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Use the Start of the School Year to Set the Stage for Your Child’s Financial Success

By: Brittany Frost

Where did the summer go? As the school year rapidly approaches, children are preparing for the academic and social journey of the next grade level while parents are bracing their financial situation for the costs of continuing education. Parents can take this golden opportunity to go above and beyond just shopping for school supplies at Wal-Mart and, instead, show their children how to budget, save, and spend their money in order to teach them how to financially prepare for school (which will undoubtedly come in handy for college).

Alarmingly, a study released in July by the FINRA Foundation estimated that almost two-thirds of Americans couldn’t pass a basic financial literacy test, including calculating interest payments correctly (See Ref. 1). When you pair that with the fact that public, in-state college tuition, room, and board has risen 1300% since 1971 (See Ref. 2) and a recent survey showing that 75% of U.S. workers have student loan debt so high that they contribute less to their retirement (See Ref. 3), it is easy to see why parents must take every opportunity to educate themselves and their children so they do not end up in pools of unmanageable student loan debt. It is never too early to avoid the debt cycle and teach your children to financially prepare for school. Think about it: Did you or do you still struggle with enormous student loan debt? Did you avoid college altogether because you couldn’t afford it? Or did you have the financial means or knowledge to keep your student loan debt to a minimum? Either way, think of your financial mistakes, trials, and triumphs and use the start of this school year to teach your children everything you’ve learned about financially preparing for school. Use your experiences along with the following resources and ideas as motivation to set the stage for your child’s financial success or, perhaps, to change your own path.

So how can you do this? Include your child in the financial process of preparing for school. Sit down and discuss with them. Educate them on the difference between a “want” and “need” so they can decide what they need for school. Ask for their opinion and listen. Use free online budgeting tools available on www.christiancreditcounselors.com to set a budget together. Discuss and research ways to stick to that budget by using free resources such as Passionate Penny Pincher’s Free Back-to-School Cheat Sheet for a complete list of back-to-school deals. Record and track your spending. Make back-to-school shopping a learning experience through mathematical games. In “7 Smart Ways to Save on Back-to-School Clothing,” Deacon Hayes also suggests tips like assessing your child’s current school inventory, visiting thrift stores first, and adding in a fun but frugal activity such as stopping for an inexpensive lunch or treat to make back-to-school shopping a happy experience (See Ref. 4). Above all, just enjoy spending time and working toward your financial goals together as a family. By doing this, you will not just be buying more pencils and notebooks, but you will be setting the stage for the financial success of your children AND yourself. Here’s to a successful school year!

References

1.       Farber, Madeline. Fortune. Nearly Two-Thirds of Americans Can’t Pass a Basic Test of Financial Literacy. 12 Jul. 2016. http://fortune.com/2016/07/12/financial-literacy/

2.       Jacoby, Jeff. The Boston Globe. Making college ‘free’ will only make it worse. 13 Jul. 2016. 18-20. http://c.ymcdn.com/sites/www.ncher.us/resource/collection/6E4F0103-05C8-4F48-844E-BEEAC285C10B/db0714_2016.pdf

3.       O’Connell, Brian. The Street. 75% of U.S. Workers Say High Student Loan Debt is Crippling Their Retirement. 12 Jul. 2016. https://www.thestreet.com/story/13627148/2/75-of-u-s-workers-say-high-student-loan-debt-is-crippling-their-retirement-savings.html

4.       Hayes, Deacon. U.S. News Money. 7 Smart Ways to Save on Back-to-School Clothing. 15 Jul. 2016. http://money.usnews.com/money/blogs/my-money/articles/2016-07-15/7-smart-ways-to-save-on-back-to-school-clothing

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Thoughtful Money-Saving Ways to Celebrate Dad

Showing Dad you love him doesn’t have to mean sending him on an expensive golf vacation or buying him a new camera. The special day should be all about connecting with him, and there’s no better way to do so than by spending some quality time together. Here, we’ve rounded up meaningful activities you can do no matter where you live or what budget you have — all the activities are free or cost very little. Cheers to being fun and frugal with Dad!

Pack a Picnic
Picnics are for spending quality time with loved ones, and that certainly includes Dad. Take time to pack snacks you know he’ll like, and head to the park for a day of sun and making memories.
 
