Learn how you can organize your bills so that they seem less of chore and more of an achievement.

You see them every day, and you hate to open them. What more exciting news could they possibly bring than reminding you of your obligation? Don’t they realize there is a recession going on? Do they think you have extra cash lying around? Rather than looking at them like the 800-pound ogre that won’t go away, begin organizing bills by priority and take a conquering approach to them.

According to psychologist Maslow’s hierarchy of needs, the first thing you have to satisfy are physiological needs such as food, shelter and breathing. This is generally a good guideline to follow, but you don’t have to exactly stick to it to the T as you’re organizing which bills to pay first. You may want to consider this recommendation.

Keep a Roof Over Your Head

As you’re leafing through those dreaded envelopes, organizing the bills in order of least ulcer-inducing, remember first that you’ve got avoid sleeping under a bridge. Mortgages may be the biggest pain because they are the largest payment, but if you consistently miss paying that bill, then be prepared to pitch your tent underneath the nearest overpass. Okay, perhaps that’s a bit harsh. At least consider that you have to first take care of your physical needs.

Got to Get Around

The second priority in organizing your bills is making your car payment. Unless you live in a city and have daily access to fast public transport, you need be able to get to and from work or to that next job fair. In the United States, Canada and other spread out societies, you can’t really go too far without wheels. We are highly dependent on cars to perform day-to-day functions.

Health Insurance

Despite this being under large debate in the government, health care is not something to gamble with. Swine flu, cancer treatments, disability-related injuries, obesity and stress-related symptoms have all affected physical and mental health in some form or another, especially in this economy. You need to be able to see the doctor whenever necessary. Don’t leave your health to chance and whimsy.

Who’s On First

Pay the bill that has the earlier date. You might have thought this would be the first criterion in paying bills, but you have to consider your personal needs as you’re organizing. Can you afford a negative balance in your checking account until payday rolls around the next week? Or can you afford to lose your house for a month as you maintain a positive balance in your checking account? Once you meet your physical needs, then you can take on the pesky bill that knocks early at your door.

Highest Percentage Credit Cards

Paying off high interest-rate credit cards is emphasized time and again by financial experts for good reason. Missing these payments on a consistent basis just piles on unnecessary fees. Remember that you are paying a penalty for being late. If you show up late to a meeting, you get a stern look. If you’re late with a promised card payment, you’re slapped with an added cost you don’t need right now. Some credit cards are a lot harsher about your delinquency than others by how high they charge you.

image by flickr

Payday loans applications are flourishing as medical costs continue to weigh down Americans.  Currently there are millions of people seeking aid from government programs.  These programs can be confusing, however, and many people are being rejected for innocuous reasons such as location, rather than need.   Government aid comes in the form of health care, housing aid, and food stamps. But each one comes with its own set of rules and regulations to be eligible, and truly needy people can get caught in the red-tape.

Beverly Johnson of Kosciusko, Mississippi lost her job at a Bible college. When she went to apply for unemployment, she was told that as an employee of a religious school she was ineligible.  “That was a shock,” she said.  Most Americans believe that unemployment is there if they are let go but there are underlying rules with every government program.

Because there is so much fine-print when it comes to getting government assistance, payday loans are filling the gap.  When people need money, they look to payday loans as a reliable option because other options are so uncertain.  Martin Summerstein of Miami, Florida stated, “We use payday loans because they are available to us. You can’t count on the government, because one day help is there and the next it isn’t.”

Studies show

The New York Times did a study of state enrollment for six federal assistance programs and found a huge amount of disparity between them.  In California, only 50 percent of people who need food stamps get them, whereas in Missouri almost 98 percent of people get them.  In South Dakota, 19 percent of unemployed people get unemployment benefits, while Idaho gives benefits to 67 percent of its out of work citizens.

Political scientist at Harvard Theda Skocpol stated, “The system for helping Americans in need is very fragmented, and it confuses everyone. Some people are covered, and some people are not, even though they look like they’re in very similar circumstances,” says the New York Times.

The critics

The stimulus package has about $100 billion in safety net provisions but each state is able to decide whether or not to take advantage of it.  A few governors believe that to increase unemployment benefits would increase taxes on businesses and cut down on new job creation.  They rejected the assistance.

Some critics believe that this extra fund is detrimental.  They cited that payday loans and easily available federal aid can cause people to mismanage their budgets consistently.  “If people have options, they won’t be forced to rework their budgets and cut back where they need to. They can become dependent on extra money instead of being responsible.”  Stuart Butler of the Heritage Foundation believes that added government aid could also discourage people from seeking more education and better paying jobs.

Much-needed reform

In the end, President Obama has a lot to sort through.  His team has to react to the crisis and find ways of including needy people in government aid programs, without driving the economy deeper into a recession.

Shiela Zedlewski, of the Urban Institute, said “We have people (receiving all benefits) but we have far more people who get nothing. … A significant group remains outside the safety net.”  In the meantime, people are trying their best to use payday loans, family assistance and the government programs they are eligible for to stay afloat.  Hopefully, the president will be able to include help for everyone based on need and not on whether they find their way through red-tape.

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Americans need to start, or aggressively continue with, a financial plan that prioritizes money for savings, credit repair and investments. The recession has managed to deplete savings accounts everywhere. Americans are finding themselves with a lack of emergency funding due to job loss, high interest on credit cards and lowered house values. These combined, do not make for a good financial outlook. Agnes Denning of Flint, Michigan stated, “We did the right thing…we had 6-month’s worth of savings in an unused bank account. But when my husband lost his job and I was cut down to part time, those savings quickly were used up. Now we have to start from square one.”

