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Category: Budget and Goals

Learn how to prepare a budget and establish objective and effective goals.

  • How to Prepare Your Personal and Financial Life in Times of Coronavirus

    How to Prepare Your Personal and Financial Life in Times of Coronavirus

    Coronavirus or Covid-19 causes a respiratory disease that manifests through symptoms such as cough, sneezing, fever, breathing difficulty and even muscle aches, these symptoms could appear in just 2 days or up to 14 days after exposure. Coughs and sneezes are the two symptoms that generate secretions and that have been spreading the virus worldwide.

    Covid-19 was first detected at the end of 2019 in Wuhan, China, which is the seventh largest city in that country and number 42 in the world, which means that the flow of people entering and leaving this place is extremely high, especially in the market areas, where the virus apparently was generated.

    • Recently, coronavirus cases have increased in different countries, for this reason, federal and state agencies are working to limit the spread of the disease and to develop effective methods against this virus, for the moment there is no vaccine, only the personal responsibility of following the below recommendations to stay healthy:
    • Wash your hands frequently with soap and water for at least 20 seconds, especially after going to the bathroom, before eating, and after touching your nose, coughing, or sneezing.
    • If you cannot get antibacterial gel due to high demand, you can prepare it at home using 91% isopropyl alcohol and aloe vera, mix the two products in a container and let it rest, then it will be ready to use. After that, rub your hands with this mixture for about 40 seconds.
    • Follow a correct diet to strengthen your immune system.
    • Avoid close contact with sick people.
    • Avoid touching your eyes, nose and mouth.
    • Stay home if you are sick.
    • Cover your nose and mouth with a disposable tissue when you cough or sneeze and then throw it away.
    • Clean and disinfect frequently touched objects and surfaces, using a common spray or towel cleaner.
    • Avoid being in places with large crowds.
    • Avoid contact with the other person at the time of greeting.

    What to do if you get Coronavirus?

    The first thing to do if you are diagnosed with the disease is be aware of the importance of isolating yourself to avoid generating infections and following these recommendations:

    • Drink lots of liquids.
    • Rest
    • Take pain medication.
    • Stay home, except for medical care.
    • Wear a mask when you are around other people.
    • Do not share glasses, silverware, towels, bedding, or other items with others in your home.
    • Cough or sneeze into a tissue.
    • Wash your hands often.

    ¿How is the economy affected by the Coronavirus?

    China is recognized for the high impact that generates in the world economy, this is because a large part of its factories export their products and supply the markets of various continents. However, its economy has been affected due to the closure of its factories, quarantines and the preventive measures that have been implemented to prevent the spread of the disease.

    China is not the only country affected by the Coronavirus, the impact on the global economy also affects the economic stability of different markets and investments in other countries, it even affects the financial life of ordinary people.

    Tourism is one of the sectors with the greatest impact, since many of the travelers have decided to cancel their trips to avoid contagion, and the hotel sector has also decreased the number of guests in its facilities.

    Therefore, it is necessary to prevent and protect personal finances against this disease, in addition to be prepared for the measures that the Health System may take, in which case take into account the following recommendations:

    • If you regularly consume a specific medicine, it is important that you have enough medicine at home for several months.
    • Have enough non-perishable food in your home. Thus, you will be prepared for a quarantine.
    • Check with your workplace to see if you can perform your duties from home. There are companies like Citrix with advanced technology to work remotely.
    • Consider life insurance that can give your family peace of mind.
    • Keep your finances organized, generate a budget to manage better your home finances, remember that at in our calculators section you will find guidance on these topics.

    Read also ¿How Much Is Saved In Times of COVID-19?

    The disease seems to be milder in children than in adults or older people, for this reason it is recommended to keep special care in people over 60 years old, since they are more likely to develop symptoms, however, many of the people who have suffered the disease have successfully recovered.

  • How To Pay Off Your Mortgage Faster?

    How To Pay Off Your Mortgage Faster?

    On a $150,000 mortgage at 7%, you will pay $209,262 in interest plus the $150,000 you borrowed over the life of the loan.

    After paying you mortgage company for 10 years you will have made $119,754 in total payments. Of that amount, an astounding 81.4% will have been for the payment of interest. Your repayment of principal will have been only $22,278.

    There are some ways that you can accelerate this:

    The first one is by making payments to the principal every time you can. If your mortgage payment is $800.00 that does not mean you cannot pay more. Every payment you make in addition to the requested minimum will go towards the principal, if you request it when you make it.

