(Entrepreneur organizations) Surviving Financial Crisis in the 21st Century
No commentsBy Yossarian Smythe
Surviving a financial dilemma is one thing a lot of people have been challenged with during the past few years, particularly in America where it was hardest hit by the recession.
As the real estate market crashed, so did the other financial aspects of the country. One by one, companies started to lay-off employees, banks started closing, and mortgages started to rise sky-high. Without you realizing it, you and your family have already accumulated so much debt with usurious interest rates. How then do you avoid such financial crisis to overtake your life?
The Three P’s: Plan, Pursue and Prioritize.
Debt and mortgages is something that does not happen overnight. Most of us get lured into schemes, promos and discounts unaware that we already went overboard in spending what we can really afford at the moment. To avoid becoming a spend thrift, just follow the three P’s: Plan, Pursue and Prioritize.
Plan out your expenses :What do you really need now and in the future? If you are single, plan ahead for the future. Open up a savings account where you can deposit your hard-earned money. Sit down, grab a pen and paper and list down bills you have to pay as against the income you earn in a month. Make sure that your expenses are not greater than your overhead. Have a family? Then discuss it with your spouse. List everything down like mortgage plans, rentals, health plans, insurance, bills, monthly budget, etc. then compared it to your sources of income. Do you have enough for emergencies? Have you allotted an amount for medicines and other miscellaneous expenses? Plan each and every expense and you will be assured that you are off to a good start.
Pursue what you have planned in regards to your expenses. Follow through and discipline yourself against spur of the moment purchases. This is not the time to be a shopaholic! It is still best to save for the rainy days than to seek instant gratification only to regret it later on.
Learn how to prioritize. Do you really need a new car right now, or does the one you own still serve its purpose? Does your salary allow for a long term mortgage or a shorter one? Which one should you buy first, a laptop or a brand new television set? Prioritize which expenses are of immediate need like basic commodities and which one is merely a luxury purchase. Remember, it is also important you learn how to forecast expenses rather than to wait for it to surprise you.
Live Well Within Your Means
Resist temptations to overspend on things that are not really that important. It is best to make most of what you have right now. Life is not about competing with what others have; its about being responsible in spending, investing, and planning your finances. If you are earning, lets say $2,000 per month, then make sure that your expenses stays below that to avoid being buried deep in debt.
Learn How To Save
Sometimes in life it pays to be practical. Save on your electrical consumption, gas and other basic commodities. Try walking instead of driving to your neighbors house around the block. Unplug appliances that are not on use. Have cold weather? Then there is no need to use the aircondition. Look for discounted items, sales, and other purchases where you can save.
Bearing all of these in mind, and just by following through you can avoid debts and other financial crisis. In the end, it is you who dictates whether or not you will live a debt-free life. GP
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An Overview of Structured Settlements
By Barton Simmons
For most people when they buy a house it is considered their life’s largest deal. In some cases of structured settlements the compensation and financial considerations for a persons life duration and the total present value of the settlement can reach few millions of dollars. Therefore it is strongly advised to use professional services like annuity consultant and a lawyer specialized in this field in order for you to avoid painful costly mistakes. Here are some tips:
- Think twice before you make a decision. Do you really need that money or you want to feel rich, secure, powerful etc’
- Take only part of the money not all of it, in case of an injury claim the Court needs to approve your request, the judge will want to know what do you need the money for.
- Some Funds will try to convince you that due to Inflation and rising cost of living your annuity payments have less and less buying power over time. Remember that if the Structured settlement was done properly it has a cost-of-living adjustment (COLA) feature build into it in order to offset the effects of inflation over time. So the funds claim on this issue is only partially true as the cost of living index is an artificial and biased measure of the actual inflation over time. Still even 70% protection is reasonable.
- When you get a large sum of money take into account that each bank is F.D.I.C. insured for up to $ 100,000 only! That means that if your sum of money is bigger than that you will need to open additional Account/s in a different bank/s in order to be covered.
In addition take into account that as long as you deposit your money in C.D’s (e.g. Certificate of Deposit) you are covered, but if you invest your money In fixed income, stocks, bonds, and mutual funds. These securities are NOT F.D.I.C. insured!
- In case you transform Lottery winnings payments or a large sum of money from structured settlement, keep it as discrete as you can, It is not recommended to go and buy a Rolls-Roys or any other flashy car, that will bring the criminals and the charity people to chase you. That might even cause your children start to ask for money. Try to keep it a secret.
- It is a good Idea to get more than one or two offers from various private funds before making a decision, remember you are a very lucrative customer, the funds should fight over you! Don’t be timid to negotiate and manipulate them to maximize your money.
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Can You Buy a Home After a Foreclosure?
By Barton Simmons
Even though buying a home after a recent foreclosure is possible, homebuyer should not apply for a mortgage blindly. Because of your current credit standing, many lenders are ready to take advantage of you. Your options are limited. Nonetheless, this does not mean you have to accept a terrible mortgage loan.
Why Does a Foreclosure Occur?
Homes are foreclosed when a homeowner is unable to repay the mortgage. On average, mortgage payments have to be three months late before a lender begins the pre-foreclosure process. If the homeowner is able to acquire funds, the lender will stop foreclosure.
Many factors contribute to a homeowner’s inability to repay a mortgage loan. For starters, living beyond one’s means will make it harder to maintain regular monthly payments. Sadly, many people fall in love with a home they cannot afford.
Furthermore, some homeowners do not take into consideration utilities and other expenses that come with owning a larger home. Acquiring excessive credit card debt may also result in less disposable income.
The Disadvantages of Buying a Home after Foreclosure
For the most part, many lenders will not approve a mortgage loan immediately following a bankruptcy. In their estimation, you are a risky applicant. If you were unable to make regular payments three months prior, the odds of a future loan defaulting are high.
Naturally, circumstances do change for the better. For example, if loss of employment or illness contributed to a foreclosure, you may be in a better position to afford a mortgage six months after a foreclosure. Still, there are disadvantages to obtaining a home so soon.
Mortgage interest rates following a foreclosure are outrageously high. Because most traditional mortgage companies will not approve your loan, you may be subjected to interest rates 3 or 4 percentage points above current rates. This will increase mortgage payments by a few hundred dollars.
Best Approach for Purchasing a Home after Foreclosure
If you are hoping to buy a home following a foreclosure, be patient. The key is to rebuild your credit. During the next 24 months, attempt to open new credit accounts, and maintain regular payments. Pay creditors on time and avoid missed payments.
Next, shop smartly for a new mortgage. Prior to accepting a mortgage offer, contact several lenders for quotes. If using the internet, you may obtain instant quotes from several lenders in minutes.
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