Let's face it the economy is in chaos. More and more companies close their businesses each and every day. The line at the local job fairs seems to be doubling by the moment. It is getting more and more difficult to get extended credit to buy large purchases or even get a credit card. Times are tough and it could end up getting even worse.
One of the best things that you can do during these tough times is to figure out how to save money and make it happen. When youíre financially strapped, figuring out how to save money can be frustrating and seemingly impossible. However, it should be your number one priority.
Being able to save money during these tough times can end up being your lifesaver. Believe it or not, figuring out how to save money might not be as difficult as it seems. The first thing that you need to do is make a chart or a spreadsheet and figure out where every single cent of yours is being spent. Do you buy a cup of coffee each morning? Keep track of that. Buy lunch at work a few times a week? Write that down. Do you find yourself walking out of the grocery store wondering how you spent so much money on so few items? Keep track of every single cent you spend for a few weeks. Before you figure out how to save money, you need to know how youíre spending your money and how much you're spending.
Realizing how to save money is a huge step in keeping yourself from drowning in today's economy. Once you take the time to itemize every single cent youíre spending, you can figure out how to change everything. Those expensive grocery store visits that you're having regularly, well, you can cut them down considerably. One of the most highly effective ways in learning how to save money is to utilize coupons and taking advantage of discounts.
Manufacturers will often place coupons in weekly newspapers or circulars. You can scour the internet for coupons. Buying generic brands instead of those famous name brands can cut your grocery bill in half.
Nowadays, people trying to figure out how to save money are finding that they can shop for items in their wardrobe or other household items or accessories at consignment or thrift shops. Sure, your new shirt isn't really new, but who will know? You can get a $50 sweater for $10 if you are a savvy shopper. Being cheap has never been more in style.
Figuring out how to save money can be incredibly stressful. Why not make it more fun? Take an old shoebox, or any box, and tape it shut. Cut out a slit in the top for a small opening. At the end of your day or your week, slide whatever leftover cash you have into it. Whether its one dollar or several, it is a way of saving money and not letting it be wasted. Before you know it, you may have enough cash to pay a few bills or some small emergency funds. The point of taping up the box is so that you arenít as easily tempted to take the money back out. Try it. You may find that being creative and finding way to be cheap may not be as hard as you imagine it will be, and could benefit you greatly in the long run.
Showing posts with label money. Show all posts
Showing posts with label money. Show all posts
Saturday, June 12, 2010
Wednesday, June 9, 2010
A 15 Year Fixed Mortgage Rate
A 15 Year Fixed Mortgage Rate Loan can Pay Off Your Home Faster.
If you make enough money and are willing to make a larger mortgage payment each month, then you might want to take a look at a 15 year fixed mortgage rate loan. 15 year fixed mortgage rates are always about a half point lower than 30 year fixed mortgage rates. For example, if 30 year fixed mortgage rates are at 5%, then you can expect 15 year fixed mortgage rate loans to be around 4.5%.
In the first ten years of any mortgage loan, you are paying almost all interest. For example, on a mortgage loan of $200,000 at a fixed rate of 5% on a 30 year term, your fully amortized (principal and interest payment) will be $1073. Of that $1073, $833 is the interest payment. That means that only $240 of that $1073 payment goes towards principal.
As the fully amortized loan progresses, more and more of the payment will go towards paying down the principal loan balance, but you can see that by paying so much interest for so many years, you end up paying quite a bit more. In the previous example, the total finance charge (interest paid) will actually total more than $219,000 over the 30 year period. So for a $200,000 loan you will actually end up paying $419,000.
The same $200,000 home loan at 4.5% interest rate (remember, half a point less) for a 15 year fixed mortgage rate term instead of 30 year term will mean a monthly payment of $1530. Of that $1530, only $750 will go towards interest while the remaining $780 will go directly towards principal. This means that over the course of the 15 year fixed mortgage rate loan term, you will only pay $93,000 in finance charges (interest). That is $116,000 less than the 30 year loan.
Do you think that you could spend $116,000 on something else instead of your home loan?
The other big positive effect of paying your mortgage quicker with a 15 year fixed mortgage rate loan is that you end up building valuable equity.
Equity is the difference between what you owe and what the home is worth. Assuming that the $200,000 property you purchased fifteen years ago is now worth $300,000, you will be able to accrue a total equity of $300,000 by paying off your loan quicker.
This all gets added to your net worth and will serve you well when you retire or if you decide to leverage your property at a later date.
If you make enough money and are willing to make a larger mortgage payment each month, then you might want to take a look at a 15 year fixed mortgage rate loan. 15 year fixed mortgage rates are always about a half point lower than 30 year fixed mortgage rates. For example, if 30 year fixed mortgage rates are at 5%, then you can expect 15 year fixed mortgage rate loans to be around 4.5%.
In the first ten years of any mortgage loan, you are paying almost all interest. For example, on a mortgage loan of $200,000 at a fixed rate of 5% on a 30 year term, your fully amortized (principal and interest payment) will be $1073. Of that $1073, $833 is the interest payment. That means that only $240 of that $1073 payment goes towards principal.
As the fully amortized loan progresses, more and more of the payment will go towards paying down the principal loan balance, but you can see that by paying so much interest for so many years, you end up paying quite a bit more. In the previous example, the total finance charge (interest paid) will actually total more than $219,000 over the 30 year period. So for a $200,000 loan you will actually end up paying $419,000.
