Surviving Tough Times - Create and Maintain a Budget

Tough times are here again, and as usual a lot of people are screaming that the “government” or “Big business” screwed them over. Nonsense, the problem lies in individual responsibility. The problem is too many people think that good times are always gong to last, and when trouble hits they are devastated. However there are a lot of people that are still enjoying life, even in bad times. How do they do it? Easy, they just make a budget and stick to it, no matter what the economy is doing. How do they do it, and if you aren't one of them how can you join them? Well here's a few tips to help you get started.

The first step to avoiding the troubles of financial debt is to create and maintain a budget. It’s not as intimidating as it sounds, don’t worry.

First off, create a list of all your monthly income and also a list of your monthly expenses. When determining income, list all sources including alimony, child support, side jobs, etc. In calculating expenses, be sure to include housing, food, transportation, utilities, entertainment, etc. To gain an accurate reflection of actual expenses, sit down each night and write down expenses, just make sure to save receipts. Determine if your income covers all of your expenses. If the answer is no, then some expenses need to be reduced.

Adjust expenses. If it is a small discrepancy, it may mean reducing some minor expenses like entertainment or cell phone plan. If the deficit is larger, you may need to downsize your vehicle or living arrangements. If your income covers all of your expenses, you still may want to trim some of the excess fat off your spending habits. This can free up extra money for things such as vacations or college funds for your children.

Additionally, consider if you need to add new categories. Some areas that are often overlooked are debt reduction, emergency savings funds, and retirement savings. An emergency fund ensures there is an adequate amount available to cover unforeseen events (car emergency, etc), should it arise. This will eliminate the need for using credit which can quickly damage your budget.

There are several advantages to sticking to your budget. Firstly, most people have set financial goals that they would like to reach in the future. Sometimes it may be a trip, a brand new car, or a college education. A budget can help people save money to make these goals a reality. Additionally, many people are crushed under heavy consumer debt. Without a disciplined pattern of spending, it is virtually impossible to make much headway in reducing debt. A personal budget will provide the necessary framework to begin eliminating these inflated account balances.

If executed properly, a budget will allow a person to simultaneously meet their expenses, place money into savings, and pay back outstanding debts. Therefore, it is anyone’s best interest to create and implement a budget.


Cut Back on Spending

One of the first steps to take when developing your budget is to control your spending.

At first it may seem difficult to limit spending and stick to a budget, however there are a few practical changes that you can make everyday that will cut your spending more than you expect.

Firstly, alter credit card behavior. Start to pay cash whenever possible. This will help you avoid making a purchase unless you actually have the money available. If you decide to make a credit card purchase, be prepared to pay the balance off monthly. This will save a lot of money through avoiding interest charges. If you already have a credit card balance, then transfer to a card with a low interest rate. Also, find a card that does not charge an annual fee.

Another tip is to pack your lunch everyday. All of those lunch hours spent at restaurants will add up. Bringing your own lunch can save you several dollars every day, which will add up over time.

Use your cell phone during off peak hours. Some people will spend a couple hundred dollars a month on phone charges. Avoid this by making most calls during off peak times. Check with your service and plan to find out when you have cheaper or unlimited calls.

Stop throwing away the Sunday newspaper before skimming through the advertisements. Clip some of those coupons and check out the sales. This may seem tedious, but the savings are often worth it. Many stores will double or triple the amount of the coupon. This technique can save you up to 20 or 30 dollars each time you head to the food store.

Additionally, refinance. Mortgage rates have been extremely low over the past year. This has been a great opportunity to reduce the monthly house payment significantly. If you are planning to have your house paid off prior to retirement, then you may want to factor this in before refinancing.

Finally, bundle your insurance. Many insurance companies will offer their customers lower rates if they purchase multiple policies. For instance, some people use the same agent for multiple cars, and others combine their cars and house. Always keep in mind that a dollar here and there really begins to add up. Avoid the temptation of thinking that changing your spending habits wouldn’t save that much money.

