Living on a budget is the key to financial freedom, but getting started can be frustrating. When we look at our expenses and see all of those bills we’re paying every month, it’s easy to throw our hands up in disgust. But what about all those little expenses we incur? You might be surprised to find out just how much they amount to.

It’s easy to dismiss cutting back on little things. A few dollars a month won’t make a significant difference in the big picture. But a few dollars here and a few dollars there adds up to a few more dollars. When you cut back in a lot of small ways, you could end up with a lot more money at the end of the month.

Waste Not, Want Not

One thing we can do that is good for the budget is stop wasting so much. This can apply to many areas in our lives. From eating to home heating, waste equals money going down the drain unnecessarily.

Cooking for the family instead of eating takeout or dining out is a great way to save money. But if you’re throwing food out, the benefit is reduced. So if you have leftovers, don’t let them end up in the trash. Some dishes freeze well, and this makes for easy dinners when you don’t have time to cook. You could also eat dinner leftovers for lunch the following day.

If your home is not well insulated, you’re probably wasting lots of money on home heating and cooling. Insulating will cost some money up front, but it will pay for itself quickly. If you have drafts around windows and doors, weatherstripping can help maintain the temperature of your home.

Most households waste an unbelievable amount of electricity. This can be prevented in part by using energy efficient appliances and light bulbs. Turn lights, televisions, computers and other devices off when you’re not using them, and open blinds to take advantage of the sun’s light during the day.

Do Yourself a Favor: Do It Yourself

Any time you pay someone else to do something that you could do yourself, you’re spending money unnecessarily. This applies to little things like buying coffee instead of making your own, as well as to larger expenses such as home repairs.

Many of us buy coffee or a soft drink from a convenience store or coffee shop on the way to work in the morning. This can really add up over time. Instead, make your own coffee, or buy soda in 2-liter bottles and pour some into a smaller bottle or cup to take with you. The same applies to lunches. Instead of springing for fast food, take a sandwich or something microwavable to work.

While we’re not all good at all types of repairs and maintenance, most of us can do some things for ourselves. Maybe you could change your own oil instead of paying someone else to do it. If the walls need painting, consider getting friends and family to help you do it instead of hiring a painter. Things like these can save us a noticeable amount of money right away.

When you add up the savings, little things can make a big difference to the budget. So take a close look at your budget and see what small expenses are lurking there. If you can eliminate or reduce them, it could positively impact your bottom line.

The time we spend with our families is priceless. But most popular family activities are quite expensive. Even a simple night at the movies can put a serious dent in the budget by the time you buy tickets, popcorn and drinks for everyone.

Fortunately, there are cheaper alternatives to expensive family outings. They provide the opportunity to have just as much fun at a fraction of the cost. Some are even free.

Movies and Music

Kids are often itching to see the newest releases at the movie theater. Doing so even once a month, however, can get pricey. One alternative in some areas is the drive-in. Admission is usually much cheaper than it is at a regular theater, and some let you bring your own drinks and snacks. Drive-ins usually show fairly new releases, so the kids can say they saw something that’s not out on video yet.

Some theaters offer reduced-price matinees during the day. Some even have free kid-oriented movies on weekend days. These options offer the theater experience without the outrageous cost.

Kids often want to go to concerts, but tickets to see the most famous bands are far from cheap. Check your local paper for free concerts in the park. Many areas have them during the warm months. Young children can enjoy the music without the huge crowds and deafening sound systems, and older children might gain an appreciation for less well-known bands.

The Great Outdoors

Nature offers a wealth of possibilities for family outings. Camping is a wonderful activity for families, and it doesn’t have to be expensive. It can be as simple as pitching a tent in the back yard, or you can spring for a camper and rent space at a campground. Bring the grill and some hamburgers or hot dogs, or catch some fish to fry.

