In the wake of the worst recession since the Great Depression, budgeting, and reduced spending has been at the forefront of many people’s minds. It is, however, important to create an allocation for a splurge once in a while. Maybe a gourmet meal or a manicure, or bring your lunch to work Monday through Thursday and celebrate this financial triumph on Friday by eating one lunch out. If you constantly deprive yourself, chances are your natural reaction will be to go out and spend any way, it’s just human nature. Planning to spend (and doing so wisely) to reward your hard work will create positive incentives for future financial success!
Tags: budgeting, financial success, positive outcomes, recession, reduced spending
Many people suffer because they have self limiting thoughts and behaviors. If you happen to be looking for a new job it can feel impossible right now. But it’s truly not. There are some steps you can take to change some of your limiting behaviors and get a great job even during this recession.
The biggest block people often have about their future possibilities is thinking that what they really want can’t or won’t happen. Thinking that what they want is too big, too much or just not possible; that there aren’t jobs. Or, thinking they don’t have what it takes, that they aren’t good enough. Right now with all the negative news about the recession it’s even easier to feel those ways and we can get stuck.
We get stuck and limit ourselves by thinking something isn’t possible, for whatever reason. Then without even realizing it, we don’t really try. We might think we are but we’re not really putting ourselves out there and not going for it.
The good news is that you can go from limiting your possibilities to having what you want. The first thing you have to do is open yourself up to possibilities. This is actually an ongoing practice. Before we will even let ourselves know what it is we want, we have to believe that maybe, just maybe, it’s possible.
Maybe that great job, the one that you really want is out there waiting for you to fill it. If you knew that, you’d have the positive attitude to go for it, to do what it takes and end up in that interview, ready and willing and excited. So, before you even start, don’t pre-judge. Let go of thinking about “how?” or “is it possible?” Don’t limit your options. If limiting thoughts come up be aware of them. It’s often just fear of the new and what we don’t know, or fear that what we want can’t happen so we don’t even find out.
Being open to what you really want is key in your success. Next you have to figure out what is is that you want. Not what you think you can have or what you think is possible, but knowing what you desire for you. Be specific about what kind of job you want. What does it pay, is it close to home, it is downtown, what kind of boss and co-workers, what do you value, what are you passionate about. What do you really want? Again, be open. Believe in the possibilities and in yourself. Think of the highest and best of what you want. Make it realistic and exciting.
When you really believe something is possible, and see that it is possible for you, that triggers your mind to find ways to make it happen… even if there is a recession. Know that. And, decide you are going to make it happen. You simply have to believe YOU CAN have what you want.
“Whether we think we can or think we can’t, we’re right” – Henry Ford
Tags: habits, jobs, recession, success, unemployment
If you have unpaid medical debt, this can, and will, affect your credit score, which may affect your ability to purchase a house or car. If you are suffering from piles of unpaid medical bills, there are some things you can do to help deal with your medical debt.
Make sure that first you thoroughly examine your medical bills. Review your current unpaid bills and determine which ones are immediate payments required. Check for any errors on your bill, such as for a test or procedure that never occurred, make sure you contact the billings department to remove that item from your bill.
Get yourself and family health insurance. Private health insurance will cover the majority of the procedures and tests during a hospital stay. Be aware that under certain plans, specific doctors and hospitals may be required in order for you to be covered. If you need to visit a doctor or hospital that is not under your plan, make sure you contact your insurance company prior to seeking assistance with these professionals to determine if you will need to pay out of pocket expenses.
If you qualify as low income you, and you cannot find a job, then you can always apply for Medicaid. Don’t hope for a national health care plan, use what is at your discretion now.
If you have unpaid medical bills not covered by health insurance, do your best to resolve them. Many hospitals have medical debt help programs to assist you in settling unpaid medical bills if you do not have health insurance. You may be able to reduce your expenses by 25% by enrolling in these hospital-based programs. Also, depending on your hospital or doctor’s office, you may be able to establish a payment plan where you pay a certain amount over a course of months in order to pay off your debt. Make sure that the amount of money that you set forth to pay each month is affordable and that you are not further setting yourself into debt. This way you can reduce your debt in a way that is appropriate for you.
