D' Finance Bench

The Right Place To Sit At For Financial Advises

Starting Young: Teaching Teens to Save Money

In the past few years, teenagers have earned billions of dollars with part-time and summer jobs.

Some have spent most of what they earned, while others saved most or even all of it for a big purchase, or for their college education.

Kids these days are becoming more and more aware of their family’s source of income and financial status. They apply these money-spending principles when they venture out on their own.

Thus, it becomes more of a parent’s responsibility to start “training” their teenage kids to use their money wisely.

Here are some ways on how you, as a parent, can teach your teens to save those hard-earned bucks: Continue reading

September 23, 2012 Posted by | Budgeting, Savings | , , , , , , , , , | 8 Comments

Credit Card Company That You Can Trust: Chase

If you are looking for a credit card company to give your business to, but are unsure of which one to choose, then you may want to consider Chase. They are known for being one of the best credit cards around. They make applying for one of their cards very simple and there are no hidden charges.

When you sign up, they will give you all of the information about any charges that they may charge you. They do not have annual fees and offer a 0% interest introductory rate. Also, Chase offers fraud protection, which is a very important thing to have these days. Continue reading

September 23, 2012 Posted by | Credit Card | , , , , , , , , | 2 Comments

EFFECTIVE MONEY SAVINGS TIPS

Porquet guardiolaSaving is your best defense against bankruptcy. It insulates you from possible financial loss and gives you the ability to expand your finances and create a money-generating business machine that will help you earn extra.  Your potential to flexing your base income is augmented in ways that is not confined within the walls of basic employment. You can start up your own business, use it for loan purposes and earn interest on them while being used, among others. But the basics of it all lies in saving – spending less than what you earn and keep something enough for future use and for unforeseen circumstances. This article provides you with ways on how you can effectively maximize your financial resources and helps you manage your money by developing correct habits and outlook suitable for your goal.  Continue reading

September 23, 2012 Posted by | Budgeting, Money Management, Savings | , , , , , , | 3 Comments

Learning About Cash Back Credit Cards: Good or Bad Idea?

Getting a credit card that offers cash back always sounds like a good idea.  What could be better than getting cash back on all the purchases that you make with your credit card?  It sounds too good to be true, doesn’t it?   

Well, there are cards that give you free cash, but it is usually only around 1% cash back.  However, free money is free money, right?  Well, sometimes.   Continue reading

September 23, 2012 Posted by | Credit Card | , , , , , , , , | 1 Comment

A Frugal Lifestyle

The word “frugality” has left a more negative connotation for most people than simply being a saver, a cheapskate or tightwad. There is a thin line difference to saving and too much frugality to the point of being awkward and ridiculous. This is where the negative connotation comes from.

But if you are guided with the right principles and reasons in deciding to live a frugal life, you would never go wrong.

If you have decided to live frugally, no need to be worried of insults. Keep your head up high. And keep your focus through these tips. Continue reading

September 23, 2012 Posted by | Money Management | , , , , , , , , | Leave a comment

We are Family: Budget Tips for Today’s Familial Ties

If you are in charge of creating the family budget, chances are, you’ve had the unfortunate experience of having a brilliant budget plan that isn’t executed well. This happens to many families and couples, and with a little attitude tweaking, you can solicit the help of your family in making your budget work.

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September 23, 2012 Posted by | Budgeting | , , , , , , , , , | 2 Comments

Budgeting For Emergency Funds?

Emergency funds are considered to be a necessity as far as financial security is concerned, since it can provide one with financial resources that one can resort to and depend on when an emergency arises such that when one is sick and have the burden of paying huge medical bills, or unexpected home or major car repair.

When one has no emergency fund, one can be obliged to acquire debt on your credit card that might take several years to repay with interest that would later cost so much more.

However by putting an extra thirty to fifty dollars every month in an individual “emergency savings account” one can be secured with what emergency the future may bring. In doing this, it is recommended that one regards the emergency fund as an additional bill, to be punctually paid each month.

Yes, one can and should budget and allocate the extra money for emergency fund, as this is very significant when one refers to his “financial future”. Here, the goal is to create savings from budgeting your income; the emergency savings should ideally be equal to at least three months your living expenditures.

What’s important is that you should steadily put a certain amount of money aside, and only use it for real emergencies.

Not like an investment, the success of one’s long-term savings funds does not really count on the amount of return or interests but on placing a fixed amount of money away constantly and steadily so to have immediate access to it at all times.

In spite of one’s financial status, the initial step in the process of constructing an emergency fund is by knowing where your money is presently being consumed or spent.

When one recognizes and determines where one’s earnings are spent, then it will be easy for one to choose and make a decision where to trim down expenses. In other words, budget.

Budgeting is putting or setting aside money for anticipated and unanticipated future use. It is here that one sets up a goal so as to save. So set an emergency fund as your goal.

Checking, savings, money market accounts and “certificates of deposits”, are great places to keep one’s cash that might be needed on quick notice.

