A penny saved is a penny earned
Earning money is not enough to gain financial stability in life. You need to save money regularly to meet your future needs. Following is a step by step plan on how you can save money.
Step #1: Set your savings goal
Personal financial planning at the right time (young earning age) will help your dreams come true. If you ignore planning for future, you cannot save money. No matter how young or old you are, you need to set goals for savings to ensure financial security in future. Over time, you will realize the importance of saving money by setting goals and achieving them on time.
Step #2: Save for emergency needs
This is an important step in savings plan. You need to have enough emergency surplus in cash to meet unexpected needs.
If you do not have enough to meet unfortunate situations like loss of pay, sickness, house/vehicle repair, etc., it may strain your finances and you cannot save properly. Further, you may end up closing your savings plan abruptly. Hence, you need to have adequate emergency surplus to reach your financial goals.
Step #3: Save for short-term needs
Short-term goals are those that can be achieved within a year or two. For instance, vehicle purchase, home renovation, etc.
For this, you need to save money by using your home budget to see where you can reduce expenses on extra things. Thus, you may consider reducing expenses on eating out, shopping and entertainment. Keep track of your spending regularly to know where your money is going. You can do this by carrying a small book to jot down your expenses, or you can download a personal budget application to keep an eye on your spending.
Step #4: Save for long-term needs
Long-term goals are the ones that you want to reach in around four to five years. This can include arranging money for your kid’s education, buying a house, saving money for retirement, etc. If you don’t consider saving money for long-term goals, you will end up having little or none when you retire.
Saving for long-term goals is a difficult process and you need to be frugal at every stage of your life. You need to control your spending and inculcate good saving habits.
Most people think that saving money is a difficult task. However, if you start saving now with self-motivation, you can reach your savings goals easily. The sooner you act, the sooner you reach your financial goals. Therefore, set your savings goals, create your planned budget to cut unnecessary expenses and see how you can make big savings fast.
Are you not able to manage the outstanding loans, and are creating issues for your credit history? Are you living with the threats of your creditors, and now you know that may be, you do not have any option than to go for declaring bankruptcy? If this is the case, then you should not worry. There are so many options that can help you out in the degrading of debt issues, rather letting you go for the bankruptcy filing.
The best of all alternatives that you can avail regarding bankruptcy is the ‘debt management plans’. The term is defined as:
“A plan that helps to reduce the financial issues through proper payments and negotiation techniques applied with the creditors with the help of a good financial issues management company”
Debt Management Company
Such a company will analyze the current situation of financial health and would predict for you what is best. In this regard, it will run a deep investigation on your income status and then make a plan for the debt management. The company officials will then talk to the creditors and decide how best you can pay them back the money you owe.
The advantages and the disadvantages of the plan are as follows:
1) The plans are the informal arrangements of payment and do not require any formal steps like the IVA, relief orders or the bankruptcy filing
2) The cost of acquiring these plans is very less and one can easily afford them
3) The plans suspend actions against you by the creditors so that you are safe and you can easily pay the loan amounts
4) They negotiate with the creditors on how you will pay the loan amount and they have to lower or cease the interest amount as well
1) It is up to the creditors as to the agreement over the plan. If they do not agree they will still bug you and can take you to court
2) The arrangement is informal so the creditors may back out and you cannot do anything about it at any time
3) The plan runs for a longer period of time and you have to pay for the loans spread over many years
To know more on the subject, you can log on to the different online websites on how the debt management plans work, and what other information is there about the subject. You can also get information on the alternatives to bankruptcy so that you are able to decide which solution may work best for you. Different blogs and forums are also there to help you out on the subject. You can get any kind of details on any subject from them easily.
Credit card debt has become a serious financial issue for literally millions of people in the United States. If you find yourself mired in credit card debt, your credit may already be suffering and you may believe your only option is bankruptcy. However, there are debt solutions available that will actually help your credit score and will allow you to dig your way out of debt in a relatively short amount of time. So it is possible to get rid of credit card debt without hurting your credit score right? Read on for a few moments…
Debt Relief Options
There are numerous debt relief options available for people with credit card debt problems, some of them good and some of them not so good. Options include debt settlement, debt consolidation and bankruptcy.
