A Primer for Avoiding Financial Waste and Living on a Tight Budget
The Talk with Your Family About Avoiding Financial Waste
If you have a family, the first thing you need to do is to get them to understand how avoiding financial waste helps a tight budget. Then, discuss what it means to live on a super-tight budget. Tell them they may not get many of the things they want, but they can get some.
A super tight budget is something that does not mean misery, it means you must be careful. This is a part of life, not bad, not good — just necessary to keep the budget moving in the right direction. As a matter of fact, you can tell them, because cost of living is high, everyone, in every income bracket lives on a super tight budget.
The Talk with Yourself if You Are Single And Budgeting on a Tight Budget
Stop waiting for prince charming. He does not exist. Sure, you have the chance of meeting a nice guy. But you will be better served in preparing yourself to take care of yourself first. If you happen to find a nice person you have a lot in common with, then you will be prepared for the relationship. Until then create your own super tight budget for success.
Budgeting when you are single, will make it easier to budget when you are married. A tight budget is king and always will be for a low budget. If you develop good habits now, you have a better chance of identifying a partner who does the same, before a permanent relationship.
No one thinks they will get divorced or separated after marriage, but many do. The number one reason divorce lawyers’ site as the reason they give is financial incompatibility.
That information was there at the beginning but either, they did not get to know each other long enough or well enough to see it. Figure out how you can live on a tight budget before a serious relationship and do not get involved unless your partner does.
Trim the Fat from Your Spending Budget
Start today, trimming the fat from your budget. You are an intelligent person. There are many places where you can trim fat from your budget. It requires that you be open and honest with yourself. Take a deep dive into your spending habits and find where you can trim the fat from your budget without starving or not having enough gas or train fare to get to work.
Look in your closet and identify clothes or shoes you have not worn for months. Look in your cupboards and identify things you have not used for years. These are all things you could have done without, or you can sell off to make money. It will also help you to identify how to trim the fat from your budget by not overspending in the future.
Not All Good Things Are Good for You
There are many things that seem good for you, but if you cannot afford them, they may not be. A case in point; a great car, a comfortable dress, a new apartment – if they are not comfortably affordable – they are not good for you. Analyze everything you think you may need and may make your life better. The goods may make you feel better, but you must have the money.
Remember, when you analyze things you need include all cost. For instance, car buying may include 1. Down payment, 2. Monthly payment 3. Gas cost, 4. Monthly, Quarterly and Yearly maintenance, 5. Insurance, 6. Parking. Where many people falter is when they leave out one of these costs when the affordability analysis is done. Because of these omissions, you can end up with a product you cannot afford. You can research mostly anything on google and ask advice from family, friends, or professionals you know.
Understanding Finances Is What Makes It All Work
Understanding finances is the key and the easier it will be to improve your finances. Because engage yourself into understanding finances you can live within your means no matter what your income. The less you make the more extreme you will have to get. I call it guerrilla budgeting. I am not saying that high income people do not have financial problems, they do.
In fact, some multi-millionaires file bankruptcy because they are not careful, live far beyond their means, and do not engage in understanding finances through study.
While other multi-millionaire’s feel they must budget everything they buy and do to stay within a comfortable spending range. Understanding finances by constantly reading, studying, and monitoring their money is the key to their success. No one has an unlimited budget for spending money.
Believe half of what you see and none of what you hear, verify
Lois Center-Shabazz
You Can Change the Way You Think About Money
Old habits die hard. Becoming efficient in living within your means with a tight budget and avoiding financial waste is not easy. But you must change the way you think about money if you are having financial difficulties.
If you have a habit of money mismanagement and financial waste it is even harder. But, with that said, there is a lot of help, a mentor can change the way you think about money. It starts with buying the car you can afford, then buying the home or condo you can afford.
And then of course understanding comprehensive financial management is the major key to change the way you think about money. There are many aspects to managing money and avoiding financial waste, even when your budget is tight. When you analyze your current financial situation, you will find that there are many ways to save money by elimination of waste also. Avoiding financial waste is a major key to living on a tight budget with success.
Do not Take Your Cues from Advertising Propaganda
One of the ways we get confused about buying habits is that we take our cues from the wrong places. This is where many over spenders make their mistake. They feel they must have everything that is advertised. Advertisers sell a “feeling”, telling you this is how you will feel if you buy this product. Of course, the feeling is always, so-called, “good”.
Do not be confused, you will not feel good if you cannot afford the advertised product. In fact, you will probably feel bad. Not all advertised products are bad, many in fact are good. The problem is the amount of information you get in a 30 second ad is not enough.
Do your research if you like a product you see in an ad. Find out if the product has quality, is within your budget, and does what it says. Most of all, ask yourself if you absolutely need and can afford the product.
