“Spending Diet or Spending Fast”- Either way a new concept to cut down your debt fast!

“Spending Diet or Spending Fast”- Either way a new concept to cut down your debt fast!

This is fairly a new concept applied by Anna Newells, a Denver-based blogger who paid off $23,605.10 of her student-loan and credit-card debt through this process within a couple of months. Sounds relatively unreal, but it can be achievable as long as you can differentiate your needs vs. wants.

Source

A real life experience of Anna Newells.
According to her,

“With the spending fast, I had no discretionary income."  This meant she would spend the money only on essential needs such as rent or mortgage payment, utility bills, groceries, transportation or vehicle costs.  If it was not absolutely necessary -- then she did not get it!   Clothes, coffees, dining out, movies -- forget it!  She did not get it!  Nothing!  Nada!

 With the spending diet, however, she gave herself a $100 non-need allowance per month, and would spend that on whatever she wanted. BUT the spending diet was way harder than the spending fast, she claimed. “Because with the spending diet, I would try to spend normally -- and then I would overspend!”

How can you apply these programs?

Let me give you an example. Your daily coffee from that high-end cafe is not an essential purchase. Seriously, ask yourself, do you really need to spend $5 to wake up every morning?  Instead, try making yourself a cup of green tea or black coffee or anything that suits your taste.

Always remember that your spending needs should only include necessary or must expenditures such as rent or mortgage payments, transport costs, groceries and emergencies. Always make sure you ask yourself, “Is this absolutely essential?” If it’s not, than you cannot spend money on it!  This takes discipline. Lots of it. Without discipline, you will never last in this program.  But if you do, the rewards -- paying off your debts - are huge!

Anna Newells’ tactics may sound too harsh for most us.  So here is one alternative version of spending diet program.

Give yourself a budget cap combining all of your essentials and non-essentials. This could be your monthly or weekly allowance depending on your pay day structure. You must survive within the budget that you give yourself every time. It is wise to start with the usual amount that you spend every week or month and then start to cut down a little portion from that budget as you progress.

For more money saving tips and financial advice visit www.prudentfinancial.net

Where to save money and start paying off your debts first?

When repaying your debt, first start with your credit cards and say no to minimum monthly payments. Then follow up with your car loans, personal loans and other kinds of debt.

Also, don’t forget to reward yourself after achieving your monthly financial goal, but remember the reward level must stay within your spending limit!

Overdue debts can lead to bad credit rating which will result having poor credit score, minimizing your debt will not only improve your financial condition but also your personal and family life.

LOTS OF LUCK!

Let us know if these methods can be helpful to manage your finance better. Are they practical? Are they durable?

 

 

 

The Prudent Way To Use Your Air Conditioner And Save Money

This time of year we are all turning on our air conditioning and thinking about how to save in energy.  As the electrical bill rises here are a few options to keep costs down and to stay comfortable and cool this summer.

Minimizing the use of your Air Conditioner

-       Every night open the windows to let the cooler air in and if you have fan’s blow the hot air out of the upper floors in your house.

-       In the morning keep the cool air in by closing all the windows and drawing the blinds so that the sunlight won’t heat up the room. If you have ever wondered why the European countries have shutters on the outside of their windows, they have been using this technique for centuries.

-       If your home is well insulated for the winter it will also have the reverse effect in the summer and keep it cool. Are there any drafts in the winter that you know of? Hot Air will also find it’s way in during the summer unless you seal it to make it air tight.

-       Don’t let your house heat up from the inside.  Even changing your light bulbs to halogen is a great idea from saving electricity to not producing heat. Barbeque outside when possible. Keep cooking inside to a minimum when possible.  When is the last time you cooked with your microwave? 

-       Is your attic ventilated? If you have proper insulation and ventilate your roof properly the heat won’t reach 66C.  Installing ventilation fan’s in your attic will reduce the amount of heat that contributes to your indoor temperatures.

-       Your dishwasher uses an extraordinary amount of electricity to dry your dishes. If you can catch it try to turn it off during the drying cycle and if you can wait for a full load and run it at night.

Use Your Air Conditioning more efficiently

-       Set your air conditioner on a timer. Set the timer to turn off during the day and turn on 2 hours before you get home.

-       Raise the temperature a degree every day. Your body will adjust. Take off your down filled duvet and sleep in a higher room temperature.

