Credit Card Users & Financial planning

Credit cards can be an excellent tool to help you manage your finances. But sometimes we make poor choices, or sometimes the events in life take us beyond our expectations and we are left to foot the bill. Perhaps you have had a few months of extra, unexpected expenses that you are now paying for. What can you do?

Gather together all of your credit card bills and add up the amount that you owe. Factor in the extra expenses you haven’t heard on your credit cards since you receive those bills. Add to that about ten or twenty per cent, which is the “whoops, I forgot about that” factor. Then, with that figure, start shopping around for a loan.

Get the loan and pay off your credit card bills. If you think that you may still use your credit cards, you may want to hide them away so that you reduce the temptation to use them. Now, instead of having several credit card bills at a high interest rate due by the end of the month, you now have one bill that is due once a month at a lower rate. This is called consolidation. At first glance it may not seem obvious why you’d want to do this but there are two reasons:

The first reason is that you will save a lot of money on interest rates. In fact the interest rates might be as much as half of regular credit card interest rates. The second reason is that you will get one bill with a fixed amount due every month rather than several bills with several amounts due throughout the month. This will help you budget.

Credit cards can be an excellent tool to help you manage your finances and buy the things you want or need. But when things go on a ride and your bills get out of hand, which happens to even the best of us, choosing a personal loan as a way to consolidate those bills will help you reduce your interest rates and set up a fixed amount of payment. Reduced interest rates will ultimately increase the amount of money you keep and a fixed amount due every month will help you plan your budget.

Are You Tired of Saying to Yourself “Wait Until Next Year?”

If you could reach just one goal in 2019, which one would it be? How much of a difference in your life would it make if you reached it?

Will 2019 be just another ho-hum year that started with good intentions? Or will it be YOUR Year! Your year to lose that weight you’re tired of carrying…start that business you’ve been talking about…get out of debt for good. Are you tired of being stuck in the same gear?

It’s a well known fact that the biggest reason most people fail to achieve any real success in their life is… they never plan to. They want to. They dream about it and fantasize about it. They talk about success. Maybe they even read success books, listen to success tapes and attend success seminars.

However, the sad fact is that unless a person has some incredible luck (like winning the lottery), their chances of succeeding without a plan are almost nil. But suppose you could spend a few hours over the next few weeks and easily and totally plan the kind of year you’re going to have in 2019.

What kind of year would you plan? Would you: Double or even triple your income. Start your own business. Build the dream home you’ve always talked about. Eliminate all your consumer debt. Marry the person of your dreams. Get in the best shape of your life. Take the vacation of a lifetime.

Sound too good to be true? Well, it is if you don’t have the right plan. Think about it. 2019 will be the best year ever for some people. They will achieve at levels they never thought possible just a few years ago. First, they will have a good plan built on solid principles. But they’ll also have something else. The critical difference. They’ll have a system of follow up and accountability that will help them put their plan into action (and keep taking action).

Keys to Financial Planning

Financial planning, something we all know we need to do, but always put off to the future. Financial planning is hard simply because it requires financial discipline, which is difficult to have in this consumer society. However, financial planning is very important because you want to retire one day, be financially stable in the event of an accident, or unexpected loss of a job. Regardless of when you begin, the basics remain the same.

Here are my top keys to getting ahead financially. Once you have made financial planning part of your routine, it won’t seem so difficult. But getting your financial planning started can be the most difficult thing. These tips will help motivate you to make financial planning one of your main goals.

No matter how much or how little you’re paid, you’ll never get ahead if you spend more than you earn. Often it’s easier to spend less than it is to earn more, and a little cost-cutting effort in a number of areas can result in big savings. One of the biggest factors fighting against financial planning is debt, especially credit card debt. If something starts off as a small debt it turns into a big one simply because you were not paying off the debt. Financial planning means you have a plan and paying off debt should be the first goal of your plan.

Another financial planning tip is to invest. Financial planning means you are saving for the future in many cases, so you will want to take money you earn today and invest in the stock market, in bonds or a mixture. Saving your money with the help of financial planning will help money grow all on its own.

A great financial planning tip is budgeting. You won’t be able to save unless you know what you spend. Make budgeting part of your financial planning and you will realize saving is not so hard. This is tough for people to understand and often what they resist most when they begin financial planning. Choose one area at a time and set a goal for incorporating it all into your lifestyle.

