CREDIT CARD PAYOFF CAUTIONS

Yahoo.com posted this information on paying off your credit cards the wrong way.  They are certainly worth consideration.

"Whether you're carrying a few hundred or a few thousand dollars in loans and credit card debt, making a commitment to get out of debt is a noble goal--unless you're using the wrong payoff strategy.
Some self-discipline with the budget and a strategic debt payoff plan will put you in a better financial position, but you'll also need to make wise decisions about how you pay off that debt. Paying off large amounts of debt all in one go or using up a savings fund aren't always the wisest financial moves.
[See 10 Ways to Start Earning Extra Money Now.]
Here are five dangerous debt payoff strategies to avoid:
1. Paying off credit card debt too fast. If you're a habitual credit card user and decide to pay off credit card debt in one big swoop, you'll enjoy the satisfaction of clear credit balances for a while--but could end up racking up more credit card debt in the near future. If your credit card spending is out of control, you'll need to work on breaking the habit of spending with credit cards altogether. Paying off that credit card debt quickly without making some adjustments to spending habits could lead to another credit card spending "binge." Wean yourself off credit card spending so that you don't fall back into old habits.
2. Using emergency funds. Your emergency fund needs to be one of your "no touch" accounts until you're facing a real emergency. If you use up your emergency funds to pare down that debt load, you'll have to deal with financial instability when faced with medical bills, a family emergency or another situation that demands some quick cash. Avoid tapping into your reserves just to pay off debt. Even though you would be eliminating a debt load, you won't have any type of financial cushion to fall back on. Look for ways to earn more money or sell assets so that you have more cash available for your debt payoff strategy.
[See The Secret to Living Well on $40,000 a Year.]
3. Tapping a home equity line of credit. Borrowing against the equity of your home can give you some extra cash for large purchases and even pay off some debt. However, this strategy can be a bad move in the current economic climate when housing prices continue to drop. When the value of your home drops and you end up having to sell the property, you'll end up owing more than you bargained for. Avoid tapping into a home equity line of credit unless you're certain that you will be staying in your home for several years, and that your home has the potential to increase in market value.
4. Withdrawing from a 401(k). You've worked hard to build up a healthy balance in your 401(k) account and have been consistent with your contributions. Don't let all that hard work go to waste by withdrawing early. While withdrawing funds from a 401(k) may seem like a simple way to get a lump sum of cash to put toward a debt repayment plan, you will be paying fees for an early withdrawal and will be clearing out those much-needed savings for retirement. Look for other, less costly ways to pay off debt so you can leave your 401(k) intact for as long as possible.
[See 401(k) Mistakes to Avoid.]
5. Filing for bankruptcy. Filing for bankruptcy can seem like an easy fix when you're overwhelmed by your current debt load or can't seem to put together a workable debt payoff plan. Keep in mind that the effects of filing for bankruptcy can last 10 years and creditors and employers will see the bankruptcy filing listed on your credit report. Potential creditors can turn you down for a new credit line when they see bankruptcy on your record, future landlords might think twice about renting to you, and employers that conduct credit checks will see the bankruptcy filing on your credit report.
It can take years to repair your credit after bankruptcy so you need to do whatever you can to pay off that debt on your own. Working with a debt counselor instead of a bankruptcy attorney can help you get a better perspective on your current financial situation and formulate a debt payoff plan that works. If you pursue a debt relief program, you may be able to settle your debt without going down the bankruptcy route."

Sabah Karimi is an award-winning Yahoo Contributor and WiseBread.com's guide to travel rewards credit cards.

5 Easy Steps to Becoming a Millionnaire

Yahoo finance (http://financiallyfit.yahoo.com/) lists their 5 Easy Steps to Becoming a Millionnaire.  I'll just list them, but you can go to their website for the rest of the information.  Some of them are self explanatory:

1.  Only marry once. (Divorce costs a lot of money and you lose your stock pile)
2.  Live off one income.  (Save the second income)
3.  Choose the right career.  (Be aware of new trends and don't get stuck in a vanishing job)
4.  Put your money in appreciating assets.  (Cars, toys, etc. will never resell at a higher price)
5.  Don't live the millionnaire lifestyle.  (Keep your home, drive an older "new" car)
(There's an old saying:  "Use it up... Wear it out ... Make it do ... Do without".  Apply to a lot of things.)

5 Things Worth the Splurge

According to USAA's Summer 2011 edition, there are five things to splurge on when you buy to get the best value for your money.  Buy the best that you can afford.  Surprisingly, a "great deal" may not be your best buy.  Check websites for advice on particular brands.

