Papa John's and many other U.S. franchises are seeing growth as people take their job security into their own hands. Image from Wikimedia.

The number of consumers using installment loans to fund their own franchise is steadily increasing.  In a market where people are no longer sure of their jobs, many people are venturing into business ownership to build their own futures.  For example, Jon McIntoch of Philadelphia found himself laid off for the fifth time in his 30-year career as a banker.  Rather than leave his future in the hands of others again, he tapped into his 401(k) and opened his own business that provides home health care to those in need.   McIntosh is now one of America’s 1 million, and growing, franchise owners.

Franchises have grown tremendously in the past decade, and have developed new respectability within the job market.  Franchised businesses make up 11 percent of the US private-sector economy and receive 41 percent of retail spending.  Part of their popularity can be attributed to their simple premise. People can be their own bosses, get the training and support they need,  receive financing, and have help with marketing all along the way.  In January of 2009 a Franchise Expo was held in Miami and proved that the franchise business is here to stay.

The growth of the franchise

Steve Olson, publisher of Franchise Update Media Group, stated, that “in recessions, the number of franchises has actually grown faster than it has in good times.”  Between 2001 and 2005, franchises expanded 18 percent in the U.S. and rose to 900,000.

The business sector has also experienced a change in public perception.  In the past, many people equated the word “franchise” with a tacky and unprofessional business.  Those ideas are quickly changing.  Wayne State professor Timothy Bates stated, “There is absolutely no difference in the success rate or longevity of independent entrepreneurs versus franchises.”

New franchise owners

It’s no wonder the economy has given birth to a new generation of franchise owners. Many people have been burned by the recession with lay-offs, pay decreases and losses of home value.  Bates added, “People who have suffered in the economy, which is just about everyone, want to find ways of making themselves immune to future disasters.  They want to take their jobs into their own hands, and franchises can be a safe way to venture into being an entrepreneur, but having a firm plan with full support.”

Consumers are looking to venture into franchises more and more. And with the standard franchise fee being anywhere from $5,000 to $50,000, it’s a reasonable aspiration for many.  Consumers are using installment loans, family loans or traditional bank loans to handle the cost. The return is priceless because it empowers them to know that they have a say in their future.

Businesses of the future

Many experts insist that businesses of the future will be more self-owned.  Trade journalist Olson insists that the “new number of franchises will explode in this recession, provided would-be Subway and U-Haul lot owners can get financing.”

Financing seems to be the biggest deterrent to consumers.  Many are determined to make it work, however.  As Clifford Brant, new Papa John’s Pizza owner, stated, “I will do whatever it takes. I am not going back to being an employee who can lose his job at a moment’s notice again.”

Even if financing options aren’t easily had, consumers will use installment loans  and family help to make their dream of stable employment happen.

Apply for installment loans HERE

Saving money is not as easy as it looks. Image from flikr.com

The government has always pushed for people to put money into personal savings. Now President Barack Obama has created ways that will actually make saving easier for workers.

Just like Personal Money store makes online payday loans easier, Obama has come up with these three ways for individuals to save money: auto-enrollment in retirement plans, issuing tax returns as savings bonds and putting unused sick or vacation days into 401k plans.

1. Auto-enrollment in retirement plans

This will not make retirement plans mandatory for employees, it will simply make it easier for employers to enroll their employees in the retirement plans. CNN Money explains:

To make it easier for smaller and medium-sized employers to automatically enroll workers into retirement plans, the administration will clear up some bureaucratic paper-work hurdles for employers to offer that option.

2. Tax returns as savings bonds

This one is pretty simple. Recently the government made it possible for tax payers to get their refunds deposited directly into their bank accounts rather than sending a paper check. Similarly, now tax payers will have the option of having their tax return issued in the form of government savings bonds.

Automatically converting your tax returns into government savings bonds means that your money will be automatically saved and it will earn a higher interest rate than it would at a normal bank. The longer you leave your money alone, the more you will make off of it.