The Importance of Regular Savings

Over time, I have realized that without certain good habits in place, my finances quickly get out of order. Perhaps the most important habit that I have learned is regular savings. Long terms goals are described as goals that have a lasting effect should a person’s present actions be religiously maintained.

Regularly contributing to savings account is important on several levels. Of course, it’s good to have an emergency fund available for any of the countless situations or save for planned major expenses for which you would need extra cash.

Even though I know the importance of savings I will never make it without a plan. Somehow its always easy to spend all the money I have, no matter how much it is. I therefore treat savings like paying a bill, and I guess this is what it means when they say pay your self first. The key elements to making this strategy work are quite simple, first it has to be done regularly. If you miss your telephone or utilities bill this month, you will be expected to pay double next month. You can’t cheat your utilities bill out of a month so don’t do it to yourself.

To figure out how much you can save every month, you have to have a budget and commit to at least that much. If you say well you will save whatever is left, you will probably never end up saving anything or if you are lucky you might end up saving a lot less than what you actually should have. Budget for so many dollars, and put it in savings before you have a chance of spending it.

So how about you? Do you have any tricks you use to help keep yourself disciplined in saving money regularly? If not, why not give this a try?

Choosing Pet Insurance For Your Animal. Things To Consider

There are many things you must take into consideration when you are seeking out health care and health insurance for your pet. I mean they are part of the family, it is wise to take some things into consideration before making a decision. It is essential that you choose the right kind of insurance policy to ensure the health and safety of your pet animal. You can do this pretty easily by checking out the fine print in the insurance information book before you make a decision. You must read this fine print as it normally contains a lot of important information you do not want to miss.

Does the insurance company use a network or do they have a provider list?

Just like normal health insurance you need to find out whether the company uses a provider or a network. If your vet is not a part of the insurance companies list then you may want to find another insurance company unless you don’t mind changing vets and using a veterinarian on their list. Some pet insurance policies will allow you to choose your own vet. You need to find out exactly what kind of insurance the company offers.

There are normally exclusions with pet and animal insurance. Just like with health insurance. Usually pre existing conditions and sicknesses are not covered. If your pet has a health problem before you buy the insurance policy then that particular problem will not be covered on most pet insurance policies. Other treatments such as spaying, vaccinations, flea removal, and heart worm medication are normally not included as well on pet insurance.

Your pet insurance will also have a deductible. Usually between $25 and $50 although the amount could be higher depending on your animals situation. If you have an older pet you will likely pay $50 or more. You will also pay a co-pay every time you go to the vet for a visit.

Is it a one size fits all policy?

Pet insurance companies usually have a limit of how much they will be held responsible for. Usually your pet animal will be covered up to a certain amount and anything beyond that amount will be left for you to pay. You must find this information out before getting your pet insurance.

What are the other benefits..if any?

Most people treat their animals and there pets as part of their own family. Pets need to have medical care available to them, just like a human would. You need to make sure you do your homework and choose a company that loves animals. Find out if there are any other benefits besides medical expenses. Some companies include other perks as well.

Financial Planning Help For Beginners

In this post I’ll be covering a variety of financial principles and subjects that come up when seeking financial planning help. See links for additional information.

Due to the recent recession in the world economy many people are starting to pay closer attention to their personal finances. It’s always a smart thing to plan in advanced, but unfortunately many people have had to learn this the hard way.

The best advice I can give a person who is trying to improve their “financial IQ” is to continue reading blogs & articles like this one. Buy as many books as you can on financial planning for beginners and immerse yourself in it. Get to know different financial strategies and financial terms. Whether you are seeking financial planning help from an experienced firm or whether you’re trying to do it yourself, you absolutely need to know some of the basic concepts.

Here are some basic financial planning principles and terms that you need to know. Think of this as a brief crash-course.

Assessing Your Spending Habits

This is the first and most obvious step a person needs to take. Without doing this you will lack the information necessary to create a financial plan that is adequate to your financial situation. It’s part of the map that is necessary to achieve your goals. It involves listing each and every single expense you have in a given month. Include everything and anything. You’ll have necessities (things you need to survive), luxuries (things that make life more comfortable), and certain expenses that seem to fall in-between.

When giving financial planning help I advise most of people to write an initial list and then to keep track of every single penny they spend for 30 days. This will give you an idea of unexpected spending and those times you “splurge” (like stopping in a convenience store for a drink or pack of gum). It’s a good idea to carry around a pocket sized notebook too so you can keep track of how much you spend each day. The people who write down an expense as soon as it happens tend to have a more accurate picture of their expenses at the end of the month, compared to someone who sits down and tries to write everything down at the end of the day.

