How to Efficiently Deal with a Financial Emergency

It happens to everyone at least once — just when you think you are on top of your finances and your budget is flowing smoothly, disaster strikes. The size of the disaster may not be huge; it could just be a blown tire during your tightly budgeted vacation. Or it could be as big as the loss of a job, a house fire or a disabling health condition. Whatever your financial emergency, you can get through it if you have planned ahead and prioritize.

A big part of making your budget is saving for the unexpected. Most financial experts agree that everyone should have an emergency fund of at least one month’s expenses. Ideally you should have savings and investments that could support you for six months or more.

Have a “No Splurge Month”

Do you need to save some money for a big purchase or recover from a large bill you just paid? Perhaps you just want to gain better control of your spending. Having a "No Splurge Month" could be the answer for you.

A “No Splurge Month” is when you designate a month where you won't spend any money on anything that isn't absolutely essential. There is no spending money on anything you don't legitimately need. When done as a family, this is a great way to save some money and learn more about what you can really live without.

5 Ways to Make Your Salary Stretch Further

Living on a budget is not always an easy thing to do, especially when expenses will arise when you least expect them. But, even though it may not seem possible there are many ways to make your salary stretch further. Avoiding needless spending, comparison shopping and utilizing budget billing are a few ways to achieve this.

1. Avoid any needless spending.

• How many times have you gone to the store to pick up one or two items and left with a cart full? Sometimes it is easy to get drawn into sales that you did not know about and spend more than you wanted to. Most of the items are not necessary or needed at the moment.

• To help you curb unnecessary spending, either wait until you have a list of items to buy or keep yourself limited to the items you only need. Wants can be purchased at a later date as your budget allows.

7 Easy Strategies to Practice Self-Discipline and Frugality

Deciding to practice self-discipline and be frugal in your spending is one thing. Actually doing so is often quite another. Our old habits are hard to break. However, if you apply strategies to your spending, you will find it easier to practice self-discipline and frugality. Here are some easy strategies to get you started.

* Change your attitude about money. How you think about money determines the role it plays in your life. Stop thinking that you have to have the same things as everyone else. Instead, focus on what you really need instead of what you just want.

Top 5 Features of a Successful Budget

Budgeting seems simple enough, but when put into practice most people suddenly realize it is incredibly difficult to make and stick with a budget if certain factors are not developed. Successful budgets, no matter the size or purpose, all have a few common denominators: reality, goals, commitment, focus, and self-discipline.

1.  Reality

• Your budget needs to be tailored to fit your particular needs. Consider your income, debt, housing payments and utilities, insurance costs, food requirements, clothing requirements, transportation, activities for each family member, the ages of family members, and your particular financial goals.

• Do you need to budget semi-temporary expenses or long-term goals? Do you have plenty of income or are you barely scrimping by? Look at your own situation and seriously consider what money needs to go where to meet the needs and wishes of yourself and your family. Don’t forget unexpected and once-a-year expenses in your planning.
  
  

Discipline Yourself to Spend Less

No one wants to go into debt. We try to avoid it if we can, but we fall into the traps of credit cards and delayed payment specials so easily. Curbing our spending requires discipline and an honest effort.

As consumers, we have to learn to live within our means. This is more than having enough money in a paycheck to pay our bills. Financial security is having something in a savings account and money left over from our paychecks to use in an emergency if we need it.

Living paycheck to paycheck can be dangerous, especially if you have a family. Children get sick; cars break down. Taking money from the bills is not a wise decision, but if you are in a bind, you do what you have to do. The way to break this cycle is to spend less money each month.

8 Tips to Help You Beat Budget Busters

If you want to have control over your finances, a budget is essential. Knowing exactly how much money you have coming in each month and how much it will take to pay bills, buy the things you need and save a little, is the best way to prevent a financial meltdown. But it only works if you follow it closely.

Sometimes sticking to a budget is easier said than done. Everyone has a lapse every now and then, and while a couple of dollars won't make a huge difference, it can add up when it happens repeatedly. This will throw off your budget, and it could leave you struggling to come up with the money for the things you truly need.

