We've all seen the commercials for credit card companies: Well meaning parents give a credit card to a college student for "emergencies," and either while showing up for an impromptu visit or getting a
heart-stopping bill find out the card has been "maxed out."
While shopping, at church and eating in fast-food places I have heard children and teenagers ask, plead for and beg their parents for credit cards. "I'll only use it in an emergency!" yeah. Seldom have I heard a parent ask the interesting question: "Exactly what do you consider an 'emergency?'" The answer might come as a surprise.
A few years ago I did a survey of teens in my church, then sat down with their parents with the results. These folks were getting hit with the "I need a credit card" petition. Amazingly, the top answers were not: paying for a tow when the car breaks down, an emergency gas-tank fill up, missing the last bus and needing a taxi or anything an adult would choose. The top answers turned out to be: dinner at the mall perhaps including friends, clothes, food delivery for parties and other non-emergency items.
I wondered who these teens were. I thought I knew them, having watched them grow up from birth. Did some metamorphosis take place and turn them into different people? I thought they had sense.
Speaking with them and their parents, one theme presented itself: the perception of credit cards as opposed to reality. Small wonder. Media ads everywhere give the impression anything can be had by using plastic. And had now. No mention is made of the reality that shows up in a month: the bill. No matter, the payment is miniscule, just make that.
Using one parent's credit card bill, I pointed out the credit limit- a high figure- $1,500. Some of the teens cheered. But wait-there's more. Moving down the bill, the monthly payment was only $45 a month. Teens cheered. But wait-there's more. Continuing down the bill, I pointed out the principal (the amount actually applied to the whole balance due) being paid was a paltry $9.52 on a balance of $1,257.85. No one cheered.
Credit card companies are there to make money. Period. They are NOT going to help anyone pay the card off and get out of debt. They make the majority of their money on the interest payments (the majority of that
"minimum" payment) and on late fees. They have no incentive at all to helping anyone but themselves.
I finally had the teens attention. Up until that moment, the meeting had been treated like a joke. "I'll get a job and pay it off myself," "All I have to do is make the minimum payment, right? No problem." The question was asked: What do we do?
Until the United States Congress convinces credit card companies to raise the minimum payments to at least 10 percent of the balance and add interest to that amount, those swimming in credit card debt could drown. Instead of waiting, I offered the following advice:
Before using a credit card, look at the interest rate. For example, if a card has a 20 percent interest rate, add a zero to it. Two hundred percent is what you'll pay back by making the minimum payments only. That means for a $20 pair of jeans, not only paying back the $20, but nearly an additional $40 in interest. Or before each use of the card, sitting down on paper and using the math formula I=PRT. Interest= Principal multiplied by the Rate multiplied by Time. The formula comes very close to the same amount. No one seemed willing to pay $60 for a $20 pair of jeans.
I had credit card debt until I paid off my last card 2 years ago by taking the bill and adding a payment of 10 percent of the balance to the existing "minimum payment." I saw the balance start to drop dramatically. When I could afford more, I paid more. On the glorious day of zero balance, I cut the card into little pieces and sent it in with the last payment. I patted myself on the back, bragged to friends at work and was proud of myself.
Now that I had that monthly payment still in my budget, what to do? There are all kinds of offers for "pre-paid" credit cards. I suggest reading all the print, fine and otherwise. You give them your money,
then use the card to spend only the amount you've paid in. If you don't use the card, the amount builds up. Who gets the interest on that account? Not you. The credit card issuer gets that interest, along with any other fees for "managing" the account, processing the purchases, etc. That didn't sit well with me. The whole idea of paying off credit cards is to have more money, not give it to someone else.
I solved the problem easily by going to my credit union and opening a second checking account. This account has a debit card with a credit card logo on it. It can be used as a debit card or as a credit card. I simply make the payments to that account that I was making to a credit card company. And who gets the interest on the account? ME. I manage the account, track the purchases, everything.
The parents and teens both realized this solution is not only feasible, but easy to do. A teen can build financial responsibility by getting "that job" and depositing some or all of their money in the account. A college-bound student has the "allowance" their parents deposit. They can only spend what they have, no more. Emergency account? Save money in the savings account and both parties sit down and if necessary, write down what is a true emergency. I suggested parents may want to impose a penalty for misusing the "emergency savings."
I was asked about younger children. How do they not lose their heads in a "plastic world?" With a family of children I that I used to watch, I asked the parents if I could try an experiment in money management training after a trip to the store. I would give each child an allowance. Not cash, I gave store gift cards. Since the oldest child had more responsibility she would receive a higher allowance. The money would be loaded onto their cards, and the children would be given a 3x5 card with their balance on it. We agreed to several rules that would be followed by the children and adults, and put everything in writing, in case the children needed reminders. When everything was ironed out, the children were informed. They were elated. The oldest child was given a calculator to figure sales tax on items to help others realize if they had enough money for the entire purchase. They could not borrow from each other or adults for a purchase.
They had "plastic" almost like adults, but learned quickly that the card is not a spend-all, have-all. They could only spend what they had. Their parents did not allow the children to put their cards together
to buy one toy- avoiding the "who owns it" argument later.
While lay-away was available, they were introduced to payments, responsibility, and what happens if those payments were not made. Borrowing from the parents/other adults (only with the parents permission) meant making payments with a small (3 percent interest with consequences if payments weren't made). When Wal-Mart announced lay-away no longer available, I watched as the oldest child asked if she could have a second gift card to save money on when those "gotta-have-it-now" purchases are encountered. She was 10 years old. I was never prouder. No one had mentioned having two cards or a savings account until that day.
Now, each child has two cards, one marked "savings" and one marked "main." They also now can deposit money into their parent's savings account (Mom keeps excellent records) to have money to spend somewhere else. When these children are old enough for checking accounts they will be well-tuned to financial responsibility.
The oldest child is almost in college now (I feel old), has managed a checking account and debit card for almost a year, and is researching scholarships and student loans for college. She does now to read all the print in an application and to ask lots of questions. She's learned to look before she leaps. The rest of the children are learning from her, too.
While these methods may sound simplistic, they really do work. Perhaps the store gift cards will work in some families, in others it may not. Some use "money jars" stored in the parent's closet.
There are many different methods out there. The only true way to find out what works is to give different methods and honest try, say six months.
Whatever method or plan works for you or your family, stick with it. It takes effort.
Here's some incentive: A lot of the adults returning home to live with/off of their parents are doing so because of overwhelming financial irresponsibility. Teaching them to be responsible now will help help them in their future, and parents can have that "sewing room," "den," etc. of their own. And keep it.
Wednesday 22 December 2010
Credit Card Debt Advice
If you're looking for credit card debt advice, chances are you've accumulated higher balances on your cards than you know what to do with. If you're like many people,
you may be charging gas and groceries, because you just don't have enough money to make ends meet every month.
This is a bad situation to be in, but be assured that you're not alone. A lot of us have been there (a lot of people are still there), and there is hope. I used to be deep in debt myself, but I've managed to pay off those credit cards, and I don't carry a balance any more from month to month. I'm going to give you credit card debt advice based on my experience.
Ready? Here we go:
1. Get over the idea that you'll get anywhere paying the minimum payment.
The credit card companies specifically design things so they can stretch out your debt over years (and even decades) to keep you paying interest to them for as long as possible. Why wouldn't they? Why would they want to work when they can get tons of money for free just by letting you borrow theirs?
Many people in credit card debt think they can climb out by paying a little extra on each card every month. This is actually a bad approach. If you remember only one piece of credit card debt advice, remember the next one...
2. Pay off your highest interest credit card first.
If one card is at 9%, one is at 28%, and one is at 15%, you want to focus on the one that is at 28%. Put all your extra resources into paying off that card while you continue to pay the minimums on the other cards.
To many this seems counterproductive, but the highest rate card will grow the biggest the soonest, so it's important to get rid of that debt as soon as possible.
3. You can negotiate a better deal on many cards.
If you're feeling overwhelmed by those interest rates, call the credit card companies and request a better deal from the customer service representative. Just tell the rep you're getting better offers from other credit card companies and that you're thinking of switching. Most reps are authorized to lower rates instead of risking customers.
This advice won't just lower your interest rate so your balance doesn't increase so quickly, but it will also make your minimum payment lower each month.
4. Move your balances to cards with zero-rate introductory rates.
You may have heard this piece of credit card debt advice before, but did you act upon it?
If you can qualify for a new card with a low or zero introductory rate, don't hesitate to shift your existing balances over to that card. This can save you a lot of money in interest while you whittle away at your debt
Just be sure to read the fine print. Introductory rates are just that: rates you only pay for 6 or 9 months. The rates can hike right up to the old rates (or even higher) after that period, so you want to make sure to transfer your debt over to a new card with a new introductory rate once that happens.
Also watch out for any balance transfer fees, and make sure the low introductory rates count for the balance you transfer, not just new purchases.
5. As you pay off the highest interest cards, cancel them.
Remember the earlier advice to pay off your highest interest cards soonest? Once you have them paid off, cancel those suckers.
Replace them with debit cards, low-interest credit cards, or no-balance charge cards. It's a good idea to keep at least one credit card for emergencies, but you don't need a wallet full of them.
A good way to keep that one for emergencies is to make sure you leave it at home. Don't take it out where you can fall back into the habit of using it at the mall or anywhere you might make impulse purchases.
Hopefully this credit card debt advice has helped you. The important thing to realize with paying down your debt is that it probably will take years. That can be depressing, but never stop believing that you can do it. Stick with the plan and make it work!
you may be charging gas and groceries, because you just don't have enough money to make ends meet every month.
This is a bad situation to be in, but be assured that you're not alone. A lot of us have been there (a lot of people are still there), and there is hope. I used to be deep in debt myself, but I've managed to pay off those credit cards, and I don't carry a balance any more from month to month. I'm going to give you credit card debt advice based on my experience.
Ready? Here we go:
1. Get over the idea that you'll get anywhere paying the minimum payment.
The credit card companies specifically design things so they can stretch out your debt over years (and even decades) to keep you paying interest to them for as long as possible. Why wouldn't they? Why would they want to work when they can get tons of money for free just by letting you borrow theirs?
Many people in credit card debt think they can climb out by paying a little extra on each card every month. This is actually a bad approach. If you remember only one piece of credit card debt advice, remember the next one...
2. Pay off your highest interest credit card first.
If one card is at 9%, one is at 28%, and one is at 15%, you want to focus on the one that is at 28%. Put all your extra resources into paying off that card while you continue to pay the minimums on the other cards.
To many this seems counterproductive, but the highest rate card will grow the biggest the soonest, so it's important to get rid of that debt as soon as possible.
3. You can negotiate a better deal on many cards.
If you're feeling overwhelmed by those interest rates, call the credit card companies and request a better deal from the customer service representative. Just tell the rep you're getting better offers from other credit card companies and that you're thinking of switching. Most reps are authorized to lower rates instead of risking customers.
This advice won't just lower your interest rate so your balance doesn't increase so quickly, but it will also make your minimum payment lower each month.
4. Move your balances to cards with zero-rate introductory rates.
You may have heard this piece of credit card debt advice before, but did you act upon it?
If you can qualify for a new card with a low or zero introductory rate, don't hesitate to shift your existing balances over to that card. This can save you a lot of money in interest while you whittle away at your debt
Just be sure to read the fine print. Introductory rates are just that: rates you only pay for 6 or 9 months. The rates can hike right up to the old rates (or even higher) after that period, so you want to make sure to transfer your debt over to a new card with a new introductory rate once that happens.
Also watch out for any balance transfer fees, and make sure the low introductory rates count for the balance you transfer, not just new purchases.
5. As you pay off the highest interest cards, cancel them.
Remember the earlier advice to pay off your highest interest cards soonest? Once you have them paid off, cancel those suckers.
Replace them with debit cards, low-interest credit cards, or no-balance charge cards. It's a good idea to keep at least one credit card for emergencies, but you don't need a wallet full of them.
A good way to keep that one for emergencies is to make sure you leave it at home. Don't take it out where you can fall back into the habit of using it at the mall or anywhere you might make impulse purchases.
Hopefully this credit card debt advice has helped you. The important thing to realize with paying down your debt is that it probably will take years. That can be depressing, but never stop believing that you can do it. Stick with the plan and make it work!
Get Rid of Credit Card Debt
Credit card debt is no fun. If you are saddled by credit card debt, you are not alone. I read somewhere that the average family in America has credit card debt to the tune of $9,000.
Millions of people are in debt to credit card companies and struggle to make the minimum payments. Here are some tips that you can use to start erasing your credit card debt.
1) Pay more than the minimum payment. Always pay more than the minimum amount that you owe. If you can afford to do it, double or triple the minimum payment. This will help you get rid of credit card debt more quickly. See the credit card payment calculator at bankrate.com (http://www.bankrate.com/brm/calc/MinPayment.asp) to see how paying off more than the minimum payment will help get you out of debt faster.
2) If you have multiple credit cards, you might want to concentrate the bulk of the money you have available to paying one off at a time. The credit card you should focus on first is the one with the highest annual percentage rate. Pay this card off and then move on to the next highest one and so forth. This not only gets rid of the worst credit card debt (i.e. the one with the highest interest rate), but it gives you a sense of accomplishment and peace of mind, knowing that you have one less payment to worry about.
3) Something you might want to try to do is call your credit card company and speak to a customer service agent about getting your interest rate lowered. This would help lower the strain of your credit card debt. This is not something that is guaranteed to work, but it is worth a shot.
4) Try not to rack up your credit card bill. If you can avoid it, do not use your credit card at all, as this will just put you deeper into debt. Try to pay cash for what you need and eliminate the things that you want (even if only temporarily). The horrible thing about credit card debt is that it is so easy for your debt to increase.
5) Write down a list of expenses. It is very beneficial to know exactly where your money is going each month. Money seems to disappear before you even get your hands on it. Writing down a list of where your money
goes will get you thinking about certain areas where you can save money. You can change your money habits by taking the time to understand where it is going. When you look at your list (and you should include what you are paying in credit card debt), you will probably be motivated to do what you can to try to hold on to more of your money.
6) Transfer your debt from high interest rate cards to those with lower interest rates. It makes sense to do this if you can.
7) Pay down your credit card debt before you put money in a savings account. Your credit card interest rate is exponentially higher than what you gain from a savings account at a bank. Get rid of the credit card debt first, otherwise it will keep growing.
I know that those credit card bills look formidable, but it is possible to get out from under that oppressive burden. It will take some time and a little determination and planning, but it is possible. Good luck.
Millions of people are in debt to credit card companies and struggle to make the minimum payments. Here are some tips that you can use to start erasing your credit card debt.
1) Pay more than the minimum payment. Always pay more than the minimum amount that you owe. If you can afford to do it, double or triple the minimum payment. This will help you get rid of credit card debt more quickly. See the credit card payment calculator at bankrate.com (http://www.bankrate.com/brm/calc/MinPayment.asp) to see how paying off more than the minimum payment will help get you out of debt faster.
2) If you have multiple credit cards, you might want to concentrate the bulk of the money you have available to paying one off at a time. The credit card you should focus on first is the one with the highest annual percentage rate. Pay this card off and then move on to the next highest one and so forth. This not only gets rid of the worst credit card debt (i.e. the one with the highest interest rate), but it gives you a sense of accomplishment and peace of mind, knowing that you have one less payment to worry about.
3) Something you might want to try to do is call your credit card company and speak to a customer service agent about getting your interest rate lowered. This would help lower the strain of your credit card debt. This is not something that is guaranteed to work, but it is worth a shot.
4) Try not to rack up your credit card bill. If you can avoid it, do not use your credit card at all, as this will just put you deeper into debt. Try to pay cash for what you need and eliminate the things that you want (even if only temporarily). The horrible thing about credit card debt is that it is so easy for your debt to increase.
5) Write down a list of expenses. It is very beneficial to know exactly where your money is going each month. Money seems to disappear before you even get your hands on it. Writing down a list of where your money
goes will get you thinking about certain areas where you can save money. You can change your money habits by taking the time to understand where it is going. When you look at your list (and you should include what you are paying in credit card debt), you will probably be motivated to do what you can to try to hold on to more of your money.
6) Transfer your debt from high interest rate cards to those with lower interest rates. It makes sense to do this if you can.
7) Pay down your credit card debt before you put money in a savings account. Your credit card interest rate is exponentially higher than what you gain from a savings account at a bank. Get rid of the credit card debt first, otherwise it will keep growing.
I know that those credit card bills look formidable, but it is possible to get out from under that oppressive burden. It will take some time and a little determination and planning, but it is possible. Good luck.
