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Debt Management
                     
          
       
Figuring Your Taxes and Credits
top
Budgeting Software That
works!
Most
People Spend 10% More Than They Make
You probably know how much money you
made last month, but do you know how much you spent? What
about this month? Do you know how much money you have left
to spend, and on what? If you don't, you're not alone. The
fact is, most of us spend 10% more than we make. No wonder
credit card debt is at an all time high. Plus, using debit
cards, credit cards, automatic deposits, and online payments
we rarely even see our money. It's easier than ever
to spend, spend, spend! And try tracking all those
ways of spending. It’s almost impossible. So what’s
the solution? Mvelopes Personal.
Why
Mvelopes Personal?
Mvelopes Personal is a remarkable new spending
management system that actually tracks your spending as it
happens. It’s a modern version of the traditional envelope
based system. Mvelopes provides daily balance information for
each of your spending categories, or envelopes, so that you
always know how much money you have left to spend, and also,
how long it has to last. This enables you to make better spending
decisions and stick to your budget plan. It really works. With
Mvelopes Personal you can begin to manage your spending, and
lay the foundation for reaching your financial goals.
How
does Mvelopes Personal Work?
| Step
1 » |
Create
a spending plan with unlimited spending accounts called
envelopes |
| Step
2 » |
Assign
an amount of your income to each envelope |
| Step
3 » |
Begin
spending from your envelopes. Mvelopes tracks your spending
as it happens. |
| Step
4 » |
Automatically
retrieve all your transactions at once from all your
bank, credit union and credit card accounts, including
bill pay, with the simple touch of a button. |
| Step
5 » |
Assign your transactions to the envelope
of your choice. The balance is automatically updated.
Mvelopes also rolls your balances over from one month
to the next.
|
|
Top
Reasons To Use Mvelopes Personal
1.
Recover 10% of your income from hidden spending
Mvelopes users have found that once they know where they're spending
their money, they end up saving 10-20% of their income. If you make $40,000/year
that's $4,000 dollars you could save using Mvelopes Personal. See
a comparison
Sande, Photographer
"I had no idea that I was spending $400 per month on gardening! Mvelopes
Personal has helped me save $350 per month and put it toward debt reduction." |
2.
Always know how much you have left to spend in every budget category
Quicken® and MS® Money both use after-the-fact budget reconciliation.
This means that you don't know how much you have spent until it's too
late. Quicken and Money simply do not help you manage your spending or
effectively use a budget.Mvelopes Personal provides you critical balance
information for each spending category at all times. You always know
how much you have left to spend.
Stacy, Cosmetologist
"I love Mvelopes Personal because it actually sets aside money for upcoming
periodic expenses. All the other "budgeting" programs we tried were
only good for tracking what we had already spent - not telling us how much was
left to spend from before we made a purchase." |
3.
Automatically track all your purchases
With Mvelopes Personal, you get all your transactions from all your financial
institutions at once. Smart Link,
the transaction download service, simultaneously connects to all
your financial institutions and retrieves all your checking, savings,
and credit card transactions at once, and then posts them into Mvelopes
Personal. Getting all this information in one easy step saves you time
and money. No other personal finance program can do this!
Annette,
Homemaker
"Before Mvelopes, we would discuss purchases but not know exactly where
the money would come from… Now I feel much more in control of our money
and not controlled by it." |
4.
Effectively manage credit card spending
Mvelopes Personal's patent pending credit card spending tracker knows
every time you have used a credit card to make a purchase. It sets aside
money from your spending envelopes into a credit card payment envelope.
This enables you to pay off your purchases in FULL each month.
5.
Quickly eliminate debt
People who use Mvelopes Personal have found that many of their spending
Mvelopes have money left over in them at the end of the month. Instead
of spending this, they apply the total amount toward debt reduction.
Once one bill is paid they then roll the amount of that debt into the
next debt to pay it off even faster.
Stewart,
Journeyman Electrician
"My wife and I have been using Mvelopes Personal for over 4 months and have
eliminated ALL of our consumer debt! It has saved us more than once from impulse
buys and unnecessary finance charges. Once you've used it, you'll wonder how
you ever lived without it." |
6.
Never miss a payment again
Mvelopes Personal includes a full-featured
bill pay service, which helps you easily create and manage payments
online. Never miss a payment again. Make payments to ANY company or person
- up to 20 per month - and save more than $7.00 in postage alone, not
to mention the time you'll save.
7.
Get a FREE starter pack and one month's Free service
For a limited time you can try the Mvelopes Personal System FREE for
one month. There's absolutely no risk! If you choose to continue using
the Mvelopes Personal system it's just $12.95 a month, and you may cancel
at any time - no contracts. See
competitive cost comparison.
