all your expenses - weekly, monthly, quarterly and yearly outlays of money. You will be surprised at the length of this list and all the places you spend your money.
2) Track monthly your actually spending and income against the budget you established in step 1. This will help you see the 'peaks and valleys' of spending or seasonality aspect of your expenses. Over time, you will come to know these expense 'peaks and valleys' and this will help you maintain a positive cash flow. Bottom line: have money in the bank to pay all your expenses and still have some left over (retained earnings). Your single biggest challenge in running any household (or business) is always having enough money in the bank to pay the bills; especially, the unexpected ones. Having a buffer of savings will help with these 'peaks' in expenses.
3) Track all your bank account activity. Track and enter in your Bank or Check Register every deposit, every electronic (ATM, web, PayPal, debit machine) transaction and every analog (check, money order) withdrawal. And reconcile your bank statement every month. Know exactly how much money you have available in your bank account(s).
4) Especially track your spending through credit cards and lines of credit. These are potentially the 'run away' expenses. Remember only once a month do you see the visible record of your credit card spending. Compound that with the fact that most people have more than one credit card. This can easily result in multiple 'spending surprises' each month. Be diligent in tracking your use of credit card transactions. Breakdown the credit card expenses into their respective budget items - gas, groceries, clothing, entertainment, etc. This will help you separate normal household expenditures from other shopping incidentals. You will come to see your spending patterns and can now make adjustments. Just like your bank account, reconcile your credit card statement every month.
Like any good 'household business', you need to do some planning. Set out a budget for the year, track your expenditures and retained earnings (savings). Yes, all of this looks, feels and is exactly like a well run business. On My Gosh! Don't rush out and buy an accounting package to run your household. And no need to take a crash course on accounting or bookkeeping. You can accomplish all your financial tracking and planning requirements with some paper or by using a simple template with your favorite spreadsheet package - Microsoft Excel or even with Open Office.
Just like a well run business, your household budget and tracking your spending is best served using a visible record of events; namely, financial records, bank or check register. It is just like tracking your road trip progress using a map. If you know where you are now, then you will have some idea when you will arrive at your destination. In life, money or finances allows you to get to your personal destinations or dreams. A visible financial roadmap of your 'Me Incorporated' finances, mapping your progress, seems logical.
Running your 'Household Business', like corporate business, requires a few processes to keep track of your finances:
1) Establish a yearly and monthly household budget. Consider all your expenses - weekly, monthly, quarterly and yearly outlays of money. You will be surprised at the length of this list and all the places you spend your money.
2) Track monthly your actually spending and income against the budget you established in step 1. This will help you see the 'peaks and valleys' of spending or seasonality aspect of your expenses. Over time, you will come to know these expense 'peaks and valleys' and this will help you maintain a positive cash flow. Bottom line: have money in the bank to pay all your expenses and still have some left over (retained earnings). Your single biggest challenge in running any household (or business) is always having enough money in the bank to pay the bills; especially, the unexpected ones. Having a buffer of savings will help with these 'peaks' in expenses.
3) Track all your bank account activity. Track and enter in your Bank or Check Register every deposit, every electronic (ATM, web, PayPal, debit machine) transaction and every analog (check, money order) withdrawal. And reconcile your bank statement every month. Know exactly how much money you have available in your bank account(s).
4) Especially track your spending through credit cards and lines of credit. These are potentially the 'run away' expenses. Remember only once a month do you see the visible record of your credit card spending. Compound that with the fact that most people have more than one credit card. This can easily result in multiple 'spending surprises' each month. Be diligent in tracking your use of credit card transactions. Breakdown the credit card expenses into their respective budget items - gas, groceries, clothing, entertainment, etc. This will help you separate normal household expenditures from other shopping incidentals. You will come to see your spending patterns and can now make adjustments. Just like your bank account, reconcile your credit card statement every month.
Top 5 Reasons to Avoid Store Cards
Store cards are a form of credit card where a consumers can spend on the card and then either repay the balance in full at the end of each month in order to avoid interest, or can spread the repayments on the card over a period of time, in which case interest will be charged on the balance until it has been repaid in full. Although more and more shops are now offering store cards, there are not many benefits to having these cards and they can quickly lead to mounting debt for the consumer. Below you will find five of the top reasons to avoid taking out store cards:
1. The interest rates. The rate of interest charged on most store cards if the balance is not repaid in full at the end of each month can be extremely high, and can quickly add to the balance, leaving the cardholder in increasing debt. Those that make minimum repayments on the card will fare particularly badly as they will be the ones that are hit hardest by the interest payments.
2. Temptation. Store cards are well known for increasing the chances of impulse buying, and many sales staff at shops bank on consumers' impulsive streaks in order to get them to sign up for a card. When you sign up for a store card you often end up purchasing something you would otherwise not have bought simply because the salesperson offers you a discount for taking out the card. In addition, future discounts may encourage you to make purchases that are unnecessary, and if you don't repay the balance in the interest free period any discount will be counteracted by interest charges anyway.
3. No cash transaction facilities. A store card does not enable you to make cash withdrawals and transactions, and this means that if you need cash in an emergency you will certainly not be able to rely on your store card. You would be far better off with a credit card, as this allows you to withdraw cash or make cash transactions should you need to, although these are best avoided wherever possible due to high charges that are applied.
4. Restrictions of use. With a store card you are very restricted in terms of where you can use it. You can only use your store card in a particular shop or chain of shops, and this means that you have very little in the way of choice. You may be able to get the same or a similar product cheaper elsewhere but may end up going for the most expensive one simply because you have a store card for that particular retailer.
5. False economy. Many store cards offer a range of discounts to cardholders when it comes to their products. However, unless you tend to repay your balance in full at the end of each month -in which case you would fare far better with a rewards based credit card due to increased freedom and a choice of rewards- any discounts would be counteracted by the very high rates of interest charged on your balance.
1. The interest rates. The rate of interest charged on most store cards if the balance is not repaid in full at the end of each month can be extremely high, and can quickly add to the balance, leaving the cardholder in increasing debt. Those that make minimum repayments on the card will fare particularly badly as they will be the ones that are hit hardest by the interest payments.
2. Temptation. Store cards are well known for increasing the chances of impulse buying, and many sales staff at shops bank on consumers' impulsive streaks in order to get them to sign up for a card. When you sign up for a store card you often end up purchasing something you would otherwise not have bought simply because the salesperson offers you a discount for taking out the card. In addition, future discounts may encourage you to make purchases that are unnecessary, and if you don't repay the balance in the interest free period any discount will be counteracted by interest charges anyway.
3. No cash transaction facilities. A store card does not enable you to make cash withdrawals and transactions, and this means that if you need cash in an emergency you will certainly not be able to rely on your store card. You would be far better off with a credit card, as this allows you to withdraw cash or make cash transactions should you need to, although these are best avoided wherever possible due to high charges that are applied.
4. Restrictions of use. With a store card you are very restricted in terms of where you can use it. You can only use your store card in a particular shop or chain of shops, and this means that you have very little in the way of choice. You may be able to get the same or a similar product cheaper elsewhere but may end up going for the most expensive one simply because you have a store card for that particular retailer.
5. False economy. Many store cards offer a range of discounts to cardholders when it comes to their products. However, unless you tend to repay your balance in full at the end of each month -in which case you would fare far better with a rewards based credit card due to increased freedom and a choice of rewards- any discounts would be counteracted by the very high rates of interest charged on your balance.
Top 5 Tips on Easing the Financial Hangover
After Christmas and New Year celebrations have finished many of us find that we are left feeling tired, drained of energy, and worse still drained of money. The Christmas period can be a very financially demanding one, and once the festive season is over many of us take stock of our finances only to discover that we have spent far more than we originally planned leaving us facing financial difficulties.
In order to ease the financial hangover that can hit many of us at this time of year there are a number of steps that you can take. This include:
1. Check whether you can get a better deal on your credit card. If you have used your credit card to fund Christmas and you are being charged a high rate of interest you may find that one way to save money is to switch your card to another type of card, such as a 0% balance transfer card, which will allow you additional time without being charged interest to repay your balance. This could save you a small fortune in terms of interest.
2. Could consolidation help? If you have accrued a fair amount of debt over the Christmas period with store cards, credit cards, loans, etc. and you already had some debt prior to this you may find that one effective solution is to wrap up all of these debts into one lower rate consolidation loan. This will ease financial management for you and could save you a fortune in interest. It could also help to reduce the amount that you pay out each month.
3. Cut out your unnecessary spending. Most of us splash out more on going out, buying clothes, and treating ourselves over the festive season, but you should avoid continuing this into the New Year. Try making a few cutbacks when it comes to shopping for non-essentials and going out - the money you save could be put towards the debt you have accrued over Christmas or you could put it aside in savings towards next Christmas.
4. Don't hoard what you don't need. Let's face it - we all get presents over the Christmas period that we did not really want and will not use. If this is the case why not look at getting rid of some of these gifts rather than hoarding them for prosperity. With portals such as Ebay available, selling your unwanted goods needn't be a hassle, and you could raise a fair amount of cash to put towards repayment of your debts.
5. List where you can make savings. Go through your accounts and make a list of services on which you could save money, such as your car insurance, home insurance, utilities, broadband, etc. Then use the various price comparison sites to see whether you could save money compared to what you are currently paying. If so, make the switch and you could soon be saving a small fortune each month to put towards repayment of your debt.
In order to ease the financial hangover that can hit many of us at this time of year there are a number of steps that you can take. This include:
1. Check whether you can get a better deal on your credit card. If you have used your credit card to fund Christmas and you are being charged a high rate of interest you may find that one way to save money is to switch your card to another type of card, such as a 0% balance transfer card, which will allow you additional time without being charged interest to repay your balance. This could save you a small fortune in terms of interest.
2. Could consolidation help? If you have accrued a fair amount of debt over the Christmas period with store cards, credit cards, loans, etc. and you already had some debt prior to this you may find that one effective solution is to wrap up all of these debts into one lower rate consolidation loan. This will ease financial management for you and could save you a fortune in interest. It could also help to reduce the amount that you pay out each month.
3. Cut out your unnecessary spending. Most of us splash out more on going out, buying clothes, and treating ourselves over the festive season, but you should avoid continuing this into the New Year. Try making a few cutbacks when it comes to shopping for non-essentials and going out - the money you save could be put towards the debt you have accrued over Christmas or you could put it aside in savings towards next Christmas.
4. Don't hoard what you don't need. Let's face it - we all get presents over the Christmas period that we did not really want and will not use. If this is the case why not look at getting rid of some of these gifts rather than hoarding them for prosperity. With portals such as Ebay available, selling your unwanted goods needn't be a hassle, and you could raise a fair amount of cash to put towards repayment of your debts.
5. List where you can make savings. Go through your accounts and make a list of services on which you could save money, such as your car insurance, home insurance, utilities, broadband, etc. Then use the various price comparison sites to see whether you could save money compared to what you are currently paying. If so, make the switch and you could soon be saving a small fortune each month to put towards repayment of your debt.
No BS Talk About Personal Finance
Below is a straight-talk, no bullshit article about personal finance:
1. You must have an earnings. This is basic, of course if you don't have an earnings, then you actually have no money thus nothing to manage. Look for something you love to do and earn from it - be it as an employee or as an entrepreneur. It doesn't really matter. What matter is that you "enjoy" what you do and at the same time earn from it. Why I suggest that you enjoy what you do and earn from it? So that it doesn't feel like work and you'll not feel burnt out. If you don't have a job, you can contact me.
2. Make sure your earnings are higher than your expenses. This is also important as you've got to have excess money to save up for "future needed funds". If you're earnings are lower than your expenses, you can either add-up another source of income (meaning, you don't have to leave what you currently do) or look for a better paying gig (meaning, don't waste your time and efforts in what you do, look for a greener pasteur). If you already have a job but wants to have another source of income or wants a better career, you can contact me.
