FINANCIAL FREEDOM

Your complete guide to achieve financial freedom. Proven tips, tools and tactics for you to achieve financial freedom. Make money, save money and effectively manage your money.

Habits and How You Got There

Written by Dian Herdiana on 6:36 AM

The situations we find ourselves in and in particular where this involves financial difficulty are often caused by the habits that we have. Humans are habitual beings and most actions in our life are caused by the habits that we have adopted which are very often difficult to break.

None more so than habitual spending on the wrong things or the things that we don't need but feel we want.

This is going to take a bit of work on your part to have an honest look at the way that you spend money and see if there are any habits that are attached to your spending that caused you to get in your current financial strife.

This might be as simple as having the desire to have the latest fashion clothing at all times or to be seen in a brand new car.

It could be that you prefer to eat out all the time rather than cook your own meals at home because that is something that you've always done.

There could be any number of habits that are causing you to spend money were you shouldn't.

What is causing you to spend money when you should be saving?

What is causing you to go into debt and the stress that goes with it for the sake of having what everybody else has or what currently happens to be trendy?

You could just be in the habit of buying the wrong food every time you go shopping simply because you don't have a shopping list written in advance where you know exactly what you should be buying and sticking to that list rather than buying whatever takes your fancy.

Sit down with a pen and paper and write down the areas where you think habits are affecting your life and your decisions with the handling of your finances. Most people if they are honest will be able to come up with a reasonably long list of things that are affecting their decisions in life and once these are revealed you can go about changing them and thereby changing your whole lifestyle where you understand the importance of the balance that will bring about health, happiness and financial well-being.

No Comment comment | Posted in » , , ,  

Consolidating Your Debt

Written by Dian Herdiana on 6:33 AM

Consolidating your debt can help you to manage your debt more easily by helping to pay off many creditors at once with the use of another loan.

While this is generally only a transfer of debt from one place to another you can often get better interest rates on these new loans, particularly if you get it through your bank as a personal loan or by using your home as equity and that in itself can save you money.

By consolidating your debt at a lower interest rate you will be able to reduce your debt faster and in the process have the ability to pay off your high interest debts sooner.

It might also give you the capacity to grip superiority of saving money by beginning your loan repayments bygone and occasionally you can get discounts for well-paid debt on time.

Having one loan rather than a number of individual debts can make your budgeting a lot easier and can also reduce the number of debt collectors who could be calling at your door seeking payment of outstanding debts.

If you do decide to consolidate your debt then calculate precisely how much you need, to cover the various debts that you want to clear, and use the new loan to pay off that debt in a second if not you may be tempted to use the money elsewhere and in doing so make even more debt.

It might even be worthwhile having your new consolidated debt payable over a longer term to reduce your monthly payments and help you to focus on other more important or higher interest debts sooner.

The whole idea of debt consolidation is to improve your financial position and you should be looking at ways that you can do this. You must make sure that the interest payable on your new consolidated debt is fixed at a rate that you can budget for as it is too risky getting a variable interest rate loan where the rates could rise and leave you in a more difficult position than you would have been had you not consolidated.

If you are working with a credit counseling agency then discuss your intentions with them beforehand and get their expert advice on what the best solution for you will be.

No Comment comment | Posted in » , ,  

Child support

Written by Dian Herdiana on 8:40 AM

Child support is a high priority debt that you must pay no matter how difficult your financial position might appear to be.

There are a number of reasons why you need to make child support payments top priority. Quite apart from the fact that your children shouldn't have to suffer for your financial dilemma and the necessity for you to provide them with the necessary support to ensure their welfare is looked after, you also need to be aware of the consequences of not paying child support.

Any child support court order that was written or modified after the 31st of December 1993 will automatically be deducted from your wages if you are employed. If you are self-employed or unemployed you are still legally required to make the necessary payments.

Your failure to do so can result in various different actions being taken against you including debt collectors coming to retrieve the necessary funds, getting issued with a court order to recover the outstanding money or in some circumstances you can be put in jail until you make your past due child support payments.

You can see now why Child support is a high priority debt that needs to be paid before many other debts.

There are State Departments that have wide reaching powers to collect the past due money.

If you can't pay this money then contact them as soon as possible and work out an arrangement where you can pay off the outstanding amount by installments and then include this into your budget and prioritize it accordingly.

There are so many other areas that are affected by non-payment of child support that can impact on your ability to clear the rest of your debt including the sale of your assets to cover the cost and liens on your assets to stop you borrowing against them to clear debt.

