Smarter Finances - Credit Cards, Loans, Mortgages, Investments » Personal Finance

Cutting Household Bills

drew — Thu, 05 Jun 2008 07:42:47 +0000

Are you looking for a few ways to cut household bills? If so, you are in luck. There are many ways that you can do this with a high level of success. Of course, not everybody is in the same position so something that works for you may not be the best idea for somebody else. The way that you go about cutting your household bills has a lot to do with the way that you live, as well as how many people reside in the same home as you. As you can imagine, it can be difficult to cut certain household bills when you have several children at home.

Here are three tips if you want to cut household bills sooner rather than later:

1. Determine a budget and then work within the money that you have available. If you set your budget below the usual amount of your household bills, you will be forced into saving money one way or the next. If the money is not available you cannot spend it.

2. Have a meeting with your family to determine which household bills could be cut back the easiest. For instance, you may be able to save on the grocery bill if your kids agree to cut out certain foods. By working with your family they will see where you are coming from instead of making you out to be the bad guy.

3. Tally your household bills at the end of each month. This will allow you to see where your money is going, as well as how much progress you are making from month to month. When you see that you are making progress you will be more determined than ever before to continue moving in the right direction.

With these three tips, you should be able to cut your household bills this month!

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You have rights even when you are acutely indebted

drew — Fri, 30 May 2008 08:40:26 +0000

When you are acutely indebted, you tend to be depressed and defensive. Since you consider yourself guilty, you would tend to accept more that your share of abuse. The fact that you would be faced with all types of collect agents would make you feel vulnerable and defenseless. If you are experiencing this type of situation, cheer up. You should know that you have rights that can protect even when you are swamped by snowballing debts.

Stand Up For Your Rights And Face The Situation Squarely

While it is true that you should be careful about how you manage your finances and avoid reaching a situation where you are unable to pay your bills, you need to keep in mind that you are protected by the law against unnecessary harassment. The first step in this direction would be to gather information on these rights and what you should do when you are faced with what seems a no-win situation.

Here are some of the aspects that would help you:

You are protected against harassment – collecting agencies engage agents to recover their money and these agents are meant to meet you and discuss possible means to get the loan repaid. They are not meant to harass you in any way. Be aware that any type of threatening gesture whether it is in direct or implied is infringing upon your rights. The law dictates that the agent cannot make it known at your work place or residence area that you have an outstanding debt; neither can he or she use abusive language, violence and intimidating behavior.
Misrepresentation – the debt collector is not permitted by law to use false identity (such a law enforcement officer, or posing as Government representatives, etc) in order to intimidate you into making a payment. They cannot push you into signing any document by misrepresenting the true facts.
Abuse of your contact place – the debt collector should not visit your place of work unless he or she has obtained your express permission for it. Their calls too, should be within the limits of a normal day, i.e. not after 10 PM or earlier than 8 AM since this would amount to harassment. If the debt collector uses a third party for contacting you, the same law applies to them as well.
Right ID – the debt collector should announce to you that they are debt collectors and not engage you in discussion under false pretences to “corner” you into giving additional information.
Legal action threats – be aware that no debt collector can claim than they can have you arrested, have the salary attached to the financial institution or seize your property unless the pre-agreed terms state so. If such action takes place, you would be entitled to legal protection.

These are only some of the rights that you are entitled to as listed by the Fair Debt Collection Practices (FDCPA). Do not despair when you are finding yourself indebted beyond your means. Take steps to remedy the situation at the earliest; in the meantime be aware that you have rights that you can exercise.

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How To Cut Your Gasoline Costs In Half

drew — Fri, 23 May 2008 16:17:17 +0000

Consumers are getting crushed by the soaring cost of gasoline here in the US. Prices are increasing almost daily and people’s budgets are stretched to the limit. However, there are a number of things that you can do to combat these wicked price increases. Following are some proven techniques that can reduce your gasoline costs by 50%.

1. Use regular gas instead of the premium blend if your owner’s manual permits it. There is thirty to fifty cent difference between the cost of regular and premium gasoline. And if your car is designed to run on regular gas, there is no advantage in filling up with premium. Of course, if your car requires premium, you should never use regular as it may cause some damage to your engine.

2. Keep your engine well maintained. A dirty air filter can reduce your gas mileage by as much as 40%. Change the air filter according to the manufacturer’s recommendations. However, if you live in an area that is prone to dust and dirt in the air, you should change the air filter more frequently.

3. Ensure that your tires are inflated to the proper pressure. Tires that are over or under inflated can reduce your gas mileage by a considerable amount. Use a tire gauge to check your pressure. Do not depend on the guage that is attached to the air hose where you get air. They are frequently inaccurate.

4. Slow down! By far the primary cause of most poor mileage is speed. As far as gas mileage goes; speed kills! Traveling at 75 miles per hour as opposed to 55 mph can reduce your gasoline mileage by a whopping 25%. So the next time you are late for an appointment, call them and tell them that you can’t afford to get there on time.

5. Keep your car well maintained mechanically. Worn out spark plugs not only rob your car’s gas mileage and power, it’s stealing the money right out of your pocket. A six cylinder car that has one fouled spark plug is wasting 17% of the gas you buy.

Following the 5 easy tips above, you can easily reduce your gasoline costs by 50%. Check out my newest ebook for tons of other details on how to cut expenses and put money in your pocket!

