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What Will You Splurge On? “I paid too much for it, but it’s worth it.” – Samuel Goldwyn Who hasn’t felt that way about a purchase from time to time? When it comes to being in control of money and sticking to a pre-set spending plan, most people feel that splurging is a bad thing. However, according to Harvard Business School researchers Anat Keinan and Ran Kivetz, splurges are actually good for our mental health for a couple of reasons. Polling both college students and alumni about spring breaks, they found that regret about not having spent more money or traveling increased over time, while regrets about not studying or saving money during the breaks decreased over time. They also found that business people showed a similar pattern when considering their past choices between work and pleasure. Those who continually kept their noses to the grindstone ended up feeling like they’d missed out on the pleasures of life. Those who indulged had some excellent memories to look back on, and perhaps a terrific coat in their closet or TV in their living room. Given the results of the research, as well as the real-life experience of 99% of the population, it appears that splurging is a part of the human condition that we should embrace, if not with open arms then at least a friendly handshake. So how do you make friends with the urge to spend without letting that impulse run rampant? The first step is to be very clear about your personal goals and values. If you value education then shelling out for a course might be exactly the right kind of splurge. If you know you are going to be renovating your house, you may opt for a good collection of power tools. These are the kind of splurges that are better seen as investments because they hold their value and support your lifestyle. The next step is to recognize that you have the ability to control every dollar that leaves your wallet. You can get started on that road by making a written note of every purchase you make for a period of at least 30 days. Do this not to judge them, but to see what your true spending patterns are. You might spend $3 a day on a coffee and donut with the gang every morning and actually value the time spent with friends more than the donut. Now it is up to you how much of a splurge you want to make. Perhaps there’s a larger purchase you’ve been putting off for “someday when I have money” and you can use that extra $3 a day for your purchase fund. Alternately, maybe you’ll decide to save your change just for “guilt-free” coffee and donuts. The choice is yours. A delayed splurge is also just as fun. While saving for the big spend, you’ll want to become an informed shopper, and by keeping a shopping list of items you would like to splurge on or that you plan to splurge on, you will be gathering information about price and value. Your ‘shopping list’ that you create while you’re out and about, but not really spending the money, then becomes a tool to help you set goals and prioritize your splurges. To enjoy your splurge guilt free, it’s always best to use cash whether you are enjoying a small splurge (like a mocha frappucino with whipped cream and chocolate sprinkles) or a large splurge like a last minute trip to Hawaii – there are no rules that forbid paying for your airline ticket with cash. Not only does this practice keep the splurge in real time so there is no ‘buyer’s remorse’ when the credit card statement comes in, but the simple act of handing over a fistful of dollars will totally reinforce the feeling of abundance and control of your money. If you absolutely have to use a credit or debit card for your splurge then be mindful of the value you receive for your splurge, both now and over time and pay the bill with gratitude when it comes into your mailbox. Gratitude, not guilt, is the overriding factor when we are spending for pleasure.

Financial Advice Can Help You Save For Your Future We all wish that would could be doing much better financially, right? Well truth is and we all probably know this is that there are many people who are trying to either get out of debt, they are looking for ways to make money plus they are trying to find ways to save their money and some may even be thinking about retirement. What a lot of people don't know is that it would truly be in their best interest to seek personal financial advice so that they can learn how to budget. A lot of people probably have no idea where their money goes each and every month and may often find themselves asking "Where has all my money gone? ". So what do you think? Is it time to look into some finance advice and begin some financial freedom? Here's some financial advice for you that you might enjoy. No matter how much you make, even if it's a little bit, always try to save some, even a little. One thing to always keep in mind is that your financial situation isn't going to get better over night. However every time you make a financial decision it will make a small difference. You always want to stick to your goal's similar to that as if you are working at loosing weight. Don't become frustrated, stick to your plan and in time you will begin to notice the difference. Always make sure you keep realistic goal's and expectations. By committing yourself you will begin to see the difference in your financial situation. One of the best things that you can do would be to try and live below your means. So let's say that you make $35,00 a year. Well start living like you make around $20,000-$30,000 a year. Now is your chance to take that extra $5,000-$10,000 and begin paying down your debt or even invest it. Stop spending it all because in the end you will have nothing to show for it, so competing with your friends, isn't that great of an idea. It will benefit you to receive financial advice so that you can receive as much advice as you need, then you can begin getting out of debt and start living the life you've always wanted too. So what are you waiting for? Now is the time for you to get out there, looking for a financial adviser and begin getting that financial advice that you need. Receive some personal finance idea's and get yourself out of that debt or begin saving that money that you've always wanted too and start thinking about retirement. Or, hey, maybe there's a trip you've always wanted to go on, well now is your chance. So what are you waiting for?