Once your past due amount exceeds $1000 the debt will be reported to the credit reporting agencies and anyone who accesses your credit reports such as creditors, insurance companies, landlords and so on will see that you have fallen behind in your payments and this certainly doesn't help your cause when trying to sort out your debt problems.

Make it your priority and make your life easier in the process.

1 comments comment | Posted in » , , ,  

Gain Control With Budget

Written by Dian Herdiana on 6:43 AM

Once you have calculated precisely how much money you owe then it's time to make a budget that is going to assist you to use your income more efficiently by covering all your necessary expenditure and working towards the elimination of your debt.

A budget can be prepared in a book or more effectively online using a program such as Excel.

Now when you prepare your budget you need to take into account everything that you can think of relating to income and expenditure and this budget will need to be updated on a regular basis as more things come to mind when there are changes in your financial position.

This is why it makes it a lot easier to use a program such as Excel where totals can be added quickly and you will be able to see in a matter of seconds which direction you are going in and whether the steps that you have made have resulted in positive changes towards your financial well-being.

Where you are unsure about specific parts of the budget such as how much money you spend per week on food and other essential items, you will have to make an estimate initially until you are able to take notes the next time you go to the shops and see precisely how much you spend.

Once you get some of these figures you will be able to determine whether you are overspending in particular areas and what you can do about reducing such expense.
Your food shopping is one area where you can save a considerable amount of money because most people don't have any strict limits on their food spending.

Once again changes can only be made if you know precisely what you've been doing in the past and where you can make the changes in the future.
It might mean that you have to completely change the types of foods that you are buying and often the benefit of doing this is you improve your health along the way by buying food that is better for you.

Budgeting is your way to gain control over your finances once again. In fact it is the only way for you to gain control. It is a lot easier than you might expect and once you begin to use a budget you will wonder how you ever managed your finances in the past without having a budget.

No Comment comment | Posted in » , ,  

Borrowing from Friends and Family

Written by Dian Herdiana on 6:40 AM

There are many factors that you need to consider before borrowing from friends and family.

First and foremost you have to discuss, with whoever you are borrowing from, your financial situation so they are able to make a decision whether or not to lend you money based on whether they are comfortable that you are able to repay them.

There is no quicker way to lose friends or cause family strife than to get in a situation where you have borrowed money from them and cannot pay it back when they need it.

It is also recommended that you only borrow money from people who have excess funds that they have invested elsewhere and where you can pay them interest for the use of those funds so that they aren't losing out on the deal.

In situations like this you will be able to borrow money at a lower rate than you could get from any of the financial lending institutions and the person lending you the money could also get a better return than they would get by investing their money in those same institutions or at the bank.

So it is quite possible it could be beneficial to both parties in the deal but once again I need to stress the importance of total disclosure of your financial position as they need to know that to determine whether they are happy that you are a safe investment or not.

Friends or family should not feel obliged to lend you money no matter how bad your financial position is because it could put them in a similar situation.

It is better fair you to leave the risk with financial lending institutions if you have any doubts whatsoever of paying back the money borrowed from those close to you.

Some people are only too willing to take advantage of the opportunity to earn a little more interest and if that's the case then well and good - they have decided that you are a worthwhile investment. Let them have a look at all your books and your budget and possibly even get them to help you work through your budget and to sort out a plan of repayment for their loan to you.

No Comment comment | Posted in » , , ,  

Borrowing Against Your House

Written by Dian Herdiana on 4:05 AM

There are pro's and con's for borrowing against your home and they all need to be taken into consideration before you proceed with any additional borrowing.

On the one hand the money you can borrow on your home will be of a lower interest rate than most other forms of loans and this can help you to reduce your monthly repayments by using the house money for clearing more expensive debt. With the ability to spread the term of repayment over a much longer period you can generally make quite an impact on reducing your monthly outgoings.

Use your budget to determine how much you are paying on all your outstanding debt and then calculate what the payments would be if they were all consolidated under the one loan against your house. This will show whether that is the best decision to make to help you manage your finances more easily.

Where house prices are rising, you will have increasing equity in the home that will allow you to borrow more against it since the time you originally arranged your mortgage.

The downside of borrowing against your home is where you are already struggling to make your home mortgage payments and by borrowing more you will be putting your house on the line and risk losing it. You certainly don't want the banks to foreclose on your loan and if that looks eminent then it would be unwise to increase your borrowings.

If you calculate that you will not be able to make the additional mortgage payments then it is better to sell off other items that you have borrowed against to reduce debt elsewhere rather than risk losing your home.

It might also be necessary to consider downsizing on your home and buying something of a lower value so you can reduce your mortgage accordingly until you get your feet back on the ground.

Your home is your most valuable asset and you should always do all you possibly can to retain ownership of it.