3. Make sure to have a "6 months emergency fund". In USA, their only suggested to have a 3 months emergency fund. But here in the Philippines, there is no suggestions or whatsoever from the government. So, a lot of financial planners suggest people to have at least 6 months emergency fund. So if you're spending P10,000.00 every month, you should have an emergency fund of equivalent to P60,000.00. This fund will and only be used in case you temporarily loss income. This will be the fund you'll use while looking for another job or looking for another source of income. Your emergency fund should be placed in a very liquid investment instrument such as the savings account, a time deposit account, etc.
4. Make sure to have a yearly budget for health and medical bills. You don't want to use up your emergency fund should you or your family have a medical emergency. You and your family should have a health plan so that in the event that you or your family get sick or experienced an accident, you're well prepared for it. Your emergency fund is not intended for health or medical expenses so you better have a health plan. If you still don't have a health plan or wants to change your existing plan, you can contact me.
5. Make sure you have budget for different one-time big-time yearly expenses. One-time big-time yearly expenses are called Sinking Fund. This is used for one-time big-time yearly expenses such as Christmas, Valentines, Birthdays, etc. You should have a sinking fund for each and every one-time big-time yearly expenses you have where you save money on a monthly basis. You should never use your emergency funds for this.
6. If you have kids, make sure you have a budget for their education until they graduate. This is your responsibility as a parent thus it is NOT optional. You don't have a choice but to have this one. This is a packaged-deal for having kids. Tuition fees and other school needs increase every year, just like anything else, because of inflation. Unless you're a super dooper mega over rich person, you won't be needing to save up for your child's education. An educational plan can help you attain this one. I know that CAP, TPG, Pacific, and other preneed companies failed to deliver their promise on their educational plan holders. But a life insurance company is very much different to a preneed company. You should not be confused. A life insurance is a financial industry more like of a bank. It is strictly governed by a separate government entity called the Insurance Commission. There's a lot to talk about life insurance and this article is not the avenue for it as this is a straight-talk, no bullshit article about personal finance. Be closed-minded on these things, and you'll risk your child's future. I tell you, you can not save up for your child's education by yourself unless of course you have the "skill and knowledge" that most professional investors have. If you wish to know more about the education plans that life insurance companies offer, you can contact me.
7. In relation to number six, make sure you have a life insurance. A life insurance is a financial product used in the event of permanent income-loss due to total disability or worse, death. Your life insurance coverage (coverage is the amount that will be given to your beneficiaries (your spouse and/or children) in the event of your permanent income-loss) will depend on the lifestyle that your family have. If you don't have a life insurance or should you wish to know if your coverage is already enough for your family or not, you can contact me.
8. Make sure you have a retirement fund. This fund will be used by you by the time you no longer "actively" work for money (whether intentionally or unintentionally) for your daily/monthly expenses. Of course all of us will retire eventually whether by force or by choice. In this event, even though you've already retired from working, it doesn't mean that your expenses will also retire. It doesn't work like that. You retire from working for money but your expenses don't retire in asking for money. So, you've got to have a retirement fund for your expenses such as food, shelter, clothing, transpo, communication, medical/hospital, etc. The amount of your retirement fund will depend on your chosen lifestyle. You can never accumulate your needed funds in a savings account. You should use one or any or combination of different investment instruments such as stocks, bonds, real estate, mutual funds, UITF's, life insurance, variable life insurance, forex, etc.
1. You must have an earnings. This is basic, of course if you don't have an earnings, then you actually have no money thus nothing to manage. Look for something you love to do and earn from it - be it as an employee or as an entrepreneur. It doesn't really matter. What matter is that you "enjoy" what you do and at the same time earn from it. Why I suggest that you enjoy what you do and earn from it? So that it doesn't feel like work and you'll not feel burnt out. If you don't have a job, you can contact me.
2. Make sure your earnings are higher than your expenses. This is also important as you've got to have excess money to save up for "future needed funds". If you're earnings are lower than your expenses, you can either add-up another source of income (meaning, you don't have to leave what you currently do) or look for a better paying gig (meaning, don't waste your time and efforts in what you do, look for a greener pasteur). If you already have a job but wants to have another source of income or wants a better career, you can contact me.
3. Make sure to have a "6 months emergency fund". In USA, their only suggested to have a 3 months emergency fund. But here in the Philippines, there is no suggestions or whatsoever from the government. So, a lot of financial planners suggest people to have at least 6 months emergency fund. So if you're spending P10,000.00 every month, you should have an emergency fund of equivalent to P60,000.00. This fund will and only be used in case you temporarily loss income. This will be the fund you'll use while looking for another job or looking for another source of income. Your emergency fund should be placed in a very liquid investment instrument such as the savings account, a time deposit account, etc.
4. Make sure to have a yearly budget for health and medical bills. You don't want to use up your emergency fund should you or your family have a medical emergency. You and your family should have a health plan so that in the event that you or your family get sick or experienced an accident, you're well prepared for it. Your emergency fund is not intended for health or medical expenses so you better have a health plan. If you still don't have a health plan or wants to change your existing plan, you can contact me.
5. Make sure you have budget for different one-time big-time yearly expenses. One-time big-time yearly expenses are called Sinking Fund. This is used for one-time big-time yearly expenses such as Christmas, Valentines, Birthdays, etc. You should have a sinking fund for each and every one-time big-time yearly expenses you have where you save money on a monthly basis. You should never use your emergency funds for this.
6. If you have kids, make sure you have a budget for their education until they graduate. This is your responsibility as a parent thus it is NOT optional. You don't have a choice but to have this one. This is a packaged-deal for having kids. Tuition fees and other school needs increase every year, just like anything else, because of inflation. Unless you're a super dooper mega over rich person, you won't be needing to save up for your child's education. An educational plan can help you attain this one. I know that CAP, TPG, Pacific, and other preneed companies failed to deliver their promise on their educational plan holders. But a life insurance company is very much different to a preneed company. You should not be confused. A life insurance is a financial industry more like of a bank. It is strictly governed by a separate government entity called the Insurance Commission. There's a lot to talk about life insurance and this article is not the avenue for it as this is a straight-talk, no bullshit article about personal finance. Be closed-minded on these things, and you'll risk your child's future. I tell you, you can not save up for your child's education by yourself unless of course you have the "skill and knowledge" that most professional investors have. If you wish to know more about the education plans that life insurance companies offer, you can contact me.
7. In relation to number six, make sure you have a life insurance. A life insurance is a financial product used in the event of permanent income-loss due to total disability or worse, death. Your life insurance coverage (coverage is the amount that will be given to your beneficiaries (your spouse and/or children) in the event of your permanent income-loss) will depend on the lifestyle that your family have. If you don't have a life insurance or should you wish to know if your coverage is already enough for your family or not, you can contact me.
8. Make sure you have a retirement fund. This fund will be used by you by the time you no longer "actively" work for money (whether intentionally or unintentionally) for your daily/monthly expenses. Of course all of us will retire eventually whether by force or by choice. In this event, even though you've already retired from working, it doesn't mean that your expenses will also retire. It doesn't work like that. You retire from working for money but your expenses don't retire in asking for money. So, you've got to have a retirement fund for your expenses such as food, shelter, clothing, transpo, communication, medical/hospital, etc. The amount of your retirement fund will depend on your chosen lifestyle. You can never accumulate your needed funds in a savings account. You should use one or any or combination of different investment instruments such as stocks, bonds, real estate, mutual funds, UITF's, life insurance, variable life insurance, forex, etc.
Remove Foreclosure From Your Credit Report in Less than 7-10 Years
It is really no secret that homeowners are often cajoled into agreeing to expensive payment plans or selling homes that they have worked their whole lives to purchase, simply to keep themselves out of foreclosure and pay the lender several thousand more dollars to keep their homes for a few more months. They are threatened with the impossibility of getting a loan after foreclosure or even being able to rent an apartment in many cases. But is it really a drawback for former homeowners not to be able to enslave themselves to a corrupt banking industry propped up by theft through government inflation?
Obviously, having a low credit score is entirely irrelevant to the person who relies only on himself to pay his way through life. Maintaining a great score in order to be able to increase limits on credit cards, buy homes with subprime adjustable-rate mortgages, and get a shiny new car every two years purchased with the money of others should not create a strong desire on the part of homeowners who have previously found themselves in the credit trap.
So, on the one hand, many homeowners will simply want to unplug from the system entirely, and live a voluntary life of sustaining themselves through their own efforts and productive work, while living within their means. Living independently without a credit score and credit history to worry about can be extremely fulfilling.
But on the other hand, there is also a privacy concern for many people, who do not want just anyone to be able to pull their credit, see that they have had a foreclosure, and send them unsolicited mail for more low-end credit. Thus, removing the foreclosure and as much negative information as possible may be a worthy goal for homeowners, to sanitize their credit report and move on without its use and without worrying about the past.
There are really only two ways to get a foreclosure off of a credit record. The first is relatively easy but takes a long time, whereas the second is quite difficult but can be result in the immediate removal of foreclosure from a credit report.
The first option every foreclosure victim has is to wait the 7-10 years (depending on all the circumstances, state, etc.) for the foreclosure to drop off of the credit report automatically. The credit agencies may keep reporting it after this period of time, but a few letters can have it removed after the time for its reporting has expired. In the meantime, the homeowner who does not wish to use credit any longer will simply have to wait it out. For those who do wish to keep themselves chained to the debt machine, even after foreclosure, the best thing to do may be to focus on building new, better credit records and put some time between themselves and the foreclosure. New lenders will give an old foreclosure less weight than 5 subsequent years of on-time payments, for instance.
The second way is to have the original lender remove the record from the credit report. Obviously, this is much more difficult than waiting nearly a decade, and lenders are not too willing to do this. However, it can be done the same way that consumers clean up their credit reports every day in other circumstances. Just dispute the debt, threaten the bank, sue the bank, sue the credit agencies, file complaints with regulatory agencies, and so on, until they realize that it is just easier to get rid of a crazy person by removing the foreclosure, rather than spend more time and money explaining its existence and accumulating complaints. Playing this role can often be very entertaining and enlightening for those cleaning up their credit reports, because they will experience first-hand how the bureaucrats and banks work together hand-in-hand against the average person.
Another tactic that homeowners may want to consider is emailing every single employee/officer of the bank whose email address they can locate and informing them that the complaints, letters, and negative press will continue until they remove the listing. Some lenders even publish company directories with email addresses of presidents, VPs, and directors. Again, there are no guarantees and this process is not easy, but the lender may eventually give in and remove the foreclosure or account altogether.
But it is completely up to the mortgage company as to what information is reported to the credit agencies. Especially if they have made some mistakes/violations, there is a good reason to start complaining and disputing. And all banks violate rules and laws all day, every day, because there are simply too many laws that contradict each other. It takes literally months for any of the disputes to be resolved, but this is significantly less time to worry about a foreclosure than waiting nearly a decade for it to drop off of the credit history automatically.
Obviously, having a low credit score is entirely irrelevant to the person who relies only on himself to pay his way through life. Maintaining a great score in order to be able to increase limits on credit cards, buy homes with subprime adjustable-rate mortgages, and get a shiny new car every two years purchased with the money of others should not create a strong desire on the part of homeowners who have previously found themselves in the credit trap.
So, on the one hand, many homeowners will simply want to unplug from the system entirely, and live a voluntary life of sustaining themselves through their own efforts and productive work, while living within their means. Living independently without a credit score and credit history to worry about can be extremely fulfilling.
But on the other hand, there is also a privacy concern for many people, who do not want just anyone to be able to pull their credit, see that they have had a foreclosure, and send them unsolicited mail for more low-end credit. Thus, removing the foreclosure and as much negative information as possible may be a worthy goal for homeowners, to sanitize their credit report and move on without its use and without worrying about the past.
There are really only two ways to get a foreclosure off of a credit record. The first is relatively easy but takes a long time, whereas the second is quite difficult but can be result in the immediate removal of foreclosure from a credit report.
