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Developing an effective and sound budget is truly important or crucial when you wish to achieve financial targets, control household costs and manage debts. A budget is the key ingredient to achieving financial goals, achieving household goals and managing debt successfully. Apart from this, by creating a budget you may pay off debt, buy a bigger apartment and get a better car.

A sound budget can only be developed when you understand your entire financial situation in a better way. You may experience a lot of challenges while creating a budget that suits your young family. In your attempt to develop a smart budget, you might wonder how to begin with it. Developing a budget is about identifying the starting point and the steps to go with it. There are a few good websites that may help you prepare an effective budget. In order to catch up with the best sites across major search engines, you may click on Check n’ Go•.

Consider a few budgeting tips that will keep you motivated –

1. Note all expenses

All of your monthly expenses need to be written in a notepad. Make a list of each single item that you purchase every month. Record all goods that you use on a daily basis, be it those ice creams that you keep on the refrigerator, your parking meter charges as well as your morning coffee.

Although it might seem tedious it will work in your best interest. Once the costs are itemized, you’ll need to go through the list and find which items are absolute necessities. You may try creating two categories namely discretionary and essential. You’ll certainly come to know how much you can actually avoid spending or save out of your list of expenses.

2. Exercise discipline

In order to stay within a tough budget, you’ll need to count on your means and exercise discipline and self-control. You must learn how to cope with the challenges of staying within a budget. There is a certain trick to get things done while staying within your budget. A budget resembles a diet; you’re bound to shed a few pounds once you start having lettuce leaves for about 7 days. You don’t need to live without fulfilling your daily necessities. For an occasional reward or treat, a certain allowance needs to be incorporated within your budget.

3. Set your targets

Set achievable targets. This way, you’ll be able to analyze each of your moves and proceed without committing mistakes. Meeting new targets will be easier once you reach your initial goals.

4. Use an online budget plan

You’re bound to come across a number of online budget planners that come for free. A majority of the budget plans are friendly towards their users. A budget planner helps you to measure the out flow of your money. Once you can measure your expenses, it will be easier for you to manage them.

5. Seek assistance

You may use free information available over the internet for maintaining or developing a budget. When it comes to promoting financial websites bearing quality budget tips, you may utilize sites like Check n’ Go•. Websites like this are aimed at educating people on budgeting and other financial areas.

Filing for bankruptcy is a drastic step in regaining your financial health, and the impacts are long-lasting. It is not something to be done lightly, or without weighing out all of your available options. If you are drowning in debt, however, bankruptcy can be a valuable first step in rebuilding your financial future.

GetFreeOfBills.com notes that bankruptcy comes in two forms: Chapter 7 and Chapter 13. While Chapter 7 allows you to discharge most debts, Chapter 13 requires you to follow a structured plan to repay your debts under more favorable terms. Depending on the amount of disposable income you have, you might be required to file Chapter 13. Regardless of which type you file, however, the pros and cons are generally the same.

Pros

• Clean slate: A bankruptcy provides a clean slate. It effectively resets your credit to zero, except for the debts that cannot be discharged such as student loans, recent back taxes, and child support. It provides you with the opportunity to stop making costly payments and provides you with more money to live on each month.

• Opportunity to rebuild: Some people believe that bankruptcy prevents you from ever having credit again, but this is not the case. Many people manage to build new lines of credit shortly after their bankruptcy, and it gets easier as time passes. While it is true that bankruptcy remains on your credit report for 10 years, its effects gradually lessen.

• Stopping adverse collections actions: If you are being hounded by creditors, facing foreclosure, or afraid that your wages will be garnished, bankruptcy can be a psychological relief. When you file for bankruptcy, you will receive an automatic stay from the court. This forces your creditors to cease all adverse collections activities against you. If you have a bankruptcy attorney, he or she will also act as a shield, handling creditors on your behalf.

• Exemption laws: Your home and car are generally exempt from bankruptcy, as long as you continue to meet your payment obligations. You are also entitled to a cash value for personal possessions. If you have a significant number of luxury possessions, you might be required to sell some, but the exemptions are generally high enough to let most people keep their personal items.

• Job protection: Although some employers will not hire applicants with a bankruptcy on their credit report, the job you already have is protected. It is illegal for an employee to be fired for declaring bankruptcy.

Cons

• Damaged credit: Bankruptcy is a major hit on your credit report. In the immediate aftermath of the bankruptcy, you might be unable to get any new credit at all. Although it usually does not take long to get new offers, you will fall into a high risk category for lenders. Expect to pay interest rates that are significantly higher than the ones you had prior to your bankruptcy. However, if you are in the position of filing for bankruptcy, your credit is probably already damaged. Some people find that the credit hit is much less significant than they anticipated.

