Category: Budget and Goals

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

  • Five Easy Ways To Save Money On Food Bills

    Five Easy Ways To Save Money On Food Bills

    Everybody loves their food, and even in tough economic times like these, nobody wants to miss out on their favorite dishes. 

    While it can be challenging to save money while still eating food that you love, a few simple ideas can make a real difference to how far you can stretch your budget.  Saving money on food can be achieved through a combination of applying a traditional do it yourself (DIY) attitude to food growing and preparation, while also taking advantage of the new global food marketplace.

    1. Do It Yourself Breakfast.

    Breakfast is the most important meal of the day, and there are many ways to save money at the breakfast table while also coming up with some healthy and tasty treats.

    – Instant oatmeal can be easily made by blending normal budget oats and adding boiling water.

    – Deluxe muesli that sells for high prices in supermarkets can be made easily at home, by buying the individual grain and dried fruit components, toasting some of them, and combining them together yourself.

    – Fruit makes a fantastic breakfast, and if you buy fruit that is local and in season, it can be purchased very cheaply indeed.

    – People enjoy yogurt for breakfast, and it is very easy to make your own and add fruit to taste.  You can make it yourself from scratch or buy a yogurt making kit – either way is much cheaper and healthier than buying pre-packaged yogurt products.

    – Healthy and yummy shakes and smoothies can be made by mixing fruit, ice, and even some of your new freshly made yogurt.

    2. Don’t Forget Your Leftovers.

    Many people throw away their leftovers without a second thought, however, they can often be eaten again the next day.  If you are a little creative, you can even rework your leftovers and make brand new dishes from them.

    – Add another course to make an old dish seem new again.  The leftovers from last night will seem much more interesting with a freshly made soup or a nice chocolate cake to sit them next to.

    – Rework your leftovers by adding rice, bread, or pasta to meals that did not originally contain them.  While this will make your leftovers go much further, it is important to mix the right things together.  Leftover stews work well with bread or rice, leftover vegetables go well with rice or pasta and a new sauce, and leftover meats can be made into a delicious curry or stir fry.

    – Turn your leftovers into sandwiches for the next day.  Before you try it, you will never know just how delicious the dinner from last night can be as a deluxe sandwich.  Meats and vegetables can be combined with a sauce or some cheese to make a fantastic sandwich experience.

    – A chicken once bought can be used at least twice – the meat in a main meal, and the bones as the stock in a soup or curry dish.

    3. Saving While Your Snacking.

    People spend a lot of money on junk snack food, whether for themselves or for their kids.  There are however, many other options available for healthy and delicious snacks that will not break the bank.

    – Crackers and other savoury biscuits can be covered with all sorts of toppings, are generally cheaper than chips, and will satisfy you and your kids much more than a lot of processed snack food.

    – Popcorn is dirt cheap and kids love it.  Popcorn can be seasoned with salt or icing sugar for two very different tasty treats.

    – Prepared vegetables can be dipped in cream cheese, homos, and even peanut butter, and combined with cheese and nuts for a healthy and tasty snack.

    – Fresh fruit cannot be beaten as a snack food, and once again, buying local and in season is the key to keeping the prices down.

    4.  Bulk Cooking Instead of Fast Food.   

    By cooking meals in bulk and freezing them at home, you can eat good quality cheap food even when you are pushed for time in the kitchen.  While fresh food is always the best, bulk cooking is a healthy alternative for those times when you would otherwise end up at the local fast food outlet.

    – Whatever you are cooking, just cook more of it.  By doubling or tripling your dinner output and freezing it for later, you are much less likely to waste money on fast food.

    – Don’t forget to vary your meals.  While bulk cooking is a great way to save money, you will not be very popular with your family if you serve up the same meal a few nights in a row.

    – Bulk food meals can often be combined with fresh bread, a new soup, or a freshly made desert, making them a little different each time and giving them a fresh appeal.

    5. Grow (and Make) Your Own. 

    There is no better way to get cheaper and better quality produce than to grow it yourself.  If you do not have a large yard, or even if you are living in an apartment – there are still ways to become more self sufficient in your kitchen.

    – Grow your own sprouts.  Sprouting is a very healthy and easy activity that anyone can do extremely cheaply on their kitchen windowsill.

    – Pot some herbs.  Growing herbs is another activity you can do which requires hardly any space at all, with many people successfully growing their favourite varieties on their balconies or in their home kitchens.

    – Make your own bread.  Bread makers can be purchased quite cheaply these days, and while they are very easy to use, they are not absolutely necessary.  With a good recipe book and a working oven, anyone is capable of producing delicious bread at a very low cost.

    – Start a garden – now.  With even a tiny amount of outdoor space, you can start a vegetable garden and produce the freshest and most inexpensive produce possible.