Consider consolidating debts with a bank loan. This will be able to assist you in paying your unpaid medical bills. If your credit score is high, you may be even able to obtain a bank loan with a low interest rate or interest free for a certain period of time. The last choice is placing your bills on a credit card. Do not place your bills on a credit card if you are only going to deepen your debt, as this will ultimately negatively affect your credit score.
Government assistance may be available. Some hospitals are affiliated with city and state organizations to assist you with your unpaid medical bills. You may be able to receive information from your billing’s department to determine if you are eligible for government assisted funds. Eligibility is generally determined by amount of debt owed as well as your annual income.
Tags: credit score, government, health insurance, loan consolidation, medicaid, medical expenses, reduced interest rates
Many people feel that financial planning is a large complex process that costs a lot of money. The truth is that financial planning is any planning you do to grow or conserve your wealth. This can be anything from a decision to save, to a complex formal document that analyzes every aspect of your finances.
To develop a financial plan, start by writing down your goals. From there you can map out a plan for how to achieve those goals. Evaluate your current situation and research ways to get you from where you are now to where you want to be.
Some form of financial planning is critical to growing wealth, but too much planning and not enough doing can actually destroy your wealth.
A corporate executive with a six figure income, large net worth and a family who depends on them may want to consider paying a professional to do a comprehensive review of their financial situation. However, young people with little net worth and little income don’t need to pay thousands of dollars to put together a financial plan. For most of these people, the best financial plan they could ask for is to save more money. And paying someone $1,000 to tell them that is not a good way to start.
Plenty of financial advisers will write a very basic financial plan for free, hoping that you will purchase other services through them in exchange. If you have a bank account, you can speak to someone at the bank who may be able to put something simple together for you. If you have a small investment account with a broker, there’s a good chance the broker has the ability to help you develop a financial plan. There are also plenty of places on the internet with tools you can use for financial planning.
For most people, spending a lot of money for a financial planner to draw up a large document that you will never read is a waste of time and money.
It’s important to have a plan, but don’t spend all your time and money planning. Work on growing your income and cutting your costs so that you are able to save money and build your net worth. Once your assets are substantial and your financial plan becomes more complex, then you can consult a financial planner that can evaluate your situation and look for wholes in your financial plan.
Tags: financial planning, goals, income, internet, wasting, wealth
“What comes around goes around”, we’ve all heard the saying. So in terms of money, you have to “give” in order to “get”. If you don’t believe that giving to charity will in essence make you receive more money, at least consider the other reasons to donate some of your money to charity.
Helping others give you a sense of pride knowing that you have the means to let go of some of your wealth and still have enough money for your needs. Taking a look occasionally at all you have gives you more of a perspective on how fortunate you really are.
In addition to helping people in need, giving to charity can be a great way to obtain a tax deduction. Every year consider going through your attic or your basement and giving away old toys or clothes to a registered and qualified local or national charity such as the Salvation Army. It’s what the IRS calls a charitable donation, and donating something you no longer need or want is much better than simply tossing it in the trash.
Always take a picture of the things you donate in case you are asked to provide documentation. In addition always obtain a receipt from the charity itself in order to support the deduction on your tax return. If you are giving for the sake of the deduction, it is important to make certain that the charity you are donating to is legitimate and that you will receive a deduction for your donation – before you actually donate anything.
Being a part of something larger than you yourself can give you a kind of comfort or sense of belonging, and caring gets your mind off your own troubles, for awhile anyway. People who have spent time volunteering for a cause or have contributed money to a charity report that they get back in satisfaction and joy more than they ever expend in inconvenience or effort–what you get back is really immeasurable.
Tags: charity, donating money, giving, IRS, tax deductions
You can save a lot of money on your car expenses – thousands of dollars a year. The more cost-saving measures you adopt, the more money you’ll save.