Reasons to Pay Your Credit Card Bill in Full
Do you dread each month when you are looking at your credit card bill? You are like many Americans who are overwhelmed with credit card debt. However, it is vitally important to your finances to get this under control
as quickly as possible. I am going to list some reasons why it is important to pay your bill in full each month. If you are unable to pay the bill in full, you need to consider creating a strict budget and sticking to it, as well as consider obtaining a lower interest rate loan to pay your balances off, or even consider applying for a new card that allows interest free transfers for a certain period which will allow you to quickly pay the debt off.
Reason #1. Your credit rating. If you are only paying the minimum payment each month, you are setting yourself up for problems here. It is very important to keep your credit rating as high as possible so that your credit card balance does not provide a problem when you are looking to purchase a home or car. You want to make sure payments are paid off as quickly as possible.
Reason #2. Interest. Each month the balance is not paid in full, you are incurring interest charges. I liken this to going outside, making a nice little bonfire, and placing the money in your wallet in the fire one bill at a time. You are doing no better by carrying the balances on your bill. Interest rates are quite common to be around the 15%-20% range sometimes higher depending upon your credit score. This is a lot of wasted money each year that could be spent on things your family wants or needs.
Reason #3. This is similar to Reason #2. If you make a great purchase online for a wonderful item at a killer, price and you pay with your credit card you are not saving any money! If you save a couple of hundred bucks on the price of the item, but pay several hundred dollars in interest fees you are not saving any money, and are in fact paying more! Credit cards can hurt you in this respect.
Reason #4. Budgeting. If you are using your credit cards to pay your bills without paying off the balance every month then you have a budget problem somewhere. If you cannot afford to pay the balance each month then you
need some serious budget revisions. When you are having to use credit cards to merely make ends meet there are huge budget problems that can create devastating effects on your credit report. There are several consumer-financing companies that can assist you in reducing your monthly bills, as well as getting a workable budget set up so that you are able to pay your bills each month.
As you can see, credit cards can be either good or bad for your budget, finances, and credit file. You want your credit to be as spotless as possible, and dragging balances over months is never a good idea. Good luck with all your credit cards and you should be able to work out all budget issues quickly with some work.
as quickly as possible. I am going to list some reasons why it is important to pay your bill in full each month. If you are unable to pay the bill in full, you need to consider creating a strict budget and sticking to it, as well as consider obtaining a lower interest rate loan to pay your balances off, or even consider applying for a new card that allows interest free transfers for a certain period which will allow you to quickly pay the debt off.
Reason #1. Your credit rating. If you are only paying the minimum payment each month, you are setting yourself up for problems here. It is very important to keep your credit rating as high as possible so that your credit card balance does not provide a problem when you are looking to purchase a home or car. You want to make sure payments are paid off as quickly as possible.
Reason #2. Interest. Each month the balance is not paid in full, you are incurring interest charges. I liken this to going outside, making a nice little bonfire, and placing the money in your wallet in the fire one bill at a time. You are doing no better by carrying the balances on your bill. Interest rates are quite common to be around the 15%-20% range sometimes higher depending upon your credit score. This is a lot of wasted money each year that could be spent on things your family wants or needs.
Reason #3. This is similar to Reason #2. If you make a great purchase online for a wonderful item at a killer, price and you pay with your credit card you are not saving any money! If you save a couple of hundred bucks on the price of the item, but pay several hundred dollars in interest fees you are not saving any money, and are in fact paying more! Credit cards can hurt you in this respect.
Reason #4. Budgeting. If you are using your credit cards to pay your bills without paying off the balance every month then you have a budget problem somewhere. If you cannot afford to pay the balance each month then you
need some serious budget revisions. When you are having to use credit cards to merely make ends meet there are huge budget problems that can create devastating effects on your credit report. There are several consumer-financing companies that can assist you in reducing your monthly bills, as well as getting a workable budget set up so that you are able to pay your bills each month.
As you can see, credit cards can be either good or bad for your budget, finances, and credit file. You want your credit to be as spotless as possible, and dragging balances over months is never a good idea. Good luck with all your credit cards and you should be able to work out all budget issues quickly with some work.
Advantages: Automatically Pay Bills/ Donations with a Credit Card
Paying your bills with a credit has many advantages, compared to paying each bill individually, which can cost more money, and provides no rewards. Many utility services provide consumers the option, having their
monthly bills, directly charged each month to a credit card, includes electricity, water, and telephone companies or referred as Automatic Bill Payment. Also, many cable and satellite services, newspapers, and insurance company premiums (car and home insurance), offer the option for payment by credit card through an automatic service or providing the credit card number each billing cycle, by phone, internet or enclosed in the mail. When applying for Automatic Bill Payment, you should continue to pay your bills directly, until you are notified the service has been established. Certainly, companies that accept credit payments are happy, knowing that the credit card company is reliable to send them payment each month, rather than waiting until a customer pays a bill or pays the bill late. Contrarily, automatically having bills charged to a credit card, eliminates possibility forgetting to pay a utility bill or some other monthly charge, since the credit card company, pays that bill each month or like having your own accountant, except your only responsible for paying the credit card bill. These companies that have Automatic Bill Payment policy, do not have to consider any legal action, against customers that don't pay their bills, since nonpayment is the concern of the credit card company. However, at some point in time, the credit card company will notify the customer's utility service or other business entity, discontinue service and stop charging the credit card, for noncompliance of payment. However, credit card companies provide line of credit, not offered by utility or other type of monthly services. This can be utilized cautiously for a duration of time, when paying a minimum monthly amount to a credit card company, and preferably sooner than later, pay the entire balance.
A credit card user may add an additional amount to a credit card payment, which is credited for a future payment. This can be helpful, when going away on vacation or long trips, and next month(s) bills have sufficient
reserve funds to be paid, by the credit card company. Since, utility or other basic services are billed each month. Also, a good method to have sufficient reserved money held in a credit card account, if you are tempted to spend that money, before the next credit card bill arrives. However, any money credited, does not earn any interest. This approach can be helpful, if you have a college student that has credit card, and uses it responsible. Advance payment to a credit card, ensures the student's bill will be paid following month or longer, if you can calculate approximately next month's charges. Also, if you are away from home for a long period of time or have a busy schedule, which may cause you to forget to pay a future credit card payment.
Consumers that use a credit card to pay monthly, quarterly or annual bill charges increase the number of advantage reward points or earn rewards faster during the year. Also, paying with a credit card instead of cash increases reward points or benefits. Limit the number of credit cards utilized two - four cards - this will quickly increase rewards points, than having many credit cards paying bills. Certainly, advantageous signing-up with a credit company that offers some type of rewards points, "cash back" program, frequent flyer mileage, and/or rebate program, whenever a charge is applied, and paying no annual fee. Sometimes, paying an annual fee for a credit card, will entitle the credit card user availability of more services, and better selection of gifts for the exchange of reward points. Credit card companies that offer "cash back' rewards, make it possible for consumers to receive money back, from a credit card company, and in some situations, the amount can be significant. For example: A credit card company may offer the user, one percent "cash back," for each dollar charged on a credit card. If the monthly expenditures on the credit card total $2,000, than the credit card user would receive $20 "cash back." If that amount averages $2000, each month or more, by the end of the year, the total "cash back" would be at least $240. Other reward programs, such as American Express, offer advantage reward points for each dollar charged on a credit, after payment is received, and often will include additional free bonus points for certain charges. Sometimes, during the year, credit card companies including American Express, will offer double point rewards, for certain type of charges, including purchasing groceries, gasoline and insurance payment. By the end of the year, reward points could add up significantly, especially for large purchases or travel charges. Also, before the Holiday Season, reward points can be exchange for various gifts, and saving money, rather than to pay for these gifts. Besides, exchanging reward points for gifts will save money, on sales tax, usually no delivery charge, and whenever getting a gift for yourself. Also, paying each bill individually, adds to the cost of postage, and sometimes the cost of an envelope, which can be reduced to one stamp per credit card service, and a return envelope is provided. Reward points earned by a credit card does not expire, compare to frequent flyer mileage points, and other reward service providers, often have an expiring date.
Making charitable donations with a credit card has many advantages, than just claiming a deduction on your income tax return. When the charge is applied to your credit card, payment is not required immediately, until the credit card bill arrives in the mail. Some people will charge a credit card for a charitable donation, and will be expecting to receive amount of money, in the near future (within a few days), that will pay all or part of the credit card charge. Also, any amount charged on a credit card, user will receive after payment, reward points, "cash back" amount or benefits, offered by the credit card company. Most charitable organizations, accept credit card donations, since payment is send to them, from the credit card company, after verification, and processing the transaction. Many charitable organizations offer the option to debit a user credit card, for a specific amount each month. Certainly, this process is convenient, and accounting each month for a deduction.
When a monthly bills, arrive in the mail, which have been automatically charged to a credit card, those amounts should be written down, and then later, compared to the amounts charged on the corresponding credit card. This will ensure the accuracy and inconsistencies can be rectified, by contacting the credit card company, and/or charged service company or business, as soon as possible. Credit card companies usually have twenty-four telephone service, most problems can be resolved anytime, day or night. Also, many offer a website address, where customers can send E-mails to have questions answered. Sometimes for various reasons, necessary to notify the service or business that automatically charges your credit card, by providing new credit card number (and/or a new credit card service). Often, getting a new credit card number is necessary, when a credit card is fraudulently used, stolen or misplaced.
Many credit card companies provide annual statements, relating to previous year transactions. This information is useful, locating tax deductions, when preparing an income tax return.Some credit card companies, may offer this service for an additional charge or upgrade of a credit card service, while other credit card companies, don't provide this service. American Express and maybe other credit card companies will subdivide the year's paid expenses into various categories (including restaurants, entertainment, travel, etc.), which is helpful finding acceptable tax deductions including donations.
Certainly, when a credit card bill is not paid on time, additional charges will be added, and the credit rating of the user will be affected negatively. The convince of paying monthly bills by a credit card, prior there should be sufficient money collected, earned each month or during the year, which is put aside, for each monthly bill that is prepaid. Certainly, tempting to spend the money in the bank account for other expenses, instead of using the funds to pay the monthly credit card bill, should be avoided. When financially manageable, having the ability to spend the money set a side for a credit card bill, if the amount is replaced, in short amount of time or within days, before the credit card bill arrives in the mail. Actually, when money is set aside for credit card bills, that money will earn more interest in a financial institution or bank account. This happens often, considering the credit card bill does not have to be paid immediately, for at least a few days or a week later, until the amount is due. Also, after a bill arrives in the mail, which has been prepaid, usually at least a few days or more, the credit card bill will then arrive. Once the credit card bill company receives payment by mail and the check clears the customer bank account, and approximately 30 days have elapsed, since first receiving a prepaid bill(s).
Credit card service companies provide access to cash (a line of credit) or ability to write checks, but the interest and fees are very high, since the amount being borrowed, has not been back - up by a collateral asset or considered unsecured debt. This type borrowing should be considered only for emergencies or extremely short duration of time. Certainly, beneficial borrowing money from a bank or lending institution, since the interest is lower (assuming there is collateral or equity to secure the loan), and the interest is tax deductible, for certain types of loans, including home equity loans.
monthly bills, directly charged each month to a credit card, includes electricity, water, and telephone companies or referred as Automatic Bill Payment. Also, many cable and satellite services, newspapers, and insurance company premiums (car and home insurance), offer the option for payment by credit card through an automatic service or providing the credit card number each billing cycle, by phone, internet or enclosed in the mail. When applying for Automatic Bill Payment, you should continue to pay your bills directly, until you are notified the service has been established. Certainly, companies that accept credit payments are happy, knowing that the credit card company is reliable to send them payment each month, rather than waiting until a customer pays a bill or pays the bill late. Contrarily, automatically having bills charged to a credit card, eliminates possibility forgetting to pay a utility bill or some other monthly charge, since the credit card company, pays that bill each month or like having your own accountant, except your only responsible for paying the credit card bill. These companies that have Automatic Bill Payment policy, do not have to consider any legal action, against customers that don't pay their bills, since nonpayment is the concern of the credit card company. However, at some point in time, the credit card company will notify the customer's utility service or other business entity, discontinue service and stop charging the credit card, for noncompliance of payment. However, credit card companies provide line of credit, not offered by utility or other type of monthly services. This can be utilized cautiously for a duration of time, when paying a minimum monthly amount to a credit card company, and preferably sooner than later, pay the entire balance.
A credit card user may add an additional amount to a credit card payment, which is credited for a future payment. This can be helpful, when going away on vacation or long trips, and next month(s) bills have sufficient
reserve funds to be paid, by the credit card company. Since, utility or other basic services are billed each month. Also, a good method to have sufficient reserved money held in a credit card account, if you are tempted to spend that money, before the next credit card bill arrives. However, any money credited, does not earn any interest. This approach can be helpful, if you have a college student that has credit card, and uses it responsible. Advance payment to a credit card, ensures the student's bill will be paid following month or longer, if you can calculate approximately next month's charges. Also, if you are away from home for a long period of time or have a busy schedule, which may cause you to forget to pay a future credit card payment.
Consumers that use a credit card to pay monthly, quarterly or annual bill charges increase the number of advantage reward points or earn rewards faster during the year. Also, paying with a credit card instead of cash increases reward points or benefits. Limit the number of credit cards utilized two - four cards - this will quickly increase rewards points, than having many credit cards paying bills. Certainly, advantageous signing-up with a credit company that offers some type of rewards points, "cash back" program, frequent flyer mileage, and/or rebate program, whenever a charge is applied, and paying no annual fee. Sometimes, paying an annual fee for a credit card, will entitle the credit card user availability of more services, and better selection of gifts for the exchange of reward points. Credit card companies that offer "cash back' rewards, make it possible for consumers to receive money back, from a credit card company, and in some situations, the amount can be significant. For example: A credit card company may offer the user, one percent "cash back," for each dollar charged on a credit card. If the monthly expenditures on the credit card total $2,000, than the credit card user would receive $20 "cash back." If that amount averages $2000, each month or more, by the end of the year, the total "cash back" would be at least $240. Other reward programs, such as American Express, offer advantage reward points for each dollar charged on a credit, after payment is received, and often will include additional free bonus points for certain charges. Sometimes, during the year, credit card companies including American Express, will offer double point rewards, for certain type of charges, including purchasing groceries, gasoline and insurance payment. By the end of the year, reward points could add up significantly, especially for large purchases or travel charges. Also, before the Holiday Season, reward points can be exchange for various gifts, and saving money, rather than to pay for these gifts. Besides, exchanging reward points for gifts will save money, on sales tax, usually no delivery charge, and whenever getting a gift for yourself. Also, paying each bill individually, adds to the cost of postage, and sometimes the cost of an envelope, which can be reduced to one stamp per credit card service, and a return envelope is provided. Reward points earned by a credit card does not expire, compare to frequent flyer mileage points, and other reward service providers, often have an expiring date.
Making charitable donations with a credit card has many advantages, than just claiming a deduction on your income tax return. When the charge is applied to your credit card, payment is not required immediately, until the credit card bill arrives in the mail. Some people will charge a credit card for a charitable donation, and will be expecting to receive amount of money, in the near future (within a few days), that will pay all or part of the credit card charge. Also, any amount charged on a credit card, user will receive after payment, reward points, "cash back" amount or benefits, offered by the credit card company. Most charitable organizations, accept credit card donations, since payment is send to them, from the credit card company, after verification, and processing the transaction. Many charitable organizations offer the option to debit a user credit card, for a specific amount each month. Certainly, this process is convenient, and accounting each month for a deduction.
When a monthly bills, arrive in the mail, which have been automatically charged to a credit card, those amounts should be written down, and then later, compared to the amounts charged on the corresponding credit card. This will ensure the accuracy and inconsistencies can be rectified, by contacting the credit card company, and/or charged service company or business, as soon as possible. Credit card companies usually have twenty-four telephone service, most problems can be resolved anytime, day or night. Also, many offer a website address, where customers can send E-mails to have questions answered. Sometimes for various reasons, necessary to notify the service or business that automatically charges your credit card, by providing new credit card number (and/or a new credit card service). Often, getting a new credit card number is necessary, when a credit card is fraudulently used, stolen or misplaced.
Many credit card companies provide annual statements, relating to previous year transactions. This information is useful, locating tax deductions, when preparing an income tax return.Some credit card companies, may offer this service for an additional charge or upgrade of a credit card service, while other credit card companies, don't provide this service. American Express and maybe other credit card companies will subdivide the year's paid expenses into various categories (including restaurants, entertainment, travel, etc.), which is helpful finding acceptable tax deductions including donations.
