One in four (25 percent) say they would like to be less reliant on credit and debt in the future, 21 percent plan to keep a lid on spending on non-essentials, and 18 percent think they will save and invest more. Fifteen percent say they will now develop and stick to a financial plans.

This is an interesting development. If the recession really does result in a change to overall financial habits, then that could be seen as a definite silver lining. Now is a good time to take a look at your own financial habits and see what can be done about paying down debt, and reducing credit card use. And, of course, it always helps to make a financial plan. It would be even more encouraging to see more people decide to make use of financial planning.

Image source: JudeanPeoplesFront via Flickr

Post from: EveryJoe

Do You Plan to Change Financial Habits?

Be warned: The New Savage Number is not for the faint of heart. Savage is well-known for her investment savvy, and as the first woman trader on the Chicago Board Options Exchange (as well as being a founding member of that exchange). Her book includes numbers and even Monte Carlo modeling. However, she addresses how the numbers and modeling work, and renders them understandable. But sometimes it makes for heavier reading.

Overall, though, The New Savage Number is a comprehensive look at how you can figure out how much money you need for retirement, and develop a plan to meet your goals and needs. The book starts out by looking at the reality of retirement, and addressing the relationship between time and money. There is also a chapter on key questions you need to answer about your retirement, and possible life expectancy.

Savage then shows you how to use Monte Carlo modeling to help you plan your retirement, and looks at how you can create a portfolio of investments to grow your retirement funds, as well as how much you can realistically expect from Social Security. The New Savage Number also addresses long term coverage, and how to get the protection you need, as well as estate planning.

Bottom line: The book may seem a little intimidating at first, but Savage takes you through what you need to know, and helps you plan out a route to a retirement that you can depend on.

Post from: EveryJoe

Book Review: The New Savage Number

I received an email from A New Horizon, a credit counseling and debt solutions company, pointing out that some credit card issuers have loosened their requirements for hardship repayment plans. This could mean that you have a better chance at qualifying for a debt hardship plan if you are looking to repay your debt. However, it is important to consider the following things when going for financial hardship debt plans:

1. You may have to close your account: Many issuers will require that you close your account to take advantage of the lower interest rates or waived fees that come with a hardship debt repayment plan.
2. Your credit score could drop: Depending on the program you end up with, and if your credit account is closed, you may end up with a lower credit score, resulting in difficulties if you plan to apply for new credit anytime soon.
3. Be aware of fees charged by third parties: While some people benefit from having a third party help arrange matters for them, the fact of the matter is that many credit counseling and debt solutions companies charge high fees. It is possible to go directly to your credit card issuer and attempt to negotiate a lower interest rate or access to a hardship program.

In the end, it is nice that these hardship programs exist, but you should be careful before entering one. Read the fine print, and carefully consider your options before committing.

Image source: Daylife

Post from: EveryJoe

Credit Card Issuers Offer Hardship Programs

Benefits derived from fasting

Here are some of the financial benefits that you can derive from fasting:

1. Save money: When you aren’t spending the money on food, you can save it. My husband and I probably save about $10 a month for that one day we don’t fast. It’s not a whole lot, but $120 a year is enough to pay all of our utilities one month during the winter, or enough to cover all of our oil changes for the year. If we decided to fast twice a month, we’d save even more. You can probably think of plenty of things to do with that $120 — even invest it!
2. Learn to do without: Many people get in trouble with money because they don’t really learn how to do without. They have fallen prey to the ides that there things we “need” and we “need” them now. Fasting can help you learn that it is possible to do without, and how to defer some of your gratification. And this can transfer to your finances.
3. Build discipline: Discipline is essential for good finances. If you can discipline yourself to go without solids for 24 hours, you can probably transfer that discipline to other areas of your life — including your finances.
4. Possible health benefits: The exact health benefits of fasting are still being debated, but some agree that if you fast occasionally, being sure to drink plenty of water and eating healthy during the rest of the time, going without solids can provide you with some health benefits. And when you are healthier, you tend to spend less money on health care services.

And, of course, for the spiritually inclined, fasting about your finances can help provide you with insight on how to better manage your finances in a way that is in line with your religious beliefs.

In the end, there are some things that fasting can teach us about finances. And it can be a great practice to help you in other areas of your life as well.

Image source: USDA via Wikimedia Commons

Post from: EveryJoe

Fasting and Finances

Well, why this isn’t sports-related per se, Briston Palin has become a very popular subject around this blog! There was even a post (written before my time) that questioned if Bristol might might have been the mother of Trig, her brother.

Well it should come as no surprise that Bristol is in the news again, this time because she and fiance Levi Johnston have broken up! Shocker! Turns out having a baby before you’re even out of high school is NOT a great way to start a long-term relationship. Good to know.

Post from: EveryJoe

Bristol Palin and Her Finance Split Up