10 Tips To Improved Personal Budgeting

1) Clip coupons. This is the single most important rule of personal budgeting. Why? Simply because a few minutes spent clipping coupons could end up saving you multiple dollars in the checkout line.

2) Buy in bulk. If your favorite products are on sale, buying in bulk may cost you more at present but could end up saving you a lot in the future. Some good examples are items that do not have an expiration date, such as soap, shampoo, toiletries and other household items. Canned foods, which carry a long expiration date, are also ideal for buying in bulk.

3) Saving your change can be a great help in your quest for personal budgeting. You would be surprised how quickly change can add up and, even if it’s $50 or $100 per month, your coins can add up to some serious cash. Many people discard their coins or simply toss them around without thought, but saving them in a bowl or dish will help a great deal when it comes to personal budgeting.

4) Put a portion of each paycheck into a savings count each week or month. Whether it’s a few dollars or several hundred, always make sure that you are putting aside some amount of money into a savings account. If possible, deposit 10-20% from each paycheck.

5) Avoid impulse shopping. This type of buying is what ultimately leads to buyer’s remorse. In order to avoid it, think about what you want to shop for and make sure that you avoid any last minute additions unless they are absolutely necessary or you can afford them without being in a crunch.

6) Shop the sale racks. Everyone enjoys sprucing up their wardrobe now and then so, when it comes time to add a few new pieces of apparel, stop by the sale rack for big savings. There’s nothing wrong with keeping a few extra dollars in your pocket, which can be later be used for life’s little essentials.

7) Avoid using high-interest credit cards unless you can repay them within six months. Otherwise, you are more likely to get swallowed up with interest and end up paying for the original purchase several times over.

8) If you do use a credit card for purchases, try to use one with an introductory APR or a regularly low interest rate. This could end up saving you big bucks every month and also in the future, which is one of the most important rules to personal budgeting.

9) Request free samples. A number of websites, including StartSampling.com and WalMart.com, offer customers the opportunity to request free product samples of certain items. Everything from skin lotions and shampoo to dog treats and household products are up for grabs to all who ask. In addition, many manufacturers offer free samples of new product releases directly through their own website.

10) If you find yourself in increasing credit card debt, call the creditor and request to be placed on a hardship program. This type of program allows for lower interest and smaller payments for a specified amount of time. Depending on the creditor, it can be in effect for several months or until the balance is paid in full. This method will not only help your immediate personal budgeting, but will also give you additional financial freedom in the future when the debt is paid in full.

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Credit Counseling vs. Debt Consolidation - Which one should I consider?

Debt consolidation and credit counseling are similar services that both assist individuals in getting out of debt.

Debt consolidation agencies help to minimize interest rates and therefore the monthly payments. The replacement of several monthly loans by a single loan at a lower interest rate and sometimes with an extended repayment period can be of significant assistance to a person in debt. A single secure loan can lead to the interest rates dropping by as much as half. The debt consolidation company interacts with the collection agencies and credit card companies on behalf of their client and along with a reduced rate, they can also negotiate for elimination of late fees and a reduced balance. Debt consolidation is not applicable to secure loans such as mortgage loans and car loans but is very useful for unsecured credit card loans.

Debt consolidation is received well by the creditors who prefer it over bankruptcy. Debtors can get out of debt by using debt consolidation and maintain a good credit record, something which would not be possible if they filed for bankruptcy. Debt consolidators may charge a fee upfront or charge service fees; given that most debt consolidation companies are non-profit, these fees are usually quite affordable. Debt consolidation is ideal forsome  people who wish to get out of a debt as quickly as possible without juggling their finances in a major way.

Credit counseling organizations also assist consumers in clearing their debts. Credit counseling organizations were first started by the credit card industry that was looking for a way to ensure that their debtors not file for bankruptcy. Consumers who participate in a credit counseling program normally have a certain amount of debt with reference to the monthly income. One may not qualify for a credit counseling program if in the creditor’s opinion the debtor has the income to make the payments.

Credit counselors interact with the creditors on behalf of their clients to secure a revised monthly repayment schedule, a reduction in the interest rate, or a waiver of the interest charges, if possible. Credit counseling services assist with unsecured debit like credit cards, auto loans, medical bills, attorney bills, etc. Well-established credit counseling companies can even negotiate with creditors on behalf of those who have defaulted on secured debt repayment and help them to pay the arrears as per an agreeable plan, thereby avoiding foreclosure and repossession. Credit counseling is recommended for those who wish for a complete alteration in their finance management and require assistance from a third party to assess their financial options. It is not uncommon for creditors to pay the credit counseling fees on behalf of the debtors in order to encourage them to repay the debts. Unlike debt consolidation services, credit counselors provide useful advice for not only getting out of debt for future success and provide clear guidance to manage beyond the services offered. Debt management is healthy and provides successful planning for the future.

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Accurate Negative Information And Controlling Your Debt

When negative information in your report is accurate, it doesn't mean that at some point it cannot be removed. A consumer reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years. Information about an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. There is no time limit on reporting information about criminal convictions; information reported in response to your application for a job that pays more than $75,000 a year; and information reported because you've applied for more than $150,000 worth of credit or life insurance. There is a standard method for calculating the seven-year reporting period. Generally, the period runs from the date that the event took place.

Your credit file may not reflect all your credit accounts. Most national department stores and all-purpose bank credit card accounts are included in your file, but not all. Some travel, entertainment, gasoline card companies, local retailers, and credit unions are among those that usually aren't included.

If you've been told that you were denied credit because of an "insufficient credit file" or "no credit file" and you have accounts with creditors that don't appear in your credit file, ask the consumer reporting companies otherwise known as credit reporting agencies to add this information to future reports. Although they are not required to do so, many consumer reporting companies will add verifiable accounts for a fee. However, if these creditors do not generally report to the consumer reporting company, the added items will not be updated in your file.

Having trouble paying your bills? Getting late or reminder notices from creditors? Are your accounts being turned over to debt collection companies? Are you worried about losing your home or your car?

You're not alone. Many people face financial crises at some time in their lives. Whether the crisis is caused by personal or family illness, the loss of a job, or simple overspending, it can seem overwhelming. But often, it can be overcome. The fact is that your financial situation doesn't have to go from bad to worse.

If you or someone you know is in financial hot water, consider these options: realistic budgeting, credit counseling from a reputable organization, debt consolidation, or bankruptcy. How do you know which will work best for you? It depends on your level of debt, your level of discipline, and your prospects for the future.

The first step toward taking control of your financial situation is to do a realistic assessment of how much money you take in and how much money you spend. Start by listing your income from all sources. Then, list your "fixed" expenses — those that are the same each month — like mortgage payments or rent, car payments, and insurance premiums. Next, list the expenses that vary — like entertainment, recreation, and clothing. Writing down all your expenses, even those that seem insignificant, is a helpful way to track your spending patterns, identify necessary expenses, and prioritize the rest. The goal is to make sure you can make ends meet on the basics: housing, food, health care, insurance, and education.

Your public library and bookstores have information about budgeting and money management techniques. In addition, computer software programs can be useful tools for developing and maintaining a budget, balancing your checkbook, and creating plans to save money and pay down your debt.

Contact your creditors immediately if you're having trouble making ends meet. Tell them why it's difficult for you, and try to work out a modified payment plan that reduces your payments to a more manageable level. Don't wait until your accounts have been turned over to a debt collector. At that point, your creditors have given up on you.

The Fair Debt Collection Practices Act is the federal law that dictates how and when a debt collector may contact you. A debt collector may not call you before 8 a.m., after 9 p.m., or while you're at work if the collector knows that your employer doesn't approve of the calls. Collectors may not harass you, lie, or use unfair practices when they try to collect a debt. And they must honor a written request from you to stop further contact your state Attorney General's Office.

If you're not disciplined enough to create a workable budget and stick to it, can't work out a repayment plan with your creditors, or can't keep track of mounting bills, consider contacting a credit counseling organization. Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But be aware that just because an organization says it's "nonprofit," there's no guarantee that its services are free, affordable, or even legitimate. In fact, some credit counseling organizations charge high fees, which may be hidden, or pressure consumers to make large "voluntary" contributions that can cause more debt.

Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.

Reputable credit counseling organizations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in the areas of consumer credit, money and debt management, and budgeting. Counselors discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.

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After Bankruptcy: Applying for Credit

Many people who have filed bankruptcy in the past apply for credit the wrong way. The lending game simply isn't what it used to be.

They fill out a credit application and hope for the best. Best case, they probably end up paying a lot more in interest and finance charges - hundreds or even thousands of dollars more, depending on what they're buying.

That said, in this article we are going to talk about the RIGHT way to apply for credit and loans. So what is it? Well there are three steps:

1) Learn how to increase your credit score - there is a system to this process

2) Know the credit approval process - it varies with each lending institution

3) Know how to apply for credit and loans - be clear about your borrowing goals so you can get an outcome

Now, you want to get all three of these steps right. Not just one or two, but all THREE! See if you miss one, or don't do it just right, you can end up paying $100s, $1,000s or $10,000s in additional interest and finance charges, depending on what you're financing.

Here are the three steps in more detail...

Step One: Learn how to increase your credit score.

Increasing your credit score is a key factor in lowering the interest rate you pay on loans and getting approved for them as well. Unfortunately, there are a lot of myths out there that can actually hurt your credit score.

There a number of ways to increase your credit score. One way is to watch your credit card balances. Lenders don't like to see them go above 30% of the available credit limit.

For example, if you have a credit limit of $3,000 and you're current balancing owing is $1,800 (60%) that can hurt your credit score. In this situation, there are two ways you can fix the problem.

First, of course, is to pay the balance down so that it's less than 30% of the credit limit. The other way is to get a credit limit increase:

If you can get a credit limit increase to $5,000 that will means you will be at less than 50% of your credit limit ($1,800 balance versus $5,000 credit limit). And you didn't have to pay down the balance by a penny!

Another way to increase your credit score is to add years of positive credit history to your account. Most people don't know about this and it's 100% legal. But that's another article in itself.

The point I am trying to make is that there are a number of strategies you can use to increase your credit score. Best of all, many of them can be implemented quickly and easily.

Step Two: Know the credit approval process

What do potential lenders look for? Here you need to know the questions to ask. For example, do they work with people who have had a bankruptcy in the past? What is the minimum credit score they want to see? How old can the collections and late payments be of record. These are just the initial questions.

There are a number of other questions. There are also a number of items that send up red flags if a lender sees them on your credit application - ones that could jeopardize your chances of qualifying for the loan or cost you more money in interest.

Another factor when applying for credit and loans is timing. You don't want to apply for credit and loans until you've increased your credit score (most people make this mistake).

That brings us to step three...

Step 3: Know how to apply for credit and loans.

Knowing which lenders to approach and how to negotiate with them is also really important.

Apply for a loan or credit with the WRONG lender and you're practically guaranteed to be turned down; or, you end up paying a pile of interest.

Then there's there is the negotiation process. This especially important when you're buying a car - for example, people will spend a lot of time negotiating the price of the car they're buying and the value of their trade in (if they have one) - and STILL be taken advantage of. They don't know how to REALLY negotiate for a car.

Think about it. How often do you buy a car? If you are like most of people it's probably once every so many years. Now, how many times a day do you think a busy car dealership negotiates with buyers? Multiply that by weeks, months and years and you can see that they have slightly more experience.

You should now have an idea of the RIGHT way to apply for credit after bankruptcy. Though I wasn't able to go into detail on ALL of the strategies you can use to increase your credit score and qualify for credit and loans at more reasonable rates this should at least give you a starting point.

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5 Ground Rules for Home Buying Success

There are few purchases in life that carry the financial and psychological weight of buying a home.  Whether you are buying your first home, moving up to your dream home, or downsizing your home and your life after the kids have gone, it is important to understand the ground rules for success in the world of buying a home.

Making the wrong decision in buying a home can have devastating and long lasting effects, while making a wise decision in home buying can greatly enhance the overall value of the investment.  It is necessary to learn all you can about the world of home buying and mortgages before setting out to purchase the home of your dreams.

While there are plenty of web sites designed to help first time homeowners learn all they can, most financial experts say that there is no substitute for the good old one-on-one learning. Fortunately, most mortgage lenders, home inspectors and real estate agents will be able to provide this kind of one-on-one learning.

When buying a home it is often best to use a systematic approach as this is often the best way to be sure that all decisions are based on information and reason, not on impulse or emotion.  Buying a home can be an emotional process, nevertheless it is imperative to keep your emotions under control and not let them cloud your judgment.

There are five basic ground rules when it comes to buying a home and shopping smart, and they are:

#1 – Get your financing before you get your home

There are few things in life as disappointing as losing out on the home of your dreams due to not being able to secure funding.  While the desire to get out there are search for that great home is understandable, it is vital to line up the financing you will need before you start shopping for a home.

Getting the financing ahead of time has a number of important advantages, including knowing how much you can buy and gaining more respect from the listing agents.  By knowing how much home you can afford before you shop you will avoid wasting your time looking at unaffordable properties, and the listing agent will be more than willing to show you the homes in your price range.

It is also important to take a good look at the various types of mortgage on the market before getting started in the home buying process.  These days, mortgages come in far more choices than the typical 15 or 30 year. For that reason, potential home buyers need to understand how each type of mortgage works, and to gauge which mortgage is the best choice for their needs.

#2 – Look at the community, not just the home

It is a good idea to look at the entire community, instead of focusing on a single home. This can be a particularly important thing to consider for those moving to a new metropolitan area, as these buyers will be unfamiliar with the local climate and lifestyle.  It is crucial to determine the areas of town that are most desirable, and to consider things like distance from work and local shopping opportunities.

We have all heard that location is the key consideration when it comes to real estate, and that is certainly the case.  Buying a house in the wrong area can be a big mistake, and it is important to choose the location as well as the home.  Potential buyers can learn a great deal about the nature of the various neighborhoods simply by driving around town, as well as by talking to other residents.

#3 – Be fair with your first offer

Trying to lowball a seller on the first offer can backfire, as can paying too much. It is important to carefully evaluate the local market, and to compare the asking price of the home with what similar houses in the neighborhood have sold for.

Comparing the sales of comparable homes, what are known as "comps" in the industry, is one of the best ways to determine what is fair, and to make sure that you neither overpay or underbid on the property.

#4 – Always get a home inspection

Always investigate the home for any possible defects before making an offer.  Compared to the cost of the average home, the price of a quality home inspection is virtually negligible. Hence, get a good home inspection done before you buy.

To find the best home inspector, it is a good idea to seek out word of mouth referrals as many of the best home inspectors rely on word of mouth advertising.

#5 – Do not alienate the sellers of the home

Many real estate deals have fallen apart due to the personal animosity of the buyer and the seller.  It is important to avoid alienating the seller of the home during the process, and to avoid nitpicking every little detail during the sale.

Keeping the good will of the seller will help the transaction go smoothly, and it will provide the best environment for seller and buyer alike.

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9 Things you must do to maximize your chances of obtaining a small business loan

To get approval for your small business loan application, you must be able to meet the lending criteria established by the bank.  Some organizations are subject to more adverse risk than others, and will therefore have more stringent criteria. To vastly increase your chances of a successful funding application, you will need to be prepared to present the following information:

1. The reason for the loan.  The lender will be looking for something that fits within the normal range and expertise of your business.  The amount may cover a number of items, but a clear method of explaining the reason is needed.

2. The amount required, and the repayment term of the small business loan you want.  (e.g. $10,000 term 5 years, payable quarterly).

3. Details of how you will repay the amount borrowed. For example:- This loan is for the expansion and marketing of XYZ Services. We offer are a wholesaler for XYZ products.

4. Details of any collateral you are able to offer to the lender.  This will act as reassurance for the lender. If you're not prepared to put up some aspect of security, then why should they?