The Mvelopes Personal monthly service gives you:
- Complete
Spending Management Tools for your PC and Palm OS handheld,
plus unlimited FREE upgrades.
- SmartLink™,
Transaction Download Service, which gives you all your
transactions from all your online financial institutions
and credit cards, at once.
- Full-featured
Bill Pay Service up to 20 payments/month including postage.
- Mportfolio™,
Financial Management Service. Track your investments,
mortgage, car loans, loyalty programs, e-mail accounts and more
- all in one summarized page view.
- Free
Support and Coaching Service. Never pay to speak to a
customer support representative again, plus get free budget coaching.
|
Get
Started Today!
For
a limited time, get the Mvelopes
Personal Setup CD and your first
month's service absolutely FREE (just
$6.90 shipping and handling).
|
|
|
Back to contents
Taking A Financial Inventory
 By Cindy Diccianni, RN, CSA,
CLTC
The last few years have challenged the American public to rethink priorities and
focus on long-term planning. Having lost financial ground as far as retirement
assets are concerned, people are reevaluating the risk of their portfolios and
seeking stability in investments. Many of you may be included in this group and
are seeking help to solve these financial dilemmas.
Let's take a moment to consider financial goals for the upcoming year and take
an inventory of what you currently have and which direction you need to go.
Your Life Goals
The faltering market and weak economy may grab your immediate attention.
But ultimately, it is, or should be, your life goals that drive your overall
personal money management decisions. Are you saving the maximum
for your retirement while limiting your current expenses? Do you know how much
you need to save now to be able to enjoy your retirement in the way you want? Is
your current career path meeting your financial needs? What are the financial
consequences of a job or career change? Sometimes, the cost of a job change is
worth its weight in gold if you are able to have more leisure time and reduce
your stress. How will a career shift impact your overall financial picture now
and in the future? An important part of quality living is examining what's
really important to you and then living your life in congruence with your
priorities.
Knowing how you want to live now and in the future will help you design
financial goals based on the quality of life you want to have. This may be a
good time to seek professional financial planning advice to assist you in
designing your financial goals.
Your Objectives
Accomplishing goals requires achievement of established objectives, or
milestones, along the way - such as saving a certain amount of money by a
certain date. With the downturn in the economy, there may be a new
sense of urgency about reviewing your financial objectives. Are you saving
enough money to be prepared for unexpected events? Are you investing in a way
that supports your life goals? Do you have enough
assets with high liquidity so you can access it readily if needed? Is there
anything that you want to do in your lifetime that will require a chunk of money
and have you started planning the financing for it?
Your Current Portfolio
Ideally, a portfolio should be reassessed, and perhaps readjusted, in response
to your changing life goals and needs, not in reaction to current events that
may temporarily affect the market or the economy. Most financial analysts
believe that the stock market will bounce back in time and they are strongly
advising their clients not to sell because of panic in a down market.
However, should you decide to alter your goals, it may be appropriate to alter
your investing plan in order to achieve them. Is your portfolio too heavily
weighted in one investment area, or is it well balanced so it can weather the
inevitable ups and downs of the market? Do you have the right mix of growth and
value stocks or funds? Most importantly, are you finding that you are
uncomfortable with the level of risk in your investments now that you have
experienced "risk"?
Assess Areas For Possible Debt Consolidation
Consider your credit card debt. If you can consolidate or pay off your
credit cards, it will increase your monthly cash flow. You will also need to
look at how you use your credit cards to avoid continued debt.
Consider your mortgage rate. Is your mortgage interest rate high enough to
warrant a new mortgage? Usually a drop of more than 1% signals it's time to
review it. If you have equity in your home, you might consider using it to
consolidate debt and free up ready cash.
Prepare For Financial Emergencies
Disasters, whether man-made or natural, often strike without warning.
Many people have a thin or nonexistent financial cushion to fall back on. As a
general rule, you should have at least three months of cash
available for bare bones living.
Life
Insuranceis extremely important for family members left behind after a
tragic accident or event. This sudden loss of a wage earner in a family can
create emotional and financial hardship. Make sure you have enough coverage to
insure your family for their future needs without you. Consider the costs of
your children's education, your home and life expenses, to determine how much
coverage is needed.
Disability Insurance , which can be expensive, is often available
through group plans with your current employer. Often these plans are not
portable (you only have the coverage while you work for the company).
Additional plans are available and can be matched to an existing plan for a cost
based on your work classification. Disability insurance provides an income to
you and your family should you become unable to
work.
Healthcare insurance is one of the largest expenses impacting families today.
