Steve Repak's Blog, page 7
July 12, 2014
Four Reasons Why Renting a House May Be Better Than Buying One
Growing up, I was constantly told that buying a home was the American Dream. When I was in the military, I was sometimes looked down upon because I was a renter, but it just made more sense for me at the time.
Here are four reasons you might consider renting rather than buying a home:
1. You are a traveler. I think back to my time in the military, when I had to pick up and move every three to four years. If you’re in a profession that requires you to move often, like I was, renting could easily be a better choice. Buying and selling a home are expensive endeavors, and getting involved with either one could wind up being a losing proposition, depending on how long you will own the house, the housing market in your area, and current interest rates, among other things.
2. You moved to an overheated market. Depending where you are geographically, your local real estate market may be red hot, requiring you to overpay to get the house you want. Think Houston, Texas, in the 1980s, just before it fell victim to the oil bust; Silicon Valley up until the dot-com bust in 2000; and, most recently, the pre-Great Recession housing market.
Comparing local rents to local home sale prices might help you determine if it makes better sense to rent rather than buy a home. If home values are high, consider renting until prices drop and you can score a deal on your dream home.
3. You hate commitment. Maybe you don’t want to be tied down for 20 or 30 years; maybe you don’t want to have to worry about maintenance costs, taxes, and fluctuating interest rates; or maybe you just want to have a change of scenery every once in a while.
And heaven forbid your neighborhood should deteriorate or a shopping center should pop up on the vacant land behind your house. It is a lot easier to get away from a not-so-good neighbor or neighborhood if you are renting.
4. You are starting over or just starting out. Financially speaking, if you are in one of these situations, you might not be able to come up with a nice down payment, or your cash flow could be a little unpredictable. There is nothing wrong with saving for a few years or waiting until you are sure you can afford a mortgage payment along with the taxes, insurance, HOA dues, and utilities that come with homeownership.
Some people like going to the beach, while other people like going to the mountains—renting versus buying is the same thing. The choice may simply come down to personal preferences. You can still live the American Dream if you don’t own a house, especially if homeownership doesn’t make sense for you.
via http://blog.equifax.com/real-estate/f...
Here are four reasons you might consider renting rather than buying a home:
1. You are a traveler. I think back to my time in the military, when I had to pick up and move every three to four years. If you’re in a profession that requires you to move often, like I was, renting could easily be a better choice. Buying and selling a home are expensive endeavors, and getting involved with either one could wind up being a losing proposition, depending on how long you will own the house, the housing market in your area, and current interest rates, among other things.
2. You moved to an overheated market. Depending where you are geographically, your local real estate market may be red hot, requiring you to overpay to get the house you want. Think Houston, Texas, in the 1980s, just before it fell victim to the oil bust; Silicon Valley up until the dot-com bust in 2000; and, most recently, the pre-Great Recession housing market.
Comparing local rents to local home sale prices might help you determine if it makes better sense to rent rather than buy a home. If home values are high, consider renting until prices drop and you can score a deal on your dream home.
3. You hate commitment. Maybe you don’t want to be tied down for 20 or 30 years; maybe you don’t want to have to worry about maintenance costs, taxes, and fluctuating interest rates; or maybe you just want to have a change of scenery every once in a while.
And heaven forbid your neighborhood should deteriorate or a shopping center should pop up on the vacant land behind your house. It is a lot easier to get away from a not-so-good neighbor or neighborhood if you are renting.
4. You are starting over or just starting out. Financially speaking, if you are in one of these situations, you might not be able to come up with a nice down payment, or your cash flow could be a little unpredictable. There is nothing wrong with saving for a few years or waiting until you are sure you can afford a mortgage payment along with the taxes, insurance, HOA dues, and utilities that come with homeownership.
Some people like going to the beach, while other people like going to the mountains—renting versus buying is the same thing. The choice may simply come down to personal preferences. You can still live the American Dream if you don’t own a house, especially if homeownership doesn’t make sense for you.
via http://blog.equifax.com/real-estate/f...
July 8, 2014
Summer Fun That Won't Break The Bank
With summer upon us I thought it would be timely to write about ways we can have some summer fun that won’t break the bank. When budgets are stretched to the max, the key is to be flexible and creative. The best memories aren’t always the final destination but many times it’s the journey that got us there.
GROUPON®
To tell you the truth, you don’t have to be on a tight budget for this to make sense. I think anyone who is looking for some great deals definitely should give it a try. From paintball to movies, to fine restaurants and frozen yogurt, Groupon is a great website that features discounted gift certificates for any number of goods and services, including vacations. My only caveat is to use these as a treat and not a reason for you to overspend.
Planes, Trains & Automobiles
Ok, maybe not all three. I remember when I was little my parents would throw my sister and me into the back of their pickup truck with a camper shell and we would drive a couple hundred miles to visit relatives. I strongly discourage this manner of travel because I think I am still scarred from those experiences. A better idea that may be just as adventurous but a lot more comfortable is to travel by train. With the price of gas skyrocketing, trains can be a much more affordable means of transportation compared to a car or airplane.