5. You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in.  What kind of business you are in etc.

6. 3 Years financial statements.  You will need to present quality financial information from your accounting software, preferably signed off by your accountant or tax advisor.

7. Latest Set of Management accounts. Again produced from your accounting software.

8. Accounts receivables (debtors) and payables (creditors) reports.

9. Principals financial statements - Particularly required if some form of collateral is necessary.

If you are a new company, the emphasis is going to be on your business plan , and collateral you or your business can provide against the loan. Lenders are still checking personal credit, they want to know what kind of payment history you have that indicates the likely hood you will repay the loan.

You must be able to present your case to the bank. Practice on your colleagues and family (you never know, they might be so impressed, they'll invest or lend!).  It may help to role play with a friend and come up with as many pointed questions as possible.  Anyone who may take an interest wants to know you are well versed in your business and can handle the expectation of growth. Work your plan and be diligent. Small Businesses are more successful now than ever.

Good luck!

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A Living Will Could Save Family Financial Ruin

You don’t need to be an economics major to figure out that if health care is going up 20% or more every year while income is not rising for most people, things are looking too good. It is entirely possible for a person to work their entire life and retire with a nest egg of $200,000 or more only to have it wiped out by one major medical issue. This is especially the case when machines must be used to keep you alive due to a severe injury or illness. It is in tragic times like these that a living will can be the difference between saving or breaking a family—economically at least.

A living will is a legal document granting another person the right to cease treatment in the event a person becomes unable to live, eat, and function without the aid of machines or medical care. A feeding tube may be removed, a ventilator turned off, or any other machine or device that is being used to keep a person alive may be discontinued or turned off if the executor of a living will determines so.

Of course, there are certain conditions that must be met in order for the executor of a living will to be able to make the decision to cease treatment. Unfortunately, there are no uniform and concrete set of conditions to be met in a living will because they differ from state to state.

In general, however, physicians must determine that a person is unlikely to improve and in a debilitative or painful state. Also, the person must not be able to care for themselves and thus require a machine or other medical device in order to remain alive. At that point, a person with a living will can have treatment terminated if the executor requests doctors to do so.

Of course, there are instances when a living will is contested by other family members not named in the living will. In most cases, the courts have ruled in favor of the wishes made clear in the living will and rarely ordered the continuation of treatment. And honestly, that treatment is very expensive and run into the thousands of dollars—each and every day.

No one wants to see the passing of a loved one but no one wants to see them suffer, either. If a person took the time to have a living will drafted and they found themselves in a situation covered by the document, then chances are they would want their treatment adhered to. While an unpleasant topic of discussion, the fact remains that medical situations arise where the person will not recover and is being kept alive in an uncertain state is traumatic for any family. These days, prolonging life at a certain point only costs everyone more suffering, confusion, and money. It's tough and families deserve to see their loved one cared for. A living will is the responsible smart alternative that makes a potentially painful decision out of the doctor, the attorney, the creditors and anyone else that could have a say and puts it squarely in your control, your families control—where it belongs.

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7 Do’s And Don’ts Of Building Wealth

Don’t fall behind - Sounds simple, but hard for many people

Finance charges, interest payments, getting discouraged about your finances… all problems that can occur if you let yourself fall behind. Whether it’s bills, credit cards, or student loan payments, falling behind can be a very difficult problem to come back from. The more you have to pay out in charges, the less you will have to invest in your future.

Set goals - A personal GPS is how life takes shape

If you don’t know where you are headed, how do you get there? In order to accumulate wealth you need a plan. Write out your goals, a way to achieve them, and you’ll be on your way to an early retirement.

Invest early - Wealth takes time to accumulate

The greatest thing you can do to build wealth is start early. Even if you can’t invest much, start with what you can and let your money grow over time. As Albert Einstein said, “compound interest is the greatest mathematical discovery of all time.”

Invest in what you know - Familiarity makes for precision

Whether you are looking to invest in real estate, stocks, or anything else, make sure you know how the investment works. The great Warren Buffett was often criticized for not investing in technology during the dot-com boom. His answer was simple. If you don’t know the business model, what the company does on a day to day basis, or how it generates revenue now, and in the future, then stay away from it. This principle can be applied to all types of investing.

Don’t do what the crowd is doing - Illegal lane changes will cause a collision and destroy opportunities

When everyone is starting to get into an investment, that is generally when the smart investors are getting out. If everybody knows a stock is hot, or that their real estate market is booming, it generally indicates a bubble and that it’s time to cash out. Investors make money buying low and selling high. If an investment is hot and lots of money is flowing into it, you can’t buy low.

Don’t try get rich quick schemes - Your motive determines your outcome

Don’t get greedy. This is easier said then done, but don’t try to gain too much too fast. Building wealth takes time and hard work… there is no easy way to get rich.

Save more - Wealth happens faster this way

This is another one that sounds pretty basic, but can be difficult to achieve. Often times people want the instant gratification and go out and treat themselves. If you have some money burning a hole in your pocket at the end of the month, save it. Think about how nice it will be when that money is working for you rather than heading out shopping.

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Give Yourself a Raise in 2013

How would you like to earn more in 2013? Up to $10,000 more? The answer is not by earning more, although that can help, it’s by cutting back on your daily expense. We work to earn a living. Most people live paycheck to paycheck. They never have money left over at the end of the month. Where does it all go? You can probably account for the majority of where you paycheck goes. For many its, housing, car payments, credit card bills, and food. But where do all those other dollars go?

You might be surprised how much cash you spend every day without really knowing it. Lets start with your drive to work. Long commute? How much gas do you use a week commuting? Are there ways you can reduce that? Car pool, public transportation? A job closer to home? Do you have to pay for parking? If you have to park in a downtown area anywhere in the county you are probably spending $8-$12 or more per day. Can you find a less expensive place to park even if it means walking a few extra blocks? A job where you don’t have to pay for parking can save you $100-$200 a month.

How about the morning coffee. $30-$40 per month? Do you bring your lunch or eat out everyday? $3-$10 a day is another $60-$200 a month. Don’t forget the snack out of the vending machine and your afternoon soda break. There is another $35 a month.

If you add it up you are looking at spending $300 a month or $3600 a year that it is costing you to work. These are just some of the daily expenses you may have, not including other work related expenses. Now divide $300 a month by how much you make per hour and you will know how many hours you need to work just to be able to work!

You don’t have to give up everything at once but if you start to cut back now when you get your next raise you will have even more money to put away. The easiest thing to do now is simply keep track of your daily expenses for the next few weeks. You may be surprised just how much you are spending. Once you know where your money is going then you can start to cut back.

Don’t get in the habit of going to the ATM every few days. Once cash is in your hands, you will never know where it went. If you want to keep more of your hard earned dollars start to budget today. You will be glad you did. Many people think budget is an ugly word, but the truth of the matter is, a budget can honestly save your life.

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The Learning Process About Money And Wealth

What did you learn about money? Where did you learn about money or wealth?

Let us touch on the issue of our basic educational institutions, the schools, where we learn about the facts of life.

What are the subjects covered in school?

Language, mathematics, science, history, social studies, religion, among others are all important for us to study to blend ourselves well with society.

Even in the collegiate level, depending on what course one chooses to take, lessons are concentrated on the theories, principles and/or basics which are hardly in consonance with the real world.

How do we learn new things?

Reading websites, attending seminars, and talking to people more knowledgeable on the subject are some of the ways. We also learn by making mistakes, like babies learning to walk.

It is like roller skating where we get bruises every time we fall. The message is: “Don’t let mistakes stop you from learning. Learn from those mistakes and let them encourage you to learn more.” "The mistakes actually help you grain more perspective and insight."

Always bear in mind that education in school is only the fundamental foundation of general knowledge. Outside school , we must gather as much skills as possible especially those pertaining to creating wealth.

I firmly believe that one’s choice of endeavor must be anchored on love. Because when you love what you do, you will enjoy and take good care of it, not to mention the benefits it will bring to your health. With this in mind and in heart, you are following the dream of your life and you can use this principle in the choice of your business to gain wealth.