    Another way is to make your mortgage payment biweekly. You could do this by yourself, but it might not be easy to keep track of your payments. Here at Premier Consumer Credit, we can refer you to a service provider that can help you set up your mortgage loan on a biweekly program.

    The advantages of a biweekly program on the case we mentioned before are the following:

    The same 7%, 30 year mortgage paid on a biweekly basis results in $156,026 of interest paid over the life of the loan – a savings of $53,236, and your mortgage will be paid off six plus years sooner.

    Any time you make principal payments, or you enroll in a biweekly program you are paying your mortgage loan faster, which build your equity faster, eliminates faster the need to pay mortgage insurance (if you were required to pay for it), and it lowers your effective interest rate.

    Read also Should I Do A 15 Year Or A 30 Year Mortgage?

    Our certified credit counselors can give you specific advice on your situation. Please follow this link to request a free analysis.

  • How to Find a Low Cost Home

    How to Find a Low Cost Home

    Coronavirus has not only affected the health of many individuals in the world, it has also become one of the main causes of economic difficulties that currently occur in American homes, where they seek to minimize monthly expenses to better manage their finances. Therefore, renting a low-cost home may be a good option; here are some tips to make sound decisions if you are moving to a new house and how to find out if you are protected from evictions at this time of crisis.

    If you rent an apartment and currently live there, check to see if your building has a Federal Government-backed mortgage because you won’t be evicted until the end of July 2020 due to a 120 day eviction extension, this applies to people who do not have the possibility to pay the rent, this extension began on March 27th. Likewise, you will not be charged with fines for not having made the payments during the period mentioned above.

    Read also Advantages of Buying vs. Renting

    In the event that the mortgage on the building is not insured by the Federal Government, you can consult with your State about the protection methods that have been defined to avoid evictions at this time of pandemic, you can find information related to this topic in the following links: https://www.usa.gov/states-and-territories and
    https://www.ncsc.org/.

    On the other hand, if you are in search of affordable housing, we will be providing you some tips in this article to do so. Please note that the Department of Housing and Urban Development (HUD) is in charge of providing programs aimed at serving the low-income population, including the elderly and people with disabilities.

    The Government, through public housing agencies, executes programs at the local level in which they use federal funds to support eligible people, this is done by working as a team with the owners of the buildings, with the sole objective of subsidizing people who need it.

    Another option to have access to a low-cost home is to apply at the rental office mentioning that you want to be taken into account due to low income, this is because the Government gives money to some owners so that they can provide apartments for rent at affordable prices, however, you must meet some requirements that will be analyzed at the time of the application.

    You may also apply for a housing voucher, either an election voucher or a public housing voucher. In the case of the election vouchers, you are responsible for finding the place where you will live and the Government will pay the owner monthly, the value corresponding to the voucher that has been granted to you, in this way, you should only pay the difference. If it is public housing, you should do it through the local agency that will analyze your annual income to offer you what fits your budget.

    If you want to access the aforementioned programs, you must meet a series of requirements, among which are:

    • A family, an elderly or disabled person.
    • Be within the income limits of the program.
    • Being a United States citizen or eligible non-citizen.

    There are usually many people applying to these programs, so the waiting time can be long, however, you can start your process by contacting the local public housing agency, completing the form they will give you and providing the additional requested documents.

  • ¿How Much Is Saved In Times of COVID-19?

    ¿How Much Is Saved In Times of COVID-19?

    This pandemic has taken all the people in a surprising way and with practically limited reaction measurements. The impact of this situation has not only affected people’s health, mobility, emotional stability and their usual frequent activities, but has also become an economic challenge. The financial situation both on a personal level and on a business level is still very uncertain, since it is difficult to estimate the social and economic consequences that this situation will leave, everything will depend on the actions that are adopted to restart the economic activities once the pandemic has been controlled. Well, even though a part of the Americans has been followed the safety guidelines, the coronavirus persists in the population with the highest risk and with the lowest purchasing power, being this the main reason why the world economic future continues being uncertain.

    Certainly the emergency at one point forced people to stay home as prevention measurement, therefore, the expenses or need to acquire some products and goods decreased automatically; however, this situation was based on income levels, those with the greatest resources have reduced their expenses by 17%, while households with low income have only managed to reduce their expenses by 4% as of June 10, 2020, and it is striking that unlike other times of economic crisis, this time Americans have reduced their consumption of restaurants, hairdressers, or similar services, while in previous crises they stopped buying expensive products such as houses and cars.