-       Try not to drastically lower the temperature at once.

-       When you are out of your home longer than 24 hours turn your AC off.

-       If you have an AC unit outside is it shaded? Keeping it shaded will cut the amount of energy it uses to keep it cool.

All in all we should be conscious of not contributing to a black out. If you were to flip your main breaker on your house how much energy would you save? Now try to find everything you can to switch off when you go out. From power bars to all lights, anything that requires the slightest but of power will potentially produce heat, raise your electrical bill and create unwanted heat in your home when you are not there.

Fore more valuable information please contact www.prudentfinancial.ca

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How to Improve Your Credit Rating?

How long will negative effects of bankruptcy affect your credit rating?
There is not a one-sized fits all solution for this question. However, it is important to know that your credit rating can be restored through the right channels.
When you go through a bankruptcy or other large scale social event, you will be able to recover from it within a certain period of time provided you follow the rules of good credit going forward.
The maximum amount of time you can expect to have negative information about your credit history on your account is seven years, but the actual time can vary depending on the event and where you live.

Improving your credit rating will require you to make certain behavioural changes that will help you get ahead. First, you have probably heard this, but you should heed it and always pay all your bills on time. It is better to go without in other areas of your life if you need to in order to pay your bills on time if improving your credit rating is important to you.
If you can't pay your entire bill on time, at least pay the minimum due to avoid future negative credit ratings that will hurt your credit rating and your chances for financial success.

There is another way to improve your credit rating which is called a secured credit card. If you can put down a big chunk of money, say $1000 or more, then you will be able to get a secured credit card. This will make it obvious that you are able to be responsible with credit and that you have good income coming in. A secured credit card is a great way to quickly improve your credit rating.

All in all, it takes time to recover from incurring bad credit. This is not a situation that occurred over night and it doesn't get fixed over night. It is important to remember not to make too many applications for credit when you are trying to recover your credit because every time you are denied it is another black mark on your credit rating. The best thing to do when you are trying to recover your credit rating is to keep a careful eye on your spending.

Don't spend too much and put as much as you can into your bills and staying out of debt. Start to do that and it will heal your credit rating in the long term. For more valuable information, visit www.prudentcreditrepair.ca

What to do when you don’t have enough?

It’s a vicious cycle. We can never have enough money to satisfy our needs. The more we have, the more we spend so you should ask yourself, do you spend too much money or is it that you don’t have enough money?

What to do when you spend too much

When you have money but feel like you don’t have enough, you should consider cutting back. Do you really need the newest model cell phone available today? Stop impulse shopping. Cut back on any luxuries that you never use such as extra cable channels or eating out at the trendiest restaurant. What you want to do is cut out the things in your life that you can do without.

When you just don’t have enough

You may have lost your job or are working hard but just don’t make enough. This is the time where it’s crucial to make changes in your life. This is sink or swim time. You need to get yourself motivated and be aware that there are no limits except the limits you put on yourself.

You should start by reducing expenses. There are always ways to reduce expense. You may need to get a roommate or downsize your home. You may need to start taking the bus or carpooling. Cut back on your food budget. Cut down on electricity in your home. You definitely want to stop using any credit cards you may have. If you’re a smoker, take this as an opportunity to quit and become a healthier you.

Contact your creditors and see if you can work out a reduced payment plan of some sort. If you can prove economic hardship, you may find that some companies will reduce interest rates or extend a payment plan that’s suitable to your situation.

If you’re able to pick up extra hours doing side work such as babysitting, yard work, selling on ebay or tutoring for extra money then go for it. There are so many money making opportunities out there, all you need to do is expand your mind.

When you have the tools to save money whether you are employed or unemployed, it will always be a positive outcome.

For more valuable information, visit http://www.prudentcreditrepair.ca/

Back to school shopping and how to save

It’s that time again. School starts in just two more weeks and with your bank account continuing to drain away you’re starting to panic. Here are just a few money saving tips that can ease the financial strain on your back to school shopping.

You’ll want to check your home inventory first – There is great likelihood that you still have supplies remaining from the previous years. Remember any recent loot bags that you may have received that contain school supplies such as pencils, rulers, pads of paper and dig them out. Go through all clothing items to decipher what can be used for the school season and what items you need. If your children wear uniforms to school, it would be wise throughout the year to put aside the items that can be used for school such as white golf tees and navy cargo pants or sweats.

