Overcoming Cost of Living Challenges

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Saving money is hard. It’s a reality most Americans have to contend with. In a perfect world, we’d all love to have a nice nest egg in case we need it. The problem is, the cost of living is way too high! It’s so high, that more than half of us don’t even have $1,000 in savings.

When asked, 36% of Americans claim their biggest regret in 2017 was not saving money, and they blame the high cost of living as the number one reason why. 20% blame their low salary as the reason why they don’t save. 15% don’t even budget, essentially throwing their financials together with duct tape and sawdust.

Everything Changes Except Salaries

The biggest culprit behind people not being able to save is how much things change from year to year. With every turn of the calendar year, it would seem as if prices continue to rise. The cost of rent goes up. The cost of food goes up. Gas prices fluctuate, but most often, go up. Insurance rates go up. Interest rates go up. Taxes go up.

 

While all these aspects of everyday living continue to grow more expensive, our salaries stay the same. If you’re lucky, you might get a $.50 raise, but that doesn’t go far compared to the other bills that keep stacking on top of each other. It’s no wonder more Americans are finding themselves struggling with debt.

Despite the Struggle, Saving is Key

No matter what our circumstances might be, we cannot afford NOT to save money. It’s crucial, essential, and may even be lifesaving! How would you be able to afford a major crisis happening? Most of us go through life as if nothing bad can touch us, so we don’t even worry about it.

Maybe we can get through until our golden years relatively untouched, but what happens then? We lived at or above our means for so long, did you have time to plan and save for retirement? This is one part of life that just has a way of creeping up on us. Americans are now working longer than they ever used to before due to the lack of financial planning.

You Must Become Debt Free

As difficult as it might sound, the only salvation for rising costs is to get out of debt, especially if you don’t anticipate your salary rising. Americans get caught in the trap of turning to credit cards and getting loans when they want something they can’t afford. But that’s the thing! They try to pay for things they can’t afford and it costs them in the long run.

Just assuming you’ll get things on track before retirement isn’t going to cut it. You need real change and to get ahead of the snowball running downhill. It will only grow larger and larger until you can no longer manage it. Having an emergency nest egg, saving for retirement, and ensuring you can live comfortably below your means is MUCH more important than buying that brand-new car or doing anything that incurs new debt.

If you’re burdened with lots of debt, the best course of action might be to consider debt consolidation. That will allow you to put all your loans and debts into one neat package to make the repayment process simpler, saving you money verses not getting a consolidation.

You can also try to do a debt settlement, which may even lower the amount you owe and can save you thousands of dollars. Whichever you choose, getting out of debt (and not adding on more) is the best way to improve your financial situation.

The best rule of thumb is to not pay for anything you can’t afford. If you’re in a dead-end job and you don’t see your salary going up anytime soon, there’s no reason to make your circumstances more difficult than you need to.

Make new goals and be smart with your finances. Then, you can celebrate being one of the few Americans who are debt-free and without the worry of having nothing to fall back on in case the worst were to happen.

 

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5 Ways to Improve Your Home Heating Costs this Winter

Saving

As winter’s icy grip has taken hold of most of the country, you’ve probably already been smacked with your first heating bill of the year. The average American spends up to as much as 22% of their monthly budget on utilities, sometimes more if the weather doesn’t cooperate. And if you live in the north, forget about it!

Rather than just riding it out until spring, there are several ways you can lessen the impact of winter heating costs and save a bit of money. Here are 5 of them:

1) Keep a close eye on your thermostat.

Imagine your heater playing tug-of-war with the cold air outside. No matter how hard you try to winterize, the cold makes its way in and forces the heat to rise. When you set your thermostat to a certain temperature, it’s your heating unit’s job to keep the house at that number. The higher the temp, the more times it will have to kick on throughout the day to keep up.

This is especially true when the weather gets brutally cold. You might not think a few degrees will matter much, but it can add up quickly. You can save 1% on your heating costs by dropping the temperature 1 degree per every 8 hours. Which means you should consider times to lower your thermostat.