Many Americans are having to start over after the recession. Though it is hard, it is also necessary. The first step in starting over is to get on a strict budget. Economist Mike Salsman stated, “People need to start from the beginning…the economy’s affects have rendered old ways of managing useless. We’re seeing lots of people who have to recalculate their budgets, their spending and their savings. Budgets people used for years before the recession are now useless and outdated because the numbers are no longer the same.”

Setting up

The first step to setting up a budget is to commit to it. Numbers should be entered every day until all the necessary data is collected. For example, if a consumer is trying to pinpoint the exact amount the family spends, they need to write down each single daily expense the household is spending. People need to understand that diligence is what is going to make budgeting a success.

People need to calculate exactly how much money they are bringing in. This includes paychecks, interest on investments, part-time jobs, freelance work and any other money-generating activity. This is what a household has to work with. Deducting expenses from this total will show exactly how much, if any, discretionary funds are available to put towards savings, credit repair, and investments.

Most experts suggest following expenses for at least a month to get a complete picture of household spending. Even items as innocuous as a bottle of soda pop need to be accounted for. The reality is that very few people buy just one pop or one coffee. It’s normally a habitual buy that occurs throughout the week. Although a $1.49 cup of coffee doesn’t seem like much, two-cups every week day add up to $60 a month.

Categories

Next, budgeters need to divide their expenses up into categories like mortgage, insurance, groceries, entertainment, etc. A good software program will categorize items automatically. It’s important to then divide categories into essentials and nonessentials. The fixed-essential costs are probably stationary and not a lot can be done about them. It’s the nonessential spending that needs to defer to other priorities.

Finally, once nonessential spending has been channeled into more important priorities, consumers should look at their current spending. Are there more ways to cut back? Can coupons be used to save more money? Can the family cut back on outings—say going out to eat once every two weeks, rather than going out to eat every week? If they do go out to eat, can they find restaurants with dinner specials that slash prices? It’s these little changes in daily living that are going to make large differences over time. Cutting back will produce greater resource allocation for savings, credit repair and investment opportunities. Little by little, Americans will get back on track with their finances.

Payday loan companies are one of the last funding companies willing to work with consumers instead of take advantage of them. Contrary to credit card companies, these companies have a very short term relationship with borrowers. There are no long-winded contracts, penalties or fees attached. Payback is simple because it is automatically deducted from qualified borrower’s account on a specified date. For those who are eligible, payday loans are simple, short and quick.

Credit card companies evolve

Thankfully President Obama’s cabinet has stepped into the credit card problems of the recession. “I trust that those in the industry who want to act responsibly will engage with us in a constructive fashion,” he stated. The House and the Senate are working together to introduce bills that protect consumers against unscrupulous tactics of credit companies. “The days of any time, any reason rate hikes and late fee traps have to end,“ he added.

The problem of protecting consumers from credit companies has grown exponentially since entering the 2007 recession. Credit companies are suffering and their lending policies are not bringing in cash as they expected. The American public is at a financial loss and not paying debt. In response, the companies have taken to tactics such as slashing credit limits to lower than what customers have charged, automatically placing them at a higher interest rate.

They also have outrageous jumps in credit rates if a customer is one day late, oftentimes not announcing the “close of day” is not necessarily at the end of the day. “We were good customers,” stated Natalie Breuer of Plainville, Kentucky. “We paid our bill at the ‘end of day’, around 4:30pm only to find out that the credit card company closed their day at noon. That sent us into a tailspin because we were now technically late payers and our interest rate shot up to 23% as a result. We can’t afford that.” Breuer is not alone in her complaint. This is a tactic that the Obama administration would like to abolish.

How to find money

With credit companies making rules one-sided in their favor, many consumers are looking to payday loans as a way to fend off high interest rates and late fees. Maggie Burkot, a credit card user, stated that she “used credit cards in an emergency. Now, paying my credit cards off in time is the emergency that I need extra money for.”

With banks and credit lenders closing their doors, it’s difficult for Americans to maneuver their ways through financial strains. Many are copying large corporations and making large cut-backs in their spending. Discount stores’ attendances are up like never before and large retail outlets that once were favorites are suffering. People want more for their dollars and will travel farther and out of their comfort zone to get it.

In the end

Credit cards were a good way to pay bills in the past and served their purpose. With the recession however, they are no longer able to offer credit like they used to. Payday loans are proving to be more beneficial to the qualified applicant by keeping the relationship short and simple. Hopefully, credit card companies can see the business model of payday loan companies and learn to work with their clients, instead of against them.

With traditional methods of finding money quickly diminishing, payday loans are becoming increasingly popular. The failing economy is forcing lenders to drastically cut their underwriting budgets. This is a sharp turn from last year’s overzealous lenders who were handing out loans left and right. Because of their past imprudence, the market has gone into a frenzy of chaos and the recession has taken over.

Getting money is a difficult task for even those with perfect credit and collateral. The average American however, has neither. Payday loans are becoming a reasonable and reliable way to budget and get through a month of payments. Payday lenders are seeing the growing need for their services and making the application process as streamlined and automatic as possible. If a consumer is over 18 years old, has a job and an active checking account, they can apply for a payday loan. Credit isn’t a factor, so it bypasses the traditional requirements of finding a lender. If approved, funds are deposited directly into the applicant’s account and they receive the amount they qualified for within a few days. Bills are covered, and the lender is repaid with the applicant’s next paycheck. A fee is included with the service, but the result is well worth it.

Commercial and Industrial loans fall 47%

Despite receiving billions of dollars in government bailouts, bank lending fell drastically in February. According to the Treasury Department’s survey of lenders, the biggest banks showed a 47% decline in lending. Conventional loans are quickly becoming things of the past and those who can get them are becoming fewer and fewer. A spokesperson for The Treasury Department stated that “The relatively steady overall lending levels observed likely would have been lower absent the capital provided [by the government.]” In spite of the bailout, consumers have not yet benefited directly. The doors are quickly closing to millions of Americans who are looking to lenders for answers to their money woes. The estimated time for any tangible improvement to be seen by consumers is mid-2010. It most likely will take that long for lower-income Americans to benefit from the government’s bailout.