The same $200,000 home loan at 4.5% interest rate (remember, half a point less) for a 15 year fixed mortgage rate term instead of 30 year term will mean a monthly payment of $1530. Of that $1530, only $750 will go towards interest while the remaining $780 will go directly towards principal. This means that over the course of the 15 year fixed mortgage rate loan term, you will only pay $93,000 in finance charges (interest). That is $116,000 less than the 30 year loan.
Do you think that you could spend $116,000 on something else instead of your home loan?
The other big positive effect of paying your mortgage quicker with a 15 year fixed mortgage rate loan is that you end up building valuable equity.
Equity is the difference between what you owe and what the home is worth. Assuming that the $200,000 property you purchased fifteen years ago is now worth $300,000, you will be able to accrue a total equity of $300,000 by paying off your loan quicker.
This all gets added to your net worth and will serve you well when you retire or if you decide to leverage your property at a later date.
Wednesday, June 2, 2010
How To Earn Extra Money
Nowadays, everyone is trying to figure out how to earn extra money. A lot of families have been cut down to one income, or worse no income. Those financial stresses encourage a lot of people to start to look around for ways to earn extra money. And let's face it you have to let go of some of your pride when the going gets tough. If you have to flips burgers for a while to make ends meet, then flip burgers you must.
However, when figuring out how to earn extra money, you may just need to be creative and look around. If you have an attic or basement full of boxes that have been untouched for years, you may be able to pull in some extra cash with a garage or yard sale. Heck, you may even find that some of your stored treasures could be worth a bit more if you do some research and look for something similar on ebay.
If youíre not familiar with ebay, however, make sure you read up on what fees are associated with selling and such. Make sure it is worth your time.
Do you own a vehicle? If so, how about taking a part-time job delivering newspapers or take-out food? Of course, you'll have to weigh the pros and cons of whether or not it is worthwhile with gas and insurance, but it could be one of the best ways you find in your quest of how to earn extra money endeavors.
Do you have a skill such as playing an instrument or having excellent mathematical abilities? Offer to teach lessons or tutor. You can advertise any services like that, for free, on craigslist. Any items that you want to sell and not have to bother to list on ebay, list them on craigslist. While ebay will hit an international audience, craigslist is only local, but could save you quite a bit of time, energy and fees.
If you're truly searching for how to earn extra money, take a look around you. There are always people who are willing to pay for things they don't like to do. People donít like to clean their houses offer to clean houses. There are always people who donít want to run their own errands. Offer to run errands for people.
Another popular way that people are saving money nowadays which can be to your advantage in how to earn extra money, is consignment shops. People are frequently shopping in thrift and consignment shops right now in order to be frugal. A lot of consignment shops will allow you to put your own items on consignment. Some will give you cash if and when they sell while others will give you a store credit. Either way, it helps you clean out your closets and gives you a good deal.
When trying to figure out how to earn extra money, the key will be as to how creative you are and how much pride you are willing to set aside. Getting a part-time job doing someone's dirty work can help you pay your own bills for a while.
Delivering food may not be your dream job but it will make ends meet. Selling your personal items might seem desperate but you may find that you not only get a few extra bucks but free up some room in your household as well. Take some time to evaluation your life and your needs and how much you need to earn extra money, and take the necessary steps in order to survive. These are tough times and you may find that a lot more people are in the same shoes as you.
However, when figuring out how to earn extra money, you may just need to be creative and look around. If you have an attic or basement full of boxes that have been untouched for years, you may be able to pull in some extra cash with a garage or yard sale. Heck, you may even find that some of your stored treasures could be worth a bit more if you do some research and look for something similar on ebay.
If youíre not familiar with ebay, however, make sure you read up on what fees are associated with selling and such. Make sure it is worth your time.
Do you own a vehicle? If so, how about taking a part-time job delivering newspapers or take-out food? Of course, you'll have to weigh the pros and cons of whether or not it is worthwhile with gas and insurance, but it could be one of the best ways you find in your quest of how to earn extra money endeavors.
Do you have a skill such as playing an instrument or having excellent mathematical abilities? Offer to teach lessons or tutor. You can advertise any services like that, for free, on craigslist. Any items that you want to sell and not have to bother to list on ebay, list them on craigslist. While ebay will hit an international audience, craigslist is only local, but could save you quite a bit of time, energy and fees.
If you're truly searching for how to earn extra money, take a look around you. There are always people who are willing to pay for things they don't like to do. People donít like to clean their houses offer to clean houses. There are always people who donít want to run their own errands. Offer to run errands for people.
Another popular way that people are saving money nowadays which can be to your advantage in how to earn extra money, is consignment shops. People are frequently shopping in thrift and consignment shops right now in order to be frugal. A lot of consignment shops will allow you to put your own items on consignment. Some will give you cash if and when they sell while others will give you a store credit. Either way, it helps you clean out your closets and gives you a good deal.
When trying to figure out how to earn extra money, the key will be as to how creative you are and how much pride you are willing to set aside. Getting a part-time job doing someone's dirty work can help you pay your own bills for a while.
Delivering food may not be your dream job but it will make ends meet. Selling your personal items might seem desperate but you may find that you not only get a few extra bucks but free up some room in your household as well. Take some time to evaluation your life and your needs and how much you need to earn extra money, and take the necessary steps in order to survive. These are tough times and you may find that a lot more people are in the same shoes as you.
Subscribe to:
Posts (Atom)