Sharecation
OK, I know that really isn’t a word but it is a great way to reduce the cost of a vacation by planning it with a group of people. When you can spread the cost out between a few families, a home, villa, or condo at your favorite beach or vacation getaway can be a win-win situation for everyone. Having a kitchen and a washer and dryer can not only save on food cost, but you won’t have to pack as much since you can wash clothes there. As an added benefit kids behave much better when there are other adults around!
Your Favorite Search Engine
If you need some ideas, go to your favorite search engine on the internet and type in “fun things to do in ____________.” You fill in the blank. For example, whenever there is a long weekend, I do a search for “fun things to do in Charlotte, North Carolina” or if I have more time I just type in the State I want to visit. You can find some great historical places, parks, museums, festivals, and many other fun places to visit.
Staycation
Unlike the sharecation where you vacation with other families, a staycation is one where you create adventures at home. You don’t have to pay big bucks watching professional baseball or soccer at an overpriced stadium but you can take your little ones or maybe not so little ones to the local baseball or soccer ball field and it most likely won’t cost you a dime but you can still get experience the excitement of a live game. Another idea is the adventure of camping, but you can do it in the safety of your backyard where if you get tired of roughing it outside, you are just a few steps from the comfort of your home.
As I said at the beginning, the key is to be flexible and creative. Priceless memories don’t always have to be expensive. What matters most is the time that is spent together and not what you spent.
via@ Jennifer Maggio http://thelifeofasinglemom.com/summer...
Life of A Single Mom Ministries
GROUPON®
To tell you the truth, you don’t have to be on a tight budget for this to make sense. I think anyone who is looking for some great deals definitely should give it a try. From paintball to movies, to fine restaurants and frozen yogurt, Groupon is a great website that features discounted gift certificates for any number of goods and services, including vacations. My only caveat is to use these as a treat and not a reason for you to overspend.
Planes, Trains & Automobiles
Ok, maybe not all three. I remember when I was little my parents would throw my sister and me into the back of their pickup truck with a camper shell and we would drive a couple hundred miles to visit relatives. I strongly discourage this manner of travel because I think I am still scarred from those experiences. A better idea that may be just as adventurous but a lot more comfortable is to travel by train. With the price of gas skyrocketing, trains can be a much more affordable means of transportation compared to a car or airplane.
Sharecation
OK, I know that really isn’t a word but it is a great way to reduce the cost of a vacation by planning it with a group of people. When you can spread the cost out between a few families, a home, villa, or condo at your favorite beach or vacation getaway can be a win-win situation for everyone. Having a kitchen and a washer and dryer can not only save on food cost, but you won’t have to pack as much since you can wash clothes there. As an added benefit kids behave much better when there are other adults around!
Your Favorite Search Engine
If you need some ideas, go to your favorite search engine on the internet and type in “fun things to do in ____________.” You fill in the blank. For example, whenever there is a long weekend, I do a search for “fun things to do in Charlotte, North Carolina” or if I have more time I just type in the State I want to visit. You can find some great historical places, parks, museums, festivals, and many other fun places to visit.
Staycation
Unlike the sharecation where you vacation with other families, a staycation is one where you create adventures at home. You don’t have to pay big bucks watching professional baseball or soccer at an overpriced stadium but you can take your little ones or maybe not so little ones to the local baseball or soccer ball field and it most likely won’t cost you a dime but you can still get experience the excitement of a live game. Another idea is the adventure of camping, but you can do it in the safety of your backyard where if you get tired of roughing it outside, you are just a few steps from the comfort of your home.
As I said at the beginning, the key is to be flexible and creative. Priceless memories don’t always have to be expensive. What matters most is the time that is spent together and not what you spent.
via@ Jennifer Maggio http://thelifeofasinglemom.com/summer...
Life of A Single Mom Ministries
June 16, 2014
Money Can't Buy Hapiness but a Vacation Might!
If you didn’t know…. Money can’t buy happiness… well maybe not long term happiness anyways. But it can certainly buy you a vacation, and with it being summer time I thought it would be appropriate to talk about how to vacation without going bankrupt.
If you are working hard isn’t it ok to sometimes also play hard? Vacations are a time when you can reconnect with friends and family and recharge your batteries. What happens many times though is we either spend too much or finance our vacations the wrong way… and yes, I mean finance them through the use of credit cards. I have two tips that you can use so you can enjoy your time on vacation instead of worrying about how you will have to pay for it.
1. Pay Now or you might have to Pray about it Later
When I say pay now…that means pay for your vacation with what you have in your vacation fund. Most everybody has heard of the envelope system where you set aside money in envelopes for each of your spending categories. I use a variation of that concept for my larger expenses throughout the year like property taxes, home owners insurance and family vacation. For me I actually have a separate account that is not linked to either my checking or savings. It is a second savings account that I have at another financial institution. The reason I do that is so I am not tempted to use that money for anything but paying for my vacation. I set my budget for our annual family vacation and then I create a draft or automatic bill to transfer a portion of this to my vacation account each pay period. For example, let’s say I am budgeting $2600 for my next vacation. If I am paid bi-weekly this works out to be 26 paydays per year, so I would set up a draft for every two weeks to transfer approximately $100. If you get paid weekly that would be $50 dollars a week. If you do this for an entire year you will have $2,600 saved up for your vacation next year. The best part is that you won’t have to put it on your credit card!
