Lately, I have been thinking about mine and my family’s eating habits. I have come to realise that our lifestyle is making us unhealthy and costing us a lot of money.
I should have realised this sooner but better late than never.
For the past 2 years I have put on a bit of weight and so did other members of my family. If I look at our lifestyle critically, it is very clear that we are sedentary people who like to stay indoors. The kids are a little different, they have lots of energy and are always running around.Whilst they eat a lot, and boy they don’t stop eating, because they are always active doing something they don’t put on a lot of weight. Having said that, if they continue with the habit of eating a lot and they change their lifestyle as they get older, they will certainly put on a lot of weight very quickly.
So I researched the web and came up with 5 tips for a healthier lifestyle and, at the same time, to save your money as you go.
1 – Eat at home
This one is a bit obvious, as life is very busy and we have less and less time to cook at home we have a tendency to stop by the fast food shop and get a quick bite. As a matter of fact, for the past two years, we have eaten out almost every Sunday. If the average cost of the Sunday take out is $20 and we ate out, say 40 out of 52 weeks of the year, in 2 years we have spent $1600 (that’s 80 times $20).
Wow that hurts even to write it down.
If we stop, or at least reduce the amount of Sunday’s take out, we can not only save money but also get healthier. This is because the take outs are full of fat. All of the fat is transformed into energy which is never burnt, because of the sedentary lifestyle, and tuned into fat. That simple!
2 – Change your shopping list
Children are amazing, we love them to bits and always want to do something nice for them. That includes buying things in the supermarket that they like. Ice creams, chocolates and many other things.
You know, the funny thing is that we are eating those things with the children. We often catch ourselves eating the children’s ice cream once they have gone to bed.
That is really bad. The answer is obviously, stop eating that stuff and buy only the amount that kids will eat in one go. Perhaps give them to the kids as a treat only on the groceries day. This should help us to stop eating them and to reduce the amount of unhealthy things the kids eat.
On the other hand, if we reduce the amount of packaged food that we buy we can also save lots of money on the way. It is important to note that these packaged sweet things we buy for the kids are not only unhealthy but also very expensive. So there is an opportunity to save money by buying different treats that are healthier and cheaper.
3 – Stop dieting
Are you spending your money on expensive shakes or dieting programs? If you are then I encourage you to take a look at their effectiveness. Are they really working?
These diet programs often encourage you to eat healthier in order to help the effectiveness of the program. If you put in practice the first two tips it is likely that you can ditch the diet, save your money and continue to loose weight.
4 – Stop going to the gym.
Gym is very, very expensive. Not to mention that many people have gym membership but don’t go to the gym as often as they should.
For about two years my wife and I had a gym membership that was only used about once or twice a month. As we got towards the end of the second year of our membership we decided to stop and replace it we walking three times a week (that was before we had kids).
We saved a lot of money and lost more weight because we were walking more often than before.
The gym was a waste of money and was not delivering the expected results. Having said that, if you use your gym as often as you should, it can be a great tools to help you to get fit, loose weight and live a healthier life style. The trick is in taking a critical look at how often you use your gym and evaluate that against the membership cost and the results you are getting.
5 – Quit bad habits
We are living today in a very stressful world. Credit cad debts, the threat of unemployment, financial crises, unemployment for some of us and, if you are in Australia, the increase in interest rates and the cost of living.
As a result of all of those stresses, we may have some habits to help us to relax. they may be smoking, drinking or any other form of activity to take our minds out of those things that stress or upset us.
Trying to deal with some situations once and for all will not only help us so solve our problems but will also save us lots of money. Cigarettes and alcoholic beverages are very expensive and could be costing you thousands of dollars every year. not to mention that they don’t actually help you to solve the problems you are trying to solve.
In conclusion
Taking a critical look at your financial situation and habits is the first step for a a better life style and some extra money in the bank. It doesn’t take long for you to review your shopping list, or to calculate how often you spend on take outs.
Give it a go, you may get a pleasant surprise.
Showing posts with label personal finances. Show all posts
Showing posts with label personal finances. Show all posts
Tuesday, December 7, 2010
Saturday, November 27, 2010
Videos on how to be successful
The following videos provide quick and valuable tips on how to be successful.
Stephen Covey on setting priorities video
The 4 Disciplines of Execution
Stephen Covey on setting priorities video
Setting priorities
Quest for success: get very clear on how you intend to live your life
Quest for success
The 4 Disciplines of Execution
Friday, November 26, 2010
Ten habits of highly successful people
There are many different sayings that reinforce the importance of learning from others. It can save a lot trouble and can help you to achieve your objectives faster.
I have compiled a list of 10 habits, or qualities, of highly successful people.
1. Successful people look to see opportunities where others see nothing
Successful people are always looking for opportunities. They don’t listen to the people that discourage them. They objectively look at every business opportunity even when others see nothing.
That does not mean that their ideas always work out. However they are willing to think outside the box and to try things out.
You may start thinking that you are just an ordinary person that doesn’t know how to think outside the box or that everyone else is more clever than you. Don’t think that way. Looking for opportunities is a skill that you should practice and learn with experience.
Personal finances application: Look for opportunities to make extra money. It can be through opening a small online business, a blog or many other ways.
The following articles show you a few ideas ion how to make extra money:
2. Successful people are solutions focused
Successful people are always trying to find solutions to problems. They don’t dwell on the problem, they understand it and look for ways to solve the problem.
Personal finances application: Do you have financial problems? Maybe you have a bit of debt that you want to get rid of or you struggle to follow your budget. Stop focusing on the problem, stop saying to yourself that you have a problem and make a list of possible solutions.
Once you have that list prioritise it and work you way through your ideas in order to find solutions to your problems.
3. Successful people create their own success
This is key to anyone that wants to achieve anything in life. Success won’t come your way, you need to chase it, to create your own success.
What that means is that you will not wait without action to achieve your dreams. Successful people are action oriented, they look for opportunities and they take action. This way you will attract success towards you.
Personal finances application: Define what financial success means to you and write it down. make this list your objective and work hard towards achieving it.
The following articles contain great tips on how to pursue your own success.
4. Successful people are fearful but they take action anyway
Successful people are just like you. They think about the things that can go wrong and they are fearful of them. However they are not controlled by their fears. Being brave is taking action despite fears. That is exactly what successful do.
Now, don’t go crazy on this. You need to evaluate your actions and risks involved. Look at reach potential risk and think about ways to remedy those risks if they ever evaluate. Once you do this you are ready to take action.
With a bit of planning and risk assessment you can take action despite your fears.
Personal finances application: Are you afraid of starting your own business, maybe a blog to start with? Maybe you are afraid that your action won’t bring the results you expect.
If you have made a list of potential solutions to your financial problems (from item 2 above) then evaluate the possible outcome of each option and think about ways to remedy those risks if they ever eventuate.
Once you have done that you are ready for action.
The following article relates to risk taking when investing in shares:
5. Successful people take responsibility for their actions and outcomes
Successful people take responsibility for their actions. If they are responsible for the action of others such as their employees for example, they also take responsibility for those.
They don’t blame anyone else. If you want to be successful you need to take a critical look at your actions and their outcomes and take responsibility for them.
If you stop blaming you open doors to start learning. Once you say that something is your responsibility you are ready to evaluate what happened and learn from it.