    Read also Don’t Waste Food – It Costs Money

    As you can see from these five easy to implement money saving solutions, you can definitely beat the recession when it comes to food.  With a little time and energy, there are a number of things you can do that will make a big difference to your food budget.  Each of these ideas can save you quite a lot of money over time, and using a combination of all five, you can be living cheaper and healthier than you ever have before.

  • Fine Prints Frauds: The Importance Of Terms And Conditions

    Fine Prints Frauds: The Importance Of Terms And Conditions

    How many times have you marked “yes” when they ask if you have read the terms and conditions of any internet service you are buying, without actually doing it? There is no need to lie or feel shame about it, we have all done it sometime or another. But just because everyone else is doing something it does not mean that it is not correct, nor that it is a behavior one must imitate or encourage. Clicking on “I have read and agree to the terms and conditions” without really doing so, is like signing a legal contract without knowing what it says.

    The first thing you should know about terms and conditions is what they really are and the role they play on the websites you visit. The type of website that usually have terms and conditions their users need to agree to, are those that work based on subscriptions and provide some sort of service be it free or by some fee. Since they require that their users subscribe to their services, these sites often need some sort of legal backup in case their product is misused or if any other kind of trouble arises. In that sense, the terms and conditions are nothing more than a legally binding contract that both parties must abide to and respect.

    “Clicking on ‘I have read and agree to the terms and conditions’ without really doing so is like signing a legal contract without knowing what it says”

    If the thought of signing a contract without reading seems like something unthinkable, why should agreeing to the terms and conditions of something like Netflix be any different? You would not buy a house or a vehicle without first reading carefully the sale contract or at least check it out with a lawyer or an expert. But it just so happens that these are material things and for some reason, we do not think of the things we buy on the internet as such. We still feel as if it is all virtual.

    How to Make Effective and Better Decisions.

    We still have not made ourselves with the idea that the things we buy on the internet are real and that the money we use to pay for them is just as real. Think of how the terms and conditions that you are agreeing to benefit the company that you are doing business with. They went through all the trouble of writing them and more than one of them is counting on the fact that you will not read them in order to take advantage of you.

    Terms and conditions are basically a contract

    You are signing a legally binding contract with your eyes closed that obliges you to uphold it and do as it says and more often than not these things will not be beneficial to you.

    Terms and conditions minimize legal disputes

    Being a legally binding contract that you signed without reading it may be too late when you realize that things may not be working as well as you thought it would and now you cannot take legal actions. Written agreements help companies prevent going to court, because in most cases, it is the client who breaches the contract, so it is legally impossible for the later to take the former to court and settle a dispute.

    Terms and conditions can bind you to a service

    In case you do not wish to continue receiving a service, no matter the reason, or if you simply wish to change it, it is possible that the terms and conditions claim that you agreed to those things cannot be changed, or that you must wait a certain amount of time before you can cancel or modify your contract.

    Terms and conditions can be a cage

    Never underestimate the legal team behind big and powerful corporations and companies. These are a group of very capable lawyers whose main objective is caring for the company’s interests and they do so by creating ironclad contracts that are practically bulletproof and free of loopholes.

    Five Tips To Protect your Personal and Financial Information on The Internet.

    You may think that most people are aware of the risks they are putting themselves through, but surprisingly less than 7% of people around the world read the terms and conditions before they agree. According to some sources, six out of every ten people would rather read the instructions manual of a bulldozer before reading the terms and conditions of every online transaction they make.

    Most of the people that admit to not reading the terms and conditions, claim they do not do so because they find it a tedious and boring task and because they are often written in a very specific and technical language that not anyone can understand.

    And out of this group of people that do not read before they sign, there is a significant number that have been somehow been damaged by them. In several cases, they have found themselves bound to a legal contract for a longer period of time than they expected, because they did not read the fine prints. Another considerable group of people has lost money because they could not cancel or modify a hotel or flight booking as they usually have conditions that prevent costumers from changing their reservations.

    At Premier Consumer, we are well aware of the importance of knowing and understanding everything you are agreeing to when you check the “I have read” box, so are best advice is this: Read before you sign! Many contracts can be impartial and only benefit one side over the other, which is the side that usually lands on its feet in case anything happens and more often than not it will be the company rather than the client. These types of clauses will always be there, and in a legal debate, one can never use the lack of knowledge of a condition as reason for non-compliance, as long as it is written.

    Always read the terms of every website you visit, remember that almost every online store have their own version and that they are always different. Look out for things such as cancelation policies, extra fees, special taxes, and fines that may be hidden in the contract.

    Hotels, for example, usually have a cancelation and modification policy on their bookings, these are usually different between each establishment and they can make you lose your money if you do not read them carefully.

    All websites and establishments are bound by law to show and display their terms and conditions agreement so that their clients may read them when they are about to make a transaction or a purchase. It is your responsibility to read them carefully and to be aware of what you are signing so that you may not fall into a legal trap. Read before you sign!

  • Einstein Suggestions To Survive A Financial Crisis.

    Einstein Suggestions To Survive A Financial Crisis.

