30 Jan
2011

Starting an emergency fund is one of the most important things you can do to help safeguard your financial future. However, once you have a few dollars put aside, you need to determine where you will put your money. Consider these options:

1) An online account. An online bank account usually has fewer fees and costs, which can mean that your buffer account is hit less by bank fees. You can set up your savings as an online account attached to your main account. This allows you to use your current bank card to access your emergency fund from any ATM, which is handy in an emergency.

2) A credit union. Another option is to take your savings to a credit union, which usually means lower fees when compared with banks. As well, keeping your savings in a separate financial institution than your bank ensures that you if you have a financial emergency related to your bank – you lose your debit card, for example, or your account is affected by identity theft – you have emergency cash you can access.

3) A low-cost traditional account. A third option is the traditional savings account – either at your bank or a different financial institution. The advantage of a traditional account is that your money is easily accessible. Look for an account with the best rates and lowest fees you can find.

30 Jan
2011

If you are trying to get out of debt, it can be hard to stay motivated. If you have substantial debts, it can take you several years to repay everything. In the meantime, you often have to cut spending and change your lifestyle significantly to pay off the debts. Here’s how you can stay on track and stay motivated as you get debt-free:

1) Find no-cost pleasures. Seek out things that cost nothing but bring you lots of pleasure. It may be as simple as dusting off that guitar or heading to the library for books and DVDs to enjoy. Stop associating fun with spending and find low-cost ways to enjoy yourself.

2) Get out of debt faster. Find ways to accelerate your debt diet so that you spend less time trimming costs. For example, consolidate your loans or find sources of extra income so that you can repay your loans faster.

3) Start a savings account. Watching money grow can have a very good effect, making you feel more secure and focused on your money goals.

4) Write down what you pay to creditors each month. Place this figure somewhere where you will see it each day. Every time you look at that number consider that you will be enjoying that much more in income each month when you pay off everything.

30 Jan
2011

If you’re trying to get out of debt, the worst thing that can happen is a sudden emergency or expense. Indeed, many consumers who try to get out of debt find themselves trapped in a cycle, accumulating more debt than they can repay. To avoid the same trap, here is what you need to do:

1) Start a buffer account. In an emergency, you can turn to this source of cash rather than to a loan. If you are trying to repay your loans, you may only be able to contribute a modest amount to your emergency account, but do add a little something every month and leave it there to grow.

2) Slash your expenses. Draw up a budget and stick with it. Reduce your spending as much as you can and avoid buying any non-necessities until you have paid off your debts.

3) Pay with cash. Set up a cash system with envelopes, putting aside the cash you need for gas, groceries, and other essentials. Paying with cash ensures that you can’t overspend, because you can see exactly how much you have left. Once the cash is gone, you have to stop spending.

29 Jan
2011

If you have an emergency and don’t have cash to pay for that emergency – whether it is a vet bill or a hospital bill – you may need an emergency loan or payday advance. Before you apply for these high-interest loans, however, try to avoid the added costs of these loans by:

1) Finding ways to bring in extra cash. If you don’t need to pay a bill (such as a hospital bill) right away, consider finding ways to raise the cash. You might sell some things around the house, take on a part-time job or find another way to raise money.

2) Learning about your options. Many people take out loans because they do not realize that there are options available. Research and find out at least three alternatives to payday loans. Carefully consider all your options to find the right one for you.

3) Talk to your bank. If you have good credit, your bank may be willing to help you by offering you a lower-cost credit card advance or some other solution which allows you to avoid payday loans entirely.

4) Start saving. A buffer account is the best antidote to emergency loans. When you have savings in place, you have somewhere to turn to when you need emergency cash.

29 Jan
2011

The idea behind an emergency fund is that the money is there for an emergency. The problem is that in many cases, people remove cash from their emergency accounts even when there is no emergency. This depletes the account and ensures that there is no buffer fund in a real emergency. If you constantly withdraw money from your emergency fund, you’ll have to apply for a payday loan or emergency loan in an emergency.

Here’s how to keep your emergency fund for emergencies:

1) Make sure that you build your emergency account automatically and gradually. If you place too much money into your emergency account every month, you’ll find yourself short on cash and more likely to turn toward your buffer account. You won’t miss small amounts very much and you’ll be less likely to turn to your emergency account because you have run out.

2) Make it a little hard to access your buffer fund. You need the fund liquid enough to access easily, but not too easily. Some banks have accounts that are not accessible by ATM or debit card – you need to call a 24/7 bank number or log online first to transfer the funds to your regular bank account first. This can be a good deterrent to ensure that you don’t dip into your emergency fund unless it really is an emergency.

