20 Ways to Find Money Now

Finding extra money to help reduce your debt can be a challenge. We have tried everything from selling items at garage sales to selling gold jewelry. There is always something you can do to cut back and find extra cash.

While working on the grocery portion of our budget, we had determined that we were buying too much milk every week. It would either go to waste or we were guzzling it down before it went bad. So, we decided to to buy a gallon less every week. By doing this we save $3 a week. You might say," Wow! A whole three dollars." But, actually that adds up to be $12 a month. Now imagine finding ten ways to cut back $3 a week. That would add up to $120 a month. Would $120 a month make a difference in your life?

Here's 20 quick ways to raise or save cash fast:

1. Sell your investments.
2. Sell assets, like a boat, coin collection, second car, the previously mentioned jewelry, etc.
3. Seek a reduction in your child support obligations.
4. Use your tax refund or alimony payment.
5. Transfer your credit card balances to a card with a low interest rate. (I am putting a ban on credit cards and it may be hard to get a card these days, but give it a shot).
6. If your credit card company charges an annual fee see if you can get it waived.
7. Get rid of overdraft protection on your bank accounts. This just gives you a reason to overdraw your account.
8. Destroy any checks you are given by your credit card company. Interest on cash advance checks will make it harder to pay off your debt.
9. Always make ATM withdrawals at your banks ATM. Making withdrawals at other banks we cause you to pay additional fees.
10. This one CAN hurt your your credit score, but if you are tempted to spend more than you make, canceling your credit cards may be the way to go.
11. Increase the number of dependents you claim on your W-2 forms (Watch out! This could cause you to owe on your taxes at the end of the year).   
12. Learn how to start a budget and stay with it.
13. See if you qualify for assistance from a local food bank or other charity.
14. Keep your extra cash in a money market where you can earn extra interest.
15. Apply for public assistance if you lose your job or are disabled. This money may not be enough to pay all your expenses, but it will at least put food on your table.
16. Do not take cash advances on your credit cards. This is just a high interest loan.
17. Raise the deductible on you car insurance or reduce the amount of coverage you have.
18. Block texting on you cell phone. Texting can really add to your cell phone bill.
19. Cancel your cable service, or reduce the number of premium channels you pay for.
20. Sell things on Ebay or on Craigslist.    

This is just the tip of the iceberg. Once you get started with these tips, finding cash will begin to snowball.

(photo via The Smarter Wallet)

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Tempted to Go Back To My Old Spending Habits

The recession has definitely put my spending habits back in check. After my divorce and before the economic boom I was debt free, had a six month emergency savings, and was saving 15% of my pay. I won't be able to do all that again until our massive six figures of debt is paid back in full. But I am not only one thinking this way.

"According to recent a Citigroup survey, 52% of consumers say the recession has "forever changed" the way they spend and save, but that's down from 63% when the same survey was conducted a year ago."

As you can see these numbers are shifting back to the old ways. On one side this is good for the economy, but not good for consumers financial future's. My wife and I have a monthly budget of $100 each for clothes, shoes, etc., but I never have really utilize my share, until this weekend that is. I have been going for months with blessed clothes. Yes, we are extremely blessed for all that we have, but my clothes are not exactly blessed...more like holy. As in getting hole's in them.

The soles of my shoes were cracked, my socks and underwear are getting embarrassing holes in them and I thought it was time to use my $100 clothing allowance. So, I bought a new pair of shoes and socks. I threw out my old underwear and socks too, but I still have enough underwear that is in in good shape and as not to go over budget, I didn'y buy new ones just yet, I will wait until next month and probably throw in some new t-shirts while I am at it.

It felt good to spend again. I really could keep doing it again and again, but I am determined to stay within budget and not to overspend. So, as i said earlier, others are feeling the same way.

"The fear of getting fired or not being able to find another receding, at the same time you are noticing that you have holes in your socks and your car is old and you are no where near your credit card limit and your savings has grown," says Lakshman Achuthan, managing director of the Economic Cycle Research Institute."     

If that savings account that you have been growing steadily has been burning a hole in your pocket, stick to your guns. Don't deprive yourself of your needs, but remember the difference between your needs and your wants. Because nothing you buy feels as good as being debt free and having money in your pocket.