Before You Buy Ask Yourself; Do I need this? Do I want this? Can I afford this? And will it last?
Lois Center-Shabazz
Finally, Put it Into Action with Help from an Expert
Get help before you need it, and your finances will be in the proper order. Everyone needs help when it comes to changing behaviors and identifying best practices for spending, saving, and budgeting, investing and wealth building.
Do not feel that you are different. The most successful budgeting folks got help before becoming successful. You can get help too, that is where I come in, contact me now and we can talk about how best you will be served. If you are anxious to get started, you can start here.
Old Habits Die Hard, Change Requires a Little Work
Lois Center-Shabazz
Buy Quality Products So Your Products Last
Do not get quality confused with cost. You do not have to spend a lot of money on products or services to get quality. But, if you do not want to replace your product or service often, you must buy quality. The more you replace products the more money you spend in the long run.
This is where products that appear inexpensive cost you more money than a good product. Your affordability index goes down over time due to wasted money. Purchasing the right way is another key to avoiding financial waste, living on a super tight budget, and understanding finances. You must change the way you think about money if you are going to financially successful.
3 Tips For Big Thing Budgeting for Groceries
Budgeting for groceries seems like a simple task. Make a list and buy what you need. Well, it usually doesn’t happen that way. If you are not precise about shopping, the list will be meaningless, and you will end up spending more money than you need to. Shopping the right way can save you thousands of dollars every year. Here is a short list of quick things you can do for big thing budgeting for groceries.
YOUR SHOPPING LIST
1. Shopping with a list is important, but the list must be well thought-out. You should decide what your menu will be for the week, comparison shop for groceries by using prices online or in your weekly sales paper.
It is best to use your list to shop the isles for grocery shopping is much less expensive than the end of isles, where new products are often displayed.
Shop within the confines of a menu. Know exactly how many pieces of fruits, vegetables, meat packages, loaves of bread, box of cereal etc. Know what you will pay for each item and stay within a strict budget.
BUY, PREPARE AND EAT IN A FEW DAYS
2. Buy and prepare only as much as you can eat within a few days. Food waste is a big reason for going over budget with your grocery bill. Clean your refrigerator at least once a month to closely monitor food use. It is even better to clean and monitor your refrigerator once a week if you have time.
Keep your refrigerator and cupboards well organized so food is used on a timely basis. Concentrate on fresh foods to prepare, not junk food or food that is already prepared.
SHOPPING WITH COUPONS WILL HELP
3. Coupons will help if you buy items you need. In other words, don’t use coupons to purchase items just because they are on discount. The next money saver is the sales paper and prices online. Another option is extreme couponing if you have time.
The savings comes at the cash register, when you have product for weeks, and when you sell product that is in excess. Buying in bulk also saves money on food, but you have to calculate your savings, it doesn’t always work. Shop with a calculator.
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BE VIGILANT ABOUT SHOPPING FOR GROCERIES
Being vigilant about shopping and budgeting for groceries will make a big difference in your grocery bill. The savings can be enormous if you shop the right way.
Shop when you are calm and hopefully you are not bothered by kids sneaking expensive groceries into the cart. When you follow these simple guidelines budgeting for groceries and saving money will become easy.
Get organized with your budgeting by using my award-winning BUDGET PLANNER, WITH THE COMPRENSIVE FANTASTIC FINANCES COURSE.
Lois Center-Shabazz | Course Delta Agency
Interested in a Free Discussion about how I can help you with Fantastic Finances? Let’s Chat – Make an Appointment Here
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7 Steps of Budget Planning to Avoid Financial Disasters
Budgeting Planning to Avoid Financial Disasters
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The First Step of Budget Planning to Avoid Financial Disasters
Budget planning to avoid financial disasters starts with not buying too big with the big stuff such as cars and homes is one of the biggest reasons many cannot withstand a small business or personal financial disaster. Many of us forget that there are affordable ways to buy homes and cars to avoid future financial disasters. What happens, is that these two items are based on way too much emotional buying. Keep your head on straight by researching before you purchase. Learn more on my instagram.
Ask questions like; Do I really need a new car? What will the warranty maintenance cost on my new car? What if I purchase the same car 3-4 years old, what would the savings be? If you have a job, no matter how secure you think you are, that security could be in jeopardy at any time. So, purchasing a car that you can buy cash or with very low payments will be the better option. The same holds true with a home, if it is too large, with a stressful payment, the smaller home with the lower payment, that carries less stress may be a better option.