The most important aspect of healthcare insurance is that your policy covers
your family for the major medical expenses including inpatient or outpatient
hospitalization, physician services and some type of prescription plan.
Prepare For Death
As difficult of a subject as this is, basic Estate Planning is essential in
preserving what you have worked so hard for. A recent poll found that roughly
six in ten adult Americans have no Will. Even fewer have designated a Power of
Attorney or Durable Power of Attorney, or have prepared a Living Will. Estate
Plans are essential so that your wishes are carried out in the way you intended.
You are a role model for your community. Not only is it important that you do it
for yourself, but that you encourage others to do the same.
As you can see there are many aspects to your financial inventory. The best way
to live your life with intention is to plan how you will finance it and execute
that plan. Reassess your financial plan now in order to safeguard your assets
and provide for your loved ones. Give yourself peace of mind knowing your family
will be taken care of if you are no longer around. Finally, take a current
snapshot of where you are today, set goals for where you want to be and devise a
plan to bridge
the gap.
Cindy Diccianni is a Registered Nurse, a Certified Senior Advisor (CSA), a
Registered Investment Advisor and a Registered Representative with Leigh Baldwin
& Company member NASD and SIPC. She is affiliated with Ortner, O'Brien & Ortner
Advisory Group, Inc. and co-founder of Nurturing Your Success, Inc. Her passion
is assisting clients in creating the financial freedom they dream of. You may
visit Cindy at
www.nurturingyoursuccess.com or write to her at
Cindy@nurturingyoursuccess.com.
You may also call her directly at (610)251-9393.
Your Consumer
Rights
Your Consumer Rights
By Terry Rigg
If you have ever fallen behind on your debts you already know that dealing with
your creditors can be a hassle. Sometimes it can be downright humiliating. It
doesn't have to be that way.
With millions of people experiencing financial problems it is
absolutely necessary for everyone to know and understand their
rights as a consumer.
Federal law requires that you receive fair and equal treatment
from businesses issuing credit. This law applies when they
evaluate your applications for credit, insurance, employment,
and even leases.
The one area where I receive the most complaints are from
individuals that are being harassed by debt collectors. These
complaints range from debt collectors contacting their work and
family members to being called names. All of these are a direct
violation of the Fair Debt Collection Practices Act (FDCPA).
This article spells out exactly what your rights are as a
consumer.
I have copied some areas of this article directly from the
Federal Trade Commission's web site to ensure that the
information is explained exactly as the law applies. These
areas are identified.
The FDCPA lists the following guidelines that must be followed
by all debt collectors:
(Copied from the Federal Trade Commission web site)
----------------------------------------------------------------
~~Debt collectors may contact you only between 8 a.m. and 9 p.m.
~~Debt collectors may not contact you at work if they know your
employer disapproves.
~~Debt collectors may not harass, oppress, or abuse you.
~~Debt collectors may not lie when collecting debts, such as
falsely implying that you have committed a crime.
~~Debt collectors must identify themselves to you on the phone.
~~Debt collectors must stop contacting you if you ask them to
in writing.
It also prohibits debt collectors from engaging in unfair,
deceptive, or abusive practices while collecting these debts.
----------------------------------------------------------------
It is very important to keep a record of any contact you make
with your creditors especially when there is a dispute or
misunderstanding regarding your account. You should list the
name and address of the company, date and time of the call, the
name of the person you spoke with and the content of the call.
I have developed a form that can be used for this purpose.
You can find it at
http://www.homemoneyhelp.com/ccrs.html
Another important aspect of your consumer rights is Credit
Reporting. Derogatory information in your Credit Report can
have serious consequences. It is ultimately your responsibility
to ensure that the information in your credit report is accurate
and up to date.
There are numerous companies that offer "Free Credit Reports",
however, you are obligated to sign up for their "Debt Monitoring
Service" which usually costs about $80. You will receive a free
credit report and if you cancel your monitoring service within 30
days it will cost you nothing. Your best bet is to order your
credit report directly from a Credit Reporting Agency. It will
only cost you about $9. Below is a list of the three main
companies:
Equifax
PO Box 740241
Atlanta, GA 03074-0241
(800) 685-1111
Experian
PO Box 2104
Allen, TX 75013-2104
(888) EXPERIAN (888-397-3742)
Trans Union
PO Box 1000
Chester, PA 19022
(800) 916-8800
I would advise you to visit the below link to find out exactly
how to obtain your credit report:
http://www.pueblo.gsa.gov/cic_text/money/fair-credit/fair-crd.htm
Having knowledge of your rights under the Fair Credit Reporting
Act (FCRA) can save you a lot of time and trouble when you apply
for credit. The following explains these rights.
