In the United States, more credit scores means higher opportunities. You are considered lucky if you obtain and maintain high credit scores compared to those who have incurred no credits at all. It is a popular belief that having high credit scores denotes to being fully responsible with handling your finances. Moreover, good credit scores also equates to keeping up your integrity. To sum it all, high credit score equals good reputation.
Who do not want to earn a good reputation? If you are most likely to apply for any credit program and you wish to see an “approved” mark on your application sheet, then you must avoid the following:
1. No Credit Score.
Having no credit score at all denotes that lending institutions will not have any basis on how you handle your finances even if you are good at it. The credit scores are lending institutions determinant to get you approved with your credit request since they cannot gauge your financial history through:
? Race and origin. Lending institutions will not approve your credit request because you are white or black or you are from the United States or from the European countries.
? Type of employment and salary. Even if you are a janitor and yet incurred high credit scores, then your loan application might be approved over a company manager who has zero credit score.
? Education. Whether or not you have obtained a college degree it does not matter, what matters is a high credit score.
Lending institutions cannot measure approval of your credit request into your religion, age and marital status. This is due to its being subjective. The Equal Credit Opportunity Act sees that the most objective determinant is through looking at credit scores.
Through credit scores, lending institutions will get familiar with your financial background. They will find out the previous and present loans you have, the down payments you have doled out, the interest rates you choose, and most importantly the payment scheme that you have established.
2. Low credit scores.
The average credit score in US is somewhere between 580 and 650. There are major institutions in the US who determines if you are suitable to be given credit. Equifax, Trans Union and Experian are major institutions who compute for borrower’s credit score. All three have their own distinct computing system yet still adheres with the national average credit score.
If your credit score falls below the standard credit score, then you are highly prone to seeing your credit applications with “disapproved” marks.
Having credit is not bad after all; it will look appalling if you have been immature on handling such matters. A credit card may be handy for most of the time especially when cash is not readily available. Additionally, others find credit cards safe to bring than stocking cash in your wallet.
Loans, on the other hand are equally important as credit cards especially for those individuals who aspire to have properties which they cannot immediately pay.
With the significance of having cash substitute in the form of credits, it is helpful to get good if not high credit scores. There is nothing wrong with getting high credit scores; all you need to do is be responsible in handling your finances. By doing so, credit will not be a nuisance but will serve as a great aid to you.
Like this article? The Importance of Average Credit Score in US
Showing posts with label Finances. Show all posts
Showing posts with label Finances. Show all posts
Tuesday, March 30, 2010
Friday, May 15, 2009
Money Doesn't Finance Dreams
Are you putting off your dreams until you have money? Well, each day that you put off your dreams, you lose a little bit of time for that dream.
Have you made choices that although made everyone else happy, left you feeling empty and incomplete? Maybe you used your lack of money as an excuse, so that you wouldn't feel bad about not pursuing your dreams. But the truth is money is never a hindrance. It is used as a crutch because it is much easier to say money is the problem, than to admit that you are the only obstacle standing in the way of your dreams.
The beauty of dreams is that they are free. When you hold off on your dreams, it costs so much more. You live wondering what if you had made those choices, how would your life be if you had achieved those goals? Right now, think of the one dream that you are holding on to for dear life; what is your #1 excuse for not doing it?
If you want to go back to school, you can look for scholarships and financial aid. You can even take distant learning courses, so you don't even have to leave home. If you want to start a business, there are many free resources online that show you how you can start with no money involved. If you want to pursue a hobby full-time, you can research to find others that are doing the same thing and ask them for help.
Money is not the real obstacle or the driving force to your dreams. The excuses you make just covers up what lies deep within, which is fear and doubt. You anticipate failure or challenges, so you don't bother pursuing your dreams. You let go of your dreams and give up.
You can not feel fulfilled in life unless you are living a self- actualized life. Living your dreams makes your life authentic. Stop using money as a reason for you not to be where you were meant to be in your life. Why settle for small accomplishments, when you can live a life of greatness? You can do a lot of things with money, but you can't buy your dreams. Take one step today towards your dreams; don't worry it won't cost you a thing.
About the Author
Marie Magdala Roker is a Personal Development Coach an Author of Successful Thinking for a Successful Life: How to Banish the Unhealthy Thoughts and Habits That Limit Your Success.
You can find out her ebook and coaching program at http://www.thinkandbesuccessful.com>http://www.thinkandbesuccessful.com
Written by: Marie Magdala Roker
Men, Women and Their Finance
What do you worry about most when it comes to your finances and debt or your credit card repayments? It seems that men and women have different outlooks and think differently about their finances. A survey was carried out to see whether men and women thought differently or the same about their finances.
