Consumer Finance Tips

One of the most overlooked personal finance tips is for consumers to know what their worth is, that is, their “net worth”.   There is a fairly easy way help you discover what your per minute worth is.  This will enable you to see how much money you might be losing because your personal finance and budgets are disorganized.

Here’s a pretty simple method to calculating your worth, all the way down to the minute.

Your Per Minute Worth Calculation

Yearly income divided by 52 weeks = weekly income
Weekly Income divided by 40 hours (or total hours you work per week) = hourly income
Hourly income divided by 60 = Your Per Minute Worth

Before you begin to overhaul and balance your financial budget, you need to find out your net worth, and your spending habits. This will help assist you later with your budgeting, payoffs, or long-term personal savings. It will also
help in guiding you with such things as your insurance, investments, income tax, retirement, and estate planning.

Your total net worth is your total assets (what you own or already have saved) minus your total liabilities and personal expenses (what you owe out).  It may not be as easy to figure out your per minute net worth and it will take a little more time and persistence to determine this.
Total assets – total personal expenses = Total Net Worth

It’s easiest to do this exercise  when you are paying your bills.  During “bill paying time”, you usually have the information handy to help you calculate your net worth.  So, if it usually takes you an hour to pay your
bills, tack on at least an extra hour this month for this exercise.  You can use the list below as a guide and fill in the blanks with your personal information.  You will be writing in your totals for each line. For instance, if you have two savings accounts, total your balances first and then write in the total next to Savings Account.

ASSETS
Cash Reserve Totals

Certificates of Deposit:
Checking Account:
Credit Union Account:
Money Market Account:
Savings Account:

Investment Totals

401(k):
Bonds:
Mutual Funds:
Stocks:

Personal Totals

Art:
Boat:
Car(s):
Furnishings:
Jewelry:
Other:

Real Estate Totals

Home:
Second Home/Vacation Home:
Other Real Estate:

TOTAL ASSETS: $

LIABILITIES

Short-term Debt Totals

Credit Card Balances:
Current Bills Owed:
Loans w erms of six years or less:
Taxes:

Long-term Debt Totals

Loans w erms of seven years or more:
Mortgage(s):

TOTAL LIBILITIES: $

Congratulations! You did it!
Remember,  Total assets – total personal expenses = Total Net Worth

Now see if your net worth falls under A., B., or C. below, and see how you
can begin to bring some balance back to this area of your life.

A. If your total net worth is half or less of your annual income or you have
a negative number you need to REALLY * OverHaul * and Balance your financial state!

~~ Pay off some/all debt
~~ Cut back on spending
~~ Stop charging
~~ Start a savings plan

B. If your total net worth is more than half your annual income but less
than a few years’ income you need to * OverHaul * and Balance your financial
area.

~~ If you’re 40 or under and own a home, you’re okay for now
~~ If you’re 40 or over and you don’t own a home:
“ Cut back on personal spending
“ Stop charging
“ Reduce debt
“ Increase your personal savings
“ Buy a home before retiring

C. If your total net worth is more than a few years’ of your annual income,
CONGRATULATIONS! Keep doing what you’ve been doing!

The first step to avoiding the troubles of financial debt is to create and maintain a budget.  This will prove to be a big help in getting ahead and managing your finances.

First off, create a list of all your monthly income and also a list of your monthly expenses. When determining income, list all sources including alimony, child support, side jobs, etc. In calculating expenses, be sure to include housing, food, transportation, utilities, entertainment, etc. To gain an accurate reflection of actual expenses, sit down each night and write down expenses, just make sure to save receipts. Determine if your income covers all of your expenses. If the answer is no, then some expenses need to be reduced.

Adjust expenses. If it is a small discrepancy, it may mean reducing some minor expenses like entertainment or cell phone plan. If the deficit is larger, you may need to downsize your vehicle or living arrangements. If your income covers all of your expenses, you still may want to trim some of the excess fat off your spending habits. This can free up extra money for things such as vacations or college funds for your children.

Cut Back on Spending

At first it may seem difficult to limit spending and stick to a budget, however there are a few practical changes that you can make everyday that will cut your spending more than you expect.

