Personal Budgeting and Finances

Shout Out to my Top 10 Entrecard Droppers in October!

ejcooksey@ejcooksey.com (EJ Cooksey) — Mon, 02 Nov 2009 07:15:00 +0000

Thank You!

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Reevaluate Your Policies to Save Money

ejcooksey@ejcooksey.com (EJ Cooksey) — Tue, 27 Oct 2009 03:46:00 +0000

If you’re like many people nowadays, you are probably on the lookout for ways to put or keep more money in your pocket. It’s strange how that biweekly or monthly paycheck seems to disappear without a trace. Look into your insurance and medical policies, as well as tax deductions for some pennies here and there.

Our extracurricular activities get the blame for hogging all the money, but there are other explanations as well. Depending on the things you like and don’t want to give up without a fight, it could be that the things we need are also taking more money than they should. Let’s look at a few of those things.

Claim more deductions.

Who doesn’t want to get a check from Uncle Sam? It’s even better to see that money in your paycheck each pay period throughout the year. Take a look at your refund and your W-2 deductions. Claim another deduction when possible to see more money now. Getting a refund means that the government has the use of your hard-earned cash instead of you throughout the year.

Insurance policies.

Take a look at your life insurance policy. What type of policy do you have? Do you have more coverage than you need? It is a good idea to investigate this each year. When the kids go to school or you hit retirement your needs may change. In the meantime, you could actually be saving hundreds of dollars right now.

Bundle policies.

Get life, auto and homeowner’s insurance from the same company. If you have separate companies for everything, you are probably spending too much. Some companies offer deals to have the chance to carry more of your business. Not sure if your company will bundle policies together, you’ll never know if you don’t ask.

Health insurance.

What are your savings? Many employers offer health plans, but are those plans really meeting your needs? If you are in reasonably good health, you can qualify for an independent policy through providers like Blue Cross/Blue Shield for less money. If you and your spouse have the same insurance plan offered at your jobs, take advantage of that to coordinate benefits and pay next to nothing for medical services.

Car insurance.

Financial people recommend that you reevaluate your coverage every three years or so. If you have been an excellent driver with no record of accidents, look for car insurers that reward this type of driving history with low premiums and other perks. Even if you are okay with your car insurer, see if they can offer you better premiums for being a loyal customer.

What policies do you hold? From time to time it is okay to see if you can save money on them. In fact, it is prudent to do so. The extra money you need could be in the pages of one of those policies.

The Cost of Not Having Health Insurance

ejcooksey@ejcooksey.com (EJ Cooksey) — Wed, 19 Aug 2009 18:57:00 +0000

One of the biggest concerns in our society is health insurance. On the one hand, it costs so much of our pay to have a health insurance policy in the first place. On the other hand, millions of people are living day to day without the umbrella of health insurance to cover them and their families.

These people are just like you and me. They are not necessarily poor or destitute. People whose jobs are part time may not be offered health insurance as a part of their benefits.

This means that they must look for an independent policy. Depending on their age, medical history, and other demographics, their independent policy may be more than they can afford on their salary. As a consequence, they and their family go uninsured.

With the high price of premiums, it may cost several hundred dollars a month for health insurance for the entire family. This means less money in the paycheck for living expenses. Families have to make a determination of what is more important at the time.

Many people use the emergency room at the hospital as a doctor’s office. When they have a serious health problem, they go there. A community hospital accepts patients without insurance with their promise to pay the bill. These bills can be high and payment can drag on for some time.

To combat the costs of uninsured patients, hospitals raise their fees for service to offset the cost. These increased charges are passed on to patients with insurance. Depending on what their health insurance company is willing to pay, that could mean a substantial hospital bill after your stay, even with health insurance.

Without health insurance, people cannot get the help that they need when they are feeling poorly. Conditions worsen until they must go to the hospital. Now, the cost is more than it might have been if the person had had the means to visit the doctor.

Children make up a good percentage of the uninsured. When their parents can’t afford health insurance, they go uncovered as well. Over-the-counter medications substitute for regular check-ups at the doctor’s office. Childhood vaccinations are important for the future health of a child. Children that don’t receive them are at risk for various diseases that the vaccines would prevent.

Another health concern is pregnancy. Those who have no insurance and can’t afford prenatal care are more likely to develop problems during their pregnancy, either with the mother or with the child. Pregnancy may seem like an event that takes care of itself, but all sorts of things can happen during those nine months. Being under a doctor’s care brings peace of mind and immediate help if something is wrong.

What is the high cost of not having health insurance? It is increased illness, higher premiums and hospital charges, not to mention deaths. This is a serious issue for which a resolution couldn’t come a moment too soon.

Making the 4th of July Festive on a Tight Budget

ejcooksey@ejcooksey.com (EJ Cooksey) — Sat, 27 Jun 2009 15:54:00 +0000

There are so many things you can do and food you can make that doesn’t have to cost a fortune, but will make your 4th of July sparkle as if you spent a fortune! Below are some decorating ideas, food ideas and other inexpensive things you can do!

Decorating Ideas

Red, white and blue decorations and patriotic decorations come out before Memorial Day, so you should be able to find an abundance at your local dollar store.

Homemade 4th of July decorations are easy to make and you probably have some or most of the supplies you’ll need already on hand.

Here are some inexpensive things you can make using items you have on hand:

Craft Stick Flags

Paint 5 sticks red and 4 white (per number of flags you want to make). Let dry. Glue the painted sticks together in an alternating pattern by gluing them to one craft stick on the right side and two broken craft sticks in the middle and on the left side. Cut a small square of blue construction paper and color white stars using a white gel pen. When the glue has set, turn the flag over. Glue on the square of blue construction paper and glue another craft stick to the long craft stick on the back. Let the glue set.

Stars on a String

Cut out large stars using red, white and blue construction paper. Decorate as desired. Fold over one tip of each star and staple or glue to desired length of red or blue string. You can use these to decorate your base camp!

