Posted by admin on October 28, 2008 · Leave a Comment
Everyone is thinking and talking about finances lately and the stress of it all is really getting to some people. Maybe you think that it isn’t effecting you, but I would tell you that it is probably effecting you more than you think. Take this scenario:
You hop online to check your bank account, just like you do on a regular basis, but the screen says sorry we are experiencing technical difficulties, and you can’t check to see if your direct deposit is in your account. So you try this over and over again, but still it doesn’t work. Still trying to find out if your deposit has come in, you now try to call the bank’s 1-800 number, and when you call you receive a recording that says “sorry this service is not available at this time”. So you shoot up to the local ATM machine to check your balance, and it is Temporarily Out of Service. Now let me ask you a question, do you think “wow, there computers must be on the fritz” or do you think to yourself “I wonder if my bank went out of business”? Well, I have encountered computer glitches on several occasions, but when this scenario happened to me last week, I started to think that maybe my bank had gone under and my money was gone. Unfortunately, with all the hype and focus on the state of the economy, you can’t help but keep these worries in the back of your mind. Even when you think that they aren’t seeping in, they probably are. One way to keep things in check is to read your news instead of getting it over the airwaves. Although, they can still put a spin on it, it is a little less traumatizing to read it in print then to listen to it. Then if you read something and you are unclear about what was said you can go back and reread it. When you hear it, it is in a fleeting moment and then it is gone, sometimes leaving you unsure as to what you just heard. Also, tone and inflection can play a big role in how you interpret what is being said, and in the paper they are less likely to influence you in this way.
Don’t feel alone, we are all feeling the heat. Try to do things to keep yourself calm and realize that either way we will make it through this difficult time, as have many who have come before us, we will persevere.
Filed under Banking · Tagged with account, ATM, ATM machine, bank, bank account, call the bank, check your balance, direct deposit, finances, money, persevere, state of the economy, stress
Posted by admin on October 21, 2008 · Leave a Comment
FDIC insurance is what our banks supposedly have to cover our money in case the bank that you have your money in goes under. This insurance used to cover up to $100,000 per account and has recently been extended to cover up to $250,000 per account and if your money is in a non-interest bearing account, all the money that you have in an account is supposedly covered according to the new FDIC rules effective until December 2009. Investment and finance expert Suze Orman has been on TV of late for commercials regarding the new FDIC online evaluator, that allows you to check and make sure that your money is insured. My real question to all is, if this system were to crash, would our government really be able to cover all of the money that every single person in the US has in the bank? And the answer in my opinion is NO WAY! Take a moment and think about the movie “It’s a Wonderful Life”. In that movie, when people got wind of the bank’s problems they all ran to the bank to withdraw all their money at once and very quickly they knew they were in trouble. How do you think that our government would handle such a crisis? Do you think that they could just explain to people that their money was invested in their neighbor’s homes and farms? I think not. So is it a good idea to keep all your money in the banking system? I suggest not. I am not saying to withdraw every penny, however, it may be a more advisable to begin to save some cash on hand, just in case. I mean with the stock market so iffy, and the potential that banks and real estate could crash and no credit available, isn’t it possible that you could be left without a dime. I think it is not only possible, but perhaps likely. In any case, it is not meant to scare people, but to take note of where your money is and who has the control over it. It is actually ironic that we are allowing the Federal Government full control over our personal finances, especially since they seem to be such prudent financial wizards, don’t you think?
Filed under Banking · Tagged with account, bank, bank's problems, banks, crisis, dime, FDIC, FDIC Insurance, FDIC online evaluator, Federal Government, finance, finances, financial wizards, Investment, money, money is insured, new FDIC rules, personal finances, real estate, stock market, Suze Orman, withdraw
Posted by admin on October 13, 2008 · Leave a Comment
I have always loved the holidays. Always a fun and exciting time of year filled with hustle and bustle. Some years, though, have been more difficult than others. Many years, we didn’t really have enough money for Christmas gifts, and it put a lot of added stress on us. The years had more and didn’t have to go into hock to make a Merry Christmas were also a lot nicer. I didn’t have to worry about what I would get everyone, I could relax and shop early and get whatever I idea came into my head for that special person. On years when I didn’t have enough money I would stress and by the time Christmas day would roll around, I would be completely broke and miserable knowing that I spent money that I didn’t have to get through it. This year, I think that with the economy where it is, we all need to take a few steps back and really look at how much money we are spending on Christmas. There is nothing fun about buying gifts and then stressing about how to pay for them. I know I wouldn’t want to think that anyone was getting stressed about a present that they bought me and really couldn’t afford, the gifts are not that important but the people are. It is a great time of year to acknowledge people, but you have to make practical choices and shop for the deals. There are a lot of good bargains out there and a lot of really creative ways to give exciting gifts without spending too much money. This year, let’s all be smart and limit our spending of dollars and just spend time with the ones we love instead. It is more important than ever to realize that the material stuff is just stuff. Let’s not buy into the madness that the local businesses perpetuate, let’s take a step back and just enjoy the holidays and not go broke in the process, after all you don’t want to end up in the same financial state as our government do you?