Payday lenders in the mix

Payday lenders are not seeing the same decline, however. Their businesses are extending cash to customers more than ever because of the unique loan structure. With bills adding up, and traditional lending options unavailable, consumers are finding payday loans to be the most viable, and reliable options for getting through a month of payments. Tight budgets and growing unemployment lines are causing Americans to find non-traditional ways of maneuvering debt.

Is the payday loan the answer?

The question remains whether a payday loan is the answer to your need. Ultimately these types of loans were created to handle emergency bills. The ideal customer is one who has the money, but just not yet. They are one payday away from being able to cover the expense and need some up-front cash to tide them over until that day. Because these are very short-term loans, huge interest rates don’t normally eat away at repayment and payback is automatic. With a struggling economy and traditional lenders becoming stricter with requirements, payday loans are surfacing as a reasonable funding option.

With the growing problem of credit and budgets already tightened until “it hurts,” can a payday loan be a port in a storm? Of course, if you are among the unfortunate who have just been laid off or terminated from your employment, it’s certainly not a viable option. For those employed though, who are fairly secure in their jobs and still receiving a paycheck, pressing debt can be made less stressful if there is the possibility of borrowing money against your next payday. The key here is to utilize this type of service in a very responsible way.

Staying Realistic About Debt

It’s very important to keep in mind that more borrowing is not a wise solution to a financial problem that, more than likely, was caused by borrowing too much in the first place. The economic downturn that we have been experiencing has hit everyone in one way or the other. It’s tough to make some of the bills on time. For someone who has had a bad month with some unexpected expenses, i.e. illness, car repairs and the like, a payday loan could definitely be a handy “quick fix” for getting a bill such as a house payment, or car payment made in a timely fashion. However, it’s important to remember that acquiring payday loans on a regular basis is not a cure-all for problem debt.

Set up a Budget

If these horrendous financial times have not already encouraged you to do so, now is the time to set up a budget. Look for realistic ways to cut down on spending. For example, if you have been eating out twice a week, cut down on this expense. Eat out only once a month, making it a family event that everyone looks forward to. Make a list of things you need when you run errands and try to make less trips back and forth to the same locations. This will cut your gasoline expense. If your family enjoys going to the movies, try renting a movie every couple of weeks and it will seem more like a treat. And put a limit on how much you will spend on groceries each week. Plan your meals and make healthy choices including vegetables, fruits, and more economical proteins such as chicken and cheese. Give each family member a chance for input on preparing their favorite dish.

Tightening the “Financial Belt”

As discouraging as it seems, you are not alone in this crisis. In the final analysis, many thousands of families are struggling to make “ends meet.” If you are still employed and are in a position to apply for a payday loan, you are ahead of some.

Cut expenses to the bone

Think of new and innovative ways to “stretch that dollar” and once you’ve come up with a budget that you can live with, stick with it. Don’t be tempted to take too many of those payday loans. There is no easy money, and there is no free money.

This financial crisis will not last forever, but there are no current hard and fast solutions that have been found to bring about quick change.

It’s true that the cash advances given by the government to the economy seem to be working, but now the government seems to be overdoing it. The latest in the long list of bailouts and blueprints for the next year is the approval of President Obama’s mega budget plan of $3.5 trillion by Congress. The approval came just before Congress went on its regular break.

Though details of the budget are not yet available, it is for sure that President Obama has high hopes with the budget and he is sure that the plans would help stabilize the shaky U.S. economy. Following his footsteps, different states too have announced their own packages and measures.

Size does matter…

These plans, including that of President Obama, are certainly big enough to make a difference. But the problem at this point of time is that we just can’t afford to face a difference that is negative. With every new plan, the deficit levels are widening.

For this reason at least, it’s all the more important that these cash advances produce the desired result to bridge the widening deficits. But if they fail, then very soon these deficits will swallow the whole economy. That is why the margin of error and ineffectiveness has to be very less, perhaps next to zero; otherwise what is being done to save the economy may throw the economy into a deeper mess.

…and so does flexibility

After coming up with a huge package under the bailouts, President Obama is trying to be proactive in dealing with the crisis. One step in the direction has been the approval that he received from Congress. Now, how this whole budget thing actually works depends on various factors including how it is being dealt with by the respective states.

Many have come up with their own plans and the list includes names like the State of Maryland. The state is going ahead with its general fund budget of $13.5 billion. It is definitely a welcome step. But the effectiveness and flexibility are the issues of concern. They have to be well planned with a good estimation of their repercussions. And of course they have to be flexible enough to generate multiple positive outputs.

Wise use of the cash advances is the key

Upbeat with some good signs in the manufacturing sector, President Obama is now planning big on his economic cash advances. But the problem associated with it is that every penny he is advancing to the economy is making a deeper hole in the pockets of taxpayers. Now, after approval of the new budget, analysts have estimated that the taxpayers would have to pay $356 billion more than the earlier estimates of $167 billion.

And as the taxpayers are bearing the burnt, every penny needs to yield the desired result. Not just job creation and restoration of the defunct lending system, the government must also look into matters like increasing public spending in automobiles and housing sectors. As people start spending more, the manufacturing sector will jump on the bandwagon to produce more and meet the demands, which will create even more job opportunities giving a complete boost to the economy. Thus, the need of the hour is well calculated, wise and flexible use of the huge amount of cash advances that are getting infused into the economy to get the desired positive result.

Boehner

Republicans are once again throwing around the s-word — that’s right, socialism.

