Author Archives: morgan

Simple Personal Finance Management Tips

It is important that we start saving for a rainy day as early and as soon as possible. Personal finance management is essential in today’s day. In today’s capitalist society most people don’t think twice about taking loans to buy unnecessary and expensive things. The recession however has woken up most people and scared them into learning to manage their finances. Because of the daunting nature of this task or because of insufficient knowledge most people never know how to effectively manage their finances.

Getting started

There are many steps to follow during personal finance management. These are some of the most essential ones you need to know to get you started.

Prepare your Budget

Preparing a budget will help you to curb overspending. Total your net income from all sources like work salary, any mutual funds, alimony, etc. Prepare a list of all your monthly expenditures and how much it is going to cost. These would include your bills, shopping and household budget, insurance premiums, etc. This is a great way to learn to adjust your expenses and create an estimate of your actual monthly expenses.

Saving

After preparing a budget the next thing you need to do is save money. Preparing a budget gives you an idea of where you overspend. Depending on your income, open a saving account and contribute a suitable percentage of it towards your account. This account should be used only in the case of emergencies.

Invest

Investing is a great way to earn a little extra income. The best place to invest is in the mutual fund of a reputed company. There is minimum risk involved when investing in mutual funds compared to other stocks. Further more you can leave the worrying caused as a result of volatile stock markets to experienced and professional fund managers.

Insure

Insurance is a great way to secure your future. It also reduces the risk of needing to empty out your saving account in the case of an emergency. You must at least take out insurance for your house, car and life. Choose a reputable company whose premium rates suit your income to avoid defaulting and wasting your money.

Tax Planning and Retirement Planning

Plan your tax so as to minimize the amount of your taxes. Reducing your income will bring down your taxable income. An easy way to do this is to contribute towards a retirement plan at work. As a result you can also plan for your retirement while planning your tax. You can also deduct your taxable income by donating to charity. State tax and mortgage interest will also deduct your taxable income. Having more dependents or getting married is another way to deduct your taxable income. You can also get tax credits for adopting children or college expenses.

Personal finance management gets more complicate every year; these simple tips are all you need to get started.

The Best Way to Make Sure Your Savings is Growing

When you are trying to set up a budget for your family or for yourself and you have debts, then you really have to know how managing finances can help you save more money and pay off your debts. There are many things you have to include in your budget and there are many ways you can go about making sure you are set when it comes to your budget. This is an important thing to understand because your finances are very important.

  1. Make sure you include all your expenses

Most people forget to include everything in their budget as far as their expenses and this is what throws them off when they end up having to pay for something that they did not budget for. You have to include yearly expenses and expenses that you don’t have to pay every month. This is very important to your budget.

  1. Always include some savings

Even if it is only a few dollars a week or month you need to include some savings when you are managing finances. This is very important to your overall budget and financial picture for the future. You may need this savings for something in the future that will be unexpected and without it you could be in a very bad financial spot. Savings can keep you from gaining more debt as well.

  1. Be realistic

Most people also struggle with setting up a realistic budget. If you get paid a couple times a month and you know exactly what you are going to make, then your budget should be very easy, but do not forget to leave extra room and money for entertainment. A good way to get a picture of what you really spend is to go ahead and track each penny you spend for a full month or two.

Tips For Auto Financing

If you have never purchased a car from a dealership, or have previously purchased but never been sure how the finance process actually work, here are some helpful tips. Financing has become the most common method of purchasing a new (or used) vehicle. The steep rise in auto prices makes it difficult for most consumers to simply lay cash on the barrelhead. Therefore, it makes sense to know on what criteria your loan will be based.

o Your Credit Score – Few things are as integral to your auto loan as your credit score. This will dictate what interest rate you are offered, the length of auto loan available to you and much more. In fact, your credit score is the largest contributing factor to the entire loan process. If you do not know what your credit score is, the best choice is to get a free copy of your credit report from one of the credit bureaus (one from all three is a better option), though you’ll have to pay for the actual score.

o Your Down Payment – The amount of money that you use as a down payment is a vital part of what determines your loan payments. The larger your down payment is, the lower the amount of money that you will have to finance. This helps you reduce your monthly payments and, when combined with a strong credit score, can help you receive the deal that you want.

o The Market – While your credit score plays a role in the interest rate that you receive, the current market conditions also play a large part. Many consumers are unaware of what the current market conditions are and, thus, have no way of knowing if they are receiving the best interest rate or not. Interest rates fluctuate based on the economy; knowing what those rates are will help you attain the best deal possible.