The best temperature to set for ultimate comfort and reasonable savings is 68 degrees. Every degree lower than that will keep your heater from kicking on as often, and ultimately saving on energy. Take extra steps to stay warm and save money, such as putting on a comfortable sweater, wearing socks, and turning it down 5-10 degrees at night and/or when you leave for the day.

2) Let the sun do all the work.

Even on the coldest of days, sunlight can help warm your home for you. When it’s bright and sunny out, feel free to lower the thermostat and open the blinds. Not only will the extra sunlight help you overcome those winter blues, but it can also raise the temperature of the home several degrees.

Also, as solar panels become more popular, a lot of people are installing very simple panels that help to generate extra heating power. This is especially true if they own remote properties that aren’t frequented during the winter, like cabins. Even during long stretches of dreary weather these solar panels help keep the temperature well above freezing.

3) Keep your heating system clean.

Think about what it’s like when you’re congesting. Breathing is difficult and requires more energy. The same happens when your heating system if you don’t clean out the filters regularly. Energy Star recommends that you clean the system on a monthly basis. There are several reasons for this.

-You can extend the life of your heating system by keeping it clean. If it has to work harder for a significant amount of time, it can damage or even destroy the unit much quicker.

-You help keep your air cleaner. Homes can get stuffy in the winter months. Everyone is stuck inside with the doors and windows sealed shut. There’s much less airflow to deal with the accumulating dust and debris. Cleaning the system ensures cleaner air.

-The Department of Energy says keeping your vents clean can save you between 5% to 15% on your heating costs.

4) Turn on the ceiling fan, but in reverse.

Helping to control the temperature environment in your home is easier when you understand the fundamentals of how air reacts. Cold air is denser, so it sinks. Warm air is lighter, so it rises. Most ceiling fans have a reverse function that helps to push warm air back down. So, when people are occupying a space that has a fan, run it on reverse, but be sure to shut it down after.

5) Plastic sheeting is a lifesaver.

If you have brand new, top of the line windows, you probably won’t have much of an issue keeping your house warm. For the rest of us, older windows are used to take the brunt mother nature has thrown at it. It’s not uncommon for windows (or areas near the windows) to have small gaps where the warm air escapes.

As the air escapes, it means your heater will have to kick on more times to keep up with the flow of air moving away from the house. A lot of people put a lot of effort into ‘winterizing’ their homes for the winter. They put up plastic sheeting over the windows to help insulate and keep the warm air inside where it belongs.

 

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How to Make Sure You’re Financially Prepared for Marriage

Credit & Debt Settlement , Personal Loans , Saving

Congratulations! You’re engaged and about to go on what should be the greatest adventure of your life!

Of course, in your mind, you’re working through all the ways the two of you can successfully navigate any stormy waters that might brew. You make plans and prepare, discussing everything to ensure the marriage starts off on the right foot.

But one area where couples struggle is when it comes to finances. Maybe you’ll have the preliminary talks (What do you do? How much do you make?), but a survey from the National Foundation for Credit Counseling has revealed that 70% of people had ‘negative feelings’ about discussing money with their fiancé.

20% of those surveyed believed that a real, in-depth conversation would either end in a fight or the end of the engagement altogether. The consequences of this are devastating!

Lack of Communication Reveals Nasty Surprises

We’re all different in the way we approach money. These differences can lead to difficulty after the wedding. Our views often come from our parents and the way money has been spent around the house as a kid. If your parents helped you get a savings account at an early age, you’ll be more likely to save.

On the other hand, if you received a lot of gifts and weren’t taught to save, saving might not be in your vocabulary. This often leads to a rift between couples who were raised differently. They join in matrimony only to find out their spouse is a huge spender and has been hiding a massive pile of debt under their mattress.

Now that debt belongs to you. Isn’t marriage fun?