    How has it been possible to save and who has been able to save? The decrease of fuel usage and mechanical expenses of vehicles, or any transportation in general is decisive, not only due to isolation measures, but also due to the people who started working and studying from home.

    Besides that, the leisure activities such as going to clubs, gyms, cinemas, bars and discos have generated significant savings for citizens. As an example, USA Today exposed to the public the case of a citizen of California, who assured that by staying at home during the pandemic, and managing to avoid the expenses of the items previously exposed, she achieved substantial savings in the order of 4000USD, money that could be easily allocated to other types of items and in her particular case it was allocated to upgrade her home.

    However, households with low income are those that haven’t being able to save, since their expenses remained similar to those they had before the pandemic.

    Read also Tips to Prepare Your Finances for a post-Covid life

    What expenses, obligations and / or needs increased or emerged with the pandemic?

    In many homes, the furniture had to be upgraded for the development of work and academic activities; as well as the purchase of laptops and additional technologies or services for the same purpose.

    A first glance, it could inferred a complexity in economic matters, but not in all environments, although jobs were lost, an imminent economic recession was manifested with which some Americans have managed to save more lately than under any other previous circumstance; a higher percentage of the people who were able to save are from high-income households.

    The final destination of savings during the pandemic will obviously be ruled by individual needs; however, they will remain to be allocated to the uncertain future that the situation holds for us.

    In conclusion, a margin of Americans have managed to save money under these circumstances, the personal savings rate increased from 8% to 20% regardless the initial outlook of the United States economy, which contracted at a rate of 33% in the second quarter of the year and about 14.7% of the population remained unemployed.
  • How And When To Apply For Bankruptcy

    How And When To Apply For Bankruptcy

    There are times where you might feel like all your money disappears thanks to the debts that are accumulated day by day. Utility bills, taxes, loans, mortgages, and list goes on and on. With empty pockets and a lot of stress start considering bankruptcy as an option for your financial life. Bankruptcy laws are meant to offer relief and a “fresh start” to those who have too many debts due. Of course, there are other alternatives to consider before taking such important decision since this one has many consequences; probably the most important one is that it will appear in your credit report for a period of more or less 10 years. In fact, some debts like student loans and taxes cannot be solved through bankruptcy; however, most of the people that choose to apply for it solve other types of debts.

    Although bankruptcy is a great choice for some people, is not something to take lightly, applying for bankruptcy means you got to the point of no return where your finances and expenses were not assumable anymore. Applying for bankruptcy should never be seen as something you “can do” to get out of trouble, and most people don’t really get this and after they filed once they tend to do it again, which basically shows that you didn’t learn your lesson the first time.

    “Bankruptcy laws are meant to offer relief and a ‘fresh start’ to those who have too many debts due”

    This application for bankruptcy is also an expensive process, it is a legal process that needs to be consulted with a lawyer who knows how to handle the subject and he of course needs to be paid for his services. The better your lawyer is the better you’ll do on your trial and the clearer your accounts will be for you to manage afterwards.

    For individuals and companies there are different types of bankruptcies called “Chapters”. The 2 most common are Chapter 7 and Chapter 13.Although the process to apply for bankruptcy is governed by the United States Courts, each state has certain particularities regarding the process and its outcomes. Later we will give some detailed information regarding the process to apply for a bankruptcy case.

    Let’s start with when is it that you should apply.

    The “when” varies from person to person since everyone’s situation is different. The idea is that a person who wants to file a bankruptcy case has already tried other less extremist options such as: financial coaching, credit counseling, negotiating with creditors, credit card consolidation, loan modification, or loan refinancing. If those alternatives did not work and your situation is still the same –or worse-, then you can think of Bankruptcy as an option.

    Other signs that show your financial decline are: using your credit cards way too much, taking money out of your retirement accounts, when your monthly income is not enough, or if your total amount of debts just keeps rising.

    Read also: Understanding Bankruptcy

    Now that you know when,you need to know how to apply.

    Depending on whether you are filing for a Chapter 7 or Chapter 13 Bankruptcy case, the list of requirement may vary, but at first, they are the same. Notice that the very first thing you have to do is hire an attorney that can offer help and assist you throughout your case; you could do it be yourself, BUT it is not recommended because it is a complex, time-consuming process that is better off in the hands of someone with the competences to do so.

