Pre-approved Car Loans

Buying a car can be a grueling process. It usually goes something like this: You go to a dealership and find an automobile that suits your tastes and/or needs. You discuss it with the salesperson, take it for a test drive, and decide whether to pursue it or keep looking. If you are still interested, you discuss the price and apply for financing. Then the salesperson goes back and forth with the sales manager until a workable price and financing plan is reached.

But sometimes it is not that simple. Buyers often choose a vehicle that is beyond their price range, and the dealer will not finance it. Or worse, the buyer may be turned down for credit completely. But much of this hassle can be avoided by getting a pre-approved car loan through a bank.

Getting pre approved for a car loan is a fairly simple process. The buyer simply goes to the bank before setting foot on a car lot and requests pre approval. The loan officer takes an application and runs the buyers credit report, and informs him how much money he qualifies to borrow. The buyer may then start looking at cars, and when he finds one in his price range, the bank sets up the loan.

Benefits of Pre-approved Car Loans

Getting a pre-approved car loan has some definite advantages. These include:

* It shows dealers that you are serious about buying. When they know you are definitely planning on purchasing a vehicle, they are more likely to try to offer you a good deal to keep you from going elsewhere.

* Having a pre approved loan from the bank eliminates the need to haggle over dealer financing. Rates for dealer financing are often much higher than those offered by a bank, and rebates or discounts may be tied to the interest rate. When you already have approval from the bank, you won’t have to make concessions in these areas.

* You know your price range before you start shopping. This can help you avoid pursuing cars you can’t afford. It may also give the dealer more incentive to offer you the best deal possible.

* It is possible that the dealer might try to beat the rate on your pre-approved bank loan. Dealers receive commissions and other incentives from the banks that do their in-house financing, so they prefer for buyers to finance through them. If they can offer you a lower interest rate than your pre approved bank loan, they will usually do so.

Getting pre approved for a car loan does not put you under any obligation. It simply means that the bank has agreed to finance up to a certain amount for you. There are usually certain requirements regarding the age and condition of the car, but you can generally choose any car you want and know that financing will not be a problem.

Stock Brokers Advice

It can be a good idea to use a stockbroker for an active management of your stocks or mutual fund portfolio. It can be vital if you want a steady growth. It may also be unnecessary as a passive management alternative often is available for long term investing.

However, many prefer to use and pay for the services of a broker because they feel more comfortable making decisions about their finances with the interactive guidance of a licensed advisor.

Using a stockbroker for financial guidance one must be aware of the fact that they do get paid on a commission. This can be a reason for them to trade more often as more trades make them more commission. The stockbroker is also paid on the result they can achieve.

Furthermore a conflict of interest arises when a stockbroker offers his/her services as a financial planner, because their revenue is generated as a direct result of your investment in the stock or mutual fund that they broker to you.

Your return on investment may not be as great, and the advice they give you might not be in your best interest. However, some mutual funds and stocks can only be purchased through a broker. In such cases their services are required to purchase the financial instrument in question.

If you use the services of your bank there are some facts to consider. When you talk about the options you have to invest your money, they will certainly recommend the funds they control themselves.

In some countries you can for example invest in a portfolio with shares and have a guarantee to at least get your initial investment back in 2, 3 or 4 years. Sounds great to many and when they say yes to invest, the bank charge 110%. In that way the bank make a profit and secure the costs from start. Do the bank take a risk? No, they cover themselves with other types of investments that function as an insurance.

So now your portfolio starts off with a backlog of minus 10%. Often the investment will recover and take back most of the initial loss and the guarantee makes many invest as they feel comfortable and secure when they invest in this way.

Back to the question about what kind of investments the bank recommend. Do they recommend other banks portfolios? I don’t think so. If you go to a car dealer that sell Ford, do they recommend you to buy a Lexus? Certainly not. A stockbroker working in a bank is not neutral, their job is to make you invest in the shares they make the biggest profit for them. If you make a profit too, that is fine but not their prime priority.