Personal finances application: Can you think of anything you have done in the pats to address your financial issues and the outcome wasn’t quite what you expected? Maybe you blamed somebody else, the world economy, the customers that didn’t buy your product of the investment that didn’t go quite right.
Look at what happened and take responsibility for the outcome. You step is t them look at what happened and learn from it.
The following article discusses the topic of taking responsibility for your personal finances:
6. Successful people look for ways of maximizing their potential
Successful people know they shortcomings and the areas that they need to improve. They know that they are as talented as anyone else and that there is lots of potential for improvement.
If you want to be successful you need to recognize the areas that you need to improve and work on them. Successful people are always improving themselves in whatever field they are involved in.
Personal finances application: Take a critical look at your financial skills. Can you see any areas that need improvement? Maybe you want to learn more about basic accounting or real estate investment.
Focus on the fact that you know that you can address those areas and start working on it.
The following link takes you t an article about basic accounting. Anyone on the road to financial independence needs to control basic accounting principles and know how to apply them in real life.
7. Successful people are productive
Successful people are always busy. They are always doing something. They don’t sit around doing nothing. They are focussed on their objectives and they work hard towards achieving it.
It is very important to live a balanced life as well. If you have a family it is important to spend time with them. Being focused and action oriented does not mean that it is the only thing you do in life. it means that when it is time for work you are doing something and working hard towards achieving your objectives.
It is important to take breaks and to live a balanced life so you can enjoy all areas of your life.
Personal finances application: Create a action calendar. Mark the days and the time where you will be working towards achieving your financial objectives and stick to it.
Be flexible and adapt your calendar to suit all aspects of your life including the time you spend at work and with your family.
The following article discusses the topic of taking action in order to achieve your objectives:
8. Successful people develop relationships with like-minded people
Successful people relate to people that are like-minded and that will encourage them to achieve their objectives.
Look for people that want to achieve the same objectives as you and develop and relationship with them.
This does not mean that you will be calling a few people and then to be your friend. That would be pathetic. You can do this by looking for like minded people on the internet and read about what they do and if possible communicate with them.
This can be done by following the blogs of like minded people, following them on twitter and facebook. It may not look like you are developing relationships with them but you are. You are listening to what they have to say, you are commenting on their blogs and exchanging ideas. That is developing a relationship.
Personal finances application: Do you want to be financially independent one day? If yes them follow me on this blog, twitter and facebook. Comment on the articles on this blog and I will make sure to reply to your comments as quickly as I can.
The following links will take you to my twitter and facebook accounts:
The following links will take you to some other blogs about personal finances. If you like what the other authors say then follow them or comment on their blog posts.
9. Successful people innovate rather than imitate
Successful people don’t copy what other people do, they innovate, they look for opportunities and improve on what others do.
Microsoft for example, they keep on buying other companies and they improve their software and make tons of money by improving them.
Look for ideas of what other people have done and look for opportunities to improve or innovate what others have done.
Personal finances application: Look for small business opportunities. Maybe you can teach someone or provide a service. Look at what other people are doing and improve on it. Innovate. You can teach using a different, improved technique or resources.
10. Successful people have a clear vision for what they want for their lives and work towards achieving it.
If you want to achieve anything in life, the first step is knowing what you want to achieve.
Write down your dreams and objectives clearly and concisely. Then visualise them, memorise them and focus on the fact that you know that you can achieve it.
Personal finances application: Write down your personal finances objectives. Make that your master list, perhaps set yourself some dates and work towards achieving them.
Make the list a dynamic one that changes as you achieve your objectives or that changes as your life changes.
Include long term and short term objectives and have an action plan.
The most important of it all is knowing what to achieve and to take action towards achieving your financial objectives.
I have compiled a list of 10 habits, or qualities, of highly successful people.
1. Successful people look to see opportunities where others see nothing
Successful people are always looking for opportunities. They don’t listen to the people that discourage them. They objectively look at every business opportunity even when others see nothing.
That does not mean that their ideas always work out. However they are willing to think outside the box and to try things out.
You may start thinking that you are just an ordinary person that doesn’t know how to think outside the box or that everyone else is more clever than you. Don’t think that way. Looking for opportunities is a skill that you should practice and learn with experience.
Personal finances application: Look for opportunities to make extra money. It can be through opening a small online business, a blog or many other ways.
The following articles show you a few ideas ion how to make extra money:
2. Successful people are solutions focused
Successful people are always trying to find solutions to problems. They don’t dwell on the problem, they understand it and look for ways to solve the problem.
Personal finances application: Do you have financial problems? Maybe you have a bit of debt that you want to get rid of or you struggle to follow your budget. Stop focusing on the problem, stop saying to yourself that you have a problem and make a list of possible solutions.
Once you have that list prioritise it and work you way through your ideas in order to find solutions to your problems.
3. Successful people create their own success
This is key to anyone that wants to achieve anything in life. Success won’t come your way, you need to chase it, to create your own success.
What that means is that you will not wait without action to achieve your dreams. Successful people are action oriented, they look for opportunities and they take action. This way you will attract success towards you.
Personal finances application: Define what financial success means to you and write it down. make this list your objective and work hard towards achieving it.
The following articles contain great tips on how to pursue your own success.
4. Successful people are fearful but they take action anyway
Successful people are just like you. They think about the things that can go wrong and they are fearful of them. However they are not controlled by their fears. Being brave is taking action despite fears. That is exactly what successful do.
Now, don’t go crazy on this. You need to evaluate your actions and risks involved. Look at reach potential risk and think about ways to remedy those risks if they ever evaluate. Once you do this you are ready to take action.
With a bit of planning and risk assessment you can take action despite your fears.
Personal finances application: Are you afraid of starting your own business, maybe a blog to start with? Maybe you are afraid that your action won’t bring the results you expect.
If you have made a list of potential solutions to your financial problems (from item 2 above) then evaluate the possible outcome of each option and think about ways to remedy those risks if they ever eventuate.
Once you have done that you are ready for action.
The following article relates to risk taking when investing in shares:
5. Successful people take responsibility for their actions and outcomes
Successful people take responsibility for their actions. If they are responsible for the action of others such as their employees for example, they also take responsibility for those.
They don’t blame anyone else. If you want to be successful you need to take a critical look at your actions and their outcomes and take responsibility for them.
If you stop blaming you open doors to start learning. Once you say that something is your responsibility you are ready to evaluate what happened and learn from it.
Personal finances application: Can you think of anything you have done in the pats to address your financial issues and the outcome wasn’t quite what you expected? Maybe you blamed somebody else, the world economy, the customers that didn’t buy your product of the investment that didn’t go quite right.
Look at what happened and take responsibility for the outcome. You step is t them look at what happened and learn from it.
The following article discusses the topic of taking responsibility for your personal finances:
6. Successful people look for ways of maximizing their potential
Successful people know they shortcomings and the areas that they need to improve. They know that they are as talented as anyone else and that there is lots of potential for improvement.
If you want to be successful you need to recognize the areas that you need to improve and work on them. Successful people are always improving themselves in whatever field they are involved in.
Personal finances application: Take a critical look at your financial skills. Can you see any areas that need improvement? Maybe you want to learn more about basic accounting or real estate investment.
Focus on the fact that you know that you can address those areas and start working on it.
The following link takes you t an article about basic accounting. Anyone on the road to financial independence needs to control basic accounting principles and know how to apply them in real life.
