Stop shopping

Before you head to the shops, stop. Start by shopping your home for anything you might already have which is on your children’s supplies lists. Your kids probably have pens, pencils, staplers and folders which can be used again this year, and their school shoes and clothes probably still fit; at lease well enough to avoid a trip to the shops in the back to school rush, and wait until they go on sale in a few months.

You can also hold off for better deals on things like backpacks, thermoses and lunchboxes which will go on sale several months after school goes back, so if you can convince your kids to go back to school with some existing supplies you can save. You may also be able to organise a clothing swap with some other parents so your kids can get rid of some clothes that don’t fit or which they are simply sick of, and you can pick up some new supplies for free.

Don’t forget that it’s not all about how you shop, it’s also about what you do after you shop, because you can claim back 50% of education expenses for things like computers, internet costs, printers and text books through the education tax refund. For each primary school student you can claim $397 and for each high school student you can claim $794 so remember to keep your receipts.

Give your kids a learning experience before they go back to school

Back to school is an opportunity to teach your children some important lessons about money. You can start discussions on the difference between needs and wants and negotiate back to school budgets with your children, and allow them to manage those budgets depending on their age. If your children then want something more than what was agreed on in the budget, they will have to pay the difference with their pocket money, or you can ask them to do chores to earn that money such as mowing the lawns or babysitting.

Clothes can be an especially contentious issue when going back to school which is why it is important to set some ground rules and specific budgets before you set off. Choose clothes which will give your children room to grow, and which are in solid, neutral colours which will be easy to coordinate to create numerous outfits, and will look less dated over time.

If your children are quite young it can also be helpful to shop alone, not only saving you time but also saving you money. If your children haven’t grasped the budgeting concept yet then you will be setting yourself up for a day of ‘No’, to everything from coloured pens to branded backpacks. It may also be a money saving exercise to send mum to do the shopping rather than dad as the American National Retail Foundation found that dads expected to spend $671 on back to school while mums planned to spend $545, so you can save 25% instantly.

Shop around

Plan your back to school purchases well, before you leave the house because you can find specials across a range of stores and save yourself money by shopping around. You can also keep your eye out for coupons for the school supplies you need, and don’t worry if you can’t always get to the named store in time for the sale as many of the other large department stores will match a competitor’s coupons.

Don’t be afraid to shop at the discount store for some school supplies either because you can often find a wide variety of paper and other items that you’ll be able to afford to bring your child along and let them choose from the array.

You may also be able to find some back to school bargains at garage sales or thrift stores, such as clothing, bags, interesting tins which can be used as a pencil box – the opportunities for unique and affordable school supplies abound if you want to spend the time. To save on some of the running around you can also search for bargains online at places like eBay and Craigslist. You can often find brand named items for a fraction of the retail price and you don’t have to leave the house.

And remember, if you do find a fantastic bargain on a back to school item, stock up on enough for the entire year, not just the next few months.

Make the right purchases

You can save yourself time, money and heartache by buying the right items the first time. This is especially important when it comes to:

• The backpack. Your child’s backpack will take a lot of rough treatment throughout the year and you want it to survive. However, the backpack is also a health issue as your child shouldn’t carry more than 20% of their own weight on their back. Therefore, if your child is likely to overstuff their bag, buy them a smaller one so they have to make stops at their locker in between classes. Also make sure the pack you choose has wide, padded shoulder straps, or if you think your child will use it you could buy them a bag on wheels.
• Technology. It is easy to go overboard when you want your kids to have the best technology going into the new school year so you may be considering buying a computer exclusively for your child’s homework, and you may need to upgrade your internet connection or data. Again you can look to sites like eBay and Craigslist where you can find a great deal, or go to your local computer store and ask about their refurbished machines. When it comes to additional technology such as a mobile phone, mp3 player and the like, you need to judge these purchases on your child’s age, and the learning and safety benefits they will be getting. Remember that a mobile phone can help you give your child freedom without losing touch, and many mp3 players can also be used as USBs.
• The calculator. A very important piece of technology your child will need to complete their math classes as they progress through school. If your child requires a scientific calculator invest in a good one as it will last for years and it won’t let them down in an exam.

