Category Archives: Finance

How to Build Your Childs Credit

What can you do if you want to give your child a head start by helping them to build good credit from the beginning? Can you open up accounts in your child’s name, build that credit, and still protect your child from potential identity theft?

Where to Begin

A gift of excellent credit is one of the best things that you can give to your child. There are a few ways to help your child create a great credit report including the following:

Allow your child to become an authorized buyer on your credit card. Even though you will be responsible for paying for all purchases, you will help to build your child’s credit when paying off all balances in full. This is one of the easiest ways to show your child how to handle credit responsibly as well.
If your child is old enough, you can cosign on a credit card for him or her. All people under the age of 21 must have a cosigner according to the law, so this is the perfect opportunity to help your child build credit while also displaying responsibility credit-wise.
If your child is not old enough for a credit card of their own, you can also open up a store credit card under your child’s name – again, you will have to pay the bill (or work out an arrangement with your child), but these cards provide a good way to build credit quickly.
Protecting a Small Child

Identity thieves don’t discriminate when it comes to the demographics of their many victims – they will go after the credit of an adult, or a child at any age. Even if your child is too young to open up a credit card account, there are still some things that you can do to protect your child’s credit.

1. Always check your child’s credit report – twice or three times per year. If you see anything strange, make sure to report it right away.

2. Open a credit account with a major credit reporting company like Equifax for your child. Then, freeze the account until your child is ready to build her own credit.

3. Make sure that you report anything suspicious right away. It can take time and there might be a process to it, but acting quickly when you see that something is not right about a credit report is important.

Basics of Emergency Financial Plans

Personal finance tips can help you plan and budget to where you would wisely spend your monthly income. These tips are also good to consider for you to spare some of your money for emergency expenses.

Imagine this: your wife has on-the-spot visitors on a lazy Sunday afternoon. Eventually, you would need to offer some snacks for them to eat. Dinner is fast approaching but you have insufficient money to buy enough food for both your family and your visitors. Now, how can you handle this situation if you have no money for emergencies on your wallet?

Preparing for a financial emergency is one thing that most people do not mind to consider. This task maybe difficult especially to those who get just the exact amount of money from their monthly incomes. A situation which happens urgently before your eyes with you being caught unprepared will put you into trouble.

These personal finance tips would make you devise an emergency financial plan. Here are some items to ponder upon for you to handle emergency financial situations that would arise sooner or later in your life.

1. Have a list of all your assets for you to liquidate
2. A list of luxuries you can’t live without to plan a separate budget for these items.
3. A list of available resources in case these emergencies occur.
4. Simple jobs you can generate from the raw materials at home to add to your income.

To sum it all up, you need to make a plan of expenses. It is like your armor when a financial storm will strike your home. What good is a good income if you are caught unprepared during emergency situations like death of a family member, divorce, sudden sickness, bankruptcy, floods and many more. These personal finance tips are essential for you to follow so that you can spare yourself some time to devise a plan before the worst financial storm arises within your family.

Save yourself from the nightmare of not being able to handle effectively the emergency situations. These personal finance tips equip you with the knowledge you need to use as a weapon against devastating financial emergencies.

5 Personal Finance Tips For Parents

As we grow older our responsibilities also increase and once you become parents you have to deal with them pretty seriously. Taking care of children, providing them with the right education and other facilities can lead to some heavy financial burden for parents. In this case what can you do? What is most important is to prioritize your responsibilities as parents and determine the financial support you need to accomplish it. This article will cover a few tips that can help you manage your personal finances diligently.

1. First of all understand that now you have some serious duties to perform, hence you cannot act as if you are a 20 year old and make liberal financial decisions. You need to create a balance between your instantaneous and long term needs so that you can invest wisely. Manage your income properly and keep a check on spending and investments.

2. Plan for your child’s education early and keep funds aside for it. You will need to create a budget and estimate the finances that you will require for his schooling and higher education. Invest accordingly in schemes and investment plans that will have high returns when you require them most for your child’s education.

