First, make decreasing and eliminating all your current debt a number one priority. Whether you have a pile of credit card debt, or you have applied for a few too many payday advances that you have not been able to pay off, a large amount of debt can have a major effect on your net worth. Instead of being able to keep your money for yourself, your debt has a way of taking away all the money you have worked so hard for. Whether you depend on your credit cards to pay for everyday expenses like groceries, or you needed the assistance of payday advances in order to get you through till your next paycheck, each time you take on more debt it decreases your net worth even further. Regardless of whether you have one card or five, you will need to prioritize your bills and pay off the one with the highest interest rate first. If you have a few payday advances lingering, make those a priority since the interest rate you are paying on those loans are probably much higher than all your credit cards combined. Once you pay off one, move on to the next until they are all paid in full. Avoid taking on further debt and you will soon find you have more available cash than you ever thought was possible.

Second, modify your lifestyle to reflect your income. While you may have dreams of purchasing an expensive car, or the newest fashion trends, odds are you may be finding that your income may not be able to support the lifestyle you would love to have. Odds are keeping up with a lifestyle that is above your means is probably what caused you to accumulate so much debt in the first place. Following a lifestyle you want but can’t currently afford will cause you to take on even more debt, so instead of digging out, you will end up digging an even deeper hole for yourself which can delay or possibly prevent you from achieving your goals. Once you finally amass the large sums of money you have dreamed of, only then should you consider a lifestyle change, but even then you may find that it’s not really worth wasting all your money on.

Lastly, create a budget and stick to it. While the idea of living within your means may sound simple enough, it can actually be quite difficult to accomplish if you do not know how much money you have coming and going each and every month. Unless you sit down and write down every expense you have, you will potentially end up following the same process until you reach a breaking point where bankruptcy may be the only option. Take a look at your current monthly salary, and then list out all your expenses. You should have a total of two columns, one for mandatory and one for luxury expenses. The mandatory ones are the bills you cannot live without like groceries and utilities, but the luxury expenses are the things you like but do not necessarily need in order to survive like your daily coffee run. In order to bring your expenses in line with your current salary, you will need to cut out the luxury expenses that are pushing you over your limit. This can sometimes be the hardest part for many people. We all love our indulgences and it can be difficult to determine which ones we want to keep and which ones should go when we would rather keep them all. Cut out as much as you can, but don’t feel like you need to deprive yourself. Keep what matters most and cut the rest and you will find you soon have more cash left over than you may have thought was even possible.

These are just a few of the simple tips that can help you improve your net worth at any age. Create and stick to a budget, and make eliminating all your debt your primary goal and you will soon be on your way to achieving the levels of wealth you have always dreamed of.

How The Program Differs From Cash For Clunkers

Don’t confuse the cash for appliance program with the recently completed “Cash for Clunkers” program. These are two separate programs, and they have important differences. Unlike the “Cash for Clunkers” program, the cash for appliances rebates are up to each state as to how they’ll be administered and run. If you live in California, for instance, you might get rebates between $50 and $100 on only air conditioners, refrigerators, and washers. In other states, they might expand the list of eligible appliances to include water heaters or freezers. Some rebates will come with additional state incentives, but it will be up to you to find out more about those, and they may not be advertised with each appliance vendor. You won’t have to trade in your old appliance, like you had to trade in your old car for “Cash for Clunkers.” Instead, you just have to purchase the new model within the set time period set by each state, which can vary. You, the consumer, will have to figure out after that how to dispose of your old appliances.

New York, for instance, is planning on rolling out a cash for appliance program in February. Florida is waiting until April, to offer rebates to their citizens. Some rebates are limited to a dollar value, and others, like Florida, will be given as a percentage of the total cost of the system. To get more information on what each state is offering, check out your state’s energy department online.

