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Posts Tagged ‘budget’

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Drowning In Debt? A DIY Lifeline For You!

December 1st, 2009 by Matthew C. Keegan | 4 Comments | Filed in Money Management

Tens of millions of consumers today are facing financial difficulties ranging from late payments on their utility bills to foreclosure on their homes. Job loss, illness, overspending, and other problems can weigh in, putting untold pressures on the American family.

credit cardsNot every financial situation should mean imminent ruin, although taking action sooner rather than later can go far in turning your condition around. Smart budgeting, credit counseling, debt consolidation, and bankruptcy are four do it yourself (DIY) avenues for you to explore; chances are you’ll be taking one or more paths in order to improve your financial condition.

Smart Budgeting

What is smart budgeting? Essentially, it is a budgeting plan that makes sense for you. This means being realistic and developing a plan that works. That doesn’t mean setting pie-in-the-sky goals, near impossible requirements whereby you think you’ll correct many years of financial problems in twelve months or less or pay off your mortgage quicker when you’re still on the brink of foreclosure.

Step by step changes can bring about real results, helping your conquer your problems gradually. This also means negotiating payments with creditors or finding out a way to work with bill collectors. Print out a money tip road map to help you get back on track.

Credit Counseling

Although a “do it yourself” method can work for some people, others may find that professional assistance can go far in helping them conquer the debt monster. Credit counseling organizations can help you develop a repayment plan with your creditors, help you track your bills, an develop a workable budget for you.

A few things to keep in mind: not all credit counselors are on the up and up, some charge very high fees, while others may promise more than what they can deliver. For example, when a creditor says you can pay just pennies on the dollar for your debt, be suspicious. Learn about fees and other costs before agreeing for assistance and check references!

Debt Consolidation

One way to reduce your credit costs is to consolidate your debt, oftentimes by taking out a second mortgage or a home equity line of credit. You’ll be putting your home up as collateral which means that if you stop making payments or make them late you could lose your home.

Certain tax advantages exist when consolidating a loan; check with your financial adviser to learn more.

Personal Bankruptcy

One way to discharge all or some of your debt is to file for personal bankruptcy. Chapter 7 bankruptcy is liquidation of your assets, whereby mostly everything you own is sold off except for exempt assets, which vary from state to state. You’ll be required to take a “means test” to ensure that your income does not exceed a certain amount.

Chapter 13 bankruptcy is less drastic, allowing you to keep a car or your home as long as you keep up payments, while discharging some if not all of your unsecured debt. Changes to the US Bankruptcy Code in 2005 has made personal bankruptcy a less desirable option as some previously forgiven obligations remain in place. Contact an attorney familiar with tax law who can advise you.

Financial Resolution

There is no magic solution to financial problems which means patience and adjusting as you go are important attributes for the person who wants to get back on his feet again. Creating a sensible plan and sticking with it is a good start; seeking professional guidance may be the best choice that you make.


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Is It Time For You To Rethink Your Christmas Giving?

November 11th, 2009 by Matthew C. Keegan | 4 Comments | Filed in Consumer Tips

4 ways to look at Christmas a bit differently.

Christmas is the season where Christians celebrate the birth of Jesus Christ, Savior for mankind. It is also a time when everyone else gets in on the action, whether they have a particular religious motive or simply want to partake in a season of giving and receiving. Yes, Christmastide makes for an odd blend of religious and secular celebrating, but it also unifies people in some unexpected ways including examining their own reasons for giving.

Christmas Giving

Christmas presentYes, the new austerity is here which means that although many people still plan to shop, they aren’t giving like they did just a few years ago. The 2008 financial collapse followed by long term economic have caused a lot of people to examine Christmas giving. Perhaps you’ve already made some changes or maybe you’re still weighing your options. No matter, the following are some seasonal tips to help you celebrate the season with joy instead of dread:

Budget It – This is the year when you’re going to live within your budget, right? I know, it is so tempting to overspend especially when you consider all of the people you will see this season. But a few moments of pleasure seeing a friend or family member open up your gift can be soon overshadowed by months of paying off high interest credit card bills if you spend beyond your means. Stick with your budget and begin to set aside money now for next year’s Christmas shopping.

Kids Only – For large families with parents, numerous siblings, cousins and other relatives, buying gifts for everyone is sheer lunacy. There are two ways you can wisely handle this situation besides not giving gifts at all: purchase presents for children only or have a gift exchange where everyone chooses one or more names out of a hat to determine who buys what for whom. Immediately following Thanksgiving dinner is when some families make their selections, heading out on Black Friday to make their purchases.

Gift Cards – One way to ensure that you stay within budget it to simply give people on your list gift cards. This means if you’re planning to spend $25 for each of your nieces and nephews, you can get a gift card to their favorite store to allow them to make post Christmas season purchases themselves. A few things to keep in mind: avoid those cards with expiration dates as well gift cards which rack up fees if not used within a certain period of time. Importantly, do not buy a gift card or gift certificate from a retailer who is having financial problems as that card may be deemed worthless if they file for bankruptcy.

Helping Others – What do you buy for the person who has everything? Perhaps nothing. Or, at least a donation to a favorite nonprofit organization in their name. If your aunt insists on “no gifts” this Christmas, ask her if she would appreciate a donation to a charity instead? Some people simply do not want gifts, but a contribution to those who need assistance might still be appreciated.

Christmas Joy

We’ve lost sight of what Christmas is all about as the holiday has become a retailing feeding frenzy. We need not return to the days when our Puritan ascendants banned the celebration out of disgust over worldliness, but we may want to rethink what Christmas is all about and a good place to begin is with our Christmas shopping list.

