| |
| |
|
Personal Finance Information |
|
|
|
A Fresh Start for Family Finances in 2005
While 40% to 50% of us make New Year's resolutions on January 1-a ritual that has existed since ancient times-approximately 60% to 80% of us have already broken them by the end of February, according to researchers. It's still not too late, however, to reset the trajectory on your family's finances, experts note. 1. Build a Budget If you haven't already done so, create a realistic budget. Approximately 85% of your income should be set aside for necessities like housing, food, health care and clothing, according to the professionals at VISA USA. This leaves 15% for entertainment-and something many consumers completely neglect: savings. 2. Distinguish "Needs" from "Wants" Make sure you have a clear understanding of what you need in life versus what you want in life. You need to pay for the antibiotics when the doctor diagnoses a respiratory infection. You don't need to buy the latest movie released on DVD to aid in your recovery. You need to pay the rent or mortgage. You don't need to buy the lovely accent pillows that beckon to you from the interior design boutique. Always separate the needs from the wants-particularly if money is tight. 3. Monitor Your Spending To see what you really spend each month, keep a running log of all purchases-no matter how small-for a full month. This will give you a visual display of where your money goes after you deposit your paycheck. You may find that the $3 cup of coffee that starts each day adds up to $90 a month-a pocketbook pincher that may prompt you to buy a pound of coffee beans at the local market and grind them yourself. That $90 blossoms into $1,080 in savings at the end of a year. 4. Create an Emergency Fund Life is full of surprises-both positive and negative. If you happen to lose your job or suffer an illness that temporarily sidelines you, you will need cash reserves to support you during the rough months. "In most cases, consumers who find themselves dealing with a financial hardship are unprepared and have not saved for unexpected situations," says Diane Giarratano, director of education for Novadebt, a U.S. financial management service agency, with multiple locations, that provides credit counseling, budgeting and financial education. 5. Educate Yourself When you attended high school or college, you studied history, mathematics, language and science, but there was probably no course in basic money management. If you need help in meeting a financial goal-whether it's buying a home or reducing your debt-take advantage of community resources. "Consumers should feel free to contact a good credit-counseling agency to obtain free advice with regard to establishing a budget or to learn how to handle unexpected hardships," Giarratano says. 6. Don't Become a Victim Identity theft has become an international epidemic, so be extremely cautious when giving out your credit card or personal identifying information. Monitor your credit card bills carefully for unauthorized charges, and immediately report suspicious activity to the issuing company. "Identity theft is often an inside job," warns Robert L. Siciliano, a personal security expert with Boston, Massachusetts-based SafetyMinute Seminars and author of "The Safety Minute." "Lower-level help desk workers and frontline call center employees often have access to all our personal information in their databases," he says. "What are you doing to protect yourself? If you're not paying attention, you could be a victim, too." And when a disaster strikes, such as the recent killer tsunamis in South Asia and East Africa, be wary of scammers from fake charities before reaching for your checkbook. Unfortunately, there will always be unscrupulous individuals who seize such opportunities to profit from others' misfortune. "Avoid using your credit card to make contributions," advises James Walsh, author of "You Can't Cheat An Honest Man: How Ponzi Schemes and Pyramid Frauds Work?and Why They're More Common Than Ever." "Even though this can be a convenient way to proceed, many crooks are looking for credit card numbers," Walsh says. "They will press strongly for 'immediate support.' Don't rush." Instead, initiate the call yourself, and select a reputable charity. "Go with recognized names," Walsh says. "No organization is perfect; even the best-meaning groups occasionally misallocate money or fall victim to abusive employees. But larger charitable groups-like the Red Cross, the United Way and Catholic Charities-have the mechanisms in place to audit their people and performance." Charitable contributions are tax-deductible, so keep good records of all donations-including small cash gifts. --------- Fox Symes assists all Australians discover the truth about their debts and how they can rapidly reduce them. There are methods available to the Australian public and you can discover how to use these to assist you in reducing your debt with a free phone consultation from Fox Symes. Visit http://www.foxsymes.com.au or contact them directly on 1300 361 204.