Play Tourist
Make like a tourist and see sights in your own city that you often overlook. If Dad grew up there, he might even share some stories of his younger days around the block.
 
Browse Books
Whether it’s at a local bookstore or public library, you two can get lost for hours surrounded by books. Discuss which genres are your favorites and why, buy one another a favorite book, or take home the same book so you can start your own book club for two.
 
Take a Cooking Class
Get ready to roll up your sleeves for some quality cooking time with Dad. Many culinary schools and even locals will open up their doors and homes to teach you how to make a delicious meal at a fair cost.
 
Play Mini Golf
He doesn’t have to be a big golfer (or a middle schooler) to appreciate the fun that comes with a good game of mini golf. Other similar and budget-friendly ideas include bowling or hitting the batting cages.
 
Watch Home Movies
Break out those VHS tapes collecting dust in your drawers and take a trip down memory lane by watching homemade movies with Dad. You’ll not only get to see how much you’ve changed, but you can also poke fun at Dad’s camera skills.
 
Tour an Art Gallery
You’d be surprised at how many art galleries — and even big museums — open their doors for free or offer discounts. Bond with Dad while strolling past beautiful paintings and sculptures.
 
Go For a Hike
There’s nothing like some fresh air and scenic views to enjoy the day. If Dad is someone who likes to hike a lot, ask him to take you on his favorite trail.
 
Go Wine Tasting
You don’t have to travel to the vineyards of Napa to enjoy some wine tasting with Dad. Do so right at home by looking up wine bars and clubs that typically offer samplings at an affordable cost.
 
Learn Your Family History
It’s not very often that we sit down with our parents to learn about their upbringings. Take this time to go through old family photos or mementos with Dad; ask him about his grandparents and to tell you all that he knows about your family’s genealogy.

By: http://www.popsugar.com/smart-living/Cheap-Father-Day-Ideas-30636652

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Managing Your Student Loans Wisely: A Great and Unique Gift for Mother’s Day

By: Brittany Frost

What greater gift is there than the joy of seeing your child become financially responsible and independent throughout and after their college years? If you are looking for a unique and great gift to give your mother on May 8th for Mother’s Day this year, consider the gift of managing your student loans wisely. Instead of spending money on the gift, you’ll be saving it. Managing your student loans during and after college can help you avoid extra costs and interest as well as reduce your overall debt. Saving money and achieving your financial goals is not only a great gift to the mothers who are able to contribute to their child’s education, but also for the mothers who so desperately want to help but don’t have the means to do so. Here are a few tips to manage your student loans wisely this Mother’s Day:

 

• Before you even take out a student loan, apply for as many scholarships and grants as possible. This alone can save you (and your mom) a lot of money. Visit your school’s website or www.studentaid.ed.gov to view federal grants and scholarships.

• If you still need a loan, research loan types and repayment plans to make an informed decision. In general, federal student loans can have more repayment options and lower interest rates than private student loans. For more information on federal student loans and repayment plans as well as budgeting resources and calculators, visit www.studentaid.ed.gov.

• Budget and plan ahead. For more help budgeting for your student loans, contact Christian Credit Counselors at www.christiancreditcounselors.org.

• Use other free resources. According to the recent article Baylor University Partners with iGrad to Implement Online Financial Literacy Education Initiative by Jo-Carolyn Goode, Baylor will team up with iGrad, a financial literacy leader, to offer interactive workshops about budgets, scholarships, student loans, applying for jobs to help students pay for school, and a seminar for seniors to discuss loan payment options after graduation through iGrad’s financial literacy platform. For more information, visit www.igrad.com.

• When repaying your loan, consider an automatic payment deduction to save money on your payment. Also, put as much money as you can toward your payments. Each extra dollar paid toward your student loan payment each month can help overall.

• Since it is tax season, remember that student loan interest is tax-deductible and there are credits and deductions for parents and students. According to the College Board in Danielle Douglas-Gabriel’s article in the Washington Post entitled Paying for college? Have student loans? Here’s what you need to know before filing your taxes, the average family saved about $1,460 in education credits and deductions in 2013. To research various options of increasing your savings through tax credits and deductions such as the American Opportunity Tax Credit and the Student Loan Interest Deduction, refer to www.irs.gov. See how much you can save!

By using these tips and managing your student loans responsibly, you will not only save money but you will provide valuable peace of mind for you and your mother. That’s something that you won’t be able to buy at the Hallmark store!