Of course, the rhetoric is aimed at President Barack Obama’s budget plans. With $410 billion dedicated to spending on government programs and a push for universal health care, it’s to be expected.

Harsh words

It’s been shown already that Democrats have control in congress. The stimulus bill passed without a single Republican vote in the House. So Republicans know that if they want to win a fight, they have to pull out the big guns. And it shows.

John Boehner, Republican leader in the House of Representatives, on Friday called Obama’s new budget proposal and recently passed economic stimulus plan “one big down payment on a new American socialist experiment.”

Loud voices, minimal effect

It’s likely that the Republicans’ ranting won’t amount to much as far as blocking the budget from passing. After all, the gigantic economic stimulus package passed with only three Republican votes.

Every little bit

But there were those three, and it needed those three to pass. From my point of view, it seems the “socialism” battle cry is aimed at making sure that every single Republican is on the same page regarding the budget.

And it appears it might be working. Those three Republicans who voted for the economic stimulus package have already expressed reservations about the budget proposals.

Tug of war

No one on either side of the aisle is denying that the budget plans are expensive. Some Democrats are showing reservations, too.

“While President Obama inherited much of the deficit he’s battling, his budget has eye-popping numbers, and its size and scope concern me. In particular, I’m not sure raising taxes is the best way to go in these times,” Democratic Senator Ben Nelson said.

Predictions

Nelson

As we all know, the budget will go through plenty of changes before it’s passed.

I predict we’ll see a situation similar to what happened with the stimulus package. The president’s version was $825 billion. The Senate version ended up being $838, and the version the House signed off on was $819. The final, signed, sealed, passed version was considerable less than both of those, at $787 billion.

Obama pledges to slash deficit after initial increase.

President Barack Obama unveiled his budget plans for 2009 and 2010 today. Some of the big items for this  year  include $410 billion for federal programs and dedicating $250 billion to bailing out banks. This is in addition to the $700 billion TARP fund.

Big budgets

The fiscal year 2009 ends in September. Obama’s proposal for the remainder of this year adds up to about $3.94 trillion. The proposed budget for 2010 costs $3.55 trillion.

Big ticket item: health care

As expected, the 2010 budget calls for dedicating $634 billion to to health care reform. The administration calls this a “down payment” on the ultimate goal of universal health care.

Pay caps on government salaries

The 2010 budget calls for a freeze on salaries for all White House senior staff. Other civilian employees for the federal government would be limited to receiving a 2 percent pay raise. This year government workers got up to a 3.9 percent salary increase.

Bumping up deficit, defense

Obama’s plans for 2009 would push the annual budget deficit to $1.75 trillion. The 2010 budget increases defense spending by 4 percent, up to $534 billion.

Military pay caps

In addition to the pay caps for civilian government employees, Obama has also proposed a cap on military salary increases. His plan would limit raises for military personnel to 2.9 percent.

Staying honest, cutting waste

Obama has said that some of the budgeting practices used by the previous administration didn’t tell the whole story. He has promised that all spending, including spending on wars in Iraq and Afghanistan, will show up on the books. Still,  he says he’s identified $2 trillion in deficit reductions, which includes several measures to eliminate wasteful and inefficient spending.

Up and down

Though the 2009 budget will reportedly increase the deficit before September, Obama says that he will cut the deficit in half by the end of his term in 2013. About half the money dedicated to achieving that will come from tax increases.

President Barack Obama’s presidential address last night was aimed at instilling hope in the American people and inspiring confidence in their leader. That speech didn’t come a moment too soon.

Obama plans to unveil his plans for the nation’s budget tomorrow. Among those plans, he’d like to dedicate $634 billion over the next 10 years to a health care “reserve fund” that would help pay for overhauling the country’s health care system.

The process begins

Obama’s ultimate plan is to provide universal health coverage. The first step in his 10-year plan is to start a dialogue with Congress on what to do about the 48 million uninsured Americans.

Congress has already approved $32 billion to expand coverage for children in low-income families and $19 billion fund computerization of health records.

A pricey system

Officials called the fund a “down payment” for health care reform. Experts say the cost of paying for all uninsured Americans to have access to health care could easily exceed $1 trillion over 10 years.

Part of the problem is the high cost of health care.

Some experts say 30 percent or more of what the nation spends may be going for tests and treatments of little or no lasting benefit.

Hurting families

Obama says medical bills are a leading cost of individual bankruptcy. The cost of and spending on health care have both continued to rise, even as the economy shrinks.

White House officials say slowing increases in the cost of health care and ensuring everyone has coverage is essential, in the long run, to solving the nation’s budget problems.

More budget requests

Obama’s budget also seeks to extend the $400-per-year tax credit to workers. It also proposes increasing the top income tax rate from 35 percent to 39.5 percent. The proposed budget would also update the alternative minimum tax, which reportedly would add $150 billion to the deficit by 2013.

After he handed out billions of dollars in quick loans to banks, auto retailers and the nation as a whole, President Barack Obama’s next goal may surprise you.  He plans to cut the annual deficit by two-thirds in the next four years.

Big plans

At the beginning of Obama’s presidency, the national debt was $1.2 trillion. That amount will rise to $1.5 trillion after initial spending from the quick loans and other programs in the economic stimulus package. However, Obama’s economic projections say that by the end of 2013, the deficit will be down to $533 billion.

How to slash a deficit

The major components of Obama’s plan are Iraq troop withdrawal and higher taxes on the wealthy. Obama says he’ll release his budget outline Thursday. This outline will also make clear how he intends to deliver campaign promises on health care and energy policy, according to the New York Times.

Funding the Iraq war has accounted for a huge percentage of the nation’s spending, and Obama says his troop withdrawal plan will save about $90 billion.

