Are you up to your eyeballs in debt? Can't see a way out of the mess? Welcome to the club. Most American families are weighed down with too much debt, causing them stress and worry. There is a way out. All it takes is some knowledge and commitment.
Do you dream about being debt free some day? This can be a reality if you follow some basic rules and do what it takes. To start down the road to financial freedom you need to do a few things first. Are you ready? Let's go.
Tip #1. You need to admit there is a problem.
Is there not enough cash coming in or is it spent too quickly, or both? Is the money being spent on non-essentials? Is the income being spent unwisely on luxury items that you cannot really afford? Do you know how much you really have to spend? Do you know how much you owe and to whom?
You need to honestly answer these questions and be prepared to take some action.
Tip #2. You need a make a plan and stick to it.
First of all, you need to know your financial situation. Take out all your credit cards' statements and add up the outstanding balances. Make a plan to reduce the debt to a certain level within a fixed period of time. Once this is done there are tools you can use from the Internet to track your spending and your debt reduction.
Imagine what you will be able to do with the money you currently use to pay off debt.
Tip #3. Never add to your debt. Cut up the credit cards and live within your means.
Work out ways to cut down on your expenses so that you can live within your means. Start to put some funds aside for emergencies. You can cut down your expenses easily if you just think creatively. Here are a few suggestions to get you started.
a) Anything you need (not just want) can usually be bought at a sale. Commit to not buying at retail prices again. Look in newspapers, wait for sales and be patient.
b) Cook at home a lot more often. Freeze leftovers. Plan you food needs for the week. Make your lunch for work instead of buying it each day.
c) Read magazines, get DVDs and Videos for free from your local library.
d) Take up a hobby. Get busy - shop less. Maybe your hobby can create some income?
e) Give up the coffee bought while shopping or at work.
f) Maybe if you tried you could get away with only 1 car. Travel by bus or train if possible.
Tip #4. Don't compare yourself with others.
If you spend to keep up with others, think whether they may be in a similar position to you. Work out and understand how much you can spend and how much needs to be put aside for saving or emergencies.
Tip #5. Pay off one small debt completely.
This will give you a boost and help you keep on track more easily and you'll be more motivated to pay off all the debts.
Tip #6. Keep some fun money.
This process needs to be fun, not a misery. If it becomes a chore you will be tempted not to meet your goals. Keep some money aside that allows you the freedom to spend on things you want, occasionally. You'll feel so much better about spending on items that you can afford.
To truly solve your debt problems you need to keep yourself under control. There's no one else who can do this for you. Ask for God's help also. You'll be so glad you did, once the debt burden has been lifted and you can become your own person.
You can get additional specialized help, if you need it. Your debt can be an opportunity for you to give yourself a BIG pay raise and to reach financial freedom. Check out the PayRaise Professors Debt Elimination System by clicking on this link. Click Here!.
Saturday, May 5, 2007
How to Save Real Money When Buying Nearly Anything at Auction
Auctions are a fun, yet sometimes stressful way to buy goods. It could be a car, it could be real estate, it could be antiques or items for the garden and around the home. You can pick up a bargain or get caught. Learning a few tricks can make this process a lot more enjoyable and you can save money too.
There are a few tricks you need to learn to make the auction process profitable and enjoyable. Ready to start? Let's go.
1. Before the auction starts.
a) Ensure you have sufficient cash or credit availability before you leave home. Bring a pen.
b) Arrive early. Buy a catalog. You can wander around and look at the items for sale more easily at a more leisurely pace. Mark the items that interest you.
c) Mentally, work out what you think you will spend on those items, or write this down on the catalog against the item number.
d) Ensure you find out what the extra fees and charges are that add to the total bid price.
e) Go back to the items you think you will bid on and check them out closely. Look for defects, authenticity and overall condition. Set your bid limit and stick to it. There will be other bargains.
f) Keep your personal belongings safe at all times. Don't let your handbag, purse or wallet out of your possession at any time.
2. During the Auction.
a) Listen to the Auctioneer's opening instructions. Take note of payment terms, pick-up and security conditions.
b) Don't be too keen to always bid first. It's best to leave your bidding towards the end when bidding is starting to slow.
c) Get to know how the auctioneer works and what attracts his attention.
d) If you feel you need to start with an opening bid, don't start with a ridiculously low bid. This will irritate the auctioneer and slow down the auction process. Start with a sensible, but low bid, if you want to bid first.
e) If there are many lots and the auction is continuing for most of the day, you may find towards the end of the day people get a bit tired, bored or have left and there are bargains to be had.
f) If the winning bidder has responsibility for their items make sure you know where your items are or collect them and place them together so you can keep them secure as the auction progresses.
g) Don't get carried away with the process. Keep your wits about you. Don't get caught up in a bidding war - unless it is below your set limit. Let others bid it out. Come in towards the last with your bids.
h) Learn how quickly the Auctioneer shuts down the bidding process and moves to the next item. There isn't much time usually.
3. After the Auction.
a) Guard your property, know what is yours. Put it all together in one place, if possible, so you can keep it safe, if this was not done during the auction.
b) Check your records closely against the Auction office records before you hand over that hard-earned cash or credit card.
c) If you lost out to someone for an item you really wanted, why not go up to them after the auction and see if they want to sell? Sometimes this will be successful.
These are just some tips and hints on how you can spend an enjoyable time at an auction, coming away with some bargains, hopefully and saving some real money.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
There are a few tricks you need to learn to make the auction process profitable and enjoyable. Ready to start? Let's go.
1. Before the auction starts.
a) Ensure you have sufficient cash or credit availability before you leave home. Bring a pen.
b) Arrive early. Buy a catalog. You can wander around and look at the items for sale more easily at a more leisurely pace. Mark the items that interest you.
c) Mentally, work out what you think you will spend on those items, or write this down on the catalog against the item number.
d) Ensure you find out what the extra fees and charges are that add to the total bid price.
e) Go back to the items you think you will bid on and check them out closely. Look for defects, authenticity and overall condition. Set your bid limit and stick to it. There will be other bargains.
f) Keep your personal belongings safe at all times. Don't let your handbag, purse or wallet out of your possession at any time.
2. During the Auction.
a) Listen to the Auctioneer's opening instructions. Take note of payment terms, pick-up and security conditions.
b) Don't be too keen to always bid first. It's best to leave your bidding towards the end when bidding is starting to slow.
c) Get to know how the auctioneer works and what attracts his attention.
d) If you feel you need to start with an opening bid, don't start with a ridiculously low bid. This will irritate the auctioneer and slow down the auction process. Start with a sensible, but low bid, if you want to bid first.
e) If there are many lots and the auction is continuing for most of the day, you may find towards the end of the day people get a bit tired, bored or have left and there are bargains to be had.
f) If the winning bidder has responsibility for their items make sure you know where your items are or collect them and place them together so you can keep them secure as the auction progresses.
g) Don't get carried away with the process. Keep your wits about you. Don't get caught up in a bidding war - unless it is below your set limit. Let others bid it out. Come in towards the last with your bids.
h) Learn how quickly the Auctioneer shuts down the bidding process and moves to the next item. There isn't much time usually.
3. After the Auction.
a) Guard your property, know what is yours. Put it all together in one place, if possible, so you can keep it safe, if this was not done during the auction.
b) Check your records closely against the Auction office records before you hand over that hard-earned cash or credit card.
c) If you lost out to someone for an item you really wanted, why not go up to them after the auction and see if they want to sell? Sometimes this will be successful.
These are just some tips and hints on how you can spend an enjoyable time at an auction, coming away with some bargains, hopefully and saving some real money.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
How to Save Real Money When Shopping for a Used Car from a Private Seller
Apart from your home, this can be one of the largest financial expenditures and therefore one of the most important to your financial well-being. If you can learn a few rules and remember some proven tips then this can be an enjoyable experience. Here's how.
There are a few major items to check out when buying any used car from private sellers and they are listed below. Follow these guidelines BEFORE you pay the deposit and you will reduce your chances of buying a headache. You want this car to run cheaply, keep its resale value, be reliable and look good. Ready to start?