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Ditching Debt in the New Year

skTo learn Biblical answers to your financial questions, you can #AskChuck @AskCrown your questions by clicking here.

 

[column type=”two-thirds” fade_animation=”in” fade_animation_offset=”45px”]Dear Chuck:

I know that getting out of debt is a great New Year’s resolution (I’m willing to try that one again!) but do you have any advice on something else that I should prioritize?

Looking for a New Idea.

Dear New Idea,

First, Happy New Year! This is a great question since most resolutions involve getting in better shape physically or fiscally (financially — may be a better word here)!

My encouragement is to keep this as your top priority as it is likely the best financial move you can make. You should also work to establish an Emergency Savings account.[/column]

 

[column type=”one-third” fade_animation=”in” fade_animation_offset=”45px”]chuck-bentley[/column]

 

I have an idea that could kill two birds with one proverbial stone — this year get your taxes organized as quickly as possible so that you can file in January and put that money to work for you. The fact is, most of us are giving the government an interest free loan by having our withholding too high. We don’t realize that when we get that refund check, that money — which could have been working for you — has been sitting with Uncle Sam waiting for you to ask him to mail it back to you.

The average tax refund is more than $3,100, a good start on debt reduction in the New Years. You can file your taxes by mid-January, and if you file on-line, a refund won’t be far behind.

To get started, gather your tax records, and look through your finances for potential deductions. You can find some great tax tips from Crown here. One of the first decisions you need to make is whether you are a Do-It-Yourself tax preparers, whether you want to hire an accountant, or, like a good friend of mine in personal finance, do all of the above. You can save a little money by preparing your own taxes first and then having a professional take a look for a smaller fee. Your legwork can lead to savings.

With the help of tax filing software, filing your own taxes is a good idea if you keep good records and don’t have a complicated return. There are a number of good firms that help you to file on-line. We prefer 1040.com since we share the same values. But there are a number of others such as TurboTax, H&R Block or even an easy file process at IRS.gov.

Be aware that you will likely need to file a long form tax return if you’ve experienced a major life event, such as whether you got divorced or married, received an inheritance, came into some unexpected money, adopted a child or moved for work. File the long form if you own a business, have unusual deductions, or need to manage assets, especially if they are in multiple states.

Once you get your taxes filed and your refund is in your hand, if you have not previously tithed on this income, I recommend that you do so off your refund check. Then be sure to fully fund an emergency savings account, if you haven’t already. At Crown, we counsel people to first have an emergency fund of at least $1,000. If you need help in learning how to create a budget that includes tithing, click here, to see how to organize one.

But next, take that refund and get started on your resolution to get out debt. Try the debt snowball method and start by paying off the most expensive debt first. That is usually the credit card charging you the highest interest rate. Then work your way to the next debt using the money you are now saving by paying off the first debt completely. This will allow you to develop a snowball effect! Crown has many free resources to help you on your journey to becoming debt free, but if you need a debt management counselor to help you one-on-one, you can contact our friends at Christian Credit Counselors a non-profit organization that helps individuals consolidate and develop a plan to pay off your debt.

You’ll start your New Year better able to financially handle what comes next. It is certainly a guaranteed method to reduce stress!

 

Read more at http://www.christianpost.com/news/new-year-money-finances-debt-free-tax-refund-154178/#27TgH38iwppMJpKj.99

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14 Money-Saving Valentine’s Day Ideas!

Debt Free Valentine’s

Want to celebrate Valentine’s Day without going into debt? Think fun.

Some of the best gifts involve sharing time, along with a little thoughtfulness. And the memories last far longer than a dozen roses or a box of chocolates. Here are 14 ways to express your love on the 14th — or any other day for that matter.

For a spouse or significant other:

1. Time in a bottle:

Give your hardworking spouse a full day to do whatever he or she wants — or just to relax — no interruptions allowed. For him, that mean he gets to engage in his hobby, watch the game, play 18 holes or do absolutely nothing. For her, that might mean you feed and entertain the kids while she indulges in a good book, a bubble bath or a manicure. Announce your gift — along with your most heartfelt message of love and appreciation — in your best handwriting or play with various fonts on your home computer. Clean up an old wine bottle and insert the rolled-up message tied with a red bow.

