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How to Celebrate Valentine’s Day on a Budget

How to Celebrate Valentine’s Day on a Budget

When you decide to take control of your finances and stick to a budget, special events like Valentine’s Day might make you nervous. A holiday that is infamous for lavish gifts and pulling out all the stops for the one you love surely doesn’t have a place in your budget, right? If you’ve been one to go all out on Valentine’s Day in the past, it might seem impossible to enjoy it when your finances are restricted. Of course if you’re using Valentine’s Day to propose or do want to go the extra mile for someone special, you can still do so without going into debt. But if you follow these steps and get a little creative, you can still enjoy a romantic Valentine’s Day without breaking the bank and without coming off cheap. Dinner & Movie Variations The cost of movie tickets and concessions in addition to a nice dinner bill can leave a pretty big dent in your bank account at the end of the day. So instead of going with the stereotypical date, switch it up and host your own dinner and a movie. Making your own meal doesn’t have to be difficult to be nice; simply find a recipe for some delicious chicken paired with some pasta, make a simple salad and find a nice, affordable bottle of wine and call it good. Your date will be impressed with your creativity and your cooking skills. And the privacy of your own home might allow for deeper conversation than surrounded by your fellow movie-goers. Road trip Often the best memories are created when we least expect...
5 Top Reasons People Stay in Debt

5 Top Reasons People Stay in Debt

Accruing debt may seem like a necessary and inevitable part of life, but staying in debt does not have to be a lifelong burden. Unfortunately for many people, once they adopt a lifestyle out of their means by going into debt, they have a hard time getting back out of debt. Here are five of the top reasons that people stay in debt and how to avoid them. 1. Complacency Humans are creatures of habit, and once we get comfortable with something it can be hard to change. We may become so used to the routine of charging our expenses, anxiously awaiting payday, nervously checking our bank account, transferring balances around to make it work, etc. that we can’t imagine managing our finances any other way. To step outside of your comfort zone, make a list of things you regularly purchase with credit and highlight those you could do without. 2. Insecurity When your identity is tied into your possessions, letting go of them or downgrading can be a crisis of self. From expensive cars to regular lavish dinners and exotic vacations, keeping up with appearances can become a way of life that is too difficult for many to shake. The sad truth is that a lifestyle lived out of your means is not sustainable, and can abruptly end in bankruptcy, repossession, and other devastating losses. Take an inventory of your most valued possessions and evaluate why you cherish them so much. If it’s simply because of their monetary worth, perhaps it’s time for some soul-searching to improve your self-confidence and financial situation simultaneously. 3. Stubbornness Getting out of debt...
5 Characteristics of Financially Responsible People

5 Characteristics of Financially Responsible People

Plenty of people are consistently motivated to make more money, but perhaps a more important goal for all is to actually hang on to that money. While it’s true that your income is a necessary tool for building wealth and eliminating debt, income is only part of the equation. Financial stability is accomplished by saving and managing money, not simply by making more money. Earning a six-figure income won’t help you get out of debt and build wealth if you can’t seem to keep any of your earnings. Regardless of income, there are some common characteristics shared by all who are financially responsible. If you focus on strengthening these traits in yourself, you will find an added measure of financial success regardless of your income or current financial situation. 1. Detail-oriented Financially responsible and secure people know their numbers. They know their account balances almost to the dollar, and track every penny that comes in or goes out. They know their debt, they know their credit score, and they know their budget. They check and balance their accounts daily to ensure nothing is out of line. This is how they avoid making purchases they can’t afford and living within their means. 2. Patient You won’t find the “I want what I want, when I want it” attitude among the financially responsible crowd. These people can walk past an appealing purchase if they don’t have the immediate funds for it. They create a savings plan if they do have a big purchase ahead, but they know that impulsive behavior leads to trouble, usually in the form of debt. Patience and self-control...
Department Store Credit Cards: What You Should Know

Department Store Credit Cards: What You Should Know

When you’re about to make a significant purchase, the offer, “would you like to save 20 percent on your purchase today?” can be very tempting. Of course we all know what this means: opening a store credit card. Is the savings on your purchase worth the cost of the credit card? Here are some things to consider when you’re faced with the option of opening a department store credit card: They have higher interest rates Store credit cards have an average interest rate of 23 percent, compared to 15 percent for other credit cards. If you’re not one to pay off the balance of your credit cards each month then your purchases are actually costing you more. If you were to make the monthly payments on a $1000 balance from a store credit card, and the interest rate were 23 percent, you would end up paying $838 in interest, assuming you were making only the minimum payments. This makes any potential discount offered by the store not worth it. More temptation to spend Several store cards have terms that require you to spend a minimum amount in the store before you receive a rebate or incentive. This may tempt you to spend more than you usually would just to qualify for the savings. While you may get 5 percent cash back on that $500, you still spent $500 more than you normally would have. Only useful if used If you opt for a card from a big retailer, such as Walmart or Target, you may see some benefits from having the store credit card. If you are able to...
How to Write a Credit Dispute Letter to Repair Your Credit

How to Write a Credit Dispute Letter to Repair Your Credit

If you know your credit rights, you’ll know that you have the right to dispute any incorrect or erroneous items on your credit report. The three major credit reporting companies are required by law to investigate all claims you make, at no cost to you; all you need to do is request they do so in writing. That’s where a credit dispute letter comes in. An Effective Credit Dispute Letter in 6 Easy Steps All three major credit bureaus now allow you to file credit disputes online, making the process of correcting your credit report simpler and quicker. However you may feel more comfortable stating your corrections in writing and in your own words, where you won’t have to agree to any confusing “terms of agreement” that could put limits on your ability to successfully file a claim. Additionally, writing a physical letter allows you to keep a copy for your records, which could prove valuable in the future. You don’t need to be a professional writer or have a law degree to write an effective credit dispute letter. As long as you write clearly and back up your claims, don’t worry about adding anything else. You can hand write the letter, but your writing should be legible; if you’re not confident in your hand writing, go with a typed letter. (Click Here for our Credit Dispute Letter Template) Step 1: Start with your info At the top of your letter, start with your basic info. Put the date, your name, and a current address. It may also be beneficial to include the last four digits of your social security number. Step 2: Write the...
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