There are the authorities though to help the customer out. And there are rules and regulations about the way stockbrokers can and shall work. Depending on in which country you are investing the rules can vary. In some countries stockbrokers can have his own portfolio and the company where he works can also have an portfolio of shares.

This makes an eventual conflict arise whenever something special happens. There are numerous customers that suspect that they have been recommended shares in companies that will face problems and where the stockbroker wants to sell his own shares before the market drops. To prove these cases are almost impossible and to win them very rare. The number of transactions are also so big that it is almost impossible to trace and see a pattern. There might be just a few that went the wrong way.

Stockbrokers in general are behaving in a professional way and realize that their business will benefit most if the outcome for their customers are great. As a customer you are advised to check the results that a stockbroker have produced, trace their records. Do not look at the advertisements, the truth about the results are not there.

On the internet you can now use the statistics by independent companies that range stockbrokers, funds, shares etc. Here you can find facts vital facts for the outcome of your future incomes from investing.

How to Save Your Money Raises

It feels great to get a raise. It makes us feel like we’re being rewarded for all our hard work. It provides an incentive to keep doing a good job. And most of all, it puts more money in our pockets.

It can be tempting to start spending more money when we get a raise. Just a few extra dollars on each paycheck can make it possible to go out to eat once a week or start building up your wardrobe. But saving that extra money offers more long-lasting benefits, and it is relatively painless.

Think about it. You've probably been living on the pay you received prior to your raise for a year or so, and you survived that year. Its not much of a stretch to be able to survive another year without that extra money. Of course you wouldn't want to turn it down, but why not put it away to build an emergency fund, a college fund for the kids or a nest egg for your retirement?

And just imagine how much money you could save if you saved your raise every year. If you received the same percentage raise each year, you could put away over twice as much out of each check next year as you did this year. The following year, you could add a little bit more to it than you did the year before. As long as you can live on the same amount of money, you can increase the amount you save each year.

While you’re saving your raises, consider adding your bonuses to your savings as well. Its tempting to go out and spend like crazy when we get a windfall of money, but its smarter to save it. Bonuses are money that we usually do not include in the budget, so we probably won’t miss them.

How to Save Your Raises

There are many ways we can put money into savings. But which is the best vehicle for saving raises and bonuses? That depends on your goals.

When it comes to practicality, you cannot beat investing in a 401K retirement account. 401K deductions from your paycheck are tax-free, and you will never have to pay taxes on that money unless you withdraw it before you reach retirement age. Many employers also match your contributions up to a certain percentage or dollar amount, so you are essentially getting free money.

When you get a raise, you may be able to increase your contribution by the dollar amount of that raise. Or you might have to raise your contribution by a certain percentage. Your human resources department should be able to help you adjust your contribution to meet your goals.

Investing your raise in a college savings account might be a good idea if you have kids. Or you may choose to invest in stocks, bonds, or other investment vehicles. If you have more than one goal in mind, you might choose to divide your raise up among several savings options. If possible, consider having your contributions deducted from your checking account shortly after you get paid so that you’re not tempted to spend them.

If you’re looking for a way to save some money but cannot seem to make room in the budget, saving your raises could be the answer. Instead of adding the extra money into your budget, you can simply send it directly to savings and forget about it. In time, you can save up a substantial financial cushion.

How to Shop for a Car Loan

Shopping for a car loan requires time spent researching various options. Lets take a look at a few of these options.

Lets assume you are purchasing a new car from a dealership. Odds are before you leave the lot with your new car, you will be escorted into the financial office where you may be asked to sign up with a specific insurance company. While this may save time and, in some instances money, you may wish to shop around and ascertain if there are more affordable rates out there.

Shopping around for the most affordable rate is a good idea. Where do you begin? Call or visit your bank. Ask about their car loans and interest rates. If you have obtained other loans from your bank, they are more inclined to offer you the best rate.

Also, check other banks in your area. They may offer slightly lower rates than your bank and perhaps you can use this lower rate as an incentive to your own bank to work with you.

Another option is to check with finance companies. Keep in mind, however, that their interest rates may be higher due to the fact that they work independently. That is, they borrow money at lower rates and then hike it up to consumers.