2. Dining out:

Sure, you can take your loved one out to dinner, but that can get expensive. Instead, eat out — as in outdoors. A picnic in a park or at the beach will fill the bill. In frostier climes, set up a picnic blanket and basket at the dining room table, on the living room floor or in the middle of that king-size bed. Add a rose or two (rather than a dozen) for atmosphere.

3. New adventures:

Do something different. Go somewhere you’ve never been before, or “someplace you haven’t been in a while that’s special,” says John Gray, author of “Men Are From Mars, Women Are From Venus.” The site of your first date, for example. When you vary your routine, “that’s what creates the memory,” he says.

4. Surprise, surprise:

For guys that don’t normally cook, Gray says, your best attempt at a home-cooked meal can be a huge treat and doesn’t have to cost anything. Or hide a note under her pillow the night before or little notes around the house on the day, telling her what she means to you. Look at the little things. “What men don’t realize about Valentine’s Day is that it doesn’t have to cost a lot,” says Gray. “Little things make the difference. The surprise factor is nice, whenever possible,” Gray says.

5. Culture up:

Does your significant other delight in museums, foreign films or rare books? In most metro areas, you can find high-culture, low-dollar activities if you know where to look. (Start with the local paper, check online and you can even call the local library or cultural organizations for suggestions.) Many museums have free days. Movie houses have special times when tickets are heavily discounted. For the book lover, plan a trip to a rare book shop, and splurge for cappuccino and biscotti at a nearby coffee house.

For the parents:

6. Creature comforts:

For mom or dad it’s always a good idea to focus on the creature comforts. Let her sleep late and bring her coffee or orange juice and a simple breakfast in bed. “Some of the best stuff is free,” says Melina Bellows, author of “The Fun Book for Moms: 102 Ways to Celebrate Family,” and editor in chief of National Geographic Kids. Give dad or mom — especially if you have a single parent — the gift of an hour of “me-time” when they get home from work just to decompress, says Eric Stromer, author of “Do-It-Yourself Family: Fun and Useful Home Projects the Whole Family Can Make Together,” and host of HGTV’s “Over Your Head” and AOL’s “Do-It-Yourself with Eric Stromer.” “Try it Friday or Monday,” he says. If you know dad will retreat to his man-cave, post some kind of thank you note or affirmation there, just to let him know how much you appreciate his hard work.

7. Get techy wid it:

The perfect gift for parents from teens and college kids. “Offer to be mom’s tech concierge,” says Bellows. Teach her to text, or show her how to download music or movies. If she’s wanted to investigate social networking, introduce her to Facebook, and create (with her permission) a page for her, so that she can catch up with her high school and college friends. Or, if you have a few bucks, do the old mixed tape one better and load up her MP3 player with a playlist of music you know she’ll like.

8. Child labor:

Sure, you’re busy, but that doesn’t mean you can’t spend a little time making sure your parents know you love them. Make a book of coupons for your parents filled with jobs you promise to do for the week, month or year: things like shining dad’s shoes, washing mom’s car, watering the plants or even taking out the trash.

For the kids:

9. Cooking up some love:

Kids will remember the Valentine’s Day they baked cookies with mom or dad. With little kids, opt for something simple, like heart-shaped cookies. With older children, consider cupcakes with more elaborate Valentine’s Day decorations. Then turn off the TV one night and have family game time or story time. Get out the old favorites or create a few new ones.

10. Treasure of love:

Kathy Peel, author of “The Busy Mom’s Guide to a Happy, Organized Home,” suggests hosting a treasure hunt. “Post clues (pictures, rhymes or words) to direct family members from one location to another until they find their treasure: a small Valentine’s Day gift,” she says.

11. Get crafty:

Try a family craft project, says Stromer. “Nothing spells love more than a heart made out of balsa wood and hung on the front door,” he says. Balsa is inexpensive, easy to work with (you can often use tools that you already have), and available at local craft stores. Paint it, let it dry and display it prominently, says Stromer.

12. Start the day with love:

Celebrate with a Valentine’s Day breakfast, says Bellows. For a lot of families, the morning routine is hectic. So take some time on Saturday for a leisurely breakfast. Go for something traditional with a twist, like their favorite pancakes in heart shapes. Keep with the Valentine’s theme by using lots of strawberry or cherry syrup and whipped cream. And focus on the foods they really love.

