Finance 101: How To Stay Debt Free In Today's Economy

Having some level of debt is common in today's society. However, you don't have to let debt consume you. What are some things that you can do to stay out of debt and put your money to good use? Let's take a look at how you can live without a large credit card balance or expensive monthly payments:

Rent Instead of Buy

When you acquire something, you need to consider the total cost of ownership. While renting a house may appear to be more expensive than buying a house, you have to consider the additional utility costs as well as taxes and mortgage interest. Whether you are looking at homes, cars, home tools or more, renting could save a lot more money than buying.

Buy Used Instead of New

Buying items that are used can allow you to buy something nice without paying full retail for it. For example, buying a 2012 car in 2014 may be the better deal because it won't depreciate as much. When you buy clothes or shoes at a thrift shop, you can pay pennies on the dollar for the latest fashions. Most items won't give you any problems if they are gently used, but it will save your wallet a lot of extra money. 

Save Money Ahead of Time

Instead of financing 100 percent of the purchase price, try to save up as much as possible. Having equity in your asset makes it easier to sell it if you can no longer afford to make payments on it. 

Keep Your Credit In Good Standing

Those who have good credit will pay less in interest charges than those who have bad credit. Borrowing $100 at 10 percent interest means that you pay $110, while you would pay $130 at 30 percent interest. Over a larger scale, that savings adds up. 

Create a Budget That You Can Stick With

Make sure that you create a budget for your monthly and yearly spending. It will keep you within your means and ensure that you don't deplete your savings and rely on credit cards to pay bills. While you may want to be strict with your budget, it's important to still be realistic so you can meet your financial goals.

Resist the Urge to Upgrade

Driving your car for as long as possible after it is paid off enables you to avoid a car payment. Keeping your current TV allows you to save $500 or more that you can put in the bank or use for an emergency situation. If your items are still working, wait until you save more money to upgrade.

If you want to stay debt-free, you have to be willing to make some sacrifices to stay within your budget. If you feel overwhelmed with debt, it's important to talk to professionals who can help. Staying debt free is very possible, and following these tips will help get you started on having better control of your finances.

Informational credit to A C Waring & Associates Inc.

Don't Sell: 7 Items that Will Cost You More Money in the Long Run If You Sell

When in a financial crunch, you may be tempted to sell many of your belongings to come up with some quick cash. While you can make some decent money doing this, it is not always a good idea. Selling certain items may end up costing you more in the long run, like these examples:

Heirlooms

While it is true that possessions aren't everything, they’re still important. Don’t sell your family heirlooms. You want to have something you can pass on to your children to continue your family’s legacy. Chances are, the you will be selling your family heirloom for much less than you think it is worth. Consider selling other items items instead like collectibles that don't have a special meaning to your family, but could to someone else. 

Furniture

Old furniture is unlikely to sell for much. However, it's hard to justify living without a bed or table, and replacing furniture can be very expensive. If you need some space, consider renting a storage unit to hold that furniture until you have room for it again. You can find storage units of all sizes and prices to meet your needs and save you money in the long run, says the professionals at The Self Storage Space.

Old Currency

You may have some old coins or bills in your possession. If this is the case, don’t sell this old currency immediately. Hold onto it until you can get a legitimate collector to examine it. Never sell collectible currency for face value, since it could be worth much more.

DVD Collection

While it may be tempting to get rid of your film collection on DVD and Blu-ray, you will only receive an incredibly tiny fraction of what you originally paid. Better yet, watching movies you have already invested in is far cheaper than going to the theater. If you want to make a better profit, consider selling your old electronics. Even outdated and broken electronics are valuable to many people who plan to use parts or fix it up.

Your Car

While it may seem like you can make a lot of money from selling your car, it is a risky move. Cars depreciate in value quickly, and purchasing a new car is an expense you probably don’t want. Even though you can buy used cars in the future, you will never know if it has hidden problems that could be expensive to fix. Spending the money to take care of your current car to keep it running for a long time will save a lot more in the end. 

Stocks

Never sell stocks simply because you need quick cash. Only sell them when the market is up and you’ll make a return on your investment. Selling stocks at a loss misses the point of investing in them in the first place.

Your House

Moving out of a house and into an apartment is something many people do. However, this can be a bad decision in the long term. While a mortgage is expensive for the short term, it is certainly a lot less expensive and stressful than paying rent for the rest of your life. Only sell when you are ready to move and feel like you can make a profit, not because you want your monthly bills to change.

Looking for ways to earn some extra cash can be difficult. However, be careful about what you sell. You may end up losing more than you bargained for. Look for easily replaceable items to sell first. Having a garage sale for things like clothing, books, toys, baby and pet items, games and old jewelry are a great way to earn a little extra cash without having to spend a lot to replace them. 