Look over the car generally first. If you think it is suitable, follow these steps.
Check the Title.
It is no use paying good money for what seems to be a bargain, when in a few weeks or months the car is repossessed due to unpaid debts attached to it. There are several ways to check this out depending on your local circumstances:
1. Check the owner details with your local or state government agency and whether there is money still owed on the vehicle.
2. Some agencies can also advise whether the car has been written off or wrecked, and then rebuilt. Definitely stay away from a car that has been "reborn" since your resale value will suffer when you try to sell it eventually.
Check the Authenticity.
1. Look at the Registration papers and ensure that the registration plates, the chassis number or vehicle identification number and engine number are EXACTLY the same as the Registration details.
2. In older cars look at the chassis number on the car and ensure it has not been tampered with. Make sure it looks genuine - not extra clean and just repainted. This could mean that the number has been tampered with by grinding off the old number and replacing it with a new one. Stay right away from a car in this condition.
3. If the car has log books and/or owners purchase papers all the better. Look through them carefully and check these details against the answers you receive from the questions you ask in 4.).
4. Talk to the owner(s) and ask the following questions. If you notice hesitancy or you think they may not be genuine be very, very careful.
a) How long have you owned the car?
b) Do you know any of the car's history prior to your purchase?
c) To your knowledge, are the miles or kilometers genuine?
d) What repairs or work have you had done to the car? Do you have receipts for the work?
Check the Car Body
1. Look for rust. This is the major risk when buying second-hand cars. If you are not sure how to do this have a qualified panel-beater or rust repairer check it out. If you want to do this yourself look for the telltale signs of bubbles under the paint or brown/orange color in the following areas:
a) Under the mudguards or fenders.
b) Around each door, especially under the door.
c) In the floor. Lift the mats and carpets if you can, and check out carefully.
d) Around the windscreen, where it meets the body.
e) Around the roof, especially in the gutters.
2. Look for panel damage and/or repair. Do the panels match properly? Is the paint color consistent on every panel? Has the whole car been repainted recently? If it has had a recent paint job, what is it covering? It could be covering cheap rust repair or panel work.
3. Look under the car. Is it straight and clean? If it's very dirty and the under floor is bent out of shape it could mean the car has had a hard life off the normal roads. This could mean extra stress on steering and suspension components.
4. Look at the paint color. The most serviceable color, and best for resale generally, is white. Darker colors may look good but they show the dirt more and are harder to match if you need minor panel repairs.
Check the Motor.
1. If you are not sure how to do this, have a qualified motor mechanic or your road service organization check it out. If you want to do this yourself look in the following areas:
a) Does the car blow smoke at start up?
b) Is the motor very oily and dirty? Does it look too clean, just washed?
c) Does under the oil filler cap look like the oil is a milky mixture, not black?
d) Does the radiator show bubbles being formed in the water when the motor is running?
e) Are the other fluid levels low?
If any of these problems show up then you may need some more expert help.
Check the Gearbox.
1. Again, if you are not sure how to do this have a qualified motor mechanic or your road service organization check it out. If you want to do this yourself look in the following areas:
Automatics -
a) Is the oil level on the dipstick correct and clean?
b) Does it change gears correctly when driven?
c) Is the gearbox clean and not showing oil leaks?
d) Does it sound OK when being driven or is there a whine at certain speeds?
If you cannot say Yes to these questions you may need some expert help.
Manuals -
a) Is the gearbox clean and not showing oil leaks?
b) Does it sound OK when being driven or is there a whine at certain speeds?
c) Is the gear change smooth and quiet?
d) Does the clutch work properly, with no shuddering at take-off?
If you cannot say Yes to these questions you may need some expert help.
Check the Interior.
Look for these potential problems.
a) Always check upholstery under seat covers - no matter how nice they look.
b) Look for seat belt wear.
c) Do all the gauges and controls work properly?
d) Is the headlining in place correctly, not dropping or coming undone?
e) Does it look cared for, or has it been neglected?
There are other components such as suspension, brakes, air-conditioning and steering that can also cost significant amounts of money to repair or replace, but these are usually serviced by experts.
These are just some basic checks that you can do when looking to buy a used car. Use your common sense. Keep in mind, as with any private purchase, Buyer Beware. If you think you are out of your depth in any of these major areas, it may be better to have the vehicle checked by an expert.
These are just some general tips and hints from my experiences in buying and selling cars over a long period of time. I am passing them on to you to help you with your personal finances. You need to be able to save money wherever you can.
For hints on how to bargain when buying a used car from a private seller see my other article titled "How to Save Real Money When Bargaining With a Private Seller for a Used Car".
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
There are a few major items to check out when buying any used car from private sellers and they are listed below. Follow these guidelines BEFORE you pay the deposit and you will reduce your chances of buying a headache. You want this car to run cheaply, keep its resale value, be reliable and look good. Ready to start?
Look over the car generally first. If you think it is suitable, follow these steps.
Check the Title.
It is no use paying good money for what seems to be a bargain, when in a few weeks or months the car is repossessed due to unpaid debts attached to it. There are several ways to check this out depending on your local circumstances:
1. Check the owner details with your local or state government agency and whether there is money still owed on the vehicle.
2. Some agencies can also advise whether the car has been written off or wrecked, and then rebuilt. Definitely stay away from a car that has been "reborn" since your resale value will suffer when you try to sell it eventually.
Check the Authenticity.
1. Look at the Registration papers and ensure that the registration plates, the chassis number or vehicle identification number and engine number are EXACTLY the same as the Registration details.
2. In older cars look at the chassis number on the car and ensure it has not been tampered with. Make sure it looks genuine - not extra clean and just repainted. This could mean that the number has been tampered with by grinding off the old number and replacing it with a new one. Stay right away from a car in this condition.
3. If the car has log books and/or owners purchase papers all the better. Look through them carefully and check these details against the answers you receive from the questions you ask in 4.).
4. Talk to the owner(s) and ask the following questions. If you notice hesitancy or you think they may not be genuine be very, very careful.
a) How long have you owned the car?
b) Do you know any of the car's history prior to your purchase?
c) To your knowledge, are the miles or kilometers genuine?
d) What repairs or work have you had done to the car? Do you have receipts for the work?
Check the Car Body
1. Look for rust. This is the major risk when buying second-hand cars. If you are not sure how to do this have a qualified panel-beater or rust repairer check it out. If you want to do this yourself look for the telltale signs of bubbles under the paint or brown/orange color in the following areas:
a) Under the mudguards or fenders.
b) Around each door, especially under the door.
c) In the floor. Lift the mats and carpets if you can, and check out carefully.
d) Around the windscreen, where it meets the body.
e) Around the roof, especially in the gutters.
2. Look for panel damage and/or repair. Do the panels match properly? Is the paint color consistent on every panel? Has the whole car been repainted recently? If it has had a recent paint job, what is it covering? It could be covering cheap rust repair or panel work.
3. Look under the car. Is it straight and clean? If it's very dirty and the under floor is bent out of shape it could mean the car has had a hard life off the normal roads. This could mean extra stress on steering and suspension components.
4. Look at the paint color. The most serviceable color, and best for resale generally, is white. Darker colors may look good but they show the dirt more and are harder to match if you need minor panel repairs.
Check the Motor.
1. If you are not sure how to do this, have a qualified motor mechanic or your road service organization check it out. If you want to do this yourself look in the following areas:
a) Does the car blow smoke at start up?
b) Is the motor very oily and dirty? Does it look too clean, just washed?
c) Does under the oil filler cap look like the oil is a milky mixture, not black?
d) Does the radiator show bubbles being formed in the water when the motor is running?
e) Are the other fluid levels low?
If any of these problems show up then you may need some more expert help.
Check the Gearbox.
1. Again, if you are not sure how to do this have a qualified motor mechanic or your road service organization check it out. If you want to do this yourself look in the following areas:
Automatics -
a) Is the oil level on the dipstick correct and clean?
b) Does it change gears correctly when driven?
c) Is the gearbox clean and not showing oil leaks?
d) Does it sound OK when being driven or is there a whine at certain speeds?
