Financial Security. Its Greatest Enemy.Written by David Wilding
If you had to choose greatest enemy of your financial security, where would you look? In lineup as you look them over who would you choose? There are so many that qualify. Banks, credit card companies, persuasive advertisers, finance companies, and identity thieves, would all be in running. Banks because, while you are their customer, they do not have your best interests at heart. They hit you with all sorts of fees and charges for services which used to be provided free. They constantly bombard you with offers to go further into debt. Car loans, home equity loans and other lines of credit are pitched in every statement you receive. But, they are not your worst financial enemy. Credit card companies love to add charges for many different errors on your part (and sometimes theirs). Late fees, over-limit fees, yearly fees, and returned check fees are just a few. They hike your interest rate if you looked cross-eyed on a Tuesday, or miss a payment (not just with them, but any creditor). Still, they are not your greatest financial enemy. Persuasive advertisers love to get you to buy, buy, and buy. They have you pegged as far as your habits. They know your wants and desires. They have so much information on you, fight isn’t even fair. Their ads make you feel good and pull all triggers. Yet, they are not your greatest financial enemy. Finance companies who charge rates that reach to moon do you no favors when you walk in door. Sometimes you don’t even need to walk in door. They send you a check you can deposit in your account and thus take out a loan with them with out ever seeing them. They turn easy money into easy debt; easy until it comes time to pay bill. Even here you will not find your greatest financial enemy.
| | How To Budget Your Household AccountsWritten by John Mussi
It is so easy to despair when you encounter your first financial crisis. You're not alone. Many people face a financial crisis some time in their lives. Whether crisis is caused by personal or family illness, loss of a job, or overspending, it can seem overwhelming. But often, it can be overcome. The important thing to bear in mind is, not to panic!The most obvious first step is to prepare a budget and although it may not be everyone’s Idea of fun it is nevertheless necessary if you are to take first step towards overcoming your financial situation. Have you seriously considered preparing a budget? Not just a mental note but a written exercise taking a long, cold, hard and truthful look at your predicament. It may sound a very obvious statement to make but first step toward taking control of your financial situation, is to do a realistic assessment of how much money you earn and how much money you spend. The operative word here being “realistic.” It may not be pleasant to be so forthright about your own circumstances but if you choose to ignore certain aspects then you are just deceiving yourself and whole exercise would become a complete waste of your time. Start by taking a blank piece of foolscap paper and divide it into two halves by drawing a line down middle of page. On top left side of page write a heading of “Income” and on top right side of page write a heading of “Expenses”. Commence by listing in “Income” column all your income sources to include wages (full time and part time) for yourself and/or your partner, rental income etc.
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