Festive, Yet Inexpensive Ideas for Food

Chicken: You can usually buy chicken on sale really cheap. So, before the 4th is upon us, be checking your local store’s weekly sales paper for chicken on sale, then stock up. You can make great bbq chicken on the grill.

Corn on the Cob: Summertime is the best time to get inexpensive corn on the cob. You can grill it in their husks right along with the BBQ chicken!

Watermelon: Watermelon is one of the least expensive foods for the amount you get. You can make watermelon salads, fruit bowls and other yummy side dishes that will fill your family and guests up!

Other things you can do inexpensively to celebrate our nation’s independence are:

• Have a backyard party and have everyone bring a dish to pass.
• Add sparklers to your burgers when serving them.
• Don’t pass up invites to friends or family who are having backyard parties and take a dish to pass.
• Don’t feel like you have to go all out with decorations. Simply using red, white and blue paper plates, cups and napkins will give your home a patriotic feel.
• Use a vase you already have and fill it with flags from the dollar store. Give one to guests as they arrive too.

Celebrating the 4th of July shouldn’t cost a fortune, especially in a recession! Using simple tips like the ones above will help you stick to your budget AND enjoy a festive Independence Day!

Ten Tips to Create, Prioritize and Manage a Budget

ejcooksey@ejcooksey.com (EJ Cooksey) — Mon, 01 Jun 2009 21:33:00 +0000

Mention the word “budget,” and people’s eyes tend to glaze over. Budgeting isn’t the most exciting activity in the world, and on the surface it is extremely limiting. We don’t like it when other people try to tell us how to spend our money, and even setting parameters of our own may seem too much.

What many of us do not realize is that a budget is the ticket to financial freedom. It restricts what we spend each month, but in the long run it allows us to get more out of our money. Instead of frittering funds away on things we could comfortably do without, we can save up for emergencies as well as things we enjoy.

Here are ten tips for creating a budget, setting priorities and keeping tabs on spending.

1. Be realistic. All too often, we create the perfect budget on paper, only to completely blow it in practice. This is frequently because we are not realistic about our expenses. It may help to save all receipts for a month before you start on your budget. That way you can evaluate how much you’re really spending and avoid budgeting too little for any given item.

2. Remember the little things. Eating out every day instead of packing your lunch might not seem like a big deal, but it can really add up. The same is true for many of the habits we have. Cutting back where practical can save you more money than you might think.

3. Lower your bills when possible. A good place to start is with your cable bill. Do you really need all of those movie channels? What about your cell phone bill? Would a less expensive plan meet your needs? Knocking a few dollars a month off of your bills could leave you with hundreds of extra dollars each year.

4. Get the whole family involved. A budget affects the entire household, so everyone should have a say. You may have to make changes that everyone doesn’t agree with, but they will be more likely to accept them if you listen to all input. Family members may also have ideas that you wouldn’t have thought of on your own.

5. Give everyone an allowance, not just the kids. Setting reasonable limits for discretionary spending will help prevent your budget from being derailed.

6. Make sure the necessities always come first. Budgeting for entertainment and other wants is important, but if push comes to shove, food, water, clothing and shelter are the most important things. Budget for these and the things that enable you to work (such as transportation) first.

7. Include savings in your budget. Saving up some money for emergencies is crucial for every individual and family. Try coming up with an amount to save each month and include it in the budget before any non-necessities.

8. Keep track of all expenditures. Save receipts or write down every expense so you can compare your actual spending to your budget. If you spend less money than budgeted, consider allocating more to savings. If you spend more money than you planned, you need to either watch your spending more closely or make adjustments to your budget.

9. Avoid using credit cards irresponsibly. Buying on credit will result in less spending of money in the short run, but you will have to pay it back with interest unless the balance is paid in full each month.

10. If you get extra money, use it wisely. Consider putting it directly into savings or using it to pay down debt. Spending it on something you want might feel good, but that doesn’t help your overall financial picture.

How to Create a Family Budget

ejcooksey@ejcooksey.com (EJ Cooksey) — Tue, 26 May 2009 05:30:00 +0000

For singles, creating a personal budget is relatively easy. They tend to have a good handle on how much money they have coming in, and when tracking expenses, they only have their own to think about.

But creating a family budget is a whole new ball game. Most families have multiple sources of income. And when there are multiple spenders, that makes things much more confusing. This is one of the main reasons that families lack a formal budget. But having a budget and sticking to it can greatly improve a family's financial outlook.

Making a family budget may be tricky, but it can be done. Here's how.

1. Take inventory of all income. If a certain source of income fluctuates from month to month, use the lowest amount or average it out.

2. Keep track of all expenses for a month or so. Keep all of your receipts, and ask all family members to turn theirs in to you each day.

3. Add up your monthly expenses. Be sure to include bills, debt payments, groceries, and everyday expenses such as lunch money and transportation costs.

4. Get the family together and discuss ways you can trim the budget. Getting input from other family members will help you determine which expenses are necessary and which ones could be cut down or eliminated. Maybe you or your spouse could start taking lunch to work instead of eating out, or maybe the kids can drop an extracurricular activity.

5. In addition to individual expenses, discuss how you can cut down on the electric bill, groceries and other necessary family expenses. Consider such things as carpooling or taking public transportation, buying more generic foods and adjusting the thermostat.

6. Estimate how much you can save on regular expenses, and cut the completely unnecessary items out of the budget. Then re-figure it and see where you stand.

7. If you end up with a surplus, allocate a portion of it to savings. If you're in the red, go back and rework the budget until you have more income than expenses.

Being Realistic

One reason that family budgets often fail is because they're just not realistic. It's great to cut down on expenses, but sometimes we tend to go too far. For example, cutting entertainment out of the budget completely might look good on paper, but we all need a little diversion every now and then. Instead of cutting such things out of the budget completely, consider finding ways to lower the cost.

Going back to the entertainment example, maybe you've been going to dinner and a movie as a family twice a month. But eating in and renting a new release would be much cheaper, and you would still get to spend quality time together.