Filed under cutting back, Debt · Tagged with acknowledge people, afford, bargains, broke, bustle, Christmas, Christmas day, couldn't afford, deals, dollars, enjoy the holidays, enough money, exciting gifts, exciting time of year, financial state, gifts, good bargains, government, holidays, hustle, limit our spending, Merry Christmas, money, money for Christmas, present, shop early, shop for the deals, spending on Christmas, spending too much, spent money, stress, stressed
Posted by admin on September 18, 2008 · Leave a Comment
I guess, with all the talk about money and finances in the forefront of everyone’s minds, you would think that more people would be taking action and cutting back and saving money now for the future. This is really not the case because some people really don’t understand shopping wisely and saving money and all that stuff. It seems pretty simple to me, maybe because I learned from my grandparents, who came from the Great Depression times and didn’t have much money even after they started a family. Growing up I would hear my grandmother tell stories about wanting to buy a Christmas present for my aunt when she was a little girl and about how they could only afford a doll, but they couldn’t afford the clothes, so she made an outfit for the doll which was my aunt’s only Christmas gift. I heard stories about adding water to stretch things and making lots of Koolaid to quench the thirst of friends who would come for a visit. My grandparents now have money, but still do not spend. My grandmother still recycles her tin foil and uses it again. She shops a bargain whenever possible and will reuse items past the point of exhaustion. Since they never really had money, when they did get it, they still continue to act as if they don’t. This is how they were raised. Many times when speaking to my grandmother and grandfather about my struggles with raising a family and about having no money, they share stories about wondering how they would pay for heating fuel and about the tough times. I look at them now and hope that my future holds for me money in it, as they are a true testament to the power of pushing forward and going from have nots to haves. A rags to riches story that even now, makes you think about how you are spending your money and what you are spending it on. I am gradually learning how to cultivate my money and keep it going far past where it should. I am cutting coupons and shopping sales, I am going to yard sales, I am cutting back. My kids feel it and are hating it, but I can’t just blow money on their every desire, I keep trying to explain to them the difficult financial times that we are in, but I really don’t think they get it. The time to cut back is now, so start making gifts for Christmas and thinking of ways to reduce costs where ever you can. This is a time of “Economic Slowdown” so be ready because when things start to slow down, they eventually come to a stop.
Filed under cutting back · Tagged with afford, bargain, blow money, coupons, cutting back, economic slowdown, finances, great depression, making gifts for Christmas, money, no money, rags to riches, raising a family, reduce costs, Saving Money, shopping sales, shopping wisely, slow down, spend, spending, tough times, yard sales
Posted by admin on September 16, 2008 · Leave a Comment
Watching the View, I got to hear Whoopi Goldberg’s take on the current financial situation in the US and I found it extremely interesting her perspective on the whole thing. The truth is she was talking about the government bail out of AGI. Her point was, which I thought was a good one, was that the government gave $80 billion to AGI for the bail out because we American’s couldn’t pay what we owed, and now that AGI has that money, isn’t that in essence wiping clear the money that everyone owes AGI? Yet, we are not only responsible for our personal debts to AGI, but in addition to that, our government has in fact created a deficit that in turn we the people of this wonderful country are going to have to pay debt, so in essence we now have to pay this debt twice. It was a really good point and one I thought was worth discussing since actions like this are taken to wipe away the debt for a large corporation or for our Federal Government, however, where is the help for the actual people who are falling deeper and deeper into debt by a government that does nothing but spend, and now even when they are out of money, they are printing more money with no backing to it to bail out large corporations. I saw on a television show recently, a man suspected of terrorism, and when asked what he had against this country, he said “this is not a country, it’s a corporation.” I think perhaps he is right as a country does not just bail out failing companies and spend it’s peoples money on wars for the purpose of financial gain, it sounds more like a corporation to me, but maybe that is just my perspective on it?