Get Even More Savings

Not everyone will be able to take advantage of these programs, for various reasons. The federal incentives may run out before everyone gets their new appliance and the program ends prematurely, just like Cash for Clunkers. If you don’t get in on the action quickly, it’s possible you’ll lose the window of opportunity that this program provides. If you do get a rebate, you can expect that there will be a large secondary market for used appliances and that people who want those will be willing to buy them and move them off your property for a small sum of money. As long as they are in working condition, there’s no reason you can’t get a little more savings by selling the old appliance at a discount to someone else who would consider it an upgrade too.

The Obvious Costs

If you plan on moving your items yourself, you won’t pay a moving company. However, there are still many upfront costs associated with moving from one apartment to another. Almost all apartment complexes will ask for first month’s rent and a security deposit. Depending on where you live, this can range from $600 to $1200 or more. While you might be able to fund the extra costs of moving by getting a short-term cash advance loan, it’s still going to be a while before the previous apartment returns your security deposit. Add to these cost an application fee ranging from $25 to $50, and last month’s rent too, and you can see this going to be an expensive proposition, no matter how you look at it. Staying put may eventually be your least expensive option.

The Not So Obvious Costs

Even so, if you’re looking to fund a different lifestyle, you might find savings elsewhere in your budget. If, for instance, your new apartment is closer to your place of work, you might save on gas. If you give up your car entirely because you plan on taking mass transportation, it can easily save $300 to $500 in transportation costs a month, particularly if you have a car loan. The same, however, is true if you’re going to be living further away - your transportation costs will naturally increase. If you must travel further to get to a grocery or the daycares in the area are far more costly, you will have to add those into your budget calculations. Do some worse case scenarios. If gas goes back to $4/gallon will you be able to pay your rent and keep food on the table? These are very important considerations in light of the way energy costs can severely impact your household budget.

Energy costs can be contained, however, if your apartment complex offers free cable or no heating bills, this can also be a part of your budgeting equation. Find out exactly what utility bills you will be responsible for and then see how that differs from your present situation. Maybe the apartment complex is wired for free wi-fi, saving you $50/month or about $600/year. What’s included in your rent and what is going to come out of your pocket? Figuring out whether you save or lose money on a deal is just the first step. If you decide that the increase in your household expenses is well worth the increase in your living standard, then opting to move can still be a great choice - as long as you remain within a viable household budget.

Seek out new ways to make some extra income. Whether it is as simple as selling off some of your stuff on eBay, or even taking on a part time job at the local fast food restaurant, finding a way to make some money is better than not making any at all. Another option is to check out some of the online job boards for freelancing jobs you can do from the comfort of your own home. With jobs ranging from virtual assistant to even computer programmers, it can be a great option for making some extra cash when you need it most. If you find you like it, you can either consider pursuing this career full time or part time if you prefer. Either way it can be a great source of extra cash for paying your bills.

Cut the unnecessary expenses. If you haven’t already, now is the time to get rid of the services and other items that most may consider a luxury. If you have a high priced cable TV subscription, or a gym membership that you never use, now is the time to eliminate those bills. While this process will not help you regain the money you have already paid, it will help save you from having to dole out cash you don’t have for products you don’t really use.

Cut out luxury expenses as much as you possibly can. When you get a new job you can then determine whether or not you really need the expenses you cut to begin with. Most likely you will find you do not need 500 channels of TV, or the subscription to the magazine or newspaper that you hardly ever read. While being unemployed may be painful, it can actually help you find ways to save money that you may have never even thought of when you were employed.

Shop around for your must have services. While most of us may not have much of a say over which company provides our electric or other city supplied services, you can save some cash by shopping around for the best deal on things like your cell phone, or even your cable bill. Many cell phone companies do not require a contract, and your best bet for saving some cash may be to go with a pre-paid cell phone if you only need it for emergencies and don’t use too many minutes in a month. Making this switch can help save you money that can be applied to other bills when times are tough. You can always go back to your original provider when your money situation improves.

