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get out of debt

Big Thing Budgeting in 7 Ways

How to Budget for the big things, use what I call Big Thing Budgeting.

  1. 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.
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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.

  1. 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.

Ladies, don't get cheated buying a car.

  1. 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.

Dream your best home - secrets to successful car buying tips for women

  1. 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.

  1. 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.

Don't stop thinking about your finances

  1. 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.

  1. 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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Big thing budgeting in 7 ways, budgeting for a home and other things

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.

fantastic finances pollThis 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

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3 Types of Predatory Debt You Need to Know About

3 Types of Predatory Debt You Need to Know About

The types of debt you get matters, and many don’t understand that. Here are 3 types of predatory debt effecting millennial’s and gen x’ers debt snowball.  The 3 types of predatory loans is where the most confusion comes in, and later the pain and sorrow is packed on for years afterwards.

So, in case you wonder how debt snowballs, it starts when you don’t understand the predatory nature of some debt, that can last for decades.

There are many different types of predatory debt, but I am only discussing those that destroy lives without understanding them.Remove predatory debt, Ladies for peace of mind when you buy a car you must understand the rules.

PREDATORY LOANS CREATE PREDATORY DEBT

A predatory loan is usually difficult to understand, not well-explained, is high interest, and can snowball quickly and easily and cause predatory debt. Don’t get caught up in advertising propaganda that gets you snagged with bad debt appearing good. Do your homework, do your research and know the various loan products as well as how salespeople fudge the truth about loan products.

USED CAR LOANS, CAR TITLE LOANS, AND UNSUBSIDIZED LOANS

Used Car Loans – many have terms that have unbelievable interest rates. But many I have spoken to who were caught in this web, did not understand the high interest or bad terms in the loan.

Unfortunately, many states have laws that protect unscrupulous car dealers. And, some millenials and gen x’rs who buy cars from used car lots without the benefit of prior research get stunned when they get the loan paperwork.

If you have good credit, you can get a good loan from your bank, credit union, or the used side of a new car lot. Most new car lot financing offices are tied to local banks and credit unions. So, don’t get snagged with a bad loan because you don’t understand how different types of car lots operate. 

Payday Loans – many users are encouraged to roll over their loan weekly because they don’t have the money to pay the loan. After a year of doing this your interest can morph to over 300%. Car title loans have a similar problem, many lose their cars according to a PBS special which showed a sea of cars taken from the car owners.

In most of these cases, you will find that the loan was not nearly as useful as the misery that followed. Why would you risk a car worth $4000 to get a $500 loan and then find that you can’t repay it, so you get caught in the tangled web of rollovers until you loose your car.

It is not worth the risk. A better option is to borrow from close family, your credit union or a bank. An even better option is to find extra work to make the money you need. 

Debt, the wrong kind is crippling. Use good debt to buy a rental property

Unsubsidized Student Loans – I have had several college graduates contact me about this issue and none of them knew what their unsubsidized loan was until after they graduated.

Upon graduation they got the shock of their lives, with a loan balance far above what they borrowed and were confused. I explained to each one that they have an unsubsidized loan (as opposed to a subsidized loan, where interest is subsidized by the government while in school).

Women buy cars, learn the right way

With an unsubsidized loan  the interest is charged to the student, while in school. Most don’t understand or have money to pay the interest while in school, so it accumulates.

The unsubsidized loans I have seen have doubled in balance (or more), from the original loan balance when the interest is added to the balance after graduation. Now they have a huge balance of double or more from what they borrowed, immediately after graduation.

These are one of 3 types of predatory loans because it is almost impossible to file bankruptcy on them.

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This is one reason some students are skipping college to choose to work their way up on a job or go to a college they can pay from work and parents. Some student loans are taking 25 years to pay off, these are various types of unsubsidized loans or education that was simply way to costly for the degree.

The more you understand about the 3 types of predatory debt the easier it will be to avoid it, and the lifetime horrible consequences.

