Budgeting

Budgeting for the Divorce Process – Don’t Become a Statistic

Budgeting for the Divorce Process – Don’t Become a Statistic

If you are thinking about getting a divorce then now is the time to make a budget for you and your family to get through the process and deal with the added financial pressure.

One of the biggest mistakes people make when they get divorced is not getting ready financially for the process itself. Divorce costs money. There are legal fees which can be simply low cost divorce agreements or huge amounts if a battle ensues. Then there are the costs that most people do not think about, two households, divided costs that are not usual.

An average divorce takes three years from separation to settlement. It is this time that often sees a couple who may have separated and been relatively OK become financial disadvantaged as the bills mount as there was no forward planning about how to handle the expenses during the separation.

When you separate there are still financial obligations you may need to deal with such as, mortgages, household bills, car repayments, insurance, credit debts, payday loans and children costs to name a few.

Then there are new costs that need to be covered such as two lawyers and legal costs, often an accountant, mediators, and other support professionals. There is also the cost of setting up a second residence for the person leaving the family home.

Some people choose to live in the same home until the actual divorce settlement goes through. Even this arrangement will cost you as you start to divide expenses, there will still be all the legal costs to consider and then the added costs of two separate people living under a single roof.

Even though you may feel like you are being ruled by your emotions. Stop and consider how you may be hurting yourself and your children if you do not look after your finances.

The first thing to do after you have made the decision to separate is to get all your documentation. With this you will be able to get an over view of your weekly, monthly and yearly costs. Add to this your estimated costs of a second home, two lots of legal costs and any extras you can think of.

The next thing to do is to sit down with your spouse and discuss how much money you are both willing to spend on the divorce and how long you think the process is going to take.

Most people do not have much more than a couple of month’s expenses put aside. Maybe you will need to take a further loan on the house or even a loan to pay for the added expenses of divorce. Banks can be quite accommodating and may let you forgo mortgage payments while the divorce in going on. They will want their payments eventually and it will come out of the sale of your home before you see any money.

Sorting your finances at the time of separating can make the divorce process easier for both of you as from the beginning you are both taking responsibility for the divorce and separation instead of stumbling from one bill to the next.

You can jointly decide how much you are willing to spend which will give you a clear idea how long you can afford to keep things going. By deciding on your finances before you separate you will effectively already be working together to settle your divorce.

Nicola Baume is a divorce planner and coach helping people get through marriage breakdown so they can move on into their happily ever after with confidence. You can read more about Nicola’s work at http://www.baumeandco.com.au or visit her blog http://www.simpledivorceadvice.com


7 Reasons Your Budget Isn’t Working

7 Reasons Your Budget Isn’t Working

These days stretching, a buck has become something akin to a magic act. However it simply must be done in order to make ends meet. To accomplish this a personal or household budget is a must. The unfortunate thing is that sometimes your carefully designed budget doesn’t do what it’s supposed to. Here are seven reasons your budget isn’t working.

1. Patience

If you’ve been in a bit of a financial mess for awhile, it’s unrealistic to think that a couple of weeks worth of sticking to you budget will suddenly turn things around. It doesn’t work that way. If you’ve constructed a sound plan, it may take a little time before you see dramatic results. Have a little patience before you give up.

2. Get A Little Fun Out Of Your Wallet

Budgets can be a lot like starvation diets. With monastic zeal we cut out every ‘unnecessary’ expense, pair everything penny down so that it’s being spent wisely while any extra goes into the bank so fast it ruffles the toupee on your bank teller’s head. Such determination is admirable but you can’t keep it up for long. Depriving yourself of a little fun in life will lead to a backlash where you splurge or go on a spending binge. You don’t need these kinds of setbacks. So, while you budgeting, put a little fun into the mix.

3. Following Orders

Budgets aren’t written in stone. That said, you won’t get blood or money out of a stone either. If you think of your budget as something you can bend or break whenever you feel like then you’re wasting your time even trying to get your finances in order. You need to exercise some discipline if you expect your budget to do any good.

4. Get Real

Unrealistic expectations have derailed many a budget. To really get a handle on things, you have to know precisely how the numbers add up and don’t expect them to jump through hoops for you. Create a sound financial plan that represents precisely where you stand financially.

5. Proof Positive

A positive attitude is essential for pretty much anything one attempts in life. And budgets are no exception. Eleanor Roosevelt once said: “if you think you can or you can’t, you’re right.”  Implementing your budget with a defeatist certainty that it will fail will become a self-fulfilling prophecy. Be positive.