    It is incredibly common to hear that money cannot buy happiness, but financial worries often leads to depression, anxiety and stress; who lead as well to more diseases. One way or another, people need money to accomplish their personal objectives. “If money doesn’t make you happy then you probably aren’t spending it right” said Elizabeth W. Dunn.

    Although we concur on the fact that money is not everything in life or even the most important thing. Money guarantees a comfortable lifestyle, and not having to worry about money makes a difference on any person’s life. At Premier Consumer, we think that there are no adversities bigger than a person’s capacities, so if you are going through a rough time, keep reading for some tips on what you can do.

    “At Premier Consumer, we think that there are no adversities bigger than a person’s capacities.”

    Making money is considered a talent, but making money requires a wise administration of time, enthusiasm, creativity and ability to turn challenges into opportunities and ideas into well-executed projects. When countries face an economic crisis, their citizens have a bad time for a period of time, as well as when they live dictatorships. Countries with the hardest histories have learned from them and made them both wiser and more conscious on the value of the things they have. However, clever people are able to find a positive in every negative and make the best of any situation. Albert Einstein had an interesting perspective about crisis, he said:

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

    “Do not pretend that things will change if we always do the same. The crisis is the best blessing that can happen to people and countries, because the crisis brings progress. Creativity is born from the distress, as the day is born from the dark night. It is in crisis that invention, discovery and large strategies are born”

    During a crisis Einstein recommends to be more proactive and creative because people should change their perspective about things, so they can learn to look at things upside down; to look “outside the box”. The crisis brings progress when it is overcome; this means that people can turn a crisis into an opportunity to create a good business if they approach it differently.

    A business is made with brilliant ideas, hard work, constant efforts and creativity. The invention in times of crisis gives people the opportunity to make the creativity a part of their working routine. People need to have new ideas to hold and capture people’s attention. We all get stronger from bad experiences. Einstein explained that the real crisis is the crisis of incompetence:

    “(…) the real crisis is the crisis of incompetence. The drawback of people and countries is laziness to find solutions to their problems, without crisis there are no challenges, without challenges life is a routine, a slow agony. Without crisis there is no merit. It is in times of crisis where the best of each person rises up”

    Each crisis’s thought Einstein had is a warning to lazy people who want to survive a financial crisis without hard work and tons of efforts. The crisis brings people new challenges and opportunities to reach and do something special. Sometimes people perform at their best with the highest pressure, when they are forced to come up with a new plan.

    Read Also: How to Make Effective and Better Decisions

    Carlos Slim is an example about how to overcome a financial crisis. He lived and overcame the famous Mexican’s crisis in 1982. That year many people run away of Mexico, but Slim decided to face that situation and he continued to work in his business. Currently, he is owner of 180 companies and he is considers the second richest man after Bill Gates, according to The Forbes World’s Billionaires list.

    This businessman is a recognized influencer because he is a powerful man who rose up in a country of difficulties. Proof of that is that he is the only Mexican in the Forbes’ list. He started to work when he was 8 years old. Learning since he was young the importance of negotiations and struggle. Here are 5 tips from Carlos Slim who fit Einstein’s philosophy of overcoming crisis:

    1. “Any personal crisis—you have to use it to get stronger.” (New Yorker, June 1, 2009) People need to take benefits from any situation. During the crises, people must be astute and strategic. Each situation has to be faced with enthusiasm and optimism. Also, crisis is an opportunity to develop a new idea and gather a team able to help you to find ideas and solutions.

    2. “Competition makes you better, always, always makes you better, even if the competitor wins.”(Questions and Answers,” Carlosslim.com, 2007) Competition leads to innovation, because people will do their best and be careful about their decisions. Also, competition forces people to focus in their goals and learn from their competitors.

    3. “I don’t believe too much in luck. I believe in circumstances. I believe in work.” (George Washington University Global Forum, October 29, 2010) Success consists in much work, perseverance and creativeness. We are all able to create circumstances instead of making excuses.

    4. “When we face our problems, they disappear. So learn from failure and let success be the silent incentive.” (American University of Beirut, March 18, 2010) During life’s journey, people have to overcome all kinds of challenges and obstacles. For that reason, people have to learn from their failures. Also, they need to take care about each step and plan ahead for future decisions.

    5. Be practical, and have clear and attainable goals(Slim’s top 10 suggestions to current and future entrepreneurs) People have to keep their focus on their goals all the time. Therefore, people need to be clear about their purpose.

    Carlos Slim suggests that one of the best ways to overcome financial crisis is making new businesses from scratch. From Einstein’s perspective people feel motivated to overcome financial crisis because he explains that crisis motivates people to move forward. When things are hard, we learn to react and face rapidly any situations. Successful people are: creative, enthusiastic, and positive.

