How to Create a Budget for Your Family

Creating a budget for your family can lead to great savings! This will help you to lower your spending and keep track of your spending.

It does not mean you have to give up on all your favorite things. It is mostly a matter of deciding where your priorities are. You have some basic needs and then there are all those extra things that you want. It does take some discipline to spend your hard earned money wisely.

Here are 5 steps to create a family budget:

• Set Spending Goals
• Compare Your Spending with Your Income
• Cut Expenses to Balance Your Budget
• Recalculate Your Totals
• Commit to Following Your Budget

The commitment may be the hardest part. But you will not get anywhere if all you have is a few good ideas. You need to execute them and keep yourself on track!

Read more at Suite101:  http://www.suite101.com/content/how-to-create-a-budget-for-your-family-a297630#ixzz13rXo0v8b

Debt Causes People To Defer Retirement

There is an interesting but also disturbing article in USA Today about the effect the debt crisis is having on people reaching retirement age.

As people have seen their income drop and their debt has increased they are in a difficult financial situation just when they are looking forward to an easier life, approaching their 'golden years'.

A growing number of Americans age 55 and older have put their retirement dreams on hold as they face a dismal financial reality: The recession has forced many into unemployment, stripped away years of their savings or dramatically reduced incomes during what they had hoped would be their final high-earning years.

One of the main causes of older Americans filing for bankruptcy is credit card debt!

Losing your job in a recession at a later age and increasing medical bills all add to the problems.

One major error to avoid:

Don't use your retirement saving to pay down debt. It is usually beyond reach of creditors!

Source: USA Today

How To Stop Student Loan Garnishment?

When you have stopped making payments on your student loan you are said to be defaulting on the loan.

The US Dept. of Education can then start a student loan garnishment. Your employer will have to take up to 15 percent of your wages.

You will receive notice of this about 30 days in advance. Then you can request a hearing and try to negotiate a better payment schedule.

Filing for Chapter 13 bankruptcy is another option but this also has other implications.

It is best to seek legal assistance from a lawyer before going down that route.

Why You Should Repay On Time

When you take up credit you are also taking on the obligation to repay.

It is also important to repay on time. Every time!

Being late with your repayments can make creditors nervous. It is a bad sign and they know by experience that you may not be able to follow through on your promise to be a well behaved lender.

The longer it takes or the longer you get behind, the bigger the chance you will default on your loan.

Being thirty days late is already stretching it. After 90 days you can get in real trouble.

Remember these details will also show up in your credit report.

Wage garnishment is a frightening experience.

All of a suddenly you are feeling a severe cut in your paycheck and you have all these planned expenses. Plus you realize this could go on for quite a long time.

If you thought no one can take money out of your paycheck without your permission then you are wrong. When your employer receives a notice of garnishment from the court then he has no choice but to comply.

Fortunately it cannot come as a complete surprise. You have to be given advance notice.

This gives you a chance to work out a payment schedule.

Spending Money We Don't Have

Tim Jackson gave a talk recently at a TED conference.

This is an interesting quote:

People are being persuaded to spend money we don't have on things we don't need to create impressions that won't last on people we don't care about.

This should let us think about our own spending habits and how this can get us indebted beyond our control.

You can watch the video at