If you cannot say Yes to these questions you may need some expert help.
Manuals -
a) Is the gearbox clean and not showing oil leaks?
b) Does it sound OK when being driven or is there a whine at certain speeds?
c) Is the gear change smooth and quiet?
d) Does the clutch work properly, with no shuddering at take-off?
If you cannot say Yes to these questions you may need some expert help.
Check the Interior.
Look for these potential problems.
a) Always check upholstery under seat covers - no matter how nice they look.
b) Look for seat belt wear.
c) Do all the gauges and controls work properly?
d) Is the headlining in place correctly, not dropping or coming undone?
e) Does it look cared for, or has it been neglected?
There are other components such as suspension, brakes, air-conditioning and steering that can also cost significant amounts of money to repair or replace, but these are usually serviced by experts.
These are just some basic checks that you can do when looking to buy a used car. Use your common sense. Keep in mind, as with any private purchase, Buyer Beware. If you think you are out of your depth in any of these major areas, it may be better to have the vehicle checked by an expert.
These are just some general tips and hints from my experiences in buying and selling cars over a long period of time. I am passing them on to you to help you with your personal finances. You need to be able to save money wherever you can.
For hints on how to bargain when buying a used car from a private seller see my other article titled "How to Save Real Money When Bargaining With a Private Seller for a Used Car".
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
How to Save Real Money When Bargaining With a Private Seller for a Used Car
Apart from your home, this can be one of the largest financial expenditures and therefore one of the most important to your financial well-being. If you can learn a few rules and remember some proven tips then this can be an enjoyable experience. Enjoyable, because you can eliminate some of the major pitfalls. Here's how.
There are a few ways to honestly and ethically get the car of your dreams for a reasonable price. Follow these tips and hints and you may be surprised how much the seller will discount the advertised price.
Ready to Start? Lets' go.
1. Do this before you even see the car.
When you see the car on the Internet or in the newspaper or the magazine and you are interested in checking it out more closely, do these things first:
a) Check out the price of this car against others of similar specifications.
b) Have your finances worked out in advance. Set your spending limit and stick to it. Offering cash is usually a better option than saying you will need to organize finance.
c) Contact the seller and ask the following questions:
- Is the car still for sale?
- How many kilometers or miles has it done?
- How long have you owned the car for?
- What color is it?
- What is the overall condition of the car?
- How negotiable is the price?
If you're satisfied with the answers to these questions ask if you can see the car at a mutually convenient time.
2. Do these things once you see the car.
a) Check it out closely in all areas and test whether the answers you were given over the phone were correct.
b) See if there are things that need to be done to get the car to your standard and mentally work out their costs. For example, does the car need new tires, does it need a new windscreen?
c) Go for a test drive. Not with the stereo going all the time though, so you can hear the car's noises.
d) Work out, silently, what you think you are prepared to pay as a maximum for this car. Make sure it is equal to, or less than your set limit.
3. Remember these things once you have decided that you will purchase the car, if the price is right.
a) This is not the only car in the world for you. There are others. Maybe, they will be even better.
b) Don't be in a rush to conclude the deal. Take your time.
c) Don't be swayed by seller saying "I have another buying waiting".
4. Do these things when negotiating.
a) Say "I'd like to make an offer".
b) Tell the seller the costs of the items you think will need fixing once you purchase the car.
c) Make your offer taking b) into account and leaving room to move upwards on your price to the maximum you set.
For example, say your maximum spend is $10,000, the car is advertised for $12,000 but you have found $2,000 of work to be done to bring it up to your standard. Make an offer for $8,000 ($10,000-$2,000). The seller may respond by saying that $10,000 is his minimum. After taking a suitable amount of time to consider this response, you can say "I'll go half way, is $9,000 OK? If the seller agrees, then you have purchased the car for $3,000 less than advertised. However, your $9,000 price plus your $2,000 of expenses is $11,000, $1,000 over your limit. No worries, just delay some of the work until you can afford it. The seller feels a bit of pain, you feel a bit of pain and you both are reasonably satisfied with the deal.
These are just some general tips and hints from my experiences in buying and selling cars over a long period of time. I am passing them on to you to help you with your personal finances. You need to be able to save money wherever you can.
For details on what to look for when buying a used car from a private seller see my other article titled "How to Save Real Money When Purchasing a Used Car from a Private Seller".
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
There are a few ways to honestly and ethically get the car of your dreams for a reasonable price. Follow these tips and hints and you may be surprised how much the seller will discount the advertised price.
Ready to Start? Lets' go.
1. Do this before you even see the car.
When you see the car on the Internet or in the newspaper or the magazine and you are interested in checking it out more closely, do these things first:
a) Check out the price of this car against others of similar specifications.
b) Have your finances worked out in advance. Set your spending limit and stick to it. Offering cash is usually a better option than saying you will need to organize finance.
c) Contact the seller and ask the following questions:
- Is the car still for sale?
- How many kilometers or miles has it done?
- How long have you owned the car for?
- What color is it?
- What is the overall condition of the car?
- How negotiable is the price?
If you're satisfied with the answers to these questions ask if you can see the car at a mutually convenient time.
2. Do these things once you see the car.
a) Check it out closely in all areas and test whether the answers you were given over the phone were correct.
b) See if there are things that need to be done to get the car to your standard and mentally work out their costs. For example, does the car need new tires, does it need a new windscreen?
c) Go for a test drive. Not with the stereo going all the time though, so you can hear the car's noises.
d) Work out, silently, what you think you are prepared to pay as a maximum for this car. Make sure it is equal to, or less than your set limit.
3. Remember these things once you have decided that you will purchase the car, if the price is right.
a) This is not the only car in the world for you. There are others. Maybe, they will be even better.
b) Don't be in a rush to conclude the deal. Take your time.
c) Don't be swayed by seller saying "I have another buying waiting".
4. Do these things when negotiating.
a) Say "I'd like to make an offer".
b) Tell the seller the costs of the items you think will need fixing once you purchase the car.
c) Make your offer taking b) into account and leaving room to move upwards on your price to the maximum you set.
For example, say your maximum spend is $10,000, the car is advertised for $12,000 but you have found $2,000 of work to be done to bring it up to your standard. Make an offer for $8,000 ($10,000-$2,000). The seller may respond by saying that $10,000 is his minimum. After taking a suitable amount of time to consider this response, you can say "I'll go half way, is $9,000 OK? If the seller agrees, then you have purchased the car for $3,000 less than advertised. However, your $9,000 price plus your $2,000 of expenses is $11,000, $1,000 over your limit. No worries, just delay some of the work until you can afford it. The seller feels a bit of pain, you feel a bit of pain and you both are reasonably satisfied with the deal.
These are just some general tips and hints from my experiences in buying and selling cars over a long period of time. I am passing them on to you to help you with your personal finances. You need to be able to save money wherever you can.
For details on what to look for when buying a used car from a private seller see my other article titled "How to Save Real Money When Purchasing a Used Car from a Private Seller".
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
5 Critically Important Questions to Ask Yourself Before Applying for That Loan
Loans are easy to apply for and receive in our society. So easy, in fact, that sometimes we don't give a second thought whether this, or another loan, is in our best financial interests. There are 5 key questions that can tell you whether a loan is right for you, financially.
If you answer these questions honestly and creatively, you may be surprised at the outcomes.
Ready to start? Let's go.
Question #1. Can I really afford it?
This basic question is sometimes overlooked. Some folks think that as long as there is some money left over from the pay each week or month that it's fine to put this towards another loan. Wrong! Unless you understand your true income, expenditure, savings goals and retirement goals, how will you know whether the money you have spare after each pay can really be applied to a loan?
Setting up your personal/family budget is necessary if you want to know what you can afford. These can be found by searching on the Internet.