Credit unions are another option you can check. If you are a member, you can enjoy reduced rates on loans.

Online websites also offer a wide range of loans and interest rates. However, ensure that the company is legitimate, has a telephone number and address on its website, and is an approved licensed entity. It should be noted that if you do decide to use online websites, you may be inundated with emails and phone calls, particularly if the information you provide is given out to third parties.

Finally, you may wish to consider a home equity loan. There are two benefits using this option. One; the interest rate may be lower, and two; you can deduct the interest on your income tax. Here too, there is a risk - if the mortgage payments cannot be made, the home may be placed in jeopardy. However, with a car loan, the most you can lose is the car.

Employee Rights Attorneys: What Do They Do?

In a perfect world, working to make a living would be trouble-free. We couldn't have to worry about discrimination in hiring, fair compensation or unfair termination. But the working world is far from perfect. And that's why there are employee rights attorneys.

Lawyers who specialize in employee rights can help us with a variety of issues. They know the laws that govern what employers can and cannot do, and they can help employees negotiate or file suit if necessary. Here are some of the things an employee rights attorney can help you with.

* Discrimination : Employers are not allowed to discriminate against employees or job applicants on the basis of age, gender, race, social class, money, national origin or religion. They also may not discriminate against the disabled if it is possible to make reasonable accommodations for them in the workplace.

* Privacy : Employees have certain privacy rights that must be observed in most states. Generally, possessions and storage lockers may not be searched by the employer, and he may not listen in on phone conversations and voicemail messages. Email and Internet usage while at work, however, may be monitored.

* Harassment : Employers must not harass employees, and they must not allow co-workers to harass one another.

* Safety : Every employer must provide a safe work environment. Safety hazards must be avoided as much as practicable. Dangerous substances must be labeled, and Material Safety Data Sheets must be available.

* Fair wages and breaks : Employees must receive fair wages for work performed. Laws regarding overtime pay must be observed. Employers are also required to provide breaks as set forth by law.

* Whistle blower rights : Employees should not be victims of retaliation from the company if they make complaints.

* Leaves of absence : Under the Family and Medical Leave Act, employers must allow most employees to take a leave of absence for up to twelve weeks for medical reasons, or to care for a sick family member. The employer is not required to provide pay during this time, but must hold the employee's position or an equivalent one until he returns.

* Termination : Employers must not wrongfully terminate employees. They may also be required to provide certain severance benefits according to contracts or company policy.

* Severance packages - An employee rights attorney can also help workers negotiate severance packages. This is important if the employee feels that he is not getting a fair shake when his employment ends. Even if terms are spelled out in a contract or handbook, an attorney may be able to help you get more benefits.

If you are experiencing trouble in the workplace, an employee rights attorney can help protect your rights. And if your employer takes adverse action against you because you obtained representation or filed suit, your attorney can help you retain your job or receive compensation.

Equal Pay Act Explained

In decades past, gender discrimination in the workplace was rampant. It was perfectly legal for employers to pay women less than men who were in the same position, even if their seniority and quality of work were equal. Newspapers even published job listings for men and women separately, and the same jobs advertised for men were often advertised for women with lower pay.

Pressure to give women equal pay for equal work began during World War II, when more women began to enter the workforce in the absence of men who were in the military. But it was not until two decades later that a law was passed making discrimination in pay illegal. The Equal Pay Act went into effect on June 11, 1964.

The Equal Pay Act is an amendment to the Fair Labor Standards Act. Although intended to help women in the workplace, the law states that neither sex may be paid less than the other for the same work when everything else is equal. This requirement may not be avoided by using different job titles for equivalent jobs.

Rulings and Amendments

There have been many court cases involving the Equal Pay Act. One of the most important was Schultz v. Wheaton Glass Co., in which it was ruled that jobs need only be substantially equal, not identical, to require protection under the Equal Pay Act. Corning Glass Works v. Brennan determined that paying women less because they would receive less under the going stock market rate was illegal. And Ledbetter v. Goodyear set the rules for the statute of limitations for equal pay lawsuits.