3. Saving sick and vacation days

Many people do not use up their sick days or vacation days at work. For the vast majority, that means that they are wasted. The government now will make it easier for employers to convert their employees’ unused sick or vacation days into dollars invested in their 401k plans. Again, this isn’t a mandatory thing at all. Employers and employees have the option of whether they want to do it or not, it simply will be easier.

Why the extreme measures?

Before you start spouting off about big government and personal freedom, remember that all of these things are completely optional. No one — not employers or employees — is require to participate. However, the benefits of personal savings in relation to the economy are obvious to everyone, so as part of the effort to turn the recession around, the White House has come up with these ways to encourage and facilitate personal savings. Just in case you’re in doubt about whether this help is necessary, here are some statistics from CNN Money:

Even among those with savings in the bank, the nest egg is relatively lean. Of workers 55 years or older, about half have less than $50,000 in savings, excluding their homes and pensions, according to the Employee Benefit Research Institute.

Some of these measures will be very lucrative for people. Unfortunately, these only help people who have jobs and qualify for tax returns. Saving money and investing wisely is very important, and I for one am glad to see that the government isn’t just talking about the fact that people should save money, but is actually taking steps to make it easier. I hope we will see more measures like this in the future, and that we can find a way to help people who don’t have 401ks and tax returns.

If you want to see your name on a cake like this someday, don't cash out your 401k.

If you have a 401k, you may think that cashing it out to pay off your debt is a logical idea. It’s your money, right? And why let it sit there and collect dust while you are struggling?

I’ll tell you why: So you can retire someday. And debt consolidation will not be an option when you have no income.

Paying the price

People often think they will save money by cashing out their 401k. They figure if they pay off their debt right away, they’ll save on interest. However, cashing out a 401k is a very costly venture.

401k funds are heavily taxed. Plus, there are hefty financial penalties in the form of fines if you cash it out early. Furthermore, you are earning interest and possibly matching payments from your employer on that fund. Any extra money you would have earned while trying to build it back up will be lost.

Can’t fight the future

Think of it this way: Say you cash out your 401k right now and pay off your debt. You’re even-steven, but you have to start all over to build up your 401k again. Chances are, when the time comes around that you planned to retire, you’ll find that you do not have enough money in the fund. You’ll either have to keep working or live in poverty.

How a debt counselor will help

When you sit down with a debt counselor, you will come up with a financial plan. Not only could you save money on interest, you will know how soon your debt will be paid off. If you leave your 401k intact, you can leave your future retirement plans undisturbed and pay off your debt at the same time.

Pound out your frustrations over dough

The Jim Cramer/Jon Stewart ride ends here now for us. Wall Street punditry has done the average American investor wrong. Keep your eyes open and do your due diligence before taking anyone’s investing advice. Even if you take investing advice – or advice on where to find payday loans – from your dog. But if your investment adviser can’t pass a Turing test, you should be put away…

If you missed parts ONE, TWO, THREE or FOUR, check them out.

Cramer: Your ultimate goal should be to expose these shenanigans.”

Stewart: “(How can we trust) shows like “Fast Money” anymore?”

Cramer: “Jon, you and I, we’re entertainers. There’s a market for it.”

Stewart: “Yes, but there’s a market for cocaine and hookers. So what? What is the responsibility of people who cover Wall Street? Who are you responsible to? 401k and pension holders, the general public or Wall Street traders who are working hard but getting fu*&ed in this too?”

Cramer (dodging the real question): “Should we have constantly been pointing out the mistakes? Absolutely. I’m a commentator. I’m a guy trying to do an entertainment show about business. It’s tough; what am I going to do?

Stewart: “I’m under the assumption that you don’t just take (Wall Street CEOs) words at face value, that you check things out. Jim, this is unfortunate, because you’re not “the face” of this. I don’t mean to direct this solely at you. There are larger powers at work. We are both snake oil salesmen…”

Cramer: “I do not disagree with that.”