Parks are great for day trips. Those with playground equipment can keep youngsters entertained for hours on end. Hiking trails offer opportunities for exercise and exploration. Most parks have picnic facilities, so you can pack a lunch instead of eating out.

Other Ideas

Here are some more inexpensive family activities to consider:

* Play miniature golf. Admission is usually quite reasonable, and it provides the opportunity for relaxed yet engaging family competition.

* Visit a petting zoo. These small zoos do not have the exotic animals you see at larger ones, but kids can feed and pet the animals.

* Go to a museum. Some offer cheap or free admission, while others cost more. But the larger and more expensive ones often sell season passes, so if you live close by, you can visit numerous times for one low price.

* Go boating. If you’re fortunate enough to live near a body of water, boating is fun and relaxing. Canoe and paddleboat rentals are inexpensive, and when you’re done boating there are usually other cheap or free activities in the area.

* Attend events at a nearby college. These may include plays, concerts, dance recitals and movie showings. Prices are low, and student discounts usually apply to kids, too.

Having fun as a family doesn’t require a six-figure income. If you look hard enough, you can find lots of free or cheap activities that parents and kids can enjoy just about anywhere.

Debt has a way of creeping up on us if we let it. It’s important to keep our debt at reasonable and manageable levels, or we could end up incurring insane interest charges and scraping to make our payments. Even for those who manage debt well, unexpected life changes can result in difficulty making ends meet.

When we find ourselves having problems with debt, the first course of action is to take a look at the budget. Finding ways to cut back on unnecessary expenses can help us pay down debts and keep monthly bills current. But what happens when we can’t solve our debt problems with budgeting?

Sometimes we need outside help. It’s hard to go to someone else when you’re having money troubles, but if you don’t gain control over your debts, your credit rating will suffer. So it’s important to take charge before it’s too late.

Some debtors turn to debt consolidation as an answer to debt problems. They transfer high-interest debts to a lower interest credit card, or they put up the equity in their homes to get the money to pay them off. While these options can provide lower payments, they are not without drawbacks. Closing numerous accounts and putting all of your debt into one account can negatively affect your ratio of debt to available credit, lowering your credit score. And if you use your home equity to secure the money needed to pay off debt, you’re putting your home at an unnecessary risk.

Another popular option for those with debt problems is credit counseling. Credit counseling agencies offer help with budgeting, and in some cases, they will set you up with a debt management plan. A debt management plan involves negotiation with creditors to obtain lower interest rates and lower payments. The debtor makes one monthly payment to the credit counseling agency, and the agent forwards payments to each creditor.

A debt management plan can help you get out of debt faster, but it can also impact your credit. A note is added to your credit report stating that you are undergoing credit counseling. This means that you can’t get new credit. However, the notation is removed once you’ve paid off your debts.

It’s also important to make sure you’re dealing with a reputable credit counseling agency. Some charge high fees or fail to make payments to creditors on time. There have also been some that were found to be outright scams, keeping the money that debtors sent them to pay their bills with. When considering credit counseling agencies, make sure they’re members of the Association of Independent Consumer Credit Counseling Agencies (AICCCA) or the National Foundation of Credit Counseling (NFCC). These organizations regulate and monitor member agencies, making sure that they operate legally and ethically.

An overabundance of debt can wreak havoc on our finances and our credit scores. It can also be the cause of undue stress. By seeking help at the first sign of trouble, we can often prevent our debts from spiraling out of control.

In some cases, bad credit is a result of irresponsible money management. But it often occurs because of unexpected financial hardship. One day you might have all of your bills current, and the next you could become disabled or lose your job. And if you fall behind on your debts, it will wreak havoc on your credit rating.

Credit repair agencies claim that they can remove bad entries from your credit report. But did you know that you can often have them removed yourself at a much lower cost? There are two methods by which you may be able to get negative entries removed from your report.

