I will admit that budgeting is no fun. However, if you are finding yourself deep in debt – it is a necessary evil. I have stumbled across a software program Mvelopes Personal that claims to be a breakthrough in personal finance software. I haven’t used it, but it seems interesting.
Pay Off High Interest First
By Scott Bilker
Source: Debt Reduction 101
David Sheepsley has two credit cards with balances. Card A has a balance of $8,000 at 19.8% and minimum payments of $160 per month. Card B has a balance of $6,000 at 5.9% with minimum payments of $120 per month. David has a total of $400 per month to use for repaying his credit cards. What’s the better plan for David?Â
1) Pay the most money possible per month to the lowest-balance card (B) first and make minimum payments to the highest-balance card (A) until the lower-balance card (B) is paid off. Then send the entire payment of $400 to Card A until that debt-repayment is completed.
2) Do the reverse. Pay the most money possible per month to Card A and make minimum payments to Card B until Card A is paid off. Then send the entire payment of $400 to Card B until that debt-repayment is completed.
Ten Essential Lessons for Funding a Child’s Education
Source: Smith and Barney
60-SECOND GUIDE TO … Getting out of Debt
Picture yourself debt-free — no more bouts of anxiety over mounting credit card balances, no more slavery to your debt, and no chance of threats from the dreaded collection agency. You can do it! Here’s the scoop — in one minute flat.
Will a Bigger Paycheck Solve Your Financial Problems?
Do any of the following thoughts ever cross your mind as you are preparing the monthly bills? How did your friend get a new job with a 20% pay raise? Wasn’t she almost fired last year? When is your manager going to move on? You are certainly more qualified. Whatever happened to the move up or out policy? Your debt has gotten out of control. You need more income. Why should you struggle each month living pay check to paycheck? It’s time for a change?
Now think back to your last large pay increase. Are you better off today than you were before the increase? Of course you are. You have nicer stuff. May be you are living in a larger house or finally purchased your dream car. You take a winter and summer vacation. Your kids are in private school. If you are better off, then why are you still struggling from month to month? A higher paycheck translates directly into a more expensive lifestyle. My wife and I vacationed in Hawaii a couple of years ago. One morning at breakfast while overlooking the most spectacular ocean view I had ever seen, my wife stated that she needed a vacation like this every year. I said that you would like to have a vacation like this each year. She replied, “No, this is a need.â€
As your paycheck increases, so does your NEEDS. The bottom-line is that people that overspend on a modest income will usually find ways to overspend on a higher income.