personal finance
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.
Yes, You Can Live Without Credit Cards
Yes, you can live without credit cards. Getting rid of your high interest financial crutches will set you free! Sounds simple, doesn’t it? It’s not simple but it’s very worthwhile. Can you envision your life without debt? Many people can’t imagine what that’s like so don’t even try. Try it for a minute. Think about how different life would be. It could be like that for you; but it’s up to you to take the narrow road and make some changes.
You might think you’re unable to deprive yourself of the security blanket a credit card can provide. If you see a credit card for its true colours, you’ll see that it does the exact opposite of provide you with security and peace of mind.
Credit Card Dangers
Credit cards bind you to a life of debt. They are not good debt unless you pay the balance every month, never pay interest or fees and get loyalty rewards. The thing is, most people who start out with these don’t go long before they’re carrying a balance and paying hefty fees.
Another problem with credit cards is that people use them to live on which means that everything they buy costs more. Buying gas and groceries on the credit card doesn’t make sense if you’re not going to pay the balance before the due date.
Many justify credit card purchases because, “It was on sale!” Well… how much will the TRUE cost be when you factor in all the costs associated with that credit card? Chances are you’re paying a heckuva lot more than the regular price! Credit cards are dangerous.
Are You Living Below Your Means?
A lot of people live above their means which means they spend more than they have. This vicious cycle will NOT end well! Many people live right at their means which means that they spend every spare cent they’ve got and never have anything put away for a rainy day. People in these two groups are probably two pay days away from bankruptcy and could not survive a financial crisis.
You need to budget and live within your means. Cash is king and can give you more buying power than you might imagine. By saving up and spending with cash you’ll never have another creditor call you, you’ll never dread opening the mailbox. You’ll start to have spare cash laying around because you won’t be spending more than you earn and you won’t be paying for last year’s vacation for the next five years.
Stop using stuff to fill a void in your life. Start living below your means. If you feel like you need a credit card for booking things and shopping online, buy a pre-paid credit card. They don’t cost much money to operate beyond membership / convenience fees (which are dwarfed in contrast to a typical credit card’s cost of doing business)
How Pre-Paid Credit Cards Work
A pre-paid credit card has a process by which you’ll load the card so you have an available balance. It’ll have a Visa or MasterCard logo and be accepted everywhere those cards are accepted. You’ll likely be able to check your balance by phone or on the internet just like a regular card but the big difference here is that you cannot spend what you cannot afford! Convenience without convenience fees!
Your Financial Future
If you think it doesn’t sound fun to live below your means, you’ve got a jaded perception of true financial freedom. Financial freedom means more disposable income instead of a mountain of debt and means paying the true cost of an item instead of principal + compound interest. Get a budget, get debt free and change your financial destiny for the better!
Saving More Money With Coupons – A Unique Way To Save Cash
Coupons help you save money on things if you use them correctly. Be careful you don’t simply use coupons for things you don’t need just because you could save cash, though. People who coupon-clip pride themselves on saving money but do they have anything to show for those efforts?
Here’s a great way to save even more money when you use coupons and to do it in a way that is measurable.
When you save money with coupons, what do you do with the money you save? If you’re like most people, that money simply gets spent. If you save $10 in groceries you’ll probably spend that $10 on something else. What if you made it a goal to see how much you could save in a tangible way?
Track Your Money Saving Coupon Use
Every week, figure out what you have saved with coupons and physically take that money and put it in a money jar. Use that jar for something specific such as: something new for the house, to pay down a debt or for your rainy day fund. If you save $10 a week by using money saving coupons at the gas bar, at the grocery store, the department store and the pharmacy, you can soon see a nice little fund build.