Personal Finance Blog

Tips And Stories To Help You With Managing Money

You are here: Home / Archives for Money Management

Money Management

Fall Discount Shopping Tips

By

Shopping Early: Is It Really a Smart Thing To Do?

Fall is here! Well, maybe not quite yet, but retailers would have you think otherwise. From the Back-To-School sales being prominently featured in most department stores or home office outlets, one would never guess that it is still mid-summer. It won’t be too long before the Halloween and Thanksgiving displays start popping up- if they haven’t already. Some retailers, such as Target, are even pushing early-bird Christmas shopping sales with their “Black Friday” discounts in mid-July. Some of you may be internally screaming “Enough already!” We barely made it through the Fourth of July- now they’re pushing the upcoming holiday season on us? However, if you aren’t opposed to Christmas shopping mid-summer, you may be able to find some good deals that’ll save you money in the long run.

Buying School Supplies Early- Smart or Unwise?

With all the Back-To-School deals staring you in the face, you may be tempted to start stocking up on supplies for you kids now (much to their chagrin.) While all the sales displays are tempting, it would be wisest to wait. Chances are prices will drop even lower as the school year draws closer. Another reason to wait: although you may be tempted to stock up on binders, paper, pens and pencils for your kids, doing so now might wind up being in vain. Most teachers send out a list of required materials on the first day of school. And while you may be thinking you can’t go wrong with buying the basics, some teachers are particular about the materials their students use. That 1 inch binder you bought over the summer will go to waste when you learn your child’s teacher requires a three ring binder that is approximately 1 ½ inches. Likewise, all that wide-ruled paper will be worthless if your child gets a teacher who specifically wants 8 ½ x 11 inch college ruled notebook paper. So while it may seem like a good idea to stock up now, you’ll be doing yourself and your pocketbook a favor in the long run by waiting.

Is Early Holiday Shopping Worth The Investment?

Another holiday season is upon us, or so the stores would like us to believe. Not far from those Back-To-School displays, many retailers are getting ready for Halloween, Thanksgiving, and in some cases, even Christmas. While the saying goes: “The early bird gets the worm,” in some instances this is not always true. Expert penny-savers can tell you that the best time to buy holiday décor is immediately after the holiday, as this is when everything is marked down at its lowest. So while it may be tempting to run out and stock up on Halloween decorations in July, if you can hold off until November 1st, you’ll wind up saving a lot more money. However, the downside to this shopping method is that once the holiday has passed, not only are all the decorations picked over, the things you do buy will have to go in storage for an entire year. If you’re not opposed to waiting another year before decorating for Halloween, then waiting until the day-after is a great decision. If this doesn’t appeal to you, go ahead and stock up now, before retailers hike up prices as the actual day gets nearer.

Buying early for Christmas, on the other hand, can sometimes be a wise investment, if you are smart about it. All too often, early-bird shoppers are drawn into the stores by deep discount sales, only to end up spending more than they intended when they purchase things that are not on sale. Retailers know that customers are going to be tempted to buy more than just what they came in for, so they use the discount method to lure shoppers in. If you have strong willpower and are able to resist temptation, buying items (such as toys and electronics) as Christmas gifts can be a smart move if you get them while they’re on sale. No matter how hard you try to beat the rush, chances are you’re still going to find yourself in the stores shopping for last-minute Christmas gifts. This sad fact of life is pretty much inevitable.

If you go into the stores with a smart mindset  then you are on the right track to making the most of your shopping dollars.

Don’t forget to yourself some money buy purchasing checks online.

Learning How To Think Like A Millionaire

By

There are three things that you can do with your money. You can save it. You can spend it or you can invest it. How well you do these things may determine whether you will be in the group of 7% of Americans that are millionaires.

learn how to think like a millionaire
Think Like A Millionaire

Many years ago, people would have considered that being a millionaire would be the ultimate in luxury and wealth. Now, for some people, being a millionaire is not even considered enough to do much. Warren Buffet made his first million dollars when he was just 31 years-old. That amount of money is .002% of his current wealth. With rising billionaires like 26 year-old Mark Zuckerberg, founder of Facebook, there seems to be more money to be made than at any other time in recent history.

When you study what unique strategies millionaires use, you may get some ideas to improve your own circumstances. Whether you make $30,000 a year or $1,000,000 a year, improving your skills can help you on the road to becoming more financially secure. Maybe you’ll never be a millionaire or don’t even want to be. You still will need to make strategic financial decisions that will affect how much you enjoy your future life. If you could see your distant future life as well as you can see your life next week, you may decide to live life differently.

Let’s take a look at what millionaires say they do and how they got there.

Paul Lim, a writer for Money magazine, reported some interesting facts from a poll of millionaires. In his article, Millionaires in the Making, he shares with us the answers.