Interest Free Loans - Are They Any Good? Many retail outlets (example - furniture outlets, electronic stores) offer you credit to purchase items from their outlets. For a set period of time, there will no interest charged on the credit they offer. This period varies from store to store and is usually 12 months to 24 months. These loans are called ‘interest free loans’. It does sound too good to be true, doesn’t it - the truth is in most cases it is actually too good to be true. If used properly these loans can turn out to be beneficial to you but on the same token if used incorrectly they will cost you heaps. Unfortunately the number of people losing out on these loans is far greater than people gaining from them. In this blog post I am going to write about some of the main points you need to watch out and remember when you sign up for these loans: 1. After the interest free period ends, interest rates will kick in - these rates will usually be double the rates of a credit card (can be anywhere between 25% and 30%). The rates will not be the same as the official lending rate so be sure to check what your rates are going to be. 2. Most of these loans will ask to you to make a minimum repayment every month (even during the interest free period). If you pay just the minimum amount, the loan will not clear before the interest free period ends. There will be still be an outstanding amount after the interest free period ends and then that amount will be charged interest at very high rates. 3. When the interest free period ends, most merchants start charging interest for the outstanding amount from the day you purchased the item and not from the day the interest free period ended. interest free loans 4. Interest free does not necessarily mean ‘fee free’. They might be charging you unnecessary fees, fees which you normally would not be paying if you bought the item outright or financed it through a normal loan. 5. Sometimes along with the interest free loans you might also get a credit card as a bonus. Again another encouragement to spend more - beware. 6. The purchase price of the item you are purchasing through these loans could be much higher than what other merchants are selling it for. The way to turn the interest free loans to your advantage is to pay off the entire amount before the interest free period ends. Don’t ever pay just the minimum amount - pay more than the minimum amount and finish off the loan as soon as you can. Read the fine print and make sure you understand all terms and conditions. Don’t be afraid to ask questions - it is your money after all. If you cannot repay the loan amount before the interest free period ends then sometimes a low rate credit card can be a better option. So consider all your options and do your sums before you make the decision. And finally, here is the golden rule - don’t purchase an item just because there is an interest free loan. Buy it only if you truly need it. No impulse buying.

Payday Loans Crunch For Developing Countries The payday loan crunch continues to depress ratings in the developed world such as the United States, Australia and the United Kingdom. While the emerging world largely dodged the payday bullet, it is beginning to feel the impact of the credit crunch and the slowdown in the OECD. Inflation is also having an adverse effect on emerging market risk scores. Inflationary pressures are in part due to high fuel and food costs, but also sometimes reflect overheating and capacity constraints. Payday loan lenders are generally behind the curve in tightening monetary policy and will have to raise interest rates aggressively to rein in inflation. This will create strains for households which have borrowed heavily in the boom years, particularly if output growth slows. United States suffered the largest deterioration in its payday scores in July, by five points to 24; Canada had the biggest gains, with its score improving three points to 32. United States payday industry is contracting sharply and default rates are in their second year of climbing. Record levels of household debt create a worrying outlook for payday lenders, which will need to raise fresh capital. Canada, meanwhile, is benefiting from its currency rise in January 2008, which has eliminated the exchange-rate risk of its fast-rising payday debt. Public debts are in reasonable shape, and last year's borrowing surplus was much larger than expected. Payday policy will be loosened in 2008-09, causing the borrowing balance to swing back into deficit, but it will remain well below the Canada's "stability and growth pact" ceiling of 3% of GDP.

How To Pay Off Your Debt Faster With Less Interest Debt needs to be paid off, you have no other option, but you can choose the way to pay it off. If you have a certain amount of money to pay off a portion of your debt each month, you can choose to allocate any extra cash on the highest interest rate debt or the highest amount debt. Both serve the same purpose of paying off your debt, but which one is better? If I were you, I would choose the method that can help to pay off my debt faster and with less total interest. In fact, there is an approach that can help you pay off your debt faster and with less interest. This approach is called Debt Avalanche. By paying your debt using debt avalanche approach, you will pay off your debt faster and pay less total interest to your creditors. How it work? To use the debt avalanche approach, what you need is a list of interest rate of all your debts. Let make it simple by assuming all debts have the same tax liability, but if you want to compile for your debts that have different tax liability, then you need to determine the debts' interest rate after taxes. You will need these interest rates for calculation in debt avalanche approach. Below are the steps involve in the compilation and calculation on which debt to pay more in debt avalanche approach so that you save money in term of interest and be debt free faster: Step 1: Order your debts with highest interest rate to lowest. List your debts on a paper (or spreadsheet if you use software) according to the interest rates, sort them from the highest interest rate to the lowest. Normally, credit cards will be ranked higher as typically credit card interest is 10% to 20% or more. Then, personal loans may be your next highest interest rate loan followed by auto loan, mortgage and home equity loan. Don't border about the balance of each debt, it will not be used in this debt avalanche approach. Step 2: Pay minimum due on each debt Then, add a column on your list or spreadsheet for the minimum amount need to be paid each month. This is the amount you need to pay toward each debt, except the one on the top list. Then, compile the list for the total minimum amount that you need to pay for that month. Step 3: Pay extra cash toward the debt at the top list In order for the debt avalanche approach to work, the money you prepare to pay your monthly debt should have a bigger amount than the total minimum month due for all your debts. Pay only the minimum due for all your debt except for the top listed debt which has the highest interest rate. Allocate the extra cash (the money you allocate for your debt minus the minimum monthly due on each debt) to this highest interest rate's debt, the top one on your list. Step 4: Repeat every month By paying the minimum due each month, you are meeting the payment requirement of every creditor. And at the same time, you hone in on only your debt with the highest interest rate. Repeat step 1 to step 3 every month, you need to re-order your list if your debt interest rate has changed. Remove from the list if the debt had been paid off (it might not be the debt on the top list if other amount is smaller). If you record your payment each month, you will notice a significant amount save in term of interest and the time frame to pay off your debt is shorter. You can do a simulation in spreadsheet software if you want to know how effective the debt avalanche approach helps in paying off your debt faster and save in total interest. Summary Debt avalanche approach is mathematically the best method for paying off your debts. It helps to get rid your debt faster with less total interest.

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