Thoughts On Finance

One of the biggest keys to successful financial structure is to put in place a budget and stick to it.  A budget is the best way to get a grip on your spending and making sure that your money is being used in the way that you want it to be.  Life on a budget is a necessity and so if you haven’t been living on a budget, there is no time like the present to get started and the following information may be helpful in getting started.

Creating a budget generally requires taking the following three steps.

1.  You must track your spending to figure out your current spending patterns.  You can’t change what you don’t know about.

2.  You must evaluate your current spending and set goals to take into account not only your day to day living expenses, but also your long term financial goals.

3.  Continue to track your spending to make sure that it is within the guidelines that you have laid out for yourself.

PITFALLS TO WATCH OUT FOR

Cash leaks.  If you are spending money and you don’t know how much or where it went, then you have a leak.  In general, if you are well budgeted, then you should be able to predict how much cash you need to take for the week, and that should be it.  There should not be constant runs made to the ATM machine or bank, this shows that you are not budgeting effectively.

Spending More Than You Have.  This is a common problem in most households, but you really need to come up with a reasonable budget and then stick to it.  Overspending causes debt, and once debt takes over, it can be difficult if not impossible to overcome, so don’t fall into the trap of spending more than you make.

Don’t Confuse Luxuries With Necessities.  Understanding the difference can be the key to making a realistic budget.  Cable TV, cell phones, internet service and fast food, are not necessity items, even though many people try putting them in that category.  It is important to not try and fool yourself into thinking that you can’t live without these items.

Don’t Count On Windfalls.  When you are figuring out how much money you can live on, don’t include in your budget things like bonuses, tax refunds, or investment gains.  The extra money from such items may be nice, but shouldn’t be figured into your income.

Watch Out For Spending Creep.  This is what happens as you begin to make more money, you begin to spend more money.  You are much better off sticking to the same monthly budget and putting the extra income into your savings.

The expression is opposites attract, and this is very much the case when it comes to spending plans in a marriage.  If you are a careful spender than being married to someone who is a spender can be trying and challenging especially in difficult economic times.  Whether your spouse is a person who spends to get a good feeling from it, or they overspend due to carelessness, the results are still the same, leaving you with too much debt and little savings to pay it down with.

If you attempt to solve this problem using the lecture method, then you may just drive your spouse to spend more, thus resulting in more problems.

A more effective strategy to combat this problem is to keep track of household expenses.  Accountability for household expenses may be just enough to show your spouse the areas that need work, without really saying anything.

If this doesn’t work? Then the time has come to get separate bank accounts.  And if your spouse’s spending is causing extreme stress on your household finances, then you may have to consider stronger measures.

Finally, you might consider lightening up a little. Marriage is one of life’s great blessings. If you think the occasional iToy is expensive, wait until you see how much a divorce costs.

In a struggling economy, more and more people are looking for ways to save money.  Many stores, however, are taking advantage of this market and are trying to convince you that they are running sales and specials, that are really no bargain at all.  The only way to really spot this out is to know your prices.  If a price is genuinely lower and bumped up for the sole purpose of discounting it and still making close to the same profit, then really it is just a scam to get you to spend your money.  That is why it is very important to be a wise shopper.

TIPS TO SHOPPING WISELY:

• Shop with a list.  This will keep you from being drawn to items that you don’t need just because they are “on sale”.
• Be sure to use flyers from stores as well as the internet to shop around.  Many times when a certain store in your area has a product on sale, you will find that other stores in your area will reduce the price on that item even more.
• Know the prices of the items that you regularly buy.  This can help you spot what is truly a good deal.
• Consider buying items that you use a lot in bulk.  Some of these items can actually be purchased online and shipped to you for less.
• Don’t impulse shop.  If you have a specific need, then look around before making a purchase, don’t fall into the trap of I need it right now.  This can allow you to fall victim to price gouging.
• Don’t be afraid to wait.  Many times we just buy what we need because it is there, but it is truly best to buy everything when it is at its lowest possible price.
• Ask around.  Many times when you are looking for a good deal on something, the people you know can be your biggest helpers.  So don’t be afraid to ask, they may just know a friend of a friend or a bargain basement store where you can get a better deal.

It is important to use all the resources available to get the best prices these days.  So don’t just buy the ads that the stores are running.  Do the comparison yourself and you will find this method can help you really save big.

Many people are looking into buying foreclosures, and the truth is this is probably a good investment if you can afford to do so. It is an excellent time to buy into the housing market and consider owning real estate for the purpose of turning a profit, but you must be able to truly afford this type of investment. There are some real hard facts that you must consider.

1. When buying a foreclosed property, you don’t get a lot of the information about the information about the property that you might receive during a traditional home purchase, and this can put you at a disadvantage, if you only have enough capital to take over the home, but don’t have enough capital to invest in repairing the property. Many foreclosed properties require major work and although you may be one of the lucky ones who gets a property that is in excellent condition this should not be counted on.

