As political figures in Congress, as well as state and local governments, hem and haw about the unemployment numbers, the fact is that you can take measures to cut down on expenses. The tips presented in this report work even though there are some things that you have absolutely no control over.
For instance, are housing and new construction sales down? That affects the selling price of your property and although property tax should follow the same downward path, in proportion to the amount of decline, it usually does not; property tax is something you have no control over in that a legislature sets the percentage to pay. How to Trim the Fat from Your Expenses explains, in detail, more than 20 tips for cutting the fat that you do have control over.
Take, for example, a fact provided by the Department of Energy: windows can account for 10% to 25% of your heating bill. In dollars and cents this totals between $10 and $25 per hundred dollars spent in fuel to heat your home. By using a couple of the tips I have included you can put that money to other use. These are simple things that cost very little to do but can save you hundreds of dollars. (more…)
In planning you budget and your financial plans for the future you need to understand what is your current financial status. Set the correct amount of time aside to do this properly, as you cannot rush the planning and analysis stage of your financial planning and monitoring.
To determine your financial status there are 3 core stages.
The first stage is to take stock of your current budget. Your budget should be a balance sheet of income coming in and income going out. To get ahead you want to have more income coming in than going out, just surviving equal income coming in and going out and going backwards is less income coming in than what income is going out. Once you have established what is your current category you need to position your budget to getting ahead. (more…)
Reducing costs so that your money is in your pocket, not someone else is a desirable state to achieve. All of us can reduce costs, it is just a question of understanding where your money is being spent and where it is mandatory, can it be purchased at lower cost. Purchasing at a less cost does not necessary mean that you will have an inferior good or service, it means that you have purchased it far more wisely.
Groceries is something we all need but there is a tremendous range of stores and different brands available that significant savings can be made. House brands are made by the manufacturers of the same goods that they are competing against, at a much cheaper price. House brands are generally end of lot runs, special runs due to bulk purchases, imports from other countries and at times companies own by the stores themselves. Shopping on the Internet can reduce your bills as these retailers do not have the expenses of a brick and mortar store, and the staff costs are generally a lot cheaper as well, which provides you with bigger savings. (more…)
The ability to manage the family finances is a very important task to undertake on a continuous basis. Usually in each family this role will be lead by one of the parents and quite often this can cause a great deal of friction within the family. It is quite common that one parent is much better at managing finances and this parent should undertake the lead role to ensure that both parents work together to manage the family finances. Most of the time the parent deemed to be the better financial manager shoulders the main responsibility to ensure financial stability and if you are in debt, to be able to turn the families financial resources around to become either debt free or a more manageable level of debt. It goes without saying that both parents need the support and cooperation of each other to manage the family finances. This means that one parent cannot be saving and making sacrifices whilst the other is spending as fast as they can. Total commitment is required by both parents.
When you talk to your partner about a financial plan, particularly how to eliminate debts, make it a emotionless talk where you are outlining how the future can be better with rigor around financial management. It is possible that both of you have contributed to the current financial status, so it is important that the blame is not set at the feet of one person only. In every plan there should be checkpoints to see how you are both progressing and where possible small rewards to keep you going and to show the benefits of what you are achieving together. (more…)
Considering opening a checking account for people with bad credit? There are few things you should know before you make your decision.
There is a lot of talk about how good second chance banks are. And yes, while having a second chance account can be a very good thing for some people who have no other choice, there are also some downsides that are not often discussed. (more…)
A lot of people are switching to debit cards for their loans and other financial needs. Although in terms of fees, they are much more favorable than getting a credit card, you would have to take note of risks involved in getting a debit card too.
First in the list is security. With a credit card, there is more protection. You would not be responsible for charges that are unauthorized and above $50. However, with a debit card, there are a lot more things for you to do in case it gets stolen. First, you have to report the theft or loss within two days. If you miss that deadline, you can still report it but be on the hook for around $500. After two months, however, you would have unlimited liability for that debit card. There are different policies for each company, so it is best if you consult and understand the proceedings well.
