31 May
2010

Keeping a journal can be a vital part of your financial life. Simply journaling about your finances, money, and money worries can be a great way to turn your finances around. There are many things you can journal about:

1) Your attitudes about money. Our attitudes about money shape what we do with our finances. Keeping track of your attitudes in a journal can help you weed out those money beliefs that don’t serve you.

2) Your spending habits. Writing down everything you spend lets you see where your money really goes and lets you gain more control of your spending.

3) Your personal loans and debts. Journaling about what you owe helps you keep track of your cash loans and also serves to motivate you to pay down your debts.

4) Your financial goals. Writing down your financial goals can help you achieve them, according to experts.

5) Your money worries. Worrying about money rarely helps, but writing down your financial worries allows you to get some relief from money stress and allows you to focus on solutions to your money woes.

Starting a journal is very simple. Simply purchase a small notebook and pen and carry them with you or store them in one place. Once a day or throughout the day, as thoughts occur to you, jot them down. Soon, you will have plenty of material to review and consider.

31 May
2010

It’s that time of year – many weddings take place as the weather gets beautiful. While marriage is a beautiful thing, though, it can place a strain on a couple’s financial resources. It can even cause stress, especially if a couple have differing approaches to money or very different incomes. Here’s how to negotiate your way to a happily ever after:

1) Talk about money before you get engaged. Discuss money matters – such as personal loans, debts, income, taxes, and other money issues so that both parties understand exactly where finances stand. Once you are married, your finances will be directly affected by your partner’s, so now is the time to learn the facts about the larger money picture.

2) Try a test run. Before getting married, open a joint checking account and have each partner contribute the same amount each month to the account. Use this account for joint expenses (such as bills or wedding expenses). This is a great way to get used to having joint finances.

3) Decide how much of your finances you will share. Depending on how your test run works, consider whether you will keep your finances separate or shared.

4) Sign a pre-nuptial agreement. A pre-nuptial agreement protects both you and your partner and should be an essential part of planning your life together, especially if both partners have different incomes or have considerable assets.

31 May
2010

If you have just landed your first job – congratulations. Now that you are part of the workforce, though, it’s important that you start taking control and start taking steps to ensure a long and prosperous working life. Here’s how:

1) Learn about personal finances and take control of your own money. Reading personal finance books or talking with your bank are important. You want to be able to learn how to invest and save your money. The more effectively you use your money, the more of it you will be able to actually enjoy.

2) Learn about income taxes. Income taxes will take a dent out of your paycheck. Learn how to maximize deductions and ensure that you are paying all you owe so that you don’t end up with a huge bill down the line.

3) Choose benefits and insurance carefully. Review your employer’s benefits and choose the insurance and benefits that will give you the most benefits for your deductions.

4) Start a buffer fund. A buffer fund is essential if you want to avoid personal loans, credit card debts, and payday loans.

5) Start saving for retirement. During your first job, retirement may seem like a long way away. However, it will get here sooner than you think, and saving early will allow you to enjoy the best retirement while paying only a modest amount each month.

29 May
2010

If you need the convenience of checks or credit cards but have poor credit history or difficult balancing a checking account, pre paid debit cards may be right for you. Prepaid debit cards are in fact a type of credit card/debit card hybrid offered by banks and major credit card companies. You apply for a prepaid debit card and once you have one you can load the card with money by transferring money from your bank account. Once you have money on your prepaid debit card, you can use the card just like a debit card. You can use your prepaid debit card to make purchases at a store or to pay bills online. Once your card runs out of cash, you can place more cash on the card.

One of the major advantages of prepaid debit cards is that you don’t need good credit. Even if you have bad credit or no credit, you will still be able to get a prepaid debit card. In fact, a prepaid debit card can help you build your credit rating by helping you pay your bills on time and by helping you avoid overdraft charges and other problems (you cannot overdraw on a prepaid debit card because once the cash on the card runs out you will not be able to make any other purchases

29 May
2010

When you shop with your debit card, you often have the option of getting cash back. This means that after you pay with your debit card, the cashier will hand you back cash, in the amount you have specified. Cash back can be a convenient way to get money if you don’t have time to run to an ATM machine. In some cases, it can also be an inexpensive way to get cash back. Some banks charge very little or even nothing for cash back options.

Check with your bank to find out whether your bank charges for cash back transactions. If not, cash back can be a better way to get money out than ATMs. While the ATMs at your bank will usually not run you any fees, third-party ATMs (the most popular ATMs at stores and public places) will usually charge you a dollar or two per transaction and your bank may charge you third-party ATM fees on top of that. In these cases, cash back  can be convenient and can save you on banking fees.