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Stay Properly Insured
The second step to budget planning to avoid financial disasters seems to be plain old common sense. But, sometimes people with a home and car let important insurances lapse due to illness or thinking they don’t have the time, they let important insurance lapse, due to simple negligence. Stay fully insured with a car, home, health, life, and if you own a business – all applicable business insurance. A small business lawsuit should always be covered with business liability insurance, not your personal assets – so, don’t take the chance.
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Don’t Waste When Times are Good and Income is High
We have had many economic downturns and upturns in the past several decades. The one regret I have heard a lot when I talk to people who make a lot of money when times are good is — “I lost my mind when I had a lot of money, and spent without regard to the reality to the future, then a financial disaster came”. Because nothing is guaranteed, even good times, it is important to handle your money as if the money will stop anytime, that will help protect your assets.
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Let Your Kids know Money Doesn’t Grow on Trees
There are some parents who, despite much evidence to the contrary, feel it is important their kids need to have all the material trapping they did not have. It is not necessary, and it is not true. Your kids will literally begin to think that money grows on trees and drops from the sky. Your kids know you love them when you give them positive time and attention, so it is not necessary to spoil them, and it may lead to a financial disaster. You can reward them without giving them too much, some parents to the tune of going bankrupt. At this point your kids probably are not aware of potential financial disasters, but at least you can start to teach them money skills.
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Have a Sick Fund for Days Not Covered by Extended Illness
Most jobs have sick leave, most small businesses have no sick leave unless they create it themselves. As an employee, you may run out of sick leave if you have an extended illness. Save money in a sick fund to cover an extended illness. This is especially important for small business owners.
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Make Your Savings a Bill
Create a general savings fund and treat it like a bill. You are probably seeing a pattern here. Saving money as several bills is just as important as paying existing bills. It should be a part of a general budget plan for financial disasters.
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Don’t Borrow From Your 401k, Borrow From Your General Savings
As far as I am concerned, borrowing from a 401k is a budget planning financial disaster unless you are suffering from a fatal illness, borrowing from your 401k should not be a consideration. You should have an automatic saving account for financial disasters that you can borrow from.
The 7 steps of budget planning to avoid financial disasters will above will get you on the way to solid financial success.
Do You Need a Budget That Works and it Last?
Use This Simple, Easy, and Magnificently Organized Budget Planner
Lois Center-Shabazz | Course Delta Agency
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7 Tips for a Budgeting Basic Bounce
Budgeting basic may be defined as follows. Ever heard the expression, “I don’t know where my money goes” another is, I don’t have the things I need and can’t afford any of the things I want”. If this is a problem you have, you may want to look at your budgeting basic skills, and read this budgeting advice, paying close attention to the process of creating your optimal budget, and then sticking to it.
1. Start With the Essentials
Your budgeting basic should include your essentials to start with. You must have a home, food, and water, at a minimum to exist. So, those are the things you should budget for and pay for, first.
A) Rent, Food, Utilities, Car Payment (if you must have a car for work)
A Budgeting Bounce Can Take Your Budget Over the Top --Lois
If you don’t pay for insurance your car can be impounded and your home would not be replaced if it is destroyed by fire. So of course, insurance is an essential budgeting basic. You could lose your credit rating if you don’t have car insurance and an accident is your fault. The other person’s insurance company can charge you with the payout and lien your credit. In most, if not all states liability car insurance is the law.
B) Homeowners insurance, or Renters insurance, and Car insurance
If you become ill, could lose your home and assets to a hospital lien? Possibly. To prevent this, you must have health insurance always as a budgeting basic. If you do not have health insurance, in most cases a hospital will treat you and charge the bill to you, with collection calls to pay up, until you satisfy your bill.
C) Health Insurance
If you have loved ones, that is children or a spouse who will need help with bill paying and life maintenance in the event of an untimely death, you should have life insurance, it can be an inexpensive policy, but it is wise to have something.
D) Life Insurance is a budgeting basic
2. Make Your Hierarchy
Make a hierarchy of your most important to least important needs. Make a list of the most important to the least important budgeting basic items you pay monthly. Try to pay the top 3-6 items, no matter what, even in the event of a financial emergency, and the bottom 3 that can be temporarily eliminated in a dire emergency.
Slay Your Finances Like Your Life Depended on It, --Lois
3. Your Savings Please
You will have unexpected expenses from time to time, so an emergency savings may cover those expenses, it will also be your cushion for your top three monthly expenses. Make this savings account a bill that is taken from your checking account or your check monthly so you don’t have to stress paying saving it. Even if it is only $50 per month, start saving now, it adds up. If you can afford more, put in more.
4. Filling in Gaps
Fill in gaps for your quarterly, semi-annual, and yearly items. Some of your expenses will be quarterly, some may be twice yearly, and others once a year. Create savings for these items, pull the money out monthly to fund these irregular accounts when they come due. When the item comes up, take the money from this account, instead of from your monthly pay- check.
