Credit card debt is something that most Americans can relate with far more than they would prefer. Most have seen their credit card debt rise over the past few years or, at the very least, know someone who has. Racking up the charges on those credit cards just seems to come way too easily to most of us. There just seems to be an allure to buying when we don’t have to actually part with any money at the time of purchase, yet we still get to walk away with whatever it was that caught our eye. That’s the allure of instant gratification! Most Americans understand a credit card isn’t free money; that there will come a day when we have to pay, but that thought doesn’t seem to be foremost in our minds when we are paying for the purchase with that card. But one of the biggest misconception of absolving ourselves of credit card debt is that by simply making the minimum payment will get that debt paid off. The cold hard fact is that this is so unmistakably false. By paying off your credit card debt that way you are only paying interest and the debt will never go away. (more…)
Archive for December, 2009
Common Misconceptions Concerning Your Debt
Friday, December 25th, 2009
The Balancing Act: Retirement vs. College Savings
Saturday, December 19th, 2009
Even as the economy begins its slow crawl back, college costs are continuing to rise – that means parents are continuing to fight a tough battle between funding college and funding their own retirements.
In October, the College Board reported that the average published price of tuition and fees for in-state students at four-year U.S. public colleges was $7,020 for the 2009-10 school year, up $429 or 6.5 percent higher than a year ago. After adjusting for inflation, the average net price paid for tuition and fees by public four-year college students overall is lower in 2009-10 than it was five years ago — but higher than it was last year. Private four-year colleges saw a smaller increase of 4.4 percent or $1,096, but for a much higher average annual tuition of $26,273 for the school year. (more…)
GETTING YOUR FINANCES READY FOR THE NEXT RAINY DAY – OR DECADE
Wednesday, December 16th, 2009It was Benjamin Franklin who once said, “The man who achieves makes many mistakes, but he never makes the biggest mistake of all – doing nothing.” (more…)
10 THINGS YOU CAN DO IMMEDIATELY TO SLASH DEBT AND SPENDING
Saturday, December 12th, 2009Any financial planning process begins with a change in financial behavior and expectations. The degree of change varies based on financial priorities, but in the end, it’s about adopting new habits and abandoning others.
Before you take any of the following steps, it makes sense to talk to an expert who can help you see your whole financial picture. A CERTIFIED FINANCIAL PLANNER™ professional can examine all your sources of income and expenses and find the most efficient ways to cut expenses, pay off debt and boost the money you have for saving and investing. (more…)
How Your Personality Affects Your Financial Decision-Making
Tuesday, December 8th, 2009All investors are not created equal. That’s why financial planners start their first client meetings with a discussion of money attitudes, goals and risk tolerance – the driver at the root of all investment decisions. Some planners do this by general conversation, others by detailed surveys they ask their clients to fill out.
The survey route can be a more valuable tool because it forces clients to face their money issues, perhaps for the first time. Despite the difficulty in facing up to such key issues, individuals get a better idea of where their money strengths and weaknesses really lie. Often, the real difficulties lie in how money is spent. (more…)
What’s Your Money Personality?
Monday, December 7th, 2009When it comes to money, most, if not all people, have a personality or type. And the key to managing your money better is to know yourself and your “money” type, according to FPA member, Deborah L. Price, founder and CEO of the Money Coaching Institute.
According to Price, it’s important to take into account your cash flow and your net worth when building a financial plan. Your income and asset cash flow are vehicles to help you reach your goals, be it retirement or something else. However, it’s just as important to learn why you want to reach those goals or destinations. You want to understand and resolve any of the ‘potholes’ — patterns of beliefs or behaviors that you have — that may prevent you from arriving at your destination, Price said in a recent issue of FPA’s Journal of Financial Planning. (more…)
Dealing With Companywide Pay and Benefits Cuts
Saturday, December 5th, 2009Even as the economy shows a few glimmers of improvement, most economists expect some continuation of job, pay and benefits cuts to continue throughout the year. What can you do about these moves, even if they’re still in the rumor stage? (more…)
The Science of Debt
Friday, December 4th, 2009It’s a sad, yet simple, truth, that once you’re in debt, you tend to stay in debt. Debt has a sticky quality to it, almost like gum that gets stuck in your hair. According to research conducted by the University of Chicago, people who are in debt now will most likely be in debt five to ten years from now. The only difference will be that they are in even more debt. This survey surveyed 6,000 adults born between 1957 to 1984. People who were in debt at age 20 had an average debt of $10,900. Five years later, this figure quadrupled to $43,700. And so it goes. (more…)
