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?

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.

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.

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.

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.

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.

In this article I will be talking about how to get college financial aid & how to make sure/negotiate the amount of aid given. Every undergraduate and graduate college student in the United Stated is eligible to receive financial assistance.

There are two main types of financial aid awarded; merit based and need based.  Merit based aid is usually awarded solely based on a student’s academic or athletic performance and is awarded by the school’s admission board.  Need based aid, on the other hand, is awarded based on a student’s financial need.  Need based aid is determined by the college’s financial aid office as per the EFC (Expected Family Contribution) of the FAFSA (Free Application for Federal Student Aid.

As someone who is currently enrolled in college I can tell you how frustrating the whole process can sometimes be.  The majority of students in my college applied for need based financial aid.  While most of the students I’ve talked to received some form of aid, there were a handful of students that received a considerable amount more.  It’s not always fair that a student from family A receives more than a student from family B, while B is in greater need.  This happens all of the time.  I’m not saying this to discourage you, but to warn you that it does happen in some cases.  It’s frustrating how this works.  It’s crucial that you take the time to learn how both need based and merit based aid works. Hopefully this article will give you some insight into how to get college financial aid.

Getting admitted to your college is the first part (obviously).  Once you have been admitted you will have greater control over the financial aid you receive.  One of the most important things you need to do is fill out the required financial aid applications, as early as possible.  If you do not fill out every required form by the deadline something could go wrong, and you could be in jeopardy of losing your aid. Also, most of the students I’ve spoken with who had received a large portion of aid filled out the forms early

After you fill out and send it the forms wait to receive your financial aid letter.  If the amount is not what you expected than consider stopping by the financial aid department. They will be able to explain how to get college financial aid & how to fill out the fafsa forms.

Explain your financial situation to them, and if you have any form of evidence (check stubs, tax returns, child support) bring it with you. This won’t work it every case but if you do it with persistence I’m sure you can get somewhere.  Of course every college is different.  If you cannot pay for college once admitted make sure you tell them this.

Just in case you were not aware, you can also apply for private grants and scholarships.  If you are either a minority or have a disability you are in a much better position to find a private grant/loan.

One other thing I want to say.  Just because you are in a financial crisis right now, does not mean you won’t get aid.

Yes, you can get a student loan with bad credit.  Most people naturally assume getting a student loan with bad credit is impossible, and too bad for them!  Once you get a loan you’ll be studying at the college/university of your choice in no time!

First I’d just like to point out one thing.  You should never let disadvantages keep you down, financial or otherwise.  You can accomplish anything you want to in life.  Read that last sentence again.

Money should not play a deciding factor in whether you go to college or not.  The U.S. understands this and has instituted many programs to help “would be” college students.  If this is your goal than reach out, squeeze it by the balls, and hold on!  Anything is possible.  People who achieve goals on a consistent basis are usually the ones who hold on to the vision while the majority give up, let go, and fail.  Anyway, back to how to get a student loan with back credit..

I’m assuming you either already have (or plan to) your G.E.D or High School Diploma.  I’m also assuming you know which college you want to attend.  The first thing you need to do is schedule an appointment with someone in either the financial aid department or the admissions office.  It is wise to call ahead of time to see if an appointment is required.  Some colleges will limit your visit to 10-15 minutes without an appointment, while others don’t take walk-ins at all.

During the meeting you will have a chance to ask questions.  The person you speak with should inform you of the kinds of financial aid that are available to students. Either he will refer you to the financial aid department or he will handle it himself.  You will be instructed to fill out several forms (FAFSA) being one of the most important ones.  During that meeting they will evaluate your specific financial needs and recommend a plan of action.  Make sure you bring either a notebook or a pen/paper with you – as there will be many important things you need to do/remember.

Most students usually receive financial aid in the form of grants.  Grants are money given to you by a specific entity (such as the federal government or non profit funds held by organizations) that you DO NOT have to pay back.  Grants usually only cover a small portion of your tuition, but for low costing community colleges they may cover everything.

