This is default featured slide 1 title
This is default featured slide 2 title
This is default featured slide 5 title
 

Monthly Archives: March 2017

Money Management Art

People differ in their artistic taste. A piece of art that might not appeal to me might be the favorite piece of someone else. There are several factors where people opinions will differ in how they manage money.

# Risk Tolerance – An adult with ADD will be more likely to take risks with their money than the average person. Everyone has a different risk tolerance and as long as you understand and are comfortable with the risk then it is a proper way to manage your money.

# Lifestyle Choice – Everyone has a different definition of how much money they need in order to be satisfied with their life. This helps define how much money you need to earn now and how much money you need for retirement. A savings goal for one person can seem ridiculously low to another, yet both can be proper choice depending on lifestyle.

# Time spent – Everyone gives money management a different priority in their life. Someone who spends more time on money management will be able to more efficiently handle their finances. This does not mean that everyone needs to spend a lot of time managing their finances, but you have to accept that if you do not like spending time with your finances there are going to be opportunities to save or make money that you will miss.

Without the proper technique you are likely to create a bad piece of art. While there is not one right way to manage your money there are many ways to mismanage your money.

# Not paying your bills on time – Will ruin your credit score and your ability to get money when you need it.

# Not understanding contracts or agreements you are signing – For example if you are not carrying the insurance that you need and a disaster strikes, you will be in financial ruin. If you are carrying insurance that you don’t need you are losing money that could be used to invest or pay down debt

# Not understanding where your money is actually going – It is easier for an adult with ADD to lose track of what they are actually spending their money on. It is important to review your bank statement and to keep a journal of what you are paying cash for, in order to make sure that your spending is actually matching how you want to manage your money.

The way that you manage money is a reflection of how you are actually living you life. Life is the ultimate form of art. By viewing money management as a personal reflection of your self, this should enable you to take more control of the day to day money decisions that is going to have the greatest affect on your finances.

True Wealth

Ebenizer Scrooge of Dicken’s The Christmas Carol was very wealthy for his time, but before meeting the three ghosts of Christmas past, present and future,
he lived a miserable life, too cheap to even heat his own apartment.

Meanwhile his clerk, with his many children, was portrayed as happy and loving – a great father.

Of course this is fiction, but is there any truth to the story?

Many people will work incessantly trying to accumulate more and more wealth, but a trite joke is that their last words are never: “I wished I spent more time at
work.”

For some people the only answer to the question; “What is true wealth?”, is money pure and simple – the more money the better.

Others would be content to say that true wealth is having the peace of mind of being free of debt.

Another will say he is truly wealthy if he can lead the lifestyle he chooses regardless of cost.

Others might say true wealth is being healthy and surrounded by loving family and caring friends.

There are probably as many answers to this question as they are people to answer it.

You could live in a big house on the hill, have two Mercedes in the garage and a million in the bank and not enjoy life as much as the guy who works in the gas station and lives in a two room furnished apartment.

True wealth is what one perceives it to be. And if it were not so, we wouldn’t have policemen, firemen and soldiers who risk their lives protecting us rather than trying to work on Wall Street, making big bucks.

We wouldn’t have doctors who travel to third world countries, just to try to make some difference, rather than to stay at home with a thriving practice and a comfortable life.

We wouldn’t have all the volunteers this country has, who are ready and willing to help the sick, infirm or destitute – or who suddenly turn up at disaster scenes willing to do anything to help.

This country wouldn’t have the millions of people who donate billions of dollars annually to the charities of their choice.

So even thought we concentrate on financial matters, it’s good to step back and realize there is more to true wealth than money.

I believe that having enough wealth to live a comfortable life makes lots of other things possible.

I also believe that being in debt is merely transferring your wealth to your creditors. While it may make them, or their shareholders rich, it really contributes little to your true wealth.

 

Saving Money Tips

1. Make more money.
2. Lower your bills.

Making more money is easier said than done. Most people only get a salary increase that barely covers inflation and the increased cost of living. Add in the increased cost of healthcare, and many people actually have less money in their paycheck!

You can get a promotion and earn more, but that can take time. And in this day and age of massive layoffs, how secure do you feel at work?

You can find a new job that pays more, or get a second job. But take it from someone who has worked part-time jobs to get by…it’s exhausting, and you’ll have to say goodbye to a lot of your free time.

Lowering your bills is less likely to cause major strife in your life. Cutting your expenses and finding ways to save money is not as difficult as you might think. All it takes is a little thought, creativity, and perspective.

Sit down and take an honest look at where your money is going. You are likely to be surprised. Most people throw money down the drain everyday, often without even realizing it. Ask yourself these questions…

Did I really get the best price for the blouse I am wearing?

Could I have paid less for that new car in my driveway?

Am I going to be able to retire when I am ready or will I have to keep working until I die?

Hopefully, your answers were yes, no, and yes. If not, you probably lost out on an opportunity to save money.

Learning how to save money and achieve financial security is a skill that not everyone learns. After all, it is not something that is taught in schools. Here are some ideas to get you thinking about how you can improve your financial situation…

Set your priorities. Decide what is important to you. Do you want to retire early? Afford a bigger house? Go on a dream vacation? Set those goals, and keep them in mind whenever you’re about to spend. Before you drop $5 on a latte, consider whether or not it is worth putting off your dream.