There are certain basic laws that apply to spending whether you know them or not. Some of these are:
a) If you regularly spend more than you earn you are setting yourself up for lifelong poverty.
b) If you borrow to buy short-lived assets (e.g. TV, DVD, car, boat, etc) the interest and repayments can continue at the same rate long after the asset has lost its value. That makes them a very expensive item.
c) If you pay for items like clothes and other household items by credit card it makes the items a lot more expensive than you think. Especially when the interest rate is around 13 - 15% per year.
d) Credit card debt, while easy to acquire can be very dangerous if you only pay the minimum each month.
Question #2. Do I really need it?
Advertising today is so sophisticated that it makes you think there are so many things that you just cannot do without. However, just take a minute to ask yourself these questions:
Do I really need the updated car? Isn't the current one good enough?
Isn't our furniture still serviceable without resorting to an upgrade?
Do I really need all the latest electronic wizardry?
Are all the latest fashions a necessity? Am I really a better, more likeable person by buying them?
The purchase of these items is often made at the expense of your future financial well-being and overall happiness. Surely, the fleeting happiness of today's purchase wears pretty thin, compared to the worry and stress of over-extended credit and unpaid bills.
It is best to try every avenue before resorting to a loan.
Question #3. How will this loan affect my financial future?
A loan can have an adverse effect on your financial situation through many ways. Some of them are listed below:
a) If you default on a loan it can make it much harder in the future to borrow again.
b) If you damage your credit rating your borrowing costs can increase.
c) Borrowing for an asset whose useful life is less than the life of the loan is a sure way to pay a lot more than the worth of the asset. Money that could have paid down credit cards or been used for savings.
d) Saving for things you need will put you in a better financial position and increase you borrowing potential for your mortgage.
Question #4. What else could I do with the repayment money?
If you were to decide to defer or not purchase the item on credit, imagine what you could do with the money?
- You could put it in a savings account. Save for holidays, the car upgrade, kids college fees or home renovations.
- You could start a retirement savings plan.
- You could pay off the credit cards in double quick time. If their interest rate is higher than any other of your debts, pay them off first.
- You could pay extra cash each month or fortnight off your mortgage.
Imagine how you'd feel once all the debt was gone and you were free to purchase those things you need for cash.
Aren't these ideas better than committing yourself to more debt and worry?
Question #5. Can I still purchase this item without resorting to a loan?
If there are items that you really need and you do not have the funds to pay for them, what else can you do?
Try these ideas:
- Do you have some other assets that are no longer being used? Sell them and use this money for your new purchase.
- Do you really need 2 cars? Why not sell 1 and use that money for your new purchase?
- What about increasing the 'cash-in'? You could apply for a higher paying job. You could get a second income. Maybe start a home based business on the Internet.
- Why not cut down on your weekly or monthly living expenditures? Buy generic products, only buy necessities, bargain with sellers and commit to only buying items at less than list price.
These are just a few suggestions to help you think twice or even three times BEFORE you go to apply for that loan. Your financial future is at stake here. If at all possible live within your means and save for what you need. You'll be happier and more stronger financially as a result.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
If you answer these questions honestly and creatively, you may be surprised at the outcomes.
Ready to start? Let's go.
Question #1. Can I really afford it?
This basic question is sometimes overlooked. Some folks think that as long as there is some money left over from the pay each week or month that it's fine to put this towards another loan. Wrong! Unless you understand your true income, expenditure, savings goals and retirement goals, how will you know whether the money you have spare after each pay can really be applied to a loan?
Setting up your personal/family budget is necessary if you want to know what you can afford. These can be found by searching on the Internet.
There are certain basic laws that apply to spending whether you know them or not. Some of these are:
a) If you regularly spend more than you earn you are setting yourself up for lifelong poverty.
b) If you borrow to buy short-lived assets (e.g. TV, DVD, car, boat, etc) the interest and repayments can continue at the same rate long after the asset has lost its value. That makes them a very expensive item.
c) If you pay for items like clothes and other household items by credit card it makes the items a lot more expensive than you think. Especially when the interest rate is around 13 - 15% per year.
d) Credit card debt, while easy to acquire can be very dangerous if you only pay the minimum each month.
Question #2. Do I really need it?
Advertising today is so sophisticated that it makes you think there are so many things that you just cannot do without. However, just take a minute to ask yourself these questions:
Do I really need the updated car? Isn't the current one good enough?
Isn't our furniture still serviceable without resorting to an upgrade?
Do I really need all the latest electronic wizardry?
Are all the latest fashions a necessity? Am I really a better, more likeable person by buying them?
The purchase of these items is often made at the expense of your future financial well-being and overall happiness. Surely, the fleeting happiness of today's purchase wears pretty thin, compared to the worry and stress of over-extended credit and unpaid bills.
It is best to try every avenue before resorting to a loan.
Question #3. How will this loan affect my financial future?
A loan can have an adverse effect on your financial situation through many ways. Some of them are listed below:
a) If you default on a loan it can make it much harder in the future to borrow again.
b) If you damage your credit rating your borrowing costs can increase.
c) Borrowing for an asset whose useful life is less than the life of the loan is a sure way to pay a lot more than the worth of the asset. Money that could have paid down credit cards or been used for savings.
d) Saving for things you need will put you in a better financial position and increase you borrowing potential for your mortgage.
Question #4. What else could I do with the repayment money?
If you were to decide to defer or not purchase the item on credit, imagine what you could do with the money?
- You could put it in a savings account. Save for holidays, the car upgrade, kids college fees or home renovations.
- You could start a retirement savings plan.
- You could pay off the credit cards in double quick time. If their interest rate is higher than any other of your debts, pay them off first.
- You could pay extra cash each month or fortnight off your mortgage.
Imagine how you'd feel once all the debt was gone and you were free to purchase those things you need for cash.
Aren't these ideas better than committing yourself to more debt and worry?
Question #5. Can I still purchase this item without resorting to a loan?
If there are items that you really need and you do not have the funds to pay for them, what else can you do?
Try these ideas:
- Do you have some other assets that are no longer being used? Sell them and use this money for your new purchase.
- Do you really need 2 cars? Why not sell 1 and use that money for your new purchase?
- What about increasing the 'cash-in'? You could apply for a higher paying job. You could get a second income. Maybe start a home based business on the Internet.
- Why not cut down on your weekly or monthly living expenditures? Buy generic products, only buy necessities, bargain with sellers and commit to only buying items at less than list price.
These are just a few suggestions to help you think twice or even three times BEFORE you go to apply for that loan. Your financial future is at stake here. If at all possible live within your means and save for what you need. You'll be happier and more stronger financially as a result.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
In Debt Over Your Head? These 5 Simple Steps Will Help
Debt has reached epic proportions in our society. Whether you're rich, poor or in between, you probably have enough debt to make you feel like giving up on your dreams of financial independence and living the comfortable life. There is a way out of this situation. The five simple steps to make this happen are listed below.
The next 5 steps are not difficult. They only take commitment. You can do it. The feeling of freedom and success when the bills are not hanging over your head will make this all worthwhile.
Ready to get stated? Let's go.
Step #1. Work out where you are now
You may not have looked at your financial position for a while. Maybe that's why you are suffering under a load of debt presently. But you need to take stock of your financial position now. Unless you know where you are now, it's hard to work out how to fix things.
Just get a pen and paper and all your credit card bills and look at the situation honestly. List out all your debts and their interest rates and the minimum monthly repayments.
Don't get worried about how much you owe. It's been said that anyone can get rid of all their debt within 5-7 years, including their mortgage. That means you too.
Step #2 Stop spending more than you earn NOW
This is the first thing that must be done to start the ball rolling for your financial success. This is most probably the reason you need to take action now. Look at your living expenses and cut out those things you can't afford.
Also cut up all the credit cards except one for emergencies and commit yourself to only spending what you can afford from your own income.
Step #3. Find some cash to pay down those debts
Once you have come to grips with Step #2, the next step is to work out ways to put some money aside every week or month to start paying down those debts, preferably faster than the minimum monthly requirement. Pay as much as you can. It's better to pay down these debts than to put the money in the bank. This is because the credit card interest is a lot more than you can receive from the bank for funds on deposit. The aim is pay down the highest interest debt first.