    According to the U.S. Courts, to begin, a debtor must fill out a petition with the bankruptcy court servicing in his or her area. The Forms may be purchased atlegal stationery stores or downloadedon line.

    Additionally to the petition, the debtor must also file:

    • Schedules of assets and liabilities
    • A statement of financial affairs
    • A schedule of current income and expenditures
    • Evidence of payment from employers, if any, received 60 days before filing.
    • A statement of monthly net income and any anticipated increase in income or expenses after filing
    • A list of all of the debtor’s property
    • The source, amount, and frequency of the debtor’s income
    • Others

    Specifically for debtors applying for a Chapter 7 case, he or she must file also:

    • A schedule of “exempt” property.

    During subsequent meetings, the trustee puts the debtor under oath, and both the trustee and creditors may ask questions. The debtor must attend the meeting and answer questions regarding their financial affairs and property.

    Specifically for debtors applying for a Chapter 13 case, he or she must organize with the trustee a repayment plan, which will be taken to court for a hearing after a meeting with the creditors. Here, accuracy and completeness are the keys to a successful process.

    Institutions who offer credit counseling like we do at Premier Consumer can’t really take care of your process or give you legal advice about it, but we can help you get out of debt and consolidate the payments of your multiple debts into a single monthly payment to make your life and finances easier to handle. Our Debt Management Program can help you manage your debt so you don’t have to apply for bankruptcy, consult these options before filing for being bankrupt.

    Additionally to those requirements, the debtors must pay a $245 case filing fee, a $75 miscellaneous administrative fee, and a $15 trustee surcharge when it is a Chapter 7 case; for Chapter 13 cases the debtors must pay a $235 case filing fee and a $75 miscellaneous administrative fee.With the court’s permission, individual debtors may pay in4 installments. The time given by the court to pay the installments is between 120 to 180 days.

    Debtors should be aware that failure to pay these fees, lack of cooperation with the trustee and hide of financial records or legal documentsmay result in dismissal of the case.

    Read also: 10 Symptoms That You Are Over Your Head In Debt.

    Filing a petition under chapter 7 or chapter 13 provides the debtor an “automaticstay” that stops most collection actions against the debtor or his / her propertysuch as: impossibility to initiate or continue lawsuits, wage garnishments, or telephone calls from collectors. However, any debtor in a Chapter 13 case may still lose the home if he or she fails to make the regular payments settled after the chapter 13 filing and payment agreement.

    Having said that, filing for bankruptcy is a complex process that should not be underestimated, and it is mostly recommended when no other solution is possible or available.

    If you find yourself in this situation, we suggest you to find financial assistance so you can solve your debts and avoid future problems.

  • Freelancing: How It Works And Why You Should Do It.

    Freelancing: How It Works And Why You Should Do It.

    There are hundreds of thousands of opportunities in the world. It is up to you if you want to take them or not. In a world where technology is constantly evolving, the Internet is another place where we can see this phenomenon.

    At Premier Consumer, we want to help you improve your life and financial status, for that we think this article is going to be a great read, read closely as this can open the doors for a new way of living and a new source of income for your future financial independence.

    Let’s start with the internet. That wonderful place where you can find everything you need. That infinite place filled with information just a click away. Still, most people do not take the best out of it. Such a powerful tool is being misused. So, are you one of those people? Probably, that is the reason you are reading this article. Keep Reading, we can show you how it works so you can be a part of it.

    We all know the internet, how it works and why do we use it, although everyone uses it for different things. To communicate with people, to look for information, entertainment, books, magazines, movies, social media, etc. But what about working? Is there a way to work on the internet and make some money? There is! It is called freelancing.

    “Is there a way to work on the internet and make some money? There is! It is called freelancing”.

    What is Freelancing?

    Freelancing is a term that means acting independently without the help of others. When applied successfully, it’s a wonderful way to work. No bosses, just you and what you decide to do with your time and talent, and your clients of course.

    Where can I Freelance?

    There are many jobs in freelancing: writing, managing social media, accounting, translations, programming, graphic design, services support, language lessons over Skype, kids that need help with their homework and go to certain sites to hire some help, etc. For this reason, hundreds of pages opened business, to help you contact people that need work done in the areas of your expertise.

    This is serious. It is true that you can make money on the internet without even having to get up from your bed. We picked the best pages and most popular ones for you and here they are: Upwork.com, Elance.com, Freelancer.com, Toptal.com, Craigslist.com, 99designs.com, Guru.com, Peopleperhour.com, iFreelance.com, and SimplyHired.com.

