It is a rare person who can say they have enough money. Most of us believe a little (or a lot) more money would help life to be easier, problems to be solved, and more joy to be present in our lives. To have this extra money we either need to make more than we already do, or spend less than we are presently spending.
Often, spending less is the quicker way to have some extra money show up. But this requires some self-control and, as the psychologists put it, the ability to “delay gratification.”
Such self-control can be learned by almost everyone. However, it requires the conquering of the “itch” to buy things right now. If you can embark on a program of retraining your brain to save for future payoffs, then you can beat the “itch” and have abundance in your finances.
Unfortunately, we can so easily fall into fulfilling our immediate desires. If we get a bonus, inheritance, or even Friday’s paycheck, we often give in to the irresistible urge to splurge on anything we lay our eyes on. What a dangerous mistake! We squander the future for today’s appetites.
What is shiny and new today often fades by tomorrow. The trinkets pass into meaninglyness, the electronic doodads become outdated, and the expensive meals are consumed and forgotten. If only we could practice some patience and self-control, realizing and thinking about the really important things that might value in the future.
We might like to have the down payment on a mortgage, or the ability to take a longer vacation, or just the peace of mind of having a rainy day fund. This kind of financial success begins with our conscious effort to control our expenditures and save rather than spend.
So, how do we begin to learn the self-control, saving process? There are many ways that people take for granted. Here’s a list to get you started. These items might seem impossible, but they aren’t. I see people learn from them everyday.
1. For a week, assign yourself to be aware of each and every purchase. Decide whether it is a purchase that is based on impulse or prior planning. When in balance, there is nothing wrong with impulse buying, however, if you wish to save money, this is the place to start. When you notice the impulse, ask yourself if you will regret in the future not having saved this money.
2. Identify your needs and wants. A need is something that is basic to survival: food clothing, shelter, medical and dental care, and information like this on how to be successful in life. A want is something that is about more than just survival. It is something that gives you joy. Needs always come first, but we need to meet a few wants or life becomes rather dull.
3. Look for a person who can serve as a role model for you. Adopt a financial lifestyle similar to what this person does. It’s much easier to practice self-control and delayed gratification when you see it practiced by someone you respect.
This is just a beginning, but what a great start! If you can do just these three things, you're well on your way to some extra money in your bank account.
Steve Roberts is a Marriage & Family Therapist.
He's been helping Families cope with everyday life
for over 20 years.
Get Up To Date Info and Videos about Your Family Budget
at http://123whatworks.com/yourfamilybudget/
Friday, December 19, 2008
Tuesday, December 16, 2008
Budget Travel - Season and Destination are Most Important
We all need some time out of our busy work schedules. Taking a travel package would be the best way to invigorate and unwind. Enjoying a vacation is the best way to spend a great time with family and simplest way to connect with yourself and your family.
Create your individual tour
Once you decide to take a trip, you need to gather all relevant travel information for having a good time. If you prefer a planned an organized holiday, you can book yourself with a travel package. In this system, you can enjoy visiting in a group and let others to handle all the details of tour package. There are many tour operators who can provide you enticing trips for providing you a great time. Adventurous people can choose packages that include multi-day hiking, trekking and river trips. Experience some of the exciting moments of having complete fun and entertainment with like-minded people.
Plan your trip:
If you don’t like someone else to guide you to enjoy your vacations, then you can make your plans. Start looking through internet and decide on a place that can refresh your senses. Savvy tourists can make their plans in much economical cost. Plan carefully and make proper arrangement for enjoying the trip.
Read guide books of the concerned area to get all the details on the chosen destination. You can get useful information via internet so they you can make plans accordingly. Once you make plans, you will need to look for a local travel agent. A local guide can help you to visit all important sights of a place. A guide will help you to find an affordable lodging and shopping places to complete your trip. Also, a guide will tell you the historical importance of the chosen place.
Create your individual tour
Once you decide to take a trip, you need to gather all relevant travel information for having a good time. If you prefer a planned an organized holiday, you can book yourself with a travel package. In this system, you can enjoy visiting in a group and let others to handle all the details of tour package. There are many tour operators who can provide you enticing trips for providing you a great time. Adventurous people can choose packages that include multi-day hiking, trekking and river trips. Experience some of the exciting moments of having complete fun and entertainment with like-minded people.
Plan your trip:
If you don’t like someone else to guide you to enjoy your vacations, then you can make your plans. Start looking through internet and decide on a place that can refresh your senses. Savvy tourists can make their plans in much economical cost. Plan carefully and make proper arrangement for enjoying the trip.
Read guide books of the concerned area to get all the details on the chosen destination. You can get useful information via internet so they you can make plans accordingly. Once you make plans, you will need to look for a local travel agent. A local guide can help you to visit all important sights of a place. A guide will help you to find an affordable lodging and shopping places to complete your trip. Also, a guide will tell you the historical importance of the chosen place.
Thursday, November 20, 2008
Discount Gas Cards - A Way To Save
Discount Gas Cards - 1 Way to Save
When gas prices were one dollar a gallon, you rarely heard anyone complaining about the gas prices. Once they hit that three dollar a gallon mark, it seemed like the whole country went mad. Like anything in life, there are plenty of ways to save money on gas. Below, we've listed a few ways on how you can save money so you don't have to pay the full price at the pump.
Check the Internet
The Internet is filled with a ton of information, you basically have the world at your fingertips. There are plenty of web sites out there that will show you how much gas is in your area. Believe it or not, a few miles can make a difference when it comes to a price per gallon. Check web sites like gasbuddy.com and gaspricewatch.com when it comes to checking out gas prices in your area. When you find a cheap price, make sure you drive or make way for that gas station.
Target the poor areas
If you live in a fairly moderate neighborhood, you may want to jump to the other side of town and go to that gas station. Make sure that neighborhood is safe before you fill up. The reason poorer areas have cheaper gas is due to the property taxes, etc. Poorer areas generally have lower taxes, therefore making gas prices a lot cheaper than the wealthy areas.
Sign up for for a wholesale club
Places like CostCo and Sam's Club always have cheaper gas that the mainstream gas stations. This is because of their membership fees. In order to fill up with gas at these gas stations, you're going to have to have a membership to fill up. Sometimes you may find that these memberships pay off for you in the long run because of the savings. Other than saving on gas, you'll also find that the prices of goods in the store pay off as well.
Consider a discount gas card
As mentioned in the title, this is probably the best way to save on gas. There are so many credit card offers out there, some people forget to realize that there are ways to save money on gas. A gas rebate credit card generally allows you save about five percent per gallon. This may not sound like a lot but this is five cents per dollar. If gas is at three dollars a gallon, you're saving fifteen cents a gallon! As you can imagine, this can add up quite quickly.
Use your imagination when it comes to saving on gas. Other ways to find out how to save on gas are local gas price wars, where the owners will compete by lowering their gas prices, look for cash only gas stations as these gas stations offer lower prices, and another way is to look for coupons. Yes, gas stations sometimes do offer gas coupons. There are a ton of ways to save on gas and you shouldn't be paying full price for your gas anymore.
Tom Tessin
Tom Tessin is the president of the T2 Web Network, LLC creating websites such as http://www.findcollegecards.com
When gas prices were one dollar a gallon, you rarely heard anyone complaining about the gas prices. Once they hit that three dollar a gallon mark, it seemed like the whole country went mad. Like anything in life, there are plenty of ways to save money on gas. Below, we've listed a few ways on how you can save money so you don't have to pay the full price at the pump.
Check the Internet
The Internet is filled with a ton of information, you basically have the world at your fingertips. There are plenty of web sites out there that will show you how much gas is in your area. Believe it or not, a few miles can make a difference when it comes to a price per gallon. Check web sites like gasbuddy.com and gaspricewatch.com when it comes to checking out gas prices in your area. When you find a cheap price, make sure you drive or make way for that gas station.
Target the poor areas
If you live in a fairly moderate neighborhood, you may want to jump to the other side of town and go to that gas station. Make sure that neighborhood is safe before you fill up. The reason poorer areas have cheaper gas is due to the property taxes, etc. Poorer areas generally have lower taxes, therefore making gas prices a lot cheaper than the wealthy areas.
Sign up for for a wholesale club
Places like CostCo and Sam's Club always have cheaper gas that the mainstream gas stations. This is because of their membership fees. In order to fill up with gas at these gas stations, you're going to have to have a membership to fill up. Sometimes you may find that these memberships pay off for you in the long run because of the savings. Other than saving on gas, you'll also find that the prices of goods in the store pay off as well.
Consider a discount gas card
As mentioned in the title, this is probably the best way to save on gas. There are so many credit card offers out there, some people forget to realize that there are ways to save money on gas. A gas rebate credit card generally allows you save about five percent per gallon. This may not sound like a lot but this is five cents per dollar. If gas is at three dollars a gallon, you're saving fifteen cents a gallon! As you can imagine, this can add up quite quickly.
Use your imagination when it comes to saving on gas. Other ways to find out how to save on gas are local gas price wars, where the owners will compete by lowering their gas prices, look for cash only gas stations as these gas stations offer lower prices, and another way is to look for coupons. Yes, gas stations sometimes do offer gas coupons. There are a ton of ways to save on gas and you shouldn't be paying full price for your gas anymore.
Tom Tessin
Tom Tessin is the president of the T2 Web Network, LLC creating websites such as http://www.findcollegecards.com
Monday, November 10, 2008
Save Money on Gas By : Andrea Spenser
With the ever-soaring prices of gas these days, and our ever shrinking wallets, we’re all looking for ways to save money on gas so that we can conserve our own resources, as well as those of the planet. Short of running out to trade in our huge SUVs to purchase new fuel-efficient hybrids, there are some easy and painless ways to make trips to the gas station a bit less frequent and to save money in the process.
Here are seven easy ways to save money on gas, without much effort:
1. Get rid of excess weight in the car. The more weight the engine has to carry, the more fuel it needs to do its job. Don’t carry around extras in your car. The lighter the better.
2. Check tire pressure. Improperly inflated car tires decrease your fuel efficiency. Check your owner’s manual to make sure your tires are properly inflated.
3. Turn your car off when waiting. One minute of idling uses roughly the same amount of gas as it takes to start your car, so if you are going to be waiting more than that, turn the car off.
4. Get regular tune ups and change air filters often. A car that is working in tip-top condition is more efficient and burns less excess gas.
5. When driving on the highway, keep windows closed. The drag created when the windows are open at highway speed can reduce your fuel efficiency by as much as 10%.