Individual expenses can also be tricky. This can be resolved by allocating a certain amount for each family member to spend each week. If someone spends his entire amount before the week is up, reevaluate his expenses and adjust if necessary.

Creating a family budget can help keep spending under control, leaving more money to pay down debts and save for future goals. But in order to succeed, close monitoring is essential. Your efforts will be rewarded, however, with less financial stress and more money in the long run.

How to Stay Motivated While Getting Out of Debt

ejcooksey@ejcooksey.com (EJ Cooksey) — Fri, 13 Mar 2009 16:38:00 +0000

Living Debt Free presents this motivational movie to help you stay motivated when trying to get out of debt

9 Simple Ways to Save Money on Your Groceries

ejcooksey@ejcooksey.com (EJ Cooksey) — Thu, 19 Feb 2009 19:57:00 +0000

It never fails, we budget for our groceries, but the bill always ends up being more. We underestimate, run out of things faster than expected and overall, everything is becoming just too darned expensive!

To make things a little bit easier, here are 9 simple ways you can start saving money on your groceries.

1. Go with a List:

Yes, I know it's a pretty obvious suggestion, but it's amazing how effective it can be. You purchase only what you need and avoid all the other yummy distractions of the grocery store.

2. Meal Planning:

Planning your meals in advance makes it easier to get your list together and ensure you buy only exactly what you need. You can get help with your meal planning at Dine Without Whine AND they actually put your grocery list together for you too.

3. Eat Before You Go:

Another classic tip. If you're hungry, you'll want to buy (and instantly eat) everything! Have a meal or good snack before you go to avoid impulse purchases.

4. Stock Up on Staple Items When They're On Sale:

If you see ketchup or your family's favorite sauce on sale, stock up. Or if it's a certain type of soup or frozen vegetable your family eats all the time, buy a bunch of it. As long as it doesn't spoil and you have space to store it, you will save money in the long run. The nice thing about this is if you continue to stock up on a variety of items, you'll have a nice pantry full of food at any given time.

5. Cook from Scratch More Often:

Yeah, yeah, it sounds easier said than done, but it doesn't have to be too complicated. It's no secret that pre-packaged items and convenience foods come at a premium price. They save you time in preparation, but they eat up your budget and let's face it, time IS money. Plus, if you're using Tip #2 and planning your meals, cooking from scratch more often is a whole lot easier.

6. Comparison Shop Before You Leave Home:

No, I'm definitely not suggesting you go from store-to-store looking for the best deal. That takes too much time. Check the flyers that come to your door and see who is offering the best deals on what you actually need. If you don't have any flyers at your door, visit the store website as they generally post flyers online.

7. Use Coupons Sparingly:

Sure, coupons offer a great deal, but most coupons you'll find are for items you don't really need or use. Resist the urge to think, "Wow, that's a good deal" and search for coupons based on items you need to purchase instead.

8. Keep the Little Ones At Home:

If you have young children that want everything that they see, it's easy to get into the trap of buying items you don't need, treats that aren't healthy and become victim to other grocery store distractions. Keep the kids at home with Daddy (it's a good bonding opportunity) or a relative. You can even swap grocery store shopping times with your neighbor. Not only will you save money, but you'll save your sanity too!

9. Make Quick Stops for Fresh Ingredients:

This may not be easy if you're on a tight schedule, but if you can work it in, it can save you a bundle. One of the biggest culprits in grocery budgets gone bad is spoiled food. If your fruits, veggies and other perishable items are always going bad, consider shopping for them more frequently, but in smaller quantities and restrain yourself from buying items you don't need. If you have any teen-aged kids, this would be a great chore for them too.

There you go, 9 ways to save on groceries. But in order to make these tips work, you really need to have a plan in place. You need to know what your family needs and what you'll be eating. To make your meal planning a whole lot easier, sign up for you 1 ¢ no-risk trial at Dine Without Whine. You and your grocery budget will be glad you did.

January's Top 10 Entrecard Droppers

ejcooksey@ejcooksey.com (EJ Cooksey) — Sat, 31 Jan 2009 21:14:00 +0000

Today is the "First Official Entrecard Top Dropper Day".

In honor of that, here is some link love for my Top 10 Entrecard Droppers for January.

Thank you all for visiting and dropping your Entrecard!

The Secret to Finally Paying Debt Quickly

ejcooksey@ejcooksey.com (EJ Cooksey) — Tue, 20 Jan 2009 03:51:00 +0000

If you've struggled with debt for any amount of time, you know how it can feel like you're in a big black hole, you just can't seem to dig yourself out of. Balances never seem to go down and you need to keep tapping into credit cards just to make ends meet.

There is plenty of debt advice out there and you may have tried things like debt consolidation, making large payments to your debts to try to pay them faster and other methods that just don't seem to work. Things just keep getting more and more difficult to manage.

But it really doesn't have to be that way...

If you've been able to keep up with your minimum monthly payments until now, there is a solution for you. And it's remarkably simple if you follow the appropriate steps laid out for you.

I'm talking about the "Pay Debt Quickly Kit" that shows you how to:

- Pay debt off faster without having to make any large payments.

- Get what you want from your creditors to pay off your debt faster and even improve your credit score.

- Make drastic changes in the way you think about and handle money without feeling like you're deprived in any way.

The kit includes everything you need to get to debt-free faster. From software that helps you quickly and easily calculate your precise debt-free dates to strategies to take control of your finances and even work with your creditors so that you benefit, instead of them - this kit has what you need to eliminate your debt.

Learn more & get debt-free at: Pay Debt Quickly

Everything is available for instant download and you don't have to wait for anything to come in the mail. That means you can start sleeping better and stop worrying about your debt, starting RIGHT NOW.

Wishing you a Merry Christmas...

ejcooksey@ejcooksey.com (EJ Cooksey) — Thu, 25 Dec 2008 06:06:00 +0000

and a very Prosperous New Year!

