Budgeting for Dummies: a Beginner’s Guide

Balancing The Account (Photo credit: kenteegardin)

If you’ve never had to worry about your own finances before - maybe you’re a student or someone who has lived rent-free with their parents and you’re moving out on your own for the first time - then it can be a daunting prospect and a very grown-up feeling. When once all you had to worry about was the price of a pint, now you’re having to think about whether you can afford to put fuel in the car, do the weekly food shop or go to the cinema.

Budgeting for the month ahead can be a really effective way of getting your personal finances in order, and it really can be quite simple if you allow it to be so - you don’t have to be Carol Vorderman! All you really need is a sheet of paper, a pen and a calculator and you could find that you’re not only making savings, but improving your bank balance as well.

Here are my three top tips for budgeting:

Balance - Outgoings = Available funds. It really is that easy an equation. Take note of your current bank balance at the start of the month. Then, write down all of your outgoings, such as rent, an estimate of how much you’ll spend on fuel and the food shopping, and any other expenses such as credit cards and add them all together. This gives you a total of how much you’ll definitely be spending, leaving you with an amount of money to last you for the week or month ahead depending on how you choose to do it. Then, if you want to, you can divide that figure by days or weeks and that is how much you have free to spend. It really can be that simple.

Online discounts. Shopping on the Internet is becoming increasingly popular with people taking advantage of 24-hour opening, an abundance of stock and online-only discounts which can provide some substantial savings. These can include 20% off at the checkout or even buy-one-get-one-free offers, giving you a lot of money off a product that you would’ve paid full price for on the high street. The money saved can then be saved or used to pay off other bills - a real win-win situation.

Make payments on time. If you've got a bank loan, credit card or payday loan (visit www.paydayloan.co.uk to find out more), then make sure that you make the necessary repayments by the deadlines stated in your agreements or statements to avoid any extra charges being incurred that you haven’t budgeted for. If you make the minimum payments - or pay more if you have the spare cash - on time, then you’ll soon find the amount you owe decreasing, freeing up more cash to really improve the bank balance, allowing you to go out next Friday night for your mate’s birthday.

Related articles

• How to Balance Between Your Income and Expenditures? (50plusfinance.com)

The Story of Greek Sovereign Debt Restructuring

Graphic "When Greece falls" presented by Dutch government on 21 June 2011, speaking of European sovereign debt crisis (Photo credit: Wikipedia)

Greece, one of the ancient-most civilizations, the land of Plato and Aristotle, had gone through one of the most troublesome financial situations, recorded in world history. After the democracy of the country was reestablished in the year 1974, the social model has seen huge sums of public deficits. With the beginning of the year 2007, a devastating financial crisis struck the Grecian order. By 2008, the Greek economy had been damaged with fatal results, and the country was left with no means to service the bond indebtedness. Before the bond exchange offer was perceived, the total amount of Greek debt had reached an estimated sum of 350 billion Euros i.e. approximately equivalent to 456 US dollars. 

The International Monetary Fund or IMF and the countries belonging to the Eurozone, as it is popularly known, had organized a bailout amount of 130 billion Euros or 172 billion US dollars, and hence Greece was needed to refinance and reduce its outstanding bond indebtedness with the help of an exchange offer, to the best possible extent.

 

Required to Pay Back Debts before paying Employees 

It was decided that Greece would have to pass a law as soon as possible, in which it would be stated that the country would give prior importance to repay its debtors, and clear these debts, before the government services are paid for. On the other hand, its bailout amounts would be temporarily deposited to an escrow account independent of the chief budget. This particular account should never run out of money, since it is meant to repay the debts that are in line to come up in the coming three months. 

However, the implementation of this law would have implied that Greece would have to stop paying its doctors, teachers and similar employees of the state, and be forced to pay the interest amount on the debts it has taken. The Tragedy is most of these employees are as it is not being paid the wage amounts they are entitled to receive. 

Greece Emerging Victorious 

However, in spite of facing search adversities and going through such turmoil, Greece has actually emerged victorious. The Hellenic nation has been able to undertake the most happening sovereign debt restructuring that has ever taken place in history. As many as 85.8% private Greek debt holders have decided to come into an agreement to sign a debt write-off deal. This news has been reported by the Ministry of Finance, Athens. 
This particular deal has worked miracles by cutting down the total Greek debts by about 105 billion Euros, equivalent to 138.8 billion US dollars. The reduced amount stands for about half of the private debt, Greece had in its name. As a result the path for the country’s second international bailout package had been carved out, and this package is going to worth an amount of 130billion Euros, i.e. 173 billion US dollars. The European finance ministers was reported declaring that they have no issue in releasing the first portion of the fund, an amount of 35 billion Euros or 46.2 billion US dollars, immediately. 