Option #1: File a Dispute with the Credit Bureaus

The Fair Credit Reporting Act (FCRA) requires credit bureaus to investigate any item on your credit report that you dispute. If the information is found to be false, inaccurate or unverifiable, it must be corrected or removed from your report. The bureaus have 30 days from the time they receive notice of the dispute to complete their investigation.

If there is any inaccurate information on your credit report, a dispute is certainly in order. But some people have had luck disputing items that were in fact accurate, including judgments, collections accounts and repossessions. If such items are not verified by the creditor (or the court in the case of judgments) within the time limit for investigation, they must be removed.

If you decide to dispute a legitimate entry, simply write a letter to each of the credit bureaus stating that you dispute that entry. No explanation is required. But keep in mind that if the entry is verified, it will remain on your report. And if the creditor verifies the information after the 30-day time limit, the credit bureau may reinstate the entry as long as they notify you at least 5 days before doing so.

Option #2: Negotiate with Creditors

Dealing with creditors can be intimidating, especially if you’re not on good terms with them. But speaking to your creditors directly may help you get negative information removed from your credit report.

If you only have a late payment or two on your account, a creditor might be willing to remove the derogatory information once you’ve resumed a regular payment schedule. If you’ve experienced repossession or had an account turned over to collections, payment in full might persuade them to remove the negative entry. It sounds like a long shot, but you never know until you ask. Requests to remove late payment information may be made after you’ve brought you account current. But if you’re hoping for removal of a repossession or collection action, it’s best to negotiate a deal before you pay anything.

If You Can’t Get the Bad Entries Removed

There is no guarantee that disputing information on your credit report or negotiating with creditors will get negative items removed from your record. If it doesn’t, the best thing you can do is try to build up some positive information on your report.

The first thing you need to do when trying to rebuild good credit is bring past due accounts current. Try to work out a deal with your creditors to accomplish this, or talk to a credit counseling agency. But don’t miss payments on current accounts to put money toward those that are past due. If it comes down to paying one or the other, keep the current account current.

Once you’ve brought all of your accounts current, put a priority on keeping them that way. Making your payments on schedule will raise your credit score, and with the passage of time, the good entries may outweigh the bad.

For singles, creating a budget is relatively easy. They tend to have a good handle on how much money they have coming in, and when tracking expenses, they only have their own to think about. But creating a family budget is a whole new ball game.

Most families have multiple sources of income. And when there are multiple spenders, that makes things much more confusing. This is one of the main reasons that families lack a formal budget. But having a budget and sticking to it can greatly improve a family’s financial outlook.

Making a family budget may be tricky, but it can be done. Here’s how.

1. Take inventory of all income. If a certain source of income fluctuates from month to month, use the lowest amount or average it out.
2. Keep track of all expenses for a month or so. Keep all of your receipts, and ask all family members to turn theirs in to you each day.
3. Add up your monthly expenses. Be sure to include bills, debt payments, groceries, and everyday expenses such as lunch money and transportation costs.
4. Get the family together and discuss ways you can trim the budget. Getting input from other family members will help you determine which expenses are necessary and which ones could be cut down or eliminated. Maybe you or your spouse could start taking lunch to work instead of eating out, or maybe the kids can drop an extracurricular activity.
5. In addition to individual expenses, discuss how you can cut down on the electric bill, groceries and other necessary family expenses. Consider such things as carpooling or taking public transportation, buying more generic foods and adjusting the thermostat.
6. Estimate how much you can save on regular expenses, and cut the completely unnecessary items out of the budget. Then refigure it and see where you stand.
7. If you end up with a surplus, allocate a portion of it to savings. If you’re in the red, go back and rework the budget until you have more income than expenses.

Being Realistic

One reason that family budgets often fail is because they’re just not realistic. It’s great to cut down on expenses, but sometimes we tend to go too far. For example, cutting entertainment out of the budget completely might look good on paper, but we all need a little diversion every now and then.