29 May
2010

Saving money into a buffer account or emergency fund is often tricky because it seems to take some thought and effort. Worse, many people associate savings with deprivation – they assume saving means that they can’t buy themselves something nice. If you are having trouble saving, there are several ways you can trick yourself into saving money, so you won’t even notice:

1) Look for savings and save the difference. Everyone loves a sale and when you find what you need at 50% off, you rarely feel deprived. The next time you find a great bargain, put the amount you have saved into your savings.

2) Have your savings automatically deducted from your paycheck or bank account. It will ensure that your savings grow regularly and you likely won’t miss the difference. This is especially effective if you invest the amount of a new pay raise – you won’t miss the cash because you never had it.

3) Have your bank automatically save for you. Some banks allow you to save by automatically rounding up purchases and investing that small amount into your savings account. Each time you shop with your debit card or credit card, you will be making a small contribution to your savings account and the amounts are so small you won’t even notice them.

28 May
2010

Bad credit does not have to be a chain around your neck. You can easily beat bad credit and start enjoying better interest rates as well as a better credit history. There are many smart solutions for bad credit:

1) Develop a debt management plan. The first step is to stop the debt train. Start paying cash for everything and if you cannot afford something with cash, do not buy it. Next, create a list of all your debts and start paying off the debt with the highest interest (usually a payday loan or credit card). Work your way down the list until you have paid off all your debts.

2) Increase your income. Consider a second job, a new job, or temp work on weekends – but work to bring in more income. You can funnel this additional income towards your debts so that you can become debt-free sooner.

3) Start saving. Even if you have huge debts and can only put aside a modest amount each month, do so. Having a buffer account or savings account stops you from leaning on credit in an emergency.

4) Read a copy of your credit report. Report any errors you see and be sure to follow up to ensure that they are removed. There’s no point in having lower credit because of a mistake. Make sure that you order your credit report once or twice a year to keep tabs on errors and other problems.

5) Make bill payments automatic. Either create a bill payment ritual which ensures that all bills are paid on time or sign up for automatic bill payments so that no bill escapes your notice.

28 May
2010

With inflation and the cost of living, it can be hard to keep ahead financially. If you are being paid less than you should be, you could end up depriving yourself of financial health even more. Even being underpaid $1000 or less a year can cost you a nice retirement income, and earning less income can also push you into debt.

Just because you feel underpaid, that does not mean that you are. To determine if you are making a fair wage, you need to do some research. There are many salary tools and salary calculators online which can help you determine how much an employee in your field and region is earning. You can also visit your local library, where reference works can help you determine median and mean incomes in your field and area.

If you have determined that you may be underpaid, you may wish to explore why. Do you have the required education for your field? Do you have adequate experience and additional training for the best salary? If you do deserve more, now is the time to consider a plan for improving your income. You could ask for a raise, seek a new position, or even relocate to an area with better salaries for your job.

28 May
2010

Retirement should be a time of joy – a time to pursue your dreams. For that, you will need your passion, your health – and a strong financial plan. There are many things you can do now to help ensure a happy retirement:

1) Invest in a retirement plan. If your employer offers a 401(k) plan, invest in that. This is a great way to maximize your retirement money, since many employers match contributions. If your employer does not offer this type of plan, invest in an IRA. In either case, start as early as you can and maximize your contributions. Starting early and contributing as much as you can is the best way to secure your retirement.

2) Invest. While a retirement plan in great, investing in CDs, mutual funds, stocks, or other assets also makes sense. It gives you an extra cushion in case you need it.

3) Buy real estate. Real estate is not an end-all solution, but owning your own home often makes sense. Rents will only increase with time and may eventually take a big chunk out of your monthly retirement income. Real estate protects you from this and also gives you a powerful asset you can borrow against or can sell if you need to.

27 May
2010

We all want our golden years to be, well, golden. There are several ways you can make sure that your retirement years are secure and happy:

1) Start early. The earlier you start saving for retirement, the nicer your nest egg will be – and the less stressful it will be to save.

2) Find ways to trim your expenses. If you are already retired or nearing retirement, budget carefully and find ways to keep expenses low. This will help your income go further.

3) Consider additional or part-time work. Many people continue to work part-time after they retire. This not only helps boost their retirement income, but also helps maintain health. Many studies have shown a link between retirement and adverse health effects. Keeping busy and active at some work helps to keep you in good health, physically, mentally, and financially.

4) Pursue a passion. Retirement is a great time to pursue a hobby or a passion. Today, there are many ways to monetize hobbies so that they generate a little bit of extra income, as well.

5) Have a plan. A retiree may live for twenty, thirty, or even more years after retirement, so you need a good plan to ensure that your money lasts as long as you do. There are many books that can help you and your bank may have financial advisors who can offer free advice as well.

6) Maintain excellent insurance coverage. Do not skimp on insurance coverage, as good insurance will help protect your finances as well as you. You don’t want to pay for accidents or illnesses out of pocket.

7) Create a will. It is estimated that up to 70% of US residents do not have a legal will. If you have any property or assets at all, a will can help protect your dependants.