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Tips for Keeping Personal Finances in Check During the Holidays
Guest post:
Developing a budget is the foundation for keeping your personal finances in check during the Christmas and New Year period. A budget provides a realistic way to see where your finances stand. Be prepared, though. Writing things down has a tendency to shed light on issues. You may be spending more money on items than you originally thought. So, take some time to figure out exactly what your income is, how much you need for your daily living expenses and what amount is available for recreational expenses. Recreational expenses mean the fun stuff like going to the movies, buying that extra gift or paying more for that family dining experience. Stay within your budget to keep your finances in check.
Pay cash as much as possible. Hopefully, by now you have weaned yourself from credit cards. Credit cards put you into a borrowing situation which can only harm you in the long run. As much as companies advertise special credit promotions, such as not paying until February, you are still entering into a legal obligation. February may seem like a long time away, but it will come sooner than you thought. And, you might not have the money then. So, paying cash for whatever you buy is your best bet. Paying cash also reduces your risks of credit card fraud.
If you absolutely must buy a high-end item that you cannot afford to pay cash for, check around for the best credit cards available. Some independent credit card companies do offer low-interest rate incentives to attract new customers. Just be certain you read the fine print. You do not want to enter into any contract that has a large payment after a certain amount of time or one that has a small-print clause stating the interest rate will go up for a number of reasons. Many reputable retail establishments have their own credit card to entice purchases. Some of these can be low or interest-free. Be safe and deal only with companies you feel comfortable with.
Hit the day after sales. Stores need to get rid of merchandise the day after Christmas. This can be a huge money-saver for customers. Some items can be marked down more than 50 percent. Check your local newspaper or go online to see what sales are available. It may be well worth your time, effort and pocketbook to buy that big-dollar item after Christmas instead of before. Be patient and you may reap the rewards. Start doing some comparison shopping. This time of the year, especially, retail establishments are vying for your business. All kinds of good deals abound. As much as that hold true, you can keep your personal finances in check during the Christmas and new year period by taking some time to comparison shop. You know what item you want to buy. Check to see which store offers the best price. Also check to see what the store’s return policy is in case the item does not work out for you or your gift recipient. And remember, driving across town to save a couple bucks on an item may not be worth it. You need to consider your commuting costs into the final cost of the item. Just like Santa likes making a list, you can benefit from making a list. Write down all the gifts you want to buy. Take that list with you on all shopping trips and stick with it. Once you buy a gift, cross it off your list. Crossing items off gives a feeling of accomplishment. Help your personal finances by using any number of these suggestions during the Christmas and New Year period.
Contributed by Daniel from Merlin Assurance, a Quebec insurance broker.
4 Innovative Tips to Avoid Financial Blues
Guest post by Idania Silvia:
You can avoid fiscal blues if you exercise financial discipline that helps to control your bad spending habit. People usually fail to track their expenses and end up incurring overwhelming debt. These debt stricken consumers are clueless about their liabilities and their monthly expenses. Instead of saving for future they splurge their hard earned money to maintain a lavish lifestyle. And their income does not suffice to maintain a high standard of living and end up borrowing money to manage their expenses.
Here are a few tips that will help you avoid financial problems and help to secure your future:
1. Save a fraction of your income:
You should deposit a portion of your income in the savings account by instructing the bank to automatically deduct from your paycheck account. You can also save money in 401K plan as it will help to meet your retirement goal. The emergency fund can be beneficial to manage your urgent expenses that pop up at the middle of the month. Make sure you spend within your means as it will help regain control over catastrophic financial situation.2. Prepare a budget worksheet:
You can check the National Foundation for Credit Counseling website in order to get a budget worksheet. Try to calculate your total monthly income that includes wages, Social Security, interest, rental income or retirement income. Now you can prepare a stringent budget plan that will help you save a considerable amount of money. You can use this extra fund towards paying off your debt. Try to curtail your flamboyant lifestyle and make sure that you spend on things that are essentially required.3. Evaluate your monthly budget:
You need to review your monthly budget in order to ensure that your expenses do not exceed your income. You need to modify the budget plan according to your financial situation if your expenses are more than your income.4. Increase the flow of your income:
If you are keen to avoid financial blues then it is advisable to increase the flow of your income. If you are free on weekends then take up a part time job as it will help to boost your income. You can also work as a freelancer that will help to increase the flow of your income. You can sell your old watch, camera at ebay and use this extra fund towards paying off your debt.These are the four innovative tips that can guide you to control your fiscal situation. But if you are still unable to manage your financial blues then you can approach a credit counseling agency to assist you pay off the debt in order to get financial freedom.
