The No 1 mistake that most Forex traders make is to set themselves a set of trading rules and then fail to stick to them because they allow their emotions to come into play so that their heart, rather than their head, rules their trading. The No 2 mistake that most Forex traders make is to start doubling up on a losing trade and, once again, they make this mistake for exactly the same reason.
You cannot allow your emotions to take over when it comes to foreign exchange trading and yet, time after time, that's exactly what happens.
When you find yourself in a losing trade then, providing you've done your homework and entered this trade on the basis of the numbers, and not on a hunch, the simple fact of the matter is that the market has unexpectedly moved against you.
This is something that happens to traders every day and is nothing more than a fact of Forex trading. It occurs because, no matter how much we like to think that the market is predictable, it isn't. Yes it will generally follow a pattern and the sophisticated tools that we have at our disposal will pick this up and allow us to trade profitably more often than not. But the market has a mind of its own and it will frequently catch out even the most experienced of traders.
The problem however is that it is human nature when you find yourself in a losing trade to feel that this is only a temporary situation and that the market will turn back in your favor, turning this losing position into a winning trade. This happens because, otherwise, it would mean that you were wrong about this trade and most of us don't like to admit that we're wrong.
But human nature takes you one step further and often compels you to take action to reinforce your original decision and to demonstrate your confidence in that decision. So, what do you do? You start to double up on this losing trade to show your confidence in it and also, subconsciously, because when you're proved right your final profit will also be that much greater as the trade recovers from a low position. In other words, the little green demon of greed also creeps in at this point.
Now sometimes you'll be lucky and the market will indeed turn around and give you a nice profit. However, this is simply compounding the error you've made in doubling up on a losing trade by encouraging you do the same thing next time you're in this position. Invariably of course your luck doesn't hold and the next time you'll lose heavily.
So how do you avoid this mistake?
You made the mistake simply because you found yourself in a position in which your judgment about a trade was being challenged and you were facing the uncomfortable position of having to admit that you were wrong. The real problem though is that you weren't wrong at all and that there was no need to take the action which you did in the first place.
Based on the numbers you were given, your judgment was quite right and there was no reason at all why you should not have entered this trade just as you did. Unfortunately, the market then decided to take an unexpected turn which neither you nor 99% of the other Forex traders could reasonably have been expected to predict. You didn't make a mistake at all, but simply experienced the unpredictability which is an everyday part of foreign exchange trading.
The mistakes that we make as Forex traders are generally nothing more than a case of allowing emotion to creep into our trading decisions. The foreign exchange market is a technical market and you must approach it as such and trade accordingly if you are to succeed.
ForexOnlineTradingSystem.info is the ideal place to learn Forex trading and provides information on a wide range of topics including currency exchange rates and the benefits of testing the water through mini Forex trading.
Wednesday, April 18, 2007
Sunday, March 04, 2007
Business Bankruptcy, Saving Your Company
Business bankruptcy is a situation in which a business organization has more liabilities than assets and is no longer capable of meeting its financial obligations. Any type of business can file for business bankruptcy.Business bankruptcy can provide relief to the business owners who are overwhelmed with credit problems and cannot find any other way out of debt. However, business owners must also face the fact of losing one’s business and damaging one’s credit standing and endure embarrassment is a possibility. There is not much stigma attached to Business Bankruptcy because it is, in fact, used by many businesses to restructure their companies.
Though Business Bankruptcy may seem different from personal bankruptcy, they both target the same goal: a way out when all possible solutions fail to alleviate the current situation. When a business or a company is on the verge of forfeiting payments on a debt, it is the sign for an owner or manager to know that the time has come to file for business bankruptcy.
Are there any differences between the different business bankruptcy types?
There are 2 main types of business bankruptcy: chapter 7 and chapter 13, but the latter has more advantages than the former because it is federal bankruptcy, and the law does not require the liquidation of the business itself. As an alternative, the company will have to fulfill paying the debt according to the agreement with the creditors. The company has the chance to recover from the debts and can make profits again. But any decision-making has to be pre- approved by the federal court as the business bankruptcy law stipulates.