(via CNNMoney.com)

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7 Money Rules Everyone Should Live By

With the economy ever changing since the beginning of our disastrous recession, we have all had to find ways to adapt to keep our finances a float. Here's 7 money rules that everyone should remember with adjustments for the new economy:

1. Save at least 15% (20% would be even better) of your income - It used to be 10% for the longest time, but this is quickly becoming old school. With people no longer having pensions to look forward too, shorter retirement periods, better market retirements returns, or even social security it is now more important to save then ever. The more you save the better.
2. Keep your debt to income ratio below 30% - The old school number was 36%. Dropping that number an additional 6% gives you more cash flow to put towards your emergency fund and retirement saving.
3. Invest less in stock - Don't invest more than 5% of your portfolio in company stock. The old way was 10%, but it's safer to diversify.
4. Determine how big your nest egg needs to be - Figure out how big your nest egg needs to be by multiplying your ideal annual income by 30. This is 5% higher now because people are living longer.
5. Only refinance if interest rates are one percentage point lower than your current rate - Do the math and determine how long you plan to live in the house. It will usually take a few years to make up what you will have to pay in closing costs.
6. Keep your discretionary spending under 20% - This includes items like clothes, dining out, or going to the movies. The rule used to be 30%, but with debt going up you need that extra money to pay it down.
7. Figure out how much of your portfolio should be in stocks - Use this formula 110- Your Age = In Stocks %. Subtracting 100 from your age was the way to go, but with rising medical costs and people living longer 110 is safer. Try 120 if you really want to be safe.     

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How Will Having a Budget Help me Get Out of Debt?

A budget is an active strategy you can use on a daily basis to control your spending habits so you can meet your financial goals. You need to make a commitment to yourself, "To live like no one else. So you can live like no one else." or "I want to save more money so I can be debt free and invest for a better life and be financially independent." When you start your budget, it will help you separate your needs from your wants. Here are some ways a budget will help you get out of debt:

• It will help you plan and prepare for major expenses like a new car and will help you eliminate the unnecessary things you might otherwise buy if you didn't have a budget.
• You will be able to put more more money towards your debt and eventually into your savings to start investing. It will set groundwork for developing a financial plan and set you on your path to financial freedom.
• It will help you get used to living on what you make and helps you, your spouse and children to all be moving in the same financial direction.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).] Did you enjoy reading this article? You can receive free full-text articles from Financial Elite by RSS in your email inbox daily by entering your email HERE. Your  email will only be used for this daily subscription, and each email will include a link you may use to unsubscribe at any time. Also follow us on Twitter.

What are Some Painless Ways I Can Save More Money?

People usually have no problem spending money, but saving money is a whole different story. It's kind of like when you want to lose weight, but just like there are ways to cut back on calories, there are a few things you can do to make saving money relatively painless.

1. Whenever you get a raise, deposit the extra money you make directly into your savings account so you don't miss it. It is very tempting to spend the extra money, but don't give yourself a chance to spend it. Set yourself up on direct deposit right away and have the amount of your raise put away.
2. Brown bag your lunch. Taking your lunch to work instead of eating out will save you anywhere from $5 to $10 a day. That could be a $100 or more a month.
3. If you don't have debt, put your tax return in your savings account. However, if you do have debt, slap that refund down on your credit cards. 
4. Deposit any overtime pay, bonus or part-time job money into your saving account.
5. Pay cash for everything. You will spend less if you pay cash over using your debit or credit cards. It hurts to spend cash. Swiping plastic doesn't. Ditch the cards.
6. Put in your budget a savings plan for big purchase items like a new car. The more you put down the less your payment will be. Not to mention the money you will save in interest. Even better, save enough money to pay cash for your car.   

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).] Did you enjoy reading this article? You can receive free full-text articles from Financial Elite by RSS in your email inbox daily by entering your email HERE. Your  email will only be used for this daily subscription, and each email will include a link you may use to unsubscribe at any time. Also follow us on Twitter.

Having Your Retirement and Eating it Too

Day 271 of my Financial Freedom Countdown

One of the most frustrating things for me when in debt is not contributing to my retirement. When my debt started to really stockpile I began cutting back on my retirement savings. For one I couldn't afford to put anything extra aside and two I thought it better to pay down my credit card debt. So should you stop contributing to your retirement just because you are in debt? The answer might just be no.

