Help I'm Up to my Ears in Debt !

You have too much debt if:

• You always have problems paying off your credit card
• You are late paying off loans
• You regularly use your line of credit to "finance" basic expenses

You have already taken the first step, recognizing that you have too much debt.

When in doubt, make a budget ( the steps are outlined in Aprils posts) to determing how serious or minor your situation is. For minor problems, your bank advisor can help. For slightly more serious problems, the advisor may recommend stronger measures such as rescheduling payments or consolidating debt.

• Rescheduling Payments: rescheduling payments allows you to put off a payment until the end of a loan. However, with this comes the penalty of accrued interest and the principal taking longer to pay as it drops.
• Consolidating debts:Consolidating debts involves a financial institution combining some or all of your loans into one. This allows you to make one payment instead of several. Financial institutions that do assume the risk of consolidating debt are justified in giving a higher interest rate. Moreover, the advisor must be convinced that the debt-cycle is done.

If the problem is extremely serious, you must be completely honest with your advisor, it's in your and their best interest to be honest so that they can help you. Corrective measures may be suggested.

• Corrective Measures: If your institution agrees to help you, it may demand radical action such as cutting up credit cards and cancelling all lines of credit, The institution may ask a financially secure relative or friend to co-sign for you.

The last resort should be bankruptcy but this is not recommended as it will severly lower your credit rating and make it difficult for banks to loan money for 5 to 7 years.

11 Ways Women Can Find Greater Wealth

1. Don't Jeopardize your Future to Please Others Now: according to Suze Orman, jeapordizing financial security to help friends and family isn't only done by middle-income moms looking for ways to finance a wedding. There are many women who have admitted getting into financial trouble because of spending on others. Women must push aside the idea that to satisfy others they have to suffer. Taking care of yourself financially now will ensure your ability to take care of yourself and the people you love in the long run.
2. Don't Worry About What People Think: Orman says women face social pressure to take care of others not only at home but also in the corporate world. We are motivated by fear, fear of what others will think if we can't afford certain things.
3. Figure Out Your Life And Your Career Will Follow: Don't focus on the paycheque, Figure out what you love to do and pursue that, because It follows that when you do what you love, you will work more and the money will eventually come.
4. Don't Take The Easy Way Out: You may want to avoid confrontation but this will only leave you with more responsibility and pressure that you don't need.
5. Wish Others Well - Including The Competition: Don't be soo quick to think that just because another woman is successful it means there is less room for you. Why can't more than one person be successful at what they do. Take a different approach and welcome other women's success and wish them well.
6. Let The Dogs Yap: Ormans Advice, "Ladies, walk yourselves through all the opposition, all the negativity. Ladies, walk yourselved through all the competition and all those who say it can't be done. Take your power and keep on Walking.
7. Put money in your home and make a plan to pay off your mortgage as soon as possible
8. Take advantage of your 401(K) or RRSP
9. Come up with a little something on the side, if you've done everything you can set up a side account and invest in stocks, mutual funds, or bonds
10. Keep credit cards in check
11. Watch your spending
    

Ten Golden Rules of Investing

1. Don't be intimidated by the professionals. Small investors have been intimidated into believing that they don't stand a change of beating the market because it is dominated by the big professionals. The truth is, the amateur investor has a better chance than ever at succeeding today. The reason for this is that professionals have a mob mentality, they all act and think the same. The individual investor is able to think independently.
2. Look in Your own Backyard. As an investment strategy, hanging out at the mall is far better than taking a stockbroker's advice on faith or looking to the press for tips. Many of the biggest investment gainers of all time come from places where millions of people go all the time. It is important to note that your own backyard can also be the industry in which you work.
3. Don't buy something you can't illustrate with a crayon. This may sound odd but buy stocks in companies that make things you understand.
4. Make sure you have the stomack for stocks
5. Avoid hot stocks in hot industries. A great industry that's growing fast, attracts too much attention and competitors. It is important to look for great companies in cold growth industries that are consistent winners.
6. Don't get involved with more than you can handle
7. Don't try to predict the future, concentrate on what is actually happening with your company.
8. Avoid weekend worrying
9. Never invest in a company without first understanding its finances. Poor balance sheets lead to the biggest losers.
10. Don't expect too much too soon.