 

6. Budget 911

 

No one can predict the future. Well, how do you budget for the unknown? Answer: You set up an emergency fund. A little reserve cash tucked away to help get you over unexpected rough spots life throws in your way. Without this kind of reserve, a minor calamity can shatter your whole budget. Don’t let it happen.

 

7. Do You Fit Your Budget?

There’s a lot of talk about creating a budget that fits you. The real trick, however, is to make sure you fit your budget. Be honest with yourself, your strengths and weaknesses where it comes to money and make sure your budget is something you can live with.

This article was written by Andrew Salmon from the life insurance quote site LifeCover.


Pension or 401k: Opt for the best

Pension or 401k: Opt for the best

You always need to confirm the value of your retirement income. I have seen a number of blogs and websites where it was clearly mentioned that the 401(k) is a retirement savings vehicle. Now the question is how effectively people use 401(k). Conversely, people think that company pensions or other lifetime income allowances from any insurance companies don’t have the risk beyond the savings for retirement. Actually, these options might create bigger risks, which you cannot control.

Question will arise that, which option is the best, Pension or 401k?

Pension is one of the best retirement programs, which pays an employee a set of percentage each year after retirement. It is also probable for the self-employed to create a pension fund scheme and create a degree of financial security for later years, whereas, a 401(k) is an investment account.

Risk does matter:

No matter who is liable for your retirement, there will be risk always. Moving it over to somebody else does not make it leave you. So as difficult as it is to put aside on your own, and make choices about how to invest your hard-earned money, I think you will be more affluent taking on the responsibility. It’s just my opinion.

Let’s have a look on some more options

Company Pension: Managing your retirement plan by the employer is not a universal remedy. The company will do the same that you have to do: prudential investment and fund it adequately. But sorry to say, they don’t do this always.

Don’t worry you have another option that is Insurance Company: You might give the whole responsibility of your retirement savings to any insurance company in place for a lifetime income allowance and that is very much similar to a pension plan.

Well, still you are not comfortable with above-mentioned options? Manage your fund yourself. There are number of accounts that you can manage and those will certainly help after your retirement like a regular brokerage account, IRA (Individual Retirement Account) and 401(k). My suggestion is to choose 401k as a consequence of tax deductions and high contribution limits.

You will find various pension plans available. To choose the best one that fits your income, you can get in touch with pension brokers to know more about it. If you are a citizen of Dublin, you can take suggestions from pension brokers Dublin and they will guide you to the best option available.


Finance Benefits for Military Members – Know Them and Use Them

Finance Benefits for Military Members – Know Them and Use Them

Every veteran deserves to have a home – one that they own. They have served, protected, and sacrificed for our country, and they have undoubtedly earned their right to be called both patriots and homeowners. How can this be done? Through the VA loan program, which has helped over 18 million veterans achieve this dream.

The Department of Veterans Affairs offers government-backed loans to those who have served. With this secure backing, approved VA lenders can lend to a greater number of veteran borrowers as well as offer them great rates and benefits to help them save money. 8 in 10 veterans who have received VA loans would not have qualified for a conventional loan because of low credit or high debt to income rations. After all, they have given so much to our country, they should be helped in return.

Perhaps most importantly, VA loans save veterans money by:

  • Being one of the only home loan options with no down payment
  • Not requiring private mortgage insurance (PMI)
  • Offering interests rates typically .5%-1% lower than conventional loans

The VA loan qualifications require the borrower to have either served 90 days during wartime, 181 days on active duty during peacetime, 6 years in the Reserves or National Guard, or be the spouse of someone who died in service.

There are restrictions on what VA loans can be used toward. Home purchases must be the veteran’s primary residence, and VA loans cannot be used to buy either investment properties or land. VA loans can be used to buy a home, improve a home, or do both simultaneously. They can also be used to refinance both homes and VA-guaranteed or direct loans, and they can be used to purchase farm residences and single-family units in VA-approved condominium developments. In most areas in the U.S., there is a loan limit of $417,000, but the limit is raised in more expensive areas.

These benefits can (and do) save veterans hundreds of dollars every month. However, despite these huge savings, fewer than 10% of veterans have taken advantage of the offer. After graciously protecting the homes of so many, every veteran deserves their own home.


Find Powerful Savings Rates Online

Find Powerful Savings Rates Online

Many people are underwhelmed by the savings account rates they earn through savings accounts. You can follow a few easy tips to maximize your savings rates and earn more money.