A few new taxes

Obama proposes taxing income from investments in hedge funds and private equity partners at ordinary income tax rates. Right now those types of income are taxed like capital gains, at the rate of 15 percent. His policy would consider those funds income, and thus they could be taxed up to 35 percent, which is what the most wealthy pay in income tax.

Fewer tax cuts

During Obama’s campaign, he said he would immediately get rid of  the Bush tax cuts on income, dividends and capital gains. However, because of the economy crisis, he plans to instead let them lapse, as scheduled, after 2010 for individuals who make more than $250,000 a year.

Spending cuts

Obama’s proposal will also include spending cuts. One program he proposes spending less money on is Medicare Advantage, which subsidizes insurance companies that cover seniors who could acquire health coverage directly from the government.

He plans to scale back spending on on private contractors. This type of spending went up considerably during the Bush administration. Many of the cuts Obama proposes include cutting spending on private contractors used for defense purposes.

Campaign promises

During his campaign Obama said he would double the United States’ spending on foreign aid. However, given the stimulus package and the economic hardship the nation faces, Obama concedes he will have to scale back that promise.

Healthy promises

However, Obama will not scale back his promise to make sure the 46 million Americans who don’t have health insurance will be covered. He says he can achieve this promise without adding to the deficit thanks to cost-saving changes to health care and by raising revenues.

Energetic promises

Obama says his energy policy will create new revenue by 2012. He plans to charge companies for permits for greenhouse gas emissions, which would be the main revenue generator.  Obama assumes that companies will pass the cost of the permits on to customers, so he says the government will use most of the revenue to offset higher utility bills and related expenses. The remaining revenues would go toward developing alternative energy.

Closing arguments

Obama says is strategy is ”investing in what we need, cutting what we don’t, and restoring fiscal discipline.”

“We can’t generate sustained growth without getting our deficits under control,” he added.

After all the quick loans being handed out, it’s nice to see some debt management kicking in.

Friday, Arnold Schwarzenegger signed California’s much-debated budget, which includes quick loans, hefty tax increases and deep spending cuts. So what’s next?

The tax man cometh

New income taxes, sales taxes and vehicle license tax will kick in on April 1, according to the Los Angeles Times. The dependent tax credit will be reduced, which will apply when Californians do their 2009 tax returns.

Switcheroo

Strangely, about seven weeks after the tax increases go into effect, California voters will get a chance to approve or deny them.  Voters must agree pay the tax increases for the next two years. Well, the next one year and 10 months or so.

Banking on the lottery

On May 19, the same day they vote on the tax increases, voters will weigh in on all ballot measures related to the budget. This is where the quick loans come in.

In addition to the tax increases, Californians will vote on whether to borrow $5 million against future lottery proceedings. That way the state can spend future lottery purchases now.

How much?
Sales tax will go up by 1 cent on the dollar. Obviously, how much this tax costs individuals depends on how much money they spend. The vehicle license fee will double, bringing the total fee to 1.15 percent of the car’s value.

Income tax will go up 0.25 percent. For those on the lower end of the income scale, this will cost about $53 per year. For those making $1 million or more who have two dependents, it will cost about $2,250. The dependent tax credit will be reduced by $210 for everyone.

“According to a legislative analysis of those four tax increases, an average family of four with an annual income of $75,000 would pay $963 more a year in taxes.”

More budget ballot

There will be a few more items for Californians to vote on come ballot time. The budget proposes reducing spending on mental health programs by $226. It also takes $608 million from programs aimed at children younger than 5 years old. Voters will have to approve these measures for them to go into effect.

Another ballot measure would put a cap on future state spending — if the voters say the tax hikes can stay in place four years instead of two.

No free lunch for legislators

State leaders’ salaries could take a hit, too.

A constitutional amendment on the ballot would “eliminate salary increases for state officers, including the governor and Legislature, in years with a projected budget deficit.”

Vote heard around the world

Budget negotiations in California were not pretty this year. California requires that two-thirds of legislators approve the budget. After two weeks of debates and battles, they were still coming up one vote short.

Democrats gave some last-minute concessions and won the vote of Republican Sen. Abel Maldonado. According to Central Coast News, Maldonado became “an instant celebrity.”

What happens?

If Californians vote down the tax increases and spending cuts, it will be up to the legislature to figure out how to fix the hole in its spending plans. The legislature may need to try to find more ways to get quick loans in order to avoid another deficit next year.

Governor Arnold Schwarzenegger

The California Senate has finally agreed on a budget that closes the state’s $42 million budget shortfall through short term loans, tax increases and spending cuts.

The Assembly approved the budget minutes after the Senate, and now the budget only awaits the governor’s signature.

Final approval

After suffering through a stalemate, declaring a state of emergency and sending layoff notices to 10,000 state workers, California Governor Arnold Schwarzenegger is sure to sign. With 276 public works projects in jeopardy, the state will need a few short-term loans to balance the budget.

A little give

After the state budget failed to pass by one vote Monday, lawmakers didn’t have much choice but to give in to one Republican senator’s requests. California law mandates a two-thirds majority to pass the budget. Sen. Abel Maldonado agreed to pass the budget after senators voted for a measure to allow open primaries and removed a 12-cent additional gas tax increase.

Touting unity

One of California’s U.S. Senators was there to urge lawmakers to push the budget through despite disagreements.

“We have to put aside all this ego and put the people of California first. The people of California do not deserve the fate they will receive if it is not passed,” said U.S. Senator Barbara Boxer, D-Calif.

Barbara Boxer

Boxer reminded her Democratic constituents that on a federal level, Democrats also had to give in to some Republican demands in order to get the $787 billion stimulus package.

Beg, borrow and tax

California’s new budget includes increases in income tax, sales tax and vehicle licensing fees. Overall the state is making about $15 million in spending cuts.

In order to close up the rest of the budget gap, California will need about $11 billion in short term loans, and it is banking on support from the federal government.