If you work for a company that has a 401K and matches your contribution, it doesn't matter how bad your finances are or how much credit card debt you have. Do not miss out on this company match.

Any match your company offers is like free money. Generally, most employers will match anywhere from three to six percent of your contribution dollar for dollar. This is too good a deal to pass up. So don't.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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CreditCards.com Interviews the Author of Financial Elite

Day 269 of my Financial Freedom Countdown

I was reading the article QA with Lynette Khalfani-Cox and in the interview with CreditCards.com Lynettee discusses how she paid off six figures of debt in three years. In case you didn't know Lynette is a former Wall Street Journal and CNBC reporter and is now a money coach and financial expert for Oprah Winfrey, Fox Business, Dr. Phil, and CNN.

In the interview Lynette reveals that despite making a six figure income salary she still racked up six figures in credit card debt. The good news is she paid it all off in three years.

Her story is very much like my own. I racked up six figures of credit card debt while making a six figure salary and although Lynette paid her debt off in three years, I have a five year plan and would love to knock it in three just like she did. Anyway I was thinking what it would be like if CreditCards.com was interviewing me and what I would say.

CreditCards.com: Tell me, what do you blog about?

FinancialElite.com: I blog about personal finance. My intent is to motivate people to get out of debt, encourage them to manage their credit and debt wisely. I discuss all kinds of topics, from investing and real estate, to saving money and budgeting. Credit and debt are my two favorite topics because I have struggled in those areas. Not only once, but twice. So many people struggle in these areas all their lives.

CreditCards.com: In your blog "Financial Elite," you share with people your struggles with debt and your financial troubles. Why?

FinancialElite.com: Being in debt sucks. I am trying to show people that there are a lot of people in debt and you know what? You can pay it off.  It's easy to get in debt, but it's hard to get out. It's just like losing and gaining weight. You have to exercise and eat right to keep in shape. When you are in debt you need to find ways to spend less and usually make more money along with it. But you can do it if you work at it.

CreditCards.com: You made over six figures, but still ended up with $100,000 of debt. What happened?

Financialelite.com: People get into debt for many reasons. Some stroke of bad luck is often a cause -- laid off, getting divorced, becoming disabled, death of a spouse.

The rest tend to be overspenders or were never taught any money managements skills. I think I was a combination of a lot of things. Having a finance degree and working in the financial industry, I had a lot of knowledge on how to manage money. My first wife was an overspender and I got caught up in the vacations, treating people to dinner, buying expensive gifts for friends and relatives that we couldn't afford. The thing is the first time I was six figures in debt I was only making about $40,000 a year.

When we divorced I decided to use what I know and get things under control. I had just under $100,000 of debt and I was determined to payoff every penny. I got a second  job, sold things like CDs, sold my furniture, sold parts of my toy collection, and donated tons of stuff.

Things had almost immediately turned around for me once I decided that I needed to get rid of this debt. I had basic cable, a dial up modem, wore clothes that were to big for me (I started getting myself into shape not only physically, but financially as well).

CreditCards.com: So it was hitting rock bottom that made you say, "I need to change this?" You were divorced during the time you were paying off the debt, so it must have been difficult.

FinancialElite.com: Lots of consumers have debt problems after a divorce, but in my case I always felt it was my marriage that led to the debt problem. I never put my foot down hard enough to put a stop to the spending that was ultimately the problem, but getting divorced began the turn around. I will never tell someone to get divorced to fix their financial problems. Marriage needs to worked on just like your finances. I never asked for the divorce, but I may never have gotten a grip on my finances if I hadn't.

I also started to get cut off from my creditors at that time too. My cards were maxed and out and I would try to get my interest rates lowered and the credits were coming back not only raising my interest rates in some instances, but quite often they would close my accounts as well.

The bottom line was I hated the debt. I used think of all the stuff I could be doing if I didn't have all these payments.  I wouldn't have to worry if I was going to have to file bankruptcy or not. My biggest fear was being late on a payment, which is the one thing I was proud about, I was never ever late on any payment to anyone.

CreditCards.com: Paying off $100,00 in credit card debt in five years may seem impossible to some people. How did you do it?

FinancialElite.com: It wasn't like I miraculously got out of debt. It was through perseverance and working on it diligently that made the difference.

Like I was saying earlier, I revamped the spending habits I developed with my ex-wife and stop all frivolous spending. I stopped eating out and did with out as much as I could.