Debt settlement is a negotiation process with your creditors in which they agree to a payment agreement that provides you with relief from your debt to them. Debt settlement agreements are often comprised of a combination of elements, including elimination of accumulated fees, reduced or eliminated interest and reduced balance amounts. Payment of a debt settlement agreement can take the form of a single lump sum payment or a series of smaller payments. You only pay a fraction of what you owe.
Debt consolidation does not eliminate your credit card debt, but it can make paying off your debts more manageable. People are familiar with debt consolidation loans, but these loans are often expensive and can actually make your financial problems worse. If you have bad credit it will be hard to qualify for a low rate consolidation loan that will give you a smaller monthly payment. You can consolidate debt with a second mortgage or home equity loan but again you will need good credit to qualify.
Bankruptcy is probably the solution of last resort for most people. Bankruptcy laws have changed over the past several years and you will be required to pay at least a portion of your debts if you have income and fail the Chapter 7 means test. Bankruptcy can damage your credit for up to a decade, making it difficult for you to buy a home or car and substantially increasing the rates you pay for insurance. In some cases, a bankruptcy can prevent you from getting a job or automatically disqualify you from professional licenses, dramatically impacting your ability to support your family.
Affect on Credit Scores
The majority of people who are searching for financial solutions to their credit card debt are already having problems making payments. You may find yourself tearing your hair out every month, trying to keep track of multiple credit card payments and trying to find the money to pay just the minimum payment. This rules out using the traditional debt reduction methods such as the debt avalanche or debt snowball.
If you are faced with unemployment or other unforeseen events that have decreased your income substantially in the past few years, you are not alone. Unfortunately, missed payments, late payments and a high debt-to-income ratio can have a devastating effect on your credit score. If you have missed payments and maxed out credit cards you have done most of the damage already to your credit score.
Here is the ranking of debt reduction methods and their negative impact on your credit score from least impact to most impact:
If you face the facts, using any debt relief program will make it difficult to get rid of credit card debt without hurting your credit score. On the bright side, consolidation and settlement allow you to rebuild your credit score after you paid off your debts. However, debt settlement can help you pay off your debts the quickest and save the most money. It takes 24 to 48 months for most people to complete a settlement program.
Although the impact on your credit score may be temporarily negative, you will quickly see improvement as you pay off your credit cards and your debt-to-income ratio improves.
Planning for retirement can be very difficult without having the proper consulting in place. Those that are going into retirement without a plan are in for a rude awakening, and may find themselves having to go through a huge change in quality of life if they did not conduct proper planning before retirement. There are a few things that need to be taken into account when planning for retirement including what your streams of income are going to be, whether or not you were going to look into financial planning services to help you through retirements, and also how you can improve your budgeting skills which are going to become infinitely more important when your streams of income are limited during retirement.
Streams Of Income
The best thing that you can do to ensure that your retirement is as comfortable as possible, is to look into how you can create additional streams of income through the investments that you make prior to retirement. Since retirement signals that your mainstream of income, the job that you had prior to retirement, is coming to an end, it is vitally important that you are able to produce other streams of income that can allow you to keep the same quality-of-life post retirement, and have a comfortable golden years. The investments that you make prior to retirement can help you to maintain comfort after retirement, and improve your overall wealth management.
Wealth Management and Financial Planning
When entering retirement, it is likely a good idea to look to Wealth Management Services and Retirement Planning services that can help you to better manage your finances when your streams of income are limited during retirement. Most individuals going to retirement with a set income, through the retirement funds that they have, Social Security, and any streams of income that are provided by investments. It is in your best interest to try to plan in-depth, and plan early, with the help of a financial planning professional, in order to ensure that you are in the best possible position come retirement.
Because your income is going to be limited during retirement, you want to make sure that you sharpen your budgeting skills prior to retiring. It will be vitally important that you have the skills to properly manage money and not overspend, in order to ensure that your retirement funds last as long as possible, and are able to provide you with the quality of life that you are accustomed to. Budgeting skills are something that you can learn on your own, but with the help of financial and retirement planning services, you can apply the use of tools and other strategies to help you improve your budgeting skills, and ensure that the funds that you have for retirement stretch as far as possible.
There are many things that need to be taken into consideration as you plan for retirement. Hiring wealth management services to help you through this pivotal time in your life can ensure that you go into retirement with the plan, and the tools that are required to execute it effectively.