.   Interior paint - $10 - $50/gal (usually about $25)
.   Estate planning - $800 - $1800+.  The more complex your issues, the more the cost.
.   Mattress - check coil count, coil guage and filling maerials.  A decent queen size with innersprings = $700
.   Kitchen knives - premium knife has high-carbon steel blade forged out of a single sheet of metal and a         handle made out of hard, crack-resistant material.  A full set may be about $400
.   Running shoes - entry level may be as low as $50

Now's the time!

Everyone is slowing their spending down these days.  Even if you are not out of work, it will be a great idea to really look at your spending.  Sometimes we pay for things that used to be a good idea, but in truth we don't need that service, idea, magazine, etc. any more.  www. robinroost.blogspot.com included an extensive article concerning couponing.  Be sure to read it and see if it might be of great help to you.  It might also be a good idea to look at http://www.bankrate.com/ to see if your bank savings might make even a little bit more using an online bank.  You have to set up your account and link it to your checking account, but after while even a little makes more.  Take the time to overhaul your finances - you'll find lots of ways to have a little extra money.  God bless you!

A novel idea!

Remember that while getting totally out of debt (except your house payment), it is necessary to deal in cash and to keep each month's money in the same month.  However, if you are debt free, there are some options available that you can use.  Some Credit cards are offering 5% cash back on gas purchases and 1% back on everything else.   It's a whole lot more than savings accounts are paying right now - usually less than 1%.  Depending on how you spend, that could mean a 2-3% saving.  When it was first offered, I just enjoyed the reduction in our credit card bill (we use credit card for travel and gas purchases).  Then I realized that it was a SAVING and began writing a check for that amount and putting it in one of our special savings accounts (emergency, furniture, etc).

***A way of keeping the expense in the same month would be to have cash for your monthly expenses and when you use your card, take that amount out of cash and put in a special place.  When the credit card bill comes, take the cash and deposit it back into your checking account.  You can then pay the bill on the correct month's allowance.  You could also transfer your cash amount you would spend in a month and transfer it to a connected savings account.  This may take a little time, but you will be able to get the savings and not get yourself into credit card debt.  Once you are out of debt - never go back!  It's just a thought and strategy.

Enjoy the whole blog

This blog has all kinds of fun information included:  financial, every day, recipes, etc.  My other blog has only financial information on it and the way to order my book, "FREEDOM FROM DEBT - A Simple Guide". This small book is like a stick of dynamite showing you basic finances for beginners (and those who think they might have missed a step) as well as new married and career folks.  The information is basic but  like secret tips.  Hope you enjoy it.  http://www.wisdombuildsahouse.blogspot.com/

10 Great Reasons to go cash

Smart Money Magazine provided this information to Yahoo Finance!.  The article "10 Reasons I'm Cancelling My Credit Cards" is by Brett Arenda and posted on Friday, July 8, 2011.  You will find it very interesting and helpful.  I'm listing the categories, but you will want to read the article.
#1 I'll spend less;     #2  The card bonuses aren't worth it;    #3  Cash makes budgeting easy;    #4  Less worry about identity theft;    #5  Fewer impulse purchases;    #6  I can still shop online (prepaid card);   
#7  Say Godbye to debt;  #8  Privacy;    #9 Cash rebuilds the link between what I earn and what I spend;   #10  Cash helps peopole I want to help (merchants & suppliers - no fees). 

It's the best starting place to get your financial health together!

5 Things to Splurge On

According to USAA's Summer 2011 edition, there are five things to splurge on when you buy to get the best value for your money.  Buy the best that you can afford.  Surprisingly, a "great deal" may not be your best buy.  Check websites for advice on particular brands.

.   Interior paint - $10 - $50/gal (usually about $25)
.   Estate planning - $800 - $1800+.  The more complex your issues, the more the cost.
.   Mattress - check coil count, coil guage and filling maerials.  A decent queen size with innersprings = $700
.   Kitchen knives - premium knife has high-carbon steel blade forged out of a single sheet of metal and a         handle made out of hard, crack-resistant material.  A full set may be about $400
.   Running shoes - entry level may be as low as $50

ANOTHER use for baby wipes

When I paint a wall, I also paint myself.  I came home from helping paint the church nursery with both hands and arms a lovely shade of green.  We found that baby wipes were the answer for paint spills.  They are inexpensive, sturdy, moist and disposable.  After multiple drips, swipes and puddles, we were able to quickly mop up the messes and leave the nursery without disaster.  (The green walls are the background for our artist to paint figures and murals - the kids will love it!)

I WANT A NEW CAR!

In your mind, you might think that a new car says who you are: wealthy, in control, good looking...I have arrived!  In truth, most people are signing for a huge loan that will be their master for the next five years.  If you can delay this pleasure and repair your present vehicle (or purchase a low cost, preowned one), you can put money aside into savings every month and pay cash and avoid the interest rates or the "repo man".  Remember, everything you own outright cannot be repossessed.  Most financially strong people never buy a brand new car as they lose great value as soon as you drive it off the showroom floor. This doesn't mean that you can never have a brand new car, you just can't have one right now.  Get your cash together and totally enjoy your purchase with no strings attached!