5. Maintenance Savings Budget
A second emergency account should be for general maintenance. This is a big item that throws off many budgets. Instead of borrowing money for a car or home repair, borrow it from your maintenance savings budget. This saving account could also include your vacation savings.
6. Your Peace of mind
Every time you think of going off your budget, think about the peace of mind you will get from having a balanced budget, paying your major bills with ease every month, and having extra to cover unforeseen expenses. Your strict organization is the key to a great budget, this is a general organizational plan. You will create a specific plan for your budget, allow this plan to be your guide.
7. Get Help With Your Budget, Don’t do it Blindly
Pick up your free personal finance gifts now, track your spending and plug holes in your budget for extra money toward expenses or savings. Use the simple but powerful, Budget Plan to guerrilla plan your budget with an extreme organization now.
Lois Center-Shabazz | Course Delta Agency
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7 Small Business Ideas That May Mean Your Ready For Business
Your Small Business Ideas
Whether or not you are successful in business appears to be closely correlated with your type of business. The U.S. Census Business Dynamics database plotted a five-year survival rate of several industries since 2005.
The research showed the success of rates of industries from construction to mining with a success rate between 36% to 51%.
Then there are those who operate businesses that do not make a substantial profit. They are working long hours and spending most of the money that comes into the business on overhead; rent, supplies, salaries, advertising and marketing.
These people did not do their homework to find out the demand and cost of the business. For some of these people demand is low, and the cost is too high; but some just don’t know how to find their interested market.
Small Business Ideas
Here are some questions you can ask yourself before you think about starting a business, you will also get several small business ideas and tips.
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1. IS IT TIME TO START A BUSINESS YET?
If you have worked in every department of a small business as an employee and understand how every single department works, then you may possess this one very important factor for success in your own small business.
If you have managed to master the skill of managing money, from small to large amounts, you posses a skill that will help you manage a business.
If you have worked in an industry long enough to understand what works in that industry to make profits and what does not, then you have acquired another skill that makes a small businessperson successful.
If you understand the team concept, and that you will have more success working with a team of people than alone – this is yet another skill you possess.
If you have ever done an analysis of business services or products needed in your area or on the internet, you possess a crucial ingredient for business success. Many businesses start up and fail because the market has been saturated with the product or service they sell or they don’t understand how to bring this market into their business.
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2. DO YOU PLAN TO BUY A BUSINESS OR START ONE OF YOUR OWN?
Both starting your own business and buying a business carry risk. In starting your own small business you need to have the qualities above and understand small business in general. The main issue is that it takes awhile to build a small business. You have to find customers and build the customer base. The hours are long and concentrated.
When it comes to buying a business, you have to understand how to evaluate the business. If it is a franchise-this is a type of leased business; questions to ask, Is it profitable? –the costs are extremely high with franchises. If it is a privately owned business, do I have an attorney and accountant that can do “do diligence” on the business, they must engage the following small business ideas to facts;
- Properly priced,
- There are no liens or encumbrances,
- There are no pending lawsuits against the business.
- There are no disagreements with prior business partners
When you buy a business, you need to spend money on a forensic accountant to determine if the business has produced what they are claiming. It is wise to spend money on an investigator and attorney to find out if the business is clear of any wrongdoing. If you don’t have the funds for this, or don’t feel it is necessary, you could end up with a worthless business, it has happened to many before you.
3. DO I UNDERSTAND THE COST OF SMALL BUSINESS?
One of the most difficult concepts for beginners in business to understand is cost. Some businesses have cost of 90% of business income and some have cost of 50% of business income. No matter what your business, you will have overhead cost. Businesses go bankrupt all of the time. One major reason is that the cost becomes more than the business income.
The following costs are important to understand before you buy or start a small business. These small business ideas should be thoroughly researched before you start thinking about business.
- The rent or lease cost and terms of both.
- The cost of equipment for the business.
- The cost of supplies used and ordered for the business.
- The cost of producing the product or service, (materials, time, labor).
- The cost of the employees: average salaries, employee taxes, employee benefits
- Independent contractors cost
The cost of insurances for the business (product liability, injury liability on premises, workman’s comp, health, malpractice insurance etc.)
4. HAS THE NEED FOR THE SERVICE OR PRODUCT BEEN ESTABLISHED?
Has the market been consumed with small businesses of your same type?
If you are starting a new business, have you tested the need for your product by starting to sell it and building customers at a flea market, out of your home, or small office. If you increase your sells over time and get repeat customers and a growing customer base, this is one sign the product is in demand.
Have you tested different price points with your business product to see what sells the most, and you still get a profit of at least 20%. This is low, but at least it is a profit.