3. It is very common that people when they grow old tend to invest in property and buy a house. It is certainly one of your basic needs and you may take some loan for the same. Adhere strictly to your budget and repay loans in time so that you can avoid getting a bad credit rating or bankruptcy. Remember by simply paying the minimum due you are not doing any good. Try and negotiate with the creditors for simpler installments.

4. Supervise your credit card payments and pay your credit bills in time to avoid heavy interest.

5. Remember that with children you also need some handy cash for few unplanned expenses like medical bills etc which may crop up anytime.

5 Strange But Creative Personal Finance Tips

I guess most of you are aware about the shrinking global economy unless you have been hiding in Himalayas since last two years or more. Money making, in today’s scenario, is not easy at all. You have to cut down on your groceries, work 15 hours instead of 8, stop partying, and yet you do not save a negligible amount to pay off your credit card bill.

You say “I am trying everything to perk up my financial stability.” I am sure you aren’t. Below are some strange but smart personal finance tips to earn quickly.

1. Medical Research

No, I am not asking you to do a medical research. That will be done by doctors and physicians. You just need to lend your body for research. It isn’t as bloodcurdling as it sounds because all trials and test are conducted under expert supervision and they have to adhere to austere laws. I do not know about rest of the countries, but in US they make sure your body is safe while conducting the tests. Normal trials include drugs dosage testing which has already been scrupulously tested, but not on humans.

It is not necessary to be in good shape to get involved because drugs are not for healthy people. Although some research seek a healthy body, most of them are looking for smokers, or obese, or asthma patients. Those interested, be prepared for diminutive side effects.

2. Trade in blood

Donating your blood is a virtue. But it is an opportunity in recession times. In US, you can earn up to $40 per donation. It is completely safe to give a bottle of blood from your body at any given time. Humans recover the lost blood within a day. That means you can earn $40 per day. However, it’s not advisable to donate on a daily basis.

These strange personal finance tips are quite useful and inexpensive, are not they? Read on.

3. Trade in Hair

People try to earn money by using what’s under their scalp ignoring an indispensable source of income thriving on it. For those still wondering, I am talking about your hair. Instead of dumping it after cutting, sell it and earn up to $ 1,000. However, you can just collect crumbs and sell it off. You hair needs to be at least 25 cm long; say it’s one of the eligibility criteria. It also needs to be uncolored, clean, and healthy. These bunches of hair are used to make wigs which will be used by celebrities. Lucky hair! You can find purchasers online.

4. Trade in sperms

Make money from your manhood is one of the few well paying personal finance tips that your financial consultant wouldn’t inform you. Probably because he might not know it. Selling your sperms once in a week or two is a great opportunity to earn money that women can never enjoy. However, it might be quite bothersome for those men who might think that their numerous off-springs will find them out in 16 years time.

5. Disease in fad:

Any disease can be an earning opportunity for those who think creatively. For instance, many people earned money from the period affected by swine flu. They designed comical swine flu awareness t-shirts which were informative yet stylish. Others introduced branded flu masks for rich and modish people.

These are some of the few personal finance tips that you can use to earn a good part time income. Just remember to be creative and resourceful.

Tips to Managing Your Debt Effectively

ManageDebtEffectiveey-300x300Thousands of people around the world are so deep in debt that they experience constant stress, restless nights and their performance at work starts to suffer. Many will become physically ill because they realise that they have borrowed too much and their salary doesn’t cover the bill by the end of the month.

All it takes is one family member to lose their job and their world can drop out from beneath them. The dread when the phone rings to find a creditor on the other side of the phone or avoiding answering the door, in case one of the creditors are standing there wanting to collect. In addition to this, it severely affects your credit score.

Not everyone’s debt is their fault. Many institutions love throwing great deals your way from credit cards to loans to shopping accounts and more. It’s so easy to build up debt these days, but you have to also ensure that you don’t borrow more than you can repay.

There are a number of ways to ensure you don’t get into serious financial trouble, enabling you to put food on the family table each night. When you find that your debt is taking over your life and you have absolutely no way to repay it, it may be time to consider asking for bankruptcy advice.

