Why do we have financial problems?

 

Not to the point of speaking to the national economy level, but rather trying to take as the axis focus on the subject or person who has the money, we can say that e l A or key facto in this process is you. Robert Kiyosaki mentioned in many of his books that people are accustomed to bad money management. At this point I strongly agree with him. But the key question is: What factor contributes to our financial ignorance?

 

The answer is simple: Financial education we received

 

To this day I have not seen in schools and universities touch on money management topics and personal finance. No topics such as taxes, banks, etc.. Topics we deal with almost 80% of our lives. So are forgetting 80% of education important.

 

If we take only the school study, I can assure you that you will end up being a total ignorant in financial matters. That’s why many people have problems in their personal finance education were 0% at this point. I never spoke to invest, to control the money, to make a personal budget, a financial plan, etc, etc, etc. Seem be that these issues do not matter, but to be living in highly managed companies for money, where money is taken as synonymous with survival, learning to handle these issues is very important. Even many people react badly when one wants to give some advice or help on this point.

 

Imagine if when his parents gave him money or allowance, you would have saved if only 10% of that money. Perhaps today you would have some money to invest or to learn how. I remember a year I collected $ 50 to $ 100. I will assume that gathered $ 50 per year and I started saving at age 7, arriving at 18, in my savings would total $ 550. I know its not much, but at 18 years and to make a tiny investment is perfect.

 

On the other hand live in a society where spending money is important. Today there is so much consumption, which are not part of it (speaking of important objects) would be like being on another planet. In a consumer society becomes very difficult not to fall into the temptation to spend on something, or talk to the publicity that comes into our head and we toqueta all cables. You end up buying 15 phones per year always saying “this is just the cell that was in need.”

 

Another important factor in the family, a subject that I talked a bit but to summarize, our education at home can not always be the best. For example, I come from a family that has had many money problems, trying to help at this point many answers were negative. Even when I talk about investing or new revenues oppose members and tell me what I have to do really. My question here is: What advice can you give me a money management person when that person has such financial trouble?. But such education and financial advice has been passed from generation to generción creating the illusion that is part of our tradition. Study, work and win money. Investing for them is impossible, in fact the word “investment” in their heads do not have a specific meaning, because it is a topic that does not speak much.

 

Then the key factor of our financial problems is the financial education we got. And the only remedy is a RE-EDUCATION FINANCIAL

 

 

How to re-educate me financially?

 

At this point you are doing, decided to enter this blog, read it every now and then apply some concepts or ideas. Obviously this blog is only 1% of what you need to re-educate themselves. For this reason I decided to create this entry and deal mainly the issue of lack of money, or money to burn. Precisely for that reason is they do not say “Sir / Madam, invest in this, it is best to make money.” The idea is that you buy that education on their own and not be a robot and follow advice from someone who could get wrong.

 

 

Tip 1: bad and good habit Habit

 

Almost always the way to work, back in the car with a friend. I’m very protective of the people I love or anyone entering the car so I demand that you please use a seat belt, accidents are accidents and one never knows when, where and with whom it will. The first few months every day you had to ask my partner to put the belt, now you do unconsciously. This is a good habit, not using the belt a bad habit.

 

Financially the same. Bad habits can be compulsive or impulsive spending, debt, always use credit cards, not manage money well, etc, etc, etc.

 

So the advice here is to try to target these bad financial habits you have and try to change them. If you smoke, surely you do out of habit, but when it is known that smoking is doing. Then with the same money, you know when you are managing or using your money so that it can hurt.

 

Try making a list or write down when you see these bad habits, then keep them in a place where you see them.

 

 

Tip 2: Have a spending plan

 

The famous phrase “the money is slipping away from me” or “money burns me” has to do with the lack of planning and cost control. Precisely the mistake that many people earlier this month (according to various studies) is beginning to pay bills, to see who has money spent on some things and then later this month begins to squeeze the little money they have left. So they made ​​a pick, started with no money, charged, began to spend and ended the month as they began to decrease expenses.

 

Using a spending plan, you can try to maintain a balance and even realize the things you really enjoy and which spends so. I spent such a lot in magazines, until I realized that ultimately ended without reading some or read them in half. By controlling my expenses I decided to only buy the magazines that really interested me or needed, even enjoyed it more because I spent a long time.

 

The advice here is to start writing down your expenses by day, use categories and see it spent on unnecessary or could have used that money on something that gives more satisfaction. Here I offer a guide that is within this blog that will help here: Link to the guide.

 

Just the link I just mentioned speak of rule 9080, I assure you it is not wasted reading this entry.

