Make A Financial Resolution for the New Year
December 19, 2011
With the New Year approaching, lists of resolutions are starting to get longer, but have you started yours yet? What is it going to entail? For many, the New Year is a way to start fresh, and one of the more popular resolutions has been, and will remain, to fix your personal financial outlook. Whether you are looking to get out debt, or just looking to save a few extra bucks this year, you need to do more than just say you’re going to change. An effective method is to create a strategy to do this.
The reason many resolutions fail is because people often do not hold strong to completing the task. There is often nothing to look back on to stay the course because most resolutions are verbal commitments to yourself. By writing it out, and creating a game-plan, you can then follow steps that will lead you to success. This is most true when trying to resolve your financial life. Here are a few points to help out:
- Have a notebook handy, or a document of some sorts which can act like a financial diary, and write your goals down.
- Determine where your debt is, and how much you have.
- Create a budget.
- Eliminate all unnecessary costs. (This one can be difficult, but you have to be stern with your spending.)
- Keep track of all your spending habits. (Could be a dollar on your credit/debit card for a pack a gum, or a a couple hundred for a plane ticket. Whatever it is, make sure you track it by writing it down, and of course pay it off as soon as possible.)
- Negotiate your debt.
- Analyze your spending habits, and revert back to your initial goals and game-plan to stay on track.
You won’t be alone this year if you are looking to get your financial life back on track, but don’t be one of the many that doesn’t stick to it. Set your mind towards your goals, and if the tips above can help you achieve them, use them. If you would like more help in the matter, let us know. We would love to talk with you.
Here is to the New Year, a clean slate, and to you regaining your financial future.
Happy Holidays!
Financial New Years’ Resolutions
December 19, 2011
What happened to 2011? 2012 is almost here and it’s amazing how time flies. Think back to this time last year, what was going through your mind then? Did you make some financially related new years’ resolutions last year only to see them not be reached? How do you make sure that you reach your goals this year? Remember that most people don’t keep most of their new years’ resolutions every year, so you’re not alone. Financial resolutions can be the toughest ones to keep, so here’s some advice on how to get them done this year.
Simplify Larger Goals
The main key to reaching financial goals is to set them so that it is realistic to think they can be reached. A lot of times thinking about financial issues and goals can be overwhelming. You have the best of intentions but you don’t know where to begin. For example, you might say, “I want to get out of debt this year.” Break that statement down. Ask yourself; is it realistic to be able to totally pay off my debts this year given my current budget? If the answer is no, you might want to set a more realistic goal. Maybe you could say, “I want to reduce my unsecured debts by 25%.” Now that goal becomes much more attainable. And, if you’re able to surpass your goal, you’re going to get a boost by achieving what you thought was realistic.
Specific Is Terrific
If you have a goal in mind, and you don’t have specific actions planned out to meet that goal, you’re already setting yourself up for failure. Try to think of specific actions that you’re going to use to reach your goals. For example, your goal might be to pay off some debt this year, but how are you going to go about doing that? Try to be more specific like saying, “I’m not going to pay any late or overdraft fees this year.” Then you can get a calendar for the fridge to mark your due dates. Be specific not only about the goals themselves, but also in the actions needed to attain those goals. It will help you to be more successful.
Simple and specific goals are much easier to follow and attain than goals that are not. So begin where it’s easy and then start pushing yourself in 2012.
Black Friday Sales
November 16, 2011
Black Friday shopping, it’s not for the faint of heart. To fully succeed on Black Friday, you must have a strategy and you must execute it flawlessly. Black Friday success takes time and preparation.
Shopping on Black Friday has gone beyond normal holiday sales. Stores are opening at midnight with doorbuster deals. Limited numbers of items are available at reduced prices that send shoppers to the stores on Thanksgiving Day to wait in line. The deals can be lucrative, but you don’t have to give up your turkey to save money.
If you’re going to shop on Black Friday, start your research now. There are numerous Black Friday websites that offer sneak peaks at retailers’ Black Friday ads. Check them out. This will help you not only compare prices, but also determine your list. You don’t dare go shopping on Black Friday without a list.
Your list should be as detailed as possible. Include everyone you’re shopping for, what you plan on buying, the store where you plan on buying it and the price it’s listed at in the ad. In your pre-shopping research, you should be able to compare prices and find what store has the best deal.
The next step in your strategy is determine where you’re shopping and in what order you’ll be hitting the stores. Review your list. Are there any doorbusters you’ll be buying? If so, be mindful of the time the prices will be available.
So you have your list, you have the order in which you’ll be going to stores. There’s still some research to be done. Get a newspaper on Thanksgiving Day. Review the published ads. In most cases, a printed copy of the ad is not available online….usually the preview sites list the prices of items. Look at the printed ads to determine if you’re still interested in the items. Also, take the ads with you. You may see something when you’re out shopping and want to check to make sure that’s the best price going.
Here’s some practical advice on executing your Black Friday shopping plan:
- Be prepared for long lines. It can take hours to get to the checkout.