No Comment comment | Posted in » , ,  

Discover A Favorable Consolidation Debt Elimination

Written by Dian Herdiana on 6:31 AM

How to Discover A Favorable consolidation debt Elimination

There are debt consolidation services for families and ancestors identically. If you are an discrete, before the debt consolidation services are going to setup a program that works with your individual income. a lot of of the services offer private counseling; and others even include mental support while offering you a plan that going to assist you reduce your debts in a timely manner.

a lot of of the online credit relievers are going to put reducing your debts first while they work with your individual needs. They may seek the best solutions, while walking your through the details at the same time. If you have business or personal debts or both, then the few debt consolidation counselors are going to discover away to merge the payments into one periodical installment.

Few debt consolidation services offer to assist individuals to reduce their bills in both business and personal debts to assist them to avoid bankruptcy. The experts are going to negotiate your contracts or else your debts to get the best solution for paying off your debts. a lot of online debt consolidation experts possess degrees and acquaintance in one or auxiliary fields, including law, psychology, and economics nearby other expertise in "lenders credit determination."

If you relate all the knowledge, expertise, and degrees, you are going to see that various of the debt consolidation experts have what it takes to negotiate secured and unsecured debts and creditors. Some of the debt consolidation experts are going to flat relate their expertise-- paired prep their nicely-laid out in the flesh plans--to cultivate a tactic that going to take down the balance owed per month.

As you are able to see, if you are overcome by debts, then the debt consolidation experts may be of great benefit. However, before you receive this expert consultation, you have to first find the right debt consolidation companions, since various organizations for debt relief are not what they appear.

No Comment comment | Posted in » , ,  

A problem called ‘Credit Card Debt ‘

Written by Dian Herdiana on 4:27 AM

The following article lists some simple, informative tips that will help you have a better experience with Credit card debt.

Credit cards are no more a luxury, they are halfway a dearth. So, you would imagine a covey of people going considering credit cards. Notoriety fact, a lot of people posses more than one credit cards. Inasmuch as, the credit card struggle is growing by leaps and bounds. However, the credit card industry again credit card holders are affected with a huge problem called ‘Credit Card Debt’. In order to sense what ‘credit card debt’ positively means, we need to register the workflow associated with the treatment of credit cards as consonant.

Credit cards, as the john hancock suggests, are cards on which you burden get credit i. e. make borrowings ( your credit card debt ). Your credit card is a representative of the credit report that you hold with the credit card supplier. Whatever payments you make using your credit card are in toto your borrowings that contribute towards your credit card debt. Your dismantle credit card debt is the total amount you owe credit card supplier. You must concede your credit card debt on a monthly basis. So, you reap a monthly statement or your credit card statement which shows your wipe out credit card debt. You must pay off your credit card debt by the money due date failing which you will incur late fee and interest charges.

I trust that what you've read so far has been informative. The following section should go a long way toward clearing up any uncertainty that may remain.

However, you have the option of making a imperfect ( minimum ) payment too, in which situation you don’t incur late payment but just the passion charges on your credit card debt. If you don’t pay off your credit card debt in full, the suspicion charges acutely get added to certain. So your credit card debt keeps on increasing, more then because the interest rates on credit card debt are generally major than the interest rates on other congenial of loans / borrowings. More, the affection charges add on to your credit card debt each month to form the latest invoice or the new credit card debt amount. If you continue manufacture partial payments ( or no payments ) the interest charges are calculated afresh on the spick-and-span credit card debt. Then you foot up palmy interest on the last month’s bag exorbitantly. Forasmuch as your credit card debt accumulates rapidly and soon you bonanza that what was once a relatively modest credit card debt has ballooned into a big amount which you find almost impossible to pay. Moreover, if you don’t still force your spending habits, your credit card debt rises equivalent faster. This is how the vicious circle of credit card debt works.

Now might be a good time to write down the main points covered above. The act of putting it down on paper will help you remember what's important about Credit card debt.

No Comment comment | Posted in » ,  

Choosing Your Credit Card

Written by Dian Herdiana on 10:29 AM

You should be able to find several indispensable facts about Choosing Your Credit Card in the following paragraphs. If there's at least one fact you didn't know before, imagine the difference it might make.

As you probably already know, there are many credit cards out able. The one you choose however, should reflect your lifestyle and your ideal spending amounts. If you are looking for the principal likely deal and the best job for your credit card, you’ll obviously need to look around at what you have to choose from and what works outstanding for you.