 

 

Tip 3: Plan

 

I just spoke of the costs and how to control them, the idea would also have planned just such people would like to save each month and we’ll do with that money. So you must plan you want to do, if you invest in courses or events help strengthen its financial intelligence, whether to buy books to help you meet your goals or you begin to invest that money on projects or businesses.

 

Plan, know where it is today (this makes the sheet of financial statements) and where you want to be tomorrow, it will mark the way. Then it is just starting to take steps of its time and the way that suits you and at least know who is walking slowly or quickly, but in the right direction.

 

 

If a ship deviates May 1 ° in the other direction, fast or slow you go, the destination will be completely different.

 

So for now the basic tips are:

 

 

Keep good financial habits

Keep track of your expenses

Plan to do with your money.

As a new school year approaches, many young adults are heading out of college for the first time, armed with many new responsibilities, these young adults have much to learn about their future.

 

Unfortunately, it was reported that financial literacy decreases with each generation. This suggests that as our children grow up and go to college, they appropriately to good money management skills. trained did not

 

Many students fall into the trap of credit card debt before the end of the first year. Along with student loans credit cards are fast, the largest source of debt among Americans under 25 years old. Fortunately, there are a few ways to protect your college student credit card while they learn how to responsibly manage a credit line

 

Teaching Tools

 

There are many tools available to your son or daughter to use credit more wisely. Before you can make your application for a loan to a credit course take advises. These courses are a required part of the bankruptcy process, but very valuable information for people in all financial situations have. A credit course advises on measures such as creating a budget, credit, money management strategies and responsible use. In general, a credit course is advised bid for around $ 30 – $ 60 and last about 90 minutes. These are 90 minutes from information that may change the financial future of your son or daughter.

Comes with the advances in technology, smart way to manage your money. There are many online tools available to anyone to create and manage a budget that also sends alerts when they approach the budget limit. Many new smartphones have applications that can be purchased or downloaded as an additional tool for the pursuit of their money from the banking software. Can know if their money is low to prevent the misuse of a credit card for non-essential elements.

 

Setting rules

 

As parents, you may have co-signed on a credit card for your son or daughter. In a large responsibility requires your participation in the process. Do not give your child a credit card just to say “Good Luck”, but instead put the credit card a monthly source of debate. Before your college student apply for the card, you can sit and make a list of rules for card spending. List what items or activities for purchase by credit card are acceptable and which not. For example, some items such as gas, food and school supplies acceptable purchases, whereas, clothing, restaurants and parties would not.

Make sure you discuss receive monthly copies of the statements of both the statement in detail. Let your child know that you are proud of them for a low balance, pay on time, etc..

 

Given the recent economic problems of the world, there is a higher level of competition in labor. Those who were lucky enough to stay in work have seen companies trying to cut costs wherever possible. Degree is therefore one of the most important objectives for today’s youth, giving them the best opportunity to kick start a long and successful career.

The downside is having to pay back the university graduate student loans. Many new graduates do not get high paying jobs right off the bat, so they find it difficult to repay creditors. If you’re in this situation, you may want to consider consolidating private student loans.

The good thing is that there are federal loans with high interest rates. Private loans, on the other hand, they do.Private banks and other financial institutions are responsible for this type of loan, and they exploit the students who have difficulty paying on time.

Now, in all likelihood will not be able to consolidate your private loans and government loans. The first is the source of high interest rates, so getting them taken care of is essential.

Here are some recommendations for the consolidation of private loans:

- Check your credit report and try to clean it up. If there are errors, write the credit bureau and have them removed.If you can improve your score, you will increase your chances of being approved.

- Determine if the consolidation loan will be worth getting a couple of months down the road. If you can improve yourcredit report, current interest rates might be lower in the near future. Think short term and long-term

- Contact your existing lenders and ask if any of them offer consolidation. If you really want to keep you as a customer, we will try to work with you rather than you lose.

- Get some quotes from online lenders to third parties. You can receive multiple quotes online, filling out aquestionnaire about your financial situation, employment, etc.. When you send the questionnaire, you will be presented with quotes from different companies. The results depend on your answers. Do not qualify for any one loan.

- Read all the fine print before signing anything. Make sure you understand exactly what you’re getting yourself into.Never sign for a consolidation loan if the reimbursement rates and provides sound too good to be true.

7 ways to save money in college

 

 

The college years are filled with experiences and important life.With many expenses to endure all the months, learn to save so that you never miss money in the bank account.

1. Budget. Unless you study and work at the same time, you will most likely be receiving an allowance from your parents. It is very important that you know how to efficiently administer your income as you will face many expenses throughout your college years – rent, food, water, electricity, gas, school supplies, etc, only then will you realize how much power is left for you for personal expenses.