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Lois Center-Shabazz | Course Delta Agency
Personal Finance: Author, Blogger, Course Creator, Money Strategist

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Avoid Debt Snowball And Get Debt Free in 7 Ways

AVOID DEBT SNOWBALL BY UNDERSTANDING: DEBT RUNS ON AUTO PILOT, BUT SAVINGS MUST BE COMMANDEERED, IF YOU ARE GOING TO ACCUMULATE ASSETS.

avoid debt snowball
1. IF YOU DON’T NEED IT, DON’T BUY IT, HENCE NOW YOU CAN START TO AVOID DEBT SNOWBALL

How many clothing items do you have in your closet that you don’t wear?
How many books do you have on your shelf that you haven’t read?
How many utensils or dishes do you have that you haven’t used?
Go through your garage, can you find things you haven’t unwrapped?
How much furniture do you have that you haven’t sat on yet?

If you answered an affirmative to any of these questions, you don’t need to keep buying items in these categories. Also, it would help your budget to get rid of some of the things you don’t need. There are also things you have in your possession, but have not used for years, these are things that you can consider getting rid of to pay off bills.


2. COMPARISON SHOP FOR THE BARGAIN ONLINE, BEFORE YOU HIT THE STORES

Internet shopping has revolutionized the way we shop in the past few decades. If you have little time, and are in need of major items, using the internet can save time, gas, and money. You can comparison shop at several single sites for the same item. There are many internet shopping malls that serve the purpose of comparison shopping and afterwards, you can purchase from the same mall. You can also comparison shop with stores in your own area. Using the internet shops first can also tell you if an item is stocked in your local store, so you don’t waste time and gas traveling.


3. IF YOU KNOW YOU HAVE A SHOPPING ADDICTION, STAY OUT OF THE STORES

It takes a little bit of discipline to admit that you may be shopping for the thrill of it. This is when you know you have a shopping addiction, and are not in need of most of the things you buy. In this case your money would be better spent on therapy to curve your shopping addiction or doing other healthier and less expensive activities.

cash flow journal, know where your cash flows

Track Your Spending For 90 days With This Cash Flow Journal


4. CONCENTRATE ON PAYING OFF BILLS WITH INCOME OR SAVINGS TO AVOID DEBT SNOWBALL

It sounds a little silly to say you need to pay off bills with income or savings, but some have gotten so heavy into the debt trap that they confuse money with debt consolidation programs – which is just more debt. Stay away from getting loans to pay off loans, this will help to get your debt snowball under control. Learn more from my eBook, Live Rich Save Money! 68 Powerful Ways to Save Money, Now and Forever.


5. DON’T USE DEBT TO PAY OFF DEBT, THAT’S CALLED DEBT REPLACEMENT AND INCREASES DEBT SNOWBALL

I said it before, save up some money or budget money from income, no matter how small and use that to pay off your debt. Most of us have to have some debt, but it should be in line with your income at minimum. Much of the debt we carry is emotionally burdensome and unnecessary. You can get out of debt forever, if you understand this.

save money with my easy budget planner

Create Your Best Budget With Easy Budget Planner


6. HANDS OFF YOUR RETIREMENT ACCOUNT, IT’S FOR YOUR RETIREMENT

When retirement age rolls around some workers have to wait 2 years, some 5 and others 10 or more years to retire because they used the undisciplined approach of spending retirement dollars before retirement time. Not only did they spend the dollars, but they had to repay interest and penalties for early use of the money. This makes no sense at all, unless it is a matter of life and death (your own), you should not touch retirement money until retirement time. The general rule of thumb is that you can safely take out 5% a year to retire on, after retirement. Most accounts can generate at least that much in interest to consistently replenish the account.


7. BEFORE A PURCHASE AVOID DEBT SNOWBALL BY ASKING YOURSELF, “DO I NEED THIS, DO I WANT THIS, WILL I USE THIS, CAN I AFFORD THIS, AND WILL THIS LAST?

This is my famous saying. It came as a result of my own years – long battle of spending, borrowing, and saving money. I finally got the saving part to dominate all others. Then I adopted the above mantra before I buy anything. Once I learned that at some point you can buy so much that you start to duplicate things you already have. At this point, it is usually bought if I need it, I am going to replace something that are no longer useful, or I am going to give things away to those in need.
In summary, stop your debt snowball by under spending and over saving. When you need something you can pull money from your savings or income. Keeping debt low works to keep your mind, emotions and finances, in good shape Get your debt under
control with my “Easy Budget Planner”.

Contact me here if you have questions about getting out of debt or questions about Mega Money Management.

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