Start your retirement planning now - Here's how

Working your entire life is certainly an unattractive prospect. This is why it so important to plan for your retirement as early as possible.

Start planning now

You should try to live below your means now so that you will be able to enjoy your retirement later. The first step is to take stock of your living expenses and think of ways you can cut costs. Take some time to sit down and think about what your dream retirement would be like. Would you like to travel? Do you have hobbies and interests that you would like to devote more time to when you are no longer working?

How much is enough?

Also keep in mind that your retirement may cost less than you might think. According to MSN Money columnist Liz Pulliam Weston, a recent study by the U.S. Department of Labor's Consumer Expenditure Surveys finds that many people actually spend less money when they are in their retirement. With the exception of healthcare expenses, most retirement-aged peoples' various living expenses dropped dramatically.

Living longer than you expect

Finally, take into account what retirement planners call the "longevity risk." Your longevity risk is the risk that you may end up living longer than you thought you would when you were planning your retirement. As a result, you run the risk of eventually running out of money when you retire. As medical technology continues to advance, this situation becomes even more of a possibility. You will want to save enough money to account for a very long life.

401(k) and more

The best financial vehicles to use to save for retirement are employer-sponsored retirement plans like 401(k) plans. Individual Retirement Accounts, or IRAs are other savings accounts that allow you to put away money from your "gross" or pre-tax wages. The money grows tax-free too. Pension and IRA savings are also immune to seizures during bankruptcy proceedings in most states.

Getting help

However you plan on saving for your retirement, be sure to go over your plans with a financial expert. He or she will give you the best advice for reaching your retirement goals so that you can comfortably enjoy your golden years.

If you are in debt and would like to find out more about the legal options available to you, give us a call at 888.743.5787 or fill out our free legal evaluation form.

http://www.legalhelpers.com/legal_helpers/brc_articles_retirement.html

Putting Your Money into Perspective

Advertisements bombard us wherever we go. Television commercials, billboards, and magazine ads all tell us that the right brand of shampoo or piece of clothing will make you happy. Granted, it is nice to own new things. But there is no reason why you should sacrifice important long-term financial goals for temporary satisfaction. Spend your money wisely and save up for what is most important to you.

Budgeting

Try to think of the long-term financial goals that are important to you, like your retirement or your children's college savings. Then plan accordingly. Your first step in planning for the future is budgeting.

Your budget is a list of your monthly expenses, including food, rent/mortgage, gas, entertainment, and so on. As the month progresses, stick to your budget. Keep an eye out for any expenses you can really live without. Try to think of ways you can cut costs, like eating more of your meals at home or bringing your lunch to work with you, instead of eating out.

Stop Trying to Keep Up with the Joneses

You may feel as though you are somehow cheating yourself when you begin living on a budget. It is easy to be jealous of friends and family members that buy whatever they want for themselves. However, keep in mind that everything comes with a price. For all you know, these same friends and family members could be wracking up major debt with their careless spending.

And instead of focusing on what you do not have, think instead about all the things you do have. Be grateful for your family. Consider all the things you have in your life that make you happy. When you value what you have, you will not feel the need to waste money on things that are not important. You will place your money where it counts instead.

If you are in debt and would like to find out more about the legal options available to you, give us a call at 888.743.5787 or fill out our free legal evaluation form.

http://www.legalhelpers.com/legal_helpers/brc_articles_money_perspective.html

Finding a job after College

After four long years of late-night studying and writing term papers, your graduation is approaching. You may feel excited to put your college days behind you, but have you thought about what you will do once that diploma is in your hands? Your first attempt to survive in the "real world" could be very stressful and scary. You need to plan accordingly.

Be aware that your job search could likely take a very long time. This is why it is extremely important to start looking for a job before you have graduated. The earlier you start your job search, the sooner you will find a job. You will only add stress to your life if you postpone your job search until after you have your degree.

You might not find a job for a number of months after you graduate. Your parents may only give you limited financial help or offer you no help at all. Also do not forget that you will have to start paying your student loans soon. Keep an eye on your spending in your final months of college. You will need to save as much as possible before you are out on your own.

Consider finding a part-time job if you do not have one already. It may not be the job you had in mind when you began college, but you will need something to pay your bills until you finally find your dream job.

In the meantime, use every resource at your disposal in your job search. Try to network with your friends, relatives and coworkers for employment openings. Your college professors may be able to help you find something. You should also keep an eye out for on-campus recruitment fairs and try online job search engines like monster.com and careerbuilder.com.

