Cold French Fries . com » budget

Stopping the Collection Calls

marcus — Tue, 29 Jun 2010 12:00:32 +0000

Not responding to collection calls and letters will only make your life miserable. If your personal finances are in dire straits and you are unable to pay the full amount dues on your monthly financial obligations, then you need to bring your creditors and those in which you are indebted up to date on your financial abilities. However, if you are only able to make a partial payment to your creditors…prepare to make the payments. If your creditors are unaware of your financial circumstances and you do not answer their calls or letters, then this frustration of seemingly creditor harassment will never subside and the creditors have only to assume you have abandoned your responsibility and financial commitments with them. If you don’t respond to their calls you could face heavy collection fees, further declining credit, law suits and income or bank account garnishments. Call your creditors and have your account noted on your new financial situation. You may find your financial institutions offering payment extensions or plans that will better meet your new financial ability until you are able to more comfortably manage your debt. But most important …follow through with your promises to make those new reduced/partial payments and if something new comes up financially…for better or worse….do not hesitate to communicate clearly again your newer situation and a new feasible budget to repay your debt. Additionally, I would suggest if you make partial payments that you should include an explanation letter each time a partial payment is sent as well as make payment more frequently than once a month to show a greater effort to satisfy and meet your financial responsibility. Some creditors will not be empathetic to any financial turns your life has made, but in case you ever find yourself in court with these creditors, the fact that you tried to remedy your inability to make full payments with regular partial payments will speak volumes in your defense and may influence a lenient decision in your favor.

Holiday Financial Fitness

marcus — Tue, 24 Nov 2009 17:58:51 +0000

No time of the year can be more detrimental to one’s personal finances than the next 6 weeks of holiday celebrating and shopping. Between, shopping for gifts, preparing large meals, entertaining and friendly gatherings, a household budget can become strained and cause people to rely on credit cards, savings and even expensive payday (or auto title) loans. Many employers pay employees early during the holiday season so future income can be used to manage the increased expenses that accompany holiday preparations. However, households need to adhere to financial plans and their holiday budget…you should have a budget for holiday shopping…a holiday budget can help prevent the “too good to be true” moments in shopping and picking up the tab after running into the old friend at the bar. Don’t get caught in the trap of using too much of your early holiday pay before the month ends. This could lead to a shortage of available cash to carry your personal finances into December. And remember gift giving month of December is notorious for robbing households of the gift of financial stability.

Paying Bills vs Budgeting

marcus — Thu, 19 Nov 2009 12:00:02 +0000

Early in my adult life and financial education, I worked full time while going to school full time. I was very familiar with experiencing “more month than monthly pay.” I couldn’t understand why I was rarely able to meet my monthly obligations because on paper I earned more income than I owed each month, especially considering I didn’t have a car, ate most meals at the restaurant I worked and held no credit cards. But after being fed up with being broke I set with my roommates to discuss the household finances, I found that our laziness and disregard for proper budgeting had put us further into debt and prevented us from improving our personal finances. Each time we paid utilities we either paid late or paid partially and consistently incurred late charges. We encountered the occasional disconnect (and reconnect) fees, all which were satisfied the same day and were surely preventable. Consequently, the utility companies required larger cash deposits…more money. Because we chose to simply “pay our bills” instead of prepare a budget, we had chosen to react rather than act in the best interest of our finances. Remember to set aside for what expenses you know are coming….create a real or mental account that pays utilities and pay a monthly average into the account for recurring expenses. Even inquire with service providers and creditors, if they provide a discount to set up a direct electronic pay/withdrawal with your account…if there isn’t a discount, ask for one and write a letter to suggest one.

marcus — Wed, 21 Oct 2009 12:30:13 +0000

The budget deficit is at $1.4 trillion….the highest mark since World War II. However, considering all the economic data, the $1.4 trillion is understandable and a sign of the economic times the nation is experiencing. One must remember that the government gets a bulk of its money from the taxpayer and with the nation suffering the highest unemployment level since the Reagan era, there is less income to tax. In addition, the government has stepped in to prevent the banks and industry giants from failure and thus heading off further tailspin of our economy …and even the world economies. Of course, the two wars being fought is not a pro bono service of the US military and those expenses are only significantly adding to the budget and consequently the deficit. The cost of the lost jobs, failing/rebuilding industry and war results in a $1.4 trillion deficit. As the nation’s industry redefines itself and gets back on track, the jobs will increase and income tax will flow again to cover the present deficit…but there will be other things to create another deficit then. Just remember that the $1.4 trillion represents roughly 10% of the US economy. And while 10% is a huge number, the country is still able to pay its bills and the economy improving….for now.

