Lose Your Debt Weight: Try A Cash-Only Diet

Lose Your Debt Weight:
Try A Cash-Only Diet
C
ash-only, or cash-mostly, spending
may be a good practice to incorporate
into your budget. A recent report by
FiLife.com, a financial information website in
partnership with The Wall Street Journal, found
that consumers could save 12 to 18 percent of
their income if they primarily used cash.
Acquiring A Taste
There are various benefits to cash-only
spending. For example:
• Organizing your finances could get
easier. If the bulk of your transactions are made
using cash, you will no longer have the need to
balance your checkbook for every purchase you
make.
• You could get a better idea of your
spending habits. If you create a strict budget
your needs, find a total and divide by four (for
each week). If you wish, once you have your
needs totaled, you can also calculate a weekly setaside amount for disposable income. For help,
consider using the chart at right.
Your
Cash-Only
Budget
• Decide what form of ‘cash’ to spend.
There could be some expenses in your budget
that may be better paid using checks, a debit
card or electronic/automated bill pay. Bankissued debit cards carrying a major credit card
logo are accepted like regular credit cards with
the bonus that money is debited straight from
your checking account. If you choose to use
debit cards, keep in mind that you will need to
keep track of and deduct all debit purchases in
your checkbook to avoid overdraft fees.
• Get Organized. Once you have a weekly
number, it may be a good idea to think about
how you can organize your money once you
cash your paycheck. You may want to give the
‘envelope method’ a try.
Monthy
Expenses
Rent/Mortgage
Heat/Gas
Water/Sewage
Electric
Cable
Telephone
Internet
Auto Payments
Auto Insurance
and set aside a specific amount of cash each week
for your necessities, you may be able to look at
what’s left and consider your wants and needs.
Tracking your budget may also become easier.
When you cash your paycheck, think about
separating your decided dollar amounts and put
each amount in a ‘needs’ envelope labeled rent,
cable, telephone, etc.
• The real money concept. Perhaps seeing
and feeling your hard-earned cash could help
you avoid falling into the impulse-buy trap. As
Fiscalfizzle.com explains, you may be more apt
to purchase things you really need if you have a
set amount of cash in your wallet that must last
you an entire week for gas, groceries, etc.
You could calculate each envelope’s total
whenever you make a deposit. At the end of the
month you should have the amount for each
category in the envelope. You can either pay
those bills in cash or deposit that amount into
your checking account and pay using a check,
debit card or online payment.
Clothing
Better budgeting requires discipline and
organization, qualities necessary to lose your debt weight.
For some people,
the cash-only or cash-mostly
option can be
a recipe for
financial
success!
Total Monthly
Income
The Sample Platter
If you’ve decided that cash-only might be
for you, how do you begin? Here are a few
suggestions:
• Start with a budget. How much do
you need to set aside for your regular bills and
expenses each month? Try to include regular
expenses, such as quarterly insurance premiums,
that may not necessarily come around monthly.
Consider your income, fixed expenses and what
you typically have left over. Try adding up all of
VOLUME 9
#1
Set
Total Per Aside
Month Weekly
Transportation
Daycare
Food
Medical
Education
Negotiation Co.
TOTAL
(minus) Total
Monthly Expenses
-
Difference
Divide Each Monthly Expense by four to
get your weekly ‘set-aside’ amount.
Lose Your Debt Weight: Try A Cash-Only Diet • Inspiring Thoughts • Spare Change • UCAN
With A Little Creativity, Dates Can Be Fun And Inexpensive • Get It Together: Take The Stress Out Of Tax Filing
Corner
UCAN Strives To Help You
W
e would like to remind you of the
services that UCAN provides and
also offer a few helpful tips.
Maintain detailed call logs. The first
step in protecting yourself from abusive debt
collectors is tracking the calls that you receive
from them. In order to help you with this task,
UCAN provides call log sheets, which you can
complete online or download from www.ucan.
net. Call logs completed online will be kept
secure and sent directly to UCAN staff. When
tracking your calls, remember to log the name
of the agency and individual collector along
with the phone number of the debt collection
company. Keeping call logs does not mean
that you need to speak to the collector. You
may screen your calls by using anonymous call
rejection, caller identification or answering
machines.
Do not erase threatening or abusive
messages from collectors. Contact us
immediately if a collector leaves a disturbing
message. This piece of information may be
valuable if our attorney network believes the
collector violated the Fair Debt Collection
Practice Act (FDCPA).
Keep written correspondence. If you
receive mail from collection agencies, and you
notice your account has changed hands or been
sold to another collector agency, contact us as
soon as possible so we can update our records.
Also, keep in mind that by law, a collection
agency is not allowed to send you a postcard or
print any verbiage on an envelope alluding to a
delinquent debt.