Remember that your situation is only temporary, and that you’ll be able to return to your current standard of living one day - but you may find your new frugal lifestyle is enjoyable, and once you’re employed again, that extra money might find a home in a savings fund. Cut out all unnecessary expenses, and look for ways to make some extra cash that may be outside the norm, and you are likely to find the extra cash needed to pay your expenses until you are fully employed again.

Waste Not, Want Not

In a throwaway culture, when you’re taught to buy ready-made or convenience food, the natural tendency is to throw the rest away if it’s not eaten that day. Some take-out food can be very healthy, but it’s still wasted. Learning how to care for leftovers, freeze uneaten foods you’re tired of, and pack your pantry with items that have a high shelf life can easily stretch your food budget without spending any extra a week. Instead of throwing out bananas that are over-ripe, freeze them and use them in smoothies. Have a stash of rice and beans in the pantry to cook up, whenever, as a healthy substitute for Ramen. Learn to freeze things and use them later. Learn to use dried foods in your cooking, as they have a long shelf life.

Learn To Cook

This skill is one of the most frugal skills that anyone can learn, yet few do. It may be easier to jump to the nearest restaurant to buy your food, or buy pre-packaged convenience foods at the grocery, but you will pay a sharp premium for these foods. In addition, they are loaded with salt, sugar, and preservatives, things easily avoidable when you cook at home. If you don’t have time to do this on the weekdays, do it on the weekend and freeze in batches to use during the week. If you learn how to cook, you can stock your fridge with milk, eggs, butter, flour, and a few veggies and fruits, and have plenty to eat for weeks in the form of omelets, pancakes, breads, pies, puddings, shakes, and more. Even in the Great Depression, a family could live off one chicken for an entire week, when all parts were cooked and used.

Use Your Local Food Pantries

If you’re able to locate a free food source, like a local pantry, and you’ve gotten into a bind with your budget, check them out. You may be able to obtain free or low cost groceries from a source that helps to feed the community. When you’re done and back on your feet, be sure to give back yourself by donating items they need when you can.

Not A Sting, A Courtship

What makes people so vulnerable is the idea that only naïve people get taken by romance con artists. The truth is that these shysters are dealing with many people at one time, and have fine-tuned their skills to be convincing liars who are willing to commit large amounts of time, for the eventual big payoff - your money, and/or your credit identity. For that reason, the romance con artist will approach you as any other romance partner might, with offers of courtship and romance only, and wait until you are in their confidence before they ask for money or get the keys to your house to get private information. By that time, if you’ve fallen in love, you are at great risk of being taken financially.

Even When Dating Do Background Checks

Online dating is very popular, both with people looking for romance and for con artists looking for their next target. Online dating sites provide the perfect cover for someone trying to locate people who are vulnerable and love-starved, and easily manipulated into sending money or giving out information that can later be used to create fake accounts or make large purchases. In the event you are never asked for either, sometimes a romance con artist will simply ask you to receive packages and forward them somewhere, all the time leaving you unaware that you are participating in a theft ring.

Being Offline Isn’t Protection Either

Unfortunately, romance opportunists exist everywhere, even offline. If they can get something out of you, they will. Many a woman has married only to find their new husbands have lied about their finances, their employment, and their bank accounts. Once the marriage contract is in place, they become the means of support for the deadbeat husband who proceeds to drain all accounts dry, drive up credit card balances, and abscond with anything that isn’t nailed down. Men aren’t immune either as romance con artists exist in both sexes. The end game is when all money is funneled out of the victim’s hands, and then a portion of it is used to start again elsewhere, with another fake romantic partner.

Can We Trust Those We Love?

Anyone that proclaims love will not be upset if you want to do a background check or ask about their financial situation. These matters are an important element of starting a life together. Always seek to meet a romantic partner as soon as possible, and establish their trustworthiness not solely by their actions, but by direct documented proof. If one month after you meet them they are offering you a chance to become a business partner or claim they are dying of cancer and need your money or else they’ll never make it, walk the other way. Be warm-hearted with your partners, but be cold-hearted with your cash.

