by BlondieWrites on December 1, 2009
Were you recently laid off from work? If so, you may be in financial distress. Even those who collect unemployment benefits barely find themselves scraping by. If you are one of those individuals, you need to make significant cutbacks. What might those cutbacks entail?
Sell your house. If you live in a home with an expensive mortgage that you cannot afford and if you do not anticipate finding a job in the next two or three months, get out now. Try to sell your home before your credit is severely impacted. Luckily, the housing market is starting to slowly improve in many areas of the country. Layoffs are increasing in frequency, but many Americans still have their jobs and can get a loan. List your home for sale based on its last appraised value or fair market value. Don’t sell yourself short, but middle class family homes, in the $75,000 to $150,000 range are easier to sell.
If you have been trying to sell your home and cannot, do you have extra room? If so, rent out a room. Do backgrounds check and check references. This can help offset the cost of a mortgage you cannot afford. In addition, right now many Americans have steady income, but poor credit. These Americans cannot get a home loan, even though they could likely afford one. For that reason, consider renting your home. This is ideal if your house is too big, but do not feel comfortable living with a stranger. Use the incoming rent to pay the mortgage. Use your spouse’s income or your unemployment check to pay rent on a much smaller and cheaper apartment.
Find a new apartment. If you are renter, as opposed to a homeowner, is your rent too expensive? Can you no longer afford it or will you barley be scraping by? If so, look for a new place to live. If you have children, you may want to keep them in their same schools. This is good, but live where you can afford. A city may have an average rent of $1,000. However, fifteen minutes away a smaller town may have an average rent of $500 a month. Due to the poor economy, many landlords are releasing tenants from their contracts with appropriate notice, such as 30 or 60 days.
Sell your car and buy a cheaper one. Your best avenue is to sell the car outright yourself. List it for sale in newspaper classified sections, Craigslist.org, and other places online. Consider the value of your car. Set a fair selling price, but make sure you have enough to payoff the rest of your automobile loan and buy a cheaper, used car. Driving around a used “old clunker,” may not be what you had in mind, but you can find quality used cars for $1,000 to $5,000. Right now, you need something that runs and gets you from point a to point b. As for just selling you car, this isn’t recommended. Even if there is public transportation in your area, remember the poor job market. When find a new job, it may be two or three town away.
Look at the cost of your landline and cell phone. Do you have both? Many see success with replacing their landline phones with cell phones. If you can’t, practice talking on your cell phone less and lower the minutes. If you can get out of your cell phone contract without large fees, do it. Get a prepaid phone and use it for emergencies only.
Lower the cost of your internet. Many times, internet access is considered an extra. Yes, it technically is. However, it is now a job search tool for you. If actively looking for a new job, you need internet access. Don’t cancel yours. Instead, look for cheaper lower speed packages or opt for dial up access instead.
Lower the cost of your television. If you have internet access, consider doing away with your television altogether. You can get your local news and weather online. If you want television, get the local channels only. You don’t need one hundred or more channels, many of which you never watch. Luckily, most shows are now streamed online for free. In addition, the season DVD will soon be released on Netflix. Speaking of Netflix, if you do away with television, consider a subscription. For less than $20 a month, you can get unlimited movies with three movies at a time!
The above mentioned lifestyle changes may sound significant and impossible to make, but remember your financial situation. You were laid off from work. It may be one month before you find a new job, but it may be one year or more. Don’t fall victim to debt, take charge now.
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by BlondieWrites on November 12, 2009
If you have concerns you may be laid off, there are certain steps you can take now to alleviate the pressure and stress should this eventuality occur.
1. Put away enough money to cover expenses for the next 18 months.
2. Pay down credit card debt.
3. Re-visit your household budget and make necessary adjustments to save money.
4. Continue and/or increase contributions to your 401K Plan.
5. If you own a home outright, look into an equity loan. However, note that home equity have decreased as much as 20%.
6. Obtain your credit reports and check them thoroughly.
7. Check your insurance coverage for health, life, and auto to ensure you have the appropriate coverage. Make certain all policies are up to date.
8. Contact credit card companies and request a reduction in interest rates.
9. Call either your cable or telephone provider and ask what the price is for cable, telephone, and internet usage.
10. If you have both a landline and a cell phone, consider dropping the landline.
11. If you have internet service, check into utilizing Vonage, VoIP, or Skype as alternatives.
12. Research online coupon sites and bookmark them for later use. There are coupon sites available for groceries, household, and non-household items that offer discounts, printable coupons, and rebates.
13. Do not renew magazine subscriptions or subscribe to new ones.
14. Buy groceries in bulk.
15. If you buy clothes, choose those that do not require dry cleaning.
16. Winterize your home.
17. Conserve energy by lowering the thermostat and unplugging appliances when not in use. Shut down the computer instead of keeping it in sleep mode. Purchase energy-efficient light bulbs and ceiling fans that utilize less wattage. Clean air conditioner filters frequently, and keep blinds open during daylight hours to heat your home instead of raising the thermostat.
18. Select one day to shop and complete all errands, thus saving on gas.
19. Use public transportation whenever possible.
20. Refrain from buying coffee, snacks, lunch, lottery tickets, scratches, and any other non-essential items that you purchase on a daily basis.
Now is the time to save money and not spend it in a wasteful and impulsive manner. We will all have to make difficult choices and sacrifices during this recession. Prepare for the worst and hope for the best.
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by BlondieWrites on September 23, 2009
Earning extra money for your future, that is definitely not a bad thing!
However, is it an easy thing? One definitely wants that for a stronger foundations for the future, but how can you manage?
Saving Money
One of the better ways to have a more secured future is to have more than enough money in your bank account, to be more liquid.
Time is Gold
Sometime in a day, you may find yourself with nothing to do. You can either take this time to rest, to sleep, to read a book or any of your favorite pastimes. Basically anything will do just to keep you sane and as long you do not have to spend too much money.
However, instead of looking for activities that will not be too costly to maintain, it is better to pursue things that can even help you earn money. If you have enough free time, consider taking a part-time job. More than saving money, you can even expect more dough into your savings!
Why Should I Get a Part-time Job?
** It can be a source for your extra money for your savings.
** You make good use of your free time.
** For a student, the experience can teach a lot about life and the real world.
** You can meet interesting people.
** There is the possibility of discovering new skills or passions.
** Getting a good part-time job can actually be a start to a more serious endeavor.
Getting a Part-time Job
It will be relatively easy to get a part-time job. You can look up the posters or newspapers. Inquire in different establishments for openings in part-time positions. Ask friends who may recommend you. You can even provide services of your own skills like tutorial, writing or painting.
The job may require from you a few hours of your week. It can be something you do in the afternoons, during the weekends, or during school breaks.
You may feel challenged by exploring this new possibility in your life. You will have to balance your part-time job with what you regularly do. Simply manage your work and time properly. Save time too. Do minor tasks when traveling or waiting. Give no room for distraction, procrastination or cramming.
As long as you keep track of your extra earnings and savings, in the long run, your part-time job will definitely help do wonders to your plans in the future.
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