Know your rights. UCAN strives to
Get It Together: Tackle Tax
Filing Stress Today
E
arly organization can help you avoid
last-minute panic and costly mistakes
when preparing your taxes for the
April 15 deadline. Here are a few tips from the
Internal Revenue Service.
one employer
last year, be sure
you collect all
W-2 and 1099
forms from each.
Get your records together. Try to get
started now by gathering all necessary forms
for tax filing including statements, receipts,
canceled checks or documents that support an
item of income or a deduction you plan to take
on your return. Consider a safe place in your
home to keep all of these documents together.
Also, gather social security numbers you may
need including numbers for both you and your
spouse if you file jointly as well as those of any
dependents you claim.
Consider
how you
want to file. You may get your return faster if
Review Schedule M. You should have
to file this new tax document if you received
money from the ‘Making Work Pay Credit’
or the ‘Government Retiree Credit.’ If you
received an extra $400 (individually) up to
$800 (if you are married filing jointly), you
should check your records now to make sure
you did not receive too much. You can review
Schedule M on the
IRS website at www.
irs.gov and roughly
calculate whether
you could lose some of that credit
when you file a tax return.
educate everyday Americans on consumer
advocacy topics and rights. Our web site, www.
ucan.net, also offers helpful articles and links to
sites that may be of interest to you.
Contact UCAN. Contact us at 1-877-4628226 or e-mail us at [email protected]. Business
hours are Monday through Thursday 9 a.m. to
7 p.m. EST and Friday 9 a.m. to 5 p.m. EST.
Obtain all necessary
forms from your
employer. If you worked for more than
you e-file your taxes electronically. According
to www.irs.gov, two out of three taxpayers
used e-file last year. E-filing software calculates
your taxes for you, which may be a bonus for
those who are apprehensive about the math
calculations required on tax forms. If your
income is $57,000 or less, visit the IRS website
to see if you are eligible for free tax preparation
software and free electronic filing. You may
opt to fill out the forms yourself or go to a
professional tax preparer. Whichever way you
choose, consider the direct deposit option on
your form. Refunds are typically received faster if
directly deposited to your bank account.
Collect all necessary IRS forms. If you
are not e-filing, you may want to obtain extra
backup forms by visiting your local post office
or library. In addition, many forms can be
downloaded at the IRS Forms and Publications
web page at irs.gov/formspubs/index.html.
The IRS is here to help. Visit www.irs.gov
for tax return tips, forms, answers to frequently
asked questions and updates on tax law changes.
Call IRS customer service at 1-800-829-1040.
Remember! Your debts could be settled
faster if you put as much of your tax refund as
possible into a negotiation company reserve
account.
Bargains By V
The Bagful!
arious internet websites can be fun and helpful
for frugal-minded consumers. Below you will find
a few popular sites suggested by www.getrichslowly.org.
However, keep in mind that a deal is only a deal if it is a
good price on something you really need. Also, consider
whether or not you want to disclose personal information if sites ask you to register.
www.couponmountain.com. This site features free coupon codes,
bargains and sales from more than 2,000 online stores.
www.fatwallet.com. A discussion forum, coupons and cash back
offers abound on this site recommended by MSN Money, CNN and
Newsweek among others.
www.absurdlycool.com. The Absurdly Cool Freebie Finder site is
designed to collect offers for freebies while filtering out most scams and
referrals. Feedback and suggestions from visitors are used to improve listings.
www.mygrocerydeals.com. If you want to learn what’s on sale this week at your local
grocery store, this site provides online grocery flyers and nutrition information for most products.
With A Little Creativity, Dates
Can Be Fun And Inexpensive
W
hen it comes to dating,
using a little creativity might
help you save money and
have more fun. Here are a few fun date
suggestions whether you’re going out with
someone new, planning a family outing
or spending special moments with a longtime significant other.
Take a hike. According to Redbook,
a leisurely walk in the woods might be
the perfect way for active couples to get to know each other better. You
may want to check out www.localhikes.com or www.trails.com for a listing
of treks in your area. In addition, www.betterbudgeting.com suggests
spending the day at the beach if you live near one or find natural scenic
spots in your area to explore on your dates.
drive-ins
Discover, or re-discover,
. Help preserve an
American icon! Drive-ins are typically less costly than regular Cineplex
movies and could also offer snack bar selections less expensive than a
regular theater. In addition, you can stargaze between movies! For locations,
try visiting www.driveinmovie.com.
Pack a picnic. You don’t have to be a master chef to whip up a creative,
healthy picnic lunch. Find a great spot to eat and make the experience as
casual or romantic as you wish.
Enjoy the local architecture. Many historic or culturally-significant
locations can be enjoyed for free or a small fee. Aside from providing a
backdrop for a great date, these sites also offer an opportunity to learn more
about the area you choose to explore.