13. Work together:

Take a few hours on Saturday to work together as a family on a project geared to the abilities of the kids. Build — or even just hang — a bird house. You can find kits in craft stores or if you’re not handy, take the children to pick out a seed ball. Then, together, select a spot where it can be seen from indoors and hang it. Not only do you help foster local wildlife (and help creatures during the cold winter months), you and your family get to enjoy a little bit of nature in your own backyard. Another thought: Make your own kite. A little newspaper (or other heavy paper or light cloth), some balsa wood (available at craft stores), string and poster paints can add up to a pretty fantastic kite. (Check Internet sites or children’s craft books at the library if you need examples or instructions.) See who can design the prettiest, fastest, most colorful or most unusual kite. You can display them in the kids’ rooms or around the house. Then on the first sunny, windy day, try them out.

For any situation:

14. Be a friend:

Know someone who’s alone? Set aside some time to share a meal, go on an outing, or swap recipes or gossip. It can cost virtually nothing, and you’ll likely gain a lot more than you give.

By: http://www.bankrate.com/finance/personal-finance/14-loving-but-inexpensive-valentine-gifts-1.aspx#ixzz3ywr2cEQv

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Credit Card – Avoiding the Debt Trap this Holiday Season

Gift Giving on Credit

Staying out of debt can be almost as difficult as paying it off especially when our emotions take over. After all, buying gifts for our loved ones during the holiday season is a very emotional purchase.

Preparing for gifting should begin way before the holiday season. In a survey conducted by The American Research Group, Inc., 2014 Christmas gift spending was up 8% over 2013 with an average of $861 spent per adult consumer. So what is the most efficient and painless way to save money for the holidays each year?

Budgeting for Gift Giving

Creating a management budget at the beginning of each year will ensure you achieve your financial goals, establish a savings, and have funds set aside for gifts and holidays throughout the year. First, calculate how much money you spend on the holidays annually and divide that by 12 months. This is how much money you will need to set aside in your monthly budget for holiday spending. There are many spending trackers and saving tools out there but sometimes its easiest to just create an envelope labeled holidays and put cash in it each month. This might seem like a tedious task, however when the time comes to buy gifts and holiday items throughout the year it will be nice to already have the cash available and not have to worry about denting your budget.

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    Fall Money Saving Tips

    Cutting Costs at Home

    There are many ways you can save money and have fun doing it this holiday season. Falling leaves and decomposing Jack-o-Lanterns are the perfect way to start a compost pile this fall. Starting now means you’ll be one step ahead when spring arrives.

    Make sure your roof is free of holes, destruction and critters; if it isn’t, repair the damage or shoo the animals away. Assess the gutters as well as the chimney. Nothing is worse than a cold, rainy winter inside the home without a fireplace. Repairing now helps ensure you don’t have any last minute problems during the winter.

    It’s also very important to weatherproof your home. Chances are, you’ll be using your heater this winter. Rather than lose all of that precious heat, weatherproof your windows, doors and anything else you can think of.

    Restock on winter essentials before they’re all snatched up. Coats, food, gloves and boots are some important winter items that disappear as it gets closer to December.

    Shopping on a Budget

    The holidays are almost upon us, and that means holiday shopping is close at hand. If you start shopping around in October and November, it will be a lot easier to pick up the perfect present than if you were to wait closer to Christmas time.

    So many fruits and vegetables come into season in the fall, so don’t forget to stock up. Not only will you get cheaper produce, but it will be nice and fresh. And as always, use coupons to save even more.

    Look out for fall and holiday deals and coupons. There’s something about the festive, fall season that puts stores in such a great mood. So many places are offering seasonal items for super cheap; it’d be a shame if you didn’t partake.

    Lowering Travel Expenses

    If you’ll be flying at some point during fall, purchase tickets in the middle of the week. Most sales occur Tuesday through Thursday, so when planning a trip buy on the less busy days.

    Compare round-trip flights to one-way flights. Sometimes flying round-trip isn’t necessarily the best deal. If you can save more on two tickets, take that deal.

    Luggage and travel accessories are going on sale during this time of the year. If you’re in need of a new suitcase, now’s the time to buy one for that vacation coming up.

    Your Entertainment Costs

    Bike riding is a great way to let off steam in the cool air, while also getting where you want to go! Exercising and saving money never felt so good.

