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Show your kids that needs and wants are two different things. The best way to teach our kids to be smart consumers - and savvy savers - is to model good behavior for them.
I'm big on setting goals, but I also think that if you have too many lofty ambitions and set goals for everything, you can sabotage your efforts by overextending your brain.
You may be basing a portion of your self-worth on your bank account without even realizing it. Try to pinpoint the activities and qualities that, free of charge, fulfill you.
After two decades of personal finance reporting, I've heard every excuse in the book for not saving money. That said, none of them really hold up - at least over the long term.
If you're filing bankruptcy, you will likely want to hire an attorney. But for debt settlement, a company is sufficient, or as I said, you can often do the legwork on your own.
Do you have an emergency fund? If not, build one - aim for three months of expenses to start, then boost it to six. It will ease your anxiety and get you out of a potential jam.
By definition, saving - for anything - requires us to not get things now so that we can get bigger ones later. That's hard. Our brains are hard wired to prefer the here and now.
If you are, consolidating at a lower interest rate can help you pay off your debt faster. But if there's even a small chance that you'll spiral back into debt, it's not for you.
If salary is your most important consideration, make sure you don't take too much time off beyond the allotted 12-14 weeks of maternity leave - and certainly don't leave altogether.
Unless you have multiple accounts that you need to negotiate and you think the project is just too big to tackle on your own, you're better off just calling your creditors directly.
Whether you're replacing one appliance that's seen better days, or many because you're moving or renovating, you probably know to look for the Energy Star label. That's good advice.
Too often, we make budget cuts - then blow the savings. Instead, think about your financial picture. Do you have high-interest rate debt? Paying it off faster will save you a bundle.
Resilience isn't a single skill. It's a variety of skills and coping mechanisms. To bounce back from bumps in the road as well as failures, you should focus on emphasizing the positive.
One way to make sure you don't lose assets in the future is to streamline your accounts. Consider using one bank for all your banking needs and one brokerage firm for all your investments.
Buy experiences, not things. Spending on experiences makes people happier than spending on things. Things get broken and go out of style. Experiences get better every time you talk about them.
Many people focus on the 4 percent rule, which essentially says that as long as you withdraw no more than 4 percent from your retirement accounts each year, the money should last you 30 years.
Web banking lets you monitor your spending, tweak your budget, schedule payments, and more, particularly if you marry your online bank with the personal-finance management tools available online.
Women take fewer financial risks than men do, but not because we're wusses. Both sexes secrete the hormone oxytocin in stressful situations, but women secrete more of it, which helps us stay calmer.
Save for your goals. Take note of what's coming your way - vacations, the holidays, what ever is going to cost you money - and start saving ahead of time so that you have a stash when the time comes.
You can cut the fat from your spending: Stop taking taxis, call your cable company and ask for the same deal new subscribers get, have dinner at home and then a drink out instead of a $100 meal with wine.
If you have had the same dishwasher for 10 years or more, don't bother repairing it. The average dishwasher is expected to last nine years, and you've most likely squeezed as much life out of it as you can.
After explaining why you're in trouble, ask the creditor if the company would be willing to accept a smaller amount. Start negotiations at about 30% of the total amount due, with the end goal of paying 50%.
If you are able to settle, you'll be getting off rather easy. Debt settlement companies can sometimes get you off the hook for a large percentage of your debt - in many cases, up to 50% will be written off.
While it's true a small treat won't blow your budget, indulging every day could - the same way a slice of cake probably won't hurt but, if you make it a daily habit, you may have trouble fitting in your pants.
By the time most people file for bankruptcy, their credit is already trashed, they have a high debt-to-income ratio - a key indicator lenders look at - and they've likely defaulted on more than a few accounts.
Face your financial issues head on. Open your bills, pick up the phone, call your lender. If applicable, tell them you're struggling and explain why. If you lost your job or took a pay cut, be ready to prove it.
People with financial plans are much more likely to feel prepared, even in tumultuous times. They're more likely to feel that their dreams and goals are secure. And, oh yes, they do actually save significantly more.
Debt certainly isn't always a bad thing. A mortgage can help you afford a home. Student loans can be a necessity in getting a good job. Both are investments worth making, and both come with fairly low interest rates.
