FINANCIAL FREEDOM

How To Simplify Your Living Expenses

Written by Dian Herdiana on 8:29 AM

Authored By: A. Annika Smith

Here's the thing: I'm a New Yorker. And in New York, it is amazingly difficult NOT to spend a lot of money, just on the basics! As a student of Harv Eker, I am trying to limit my expenses to 50% of my after-tax income, and I have to tell you, that is really hard to do. Harv isn't the only one to suggest this either: almost every money-management guru gives the same advice. Simplify your expenses.

The fact is, if you want to become financially free, you must do two things: increase your passive income and decrease your expenses. Once your passive income is equal to or greater than your expenses, you are financially free. The concept is simple enough -- and in other articles I address creating passive income (the easiest and fastest way to do this would be by renting your rooms). But how do you simplify your expenses? Especially when you look around and you don't see a way HOW? Here are a variety of ways you can still live a decent life and be a bit more frugal at the same time.

Food & Toiletries

By far, making lunch at home was one of my biggest savings! I made lunch and snacks and bought them to work.

Instead of buying shower gel, go back to soap bars. They last longer and are much cheaper.

Don't wash your hair every day, and when you do wash your hair, only wash it once. That saves lots of shampoo.

I made my own coffee at home -- or cut it out altogether and put that money aside in your financial freedom jar. One guru calls that the "latte factor."

As a nation, we eat out a whole lot more and buy convenience foods to just heat in the microwave -- but these can be expensive. Cooking may take time, but it does save you lots of money.

Buy generic! I was so opposed to this, and one day I ate some potato chips that my boyfriend bought. Seriously? They didn't taste different from the name brand. Try it. Ok, some things may be non-negotiable, but you'd be surprised what is. Your grocery bill will go way down.

Take the effort to cut coupons, take advantage of sales, and go to discount warehouses, like Sam's Club or Costco.

Heat & Electricity

If you don't already have one, get an electric thermostat with a timer, so you can change the temperature automatically during specific times of the day. Lower the temperature when the family is out of the house.

Use space heaters and lower the heat in the rooms you use. Use an electric blanket at night.

There is plastic covering you can get at the hardware store and cover your windows. That keeps the heat in the house.

Make sure your boiler and hot water heater are maintained properly.

Wear layers of clothing and keep the heat lower.

Use kitchen and bathroom vents sparingly in the winter

Replace regular light bulbs with compact fluorescents

Wash laundry in cold or warm instead of hot

Use a clothesline instead of using the dryer

Use a ceiling fan instead of an air conditioner.

Cell Phones, Internet, and Communication Utilities

Avoid pre-paid cell phones, even if you just want the phone for emergencies, unless you are careful to use a plan with minutes that don't expire. You pay exorbitant rates per minute.

Never underestimate the minutes your teen may use. Be careful not to get the lowest plan. Constant overages are very expensive overall.

You don't necessarily need a home phone if you have a cell phone. With free nights, weekends and long distance, you may save considerably. Be careful with phone plans that have low rates, because the taxes add significantly to the bill.

For your Internet connection, you don't have to get the highest rate of connection speed. For the average user, you won't be able to tell the difference and that can save you $20 a month.

If you switch to broadband, don't keep your dialup (unless you travel often outside the country or in rural areas). Also, drop paying for AOL. All AOL features are free if you have broadband.

Entertainment

If you really wanted to be extreme about it, you could cut entertainment out altogether. But that's not really practical, so here are some ideas.

First, if you think FREE, you may not get free, but you do end up with "cheap." Cheap doesn't mean less fun, either. Sometimes you can have MORE fun.

If you live in a city, just try walking around. In New York, I have found impromptu concerts by street musicians or just sat in the park and people watched. You'd be amazed how much fun you can have!

Instead of eating out or going to bars with friends, host a potluck at home or just have friends over for drinks. It's much cheaper to buy liquor than to buy drinks at the bar.

For movies, go to matinees or the $2 movie (some communities have them). Yes, those movies are second-run, but hey, it's worth financial freedom to me. You can also always rent movies.