7. Successful people are productive
Successful people are always busy. They are always doing something. They don’t sit around doing nothing. They are focussed on their objectives and they work hard towards achieving it.
It is very important to live a balanced life as well. If you have a family it is important to spend time with them. Being focused and action oriented does not mean that it is the only thing you do in life. it means that when it is time for work you are doing something and working hard towards achieving your objectives.
It is important to take breaks and to live a balanced life so you can enjoy all areas of your life.
Personal finances application: Create a action calendar. Mark the days and the time where you will be working towards achieving your financial objectives and stick to it.
Be flexible and adapt your calendar to suit all aspects of your life including the time you spend at work and with your family.
The following article discusses the topic of taking action in order to achieve your objectives:
8. Successful people develop relationships with like-minded people
Successful people relate to people that are like-minded and that will encourage them to achieve their objectives.
Look for people that want to achieve the same objectives as you and develop and relationship with them.
This does not mean that you will be calling a few people and then to be your friend. That would be pathetic. You can do this by looking for like minded people on the internet and read about what they do and if possible communicate with them.
This can be done by following the blogs of like minded people, following them on twitter and facebook. It may not look like you are developing relationships with them but you are. You are listening to what they have to say, you are commenting on their blogs and exchanging ideas. That is developing a relationship.
Personal finances application: Do you want to be financially independent one day? If yes them follow me on this blog, twitter and facebook. Comment on the articles on this blog and I will make sure to reply to your comments as quickly as I can.
The following links will take you to my twitter and facebook accounts:
The following links will take you to some other blogs about personal finances. If you like what the other authors say then follow them or comment on their blog posts.
9. Successful people innovate rather than imitate
Successful people don’t copy what other people do, they innovate, they look for opportunities and improve on what others do.
Microsoft for example, they keep on buying other companies and they improve their software and make tons of money by improving them.
Look for ideas of what other people have done and look for opportunities to improve or innovate what others have done.
Personal finances application: Look for small business opportunities. Maybe you can teach someone or provide a service. Look at what other people are doing and improve on it. Innovate. You can teach using a different, improved technique or resources.
10. Successful people have a clear vision for what they want for their lives and work towards achieving it.
If you want to achieve anything in life, the first step is knowing what you want to achieve.
Write down your dreams and objectives clearly and concisely. Then visualise them, memorise them and focus on the fact that you know that you can achieve it.
Personal finances application: Write down your personal finances objectives. Make that your master list, perhaps set yourself some dates and work towards achieving them.
Make the list a dynamic one that changes as you achieve your objectives or that changes as your life changes.
Include long term and short term objectives and have an action plan.
The most important of it all is knowing what to achieve and to take action towards achieving your financial objectives.
Thursday, November 25, 2010
How to make some extra money
I have read quite a few articles about how to make some extra money. There is a wide range of advice that goes from saving, to keep the money in your pocket, to using your credit card to make money through rewards.
Here are a few of my favorite tips.
Create ad supported websites or blogs
This can be a bit time consuming and it can take a while to give you the return you want. Nevertheless there is a lot of potential for long term, enjoyable earnings.
An easy way to start is by using the Google’s blogger site. It will take literally a few minutes to setup a blog, and then you can add a variety of monetisation strategies including adsense, chitika ads and more.
Sell your old stuff
A garage sale can put some money in your pocket and, at the same time, help you to get rid of your old stuff.
My neighbor does at least 2 garage sales a year and often makes more than $1000 from them.
The kids also like to join in the fun and sometimes they sell drinks for $.50c.
It is great fun!
Resell items
Do a little research online and find which items are on demand and how much you can get by selling them online. Once you have your little list go shopping. Buy those items in garage sales or cheap shops and resell them online for a profit.
Don’t forget to including postage when you calculate how much you need to charge for your items.
Offer your service to others
There are many people that need different types of services. Lawn mowing, pet sitting, grocery shopping and more. Try offering your services through your local paper and you can probably make a few bucks from it.
Use your current job skills
Take what you do in your current job and consider offering the same service to others during the weekend or night time. A similar option is to teach what you know to others.
Telecommute, car pooling
Make money by saving the money you spend in gas. Speak to your employer about the possibility of telecommuting or speak to your colleagues about car pooling.
Flip websites
If you have the technical skills then create websites with traffic and income potential and flip it. Have a look at flippa.com for a few ideas.
Sell photos online
Anyone cam get out there in the great outdoors and take some good quality pictures. During the weekend take your camera with you, take a few pics and sell them online.
Before you go out taking the pictures do a little research online to find out the topics that are in demand. This can help you to take targeted pictures which will improve your sales potential.
Take a real estate course and become a real estate agent
I know this sounds a little wild but it is definitely an idea with huge earning potential. if you are a stay at home mum talk to your partner about take weekend courses on real estate selling and get yourself licensed.
Once you do that you can start an online real estate agency which has less overheads to you and therefore you charge a little les commission from your customers every time you sell.
People already do that on eBay. There is nothing preventing you from creating an online shop to sell, well to sell properties.
If you do that make sure you do your research to get yourself insured and make sure that you follow all of the required legal obligations.
Here are a few of my favorite tips.
Create ad supported websites or blogs
This can be a bit time consuming and it can take a while to give you the return you want. Nevertheless there is a lot of potential for long term, enjoyable earnings.
An easy way to start is by using the Google’s blogger site. It will take literally a few minutes to setup a blog, and then you can add a variety of monetisation strategies including adsense, chitika ads and more.
Sell your old stuff
A garage sale can put some money in your pocket and, at the same time, help you to get rid of your old stuff.
My neighbor does at least 2 garage sales a year and often makes more than $1000 from them.
The kids also like to join in the fun and sometimes they sell drinks for $.50c.
It is great fun!
Resell items
Do a little research online and find which items are on demand and how much you can get by selling them online. Once you have your little list go shopping. Buy those items in garage sales or cheap shops and resell them online for a profit.
Don’t forget to including postage when you calculate how much you need to charge for your items.
Offer your service to others
There are many people that need different types of services. Lawn mowing, pet sitting, grocery shopping and more. Try offering your services through your local paper and you can probably make a few bucks from it.
Use your current job skills
Take what you do in your current job and consider offering the same service to others during the weekend or night time. A similar option is to teach what you know to others.
Telecommute, car pooling
Make money by saving the money you spend in gas. Speak to your employer about the possibility of telecommuting or speak to your colleagues about car pooling.
Flip websites
If you have the technical skills then create websites with traffic and income potential and flip it. Have a look at flippa.com for a few ideas.
Sell photos online
Anyone cam get out there in the great outdoors and take some good quality pictures. During the weekend take your camera with you, take a few pics and sell them online.
Before you go out taking the pictures do a little research online to find out the topics that are in demand. This can help you to take targeted pictures which will improve your sales potential.
Take a real estate course and become a real estate agent
I know this sounds a little wild but it is definitely an idea with huge earning potential. if you are a stay at home mum talk to your partner about take weekend courses on real estate selling and get yourself licensed.
Once you do that you can start an online real estate agency which has less overheads to you and therefore you charge a little les commission from your customers every time you sell.
People already do that on eBay. There is nothing preventing you from creating an online shop to sell, well to sell properties.
If you do that make sure you do your research to get yourself insured and make sure that you follow all of the required legal obligations.