    In conclusion, crisis can be used in our favor to create new plans and make the most out of economical crises. If you have a great idea, go for it, reach for it. The world needs more people who are able to inspire others and show them how it’s done. Each country needs creative leaders and new ideas to able to impact the world in a positive way. Besides, every person has a talent. For this reason, if you are going through a financial or personal crisis, trust Einstein and get creative, there is always a silver lining.

  • Economic challenges facing millennials

    Economic challenges facing millennials

    Let’s start by defining who the millennials are and why they are called like this: This group corresponds to all the people who were born beginning the 80s, they are more related to digital issues, a public that resists working in companies, they are content creators, persuasive, and they are lovers of challenging banks to conquer them, most of them prefer to use online banking, use services through banking apps and stay long in social networks. This is the main reason why banks have been forced to rule on networks and thus reach this generation directly and faster.

    What are the economic challenges facing millennials?

    • Maintaining a stable income of money: Belonging to a generation that seeks to “Satisfy the here and now” makes it difficult to join a company and receive a formal payment for the services provided. This generation has a lifestyle based on the phrase “You Only Live Once”, saving for the future to ensure financial stability in senior years of life is not part of their plans.
    • Advancement of technology: Although technology is considered an advantage for millennials, we must also analyze the negative side that indicates that these technological advances have in many cases replaced human jobs, this decreases the chances of hiring people.
    • Labor preferences: Millennials prefer jobs that give them the opportunity to do their jobs from the comfort of their home, that allow them to have flexible hours or offer them benefits such as working from home at least twice a week . However, not all companies have these benefits, so they prefer to hire staff to ensure their stay in the company for longer.
    • Competitive labor market: This group faces a competitive market, in which the other generations are willing to assume greater responsibilities, adjust to fixed schedules and for less money.
    • Lack of Financial Education: 2019 has become one of the years in which more information on financial education has been delivered in the United States. Millennials can easily search in the web and find countless topics related to their country’s finances; however, this generation must be promoted and motivated to be interested in researching and analyzing the benefits of living a healthy financial life.
    • One of the most interesting content is this podcast in which Ana María Lusardi, President of the Denit Trust Academic Program of Economics and Accounting at the George Washington University School of Business, talks about how to improve different aspects of financial education with habits as common as saving or practices such as credit.

    In this way, millennials have access to valuable information that can make a difference in their financial lives.

    How the Millennials can improve their future?

    • Savings: Although the survey of 1,003 US Americans,  conducted by Princeton Survey Research Associates International, showed savings habits among millennials, financial education should be expanded to raise awareness of the entire generation and increase this habit thinking about the future since most of those who are saving are not thinking about their retirement.

    The World Economic Forum predicted that by 2050, when millennials from the eight major pension markets begin to withdraw, the retirement savings gap will be US $ 427 billion. ” (According to BBC WORLD)

    • Investments: More than half of US millennials show being proactive regarding investments and demonstrate interest in forming their own businesses and being independent. An excellent initiative that motivates them to take risks is the search for financial stability.

    Read also 8 Tips To Achieve Your Short-Term Goals

    It is a generation with innovative ideas, attractive lifestyles and with particular interests, among them “traveling and knowing the world with little money”, unlike previous generations, their trips are not based on being comfortable but enjoying the “now”.

  • Don’t Waste Food – It Costs Money

    Don’t Waste Food – It Costs Money

    In the Western world, a huge fortune is squandered every day. While we do not see people setting fire to their hard-earned cash on a daily basis, we do know that around a third of the food we spend our precious money on goes in the bin, and that is almost as bad.

    With the busy lifestyles that most people lead today, it’s all too easy to buy too much food. You are at work all day, with maybe just an hour off for lunch, so the only time available for food-shopping will be after work, when you are tired and hungry – the worst possible frame of mind to be in when shopping for food. Consequently, you are more easily tempted to buy items you would not normally buy.  The downside to this is that you end up with cupboards and a refrigerator full of food that won’t get used.

    Earlier generations did not waste food in the same way that we do; they grew their own fruit and vegetables, used cuts of meat that we would not dream of using, baked their own bread and cakes, and saved all the leftovers. In many cases, they would roast a big piece of meat on a Sunday, and use the leftovers for meals for the rest of the week. They had little money, but plenty of time.  Today, for most people, time is an elusive commodity but, if we want to avoid throwing away perfectly good food at the end of every week, we need to re-organise what time we have.

    The food we throw away is not limited to the obvious, like meat bones or fruit and vegetable peelings – although, apart from the bones, these can be put to further use in the compost bin – it includes items we don’t even get around to unwrapping – things like yoghurts, fruit juices, even milk. We even let food sit at the back of the refrigerator because we can find no immediate use for it. Eventually, it finds its way into the bin, too.

    With a little planning, you can work out strategies that ensure that you use everything you buy.  Instead of racing around the supermarket, picking up whatever grabs your attention, you can work to a meal plan. Planning meals a week at a time, and shopping according to that plan, will ensure that you buy only what you need.  When you shop in a hurry, you may find that you end up in the kitchen with lots of different items but nothing with which to conjure up a complete meal.

