Family Budget Planning Cont'd

So, yesterday we took a close look at what it is to have and create a budget. I shared what is needed to identify the main "Obligations" that should be in the paramount in getting grounded in budget planning. A lot of my friends I have seen struggle with budget planning and it's not just the my single friends but my married ones with children. It took me years to get acquainted with creating and managing a budget. I must admit, it can be painful, but the more you work at - the better it will be, and you will discover you really have more money than you thought. So, let's outline it.

STEP 1: Figure out your true take home pay

STEP 2: Figure out your expenses

STEP 3: Figure out what you spend on "each" expense

STEP 4: Do the match up. Does your spending on each expense go over the take home?

STEP 5: Balance it. Does the expenses need to be there? Can you live without Starbucks 3 days out of the 5 days in your work week? If Christopher is in Little League next month and you need $150 for his uniform and camp - can you budget for that this month - by saving for it? Instead of emergency reckless spending the day before the Registration?

In my next post, I will outline how to structure each step. Family budgeting will save your life, your sanity and your ability to live some - if you take it to heart.

My team and I work with families seeking to buy a home and alot of time, this very same exercise is what gets them in the home when they thought they couldn't afford to become a Homeowner!

If homeownership is something you desire - you can do it! If you just want more peace of mind - you are always in control - Remember that!

Have a wonderful weekend!

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Building a Family Budget in 2012

I often get asked when I meet with clients - do people really use budgets anymore? Are they even relevant in today's society? The answer is absolutely - YES! A budget is still important, it works and can save a family or individual some stress on many levels. For the next few weeks, I will highlight budget structures that will help people identify ways to save and get a "grip" on family finances. I hope my readers, current clients and potential clients find it helpful and refreshing.

TRUTH: The average household spends approximately $500 over their income every month!

Why: Most families have obligations that never quite get in the budget like utilities, cell phone bills, trips to Starbucks, and birthday or special events. These kinds of expenses always push the money coming in over the top!

TIP: Catagorize spending even down to the dime - TRY this! Build a list under Obligations, such as the example below.

1) Obligations – list each item under headings like: home: mortgage or rent; association fees
and professional dues; insurance: health, auto, home, renters’ and life; tuition, day care;
loans: car loan, student loan, bank fees and interest; taxes, property taxes, etc.

By doing this - you get a very QUICK glimpse on where the BIG money is alotted.

Next: I will cover the next catagory to use in building your family budget.

Happy Friday! Have a blessed weekend!

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Will the Credit Markets Ever Truly Recover in 2012?

I am back to blogging about credit issues and boy have some things handicapped what most Americans have gotten very used - easy access to credit! Back in 2007 and 2008, easy credit was everywhere. When I started Get GR8T Credit, not one person I knew had a credit problem! It was as if I invented something no one would ever need - credit help....my-my how things have changed!

When I the Credit Chaos bog, I knew it was just a matter of time before the credit availability would change and it changed literally overnight! My office has received a lot of calls from people not only in my local market, but in other markets as well.
Everyone wants to know - what's next? What happens if I cannot pay my mortgage, my car loan, my credit cards? Well, you just cannot pay them. If you are vasculating every day trying to stretch money that cannot cover those expenses, you will need to overhaul your spending, really look hard at your spending, examine where you can cut some costs and begin to re-build with a plan to use less credit until your situation changes.

The credit markets will recover in time, maybe not in 2012, but in time; it could very well take into 2014 for that happen, as so much is still at stake. U.S. Federal Reserve Chairman Ben Bernanke's has been continually called on the carpet for the credit mess and the stress that it has taken on working families, especially those that have lost jobs due to the market crash. Small business even will take a super hit because cash spending has been slowed to a crawl, those that do have have access to cash are not spending much of it due to concerns of money running out. So where does that leave you? Encouraged. You should not let what happened in the past affect your future. The world will sort out this mess on its own.

The credit markets will recover and while things still a bit of mess, take this time to re-structure your household spending, pay down or settle those credit card balances and boost those credit scores!

Need help? My office specializes in helping people get back on track with their credit, we provide credit correction, debt managment, bill pay and budget structuring services. All of these services are an amazing combination to recover from a poor credit file. Get a head start for 2012 and into 2013! Be a fan of your credit - Get
GR8T Credit! Don't let anyone or anything stop you from living the life you dream of.

Good credit is a privilege, use it wisely. If you are down in this market, give us shout, we just may have a solution to get you closer to your goals!

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7 Super Easy Ways to Tackle Debt

Congratulations to you! I say that because if your reading this, you are serious about reducing your debt load. You may have been displaced over the last few years and your income suffered, you lost your job, or even your home. If you have been frustrated about your situation, there are solutions. Being consumed by debt is daunting, every time you look around, get a few dollars in your pocket, you feel like where does it go?

Here is a plan – you can see results.

1. Think it through – Debt exists because credit is used more than cash. Next time you get another credit line, use it wisely. If your already in the hole, pay off what you owe first. Credit cards and lines of credit are for emergencies, not daily use.

2. Stay out of the stores! – Buying when the mood suits you is a major mistake. Whether its in the malls or online, spending just to spend never amounts to anything more than maxed out credit cards and overdraft fees on the debit cards.

3. Build a budget! – Yes, it’s the one thing, most people hate to do, is budget. Believe it or not, a budget is a guide, a plan to use a certain amount of money to pay a certain amount of things. Its just that basic. You must get a clear view of how much is outstanding to your obligations – get clear on who is owed what. From there document it, dates due , amounts due, etc. Even document your extra spending. This stuff like the drive-thru stop at McDonalds.

4. Get focused on tools available – Find low interest rate loans, credit cards to move high balances. A lot of banks have great rates for balance transfers. Keep a close eye out for annual fees too. Sometimes a low enough interest rate is worth a small fee to get those exclusive offers.