This is why money problems are the number one cause for divorce in the United States. Couples who don’t communicate later regret it and are often ambushed by a partner who doesn’t share their same views. And when incomes are combined and bank accounts are shared, those can be dangerous waters to tread.

Improving Your Odds

If you’re intent on having a successful marriage and NOT becoming another statistic, then you’re going to have to get over the fear of having the talk you need to have with your future spouse. It’s 100% CRUCIAL for a good marriage to get the financial stuff situation beforehand.

Here are some ideas to help ensure you’re financially prepared for marriage:

1) Don’t start off your marriage in debt.

Weddings are expensive. They are often one of the most expensive milestones in our lives, next to getting the house and the car. As much as we dream about having this extravagant wedding, full of beauty and wonder, it can set your marriage back in the long run. It doesn’t exactly set a good tone going forward starting out your lives together in debt.

The average wedding in the U.S. costs $25,000, and that’s without the honeymoon or any of the other expenses that come with marriage. How many years will it take you to pay off that one single day? Plan a budget and stick to it! Sticking to the budget is the difficult part, as the cost of a wedding can add up fast.

2) Have the difficult talk.

Be aware of your partner’s financial situation. Are they a spender? Are you a saver? It’s okay to have different ideologies towards money, but it requires a lot of open communication to make it right. Sit down with your partner and make sure you have a serious, but non-judgmental review of their spending habits. Go over their debts and a talk about ways to make it work.

If you’re a saver, try to be understanding that people make a lot of mistakes when they’re younger. Most people often don’t know how to save, especially when they’re single and don’t need to. Now that things are getting real and responsibilities are piling up, it’s time to get serious and work out a budget together.

3) Build up your savings.

Married couples often live to their max on both incomes. If you buy a house, you’re most likely going to do it together with the mortgage based on what you both make together. That’s perfectly fine, but what if one of you loses your job? This is where being financially prepared can save your marriage from a ton of heartache and frustration.

The vast number of divorces over money happen when times are difficult. The economy slows down, jobs are hard to come by, and the family loses out. That’s why it’s more important, especially in the beginning, to forgo some comforts to put that money into a savings account. Build up at least six months’ worth of emergency savings in case the worst happens.

4) Plan, but take your time getting there.

There’s no doubt you spent a lot of time daydreaming about white picket fences and a yard full of kids from the moment you feel in love. To go along with building up your savings, hold off on making the big purchases for a while. It’s not going to hurt to rent a decent apartment for a few years while you build up your savings.

Do you really need the top of the line car or the best cable package? Whatever the case may be, sit down and plan out your future. Cut spending while you can, save as much as possible, and keep your plans close to your heart. Write down a timeline with your goals in place. Maybe buy a house in 5 years rather than right at the beginning.

Are you prepared for children? I wouldn’t be surprised if many kids born are happy little accidents. You can plan for them all you want, but they have a knack of showing up when you least expect them to. Either way, these are all things you should sit down together and talk about. Write up a budget, determine what will go into savings, and grow together.

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Taking Finances (and your life!) to the Next Level

Credit & Debt Settlement , Refinance , Saving

The American dream. Financial freedom. Being able to do whatever we want, whenever we want. That’s the life so many people chase after, but often don’t know how to achieve.

We often get into the grind, thinking we’re making the right choices. The sad truth is, we’re running around and around in a giant hamster wheel, working our tails off to keep it moving, but going nowhere at all.

If you can have enough money in your bank account that you never have to worry about living month-to-month or paycheck-to-paycheck, that IS freedom.

So, how do you take your life to the next level?

Step #1: Look at your earnings and make bold calls if you need a change.

The difference between where you are now in life verses when you first got out of college or graduated high school is you’re a bit more experienced in life.  Whatever you’re currently doing, you’ve most likely been working on it for nearly a decade.

You’ve learned, studied, grown, made mistakes, gave up, went after again, and so on.  If you take all of this into account, what stage would you say you’re at?