    Buying meat that goes unused is one of the biggest sins, because meat is so expensive. You can still buy more than you think you need but, instead of plonking it straight into the refrigerator, you can re-pack it into meal-sized portions and place it in the freezer. That way, it won’t start to deteriorate. The same goes for those occasions when you find a real bargain in the meat department and buy in bulk. Stored properly, it won’t need to be wasted or discarded

    Getting into the habit of thinking of the following day’s meal the night before, will ensure that you take the ingredients you need from the freezer in good time. Preparing the vegetables needed for the evening meal in the morning, before work, will mean that you have everything ready to start the meal off as soon as you get home. This will be a real luxury on days when you have to do unexpected overtime at work.

    You can also save money by keeping an eye on how much food gets left on plates. If you find you are serving portions that are too large, start reducing them. The family will still be getting enough to eat, and you will soon start noticing how much further your stock of food goes. If you find it difficult to cut down on the amount of food you prepare, use the excess to make another meal; plated up and stored in the freezer, it will provide an emergency meal for a family member who is late arriving home from work or school.

    When you have finished serving, think about what you can do with any food that is left over. Small amounts can be incorporated into other meals; for example, left over cabbage can be combined with cooked potatoes to make bubble-and-squeak, or cooked tomatoes can become part of the following evening’s pasta dish.

    Read also Five Easy Ways To Save Money On Food Bills

    Our grandparents would not have considered throwing food into the bin. They made the best use of everything because it was a lot harder to come by than it is today. We have convenience stores open around the clock, freezers and refrigerators, and a vast choice of materials in which to wrap and store our food. They had none of these luxuries, which meant they had to eat whatever was available, whether they fancied it or not.

    We already know the cost to our wallets of over-buying, but there is a cost to the environment, too. Most of the food we eat has to be transported to a place of preparation and processing, then it has to be transported to our stores.  We can do our bit to alleviate the environmental cost of all this if we were more careful about how we use the food we buy.  If we stopped wasting so much of it, the benefits to us, our families, our finances and to the environment, could be huge.

    Plan before you shop, think before you buy, and use and store appropriately; your new relationship with food will soon be saving you money.

  • How To Apply For Unemployment Benefits.

    How To Apply For Unemployment Benefits.

    The Government does not let alone people who have lost their jobs and are looking for new job opportunities. Individuals who lost their jobs without having committed any faults and who are willing and fit to work will be able to receive financial assistance. This benefit is subject to the conditions established by each State; local unemployment agencies can provide you with further details.

    Financial aid is not the only benefit the unemployed will be able to receive, the Government also offers several programs and benefits such as job training and the search for a new job, all the information is in the website www.careeronestop.org, this page is sponsored by the U.S. Department of Labor and gives you the ability to:

    • Search for employment online
    • Research salaries by career.
    • Prepare for job interviews.
    • Find employment agencies according to the state in which you live.
    • Find community colleges or institutions that offer basic education and adult training.

    There is the possibility of having unemployment insurance that provides temporary compensation to eligible workers who are unemployed for motives that are beyond their control. The unemployed can file an Unemployment Insurance claim on the website mentioned above, where they must choose the state in which they are living; the same way they will have access to see the status of the application and the payments made if they have already started receiving benefits.

    The request can also be made in person or by telephone contacting the numbers that have been established for each state.

    Nowadays is essential to identify the industry market trends, advanced digital skills, qualified professional profiles, and business culture among other points of interest that must be taken into account when looking for a job. These tips are part of the government’s advice offered to unemployed people.

    Some states may grant up to 13 weeks of extended unemployment insurance benefits when the level of unemployment growths and chosen persons are notified directly by the State.

    Remember that unemployment insurance benefits are taxable, therefore, you must declare any income you have received as compensation and complete the appropriate forms depending on the type of program. If you receive compensation for one year you may need to make quarterly tax payments; however, this information should be verified in the IRS website.

    Unemployment compensation includes amounts received under the laws of the United States or each state such as:

    • State unemployment insurance benefits.
    • Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund.
    • Railroad unemployment compensation benefits
    • Disability payments paid as a substitute for unemployment compensation
    • Trade readjustment allowances under the Trade Act of 1974.
    • Unemployment assistance under the Disaster Relief and Emergency Act of 1974.
    • Unemployment assistance under the Airline Deregulation Act of 1978 Program.

    Read also Financial Literacy: The Path Towards Economic Stability

    Keep in mind that the Government offers assistance if you lose your job and information can be obtained by phone at 1-866-487-2365 (press 2 for Spanish), 1-877-889-5627 (TTY, for hearing impaired), and email: estapagemaster@dol.gov

  • Calculate Your Borrowing Capacity Before Asking For A Bank Loan

    Calculate Your Borrowing Capacity Before Asking For A Bank Loan

    We live in a very consumer society and it is almost impossible for citizens to cope with too many expenses. Besides, global financial crisis have had harmful effects to their pockets, especially during the last years. Thus, for many of them, borrowing money has come to be the way to escape from their hard economical situation.