8 Frugal Christmas Gift Giving Ideas

ejcooksey@ejcooksey.com (EJ Cooksey) — Sun, 14 Dec 2008 06:45:00 +0000

With Christmas less than two weeks away, you have probably made your list of gifts for family and friends. Perhaps you have also decided to reduce the amount spent per gift this year, and that’s ok. Frugal gift giving doesn’t necessarily mean cheap, but rather thoughtful and creative gifts that your recipients will appreciate and treasure.

Here are some ideas and suggestions on how you can present wonderful gifts this Christmas without breaking the bank.

1. If you love to bake, why not put together a gift basket filled with homemade cookies and muffins as well as a variety of teas. You can purchase baskets at any dollar store, as well as the wrapping to go along with it.

2. Another gift idea that has always been popular is a basket filled with bath and body lotions, body wash, and scrubs. These items are very affordable and you can create a unique basket filled with scents that are sure to please any recipient.

3. Do you have a friend or family member who loves coffee? If so, you can purchase a box of sample coffees. Add some homemade muffins and present it in a gift basket as well.

4. Aromatherapy candles are also a big hit. Add CDs that can calm and soothe such as sounds of nature or the ocean. You can find these affordable items at dollar stores and online for half the price.

5. If you make your own homemade jams and jellies, why not put together a gift basket filled with these items along with homemade muffins and some green tea. This is a healthy and inexpensive way to say you truly care about the recipient’s well being.

6. Perhaps you have a friend who loves books. There are plenty of books on a variety of topics you can buy at half the price at bookstores or online.

7. How about a large soup cup filled with hot chocolate mix and marshmallows for those cold winter nights? You can use your creative ideas to make this a most unique “basket” of treats.

8. Gifts do not have to be expensive. It could be a picture of you and your friend placed in a lovely frame, a homemade hat and scarf for the winter or even a CD of favorite Christmas music that you put together for that special friend.

Frugal Christmas gift giving not only saves money, but allows you to really think about a gift that is unique to the person. It shows you have taken the time to select or create those items you know will be appreciated by a friend or family member.

How to Handle a Recession

ejcooksey@ejcooksey.com (EJ Cooksey) — Fri, 05 Dec 2008 16:59:00 +0000

Are we in a recession? Considering everything that has been in the news lately, one can say with confidence we are indeed in a recession.

Not too long ago Nouriel Roubini, a financial expert, predicted that only two major banks would be left after the housing crisis and the economy returned to normal. It was a prophetic prediction.

What does this recession mean for you and me? It means we have to tighten our bootstraps (if we haven’t already) and begin planning for any eventuality.

While economists comment that the last two recessions lasted for eight months respectively, it is no comfort to learn that the housing crisis has not yet reached bottom and more and more companies are closing down leaving thousands of people unemployed.

Wages have decreased, more families are in debt than ever before, health-care costs continue to rise, and our grocery bills have eaten into our household budgets significantly.

In order to alleviate the burden of all these factors, the best advice economists can offer is to take a fiscally conservative stance on our spending habits. Here are some additional suggestions:

* Stick to a monthly budget

* Refrain from buying expensive items on credit

* Set up a fund for emergencies (at least two months' income)

* Try to add the maximum amount allowed to your pension/retirement fund

* Stay healthy with a proper diet and exercise program (This is a preventative measure that will reduce the cost of prescription drugs and other health-related costs)

* Pay down debts

* Purchase with cash

* Buy groceries in bulk utilizing coupons whenever you can

* If you have teenage children who are receiving an allowance, determine if they can apply for a part-time job after school

* Increase your deductibles on car and homeowner’s insurance

* Keep your automobile well-maintained

* Winterize your home and use energy-efficient appliances and light bulbs

* Walk whenever possible instead of driving to a local store

Anything you can do to reduce the amount of expenditures can only help you through this economic downturn. In the meantime, stay calm, focus on your budget, and save as much as you can.

What Is a Recession?

ejcooksey@ejcooksey.com (EJ Cooksey) — Fri, 05 Dec 2008 16:38:00 +0000

Image by publik18 via FlickrIn its simplest terms, a recession occurs when there are “two consecutive quarters” of negative growth.

While most economists have been fickle in utilizing the term, it is nonetheless clear that our economy is in the throes of a recession. More importantly, however, is the fear that the recession will subsequently turn into a depression.

How does a recession occur? Well, when there is not enough supply to meet a specific demand (as in the case of oil), prices rise and spending becomes stagnant. This, in turn, causes companies to decrease expansion. No expansion means a decline in the work force and, consequently, unemployment rises. Consumer confidence dissipates, prices of homes decline, and everyone becomes affected.

It can also be suggested that the sub-prime mortgage crisis had a direct impact on the current recession. One can use the dot.com analogy to preface the seriousness of our current crisis. Remember when the stock prices for the internet industry increased beyond anyone’s imagination? Most people were buying these stocks because they felt the return on their investment would be phenomenal. It was - for a time, until the market turned sour on internet stocks and over five trillion dollars was lost, thus inviting a recession that affected companies worldwide.

Similar to the brokerage houses that were making money hand over fist today, the only people who profited from the internet stocks were the CEOs of these companies. Shareholders and everyone else were the losers.

Recently, economists have ascertained that the market will have five negative quarters. Others have stressed the importance of having on hand at least 18 months' worth of savings. Still others, concerned about the Rescue Plan’s execution, are worried that we may be headed for a depression.

Obviously, not everyone agrees as to what will eventually occur. They do agree, however, that until the banks' lending ability is alleviated, the stock market’s volatility will continue.

This global Rescue Plan was designed to give banks enough money so that they were not tied down by these toxic mortgages that prevented them from lending to one another. This is also why it is currently very difficult for an individual to obtain a car loan, college tuition loan, or other type of loan from banks.

Unless and until this plan begins to have a significant effect on the global economy, thus thwarting a total collapse of our lending institutions, this recession will continue. In other words, we are faced with economic uncertainty and must do what we can to ensure we are prepared for any eventuality.