Brandon O'Brien is the current manager of a company that filed for bankruptcy after following our professional advice and is currently following making his compulsory payments. Business bankruptcy has helped him regain the company’s financial control and has given him a new way of dealing with the debt problems the company has carried for many years and has not yet solved them.
Brandon O'Brien: What should I do after filing for Chapter 11 Business Bankruptcy?
James Banks: Chapter 11 Business Bankruptcy allows the company to keep its assets. Nevertheless it is recommended some bonds be liquidated in order to pay off part of the debt. The amount can be reduced, and the payment will not be too high; allowing the company to generate profit after all. Regardless of what method you use to reduce the debt, the manager of the company has to regularly report to the federal court any decision made in the company.
Brandon O'Brien: So, after filing for Business Bankruptcy, do the lawyers take care of everything?
James Banks: Do not believe that by filing for Business Bankruptcy your financial situation will be resolved. You, as the manager will have to make sure that the company has enough cash to endure the whole filing process, and we recommend that you follow a plan in order to avoid any type of delay during the case.
One way to take care of creditors once and for all is to put them all together and set up a plan to start the repayment process. The debt will be reduced, and the creditors will see you are in the process of paying them. This creates trust and understanding as to why you file for bankruptcy.
Remember, filing for Business Bankruptcy is a serious decision, and one that should only be considered when all other options have been tried. It would be wise to seek advice from a financial and legal professional before making any sudden decisions.
We have different articles of interesting topics and current and former clients’ experiences with our programs. Take a look at topics related to Business Bankruptcy, situations in which people can fall into and how to keep yourself a debt free person.
http://www.commercialdebtcounseling.com/avoidbankruptcy.shtml
http://www.commercialdebtcounseling.com/business/business-y/business-business-bankruptcy-filing-laws.shtml
--- James Banks is a contributing writer to http://www.commercialdebtcounseling.com/ and is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy. For Free Information on Business Bankruptcy and Debt Help Consultation, call toll-free 1-877-850-3328
Wednesday, February 14, 2007
Forex Trading Advice
Forex trading requires an ideal frame of mind, personality, and mental attitude. It also entails being able to remain composed, confident, focused and disciplined in the event of unfavorable trading outcomes.
One important advice when indulging in FOREX trading is to trade with a disciplined plan. The difficulty with many investors is that they take shopping more seriously than trading. The plan ought to comprise of stop and limit levels for the trade, as an investor's analysis should include the expected profits as well as the expected losses. Hence, it is very important for traders to have a plan in place before they start to trade.
Forex trading requires good execution and anticipation. Trading is a number game and success does not depend on the result of the next trade. It depends on the overall profitability of many trades. Hence, while trading, whether the last trade was profitable or not is definitely not important. It is advisable for investors to use their anticipation skills when they have made a practical number of trades and see the longer-term result of their action.
The simple concept of cutting losses early and letting profits run is one of the most difficult to put into practice and is the cause of most traders' heavy losses. Traders are advised not to go against their predetermined plan and take their profits before reaching their profit target. They are to simply allow profits to run and minimize their losses.
One very important Forex trading advice is not to over trade. An ordinary mistake that traders make is leveraging their account very high by trading much larger sizes than they are supposed to. A good thumb rule for investors is to never use more than 10% of their account at any given time.
The intention of trading with a plan is because most objective study is done before the trade is executed. There is a possibility that traders might analyze the market differently in the hopes that the market will move in a favorable direction, which may not always be the case. It is advisable for traders to modify this plan as and when necessary in view of the changing FOREX market conditions.
Forex Trading provides detailed information on Forex Trading, Online Forex Trading, Forex Trading Tips, Forex Trading Hours and more. Forex Trading is affiliated with Forex Day Trading Systems.
Article Source: http://EzineArticles.com/?expert=Eddie_Tobey
One important advice when indulging in FOREX trading is to trade with a disciplined plan. The difficulty with many investors is that they take shopping more seriously than trading. The plan ought to comprise of stop and limit levels for the trade, as an investor's analysis should include the expected profits as well as the expected losses. Hence, it is very important for traders to have a plan in place before they start to trade.
Forex trading requires good execution and anticipation. Trading is a number game and success does not depend on the result of the next trade. It depends on the overall profitability of many trades. Hence, while trading, whether the last trade was profitable or not is definitely not important. It is advisable for investors to use their anticipation skills when they have made a practical number of trades and see the longer-term result of their action.