Spotlight on Giving !

I was reading my new issue of Pink Magazine and saw this not for profit that I think is amazing. It's business women helping women in regions of conflict and post-conflict build businesses to sustain their families and strengthen their ability to foster peace and bring about change.

Click and Listen to David Bach's Finish Rich Money Minute !

Using Excel to Figure out Payments, Savings and Other Financial Numbers

This is awesome. It's an online course thats 40-50 minutes and with it you get two lessons and two practice sessions, a short test at the end to make sure you learned something and a quick reference card that has all the formulas and steps. This is a fun and easy way to figure out your financial numbers and get yourself organized. Follow the picture to go to your lesson.

How Much Debt do You Really Have ?

Many People don't know how much debt they have and if they do their spouses may not. Pull out all of your bills and print out the chart below to see how much debt you really have. Once you know your total debt, you can start paying it down.

Track Your Debt !

Know Your Investment Objectives

One way to look at your investor profile and "Portfolio Mix" is to consider where you are on the investment time line cycle. There are four different stages that most of us pass through in our lifetime and as we pass through these stages our financial goals change and so does our approach to investing.

Top Five ways to get ahead Financially

Follow these five steps to get ahead financially no matter what your income level.

1. Switch to High-Yield Savings
2. Pay Yourself First
3. Secure Lower Interest Rates
4. Take the Full Company Match of Retirement Savings
5. Get a Raise

Investing Your Dollars

The Basics Continued ...

What to do With your Money:

There are many investment instruments to consider when choosing what to do with your money. One thing to consider when making an investment decision is the Risk-Return trade-off, certain investments are "safer" but these investments bring with them a lower return, where as "riskier" investments provide a higher return. Investments fall into three major categories that serve everyones needs:

• Cash and Cash Equivalents: Assets, which at any time can be made available (liquid). Some examples are savings accounts, treasury bills and money market mutual funds. This is the safest category but it also provides the lowest return.


• Fixed Income Investments: These usually provide a higher return than the previous category.They provide a source of regular investment income that stays the same over a given period. Examples are term deposits, GICS, bonds, and income mutual funds.


• Equity Investments: These assets grow in market value but don't necessarily pay out dividends. Examples are stocks and equity mutual funds. This is the riskiest category, particularly for short-term investments but it also has the potential for the highest rewards.

The type or mix of investments you choose depends largely on your investor profile, your time-frame for investing and your feeling about risk. It is for you to decide how much risk you are comfortable with and what return you are looking for.

Investment Options:

As an investor you can be a "lender" or "Owner":

• Lender: As a lender, you are effectively lending your money to an institution, such as a bank, government, or corporation in exchange for interest income paid at a specified rate and at a specified time. Lender investments are things like bonds, GICs and Treasury Bills. It is important to not also that in addition to interest income you are guaranteed the return of your original investment and that the investment can be sold before maturity.
• Owner: As an owner, you become a partial owner in the company you have invested in. As you own a portion of the company you receive income in the form of dividends ( a portion of the company's earnings). Money is made from two sources, dividends and capital appreciation (when you sell your investment you get more than what you paid for it). These investments are mostly stocks.

Cheap Frill !

Forget the spa try this ultimate at home pedicure.

Remove old polish, clip and file nails.

Apply cuticle cream.

Fill a bowl with warm water, a few of drops of dish soap and moisturizing oil* and soak feet for five minutes.

Use a body scrub to exfoliate your feet and toes. Rinse and dry. Tip: Take some extra time to buff your legs, too.