The first option every foreclosure victim has is to wait the 7-10 years (depending on all the circumstances, state, etc.) for the foreclosure to drop off of the credit report automatically. The credit agencies may keep reporting it after this period of time, but a few letters can have it removed after the time for its reporting has expired. In the meantime, the homeowner who does not wish to use credit any longer will simply have to wait it out. For those who do wish to keep themselves chained to the debt machine, even after foreclosure, the best thing to do may be to focus on building new, better credit records and put some time between themselves and the foreclosure. New lenders will give an old foreclosure less weight than 5 subsequent years of on-time payments, for instance.
The second way is to have the original lender remove the record from the credit report. Obviously, this is much more difficult than waiting nearly a decade, and lenders are not too willing to do this. However, it can be done the same way that consumers clean up their credit reports every day in other circumstances. Just dispute the debt, threaten the bank, sue the bank, sue the credit agencies, file complaints with regulatory agencies, and so on, until they realize that it is just easier to get rid of a crazy person by removing the foreclosure, rather than spend more time and money explaining its existence and accumulating complaints. Playing this role can often be very entertaining and enlightening for those cleaning up their credit reports, because they will experience first-hand how the bureaucrats and banks work together hand-in-hand against the average person.
Another tactic that homeowners may want to consider is emailing every single employee/officer of the bank whose email address they can locate and informing them that the complaints, letters, and negative press will continue until they remove the listing. Some lenders even publish company directories with email addresses of presidents, VPs, and directors. Again, there are no guarantees and this process is not easy, but the lender may eventually give in and remove the foreclosure or account altogether.
But it is completely up to the mortgage company as to what information is reported to the credit agencies. Especially if they have made some mistakes/violations, there is a good reason to start complaining and disputing. And all banks violate rules and laws all day, every day, because there are simply too many laws that contradict each other. It takes literally months for any of the disputes to be resolved, but this is significantly less time to worry about a foreclosure than waiting nearly a decade for it to drop off of the credit history automatically.
Diet of Financial Abuse - Have you Packed on the Pounds in Investment Defeating Costs of Living
Financial Abuse costs you more than money. The reality is when you abuse your budget you pay with retirement, child care costs, health costs, and other fees too numerous to mention. So what can you do about it?
These suggestions will help you put in place a financial management system that works effectively all the time, every time, to save you money.
Meal Time Planning and Freedom
As a parent you may believe, mistakenly, that if you don't prepare food for your child for every meal, your child will be permanently damaged. Sometimes you need to allow your children to fend for themselves, and prepare exactly what they want to eat. (I'm not talking two year old cooking stew here, I'm talking simple meals anyone can prepare.)
Growing up, my family had Fend for Yourself Night once a week. Everyone prepared something they wanted from a specific selection and had a great meal, filled up their belly, and didn't break the bank. From a selection of ramen noodles, frozen veggies, fresh veggies, fruit, breads, and a few small canned meats and soups, we were allowed to prepare what we wanted. The only rule was it couldn't be fast food, and it had to be somewhat healthy (no candy bar/soda pop dinners). My favorite meal was buttered wheat toast, fruit, and tea. My tummy was happy, mom was content, and I didn't have to work hard. It's still my favorite fast food meal.
How often do you grab McDonalds or Arby's because you're out of time? Is it really faster to drive across town than to pop bread into the toaster. Top toast with peanut butter and add a banana or an apple and you've got a healthy FAST meal, that only cost you pennies. No, you can't do that for every meal, but why abuse the fast food privilege? Why not use that option only for special times, when you really want to spend that money?
The best part of Fend for Yourself Night, it teaches children to prepare simple foods for themselves, a skill they'll need in college, that will keep them healthy and well fed on a limited and very SMALL budget?
I remember my daughter calling home and saying she'd been careless with her money, but she still had food for the last week of the month. I asked what she had, and she told me she still had peanut butter, two cans of tuna, two cans of pineapple, a case of ramen noodles, several cans of veggies and fruit, a can or two of pudding, and a box of tea bags. She had eighty-five cents for a loaf of bread. She restocked her supplies on the next paycheck, and was happy eating at the dorm until she got paid.
These suggestions will help you put in place a financial management system that works effectively all the time, every time, to save you money.
Meal Time Planning and Freedom
As a parent you may believe, mistakenly, that if you don't prepare food for your child for every meal, your child will be permanently damaged. Sometimes you need to allow your children to fend for themselves, and prepare exactly what they want to eat. (I'm not talking two year old cooking stew here, I'm talking simple meals anyone can prepare.)
Growing up, my family had Fend for Yourself Night once a week. Everyone prepared something they wanted from a specific selection and had a great meal, filled up their belly, and didn't break the bank. From a selection of ramen noodles, frozen veggies, fresh veggies, fruit, breads, and a few small canned meats and soups, we were allowed to prepare what we wanted. The only rule was it couldn't be fast food, and it had to be somewhat healthy (no candy bar/soda pop dinners). My favorite meal was buttered wheat toast, fruit, and tea. My tummy was happy, mom was content, and I didn't have to work hard. It's still my favorite fast food meal.
How often do you grab McDonalds or Arby's because you're out of time? Is it really faster to drive across town than to pop bread into the toaster. Top toast with peanut butter and add a banana or an apple and you've got a healthy FAST meal, that only cost you pennies. No, you can't do that for every meal, but why abuse the fast food privilege? Why not use that option only for special times, when you really want to spend that money?
The best part of Fend for Yourself Night, it teaches children to prepare simple foods for themselves, a skill they'll need in college, that will keep them healthy and well fed on a limited and very SMALL budget?
I remember my daughter calling home and saying she'd been careless with her money, but she still had food for the last week of the month. I asked what she had, and she told me she still had peanut butter, two cans of tuna, two cans of pineapple, a case of ramen noodles, several cans of veggies and fruit, a can or two of pudding, and a box of tea bags. She had eighty-five cents for a loaf of bread. She restocked her supplies on the next paycheck, and was happy eating at the dorm until she got paid.
Smart Consumers Save Money with Gas Rebate Credit Cards
Help offset rising gasoline expenses by paying with cards that pay you back each time you fill up the tank.
Prices at the pump continue to skyrocket, leaving most Americans frustrated and stressed by budgets that are strained to the limit. High gas prices shocked consumers and made headlines a couple of years ago, but by now everyone knows that they are here as a permanent reality. The only news worth mentioning nowadays is practical advice on how to survive the rising expense of fueling our cars, trucks, SUVs, recreational vehicles, boats, and other kinds of miscellaneous gas-powered equipment.
But many consumer experts recommend a simple and straightforward solution that offers a direct way to address the problem. Credit cards that offer cash rebates and other benefits are not only safe and convenient for buying gas, but they offer significant savings that go directly back into your wallet, not into your fuel tank. By buying gas and other items with the right card - or the right combination of different cards - you can offset the financial impact of overpriced gasoline without paying added fees, high interest rates, or hidden costs.
The credit markets are in turmoil because of the spillover of problems related to bad mortgage loans, and banks and other lenders who offer credit cards are competing fiercely to get your business as their own profits get pinched. Take advantage of their generous offers while you still have the chance and you can leverage the bleak situation to your own advantage by paying less for gasoline.
For example, dozens of major credit cards now offer a wide range of benefits, cash-back offers, and other incentives for using plastic, including these:
* Apply for some cards and they will give you $50 back after your first purchase.
* Many cards pay 5 percent or more cash back to you for ordinary purchases such as gas, groceries, or prescription medications at the local drug store.
* Some combine these rebates with other perks; such as coupons you can redeem for merchandise or travel upgrades.
* The more you use some cards, the more cash you earn. Use these types of cards often enough to qualify for preferred card user status - which isn't hard if you buy gas on a regular basis - and companies will even throw in other gifts and cash rewards.
* Lots of cards do matching programs; so that for every dollar you spend you get a bonus point. Many offer double rebates, to double your points or cash savings.
* Apply for many of these popular cards and you can get a free signing bonus worth, for instance, as many as 12,000 bonus miles that you can redeem for travel awards with any airline without restrictions on which dates you fly.
* An important feature of the best rebate cards is that they do not charge you any annual fee, unlike most frequent flier or frequent user programs that charge as much as $100 or more just to join and be a member.
With lots of these cards you can also get zero percent financing for up to a full year on all your purchases and credit card balance transfers. So if you have costly credit card debt you can switch it to a rebate card and make money in a matter of minutes. Say, for example, that you owe $3,000 on a credit card that is charging you 18 percent interest. Shift that balance to a zero percent card and you automatically save yourself 18 percent interest, which is approximately $540 or nearly 50 bucks a month.
On top of that instant interest rate savings you will, of course, still be entitled to whatever rebates and benefits the card offers. That kind of consumer strategy is like giving yourself an unexpected payroll raise. Soon the credit card company of your choice will be pitching in to pay for your gas each time you fill up the tank. That is a great way to manage your finances in partnership with those who issue plastic, during these challenging economic times.
Prices at the pump continue to skyrocket, leaving most Americans frustrated and stressed by budgets that are strained to the limit. High gas prices shocked consumers and made headlines a couple of years ago, but by now everyone knows that they are here as a permanent reality. The only news worth mentioning nowadays is practical advice on how to survive the rising expense of fueling our cars, trucks, SUVs, recreational vehicles, boats, and other kinds of miscellaneous gas-powered equipment.
But many consumer experts recommend a simple and straightforward solution that offers a direct way to address the problem. Credit cards that offer cash rebates and other benefits are not only safe and convenient for buying gas, but they offer significant savings that go directly back into your wallet, not into your fuel tank. By buying gas and other items with the right card - or the right combination of different cards - you can offset the financial impact of overpriced gasoline without paying added fees, high interest rates, or hidden costs.
The credit markets are in turmoil because of the spillover of problems related to bad mortgage loans, and banks and other lenders who offer credit cards are competing fiercely to get your business as their own profits get pinched. Take advantage of their generous offers while you still have the chance and you can leverage the bleak situation to your own advantage by paying less for gasoline.
For example, dozens of major credit cards now offer a wide range of benefits, cash-back offers, and other incentives for using plastic, including these:
* Apply for some cards and they will give you $50 back after your first purchase.
* Many cards pay 5 percent or more cash back to you for ordinary purchases such as gas, groceries, or prescription medications at the local drug store.
* Some combine these rebates with other perks; such as coupons you can redeem for merchandise or travel upgrades.
* The more you use some cards, the more cash you earn. Use these types of cards often enough to qualify for preferred card user status - which isn't hard if you buy gas on a regular basis - and companies will even throw in other gifts and cash rewards.
* Lots of cards do matching programs; so that for every dollar you spend you get a bonus point. Many offer double rebates, to double your points or cash savings.
* Apply for many of these popular cards and you can get a free signing bonus worth, for instance, as many as 12,000 bonus miles that you can redeem for travel awards with any airline without restrictions on which dates you fly.
* An important feature of the best rebate cards is that they do not charge you any annual fee, unlike most frequent flier or frequent user programs that charge as much as $100 or more just to join and be a member.
With lots of these cards you can also get zero percent financing for up to a full year on all your purchases and credit card balance transfers. So if you have costly credit card debt you can switch it to a rebate card and make money in a matter of minutes. Say, for example, that you owe $3,000 on a credit card that is charging you 18 percent interest. Shift that balance to a zero percent card and you automatically save yourself 18 percent interest, which is approximately $540 or nearly 50 bucks a month.
On top of that instant interest rate savings you will, of course, still be entitled to whatever rebates and benefits the card offers. That kind of consumer strategy is like giving yourself an unexpected payroll raise. Soon the credit card company of your choice will be pitching in to pay for your gas each time you fill up the tank. That is a great way to manage your finances in partnership with those who issue plastic, during these challenging economic times.
How To Improve Your Finances?
Managing finances is an important way in order to improve the financial affair where one is safe from unnecessary botheration and economical hassles. However, in order to have stable finances, it is very important to take care of one's expenses. Therefore, one has to be extra cautious while handling money right from the early days. If you are a university student, it is the best time to learn the financial management tips so as to avoid financial crisis in life. One of the first financial management tips is to use credit cards in a judicious way. It is important to understand the fact that using credit card not only adds to your credit but requires interests as well. Therefore, use of credit card should be made in emergency situations.