2. Sometimes Cheap Meat is Good
I like to tell people that cheap meat isn’t good and good meat isn’t cheap, or you get what you pay for. The exception to that rule can be vacation time. To save money consider vacationing off season. You can find some great vacation packages by not taking them during the peak months. Also, instead of staying at a resort, consider renting out a condo or apartment. What I like about that is that you have the ability to cook some or all of your meals instead of eating out. If you have a family of four or more, taking everybody out to eat three times a day for a week can eat up your entire vacation budget alone! Consider cheaper methods of travel. If you have the time, consider traveling by train. Yes I said train! Believe it or not train travel is becoming increasingly popular as a way to get to your destination and see some of this great country along the way.
Ecclesiastes 8:15 (NIV) “So I commend the enjoyment of life, because there is nothing better for a person under the sun than to eat and drink and be glad. Then joy will accompany them in their told all of the day of the life God has given them under the sun”.
Most people work extremely hard and I believe it is perfectly acceptable to invest some money on a vacation. The memories you will create are priceless. They will stay with you and your family for a lifetime; you just don’t want to spend the rest of your life paying for it!
via http://nicoleodell.com/2014/06/money-...
If you are working hard isn’t it ok to sometimes also play hard? Vacations are a time when you can reconnect with friends and family and recharge your batteries. What happens many times though is we either spend too much or finance our vacations the wrong way… and yes, I mean finance them through the use of credit cards. I have two tips that you can use so you can enjoy your time on vacation instead of worrying about how you will have to pay for it.
1. Pay Now or you might have to Pray about it Later
When I say pay now…that means pay for your vacation with what you have in your vacation fund. Most everybody has heard of the envelope system where you set aside money in envelopes for each of your spending categories. I use a variation of that concept for my larger expenses throughout the year like property taxes, home owners insurance and family vacation. For me I actually have a separate account that is not linked to either my checking or savings. It is a second savings account that I have at another financial institution. The reason I do that is so I am not tempted to use that money for anything but paying for my vacation. I set my budget for our annual family vacation and then I create a draft or automatic bill to transfer a portion of this to my vacation account each pay period. For example, let’s say I am budgeting $2600 for my next vacation. If I am paid bi-weekly this works out to be 26 paydays per year, so I would set up a draft for every two weeks to transfer approximately $100. If you get paid weekly that would be $50 dollars a week. If you do this for an entire year you will have $2,600 saved up for your vacation next year. The best part is that you won’t have to put it on your credit card!
2. Sometimes Cheap Meat is Good
I like to tell people that cheap meat isn’t good and good meat isn’t cheap, or you get what you pay for. The exception to that rule can be vacation time. To save money consider vacationing off season. You can find some great vacation packages by not taking them during the peak months. Also, instead of staying at a resort, consider renting out a condo or apartment. What I like about that is that you have the ability to cook some or all of your meals instead of eating out. If you have a family of four or more, taking everybody out to eat three times a day for a week can eat up your entire vacation budget alone! Consider cheaper methods of travel. If you have the time, consider traveling by train. Yes I said train! Believe it or not train travel is becoming increasingly popular as a way to get to your destination and see some of this great country along the way.
Ecclesiastes 8:15 (NIV) “So I commend the enjoyment of life, because there is nothing better for a person under the sun than to eat and drink and be glad. Then joy will accompany them in their told all of the day of the life God has given them under the sun”.
Most people work extremely hard and I believe it is perfectly acceptable to invest some money on a vacation. The memories you will create are priceless. They will stay with you and your family for a lifetime; you just don’t want to spend the rest of your life paying for it!
via http://nicoleodell.com/2014/06/money-...
May 27, 2014
Finance Tips for Every Stage of Life
No matter what stage of life you’re in, money matters. Whether you’re working to earn an allowance, supporting a family, or gearing up for retirement, your finances are often at the forefront of your mind.
Here are a few tips to keep in mind (and pass along) for all stages of your life:
Teens
Giving is important. One of the earliest lessons most kids receive is about sharing. It’s important not to forget this as you move into your teen years. I have found that the people who are most content with their lives are the ones who share their good fortunes with others. When you get your first job, consider supporting a charity of your choice. Even $10 every few months can help.
Wants and needs are different. In your teen years, it can be hard to distinguish between needs and wants, especially when you’re looking at what your peers have. The reality is, food, shelter, transportation, and clothing are needs—going out to eat every night is not. Wearing clothes is a need—designer clothes are not. Peer pressure is real, but learning to stand up to it is important. If you learn in your teens how to control your emotions and distinguish needs from wants when making financial decisions, you can avoid financial trouble when you get older.
20s and 30s
You’re not invincible. When you’re in your 20s, it’s easy to think you are invincible and will live forever. But that mindset can hurt you financially, especially when it comes to planning for retirement. The best lesson you can learn in your 20s is the importance of compounding money. The earlier you can start saving money, the more you will have later. Don’t wait until you’re on the brink of retirement to start saving. You’ll have to save a lot more, a lot faster, than you would have if you’d started in your 20s.
You should earn interest, not pay it. Many people in their 30s are still paying off their student loans or credit card debt from bad purchasing decisions they made in their 20s. You don’t have to be a finance professional to understand that the best way to increase your wealth is by earning interest on your own money instead of paying interest to someone else. Pay down those debts as soon as possible. If you must have debt, know the difference between good debt and bad debt.