5. Get your tail in gear! – Don’t procrastinate. Be about slashing your debt load TODAY, not tomorrow. Put that plan in motion. Don’t let anything stop you.

6. Credit cards are your friend – Do not close your credit lines! Bad move, keep everyone of those accounts open, it will limit your options and stop continued positive payment history.

7. Remain in control of your credit – Pay all obligations on time. Pay the full amount due by the due date. Do not be late on credit cards, banks will close you if a pattern of late payments is identified.

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The Truth Behind the Credit Score

The insurance industry can cancel your policy, even if you’ve never made a claim. This is because they use a system called Insurance Credit Scoring. This allows your insurance company to make assumptions about your reliability and honesty based on your credit score. These assumptions are based on the erroneous belief that there is a direct, statistical relationship between your financial history and the risk that you will be dishonest. The lower your insurance score, this assumption says, the more likely it is that you will file claims against the company, inflate claims or make fraudulent claims, or even commit arson. The credit score that is used to judge your fitness to receive insurance is based solely on the information in consumer credit reports, used in conjunction with motor vehicle records and other paperwork. From this information, the insurance company determines the risk of insuring you. Because of this process, insurance customers may receive higher premiums based only on their credit score, even if they have clean driving records. The insurance company is hoping that customers with good credit will choose to settle an incident without making a claim, saving them money. It is also believed that people with low credit are more negligent, commit more fraud, and improperly care for their homes and vehicles. The insurance industry regards the credit score as a more accurate prediction of loss than the individual’s personal insurance history. This industry wants to discourage claims and avoid paying out when claims are made. Customers who might legitimately cost them money are to be avoided and gotten rid of, even using inaccurate methods to determine this. The insurance industry is creating correlations between people who make claims and low credit, then using their own numbers to back this behavior up. If this has happened to you, the most important thing you can do is to file a complaint with your Department of Insurance. Many states have laws requiring this department to track complaints involving this kind of credit scoring. Because of this, complaining is the only way to let Insurance Commissioner know that something is wrong. You may obtain a copy of the credit report that caused your policy not to be renewed. Be sure to order it, and correct any errors that crop up, because the credit reporting agencies do make errors. Once any errors are fixed, be sure also to have the agency re-rate you. Even individuals with exemplary credit may be penalized by insurance credit rating because the agency does not calculate lending credit and insurance credit in the same way. Insurance credit rating is being used more and more as a way for the companies to save money at the expense of innocent customers. Be aware of your credit and your options if your rates go up or your policy is dropped.

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7 Strategies to increase your credit score super fast!

I received a call today from someone wanting to know if I could summarize a quick system for them to get a credit boost, what would I recommend.

Well, many people are completely ruined behind their credit card account getting slammed with 30% interest rates and outrageous late fees. But I would be remissed if I left out the suggestion to pay them down as much as possible, so here it is.

1. Pay down your credit cards. The goal is to get your balances below thirty percent of the credit limit on each of your credit cards. Many experts will tell you to pay off the card with the highest rate first. I recommend to my clients to pay down the cards that are closest to their limits.

2. Keep an eye on your credit card usage. You can skyrocket your score by limiting your charges to 30 percent or less of each cards limit. Some may find it challenging to keep track. For those individuals I recommend that you use a check register.
3. Check your credit card limits. Sometimes your credit score will be lower because a lender is showing a lower credit limit than you have. Request that the lender update their information.

4. Don't overlook your old credit cards. The more established your credit history the better. The downside is if you stop using your old credit cards the lender may stop updating your account or close it. So dust off those old cards and put them to use…even for small charges like a tank of gas will keep an an account active.

5. Gotten into a jam? A second chance could be your out. If you have been a great customer a lender will take that into consideration when you make a overdue payment. Contact the lender and explain the situation and more than likely they will excuse the late payment. It doesnt hurt to ask.

6. To agree or not to agree. The older a negative mark is on your credit report the better the chance that you will win the dispute and gain a deletion from the credit bureaus. I recommend that you dispute all negative marks on your credit. What do you have to loose. At best, something will get deleted and you gain 10 - 20 points just like that!

7. Knowledge is financial freedom. The more you learn about the credit repair process the better off you will be. How long will that take? Well, that all depends on how bad you want to gain that edge - invest in yourself!

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How to help people make better financial decisions

"Establish a 90 day Goal Plan."

How I did it: I detailed what I wanted to do and set up strategic steps to meet them such as:

• How much I wanted to save each month.
  
• What credit card would be paid first.
  
• What one thing, I wanted no matter what and how I would get the money to pay for it.
  
• Where I wanted to be in 3 months, 9 months and than 12 months.
  
• What I would do different to achieve each goal
  
• 
  
  
  
  
  •  Such as habits I knew I had to change
    
  • When I start changing them
    
  • Expected outcome
    
  • How long I would commit to each habit change
    
  • Identity all at stake to make that goal happen
  
  

Lessons & tips:

1. Be SUPER HONEST with yourself!
   
2. Think every decision through
   
3. Let emotions go
   
4. Re-evaluate people in your life that bring out the worse in you.
   
5. Find people that can help you achieve your goals!

Resources:

1. A Journal for daily writing
   
2. A workout schedule that helps you stay focused, a focused mind develops into fine tuned machine! Your body needs attention when you are goal-setting - don't ignore it!
   
3. Picture wall that shows every step how you will feel when each goal is accomplished - this is important to train your senses and your mind will follow.
   
4. Reading the paper on Sunday - see what is happening around you financially. I found learning about the financial mess help me gaining a clearer vision of what options would best suit me when I decided to invest

It took me 4 months.

It made me Incredibly Elated!

See more progress on: help people make better financial decisions

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