Christmas is coming!

If you haven't begun to set aside money for Christmas gift buying and giving, you must do so now.  You only have the remaining months to "get it together".  Compute what you will be spending and divide it with the number of months you have left to have it ready for Christmas.  The longer you wait, the fewer months you have to spread the expenses over IF YOU HAVE DETERMINED THAT CHRISTMAS ISN'T GOING TO FOLLOW YOU INTO NEXT YEAR!  Everyone wants to be generous at the wonderful time of year that God showed us His Ultimate Gift of JESUS.  Begin to concentrate on what people are saying as to their desires - often just a passing comment.  Then look for sales and ideas to accomplish their wish for as little cost as possible.  In everything, plan ahead.  As Dave Ramsey says, "Christmas comes in December every year."     It's a big step to a Merry Christmas.

You have to do this!!

A word to the wise:  You must have an emergency fund ($500-$1000).  Life happens and you will look to anyone or anything to help you out.  Credit cards will catch your immediate slack, but in the end it will cost you in payments and interest.  As an aside, when you charge, you are commiting next month's (or next year's) money that you haven't even earned yet?  Keep your budget on a "pay as you go" basis.  If you order online or can't use your debit card, put the cash to cover the amount in an envelope and set it aside.  When the statement arrives, deposit the cash into your checking account and then write the check or transfer the funds.  You have still paid the bill within that month's money.

The Feeding of the Five Thousand

You've read the account in Matthew 14:15-21 concerning the feeding of the 5,000 and again in Matthew 15:32-38 of the feeding of the 4,000.  God sets many events as a pattern for us to follow concerning multiplication.  "JESUS took the loaves and fishes and gave thanks, and brake them, and gave to His disciples, and the disciples to the multitude. And they did all eat, and were filled: and they took up of the broken meat that was left 12 baskets or 7 baskets full." 

My husband and I decided that we would follow this example concerning our income from any source.  For every check or statement, we hold it in our hands and lift it up to the Lord, GIVE THANKS and ask JESUS to break it and then we take the money and distribute it to bills or savings, etc.  Does it go farther?  Yes, but that's not the point!  Being thankful is more important than anything else.  You will be acknowledging that God is your source and that He is caring for you.  We have seen checks in from unusual sources.  Experience the blessings that God has waiting for you.  He's not obligated, but it's a special way to give Him honor in your life.

Wealthy Millionnaires

There are many suggestions floating around about getting, spending and saving your money.  One very good article is published at http://www.yahoo.com./  It is called, "Financially Fit - Saving smart and living well".  It has many suggestions about getting and keeping your money.  Go take a look - you don't have to have a yahoo account as it is on their home page.  Just scroll through the news items and it will be there.  Like so many things, "it is hard by the yard but a cinch by the inch".  Get some good ideas and put them to work! 

Could you come up with about $5

That's about the newsstand price of April 2011 Money Magazine.  "How To Reach $1 Million" is a great article with real guidelines on "how to" adjust your savings to accomplish this and an estimated time frame to reach your goal. The article states, "To Hit The Magic Number, You Need The Right Plan."  I heartily suggest that you find a copy - even at the Library - and let the information soak in.  It deals with amount of yearly savings, percentage rate and number of years to $1 Million.  It's never too late to start, but it's very important to START NOW! 

Honey, do you remember the PIN for ...

Bank accounts, online ordering, special websites, etc. have caused us "millions" of PINs, passwords, and user IDs.  We used to enjoy "one size fits all", but sites are now requiring complicated information for security protection.  We solved the problem by buying an address book and writing the information for each web address.  We file the name of the website alphabetically and then put in just enough information to remind us, leaving lots of dashes so no one else knows the rest of the passwords - that way you can keep it by the computer even if someone else happens to open your book.  Also, we have another address book with all the information filed in our locked box in case we can't even decipher the dashes.  It sure make life a whole lot easier and more secure.

Do you wish you weren't so broke?

With all my heart, I desire that you have the money you need to be debt free, raise your family and have a great life journey.  The Lord impressed me to write a book about ways to get ahead in a simple manner.  FREEDOM FROM DEBT was published in the summer of 2010 and is available through Amazon, Barnes and .Noble, Target as well as other book websites.  You can also buy it right here on my blog.  Thankfully, the publisher put a low price on it ($7.99) and I think it has a lot of information to help you get started turning your financial picture around.  Is it the very last word?  No, not all, but it is basic information to help you breath and sleep better at night.  You can click on my website, http://eswestmoreland.tatepublishing.net/ and see about the book.  In my opinion, it's a "good read" and great help to families.  I hope you think so too!  Read in the Bible what God's plan is for you, "Beloved I wish above all things that you prosper and be in health even as your soul prospers" - III John 2.