Cable. When times are tough, the cable needs to get going. It can get so expensive! If you do need it for the reception, get basic and then rent movies. Buying a great DVD player and renting movies is cheaper than cable in the long run. If you rent rooms in your home like I do, keep the cable -- it's a perk for your tenants that are worth paying for.

Take your kids to the bookstore and hang out.

Find free community shows, like Shakespeare in the park or fireworks.

Take the kids on the subway trip -- as far as you can and go explore. In New York, take the train to Coney Island.

In the summer, there is always a local food festival or street fair.

Get your kids involved in a community group, like a theatre. They develop skills, make friends and have fun.

Clothing

For kids, don't go over the top with the brand names, especially since the kids will grow out of them quickly.

For adults and older teens, don't buy really trendy clothes that will only last one season. Buy classical fashionable clothing that will last, and get trendy with accessories.

Buy shirts and ties or blouses and just one suit -- accessorizing is cheaper.

Buy a few pieces of quality clothing as opposed to lots of cheap clothing. They will last a lot longer.

This goes without saying, but buy clothing in the off-season and on sale. You will save a tone of money.

Transportation

A gas saving tip I just learned: put your car in cruise control whenever you can. It has cut my gas bill in HALF.

If you live in a metropolitan area, try walking around the city as opposed to taking a bus or a train. In New York, you can even get there faster sometimes! :-)

Maintain your car -- tire pressure, oil changes, everything. Preventative maintenance is way cheaper than repairs.

Never use cheap gas - use quality gas and the correct octane for your car. It may seem more expensive, but it's cheaper in car repairs in the long run.

Don't be afraid to walk, even in the winter. It's great exercise and it saves a ton of money. Bring a backpack with you for grocery shopping if you need only a couple of things.

The Change Jar

I have a change jar. Every time I pay for something, I always use bills and get the change. I put the change in the jar. You wouldn't believe how much money you can save! This money could be entertainment money, allowance for the kids, put it in a savings account or saved for emergencies. This change jar has saved my butt many times over the years, and is a great way to have "found" money at the end of the month.

Annika Smith is dedicated to teaching others how to be not only financially free, but also wealthy and happy. Want to be rich? It's easier than you think. Follow the exact path Annika took to massively improve her life by checking free information at clues.rentrooms4cash.com.

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Get Control Of Your Money And How To Keep More Of It!

Written by Dian Herdiana on 5:57 AM

by Clare Evans Author's Home Page Do you find it hard to get by each month and your spending is either out of control or starting to head that way? If you're struggling with money then don't despair, you can get back on top. If you'd like to have more money each month or want to get control of your finances here are a few tips to help you get on top of things and start getting your spending back under control. When it comes to money we tend to fall into one of three main categories: spend less than we earn, spend what we earn, spend more than we earn. Create some good financial habits by taking a look at where you are now. Where would you like to be? Follow these tips to help you get there. - Keep a money diary for a week. It can be surprising where all the 'cash' goes. You probably don't really think about it on a daily basis. After all you probably just go to the bank when you need more and if you're lucky and your account is still in credit, you get what you request. But what exactly do you spend it on? Where does it all go? Keeping a money diary can help you get an idea of the flow of your cash out of your bank account. Whether it's cash, cheques, cards or just those monthly bills. Get a small notebook, carry it with you and write down every single thing you spend, as soon as you spend it, every day for the next week. Every bill, standing order, newspaper, snack, bus fare, coffee ... - Your monthly expenditure. Work out what you spend monthly on everything: rent/mortgage, utility bills, food and essentials, meals out, entertaining, clothes, holidays, presents, credit card repayments etc. etc. Gather together all your salary slips, receipts, bank statements, credit card statements, details of loan payments, mortgage, you money diary, etc... - anything which shows money coming in and money going out. Include any direct debits or standing orders from your bank accounts. Including the basics, compare your total outgoings with your income. Where's the fit? Are you overspending? - Create and Emergency Survival Fund. How much do you need to pay for the basics like mortgage, rent, insurance, bills, food and car each month? Aim to save at least three times your basic monthly outgoing that you need to survive. Should the worst happen and you lose your job, go sick for a period of time or decide to have a change of career, you will have a financial cushion to support you. Place it somewhere with easy access but with - Reduce Your Debts. How much is your debt actually costing you? Decide that today is the day you're going to take responsibility and you put yourself in a much better position to do something about it. What would you rather be spending that money on? How many debts do you have - loans, outstanding credit cards etc? What interest are you paying on them and over how long? How many payments are outstanding and how much will you end up paying in total? If you can create some spare income each month can you put it towards 'busting' some of your debt. - Save 10% of your income. Pay yourself first. As a minimum put aside at least 10% of your monthly salary. Set up an automatic payment straight out of your bank account into a savings account. Initially, place it somewhere with easy access, preferably earning the highest rate of interest available. Never under the mattress! You never know when you might need it and you're starting to invest in your future. The only way to get rich is to save and invest! Start thinking long-term for your savings - five years or more, not just saving for the next holiday. - Become a Savvy Buyer. Always take a little bit of time and effort to shop around for the best deals - don't just buy the first thing that comes along. How often do you check out the best deals available for insurance, mortgage, fuel, credit cards? Check out all the brokers and online insurance companies for the best quote. Use cost comparison sites such as www.kelkoo.com or www.dealtime.com. You can also save money by switching to a different energy supplier via sites such as www.uswitch.com. - Get Sound Financial Advice. While you can discover a certain amount from newspapers, magazines and the Internet, it's always worth discussing your financial requirements with someone who knows what they're talking about. Talk to a Financial Advisor. They usually offer a variety of products from different companies. Find someone by recommendation or have an informal chat with one or two, to find someone you feel comfortable with. Make sure you are clear about what you want from your investments. Are you looking for growth, future security or an income? Your requirements may change over time. Use these tips and you're sure to get better control of your money. Article Source: http://www.article-host.com/