(Gulp!)

We must force these “higher powers” to be accountable for their actions. Playing with other people’s money is no game; it is a marathon that few can truly afford to lose. While the Jon Stewart/Jim Cramer interview is now several days old, the memory in the collective consciousness of the entertainment media still burns. Time magazine TV critic James Poniewozik blogs for “Tuned In” that we should remember that while the battle was between two men, they’re simply footsoldiers in a larger war.

As Poniewozik puts it, “There’s a big temptation to frame last night’s head-to-head between Jon Stewart and Jim Cramer as a battle between two guys. But as Stewart told Cramer, to his credit, ‘This song isn’t about you.’” It certainly wasn’t a banner moment in Cramer’s career. However, the focus of this exchange was an outing. How America does (in the same way that Debbie does…) journalism is at issue. Business journalism most specifically. To finish off, do THIS…

Related Video:

Jim Cramer bobblehead from the TV show Mad Money (photo by flickr)

Jim Cramer admits he and CNBC could do a better job of reporting investing news in a manner that is honest and balanced. But the beat goes on. People have lost most of their 401(k)s and are looking to cash advance loans in a jam. Check out parts ONE, TWO and THREE to follow the whole story.

Cramer (on Daily Show): “Don’t you want experienced guys like me to expose that?”

Stewart: “No, no… I want that desperately, but that’s not what we’re getting. You knew what the banks were doing – and now to pretend that this was some crazy, once-in-a-lifetime tsunami you couldn’t see coming is disingenuous at best and criminal at worst.”

Cramer: “I’ve known the CEO of Lehman Brothers, Dick Fuld, for 20 years. He brings me in, (I ask him how Lehman is doing) and he lies to me, lies to me, lies to me… I have called for indictments… we’ve not seen any… where are they?”

Stewart: “It’s very easy to get on this after the fact… Whose side (is CNBC) on? Wall Street traders were on a ‘Sherman’s March’ through their companies, financed by our 401(k)s, and all the incentives of their companies was for short-term profit. They burned the fu*&ing house down with our money, then they walked away rich as he&^! And you guys knew that was going on.”

Cramer: “We have reporters that try really hard. The market had been going up for a while, we thought it could continue despite the shenanigans. I didn’t think  Bear Stearns would evaporate overnight. I knew the people who ran it, I always thought they were honest. Did I get taken in? Maybe, to some degree.”

Stewart: “Selling the idea that you can sit back and get 10-20 percent return, selling this idea that you don’t have to do anything. Don’t you always know that that’s going to be a lie? How is saying ‘I’m going to teach you to be rich!’ different than an infomercial?”

It isn’t. We’ve been had. CLICK HERE for part five, where Cramer admits that – like Stewart – he’s a “snake oil salesman.”

Related Video:

Many people have had to delay plans to fulfill their retirement dreams.

People who were once retired may be eligible for payday loans once again as more of them go back to work. After seeing their stock market investments and 401ks take big hits last year, some have no choice other than to start bringing in a paycheck again.

Big numbers

In the state of Washington alone, 71 percent of residents who were polled said they were worried about their retirement accounts, according to The Spokesman-Review newspaper. An AARP survey in the same state said 18 percent of retired residents were considering going back to work.

The good news is that people with steady paychecks are more likely to have the option of borrowing payday loans if they need extra cash.

Staying employed longer

Washington residents still in the work force are considering putting retirement off, and 60 percent of the people polled said they will do that if things don’t get better.

Trouble with 401ks

Last year many people stopped putting money into their 401ks. In fact, 25 percent of the workers surveyed in Washington said they had done that, and 14 percent actually paid penalties to pull money out of their retirement accounts.

AARP Advocacy Director Ingrid McDonald says it’s even more important than ever to put money into your retirement savings account. That may work for people who have money to save, but for some people it is too late.