Ten Tips for Budgeting Your Holiday Season

ejcooksey@ejcooksey.com (EJ Cooksey) — Thu, 04 Dec 2008 05:40:00 +0000

Image via WikipediaThe tree isn’t the only item that will be trimmed down this December. Here are ten tips for budgeting your holiday season to enable you to not only enjoy the time spent with your family and friends, but make it an affordable time as well.

1. If you usually give presents to sisters, brothers and their children – try and exchange presents with just your nieces and nephews. This can save quite a bit of money in the long run.

2. Shop early – very early. Begin holiday shopping during the summer months at stores that have sales every week.

3. Make your holiday list ahead of time. Decide how much you are willing to spend for each person and stick to it. Keep in mind that in January you will be getting those bills and may find it difficult to pay them off.

4. Pay off all your holiday expenses beforehand. You can accomplish this by shopping early and paying with cash. If you must use a credit card, pay it off when you receive the bill. This will decrease the amount of bills you receive after the holiday season is over. Moreover, you will feel terrific!

5. Buy ornaments, wrapping, bows, and decorations early. How early? The day after Christmas is when every card and ornament is on sale for as much as 50% to 75% off. If you can make it a point to buy these items after Christmas, you will have enough to carry you through the next two or three years.

6. Open a Christmas club account at your bank. It’s very easy and a great way to save for the holiday season. You can begin in February and put away as little as $5.00 a week. By October, you will a nice little check to use to purchase gifts.

7. Make your own decorations. This can be a wonderful experience for the entire family. Everyone can pitch in and make ornaments for the trip, wrap gifts with newspaper, or decorated bags. Make holiday cards on your computer, send out holiday cards through the internet, and make your own holiday gifts as well.

8. Buy gifts online this year. It not only saves you time standing on long lines at department stores, but you can save money as well. In fact, you are probably receiving emails from stores right now who are offering discounted merchandise. Check it out!

9. Use coupons to buy holiday gifts. There are a myriad of online coupon sites wherein you can save a bundle on specific items.

10. If you have set up a budget for gift giving, why not give gift cards. They have become very popular over the last several years. In this way, you can set a limit to the amount you wish to spend and, at the same time, the recipient will be able to buy a gift they need or want.

The holiday season is a time of reflection: thinking about all the people in our lives that we love and cherish. A present is just the icing on the cake!

6 Ways to Avoid Holiday Debt

ejcooksey@ejcooksey.com (EJ Cooksey) — Sun, 30 Nov 2008 22:01:00 +0000

While we all enjoy the Christmas holidays, once the bills begin to arrive we are usually brought back down to earth with a bang. If you want to avoid holiday debt, here are some tips.

1. Open up a Christmas club on January 2nd. You can contribute five or ten dollars a week to the club and by October you will either have $200 or $400 to spend on Christmas gifts.

2. Avoid using your credit card to buy gifts. This only adds to your ongoing debt and will just leave you stressed out after the holidays. Pay with cash whenever possible. If you have to buy an item with a credit card, pay the bill off as soon as you receive it.

3. A Christmas budget would be a great idea to decrease the likelihood that you will overspend on gifts. Make a list of the friends and family members you intend to give a gift to and assign a dollar amount. It is important to stick to the budget.

4. Begin Christmas shopping earlier in the year. There are always sales every week – take advantage of them. You can even buy two or more of the same item in case you have to give a gift you weren’t planning on.

5. If you like to shop online, use one credit card. There are many online coupon sites that offer great savings throughout the year. Utilize the coupons, check out the sales, and make your purchases. Remember to pay the credit card bill balance as soon as possible.

6. Perhaps Jane and little Joey want something very expensive this Christmas. If you can’t afford it, don’t buy it. With the list of gifts they will present to you, there is sure to be some items you can afford.

Holiday debt can be avoided if you start with a Christmas budget, put aside a few dollars every day, or open a Christmas club. Instead of buying a cup of coffee everyday, put that money towards Christmas.

Let’s be honest, buying items with a credit card is very easy to do these days, especially with internet shopping. But if you shop early, you can certainly pay off the debt before the holidays and start the New Year with a “bang” instead of a whimper.

How Not To Go "Money Mad" on Black Friday

ejcooksey@ejcooksey.com (EJ Cooksey) — Sat, 22 Nov 2008 22:28:00 +0000

You have made your Christmas list, checked it twice, and now you are prepared to venture out on the most important day of the year – Black Friday. Wait! There is just one word of caution – do not go "Money Mad" on this sales day!

Who doesn’t love a sale?

Who dislikes paying off debts?

In this case, the two are not mutually exclusive. Shopping on Black Friday, although you can enjoy savings, can also put you into debt if you are not careful. Here are some tips to help you stick to your Christmas list and your budget:

* Check the prices either online or in the newspaper before you go.

* Clip out the coupons that offer an all-day discount.

* Stick to the budget you've set out and the price you've assigned for each gift.

* Bring just enough cash to cover the cost of the gifts.

* Use a debit card, or if you really have to use a credit card, stick to the amount you set out to spend and go no further.

* Arrive early in the morning.

* Bring a friend to not only help you find the items, but also to deter you from buying anything that’s not on the list.

* Check out the store before Black Friday and locate the items you intend to purchase. You may also wish to check if they can be held for you until Friday.

* When you arrive at the store, go directly to the department where your items can be found.

* After you have finished all your shopping, leave immediately. Don’t stop to browse or look for something to buy for you. You and your friend can have a leisurely lunch to relax and de-stress.

Yes, the sale items will be enticing and tempting, but remember that the bill will arrive in the mail the following month and you will have to deal with the consequences if you overspend.

Here’s another thought to ponder. Are these sale items marked up specifically for Black Friday? Consider how much you would pay for a blouse on sale if you shopped in August. Department stores are in the business of making money. In order to do so, they are certainly not going to sell an item for no profit.

If you really want to save money, time, and stress – start your Christmas shopping in the early spring or summer. You can shop on any sale day when the stores are less crowded and you have time to consider the purchase.

In fact, there are millions of people who have boycotted Black Friday altogether. Perhaps they know something we don’t!