(photo by wikimedia)

Two counties in California are suing the state controller to get their cash advances for social services.  California Controller John Chiang last month said he would put tax refunds and some other payments on hold for 30 days while state lawmakers try to come to an agreement on the budget.

Right now California is facing a $42 billion budget gap. To further complicate things, California law says two thirds of the legislature must approve the budget in order for it to pass.

Contentious counties

Though California lawmakers are in the midst of budget negotiations, Sacramento and San Diego counties are sending a clear signal that they want their money now. They are suing the state controller for $270 million in cash advances so they can keep the state’s main welfare program up and running as well as foster care and alcohol and drug programs.

Chiang said he put the funding on hold because his top priority is funding schools and paying off state debt.  The counties are concerned that the funding for the programs will be cut in the budget writing process, so they are suing to try to force the controller to release the funds now.

Budget blunders

Because of the huge budget gap California is facing, lawmakers have to make changes that no one is happy with, let alone two thirds of the legislature. The latest plan for dealing with the shortfall included large tax increases and spending cuts.

That proposal was supposed to be put to a vote Friday, but it didn’t even make it that far. The vote was canceled after it was clear there wasn’t enough support for the plan.

Wrangling with Republicans

Consensus indicates Republicans are holding  up the works. With a whopping $14 billion in tax hikes, none of the California G.O.P. members would support the plan. The proposal also included borrowing a hefty sum, $11 billion, which didn’t help matters.

Lawmakers are saying that now is not the right time to raise taxes. They agree with Barack’s decision to cut taxes in the national economic stimulus plan. However, no concrete alternatives have been proposed, so it’s basically back to square one.

Public participation

Another factor that strongly affects the budget-making process is public response. When Californians hear proposals they don’t like, their response is “swift and vocal,” according to the Christian Science Monitor.  For instance, when it was announced on the news that the legislature was considering a veterinary tax, people were outraged.

“I emailed my representative immediately when I heard of this idea and told him I’d vote him out of office next time around if this went through,” said Barbara Fister, a dog owner.

Headed to the courtroom

There’s no word yet on whether the two counties suing the state controller have a good chance of receiving their cash advances; it’s now in the judge’s hands.

Whether you operate a payday loan store or any other kind of business, Jeffrey Fox has some wisdom for you.

Consultant, author and business owner Fox writes in his essay “An Iron-Clad, Titanium-Clad Rule for Getting Business in a Recession: Improve Your Salespeople” that a recession is no time to down on employee training, particularly in sales. Yet that’s exactly what many businesses do, which is counter-intuitive. If you’re cutting sales, you’re cutting the connection between the company and the customer.

During the 2001 recession, Fortune Magazine put it this way: “focus on the quality of your people. We hope it’s no longer necessary to argue that this is increasingly your company’s only source of competitive advantage.” Yet too many companies fail to grasp this; Fox is stupefied by the practice. Blind cost-cutting is, as he puts it, “just dumb.”

Successful companies continue to look for the best people

Think of a sales force as front line troops. If they are not well-trained, they will not only fail, but create a lasting negative impression that can damage your business for years to come. Nobody needs that during a great recession. Fox compares cutting sales training with cutting surgeon’s training, acting rehearsals or pilot simulation lessons. Without preparation, you brew a recipe for disaster.

Dollarize your contribution

When times are tough, your front line troops need the tools to succeed. In business, Fox feels, employees must be able to dollarize the contributions they make, dollarize (give a specific dollar value) the values of their products and services. For a payday loan store, this could mean marketing the product in very real-world terms, such as “By using a no fax payday loan between paydays to pay an overdue utility bill, John Q. saved $60 in reconnect fees.” Another example might involve numbers, but not dollars. Let’s say that “in months when Jane Q. used a cash advance to cover emergency expenses, she was 30 percent more efficient with her budget than in months were she looked to other sources for emergency cash.

Plan well

The key is planning, and it doesn’t just apply to payday loan stores, but to customers. You plan your budget in order to tackle your expected expenses (rent, utilities, credit card bills, etc.), but there will always be those unexpected expenses that life throws your way. Sometimes, your “emergency fund” may cover it, but sometimes it may not. When it doesn’t, you have quick choices to make.

If you do the math and find that your budget will stretch that extra 15 percent with a payday loan, you weigh the cost and decide if it’s right for you. Since a faxless payday loan is quick, convenient and discreet, that 15 percent might just be what  you need to make the “sale” – pushing your budget forward and reaping the reward during a cash crisis. Sell yourself to the benefits, give your budget the infusion to sell your way through to the next payday. Planning that sale is right way to bring yourself the goods that are peace of mind. Not even considering it is “just dumb.”

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Sometimes, payday loans are necessary. When average citizens face the hardships that come along with a deep economic recession, something has to fill the gap if an unexpected expense comes along. Across the nation, an increasing number of middle-class families are embracing this reality, according to Indianapolis Star reporter Jeff Swiatek.

Banks aren’t serving public like no fax payday loans

Unfortunately, misinformed media members like Swiatek can’t see it. They claim that no fax payday loans lock borrowers in a cycle of debt, but it simply isn’t true. Swiatek and others like him bandy about this hollow talking point that sounds sensational but lacks factual support. While it is true that developing a savings cushion is the most ideal way to absorb financial shocks, that does not mean that payday loans equal a cycle of debt. There is no logical connection; the media can bleat the mantra into oblivion while monolithic big banks continue to betray the public trust.

APR and cash advance do not compute

Seriously, the hamfisted attempt at making the association must stop. Truth in Lending laws are antiquated and doddering in their requirement that cash advance stores must post those specific annual numbers. Payday loans are not annual loans. Take my word for it, please. This applies in Indiana or anywhere else, Mr. Swiatek.

