What New Year resolution(s) did you make this year?

To lose weight? To get out of debt? To start your own business?  Get organized-finally. Whatever your resolutions are for 08′ here are a few things to consider -financially speaking.

If your car broken down,  your furnace went out,  you had to be rushed to the ER would you have enough money to help you out of this emergency?

An emergency fund is just that-a fund for the unexpected-in our society we have more unexpected things pop up than most of our paychecks can account for. Most money people think you should have 3-9 months of living expenses saved.   Your are probably thinking if you had that type of money you would be able to handle the unexpected.

Part of the 08′money challenge is to clean up our financial clutter. In the process of paying $5000.00 of  debt off ( credit cards, student loan, car and or house payment any other accounts that are not fixed expenses) we are going to learn how to live on less and start our very own emergency fund.

I will post information for our challenge on the 15th of every month.

Did You Know?

Seven Savings Strategies that Work

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  1. Don’t splurge with your tax refund. Save it, or use it to pay down debt instead.
     
  2. Take full advantage of retirement contributions.  Most companies offers matching up to a particular dollar amount to your contributions, this is free money! It’s a good idea to take it.
     
  3. Start small and stay steady. Start as young as you can, with whatever you can, even if you are simply setting aside pocket change.
     
  4. Pay yourself first. Choose the important over the urgent. Automatically deposit funds into your savings account right from your paycheck, before you can touch it.
     
  5. Create separate savings funds for the milestones in your life. These include not only retirement and education, but also weddings, buying a home and more.
     
  6. If you have children, find the right education plan. There are lots of different college savings plans. These may vary according to which state you live in. Compare plans and determine what makes the most sense for you and for your situation.
     
  7. Most important of all…Work with someone you know and trust. Successful savings plans can’t be mass-produced, and they can’t be put on autopilot. Financial issues are complicated and risky — It pays to work with a professional who knows what they’re talking about, and who also knows you and will stay with you over the long haul and through the ups and downs of your household.

Did You Know?

Debt-to-Income Ratio

Debt-to-income ratio is the percentage of your income you use to pay your debts. Most banks and financial professionals agree that you should keep your debt-to-income ratio at less than 36 percent of your gross income. If you want to get a picture of how your situation measures up, there’s a simple way to figure it out. Take your monthly gross income—let’s say three thousand dollars a month—and multiply it by 36 percent:

($3000 x .36 = $1080)

In this example, your debt payments shouldn’t exceed $1080 per month. It’s a pretty simple formula, and it gives you a quick guideline as to how much of your income is considered a comfortable debt load.

(Main Source:  CareOneCredit.com)

Saving Money

These days we have so many products to choose from to save our money.  However, consider the following before you commit to any savings program:

BUDGET–How much do I have to place into this investment vehicle?
TIME HORIZON–How much time do I have before I need to use it?
REASON–Retirement, College Education, etc.
TOLERANCE LEVEL–Higher the risk the higher the return–How much of a risk would I feel comfortable in taking?

(Main Source:  Camille Garrett, State  Farm Agent)

Hello World,

For all those who know me, you know that I love money, what I mean by I love money is: the money I make I want it to work harder for me than I work for it. I don’t want to be 65 years old and still having to work for money but choosing to work. With that being said, I have missed the weekly “money matters challenge” and since it has been a year since the last money matters, I figured we should start 08′ off with a HUGE money bang.

During this upcoming year I will be working towards my Charted Financial Consultant certification, this blog will be my outlet for all the things that I am learning about money and hopefully build a community where we share ideas about money and money saving tips.

Like the past money matters there was a challenge, for 08′ I am CHALLENGING all of you to PAY DOWN a minimum of $5,000.00 worth of debt.

See you in 08′