Firstly, alter credit card behavior. Start to pay cash whenever possible. This will help you avoid making a purchase unless you actually have the money available. If you decide to make a credit card purchase, be prepared to pay the balance off monthly. This will save a lot of money through avoiding interest charges. If you already have a credit card balance, then transfer to a card with a low interest rate. Also, find a card that does not charge an annual fee.

Another tip is to pack your lunch everyday. All of those lunch hours spent at restaurants will add up. Bringing your own lunch can save you several dollars every day, which will add up over time.

Stop throwing away the Sunday newspaper before skimming through the advertisements. Clip some of those coupons and check out the sales. This may seem old-fashioned or outdated, but the savings are often worth it. Many stores will double or triple the amount of the coupon. This technique can save you up to 20 or 30 dollars each time you head to the food store.

Additionally, refinance. Mortgage rates have been extremely low over the past year. This has been a great opportunity to reduce the monthly house payment significantly. If you are planning to have your house paid off prior to retirement, then you may want to factor this in before refinancing.

Finally, bundle your insurance. Many insurance companies will offer their customers lower rates if they purchase multiple policies. For instance, some people use the same agent for multiple cars, and others combine their cars and house. Always keep in mind that a dollar here and there really begins to add up. Avoid the temptation of thinking that changing your spending habits wouldnít save that much money.

Start Saving your money! Are you are loaded down with bills to pay each month and are wondering how you can begin a savings account for emergencies and other expenses?  In other words, where can you find that extra cash to put away for later? Firstly, when configuring your budget, plan for your savings first. You will grow richer each month if you begin to pay yourself first. Before paying any bills, decide on a set amount that you will pay yourself first, it may be five or ten percent or whatever amount you decide from your paycheck. Then, deposit the amount into a savings account before paying any bills. When you do this at the beginning of the month, your entire paycheck will not suddenly slip through your fingers. If you wait until the end of the month, there may be nothing left to save. Paying yourself first will give you a systematic way to make your money grow.

Another technique you may try for saving money is to empty your extra change into a coffee can or a jar each day. At the end of the month, roll the coins and put them into your savings account. You may be able to save 30 or 40 dollars each month just with your spare change. Remember that good money management is more than just a mathematical formula.  The object of a good budget is to make your money go the farthest in helping you reach your goals, it is not there to force to you to abide by rules. Don’t get discouraged if the budget plan doesn’t work perfectly right away. It may involve some revising and editing until it fits your needs. Then, make sure to review it often, and be sure it is making the best use of every penny! Because we know how helpful those spare pennies can be!

Avoid Spending Pitfalls! With all the advantages that are evident from personal budgeting, it is no wonder that more and more people are relying on them to reduce debts and increase their savings. However, when budgeting your finances you need to be careful to avoid some common pitfalls that often appear.

Credit cards may seem like small pieces of plastic, however they can cause a great deal of trouble for the owners. It is common for people to make unwise purchases, which they would have avoided otherwise, because they had the credit card in their wallet. The best solution for many people is simply to get rid of credit cards and begin paying only by cash, check, or debit cards. You may want to keep one card handy for emergencies, but it is probably best to keep it out of reach, and far away from your wallet.

Another problem with budgeting is impatience. There are financial goals set, but people do not have the patience to complete a savings program. For instance, an individual begins setting aside money for a new car; however, after a few months they discover the car of their dreams. Rather than waiting, they make the purchase. This could pose some serious financial strains. Discipline is a must to prevent impatience from breaking your budget.

Once a person makes a budget, they often fail to adjust it when necessary. A budget is created using a set of expenses and income figures that are liable to change. As these figures do change, it is important that the budget changes to reflect the adjustments.

If executed properly, a personal finance budget will allow a person to simultaneously meet their expenses, place money into savings, and pay back outstanding debts. Therefore, it is in your best interest to create and implement a budget.

Like it or not, we are now in the technology era – the age of information.  It may seem difficult to keep track and manage your finances, but it doesn’t have to be.  This is where good personal finance software comes in.  Everything can now be taken care of on your computer using personal finance software.

Organizing Your Finances with Personal Finance Software

Regardless of your situation, your finances can become complicated. You have to keep up with money coming in and money going out. You have bills and investments as well as multiple bank accounts. Personal finance software makes this much easier by keeping everything organized for you.  Depending on the software you use, it may be able to separate portions of your finances into various categories for you. For example, Quicken financial software can separate your checking accounts from your savings accounts and allows you to track your investments all at the same time.