Try not to get overwhelmed if your job search is not immediately successful. Stress is a useless emotion. It will only frustrate and discourage you. Instead, focus on your efforts to find a job that would be a good fit for you. If you begin to feel discouraged, talk to a friend or loved one. It is very hard to make the transition from college to professional life. Keep working hard and stay optimistic. Eventually you will find a good job.

If you are in debt and would like to find out more about the legal options available to you, give us a call at 888.743.5787 or fill out our free legal evaluation form.

http://www.legalhelpers.com/legal_helpers/brc_articles_college_grad.html

Rising Fuel Costs and the Effect on Americans

Many Americans are starting to feel the pinch of rising gas prices. It is having a direct effect on living standards and expenses. Gas prices nationwide are reaching prices that have not been seen in 25 years. As a result, it is forcing consumers to spend more money on gas, which leaves less money for other living expenses. The average gas price nationwide as of March 5, 2006, was $2.92/gallon; this is up $1.19/gallon from March 23, 2004.

This increase means that in a little over two years, most Americans are spending 50% more on gasoline then they had been in the past. This leaves the average consumer with a lot less disposable income to spend on their bills and living expenses. As a result, many people are unable to pay as much as they used to on other debts like credit cards.

In addition to eating into the monthly budget, the rising fuel costs are causing increased debt. People are spending more on gas and can not afford other living expenses like food, clothes, dining out, entertaining, etc... Instead of paying cash for these things, people have to use credit cards and then must try to figure out a way to pay for the credit card later.

The outlook doesn't look especially positive either despite a recent leveling off of prices. The gas shortage only looks to continue as facilities remain closed in the Gulf of Mexico and conflicts in Africa lead to a shortage of available fuel.

Conclusion

If you are feeling the pinch from increased fuel costs and you would like to talk to an attorney about your options, give us a call at 888.743.5787 or fill out our free legal evaluation form.

http://www.legalhelpers.com/legal_helpers/brc_articles_fuel_costs.html

How to Talk About Money with Your Partner

Money is always a sore issue with couples. This is probably because our treatment of money is deeply psychological. Our values, emotions, and goals all tie into our spending and saving habits (or our lack of either). It is very hard to see eye-to-eye on all these issues. However, you and your partner can follow three steps that will help you resolve your financial issues.

Step 1: Communicate

The first step may seem obvious, but it is also the hardest. It will be difficult to talk about money issues with your partner. Be prepared for disagreements. They will be inevitable.

It may help to do a little self-examination beforehand. What are your own money hang-ups? What does money mean to you? What motivates your saving or spending habits? Do you overspend because shopping makes you feel happy? Do you throw your every nickel into your savings account because it gives you a sense of safety? MSN Money columnist MP Dunleavey states that our parents' money habits usually strongly influence our own views on money. Think of how you were taught to view money when you were growing up.

As you discuss money with your partner, be patient and humble. Remember that you want to work together to come up with a mutually beneficial arrangement. On that note, be open to compromise. Even though money is an extremely important and stressful issue, it is still just one issue that you must overcome like any other. Do not expect to get your way completely. Compromise will be necessary. It won't be easy, but it is important that you and your partner come to agreement.

Step 2: Assess Your Financial Goals Together

Come up with some big-picture goals with your partner. What do you and your partner want in life? Would you both like to save for a retirement? Do you both want children? Are there vacations you would like to plan together? All of these goals require careful consideration. Having mutual goals will motivate both of you to work together on saving for what you both want.

Step 3: Come Up With a System

Once you and your partner have agreed on your financial goals, figure out a way you will save for them. Come up with a budget based on your goals and your combined incomes. Agree that neither of you will make impulse buys over a set amount before discussing it first. Finally, decide on a banking arrangement that works for both of you. You may want to set up a joint savings account that you use to pay bills and hold your main savings. You could also open up separate savings accounts for personal use.

Conclusion

It is unlikely that these three steps will work completely the first time around. You and your partner will most likely have to keep working on fine-tuning your system. Try to come up with proactive solutions rather than point fingers. Remember that like any argument, you must work together to find resolutions.

If you are in debt and would like to find out more about the legal options available to you, give us a call at 888.743.5787 or fill out our free legal evaluation form.

http://www.legalhelpers.com/legal_helpers/brc_articles_partner_money.html

How to Save Money on Your Wedding

Your wedding will be one of the most important, joyful days of your life. Many people spend a lot of money on their weddings. In fact, Bride Magazine reports that most couples spend between $18,000 and $22,000 on their nuptials. However, you do not need to mire yourself in debt to enjoy your special day. You can easily cut wedding costs in a variety of ways.