Wrap an orange stick (a stick of orangewood with tapered ends) in a small piece of cotton ball, dip in tea tree oil* and gently push back cuticles. Note: It’s important to remember that cuticles protect nails, so treat them well! It’s not a good idea to cut cuticles as this can lead to hangnails and infections.

Massage feet with a rich cream.

Dip a cotton ball in polish remover and thoroughly remove all oil and cream from nails.

Wind tissue between your toes to separate them.

Apply basecoat and two coats of polish, waiting a minute or two between coats.

Drag a bit of polish over the edge of the nail to protect the tips.

Finish with a clear topcoat.

Dip your orange stick or a cotton swab in remover and use to touch up mistakes.
When nails are dry, apply moisturizing oil at the base of each cuticle.

*Oils: For moisturizing, you can purchase cuticle oil from a salon ordrugstore, but you can also use baby oil, almond oil or olive oil. Tea tree oilis an essential oil that acts as a soothing, natural antiseptic.

The Adventures of FruGal " Living Life one Dime at a Time"

Part of being financially sound in addition to money management is being able to enjoy your life. You can splurge once in a while but in the mean time you don't have to deprive yourself to save money. I'll show you easy entertaining and fun diversions that don't require a lot of money, just some time and creativity.

My first fun thing or at least I think it's fun is a quick recipie for no nut granola that I found on the website of Domino magazine. You can buy this stuff at a fancy store or try this recipie and have a health snack.

The Ingredients:

4 cups oats
1 cup pitted dates, chopped
½ cup candied ginger, finely minced
½ cup brown sugar
½ tsp. salt
¼ tsp. cinnamon
¼ cup canola oil
¼ cup honey
2 Tbsp. sugar
2 tsp. vanilla

Preheat oven to 350 degrees. Combine the oats, dates, ginger, brown sugar, salt and cinnamon in a large mixing bowl and stir to combine. In another mixing bowl, whisk together the oil, honey, sugar and vanilla. Add to the dry mix and stir until well blended. On a greased baking sheet spread the granola mixture evenly. Bake for 25 minutes, stirring a few times to ensure even baking. Let cool in the pan. Store in an airtight container for up to 2 weeks.

Will You Retire or "Rewire"

Pink Magazine is asking women if when it's time to retire, they actually plan to fully retire. Take the Poll.

It's never to early to start thinking about retirement and securing your financial future.

Investing Your Dollars

Everyone works hard for their money and as such we all want to see and make our money work for us. There are so many options and it can get confusing so here is some help.

The Basics:

Goals and Dreams

Most of us have goals and dreams for our future, which requires being smart with our money today, and thinking about financial planning and smart investing. An investment is simply a vehicle in which you put your money to get a return or profit. Typical investments are stocks, bonds, GICs and mutual funds.

The Magic of Compounding:

Compounding helps your money grow even faster, compounding simply means earning income on your income. You are earning income not only on your principal but on interest. look at this chart to show that shows the effects of compounding to ensure your understanding.

Debt Diet Challenge

I am extending Oprah's Deb Diet Challenge not just to Americans but also To Canadians. It is time to get a handle on your debt and your financial future. First Step Sign the deb diet contract as a promise to yourself.

Cool Tools: Savings Calculators !

I've been talking a lot about savings so here are some savings calculators to help with creating a savings plan.

1. What will it take to become a millionaire?
2. How much will my Savings be Worth?
3. What will it take to Save for a Vehicle, home ...?
4. What will it take to Save for a College Education?
5. How will Taxes and Inflation affect my Savings?
6. How much of a difference will the rate make?
7. What's it Worth to Reduce my Spending?
8. How Much at What Rate, When?

Top 5 Ways to Dump Debt !

Follow these five steps to slash your debt and improve your credit score:

1. Lower your Debt Ratio
2. Attack the Cards that don't Report Credit Limits
3. Kncok off the Mini-Balances
4. "Re-Age" Delinquent Accounts
5. Build an Emergency Fund

In addition to these five steps, check out a few more ways to eliminate debt from InCharge Debt solutions. This site also offers some debt calculators.

