Archive for the ‘Financial Woes’ Category

If you have children and don’t have a college plan in place, you may want to start thinking about starting one soon. Here are 4 ways to prepare for your kid’s college education:

1. Start saving today. One thing is certain – you can never save too much money or plan too far ahead for your child’s education. College expenses are soaring around the country at all-time highs. It’s a good idea to create a college saving plan and implement it a soon as possible. Even saving a little each week is better than no savings at all.

2. Plan ahead. Many parents think planning ahead only means saving money. While this is true, there are other things you should take into consideration well before your child is ready for college. Colleges often require an application fee when your child submits their application for approval. If your child applies to several colleges or universities, these fees alone can add up very fast. Start checking into every aspect of the application and college processes. Educate yourself on these extra fees and expenses so that you can plan for them accordingly.

3. Don’t rely on school counselors alone. Be proactive in your child’s post-graduate education. School counselors can be helpful, but often have a huge workload. Stay in contact with your child’s school counselors, teachers and administrators. Ask how you can help, or what extra measures you need to take as a parent. Take an active part in learning what scholarship and financial aid programs your child should apply for. Your child may be able to apply for several types of financial aid regardless of your income.

4. Involve your kids. While you should take a hands-on approach to your kid’s college education, don’t do all the work for them. Let them fill out forms, pay application fees, and ask questions. Help them create a financial plan for their college years and even save up for some of the costs.

[tags]college fund, save for college, college planning, financial planning[/tags]

There are two ways to save money on your groceries, buy less or pay less. But it doesn’t end there because there are lots of different ways to do these two things.

Buying less always sounds like you have to cut down on what you buy but this isn’t always true. Spending less always sounds like going into the supermarket with a bag full of coupons. True, these are ways to cut down on your grocery shopping bills but with a little bit of thought you could probably cut down your spending many other ways too.

You may be able to buy less because you are using less or reusing the same things more than once like plastic bags and containers. You can also buy less by making things last longer like diluting fruit juices. This will help you save money and calories.

Another way to buy less and save on your grocery shopping is to buy smart and think about all the things that you might be wasting because they’ve gone bad or expired before it gets used. Large yogurt pots and some fruits and vegetables can cause this problem.

Also think about all the disposable items you might be buying that could be replaced by a one off permanent item, for example permanent coffee filters, plastic food containers instead of disposable bags, razors for shaving, even water filters. There must be tons of people throwing money away because they buy bottled water instead of using a water filter that dollar for dollar gives you probably ten times the same amount of fresh filtered water.

The most common ways to pay less for items is to buy the items on sale, buy cheaper brands, or buying in bulk. Often items that are reduced to clear are perfectly suitable to consume it’s just that the store has to sell them quick or face throwing it out.

Also avoid impulsive buying. Many people buy impulsively because the products are there on the shelf in front of them. You know what they say, never go grocery shopping when you are feeling hungry or without a list.

You can also shop around different stores to find the bargains and you might be surprised by how much you can save.

Be weary of supermarket tricks. Things like raising the price of a popular brand for about two weeks then ‘price cutting’ to just below the original price to make it look like it’s on special offer.

Supermarkets can raise and lower their prices to match the supplier’s situation. So if a product supplier is struggling to supply apples one week, then the price will go up, and when the apples start flooding back in again, a special offer price will appear.

But don’t make the common mistakes that many people make. When supermarkets put things on special offer, such as ‘buy one and get one free’ people think this is a great deal. It often is, but this may make you simply consume more so you really won’t be saving much at all.

The best ‘two for the price of one’ offers are on things that you can only consume at a certain rate like bathroom and cleaning products, such as toothpaste and soap powder.

The same thing goes for coupons. Sure coupons are a great way to save money on groceries but if you’re buying things you normally wouldn’t buy or twice as much to get the special sale price then you may actually end up spending more. Often times the coupon offers are higher priced items than the store brands.

By the same token, be careful of store brand or value products that are cheaper imitations of the real thing. Buying lower quality can be a money saver if you choose wisely, but if you end up using twice as much and the product lasts half as long, then you might as well enjoy the real thing.

Every month you sit down to pay the bills and every month you wonder how in the world you’re spending so much. This is a common scenario for most families. The good news is there are a few things you can do to cut your monthly bills down.

Shop Around – Always shop around. Utility companies are in fierce competition with each other, use it to your advantage and shop around for the best savings. Don’t think you have to stick with a supplier you’re not happy with.

Leave the Car at Home – Don’t pay the outrageous fees for gas. If possible try to walk, you can also consider taking the bus or carpooling. When filling up the car, shop around for competitive rates.

Lower Your Thermostat – If it’s cold in the house don’t just automatically switch the heating to high. Put on an extra sweater and pair of socks instead.

Avoid Using Your Dryer – Dryers waste a lot of electricity which means higher bills for you. Try to hang up your clothes instead. This not only saves you money on electricity but will help some of your clothes last longer as well.

Make Sure It’s Full – Don’t use your washing machine or dishwasher when it’s half empty. Play around with the temperature settings to see if a lower temperature will do the job just as well as the pricier higher one.

Turn Off the Lights – Your father was right. Turn off the lights you’re not using to save electricity. If you’re just relaxing try lighting candles instead, this will save money and create a nice atmosphere (make sure you follow all safety guidelines).

Lower Your Water Bill – Try to take showers instead of baths. Turn off the water while you’re brushing your teeth. Collect rain water and recycle it to water the plants. Make sure your faucets aren’t dripping. Use a bowl full of water when doing the dishes instead of leaving the tap running.

Change the Setting – Set your thermostats a couple of degrees lower in the winter and a couple of degrees higher in the summer for a big savings on your utility bills.