By planning ahead and avoiding impulse buying, we can beat the budget busters. Here are some tips:

Setting Financial Priorities During Hard Times

Most of us have experienced times of financial hardship at one time or another. Sometimes it's because of layoffs or reduced working hours. Other times, it's due to large, unexpected expenses. But no matter what the reason, financial difficulties necessitate taking a look at our priorities.

When money is no object, we often spend it on things that we do not really need. We might go out to fancy restaurants every week, buy designer clothes or buy expensive high-tech toys for the kids. But when our disposable income is reduced, we must often give those things up to have enough money to pay the bills and spend on necessities.

7 Tips for Setting Up Your Christmas Budget

There are many ways you can set up a budget for Christmas. The key is to begin early. Since Christmas is only three weeks away, you will probably need to put your Christmas gift list together now.

Here are some tips:

Get Personal at Christmas and Save Money

With the Christmas holidays so close, you may be checking your budget to determine how much you can spend this year. Perhaps this may be the year that personalized gifts may be more appropriate in order for you to save some money.

Over the last several years, personalized Christmas gifts have become the norm rather than the exception. Certainly, this year you may be considering trimming down your list as well as coming up with creative presents you can give to your friends, co-workers, and family members.

The Cost of Not Having Health Insurance

One of the biggest concerns in our society is health insurance.  On the one hand, it costs so much of our pay to have a health insurance policy in the first place.  On the other hand, millions of people are living day to day without the umbrella of health insurance to cover them and their families.

These people are just like you and me.  They are not necessarily poor or destitute.  People whose jobs are part time may not be offered health insurance as a part of their benefits. 

This means that they must look for an independent policy.  Depending on their age, medical history, and other demographics, their independent policy may be more than they can afford on their salary.  As a consequence, they and their family go uninsured.

With the high price of premiums, it may cost several hundred dollars a month for health insurance for the entire family.  This means less money in the paycheck for living expenses.  Families have to make a determination of what is more important at the time.

Many people use the emergency room at the hospital as a doctor’s office.  When they have a serious health problem, they go there.  A community hospital accepts patients without insurance with their promise to pay the bill.  These bills can be high and payment can drag on for some time.

To combat the costs of uninsured patients, hospitals raise their fees for service to offset the cost.  These increased charges are passed on to patients with insurance.  Depending on what their health insurance company is willing to pay, that could mean a substantial hospital bill after your stay, even with health insurance.

Without health insurance, people cannot get the help that they need when they are feeling poorly.  Conditions worsen until they must go to the hospital.  Now, the cost is more than it might have been if the person had had the means to visit the doctor.

Children make up a good percentage of the uninsured.  When their parents can’t afford health insurance, they go uncovered as well.  Over-the-counter medications substitute for regular check-ups at the doctor’s office.  Childhood vaccinations are important for the future health of a child.  Children that don’t receive them are at risk for various diseases that the vaccines would prevent.  

Another health concern is pregnancy.  Those who have no insurance and can’t afford prenatal care are more likely to develop problems during their pregnancy, either with the mother or with the child.  Pregnancy may seem like an event that takes care of itself, but all sorts of things can happen during those nine months.  Being under a doctor’s care brings peace of mind and immediate help if something is wrong.

What is the high cost of not having health insurance?  It is increased illness, higher premiums and hospital charges, not to mention deaths.  This is a serious issue for which a resolution couldn’t come a moment too soon.

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Making the 4th of July Festive on a Tight Budget

There are so many things you can do and food you can make that doesn’t have to cost a fortune, but will make your 4th of July sparkle as if you spent a fortune! Below are some decorating ideas, food ideas and other inexpensive things you can do!

Decorating Ideas

Red, white and blue decorations and patriotic decorations come out before Memorial Day, so you should be able to find an abundance at your local dollar store.

Homemade 4th of July decorations are easy to make and you probably have some or most of the supplies you’ll need already on hand.

Here are some inexpensive things you can make using items you have on hand:

Craft Stick Flags

Paint 5 sticks red and 4 white (per number of flags you want to make). Let dry. Glue the painted sticks together in an alternating pattern by gluing them to one craft stick on the right side and two broken craft sticks in the middle and on the left side. Cut a small square of blue construction paper and color white stars using a white gel pen. When the glue has set, turn the flag over. Glue on the square of blue construction paper and glue another craft stick to the long craft stick on the back. Let the glue set.