Author’s Bio: Dan Young is a freelance writer, professional blogger, and social media enthusiast. His blog Ukash Kart focuses on Finance bloggers. You can follow him on Google+

Related articles

• Should You Use Retirement to Pay Off Debts? (50plusfinance.com)
• Get Help to Get out of Debt (50plusfinance.com)
• How an IVA Can Help With Debt Problems (50plusfinance.com)
• 5 Healthy Financial Habits To Build Wealth (50plusfinance.com)

Car Title Loans Sometimes the Only Solution

Car Title Loan Reflection (Photo credit: Jeremy Brooks)

A title loan is a way to borrow money against your motor vehicle. Based on your vehicle's value, a lender determines how much money you can borrow. On average, title loans are $250 to $1,500, but they can be as much as $5,000 or $10,000. The duration of these loans is often short-term, such as 30 days. In a title loan transaction, you keep your motor vehicle and drive it, while the lender keeps the title to your motor vehicle as security for repayment of the loan. If you cannot repay your loan, the lender will repossess your motor vehicle, sell it and pocket whatever you owe. Because of the risk of losing your vehicle if you miss a single payment, you should take the transaction seriously before taking out a title loan.

The biggest benefit to getting a car title loan is that it enables the borrower to get the money they need extremely quickly. Car title loans are usually processed within a day or two. This is because it is a simple process, that really only involves the lender looking at your car to make sure it is worth at least the amount you need to borrow.

Anyone with a car can get a car title loan. This is because there is no credit check or background checks involved. The lender is giving you a secured loan, which means that the loan is based on a piece of collateral that you are putting up. An unsecured loan is when there is nothing involved, but they are giving you money based on the assumption you can pay it back plus interest. There is virtually no risk for the lender, so they have high approval rates with car title loans. Car title loans are perfect if you have bad credit. A bank likely won't give you the ten grand you need for your debt or bills, but if you have a car, the title loan will get you what you need.

Car title loans are a big part of the non-banking community. They are often the only way someone can obtain cash in a hurry for a family emergency. Many people do not have access to lines of credit, credit cards, or personal savings. The greatest asset that most people have is their car. Usually their car is at least worth $1000 or more. Seeking a car AZ Title Loan is their best choice.

Related articles

• Finance for First Time Car Buyers and Students (50plusfinance.com)
• Payday Loans Becoming More Transparent (savealittlemoney.com)
• Unsecured Personal Loans in Times of Need (50plusfinance.com)
• Women Use Payday Loans More Than Men. (savealittlemoney.com)

Baby Boomers Without Kids Face Uncertain Future In Senior Years

Baby Boomers (Photo credit: thinkpanama)

With the rising costs of retiring and the impact of Social Security uncertainty that is on the horizon; many in the baby boomer generation will be relying on adult children to act as caregivers in retirement.But what about the 15 million members of the demographic who do not have children, and for them, the future is less certain.

Almost 20 percent of baby boomers never had kids. Around 10 percent of women in the previous generation were childless. Many of these older adults have other young people in their lives who could help them, but are concerned that they'll be too much of a burden.

The relatives of baby boomers without children could be asked for some minor care giving but many retirees do not want to be a burden to anyone. Those without children may be able to take care of themselves for the bulk of their retirement but fear someday they will have to decide on moving into an assisted living community later in life.Female boomers may have it worse than their male counterparts, in particular females have a longer life expectancy than males. Unfortunately, it seems that many baby boomers of both genders have not done sufficient planning to prepare for their retirement years.

Baby boomers who are hoping to move to a retirement community when they're older need to save money ahead of time to help supplement their lifestyle. Long-term care insurance can also help single and childless seniors cover the costs of aging in place or in an assisted living facility. Part of the issue is that many baby boomers are busy caring for their own parents, leaving them with little time to start planning for the future.

Some experts on aging speculate that for seniors who are single and childless, informal living situations may become an option. One representative for the AARP refers to this option as a "Golden Girls" scenario.

The community experience of living with friends is part of what draws many older adults to senior living communities. According to the Yale Medical Group, an active social life can lower blood pressure and the risk for mental heath issues, such as depression. It may also help decrease one's risk of developing Alzheimer's disease or cardiovascular problems. It's also been found that those who are busy socially can increase their longevity.

Related articles

• Medical Negligence A Growing Problem For Baby Boomers (50plusfinance.com)
• How Seniors Can Learn to Cope with Debt (50plusfinance.com)
• Guiding your Recently Graduated Kids through Debt Management (50plusfinance.com)
• Have You Considered Retirement Living Communities? (50plusfinance.com)

3 Easy Ways to a Safer Home and Cheaper Home Insurance

Non-rechargeable fire extinguisher. (Photo credit: Wikipedia)

Home insurance is essential. If you care to protect your valuables and high-priced belongings from theft or a weather disaster such as a flood or fire, then adopting home insurance is the smartest thing you can do. All the same, just because its "smart" does not imply it’s necessarily cheap. If your home insurance quote has you feeling depressed because you will now have to cut back your food and shopping budget even more to afford it, there could be some quick ways you can earn some discounts. 

Your Insurance agent will not voluntarily tell you about these discounts, but if you call and specifically ask you'll learn that by putting in certain security devices around the house you'll be able to slash the price up to 20 percent. To learn which devices (aside from a fire alarm) can earn you a discount as well as protect your home. 

