Suze Orman will be on Oprah today as part of Oprah's Best Life series. She will be talking about how to best deal with the financially hard times we are experiencing. Orman is well known for her sound financial advice and clear-headed ways of thinking.
She also has an ebook that can be downloaded for free on the Oprah Winfrey website. Download Orman's 2009 Action Plan here.
Thursday, January 8, 2009
Wednesday, January 7, 2009
The Smart Planner
I'm being featured today on a great blog called The Smart Planner. Liene Stevens is the founder of this blog that focuses on helping wedding planners build their businesses in a purposeful and logical way. It is already obvious that Liene has made a difference in the wedding planning industry. Even if you are not a wedding planner, you can still gain some great insight on leadership and managament from this blog and also her unique Twitter series.
I will occassionaly make guest appearances on The Smart Planner and will gear my posts toward helping planners make the best financial decisions as they grow their businesses. Check out my post today about the advantages of using QuickBooks software to manage the financial aspects of your business.
I will occassionaly make guest appearances on The Smart Planner and will gear my posts toward helping planners make the best financial decisions as they grow their businesses. Check out my post today about the advantages of using QuickBooks software to manage the financial aspects of your business.
Twitter Series
If you are a Twitter user, be sure to look for a short series of tweets called $Money Talks$. I will be featuring some interesting quotations from some popular financial gurus. Follow me at www.twitter.com/timgill.
Tuesday, January 6, 2009
$$ for your old ink cartridges
You may already be familiar with Office Max's incentive program MaxPerks. If not, it's basically a card you swipe with every purchase and you receive 5% back to spend on more office supplies. (The shopping list is always endless, right?) Occasionally, they will offer up to 25% back on certain brands or items. If this isn't worth it, the valuable coupons they send out definitely seal the deal.
Also, I found out the other day that for every empty ink or toner cartridge you turn in at the store, they put a $3 credit on your reward balance. You can turn in up to ten cartridges a week. This can really add up over time - especially if you have access to some cartridges from the office or elsewhere that are getting thrown away anyway.
Also, I found out the other day that for every empty ink or toner cartridge you turn in at the store, they put a $3 credit on your reward balance. You can turn in up to ten cartridges a week. This can really add up over time - especially if you have access to some cartridges from the office or elsewhere that are getting thrown away anyway.
Monday, January 5, 2009
The Emergency Fund
Upon completion of putting together your household budget and taking a close analysis of your financial situation, build up an emergency fund. Or, as Dave likes to call it, the "rainy day" fund.
A well-funded emergency fund will cover expenses of anywhere between three and six months of living. Depending on how much job security you have or how difficult it would be for you to obtain a new job, you may want to adjust your goal accordingly.
It will definitely take time to fully fund this account, but I recommend you make a goal of saving up $1000 as fast as you can to get the ball rolling. For some, this may be easy as you already have at least that much in the bank. For others, you may have never had that much money to your name - ever. Well, it is possible, and after doing so I trust you will have the motivation and momentum to keep saving more.
Do whatever it takes to save up this money. Get a second job. Sell stuff on eBay or on Craigslist. Shovel sidewalks. Deliver newspapers. Babysit. Clean houses. Anything.
Once you have your $1000, put it in a place that is accessible, but not too tempting to take advantage of.
Now the big question - What counts as an emergency?
Only use your emergency fund for unexpected occurrences that you cannot plan for.
Examples: an unexpected pregnancy, you suddenly lose your job, you blow the engine on your car, an emergency room visit, the furnace breaks down.
Examples of non-emergencies: routine car maintenance (oil change, new tires, new belts, etc.), your TV broke, a 75% off clearance sale at Banana Republic, an annual doctor visit, the need for new furniture, craving a mocha frappuccino, you get the idea...
Once you reach your $1000 goal, you can smile big for a day, but the battle is just beginning. After that, it's time to tackle that debt of yours and continue to fully fund the emergency account. Please feel free to share any ideas you have on how to build up your $1000.
