30 Sep
2010

If you’ve been through a bankruptcy and now wish to buy a home, you face some additional hurdles. A bankruptcy can remain on your credit score for up to ten years and can affect your ability to get the best on a loan. If you have a lower credit score, you could end up paying tens of thousands dollars more over the course of a bad credit home loan. However, you don’t have to give up your dreams of homeownership. Here’s what to do:

1) Save up cash. Saving up more money for a down payment reassures the lender and ensures that you need to take out  a smaller home loan, which will mean less interest paid overall.

2) Consider adding your name to the title but putting the mortgage under someone else’s name. If your partner or spouse has a clean credit score, you could place the home loan in your partner’s name and add your name to the title so that you retain some financial rights to the property.

3) Wait it out. The longer you wait after bankruptcy, the more your credit score will improve (if you stay dedicated to credit repair, of course). Eventually, you will qualify for a good rate and will be able to buy a home. If you wait, you will also be able to save up a larger down payment as well.

30 Sep
2010

Whether you need a job or want to improve your income by switching jobs, you may come up against some hurdles in your job search:

1) Few attractive jobs. Sometimes, when you look through the “wanted” section of the newspaper or online job sites, it seems that the only jobs available are low-paying jobs. To find better work, you need to tap into the hidden job market. Research companies you want to work for, rather than just focusing on job ads. Set up informational interviews with these companies to learn more, send in a resume, and check the company websites directly to check for posted jobs.

2) You’re an older applicant. The AARP has a list of companies who routinely hire older workers. While some employers may favor younger employees, plenty of companies also look for experience. Consider removing dates from your resume to avoid aging yourself on paper and make sure that you highlight modern workplace skills – such as computer skills and social networking skills – to show that you fit in well in today’s workplace.

3) You don’t have a degree. You may qualify for more jobs than you think, but if the job you really want requires a degree, consider going back to school. Working part-time and studying part time allows you to graduate with no student loans. Keep in mind, too, that some employers will pay for your schooling. Ask your employer whether they have such programs in place.

4) You want to enter a new field. You need to build on your current skills, take some new training, and start small. You may want to take a volunteer position or an entry-level position in your new field for a few months or a year and then work your way up.

30 Sep
2010

You probably know that in order to increase your income and move ahead in your career, you need to become a lifelong learner, always building your skills and knowledge in your field. However, you don’t have to hit the books and rack up student loans to do so. There are other options:

1) Explore continuing education courses at your local college or look to your community college. These programs offer short-term job-specific training and skills building, without the large costs associated with long-term training.

2) Check out professional and trade organizations. These organizations often put out publications that you can order and hold conferences that you can attend for networking. Memberships may be tax deductible and may cost less than one hundred dollars.

3) Ask your employer. Employers are usually very enthusiastic when employees want to learn more. It makes you a better employee, after all. Your employer may offer training programs, incentives, or scholarships.

4) Check out free or low-cost job training options. Mentorship programs, job shadowing, volunteer opportunities, and internships allow you to get on-the-job training and often allow you to network, as well.

29 Sep
2010

If you want to save money and make your budget go further each month, try these unique tips to save more:

1) Save on ink costs by switching fonts and going for generic ink brands. Fonts such as Century Gothic, Verdana, Times New Roman, and Calibri use less ink than most other fonts. While it can seem like a minor thing, with some cartridges costing more than $80, it makes sense to save.

2) Buy at the right time. You can find the best deals at the farmer’s market, yard sale, or craft show by shopping later in the day. Order airplane tickets late on Wednesday, when no one else is shopping and prices tend to be low.

3) Check out alternatives to dry cleaning. Use a home dry cleaning kit or even try hand washing. You’ll save money and be less exposed to toxic dry cleaning chemicals too.

4) When buying big-ticket items, keep a look out for sales and competitor’s prices before and after your sale. Many retailers will match a competitor’s price or a sale price you see to get your business and some stores will pay you the difference if an item you buy is discounted just after your purchase.

5) Ask whether you can get a cash-only discount. Some retailers will let you pay less when you pay with cash, because the store will not have to pay a credit card company for the transaction. It doesn’t hurt to ask.

6) Shop for larger items before the weekend or a long weekend, when everyone is looking forward to the weekend and more willing to negotiate. Employees paid on commission may also look forward to getting extra cash before a weekend away, so your bargaining power is at a peak at this time.

7) Never be afraid to ask for a lower price on an item. You just never know.

29 Sep
2010

Shopping is necessary if you want to have clothes to wear and food to eat, but shopping can also be a pitfall, filled with impulse purchases and overspending. Here’s how to keep your costs low while still getting what you need.

1) Avoid shopping around. Comparison shopping is great – unless you head into stores to compare. Once in the store, you could easily give into impulse buys, sales pressure tactics, and marketing, buying more than you intend. A better strategy is to consider whether you need an item. If you really need to buy it, use the Internet and the phone to find the lowest prices on the item in your area. Then, head right into the store with the lowest price to buy that item.