Given the fact that one has to repay the total amount to the creditor, one should take extra care while using the card. This realization will definitely help you in saving your money by saving you from unnecessary expenses. The second tip that should be kept in mind is timely payment of credit card balances. It is important to pay off credit card bills on time as they are the debts. If one is not careful with these bills, they will keep on adding to the credit cared score as well as pile on as a part of debts.
It is important to know the fact that credit bills can create a financial mess in your life. Be careful while handling bills. If you are irregular with your bills and do not care to pay off them on time then you are damaging your credit history. A poor credit history will ruin your chances for loan at an affordable interest rate. Therefore, a clear eyed realization is important while handling the credit bills. Also, it is equally important to develop a healthy habit of saving money. This is a wonderful way of imparting yourself a good habit that will take you a long way while saving you from financial difficulties. If you keep a tab on your unnecessary expenses, you will save your money.
Apart from saving your money, you will be inculcating a good habit. Keep your money in a bank account that helps you in continuing with your savings. However, while going for a saving account, make sure you check the status of an account that does not demands an accounting fee and lays the criteria for minimum balance. While opening an account, make sure you do keep a strict eye on your incomes and expenditures. In case you do not have a fixed and regular source of earnings, it is important to be judicious with one's expenditures. In such conditions, one should save from splurging in excess and try to restrict one's expenses to the basics. Indeed it can be a tough decision yet it will help you in increasing your investments. So, the next time you have extra money, try to use it seriously.
Given the fact that one has to repay the total amount to the creditor, one should take extra care while using the card. This realization will definitely help you in saving your money by saving you from unnecessary expenses. The second tip that should be kept in mind is timely payment of credit card balances. It is important to pay off credit card bills on time as they are the debts. If one is not careful with these bills, they will keep on adding to the credit cared score as well as pile on as a part of debts.
It is important to know the fact that credit bills can create a financial mess in your life. Be careful while handling bills. If you are irregular with your bills and do not care to pay off them on time then you are damaging your credit history. A poor credit history will ruin your chances for loan at an affordable interest rate. Therefore, a clear eyed realization is important while handling the credit bills. Also, it is equally important to develop a healthy habit of saving money. This is a wonderful way of imparting yourself a good habit that will take you a long way while saving you from financial difficulties. If you keep a tab on your unnecessary expenses, you will save your money.
Apart from saving your money, you will be inculcating a good habit. Keep your money in a bank account that helps you in continuing with your savings. However, while going for a saving account, make sure you check the status of an account that does not demands an accounting fee and lays the criteria for minimum balance. While opening an account, make sure you do keep a strict eye on your incomes and expenditures. In case you do not have a fixed and regular source of earnings, it is important to be judicious with one's expenditures. In such conditions, one should save from splurging in excess and try to restrict one's expenses to the basics. Indeed it can be a tough decision yet it will help you in increasing your investments. So, the next time you have extra money, try to use it seriously.
An Unconventional Success Story
This morning my wife got a frantic call from a friend asking if we knew anyone in the medical field who would be willing a write a referral. Asking for more details, my wife listened as our friend told her that her daughter's asthma had been terrible lately and nothing the doctors were doing would help. She was up every night giving her breathing treatments and knew her daughter needed to see a specialist. In contacting her primary physician, she was told her child needed to come in again in order to receive the referral.
Exasperated the mother told the receptionist that there was no need, the doctor was well acquainted with her daughter's health issues and had recently seen her for the same thing. "It's all about money," she cried. "You want me to come in so I can pay, you don't need me to." The receptionist humbly replied that yes, it was all about money, but unfortunately there was nothing she could do about it and was sorry.
So what advice did my wife offer - something unconventional - acupuncture. She got her in touch with a personal friend who is able to treat asthma. Unconventional, yes, bureaucratic, no. Helpful, yes, the most obvious choice, no.
Tradelines are not conventional, nor are they always the most obvious choice, but do they help - absolutely. Unless you were born yesterday, you have learned the shameful fact that everything is about money. You got the loan you did because of money. Your lender made quite a bit off of yours. Perhaps you saved a bundle getting your option ARM, but your resources have run out due to adjusted payments, loss of a job or other personal circumstances. There is no money. Often the answer to our problems are most unconventional.
Ted Stearns, owner of TradeLine Solutions, a San Diego based credit aide company, is not a newcomer to the world of finance. His experience began as an options and futures broker with Currency Trading International about 12 years ago. Since then he has been a financial advisor who hosted a live radio show on AM 1000 KCEO for four years, educating callers and listeners on stocks, bonds and various investments. Over the last five years he has delved into the nationwide mortgage business informing both clients and lenders alike in the arena of purchasing and refinancing.
Exasperated the mother told the receptionist that there was no need, the doctor was well acquainted with her daughter's health issues and had recently seen her for the same thing. "It's all about money," she cried. "You want me to come in so I can pay, you don't need me to." The receptionist humbly replied that yes, it was all about money, but unfortunately there was nothing she could do about it and was sorry.
So what advice did my wife offer - something unconventional - acupuncture. She got her in touch with a personal friend who is able to treat asthma. Unconventional, yes, bureaucratic, no. Helpful, yes, the most obvious choice, no.
Tradelines are not conventional, nor are they always the most obvious choice, but do they help - absolutely. Unless you were born yesterday, you have learned the shameful fact that everything is about money. You got the loan you did because of money. Your lender made quite a bit off of yours. Perhaps you saved a bundle getting your option ARM, but your resources have run out due to adjusted payments, loss of a job or other personal circumstances. There is no money. Often the answer to our problems are most unconventional.
Ted Stearns, owner of TradeLine Solutions, a San Diego based credit aide company, is not a newcomer to the world of finance. His experience began as an options and futures broker with Currency Trading International about 12 years ago. Since then he has been a financial advisor who hosted a live radio show on AM 1000 KCEO for four years, educating callers and listeners on stocks, bonds and various investments. Over the last five years he has delved into the nationwide mortgage business informing both clients and lenders alike in the arena of purchasing and refinancing.
Simple Ways to Prevent Data Loss
Sunday night, tomorrow you have an important presentation to deliver or assignment, then without any warning of any kind your screen freezes, you reboot the system after no response from the keyboard or mouse.
No problem the file will be auto saved, hang, what's this message hard disk drive (HDD) not detected ?! gulp, I'll try a reboot, same error!
This kind of scenario can make any IT battle hardened user fold on the spot, but it need not be this way.
The bad news
All hard drives have finite lives and MTBF (Mean Time Between Failure) as many other products, however HDD will fail when you least expect it or when it hurts most.
Magnetic storage media aka HDD are electro, mechanical devices which operate at the envelope of mechanical tolerances. What do we mean by this? Well modern hard drives spin platters at speeds from 4200 to 15K which are either metal or glass and covered by a process called spluttering a magnetic sensitive material, now the part which decodes and encodes data directly to the platters are part of the head stack assembly, now the tolerance bit, these heads have to repeat ably go to specific locations on the media quickly (less than 10MS), here is where issues can really happen. The heads "fly" above the platters and contrary to popular belief the disk enclosure is not a vacuum, or how could the heads "fly" above the surface?
Now, due to heat, vibration, shock or system malfunction the head stack assembly may place the heads directly on the surface in a inappropriate place and way, thus damaging the surface; you have what most people would call a head crash.
The heat is on
Ok, so heat really can cause issues for your hard drive and here is why. Excessive heat to the media can cause the thermal expansion to the head stack assembly, thus "shifting" the precise alignment. Magnetic properties also change with thermal variations, and finally the PCB (printed circuit board) can enter a thermal runaway scenario; The motor control chip gets warm, the ambient and working temperature of the drive increases, this affects the resistance to failure which is often the main failure type of PCB failure.
No problem the file will be auto saved, hang, what's this message hard disk drive (HDD) not detected ?! gulp, I'll try a reboot, same error!
This kind of scenario can make any IT battle hardened user fold on the spot, but it need not be this way.
The bad news
All hard drives have finite lives and MTBF (Mean Time Between Failure) as many other products, however HDD will fail when you least expect it or when it hurts most.
Magnetic storage media aka HDD are electro, mechanical devices which operate at the envelope of mechanical tolerances. What do we mean by this? Well modern hard drives spin platters at speeds from 4200 to 15K which are either metal or glass and covered by a process called spluttering a magnetic sensitive material, now the part which decodes and encodes data directly to the platters are part of the head stack assembly, now the tolerance bit, these heads have to repeat ably go to specific locations on the media quickly (less than 10MS), here is where issues can really happen. The heads "fly" above the platters and contrary to popular belief the disk enclosure is not a vacuum, or how could the heads "fly" above the surface?
Now, due to heat, vibration, shock or system malfunction the head stack assembly may place the heads directly on the surface in a inappropriate place and way, thus damaging the surface; you have what most people would call a head crash.
The heat is on
Ok, so heat really can cause issues for your hard drive and here is why. Excessive heat to the media can cause the thermal expansion to the head stack assembly, thus "shifting" the precise alignment. Magnetic properties also change with thermal variations, and finally the PCB (printed circuit board) can enter a thermal runaway scenario; The motor control chip gets warm, the ambient and working temperature of the drive increases, this affects the resistance to failure which is often the main failure type of PCB failure.
R&D Companies and Data Loss
R&D Companies and Information Technology (IT)
R&D companies, as the acronym suggests, have to engage in a lot of research. A very high level of research is required to come up with a new invention. Therefore, researchers tend to use a lot of data to test the various outcomes and hypothesis. Due to limitations posed by the traditional way of storing data, R&D companies are increasingly storing their valuable data electronically.
R&D companies in the field of medicine tend to painstakingly undertake several experiments. The results of these experiments have to be recorded, evaluated, and maybe even published. While computers can help the researchers to record their findings, Internet can allow the researchers to publish their results with minimal effort.
Since the laptops offer the required mobility while performing research and analysis, most of the researchers in the defence, agriculture, pharmaceutical, defence, aerospace, and biotechnology industries tend to use laptops. Therefore, most of these companies tend to have a dedicated IT department. If the data is mobile, as is the case with laptops, the chances of losing the data are also higher.
If R&D companies are exchanging the research data across the Internet, they also need to be sure that the server is secure because any malicious user can easily misuse the data. More often than not, the data related with R&D is extremely confidential. Therefore, most companies tend to use the latest IT to help them keep their data secure.
Why is R&D Data Important and Valuable?
R&D is a field that requires large amount of investment because of the sheer nature of the industry. In addition, it is not a field that reaps immediate results. Research can take months or years before an appropriate product, equipment, or idea can be developed. Therefore, while the investment is huge, the results may not be apparent. Any data loss or leakage can ruin the entire capital and infrastructure investment.
Companies invest in R&D to stay ahead in the market competition whereas governments invest in R&D to ensure that the country is ahead in technological advancements or for national security. While most companies have to be extremely cautious about their R&D data so as to avoid data or idea leakage lest the competitor steal the idea, the government has to protect the R&D data to ensure that there is no threat to national security.
Protecting the Valuable R&D data
It is imperative to protect the R&D data because of the nature of the data. Most companies create centralised reporting systems so that data can be gathered comprehensively in one place. This minimises the chances of losing your data because the flow of data is restricted.
Some R&D companies do not wish to risk exchanging their data on public networks. Having personalised servers that allow you to exchange data within company in the most secure manner is a very good idea. You can always test the security of these measures and upgrade the security when the need arises.
Data encryption is the most important measure that R&D companies should make use of. Data encryption allows your valuable data to be encrypted before it leaves the secure premises of your office via a network server. Only authorised users with the requisite passwords can gain access to this data. Encrypting the data is the best way to minimise your risk against hackers, data theft, and malicious users.
R&D data is not the kind of data that can be created again once its lost. Therefore, the R&D companies will have to ensure that their valuable data is always backed up appropriately. Using manual backups may not be a good idea because it leaves room for error. Your best bet would be to either use Continuous Data Protection (CDP) or Automated Remote Backups.
