Saving For Non-Emergencies
May 26, 2009 by admin · Leave a Comment
While most people can say that they have a savings budget for emergencies, it is often the non-emergencies that push our budget to the limit. You can never predict when your car will break down, or your laptop will go on the fritz. The last thing you want to do is reach for the credit card, but you need to have a plan in place to assist in saving for non-emergencies.
Not having this kind of savings is often why many people get into debt. What you need is a non-emergency fund. This can be used for those unlikely emergencies too, but its much more likely that your brakes will need replacing before your home burns down.
The first thing to do is anticipate how much you’ve been spending on these occurrences. Look back at your financial calendar or your banking statements to determine what you’ve spent. These will be things like vacations, car repairs, birthdays, annual property taxes or insurance premiums. Anything that is not monthly counts and should be counted in this list. Now put the amount you anticipate to be spending each month for the next year.
Some will be obvious to you, birthdays come on the same day every year, others like the car repairs won’t be. But you and I both know sooner or later the washing machine will break down, so its best to over anticipate than not anticipate at all.
Include this money in your monthly spending plan. For example, if your property taxes are due in April start putting aside a small amount of money starting at least four or five months before.
So when April comes around the expense is either completely covered or very close to it. Even setting aside the price of a cup of coffee every week can greatly help in case of the unforeseeable. Think you don’t have enough money to start saving for non-emergencies? How many times did you visit the drive-through or get a massage? Even small things add up and can be used to help you save for your future.
Cutting Expenses At Home
May 24, 2009 by admin · Leave a Comment
Some years ago I tried every method available to mankind to give up my smoking habit. I tried nicotine gum, patches, weaning myself down to a handful of cigarettes a day. In the end what worked was a determination to stop and to stop cold turkey. You might be best served to cut recurring household expenses the same way.
One of the best places to start is with recurring charges that may be attached to your credit cards. The various services that you never use and have paid more money on than you car to think about. Get rid of them!
At the risk of treading on a sacred cow for many families, consider your cable TV bill. Let be real, it is not worth paying for 63 movie channels and premium services to watch one move a month, is it? Cancel your subscriptions all at once and you will likely realize a savings of 30-40 bucks a month. The best part is after 24 hours of not having the access to the multitude of premium services, you will not miss them. I promise you wont.
The more ambitious person may include stopping swimming pool services. It really is not that hard to maintain a pool. And since you wont be glued to your couch watching premium movie channels you will need something to do.
You and your spouse could make somewhat of a game of these cost cutting procedures. No doubt she is spending money on something you don’t want or vice versa. Honey do you really need to spend $40.00 a month on your nails? You’re right darling, what do you say instead of playing golf Saturday morning , you mow the grass, I let the lawn service people go today
How To Effectively Use Day Planners
When I was a young man I was told in no specific terms and without my feelings being considered, “the worst pencil and paper is better than the best memory”. Tha got my attention then and I still believe in that principle now. Franklin Day Planners got their name from the famous Benjamin Franklin because he was an organized man who kept a small notebook where he used to list down all the things that he needs to accomplish. People who always have a lot of things to do should purchase one. However, buying a day planner does not mean you will turn from a completely disorganized mess into one systematic individual instantly. You still need to maximize the features of your planner. Here are some things that you need to know to effectively use a day planner.
· Go for the size that will suit you the best. If you are the type of person who carries a huge bag in which you can bring just about anything, then a large planner would probably be best for you so that it will not be lost inside your big bag. If you only carry a small bag or if you just do not want it to be too bulky, then a small planner would be fine.
· Use different colors to organize your planner. You can use categorize your activities into different topics such as “work,” “home,” health,” or “money.” It is up to you. And you can use a different color for each category.
· Choose a day planner that has different views such as a daily view, weekly view, or monthly view. If you have a lot of things to do everyday, daily view is a must. Monthly view is a must. A planner without a monthly view is not effective.
· Some planners have bookmarks to mark the page on the current date. But if your planner does not have a bookmark, you can make your own. Make sure that you attach it to your planner to keep it from falling.
· It is very important to list down all the things that you need to do in one day and set a deadline for each. Stick to the deadline. When you look back on the previous days, you will observe how much (or how little) you have accomplished and it will boost your confidence in doing things or it will encourage you to be more efficient next time.
Stop Paying Convenience Fees and Save Money
May 21, 2009 by admin · Leave a Comment
Seems like a smart idea right? Well consider this, years ago, you may remember, you may not depending on your age but I remember the little jingle that Landmark Bank in Florida used to get us all hyped up about their latest technology to give us quick easy access to OUR money. It was the ATM Machine and her name way Maryanne. I remember being sold on “convenience” and not having to pay any fees. Now, years later, there are ATM machines everywhere, all giving us quick electronic access to our money. All we have to be is willing to pay a $1 or $2 or $3 dollar “convenience” fee to get “convenient” access to our own money from anywhere.
We were a generation sold on the fact that these machines would save the banks money by reducing the “manual” staffing to process such requests at the bank. They would allow us twenty-four hour access to our money and it would save everyone money and time. It’s essentially the same bill of goods we were sold with cable television. Cable television was originally “marketed” as non-commercial television, providing uninterrupted programming and giving the public a much needed break from the advertising so prevalent on regular broadcast television. Do you remember when you could watch the great Muhammad Ali box on television without having to “pay-per-view?” For years we watched sporting events alone on any of the big three networks and didn’t pay to see the action. We just simply turned on the television and watched the action.
Now, we pay generously for cable television and are even more inundated with the marketing and advertising cable sought to eliminate and WE PAY FOR IT. But I digress…
It’s the same with all the convenience fees and additional charges we pay to “electronically” pay our bills, purchase services, and yes, access our own money. We continue to pay recurring fees to deposit money in the bank. We continue to pay fees to withdrawal money “conveniently” from the bank. Are you listening PayPal?
I don’t know about you but I have grown weary of all the fees and charges we pay for convenience and advancements in technology for it only to be manipulated and twisted into the very thing we essentially wanted to avoid.
Bankruptcy Alternatives to Consider
May 17, 2009 by admin · Leave a Comment
If you are having problems with money and are looking at bankruptcy alternatives then that is very wise. You should never immediately jump to bankruptcy as an option for financial troubles. Bankruptcy should be your last resort, not your first line of defense.
What then are your options? Before filing for bankruptcy, you should look at other methods of managing your debts, as outlined below.
Personal Budgeting
An excellent starting off point is how you manage your own finances. Take a close look at the money you spend and the money you have saved. Set realistic financial goals for yourself. You then need to create a budget for yourself that includes a plan to pay off (or pay down) your debts in a timely fashion.
Debt Consolidation
In some cases you may be able to borrow money from your financial institution in order to be eligible for a debt consolidation loan. This bankruptcy alternative might be smart for you to consider if you have the ability to borrow money and would be able to effectively reduce the amount of debt you have. Be aware that the consolidation loan would be unsecured though.
Credit Counseling
Another option is to seek out credit counseling. A qualified and reputable agency can help you come up with a debt management plan that is right for you. A debt management plan is a voluntary agreement between the creditors and yourself that is mediated by a credit counselor. The counselor can negotiate on your behalf in order to figure out a way to get the debts repaid.
Consumer Proposal
Another bankruptcy alternative is a consumer proposal. In this case you need to have money to make regular payments. A consumer proposal is similar to a debt management plan in that an arrangement for repayment or partial repayment is made. The difference is that a consumer proposal is much more than a voluntary agreement. Instead it is a legally binding procedure.