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How to Make Your Life Recession Proof

July 28, 2011 By Leave a Comment
Recessions are tough and can take a huge financial toll on people if they aren’t prepared for the worst. While no one knows exactly when or if a recession will hit, there are a few things you can do to recession proof your life and prepare for the worst.Recession proofing your life will require you to make some changes to live a lifestyle that is a little different than what you might be used to or comfortable with. Here’s a look at some changes and things you can do now to start recession proofing your life.

Save for a Rainy Day

Many people wrongly assume that just because the economy isn’t in a recession, they don’t need to save money in their rainy day fund. However, if you are looking to make your life recession proof, you need to save for a rainy day, regardless of whether there is a recession going on or not.

The best way to create a rainy day fund is to set up a savings account and place a little bit into it each month. This system will help you get into the habit of saving and will prepare you for the tough times that are associated with recessions.

Keep Your Job Skills Up to Date

One of the biggest characteristics and consequences of a recession is the potential for many people to lose their jobs. There are very few jobs that are recession proof, and anyone can face a pink slip during a recession.

With the increase in available distance learning classes and online colleges, you have many opportunities to keep your job skills and education up to date. Just a few classes a year can keep you primed and ready to hit the job market should you lose your job due to a recession.

Don’t Give Into the Temptation to Overspend

It can be extremely tempting to go out and overspend on items you don’t need when the economy is great and there’s money in the bank. If you are trying to recession proof your life, however, you should not give in to the temptation to overspend, even when times are good. Instead, you should keep the money in savings or look for ways to invest for the future. This will help you prepare for a recession and those times when money is tough to come by.

Recessions are unpredictable. They can come quickly and be back to back, or it can be years before another one hits. Despite the unpredictability of recessions, you can prepare yourself by making these changes. It might be hard at first, but you’ll be grateful you did it when a recession hits. Do you have other tips for making your life recession proof?

Filed Under: Advice, Tips & Tricks, Budgeting, Personal Finance

5 Reasons Why Credit Cards Aren’t the New Black

July 22, 2011 By Leave a Comment

If credit card companies were to be believed, you might come to the conclusion that having dozens of them is financially savvy. That’s just not the case. Here’s why you should limit the number of credit cards with your name on them:

1. Credit Score

While it’s smart to have a credit card or two to build credit, having many of them is typically considered a bad mark on your credit report. Think of this as those looking at your credit report do: too much potential to overspend. Whether or not you intend to overspend — you may have awesome financial habits — you may eventually do so in case of an emergency. Perhaps you’ll get into a car wreck and need a lot of money to pay untold medical bills. When you’ve got the ability to utilize a lot of credit, people assume that you will. This works against you.

2. High Interest Rates

If you don’t pay off your credit card balance in full each month, you’ll be subject to extraordinarily high interest rates. Credit card suppliers can charge pretty outlandish rates, and as a result, they do! Even if they offer low teaser rates, most state in their fine print that they can, and will, raise rates when certain easily met conditions occur.

3. Late Fees

You might mail your payment just in the nick of time but if you forgot about that holiday in there the payment may get delayed by a day or two. The result? You’ll get stuck with a late fee! Late fees are a real wake up call to the egregious overcharging that’s rampant in the world of credit suppliers. A single late fee often costs as much as a dinner for two at a decent restaurant. Keep that money for your romantic life!

4. Overspending

Unanticipated medical bills are one thing, but a lot of people haven’t learned to live within the means of their paychecks. These citizens are likely to spend way more than they can afford on a regular basis if they’re able. Credit cards are a great enabler in this regard. But you can manage spending with the Reach card, since the amount on the card is predetermined by your available cash.

5. Debt

It’s one thing to mildly overspend during the holidays, buying gifts for friends, family, and loved ones. It’s another thing entirely to repeatedly, continuously overspend one’s paycheck week in, week out. This leads to debt, often measured in very large numbers. Huge debts can lead to bankruptcy or painful repayment periods, in which one lives substantially below their means for a few years. That’s not fun!

All told, credit cards can add convenience to your financial life. Unfortunately, they can also create a real burden, even in the lives of very well intentioned, financially stable people who encounter real-world problems. Have you ever had a medical emergency or other large, unexpected bill?