Carbon Monoxide Detector/Alarm

Carbon monoxide is the silent killer-gas is colorless, odorless, and tasteless but it's highly toxic to both humans and animals if inhaled in high concentrations. In fact, it can kill you before you even realize you've been poisoned. It occurs whenever there is not enough oxygen to produce carb dioxide which can happen when using your stove. A carbon monoxide detector can alert your family at the slightest hint of the poisonous gas. And since detectors are relatively cheap-some as low as $17- there really shouldn't be an excuse why your home doesn't have one. 

Deadbolt Locks

Installing some deadbolt locks to your front and back doors can help secure the safety of your home and potentially prevent break-ins. What's so great about installing deadbolt locks is that they're a more economical approach if you don't have the funds to spend on a sophisticated security alarm system or security camera. Deadbolt locks can be purchased at your local home improvement store and can be self-installed rather easily. 

Fire Extinguisher

Purchasing a traditional fire extinguisher, which typically retails for about $30 to $50 at your local home improvement store, is also an excellent way for you to save on your home insurance. Plus, it can help your home from catching fire if you extinguish a small kitchen fire in enough time. Store the extinguisher some place safe but also make sure it's accessible. Also teach your entire family how to use it.

Of course these aren't the only devices that can help grant you a discount(s). Call your agent to see what your options are. You may learn that you already have certain features that can give you additional discounts.

Related articles

• How to Reduce Your Home Insurance Costs (50plusfinance.com)
• How to Trim Down Home Insurance Costs (savealittlemoney.com)
• 10 Ways You Can Save Money At Home (savealittlemoney.com)
• How to Balance Between Your Income and Expenditures? (50plusfinance.com)

Credit Card Cash Advances: What do they Really Cost?

Credit Card (Photo credit: 401(K) 2012)

It is the shopping season: stores are trying to entice people in to buy overpriced presents for their children and grandchildren and adverts on TV are waving expensive toys in front of the nation’s kids as a means of putting pressure on the adults that will be fulfilling the role of Santa. Even the most frugal individuals may find it difficult to resist spending large amounts of money during this period, as it is a time when consumerism is at its peak. Unfortunately there is nothing special about the festive season that magically generates cash once a person has ran out, which means that Christmas shoppers can sometimes end up spending beyond their means and taking out credit card cash advances whilst caught up in the holiday excitement. What most people do not realise is that when withdrawing credit, they are being charged stupid amounts for the convenience and costing themselves more money than they should be forking out.

High Interest Rates and Fees

One of the major downsides to credit card cash advances is that interest rates charged on cash withdrawals are usually considerably higher than those charged on regular credit card purchases. In addition to this, these advances often come with upfront fees of between two and four percent of the amount advanced. Over 50s empowerment, protection and security charity AARP likens cash advances to bait placed in a trap. The charity warns that people are particularly vulnerable to taking this bait during the holiday season but urges them to resist the temptation.

No Interest Free Period

Another reason that these advances should be avoided is that the fifty-or-so day interest free period that most providers offer on regular purchases does not usually extend to credit card cash advances. This means that interest will start to accumulate on the balance straightaway when you withdraw money. This is one of the many dangers of credit card cash advances and makes them a costly way to borrow cash both in the short term and in the long term. According to the NBC News network, the majority of Americans are now over seventy five thousand dollars in debt. You can do your bit to alter this statistic by steering clear of borrowing money altogether or, if there is no other option, choosing more sensible alternatives to getting credit card cash advances.

Better Alternatives to Cash Advances

Making use of an overdraft facility is a wiser choice than getting a cash advance, as most charge less on borrowing. If you go for this option then ensure that your overdraft limit is sufficient to meet your withdrawal needs and be sure to contact your bank straight away if you think that you are going to go over your limit. Some credit card providers offer money transfer facilities that allow you to transfer funds from your credit card to your current account without incurring any interest. This is usually done as part of an introductory balance transfer offer. It is another viable choice, as is using a low rate purchase card. The interest charges are usually far less for these cards and they also provide the benefit of an interest-free period in which you can clear the balance. Unsecured loans could also prove to be a better option in the long term if you are constantly in need of extra funds and know that there is a high chance that you will be borrowing cash for an extended period.

Emergency Situations

In the event that you have no choice but to borrow cash using your credit card, try and opt for the card that charges you the lowest level of interest and fees for making cash withdrawals. Most credit card providers will charge you a fee for each cash withdrawal that you make so it is a good idea to withdraw the whole amount of money that you require in one go. This will ensure that you only pay the cash withdrawal fee once. Finally it is important to pay off the outstanding amount as soon as possible in order to avoid wracking up more interest. Putting this off is liable to result in you becoming swamped with debt and being unable to turn the situation back around.

Related articles

• Understand Your Credit Cards Before Seeking Debt Help (savealittlemoney.com)
• How Balance Transfer Credit Cards Can Save You A Small Fortune (savealittlemoney.com)
• Cash Back Credit Cards: Good or Bad Idea? (savealittlemoney.com)