Filter Your Water – Investing in a good water filtering system can save you money on buying bottled water. It will also help you save money by making your appliances last longer due to lower lime scale buildup in hard water areas. You can even use less detergent when washing clothes or using the dishwasher.

Don’t Buy Disposable – Try to cut back on your shopping bills by not buying disposable items such as paper towels, use a clean dish cloth instead. Try to reuse your aluminum foil or sandwich bag containers or better yet buy plastic containers you can wash and reuse.

By following these tips, you can make a significant dent on your monthly bills. As an added bonus, you’ll also be contributing towards a healthier environment for your children and grandchildren to enjoy.

There are lots of reasons why families have to live on one income, a new baby, single parent, husband loses his job or simply because one of you wants to spend more time with your children. Whatever your situation is, living on one income can mean it’s time to cut back, or it can mean that now is the opportunity to slice your spending in half by making a few clever budget changes.

To start at the very basics it is absolutely essential to look at your cash flow, what money is coming in and what money is going out. The first part should be easy, simply list every penny of income you receive on a regular basis every month. This might be before you give up a second income to see if you can afford it, or this may be your single income that you are living on now.

Then comes the slightly harder part of listing everything that you are committed to spending on every month, this includes your mortgage, car payments, loans, utility bills like electricity, cable and water. Make a full list of everything that you absolutely must pay for every month.

You should add a realistic amount for food and other essentials such as diapers for your little ones or any other costs that you have to pay on a regular basis. These are your essential monthly costs.

Then simply take away your monthly costs from your monthly income. The difference between these two amounts is you disposable cash or how much you have to spend on everything else. Of course this amount might actually be negative and this is actually more often the situation for many families where you suddenly realize you can’t afford your living.

But don’t worry because there are lots of things you can do to reduce the costs. The first place to start is on the list of items that you made for you essential monthly costs.

We all usually have a long list of essential monthly costs so if you can reduce each one by ten dollars here and twenty dollars there and it will eventually all add up to make a significant difference.

First, go through your list of monthly bills and see how you can reduce each one. Quite often you can call credit card companies and get a reduced rate. You may be able to switch cell phone providers or find a lower rate.

Many people don’t take advantage of offers that come through the door for cheaper monthly cable or a lower monthly telephone service. Also, one of the easiest fixed costs that you can lower is insurance. Call all the car or home insurance companies and get them to beat each others offers. As long as you are realistically lowering your monthly costs then you are going in the right direction.

Then take a look at your existing credit. If you have good credit then you are in a good position to shop around for a better rate car loan or a better mortgage. If you’re credit isn’t great then log onto the three credit companies, Equifax, Experian, and TransUnion. These will give you practical information on how to fix your credit so that you can get those monthly costs down by either consolidating your debts or replacing them with loans over a longer lending period or with a better interest. Again, be careful you don’t end up paying more.

Then have a look at all the things that can buy cheaper, like cheaper gas, cheaper brands of food. There are lots of ways to spend less on the things you buy on a regular basis by either finding sales, coupons or special offers or buying it somewhere else where it’s cheaper.

Then comes the part where you have to look at all the things you can cut out of your budget all together. Do you have any monthly subscriptions or memberships that you don’t really use anymore? Do you spend money on services or products that you don’t really use any more? Do you really need those expensive brands?

Once you have sorted all your costs you should see if your monthly costs both essential and non-essential are lower than your monthly income. If it is then great and pat yourself on the back for a job well done.

If it isn’t, and you have really tried to squeeze every last dollar out of the costs then you may have to reconsider your situation. You could either start cutting things out of the budget like using only one car, one cell phone, or go back to the income and find ways to increase what’s coming in by finding a better paid job or working from home in the evenings.

Either way, try and be creative in thinking about the ways you could save money so that living on one income is a comfortable step and not a financial nightmare. With a little thought and planning ahead you may be able to get by easier than you think.

In order to obtain good credit standing, you have to have a credit card. However, there is a slight hitch; you can’t obtain a solid credit standing if you can’t receive credit in the first place. Therefore, here are some ways to establish your credit.

Apply for a secured credit card. How does this work? The amount of credit is based on the amount of money you deposit into a checking or savings account. The credit card company issues you a card (more akin to a debit card), and the amount used is deducted from your checking or savings account. After some time has passed, and you have paid your bill on time, you can ask the credit card company to issue a regular credit card. One well known company that offers this service is Capitol One.

Another way to establish your credit is to apply for a department store card. Once again, as long as you pay your bills on time, you credit rating will begin to rise. However, do not attempt to apply for too many cards, as the credit reporting agencies may determine you cannot handle the line of credit based upon your salary. When you receive all of those credit card offers in the mail, immediately check the APR rate as well as their terms and conditions. Not all credit card companies offer low rates. Once you establish credit, and are considered an account in good standing, you can contact the credit card company and ask for a lower rate. Depending upon your payments, line of credit, and usage; they will ascertain whether or not you qualify for a lower rate.

Also keep in mind that most credit card companies, who offer credit to anyone without any credit standing, may do so at a higher rate than for others who have established credit. Ensure you open a checking or savings account. You may need to give this information to qualify for credit.

These are some of the ways to establish your credit. Others may include applying for a loan; but since you do not have any credit history, you may be turned down unless you have a co-signer. The best approach is to begin with a department store or secured credit as mentioned. One other important note: Upon securing a credit card, you will be given a line of credit. It could be $500 or more. Do not run up your bills immediately. Do not use your card online, unless the credit card company has a Zero Liability Clause; and do not apply for other cards unless you are sure you can pay the monthly bills. Finally, ensure you pay a bit more than the minimum due. This can help your credit rating increase down the line.

[tags]credit, good credit[/tags]