Women tend to look at their current levels of debt while men tend to look to the future and are more likely to plan ahead when it comes to their finances. Women worry more about how they are going to pay off all their current credit card bills, store cards and loans along with their mortgage, shopping and living expenses with three quarters of women doing so, meanwhile less than 50% of men worry about the same thing. Only 13% of men know what their current debt levels are.
While men are laid back about their current debt levels they are better prepared for the future. Men are better at investing their money with half of all men investing in an ISA while only 35% of women are doing the same. Only five out of ten of women have a savings account with men in the lead with six out of every ten. Three quarters of men are paying into a pension for when they retire while only half of women are preparing for their retirement.
The only things that were found to be very little difference in when it came to our finances was the fact that both men and women have little knowledge of credit reports and how they work, although we think we do. Three quarters of men and women said they new what affected credit scores and how companies make their decision but nearly all got at least one question wrong when asked about credit reports. Only 5% of men and women have inspected their credit report in the last year.
1 in 4 of people asked did not realize that late payments affected your score; just over 40% of people did not know that if you have asked for credit regularly then this can also affect your credit score. Three quarters of people wrongly thought that if you had unpaid household bills that this would affect a decision made by lenders. Unbelievably, 60% of men and 67% of women thought that credit reference agencies make the decisions about credit applications, whereas it is the credit card companies, banks and other lenders that make the decision.
Knowing your credit score and understanding how credit scoring works is the only way to fully know where you stand financially and help you make better decisions about how and when you apply for credit.
About the Author
Joseph Kenny is the webmaster of the UK credit card comparison site http://www.creditcards121.com/, where you can find a selection of interest free credit cards. For US visitors there is also the comparison site http://www.credit-cards-info.com
Written by: Joseph Kenny
Women tend to look at their current levels of debt while men tend to look to the future and are more likely to plan ahead when it comes to their finances. Women worry more about how they are going to pay off all their current credit card bills, store cards and loans along with their mortgage, shopping and living expenses with three quarters of women doing so, meanwhile less than 50% of men worry about the same thing. Only 13% of men know what their current debt levels are.
While men are laid back about their current debt levels they are better prepared for the future. Men are better at investing their money with half of all men investing in an ISA while only 35% of women are doing the same. Only five out of ten of women have a savings account with men in the lead with six out of every ten. Three quarters of men are paying into a pension for when they retire while only half of women are preparing for their retirement.
The only things that were found to be very little difference in when it came to our finances was the fact that both men and women have little knowledge of credit reports and how they work, although we think we do. Three quarters of men and women said they new what affected credit scores and how companies make their decision but nearly all got at least one question wrong when asked about credit reports. Only 5% of men and women have inspected their credit report in the last year.
1 in 4 of people asked did not realize that late payments affected your score; just over 40% of people did not know that if you have asked for credit regularly then this can also affect your credit score. Three quarters of people wrongly thought that if you had unpaid household bills that this would affect a decision made by lenders. Unbelievably, 60% of men and 67% of women thought that credit reference agencies make the decisions about credit applications, whereas it is the credit card companies, banks and other lenders that make the decision.
Knowing your credit score and understanding how credit scoring works is the only way to fully know where you stand financially and help you make better decisions about how and when you apply for credit.
About the Author
Joseph Kenny is the webmaster of the UK credit card comparison site http://www.creditcards121.com/, where you can find a selection of interest free credit cards. For US visitors there is also the comparison site http://www.credit-cards-info.com
Written by: Joseph Kenny
Friday, April 24, 2009
How To Finance and build your Dream Home
If you have always dreamed of building and living in the home you've helped design, it's time to seriously consider putting your dream into action. In today's mortgage market, a specially designed loan for just such a homeowner, the construction to perm loan, includes the construction loan to build the house, and the permanent loan to purchase the home. Mortgage lenders used to offer this as a two part process, first financing the construction loan and building the house, then obtaining another mortgage to purchase the home. There were two closings, and two sets of closing costs with this type of loan. The construction-to-permanent loan allows for one application process, one closing, and one set of closing costs and is simpler, cost-effective, and less stressful for the applicant. Some construction to perm loans allow custom building of a home with an adjustable low payment during the construction process. For those who may have purchased a piece of land, or intend to buy a piece of land then build on it, this informational article will show you how to finance the custom built home before it's built. When choosing a lender and a builder, take the time to find viable partners in your custom building project who share your vision for your dream.
Lots for Building Custom Homes It is often best to select a finished lot. This means the lot is equipped with water and sewage systems, electricity, and road access. The lot should also be recognized as a single piece of land and have a boundary designation recorded with the county or city.