Filed under Debt · Tagged with $80 billion to AGI, AGI, bail out large corporations, corporation, deeper into debt, deficit, failing companies, Federal Government, financial gain, financial situation, government bail out, government bail out of AGI, money, money on wars, out of money, pay debt, personal debts, printing more money, spend, the View, Whoopi Goldberg
Posted by admin on August 24, 2008 · Leave a Comment
From the rich to the low income, money and stretching a dollar is on everyone’s minds these days. A recent Dr. Phil show reviewed some of the biggest money mistakes people make, and I found the information very interesting so I am passing it on to you.
1. Living Beyond Your Means – One of the biggest mistakes people make is that they want more than they can actually afford. Spending money on things you can’t afford will most definitely put you into financial crisis. We as American’s must learn to live within our means. We may not want to but if the math says we can’t afford it, then we can’t. There is no magical way to afford things that are beyond the dollars you bring in, so live wise and be frugal. In the long run, being debt free will give you much more than that new TV or car will.
2. No Emergency Back Up Plan – Families must live below there means if they are going to be able to tuck some money away just in case of emergency. In this country, families used to only have one income, and in that case if one party was unable to work, the other party could just get out there in the work force and earn a paycheck to keep the family afloat. Now with most families using all the income potential just to get through the day to day, it is more important than ever to have a savings plan and to keep adding to it each paycheck. Hopefully you won’t ever need it, but it will be nice to know that if you hit a rough patch you have something to fall back on.
3. Fixed Income Is Not The Only Answer – Fixed income is an important regular, steady income and is very helpful to have, however there are other ways to make money, and there is nothing wrong with investigating other options while bringing in the weekly paycheck. There is a whole world of business opportunities available, everything from starting your own home business, to finding a side job that allows you to work from home. Be sure to not limit your options to just the jobs that will bring in a paycheck, sometimes your greatest earning potential may lie in a great idea you have, so don’t just dismiss all else, keep your options open.
4. Cashing Out Your 401K – Sometimes you may not have a choice. Financially, you may absolutely have not other options, however, if at all possible keep that money in there. It is money that you can use for a down payment on a home or for kids college, and in addition to those things, you may also need need it to supplement your Social Security Income when you are old. If at all possible, don’t take the money, and if you need to try and take as little of it as possible. It is not a good idea to steal from your future to pay for today.
5. Believing The Myth Of Fixed Expenses – There are absolutely no fixed expenses. When budgeting and realizing that you can’t meet your monthly expenses with your income, it is time to cut down to the bare minimum. A car payment is not fixed, sell the car, pay off the loan, and buy a cheap car to get you back and forth to work. You can reduce your energy bills by being more conscientious. There are ways to reduce just about every bill that you have, if you just work at it. More peace will come into your life if you are living below your means. Happiness comes directly from the peace in knowing that you don’t owe anyone, anything, so cut back now and reap the rewards, you will probably even live longer being this kind of stress free.
Filed under Debt · Tagged with 401(k), afford, biggest money mistakes, bill, car payment, cheap car, cut down, debt free, down payment on a home, emergency back up plan, financial crisis, fixed expenses, fixed income, frugal, home business, kids college, live within our means, low income, money, money mistakes, one income, pay off, paycheck, rich, savings plan, Social Security Income, starting your own home business, steady income, stress free, stretching a dollar, work from home
Posted by admin on August 15, 2008 · Leave a Comment
When financial worries start to take over, and your income no longer meets your expenses, the first things that wind up sitting unpaid are those credit card bills. Many people mean well and really want to pay their debts, but the money is just running out and their survival unfortunately is relying upon them not paying those bills. Well, most people do eventually begin to catch up, find a new source of income, or a way to cut expenses, but unfortunately by that point it may already be too late. You see damage to your credit score can sneak up on you really quickly, with just a few payments behind, you can quickly send your credit score plummeting and the thing that you have worked so hard to maintain your whole life, goes down the drain and you find yourself back at square one. The best thing that you can do to bring your credit score back up is to keep paying those bills, on time. Paying your bills on time will help you start to bring that credit score back up, but at the same time you need to be finding new ways to cut back and make more money simultaneously. The best way to make sure that you get on track and stay on track is to start paying your bills and keep putting money into savings at the same time. If you are living paycheck to paycheck, then you are in fact setting yourself up for failure. If you don’t have a back up plan then you are just a bump in the road away from the next crisis. There is potential to be injured, use a job, get ill, something that may prevent you from working, and if you are already banking on the paycheck that is coming on Friday, then this is risky business. The suggested savings plan means that you have enough money set aside for your family to live for an entire year, I have heard some people say at least 6 months, but the time to start saving is not when things are better, it is right now. Please don’t wait any longer to start making a good and secure financial future for you and your family. The economy may not be in good shape but that doesn’t mean that you can’t be. Start bringing down your expenses today and you will begin to create not only a savings plan, but a feeling of peace of mind and security that your whole family can enjoy for years to come.