Filed Under: Advice, Tips & Tricks, Budgeting, Personal Finance

How Online Personal Loans Could Save Your (Financial) Life

July 15, 2011 By Leave a Comment

Money talks; things less than money, walk: this derivation on an old horseshoer’s take on the world of money is as true today as it was when a lot more horses needed a lot more horseshoes. In the intervening years, a lot has changed. One thing that hasn’t changed is the attitude of those who are owed money.

They typically want to be paid as soon as possible, whether that’s for something you’re buying in the moment, or for something you’ve already received and have yet to pay for. ATM machines offer those with cash in their bank accounts the option to get a few greenbacks at a moment’s notice. That doesn’t do much for those who need immediate funds but don’t necessarily have them on hand at the moment. For people in that situation, short term loans are the answer.

Loans Translate to a Speedy Influx of Cash

There are several advantages to getting a loan, and most of them revolve around the idea of speed. By the time you’re looking for a loan, you need money for something important. It could be that you need cash to help afford the mortgage for the next month or two while you aim to pick up another job.

Or maybe you need additional funds to buy a car so that you can get back and forth to work when your regular ride bites the dust. Either way, when you find yourself in need of cash, a loan is the fastest way to get it in your hand, short of winning the lottery. And the odds are severely against that happening!

Lifesaving Effects of Cash in Hand

Having money in your hand can be a real lifesaver, and that’s all the more true when there is a medical emergency afoot. When you’ve been in an accident and are uninsured, some treatment centers won’t help you out unless there is a large wad of cash in your hand. That’s all the more so if the place has already seen a lot of charity write-offs.

At some point, they stop offering free care because they need to pay the bills, too. So if you’ve got an injury, a fast loan can mean the difference between treatment and festering wounds that lead to death. A simple loan really can be a lifesaver!

It’s not all Life or Death

Of course, few situations involve an actual life or death outcome. However, there are a lot of scenarios that affect one’s financial life and its apparent health. One situation is when there are some shady elements involved, such as loan sharks. These people have reputations which precede them for miles.

They’ll loan out money, but when they determine that it’s time for repayment, the person they’ve lent to had better be able to cough up cash. Hollywood movies have painted graphic pictures of the ‘or else’ side of this arrangement, and it isn’t pretty. It also isn’t far from the truth. Being able to land an online personal loan could keep you out of a lot of misfortune.

Sometimes a Loan is About Maintaining Comfort and Reducing Stress

The news has been filled with the stories of rampant foreclosures. People have walked away from their homes, and the mortgage obligations they represented, in record numbers. However, that’s not an ideal situation. If you’re facing foreclosure for lack of payments after losing your income, a loan might just be the ticket to keeping a roof over your family’s heads.

If the good news of your efforts to land a fresh job have finally come around, it might be a wise choice to seek out temporary financing to keep the bank at bay. Although another loan will add to your personal financial burden, that’s a lot better of an outcome than suffering through the foreclosure process, which leaves you with nothing while irrevocably scarring your credit score.

Keeping a Handle on Health

Besides cash needed for an actual emergency medical visit, cash in hand from a loan can help reduce stress for far lesser things. Did you know that stress is one of the leading causes of serious health maladies? It is associated with the onset of numerous diseases and results in well over half of the visits that doctors receive nationally per year.

It also aggravates existing conditions such as insomnia and the blood sugar levels involved with diabetes. Stress leads to divorces, family issues, suicide, and misplaced anger which can result in fights with strangers. All of these troubling items can be reduced in severity by an easily found solution: cash. Online personal loans put the cash into your hands so that you can reduce the incidence of these stressors.

Not every financial matter is life or death, but they need not be to have an effect upon your well being and that of those around you. Even just being able to afford a few extra goodies at the grocery store might help cheer up your world, which can make all the difference in reducing the above mentioned stressors.

CONCLUSION

Not everybody has had the success of J.K. Rowling, the author of the wildly popular Harry Potter series. But as she could, and would, tell you, life isn’t all a bowl of cherries. Before she became an internationally recognized best-selling author, Rowling was receiving benefits from the government to help pay the way in her life.
While you work on constructing your masterpiece, you too could find that landing some spare cash could save your personal financial life. Who knows what you could create by giving yourself some breathing room?