During your meeting your counselor will probably suggest applying for one of the federal loan programs (such as a Stafford loan).  Government aid is well…backed by the government.  It’s because of this that you can get a student loan with bad credit.  You can have the worst credit on the planet and you can still get a loan.  Credit does not play a factor, on the contrary financial need does play one.

So, go meet with someone in your college now, and don’t delay!

Now, can you get a student loan with bad credit? Now is the time to try and find the answer out for yourself, go apply for some government backed loans!

If you’re reading this than chances are you’ve been hit on the head with an unexpected financial crisis and need money for emergency.  The first reaction the majority of people have to a financial crisis is panic.  Whether you just lost your job, are about to go through foreclosure, car repair – whatever it is – everything is going to be OK. If you are going to deal with this situation the first thing you need to do is get rid of stress, panic, and worry.

Stress and panic effect the brain in a profound way.  If you can’t think clearly than you can’t make the rational decisions that will help you get out of this mess.

Something you will want to do is go over your expenses and come up with a budget.  Prioritize your expenses and cut the expenses you can live with out.  There are certain things that take a higher priority.  The necessities you must place the highest priority on are food, housing (assuming you’re not facing foreclosure), transportation, utilities, etc.

Things like cable t.v., the internet, cell phones are all optional.  They may seem like a high priority, but if you are either facing bankruptcy or foreclosure its a small price to pay to save yourself.  The goal here is to cut every expense you can.

While you’re going over your expenses it would also be wise to go over your possessions and assets.  Is there anything you can either sell or downgrade to for emergency money?  If you drive a new car, consider selling it and buying a nice little second-hand one.  If you own any additional property than sell it!  If you can save yourself and get through this financial crisis without selling property or downgrading than by all means do it.  BUT IF YOU CANT” – you need to consider it.

Money for Emergency – Contingency Planning

Contingency Planning is one of the most interesting but overlooked part of one’s finances. When most people are asked about the amount they have set aside for emergencies, the answer varies from zero to 2 years of household expenditure, both of which are undesirable extremes.

Contingency planning, though it sounds simple, has a lot of complex issues attached to it.

• Managing Risk: To start with, proper risk management requires us to retain only that risk which we cannot pass on to some insurer. Risk can be in the shape of unforeseen events, some of which can be insured and some not. Death or disability (whether permanent or  temporary) of an earning family member is a contingency that can be insured at a nominal cost. Hospitalization of any of the family members is another that can be easily insured from any of the non life insurance providers in the country.
• Possibility of unemployment for short durations: The advent of endless possibilities of employment has also brought uncertainty along with it. The days of job security are over and it is wise to have at least 6 months of critical expenses in liquid form kept aside for a rainy day. This money for emergency can be kept in mutual fund schemes that provide all the desired liquidity and at the same time accrue the growth on a daily basis.
• Money for emergency also has to be kept aside for EMI’s, Insurance premiums and for any medical emergency when a no-cash hospitalization facility is not available and we need cash for treatment, which is reimbursed later by the health insurance company.
• The amount of contingency funds should go up with the number of dependents and go down with the number of working  hands. The joint family system is also a built-in safety and acts as a buffer for contingencies. The need for contingency planning is higher in the nuclear family system.

Once you have a clear mind sit down and look at the big picture.  What caused this financial disaster in the first place?  What options do I have available to me?  Do I have family or friends that can loan me money for the emergency?  Evaluate the financial situation and go over your options.  Try to keep worry at a minimum.  By looking down at the big picture you will gain better insight that will enable you to make better choices.

The key here is to find the root of the problem and to attack.  You need to create a battle plan. You may want to look into finding a not for profit financial counsellor.  I can’t recommend one here, but do your research and find one that is reputable.

So sit down, stop worrying, go over expenses & assets.  Cut & sell everything you don’t need – its worth it if it gets you through this financial crisis. Alternatively, you can try to find a loan at a decent rate, or go to a place that specializes in giving money for emergency – but these kinds of things are what got you in trouble in the first place possibly? Only you can answer that.