Archive for May, 2008

31
May

Learn to be Practical

   Posted by: Rosanne Lorraine   in saving money

Do you think earning more money than you currently earn is going to solve your problem with paying the bills? If you say yes, you have a big problem here. Having a raise doesn’t necessarily mean your problem is solved. The thing you have to change is your behavior, because that’s where troubles arise. Example, you earn $3000 more than your previous salary. Your expenses will rise too because you think you have more money now. You will buy unnecessary clothes and gadgets, renovate your house, or eat at a classy restaurant.

Millionaires file for bankruptcy, why? Because they think their money won’t be completely used up. Yet, average people who know how to handle money properly stay afloat even in dire situations. You’ve heard about this a lot of times but let me say it again: learn to budget. Also, save enough money in case there’s an emergency so you don’t have to borrow which will lead to debt and high interest rates.

Be practical. Look around you and you will find poor people who can’t even see this message because they have no computer. Go to Africa and see that others don’t even have food on their plates. I hope this is an eye-opener for everyone.

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25
May

Pay Off your Debts

   Posted by: Rosanne Lorraine   in debt reductions

As students, we may not know yet the right way of reducing our debts to put us in a better position. Although it is sometimes inevitable not to borrow money, we should know how to break free from it. Understanding how money runs in circle will help you in the future. Here are some tips to help you n your debts.

1. Make a budget planner. List all your expenses and earnings in the planner. Make sure you leave nothing out so that it will be accurate.

2. Never pay your debts with another borrowed money. When you borrow money, there’s a new interest you have to pay for besides the interest of your former debt. This will make you pay two interest rates.

3. Lessen your expenditures. Remember that your income should be greater than your expenses. Also take note of the debt you have to pay back. Maybe your snacks or late-night outs are the unnecessary expenses you have to cut back on.

4. Request for a lesser interest rate. Try to ask for lower rates by calling your creditors. Compare your interest rates to others and tell your creditors about it. This will be the basis of the negotiation.

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