MORE RESOURCES:
AME Info, Abu Dhabi, United Arab Emirates, personal finance briefs - Trading Markets (press release)
Personal-Finance - Google News |
|
|
|
RELATED ARTICLES
Developing a budget? Watch out for Those Budget-Bursting Gremlins If you've developed a household budget to get your spending back in line or to just reduce stress, good for you! Creating and sticking to a budget isn't easy by all means. But it represents the best way by far to manage your finances so you can relax and worry about other things. Financial Readiness: Preparing for BRAC (Base Realignment And Closing) The recommendations for military base closings have been released and the news is not good. If the recommendations are accepted, you will lose your job. Money Matters - Really! One of the biggest challenges facing black RELATIONSHIPS today are finances. Many people mistakenly feel that money does NOT matter. Succession Planning Have you ever thought about what you are going to leave your children when you pass from this earth? Wouldn't it be a great feeling to be able to give them a really good head start in life - without actually spoiling them?It really doesn't matter how old you are, it's something that you need to be thinking about and planning for now. In the process of planning your inheritance and blessing your children, you are really making YOUR life better and more financially secure because you'll enjoy these benefits before you pass them on. 10 Quick And Cheap Ways To Cut Your Heating Bill When you received an energy (heating) bill last winter, were you afraid to open it? Granted that we have a home with a lot of really big windows, but we saw energy bills last winter in the hundreds of dollars. Your bill probably wasn't that bad but I'm guessing that it was a lot higher than you would have liked. The Good and the Bad of Money Management Good money management needn't be difficult. In fact, there a number of easy steps recommended by most financial professionals to help manage your finances better. Budgeting Tips to Save Real Money Sticking to a budget can be difficult, but with so many demands on your finances you have to be extra cautious. TV ads are constantly bombarding the airwaves with messages that you need to buy this or you must have that. Knowing Me, Knowing You: Why ID Protection Plans Are Flawed For Fraud ID theft is a major consumer concern, though there is apparently much confusion about proactive protection initiatives and apparently safe and unsafe spending behaviour. For example, many consumers remain reluctant about shopping online, but they may still give out personal details over the phone in a cold call, or they may have redundant or dormant accounts and financial products which are susceptible to fraud. Estate Planning Basics You have probably accomplished a great deal with your life. Over the years you have worked, planned and saved. How To Free-Up 10% to 15% of Your Income Would you be interested in freeing up 10% to 15% of your current income? Just imagine what you could do with this money. You could pay down your debts, increase your savings, or work toward that next important purchase that you have in mind. The Benefits of Banking Online How many drawers did you have to look through to find a bank statement the last time you needed one? Chances are you did not lay your hands on it as readily as you would have liked. If that is a familiar scenario in your home, help has arrived in the form of online banking. Government Grants - Beware of Scams As the saying goes: "Buyer Beware". If you see ads claiming you qualify to receive a "free grant" for education, to start a home business or to payoff unpaid bills, be wary. 10 Money-Saving Tips 1. If you have your haircut every 3 weeks, try going 4 or 5 weeks in between haircuts. Money Matters: Strengthen Your Marriage by Putting Finances in Order Did you know that 43% of all married couples argue over money issues, making it the major reason couples fight? If you and your spouse handle money differently, now is the time to talk, establish expectations, and draw up a financial plan.Money is a very big part of a marriage. Budgeting -- The Critical Flaw That Causes Most Budgets to Fail Budgeting. It's a word we're all familiar with. Single Mother and Learning how to Save Saving may seem easier if you were saving for a new car, or a vacation however when it comes to saving in general it may prove to be more challenging because you may not necessarily feel you are receiving a reward from it. However saving pays off, especially as a single mother. Accessing Funds You Never Knew You Had- Household Utilities and Mortgage Expense Reduction Plan For most of us the process of getting out of debt and pursuing a venture that would create an income stream leading to early retirement seems just a pipe dream. It goes without saying; it takes money to make money. Chex Systems - Why Every American Needs To Guard His Checking Account With His Life Most Americans have been brought up to be concerned about a good personal credit rating, because of the role a positive rating can play in your long term plans; purchasing a home, buying a car, getting a business loan, etc. They have also been made to understand that the premier organizations that pretty much hold the key to their financial futures are Equifax, TransUnion and Experian. 5 Steps to Healthy Spending Habits Next to our physical health most of us are primarily concerned with our financial health, and with good reason. Although our intentions are usually great our follow-through and discipline generally isn't. Personal Finance - Why You Should Compare, not Despair Sorting out your personal finances can be a tricky and exasperating time. Whether you are looking to obtain money through a loan, protect your finances with life insurance, medical, travel or car insurance, save some money through an individual savings account (ISA), apply for a credit card or a mortgage, change a telephone or fuel utility supplier, or simply decide what the best current account is for your needs, the choices are seemingly endless as well as being extremely complicated.
|
| home | site map |
| © 2006 |