Negotiating with creditors didn't work that well the first time around with six figures of debt. This time it has been great. Many of my creditors have lowered my interest rates as low 0.00%. I also put every bit of extra cash I received towards the debt. It may have been a bonus at work, a tax return, a gift of cash, or even saved up spare change. Anything extra went towards the debt. Paying only the minimums on the credit cards was getting no where fast and I knew the more I paid the sooner I would get them paid off.

As the economy improved in 2002 so did my income. I started paying more and more towards my credit card debt. As one would get paid off, I would start working on another. Soon I had a run away debt snowball and the balances really came down fast.

I had some stock options that had finally become worth a descent amount and I cashed them out and put them towards my remaining debt. After five years of chipping away at my debt every single penny had been paid back.

CreditCards.com: If someone is reading this and feeling overwhelmed, what is your advice?

FinancialElite.com: Keep the faith. Most people have less debt than I have and I paid off six figures of debt once and I am working on doing it again. I have another five year plan and I am almost through the first year. I know it is tough, but it does get better. Since starting my five year plan I am beginning to see the same results this second time around that I had seen the first time. Things do get better in time.

Having debt doesn't mean you are a failure. Your life isn't over because you are in this hole. Everybody faces a tough time and it is always darkest before the dawn.

The main thing I want people to get out of this is, you can do it! I have done this once and I am doing it again. Make a plan and keep working on it. If you keep chipping away at the debt, you will dig yourself out of the hole.

I said I would never be in that kind of debt again, but it did happen again. I am not filing bankruptcy, I am not going to lose my home, and I am not going to default on any of my debt. I am going to pay back every penny and once again have financial freedom. The only thin I am going to lose is my debt.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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Should I have a Separate Checking and Savings Accounts?

Yes, you should have a separate checking and savings account. A checking account is for paying bills or purchasing things. A saving account is for well, saving.

I definitely think it's important to have a separate saving account when it comes to your emergency fund. When the money that is intended for your emergency fund is in your checking account, it is very tempting to tap into that money and spend it. When the money intended for bills and such is used up, you know you are out of money and you have reached your spending boundary.

Money market accounts allow you to write you to write up to 3 checks a month, but regular savings accounts allow you to make a withdrawal only. I feel your savings account should have check writing abilities. It gives you one additional option to get money from your emergency fund to cover, you guessed it, an emergency.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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How to Raise Financially Smart Kids

As I was coming up with this next post, with my daughter crawling on the floor right next to me, I thought to myself I don't want my daughter to make the same mistakes I did. Money management is passed on from generation to generation. Sometimes good money management skills and sometimes bad. I think mostly bad.

I actually consider myself a "financial expert," although I have gotten myself in a financial jam of over six figures of debt more than once. In the past, I have spent more than I earned, racked up the before mentioned six figures of credit card debt, and had taken money out of my 401(k) (both as a loan and actual withdrawal). Even though my daughter is less than one year old, I still want her growing up with the knowledge that she should live below her means, save fifteen percent of her income, and meet her financial goals.

I feel basic money management should be a requirement in school, though many U.S. schools don't teach it at all. Right now the only was you can insure your children learn essential money skills is to teach them at home. Jean Chatzky, author of "Not Your Parents' Money Book: Making, Saving and Spending Your Own Money (Simon & Shuster) offers these five tips for raising financially money smart kids.

1. Give children money to manage. To build a sense of real world prices and values, give your kids some money and let them decide how to use it.
2. Offer incentives for saving. Decide how you want to reward your child for setting and achieving a savings goal, whether for an iPod or college.
3. Strongly encourage work. When it's earned money, a night of ice skating isn't just half of their allowance - it's two hours of work.
4. Talk about money. It doesn't have to mean sharing your salary, but it should include discussing the cost of things like dinner out, vacations and college, and which things are family priorities.
5.  Let them fail. Children, much like adults, need to learn: Only by carefully considering how to make the most of our money will we, and they, make the right decisions with it - at least most of the time.   

Remember debt management starts at home. Just like good eating habits, it's best to start teaching your children financial responsibility as soon as possible.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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So What if I Don't Have Money Set Aside in Savings?