Purchasing a business works best when you have worked in that business, You have the opportunity to see the need, you see the profitability, and you understand the product.
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Avoid Bankruptcy when you buy a car — Use This Simple Course To Understand Car Buying the Right Way
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5. HOW DO I REACH MY CUSTOMERS?
Advertising is very expensive. Marketing is very difficult, and can be expensive. Marketing tends to be more
effective than advertising because if done right it is more believable.
Studying advertising and marketing effectiveness is crucial. You can spend too much if you are not educated about both. The marketing of your small business ideas are more cost effective than advertising.
6. DO YOU UNDERSTAND THE MOST IMPORTANT PERSON IN YOUR SMALL BUSINESS
THE CUSTOMER IS KING, has been, and will always be the most important phrase you will ever hear.
If customers don’t get the product or service they are paying for, they will leave. If your business has little or no customers, it is a hobby. In some cases it is a very expensive hobby.
The next most important people in the business are the employees. Well trained and well appreciated employees are worth their weight in gold. They are a part of the team that will help you to achieve success.
As you can see there is a lot to think about before you think about seriously starting a small business. The research, development and previous experience will help you decide if the rigor of your own small business is something, you can do successfully. The most important person in your business will implement your small business ideas successfully.
7. WORK, WORK, WORK AND BE REALISTIC ABOUT EVERYTHING
Do your research, seek out advice from successful people, put in the hours, and listen when you get advice. Before you start a business you MUST understand budgets. Use the “Course For Fantastic Finances” to get started.
Lois Center-Shabazz | Course Delta Agency
Interested in a Free Discussion about how I can help you with Fantastic Finances? Let’s Chat – Make an Appointment Here
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Big Thing Budgeting in 7 Ways
How to Budget for the big things, use what I call Big Thing Budgeting.
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USE BIG THING BUDGETING TO GET OUT OF A MOUNTAIN DEBT: CREDIT CARDS, MEDICAL BILLS, PREDATORY LENDING
For Individuals, Couples and Small Businesses, you can get out of a mountain of debt if you focus like a laser beam on getting debt-free. It is not easy, but it is possible.
It will first require that you stop buying anything you don’t need. Get rid of the “I Got to Have it Syndrome”.
Start by keeping a log and inventory of your buying habits. Then slowly start to purge spending you don’t need to do. When you take an inventory of your buying habits, you will be surprised at the amount of unnecessary buying you do.
Second, you must start paying off one thing at a time in a big way but pay on other bills at the same time. Start with the smaller bills, pay extra to those bills with the most you can afford, then pay a small amount extra to principle to your other bills — at the same time.
Big Thing Budgeting Shaves Thousands Off Your Budget -Lois
You will see bills drop off one by one. Now, for the larger bills, you may have to start selling things you don’t need. From cars to yard sells, is where you can sell things you don’t need.
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BUDGET TO BUY A CAR
Save money for your next car while your current car is in good shape. Then, research the cost of the car you are interested in. Set a budget, then go through the internet and your local newspaper to see prices and figure out monthly payments, if you plan to finance. If you don’t plan to finance, you will see how much you need to save and for how long, to pay cash.
Consider buying a certified used car at a new car dealer or a one-year-old car from a new car rental agency. Make sure you know the new car prices and options on a new car so you can compare it to a new-used car with options.
Use Kelly blue book or kbb.com, to check for cars that are good for buying as used cars. You can also check for general pricing of new and used cars.
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BUDGET TO BUY A HOME
Home buying requires doing a lot of research to discover 1. how much you can afford to pay for a home, 2. how to find a good mortgage company, bank, or credit union. The best place to start is your local credit union or bank due to the savings in fees, cost and time. 3. How to buy a quality home, and 4. How to get it properly inspected – some inspectors work for the realtors, so many won’t tell you when you the home you are interested in has major problems.
Therefore, it is best to contact tradesmen directly, like electricians, plumbers, roofers, and carpenters to get a fair assessment of possible home repairs. Most of them will do an inspection in their specific area for a small fee.
Use at least 2 of each kind, so you can get a consensus as to what is wrong. You can then budget for the down payment and escrow cost to purchase your next home.
Therefore, it is best to contact tradesmen directly, like electricians, plumbers, roofers, and carpenters to get a fair assessment of possible home repairs.
There is a Right Way and a Wrong Way to Buy Cars, Homes, and Education -Lois
Most of them will do an inspection in their specific area for a small fee. Use at least 2 of each kind, so you can get a consensus as to what is wrong. You can then budget for the down payment and escrow cost to purchase your next home.
Make sure you know exactly what your payment will be in regards to your loan. What will your payment be with Principle+Interest+Insurance+Taxes? You can also do mockups of an imaginary home to calculate what you should pay.