6. Carpool when possible. Whether you can find a colleague to commute to work with or a kid on your child’s soccer team that lives nearby, any time you can carpool, you will not only save money, but help the planet as well.
7. Shop around for the lowest gas prices in your area. Check sites like www.gasbuddy.com or www.gaspricewatch.com .
These gas saving tips don't involve a lot of effort. All it takes is a few minor changes in your routine and you'll be keeping more money in your wallet, rather than pouring it into your gas tank!
Article Source: http://articlestoreprint.com
Information about the Author: If you would like to learn more about how to save money on gas, as well as other money-saving tips, visit www.shortcutsleuth.com
Sunday, November 9, 2008
Learning About Budgeting And Money Management Is Vital To Avoid Financial Disasters
By: MIKE SELVON
Anyone who has worried and stressed about their finances has probably also had a lot of concern over doing a good job with the budgeting and money management of their personal affairs. It is important to have good money management skills in this day and age so that you are able to enjoy the many things that life has to offer, rather than constantly worrying that you just don't have enough money to get by.
Learning the ins and outs of personal financial budgeting and management is something that is ideally taught to youngsters at an early age so that they can develop good money management skills right from the start. The later someone begins to take financial management seriously, the more potential there is for them to get into personal money management problems and even into serious financial straits that can be difficult to recover from.
It is always best when children and teens are able to learn about budgeting and money management because this education and turn into a set of money management skills that will be with them for the rest of their lives. When people don't have the chance to learn how to manage credit and their personal finances, they will most likely waste money and burn through it as soon as they earn it, and they may get themselves into debt way over their heads.
There are many people who enter adulthood without having learned about budgeting and personal financial management. They find themselves exhilarated at the money they make at their first full-time job, and often such exhilaration leads to overspending and a lack of preparing for the future, of not being prepared for emergencies and of overusing credit cards and other credit vehicles that can soon lead to serious debt.
If a person sinks deeply into debt when they are still in their twenties, because of immaturity and poor money management abilities, then they can end up spending the next twenty years, or more, trying to dig out of the hole of consumer debt that they put themselves into. Even worse, poor money management and significant debt can also lead to bankruptcy all too easily and this is a blemish on a person's credit record that lingers for over a decade.
The ramifications and consequences of bankruptcy are more than just a matter of clearing away excessive debt and having your credit damaged. There are many other underlying issues that arise and filing for bankruptcy can affect your ability to get a good job, affect the insurance rates you pay, affect the interest rate on a mortgage, auto loan, and other types of loans, and can be an embarrassing thing to have to try to explain every time someone needs to pull your credit report.
The fortunate thing is that people who make the effort to learn about budgeting and money management will stand a good chance of averting personal finance money management disasters, such as bankruptcy. Indeed, it is never too late to start improving financial management in your life, yet starting sooner rather than later is always recommended.
Author Resource:-> Educate yourself about budgeting and money management from Mike Selvon portal. We appreciate your feedback and welcome your comments at our financial money management blog.
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Saturday, November 8, 2008
10 Budget Ideas For Fancy Dress Costumes
If you are looking for a cheap idea for a fancy dress outfit, you should not have to look far. It is simple, painless, and fun to throw together fancy dress costumes even when money is tight and times are hard. With the whole family pulling together to find the best costume, it can come together in a matter of minutes and it can be a fun adventure that your family may repeat for many years to come. So here are some great ideas for cheap fancy dress outfits:
Fancy Dress Costumes - Female
1. Fairy Godmother
Find any party dress from a local thrift store or the back of one’s closet. An inexpensive tiara and wand can be easily purchased at any place that sells costume supplies. Fairy wings can also be added, either purchased or handmade out of cardboard and glittering spray paint.
2. Witch
Witch clothes do not have to be all black! The same party dress can double as a witch costume if a black dress cannot be found. Simply pair with a black, pointed hat and black boots.
3. Mermaid
A girl who owns a single-color leotard can easily be transformed into a mermaid. Over the leotard and tights, loosely wrap green tinted cellophane over the legs. Glue on purchased shells throughout, placing some in the child’s hair as well.
4. Ragdoll
The easiest of all costumes, the most troublesome piece of the ragdoll is the hair. Clothes can be salvaged from the back of the closet or from a thrift store, but the wig should be made from gathering together red yarn, cut short in the front for long bangs. The child’s face should be painted with heavy makeup, resembling that of a clown.
5. Angel
This is a fun outfit for young ladies looking for Christmas fancy dress outfits.
A white dress paired with either a bought or homemade halo and wings (such as those for the fairy godmother) are all that are needed for an angel. To make a halo, use a wire hanger, bent into a circle on one end, wrapped in Christmas tinsel.
Fancy Dress Costumes - Male
1. Pirate
One of the most popular costumes for boys these days is a pirate. Pirate costumes consist of little more than ripped pants, a striped shirt, and a vest. All of these items are easily found at thrift stores. Purchase an eyepatch, a pirate’s hat, and a plastic sword to complete the ensemble.
2. Elvis Presley
The Elvis costume takes a bit of ingenuity. Consider using a jumpsuit, if one can be found, or a pair of pants and shirt that are the same color (black works great). Add a sequined belt - the bigger the better. If your child does not have enough hair to tease into a pompadour, an Elvis wig can be purchased at costume shops.
3. Cowboy
Play cowboy hats are very inexpensive if your child does not already own one. The rest of the outfit can likely be found right in his closet! Use a button down shirt, a vest, a pair of jeans, and some boots for the ensemble. Add a red bandana tied around the neck. For little ones, stick horses can add a lot of fun to the costume.
4. Vampire
A white shirt and black pants are the only clothes required for a vampire. Purchase vampire teeth and the outfit is done! For makeup, use white powder on the face, dark eyeliner around the eyes, and red lipstick. Slick his hair back for added effect.
5. Sports Hero
Most little boys are wild about one sport or another, so finding sports paraphernalia in his closet should not be difficult at all. Simply raid the closet and pull out his favorite jersey or t-shirt and add the matching equipment. This is the least expensive and easiest of all dress costumes!
If you are looking for plus size fancy dress costumes, then why not go as a ghost or the ever popular Father Christmas.
Fancy Dress Costumes - Female
1. Fairy Godmother
Find any party dress from a local thrift store or the back of one’s closet. An inexpensive tiara and wand can be easily purchased at any place that sells costume supplies. Fairy wings can also be added, either purchased or handmade out of cardboard and glittering spray paint.
2. Witch
Witch clothes do not have to be all black! The same party dress can double as a witch costume if a black dress cannot be found. Simply pair with a black, pointed hat and black boots.
3. Mermaid
A girl who owns a single-color leotard can easily be transformed into a mermaid. Over the leotard and tights, loosely wrap green tinted cellophane over the legs. Glue on purchased shells throughout, placing some in the child’s hair as well.
4. Ragdoll
The easiest of all costumes, the most troublesome piece of the ragdoll is the hair. Clothes can be salvaged from the back of the closet or from a thrift store, but the wig should be made from gathering together red yarn, cut short in the front for long bangs. The child’s face should be painted with heavy makeup, resembling that of a clown.
5. Angel
This is a fun outfit for young ladies looking for Christmas fancy dress outfits.
A white dress paired with either a bought or homemade halo and wings (such as those for the fairy godmother) are all that are needed for an angel. To make a halo, use a wire hanger, bent into a circle on one end, wrapped in Christmas tinsel.
Fancy Dress Costumes - Male
1. Pirate
One of the most popular costumes for boys these days is a pirate. Pirate costumes consist of little more than ripped pants, a striped shirt, and a vest. All of these items are easily found at thrift stores. Purchase an eyepatch, a pirate’s hat, and a plastic sword to complete the ensemble.
2. Elvis Presley
The Elvis costume takes a bit of ingenuity. Consider using a jumpsuit, if one can be found, or a pair of pants and shirt that are the same color (black works great). Add a sequined belt - the bigger the better. If your child does not have enough hair to tease into a pompadour, an Elvis wig can be purchased at costume shops.
3. Cowboy
Play cowboy hats are very inexpensive if your child does not already own one. The rest of the outfit can likely be found right in his closet! Use a button down shirt, a vest, a pair of jeans, and some boots for the ensemble. Add a red bandana tied around the neck. For little ones, stick horses can add a lot of fun to the costume.
4. Vampire
A white shirt and black pants are the only clothes required for a vampire. Purchase vampire teeth and the outfit is done! For makeup, use white powder on the face, dark eyeliner around the eyes, and red lipstick. Slick his hair back for added effect.
5. Sports Hero
Most little boys are wild about one sport or another, so finding sports paraphernalia in his closet should not be difficult at all. Simply raid the closet and pull out his favorite jersey or t-shirt and add the matching equipment. This is the least expensive and easiest of all dress costumes!
If you are looking for plus size fancy dress costumes, then why not go as a ghost or the ever popular Father Christmas.
Saturday, October 18, 2008
Myths & Common Misperceptions about Budgeting
Proper financial planning
is the key to avoiding living from paycheck to paycheck. We are living in trying times, which greater emphasizes the importance of budgeting your money. In order for our economy to come out of the recession before it gets to deep and long, we must start with the individual. By instilling proper financial planning principles into the masses people will start realizing how and what people can do with their money. I see people all the time living from paycheck to paycheck often needing advances because they do not know how to manage their money.
A very easy and efficient tool to learn and use is budgeting. Budgeting is ultimately a plan that allows you to allocate your funds anyway you wish. Budgeting allows you to tackle your goals from a financial perspective through awareness. In determining your budget you are deciding how much money goes where so that you can chalk up the rest to savings. Budgeting may get a bad rap for many people perceive being on a budget as being on a financial diet. However this is not true for your budget is customized to the way that you see fit.There are some common myths and misperceptions about budgeting that are ultimately false and I want to take the time to clear up the air. Setting a budget means that you have is constantly sacrificing. This statement is only as true as people let it be, for every single budget is customized. Therefore a person who is trying to save up for something in a small amount of time, then yes some sacrifice will be involved.
However most budgets are put in place to ensure that people are allocating their funds correctly and responsibly. If there is no financial plan that exists people will be much more susceptible to participate in impulse purchasing. A common myth about budgeting is that it takes up too much time. Proper budgeting methods are not overly complicated or intricate that a 10 year old could compose one. Also, frankly people do not have time to not participate in budgeting.