8 Tips for Shopping on "Black Friday 2008"

ejcooksey@ejcooksey.com (EJ Cooksey) — Wed, 19 Nov 2008 05:28:00 +0000

Ah, the day after Thanksgiving, also known as Black Friday, can either be a shopper’s dream or the worst nightmare.

For the last several years, department stores have been opening up earlier every year. Lines have formed outside these buildings anytime from 2 a.m. onwards. For those of you shop on Black Friday, you are well aware of the many sales offered by most merchants.

For those of you who have never shopped on Black Friday, it’s quite an experience. The key to landing those terrific sales is to have a plan.

Armed with your Christmas list, experts advise that you go directly to the departments where your items can be found. If necessary, visit the departments before Black Friday so you can easily find the best route to the items on your list.

Avoid browsing and try not to buy anything for yourself. Time is precious on this day, and there are always mobs of people trying to grab that last sale item on the rack.

While Black Friday offers great deals, it is a good idea to follow these tips:

* Check out the newspapers the week of Black Friday for sale items or you can check out the Black Friday 2008 ads at Black-Friday.net

* Clip out any coupons from the newspapers as well as online coupons that can be utilized in stores.

* Check each store's online website to determine what items you will be purchasing.

* Check out what time the stores will open and close. Keep in mind some stores offer sales for a few hours only.

* Wear comfortable clothing and shoes.

* Try to pay for items with cash (use a waist pouch or a neck pouch to store the cash). Bring a bottle of water – it can get awfully hot!

* If you have to pay with a credit card, use only one card and pay off the balance as soon as possible.

* Take someone with you so that you can both shop for the items on your list.

Although most people look forward to Black Friday, others avoid it like the plague. That’s okay, too. With online shopping becoming more popular, you can avoid the mobs and shop from the comfort of your own home, at your own pace.

In any case, stay focused on your mission; stay vigilant with those around you, and stick to your list!

I'm in Debt and Can't Get Out...Help!

ejcooksey@ejcooksey.com (EJ Cooksey) — Fri, 29 Aug 2008 05:26:00 +0000

Image via Wikipedia In today's economy many people are taking on more credit card debt than they can handle, or what was once manageable has changed due to circumstances that makes their debt hard to repay.

Does this sound familiar to you?

Why are so many people in too much debt?

Most of the time it is through no fault of their own. They may have incurred the debt sensibly, but lost their jobs or become ill and were unable to work. Then they find themselves saddled with debt that they can no longer afford.

Or, by using poor financial management which causes many people to end up over their heads in debt. An increasing number of people keep multiple credit cards, which essentially multiplies their debt. Although they may be able to keep up with the minimum payments, interest keeps them in debt for many years. Also, many credit card companies are often willing to extend credit that the borrower may not make enough money to pay back.

How do you keep your debt manageable?

Compare credit cards for the best possible interest rates, and keep your open accounts to a minimum. One or two credit cards should be plenty. No one needs a pocketful of credit cards.

When paying back your credit card debt, try to pay more than the minimum payment due and this will prevent interest from accruing. If at all possible, pay the balance in full each month. This will save you lots of money and keep your credit in good shape. Stop charging if something comes up and you need to charge more than you can pay back in a month until that balance is paid off.

How do you get out of debt?

All is not lost though if you're already in more debt than you can handle. The key is realizing that there is a problem before it is too late. It will take discipline, but you can get yourself out of debt on your own in most cases.

Step 1: Stop taking on new debt.

Step 2: Work out a personal budget.

Start by making the minimum payment on everything each month. Put any extra money toward one debt until it's paid off, and then moving on to the next. Choose one of the following ways to pay off your debts: highest to lowest interest or by lowest to highest balance.

You may need some assistance if you've tried to manage your debts on your own but are having trouble coming up with any extra money to put toward them, or even enough to make the minimum payment. Talk to your creditors, explain your situation and see if they would be willing to reduce your interest and payments. If that doesn't work, credit counseling and debt consolidation are options.

It can be very scary when you find yourself getting into too much debt. But it is often possible to regain control of your debt on your own. If not, help is available. Don't be afraid to seek it out.

What Are Credit Bureaus

ejcooksey@ejcooksey.com (EJ Cooksey) — Sun, 20 Jul 2008 23:22:00 +0000

By definition a credit bureau is an agency which collects and sells information about the creditworthiness of other people and businesses. It collects information about your credit history including how much credit you have available to you, what your balance is and your payment history.

A credit bureau or agency compiles the information to give individuals a credit score, which is a number lenders use to evaluate the risk of lending money or giving credit to you. They also generate reports of your financial history and sell them to prospective lenders. This information is used to not only determine whether or not to extend credit to you but at what interest rate. This is one of the reasons it is extremely helpful to have good credit. It could mean the difference between a 1% car loan and a 10% car loan – potentially thousands of dollars depending on the cost of the car.

Here's what a credit bureau does not do:

A credit bureau does not make any decisions about whether or not you should be given credit or a loan. They simply exist as an information collection agency, it just so happens that all the information they collect is directly related to your credit history. This means loans, credit cards and bank account information will all be present for creditors to evaluate their lending decision on.

The three largest credit agencies are:

* Equifax
* Experian
* TransUnion

According to the Fair Reporting Credit Act, citizens of the United States are entitled to one free credit report each year. These can be obtained at http://www.Annualcreditreport.com. This is the only place you can take advantage of an entirely free credit report. If you see the words “free credit report” on any credit reporting site, it is likely a promotional offer to get you to become a member and there will be fees charged on your credit card at a later date.

It is important to take advantage of your free credit report because it helps you stay on top of your credit score, but more importantly it protects you against identity theft. When you view your credit report you can easily see if any accounts have been opened in your name. When you find discrepancies, contact the organization immediately. While it can take some time to clear your identity and clean up your credit after being a victim of identity theft, the good news is that you are not responsible for the debt.