Certainly, when a credit card bill is not paid on time, additional charges will be added, and the credit rating of the user will be affected negatively. The convince of paying monthly bills by a credit card, prior there should be sufficient money collected, earned each month or during the year, which is put aside, for each monthly bill that is prepaid. Certainly, tempting to spend the money in the bank account for other expenses, instead of using the funds to pay the monthly credit card bill, should be avoided. When financially manageable, having the ability to spend the money set a side for a credit card bill, if the amount is replaced, in short amount of time or within days, before the credit card bill arrives in the mail. Actually, when money is set aside for credit card bills, that money will earn more interest in a financial institution or bank account. This happens often, considering the credit card bill does not have to be paid immediately, for at least a few days or a week later, until the amount is due. Also, after a bill arrives in the mail, which has been prepaid, usually at least a few days or more, the credit card bill will then arrive. Once the credit card bill company receives payment by mail and the check clears the customer bank account, and approximately 30 days have elapsed, since first receiving a prepaid bill(s).
Credit card service companies provide access to cash (a line of credit) or ability to write checks, but the interest and fees are very high, since the amount being borrowed, has not been back - up by a collateral asset or considered unsecured debt. This type borrowing should be considered only for emergencies or extremely short duration of time. Certainly, beneficial borrowing money from a bank or lending institution, since the interest is lower (assuming there is collateral or equity to secure the loan), and the interest is tax deductible, for certain types of loans, including home equity loans.
Tips for Staying Healthy in a Bad Economy
I am sure you have had to hear some elder in your own family tell you, "Eat your vegetables, they will make you grow up strong and healthy!" As luck would have it, they were right. A true key to staying
healthy, is a proper diet, exercise, and cleanliness. Before the white man came to America, the Possum was the closest thing to "Junk Food" the Indians had, to compare to. With things like Chocolate, sugar, and tobacco, (to list a few,) being introduced into the western world, came rotten teeth, obesity, and lung cancer.
Now, it's not the products, so much, as it is the person's fault, who is using them. Addiction, abuse, and good old gluttony, is the true beast here in the western world. Knowing what it is your putting into your body, is as important to your health, as how much your putting into your body. Some things we eat can do more damage if abused, than other things do, such as, salt or sugar. I do not know any one who would drink one cup of salt in one day, but we do not find any trouble drinking one full cup of sugar in our tea, in just one day. Sad fact is, both are harmful, if used to much.
As the economy gets worse, people began to look for ways to cut back on spending, doing so, our health usually takes a back seat, to our power bill. The average middle class family goes out to eat once or twice a week, 90% of the food they eat will be fried, contain large amounts of: salt, sugar, fat, artificial colors, sodium citrate, lactic acid, sorbic acid, modified food starch, xanthan gum, calcium disodium edta, sodium benzoate, along with a huge list of other chemicals not found in a vine ripened Tomato, fresh picked apple, or even in a glass of water. (Not many of you reading this, can boast that you drink 3 glasses of water a day, now can you?)
So from this one writers opinion, and from the 40+ years of practices, I would suggest to you the reader, web surfer, and fellow American, family and friends, in this troubled economy staying healthy is to your best
benefit, doing so means eating right, and cutting back on the other things you may consider more important. Use less electric, gas, and "Night out on the town" in a month instead, then you can save more money, you know, for your grocery bill!
Investing in your health, instead of the hot rod in the garage, will save you thousands, upon thousands in medical bills. In turn, having better health, leads to a longer happier life. Any public library will have a book on "The Proper Diet" for all ethnics and ages. As I am sure, the Sergeant general would agree, eating healthy, and keeping clean, has been known to lead to sever longevity and happier life, in laboratory studies.
For the most part, store have category like any good book. On isle 12, is bread, flower, sugar, or what not, and on isle 8 you'll find coffee, tea, and spices. The true differences are not the product, but rather the prices. One store may impose a 300% markup, while another only imposes 125%, where as, the one who supplies the store is charging a lot less, for the same thing, but without the chemicals to preserve it.
As I see it, If the stores charged a 5% to 7% markup (instead of the 150% to 300%,) they would not be able to keep the shelves loaded fast enough, (resulting in no need for preservative in the first place,) but that is just my own opinion.
Farming and ranching should never exceed it's available size. Doing so causes product to expire before it can be delivered to it's destination. The proper thing would be to make another (farm, or ranch) closer to the intended destination, eliminating the need to extend the shelf life of editable foods.
So shop your local markets who buy from there local markets, check the sales list, fliers, and paper, for bargain deals, coupons, and special days, for lower prices on the things you need. Try your local "Farmers Market" for your produce, look in your area for a meat production facility, like for example; "Copeland's Central Packing Company" (USDA Inspected!) on Sheppard access, in Wichita Falls, Texas. (close to my home,) where your hamburger meat wont get a "Dye" (FD&C red #11, 7, and 19.) or saturated in salt water, such as is done to chicken. To me, the beauty of a steak, is when it's taken off the grill, and not before it's put there, that truly matters the most.
Shopping SMART, is better for the "Human Body" and provides better health, which prevents medical cost, reducing insurance cost, and saves money in your wallet over the greater picture of time. It should be
logical to assume that "eating" the same as you "shop" would have the same (or better,) end results. One very smart thing you can form into a habit, is get your local "Sunday's Paper" from a news stand, and browse the prices in the store's advertisements. It will save you loads of time, and gallons of gas in the years to come. (Also gets your eye's off this screen at least once a week.)
Even if you do not cut, clip, coupons, (Which really does help save you a lot of money!) the price is posted, and there are usually more than one store's flyer's, coupons, and sales ads in them with there price on it. Walmart, Walgreen's, and Target, all three pay for Sunday's Advertisement in the same newspaper. (Example; Dallas Times, San Fransisco Times, etc.) all three have an AD for the same exact bottle of Bufferin Aspirin. All three advertise a slightly different price. Going by the lowest price, offered at the closest store, with the most items your looking for, is where you want to go.
There are many things you can do to save money in a hard economic environment, from using less, to saving more. Price checking, coupon clipping, and picky choosing, just to scratch the surface. Everyone has the ability to learn, and can do what they put there mind to doing, the human race is the only species on this planet that creates what they can imagine in there thoughts. No one is limited to anything less than there own imagination. So on this next "Shopping Day" try some of these Idea's, get out and meet some new people, think of other Idea's to try, ask around, do some serious communications with your local community, and read your local paper! (There ONLINE as well!)
healthy, is a proper diet, exercise, and cleanliness. Before the white man came to America, the Possum was the closest thing to "Junk Food" the Indians had, to compare to. With things like Chocolate, sugar, and tobacco, (to list a few,) being introduced into the western world, came rotten teeth, obesity, and lung cancer.
Now, it's not the products, so much, as it is the person's fault, who is using them. Addiction, abuse, and good old gluttony, is the true beast here in the western world. Knowing what it is your putting into your body, is as important to your health, as how much your putting into your body. Some things we eat can do more damage if abused, than other things do, such as, salt or sugar. I do not know any one who would drink one cup of salt in one day, but we do not find any trouble drinking one full cup of sugar in our tea, in just one day. Sad fact is, both are harmful, if used to much.
As the economy gets worse, people began to look for ways to cut back on spending, doing so, our health usually takes a back seat, to our power bill. The average middle class family goes out to eat once or twice a week, 90% of the food they eat will be fried, contain large amounts of: salt, sugar, fat, artificial colors, sodium citrate, lactic acid, sorbic acid, modified food starch, xanthan gum, calcium disodium edta, sodium benzoate, along with a huge list of other chemicals not found in a vine ripened Tomato, fresh picked apple, or even in a glass of water. (Not many of you reading this, can boast that you drink 3 glasses of water a day, now can you?)
So from this one writers opinion, and from the 40+ years of practices, I would suggest to you the reader, web surfer, and fellow American, family and friends, in this troubled economy staying healthy is to your best
benefit, doing so means eating right, and cutting back on the other things you may consider more important. Use less electric, gas, and "Night out on the town" in a month instead, then you can save more money, you know, for your grocery bill!
Investing in your health, instead of the hot rod in the garage, will save you thousands, upon thousands in medical bills. In turn, having better health, leads to a longer happier life. Any public library will have a book on "The Proper Diet" for all ethnics and ages. As I am sure, the Sergeant general would agree, eating healthy, and keeping clean, has been known to lead to sever longevity and happier life, in laboratory studies.
For the most part, store have category like any good book. On isle 12, is bread, flower, sugar, or what not, and on isle 8 you'll find coffee, tea, and spices. The true differences are not the product, but rather the prices. One store may impose a 300% markup, while another only imposes 125%, where as, the one who supplies the store is charging a lot less, for the same thing, but without the chemicals to preserve it.
As I see it, If the stores charged a 5% to 7% markup (instead of the 150% to 300%,) they would not be able to keep the shelves loaded fast enough, (resulting in no need for preservative in the first place,) but that is just my own opinion.
Farming and ranching should never exceed it's available size. Doing so causes product to expire before it can be delivered to it's destination. The proper thing would be to make another (farm, or ranch) closer to the intended destination, eliminating the need to extend the shelf life of editable foods.
So shop your local markets who buy from there local markets, check the sales list, fliers, and paper, for bargain deals, coupons, and special days, for lower prices on the things you need. Try your local "Farmers Market" for your produce, look in your area for a meat production facility, like for example; "Copeland's Central Packing Company" (USDA Inspected!) on Sheppard access, in Wichita Falls, Texas. (close to my home,) where your hamburger meat wont get a "Dye" (FD&C red #11, 7, and 19.) or saturated in salt water, such as is done to chicken. To me, the beauty of a steak, is when it's taken off the grill, and not before it's put there, that truly matters the most.
Shopping SMART, is better for the "Human Body" and provides better health, which prevents medical cost, reducing insurance cost, and saves money in your wallet over the greater picture of time. It should be
logical to assume that "eating" the same as you "shop" would have the same (or better,) end results. One very smart thing you can form into a habit, is get your local "Sunday's Paper" from a news stand, and browse the prices in the store's advertisements. It will save you loads of time, and gallons of gas in the years to come. (Also gets your eye's off this screen at least once a week.)
Even if you do not cut, clip, coupons, (Which really does help save you a lot of money!) the price is posted, and there are usually more than one store's flyer's, coupons, and sales ads in them with there price on it. Walmart, Walgreen's, and Target, all three pay for Sunday's Advertisement in the same newspaper. (Example; Dallas Times, San Fransisco Times, etc.) all three have an AD for the same exact bottle of Bufferin Aspirin. All three advertise a slightly different price. Going by the lowest price, offered at the closest store, with the most items your looking for, is where you want to go.
There are many things you can do to save money in a hard economic environment, from using less, to saving more. Price checking, coupon clipping, and picky choosing, just to scratch the surface. Everyone has the ability to learn, and can do what they put there mind to doing, the human race is the only species on this planet that creates what they can imagine in there thoughts. No one is limited to anything less than there own imagination. So on this next "Shopping Day" try some of these Idea's, get out and meet some new people, think of other Idea's to try, ask around, do some serious communications with your local community, and read your local paper! (There ONLINE as well!)
6 Tips for Spending Less and Saving More
One of the biggest problems when it comes to financial success is holding on to the money you have. They don't know how to manage their spending habits. With the right habits you will go along way towards paying the
bills and being able to afford the things you want as well. At first it will seem difficult to limit your spending habits but overtime you'll be able to break bad habits and develop new ones.
Credit Cards
Credit cards can be very useful at times but are also often the cause of overspending. It's best to try and avoid using them and pay cash whenever possible. This will help you avoid making a purchase unless you actually have the money available. If you must use a credit card be prepared to pay the balance off monthly. This will save a lot of money because you'll be avoiding interest charges. Transfer and already existing card balance to a card with a lower interest rate, and try to find a card that doesn't charge an annual fee.
Phones
Some people will spend hundreds of dollars a month on phone charges alone. Limit your phone use to off peak hours. Check with your provider and find out when you have cheaper or unlimited calls.
Coupons
Check the sales page in you Sunday paper. Don't throw away coupons. Saving a few cents here and there may not seem like much, but once again you'd be surprised how much this can add up to be overtime. Many stores will double or triple the amount of the coupon. This technique can save you up to 20 or 30 dollars every time you go to the grocery store.
Pay Yourself First
When configuring your budget, plan for your savings first. You will grow wealthier every month if you set aside money for yourself first. Decide on a set amount that you will pay yourself. It doesn't have to be much. 5 to 10 percent of every paycheck will do. Then, deposit the amount into a savings account before paying any bills.
Do this at the beginning of the month. If you wait until the end of the month, you'll probably end up over spending and you won't have any left to save. Paying yourself first will give you an organized way to make your money grow.
Penny Pincher
If you really want to save be as cheap as possible. Don't feel embarrassed to pick up pennies off the street. Put all the spare change you accumulate in a can or jar. After a period of time count it and roll it up.
You may find that you have an extra 30 or 40 bucks just in spare change.
Get all you can out of any product you purchase. Turn bottles upside down and drain them to get every last bit out of it.
Don't buy name brand items just because you think they're better. For the most part they're really no different and you can save a fortune.
Try and use everyday household items as replacements. Try using ammonia instead of fancy floor cleaners. If your furniture needs some polishing, a mix of white vinegar and vegetable oil makes a great polish replacement. For a freezer bag, use empty chip bags and close with masking tape or any bowl with a lid, such as a margarine tub will due in a pinch.
Often overlooked
With many things in life it takes time to see significant results and most people just don't have the patience for it. If you learn to become patient you'll see the results and you'll be much happier in the long run.
When creating a budget don't think you can set it once and forget about it. Things change and some times it needs to be adjusted. A budget is created using a set of expenses and income figures that are subject to change. As the figures change, so should the budget
While everyone remembers the holidays they forget to plan for them. Set-aside some money for presents, food, parties, etc. These items should be factored in when making a budget and saved for throughout the year.
Finally when planning a vacation people remember to factor in the cost for travel and accommodations but they underestimate money needed for food, entertainment, and spending money. Keep in mind that all the resorts and tourists areas are double or triple what you would normally pay.
bills and being able to afford the things you want as well. At first it will seem difficult to limit your spending habits but overtime you'll be able to break bad habits and develop new ones.
Credit Cards
Credit cards can be very useful at times but are also often the cause of overspending. It's best to try and avoid using them and pay cash whenever possible. This will help you avoid making a purchase unless you actually have the money available. If you must use a credit card be prepared to pay the balance off monthly. This will save a lot of money because you'll be avoiding interest charges. Transfer and already existing card balance to a card with a lower interest rate, and try to find a card that doesn't charge an annual fee.
Phones
Some people will spend hundreds of dollars a month on phone charges alone. Limit your phone use to off peak hours. Check with your provider and find out when you have cheaper or unlimited calls.
Coupons
Check the sales page in you Sunday paper. Don't throw away coupons. Saving a few cents here and there may not seem like much, but once again you'd be surprised how much this can add up to be overtime. Many stores will double or triple the amount of the coupon. This technique can save you up to 20 or 30 dollars every time you go to the grocery store.
Pay Yourself First
When configuring your budget, plan for your savings first. You will grow wealthier every month if you set aside money for yourself first. Decide on a set amount that you will pay yourself. It doesn't have to be much. 5 to 10 percent of every paycheck will do. Then, deposit the amount into a savings account before paying any bills.
Do this at the beginning of the month. If you wait until the end of the month, you'll probably end up over spending and you won't have any left to save. Paying yourself first will give you an organized way to make your money grow.
Penny Pincher
If you really want to save be as cheap as possible. Don't feel embarrassed to pick up pennies off the street. Put all the spare change you accumulate in a can or jar. After a period of time count it and roll it up.
You may find that you have an extra 30 or 40 bucks just in spare change.
Get all you can out of any product you purchase. Turn bottles upside down and drain them to get every last bit out of it.
Don't buy name brand items just because you think they're better. For the most part they're really no different and you can save a fortune.
Try and use everyday household items as replacements. Try using ammonia instead of fancy floor cleaners. If your furniture needs some polishing, a mix of white vinegar and vegetable oil makes a great polish replacement. For a freezer bag, use empty chip bags and close with masking tape or any bowl with a lid, such as a margarine tub will due in a pinch.
Often overlooked
With many things in life it takes time to see significant results and most people just don't have the patience for it. If you learn to become patient you'll see the results and you'll be much happier in the long run.
When creating a budget don't think you can set it once and forget about it. Things change and some times it needs to be adjusted. A budget is created using a set of expenses and income figures that are subject to change. As the figures change, so should the budget
While everyone remembers the holidays they forget to plan for them. Set-aside some money for presents, food, parties, etc. These items should be factored in when making a budget and saved for throughout the year.
Finally when planning a vacation people remember to factor in the cost for travel and accommodations but they underestimate money needed for food, entertainment, and spending money. Keep in mind that all the resorts and tourists areas are double or triple what you would normally pay.