It is always important to consider the quality of the back to school supplies you are buying because you really do get what you pay for. It may not be a big deal to buy the cheapest lead pencils or sharpener, but for investment pieces and things which will be important to your child’s success look at how these items are made, and whether they will last for a few years to come. Some items will even come with a lifetime warranty so if you invest a little more now you can save in the long term.

DIY

Of course a lot of the value of school supplies is in the aesthetic, and that can be lost when you’re shopping on a budget. Instead of sending your children to school with boring supplies, buy a few sets of cheap stickers or labels while you’re at the discount shop so your child can decorate their books in their own way and have the most unique school supplies in the class.

Alban has been offering money saving tips through various blog posts and contributions. When he is not sharing his experiences online, Alban reviews the best personal loans

Budgeting can be an invaluable tool for maximizing the return on our hard earned income, instead of limiting our home time, by acquiring supplemental occupations. Many are pleasantly surprised to see that the time and effort required implementing and maintaining a household budget can often yield a result comparable to that of creating extra income by other methods.

Personal Finance as A Second Job:
Constructing a household budget and sticking to self-imposed financial guidelines can certainly be classified as a job, but good budgeting practices are well worth the time spent. The fruits of your budgeting labor can be far greater than you may realize. Instead of finding an extra job to bring in needed income, you can reap many added rewards by getting serious about managing your family’s finances. Putting the same amount of effort into your budget, as you would a second job would be a more practical road to greater financial stability. Your feelings of personal accomplishment and financial control can easily overshadow the drudgery and loss of family time required for a supplemental job outside the home.

How Do I Start My “New Job?”
Your first day on the household budget job is like that of any other new occupation. You will need to become familiar with your workplace and its requirements. Filling out the proper paperwork is the first task. You will need to determine how much money is needed to maximize your business operations.

You are the CEO, so creating a mission statement with clearly defined goals is essential. Gathering household bills and determining your family’s historic spending habits will paint a picture of what needs to be accomplished. As the years pass, your family will change and so will your goals and habits. A budget is a constantly evolving enterprise.

Determining and Tracking Cash Flow:
As is the case with any other business, you will need to organize the bits of information you have collected into coherent documentation that is easy to display and understand. Creating spreadsheets to show where your money comes from and where it goes will allow you to determine your household’s economic path. Categorizing expenses will show the leaks in your financial pool.

You will need to think about and document expense information that may not be accessible on paper. Your child’s lunch money, a night at the movies, or hair accessories for your daughter’s prom may not be documented by receipts. Your budget will be more accurate if you are able to document all the places your money goes.

A financial statement of your household assets and liabilities will help your future budget. This is particularly true if life events do not allow your family to progress financially as originally planned. A statement of net worth is a borrowing requirement, if you must obtain a loan for any reason. Forecasting the effects of financial decisions in relationship to their impact on net worth and cash flow can assist with good decision making.

Achieving Workplace Cooperation and Uniform Procedures:
The workplace always runs more smoothly when everyone works towards the same goals. Your family is no different. Clear communication of goals and purposes within the household budget workplace will make your family finances run like a well-oiled machine.

Make sure your family members know your financial expectations and reward them for a job well done. The money they save can purchase a fun activity or special desire. Periodic shareholders meetings and reports can help your family resolve economic issues in organized fashion. Make them part of your support team!

Organizational skills and flexibility are key characteristics for running a profitable and efficient business. Unwavering attention to the details of household earning and spending can make your economic independence a reality. Recruiting your best allies to make the business of family finance pay-off is the key to success.

Author Thomas Hathaway is a financial consultant and content contributor for payday loans uk, a site which provides information and advances when you need an advance on your paycheck.

The counselors associated with the debt consolidation firm will review your financial situation before formulating your repayment plan. Debt consolidation is a viable option for debt laden consumer as you do not damage your credit score. The debt arbitrators will negotiate with the creditors to lower the interest rate on the outstanding balance to make it affordable to pay off.

What are the disadvantage of debt consolidation?
There is a mushrooming growth in the scam companies that target vulnerable consumers to extract money. If you are associated with a scam debt consolidation then your credit score might drop. The fraudulent company might take money from you to pay off the debts but they put the fund in their own bank accounts instead of pay off the creditors. Therefore, if your bills are not paid then your credit score might drop considerably.