Personal Budgeting: How Far Ahead Should You Plan?

ejcooksey@ejcooksey.com (EJ Cooksey) — Wed, 28 May 2008 02:07:00 +0000

When developing a personal budget or personal financial goals it can be tricky to figure out how far in advance you should plan. If you’re too short-sighted you could wind up with savings that don’t meet your needs. Conversely if you think too far out, you could be putting some of that money you’re tucking away for your savings to better use.

Here’s how to figure it all out: What are your personal financial goals?

List your personal financial goals on a piece of paper. They might be goals like:

* To save for my child’s college education
* To save for retirement
* To save money for emergencies
* To buy a new car or house

Once your personal financial goals have been listed, here are a few calculations you can make to know how much to save.

Emergency fund:

Experts advice people to set aside at least three to six months of cash or liquid assets (investments you can easily convert to cash) in the event of a loss of job, medical emergency, short-term disability, etc. Figure out how much you have to set aside for this emergency fund after your current expenses, and create a goal. If you make $3000/month then you’ll want to set aside a minimum of $9000. This doesn’t mean you have to save it all tomorrow – begin saving for it and create a plan. Maybe you’ll be able to save that much in a year, maybe it’ll take two.

Debt:

Most experts agree that your total monthly debt payments shouldn’t exceed 36% of your gross monthly income. This debt includes your mortgage, car payments and credit card debt. Add up your debt and calculate your monthly gross income to see where you are. If you’re above this ration, create a plan to get your debt down quickly.

Savings:

You’ve probably heard the rule that you need to save 10% of your income. This rule is a good rule to follow, assuming you are placing additional money into a retirement account. Use this 10% rule with your other savings goals including your emergency account, college education or other goals.

Retirement:

Experts tell us that our retirement income should be 75-80% of pre-retirement income. This means if you’re making $50,000 right now, your retirement income will need to be $37,500.

Using these numbers will help you determine exactly how much you need to save, how much you have to work with, and how long it will take you to save the money. A little basic planning and goal setting will make the process understandable and manageable. The numbers presented here, and the guidelines, are just that - guidelines. Your personal budget and personal financial plan needs to meet your needs and the needs of your family. This is why it is important to set personal financial goals and to save with a purpose.

Recommended: Family Budget Guide Ebook

Five Tips on How to Live Within Your Means

ejcooksey@ejcooksey.com (EJ Cooksey) — Wed, 28 May 2008 01:53:00 +0000

Living within your means is a liberating way to live your life. It means no debt – debt is one of the most common causes of relationship stress. Living within your means gives you the freedom to save money for special things rather than always scrimping to pay your bills.

Unfortunately, many people don’t live within their means. They live above it, way above it. This happens for many reasons. Maybe they just don’t keep track of their expenses and purchases are made without thinking. Maybe they’re trying to keep up with their friends and family. Maybe shopping is a misguided form of therapy. Whatever the reason, the end result isn’t a happy one.

If you feel that you could do more to live within your means, here are a few tips to help keep your life on track and your financial status right where it belongs:

Tip #1: Keep track of your spending. It is important to know where your money goes. Once you have an idea of what you’re spending your money on, you can begin to control it.

Tip #2: Buy a used car or at least keep your new car for more than a couple years. A new car depreciates the moment you drive it off the lot. Sometimes it depreciates as much as 50%. A used car already has that depreciation figured into the cost.

Tip #3: Don’t be afraid to grocery shop with coupons or stock up on items for sale. Personally I love it when the grocery offers "buy one get one free items", particularly when the items are large ticket items like meats. Not only do I save tons of money but when I can’t figure out what to make for dinner, I can just open my freezer and I have options.

Tip #4: Do buy quality clothing items, not quantity. When you’re shopping for yourself, don’t make whimsical clothing purchases or follow the latest trend. What’s better? Spending $40 on a pair of jeans that will be out of style next season, or spending $50 on a pair of jeans you can wear for five years?

Tip #5: If you have a credit card debt, develop a plan to get out of it. A debt elimination plan begins with reducing your interest rate. A phone call to your creditor can usually start the process. Next, stop the charging on those credit cards and get busy paying them down. Pay more than the minimum balance or you’ll never get it done. A great way to manage the process is to develop a monthly budget. Your budget will contain your income, expenses including debt and your savings.

Living within your means is possible! It is empowering to have complete control over your money and your finances, certainly less stressful than letting your money control you!

Review: Dig Out of Debt eBook Package

ejcooksey@ejcooksey.com (EJ Cooksey) — Sun, 25 May 2008 04:25:00 +0000

Product Name: Dig Out of Debt eBook Package
Rating: 9
Where to buy: Living On A Dime

Description:

A complete eBook package containing 5 eBooks to help you get out of debt involving everyday situations. These eBooks are full of articles, money saving ideas and tips and even recipes to help you save on your grocery bill. Written by two women who have been there, these eBooks will help you to become frugal with your money and time.

Review:

These eBooks are great. They have given me resources that I never imagined. You always know there are ways out there to save your money even if you have very little income to start with. If you’re like me you never really spent a lot of time trying to figure them out. These eBooks have laid them all out for me.

One of these eBooks contains information on money management. Through the articles and ideas in this eBook I have learned how easy it is to set up a budget and stick to it. Now my money works for me.

The Cleaning Cents eBook taught me a lot about just getting rid of the things I don’t really need. It showed me how I can save money just by doing little things around my house. I am a work at home mom and have found that it’s pretty easy to spend all day in front of my computer. All of a sudden there you are it’s time to start fixing supper and your still in your PJ’s, haven't showered, the laundry isn't done and the dishes, well, we won't talk about the dishes piling up in the sink. There is a tip in this eBook about getting yourself up and dressed and how it affects you and your money. I tried it and it works.

The Debt Free Holidays eBook is very helpful. I always seem to spend more money than is necessary when it comes to the holidays. This eBook provided me with the information and the hope I needed to keep myself on a budget for all the holidays. I still give my heart out but it doesn’t cost me my firstborn anymore.

Speaking of my children there’s an eBook in this package called Kids Cents. It tells you ways to get your kids to help you, how to save on school supplies, recipe ideas for breakfast, lunch and snacks and even how to keep your children entertained during the long summer months.