Make a list - Once you’ve determined what you need, make a list. Be detailed so that you’re not buying things that are not needed. Schools usually provide a list of items that are needed for the next school grade. Buying over and above this list is a sure way of wasting money. If it’s not on the list provided by the school then it will not be used. Don’t forget to check the dollar store for certain items, you’d be surprised at the selection.

Stick to a budget – Speak to your children about the items that they really need/want in terms of clothing so you can pack a budget that you can stick to. Factor in shoes, jackets, knapsacks so that there are no unexpected purchases when you’re out shopping.

Clip coupons – Don’t throw away those fliers or local newspapers. Sift through them with the children and search through for any school supply coupons that can be used. Google search for any online coupons that can be used for your school shopping expenditure.

Stack up – If you find a great deal on a certain item that you know your children will need more than one of throughout the school season, stack up. If possible it’s also wise to shop once the school season has commenced. Many stores will have sales to clean out their inventory.

Make your own – Juice boxes, water bottles and pre-packaged food items can cost you so buy a reusable beverage holder that you can put your own juice or water in. Buy containers that you can put your own soup, sandwiches or snacks in to save you money in the long run.
With gas and food costs rising, it may be more crucial than ever to save on purchases this year.

With just these simple steps you can save more than you know. Happy Shopping!

For more valuable information, please visit us at http://www.prudentcreditrepair.com/.

Become a savvy shopper and clip coupons

Clipping coupons is back! More and more women are now shaving at least $50 a week off their budget by clipping coupons. There are billions of coupons distributed and only a small percentage is redeemed. This is because when we think about clipping coupons to save money, we think how time consuming and inefficient it is. Nowadays technology has allowed us to take advantage of saving money through coupons via internet and our cell phones.

Start off by getting a coupon organizer. If you’re the individual who has the time, scan through all newspapers and fliers that come to your house and clip all coupons to put into your organizer. Consider starting or joining a swap coupon group and trade in those coupons that you know you won’t use for one that you will use. Not only will you save money but you’ll make new social connections.

If you find you just don’t have the time to rummage through papers to find coupons then get online. Register to specific websites (ie pampers) and take advantage of their printable coupons and promotions. Sign up for email alerts through your favourite stores. There is no shortage of online coupon sites that you can visit to download printable coupons.

Using the coupon when the item is on sale is the best way to save money as you’re now getting a discount on an already discounted item and you’ll pay next to nothing for that particular item. It’s genius really!!!

Get to know your stores and your products and jump on the gravy train, you’ll be really surprised how effective coupons are in saving you money.

For more valuable tips and information, please visit us at www.prudentcreditrepair.ca.

Finances can be challenging

Are you constantly ignoring your telephone calls to avoid the collectors? Are you stuck in a payday loan trap? Are you left with little to no money after paying for all the necessities in life such as food? These are all common financial challenges that may lead to chronic health issues and too many of us eventually endure. What can you do to stop this from happening to you? We need to financially educate ourselves so that we feel empowered to make lasting changes in the ways we manage our personal finances.

How do I educate myself?

There are so many reasons why one would neglect their finances. We need to figure out what’s stopping us from taking control of our finances. Here are a few points to remember:

· Try to always keep in mind the impact that financial instability can have on yourself and your loved ones.

· Stop making excuses and change your thought pattern. Instead of telling yourself that you get discouraged when you look at your finances, tell yourself that it’s not the money but the way you feel about money that causes you to get discouraged.

· You should keep track of all your spending by creating a budget and don’t forget to include all miscellaneous spending.

· Financial burdens can affect your sleep so know that repeated nights of no sleep will impair the function of your immune system and can lead to more chronic illnesses. Helping yourself stay focused on your finances and knowing that your working towards financial health is a good start.

Life is stressful enough without the added stress of finances. Whether you’re stuck in a payday loan trap and/or have a bad credit history that you need to rebuild, start with the tips above and seek help and alternatives such as Prudent Financial Services who is the leader in loans to people with bad credit histories and will help restore your credit.

With the prices of food and fuel on the rise, we need to stop facing the brunt of financial mismanagement now! This will require effort but the goal to secure a better future for you and your family is nothing in comparison.

Good luck on your road to financial health! For more valuable information, please visit us at

http://www.prudentcreditrepair.ca/