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Many financial advisors are fond of explaining to clients how, for all intents and purposes, the most essential concepts and advice relating to personal finance are so simple that they can fit on a single, standard-size index card. In terms of the most basic and straightforward advice, there are few who would disagree with this notion and it certainly seems to be intuitively true that a practical approach to financial planning ought to be entirely uncomplicated. As the Groza Learning Center might point out, it is not often made clear by those fond of this particular maxim whether or not any of the information included on the index card will ever have to be replaced or otherwise updated.
The overwhelming majority of educators would be quite likely to agree that education, just like finance, requires an ever-changing approach in order to yield the best possible outcome. While the same basic principles will remain similar as time goes by, adjustments will have to be made and changes implemented based on the development of new and more effective practices and strategies. The same is true in finance, where the principles may remain largely unchanged but will have to be reviewed and adapted on a regular basis in order to generate the best possible outcome.
If, for example, an educator were to keep the same index card in his or her back pocket for the entirety of a teaching career, it is quite likely for that teacher’s students to be adversely affected by the lack of educational adaptation when compared to students of a teacher who has adapted his or her approach over time. Education, regardless of the subject matter, should always be considered an ongoing process.
When people begin to struggle with their personal finances, there is an interesting and completely counterintuitive psychological effect that is sometimes referred to as the “Ostrich Effect.” The term is based on the erroneous belief that ostriches, when confronted with danger, bury their heads in the sand as a defense mechanism. As it relates to personal finance, the Ostrich Effect refers to a behavior in which people begin to completely ignore their finances due to the presence of difficult circumstances.
Obviously, difficult financial issues must be addressed head-on and sometimes require creative strategies for cutting costs, so figuratively burying your head in the sand is the worst possible approach. It wouldn’t be wise to ignore the need for roofing Phoenix in the hope that the problem will just go away, as it should be obvious that a small roof leak will only expand and cause greater damage the longer it goes unaddressed. The same is true of personal financial matters.
For some, it may feel better to ignore the problem and delay the stress it will surely bring in relatively short order, but the simple truth of the matter is that getting your finances in order as quickly as possible is the only intelligent approach. Fortunately, accomplishing this is actually not all that difficult, as many people have unnecessary expenses (most of which they are surprisingly unaware of) that can be eliminated to save money now and in the future. Anyone struggling with their finances should take the time to work out a solution by considering some of the strategies that follow.
Eliminating Unnecessary Expenses
“Unnecessary expenses” is a phrase that likely evokes visions of the money wasted dining out at nice restaurants or on the vehicle that includes a monthly payment that increasingly feels like a millstone. If these are among your actual expenditures, then you have plenty of places to cut costs. Cut down on restaurants and make more meals at home and, if possible, sell the vehicle and find something more practical that better suits your budget. After all, it is most important that you are able to get to and from work without breaking your budget in doing so.
The reality is that many of the truly unnecessary expenses are not so easily recognizable. When you evaluate what you are spending each month, consider the costs associated with your banking. Does you bank charge you each time you use your debit card or levy a monthly fee if you do not use it enough? If that is the case, consider researching banks that don’t charge so many fees and have programs in place that reward you for banking with them instead of penalizing you.
The same is true of other financial professionals, as various fees and charges can quickly eat away at your return on investment. Simply take a few moments to evaluate whether or not your investment strategy is as efficient as it should be.
Taking Charge of Credit Card Debt
There has been a lot of talk about interest rates going on the rise in the near future, and credit card interest is one of the most unnecessary expenses imaginable. In 2015, the average household paid an astonishing amount in interest, with the figure of $6,658 demonstrating just how wasteful it is to carry credit card debt for any extended period of time.
If you have sizable debt and are struggling with your finances, one of the smartest strategies is to focus on eradicating the cost of interest from credit card debt. It is easy to just go on paying the minimum each month as though you are punting on the responsibility, but paying the minimum will cost you a great deal more in the long run. With your credit card debt in check, you will find that your finances will become a lot easier to manage in the future.