The amount saved from budgeting can either go to your savings goal, emergency fund or both. One could utilize the money saved from budgeting financial expenses by saving half of it to your savings account and half of it for emergencies. This way, you achieve your goals in savings and at the same time put in funds for emergency use. It’s your choice.

 

September 23, 2012 Posted by | Budgeting, Money Management, Savings | , , , , , , , , | 5 Comments

Is Buying Better Credit Ethical?

If you have a low credit score, it can have many different repercussions.

A low credit score can affect whether or not you get a mortgage or any other kind of loan. A low credit score can also lead to having a higher interest rate on credit cards. Having a low credit score can also mean being denied for an apartment rental, house rental, or many other necessities.

There are some people with low credit scores that believe they have found a loophole in the system.
If you are an authorized user on a person’s credit account, that person’s account history will actually appear on your credit report. If the other person’s credit account has a positive payment history, you can actually see an increase in your own credit score simply by being included on their accounts.

Even if your credit score is low, if you add several of these other accounts to your credit history, this can actually increase your credit score enough to get approval for a loan or even obtain a better interest rate.

There are actually some companies that offer a service where you pay a fee to borrow someone else’s credit information and apply it to your account.

The way it works is that you pay a company a fee. (This fee can range anywhere from a few hundred up to several thousand dollars depending on how many accounts you want to add to yours.) You give your name and Social Security number to the company and the company will find people that have good credit accounts and will add you as an authorized user to those accounts.

Once the card company has reported this to the different credit bureaus, you’re taken off the accounts.

Believe it or not this is actually legal. The problem is that it’s dishonest. The reason that credit scores exist is to help provide some kind of a safety net for lenders. Being able to deny credit to those who have low credit score helps them to protect their assets.

While the practice of buying better credit might be legal, it certainly is not an honest way to obtain credit; and all consumers pay for this dishonest practice in the long run.

September 23, 2012 Posted by | Credit Repair | , , , , , , | Leave a comment

Easy Household Budgeting Strategies

Most people live paycheck to paycheck, and spend what they want whenever they want. But if you keep up that pattern long enough, you’ll soon discover that the money runs out before you’ve paid all the bills, and there is never any left over for special purchases or holidays. To get control of your household spending and start saving you will need to set up a household budget.

The thought of having to stick to a budget might make you cringe. It sounds restrictive and boring. But if you are serious about creating wealth, a budget can actually give you freedom. You will have control over your finances, know where your money is going, and have a plan to reach your financial goals. Not spending on a few things that you can do without right now means you will be able to spend on larger, more important purchases in the future.

 

Here are some easy household budgeting strategies you can use to get started.

  • Find out how much you earn

The way you’re paid can determine how you budget your money each month. If you’re paid on a weekly basis, you can calculate your budget based on four paychecks a month. That means you’ll have four extra checks throughout the year to help with extra expenses. If you’re paid bi-weekly, you can calculate your budget based on two paychecks a month, and have two extra checks throughout the year. If you’re paid monthly, calculate your budget based on the monthly amount. You won’t have extra checks throughout the year, so you’ll need to be careful in budgeting for the extras. For those who aren’t paid regularly, figure out your annual income and divide it by 12 to determine your monthly income.

  • Track your expenses.

Your fixed expenses will be easy to figure out. These are the items that stay the same from month to month, such as your mortgage, car payment, and the like. Your other expenses can be trickier to calculate. To find out how much you really spend in a month, carry a notebook with you and write down everything you spend for the next 30 days. This will tell you how much money you’re spending, and where it is all going.

  • Figure out the difference.

Now, find out the difference between what you spend and what you earn each month. If you have a surplus, a portion of that should be budgeted for investments or savings. If you have a shortage, you have one of two choices to solve your budget woes: lower your expenses or increase your income. You may even want to do both.

  • Lower your expenses.

Lowering your expenses is the most obvious way to solve a discrepancy between your income and your spending. Simple changes made over time, such as renting a video instead of going to the movie theatre, can add up to big dollars in your bank account. Others may be lifestyle changes, such as giving up one car and taking public transportation instead.

Taking control of your finances by setting up a household budget is an important first step to creating wealth. As you begin to make wise decisions about where your money goes, over time you will find opportunities to spend less and have more money to invest.

September 23, 2012 Posted by | Budgeting | , , , , , , , , , | 3 Comments

Develop a Positive Money Mindset

 How you think about money is the single most important factor that determines whether you are wealthy or not. So, if you want more money in your life it is essential that you develop a positive money mindset.

However, many of us are taught to think negatively about money. We’re told things like “money is the root of all evil,” and “money doesn’t grow on trees.” No wonder we have such a difficult time thinking positively about money! You may have even been taught that rich people are greedy and as a result are subconsciously avoiding wealth and missing out on the great opportunities having money can provide.

As long as you hold on to negative and incorrect beliefs about money, you will never create the wealth you desire or deserve.

 

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September 23, 2012 Posted by | Wealth | , , , , , , , , | 3 Comments