Under Ledbetter v. Goodyear, plaintiffs had 180 days from the date pay was agreed upon to file a lawsuit under the Equal Pay Act. So if a worker did not discover inequality in pay until after that time frame, she had no recourse. But the Lilly Ledbetter Fair Pay Act of 2009 amended the law so that the statute of limitations is reset with each discriminatory paycheck. That means that workers now have until 180 days after receiving their final paycheck to file suit.

Legal Defenses

In order to establish a case under the Equal Pay Act, an employee must prove that wages differ between sexes for equal work that requires equal skill, effort and responsibility, and that working conditions are similar in each cited case. If these things are proven, the employer may avoid liability only by proving that wages are determined by seniority, merit, production quantity or quality, or some other factor besides gender.

The Equal Pay Act has narrowed the wage gap between the sexes, but women still earn less than men. This is often attributed to lower raises and shorter duration of employment for women. While the Equal Pay Act has improved pay for women, there is still plenty of room for improvement.

Fair Credit Reporting Act Explained

Your credit report can affect numerous aspects of your life. It impacts your ability to get credit and the amount you pay for it, but that's not all. It can also affect your insurance rates, employment prospects and even your ability to rent a place to live.

Keeping our credit reports accurate and private is of the utmost importance. This is why the government created the Fair Credit Reporting Act (FCRA). Enacted in 1971, this law contains several provisions that govern how credit reports are maintained and used.

Terms of the FCRA

* Only certain organizations with legitimate business reasons may request an individual's credit report. These include creditors, employers, insurers, and in certain cases, government agencies. Other parties can only receive your credit report if you request it for them.

* Credit reporting agencies may distribute names and contact information of those for whom they maintain files for marketing purposes. You can, however, request that they do not distribute your information, and they must comply. Requests may be made by phone or mail.

* If a lender or other party denies credit or takes other adverse action based on information contained in a credit report, they must notify the consumer in writing. They must also provide the name and contact information of the bureau from which the report was obtained.

* Consumers are entitled to a free copy of their credit reports if they are denied credit or subjected to other adverse action based on information contained therein. They may also receive one free copy of their report from each bureau once a year under the Fair and Accurate Credit Transactions Act, an amendment to the FCRA that was passed in 2003. Credit bureaus may charge a fee for additional reports.

* Errors on your credit report may be disputed by writing to the credit bureau. The credit bureau must investigate your claim within 30 days, and if they find that the information was erroneous, they must remove it and notify the other major credit bureaus. If they do not remove the information, you may add a summary explanation to your report stating why you disagree with the decision.

* The amount of time that negative finance information may remain on a credit report is governed by the FCRA. Delinquencies must be removed no later than seven years from the original delinquency, and bankruptcies must remain on the report for no longer than ten years.

The FCRA makes it easier for us to keep track of the information on our credit reports, and it protects us from improper use of that information. Knowing our rights under this legislation can help us maintain an accurate credit report, which will make it easier to obtain credit.

Maternity Leave: Know Your Rights, but Also Know the Financial Impact

Having a baby is a blessed event, but it also leaves a mother-to-be with a lot of things to think about. She needs to outfit the nursery, buy baby clothes and diapers, pick out a name and much more. And if she is employed, she needs to consider how to handle maternity leave.

As in most countries, United States law gives pregnant women certain rights when it comes to employment. The Family and Medical Leave Act (FMLA) of 1993 governs most aspects of maternity leave. But it's important to realize that the law has a number of limitations.

Under the FMLA, new mothers are entitled to up to twelve weeks of leave. The leave may begin before or when the baby is born. The employer is required to hold the mother's job or a comparable one for her in her absence, as long as she does not exceed the twelve-week time limit.

It's important to remember, however, that these requirements do not apply in all situations. Companies that have less than fifty employees do not have to grant maternity leave. Even in companies that are required to grant leave, the employee must have been with the company continuously for at least a year and have at least 1,250 hours of service.