Cash Back Credit Cards
The key to using a cash back credit card is to NOT carry a balance on the card. You should pay your total balance off monthly.
If you know that you won’t be able to pay off the balance monthly and find yourself carrying a balance; then the balance would negate any reward you might receive.
If you must carry a balance then do not look for a “reward” card but look instead for the lowest interest rate card that you can find. Because the majority of “reward” cards charge a high interest rate.
But, if you pay the balance off monthly you do not need to worry about the high interest rate. You need to worry about finding a card that matches your spending habits.
In this way, you will get the most rewards for using the right card for you.
For example, if you buy a lot of gas, you would want to find a card that offers more rewards for gas purchases. Some cards offer up to five percent back on gas purchases.
But, if that type of card wouldn’t work for your spending habits perhaps you’d be more interested in a card that rewards you for purchases such as, Groceries, Utilities, Travel, Restaurants, Movies, or even Home Improvements.
Yes, it's true there are cards that reward you for different types of purchases. To find out more about the variety of “reward” cards available you can visit: www.cardoffers.com.
After your research and you discover the perfect card for your spending habits, make sure it doesn't charge you an annual fee. Whether you choose a “reward” card or a low-interest card you will want to avoid a card that charges an annual fee.
If you know that you won’t be able to pay off the balance monthly and find yourself carrying a balance; then the balance would negate any reward you might receive.
If you must carry a balance then do not look for a “reward” card but look instead for the lowest interest rate card that you can find. Because the majority of “reward” cards charge a high interest rate.
But, if you pay the balance off monthly you do not need to worry about the high interest rate. You need to worry about finding a card that matches your spending habits.
In this way, you will get the most rewards for using the right card for you.
For example, if you buy a lot of gas, you would want to find a card that offers more rewards for gas purchases. Some cards offer up to five percent back on gas purchases.
But, if that type of card wouldn’t work for your spending habits perhaps you’d be more interested in a card that rewards you for purchases such as, Groceries, Utilities, Travel, Restaurants, Movies, or even Home Improvements.
Yes, it's true there are cards that reward you for different types of purchases. To find out more about the variety of “reward” cards available you can visit: www.cardoffers.com.
After your research and you discover the perfect card for your spending habits, make sure it doesn't charge you an annual fee. Whether you choose a “reward” card or a low-interest card you will want to avoid a card that charges an annual fee.
Five Steps to Financial Stability
There are five steps you must perform that will help you pay off your debt and get you back on track to financial stability. The steps consist of: evaluating your current financial situation, defining what you want out
of a budget or your financial goals, developing a plan of action, implementing your plan, and reviewing, reevaluating, and revising your plan. I know this all sounds like it requires a lot of effort but financial stability is worth it. You are not alone in this, everyone experiences debt some point during their lives.
The first step is to evaluate your current financial situation. I recommend keeping track of where your money is being spent for a month. If you have a bank account through one of the larger banks, they have already done this for you. If not, you will need to categorize your expenses. Utilities, entertainment, auto/gas, education, groceries, and veterinary expenses are only a few categories that you can use. The type of categories will depend on your personal expenses. Microsoft Money and Quicken are two forms of software that help you keep track of your finances.
The second step is to define what exactly it is you want out of a budget. Goals can be placed into three categories: short term, medium term and long term. Short term goals are goals that you do not require longer than a year to pay off. Medium term goals are goals that require longer than a year but less than five years to pay off. Long term goals are goals that take longer than five years. Some short term goals include purchasing a new stereo system, an entertainment system, a small computer, etc. Purchasing a new refrigerator, stove, and vehicle are a few examples of medium term goals. Some long term goals include purchasing a home, boat, or tractor, investing in a 401K plan, and paying off an education loan.
The third, fourth and fifth steps will require tweaking throughout the rest of your life. The third step is to develop a plan of action. This plan will help you meet your goals if you stick to it. In order to prevent
yourself from straying, it is important to make the plan realistic to your income. The plan should also be flexible. Opening a money account will ensure that you have "extra" money hidden in savings for unexpected incidences that could appear at any given moment. The fourth step is to implement your plan. I would start one week before the end of the month. This will allow you to make your payments one week in advance so that you are guaranteed to never make a late payment. This also allows you plenty of time to correct payment problems before the bill's due date. The fifth step requires you to review, reevaluate, and revise your plan. This step is very important if you wish to remain financially stable. As your career advances, so will your income. If you get married or have children, your living arrangements will also grow which means your utility bills will increase. It is important to stay on top of your financial obligations.
One last note of advice, if you don't have the cash to buy something then don't buy it. Keep your credit card at home in a safe where you can't access it. If you really want to make sure you don't use your credit card then ask a friend or family member to choose the code on the safe and not tell you what it is until that card is paid off. If that is not motivation, I don't know what is! Happy financial planning!
of a budget or your financial goals, developing a plan of action, implementing your plan, and reviewing, reevaluating, and revising your plan. I know this all sounds like it requires a lot of effort but financial stability is worth it. You are not alone in this, everyone experiences debt some point during their lives.
The first step is to evaluate your current financial situation. I recommend keeping track of where your money is being spent for a month. If you have a bank account through one of the larger banks, they have already done this for you. If not, you will need to categorize your expenses. Utilities, entertainment, auto/gas, education, groceries, and veterinary expenses are only a few categories that you can use. The type of categories will depend on your personal expenses. Microsoft Money and Quicken are two forms of software that help you keep track of your finances.
The second step is to define what exactly it is you want out of a budget. Goals can be placed into three categories: short term, medium term and long term. Short term goals are goals that you do not require longer than a year to pay off. Medium term goals are goals that require longer than a year but less than five years to pay off. Long term goals are goals that take longer than five years. Some short term goals include purchasing a new stereo system, an entertainment system, a small computer, etc. Purchasing a new refrigerator, stove, and vehicle are a few examples of medium term goals. Some long term goals include purchasing a home, boat, or tractor, investing in a 401K plan, and paying off an education loan.
The third, fourth and fifth steps will require tweaking throughout the rest of your life. The third step is to develop a plan of action. This plan will help you meet your goals if you stick to it. In order to prevent
yourself from straying, it is important to make the plan realistic to your income. The plan should also be flexible. Opening a money account will ensure that you have "extra" money hidden in savings for unexpected incidences that could appear at any given moment. The fourth step is to implement your plan. I would start one week before the end of the month. This will allow you to make your payments one week in advance so that you are guaranteed to never make a late payment. This also allows you plenty of time to correct payment problems before the bill's due date. The fifth step requires you to review, reevaluate, and revise your plan. This step is very important if you wish to remain financially stable. As your career advances, so will your income. If you get married or have children, your living arrangements will also grow which means your utility bills will increase. It is important to stay on top of your financial obligations.
One last note of advice, if you don't have the cash to buy something then don't buy it. Keep your credit card at home in a safe where you can't access it. If you really want to make sure you don't use your credit card then ask a friend or family member to choose the code on the safe and not tell you what it is until that card is paid off. If that is not motivation, I don't know what is! Happy financial planning!
Defining Your Financial Goals
Have you had trouble getting your money to work for you? All the financial advisors tell you that money has to work for you to grow, but no matter what you do, you just can’t get it to work.
The following are some simple suggestions to help you gain an understanding of your money, what it needs to do and how to take the first steps to make it work for you. This article is not a step-by-step guide for saving or investing, it is a simple guideline to get you in the right mind-set with your money.
What Money Can and Can’t Do.
Money can pay for an education, pay for nice cars, homes, fund vacations, and sporting events. Money cannot buy love, friendship, peace, happiness or knowledge. It can fund the education but cannot buy the knowledge and plant it into your mind. Money cannot buy your values or self-esteem. But money is directly related to your values and your self-esteem. It has been said that, “the love of money is the root of all evil.” This is simply not true. It’s the greed that leads to evil-doing of men. You can love and respect money without being greedy. You can have the mind-set of drawing money to you without being greedy. You have to understand money to make it work. Money is a living entity that needs attention just as much as a child does.
You need to be clear about what you want out of your money and be as specific as possible.
Things to consider are:
What’s important to you? Giving your children a good education? Having a nice home and car? Paying the bills on time and having money left over?
What makes you happy? Giving your family nice things? Taking a nice vacation every year? Security?
How much money do you want to have? Do you want to retire with an abundance of money? Do you want a lot of investments?
How do you want to spend that money? Cars, boats, summer beach house? Dining in fine restaurants? Home electronics?
What do you want to contribute with your money? Do you want to give to charity?
When you answer these questions you will be revealing your values and ambitions. These need to be clear and precise. Obstacles may slow you down but, once you have direction and purpose, you will be able to overcome
those obstacles and move forward.
You need focused direction to give it power. If your direction is not focused it will not have the power it needs to make your money work for you.
Define your priorities for your financial goals.
Financial success comes from making your money work. This is the basic foundation of all wealthy people. They have learned how to make their money work for them thus resulting in a strong financial foundation.
If you do not set financial priorities you will not increase your net worth. Setting aside money is always the best bet. Saving money should be treated like any other bill. Sometimes this is difficult when the only person holding you accountable for this “payment” is yourself. No collector will call, there will be no late charges deducted from your savings if you don’t pay it on time. But the end result will be not having enough money for retirement. In a sense, not planning for retirement will be like tons of late fees being heaped on you at once, because there won't be any money set aside when you retire.
Know what you want to attain with your money.
Never allow circumstances to direct your spending habits. You have to be in charge of your money to make it work for you. Money is like anything else, if it doesn’t have an objective it will be used on whatever comes along. You need financial goals in place to avoid watching your money go out the window. If you walk into a store without a plan of which items to buy and the amount of money you want to spend, you will end up with a lot of frivolous purchases that waste your money.
At first you may need to keep track of every penny until you realize just where your money goes. One trip to a convenience store can cost you well over $5. If you stop at the convenience store several times a week, you could be looking at the amount of money needed each week for your retirement plans.
Time and consistency are very important for financial wealth. Time will help compensate for not having much extra money to put back. A little put back over a larger time frame works to your advantage.
You increase your options, your confidence and your security by saving and investing more when you are young. The sooner you start getting your financial goals in order and working towards them, the more time you will
have working on your side. Putting time to work is just as important as putting your money to work.
Be specific when lining out your goals. Vague goals are hard to stick with. Clear and concise goals lead you to committed action. Writing out your goals in a specific manner also helps you see them more objectively.
You should refine your goals at least three times in the beginning. This allows you to be more specific each time you write them. Your first goal may be “I want to be wealthy.” While this is a good goal it needs to be more specific. Ask yourself what wealth means to you. Does it mean a large bank account or a lot of investments? Does it mean owning your own company or going on extravagant vacations? The more specific you are, the more you are able to work for your goals.
Think about the goals you've just written down and define them further. Don’t simply say “I want to be wealthy.” Give your goals a purpose and be as specific as you can, “I want to retire early or I want to own my own company.”
For the third phase, write your goals as they will be when accomplished. Get it down to the nitty gritty. An example is: “I own a three bedroom home with a swimming pool. It is in a wealthy neighborhood. My savings are worth $100,000. I accomplished this by saving X amount of dollars each week over a period of X years.”
Take the time to clearly define your goals. Write them as if you have already reached them. Being specific and writing goals as if they have already happened will set them into motion and make them more concrete.
Your next step will be to think ahead about the conflicts and obstacles you will face in reaching your goals. Decide what your highest priorities will be and focus on those. It’s also a safe measure to put a little back for unseen emergencies as well. There will be times when your second or third priorities have to take a back seat for a little while. Expect this and plan for it so you won’t be devastated when it happens. Making your money work for you is an assurance that those priorities are only put on hold for a little while.
Devising a plan of action.
Give each specific goal a plan of action. This needs to be worked out step by step so that you’ll know what it will take to reach each goal. Some financial advisors suggest it’s easier to determine how to attain your goals than it is to define them. You should decide how much money needs to be put back each week or month to reach the amount you want at retirement. Decide where and how you will invest some of your money taking the risks, rewards and earnings of each investment into consideration. This is an important step in coming up with your plan of action.
You should reassess your goals often so you’ll know whether you are on track or not. It will also help in case some of your goals change at a later date. If something doesn’t work out, use that as a way to learn what went wrong.
Always concentrate more on your accomplishments than your failures. Failures are merely tests of determination. If you are making progress you will face adversity. Something will always come up. Adversity contains the seeds of hope that we need to carry out our plans.
The following are some simple suggestions to help you gain an understanding of your money, what it needs to do and how to take the first steps to make it work for you. This article is not a step-by-step guide for saving or investing, it is a simple guideline to get you in the right mind-set with your money.
What Money Can and Can’t Do.
Money can pay for an education, pay for nice cars, homes, fund vacations, and sporting events. Money cannot buy love, friendship, peace, happiness or knowledge. It can fund the education but cannot buy the knowledge and plant it into your mind. Money cannot buy your values or self-esteem. But money is directly related to your values and your self-esteem. It has been said that, “the love of money is the root of all evil.” This is simply not true. It’s the greed that leads to evil-doing of men. You can love and respect money without being greedy. You can have the mind-set of drawing money to you without being greedy. You have to understand money to make it work. Money is a living entity that needs attention just as much as a child does.
You need to be clear about what you want out of your money and be as specific as possible.
Things to consider are:
What’s important to you? Giving your children a good education? Having a nice home and car? Paying the bills on time and having money left over?
What makes you happy? Giving your family nice things? Taking a nice vacation every year? Security?
How much money do you want to have? Do you want to retire with an abundance of money? Do you want a lot of investments?
How do you want to spend that money? Cars, boats, summer beach house? Dining in fine restaurants? Home electronics?
What do you want to contribute with your money? Do you want to give to charity?
When you answer these questions you will be revealing your values and ambitions. These need to be clear and precise. Obstacles may slow you down but, once you have direction and purpose, you will be able to overcome
those obstacles and move forward.
You need focused direction to give it power. If your direction is not focused it will not have the power it needs to make your money work for you.
Define your priorities for your financial goals.
Financial success comes from making your money work. This is the basic foundation of all wealthy people. They have learned how to make their money work for them thus resulting in a strong financial foundation.
If you do not set financial priorities you will not increase your net worth. Setting aside money is always the best bet. Saving money should be treated like any other bill. Sometimes this is difficult when the only person holding you accountable for this “payment” is yourself. No collector will call, there will be no late charges deducted from your savings if you don’t pay it on time. But the end result will be not having enough money for retirement. In a sense, not planning for retirement will be like tons of late fees being heaped on you at once, because there won't be any money set aside when you retire.
Know what you want to attain with your money.
Never allow circumstances to direct your spending habits. You have to be in charge of your money to make it work for you. Money is like anything else, if it doesn’t have an objective it will be used on whatever comes along. You need financial goals in place to avoid watching your money go out the window. If you walk into a store without a plan of which items to buy and the amount of money you want to spend, you will end up with a lot of frivolous purchases that waste your money.
At first you may need to keep track of every penny until you realize just where your money goes. One trip to a convenience store can cost you well over $5. If you stop at the convenience store several times a week, you could be looking at the amount of money needed each week for your retirement plans.
Time and consistency are very important for financial wealth. Time will help compensate for not having much extra money to put back. A little put back over a larger time frame works to your advantage.
You increase your options, your confidence and your security by saving and investing more when you are young. The sooner you start getting your financial goals in order and working towards them, the more time you will
have working on your side. Putting time to work is just as important as putting your money to work.
Be specific when lining out your goals. Vague goals are hard to stick with. Clear and concise goals lead you to committed action. Writing out your goals in a specific manner also helps you see them more objectively.
You should refine your goals at least three times in the beginning. This allows you to be more specific each time you write them. Your first goal may be “I want to be wealthy.” While this is a good goal it needs to be more specific. Ask yourself what wealth means to you. Does it mean a large bank account or a lot of investments? Does it mean owning your own company or going on extravagant vacations? The more specific you are, the more you are able to work for your goals.
Think about the goals you've just written down and define them further. Don’t simply say “I want to be wealthy.” Give your goals a purpose and be as specific as you can, “I want to retire early or I want to own my own company.”
For the third phase, write your goals as they will be when accomplished. Get it down to the nitty gritty. An example is: “I own a three bedroom home with a swimming pool. It is in a wealthy neighborhood. My savings are worth $100,000. I accomplished this by saving X amount of dollars each week over a period of X years.”
Take the time to clearly define your goals. Write them as if you have already reached them. Being specific and writing goals as if they have already happened will set them into motion and make them more concrete.
Your next step will be to think ahead about the conflicts and obstacles you will face in reaching your goals. Decide what your highest priorities will be and focus on those. It’s also a safe measure to put a little back for unseen emergencies as well. There will be times when your second or third priorities have to take a back seat for a little while. Expect this and plan for it so you won’t be devastated when it happens. Making your money work for you is an assurance that those priorities are only put on hold for a little while.