Finance Your Custom Built Home with a Mortgage Broker Breakwater Mortgage, in Virginia Beach and Williamsburg Virginia, is a Mortgage Broker. Mortgage Brokers have a wider variety of loan programs for consumers to select from. Visit a mortgage broker for the most competitive deals on a construction to perm loan. The lender will want to investigate if the land is appropriate for building by reviewing the land survey and building plans first. They will also check to see if the contractor is on the approved list of builders. If not, the selected builder will have to submit an application to become one.
Select the Builder of Choice for Your Custom Built Home Many of the larger name builders are already approved for many lenders. Ask the lender if your builder is approved. If not, most private builders and architects can easily apply through lenders. Each lender has different criteria for builders. If the homeowner is not satisfied with the builder they have selected, many loan programs allow them to fire the builder and begin with another approved builder. This gives the homebuyer power over their own destiny during the custom building and construction process.
Consumer Highlights for Construction to Perm Loans Construction to Perm Mortgages are written for primary and secondary homes. They are not allowed for investment property. Construction to Perm mortgages are not written for modular, pre-fabricated, or manufactured homes, either. One unit is allowed per mortgage. The construction term of the loan is from six months to 12 months, with exceptions up to 18 months on some products. Ask your mortgage loan officer about subordinate financing. There are also creative financing options available for homebuyers who want to put the minimum down and pay a low interest only payment while the house is being custom built.
Lender Requirements for Construction to Perm Financing Lenders require standard credit documentation and high credit scores for construction to perm financing. Lenders also request: 1. Final plans and specifications (needed to obtain appraisal) 2. Purchase contract for lot (or settlement statement if already purchased) 3. Property profile (a description of materials for custom building). 4. Line item cost breakdown from the builder 5. The builder's construction contract 6. A copy of the builder's license 7. The builder's statement or application (showing the company as approved or applying to be approved to build a home). In addition to these documents, it is essential that the homeowner obtain the necessary permits to build in the community.
Benefits of Construction to Perm Financing Construction to Perm loans are a single close loan, and the consumer obtains financing before construction. This gives the homeowner cash to pay the builder and complete the construction. Construction to Perm is a fully amortized loan. Nothing changes in the term - it's one mortgage. One of the greatest advantages to the homebuyer with this type of home financing is some lenders allow interest only payments while the home is under construction. This gives the homebuyer a low payment option in the beginning while living somewhere else. Once the home is occupied, the mortgage payments are changed to principal and interest payments.
Financial Suitability for Custom Built Homes High credit scores are important to lenders for construction to perm mortgages. Liquid assets are also carefully scrutinized. For homebuyers interested in construction to perm financing, the lender will look for adequate savings to pay for the mortgage during the construction period of the loan.
Down Payment Expect a 3-10% down payment to be required, depending upon the loan amount for the construction to perm financing. Smaller pieces of land or smaller loan amounts will require a lower down payment.
From the vantage point of the loan officer, construction to perm loans are a win-win situation. The homebuyer is purchasing a loan they feel comfortable with. They have a reasonable payment during construction, and business with the lender is concluded at the time the loan is made. This type of loan allows the person building their custom dream home to take control over their biggest asset during the most critical phase: construction. With financing in place, the borrower can make sure the final product is exactly what they want it to be.
About the Author
Sherry Guard worked at Beneficial Finance as a loan officer prior to joining the Breakwater Mortgage team. Sherry has an honest and straightforward business style. She believes in treating her clients with the integrity she would expect in any business transaction. E-mail Sherry at sherry@breakwatermortgage.com or visit http://www.breakwatermortgage.com.
Dan Wood is a Managing Director and Sales Manager at Breakwater Mortgage. He has been a
Written by: Dan Wood and Sherry Guard
Lots for Building Custom Homes It is often best to select a finished lot. This means the lot is equipped with water and sewage systems, electricity, and road access. The lot should also be recognized as a single piece of land and have a boundary designation recorded with the county or city.
Finance Your Custom Built Home with a Mortgage Broker Breakwater Mortgage, in Virginia Beach and Williamsburg Virginia, is a Mortgage Broker. Mortgage Brokers have a wider variety of loan programs for consumers to select from. Visit a mortgage broker for the most competitive deals on a construction to perm loan. The lender will want to investigate if the land is appropriate for building by reviewing the land survey and building plans first. They will also check to see if the contractor is on the approved list of builders. If not, the selected builder will have to submit an application to become one.
