Money Archives - Page 30 of 32

The Ultimate List of Budgeting Tips to Reduce Debt

The increase in consumer debt over the past few years, mainly since the recession is staggering. More and more people are finding themselves in a situation where they are battling to cope with their rising debt, with some feeling as though it’s a mountain they just cannot get to the top of, no matter how hard they try which as a result has led to more people within the UK having to use an IVA (Individual Voluntary Arrangement) or Trust Deed to help manage their debts.

Saving monthly, paying the minimum repayment on credit cards and cutting back on things such as travel or eating out – following the guidelines which are published in many magazines and blogs. Feeling like you’re doing the right thing but it just doesn’t seem to be making a difference.

This is why many people are turning to IVAs and Trust Deeds. These can help those individuals and families who are struggling with mounting debt to cope. In the case of an IVA or individual voluntary agreement, creditors will come to an agreement in which the consumer pays all or some of their debts over a period of time.

It’s favourable to bankruptcy as it allows more control over assets. A Trust Deed is also an arrangement where all of a debtor’s assets are transferred to a trustee to manage and pay back the creditors. This will also include paying a regular portion of their income to the trustee to allocate to creditors.

Before choosing to enter into either of these agreements however, try to reduce debt yourself. It IS possible.

Below is the ULTIMATE list of budgeting tips to reduce debt, and following as many of these as possible, will help you to get a lot closer to the top of the proverbial mountain than you have ever been…

Spend less than you earn

This may seem obvious, but many people rely on credit cards to live a lifestyle that costs more than what they earn. Create a realistic budget and stick to it.

Cut up your credit cards

Do this so that you are not tempted to go over your monthly budget.

Pay off credit cards with the highest interest first

Check APR on each card and pay them off from the highest to the lowest.

Implement a weekly meal plan

By planning your meals for both lunches (at work, school or home) and dinners, you will know exactly what to buy. Anything that doesn’t got into one of the recipes, doesn’t need to go into the trolley.

Take your lunch to work

Taking your lunch with you to work can save a substantial amount over time. The same applies to morning coffees.

Look to change your home and car insurances

Insurance companies usually rely on the fact that people will not cancel the automatic renewal each year, but often their prices don’t remain competitive. Use a price comparison website and don’t be afraid to change insurer.

Don’t buy new clothes

There will be times where kids grow out of their clothes and buying new clothing is unavoidable, but the adults most certainly don’t need anything new until after the debt has been paid off.

Downgrade your mobile phone and TV package

It’s an essential part of reducing debt, whether we like it or not. We don’t need the mobile phone package with unlimited minutes or huge amount of data, nor do we need the best TV package with access to the latest box sets. While you are paying off debt, downgrade to the basics.

Track your expenses

Writing down everything you spend or using an app to track can help you to spend less because you are constantly aware of the running total. Put a stop to any monthly subscriptions such as Netflix and Audible. All the small amounts do add up over time.

Put any extra cash towards your debt

Any additional money from overtime or part-time work as well as unexpected cash in the form of a gift or someone paying for you when you had planned to pay yourself, should immediately go to pay off your debts.

Cut back on entertainment

This will only be a temporary measure but will go a long way to decreasing your debts.

Pay a little more than the minimum repayment

Even if it is only £5 extra, always pay something more than the minimum which will bring down the interest you will pay over the course of the debt.

Try implementing just one of each of the above tips per week and within three months you will have built up numerous healthy habits towards reducing your debt.

CFD Trading; A Simple Guide

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CFD trading has recently become a way to make a bit of extra money from the comfort of your own home, with some reduced risk when compared to standard trading on the stock market. CFD stands for “Contract for Difference” and it is based on the agreement between the two parties involved to settle at the end of a disclosed period, with the difference being the price at the start and the end of the contract, which is the traders profit.

The difference in the price at the start at the end is multiplied by the amount of shares that was agreed upon during the start of the trade and this is then the profit made by the trader. The process is very similar to ordinary share trading, in that they are purchased the same way and in the same amounts, even with the same prices, however, there are a few very clear and very distinct differences with ordinary share trading that are to be explored in the remainder of the article, with some tips and tricks in how to get the most out of a CFD trade and the protocol to think about when entering into one.

The first and foremost thing to consider, is that a CFD trade is operated in terms of margins. This means that the trader can maximise their capital and can often mean less capital is needed to get a good return than could be the case for ordinary share trading. Another point to make is that there is no stamp duty that needs to be paid for a CFD trade and this means a saving of 0.5% over a traditional share trade purchase. The flexibility in terms of short or long term trading can mean a profit can be made from both rising or falling stock and a greater range of financial markets is available to the trader when opening just one account of their own.

The magnified profits made also work the other way round for a CFD trade, so the losses made will also be magnified and you could find yourself losing large amounts of money quickly, as a result. It is therefore important to track each trade and put in place a stop loss in order to cut your losses. The main aspect is you do not have any rights as an investor and in fact, the commission charged on a trade means that they are more suited for short term investments because the longer the trade goes on, the more the costs increase.

There are many things to consider before entering into a trade and these include analysing risk, the trading system and the psychology of the trader. A useful graphic is provided to show the most important factors in becoming successful in CFD trading:

It can be seen that it is the trading psychology that is most important and it is good to get yourself into the right frame of mind before making a trade. It is always important to apply logic to every situation, operate like a robot, rather than a human and have a rigid structure that you will stick to when trading.

In addition, it is important to closely track your losses and profits. Cashing out too early on a profiting trade can be a big mistake, but perhaps the largest mistake is clinging on to a falling trade, in the hope it will start to rise again, it is always best to cut your losses whilst you still can, without draining your account so you can live to trade another day. A definite thing to do is to never dd to losing trades, this may sound simple, but, it is worth mentioning as some people have done this in the past, using a trend line to monitor the trade is a much better way to avoid making this mistake.