2.  If you are considering buying a foreclosed home, make sure that you can afford to pay the taxes on the property.  Just because you get a good deal on the property itself, does not mean that you can afford to hang on to it.

3.  Make sure that you are not spending money that you will need back right away.  It is important to realize that with this uncertain market, that although you can definitely make a profit on a foreclosure it may be a little while before you can turn the best profit.  This is why you need to think of buying a foreclosure as a long term investment, unlike real estate investments of the past, when you could quickly turn over homes for profit.

The important thing to remember is that foreclosures are an excellent opportunity to make a profit, but make sure that you can afford to buy one before you do.

Many people will be hitting hard times, and be left without enough money to pay even their most essential bills.  With this many people, who are without good credit, will be left wondering about their options, one of which may be to take out a payday loan.  Payday loans, as they advertise, are meant for short term financial need, and if you go in to take out a payday loan, they make you sign an agreement to that effect.  Yet, once you get into the payday loan cycle some people have trouble getting back out.  Paying off only the interest each time and hanging onto the loan.  For people who are living paycheck to paycheck, this can be a very difficult debt to repay.  Some succeed, however, even they usually return to re borrow at some point in the future.  So when should you consider taking a payday loan? If you are about to have a check bounce on the bank, then you should.  Although the banking industry will have you believe that they are above charging 300% interest on a loan, they will charge you $35.00 and up for a bounced check of even just a few dollars.  So really how is that any different, especially since, if you have ever bounced a check then you would know that once one bounces usually several bounce, and if you have a few checks bounce and your paycheck directly deposited, then that will just eat up your paycheck. Also, taking a payday loan is a better alternative to buying items from a rent to own place.  You can more inexpensively borrow the money from a payday loan and then buy the item out right.  So this is a time to consider a payday loan.

If you can avoid taking a payday loan, then by all means do it, because it is very easy to get caught up in the cycle, but if you have to do it, then don’t feel badly about it, just do it.  It may actually save you some money in the long run.

One thing that can always be counted on is the American spirit, which overrides everything else.  In the times of the Great Depression, those who were down on their luck, would look to those that were better off for help.  In these uncertain times, it is important to remember those who are less fortunate than us.  It is important to realize that even if you are needing to cut back, there are those who are hungry and who are unable to feed their families now.  It used to be that we would send off our aid around the globe to help others in need, but now more than ever there are people right here who are in need of our help and support.

The thing about the needy is that they are not all wearing signs or standing on the street corners.  As a matter of fact, many of those who are truly in need, would never dream of degrading themselves and their families like that.  A recent survey showed that at least 1 in 8 American’s does not have enough to eat. The statistics for those without health insurance is even more bleak. Whether they be a neighbor, clerk at the local store, or a nearby friend, your help is needed.  Often, when times get tough, people begin to hoard, worried about the future.  It is important that in these difficult financial times, that we reach out to one another, trying desperately to see the need in someone elses eyes.  It is extremely important that we not turn our thought away from those less fortunate than ourselves.  This is the time for us to show the loving spirit that connects us all, so take some time and donate today.  Whether it is food, clothing or money, dig deep to help someone who is truly in need.  We can make a difference together.

Here we are, with a “new” stimulus package.  I am afraid that pumping non-existant money into an already failing system is just wrong.  We are all just so hung up on our stuff, that the thought of giving it up scares us silly.  The truth is when the fountain was overflowing, we all drank, and now that there is a crunch we ALL need to cut back to the bare essentials.  I find it amuzing, not really, that our government is cutting back funding for education while our local power company just paid $250,000 in a small town to put a new shelter in a local park.  Do they not get it? No, truly none of us gets it, because if we did we would just ride this economic crisis out allowing those who are living above their means to have to cut back.  Instead, what is happening is the big “power” company’s in this country are saying, not us, we shouldn’t have to cut back, however, all that they are really doing is putting the burden on us to carry them, and that just isn’t right.

It is a time for consequences and for those who have been living within their means, it should be okay.  Sure, I think that the government should help out those working folks who are facing unemployment because of this madness, however, everyone else and their bonuses and oversized homes, need to just take a good hard look at themselves and how they are living above their means, and they need to change.  As long as we continue to provide them with the money that they don’t have to feel the pinch, then we are just feeding their dilusions and that is what got us here in the first place.

It is time to start thinking outside the box when it comes to making money.  Conventional jobs are becoming more and more scarce, and yet people are still in need of money to survive.  What can you do if this is you? You have cut back everyway you can think of, and yet you are still struggling just to pay the bills and eat.  Maybe, you have even suffered a layoff, or a cut back in your hours, making things tighter than they have ever been before.