Photo Credit: Kym McLeod

Adv. — 2009 is nearly gone with 2010 waiting in the wings. Might this coming year be the one where you will buy or launch your own business? The work of an entrepreneur isn’t easy, but it can be tremendously rewarding. If you have ever considered starting your own business, then please contact the National Association of Certified Business Brokers for assistance. “Helping Business Owners Succeed” is our motto — please stop by to see what we have to offer to you!


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How To Save Money

August 3rd, 2009 by Matthew C. Keegan | 1 Comment | Filed in Money Management

As the recession lengthens, we’ll be hearing contradictory reports that it has eased, ended even worsened. There are a number of different metrics used to determine when a recession ends with most of these tools not able to do so until months after a recession has ended.

For cash strapped consumers, finding ways to save money during a difficult economy is challenging enough itself. But there are ways you can save money even if your income is down and your finances tight:

You may not be able to save a bundle of money from the start, but if you examine your spending habits, savings can add up over time.

You may not be able to save a bundle of money from the start, but if you examine your spending habits, savings can add up over time.

Don’t Buy Anything – Seriously, you have to purchase food and you may need some new clothes, but when it comes to mostly everything else, do you really need a new car, television or video game right now? Delaying your purchases until a later date will leave more money at your disposal. Try not to purchase anything but the bare essentials for three months to see how your finances shape up. Likely, you’ll have some cash left over and you won’t miss what you didn’t buy.

Cut Your Expenses – There are some simple ways for you to trim your overhead. If you have cable, phone service and an internet connection, consider bundling these services to one plan. If you have low deductibles on your car insurance, consider raising these levels to $500 or $1000 in order to lower your premium. Run your air-conditioning on 78 degrees and run your heat on 68 degrees. Cancel unneeded magazine and newspaper subscriptions, buy generic drugs, clip coupons. You get the idea — pay attention to your outgo and you’ll preserve more of your income.

Avoid Credit Cards – Unless you’ve already been paying off your credit cards every month, then using credit cards can do a number on your finances. Even then you may find yourself spending more on something then if you had cash on hand, so why not try making all of your purchases for the next month with cash and/or your debit card?

Deduct Money Automatically – One of the reasons that so many people have a tough time saving is that once the money is in their hands, they’ll spend it. Some of the ways you can build savings is by automatically transferring money from your checking account to a savings account on a periodic basis. On a weekly basis, transfer a set amount of money from your main bank to an online institution where it’ll take an extra step to get your money out. Money will accumulate steadily and before you know it, you’ll have a tidy sum of cash on hand!

Expand Your Income – Trying to get a raise in this economy is difficult to do, but not impossible. If you have been working hard and producing measurable results, your boss may be willing to share some of that profit with you. Naturally, if your company is reporting record losses and threatening lay offs, then waiting until after things settle down is wise. But, even during tough times companies find ways to retain their best help which means that you may have some leverage the next time you seek a pay raise.

Finally, if you’re the type of person who is new to an austere way of living, then not buying anything can seem dull and unrewarding. So that you wont’ flag in your zeal when it comes to your finances, why not reward yourself on a periodic basis especially as you reach one or more of your clearly defined goals? Dinner out, taking in a concert, a quick getaway to the beach or some other splurge type event can help you stay right on course.

Adv. — Everyone wants to save money, but we’re often hesitant to ask for a lower price from merchants. You may be paying too much for your mortgage even with rates at historically low levels. Why not seek to refinance your loan or pay off your mortgage sooner, if possible? Please visit SayRecession.com for timely tips on how to stay ahead of the game during trying economic times.


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Winter Weather And Your Home Energy Budget

January 29th, 2009 by Matthew C. Keegan | 3 Comments | Filed in Consumer Tips

As the next round of cold weather pushes across the lower 48 states, homeowners are finding it very tempting to turn up the thermostat in order to keep their homes warm.

Energy StarAlthough being comfortable in your home is important, maintaining a budget is essential too. Come February and March, many people will be shocked to see just how high their energy costs rose, thanks to the bitter winter weather.

The federal government through the Department of Energy has issued guidelines to help consumers manage their costs. They’ve also set up a website at www.energysavers.gov which shares details on how you can curb your energy bill.

“The Energy Savers site is a great first stop for personal actions that can make an immediate difference in your energy bill,” said Doug Seiter of DOE’s Building Technologies Program. “It includes several low-cost, no-cost tips like sealing windows or using a programmable thermostat; it guides folks through a self energy audit and suggests how to work with local providers to install better insulation, new windows and Energy Star appliances; and includes links to financial assistance to complete the package.”

Suggested tips for the home:

  1. Turn down the thermostat by just one degree to reduce home heating costs by four percent, which typically saves between $30 and $60 a year, depending on the fuel being used to heat the home.
  2. Wash clothes in cold water to save your household up to $83 per year.
  3. Set the water heater to 120 degrees.
  4. Plug leaks or gaps around windows and doors with materials such as caulking, weather-stripping or foam sealants.
  5. Install proper insulation, especially in the attic and crawl spaces, to reduce household energy costs from $70 to $460 per year.
  6. Replace the four most used bulbs in your home with ENERGY STAR qualified compact fluorescent bulbs to save about $195 over the lifetime of the bulbs.

Consumers can also find energy saving tips through their gas, electric, or oil company. In some cases customers can spread out their energy costs throughout the year to ensure that an equal bill amount is paid no matter the season.

Source: U.S. Department of Energy

Adv. — Are you looking for tips on how to control your costs, perhaps how to set up a budget? SayLowerBills.com is your one stop resource center designed to help you gain control over all of your expenses. Don’t let a sour economy hold you down — take charge by learning how to save money and use your resources wisely.


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