27 Jul
2010

Teenagers are at an interesting time in their lives, financially speaking. Most have few if no expenses but many have a job or some allowance that gives them disposable income. Most teens also have more freedom than children, so they have more leeway in spending their cash. Freedom and disposable income mean that teens may be picking up spending habits that stay for a lifetime. The teen years are a good time to teach your kids about money. There are several ways you can teach your teens about money:

1) Develop a budget. Help your teen budget for things such as a new car or a new wardrobe.

2) Get your teen involved with financial planning by using apps and online tools. Teens are more likely to see money as cool if they can use their cell phone or computer to keep track. These tools can help your teen track spending, compare prices, and track savings.

3) Consider using a controlled method, such as prepaid debit cards, to teach your teen about money. If your teen is struggling, prepaid debit cards allow your teen to stick to a budget – once the card runs out, your teen has to stop spending. As well, prepaid debit cards leave a paper trail so that you can review spending habits and shopping decisions at the end of the month.

27 Jul
2010

If you abuse payday loans and emergency cash advances, it’s easy to get stuck in a terrible cycle

1) You take out a loan because you do not have the savings to pay for an emergency.

2) You cannot repay the loan you do not have the savings to pay for your living expenses and your loan.

3) You take out another payday loan to pay for the first.

4) Now you have more than one loan and more than ever to repay (plus interest) so you continue to pay down some of your loans while taking out more payday loans.

This cycle can easily lead you to bankruptcy. However, it does not have to. If you are already in the cycle, there are several things you can do. First, you need to create a repayment plan. Take a strong look at your finances and your monthly budget to see where you can trim costs. Anything you can save should go towards your payday loans. If you cannot find anything to save on, you may want to consider a second part-time job to get out of debt fast. Or, you may want to sell some things you don’t use to generate some extra cash. Remember – those payday loans are costing you a lot in interest, so you need to take action.

You can also take out a consolidation loan  to cover the costs of your payday loans and pay off the loan at a lower rate. However, in order for this system to work, you need to stop relying on payday loans. You cannot take out even one more payday cash advance while paying off your consolidation loan. You may need a savings account and a strict budget to stay on track, but you will eventually get out of debt.

26 Jul
2010

If you travel for business, here are a few ways to keep your costs reasonable:

1) Book online. You can find great deals for flights, car rentals, and hotel rooms online. Many companies even offer web-only deals that save you more. Booking online is almost always cheaper than going through a travel agent.

2) Consider non-traditional accommodations. Executive apartments, long-term rentals and vacation homes sometimes cost less than hotel rooms and offer even more space. Look beyond traditional hotels when you book.

3) Use loyalty programs. If you travel a great deal, look for loyalty programs and compare a few. Sign up for the ones that seem like the best deal. You will gather points that you can use for free trips and free perks. Plus, many loyalty programs ensure you get better and some upgrades, making your travel more pleasant.

4) Keep receipts. Whenever you travel for business, get receipts for everything and file them away. Your company may reimburse you for some of your travel expenses. Those receipts may also come in handy during income tax season, when they can help you get a nice tax refund.

26 Jul
2010

If you are a student, now is the time to develop a back to school budget. Whether you are going away for school or just need to pick up a few books, make sure that you:

1) Make a list – and check it twice. Make a list of precisely everything you need. If you need clothes, go through your closet and list the exact items you need (ex. one pair of boots, a winter jacket). If you need school supplies, also create an accurate list. This can help you determine your total costs. Only put items you really need on your shopping lists.

2) Determine what you can afford to pay. Consider how much money you have in your accounts, in your savings, and how much you can earn in the next month or so. If the amount is modest, you may have to modify your list of essentials. You don’t want to charge all your purchases or use personal loans or payday loans to cover your costs.

3) Comparison shop. Compare back to school sales online and in local stores to find the best deals. Be especially vigilant about comparison shopping if you need a large-ticket item, such as a new computer.