About the Author

Clare enables busy individuals and small business owners to organise their lives more effectively. Read more Time and Life Balance articles on her site http://www.clareevans.co.uk Download a free extract of her ebook on her website http://www.clareevans.co.uk/moremoney.htm

Why Should Kids Get Allowances - The Top 7 Reasons

Written by Dian Herdiana on 7:33 AM

By Rachel Incoll

The question of whether allowances are right or wrong, is one that has been argued for many generations. Now it’s your turn, as a parent, to decide whether or not an allowance is the best way to educate your child about financial responsibility. There are many reasons given on why a regular payment of money to a child should or shouldn’t be done – ultimately I believe there is no right answer, it is up to each individual family to decide what is the best option for them. Through many years of working with parents and educators, these are the top seven reasons I keep hearing on the question of why should kids get allowances.

1. They learn to be wise with how they spend their money. It may help to teach them how to prioritise their spending, & learn from an early age what things are a waste of money. 2. They learn how to save money. Having a regular amount of money, may make it easier for them to establish good saving habits, as a certain percentage of the money from each payment can be placed into a savings account/piggy bank. Without an allowance, any money they receive, may simply be spent, with nothing going to savings. 3. They learn how to donate their money. A certain percentage of their money can also be allocated to donations to the needy, hopefully encouraging your child to be more thoughtful of others, & not greedy with their money.

4. They will learn how to budget their money so it lasts between payments. Eventually, most children will learn to be careful how they spend what limited money they have, so they don’t run out of money. This will only happen, if the parent doesn’t give in to the initial whining for more money when the mistake is first made! 5. They can learn to make mistakes with small amounts of money. Kids will learn how to manage their finances responsibly far quicker through being allowed to make mistakes themselves (and suffering the consequences), rather than being told how they should be managing their money by someone else. Parents need to be there to guide their children on how they should spend their money, but not dictate (unless there could be serious consequences from their mistakes).

6. They may stop nagging you for money. The idea is, if they are receiving a regular amount of money, and they have a good understanding of how to budget it then they will never run out of money, so won’t keep pestering you for more. Realistically, it will probably never put a complete end to the nagging for money, but it should reduce it.

7. You may end up forking out less money. If you sit down, and add up how much money you give your child during the week & how much you spend on items for them (e.g. clothing), it may actually work out cheaper to give them an allowance, and make them responsible for a lot of their purchases.

