By: Barbara Zickau

Short term financing can benefit a person’s life in many ways. How many times have you found yourself with an emergency that needs to be taken care of but payday is a week away? What have you done to locate the funds? Have you borrowed from friends, family, taken out a loan at the bank or a last resort took out a payday loan? All of these options will allow you to meet the payment when it comes due, but which option allows you to feel that you are actually doing this without help? A bank might reject the loan application or if you ask for help, you might feel that your family and friends are looking down on you for something that you had no control over? Generally, most people will say a short term loan is their only option in an emergency. While, short term financing, via a pay day loan, does have the highest interest rate of all the options mentioned, it is the route does allow you as a person to feel that you are handling your life, by yourself, without help from relatives.

If a payday loan is the option that you determine to be right for you as a consumer, borrow only the needed funds and then repay as soon as your paycheck is available, to meet your short term needs. Many times, you can apply from the convenience of your home via the internet and can obtain up to $1500.00 to meet your needs and depending upon the site, you can have the funds in as little as 1 hour. If you apply online, you do not have to run into friends, family or neighbors at the local short term loan shop which often can only loan up to $445.00 at a time. For that amount, you will have to pay back $500.00. Both the online sites and the local stores use your income to determine how much you are eligible for with the short term loan. The amount of interest is based upon the amount of your loan and does increase as the amount goes up. To repay the loan, you have the option of paying it off with your next paycheck, paying the interest fee plus an amount toward the loan or paying the just the interest thus refinancing the loan amount until you can afford to pay the balance in full. As a consumer, you need to be aware that you have to budget the amount out of your paycheck as they will automatically deduct it, if you go through an online site. At a local store, you do have to pay the balance in full out of your paycheck but depending upon the amount you wrote for, you may be able to rewrite again for another loan, if needed. Financial emergencies can happen to anyone at any time, through no fault of their own.

For a person to be successful with short term financing, via payday loans, they need to determine their budget and pay the loan back instead of incurring fees each paycheck unless the person was determined to be eligible for a higher amount then the local store can loan. If this is the case, the person should make the interest payment as well as an amount toward the balance to get it paid off as quickly as possible. This way, the consumer saves the interest that would keep being charged if the interest payment was the only amount that was paid on each pay period. Keeping your head on your shoulders as well as only taking a loan for the amount that you actually need and repaying as quickly as possible will allow you keep your goals and dreams on track. Keeping your mind set toward the goals that you have determined will allow you to be successful with short term financing and allow for the ability to borrow again, when needed for another emergency.

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Everyone knows that paying bills on time is the major factor in keeping a good credit score. However, there are a few little known items that can swiftly undo all your hard work and have a very negative impact on your credit score if ignored. You may not even know what damage has been done unless you keep up with your credit profile. So, think back and try to remember if any of these things have happened to you. If so, you might want to ask for a free copy of your credit report and start the process of either removing the items or paying off any forgotten accounts.

Tiny Unpaid Bills

You may have moved without returning all your library books and walked away from that tiny debt. However, the libraries these days end up reporting unpaid bills to the credit bureau and even a $10 fine can affect your score. Municipalities that are looking to collect for unpaid parking tickets have also taken to reporting unpaid bills to the credit bureau. Have multiple small unpaid bills and you may be scratching your head later why you can’t ever seem to raise your credit score.

Uncle Sam Wants You – To Pay

If you owe the IRS and the process has gotten so out-of-control that the IRS has levied a lien on your property, then your credit will probably be damaged. Unlike a bankruptcy which remains on your file for seven years, a lien can affect your credit for up to 15 years. With so many payment plan options from the IRS, try to negotiate your debt with them so that it doesn’t get to the point of a lien.

Other Small Items

Getting a business credit card, shopping around for loans for a long time, and delinquent utility bills can all affect your credit. As payment collectors get savvier about how to lean on people who owe money, they turn more and more to the credit score. Unfortunately, the credit score is being used for more than just a measure to determine credit-worthiness these days. A bad credit score can affect your job prospects, increase your insurance premiums, and get you denied for housing when looking for a rental. That means that you should pay attention to even the smallest items on your credit report, even if they don’t appear to be affecting the entire score much.