Planning

Discuss your wedding budget with your partner first, before you begin any plans. This is the easiest way to keep your wedding spending at bay. You and your partner should also come up with your wedding priorities. That way you can cut other wedding costs that are less important to the two of you. For example, if you or your partner really wants to have expensive floral arrangements at your wedding, you could then opt for cheaper catering.

Wedding Gowns

There are a variety of ways to find bargains for on wedding gowns. You could buy the gown on consignment or rent one for the day. You could enjoy special sentimental value from borrowing a gown from a mother, sister, or in-law. Think about it, are you ever going to wear it again? No matter how you buy your dress, it helps to begin shopping at the end of the bridal season to find the best deals.

The Reception

Try to keep your guest list to a minimum.

Consider having your reception at a national park or your or a friend's backyard. Buffets are less expensive than sit-down meals. Drop-off catering is another low-cost option.

Other Money-Saving Wedding Tips

Buy your invitation stationary all at the same time. Make sure your invitations do not weigh too much, because you might have to spend more on postage otherwise.

Plan your wedding day on a Friday or a Sunday during January, February, or November. Weddings are less commonly scheduled for these times. You will more easily find bargains as a result.

When you buy your flowers, give your florist your budget up front. Also tell your florist you want the flowers that are in-season and locally available. He or she should be able to help you find what you are looking for.

Wedding Insurance

You may want to look into insuring your wedding. Wedding insurance typically covers your costs if your wedding is cancelled due to the death, injury, sickness, or pending military service of a member of your bridal party. Insurance would also cover photography costs if your original photos were damaged, new wedding rings if your originals were lost, and the replacement of wedding gifts if yours were damaged, stolen, or lost. Make sure that whatever policy you do decide to take out fits your needs.

Conclusion

You will remember your wedding for the rest of your life. The amount of money you spent on your wedding is really not important. What is important is that you enjoy your special day with your family, friends, and the person you love most, your new spouse.

If you are in debt and would like to find out more about the legal options available to you. Give us a call at 888.743.5787 or fill out our free legal evaluation form.

http://www.legalhelpers.com/legal_helpers/brc_articles_wedding_planning.html

Christmas Spending Types

Christmas is typically a very exciting time for most people, filled with family, holiday parties, gifts and good cheer. However, Christmas can also be a very stressful time because of the financial obligations resulting from the holiday. The Christmas holiday typically leaves many people spending more money than they anticipated or could afford. It also leaves people with credit card bills that they will be unable to pay in a reasonable amount of time. There are many ways to avoid or minimize the affects of Christmas spending. Many of the tips below will help to avoid the overspending that many people deal with.

Budget Money Monthly

Putting away money throughout the year will help to minimize the financial burden that you will feel immediately after the holidays. By saving as little as $25 a paycheck it will leave you with $600 of holiday spending cash. This is a lot of money that will not find its way on to your credit cards where it will be gaining interest every month. It will also prevent huge credit card bills entering the New Year.

Purchase Gifts Throughout the Year

Another way to avoid over-spending during the holiday is to purchase gifts throughout the year. By purchasing gifts throughout the year, you are able to spread out your spending and also take advantage of sales and special offers that arise at different times throughout the year. Although many people want specialized gifts or specific items, there are always opportunities to buy meaningful gifts throughout the year for less than they would cost around the holiday season.

Cook or Make Gifts

Gifts do not always have to have labels or cost money. A good way to show people you care is by spending time baking or crafting gifts. This is an excellent way to cut down on spending as well. Cookies, cakes and other baked gifts always make excellent gifts and show that you care. Another great gift is handmade scarves, hats, and pictures. All of these items show how much you care because you spent the time to make a gift for your loved one. It also will save you a lot of money by avoiding having to purchase these expensive items at the store.

Set Limits

Before the holidays start, it is best to sit down and decide what you can afford to spend. By setting limits, you will ensure that you do not over-obligate yourself into spending money that you can not afford. This is the best way to make sure you do not make purchases that you will be paying for the rest of the year. If you have purchased gifts throughout the year, you will find you do not have as many gifts remaining to purchase.

Leave the Credit Cards at Home

When you do your holiday shopping, leave your credit cards at home. Christmas is a time of impulsive purchases. If you do not have your credit cards with you, it will force you to think about each purchase before you come back to make it. This will allow you to make sure that this is a purchase that you want to make without succumbing to the "heat of the moment". This will help to curtail holiday spending that you may regret later.