If you have 2 credit cards with the same interest rate, pay off the one with the smallest balance first. That will give you a boost and the resolve to keep on going.
Step #4. Build a Savings Fund
Once you have those credit cards under control it's time to think about putting some funds aside to start building some savings. You'll be surprised how fast your money grows if you religiously keep adding to the balance and don't touch it. If you really need to purchase an expensive item like furniture or car it is better to save for it than to borrow, if at all possible.
Step #5. Pay Down That Mortgage.
Since the interest rate on your mortgage is usually a lot less than credit card and store debt you can leave this item till last. Also it is increasing in value over time - unlike your car, TV, Video, furniture and boat. You will be surprised how many years you can cut off your mortgage repayments by just adding a few extra dollars each month to the payment.
These a just a few basic rules to help you get back on your feet financially. The main principle here is to work on reducing your credit card debt. Once that is done use those freed up funds to build your nest egg and pay off the mortgage. That's the plan that works.
Now get those documents out, do the sums and start on your road to financial freedom.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
The next 5 steps are not difficult. They only take commitment. You can do it. The feeling of freedom and success when the bills are not hanging over your head will make this all worthwhile.
Ready to get stated? Let's go.
Step #1. Work out where you are now
You may not have looked at your financial position for a while. Maybe that's why you are suffering under a load of debt presently. But you need to take stock of your financial position now. Unless you know where you are now, it's hard to work out how to fix things.
Just get a pen and paper and all your credit card bills and look at the situation honestly. List out all your debts and their interest rates and the minimum monthly repayments.
Don't get worried about how much you owe. It's been said that anyone can get rid of all their debt within 5-7 years, including their mortgage. That means you too.
Step #2 Stop spending more than you earn NOW
This is the first thing that must be done to start the ball rolling for your financial success. This is most probably the reason you need to take action now. Look at your living expenses and cut out those things you can't afford.
Also cut up all the credit cards except one for emergencies and commit yourself to only spending what you can afford from your own income.
Step #3. Find some cash to pay down those debts
Once you have come to grips with Step #2, the next step is to work out ways to put some money aside every week or month to start paying down those debts, preferably faster than the minimum monthly requirement. Pay as much as you can. It's better to pay down these debts than to put the money in the bank. This is because the credit card interest is a lot more than you can receive from the bank for funds on deposit. The aim is pay down the highest interest debt first.
If you have 2 credit cards with the same interest rate, pay off the one with the smallest balance first. That will give you a boost and the resolve to keep on going.
Step #4. Build a Savings Fund
Once you have those credit cards under control it's time to think about putting some funds aside to start building some savings. You'll be surprised how fast your money grows if you religiously keep adding to the balance and don't touch it. If you really need to purchase an expensive item like furniture or car it is better to save for it than to borrow, if at all possible.
Step #5. Pay Down That Mortgage.
Since the interest rate on your mortgage is usually a lot less than credit card and store debt you can leave this item till last. Also it is increasing in value over time - unlike your car, TV, Video, furniture and boat. You will be surprised how many years you can cut off your mortgage repayments by just adding a few extra dollars each month to the payment.
These a just a few basic rules to help you get back on your feet financially. The main principle here is to work on reducing your credit card debt. Once that is done use those freed up funds to build your nest egg and pay off the mortgage. That's the plan that works.
Now get those documents out, do the sums and start on your road to financial freedom.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
Saturday, April 7, 2007
Secrets the Supermarkets Don't Want You To Know When Doing Your Weekly Food Shopping
There are many ways supermarkets entice you to spend more than you planned. Some of them are listed below. Also, some ways you can tips the scales in your favor have been added.
Check out these Secrets and be armed so you can shop more intelligently and save more.
Secret #1. Check newspaper ads for the sale items available this week. Don't buy them though, just because they are on special. Buy them only if you need them.
Secret #2. Don't do your weekly food shopping on an empty stomach. The sights and smells are often too hard to resist and as a result your shopping budget can be in tatters.
Secret #3. Know how to compare brands, sizes, weights per $. Use a calculator if you have to. Don't be fooled by the size or claims of the packaging. Do the sums yourself.
Secret #4. If you can avoid it, don't buy goods at eye level. These are often more expensive. Try to buy from the higher or lower shelves.
Secret #5. Make out a list of items you need for the week before you leave home. Stick to the list as much as possible.
Secret #6. Ensure you have set a $ limit on your weekly food shopping and stick to it. Think creatively how you can get the most from your shopping dollar. You'll be surprised with your ideas.
Secret #7. Don't buy items at the check-outs. They are usually impulse purchases - not things you really need.
Secret #8. Sometimes complementary items such as drinks and pretzels/chips are placed side-by-side. This plays on your weakness to impulse shop. Unless it's on your list and it's at a great price let it go. Learn what kinds of items are considered impulsive, decide if you really want or need them, and cushion your grocery budget to pay for them
Secret #9. Pay attention to package sizes. Does 10% extra mean that the price is still the same or has the price been increased too? Learn to spot these claims and test them out for yourself.
Secret #10. Sometimes you'll find the same type of goods in 2 or 3 places. Take cheese for example. It will most probably be cheaper in the cheese rack than in the deli or on cheese tables.
Secret #11. Don't buy something, such as bread, just because it smells so good. Look at your list and make sure you really need it.
Secret #12.Think twice before buying an item because of a rebate. Less that 6% of shoppers ever redeem rebates. Before you buy, ask yourself "Will I really take the time to redeem the rebate?"
These a just a few helpful hints on ways to save money every time you shop at the supermarket. Look at your budget and see how much you could save using these ideas.
If you are looking for a great budget tool to help get your personal finances in shape just click on the links below.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
Check out these Secrets and be armed so you can shop more intelligently and save more.
Secret #1. Check newspaper ads for the sale items available this week. Don't buy them though, just because they are on special. Buy them only if you need them.
Secret #2. Don't do your weekly food shopping on an empty stomach. The sights and smells are often too hard to resist and as a result your shopping budget can be in tatters.
Secret #3. Know how to compare brands, sizes, weights per $. Use a calculator if you have to. Don't be fooled by the size or claims of the packaging. Do the sums yourself.
Secret #4. If you can avoid it, don't buy goods at eye level. These are often more expensive. Try to buy from the higher or lower shelves.
Secret #5. Make out a list of items you need for the week before you leave home. Stick to the list as much as possible.
Secret #6. Ensure you have set a $ limit on your weekly food shopping and stick to it. Think creatively how you can get the most from your shopping dollar. You'll be surprised with your ideas.
Secret #7. Don't buy items at the check-outs. They are usually impulse purchases - not things you really need.
Secret #8. Sometimes complementary items such as drinks and pretzels/chips are placed side-by-side. This plays on your weakness to impulse shop. Unless it's on your list and it's at a great price let it go. Learn what kinds of items are considered impulsive, decide if you really want or need them, and cushion your grocery budget to pay for them
Secret #9. Pay attention to package sizes. Does 10% extra mean that the price is still the same or has the price been increased too? Learn to spot these claims and test them out for yourself.
Secret #10. Sometimes you'll find the same type of goods in 2 or 3 places. Take cheese for example. It will most probably be cheaper in the cheese rack than in the deli or on cheese tables.
Secret #11. Don't buy something, such as bread, just because it smells so good. Look at your list and make sure you really need it.
Secret #12.Think twice before buying an item because of a rebate. Less that 6% of shoppers ever redeem rebates. Before you buy, ask yourself "Will I really take the time to redeem the rebate?"
These a just a few helpful hints on ways to save money every time you shop at the supermarket. Look at your budget and see how much you could save using these ideas.
If you are looking for a great budget tool to help get your personal finances in shape just click on the links below.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
5 Key Personal Finance Problems - Which One Do You Want to Overcome?
Personal financial problems can rob you of happiness and contentment. Learning about these key issues now can save you years of heartache later on. It's your life - why not enjoy it?
