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With the Occupy Wall Street Protesters aiming their message at our nation’s income disparity, they are actually calling out for wealth distribution and causing class envy. Many are now increasingly unhappy that there are people out there who have more on everything, more money, nicer cars, bigger homes or take more lavish vacations. (more…)
As the days grow warmer and longer, that freedom-of-summertime feel returns to even the most jaded of hearts. The long daylight hours allow us to do things in the out of doors until later and later into the evening, reminding most of us of those days of childhood when no ‘real’ responsibilities raised their heads to take a loan out on our time. Even as we deal with a loan on the house, a payday that seems to never come on time, or a broken computer or fax machine, in no uncertain terms, the summertime seems to blunt the irritations of daily life. (more…)
Image by Adam Crowe via Flickr
The depressing financial crisis has pushed people to find ways and means to alleviate poverty or the financial catastrophe they are entangled in. More and more people are seeking alternatives to supplement their meager income. Most of us are trying to live within our means, that means sacrificing on some of the luxuries and non-essentials in our lives.
With sky rocketing school and tuition fees, the rising prices of basic services and commodities (such as milk and meat) and the ever-increasing prices of gas and oil makes it that much harder to live a comfortable lifestyle. With costs and bills continuing to increase everyday while paychecks stay the same, how can one live comfortably?
While we all know that the minute we drive the new car off the lot it depreciates several thousand dollars, Americans are still in love with that new car smell. It’s estimated that after a mortgage, the car payments are the one thing that we overspend on. Getting in a lot of debt with a new car is easy. It’s not just the monthly payments, but also the maintenance and insurance that can add several thousand dollars on top of that yearly. If you want a new car, but can’t afford the payments, what are your options?
Leasing a new car can lower your payments, but you will not own any equity in the car when you are done leasing. On top of that, you may end up paying higher insurance rates for coverage your lender may require above the minimums. On the positive side, many people enjoy leasing because the car is under warranty and they can be reasonably certain they will not have any major car repair bills that they can’t handle.
To avoid the depreciation and lower the amount you owe to get out of a lease, you can buy off someone else’s lease. There are plenty of websites that cater to people trying to sell a lease they can no longer afford. Once you take over the lease, you will be responsible for payment, but sometimes you can negotiate a very low payment and refinance.
If you must have the new car, and find yourself having trouble making the payments, you will have to come up with the cash before the lender repossesses the car. Car companies are known to be quite aggressive when it comes to late payments as well.
The Ipod generation is a new term coined to represent the segment of the population that is between 20 and 35 who have a limited financial outlook. The UK’s Reform think tank labeled them: “insecure, pressured, overtaxed, and debt ridden.” The pressures this generation faces amount to higher housing costs, higher taxes, low wages, unstable job markets, and large forms of debt due to student loans and credit cards. Despite the relative affluence of the generation that sports Ipods and other technological wonders, the quality of life and financial outlook are forecasted to be much more difficult for this generation than previous ones. If you are a part of this generation, what options do you have to make it despite the odds?
Put it into Context
While it is probably true that life is much more difficult to navigate for the younger generation, it doesn’t mean they are doomed to a life of poverty and frugality. Many people in previous generations also underwent harsh financial climates ranging from war to the Great Depression. The fact that the world is still in a relative peacetime means that despite the poor financial outlook, there is still hope. The problem may be more psychological than it is completely circumstantial. If you are thinking that you are owed a certain lifestyle because your parents have it now, you may have to rethink how long it took them to get to where they are now. Every generation has to make their way, and if the environment is less than easy it doesn’t necessarily mean it’s impossible. Keep a positive attitude and start to plan your life instead of letting it happen to you.
Overwhelming Long-Term Debt
The single most powerful issue for this generation is the nature of the long-term debt that is being encountered by individuals who financed their education through massive student loans. This can be a positive and a negative. In the past, if you didn’t have the money to go to school, you didn’t have the option to take out loans either. Now that credit is available to people in lower-income brackets, it comes with a responsibility to make sure you don’t get in over your head. With the job market the way it is, it’s not sufficient to assume that a degree will get you a job, so limiting the amount of long-term debt you have by choice can give you a head start in life that a degree might not be able to.
There are some things you can do to lessen the amount of debt you face after graduation, like working a part-time job to pay expenses. You can also use programs like work-study, employer tuition reimbursement, and cooperative education to help pay your way. Instead of finishing in four years, you can spread out the program to finish in six. This is fairly common and allows extra time for earning more money towards your tuition when it is needed.
Other strategies to lessen the amount of school debt are to choose a college or university that is not as pricey as others. As long as the program is accredited and can help you land a job, it is a reasonable option to consider. Some people even choose to go to a community college for two years and then transfer to a four-year program to help offset costs.