Loving is one thing. Knowing is another. Know your business. Know how to go about it. It is imperative that you acquire financial knowledge to gain wealth.

Today, information is wealth. Get to know what is going on around you. You will find opportunities to get rich from information that is current.

Time can be of the essence depending on the subject of the business. Knowledge on the business is vital; that is why learning is a non-stop process. You need not necessarily be familiar with a particular business, but you must learn to know the business before you get involved in it.

People who have actual experiences on a subject are the ones you can talk to in gathering information. Do not listen to hearsay or to those who neither know nor have any experience on the subject. Knowing is an asset; not knowing is a liability. That is why, information is wealth.

Exchange information regarding financial matters with your colleagues as frequently as possible. This is one way to acquire updated news.

On topics that are not clear or familiar to you, ask questions (rather than pretend you know when you don’t) and be generous to share what you know when asked. Opportunities are sometimes born spontaneously in discussions that are beneficial to either or both parties.

The risk factor is always there even if you know the business. This is inherent in every type of business. But risk can be managed and kept to a minimum if you have the proper knowledge.

Gathering information may be time consuming but time well spent. Sometimes, it takes more time to gather information than the business itself. Keep in mind though that timing (when to act) could be important in the business you are interested in.

How much you know is different from how fast you know. Remember the old saying: “The early bird catches the worm?”

The first or earliest to know gets the opportunity. If you know of an opportunity that is not yet in the news, it’s good news. Stay focused. Keep a clear and keen mind. Just like the advice of a weather station: “Know before you go.” The same thing is true in business: “Know before you go (into action).”

When in business, you must learn to manage the flow of money, your people, and your system. Get to know where the money you invest should be at any particular time so that you don’t get cash strapped in the middle of your transactions. Make sure your money flows smoothly to where it should be. Learn to manage your people. They work for you, so take good care of them and they will take good care of your business.

Systematize your work flow. This will cut wasted time, energy, and money as well. What you save is additional profit.

Keep in mind to leave some time for your out-of-business activities too, like family and social affairs. Like giving credit to where credit is due, give time to where time is due. Think of ways to do more in less time. This will increase your profit margin making you more competitive.

Most people find difficulty in marketing or selling products and / or services. It takes time and patience for your prospective clients to get acquainted with what you’re offering. Their most likely first reaction is to reject it. This is normal. With the right people negotiating and handling the marketing aspects of your business, you can surmount this difficulty and eventually come up with positive results.

Communication skill is very important. It is your eyes, ears, and mouth rolled into one. It is a friendly spy or in-the-know-person to keep you updated, connected and more knowledgeable. Without it, you’ll be groping in the dark, looking around trying to figure out what direction to take. Read everything you can and locate a mentor, it will make a difference in your wealth journey.

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College Student Credit Cards - How to Choose the Best One

There are so many credit cards being offered to college students these days that it may be difficult to choose the right college student credit card. It is important to choose carefully to make sure that you have the best deal and rates available.

The interest rate that a college credit card charges is extremely important to take into account. The fact is that when you make a purchase on a college credit card you are, in effect, borrowing money from the credit card issuer. You must pay a monthly interest rate on this loan unless you pay your balance off in full every month. So, you want to have a college credit card with the lowest annual percentage rate and the longest 0% interest introductory period. The majority of college credit cards will be very similar in these two regards so the next point to consider is the rewards that you receive for using the credit card.

For most students, their college credit cards are the first ‘proper’ credit cards that they will have had and they will not be familiar with the types of rewards that are the best. The three main reward types that are most useful for students are:

* Frequent flyer miles
* Cash back
* Free gas

Frequent flyer miles are the best rewards to have with a college credit card for students who are attending a college a long distance from home. As you use your college credit card you accumulate frequent flyer miles that you can exchange for flights back home – or wherever you want to go. Unlike airline reward schemes, frequent flyer miles can be used on any participating airline, worldwide.

Cash back on a college credit card is actually a points system. As you spend money these points accumulate against your college credit card and they can be exchanged for cash, gift certificates or special discounts at popular outlets and stores. The amount of cash back that a college credit card awards may seem small but every little helps and you will soon be racking it up.

Free gas when you use your college credit card is the best option for students who have their own car. Gas prices are getting higher and some college credit cards offer rewards to help with the rising cost of motoring with rebates against gas station purchases. These opportunities exist and free gas college credit cards also offer discounts and points towards other motoring related items so it is worth comparing the different possibilities available. More and more, college students are falling behind and if you must use a credit card, try selecting one that will best fit your overall financial needs.

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Affordable Car Insurance - It All Depends On You

Affordable car insurance is difficult to find these days. But if you are patient and diligent enough to scour the horizon for that perfect car insurance, you might just be lucky enough to find the right benefits for you and your car.

You will have to do your homework though: canvassing, weighing the options, considering how much premium you can afford to pay and how protected you want to be.

Once you have decided which among the offers you have considered is most responsive to your needs and capability to pay, then that should be what is “affordable” for you. Remember that the term is relative. Thus, an affordable car insurance is only so, based on what you are able and willing to shell out and risk.

Affordable Car Insurance - Weighing the Options

The spirit behind insuring is to buy protection even before you need it. Insurance should give you peace of mind (and this commodity does not come cheap most of the time) so that when you need help, you are assured to get it. Car insurance is required in 47 states. This gives you an idea how important it really is.

Laws vary across the country as to how much protection you should get. It is wise to check your state's minimum requirements. Then if you can afford, you might want to consider optional coverage for extra protection.

You have to consider several factors when deciding which affordable car insurance you want to get. Know that your driving records affect the premium insurance companies will offer you.

If your car is equipped with better, more sophisticated security and safety features, that can also affect the worth of your policy. Of course, the most important consideration is how much you are willing to pay. You will be able to determine this if you read at the fine print, so to speak, of the policies you are being offered.

The insurance packages you will most likely find vary in the protection they offer from mere liability, to collision and on to comprehensive. There are even policies that include medical expenses in case you get hurt in an accident, and help with your car in case an uninsured or underinsured motorist causes the damage.

Affordable Car Insurance - Making the final decision

It is ideal that you get comprehensive coverage for your car insurance. After all, if you want protection, why not go for the most complete? There are comprehensive insurance policies out there that will not bust your pocket. Again, you should be patient and should know where to look.

There are also some insurance companies that offer discount packages if you get both your home and car insurance from them. If you have more than one car to your name, look out also for multi-car discounts.

Do not forget the real reason why you are looking for an affordable car insurance - to save money. But if you are too keen on penny pinching without giving due consideration to what might happen if you are under-insured, you are needlessly putting yourself in a financial risk. Again, an affordable car insurance is only so, based on what you are able and willing to shell out for good coverage. Risk becomes real when coverage is less than adequate. Do yourself a huge favor and be kind to your financial future and good driving record - get covered and stay covered!

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5 Ways To Instantly Increase Your Credit Card Limit

Ifyour a credit card holder today, you more than likely could use a credit card limit increase at some point. A lot of credit card holders aspire for a higher credit card limits and its often a mystery how an increase can be achieved.

It's important to remember that to get a higher credit card limit, you must abide by the terms and conditions of the credit card company or their lending bank.

Here are 5 ways to get a higher credit card limit:

1. Prove your credit worthiness
The most important thing to do for getting a higher credit card limit is to prove your credit worthiness. This is the first thing that banks and companies look for when giving a higher credit limit.

2. Attract positive attention from the credit card company
At least: try to attract positive attention by paying finance charges once in a while. Obviously, this is not advisable on a repeating basis and should only be used as a last resort to increase your chances of getting a higher credit limit.

Proving to credit card companies and banks that you are good "borrower" can be a convincing way to get a higher credit limit. But be careful because this strategy also means that you will be paying finance charges which can accumulate in a hurry and forsight is definitely needed.

3. Always spend within your credit card limit
Doing so means that you are capable of controlling your expenses and you are not practicing poor spending habits.