If you don't have money set aside in a minimum of $1,000 emergency fund, you need to get serious right now on how to start saving. There is no doubt about it, you must build up a savings reserve. Start getting creative on ways you and your family can reduce your expenses or even increase your income so you have money in case the need arises. DO NOT depend on your credit cards as a savings device. The only true savings is one that is cash. There is nothing more important then your family itself than having an emergency fund of $1,000 and building it up to 6 to 8 months of income.

(photo via credit.com)

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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Quick Financial Tip of the Day 08.16.10

Can I convert my my Roth IRA to a Traditional IRA?

As of this year in 2010, anyone can roll over a traditional IRA or 401k into a Roth IRA regardless of your income. If you make the conversion in 2010, any taxes due with the conversion can be paid over two years. Any conversions made after 2010 have to be paid in the same year.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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7 Tips to Save Money with Your Natural Gas Dryer

Putting our utilities on a balanced payment plan has done wonders with our budget. Knowing exactly what our payments are going to be on all our financial accounts make it a breeze to calculate just how much money we are spending each month. Even though we have our budget in full swing and we are chipping away at our debt, we are constantly looking for ways to reduce our spending and costs.

Our utilities are on a fixed payment plan at the moment, but they are based on the average bills over the past concurrent 12 months and re-evaluated each year. So our goal is to strive to find ways to continue to lower our utility bills consistently before the next calculation occurs. One of the best ways to keep your utility bills at their lowest is to keep your electronic and gas appliances in tip top shape and keep them running at peak performance. I am always looking on ways to keep our vehicles and appliances running efficiently. Today were going to start with natural gas dryers. 

Today's natural gas dryers are designed for efficiency. Using new technologies, natural gas dryers offer you improved performance and reduced cost. Our dryer, which you will also find on newer models, uses an electronic moisture sensor that measures the amount of moisture the amount of moisture in the clothes. When the degree of dryness selected is reached, the dryer automatically shuts off. This saves energy and reduces wear and tear on your clothes.

Here Are Seven Dryer Efficiency Tips:

1. Clean the lint filter after each load. Lint buildup reduces air-flow and dryer performance, driving up your energy usage.
2. Clean exhaust duct work, vent and the hood cover (outside the house) periodically.
3. Dry full loads, but do not overload. Clothes need to tumble and air needs to circulate freely.
4. Over-drying wastes energy energy and most fabrics need natural moisture.
5. Read garment and fabric care labels for proper settings. Separate lightweight and heavy clothes for more energy efficient drying.
6. When dryer is in operation, do not open the door unnecessarily.
7. Use no heat cycle to plumb pillows, freshen stored items, and remove lint or dust from drapes and spreads.  

Send us your tips on frugality with your appliances. Not only is sharing information on how to save money with utilities good for our wallets, it's great for the planet.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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Time is Not on Your Side When it Comes to Savings

The sooner you start saving for retirement the better. Someone who starts saving say $100 a month for retirement at age 20 will be further ahead then someone who saves $200 a month at age 40.

Both my wife and my own retirement and savings accounts have been raided the past few years from our many financial mistakes and the never ending recession and since time is not on your side when starting late on building your retirement fund I am eager to get the accounts replenished.

Now don't get me wrong, but it is never too late to start saving for retirement no matter how old you are. With us however, we are currently on Dave Ramsey's baby step 2, which is pay off all your debt using the debt snowball, and us returning to a savings plan needs to come after we pay off all our debts and have a fully funded emergency fund. When you have no debts and a fully funded emergency fund to work with, you will be able save for retirement much easier.

When you are ready start baby step 4 and build your retirement nest egg you will find many investment options to choose from. Some of the most common are:

• Traditional IRAs
• Roth IRAs
• 401(k)s
• 403(b)s
• SEPPs

Each of these mediums have limits to them such as, the amount you can deposit to each them every year, the amount you can withdrawal from them, and the amount you can make in order to use them.

As I said early it is never too late to start saving for retirement. If you are starting late, you will just have to be more diligent about investing.

If you are pushing 60 and have no debt then you need to make saving for retirement your first priority. You probably won't be able to retire at 65, but you can have a pretty descent retirement fund built up in no time if you really work at it. But remember you need to make sure you are debt free and have 3 to 6 months of expenses in an emergency fund.

Even if you are in your forties, and you and your spouse fully fund your Roth IRAs every year, you can potentially have a $1 million tax free so you can retire at 65.