Wednesday, November 24, 2010
Reasons to say NO to credit
It is very easy to get credit these days. Many credit card companies offer introductory rates that are very attractive, combine it with a culture that encourages to spend money then there is potential for a personal finances disaster.
Our society seems to place value on the things we have and not who we actually are. I observe this whenever I go. People compare the cars they drive, the school the kids go to or the clothes they wear. It is ridiculous. This encourages people to purchase stuff using credit.
Here are a few reasons why you should say no to credit.
Self Control
Lack of self control when dealing with your finances can end up in financial disaster. Exercising self control in financial matters can help you to achieve other things in life such as weight loss or the endurance to achieve very difficult goals.
Having self control is very important because it can help us to achieve or dreams. Financial self control can help us to buy a house, to go on holidays (fully paid with cash of course) and to stay out of trouble that can come from unsecured debt.
Using credit means you are not following your budget
Budgeting does not need to be complex. All you need is to do some simple planning and track your expenses. If you are using your credit card to finance everyday purchases then you are not following your budget.
If you are using your credit card to help with your cash flow then it is likely that you are spending more than what you earn.
Get those expenses under control, find other streams of income and get your budget on the black.
Whatever you do avoid using credit to finance everyday purchases.
If you want to learn how to create a budget and stick to it then click here.
Credit card interest rates are very high
The average credit card will charge over 20% pa interest. That means that if you owe $5000 over the course of one year you will pay $1000 in interest. That is almost $100 a month just for interest. Again just for the interest.
These days $5000 in a credit card balance is low. Creditcards.com says that average credit card debt per household is $15,788. If you are paying 20% interest on that, it is an amazing $3157 per year. Imagine what you could do with all of that money.
Poor financial habits can impact your personal relationships
Money is often the reason that couples fight. it is a very touchy subject especially if the couple is not working together. Budgeting for the family should be done with the family. If one person tries to enforce a budget the chances of success are very low.
Using credit cards can lead to bankruptcy
In the worst case scenario, if you spend too much and then cannot repay it you may have to declare bankruptcy which can affect your credit rating for up to 10 years. Prevention is better than cure.
Debt free brings peace of mind
Being in debt is very stressful. You are constantly worrying about your cash flow, making your payments and when you will be debt free,
Not having any debt brings an amazing peace of mind because you don’t have to worry about paying interest and you are in control of your cash flow. being debt free lets you worry about other things such as when you go to the beach next or how you are going to achieve your next financial objective ( not with credit please).
Conclusion
Credit card can be useful in case you are caught in a emergency situation without an emergency fund. Apart from that there are plenty of reasons for staying away from debt.
If you cannot afford to buy something with cash then you cannot afford to buy it with credit, then just don’t buy it. This article provides a few tips on how to avoid credit card debt.
Become your own financial hero by staying away from debt.
Our society seems to place value on the things we have and not who we actually are. I observe this whenever I go. People compare the cars they drive, the school the kids go to or the clothes they wear. It is ridiculous. This encourages people to purchase stuff using credit.
Here are a few reasons why you should say no to credit.
Self Control
Lack of self control when dealing with your finances can end up in financial disaster. Exercising self control in financial matters can help you to achieve other things in life such as weight loss or the endurance to achieve very difficult goals.
Having self control is very important because it can help us to achieve or dreams. Financial self control can help us to buy a house, to go on holidays (fully paid with cash of course) and to stay out of trouble that can come from unsecured debt.
Using credit means you are not following your budget
Budgeting does not need to be complex. All you need is to do some simple planning and track your expenses. If you are using your credit card to finance everyday purchases then you are not following your budget.
If you are using your credit card to help with your cash flow then it is likely that you are spending more than what you earn.
Get those expenses under control, find other streams of income and get your budget on the black.
Whatever you do avoid using credit to finance everyday purchases.
If you want to learn how to create a budget and stick to it then click here.
Credit card interest rates are very high
The average credit card will charge over 20% pa interest. That means that if you owe $5000 over the course of one year you will pay $1000 in interest. That is almost $100 a month just for interest. Again just for the interest.
These days $5000 in a credit card balance is low. Creditcards.com says that average credit card debt per household is $15,788. If you are paying 20% interest on that, it is an amazing $3157 per year. Imagine what you could do with all of that money.
Poor financial habits can impact your personal relationships
Money is often the reason that couples fight. it is a very touchy subject especially if the couple is not working together. Budgeting for the family should be done with the family. If one person tries to enforce a budget the chances of success are very low.
Using credit cards can lead to bankruptcy
In the worst case scenario, if you spend too much and then cannot repay it you may have to declare bankruptcy which can affect your credit rating for up to 10 years. Prevention is better than cure.
Debt free brings peace of mind
Being in debt is very stressful. You are constantly worrying about your cash flow, making your payments and when you will be debt free,
Not having any debt brings an amazing peace of mind because you don’t have to worry about paying interest and you are in control of your cash flow. being debt free lets you worry about other things such as when you go to the beach next or how you are going to achieve your next financial objective ( not with credit please).
Conclusion
Credit card can be useful in case you are caught in a emergency situation without an emergency fund. Apart from that there are plenty of reasons for staying away from debt.
If you cannot afford to buy something with cash then you cannot afford to buy it with credit, then just don’t buy it. This article provides a few tips on how to avoid credit card debt.
Become your own financial hero by staying away from debt.
Tuesday, November 23, 2010
Personal finances management for when you are broke, debt consolidation home equity loans
It can be very difficult to budget when you are under financial stress. The following tips are aimed to us to budget when lacking a bit of cash.
Avoid getting evicted
It is very important to address immediate issues such as rental or mortgage payments.
if you are short on cash to pay for these bills then take a look at other bills you have to pay, such as electricity and mobile phone, and try to call the other companies and delay the payment of those bills in order to pay for your mortgage or rent.
Review your credit cards
Take a look at your credit cards and their due dates. A few months ago I was paying my credit card every time I got paid and I couldn’t figure out why I was short of cash before the next pay came. On top of that I couldn’t figure out why my credit card debt was not going down.
Turns out that I was putting too much cash into the credit cards and when I ran out of cash at the end of the pay period I used the credit cards again and the debt was never paid off and I was always running out of cash.
Now that was stupid. Take a look at the due dates of your credit cards and ensure that they are paid on time but, depending upon your circumstances you may be able to reschedule the dates you pay your credit cards in order to free up some cash for other obligations.
Just make sure you pay at least the minimum amount by the due date.
An couple of options to help you to pay off your credit card debt is debt consolidation and home equity loans.
With debt consolidation you can consolidate all of your unsecured debts into one payment that should be easier to afford.
If you have enough home equity you can also look at taking that equity out and use it to pay off your credit card debts. This is often a good idea because mortgage interest rates are much lower then credit card rates.
There are a few options to help you, do your research and take action.
Avoid getting evicted
It is very important to address immediate issues such as rental or mortgage payments.
if you are short on cash to pay for these bills then take a look at other bills you have to pay, such as electricity and mobile phone, and try to call the other companies and delay the payment of those bills in order to pay for your mortgage or rent.
Review your credit cards
Take a look at your credit cards and their due dates. A few months ago I was paying my credit card every time I got paid and I couldn’t figure out why I was short of cash before the next pay came. On top of that I couldn’t figure out why my credit card debt was not going down.