40s and 50s
Prioritizing is important. You are getting close to your peak earning years, but why does it seem like you can never get ahead? Mortgage payments, car loans, and kids are most likely consuming all of your cash. This is definitely the time to learn about financial priorities. The key thing to remember is that retirement should be your number one priority (unless of course, your plan is to move in with your kids and expect them to take care of you during your golden years).
You can’t change the past. There are many people who don’t even start to think about planning for retirement until they are in their 50s. If this sounds like you, know that although it would have been less painful financially had you started saving earlier, it is never too late to start. Don’t whine about something you can’t change—you probably don’t have a time machine to go back to your 20s—and instead buckle down and try to put every cent you make away for retirement.
60s and beyond
A happy spouse means a happy house. Did you really think that you were going to retire and sit around the house doing nothing? This is a great time to consider a second career or maybe give back by donating your time to your favorite charity or cause. Not only will you feel good about giving back, you might also stop driving your spouse crazy by being home all day.
Your priorities will change. You might not be ready to slow down, but the lesson here is that you won’t live forever. As you age, review all of the wills and legal documents you might have drafted in your younger years, and make the changes you deem necessary.
Pass on what you know. Some of the greatest gifts you can pass on to your loved ones (and maybe even perfect strangers) are the lessons you’ve learned over the course of your life. Spend time with the people you love, teach them what you know, and take some time to smell the roses.
No matter what age bracket you’re in, it’s important to set financial goals and learn from your—and others’—mistakes. What are some money management tips you have to share?
via http://blog.equifax.com/credit/financ...
Here are a few tips to keep in mind (and pass along) for all stages of your life:
Teens
Giving is important. One of the earliest lessons most kids receive is about sharing. It’s important not to forget this as you move into your teen years. I have found that the people who are most content with their lives are the ones who share their good fortunes with others. When you get your first job, consider supporting a charity of your choice. Even $10 every few months can help.
Wants and needs are different. In your teen years, it can be hard to distinguish between needs and wants, especially when you’re looking at what your peers have. The reality is, food, shelter, transportation, and clothing are needs—going out to eat every night is not. Wearing clothes is a need—designer clothes are not. Peer pressure is real, but learning to stand up to it is important. If you learn in your teens how to control your emotions and distinguish needs from wants when making financial decisions, you can avoid financial trouble when you get older.
20s and 30s
You’re not invincible. When you’re in your 20s, it’s easy to think you are invincible and will live forever. But that mindset can hurt you financially, especially when it comes to planning for retirement. The best lesson you can learn in your 20s is the importance of compounding money. The earlier you can start saving money, the more you will have later. Don’t wait until you’re on the brink of retirement to start saving. You’ll have to save a lot more, a lot faster, than you would have if you’d started in your 20s.
You should earn interest, not pay it. Many people in their 30s are still paying off their student loans or credit card debt from bad purchasing decisions they made in their 20s. You don’t have to be a finance professional to understand that the best way to increase your wealth is by earning interest on your own money instead of paying interest to someone else. Pay down those debts as soon as possible. If you must have debt, know the difference between good debt and bad debt.
40s and 50s
Prioritizing is important. You are getting close to your peak earning years, but why does it seem like you can never get ahead? Mortgage payments, car loans, and kids are most likely consuming all of your cash. This is definitely the time to learn about financial priorities. The key thing to remember is that retirement should be your number one priority (unless of course, your plan is to move in with your kids and expect them to take care of you during your golden years).
You can’t change the past. There are many people who don’t even start to think about planning for retirement until they are in their 50s. If this sounds like you, know that although it would have been less painful financially had you started saving earlier, it is never too late to start. Don’t whine about something you can’t change—you probably don’t have a time machine to go back to your 20s—and instead buckle down and try to put every cent you make away for retirement.
60s and beyond
A happy spouse means a happy house. Did you really think that you were going to retire and sit around the house doing nothing? This is a great time to consider a second career or maybe give back by donating your time to your favorite charity or cause. Not only will you feel good about giving back, you might also stop driving your spouse crazy by being home all day.
Your priorities will change. You might not be ready to slow down, but the lesson here is that you won’t live forever. As you age, review all of the wills and legal documents you might have drafted in your younger years, and make the changes you deem necessary.
Pass on what you know. Some of the greatest gifts you can pass on to your loved ones (and maybe even perfect strangers) are the lessons you’ve learned over the course of your life. Spend time with the people you love, teach them what you know, and take some time to smell the roses.
No matter what age bracket you’re in, it’s important to set financial goals and learn from your—and others’—mistakes. What are some money management tips you have to share?
via http://blog.equifax.com/credit/financ...
May 19, 2014
Cash or Credit? The Risks and Benefits of a Cash-Only Lifestyle
In the wake of the big Target and Neiman Marcus data breaches, you may be wondering if cash payment is the way to go. After all, if you pay with cash, there’s no debit or credit card information for hackers to steal.
In addition to protecting you from this type of information theft, paying with cash can also be good for your financial health because it encourages you to spend less. According to a study conducted by Drazen Prelec and Duncan Simester, business professors at MIT, customers are willing to pay more for items when they are using credit cards instead of cash.
Unfortunately, paying with cash isn’t the perfect solution to your identity theft and money management concerns. It has its downside, too.