A well-funded emergency fund will cover expenses of anywhere between three and six months of living. Depending on how much job security you have or how difficult it would be for you to obtain a new job, you may want to adjust your goal accordingly.
It will definitely take time to fully fund this account, but I recommend you make a goal of saving up $1000 as fast as you can to get the ball rolling. For some, this may be easy as you already have at least that much in the bank. For others, you may have never had that much money to your name - ever. Well, it is possible, and after doing so I trust you will have the motivation and momentum to keep saving more.
Do whatever it takes to save up this money. Get a second job. Sell stuff on eBay or on Craigslist. Shovel sidewalks. Deliver newspapers. Babysit. Clean houses. Anything.
Once you have your $1000, put it in a place that is accessible, but not too tempting to take advantage of.
Now the big question - What counts as an emergency?
Only use your emergency fund for unexpected occurrences that you cannot plan for.
Examples: an unexpected pregnancy, you suddenly lose your job, you blow the engine on your car, an emergency room visit, the furnace breaks down.
Examples of non-emergencies: routine car maintenance (oil change, new tires, new belts, etc.), your TV broke, a 75% off clearance sale at Banana Republic, an annual doctor visit, the need for new furniture, craving a mocha frappuccino, you get the idea...
Once you reach your $1000 goal, you can smile big for a day, but the battle is just beginning. After that, it's time to tackle that debt of yours and continue to fully fund the emergency account. Please feel free to share any ideas you have on how to build up your $1000.
Saturday, January 3, 2009
First Things First - Start with a Budget
If you're going to work at getting out of debt, you need to take a very serious and precise approach to the way you handle your money. Consider what you own, what you owe, and what you spend.
The key to creating a budget that makes sense is to assign every dollar you make to a specific category. Some categories are straight forward, such as a grocery budget. Every week you put aside a specific amount for food and each week you spend that amount. Other categories, such as automobile expenses can vary each week or month. Even though you change the oil in the car every three months, you should still put aside 1/3 of that cost each month. Perhaps you pay a life insurance premium annually. Be consistent in putting aside 1/12 of that amount each month.
Always remember, if an expense is expected, it is not an emergency. Plan ahead and you won't be caught off guard with these expenses. Any money that may be left over at the end of your budget, put toward an emergency fund until you have at least $1,000 on hand just in case the unexpected does happen. This could be an emergency room visit or perhaps the need for a new furnace.
You may fill out your entire budget and come to realize your spending outweighs your income. This is a serious problem, especially if it continues for a number of months. This issue must be addressed as soon as possible. Analyze the situation. Can you cut back on entertainment and eating out? I think so. Is your mortgage over 25% of your income? Maybe it's time to move to a smaller house.
On the other hand, how can you raise the top line? Can you work a second job? Deliver pizzas? Sell stuff on eBay? Plainly stated, if your expenses are more than your income, you need to either make more money or start spending less. It's that simple. The rest comes down to creativity.
I do not intend to sound unsympathetic. I understand people have all sorts of different financial situations. But, financial freedom IS possible. We have the privilege of living in a country where opportunity is boundless. If you feel so overwhelmed with the debt on your plate, that you have no idea what to do, contact a financial advisor who can look at your situation and help you out on a one-on-one basis. If you are in this situation, now is not the time to be investing money in the stock market or saving for your kid's college fund. It's time to prioritize and eliminate this debt one dollar at a time.
Use this form from Dave Ramsey to help you keep track of your monthly cash flow. Remember, the bottom number should be ZERO. Have a plan for EVERY dollar you make.
Next time, I'll go into a little more detail about the emergency fund and why you want to have it.