Individual accounts

John Heffman, a 79-year-old Washington resident, is searching for a job right now through the WorkSearch program at AARP. He explains that he lost between $50,000 and $60,000.

Another Washington resident, Mara Greene, had planned to retire at 62. She is 62 now, but instead of retiring from her business running a retail store, she is looking for a job. Her plan was to sell her business and retire on the money she made from the sale, but she hasn’t been able to sell the place. She has been trying to sell it for two years, but  with the store shut down and no buyers, she’s seeking a job.

If Heffman and Greene do find jobs, they will have more financial options, like  getting payday loans, in case the economy continues to get worse.

Does debt have you bound up and feeling like a police officer bound up, not able to reach the donuts? Try consolidating your debt with a home equity loan. (image from flickr)

When struggling with personal debt, you may be tempted to apply for a personal loan, payday loans or try to borrow money from other sources from time to time simply to relieve the financial pressure you may feel weighing in upon you.

In this article we will attempt to address some of the advantages and disadvantages of the various debt payment options that may be available to you to pay down, pay off  and take control of the debts you owe.

Payday Loans

Payday loans, although a valuable service for emergency funds, are not the best option for paying off or consolidating debt. Payday loans are more a source of emergency funds for dire situations, such as when your car breaks down and you need money for quick repairs or if you want to avoid a late payment penalty with a creditor.

Because payday loans usually limit you to a maximum of $1,500, it is likely that a payday loan would not be sufficient to cover and or consolidate your debts anyway. There are better options available to you that can provide you with a lower interest rate.

Withdrawals On Your 401(k)

A lot of people resort to using funds that they have put aside in their 401k savings plan. This is a tempting but ill-advised approach to debt relief.

Remember, the funds that are in your 401k are reserved for your retirement years. Using these funds to bail yourself out of financial trouble today may cause another crisis for you several years from now. You may find at retirement you don’t have sufficient funds in the account to last through your retirement years.

Taking money out of your 401k will cost you more than you think. You have to take into account how much you will be taxed for on the withdrawal of these funds plus the total amount of interest these funds would have acquired between now and the age you retire. This adds up to be a significant sum.

Home Equity Loans

Home equity loans are usually the best option for consolidating and paying off your debts. Home equity loans are obtained by borrowing against the equitable portion of your home’s value. This gives you the advantage of lower interest rates than most other options. Plus, interest paid on home equity loans is tax deductible.

When borrowing against your home equity, be sure to remember defaulting on or failure to pay your home equity loan payments can result in losing your home.

Avoid Repeating The Cycle

The biggest thing to remember when paying off your consumer credit debt, regardless of the options you choose, is to avoid repeating the cycle again by running up your credit card balances that have been paid off.

If you find that your money spending habits are habitually putting you under financial stress, you may find it helpful to work with a debt counseling service that can help you manage your finances in the future. Click to learn more about debt consolidation.

Debt, what was once frowned upon as an irresponsible act or circumstance of the less fortunate in society, is now embraced by the masses. Between consumer credit cards, bank loans, and payday loans, the average American now possesses an average of $9,200 in credit card debt with an average interest rate somewhere between 15 and 19 percent.

Debt is a lot more difficult to understand since we have gone from a predominantly cash-only society to an increasingly cashless society.

Since our evolution away from cash towards credit, we have developed habits that have put our society as a whole at risk.

Too much use of the plastic!

Financial Decisions Today Will Affect Our Family And Country Tomorrow

America’s credit addiction has left millions of families living with nothing left in reserve going from one paycheck to the next just trying to make there minimum payments. Many families use third party services such as payday loans to help make ends meet.

The growing fear of many experts  is the future of today’s debt-saturated generation. The wide availability of credit and irresponsible borrowing has left consumers putting more money into interest rates on financed merchandise than their 401k’s.

With promotions shouting the availability of finance options like “No money down”, “No payments” and “No interest for up to 36 months,” consumers have a hard time passing up things they want but can’t afford.