2. Grocery list. Every week elaborate a grocery list and stick to it! Use and abuse of store brands, they are cheaper and as good as any other.

3. Books and school supplies. A significant share of the monthly budget also goes to the academic costs, including books: instead of buying them all, see if a colleague in another year may loan them to you or may then seek second-hand editions. Buying used books is a great way of saving money, and remember to sell your book when you do not need them anymore.

4. New technologies. We can no longer live without the new technologies. Today, all universities have wireless internet for free and since you spend so much time there, why not enjoy it? You can also save on cell phone bill – you can use Skype for example to call your parents instead of spending your cell phone minutes. Skype offers unlimited US calling for about U$ 3 per month. You can’t beat that!

5. Nights and fun. One of the most fun aspects of university life is undoubtedly the freedom to leave whenever you want and enjoy all the academic parties. Of course if it is going to happen every night, your bank account will quickly resent, so try to limit outgoing to those really special nights or parties that no one wants to lose. You can save on partying as well: invite friends for dinner and everyone brings a dish or drink, bring free DVDs from the library.

6. Be happy with what you have. At the university we faced all kinds of people, even those that seem to have an unlimited allowance, the most fashionable clothes of the moment and even a good car … thank goodness for them. Each student must live within its means and that means that you should not compare yourself with others, you should resist the impulse purchases, not to fall into the temptation of credit cards and monetize what you have. Your mobile phone or iPod is still in perfect condition but you really want to get that newer model? Why spend that money when you got is still flawless … and it may be that your parents will provide you at your next birthday.

 

All students and their parents know that return to a university or college is not cheap. And as if that were not enough, the costs increase each year as well. Because of the increased costs of obtaining a higher education, either college or university, people began to question the real value of university or college.

What costs are we talking about? First and foremost the tuition cost but also the full-time students time jobs lost during the transition to university. In addition most students have thousands of dollars of debt when they leave school. Is it really worth? College education is an investment well worth the cost? These are questions any student and their parents should consider. In this article I will briefly discuss an approach to answer these questions. If we use a strictly economic, it is quite easy: You simply look at investment in education and believe the performance from there. This can be done both from a personal perspective and the perspective of society.

From a financial point of view, reliable data to suggest that, on average, and over time a college graduate will earn much more than a high school graduate. The U.S. Census Bureau estimates over a lifetime a university or college graduate earns on average about $ $ 2.1 million, compared to a median lifetime income of 1.2 million for a high school graduate.

Compared with the cost of attending a four-year public university or college with an average cost of about $ 10,000 per year and even adding the cost of lost work time, it is very clear that participation in university or collage has financial value.

But there are more benefits than the strict financial. In a report published by the Institute for Higher Education Policy in 1998, there is evidence that people who have completed a college or university has experienced a number of perks. Some of the key benefits were:

• improved quality of life for their children
• more leisure and recreational activities
• higher levels of savings
• increased mobility, both personal and professional
• better decision making of consumers

Another report from the Carnegie Foundation has mentioned some other benefits of higher education as a clear trend for high school students to become

• more culture
• more consistent
• less authoritarian
• more open-minded,
• more rational

It has also shown that these benefits are passed on to their children and even their children’s children.

We have long known that the university or college may even improve your health and many studies have shown a positive correlation between completion of higher education and good health, not only for graduates but also for their children.

There is also an advantage and value to society of higher education. According to the Institute for Higher Education these benefits are

• increased tax revenues,
• more productivity at work
• expanded consumption
• workforce more flexibility
• rely less on government funding.

The conclusion is that even if a strictly scientific method is applied, it seems to be valuable to college.

 

Why are there so many financial problems in today’s society? To answer this question we need to play several issues that take more than one item to discuss, but if we had to highlight one of the main causes of economic problems, one would certainly be a lack of commitment.

What I mean by this?

When there is no commitment to monitor and improve our finances, you probably do not have a plan, act on the basis of our impulses, we spend more money than we have and do all sorts of things that cause problems in our debt and finances.

Here I leave 3 steps to acquire the commitment to improve and once and for all be the owner (a) total of your financial destiny.

1. Commit to control and improve your finances

The first step is deciding to do whatever it takes to improve your financial situation, get out of debt and never fall back into them. When you think within yourself, you inspire and make the decision to never have money problems, I assure you that your life becomes completely different.

It is necessary to feel that commitment and decision, if you only say “I agree to pay my debts” without any emotion, inspiration or internal motivation, nothing will serve. Think what you want to achieve, how would your life without debt and financial abundance. Do whatever it takes to motivate you and make the decision and commitment to succeed at all costs.