The key to creating a budget that makes sense is to assign every dollar you make to a specific category. Some categories are straight forward, such as a grocery budget. Every week you put aside a specific amount for food and each week you spend that amount. Other categories, such as automobile expenses can vary each week or month. Even though you change the oil in the car every three months, you should still put aside 1/3 of that cost each month. Perhaps you pay a life insurance premium annually. Be consistent in putting aside 1/12 of that amount each month.
Always remember, if an expense is expected, it is not an emergency. Plan ahead and you won't be caught off guard with these expenses. Any money that may be left over at the end of your budget, put toward an emergency fund until you have at least $1,000 on hand just in case the unexpected does happen. This could be an emergency room visit or perhaps the need for a new furnace.
You may fill out your entire budget and come to realize your spending outweighs your income. This is a serious problem, especially if it continues for a number of months. This issue must be addressed as soon as possible. Analyze the situation. Can you cut back on entertainment and eating out? I think so. Is your mortgage over 25% of your income? Maybe it's time to move to a smaller house.
On the other hand, how can you raise the top line? Can you work a second job? Deliver pizzas? Sell stuff on eBay? Plainly stated, if your expenses are more than your income, you need to either make more money or start spending less. It's that simple. The rest comes down to creativity.
I do not intend to sound unsympathetic. I understand people have all sorts of different financial situations. But, financial freedom IS possible. We have the privilege of living in a country where opportunity is boundless. If you feel so overwhelmed with the debt on your plate, that you have no idea what to do, contact a financial advisor who can look at your situation and help you out on a one-on-one basis. If you are in this situation, now is not the time to be investing money in the stock market or saving for your kid's college fund. It's time to prioritize and eliminate this debt one dollar at a time.
Use this form from Dave Ramsey to help you keep track of your monthly cash flow. Remember, the bottom number should be ZERO. Have a plan for EVERY dollar you make.
Next time, I'll go into a little more detail about the emergency fund and why you want to have it.
Wednesday, December 31, 2008
The Cost of Interest
Perhaps you have been thinking about my challenge to you yesterday to come up with financial goals for 2009. Part of you may be thinking that sounds like a great idea to eliminate your debt fast. But, you may also be thinking that it's kind of nice to only be paying your minimum monthly payments. In fact, you may be getting along just fine by doing so. When you look at your monthly cashflow situation, you can eat out, buy new clothes, and you still have money left over at the end of the month.
Well, consider how much more money you would have each month if you weren't making payments to the credit card companies and toward your student loans. Don't just think about the interest you pay each month, but the entire amount of your payments. Once you pay your debts off, you will free up a lot of cash for savings, investing, college funds, etc.
If you want a clearer idea of what the interest is costing you, please check out the two links below. Input your information and it will give you some startling results.
Cost of paying minimum payments
What will it take to pay off your balance
Say you have a credit card with a $5000 balance, with an 18% interest rate. It will take you 26 years to pay off that card if you only pay the minimum amount due. You will also end up paying over $7100 in interest over that time. And this is assuming you never use the card again in your life.
After you find out how much you will pay in interest, consider what you can do with that money if you invest it. What a difference!
My intention is not to end the year with depressing information, but to motivate you for the exciting days ahead.
Happy New Year, everyone!
Well, consider how much more money you would have each month if you weren't making payments to the credit card companies and toward your student loans. Don't just think about the interest you pay each month, but the entire amount of your payments. Once you pay your debts off, you will free up a lot of cash for savings, investing, college funds, etc.
If you want a clearer idea of what the interest is costing you, please check out the two links below. Input your information and it will give you some startling results.
Cost of paying minimum payments
What will it take to pay off your balance
Say you have a credit card with a $5000 balance, with an 18% interest rate. It will take you 26 years to pay off that card if you only pay the minimum amount due. You will also end up paying over $7100 in interest over that time. And this is assuming you never use the card again in your life.
After you find out how much you will pay in interest, consider what you can do with that money if you invest it. What a difference!
My intention is not to end the year with depressing information, but to motivate you for the exciting days ahead.
Happy New Year, everyone!
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