Five steps for lowering your monthly student loan payments:

1. Make a spreadsheet document that includes all of the lenders that you owe, the amount that you owe them and the minimum monthly payments. Calculate the total amount of money that you owe on your student loans.

2. Research the lowest interest rates offered for student loans by looking online and/or visiting local banks. You will find that it is often easiest to use your current bank to refinance your loan but in the long run it isn’t always cheaper.

3. Check out the availability of federal loan consolidation programs that may be provided through your school or the government.

4. Decide which bank you are going to use to consolidate and refinance your loans. This means that you will take out a loan big enough to pay off all of the individual loans and lower your payments while slightly increasing the time it takes to pay off the total loan.

5. Sign a promissory note to begin making payments to your new lender on a lower monthly payment schedule.

Warning: Debt consolidation can be used to lower your payments but it will not necessarily lower the total payment of your loan. There are many students who do not understand debt consolidation loans and occur even more debt because they have lower payments and end up spending more when they should be applying their excess income to paying off their consolidated debt.

Or what’s the right amount of money for down payment, and consequently what’s the smartest decision on the length of the car loan, and the monthly payments.

Experts recommend that the first issue to consider is how much of your financial resources at this point of your life you are willing to devote to upgrading your ride opposed to providing yourself a bigger margin of financial security. The second issue is how you should pay for a new car whatever the car you might want.

In deciding how much you would devote to buy a car, it is recommended that you check what percentage of your yearly salary your car payments would represent. If such percentage gets close or higher to 10% you are probably paying too much, despite the down payment you gave away.

So at the very least you should ask yourself how taking on this new commitment on will affect your ability to save for retirement. Will you be able to pay off the car loan while maintaining your current savings rate? Or will you have to cut back?

In other words, in order to make a wiser decision, you should keep in mind that the fact remains that you’re diverting resources that could go toward enhancing your financial security into a car. So making the right decision now, will require from you to think about the future and your personal financial goals.

For example, the 100 dollar bill is issued by the US government, but how many people in the united states actually pay for things with $100 cash? Answer: not that many. So the bill is currency, but it is hinging on the edge of not being a form of money.

Here are some interesting forms of money from all around the world:

Forms of money

1. miniaturized tools
2. miniaturized swords
3. cowry shells
4. slabs of salt
5. beaded belts (wampum)
6. giant stone wheels
7. tobacco
8. electronic transactions

As illustrated in the list above, things such as tobacco and cowry shells (which are not issued specifically as a form of government currency) are used as money in some places. They are simply used to purchase goods and services.

Are taxes emptying your pockets?

Tax day is coming up quick, and the rush to get ready is beginning.  Everyone knows taxes can be very confusing to the average person – that’s why accountants get paid so much.  But there are some common misconceptions about taxes that could make a difference to you and your finances.  One of the biggest ones is tax brackets.

If you asked a random person out on the street what tax brackets are, they would probably say that the higher your income, the higher the percentage you have to pay in taxes.  That is partially true.  But because of this not-quite-accurate definition, many people misunderstand and say something like “I don’t want to have a higher income, because then I would be in a higher tax bracket.”  In fact, that is an awful strategy.

The way the brackets work is a little more complicated, but overall it costs less money than the previous definition would lead you to believe.  We have what is called marginal tax brackets.  This means that there are certain levels of income – kind of like platforms, or steps on a ladder.  The first “step” is at $16,700 right now.  All the money that you make below that amount is taxed at 10%.  The next “step” is $67,900.  All the money between $16,700 and $67,900 is taxed at 15%.  The money you earn that is higher than $67,900 but lower than the next step is taxed at the next highest percentage.  And the steps keep climbing.

This makes a big difference compared to the normal misconception.  For example, say that you make $16,701 in one year.  Under the first definition, you would have to pay 15% on all of it, which would come out to $2,505.15 total.  But under the marginal tax bracket, you would pay 10% on the first $16,700 (which equals $1,670) and 15% on the extra $1 (which equals 15 cents).  So instead of paying $2505.15 in taxes, you are only paying $1,670.15.  The marginal tax bracket system has saved you $835.

This system completely eliminates the need to stay under a certain tax bracket level of income.  Unfortunately, many people don’t understand, and their finances suffer because of it.  But now you know, and that fear of a “higher tax bracket” will never haunt you again.

1. Give an allowance: Give you child a chance to earn the money they need to do fun things with their friends by providing them money in return of them completing certain chores or tasks.

2. Encourage a part-time job when they are old enough:This doesn’t necessarily mean a job that requires an employer. This could include something such as mowing lawns or babysitting.

3. Help your child understand the importance of saving money: If they can constantly save some money they will begin to lay a foundation that will help them the rest of their lives.

That’s quite the turn-around. And thank goodness. If money is power, saving money is empowering.

Savings Starts Somewhere

Since keeping financial secrets from your spouse can be a recipe for disaster or the other D-word, it’s best to start on these basics together. Who knows? You could fall farther in love over your finances. He might even find your healthy savings account tantalizing, and she may think your financial confidence is devilishly attractive.

So, what can you do to be part of the savers? This is the first part of a 5-part installment on becoming a Savings Superstar. For a little sneak peak at the general advice, keep reading:

-Know your plastic personality.
-Don’t trust yourself to pay yourself first.
-Deposit your paycheck and other money to your savings account.
-Limit yourself to one ATM withdrawal per week.
-When you make a credit-card purchase, record it immediately.
-When you subtract a check from your account, round up the amount.
-Toss your spare change into a fun savings bank.
-Bag the savings from brown-bag lunches.
-Pay yourself after you’ve paid off a debt.
-Give yourself a cooling-off period.