4. Use your credit cards regularly
Don’t keep your cards for emergency use only. If you use your credit cards sparingly, banks and credit card companies will be unable to understand your spending and pay-back behavior. Under these circumstances, most banks and credit card companies will be reluctant to give you a higher credit card limit.

5. Avoid late payments as much as possible
This technique will not only increase your payment increase, but you may also have to pay an additional fine for not clearing bills on time. This will also dim your chances of getting a higher credit card limit.

The bottom line is that your performance is recorded with each transaction and banks and credit card companies will determine whether you’ll get a higher credit card limit from that recorded performance as it is where they will look to determine if an increase will be granted.

Always use your credit with care and caution, be mindful of overlapping and/or regular fees such as memberships. If you use the tips described here, you are well on your way to establishing increases.

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Filing For Bankruptcy Will No Longer Be An Easy Option

Most of us already are aware that the change in the bankruptcy law has altered how filings are handled and the terms in which how they are approved has become extremely stringent. Those who are already in debt argue that it is unfair. Companies that have suffered profit loss through the years are relieved to hear the news. Individuals who rely on this option, are not at all relieved.

The change in the bankruptcy law will force most individuals who are in debt or facing debt to file for Chapter 13 bankruptcy. The old way of just erasing debt will no longer be an option to most.

How does Chapter 13 bankruptcy work? Well it is a plan that arranges monthly payments of the debtor. The courts calculate what amounts the individual can pay on a monthly basis. Chapter 13 is available to anyone who has some kind of steady income allowing them to come up with money to pay off their debts. It does prevent the debtor from the need to liquidate any of their available assets. The individual does not decide what they can pay and when they can pay it off. The courts will calculate the payment arrangements and the time line in which the debts are to be paid off.

Now that there is a new bankruptcy law people should plan better for the future to prevent their need to file as bankrupt.

There are circumstances that most individuals do not account for when they invest into a home or use credit cards for purchases. One significant cause to debt is suffering some kind of financial loss such as losing a job or investments such as stocks. When this kind of situation occurs people are not equipment to pay their monthly payments such as mortgages leases and credit card bills.

A wise thing to do is to be prepared for the unexpected. Save some money off to the side. Keep it in a separate account in case something that was to happen in the future that effects your income. Establishing any kind of financial plan is always a good move to avoid bankruptcy. It will also aid in rebounding from financial challenges.

There are things that happen that no one ever plans on that can lend him or her in debt. However part of the cause for the change in the bankruptcy law is do to those who have abused the filing power of bankruptcy. Although there are very many people who never abused the system they will have to suffer the consequences.

Most people may feel that the decision is unfair. Especially to those who did all they could from falling into debt. We can not turn back the hands of time and erase the decisions that were made by our government. Regardless of your situation we most pay the same price caused by those who abused bankruptcy in the past.

The best step we can take is to be prepared for all financial circumstances. Make a back up plan of your own and never have the need to even consider bankruptcy.

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3 Ways To Get The Lowest Interest Rate On Your Car Loan

If you're like the average American, chances are you buy a new car every five years or so. Most people need an auto loan when they buy a new vehicle, whether it's a car, truck, SUV or van and since the interest on auto loans can add up over time--especially on a five or seven year loan!--it's important to try and get the lowest rate possible on your car loan. So find a low rate car loan by…

Getting your loan before you shop!

If you wait until you get to the car lot to think about financing, the dealer will try and push "dealer financing" on you. That's because his financing usually comes with extra "padding" to make you pay more--and to boost his bottom line. The interest rate on dealer financing is often 3% higher than financing from a bank, credit union and or online loan company. So get a loan before you shop for a car. Another bonus: you'll have more negotiating power for the price of the car since the dealer knows you're a financially stable customer.

Knowing the current rates!

You'll never know if you're getting a good deal unless you know the going rates for car loans! Search the web, call around to local banks and ask friends or family what the current interest rates are for car loans. Be sure to compare apples to apples by considering things like loan term, since longer term loans often have lower rates. Your credit history will have an effect on your rate, too.

Comparison shopping!

Get quotes from as many lenders as possible. Check with your current bank, credit unions, online lending services and other loan companies. Get at least 3 or 4 different loan quotes so you can compare rates, terms and fees. Let them know you're shopping around and that you've received better offers. It's possible they'll lower your rate or drop your fees to get your business.

You may also want to consider an online lending service that allows you to compare rates between multiple banks and loan companies at one time, since they're a convenient way to shop around without getting multiple hits on your credit report.

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Why Bankruptcy May Not Always Be The Best Option When In Trouble

It's a sickening feeling when your debts start to stack up, your marketing strategy is failing, and it doesn't look like you'll ever be profitable. Your family is getting stressed, your business can't pay its bills, and customers are starting to make angry phone calls asking why the things they paid for aren't happening.

At this point, many people feel ready to throw in the towel. I'm here to tell you why you shouldn't be one of those people.

A Proverb.

There's an old Chinese proverb I'd like to share with you: the temptation to quit will be greatest just before you are about to succeed. Nowhere is this more true than in home business. You might feel like you're failing over and over again, until you feel like giving up. The paradox, though, is this: you haven't really failed until you've given up.

Never Fear.

If you really want to, there will always be ways to raise money for your company. You probably have all sorts of bills for things you don't use, not to mention possessions that could be sold or downgraded. Did you know that the average person has thousands of dollars worth of random stuff just lying around in their home? In other words, you can always find the money if you're really determined and not afraid of losing everything.

The only thing you should really try to protect is your house and some money for basic food -- everything else is expendable. Never forget that the worst thing that can really happen to you is that you'll have to go out and get a job. Would that really be so tragic?

Fear is your enemy in business. You cannot give in to your fear and give up before you've given it your all -- the real reason why so many home and small businesses fail is that their owners chicken out and run away at the first sign of trouble.

The Captain Goes Down with His Ship.

When the chips are down, the only thing to do is to stake your personal success on the success of your business. After all, what's the point in bailing out before you have to? You're guaranteed to lose money that way.

Someone once told me that the difference between an average Joe and an entrepreneur is this: the entrepreneur will not give up on a business until his creditors come and take everything he owns. And even then he might try to hide from them and keep things going from his friend's basement.

Don't Tell Customers.

It might seem dishonest, but for goodness' sake do not tell any of your customers that things are going wrong because your business is in trouble. They will immediately run a mile, putting your business in a far worse situation than it was before. You must always try to make it look like everything is going just fine -- admitting problems will put the final nail in your business' coffin.

Try a Voluntary Agreement.

If your creditors are at the point of knocking on your door, you should try to get a voluntary agreement with them before you even consider declaring bankruptcy. This is when you negotiate your debts down to a lower level using the threat of bankruptcy, and your creditors sign an agreement with you to say that they will leave you alone once you've paid that money.

The Absolute Last Resort.

I simply cannot get across to you how much you should not consider bankruptcy as a viable option, ever, until you are absolutely forced into it. Think of it as being like suicide: the absolute last resort. Would you commit suicide because your business was going badly? I hope you answered no -- which means that you shouldn't consider bankruptcy either.

Having had a bankrupt company stays with you for a long time in everything you do: your credit rating, your employment history, and even just in the way you think of yourself day-to-day. It's better to have everything wrestled from your hands than to give it up voluntarily -- otherwise you'll always be tortured by wondering what would have happened if you'd kept going just a little longer. Success is often closer than you realize. Never, ever, give up!

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10 key reasons why a you need life insurance

Insurance is designed to protect you and your family from disasters and financial burdens. There are many kinds of insurance of which, the basic and most important is considered to be life insurance. It provides for your children and anyone else you consider a dependent in event you should pass away.

Since there are certain financial commitments you need to meet throughout life and do contribute in some way to the family income, you need to provide something if that happens — to secure the home, help your family meet expenses for a while, protect dependant parents, or secure your children or spouse.

Financial obligations could include funeral expenses, unsettled medical bills, mortgages, business commitments, meeting the college expenses of the children, and so on.