Everywhere you look people are saying SAVE, but you are thinking I can’t afford to save, I can’t even afford to survive.  Okay, then this is the blog for you.  It is time to begin thinking about skills and abilities that you possess that you can use to generate more money.

Here are some really simple ideas that could generate you some dollars for you with very little or no overhead at all:

1.  Start A Cleaning Business.  Office cleaning, house cleaning, many people use a cleaning service, and with only a few supplies you can start up a business that you can work on your own schedule.

2.  Tutoring.  If you are good at a certain subject, take on tutoring.  You can even hang up signs or put ads in the newsletter at your local schools.

3.  Find Treasures.  Some people are good at thrift store shopping and can find things that are worth a lot for a little, then they resell them online and make good money doing this.  It takes a good eye for this one.

4.  Babysit.  Another way to pick up some extra money.  If you don’t like kids then this is not for you.

5.  Lawn Service.  Believe it or not, this is one of the most lucrative home businesses and affords you to make some really nice money with just the few lawn tools that you already have.

6.  Handyman, maintanence.  If you are handy, then advertise your services.  With more and more women living on their own, this is a business that is always in demand.  Even the women who can handle some of the jobs around the house, usually can’t keep up with all of it.  This type of business could also be a renovation business if you are that handy.

7.  Buy and Sell.  Many people are buying things wholesale and marking them up like the retailers do.  With the help of the internet you can do this too.  Start by looking up wholesale companies and see if you think that you found something that would be worthwhile to sell.  Stay away from knick nacks, with the failing economy these will be the last items that people will be buying.

There are lots of great ideas out there, so think outside the box and get on your way to finding some money out there that you didn’t even know existed.  There is always need, you just have to find it.

With financial times being hard and more and more people becoming unemployed , things are looking a little grim.  For some they are really struggling, however there are some people out there who are just cutting back and keeping their fingers crossed.  In any case, no matter who you are or what type of life you are living, there obviously have to be some changes with prices rising and less and less companies and people being able to keep their heads above water.  Well, I have just come across some very good ideas for getting things and and giving them away for nothing.  I have found a web site called freecycle.org, and this site does listings for people just giving things away.  The things that people are getting rid of vary from home furnishings to bags of old newspapers, and the most amazing thing is that pretty much everything goes.  There is also a way to put on what you are looking for, however you are only encouraged to put a wanted ad up about once a week.  This site is really for those looking to unload.  Some things are old, but some are in excellent shape and the best thing they are all absolutely free for the picking up.  The groups on this site are divided up into areas and so you choose an area close to where you live, so that you can easily exchange with others in your area.  It is incredible.  I have only been a member for a few days, and there are lots of good things that have been listed just in that short a period.

This site is not meant to barter or trade, it is solely for those looking to give away stuff, or get stuff for free.  Some of the best items I have i got for free and that was even before joining this site.  For instance a friend of mine was getting rid of the stuff in her father’s house for him, and I got a chest freezer for free and had it delivered and put in place for nothing also.  I also got a couch for nothing, a dining room set for free, and got a foosball table in exchange for some massage chairs one time.  There are lots of opportunities available, and this site helps put them all together.  So be sure to tell your family and friends to get online and check it out.

Six Sigma programs become popular in poor economy because it can help companies and government cut out waste and reduce costs while making the entire operation more efficient. In the long run, it can work so well that the business may even be able to expand and hire more workers. It can mean the difference in bad economic times of a business remaining in business until the upturn occurs. For government, cutting waste is essential to making the best use of the taxpayers money.

The essence of Six Sigma is to reduce variations in production so low that the business can approach zero defects, thus raising product quality to optimum levels. At the same time, waste and costs are reduced to minimums. Waste can be in materials, or in time, or where there are unnecessary employees working on a job. By cutting costs, the company improves productivity and saves the customer and itself money.

People who are trained and certified in Six Sigma are in demand, and with this notation on your resume, you enhance your opportunity to stand out from hundreds of applicants, to get a chance at an in person interview. Even if you are currently unemployed, you should consider enrolling in a Six Sigma program to help boost your employability. Not only will it help you find work in bad times, it will remain helpful to you throughout your career and make you more valuable to an employer.

Six Sigma is loosely patterned on a Karate theme, offering Yellow Belt, Green Belt, Black Belt, and Master level programs. Each is designed to address a different aspect of production process, and the effectiveness of employees and managers. A goal of Six Sigma followers is to fine tune production or services to a level where the process is streamlined to the maximum. By doing this, the entire company functions as one, constantly on the lookout for ways to reduce waste, in materials, time, or personnel, and cut costs. At the same time, quality control rises towards a zero defect level.

Having a top quality product, with few or no defects is best for the producer and for their clients and customers. Quality will always attract business, and as the reputation for top quality spreads, the business will grow, which is another reason Six Sigma programs become popular in poor economy. Six Sigma will benefit you in good times and in poor economy.