    With these pages you can find specific jobs in whatever that you are good at. And it is also as easy as setting up an account like you would do on Facebook or Twitter and get started. Do the work or project you choose, that could either be on an hourly or fixed price, and get paid; full disclosure.

    Real Also: Is It Time to Re-invent Yourself?

    How Do I get Paid?

    Payments depend on each page’s policies. Most of the times will you get paid on the website and then you choose where to transfer the money. There are many options to choose from; the most used one is Paypal, a free virtual bank on the internet. There are others, of course. But we can recommend Paypal above others because of its excellent customer support and ease of use.

    How can I Start?

    Well, the first step if following your passions, looking to do something you would enjoy. What you enjoy doing above everything else. What is it? Let us imagine is writing. You are a writer that needs some money to pay the bills, right? Well, you go into Upwork.com or any other page you like best, and create an account. Look for the job that you want using keywords that match the job description. In this case it could be: writing, writing gigs, copywriting, book writing, article writing, etc. You find a job that fits you and you apply for it.

    What Should I say in my application?

    That is up to you and your personality, but the most important thing is to be yourself. To show respect, good communication skills and talent as you would do on any other interview for a job. Remember that even when you are working on the internet and you are technically as independent and free as never before, you still need to be professional to achieve great results, and you can never miss a deadline.

    Read Also: Four Ways A Budget Can Help You Manage Your Money Better.

    How much can you make on the internet?

    That is completely up to you as well. There are people that even live on what they make online and can maintain their whole families with that. Other people use it as a second income while still maintaining their day jobs. So yes, it is completely up to you but if I were you, I would use it like those people that live freely and depend only on that internet income. They travel, have time for their families and friends and get to do what they like. You could be one of them too. The more organized you are the easier it will be to accomplish bigger results and expand your workload.

    The Freelance Industry Evolution

    Freelance has been adopted as the way to work for over 53 million people in the United States, which means 34% of the national workforce. Generating an annual revenue of over 900 billion US dollars. Day by day, people are leaving their full-time jobs to dedicate themselves to their own freelance career and their clients.

    As for the amount of work available, surveys reveal that over 40% of the participants have a bigger workload than past years and the 77% thinks that the best freelance days are yet to come.  That’s what we call a growing industry.

    The respect for the industry has also gone bigger and as time goes on its now acceptable to say “I’m a freelancer”, and raise the respect and interest of the person you are talking with, who most likely happens to be interested now in your way of living.

    We hope this helps and that you find you way into the infinite freelance woods, we can promise it will be worth it.

  • Five Tips To Make Purchases Like A Pro.

    Five Tips To Make Purchases Like A Pro.

    You can make purchases like a professional; it’s a matter of organization and following some guidelines. The first thing you must do is to identify your monthly income and responsibilities. This way you will know how much money you will have available to spend in items, trips or in whatever you consider may be an important purchase.

    Below we offer five tips that you can follow to make purchase decisions of products or services:

    1. Ask Questions: You have the option of coming up with a series of questions to make the provider of a product or service. Find out the cost, if there are payment methods, if you can ask for the reimbursement of your money in case of not wanting to keep your purchase, if you have any type of tax or monthly charge, which additional benefits are offered and if they make part of a written document.

    You can also find out what guarantees are available and if they offer you a written version of them. It is possible to get an extended guarantee, remember there are many places that offer this service, but you must analyze if the cost is high and if it is worth it to make a payment of extended guarantee for a product that does not have too much of a damage risk.

    Another question you may have is about insurance, since there are many credit cards that automatically offer to insure the product that you acquired and thus, it is not necessary to take the insurance offered by the store.

    Ask all the questions you consider necessary to solve your doubts and make the best decisions.

    2. Do not let yourself be pressured: When you are going to take a financial decision it is important that let you do not let yourself be pressured. It is possible that if you are going to buy an item, a trip, a property or even a credit card, the salesman pressures you to take an immediate decision. Remember that the sales teams are trained to persuade their clients and achieve that they buy in the same moment that they perceive your interest.

    However, once you have solved all your doubts, take the time to analyze if it’s really convenient to make that decision. Examine the benefits that it will bring to your and if you are in the economic conditions to accept.

    Remember that you have the right to different quotes and to buy. You can study different alternatives, receive assessment from experts in the field and make the decision that fits your life style.