Another thing that's important to understand about maternity leave is that employers are not required to pay employees while they are out of work. They are only required to continue paying for health insurance. Some employers choose to offer paid maternity leave, but they are under no legal obligation to do so.

Employers can also require those taking maternity leave to use vacation time and sick leave before taking leave under the FMLA. This will result in getting paid for part of your time off, but it will probably also leave you without paid time to use once the leave is over. So if you have to take a day off because you or your baby are sick, you probably will not receive compensation.

Unpaid maternity leave can put a strain on the budget, especially during a time when you are experiencing many new expenses. That's why it's so important to know your employer's policies ahead of time. If you will not be paid during your leave, it's crucial to save up some money to tide you over until you get back to work.

It's important to take the time to recuperate and bond with your baby after his birth. But it's also important to make sure you have enough money to make it during this time. So be sure to study your employer's policies carefully, and if you will not be paid, make sure you have the reserves to make it on a reduced income.

A Rollercoster Stock Market and Rising Penny Stock Opportunities

It's been a wild and wooly couple of weeks on the international stock markets. But is the recent slide grinding to a halt...or just taking a breather before tumbling some more? And more importantly, what does it mean to astute penny stock investors?

Wall Street recently stumbled to its worst week of the year, and global stock markets fell dramatically on concerns about rising interest rates and slowing growth. 

Stocks have been ailing because penny stock investors fear the Fed could be so focused on inflation that it ignores signs of an economic slowdown, raises interest rates too high and sends the economy into a recession.

And that decision will have a direct impact on the penny stock market. Higher interest rates hurt penny stock prices because investors believe it will curb economic growth and corporate profits.

But why is inflation heating up? Higher energy costs. Traders and penny stock investors are also worried that with the hurricane season officially under way, Gulf Coast refineries and oil production sites could be damaged again this summer and fall.

And higher interest rates have the ability to affect the entire economy. Finance charges on credit cards will rise. So too will rates on mortgages and home equity loans, putting additional pressure on homebuyers and a softening housing market. Ultimately, it will cost more to borrow for expansion.

But does this signal doom-and-gloom for the penny stock market? Au contraire. While the temptation to sell everything can be overwhelming, some see this as a great opportunity. "I would not be selling. I would tend to be buying," said one New York analyst.

So how exactly is this an opportunity? It just so happens that many companies caught in the market's downward spiral are cheaper than they were a few weeks ago. And as any seasoned penny stock investor will tell you, buying a great penny stock when it's been beaten down isn't a bad way to make money over the long haul.

If you can stomach some of the volatility that is. While many blue chip investors have difficulty handling the market's unpredictability...it's par for the course.

So, "snap out of it," said another watcher. A month of dizzying selling has brought the markets into an attractive range. Is it possible the markets will fall more? Absolutely. After all, no penny stock is a sure thing. But one thing is certain: "Stocks are much cheaper now than they were two months ago."

The Price of Parenthood In Our Society

We all have different goals in life. Some of us want to be doctors or lawyers, while others want to explore distant lands. But no matter what we want to do or be, many of us have one goal in common: we want to raise a family.

When considering starting a family, it's important to know the financial impact it will have on you and your significant other. Being prepared for the costs of parenthood will allow you to enjoy it more fully, without constantly worrying about how you're going to pay the bills and buy the things your children need.

Not only do kids increase the expenses we already have, they also create new ones. Here are some of the things you can expect to spend money on:

* Diapers - One of the first surprises most new parents face is the cost of disposable diapers. By the time your child is potty trained, you can expect to have spent a couple of thousand dollars on diapers alone. You can, however, save a significant amount by using cloth diapers if you don't mind laundering them.

* Clothing - In the first few years, children grow very quickly. It seems that no sooner than they break a new piece of clothing in, they've outgrown it. Even if you buy second-hand, clothing costs can take a big bite out of the budget.

* Childcare - Somebody has to take care of the kids at all times until they are old enough to stay home alone. If you do it yourself, that may mean quitting work or working fewer hours. If you pay someone else, it could run to several hundred dollars a month.