If you are a business owner like me a SEPP (Simplified Employee Pension Plan) can be an excellent way for a small business owner to save 15 percent of income each year. The other plus to this is the money that is put in these accounts is tax deductible. If you make less than $150,000 a year, it is possible to max out an Roth IRA first and it is tax free to boot. After that contribute to the SEPP.

Like I was saying a Roth IRA is completely tax free. It doesn't matter if you save millions in a Roth the money is all yours. If you save the same amount in a 401(k) it will end up costing you about a quarter of the saved amount in taxes. In the long run the Roth is best way to go, but if your employer offers a company match then the 401(k) is the way to go.

Remember there is no best way to get rich quick. You need to get rich slowly. Perseverance wins when it comes to building wealth. True wealth building takes time. Unfortunately, time is not on your side. Get started as soon as you're debt free. Otherwise, I hear dog food is cheaper than human food. Yum! 

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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Getting the Budget Under Control: Six Steps to Managing an Envelope System.

My wife and I are getting ready to get our budget ready for August. Every time we balance the budget I tend to get frustrated because it seems like we just don't have any extra money. We have our $1,000 emergency fund in place and the majority of our debts are on balance liquidation programs and all are being paid as agreed, but I feel we should have some sort of extra funds either to slap more towards our credit cards or so I don't worry we don't have enough money even though we have an emergency fund. So, I think it's time to start an envelope system to enhance the budget.

What is an envelope system? An envelope system is a great tool to organize your finances and keep your spending under control. If you are on a budget like us and are still over spending, an envelope system may be the way to go.

Here are six ways to manage a cash envelope system:

1. Figure your paycheck into your budget - Most people cringe at the word budget, but budget is what you must do right down to the penny if you are going to successfully use an envelope system.
2. Figure what bills can be paid with cash - Some bills you just won't be able to pay in cash. If you have payments set up on automatic payment that would be one example. You can however, have envelopes for gas, groceries, clothes and entertainment.
3. Hey, there's money in this envelope! - After you have calculated your expenses, fill each envelope with the cash you have allotted for each budgeted item. If you have $100 budgeted for groceries each week, put $100 in the envelope for groceries.
4. Where did all the money go? - Once all the cash in the envelope is gone, it's gone. You are done with that category for the month or week, depending how you have to divide your paycheck. If you have a $100 budget  for clothes and you spend it all, guess what? You are done with the clothing budget for the month. You have to wait until next month to re-budget for that category. No cheating!
5. Behind me Satan! - Don't be tempted to over spend. There is a psychological reaction that occurs when we spend cash. It doesn't hurt using a credit card or debit card the same way it does with cash. Work towards using cash whenever possible. You will be less likely to over spend.
6. Good things come to those who wait - Just like your overall budget, your envelope system will take a few months to get the bugs out. Once you get it down it will be riding a bike. Once you start seeing your debt melt like butter, you'll want to keep going.    

You will most likely need to base your categories around payment due dates and pay periods. So, if you are paid twice a month, you will have to determine what bills are getting paid from each check. By spending each check on paper you won't have any surprise bills. If you are having a hard time balancing your budget give the envelope system a try...All you have to lose is your debt.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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I Have Plenty of Time to Start Saving

Actually, you don't. If you are not worried about saving right now, you better be. Things might be alright now and you may be getting by, but what happens when you turn 65 and should be retiring. You need to get out of debt and start putting money aside. Not only for emergencies, but for your retirement, and money aside to buy and replace your car. Where there is no savings there is generally debt. Having money in savings helps alleviate stress because you don't have to worry when the next shoe is going to drop.

You need to get on this right away. What would you do if you were in an accident or your car broke down right now, would you be able to buy a new car? They say social security is going away, how will you retire? Millions of people are losing their jobs right now, would you be able to pay your bills if you were laid off?

As long as you have credit card debt and as long as you keep spending money you will be living pay check to pay check and you will be broke. If you get your accounts paid off and quit spending on your wants, you will have money to save.

You need to take a stand and say, "I am sick and tired of being sick and tired!" Do not fall into conformity's grip and be like everyone else. Try something different for a change and live like others can't. All you have to lose is your debt.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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So You Think You Are Ready to Buy a House: 4 Must Do's

I was reminiscing today about how easy it seemed to buy a home just a few short years ago. Just eight years ago I was a loan officer and I remember when the guidelines began to loosen up and how people just a few months prior would have never qualified for a mortgage with their financial situation, but did. It was an easiness that was just too easy. An easiness that should never have happened.