Select the Builder of Choice for Your Custom Built Home Many of the larger name builders are already approved for many lenders. Ask the lender if your builder is approved. If not, most private builders and architects can easily apply through lenders. Each lender has different criteria for builders. If the homeowner is not satisfied with the builder they have selected, many loan programs allow them to fire the builder and begin with another approved builder. This gives the homebuyer power over their own destiny during the custom building and construction process.
Consumer Highlights for Construction to Perm Loans Construction to Perm Mortgages are written for primary and secondary homes. They are not allowed for investment property. Construction to Perm mortgages are not written for modular, pre-fabricated, or manufactured homes, either. One unit is allowed per mortgage. The construction term of the loan is from six months to 12 months, with exceptions up to 18 months on some products. Ask your mortgage loan officer about subordinate financing. There are also creative financing options available for homebuyers who want to put the minimum down and pay a low interest only payment while the house is being custom built.
Lender Requirements for Construction to Perm Financing Lenders require standard credit documentation and high credit scores for construction to perm financing. Lenders also request: 1. Final plans and specifications (needed to obtain appraisal) 2. Purchase contract for lot (or settlement statement if already purchased) 3. Property profile (a description of materials for custom building). 4. Line item cost breakdown from the builder 5. The builder's construction contract 6. A copy of the builder's license 7. The builder's statement or application (showing the company as approved or applying to be approved to build a home). In addition to these documents, it is essential that the homeowner obtain the necessary permits to build in the community.
Benefits of Construction to Perm Financing Construction to Perm loans are a single close loan, and the consumer obtains financing before construction. This gives the homeowner cash to pay the builder and complete the construction. Construction to Perm is a fully amortized loan. Nothing changes in the term - it's one mortgage. One of the greatest advantages to the homebuyer with this type of home financing is some lenders allow interest only payments while the home is under construction. This gives the homebuyer a low payment option in the beginning while living somewhere else. Once the home is occupied, the mortgage payments are changed to principal and interest payments.
Financial Suitability for Custom Built Homes High credit scores are important to lenders for construction to perm mortgages. Liquid assets are also carefully scrutinized. For homebuyers interested in construction to perm financing, the lender will look for adequate savings to pay for the mortgage during the construction period of the loan.
Down Payment Expect a 3-10% down payment to be required, depending upon the loan amount for the construction to perm financing. Smaller pieces of land or smaller loan amounts will require a lower down payment.
From the vantage point of the loan officer, construction to perm loans are a win-win situation. The homebuyer is purchasing a loan they feel comfortable with. They have a reasonable payment during construction, and business with the lender is concluded at the time the loan is made. This type of loan allows the person building their custom dream home to take control over their biggest asset during the most critical phase: construction. With financing in place, the borrower can make sure the final product is exactly what they want it to be.
About the Author
Sherry Guard worked at Beneficial Finance as a loan officer prior to joining the Breakwater Mortgage team. Sherry has an honest and straightforward business style. She believes in treating her clients with the integrity she would expect in any business transaction. E-mail Sherry at sherry@breakwatermortgage.com or visit http://www.breakwatermortgage.com.
Dan Wood is a Managing Director and Sales Manager at Breakwater Mortgage. He has been a
Written by: Dan Wood and Sherry Guard
Tuesday, April 21, 2009
How To Finance a Business for Your Children
First, how not to go about it:
A cash loan is not the way to go.
Neither is signing as surety for a bank loan
A gift of the amount required? Again, not the best approach
But these are the three most common but wrong ways by which parents try to help their children get started in business.
So what is the best way?
For US residents and citizens, Internal Revenue Code 1244 provides the answer.
If you give your daughter $50,000 say to start a new venture, and the business goes belly up with the loss of the $50,000, there is no way that the IRS will allow you to claim this loss as a deduction.
Or suppose you loan her business $50,000. Again, if things do not work out, the business will keep paying you the interest until it runs out of cash, leaving you with a worthless note.
Tax-wise, you have a capital loss, which is deductible at the pitiful rate of only $3,000 per year against your ordinary income. Or you can use the loss to offset capital gains.
The same sad tax fate, a capital loss, results if you sign as surety and must pay Sue's $50,000 loan from the bank.
Tax-wise, a gift to your daughter is even worse. The $50,000 is hers. As a result, the tax loss is hers, not yours. Under the circumstances, chances are that Sue has little or no income, and the loss is almost totally wasted.
Note too that a loan or a bank surety is often questioned by the IRS. Why? The IRS contends that the $50,000 was a gift because you never intended to try to collect in the first place. You had no reasonable expectation of being repaid is the way the IRS puts it.
But now let's look at IRS Section 1244 - the right way.
Section 1244 allows you to claim an immediate deduction for a loss on stock in a small business corporation. Your loss is fully deductible against ordinary income, rather than a limited capital loss.