As I mentioned earlier, an allowance isn’t necessarily the best option for every family, but these are some of the reasons why many parents & educators believe an allowance is the only way to go. Some families though, may not have enough room in the family budget to provide their children with a regular payment, or may simply not believe in it for their own personal reasons. Either way you choose, I have seen with my own eyes, children from each side of the fence who have grown up to be exceptional money managers, and likewise children who seem to have no idea. Ultimately, it comes down to how much guidance a child receives from their parents/guardians on money – whether through an allowance or not.


Rachel Incoll is the author of Kids Money Tips. She has helped show thousands of parents how they can teach their children everything they need to know about money in just a few simple steps. Visit her site http://www.kidsmoneytips.com to find out how your child can learn to save & manage their money more effectively with great, printable money charts, fun worksheets, play money and more.

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Eliminate Your Credit Card Debt Forever - Without Stress

Written by Dian Herdiana on 8:36 AM

By Christopehr M Luck

In recent years, the amount of credit card debt being carried by Americans has reached hundreds of billions of dollars, with interest payments each year that would sink the economies of many small nations. But you can eliminate your credit card debt forever, even if everyone around is stuck in an endless cycle of debt slavery. How? Read on, dear internet friend.

STEP 1: CONSOLIDATE YOUR DEBT. If you have any more than one credit card with a debt due to be repaid, then you’re a candidate for credit card debt consolidation. The ‘minimum monthly’ payment each month includes many variable, including the interest rate, the minimum monthly base (usually around $25 per month of a few percent of the debt, whatever is higher), and any ‘fees’ you’ve been charged through the month for things such as using an ATM, writing a check on your card, or, if you deal with companies like MBNA, breathing. To consolidate that debt, simply go to your bank and ask them about a debt consolidation loan. The interest rate will be far lower than the 9% to 29% that credit card companies can charge, and the repayment schedule will be far clearer of the hidden extras (such as insurance) that credit card sharks will hit you with.

STEP 2: CLEAN UP YOUR CREDIT HISTORY. Some people, many of us in fact, will let the occasional credit card payment slip by late, or even miss it all together, if things are a little tight each month. The problem with that is that it sits on your credit card report for the next seven years whenever you do that. So part of eliminating your credit card debt is to ensure that your credit score is clean and healthy. Some people will borrow a small amount from a bank and set up their account to automatically repay it each month, which will cost you not a lot in interest, but will make your credit report look much better in twelve months time. Others will just get ruthless with their repayments – pay a little bit extra than the minimum, pay it on time every time, and call the credit card company and ask them to REDUCE their spending limit whenever the debt goes down by a thousand dollars. The card companies don’t particularly like doing that, but they will, and it will help you get a better record when you’re not tempted to respend.

STEP 3: IF YOU MUST MISS A PAYMENT – TELL THEM. Contrary to what you might think, missing a payment is not considered nearly as bad by a credit card organization if you just call them and let them know you’re running a bit tight this month. Most companies just want to know you’re not stiffing them, so will gladly waive a late payment fee, or even allow you to schedule part payments, just as long as you’re dealing with them in good faith. And part of eliminating your credit card debt is to deal with these people in the best faith possible.

STEP 4: START USING CASH. It really isn’t that hard to use cash. Sure, you end up carrying money that you probably feel uncomfortable carting around, but is carting around a credit card with a $5,000 limit really that much safer?

STEP 5: REPAY AS YOU SPEND. It’s not something that is advertised by credit card companies, but most of the time you only pay interest on what you owe when the company prints off your monthly statement. That means, if you spent $100 on the 1st of the month and put it on your Visa or Mastercard, and you paid that $100 back with a check to the card company on the 10th, and they send out your statement on the 20th – you have no debt, and thus, no interest. For those wanting to eliminate credit card debt, this is an incredible opportunity to get the convenience of a credit card, without paying any interest AT ALL. In fact, if you’re prompt with your payments, don’t spend on big ticket items that will take months to pay off, and you keep your balance down to next to nothing, you can save literally thousands of dollars every year. Remember – repay before statement day. It’s the best way to eliminate credit card debt before it even happens.

About the Author: If you are interested in additional debt consolidation articles of mine, please feel free to visit my financing website.