CDP technique mirrors the data on two disks. Therefore, even if something happens to one disk, the other disk remains protected. Automated remote backups ensure that your data is automatically backed up and stored in a location that is geographically distant from the primary office site. This ensures that the data remains protected even if a natural or man-made disaster such as terrorist attack occurs at the primary office site.
What to do in the Event of Data Loss?
If all your data protection measures fail, you will need to hire the services of a professional data recovery company. Since the nature of the lost data may be confidential, it would be best if you sign a confidentiality agreement with the company. In addition, make sure that you hire the services of the best company because the cost of recreating your lost data can be much higher than the cost of recovering your data.
R&D companies, as the acronym suggests, have to engage in a lot of research. A very high level of research is required to come up with a new invention. Therefore, researchers tend to use a lot of data to test the various outcomes and hypothesis. Due to limitations posed by the traditional way of storing data, R&D companies are increasingly storing their valuable data electronically.
R&D companies in the field of medicine tend to painstakingly undertake several experiments. The results of these experiments have to be recorded, evaluated, and maybe even published. While computers can help the researchers to record their findings, Internet can allow the researchers to publish their results with minimal effort.
Since the laptops offer the required mobility while performing research and analysis, most of the researchers in the defence, agriculture, pharmaceutical, defence, aerospace, and biotechnology industries tend to use laptops. Therefore, most of these companies tend to have a dedicated IT department. If the data is mobile, as is the case with laptops, the chances of losing the data are also higher.
If R&D companies are exchanging the research data across the Internet, they also need to be sure that the server is secure because any malicious user can easily misuse the data. More often than not, the data related with R&D is extremely confidential. Therefore, most companies tend to use the latest IT to help them keep their data secure.
Why is R&D Data Important and Valuable?
R&D is a field that requires large amount of investment because of the sheer nature of the industry. In addition, it is not a field that reaps immediate results. Research can take months or years before an appropriate product, equipment, or idea can be developed. Therefore, while the investment is huge, the results may not be apparent. Any data loss or leakage can ruin the entire capital and infrastructure investment.
Companies invest in R&D to stay ahead in the market competition whereas governments invest in R&D to ensure that the country is ahead in technological advancements or for national security. While most companies have to be extremely cautious about their R&D data so as to avoid data or idea leakage lest the competitor steal the idea, the government has to protect the R&D data to ensure that there is no threat to national security.
Protecting the Valuable R&D data
It is imperative to protect the R&D data because of the nature of the data. Most companies create centralised reporting systems so that data can be gathered comprehensively in one place. This minimises the chances of losing your data because the flow of data is restricted.
Some R&D companies do not wish to risk exchanging their data on public networks. Having personalised servers that allow you to exchange data within company in the most secure manner is a very good idea. You can always test the security of these measures and upgrade the security when the need arises.
Data encryption is the most important measure that R&D companies should make use of. Data encryption allows your valuable data to be encrypted before it leaves the secure premises of your office via a network server. Only authorised users with the requisite passwords can gain access to this data. Encrypting the data is the best way to minimise your risk against hackers, data theft, and malicious users.
R&D data is not the kind of data that can be created again once its lost. Therefore, the R&D companies will have to ensure that their valuable data is always backed up appropriately. Using manual backups may not be a good idea because it leaves room for error. Your best bet would be to either use Continuous Data Protection (CDP) or Automated Remote Backups.
CDP technique mirrors the data on two disks. Therefore, even if something happens to one disk, the other disk remains protected. Automated remote backups ensure that your data is automatically backed up and stored in a location that is geographically distant from the primary office site. This ensures that the data remains protected even if a natural or man-made disaster such as terrorist attack occurs at the primary office site.
What to do in the Event of Data Loss?
If all your data protection measures fail, you will need to hire the services of a professional data recovery company. Since the nature of the lost data may be confidential, it would be best if you sign a confidentiality agreement with the company. In addition, make sure that you hire the services of the best company because the cost of recreating your lost data can be much higher than the cost of recovering your data.
Top 10 Excuses For Not Saving
With the current writer's strike, there must be a few others out there hungry for a new Top 10 list. So, from the home office in Portsmouth, New Hampshire, here are the:
(followed by the reasons these excuses are lame)
1. I'll save more later (when I make much more money).
2. But I really do need this.
3. Life is too short.
4. What's another $X?
5. But I don't want to be cheap!
6. My friends don't save.
7. Mom and Dad help with all that.
8. I wouldn't have any idea what to do with any money I saved.
9. I have so much debt!
10. My husband/wife/partner/accountant/financial planner/mailman/crazy roommate/barista/dog is in charge of my household finances.
And now the matching top 10 reason those excuses are lame:
1. Did you remember saying that two promotions ago?
2. When was the last time you used it? Okay, how about where you put it? Do you even own it anymore? Do you remember what it was?
3. Then your retirement may be too long.
4. Depends on how long it takes to pay it back. Could be many times $X.
5. Me neither. Instead, be fiscally responsible.
6. Do you really need me to respond to this? Didn't you have a parent say to you 1,000 times growing up "If all your friends jumped off the bridge, would you?"
7. Good for you. Count your blessings. When you're done, hit 'em up for something else, like a financial education.
8. That's what we call a good problem. When it comes to investing, remember: how you invest matters far less than how much you save.
9. Then you already know that you need to pay it off. The only way to do so? Spending less than you make. Doesn't that kind of sound like saving?
10. You can outsource love/tax prep/technical expertise/postal delivery/loud music/a mean espresso/love. But you can never delegate financial responsibility.
(followed by the reasons these excuses are lame)
1. I'll save more later (when I make much more money).
2. But I really do need this.
3. Life is too short.
4. What's another $X?
5. But I don't want to be cheap!
6. My friends don't save.
7. Mom and Dad help with all that.
8. I wouldn't have any idea what to do with any money I saved.
9. I have so much debt!
10. My husband/wife/partner/accountant/financial planner/mailman/crazy roommate/barista/dog is in charge of my household finances.
And now the matching top 10 reason those excuses are lame:
1. Did you remember saying that two promotions ago?
2. When was the last time you used it? Okay, how about where you put it? Do you even own it anymore? Do you remember what it was?
3. Then your retirement may be too long.
4. Depends on how long it takes to pay it back. Could be many times $X.
5. Me neither. Instead, be fiscally responsible.
6. Do you really need me to respond to this? Didn't you have a parent say to you 1,000 times growing up "If all your friends jumped off the bridge, would you?"
7. Good for you. Count your blessings. When you're done, hit 'em up for something else, like a financial education.
8. That's what we call a good problem. When it comes to investing, remember: how you invest matters far less than how much you save.
9. Then you already know that you need to pay it off. The only way to do so? Spending less than you make. Doesn't that kind of sound like saving?
10. You can outsource love/tax prep/technical expertise/postal delivery/loud music/a mean espresso/love. But you can never delegate financial responsibility.
Creat a Working Budget for You
A budget is the key to getting yourself back on track financially. If you follow the steps I am outlining for you then you should be able to create a budget that is designed for you.
The first thing that you need to do is agree to write down everything you spend for the next month. This mean everything even a soda from 7-eleven. Every time you spend money on anything you need to write it down.
I suggest that you do this either on the computer using word or excel, or in a note book. The first thing to do to get yourself organized by creating spending categories. I am going to list out categories for you in just a moment but before I do that I want to stress that you write everything down and this is why.
In order to truly understand what you spend your money on and what things you are willing to curb and what things are essential to your lifestyle it is important to first see where all the money goes. You may know what you spend your money on but I guarantee after a month of writing it all down you will see you spend more than you should.
Okay here are the categories for spending. You may have others or not even use some but this is the list I have used personally and with my clients when I worked as credit counselor.
Mortgage,,
Condo/association fees,
2nd mortgage,
Equity loan,
Car payments,
Student loan,
IRS payments,
Personal loan,
Other loans,
Credit card payments (list each separately),
Groceries,
Eating out (this includes 7-eleven and such),,
Tuition,
Daycare,
Medical/dental expenses,
Health and beauty (manicures. pedicures, haircuts, ex....),
Heat/oil,
Electric,
Cable,
Satellite,
Phone,
Internet,
Cell phone,
Water/sewer,
Clubs/organizations (usually monthly dues),
Gym,
Entertainment,
Holidays (estimate yearly and divide by 12),
Birthdays (estimate yearly and divide by 12),
Gas for vehicles,
Tolls / easy pass,
Newspapers / magazines (add total and divide by 12),
School expenses (sports, lunches),
Clothing
Some of these categories might be an expense only a few times a year. The reason I include them is that I want you to get in the habit if living within your means. This may take time and practice like anything else you need to learn how to spend money, but it will come with time and patience.
Take the time to write down everything you spend for the next 30 days. I suggest that you begin with the first of the month and then go from there.
Once you have 30 days worth of data you can begin to look at it and see where the money is being spent. You will need to look at the list and decide where you are going to trim the spending. Perhaps you eat out too often or spend too much money at the mall.
Start with expenses that you cannot control such as the fixed ones like the car and mortgage or rent. Then move to the ones you have some control over such as food and entertainment. There may even be some categories you need to eliminate such as eating out.
The first thing that you need to do is agree to write down everything you spend for the next month. This mean everything even a soda from 7-eleven. Every time you spend money on anything you need to write it down.
I suggest that you do this either on the computer using word or excel, or in a note book. The first thing to do to get yourself organized by creating spending categories. I am going to list out categories for you in just a moment but before I do that I want to stress that you write everything down and this is why.
In order to truly understand what you spend your money on and what things you are willing to curb and what things are essential to your lifestyle it is important to first see where all the money goes. You may know what you spend your money on but I guarantee after a month of writing it all down you will see you spend more than you should.
Okay here are the categories for spending. You may have others or not even use some but this is the list I have used personally and with my clients when I worked as credit counselor.
Mortgage,,
Condo/association fees,
2nd mortgage,
Equity loan,
Car payments,
Student loan,
IRS payments,
Personal loan,
Other loans,
Credit card payments (list each separately),
Groceries,
Eating out (this includes 7-eleven and such),,
Tuition,
Daycare,
Medical/dental expenses,
Health and beauty (manicures. pedicures, haircuts, ex....),
Heat/oil,
Electric,
Cable,
Satellite,
Phone,
Internet,
Cell phone,
Water/sewer,
Clubs/organizations (usually monthly dues),
Gym,
Entertainment,
Holidays (estimate yearly and divide by 12),
Birthdays (estimate yearly and divide by 12),
Gas for vehicles,
Tolls / easy pass,
Newspapers / magazines (add total and divide by 12),
School expenses (sports, lunches),
Clothing
Some of these categories might be an expense only a few times a year. The reason I include them is that I want you to get in the habit if living within your means. This may take time and practice like anything else you need to learn how to spend money, but it will come with time and patience.
Take the time to write down everything you spend for the next 30 days. I suggest that you begin with the first of the month and then go from there.
Once you have 30 days worth of data you can begin to look at it and see where the money is being spent. You will need to look at the list and decide where you are going to trim the spending. Perhaps you eat out too often or spend too much money at the mall.
Start with expenses that you cannot control such as the fixed ones like the car and mortgage or rent. Then move to the ones you have some control over such as food and entertainment. There may even be some categories you need to eliminate such as eating out.
Are You Frugal or Cheap?
A lot of families are facing tighter budgets right now. It's not just rising gas prices. It's mortgages they didn't realize they could afford. It's jobs lost to downsizing. It's a tough economy in many places right now.
Times like these make living a more frugal lifestyle not only more appealing, but more necessary for many families.
Frugality is not just about being cheap. In fact, being cheap is one of the traps of trying to be frugal. Choosing things that really aren't of a reasonable quality can quickly derail your frugal efforts to spend less.
Sometimes the situation is urgent enough that it makes sense to buy flat out cheap. If money's tight and that's the only way you're going to get what you need, what other options are there, really? But when you can afford to spend the extra to buy something that will last, and that's reasonable to your need, it makes a lot of sense to do so.