Maintenance manuals for many cars suggest you should fill the tank with premium fuel. Often you can get away with a lower grade without hurting your engine or your performance. Check with a mechanic to see if you can downgrade; the savings of 10-20 cents per gallon can easily add up to $100 or more for the year.
There are several other things you can do with your car to save money that can add up to a hefty savings over the span of a year.
Properly inflate your tires – Check them once a month; otherwise, you’re wasting gasoline, risking a blowout and wearing them out more quickly. This simple move can help prevent an accident and provide you with better traction. It could also give you better gas mileage. Underinflated tires can cost you 1-2 miles per gallon.
Replace your air filter – A dirty air filter causes an improper fuel-to-air mixture, which ruins fuel efficiency. Replacing your dirty filter can improve mileage by as much as 10%, or 15 cents per gallon. It’s easy to replace your filter yourself. Buy it on sale at a discount auto-parts store rather than having a garage or dealer replace it. Replacement is simple, a 5-minute job. A good schedule for new air filters is every other oil change in a dusty climate; elsewhere at least once every 20,000 miles.
Don’t drive aggressively – Hard accelerations and aggressive driving can cost you as much as 33% of your efficiency on the highway and 5% in the city. That adds up to 7-49 cents per gallon. Keep it under 60 – Gas mileage suffers badly at speeds above 60 mph. Every 10 mph above 60 mph costs you an additional 10 cents per gallon.
Clean out your trunk – Those golf clubs you pack around every day (despite the fact there is snow on the ground) cost you. Every 100 pounds of extra weight costs you 1-2% fuel efficiency.
Check your gas cap – About 17% of vehicles have a gas cap that is either damaged, loose or missing the Car Care Council estimates. Without a proper cap the gas in your tank vaporizes, and so, too, does your money. (For more tips on turning your gas guzzler into a sipper, see Getting A Grip On The Cost Of Gas.)
Tags: auto, cutting expenses, saving money
With the status of the economy, you might be concerned about your finances and keeping more money in your pocket than ever before. Getting organized with your spending will help to get you going in the right direction.
Many people do not have a clear idea of what they spend their money on. The best way to track spending is to record all of your ATM withdrawals. Although it takes some initiative on your part to do this, it can keep you from being overdrawn and save you a headache in the long run. If you fail to track your withdrawals, you will not have a true picture of your financial situation.
When making purchases, use a shopping list and stick to it. Keep a running list in your kitchen. Add items to it as they are depleted. When it is time to go shopping, buy only those items on your list. You can save yourself a lot of money if you stay away from the impulsive items at the store. And don’t forget, never go to the grocery store on an empty stomach because you will spend considerably more money.
Paying with cash is by far the best way to manage your money, but if you must use a credit card, only use one. The more credit cards you actively use, the more bills you will need to pay and the more work for you to do. There is less of a chance for losing or overlooking bills resulting in late fees with one card. If at all possible, pay your monthly credit card bills in full every month to keep a handle on your finances.
If you come across something at a store you think you want and it is not a necessity, put it back on the shelf and go home and sleep on it. If after 24 hours you still want it, go back to the store and get it. Chances are you won’t want it badly enough the next day and likely not bad enough to make a special trip to buy it.
Get organized, get a grip on your spending, and you will be successful in keeping more money in your pocket.
Tags: credit cards, economy, financial success, late fees, organization, reduced spending
Children are increasingly falling victim to identity theft, and families are largely unaware their children have been offended. Children continue to be victimized for years until as a young adult, they are denied services when seeking credit to pay for college or a car loan, applying for a job, or trying to get a drivers’ license.
Most families fail to monitor their children’s credit records, to determine if they had been victimized. Consequently, thieves have access to a child’s identity for years, largely undeterred. Child identity theft threatens our children’s future.
If a child’s identity has been misused for years it can be a very difficult and complex task to sort through the mess to recover the child’s identity. In the meantime, the young adults are unable to get on with their life and in some cases, even have warrants issued for their arrest.