And most importantly, where do you see yourself in another 10 years?  On your way to becoming a millionaire?  Then great!  Don’t change a single thing.  Keep plugging away doing exactly what you’re doing.  

But be perfectly honest with yourself.  Do you need to make a change?  Maybe you’re in over your head?  You might need to make a slight or a drastic change to stay ahead.  As they say, “Insanity is doing the same thing and expecting different results”.

Step #2: Make sure you focus on your top client.

Here’s the thing, you need to remember one person.  And that person is yourself.  We often forget about our own well-being and seek to please others first.  If you work at an office while attempting to start your own business, will working those extra hours really net you anything?  

 

This might sound selfish, but you have to ask what’s in it for you.  What will you get out of it?

As long as you’re working for your boss, you’re helping them fulfill their own dreams and reality.  They get to go on longer breaks and vacations while you plug away extra hours to make them more money.  

 

And it’s a waste of your time!  Instead, make sure you’re getting something out of it.  If you’re not, consider it time wasted away from what you should be doing: setting up your business!

Step #3: Other Money

This might seem counterintuitive, but If you need some money, borrow it.  Don’t be afraid of borrowing money and using that to get things going.  It’s used most commonly perhaps in real estate, where someone takes out a mortgage, buys and fixes up a house, and then uses rent payments he collects on the interest.

As with anytime you borrow, it does come with risks.  There can be a downturn in the economy, but I’m willing to bet that most successful businesses started out with an idea, drive, and a loan.  

 

They often say that you need money to make money, so you can try borrowing if it’s worth the risk. It may be the only way you get to take that step.

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5 Ways to Save $531 Every Month

Saving


Your budget is bulging at the seams. You know there’s got to be a better way to budget, leave some room for an indulgence or two and save money. There is a way. Take the reins of your financial situation, treat yourself and potentially pocket $500 a month in savings.

1. Consolidate Unsecured Debt into One Lower Monthly Payment

Credit cards are an example of unsecured debt, and quite often, the most frequently cited reason for overwhelming monthly debt expense. If your monthly credit card payments are straining your budget to the bursting point, explore consolidation. The average household carries two to five cards and spends approximately $650 per month making payments. Consolidate those cards and reduce your monthly expense by $225-$325.

credit_card_debt

2. Refinance Auto Loans

A monthly car payment follows as a close second to your monthly rent or mortgage payment. It can be one of your biggest budget busters! Financing options for automobiles range between 48 to 72 months. Examine your current loan. It might be possible to refinance from a 48-month term to a longer period of 72 months and reduce the payment up to 50 percent! You could potentially save yourself several hundred dollars each month.

3. Re-Evaluate Auto (and Other) Insurance Needs

Life today is filled with all sorts of insurance requirements and needs. Medical, auto, life, home – and insurance is one of the most neglected areas of our lives when it comes to assessing for savings. As a general rule, we should evaluate our insurance needs on a yearly basis because of life changes that occur over time, e.g. marriage, divorce, etc.. That yearly review could net you 25-percent savings on insurance expense. So, if you’re currently spending $2,000 a year on all your insurance coverages, it could mean an extra $500 in your pocket each and every month.

4. Opt-In for Student Loan Consolidation

Student loans are big business. The average college graduate is carrying $30,000 in debt. Quite often, the debt is spread over three to five loans, with payments totaling more than 35 percent of the borrower’s monthly income. If you are one of the more than 1.3 million graduates struggling with monthly student loan payments, you should consider loan consolidation. There are federal as well as private options that allow you to consolidate into a single loan option with one monthly payment. Federal programs will also allow you to choose an option based on your monthly income; if you’re just starting your career and your monthly income is at a lifetime low, this option could reduce your payment to a much lower level. With three to five loans, you could be paying as much as $400 each month; consolidated, the monthly payment would be closer to $250 per month. You could realize a monthly savings of over $150!