The first is to consider selling some of your assets to repay your debts. This is not a pleasant solution by may be your only solution moving forward. If you were to file for bankruptcy, this is what would happen and if you have any secured debts, chances are they are going to come after your home or car in the near future if you continue to not pay the amount due. Consider selling excess assets, if you have a laptop, phone, tablet and desktop computer, consider selling one or more of the items, you don’t need them all, this can free up some cash to pay towards one of your monthly bills.

Another solution is that if you have two cars, but only really need one, consider selling the more expensive to run vehicle and use that cash to pay off some of your debts. Don’t fall into the trap of paying off accounts and credit cards using credit cards for payment. This can turn into a nasty cycle, which can leave you deeper in debt moving forward.

Speak to your creditors where you are having trouble meeting your payments and see if you can work out a payment arrangement. Remember your creditors want to ensure that they get their money, so they may be willing to come to a compromise, accommodating what you can afford, as long as they get their money back in the long run.

Try and pay all your bills on time. While this may sound an obvious solution to avoid bankruptcy in the future, it may not be the easiest. Paying your bills on time reduces the risk of late penalty charges and additional interest, this all increases over the months, leaving you with even more money you owe when you’re ready to make your next payment.

You can ask your family for money to help you get back on track, but remember that is leaving you in the same situation where you now owe them the money. If you cannot afford to repay, this can put strain on the family.

The final choice is to get some bankruptcy advice. Specialists are able to advice you moving forward, helping you decide if bankruptcy is the right solution to help you get your life back on track and eliminate the stress you experience on a daily basis.

5 Common Misconceptions About Bankruptcy

Misconception #1: YOU LOSE ALL YOUR BELONGINGS IN BANKRUPTCY.

Truth:

Many of the bankruptcy cases that are filed by individuals are known as “no asset” cases. This means that the debtor or debtors preserve all of their belongings. The reason for this is bankruptcy gives you the privilege to keep a certain amount of property in which you can start over with. The belongings that you are able to keep are known as exempt property. Depending on the state you live in will determine what you can keep.

Misconception #2: BANKRUPTCY RUINS YOUR CREDIT FOR 7 TO 10 YEARS.

Truth:

This misconception is unbelievable. There are many cases in which filing for bankruptcy will improve your credit. This is accurate for many debtors, because upon receiving their discharge, they are debt free. Often, their debt to income quota is zero. Once your bankruptcy is over, you can then begin the development of rebuilding your credit. If you are a proactive person, it is important to obtain new credit and to pay all of your necessities on time. If you are doing this for a constant two to three years you can reestablish good credit.

Misconception #3: YOU CANNOT DISCHARGE TAXES IN BANKRUPTCY.

Truth:

Conflicting with the common misconception, typically income taxes can be freed in bankruptcy if you have the following information:

1. The taxes have to be a minimum of three years old

2. The associated return must of been filed a minimum of two years ago

3. Any added appraisal was more than 240 days ago.

4. There was no engaging in fraud or tax evasion from the taxpayer

There are many reasons in which these time periods have the possibility to be extended, do not count on these things alone to determine the discharge-ability of taxes depending on your situation.

Misconception #4: MEDICAL BILLS CANNOT BE DISCHARGED IN BANKRUPTCY.

Truth:

Just like most bills, medical bills can also be discharged in bankruptcy. There are many suspicions in which individuals think otherwise. Wherever this misconception is coming from is false. In fact, one of the main three reasons that an individual will file for bankruptcy is medical bills, alone with job loss and divorce.

Misconception #5: YOU CAN PICK AND CHOOSE WHICH DEBTS TO LIST IN YOUR BANKRUPTCY.

Truth:

False. It is mandatory for all debts to be filed, including debts owed to family and personal friends, business partners, and future debts that you may have. It is not possible for you to eliminate one credit card from the bankruptcy.

How Can You Obtain a Good Credit Score After Bankruptcy

A bankruptcy is not good at all. It stays on your credit card report for 7 to 10 years. There is a possibility that your credit card score will remain low until you take some steps to make it better in no time.