Your credit score would not increase with a debit card. No matter how many times you use it, you would not be able to improve your score. However, the records that are in your card would reflect that you are able to pay your bills on time. Also, they do not have provision for dispute once you have paid for charges made to it. (more…)
In this age of heavy expenses, unemployment, recession and economic crunches all around the globe, financial planning must be an important and necessary part of our daily lives, but it is completely neglected by the care-free world of people. We often spend our money on things which do not have any practical use and are just placed in the market to fetch money out of the pockets of the public. On other occasions, we spend a lot more than the worthy price of an item, just because it has the brand name and because it is “IN” these days. After displaying such acts of negligence on our money, we reach the end of the month in a situation where taking debt becomes necessary.
The above mentioned situations arise because we never bother to plan out our finances. To us, this activity is just a psychological satisfaction and a waste of time. Little that we know, such planning can save us lots of money both in the short run and long run. Whether you are a business man or doing a 9 to 5 job, whether you are a student who is trying to save some extra pocket money or a professional who is foreseeing a new house in the near future but is unable to save cash, the following tips will help you in organizing and planning your finances:
Monitor your spending:
Make a habit of taking out the list of all the goods and services on which you have spent your money; perform this activity daily. It is just like a daily workout plan. If you find it difficult to perform this activity on a daily basis, try doing it weekly. Make a list of items that you have bought. This list can be classified in the categories of essential outgoings, everyday spending and occasional spending. After monitoring, check whether you are spending less than your income or not. Monitor the areas in which savings can be improved. (more…)
It is commonly understood China keeps a keen and steady eye towards the resolving economic horizon. And so it is with extreme interest to note their recent and dramatic reversal of national policy beginning September 2009. Simply, China now vigorously urges its citizens to purchase and personally own gold and silver. This is a stunning turn around, as private possession of bullion previously risked serious penalty and prison. And the PRC has also been quietly increasing their gold reserves by an eye-popping 76% over the last 6 years, buying on gold price dips and distributing bullion to their billion-plus population, helping to create higher base index gold value levels that should be supported far into the future.
“China, true to its reputation for patience and steady, long-term progress toward its goals, has taken the golden path and now they want the world to know about it,” said Michael Kosares, president of Centennial Precious Metals. “The first step toward stability for both individuals and nation states is a step in the direction of gold, and China has taken it,” said Kosares.
“The important take-away is that China itself is absorbing the bulk (if not all) of the production of the world’s largest producer of gold (also China) with the now confirmed intent of building reserve holdings,” said Peter Grant, a senior metals analyst at USAGOLD-Centennial Precious Metals. “That is very favorable for the longer-term outlook for gold,” he said. (more…)
Paying fees is an extra debt on your outstanding loans. These fees can be a combination of entering into a credit contract and also for late payments. Fees can have a snowballing effect and if you start to be late with payments what seemed to be quite a small amount can quickly turn into large amounts of money. Fees can exist on both unsecured and secured loans. If you default on a secured loan then the financier can take possession of the security that you put up against the loan.
Even with unsecured loans a financier will use a debt collector to reclaim their money and sometimes this will mean you will lose some assets. Fees can be in the form of over the limit, late payment, penalty, defaults and many other kinds.
If you are paying a higher interest rate than other people you know, it is very possible that your credit score from your credit report is not as good as theirs. It only takes a small difference in the scores that could mean thousands of dollars over the life of the term of the loan. (more…)
The United States government prohibited banks from paying interest on checking accounts under Section 11 of the Banking Act of 1933, sometimes referred to as The Glass-Steagall Act. It was referred to as Regulation Q. The fact that it’s actually illegal to have interest bearing checking may leave you scratching your head – particularly if you HAVE a checking account that earns interest! When these regulations went into effect, banks created alternatives to the checking account, like money market funds and Negotiable Order of Withdrawal account (NOW).
Both the money market account and NOW allow account holders to write checks against the money in the account – but are not considered to be a checking account and therefore banks can pay interest on them. (more…)