o The Source of Your Auto Loan – Many consumers mistakenly believe that it is easier to obtain financing through the dealership. While it may be more convenient, it is certainly not the only, or even best, method. Local banks and credit unions can offer you a viable option, as can online lenders. By having your financing already in place, you can avoid the expensive hassle of dealer financing and get a better deal on your new vehicle.

o Your Trade In – The value of your trade-in vehicle is an important part of the process. The more your vehicle is worth (to the dealer, not market price), the more money you will receive for your vehicle. Never think that you will receive fair market value for a trade-in. Dealers will pay only what they feel the vehicle is worth. This value includes how easily they can sell the car (demand) and how many similar cars they currently have (stock).

By ensuring that you know these areas of information, you will be able to ensure that you remain in control during the purchase process, as well as ensure that you pay the lowest price for that new car.

How to Manage Your Finance During Recession

Managing your finances is one of the most difficult jobs for any person. And when it comes to managing your finance during recession, you really need to take some helpful tips from a financial adviser. But this will also be a costly task as the financial adviser will also charge his fees. Here’s an outlook into the matter. As you proceed reading this article, you will be able to gather some important useful tips on how to manage your finance when you are falling into the lap of recession.

Before we start to discuss where and where not to utilize your available finance during recession, let’s get to know what a recession actually means. Reduction in an economy’s GDP or gross domestic product for a period of continuous three quarters is referred to as recession. However, NBER, National Bureau of Economic Research formally defines a recession as three consecutive quarters of falling real gross domestic product. Surviving during recession is not an easy task. Many people who were earlier making it from paycheck to paycheck are now held with no or little money. Generally, recession lasts for about 6 to 18 months. But this duration may somehow seem to be a longer one as people go on with lesser money in hand.

We present to you some helpful tips on how to manage your finance during a recession;
1. Make it a habit to check your bank account on a regular basis. Maintain a statement of coming in and going out of cash. Always try to make the payments on time as this will not increase the interest rates on them. Keep an up to date cash flow forecast.

  1. Try to reduce your daily expenses as much as you can. This involves the calculation of every single penny being spent on buying the daily needs. Stick to necessities. Make a clear account of each single penny being spent. Each single penny is essential during the recession times for which you will appraise yourself later.
  2. Credit cards increase debts. As long as you carry a credit card with yourself, you are sure to spend on unnecessary things which will ultimately increase your debts. So try as much possible to keep away your credit cards.
  3. Avoid borrowing money from anyone. As long as you continue to borrow money, you keep yourself sinking in to the weird situation of recession. This way you can never come out of recession with a stable financial standing.
  4. Continue to pay the premiums. When you continue paying the premiums, if any, you are in a way securing your money. This is because this premium amount will come back to you and that too as a huge amount. Also if you pay the premium which is going from a long time then you save those premium amounts which have already been paid in the past. And if you discontinue paying the premiums then you may lose the amount which has already been paid.
  5. You should look for extra sources of income other than your ongoing one. This is how you can increase your income. No matter if extra income comes to you in smaller amounts, but do keep looking for options to generate it. For at least, something is better than nothing. Do not waste time rather spend it on earning extra for yourself. It would certainly help you in longer run.

You have to, at any cost manage your finance during recession as there is no other way getting out of it. Managing your finance and earning extra income seems to be the only mantra to keep yourself going during recession.

Saving Money

Money Saving Tips – How to Manage Money

What should you do with your hard earned cash? There are many choices we face on a daily basis that can create confusion and can point us in in a different direction at any time. There are many things that we should and shouldn’t do with regards to our finances and how to manage money. Let’s go through some of the more important ways to start saving and put your money where it belongs.

  1. Understanding when you should stop

The issue most people face when knowing how to manage money is knowing when you should stop. This may be a somewhat vague statement but I’ll help clear that up. Understanding when you should stop can pertain to all kinds of different parts of your finances. You should know when to prevent buying things on each day, week or month and that all comes down to budgeting. You must understand when to stop investing in each part of your financial portfolio and start in another. You must understand when it is time to stop using the credit card and begin to buy with real money. These ‘stops’ are of vital importance to our financial success and there are many more. Every situation is unique and you need to go through some of the trouble areas in your financial life to discover where you need to stop. It could be you are paying too much for for your telephone and web service. You need to know when enough is enough and put an end to cash wasting services or purchases. The amount of money you will save if you know when to the draw the line will amaze you.