The way that you spend your money decides a lot about the type of life you are living therefore budgeting should be high on your priority list. You will be able to determine significant cost savings by just laying out your expenses versus your revenues. Things that seemed important in the short term now do no look as important.Another misperception about budgeting is that it can cause a rift in your family. Living on a budget is not a new concept, and maybe at first your family might need some time to get used to it but overtime it will seem normal. A good way to deal with this is determine a budget on a family basis saving up for something fun for the whole family. Getting the family to bond together to achieve a common goal will not only save you money, but it will place importance on what really matters most.
Article Directory: http://www.articlecube.com
Jeff Nelson gives advice on money management. His advice helps you to eliminate your debt faster. To make online Budgeting easy and set up your budgets for each category you are targeting, visit www.mint.com
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Friday, October 17, 2008
A plan for a debt free life
A Plan For A Debt Free Life
By: Geoff Hibbert
Find out how to eliminate debt and rebuild your credit today. Eliminate debt, paying far less per month then you are right now. The simple debt free living plan consists of three main parts a simple plan to eliminate debt, household budget planning, frugal Living and money saving tips.
Getting debt free is a tough decision. To eliminate debt is difficult, and with this tough decision comes sacrifice, and lots of it.
Would you be surprised if I told you that right now professional debt elimination advisors are helping hundreds of thousands people eliminate debt and find freedom in their lives. They're eliminating debt and helping ordinary people eliminate their debt and own their homes, forever and in peace. There is a process to follow to eliminate debt all by oneself and it is not easy without support. If the organization and the self-discipline are there though anything is possible. Employ the services of a qualified debt management advisor and you will stand an even higher chance of success.
Credit counselling with the help of a good debt management advisor can lead you eventually to debt free living. Many credit counselling services are non-profit and funded in-part by the creditors themselves, remember that if they are being funded by creditors then there is bound to be an amount of split loyalty, make sure that you also investigate the paid for services.
Credit counsellors who provide debt management services within a professional organisation are experienced, understanding, non judgemental and leaders in the credit counselling industry. Credit counselling and the peace of mind that it brings will help you take back control of your life. Creditors are happy and you sleep reasonably well at night.
Creditors and collectors prefer to deal with the person who owes the debt as they feel they can bully you into paying very easily. As opposed to dealing with a debt management company, who will fight on your behalf for lower payments and frozen interest charges. It is in your interest not to let the creditors have all of their own way.
Credit card companies will generally grant an interest rate reduction as long as you have a good credit counselling or debt management company fighting your corner and have shown financial willingness to pay. Credit cards interest rates vary somewhat but you can be guaranteed they will be high with many fees attached if you are undisciplined and do not make your payments in time or only pay the minimums. Credit cards are probably the most effective piece of credit for a debt management company to handle for you.
Once your debt management company has set up your scheme they will deal with all of the correspondence from your creditors for you and after a short period of adjustment your creditors will start to call your debt management advisor rather than you for reports on your case. This therefore gives you again the peace of mind and stress free days so that you can get on with the business of earning money, repaying your debts on your terms and most importantly focusing in on your goal of a debt free life.
Author Resource:-> Geoff Hibbert provides tailored debt management solutions and credit repair services through his websites http://www.thedebtmanagementcompany.co.uk
and http://www.creditrepairuk.co.uk
Article From Talkinmince Article Directory
Monday, October 13, 2008
Quiz- Is Your Debt Causing Depression?
Are you feeling hopeless about the future? Are you feeling hopeless and helpless about your current situation? Are you feeling depressed? Do you find no way to come out of this hopelessness? It is time to consult a Doctor about your depression.
Can your depression be related to your debts? Are you also having debts to repay? Debts can cause constant worry and make us feel depressed. Especially when we have no ready plan to repay our debt, the depression can be severe.
What are you planning about your debt? Have you planned any repayment schedule? Have you planned any method to increase your income? If not, please begin doing that. Let us look at this problem in totality. You have a certain income. You have a certain debt. You have certain expenses. You have to save money from your income and repay small amount every month so that one-day you are out of it. The first step is to write down all these figures. Then think of every method that can increase your income. Similarly try to reduce your expenses. This will obviously give you more money to repay. Now talk to your creditors. Ask them for rescheduling the debt so that is comfortable for you to repay. Approach them positively and explain the position. Be optimistic. They will agree.Feeling hopeless never solves the problem. Finding solution will do that. Fight your debt related depression with proper strategy and planning.
About the Author
The author C.D.Mohatta writes fun quizzes and fun tests on topics like love, personality, dating, relationships, friendship, movies, tv, music, business, etc. The author also writes for free ecards and greetings on holidays, birthday, love, friendship, family, expressions, celebrations and all events and occasions. One more site associated with the author has free sports games which surfers can play online. Source: ArticleTrader.com
Can your depression be related to your debts? Are you also having debts to repay? Debts can cause constant worry and make us feel depressed. Especially when we have no ready plan to repay our debt, the depression can be severe.
What are you planning about your debt? Have you planned any repayment schedule? Have you planned any method to increase your income? If not, please begin doing that. Let us look at this problem in totality. You have a certain income. You have a certain debt. You have certain expenses. You have to save money from your income and repay small amount every month so that one-day you are out of it. The first step is to write down all these figures. Then think of every method that can increase your income. Similarly try to reduce your expenses. This will obviously give you more money to repay. Now talk to your creditors. Ask them for rescheduling the debt so that is comfortable for you to repay. Approach them positively and explain the position. Be optimistic. They will agree.Feeling hopeless never solves the problem. Finding solution will do that. Fight your debt related depression with proper strategy and planning.
About the Author
The author C.D.Mohatta writes fun quizzes and fun tests on topics like love, personality, dating, relationships, friendship, movies, tv, music, business, etc. The author also writes for free ecards and greetings on holidays, birthday, love, friendship, family, expressions, celebrations and all events and occasions. One more site associated with the author has free sports games which surfers can play online. Source: ArticleTrader.com
Saturday, October 11, 2008
Five Tips for Shopping on a Budget
Sticking to a budget is hard enough, but malls, outlets and grocery stores don't make it any easier; with countless promotions, sales, and strategically-placed impulse-buy items, it's easy to get sidetracked and overspend. Willpower and discipline are great tools to combat overspending, but many people find it hard to maintain them when faced with a great sale. Never fear, there are a few simple tricks and tips you can use to help keep you on track and overcome the temptation to overspend.
1.Always take a list.
While seemingly simple, and even obvious, this is a great way to help keep spending on track. If you have a specific list of items you need, you can shop with more purpose, and avoid unnecessary browsing (which all too often leads to unnecessary buying).
2.Consolidate shopping trips.
Whenever possible, it's best to combine all your shopping into one day. This is a great way to make sure you don't spend extra time in a given store, browsing unnecessarily, or getting sidetracked from your pre-set shopping agenda. Plus, consolidating your shopping into one big outing will save gas in the long run, which is always a good thing, both for your budget, and for the environment.
3.Clip coupons.
Check your weekly paper for circulars and coupons. Be sure to have your list ready when you do this, to avoid adding unnecessary items (remember, just because it's on sale doesn't mean you need it). While you may not find coupons for everything you need, you'll likely find savings somewhere. Over time, even a few dollars a week will add up big time. Look at it this way: if you save just $4 per week, you'll end up with an extra $208 each year.
4.Plan ahead; shop accordingly.
Food is arguably one of the largest costs in any family's budget. It's one that can't be skipped or compromised, and with costs of everyday items like milk rising considerably, it can be a huge drain on any spending plan. While there's no realistic way around this need, there are ways to help maximize your spending. Planning meals a week in advance can help you make the most of your purchases; simply plan consecutive meals that use the same primary ingredients. Buy those ingredients in bulk to save even more. And always, always save (and use) leftovers.
5.Reward yourself.
Regardless of the best intentions, it's easy to get sucked in to unnecessary spending; it's practically human nature. An unexpected sale at your favorite store, a discount on an item you don't need, but have wanted for some time. You can curb overspending by operating on a rewards system. Set goals for yourself, like limiting spending to a certain amount, and make room in your budget for a special treat or reward when you reach your goal. If you don't achieve the goal, leave the reward money in place and try again for next month. Having something special to look forward to will make it easier to exercise self-control and avoid splurging on items you don't really need, or even particularly want.
About the Author
Ki is a real estate broker in Austin Texas. He site offers a graphical search for Austin homes. He also provides general information on Austin real estate and updated graphics on mortgage interest rates.
1.Always take a list.
While seemingly simple, and even obvious, this is a great way to help keep spending on track. If you have a specific list of items you need, you can shop with more purpose, and avoid unnecessary browsing (which all too often leads to unnecessary buying).
2.Consolidate shopping trips.
Whenever possible, it's best to combine all your shopping into one day. This is a great way to make sure you don't spend extra time in a given store, browsing unnecessarily, or getting sidetracked from your pre-set shopping agenda. Plus, consolidating your shopping into one big outing will save gas in the long run, which is always a good thing, both for your budget, and for the environment.
3.Clip coupons.
Check your weekly paper for circulars and coupons. Be sure to have your list ready when you do this, to avoid adding unnecessary items (remember, just because it's on sale doesn't mean you need it). While you may not find coupons for everything you need, you'll likely find savings somewhere. Over time, even a few dollars a week will add up big time. Look at it this way: if you save just $4 per week, you'll end up with an extra $208 each year.
4.Plan ahead; shop accordingly.
Food is arguably one of the largest costs in any family's budget. It's one that can't be skipped or compromised, and with costs of everyday items like milk rising considerably, it can be a huge drain on any spending plan. While there's no realistic way around this need, there are ways to help maximize your spending. Planning meals a week in advance can help you make the most of your purchases; simply plan consecutive meals that use the same primary ingredients. Buy those ingredients in bulk to save even more. And always, always save (and use) leftovers.
5.Reward yourself.
Regardless of the best intentions, it's easy to get sucked in to unnecessary spending; it's practically human nature. An unexpected sale at your favorite store, a discount on an item you don't need, but have wanted for some time. You can curb overspending by operating on a rewards system. Set goals for yourself, like limiting spending to a certain amount, and make room in your budget for a special treat or reward when you reach your goal. If you don't achieve the goal, leave the reward money in place and try again for next month. Having something special to look forward to will make it easier to exercise self-control and avoid splurging on items you don't really need, or even particularly want.