Source: www.isnare.com

Monitoring Personal Finance

Written by Dian Herdiana on 6:26 AM

By: Sophia Nadal

The majority of us are sticklers for finances at work, but often disregard our personal finance at home. For those who are not accountants, the process of keeping financial records and ensuring all financial items are squared away can be quite boring and often confusing. Instead of ignoring your personal finance until a problem arises, take the initiative today!

One of the important determinants of the personal finance is credit. In the domain of finance the credit score holds the key to the success. In the absence of respectable credit score, you would not be able to borrow money or obtain a home loan or a vehicle loan. The importance of this number can be judged by the fact that if this number goes wrong then it has the ability of leaving your goals unfulfilled.

Your credit number is directly associated with the credit that is currently in your name. Individuals who abuse credit cards and rack up high bills often have poor credit scores. Remember, it is not the amount your charge that can become detrimental to your credit, rather it is the amount you keep on your credit cards that can prove harmful. Use your credit cards wisely and carefully check your monthly statement. Once your statement has arrived, strive to pay off your outstanding bill in full each month.

One of the major problems faced by the society is identity theft. In case someone steals your identity he has the capability to destroy your finances, ruin your credit as well as damage your name and reputation. There are certain measures that you can take to prevent such a case. These measures include, screening all your financial statements and protecting your personal information zealously.

Most individuals put off saving towards retirement until a later date. Quite often, these individuals are often caught off guard by their rapidly approaching retirement date and the non-existent retirement fund. Instead of waiting until tomorrow, begin today. Take control of your personal finance situation and invest in a retirement fund immediately. Begin putting a portion of your income in this account in order to secure your future.

Make a budget and stick to it. It is an excellent tool to cut down spending and control your finances. When you can see exactly what numbers go in the income and expenditure columns you can easily spot the problem areas. The only money you have to spend in the month is that which remains after taking out items such as a rent or mortgage payment, car payment, insurance, utilities, and food.

In case you feel uncertain of how to go about settling your personal finances yourself then you can consider hiring an accountant. They will be able to tackle these problems as well as take care of any potential problems that they feel they can foresee.

Although treading the financial domain at first might seem like an intimidating proposition, but it is nothing to be scared of. Venture forth and work towards rebuilding or smoothening your credit scores.

Article Source: http://www.financemanual.com

About the author: Sophia Nadal is the chief writer at Finance Central it's one of the webs most up to date Finance sites, why not sign up for the free Finance newsletter. Want to read more Finance articles?, just go to: www.financec.com/articles
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How You Can Use Rehab, Refinance and Cash Out as Long-Term Wealth Building Real Estate Investing