Review Your History

Part of maintaining a good credit history is getting a credit check-up annually. You can get a free credit report from each of the three major bureaus and pour over it for mistakes. Disputing an entry may not immediately raise your score, but it at least gives your side of the story and can eventually cause the entry to drop off your credit history. With so much riding on your credit history these days, it’s a good thing to make sure it is as accurate as it can be and to pay attention to even the tiny entries that you may have forgotten, but are still haunting you years later.

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It’s a long haul to get that diploma, but not soon after the celebration new grads are faced with new financial dilemmas that need careful planning. School loans can come due, health insurance benefits may or may not need changing, and in today’s economy a job may not there immediately to save the day. Careful financial planning is in order to keep your spirits high until you can land your first big gig.

Health Insurance

Luckily, new health insurance rules allow you to remain on your parents’ health insurance until you are 26 years of age. Even if you are over that age, you can still get an insurance plan for $100 or less if you are still in your twenties and healthy. Obviously, pre-existing conditions will require more money to cover, but at least now they are available.

Rent

Until you get your foot in the door to some company, it is a good idea to return home for free or very low cost rent. Today’s job market can mean months of looking for work and with no steady income you don’t want to sign for an apartment that you might not be able to retain. If you do have a side job or some other source of income, don’t forget to get renters’ insurance to cover your possessions in case of a loss. Look for a roommate to help offset rental expenses, but make sure both your names are on the lease so that you don’t end up responsible for the entire rental.

School Loans

If your loans are through the government, they have many programs to help you while you get on your feet. You can defer the student loans or put them on an income-based repayment plan.  If your loans were with a private lender, they will be stricter with repayment. You will have to budget the amount they want to keep your credit from being ruined. Living at home is one way to offset the cost of student loans that come due. If your parents co-signed student loans, they are also responsible for repayment and can have their credit affected if you fail to make payment arrangements or keep to payment schedule.

Once You Land a Job

Start planning for the future immediately.  Create a budget for your income and expenses and find out how much true disposable income you have. It’s important to set aside at least six month’s emergency fund even before you start funding your retirement. Layoffs are so common in this economy that a cash cushion can help you if things do not work out as you’d planned. After the emergency fund, think about setting aside funds for a retirement account, particularly if your company offers a matching benefit. This will help to build a nice nest egg and also reduce your tax liability. Once you have some extra money in your pocket, you can start building a house fund or a vacation fund. Think ahead and avoid getting in too much debt to keep yourself solvent and flexible should disaster strike once again.

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Sure, Valentine’s Day was yesterday. You can chalk up this great advice as getting a headstart on next year’s Valentine’s Day, just like all that discounted heart-shaped chocolate you bought today that you know will be eaten before the weekend. Yeah, we did that too.

Your sweetheart is looking forward to a romantic dinner for two, but you’re still trying to figure out how you will fund it. People who are suffering in this economy still want to celebrate their life and their relationships, and there are ways to do it without waking up the next morning with a debt hangover. For Valentine’s Day, the perfect dinner for two can come with all the bells and whistles as long as you keep in mind a few cost-cutting strategies.

Daily Deals

Check out online daily deals like Groupon or LivingSocial offers. These companies try to offer deals their customers need and holidays are prime time to snag a restaurant coupon that will slash your cost in half or get you into a restaurant that normally might be out of your price range. Just be sure to check the terms of the coupon to make sure they are good during the holiday.

Eat During Off Hours

Who said it had to be a whole Valentine’s Dinner? It can be a Valentine’s drink during happy hour, a dessert at a fancy restaurant, or an appetizer at the bar. You can also check out lunch specials which normally have smaller portions and cost less for exactly the same meal as dinner time.

Order Out

When you have to add an extra 15 percent just for a tip, ordering out makes sense. You can set the table at home for a private and romantic dinner with food from a 4-star restaurant without the extra cost of paying the server. You can find even further savings ordering online by checking out any specials or coupons for sites promoting their delivery service on Valentine’s Day. What’s really nice is you get to avoid the crowds while enjoying the fine cuisine of a nice restaurant.

Be Your Own Chef

It goes without saying that cooking your loved one a romantic dinner is always appreciated, especially if you are a gourmet foodie. Even if you’ve never attempted to cook at home, you can try out some easy appetizers at home and supplement with take-out. If you really want to impress your date, cook something unusual that is not too hard to do, like Cornish hens. Just keep your date’s taste in mind. You may love fish and oysters, but they may not like it much. Also, be aware of any food allergies they might have to avoid cooking with those ingredients. Even the less adventuresome cooks can find some unique ideas by visiting a local gourmet food shop.

