• Skip to content
  • Skip to primary sidebar

Arizona Debt Consolidation Quote

See your debt consolidation options in Arizona AZ

debt refinancing

How to Make Your Financial Future Secure for Good

October 26, 2015 by arizona

Your current financial situation may feel secure, but you may have wondered about how to make your financial future good in the long term. The idea of investing your money or purchasing insurance can seem daunting, and fortunately, there are many other solutions for creating a secure, stable financial future that don’t necessarily involve large economic decisions.

[Read: 3 Solid Ways to Ensure Your Financial Security]

If you’re motivated and ready to make your financial future good — actually, great — in the long-term, here are several steps you can take to ensure a stable and secure financial future.

10365-Money-Saving-Medical-Bill-Tips-Spry__crop-landscape-534x0

Envision Your Future

A simple method to make your financial future good in the long term, envisioning your future helps you to create a concrete economic plan. If you know what your ideal retirement looks like, or whether you want an early retirement, you can save according to these outlines. Knowing what you want and when you want it guides you in your savings. Once you figure out how much you need to save to reach that goal, you’ll inevitably realize how often you’ll need to save. With habitual, frugal saving, you can easily reach your goal in the designated time, and ultimately prepare yourself for a financially secure future.

Decrease the Ratio of Expenses to Income

If you’re spending more than you’re making, or just breaking even, you’re not adequately saving for the future. Capping your spending at a certain point each month can drastically change the balance of your savings account. Taking into consideration your monthly income, bills, and other necessary expenses, you can then find a number you’re comfortable with spending every month. This may require a few daily or monthly sacrifices, but it’s all in the name of trying to make your financial future good from retirement and beyond. If you’re still stuck on how to adequately decrease your spending, there are plenty of how-to guides that explain how to decrease your expenses without compromising your lifestyle in a dramatic way.

Create a System of Saving, Automatically

You may be having difficulty allocating a portion of each paycheck to your savings account. Sometimes the temptation to shop or go out on the town is too great. If that’s the case, setting up a direct deposit from your paycheck into your savings account can help you to make your financial future good on a long-term basis. If you don’t receive your pay checks through direct deposit, you can set up a date with your bank to transfer a portion of the funds in your checking account to your savings each month. This system treats your savings as an ordinary bill or mortgage payment: a necessary expense that you aren’t able to touch or spend. Out of sight, out of mind, right?

Review Your Accounts Each Day

To get a concrete idea of your spending habits and your total income, check in with your banking or budgeting app every day. You’ll be able to see your income, your spending, and your balance, as well as purchases that might have been ill conceived. Paying close attention to your financial details on a daily basis can allow you to keep track of your budget and keep you on top of any impending issues before they became a problem. To make your financial future good, you need to be vigilant; leaving your budgeting up to someone else or allowing it to evolve on its own won’t have the same benefits as being an integral part of your budgeting process.

Downgrade What You Can

Keeping up with the Joneses can be extremely tempting, but in the long-term, it actually has an inverse affect on the stable, secure future you actually desire. Downgrading your house, your car, or miscellaneous items you own can lead to an increase in your monthly buffer. Choosing a car that may not be the fanciest, but which ensures good gas mileage and inexpensive maintenance fees will allow you to have an extra bit of cash to add to your savings account each month. To make your financial future good in the long-term, you must be willing to sacrifice certain elements of your life that are too lavish for your income. Once you get in tune with a modest lifestyle, you’ll find that purchases you intend to buy become less and less lavish, as your frugality becomes a habit and your priorities sharpen.

Smiling happy  elderly couple in summer park

That’s not to say you have to downgrade your life — establishing priorities and knowing what you want in the present and in the future can enable you to make wise financial decisions. If you really love your platinum gym membership, for example, you can:

  • Find a way to downgrade another facet of your lifestyle
  • Keep your gym membership but downgrade to a basic account
  • Seek out another gym that offers the same features of the platinum membership but for less

[Read: Is a Debt Management Plan Best for You?]

There are plenty of ways you can downgrade elements of your lifestyle without sacrificing things you truly care about — and while still keeping in tune with your monthly budget to make your financial future good (if not great) in the long term.

Filed Under: debt management, debt refinancing Tagged With: debt management, Financial Future Secure

What You Need To Know About Refinancing Your Debts

June 16, 2013 by arizona

What You Need To Know About Refinancing Your DebtsRefinancing your debts is the best way that you can consolidate both your secure and unsecured loans. If you are burdened with mortgage, credit card, medical bills, utility dues and other types of debt, this is something that you can consider. You refinance your mortgage – meaning, you put your home on the line so you can adapt a lower interest rate, longer payment term and possibly have extra to pay off your other debts.

While that may seem appealing, you need to understand what refinancing is all about before you choose it as your debt solution. Like other debt relief programs, this can work perfectly for some while it can lead to disaster for other financial situations.

First of all, you have to understand why you are refinancing your mortgage. If you want a solution that will actively take on your debt payments, then this is not your solution. This only restructures your debt and does not really pay it off.

Most of the time, your goal in refinancing should be to consolidate your debts to allow you to make better progress in your payments. The single payment scheme will allow you to put in less effort in monitoring your debt and more into growing your income.

Another goal of refinancing is to get a lower interest rate. This happens because it extends your payment term to 15 or 30 years. If you do not like a term that long, then refinancing is not for you as well. Debt consolidation loans may prove to be the better option as it usually takes only 5 years. But even if the term is very long in refinancing, you can really benefit from the low interest.

This type of debt solution will allow you to make lower monthly payments and the low interest may be appealing for those who want to solve high interest credit card debt. But remember, you could end up paying more in interest. You are only relieving yourself of high monthly payments but if you total it, you actually increased your overall debt payment.

The key to making this successful is to do it only once. Believe it or not, people sometimes refinance several times. This happens because they do not have the discipline to correct past mistakes. The single payment can be deceiving in the sense that it gives consumers the false sense of security and thus prompts them to reuse the credit cards that were paid off by the refinancing. This puts them in a tight spot once more and prompts them to do another refinancing. It becomes a cycle that you need to be careful of. Do it once and make sure you learn your lesson so you never incur more debt.

Refinancing a mortgage will entail costs and you have to think about that. You need to pay off closing costs for you to complete your refinancing. Before the lender approves of the loan, they need to have the home appraised and that involves costs that you will shoulder.

Bottom line is this – make sure you are going through refinancing with the right intentions and with a clear and solid plan to pay it off. Check out your old loan and see if there are prepayment penalties. Do all the appropriate calculations to make sure that it will do you well financially to go for this type of debt relief option. See if it will help you achieve your financial goals – not just making your life easier in terms of debt payments.

Filed Under: debt consolidation, debt refinancing, debt relief tips Tagged With: debt consolidation, debt refinancing, debt relief, debt solution, refinance mortgage

Primary Sidebar

Recent Posts

  • 5 Ways to Find a Financial Role Model
  • How to Drop Bad Money Habits
  • The Gov’t Aims To Protect Low-Income Users Of ‘Payday’ Loans
  • Advantages of Small Money Moves
  • How to Earn More on Your Savings

Pages

  • Arizona Debt Consolidation Quote
  • Contact Us
  • Disclosure
  • Privacy Policy
  • Sitemap

Copyright © 2022 · Genesis Framework · WordPress · Log in