Knowing The Difference

Debt used to be more clear-cut than it is today, which requires us to know and understand the difference between good and bad debt so we can make smarter decisions for our financial futures.

The following will help you determine the difference.

Good Debt

Good debt is usually defined by the simple fact that it’s going to provide some kind of return. By return I don’t mean better entertainment value such as that which is returned tenfold from the purchase of a brand new large screen plasma display or LCD television. I also don’t mean cosmetic value such as that returned by putting a fancy new pair of rims on your vehicle. By return we are solely talking about the financial return that is returned to you as a result of your financed transaction.

Types of good debt would include things such as borrowing money for a home or for a college education. These things make good financial sense. A home, although much goes to interest over the life of the loan, provides an equitable return with age and usually becomes the single greatest asset that a person owns.

College, on the other hand, can create years of student loan payments, but the increase in wages due to the college degree more than endorse this as good debt because of the profitable gain that will compensates for the original investment.

Bad Debt

Bad debt is just the opposite. You can usually identify bad debt by the lack of equitable return, such as a rent payment. Financial gain is never reaped as a result of renting a home or apartment. Consumer credit card debt is also a bad form of debt if it is not paid off in full each month, because credit payments continue to take from you without any comparable return.

The Gray Matter When It Comes To Debt

Sometimes it is hard to determine whether a financed transaction will be good debt or bad debt. A couple of examples of these gray areas would be car loans or payday loans.

Car Loans

Car loans and the like would typically be considered bad debt because they are in a constant state of depreciation. However, vehicles are an asset that most can’t afford to live without and may be required simply to get to work and get paid, therefore cars are a worthwhile investment. But purchasing one should be carefully considered.

When buying a car, it is strongly advised that you don’t buy one new off the lot as a newer vehicle depreciates much quicker than one that is a few years old. Plus an older vehicle’s taxes and payments are considerably cheaper, thus saving you more each month.

Payday Loans

Payday loans are another area which would fall into the “gray area” when considering good vs. bad debt depending on what they are used for.

Applying for a payday loan just to get some extra cash for a weekend in Las Vegas is a prime example of bad debt, but if you were to use a payday loan to avoid the fees on a late mortgage payment, a payday loan could save you money, which would make it a perfect example of good debt.

Make The Right Choice For Your Future

Remember the key is simply to determine the equity of the transaction. Will it save you money or not? Before you charge or finance your next transaction, try to determine whether your purchase would be considered good debt or bad debt.

Good debt will leave you in a better financial position for a safer, more stable and more profitable future.

Are your debts weighing you down?

I wouldn’t assume that you are burdened with debt, but America’s population consumes more than any other country on earth when it comes to water, oil, and of course retail merchandise. Do you have a bill or two that seems to be holding your head under water once in a while? If so, this article may help you breath more freely and comfortably, and that extra bill may be best handled by payday loans.

Managing debt can be a long, slow, and tedious process, especially if you have to juggle multiple debts at the same time. By using debt consolidation tactics, you can put all your debt under one umbrella and save a little on those pesky interest payments in the long run.

When is it time to seek debt consolidation help?

Seeking help when it comes to personal debts can be a little humbling for some and many feel too embarrassed to seek out the appropriate help in times like these. Unfortunately, its this pride that will cause further peril the longer you wait, which is why payday loans are so convenient.

A good time to seek debt help is when you experience the following;

• You can only afford the minimum payments on your credit cards each month.
• You begin to accrue debt to catch up with previous debts. An example of this would be using your credit card.
• You write checks from one account to make a payment on another for lack of necessary finances.
• You are near or have maxed out your existing credit limits.
• You may have picked up extra hours at work or took on an extra part time job just to make ends meet.
• You find yourself using credit just to buy groceries or fill your tank.
• You have just lost your job and don’t know how you are going to make due on your payments.