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Chart your Expenses for Free with the help of your Computer

drew — Fri, 23 May 2008 13:50:43 +0000

In order to keep your personal finances in check, you must make sure that you chart your expenses month in and month out. The more in tune you are with the money you spend the better off you will be when it comes to saving and increasing your net worth. Unfortunately, many people do not have the skills and/or know how to chart their expenses. If this sounds like you, it is time to fire up your computer. There are many ways that you can chart your expenses with nothing more than a computer and some hard work.

First things first, you need to decide if you want to pay for a software program or set up a system free of cost. If you are new to charting your expenses or simply want to save money, you may want to skip on buying software for now. You can use a spreadsheet program, such as Microsoft Excel, for free.

When setting up your spreadsheet, accuracy is very important. You need to make sure that you are including all of your income, as well as every last expense that you regularly incur. To go along with this, you may also want to add a “miscellaneous” category so that you can account for expenses that are unexpected.

If you have never charted your expenses in the past, there is a chance that you will run into some issues from time to time; this is bound to happen. With that being said, you will quickly become used to the numbers that you are inputting.

Overall, using your computer to keep track of expenses is a great idea. You can save yourself a lot of time and money by relying on a simple spreadsheet as opposed to the “old style” of paper and pencil.

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Do you know where your money is going?

drew — Fri, 23 May 2008 13:36:29 +0000

Believe it or not, many consumers have no idea what they spend their money on. This is not a habit that you want to get into. In fact, you should know exactly where your money is, and where it goes each month. If you do not, you could find yourself in a situation where you are not able to save nearly as much money as you were hoping.

The question is: how are you going to successfully keep track of all your money? One of the first things that you need to do is put together a budget. This should include details on how much money you earn each month, as well as how much you spend. By doing this, you will have a concrete answer as to exactly where your funds are disappearing to.

Keep in mind that your budget can and will change over time. While your mortgage and car payment may be a fixed number, other expenses such as groceries and utility bills will fluctuate. Make sure that you leave enough money in your budget to make up for any increases that may take you by surprise.

If keeping track of your money on paper is too difficult, you may want to look into one of the many software programs that can help you. For those who do not want to spend any money, setting up a budget with a free program such as Microsoft Excel is easy enough.

The key to knowing where your money is going is to keep track of every purchase that you make. As long as you keep a close watch on your budget and balance your checkbook when you make a purchase, you should always know where your money is being spent. From there, it is much easier to save and prosper!

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Ten tips for dealing with debt

drew — Fri, 23 May 2008 12:50:05 +0000

Debt, it’s a four letter word for Americans. It is one of the biggest factors that can hold up your future. It will hold you up from buying a house, a car, and in some cases, it will prevent you from getting a job. There are some basic things to understand about debt, and what you can do to both prevent it from happening, and to eliminate it once you are already in debt.

1. The number one debt for Americans is Credit Card debt
Most American households have more than one member who holds a credit card. Most households will have at least one credit card, and the average debt on that card is over $9,000! Average interest rates are anywhere from the mid teens to the high teens at any time, obviously this is one debt you want to work to avoid.

2. There is such a thing as good debt
When you borrow for a home, or for a car, this can be considered good debt. You have to work to get the best rates, and be aware to not borrow more than you can afford. This is good debt because education can help you attain a much higher paying job, and owning a home is a great investment, as most of the time you will see your home gain value.

3. Most debt is bad.
As was mentioned, credit card debt is one that you want to avoid. Try not to use a credit card for things that are quickly consumed, and then you are finished. Things like meals, short trips, and paying overdue bills are all ways to fall into a quick debt trap. Save a little bit of cash each month for these things, so that you can pay your bills in full and not have to worry. If there is an item you really want, you can save cash for it, then use your credit card, which will allow you to keep up with the monthly payments without and hang-ups.

4. Control what comes out of that wallet!
People do all sorts of buying without ever even thinking about it. One good way is to write down everything you spend in a month, so that you can see it for yourself. You can then cut out items or services you don’t need, and use that money to save, or put it towards any debts you may have accrued.

5. Make your highest interest rate debts your number one priority
The most efficient way to get out of debt is to pay down the balances of the debts that are charging the most interest. The key to doing this though, is not falling behind on your other debts. Once your highest interest debt is paid down, move down the list to the debt with the next highest interest rate.

6. Avoid paying the minimum
If you only pay the minimum on your credit card debt, you will be barely covering the interest you have accrued for the month, and nothing will get put towards the actual principal. Paying this way would take years to pay off your full balance, and you will most likely spend much more that the original amount you owed.

7. Be careful what and where you borrow from
As easy as it is to borrow against the equity in your home, or pull money out of that 401(k) you should try and avoid it at all costs. Pulling money out will kill you with fee’s and in the long run may prevent you from meeting your retirement investing goals.

8. Always expect the unexpected.
Build yourself a little cash safety net. Save up a few months worth of living expenses in case of a sudden emergency. Without this, things like a broken water heater, a blown motor in your car or the need for a new computer will put a major dent in your wallet. These types of things that most people put on credit cards are big time contributors to debt.

9. Don’t rush to pay off your mortgage
Don’t put all you’re hard earned cash into trying to pay off your mortgage when you have other debts sitting around. Mortgages usually have lower interest rates than a credit card or other debts, and paying your normal monthly payment is fine, unless you can afford to pay all your debt for the month, and still have enough to make an extra mortgage payment.

10. Jump on your debt before your debt can jump on you
If you can’t manage the debts you currently have, then get help. There are many debt counseling and consolidation companies that can assist you in managing your money better and making it work for you, not against you.

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