Turns out that I was putting too much cash into the credit cards and when I ran out of cash at the end of the pay period I used the credit cards again and the debt was never paid off and I was always running out of cash.
Now that was stupid. Take a look at the due dates of your credit cards and ensure that they are paid on time but, depending upon your circumstances you may be able to reschedule the dates you pay your credit cards in order to free up some cash for other obligations.
Just make sure you pay at least the minimum amount by the due date.
An couple of options to help you to pay off your credit card debt is debt consolidation and home equity loans.
With debt consolidation you can consolidate all of your unsecured debts into one payment that should be easier to afford.
If you have enough home equity you can also look at taking that equity out and use it to pay off your credit card debts. This is often a good idea because mortgage interest rates are much lower then credit card rates.
There are a few options to help you, do your research and take action.
Thursday, November 18, 2010
A few habits that are keeping you in debt
There are certain habits that we may have that unconsciously prevent us from paying off our debt and getting ahead.Following are seven habits that may be holding us back from paying off debt and getting back into the black. Remember debt matters, it is important to get ahead in order to turbo charge you journey into financial independence.
Not knowing your account balance
It is very important to keep track of the balance in your bank account. This is especially true is you know that the balance is a little low.
Banks will allow you to overdraft on your bank account but they will charge you very, very high overdraft fees.
It is therefore very important to watch your account balance and ensure that it remains in the black to avoid hefty fees.
Click here learn more on how to organise your finances with online banking.
Paying too much in fees
Fees, fees, fees. Banks charge us lots of fees to access our own money. That makes very little sense to me. If you have several different accounts, consider consolidating them into one, this could save you lots of money in fees.
Nowadays many banks advertise accounts with no fees. You have to be very clear because most of the time there are conditions attached to a no fee account. These condition could include a minimum monthly deposit amount r a maximum number of monthly transactions.
The key is in researching the various options and organising your bank accounts in a certain way to save your own money.
Paying only the minimum amount
If you have credit card debt, the only way to pay it off quickly, and to save lots of money in interest, is to pay more than the minimum monthly payment amount.
The banks are not interest in you paying off your debt. That is why they only want you to pay the minimum payment amount. They will keep on increasing your credit limit so long as you can afford to pay the minimum amount.
Don’t fall into this trap, do all that you can to pay more and reduce that credit card balance as soon as you can.
Click here to learn how to avoid credit card debt.
Taking credit card cash advances
We all know that getting a cash advance in our credit cards is a really bad idea.
When you do a cash advance you not only pay a lot more interest on it but you also start paying that interest from day one. The banks usually don’t give you interest-free periods for cash advances.
Conclusion, avoid cash advances as much as possible.
Not bargaining for the best deal
This can be a bit tricky but it has the potential of saving you quite a bit of money. Call your debtors and ask them to lower your interest rate. The banks want your business and with the increase in competition amongst the banks it is likely that you can succeed in negotiating a better deal with your current bank.
Ask for options. These days many banks offer credit cards with a set period of very low, or no interest at all.
There are credit cards now that offer you the first 6 months interest free for balance transfers. This can be a great help to turbo charge you payments and get the most out of your own money.
One word of warning. If you are looking at these credit cards look at the conditions and at the interest rate you will pay once the initial period of low interest rate is over. Some of them will charge a much higher interest rate than other cards so do your research before signing on the dotted line.
Not knowing where your money is going
One of the biggest mistakes one can make in personal finances is not knowing where your money is going.
Get a budget going, use your online banking to export your transactions into a spreadsheet or a personal finances software and ensure to track where your money is going.
Set goals to pay off your debt and track your progress against your goals.
Click here to learn how to create a budget and stick to it.
It may feel like debt is here to stay for a long time. This does not need to be true. The biggest mistake you can make is complacency. Take control of your finances so you can be out of debt as soon as possible,
Wednesday, November 17, 2010
Save your money shopping online
Online retailers are able to offer you more discounts than the normal shop because they don’t have the overheads of paying for rent and other expenses related to having a physical building.
Compare prices and reviews
It is very easy to compare prices online. You get to figure out where the best deals are from the comfort of your home. There are websites that can help you with comparing prices.
The internet also gives you the ability to look at product reviews before you go ahead with the purchase. It can be very helpful to find out what the others are saying about the product you are planning to buy.
Free shipping
Online shopping not only saves you the money you would pay for the petrol to get to a from the shops, some retailers also offer free shipping depending upon what you are purchasing. Make sure the price of the item has not been inflated to cover the costs.
Look for discount codes
Up until a few months ago I did not know about the huge amount of discount codes available on the internet. Look for coupons from the retailers you are likely to buy from. This can also save you a bit more on top of the other saving you are making if you shop online.
Buy bulk and save
Many online retailers offer you extra savings if you buy in bulk. Think about any future use of the product you are buying and consider making extra savings buy bulk buying. Many online shops offer you free shipping if you buy more than a certain quantity of the product. Do the numbers, consider your needs and save!
Auction
You probably know eBay. There are other online auction sites that offer you the possibility of bidding for a particular item. Online auctions offer you the potential to save lots of money through the bidding process. Just make sure you don’t get caught up in the process and end up paying too much for the item you are looking for.
Conclusion
If you are still hesitant with online shopping, start using the internet as a way to research and compare prices. You will probably be shopping online, and saving your cash, sooner than you think.
Tuesday, November 16, 2010
How to turn income into wealth
The secret to financial independence is to turn your income into wealth. In other words, in order to be wealthy you need to take what you earn and make it work for you instead of you constantly working for money.This short blog post will give you just an overview of the topic, you need to research and learn more about it. As you research you will continually find different ways of making your money work for you.
Here is how it works. Earned income from your job (whatever is left after your expenses) is saved and then invested into assets which then gives you passive or portfolio income. Passive income is income you get from rental properties or money you earn without having to work for it. Portfolio is the kind of income from earn from paper assets as dividends paid to you.
Once you earn the passive income, you invest it into assets which buy you more assets. As you accumulate enough passive income you then use it to pay for your lifestyle expenses such as big TVs, vacations, etc…
The best part of having passive and portfolio income is that your money is working for you so you don’t have to go to work to earn the money.
Each month your assets pay for your bills and buy you more assets therefore increasing your wealth even further.
That is the key to wealth, use your earned income to buy assets and then income form the assets to buy more assets. Each of your assets function as a stream of income that keeps on generating you more and more wealth.
Wednesday, November 3, 2010
The Australian interest rate is up, the average bloke and the Australian prosperity
Yesterday the Reserve Bank of Australia decided to increase the interest rates by 0.25% once again. The banks already started to move with the Commonwealth Bank increasing their rate by almost twice as much as the RBA increase.
The government then starts to make a lot of noise, the shadow treasurer continues to blame the government and the average bloke feels the pinch.
I must confess that I feel very fortunate. I have never lost any job that I have ever had and, in fact, I took advantage of the low interest rates back in 2008 and bought our family home.
When I did buy our house I knew that interest rates were low and that they would eventually go up. I can;t help think however that if you were not prepared or did not plan for this you will probably be feeling the pinch. And to make matters worse the Reserve Bank says that the interest rates will continue to go up.
Australia is apparently doing very well, the resources sector seems to be keeping the economy going. Now the big question is, how am I supposed to be taking advantage of the resources boom if I don’t work in the resources sector? My industry is not even remotely linked to mining and I don’t have extra money in my pocket.