(Copied from the Federal Trade Commission web site)
----------------------------------------------------------------
Your Credit Report
Your credit payment history is recorded in a file or report.
These files or reports are maintained and sold by "consumer
reporting agencies" (CRAs). One type of CRA is commonly known
as a credit bureau. You have a credit record on file at a credit
bureau if you have ever applied for a credit or charge account,
a personal loan, insurance, or a job. Your credit record
contains information about your income, debts, and credit
payment history. It also indicates whether you have been sued,
arrested, or have filed for bankruptcy.
The Fair Credit Reporting Act (FCRA) is designed to help ensure
that CRAs furnish correct and complete information to businesses
to use when evaluating your application.
Your rights under the Fair Credit Reporting Act:
~~You have the right to receive a copy of your credit report.
The copy of your report must contain all of the information in
your file at the time of your request.
~~You have the right to know the name of anyone who received
your credit report in the last ~~year for most purposes or in
the last two years for employment purposes.
~~Any company that denies your application must supply the name
and address of the CRA they contacted, provided the denial was
based on information given by the CRA.
~~You have the right to a free copy of your credit report when
your application is denied because of information supplied by
the CRA. Your request must be made within 60 days of receiving
your denial notice.
~~If you contest the completeness or accuracy of information
in your report, you should file a dispute with the CRA and with
the company that furnished the information to the CRA. Both the
CRA and the furnisher of information are legally obligated to
reinvestigate your dispute.
~~You have a right to add a summary explanation to your credit
report if your dispute is not resolved to your satisfaction.
----------------------------------------------------------------
If you believe that your rights have been violated under one of
these laws you can file a complaint with the Federal Trade
Commission online at:
https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01
While these laws won't eliminate your obligation to pay your
just debts they can prevent debt collectors and others from
taking advantage of you.
Terry Rigg is the author of Living Within Your Means - The Easy
Way
http://www.homemoneyhelp.com/ebookadpage.html and editor
of The FREE Budget Stretcher Newsletter and Budget Stretcher
web site http://www.homemoneyhelp.com.
He has 25 years of
experience counseling individuals and families concerning their
personal finances. Use this email link to get a list of all of
Terry's articles by auto responder at:
mailto:articlelist@budgetstretcherpremium.com
Back to contents
The Easy
Way to Budget
When I first moved out on my own, I had absolutely no idea what
a
budget was or how to use one. I had always had plenty of money to pay
my bills, put a few dollars in savings and still had enough left to
party on the weekends with my friends. All of that changed when I
got my first apartment. Suddenly there were bills I'd never had
before. After a few months I found myself with no savings left,
drowning in debt and no idea how it had happened! Mom and Dad to the
rescue! But not fiscally. What they did was show me how to set up
an easy, no hassle way for me to budget and keep track of my money.
It was so simple that I still use it, 20 years later.
We began, of course, by figuring out exactly how much I had coming in
every month and what my regular expense were - rent, car, etc.
Here's an example:
Rent $500
Car $225
Electric $150
Car insurance $55
TOTAL $930
Then we estimated my other expenses, something like this:
Food $125
Gas $75
Credit Cards $150
Clothing $100
Entertainment $100
Savings $100
TOTAL $650
$930 + $650 = $1580
Say I was bring home $1700 a month, then I would have had $120 left
for emergencies, birthdays, etc. What I did with any extra was
either put it in saving or in a special place where I could easily
access it when I needed it.
Now, once I got my paycheck I would pay the regular bills first.
These are things that MUST be paid regardless and should always be
paid before anything else (the $930). Then I paid my other expenses
(the $650). I wrote a check when I needed to, but I tried to pay as
much by cash as I could. Here's why. I had an envelope for
every single expense and put the appropriate amount of cash in it.
Everything that had to be paid by check went into my checking account
the next day, right after I mailed the bills off. All bills to be
paid in cash, the money went into the envelope. If I knew I needed
to stop for gas, I would take the "gas" envelope with me and
pay in cash, keeping the receipt in the envelope. If I went to the
grocery store, I took the envelope with me and put the receipt in the
envelope when I was done. You get the picture. I kept ALL of my
receipts, no matter what they were for. At the end of the month I
was able to see exactly where my money had gone. And I found that I
frequently had money left over in some categories. While it might
have only been $2 or $3 dollars in change, this adds up quickly.
This went into savings or set aside for whatever.
Using this system meant that I couldn't spend more than I had,
which kept me from going over budget. And I admit that there were
times I took from one envelope to cover expenses in another or buy
something a little extra. But when the cash was gone, it was gone
until the next month. I began leaving my credit cards at home and
quickly learned to stay within my budget.