Did you know that there are actually companies out there that specialize in consolidating your loans insanely quickly and efficiently?  Used by millions…Click here to find out more.

student_loan

5. Explore a Credit Repair Option

Quite often, bulging (or completely busted) budgets lead us down the dangerous path of poor credit. Missed payments, late payments and loans that are in default contribute to declining credit scores. As a result, obtaining new credit becomes more difficult, and if approved, it comes with a higher interest rate. Proactively working to repair your credit file really does save you money, it’s just that it doesn’t happen overnight. However, if you realized any savings from the options presented above, you can, with persistence, improve your credit score. Begin to make payments that are more than the minimum, make payments early and strive to reduce the amount of debt that you carry. All of these steps work to improve your credit score, and an improved credit score opens doors to better credit options.
So what are you waiting on? Get up off the couch, explore all the options in this article and watch the expenses shrink, the budget improve and your savings grow! All while you sip that special latte!

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10 Easy Ways to Keep More Money in Your Pocket

Saving


When you’re already living paycheck to paycheck, it can seem impossible to save money. The usual sites offering financial advice aren’t too useful either with their suggestions for better stock investments and squirreling away hundreds of bucks a month. Well, we’re here to help with a few of our favorite tips you can actually use. They won’t make you rich, but they’ll help you stretch your dollar a little bit further and give you some breathing room.

1. Student Loan Consolidation

If you have multiple student loans from different years, reach out to your lender or one that specializes in refinancing and consolidate them into one. You’ll usually get a lower interest rate that will allow you to pay down debt faster.

2. Credit Card Debt Consolidation

Look around for a new credit card with a balance transfer promotion of 0 percent or very low interest for a set amount of time. Transfer all or part of a balance from your highest APR card and pay it off. Just be sure to transfer only what you know you can pay off before the promotional period ends.

3. Get a Card with a Lower APR

Get a credit card with the lowest APR possible. Whatever you do, don’t get behind on it; that can trigger late fees and a penalty APR that could even affect your card rates with other lenders.

4. Repair Your Credit

The better shape your credit report is in, the better credit card terms you can expect. This means lower rates, higher credit limits and sometimes extra perks like cash back. If your credit could use some help, look into a credit repair program to help get your credit back on track.

5. Reduce Health Insurance Costs

Generally speaking, the healthier you are, the less expensive you are to insure. Doing things like stopping smoking and drinking and losing weight make you a better bet for insurance companies. Make sure your progress is noted in your annual physical and then contact your insurer for a review.

6. Reduce Car Insurance Costs

The safer you drive, the better your insurance rates will be. If it’s been a while since your last accident or traffic violation, contact your insurance provider to negotiate a better rate.

7. Refinance Your Car Loan

If you’re still making payments on a car you bought when your credit was worse, contact your lender to ask about refinancing your loan at a lower APR. If they won’t play ball, threaten to refinance through another bank. If that doesn’t work, take your business elsewhere.

8. Buy a New Car

Let’s say you’re not actually making car payments. Instead, you own a beater you’re dragging into the shop every week. It sounds counterintuitive, but you might look into buying a brand-new car. Not only will you have a much more reliable ride, but new cars will stay under warranty for a number of years, meaning less money you have to shell out for repairs and routine maintenance.

9. Get a Prepaid Phone

Traditional cell phone contracts often include all sorts of unnecessary extras you never use, so why are you paying for them? Prepaid service is just as reliable and often much cheaper than a contract. You do have to pay for the phone upfront instead of getting it free with a new contract, but you’ll save money in the long run by only paying for the services you actually need and use.

10. Cut the Cable

You’re paying a premium for all those cable channels that never show anything you want to see. Well, it’s time to break up with your cable company. You can keep it for internet service, but cut out the TV subscription. Sign up for online streaming platforms like Netflix, Hulu, Amazon Prime and others to watch what you want at a fraction of the cost of a monthly TV cable bill.

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