If any of the above criteria seems to match your current circumstances you will want to begin thinking about what you can do to manage your debt before it gets out of control. Here are a few options,

Credit Card Transfers

This option may be available to you if you have upstanding credit. The credit card industry is a very competitive business and will usually provide balance transfer options to new subscribers that will provide you with a 0% interest rate for the life of the transferred balance just to have you as a customer. If you’re lucky the approved balance will allow you to consolidate more than one if not several of your other accounts. By only having to pay the minimum balance on that which was transferred, without further finance charges, you can focus on paying off other existing debts.

Home Equity Loans

This is perhaps the most popular form of debt consolidation. If you currently own a home with some equity, you can refinance the mortgage to pay off your debts and if you’re lucky you may even get a lower interest rate while you’re at it. What makes this option the most attractive is that it spreads your payments out over thirty years. This gives you some immediate relief and ties all your debt into one payment with your mortgage.

Retirement Funds

If you currently possess a 401k or retirement account, you may be able to borrow a loan against it. This should be a last resort for consolidating your debt as your 401k is meant to secure your long term financial future.

The nice thing about these types of loans is that you are paying interest to yourself, not the bank. Be aware however that if you quit your place of employment that is providing you with the 401k, your employer will expect full payment of the debt before you leave. If you choose this option you may be tying yourself down for awhile so be sure that this is something that you are willing to do.

Personal Loans From Family or Friends

This option I would consider carefully before proceeding with as well. Family and money don’t always mix very well, and it can potentially ruin your relationship. However, if you feel you are close enough with a rich relative or family member you may be able to get an interest free loan. If that doesn’t work and if they trust you enough you may be able to provide them with a money making opportunity by paying them an interest rate (cheaper than your current best options of course) for the use of their money.  Or, if you don’t feel comfortable borrowing from family or friends, there’s always payday loans.

These are just four ways to manage money that you can use to help consolidate debt. Stay tuned to the blog tomorrow and we will cover a few more in “Managing Your Debts Through Debt Consolidation“

It’s inevitable. We are all going to have to retire someday, hopefully by choice and not by illness and prayerfully we will have the necessary funds to do so – after all, you can’t rely on Social Security and payday loans alone for your retirement.

You may have heard that the age in which people are retiring is rising. Now this could be because work is so much more fun than it used to be, or perhaps advances in medical technology is allowing us to spend a couple extra years behind our work desks, maybe we have to work the extra years just to assure ourselves that our retirement will last until we retire from existence.

Is your money not worth what it you used to be? Thank inflation, the silent thief.

The answer is leaning towards the latter. We can stretch out our working careers through a healthy lifestyle and improve our wages at retirement through smart investing but one thing many of us don’t pay enough attention to is the rate of inflation.

What is inflation?

“Inflation is a rise in the general level of prices of goods and services in an economy over a period of time.”

The basic idea of inflation is this, you remember when a candy bar cost you 10 cents, well now that same candy bar will cost you close to a dollar if not more in some places. There was a time that many remember when a single income could provide for a whole household. Today it takes two incomes to provide for a household yet the assets maintained are not any more than they were six decades ago. Inflation rises at about two to three percent a year making a subtle impact on your finances that goes unnoticed by most people until they wake up one day and say “  I remember when a gallon of milk cost under $1″, and when hardly anyone had to get payday loans.

Unfortunately, Americas wages are not keeping up with the rate of inflation which means that each year your buying power is decreasing. If you make a $60k salary and inflation continues at the current rate of inflation which is 3%, you will need to be making $80K ten years from now just to maintain the same buying power that you have currently. The chart below was found on bankrate.com’s website and will give you a good idea of what your future earnings should be over the next few decades to keep pace with inflation.

What will you need to be making?

If you would like to play around with these figures a little more you can use the retirement calculator found at Bankrate.com.

It is astonishing to think that a $50K dollar salary will need to be at least $121K in thirty years. Not only do we need to save for retirement, we also need to make sure that our funds last through our retirement years.

