Many people have come to a time in their lives where debt is lingering. It may seem that there’s no way out of the vicious circle of accumulating debt, but this is not true. Debt trouble is a temporary situation that any person can get out if with the correct technique. The following tips are great for reducing or eliminating creditor bills.

1. Close the Revolving Door

The biggest problem with revolving accounts such as credit cards and store cards is that once you pay them back, the credit returns. A huge mistake that people make with these types of accounts is using the card for the next purchase. This must stop immediately. Once you pay the balance on a credit card, leave it alone for a while.

2. Make Larger Payments

Tiny payment does nothing to bring down the balance of a line of credit. When you make tiny payments, you are only covering the interest and finance charges. In order to make a dent in your balance, you must make a healthy payment every time. As a rule, pay ten percent of the purchase price, plus an additional $20. For example, if the item you purchased on credit is equal to $100, make a $30 payment.

3. Consolidate Your Accounts

A simple debt consolidation can do wonders for your financial situation. If you have more than five open accounts, you may want to consider applying for a debt consolidation loan. The loan will pay off your existing accounts so that you will only have one monthly payment to take care of. Your APR will most likely be less also.

4. Choose a Cheaper Place to Live

If your family is small, you can toy with the idea of moving into a smaller unit. Smaller square footage means smaller rent, and less electricity/water/gas is perfect for cutting costs. Also, if you live in the country, choose a residence that has well water. There is no water bill associated with well water. You can use the savings to pay down your debt.

5. Purchase a Beater

A beater is an automobile that runs great but does not have all the bells and whistles. Go for a reliable car instead of high priced financed vehicle. Pay cash for it. That way the only monthly payment you will have is the insurance premium.

6. Negotiate with Creditors

If you are having difficulty paying your creditors, it cannot hurt you to pick up the phone and talk to them. Sometimes creditors have hardship plans. You might be able to get a lower payment or have some of the finance charges knocked off the bill. Make the telephone your friend and your mouth your tool. Negotiation works. Feel free to obtain a copy of your credit report and dispute all suspicious accounts. The bureau will remove any accounts that the creditor is not able to verify.

7. Develop a Budget

Writing down what you have to spend each month will help you to keep your finances in line and keep your eyes on the prize. Update your budget every two weeks and if you’re coming up short, brainstorm ways to cut costs.

8. Earn Extra Cash

Working odd jobs and side jobs will help you to earn extra money to pay your debt. Use your imagination. Babysitting, lawn mowing, article writing, and house cleaning are some fine ideas – and tax-free.

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).

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.

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.