Although the current economic situation is certainly not helping the housing market these days, I think things have reached a point necessary to put things right again in the financial world. Do I dare say this, but I am going to...things should be a little more strict.

Now I am not saying that I am a Saint by any means. I fell into the trap of easy lending myself, but had I followed what I believed when this economic meltdown began, I probably wouldn't be in the middle of my own financial crisis.

Here are a few guidelines I suggest you follow when buying a home:

1. Do not buy a home until you have an emergency fund in place and are debt free aside from your new mortgage.
2. It is best to only have a 15 year mortgage.
3. Put down 20 percent to avoid the cost of PMI (Private Mortgage Insurance).
4. Your mortgage payment should never exceed 25 percent of your take home pay. Lenders  will generally go up to 31 percent, but I say go a little lower. It is the best way to stay out of trouble. 

Even if your able to take advantage of the current low interest rates don't push your finances to the limit. Having a buffer is best. You'll thank me later for it.

If you are newly married there really is no reason for jumping into purchasing a home either. My first wife and I bought I home shortly after we were engaged and moved in the home before we were married. My second wife and got engaged the night we moved in our first home together. I guarantee it is worth the wait. Spend a year or so together first building equity with each other before you try and build equity in a home.

If you think buying a home with your boyfriend or girlfriend is any better think again. Don't buy a home with someone you are not married to. If the relationship goes South it can ruin you financially, legally, and spiritually. You would be better off buying the home on your own.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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Ways to Reduce Energy Demand During Severe "Hot" Days

It's a no brainer, but Summer weather affects energy bills. We have our utilities on an equal payment plan, which helps maintain our budget since utility bills usually do fluctuate during the different seasons, but that doesn't mean we still can't take action to help reduce energy consumption.

During the summer months extreme temperatures stress the electrical grid. You can help yourself and others by taking small actions, which not only help the grid, but the environment.

1. Know Your Thermostat Settings - Set your thermostat setting to 78 degrees during occupied periods and set it up to 82 degrees during unoccupied periods.
2. Keep the Sun Out - Keep blinds and window coverings down to block out the sun to help reduce cooling loads.
3. Close Doors and Windows - Keep all doors and windows closed to keep the cool/conditioned air in.    
4. Turn Off Lights and Appliances - Turn off lights, TVs or other appliances, when not in use.
5. Optimize Computer Energy Settings - Every computer has energy settings that will put the machine into sleep mode if not used for a certain time period. Using these settings to shut off the monitor or put the computer into sleep mode can really help lighten the electric load. 
6. Shutdown Your Computer Monitor When Not in Use -  Turning off your computer monitor can save you up to $20 a year.
7. Unplug Devices Not in Use - That printer that you used last Wednesday that is still plugged in is actually sucking electricity, even though you aren't using it. 
8. More Best Practices 

• Consider running the dishwasher and the washer and dryer during the evening when it is cooler.
• Using fans instead of the air conditioner. Fans help a room feel up to 15 degrees cooler.
• Stay indoors during peak heat times to stay cool. 

These tips will help cut back on your electric usage and help save money on your electric bill in the long run. Just think, you can put the extra money you save towards your debt. Give it a try...all you have to lose is your debt.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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• What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?

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11 Ways to Make Your Finances Stress Less

If you are feeling stressed about your finances these days -- Your not alone.

Seems like everyone is being pushed to their limits these days with credit cards being maxed out, people in fear of losing their jobs, or even losing their homes to foreclosure, and being stressed does not help any of those situations. Stress could lead to making rash or illogical decisions instead of doing what is right.

Here are eleven tips to help you and your family manage tension and think with a clear head during these difficult times.