    Take a walk with the family. Play board games with your kids and significant other by the fireplace instead of sitting in front of the TV. Find new and fun ways to spend time with those you love. Parks are also a great place to go; they’re usually free and offer many great family-friendly amusements.

    Harvest festivals, farmers markets, and city events are a super fun and cheap way to get outside as well. Pumpkin patches offer a great time for you and your kids, and spending time together is always a beautiful fall activity.

    Do you want to know more about debt and how you can make smart financial decisions now that will help you secure a more prosperous financial future? Sign up for our newsletter for monthly money tips.

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      Credit Cards: Considering Credit History

      Considering Your Credit cONSUMER-cREDIT

      Do you have credit card accounts that you don’t use? Are you thinking about closing these unused accounts to clean off the slate? Read this article to learn more about the effects of closed accounts on your credit history.

      A Fair Isaac representative reported that closing accounts does not directly hurt one’s credit score, regardless of whether it was closed by the cardholder or the credit grantor. That’s the good news. The other side of the story, and there is always another side, is that closing accounts indirectly affects your credit history and therefore, your credit score.

      Closing Credit Card Accounts

      Closing unused credit card accounts can increase one’s credit utilization ratio. Credit utilization is a measurement of the difference between one’s available credit and the amount being used. This figure is calculated by taking the sum of your credit card balances and dividing that by the sum credit card limits. One’s credit utilization ratio directly affects credit scoring. Simply put, the higher one’s credit utilization ratio the lower his or her credit score.

      How does this come into play with regards to cancelling unused credit cards? The unused credit cards have low utilization since the entire credit limit is available. This offsets the higher utilization that one’s other credit cards may have. Thus, it reduces one’s overall credit utilization ratio boosting his or her credit score.

      Putting that into perspective, let’s say you have a credit card with a $5,000 credit limit and another card with the same. That’s $10,000 of total credit limit. Now let’s say you spend $2,500 on one card and some minor purchases on the other, which you have paid off. Your total balance, or debt, is $2,500, which equates to a credit utilization of 25%. If you were to close the card with no balance, your overall credit limit would decrease to $5,000, which would in turn increase your credit utilization ratio to 50%.

      Considering Credit History

      Closing credit card accounts can also lower one’s credit score by reducing the credit history age. Credit age is essentially that. How old are your accounts? In the credit scoring world, the older the better. Age is one representation of stability. Since older is better when it comes to credit card accounts and credit scoring, if you’re thinking of closing old unused accounts, think again. These accounts can actually help your credit score. Keep in mind, however, the FICO score does take into account both closed and open accounts, and closed accounts can remain on a credit history report for up to a decade.

      Setting all that aside, if keeping credit card accounts open leaves an open door to more spending – close them! Better to be financially free of debt and its negative impact on your finances, which we all know can lead to increased stress. And, who needs that!?

      Do you want to know more about debt and how you can make smart financial decisions now that will help you secure a more prosperous financial future? Sign up for our newsletter for monthly money tips.

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        Financial Planning: A Dose of Truth and Grace

        shutterstock_55416607_montage

        Planning for a Financial Planner

        So you’re considering a financial plan! Perhaps your finances have told you that you need one. Planning with purpose for your financial future is a noble task. Sure many good things come to us in unexpected surprises, but planning for a good future, especially when it comes to finances, is a wise strategy indeed! You’re reading this article because financial planning interests or excites you, and just doing so is taking the first step.

         

        Financial planning is a well marked plan to thrive financially, and I don’t know anyone who doesn’t want a secure, successful financial portfolio. It’s never too late to start making changes and never too late to pursue financial freedom. The key is: start where you are. Don’t dwell on where you have been or the mistakes and poor choices that you may have made. Everyday is a fresh start to the life you want to live, to the best you yet!

        Your Dreams, Desires, and Goals

        You have dreams, desires and goals. Everyone does. But, not everyone lives in such a way as to see them come to pass. Why do some succeed where others fail? Why do some thrive while others seem to strive after the wind? Not all of life’s answers come sugarcoated and some pills are hard to swallow. But, taking in wisdom, advice and eating humble pie is good for us all. With humility comes honor, and sometimes taking a long, hard look at ourselves is truly a humbling endeavor.