If you don’t think you can pull off a main course, opt for tapas-like spread of all appetizers, some fruit, cheeses, and wine.  As long as the wine is good, the food may not matter as much. If your date likes the great outdoors, pack the items into a picnic basket and find a nice spot to park and watch the stars while you eat. If you live near a beach, a sunset picnic is always a date-pleaser and very romantic, without paying for the finest table in town.

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Explore the Five Senses!

Being cash poor doesn’t have to affect your Valentine’s Day. There are plenty of low cost options available for the couple on a budget. Just remember that Valentine’s is not about how much buck you spend, but what kind of bang you get from your Valentine’s plans. To keep your budget intact and the romance still in your relationship, seek out experiences that cost little, but make for bigger memories by engaging all your senses.

Sightseeing

If your loved one is a visual person, why not take her hiking to a beautiful natural park? If the mountains aren’t his or her thing, check out a nearby beach. You can always watch the sunset and build a bonfire when it gets dark. Learn to appreciate the free things in life, like the stars and the beauty outdoors.

Get in Touch

For those who lean towards a more kinesthetic disposition, schedule dance classes together. Touch is very romantic and even more so when put to music. Most studios offer one or two free dance classes as a way to introduce their packages to new potential dancers. If you don’t want the formality of a dance class, give your sweetie a coupon for a special massage to be redeemed at their discretion. You can add scented candles, incense, and body oils to make it a night to remember.

Listen Up

Do you have a special musical skill? Can you sing a song or play a guitar? Now is the time to dedicate a special song to your loved one. Take them to a karaoke bar and let everyone know how you feel about your partner or plan a special private concert. You can create your own song or choose a favorite melody that your Valentine would love to hear. If you have no musical talents, but can still write a heart-warming poem, then poetry recitation is more than appropriate on Valentine’s Day. You really can’t get too mushy when it comes to this holiday.

Smell the Roses

Flowers are a great Valentine’s gift, but they are very expensive. Instead, buy a single rose and add some scents with candles and incense. If she is the type that loves perfumes, she will most likely also love less expensive bath and body products. Scented bubble bath isn’t just nice-smelling, it’s also very sexy. Even men like to get colognes and aftershaves that smell good for Valentine’s Day.

Other Tasty Options

Yes, chocolate is obligatory. There’s no way to get around that. Luckily, chocolate is fairly inexpensive when it comes to gifts. You can mix it up a bit by combining different types of chocolates from bitter dark to creamy white chocolate. You can almost always find a package in your budget. However, if he or she loves your cooking, why not make a special dinner to celebrate Valentine’s Day? It’s less expensive than going out and you can show off your cooking skills. If you want to combine it with sightseeing for a double bang, pack a picnic basket and head out to your local waterfall. They’re even prettier in the winter time than in the summer time and it’s likely you’ll have the place all to yourselves.

Winter may not have dumped tons of snow in the United States this year, but that hasn’t kept people from dreaming about their next vacation. Fleeing bad weather may be a prime motivator when figuring out vacation plans, but others seek an experience that is different and novel enough to infuse more passion in their lives. Instead of a lounge chair on the beach, these folks want adventure and cultural stimulation that will help to spice up their lives. However, exotic or cultural travel packages usually don’t come cheap – unless you use specific strategies to bring the price down.

Volunteer to Help Out

Depending on your skill set, you will have different options to volunteer during your vacation time and get some of your costs taken care of by the volunteer organization. For instance, you can choose to teach English in a place like Thailand and visit the local culture while there. You can get the cost of room and board, in some cases, or a travel ticket. Use non-profits like Habitat for Humanity or the Foundation for Sustainable Development to located trips that will take volunteers. You do have to work while you are on vacation, but that helps offset the cost of the entire time away.

Go Out of Season

Another strategy that can shave off dollars from your next vacation is to simply go out of season. Spring vacation is the time when most students will be looking forward to hiking and camping trips, along with trips to Cancun and other warm areas. You can opt to be a little different and reserve your trip for a time when most people are choosing to stay home. The cost of airfare will be lower, and attractions have fewer peoples. This is a good strategy for camping and hiking trips, if you don’t mind being a little chilly. However, for more commercial areas, you should check ahead to see that your favorite attractions are open during the time you want to visit. When the tourists go home, sometimes businesses shut their doors.