Tired of Gas Prices? 5 Tips for Ditching Your Car and Still Getting Around

Gas prices have almost tripled since 2002, causing many people to ditch their cars to save money. Leaving car ownership behind is easier when you have confidence you can still get around. Good news - you can survive without a car, even if you don't live in a major urban area. Here's five tips to help you get started.

1. Use Public Transportation

A handful of cities are known for such excellent public transportation systems that having a car is an anomaly instead of a requirement. But most cities have some public transportation. Consider buses, trains, trollies and even publicly available bicycles.

Scheduling your day around public transportation can take some adjustment. Research makes the transition easier. Look up routes, print out a list of exchanges and times and program the customer service number into your phone for quick information.

While taxis aren’t as cheap, they can definitely do in a pinch when you need to get from point A to point B very quickly. A taxi service in Naples might be just the thing for you, and you always want to make sure you get a ride from a trusted company, like Southwest Florida Transportation Group, Inc. Don’t just hop into any old yellow car and hope it’s a taxi!

2. Walk or Bike

What's a great way to learn more about your city, get some exercise and save on gas? Using your own two feet as your primary mode of transportation. Walking is free and even investing in a good bicycle pays for itself in a couple months of saved gas bills.

Living in a central location that allows you access to frequent destinations may be more expensive than other housing options. Keep in mind the money you're saving without a car payment, gas bills and car insurance when making your budget. 

3. Reduce Your Trips

Without a car, you learn to consolidate trips. Not running out for fast food may be inconvenient at first, but you'll be saving even more money in the long run. Whenever you need to go out to the store or run other errands, plan ahead. If you need to go to the grocery store or if you need to go get your haircut, go to the grocery store last. This will allow you to take care of all of your other tasks without letting any of your food going bad and it will prevent you from having to go back to the grocery store later. It will also give you time to think if you need to add any more items you need to get at the grocery store to your list. This will help you avoid the risks of going back later because you forgot an important item. Work ahead to avoid unnecessary trips. Plan out your week's meals and shop for everything you'll need at once. Odds are, you'll eat healthier, too.

4. Buy an Alternate Motorized Vehicle

Electric bikes, mopeds, scooters and motorcycles are growing in popularity as gas prices rise. They are the best of both worlds - you can travel long distances in short amounts of time and use less gas than traditional cars. A bonus is that many options don't require insurance.

5. Car Sharing for Special Trips

No matter how satisfied you are with your car-free life, there will come a time when you simply need a car. In those situations, consider a car-sharing program. City Car Share, i-Go, FlexCar, ZipCar and Lyft are just a handful of the options available. Some research will help you find the best car-share program for you.

Getting Close To Retirement? 4 Things To Remember As You Get Closer To The Golden Years

If you are approaching retirement, you will want to take the time to understand your goals and where you stand. Otherwise, if you head to retirement without thinking about your future, you will face serious issues. With this in mind, here are four things to remember as you approach your golden years.

Lawyer:

Once you amass some wealth, you will want to protect it. To do so, talk to a lawyer who can set up your finances in an intelligent and thoughtful manner. Otherwise, if you have a 401k, pension or other financial product, you will fear problems if you commit any mistakes. Not only that, with an attorney, you can maximize your social security payouts as he or she can come up with the best withdrawal solution for your needs. While a lawyer will cost money, he or she will have you enough in the long run that you will have no trouble justifying this minor expense. Rogers Bussey Lawyers are lawyers in Newfoundland, and a good example of a firm that could help you through this transition in life. 

Health care:

Believe it or not, if you retire without health care, you are putting your net worth at risk. While you can usually use government sponsored plans by the time you reach 65, you will need to think about your needs before you reach that age. Not only that, you will also want to consider supplemental plans, especially if you suffer from any ailments. Either way, when you take care of this at a younger age, you will avoid issues should you fall ill.

Home:

Let’s face it, if you raised a family in a large home, during your retirement, you will not need the room. In reality, you need to consider selling your house as you can move to a lower cost of living area. Other times, if you want to remain in the area, you can downsize to a condo or smaller home. Either way, unless you want to stay in a large house and pay to heat and cool it, you need to consider downsizing.

Will:

If you have some assets, you will probably want a will. Not only that, if you are a parent and want to pass down money to your kids, you will want to set up a will. With a lawyer on your side, you can create this quickly.

When you prepare for retirement, you will have an easier time as won’t need to worry about losing out on the best time of your life. Remember, if you don’t prepare, you will struggle when you are older.