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Posts Tagged ‘debt reduction’
Ah, late January… a time of colder temperatures, snuggling around a warm fireplace…and December’s credit card bill waiting like a bomb in your mailbox.
Nightmare!
Did you overspend during the holiday season? If not, many people you know made up for you. According to this Bloomberg Businessweek article, consumer debt rose more in November of last year than it had in 10 years.
Although analysts call this a “good sign” for the economy, doesn’t this statistic frighten you? Weren’t we just talking recently about many people losing their homes because of too much debt? People in the arts, especially, shouldn’t take on debt they can’t afford. In many cases, our income streams bounce around enough that we shouldn’t be spending next month’s paycheck that may never arrive.
But, if you overspent over the holiday season, there’s nothing to do now but clean up the mess. It won’t be easy, but with a good plan and the right tools, you’ll be back on your financial feet in no time. Here are my four steps to curing your credit card hangover: (more…)
Posted in Credit Cards, Debt, Goals, budget | No Comments »
Posted by Miata | January 26th, 2012
 Remember the three little pigs? Sure you do. The moral of the nursery rhyme was simple: build your house right the first time and it won’t be blown over.
In the arts, we’ve all heard this advice before. It’s the quality of our work that brings people back. We’ve watched suspiciously as performers with gimmicks shoot to the heights of fame for a few brief moments; but it’s only quality work that helps ensure a long, prosperous career.
Or in other words, using three little pigs speak: If you’re building your house, make it brick.
I’ve often heard financial planning referred to by professionals as a house. A foundation laid on the sandy ground of debt and scattered income is bound to fall later. For the average person, building consistent, dependable income and paying down debt are jobs number one and two.
But we aren’t average, are we? (more…)
Posted in Banking, Debt, Education, Saving Money, Savings | No Comments »
Posted by Miata | November 17th, 2011
 I was out to dinner the other night with some friends and we were laughing about the questions strangers will ask as soon as they find out your profession. One friend who is a doctor – always gets a medical question. Our lawyer girlfriend is often asked whether certain (sometimes dubious) behavior is legal. Me? When I tell folks about Abundance Bound I can pretty much count on being asked for “just a few simple tips” on how to save money.
And truthfully – even though I’ve been asked in some strange places (waiting for a taxi at the airport, during the intermission at the opera, and even on line for the restroom…) this might be my favorite question! There are so many ways to save. Everyone’s situation is different, which can make it difficult to hone on in a few generic tips. Still, here are some ideas that help many people:
If you’re looking to save a few dollars:
- Focus on the grocery store. Between better coupon clipping, being conscious about where you shop, paying attention to sales, and eating out less, you can save a significant amount of cash. In 2010 I cut $2400 off of my family grocery total for the year just by changing the store where I purchase all of our produce!
- Shut off lights and sprinklers, and unplug utilities when you aren’t using them. Utility companies offer budget plans, which allow you to pay the same amount every month.
- Bike or walk if possible instead of driving. Do you know that over 44 percent of all car rides are less than two miles? As gas prices rise it bites more and more into the budget. Are there places you could get to easily without taking the car? If so, you’ll receive a triple benefit; first, you’ll save money on gasoline, but you’ll also feel great about helping the environment AND getting out exercising. (more…)
Posted in Debt, Saving Money | No Comments »
Posted by Miata | September 26th, 2011
 I pulled my car into a garage to have the oil changed this week. I realized during this process how closely some of these financial topics mirror auto repair jargon. Sometimes it takes all of my acting experience to pretend I know what a mechanic means when he’s explaining the difference between types of oil. I’m terrified he’ll recognize me as the not-sure-where-the-oil-goes person I am, and suddenly the cost of my car repair magically skyrockets.
As I’m smart enough to realize that there are auto-related facts I must know to keep my costs down, it’s similar with some financial concepts. One number may save you more money than any other in your financial life. It’s called a FICO score. This number tells lenders how reliable you are with payments to debt. People with high credit scores are offered lower interest rates to borrow. They’re also often given better repayment terms.