Conclusion

Hopefully, these suggestions will help to ensure that you do not overspend or obligate yourself to holiday purchases that you will regret later. By spending cash and minimizing your big purchases, it can ensure that you have a healthy financial situation heading into the New Year.

If you are in debt and would like to find out more about the legal options available to you, give us a call at 888.743.5787 or fill out our free legal evaluation form.

http://www.legalhelpers.com/legal_helpers/brc_articles_christmas_spending.html

G.M. Layoffs Foretell Increase in Bankruptcy Filings

America's largest car manufacturer, G.M., recently announced that it will close twelve car plants in the US and Canada and slash 30,000 jobs in the next 12 months. With 325,000 employees world-wide, it currently has more employees than any other industrial company.

G.M.'s Saturn plant, built in Spring Hill, Tennessee, and intended to develop innovative techniques to compete with foreign cars at a time when auto companies were closing plants and cutting hundreds of thousands of jobs, will also cut about 1,500 workers at the plant. These were all jobs that G.M. originally assured their employees were guaranteed, but cut as the company shut one of two assembly lines at one of the most famous factories in the country.

More Saturn layoffs on the horizon

Another 4,000 jobs at Spring Hill, the second-youngest plant in GM's American network, are also at risk of being eliminated. Among other plants that G.M. plans to close are its highly regarded plants in Oklahoma City and Oshawa, Ontario. Each has won the title of the best plant in North America by J. D. Power & Associates, which publishes an annual ranking according to efficiency and quality. Similar layoff announcements are expected at the assembly plants of leading competitor Ford.

Layoffs lower consumer confidence

These layoffs at G.M. and other plants lower consumer confidence as individuals become concerned that stable jobs with good health care and retirement benefits are becoming rarer. The United Auto Workers Union told the BBC News recently, "Hope is diminished, the future is unclear and communities are less stable." With twelve plants closing, G.M.'s hardships will harm towns across North America, not just in its home state of Michigan. Corporate restructuring expert John Challenger told Reuters, "Retailers, restaurants, real estate, home improvement stores... will all see business decline."

The economic hardships imposed on former employees of companies undergoing lay-offs, as well as workers in the surrounding communities are obviously severe and quickly translate into increased bankruptcy filings in the regions surrounding the troubled companies. Our firm receives an increase in call volume from individuals interested in learning about bankruptcy relief upon announcements of job layoffs in the area. We are not alone in our observations. An analysis by the Winston-Salem Journal, as reported by the June 30, 2003 article in journalnow.com, concluded that personal bankruptcies in the middle district of North Carolina increased by about 25 percent from 2000 to 2002, after studying court statistics. Many of the largest increases took place in working-class areas close to where major layoffs occurred

http://www.legalhelpers.com/legal_helpers/brc_articles_gm_layoffs.html

Are you living beyond your financial means?

In a society where teenagers are offered credit cards and most people are offered loans almost daily either through the mail or online, it is no wonder that many Americans are debt-ridden and spend more than they can afford. About 43% of American families spend more than they earn each year. According to a recent Federal Reserve Bulletin article, U.S. households in the aggregate have devoted an increasing share of their after-tax income to the payment of financial obligations over the past fifteen years. The ratio of credit card payments to disposable income rose more than payments to any other type of financial obligation.

Americans aren't saving enough

Survey after survey shows Americans just aren't saving enough. American consumers owed $1.9773 trillion in October 2003. That's equates to $18,654 per household, notwithstanding mortgage debt. The increase in the availability of credit cards for the average consumer has enabled more and more people to stay in debt. For Americans with credit cards, it is more and more common to spend more than one earns and let the credit card cover the purchases. Access has increased, and the share of households with at least one credit card rose from 70 percent in 1989 to 76 percent in 2001. According to CardWeb.com, at the end of 2002, American households owed an average balance of $8,940 on credit cards, up 36 percent since 1997, and an enormous 173 percent increase over the last 10 years.

Why savings matters

The problem for these people is that they will find it difficult to cope with the pressure of an emergency such as job loss, sudden death in the family, or medical emergency. Ultimately a good portion of these people must turn to bankruptcy as the only means possible to alleviate the debt as they can no longer keep up with their monthly expenses.

