31 Jan
2010

Is your paycheck getting you comfortably from month to month or is it hard to resist that cash loan, payday advance, or credit card at the end of each month? Even if your current paycheck isn’t huge, there are plenty of ways to make it go further:

1) Rethink your living arrangements. Your rent is likely the biggest expense you have. Consider renting to own or look for a smaller place or roommate. Paying less for rent is one of the easiest ways to create more wiggle room in your paycheck.

2) Reconsider your insurance. Pay less for auto insurance and check to make sure you’re not paying double for the same coverage. Make sure you’re covered but refuse to pay a penny more than you need to for premiums.

3) Look for cheaper alternatives. You can shop at consignment shops and avoid new clothes. You can dine out at smaller restaurants rather than larger, more expensive establishments. You can join a car share group rather than drive your own vehicle. There are plenty of ways to slash your living expenses. Just open your eyes up to all the options available.

4) See cash in your junk. Are you living with clutter? Get rid of some old DVDs, CDs, books, and gear you never use. Sell it off and put the proceeds into an emergency fund. You’ll live more comfortably and you’ll have money in an emergency.

31 Jan
2010

Your grocery bill is likely a major expense on your budget, but there are plenty of ways to slash what you pay for your food. Here are the best tricks:

1) Don’t pay for convenience. Many of the things that increase your grocery bill are more expensive because they are more convenient. For example, if you are buying shredded cheese, you are paying several times more than you would to buy a block of cheese. Buy the block and grate it yourself. Baking potatoes already wrapped in foil are another major culprit. Buy simpler cuts of meat and cut them yourself and stay way from pre-packaged convenience foods and frozen dinners – it’s always cheaper to make your own.

2) Don’t pay for nice packaging. In any grocery aisle, look up and down. This is where the bulk-packaged items are. These are often priced even lower than brand-name “sale” items.

3) Buy in season or frozen. Seasonal produce is fresher, more nutritious, and cheaper. Anything that’s not out of season, look for it frozen or canned. You’ll save money and get the same nutritional kick. If you like meats, look for frozen meats, which are often cheaper than fresh.

4) Find alternatives to the grocery store. You can often save money by shopping at farmer’s markets, pick your own farms, and through farmer co-ops. You may enjoy better quality food, too. Plus, you’ll be supporting local farmers.

5) Don’t forget to check out our guide to slashing all your bills. Now that you’re saving a bundle on food, you’ll be eager to save even more on all your expenses.

31 Jan
2010

Living above your means is a sure-fire way to run up credit card debt, get dependant on payday loans, and generally ruin your credit rating with plenty of personal loans and debts. Living below your means allows you to set money aside and build your emergency fund – even live debt free – but many people associate living below their means with deprivation. It doesn’t have to be that way.

Many of the things you pay money for right now you would not miss if you replaced them with something else. For example, if you spend money on a magazine or newspaper subscription, you can save your money and still get your reading – just read the newspaper online or your magazines at the library. Or, share a subscription with a friend or neighbor.

Just about everything in your life has a thrifty solution. Make a list of everything you spend money on right now and find ways to cut your bills by at least 33%-50%. It’s easier than you think. Don’t just look for things to cut out of your life – you can enjoy the same things you enjoy right now, just for less. You can still go on vacation – just choose a less expensive place to go or swap houses instead of staying in a hotel. You can still watch lots of movies, but try to go on cheapie nights or rent from the library for free. You could save hundreds of dollars each month without giving up a thing.

29 Jan
2010

Military loans, as their name suggests, are a form of loan offered to active-duty and retired service personnel. Some military loans are also available to the families of members of the military. If you qualify for a military loan, you should apply for one, since these loans often have an easier application process and better rates and terms than traditional loans for civilians.

Since military personnel risk their lives for their country, military loans are one way that lenders repay this sacrifice. Military loans include mortgages (such as VA loans), car loans, personal loans, and more. If you are part of the military, you can find a loan product specifically for you with better rates and terms. You can apply through a branch service personnel office of the military or through any private lender.

Another important consideration is that military loans make it easy to repay. Military personnel sometimes work odd hours, making it hard to come into an office to make  a payment or apply for a loan. While on a tour of duty, it may be hard to find a way to pay regular monthly bills, the way a civilian can. Military loans take all this into consideration and make it easy for you to repay and apply.

29 Jan
2010

The holidays are long gone, the tinsel is thrown out – but are you still paying for holiday indulgences with bills and credit card debt? If you haven’t paid off all your holiday bills yet, you could be racking up big interest and even hurting your credit score if your accounts are outstanding. Here’s how to get back on track:

1) Develop a budget and repayment plan. How much can you put aside for holiday debts today and this month? How long until you are debt free?

2) Rein in your spending. Most retailers have very tempting January sales, but put on blinders and focus on paying down your bills. You’ll feel much better all year for it – and those sales will still happen in July.

3) Don’t forget to pay yourself. Even if you are facing a mountain of debt, don’t forget to put aside some money into an emergency fund and a savings account. It’ll keep you out of financial trouble and will ensure that next December you don’t have to pay for everything with a credit card.