Instead of cutting such things out of the budget completely, consider finding ways to lower the cost. Going back to the entertainment example, maybe you’ve been going to dinner and a movie as a family twice a month. But eating in and renting a new release would be much cheaper, and you would still get to spend quality time together.

Individual expenses can also be tricky. This can be resolved by allocating a certain amount for each family member to spend each week. If someone spends his entire amount before the week is up, reevaluate his expenses and adjust if necessary.

Creating a family budget can help keep spending under control, leaving more money to pay down debts and save for future goals. But in order to succeed, close monitoring is essential. Your efforts will be rewarded, however, with less financial stress and more money in the long run.

Understanding An Adjustable Rate Mortgage

Among the options you have when choosing a mortgage loan, there are those of a fixed or adjustable interest rate. While the fixed rate is easy to understand – the same interest throughout the life of the loan, it could be a good idea to have a closer look at how an adjustable rate mortgage works.

As the name suggests, the interest rate of such a mortgage loan does not remain the same until the loan is paid off in full. Instead, it will be recalculated after an initial period which can vary from one lender to another.

In order to know how long the loan will operate at a fixed rate, you should check the two numbers usually accompanying the loan offer. The lender will normally propose something in the form of 5:1, 1:1, or 3:2. These are, of course, not the only possibilities, just the most common. The first of these two numbers will tell you how many years the rate will remain unchanged before the interest rate is reviewed for the first time. The second number represents the interval at which the following reviews will take place. Thus, in the case of the first two numbers in our example, we are dealing with a mortgage whose interest rate will not change during the first five years, after which it will be reviewed and changed every year.

When opting for either a fixed or an adjustable rate mortgage, you should be aware of the benefits and risks involved in each type. For that, you should also be familiar with the current market situation and the expected trends. As far as the fixed rate mortgages are concerned, there is not much prediction necessary: the rate will simply not change. If, however, you choose an adjustable rate mortgage, you should have reasons to believe that the rate will not change in a way that is unfavourable to you. In the next paragraphs, we shall further discuss the advantages and disadvantages of adjustable rate mortgage loans.

The number one advantage of an adjustable rate mortgage is that the rate at which it is offered is normally below that of a fixed rate mortgage. Since the lender is free to change the rate after an agreed period, they can afford to offer you the most attractive rate for now. If you don’t plan to hold the mortgage for more than a few years, it could be a smart choice to take advantage of the low rate and choose the adjustable type.

If the interest rates on the market are currently high, an adjustable rate mortgage can again be an attractive choice. That is because the rate can be changed after a while, when the market comes back down. On the contrary, with a fixed rate mortgage, you would have to keep paying that high interest for the whole duration of the loan.

But if everything could only change for the benefit of the borrower, lenders would stop offering this kind of mortgage. There are also chances that the interest rate will go up, and so will your monthly payments.

Therefore, if you’re willing to take risks, or if you have reasons to believe that the interest rate will decrease in time, you should go for an adjustable rate mortgage. If, however, you feel more comfortable knowing that the interest you must pay will remain constant, then you should choose the other option.

What Should You Do If You Get Turned Down For A Credit Card?

So you?ve gone through the long and terrible process of giving your details, only to find that you got turned down. This can feel a little insulting, like a rejection, especially if you feel like you could easily handle the card in question. So what can you do if it happens?

Try, Try Again.

Don?t get upset if you?re turned down at one company ? they might have some strange requirement that you happen not to meet. Always try three before you start to despair.

Whatever you do, though, don?t spend a whole day applying for every credit card you can find, just to see if anyone will take you. Each check is counted, and lots of checks on your record make you look desperate, making it even less likely you?ll get a good card ? this is known as ?shotgunning? your credit.

Get Your Credit Report.

Send off to the credit reference agencies to get copies of your credit reports. There might be something incorrect on there that?s making you look bad, and you need to get it corrected if there is. Make sure you do all this in writing, so there are records of it ? don?t phone up and let them fob you off.

Phone the Company.