Kathy Perron, the president of Momentive Consumer Credit Counseling Service in Indianapolis, considers online payday loans “a very costly way to do your banking.” Ms. Perron, let’s put all our cards on the table, shall we? Payday loans are likely more expensive than borrowing from friends and family. But do you want to hear something that’s truly expensive? Banks and their checking overdraft charges, that’s what.

Payday loans find a sophisticated audience

According to Advance America spokesman Jamie Fulmer, the company has “seen over time our customer profile inching toward a higher income.” Not only does that suggest that the current economic change in America is inescapable, but it could also mean that the clientele for payday loans has become increasingly solvent and educated. In fact, Advance America’s average customer comes from a $43,000 per year household, and half have attended college.

Indiana consumers speak out for payday loans

Swiatek does take a stab at sounding like a balanced reporter when he relates the story of Neil Fitzgerald. Mr. Fitzgerald, an Indianapolis tire shop supervisor, used a loan because he was short of cash to buy a used car after his truck blew a head gasket. Bills made things tough, but payday loans proved to be a bridge to financial stability.

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• About Personal Money Store (personalmoneystore.com)

Cash Advance Mojo hates to restate the obvious, but he’ll do it anyway. America, we’re in a deep recession. The tunnel remains dark. President Obama may have the country moving forward again, but daylight seems like it’s miles away. That’s why it’s very important to save money in whatever ways we can. We’re saving for rainy days like these.

Yet we must not forget to insert comfort into the equation. “All work and no play makes Jack a dull boy,” which is particularly true for those of us who would honestly say that they’d “kill for a cup of coffee.” Hey, some of us need a good strong Robusta blend to get through the day (let’s just say I know people… ) and be productive. Me, I’m more of an Arabica man. In fact, I break for frou-frou coffee. Is that so wrong?

No, it isn’t, and I’m sure Jason Fitzpatrick at Lifehacker would agree. But get this: he has the real beans on how you can make quality coffee at home, minus the Starbucks grande, venti, expensivo price tag. He points out that even though you may not be able to use all of his tips (like using a coffee grinder), but every little bit helps.

Your “Java Jones” checklist:

1. Be a Bean Counter - Robusto and Arabica coffee beans are not priced the same. Robusto is typically cheaper (darn my luck). If you aren’t sure what you’re buying, read the label carefully.
2. Protect Your Magic Beans – Did you know that if you can keep the beans intact (in their original form) for as long as possible before brewing, you’re hanging on to the magic taste that is typically lost in pre-ground mass market brands? If you buy whole bean and have a grinder, you’re getting your money’s worth when it comes to flavor.
3. Grind them at home – A basic blade grinder “costs less than $15 at any kitchen store of big box grocer,” according to Fitzpatrick. If you have extra money to spend and are a coffee aficionado, a burr grinder will do nicely. But since we’re looking at good coffee here on a budget, shop around and decide for yourself. Whatever grinder you choose, remember to grind the beans right before brewing for best flavor and freshness.
4. Store it well – This is in case you don’t finish all that fresh java in one sitting. If you are going to use your coffee beans and grinds quickly, store them in an air tight class container OUTSIDE the refrigerator or freezer. If you must save coffee for a longer period of time, wrap it in individual small bags and put it in the freezer. Once it comes out of the freezer, however, don’t put it back. Drink it down, fireman!
5. Press on – For great flavor, get yourself a French Press. At about $25 or less, it’s much cheaper than using an ornate coffee or espresso machine. It definitely beats a standard pot, in that more of the delicious oils stay in the mix and not in a filter. Grind your beans, put a few scoops in your press, add nearly boiling water, then wait about four minutes. Work the plunger and you’ll squeeze out some great coffee. One of the primary benefits of making coffee in a French press over a standard drip pot is that more of the coffee oils end up in your cup instead of in the machine’s filter.
6. Get good H2O – Truly, few can afford to install a reverse osmosis filter under their sink. If you can, then you have a superlative source for pure water. This improves the taste of the coffee. However, keep in mind that one gallon of locally distilled water costs less than $1 in many places. Cheap refills are typically available, too. But even tap water from home is doable. Fill up a pitcher and let it set overnight on the counter. The waiting period allows certain chemicals like chlorine to evaporate away!

Let’s face it: Americans love a good cup of coffee. We also love to get quality for less. That’s why – if you follow Fitzpatrick’s blueprint -  it won’t necessarily take a cash advance to get you on your way toward being a functional member of the human race each morning. But even if it does, coffee zombies, do your research. I trust you’ll find that the speed, convenience and discretion of payday loans can also brighten you’re day when you need extra cash.

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You save more by NOT buying a hybrid

Bet you didn’t think that was possible, did you?  It is the truth, and we are going to show you why.   First is the initial purchase cost – hybrid vehicles cost about $3,000 more than their gas counterparts, and that is the lower end, and unfortunately no amount of payday loans will cover that cost.  That said, the savings you are supposed to get are not exactly what you think – this may surprise you.

• Cost of gasoline – the cost of gasoline, we will assume for a moment is a constant, and right now it is about $1.50 per gallon.

• Mileage – let us assume a 10 mpg difference between Cars A (gas) and B (same model hybrid), where A gets 30 mpg and B gets 40 mpg.

• Average Miles Yearly – the average is between 10 to 15,000 miles.  Let us assume 12,500 miles a year.  So, yearly gasoline consumption:

A (non hybrid):  12,500 miles a year/30mpg = 416.7 gallons

B (hybrid): 12,500 miles/40 mpg = 312.5 gallons.  Less gas used, ok.
Cost of gas:

A – 416.7 gallons X $1.50 gal = $625.05

B – 312.5 gallons X $1.50 gal = 486.75.  Less money is spent on gas – but there is a difference of only $138.75.