And you can claim a maximum Section 1244 loss of $100,000 (joint return) in a single year or $50,000 on a single return
The maximum amount you can claim as a Section 1244 loss in a single year is $100,000 on a joint return or $50,000 on a single return.
So instead of a gift, a loan or a bank surety, you and your daughter set up a corporation for her new business. You get $50,000 of stock in the corporation that qualifies for Section 1244 treatment. Your daughter, who runs the business, draws a salary
If the business succeeds, your daughter can gradually buy back your stock (or, better yet, you can gift it to her) over time. Any profit you make on the buyback will be a low-taxed capital gain.
If the business fails, your loss will be fully deductible under Section 1244 (up to the $100,000/$50,000 limits).
Here's another nice thing about Section 1244: The tax benefits are easy to get. The beneficial tax treatment is automatic and no written plan is necessary.
A final point: Section 1244 is the way to go not only for your kids, but also for your spouse who might want to start a new business. And the same strategy applies if you want to venture into something new while keeping your present business.
SEO Solutions and one-way link publicity services provided by Link Acquire.
David C Skul - CEO
LinkAcquire.com
and Relativity, Inc. can provide global market exposure and solutions.
About the author:
None
Written by: David C. Skul
A cash loan is not the way to go.
Neither is signing as surety for a bank loan
A gift of the amount required? Again, not the best approach
But these are the three most common but wrong ways by which parents try to help their children get started in business.
So what is the best way?
For US residents and citizens, Internal Revenue Code 1244 provides the answer.
If you give your daughter $50,000 say to start a new venture, and the business goes belly up with the loss of the $50,000, there is no way that the IRS will allow you to claim this loss as a deduction.
Or suppose you loan her business $50,000. Again, if things do not work out, the business will keep paying you the interest until it runs out of cash, leaving you with a worthless note.
Tax-wise, you have a capital loss, which is deductible at the pitiful rate of only $3,000 per year against your ordinary income. Or you can use the loss to offset capital gains.
The same sad tax fate, a capital loss, results if you sign as surety and must pay Sue's $50,000 loan from the bank.
Tax-wise, a gift to your daughter is even worse. The $50,000 is hers. As a result, the tax loss is hers, not yours. Under the circumstances, chances are that Sue has little or no income, and the loss is almost totally wasted.
Note too that a loan or a bank surety is often questioned by the IRS. Why? The IRS contends that the $50,000 was a gift because you never intended to try to collect in the first place. You had no reasonable expectation of being repaid is the way the IRS puts it.
But now let's look at IRS Section 1244 - the right way.
Section 1244 allows you to claim an immediate deduction for a loss on stock in a small business corporation. Your loss is fully deductible against ordinary income, rather than a limited capital loss.
And you can claim a maximum Section 1244 loss of $100,000 (joint return) in a single year or $50,000 on a single return
The maximum amount you can claim as a Section 1244 loss in a single year is $100,000 on a joint return or $50,000 on a single return.
So instead of a gift, a loan or a bank surety, you and your daughter set up a corporation for her new business. You get $50,000 of stock in the corporation that qualifies for Section 1244 treatment. Your daughter, who runs the business, draws a salary
If the business succeeds, your daughter can gradually buy back your stock (or, better yet, you can gift it to her) over time. Any profit you make on the buyback will be a low-taxed capital gain.
If the business fails, your loss will be fully deductible under Section 1244 (up to the $100,000/$50,000 limits).
Here's another nice thing about Section 1244: The tax benefits are easy to get. The beneficial tax treatment is automatic and no written plan is necessary.
A final point: Section 1244 is the way to go not only for your kids, but also for your spouse who might want to start a new business. And the same strategy applies if you want to venture into something new while keeping your present business.
SEO Solutions and one-way link publicity services provided by Link Acquire.
David C Skul - CEO
LinkAcquire.com
and Relativity, Inc. can provide global market exposure and solutions.
About the author:
None
Written by: David C. Skul
Sunday, April 5, 2009
Getting Your Finances Ready for a SSD case II
Why is it important to anticipate financial hardships? This is because it is arduous to live for two and a half years, sometimes more, with no income and means of support. It can happen that before a judge get to decide the case, claimants do not have penny left. Another reason is to allow claimants to plan and minimize or avoid financial loss.
Planning ahead financially is a crucial step that you should take in pursuing a Social Security Disability case. A claimant has no idea up to when the claim will last. An Initial claim may develop into a series of reconsideration or appeal and it will take a longer time so he better prepare his finances to avoid being left broke or homeless due to foreclosure or eviction order.