It?s not a good idea to always deal with credit card companies by post or on the Internet ? you should try to phone them up and speak to a real person. This way, you can tell them all your circumstances, make sure everything went through correctly, and question them if you get turned down. If you directly ask why you haven?t been accepted, then they usually have to tell you.

If you?re willing to be pushy, you might even get the decision reverse. If the person you got through to won?t budge, then always ask for their supervisor before you hang up.

Apply for a Less Prestigious Card.

Yes, I know, it sounds bad ? but you want a credit card, don?t you? Get a high-rate card from the company whose card you want, and then pay it off on time each month. You?re building your credit rating. The chances are that you?ll be able to persuade the company to replace your card with the lower-rate one after a few months.

If you have a very bad credit rating, you might find that you are only offered secured cards. These cards require you to make a cash deposit before you can start using them. It?s worth saving up the deposit and using the card for a while, though, as you?ll usually be offered a normal card quite quickly, as long as you don?t do anything terrible with the secured one.

If that all sounds like too much trouble, then you might like to try a pre-paid credit card. These cards must be loaded with money in advance, but from then on work like a normal credit card ? except you don?t pay any interest or fees! Well worth it if you only wanted a card for the convenience anyway.

Secured Credit Cards

If you have a bad credit history or no credit history and want to establish your credit, consider applying for a secured credit card. Unsecured credit cards are not easily obtained for those with a blot on their credit rating or someone who hasn’t established a credit history. Lenders are hesitant to take the chance on any person who doesn’t have a flawless credit history.

A secured credit card looks identical to an unsecured credit card and usually offers the same security and charging privileges. The difference is that with a secured credit card you have to pay the credit card company a deposit of security that amounts to the same amount as your credit line. This assures the company that they will get their money back if you turn out to be a bad credit risk.

Secured credit cards work more or less like bank debit cards, except the money spent is not withdrawn immediately and the user makes payments monthly. They’re also similar to ‘prepaid’ credit cards, in that money must be outlaid first. With prepaid cards, however, the cards are ‘loaded’ with any amount desired. Also, there are fees extracted every time the funds are input.

Some credit card companies may be willing to give you a limit that is a little above your security deposit. Others will only offer a limit that is lower than your security deposit. If you are considering a secured credit card, shop around to find out what your options are. A secured credit card can be right for you

* if your credit history is poor.

* if you have delinquent student loans.

* if you are separated from your spouse who has a high debt ratio.

* if you have declared bankruptcy.

* if you’ve had a disruption in your employment or have recently started a new job.

A secured credit card does the following:

* Helps you to establish credit if you do not have a credit history.

* Helps you re-establish your credit if you have bad credit or have had to declare bankruptcy.

* Offers security in times of emergency.

* Gives you many of the same benefits as an unsecured credit card.

Disadvantages

* You have to make a security deposit, usually equal or more than your credit limit.

* The funds you deposit are frozen until such time as your credit history is re-established.

* You may not be reimbursed for the interest on your security deposit.

Of course, there’s no free lunch associated with obtaining and using a secured card. Since the applicant is considered high risk, a higher APR is charged. That makes making monthly payments harder, which is usually what generated bad credit history originally.

To work around the dilemma, users should be sure, (for the first year, at least), to keep charged amounts low and make efforts to pay off almost all the amount due when the bill arrives. Notice ‘almost all’ because one of the most effective ways to build good credit history is to make payments on time and pay some interest. That raises your credit score quickly. If you use your secured credit card wisely, soon you’ll be on the path to a good credit history.

Student Credit Cards: The Basics

We all know that credit cards are convenient, but they are fast becoming a necessity. Even high school and college students are getting into the game. A student credit card works in the same way as any other card but is specifically geared toward high school and college students and often comes with some restrictions.