My very favorite one though is the Grocery Savings eBook. I hate to shop and the grocery store is my least favorite place. I used to spend hours cutting out coupons only to find they expired or I left them at home on the table. Not anymore. I have cut my grocery bill in half with the tips and ideas I’ve found in this eBook. I don’t cringe at the thought of heading to the store anymore. I still hate to shop, but not to the point it feels like pulling teeth to do it.

If you're looking for ways to save money, get yourself out of debt and live a better financial life try this package. It’s so full of great ideas, tips and common sense that you’ll find yourself wanting more and more of their information.

Two Methods to Become Debt Free

ejcooksey@ejcooksey.com (EJ Cooksey) — Wed, 14 May 2008 00:23:00 +0000

Many people are struggling with credit card debt. Unfortunately it doesn’t take much to derail your credit. A few missed or late payments on any credit card or loan can cause creditors to start calling and bring a world of stress into your life. If you are in this situation, here’s two methods on how to get your credit back on track and eliminate credit card debt to become debt free as quickly as possible:

Debt Free Method #1- Pay off highest interest credit card first:

Step #1: List all of your credit cards, including your outstanding balance, your interest rate, the minimum payment percentage and the minimum payment according to your latest statement. Yes, this could be painful and may strike a chord of panic in your chest. Don’t worry. This is the first step to gaining control of your finances and becoming debt free.

Step #2: Once you have that list, highlight or circle the credit card with the highest interest rate. This is the card you’re going to attack first.

Step #3: Add up the minimum payments for all of your cards. This means if you have five credit cards, what minimum balance do you owe on each and what is the total of your minimum balances?
Step #4: Create a personal budget. Yes, this may sound like a scary word, but a personal budget will tell you exactly what you have to spend each month and how much you have to pay off your credit card balances.

Step #5: Pay the minimum balance on each credit card you have EXCEPT the one with the highest percentage rate. On this card you will pay as much as you can on top of the minimum balance. So if your minimum balance is $25, and you’ve budgeted to pay an extra $50 toward your credit card debt, you’ll make a payment of $75.

Step #6: Once your balance is paid off from your highest credit card, move on to the next highest credit card percentage rate. Now you will add the extra $50, plus whatever the minimum was on the card you paid off, to the minimum that is due on the next card. (Example: $50 + $25 + $25 = $100) Continue the process until your debt is paid off.

Debt Free Method #2 - Pay off smallest credit card balance first:

Step #1: List all of your credit cards, including your outstanding balance, your interest rate, and the minimum payment percentage and the minimum payment according to your latest statement.

Step #2: Once you have that list, put them in order of smallest balance to largest balance. The card with the smallest balance is the one you’re going to attack first.

Step #3: Add up the minimum payments for all of your cards. This means if you have five credit cards, what minimum balance do you owe on each and what is the total of your minimum balances?
Step #4: Create your personal budget to see exactly what you have to spend each month and how much you have to pay off your credit card balances.

Step #5: Pay the minimum balance on each credit card you have EXCEPT the one with the smallest balance. On this card you will pay as much as you can on top of the minimum balance. So if your minimum balance is $25, and you’ve budgeted to pay an extra $50 toward your credit card debt, you’ll make a payment of $75.

Step #6: Once your balance is paid off from that credit card, move on to the credit card with the next smallest balance. This time you will add the extra $50, plus whatever the minimum was on the card you paid off, to the minimum that is due on the next card. (Example: $50 + $25 + $25 = $100) Continue the process until your debt is paid off.

Pick a method that will work for you, put it into practice and before you know it YOU can be DEBT FREE!

Tip: Call your credit card companies and see if you can lower the percentage rate. If they will not lower your credit card rate, consider shopping around for a card with a lower rate. If possible, transfer the balances on your high rate cards to cards with a lower rate. Keep in mind that you will likely incur a fee for this transfer. Make sure you cancel the card that you just transferred the balance from. You certainly don’t need the temptation of a card with a zero balance to ruin your progress.

Are you ready to finally live debt free? Click here to learn how to get out of debt and on the road to financial freedom today!

Coping with Financial Stress

ejcooksey@ejcooksey.com (EJ Cooksey) — Tue, 13 May 2008 22:39:00 +0000

Debt can be stressful... you may feel like there is no hope of getting out of debt. If you find yourself in this situation, there are actually many things you can do, so don't give up hope! The main thing is not to panic and to take time to work out a plan to get out of debt.

The first thing to do is to be honest with your situation and find out exactly how much debt you are in. Take some time to sit down and figure out exactly how much you owe, who you owe it to, and how much you have to pay on a monthly basis.

The second thing you need to do is to determine how much you have available each month to pay towards your debts. To do this, you'll need to add up your monthly expenses, including the monthly payments on your debts, which you determined in the first step. Gather your bank statements, check registers, credit card statements and receipts for the last 6 months to determine how much you spend on a monthly basis.

The third thing you need to do is determine how much your monthly income is. If you bring home more than you spend each month, then decide how much extra you can put towards your debts each month. If you spend more than you bring home each month, then you will need to make some decisions, such as cutting back on expenses that aren't necessary. You may need to get creative for a while to see where you can cut back. Or, you may want to consider getting a part time job to get caught up on your debts and to build up a cushion so you don't get into debt again.

After you've done these exercises, if you find that you are in over your head, you have several options available. You can call your creditors and ask them to work with you by lowering interest rates, lowering your payment amount, or allowing you to skip a payment or two until you can get caught up. There are also several non-profit agencies that offer budgeting and debt management help for free or for minimal costs (just be careful; there are many scams out there, so be sure you are working with a non-profit agency with your best interests in mind).

The most important thing to do if you find yourself in debt is to not panic. Be honest with yourself about your situation and be constructive by thinking of the positive things you can do to help yourself get back on the right track.

Are you ready to finally live debt free? Click here to learn how to get out of debt and on the road to financial freedom today!