Stars on a String

Cut out large stars using red, white and blue construction paper. Decorate as desired. Fold over one tip of each star and staple or glue to desired length of red or blue string. You can use these to decorate your base camp!

Festive, Yet Inexpensive Ideas for Food

Chicken: You can usually buy chicken on sale really cheap. So, before the 4th is upon us, be checking your local store’s weekly sales paper for chicken on sale, then stock up. You can make great bbq chicken on the grill.

Corn on the Cob: Summertime is the best time to get inexpensive corn on the cob. You can grill it in their husks right along with the BBQ chicken!

Watermelon: Watermelon is one of the least expensive foods for the amount you get. You can make watermelon salads, fruit bowls and other yummy side dishes that will fill your family and guests up!


Other things you can do inexpensively to celebrate our nation’s independence are:

• Have a backyard party and have everyone bring a dish to pass.
• Add sparklers to your burgers when serving them.
• Don’t pass up invites to friends or family who are having backyard parties and take a dish to pass.
• Don’t feel like you have to go all out with decorations. Simply using red, white and blue paper plates, cups and napkins will give your home a patriotic feel.
• Use a vase you already have and fill it with flags from the dollar store. Give one to guests as they arrive too.

Celebrating the 4th of July shouldn’t cost a fortune, especially in a recession! Using simple tips like the ones above will help you stick to your budget AND enjoy a festive Independence Day!

Ten Tips to Create, Prioritize and Manage a Budget

Mention the word “budget,” and people’s eyes tend to glaze over. Budgeting isn’t the most exciting activity in the world, and on the surface it is extremely limiting. We don’t like it when other people try to tell us how to spend our money, and even setting parameters of our own may seem too much.

What many of us do not realize is that a budget is the ticket to financial freedom. It restricts what we spend each month, but in the long run it allows us to get more out of our money. Instead of frittering funds away on things we could comfortably do without, we can save up for emergencies as well as things we enjoy.

Here are ten tips for creating a budget, setting priorities and keeping tabs on spending.

1. Be realistic. All too often, we create the perfect budget on paper, only to completely blow it in practice. This is frequently because we are not realistic about our expenses. It may help to save all receipts for a month before you start on your budget. That way you can evaluate how much you’re really spending and avoid budgeting too little for any given item.

2. Remember the little things. Eating out every day instead of packing your lunch might not seem like a big deal, but it can really add up. The same is true for many of the habits we have. Cutting back where practical can save you more money than you might think.

3. Lower your bills when possible. A good place to start is with your cable bill. Do you really need all of those movie channels? What about your cell phone bill? Would a less expensive plan meet your needs? Knocking a few dollars a month off of your bills could leave you with hundreds of extra dollars each year.

4. Get the whole family involved. A budget affects the entire household, so everyone should have a say. You may have to make changes that everyone doesn’t agree with, but they will be more likely to accept them if you listen to all input. Family members may also have ideas that you wouldn’t have thought of on your own.

5. Give everyone an allowance, not just the kids. Setting reasonable limits for discretionary spending will help prevent your budget from being derailed.

6. Make sure the necessities always come first. Budgeting for entertainment and other wants is important, but if push comes to shove, food, water, clothing and shelter are the most important things. Budget for these and the things that enable you to work (such as transportation) first.

7. Include savings in your budget. Saving up some money for emergencies is crucial for every individual and family. Try coming up with an amount to save each month and include it in the budget before any non-necessities.

8. Keep track of all expenditures. Save receipts or write down every expense so you can compare your actual spending to your budget. If you spend less money than budgeted, consider allocating more to savings. If you spend more money than you planned, you need to either watch your spending more closely or make adjustments to your budget.

9. Avoid using credit cards irresponsibly. Buying on credit will result in less spending of money in the short run, but you will have to pay it back with interest unless the balance is paid in full each month.

10. If you get extra money, use it wisely. Consider putting it directly into savings or using it to pay down debt. Spending it on something you want might feel good, but that doesn’t help your overall financial picture.

The Secret to Finally Paying Debt Quickly

If you've struggled with debt for any amount of time, you know how it can feel like you're in a big black hole, you just can't seem to dig yourself out of. Balances never seem to go down and you need to keep tapping into credit cards just to make ends meet.