Must See TV !!

I just found out that you can catch Canada's Premier personal finance show, "Money Talk", hosted by Patricia Lovett-Reid, senior vice-president of TD Waterhouse on line (Full episodes).

Follow Pattie's Head to see episodes

"Meet the Millennials"

I just finished looking over this article on my generation the "Millennials". It talks about this generations sense of entitlement and how they differ from the baby boomer generation of employers. Read this article from AOL money to learn more.

Cheap Frill !

Need a pick me up but don't want to spend a ton of money for a one time spa treatment or a bunch of beauty products, Follow the steps and recipies from this article from Marth Stewart.com



Weekend Revival: Spa Treatments


Simple, natural beauty treatments using Ayurvedic ingredients will promote balance and serenity during your retreat. Each morning after breakfast, spend some time caring for your skin and body. You may choose to do all of these treatments, or just one or two.

Saturday:
Face and Body Ubtan Scrub
This invigorating "ubtan" ("cleansing paste") scrub improves circulation and help tone slack muscles. In a large bowl, combine 1 cup oat or chickpea (garbanzo) flour, 1/2 teaspoon ground turmeric, 2 tablespoons each ground mustard and crushed fresh coriander leaves, 3 tablespoons rose water, 1 cup orange juice, and 1/2 cup water; stir to blend. Work the scrub all over your face and body. Rinse with warm water.

Herbal Steam
This is a great treatment to eliminate toxins. Steam your face over a bowl of hot water combined with a handful each of fresh cilantro and basil leaves, steaming for about 10 minutes. Hold your face at least 12 inches above the water and tent your head and the bowl with a towel to prevent the steam from escaping. Pat your face dry and splash with tepid water to refresh the skin. Discard the herbs. To purify the rest of the body, run a hot shower to fill the room with steam, and relax in the steam for seven to 10 minutes.

Lepa Mask
"Lepa" translates as "medicinal plaster." This mask absorbs impurities. In a large bowl, combine 2 teaspoons each sandalwood powder, natural clay powder (available at natural-foods stores), a pinch of ground turmeric, 1 teaspoon neem oil, and 1/4 cup fresh orange juice. Mix thoroughly and apply all over the face and neck, avoiding the eyes. Leave the mask on for about 15 minutes. Rinse with warm water.

Moisturizer
Aloe is an ideal ingredient in pitta-balancing skin treatments because it provides light moisture and creates a wonderful soothing sensation. Massage your face and body with aloe vera gel to soften and refresh your skin.

Sunday:
Coconut and Flower Hair Oil
Oiling your hair is the most important part of Ayurvedic hair care. It conditions the hair and scalp and promotes relaxation. Prepare the oil the night before by bringing 1/2 cup coconut oil to a boil. Add 2 tablespoons rose water and 1/2 cup mixed fresh flower petals such as rose or jasmine. Return to a boil and cook for 3 minutes. Remove from the heat. Let the flowers steep in the oil overnight, then strain the oil through a coffee filter or double layer of cheesecloth into an airtight container. To oil your hair, gently massage four to five tablespoons of the oil onto the crown of your head and into your scalp. Wrap hair in a towel and allow the oils to penetrate for at least 20 minutes. Shampoo and rinse as usual.

Nourishing Hair Mask
A protein-rich mask helps to strengthen hair. In a medium-sized bowl, thoroughly combine 1/2 cup yogurt, 1 tablespoon lemon juice, and 1 egg. Apply the mixture to your scalp after oiling and cleansing. Leave the mask on for about 20 minutes, then rinse thoroughly with warm water.