The simple concept of cutting losses early and letting profits run is one of the most difficult to put into practice and is the cause of most traders' heavy losses. Traders are advised not to go against their predetermined plan and take their profits before reaching their profit target. They are to simply allow profits to run and minimize their losses.
One very important Forex trading advice is not to over trade. An ordinary mistake that traders make is leveraging their account very high by trading much larger sizes than they are supposed to. A good thumb rule for investors is to never use more than 10% of their account at any given time.
The intention of trading with a plan is because most objective study is done before the trade is executed. There is a possibility that traders might analyze the market differently in the hopes that the market will move in a favorable direction, which may not always be the case. It is advisable for traders to modify this plan as and when necessary in view of the changing FOREX market conditions.
Forex Trading provides detailed information on Forex Trading, Online Forex Trading, Forex Trading Tips, Forex Trading Hours and more. Forex Trading is affiliated with Forex Day Trading Systems.
Article Source: http://EzineArticles.com/?expert=Eddie_Tobey
Tuesday, February 13, 2007
High Risk Personal Loan and High Risk Loans
High risk personal loans are for people who have a troubled credit history, but need money to pay current debts or unexpected expenses. There can be advantages to taking out a high risk personal loan, including the various options they offer, depending on the borrower's financial situation. If you are interested in finding a loan to meet your financing needs, there are various places and types of lenders that may be willing to offer you a high risk personal loan.
When someone has bad credit, or no collateral that person is considered a risk for the lender. Therefore, the lender, while agreeing to finance a high risk personal loan for them, may offer the loan rates and terms at higher interest rates and with stricter terms than they would offer a loan to someone with better credit. People may have bad credit for a number of reasons. Most lenders will take into consideration the individual situation of the borrower, before offering the terms for any high risk personal loans.
High risk personal loans can offer some advantages to the person with bad credit. First, that person can us the high risk personal loan to redeem or better their credit by making their payments on time and paying the loan in full. If they handle their high risk personal loan obligations wisely, they will insure better loan rates in the future. After all, there are consequences to poor financial management. But, if one pays their dues now, they eventually can find a financially free future if that is their desire.
Another advantage to high risk personal loans is that they can be gotten quite easily. Even if someone does not own a home, they can qualify for an unsecured high risk personal loan. If they do own their home or have other sufficient collateral, they also may qualify for secured high risk personal loans or lines of credit to meet their financing needs. While lenders of high risk personal loans will cost more than other loans, they can help a person with questionable credit who is in need of cash quickly.
If you are interested in finding out whether you qualify for a high risk personal loan, you can find information from lenders at credit unions, banks and other financial institutions. There are even lenders online that will be willing to lend you high risk personal loans. However, before you sign on the dotted line, make sure you read the fine print for any loan. Remember, if it sounds too good to be true, it probably is.
For more information, visit:http://www.christianet.com/articles/http://www.christianet.com/
Article Source: http://EzineArticles.com/?expert=Christian_N
When someone has bad credit, or no collateral that person is considered a risk for the lender. Therefore, the lender, while agreeing to finance a high risk personal loan for them, may offer the loan rates and terms at higher interest rates and with stricter terms than they would offer a loan to someone with better credit. People may have bad credit for a number of reasons. Most lenders will take into consideration the individual situation of the borrower, before offering the terms for any high risk personal loans.
High risk personal loans can offer some advantages to the person with bad credit. First, that person can us the high risk personal loan to redeem or better their credit by making their payments on time and paying the loan in full. If they handle their high risk personal loan obligations wisely, they will insure better loan rates in the future. After all, there are consequences to poor financial management. But, if one pays their dues now, they eventually can find a financially free future if that is their desire.
Another advantage to high risk personal loans is that they can be gotten quite easily. Even if someone does not own a home, they can qualify for an unsecured high risk personal loan. If they do own their home or have other sufficient collateral, they also may qualify for secured high risk personal loans or lines of credit to meet their financing needs. While lenders of high risk personal loans will cost more than other loans, they can help a person with questionable credit who is in need of cash quickly.