Devising a plan of action.
Give each specific goal a plan of action. This needs to be worked out step by step so that you’ll know what it will take to reach each goal. Some financial advisors suggest it’s easier to determine how to attain your goals than it is to define them. You should decide how much money needs to be put back each week or month to reach the amount you want at retirement. Decide where and how you will invest some of your money taking the risks, rewards and earnings of each investment into consideration. This is an important step in coming up with your plan of action.
You should reassess your goals often so you’ll know whether you are on track or not. It will also help in case some of your goals change at a later date. If something doesn’t work out, use that as a way to learn what went wrong.
Always concentrate more on your accomplishments than your failures. Failures are merely tests of determination. If you are making progress you will face adversity. Something will always come up. Adversity contains the seeds of hope that we need to carry out our plans.
Increase Your Savings with Short Term Financial Goals
In difficult financial times, it is more important than ever to save your money. A small savings will help you pay for unexpected emergencies like car trouble and health problems, but the general recommendation is to
save 3-6 months of expenses. With a sagging economy, you never know when you might lose your job or see a cut in your hours.
You may have a financial goal to save up three months of expenses in the next 12 months. Just for an example, let's say you have $2,000 in expenses a month. Your goal, then, is to save $6,000.
A recent study by Rice University and Old Dominion University discovered that people are more likely to meet their long-term financial goals if they set short-term financial goals to get there. In our example, if you wanted to save three months of expenses in 12 months, you are more likely to reach your goals if you break your savings goals into shorter time periods.
You can set your goal of saving $6,000 into 12 monthly goals of $500 each. That might work well for you. Breaking your goal into bi-weekly goals of $250, or a weekly goal of saving $125, might also be easy. By breaking your goal into short-term goals, you might also see that this goal is too difficult to reach. Perhaps you are living on a tighter budget and can only manage to save $65 a week. By breaking your goal into monthly or weekly goals, you will realize that without earning extra income, it will take you almost two years to save enough money to reach your goal. You can also choose to start with a smaller savings goal, such as setting aside $1,000 to pay for unexpected expenses like car repairs.
If you set a savings goal, you should consider putting your savings into a separate account. If you mix your long-term savings with your regular spending money, you might see that extra money in your account and be tempted to spend it. Many banks will allow you to easily transfer money between accounts online, even if you are using different banks. Free financial software is available at places like Mint.com that can help you track the money in all of your accounts in one place.
Whether you are saving a small emergency fund, a larger expense in case of a layoff, or even for that trip to Europe that you've always wanted to take, setting short-term goals will make it more likely that you will
get there. Saving money often takes sacrifice, but consistently taking steps to reach your goal is often better than intermittently working to get there.
Sources:
Maxwell, Kristin. "Save More Money: A Simple Trick". Shape. February 2009, p. 27.
Serra, Dan. "Short-term Financial Goals May Be More Reachable." Catholic Online. http://www.catholic.org/finance/finance_story.php?id=29345
save 3-6 months of expenses. With a sagging economy, you never know when you might lose your job or see a cut in your hours.
You may have a financial goal to save up three months of expenses in the next 12 months. Just for an example, let's say you have $2,000 in expenses a month. Your goal, then, is to save $6,000.
A recent study by Rice University and Old Dominion University discovered that people are more likely to meet their long-term financial goals if they set short-term financial goals to get there. In our example, if you wanted to save three months of expenses in 12 months, you are more likely to reach your goals if you break your savings goals into shorter time periods.
You can set your goal of saving $6,000 into 12 monthly goals of $500 each. That might work well for you. Breaking your goal into bi-weekly goals of $250, or a weekly goal of saving $125, might also be easy. By breaking your goal into short-term goals, you might also see that this goal is too difficult to reach. Perhaps you are living on a tighter budget and can only manage to save $65 a week. By breaking your goal into monthly or weekly goals, you will realize that without earning extra income, it will take you almost two years to save enough money to reach your goal. You can also choose to start with a smaller savings goal, such as setting aside $1,000 to pay for unexpected expenses like car repairs.
If you set a savings goal, you should consider putting your savings into a separate account. If you mix your long-term savings with your regular spending money, you might see that extra money in your account and be tempted to spend it. Many banks will allow you to easily transfer money between accounts online, even if you are using different banks. Free financial software is available at places like Mint.com that can help you track the money in all of your accounts in one place.
Whether you are saving a small emergency fund, a larger expense in case of a layoff, or even for that trip to Europe that you've always wanted to take, setting short-term goals will make it more likely that you will
get there. Saving money often takes sacrifice, but consistently taking steps to reach your goal is often better than intermittently working to get there.
Sources:
Maxwell, Kristin. "Save More Money: A Simple Trick". Shape. February 2009, p. 27.
Serra, Dan. "Short-term Financial Goals May Be More Reachable." Catholic Online. http://www.catholic.org/finance/finance_story.php?id=29345
Establishing Financial Goals May Be More Important Than the Financial Plan
For individuals seeking to invest in the stock market, financial advisors always recommend to first become prepared to plan and establish specific needs and goals. In most financial plans, having a financial goal is
almost more important than the financial plan itself. It is the financial goal that puts the drive and motivation into the investment portfolio. So, how does one go about setting a financial goal?
Goal setting is rather simple when broken into a few easy steps. First, the financial investment which leads to the financial goal must be measurable. In other words, it must be an investment that can be tracked and monitored to ensure progress is underway. While investing in the stock market is certainly measurable, there are some financial investments which may not be measurable, resulting in loss of focus or direction in meeting your financial goal. Often, individual investors will place some of their financial wealth into start up businesses for which they are not privy to the information regarding financial progress and failures. This would be an example of a non-measurable financial goal. Investing in a company for which regular financial feedback is not provided on your investment return and success of the operation, would not be a measurable investment.
Beyond measurements of success when setting a financial goal it is important to be specific with regard to the outcome realistically expected. The operative word here is, realistically. Expecting to make $30 million off of a $50 investment is not realistic. In other words, sit down and establish what the financial goal is and be specific as to how you might achieve that financial goal. Who will be your partners? Will the goal be achieved in a particular location or among a specific organization or will this goal be something you work, alone, in the privacy of your home?
As part of the financial goal, once the location and players are identified, it is important to set out a realistic timeline for financial goal achievement. When considering a timeline for completion, also be sure to
incorporate factors which may cause delay or set back attaining a financial goal. By incorporating the most foreseeable constraints, you can better establish a realistic financial goal completion date.
And finally, be sure your financial goal is tangible. A financial goal that can be seen or touched is always a great motivation and driver behind your financial plan. For example, if your goal is to purchase the yacht you always wanted, you will want to expose yourself to yachts on a regular basis so as to keep your motivation and drive in full force. As part of your overall financial goal statement, be sure to state why achieving this goal is important to you and your family. What are the benefits for achieving the financial outcome?
Placing these simple techniques into place will ensure not only a financial goal is established but also a realistic and profitable financial plan accompanies it. When in doubt as to what your financial goal, or financial plan, should be consider engaging a financial mentor; those with whom you can identify a similar pattern in financial goal achievement.
almost more important than the financial plan itself. It is the financial goal that puts the drive and motivation into the investment portfolio. So, how does one go about setting a financial goal?
Goal setting is rather simple when broken into a few easy steps. First, the financial investment which leads to the financial goal must be measurable. In other words, it must be an investment that can be tracked and monitored to ensure progress is underway. While investing in the stock market is certainly measurable, there are some financial investments which may not be measurable, resulting in loss of focus or direction in meeting your financial goal. Often, individual investors will place some of their financial wealth into start up businesses for which they are not privy to the information regarding financial progress and failures. This would be an example of a non-measurable financial goal. Investing in a company for which regular financial feedback is not provided on your investment return and success of the operation, would not be a measurable investment.
Beyond measurements of success when setting a financial goal it is important to be specific with regard to the outcome realistically expected. The operative word here is, realistically. Expecting to make $30 million off of a $50 investment is not realistic. In other words, sit down and establish what the financial goal is and be specific as to how you might achieve that financial goal. Who will be your partners? Will the goal be achieved in a particular location or among a specific organization or will this goal be something you work, alone, in the privacy of your home?
As part of the financial goal, once the location and players are identified, it is important to set out a realistic timeline for financial goal achievement. When considering a timeline for completion, also be sure to
incorporate factors which may cause delay or set back attaining a financial goal. By incorporating the most foreseeable constraints, you can better establish a realistic financial goal completion date.
And finally, be sure your financial goal is tangible. A financial goal that can be seen or touched is always a great motivation and driver behind your financial plan. For example, if your goal is to purchase the yacht you always wanted, you will want to expose yourself to yachts on a regular basis so as to keep your motivation and drive in full force. As part of your overall financial goal statement, be sure to state why achieving this goal is important to you and your family. What are the benefits for achieving the financial outcome?
Placing these simple techniques into place will ensure not only a financial goal is established but also a realistic and profitable financial plan accompanies it. When in doubt as to what your financial goal, or financial plan, should be consider engaging a financial mentor; those with whom you can identify a similar pattern in financial goal achievement.
College Tips: How to Secure Financial Aid
According to MSNBC, “Nearly 70 percent of students attending four-year schools pay less than $8,000 for tuition and fees, according to the College Board, a not-for-profit membership association that is composed of more than 4,700 schools, colleges, universities, and other educational organizations.” Needless to say, for many students, financial aid is the only chance they have of going to college. For others it means the difference between being able to concentrate on studies and working part to full time while attending college.
While I found it character building to go to college while working two or more jobs, I would not recommend it for the average student. Many who take that route do not make it.
Here are some resources you can use to get financial aid for college:
You are eligible for financial aid if
• You qualify for financial need (in most cases).
• You have a high school diploma or a General Education Development (GED) certificate, pass a test approved by the U.S. Department of Education, and meet other standards your state establishes that the Department approves, or complete a high school education in a home school setting that is treated as such under state law.
• You are working toward a degree or certificate in an eligible program.
• You are a U.S. citizen or eligible non-citizen.
• You have a valid Social Security Number (with a few exceptions).
• You register with the Selective Service if required.
• Maintain satisfactory academic progress once in school.
• You certify that you are not in default on a federal student loan and do not owe money on a federal student grant.
• You certify that you will use federal student aid only for educational purposes.
To determine if you qualify for financial need for your student loan, use the calculator at http://www.finaid.org/
You can get the application for Federal Student Aid at (http://www.fafsa.ed.gov).
You can get help completing the FAFSA at http://studentaid.ed.gov where instruction and phone numbers are provided.
You can get more answers for your student aid related questions at the Federal Student Aid Information Center at 1-800-4-FEDAID (1-800-433-3243) or TTY: 1-800-730-8913 or 1-319-337-5665. You can call between hours are 8
am to 12 midnight (Eastern Time) 7 days a week.
* Note: If you know what college you will be attending, get and stay in touch with the financial aid office at the college you are attending as they may require have additional as a part of the financial aid application process. Many schools have additional resources for financial aid as well. Get to know your financial aid officer, and they will keep you informed of any new information you may need.
While I found it character building to go to college while working two or more jobs, I would not recommend it for the average student. Many who take that route do not make it.
Here are some resources you can use to get financial aid for college:
You are eligible for financial aid if
• You qualify for financial need (in most cases).
• You have a high school diploma or a General Education Development (GED) certificate, pass a test approved by the U.S. Department of Education, and meet other standards your state establishes that the Department approves, or complete a high school education in a home school setting that is treated as such under state law.
• You are working toward a degree or certificate in an eligible program.
• You are a U.S. citizen or eligible non-citizen.
• You have a valid Social Security Number (with a few exceptions).
• You register with the Selective Service if required.
• Maintain satisfactory academic progress once in school.
• You certify that you are not in default on a federal student loan and do not owe money on a federal student grant.
• You certify that you will use federal student aid only for educational purposes.
To determine if you qualify for financial need for your student loan, use the calculator at http://www.finaid.org/
You can get the application for Federal Student Aid at (http://www.fafsa.ed.gov).
You can get help completing the FAFSA at http://studentaid.ed.gov where instruction and phone numbers are provided.
You can get more answers for your student aid related questions at the Federal Student Aid Information Center at 1-800-4-FEDAID (1-800-433-3243) or TTY: 1-800-730-8913 or 1-319-337-5665. You can call between hours are 8
am to 12 midnight (Eastern Time) 7 days a week.
* Note: If you know what college you will be attending, get and stay in touch with the financial aid office at the college you are attending as they may require have additional as a part of the financial aid application process. Many schools have additional resources for financial aid as well. Get to know your financial aid officer, and they will keep you informed of any new information you may need.
Financial Aid: Getting Your Grip on Scholarships, Grants, and Student Loans
Remember all those times in the last few years when you wanted to kick your parents out of the house and just live your own life? Well guess what? You're on your own now, so now what? Here's a piece of motherly
advice. Don't screw up! The thing you are now messing with is your life. So let's talk about one of the most important decisions, one of the first decisions you are going to make: your college or technical school education and how to finance it.
The first item of business is deciding if right now is the right time for you to go to college. If you don't have any idea what you want to do with your life, and just want to party, this might not be the best time for you to go to school. First-time college students are notorious for dropping out in the middle of the first or second semester. You don't want to do that. Why not? Because those who drop out in few weeks or months generally end up owing for all or part of the loan funds they received, and may even owe grant funds back to the government—and with nothing to show for it, not even a few credits.
But let's assume that you are a levelheaded individual who knows what you want to study, and maybe even what you want to do in life. If that is the case, read on, as there are some serious matters you need to consider about your financial future.
The federal government - via the U.S. Department of Education—is currently the largest sources of funding for college students. The best way to learn about the Department's programs is to call the Federal Student Aid Information Center (1-800-4-FED-AID or 1-800-433-3243) and order Funding Education Beyond High School: The Guide to Federal Student Aid, a free booklet. If you're someplace where you can't call a toll-free number, then call 1-319-337-5665, but this will cost you (though no more than any other long distance call. You can also write to
The Federal Student Aid Information Center
P.O. Box 84
Washington, DC 20044-0084
Or you can check out federal aid information at www.studentaid.ed.gov.
If you plan to go to school in the near future, you may as well request the Free Application for Federal Student Aid (FAFSA) when you write or call. Like the title says, it's free: you should never pay anyone to
help you fill out or submit a FAFSA. You can also fill out the FAFSA online at www.fafsa.ed.gov.
Online is the way to go if you're in a hurry; you'll get a response back in a few days rather than in a few weeks. Applying online is becoming the norm.
However you do it, fill out the FAFSA as soon as possible. Schools and state aid agencies have deadlines you must meet to be eligible for state aid or for certain kinds of aid the school controls. (State agencies receive information when you list your state of residence on the FAFSA.)
For example, if you want to start school in September 2006, you should fill out the 2006-07 FAFSA as soon after January 1, 2006 as you can. (You can't fill out that year's application before then.) As you may have guessed, the FAFSA asks for information about your and your parents' incomes. If your parents (or you) don't have your taxes done, estimate your income numbers and send the FAFSA in. You'll be glad you did and you can correct your numbers later.
What happens after you submit your FAFSA? The Department calculates your eligibility for aid and sends this information to the financial aid office of each school you listed on the FAFSA. (Each school that participates in the Department's programs has a financial aid administrator - at least one - who determines what kind of aid you'll get.)
Just filling out a FAFSA generally isn't enough to get aid. Naturally, you need to be admitted to that school, but you may also have to fill out an aid form your school provides. If you have questions, contact your school.
After you've submitted the FAFSA and done whatever else the school wants, that's when they'll finally show you -or at least tell you about—the money. Generally, the school will send you an award
letter, telling you what kinds and how much aid you'll get.) Knowing how much college costs, the financial aid administrator will try first to award you as many grants as you can get. Just in case there's any question, grants are FREE MONEY YOU DON'T HAVE TO PAY BACK. If your FAFSA results say you have enough financial need (and you take enough hours, etc.), you'll get a Federal Pell Grant. The maximum award during the 2006-07 award year is $4,050. If you apply early enough and your school has enough funds, you may also get a Federal Supplementary Education Opportunity Grant (FSEOG). The maximum amount is $4000. But since the school determines your eligibility for this award, there's no guaranty you'll get that.
Not a grant, but also helpful, is Federal-Work Study (FWS). As the name implies, you work for these funds. The school grants you a job and you get an hourly wage, rather than a lump sum award. The amount you get depends on your award—and how many hours you work.
There are two new federal grants available for the first time during the 2006-07 school year. They are available to first-year students (freshmen) who graduated from high school in January 2006 or for second year students (sophomores) who graduated in January 2005.