Planning conservatively for our financial future is more important today than ever before. For those of us born after the baby boomers, we also have the added pressure that we may never receive our rightful dues from the Social Security System. Our future financial security depends largely upon our ability to invest successfully today, and not solely on payday loans for our financial security – we can’t anyway.

If you haven’t yet started an investment portfolio, the sooner you do so, the better off you will be. With the slumping economy it may seem to be a scary time to invest but then again, where there is crisis there is always opportunity. Now may be the perfect time to make up lost ground.

With this in mind, I thought it would be prudent to present you, our readers with a small list of do’s and don’ts that are relative to managing your finances for future growth and stability.

Here we go,

Minimum Payments

What are you doing to secure your financial future?

When it comes to consumer debt, paying just the minimum payments on your credit cards is foolish and can take you years to pay them off. Always pay more then the minimum payment amount and focus on the cards with the highest interest rates first, and payday loans can help keep you from late fees if you come up short.

You can expect your minimum payments to increase here shortly if they have not done so yet. With the current economic crisis and credit crunch, banks and lenders are increasing there fees as well as the minimum required payments to recoup revenue in case conditions worsen in the near future.

Paying Late

Procrastination is a killer. With the busy lives of most people today, it is easy to loose track of due dates. This is an inexcusable expense as late fees and penalties for late payments are easily avoidable. You must remember that apart from the late charge which is on average $32 dollars today, more than the fee on most payday loans, you also will likely get your interest rate raised until you can show yourself responsible. This may take many months, so the total cost to you personally can be enormous over time.

Live Within Your Means

Yes we have all heard this before but are we actually applying it in our day to day affairs? If you find yourself putting more on the credit card each month without the means to pay it off come the months end, you are on a slippery slope that once gone down can be very difficult to climb back up. Don’t spend more than you have coming in. If the card is getting you into trouble, get rid of it. You must learn to be accountable to yourself for each purchase that you make, it may save you from taking out payday loans.

If you have to have something now that you cannot pay back at months end, be sure to devise a plan of action to pay that debt off within the next 60 to 90 days and hold yourself to that accountable to that plan.

Borrowing Against Your Future

I know it’s tempting but what goes into your 401k needs to stay in your 401k. With life’s ambitions come the temptation and desire to dip into your retirement savings. This could be for a new business opportunity or a home remodel etc. Keep in mind that most business don’t make it more than three years and robbing your 401k is robbing yourself no matter what the your excuse is. You must have a place that where you are regularly contributing to your financial future barring any excuse or justification that you may come up with. Your 401k retirement account it usually this place.

Thinking About Co-Signing, Think Again.

You cannot trust anybody more than you can trust yourself. Whenever you co-sign for someone whether it be family or friends you are opening your credit up to problems. Any mistakes the person makes that you are co-signing makes, you will be held accountable to. These problems will also be documented on your credit report and will take a minimum of thirty six months to fall off after the account is back in good standing.

I hope this kick starts you into being more proactive in preparing for your financial future.

To your financial health,

Personal Money Store

Debt, we almost all have it. American is buried in it with the average citizen, man, woman and child owing over eight thousand dollars of consumer credit debt alone. To add to that we have mortgage, student and auto loans to take into account. We have become a nation obsessed with credit, burdened by debt, and in the middle of current and pending national crisis, and the middle class is running for payday loans.

How can we cope is a question that many Americans are diligently seeking the answers to. We are a want it now society which has not learned to prioritize are money or our spending habits to insure our future economic health. To make matters worse we are about to enter a new crisis that many are not aware of, which is the Retiring of 78 million baby boomers.

Baby Boomers will be the last recipients of Social Security benefits. What will you do?

Consumer and government spending is catching up with us!

If you have not started to think about your financial future, now would be a good time. The chances of you receiving any Social Security when you retire is highly unlikely if you are not currently receiving it already or are at the tail end of that generation which was born between 1946 & 1964.