By taking the time to assess your spending habits you are preparing yourself for the next step, which is budgeting.

Budgeting your expenses

This is the second and one of the most important steps. Everyone should have a solid budget to rely on. Creating a budget is a very simple process. In a nutshell, it’s monitoring and limiting your expenses so you spend less money than you earn. You do this by taking the list you made when assessing your spending habits and either completely eliminating an expense (like canceling a gym membership you don’t use) or cutting back and limiting an expense (like spending $50 less on food each month).

If you want a more in depth overview of how to create a personal budget than check out the first part of An Idiot’s Guide to Creating a Personal Financial Plan. This guide was written specifically for beginners.

Creating (and sticking to) a budget is the hardest part for most individuals. To give yourself motivation to stick to your budget you need to have personal financial goals. This is the next concept we will be over viewing.

Determining Your Financial Goals

Each person is going to have different goals they want to achieve, and some are more ambitious than others. If you’re not sure what you want to achieve then just ask yourself what kind of life you want to live. What kind of house are you living in? What kind of vacations do you take? Whatever it looks like draw inspiration from it and form them into financial goals.

Also, make sure the goals you set are realistic, you can always change them later. For example don’t aim to be a billionaire if you’re not even a millionaire. Aim to be a millionaire first and then aim to be a billionaire. Tip: Set easy goals you can achieve within a 3 to 6 months. Once you see results they will give you the motivation you need to set bigger financial goals.

I discussed this briefly in my guide for senior financial planning. For a more in depth over view you might want to read that post (whether you are a senior citizen or not, same principles).

6 Month Savings

Most experts recommend having at least 6 months of savings in case you lose your main source of income. To figure out the amount you should save multiply your monthly expenses by 6. For many people it takes awhile to save up to this amount, even if you get a temporary second job – it’s worth having.
This is basic financial security. If you lose your job you will have 6 months to find a new one, or a new source of income. I’ll be writing an article that goes more in depth on the subject of saving soon.

Hopefully this has provided you with enough basic financial planning help to get you started. I’ll be covering more topics soon.

When Can You File For Bankruptcy Chapter 7

Chapter 7 bankruptcy (which is also called liquidation bankruptcy) is when creditors are allowed (by law) to take all or most of your assets to pay for debts. The lenders will often hold a liquidation event if the assets are worth a considerable amount of money. There certain assets they can and cannot take. This will be clearly defined in your bankruptcy and you are best to consult an attorney to find out which assets lenders will have access to. This will also vary between personal bankruptcy and a cooperation bankruptcy. For personal bankruptcy it can include your house, automobile, boats, yachts, and any other kind of assets that have equity.

If you are considering filing chapter 7 you should seek a reputable attorney for guidance, as this is something you should not be taking lightly. If you are seeking personal bankruptcy this will be a way to start over financially. There are obviously many disadvantages, but depending on the amount of debt you owe the advantages may out-weigh the disadvantages. Just remember that this will stay on your credit report for 7 years and will affect your credit for up to a decade. While it will affect your credit for some things (like buying a home) it will also open up the door to other kinds of credit that were not previously available. For example credit card companies will usually extend credit to someone after filing for bankruptcy because they know they can’t file again for another 7 years.

Your best option is to consult an attorney and study up on the bankruptcy laws in your state.

Bankruptcy chapter 7 can help you if you are unemployed, under-employed, or living off of social security. This will ensure that all debts are legally forgiven and will stop the collection calls. However, the final decision in any bankruptcy hearing is up to the courts. One thing you need to keep in mind is that you cannot enter into bankruptcy with premeditated intentions. You cannot get a bunch of loans and credit weeks or months before bankruptcy chapter 7 and than expect to get approved. It doesn’t work this way. The courts will look at every single detail of your financial history. If they suspect that you entered into loan agreements with the intention of filing for chapter 7 they will either deny you or refuse to include said loans.

Many debtors often choose this form of bankruptcy out of frustration being overwhelmed. While this may be beneficial to you in the short (and even long) run you will not have the financial freedom you once had. The courts will keep tabs over your finances for the duration of the bankruptcy. You may feel like you did when you were babysat as a kid. It can be really embarrassing.

You need expert advice. You cannot expect the Internet or this article to provide you with all of the information you need to know regarding bankruptcy. Find an attorney as soon as possible. Preferably one that gives free consultations. It wont hurt and you’ll have a more in depth view of your options.

