Most of us, when thinking about investing and finances, tend to think more in the long term rather than the short. We have always been told that you have to have a long term view from an investing standpoint and that may well be true in order to create long term wealth. But there is also a necessity for a shorter term view with regard to savings for events that may crop up without warning and cause distress to your everyday finances.
If your back deck suddenly collapses due to dry rot or your radiator decides it has lived long enough and gives up the ghost on a drive to see the Grandkids, your long term investment portfolio will be of no use to you if you have no way of accessing those invested funds.
It behooves the average person to have a short term strategy for amassing an emergency fund to see you through unforeseen events. The way to create this “rainy day” fund requires that you first determine exactly where your money is going every month in order to see if there are funds that may well be available but are going out to un-necessary expenditures. By choosing to make your daily coffee at home rather than buying it a large chain can save a whopping $150 per month based on the price of a single coffee per day at $5.00 (not an unrealistic number!) . So you can see that if you take a hard look at where the money goes you will be able to find ways to eliminate those expenditures and that money will provide the base for your emergency savings.
Once you have determined how you are going to fund the emergency pot then you have to figure out the best way of storing that money that both maximizes the return and allows you to access it when you require it quickly. The things to consider when choosing this holding area are that it must be easy to get at the money and it must be a safe investment that has little to no risk associated with it. The safest and most accessible ways to accomplish this is through a High Yield Savings Account, Money Market Accounts or a Money Market Mutual Funds.
All of these choices offer a safe and easy to access way of storing your emergency fund that offers a modest return on investment but little risk. Do your homework and find the best of these propositions that work for what you are trying to accomplish. The bottom line is that by having a short term savings plan you are able to minimize the risk of an unforeseen emergency impacting your family negatively from a financial sense. And remember, if the “rainy day” never comes you have lost nothing but gained another revenue stream for your retirement albeit with a smaller rate of return than your traditional longer term investment strategies.
Consumers in Canada often find themselves over their heads when it comes to personal debt. Perhaps your job situation changed, or an emergency caused you to borrow more than you really wanted to. However it happened, there are ways to ease the stranglehold all of those payments have on your monthly budget.
A debt consolidation loan is just what it sounds like – one loan that pays off multiple other debts, leaving you with a single, lower monthly payment. It allows you to breathe easier and have some room in your budget while still continuing to pay down your debt.
The most immediate benefit to a debt consolidation loan is that it frees up some cash in your monthly budget. Especially if you’re able to get a lower interest rate than what you were paying before. If you’re able to use a home equity loan, and therefore make the debt consolidation part of your mortgage, it’s likely you could free up a substantial amount each month.
A lower interest rate will also mean you wind up paying back a smaller amount of money over the course of the loan. This could save you hundreds of dollars by the time everything is paid off.
Over time, these lower payments (which should be easier to make on time) should increase your credit rating. This means that should you need to borrow again in the future, you should qualify for better interest rates on those future loans.
Perhaps the biggest benefit to a debt consolidation loan (aside from reducing the stress of multiple high payments each month) is that it’s an opportunity for a lesson learned. As you make your consolidated payment each month you have a reminder of just how much you can and cannot afford. Barring potential emergencies that are out of your control, this could lead to a lifelong habit of better debt management.
In USA, it is primarily important to understand debt consolidation services first. A debt consolidation program in USA is simply taking out a new loan to pay off several existing debts. For instance, if you have five creditors going after you, you can take out a single loan that can cover all your arrears from those five creditors. Of course, you would be subjected to a new loan and start paying the new loan immediately. However, you will have to deal with a single new creditor but have the chance to get lower interest rates or lower monthly payments depending on the new arrangement.
One of the most desired benefits of debt consolidation in USA is that it leaves the individual with a simplified debt payment program. Instead of having to handle several creditors, bills and check payments each month, a person in debt can have simplified payment terms and schedules because he would be dealing only with one new loan and creditor.