The first thing you’ll need to decide when choosing your credit card, is why you need exclusive in the first place. Some people converge to get a credit card for cash escape purposes. With a credit card, you can make purchases and permit things, leaving your paycheck or mismatched source of receipts in your bank account to draw interest. This behaviour, your bankroll will make headway to grow era you continue to comply the things you need. Wherefore at the end of the tour, simply pay your bill.

Others will choose to get a credit card and use it for instant cash purposes. This way, they responsibility need their credit card at an ATM and get instant cash, which is great for travel or going on a long and extended vacation. If this is why you yen a credit card, you should look for one that has the lowest rate implied for instant cash transactions.

With a credit card, you’ll again need to think about the payments. You’ll need to conclude if you want to pay the bill in full each time, or only the required price. When you select your credit card, you should look at the primitive rates, balance move rates, and other offers that may apply to new credit cards and new holders. Some will offer you truly amazing deals, especially if you retain good credit.

Another important area to reconnaissance at when choosing your credit card is the incentives.

Sometimes the most important aspects Choosing Your Credit Card are not immediately obvious. Keep reading to get the complete picture.

There are several cards out qualified that will come across you incentives, close as reward points and plane cash transfer with purchases that you can use towards champion send what you owe. There are several incentives out professional with credit cards, unabridged you have to do is look around and compare.

The key latitude you’ll need to look at and compare is the APR ( Minutes Scale Rate ). The APR is what you cede pay on what you clasp when the incentive duration runs out. APR rates commit vary among credit cards, so it is always credit your incomparable interest to compare and shop around. The subordinate APR rate you get, the better off you’ll be.

Another concern with choosing your credit card is the minimum roll amount. Most minimum payment balances bequeath leaving around 3 %, although some can be lower ticks others tend to enact quite a bit higher. The interest free period is a concern as well, as you will obviously yearning to choose the longest duration that you can keep the payments down.

When you make that final verdict and capture your credit card, you should always make outright that you know exactly what you are getting. Credit cards are major league to obtain, although they subjection lead to a downfall if you don’t choose them carefully. If you put some ticks and sift case choosing your credit card, you’ll catch the unequaled particular for you. As extensive as you take stress of your credit card and pay the bill on time, you’ll help raise your credit and eventually be powerhouse to clench even bigger things - akin as a car or same a house.

That's how things stand right now. Keep in mind that any subject can change over time, so be sure you keep up with the latest news.

No Comment comment | Posted in » ,  

Are You Building Enough Wealth to Support Yourself in Retirement?

Written by Dian Herdiana on 6:10 AM

(NewsUSA) - The twenty-first century offerings newly chances and requiring reasons for workers to reach the American aspiration of financial independence in retirement. Fortuitously, making that dream a realism got easier when President of the United States George W. Bush signed the Pension Protection Act of 2006 into law. This has enhanced the ability of millions of Americans to build up wealth through retirement savings programs.

Americans now in general are economizing less, spending more and living longer than old generations. A longer life span means the need for added to savings. And the sooner workers begin saving, the better. In financial planning, time is your best friend.

A $125-a-month investment at a modest five percentage annual return adds up to $50,000 in 20 years, more than $hundred thousand in thirty years and nearly $200,000 in forty years. The sooner you begin putting money aside for your future, the longer that money able to work for you.

If you see a dime on the sidewalk, you most likely are going to achieve down and pick it up. Yet, alot of workers are leaving 1000s of bucks on the table by not signing up for tax-deferred savings programs offered by their employers, specially when those employers provide matching funds. The problem is that some workers are unsure how to invest.

The Pension Protection Act assists resolve this problem by making it easier for 401(k)-typecast plans to enrol workers automatically. Workers are able to always "opt out," but they will not "lose out" by not making up a decision. Rules proposed by the Department of Labor boost retirement savings for these workers by creating appropriate default investments for long-term retirement savings.

Here are a few schemes to assist you begin taking charge of your retirement future:

* Take part in your employer's retirement plan at work, and be sure to capitalize of matching contributions.

* Increase the amount you contribute to your 401(k) or other retirement plan each year.

* If you are fifty or older, make another contributions of up to $5,000 to catch up for years in which you didn't put money into the plan.

* Be naturalistic about expenses in retirement to assure that you don't outlive your savings. Be sure to account for healthcare costs such prescription drugs.

Secretary of Labor Elaine L. Chao also serves as Chairman of the Board of Directors of the Pension Benefit Guaranty Corporation. For additional info, go to www.dol.gov/EBSA.

No Comment comment | Posted in » , , ,  
Subscribe to: Posts (Atom)

About Me

Hai! Odie is here to help YOU get in shape! Bookmark my blog now, and hoping you have a great knowledge from my blog!!

Want to subscribe?

 Subscribe in a reader.