Lowering Expenses

by Jacob Joseph

REDUCING YOUR MONTHLY EXPENSES. Do you struggle with managing your finances? Does it seem like you just never have enough money?
Featured below are some tips on how you can lower your monthly bills and expenditures. You may find that some of these suggestions are not going to help you. However, you will definitely be able to utilize more than one of them.
Shopping Smart
Never buy anything on impulse! Ensure that you are getting the lowest price for your purchases by doing research. This will entail visiting several stores and/or websites. Locating the best deals instead of impulse buying will typically save a significant amount of money. It will take you some time and effort, but anytime you save money its worth the extra work. The money you save can be used for paying off debt, investing, or for whatever your needs are!
Transfer High Interest Credit Cards to One Account
Credit card companies make their money by means of the high interest rates they charge. If you have several credit cards, it would be a good idea to apply for a card that offers an introductory rate of 0% for balance transfers. Not only will you be able to pay off your credit cards at a faster rate, you'll save money in the process. There are a wide variety of credit cards that offer 0% intro APR on balance transfers. Try and find one that offers rewards that will beneficial for you.
Lowering Your Bills
This entails cutting back on utilities like cooling, lights, water, heating, etc.. For example, when you are not home, make sure all of your lights are off. Or, regulate your thermostat warmer or colder so that you are not wasting money by making your house comfortable as though you were there. This may be simpler for some, but not others. Find a routine that works for you, and stick to it. **A good idea would be to research your home and cell phone plans to see if you can find a new one offering the same benefits, at a less expensive rate. Try doing this with your cable or satellite TV provider. No matter if it is only a few dollars that you are saving every month, it is more money in your pocket!
Avoid Dining Out
Going to eat at restaurants is costly. By eating home, not only will you be saving money, you have the potential to eat much healthier and spend more quality time with your loved ones!
**When shopping at the grocery store, make a list with you beforehand. It is very likely that shopping without a prepared list will result in you purchasing goods that you either do not need or do not eat.
Keep Records of How and Where Your Money Is Spent
It may be difficult to do, but try and keep track of every penny that you spend for about three weeks. It is likely that you will be able to spot areas where you can tighten your belt or eliminate altogether. Change your spending habits and proceed to keep tabs on where your money is going. This will allow you to continuously evaluate your spending tactics so that you can reduce your expenses and save!


Develop a Budget
Figuring out where you spend your money will help you gain control of your finances. Budgeting will help you determine areas where you can reduce spending and what areas of your spending habits need to be changed. A budget is difficult to develop, but even more to maintain. Learn more about developing budgets.

In conclusion....
Over time, you will become more alert as to how and where you are spending your money and what you can do so that you spend less and save. In order to accomplish you short and long-term goals, you are going to have to make a concerted effort at changing your ways.
Jacob Joseph is a financial expert for http://www.starloanservices.com. At Star Loan Services you can learn more about managing money.
Article Source: http://EzineArticles.com/?expert=Jacob_Joseph

The Wonders of Compound Interest

by: Rosella Aranda
Resource : http://www.articlecity.com/articles/business_and_finance/article_1753.shtml

Albert Einstein called compound interest “the greatest invention of all time.” It has even been referred to as the “Eighth Wonder of the World.” The trick is to get this tremendous force working for you rather than against you.
Is compound interest gobbling up a significant chunk of your earnings? If you maintain an ongoing balance with a credit card company, compound interest is costing you much more than you probably realize.

Let’s start with basic interest, which is a fee that you pay to a lender for the privilege of borrowing his money. This interest is attached to the original amount at an agreed upon rate. Compound interest is calculated on the balance owing plus any previous interest charges. So then you find yourself paying interest on the interest. This compounding effect continues until it virtually takes on a life of its own. Credit card lenders make a killing putting this principle to work for them. Allow me to illustrate.

Let’s say you’re carrying a balance of $1,000 on a credit card with a 15% APR. If you pay only the minimum each month, you could conceivably gnaw away at this debt for over 25 years and end up repaying a total of over $3,400! If, on the other hand, you could commit yourself to paying $100 per month, this debt would be wiped out in less than a single year and the interest would come to a much less offensive $75.