* Healthcare - Every child gets sick or injured at some point. Even if your child were in perfect health, he would still need immunizations and checkups. If you have insurance this won't impact your budget too much, but the insurance itself isn't cheap. When you switch from a couples' plan to a family plan, your health insurance premiums could as much as double.

* Food - Feeding kids can get very expensive. Breastfeeding can reduce costs during the first year or so of life, but once your child begins to eat solids, the grocery bill seems to grow exponentially. Growing kids need a surprising amount of food for their size. And parents often resort to serving convenience foods to save time when their children get older, which can be even harder on the wallet.

* School and extracurricular activities - When our children start school, we incur a whole new set of expenses. They need backpacks and school supplies. They need money for field trips. There are sports, band and other expensive extracurricular activities. And let's not forget about college!

These basic expenses are only the beginning. Kids also need books and educational toys to help their minds develop. Their rooms need furniture and DÈCOR. As they get older, they start asking for video games, cell phones and other gadgets. The list goes on and on.

Parenting is very rewarding, but it's also expensive. Unfortunately, many parents do not consider this until they are struggling financially. If we start saving long before we plan to have a child, we can greatly reduce the impact on our finances.

Create a Vacation Budget and Stick to It

Taking a vacation is supposed to help alleviate stress, not add to it. But for those of us who do not have unlimited funds to work with, it can do just that. Planning fun for the whole family and providing for transportation, meals and accommodations can be tricky, and paying for it all can be even trickier.

We all know how important it is to have a household budget. But we tend to forget about budgeting when it comes to vacations. If we can create a vacation budget and follow it closely, it can help us enjoy our getaway without worrying about money.

How Much Can You Afford to Spend?

In order for a vacation budget to work, we must first determine how much we can afford to spend. If you have money set aside in a vacation fund, this might be the easy part. But if you are working with money from general savings or a tax refund, it will require some thought.

Spending every penny you have that is not required for bills on a vacation is not a good idea. Having an emergency fund is important for any family. If you already have plenty of money put away for emergencies and the bills are paid, using your tax refund for a trip is not such a bad thing. Otherwise, take care of the more important stuff before you allocate funds for vacationing.

If you just have a savings account but have not decided how you will use the money, resist the urge to spend it all on a vacation. Setting some money aside for a rainy day will do you a lot more good than hitting all of the hottest spots on your trip. The general rule is to have at least enough money put back to pay all of your expenses for at least three months. If you are nowhere near that point, try to keep enough to at least have a good start toward that.

What to Include in Your Budget

Vacation expenses have a way of sneaking up on us. And that is exactly why a budget is so important. It forces us to consider all possible expenses and account for them so that there are no surprises. Here are the basic expenses you will need to account for:

* Transportation - This could be airfare, bus, or train fare, or gas for a road trip. If you are not taking your own vehicle, you will probably also need to rent a car when you reach your destination. And then there is the gas you will use while you are there.

* Accommodations - Unless you are doing an at-home vacation or staying with a friend or relative, you will have to pay for a place to stay.

* Food - You have to eat while you are on vacation. Some packages include a meal plan, but if yours does not, you will need to budget for your meals. You can save money by taking your own food to prepare if you rent a place with a kitchen.

* Entertainment - This is a biggie. You have to pay to get in to the beach, amusement park, or whatever other attraction you are visiting. But there may be times when you or other family members want to do something else, so be sure to account for that as well.

* Shopping - When most people go on vacation, they come home with souvenirs. So it is important to set aside some money for them.

Money should not be a constant worry when you are on vacation. If you set a budget and stick to it, it does not have to be.

Priority Setting During Hard Times

Most of us have experienced times of financial hardship at one time or another. Sometimes it's because of layoffs or reduced working hours. Other times, it's due to large, unexpected expenses. But no matter what the reason, financial difficulties necessitate taking a look at our priorities.

When money is no object, we often spend it on things that we do not really need. We might go out to fancy restaurants every week, buy designer clothes or buy expensive high-tech toys for the kids. But when our disposable income is reduced, we must often give those things up to have enough money to pay the bills and spend on necessities.

