Monthly Archives: December 2011

Start a Budget Today To Build Wealth In 2012

No matter how 2011 was, you will be quite focused about making 2012 a year of building wealth. You can build wealth if you are able to take control of your debt, reduce unwanted expenditure and supplement your income. Here is how you can start a budget to build wealth

1. Use the Money Manager software – Your bank may offer personal finance budget software or you can download an independent one. With this, you can track your expenditure, manage your savings, put down the due-dates of various payments and plan out avenues to earn more money. It will help keep you in control of your financial destiny. Those who have used it, believe that it is a very important tool to gain control of one’s finances and build wealth

2. Invest money in the right avenues – Depending on your investment appetite you can invest your money in the instrument of your choice, which can be direct equity, mutual funds, 401K etc. Just make sure that when you are investing in mutual funds or stock of a company, you find out how the company has been faring even in loss-making years to get an idea of how financially viable it is.

3. Freedom from debt – It is important to get freedom from debt if you want to be in control of your finances. Your budget plan is streamlined better if there are no hurdles of debt and increased interest rates. This can be done by shifting outstanding balances to a new card with low interest or zero percent interest. Make sure that you pay back the balance transfer payment within the introductory period.

4. Check your credit report – Download the three-in-one credit report and find out if there is any discrepancy in any information provided in the report. You can dispute it and have it cleared because a negative marking on the report can affect your credit rating, making some loans unattainable to you or attached with high interest rates.

5. Build your savings – You should build your savings by transferring a part of your salary into your savings kitty. In fact, experts say that you should have contingency funding which comprises 6 months’ salary as minimum so that you can be able to handle any emergency situation without resorting to loans.

6. Supplement your income- Look for inflow of money, focus on how you can earn more money. If you can afford part-time job or a business that can supplement your income, it is definitely a good thing to do. Thanks to the Internet, there are a lot of avenues to earn money online. You can make the most of the opportunity and earn a lot of money. The key thing is to research and emulate the success principles of people who have achieved success. You may also be able to chart your own course in the process.

Applying for an Unsecured Loan to Pay Off Holiday Expenses

People normally spend during Christmas season. You probably had your share of the adrenalin rush for the holiday shopping, midnight sales and last-minute purchases. Most of you may have gone through stress because of money issues. It could be that you lack sufficient funds to make your purchases or you spent more than your budget for the holiday season. When you experience stress because of the latter, your holiday bills may have caused even more stress especially if you have maxed out your credit cards on your shopping spree.

There is no need to worry too much since you have various options to take care of your holiday expenses. However, you are still not exempt from having to pay them off eventually. One option you can consider is to get a loan application from a lending firm or a credit union in order to pay off your holiday bills.

Signature or Unsecured Loan

If you have plans of making important purchases such as home appliance, Christmas season is one of the best times to do your shopping for those important items because most stores offer sales and markdowns. Christmas shopping, they call it. If you are facing a huge problem on making payments after receiving your holiday bills, try applying for a signature loan. Otherwise called as an unsecured loan, this provides fixed interest rates and monthly payments, which are offered by most lending agencies and credit unions.

Ideal Loan Amount

If you qualify for an unsecured loan, remember that your primary purpose for doing so is to pay off your piled-up post-Christmas bills and not to add more debt than what you are already facing. If a credit union will offer you an amount that is higher than expected, do not be overwhelmed with that fact. Rather, keep it to just the needed amount to settle your holiday bills. The idea alone of paying off a debt with another debt is no good, so be responsible enough in your finances.

Controlled Monthly Payments

Normally, unsecured loans have fixed interest rates. This is ideal if you really wish to get rid of your debt soonest. You know what you ought to pay every month for the loan so you know how much should be budgeted for that. Otherwise, if you feel that getting a loan is not effective for you, consider other options such as debt consolidation or balance transfer.
It may feel that you have just saved yourself from debt due to your holiday expenses after getting an approved loan, but the truth is, you are only making it easier to pay off your monthly dues and you are still in debt. So, when the holiday season comes, you know better what to do with your expenses.