You should also figure out what you're paying for that you aren't making enough use of. Long distance phone plans, for example. You may have one and not be making enough use out of it, or you can find one that better suits your needs. Go through your phone records to figure out how much you really need. Don't under buy, but don't get the biggest plan just because it has the most minutes.
Being organized can also help you to be frugal.
For example, running as many errands as possible on one day can help you to save money on gas. If you do as I do, and try to have that day be on the day you know you can get your best discounts on shopping, you'll save even more money. My local grocery store has double flyers on Wednesdays, so there are more specials to choose from.
Keeping your home organized means that you will have a better idea as to what you really need to buy when you shop. It can also help to keep things around the house in better condition. And of course being organized can save you tons of time in just looking for something that isn't where it belongs.
Buying clothing is a great area to remember to be frugal rather than cheap.
Which is better? A $10 shirt from Walmart or one bought from a thrift store? If you're good at shopping, you can get some amazingly inexpensive clothes from thrift stores that look like new and are higher quality than you would get buying "cheap" elsewhere. You may even pay less. It's just a matter of finding the right thrift stores for your area. Some carry amazing merchandise at great prices. Others have those gems more rarely.
Times like these make living a more frugal lifestyle not only more appealing, but more necessary for many families.
Frugality is not just about being cheap. In fact, being cheap is one of the traps of trying to be frugal. Choosing things that really aren't of a reasonable quality can quickly derail your frugal efforts to spend less.
Sometimes the situation is urgent enough that it makes sense to buy flat out cheap. If money's tight and that's the only way you're going to get what you need, what other options are there, really? But when you can afford to spend the extra to buy something that will last, and that's reasonable to your need, it makes a lot of sense to do so.
You should also figure out what you're paying for that you aren't making enough use of. Long distance phone plans, for example. You may have one and not be making enough use out of it, or you can find one that better suits your needs. Go through your phone records to figure out how much you really need. Don't under buy, but don't get the biggest plan just because it has the most minutes.
Being organized can also help you to be frugal.
For example, running as many errands as possible on one day can help you to save money on gas. If you do as I do, and try to have that day be on the day you know you can get your best discounts on shopping, you'll save even more money. My local grocery store has double flyers on Wednesdays, so there are more specials to choose from.
Keeping your home organized means that you will have a better idea as to what you really need to buy when you shop. It can also help to keep things around the house in better condition. And of course being organized can save you tons of time in just looking for something that isn't where it belongs.
Buying clothing is a great area to remember to be frugal rather than cheap.
Which is better? A $10 shirt from Walmart or one bought from a thrift store? If you're good at shopping, you can get some amazingly inexpensive clothes from thrift stores that look like new and are higher quality than you would get buying "cheap" elsewhere. You may even pay less. It's just a matter of finding the right thrift stores for your area. Some carry amazing merchandise at great prices. Others have those gems more rarely.
Have Your Early Retirement
Are you planning to work for another 30 years in order to have your own retirement? 95% of people are using the 30 years plan in order to have their retirement.
Many people believe that this is normal and this is the only way to have your retirement. They strictly follow this formula, study hard, get a good result, join big companies, work hard for 30 years and enjoy their life with their retirement fund.
I am not saying that this is not true and giving any comment for this retirement formula. What I want to highlight here is in fact, you have many choices in getting your retirement.
Imagine, you work hard and smart for 5 years and the result from your hard and smart work is, you will be paid each month for life regardless whether you're working or not! Just work for another 5 years and you will be totally financially free and get your early retirement without working hard for 30 years!
It's true! In fact, almost everyone who has a burning desire to have their early retirement can easily achieve the goal of financial freedom within 5 years.
This is not impossible mission. Internet is the tool which will help you to get your early retirement in next 5 years. Internet not only shorten the distance of communication around the world but also shorten the gap of rich and poor.
If you have no money to start a business, you can consider to start your business online. You don't need to have your own product or service, by just become a reseller or affiliate, you can start your internet business immediately with some little money (normally less than $100)
Some affiliate programs even offer you a free affiliate sign up. In other words, you don't have to pay any single cent to get a reseller licence, and they even offer you an automated marketing system to auto-pilot your internet business. Now, you can even earn money 24 hours even you sleep! No kidding!
Currently, I'm personally using a system to fully automate my marketing process. This system is easy and simple for everyone to use. The best is, with this system you can easily earn a residual income each month which will help you to have your early retirement.
Of course, this is not the only way to your early retirement. There are over thousands of programs online which show you how to make money, earn residual income from their programs. Be aware of some scam programs, especially those programs promise to earn you 1,000% of return in one year!
Many people believe that this is normal and this is the only way to have your retirement. They strictly follow this formula, study hard, get a good result, join big companies, work hard for 30 years and enjoy their life with their retirement fund.
I am not saying that this is not true and giving any comment for this retirement formula. What I want to highlight here is in fact, you have many choices in getting your retirement.
Imagine, you work hard and smart for 5 years and the result from your hard and smart work is, you will be paid each month for life regardless whether you're working or not! Just work for another 5 years and you will be totally financially free and get your early retirement without working hard for 30 years!
It's true! In fact, almost everyone who has a burning desire to have their early retirement can easily achieve the goal of financial freedom within 5 years.
This is not impossible mission. Internet is the tool which will help you to get your early retirement in next 5 years. Internet not only shorten the distance of communication around the world but also shorten the gap of rich and poor.
If you have no money to start a business, you can consider to start your business online. You don't need to have your own product or service, by just become a reseller or affiliate, you can start your internet business immediately with some little money (normally less than $100)
Some affiliate programs even offer you a free affiliate sign up. In other words, you don't have to pay any single cent to get a reseller licence, and they even offer you an automated marketing system to auto-pilot your internet business. Now, you can even earn money 24 hours even you sleep! No kidding!
Currently, I'm personally using a system to fully automate my marketing process. This system is easy and simple for everyone to use. The best is, with this system you can easily earn a residual income each month which will help you to have your early retirement.
Of course, this is not the only way to your early retirement. There are over thousands of programs online which show you how to make money, earn residual income from their programs. Be aware of some scam programs, especially those programs promise to earn you 1,000% of return in one year!
Judgments-Liens-and Other Legal Issues
In the field of debt collection and delinquencies, judgments and judgment risk factors are a very real concerns. Will a creditor sue and seek legal judgment against me? If he does, what type judgment might it be? What exactly is a judgment and what can I do about it? These are just some of the questions answered in this judgment article. But please note. The content of this article is for consumer knowledge of judgments and legal lawsuits only and it is assume the reader will act responsibly towards his/her debt.
RISK FACTORS
Collectors must abide by the their state's Statute of Limitations (SOL) for the amount of time to sue a debtor for payments. Therefore a consumer's first step is determine if the SOL for collecting a debt has past. If the SOL has not passed, the consumer must weigh the risk factor of a judgment against them when determining if they should pay a delinquent debt. A judgment could allow the creditor to garnish wages or hire an authority to come get your property. However, it is possible it may not be in the creditor's best interest to do so. Sometimes it is simply too much time and expense for a creditor to take action against you. But the possibility does exist.
As stated at Credit Info Center: "The risks of judgments, garnishments, and property seizures must be properly balanced against the likelihood that such drastic collection measures will ever happen. The risk, and the decision to take that risk, are entirely yours if you're in such a position."
DEFINITIONS
JUDGMENT - a decision issued by a court at the end of a lawsuit. If in the favor of the creditor it not only verifies the debt but can increase the debt by adding interest, court costs, collection fees, and attorney fees an may extend up to 20 years on a credit file. A decision in favor of the debtor makes the debt uncollectible and may include reimbursement of legal costs to the debtor.
JUDGMENT PROOF - a debtor has little or no property that a creditor can legally take to collect in the foreseeable future.
PRE-JUDGMENT ATTACHMENT - a legal procedure which lets an unsecured creditor tie up property before obtaining a court judgment.
DEFAULT JUDGMENT - If a consumer is sued and does not file papers in response to the lawsuit in the prescribed time limit, the plaintiff can ask the court to enter a judgment against the debtor and is an automatic loss of the case. A default judgement can be set aside but this is unusual and circumstances must be notable to justify such a turn.
LIEN - a lien is a notice that a creditor has attached property. The consumer cannot sell the property without paying off the creditor because the lien makes the "title" cloudy.
SECURED DEBT Property that is purchased using the property itself as collateral on the loan is considered secured. Credit cards are considered unsecured but tax debt is considered secured.
What can a creditor do?
Creditors from secured debts may be able to obtain a judgement for repossessions. Mortgagors can depose and landlords can evict. Garnishment or taking of wages is an option of any creditor. The decision to sue a debtor is usually based on the amount owed (usually over $500), the cost of getting it back, and whether there is a reasonable expectation that something can be collected.
If the matter can be sorted out with the person making the claim before it goes to court, it will be cheaper. If you lose in court, you risk having to pay the other side's costs. Even if you agree that you owe the money but don't agree on the amount, you can try to negotiate the matter before it goes to court. If you reach an agreement, you will need to submit an agreement as to judgement form in the court, which tells the court that there is no need to have the matter heard.
Some judgments can be fought by challenging their validity. For example default judgments at times can be reversed by claiming the debtor was never served or was ignorant of the facts. Before reversal, however, you must back up the claim with facts. Judgments which include selected stipulations can be reversed if the debtor can prove coercion or misrepresentation. Of course winning an appeal in a higher court can reverse a decision as well.
Payment of Judgments
Once a judgement has been issued, settlement may still be an option if the debtor and creditor can come to terms. This is often the case when dealing with a temporary judgement-proof debtor who will have assets freeing in the future. The creditor might want the debt cleared sooner and might be willing to settle.
Contrary to popular belief, a judgement can be removed from a credit file by the creditor. This requires a fair amount of work and therefore the creditor would have to be motivated to do so in some way.
RISK FACTORS
Collectors must abide by the their state's Statute of Limitations (SOL) for the amount of time to sue a debtor for payments. Therefore a consumer's first step is determine if the SOL for collecting a debt has past. If the SOL has not passed, the consumer must weigh the risk factor of a judgment against them when determining if they should pay a delinquent debt. A judgment could allow the creditor to garnish wages or hire an authority to come get your property. However, it is possible it may not be in the creditor's best interest to do so. Sometimes it is simply too much time and expense for a creditor to take action against you. But the possibility does exist.
As stated at Credit Info Center: "The risks of judgments, garnishments, and property seizures must be properly balanced against the likelihood that such drastic collection measures will ever happen. The risk, and the decision to take that risk, are entirely yours if you're in such a position."
DEFINITIONS
JUDGMENT - a decision issued by a court at the end of a lawsuit. If in the favor of the creditor it not only verifies the debt but can increase the debt by adding interest, court costs, collection fees, and attorney fees an may extend up to 20 years on a credit file. A decision in favor of the debtor makes the debt uncollectible and may include reimbursement of legal costs to the debtor.
JUDGMENT PROOF - a debtor has little or no property that a creditor can legally take to collect in the foreseeable future.
PRE-JUDGMENT ATTACHMENT - a legal procedure which lets an unsecured creditor tie up property before obtaining a court judgment.
DEFAULT JUDGMENT - If a consumer is sued and does not file papers in response to the lawsuit in the prescribed time limit, the plaintiff can ask the court to enter a judgment against the debtor and is an automatic loss of the case. A default judgement can be set aside but this is unusual and circumstances must be notable to justify such a turn.
LIEN - a lien is a notice that a creditor has attached property. The consumer cannot sell the property without paying off the creditor because the lien makes the "title" cloudy.
SECURED DEBT Property that is purchased using the property itself as collateral on the loan is considered secured. Credit cards are considered unsecured but tax debt is considered secured.
What can a creditor do?