Put these ideas into action and you will see a difference right away. Keep it up and you will find that most of what you thought was necessary was actually waste. On the plus side you will have money for those times when you really want to do something special.


Mahalo.

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Need to learn how to get and stay out of debt and live debt free?
Tips and techniques outlined in our ebook “Debt Free Living”.

For more information:
http://www.renspubhouse.com/debtfree/debtfree.html

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Save Money by Avoiding Impulse Spending

Save Money by Avoiding Impulse Spending


Answer these questions truthfully:

1.)Does your spouse or partner complain that you spend too much money?

2.)Are you surprised each month when your credit card bill arrives at how much more you charged than you thought you had?

3.)Do you have more shoes and clothes in your closet than you could ever possibly wear?

4.)Do you own every new gadget before it has time to collect dust on a retailer’s shelf?

5.)Do you buy things you didn’t know you wanted until you saw them on display in a store?

If you answered “yes” to any two of the above questions, you are an impulse spender and indulge yourself in retail therapy.

This is not a good thing. It will prevent you from saving for the important things like a house, a new car, a vacation or retirement. You must set some financial goals and resist spending money on items that really don’t matter in the long run.

Impulse spending will not only put a strain on your finances but your relationships, as well. To overcome the problem, the first thing to do is learn to separate your needs from your wants.

Advertisers blitz us hawking their products at us 24/7. The trick is to give yourself a cooling-off period before you buy anything that you have not planned for.

When you go shopping, make a list and take only enough cash to pay for what you have planned to buy. Leave your credit cards at home.

If you see something you think you really need, give yourself two weeks to decide if it is really something you need or something you can easily do without. By following this simple solution, you will mend your financial fences and your relationships.

Only through discipline and proper planning can you really enjoy the good life. Spending like there's no tomorrow is not the way to go. Save yourself, Save your money and enjoy the finer things in peace.

Mahalo

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Need to learn how to get and stay out of debt and live debt free?
Tips and techniques outlined in our ebook “Debt Free Living”.

For more information:
http://www.renspubhouse.com/debtfree/debtfree.html

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Preventing Default On Student Loans

There are several ways that you can make to prevent the onset of student loan default. It is just somehow necessary for you to place your interest and efforts on preventing it. Here are the possible ways that you can consider:

1.Make sure that you understand your loan options as well as the related responsibilities prior to taking out a student loan.
2.Simply make your payments on time.
3.If possible, inform your lender or service provider promptly about any of the possible adjustments that may affect the repayment of your student loan. In case you move or change your address, let them know. Also, make sure that they know about the name changes, which are very possible because of marriage; graduation or termination of studies; leaves of absence as well as transfers to another institution.
4. If certain financial difficulties are encountered, try to consider applying for a deferment or forbearance on your loans. Many experts often suggest that it is much better to defer your payments than to go in to default status. Along with this, ask your lender or service provider about the available options while you are still making payments, before you enter the default status of your loan. Always note that after you default, you won’t be able to get a deferment or forbearance anymore.
5.If for instance you are having trouble making your payments, try to contact your lender as they may be able to suggest an alternate repayment options for you. Some of the possible options include graduated repayment, income sensitive repayment, as well as income contingent repayment. Also note that the types of available repayment options currently depend on whether the student loan was issued under the FFELP or FDSLP or Direct student loan programs.
6.A student loan consolidation can be considered as another way for preventing student loan default. Combine all of your educational loans into one big loan as this gives you the chance to send your payments to just one lender. What’s more, you may be able to extend the term of the loan in order to lessen the size of your monthly payments.
7.Simply keep records regarding your student loans. If possible, try to back up copies of all your letters, canceled checks, promissory notes, disbursement notices, and some other necessary forms in a file folder. Just be organized.