About the Author
Ki is a real estate broker in Austin Texas. He site offers a graphical search for Austin homes. He also provides general information on Austin real estate and updated graphics on mortgage interest rates.
Thursday, October 2, 2008
Holiday Shopping on a Budget
Submitted by dane
The holiday season is a time for friends, family, togetherness and fun. It's easy to get carried away when stocking up for the holidays from gifts, to food, to party favors and decorations, there are a seemingly endless array of ways to spend money in the name of the holiday season. In fact, the holiday season is the peak time of year for debt accumulation. While everyone wants to enjoy themselves during the holidays, and to show their loved ones how much they care, overspending is not the only (or even the best) way to accomplish these goals. Instead of building up outrageous debt, plan ahead and discipline yourself, in order to get through the holiday season on a reasonable budget.
One of the largest areas of overspending during the holidays is, of course, on gifts. The number one reason many people find themselves in debt after the holidays is not necessarily because they make purchases they can't afford, but because they make all their purchases at once. Instead of consolidating your shopping to the overly-hectic holiday season, plan ahead and start accumulating gifts throughout the year. The end of summer and back to school seasons are great for sales, and you'll likely find better deals for a lot of the items on your list. Similarly, though more long-term, hitting after-Christmas sales is an extremely cost-effective way to get great gifts without breaking the bank. Another option for gifts, particularly video games and other high-priced items, is to check out online auction sites like e-Bay.
But buyer beware: always read the full item description carefully, and don't be afraid to ask the seller questions about the items condition. Return policies vary from seller to seller, but they are obligated to give you honest, accurate information before you buy.
Another big area of overspending during the holiday season is on decorations and general ambiance a tree, ornaments, candles, lights, displays, table runners, tree skirts you name it and you can find it in a Christmas theme (and often at a significant mark up). The best way to avoid the temptation of going out and buying new decor every year, is to establish a sentimental value for these kinds of items. Have your children use finger paint to make the tree skirt, work together as a family to make everyone's stockings, and save all the ornaments you've accumulated over the years.
By creating and holding on to decorations that mean something special to your family, you'll create your own tradition, and save big on buying new items that don't mean anything to you.
And when you do need to pick up new decor items, take advantage of the deeply discounted post-holiday sales. Not only are these great resources for decor items, they're also ideal for stocking up on other holiday necessities like wrapping paper, greeting cards, bows, ribbons, stockings, and most any other holiday-themed item you can imagine. And best of all, you'll find them at clearance prices. With a little planning, creativity, and resourcefulness, you can have your fruit cake and eat it, too.
The holiday season is a time for friends, family, togetherness and fun. It's easy to get carried away when stocking up for the holidays from gifts, to food, to party favors and decorations, there are a seemingly endless array of ways to spend money in the name of the holiday season. In fact, the holiday season is the peak time of year for debt accumulation. While everyone wants to enjoy themselves during the holidays, and to show their loved ones how much they care, overspending is not the only (or even the best) way to accomplish these goals. Instead of building up outrageous debt, plan ahead and discipline yourself, in order to get through the holiday season on a reasonable budget.
One of the largest areas of overspending during the holidays is, of course, on gifts. The number one reason many people find themselves in debt after the holidays is not necessarily because they make purchases they can't afford, but because they make all their purchases at once. Instead of consolidating your shopping to the overly-hectic holiday season, plan ahead and start accumulating gifts throughout the year. The end of summer and back to school seasons are great for sales, and you'll likely find better deals for a lot of the items on your list. Similarly, though more long-term, hitting after-Christmas sales is an extremely cost-effective way to get great gifts without breaking the bank. Another option for gifts, particularly video games and other high-priced items, is to check out online auction sites like e-Bay.
But buyer beware: always read the full item description carefully, and don't be afraid to ask the seller questions about the items condition. Return policies vary from seller to seller, but they are obligated to give you honest, accurate information before you buy.
Another big area of overspending during the holiday season is on decorations and general ambiance a tree, ornaments, candles, lights, displays, table runners, tree skirts you name it and you can find it in a Christmas theme (and often at a significant mark up). The best way to avoid the temptation of going out and buying new decor every year, is to establish a sentimental value for these kinds of items. Have your children use finger paint to make the tree skirt, work together as a family to make everyone's stockings, and save all the ornaments you've accumulated over the years.
By creating and holding on to decorations that mean something special to your family, you'll create your own tradition, and save big on buying new items that don't mean anything to you.
And when you do need to pick up new decor items, take advantage of the deeply discounted post-holiday sales. Not only are these great resources for decor items, they're also ideal for stocking up on other holiday necessities like wrapping paper, greeting cards, bows, ribbons, stockings, and most any other holiday-themed item you can imagine. And best of all, you'll find them at clearance prices. With a little planning, creativity, and resourcefulness, you can have your fruit cake and eat it, too.
Monday, September 29, 2008
Create Many Income Streams For Yourself
I don't know about you, but I thank God that I live in this day and age, and not in some earlier time when the opportunities to create a life of financial abundance were significantly more constrained.
Use your imagination to conjure up mental movies of what it must have been like to be born 5,000 or even 500 years ago in a society that made upward mobility difficult, if not impossible!
What if you and I had been born a long time ago into a family of barley farmers?
Or perhaps had lived as shepherds or miners in some distant land ruled by a dynasty of despots? There might have been intermittent periods in our lives when we experienced some slight measure of material 'abundance', perhaps during times of good harvests, healthy flocks or high ore yields. Yet it is vital to remember that during those ancient times, we would always have needed to hope and pray that the general prices of whatever goods we produced would stay high (denominated in the local currency, assuming money was already in use then, or at least in terms of relative barter value - lots of a fisherman's catch, say, for a little of our barley, wool or copper).
© Rajen Devadason
Use your imagination to conjure up mental movies of what it must have been like to be born 5,000 or even 500 years ago in a society that made upward mobility difficult, if not impossible!
What if you and I had been born a long time ago into a family of barley farmers?
Or perhaps had lived as shepherds or miners in some distant land ruled by a dynasty of despots? There might have been intermittent periods in our lives when we experienced some slight measure of material 'abundance', perhaps during times of good harvests, healthy flocks or high ore yields. Yet it is vital to remember that during those ancient times, we would always have needed to hope and pray that the general prices of whatever goods we produced would stay high (denominated in the local currency, assuming money was already in use then, or at least in terms of relative barter value - lots of a fisherman's catch, say, for a little of our barley, wool or copper).
But how would we have fared if our production levels plummeted because of some plant or animal disease or a mine cave-in, or if a general glut decimated price levels?
And during the good times, how would we have stored our wealth safely and in a manner that generated growth before the advent of secure banks and regulated stock and bond markets?
You get the picture...
Today, in any nation where free enterprise reigns and where capital markets exist, there is an opportunity for regular people like you and me to earn a living in many, many, many ways! Nonetheless, most of us would still be better served honing our skills in one area of expertise rather than by dissipating our efforts in too many arenas.
So, are you a successful executive, sales person, doctor, lawyer, accountant, financial planner, pilot or dentist? Or are you a striving, struggling actor, artist, writer or poet?
The bottomline is it really doesn't matter what you do, as long as you do it well today and have a plan to continually improve your skills.
In our day and age, as long as we're capable of bringing in income, we are - at least in principle - able to create long-lasting wealth.
With numerous ways to turn a single active income source into lots of semi-active or wholly passive income sources, isn't it ironic that so few people ever bother to get to first base in this game?
Since you've penetrated so deep into this article already, chances are excellent that you are - or have the potential to be - among the elite minority of our 21st century. My assumption: You desire financial success in your life AND are willing to pay the price for it.
Consider then this simple but ever so powerful 3-part formula to long-term financial success:
1. Work hard to earn a decent wage;
2. Arrange your affairs so that you spend less than you earn;
3. Save and invest the difference... for a long, long time!
The manner in which you save and invest will determine whether you fail or succeed in moving from the, sadly, still conventional and thus 'normal' human condition of having just a single income source to the superior state of having many such streams.
Be warned, though: To succeed at this game, you must relinquish any residual negative attitudes about having lots of money. Many of us come from backgrounds that have imprinted our psyches with attitudes like...
rich people are evil
money is the root of all evil
money isn't important
It is interesting that the second of the three attitudes listed above is a very, very common misquotation (and misinterpretation) of a famous line from the Bible.
What the Good Book actually says (I suggest you not take my word for it but double check it for yourself in 1 Timothy 6:10a) is that '... the love of money is the root of all evil'.
I believe what that means is dangerous problems arise when we turn money into an idol, an end in itself, instead using it as a tool, as a means to achieve much greater, grander, more inspirational ends.
Because it will take awesome sacrifice, hard work and patience to get to the point where you have many sources of income instead of just one, it might be helpful for you to read how one of the richest men of his era felt about this subject.
America's 19th century steel king, Andrew Carnegie, once wrote an intriguingly entitled essay, The Gospel of Wealth, in which he stated:
"The fundamental idea of the gospel of wealth is that surplus wealth should be considered as a sacred trust to be administered by those into whose hands it falls, during their lives, for the good of the community."
If you reckon that making the world a better place is a good reason for you to improve your money management skills, here are 3 things you can do:
First, invest in yourself by reading and thinking about your area of primary expertise, then do the same on the subject of money.
Frankly, the more you know about your own area of employment or business, the more likely you are to be promoted by an employer or hired by richer clients. And the more you know about finance, the less likely you are to become helpless bait for (financial) sharks who prey on the naive and gullible. (If you'd like some suggestions in this second area, please help yourself to my FREE ebook 26 Books to Take YOU All the Way to the TOP! It's been written to help you embark upon your very own five-year mission of discovery through a self-study programme in personal finance, economics and investing.)
Doing so will allow you learn more about sound savings and investment options.
Second, begin to save some of your money in different fixed deposits (FDs) or certificates of deposit (CDs). Start small and opt for short tenures to begin with so that you get encouraged by the inflow of passive income into your main bank account intermittently throughout the year.
This will help you develop an appreciation for passive income.
Third, over the next few years, expand your sources of active income by considering starting side businesses (as long as these don't compromise your position with your primary employer), and multiply your sources of passive income by saving and investing your money in income generating instruments like bank accounts, money market funds, bond funds, equity funds, dividend yielding stocks, real estate investment trusts, and even rental property.
Putting each little 'brick' in place will take patience and a relatively rare willingness to give up consumption today to create a fresh, potentially perpetual income stream tomorrow.