How much insurance you need would vary, depending on your lifestyle, financial needs and sources of income, debts, and the number of dependants? An insurance adviser or agent would recommend that you take insurance that amounts to five to ten times your annual income.   It is best to sit down with an expert and go through the reasons why you should consider insurance and what kind of insurance planning would benefit you.

As an important part of your financial plan insurance provides peace of mind for any uncertainties in life.

1. Life insurance correctly planned will on premature death provide funds to deal with monies due, mortgages, and living expenses. It offers protection to the family you leave behind and serves as a cash resource.

2. It secures your hard earned estate on death by providing tax free cash which can be utilized to pay estate and death duties and to tide over business and personal expenses.

3. Life insurance can have a savings or pension component that provides for you during retirement.

4. Some policies have riders like coverage of critical illness or term insurance for the children or spouse. There are certain rules regarding eligibility for riders which you will need to determine clearly.

5. Having a valid insurance policy is considered as financial assets which improves your credit rating when you need health insurance or a home loan or business loan.

6. In case of bankruptcy, the cash value as well as death benefits of an insurance policy is exempt from creditors.

7. Life insurance can be planned such that it will cover even your funeral expenses.

8. Term life insurance has double benefits, it protects and you can get your money back during strategic points in your life.

9. Insurance protects your business from financial loss or any liabilities in case a business partner dies.

10. It can contribute towards maintaining a family’s life style when one contributing partner suddenly dies.

Insurance is vital to good financial planning and security but you would need to assess your personal risk and long term commitments. Insurance stands a person in good stead throughout life and can be used in case of emergencies during a life time by requesting a withdrawal or loan. This is an amazing benefit that is often overlooked.

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Fast Payday Advance – Know Your Rights

A payday loan can offer a quick fix to a short term financial emergency. I recognize that people use these sources and want to shed some light on, how to protect yourself.

Let's face it, the loans are shady. So know your legal rights before you sign any paperwork or provide your checking account information for deposits and credits.

Your Rights

Payday loan lenders must abide by both federal and state laws. State laws will dictate amounts you can borrow and your repayment period. For example, Montana limits cash advances to $300, while Illinois sets caps at $1000. Regardless of where you live, you can expect some basic protection under the law.

Know The Costs Involved

Before you sign for a cash advance, you have the right to know the cost involved. This includes both the APR and loan finance fees. Legitimate lenders will post this information on their website or send it when you request more information. You should also receive this information in a loan agreement.

Know The Payment Plan

You also have the right to know what the payment plan is. This should be stated at the beginning of your application process. However, you can often find this information in the FAQ section of a payday loan lender’s website. Ideally you should pay back the loan as soon as possible to avoid paying costly late fees.

No Threats

Payday lenders are not to threaten you with criminal prosecution to collect late loans. You may be hauled into civil court where your wages might be garnished or a lien can be placed against your assets to pay for the loan and court costs. There are some states that don’t allow for collection of court costs, that is something to think about.

State Rights

Some states extend more rights to you as a borrower. For instance, in Washington at one point, you can change your mind and cancel your payday loan within one day. However, with electronic money transfers, it is better to take a serious look at your decision before you submit the application. To understand your own state’s payday loan laws, you can find information through the department that handles financing issues.

Before you commit to a payday loan lender, research the company. Online, there is a review for most companies and their practices. Request information on their rates and payment plans. Compare this information with several companies to find the best deal so you can get as much mileage out of those outrageous fees. Take heed to the a budget to pay it back and be careful not to review often. Payday loans are truly a short term solution. Lastly, be careful where you allow any companies to have access to your personal information, always protect your identity.

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Are you separating your business finances from your personal finances?

Money management is one of the most difficult tasks that a small business owner must face. In the early days, you may have a very uneven income stream, putting out personal funds for startup expenses and operating at a loss. As your business grows, it may become your primary source of personal income. Especially if you work alone or have only a few employees, it is easy for your business finances and personal finances to become intertwined. However, for many reasons, it is important that the two remain separate and distinct. Provided here is a guide to separating your finances.

Why Should I Separate My Finances?

The most important reason for separating your business and personal finances is for tax purposes. You may be entitled to certain deductions for your business, such as expenses for your home office and a mileage allowance for your vehicle. Many of these deductions are not available to individual taxpayers, only to businesses. Likewise, you may be responsible for paying certain taxes on your business that do not apply to your personal income. Separating your finances is the only way to ensure that you properly follow all tax laws and receive all advantages to which you are entitled by law.

Another important reason for separating your finances is the development of a paper trail. If you need to obtain money for the business through grants or loans, you will be expected to show certain financial reports that demonstrate the business’ performance. If your finances are separated it will be much easier to determine which income and expenses belong to the business itself.

Separating your finances can help you decide how best to grow and develop the business as well. You will be able to see the areas in which the business excels as well as those areas in which it needs some extra help. You can generate targeted, accurate reports and financial statements that show at a glance how the business performs in various areas.Painless Billing

How Can I Separate My Finances?

The easiest way to separate your business and personal finances is to open a business bank account. If you use credit to make business-related purchases, apply for a card in the name of the business. Have all payments made to the business account, and use only those funds and the business credit card to make purchases.

How Do I Get Paid?

You have multiple options for paying yourself. Some business owners find it best to write themselves a set paycheck every week. If you are confident that the business will retain enough funds to pay your salary each time, this will streamline the process and make it easier to accurately pay your personal income taxes.

However, if your business is new or unstable, you may find it better to pass funds through the business account to your personal account. You might decide to retain just enough money in the business account to pay for expenses, and transfer everything that is left into your personal account. This is an ideal solution for those who have many personal expenses but few business expenses and earn wildly different sums on each contract.

Setting Up and Maintaining Bookkeeping and Accounting

Many business owners find themselves confused and overwhelmed by the paperwork that is involved in maintaining separate accounts. Consider hiring outside help. A Virtual Assistant company such as IAC Professionals can set up and maintain your bookkeeping and accounting. Your VA can even handle payroll, writing your paycheck each week. You can maintain as much or as little control over the process as you desire. You can hire the VA for a set number of hours per week or per month, or simply retain his or her services on a per-project basis.

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Retiring or leaving the company - How to Properly do an IRA Rollover

Retiring or leaving the company - How to Properly do an IRA Rollover

Whether you are retiring or changing jobs, you need to know what to do with your employer sponsored retirement plan before your leave. Once you leave a job for whatever reason, you can choose to:
•Rollover the money into an IRA (IRA rollover)
•Take the lump sum and pay the income tax and potential penalties
•Leave the money at the company if the company offers that as an option
•Rollover the money into your new employer's plan, if that plan accepts rollovers

Realize that the above are options offered by IRS. However, your employer's rules may be more restrictive and if so, there's nothing you can do. For example, if you have a pension plan that offers payout options over your lifetime or jointly over the lifetime's of you and your spouse, but there is no option to rollover a lump sum to an IRA (IRA rollover), than the rollover option isn't available to you. In other words, the "summary plan document" rules. You may want to get a copy of that now and have your financial advisor review it so that you know what options you have.

So the starting point is to get the information from your employer plan as to the options available to you.
What is an IRA Rollover?

IRA rollover means to move money from a retirement plan such as a 401(k), 403(b) (tax sheltered annuity) or 457 (municipal deferred compensation) into an IRA or other plan. If you receive a payout from your employer-sponsored retirement plan, a rollover IRA could be to your advantage. You will continue to receive the tax-deferred status of your retirement savings and will avoid penalties and taxes.

There are two reasons that rollovers are favored over other options:
•You have virtually unlimited investment selections. Unlike your employer's plan which may have six investment options or even 50 investment options, in a self-directed IRA, you can choose any stock, any mutual fund and a host of other options listed later.
•Company plans often can restrict choices for non-spouse beneficiaries. Specifically, they may not be able to stretch IRA distributions over their lifetime. The benefit of this "stretch" is it defers taxes and allows the funds to potentially grow longer and larger in a tax-deferred environment.
The reason to leave your retirement plan with your company (if they permit this) is because your company plan is covered by ERISA and is protected from creditors. However, under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the creditor protection will follow the money if it is rolled into an IRA and not commingled with other IRA money (from annual contributions).