Written by Dian Herdiana on 5:47 AM

Author: David Neese Fixing up a property to rent out can have some hidden profit centers that can help you become financially independent in a hurry. Today we are discussing a somewhat advanced strategy for you to use after you have been in the creative real estate investing business for a while. I call this “Rehab, Refinance, and Cash Out”. This strategy can lead to true long term wealth and financial independence. This works very well in a buyers market like Memphis where prices have been quite flat for some time. You need to use this to augment your wholesaling for immediate income and retailing for bigger short term profits. Rehab, Refinance and Cash Out is a long term wealth building strategy and will be something you will be glad you did as it is a long term buy and hold strategy, and those are the strategies that lead to true wealth accumulation and financial independence. Let me explain how this works. You find a good middle to low end 3 bedroom home that you are able to buy from an out of state owner or other motivated seller that needs a little work and you buy at 60% of after repaired value. You buy the house using a hard money lender like http://www.pleaseclose.com/memphistrading and do your fix up and have a property management firm manage the property and put a renter in the house. The hard money lender will typically loan you up to 65% of the after repaired value to purchase the house which you use to buy the house and then repair it. Now that the home is repaired you obtain an investor friendly mortgage and cash out by refinancing at 80-90% of after repaired retail value and you should be doing this with properties where this strategy gives you back at least $10,000 at the refinance that you can use in your business any way you need. Do not use this money to live on, use it solely to grow your real estate business. Once you have done this strategy on 10 homes you should be able to keep finding better and better deals because you can close quickly as you have cash in hand to make things happen. More cash equals better deals and more opportunities. By the time you repeat this strategy 20 times you should have at least $200,000 cash plus about $200,000 equity and 20 homes giving you at least $2000 per month positive cash flow whether you decide to work this month or not since you have a property management company handling things for you. With average annual rent increases, within five years that $2,000 a month should grow to $4,000 a month. In 30 years you should have $2 to 3 million plus in paid off real estate. It’s a good solid long term strategy to add to your immediate selling from wholesaling, retailing and lease options that the extra $200,000 in cash will help grow tremendously. The rent minus the management fees and all loan and other costs must leave you with positive cash flow or this strategy should be avoided. If you cannot cash out on the property I don’t recommend holding it long term as you want to be able to use your best mortgages to cash out. You can purchase using http://www.pleaseclose.com/memphistrading if your Equifax credit score is above 550(which is bad credit) or you have a co-borrower who has an Equifax score over 550. A good investor friendly mortgage company will give you good rates if you are at 660 middle score or above and the very best rates if your middle score is 720 or above. Your first 10 investor mortgages in your name and 10 in your spouses name are the easiest to qualify and get the best deals. After those you really need a good investor mortgage company to work with. Take the time to find the real investor friendly mortgage companies that can help you get loans for 100 properties and not just the first ten and let them have the easy ones and the tougher ones. I do recommend having more than one good lender available though, but stick to the ones that specialize in investor loans. Find out from other investors who the most investor friendly mortgage companies are to use to refinance the repaired home. I do not advocate becoming a landlord as I do not believe this is a valuable usage of your time and energy. I highly recommend asking around and finding a good property management company that will charge you 10% or less to start out with and gradually lower that % as you add more and more properties. I feel this is an advanced strategy as you won’t see any cash in your pocket from this strategy for 4-6 months after you find the deal which is a long time to work and not see any pay. If you are wholesaling and making consistent money each month then it shouldn’t matter. This strategy will magnify the profits you make in your investing business in ways you might not have imagined. This strategy is a natural progression from wholesaling as you are already helping others find these kinds of deals, now you will be able to get the cash out typical of probably 2 wholesale deals, just paid slower, and at the same time building a nice future nest egg.

About Author

David Neese is a real estate investing author who offers a free course for real estate investors delivered by email, audio and teleseminar which you can get for free at: http://www.FreeRealEstateInvestingCourses.com You can find more information about David at http://www.DigitalSuccessCoach.com Article Source: http://www.1888articles.com/author-david-neese-591.html

Battle of the Cards: What to Look for When Applying For a Credit Card

Written by Dian Herdiana on 9:39 AM

By Mike Ziegler

Getting a credit card nowadays has definitely become a necessity. With today's fast-paced life, shopping convenience is the ultimate time saver in everybody’s hectic schedule.

With credit cards, you can many times go shopping without having to leave the comforts of your home. No wonder many people are trying to grab the opportunity of experiencing online shopping.

The concept of using credit cards is so simple. It works with a swipe and the item is delivered to your door. Now people can buy anything they want without having to carry lots of cash.

However, the problem lies in the way you choose your credit card. It does not matter whether you get a gold, platinum, or basic. It does not matter whether it has your picture embedded within the plastic. It doesn't even matter if it has your favorite NFL team logo on it.

What matters most are the features that go with the card. Making wise decisions in choosing these features is vital to your credit rating and FICO score. As they say, a good credit card with reliable features will definitely work for you.

Applying for a new credit card benefits you most when you consider the benefits of every feature in the fine print.

What people do not know is that debt problems are often associated not in the on-going transactions that an individual has on his card, but with the terms of the offer written in the fine print.

Not understanding the terms of the offer is the most common mistake people make when they apply for the credit card. They do not read the fine print. They think it is to time consuming or boring. They don't want to appear foolish because they do not understand the terms. They just automatically sign up, thinking that their future will improve by the way they use their credit cards.

In order to know more on how to apply for the best credit card, here are some things that you have to do first:

1. Do your homework

Never be blinded by the credit card offers that come your way. It is business and money talks. So credit card manufacturers have to incorporate enticing credit card offers just to gain new customers.