How did you get to be a millionaire?
95% said hard work, 83% investing wisely, 81% by being frugal and 41% by luck.

Do you feel wealthy?
42% said no.

What preparation did they have?
90% are college graduates, 5% have law degrees, 3% went to medical school.

What is the average amount annually invested?
$39,300.

What seems to be the number one thing that millionaires did to get where they are is a lot of hard work. All of us are capable of doing that. We can all become more frugal about what we spend our money on and although we are not all lucky, we can learn to invest wisely.

Did you notice that quite a few people said that even though they were millionaires, they did not feel wealthy? Feeling wealthy is probably one of the things we do have control of. Since your perspective on life can run the gamut of outright depressing thoughts to unrealistic elation, you choose where in that range you want to be. Of course, when the joys of seeing more money coming in and how nice it makes your life, it is easier to think about bigger income numbers than you have thought of before. If you can’t imagine the larger numbers in your income, will you ever improve your standard of living?

Another thing that millionaires do is to habitually save money to invest. The average amount per year that they invest is $39K. If your income level is not even that high, you can work on saving in percentages. Make it a goal to save a certain percentage of money every month. Financial experts advise you to have enough cash to pay your bills for at least six months. Whatever percentage you decide on the important thing is to follow through with your plan each month. Automate that savings if possible.

Some millionaires have also made a practice of living below their means. This falls into the category of budgeting and anyone can follow a budget. You just need to include your savings plan in your budget. It is one thing to have a million dollars sitting in your bank account, but it’s another thing to learn how to best use it.

Millionaires did not become millionaires by working for someone else. Many have started their own businesses. Anyone can start their own business for very little money and if you have a low overhead in your business plan, you can actually accomplish this while working for someone else. Did you know that only 12% of American households own their own business? Paul Lim, reported that the median income for business owners was $497,000 compared to $42,000 for non business owners. Would it be worth your time and effort to start your own business? When you can harness the power of entrepreneurial thoughts and put into action a good business plan, you are on your way to a brighter future.

Realistically speaking there are few people that reach the status of being a millionaire. Learning key money management skills and business building skills can only help you increase your productivity and increase your income. Start today to create a better outlook on life. Do what you can to take your first steps to a new life.

New business owners can save up to 50% off by ordering business checks online.

Medical Bankruptcies

By

Did you know that almost 50% of bankruptcies in the United States are caused by unpaid medical bills? According to statistics, an estimated 1.5 million Americans might file for bankruptcy protection within the year.

Although this is a very discouraging prediction, many still believe that spending too much on things you do not actually need is the very reason why people go bankrupt. According to authorities in credit repair however, this is not the case because most bankruptcies are caused or triggered by medical expenses.

Medical bankruptcy is not unheard of but many Americans do not know that it actually is the trigger for 62% of the total of bankruptcy filings. From 2001 to 2007, US medical bankruptcies went up to almost 50%. This is rather alarming and should be a cause for concern for American families.

Does this have anything to do with how much money you make each year? The answer is yes and no. According to a study done by the American Journal of Medicine reported most of those who file for medical bankruptcy are well educated individuals and even have a house of their own. This is quite surprising because one would expect that those who make enough money will be able to pay for their medical expenses.

Debt collection practices in the United States cause  many families or individuals to file for bankruptcy. Fear of being sued is common place. If you owe a credit card company a certain amount, the chances of you getting sued is slim but with medical bills, you can be sued in a small claims court. Many want to declare themselves as bankrupt to seek protection from lawsuits.

I am aware of several individuals who have suffered nervous breakdowns due to incessant collection activity on credit card bills and medical debt. It is regrettable enough to have the misfortune to fall ill or become unemployed. But to be relentlessly hounded to pay for medical treatment seems, frankly, verging on the immoral. ~ Alan

A declaration of bankruptcy is not necessarily the best solution to your problem. Talking to a lawyer who is an expert in bankruptcy is a good first step. Examining your options without panicking is imperative so that you can find a solution to your medical bill payments.

Make sure you have adequate health insurance cover to protect you from excessive medical bills. If you can’t afford full medical coverage, at least get a policy to protect you in the event of an accident or a long term illness. Some of these policies have large deductibles, but will cover your expenses over $5 – $6 thousand dollars. Don’t leave  yourself unprotected.

Alex Lickerman, MD, states that, “what’s worrisome now is that people are having to choose between saving money and getting necessary help for serious conditions.”

Credit Card Consolidation – Resolve Debts Faster

By

Are you having trouble paying your credit card bills? Are you getting warning notices from your creditors? Are your accounts being turned down to collection agencies? If your answer to all these questions is yes, then you need to do credit card consolidation. Remember that you are not alone. There are millions of people who are facing such credit card debt related problems. You can consolidate your credit card debts in two simple methods. Read on to know about them.