To avoid insolvency or financial drain in the process of your claim, you should avoid incurring additional debts and obligations. These may accumulate interest and may add to your financial burdens. Try to look also for some ways to minimize your obligations and financial burdens. In some instances specified by the law, claimants are allowed to work to sustain your expenses. You may also consider restructuring your debts and obligations to make surviving the disability process more likely. You can consider these choices at any level of your social security disability case.
A sad but very common scenario is where a claimant, after several months have passed, gets a denial letter. Then he filed an appeal and wait a little more. Once a gain, he received a denial letter though it stated that an appeal may be filed and this time it involves a hearing before an administrative law judge. The hearing was then set. Unfortunately it doesn’t end there. After the hearing, a number of weeks or even months shall be waited before a decision is promulgated. And even if the approval was granted many weeks more before benefits are made available. Availability depends also if the system in a particular state of residence, is clogged or not. It may take up to two and a half years before disability benefits are ever received.
Most of the claimants are shocked to know the lengthy process of a claim. Unfortunately, only a few know this blatant reality. Claimants only realize this when their finances are already at minimum or worse. Too late though, but the only bright spot is that the amount they received in due benefits can cure their situation.
About the Author
For questions, comments and additional info about the articles visit http://www.socialsecuritylawattorney.com
Written by: Maricon Williams
Planning ahead financially is a crucial step that you should take in pursuing a Social Security Disability case. A claimant has no idea up to when the claim will last. An Initial claim may develop into a series of reconsideration or appeal and it will take a longer time so he better prepare his finances to avoid being left broke or homeless due to foreclosure or eviction order.
To avoid insolvency or financial drain in the process of your claim, you should avoid incurring additional debts and obligations. These may accumulate interest and may add to your financial burdens. Try to look also for some ways to minimize your obligations and financial burdens. In some instances specified by the law, claimants are allowed to work to sustain your expenses. You may also consider restructuring your debts and obligations to make surviving the disability process more likely. You can consider these choices at any level of your social security disability case.
A sad but very common scenario is where a claimant, after several months have passed, gets a denial letter. Then he filed an appeal and wait a little more. Once a gain, he received a denial letter though it stated that an appeal may be filed and this time it involves a hearing before an administrative law judge. The hearing was then set. Unfortunately it doesn’t end there. After the hearing, a number of weeks or even months shall be waited before a decision is promulgated. And even if the approval was granted many weeks more before benefits are made available. Availability depends also if the system in a particular state of residence, is clogged or not. It may take up to two and a half years before disability benefits are ever received.
Most of the claimants are shocked to know the lengthy process of a claim. Unfortunately, only a few know this blatant reality. Claimants only realize this when their finances are already at minimum or worse. Too late though, but the only bright spot is that the amount they received in due benefits can cure their situation.
About the Author
For questions, comments and additional info about the articles visit http://www.socialsecuritylawattorney.com
Written by: Maricon Williams
Friday, March 27, 2009
Family Finances
One of the hardest things that young couples report during their first year of marriage is getting to grips with joint finances. While most are willing to share what they have with their partner, they are not sure on the best way to bring this sharing into effect so that they can share with their new partner, but at the same time maintain financial security and a degree of independence. Some couples resolve this by resorting to separate finances and others find a way to keep things together, but it is generally reported as one of the biggest strains on newly married couples.
As well as this, there is also the problem that many people find it difficult to budget and control their finances. It is one thing to fail to keep track of expenditures when you are single, but when you are married you have more to answer to than just yourself. This is especially true once you have children. If one partner fails to keep control of their spending while the other is forced to worry about finances, it can create an enormous strain on the relationship.
Family Budget
One of the best answers to this dilemma is to create a family budget. This should outline what is allowed for the various expenses, which is to be responsible for what expenses and how much each partner can spend on discretionary expenses. While this may seem like a drastic response that takes away all the responsibility and financial independence from both partners, all it is really doing is getting both parties to sit down together beforehand and work out how much they can afford to spend on what, and then sticking to this. It is about being in control of your expenses rather than letting them have control over you.
Other ways of taking care of difficulties between married couples is to divide out the family expenses depending on how much each partner earns. This way both will feel responsible for the security of the family and will feel like they are an important contributor to the family finances.
Financial Matters
While each partner should have a degree of financial freedom, and also privacy, finances should be discussed openly and with without shame. Past debts or mistakes that one party has made should be put in the past and should be forgotten. At the same time, if one partner shows that they are unable stick to the budgets they have agreed, their financial freedom will have to be taken from them and they should be given a tight leash in financial matters.
About the author:
Joseph Kenny is the webmaster of the UK credit card comparison site http://www.creditcards121.com/, where you can find a selection of credit card articles. He also writes for the comparison site http://www.cardguide.co.uk which offers some best credit cards in the UK.