4) Find ways to trim back to school spending. Get creative. Maybe you can make do with last year’s wardrobe or maybe you can use a roommate’s printer and just contribute money for the ink. Every dollar you save can go in your savings account.

5) Go online for books. Many books have less expensive online versions and many people sell used textbooks online for very little. Also, consider going to your classes before ordering your books; you may find that you don’t need all the books for a particular class.

26 Jul
2010

If you are a student, you may not have an established enough credit history to apply for many loans. However, this is also a great time to establish good credit, so that by the time you graduate you qualify for the homes and financing you need. Here’s how to develop perfect credit, even on a student income:

1) Learn to save and budget. The money habits (and debts) you acquire as a student will be with you for a while, so now is the time to get started with good habits. Avoid borrowing and get into the habit of budgeting and saving the money you do have. When you graduate and get a good paying job, you’ll have the money skills to manage a larger income.

2) Get bills in your name. Whether you live at home or with roommates, sign up for some utility bills or cell phone service in your name and ensure that these bills get paid on time. This will go a long way towards building your credit.

3) Get a student credit card – and use it wisely. Getting a small limit card and paying it off each month boosts your credit score and develops good money habits.

4) Read your credit report at least once a year. This is an important way to stop identity theft in its tracks.

25 Jul
2010

Everyone goes through a period in which they are afraid about their finances. In some cases, large debts, collection calls, multiple payday loans or job loss result in financial panic. In other cases, the causes of money worries are more obscure – a general dread about “not having enough” takes over. No matter what is causing your money worries, there are a few things you can do to ease the fears:

1) Take a look at the truth. Sometimes, when people have fears about money, they stick their head in the sand and refuse to look the problem directly in the eye. People who are too far in debt with multiple personal loans, for example, may avoid opening their bills. Ignoring the problem will not make it go away, and will actually make it worse. Therefore, the first step is to really investigate what you are afraid of. Are you worried about debt? Determine exactly what you owe. Are you afraid that you will not have enough for retirement? Tally up your debts and assets and then speak with an investment expert at your bank to determine how much you really need to retire. Looking directly at the problem gives you power. The situation may not be as dire as you think and even if it is, at least you will have the facts you need to move forward and start fixing the problem.

2) Develop a plan you can really follow. Once you have faced your money fears, you need a workable action plan. Talk to experts at your bank or to an accountant to develop a plan. If you have too many personal loans, emergency loans, and credit cards, consider credit counseling. Or, determine what you can do on your own to start fixing the problem. Develop a plan that works and that you can start today. If you are thousands of dollars in debt, you cannot pay off everything overnight. However, you can avoid dining out tonight and put the savings towards your highest debt. Work with a budget and a plan that moves you forward a little every day.

3) Identify and stop the spending. Most money worries come down to too much spending. If you’re spending too much, you’re not saving enough and not tackling those debts. Start keeping track of what you spend and budget to save money so that you can put more money towards loans and towards turning your money situation around.

25 Jul
2010

Becoming dependant on multiple payday loans is a pathway to disaster. While payday loans can be a quick and effective way to secure an emergency loan in a crisis, they, like any financial product, can be abused. Since payday cash advances have very high interest rates, dependence on these emergency loans can leave you in a rising sea of debt. Prevention is the best cure in this case, and to prevent a financial meltdown, you will want to avoid these payday loan mistakes:

1) Getting a payday loan when you don’t need to. There are plenty of reasons not to get a payday cash advance. In general, you will want to get a payday loan only in a true emergency or in a case where not getting a payday loan can cost you more than a cash advance.

2) Not having a repayment plan. If you do decide you need a payday loan, you need to have a plan in place to repay that loan. If you are living paycheck to paycheck, you may need to really tighten your belt in order to pay off the loan. However, it is important to pay your payday loan on time to avoid late fees and penalties, so start budgeting before you even get the loan.