Filed under Debt · Tagged with bills, bringing down your expenses, credit card, credit card bills, credit score, cut back, expenses, financial worries, make more money, money, more money, paying your bills, saving, savings, savings plan, start saving
Posted by admin on August 4, 2008 · Leave a Comment
All the focus in the media and on the street is that we are all going under and it is just a matter of time before we see the next great depression in this country, but is all the negative hype making matters worse? Well, there are many schools of thought on this subject and the consensus is yes, worrying will make your financial situation even worse.
Worrying is creating and wasting energy that could be better used to focus on what you can do to help yourself. Worrying creates depression and a feeling of matters being totally out of your control. This leads to feeling overwhelmed and helpless, and that is a hard place to function from. How can you avoid feeling like this?
Start focusing on the positive. Things that can help reduce your monthly expenses will help you to feel empowered. Take the reigns and get your spending and your finances under control. Don’t think negatively about money, think positively focus on the fact that there is plenty of money in the world and plenty of it for you. Tell yourself that each day you will work to conserve not only money but all of the resources that you have available to you. Always treat your money with respect. Keep it well organized and neat and treat it well. Experts say that treating your money with respect is a good way to obtain wealth. If you think about it there aren’t too many millionaires with crumpled up money stuffed in their pockets or money lying all around their homes, so show money the respect that it deserves.
Following these simple rules can not only help you feel empowered to deal with your personal budget, but can also keep you from getting down in the dumps when the going gets tough. Just a few tips to keep your sanity during this time of growth.
Filed under Saving Money · Tagged with finances under control, financial situation, great depression, millionaires, money, monthly expenses, obtain wealth, personal budget, plenty of money, reduce your monthly expenses, spending, treating your money with respect
Posted by admin on July 23, 2008 · Leave a Comment
If you are like most people you are probably starting to feel like the walls are closing in on you. For so many people, who in the past have been making just enough money to keep their heads above water, the tide has shifted and the heads are not having any room to come up for air. Well, everyone is feeling the pinch, some more than others, but instead of complaining about the issues, make a pact with yourself to take the necessary steps to give yourself some breathing room.
1. Watch your unnecessary spending. So many of us spend without really thinking about it. We are functioning on automatic pilot when we are out there in the world. Sometimes just cutting out that extra cup of coffee and donut on your way to work in the morning can be enough to ease a little bit of the pressure. Did you realize that if you buy one cup of coffee a day for a week that is the same amount of money that it would cost you to buy a coffee maker? Even with the price of coffee these days, you still save an enormous amount just by brewing your own. Not only that but invest in a plastic travel mug and clean it out. You will not only save on $$$ but also be helping out the environment.
2. You can do your own car repairs. Did you know that many of the instructions for performing an oil change or changing out filters can be found right online? You can even find a diagram of your car’s engine, so that you will easily be able to locate filters in the car more easily. This will take a little extra time, but it is a wise investment that will not only save you money, but will also take up some time in which you might otherwise be spending money.
3. Cut out your home phone bill. Did you realize that in addition to just functioning on cell phones, that you can also get cheap home phone service through your high speed internet connection? Not only that but you can reduce your bill from about $70.00 per month to about $20.00. These online phone services don’t charge you for long distance fees, and you can sign up right online and choose your own phone number. It is worth your time to look into this option.
4. If at all possible ride a bike to work or carpool. This will save you on fuel expenses and let you use the fuel you are buying for recreational purposes. Again another money saving tip that will also help the environment while also reducing the wear and tear on your car, which provides truly a double savings.
5. Save as much money as you can and put it aside. Hanging on to your money is definitely the way to go. Now more than ever, saving is important and needs to be looked at. When the economy goes through a rough spot companies will be cutting back, so unless you are in the food or fuel industry, your job could become an extra expenditure that your company doesn’t need. Being prepared by having a little nest egg tucked away just in case is definitely the way to go.
There are many things that we can do to help ourselves feel a little less out of control. We may not be able to control the economy, but we can control how we spend our money. We must use this ability to create a more powerful perspective on the situation.
Filed under Saving Money · Tagged with bike to work, carpool, cheap home phone service, economy, enough money, expenditure, heads above water, money, nest egg, savings, spend, spending, unnecessary spending
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