If you are able to stick to your programme over the next decade or two you will wake up one morning to the wonderful realisation that your passive income sources are bringing in a deluge of money that exceeds your active income source, and which outstrips your personal and your family's cash requirements.
The day that happens will be the day you achieve true financial freedom.
Now only one thing remains for you to act on. Ask yourself if that distant goal is worth exerting yourself for. If you remain unsure, think back to what Carnegie alluded to:
The trickle or stream or gusher of cash you create through intelligent saving and investing may be used to not only improve your life and your loved ones' but also those of future generations.
So, ask yourself: Could leaving such a legacy be your highest calling or destiny?
In closing, if you are based in Malaysia, if what you've just read makes sense to you, if you are an English-speaking professional or business owner aged between 30 and 50, and if you genuinely believe you might benefit from my consulting services in the realm of financial planning and retirement planning, you're welcome to learn more about me here.
© Rajen Devadason
Sunday, September 28, 2008
Intelligent Borrower or Economic Slave?
Is it possible to live in our 21st century and stay out of debt? Most people would say no. Yet, there are those who are debt-free.
But even then, is it desirable to totally eschew or abstain from debt when it seems as though the global retail economy is powered by rising levels of consumer borrowing?
To answer that question intelligently, the first thing you should do before you read anymore is ask yourself whether you believe debt is a curse or a blessing. Well?
I've found a large part of my work as a licensed financial planner, consultant and professional speaker revolves around urging people to extricate themselves from the clutches of clinging debt!
Because of that, many people assume I believe all debt is bad... even downright wicked. Yet, nothing could be further from the truth.
In all fairness, though, I'm sure the title of one of my books, Liberty! From Debt-Slave to Money Master, helped entrench that 'Rajen-thinks-all-debt-is-bad' perception among many who've heard of that book but have never read it.The truth is few things in life are correctly viewed in monochrome! And debt isn't one of them.
Most of life involves the full spectrum of colour and hue. That includes the emotive subject of debt.Just like fire, debt can be a great friend if properly harnessed. But, also like fire, it can scar you for life or even permanently snuff out your breath if it is permitted to rage out of control.
Liberty! teaches - in stories involving three young men - principles and strategies that work well for those who want to get out from under the sometimes overwhelming burden of consumer debt.
In most countries, typical consumer loans are taken on for years at a stretch to buy items that go down in value, sometimes precipitously during just the course of the outstanding loan!
In most cases, for most people, I believe too much consumer debt is indicative of a well-entrenched inability to exercise one of the key criteria for long-term success, a commitment to delayed gratification - the willingness to give up something good today in anticipation of something far better tomorrow.
Embracing a philosophy of delayed gratification is, at least in my opinion, indicative of a person of superior emotional intelligence.
Mature people can exercise delayed gratification with regard to consumer items. Immature people can't, won't or simply don't!
The dividing line often has little to do with chronological age.Yet I believe there is one type of debt that - under the right circumstances - can be productive.
It is viable business debt, although even here intelligent restraint should be used! In this instance, money may be borrowed, say at 10%, to engage in productive economic activities that yield perhaps 30%, 40% or more.The ability to do this again and again leads to burgeoning, upward spiraling profits, which are the cornerstone of sound, vibrant capitalism and the goal of all self-respecting capitalists.
Still, let the record show that I vehemently disagree with the oily character Gordon Gekko played by Michael Douglas in the iconic 1980s movie Wall Street. In it, Gekko declared, "... greed, for lack of a better word, is good. Greed is right. Greed works."Not to my mind. Not now, not ever!
I believe unadulterated greed is cancerously evil. But a healthy desire for profits, as long as they are achieved by ethical business practices devoid of gouging others, are not merely good, but wonderful.
After all, the fair exchange of useful goods and services for money is the cornerstone of a healthy economy. For instance, a simple, personal example where I exchange an understanding of the principles of sound time management for money is found at this page which features another of my books, this one entitled Unshackled.
Our entire way of modern life is centred upon the benefits of profits earned honestly.
Bernard Baruch described it best, I think, when he wrote, "Society can progress only if men's labour show a profit - if they yield more than is put in. To produce at a loss must leave less for all to share."If you believe Baruch's statement, and I believe it is wise to do so, then for your own sake make it a point to sit down tonight - there's nothing like striking while the iron is hot - to figure out how much you owe and to whom. Do all this figuring on a large sheet of paper.
As you do so, identify which financial debts are productive, good business-type ones, and which ones are the more common destructive, consumption-type that only make financial institutions richer at your expense!
Then embark upon a focused programme of debt-eradication within the second group.For this part of the exercise, here's what I suggest:
1. List all your debts on another, fresh sheet of paper;
2. Then decide whether you want to adopt one of two great strategies:
a) Paying off your debts in order of the most expensive ones (meaning those with the highest interest rates) first ; OR
b) Paying them off in order of the smallest ones first.The first strategy (2a) is mathematically more efficient, but I have found the second (2b) more emotionally satisfying.
Use the first if you're super-disciplined. Use the second if you're like most of us mere mortals and in need of quick reinforcement through positive feedback!
In closing, I wish you all the best in crushing the monster of excessive consumer debt and thus rescuing your future income streams from being devoured by this implacable foe.
FOR SERIOUS READERS: If you wish to consider this matter more deeply, you'll find these additional articles helpful:
Escaping Debt Slavery
Credit Cards – Friends or Foes?
But even then, is it desirable to totally eschew or abstain from debt when it seems as though the global retail economy is powered by rising levels of consumer borrowing?
To answer that question intelligently, the first thing you should do before you read anymore is ask yourself whether you believe debt is a curse or a blessing. Well?
I've found a large part of my work as a licensed financial planner, consultant and professional speaker revolves around urging people to extricate themselves from the clutches of clinging debt!
Because of that, many people assume I believe all debt is bad... even downright wicked. Yet, nothing could be further from the truth.
In all fairness, though, I'm sure the title of one of my books, Liberty! From Debt-Slave to Money Master, helped entrench that 'Rajen-thinks-all-debt-is-bad' perception among many who've heard of that book but have never read it.The truth is few things in life are correctly viewed in monochrome! And debt isn't one of them.
Most of life involves the full spectrum of colour and hue. That includes the emotive subject of debt.Just like fire, debt can be a great friend if properly harnessed. But, also like fire, it can scar you for life or even permanently snuff out your breath if it is permitted to rage out of control.
Liberty! teaches - in stories involving three young men - principles and strategies that work well for those who want to get out from under the sometimes overwhelming burden of consumer debt.
In most countries, typical consumer loans are taken on for years at a stretch to buy items that go down in value, sometimes precipitously during just the course of the outstanding loan!
In most cases, for most people, I believe too much consumer debt is indicative of a well-entrenched inability to exercise one of the key criteria for long-term success, a commitment to delayed gratification - the willingness to give up something good today in anticipation of something far better tomorrow.
Embracing a philosophy of delayed gratification is, at least in my opinion, indicative of a person of superior emotional intelligence.
Mature people can exercise delayed gratification with regard to consumer items. Immature people can't, won't or simply don't!
The dividing line often has little to do with chronological age.Yet I believe there is one type of debt that - under the right circumstances - can be productive.
It is viable business debt, although even here intelligent restraint should be used! In this instance, money may be borrowed, say at 10%, to engage in productive economic activities that yield perhaps 30%, 40% or more.The ability to do this again and again leads to burgeoning, upward spiraling profits, which are the cornerstone of sound, vibrant capitalism and the goal of all self-respecting capitalists.
Still, let the record show that I vehemently disagree with the oily character Gordon Gekko played by Michael Douglas in the iconic 1980s movie Wall Street. In it, Gekko declared, "... greed, for lack of a better word, is good. Greed is right. Greed works."Not to my mind. Not now, not ever!
I believe unadulterated greed is cancerously evil. But a healthy desire for profits, as long as they are achieved by ethical business practices devoid of gouging others, are not merely good, but wonderful.
After all, the fair exchange of useful goods and services for money is the cornerstone of a healthy economy. For instance, a simple, personal example where I exchange an understanding of the principles of sound time management for money is found at this page which features another of my books, this one entitled Unshackled.
Our entire way of modern life is centred upon the benefits of profits earned honestly.
Bernard Baruch described it best, I think, when he wrote, "Society can progress only if men's labour show a profit - if they yield more than is put in. To produce at a loss must leave less for all to share."If you believe Baruch's statement, and I believe it is wise to do so, then for your own sake make it a point to sit down tonight - there's nothing like striking while the iron is hot - to figure out how much you owe and to whom. Do all this figuring on a large sheet of paper.
As you do so, identify which financial debts are productive, good business-type ones, and which ones are the more common destructive, consumption-type that only make financial institutions richer at your expense!
Then embark upon a focused programme of debt-eradication within the second group.For this part of the exercise, here's what I suggest:
1. List all your debts on another, fresh sheet of paper;
2. Then decide whether you want to adopt one of two great strategies:
a) Paying off your debts in order of the most expensive ones (meaning those with the highest interest rates) first ; OR
b) Paying them off in order of the smallest ones first.The first strategy (2a) is mathematically more efficient, but I have found the second (2b) more emotionally satisfying.
Use the first if you're super-disciplined. Use the second if you're like most of us mere mortals and in need of quick reinforcement through positive feedback!
In closing, I wish you all the best in crushing the monster of excessive consumer debt and thus rescuing your future income streams from being devoured by this implacable foe.
FOR SERIOUS READERS: If you wish to consider this matter more deeply, you'll find these additional articles helpful:
Escaping Debt Slavery
Credit Cards – Friends or Foes?
Sunday, September 21, 2008
Hiring a Financial Advisor
When hiring a financial advisor you dont want to simply hire someone who looks like they know what they are doing, but rather a financial advisor that knows what they are doing and has proof. You will need to ask your potential financial advisor several questions in order to get a real feel of whether this financial advisor is skilled or has no clue how to advise you on money matters. You will be able to find a financial advisor who is going to really help you with your finances by simply asking the following questions.
First of all, you want to ask the potential financial advisor what kind of education he/she has. This is important because a quality financial planner will have educating supporting this field of work, as well as credentials, continuing education certificates and the like. You will also want to ask what kind of experience the individual has as a financial advisor and how long the individual has been working as a financial advisor. This information will enlighten you as to the type of financial planner you are considering hiring.
Another question that should be offered to the potential financial advisor is how they receive payment. Does this particular financial advisor charge an hourly rate, work only on commission, or have some other fee schedule?