The Difference between Bricks and Mortar and Online Accounts
Often, account holders only gain between 0.2 and 0.5 percent yield on their standard savings accounts. Many people opt for money market accounts to increase their money market rates. However, money markets only offer nominally higher interest rates.

It’s possible to earn better rates by putting your money into online savings accounts or online money market accounts. Some online providers will offer interest rates between 2 and 4 percent. These rates can strongly out compete the traditional rates offered by banks.
Just follow some easy tips to raise those interest rates and earn better savings rates.

6 Tips to Find Stronger Interest Rates

1.Find a good database of rates. Bankrate.com offers a variety of rates for your perusal. Here, you can find a modicum of both brick and mortar and online rates. Click the ‘Compare Rates’ link. Then, select ‘Checking and Savings.’ You’ll be able to narrow down your search and look for Money Market Accounts here as well. Continue to select Money Market Accounts and Savings Accounts as you browse the site. Eventually, you’ll find some very impressive yields.

2.Only invest with a well regulated institution. Always investigate an institution before you invest. Some of these institutions will offer unusually high rates in order to entice customers. The “Safe and Sound” rating will clearly display that bank’s safety rating. Suffice it to say, only invest with banks that have a high safety rating. The scale runs from 1 to 5, 5 are superior and 1 means you should stay far away.

3.Only invest with institutions that offer government-backed insurance. You need to make sure that your accounts are insured by the Federal Deposit Insurance Corp., or FDIC. Most credit unions are also insured by the National Credit Union Share Insurance Fund, or NCUSIF. Normally, up to $100,000 of your funds will be insured by the government.

4.Don’t be fooled by fake banks. Some identity thieves and scammers will set up sites that look exactly like that of another bank. Inspect the website carefully and call any phone numbers available.

5.Link up to your checking account. People who open online money market accounts or online savings accounts should link their new online account to the pre-existing checking account. This makes it easy for your transfer money between the two accounts.

6.Choose great rates, but don’t be anal-retentive about one-tenth of a percent here or there. You won’t see much a difference if one yield offers .01 percent higher interest than a different yield. It is important to get a rate that will beat the rate of inflation. Also, don’t be enticed by a high teaser rate that will sink in a few months.

Be Diligent About Interest Rates
All of these basic tips can help you find savings rates that will promote financial growth. Always be on the lookout for the best rates. It takes some research, but you’ll be glad you did the legwork before you invest.


Control over our finance its not so easy.

Control over our finance its not so easy.

Keeping control over our finance its not so easy as we think. Few people can get this mark positively, well, most fail to succeed in this process. Achieving for financial plan is highly required.

Normally, we can find lots of article published in the web for financial planning. I will always suggest not taking any help from financial experts and specialist, because you can’t trust them all the time. It’s better to take you own steps I this types of case, no one knows your condition better than you. Its better you search about new techniques and then put your step forward.

You can have problem with most of the financial experts may they don’t have enough plans for your condition. They might show you what they did earlier with other clients in the past, for your  case it’s a new deal for them, and can’t assure you properly or if they can, can’t take you out of it.

Your personal finance plan has to be completely only one of its kinds for you. Its always good to make your plan your own self as I said earlier in this article, may it can be tough for you still, it not impossible. You are the exact person to know about debt and credit you have, so you will be the best to judge it. If then you can’t manage then you opt for some highly professional financial planner who can work properly..


How To Avoid Bank Fees

How To Avoid Bank Fees

Having a bank account is a necessary part of everyday life. It is safer and tremendously more convenient than cash. However, the fees that are incurred are not so pleasant and there are ways to minimize what you pay.

Banks are in the business of making money but there are some fees that can be avoided. If you know what to look out for you can take the appropriate steps to lessen the blow of paying bank fees.

Tips That Will Save You Money

We all need to use our banking accounts but there are some ways that you can utilise your account in a smarter manner that will save you the headache of paying to many bank fees.

Do not go below your minimum balance – Many banking accounts require that you keep a minimum balance. Going below this balance can result in receiving a fee. There are some accounts that do not require a minimum balance but it is a good idea to keep one established just in case. You do not want to overdraw on your account. The fees are usually more for overdrawing on your account so you will want to avoid it at all costs.

Cut down your ATM withdrawals – You can take a large hit in bank fees on ATM withdrawals. This is especially true if you are making withdrawals from machines that are not associated with your bank. If you must withdraw money, make a point of only going to machines that are affiliated with your bank.