Secondly; the possibility of improving once credit score. Keep in mind that if a person has a huge total debt balance with many creditors, his credit score can take a steep dip. If he pays out these loans with a single debt consolidation program and then continue to pay the new loan religiously, then his credit score will eventually improve.
Thirdly; it is possible to get longer payment terms, lower monthly payments or even lower interest rates. There are programs that can put an individual in worse situations especially if various fees and higher interest rates are charged. The features that one should look for include lower interest rates, less fees and a kind of payment scheme that would suit one’s current and future finances.
Once the debts are consolidated into one account, the person is expected to handle future payments properly, promptly and in a much better way than before. In essence, the person who applied for debt consolidation must have a lot of discipline with regards to the new consolidated loan so that he can maximize the benefits. In the end, a consolidation program can be right for a person if he gives him enough discipline not just in paying the new loan but also in changing his spending habits.
Do you need some little cash in a hurry? One can feel pressure when they need fast money, and they have limited options. Here is a valid method that may be a solution for a person who requires some money in a matter of hours. It has proved useful; the approach is the best shot!
Select properties you no longer need
Do you have some items that you once valued but are no longer valuable to you? The items could be valuable to someone else and in high demand. Just check around your house and identify commonly sold items that are no longer useful to you. They could be books, DVDs, speakers and computers.
Look for the best way to sell the items
You may start with marketing the items to the people you know. Depending on where you live, select the best platform. For instance, one can go for online selling sites such as Amazon, eBay or Yard sales.
Set competitive prices for your items
It’s hard to decide on how much you wish to sell your properties. However, if you check the current market value of the same product, you can slash the price by half to attract buyers. However avoid selling the items at a deeply discounted price unless you are in dire need of the money.
Interact with the purchaser in a friendly way
Once you follow the steps above, you will be assured of receiving buying requests from customers in just a few minutes or hours. Once you get such clients, attend them in a friendly manner. It is human nature to like being treated with hospitality. If you use kind and polite words in the conversation, you will win the heart of the buyer. Arrange on how the customer will get the items, and if there will be after sale services, let the client know at this point. Make sure the payment method is genuine and safe. You have made quick cash legitimately!
Credit consolidation is a form of debt refinancing that in most instances entails taking out one loan to pay off many others. Occasionally, this process addresses the aspect of high consumer debt since it secures low interest rates to the entire debt load as well as providing the convenience of servicing only one loan. In some situations, debt consolidation is a useful strategy since it can involve extra costs as well as worsening the situation if experts do not advise the individuals before taking out a credit consolidation.
An debt consolidation plan is designed to provide a unique solution to an individual’s personal financial solutions. It provides credit consolidation companies with diverse options that is essential in helping the people in order to secure future plans of debts. These plans enable individuals to engage in a credit card consolidation program in order to understand more accurately the financial obligations. Unsecured debts, lower the monthly costs of keeping track of payments. Upon enrolling into a credit relief plan, individuals experience a reduction of interest rates as well as removal of penalties. The management of credit consolidating is organized for certified professional mostly on weekends, weekdays as well as on evenings to help individuals in determining the right program and helping them with a free budget analysis.
Agencies that are related to credit card relief actually will pay off all the smaller debts as well as consolidating the debts into one larger loan. It is believed that credit card consolidation is not a cheap option in view of the fact that it is likely to cost more in terms of interest over the entire duration of time. When considering a debt relief loan, it is close to calculating the exact costs of the current loans. A number of credit card relief companies sell their products based on the lower monthly payments. The negative side of credit card relief is based on the heavy penalties that are imposed towards the individuals if they fail to pay the loan. In most cases, debt relief loan have a negative effect on credit rating thus should be considered as the option to the last resort and not the answer to all debt predicaments.
In conclusion, credit card relief involves swapping several smaller loans for one large credit consolidating loan. This concept can be beneficial in terms of lowering monthly costs as well as keeping track of the payments. The terms and conditions of the credit relief in some instances are more expensive and experience long-term options.