What do I do with the tax stuff?

Right now you are scrambling around getting all of last year's documents, bank statements, W-2s, cancelled checks, interest reports, donations, etc.  in one place to do your taxes.  What will you do with the papers after you file?  Most authorities say that it is important to keep these papers for seven years. Unless you have a plan, you may just stack it up somewhere.  We bought plastic tubs with covers (maybe a plastic shoe box is all you need) and put all of that year's papers that pertain to tax information in it and label it for that year.  We have a " that pertains to taxes.)box for each year of the last seven and when we put in the current year's information, we shred the oldest year.  Just stack them up in the back of a closet.  If you ever do get audited, you have all the information in one place.  It may not be fancy, but it certainly works.  (I don't mean clean out your files and put all of the papers from the year.  You will need to keep certain papers in their normal files.  I'm talking about the "stuff that pertains to taxes.

Are you losing money trying to save?

You probably know this, but if you overwithhold income tax by claiming fewer dependents, you will get money back on your income tax check,.  Do you realize that you will have loned the US government your money and receive no interest for it.  You could have been making some interest if you would figure up the difference and have a payroll deduction for that amount sent directly to your savings account.  Your paycheck will look the same, and you will have capitalized on this savings opportunity.

Do you know the state of your "flocks and herds" (finances)?

Several years ago, I was reading Proverbs and the one Bible verse that began my quest to find how money works was Proverbs 27:23-24.  "Be thou diligent to know the state of thy flocks, and look well to thy herds.  For riches are not for ever: and doth the crown endure to every generation?" It is very important to understand your financial picture.  You will either control money or it will control you.

Do you know how much you actually owe on each credit card or account?  Most people are only aware of how much their monthly payment is and do not know the unpaid balance.  Also, pay attention to what percentage they are adding every month to your unpaid balance.  When you are "in the know" and have the right information, it will spur you on to pay off that debt as quickly as possible.

Dave Ramsey's Debt Snowball

If you have credit card debt, you will want to discharge it as quickly as possible.  Dave Ramsey's "Debt Snowball" plan is the best one I know to accomplish this.  The strategy is to list all of your consumer debts and the minimum payment for each - car, Sears, Pennys, etc. (not house payment).  Start with the one with the lowest balance (not interest rate) and throw everything you can against that bill until it is paid off.  You must keep on paying minimums on all of the other bills.  When you have paid off #1, then take the minimum payment for it and add it to the next lowest bill's minimum payment.  You will pay #2 off much quicker.  After #2 is finished, add #1 and #2 to #3's minimum payment each month until it is paid off too.  Continue dragging all of the minimum payments from #1, #2 and #3 to #4, etc.  By now the payment will be considerable and will bring down #4 quickly.  That is the meaning of "snow ball" - it gets larger with each attack.  You may be looking at 18 - 24 months to pay everything off, but think how long it would have taken you by paying only minimum payments and having the finance charge each month continually increase your bottom line.  IT'S A GREAT STRATEGY - be sure to use it ... make yourself use it.  You'll be glad you did.  Oh, and by the way - stop charging on credit.  Pay cash or wait until you can.

Some Financial Websites to consider

Better Homes and Gardens, February 2011, listed these websites to help you make the most of your money.  http://www.mint.com/, http://www.billshrink.com/, http://www.smartypig.com/, http://www.ebates.com/.  There is another banking website which helps you find online banks that pay higher savings accounts interest:  http://www.bankrate.com/.   Any of these are helpful to spur your interest for financial change.  Take a look and see what you think.  Also, let me know if you know of other websites.  Go to http://www.robinroost.blogspot.com/ for wonderful coupon information.

Did you keep track of Christmas spending?

Christmas is the most wonderful time of the year.  In addition to the celbration of the birth of Jesus - the Savior of the world, it's full of family, fun, and gift giving.  Add a little snow and it's thrilling for young and old alike. 

Without adequate planning for Christmas expenses and giving, January and February may be a rude awakening that you overspent.  There is a solution for next year!  Take the time now to add up your Christmas expenses.  Once you know what you spent, you must divide the amount by 12 and save one twelfth each month - you will enjoy the Christmas holidays so much more.  Rather than always thinking, "we can't afford to do that!", you will have the funds to do and give like you've always wanted to but couldn't.

Next December you will have two options:  Either have the money already, or go through another fiasco like this year.  Christmas is coming whether you plan for it or not.  Do yourself a favor - make some plans.