But it takes a lot of persistence and patience and a steady stream of on-time payments on a monthly basis to rebuild the credit respectively. You have to think on smaller time frame when you begin applying for the credit cards. After the bankruptcy, there is a possibility that you may not be eligible for the consumer credit card at all.

How to rebuild the credit in two ways

1. Get a secured card: The secured card provides the best means when you are coming out of bankruptcy. Through this card, you can deposit some money in the savings account and that such a deposit secures the line of credit for you.

For instance, if you make a 300 dollars deposit that has an annual fee of 29 dollars, then your credit card limit will be 271 dollars. If you pay the account on time and make small purchases monthly, then this secured card will be quite helpful towards your credit. The usage of 10 to 15 percent of credit line is good, but you need to keep your balances low.

2. Get a Retail Card: The department store cards and the retail cards have relaxed credit requirements that will make you eligible to buy any of them after the bankruptcy. This can only happen once you have made a series of steady payment on time through a secured card respectively.

You have to pay the account entirely in every month, because of the higher interest rates that are linked with these cards.

How the credit can be used wisely

It is better for you to use your credit wisely after you get relieved from the post-bankruptcy period. You can follow the given steps below.

1. Set up automatic payments: It happens that several people opt not to receive the paper bills and tend to forget making the payment on time. So, you need to set up automatic payments so that the payments get directly deducted from your account each month on the respective due date.

2. Only borrow what you can afford to borrow: As soon as you know your budget and limit, you will know what you can afford. If on the regular budget you cannot meet the expenses for a trip to Bali, do not risk using a credit card to fund such a trip. Kindly refrain from using credit card excessively and use it only for those things that you can afford to buy.

3. Make a budget and stick to it: You need to evaluate on what you can manage to pay on your debts monthly after you have paid off your expenses. If your budget for food is 200 dollars, do not spend more on it. Overspending on one expense will not allow you to pay your debts on time.

Conclusion

After bankruptcy, you have to move cautiously and rebuild your credit in the correct manner. You have to ensure that you pay your bills on the stated time and avoid the bad credit score again from the late payments respectively. If you use your bank account consistently and responsibly, you will never become a victim to financial difficulty at all.

How to Avoid Bankruptcy and Eliminate Unsecured Debts

1. 1) First and foremost, know your budget. Precisely, curtail your budget. Do not left aside the bills you have to pay shortly. Create short term goals and invest according to that. There can be no hard and fast rules how to avoid bankruptcy, but only your perception can save you many a times.

2. 2) Pay exact taxes punctually. A non-payment of tax can easily result an asset penalty by the Revenue Department (IRS). A consequent raid can leave you a bankrupt anytime if you do not pay tax on time. Thus, rather than going through the small business bankruptcy tips, first check whether you are a tax-clean person.

3. 3) It is advisable for you if you are a small business investor to maintain separate bank accounts so as to pass up a bankruptcy. The reason is evident that in case of a situation of unsecured debts, you can save your compensating amount from clutch of the creditors.

4. 4) Avoid taking loans for repayment of any other debt. It will gradually leave you with more unsecured debts with time.

5. 5) Be transparent to the creditors about your financial status. If you are truly facing a financial crunch, convince them with substantial causes and proofs.

The above small business bankruptcy tips can make you mindful of the debt situations. However in case of unsecured debts, it is important to learn how to avoid bankruptcy. If such a condition appears, negotiate with an authentic debt settlement agency who can mediate between you and your creditor. The process can curtail your debt amount into almost half. It’s a legitimate way out to fight against bankruptcy. However, you need to show at least $10k debt to enter into a debt settlement program.

Debt settlement companies are widely available in just about every state however some are just flat out more experienced than others in debt negotiation. That’s why it’s so important for consumers to use debt relief networks.

5 Budgeting Tips During Confinement

There are a lot of new expenses that come along when you have a new baby. It starts with paying for the confinement nanny that you know you can’t make it through without and ends with a never-ending list of baby supplies that your little one won’t make it through without. Following are five tips that will help you survive this period financially as well as mentally.

Budgeting Tip #1: Stock up before bringing the baby home.