Creditors from secured debts may be able to obtain a judgement for repossessions. Mortgagors can depose and landlords can evict. Garnishment or taking of wages is an option of any creditor. The decision to sue a debtor is usually based on the amount owed (usually over $500), the cost of getting it back, and whether there is a reasonable expectation that something can be collected.
If the matter can be sorted out with the person making the claim before it goes to court, it will be cheaper. If you lose in court, you risk having to pay the other side's costs. Even if you agree that you owe the money but don't agree on the amount, you can try to negotiate the matter before it goes to court. If you reach an agreement, you will need to submit an agreement as to judgement form in the court, which tells the court that there is no need to have the matter heard.
Some judgments can be fought by challenging their validity. For example default judgments at times can be reversed by claiming the debtor was never served or was ignorant of the facts. Before reversal, however, you must back up the claim with facts. Judgments which include selected stipulations can be reversed if the debtor can prove coercion or misrepresentation. Of course winning an appeal in a higher court can reverse a decision as well.
Payment of Judgments
Once a judgement has been issued, settlement may still be an option if the debtor and creditor can come to terms. This is often the case when dealing with a temporary judgement-proof debtor who will have assets freeing in the future. The creditor might want the debt cleared sooner and might be willing to settle.
Contrary to popular belief, a judgement can be removed from a credit file by the creditor. This requires a fair amount of work and therefore the creditor would have to be motivated to do so in some way.
Money - Financial Vagueness
Financial vagueness what is that is it a new kind of food you eat?
When you are vague about our finances, you push away the things that can improve them.
Excessive debt
One of the ways financial vagueness is showing up each day for you is in the debt that you are carrying.
Staying in debt hurts you and not the banks.
The banks are happy to collect a very high interest and if you cannot pay they can take away part of your salary.
Of course this will affect your credit rating which will make it difficult to obtain credit in the future. Some will go as far as declaring bankruptcy.
Resistance
Resistance to change is one of the many (big) difficulties that many people have in getting out of financial vagueness.
Unpleasant emotions
When you start looking at your financial debts you may bring to the surface unpleasant buried emotions. Most people will say that they did not know that these emotions were even there.
You may fear being embarrassed in front of others like family, friends, colleagues or the neighbours.
Poor money decisions
It is not always easy to accept and move on once you realize that you have made a poor money decision.
It is not healthy for your future to blame yourself or love ones because you were afraid to say stop.
Not having a solid love relationship where decisions to buying big items are not discussed can result in lots of arguing.
Financial awareness
Financial awareness starts with the willingness to break out of the cycle of financial vagueness.
Becoming financial aware is taking responsibility for how you have been treating yourself.
Choosing to become an adult and start putting aside 10% then 15% of your earnings can rebuild your sense of security.
Getting passed the discomfort
You can get control of financial vagueness when you start to get passed the discomfort and taking the time to look at all your bills.
Small steps
If you were to go to the gym and started working out, your trainer would suggest starting slowly. This is the same with finances. Start reading articles in financial journals even though you may not understand the terms used.
Conclusion: Breaking out of financial vagueness starts with a willingness to change and accepting to create a new identity.
When you are vague about our finances, you push away the things that can improve them.
Excessive debt
One of the ways financial vagueness is showing up each day for you is in the debt that you are carrying.
Staying in debt hurts you and not the banks.
The banks are happy to collect a very high interest and if you cannot pay they can take away part of your salary.
Of course this will affect your credit rating which will make it difficult to obtain credit in the future. Some will go as far as declaring bankruptcy.
Resistance
Resistance to change is one of the many (big) difficulties that many people have in getting out of financial vagueness.
Unpleasant emotions
When you start looking at your financial debts you may bring to the surface unpleasant buried emotions. Most people will say that they did not know that these emotions were even there.
You may fear being embarrassed in front of others like family, friends, colleagues or the neighbours.
Poor money decisions
It is not always easy to accept and move on once you realize that you have made a poor money decision.
It is not healthy for your future to blame yourself or love ones because you were afraid to say stop.
Not having a solid love relationship where decisions to buying big items are not discussed can result in lots of arguing.
Financial awareness
Financial awareness starts with the willingness to break out of the cycle of financial vagueness.
Becoming financial aware is taking responsibility for how you have been treating yourself.
Choosing to become an adult and start putting aside 10% then 15% of your earnings can rebuild your sense of security.
Getting passed the discomfort
You can get control of financial vagueness when you start to get passed the discomfort and taking the time to look at all your bills.
Small steps
If you were to go to the gym and started working out, your trainer would suggest starting slowly. This is the same with finances. Start reading articles in financial journals even though you may not understand the terms used.
Conclusion: Breaking out of financial vagueness starts with a willingness to change and accepting to create a new identity.
Reasons to Keep Your Personal Finance Separate from Your Business
One of the least understood of small business principles is how to keep your personal finances separate from the business's financial figures. Keeping them separate is not about strict requirements but more about maintaining an attainable comfort level. It isn't your comfort either you need should be concerned with. It's the comfort level of the auditors at the IRS you should be most concerned with cause they love nothing more than clear business records.
It's as simple as this type of thinking: If your records are clean, your audit will be easy. Separate business and personal accounts keeps the IRS carefully focused on the tax audit they were assigned to do. When you have business and personal funds in one account, those same business records are now suddenly right out in the open before an auditor who may discover problems quite to what they were looking for. Here are some ways you can keep them separate:
* Your business is a hobby - There are several federal and state government policies that stipulate only businesses are allowed to deduct business expenses. Now let's say your business is more of a hobby and not a means to make considerable money. You may have a difficult time telling the government that you are indeed running a business and not a side hobby. Many business owners compound this problem by using a personal bank account too.
* Tax season is a nightmare - Your accountant might hate you more for this reason because it causes quite the mess. If you are a small business owner it is important that you keep your personal finances separate from the business. This includes all types of transactions. The reason why your accountant will really dislike you is because by not separating them, you creating an awful lot of work for him to figure everything out.
* Limited audit paper trail - While it is recommended that you keep all your business and personal finance accounts separate, that doesn't mean you need to keep all your records and paperwork separate. You still should, however. Everything you have on file needs to be accurate, complete, permanent and showing a clear record of income and deductions. The last thing you want is a jumbled mess that causes nothing but IRS problems for you. Keeping separate business statements and records from your personal account establishes a clear audit trail.
* Lack of professional attitudes - The only way people will take your business seriously is if you do too. Accept checks made out to the business and not your own personal name. This establishes a divide between you and your business.
* Forgotten deductions - Don't even get me started with the disaster which will be your account statement. Doing all of your small business banking on your personal account becomes a mish mash of different transactions. You then need to spend time decipher which goes to what account. You run the risk of miss deductions you are entitled to. This kind of record keeping will cost you more in time, money, and missed deductions.
It's as simple as this type of thinking: If your records are clean, your audit will be easy. Separate business and personal accounts keeps the IRS carefully focused on the tax audit they were assigned to do. When you have business and personal funds in one account, those same business records are now suddenly right out in the open before an auditor who may discover problems quite to what they were looking for. Here are some ways you can keep them separate:
* Your business is a hobby - There are several federal and state government policies that stipulate only businesses are allowed to deduct business expenses. Now let's say your business is more of a hobby and not a means to make considerable money. You may have a difficult time telling the government that you are indeed running a business and not a side hobby. Many business owners compound this problem by using a personal bank account too.
* Tax season is a nightmare - Your accountant might hate you more for this reason because it causes quite the mess. If you are a small business owner it is important that you keep your personal finances separate from the business. This includes all types of transactions. The reason why your accountant will really dislike you is because by not separating them, you creating an awful lot of work for him to figure everything out.
* Limited audit paper trail - While it is recommended that you keep all your business and personal finance accounts separate, that doesn't mean you need to keep all your records and paperwork separate. You still should, however. Everything you have on file needs to be accurate, complete, permanent and showing a clear record of income and deductions. The last thing you want is a jumbled mess that causes nothing but IRS problems for you. Keeping separate business statements and records from your personal account establishes a clear audit trail.
* Lack of professional attitudes - The only way people will take your business seriously is if you do too. Accept checks made out to the business and not your own personal name. This establishes a divide between you and your business.
* Forgotten deductions - Don't even get me started with the disaster which will be your account statement. Doing all of your small business banking on your personal account becomes a mish mash of different transactions. You then need to spend time decipher which goes to what account. You run the risk of miss deductions you are entitled to. This kind of record keeping will cost you more in time, money, and missed deductions.
How To Make Exponential Financial Progress By Focusing On Simple Things
There's a guy I know who is always banging his head against the same wall... ouch!
He just doesn't get it. Each month he reads a new financial book or attends a new "get out of debt" seminar, but his results are always the same -- zilch.
This has been going on for years and his debt continues to grow, along with personal and family frustrations.
Do you know someone like that? Are you like that?
The way he's going now, a month of one-on-one with Dave Ramsey wouldn't help.
I used to be on a similar path. But then everything started to change -- for the better.
I started to do exactly the opposite of my friend and my debt started to go down and my peace started to go up.
Here's what I did and here's the advice I'd give you. There's a way to get out of debt and grow financial peace exponentially.
And this way always works.
When you apply this advice, your relationship with God and those closest to you will get better, your earnings will grow, your debts will diminish, and your lifestyle will improve.
Your life will quickly transform when YOU start to apply this principle.
Here it is.
WHEN YOU BUILD YOURSELF CONSISTENTLY, MONEY FREEDOM WILL GROW EXPONENTIALLY.
Remember this: every level of income DEMANDS a different you. Every step along the path to Debt Fr.ee Living God's Way REQUIRES a different you. You can't get to where you want to be by staying where you are.
It's really simple. The fastest way to get out of debt and begin to enjoy Debt Free Living God's Way is to learn and APPLY faster. Ask yourself this: What is one financial habit I can start improving RIGHT NOW?
Start small. Take one step at a time.
Write this "one way" on a note and put it on your refrigerator.. What will you write? What is the one small step you can take today?
Honestly, you don't need anyone to give you any suggestions. You already know what it is. You just haven't decided to do it. Maybe you've tried. But you've never done it.
By the way, I hate it when someone says they're going to "try" to change a financial habit. Why? Let me show you.
Look at the desk in front of you. Fix your eyes on something you are able to pick up.
Ready? Now "try" to pick it up.
What did you do? Did you pick it up or did you NOT pick it up? You picked it up, right?
It's the same with financial habits. Don't "try" to do it, just start doing it. "Trying" to change a habit will most likely mean that habit won't change.
You have to decide. "I'm finally ready to ACT on what I know I should do. It's time! I've had enough of this debt stuff. I've had it with being out of God's will in this area. I'm tired of feeling guilty before God and those I love. I'm no longer going to try. I'm just going to do it. God please help me because I'm just going to DO IT."
Build yourself consistently by increasing your knowledge and understanding of what God has to say about finances. Then START to apply. Don't TRY. Just DO IT.
Take action NOW on one financial principle or one practical application and stay with it until it becomes a habit (about three weeks) then move on from there.
You can and will begin to get out of debt. You can and will learn to experience Debt Free Living God's Way.
------
Bob Louder is considered a leading biblical finance expert, and has been working in the area of biblical finance for 20 years. He's been endorsed by some of the most high profile and successful Christian authors and teachers like Larry Burkett, Ron Blue, Dave Ramsey and others.
Bob is the creator the "4 Weeks Money Mentoring Program", a unique online training for transforming money management and wealth building efforts into a highly effective financial strategy - in 4 weeks flat. Its power comes from focusing on biblical principles combined practical application, delivered in a format and pace that makes it easy to get results.
He just doesn't get it. Each month he reads a new financial book or attends a new "get out of debt" seminar, but his results are always the same -- zilch.
This has been going on for years and his debt continues to grow, along with personal and family frustrations.
Do you know someone like that? Are you like that?
The way he's going now, a month of one-on-one with Dave Ramsey wouldn't help.
I used to be on a similar path. But then everything started to change -- for the better.
I started to do exactly the opposite of my friend and my debt started to go down and my peace started to go up.
Here's what I did and here's the advice I'd give you. There's a way to get out of debt and grow financial peace exponentially.