3) Have two savings accounts – a “rainy day” account and an emergency fund. The rainy day account is the one you can raid once in a while, leaving your buffer account to grow.

29 Jan
2011

If your budget is stretched thin and you know that you will have a hard time meeting those credit card payments, payday advance payments, or bills, you may need to come up with extra cash quickly. There are several ways to do this:

1) Quick online gigs. There are many websites where you can find very short-term and very temporary employment for extra cash. Just do your homework to ensure you are not being scammed.

2) Local temporary agencies. Many temp agencies need workers for very short-term and temporary seasonal positions. These jobs are usually far from glamorous but they pay quickly and can get you out of a jam.

3) Selling items. Take a look around your home. Old clothes you no longer wear, exercise equipment you never use, that dish set you hate – there are probably many things in your home that you can sell quickly through classified ads to raise some extra cash. As an added bonus, this type of sale usually brings in extra money really quickly.

4) Overtime. You can always ask your employer whether he or she needs some extra work done. You’ll usually get the extra cash during your next payday.

28 Jan
2011

If you need to take out an emergency payday advance, you need to have a plan in place to repay that loan quickly. If you don’t, it’s too easy to rollover the loan and end up paying a lot in interest. Here’s how to develop your repayment strategy:

1) Find out the total costs of the payday loan. This is usually included in your contract.

2) Draw up a budget so that you can see how much of your next paycheck you can dedicate to repaying the payday advance.

3) If you see from your budget that you will not be able to repay the payday advance easily, develop a secondary plan. Find a way to earn a little more, for example, or sell some things you don’t need to raise the extra cash. Remember that payday advances are short-term loans, so it is important to repay them quickly to avoid extra charges and extra interest.

28 Jan
2011

If you have payday loan debts, personal loans, credit card balances, and other debts, you may be eager to pay off some of what you owe. It can seem daunting, but there is a simple way to go about it:

1) Determine exactly what you owe and where. Write it all out on a piece of paper – all your debts, interest rates, and how much you owe.

2) Budget so that you can find extra cash to put towards your debts. Seeing all your expenses in one place really lets you see where your money goes and where you can trim back.

3) Arrange automatic payments on all your debt amounts. The bank can usually help you pay the minimum on all your debts so that they stay current. This helps ensure that you don’t face late fees and collection calls.

4) Tackle one debt at a time. Once all your bills are being paid on time, focus on one debt at a time. Start with the highest-interest debt. Put all extra cash towards that bill until it is paid off, and then move on to the next debt.

28 Jan
2011

Travel fees can easily ruin your travel budget. You may be expecting to pay one thing but end up paying a much higher cost due to “added fees.” Here’s how to avoid surprises:

1) Travel with carry-on luggage. Many flights now charge for any checked baggage, so if possible travel with one bag only. You’ll save the frustration of lost luggage, too. Check with your airline before you pack to find out how much checked luggage you are allowed and the maximum luggage size.

2) Charge your hotel room to a credit card and ask upfront about extra charges. Many hotels charge hidden fees. If you ask and are hit with hidden fees you are not told about, dispute the charge with the hotel. If that does not work, dispute the charge with your credit card.

3) Talk to your bank before you travel about the easiest way to pay at your destination. Many credit cards and banks charge additional fees for every use of your card overseas. As well, the exchange rate for most currency is very high at airports. Talk to your bank about travel checks or about exchanging currency at the bank (where you may end up paying less).

27 Jan
2011

Simplifying your life can mean less stress, less mess, and less money spent. Much has been written about simplifying lifestyles, but if you want to live simpler in order to save cash, here’s what you need to do:

1) Get rid of the tangible things you don’t love and don’t use. Go through your house and target those things you never look at, hate, or just rarely use. Put them aside and sell them in a giant garage sale. The less stuff you have, the less stress you have and the less time you waste trying to sort, clean, and manage all those things.

2) Get rid of things you do. Check out your schedule and to-do lists. What activities do you take part in that you hate or find really unfulfilling? Are there any activities that make you feel bad? Find ways to eliminate these activities or pass them on to someone else – someone who might not mind those activities.

3) Take a look at the technology you use. Do you really need a PDA, planner, and calendar? Do you really need a land line and a cell phone, a netbook and desktop? Find ways to reduce your devices and the time you spend “wired.” You’ll save money as well as time.

4) Find new things to do with your money and time. When you simplify, you may find that you suddenly enjoy more money and more time. Have a plan in place for what to do about this. For example, channel your savings into an emergency fund and use the spare time to pursue a hobby.