    These aspects, along with the fact of not having enough capital, can easily turn in a country with a population that cannot spend or repair with ease. Hence, lenders see in your needs an excellent opportunity to make their businesses and borrow you the money to pay everything you buy. But, are you really able to repay the money they lend you?

    Although borrowing is not a bad solution to avoid financial difficulties, you should think carefully how and why it is very important to calculate if you have an appropriate borrowing capacity before for asking a bank loan.

    10 Symptoms That You Are Over Your Head In Debt.

    Pay attention to the following remarks and relate them to your finances before going to the rescue of bank lenders. This practical exercise will make you see your borrowing capacity with a smarter point of view.

    1. How much do you need? Once you understand that your fix consists on a bank loan, the very first question you have to ask yourself is how much money you need. Some people ask for more than their needs because they do not make estimations. As a result, and mainly due to unnecessary interests, it increases their risk of getting into new debts, loss of creditworthiness, bankruptcy, etc. But if you have a good handle, then the money that you borrow will work perfectly according to your personal needs.

    2. Think about your cash flow. Cash flow indicates how much money you have. A very good cash flow projection will show how much money do you receive every month, how much you spend and how much you require to your debts. Thereby, by knowing your personal cash flow, you will see if you are in a position to repay the loan, what modifications you have to apply to your expenses, what you can possibly do to increase your personal revenue, etc. Asking for an amount related to your cash flow will avoid you unpleasant bank calls and allow you to take a calmly breath, whereas your finances keep on the right track.

    “Lenders see in your needs an excellent opportunity to make their businesses and lend you the money to pay everything you buy. But, are you really able to repay the money they lend you?”

    3. Examine the interest rates. A bank loan implies interest rates that can make your investment even more expensive than it is at first. Thus, as part of calculating your borrowing capacity, it is also wise to ask your lender what is going to be the interest rate for your loan. Therefore, you have to relate your personal revenue and your expenses in a way that the interest rates that you are going to pay does not affect your economical stability. So, what are the interest rates offered by the lender and which one is best for you? Since interest rates tend to fluctuate from time to time, is there any possibility of a rate lock? Experts recommend that interests should not exceed your personal net income, which does not include your expenses, additional loans, etc. These observations help you to know what your disposable is.

    Also, know that interest rates vary from state to state. You may meet a local attorney or accountant and ask him the estimated rates valid in your State. Not knowing Usury laws can worsen things for you. Keep in mind that a bank loan must help you to pay what you can, instead of getting you into more debts. This is why calculating a convenient interest rate is so important for a smart borrower.

    4. Loan terms. Calculating your borrowing capacity implies collateral or security loan as well. For example, if you cannot meet the terms described in the loan, you are at risk of losing significant assets. For that reason, care must be taken and see what assets you can lose in case you fail to pay it off successfully. Are you able to pay the loan during the time you are going to agreed with your lender? Is your house at risk?

    You should not miss any detail about payment schedules as part of your loan terms either. How much can you afford to repay? How often? Can you afford monthly, quarterly or weekly payments? Are these aspects considered according to your borrowing capacity? We tend not to think on failure, but evaluating the possibility of being unable to pay it off will avoid additional problems. Do not spoil the future of your family! So, before signing any paperwork, revise loan terms as well!

    5. Credit counseling. Sometimes we cannot solve things by our own, so we may need a hand to go ahead. If you still are in trouble and you believe that your borrowing capacity does not classify for a bank loan, you should contact an expert. Experts, such as an Accountant, have the experience and ability to evaluate your finances. Thus, they will indicate what you can do to improve your borrowing capacity and other financial aspects. At Premier Consumer, our certified credit counselors will be please to advise you. For more information, take a look to our Debt Management Program. This program is useful to handle your debts and get you on the road to your financial freedom.

    The Facts On Credit Repair

    As you see, a good borrowing capacity means a chance for a bank loan. But if you do not calculate it, debts can ruin the future of your family and your financial prosperity.

    he interest you pay on your debt can quickly become very expensive. Use this calculator to help determine just how expensive your debt has become… Cost-of-Debt Calculator

  • Four Ways A Budget Can Help You Manage Your Money Better.

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

    Budgeting is one of the keys to successfully managing your personal finances. It is also one good way to improve your current financial situation. This 680-word article enumerates and discusses 4 specific ways that a budget can help you in managing your money and improving your financial situation.

    If you are thinking of ways to improve your financial situation, perhaps one of the first things that came to your mind is to increase your income either by starting your own business or investing your money in stocks, for instance. But did you know that one of the easiest ways for you improve your financial situation is to create and follow a budget?A budget serves as a guide for you to be more conscientious in your spending. There is nothing difficult about setting a budget. The crucial factor is whether or not you will be able to stick to your budget regardless of any temptation that may come your way.