Warning signs that you may be living beyond your means:

• You use one credit card to pay another card payment.
• You have more than a few cards and balances that keep rising
• You must charge your groceries or utilities just to get by
• You take out more debt to pay existing debt
• You must take out cash advances to pay your monthly living expenses
• You continually only pay the minimum amount due on charge card accounts
• You avoid your mailbox or never open your bills

http://www.legalhelpers.com/legal_helpers/brc_articles_beyond_means.html

Increased Credit Card Minimums and what they mean to consumers and lenders

The typical American carries a credit card balance each month. In fact, 7% of credit card holders only pay the minimum payment each month. By paying only the minimum payment, it also ensures that the money spend on these debts will eventually reach two to three times the initial purchase.

Credit card minimums to double

Credit card holders who only make the minimum payments will soon be in for a rude awakening. Credit card companies have typically set the minimum payment for credit card balances at 2% of the outstanding balance. However, new guidelines set fourth by bank regulators are going to lead to an increase in these payments. Under pressure from the National Reserve, the minimum credit card payments will soon double. Many banks, including MBNA, Citibank and Bank of America have already announced that they will be doubling their minimum payments. Minimum payments will soon range from 3% to 4% of the credit card balance. The rationale for this increase is that the minimum payments will never satisfy the debt that most people have. By forcing an increase in the minimum payment, it will force the card holder to pay on their principle each month. Under the current structure, the 2% balance barely covers the monthly interest and leaves very little to be applied to principle. This means that most people are just paying their interest each month and making no head way on the principle balance.

What this means for consumers

This is good news and bad news for everyone. The good news is that this new structure will force many people to get out a debt sooner than they traditionally would have. It will force them to make payments on the principle each month that will lead to the elimination of their debt much sooner. However, the down side is that it will double the amount of money that most people will have to come up with each month. If a person has $10,000 in debt, their minimum payment each month would have been $200 under the 2% system. However, under the new system, the borrower will have to come up with $400 a month, or an additional $200 a month. The reality of the situation is that people who can make the increased minimum payments will benefit in the long run from this structure. However, many people live paycheck to paycheck and will not be able to meet the minimum payments and still afford their living expenses. These people will be forced to file bankruptcy or begin to default on their credit card debts or other current monthly obligations, such as utilities, car payments, or housing expenses.

What this means for banks

Banks fear both the short term bankruptcy problem and the long term problem. The long term problem from the banks perspective is reduced profits. The fact that these guidelines were actually passed in 2003, but are only now being implemented illustrates the banking industries fears. Banks realize that they were making more money when people were making only the 2% minimum because the principle was never being reduced. Banks are also aware that when their clients are forced to double their payments, it will force a lot of them into defaulting on their bills. Banks also fear that this new structure will actually force more people into filing bankruptcy. For these reasons, the banks tried to delay this new structure as long as they could.

http://www.legalhelpers.com/legal_helpers/brc-articles-credit-card-minimum.html

The New Credit Scoring System: VantageScore

On March 14, 2006 the nation's three consumer credit reporting bureaus - Equifax, Experian and TransUnion - jointly announced that they have collaborated on a new credit scoring system. The reported purpose was to simplify and enhance the credit process for consumers and lenders. The new system is named VantageScore(sm) and was formulated in reaction to demand for a consistent and objective approach to a credit scoring system across the major bureaus.

The goal is consistency; variance still likely

VantageScore touts that the greater consistency will be a result of an identical scoring algorithm and leveled credit characteristics across all three bureaus. They claim that deep knowledge of the data ensures the most accurate scoring algorithm attainable and that the applications are innovative.

While the goal of the new system is for greater consistency, it will probably still result in variations from credit bureau to credit bureau. According to the March 14th press release, such variance "will be attributed to data differences within each of the consumer credit files and not to the structure of the scoring model or data interpretation." Equifax expects that VantageScore will reduce the variance by about 30 percent from what it was under the previous model.

Scoring 501-990; A-F

VantageScore says that its scoring system of the range from 501 to 990 makes the scores easier to understand and apply. It will also group scores into alphabetic categories covering a 100 point range that will give lenders to a re-tooled version of the old A, B, C credit rankings. Each of the three bureaus will market and sell VantageScore under separate licensing agreements. It is commercially available today.

Critics still anticipate errors

Critics have been expressing concern that the new system does nothing to address the underlying problem of errors within the data bases upon which the scores will be based. "There is still a huge problem with the data being reported to the agencies," says Evan Hendricks, editor and publisher of Privacy Times newsletter and author of "Credit Scores & Credit Reports: How the System Really Works, What You Can Do."

http://www.legalhelpers.com/legal_helpers/brc_articles_vantagescore.html