I am Idania Silvia, a contributory guest columnist for various websites and communities including www.ovlg.com. I have completed my Masters in Finance and is currently working with an Investment company located in California. I have written some great articles on topics like mortgages, refinance, credit-card-debt-consolidation, credit-card-debt-relief, credit-card-debt-settlement, bankruptcy, working from home, investment opportunities, etc.
Credit Card Debt – When Should You Seek Advice?
When it comes to spending your money, there are several ways you could do it.
Nowadays, one of the most popular ways to spend is by using a credit card – it’s quick, it’s convenient and it lets you spend money you may not otherwise have until payday.
While credit cards offer a quick and easy way to make purchases, they don’t come without their risks. Spending too much money on your credit card can be dangerous – particularly if your situation was to change and you weren’t able to afford your repayments… in this situation, you could soon find yourself struggling with debt.
At what stage should you look for advice, though? Well, that’s a good question, and this guide takes a quick look at it.
Understanding credit card debt
Before taking on credit card debt, it’s important you bear a few key points in mind. First of all, the money you spend on your credit card has to be repaid. If you don’t repay it by the ‘deadline’ set by your credit card provider, your debt will start accruing interest at the agreed rate.A problem can arise when you are unable to afford your credit card debt repayments each month. Whatever the issue, if you fall behind on your monthly payments, you could soon find yourself struggling with unmanageable debt as the interest grows.
At what stage should I seek advice?
Generally speaking, as soon as you notice something isn’t right (e.g. you’re spending more than you earn, or you’re finding it hard to meet all your expenses), you should seek advice.Of course, if you can spot a potential issue before it really starts causing you any troubles, so much the better – the sooner you seek advice about your debts, the sooner you can get some pointers on getting / keeping them under control.
Avoiding problems in the first place
There are ways you could improve your chances of avoiding any problems in the first place. We’re going to discuss two of these briefly now.Firstly, you could take out a debt consolidation loan to repay all your unsecured debts (including credit card debts) in one go – replacing them with just one, easier-to-manage debt.
This could help you simplify your finances by leaving you with just one payment to make each month instead of several. It could also allow you to pay less each month – if you arrange to repay your debt consolidation loan over a longer timeframe than your original debts.
Please be aware, though, that debt consolidation does have its downsides. For example, arranging to repay your loan over a longer timeframe will mean you’re in debt for longer – which means you’ll be paying interest for longer too, so it can end up costing you more in the long run.
Another way you could avoid financial problems is by planning your monthly budget out in advance – so you’ll be able to see how far your money will go each month, and whether or not you’re likely to come up against any problems (like running out of money before the end of the month).
Of course, problems can’t always be avoided. If you’re made redundant, for example, or you have to take a pay cut, you’re simply not going to have as much money at your disposal each month. And although you can’t predict whether this will happen, you can take measures to protect yourself in case it does. For example, you could reduce the amount you spend on your credit card, so there’s less chance of running into problems when it comes to repaying your debt. Or you could work on repaying any existing credit card debt quickly, so there’s less to worry about in the future.
If you’d like to talk to an expert about it, Debt Advisory Centre could help you explore your options.
Guest Post by Debt Advisory Centre