You can take control of your personal finances by applying the lessons listed below.
Problem #1. Spending Without Knowing Your Limits
As in business, you will not last long financially if you spend without regard to your income. Knowing your spending limits is not hard to do. Just find the answers to these 4 easy questions:
Question #1. What is my take-home income per pay? (that is your total income less taxes)
Question #2. What do I need to spend to live?
Question #3. What is the difference after taking spending from income?
Question #4. Can I save enough for my future from the answer in Question #3?
There are many tools to help you gain answers to these questions. You can find many on the Internet. Helpful Hint: Find one that helps you set your savings targets, checks your ability to meet the targets and then shows your progress towards your goals.
Problem #2. Spending Without Setting Savings Targets
It's OK to spend to the limits of your income but that does not provide you with any buffer for urgent purchases, or protect you from a financial emergency. Urgent purchases could be renewing a broken fridge or stove, calling a plumber to fix a broken pipe or having to spend for major car repairs. Financial emergencies could be temporary loss of income or hospitalization of a family member. How would you survive financially in any of these situations?
You can begin to save today, it's easy. What if you went without your bought lunch each day at work? That saves you $1,000 per year on $5/day. What if you reduced your Starbuck's coffee by 1 each working day? That's another $1,000 per year on $5/day. Just those two amounts alone can mean a holiday for you, the beginnings of a savings plan, or an emergency buffer.
If you set a target of 10% of your take-home pay each payday that would be a good start. If you think creatively, you are sure to come up with ways to achieve this. Think of the peace of mind that would bring.
Problem #3. Spending Without Knowing How to Save
There are many easy ways for you to save money that allow you the freedom to spend when you see something you really want. Some of these are:
1. Don't buy on impulse. Ask yourself 2 or 3 times "Do I really NEED this?" before you buy. If you cannot answer with a resounding "YES " let it go.
2. Don't buy things JUST because they are on sale. Only buy things you need. If you do need them wait a few weeks the price may fall even further.
3. Don't buy the latest fashion items at the height of the season. Just wait a while. The prices usually reduce.
4. Don't compare yourself with others and what they have. They may have purchased making the same finance mistakes as you.
5. Set yourself a savings target. Put this money aside each payday BEFORE spending any of your pay.
Problem #4. Spending Without Feeling Satisfied
Spending can leave you feeling pretty shallow and unrewarded when you purchase on a whim or fancy when you really know you cannot afford the item. What's more you may not even use it. What a waste!
To really FEEL GOOD ABOUT SHOPPING and spending you need to know these 4 things:
1. My budget allows me the freedom to purchase this item
2. I have the cash put away already for this purchase (even though I will use my credit card for the transaction).
3. This purchase is something that I really want and will use.
4. I have purchased this item at the best possible price, saving as much as I can.
Problem #5. Spending Without Caring About Your Future
Unless you are planning for your future and financial security, you cannot be really happy. There are always worries lurking in your mind about how you would survive in a financial emergency if you have no savings. It can be very rewarding to see how quickly your savings multiply over time with only a small investment each payday.
Did you know that by saving just $5 every day this would grow into $1,867 in 12 months at 5% interest and then it grows into a whopping $10,343 in 5 years? Isn't your future worth investing in?
Why not start to overcome your personal finance problems today? Looking back you'll be so glad you did!
If you click on the links below you will be taken to a great budget solution. It helps you set your savings targets, checks your ability to meet the targets and then shows your progress towards your goals.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
You can take control of your personal finances by applying the lessons listed below.
Problem #1. Spending Without Knowing Your Limits
As in business, you will not last long financially if you spend without regard to your income. Knowing your spending limits is not hard to do. Just find the answers to these 4 easy questions:
Question #1. What is my take-home income per pay? (that is your total income less taxes)
Question #2. What do I need to spend to live?
Question #3. What is the difference after taking spending from income?
Question #4. Can I save enough for my future from the answer in Question #3?
There are many tools to help you gain answers to these questions. You can find many on the Internet. Helpful Hint: Find one that helps you set your savings targets, checks your ability to meet the targets and then shows your progress towards your goals.
Problem #2. Spending Without Setting Savings Targets
It's OK to spend to the limits of your income but that does not provide you with any buffer for urgent purchases, or protect you from a financial emergency. Urgent purchases could be renewing a broken fridge or stove, calling a plumber to fix a broken pipe or having to spend for major car repairs. Financial emergencies could be temporary loss of income or hospitalization of a family member. How would you survive financially in any of these situations?
You can begin to save today, it's easy. What if you went without your bought lunch each day at work? That saves you $1,000 per year on $5/day. What if you reduced your Starbuck's coffee by 1 each working day? That's another $1,000 per year on $5/day. Just those two amounts alone can mean a holiday for you, the beginnings of a savings plan, or an emergency buffer.
If you set a target of 10% of your take-home pay each payday that would be a good start. If you think creatively, you are sure to come up with ways to achieve this. Think of the peace of mind that would bring.
Problem #3. Spending Without Knowing How to Save
There are many easy ways for you to save money that allow you the freedom to spend when you see something you really want. Some of these are:
1. Don't buy on impulse. Ask yourself 2 or 3 times "Do I really NEED this?" before you buy. If you cannot answer with a resounding "YES " let it go.
2. Don't buy things JUST because they are on sale. Only buy things you need. If you do need them wait a few weeks the price may fall even further.
3. Don't buy the latest fashion items at the height of the season. Just wait a while. The prices usually reduce.
4. Don't compare yourself with others and what they have. They may have purchased making the same finance mistakes as you.
5. Set yourself a savings target. Put this money aside each payday BEFORE spending any of your pay.
Problem #4. Spending Without Feeling Satisfied
Spending can leave you feeling pretty shallow and unrewarded when you purchase on a whim or fancy when you really know you cannot afford the item. What's more you may not even use it. What a waste!
To really FEEL GOOD ABOUT SHOPPING and spending you need to know these 4 things:
1. My budget allows me the freedom to purchase this item
2. I have the cash put away already for this purchase (even though I will use my credit card for the transaction).
3. This purchase is something that I really want and will use.
4. I have purchased this item at the best possible price, saving as much as I can.
Problem #5. Spending Without Caring About Your Future
Unless you are planning for your future and financial security, you cannot be really happy. There are always worries lurking in your mind about how you would survive in a financial emergency if you have no savings. It can be very rewarding to see how quickly your savings multiply over time with only a small investment each payday.
Did you know that by saving just $5 every day this would grow into $1,867 in 12 months at 5% interest and then it grows into a whopping $10,343 in 5 years? Isn't your future worth investing in?
Why not start to overcome your personal finance problems today? Looking back you'll be so glad you did!
If you click on the links below you will be taken to a great budget solution. It helps you set your savings targets, checks your ability to meet the targets and then shows your progress towards your goals.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
Tuesday, April 3, 2007
Do You Make These Mistakes With Personal Budgeting?
Spending habits, lifestyle, financial freedom and security are all topics close to everyone's heart. However, training to properly manage all these tasks successfully, has not been delivered consistently, so you are left to gain this knowledge on your own, often through trial and error. Learning about these common mistakes may keep you from going down the same path.
Let's list them out shall we?
#1. Spending More Than You Earn.
This would have to be the number one mistake made by millions of worried folks. Just stop and think about whose money it is you are really spending if you make this mistake. It is the banks or the Credit Card providers. The cost of this service is the interest charge. This could be the reason you never seem to able to get ahead.
Proven Tip: Spend within your means. Try to develop a mindset that pits your skills against the malls and try to SAVE money at every opportunity - not just spend.
#2. Not Saving for Those Large Purchases.
You will be forever chasing your tail financially, if you need to purchase your long-lived assets, such as furniture and white goods, on credit. They only have a limited life and are reducing in value all the time. Yet your credit charges remain the same year after year.
Proven Tip: Put aside some money each week or each month towards those asset purchases.