If you are interested in finding out whether you qualify for a high risk personal loan, you can find information from lenders at credit unions, banks and other financial institutions. There are even lenders online that will be willing to lend you high risk personal loans. However, before you sign on the dotted line, make sure you read the fine print for any loan. Remember, if it sounds too good to be true, it probably is.
For more information, visit:http://www.christianet.com/articles/http://www.christianet.com/
Article Source: http://EzineArticles.com/?expert=Christian_N
Friday, February 09, 2007
Investment Secrets - The Investment That Made Donald Trump Billions
There is an investment secret that has made many of the world’s wealthiest investor’s huge capital gains.
It has out performed shares, mutual funds unit trusts and property, with lower volatility and has out performed many so called higher risk investments such as managed futures and currencies.
This simple investment secret for capital growth is open to all and only needs a minimum investment of around $10,000.
So, what is it? Read on …
It’s, investing in land
If you have never considered land, its time to start, it really is the investment secret that has made astute investors worldwide fortunes.
It’s now affordable for smaller investors and there are many specialist companies catering for inexperienced investors who can give all the advice and help you need to turn your investment into long term capital gains potential.
As Donald Trump said:
"I just love real estate. It's tangible, it's solid, and it's beautiful."
Howard Hughes was another who took advantage of this investment secret and made big gains, buying underdeveloped land in California, which is now worth billions.
You don’t have to be rich to invest in land either, anyone investing in mutual funds, unit trusts or shares should consider it as a portfolio diversification.
A recent newspaper article featured an investor who turned just a 1,000 investment into 3.5 million in just 11 years!
Now, you may not do as well as this investor but land represents a fantastic opportunity for those who know how to buy in the right location.
So where should you buy land?
The investment secret of investors worldwide is to buy land in the UK for capital growth.
Why?
Quite simply, it is one of the most densely populated countries in the world, has a rising population and a huge shortage of affordable housing.
This means land in the RIGHT location is in short supply.
Buying in the right location
To maximize this investment secret you need to buy in the right location.
Once the land is granted planning permission to build houses, investors will see a big capital gain on the land and can sell at a profit.
920% average gains!
The AVERAGE capital gain on UK land has been a staggering 920% over the last 20 years.
This is far in excess of shares unit trusts or mutual funds and many leveraged investments. Even better this investment has featured low volatility.
Keep in mind this is the AVERAGE and astute investors with good plot location have made far bigger gains.
Limited downside
The downside is limited as well. Even if a land investment does not appreciate much in value it’s unlikely to fall in value much either. As over the longer term land prices tend to rise in value anyway.
Mark Twain once said:
“Buy land their not making it any more”
That’s good advice! As you can see this investment secret is essentially easy to understand and is open to all investors.
Liquidity buy back options
If you need your money quickly, many land companies offer a solid buy back option for the land purchased, so you can cash in your investment at anytime.
Land therefore has a lot of advantages and when you add them all up they give everyone access to the investment secret the world’s wealthiest investors have known for years.
free report on land investing
Telling you all you need to know about investing, buying in the right location and buy back options, request your FREE copy today: http://www.net-planet.org/index.html
Article Source: http://EzineArticles.com/?expert=Sacha_Tarkovsky
It has out performed shares, mutual funds unit trusts and property, with lower volatility and has out performed many so called higher risk investments such as managed futures and currencies.
This simple investment secret for capital growth is open to all and only needs a minimum investment of around $10,000.
So, what is it? Read on …
It’s, investing in land
If you have never considered land, its time to start, it really is the investment secret that has made astute investors worldwide fortunes.
It’s now affordable for smaller investors and there are many specialist companies catering for inexperienced investors who can give all the advice and help you need to turn your investment into long term capital gains potential.
As Donald Trump said:
"I just love real estate. It's tangible, it's solid, and it's beautiful."
Howard Hughes was another who took advantage of this investment secret and made big gains, buying underdeveloped land in California, which is now worth billions.
You don’t have to be rich to invest in land either, anyone investing in mutual funds, unit trusts or shares should consider it as a portfolio diversification.
A recent newspaper article featured an investor who turned just a 1,000 investment into 3.5 million in just 11 years!
