In 2014, bring seriousness to your financial situation

Related image

Well, we all know that New Year’s resolutions lead more often than not to failure. They are not very often realistic and seek to change behaviors that are often not-so-harmful. That being said, why not take advantage of 2014 to make a reasonable and serious commitment to your finances? While visiting the gym more often this year will certainly do you good, taking back control of your expenses will allow you to pay for your pass for this one! It goes without saying that it is not so easy as a simple resolution. Getting back on top of your debts and expenses requires a commitment. You need to develop a strategy and put it in place. You have to save every penny you can.

Stop compulsive shopping

Supermarkets know your habits; magazines, batteries, gum and all sorts of useless little purchases are placed at the exit to encourage you to leave a few more dollars in their boxes – and not in yours. These purchases may cost just a few dollars each, but they have the power to undo your budget if you’re not careful. No matter the product, compulsive shopping blocks the road to a healthy budget and financial life.

It’s time to discipline yourself. Plan a limit in your budget for your meals at restaurants, personal expenses and to put gas in your car: $ 100 per pay period, for example, will force you to make a choice between your dinner at the local restaurant or the review with your favorite actress on the first page. This kind of choice will inevitably lead you to better evaluate how you spend every dollar you earn.

End bad habits

Image result for end bad habits

You have certainly realized that all the “good” bad habits are expensive: the cigarette, the wine, the game … This kind of habit can quickly annihilate all your good progress towards a balanced fiscal life. With this reality in mind, why not combine your resolutions and straighten your budget by undoing an unhealthy habit? If, for example, you stop smoking and you take the money you spend on your cigarettes and put it in a savings account, the success of real savings and improved health will give you twice as much money. satisfaction and strengthen your sense of accomplishment.

 

Overpay your mortgage

Once you have all these great habits in place and you start to accumulate a great savings, you might be tempted to take advantage of that money to celebrate your success with some sort of outing or entertainment. Remember, before celebrating in your favorite five-star restaurant, only one party can erase all your good work and force you to start from scratch.

It may not be as appealing as a gourmet meal, or as entertaining as your favorite artist’s next concert, if you apply your savings to one of your existing accounts (such as a debt still unpaid, or, yes, your mortgage), you will be able to grow that sense of accomplishment that you feel by staying true to your financial responsibility resolution. In addition, overpaying your mortgage can reduce your long-term interest costs by thousands of dollars and can also reduce the total mortgage term dramatically.

10 Things To Stop Buying Now

Related imageThe human being has in his nature the desire to want something as soon as he sees a store. Whether it’s a freshly baked muffin, new clothes from a retail store or even a Chapters book. The purchase and use of objects are part of life. That being said, there is, or at least there should be, a limit to the amount you spend on useless items. As mentioned over and over again, staying within your budget is essential to maintaining financial stability and achieving your goals. Yet, it is rare that people listen to this advice and respect their budget.

In our opinion, reducing unnecessary expenses is one of the best ways to help you meet your budget. To help and inspire you, here are 10 things we believe you should stop spending your hard-earned money on.

Parking

If you work in downtown or elsewhere and you need to pay for parking every day, you may want to consider a cheaper alternative. In most major cities, you can expect to pay 3 # or more per hour to park in the street, otherwise about $ 12 in a parking lot for the whole day. Parking, after five days, can cost up to $ 60 a week, $ 240 a month, and $ 2,880 a year, assuming you work all year. Spending almost $ 3,000 for parking each year is absurd and not worth it. Would not you prefer to go to Mexico for a week in an all inclusive with your spouse or in Las Vegas for a weekend with friends? If so, take public transit to school or work. It can take the same or less time to get there and it’s even better for the environment. In addition to that, you will reduce your chances of parking tickets, which can add up quickly. With less gas emissions, less wasted money for parking, and more money in your pocket, parking is an easy expense to eliminate from your life.

Smart phone data

Smart phones are great, they allow us to stay in touch with our friends, our family and even work at all times. On the other hand, if you are looking to reduce your bills, you may want to consider how much you are willing to pay for your needs. It’s likely that you all need a phone, but do we need all this data?

Adding data to your plan will probably cost you an extra $ 30 per month, or $ 360 more per year for internet access. Think about the amount you already pay for the internet at home.

Considering that there is WIFI almost everywhere, is the extra data really necessary? Unless your job requires you to have access to the internet 24 hours a day, which is rare, saving $ 360 a year and waiting for free WIFI in the office or at home is well worth it. Plus, do you really want to be able to read your work emails everywhere? Would not it be nice to leave work at work?

Bottled water

Buying a water bottle is a serious waste of money, especially if you are used to it. We understand that it is sometimes necessary to buy a bottle of water, however, if you still buy bottled water, never make an effort to fill a reusable bottle and you have trouble saving, you absolutely must rethink it. Breaking the habit of bottled water can be annoying, but if you can save hundreds of dollars a year just by switching to a reusable water bottle, why not do it?

Gym subscriptions

Depending on the importance of being in shape for you, going to the gym can be expensive, especially if you do not go as often as you expect. We all want to go to the gym as often as possible, but sometimes life stops us there. Why spend hundreds of dollars a year when you can train outside, with almost all the same exercises?

Why not jog in a nearby park and breathe fresh air rather than running on a treadmill in a smelly gym? Tours can also be done outside and you can even create a training schedule with friends, so they will not need to go to the gym and will be able to train with you.

ATM fees

Using an automated teller machine, which is not associated with your bank, to withdraw money can cost users a relatively large amount of money over time. Usually, the machine charges about $ 3 to withdraw the money, and your bank can also add its own fees for using an ATM that is not its own.