Large Government Areas

Washington, DC, has prospered with the stimulus plan and probably has more jobs than anywhere else in the country. Granted, they may be government jobs, but a job is a job and they can pay very well. When considering moving to a large metropolitan area, you have to consider the cost of living. While the salaries may be far higher, the cost to live there may also be astronomically high. Are there areas you would consider living in and commute to work? How will you make ends meet should gas prices rise substantially? What are food costs like and what kind of lifestyle will you have there? All of these factors can influence a decision to move somewhere while looking for work.

Is There Family In The Area?

Another way to scout out an area before actually moving there is to talk to family in the area. Find out how they are doing and what the actual state of the economy is like there. Would they be willing to put you or your family up for a short period while you looked for a job in the area? Even if there is no room, they may be able to help you determine what an apartment would cost and the actual cost of living from first-hand experience, before you take the big plunge.

Relocating On Your Own Dime

Few employers are willing to pay relocation costs at this time. There are just too many qualified people out of work in their own area to justify bringing someone from outside and paying for it too. If you do decide you have found an area worth taking a chance on, you will have to factor in the costs to move there. Moving entire households is far more expensive than just moving one person. If the unemployed worker can move for a short period of time as a try-out to find employment, it can be worth it. Otherwise, moving an entire family with no plan of action in place can be too big a risk in most cases, unless there is family in the area to fall back on. Keep track of what it will cost to relocate and how to reduce those costs, to make the effort worth your while in the end.

Due to the failure of some of the world’s largest banks, gone are the days of banks approving loans for mortgages that the numbers showed the borrower could not afford. Banks now require borrowers to have a near excellent credit score as well as a hefty down payment in order to qualify. You also need to prove your ability to make the monthly payments by providing copies of pay stubs and any other forms of income that would make you appear as a better risk to the lender. While buying your first home may seem like it is out of reach, here are some simple tips for saving money for your down payment so you can finally own the home of your dreams.

First, setup an automatic savings plan. No matter how badly you want to own your own home, the thought of trying to save money can be quite difficult, especially when your budget may be tight. One of the easiest ways to start saving money is to open up a savings account geared specifically to paying for your home. You can start with as little as $20 a week if that is all you can afford. This account should not be used for monthly bills or any other unforeseen expenses that may crop up. This automatic savings plan should serve only one purpose and that should be to help you buy your first home. Think of it as a set it and forget it account. Setup the automatic withdrawal once and just forget about the account. Over time you will have a tidy sum of money that will help you pay the down payment on your first home.

Second, create a budget and stick to it. Unless you have one already, you will need a budget in order to determine exactly where all your money is going on a monthly basis. The only way this can be accomplished is by writing out a detailed analysis of all your expenses. Write down all your mandatory expenses, like electric, groceries, insurance etc, and then include all the luxuries that you spend money on monthly. Total them all up and compare them to how much you make in a month. If your expenses are more than your salary then you need to consider pruning off some of your luxury expenses. You will need to eliminate at least enough charges to make both numbers equal, with enough leftover to cover the savings deposits. If you still can’t find enough money, then you may need to re-analyze your mandatory expenses. Things we often consider mandatory can really be done without, like cable TV, magazine subscriptions, and even pizza night. You may find that you can possibly live without some of these, for at least a little while.

Lastly, consider picking up a second job. If you have tried to budget your money and you still can’t seem to find the extra cash you need in order to save for a down payment, then you may need to consider taking on a part time job. Whether you work in retail, or you join the ranks of those offering their services on one of the many freelance sites on the web, taking on a second job can sometimes generate the extra cash you need in order to achieve your goals. Whether you choose to work only on the weekends, or you dedicate all your free time to your second job, your dedication will pay off in the form of extra cash for you and your new home.

These are just a few tips to help you save money for a down payment on a home. Create an automatic savings plan, and consider taking on a second job if needed, and you will be on your way to building the money needed for the down payment on the home of your dreams.