2) Look out for sales. Sales are tempting, but they can make you overspend on items you don’t need. When shopping, always work with a list of what you need and look at flyers and ads before you head to the store, so that you can decide which bargains and sales make sense for you.

3) Don’t assume that cash is better. In some cases, it is better because once you’re out of cash, you stop spending. However, for larger purchases, it makes sense to pay with a credit card. If there’s a problem with the purchase, your credit card company may be able to help. As well, a prepaid debit card or credit card makes sense if you tend to make impulse purchases on small buys. You’re less likely to use plastic to pay for a $3 coffee.

4) Don’t go shopping when you’re emotions are strong. Whether you’re happy, bored, angry, or upset, shopping emotionally almost always means overspending.

29 Sep
2010

If you’re trying to stick to a budget in order to pay down some personal loans and beef up your savings account, you may be looking to trim costs. That’s a great idea – unless you trim in these areas:

1) Retirement fund. Skimping on your retirement savings now can leave you in financial disaster later. Plus, a retirement fund is a smart investment because in a true emergency, you can borrow against this money to avoid losing your home or going bankrupt.

2) Your health. Taking care of your health should be a top priority. Paying for recommended medications, exercise, and other health costs saves you medical bills – and a lot of grief – down the line.

3) Insurance. While insurance costs can be high, being without insurance when something goes wrong is even more disastrous. Make sure your home insurance, auto insurance, and personal insurance options are sound. To trim insurance costs, consider shopping around for a better quote or increasing your deductibles.

4) Contributions. When finances are tight, many people stop giving to charity to save money. The problem is, giving to charity gives you a nice income tax deduction and makes you feel better about money in general. Even small contributions are appreciated.

28 Sep
2010

There are two sets of wisdom here: one says that you should set exciting and big goals and the other claims that you should set small goals. Which is best for you? Setting big financial goals has the advantage of getting you excited and motivated. Wanting to double your income in a year, for example, is a big goal and imagining all that money is likely to get you humming. The problem with big goals, though, is that they can seem overwhelming, and since it can take a long time to accomplish them, you may be tempted to abandon your goal. You may also have a hard time believing that you will accomplish your goal.

The second idea is to set small, achievable goals. The advantage of setting small financial goals – such as paying down one credit card or paying your bills on time this month – is that it can be easily and quickly accomplished, leaving you with a feeling of accomplishment. This, in turn, can push you to set more goals. As well, small goals are very believable. You can accomplish them in a set time period that’s not too far away and in most cases you can see clearly that you will succeed, which sets you up to succeed.

28 Sep
2010

When it comes to your finances, the little white lie may end up not being so innocent after all. One of the worst things you can do for your financial situation is to be dishonest with yourself about money. Telling yourself “it’s not so bad,” ignoring collection calls and warning notices from bill collectors and continuing your spending habits can lead you straight to bankruptcy. Not taking a close look at your lending and spending habits and your credit score can leave you in debt and broke.

Being dishonest with others about your finances can also be costly – to you. Being dishonest on loan applications and other financial documents, for example, can mean jail time and a criminal record. It is illegal to lie about your finances on most official documents. Lying to friends and family may not land you in legal trouble, but it can break up relationships and leave you very much alone. Of course, you are under no obligation to answer nosey questions about money, but you do have a duty to be honest with others and not misrepresent yourself.

28 Sep
2010

Everyone feels awful about money sometimes. Maybe you realized just how low your credit score really is. Maybe you have had to declare bankruptcy, have lost your home, or have been turned down for a loan. Everyone experiences a bad moment and feels bag about money at some point. Here’s what to do when you’re singing the blues:

1) Take a good look at your situation. Although the last thing you may want to do is look closer at your dismal money situation, it’s important to face facts and to be realistic. There’s the small chance that your situation is not as dire as you think. Even if it is, at least you’ll be armed with the facts you need to move forward.

2) Develop a plan. Every financial situation can be turned around with some help. Seek financial advice and learn from your past mistakes. Develop a plan of action that can take you where you want to go financially and start implementing that plan.

3) Talk it out. If you feel depressed or very upset about your finances, consider talking it over with a trusted friend. If the blues don’t lift after a few weeks, see a counselor for help.

27 Sep
2010

There used to be a time when asking about money, politics, or religion was considered plain rude. Today, with celebrities routinely telling all the juicy details of their scandals and reality TV shows baring it all on TV, privacy is a little harder to come by. Some people think it’s perfectly ok to ask personal money questions – such as “How much do you make?” If you’re faced with a rude nosy person, here’s what to do:

1) Change the subject. Your income taxes, income, and money are no one’s business. It is perfectly fine to smile graciously and start moving the topic towards a related issue. For example, if someone asks about your income taxes, you can always reply with “Well, I guess we’re all worried about our taxes these days, aren’t we, with what’s in the news.”

2) Take a direct approach. Smile and ask the person why he or she needs to know. Add a little laugh to show that you are not offended. This is usually enough to put off everyone but the most pushy person.

3) Make sure you aren’t guilty of nosy questions yourself. If you don’t want people asking personal money questions of you, don’t ask those same questions of others yourself.