Spending this money every time you need to withdraw money is a total waste.

Make sure to go to vote bank and withdraw money there. So, if the ATM is not represented by your bank, do not use it. If there are no convenient ATM options in your area, consider moving to a more accessible bank.

Late fee

Similar to ATM fees, late fees are also a great loss of money. Making a late payment on your credit card, subscription service or utility bill will result in late fees. We are all human, and sometimes make mistakes, so paying these late fees on occasion is acceptable. On the other hand, if you find yourself paying these late fees regularly, consider setting up automatic payments online, so that your payments are made before they are due. This will ensure you do not pay late fees and will help you save money and keep your budget.

Eat out

Grocery shopping is one of the best ways to avoid wasting too much money at the restaurant. Not only does buying fresh fruits and vegetables at the grocery store cost less than going to the restaurant every day, but it’s also a lot healthier. From time to time, it is good to take a break from cooking, but it is also a good idea to get in the habit of preparing meals yourself for work and plan your meals of the week. Both of these are essential for a healthy financial and physical life.

Cheap clothing

When summer comes, you can find all sorts of excuses for shopping and buying new summer clothes. If you are currently in this situation, we recommend buying quality clothes that fit you well and that will last a few years. Jumping on occasions and buying compulsively will likely result in your new clothes being punctured or not doing well by the end of the season. Quality versus quantity is an important aspect to consider when shopping because you will save money in the long run. So, this season, buy fewer items but at a better quality for the same price.

Rubber

As ridiculous as it sounds, you’d be surprised how much money you can save on the gum. First, depending on how often you buy the eraser and the type you buy, the amount adds up quickly and you do not even realize it. Each pack of gum you buy costs around $ 1.20. Assuming you buy a package a week, that’s $ 60 per year without taxes. In addition to saving that amount of money, you will save on your teeth because some brands of gums contain a large amount of sugar. Anyway, when was the last time you took out a pack of rubbers without giving half to the people around you? Considering this fact, we can assume that we buy close to 2 packs of gums a week, totaling $ 120 a year.

The cable

Our generation spends a lot of time in front of the screens. Whether it’s a computer or a cell phone screen, people always seem connected. After spending the whole day working or studying in front of screens, once inside, we should not sit in front of the television and watch programs until we fall asleep. The cable can cost between $ 80 and $ 100 a month, up to $ 1,200 a year, depending on the package. With the ability to watch online videos or pay for Netflix (a cheaper alternative costing about $ 10 a month), paying for the cable adds no value to your life and should not be a necessity.

Who must pay back the credit card of a deceased?

Image result for deceasedIf your parents or in-laws are severely in debt, be prepared, because it will be up to you to pay off their debts as a result of their deaths. In fact, you will have to pay their debts only if you consent. The anxiety is normal; many children are worried about the finances of their parents. In addition, with an increasingly aging population, this concern no longer concerns only children, but also creditors. Below, you will find all the necessary information regarding the debts and their payment following the death of a close member.

The legacy of debt

What happens with the debt after the death of the person? The answer will depend on a number of factors. For example, everything depends on whether the personal assets of the deceased allow the payment of the debt. Also, it depends to whom the deceased was indebted. Although the legislation covers this problem a bit, most credit companies have their own rules.

Usually, the creditors will try to recover the debt through the personal assets or property of the deceased. In case of failure, they can turn to the children or relatives of the person. In case of solidarity debt, it is the person who has remained alive who will have to pay the entire debt.

When two persons are jointly and severally liable to a creditor, both are also liable for the debt and its payment. If one person dies, the other becomes responsible for the entire debt.

Credit Card and Insurance

In some cases, you can use your insurance to pay off the remaining debts. You can consult the creditor and see if he and the deceased had some sort of insurance for that kind of situation.

Make sure your situation is covered by the insurance plan you choose. Hard to believe, but it’s not just because you pay for this insurance that it will apply when the need arises.

Very often, clients will pay for different types of insurance, but once they die, their children or relatives will not be able to use it to pay the debts. One of the main reasons is the age at which the person died. Pay attention to that!

Sometimes, insurance companies will notify their clients that they are paying for coverage that does not even apply to them. Customers will be billed monthly for this coverage, but if in fact it is of no use to them.

Bad debt

A debt is considered uncollectible when there is no money in the estate to pay it or when the debt was solely in the name of the deceased.

In such a case, it is better to be very organized. Thus, when the creditor contacts you, you will have the necessary documents to demonstrate the absence of funds in the estate. However, it is suggested that you consult a specialist before contacting the creditor.

Will and debts

As you know, the will determines in some ways the future of the deceased’s finances. However, note that wills distribute assets, not debts. But these assets can be allocated only after the payment of all debts. Ideally, it is hoped that the wealth will be rich enough to pay off all debts. If this is not the case, goods may be sold to make up for the missing amount. Once this is done, the remaining wealth is divided among the heirs.

Be very careful if a creditor contacts you to collect the debts. If you think you are not responsible for this debt, ask for a copy of your signature on the loan agreement. If you pay for a debt, this is seen as a consent; as if you admit to having been a debtor. That’s why we recommend you consult a specialist before.

Take care of yourself and know your rights

Always keep in mind: you are only responsible for paying off a debt if your signature is on the loan agreement. Without consent, no one can send you their debts. Debt is an individual burden, except in the case where someone decides to take on someone else’s burden. Have all the documents, be organized, know your rights and, if necessary, contact a specialist.