More Month than Monthly Pay?

marcus — Wed, 14 Oct 2009 12:30:20 +0000

Any unplanned and/or unaccounted for holiday can leave a month feeling a little “longer” for anyone living on a “month to month” budget. Particular attention should be given to the holiday months and the high expenditure amount associated with this time of the year. Typically, the time spanning from Thanksgiving to New Years place an unnecessary burden on household budgets yearly. Remember to pay month financial obligations prior to shopping for dinner parties and holidays gifts. Additionally, do not rely on holiday bonuses or overtime pay. As many employers are still reeling from the fallen economy, your personal finances should not rely on past performance of employers’ generous compensation practices during the holidays. By addressing financial obligations first and considering annual financial “surprises” a household can trust bank balances and control spending during the holidays. Just imagine…starting a new year with a positive bank balance and a lack for need of debt instruments to manage finances through the holidays will be a step in the direction of financial literacy and security.

What to do with a “Chunk” of Cash

marcus — Tue, 13 Oct 2009 12:19:10 +0000

As companies are laying off personnel and employees are choosing early-out options on retirement, many people are found with a “larger-than-pay-period” check in their hands in the form of severance pay. These compensation payments place large sums of cash in the hands of people after lean financial times and leave the recipient facing tons of options that will have a huge bearing on their immediate and distant financial future. Thoughts of investing in the financial markets, long sought after trips and cars, new businesses, paying past due debts and maybe buying a handful of lottery tickets may cross one’s mind. However, one thing that should come to mind is the security of your financial future and the necessary focus that should be given to it. If the money that is received is a portion (or entirely composed) of retirement funds, then a professional financial planner (or two or three) should be consulted to insure your retirement goals remain addressed. In addition, pay particular attention to an often forgotten, but inevitable aspect of finances, insurance. Insurance protection will stave off the effects of accidents… whether health, employment or finance related. While paying past due debt is of major importance, priority should be placed on various aspects of one’s financial status and attention given to areas that may have been neglected during financially leaner times. Afterall, if the money is received after lost employment, some measures must be taken to care for times when income may not be in existence. Speak with several financial professionals, regardless of your plans, to insure all financial options are discussed and intelligently considered.

Pre-Holiday Budget Prep

marcus — Mon, 12 Oct 2009 11:45:43 +0000

Okay, the holidays are here. …I was lured to purchase candy by a Halloween display…away from the regular candy aisle. In addition, I witnessed large quantities of canned pumpkins and cranberry products being stocked. Later, while watching the ball games, I noticed creditors gearing up for the spend-crazy, winter holidays. The creditors flashed images of families being brought together by the gifts being purchased with the featured credit cards all while the airwaves are filled incentives and sweepstakes for each time purchases are made with a credit card…it made me 2nd guess not using my credit card to buy the Halloween candy. So you have to ask yourself why are the merchants and creditors positioning themselves for a good game of consumer frenzy but you haven’t? This is a great time to organize your purchases and do comparative shopping for those that you feel must be included in your holiday planning. The merchants and creditors should never put more planning into how to manage your buying decisions than you.
If a budget has not been started for the remaining months of the year then get a jump on the new year’s resolutions and decide to who is on the list and who is not to receive something now. Visit an art store and make simply gifts for friends and family. Gift making (or assembling) could be a great get- together for friends and family and “kills” holiday dinner and gift giving efforts, all at one shot. Plus, you can save tons on purchases for those close enough to receive a holiday inclusion gift, but are outside of the budget, with a handcrafted or baked (yet inexpensive) gift. Additionally, consider the “change of season” sales as an opportunity to prevent the holidays from becoming too much on your wallets. Most of all remember the holidays and giving are all great, but do not make the new year’s a difficult period to financially swallow because of a lack of simply thoughtfulness for one’s self and financial position.

Back to School on Personal Finances

marcus — Wed, 16 Sep 2009 13:00:00 +0000

Kids have returned to school and between supplies, clothes and books needed to help those little darlings learn as much as possible, now is also the perfect opportunity to educate your youth on some sound principles of personal finance.

Allow kids to view and tabulate receipts for some or all of the goods purchased for school.

Assist in creating a weekly or monthly budget for lunch payments or for the purchase of food items to prepare lunch at home.

Involve kids in the decision to pay more or less for a desired item as it relates to the risk of affordability of another item wanted/needed .

Allowing your kids to participate in the household finances is as imperative to financial literacy as exposing a budding swimmer to deep water. The budding financial literate must be able to experience the “feel” of participation to fully understand the ebbs and flows personal finance. And simple waiting until your kid gets to college is allowing the “new-ness” of independent college life to compete with the financial choices that will guide your child’s life into adulthood.

However, college kids, finances and credit cards do not have to be a nightmare. When it comes to credit card use and the college students, set usage guidelines and establish spending limits with the card issuer to request co-signers approval. Perform a monthly review of the statement with the student and offer congratulations and criticism where necessary.

6 Financial Exercises to Strengthen Your Credit Scores

marcus — Thu, 25 Jun 2009 04:08:32 +0000

Each summer millions of people rush to the gym to improve their health and physical image in preparation for fun times in the sun. However, what’s a great outer appearance if your financial stress is eating cutting years off your life expectancy? However, don’t give up your exercise regimen; just begin some simple but good financial exercises to sharpen your financial literacy quotient and improve your credit scores.