Now, you may not do as well as this investor but land represents a fantastic opportunity for those who know how to buy in the right location.
So where should you buy land?
The investment secret of investors worldwide is to buy land in the UK for capital growth.
Why?
Quite simply, it is one of the most densely populated countries in the world, has a rising population and a huge shortage of affordable housing.
This means land in the RIGHT location is in short supply.
Buying in the right location
To maximize this investment secret you need to buy in the right location.
Once the land is granted planning permission to build houses, investors will see a big capital gain on the land and can sell at a profit.
920% average gains!
The AVERAGE capital gain on UK land has been a staggering 920% over the last 20 years.
This is far in excess of shares unit trusts or mutual funds and many leveraged investments. Even better this investment has featured low volatility.
Keep in mind this is the AVERAGE and astute investors with good plot location have made far bigger gains.
Limited downside
The downside is limited as well. Even if a land investment does not appreciate much in value it’s unlikely to fall in value much either. As over the longer term land prices tend to rise in value anyway.
Mark Twain once said:
“Buy land their not making it any more”
That’s good advice! As you can see this investment secret is essentially easy to understand and is open to all investors.
Liquidity buy back options
If you need your money quickly, many land companies offer a solid buy back option for the land purchased, so you can cash in your investment at anytime.
Land therefore has a lot of advantages and when you add them all up they give everyone access to the investment secret the world’s wealthiest investors have known for years.
free report on land investing
Telling you all you need to know about investing, buying in the right location and buy back options, request your FREE copy today: http://www.net-planet.org/index.html
Article Source: http://EzineArticles.com/?expert=Sacha_Tarkovsky
Thursday, February 08, 2007
Lowest Mortgage Rates In New York
Purchasing a new home is a very important decision in a person's life. It is very important to find the right finance and the lowest mortgage rates. Mortgage financing is a very competitive industry with a lot of finance companies in the fray.
The mortgage rates are at an all time low in New York but there are a variety of loan programs that a customer can take advantage of. The customers need to educate themselves about the various loans on offer and study the market. It is also advisable to consult a financial expert to assess the various options available in the market and offer genuine advice.
There are many types of mortgage loans, so it is important for customers to know the amount of money that they can afford to pay back every month. The amount of money that can be offered, as a mortgage, would depend on the set criteria. In case the loan is for a shorter duration, for a fifteen or thirty-year period, then the customer can save a lot of money over the entire course of the loan, even though the monthly payments will rise after a certain period of time. An adjustable rate mortgage can start the customer with a lower interest rate, where the payments increase with rate changes.
If a customer can make a large down payment, then it is possible to get the best competitive rates offered. Lenders are willing to lower the interest rates if the customer can make a large down payment, upfront. In such cases, the monthly payment lowers. It is advisable to take into consideration any upcoming costs, before deciding on the down payment.
It is advisable for a customer to assess the financial situation before looking for a home. He should take the help of experts and choose a mortgage rate that suits his budget.
Lowest Mortgage Rates provides detailed information on Compare Low Mortgage Rates, Lowest Commercial Mortgage Rates, Lowest First Mortgage Rates, Lowest Fixed Mortgage Rates and more. Lowest Mortgage Rates is affiliated with Home Mortgage Rates.
Article Source: http://EzineArticles.com/?expert=Jimmy_Sturo
The mortgage rates are at an all time low in New York but there are a variety of loan programs that a customer can take advantage of. The customers need to educate themselves about the various loans on offer and study the market. It is also advisable to consult a financial expert to assess the various options available in the market and offer genuine advice.
There are many types of mortgage loans, so it is important for customers to know the amount of money that they can afford to pay back every month. The amount of money that can be offered, as a mortgage, would depend on the set criteria. In case the loan is for a shorter duration, for a fifteen or thirty-year period, then the customer can save a lot of money over the entire course of the loan, even though the monthly payments will rise after a certain period of time. An adjustable rate mortgage can start the customer with a lower interest rate, where the payments increase with rate changes.
If a customer can make a large down payment, then it is possible to get the best competitive rates offered. Lenders are willing to lower the interest rates if the customer can make a large down payment, upfront. In such cases, the monthly payment lowers. It is advisable to take into consideration any upcoming costs, before deciding on the down payment.