It never hurts to ask – If you have had some fees show up on your account for any reason at all, take the time and effort to speak with your bank about them. If it seems to be obvious that it is not in line with your usual banking activity they may choose to waive them. The worst that can happen is that they say no.

Keep up on bank correspondence – Open all of your bank mail. We all receive junk mail but banks are obligated to inform you of any changes made to your account. Make sure you check all of the mail that comes from your bank so you are fully aware of all of the goings on with your account.

Use your credit card for everyday purchases – If you use your credit card to buy things instead of taking out money from your bank, you will only have to make one payment and you will not have to pay withdrawal fees.

Timothy is a personal finance writer at www.balancetransfercard.com.au. He helps people to compare and choose balance transfer credit cards.


Using net banking or internet banking services

Using net banking or internet banking services

People think of using net banking or internet banking services, but they think of being cheated. Is this a risky things to do. As we have heard of many internet frauds and scams that many people think that they can be a part of fraudulent and mostly it will get tougher to handle money.

I can say one thing for banking with internet are extremely safer, all the time an new numbers gets generated while transaction. You are able to to transact or transfer fund at anytime 24/7 across the globe., only you need internet and a laptop or an high end cell phone. Surely it will save your enough time to run at bank and stand in a long queue to deposit and withdraw money. Get money from some one through internet banking and then go and withdraw from ATM. As per the results the usage of internet banking has increased as compare to last year, because people are realizing the benefits of it and safer way to transfer.

Have a safe banking experience

Rule no one, never share your user id or customer id along with the password with any stranger neither with your friends, but in some cases you can share with your dad or mom or with your wife, this because, in case of any emergency. Rule 2, You may get an email which has a link to your bank’s site. This types of links from such website are fake, this websites is designed to look exactly like your bank’s site. Lots of people clicking these emails and login on the page they are directed to. But please never do this. Always type proper link of your bank use your personal computer to use internet banning services. Using a shared computer or one at an internet cafe must never be done.


We  may speculate accurately what being financially elite means

We may speculate accurately what being financially elite means

Being financially elite means the best of the best. If we are to come with a  honest shot at making it into that class, then we need to know the way exactly. The first and the foremost thing we to need to learn is how to make money using money. One of the great ways to do this make wise investments and use the pay off from them to make larger investments.

Smart planning is what we are going to make it in the earth of finances. It doesn’t matter if we try to start our own business or if we put ourselves into stock trading. Its better if we talk to those who have already achieved something in the kinds of things that we are doing and try to learn everything from them. Literally education is one of the all investments we could ever make for ourselves, and managing personal finance sometimes will have the great opportunity for us.

If we sell products it might be its going to go like hotcakes or selling a product to everyone is going to need at some time or other path to become financially elite. For the people who are trying to make money from affiliate marketing or from internet related sales, we may have the chances of doing good if we have the will to dedication, as well as patience to continue, one thing to keep in mind no one starts from top until they belong to there.

Our attitude will make everything  whether we can make it in our life or not, no matter what kind of financial goals we have for ourselves what we need is to stay positive about our goals and find the positive ways as well.


Tax Benefits – Whose incomes are too high

Tax Benefits – Whose incomes are too high

Does your business hire your children or your children may earn up to $ 5700 devoid of paying any income tax properly. Hiring your own kids to work for you, literally a portion of your income will be diverted from its present tax rate to a tax rate of zero. If your business is constructed in a proper way that you have to compensate payroll tax on your child’s earnings, may be that tax is more of 15% and which will probably less than your present tax rate.

May you can think of IRS which set many tax deductions and benefits in the place for the taxpayers. Unluckily, some taxpayers who naturally earn huge level of income and may be they can see these profits arranged out as their income rises.

If we take this as an example, if you earn more than $1 million annually, then up to $ 25,000 of the rental income losses to qualify as some of money, it means you can save lots money on other income origins by this inference.

Normally, if you add a C-Corporation to your industry construction you can decrease your taxable income and therefore you will be eligible for some of those deductions for which your present income will be higher. You should have to remember this C-Corporation has its own individual taxpayer. With a C-Corporation in place, you can use it as lower tax rates.

All your expenses and your income, which changes year to year. Some years back the bug will eat your head off and other years, and you will eat the bug. This is particularly better plan if your income just goes beyond the utmost for tax benefits.

Discussing your tax plan with your tax specialist and financial planner will be a great idea. The key factor is to lower your taxable income so that you may get tax benefit or else starved of, because your income is too high.


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