Being organized will save you time.  Taking a few minutes to input your purchases and paychecks eliminates those hassles associated with staying on top of your finances. Rather than shuffling though bank statements and bills for hours, everything is right there in the financial program. As long as you put each purchase and paycheck into the software, your checkbook will automatically be balanced. Some programs also feature functions that will create a budget for you; which is another time saver.

Do You Know Where Your Money Is? Your Personal Financial Software Does

In order to keep more of the money you make, you must know where it is and where its going.  Personal finance software gives you the power to know where each penny is at a glance. Some will even create reports for you that detail where your money goes each month. This feature will help you locate the leaks in your budget and reduce your expenses every month.

The overview personal finance software gives you is one of its main benefits. It allows you to see and truly assess your financial situation. With this new-found view of your finances, you will be able to effect changes like never before.  If you are having trouble managing your finances, you may want to look into getting personal finance software.

Planning a family budget can be difficult, but it doesn’t have to be.   One frustrating thing is  to see how hard you work for your money, then try to do a budget and ultimately realizing that one wrong purchase, could actually set back the entire plan.  Nowadays, budgeting is practically a necessity, if you want to keep your financial situation in order.

We have to think about family budgeting in a new light.   It can actually be a great way to keep track of your family’s expenses and help you evaluate the things that you spend the most of your family’s money on.

So, what really is a budget?  A budget is a tool for handling your money and finances by controlling the family’s expenditures and spending habits.  Doing this should ensure that there is enough money to pay for bills, and still ensuring that savings are set aside for future expenses – vacations, or children’s education, or even for retirement.

With a budget in place, you should see the benefits of intelligent spending.  Here are some simple simple steps for preparing a family budget.

1.  Gather three months of your pay stubs and get your average monthly earnings.

2.  Get out three months of your monthly bills.  Do this for the fixed expenses like the rent, phone bill, car payments and other loans that come monthly.   Add them up and get the average. Do the same for other expenses like groceries, and credit card bills.

3.  Evaluate the results of your computations.  Looking at your average monthly earnings against your monthly fixed expenses and other monthly expenses, think of some ways to economize.  Cut back on some items that are somehow unnecessary. (going out to eat, movies, etc.)

4.  Knowing the facts of your income and expenses, develop a family budget and try to stick to this monthly budget.

5.  Now that you have a monthly budget, set up a savings account.  Save up by making regular deposits to this account. Even $25 a week can make a big difference at the end of the year.

6.  Keep track of this monthly family budget to make sure  it is working for you.  Try to fine-tune the “rough edges” of this budget as you go along.

7.  Getting hold of  personal budgeting software or a spreadsheet application to keep record of your budget, will make organizing your expenses very easy.

These are some basic steps in developing and implementing an easy to stick to monthly family budget. Of course each family has diverse needs and wants.  You have the freedom to develop your own monthly family budget, depending on your family’s financial background and needs.  No matter how you do it, just focus on the end result, which is building a savings that leads to a bright and financially stable future for your family.

Have you been trying to find out what bad credit finance options were available? Perhaps you’re in the market for a new car or truck, but aren’t sure if you can find a dealer or lender who’ll offer you a bad credit finance?

You shouldn’t worry too much about bad credit finance options, because there are several financing options available regardless of your credit history… some of them charge higher interest rates or require some additional security, but in the end may be just what you’re looking for.

Vehicle financing

If you’re looking for a bad credit finance for a new or used vehicle, your best option is most likely going to be to visit a finance company as opposed to a traditional bank.

Some finance companies are more likely to offer bad credit finance options for vehicles than others, and the financing will usually depend upon the type of vehicle being financed, where the vehicle is being purchased from, and what sort of insurance and driving record you have.

Other factors that will be taken into consideration include your annual and monthly income, any cosigners that you might have for the loan, and any recommendations or referrals that you might have.

Home financing

Finding someone to offer you a bad credit finance for a house or other real estate can sometimes be tricky, but generally real estate shouldn’t be too difficult to finance.

Major factors in getting a mortgage lender to approve you for bad credit finance options include your income, any insurance that you will purchase for the house or real estate, the amount of a down payment that you’re willing to offer, and any references of former landlords that you can offer.