And this way always works.
When you apply this advice, your relationship with God and those closest to you will get better, your earnings will grow, your debts will diminish, and your lifestyle will improve.
Your life will quickly transform when YOU start to apply this principle.
Here it is.
WHEN YOU BUILD YOURSELF CONSISTENTLY, MONEY FREEDOM WILL GROW EXPONENTIALLY.
Remember this: every level of income DEMANDS a different you. Every step along the path to Debt Fr.ee Living God's Way REQUIRES a different you. You can't get to where you want to be by staying where you are.
It's really simple. The fastest way to get out of debt and begin to enjoy Debt Free Living God's Way is to learn and APPLY faster. Ask yourself this: What is one financial habit I can start improving RIGHT NOW?
Start small. Take one step at a time.
Write this "one way" on a note and put it on your refrigerator.. What will you write? What is the one small step you can take today?
Honestly, you don't need anyone to give you any suggestions. You already know what it is. You just haven't decided to do it. Maybe you've tried. But you've never done it.
By the way, I hate it when someone says they're going to "try" to change a financial habit. Why? Let me show you.
Look at the desk in front of you. Fix your eyes on something you are able to pick up.
Ready? Now "try" to pick it up.
What did you do? Did you pick it up or did you NOT pick it up? You picked it up, right?
It's the same with financial habits. Don't "try" to do it, just start doing it. "Trying" to change a habit will most likely mean that habit won't change.
You have to decide. "I'm finally ready to ACT on what I know I should do. It's time! I've had enough of this debt stuff. I've had it with being out of God's will in this area. I'm tired of feeling guilty before God and those I love. I'm no longer going to try. I'm just going to do it. God please help me because I'm just going to DO IT."
Build yourself consistently by increasing your knowledge and understanding of what God has to say about finances. Then START to apply. Don't TRY. Just DO IT.
Take action NOW on one financial principle or one practical application and stay with it until it becomes a habit (about three weeks) then move on from there.
You can and will begin to get out of debt. You can and will learn to experience Debt Free Living God's Way.
------
Bob Louder is considered a leading biblical finance expert, and has been working in the area of biblical finance for 20 years. He's been endorsed by some of the most high profile and successful Christian authors and teachers like Larry Burkett, Ron Blue, Dave Ramsey and others.
Bob is the creator the "4 Weeks Money Mentoring Program", a unique online training for transforming money management and wealth building efforts into a highly effective financial strategy - in 4 weeks flat. Its power comes from focusing on biblical principles combined practical application, delivered in a format and pace that makes it easy to get results.
Great Ways To Save Money
Everybody wants to save money, but the way you do it versus the way someone else does it may be very different. There are lots of ways to go about saving a little extra money every month and we are here to give you a few ideas.
Try to figure out what you purchase every month that you do not need and scrap it. Get a 20 ounce soda every day after work? Get out your calculator and multiply the number of days a week you work by how much that soda costs you every time you buy it and see how much money you are throwing away. Do you smoke? With packs of cigarettes averaging over $4 per pack, you probably spend over $1,000 to $1,800 per year just on this habit alone! That is enough for a decent vacation or in a lot of cases, a full house payment! Ditch smoking as soon as possible if you are money-minded.
Take a look at your subscriptions and ask yourself if you really need them. I have a World of Warcraft subscription that is billed to my credit card every month, yet I have not actually played it in a month and a half. Cancel any recurring subscriptions that you have that you are not making use of or, if possible, simply purchase the item whenever you do find that you need it.
Something else that is good to practice is paying yourself. As soon as you get your paycheck, take some of it and put it into your savings account. Pay yourself before you do anything and trust me, you will manage to get by. After all, how much does $20 to $50 really help or hinder anything?
Depending on what you want to save your money for, set a savings goal. If it is a small purchase, all you really have to do is find out how much the item costs and by when you want to be able to purchase it. If it is a larger purchase, such as a car or a house, determine how much you want to spend, how much of a down payment you want to have, and by when you want to be able to make this purchase. Be sure that you can attain the goal that you are setting for yourself within the amount of time that you set, because if it is unattainable, you will only become discouraged in the end.
And last, but certainly not least, the best way to save money in the long run is to simply live below your means. This means that you should not extend yourself financially even close to what you are capable of. Make sure that by the time you add up your housing, food, transportation, tax, and health care expenses that you will have more than enough left over to put in the bank. Remember that rich people did not get that way by overextending themselves financially. They were cheap and always hunted for a bargain and so should you.
Try to figure out what you purchase every month that you do not need and scrap it. Get a 20 ounce soda every day after work? Get out your calculator and multiply the number of days a week you work by how much that soda costs you every time you buy it and see how much money you are throwing away. Do you smoke? With packs of cigarettes averaging over $4 per pack, you probably spend over $1,000 to $1,800 per year just on this habit alone! That is enough for a decent vacation or in a lot of cases, a full house payment! Ditch smoking as soon as possible if you are money-minded.
Take a look at your subscriptions and ask yourself if you really need them. I have a World of Warcraft subscription that is billed to my credit card every month, yet I have not actually played it in a month and a half. Cancel any recurring subscriptions that you have that you are not making use of or, if possible, simply purchase the item whenever you do find that you need it.
Something else that is good to practice is paying yourself. As soon as you get your paycheck, take some of it and put it into your savings account. Pay yourself before you do anything and trust me, you will manage to get by. After all, how much does $20 to $50 really help or hinder anything?
Depending on what you want to save your money for, set a savings goal. If it is a small purchase, all you really have to do is find out how much the item costs and by when you want to be able to purchase it. If it is a larger purchase, such as a car or a house, determine how much you want to spend, how much of a down payment you want to have, and by when you want to be able to make this purchase. Be sure that you can attain the goal that you are setting for yourself within the amount of time that you set, because if it is unattainable, you will only become discouraged in the end.
And last, but certainly not least, the best way to save money in the long run is to simply live below your means. This means that you should not extend yourself financially even close to what you are capable of. Make sure that by the time you add up your housing, food, transportation, tax, and health care expenses that you will have more than enough left over to put in the bank. Remember that rich people did not get that way by overextending themselves financially. They were cheap and always hunted for a bargain and so should you.
Do You Need To Save Grocery Money?
We would all like to save money on our grocery bill every week, but many of us have full schedules and we do not have much time to think about just what we can do to spend less money. The smallest actions can really add up over the long haul.
I know we all hate the idea of clipping coupons to save money, but they can actually help a lot as long as you know which ones are worth clipping. Do not bother clipping coupons you are not likely to use or those that have expiration dates that are sooner than you will be going back to the store. If you have the time and the energy, you can even double your savings with coupons if you keep track of when your store is going to have the items that you have coupons for on sale. Try not to use your coupons unless the item is on sale to get the maximum savings, but when you use them is up to you.
Cut out the cigarettes. We all know that cigarette smoke is bad for us and the people around us, but think about just how much money you spend every month on the habit. Sheesh! A pack of cigarettes costs on average around $4.50, including the taxes. If you smoke a pack a day, then you will spend around $30 per week or close to $1,600 per year! That is a lot of money that you are basically rolling up and setting on fire each year. Not only that, but if you smoke while driving or even inside your own home, you are ruining its interior. Selling either your vehicle or home later will cost you extra in cleaning fees. Do your budget a favor and kick the habit.
Do yourself a favor and leave the kids at home when you go grocery shopping. Kids are pretty persuasive, especially when they are misbehaving in the store, so they may try to get you to buy them things in exchange for being quiet. If you have to, make a list of things the kids want before you go so they will get what they want without having to argue with you over it in the store. Let each child pick one item and if they can't think of anything they want before you leave, then there is nothing they need.
Create a grocery budget every month. Go back and look at what you have spent on groceries the past 3 months and see how much you have spent on average. Determine how much you want to shave off that bill and shoot for it. The only way to know how much you are saving is to know how much you were spending before.
I know we all hate the idea of clipping coupons to save money, but they can actually help a lot as long as you know which ones are worth clipping. Do not bother clipping coupons you are not likely to use or those that have expiration dates that are sooner than you will be going back to the store. If you have the time and the energy, you can even double your savings with coupons if you keep track of when your store is going to have the items that you have coupons for on sale. Try not to use your coupons unless the item is on sale to get the maximum savings, but when you use them is up to you.
Cut out the cigarettes. We all know that cigarette smoke is bad for us and the people around us, but think about just how much money you spend every month on the habit. Sheesh! A pack of cigarettes costs on average around $4.50, including the taxes. If you smoke a pack a day, then you will spend around $30 per week or close to $1,600 per year! That is a lot of money that you are basically rolling up and setting on fire each year. Not only that, but if you smoke while driving or even inside your own home, you are ruining its interior. Selling either your vehicle or home later will cost you extra in cleaning fees. Do your budget a favor and kick the habit.
Do yourself a favor and leave the kids at home when you go grocery shopping. Kids are pretty persuasive, especially when they are misbehaving in the store, so they may try to get you to buy them things in exchange for being quiet. If you have to, make a list of things the kids want before you go so they will get what they want without having to argue with you over it in the store. Let each child pick one item and if they can't think of anything they want before you leave, then there is nothing they need.
Create a grocery budget every month. Go back and look at what you have spent on groceries the past 3 months and see how much you have spent on average. Determine how much you want to shave off that bill and shoot for it. The only way to know how much you are saving is to know how much you were spending before.
Need To Save Money In College?
When starting out in college, most of us do not have a whole lot of money to spend or save, so what little we do have has to go pretty far. Between books, tuition, basic living expenses, and a little spending money, most of us do not have a lot left over. How can you maximize the amount of money you have while you are going to college? Here are a few ideas.
When it comes to checking and savings accounts, do your best to find a free one of both. A lot of checking and savings accounts will charge you money to use them and these amounts can be anywhere from $3 to $10 and up per month.
If you have to have a credit card, make sure you get one that offers you some kind of reward for using it. Depending on what you like to spend money on the most, you may want to get one card over another. Choose wisely and never be late on your payments.
Like to use your debit card instead? Be careful with these, too, since most debit cards these days will continue to work even after you have become overdrawn at the bank. Overdraft fees can really start to add up, so if you have a problem keeping track of how much money you are spending from day to day, use cash instead.
Take the change that you have left over when you do use cash and put it into a container of some kind in your room. You can get free coin rollers at the bank and if you count and roll the change yourself instead of using those machines at grocery stores, you can save a lot, since these machines will charge you a fee. That is why they are there.
If you do not need one of your textbooks anymore, the best thing for you to do with it is sell it to another student for a little less than you paid for it. At least when you do this, you will get most of your money back.
When it comes to eating cheap, try not to eat too much fast food or ramen noodles. Ramen noodles are really, really cheap, but they're also really, really bad for you. Try not to waste the food that you do purchase by making solid use of Ziploc bags.
When it comes to checking and savings accounts, do your best to find a free one of both. A lot of checking and savings accounts will charge you money to use them and these amounts can be anywhere from $3 to $10 and up per month.
If you have to have a credit card, make sure you get one that offers you some kind of reward for using it. Depending on what you like to spend money on the most, you may want to get one card over another. Choose wisely and never be late on your payments.
Like to use your debit card instead? Be careful with these, too, since most debit cards these days will continue to work even after you have become overdrawn at the bank. Overdraft fees can really start to add up, so if you have a problem keeping track of how much money you are spending from day to day, use cash instead.
Take the change that you have left over when you do use cash and put it into a container of some kind in your room. You can get free coin rollers at the bank and if you count and roll the change yourself instead of using those machines at grocery stores, you can save a lot, since these machines will charge you a fee. That is why they are there.
If you do not need one of your textbooks anymore, the best thing for you to do with it is sell it to another student for a little less than you paid for it. At least when you do this, you will get most of your money back.
When it comes to eating cheap, try not to eat too much fast food or ramen noodles. Ramen noodles are really, really cheap, but they're also really, really bad for you. Try not to waste the food that you do purchase by making solid use of Ziploc bags.
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