You will need to know up front how the financial planner plans on billing you before you agree to let them advise you on your finances.
Asking the financial advisor for referrals, especially past clients, is a great way to know if the financial advisor is for real and has been successful with other clients. If the financial advisor does not have any referrals, you might be skeptical about this particular financial advisor.
Finally, ask the financial advisor to give you an outline of what will be covered and how he/she can help you reach your financial goals. An experienced financial advisor will be able to tell you several topics he/she will want to cover with you.
Source: Free Articles
First of all, you want to ask the potential financial advisor what kind of education he/she has. This is important because a quality financial planner will have educating supporting this field of work, as well as credentials, continuing education certificates and the like. You will also want to ask what kind of experience the individual has as a financial advisor and how long the individual has been working as a financial advisor. This information will enlighten you as to the type of financial planner you are considering hiring.
Another question that should be offered to the potential financial advisor is how they receive payment. Does this particular financial advisor charge an hourly rate, work only on commission, or have some other fee schedule?
You will need to know up front how the financial planner plans on billing you before you agree to let them advise you on your finances.
Asking the financial advisor for referrals, especially past clients, is a great way to know if the financial advisor is for real and has been successful with other clients. If the financial advisor does not have any referrals, you might be skeptical about this particular financial advisor.
Finally, ask the financial advisor to give you an outline of what will be covered and how he/she can help you reach your financial goals. An experienced financial advisor will be able to tell you several topics he/she will want to cover with you.
Source: Free Articles
Wednesday, September 17, 2008
Does Your Business Card Work For You?
Submitted by sverdlow
Take a look at a typical business card and the similarities leap out so strikingly that they all seem to be following the same rules. Of course you have your name on there, and your business name.
Same for your address and contact information: phone, cell, fax, and email. But so does everyone else. In fact, for the majority of business cards, the only discernable difference is the company logo. Blogger and public speaker Ethan Demme had a unique take on the modern business card. "Rounded edges," he points out with pride. His logic is that after a conference, when an attendee is thumbing through their stack of recently acquired deck of business cards, the break will naturally land on his. But he didn't stop there. Ethan borrowed heavily from one of his primary marketing tools: Facebook.
He copied not only the color scheme of the popular social networking site, but also the font and general spacing. At first glance, Ethan's business card looks a great deal like a cropped and rounded version of his social networking profile. The look, like the rounded corners, was done with a purpose. Ethan's clients and prospects frequently use Facebook, and visually associating himself with the site helps to create a connection long after Ethan has finished his pitch and flown to the next convention.
Ethan is not alone in his quest to make the business card more effective through creativity, nor is he the most adventurous. Reflections Dental Care has an impression of teeth on their cards. Matilda Jane, a boutique clothing company, has a floral print on their card with a red zig-zagging string stitched in. NGAP, the National Greyhound Adoption Program, opted for dog tags, complete with beaded chain loop. While these designs might seem extreme (and in all likelihood not very wallet-friendly), they represent a very important function of the modern business card – break the mold with something truly memorable that represents you and your business.
After all, your business card is a marketing tool and it should be selling your business.
Drilling down a little bit, what do you have on your business card? The usual contact stats? Ethan, obviously, has his Facebook contact information. Do you twitter? MySpace?
What about the website that you've worked so hard on? Much like the appearance of your business card, the content should also be representative of your business. What's more, your contact details should say how you want to interact with your clients - online, on the phone, or in person. Though it's a bit harder to accomplish than the physical design, the actual copy on your card should be unique and representative, effectively transforming your business card to fit your own personal requirements.
All of this creativity is for naught if your business cards stay in a box next to your desk. Much like the design and content of your business card, leveraging your cards creatively can pay dividends.
In fact, this is one area where your business card can still trump your website. After all, your website is bound to a computer screen, but your business card exists in the real world, where your customers are. DUI attorney Steven Breit puts his business cards exactly where his clients will find them - in bars. Granted, his business cards break from tradition, they're not cards at all, but rather matchbooks and coasters, but they perform all of the same functions as a business card.
It doesn't take much time or effort to toss a copy of your business card in with a mail order, but if you want your customer to keep the card, putting a coupon on the back side for future orders, or even a promo code, can help spur repeat business. And then there is the business-card-as-magnet. This novel approach has been used by people ranging from local shops to American Express - and the results are rather striking.
Suddenly the business card you so frequently hand out leaves the Rolodex and winds up on a fridge where the client, their family, and their guests see it on a daily basis. The rule of thumb should be making your business card valuable to your customer, and then placing that valuable item where it's likely to be seen.
Take a look at your business card again. How unique is it? How well does it represent your business?
Are you using your business card as a marketing tool, or merely a formality tacked on to either end of a business activity?
The logic of the business card is a sound one - a means of communicating information about your business - but the concept of the business card is entering a new age:
an age of individual empowerment.
After all, the business card is a pitch that your customer can walk away with, a handshake that they can put in a wallet, pocket, or purse.
Do yourself a favor, and put your business card to work; don't let it simply be an afterthought.
Take a look at a typical business card and the similarities leap out so strikingly that they all seem to be following the same rules. Of course you have your name on there, and your business name.
Same for your address and contact information: phone, cell, fax, and email. But so does everyone else. In fact, for the majority of business cards, the only discernable difference is the company logo. Blogger and public speaker Ethan Demme had a unique take on the modern business card. "Rounded edges," he points out with pride. His logic is that after a conference, when an attendee is thumbing through their stack of recently acquired deck of business cards, the break will naturally land on his. But he didn't stop there. Ethan borrowed heavily from one of his primary marketing tools: Facebook.
He copied not only the color scheme of the popular social networking site, but also the font and general spacing. At first glance, Ethan's business card looks a great deal like a cropped and rounded version of his social networking profile. The look, like the rounded corners, was done with a purpose. Ethan's clients and prospects frequently use Facebook, and visually associating himself with the site helps to create a connection long after Ethan has finished his pitch and flown to the next convention.
Ethan is not alone in his quest to make the business card more effective through creativity, nor is he the most adventurous. Reflections Dental Care has an impression of teeth on their cards. Matilda Jane, a boutique clothing company, has a floral print on their card with a red zig-zagging string stitched in. NGAP, the National Greyhound Adoption Program, opted for dog tags, complete with beaded chain loop. While these designs might seem extreme (and in all likelihood not very wallet-friendly), they represent a very important function of the modern business card – break the mold with something truly memorable that represents you and your business.
After all, your business card is a marketing tool and it should be selling your business.
Drilling down a little bit, what do you have on your business card? The usual contact stats? Ethan, obviously, has his Facebook contact information. Do you twitter? MySpace?
What about the website that you've worked so hard on? Much like the appearance of your business card, the content should also be representative of your business. What's more, your contact details should say how you want to interact with your clients - online, on the phone, or in person. Though it's a bit harder to accomplish than the physical design, the actual copy on your card should be unique and representative, effectively transforming your business card to fit your own personal requirements.
All of this creativity is for naught if your business cards stay in a box next to your desk. Much like the design and content of your business card, leveraging your cards creatively can pay dividends.
In fact, this is one area where your business card can still trump your website. After all, your website is bound to a computer screen, but your business card exists in the real world, where your customers are. DUI attorney Steven Breit puts his business cards exactly where his clients will find them - in bars. Granted, his business cards break from tradition, they're not cards at all, but rather matchbooks and coasters, but they perform all of the same functions as a business card.
It doesn't take much time or effort to toss a copy of your business card in with a mail order, but if you want your customer to keep the card, putting a coupon on the back side for future orders, or even a promo code, can help spur repeat business. And then there is the business-card-as-magnet. This novel approach has been used by people ranging from local shops to American Express - and the results are rather striking.
Suddenly the business card you so frequently hand out leaves the Rolodex and winds up on a fridge where the client, their family, and their guests see it on a daily basis. The rule of thumb should be making your business card valuable to your customer, and then placing that valuable item where it's likely to be seen.
Take a look at your business card again. How unique is it? How well does it represent your business?
Are you using your business card as a marketing tool, or merely a formality tacked on to either end of a business activity?
The logic of the business card is a sound one - a means of communicating information about your business - but the concept of the business card is entering a new age:
an age of individual empowerment.
After all, the business card is a pitch that your customer can walk away with, a handshake that they can put in a wallet, pocket, or purse.
Do yourself a favor, and put your business card to work; don't let it simply be an afterthought.
 | Business Cards "You only get one chance to make a great first impression, so make the most of it with high-quality, full-color premium business cards. Design and customize your own business cards with your logo or photo, or choose from our wide array of templates tailored to your industry. And, if you?re searching for a sleek, professional look, you can customize your business cards by selecting a matte or glossy finish, foil-accents and more. Get an electronic business card as well, and jazz up your email signature. Like all VistaPrint products, you can create your business cards in minutes and receive them in as few as 3 days." |
Monday, September 15, 2008
3 financial resolutions, and how to keep them.
Three Financial Resolutions You Can’t Afford Not to Make This Year
And how to actually keep them
By Steven B. Smith
Every January, millions of Americans determine to shed a few pounds and to finally get their finances in order. Unfortunately, most estimates indicate that less than 30 percent of those well-intentioned resolutions make it through the year. The reason most resolutions fail is because a plan is never laid out to help achieve the goal. If you are serious about finally getting your finances in order this year, here are the three resolutions you need to make, along with easy steps to help you actually keep them.
1. Automate your finances.
Why it’s important: If it’s not easy, most of us will quit before the New Year is a month old. The key to effectively managing your money is tracking where it’s going, and how much money you have allocated for specific categories. Paper and pen will do the trick, but be honest with yourself, do you plan on keeping that paper and pen with you for the next year, logging each and every purchase no matter how large or small? The Internet allows you to track all your accounts with no manual effort, and will even do all the math for you. If it’s automatic, you won’t get lazy, and you won’t forget to do it either.
Managing your finances online may also help keep your money safe. According to a 2005 study on identity theft by the Better Business Bureau and Javelin Strategy and Research, “electronic monitoring provides greater safety by sharply reducing time to detection, and potentially eliminates the paper records and mail that are possible avenues to many identity theft cases.”
How to keep your resolution: Set up a secure online budgeting system like Mvelopes Personal (http://www.jdoqocy.com/click-2719775-10410526?url=http%3A%2F%2Fwww.mvelopes.com%2Fbudgeting%2Fbudgeting4.php%3FaccessCode%3DD003001001). The subscription service will automatically track your expenses from multiple accounts and credit cards as well as provide you with balances of various savings and spending categories. Seeing where you are spending your money will let you know where you can cut back. Seeing your net worth rise in the net worth tracking feature will keep you motivated. With a 30-day free trial, if you do give up by February, you can simply call and cancel.