        Finances are a major test and testimony of our maturity and level of personal responsibility. It’s important in the process of self-discovery to admit the truth about your behaviors and choices and the effects they have had on both your life and the lives of those you influence, whether for good or for bad. Be sure to give yourself a healthy measure of both truth and grace. As imperfect people, who make not so perfect choices, grace is something we all need.

        Consider Your Financial Peace

        Start today by considering who you are, who you want to be. Consider what your financial situation looks like and what you want it to look like. Consider what it will take to get you there. Look at the situation objectively. Keep negative thoughts and emotions at bay. You are strategizing, planning, preparing and leading. It takes a strong mind and a strong spirit to be a good leader. The first person you lead is always yourself. And the truth is, if you can’t lead yourself, you really can’t lead others, not well, anyway.Financial grace is not a credit card with no limits and no consequences. If you charge, you owe. Same goes in life.

        Your material choices have consequences, both positive and negative. Grace goes the extra mile, however. It says, “Yes, you are where you are, but…you don’t have to stay there, and you certainly don’t have to return.” Grace gives us the opportunity to make a change, to make the change we desire. It helps us to feel empowered to walk out the lifestyle we want for ourselves and to make the daily choices that both get us and keep us there. Mary Poppins should have said a spoonful of grace helps the medicine go down.

        Planning Short and Long Term Goals

        As you begin to plan, look at both short and long term goals. Write out the steps it will take to accomplish them. With your basic plan in hand, your road map, determine if further help is needed to bring clarity or to implement your newly devised strategy. Share your newfound view with others and invite them to partner with you where appropriate. Your close family and friends are key players in the game called “your life.” And, be proud of who you are because no matter where you’ve been, what you have or have not done, you are this day, an overcomer.

        Do you want to know more about debt and how you can make smart financial decisions now that will help you secure a more prosperous financial future? Sign up for our newsletter for monthly money tips.

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          Budgeting, Christian Credit Counselors, Credit Cards, Credit Counseling, Debit & Your Credit Score, Debt, Money Management, Saving

          Payday Loans: Borrower Beware

          Considering Payday Loans

          Strapped for cash? Thinking of getting a payday loan? Think again! Payday-Loan

          It may be tempting to get a payday advance to hold you over for a week or two until your next paycheck. What could be the harm? The industry claims they’re providing needed credit to consumers who aren’t able to qualify for conventional loans. The industry claims they are helping those hurting for cash. However, many financially wise see these businesses as predatory. They could even be comparable to old-fashioned usury, luring the borrower further down debts beaten path – dead ending at a financial crisis.

          Understanding Payday Loans

          Payday lending, or cash advance, is a practice of using a post-dated check or electronic account information as collateral for a short-term loan. Borrowers simply need identification, a bank account and income from a job or benefits, such as Social Security or disability.

          Loans aren’t dependent upon the borrower’s credit history. By design, this loan process keeps borrowers in debt. No matter the claim, these businesses are not there to help people out of a bad financial situation. Generally, these lenders don’t accept partial payments. When you can’t pay it off on time and in full, you have to renew the loan.The interest and fees add up quick and become shackles, keeping you in the cycle of debt. According to the Center for Responsible Lending, 90% of payday loans go to repeat borrowers—five or more loans per year. They’ve also reported that these lenders receive $4.2 billion in fees from Americans each year.

          The Ins and Outs of Payday Loans

          Let’s say you need a $400 loan and plan to pay it back with your next paycheck. You are required to give a post-dated check for $460 and receive in return the $400 cash. The lender agrees to hold the check until your next payday. Then, when the loan is due, the borrower has the option to redeem the check by paying $460 in cash, or renew the loan, known as flipping. Flipping involves paying off the $460 by taking out a new $400 loan, or allowing the lender to cash the original check. The finance fee of the initial loan is, in this case, $60, or 390% APR! If the borrower decides to renew the loan three times, which is what most do, the finance charge will end up being $240 – just to borrow $400!!

          You can see from this example why this practice is very dangerous and controversial. Critics argue that the lenders are exploiting those who are already desperate because of their current financial crisis. Borrowers get trapped in a cycle of debt. Payday lenders depend on this, and they love the repeat borrower. Because of the controversy, fifteen states have made payday lending illegal.

          Do you want to know more about debt and how you can make smart financial decisions now that will help you secure a more prosperous financial future? Sign up for our newsletter for monthly money tips.

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