It is advisable for a customer to assess the financial situation before looking for a home. He should take the help of experts and choose a mortgage rate that suits his budget.
Lowest Mortgage Rates provides detailed information on Compare Low Mortgage Rates, Lowest Commercial Mortgage Rates, Lowest First Mortgage Rates, Lowest Fixed Mortgage Rates and more. Lowest Mortgage Rates is affiliated with Home Mortgage Rates.
Article Source: http://EzineArticles.com/?expert=Jimmy_Sturo
Wednesday, January 03, 2007
Budgeting For Your Personal Finance
Most of us find ourselves having to part with our hard-earned cash almost on a daily basis to just keep ourselves going. Have you ever thought about exactly what youre spending though? A great deal of people never bother to budget yet they could find themselves a lot better off by keeping an eye on their income and outgoings. If your finances are starting to get the better of you and you want to know how to manage your money more effectively, read on.
Work out your income and outgoings
First, decide whether youll do a monthly or weekly budget, whichever suits you best. Then write down all your income. (e.g. salary, benefits, pension). Now list your outgoings. Dont forget those that you only pay on an annual or quarterly basis which youll need to break down to a weekly or monthly amount. Here are some common household expenditures:
mortgage or rent
home insurance
council tax
utilities (gas, electricity, water, phone)
TV licence
car tax
car insurance
petrol
car parking charges
travel to work (public transport)
credit cards
overdrafts
loan repayments
groceries
childcare
pocket money for kids
vet bills
luxuries (going out, clothes, presents)
holidays
Tally up your total outgoings and subtract them from your income, and whats left over is yours to spend or save if youre wise. If your outgoings are more than your income, alarm bells should be ringing. You wont be able to sustain this on a long-term basis and youll quickly find yourself in more and more debt. Nows the time to sort it out. You know where you stand with your income and outgoings, so you can now make changes and improvements to the way you manage your money. Below are some tips to help you cut down your spending and increase your savings.
Save, not spend
There are lots of ways in which you can live more efficiently, and a little goes a long way if you save just 1 a day, youll have 365 in a year! So everything counts:
Cook at home rather than buying ready meals and takeaways or eating out.
Cut down on your treats CDs, clothing, make-up etc. The best way in which to do this is to give yourself a budget and stick to it.
Dont buy designer labels or expensive brands cut down by purchasing high street clothes or the supermarkets own brand of groceries.
Just make your own lunch, or dont buy coffee at work, and youll easily save it.
Give up smoking its an expensive habit.
Switch off unneeded lights in your house.
Find out whether youre entitled to any benefits. The government has various tax credits and allowances for individuals and families on low incomes.
Open a savings account if you dont have one and set up a standing order to ensure that some of your income goes there every week or month.
Tax-free savings accounts such as ISAs (Individual Savings Accounts) allow you to save a certain amount each year without paying tax.
Leave your savings alone once theyre in your savings account, theyre untouchable. The more you have, the more youll make in interest.
Check regularly how your savings are performing and move to a bank account with a better interest rate if necessary.
If you get a bonus or extra cash, put it in your savings before youre tempted to spend it.
Dont buy anything on credit unless you really have to and only then if you know you will have the means to pay it back. Its a much more expensive way to shop, as youll pay back more in interest.
Most people start to have problems with debt when theres a major change in their life circumstances, such as getting married, changing job, moving house or starting a family. If any of your circumstances change, revise your budget and make any necessary adjustments.
If youre still struggling
dont sweep the issue under the carpet. The longer you ignore your money problems, the bigger your debts will get. We live in an expensive world nowadays and many people struggle to get by so theres nothing to be ashamed of. There are lots of organisations who can provide specialist help on debt management for example the government Insolvency Service, Consumer Credit Counselling Service and the Citizens Advice Bureau. Theyll give you free practical advice to help you get your finances back on track.
The first thing to do is to make a list of everyone to whom you own money, and sort the list into priority and non-priority debts. Priority debts are those that are secured against your home or could have serious consequences such as you being evicted or taken to court, and these must be tackled first.
Then speak to your creditors, for your priority debts first. Theyll be a lot more understanding if you explain your situation to them than they would if you tried to ignore their payment demands. Run through your budget and try to negotiate a repayment plan thats manageable for you.