Mortgage lenders for bad credit finance loans can be found online, at finance companies, and at some real estate and property management services.

Other financing

Should you be seeking bad credit finance options for other items (such as collectibles or electronics), you might find your search to be a little more difficult.

Smaller and less valuable items are often harder to repossess and find buyers for than vehicles and real estate, so many finance companies are hesitant to lend money to people with bad credit in order to purchase these items. Instead of financing, you might want to consider other venues for bad credit loans (such as auto title loans and the like) to get you the money that you need for your purchases.

Some lenders will offer financing for these items, though, but the only way to find out is to see for yourself. Should you be rejected, asking for a reference as to where to find financing might point you in the right direction.

You may freely reprint this article provided the following author’s biography (including the live URL link) remains intact:

About the Author

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.

Written by: John Mussi

You’ve worked hard all day and come home at night, only to discover that you can’t get comfortable in your own bed. You toss and you turn for well over three hours. As 3a.m. approaches, you finally go to sleep but the alarm sounds all too quickly at 6 a.m. It’s time for you to go to work. Day two comes and you’re off again to the usual rat race. You repeat the same pattern once you get home. Later that night you lay in bed, thinking how you’re going to pay all of these bills. Despite your best efforts on the job, including overtime, it doesn’t seem to be enough. What can you do? Who can you to turn to?

Does this sound like you? Are you having sleepless nights because of your finances? Here are the top five reasons I have found why people get into debt:

1) Try to live beyond their means. Keep up with the Joneses. 2) Lost job and bills pile up 3) Have never been taught money management 4) Divorcing and the other party charged up cards in the process splitting up 5) Impulse Shopping

I too was a victim. Not from just one, but two of these debt catalysts. My husband equally had financial woes, his was still on this list. Being in debt has a way of having a hold on you and causes you not to think clearly. People in debt tend to operate out of fear – for example they ignore phone calls because it might be a collection agency on the other end. How many calls have they missed? Or perhaps, they write a check in the hopes that it will clear the bank; knowing full well they spent the money on luxuries and other needless excesses that have caused the bank account to have insufficient funds.

If any of this sounds like you or someone you know, assure them they can get out of debt without filing bankruptcy. They have to want help and not let pride or embarrassment get in their way of being helped.

At Journey To Wholeness, we work with people who want help getting their finances in order. There is no charge for our help. Why would you pay someone to help you get out of debt?
About the Author

Dr. Taffy Wagner is the author of Debt Dilemma. Debt Dilemma is her own personal story of how she got into debt and was able to get out without filing bankruptcy. She will be launching a national marketing campaign on October 18, 2005. View her website at http://www.paidoff.net/SpecialPromo.html for further details.

Written by: Taffy Wagner

Are Your Finances Prepared For Divorce?

Life is hard and nothing is more testing and straining than going through a divorce. A divorce can indeed be a stressful time without the added pressures on ones finances. Besides emotional erosion, a divorce is also known to be a costly event in a person’s life; however provisions can be made by both parties to ensure that the financial strain incurred through divorce is made to be an equally-shared responsibility.

The best way to ensure that your divorce does not put a strain on your finances is to be realistic. What are the objectives or goals to be reached financially? People often are so used to sharing their finances when they are married that the prospect of divorce leaves them feeling confused as to what they own as an individual.

Initially couples have to embrace the fact that they are individuals and so are their finances. They are individual finances. By calculating what each person is worth or has contributed to the relationship often helps solve the problem.

The thing to do is to get help from a professional finance advisor who can aid you in this. By doing this, you are being realistic about the financial implications of a divorce. Lawyer fees can be more expensive than expected if the divorce drags out endlessly because as a couple you cannot reach an agreement. If you don’t want to do this for your partner as a gesture of decency, then at least do it for your own financial future.

The tragic thing about this whole ordeal is that couples are often so bitter that they cannot see through their own disappointment. Instead they opt for a full on war with each other and forget what this war costs them in terms of personal finance. Maybe people should learn to more realistic: once it is over it is over. Pack your bags and move on; save yourself from the bills that will come on after, leaving you in a financial mess that might take too long to sort out.

For more information Toronto Debt Consolidation
About the Author

Toronto Debt Consolidation

Written by: Brad J. Tamitnowson