Do Personal Loans With Bad Credit Exist?

Do personal loans with bad credit exist?

Sometime in your life, if your like most of us, you will have financial difficulties. Money truly can be the root of all kinds of evil. Money kind of has that love hate feel to it, don’t you think? Some people get everything they want and are cursed by their money, while other people struggle to make ends meet.

If you are interested in person loans with bad credit then you are in luck. There are loans available to meet you every need even if you do have horrible

credit. I don’t care how bad your credit is, you can always get personal loans with bad credit or some kind of no credit check loan. You will probably pay a higher interest rate, but you have to pay that price if you need a loan. These kinds of loans should only be used for emergency, you wouldn’t want to take out a loan like this for an every day purchase because of the interest rate.

The best place to find person loans with bad credit is online. There are no credit payday loans out there also. You may want to look into these methods as you do not have to pass a background check. In some cases you will need to have a valid checking or savings account. If you do not have one then you can either open up a free account at your local bank, or you can have someone use their account.

The reason you need a bank account for SOME of them is because that’s how they send you the money. When looking for personal loans with bad credit you will also find some lenders that will either Fed Ex you the cash or will send the money via western union.

If you are getting some kind of bad credit personal loan for a mortgage then you will have to keep in mind the risks associated with these kind of loans. If the personal loan you are seeking is a mortgage then you need to make sure you do not get locked in at a ridiculous rate. You must read the find print, and its good to have someone there with you that can proof read everything for you.

All in all, you can get personal loans with bad credit if you look hard enough online.

An Idiot’s guide to Creating a Personal Financial Plan

For many people the idea of following a personal financial plan (and actually following through with it) is a scary concept. No doubt, there are many college aged individuals who need to learn these crucial concepts, but there is also a large group of adults who have never even sat down to write a budget. Dare I say, the majority of people just don’t understand how important it is to plan your money. If they could only understand how simple it is, maybe they would give it a shot.

This article is an attempt to include idiot-proof tips on budgeting.

Setting a personal financial plan:

List Current Expenses;

The first thing you need to do is list every single thing you spend money on in a given month and how much you spend. Make sure to include all of your personal necessities (rent, car payment, food, gas, utilities, etc). Also include luxuries such as cigarettes, entertainment, and cable. Don’t leave anything off of this list, if you know you go through 5 packs a gum each month (definitely not a necessity) than include it on your list.

Determine How Much To Save

Go through the list you’ve just created and add each of your expenses. Compare the total amount to your currently monthly take-home pay (after taxes). This step is where your own personal goals come into consideration. Whether you want to save up money for a home, a car, or something else you absolutely need to start saving money (we’ll cover this soon). If you have money left over after your expenses you should plan to put it aside into a savings account. It’s wise to set up an automatic account that will transfer a set amount of money from your checking account to your savings account each month. No doubt, many of you will not have much money left over at the end of the month to put into savings. To change this we’ll budget each and every expense and either cut out or limit the non essentials.

As a rule of thumb I advise people to save at least $200 per month (at the very least). Ideally a person should put away $500 a month or more, but I understand that most people cannot do this (especially if you fresh out of high school or college).

Grouping Expenses

This is the difficult part for some people. In this step you are going to go separate your expenses into three different categories; necessities, luxuries, and stuff that falls in-between. Necessities are things you absolutely cannot live without. Things like shelter, food, transportation, and utility bills. Luxuries, on the other hand, are things you don’t need, but want – things you can live without. Spending money on cigarettes, going to the movies, and eating out are all examples of luxuries. You may find that some things don’t fit in either category – but somewhere just in-between. These could be things like your cell phone, cable TV, and the internet.

Cutting & Limiting Your Expenses

In this step we you go through each expense and try to either eliminate it, or limit how much you spend on it. Make sure you have your expense list handy as you will mark down the expenses you change.

Go through each and every one of your necessities and see if there is a way for you to limit what you spend (i.e.: cut some costs). This won’t always be possible for everyone’s personal financial plan, but if it is – go for it. Things that can normally be lowered are car payments (through negotiation), utility bills (by paying more attention energy consumption), and food (by not eating out and by purchasing generic brands when possible).