    A Budget Helps You Live Within Your Means

    A person who lives without following a strict budget has the tendency to spend more than he can afford, especially if he makes his purchases using credit cards instead of hard cash. On the other hand, someone who adheres to a tight budget plan will be forced to set his priorities straight and purchase only those items that he truly needs. The temptation to spend money on things that we don’t really need is much stronger than most of us realize. Marketing companies and advertisers know this, which is why they create products that lure us towards buying those products even if they aren’t really part of our basic necessities.

    A Budget Helps You Be a Responsible Shopper

    A good budget not only eliminates a lot of unnecessary spending but also lets us become more responsible as consumers and shoppers. For instance, if you are following a budget, you learn to take a closer look at the product labels to discern which brand is really better. Also, you are able to read between the lines, as well as see through the subliminal messages included in many advertisements and promotional materials. These skills enable you to be more responsible with your shopping and general spending.

    A Budget Helps You Manage Your Finances More Efficiently

    If you have an efficient management system, you will always be able to navigate your way through any kind of financial situation that may arise. You will also know how to make the right decisions regarding your spending habits. One good example is in the way we use our credit cards. So many people go into debt precisely because of the irresponsible use of these cards. You have to keep in mind that just because you can buy something with a credit card doesn’t always mean you should. You might be able to make a purchase now but you will still have to pay it back when the bill comes or else, the interest will pile up and may very well bury you in debt.

    A Budget Helps You Set Reasonable Financial Goals

    Just because you have decided to follow a strict budget doesn’t necessarily mean that you won’t be able to buy any more luxury items for you or you family. As long as you have your financial goals in place, you can still reward yourself with an occasional treat as long as you are sure that you have the extra money to pay for it. You should also find alternative ways to reach your goals sooner so that you can go a little bit easier on yourself in terms of budget constraints.

    The best way to set reasonable financial goals is to try and see yourself a few years from now and imagine what you would have achieved by that time. Keeping this vision in mind, you can now set the necessary goals so that you can achieve your envisioned future as soon as possible.

    On the way to financial freedom, you will surely have to take harsh measures just like subjecting yourself to a constricting budget but if you are disciplined and determined enough, these tough times won’t last long and you will be able to reach your financial success sooner than you think.

    Remeber to visit our Financial Calculators page here.

  • Protect Your Money By Investing With The Government At Low Risk

    Protect Your Money By Investing With The Government At Low Risk

    The term investment is directly related to money saving, the destination of the capital or postponing the use of the money that has been collected. Investing money refers to giving adequate use to resources, with the aim of achieving some type of benefit, sometimes an economic growth of the investment or simply having the money safely stored, although investments always have a risk.

    In order to invest is necessary to research, no one will find financial stability immediately; you must analyze this type of processes in the long term, but focusing on achieving what you want, whether it is acquiring a home, education for yourself or your children, or even a comfortable retirement.

    The first step is to develop a financial plan to organize your income and expenses, remember that to determine how much you can invest you must first identify your monthly expenses in order to know how much you can invest. Likewise, make a list of the financial goals you have and which are the most important according to your lifestyle, and most importantly, establish an amount of time to meet them, that is, the number of years in which you will strive to achieve them. .

    Once you have identified your monthly expenses, determine which of those expenses can be reduced, you will be surprised when you buy products through discount coupons or find cheaper brands and save to invest later.

    Read also Ten Tips To Go From Consumer To Investor.

    Now, it is important to be clear that when you invest your money you have a greater chance of losing it than when you save it, so take into consideration government bonds and bond funds, they are an option to invest your money at a low risk. They are also called “Fixed Income Securities” this is because what you pay is fixed at the time of sale, that is to say that in advance you can know the profitability of your investment and the duration of the agreement.

    These types of bonds are issued by the United States Department of the Treasury, are a type of investment similar to a savings instrument and are exempt from local and state taxes.

    In the case of municipal bonds, they are exempt from federal income tax and, in some cases, also from state income tax.

    In the event that your particular objective is to invest to pay for university studies or for retirement, there are investments with deferred taxes that allow you to postpone or even eliminate the payment of income taxes.

    The Government has authorities that you can go to when you decide to make an investment:

    • The Securities and Exchange Commission (SEC).

    • The Financial Industry Regulatory Authority (FINRA)

    • The Commodity Futures Trading Commission

  • Three Secrets To Making Personal Finance Work For You.

    Three Secrets To Making Personal Finance Work For You.

     

    What does personal finance have in common with exercise and nutrition?

    In all three areas, everyone would like to incorporate good habits into their lifestyles, but sometimes things don’t always work out. Sound familiar? If you’re one of the many people who have an interest in personal finance but just can’t seem to make the techniques and strategies “work,” then take heart: there are 3 secrets to making personal finance work for you that anyone can learn. Once you know these 3 secrets, you’ll never look at personal finance the same way again!

    Personal Finance Secret 1: Be Yourself.