If you have watched the movie ‘Wall street: Money Never Sleeps’ then you probably are familiar with the phrase ‘greed is good’ made infamous by the character Gordon Gekko. The movie was good but do not even once believe those poisonous words of Mr. Gekko as greed has landed many people in huge financial trouble. Taking a vacation you can’t afford to the Carribean on your credit card, taking a car loan to buy an overpriced sports car or undergoing a cosmetic surgery you don’t even need are just some of the things greed can make you do and the end result is a huge burden of bills coming to your mail box every month.
Repaying all these loans can cause you a lot of stress and anxiety in your life but thankfully there is debt consolidation. So what exactly is debt consolidation? To put it simply, it is a type of loan that you take to pay your debts and then start paying new monthly interests on the loan itself or in other words it consolidates all your loans into a single loan with a new interest rate. This has its benefits and we’ll look at some of them in this article.
Benefits of debt consolidation
Faced with a huge number of different loans, it can be tedious to keep track of them all and one can easily miss a payment which can lead to extra fines which are obviously not going to help the situation. However with debt consolidation, all these loans brought into one makes it very easy to manage and therefore relieving you of all the stress and anxiety.
Lower interest rates
The many different loans have different interest rates and the net of them all can be pretty high. The major benefit of consolidation is to make one big loan with a longer term which means reduced interest rates which in turn means less financial burden for you.
Maintains credit worthiness
Unlike filing for bankruptcy, debt consolidation retains your credit worthiness since you have only transferred your debts to one single lender and are still paying them.
Some debt consolidation lenders offer more than just the loans, financial counsel is also given to clients on ways to improve their finances. The reason for this is to help clients figure out why they were unable to pay their loans before consolidation and help them fix that so that the consolidation loan doesn’t become a problem too.
They say money is not everything but hell is it important in supporting this life. And since almost everything demands money, we and millions of people wake up everyday, to go to work in hopes that at the end of the month we will get paid for it. The irony is that we certainly get paid but we can’t quite place a finger on where most of it goes after payday.
This is the cycle of many across the world. Always surviving to the next paycheck. This should not be your cycle too. You can still live a comfortable and less stressful life with your current paycheck. How, you ask? Keep reading to find out.
Remember how your current salary used to be a wish or possibly a dream sometime in the past? You are now earning it, but you are still not sustained and satisfied with it. No doubt things have changed since then, your lifestyle, financial status, love life, responsibilities and even your money habits. Yet the cycle of of brokenness and disappointment keeps going on and on. And what do you think is the cause of all this? Insufficient money? Certainly not.
MONEY HABITS! Yes, your money habits is the cause of all your money problems. Your spending habits are crippling your finances. And am not saying you’re a spendthrift, not at all. Spendthrifts never have enough money and so do people living above their means. People who are always trying to keep up with the Jones. So what if the Jones down the street bought a new TV, a new car or went on an expensive holiday. Doesn’t mean you have to buy or travel too.
People squeeze themselves dry trying to keep up with other people not knowing that the Jones could also be struggling financially but won’t want to show it, so they bury themselves in a pile of debt to keep their lavish lifestyles. Doing this always leads to financial crisis sooner or later. Taking a debt as a source of money to support an expensive lifestyle is never a good idea. Because more money won’t solve the financial situation. Ending up in the same financial treadmill is always certain.
Want to take control of your finances? Start by taking control of your money habits. Cut on unnecessary expenditure as a start. The only and sure way to have a comfortable and less stressful life ahead is by, living within your means (at least for a while) then increasing your means. It won’t be easy to give up some luxuries but it will be worthwhile in the long run.
Let’s not forget about debts. Try and pay off your debt at a rate that is comfortable for you. DON’T strain yourself. As for the credit card(s), cut them up. It will take patience, discipline and focus. Persist through these hard times, the grass is much greener on the other side.