Written by: Joseph Kenny
Hey check this out. This guy makes $500 a day online by not doing much and
he’s is giving away his website which apparently makes him $40,000 a month!
He’s got pictures of his Porsche and Range Rover on his website. The guys
seems loaded.
I got more info of him on my blog below, check it out
As well as this, there is also the problem that many people find it difficult to budget and control their finances. It is one thing to fail to keep track of expenditures when you are single, but when you are married you have more to answer to than just yourself. This is especially true once you have children. If one partner fails to keep control of their spending while the other is forced to worry about finances, it can create an enormous strain on the relationship.
Family Budget
One of the best answers to this dilemma is to create a family budget. This should outline what is allowed for the various expenses, which is to be responsible for what expenses and how much each partner can spend on discretionary expenses. While this may seem like a drastic response that takes away all the responsibility and financial independence from both partners, all it is really doing is getting both parties to sit down together beforehand and work out how much they can afford to spend on what, and then sticking to this. It is about being in control of your expenses rather than letting them have control over you.
Other ways of taking care of difficulties between married couples is to divide out the family expenses depending on how much each partner earns. This way both will feel responsible for the security of the family and will feel like they are an important contributor to the family finances.
Financial Matters
While each partner should have a degree of financial freedom, and also privacy, finances should be discussed openly and with without shame. Past debts or mistakes that one party has made should be put in the past and should be forgotten. At the same time, if one partner shows that they are unable stick to the budgets they have agreed, their financial freedom will have to be taken from them and they should be given a tight leash in financial matters.
About the author:
Joseph Kenny is the webmaster of the UK credit card comparison site http://www.creditcards121.com/, where you can find a selection of credit card articles. He also writes for the comparison site http://www.cardguide.co.uk which offers some best credit cards in the UK.
Written by: Joseph Kenny
Hey check this out. This guy makes $500 a day online by not doing much and
he’s is giving away his website which apparently makes him $40,000 a month!
He’s got pictures of his Porsche and Range Rover on his website. The guys
seems loaded.
I got more info of him on my blog below, check it out
Thursday, March 26, 2009
Don't Let Finances Rule Over Your Self-Esteem
I know a barber who had the opportunity of buying one of the oldest and best barbershops in his city. He had worked there for a few years, and knew it was a good investment. So, he made arrangements with the owner, and took the plunge.
However, it wasn’t long before he realized he was in serious financial difficulty. Actually, he was in trouble before the purchase of the shop, and the added debt put him in way over his head.
Prior to obtaining the barbershop, this fellow had several bad business ventures. They were all legitimate. Just bad choices! Generally, they all involved selling, in which he was not exactly a shining star. Oh, he did manage to sell a few things such as his house and his car. It was not quite that bad, but almost.
About the same time as the business failures and the purchase of the barbershop, his wife and two daughters were in college. So the debts really began to pile up, as the pressure became intolerable. Also, fatigue set in because of the three jobs he was working so that he could continue to tread water.
The barber/entrepreneur did a couple of things he thought might relieve some immediate pressure. He borrowed on credit cards and from the Internal Revenue Service (by not paying estimated taxes). Eventually everything started to come apart, as the IRS threatened a tax lien.
For lunch one Saturday the barber’s family came to his shop after hours, as they often did. He was so overcome with worry and stress that he verbally threw them out. Then he went home, closed his bedroom door and considered how he might end his life without destroying his family or disappointing his God. As it turned out, only thoughts of God and family keep him from doing the unthinkable.
As you might guess, I know the fellow’s story so well because I’m the fellow. Today, I’m pleased to say that, because I obtained the help I needed emotionally and financially, I’m well on the way to being completely debt free in few years (except for a home mortgage). And, I lead a happier, fuller life than ever. However, I’ve been left with some lessons I’ll never forget.
The first lesson is: “Debt robs a man of his self-respect, and makes him almost despise himself.” (P.T. Barnum). Thus, there’s a need to use credit wisely. Self-esteem is at stake. And, while you might buy things on credit that you can’t afford, because it temporarily lifts your spirits or gives you something to show to others, it’s not worth the shame and loathing when debt becomes overwhelming. Learn to live within your means even if it involves doing without!
The second lesson is how a loss of respect due to financial woes affects one’s attitude toward others. Sherry can always tell when I’m not happy with myself. That’s when I’m unkind to her. I’m the same way with customers. In fact, there’s no telling how much business I ran off while I was drowning financially and emotionally. I could easily have lost both my family and my business.