Check Out Mom and Pop Outfits

Adventure travel agencies range from large commercial endeavors to the local mom and pop. If you are looking for a guided tour of the Mayan pyramids, you can still find local agencies that can accommodate you for less than the bigger outfits. You will need to check them out online to make sure they can deliver the goods. Make sure they have been in business at least 10 years and check out their reviews online via a site like TripAdvisor. You will find these agencies know their locale intimately and can offer you sightseeing suggestions that might not be as popular or as expensive as the larger groups, yet just as fun. If you have a way to do a homestay, this can also help to offset costs and immerse you in the local culture in a way that staying at a hotel will never do. Just be flexible about where you will be going, what you will be doing, and who you will be staying with and you will be able to save a ton of money and have an unforgettable trip at the same time.

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Wave a home office deduction in front of the IRS and you may end up audited. Accountants have long known that certain deductions on your taxes are red flags for the IRS which can lead to an audit. If you are the average employee taxpayer making under $100,000, the odds of being audited are about 1 in 154. However, just own you make over $100,000 your odds increase to 1 in 72 chances of being audited. While you might not want to lower your income just to reduce your chances of being audited, there are some actions that easier to avoid that could cost you later if the IRS pulls your return.

Check Your Return Twice

Believe it or not, bad math can send you to the front of the line with the IRS – the line to be audited. You can avoid math errors by having a professional preparer look over your return or using tax software that is unlikely to have problems doing math. If you do it yourself and you even do a small error, it may be enough to get attention that you’d rather not have from the IRS.

A simple mistake like failing to sign your return is a cry for attention. At least, that’s what the IRS thinks. Don’t sabotage your own return by failing to sign it. The logic is that if you aren’t willing to sign it, there must be something in it that is not right that you’d rather not see your name on later.

Another common error is failing to report all your income. If you don’t get all your 1099s or W2s, call your clients and employers to make sure you have the necessary documentation. It’s better to wait for later forms than to file without all your paperwork. Don’t forget income that you get from other sources that may not come with documentation. If the IRS sees expenses on someone else’s return with your name on it, it suggests you received that money as income and they will know you under-reported the income and audit you.

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Business Deductions

Business owners have to be particularly careful to report their income correctly. The IRS knows that cash businesses like hair salons, restaurants, or other service professionals may be tempted to hide income. If you have a business that takes tips, that can be a red flag. Hiring family members to work in your business can also trigger an audit, if the records are not kept immaculately. If the expenses for your business are far more than normal for that business, you can expect a visit from the IRS. Businesses that make $50,000 should not have $30,000, especially if many of the expenses end up in a relative’s pocket. Finally, some entrepreneurs who work from home do not take the home office deduction because it is a favorite red flag of the IRS. You have to prove that the home office is dedicated to your business and is not used for personal purposes during the times that you specify, otherwise the IRS will disallow your home office deduction – after they’ve audited you.

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Banks have had their share of the blame during the recession as many Americans are still stinging over problems in the housing market. While demand for housing dropped and foreclosures rose due to unemployment, banks were seen as complicit in the housing crash due to the ease of obtaining a house (whether you could afford it or not) and the “robo-signing” scandal. Since banks are in the business of turning a profit, it has never been an option to forgive a bad loan. Now, the Obama administration has stepped into make it easier for underwater homeowners, those that owe more on their mortgages than they are worth, to be able to obtain relief via a new home financing program that gets the banks on board first.

Early Stages

Banks have not whole-heartedly embraced the programs, but despite that 40 states have signed up to take part in the program. Even though the sign-on deadline has passed already, there is great hope that with 40 states participating it can still be a step in the right direction. The amount of funds available to banks and distressed owners depends on the number of states that sign up. If all 50 states came on board, the pool of money would be $25 billion. Some larger key states, like California and New York, are still not in agreement, but the plan is still in its very early stages. Negotiations continue for these states and others, like Florida and Delaware, despite the deadline having passed. It is expected some agreement can be reached.

What It Means

For underwater homeowners, the new program would provide them with $20,000 of relief to pay off the principal of an underwater mortgage upon refinancing. States that agree to the deal will get immunity from federal prosecution for their role in the housing crash. Homeowners would still have the option to pursue proceedings against banks, but are less likely to do so if they obtain relief. More people would be able to stay in their homes and refinance to more appropriate levels. The program offers help for those currently at risk of foreclosure, but can do nothing for those who already have lost their homes during the housing crisis.