Hybrid saves big – a whopping couple of hundred bucks per year at most

The average time an owner drives a vehicle is between 3 to 5 years.  Assuming that a hybrid owner keeps the car for 5 years, that is less than $700 saved on gas. If the price difference is more than $3,000, you still have $2300 to make up for.  Look at it this way: If you purchase a hybrid, and the mileage is 10 mpg better than the gas model, and the cost difference is $3000 (after clean vehicle tax credit) at $1.50 a gallon, it will take you about 22 years for a hybrid car to pay off.

Of course, the variables are the yearly mileage that you put on the hybrid and the cost of gasoline.  If the figures are adjusted to the previous $4 per gallon and the same yearly number of miles, the annual savings works out to approximately $420. If gas goes back up to that amount, it will still be more than seven years before the difference is made up by the savings on gas. That is even longer than the five year average.  Even the miracle of the hybrid car can’t save your budget like payday loans can save you from overdraft or late fees if you had a sudden expense.

Many people would rather take a trip to the dentist than draw up a budget. But as tools pop up on the Internet, the process becomes much easier. Here are a few online tools that will help you manage your money.

Mint.com

Image via Wikipedia

Aaron Patzer was deemed a hero by CNNMoney for inventing Mint.com, an online budgeting tool. The twenty-something built the site with a goal in mind: turn the savings rate for people younger than 40 positive instead of negative.

The site was named a top pick in Money Magazine, and the service is totally free. The site has fun options, such as comparing your spending with other people from the same city. It has 600,000 users whose average age is 31. Patzer wanted to help younger people because they are most likely to have student loans and other debt, and they are less  likely to save.

The site is quick and easy to use, and it offers advice on ways to make the most of your savings.

MyGoals.com

Another useful tool for people seeking money management help is mygoals.com. One of the goal categories users can pick is personal finance. From there they can choose to set goals related to investing, debt and expenses, major purchases or income.

The site sends e-mails to users to remind them of what they should be doing in order to achieve their goals. And the site handles all types of goals, not just financial ones. Other categories include health and fitness, family and relationships, career and recreation and leisure.

No Fax Payday Loans

Getting no fax payday loans at personalmoneystore.com is easier than ever. This online application lets you apply for payday loans from the comfort of your own home or office. You don’t have to fax any paperwork; the entire process can be completed with just a computer or a phone.

And now, with Personal Money Store’s loan calculator, you don’t have to worry about figuring out how much your payday loan will cost. Just plug in the numbers, and voila, you can view the exact price of your payday loan.

CASH

If you need financial tools that are geared toward business instead of personal finances, visit financialtools.com. Financial Tool’s program, called CASH, serves many different functions, including risk assessment and help with decisions that will increase profitability.

Users of CASH boast that the service is easy to use and provides them with all the financial tools they need.

YoungMoney

Another site geared toward young people is youngmoney.com. The site features articles on money management, surviving on a small salary and taking advantage of student discounts.

Some other helpful articles were about avoiding scams and understanding insurance. The site is geared toward helping young people understand money and form good habits before accruing a bunch of debt.

The kitchen sink

So there you have it, from no fax  payday loans to helping you achieve all kinds of goals, the Internet is the place to go.

Keep the Smile, Keep the Hope!

It all starts with your smile. You need it more than anything else. With your smile in place, that glimmer of hope will continue to be your inspiration throughout the tough times. Looking ahead, and surveying the happenings around us begs the question of financial stability of our future.  Therefore, we don’t need to look outside for hope and strength. We must however, look inside ourselves for the resolve of standing strong despite the circumstances.  The fight is not over unless you raise the white flag of surrender and call it quits.

Get Hope Inside, and an Online Cash Advance

For hope, let us get it from within; for financial assistance, let us look beyond ourselves. Obviously, we don’t have the money to take us out from under our current financial burden.  We are left to acquire assistance by other means, an online cash advance – making it easy for us temporarily, while we work back up to prosperity.

Strategize a Grand Plan to Wealth

We talked about hope and financial assistance.  Yet, these are only starting points. We need to come up with a solid strategy to put our finances in order, to get our debts in control – and eventually build the wealth we have long wished for.  Success does not come as easy as we might think. Lots of effort and planning have to take place to make it happen.

3 Critical Areas to Focus On

First: your income.  How much are you currently earning? Can it support your existing lifestyle? Be creative.  Find ways to earn more money, either by working smartly or supplementing your income in other ways.  If you do your best in your existing work, you can muster the courage to ask for a raise when a review comes.  If you opt for the latter, you can search for other work that will give you additional income at the end of each payday.  However you do it, as long as you are serious about making more money, you will find a way to earn it.

Second: your expenses.  Have your made a list of your expenses each month?  What is contributing to the biggest percentage of your monthly expenses? If you want to address your biggest expense factor, you need data.  Here is where your list of expenses can help.  By looking at the figures, you know what needs close scrutiny.  Then you can concentrate on finding ways to minimize each expenditure individually.  You can find alternative ways to bring the cost of this factor down.

Third and last: your needs.  Define your needs.  Talk to your family members and discuss this.  Needs – one simple word, but one that will make a big difference on your finances. Many may not appreciate how big a factor this is in keeping your finances healthy. How you define your needs will determine your lifestyle.  And if you are not clear about this at the very start, you will eventually be led astray from your goal of financial freedom and wealth.

Make Smart Choices!

Easier said than done.  But nobody said it can’t be done.  It pays to be financially smart.  But in the meantime, go for your best available option.  Play with the cards you have been dealt. If it means going for an online cash advance to ease your finances, even temporarily, go for it.  Make the best out of your current financial situation – and most importantly, learn from it.  As long as you have a strategy to come back financially stronger, it will be all right.