Hand and Foot Treatment
To soften rough hands and feet, start by gently massaging them with a loofah or rough hand towel. Next, soak them in a tub of warm water infused with a few drops of sandalwood, rose, neem, or jasmine oils. Use a pumice stone to soften rough areas on the feet. To moisturize, make a solution of 1 teaspoon neem oil and 2 tablespoons coconut oil and massage into both hands and feet, focusing on the heels, soles, ankles, between the toes and fingers, wrists, and palms. Rinse with the juice of one lemon diluted in 1 cup warm water. Dry off with a soft, fluffy towel.

No One's a Know it All

As a self-admitted perfectionist ( who doesn't want to be) This article by Lindsay Pollack really struck a chord. So here it is:

"Attention fellow overachieving perfectionists: No one expects you to know everything.

There is no way that you can have the answers to absolutely all of the questions you’ll face throughout your career. And even if you could, with the speed of life today, new dilemmas are popping up all the time. Plus, every industry has different rules and protocols and every region of the country has its own set of standard practices. With so much variation, how can you make sure you’re doing the right thing in any given situation?

When in doubt, ask.

There is no situation too small to ask a few trusted friends or advisers for guidance or reassurance. Not sure whether that blouse you’re planning to wear to a job interview is a little too low-cut? Try it on for a few people and ask for their honest opinions. Concerned that a networking email you’re writing may not be properly worded? Send it to a few reliable friends or colleagues (or fellow DWC members!) for approval and editing before you send it to your contact.

Taking just a few minutes or hours to get more feedback and advice can mean the difference between winning and losing an opportunity. And you’ll hear feedback from a friendly source rather than a boss or customer.

Whether you're starting a business, looking for a new job or attempting to balance work and family, there will be lots of decisions you can’t make on your own, and situations in which you can’t know the right answer without asking someone with more experience, more savvy or more chutzpah."

When in doubt, ask. The world is your focus group.
- Lindsey Pollak

Flexible Freedom

Here is something to think about - Each of us are responsible for our own flexible freedom. According to Tory Johnson, CEO of Women for Hire and workplace contributor on Good Morning America, Here's How:

1. Work Life Balance is Bunk: Having a perfectly balanced life is an unrealistic standard for most people. There will always be trade-offs and compromises to be made. Don't be so hard on yourself, lighten up and let things fall into place.
2. Force the issue of Flexibility:If your place of employment doesn't offer a formal flex program, be a trailblazer and speak up to start one. Work with your employer to create a trial program with specific benchmarks for communication.
3. Think Creatively about Flextime:True Flextime comes in all different forms to suit each unique individual. There's working from home, compressed schedules, job sharing, and part-time schedules. Pick a plan that works best for you.
4. Focus on Performance: Flexible work arrangements are accomodations, not entitlements. Strong performers are much more likely to have their personal needs met than slackers.

FinanciELLE of the Moment: Mary Kennedy Thompson

Mary Kennedy Thompson, 43, former logistics officer for the Marine Corps, former Cookie franchise owner, current owner of two Mr. rooter franchises. Mary is able to jump into any business without experience and make it work, which is something we can all learn from. Learn more about this franchise favourite from the Pink Magazine article "Ms. Rooter".

The Savers : Natalie and Greg Turner

Natalie, 27, and Greg, 28 are an exceptional example of what good saving habits can do for your financial freedom and future. This CNN Money article "Good habits are hard to break" should be read by anyone who wants to learn how to save more money and needs a little inspiration.

Cool Tools: Budgeting Calculators

Need help budgeting, look no further:

1. How much am I spending?
2. Should I pay off debt or invest in Savings?
3. What will it Take to Pay my Balance?
4. How much Should I set Aside for Emergencies?
5. What's it worth to Reduce my Spending?

Top 5 Financial Resoultions !

Here is a list of 5 financial resoultions from Smart Money to Ensure your year is on the right financial foot.

1. Save for Retirement
2. Create Emergency Fund
3. Slash Energy Bills
4. Cut Credit Card Debt
5. Lower Monthly Budget

Saving Challenge: Save $5,000 in a Year !