Combining with Other Retirement Accounts
The rollover IRA is usually funded by the eligible distributions from a company sponsored retirement plan. These distributions can be combined with your existing IRA(s) or placed into a separate IRA, but see the new creditor protection rule mentioned above. In fact, the IRS permits these funds to be combined with other types of retirement accounts. For example, say you have been self- employed and you have a one-person profit sharing plan (often referred to as Keogh plans), you could rollover the employer-plan assets into your profit sharing plan. Or, if you have a second job and that employer has a 403(b) plan and also accepts IRA rollover contributions, you could rollover your 401(k) balance into that 403(b) plan.

Completing your IRA Rollover
When it's time to retire, you have a few options on moving the money from your employer's plan.

Direct IRA Rollover:Your employer can directly rollover your retirement plan payout into a Rollover IRA and you will avoid the 20% IRS withholding tax. This is exactly what you should do by providing your employer the name, address and account number for your new Rollover IRA custodian. For example, you give your employer instructions to send your retirement account to ABC securities, account #8889999. Funds are sent directly to the IRA account and you never touch them. This is the preferred method of moving retirement funds.

Payout by Check: If your employer hands you a check for your retirement funds, the employer must withhold 20% for potential taxes. You can avoid the 20% IRS withholding tax on a payout by check from your employer if you deposit the check plus 20% into a rollover IRA within 60 days. In order to complete the tax free rollover, you now have 80% of your IRA rollover in your hand and you must take the other 20% out of your pocket so that you have a completely tax free rollover (you will get the 20% income tax withheld as a refund after you file your tax return). Don't allow your employer to give you a check, as this requires you to take money out of your pocket to complete your rollover.

Taking a lump sum distribution: This is typically not a wise option because you will pay income tax on the distribution and a 10% penalty if under age 59 ½. However, there may be reasons to take a taxable distribution. If you are set on buying a $300,000 boat (there are people who can do this) and spending the rest of your life floating about the globe, then you may need to take your retirement funds now and pay tax. However, if you can avoid using these funds currently, you'll hopefully have a nest egg when you're older and ready for that next stage of life.

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9 Places You Can Save Money For Your Family

Most families are spending more and more money every year (and not just because the cost of living rose) while also saving less and less. One reason is that few household managers spend much time reviewing expenses and expenditures to find ways they can save money. However almost every family has places where costs can be cut and pennies can be pinched -- and if those freed up funds are then used to pay down debt and save for the future it could have a dramatic impact on their quality of life.

Food is one big area where many families could be more thrifty. Families spend an average of $2,434 on food away from home, according to the Consumer Expenditure Survey from the U.S. Bureau of Labor Statistics. If you (and your spouse and your children) eat lunch out every day of the week then try brown-bagging at least one of those days. If just one of you does it you may save up to $400 a year and if you can double or triple that savings you could finance a family vacation with it.

Another major expense is your home. When was the last time you looked at refinancing? Can you find a lower interest rate? Can you renegotiate to a shorter time frame? Even if you can't change your mortgage payment you may be able to pay a bit extra each month which over time will help pay down your mortgage faster. Also, don't overlook your utilities. There are ways to save in this area as well including updating your insulation and weather stripping, keeping up-to-date with maintenance and cleaning of your furnace and air conditioner or using a programmable thermostat to take advantage of those times when your house is empty or the family is asleep.

Transportation is another major expense for many families. Not only are vehicles expensive to buy but also to maintain and operate especially with gasoline prices at such high levels. Is carpooling an option for any members of the family on at least a part-time basis? Make sure to combine errands and trips to cut down on your travel and save money when buying gasoline by taking advantage of special programs and discounts and remaining vigilant about gas prices. In addition, following a regular maintenance schedule and proper tire inflation can also help you achieve maximum gas mileage for your vehicle.

Choosing your bank wisely can be another way to save money. Make sure the bank you use offers free (or at least low cost) checking as well as electronic bill-paying. Electronic bill-paying and a debit card can cut down on your need to use checks and postage which will save you in the long run as well as help you better manage payments so you will avoid fees, penalties, and higher interest rates.

Cutting your credit card costs can be another major savings. This means making sure you are using the best possible credit card with a low interest rate and low or no annual fee. Shop around until you find your perfect match and don't forget to cancel and cut up those rejected suitors.

Health care is not really an area where you can cut expenses but you can save money by taking advantage of special offers and programs. For example, many employers offer a Flexible Spending Account where you can save money before taxes for out-of-pocket medical expenses for prescription and nonprescription drugs, dental expenses, and eye care.

Tuning up your insurance policies can also help you save money. When did you last compare rates for your home, your vehicles, and yourself? Some other ways to cut costs are to raise your deductible level or using the same company for multiple coverage (your home and vehicles). When you are shopping around make sure to give your current company a shot at keeping you. Sometimes they can offer a better rate too.

Another major expense for many families is the cost of communication including local and long distance phone service, cell phones, cable or satellite television, and Internet access. Review your expenditures and cut out the services you don't need. Can some of these expenses be bundled to save money? Are there better plans for your needs?

When looking to save money it is important to become an aggressive shopper. The Internet makes it possible today to compare prices and product reviews while not spending a lot of time and money driving from store to store. Any big ticket item (and that includes your weekly groceries, cleaning products and health and beauty aids) deserves a closer study.

Over the next, month take time to review your family expenses and expenditures in each of these nine areas. Making a few alterations in your family's spending habits will soon make a difference in the overall household budget. You can raise your family's quality of life by making just a few changes in your monthly budget.

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You SIMPLY must have a Plan!

How that is some people can retire at 50? Or not lose their shirt when there’s a stock market “crash”?

Why are some people able to earn high incomes or even have “multiple streams of income?

How come some people retire to a life of luxury and world travel, while others barely have enough to feed and house themselves?

Of course, one part of it the answer is that some people are more intelligent and industrious than others. No matter what anyone says, we are not all the same. We may have been created equal, but no one has ever guaranteed us equality of results. That depends on our own efforts.

Another part of the answer is that some people consider the risks they will face and do something before  they occur to mitigate the damages. One obvious way of doing this is by buying the proper kinds and amount of insurance to protect your home, health and life – if you have an income stream to protect.

Less obvious, but still a very helpful plan is to become an expert at whatever you choose to do  –  to make yourself indispensable to your employer.

If you work for yourself, you want to be the best at whatever it is you’re doing, from practicing medicine to baking bread. You also have to have the will to persevere and work long hours at making yourself a success.

Yet another part of the answer is having a plan. Some people get up in the morning and let events carry them along through their day. Others plan what they will do with their life and stick to it.

They will learn about investments and how to diversify, so that when one asset goes down another holds its own or goes up. Or they will hire financial professionals to do the work for them.

They save as much money as possible, using every tax sheltered vehicle allowed, including 401-K’s, IRA’s, Health Savings Plans and 529 educational savings plans. And then they will invest even more in taxable accounts.

They live well within their means. Some like Warren Buffet, one of the world’s richest men, lives well under theirs. They will use credit judiciously or not at all.

Successful people will invest in businesses, rental real estate or work part time, while maintaining their full time job  just so they have many streams of income. If one is lost, their world does not come to an end.

Many people play the lottery and hope they will strike it rich. The sad fact is that many think this is the only way get rich. But anybody with the will can find the way.

Our public libraries are filled with books on how to invest, how to insure yourself, how to set up a financial plan or how to open and run a business.

Some employers have tuition reimbursement plans – they will pay your way if you want to better yourself. Or community organizations offer free adult education courses to help you learn new skills or improve on the old.

The internet now makes it easy to set up an online business while you continue with your day job.

The bottom line is you have to rely on yourself to earn and save as much as possible. If you do you can be one of the “lucky” ones who retire young with lots of money to spend.