Debt consolidation program

You can go for credit card consolidation with the help of a debt consolidation program. You can enjoy the following benefits if you sign up with a debt consolidation company.

  1. Lower monthly payments: In a debt consolidation program, your debt consultant will negotiate with your creditors and attempt to lower the interest rates on your credit card debts. With lower interest rates, your monthly payments also reduce helping you to pay off your debts in affordable monthly payments.
  2. Single monthly payment: If you enroll in a debt consolidation company, you will have to make single monthly payments. Instead of making multiple payments to multiple creditors, you now just need to make a single monthly payment to the debt consolidation company. They will pay off your creditors as the money in the account starts to accumulate.
  3. Eliminates late fees and penalties: If you have accrued a huge amount of late fees and penalties resulting from late payments, then you can eliminate them with credit card consolidation. You can save a lot of money by taking help of debt consolidation companies.
  4. Rebuilds your credit score: By reducing your debts with a debt consolidation program, you can also rebuild your credit score. Since your debt consultant starts making regular payments to your creditors, you can rebuild your credit score in this way.

Debt consolidation loan

You can also consolidate your credit card debts with a debt consolidation loan. A debt consolidation loan is taken to consolidate all your unsecured debts. Here also you can lower your monthly payments and decrease the interest rate on your debts.

So, if you are overburdened with huge amount of unsecured debts, then consider credit card consolidation. Pay off your debts and lead a stress-free life.

How to Dispute Errors On Your Credit Report

By

Your credit scores play a big role in your life and your ability to borrow money for large purchases at the lowest possible interest rate. Credit scores can determine whether  you can purchase a car or a house at low interest rates or high interest rates. So what can you do about managing your credit scores? Get a copy of your credit report and fix any errors you find.

Disputing credit errors may not be a fun thing to do but it is very important to managing your financial health. Why? Because banks use consumer credit history to determine your eligibility for a loan and to determine what interest rates they will charge you.   If you think you might be applying for a loan, it would be best to monitor your credit scores.

Finding Mistakes On Your Credit Report

Murphy’s law states that “anything that can go wrong, will go wrong.” This is especially true with credit reports. Experian, one of the three main credit bureaus, stores 65 trillion bytes of data. Mistakes are bound to happen. Consumers should remember that inaccuracies found in your credit report can significantly lower your credit score.  Raising your credit scores depends on  getting these mistakes corrected. Remember that disputing errors is free to you.

You will need to get a copy of your credit report from three credit bureaus:  Equifax, Experian, and TransUnion.  You should print a copy of these reports and go through each of them very carefully. If you find mistakes, highlight the data in question. It is important that you ask the credit bureaus to make corrections for you. Write down the credit report number for each of your reports. You will need to reference that number when communicating with the bureaus.

Once you have gone through all three credit reports, write an explanatory letter for each credit bureau. Your written request is generally called a dispute letter. Explain each disputed item clearly and concisely.  Send in your dispute letter with a copy of your credit report  via certified mail, call them or use an online form. Meanwhile, you can contact all lending institutions such as banks and credit card companies to tell them that your credit report is undergoing an investigation and that you have filed a dispute for erroneous information.

Contact Information For The Three Credit Bureaus

Equifax Mailing Address
P.O. Box 740241
Atlanta, GA 30374-0241
1-888-202-4025

TransUnion Mailing Address
2 Baldwin Place
P.O. Box 2000
Chester, PA 19022
1-800-916-8800

Experian Mailing Address
P.O. Box 2104
Allen, TX 75013-2104
1-888-397-3742

What The Bureaus Do

Once the bureaus have gone through your files, they have 30 days to respond to your request. They will send you a letter containing the results of the investigation along with a note that they will remove or erase the inaccurate information in your credit report.

Once that is done, you can also request the bureau to mail correction notices to banks and lending companies they have sent the report to in the last 6 months. If you ask, they can also sent it to places that have requested your credit report in the last two years. The credit bureaus should send  you a copy of your report and they should include the details of the revised information.

In instances where the dispute has not yet been resolved, you can request the bureau to update you on the status of your request. Consumers must remember they cannot remove erroneous information on their own. A dispute must be filed for an investigation to happen.

Recommended Reading

For further information about credit management, you can visit the Federal Trade Commission site where you will find consumer information about credit and loans.

Experian provides the latest >credit analysis news from 90 countries around the world. You’ll find out bits of information like New Yorkers have the most open credit cards and Phoenix has the least.

If you want to limit the credit card offers you receive through the mail, call 1-888-567-8688.

Strengthen your financial well being by educating yourself about managing your credit and making smart financial decisions.