  1. Eliminate Impulse Buys

All stores rely on impulse purchases more than any other item sold. They will draw you in with a great deal on several things in their flyer. You end up getting those items up but while you shop you purchase several other things that were not on the list. All of us can be sucked into the impulse buys when we go to the mall, convenience stores or the grocery store. Often times we don’t know we’ve made an impulse buy. If you chew gum, have an issue of ‘Cosmo’ magazine on the coffee table or have fuzzy dice dangling from your car mirror it’s likely you have made an impulse buy. We make impulse buys on an almost daily basis. Those purchases empty our wallet and savings account of a lot of cash. Here’s an example of how much you can spend: If you pack of breath mints {per|each|every| week you are spending about $78 every year. Throw in one magazine each week, a Starbucks coffee every day, a chocolate bar every two weeks etc. It’s not hard to do the math you’ll figure out that we spend thousands of bucks each year on these items that we didn’t plan on buying. If you avoid them you’ll easily save thousands of dollars for your retirement plus you will know the basics of how to manage money.

  1. Plan Ahead

Planning is key when dealing with your finances. If we go around without putting any thought into where our money is going there is a high likelihood that it will all be gone after a couple of weeks. They key tofor solid financial planning is planning ahead.

My Step by Step Advice:

1st: Know how much every guaranteed monthly expenses are and place aside that sum from your paycheck. Those items include electricity, cable, car payment etc.

2nd: Set aside $25 (or more) every week that will go into your emergency fund.

3rd: Make a meal plan and then do your weekly grocery shopping. If you have all the food you need in the house it will prevent you from going to the corner store to buy a loaf of bread for $4.

4th: Budget no more than 10% of your paycheck for weekly spending. If you spend that 10% by Monday then you don’t get any more. Don’t dip into next weeks budget and don’t let last weeks budget roll over into the current week.

5th: Make a financial goal at least once a week. If you want to go south this March, create a goal to make that dream come true. If you want to own a house next year, start making that goal happen. If you want to save an extra $20 a week, figure out a way to make it happen. This will show you how to manage money and get you on the right track to your financial freedom.

Should you go out and spend your money with reckless abandon or save wisely? I’m pretty sure you know the answer to that question. Managing money isn’t as hard as you think and can be easy to save for the retirement, house or vacation you’ve always dreamed about. You simply need to understand when enough is enough when it comes to spending. You also need to stop impulse purchases. The last thing is good financial planning. If you make an honest effort at making those 3 things happen, you will be close to knowing how to manage money better.

How to Simplify Inventory Management Financing

In companies, one of the biggest challenges that need to be taken care of is inventory management. When commodities are being exchanged back and forth, there is a necessity to keep track of these exchanges so that costs can be contained. Unfortunately, the traditional methods of inventory management are not good enough and there is a need to identify newer ways in which one can get this job done. This is where inventory management software can be of assistance. But, if the software is too expensive, you might want to know ways in which you can still put it to use.

Evaluate your financing options

One of the simplest solutions would be to go in for inventory management financing. In this manner, you can simply have the software financed for you according to a plan that suits your budget. This is the option that most companies are making use of today because it is a practical and affordable solution for the masses. The simplicity is what makes it so attractive and worthy of pursuing. In fact, software financing is quite a big phenomenon today, and many small to medium sized business have embraced.

Implementing your requirements in stages

Once you have decided to go in for the option to finance software, the next challenge that you will have to tackle is the implementation part of it. This is something that you should be able to do effortlessly, if you go to a reputed vendor for your financing needs. Hence, get a good estimate of what you might require and then decide what you might end, eventually pursuing it till you inventory is better managed and organized.

Deciding your finance amounts

In addition to financing, one can always go in for software leasing if they are not sure about the requirements of the software. Hence, if you feel that the amount of finance assistance that you require is too high; go in for a lease where you can try out inventory management software to see if it has worthwhile benefits. It is very rare that you won’t find it to be beneficial, as it is quite beneficial in most of the cases.

How to Manage Money and Make it Grow

fc 3

Christmas is right around the bend and you have a couple things on your mind. How am I going to avoid dinner at the in-laws and how am I going to pay off my credit card this January? Over the next couple of weeks I will go through 12 ideas for holiday debt relief. Each one will teach you bit by bit how to manage money and create a debt free!