Learn a new skill together. Is there a skill you’ve always wanted to
learn or a new hobby you’d like to try? Perhaps your date would like to try
it as well. Start by collecting all the information you can and spend a day or
evening learning it together. Whether you have a desire to learn card tricks
or try your hand
at juggling or
photography,
you and your
date could learn
a new skill while
learning about
each other.
Market
Yourself.
Farmers markets,
swap meets, craft
shows and street
fairs usually require no entrance fees. Attending an outdoor event could
give you and your date an opportunity to enjoy each other’s company in a
relaxed setting while getting an idea about each other’s interests.
Animal magnetism. Visiting the zoo is fun for all ages, especially
those who love animals. Watch your local paper or zoo website to find out
about special promotions or holiday discounts.
Book Lovers. Consider attending a poetry or book reading together.
Most of these
events are free and
you might learn
something new to
discuss over coffee
later.
For more
creative date ideas
and suggestions,
visit www.
coolestdates.com.
consumer.gov/ncpw features a blog where
visitors can discover new consumer
resources in an informal and interactive
setting. Blog topics include ‘For Kids,’
‘Health’ and ‘Money.’ Visitors will also
have the opportunity on the site to connect
with representatives of participating public and
private consumer protections organizations.
To help introduce youngsters 12 years of age
and under to consumer and business concepts,
the NCPW will feature various links and
resources on their site for parents and their
children. Featured videos and games could help
younger visitors become more aware of key
consumer concepts like credit and identity theft,
banking and fraud, marketing and advertising.
For more information about the NCPW, go
to www.consumer.gov/ncpw.
Spare Change
News, financial tips, and
other information regarding
personal financial freedom
A Cause For Consumer
Protection
M
arch 7-13,
2010 marks
the 12th
annual National Consumer
Protection Week (NCPW). The campaign aims to
encourage individuals across the country to take full advantage of
their consumer rights.
This year’s theme, ‘Dollars & Sense: Rated
“A” For All Ages,’ will highlight the importance
of using good consumer sense throughout .
all life stages. The NCPW website at www
Payroll card popularity on the rise
Many larger retailers and various public and
private employers across the United States have
been issuing payroll debit cards, or pay cards, to
their employees rather than paper checks.
According to the American Payroll
Association, pay cards operate much like a
bank-affiliated debit card, complete with a PIN
number. Employees may use pay cards for ATM
cash withdrawals, point-of-sale (POS) purchases
and online purchases. There is no need to cash
a paycheck and users have immediate access to
funds directly deposited on the card.
Payroll cards may be most beneficial for
workers who do not have a regular bankaffiliated checking account or those who must
pay high check cashing fees.
Drawbacks, depending on employer and pay
card vendor, may include fees and conditions to
withdraw money.
Also, some employees may find it more
difficult to
track their
expenditures
and budget
their money
if it goes
directly onto
a pay card.
Inspiring T h o u g h t s
tackling today’s range in the wild, beautiful west. What
Courage is being scared to
characteristics do they possess that could possibly help us
death…and saddling up anyway. in our journey through life?
Believe in what you are doing. If you are
- John Wayne passionate about what you want to obtain, you may have
O
ne of the great things about life is that each
day offers us a chance to ‘saddle up’ and start
over. However, it can take a bit of courage to
change old habits.
For those of us facing adversity now, whether it’s
personal or financial, freedom might be within our grasp
if we have the courage to take things into our own hands.
We may get knocked down a few times during our quest,
but each new day offers us another chance to get back in
the saddle.
You may be asking yourself, “What can I do to garner
the courage to ‘grab the bull by the horns’ and tackle the
good, the bad and the ugly in my life?”
Consider heroes from classic westerns such as
‘Bonanza,’ ‘Lone Ranger’ and ‘Gunsmoke,’ to name a
just a few, as well as all the real-life cowboys and cowgirls
a better chance of success.
Have a goal. What is truly important to you in your
life? Is it worth fighting for?
Hit the trail hard. Try not to let setbacks deter you
from your goal. Keep forging ahead and try not to let
discouragement keep you from achieving your goal.
Stay focused. Even if you
get discouraged, keep trying.
The courage to find success
may be within you.
Consider the advice of another classic
cowboy, Clint Eastwood, who once said,
“Sometimes if you want to see a change
for the better, you have to take things
into your own hands.”
The Road to Financial Freedom (RTFF) is published by The Premier Institute for Financial Freedom. While articles in the RTFF newsletter are factual and accurate, they are not intended to replace the advice of professional financial,
accounting, and/or legal advisers. As with all decisions regarding your finances, the advice, techniques, ideas and suggestions offered herein should be followed under the supervision of the appropriate competent professional.
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