Ask friends or family what they pay for insurance and taxes for a home you are interested in. Taxes vary from state to state, you can also search your state websites. In some states, taxes go up as home values increase, but in others, the taxes stay the same.
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BUDGET FOR VACATION
Don’t put your vacation on a credit card when you can save a little all year and pay cash for your vacation. It is as simple as that. Budget in transportation, food, lodging, tours, and shopping.
If you want to go on the cheap, vacation where you have family members or friends who live in or nearby vacation spot. Pay your family member to stay with them, or cover their restaurant costs and meals. Do the math, and see what works out.
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BUDGET FOR COLLEGE
Some people are obsessed with the “best college syndrome” due to the college propaganda machine.
If you have unlimited money, you can go where you want. But, if you must depend on financial aid, which usually includes substantial student loans, that is not an option. If there is one thing you want to keep as low as possible, is student loans.
Since there is 1. never a guarantee you will get a job in your field or keep it, 2. There is not a guarantee you will get a job that pays in accordance with your student loan 3. you can’t file bankruptcy on student loans.
Because of these items 1-3, you should keep student loans as low as humanly possible. That means avoiding high priced schools and high-priced areas to live in for college. The least expensive schools are community colleges, and state colleges and universities.
There are some colleges that are priced like state colleges and universities, but you must do your homework and compare all cost. Private colleges and universities are unreasonably high cost and they have a lot of hidden costs, which makes the total difficult to calculate.
The for-profit schools offer quick learning and high prices. Today, some of them are now calling themselves non-profit due to the unpopularity of the for-profit model.
Private colleges and universities are unreasonably high cost and they have a lot of hidden costs, which makes the total difficult to calculate. The for-profit schools offer quick learning and high prices. Today, some of them are now calling themselves non-profit due to the unpopularity of the for-profit model.
The for-profit schools do massive advertising on television and the internet, this is your main clue. All colleges and universities have their cost listed on their websites. Make sure you find these costs and know exactly what you are getting into before you consider any college.
Your total student loan balance should not surpass your first years’ salary. Example: If you plan to be a teacher and your first year’s income is $25,000, your student loan should be capped at $20,000. Understand the details of student loans with the eBook on student loans.
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BUDGET TO PAY OFF STUDENT LOANS
There ae people all over Pinterest bragging that they paid off $60,000 of student loans in 5 years. This is possible due to re-amortization. When a loan is amortized to 20 years by your loan servicer, you can amortize it to 10 years by paying extra to principle every month.
If you have a 10-year loan, you can knock it down to 5 years. You can live tight, give up the finer things in life, and knock down those years with extra payment to principle.
You have to check your statements to make sure the extra payment is added to principle and you have to state that on your check, they will always try to put the extra to interest, even though it makes no sense. Big Thing Budgeting is essential when it comes to student loans, if not done correctly, these loans can follow you to your grave.
You have to check your statements to make sure the extra payment is added to principle and you have to state that on your check, they will always try to put the extra to interest, even though it makes no sense. Big Thing Budgeting is essential when it comes to student loans, if not done correctly, these loans can follow you to your grave. Learn more on my instagram.
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PREDATORY LENDING
Understand the way predatory lending works such as car title loans and payday loans. Why are many cars confiscated with a car title loan? Why do payday loan balances go from $500 To $3500?
I would have to write another article for an explanation, but a car title loan can easily double or triple if the money isn’t paid on the date due repeatedly, and a payday loan gets a rollover when the employee does not have the money to repay the loan on time.
Both problems push the balance way up over the top. The most effective way to pay off these loans is to stay away from predatory loans. Using predatory lending is probably the direct opposite of using Big Thing Budgeting, don’t get caught in the predatory lending trap. Predatory lending also includes car title loans, unsubsidized student loans and high interest car loans.
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Lois Center-Shabazz | Course Delta Agency
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How a Budget Can Create Financial Freedom in 5 Ways
Financial Freedom
Know Where Your Finances Are First
Since the most important aspect of financial freedom is no or low debt, I will start with debt.
There are those who are in horrific debt and they don’t know it, as high debt is a major robber baron of financial freedom – it is important to understand it’s implications. The main reason is because they don’t know what high debt is.
They have somehow gotten the wrong message about money and debt. They feel the more debt they have, the more money they have. Well, I am here to tell you that the more debt you have, is simply the more debt you have.
If you don’t have enough money to pay your debts every month, that is a sign that you have too much debt for your income. If you are making your debt payments, but it is difficult to pay your debts, you still have too much debt, and need to find ways of getting your debt down.
