Family Financial Planning Part 4

I am back! Happy Tuesday! By now you should start to get a pretty good idea on what steps to take to identify expenses that are impacting your family budget. In the last few posts I shared some very specific items that should be looked at, documented and certainly discussed by the entire family especially where there are shared responsibilities.

Before I outline additional areas that dollars could be lost in; I want to acknowledge you for your efforts so far. Give yourself a pat on the back!

Next I will highlight, how these areas can help you start putting aside some cash for a major financial commitment.

Be back to you!

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Family Budget Planning Part 3

Happy Monday! Glad your back and continuing to stay with us on the Family Budget Series. In this post of the series, I will outline what is needed to examine what your own family budget looks like and/or how to get one going so that spending can come into focus as a family commitment. Finding out what is the take-home pay is a crucial element in this area. Take-home pay is what is left when you look at your pay stub, pay receipt or a direct deposit attachment where all deductions are itemized and the "NET" amount is what the value of your pay check.

This impacts the family and they need to be involved! - "The Take-Pay and the expenses tied to it could include other family members". This could be one member or ALL members. Getting them involved in a clear discussion about how the
ENTIRE family must support goals and expenses with acceptance is vital to having a healthy structure.

Ask yourself and the entire family -
"Where does our money go? Where are we spending our family pay? What can we cut out or do without once a month or twice a month?

Here is a list of things most household's have: Take a realistic eye at this and ask yourself what am I spending on these items and what can my entire family help with in getting a grip on expenses.

Necessities like food
􀂃 Clothes laundry dry-cleaning
􀂃 Car and transportation expenses: gas, oil, parking, license, plates, car repair, train fare or bus
fare
􀂃 Rent, mortgage payments, heat, electricity, phone, water, property taxes, house repair,
appliance and repair, furniture, small items for home, cleaning supplies on the yard care,
􀂃 Medical and dental expenses: doctor, dentist, drugs, hospital or clinic.
􀂃 Savings: short to medium term for something soon, a future purchase, emergencies,
investments.
􀂃 Installment payments: car, furniture, appliances, charge accounts, credit card accounts, loans.
􀂃 Pocket money, personal allowances, tobacco, beer, wine and hair care.
􀂃 Entertainment, movies and eating out Recreation, sports and equipment, club

This is just a basic list, but it should get your mind moving!!!

On my way to meet an entire family who is seeking credit clean-up help and are believing for a new home!

Have a fantastic day!

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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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