When you default on a secured debt, the creditor takes the asset that backs up that debt. When you convert credit card debt to mortgage debt, you are securing that credit card debt with your home. That's a risky proposition.
There's a laundry list of reasons why not to borrow from your 401(k). While the money is on loan, it's not working for you - and if you leave your job, you'll have to pay it back in 60 days or treat it as a taxable withdrawal.
You also need to understand that when you consolidate credit card debt into mortgage debt - like a home equity loan or a HELOC [ home equity line of credit ] - you're taking an unsecured debt and turning it into a secured debt.
I love a hotel that offers Wi-Fi Internet access, especially if it's free. But I never access sensitive information, like my bank account or an online shopping site that stores my credit card information, on a public Wi-Fi connection.
Sometimes a creditor is willingto do this as a bargaining point - you give the creditor cash in hand, it gives you a positive listing on your credit report - even though you haven't paid the full amount. Get this agreement in writing.
You have no control over the market. You can't predict where it will go, and you can't bring it back from the depths. What you can do is save more. Make sure you have cash on hand - an emergency fund of at least six months of expenses.
Most credit cards provide some sort of protection against a defective purchase, and with gold or platinum cards, you'll often get double the manufacturer's warranty. You're also not immediately out your own money if something goes wrong.
In a relationship where finances are shared, it's important that both people know what's going on. If one spouse likes being the family accountant, it's fine for that person to take the lead, but the other spouse shouldn't be in the dark.
It doesn't help to follow every rise and fall of your portfolio. It's better to tune out the day-to-day shifts, in fact. But getting a handle on the larger picture will make you feel more secure, and that goes a long way in calming your fear.
You'll get the biggest bang for each buck by paying off the highest interest rate debt in your portfolio first, while making minimum payments on the remainder. It's called the avalanche method, and it gets you out of debt cheapest and fastest.
These days, checks are direct-deposited, money comes out of a machine in the wall, and we swipe a plastic card to make a purchase. In other words, your kids can grow up thinking money comes in an endless supply if you don't show them otherwise.
To bring down your credit card balances, write down the benefits of reducing your debt. No more gnawing feeling that you're throwing money away, perhaps. More money flowing to other financial objectives. Then consult the list when you have doubts.
Turn down offers for new cards or credit line increases on your current cards. Credit's tight, and chances are, you're not getting many offers anyway. But if you do, remember that the less credit you have available, the less trouble you can get into.
If you live in a yard sale kind of neighborhood - in good weather, most neighborhoods are crawling with them on weekends - do a sweep to see what the competition is charging. No one is going to buy your $7 book if they can get it down the block for $1.
People who are passionate about what they do reach financial comfort and wealth more often than those who are not. That argues for doing one of two things. Finding your passion and pursuing it. Or becoming passionate about what you're already pursuing.
The older you are when you buy an annuity, the shorter your life expectancy will be - so the greater a monthly paycheck the same sum of money will buy you. When interest rates are higher, the size of the paycheck for the same sum of money will rise also.
If you're just starting out in the workforce, the very best thing you can do for yourself is to get started in your workplace retirement plan. Contribute enough to grab any matching dollars your employer is offering (a.k.a. the last free money on earth).
Pay cash. For some reason, it's harder for people psychologically to part with their cash than it is to swipe a card. Maybe it's the act of physically seeing the money change hands, or maybe it's because you don't want to break a $20 for a $2 cup of coffee.
Automate your savings so that you have money taken directly from each paycheck and deposited into a 401(k) or other workplace retirement account. If that's not an option, automatically have money transferred out of checking into savings each time you get paid.
You could lose hundreds or thousands one day on paper and gain it all back the next, and it has literally no effect on your immediate future, provided the money you have in the market is money you're investing for the long haul (meaning at least three to five years).
Your credit score takes into account years of information in most cases. It's not going to improve in a day. But it may improve more quickly than you think. Generally, the last 24 months carry the most weight, so if you can keep clean for that long, you'll see a boost.
You fall a bit behind on a credit card bill, your interest rate soars, your minimum payment rises, and you start falling more and more behind every month. You don't see an end. But you don't want to file bankruptcy either. What you can do - and should do - is negotiate.