Some companies require a parent or guardian to act as a back up source of payment. The parent is asked to co-sign a student credit card. The responsibility of the co-signer is to cover any debts a student may incur if he or she is unable to pay them. In addition the interest rates on a student credit card can also be higher as this minimizes the financial risk to the company. Finally, as few students have established credit ratings, the spending limit can be significantly lower for a student credit card. It is usually kept between $500 and $1000.

There are also some positive aspects to student credit cards. A student credit card can establish a good credit rating. A credit rating is important for anyone who plans to borrow money to finance a car, a house or, for those more fortunate spenders, a world cruise. A student credit card, if managed wisely and paid off regularly, can be a first huge step toward financial independence. With a solid credit rating, a student’s chances of being approved for a full loan are greatly improved.

A student credit card teaches financial responsibility within reasonable limits. Because the student credit card works like its adult counterpart, mastering its use can be beneficial to a student’s money managing skills in the future. It will give him an opportunity to create a budget and stick to it. This is a necessary financial skill and one that will become a habit if started early.

As convenient as a student loan may be, there are possible pitfalls. But if a young person is warned, much can be done to avoid them. To avoid overspending, creating a budget is probably the best protection a student can have. A realistic view of the money coming in and going out is essential. If at all possible, a student will be wise to stick within the budget limits.

‘If you can’t afford it, walk away’. This sounds obvious, but a credit card has a lot of power. That little piece of plastic gives a young person the immediate means to buy a ticket to a concert, a new pair of jeans or a fancy dinner for that new girlfriend. It’s easy to think, ‘I’ll worry about that later’. Resist! It’s better to worry about it now.

A student credit card, when used responsibly in moderation, can be a huge step toward financial independence. If it is treated with respect, it will remain a servant instead of the master.

Prepaid Debit Cards

During the 1990′s credit card companies had to look at a different means of securing their debts because of great losses. At that time they came out with the secured credit card and following close behind came the prepaid debit card. Prepaid debit cards are issued by most credit card companies, such as Visa, American Express and Mastercard. In this instance, funds are added to a prepaid debit card at a retail location or through an online bank. The prepaid card works very much like a prepaid phone card. Basically, a prepaid debit card is cash that has been applied to a plastic card so that the funds can be accessed electronically. These cards are set at a limit that is identical to the amount deposited. Each time you use the card, the amount on the prepaid debit card decreases until it reaches zero funds.

Prepaid cards have a wide range of benefits. They are much safer for consumers to carry than cash and they can be used in all countries in the world, depending on the company you chose to obtain a prepaid debit card from. Mastercard, American Express, Visa all offer these cards, as do some banks.

Other benefits include not having to worry about a monthly credit card bill or debt. Any person who is over the age of eighteen can carry a prepaid debit card, regardless of their credit history. Even those with extremely poor credit can access a prepaid debit card because they have to have the funds before the card is issued.

Prepaid debit cards can easily be re-loaded by phone or online as long as there are funds available. This allows easy access to electronic funds when on vacation and during business travel. Many companies are now using prepaid debit cards in place of expense accounts or company credit cards.

As with any other type of card the fees can be astronomical. There are fees attached for getting the card, re-loading it, for going over the limit, cashing out the card and canceling it if you should decide to do so. The cards with the lesser fees are the best to use, so check around to see which companies are offering the best deals. The average cost for re-loading a prepaid debit card is around $5.00, so be sure to add enough funds to cut down on repeat re-loading.

Funds from prepaid debit cards can only be accessed with your PIN number. Be sure to change it often and never tell anyone what it is. It is best if you have your bank or the company where you obtain the card to put a daily maximum on it in case your card is ever stolen or in the rare instance that someone is able to obtain your PIN number.

For the most part the advantages of prepaid debit cards far outweigh the disadvantages, especially for those who cannot meet the criteria to obtain credit cards because of a poor credit history. But remember, prepaid debit cards have to be used responsibly, just as any other card. They are easily to load time after time until your bank funds are depleted. Be sure to keep records of your purchases to prevent this type of catastrophe.