Low debt is one of the five major factors credit reporting agencies use to determine a high credit score. A high credit score is important because it saves you money when you get loans. The better your credit score, the lower the interest will be on your loans, in some cases, you may not get a loan at all, if your credit score is too low. One way to start down the road to financial freedom is creating a scripted budget.
Write 5 Steps to Getting What You Need to Start a Scripted Budget
Write down the most important things you need immediately. Then, write down the things you need long term. Examples of immediate things you need may be 1. pay off student loans in 3-5 years, 2. purchasing an affordable car after paying off student loans, 3. saving for an affordable vacation after doing number 1 and 2.
Then you will concentrate on long term goals, like finding a higher paying job after you get experience or getting an apartment or home in a better neighborhood.
Write 5 Steps to Getting What You Want in a Different Scripted Budget
Write down what you want short term, but is not necessary. Then ask yourself if you really want it and what feeling you will have if you get it. Then write down a budget and stick to that budget for everything you want.
It is imperative to create and stick to a budget with your wants, since wants sometimes to become emotional and emotions create an easy window to overspend. Example of wants are 1. a new dress for you cousins wedding, 2. going out of town for the weekend by plane to a friend’s graduation etc.
Use the Top Three Steps from Your Budget Scripts to Meet Your Goals
Of the five steps, you write down for both needs and wants, focus on the top 3 on each list. Focus on those top steps with laser precision. Narrowing your focus to the top three and the top 1 on your list will make it easy to make your goals in your time frame.
It will also make it easier to do. Many times, people give up because they feel the task is too hard, this comes when the task feels too overwhelming, the focus will relieve you of the overwhelm feeling.
Every Month Analyze Your Steps and Decide What You Need to Change in Your Budget
Somethings you do will work well, some won’t work at all, and as you use your current list you will also find better ways of meeting your goals. Because of this, you will change your steps by rearranging them or rewriting them.
Look at this article as one of many lessons in financial freedom, the more conscious you are about your budget, the more likely you will achieve financial freedom in the future. If you feel you have financial freedom now and you don’t live within scripted steps, as recommended, it would be wise to start so you can remain financially free.
Media propaganda to buy products we don’t need confuses people into thinking they need them, they buy them, then they get deeply in debt. Don’t allow yourself to be defined by product propaganda, but instead use conscious scripts to achieve low debt.
Use these eBooks to get started right on the road to financial freedom.
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Lois Center-Shabazz | Course Delta Agency
Author, Blogger, Course Creator, Investor, and Money Strategist
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Your 7-Year-Old Child’s Budget
If a 7-year-old has a great child’s budget, will that make him a frugal adult? It may, and it may not. But, we do have lots of evidence to suggest that spoiled children often become over spending and greedy adults. What happens at 7 could easily happen at 70, since good and bad habits grow over time, so why not start growing good habits with a child’s budget early.
Psychologist say the earlier you teach someone a skill the better chance they will perfect it overtime. That is seen in teaching skills such as music, sports and education. In my humble opinion, that also works with budgeting skills.
Some folks can’t figure out why their kids constantly beg for everything in sight, then they look back at the fact that they did not set proper limits on spending early. They felt that a happy child was a child that had everything they wanted, until of course, the child hit their teens and then twenties, and their begging for “things” and spending money developed into out of control behavior.
Here are 3 things you can do to put your 7-year-old on the right path for life.
- Give him an allowance, a piggy bank and chores to begin his child’s budget
Some parents think children should not be paid for the chores they do around the house. I am of the camp that feels there is nothing wrong with giving a child an allowance for working around the house if it is in line with age and chores.
The child does their chores on a schedule, they are paid on a schedule and they are encouraged to save a portion of their allowance and budget the remainder. It teaches them early that we all must work for money, and money has a limit.
- Discuss value, which is the pinnacle of a child’s budget
Some products appear cheap, but they will not last after the first usage or wash. So, teach them there is a difference between expensive, cheap and value for a product. You can purchase a product that appears cheap, but has very low value because it is made with low quality materials or craftsmanship, and quickly falls apart and becomes useless.
An example is buying a computer that is very inexpensive but it only last for 3 years, versus paying slightly more, say 30% more for a computer that last for 12 years — the savings is obvious. On the other hand, you can purchase an extremely expensive car, the upkeep is extremely expensive, and the breakdowns are frequent. That car may look good and go fast, but has little value for practical use and longevity. The maintenance cost out way the looks and performance.
- Teach your child about budgeting, savings and costs to round out your child’s budget
The earlier a child understands what a budget is, how to budget out the total sum of the money they receive, and how cost effects their savings, the better they will be in the future.
Sit down and decide with your child what is important for them, you can look at the internet or newspapers and find the prices of items they are interested in. Inform them that prices change from time to time, but this will give them an idea of what they must save. Allow them to set short term savings goals – a sports item like a basketball or doll, and a long-term savings goal like a more expensive game.