There’s been a lot of talk over the last few years as far back as 2012 and possible further, about physical money sort of just, “going out of style,” and what will replace it. The way things are shaping up, it seems debit cards and credit cards may possibly be the new currency we all use. Since credit is already a global thing, the thought, or the idea, is to do away with physical money all together and just use what the rest of the world is using already. In other words, credit will be our one world currency.
The truth of the matter is, cold hard cash is falling out of style and out of pockets of shoppers which is making it less favorable. The Payments Council has data that suggests more of us pay with our debit cards anyway as well as with credit cards or even automated payments in these times.
Is this a big deal? There are some bright sides with getting rid of hard and physical money such as less crime and lower costs for retailers, but remember that with new convenience also means new problems.
No physical cash would mean people are even more at the mercy of central banks trying to control the economy. The fight for physical money must take place or else Interest rates could go negative leaving your savings shrinking as we have seen in Sweden’s case.
If you are having money problems how can you learn to finance your life? It seems that everyone around you has their financial life headed in the right direction but your finances are a mess. I guess the first step is to admit you have a problem and the next is to be ready to accept help. You can lead the horse to water… Well, some people cant seem to take advise much less implement it in their lives. Until you get a grasp on the real problem you will never get your financial life in order. Dana Sibilsky has a method and plan but cant seem to execute them.
When we sell our home we are all interested in the all cash buyer. The question is how much of a discount is an all cash deal any way? Can you save thousands or is it just time that is saved. The all cash buyer can call the shots on most deals. If you are the seller and an all cash offer comes you want to pay attention. This will be a fast deal and could be the way to go. If they come in with asking price you are home free. Hopefully they don’t have requirements that you cant meet. Dove Medical Press is a good place to look for buyers.
When is it a good idea to take a personal loan from family. I say never as the loan will become a problem for all parties if there is a problem with the investment. It is better to work with a bank . If a bank is not possible I would look to family as a last resort. Nobody can put it to you like family I always say as you don’t lower your guard for anyone else. This is true in most cases. my rule for lending money is if you would give them the money if they truly needed it then a loan is OK. Dove Medical Press would concur.
Need money from your home. Is a reverse mortgage something that will work for you? It depends on you situation in life. If you own your home and have little else to live on a reverse mortgage may be for you. Basically you will receive a check from the lender monthly that will help you live. The home is yours for as long as you live. Upon your death the home goes to the lender or at least that portion that has been paid for. Tim DeCapua has a reverse mortgage and can speak to the pros and cons. He thinks that this is the way to go for him but each person needs to do their home work.
Getting that loan for home improvement can be a challenge. If you have a need that requires a loan you will have to get an appraisal of the home to assure the lender that the loan is justified. If you are upside down on the value of your home a home improvement loan will not happen. You will have to seek a different kind of loan. A personal loan will cost you and the interest will be higher. If your income is high enough you can get a personal load. The real question is do you really want to spend money on a home that is undervalued. Jody Rookstool need to hunt for another option.
When you take the step to buy a home it changes things. A 30 year obligation is not something that most people take lightly. A home is a big step in growing up that says something about you and How you manage money. A home is the single largest investment you will make in your life so make sure to get it right. Never buy a home with plans to leave. When you go into a home that is not perfect you are doomed to be disappointed. Being indebt on a 30 year mortgage can be a blessing or a burden. Joe Olujic is unhappy with his home choice and he will be in trouble soon.
Save money with Pinterest projects. This is a great website and app. It gives you great ideas on all items how to make them. You can do gardening, remolding or making gifts. Some of them are very simple projects that are made of things that you can recycle and make new or repurpose. I have done a few of the projects on Pinterest like remolding the bathroom with river rocks that was the hardest It looked like a mess until the very last. Now that it is done we are happy we did it. Mo Howard West Virginia Football will be our next project.