So explain to me, if Australia is doing so well and we need to contain inflation I want to know how most of the population who is not involved in the resources industry is supposed to be coping with the pressure?
Interest rates are up, groceries prices are up, electricity is a total absurd, council rates are up, petrol is also ridiculous and last year I got only 4% increase in my pay which has been absorbed already higher cost of living.
So if Australia is doing so well and we need to increase rates why is it that myself and the friends I talk to have less money now than this time last year. Why is it that $300 per week is not enough to buy groceries for a family of four?
The experts will probably say that the reason I have a job and that I even got a pay increase last year is because of the resources sector, that might be the case. They may also point out that many people lost their jobs. I feel for them, I really do. But now that employment figures are up, interest rates are going up and so is the cost of living, how is it that I am going to benefit from it? All that is happening to me is that I have less and less money due to the increase in the cost of living.
I will continue to manage my finances and to strive to do well. However I would like someone to tell me how is it that I will benefit from the resources boom? All I can see is financial doom and gloom for the average Australian bloke who is not involved in the mining industry.
Any comments?
Tuesday, July 27, 2010
The science of getting rich - how riches come to you
We continue in our journey to look at the timeless advice contained in the book "Science of Getting Rich" by Wallace D. Wattles.
This articles looks at the chapter regarding how riches come to you. It is one of the most inspiring and insightful articles for anyone reading the book.
This articles looks at the chapter regarding how riches come to you. It is one of the most inspiring and insightful articles for anyone reading the book.
Wattles makes a very good point in this chapter: "...give to every person more than you take from him". This is simply the best advice anyone could give me.
It does not matter whether you run your own business, you work for someone else. When dealing with anyone, give more than you take. If you do that, your actions will return to you, many times over.
If you give to anyone more in use value than in cash value, then you are adding to the lives of the people you are dealing with.
If you are engaged in a business transaction, make sure that whatever you are selling is worth more in use value than what you are getting. If you are a mechanic, ensure that your work is reliable and addresses the needs of your customers.
This principle applies to employees of an organisation as well. If you are working for someone else, make sure that you always go the extra mile. Don't just do what you are asked to do. Always do a little more, or do it a little better. Understand the reasons for your task and deliver more.
Employers, generally, are not seeking to exploit you. All they want is to get more in use value than what they give you in cash value. If you follow this principle, you can be sure that you will attract more cash to you. Either from your current employer or from someone else that is contact with you and knows that you always over deliver.
If you apply the principles in this article you will eventually expand your business, you will get the promotion that you want or the new job. People will know that when they deal with you they get more in use value than what they pay you in cash. They will always come back for more.
Monday, July 26, 2010
Debt consolidation
Debt consolidation means taking out one loan to pay off others. One of the main benefits of taking out a debt consolidation loan is sometimes lower interest rate and the convenience of paying off only one loan.
Debt consolidation is often advised when someone is paying credit card debt. More often than not, credit cards carry a much higher interest rate than even unsecured loans. in this case the total interest and the total cash flow paid towards the debt is lower, allowing the debt to be paid off sooner because it incurs less interest.
There is however one major pitfall with regards to debt consolidation to pay off credit card debt. The risk of taking out the debt consolidation loan and continue to incur credit card debt.
Nowadays it is very easy to get a credit card. More often than not, banks don't perform the appropriate checks to ensure that the person applying for the credit card can afford to pay it off.
I personally believe that it is the responsibility of each person applying for a loan or credit card to ensure that he/she can afford the repayments. The banks should perform the appropriate checks, nevertheless the individual is responsible for his own actions and in the end will be held accountable to pay off the debt.
Debt consolidation is often advised when someone is paying credit card debt. More often than not, credit cards carry a much higher interest rate than even unsecured loans. in this case the total interest and the total cash flow paid towards the debt is lower, allowing the debt to be paid off sooner because it incurs less interest.
There is however one major pitfall with regards to debt consolidation to pay off credit card debt. The risk of taking out the debt consolidation loan and continue to incur credit card debt.
Nowadays it is very easy to get a credit card. More often than not, banks don't perform the appropriate checks to ensure that the person applying for the credit card can afford to pay it off.
I personally believe that it is the responsibility of each person applying for a loan or credit card to ensure that he/she can afford the repayments. The banks should perform the appropriate checks, nevertheless the individual is responsible for his own actions and in the end will be held accountable to pay off the debt.
Friday, July 23, 2010
Managing your finances online
There are many ways to manage your finances online. There are websites that you can use to track your finances via the internet. You enter your details and some of these sites download your financial transactions and create charts and reports for you.
The principle is right, you need a way to keep track of your expenses. But I prefer to do that in my local machine instead of on a hosted environment where my detailed financial information is maintained by someone that I don't even know.
At the end of the day, these websites are maintained by people, all you need is one dishonest employee with access to the database and he/she can steal your identity and, potentially, your money.
These websites have very strict rules and they assure you that they are always doing all that they can to keep your data safe, nevertheless all you need is one person and the damage is done.
I support the internet and all the wonderful things that we can do with it, nevertheless, I don't think that it is safe enough to be giving out detailed personal and financial information to perfect strangers on the internet. After all, would you give out your bank account numbers, and how to get to them, to a stranger on the streets? So why would you do it to a stranger on the internet?
The principle is right, you need a way to keep track of your expenses. But I prefer to do that in my local machine instead of on a hosted environment where my detailed financial information is maintained by someone that I don't even know.
At the end of the day, these websites are maintained by people, all you need is one dishonest employee with access to the database and he/she can steal your identity and, potentially, your money.
These websites have very strict rules and they assure you that they are always doing all that they can to keep your data safe, nevertheless all you need is one person and the damage is done.
I support the internet and all the wonderful things that we can do with it, nevertheless, I don't think that it is safe enough to be giving out detailed personal and financial information to perfect strangers on the internet. After all, would you give out your bank account numbers, and how to get to them, to a stranger on the streets? So why would you do it to a stranger on the internet?
Thursday, July 22, 2010
The science of getting rich - increasing life
We continue in out journey to look at the timeless advice contained in the book "Science of Getting Rich" by Wallace D. Wattles.
The book offers practical advice that if followed it will lead you to riches with mathematical certainty.
The first article of this series ( enter the URL here) talks about the right frame of mind. Start your journey by believing you can achieve your objective and continually think about your goals until they are realised.
The second advice on the book is with regards to increasing life. Wallace says that the desire for riches comes from a natural occurrence that we have to expand, in other words, to increase life.
The book uses the example of a seed that when dropped into the ground it springs into action and produces hundreds more seeds. He says that life, by living, multiplies itself. It is forever becoming more.
All human beings of all aspects of life and society naturally desire to continue to live. By seeking food, shelter and company we all seek to continually live and expand our lives.
Similarly, the desires for riches is the desire from within you to expand your life. It comes from possibility, or potential from within you to express yourself more and to achieve more.
If we all seek to expand our lives, our areas of interest, influence and earn and multiple riches our society will be in a much better position.
If we have more we can help more. It is like a snow ball effect, the more you have, the more you can help others in different ways. Your desire for riches is life within you seeking for fulfilment.