Now let’s look at what would happen if you took $1,000 and put it to work for you instead of against you. Let’s assume that you are able to keep your hands off this money and simply let it sit and earn 6% interest compounded annually. After 12 years, your money would have doubled without you adding one extra penny!

You can quickly figure out in your head how long it will take for a sum of money to double by applying the “Rule of 72.” You simply take whatever interest rate you’re earning (6% in this case) and divide it into 72. The result will be the number of years required to double your money. (72/6 = 12 in our example)

You can apply the rule backwards as well. Let’s say you have a lump sum of $5,000 that you would like to grow into $10,000 in 8 years. You would need to find an investment that pays 9% compound interest. (72/8 = 9). If the best you can find is an 8% return on your money (hypothetically speaking,) then it would take you 9 years to double your money. Not bad for just letting it sit there!

Now let’s assume that you want to help the growth rate along, so you add an extra hundred dollars to this account just once a year. At the end of the 12 years, you would now have $3,800. If you could discipline yourself enough to add $200 a year, then you would find yourself with almost $5600.

Seeing your money grow like this might well entice you to invest more money each month and really reap the benefits of this wealth-generating principle. And there’s more good news. These examples demonstrate what happens when your investment compounds annually. Some institutions are more generous, compounding your interest quarterly, monthly or even daily.

It’s pretty clear which end of the compound interest principle you want to be on. The first step toward the winners’ circle is to pay off your existing debts. Even if you’re already having trouble making ends meet, a mere $1 addition to a minimum payment can significantly shorten the life of that loan. That’s right, just one dollar. You won’t miss it and it would be well worth it.

Remember the compounding effect. And once you’re out of debt, there’s no minimum for earning compound interest. Any sum that you can set aside will do. You don’t need to be Donald Trump or Bill Gates in order to benefit from compound interest. It can work wonders for us all.

About The Author
Rosella Aranda, international marketer, writer and business mentor, collaborates with a team of experienced professionals to help people achieve financial health and peace of mind. To learn how to reduce your debt, view: http://www.FreeFreedomSeminar.com. For further information on how you can become financially independent, please visit http://www.FinancialFreedomWorld.com or write to rosella_aranda@yahoo.com.

Personal Finance - Managing Your Own Personal Finances

By Dave Fletcher

Feeling financially secure in your future is a comforting thought. Learning how to manage your personal finances is a goal everyone should strive to as it brings about rewards rather than despair.

To help get you started you should first assess your current financial status. This is the essential first step as it outlines where all you personal finance sits. This can be a daunting task for anyone, and something most people avoid, however a basic understanding of your financials can improve your lifestyle and reduce your stress ten fold.

Understanding of your personal finances requires three things: current expenses, current income and awareness of any financial problems and desires.

Take note of how much you are spending. Make notes on your monthly expenses and match them off with your total income. If you find your expenses are more than your income then you need to make some decisions about reducing your expenses in order to avoid taking out unnecessary loans to get by.

A good approach to have when creating your personal finance plan is complete honesty. Be honest with yourself when deciding on how much you can really afford and your total expenses. By doing so you will have an accurate overview of your financial standing. If you are not honest then your assessment will be skewed and the possibility of worsening you financial situation is a high possibility.

Perhaps the single most important factor in your personal finance plan is discipline. Admittedly this is easier said than done, however strong discipline will allow you to decide on what you should spend your money on and what you should not. Discipline is imperative if you strive for a stress free financial future.

Build a solid understanding of financial terms and money saving methods. Before investing be sure you understand the market or deal.It is never too late to for a financial education and by doing so will allow you to make decisions surrounding your personal finance much easier. Seek out financial advisors such as your accountant, or financial planners. Research and understanding will allow you to achieve your financial goals much sooner.

Visualize you facial dreams as this provide the motivation to discipline yourself and stay on track. You will be able to decide on which financial desires are achievable and within realistic reach. Focus on realistic goals as they will provide success and keep you motivated to continue.
Without question, spending wisely is a very effective method of improving your personal finances. Very simply do not spend more than you can earn or make sure your outgoings are less than your incomings. You can easily manage your own personal finance matters with a bit of honesty, discipline and financial knowledge.

Dave Fletcher is a Finance Loans consultant specializing in personal finance solutions
Article Source: http://EzineArticles.com/?expert=Dave_Fletcher