The third lesson I will pass along is that “…there is more satisfaction in rational saving, than in irrational spending.” (P.T. Barnum). As per the financial advice I received for turning our circumstances around, Sherry and I began a consistent, well-planned investment, retirement program. That, combined with the fact that the barbershop is now paid for, is very satisfying. It’s much more satisfying than new, showy things that we don’t need or can’t afford. I’m no longer interested in a big hat. I want the cattle!
Lesson number four is to learn from others. Experience (the school of hard knocks) is a great teacher, but not the best. That’s because much of its value is lost in the time it takes to learn the lessons. Time-tested principles are the best teachers, and they can be discovered in writings, seminars, counseling and advice from those who have been there.
Yet, it still takes time to learn these things. And, as John Wayne said, “We’re burnin’ daylight.”
BARBER-OSOPHY: Control your money or it will control you.
Copyright 2004, Sumerlin Enterprises.
Permission is granted for you to copy this article for distribution as long as the above copyright and contact information is included. Please reference or include a link to www.barber-osophy.com.
About the Author
Terry L. Sumerlin, known as the Barber-osopher, is the author of "Barber-osophy," is a columnist for the San Antonio Business Journal and speaks nationally as a humorist/motivational speaker.
Written by: Terry L. Sumerlin
However, it wasn’t long before he realized he was in serious financial difficulty. Actually, he was in trouble before the purchase of the shop, and the added debt put him in way over his head.
Prior to obtaining the barbershop, this fellow had several bad business ventures. They were all legitimate. Just bad choices! Generally, they all involved selling, in which he was not exactly a shining star. Oh, he did manage to sell a few things such as his house and his car. It was not quite that bad, but almost.
About the same time as the business failures and the purchase of the barbershop, his wife and two daughters were in college. So the debts really began to pile up, as the pressure became intolerable. Also, fatigue set in because of the three jobs he was working so that he could continue to tread water.
The barber/entrepreneur did a couple of things he thought might relieve some immediate pressure. He borrowed on credit cards and from the Internal Revenue Service (by not paying estimated taxes). Eventually everything started to come apart, as the IRS threatened a tax lien.
For lunch one Saturday the barber’s family came to his shop after hours, as they often did. He was so overcome with worry and stress that he verbally threw them out. Then he went home, closed his bedroom door and considered how he might end his life without destroying his family or disappointing his God. As it turned out, only thoughts of God and family keep him from doing the unthinkable.
As you might guess, I know the fellow’s story so well because I’m the fellow. Today, I’m pleased to say that, because I obtained the help I needed emotionally and financially, I’m well on the way to being completely debt free in few years (except for a home mortgage). And, I lead a happier, fuller life than ever. However, I’ve been left with some lessons I’ll never forget.
The first lesson is: “Debt robs a man of his self-respect, and makes him almost despise himself.” (P.T. Barnum). Thus, there’s a need to use credit wisely. Self-esteem is at stake. And, while you might buy things on credit that you can’t afford, because it temporarily lifts your spirits or gives you something to show to others, it’s not worth the shame and loathing when debt becomes overwhelming. Learn to live within your means even if it involves doing without!
The second lesson is how a loss of respect due to financial woes affects one’s attitude toward others. Sherry can always tell when I’m not happy with myself. That’s when I’m unkind to her. I’m the same way with customers. In fact, there’s no telling how much business I ran off while I was drowning financially and emotionally. I could easily have lost both my family and my business.
The third lesson I will pass along is that “…there is more satisfaction in rational saving, than in irrational spending.” (P.T. Barnum). As per the financial advice I received for turning our circumstances around, Sherry and I began a consistent, well-planned investment, retirement program. That, combined with the fact that the barbershop is now paid for, is very satisfying. It’s much more satisfying than new, showy things that we don’t need or can’t afford. I’m no longer interested in a big hat. I want the cattle!
Lesson number four is to learn from others. Experience (the school of hard knocks) is a great teacher, but not the best. That’s because much of its value is lost in the time it takes to learn the lessons. Time-tested principles are the best teachers, and they can be discovered in writings, seminars, counseling and advice from those who have been there.
Yet, it still takes time to learn these things. And, as John Wayne said, “We’re burnin’ daylight.”
BARBER-OSOPHY: Control your money or it will control you.
Copyright 2004, Sumerlin Enterprises.
Permission is granted for you to copy this article for distribution as long as the above copyright and contact information is included. Please reference or include a link to www.barber-osophy.com.
About the Author
Terry L. Sumerlin, known as the Barber-osopher, is the author of "Barber-osophy," is a columnist for the San Antonio Business Journal and speaks nationally as a humorist/motivational speaker.
Written by: Terry L. Sumerlin
Subscribe to:
Posts (Atom)