Knowing your score became more important than ever a couple months ago when Bank of America changed their fee structure. (more…)
Posted in Credit Cards | No Comments »
Posted by Miata | May 5th, 2011
 Owwww!!! You spend and I suffer??? CONGRESS appears to be nearing a fight about debt. I don’t want this to be a political discussion, but often current events can help us look at our own financial picture more objectively. Some members of Congress assert that they will not allow the United States debt ceiling to rise. Others, recognizing the huge gulf between the amount of money available and the amount that needs to be cut in order to balance the budget, seem willing to talk about cuts but want a more reasoned approach. However it ends, this fight is long overdue. Imagine if you managed your financial house this way, constantly adding new debt without a plan to repay it?
Long time readers of this newsletter know that I’m on a mission to free the creative community from the pain and stress of out of control debt. I’ve watched more people’s dreams crumble under the weight of debt than from stock market declines or rising health care costs. Debt can bring a person to her knees quickly. Just one more credit card can be the tipping point between financial solvency and ruin.
But what happens when you must take on debt? What if there is no other way?
(more…)
Posted in Credit Cards, Debt | No Comments »
Posted by Miata | January 13th, 2011
 PHILOSOPHER GEORGE SANTAYANA SAID, “Those who do not remember the past are condemned to repeat it.” That’s why, at the end of the year, I like to study the past twelve months and ask myself, what is it that I learned? Some years the answers to the question are easy, like in 2000, when the obvious moral was that the stock market doesn’t always skyrocket. In 2002, we were lucky to learn that the inverse, stock markets don’t always plummet, was true. Other years are more difficult, but if you dig, each twelve months you’ll find plenty of learning nuggets buried in the headlines that you can carry into the next year and beyond. 2010 is no exception. Although it wasn’t a year with brilliantly shining financial stories, there is plenty to remember.
Here are my top five 2010 lessons, in descending order:
5) Home ownership is difficult (still). According to RealtyTrac, one out of every 389 homes received a foreclosure notice in the month of October. Banks are still uneasy about loaning money to people for home purchases, and with good reason. If you own a home, having a good cash reserve, a low amount of debt, and a consistent income stream are all vital to maintain your mortgage.
(more…)
Posted in Debt, Identity Theft, Income/Expenses, Investments, Taxes | 1 Comment »
Posted by Miata | December 16th, 2010
 Silly debtor, wheels are for hamsters! (Or cars with a V6 or higher.) Ever watch a hamster spin the wheel inside of its cage?
My daughter Kiera has a hamster named Violet. At least once every day I’ll find my kids in their bedroom giggling as they watch poor Violet spin faster and faster, her little legs pushing harder and harder. Where does she end up? Right where she started. Funny entertainment for my children, but a lot of work with no payoff for the hamster.
Many people with credit card debt feel like the hamster. Every month they send a large chunk of their paycheck to a credit card company, but just like Violet, they spin and spin, working hard, collecting a paycheck, sending it to the credit card company, again and again, never seeming to get anywhere.
This week I’m going to help you stop spinning the wheel and start making some progress.
Let’s avoid three common mistakes I see every day:
(more…)
Posted in Debt | No Comments »
Posted by Miata | October 8th, 2010
 Coinsand (noun). A bed of loose change saturated with greed and having considerable depth, yielding under financial pressure and therefore tending to suck down any object resting on its surface. See also Interest Rate, Inflation, or Money Laundering. “I’m drowning!”
That’s the common cry when people tell me they have too much credit card debt. It isn’t simply “I have too much debt,” or a polite “I’d like fewer bills, please.” They’re sinking in debt and need to be rescued fast. It’s a full-fledged, panic-stricken wail.
Maybe it should be. According to CBS News, the average credit card interest rate jumped 13 percent to 14.7 percent in just the last twelve months. I met a woman last week with a thirty percent interest rate card. Thirty percent! She’d paid over one thousand dollars in interest since the beginning of the year. Imagine what you could do with an extra thousand dollars.
Drowning is a creepy, but appropriate analogy for debt. Maybe you’re drowning in overdue or soon-to-be overdue bills, but I’m not going to save you.
I’m going to teach you how to swim.
(more…)
Posted in Debt | No Comments »
Posted by Miata | September 24th, 2010
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