When you buy their more expensive items like bicycles, ATF’s, computers, and clothes, use this time to also discuss value, longevity, and cost.
Using steps 1,2, and 3 will allow your child to start early to process a functional child’s budget, so they can take budgeting into their adult life as an expert.
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Lois Center-Shabazz | Course Delta Agency
Personal Finance: Author, Blogger, Course Creator, Money Strategist
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Personal Finances Should be Personal
Your Personal Finances
I was speaking at a women’s meeting about personal finances and a young woman, about 35 came up to me and ask me what are “personal finances”. I was really shocked since being there meant that she was in some way affiliated with a business she owned.
She looked me in the eye with a very serious face. I pointed to her and said “your – personal – finances”. Your finances that you take very personal. You monitor, you manage, and constantly improve your finances yourself, even if you have help. It’s crucial that you understand your own finances.
It seems like it would be common sense to understand the term personal finance. But, the definition seems to elude some of the most intelligent, and highly successful people. The proof is in the finances of many.
The workplace embezzlements of high-level employees, the bankruptcies of high-income people, the general personal finance mismanagement of people which becomes evident when they lose a job and lose all or most of their assets due to mismanagement.
I CAN SUM IT UP IN 3 WAYS:
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RANDOM SPENDING
Take your finances serious – don’t randomly spend money. This is the most important aspect of personal finances. Some folks act as though the money they have in their checking account belongs to someone else, so they spend it until it is gone or before all bills are paid.
Then they go to the credit cards, when those run out, they go to others to borrow money and make up the difference. Then they lose relationships, which is can be more serious than wasting their money.
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TRACKING YOUR SPENDING
Keeping track of your spending is getting very personal with your finances. Most people don’t understand how fast money goes when it is spent randomly. You can see this also when you charge on credit cards the balance escalates rapidly.
A major aspect of getting personal finance maintenance is paying cash as much as possible unless you use a credit card for points and you have the money and discipline to pay off the balance once a month. With frequent credit card use, many tend to lose track of spending, and their finances become very impersonal.
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BUDGETING YOUR MONEY
I talk to people all the time who tell me they thought they were budgeting until they read many of my budgeting articles and the advice I give on budgeting. My program includes guerrilla budgeting.
With all the distractions, we have – advertising – expensive products – overpriced cars and high maintenance homes- getting personal with your finances means that you must create a guerrilla budget to survive no matter what your income.
Some folks think all they must do is make more money until they find out they spend more for things and get more expenses, so they are either in the same place or worse financially, as income goes up. They realize the problem is they did not get personal with their finances.
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Lois Center-Shabazz | Course Delta Agency
Interested in a Free Discussion about how I can help you with Fantastic Finances? Let’s Chat – Make an Appointment Here
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Fantastic Finances Poll For a Personal Finance Bounce
Help Us Create a Great Fantastic Finances Course for You.
We’re VERY close to finishing our long-awaited Fantastic Finances Course For a Personal Finance Bounce.
I have been working on this online course for more than four years, but I am finally going to wrap it up. I will be releasing it in September. This very short fantastic finances poll will help us help you get the right course.
This course will be entirely focused on “Support and Positive Financial Change”. It will include eight weeks of printed pdf’s, 8 complete personal finance books by Lois Center-Shabazz — in the form of downloadable eBooks, video tutorials on 8 crucial personal finance topics, a guide to create your Most Valuable Finances (MVF) profile, a complete course outline to guide you through the Most Valuable Finances Course, a Facebook support group, and a weekly live question and answer session with Money Pro and course founder, Lois Center-Shabazz.
It is going to be a complete brain dump of everything we know about “Support and Positive Financial Change”.
We are going to cover all the ways that we use to generate our support and positive change zones, and we are going to show you exactly how we change those zones to increase your net worth and financial IQ for life.
HOWEVER, we need your help. Before we finalize everything and send it off to the web course portal, we need to make sure we have covered everything. So please help us create the right online course with this Fantastic Finances Poll For a Personal Finance Bounce
This is where YOU come in. Please take a few minutes to answer this super-short survey — there is only one thing we want to ask you.
YOUR POLL QUESTION: What are YOUR top two questions about Support and Positive Financial Change that we absolutely NEED to answer in our Fantastic Finances Training Course? —->
PLEASE PLACE YOUR ANSWER IN THE COMMENTS BOX BELOW<—-
CHOOSE FROM:
Super Sane Savings
Guerilla Budgeting That Banks
Big Thing Buying: Cars, Homes, Education
Investment Insights: Know How to Grow Your Money The Right Way
Protecting Your Money After You Get it.
or All The Above