#3. Spending Money on Things Just Because They Are On Sale
Would businesses survive for very long if they spent their scarce resources on any advertised special or any "hot" product of the moment? What if they filled their warehouses with "specials" that they won't use, or bought more raw materials than they needed just because they were advertised on a late night TV infomercial? This can happen to you too. Buying more clothes than you need, some of which may not even be worn! How about those products advertised on late night TV. Do you REALLY need them?
Proven Tip: Think twice or even three times BEFORE you reach for the Credit Card to spend on a sale item.
#4. Not Actively Looking for Ways to Boost Your Income
Just because you have a day job does not mean that you should not try to improve yourself by doing any or all of the following:
- Go to the local library and learn more about your favorite hobby
- Maybe you could turn your hobby into a money-making venture, many people do. Why not you?
- What about setting up your own website and promoting other people's product for a commission?
- Learn how to improve your resume - ready for that next job opportunity
- Take a course by distance or at your local college to make yourself more employable, ready for the next opportunity.
#5. Not Actively Seeking to Sell Off Old and Unused Household Items.
Most people have heaps of unused items in their garages or under their house. These will have value for someone. Why not load them in the trunk and take them to the monthly markets. You'd be surprised how much they can be sold for.
#6. Comparing Yourself with Others and Their Lifestyle.
How can you be sure that the people you compare yourself to, are not struggling with the same financial problems you are? Just look to yourself and to your real needs.
#7. Not putting funds aside for investing.
You can never get out of this situation if you only live day-to-day. Even if you can put aside $10 a day, there's $3,600 in the space of just one year - plus interest! Surely there is the daily work lunch and the purchased coffees that could be substituted for some savings. Think what you could do with that much cash!
#8. Not Committing to a Budget Plan
This is one of the main downfalls. You cannot expect to have different outcomes if you do the same things day after day. This will take a little dedication and willpower. But in the end it's worth it. Financial freedom, cash to purchase your holidays and Christmas presents. Less worry - more life.
This is a very short list of mistakes made by ordinary people. However, the solution to your finance woes is not that difficult. All you need is a little commitment, good tools and desire to be free from financial worries. Get control today.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
Let's list them out shall we?
#1. Spending More Than You Earn.
This would have to be the number one mistake made by millions of worried folks. Just stop and think about whose money it is you are really spending if you make this mistake. It is the banks or the Credit Card providers. The cost of this service is the interest charge. This could be the reason you never seem to able to get ahead.
Proven Tip: Spend within your means. Try to develop a mindset that pits your skills against the malls and try to SAVE money at every opportunity - not just spend.
#2. Not Saving for Those Large Purchases.
You will be forever chasing your tail financially, if you need to purchase your long-lived assets, such as furniture and white goods, on credit. They only have a limited life and are reducing in value all the time. Yet your credit charges remain the same year after year.
Proven Tip: Put aside some money each week or each month towards those asset purchases.
#3. Spending Money on Things Just Because They Are On Sale
Would businesses survive for very long if they spent their scarce resources on any advertised special or any "hot" product of the moment? What if they filled their warehouses with "specials" that they won't use, or bought more raw materials than they needed just because they were advertised on a late night TV infomercial? This can happen to you too. Buying more clothes than you need, some of which may not even be worn! How about those products advertised on late night TV. Do you REALLY need them?
Proven Tip: Think twice or even three times BEFORE you reach for the Credit Card to spend on a sale item.
#4. Not Actively Looking for Ways to Boost Your Income
Just because you have a day job does not mean that you should not try to improve yourself by doing any or all of the following:
- Go to the local library and learn more about your favorite hobby
- Maybe you could turn your hobby into a money-making venture, many people do. Why not you?
- What about setting up your own website and promoting other people's product for a commission?
- Learn how to improve your resume - ready for that next job opportunity
- Take a course by distance or at your local college to make yourself more employable, ready for the next opportunity.
#5. Not Actively Seeking to Sell Off Old and Unused Household Items.
Most people have heaps of unused items in their garages or under their house. These will have value for someone. Why not load them in the trunk and take them to the monthly markets. You'd be surprised how much they can be sold for.
#6. Comparing Yourself with Others and Their Lifestyle.
How can you be sure that the people you compare yourself to, are not struggling with the same financial problems you are? Just look to yourself and to your real needs.
#7. Not putting funds aside for investing.
You can never get out of this situation if you only live day-to-day. Even if you can put aside $10 a day, there's $3,600 in the space of just one year - plus interest! Surely there is the daily work lunch and the purchased coffees that could be substituted for some savings. Think what you could do with that much cash!
#8. Not Committing to a Budget Plan
This is one of the main downfalls. You cannot expect to have different outcomes if you do the same things day after day. This will take a little dedication and willpower. But in the end it's worth it. Financial freedom, cash to purchase your holidays and Christmas presents. Less worry - more life.
This is a very short list of mistakes made by ordinary people. However, the solution to your finance woes is not that difficult. All you need is a little commitment, good tools and desire to be free from financial worries. Get control today.
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
You Can Laugh at Money Worries – If You Gain These 7 Simple Skills
Worrying about your finances can be very draining on you and your family. However, there are a few basic skills, if mastered, can transform your finances and your life.
Personal finance and business finance are based on the same principles - only the scale is different. Let's see how business control their finances and apply it to your finances with 7 simple skills.
Skill #1. Learn Where Your Money Goes (Business controls its spending)
This skill is a very easy one to master, all it needs a little discipline. Just get a little diary, keep it with at all times and enter each spending transaction into it for a whole month. Do not leave anything out. Every coffee bought while you were out, every bought work lunch, every magazine and every item of clothing. Look at it and see where your funds are really going. Then think what you could have done without. If it was a work-day Starbuck's Coffee (say $5) - that's worth $1,000 per year! What you could you do with that? That's a short resort holiday or you could put it aside for emergencies.
Once you have the months' spending list, then group the items into categories. You could use Food, Clothing, Transport, Rent/House Payments, Medical and Car Payments etc.
Skill #2. Learn How Much You Really Have to Spend (Business knows what it has available to spend)
This is a little harder - but not much. List out your take-home pay (total income less taxes). Then take off your monthly payments such as house/rent, car, life insurance, credit card and medical insurance. The balance should be what is left to spend.
Skill #3. Learn How to Set Savings Goals (Business sets targets)
Once you have mastered Skills #1 and #2 it’s time to sit down and think about what you really need to save for. Is it the kid’s education? Is it a holiday for the family or yourself? Is it to set some money aside for retirement? Or, is it to replace the car, furniture or washing machine?
Look at your results in Skills #1 and #2. How much do you have left after taking your spending from your income? Is there anything left over? What happens if there was a spending emergency? What would happen if there was a major car repair cost? What happens if your fridge or washer dies? You need to set aside something each month to cover these events.
Skill #4. Learn How to Live Within Your Means (Business cannot spend more than it can repay)
If the results of Skills #1 and #2 shows that you are spending more than your income whose money are you really spending? It is the bank's or the Credit Card Provider's money. That money has a cost. It's the interest. That is one reason you need help now.
There are only two parts to this puzzle. Money in and money out. The trick is to make more or spend less, or a combination of both. Since it is easier to spend more that to earn more, let's look at some painless ways to spend less.
1. Don't buy things just because they are on sale - only buy when you really need them.
2. Think twice (or even three times) before spending on frivolous items
3. Think twice before you make that mobile phone call. Is it REALLY necessary?
4. Wait for things to go on sale. Usually there is no immediate need to buy many items.
5. Eat at home more often. 1 meal a week eaten at home, not out, could save you $750 per year.
6. Make your work lunch instead of buying it each day. This could save you up to $2,000 per year!
7. Stay busy - start a hobby, improve yourself by reading at the library - anything to keep you from shopping at the mall.
8. Buy clothes from discount shops rather than large up-market retailers.
9. Let your kids take the bus to school rather than driving them.
10. Try to eat natural foods rather than processed foods. You'll save money and stay more healthy.
11. Stop smoking. What a waste of money! It costs you money and it can harm your health.
12. Apply as much spare cash as you can to pay down your credit card debt quickly.
Now, how can you increase your cash coming in?