If you don’t you’ll be living hand to mouth on social security, disability or even un-employment.

The choice is yours.

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4 Money-Saving Tips For Every Homeowner

Losing weight. Finding a new job. Spending more time with the family. A new year means setting new goals. Why not make saving money one of them?

If you're a homeowner, there are many ways you can cut costs and still live comfortably. The following tips will help lead you to financial success.

* First, set a budget. Figure out exactly how much you spend on the upkeep of your home. Compare each month's expenses with the previous month's to get a better idea of how much to budget for each necessity. Then, see what costs you can cut. Once you set a budget, stick to it.

* Save energy. You might be losing a substantial amount of energy dollars during the winter and summer because of air leaks. By caulking, sealing and weather-stripping all cracks and openings, you can save 10 percent or more on your energy bill.

Also, look into replacing older appliances with newer, more energy-efficient alternatives. Your light bulbs can make a difference, too. Fluorescent bulbs are four times more energy efficient than incandescent bulbs.

* Refinance. Shop around to see if you can replace your existing home loan with one that has a lower interest rate. You can easily save hundreds of dollars each month by refinancing your home.

* Purchase a home warranty. Most homeowners don't account for possible repairs in their annual budget. There is a 68 percent likelihood of a home system or appliance failure in a given year. The average replacement cost of one of these systems or appliances is $1,085. A home warranty is your best defense against unexpected and costly repairs to your home's appliances and mechanical systems.

The American Home Shield Home Warranty, for example, ensures you get the best possible service through the company's network of pre-screened technicians. The minute something breaks down, you can contact American Home Shield and a local service technician will schedule an appointment that fits your schedule. The warranty covers a multitude of household systems and appliances, regardless of age.

The American Home Shield Home Warranty is a one-year contract that requires no home inspection to enroll. Several affordable plans are available to fit every budget.

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How Important Is Credit Card APR?

As with most financial products, credit cards are usually heavily promoted on their interest rate, or APR. The lower the APR, the more attractive it's supposed to be to potential customers. But is APR really the most important feature of a credit card?

Firstly, a sizable minority of people use their cards purely as a convenient method of paying for goods or services, and clear their balances in full every month. For this kind of card use, the standard interest rate charged is fairly irrelevant. It's more important that you have an interest-free period long enough to cover the time between spending and settling your account, so you'll avoid paying any interest at all whatever the rate. An interest free period should always be more than 50 days, with 55-60 days being common these days.

If you're one of this group of card users, and you make a substantial number of purchases with your card every month, then you should be going for a card that rewards you in some way for using it. One of the most common kinds of reward program lets you build up points with each purchase, that can later be redeemed as discounts against purchases made in certain stores, or for receiving free gifts, wine, or dining.

Another way of being rewarded for using your card is cashback. Cards offering this feature effectively give you a discount of around 1% on everything you buy using the card, with the discounts being stored up and credited to your account usually annually. For heavy spenders who clear the majority of their debt every month, a scheme such as this may be worth more than a percentage point or two off your standard rate.

Another group of card users for whom headline APR is not too important is those who are making use of a balance transfer feature to move debt from a high interest card to a 0% introductory offer or longterm low rate deal. If you're transferring a balance onto a card, it's advisable not to use that card for purchases at all in order to maximise the benefit of the balance transfer offer, so again, you shouldn't be paying any interest on purchases at all and therefore it's irrelevant what figure the APR is set at.

So is APR completely unimportant? Not at all! Most people do in fact carry some debt on their cards from month to month, and obviously a lower interest rate means your debt will be costing you less. However, before plumping for the card with the lowest rate it's a good idea to think about how you plan to use your new card, and whether features such as rewards, cashback, or deals on purchases or balance transfers will outweigh the benefits of an eyecatchingly low standard rate.

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Basic Tips on Personal Finance

Do you ever wonder where your money goes every month? Does it sometimes seem as though you cannot afford to do things because your financial obligations are holding you back? If you find that you are asking yourself these sorts of questions, perhaps you should take a look at your financial situation and assess whether you are practicing good personal finance management or not. Good personal finance management spends within their income, plan for the future and solve financial problems as they arise. Poor personal finance management pay more, do without and fall behind. If you find yourself in the second category, you can do something about it. You can learn to take charge of your finances by planning your personal finances.

Planning your personal finances doesn’t always come naturally, and even if you’re just beginning to take your financial matters seriously, then you likely need a few personal finance tips.

Evaluate your current financial situation. One of the most important goals for most people is financial independence. Collect accurate information about your personal financial situation. Calculate your net worth which includes the real estate, saving and retirement accounts, and all other assets. This will help you decide how much money you can set aside for meeting future needs and goals.

A basic personal finance tip is to make a budget. A personal finance budget is information made up of your income and expenses and the more accurate this information is, the more likely you are be able to meet your goals and realize your dreams. A personal finance budget should be made for at most one year at a time and include a list of your monthly expenses.

All expenses must be included. To be sure of that go through all your paid bills, check register and credit card receipts to find expenditures that recure every month and expenditures that happen less frequently. Personal finance budgeting requires some small sacrifices. To be able to make good personal financial decisions and set priorities, you must know where your money is actually going. Start your budget and accomplish your goals.

Get an electronic bill pay. This is a very convenient way to pay your bills. You pay them electronically, by direct withdrawal from your bank account. The transaction is processed immediately. You can even link your bill pay service to your personal finance budget, so that your expenditures are automatically entered in the appropriate category. Personal financial management can be really easy.

Make an investment and finance plan. Now that the fundamental state of your personal financial security has been established, the time has come for the more prosperous part of your personal financial life. You need to make a personal finance plan of what you really want in life that money can buy. Your personal financial plan can be as simple or as detailed as you want it to be. Find out how to finally start to implement this plan and get the money to finance it. This is the long term part of your financial. This journey is the most interesting and exciting part of personal financing you can have toward financial freedom.

You can prepare for a secure personal financial future by following these simple tips. When you take control with your money, you don’t have to worry about debt taking control of you.

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5 Simple Ways To Lower Your Monthly Bills – And Save Lots Of Money!

Here you're going to learn several ways to save money every month by lowering your monthly bills.

There are lots of ways to save money, no matter how much of it you have - or don't have!

Having struggled for many years paying my own bills, I learned many ways to save money. From simple things like food, gas, and clothing, to bigger expenses, like insurance and your mortgage.

All you need to know is where to look to find the savings.

Several Ways To Save Money

The first thing you need to do is eliminate ALL of your unnecessary expenses:

• eating out on the weekends
• buying lunch at work every day
• magazine and newspaper subscriptions (especially those you can get online and at the local library)
• cable TV (you'd be amazed at how many other ways you'll find to spend your time once you get rid of cable TV)
• groceries (you can save lots of money with coupons and specials.)

It's OK to reward yourself once in a while, but if you are really looking to get out of debt faster, you owe it to yourself to save every single penny you can!

To find other ways to reduce your expenses, take a close look at your checkbook and credit card statements. You should also call your credit card companies to see if they will lower your interest rates, even if it is only for a short time.

You'll be amazed at how many ways you can save money, especially once you start looking carefully at how you spend your money every month.

Shop Around For The Lowest Prices

For those expenses you can't eliminate, it's time to start shopping around for the best prices.

Once I realized you can shop around for just about ANYTHING you spend money on every month, I learned how to save myself SEVERAL HUNDRED DOLLARS each and every month!

In fact, by shopping around I ended up saving myself more than $750 a year on car insurance alone!

The same is true of many of your monthly expenses - like long distance telephone service, internet service, all types of insurance, mortgages, and in some places even your utility bills.

It DOESN'T take any special skills. All it takes is a few clicks and you can save yourself a bunch of money in no time at all!

So, if you’d like to save yourself lots of money every month - and who doesn’t - start shopping around and looking for ways to lower your monthly bills as soon as possible. By this time next year, those dollars could add up in a way that you could begin an investment plan.

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