    There is a good advice that we can offer you: If you feel that you need to buy something right away, why no wait a couple of days? That way you find out if it was just an impulse buying or something that you really need.  If you make a purchase online, leave it on the shopping cart and wait until you make a decision.

    We also have a tip for you: If you are at a store and find something you like, look it up online and see if it’s cheaper. Many stores will even honor the cheaper online price, so ask a manager very politely and show them them the offer, and see if they will accept it.

    Remember that you have the right to different quotes and to buy. You can study different alternatives, receive assessment from experts in the field and make the decision that fits your life style.

    3. Analyze your economic capacity: Once your doubts are resolved and you have chosen a provider that you consider to be most convenient, analyze if you are in the economic capacity to get what you want. Avoid being led by impulse and the desire to buy, first be conscientious of how much it will affect you economically in the short and long term.

    Review your home Budget and assure yourself that you have the required resources to assume this new responsibility.

    Read Also: 4 Ways A Budget Can Help You Manage Your Money Better.

    4. Have an extra income of money: If you are aware that this new purchase will significantly affect your financial life prepare yourself and seek a way to have an extra income of money. This can be of great help in case that the decision that you make does not have the results you expect. Find out between your known ones if they have knowledge of making extra money by you can take advantage of your free time and increase your income. This support will allow you to bear moments of crisis if they should present themselves resulting of bad decision making.

    5. Make the Decision: Once you are sure, make the decision, read the contracts or documents where your name is present carefully. Verify that all the answers give to your questions are written, assure yourself that the companies which whom you are doing business with are registered in your country and with the legal documentation that allows them to offer that product or service.

    These five steps will help you make a much more solid decision about the acquisition of products and services that may affect your financial life.

  • Five Tips To Start An Awesome New Year.

    Five Tips To Start An Awesome New Year.

    December is the time of the year where more money is spent. Thousands of people, over the world, buy presents, food and clothes for the holidays, other prefer to travel. Some ask for loans, use their credit cards or spend the only cash they have without taking into account that the following month they will not have enough capital to cover all their home expenses.

    Below we list five tips so that you can get over the crisis of the beginning of the year:

    1. Take advantage of the January Sales: It is common that the stores and supermarkets have big sales in January. You can benefit and buy your needs at this time of the year and that way, you will be able to save a percentage of money and invest it in another need that you may have in your home. Remember that if you are going to buy something it must be a real necessity.
    2. Organize Your Finances: Any time of the year is as good as any other to set up some time to organize your financial life. Why not taking advantage of a new year to write an annual budget or consolidate your debts or establish a savings plans or maybe save 1 thousand dollars ? The sky is the limit !
    3. Avoid visiting restaurants during January: Going to restaurants in January will increase your expenses. Instead, you can get groceries and cook them at home. That way, you will save money and you and your family can eat healthily as well.
    4. Reduce your Entertainment plans: If you usually go to the movies, parks, shows, sports events or any type of entertainment, you can sacrifice yourself in January and avoid doing so, since this type of activities will increase your expenses. Remember that you already spent a lot of money in said activities in December and you need to recover your home´s economy.
    5. Benefit from coupons: If you definitively have the habit of eating out, collect the greatest amount of discount coupons and buy your food only in these places. This will allow you to keep your habit at a lesser cost.
    For the following year, it is important that you establish a budget and establish as well which are the expenses you can have in December, that way you will not have to worry in January for the lack of money.

    You can start the year with a directed part of your savings to cover the expenses that you will have at the end of the year; that way you will have eleven months to save and then only spend in the holidays, what you intended for such objective. You can also buy, in the course of the year, the Christmas gifts, any time you see an offer or when you consider it is a good bargain and have the money. Remember that in December things are more expensive. That way you can buy them and keep them until the end of the year. You can start a worry-.free year depending on your financial organization.

  • Five Steps To Writing An Annual Budget.

    Five Steps To Writing An Annual Budget.

    By writing a budget, you will be able to plan for your present and future needs. Once you adhere to a budget, you can save money for life’s essentials, pleasures, and emergencies. To write a budget that suits your needs, follow these five steps.

    1. Keep a Record of your Expenses

    Look at your bank statements for the last year. Write down the amount of money that you spent on essentials. This list should include rent or mortgage payments, utility bills, insurance, transport costs, telephone and internet fees, and education fees. Record, as accurately as possible, the amount of money you spent at the supermarket, on clothing, and on any major items you purchased, such as a new refrigerator.