Oversight and Management

The new rules put in place for this program mean better oversight and management. In keeping with President Obamas ideal of a “fair shake,” they will be responsible for communicating better, not causing delays, and providing contracts that are equitable. Banks aren’t as happy with the new agreement as it still leaves them open for further legal issues. However, mortgage services and states will be off the hook as long as they abide by the new rules and promise to help about 1 million people who are estimated to be underwater on their mortgages. This in turn can lead to more confidence in the market and a stabilization of housing prices in the most hard-hit areas. Once the housing market recovers, it will be the last sign that the recovery is in full throttle and the U.S. economy is headed towards prosperity once again.

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That’s what one unlucky man found out when his entire village won the lotto. Filmmaker, Costis Mitsotakis was the only person in his town to not buy a lottery ticket, only because he was overlooked by the civics group that went door-to-door. While his neighbors each take home $130,000, Mr. Mitsotakis only benefitted by selling a piece of land to one of his newly rich neighbors. Lottery winnings for groups are becoming more popular as people in areas that are hard-hit economically look for ways to raise funds. It’s not a sure thing, but when it pays off it can pay off big.

Spain’s El Gordo Lottery

Gordo means fat in Spanish, and that’s exactly what the village of Sodeto got by pooling their money to buy tickets – a fat paycheck.  It has massive payouts, with this one totaling $950 million. The El Gordo lottery has been around for 200 years with tickets now costing $26 each. That didn’t stop every single resident, except one, in the village of Sodeto from buying a ticket. By combining their money with everyone else’s, they were able to pool the money to buy tickets and hold the numbers in common. When one paid out, they all won. About $150 million is going to the village.

Sodeto

This small town only consists of 250 people who are in the farming and construction trade. Many of these are unemployed and the lottery win is welcome relief to people who were struggling to get buy. Some residents have been transformed overnight into millionaires. One ticket for the lottery paid out $520,000 alone. Civic groups had taken to going door to door to hustle lottery tickets in an attempt to raise needed funds for a local homemaker’s group.  Of the 250 people in the town, there were 70 households in all that got blessed with winnings during the Christmas Day lottery. It is one holiday the entire village is not soon to forget.

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You expect a retailer to offer you a coupon, but now even banks and credit card companies are jumping on the online coupon bandwagon. While they are not in the business of selling specific merchandise, credit card companies have long offered discount perks to their customers and online coupon links are just the next evolution of that philosophy. With more people checking their statements online, instead of waiting to see them in the mail, it offers yet another opportunity for banks to put an offer before a captive audience for something tailored specifically for that person.

Understanding Their Audience

What better way to know what types of offers are attractive to a customer than to read a statement and see what has been purchased in the past? Your local retailer may keep records for just their store purchases, but a bank or credit card statement carries all purchases and is an easy way to tell what you might buy in the future. Instead of feeling like an invasion of privacy, many customers like the fact that their bank is paying enough attention to them that they can score some juicy deals, some as much as 50 percent off, by simply clicking a link when go to check on their online statements. Banks like the ability to pair up with merchant partners, offer deals their customers appreciate, and also spur more sources of revenue in a time of declining bank fees and spending.

Bigger Savings Opportunities

Unlike regular coupons, online links to coupons offer some special savings opportunities. Retailers have gotten smart with paper coupons often limiting the times of service or restricting them to one deal at a time. However, online coupons are not as easily tracked and can be stacked on top of other deals and are generally more flexible to use. For instance, by following a link in your account statement you might get 30 percent off flowers on Valentine’s Day. If the coupon takes you to an online shop that usually has a sale for flowers on Valentine’s Day, you can often stack that savings on top. Other ways to get more savings are to check for free shipping and other perks before you buy. That’s almost impossible to do these days with paper coupons and offers one significant advantage for online coupon hunting. Don’t forget to use a credit card with rewards perks and you can get savings at the checkout and future rewards from your credit card provider, if you play your cards right.

Too Much Temptation

If you find that the online messages and links are actually making you increase your spending, instead of your savings, you can opt-out of many of the coupon advertisements. Banks do offer “opt-out” programs for those that would rather not see the online coupons appearing in their statements. It may be a feature you can turn off and turn on at will, making it possible to time your coupons with when you have some disposable cash on hand. That way, you don’t have to permanently shut off a feature that can actually save you money when you most need it.