    Jennie is a college student in New York who would love to save money for a bigger apartment. However, she can barely afford her current apartment’s rent! “I know all about Roth IRAs, 401Ks, and money market accounts,” she says. “It all makes sense. But I just don’t see how I can invest wisely, when I never have any money to put into savings.” Do you see the problem? Jennie is focusing on personal finance techniques that have nothing to do with her current situation. No wonder she is struggling! Instead of studying up on investing strategies designed for people with a larger income, she should be learning how to decrease spending, manage her time better so she can get a second job, or apply for little-known scholarships.

    Take away:

    Don’t assume all personal finance advice is relevant. Instead, be yourself and focus on learning the personal finance strategies that work for you—not your mom, not Bill Gates, and not your supermarket checker—but you!

    Exercise: Who are you?

    Take a few minutes to brainstorm all the problems you see in your life that are related to personal finance. Then hop on Google or another search engine and type in the biggest problem and the word “forum.” For example, Jennie’s search might look like “afford new york forum.” Wow—over 700,000 results! You may need to tweak your search a little until you get relevant results—the goal is to find groups of people who are in a similar financial situation to you. Then, click into the various forums and see what folks are chatting about. Chances are, you’ll pick up some fantastic new ideas, a few book recommendations, and a surge of confidence to solve your own personal finance problems.

    Personal Finance Secret 2: Be Proactive.

    Omar’s finances are in a mess. Overdue credit card payments, mysterious bills, and wildly fluctuating bank balances have become ordinary occurrences. Omar hates feeling this out of control, but he’s given up on personal finance tools. “I’ve read hundreds of personal finance books, and none of them help,” he says. “I mean, I know I should be keeping track of how much I spend, and stuff like that, but it’s too hard to remember.” Omar’s problem is that he doesn’t put personal finance techniques into practice. He assumes that they won’t work for him, or gives up after a couple days. “Some people are good at personal finance, and some people aren’t.” Do you agree? If so, then like Omar, you may be feeling so overwhelmed that you never get to the point of taking action.

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

    Take away:

    If you don’t put personal finance techniques into action, nothing will change. Instead of trying to come up with a grand solution that solves all your problems at once, start small. Pick only one area of your life in which to improve your personal finances.

    Exercise: What are you doing?

    Choose one spending area: work, transportation, entertainment, bills, food or anything else you can think of. Now, brainstorm subcategories. For example, a subcategory of “bills” is “utilities.” Again, go more specific—for example, “water.” Now ask yourself how you can reduce your water bill. Get even more specific: how can you reduce your water bill in the kitchen? In the bathroom? On weekends? In the morning? Omar decided to reduce his bathroom water usage by turning off the water while brushing his teeth. He then posted a chart next to the sink and ticked off each day he remembered to turn off the tap. What will you choose? Make it something easy to stick with. Don’t worry if it seems too small to make a difference. If you succeed in a small thing, you’ll gradually be able to add more and more good personal finance habits, one baby step at a time.

    Personal Finance Secret 3: Be Flexible.

    Hannah and Doug are wondering why their finances have gone downhill in the past year. “We’re doing all the same things we used to,” Hannah says. “We put money into savings, we track our spending, and yet we’re not getting any closer to our goal of retiring.” Sure, they’re doing everything the same. But has anything else changed? Well, Doug’s heart condition is getting worse and they had some unexpected hospital bills. In addition, Hannah quit her corporate job and now works as an independent contractor. She actually makes more, but the paychecks are irregular. Like Hannah and Dave, you may be struggling because you haven’t adjusted your personal finances along with important life transitions. Do you dress the same way you did ten years ago? Probably not. Then why would you try to use personal finance tools that worked for you ten years ago, if they don’t work now?

    Take away:

    Don’t assume you can leave your personal finances on auto-pilot. Every time you go through a life transition, re-evaluate your financial situation. Even if you seem to be doing fine, it’s worth exploring new resources—you never know when you might find a better strategy.

    Exercise: How have you changed?

    Draw a line down the middle of a sheet of paper. In the left column, jot down all the transitions you’ve been through in the past few years: marriage, having children, pursuing higher education, changing careers, moving, adopting new hobbies, and so on. On the right-hand column, write how this transition affected your finances. For example, Hannah wrote, “started working freelance” on the left. On the right, she wrote “saved money on gas, spent more on home office, had to use credit cards to pay bills some months, made more money than expected other months.” Now head to the internet to do some research. For example, Hannah and Doug looked for “managing finances for freelancers”—over 200,000 results. Use this technique frequently to keep you flexible and help you take financial control of your life transitions.

    Read alsoThree Steps to Improve Your Finances .

    Now that you know the 3 secrets to making personal finance work for you, you can apply them to any system. If in doubt, just ask yourself the three questions: “Who am I? What am I doing? How have I changed?” Like magic, the answers to these questions will get you back on track and show you the best steps to take. You really can make personal finance work for you.