Set up automatic transfers with your bank to pay your mortgage and other fixed payments to avoid missing a payment or incurring late fees. Use online bill pay to save on envelopes, stamps, and time (Mvelopes Personal includes a free bill pay service, and most banks now offer bill pay for little or no extra). Set up an automatic transfer to a savings or money market account once a month. Find a high interest bearing account to maximize your savings. Many online banks, such as EmigrantDirect, are currently offering three to four percent APY on savings accounts.
2. Stop paying interest and start earning it.
Why it’s important: According to Bankrate.com, if you charge $1,000 on your credit card, and pay only the minimum payment (assuming an interest rate of 15 percent and a 2.5 percent minimum payment), it will take over 10 years to pay off and cost an additional $757.98 in interest. Conversely, if you were to take only the amount you would be paying in interest each month on that loan and invest it in an account earning ten percent, it would grow to $1,594.92 over that 10 years.
Even if you’ve gotten deep into credit card debt and can’t pay it off quickly, you can save a bundle by lowering your rate, and paying more than the minimum. By dropping the interest rate on your credit card in the example above to 11 percent and paying only $30 a month, you could pay off that $1,000 in just over three years with only $198.85 in interest.
How to keep your resolution: Always pay at least the minimum payment on time, and if at all possible, pay your credit card balance in full each month. Mvelopes Personal has a credit card tracking feature that automatically sets aside the exact purchase amount each time a purchase is made on your credit card to help you pay off the balance in full each month.
If you are carrying a balance from month to month, cut your spending to a minimum and allocate all the extra money you can to paying off your debt. Use the debt roll down principle to quickly reduce your debt. Make a list of all your consumer debts and prioritize them in order of interest (highest to lowest). Pay the minimum on all your debts and pay as much as you can on the one with the highest rate. Once your first debt is paid off, roll that payment amount into the next debt on your list.
Call your credit card issuer and try to negotiate a lower rate. If they decline, let them know you plan to roll your balance to another card and cancel the card with the higher rate. If your credit history is clean, you should be able to find a card with a 0 percent introductory APR. Don’t make any purchases on the new card as often the introductory period ends as soon as you make your first purchase. Be careful the interest rate doesn’t skyrocket after the introductory period, and make sure you cancel the card with the higher rate to avoid simply running up a larger debt load.
Check your credit reports to make sure they’re accurate. The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months.
3. Stop procrastinating saving for your retirement.
Why it’s important: Time can be your biggest ally when investing for retirement. For example, if you begin at age 25 and invest $4,000 annually in a portfolio that provides a 10 percent average annual return, then stop contributing after 10 years, your investment will grow to $1,365,818.31 by the time you retire at 65. However, if you procrastinate investing until you are 35, then contribute $4,000 annually in a portfolio with the same 10 percent average annual return, and continue to contribute every year for 30 years until retiring at 65, your investment will only grow to $759,775.11. Even though you contributed $80,000 more over the life of the investment in the second scenario, you still ended up with $600,000 less.
How to keep your resolution: Contribute at least enough to your 401(k) to get the maximum company match. Talk to your HR department to find out the details of your company’s plan. If your employer offers a company match and you are not contributing to your plan, you are essentially turning down a bonus every year. And since your contributions are taken out on a pre-tax basis, as you increase your contribution, your taxable income decreases, meaning you pay less in taxes.
Open a Roth IRA. Your money grows tax-deferred, and just so long as the IRA has been open 5 years or more and you are at least 59 ½ when you start to withdraw, there are no tax penalties for withdrawal. The maximum annual contribution increases to $4,500 this year.
Make sure that no more than five percent of your portfolio for either your 401(k) or your Roth IRA is in a single stock. Diversifying is the best way to ensure maximum growth over time while minimizing the risk and volatility of the market. Select an index fund or target fund for an easy option that requires little oversight. Fidelity, Vanguard and T. Row Price are among the largest purveyors of mutual funds and all offer excellent funds for a variety of investing styles.
From start to finish. Regardless of where you stand financially, the New Year provides an excellent opportunity to review your finances and make improvements. Make sure that this year you don’t just start fresh, but that you also finish strong.
Steven B. Smith is president and CEO of In2M Corporation
Friday, September 12, 2008
Tax Elimination, Wealth Strategies and Your Children
Tax elimination is my favorite type of tax planning because it permanently reduces taxes. A lot of tax planning is focused on just temporarily reducing taxes, this means you pay less tax today but will pay more in the future. In other words, the tax is just being deferred. Tax deferral has its place in a tax strategy but first I like to look for ways to eliminate tax and create permanent tax savings.
- How to Create Wealth with Tax Elimination Strategies
-Even greater than the tax savings from eliminating taxes - which are substantial
- is the potential of what to do with those tax savings. Tax savings and wealth creation are two powerful tools that create amazing synergy when used together. Whenever I do wealth coaching with a client, one of the first steps is to create their tax strategy because the tax savings work to supercharge their wealth creation.
- More Tax Elimination Strategies
-Here is my C Corporation tax elimination tip in case you missed it:Use a C Corporation's initial tax brackets of 15% and 25%. If you are in an individual tax bracket of 25% or higher, then there could be an opportunity to eliminate taxes by shifting some of your income to a C Corporation.What makes this strategy work is the shifting of income to a taxpayer (your C Corporation) in a lower tax bracket than you. What other taxpayers do you have in your tax strategy that are in lower tax brackets?
Here is one: Your Children!- Get Your Children in the Game -Of course, the IRS has special tax rules for children age 18 or younger (and in some cases age 23 or younger) but understanding these rules can provide opportunity to legally reduce your taxes.These special rules tax unearned income received by your children at your tax rate. This means interest, dividends and other types of unearned income are taxed at the same rate as if you received them personally. In other words, no lower tax rate is available on this type of income.
However, these special tax rules do NOT apply to earned income. This means your children's earned income is taxed at your children's tax rates.What is so exciting about using your children's tax rates is that they can be even better than C Corporation tax rates!
Your children's tax rates start at 0%!
What Can Your Children Do For Your Business?
What tasks can your children do for your business?
Your answer to these questions will help you with your strategy to reduce your taxes.
Are you ready to use this tax elimination strategy to reduce your taxes?
- How to Create Wealth with Tax Elimination Strategies
-Even greater than the tax savings from eliminating taxes - which are substantial
- is the potential of what to do with those tax savings. Tax savings and wealth creation are two powerful tools that create amazing synergy when used together. Whenever I do wealth coaching with a client, one of the first steps is to create their tax strategy because the tax savings work to supercharge their wealth creation.
- More Tax Elimination Strategies
-Here is my C Corporation tax elimination tip in case you missed it:Use a C Corporation's initial tax brackets of 15% and 25%. If you are in an individual tax bracket of 25% or higher, then there could be an opportunity to eliminate taxes by shifting some of your income to a C Corporation.What makes this strategy work is the shifting of income to a taxpayer (your C Corporation) in a lower tax bracket than you. What other taxpayers do you have in your tax strategy that are in lower tax brackets?
Here is one: Your Children!- Get Your Children in the Game -Of course, the IRS has special tax rules for children age 18 or younger (and in some cases age 23 or younger) but understanding these rules can provide opportunity to legally reduce your taxes.These special rules tax unearned income received by your children at your tax rate. This means interest, dividends and other types of unearned income are taxed at the same rate as if you received them personally. In other words, no lower tax rate is available on this type of income.
However, these special tax rules do NOT apply to earned income. This means your children's earned income is taxed at your children's tax rates.What is so exciting about using your children's tax rates is that they can be even better than C Corporation tax rates!
Your children's tax rates start at 0%!
What Can Your Children Do For Your Business?
What tasks can your children do for your business?
Your answer to these questions will help you with your strategy to reduce your taxes.
Are you ready to use this tax elimination strategy to reduce your taxes?
Tuesday, September 9, 2008
Ledger book
I've gotten in the habit of filling in a ledger every expense that we do as a family.
Gas, Car Repairs, Groceries, Eat out, even business is recorded, household and monthly bills.
I've been able to see much more clearly where we spend too much and adjust accordingly.
For example, almost each month, the longest column is eating out, so that's where we have to cut down and I have to do better groceries and make better meals, because when the needed food items are not in the cupboards or in the fridge, it's very tempting to just eat out!
Now last month, we splurged in the household department, so accordingly, we made a commitment to not spend anymore in household until the new year.
Sunday, May 4, 2008
The High Cost of Low Prices
I saw a t.v. show last night about the Wal-Mart family that I found fascinating and I thought I'd share what I've learned with you.
Now this program is from 2005 although it aired again last night.The Wal-Mart family (the Waltons) are worth over 100 billion dollars.....too big of an amount for me to grasp my little mind around!!!!
They donated less than 1% of their earnings to charities while Bill Gates donated over 50% of his earnings!
They're making millions at the expense of poor workers from bangladesh, Honduras amongs a few places where the workers work 7 days per week, very long hours, for a ridiculously small pay!
Wal-Mart employees pay into a fund from their pay checks to help other employees from anywhere in need. In 2005, they've donated a total of $5,000,000.00
The Walton family pitched in a measly $6,000.00!
There's a Wal-Mart commercial proudly stating the fact that their products are made in the USA, hence providing valuable jobs for the US citizens when in actuality their products are made from extremely poorly paid workers around the world.
A lot of crime also seem to happen in Wal-Mart parking lots and no one seem to be watching their security cameras at the times.
In Chandler, Arizone, the citizens came together to stop a future Wal-Mart superstore from being built in their Inglewood neighborhood. They stopped the monster in its tracks.
This is just some of the info I collected while I was watching the program but I found this website that dwells more in debt at all the facts:http://www.1worldcommunication.org/Walmart.htm
Now this program is from 2005 although it aired again last night.The Wal-Mart family (the Waltons) are worth over 100 billion dollars.....too big of an amount for me to grasp my little mind around!!!!
They donated less than 1% of their earnings to charities while Bill Gates donated over 50% of his earnings!
They're making millions at the expense of poor workers from bangladesh, Honduras amongs a few places where the workers work 7 days per week, very long hours, for a ridiculously small pay!