Without proper research, you will be easily seduced with such attractive offers. But the question remains whether these offers are founded on truth and established on reliable terms and conditions. Pay particular attention to the annual percentage rate (APR), penalty percentage rate if any, and late or annual fees. Make sure you understand when the credit card company considers a payment late.

Doing your homework will not just make it appear all better. It is the one non-negotiable step in applying for a credit card.

2. Evaluate your financial status

Do you really need credit? In the United States, getting credit is vital. Your insurance rates, mortgage rates, car purchases, and even house rentals are dependent on your credit standing.

Of course you need credit! But you should consider all financial options before you try to get a credit card. The problem with most people is that they thought that applying for a credit card would create an extension of their financial resources. What they do not realize is that credit is credit, and they need to have the money to pay for it.

It is best if you build your credit standing systematically, based on your ability to pay the debts and on the necessity of the items you have purchased. Are they really that important? Keep in mind that when purchasing items on credit, it is better to buy the most needed items first.

When applying for a credit card, do not be in a rush. Keep in mind that what you ultimately want here is not the card itself, but the credit history you are building. Hence, it is best if you take your time and study each credit card offer thoroughly. Then compare several of the better offers, and go for the best!

Create A Saving's Plan For Financial Freedom

Written by Dian Herdiana on 5:55 AM

By: Joseph Kenny

The first step in beginning financial security is creating a personal budget. In order to plan a personal budget you have to know how much you possess and how much you owe. On the asset side of your life how much money do you have in your wallet? How much savings do you have in the bank? Do you own your own home or do you rent or do you have a mortgage on it? Do you own your car or do you have a loan on it?

These are all the initial items for consideration for building a personal budget. On the liability side you need to list the monthly car payment, the monthly rent or mortgage payment, utilities, charge accounts or credit card payments and other maintenance and upkeep expenses. You finished your basic homework now let's create a monthly personal budget.

A personal monthly budget is used to estimate what you earn and what you pay. It gives you an alert if you can plan in advance what each month you will earn in salary, dividend earnings and it will allow you to determine how much you will owe.

This is how I would set one up.

At the top of the list place the following categories on the left side of the sheet, projected monthly income, actual monthly income and on the right side place the categories, projected balance, actual balance, and difference, these will be handled after you total your debts. Under projected monthly income list the following subcategories, income1, extra income, and total monthly income.

Under the major category of actual monthly income list the following subcategories income1, extra income, and total monthly income. Beneath this header place the following categories, housing, transportation, insurance, food, entertainment, loans, taxes, savings or investments, gifts and donations and legal. Each of these categories will have projected cost, actual cost and difference columns added to each row within these major expense divisions. Each beginning of the month you must predict the next month's expenses, during the month as you pay those expenses enter that amount into the actual cost column. The end of the month you should enter the difference between the projected and actual cost into the difference column.

You remember those categories on the right side, projected balance, actual monthly income and difference? They are calculated by subtracting the total expenses from each balance. The difference is obtained from subtracting the actual from the projected. At the bottom the totals of the projected costs, actual costs and difference of the two are given. The maintenance of the personal budget as well as the decipherment of the spending trends should provide you with an invaluable tool to speed you towards financial success.

A personal budget set up in this manner can simplify the process of setting a certain amount of ones' salary or profits into a savings plan which is composed of simple interest savings, mutual fund investments for your retirement and a long range acquisition plan for real estate investment.

Don’t Get Rushed Into Refinancing Your Home Loan!

Written by Dian Herdiana on 6:35 AM

There are many things you need to consider before making your mind about refinancing your mortgage loan or not. Basically you need to compare the terms of the outstanding mortgage with the new loan terms in order to see whether you will be benefiting from a refinance transaction or not and whether the advantages you might obtain are worth the trouble.

What to Analyze When Considering a Refinance Loan

The main terms you’ll need to watch closely when comparing your refinance home loan with your current mortgage loan are: Interest Rate, Length of the repayment program, Resulting Loan Installments, Cash-out amount (if applicable), prepayment clauses (penalty fees, prohibitions, etc.), Administrative Fees, Closing costs and other fees and costs.

