Debt Free Faster
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Debt Free Faster
How to be debt free faster? What you should or shouldn't do to make your debt free faster.
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Why a budget is a tool and not a financial prison - by Cody Hodge - Helium

Why a budget is a tool and not a financial prison - by Cody Hodge - Helium | Debt Free Faster | Scoop.it
Any good household is going to make a budget.

 

I hated budget, it just didn't fit my personality. I was against it also because my husband used to tell me his friends' stories about being "prisoned" by budgetting. I'd like to have freedom to spend my money. Actually, I always have an idea how much I spend every month, not in accurate dollars, but approximately.

But after reading Cody Hodge's article "Why a budget is a tool and not a financial prison", I started to realize that good budgetting provides real financial freedom. It's part of your financial plan. Just like a map, it will guide you to your financial freedom dreams rather than cage you or punish you. The point is you need a budget which fits your lifestyle, otherwise, you won't stick to it.

Budgetting is a good start point of the whole family's financial plan. With a good budget, you should get a clear picture of your spending habit, knowing where you money comes and goes, and how much you can save every month. Based on your budget, you can plan for pre-payment for your mortgage/debt, save for your kids education, invest for your retirement, puchase protection for you and your family, or to plan for your career/job change to make more money. It's almost impossible for a financial planner to help you make a reasonable financial plan without looking at your budget. Because you just can not stick with your financial plan without knowing how much you are going to spend every month.

If you feel you are not at budgetting, start with approximate numbers. Such as using $10 or $50 scale in your budget, not $1. For example, if you have the idea how much you spend on clothing every month, you can just give it $120 - $130 (on $10 scale), or $250 - $300 (on $50 scale), no need to refine the number of the last digit. Of course, this way isn't very accurate. But you still can have very good control. Of course, the more accurate your budget is, the better control you have.

You can download a "Personal Budget Worksheet" here. 

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Mortgage trends from a mortgage professional - Dominion Lending

Mortgage trends from a mortgage professional - Dominion Lending | Debt Free Faster | Scoop.it
Personal blog page discussing trends, news, and more about the mortgage industry!

This blog has very good information on traditional mortgage. Interesting to see that 83% of Canadians have at least 25% equity in their home.

 

Have you thought of following questions?

1) How do you take this advantage to pay off your mortgage faster and create flexibility for your future financial plan?

2) If you want to pay off your mortgage faster, should you take 20 years mortgage or 25/30 years mortgage? Why?

3) If you have steady income and you are a very disciplined money spender, will make pre-payment to your traditional mortgage get out of deft faster than using HELOC (Home Equity Lione of Credit)?

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Payday Loan Debt Collection, try to avoid it!

Payday Loan Debt Collection, try to avoid it! | Debt Free Faster | Scoop.it
Payday Loan Debt Collection : We offer a fast, easy and hassle-free cash advance online. Payday Loans Online, No Fax Cash Advance here. We are the direct online loan company helping you get the cash you need fast.

 

Have you seen this before? There are lots of places on street offer your quick payday loan. I guess if you really need money that quick and have no time to get approval from your lender, it might be your only choice.

But don't use it for long. The interest you pay is very high on those loans. It's better you plan for your future financial flexibility when everything goes well. You may not think of apply for a LOC (line of credit) or HELOC (home equalty line of credit) from a lender when you have good steady income. But that's the time you can easily get one. LOC or HELOC provide way more flexibility for you when things don't go well, such as being laid off, need money for emergency or need money to start a new business.

So go get a LOC or HELOC when you are still in good financial condition. It can be your financial cushion for the unexpected "snow days" to come.

I highly recommend you take a look of Manual Life One, a new banking concept provided by the biggest insurance company in Canada (Yes, not your bank).

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