Each individual or family will have slightly different priorities. But here are some things that should always be near the top of the list:

* Savings - When funds are limited, it might seem counter-productive to think about savings. But this is actually the time we need to concentrate on savings the most. When there's little wiggle room in the budget, unexpected expenses can be devastating. Keeping a little money out of each paycheck may or may not pay for whatever comes up in full, but it will help.

* Housing - Having a place to live is something most of us take for granted, but when times are tough, keeping up the payments can be difficult. Try to pay the rent or mortgage early if possible, or at least make sure it's paid on time. If you own your home, homeowners insurance must also remain current. 

* Transportation - If you live close enough to work to walk or ride your bike there, transportation may not be an issue. Otherwise, it's important to keep enough money to get to work and back so that you don't end up in even worse financial straits. Using public transportation, if possible, is less expensive than driving. If you must drive, try to find someone to carpool with. And don't forget about car insurance and maintenance.

* Heat and electricity - If you live in a climate that experiences cold weather, having heat is a must. Electricity is also important so that you can safely store food and cook. If it comes down to choosing which bills to pay, these must receive very high priority.

* Food - Everyone has to eat to live, so having food is a top priority. But if you're having trouble making ends meet, food pantries and soup kitchens can help. If your income is low enough, you may also qualify for food stamps.

* Health care - Doctor visits are not cheap, especially if you are uninsured. If you find yourself in need of health care but are unable to pay for it, look for free or low-cost clinics in your area. Most use a sliding fee scale that's based on income, and some will allow you to make payments if necessary.

When there's barely enough money to go around, setting priorities is crucial. You may have to cut unnecessary expenses such as cable TV and gym memberships, at least temporarily, to have enough money for necessities. If you still have trouble meeting basic needs, remember that help is available. 

Household Budgeting Plan: Everyone Should Have One

Do you ever feel like the money you earn is just passing through on its way to someone else? A lot of us do. All too often we spend money as quickly as we get it. Some of that money goes toward necessities such as food and shelter, but a goodly portion of it often goes toward unnecessary items.

Whether you can't seem to save up any money for a rainy day or you're having trouble getting the bills paid, a household budget can help. Even if you don't seem to have any money problems, a budget can be of use. Carefully monitoring your spending allows you to save money for retirement, your kids' education, and any other goals you may have.

Creating a Budget

Setting up a budget is not as difficult as it sounds. All you have to do is list and prioritize. It may not be the world's most exciting activity, but it's quick and painless.

The first thing to do when creating a budget is to make a list of all of your monthly income. This includes your pay from work, any self-employment income, and interest and dividends from investments. Some months you may have extra income such as bonuses or tax refunds. And if your work hours vary, your pay will fluctuate. So it's important to figure the amount you have coming in each month.

Once you've listed and totaled your income, it's time to list your expenses. Start with the necessities that are the same each month, such as rent or mortgage, car payments, insurance and loan and credit card payments. Then figure variable expenses such as electricity, groceries and gasoline. You might want to compute an average over several months to use for these figures, use the highest figure you have on record, or estimate.

Last on the list should be discretionary expenses. These are things you can live without such as entertainment, hobbies and collectibles. Use a realistic figure for these items so you can see where you stand.

Add up all of your monthly expenses. Are they more or less than your total monthly income? If they're less, you're off to a good start. If they're more, you have some work to do. Look at your discretionary expenses and see where you can cut back. If you cut them out completely and still come out in the red, see if you can find ways to cut back on your variable necessity expenses. Some ideas include driving less and using coupons.

Once you have your expenses at a manageable level, you should have some extra money left over. If you have loans or credit card balances, consider using that money to pay a little extra on them. Doing so will reduce the amount of interest you pay and get you out of debt faster. Otherwise, the best course of action is to put it into savings or investments. This will help you be prepared if something unexpected happens.

A household budget plan will help you track your expenses and determine where adjustments need to be made. It can put an end to juggling bills and ease financial stress. If you don't have a budget, now is as good of a time as any to make one.