Credit tips: Paying with cash vs. credit card
Cons
You can lose your cash. You can also lose your credit card, of course, but you can always order a new one—which shouldn’t cost you anything.
Your cash can get stolen. While your credit cards can also be stolen, you can cancel them and order replacements. Federal regulations provide protection against fraudulent charges, so if a thief is able to use your card, you may not be responsible for the charges.
You could face withdrawal fees. If you fail to take cash out at one of your bank’s ATMs and decide to use an unaffiliated machine, you could face fees. To give you some perspective, paying $2.50 to withdraw $20 is the equivalent of paying 12.5 percent interest.
You aren’t using your credit. While this may sound like a pro, the problem is that your credit score could suffer if you aren’t building any credit in your name. Building a positive credit history requires some credit usage, and without a credit history, you may find it hard to get loans, such as those for cars or homes.
Pros
Your credit or debit card data can’t be hacked because you’re not using it. If you use cash at checkout, there’s nothing for hackers to steal.
You may be more mindful of your spending. Breaking a large bill hurts more than swiping a card. If you have a spending problem, consider trading your card for cold hard cash.
You can’t spend what you don’t have. Unlike a credit card, which allows you to spend more than what you actually have in the bank, once your cash is gone you aren’t able to spend any more.
I know some readers will talk about mileage, points, and so on, and how it might be easier to track your spending when you use a credit card. At the end of the day, you have to decide which payment method is best for you. Let us know what you think about purchasing items with either cash or credit.
via @Equifax Finance Blog
http://blog.equifax.com/credit/cash-o...
In addition to protecting you from this type of information theft, paying with cash can also be good for your financial health because it encourages you to spend less. According to a study conducted by Drazen Prelec and Duncan Simester, business professors at MIT, customers are willing to pay more for items when they are using credit cards instead of cash.
Unfortunately, paying with cash isn’t the perfect solution to your identity theft and money management concerns. It has its downside, too.
Credit tips: Paying with cash vs. credit card
Cons
You can lose your cash. You can also lose your credit card, of course, but you can always order a new one—which shouldn’t cost you anything.
Your cash can get stolen. While your credit cards can also be stolen, you can cancel them and order replacements. Federal regulations provide protection against fraudulent charges, so if a thief is able to use your card, you may not be responsible for the charges.
You could face withdrawal fees. If you fail to take cash out at one of your bank’s ATMs and decide to use an unaffiliated machine, you could face fees. To give you some perspective, paying $2.50 to withdraw $20 is the equivalent of paying 12.5 percent interest.
You aren’t using your credit. While this may sound like a pro, the problem is that your credit score could suffer if you aren’t building any credit in your name. Building a positive credit history requires some credit usage, and without a credit history, you may find it hard to get loans, such as those for cars or homes.
Pros
Your credit or debit card data can’t be hacked because you’re not using it. If you use cash at checkout, there’s nothing for hackers to steal.
You may be more mindful of your spending. Breaking a large bill hurts more than swiping a card. If you have a spending problem, consider trading your card for cold hard cash.
You can’t spend what you don’t have. Unlike a credit card, which allows you to spend more than what you actually have in the bank, once your cash is gone you aren’t able to spend any more.
I know some readers will talk about mileage, points, and so on, and how it might be easier to track your spending when you use a credit card. At the end of the day, you have to decide which payment method is best for you. Let us know what you think about purchasing items with either cash or credit.
via @Equifax Finance Blog
http://blog.equifax.com/credit/cash-o...
May 15, 2014
Time to Get Back on Track
May is National Recommitment Month so this will be a perfect time to get back on track with the goals you may have set for yourself at the beginning of the year. As I have said in many other articles, I am not a fan of New Year’s resolutions. The reason I am not a fan is because almost everyone is looking for shortcuts and quick fixes, trying to right whatever is wrong in their life in the easiest way possible.
God does not promise us that our lives will be easy but as Paul says in Philippians 4:13, “I can do all things through Christ who strengthens me.” People often set goals for themselves only to find out that it is not easy, that it takes hard work and time. At this point many will just give up. What sets the successful apart from the rest is not giving up in the face of challenges or difficulty.
The points I will share with you next are not just to help you achieve your financial goals, but you can apply them to bettering your marriage, living a healthier lifestyle or raising your children to name just a few.
1. Be Willing to Sacrifice
If you want to have more money than month, you have to be willing to make sacrifices (doing without some things so you will spend less) in order to have more. The same concept applies to a marriage or healthy lifestyle. To have something better later you have to be willing to give something up now because anything worth having is worth making sacrifices for.
2. Don’t Allow Your Emotions to Cloud Your Decisions
It is in our nature to make decisions based upon how we are feeling at the moment but people who are able to make a decision that is not based on if they are happy or upset at the moment usually have better results. A great example is when you are feeling bad and you go out to buy something that might make you feel good in the short term but may hurt you financially down the road.
3. Make Long-Term Plans
People who are good with their money make long-term plans for their finances. They look at 10 to 20 years from now. It is not about next week, next month or next year. Think of it as a lifestyle change. There is nothing wrong with a jumpstart but in reality if you want a good marriage, if you want a healthy life, or if you want your financial picture to be different, you have to understand that you are running a marathon and not a sprint. Whatever the reason you might have not followed through with the goals you set in January, it honestly doesn’t matter.