- It’s worth the wait for a shopping cart.
- Dress appropriately. You may have to wait outside of stores.
- Do a quick review of the store’s layout. Is it possible to pick up the items you want, while you are waiting in line?
- Be pleasant with your fellow shoppers. Have fun. If you’re stressed, Black Friday shopping is not the place for you.
Black Friday shopping may not be the place for you. If not, in some cases, stores offer the same deals online, but there may be shipping costs. If you plan on doing online shopping, it might be better to wait until Cyber Monday, the Monday after Thanksgiving. Usually retailers offer special online only deals and sometimes include free shipping.
Whatever your shopping method may be, remember it’s the not the gift you give or receive that make the holidays special…it’s the time spent with family and friends.
The War Against Car Costs – 8 Tips to Save You Money
October 31, 2011
If you are looking for ways to save money on car repairs it is a good idea to start with proper maintenance. Keeping up with your maintenance schedule will keep your car running longer and will comply with your warranty in the event that something does happen.
- Rotate Your Tires
Rotating your tires will make sure that there is even wear on all the tire surfaces. This will result in your tires lasting longer and reducing the likelihood of a blowout or other tire damage. Most tire warranties require that you have your tires rotated.
- Change Your Oil
An oil change should be done every 5,000 miles on average. Oil changes shouldn’t cost your more than twenty dollars and it will allow your engine to stay clean and free of gunk build up.
- Annual Car Inspection
Not only is this required by law, but it is a good way to make sure your car is running properly. A mechanic will go through and make sure the car is in proper running shape and is good with its emissions. Catching a problem early enough could save thousands.
- Respond Early To A Check Engine Light
It is most likely a small repair, so get it done. A blown fuse now could turn into a blown gasket later, so get it checked out ASAP.
- Check Your Fluid Levels
Make sure your oil is at high enough levels and that you always have enough coolant. Not enough oil and coolant can cause the engine to seize up, or overheat.
- Test Your Battery
Checking on the battery can save you money in the long run. A solid battery costs around 50 dollars and can save you from having to pay to be towed to a body shop.
- Inflate Your Tires
Not only will proper tire inflation improve gas mileage, but it will save you from having a flat, or a blowout due to improper inflation.
- Check Your Belts and Fluids
Make sure that your timing belts and engine fluids are checked regularly and replaced every 60,000 miles or so. This will keep your engine running smoothly and help you to avoid costly repairs.
Proper car maintenance is just a routine part of owning a car. Failure to do so can result in major repair costs and headaches down the road. Routine maintenance is easy, so not doing so is not an excuse.
The Pros and Cons of Renting Vs. Buying
October 21, 2011
Renting Vs. Buying
The debate over whether it is best to rent or buy a property has been on-going for decades. Everyone has an opinion, but no one can give a definitive answer as to which is best. Each option has its own pros and cons.
Renting
Pros
No Maintenance
When you own a home, you are responsible for all the upkeep. When you rent, however, you don’t have to worry about things breaking down or the roof leaking. If something goes wrong, you call the landlord.
Mobility
It is easy to get up and move when you rent a property, while Homeowners have to worry about selling their house.
Less Out-of-Pocket Cost
Rental prices, especially for apartments, are often much less than a house payment. Renting can save you thousands or even tens of thousands of dollars!
Cons
Forget About Remodeling or Decorating
Generally speaking, renters aren’t allowed to even paint their units, much less make more extensive changes. You can forget about changing the carpets, putting in new ceiling fans or even changing the blinds.
Someone Else’s Mortgage
If you are renting, you are paying someone else’s mortgage and property taxes. He or she owns the property and can sell it at any time. You are essentially financing their investment.
Buying
Pros
The Mortgage Interest Deduction
Every penny of interest you pay on your mortgage is tax-deductible. This can amount to thousands of dollars of savings, especially in the early years of a loan.
It’s an Investment
When you buy a house, it is yours. You are free to sell it or rent it, as you see fit. Once you pay off the loan, you will never have to make a house payment again. All you will have to worry about is paying property taxes and insurance.
Modifications
You can do anything you want to a property that you own. You can add on rooms, paint, redecorate, remodel the kitchen, or anything else you so desire.
Cons
Maintenance
As the homeowner, you will be responsible for all maintenance. When the plumbing breaks at three in the morning, you are the one who will have to foot the bill. You will have to pay for HVAC work, roof repairs, and a thousand other things that all add up.
Lack of Mobility
You can’t just up and go when you are a homeowner. If you decide you want to move to another city or state, you will have to either sell or rent your house. This can take months.
Market Uncertainty
Eventually, you will probably want to sell your home. It may be worth more or less than it was when you paid for it, but if you don’t have enough equity to cover commissions and closing costs in addition to the principal, you will have to cover the difference out of pocket.
Renting and buying each has its own merits. The one that is best for you will depend on your lifestyle and personal circumstances. Think long and hard before making a commitment!
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