1. Improve you job/career prospects by taking a course, read books to enhance your work skills at the library.
2. Take online surveys. Check them out on the Internet.
3. Learn how to create your own website. Make your hobby pay for itself.
4. Clean out those items you no longer need. Fill up your car trunk and take them to a weekly or monthly market. You'll be surprised how much people will pay.
Skill #5. Learn How to Develop a "Savings" Mindset (Business only purchases at the best price)
Tell yourself from now on you're not paying full price again for anything. Not clothes, not furniture, not white goods, not car repairs, not insurances, not phones - not even food. Once you set your mind to it, you will find many ways to make this happen. It only needs the will. These tips will help:
1. When buying expensive items play off one store against another. Ask for the lowest price from one store then get the other one to better it. Do this a few times and you'll be surprised how much they can really cut the price!
2. Don't buy clothes at the height of the fashion. Find clothes that mix and match well.
3. Learn a little about how your car works. Don't just take your car to the repairer and say "fix it". Try to narrow down the problem yourself first. Get a couple of quotes.
4. Competition is a wonderful thing. There are always providers of services out these that are ready and willing to beat a competitor's price. This will work for phones (fixed and mobile), insurances, computers, software, car finance and house finance. Make sure the quality is to your standards though.
Skill #6. Learn How to Bargain and not Accept Paying Full Price Again. (Business needs to negotiate prices)
Always ask "What is your best price?" Don't ask "Is that your best price?" Be ready to tell the salesperson the best price you've received from their competition. Then ask the question again, "What is your best price?" Walk away if the price is not to your satisfaction. This is best used on white goods, furniture and vehicle salespeople.
Don't get too stuck on a specific brand or model. Look at all your options.
You can also look for the type of product you require on Ebay. Check their prices and use them to your advantage.
Skill #7. Learn How to Put Your Own Finance Plan in Place - and Stick to it. (Business needs a plan and commits to it)
Now that you have a few more skills to control money in and money out it's time to commit to a budget that will meet your savings and spending needs.
Find a budget plan system that satisfies your requirements. (You can find them on the Internet). Make sure the one you choose it lets you set your goals, checks your ability to meet those goals and then tracks your progress monthly towards those goals. Also, make sure it is good value for money. One system that satisfies all these requirements is "5 Steps to Freedom" Personal Budget. You can learn more by clicking on the links below or clicking on the Author's Profile.
If you learn these skills and put then into practice, you can truly "Laugh at Your Money Worries".
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
Personal finance and business finance are based on the same principles - only the scale is different. Let's see how business control their finances and apply it to your finances with 7 simple skills.
Skill #1. Learn Where Your Money Goes (Business controls its spending)
This skill is a very easy one to master, all it needs a little discipline. Just get a little diary, keep it with at all times and enter each spending transaction into it for a whole month. Do not leave anything out. Every coffee bought while you were out, every bought work lunch, every magazine and every item of clothing. Look at it and see where your funds are really going. Then think what you could have done without. If it was a work-day Starbuck's Coffee (say $5) - that's worth $1,000 per year! What you could you do with that? That's a short resort holiday or you could put it aside for emergencies.
Once you have the months' spending list, then group the items into categories. You could use Food, Clothing, Transport, Rent/House Payments, Medical and Car Payments etc.
Skill #2. Learn How Much You Really Have to Spend (Business knows what it has available to spend)
This is a little harder - but not much. List out your take-home pay (total income less taxes). Then take off your monthly payments such as house/rent, car, life insurance, credit card and medical insurance. The balance should be what is left to spend.
Skill #3. Learn How to Set Savings Goals (Business sets targets)
Once you have mastered Skills #1 and #2 it’s time to sit down and think about what you really need to save for. Is it the kid’s education? Is it a holiday for the family or yourself? Is it to set some money aside for retirement? Or, is it to replace the car, furniture or washing machine?
Look at your results in Skills #1 and #2. How much do you have left after taking your spending from your income? Is there anything left over? What happens if there was a spending emergency? What would happen if there was a major car repair cost? What happens if your fridge or washer dies? You need to set aside something each month to cover these events.
Skill #4. Learn How to Live Within Your Means (Business cannot spend more than it can repay)
If the results of Skills #1 and #2 shows that you are spending more than your income whose money are you really spending? It is the bank's or the Credit Card Provider's money. That money has a cost. It's the interest. That is one reason you need help now.
There are only two parts to this puzzle. Money in and money out. The trick is to make more or spend less, or a combination of both. Since it is easier to spend more that to earn more, let's look at some painless ways to spend less.
1. Don't buy things just because they are on sale - only buy when you really need them.
2. Think twice (or even three times) before spending on frivolous items
3. Think twice before you make that mobile phone call. Is it REALLY necessary?
4. Wait for things to go on sale. Usually there is no immediate need to buy many items.
5. Eat at home more often. 1 meal a week eaten at home, not out, could save you $750 per year.
6. Make your work lunch instead of buying it each day. This could save you up to $2,000 per year!
7. Stay busy - start a hobby, improve yourself by reading at the library - anything to keep you from shopping at the mall.
8. Buy clothes from discount shops rather than large up-market retailers.
9. Let your kids take the bus to school rather than driving them.
10. Try to eat natural foods rather than processed foods. You'll save money and stay more healthy.
11. Stop smoking. What a waste of money! It costs you money and it can harm your health.
12. Apply as much spare cash as you can to pay down your credit card debt quickly.
Now, how can you increase your cash coming in?
1. Improve you job/career prospects by taking a course, read books to enhance your work skills at the library.
2. Take online surveys. Check them out on the Internet.
3. Learn how to create your own website. Make your hobby pay for itself.
4. Clean out those items you no longer need. Fill up your car trunk and take them to a weekly or monthly market. You'll be surprised how much people will pay.
Skill #5. Learn How to Develop a "Savings" Mindset (Business only purchases at the best price)
Tell yourself from now on you're not paying full price again for anything. Not clothes, not furniture, not white goods, not car repairs, not insurances, not phones - not even food. Once you set your mind to it, you will find many ways to make this happen. It only needs the will. These tips will help:
1. When buying expensive items play off one store against another. Ask for the lowest price from one store then get the other one to better it. Do this a few times and you'll be surprised how much they can really cut the price!
2. Don't buy clothes at the height of the fashion. Find clothes that mix and match well.
3. Learn a little about how your car works. Don't just take your car to the repairer and say "fix it". Try to narrow down the problem yourself first. Get a couple of quotes.
4. Competition is a wonderful thing. There are always providers of services out these that are ready and willing to beat a competitor's price. This will work for phones (fixed and mobile), insurances, computers, software, car finance and house finance. Make sure the quality is to your standards though.
Skill #6. Learn How to Bargain and not Accept Paying Full Price Again. (Business needs to negotiate prices)
Always ask "What is your best price?" Don't ask "Is that your best price?" Be ready to tell the salesperson the best price you've received from their competition. Then ask the question again, "What is your best price?" Walk away if the price is not to your satisfaction. This is best used on white goods, furniture and vehicle salespeople.
Don't get too stuck on a specific brand or model. Look at all your options.
You can also look for the type of product you require on Ebay. Check their prices and use them to your advantage.
Skill #7. Learn How to Put Your Own Finance Plan in Place - and Stick to it. (Business needs a plan and commits to it)
Now that you have a few more skills to control money in and money out it's time to commit to a budget that will meet your savings and spending needs.
Find a budget plan system that satisfies your requirements. (You can find them on the Internet). Make sure the one you choose it lets you set your goals, checks your ability to meet those goals and then tracks your progress monthly towards those goals. Also, make sure it is good value for money. One system that satisfies all these requirements is "5 Steps to Freedom" Personal Budget. You can learn more by clicking on the links below or clicking on the Author's Profile.
If you learn these skills and put then into practice, you can truly "Laugh at Your Money Worries".
Bruce Hokin has designed a simple budget tool called "5 Steps to Freedom Personal Budget." It's based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.
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