There is plenty of debt advice out there and you may have tried things like debt consolidation, making large payments to your debts to try to pay them faster and other methods that just don't seem to work. Things just keep getting more and more difficult to manage.

But it really doesn't have to be that way...

If you've been able to keep up with your minimum monthly payments until now, there is a solution for you. And it's remarkably simple if you follow the appropriate steps laid out for you.

I'm talking about the "Pay Debt Quickly Kit" that shows you how to:

- Pay debt off faster without having to make any large payments.

- Get what you want from your creditors to pay off your debt faster and even improve your credit score.

- Make drastic changes in the way you think about and handle money without feeling like you're deprived in any way.

The kit includes everything you need to get to debt-free faster. From software that helps you quickly and easily calculate your precise debt-free dates to strategies to take control of your finances and even work with your creditors so that you benefit, instead of them - this kit has what you need to eliminate your debt.

Learn more & get debt-free at: Pay Debt Quickly

Everything is available for instant download and you don't have to wait for anything to come in the mail. That means you can start sleeping better and stop worrying about your debt, starting RIGHT NOW.

8 Frugal Christmas Gift Giving Ideas

With Christmas less than two weeks away, you have probably made your list of gifts for family and friends. Perhaps you have also decided to reduce the amount spent per gift this year, and that’s ok. Frugal gift giving doesn’t necessarily mean cheap, but rather thoughtful and creative gifts that your recipients will appreciate and treasure.

Here are some ideas and suggestions on how you can present wonderful gifts this Christmas without breaking the bank.

1. If you love to bake, why not put together a gift basket filled with homemade cookies and muffins as well as a variety of teas. You can purchase baskets at any dollar store, as well as the wrapping to go along with it.

2. Another gift idea that has always been popular is a basket filled with bath and body lotions, body wash, and scrubs. These items are very affordable and you can create a unique basket filled with scents that are sure to please any recipient.

3. Do you have a friend or family member who loves coffee? If so, you can purchase a box of sample coffees. Add some homemade muffins and present it in a gift basket as well.

4. Aromatherapy candles are also a big hit. Add CDs that can calm and soothe such as sounds of nature or the ocean. You can find these affordable items at dollar stores and online for half the price.

5. If you make your own homemade jams and jellies, why not put together a gift basket filled with these items along with homemade muffins and some green tea. This is a healthy and inexpensive way to say you truly care about the recipient’s well being.

6. Perhaps you have a friend who loves books. There are plenty of books on a variety of topics you can buy at half the price at bookstores or online.

7. How about a large soup cup filled with hot chocolate mix and marshmallows for those cold winter nights? You can use your creative ideas to make this a most unique “basket” of treats.

8. Gifts do not have to be expensive. It could be a picture of you and your friend placed in a lovely frame, a homemade hat and scarf for the winter or even a CD of favorite Christmas music that you put together for that special friend.

Frugal Christmas gift giving not only saves money, but allows you to really think about a gift that is unique to the person. It shows you have taken the time to select or create those items you know will be appreciated by a friend or family member.

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How to Handle a Recession

Are we in a recession? Considering everything that has been in the news lately, one can say with confidence we are indeed in a recession.

Not too long ago Nouriel Roubini, a financial expert, predicted that only two major banks would be left after the housing crisis and the economy returned to normal. It was a prophetic prediction.

What does this recession mean for you and me? It means we have to tighten our bootstraps (if we haven’t already) and begin planning for any eventuality.

While economists comment that the last two recessions lasted for eight months respectively, it is no comfort to learn that the housing crisis has not yet reached bottom and more and more companies are closing down leaving thousands of people unemployed.

Wages have decreased, more families are in debt than ever before, health-care costs continue to rise, and our grocery bills have eaten into our household budgets significantly.