• Filing costs: Filing for bankruptcy typically costs a few hundred dollars, depending on your location. Attorney’s fees are billed on top of that. However, in most cases you can make a payment arrangement if you can prove that paying a lump sum would present a financial hardship.

• Embarrassment: Although it is surprisingly common, filing for bankruptcy still carries a certain stigma. Some people worry that their loved ones will find out and ultimately think less of them for their decision. However, bankruptcy typically comes at the end of a long journey through mounting debt. Most people understand that sometimes life happens, and do not judge their friends and relatives for making a tough financial decision. Besides, having your home foreclosed or your car repossessed is not exactly a less embarrassing option. When taken seriously and only as a last resort, bankruptcy can actually be the smartest choice for some situations.

• Exempted debts: Some debts cannot be discharged in a bankruptcy, including recent back taxes, child support, and student loans. In addition, most people choose to keep their mortgage and car loan, if applicable. However, discharging your other debts will create more available money each month, which can then be diverted toward paying your remaining obligations.

Bankruptcy is not for everyone, but it is the best solution for many people. Attorney David M. Often of Get Free of Bills understands the complex decision-making process that is involved in determining whether bankruptcy is the right choice for you. Contact his office today for professional advice on how to proceed along your journey to financial freedom.

Just as the name implies, a short term debt financing stands out as a financing form that involves a financial obligation a company has to fulfil in a shorter period of time when compared with regular financing options. In most situations we are talking about a maximum of 2 years, although 1 year financing is usually offered.

Many companies opt for short term debt financing because of the fact that they want to have more working capital available or it is possible to need more money as day-to-day operations need more cash. Cyclical operation conditions or companies that are faced with international trade need such financing in various situations.

According to Today’s Growth Consultant Reviews, there are 4 types of short term debt financing that you can consider:

• Overdrafts

This is basically an instant credit extension offered by the lending institution. As a company gets the overdraft agreement, it can transmit or draw down cash from the account beyond the balance that is available. Credit amount will always depend on overdraft limits that are negotiated with banks. In this case the advantage is that you will only take out as much as you need for the operation activity when it is necessary.

• Credit Letter

A credit letter is basically a letter that comes from the bank and guarantees payments towards sellers. Sellers are guaranteed that amounts will be received during credit period. In this situation the advantage is that the company is usually going to be offered a better overall credit term when dealing with a supplier.

• Short Term Loans

These are loans that have to be repaid in a short period of time, together with the associated interested. This is a loan that is not revolving and usually has a completely fixed repayment period. A company can use it in order to gain more liquidity as working capitals are lower or are necessary (for instance, for paying creditors or buying stocks).

• Exchange Bill

This document will bind a party to pay an amount of money at a fixed rate to the secondary party at a specific date. In most cases this is a bill that appears when dealing with international trade. Exporters can grant a credit for the importer for the goods shipped with an exchange bill for the amount.

Short Term Debt Financing Qualification

In order to receive such financing you do not need to think about formal qualifying criteria. Usually, the company needs to hold a stronger business case that supports business viability and owner capital. A supplier can offer a short term credit for the purchases in order to enhance competitiveness. The bank will offer overdrafts and short term loans in order to earn an interest and build client relationships. To put it simply, if the company is transparent in operations and financials, there is a strong possibility that such financing would be offered.

In October 2014, the personal saving rate, the ratio of personal income saved to personal net disposable income, was only five percent in the United States. Americans are not known for being savers; the all-time high for personal saving ratio was 14.60 percent in 1975 which is lower than many developing countries.

The truth is, life happens and it can often be expensive. By building your savings into a nest egg, you will be better prepared for these developments.

A Nation of Spenders

Almost half of American households (44 percent) have no more than three months of expenses in a savings account, leaving them unprepared for medical, legal, or other emergencies. Many rely on credit which accumulates expenses through interest rates and in some unfortunate circumstances, late or missed payments.

The National Foundation for Credit Counseling conducts a survey every year on consumer financial literacy. According to the latest survey, 16 percent indicated that their emergency fund was insufficient. The same percentage also admitted to not having enough in savings to retire.

Saving Is Necessary

Relying on credit instead of stashing away money is a risky game. As your balances rise, so do interest rates and fees. Many people file bankruptcy because they do not keep up with servicing their debt.

As this pattern continues, credit scores drop but life does not stop happening. If a car needs brakes, a water heater blows up, or you get sued or face legal charges and need to pay criminal defense lawyer fees, this means having to find money quickly. A household that is liquid asset poor is also vulnerable to predatory lending that only deepens financial insecurity.