There are currently many platforms that are available in which CFD trading can be used to make some money online from the comfort of your own home. These sites include CMC markets, amongst some others that give the trader an easy way to start trading straight away, with welcome offers even being available from time to time.

How Electric Fires & Stoves Are Making Greener, More Sustainable Heating for Homes.

By Frugaling Leave a Comment

Stoves and electric fires are fundamentally very different in their overall design. However, in recent years, both have made huge advancements in design to make them both sustainable heating sources for a home.

In this article we look at both electric fires and stoves, for the simple reason that in some homes a wood burning stove is not an option, and electricity is the only power option – this can be especially true in new build housing developments.

Electric fires – One attractive feature of electric fires, is that they are very simple to use. Simply plug in, switch on and warm up. Many electric fires nowadays require a very low level of energy, meaning they are very cheap to use. Allowing you to heat your home for less, and being more environmentally friendly at the same time.

Unlike gas fires, electric fires do not need an annual inspection either. Electric fires can be fitted in such a variety of places in the home. Many such fires have a side heating design, allowing you to place a fire below a wall mounted TV or very close to the floor.

Another benefit of electric fires, is that there is no water involved, like with a traditional central heating/radiator set up. As a result there is no wasted heat through pipeworks, or the associated inconvenience and cost of pipe blockages. An electric fire is classed as 100% efficient. This is because 2kW of electricity is used to product 2kW of heat in a home.

Wood burning stoves are good – but they cant achieve this level of efficiency, although they are taking large strides in becoming more fuel efficient.

Wood burning stoves – In recent years, wood burning stoves have made advancements in efficiency, to make them cheaper to run, and more environmentally friendly. In comparison to a traditional open fire, a high efficiency, wood burning stove is around four times more efficient. An open fire is about 20% efficient, while a high efficiency stove is around 80% efficient. With an open fire, 80% of the heat produced is wasted – usually disappearing up the chimney. With a wood burning stove, this figure is only 20% – the other 80% goes directly on heating a home.

The result of advancements in wood burning stoves means less wood needs to be burnt for the same heat output, saving money and helping contribute to a cleaner, more sustainable way of heating a home.

Below are some tips to ensure maximum efficiency when burning wood:

Ensure you only burn well-seasoned wood. Wood with excessive moisture will contribute towards chimney congestion, increase the risks of carbon monoxide poisoning, and chimney fires. Burning unseasoned wood will also product a poor, inefficient heat output.
Ensure your chimney and stove is cleaned on a regular basis by a qualified chimney sweep.
Burn the best wood you can afford. Below is a list of some of the best woods.

Ash – Ash is regarded as one of the very best woods for burning. Ash produces a steady flame and a good heat output. Unlike other wood, ash can be burnt when green, but like with most wood burns at it’s very best when it is dry.

Beech – Like ash, beech burns very well. However, it does not burn well when green due to it’s much higher moisture content when live.

Hawthorn – This type of wood has a slow burn rate, and a good heat output.

Rowan – Similar to hawthorn, rowan has a very good heat output that burns slowly. Rowan is also know as Mountain Ash.

Thorn – Thorn produces very little smoke, which makes it an ideal wood where excessive smoke could be an issue.

Yew – Slow burn and produces a great, intense heat. Burning yew also produces a pleasant scent, which makes it stand out a little more over other woods.

5 Apps to Feed Your Frugal Lifestyle and Help You Save More

By Frugaling 1 Comment

If your family is struggling to save money, it’s time to recruit your smartphone to help achieve your financial goals and get more disposable income each month. There are plenty of apps around that can make a frugal lifestyle much more convenient. Today’s apps allow shoppers to get the best price around and to make smarter decisions when spending. This way, you and your family can start having fun with innovative smartphone tools while also spending less. Try out these five recommended apps if you want to reign in your family’s budget this year.
1. RetailMeNot
While most people know about the popular coupon website retailmenot.com, which can help you find deals for your favorite shopping sites and brands, fewer consumers are aware of the company’s useful smartphone app of the same name. The app version of the website has improved functionality that sends you coupon notifications based on your geographic location. You can see the best deals and offers when you’re out shopping or doing errands, meaning you’ll never miss a great price again.
2. Flipp
Going to the grocery store each week used to mean spending hours of your time beforehand to look through dozens of newspapers and circulars for the best sales and coupons. Then, it was your job to clip each possible savings opportunity and remember to bring your coupon box with you on your trip to the market. With the app Flipp, this process is made much easier by giving you virtual access to all of your area’s circulars in one spot. Now, you can simply use your smartphone to save and shop smarter.
3. RedLaser
Shopping for big ticket items or other household supplies may have you comparing prices between online retailers and your local store. You can save time by downloading an app called RedLaser. All you need to do is scan the item’s barcode while you’re in the store, and the app will pull up pricing information from online retailers and local suppliers. This way, you can get the lowest price fast.
4. GasBuddy
Everyone knows people who go out of their way to save a few cents on their car’s gas fill up. Instead of driving around and searching for the best price, let convenient app GasBuddy do the work for you. It will show you where the best price per gallon is in your area, and you can plan your route more efficiently. While you’re at it, you can even get some better car insurance rates too by contacting your local insurance agency for a better deal.
5. Mint
To see how all of these savings are impacting your family’s bank account, you’ll need a financial tracking app like Mint. This useful tool can remind you when bills are due and even help you make online payments. You can also get beneficial financial advice about your current spending habits and debt. After a few months of following sound strategies, you can also see how your credit score is impacted.
Make this year a great one for your family by truly committing to the frugal lifestyle. See how these popular apps have helped many families like yours save hundreds of dollars or more each year.