Wallace also discusses the topic of competition. He is completely against competition because in order for you to get rich, you don't need to have what others have. You have the capacity from within you, and life seeking fullness, will continually produce wealth via different ways.
Let me clarify this by using an example. There are seven notes in the western musical scale. With those seven notes, countless amount of music have been produced and countless will still be produced. Musicians don't need to copy each others' compositions. If you go to a music shop you have literally thousands of music that all come from the combination of those 7 notes.
The same apply to your journey for riches, you don't need to copy what others have done, you can always come with something new, which may be similar to what others have done in some cases, nevertheless it is new.
You don't need to compete or take what belongs to others. There are countless million of dollars yet to be produces. The wealth is unlimited, you don't need competition, you can generate wealth yourself.
"Don't look at the visible supply of wealth. Look always in the limitless riches in the formless substance and KNOW that they are coming to you as fast and as soon as you can receive them. Nobody can prevent you from having what is yours."
Some of the readers may look at this short article and say that there is no real advice towards becoming rich or financially independent. It is not true, the advice is to KNOW that you can get the riches you want and you don't need to copy the way that others have done. Life within you wants to increase. By focussing your mind on doing something and being able to achieve your objective, by learning and seeking to expand your life for your own benefit and the benefit of others around you, you will achieve the riches you need, it will come to you as you continue on your path towards financial independence.
QJWFRNRGT73S
The book offers practical advice that if followed it will lead you to riches with mathematical certainty.
The first article of this series ( enter the URL here) talks about the right frame of mind. Start your journey by believing you can achieve your objective and continually think about your goals until they are realised.
The second advice on the book is with regards to increasing life. Wallace says that the desire for riches comes from a natural occurrence that we have to expand, in other words, to increase life.
The book uses the example of a seed that when dropped into the ground it springs into action and produces hundreds more seeds. He says that life, by living, multiplies itself. It is forever becoming more.
All human beings of all aspects of life and society naturally desire to continue to live. By seeking food, shelter and company we all seek to continually live and expand our lives.
Similarly, the desires for riches is the desire from within you to expand your life. It comes from possibility, or potential from within you to express yourself more and to achieve more.
If we all seek to expand our lives, our areas of interest, influence and earn and multiple riches our society will be in a much better position.
If we have more we can help more. It is like a snow ball effect, the more you have, the more you can help others in different ways. Your desire for riches is life within you seeking for fulfilment.
Wallace also discusses the topic of competition. He is completely against competition because in order for you to get rich, you don't need to have what others have. You have the capacity from within you, and life seeking fullness, will continually produce wealth via different ways.
Let me clarify this by using an example. There are seven notes in the western musical scale. With those seven notes, countless amount of music have been produced and countless will still be produced. Musicians don't need to copy each others' compositions. If you go to a music shop you have literally thousands of music that all come from the combination of those 7 notes.
The same apply to your journey for riches, you don't need to copy what others have done, you can always come with something new, which may be similar to what others have done in some cases, nevertheless it is new.
You don't need to compete or take what belongs to others. There are countless million of dollars yet to be produces. The wealth is unlimited, you don't need competition, you can generate wealth yourself.
"Don't look at the visible supply of wealth. Look always in the limitless riches in the formless substance and KNOW that they are coming to you as fast and as soon as you can receive them. Nobody can prevent you from having what is yours."
Some of the readers may look at this short article and say that there is no real advice towards becoming rich or financially independent. It is not true, the advice is to KNOW that you can get the riches you want and you don't need to copy the way that others have done. Life within you wants to increase. By focussing your mind on doing something and being able to achieve your objective, by learning and seeking to expand your life for your own benefit and the benefit of others around you, you will achieve the riches you need, it will come to you as you continue on your path towards financial independence.
QJWFRNRGT73S
Tuesday, July 13, 2010
Financial Independence Compilation
Welcome to the July 11, 2010 edition of financial independence.
This week, Your Financial Independence is highlighting 2 recent posts. Please do take the time to review them and post your feedback.
Thank you to all contributors.
Your financial independence articles
Some good advice on money matters. This article offers a few important advices to help you on your financial journey.
Managing your cash flow to pay off debt. Debt is one of the biggest problems in our modern society. Young generations are growing up accustomed to debt, as if it is a normal part of life. Bad debt can affect individuals and families to the point of bankruptcy. This article offers a few advices on how to manage your cash flow to pay off bad debt.
Weekly compilation
Valery Zelixon presents Logistics is key for international business success posted at Supply Chain Notebook, saying, "great overview from a purchasing pro about selecting overseas suppliers."
Valery Zelixon presents Supplier selection process part 1 - - how to select global supplier for your business posted at Supply Chain Notebook, saying, "great overview from a purchasing pro about selecting overseas suppliers."
Silicon Valley Blogger presents Want To Day Trade? Try Paper Trading First posted at The Digerati Life, saying, "Lots of new investors jump into stock trading without enough experience and training. They lose their shirts in the process. But before you try this out, why not do virtual trading with play money and find out if this is right for you? You may find that you aren't cut out to trade and can save yourself a bundle!"
Ryan @ MFN presents Improve Your Credit Score Quickly posted at The Military Wallet, saying, "These tips will show you how your credit score is determined and give you methods for improving your credit score quickly."
Tim Chen presents 5 Reasons To Avoid Amex Blue Cash posted at NerdWallet Blog - Credit Card Watch, saying, "The Amex Blue Cash is a card that everyone loves to love, with it's enticing promise of 5% cash back. But there is a catch! So make sure you understand the fine print before you sign on the dotted line."
Hussein Sumar presents Three Reasons Why You Should Sell a Dividend Stock posted at Dividend Stocks, saying, "If investors buy high yielding dividend stocks in an effort to generate income in the form of streams of dividend payments, but the company one day decides to reduce or cut its dividend altogether, then for those investors, there will be no point of holding that stock. This will put selling pressure on the stock and downward price movement. Here's an example of a dividend cut by General Electric."
Corinne Reidy presents 52 Habits of Highly Effective Teachers posted at OnlineUniversities.com.
MoneySecretRecipe presents Your 2 Top Options For Success If You Want To Make Money Online posted at MoneySecretRecipe.
Jessica Bosari presents A look at the Big Four…Where Can You Get the Cheapest Cell Phone Plan? | billeater.com posted at Billeater, saying, "Who has the cheapest cell phone plan?"
OmarAdams presents 12 Must-Have iPhone Apps for Serious Bargain Shoppers posted at Online Accounting Degree, saying, "These apps also allow you to save your time while getting the best price, so now you do not have to trade in your time to save cash. Get great deals on a tight schedule with the following iPhone apps for bargain shoppers."
MoneySecretRecipe presents Do something that you have passion ... money and success will follow .. posted at MoneySecretRecipe.
Carlos Sera presents A Competitive Tale; Financial Tales posted at Financial Tales, saying, "In every new client relationship the conversation always turns to how will the advisor be compensated? Periodically I am asked why I or others don’t charge clients based on the profits that we generate. When they ask me this question I always ask them to choose between two colors. I ask them which is their favorite black or red. When they look at me quizzically"
CreditShout presents Beware of Joint Credit Card Accounts posted at CreditShout.
Joel Ohman presents How to Find Cheap Car Insurance posted at Car Insurance Comparison, saying, "You don't have to be a Scrooge but there are still some quick tips to finding cheap car insurance!"