The next list you need to go through is that middle list. In most cases the things on this list cannot be eliminated completely, but they can be cut down significantly. Apply the same principal here and determine which costs can be lowered. For example, if you’re spending $100 a month on your phone bill consider downgrading to a lower cell phone plan. You may have to make sacrifices, like limiting the amount of text messages you send and receive, or by talking on the phone a little less. Same thing for the cable and internet plan you have. Perhaps you might want to get rid of your home phone all-together, as many people are doing these days.

What is scariest for most people is what you are about to do next. Luxuries (Ahhh)! Just go through the list and make a few sacrifices. Maybe you don’t need to eat out every day, or maybe you really don’t need to renew your gym membership. The goal here is to limit some expenses, while cut other expenses out completely.

This is your personal financial plan (pay attention to the word personal). Ultimately you responsible for making the decision of what’s worth cutting back on and what’s not.

The End Result:

Add up each of your new (and improved) expenses and then subtract that from the original amount you were spending to determine how much money you’ll be saving.

Now it’s up to you to decide what to do with this money. Soon we will be discussing the best ways put away money in savings each month. The money you are saving through your new budget can either be put away or spent on whatever it is you needed it for in the first place. The amount of money that can be saved will vary from person to person based on their personal financial plan.

Senior Financial Planning – Retirement Goals

There has never been a better time to be a senior. Financial planning is crucial for seniors and those who are planning to retire within the next decade. It’s never too late to start planning your financial future and many senior citizens, as well as those on their way to becoming seniors, are doing just this. There are many aspects of creating a financial plan, and in the first part of this series we’ll be discussing the importance of determining your retirement goals.

As someone who has been around awhile you should already have some idea of what it is you enjoy in life. If you’re still trying to figure it out, don’t worry! I’m sure no one ever gets it figured out perfectly. The one thing you simply must determine, before sitting down to plan your finances, is the vision you have for your life, and the life of your family. The role of senior financial planning is to create a road map that will guide you to the substance of that vision.

You’ve worked your entire life, whether your time was spent at home with the kids or at the office. You have come to appreciate work, but maybe you’d like to work a little less and live a little more. The point I’m trying to make is; you need to determine exactly what your goals are and what it is you wish to accomplish.

Before I take on a client this is the first thing I discuss with them. Sometimes it’s nice to help people figure out what they want the rest of their life to be like, but I can only guide a person so far. If you do not determine what your goals are, if you have no vision, chances are you will not succeed with your financial plans. As the Bible says “without a vision the people fall away.”

How to Determine Your Retirement Goals

I advise doing this in an environment where you can relax. Make sure you have some paper and a pen/pencil handy.

To start with, list the 5 major areas of your life. Usually they consist of:

  • Family & Relationships
  • Health & Fitness
  • Money & Income
  • Hobbies & Recreation
  • Spiritual & Mental

Everyone has at least 5 major areas in their lives, if not more. Try to be general when coming up with important areas, don’t list anything specific yet.

After you have your list created spend some time thinking of each area of your life. Reflect on the past and contemplate on the future. Write down how you want to spend the rest of your life in these areas. This is more than just writing a senior financial plan, this is deciding how you want to live and who you want to be.

There is a reason for doing this activity and it will make more sense as you move ahead, even though I’m sure most of you see the importance of this.

If you really think about it, what is the real reason a senior citizen would want to plan their finances?

The answer to that (in my opinion) is enjoyment. Sure you have the common necessities you need to pay for, but you’ve always had to plan on paying those things. The real question you need to ask yourself is; what do you want to do with the rest of your life? And then: How can I plan my finances in a way that will make this happen?

It’s true that the best things in life are free, but all of the other things are what add to it and make it much more worthwhile. For example, your family was free. It didn’t really cost you anything. Everything your parents spent on you (and everything you spent on your kids) was to add enjoyment, pleasure, and comfort into life. Your job is to decide exactly what that is from this point forward.

Here are some questions you can ask yourself to generate some ideas:

  • What did I enjoy as a child that I still enjoy today?
  • Do I enjoy work and should I continue working?
  • Is there anything I enjoy so much that I’d consider starting or buying a small business?
  • How do I want to spend the time I have left with my family (which activities do I want to do with them?) and what kind of money will I need?
  • What hobbies do I have and what financial situation would I have to be in to continue them?

These are just some examples to get your mind thinking. Once you have written down everything you can think of we will begin sorting and assessing the financial implications of each one. During this step it is also advised that you write a general vision statement for your life. After all, we need a “motive” to get “motivated.” If you are going to create a senior financial plan that you’ll stick to, you need specific retirement goals.