HOLIDAY DEBT TIP 1: Don’t Add More Debt

Did you know that every $50 you tack on to your credit card balance will add another month to the time you can to pay it off. Don’t worry, the holiday’s aren’t canceled! You don’t have to tell the kids that Santa isn’t coming this year. You have to keep tabs on your budget. Right now you should really sit down and calculate the numbers. Decide the things you must have and what you can afford to lose. Do you really need a stocking stuffer for your pet iguana or a brand new outfit to show off for Christmas day? Figure out what is truly important and what can be missed. You may amaze yourself with how much you can actually save. Christmas is a wonderful time to learn how to manage money.

HOLIDAY DEBT TIP 2: Make a List and Check it Twice

It might be easy to overlook your finances during this busy holiday time but you must remember the big picture. It’s time to set goals and follow through with them.

Goal #1: Start an Emergency Fund – Any amount helps. Even if you can you spare $10 or $25 each week it’s time to start now and it will help. The goal is to have at least $1000 saved up and the sooner the better.

Goal #2: Start Debt Stacking – those credit card bills are starting to arrive in the mail right about now. This is a great time to start snowballing your debt. Review my previous posts for debt stacking tips.

Goal #3: Cut the Cost of Living – There are all sorts of ways to reduce those expenses. Turn down the heat a couple notches when you are at work or when you are about to go to bed. Turn off all lights when you aren’t in a room. Check any windows or door ways where hot air may be seeping out and seal it up. The amount of money you will save will amaze you.

Goal #4: Clip Coupons – All retailers want your hard earned cash. Look on the Internet or in the newspaper for bargains. If you shop around for the best deals you will save lots on your Christmas purchases.

You should create 6 more personalized goals for yourself. If you are having trouble find some resources on this blog that will help. If you have some questions ask me and I will try to help!

For my next post I have created another delightful song you can sing around the Christmas tree with family and friends and I have created some more tips on how to manage money and remain debt free this holiday season/Christmas!

Personal Finance

fc 1

Minding your finances doesn’t have to stressful and overwhelming. There are many people right now that are worrying themselves right into the area of heart attacks because of money, or rather the lack of it. No one needs to let themselves get to this point when there are personal finance tips to follow that are simple and will leave you able to sleep at night.

The biggest tip to follow for your personal finances is to learn how to be frugal. This is especially true for those young people out there that are just stepping into the wig world of money. Don’t spend on unnecessary items. If you see something that you want, don’t spend to get it right then. Make yourself go home and think about it. Chances are you will end up making the decision not to buy it.

In addition to frugality, you should make a budget and live by it to the letter. Sit down and write out what you must pay each month to live, as far as rent and living expenses. Don’t add in things like a shopping trip with your friends at the mall each week or that little gift for yourself because you worked hard all week. These kinds of things are wasting precious money that you could be saving up to have on a rainy day.

Avoid unnecessary debt like the plague. Going into debt means that you are going to lose more money every month to interest and other fees related to that debt. This is money that you will never have the chance to even squander. You will never see those dollars except as they go out the door and into the hands of someone else.

When you make the guidelines for your budget, make it a point to turn it out where you are going to be spending a lot less than you are earning. This is going to leave money left over to save. Make sure that you also pay your bills on time so you can save yourself from late fees as well. These may seem like little things, but they add to being a whole lot later on. Personal finance tips can be sticky and hard to follow sometimes, but to become financially stable, you must learn early on to make sacrifices.

Find ways to make more money. This may come in the form of getting a degree or it may be that you can go higher in the job you have. Education is one of the essential keys to success, especially when it comes to earning a high salary.

When you get paid, you should take at least 10% right off the top for a savings account. This way, in the event that you lose your job or you have something happen to you that causes you not to be able to work, you are going to have some money to go on until you change course and get resettled. A lot of people have hit rock bottom and never made it back up because of situations like this happening and they didn’t have a savings to depend on. These personal finance tips will help to become a better money manager.

How To Manage Personal Finances

Knowing how to manage personal finances is the cornerstone of being able to successfully build wealth. Accordingly, how to manage personal finances has never been as crucial a subject as it is right now! It has been four years since the start of the “Great Recession” and the ensuing jobless recovery. The housing market remains depressed while home foreclosures and short sales continue at a distressing rate.

How Are You Doing?

If you were a true member of the “wealthy class” in America at the time of economic tsunami and not overly burdened with debt or other forms of exposure to financial loss, you are probably still relatively comfortable and perhaps even profiting from the current economic situation.