Task 1: Determine how much you can save each month.Savers are, in general, happier people. They feel more secure because they not only have enough money to bail themselves out of a jam, but they are also doing something positive for their future. Financial advisers, unfortunately, often draw a random line in the sand and advocate saving 10 percent of whatever it is you make. Problem is, it's much too difficult for most people to start there, particularly if they're saving for the very first time. If the bar is set too high, set it lower. Try 3 percent. If that's easy enough, try 5 percent.

If you haven't already, track your spending and saving. Write down everything you spend money on for a solid month, using this spending tracker.

Task 2: Set up an automatic savings account.What if, as you find all this money, you suddenly feel flush, and instead of saving, you find yourself spending? The key to conquering the urge to splurge is to keep your money out of your hot little hands. Give your bank the power and permission to move some money every month or every payday out of your checking account, where you're likely to spend it, and into savings, where—from now on—you're going to tell yourself it's hands off.

Task 3: Establish direct deposit.Most employers will automatically deposit your paycheck into the bank account of your choosing. You can even split it between checking and savings! All you need to do is fill out a simple form and you'll avoid long bank lines and paperwork. The bonus: Your money will show up in your account faster than if you had waited for the check to clear.

Task 4: Automate your bill payment.Just as you can elect to have money funneled into your savings automatically, you can elect to have bills paid automatically by your bank. This system means less check writing, less stamp buying, spending less time schlepping to the bank and—most importantly—fewer late payments that can sabotage your credit score. It makes the most sense to automate the bills that will be for the same amount every month so that you don't come up short: mortgage or rent, student loans (you'll get a deduction on the interest rates by electing auto bill pay), health club, insurance and so forth.

Task 5: Give your savings a bonus.Every time a little extra money comes your way, earmark all or at least part of it for savings. This is one of the best ways you can give yourself a financial boost.Where is this extra money going to come from? Here are a few ideas:

Tax refunds: Deposit refund checks straight into savings. It's found money. Or, better yet, check with your payroll department to see if those refunds are coming because you're withholding more than you need to. If you are, withhold less and put the extra cash from each paycheck into savings so some of that money is earning interest all year.

Your bonus: You may have been counting on some of your bonus to cover expenses, but be sure to sock a generous percentage of it away into your savings.

Paid-off credit cards or other loans: Your car is paid off? Fantastic. The $359 (or whatever) you were paying to the car lender should go straight into your savings. A few transactions like this and your savings balance will soar!

Your next raise: You've already been living on the money you're making now. Pretend you didn't even get a raise, and automatically bank the difference in your savings account.

Five Steps to Saving More

If you need money to reach your financial goals, and we all do. There are only two ways to do it, spend less or save more.

Five Steps to Saving More

Step 1: Eyes on the Prize

know what you are saving for and how much it costs.

Step 2: Know what's coming in

Whatever amount you are trying to save, it's helpful to know what's coming in, this means using some kind of record keeping system whether financial software or penci & paper.

Step 3: Know what's Going Out

The post on Budgeting will be extremely helpful for steps 2 & 3 as will the spending tracker worksheet.

Step 4: Make Changes

Once you know what's coming in and going out, you need to make changes to ensure you are living within your means. For example, you can curb your spending on eating out and instead bring leftovers in your lunch.

Here are the percentages of your take home (net) pay that Finance Guru Jean Chatzky says you should funnel into various expense categories.

Housing: including the cost of living there, taxes, insurance, utilities, and repairs 35%

Transportation: including gas, insurance, and maintenance 15%

Debt Repayment: not including house & car payments 15%

Living: clothing, food, charitable donations, entertainment, gifts, travel, etc. 25%

Saving: 10%

Step 5: Automate to Force your own Hand

Once you figure out what you have left, save the money you're not spending. The very best way to save - talk to your bank about moving some money out of chequing and into savings automatically each pay period.

Discussion Question: Saving Money

How do you feel about how you're managing your savings today?