An Academic Competitiveness Grant will give up to $750 for first year students, or up to $1,300 to second year students who are eligible for Federal Pell Grants and who successfully finished a "rigorous high school program." The student's state or local education agency determines just how rigorous this program was. Second year students must also have had a Grade Point Average (GPA) of at least 3.0.
The second new award, the National SMART Grant, will provide up to $4,000 for each of your third and fourth years of study as an undergraduate student—if you are majoring in certain areas. Note that SMART here stands for "Science and Mathematics Access to Retain Talent": So naturally, students who major in physical, life, or computer sciences, math, technology or engineering will be eligible. A student can also qualify if he or she majors in a foreign language considered critical to national security. The student must also have a 3.0 GPA in the courses he or she takes to complete his or her major.
Note that these last two are new, and some details are probably still being worked out. So, again, ask your school's financial aid administrator if you have questions.
Regarding scholarships: scholarships were never a big part of the U.S. Department of Education's picture but that doesn't mean there isn't value here. In fact for most students who wont qualify for grants, this is the main source of money for school that will not have to be paid back.
Most of us are familiar with scholarships for academic achievement, athletic performance, or outstanding skill in the performance arts. However there are hundreds if not thousands of scholarships out there for many
different kinds of talents, and also for people of certain ethnicity, geographic location, or for students studying a specific major. For instance you might find a loan for sons of Irish firefighters, or For Latvian students living in Appalachia who will be studying bioengineering.
Go to your guidance counselor, but don't stop there! Remember you are on a quest for FREE MONEY;. Search the Internet, inquire at church groups, ethnic associations, rotary clubs, and trade unions; leave no stone unturned. Think about what makes you unique, and follow that lead.
Here are some links to get started on a general search.
www.collegeview.com
www.edamerica.net/money/scholarships/default.aspx
www.ecampustours.com/payingcollege/scholarships/freescholarshipsearch.aspx
But of course grants and scholarships are probably not going to cover the entire cost of your education, which brings us to the dreaded student loan, which must be paid back. Sounds basic, but you'd be surprised at the number of people who've signed a promissory note - the legal contract that gets you a loan - who thought it was a grant.
First of all you need to understand that a student loan, like any loan, is a calculated risk. You're taking a risk that you're going to be able to pay it back. It's a risk that pays off well for most people, because those who go to college usually earn more, much more, than those who don't. But it's still a risk. So don't borrow any more than you need.
You also need to know how interest works. A typical freshman receives a Stafford Loan for $2,625. Now interest rates have been low in recent years. For example, it was 5.3 percent during the 2005-06 fiscal year (from the end of June through July 1.) But generally rates are higher, and are slowly climbing back up to their more usual 7 and 8 percent rates.
So let's say you took out a $2,625 Stafford and must repay it at 7 percent. Because interest accrues at a simple annual rate, this loan will accrue about $174 in interest per year. (Multiply this by the 7, 8, or 9
more loans an undergrad typically borrowers.) If no payments are made that year, your loan will grow from $2,625 to almost $2,800.
If you have to get loans, Federal Perkins Loans are the best. These have historically had the lowest interest rates (5 percent for many years). They can also be canceled for more reasons than Stafford Loans can. But the most you can get per year is $4,000 as an undergrad. Whether you get them at all depends on your financial need and the school's funds for this program. Because this program depends much on the school's policies, be sure to file your FAFSA early if you want this loan.
But most students have to take out Staffords. If your school participates in the William D. Ford Direct Loan program, you'll borrow Direct Stafford Loans directly from the U.S. Department of Education. If your school doesn't participate, you'll borrow a Federal Family Education Loan (FFEL) Stafford Loan from a commercial lender. (As far as the borrower is concerned, the loan terms are similar.)
Your financial aid administrator will start by giving you a subsidized Stafford Loan. These are best, because the government pays the interest on subsidized federal student loans while you are in school and during authorized deferments. For unsubsidized Staffords, you must pay all interest from the day the loan is disbursed (paid out), though you won't have to start making payments until after you finish your education.
As mentioned previously, a freshman can typically get a $2,625 subsidized loan. If needed, he or she may be able to borrow $4,000 in unsubsidized loans. (The amount you can borrow goes up every year.) If that isn't enough to cover your expenses, your parent may be able to borrow a PLUS Loan on top of that. The amount your parents can borrow is your cost of attendance (as determined by your school) minus the other loans, grants and scholarships you've already received.
Every year, millions of Americans have to take out a loan of some kind to complete their higher educations. But be wise. Understand interest, and get the best package you can.
And while you are on your way don't forget to hit up the relatives, as they may be willing to give private loans with much lower interest, or no interest at all. And if all your relatives are deadbeats be the first to kick butt and take names. Get a job, work your fingers to the bones, and show them all what you are made of. The best revenge is success.
So lets sum all this up:
· Grants are need based and do not have to be paid back
· Scholarships are based on achievement or other qualifying factors and also do not need to be paid back.
· Do not expect that Grants and Scholarships to cover everything, most people do need to take out some form of student loan to complete their education.
· You will have to pay your student loan back even if you do not get the job you want. You will have to pay your student loan back even if you do not make the amount of money you expected. You will have to pay your student loan back even if you do not complete your education.
The ball is in your court now. The next step is to do some research. You are going to have to do some legwork. Remember it's YOUR future that you are creating. These choices are going to create a big part of the foundation for what house you are able to buy, what car you can afford, and what clothes you will be able to wear. But you don't need to be afraid, just motivated and well informed. If you know what you are facing, you will be up to the challenge.
Whatever your course, whatever your lot in life. You WILL get out of it what you put into it. And that's a good thing- so good luck and go to it!
advice. Don't screw up! The thing you are now messing with is your life. So let's talk about one of the most important decisions, one of the first decisions you are going to make: your college or technical school education and how to finance it.
The first item of business is deciding if right now is the right time for you to go to college. If you don't have any idea what you want to do with your life, and just want to party, this might not be the best time for you to go to school. First-time college students are notorious for dropping out in the middle of the first or second semester. You don't want to do that. Why not? Because those who drop out in few weeks or months generally end up owing for all or part of the loan funds they received, and may even owe grant funds back to the government—and with nothing to show for it, not even a few credits.
But let's assume that you are a levelheaded individual who knows what you want to study, and maybe even what you want to do in life. If that is the case, read on, as there are some serious matters you need to consider about your financial future.
The federal government - via the U.S. Department of Education—is currently the largest sources of funding for college students. The best way to learn about the Department's programs is to call the Federal Student Aid Information Center (1-800-4-FED-AID or 1-800-433-3243) and order Funding Education Beyond High School: The Guide to Federal Student Aid, a free booklet. If you're someplace where you can't call a toll-free number, then call 1-319-337-5665, but this will cost you (though no more than any other long distance call. You can also write to
The Federal Student Aid Information Center
P.O. Box 84
Washington, DC 20044-0084
Or you can check out federal aid information at www.studentaid.ed.gov.
If you plan to go to school in the near future, you may as well request the Free Application for Federal Student Aid (FAFSA) when you write or call. Like the title says, it's free: you should never pay anyone to
help you fill out or submit a FAFSA. You can also fill out the FAFSA online at www.fafsa.ed.gov.
Online is the way to go if you're in a hurry; you'll get a response back in a few days rather than in a few weeks. Applying online is becoming the norm.
However you do it, fill out the FAFSA as soon as possible. Schools and state aid agencies have deadlines you must meet to be eligible for state aid or for certain kinds of aid the school controls. (State agencies receive information when you list your state of residence on the FAFSA.)
For example, if you want to start school in September 2006, you should fill out the 2006-07 FAFSA as soon after January 1, 2006 as you can. (You can't fill out that year's application before then.) As you may have guessed, the FAFSA asks for information about your and your parents' incomes. If your parents (or you) don't have your taxes done, estimate your income numbers and send the FAFSA in. You'll be glad you did and you can correct your numbers later.
What happens after you submit your FAFSA? The Department calculates your eligibility for aid and sends this information to the financial aid office of each school you listed on the FAFSA. (Each school that participates in the Department's programs has a financial aid administrator - at least one - who determines what kind of aid you'll get.)
Just filling out a FAFSA generally isn't enough to get aid. Naturally, you need to be admitted to that school, but you may also have to fill out an aid form your school provides. If you have questions, contact your school.
After you've submitted the FAFSA and done whatever else the school wants, that's when they'll finally show you -or at least tell you about—the money. Generally, the school will send you an award
letter, telling you what kinds and how much aid you'll get.) Knowing how much college costs, the financial aid administrator will try first to award you as many grants as you can get. Just in case there's any question, grants are FREE MONEY YOU DON'T HAVE TO PAY BACK. If your FAFSA results say you have enough financial need (and you take enough hours, etc.), you'll get a Federal Pell Grant. The maximum award during the 2006-07 award year is $4,050. If you apply early enough and your school has enough funds, you may also get a Federal Supplementary Education Opportunity Grant (FSEOG). The maximum amount is $4000. But since the school determines your eligibility for this award, there's no guaranty you'll get that.
Not a grant, but also helpful, is Federal-Work Study (FWS). As the name implies, you work for these funds. The school grants you a job and you get an hourly wage, rather than a lump sum award. The amount you get depends on your award—and how many hours you work.
There are two new federal grants available for the first time during the 2006-07 school year. They are available to first-year students (freshmen) who graduated from high school in January 2006 or for second year students (sophomores) who graduated in January 2005.
An Academic Competitiveness Grant will give up to $750 for first year students, or up to $1,300 to second year students who are eligible for Federal Pell Grants and who successfully finished a "rigorous high school program." The student's state or local education agency determines just how rigorous this program was. Second year students must also have had a Grade Point Average (GPA) of at least 3.0.
The second new award, the National SMART Grant, will provide up to $4,000 for each of your third and fourth years of study as an undergraduate student—if you are majoring in certain areas. Note that SMART here stands for "Science and Mathematics Access to Retain Talent": So naturally, students who major in physical, life, or computer sciences, math, technology or engineering will be eligible. A student can also qualify if he or she majors in a foreign language considered critical to national security. The student must also have a 3.0 GPA in the courses he or she takes to complete his or her major.
Note that these last two are new, and some details are probably still being worked out. So, again, ask your school's financial aid administrator if you have questions.
Regarding scholarships: scholarships were never a big part of the U.S. Department of Education's picture but that doesn't mean there isn't value here. In fact for most students who wont qualify for grants, this is the main source of money for school that will not have to be paid back.
Most of us are familiar with scholarships for academic achievement, athletic performance, or outstanding skill in the performance arts. However there are hundreds if not thousands of scholarships out there for many
different kinds of talents, and also for people of certain ethnicity, geographic location, or for students studying a specific major. For instance you might find a loan for sons of Irish firefighters, or For Latvian students living in Appalachia who will be studying bioengineering.
Go to your guidance counselor, but don't stop there! Remember you are on a quest for FREE MONEY;. Search the Internet, inquire at church groups, ethnic associations, rotary clubs, and trade unions; leave no stone unturned. Think about what makes you unique, and follow that lead.
Here are some links to get started on a general search.
www.collegeview.com
www.edamerica.net/money/scholarships/default.aspx
www.ecampustours.com/payingcollege/scholarships/freescholarshipsearch.aspx
But of course grants and scholarships are probably not going to cover the entire cost of your education, which brings us to the dreaded student loan, which must be paid back. Sounds basic, but you'd be surprised at the number of people who've signed a promissory note - the legal contract that gets you a loan - who thought it was a grant.
First of all you need to understand that a student loan, like any loan, is a calculated risk. You're taking a risk that you're going to be able to pay it back. It's a risk that pays off well for most people, because those who go to college usually earn more, much more, than those who don't. But it's still a risk. So don't borrow any more than you need.
You also need to know how interest works. A typical freshman receives a Stafford Loan for $2,625. Now interest rates have been low in recent years. For example, it was 5.3 percent during the 2005-06 fiscal year (from the end of June through July 1.) But generally rates are higher, and are slowly climbing back up to their more usual 7 and 8 percent rates.
So let's say you took out a $2,625 Stafford and must repay it at 7 percent. Because interest accrues at a simple annual rate, this loan will accrue about $174 in interest per year. (Multiply this by the 7, 8, or 9
more loans an undergrad typically borrowers.) If no payments are made that year, your loan will grow from $2,625 to almost $2,800.
If you have to get loans, Federal Perkins Loans are the best. These have historically had the lowest interest rates (5 percent for many years). They can also be canceled for more reasons than Stafford Loans can. But the most you can get per year is $4,000 as an undergrad. Whether you get them at all depends on your financial need and the school's funds for this program. Because this program depends much on the school's policies, be sure to file your FAFSA early if you want this loan.
But most students have to take out Staffords. If your school participates in the William D. Ford Direct Loan program, you'll borrow Direct Stafford Loans directly from the U.S. Department of Education. If your school doesn't participate, you'll borrow a Federal Family Education Loan (FFEL) Stafford Loan from a commercial lender. (As far as the borrower is concerned, the loan terms are similar.)
Your financial aid administrator will start by giving you a subsidized Stafford Loan. These are best, because the government pays the interest on subsidized federal student loans while you are in school and during authorized deferments. For unsubsidized Staffords, you must pay all interest from the day the loan is disbursed (paid out), though you won't have to start making payments until after you finish your education.
As mentioned previously, a freshman can typically get a $2,625 subsidized loan. If needed, he or she may be able to borrow $4,000 in unsubsidized loans. (The amount you can borrow goes up every year.) If that isn't enough to cover your expenses, your parent may be able to borrow a PLUS Loan on top of that. The amount your parents can borrow is your cost of attendance (as determined by your school) minus the other loans, grants and scholarships you've already received.
Every year, millions of Americans have to take out a loan of some kind to complete their higher educations. But be wise. Understand interest, and get the best package you can.
And while you are on your way don't forget to hit up the relatives, as they may be willing to give private loans with much lower interest, or no interest at all. And if all your relatives are deadbeats be the first to kick butt and take names. Get a job, work your fingers to the bones, and show them all what you are made of. The best revenge is success.
So lets sum all this up:
· Grants are need based and do not have to be paid back
· Scholarships are based on achievement or other qualifying factors and also do not need to be paid back.
· Do not expect that Grants and Scholarships to cover everything, most people do need to take out some form of student loan to complete their education.
· You will have to pay your student loan back even if you do not get the job you want. You will have to pay your student loan back even if you do not make the amount of money you expected. You will have to pay your student loan back even if you do not complete your education.
The ball is in your court now. The next step is to do some research. You are going to have to do some legwork. Remember it's YOUR future that you are creating. These choices are going to create a big part of the foundation for what house you are able to buy, what car you can afford, and what clothes you will be able to wear. But you don't need to be afraid, just motivated and well informed. If you know what you are facing, you will be up to the challenge.
Whatever your course, whatever your lot in life. You WILL get out of it what you put into it. And that's a good thing- so good luck and go to it!
Making the Most of Student Financial Aid
As parents begin the process of completing financial aid applications for their children, it is important that they have some basic information about the process. The amount of financial aid received often influences
the decision as to where a child goes to college. The information contained in this article should help parents to maximize their child’s chances for receiving financial aid.
What is financial aid?
There are many types of financial assistance. Most types fall under the categories of scholarships and grants, educational loans and employment opportunities. Scholarships and grants are “gifts”. They are generally given to students on the basis of academic potential or financial need to help them meet educational costs. These kinds of awards do not have to be repaid by the student.
Educational loans include a number of different borrowing programs from various lending agencies. The student or parent must agree to repay the loan. Interest rates on educational loans are usually lower than those of regular consumer loans and the repayment periods are longer. With some loans, repayment begins while one is still attending school. Other loans defer repayment until after a student has completed their program.
Employment opportunities are another source of financial aid. The College work Study Program is a form of aid that allows a student to work on campus and earn a designated dollar amount per semester to be applied to his/her expenses. Educational loans and work-study are often referred to as “self help”.
Where does the money come from?
The federal government provides money for various grant, loan and work programs. These funds are allocated to students by their school on the basis of financial need. In addition, states like Pennsylvania provide eligible resident students with grant money.
The college/university you attend is also a source of financial aid. Funds can be awarded on the basis of academics, athletics, or financial need. Academic scholarships are normally offered to entering freshman through
the college’s office of admissions, often upon recommendation from their high school principal or counselor. Performance awards such as are given in music and art programs are based on an audition or presentation of a portfolio of the student’s artwork. Other major sources of funding are private organizations, professional associations, civic and community groups, churches and synagogues. Finding out about these programs involves research. Libraries are a good source of reference material. Another excellent source is your high school counselor. You can also go to one of the many College Access Centers around the city. These centers are affiliated with the School District of Philadelphia and offer an on-line scholarship service at no cost to the student. Also, don’t be afraid to make use of the financial aid professionals at the school you plan to attend. They are a storehouse for information and they are there to help.