What does matter is that you to recommit yourself to those goals!
via http://nicoleodell.com/2014/05/time-g...
God does not promise us that our lives will be easy but as Paul says in Philippians 4:13, “I can do all things through Christ who strengthens me.” People often set goals for themselves only to find out that it is not easy, that it takes hard work and time. At this point many will just give up. What sets the successful apart from the rest is not giving up in the face of challenges or difficulty.
The points I will share with you next are not just to help you achieve your financial goals, but you can apply them to bettering your marriage, living a healthier lifestyle or raising your children to name just a few.
1. Be Willing to Sacrifice
If you want to have more money than month, you have to be willing to make sacrifices (doing without some things so you will spend less) in order to have more. The same concept applies to a marriage or healthy lifestyle. To have something better later you have to be willing to give something up now because anything worth having is worth making sacrifices for.
2. Don’t Allow Your Emotions to Cloud Your Decisions
It is in our nature to make decisions based upon how we are feeling at the moment but people who are able to make a decision that is not based on if they are happy or upset at the moment usually have better results. A great example is when you are feeling bad and you go out to buy something that might make you feel good in the short term but may hurt you financially down the road.
3. Make Long-Term Plans
People who are good with their money make long-term plans for their finances. They look at 10 to 20 years from now. It is not about next week, next month or next year. Think of it as a lifestyle change. There is nothing wrong with a jumpstart but in reality if you want a good marriage, if you want a healthy life, or if you want your financial picture to be different, you have to understand that you are running a marathon and not a sprint. Whatever the reason you might have not followed through with the goals you set in January, it honestly doesn’t matter.
What does matter is that you to recommit yourself to those goals!
via http://nicoleodell.com/2014/05/time-g...
April 11, 2014
How to Live a VIP Lifestyle on a Budget
There’s a saying that good meat isn’t cheap and cheap meat isn’t good—in other words, you get what you pay for. So when you’re on a budget, how can you enjoy the finer things in life without breaking the bank?
Fortunately, you can treat yourself and the ones you love to some VIP-style fun every once in a while, even if you don’t make a million dollars a year. Here are a few ways you can eat out, travel, and have fun on a budget:
Dining out
Going out to eat is definitely a treat, and costs can quickly add up. Save money by not ordering drinks and instead only ordering water. Non-alcoholic beverages and wine are where restaurants make most of their profits.
Another way to save a little money while still being able to eat great food is to go out for lunch instead of dinner. The portions will most likely be smaller, but that means your bill will be smaller, too. You can also try a different day of the week. Many restaurants offer deals on slower-traffic days in order to drive more business.
Traveling
Try vacationing in the off-season. You can find some great vacation packages by booking during off-peak months, and resorts and beaches may not be very busy during those times.
If you are flying, try scheduling your flight to leave and return during the middle of the week or booking flights with connections instead of non-stop or direct flights. It won’t be as quick, but it will be cheaper (and you’ll have some time to stretch your legs). You may also want to consider alternate means of transportation, such as bus or train, if time is not a factor and if your travel destination is only a few hundred miles away.
The finer things
If you love to be pampered, consider checking out the local beauty colleges or spa training schools in your area instead of pricier salons or spas. You’ll save money, and the person taking care of you will appreciate the opportunity to further perfect his or her craft. You can also try daily deals sites, such as LivingSocial and Groupon, which often have discounted prices for spa and salon services. But buyer beware: You can definitely wreck your budget if you don’t know when to say no to a deal.
If you prefer a good shopping spree to unwind, gently used could be the way to go. Consider shopping at clothing consignment stores and online stores. You can find new and nearly new items for a fraction of the price.
Can you travel, eat out, and enjoy the finer things without breaking the bank? I think you can as long as you have some self-control, are able to budget, and remember that you aren’t a multi-millionaire. What are your tips for enjoying yourself on a budget?
via http://blog.equifax.com/retirement/ho...
Fortunately, you can treat yourself and the ones you love to some VIP-style fun every once in a while, even if you don’t make a million dollars a year. Here are a few ways you can eat out, travel, and have fun on a budget:
Dining out
Going out to eat is definitely a treat, and costs can quickly add up. Save money by not ordering drinks and instead only ordering water. Non-alcoholic beverages and wine are where restaurants make most of their profits.
Another way to save a little money while still being able to eat great food is to go out for lunch instead of dinner. The portions will most likely be smaller, but that means your bill will be smaller, too. You can also try a different day of the week. Many restaurants offer deals on slower-traffic days in order to drive more business.
Traveling
Try vacationing in the off-season. You can find some great vacation packages by booking during off-peak months, and resorts and beaches may not be very busy during those times.
If you are flying, try scheduling your flight to leave and return during the middle of the week or booking flights with connections instead of non-stop or direct flights. It won’t be as quick, but it will be cheaper (and you’ll have some time to stretch your legs). You may also want to consider alternate means of transportation, such as bus or train, if time is not a factor and if your travel destination is only a few hundred miles away.