Make a table with all this information and compare the overall costs by adding each line in each column. You’ll be able to obtain the numbers from the loan contract and the refinance loan proposal or loan quote. Make sure to read the contracts thoroughly so you don’t let anything out of consideration.

How To Compare Your Loans

The interest rate has to be lower in order to benefit from refinancing. However, if the interest rate is higher or the same, this can be compensated by longer repayment programs or by a larger loan amount that will let you get cash out of your refinance loan. If none of the above is true, then the refinance loan won’t be to your advantage.

The resulting loan installments need to be low enough so you can afford them and they must leave you enough space to undertake other expenses or deal with unexpected situations. So, you should only refinance for higher monthly payments if you are sure you’ll be able to afford them and if you can save money by doing so. This can be achieved due to a reduction on the interest rate or a cut on the repayment program.

Deciding on a Refinance Loan

Taking into consideration the above, plus any prepayment penalty fees, administrative fees, closings costs or other fees and costs, you can decide which refinance loan is right for you. You can search for online refinance loan lenders and request loan quotes and specific information on all of these factors. If after summing up all the variables you conclude that by refinancing you will save money or bring ease to your financial situation, then go ahead. Otherwise you may want to consider other financial products.

The key to success in this kind of decisions is not to rush in and do a thorough research before applying. Once you’ve collected enough information, compared different loan quotes between them and with your outstanding mortgage loan terms, you will be able to make a conscious decision.

Mortgage Refinancing: Five Excellent Reasons to Get a New Mortgage

Written by Dian Herdiana on 11:10 AM

If you are on the fence about mortgage refinancing, there are a number of great reasons to refinance your mortgage regardless of what interest rates are doing. With mortgage refinancing you can reduce your monthly payment, lower your interest rate, and even cash out equity in your home for any reasons. Here is a list of five excellent reasons to help you decide if mortgage refinancing is right for you.

I. Mortgage Refinancing to Reduce Your Monthly Mortgage Payment

The most common reason homeowners have for mortgage refinancing is to lower their monthly mortgage payments. There are several different ways to accomplish this. If you plan on staying in your home for a long time, consider paying a point or two in order to buy down your mortgage interest rate. If your financial situation has improved since purchasing your home, you may qualify for a better interest rate without points. If you are unable to qualify for a lower rate, you can still lower your monthly mortgage payment by extending the term length of your mortgage loan. Mortgage loans typically come with a term length of thirty years; however, there are now forty and even fifty year mortgages to choose from.

II. Mortgage Refinancing to Switch Your Adjustable Rate Mortgage (ARM)

If you purchased your home with a risky Adjustable Rate Mortgage and concerned with the risk of rising interest rates, refinancing to a fixed interest rate loan could give you the financial peace of mind you need. Fixed interest rate loans typically come with higher rates than adjustable rate mortgages; however, you can lower your payment amount with the new interest rate by extending the term length. A lower payment with a fixed interest rate mortgage will allow you to plan your monthly budget around the mortgage payment.

III. Mortgage Refinancing to Avoid Balloon Payments

Balloon mortgages are popular because they come with very low monthly payments; however, once the balloon payment is due you could be facing a financial hardship if you’re unable to pay. Refinancing to a fixed or adjustable rate with a long term length could match your current payment amount.

IV. Mortgage Refinancing to Stop Paying Private Mortgage Insurance

Many homeowners that purchase their homes with less than 20% down or borrow above a certain level of home equity are required to purchase Private Mortgage Insurance. Private Mortgage Insurance is expensive; the premiums can add hundreds of dollars to your monthly payment amount and does nothing else for you. Private Mortgage Insurance only protects the lender from losses if you default on the mortgage. Even if you have not build up sufficient equity in your home there are a number of mortgage refinancing programs to help you drop this costly insurance.

V. Mortgage Refinancing to Borrow Against Your Home’s Equity

Another popular reason for mortgage refinancing is to cash out equity in your home. This cash can be used for any reason: you can pay off credit cards, make repairs to your home, pay for college, even purchase a new car or take a vacation. With cash-back mortgage refinancing this is fast and easy. You even gain a tax deduction for the interest you pay when borrowing against your home equity.

To learn more abut your mortgage refinancing options, including costly mistakes to avoid, register for a free mortgage tutorial.