Debt Suggestions » budget

10 Essential Money Skills for a Bad Economy

admin — Fri, 27 Feb 2009 15:13:56 +0000

The economy is in a shambles. The stock market’s down, unemployment’s up, and the housing market is still skidding sideways. The people I know are beginning to get nervous. They’re worried that the recession will turn worse, and that their personal finances will end up in ruins, too.

When it comes to money, the best defense is a good offense. The best way to avoid fallout from the national economy is to take control of your personal economy. By developing smart financial habits, you can remain calm even in the midst of a financial crisis. (Well, mostly calm, anyhow.)

10 Steps to stop shopping addictions

admin — Mon, 03 Dec 2007 16:27:39 +0000

Do you own every gadget known to man (or woman)? Does your closet contain lots of shoes or clothes that you almost never wear? Are you feeling lost without credit cards? Do you come home with things you didn’t specifically go to buy? Do you use shopping as a quick fix for the blues? Do you spend more than you can afford? Are neighborhood malls and Internet shopping sites possess a mesmerizing magnetic appeal for you?

If you answered yes to several questions above, you are probably shopping as a recreational activity. You have a condition called Oniomania. It is also known as shopping addiction or shopaholism, is the compulsive desire to shop. People who shop or spend compulsively get a feeling of being “high” from the experience. This translates into endorphins and dopamine, natural receptor sites in the brain, getting turned on, creating a “good feeling” and reinforcing the desire to shop or spend.

Credit cards facilitate the spending of money as well as mail orders via catalogues or the Internet. In America, shopping is embedded in our culture; so often, the impulsiveness comes out as shopping addiction or compulsive spending. Shopping addiction and compulsive spending can put a strain on both your finances and your relationships. In other words, shopping addicts buy more than they need and spend more money than they can afford, in an effort to make themselves feel better. It can wreak havoc on a person’s life, family, and finances.

Here are the 10 simple steps to stop the cycle of shopping addiction and compulsive spending:

1. Identify a “need” from a “want.” Learn to recognize wants from needs, and practice controlling your impulses to spend your money on things you don’t really need, and you’ll be able to change your spending habits and end up far ahead financially. Before buying anything, ask yourself if it is a need or a want. If it is a want, let go of the item.

A need is something you have to buy, such as groceries. It may also be a new pair of shoes to wear to the office if your present pair is no longer in good condition. A want, on the other hand, is something you just desire but can do without. Examples are a new CD or DVD, a nice-looking hand bag when you have a dozen other hand bags at home, and a cellphone that’s loaded with so many features.

Get out of debt, with a budget

admin — Fri, 21 Sep 2007 15:59:09 +0000

Don’t spend more than you make! The key to getting out of debt is to not stay in it with the same bad habits. Credit cards are a huge convenience, however it’s much easier to swipe a card than to let go of a 20 dollar bill.

Commit to making a change, you’ve got to stay motivated.

If possible switch entirely to using cash, it’s a lot easier to stay motivated when you can physically see the money leaving your hand.

Sit down and do some math, figure out how much you owe, how much you make, and your “must have” living expenses.

Once you know how much you owe you can draw up a budget, including a schedule for repaying your debts. Be realistic and work out what you can afford to repay and still stay within your budget.

Be careful with daily spending…if you don’t pay attention to the need to conserve money you will just continue to prolong the problem.

Switch to another credit card company who’s offering no interest on balance transfers for 6 months. This is a good way to buy some time and save on that ever growing interest payment. Be careful though, make sure you read the fine print.

If you’re carrying a large debt, ($3000+) then consider a debt consolidation company. They would love to make money off you, use their greed to get your out of the hole. Shop around and look for the best offer, the first place you find won’t always be the best choice/offer.
Don’t borrow any more money or take on any more debts until you have repaid what you already owe.

A few neat web based budget tools:

indybudget.com
budgetpulse.com
budgetedge.com