Getting Out of Default

In case your loan already entered the default status, don’t worry. You still have hopes if you will just try to pay even just a little consideration on your debts. The first move to take to get out of debt is simply to make arrangements with your lender to repay the loan. It is commonly noted that once you have made six regular payments, there is a chance for you to be eligible for an additional Title IV aid.

After you have completed twelve regular payments and applied for and received “rehabilitation”, you will no longer be considered in default. It is also at this time when the record of the default will be eliminated from the reports to credit reporting bureaus.

And, for further information about the available repayment options that could suit your needs, just contact your lender. The financial aid office at your school should also be able to tell you the name, address as well as the contact number of your lender. They can also give you supporting help and advice about your repayment problems.
Student Loan Rehabilitation

As the phrase suggests, the loan rehabilitation is a program designed to rehabilitate the defaulted student loans and return such loans to a favorable status. This program actually requires 12 consecutive monthly payments of a predetermined agreeable amount.

It is often suggested that those borrowers in default status must contact their servicing agency to define the loan rehabilitation program that is reasonable to both parties. However, if a reasonable rehabilitation program cannot be reached with your lender, there is the office of the Federal Student Aid Ombudsman, which is a neutral party, designed to resolve any disputes.

Conclusion

Having said all these, the defaulted student loans are no doubt a serious problem that must be healed as soon as possible. This is for the fact that when the case intensifies, certain damages not only on the person’s credit rating, but other consequences as mentioned above will greatly result like a brush of fire.

Mahalo.

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Need to learn how to get and stay out of debt and live debt free?
Tips and techniques outlined in our ebook “Debt Free Living”.

For more information:
http://www.renspubhouse.com/debtfree/debtfree.html

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Green Portfolios Are The Way To Go!

Investing in Alternative Energy Stocks

Alternative energy stock portfolios are a great part of a modern investor's financial plan, due to the fact that there is so much upward potential. These make excellent long term growth investment vehicles, and the money put into them by you, the investor, serves to further the cause of implementing the alternative energy power sources that we need as we sail into the 21st century and beyond.

Analysts predict that by 2013, the alternative energy industry will be a $13 billion dollar industry in today's dollars. This figure bespeaks an enormous return on investment. Indeed, if you were to invest in a start-up alternative energy company, you might find yourself having invested in the next Microsoft in terms of return on investment. People are fed up with the rising costs of gasoline—while this alone is not sufficient understanding of the need for developing alternative energy sources, it is a factor which can act as a market maker—meaning for you that investments in alternative energy companies makes a lot of financial sense.

However, this does not mean that you don't first want to do some careful research into alternative energy stocks, perhaps with the help of a financial planner. “A few alternative-energy companies are going after the right markets but that doesn't mean you should go buy every name in the sector. Investors need to be cautious about chasing the stocks. And if you are an investor, then you know that the problem in this sector is that nearly every single one of the major players in the alternative energy for profit game are start-ups or in the very early stages of growth. This means for you that they have relatively minuscule (even if rapidly growing) sales, and no expected profitability in the near term or history of earnings for you to be able to research. This can lead to some bubbling, as with what happened to the dot-com industry at the turn of the 21st century. Bubbling in the stock market is not a good thing for investors.

Analysts and financial planners can play a crucial role in helping you get it right with alternative energy investing. “We don't play around in the tiny cap stocks that have technology and not much revenue—the 'hope' stocks. Do your research so you can invest in companies with clear cash generation plans in place.

Still, the outlook is very positive overall—and healthy. “It is good to see that the number of renewable energy funds and the amount of money flowing into these funds is increasing. The renewable generation market is at an important stage in its development; it needs the continued support of the consumer, investor and government to ensure that it reaches its potential and really starts to make a difference to climate change.

So do yourself and the planet a favor and make your portfolio go green in more ways than one.

Mahalo.

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Need to learn how to get and stay out of debt and live debt free?
Tips and techniques outlined in our ebook “Debt Free Living”.

For more information:
http://www.renspubhouse.com/debtfree/debtfree.html

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