August 2008 Archives

Credit counselors help consumers manage -- and ultimately lower -- their debt.  They promise to negotiate with creditors, create payment plans, and lower the interest rates of those in debt.  A credit counselor's ultimate goal is to help you eliminate your debt. 
 
If you are in debt, a credit counselor will do 3 basic things for you:

1. Credit counselors help you consolidate several monthly payments from different accounts into one monthly payment.  The single payment is usually much less than the sum of the payments you were previously making.
 
2. Credit counselors get your creditors to reduce the interest rates on your credit accounts.  For example, a credit card with an interest rate of 30% may be reduced to as low as 5%. Or they may be able to eliminate interest payments altogether.  This will help you pay off debts faster.
 
3. Credit counselors help you bring delinquent accounts current.  They re-age the account by getting the company to list the account as current after you make several payments on time.

Can you get through a month with only $250?

I could not.  I know for a fact that my family spends at the least $100 a week on food and non necessities.  At worst, we might spend $200 a week.  This does not include housing expenses, savings, and insurance payments. 

Monthly Budget Experiment #1

I just read an article at Small Notebook where they spent the month of July (both this year and last) with a budget of only $250.

Of course, that $250 did not include money spent on tithes and other gifts, rent, insurance, bills, health expenses, work expenses, savings, and investments. 

The items that were being limited were food, gas, clothing, coffee, household necessities, and entertainment. 

The goal of the experiment turned yearly tradition was “to stretch ourselves to become more mindful and disciplined about the money we spend, and to save some extra money in the process.”

In the end, the bulk of the money was spent on food and gasoline.  They managed to splurge a bit at the end of the month on coffee.  So basically, they were able to do without buying new items for the home and clothing for a month.  They also forced themselves to eat foods they already had in the pantry and freezer.  Writing about their progress has inspired many others to do the same. 

This group was not alone...

This is a hot topic.

Earlier, Andrea mentioned 8 fun and easy ways to save money on gas. Plus, even more ways to save at the pump and tips for squeezing the most out of each fill-up.

Believe it or not, I've found a few more ways to be energy-efficient and save on fuel that I'd like to add to that list.

By the way, did you know that gasoline takes up 5% of the average household budget? That's up 21% from a year ago. (Source: Money, July 2008)

Once a year, every former and current American worker aged 25 and older receives a statement in the mail that summarizes the estimated benefits they will receive upon their retirement or death. 

In addition to these automatic mailings, workers of any age can also request them from the Social Security Administration. 

The purpose of these statements is to help with your long-term financial planning, to ensure that your information is correct, and to inform the public of disability protection and death benefits allowed to a family. 

Here is a sample Social Security Statement:

The teen years often set the course for a person’s adult spending habits.  For that reason, it is wise to attempt to influence a teenager's spending habits as early as possible.  

Perhaps the easiest place to begin is with your teen's clothing & accessories, gadgets, and electronics.

I know.  What kind of a question is that? 

Of course, no one is ready for their spouse to die!

But it may happen unexpectedly one day. And you should do your best to be prepared in the event that it does.

If you are looking for a job (or a second job), you might be discouraged.  It seems that jobs are few and far between these days. 

However, if you extend your job search to a few specific industries, you may find that there are quite a few industries that are actively hiring right now. 

Here are some places you may want to look to find a job, or possibly even... to start a business.