2. Create a specific plan

Since you made this crucial decision, it is time to create a specific plan that will take you to that destination without debt. The first is to create specific goals you want to accomplish in the coming weeks, months and years. Then create a plan step by step how you will achieve. How much will you save? How much will you spend? What kind of unnecessary costs going to rid your daily life?

All these aspects will help you create a better plan.

3. Acts with discipline

When you finish creating your plan, the first thing you have to do something to advance and fulfill it. It works every day with discipline and complies with all that you have proposed. If you meet every day, your self-esteem will go through the roof, you will advance much more and be motivated every day towards achieving those goals you both want to become a reality.

The more discipline you have in your daily actions, you will have less debt.

Apply these 3 steps and start today to change your financial destiny. Remember it is a matter of acquiring the commitment and decide to improve your financial situation.

 

How to keep their debts and finance a day while going to college

When you are in college, your finances can easily start to spiral out of control.

Costs of books, food, and income – can add up to a high amount quickly as you concentrate on your studies and college life is very easy to let your debt grow out of control.

Even if you do not need to start repaying your college loans until after graduation, if you want your finances under control after years of college, you need to start planning your finances and keep up to date while this in the school.

Keep in mind what you are spending. Any college student will tell you it is very easy to overspend when you’re in school – especially if you have student loans. It’s too easy to see their financial aid as “free money”. The reality is that it is FREE! You will have to eventually pay all due, plus financing costs. If you have college loans, spend only what is necessary.Make a budget consisting of income and costs “necessary.” As a college student, your costs “necessary” should include:

• university fees
• books and materials “required”
• income
• food
• transport

These are items that you need to take into account and pay to complete his studies.

Set these costs “necessary” is vital to maintaining their college debts and financial plan. It gives a more realistic in tone to their true costs. Now, make a list of articles expenses “essential” in which you spend your money. This list must include:

• junk food (outside of normal meals)
• luxury items (iPods, Telvisores expensive shoes and designer clothes etc.)
• tickets to the movies
• admission to entertainment events
• etc.

When you begin to consider needless items in which you spend your money, you begin to see how easy it is exceeded with their money. You need to consider these costs in their debt mantenimineto plan to ensure that your finances are up to date. You want to eliminate waste “nonessential” of his life as possible. High end will save time when lluegúe start repaying your loans. ”But it means that my college years are just for fun. I can not get rid of all these costs” essential “!” Of course college is for certain diversions. Establish a maintenance plan debt removes all the joys of college. This is designed to have all your costs in mind. You can continue going to school events or the movies, and you can buy an iPod.Just do not do it every day. Be wise with your spending “nonessential” and remember that you are using college loans to pay for these things, and you will have to pay back much sooner than you think. Your college years will go quickly and you will have a headline and a large amount of debt you need to start paying. If not already done so, avoid local offers of credit cards. You will soon notice a number of booths around campus that will offer free t-shirts, water bottles, or items of audio CD if you applica to a credit card.

Do not be fooled! Although getting a credit card can offer temporary help, or build credit is too easy to overdo when you have a credit card handy.Many students are indebted to a significant amount during your college years. Why? Why spend uncontrollably on credit cards and did not have an effective maintenance plan debt – Monitor yourself!

If you want to limit their debt during and after college, you need to avoid the temptation of ill-afford. Having a credit card makes it easy to overspend. No need of cash when you have credit cards! If you can, avoid getting a credit card will be used forzarádo Effective / personal checks and pay more attention to your budget.

Start saving now!

Even if you have student loans, you need to start thinking how you will pay your debt after college. If you disregard completely their college debts while in school, will have a big surprise waiting after graduation. Start saving as much as possible, and pay their loans. Get a half time job to help himself to start a savings account or to contain at least some of the costs you have. The more you can save, the easier it will start repaying your loans.

Let It Ruin Your Financial University – Create Your Plan Maintenance Debt Today!

The sooner you begin to plan, the better are your finances after you graduate. Do not let the university ruin your finances. Have fun, but I did not spend more than they should.

 

What is the best way to manage my growing credit card debt?

There are a number of different elements to consider when handling debt credit card. We will discuss some of the keys to keep in mind

Avoid having a single credit card

If you have one credit card available and is reaching the limit of the card, you may want to consider applying for another card. Have only one credit card can be risky. If you have an emergency like an unexpected stay in hospital, do you have way to pay? Always try to have a total unused credit available for emergencies.