Wal-Mart employees pay into a fund from their pay checks to help other employees from anywhere in need. In 2005, they've donated a total of $5,000,000.00
The Walton family pitched in a measly $6,000.00!
There's a Wal-Mart commercial proudly stating the fact that their products are made in the USA, hence providing valuable jobs for the US citizens when in actuality their products are made from extremely poorly paid workers around the world.
A lot of crime also seem to happen in Wal-Mart parking lots and no one seem to be watching their security cameras at the times.
In Chandler, Arizone, the citizens came together to stop a future Wal-Mart superstore from being built in their Inglewood neighborhood. They stopped the monster in its tracks.
This is just some of the info I collected while I was watching the program but I found this website that dwells more in debt at all the facts:http://www.1worldcommunication.org/Walmart.htm
Friday, May 2, 2008
Thursday, May 1, 2008
Getting out of Debt
Getting out of debt is one of the key elements to becoming financially fit.
In a society driven by financial excess, reaching this goal is increasingly
difficult but can be done with some determination and the right tools to
help you get there.
According to a survey conducted by Impulse Research Corporation, 59% of Americans
stated that they regularly maintain a household budget. This number is shocking
considering the average household debt in America has grown to $18,700, with
credit cards and auto loans combined. This ever-increasing debt load suggests
that American families continue to spend more than they make. Obviously, many
of the methods being used to manage household finances are not effective.
Despite these astounding debt levels, 41% of people still do not maintain
household budgets. The main reasons cited are:
- 57% say, “I have a good idea what I can afford, I don’t need
to keep a budget.” Statistics, however, show that many American families
spend as much as 10% more each month than they earn. This can often be
traced back to not knowing how much has been spent, and how much money
is left on
a daily basis. - 45% say that
budgeting is “too difficult,” “too
time consuming,” or “too
confusing.” Budgeting can be all of the above if you don’t
have the right tools or information. But with the right tools, budgeting – which
is really spending management – can be easy and far less time-consuming.
The key is using today’s technology to simplify the process,
not complicate it. - 23% say, “I
start budgeting, but loose momentum as the year goes on.” One
of the keys to successful spending management is consistency. By
using the right tools and putting a plan in place, you can consistently
spend
less than
you earn and quickly eliminate your debt. - 21% say, “It
is too hard to stick to a set budget with more than one person making
purchases and using the accounts.” Budgeting, or spending
management, can be difficult with multiple people spending from multiple
accounts, however, by using an envelope budgeting system, everyone
can be involved in
the creation of a spending plan, and everyone can see what money
is available to spend, how much is left, and how long it has to last.
Using an online application
like Mvelopes® Personal makes it even easier. Your household’s
spending plan can be accessed through a secure online connection
from any PC with Internet
access. You and your spouse can both see how much is left to spend
in each spending category and how long it has to last. No guess work
involved.
In order to eliminate debt, you must consistently spend
less than you make, not incur any new debt, and make payments towards reducing
your existing debt. To do this, you need a spending plan or a budget.
Maintaining a budget can be a daunting task- tracking purchases, manually
recording transactions, balancing
several different accounts, etc. The list goes on and on. In our near cashless
society, it’s harder than ever to keep track of every purchase. It doesn’t
have to be difficult though, by using advanced computer technology, it’s
easier than ever to create and maintain a spending plan that will help you
quickly eliminate your existing debt, and avoid incurring any new debt.
The best way to eliminate debt is using the Debt
Roll-Down Method partnered with your Envelope Budgeting System. The debt
roll-down principle works by determining the total monthly payment you
can make toward debt repayment. Each time you
pay off a debt, you add the payment for that debt to the monthly payment for
the next priority debt. This will accelerate the rate at which this debt is
paid. When the second debt is paid, you add the payment you have been making
on this debt to the monthly payment for the third priority debt. This process
is continued until all debt has been eliminated. The key is to continue making
the same aggregate debt payment each month. Following this debt elimination
principle can often assist you in eliminating all of your debt, including your
mortgage, in as few as seven to eight years.
There
are two ways to prioritize debt repayment: smallest outstanding balance to
largest outstanding
balance or highest interest rate to lowest interest rate. Because, in most
cases, you will eliminate your debt faster if you begin with the debt carrying
the highest interest rate, most financial advisors agree you should prioritize
your repayment based on the interest rate—highest to lowest.
Traditionally, many people managed their money by dividing
their cash into several paper envelopes. An envelope for food, entertainment,
utilities etc.
They then spend their money from these envelopes. They always knew how much
money they had left, and how long it had to last. Today the best way to create
and manage your Envelope Budgeting System is with the online
budgeting system Mvelopes Personal. Mvelopes Personal is a breakthrough in budgeting
and spending management that modernizes
this
same
envelope budgeting concept using advanced Internet technology.
You can quickly set up your rapid repayment plan by following these steps.
STEP 1: Create a list of all debt.
The first step is to create a list of all debt. This list should include the
name of the debt, the current outstanding balance, the planned monthly payment,
and the interest rate for each. Begin with the debt having the highest interest
rate and end with the debt having the lowest interest rate.
STEP 2: Check your monthly spending account allocations.
When you set up your monthly spending plan, you should create an envelope spending
account for each debt on your list. Each month, you will make your debt payments
from the spending accounts you have created. After you pay off the first
debt, you will need to make an adjustment by adding the monthly allocation
for that debt to the monthly allocation of the spending account for the next
priority debt.
For example, let’s say your debt with the highest interest
rate is a department store credit card. The amount of your monthly payment
for this
debt is $75, so the amount of income you allocate each month to the department
store
spending account for that debt is $75. Your next highest priority debt based
on interest rate is a credit card. For this debt, your monthly payment is
$125, so the amount of income you allocate to this credit card spending account
each
month is $125. After four months, you have paid off the department store
debt. When you complete your monthly adjustment, you will transfer any remaining
balance from the department store spending account to the credit card payment
envelope. You also will adjust the monthly income allocation for the credit
card spending account by adding the $75 to the $125. You will now be making
a monthly payment of $200 on the credit card. This will be repeated each
time
a debt is paid off. Before long, you will have eliminated all of your consumer
debt and will be making much larger mortgage payments.
STEP 3: Accelerate your debt payment with monthly spending account transfers.
Once you have created your debt-elimination plan, you can begin to accelerate
your debt repayment by transferring savings from your spending accounts to
your debt repayment accounts. Many people have found they can save an additional
10% each month by using an envelope system. If you have a net monthly income
of $5,000, the additional amount you can save using the envelope system could
be as much as $500. Imagine how quickly you can eliminate your consumer debt
if you are adding 10 percent of your net monthly income to your debt payments.
For most people in America, a significant portion of their net monthly income
is dedicated to the payment of interest. Imagine how much money you can save
and invest if you are not paying interest. For most, this would represent several
thousand dollars each year. Invested properly, this additional money may make
a significant difference in the lifestyle you choose later in life. Using an
envelope system to successfully implement the debt roll-down principle will
help you accomplish this objective.
With Consumer debt at an all time high, it’s no wonder more and more
people are looking for help with personal financial management, debt reduction
and spending management. And given the substantial debt carried by the average
family, it’s not surprising that Financial Freedom is at the forefront
of the American mind – Among the top New Year’s Resolutions for
2004 were increased savings, debt reduction, and increased investments.
- 63% resolve to
save more money in 2004 - 51% resolve to
pay off their debts - 23% resolve to
dedicate more money towards retirement
Following the steps outlined in the Debt Roll-Down method will
put you on the right path towards eliminating all of your consumer debt.
If you partner
this with your envelope budgeting system like Mvelopes
Personal, you too can
reach financial fitness – regardless
of your income level. The amount of money that you earn isn’t what matters,
its how you spend the money that you do earn. You simply have to spend less
than you make on a consistent basis.
Personal Finance
Personal Finance Software is Money Magic
Does your money seem to pull a disappearing act each month? Does your credit
card statement continually leave you wondering when and how you could have spent
that much? What about that cash you took out from the ATM the other day " could
you possibly have spent it already?
Let's face it. Managing your personal finances can be a difficult task " especially
when on a tight budget. Every time you turn around, there's another bill
to pay, and before you know it, your entire paycheck has been spent " and
then some! Soon, you find yourself drowning in the financial demands of everyday
life, and the vicious cycle of living paycheck to paycheck " or worse
yet, living on credit " has begun. You ask yourself, "How did this
happen to me?"
If you are finding it increasingly difficult to juggle the many different
financial aspects of your life, you are not alone. The fact is, in today's
modern society, the average consumer is forced to allocate the money from one
stream of income to more than 30 different sources! From mortgage payments
and health insurance to childcare services and credit cards, it's no
wonder money appears to continually vanish before our eyes. But what if there
was a way of reducing the invisibility of your spending? A way of budgeting
yourself in a simple, pain-free manner and achieving that so-called state of "financial
freedom" once and for all? Thankfully, where there is a will, there is
a way.
I found a great personal finance software program called Mvelopes Personal.
Mvelopes Personal is the new affordable and easy-to use online budgeting system
sweeping the world of personal finance, is the answer to all your budgeting
woes. Mvelopes' unique budgeting concept offers a straightforward method
to reining in your finances, enabling you to spend less and spend more efficiently
while still enjoying what matters most to you in life.
Gone are the days of discovering how much you have spent after it's
too late to do anything about it. Instead, Mvelopes enables you to take control
of your finances now by tracking the current balances within each of your designated
financial software envelopes as you are doing the spending. In this manner,
at the click of a button you will know exactly how many of your allocated dollars
have been spent from each of your envelopes, thus leaving yourself better equipped
to avoid going over your limit.
This real-time money tracking is made possible through a transaction download
service, which is just one component of the Mvelopes Personal Budgeting system.
Add to that the optional bill pay service, the financial portfolio management
service and the outstanding free budget coaching all included in the package
as well, and the result is your number one source for assistance in managing
your personal budget.
Isn't it about time YOU took control of your finances and embarked upon
the path towards financial freedom?
To learn more about how Mvelopes can help you to start making better spending
decisions, or to sign on right away for your one month free trial offer, visit
the Mvelopes homepage at http://www.anrdoezrs.net/click-2719775-10299164?url=http%3A%2F%2Fwww.mvelopes.com%2Fmoney_management%2Fpersonal2.php%3FaccessCode%3DD003001001
By Kristen N. Carpenter
Kristen has a keen interest in personal budgeting and finance and is a marketing
communications specialist.
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