Multi-Generational Families

While it may not seem ideal to have multiple generations in one home, it can offer an easy way to get free day care in exchange. In the past, the older generation took care of the grandchildren for periods of time, and this can still work in multi-generational homes. It can help people who are out of work to have a source of child care that allows them to get lower paying jobs, go back to school, and schedule interviews and job fairs. The goal shouldn’t be just to save money on child care, but to use that buffer to include activities that have the potential to generate income in the future. Otherwise, you stand the chance of losing ground, even while saving money on child care expenses.

Choosing To Work At Home

Another unconventional route is to find a source of income while remaining at home. There are many types of jobs that are done via telecommuting, from freelance programmers to website business owners. You can develop your own ideal part-time job at home to supplement your income while you are still employed, and if you are laid off can shut down conventional daycare while still maintaining some hold on a career and financial future. Working at home also has the added benefits of not costing more in gas, food, and clothing expenses.

Take Advantage Of All Benefits

Check into all the potential benefits you can get to help reduce the cost of child care. Flex credits for working parents allow a parent to put money aside for day care expenses on a pre-tax basis. The funds are then claimed for dependent care and can save as much as 28% on taxes on those funds. Another way to keep expenses in check is to ask if your day care offers particular subsidies for single parents or some other demographic membership. It may seem unusual, but many social programs like the YMCA daycares do give back to the community by offering a break for people who may be within specific demographics. Not all do, and you need to ask to make sure. However, if you never ask, you’ll never know and it’s an easy way to reduce costs just for claiming the discount.

Avoid taking on additional debt

One of the biggest red flags to lenders is your ratio of available credit to utilized credit. If you percentage of utilized credit is too high, it can actually hurt your chances of qualifying for a loan. Even if you have never missed a payment and have never gone over your credit limit, a high ratio tells banks that you possibly have a hard time managing the credit you have been allotted. You should aim for a percentage of use of no more than 35% of total credit limit. Banks want to see you can handle any allocation of credit that you have been given. It’s ok if you carry a balance on your card; just make sure you do not surpass a certain percentage of credit use on any of your cards. Pay off any outstanding payday loans in full so that they don’t impact your credit rating, and make sure that at least your recent credit history is golden.

Evaluate your finances

All your debt, including your mortgage, should not exceed 30% of your total annual income. This includes all credit card payments, as well as how much you feel you could comfortably afford as a mortgage payment. If you find that you calculations exceed 30% of your annual income, then you may want to consider holding off on applying for a mortgage until your credit card balances and payments have decreased. Your mortgage payment should not stress your budget in any way and avoid banks that tell you can afford more than the number you have in mind. The numbers don’t lie, and its best to stick with the ones you feel most comfortable with.

Save up for a down payment

While most would rather finance their entire mortgage, many don’t realize that financing 100% of the purchase is perceived as a higher credit risk by the lender. If you have dreams of buying a home, it would be in your best interest to apply for a loan of no more than 80% of the total purchase price of the home. Banks look at the LTV or the loan to value ratio of the amount of your mortgage to the total purchase price of the home. The lower the down payment you make on the home, the higher your LTV will be which increases your chance of potentially getting denied for the loan. If you do not have any money saved, consider putting off your dreams of a home and start saving money up for a down payment. It can be something as simple as funneling $20 a week into a savings account. Over time you will have accrued enough money to cover the down payment that will make you look like a much better credit risk to your potential lender.

Check your credit report

Unless you already review your credit report once a year, make sure to pull your reports before you go to the bank. Make sure there are no errors on your credit report and that all the account statuses are correct. You will also want to make sure to keep all your payments current since your credit score can make or break your ability to qualify for a mortgage.

These tips can help you look like a better credit risk to potential mortgage lenders. Avoid taking on additional debt, and make sure to keep tabs on your credit report, and you will soon have obtained the level of creditworthiness that will make any lender want to work with you.