Think about how you can lower your bills:

If you own your own home, can you refinance your mortgage at a lower interest rate? Even though interest rates are starting to creep back up, they are still at historic lows. You could save hundreds of dollars by refinancing.

How about your credit cards? If you are paying a high interest rate, you can transfer your balance to a card with a lower rate and save big money. Many cards now offer 0% introductory offers for a year or more! Transfer the balance and then pay off as much as possible before the 0% offer ends. Just be sure not to run up a big balance again.

Keep an eye on your credit report. So much depends on your credit score. How would you know if there is a problem or mistake on it? You should keep a close eye on it at all times. If you notice something is inaccurate, get it corrected immediately.

Solutions to Get Cash

# Borrow from a friend or family member

You may have loved ones who will help you out in a time of need, no matter what your situation is. In that case, this is probably the first solution to consider.

The advantage is that you don’t have to fill out applications, have your credit checked, or deal with a company that may charge you high fees. In fact, your friends or family may not charge you any interest for making you a loan (but it’s polite to offer them something, even if it’s just to do them a small favor).

One big disadvantage to borrowing money from someone you know is that they want to know why you need it, and you may have to explain your situation. That’s not always easy to do.

Another disadvantage is that word may get around, if they can’t keep your problems to themselves. Even friends and family like to gossip about their loved ones.

Also, you may have to listen to all their advice about how to save more money, how to get a better job, what to do with your life, and every other “helpful” bit of information they feel a need to tell you. But that’s just the price you pay for borrowing money from people you know.

Finally, the biggest disadvantage is what could happen if you can’t pay back the loan – or can’t pay it back quickly enough. That could ruin your friendship or family relationship, so consider this carefully before borrowing money from them.

# Pawn something or hold a yard sale

You may have some things you don’t need. In that case, why not sell them to make some money?

If you have something of value that you’d like to keep, and you think you’d have the money soon to buy it back, you can try pawning it. The danger there is that you won’t have enough money in time to get it back.

If you have things you want to get rid of, you can try holding a yard sale, sell your items through the newspaper, or even sell them online on eBay.

The disadvantage is that you don’t know if you’ll be able to sell your things, and it may take some time. Also, you may have expenses involved if you have to run an ad in the paper.

# Ask your creditors for more time to pay your bills

This isn’t exactly getting cash. It’s more like getting a temporary stay of execution. Still, it may help you get past a temporary cash crisis.

The advantage is that you don’t have to get a loan or sell your valuables. Instead, you just ask for more time to pay your bills. Some creditors may be willing to work with you and arrange a different payment plan.

The disadvantage is that your creditors may charge you for this service. And you still may have to pay late charges or higher interest rate. Or they may just laugh in your face for asking. But it’s worth a try.

# Get a cash advance on your credit card

The advantage of this is that you don’t have to talk to anyone, fill out an application, or get approved. You’re borrowing money from the credit card company, and they’ve already approved you for a credit line up to a certain amount.

Of course, this solution assumes you have a credit card, that you haven’t maxed it out, or that you’re willing to pay the high fees and extra charges. Typically, credit cards charge a “transaction fee” for a cash advance and they charge a higher interest on cash advances than they do on normal purchases. That’s one disadvantage.

Plus, a lot of us don’t have clean enough credit to get credit cards. Or we just don’t want to be sucked into the world of yearly “membership” fees, or worry about late charges if we miss the payment deadline by a few hours. And some credit cards charge huge interest rates. You can end up paying hundreds of dollars for the “privilege” of using your credit card.

# Get overdraft protection on your bank account

With this service, the bank covers any checks you write where you don’t have enough money in your account.

The advantage is that you avoid paying fees for bounced checks. It gives you a bit of a cushion.

The disadvantage is that you still end up paying fees. But instead of paying fees for bounced checks, you pay fees for the bank to cover your overdrafts. And that can cost you a bundle!

Some plans have fees as high as $35 per overdraft. What this means is that the bank is really making you a high-interest loan. That is, they charge you for the use of their money (by covering your check when you don’t have enough in your account). And they may only cover you for a few hundred dollars. After that, they start bouncing your checks.

It can be good to have overdraft protection for when you accidentally write a check when the money isn’t there. But don’t use it as a roundabout way to get a loan from the bank. You’ll end up paying too much for this.

# Get a loan

Once you’ve tried other ways to raise the money you need, you can try getting a loan from your bank or through companies that offer payday loans (also called check advance loans or cash advance loans).

Getting a loan from your bank can be the better choice because you’ll probably be able to borrow the money at a good interest rate, and you don’t have to pay it back right away.

However, this can be the most difficult loan to get. Banks prefer to make loans to businesses, or for specific projects such as a home improvement loan. They rarely give loans to people who just need some cash to tide them over until next payday.

That’s where payday loans come in.

A payday loan company will advance you some cash right away, and you don’t have to pay them back until your next payday. The disadvantage is that these loans are only for people who receive a regular paycheck or benefit check.

The advantages are:
– You can get the money quickly, deposited right into your checking account.
– If you apply online, you don’t have to talk to anyone or tell them why you need the money.
– If you can’t pay back the loan on the next payday, you can roll the loan over until the following payday.
– They usually don’t care about credit problems, only that you can pay the loan back.