The next step in this process is paperwork. We all know what pain
this can be, so we want to make it as simple as possible. Here's
the easiest way I know. When you write a check, once it clears the
bank and you have your statement / check proving it, toss the bill.
The statement and check are all you need if there is a problem. For
bills you pay in cash (like credit cards bills you take to the
store), keep the receipt until you get the next bill showing your
payment. Or get a money order and do the same thing. For everything
else you paid cash, so no problems there. As you can see this really
cuts down on the paperwork you have to keep. Which in turn means you
don't need to find anywhere to file it. A small divided file
will work and it is simple to find a place for something this small.
This system can easily be adapted as your needs, bills and budget
grows. Plus, this is an easy way for teenagers and college age kids
to learn to handle their money. There are tons of "budget
systems" out there that you can buy. And if that's what is
best for you then do it! But why waste your money? After all, this
about not spending more money than you have. This system is easy.
And for someone who isn't good with numbers, that's wonderful
thing!
Brenda Spagnola-Wilson is a moderator and community leader at
www.BabyUniversity.com and lives in Texas with
her husband and two
children. She enjoys writing about a variety of topics, with her
main focuses being home improvement & decorating, saving money, being
a SAHM and general home care. Currently she is the Co-Editor of the
At Home with Baby University Newsletter. Feel free to contact her at
bspagnola@ev1.net with any comments.
Back to contents
Clean Up Your Bill Clutter
Once and For All
By Roxanna Ward
An unorganized bill system can bring havoc to your finances. You
have to create a system and keep it in place so that it works for
you. Somebody else's system will never work for you. But you may be
able to take some ideas from others in order to create your own.
If you are anything like me, your system has to be simple. A system
that is too complicated gets put off. Then the domino effect takes
place. The more you put it off, the more there will be to do in the
long run. Personally, the method I use has worked for me for several
years. I have kept it simple and easy to use so that in case anybody
needs to, they can jump right in and take over where I left off.
Hopefully you can benefit from my methods as well.
I have a one inch binder that is the center of my bill system. Do no
use a binder that is any thicker. The thicker the binder, the more
clutter it can hold. Your binder needs to have three prongs to hold
paper and dividers. It needs to have pockets on the front cover and
back cover. The beginning of school is a great time to buy binders.
I recently found them for $.50 each. Don't spend a lot of money
creating your binder.
Now let's organize your binder and rid your life of bill clutter.
Open your organizer. The pocket on the front cover should be used
for future purchases only. Place catalogs here. But be careful not
to overload the pocket with junk. No more than three items in this
pocket at a time.
The first organization tool you should have in your binder is a
divider with a pocket. This pocket is where you first park your
incoming papers. I'll tell you more about this later.
Next you should have a bill schedule form for each bill you have.
Even if you do all your bills on the computer, this piece of paper is
the most important tool you may have. In the event of an crisis, all
your payee information will be in one central location. Your bill
schedule form should have four lines at the top. On these four lines
put the payees name, address, phone number and your account number.
The remainder of your page should contain a simple spreadsheet. The
spreadsheet should contain a place for the balance, date due, amount
due and date paid/amount paid. More on how to use this later. I
know this sounds like a lot of work, but stick with me. You only
have to print these pages once a year. Make a blank form, print
plenty and fill out the needed information at the beginning of the
year. Use the extra forms throughout the year as you need them.
The last item in your organizer is another pocket divider. This
divider is the last place you park your bills until they are filed in
their final destination.
You are now ready to use your organizer. Your bills come in. Take
each bill and log them onto their individual bill schedule form.
Proceed with your usual bill paying system. Place the paper bill
into the last pocket divider. When you pay your bills, pull this
paper bill, log the payment onto the bill schedule form and file.
You should never have more than one bill for each payee in the
divider at a time. This helps cut down on clutter also.
This is the basis system that I have in place. Occasionally I change
a little detail here and there. Overall it works for my family.
Create a simple system for you and don't be afraid to change alter it
as needed to make it work for you.
~~~~~~~~~~
Roxanna Ward, Community leader and staff writer for
http://www.BabyUniversity.com, lives
in Georgia with her husband and
her three children. As a published freelance writer the focus of her
writing is concentrated on sharing household tips, her experience
with her frugal lifestyle as well as the phenomenal process of
breastfeeding, child rearing related issues and romantic
relationships. She is also currently the Editor of three newsletters:
What's New at BabyU?, Intimate Encounters and At Home with Baby
University. Roxanna can be contacted at
Roxanna30135@aol.com
Back to contents
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