3) Taking out a second payday loan without paying off the first. Multiple payday loans can really be costly, so do everything you can to pay off loan before you need another.

4) Not taking stock of your finances after getting out a payday loan. If you need a payday loan or multiple cash advances, it is time to take a closer look at your finances because these could be red flag signs that you are not keeping your head above water. You may be living paycheck or paycheck or you might need an emergency account so that you have cash instead of having to rely on payday loans in an emergency.

25 Jul
2010

If you want to improve your income, you will likely need to take steps to boost your career. Increasingly, as the workplace becomes more competitive and candidates for jobs become ever-more qualified, small details become more important. Your image, for example, can make or break your ability to get a great job, especially in more public or more competitive industries. Here’s how to polish your image to land that great money-making job:

1) Take photos and videos of yourself. Ideally, get someone else to do this when you are not aware of it. Photos and videos allow you to analyze the impression you make on others and to target any areas that need improving.

2) Audiotape yourself in a work setting. Your voice and language are also important. Analyze audiotapes of your voice. Do you sound professional? Is your voice pleasant and well-modulated?

3) Check out the image that others in your industry project. Look around you at people who have the jobs (and income) you want. What image do they project and how could you copy some of these same image strategies?

4) Consider a professional consultation. There are many image, branding, style, and etiquette experts who specialize in business clients. Interview a few to find one you trust and can work with.

5) Consider your online reputation. In today’s job market, many employers go online to check prospective employees. What do they find when they look for you? Make sure that any social networking sites or websites with your name and image are professional and make a good impression.

24 Jul
2010

If you are considering buying a home, you have more than just mortgages to consider. You also need to consider where you will live. While plenty of people look for bargains in the suburbs, urban spaces can save you money in lots of ways:

1) Gentrification. Urban and downtown spaces are often subject to gentrification projects, which pour lots of money into these areas. This means that if you move into such a community, you are moving in at the ground level. Once the gentrification is complete, you will often see much improved home values.

2) Commuting costs. Living in an urban center means more access to alternative transportation and easier commutes (via walking) to stores and work. This can save you substantially on car costs.

3) Stable home values. The diversity and population density of most urban spaces means it is often easier to find sellers when you decide to change your home. Many urban homes are in high demand.

4) Tenant income. If you decide to rent part or all your home, you will have an easier time marketing your rental if it is conveniently located, and most urban spaces offer lots of amenities that are attractive to prospective tenants.

24 Jul
2010

If you want to improve your income, you will need to improve your current job or career prospects. Often, this means marketing yourself more effectively, because it all comes down to a matter of perceived value: the more valuable that employers and prospective employers think you are, the more you will earn. However, you need to show and remind employers of your true worth, and this can be done most effectively with a marketing plan. Your plan should include:

1) A big manual. This is the cornerstone of your marketing plan. In one large computer file or print out, create a master marketing document or report, listing absolutely everything that can help you get ahead in your career. This package should include every skill you have, every computer program you can work with, a detailed description of every job you have held, and a list of all possible accomplishments you have every had. This document is for your eyes only, so no detail is too small. Make sure you add lots of detail, too – include employer names, addresses and more. This document is for your eyes only and should be updated often.

2) At least two CVs or resumes. Once you have your big manual, you should create at least two resumes. One should be more detailed and one should be shorter. One should stress skills and one should stress experience. Use your manual to find the details that will really make your resume pop. Consider having a professional writer review or even write your resumes so that they are the best possible quality. You will need two resumes (at least) because different types of jobs will require different resumes.

3) An online resume. More and more people are applying for jobs online, and having an online resume makes it easy to apply, because you don’t have to fuss with attachments and formatting. Plus, an online resume allows you to create an interactive resume. Be sure to make your resume professional and include lots of links that prove your potential as an employee. Linking to that article about you and your job, for example, is a good bet.

4) A business card. A business card is a great networking tool, so get at least a small batch printed. Make them look professional and attractive by heading to a good-quality stationary company.