If you and yours resided within any level of the “Great American Middle Class”, the odds are better than even that you’re experiencing some degree of financial hardship. The economy has taken a long-term change for the worse, presenting you with the challenge to survive and overcome.

The weak financial foundations of an alarming number of Americans were exposed by the meltdown of “08-09”. Too many individuals/households, some with excellent incomes, were living on the bubble while not employing sound principles on how to manage personal finances.

Those who were experiencing the most financial distress may have also suffered through bankruptcy and/or home foreclosure. Now, as we wrestle with the post collapse “New Economy”, what will it take for working class / middle class Americans to regain viable financial status and direction? What should we be doing now?

Seek Information About Managing Your Personal Finances

It is probably accurate to state that most adults are intuitively aware of timeless maxims such as, “do not live beyond your means” and “save for a rainy day”. The problem is that too many people simply don’t follow this advice. In the New Economy, Americans will have to seek information on how to manage personal finances and acquire the discipline to apply it. In addition to becoming better money managers, we must also find ways to earn more income in an environment of fewer jobs and stagnant salaries/wages

Some of the elements comprising the “weak financial foundations” mentioned above are:

  • Excessive materialism / impulsive buying
  • Lack of savings
  • Excessive use of “toxic” debt such as credit cards
  • Living from paycheck to paycheck
  • Not developing spending & savings plans based on budgeting finances
  • Depending on too few sources of income

Commit To Your Own Rescue

Focus on three areas.

  1. Address bad habits and commit to learning how to become much better at managing your personal finances at all levels. Intelligently manage your use of credit (especially credit cards) and learn to use budgeting finances as the basis for controlling spending and anchoring your overall long-range personal financial plan.
  2. Regardless of your background, education or experience, find ways to generate income from multiple sources. It can be done.
  3. Gain a working knowledge of how to invest, which, along with saving money will create wealth for your future and potentially that of your descendants. There are plenty of books, courses and online resources to help you. If you seek the services of a financial professional, make sure that they are certified and do not have a financial interest in any investment products that they may present to you.

How to Manage Money

When I was young I always found it interesting how much my dad understood money and personal finances. Even up to today when he is getting closer to his long awaited retirement, he understands a great deal more than nearly every individual that I have met. My dad is still planning and evaluating his portfolio, continually changing and always adjusting. He always makes regular contributions to his retirement plan and never misses or is late with paying his bills. He knows how to manage money.

A little bit of me thinks that my interest in proper money management stems from his keen interest for it. When I was a child I would continually ask questions about his past. I asked him how he knew when to change certain investments from medium risk to highest risk and vise versa. Before the stock crash in 1987 he completely avoided a loss by adjusting his his entire investment portfolio a 5 months before everything went downhill. He did so in early 2000 and again before this most recent crash. When thousands of people lost half of their savings and forced to sell their homes he managed to protect his entire portfolio and eliminate his mortgage in 15 years.

Is it a fluke that my dad has always avoided losing close to nothing during these difficult times? My dad isn’t an investment advisor or or work at a bank nor does he work as a stock broker. In fact his career for close to 4 decades was as a manager at a retail store. How has he always understood when he had to make changes and at the right time? He has either been visiting the only fortune teller that isn’t lying or he understands finances more than the average person. I think it’s the later.

My father’s financial interests started when he worked as a teller at a bank when he was a teenager. The job required him to read all about how to manage money so he could easily answer the questions his customers would have. He only worked there for about five years before he moved on to a different career. The things he learned in that limited period of time he ended up taking with him for the rest of his life. He made some mistakes along the way but due to his knowledge, he understood how to fix those misadventures and limit the damages.

Since the time that he switched careers over 40 years ago, I don’t think he has picked up a book on finances. Having said that I can say for sure that he read so much more in those five years than most people read in 20 years. The wonderful thing about personal finance basics is that they really don’t change. The simple formula’s involved with finances or principle or the dividends have remained the same for ages. The more reading you do the more you will know how to manage money.

Knowledge is the key to life. By reading as much as possible or even just a tiny bit you will better understand how to manage money. Just by spending a few short hours each week informing yourself with this blog and by picking up some excellent books you will understand the investment trends and will avoid the crippling losses. There aren’t too many things more important than making sure your finances are always in order. A little knowledge is a dangerous thing. The more you have the more you will save.