1. Read the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681. Reading the FCRA will give you a better understanding of your rights as a consumer and credit holder. In addition, the FCRA provides the acceptable procedures to inquire on issues concerning mistakes and inaccuracies on credit profiles with creditors and credit reporting bureaus.

2. Review your credit report for accuracy – The summer’s a great time to review your credit profile and report, especailly since over 70% of credit profiles contain errors. Check for any inaccuracies and dispute these mistakes found to the appropriate credit reporting bureaus immeidately. In addition, if late payments appear on the credit report that do not coincide with your budget records or check register, review your older statements for previously unnoticed late charges. Challenge any and all inconsistencies immediately, so that your credit profile is always portrayed accurately…you never know when you may need access to credit, but not have the time necessary to fix the reported inconsistencies.

3. Remember to keep the balances of revolving credit accounts below 40% of the available credit allowed by the creditor. Your credit scores are partially tabulated by the ratio of available credit to total debt. So if your credit balances are higher than your available credit, then your credit report will reflect a lower score. Carrying higher balances illustrates a higher need for credit to manage one’s finances and is a sign of poor debt management and financial planning. In addition, the summer time is a great excuse to “throw” something on the credit card, but remember the rule that if the price is too much to pay in cash, then it is probably too expensive to place on a credit card as well.

4. Create a summer budget that will allow you to happily experience your summer, eliminate debt and encourage saving. You know the vacation you want and the costs associated, so create a save and plan for the vacation, while maintaining your living expenses. Remember that there are seasons that will follow the summer and you don’t want to face them with a depressed budget and declining credit scores.

5. Pay all creditors before leaving for a vacation….whether the payments are due or not. Timely payments make up about 30% of one’s credit score. Vacations can offer a plethora of excuses why one should “go for it” on various expenditures and abandon budget boundaries. Imagine coming home from paradise to late-fee riddled, overdue credit statements because that para-sailing offer from your vacation guide was too good to turn down or the credit card statement arrived the day after you left for a 2 week vacation.

6. Place the gym membership on hold during the summer. It’s nice outside and there’s plenty to do to burn calories. With the membership savings, one could pay down the balance on a credit card on which the membership is billed and buy a fitness book on exercises done outside of a gym. In addition, don’t forget to place any monthly billed memberships on hold before going on vacation. If you’re not in town and unable to use these membership, then save that membership fee until you are back home and extend the expiration date.

With a little planning, pushing and pulling you can get yourself in great shape above and below the belt and enjoy your summer with good looks and peace of mind.

Investing in a Down Economy

marcus — Wed, 10 Jun 2009 19:35:26 +0000

I always know when a state’s lottery has reached an unusually high amount by the lines in the stores selling lottery tickets and the general buzz around offices and at the popular lunch spots. It seems most of us are all drawn to financial wealth of enormous proportions and even more so, when the wealth can be achieved in one simple effort. Whether a lottery ticket, a casino visit or a stock market purchase…it’s all a gamble for riches. And yes, the financial markets are a gamble….I consider them a sort of thinking man’s lottery
Just as the high-paying lotteries cause a buzz around the water cooler, the depressed economy and slagging stock market has interest brewing among budding investors looking for a “inexpensive” investments that can bring in “quick, easy and high” returns. These new investors are looking to follow the number one rule of investing, “buy low” and “sale high.” A tidy profit can be made investing in an older, reputable company with a declining stock because of decreased sales, however, the company may not return to its prior market share once the economy rebounds…and that’s a huge risk to take for a novice investor. Investing in companies that are not doing well in this economy can deliver a great profit later down the line, but not without a high risk of posting a loss. Buying a great company with a hole in their current financial position is like being captain of a boat that’s sinking, but really close to shore? There’s no telling whether that ship will sink offshore or make it to a safe harbor. In addition, there are lots of safer boats in the harbor to consider.
Many of these struggling companies are filing bankruptcy for protection from their creditors and for a chance to keep their doors open, but bankruptcy courts are loaded with familiar household-name companies that are closing their doors forever. Coincidently, in bankruptcy court, the common stock owner is the “last in line” on any financial claims and is usually left empty handed. Of course, in the 80’s Chrysler stock plummeted as the company endured a drawn out bankruptcy, but once it emerged, Lee Iacocca led the company’s stock to return a handsome profit to all those that bought the stock at it’s all time low price. But yet another rule of investing (and rarely heeded,) is past performance of an investment is not an indication of future performance of the same investment.
I’m not saying investing for short term gains is a bad idea. There are basic investment principles on which good investor habits can be practiced to garner decent returns on investing, but investing in a company that is doing well during a hectic economy may be a better bet and a sign of a strong company and product. The profit return may not be as great on a stable company as the riskier stock, but one of these companies will come out of the down economy and the other one MAY survive. But before investing money into the stock market consider one last rule of investing…all the money you invested could be lost. Like the lottery and casino, if you don’t play, you can’t win, but there are no practice rounds and no refunds on losses.