The finer things
If you love to be pampered, consider checking out the local beauty colleges or spa training schools in your area instead of pricier salons or spas. You’ll save money, and the person taking care of you will appreciate the opportunity to further perfect his or her craft. You can also try daily deals sites, such as LivingSocial and Groupon, which often have discounted prices for spa and salon services. But buyer beware: You can definitely wreck your budget if you don’t know when to say no to a deal.
If you prefer a good shopping spree to unwind, gently used could be the way to go. Consider shopping at clothing consignment stores and online stores. You can find new and nearly new items for a fraction of the price.
Can you travel, eat out, and enjoy the finer things without breaking the bank? I think you can as long as you have some self-control, are able to budget, and remember that you aren’t a multi-millionaire. What are your tips for enjoying yourself on a budget?
via http://blog.equifax.com/retirement/ho...
April 7, 2014
Different Decision for Different Results
Who couldn’t use some extra money? I know I could. Something else I know is that people who have money earn interest on theirs, instead of paying interest to someone else. If you are ready for some different results and want to start earning interest on some of your money, try applying these tips so you can spend less and save more.
1.Eliminate cable or at least reduce the number of channels to which you subscribe
2.Sell items you no longer use on Craigslist, EBay, or at a yard sale
3.Only drink water at lunch and dinner and never order dessert
4.If you have a cell phone, get rid of your home phone
5.Pack your lunches and snacks instead of eating out or using the vending machine
6.Turn the thermostat down in the winter and up in the summer
7.Exchange your smart phone for a TracFone
8.Bargain shop for clothes, food and household items
9.Sell your plasma
10.Make a list and make sure you eat before going grocery shopping
11.Pay yourself before paying anyone else (if you bank online set it up as an automatic bill
)
12.Check out movies from the library instead of renting or ordering on-demand
13.Sell your jewelry that you seldom or never wear
14.Choose generic/store brand over brand name
15.Spend time helping others instead of spending money on things that can’t love you back
Insanity is doing the same thing over and over again and expecting different results. There are many ways that you can spend less and save more but the most important lesson is that you have to start making different decisions when it comes to your money. If you do that, you will start getting different results.
via http://thelifeofasinglemom.com/differ...
1.Eliminate cable or at least reduce the number of channels to which you subscribe
2.Sell items you no longer use on Craigslist, EBay, or at a yard sale
3.Only drink water at lunch and dinner and never order dessert
4.If you have a cell phone, get rid of your home phone
5.Pack your lunches and snacks instead of eating out or using the vending machine
6.Turn the thermostat down in the winter and up in the summer
7.Exchange your smart phone for a TracFone
8.Bargain shop for clothes, food and household items
9.Sell your plasma
10.Make a list and make sure you eat before going grocery shopping
11.Pay yourself before paying anyone else (if you bank online set it up as an automatic bill
)
12.Check out movies from the library instead of renting or ordering on-demand
13.Sell your jewelry that you seldom or never wear
14.Choose generic/store brand over brand name
15.Spend time helping others instead of spending money on things that can’t love you back
Insanity is doing the same thing over and over again and expecting different results. There are many ways that you can spend less and save more but the most important lesson is that you have to start making different decisions when it comes to your money. If you do that, you will start getting different results.
via http://thelifeofasinglemom.com/differ...
March 26, 2014
How I Overcame My Obstacles and Paid Off My Credit Card Debt
I knew a person who came from extremely humble beginnings. Growing up, he didn’t have that much. Kids made fun of the clothes he wore, and when he got into high school he worked evenings and weekends just to have a little spending money. Neither of his parents had a college degree, so education wasn’t much of a priority. He graduated from high school and decided to join the Army.
This was the first time he saw real money. He took home about $700 every two weeks. His clothes, housing, and food were paid for by the military, but he had trouble saving money and would always find himself with nothing in the bank. After about a year in the Army, he got his first credit card. Before his signature on the back of the credit card was dry, he’d maxed it out.
Even though he lived paycheck to paycheck with a maxed out credit card and no money in savings, he was promoted to private first class. A higher rank meant a higher salary, which gave him the opportunity to get another credit card—and he soon maxed that out.
You might be thinking that he would eventually catch on, but the cycle continued to repeat. He would get promoted, make more money, get more credit, and max out his credit cards. As long as he could make the minimum payments, he thought had a handle on his debt. He would always tell himself that the next time he got promoted, he would have more money to pay off credit card debt.
I’m sorry to say that after 12 years in the Army, he left with $32,000 in credit card debt. I’m even sorrier to tell you that this person was me.
I know what it feels like to live paycheck to paycheck and have nothing in savings, a poor credit score, and a mountain of debt. I want to let you know that there is hope if you can follow these four steps:
1. Admit there is a problem. I thought that because my friends had debt, it was OK for me to have debt, too. I had to admit that I had a spending problem—I spent more than I earned. Nobody likes to admit that he or she has a problem, but you have to take responsibility in order for things to get better.
2. Start spending less. What helped me curb my spending was keeping a spending journal. In it, I wrote down exactly where, what, and how much I was spending each day. After doing that for a few weeks, I started keeping more money in my pocket.
3. Build your savings. It might not make a lot of sense, but the only way I was able to get out of debt was to build up my savings. When I first started saving, I would have to use my credit card when an emergency came up. After I built my savings and those emergencies reared their ugly head, I was able to take care of them without resorting to credit cards.