Sam presents New !! Your IRA Retirement Savings Plan. Details for Tax-Free Savings posted at Surfer Sam and Friends, saying, "Thanks for including my article. Here's an excerpt...
Almost anyone can set up an IRA and start saving for retirement. Retirement can be the best time of your life if you have enough money to enjoy it. Plan ahead. Avoid coming up short when you retire.
1. What is an Individual Retirement Account, IRA?
2. How Much Money Will You Need to Retire?
3. Three Steps to Set Up Your IRA Retirement Plan
4. There are Three Types of Individual Retirement Accounts, IRAs
5. How Much Can You Contribute to an IRA Retirement Plan?
6. How Much of My IRA Contribution Can I Deduct?
7. Making Withdrawals from Your Regular IRA Retirement Plan
8. How to Avoid the Penalty for Early Withdrawal From an IRA Retirement Plan
9. The Regular IRA Retirement Plan Has an Penalty for Under-Withdrawing
10. Use an IRA Retirement Account for Estate Planning"
DepositAccounts presents 10 Mistakes People Make with Their Bank Accounts posted at Deposit Accounts.
Patty Pedersen presents Sector Funds: Best, Worst, and Mid-Year 2010 Stock Market Outlook posted at AlphaProfit MoneyMatters - Investing Blog, saying, "As we cross the year's midpoint, investor's are focused on flat or worsening employment situation in the U. S., strained fiscal situation in Europe, and slowing growth in emerging markets. Yet, some sectors have been able to provide gains even in this crummy market. This article provides insights on whether momentum plays from the first half can continue to be top performers in the second or whether it is time for laggards to take charge."
OmarAdams presents Broke Billionaires: 12 High-Profile Modern Tales of Riches to Rags posted at Online Accounting Degree, saying, "You might assume that being a billionaire equates to an easy life of no money problems, but for many high-profile people, this is certainly not the case. It is tough for most people to lose a job or a home worth thousands, but imagine losing millions or even billions of dollars in the blink of an eye."
Roshawn Watson presents The Phony Rich posted at Watson Inc, saying, "The exotic cars, the homes, the private planes, chauffeurs, the celebrity hot spots, and nightly $300-plus per person dinners, etc. all encompass our vision of wealth. If this lifestyle is your aspiration, then there is a secret that you should know"
BWL presents How To Avoid Taking Out Student Loans posted at Christian Personal Finance, saying, "Graduating debt-free is possible, but you’re going to have to rethink everything in order to make that happen..."
Linda@NHE presents How To Find A Natural Health Insurance Plan posted at Natural Health Ezine, saying, "Find the best health insurance plan that will suit your needs for natural and alternative treatments."
Arjun Rudra presents Correlation of mortgage rates with real housing prices: How increasing inflation could affect housing prices posted at Investing Thesis.
The Dough Roller presents How To Get Your Private Pilot’s License (And How Much It Costs) posted at The Dough Roller, saying, "Flying high can cost you a pretty penny."
MoneySecretRecipe presents How to Avoid Mistakes Made by 95% of NEWBIES INTERNET MARKETERS posted at MoneySecretRecipe.
BIFS presents Maintaining Motivation on a Big Financial Goal «Budgeting In the Fun Stuff posted at Budgeting In the Fun Stuff, saying, "Great post about ways to keep your eyes on the prize."
Dividist presents Investors Love Divided Government - Perception is Reality posted at Divided We Stand United We Fall, saying, "No studies unequivocally show a statistically significant correlation between longer term market direction and Republican, Democratic, or divided governments. But in the short term it is less important whether there really is a correlation so much as whether investors believe there is a correlation. Most investors believe the stock market will benefit from Republicans taking control of either the House or Senate in the fall. With that expectation, a rising market could very well be a self-fulfilling prophecy."
Alexander presents Dividend Income Strategy posted at Dividend Stocks, saying, "When you invest in dividend-paying stocks or mutual funds, you will receive periodic dividend income."
Claudia Gonella presents Is now a good time to buy Panama Apartments? posted at Real estate investing in Panama, Costa Rica, Nicaragua and Belize.
MoneySecretRecipe presents Top 4 Ways For Stay-At-Home-Mom Who Want To Make Money Online posted at MoneySecretRecipe.
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Wednesday, June 16, 2010
Getting rid of debt
There are 2 types of debts, good debts and bad debts.
Good debts are the ones incurred to purchase assets such as shares. It is important to mention that in this case, any dividends from the shares should be used to pay the debt.
Bad debts are the ones most people get to buy things that are not assets. Clothes, big TVs, cars, big and expensive houses, the list goes on.
Following are some simple tips to pay off bad debt:
Strive to make your payments on time
Most credit card companies will charge fees for late payments so make sure you make your payments always on time.
Pay more than the minimum amount
Credit card companies are not interested in you paying off your credit card debt. They want you to have as much debt as possible so long as you can make your minimum payments.
The reason for it is that they want you to keep incurring interest charges so they keep on making money.
You need to pay as much as possible in order to reduce the amount of interest you pay. This is obviously conditioned in you having the cash flow to make the extra payments.
Make repayments as often as possible
In most types of loans, interest is calculated daily. In your to reduce that interest it is important that you make payments as soon as your money is available. Don't wait for the monthly statement to arrive, pay as much as possible, as often as possible.
Make payments where you are incurring the highest amount of interest
If you incur more interest charges than interest you earn on your savings account, use your savings to pay off the debt. It does not make sense to keep money away earning 4% where you are incurring a 12%, or even higher, interest on your unsecured debts.
Increase your cash flow
The quickest way to pay off your debt is by earning more money and using it to get rid of the debt. This is not easy, especially if you work hard during the week. You certainly don't want to spend your weekends doing some work away from your family.
This may be necessary until your finances are back on track.
The most important piece of advice is not to incur bad debt if possible. Prevention is always better than cure.
Good debts are the ones incurred to purchase assets such as shares. It is important to mention that in this case, any dividends from the shares should be used to pay the debt.
Bad debts are the ones most people get to buy things that are not assets. Clothes, big TVs, cars, big and expensive houses, the list goes on.
Following are some simple tips to pay off bad debt:
Strive to make your payments on time
Most credit card companies will charge fees for late payments so make sure you make your payments always on time.
Pay more than the minimum amount
Credit card companies are not interested in you paying off your credit card debt. They want you to have as much debt as possible so long as you can make your minimum payments.
The reason for it is that they want you to keep incurring interest charges so they keep on making money.
You need to pay as much as possible in order to reduce the amount of interest you pay. This is obviously conditioned in you having the cash flow to make the extra payments.
Make repayments as often as possible
In most types of loans, interest is calculated daily. In your to reduce that interest it is important that you make payments as soon as your money is available. Don't wait for the monthly statement to arrive, pay as much as possible, as often as possible.
Make payments where you are incurring the highest amount of interest
If you incur more interest charges than interest you earn on your savings account, use your savings to pay off the debt. It does not make sense to keep money away earning 4% where you are incurring a 12%, or even higher, interest on your unsecured debts.
Increase your cash flow
The quickest way to pay off your debt is by earning more money and using it to get rid of the debt. This is not easy, especially if you work hard during the week. You certainly don't want to spend your weekends doing some work away from your family.
This may be necessary until your finances are back on track.
The most important piece of advice is not to incur bad debt if possible. Prevention is always better than cure.
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