How do I qualify for financial aid?
In most cases financial aid is awarded on the basis of financial need. Need is not simply determined by family income. It is dependent upon a number of factors such as the value of your assets and the number of children in college. Financial need is calculated using the information you supply on a Financial Aid Form or the Pennsylvania higher Education Assistance Agency’s combined state/federal application. The need-analysis process requires that each family supply information about its income, assets, expenses and liabilities, along with other data. The data is then reviewed in order to determine an accurate picture of the family’s financial situation. From the assessment of the parents’ ability to contribute to their child’s educational expenses, an expected parental contribution is derived. In addition, the student’s income and assets are also reviewed. From this information a student contribution is assessed. Generally, a higher percentage of the student’s income, and assets are calculated as available to be used for his/her educational expenses.
What can I do to improve my chances of getting financial aid?
Here are a few pointers to keep in mind when you begin the process for applying for assistance:
1. Apply on time! Make sure that your application is received before the school’s deadline. Late students receive consideration only if there are funds available after the “on time” applications are processed.
2. Check the school’s requirements. Make sure that you submit ALL the proper documents. An incomplete file will not be processed, thus delaying your ability to make a decision at a school.
3. Ask for an explanation of your financial aid “package”. Schools award dollars in varying fashions based on their individual “packaging philosophy”. This may mean that one school awards a
greater percentage of “self help” than scholarships or grants. Also, some schools factor a loan into your aid package whether or not you intend to actually borrow the money. Scholarships or grants awarded in your first year are not necessarily guaranteed to be given in the next. Find out how your aid was determined.
4. Check the financial aid data you submit before and after processing. Input errors are not uncommon and can result in an inaccurate assessment of need.
5. Document any additional costs you have incurred. Financial aid is distributed based on the information you provide. Higher than usual medical expenses or a loss of employment after an application has been filed may result in a recalculation of a student’s need.
6. Be assertive! After you receive your notification of aid, if it is not enough, file an appeal to the financial aid director/dean. Make an appointment to meet in person to discuss your situation. Don’t be afraid to ask questions. The financial aid office is there to serve you – make use of this service!
Benjamin Franklin once wrote, “an investment in knowledge pays the best interest.” Higher education has been shown to enhance an individual’s lifetime earnings greatly. Financial aid can help you to reach your goal, make sure that you go for every dollar that you can get to make the path to success a smoother one.
the decision as to where a child goes to college. The information contained in this article should help parents to maximize their child’s chances for receiving financial aid.
What is financial aid?
There are many types of financial assistance. Most types fall under the categories of scholarships and grants, educational loans and employment opportunities. Scholarships and grants are “gifts”. They are generally given to students on the basis of academic potential or financial need to help them meet educational costs. These kinds of awards do not have to be repaid by the student.
Educational loans include a number of different borrowing programs from various lending agencies. The student or parent must agree to repay the loan. Interest rates on educational loans are usually lower than those of regular consumer loans and the repayment periods are longer. With some loans, repayment begins while one is still attending school. Other loans defer repayment until after a student has completed their program.
Employment opportunities are another source of financial aid. The College work Study Program is a form of aid that allows a student to work on campus and earn a designated dollar amount per semester to be applied to his/her expenses. Educational loans and work-study are often referred to as “self help”.
Where does the money come from?
The federal government provides money for various grant, loan and work programs. These funds are allocated to students by their school on the basis of financial need. In addition, states like Pennsylvania provide eligible resident students with grant money.
The college/university you attend is also a source of financial aid. Funds can be awarded on the basis of academics, athletics, or financial need. Academic scholarships are normally offered to entering freshman through
the college’s office of admissions, often upon recommendation from their high school principal or counselor. Performance awards such as are given in music and art programs are based on an audition or presentation of a portfolio of the student’s artwork. Other major sources of funding are private organizations, professional associations, civic and community groups, churches and synagogues. Finding out about these programs involves research. Libraries are a good source of reference material. Another excellent source is your high school counselor. You can also go to one of the many College Access Centers around the city. These centers are affiliated with the School District of Philadelphia and offer an on-line scholarship service at no cost to the student. Also, don’t be afraid to make use of the financial aid professionals at the school you plan to attend. They are a storehouse for information and they are there to help.
How do I qualify for financial aid?
In most cases financial aid is awarded on the basis of financial need. Need is not simply determined by family income. It is dependent upon a number of factors such as the value of your assets and the number of children in college. Financial need is calculated using the information you supply on a Financial Aid Form or the Pennsylvania higher Education Assistance Agency’s combined state/federal application. The need-analysis process requires that each family supply information about its income, assets, expenses and liabilities, along with other data. The data is then reviewed in order to determine an accurate picture of the family’s financial situation. From the assessment of the parents’ ability to contribute to their child’s educational expenses, an expected parental contribution is derived. In addition, the student’s income and assets are also reviewed. From this information a student contribution is assessed. Generally, a higher percentage of the student’s income, and assets are calculated as available to be used for his/her educational expenses.
What can I do to improve my chances of getting financial aid?
Here are a few pointers to keep in mind when you begin the process for applying for assistance:
1. Apply on time! Make sure that your application is received before the school’s deadline. Late students receive consideration only if there are funds available after the “on time” applications are processed.
2. Check the school’s requirements. Make sure that you submit ALL the proper documents. An incomplete file will not be processed, thus delaying your ability to make a decision at a school.
3. Ask for an explanation of your financial aid “package”. Schools award dollars in varying fashions based on their individual “packaging philosophy”. This may mean that one school awards a
greater percentage of “self help” than scholarships or grants. Also, some schools factor a loan into your aid package whether or not you intend to actually borrow the money. Scholarships or grants awarded in your first year are not necessarily guaranteed to be given in the next. Find out how your aid was determined.
4. Check the financial aid data you submit before and after processing. Input errors are not uncommon and can result in an inaccurate assessment of need.
5. Document any additional costs you have incurred. Financial aid is distributed based on the information you provide. Higher than usual medical expenses or a loss of employment after an application has been filed may result in a recalculation of a student’s need.
6. Be assertive! After you receive your notification of aid, if it is not enough, file an appeal to the financial aid director/dean. Make an appointment to meet in person to discuss your situation. Don’t be afraid to ask questions. The financial aid office is there to serve you – make use of this service!
Benjamin Franklin once wrote, “an investment in knowledge pays the best interest.” Higher education has been shown to enhance an individual’s lifetime earnings greatly. Financial aid can help you to reach your goal, make sure that you go for every dollar that you can get to make the path to success a smoother one.
Financial Aid for College
Most people who are planning to enroll in college need some form of financial aid in order to handle the rising costs of tuition, textbooks, supplies, and other fees. Fortunately for these perspective students, there
are a number of financial aid options available through colleges, local or state government, and federal programs. These include scholarships, grants, student loans, and the work-study program. While many students are able to get some form of aid, it is exceedingly frustrating for students once they realize how limited their options are, particularly when applying for federal financial aid.
Students often get their first shock when they begin to read the details outlined in the Free Application for Federal Student Aid, better known as the FAFSA. The vast majority of colleges and organizations require that aid seeking students complete one of these forms in order to come up with a financial aid package for those students. Financial aid officers analyze your financial need through examining your income and current tax information. It doesn’t sound so outlandish, right? However, once the applicant gets to the second page of the application, it is startlingly apparent that if he or she does not fit some very specific requirements, the amount of the financial aid package is severely limited.
Once applicants answer some general questions about themselves, they are confronted with a series of seven questions that can “make or break” them in terms of their financial aid award. Students are asked if they are: at least 24 years old, a veteran, enrolling in graduate school, married, have children or other dependents in which they are supporting, and have deceased parents or are/were a ward of the court.
If students answer “no” to all of these questions, they are forced to apply using their parents’ tax information rather than their own. At that point, the financial aid award is largely based on the
EFC, Expected Family Contribution. In other words, the amount of aid students get is directly connected to the amount of money the government estimates their parents will provide them for their education. Obviously, this can cause a number of problems. The applicant first has to figure out who is considered a parent for the purpose of this application. Shockingly, even legal guardians cannot be considered a parent. It does not matter if the student’s parents offer no support at all, or even if the student is living in the parents’ home. Wealthy parents are under no obligation to help their child pay for college, yet their high income is exactly what will keep that child from getting much aid. Another potential problem is that some students do not have relationships with their parents or perhaps the parents do not wish to give the child their tax information. You may be thinking there is a way around this…wrong again. The only way to get out of documenting parents’ tax and income information is if a) the parents are dead or b) the student has documented proof that the parents were abusive.
The limits the FAFSA forces on to college students has become more of an issue recently, and for good reason. Just a few short years ago, the aid application process was not quite as strict. It seems that, like everything else, people who were taking advantage of the system forced the government to enact harsher requirements for financial aid-seeking students. Perhaps changes did need to be made to the aid system, but the current state of the process is not working well for many students. Potential college students, who are young, single, and trying to make it on your own, beware: your independent efforts may not mean much, if anything at all.
are a number of financial aid options available through colleges, local or state government, and federal programs. These include scholarships, grants, student loans, and the work-study program. While many students are able to get some form of aid, it is exceedingly frustrating for students once they realize how limited their options are, particularly when applying for federal financial aid.
Students often get their first shock when they begin to read the details outlined in the Free Application for Federal Student Aid, better known as the FAFSA. The vast majority of colleges and organizations require that aid seeking students complete one of these forms in order to come up with a financial aid package for those students. Financial aid officers analyze your financial need through examining your income and current tax information. It doesn’t sound so outlandish, right? However, once the applicant gets to the second page of the application, it is startlingly apparent that if he or she does not fit some very specific requirements, the amount of the financial aid package is severely limited.
Once applicants answer some general questions about themselves, they are confronted with a series of seven questions that can “make or break” them in terms of their financial aid award. Students are asked if they are: at least 24 years old, a veteran, enrolling in graduate school, married, have children or other dependents in which they are supporting, and have deceased parents or are/were a ward of the court.
If students answer “no” to all of these questions, they are forced to apply using their parents’ tax information rather than their own. At that point, the financial aid award is largely based on the
EFC, Expected Family Contribution. In other words, the amount of aid students get is directly connected to the amount of money the government estimates their parents will provide them for their education. Obviously, this can cause a number of problems. The applicant first has to figure out who is considered a parent for the purpose of this application. Shockingly, even legal guardians cannot be considered a parent. It does not matter if the student’s parents offer no support at all, or even if the student is living in the parents’ home. Wealthy parents are under no obligation to help their child pay for college, yet their high income is exactly what will keep that child from getting much aid. Another potential problem is that some students do not have relationships with their parents or perhaps the parents do not wish to give the child their tax information. You may be thinking there is a way around this…wrong again. The only way to get out of documenting parents’ tax and income information is if a) the parents are dead or b) the student has documented proof that the parents were abusive.
The limits the FAFSA forces on to college students has become more of an issue recently, and for good reason. Just a few short years ago, the aid application process was not quite as strict. It seems that, like everything else, people who were taking advantage of the system forced the government to enact harsher requirements for financial aid-seeking students. Perhaps changes did need to be made to the aid system, but the current state of the process is not working well for many students. Potential college students, who are young, single, and trying to make it on your own, beware: your independent efforts may not mean much, if anything at all.
Financial Aid Resources for College Students
College financial aid has become a necessity for most college students and graduates. Colleges and universities are becoming more expensive, thus putting a financial strain on students and parents. Students who are not
financially able to pay for their tuition can apply for college financial aid from the federal government. There are guidelines that must be met in order to qualify for government assistance, but several thousands of students qualify for the aid and get checks quarterly to pay for their education. When applying for financial aid there are many factors that come into play.
To be eligible to receive federal student aid, students must meet certain requirements. They must be:
· A U.S. citizen or eligible non-citizen
· Registered with Selective Service (see www.sss.gov for more information)
· Attending a participating college
· Working toward a degree or certificate
· Making satisfactory academic progress
Also
· The applicant cannot owe a refund on a federal grant or be in default on a federal education loan
· They must have financial need
· They cannot have any drug convictions
Other requirements may apply. Contact the school's financial aid office for more information.
Formula for Determining Financial Need
Using a “needs analysis” formula the government is able to determine the financial needs of the student. This analysis includes “price of attending,” which consists of tuition, fees, books and living expenses. Then they add expected family contributions, which is figured by assessing the family’s financial situation including income, assets and number of children. After the assessments then financial need is determined and the student is notified of what kinds of assistance is available to them.
The amount of the financial aid award depends on whether or not:
The student goes full-time or part-time
· The student attends school for a full academic year or less
· They believe that they have special circumstances such as unusual medical or dental expenses
If the student believes that they have special circumstances that should be taken into account, such as unusual medical or dental expenses or a significant change in income from one year to the next then the student contact the financial aid administrator at the schools to which they are applying.
Any financial aid a student is eligible to receive will be paid through the school. Typically, the school will first use the aid to pay tuition, fees, and room and board (if provided by the school). Any remaining need is paid to the student for other expenses.
There are different kinds of college financial aid available to college students. The requirements for each program may differ. Some of the aid available is:
Federal Pell Grants
These grants do not have to be repaid and they are available to undergraduate students only. Applications for the Pell Grant can be found at the school’s financial aid office or on the Internet at “www.fafsa.com” . In order to be eligible for these grants students and their parents must meet financial guidelines. They are designed to help families whose children would otherwise not be able to further their education because of financial restraints.
Federal Stafford Loans
These loans must be repaid and are available to undergraduate and graduate students. They have a cap amount that you can borrow. The interest and payments are usually deferred until the student graduates. There are strict rules in order to qualify so each student that is approved must meet the requirements.
Stafford college loans are guaranteed by the government to have a low interest rates and deferred payment options. There are two types of Stafford loans one is the subsidized Stafford loan and the other is the unsubsidized Stafford loan. The government pays the interest on your subsidized Stafford loan until you complete your education, but with the unsubsidized Stafford loan students must pay the interest from the date of origination. In order to qualify for a subsidized loan the student must meet financial requirements and show need for the government’s aid.
PLUS Loans
PLUS college loans are Parent Loans for Undergraduate Students. This loan is designed for parents to be able to cover their child’s education expenses. The credit history of the parent is evaluated and if approved
the payment start 60 days from the approval date. If a parent is looking for a way to cover their child’s college education but they don’t have the funds upfront this is a great option.
Work Study Program
This program may vary by school, but it is essentially designed to help students earn money while attending a college or university. The school provides them with a job so they can earn money to live on and pay tuition.
Perkins Loans
These are low-interest loans that must be repaid after graduation and is typically around $4000 to $6000 for undergraduate and graduate students. Banks and other financial institutions fund these loans.
Campus-Based Programs
Campus-Based Programs are available at participating schools. Different schools will have different resources and programs available to college students. Each school determines their own participation requirements.
Federal Supplemental Educational Opportunity Grants
Federal Supplemental Educational Opportunity Grants are grants available for undergraduates only; awards range from $100-$4,000.
Scholarships
There are all kinds of scholarships for eligible students. Many businesses and foundations offer scholarships through schools and universities. Information about this type of financial assistance is readily accessible in the library or on the Internet.
College financial aid is widely available and there are so many options that it can get confusing. People interested in applying for financial aid should consult with the schools financial aid office in order to explore all options and programs. A financial aid administrator can tell them about student aid available from your state, the school itself, and other sources. The school is required to inform the of its aid procedures and deadlines, and how and when they will receive their aid award. The applicant should keep copies of all financial aid documents and your enrollment agreement.
Free information about federal, state, institutional, and private student aid can be found in the local library's reference section (usually listed under "student aid" or "financial aid").
financially able to pay for their tuition can apply for college financial aid from the federal government. There are guidelines that must be met in order to qualify for government assistance, but several thousands of students qualify for the aid and get checks quarterly to pay for their education. When applying for financial aid there are many factors that come into play.
To be eligible to receive federal student aid, students must meet certain requirements. They must be:
· A U.S. citizen or eligible non-citizen
· Registered with Selective Service (see www.sss.gov for more information)
· Attending a participating college
· Working toward a degree or certificate
· Making satisfactory academic progress
Also
· The applicant cannot owe a refund on a federal grant or be in default on a federal education loan
· They must have financial need
· They cannot have any drug convictions
Other requirements may apply. Contact the school's financial aid office for more information.
Formula for Determining Financial Need
Using a “needs analysis” formula the government is able to determine the financial needs of the student. This analysis includes “price of attending,” which consists of tuition, fees, books and living expenses. Then they add expected family contributions, which is figured by assessing the family’s financial situation including income, assets and number of children. After the assessments then financial need is determined and the student is notified of what kinds of assistance is available to them.