In order to alleviate the burden of all these factors, the best advice economists can offer is to take a fiscally conservative stance on our spending habits. Here are some additional suggestions:

* Stick to a monthly budget

* Refrain from buying expensive items on credit

* Set up a fund for emergencies (at least two months' income)

* Try to add the maximum amount allowed to your pension/retirement fund

* Stay healthy with a proper diet and exercise program (This is a preventative measure that will reduce the cost of prescription drugs and other health-related costs)

* Pay down debts

* Purchase with cash

* Buy groceries in bulk utilizing coupons whenever you can

* If you have teenage children who are receiving an allowance, determine if they can apply for a part-time job after school

* Increase your deductibles on car and homeowner’s insurance

* Keep your automobile well-maintained

* Winterize your home and use energy-efficient appliances and light bulbs

* Walk whenever possible instead of driving to a local store

Anything you can do to reduce the amount of expenditures can only help you through this economic downturn. In the meantime, stay calm, focus on your budget, and save as much as you can.

What Is a Recession?

Image by publik18 via FlickrIn its simplest terms, a recession occurs when there are “two consecutive quarters” of negative growth.

While most economists have been fickle in utilizing the term, it is nonetheless clear that our economy is in the throes of a recession. More importantly, however, is the fear that the recession will subsequently turn into a depression.

How does a recession occur? Well, when there is not enough supply to meet a specific demand (as in the case of oil), prices rise and spending becomes stagnant. This, in turn, causes companies to decrease expansion. No expansion means a decline in the work force and, consequently, unemployment rises. Consumer confidence dissipates, prices of homes decline, and everyone becomes affected.

It can also be suggested that the sub-prime mortgage crisis had a direct impact on the current recession. One can use the dot.com analogy to preface the seriousness of our current crisis. Remember when the stock prices for the internet industry increased beyond anyone’s imagination? Most people were buying these stocks because they felt the return on their investment would be phenomenal. It was - for a time, until the market turned sour on internet stocks and over five trillion dollars was lost, thus inviting a recession that affected companies worldwide.

Similar to the brokerage houses that were making money hand over fist today, the only people who profited from the internet stocks were the CEOs of these companies. Shareholders and everyone else were the losers.

Recently, economists have ascertained that the market will have five negative quarters. Others have stressed the importance of having on hand at least 18 months' worth of savings. Still others, concerned about the Rescue Plan’s execution, are worried that we may be headed for a depression.

Obviously, not everyone agrees as to what will eventually occur. They do agree, however, that until the banks' lending ability is alleviated, the stock market’s volatility will continue.

This global Rescue Plan was designed to give banks enough money so that they were not tied down by these toxic mortgages that prevented them from lending to one another. This is also why it is currently very difficult for an individual to obtain a car loan, college tuition loan, or other type of loan from banks.

Unless and until this plan begins to have a significant effect on the global economy, thus thwarting a total collapse of our lending institutions, this recession will continue. In other words, we are faced with economic uncertainty and must do what we can to ensure we are prepared for any eventuality.

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Ten Tips for Budgeting Your Holiday Season

Image via WikipediaThe tree isn’t the only item that will be trimmed down this December. Here are ten tips for budgeting your holiday season to enable you to not only enjoy the time spent with your family and friends, but make it an affordable time as well.

1. If you usually give presents to sisters, brothers and their children – try and exchange presents with just your nieces and nephews. This can save quite a bit of money in the long run.

2. Shop early – very early. Begin holiday shopping during the summer months at stores that have sales every week.

3. Make your holiday list ahead of time. Decide how much you are willing to spend for each person and stick to it. Keep in mind that in January you will be getting those bills and may find it difficult to pay them off.

4. Pay off all your holiday expenses beforehand. You can accomplish this by shopping early and paying with cash. If you must use a credit card, pay it off when you receive the bill. This will decrease the amount of bills you receive after the holiday season is over. Moreover, you will feel terrific!

5. Buy ornaments, wrapping, bows, and decorations early. How early? The day after Christmas is when every card and ornament is on sale for as much as 50% to 75% off. If you can make it a point to buy these items after Christmas, you will have enough to carry you through the next two or three years.

6. Open a Christmas club account at your bank. It’s very easy and a great way to save for the holiday season. You can begin in February and put away as little as $5.00 a week. By October, you will a nice little check to use to purchase gifts.

7. Make your own decorations. This can be a wonderful experience for the entire family. Everyone can pitch in and make ornaments for the trip, wrap gifts with newspaper, or decorated bags. Make holiday cards on your computer, send out holiday cards through the internet, and make your own holiday gifts as well.