 

Filed Under: Personal Finance

How to Manage Personal Finance

May 21, 2011 By Leave a Comment

Managing personal finance is very important to live a debt-free life. Therefore, the most important aspect of personal finance is to pay off all debts. There are several methods to pay off debt, but the best one is to keep a check on the expenditures. Here are few ways to manage personal finance.

NEW YORK - MAY 20: In this photo illustration...

Image by Getty Images via @daylife

The most important thing to keep a check on personal finance is the budget and this is recommended by many people in the finance department. Budgeting helps a person to determine what they can really afford and how far they can control their expenses according to their earnings. The typical element in the budget is the income and expenditure, and this helps a person to stay within the limit.

Credit cards are something that should not be used and usage should be reduced. Credit cards are the real trouble maker in finance and reducing the usage of credit cards help to reduce the expenses. It is always a good practice to use cash to buy all the necessary items and this also helps to maintain the debt very low.

Another good method to manage personal finance is to pay off all the debt within time. A person should try to save some amount every month and it is better to deposit this money in a savings account. This way, one will have some amount saved that can be used in case of emergencies. Another idea is implementing strategical buy, that is a person should analyze everything before buying and should buy a thing only if they really need it.

 

 

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What to Know About Bankruptcy

May 20, 2011 By Leave a Comment

There are times that you just hit the end of the road with your debt. You have tried everything you can think of and there is nothing left to do. It is the time you know it is right for you to file for bankruptcy. It is never an easy choice but it is one that many Americans have to do. If you decided that you must declare bankruptcy then here are a few things that you should know.

First, you should know that in a bankruptcy case you will likely get to keep a few things. There is rarely a time when a bankruptcy case will rob you blind and leave you with nothing. They will take anything they decided but in most cases they will let you keep your house and or your car.

Another thing you might want to consider is that it will affect what you can buy down the road. You are going to be greatly affected by your past mistakes if they resulted in you having to file for bankruptcy. You will likely not be able to get approval for a car, house, or even a credit card without the help of someone else.

These might seem like tough breaks but the relief of debt is worth it. If you have to file make sure you talk with an attorney that will help you understand your legal rights and responsibilities. It is not the end of the world to file. It may help you in the long run.

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How to Choose Financial Planner

May 12, 2011 By Leave a Comment

Most people around the globe manage their finance effectively with little knowledge on finance. Sometimes, some may require a professional assistance because of inadequate time or any difficult situation. Hiring a financial advisor is an important process and here are few tips for hiring the right financial advisor.

Before getting professional assistance, one should understand their need and expectations from their financial advisor. There are different types of financial planner and each has different expertise in their respective field. Knowing the basic needs, one can narrow down their requirements and accordingly they can choose the right financial planner.

Another easy method to choose financial advisor is to talk with friends, family members or any others who have prior experience in financial matters. Other than this, one can even search in phonebook and Internet. The financial advisors have to pass certain certifications and should maintain designations to be recognized. Therefore, one could easily select some good financial planner according to their designation and certification.

Some of the well-known designations are Certified Public Assistant, Personal Financial Specialist, Chartered Financial Consultant, Certified Financial Planner, and Chartered Retirement Planning Counselor. There are more than 50 financial designation is available and some financial advisor may have more than one designation.

After narrowing down the planners, it is very important to meet them in person. The meeting actually helps a person to explain the advisor on what they are looking for and can even find out whether the advisor is suitable for the job. Next step is to find out their fees and method of payment.

 

 

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Justice for Your Finances

May 5, 2011 By Leave a Comment

If you’re facing financial trouble right now, know that you aren’t alone. With the present economy the way it is, hundreds of families are struggling to make ends meet every day. There aren’t nearly as many high paying jobs available any more, and the competition for the existing positions is very high. However, there is another way to help ease the load of your monthly bills—and prevent your house from being foreclosed on.

While many people associate bankruptcy with a negative stigma, it can actually help turn your finances around. After successfully filing, you will no longer have to worry about some of your more troubling bills, like medical expenses that are impossible to pay off. However, it’s important to remember that you should always consult with a lawyer before you try to file for any type of bankruptcy so that you don’t end up doing your situation more harm than good. If you’re ready to look for an experienced attorney who can help you get your finances back on track, then you should schedule a consultation with Girardi Keese.