By 2030 government spending will have to decrease by 60% or the average Americans taxes will need to double to compensate for funds which we the government has been borrowing from the Social Security fund. This looks grim as i tend to think the later would occur before the former. How will you fair if your taxes double?  It will take more than payday loans to solve this problem!

Speculation by some think that Americas middle class which are those of us which make under a hundred thousand a year, will be wiped out. Small business’s would be forced to close their doors or be consumed by the larger and more established corporations.

They are no sure fire solutions at the moment, just a pending national crisis that I believe has been pushed off for the current generation to deal with and live through.

With the current credit crunch, recession and growing unemployment, many don’t have the means to adequately prepare for there futures without the help of the Social Security. Could this recession be leading us into a depression?  We aren’t prepared to deal with a disaster on that kind of scale – no one ever is – and if it happens, no amount of payday loans will get us out of the mess that was created for us to deal with.

What Can You Do Now to Start Taking Control of Your Financial Future

1. Refrain from accumulating any additional debt. If you are currently over extended consider moving to a smaller or cheaper home. Refinancing may also be a good option if interest rates provide you the opportunity to do so. If so, try to refinance any of your higher interest rate debt into the loan.

2. If you have a car payment you may want to consider trading it in for a cheaper model or even better yet for something you can own out right. Also consider that insurance is cheaper on older vehicles and if a car is a sedan (4 door) it will be less expensive than a coupe (2 door). You can quickly reduce your debt load by $300 to $500 dollars per month by compromising for an older reliable vehicle versus a newer one. These savings alone can make a significant difference in your paying off other debts and or investing in your financial future.

3. Devise a plan to eliminate your current debt load. There are many things you can do to save money and make headway on your debt. The article entitled “Saving Money From One Payday To The Next” will show you a few of the many ways you can start saving money today.

4. Credit counseling or loan consolidation may also help you tackle your debts quicker. If you find you are in way over your head, some of these credit counseling companies will negotiate your debt with your creditors so that you will only have to pay back a percentage of you currently owe. This will come at a cost to your credit so you will have to decide if the benefits are worth it after taking your current circumstances into account.

5. If the company you work for currently has a 401K option, you may be able to get a certain dollar amount matched each year by your employer. This is free money! Take advantage of this opportunity and be sure to get the highest dollar amount as matched by your employer deposited into your 401k each year

These are just a few tips but they should get you thinking and heading in the right direction. Take control of your financial future today or you will be wishing that you had when things really take a turn for the worse, and the worst of payday loans would have seemed wonderful in comparison.

Yesterday we saw yet another reminder of just how bad our economy is doing. We have seen the largest drops that we have seen in a long time with yesterday’s 514 point drop being the 5th largest drop ever.

Still another Nasdaq Drop. When will it end?

The Nasdaq dropped a significant portion as well, leaving investors and Americans all over the country worried about their 401k’s and stock options.

I have never been a big investor in stocks and so forth mainly because of my personal entrepreneurial endeavors. However, I have managed to invest about $4900 into an IRA with Edward Jones investment company. I put this investment into a combination of low risk mutual funds which i was told would yield a lower percentage than the common stock in times of economic wellness but it would also yield a small percentage of profit in times of economic distress.

I’m losing money even on my low risk portfolio!  I’m going to need payday loans before too long!

Now, granted $4900 is a small amount, but that was 13 months ago. Today it’s only $2800 which is a significant loss for a supposedly super low risk portfolio.

That being said, it really puts things into perspective as to the gross amounts of money investments and investors have lost. Looking back, I can with certainty say that I’m glad I invested more in myself vs my portfolio, for I at least purchased an adventure and gained some valuable experience with my money.

Most of us do not have a lot of options to pursue at this point except to hope that the economy stabilizes itself and begins the trend upward again. Until then you will continue to see Americans taking advantage of such services as payday loans and cash advances to stay on top of their individual financial crisis.

Scary times for all! Good Luck America.