    Add up all of your last year’s expenses. Look at your last year’s income. Last year, how much money did you fritter away on non-essential items? How much money did you save? Are you happy with the amount of money you saved? If you want o save more money this year, you will need to set yourself a budget.

    2. Make a List of the Items You Wish to Purchase in the Next Twelve Months

    Make a new record of expenses for the next twelve months. If any of your essential items have increased in cost from last year, add the new cost to your list. List the amount of money you would like to spend on birthday gifts, wedding and anniversary gifts, and Christmas presents for friends and family. Your list should include entertainment costs, family holidays, and the cost of any sporting activities that you do.

    3. Make a List of Items You Wish to Purchase within the Next Five Years

    This is your wish list. Maybe you would like to travel overseas within the next couple of years. Maybe you would like to purchase a newer model car or a second family car. Do not add dreams to this list. Only add items that you feel you will be able to afford. Decide on the amount of money you would need to save each week in order to achieve your goal. Start a new savings account with your bank to enable you to save for the item or items on your wish list.

    4. Allow Yourself Spending Money

    Allow yourself money to spend on non-essentials. You need to be able to spend a little money every week on the things that brighten your day. You might like to buy a fashion magazine, a latte at the local café, or see a film at the cinema. It is important to allow yourself the occasional treat, so you do not become discouraged with budgeting.

    5. Write your Budget and Refer to it regularly

    Once you have written down all of your expenses, it is time to add up your lists and complete your annual budget. Now is the time to make any alterations to finalize your budget. If your expenses are higher than your income, it will be necessary to adjust your expenditure. You may prefer to remove items from your wish list, or you may prefer to cut down on your everyday spending. For example, you could cook more meals at home instead of buying take-away food or eating out.

    Read also ¿How Much Is Saved In Times of COVID-19?

    Writing an annual budget is the first step towards financial independence. You can make informed choices as to how you wish to spend your money if you have a written budget you can refer to regularly. It can be fun to look at your wish list and watch your savings increase.

    With careful management, your budget will enable you to achieve all of your needs and goals.

  • Five Simple Ways To Save $1,000 This Year.

    Five Simple Ways To Save $1,000 This Year.

    In these tough economic times, everyone is looking to save money. A few dollars here and there will really add up at the end of the year.

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    Here are five simple ways you can cut costs and save up to $1,000 in twelve months!

    1. Stop using other ATMs. When you withdraw cash from ATM that is not affiliated with your bank, you could be charged anywhere from $2.00-5.00 per transaction – just for taking out YOUR money! Over time, this adds up to a lot of money wasted. So when you’re in need of cash, only use ATMs run by your bank – period. Yearly savings: $104.
    2. Become a coupon clipper. Maybe you used to roll your eyes when the little old lady in front of you at the grocery store would pull out a stack of coupons. But now you realize she was actually onto something. Retail and grocery stores often advertise coupons in weekly flyers or on their websites. Manufacturers of your favorite products offer coupons online, too. These companies are just giving money away, so start taking your share! Want to double your savings? Hold on to coupons and wait until items go on sale. When you use a $1.00 off coupon on an item already marked down $1.00, you’ve effectively saved $2.00. Even if you cut just $5.00 a week on your grocery bill, the savings add up fast! Yearly savings: $260.
    3. Rediscover the library. Remember those days when you were a kid and you’d stop at the library to borrow a book or two for free? The practice hasn’t changed! So stop going to expensive retail stores to buy books that you’ll only read once. Visit your local library and read for free! As an added bonus, most modern libraries also carry movies, workout videos, and even CDs. Yearly savings: $180.
    4. Switch to generics. Will your kids really notice if you switch from Coke to “Kola”? Do you really need to buy snack sized bags of Goldfish, or can you buy a giant bag of “Fishy Crackers” and divide them into snack bags yourself? Often there’s absolutely no difference between the products behind the labels. The only one who will notice the difference is your wallet! Yearly savings: $270.
    5. Online Bill payment Services: Many banks and financial institutions offer bill payment services, which let you make a payment to hundreds of companies electronically or by paper check, at a reduced or even no cost to you. Have you done the numbers to calculate how much you are paying on postage every week? Using online bill payment services may also also help stay on top of your bills and ensure that your payments post on a timely manner to avoid late fees. Yearly Savings: $186.00.