If you’re in a bind with your finances and you end up needing to file for bankruptcy, it’s important to remember that this isn’t the end of the world! You can rebuild your credit, and you will eventually qualify for loans again. The most important thing you can do to prevent yourself from repeating your budget woes is to reevaluate where you’re spending your money. Make sure you aren’t purchasing unnecessary items, like a lot of fast food.

 

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Avoid Credit Card Debt

May 2, 2011 By Leave a Comment
Credit cards

Image via Wikipedia

Americans have over a billion dollars in credit card debt. In fact, it is estimated that the average American has at least $2,500 in credit card debt. With statistics like this it might seem as if it’s impossible to avoid credit card debt. Luckily, there are ways that you can avoid becoming another statistic.

Here’s a look at some things you can do to avoid falling into credit card debt.

Use Prepaid Credit Cards

Prepaid credit cards can be a great tool in preventing credit card debt. These cards, like the Visa prepaid debit card, work just like regular credit cards but they have one added benefit to them. They only allow you to spend the amount that you put on them which prevents you from overspending and falling into credit card debt.

Pay in Cash

Many Americans use their credit cards for almost every type of purchase no matter how small it is. This can lead to excessive spending. Try to make these purchases in cash, which will prevent you from overspending on smaller purchases because you are forcing yourself to stay within your cash budget.

Pay Credit Cards Balances Off

If you absolutely have to use a credit card make sure that you pay the balance off as soon as you get the bill. People fall quickly into credit card debt because they are unable to pay off the bill and the interest that came with that credit card prevents them from ever getting ahead.

Credit card debt is on the rise. However, if you follow these tips you will avoid falling into credit card debt.

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Traveling Changes for Corporate America

April 17, 2011 By Leave a Comment

Image by Photofarm.nl, Captured by Dirk-Jan Kraan via Flickr

Traveling is a big part of the corporate world. It’s how dealing across state lines and across countries. It’s the ability to close deals in person and it’s that personal touch that gives a business its edge. These days though there are plenty of companies who understand that the economic hardships that are being felt are having a direct impact on the way companies actually do business. This is no more apparent than with traveling.

One of the things that companies have done is to get rid of private jets. While a private jet says something about the stature of a company, it does very little for the bottom line. These days they are putting their traveling employees on regular flights where they are able to score corporate discounts. Companies understand that they must maintain good financial health at all times. While a payday loan may exist for local man and women, corporations are not afforded that luxury.

Companies are also looking forward to taking advantage of video conferencing as a way to have direct and personal communication with clients that are further away. This saves an immense amount of money and has the effect of making a personal visit more meaningful. While companies understand that some clients need representatives to be there in person, they are taking advantage of other companies who are also conforming to the changes of telecommunications and are willing to use new technology.

These days companies are saying goodbye to travel and hello to smarter business. It’s the best thing they can for to the long term health of the company.

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When To Do a Car Refinance

April 12, 2011 By Leave a Comment

More and more families are finding themselves in a financial situation which requires them to spend their money according to a budget. While the worldwide economic situation is not as gloomy as it was in 2010, people learned some valuable lessons concerning how their money is best spent. Personal credit score numbers took a tumble. Drastic measures were taken by some families to keep their heads above water, so to speak, including home foreclosure and bankruptcy. The financial tides finally seem to be changing and credit scores are beginning to show improvement. As these all-important scores improve, families can once again consider refinancing their high-interest loans.

Car refinance is a hot topic this season. Now that many people’s credit scores have begun to heal and the financial pressure is not so heavy, they are reconsidering the high interest rates they have been paying. Since car loans are traditionally at a high interest rate if one’s credit is poor, this is a good place to start once one’s credit score has improved. The first steps to take are simple:

  • Determine if the going rates are worth the trouble of refinancing. Call around to several banks and see if the rates they are charging are better than what you are currently paying.
  • Check with the three major credit reporting agencies to be sure that your credit truly has improved.
  • Determine which bank has the best deal and make an appointment with a loan officer.

When discussing a car refinance with the loan officer; be sure that the actual interest rate has been lowered and not just the payment amount.

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