29 Jan
2010

Why are some people hundreds of thousands of dollars in debt while others seem to enjoy the same lifestyle without spending a ton on interest on multiple personal loans? It’s simple: people who avoid loans and debt have a few tricks up their sleeve. Use these same tricks and you’ll be able to avoid new debts, too:

1) Set up savings accounts and emergency fund accounts. Set up at least two savings accounts – one for short-term purchases (like those new boots) and one for longer-term goals (such as a car). The more you save for your purchases, the less money you’ll have to borrow. Plus, make sure you have an emergency fund – it’ll spare you from having to rely on payday loans and other forms of emergency cash.

2) Budget. Without a budget, most of us make impulse buys that eat up our money but don’t get us ahead. Thinking about purchases and planning ahead are a must to prevent huge debts.

3) Take out one loan at a time. Rather than racking up credit cards debts, new car loans, home loans, and personal loans for renovations, people who aren’t in debt take it easy. They buy a car, wait a while and save up before buying a home. They pay down their debts before taking out more money.

4) Go easy on credit cards. If you can’t afford to pay for it with cash, you really can’t afford to pay for it with a credit card – you’ll be paying purchase price plus interest. Choose the best credit card for you and pay off the balance each month.

28 Jan
2010

Car loans can really suck up a lot of your paycheck. Even if you get a great interest rate and a super deal from your dealership, you can still easily spend $400 or more for a new car on car loan payments alone – and that’s before the cost of repairs and insurance. That’s $400 a month you could be putting in investments, savings, or an emergency fund. You can avoid car loans entirely with this simple plan:

1) Save up cash for a much older car. Even if you buy a car that isn’t that great for about $1000 and put aside $2000 for repairs (which it will inevitably need) you will still often get a car that lasts about a year. During this first year, save about $200 a month into a savings account.

2) Once your $1000 car dies, take the $2000+ you saved over a year (or more) and invest it in a slightly better car. Sell your current car (for parts if you have to) and put the cash in your emergency fund for any repairs you might need on your vehicle. Continue to save $200 a month for a year or two while you drive your slightly better car.

3) Repeat the process, saving up more cash and upgrading your car with each sale. Each time, you’ll be able to pay cash for a car and have money left for any needed repairs. The $200 you save on a new car payment should go towards paying down your personal loans, student loans, or other debts.

28 Jan
2010

Do you dream of retiring early? Sleeping in and traveling the world? Not having to show up to work? Plenty of people do it – retire in their 30s or 40s or even earlier. You don’t have to have a huge stock portfolio or a fancy job to get there. Here’s what you do need to do:

1) Buy assets. In addition to a retirement fund, you’re going to need assets – such as a home that is fully paid off that you can live in. To get there, you’re going to have to pay down personal loans, credit cards, and other debts and start saving for a home.

2) Create passive forms of income. Many people who retire early do so because they create a passive form of income. They create something that brings in royalties or they buy discount real estate and collect rent on it. Investigate the types of passive income you could tap into.

3) Monetize play. Some people who retire early simply retire from their job. They instead start collecting cash from a hobby – such as a craft they sell online or a hobby that they create a small side business around. If you have assets and another form of passive income, making a few hundred dollars a month for a few hours of work here and there is a nice way to semi-retire early.

4) Make saving a lifestyle. Even if you have assets and some alternative forms of income, you’re going to need a retirement fund. Talk to a financial professional to determine how much you will need in your fund to retire with the lifestyle you want. Then, start saving as much as humanly possible to get to that magic number as soon as you can. Be sure to read our guide to increasing your income to find even more cash to contribute to your fund.

28 Jan
2010

For most of us, retirement seems like a long way off. Whether it’s 10 or 40 years away for you, you need to start saving for it – now. The earlier you start saving, the less painful it will be for you, since starting early means you can enjoy more cash with much smaller monthly contributions. Even if you’ve waited a while, you can still make your retirement plans a reality. Here’s how:

1) Create an aggressive war plan for your debts. Whether you have rolled over payday loans, credit card debts, or personal loans, debts delay retirement (you need to keep working to pay those things off) and rob you of cash you could be putting towards retirement.

2) Talk to a financial professional about your goals. Even your bank can offer free services from a qualified professional who can help you determine how much you need to have at retirement to live at your level of comfort and can help you determine how much you need to set aside each month to retire on schedule.

3) Make savings automatic. Have your employer or bank automatically deduct your retirement contribution from your paycheck so that you don’t have the chance to spend it or miss it. Automatic contributions also mean one less thing you have to budget for.

27 Jan
2010

If you haven’t filed taxes in a while, or owe the IRS money, it can be a scary thing. If you already have payday loans, personal loans and other debts to consider, an additional debt can be a terrible thing. The IRS forms and letters which arrive about your debt can be scary. Here’s what to do:

1) If you know you owe back taxes but have not filed yet, visit a qualified accountant, tax preparer or tax attorney today. Bring all your financial information. The sooner you file, the sooner you can start paying off your debt. The sooner you file, the more likely you are to avoid harassing letters and calls.

2) If you already have filed and you owe money, consider taking out a personal loan to pay off your debt. If your debt is small, compare the interest rate on your loan and the rate the IRS charges. It may be cheaper to borrow money than to pay the IRS in increments.

3) If you owe a lot of taxes or cannot afford what you owe, work with the IRS through a tax preparer to develop a repayment plan.