Do you feel empowered yet?

The parents of a Northwestern student who just headed back from holiday received this letter: Dear Mom and Dad: Univer$ity life i$ $o wonderful! Cla$$e$ and $e$$ion are intere$ting, my cla$$mate$ are the be$t! But after $pending all my ca$h on Chri$tma$ pre$ent$, I am in a little need for $ome $pending money for book$ and $uch. But I don’t want to $end the wrong $ignal$ home.
Love
Your $on

Teach your kids how to work hard and responsibly manage their own money. It may be “unfair” while they watch their friends have everything handed to them, but in the end, any other treatment would be a disservice. It’s a lot easier to learn the value of hard work and the benefits of financial responsibility when they’re six instead of 26.

Plus, the relationship you share with your kids when they are young adults will be drastically different depending on their level of dependence on you.

And a skimpy pay check definitely hurts.

This weather would probably look less dreary if you know that you have a little extra saved up. Generally knowing that you’ll still be able to make all the bills lets a forced (and unpaid) vacation look a little more relaxing.

Certainly if you’re sick and away from work for a few days, an emergency savings fund could be a better spoonful of sugar than any over the counter medication.

Imagine a sore throat, stuffy nose, congestion headache, and lower back pains when you’re worried you won’t make the bills on time. Now picture your same sick self with the knowledge that you’ve prepared for a situation like this.

Good personal finance before a crisis makes an unexpected situation less stressful and more manageable when it hits.

Don’t put off getting started. Even if you pack a peanut butter and jelly sandwich once a week and save the $10 you would have spent on lunch that day, you will be saving $40 a month or $480 a year. (That should cover a trip to the dentist.)

Unexpected expenses can be taken care of with an emergency savings fund.

• Trim nonessentials from your budget. Stop paying for premium cable, daily mocha lattes and brand name food and clothing and you could save as much as $1,600 in one year.

• Consider getting a part-time job. Even if it is three to four hours a week at night or on the weekend, the extra income could go a long way to creating that cushion you need.

• Give the $5 bill saving plan a try. For those folks who use cash regularly, this plan involves keeping any $5 bills that you receive throughout the day and week and placing them into savings rather than spending them. A conservative estimate of savings using this plan would be $20 a week or more than $1,000 a year.

• Save half of all ‘extra’ money. When you receive a raise in pay, place half of your new earnings into savings.Have the money deducted automatically from your payroll and placed into your savings account, and you will never miss it. Likewise, save half of any tax refunds or an inheritance.

• Continue to make your car or other loan payment after you have paid off the balance due.Put the money into savings each month just as if you are continuing to pay the note. It takes discipline to accomplish this, but I assure you, if you don’t put the money in savings, it will get spent. To convince yourself to stick to your savings plan, think how nice it will be when the car needs service and you have the funds to pay for it with no additional interest charges tacked on to the total.
  

  After the work is done, reward yourself!

• Include saving for something fun once you reach your goal. After you reach your emergency savings goal of three to six months of living expenses, you will have developed the habit of saving. Continue to save, only this time for something fun. The dream vacation to Disneyland you never could afford, a European vacation … you get the idea.

This is a trick that can help you break the habit of relying on  credit cards or raiding your savings account whenever a big annual or semi-annual expense comes up. Set up several high-yield savings accounts with one online bank and arrange for automatic deposits into those accounts on a regular basis.

If you automatically save a little money on a regular basis, it doesn’t take much to build up a good stash for when your big expenses come due. For example, if you arrange for a mere $25 a month to transfer from your checking account into your holiday gift fund each month, that’s much easier to manage than coming up with $300 all at once come December.

TRICK #8: Set long-term goals with a buddy.

One of our biggest enemies when it comes to making financial decisions is our short-term memory. We get impatient when our investment balances don’t grow as quickly as we’d like, or our friends seem to be having more financial success than we are. Or we just get tired of scrimping and saving and get the overwhelming urge for a splurge.

Getting a buddy for setting goals makes you responsible financially to more than yourself.

Keep your long-term goals in focus. Define your goals early on — such as saving for a down payment, starting a retirement fund or taking an annual vacation. Then set up plans to reach them and be sure to discuss your progress regularly. Having that accountability with someone (a spouse, best friend, family member, etc.) helps motivate you to stay on track.

TRICK #9: Ignore your annual raise or year-end bonus.

Expecting a raise this year? Pretend you’re not. By keeping your standard of living the same and not increasing your spending with each bump in pay, you can pocket the extra money and use it to reach your goals. The same goes for that year-end bonus or tax refund.

It only takes a few extra bucks to start your emergency savings, begin investing or pay extra toward your credit card debt. You could even use the money for something fun. Start stashing it in a vacation savings fund so you can afford to have a real travel adventure next year instead of the old crash-on-Mom’s-couch getaway.

TRICK #10: Give yourself a raise.

Not getting a raise this year? Take matters into your own hands. You could get hundreds of dollars added to your take-home pay each year simply by telling Uncle Sam not to take so many taxes out. Most of us give the government too much upfront — that’s why we get tax refunds in the spring.

Take back your money and use it throughout the year instead to help you make ends meet, boost your emergency savings or start investing for your future. All you need to do is file a new W-4 form with your employer to adjust your “withholding.”