1. NURTURE GOOD CONNECTIONS with those you care about, and who are supportive and comforting to you.
2. STAY FOCUSED on your regular work and home activities.Routines are especially calming and reassuring to children.
3. LIMIT YOUR INTAKE OF THE NEWS and be aware of how disturbing such programs may be to children.
4. GIVE GUIDANCE, SUPPORT AND REASSURANCE to the vulnerable people people in your life, especially children, even if you don't always feel it yourself.
5. DO SOMETHING PLEASANT AND ENJOYABLE EVERY DAY to revitalize energy, expand problem-solving skills and strengthen your personal resiliency.
6. PROVIDE SUPPORT TO OTHERS because there is always someone who is less fortunate than you are.
7. STAY IN TOUCH WITH SOURCES OF SPIRITUAL STRENGTH AND RENEWAL, such as nature, prayer, yoga and meditation.
8. BE GOOD TO YOURSELF be exercising, eating healthy food and getting enough sleep.
9. AVOID EXCESSIVE USE of alcohol, tobacco or drugs
10. GIVE YOURSELF PERMISSION to feel and grieve the losses of others.
11. MONITOR FEELINGS OF HELPLESSNESS OR LOSS OF CONTROL and seek professional help if you need it.    

These are some of the routines I have incorporated into my "It's a Wonderful Financial Life" project and helps so much.

How do you cope with the stress of your finances, like debt and savings?

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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• Should I Take Out a 401K Loan to Pay Off My Credit Cards? 

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Is the U.S. the World's Only Hope of Restoring the World Economy?

From Los Angeles Times: U.S. once again cast as world's consumer of last resort

 [A]mericans are once more being cast as the world's consumers of last resort.

If U.S. consumers can abstain from a "shop till you drop" lifestyle, their savings rate will grow and their debt loads will shrink. Those trends could strengthen the country's long-term economic health but also could
cause more short-term pain in the form of slower job and wage growth.

[O]bama has called for remaking the American economy so it produces, exports and saves more while borrowing and consuming less. He pledged to double American exports in five years.

I know we need to spend to get the economy going again, but we need to find a way to do it with out using our credit cards and creating debt.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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• Should I Take Out a 401K Loan to Pay Off My Credit Cards? 

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Are You Sick of Getting Nickle and Dimed to Death?

CNNMoney.com has done a story about the 15 most hated fees and how to avoid them. They are taking polls and breaking down the various least favorite surcharges. I thought we'd take a look at these and offer our opinion on the pesky charges.

Here's a look at their first group:

• Being Charged Overdrafts from your savings: Banks charge $10 to $20 every time they transfer your money between your checking and savings account and you can end up paying as much $30 according to Bankrate.com.
• Paying to use your frequent-flyer miles: Redeeming your miles on U.S. Airways, for example, costs $25 to $50.
• Laying out who knows how much in annuity fees: If you buy a variable annuity, the fees are disclosed in the prospectus. To find them, however, you'll have to comb through hundreds of pages and do some mathematical heavy lifting. 

Here's what we think you should do about them:

Hate forking over new charges for overdrafts? Balance your checkbook. Keeping your checkbook tuned up will keep you from overdrawing your checking account.

The fees charged for essentially conducting an automatic transfer are still cheaper than the overdraft fees banks charge. Bank of America will whack with a $35 charge if you didn't balance your register properly and overdraw your account.

So how can you avoid any of these fees? Go to to you banks website or Mint.com and try to automate your finances. You can sign up for text banking and receive text messages or emails when your account runs low. That way you can transfer money yourself before the overdraft fees hit.

Hate paying to use your frequent-flyer miles? Quit using that type of credit card. Heck quit using your credit cards at all if you are in debt. You only end up spending more by using credit cards. When you pay with cash you feel a bit of separation anxiety. But the opposite happens when you use credit cards. Using your credit card does not hurt  you emotionally. By using plastic over cash you will spend 12 percent to 18 percent more. This is money that could have gone towards debt or savings.

The best plastic to use is debt cards. You can use them for travel and for ordering something over the phone or the Internet. The next best thing to debit cards is cash.

Get rid of your habits that cause you to spend more. The credit card industry is a multi-billion dollar industry and if you think you can bet them at their own game you are sadly mistaken. You can't beat them, so don't join them.

Laying out too much in annuity fees?  I admit that I am not really knowledgeable on the subject of annuities, but according to Allan Roth, a financial planner in Colorado Springs, "variable annuities rarely make sense," because of the high fees. A lower cost immediate annuity is probably better. If you already have a variable annuity check out the surrender charges, which run as high as 10%, before switching.

What are your most hated fees? Sound off let's hear from you.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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• Should I Use My 401K to Pay Off My Mortgage?
• Should I Take Out a 401K Loan to Pay Off My Credit Cards? 

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