The moment you discover that you are pregnant, it is time to start stocking up on all the supplies you know you will need. Start collecting coupons and matching them up to sale prices at stores for baby wash, diapers, disposable wipes, and all the other things you know you are going to need.

You may also be able to take advantage of samples and other freebies that baby product manufacturers often give away. Even if it is just one free diaper or a sample of baby wash, you can collect these things and have a nice stockpile by the time your baby is born.

Budgeting Tip #2: Get crafty and make diapers, wipes, rags, and other essentials.

If you are going to use cloth diapers, you can make them on your own for a fraction of the price they sell in stores or online. You can even make cloth wipes to keep your baby clean and fresh. It is also very cheap and easy to make disposable wet wipes at home, though you may want to wait until it is closer to time to bring the baby home so they don’t dry out over time.

If you have a sewing machine you can even collect adult and child sized t-shirts from around your home and turn them into baby wear. Flannel shirts and jackets can be turned into baby blankets, burp cloths, and warm baby sleepers. These things are expensive in stores, but with a bit of thread, sewing machine, and some old clothes already in your home you can save tons of money.

These are all great time passers while you are waiting to have your baby as well!

Budgeting Tip #3: Create a hand-me-down circle of friendship.

Do you know others in your neighborhood that have had babies in the past year? How many other expectant mothers do you know? You can coordinate a circle of friendship with all of these other mothers so clothing and other needed items can be handed down from one family to another. As the circle grows there will be different sizes of clothing available for more and more parents to be involved.

The idea here is that everyone receives some things they need from others. While giving away things that you no longer need you help someone else and receive things you do need from others. This circle can continue as your children grow, since children’s clothing can be quite expensive.

Budgeting Tip #4: Don’t buy what you don’t need.

Most parents don’t use baby changing tables often and they become useless once the baby is toilet trained. Think of things that you won’t necessary use or don’t absolutely need and simply don’t buy them. This is the simplest way to save money.

Budgeting Tip #5: Cut the junk food and eat healthy from the start.

Finally, you can save money just by not buying junk food and focusing on healthy foods during and after pregnancy. It will help you feel better and get your body back faster, but it will also save your budget!

How to Shop to Save Money

Don’t sacrifice the family budget to a shopping spree. Learning how to shop to save money will help keep your budget on track. Visiting the sales, conserving energy and clipping coupons are all positive steps in the right direction, but with some careful planning and organized thought, you can make your dollar stretch even further. Here are a few budgeting tips to get you started.

Set a realistic budget and stick to it. A budget will help you to know where your money is going. And this will make it easier to find where you can cut corners and make adjustments to your spending. With some commitment and a few lifestyle changes, it can be simple to live within the constraints of a well-planned budget.

There are basic needs that are worth spending on because they are important for your health and security. They are the things that you cannot live without and should be set in your budget. These are food, transportation, shelter, and clothing.

Record your spending so that you have a visible track of where your money is going each month. You are likely to remember the bigger bills like the mortgage, but it’s easy to lose track of the incidental spending you do. After recording your sundry spending you’ll probably be surprised at how much you spend on movies, eating out, video rentals and other small items. Being aware will help you to find ways of saving a few dollars here and there. This can add up to a significant saving each month.

Rather than hiring videos borrow them from your local library at little or no cost. Look for fun, inexpensive ways to entertain family.

Always remember to make a list when you go shopping. If you only bring the amount of money you need to buy your items this will prevent you from buying things that are not important.

Compare prices and do not limit your options to one store only. Rather than buying on impulse try window-shopping first.

You can save money by conserving electricity. Be sure to turn off appliances that are not in use. And compare your monthly electricity bills on a regular basis. Shop around with other providers to see if you can get a better deal. Pay your bill on time and many power companies will give you and early payment discount.

Shop for clothing at the end of the season as prices of many items will be on special at his time of the year. Your budget should have a sum included for clothing so make sure you stick to your budget amount.

Decide on the things that are important to you. Recognize the items that you need and the items that you want to have. Remember that you should only buy things that are important and needed. These are just some of the way you can shop to save and keep your budget on track.