Rock Your Debt

Budgets are not fail-proof approaches to managing your money. At the end of the day it requires effort on your part to make it work. I know that my wife and I have struggled in the past to keep and stick to a workable budget. While traditional budgets are effective for some, most people still find themselves spending money on whatever they want rather than depositing their extra money in their savings account.

Read more on What is Zero Based Budgeting and How to Create a Realistic Budget…

If you are in the process of purchasing a home and haven’t been able to save the necessary down payment then it is important to research alternative sources of down payment funding to choose the most affordable method. While some prefer to secure a second mortgage and private mortgage insurance, others, like me, prefer cutting the expense of PMI. If you are asking yourself “can I use my 401k to buy a house” it is time to start researching your options. Always compare the cost of using your retirement account balance to other sources of funding and make the best decision based on tax implications and financing rates.

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Several years ago I had the opportunity to buy a rental property. It was a duplex that a friend of mine was living in. He was living in one side and renting out the other. He and his wife were about to move out of town and needed to sell his property. Long story short, we settled on a price that we both could live with and we began the process of transferring the ownership.

Read more on Buying a House with No Money Down and Why I Wouldn’t Do it Again…

Cleaning up a pile of debt can be a long and difficult process. Over the years, I have successfully eliminated my school loan debt, credit card debt and the inevitable car loans. However, it was not easy and required much sacrifice and many years to accomplish. My wife and I are determined to never have a car loan again. We drive highly reliable used vehicles and we are quite content with this fact. Sure, we would like to drive new vehicles but we now know what it is like to have the freedom of not having a car payment.

Read more on Reasons why Getting a Car Loan After Bankruptcy is a Bad Idea…

Without question one of the best ways to save for retirement is through a 401K retirement savings account. It is also important to stay up-to-date on new limitations and requirements from year to year. The 401K has remained one of the safest retirement investment vehicles even during the current damaging economic recession. Each year, proactive investors should plan how much they will contribute to their 401K and other retirement plans so they can achieve peace of mind in knowing they will live comfortable in the Golden Years. Unlike some retirement vehicles, 401Ks do have an annual maximum contribution limit. Be sure to understand what is the maximum 401k contribution per year and how this limit may affect you.

Read more on What Is The Maximum 401K Contribution Per Year and Why Has It Stayed the Same?…

There was a time when almost all businesses and large corporations offered medical benefits as part of an employee’s benefits package. Now, due to the rising cost of health care a large percentage of employees are forced to invest in individual medical insurance because their employers do not offer such benefits. Whether you are an employee or are self-employed and you carry your own individual health insurance policy you may want to educate yourself on health savings accounts pros and cons. HSA accounts can become a powerful financial vehicle for individuals enrolled in a High Deductible Health Plan. Understand the advantages and disadvantages argued by proponents and opponents of HSAs and decide if an HSA is the best way to pay for qualified medical expenses.

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If you want to live a comfortable retirement in your Golden Years it is important to start saving as soon as possible. When you are young, the last thing that crosses your mind is putting away for the time in your life when you have the freedom you have always dreamed of. Studies show that the average age individuals start planning for retirement is 35. While this is the average age, individuals who do decide to put away even a small sum of money each paycheck earlier on in life save as much as 30 percent more than those who wait. 401k savings plans have become the most convenient way to start building a nest egg. Understand what is a 401k plan and how does it work and start saving early on for a great life later on.

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Home loan lenders consider more than just an applicant’s income and credit score to determine how much he or she can borrow. One very important factor that lenders used to measure credit worthiness is called a debt-to-income ratio, or DTI. In lending terms, a DTI is technically a factor used to measure how much of your income goes towards paying off loans. When lenders calculate your DTI, they will come up with two different calculations. The first calculation is your front ratio and the second is your back. Understand the difference between your front and back ratio. Also, understand how to calculate debt to income ratio to find out where you stand before you apply for a loan.

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If you are like most people, understanding the difference between Roth IRA and traditional IRA accounts can be so confusing. Individual Retirement Accounts (IRA) have become a great investment vehicle for individuals who want to build a safe and accessible nest egg during retirement. While both Roth and traditional IRAs serve the same purpose, each type of account has different eligibility requirements and benefits to specific categories of taxpayers. Understand the differences between each type of retirement account and choose the best financial decision for your situation.

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Car loans for bad credit borrowers have become extremely prevalent in today’s economy. Many potential borrowers are faced with the fact that traditional financing is simply not available without exceptional credit. Unfortunately, the vast majority of consumers do not have the type of credit that will allow them to obtain a traditional bank loan, which includes the lowest possible interest rate. In the meantime, consumers have to look at alternative methods to finance an automobile, which has become a necessity since it is nearly impossible to obtain and keep gainful employment without reliable transportation. The exception is of course cities with a proven public transportation system.

Read more on Reasons to Avoid Car Loans For Bad Credit Borrowers…