Once youve managed to repay all your debts, dont let yourself get caught in the same vicious circle again. Live within your means, dont be tempted by credit or buy now, pay later, and keep a close eye on your budget and expenditure.
Benedict Rohan Website: http://www.mortgagenation.co.uk
Benedict Rohan works as a freelance finance writer. Commercial Mortgage, Homeowner Loans, Remortgages
Article Source: Article Hub
Work out your income and outgoings
First, decide whether youll do a monthly or weekly budget, whichever suits you best. Then write down all your income. (e.g. salary, benefits, pension). Now list your outgoings. Dont forget those that you only pay on an annual or quarterly basis which youll need to break down to a weekly or monthly amount. Here are some common household expenditures:
mortgage or rent
home insurance
council tax
utilities (gas, electricity, water, phone)
TV licence
car tax
car insurance
petrol
car parking charges
travel to work (public transport)
credit cards
overdrafts
loan repayments
groceries
childcare
pocket money for kids
vet bills
luxuries (going out, clothes, presents)
holidays
Tally up your total outgoings and subtract them from your income, and whats left over is yours to spend or save if youre wise. If your outgoings are more than your income, alarm bells should be ringing. You wont be able to sustain this on a long-term basis and youll quickly find yourself in more and more debt. Nows the time to sort it out. You know where you stand with your income and outgoings, so you can now make changes and improvements to the way you manage your money. Below are some tips to help you cut down your spending and increase your savings.
Save, not spend
There are lots of ways in which you can live more efficiently, and a little goes a long way if you save just 1 a day, youll have 365 in a year! So everything counts:
Cook at home rather than buying ready meals and takeaways or eating out.
Cut down on your treats CDs, clothing, make-up etc. The best way in which to do this is to give yourself a budget and stick to it.
Dont buy designer labels or expensive brands cut down by purchasing high street clothes or the supermarkets own brand of groceries.
Just make your own lunch, or dont buy coffee at work, and youll easily save it.
Give up smoking its an expensive habit.
Switch off unneeded lights in your house.
Find out whether youre entitled to any benefits. The government has various tax credits and allowances for individuals and families on low incomes.
Open a savings account if you dont have one and set up a standing order to ensure that some of your income goes there every week or month.
Tax-free savings accounts such as ISAs (Individual Savings Accounts) allow you to save a certain amount each year without paying tax.
Leave your savings alone once theyre in your savings account, theyre untouchable. The more you have, the more youll make in interest.
Check regularly how your savings are performing and move to a bank account with a better interest rate if necessary.
If you get a bonus or extra cash, put it in your savings before youre tempted to spend it.
Dont buy anything on credit unless you really have to and only then if you know you will have the means to pay it back. Its a much more expensive way to shop, as youll pay back more in interest.
Most people start to have problems with debt when theres a major change in their life circumstances, such as getting married, changing job, moving house or starting a family. If any of your circumstances change, revise your budget and make any necessary adjustments.
If youre still struggling
dont sweep the issue under the carpet. The longer you ignore your money problems, the bigger your debts will get. We live in an expensive world nowadays and many people struggle to get by so theres nothing to be ashamed of. There are lots of organisations who can provide specialist help on debt management for example the government Insolvency Service, Consumer Credit Counselling Service and the Citizens Advice Bureau. Theyll give you free practical advice to help you get your finances back on track.
The first thing to do is to make a list of everyone to whom you own money, and sort the list into priority and non-priority debts. Priority debts are those that are secured against your home or could have serious consequences such as you being evicted or taken to court, and these must be tackled first.
Then speak to your creditors, for your priority debts first. Theyll be a lot more understanding if you explain your situation to them than they would if you tried to ignore their payment demands. Run through your budget and try to negotiate a repayment plan thats manageable for you.
Once youve managed to repay all your debts, dont let yourself get caught in the same vicious circle again. Live within your means, dont be tempted by credit or buy now, pay later, and keep a close eye on your budget and expenditure.
Benedict Rohan Website: http://www.mortgagenation.co.uk
Benedict Rohan works as a freelance finance writer. Commercial Mortgage, Homeowner Loans, Remortgages
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