4. Make a plan and be flexible. That’s not a mistake. Don’t make a plan and then stick to it no matter what. There were times I felt I would never be able to pay off all of my debt because things would happen and throw me off track. I had to be flexible and adjust my plan.
What worked for me was making minimum payments on my debts with the lowest interest rates, and paying more towards the cards with the higher interest rates. You could also start by paying off the card with the lowest balance and working up from there. The only wrong way to approach paying off your debt is to not have a plan at all.
http://blog.equifax.com/credit/how-i-...
This was the first time he saw real money. He took home about $700 every two weeks. His clothes, housing, and food were paid for by the military, but he had trouble saving money and would always find himself with nothing in the bank. After about a year in the Army, he got his first credit card. Before his signature on the back of the credit card was dry, he’d maxed it out.
Even though he lived paycheck to paycheck with a maxed out credit card and no money in savings, he was promoted to private first class. A higher rank meant a higher salary, which gave him the opportunity to get another credit card—and he soon maxed that out.
You might be thinking that he would eventually catch on, but the cycle continued to repeat. He would get promoted, make more money, get more credit, and max out his credit cards. As long as he could make the minimum payments, he thought had a handle on his debt. He would always tell himself that the next time he got promoted, he would have more money to pay off credit card debt.
I’m sorry to say that after 12 years in the Army, he left with $32,000 in credit card debt. I’m even sorrier to tell you that this person was me.
I know what it feels like to live paycheck to paycheck and have nothing in savings, a poor credit score, and a mountain of debt. I want to let you know that there is hope if you can follow these four steps:
1. Admit there is a problem. I thought that because my friends had debt, it was OK for me to have debt, too. I had to admit that I had a spending problem—I spent more than I earned. Nobody likes to admit that he or she has a problem, but you have to take responsibility in order for things to get better.
2. Start spending less. What helped me curb my spending was keeping a spending journal. In it, I wrote down exactly where, what, and how much I was spending each day. After doing that for a few weeks, I started keeping more money in my pocket.
3. Build your savings. It might not make a lot of sense, but the only way I was able to get out of debt was to build up my savings. When I first started saving, I would have to use my credit card when an emergency came up. After I built my savings and those emergencies reared their ugly head, I was able to take care of them without resorting to credit cards.
4. Make a plan and be flexible. That’s not a mistake. Don’t make a plan and then stick to it no matter what. There were times I felt I would never be able to pay off all of my debt because things would happen and throw me off track. I had to be flexible and adjust my plan.
What worked for me was making minimum payments on my debts with the lowest interest rates, and paying more towards the cards with the higher interest rates. You could also start by paying off the card with the lowest balance and working up from there. The only wrong way to approach paying off your debt is to not have a plan at all.
http://blog.equifax.com/credit/how-i-...
March 14, 2014
What to Do With Your Tax Refund
To keep things simple, there should be at least three things you should consider:
1. Add some cushion to your cushion
Nobody likes to plan on things going wrong, but invariably they do. Your car’s transmission will go out or your pet will swallow a golf ball, and you need short term savings to cover these types of emergencies. It isn’t a matter of if they will happen; it is only a matter of when. A good goal is to have at least 3-6 months of your monthly non-discretionary spending in an account separate from your checking account. If you don’t have this much consider using part of your refund to add to your cushion.
2. Pay down some debt
The more debt you have, the more interest someone else is earning on your money. Your ultimate goal is to be debt-free, but just as you didn’t accumulate it overnight, neither will you pay it off overnight. Evaluate your current debt and put some of your refund towards the debt that is charging you the highest interest.
3. Have some fun
After you have put some money into savings and paid down some of your debt, take the rest of your tax refund money and spend it any way you want. Extremes rarely work and I have found that people who have balance in their lives are happier. Wasting all of your money will lead to poverty while saving every last cent can lead to resentment.
So there you have it. Be responsible with most of your tax refund, but have a little fun with the rest of it!
Ecclesiastes 3:13 (NLT) “And people should eat and drink and enjoy the fruits of their labor, for these are gifts from God.”
http://nicoleodell.com/2014/03/do-you...
1. Add some cushion to your cushion
Nobody likes to plan on things going wrong, but invariably they do. Your car’s transmission will go out or your pet will swallow a golf ball, and you need short term savings to cover these types of emergencies. It isn’t a matter of if they will happen; it is only a matter of when. A good goal is to have at least 3-6 months of your monthly non-discretionary spending in an account separate from your checking account. If you don’t have this much consider using part of your refund to add to your cushion.
2. Pay down some debt
The more debt you have, the more interest someone else is earning on your money. Your ultimate goal is to be debt-free, but just as you didn’t accumulate it overnight, neither will you pay it off overnight. Evaluate your current debt and put some of your refund towards the debt that is charging you the highest interest.
3. Have some fun
After you have put some money into savings and paid down some of your debt, take the rest of your tax refund money and spend it any way you want. Extremes rarely work and I have found that people who have balance in their lives are happier. Wasting all of your money will lead to poverty while saving every last cent can lead to resentment.
So there you have it. Be responsible with most of your tax refund, but have a little fun with the rest of it!
Ecclesiastes 3:13 (NLT) “And people should eat and drink and enjoy the fruits of their labor, for these are gifts from God.”
http://nicoleodell.com/2014/03/do-you...