The amount of the financial aid award depends on whether or not:
The student goes full-time or part-time
· The student attends school for a full academic year or less
· They believe that they have special circumstances such as unusual medical or dental expenses
If the student believes that they have special circumstances that should be taken into account, such as unusual medical or dental expenses or a significant change in income from one year to the next then the student contact the financial aid administrator at the schools to which they are applying.
Any financial aid a student is eligible to receive will be paid through the school. Typically, the school will first use the aid to pay tuition, fees, and room and board (if provided by the school). Any remaining need is paid to the student for other expenses.
There are different kinds of college financial aid available to college students. The requirements for each program may differ. Some of the aid available is:
Federal Pell Grants
These grants do not have to be repaid and they are available to undergraduate students only. Applications for the Pell Grant can be found at the school’s financial aid office or on the Internet at “www.fafsa.com” . In order to be eligible for these grants students and their parents must meet financial guidelines. They are designed to help families whose children would otherwise not be able to further their education because of financial restraints.
Federal Stafford Loans
These loans must be repaid and are available to undergraduate and graduate students. They have a cap amount that you can borrow. The interest and payments are usually deferred until the student graduates. There are strict rules in order to qualify so each student that is approved must meet the requirements.
Stafford college loans are guaranteed by the government to have a low interest rates and deferred payment options. There are two types of Stafford loans one is the subsidized Stafford loan and the other is the unsubsidized Stafford loan. The government pays the interest on your subsidized Stafford loan until you complete your education, but with the unsubsidized Stafford loan students must pay the interest from the date of origination. In order to qualify for a subsidized loan the student must meet financial requirements and show need for the government’s aid.
PLUS Loans
PLUS college loans are Parent Loans for Undergraduate Students. This loan is designed for parents to be able to cover their child’s education expenses. The credit history of the parent is evaluated and if approved
the payment start 60 days from the approval date. If a parent is looking for a way to cover their child’s college education but they don’t have the funds upfront this is a great option.
Work Study Program
This program may vary by school, but it is essentially designed to help students earn money while attending a college or university. The school provides them with a job so they can earn money to live on and pay tuition.
Perkins Loans
These are low-interest loans that must be repaid after graduation and is typically around $4000 to $6000 for undergraduate and graduate students. Banks and other financial institutions fund these loans.
Campus-Based Programs
Campus-Based Programs are available at participating schools. Different schools will have different resources and programs available to college students. Each school determines their own participation requirements.
Federal Supplemental Educational Opportunity Grants
Federal Supplemental Educational Opportunity Grants are grants available for undergraduates only; awards range from $100-$4,000.
Scholarships
There are all kinds of scholarships for eligible students. Many businesses and foundations offer scholarships through schools and universities. Information about this type of financial assistance is readily accessible in the library or on the Internet.
College financial aid is widely available and there are so many options that it can get confusing. People interested in applying for financial aid should consult with the schools financial aid office in order to explore all options and programs. A financial aid administrator can tell them about student aid available from your state, the school itself, and other sources. The school is required to inform the of its aid procedures and deadlines, and how and when they will receive their aid award. The applicant should keep copies of all financial aid documents and your enrollment agreement.
Free information about federal, state, institutional, and private student aid can be found in the local library's reference section (usually listed under "student aid" or "financial aid").
Financial Aid Help for College Students
My senior year in college and I get in a car accident. I had to take off a semester and incorporated tons of bills both medical and car. The next semester was coming up quick and though I wish I was still injured I was
not. I now had to face the bills from the accident and school bills.
In desperation I looked online to find scholarships or loans. I found a site that had both and so much more. www.finaid.org is my savior. It is a site that helps you find exactly what a college student needs. It helped me find scholarships based on me and get a loan with low interest rates.
Finaid.com has a scholarship website which leads to you to about 30 other websites based on what you want. It is written out clearly and easy to understand.
It also has a loan, other financial aid area, and financial aid applications. Each area explains everything clearly. It helps every individual, including me, find what they need.
For example:
Free Scholarship Lotteries
Federal and State Government Aid
College-Controlled Aid
Student Profile-Based Aid
Aid for Graduate and Professional School
Aid for Elementary and Secondary School
Aid for Specific Activities
Innovative Programs
There is also a section for Military Aid and Savings. The military aid section has:
US Armed Forces Recruiting Programs
Financial Aid for Veterans and their Dependents
Veterans and the FAFSA
HEROES Act of 2003
Books about Military Scholarships and Financial Aid for Veterans
My favorite area is the calculator. FinAid's custom calculators can help you figure out how much school will cost, how much you need to save and how much aid you'll need.
Overall this website made it a lot easier for me. It relieved a lot of stress and help with me financially incredibly.
not. I now had to face the bills from the accident and school bills.
In desperation I looked online to find scholarships or loans. I found a site that had both and so much more. www.finaid.org is my savior. It is a site that helps you find exactly what a college student needs. It helped me find scholarships based on me and get a loan with low interest rates.
Finaid.com has a scholarship website which leads to you to about 30 other websites based on what you want. It is written out clearly and easy to understand.
It also has a loan, other financial aid area, and financial aid applications. Each area explains everything clearly. It helps every individual, including me, find what they need.
For example:
Free Scholarship Lotteries
Federal and State Government Aid
College-Controlled Aid
Student Profile-Based Aid
Aid for Graduate and Professional School
Aid for Elementary and Secondary School
Aid for Specific Activities
Innovative Programs
There is also a section for Military Aid and Savings. The military aid section has:
US Armed Forces Recruiting Programs
Financial Aid for Veterans and their Dependents
Veterans and the FAFSA
HEROES Act of 2003
Books about Military Scholarships and Financial Aid for Veterans
My favorite area is the calculator. FinAid's custom calculators can help you figure out how much school will cost, how much you need to save and how much aid you'll need.
Overall this website made it a lot easier for me. It relieved a lot of stress and help with me financially incredibly.
How California College Students Can Get Free Financial AID
If you’re a student attending a local University or Community College in California you can qualify to receive financial Aid. There are many different types of programs that you can qualify for. Some types of
financial aid that you can receive if you qualify for them include grants, scholarships, and loans. One grant that many students qualify and receive is the CALGRANT. These types of grants do not have to be paid back, and are state funded monetary grants. A student can also apply for a student loan which they usually have 10 years to pay it back after they graduate. Scholarship money is also available to students through different programs and schools. Scholarships are money that the students don’t have to pay back and are awarded on high achievements and academics.
To see if you qualify for financial aid all you have to do is fill out and submit a Free Application for Federal Student Aid (FAFSA). You can do this online and it is free of charge. The FAFSA application helps the government determine if you or a student you know can qualify to receive student aid. The information that the Application ask for helps determine a specific amount of money the student needs depending on the student’s income, and their parents income. After filling out the application the student then will receive an e-mail stating the amount or options the student has for aid.
Some students that fill out the FAFSA application receive financial aid that pays for all their college costs. This aid can pay for tuition fees, books, living expenses, food expenses, and other college items. Other students receive student loan offers that help pay for college expenses, but have to be paid back after the student graduates usually within 10 years. If you are a student either attending a California four year University or a California Community College you may qualify to receive these types of student aid. A lot of students don’t know that they may not have to pay for college if they want to go.
One of the main reasons that many prospective students don’t attend college is because they think they can’t afford to, but if you live in California and want to get a
college education you can do so. All you have to do is apply to the college, and fill out a FAFSA. Anyone can fill out a FAFSA and see if you qualify to receive financial aid. There is nothing to lose if you apply for financial aid because it’s free of charge, and if you qualify you can receive free money! Student Aid in California is better than the lottery because the odds of receiving free money are lot better and you can get a great education at no cost to you at the same time. So go online today and fill out a FAFSA application. This will be the best thing you decided to do for your self, and by doing so you have a chance in getting the career you always wanted.
financial aid that you can receive if you qualify for them include grants, scholarships, and loans. One grant that many students qualify and receive is the CALGRANT. These types of grants do not have to be paid back, and are state funded monetary grants. A student can also apply for a student loan which they usually have 10 years to pay it back after they graduate. Scholarship money is also available to students through different programs and schools. Scholarships are money that the students don’t have to pay back and are awarded on high achievements and academics.
To see if you qualify for financial aid all you have to do is fill out and submit a Free Application for Federal Student Aid (FAFSA). You can do this online and it is free of charge. The FAFSA application helps the government determine if you or a student you know can qualify to receive student aid. The information that the Application ask for helps determine a specific amount of money the student needs depending on the student’s income, and their parents income. After filling out the application the student then will receive an e-mail stating the amount or options the student has for aid.
Some students that fill out the FAFSA application receive financial aid that pays for all their college costs. This aid can pay for tuition fees, books, living expenses, food expenses, and other college items. Other students receive student loan offers that help pay for college expenses, but have to be paid back after the student graduates usually within 10 years. If you are a student either attending a California four year University or a California Community College you may qualify to receive these types of student aid. A lot of students don’t know that they may not have to pay for college if they want to go.
One of the main reasons that many prospective students don’t attend college is because they think they can’t afford to, but if you live in California and want to get a
college education you can do so. All you have to do is apply to the college, and fill out a FAFSA. Anyone can fill out a FAFSA and see if you qualify to receive financial aid. There is nothing to lose if you apply for financial aid because it’s free of charge, and if you qualify you can receive free money! Student Aid in California is better than the lottery because the odds of receiving free money are lot better and you can get a great education at no cost to you at the same time. So go online today and fill out a FAFSA application. This will be the best thing you decided to do for your self, and by doing so you have a chance in getting the career you always wanted.
Paying for College Without Financial Aid
I grew up in a family with nine children. Everyone older than me who wanted to went to college with full financial aid. My mother even got a second degree while my two older sisters were getting theirs free of charge. I always assumed I would get the same deal. When it was my turn, however, there were only 4 children left in the house and due to my mother’s degree, she added quite a bit to my father’s income. I did not qualify for financial aid, and with three children still home, my parents did not have enough money to pay for my education. I did however, make it through college.
Here are some things I wish I had known about paying for college without financial aid:
1. If you join a branch of the Armed Forces, your college will then be paid for. ” The U.S. Department of Veterans Affairs administers a number of education benefit programs under the GI Bill. You will find this information at their “GI Bill” website (http://www.gibill.va.gov). Also included on this page are links to documents and forms, which will help veterans, dependents, and school officials with the application process.”
2. You can get a job on campus, which will make working your way through college easier. The federal work-study program provides this opportunity.
3. Apply for every student grant you can get your hands on Use government websites like grants.gov to find grant opportunities. Check with your high school guidance counselors as well.
4. Start an online business. College Student Alex Tex was on his way to his first million at age 21, selling internet real estate one pixel at a time. If you cannot come up with a good original idea that will pay for college while making you a fortune, you may be able to make enough money to cover your room and board on Associated Content or a similar website. Blog about college, sell ads on yours site, give tutor fellow students online. Just be creative.
5. Consider a tuition free college. Some of these are Tuition-free colleges include The Cooper Union in New York, NY; Webb Institute in Glen Cove, NY; Berea College in Berea, KY; College of the Ozarks in Point Lookout,
MO; and Alice Lloyd College in Pippa Passes, KY. You will be required to work however.
6. Continue applying for scholarships and grants. High school seniors are not the only people eligible for college scholarships. Apply for them constantly. You will not get the money if you do not ask for it.
7. Guaranteed Student Loans. This is a last resort. Keep in mind however that if you work while in college you may make yourself ineligible for your student loan. I found myself loan-less my last year in college, and had to work even more than usual to finish.
Here are some things I wish I had known about paying for college without financial aid:
1. If you join a branch of the Armed Forces, your college will then be paid for. ” The U.S. Department of Veterans Affairs administers a number of education benefit programs under the GI Bill. You will find this information at their “GI Bill” website (http://www.gibill.va.gov). Also included on this page are links to documents and forms, which will help veterans, dependents, and school officials with the application process.”
2. You can get a job on campus, which will make working your way through college easier. The federal work-study program provides this opportunity.
3. Apply for every student grant you can get your hands on Use government websites like grants.gov to find grant opportunities. Check with your high school guidance counselors as well.
4. Start an online business. College Student Alex Tex was on his way to his first million at age 21, selling internet real estate one pixel at a time. If you cannot come up with a good original idea that will pay for college while making you a fortune, you may be able to make enough money to cover your room and board on Associated Content or a similar website. Blog about college, sell ads on yours site, give tutor fellow students online. Just be creative.
5. Consider a tuition free college. Some of these are Tuition-free colleges include The Cooper Union in New York, NY; Webb Institute in Glen Cove, NY; Berea College in Berea, KY; College of the Ozarks in Point Lookout,
MO; and Alice Lloyd College in Pippa Passes, KY. You will be required to work however.
6. Continue applying for scholarships and grants. High school seniors are not the only people eligible for college scholarships. Apply for them constantly. You will not get the money if you do not ask for it.
7. Guaranteed Student Loans. This is a last resort. Keep in mind however that if you work while in college you may make yourself ineligible for your student loan. I found myself loan-less my last year in college, and had to work even more than usual to finish.
What Do I Need to Provide to Qualify for a SBA Loan for My Small Business?
The Small Business Administration (SBA) was created around 1953 to assist small businesses. Over the years, it has evolved into networks involving other resources, such as lending, to help find funds for businesses to
grow. SBA loans are more flexible than your traditional loan from a bank. The loans are not totally dependent upon credit score alone. It is best to contact a lender who offers these loans and request a evaluation to see if you can qualify. There are several items you will need to provide.
Financial Statements: Expect to provide financial statement, that will have to be signed off by a CPA. The lender will probably request a minimum of 3 years. Also, be prepared that after you have completed the loan, that you will need to provided updated financial on a regular basis so as to monitor the progress of your business.
Collateral: These loans need to be secured by collateral, usually real estate. It may be a good idea, as commercial property is poised to follow the depression of the housing market, to look at purchasing a location for your business. Rates are low and prices are expected to drop significantly. You may want to even inquire if the lender you are working with may have a foreclosed piece of commercial property that you could purchase within your loan package.
Business Plan: Provide the SBA with a plan of where you business will be in the next coming years, regarding growth, projected expenses, revenues and cash management.
Description of Your Business: Describe what kind of business you are in, sales, length of ownership, owners, and employees. Include on the description why your business needs the loan.
Personal Financial Statements: All personal financial statements need to be provided by all owners, partners of the business and shareholders. Make sure these statements are accurate and true.
Proof of Incorporation: Provide proof that the corporation exist and is current, corporate books and seal.
Proof of Loan Denial: Provide proof that you could not qualify for a traditional loan through a lender.
The loan repayments can be up to 25 years. There are other considerations that need to be meet and you can view more details at www.sba.gov. Qualifying is not difficult so long as you provide all documents requested
and that they are accurate. When dealing with your lender, use them to advise you as you go along the process. Any problems, can only delay your loan. Remember, that there will be certain requirements that will also have to be maintained until the loan is paid off. Continue to use your accountant to help guide you in the financial health of your business.
grow. SBA loans are more flexible than your traditional loan from a bank. The loans are not totally dependent upon credit score alone. It is best to contact a lender who offers these loans and request a evaluation to see if you can qualify. There are several items you will need to provide.
Financial Statements: Expect to provide financial statement, that will have to be signed off by a CPA. The lender will probably request a minimum of 3 years. Also, be prepared that after you have completed the loan, that you will need to provided updated financial on a regular basis so as to monitor the progress of your business.
Collateral: These loans need to be secured by collateral, usually real estate. It may be a good idea, as commercial property is poised to follow the depression of the housing market, to look at purchasing a location for your business. Rates are low and prices are expected to drop significantly. You may want to even inquire if the lender you are working with may have a foreclosed piece of commercial property that you could purchase within your loan package.
Business Plan: Provide the SBA with a plan of where you business will be in the next coming years, regarding growth, projected expenses, revenues and cash management.
Description of Your Business: Describe what kind of business you are in, sales, length of ownership, owners, and employees. Include on the description why your business needs the loan.
Personal Financial Statements: All personal financial statements need to be provided by all owners, partners of the business and shareholders. Make sure these statements are accurate and true.
Proof of Incorporation: Provide proof that the corporation exist and is current, corporate books and seal.
Proof of Loan Denial: Provide proof that you could not qualify for a traditional loan through a lender.
The loan repayments can be up to 25 years. There are other considerations that need to be meet and you can view more details at www.sba.gov. Qualifying is not difficult so long as you provide all documents requested
and that they are accurate. When dealing with your lender, use them to advise you as you go along the process. Any problems, can only delay your loan. Remember, that there will be certain requirements that will also have to be maintained until the loan is paid off. Continue to use your accountant to help guide you in the financial health of your business.
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