Time is on Their Side
While the outlook appears pessimistic, the truth is time is on this generation’s side. Yes, they may have to fund their own retirements, but if started early company sponsored 401Ks can help them meet their goals. Retirement savings that are started early gain compound interest that can add up to a lot by the time this generation is ready to retire.
In addition, the baby boomers are set to start retiring in a couple of years. There is additional research that indicates that once they retire, employers will be faced with a manpower shortage. If a person in the Ipod generation gets an education and has some job experience, the odds are in their favor to command a decent salary and have additional employer concessions their parents never got.
Some of the same reasons parents are not funding the education of the Ipod generation may end up coming back to roost in their laps. If a parent opted to save for retirement instead of contributing to a child’s college education, then it will be a reasonable twist of logic for these children not to help their parents in retirement. After all, the retirement was funded supposedly off the savings in their education due to the availability of credit. While it may be a harsh reality for some older retirees, it will be a likely turn-about.
Housing Prices
With housing markets crashing everywhere, it also seems likely that if this generation has patience, they will be able to cash in if they choose to relocate to areas with depressed prices. The same technology that gave them the moniker of “Ipod generation” may end up being their salvation as they learn to telecommute and take advantage of lower gas costs, lower maintenance costs and areas where the cost of living is cheaper.
This generation still has time to cash in on the mass retirement of baby boomers. As the inventory of houses continues to increase, the housing prices are sure to fall. If the Ipoder has been smart about reducing their debt burden, they will find themselves in an enviable position not too far down the road. So, despite the “doom and gloom” scenarios laid out for the Ipod generation, there is still ample wiggle room for Ipoders who are evaluating the changing winds. Building wealth isn’t just about your present situation, it’s about knowing how to take advantage of foreseen trends. If they begin to plan now, the clever Ipoder can demand many concessions and perks from employers that their parents never got.
The key to planning for your financial future is to make smart long term investments and to make necessary sacrifices in your present life that will make your future much easier. You need to think long term, this means to start saving and adding money to your 401(k) plan as early as possible and to put as much into this account as you possibly can.
Financial advisers recommend that you invest in a more diversified portfolio of mutual funds. You should calculate your necessary monthly spending and the amount of money that you take in monthly. Make a list of everything that you need to spend and see what is left over. Whatever you have left you can put to work on the stock market, into a savings account or use the money in another different investment plan.
We tend to overspend and make purchases we know we don’t have to make. If we continue with these types of purchases we won’t save anything and we won’t have any guaranteed money when we retire. According to a recent study, the average American can cut their spending by 10% without a drastic lifestyle change, however, we choose not to.
If you are a smart investor you should know not to use a credit card unless it is an emergency. You are spending more money to use the credit card and you could be saving the money you spend on interest and using it in the future. You could have money in your savings account and be earning interest on it instead of spending it on interest.
The sooner you begin saving toward your retirement and future, the more money you will have when that time comes. Make sure to take advantage of retirement plans your company may offer, they usually match what you put in. If you turn these down you are turning down free money that will help you live a more comfortable life during retirement.
Your future should be important to you. Granted, you cannot say specifically how long that future will be or what might happen over the next several decades, but you can plan for your financial future and if things change you can modify these plans to suit your new needs. A Roth IRA is one way you can invest in your future in order to have financial security as you age. There are other IRA products out there, so it is also important that you understand what a Roth IRA is, how it can help you, and why it might be the better choice for you.
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Do you want to get a payday loan no matter what? There are cautions we must provide you with before you get that payday loan. We will also look at how you can get a payday loan no matter what your financial situation is. Below is a list of helpful information that you can make an educated decision from.
Payday loans will have a fee ranging from 1 to over 25 percent. The average fee for most companies is 25 percent. If you borrow $100 from a payday loan company you owe them at least $125 if the fee is 25 percent.
Depending on the loan amount you need you may find the APR is set up at 300 to 1400 percent. Typically the lower amount that you borrow has a lesser interest rate because the interest rate is based on risk. If the company has a smaller risk they offer a lower interest rate. This is not always true, but it is again an average of how things work.
Financial success comes not just from luck, but hard work and planning. You will have to learn not only how to budget, but how to invest. These days, the financial markets are very chaotic and learning new ways to increase your wealth is very important. The old standbys of matching funds to 401Ks and pension plans are fast disappearing off the financial landscape. How can you make your money work for you harder at a time when the banks are paying measly interest rates on most accounts?
People who have started their New Year’s resolutions are either dieting, trying to quit smoking, or going on the wagon. Either way, a new healthier you can also mean a wealthier you. Some positives about the economic situation are that many people are realizing that their unhealthy habits can cost them big bucks. Drinking, overeating, and smoking aren’t just bad for you personally, they’re bad for your wallet. In terms of value, just dropping a few bad habits can put $30 to $50 in your pocket a week.