8. Buy gifts online this year. It not only saves you time standing on long lines at department stores, but you can save money as well. In fact, you are probably receiving emails from stores right now who are offering discounted merchandise. Check it out!

9. Use coupons to buy holiday gifts. There are a myriad of online coupon sites wherein you can save a bundle on specific items.

10. If you have set up a budget for gift giving, why not give gift cards. They have become very popular over the last several years. In this way, you can set a limit to the amount you wish to spend and, at the same time, the recipient will be able to buy a gift they need or want.

The holiday season is a time of reflection: thinking about all the people in our lives that we love and cherish. A present is just the icing on the cake!

6 Ways to Avoid Holiday Debt

While we all enjoy the Christmas holidays, once the bills begin to arrive we are usually brought back down to earth with a bang. If you want to avoid holiday debt, here are some tips.

1. Open up a Christmas club on January 2nd. You can contribute five or ten dollars a week to the club and by October you will either have $200 or $400 to spend on Christmas gifts.

2. Avoid using your credit card to buy gifts. This only adds to your ongoing debt and will just leave you stressed out after the holidays. Pay with cash whenever possible. If you have to buy an item with a credit card, pay the bill off as soon as you receive it.

3. A Christmas budget would be a great idea to decrease the likelihood that you will overspend on gifts. Make a list of the friends and family members you intend to give a gift to and assign a dollar amount. It is important to stick to the budget.

4. Begin Christmas shopping earlier in the year. There are always sales every week – take advantage of them. You can even buy two or more of the same item in case you have to give a gift you weren’t planning on.

5. If you like to shop online, use one credit card. There are many online coupon sites that offer great savings throughout the year. Utilize the coupons, check out the sales, and make your purchases. Remember to pay the credit card bill balance as soon as possible.

6. Perhaps Jane and little Joey want something very expensive this Christmas. If you can’t afford it, don’t buy it. With the list of gifts they will present to you, there is sure to be some items you can afford.

Holiday debt can be avoided if you start with a Christmas budget, put aside a few dollars every day, or open a Christmas club. Instead of buying a cup of coffee everyday, put that money towards Christmas.

Let’s be honest, buying items with a credit card is very easy to do these days, especially with internet shopping. But if you shop early, you can certainly pay off the debt before the holidays and start the New Year with a “bang” instead of a whimper.

How Not To Go "Money Mad" on Black Friday

You have made your Christmas list, checked it twice, and now you are prepared to venture out on the most important day of the year – Black Friday. Wait! There is just one word of caution – do not go "Money Mad" on this sales day!

Who doesn’t love a sale?

Who dislikes paying off debts?

In this case, the two are not mutually exclusive. Shopping on Black Friday, although you can enjoy savings, can also put you into debt if you are not careful. Here are some tips to help you stick to your Christmas list and your budget:

* Check the prices either online or in the newspaper before you go.

* Clip out the coupons that offer an all-day discount.

* Stick to the budget you've set out and the price you've assigned for each gift.

* Bring just enough cash to cover the cost of the gifts.

* Use a debit card, or if you really have to use a credit card, stick to the amount you set out to spend and go no further.

* Arrive early in the morning.

* Bring a friend to not only help you find the items, but also to deter you from buying anything that’s not on the list.

* Check out the store before Black Friday and locate the items you intend to purchase. You may also wish to check if they can be held for you until Friday.

* When you arrive at the store, go directly to the department where your items can be found.

* After you have finished all your shopping, leave immediately. Don’t stop to browse or look for something to buy for you. You and your friend can have a leisurely lunch to relax and de-stress.

Yes, the sale items will be enticing and tempting, but remember that the bill will arrive in the mail the following month and you will have to deal with the consequences if you overspend.

Here’s another thought to ponder. Are these sale items marked up specifically for Black Friday? Consider how much you would pay for a blouse on sale if you shopped in August. Department stores are in the business of making money. In order to do so, they are certainly not going to sell an item for no profit.

If you really want to save money, time, and stress – start your Christmas shopping in the early spring or summer. You can shop on any sale day when the stores are less crowded and you have time to consider the purchase.

In fact, there are millions of people who have boycotted Black Friday altogether. Perhaps they know something we don’t!