Parents should protect their children against identity theft. There are ways to avoid being victimized. First, monitor your child’s credit records and make sure they do not have a report building against them. Take advantage of the annual free credit report and monitor your child’s credit on an ongoing basis. If you have any concerns about your child being a potential victim, contact the credit monitoring agencies, and place a fraud alert on your child’s records.
If you receive credit card offers, telemarketing calls, or email marketing in your child’s name, this is a red flag to check their credit records. Be stingy about giving out your child’s social security number. Request that an alternative identifier be used or that only the last 4 digits be used. Also, shred any documentation with your child’s identifying information on it prior to disposing of it. Thieves steal trash to access information. If you have bank accounts in your child’s name, stop having the statements mailed to you; instead access these services online.
Studies show that children often fall victim to family members, so lock identifying information within your house. When buying gifts for children (especially over the internet), only use sites you can trust, and limit the information you provide. Do not put identifying information in your cell phone or on your computer. If you do have this information saved, be sure you use a wipe program prior to disposing of the computer, do not use file sharing services, follow safe computing practices, and use password protection to access your computer, email, and records.
Tags: children, consumer protection, credit report, credit. credit record, identity theft
Although real estate prices are the lowest they’ve been in years, don’t make the mistake of going shopping until you have the cash or you’ve secured financing. A lot of people do this which can sometimes backfire and lead to frustration and disappointment. A pre-approval letter from a lender carries a lot of weight, because it shows that the buyers are ready, willing, and most of all able. Don’t confuse getting pre-approved with getting pre-qualified, the latter carries little weight. A pre-qualified homebuyer has merely received from a lender an estimate of the size of the mortgage loan for which the homebuyer may qualify. None of the pre-qualified homebuyer’s finances have been verified and this can spell trouble at the closing table if the loan falls through.
If you happen to find a house that you really like, that fulfills all of your needs and THEN you set out to secure financing, in the meantime the house of your dreams is being shown to other potential buyers who just happen to already be pre-approved. What happens then, is while you’re trying to secure financing the pre-approved buyer has secured your dream home. This is precisely why it is a good practice that you come prepared with your financing in place. It will make you more effective and more confident during your buying process.
Tags: financing, homebuyers, pre-approval, real estate
Consolidation loans are designed to help people pay off bills and pay down debt. A consolidation loan can make sense, but never as a first step in resolving debt problems. There are some inherent problems that must be dealt with before a consolidation loan is advisable.
If a person is consolidating an unsecured loan, this means that he or she is exchanging unsecured debt for secured debt. Although consolidation loans are usually simple interest loans (interest calculated on an annual basis), the interest is often less than the cumulated finance charges of the debts that are being consolidated. These debts are usually based on compounded interest (interest on the interest that accumulates daily).
In addition, most consolidation loans offer lower monthly payments spread out over a longer period of time.
A consolidation loan can be a smart idea, if the person consolidating does not borrow more than what is actually needed to pay the outstanding bills.
For those who already have discipline problems, borrowing more than what is needed could easily become just one more way to splurge. Therefore, if a consumer does decide to consolidate, it is imperative that he or she not take on any more debt.
What tends to happen to most people who obtain consolidation loans is that they no longer receive large monthly bills from retailers and credit card companies. They then begin to feel like they don’t owe as much money as they did before and have a tendency to stop worrying once the supposed solution has been found. Therefore, they start to use one or two credit cards, and before long they owe several hundred (or thousand) dollars in addition to their consolidation loan.
Resist the urge to splurge. Unless the problems that created the need for a consolidation loan (usually overspending) are corrected, one should not consider obtaining a consolidation loan. Otherwise, a year or so later all the little bills will be back again, and when they are combined with the consolidation loan, the situation will be worse than it was before the consolidation loan.
No one should consider a consolidation loan until they have been living for six months on a budget that controls spending. During that six months, you should eliminate as much debt as possible. Read the rest of this entry »
Tags: budget, credit cards, debt consolidation loan, debt reduction, finance charges, interest, overspending
