Tax Day and Finance Advice

Archive for the ‘Financial Tips’ Category

What happens if my ball does not start rolling snow?

This can happen when your budget really can not afford to pay even the smallest of all debt. So I suggest some things to do.

A) Sell something:

First know that can not borrow or borrow to pay its debts because it would be illogical. So the first answer is “sell something.” There are people who live in tears because she can not pay their debts and drives a car, sell the car

But … What if I need a car?

Then sell the car and buy a cheaper one. If you drive a car for $ 45,000 and has a debt of $ 20,000. Sell your car and buy one for $ 25,000!. Read the rest of this entry »

3 – THE SNOWBALL PLAN

To create wealth you need to regain control of your income. The way in which to pay our debt is called “Plan Snowball and the method works as follows:

- You make a list of your debts.
- Sort the debts from the smallest to the largest.
- List all debts except the house that will be discussed later.
- Will paying off debt from smallest to largest.

No matter if the interest is low or high, you will record your debts smallest to the largest amount.

The reason for doing this is to get a quick win and obviously feel that is gaining little by little, creating a snowball effect that starts to spin from the smallest debt, to repay the debt larger.

How it works?

At the end of this guide I will leave a direct link to download the file to be used from your computer or print (I recommend this option.) The steps then are:

1 – Enter your debts from lowest balance to highest balance.
2 – Do not worry about the interest, unless two debts have the same interest (first note of minor interest).
3 – Redo this sheet each time you settle a debt.
4 – Keep the leaves above to see your progress.
5 – “New Payment” is removed by adding to the account you are working with the payments of the accounts above. Because when the child settles debt, have money to go first to pay the next debt.
6 – “Payments that are” put the number of payments remaining to be done.
7 – “Total payments” is the amount of money you pay in total.

Plain and simple, with good management of its budget, with good control and discipline their snowball would start rolling.

Understand that if you start working on the art of paying its debts and feel really comfortable, has to overcome these four barriers have just said, two of them small and two of them major.

Starting to work:

Dave Ramsey in his book proposes what he calls “baby steps” it means just taking small steps. So start right now with the guide to get out of debt proposed by the author. There are many other guides in this regard and that is good, one must adapt to feel that gives you greater security or dynamic.

1 – MAKE A BUDGET:

First you must have a strict budget in which it detailed everything. Having this document means that instead of finding out where your money is gone, you decide where you want to go.

The important thing is to start budget detect where slipping away your money without account and you can see how to get around this with your current salary, to start paying your debts gradually. Read the rest of this entry »

One thing to remember is always to invest and achieve wealth, we must be prepared and have the habit of falling into debts, no one wants to be like those famous footballers or singers of a rock millionaires overnight end up losing everything .

If today we are used to make those sacrifices that nobody wants to do tomorrow, live like no one can live. People are not used to delay TODAY TOMORROW pleasure to have a higher result

Two major obstacles

There are two points that we need to understand before you begin. The first is that denial is not a problem.

It’s simple, if you have a debt problem and to not recognize that has that problem is impossible to start working and obviously see the obstacles with which they encounter.

The second problem is that you understand some myths of the debt. Such as the debt is not an instrument (unless you know good from bad debts recognized), but ordinary people who have not yet begun ainvertir; is a terrible mistake to believe that debt is a tool to get things that are not could pay in cash. In short, stop borrowing more and more. The debt could be good for some investment, but not to buy things we can not pay now. Read the rest of this entry »

11 – Funding for consumer spending can distort the economy and create personal traps which are then difficult to leave:

Recall that in times of crisis appear many so-called “opportunities” to consume products or services, that even with the ease of credit cards, may affect our future. Remember to be rational rather than emotional, not to fall into some traps that could complicate our situation later.

12 – Monitor your investments offered by the market allows, after the crisis decant, to take advantage of opportunities:

As mentioned earlier, it is important to be aware of the whole situation to take advantage of opportunities. Many investors sell part or all drastically their investments (whether bonds, stocks or other instruments), and we Alester remain rational and monitor everything we can see the real opportunities and use the crisis to be better off tomorrow.

13 – should keep some cash savings, in a combination of legal tender coins and hard currencies, and in a safe but accessible:

This advice is not much to contribute, it is part of any diversification that we always have and obviously with good liquidity for urgent or emergency times we need to make use of this money that could be protected in some way or another. Read the rest of this entry »

The tips are summarized below, to which my little sumo them comments for better understanding:

1 – The impact of the crisis in your personal finances depends on your situation:

The crisis will have greater or lesser extent (even notoriety) at the time of our life we are living, our savings, our debts and income and expenses are going through, plus the ability to manage our personal finances.

2 – To make adjustments must first make a diagnosis:

As a doctor gives us a remedy for a disease to survive a crisis and make the necessary adjustments, it is important to diagnose personal our finances. We analyze revenues and expenses that we have (which speaks here on the blog) to make effective adjustments.

3 – It is important to stay informed:

In the information age who has information has power. In the blog I spoke earlier about the importance of being informed and today I remember that to get through a crisis is important to be informed in every way. We are interested in or not, a crisis touched in some way or another. Read the rest of this entry »