Get Started

The economy is unpredictable and only a healthy savings account ensures stability. The time to develop this habit is now. Here are suggestions to get started:

• Start Small. Even if you only transfer $5.00 from every paycheck into savings account, it is better than nothing. The trick is to make this a habit and putting aside a small amount will accomplish that. You will likely increase this amount later, due to the satisfaction of saving.

• Set a Goal. A $1,000 emergency fund covers most every day emergencies like car or home repairs. While legal fees and medical bills could easily wipe out a fund of this size, $1,000 is a good goal to start saving. Break it into two $500 goals if that seems more feasible.

• Schedule Automatic Transfers. Some employers offering direct deposit will allow you to split your paycheck into two accounts. If that is possible, arrange a certain amount for your savings account. Otherwise, set up an automatic transfer from checking to savings at each pay period so the saving process occurs despite any lapses in discipline.

A nest egg means an emergency becomes an inconvenience instead of a disaster. If you are relying on credit or living between paychecks, take it as a sign to change your financial habits. Rather than mull over your mistakes, take action today to start a good savings plan.

According to recent reports, India’s GDP grew up by 5% in the financial year, 2012-2013, which was the lowest since the last decade. It seems that the 2008 recession still looms large on the daily lives of the Indians. While the lawmakers are there to take larger and bigger decisions about the nation’s GDP, the common man can’t do much about macro-economic indicators. As we’re about to step into 2015, we need to organize our finances and revisit, learn and imbibe some timeless personal finance lessons from the maestro Warren Buffet so that we can overcome the financial shocks that may be in store for us in 2015.

1. Review 2014 before you start: Before taking any step, start off with a review of 2014. How did you fare? What points did you miss? Which financial tasks are still pending? Where did you commit some of the biggest blunders? Were all your investments on track? By evaluating your strengths and weaknesses that you’ve portrayed in 2014, you will easily be able to deduce the steps that you need to take to improve your finances. Write down everything in points so that you don’t forget anything while planning for 2015.

2. Create a frugal budget: Budgeting is a basic but important tool. When you know what you earned and where your money went, you can be aware of your current financial situation. Often times, when your expenses are high, a large part is accounted by all those unexpected and unplanned expenses like entertainment, eating out, coffee shop bills, which are difficult to control and restrain. So, you should first know the excess outgo and then analyse the spending habits so that you can limit each expense. Live within your means and check yourself whenever you see that you’re outdoing your budget.

3. Spend wisely and live thriftily: Warren Buffet says that if you buy things that you don’t need, soon you will find yourself sell things that you need. Most of us suffer from the urge to splurge and most often we justify our expenses using the pretext of special occasions, lifestyle, family emotions and even smart decisions. Most marketing companies understand this urge and they try to exploit by giving us offers on products. Unhealthy carbonated drinks are sold with promises of adventure, youthfulness and happiness. You may also take the example of EMI options on expensive smartphone. Little do they understand that through the EMI option, people tend to pay more in the long run.

4. Save money for the financial odds: Remember that someone is sitting under the shade today as someone planted a tree long time ago. All of us are aware of the fact that saving money is important to have a better future. But it is indeed an alarming fact to observe that most of us don’t even save enough money for the emergencies. This happens due to our extremely myopic view of our personal financial condition. Today, instant gratification matters more than saving for tomorrow. In fact, saving is considered as sacrifice by most people. Follow the “pay yourself first” principle. Set aside some money for your future.

5. Plan for the long term and be patient: No matter how great are your talents and effort, there are some things that just take time. Can you ever produce a baby in one month by getting nine women pregnant at the same time? Money is also a part of nature and it can’t grow overnight. However, we always overestimate money that we can make in a year and underestimate what we can make in 10 years. People should make money by staying invested for the long-term instead of dancing in and dancing out of the portfolios and changing them constantly. According to India’s growth, you can benefit only if you invest for long term and stop panicking for short-term fluctuations. Based on your risk appetite and financial goals, make a diversified portfolio. Pick right financial instruments recommended by your financial advisor.

6. Borrow within your limit: Remember that you can never become rich by living on borrowed money. Initially people think that borrowing is manageable and to later on repay the previous borrowings, they take out yet more loans like the debt consolidation loans. This is more like fighting-fire-with-fire approach towards debt reduction. Borrowing should never be done without an objective assessment of future cash flow and other financial needs. Have a solid plan to pay the debt back and not become its slave.

A debt-free life is indeed the best life. In spite of knowing this, there are many who hardly take the required steps to stay on the right track. If you’re not willing to spend a life immersed in debt, take into account the above mentioned financial tips by Warren Buffet.