Another reason to consider opening another card named is related to the use of credit. Using calculated how much credit you are using relative to your total available credit. If you have a credit card with $ 500 of expense and a credit limit of $ 1,000, then your utilization is 50%. There is no ideal use, since, like most things, depends on everything else that appears in their report. But as a rule, should maintain its use on any card, and all your credit cards below 50% to avoid the risk of damaging your FICO ® Score. Research has shown that people who reach the limit of a credit card are more likely to not meet future payments, therefore, Score FICO score considers people who use more than your available credit as riskier than people who use a small portion of your available credit.

Avoid having a lot of credit cards

Across the spectrum, if you have a lot of credit cards, this can also be a difficult situation to manage as your debt grows. The more cards you have, the more likely they just do not see a bill and do not make a payment. Pay your bills on time, even if minimal, is one of the most important things you can do to avoid damaging your credit. Make sure you are comfortable managing the number of cards you have and the total minimum payment obligation that has to keep up.

If you have many cards and feel you can not control the situation, a possible reaction is to close those cards will not have to worry about them. We recommend that you do not close credit cards that are no longer used as a way to increase your FICO Score. Instead, do what is necessary to remove the temptation to use it, but keep the account open with no balance. Closing an account reduces the amount of your available credit and as a result, your credit utilization will increase.

Do not forget the annual interest rates

In addition to the number of cards, their limits and the amount used is also important to note the annual interest rate card you use. Currently, annual interest rates are not provided by the credit card companies to credit bureaus and, therefore, are not explicitly considered when calculating your FICO Score. However, you should definitely know the annual interest rate of all your cards so you can add a debt to a card with a low rate and pay a high rate card.

Paying cards with annual interest rates higher less money at interest and leaves more money available to pay their balances.

 

There is a false belief that college students are browsing through your college life because their parents are paying the bill, or have grants, scholarships or loans that are allowing them a smooth ride. While that may be the case for some, is just a dream for most. The truth is that credit card debt among college students is increasing simply because he is the only way to make it through. For many, even to work beyond their class load, the debt is increasing, since simply cannot work enough hours to take care of the loans cannot cover.

Catch 22

Credit card debt grows among college students often simply from the need to pay for housing, for books, for food and, of course, the two parties or casual. Just trying to survive without having to leave is causing growth debt on a credit card. However, as the credit card debt among college students is growing, is now being reported that they are having to leave due to stress found from the debt burden they are facing.

As a student

All credit card companies are eager to have your business so it is easy to be accepted and which have one or more letters in his possession. The challenge you will face is to use it properly to avoid debt from spinning out of control. While it seems that you have your whole life ahead of you – and do it – that the future will be affected for good or evil for the decisions you make today. Payments overdue or lost your card credit can hurt your credit rating will come back to bite you in the ass in the future. It’s no fun!

Stick to the basics

Bearing in mind that you have to pay the card off – and you’re being young, credit card interest rates tend to be higher – live within your means now. Stick to a budget, set priorities and maintain its remember that your future begins today. A few less “party” supplies today may mean a nice house in a few years! Credit card debt among college students is growing, that’s a fact, but you do not have to be counted in numbers.

As a parent

To the extent that you are able to talk about your child’s life, help them see the seriousness of the need to be responsible as a credit card holder. Challenge them to ”do the math,” in order to understand exactly This will have to pay the debt off and hopefully help them see that the best way for a bright future is made ​​by making the right decisions today.

 

No one ever chooses to create debt, but unfortunately it happens to many people at some point in their lives. In order to get out of debt, you need to make some tough choices and maybe even make some sacrifice. Here’s how you can transform debt into wealth in three easy steps.

Make a complete and honest assessment

The first thing you need to do is to make a complete and honest assessment of exactly what your debts are. Some of us are so frustrated about money problems that we are able to see exactly where we are. Instead of simply allowing things pile up on us, step back for a while ‘and look at it as a whole. This is usually an experience to open their eyes and if you are successful in doing so, is the first step to a debt-free.

List your expenses

The second thing that occurs when you are trying to get out of debt is to make a list of exactly everything that you’re spending. Bring a small pad and pen ink with you wherever you go and if you spend as little as a quarter, write it down. Most people find that they are throwing away money that could be used to get out of debt rather quickly. Do this for a couple of weeks, without changing your lifestyle and you’ll get a good idea of ​​where your money is going.

Develop a budget and stick to it!

Finally, you need to make a budget and stick to it. You may need to give up things along the way, but in the end, you will be able to get them back, and much more.

There is no magic answer that will instantly transform debt into wealth; if there were we’d all be rich. If you follow these three steps, however, you can transform your financial situation and realize the value of money and, finally, the debt-free feeling.