Another disadvantage of debt consolidation is that when the debt arbitrators negotiate with the creditors to lower the interest rate then you pay less than you actually owe to the creditors. The creditor reports the account as “settled in full” rather than “paid in full.”

What is effect of the debt consolidation on your FICO score?
When you consolidate your debts then your credit rating improves as you pay off your debts on time. But if your account is closed then it might damage your credit score. When you close the account then your available credit drops but the debt balance remains on your credit report. Therefore, it is advisable not to close the older accounts.

What are the types of Debt Consolidation?
The debt stricken consumers can transfer the high credit card balances to a low interest card to make it affordable to pay off. You can also take out a home equity line of credit to consolidate your debts. Your credit score will not drop if you take out a home equity line of credit for debt consolidation.

First things first though, and this is the idea that you need to focus on keeping your car in great shape. Most all advice on how to keep costs of driving down is going to tell you maintenance is key. You want your car serviced regularly to make sure it is burning fuel efficiently and that you are able to catch problems as soon as they arise. If you get this part of owning a car down, it is a habit that will lower costs throughout the rest of your life as a driver.

Another important thing you can do is try to minimize your trips by practicing good organizational habits. If you need to go out, try to think of everything you might need in advance, write out a list of places and create a sensible route that keeps your mileage low. This is smart for you and it is good for the environment, too, since it means you cut out unnecessary driving. A lot of ideas for how to keep costs of driving down do focus on driving your car as little as possible, but keep in mind that you do need to run your car several times a week to avoid problems that can occur if it is not in regular use. Another big area for lowering driving costs is in being careful about how much you pay for insurance. Often, you will discover that a lower cost policy is possible if you shop around, especially by going on price comparison websites. This is a key area of savings for many drivers.

If you keep your car in good shape, focus on reducing miles when you can and be sure that you have an effective insurance policy that is not beyond your budget, you should do well. The rest comes down to common sense and being practical. This is how to keep costs of driving down for those of us that live in the real world these days. It can take some discipline to do it right, but the savings are worth it.

Without doubt, the fact that the British Prime Minister, David Cameron, had earlier refused to bow to pressure from much of the rest of Europe on the new treaty did little to warm Anglo-French relations. Even so, some unhelpful comments which seem to have been orchestrated from Paris about Britain’s financial status were very much out of line. Clearly meant to distract attention away from the threats by rating agencies such as Standard & Poor and Fitch to downgrade France’s credit rating, the French have gone out of their way to undermine the UK’s economic strategies.

President Sarkozy outwardly seemed unperturbed, and commented that the loss of France’s triple-A rating would be “not insurmountable” and would be faced “coolly and calmly”. Their foreign minister, Alain Juppé, also appeared not too bothered about any possible downgrade.

But then why the need for Christian Noyer, governor of the Bank of France, to discuss the UK’s credit rating? His remarks to Le Télégramme, a French newspaper, has inflamed tensions within the EU, and angered Britain. Noyer said “A downgrade does not appear to me to be justified when considering economic fundamentals. Otherwise, they should start by downgrading Britain, which has more deficits, as much debt, more inflation, less growth than us and where credit is slumping.”

French finance minister Francois Baron added fuel to the fire by calling the UK’s situation “very worrying” and suggesting France was better off economically.

Not to be left out, the French prime minister, Francois Fillon, has also criticised the UK’s economic position. He apparently told the British Deputy Prime Minister, Nick Clegg, that he was merely pointing to how inconsistent ratings agencies were, in calling into question the credit rating of France, but not Britain.

The French have conveniently overlooked the statement by Fitch, the American ratings agency, that a “comprehensive solution” to the eurozone crisis was “technically and politically beyond reach.” Stronger european economies could end up having to bail out other members of the failing Eurozone, and its banks could be hit hard. The UK, which isn’t part of the eurozone, would still be harmed if more countries in the eurozone needed a big bailout, but without the same exposure.

The fact is that calling into question another country’s credit rating, especially another within the EU, is a big non!

And why does it matter what credit ratings are given to a country? Because it can adversely affect how much interest is charged on government borrowings.

Between August and October the number out of work in Britain rose by 128,000 meaning 2.64 million people are now unemployed.

Jobseekers’ Allowance claims have also risen, unsurprisingly, with 1.6 million people claiming it.

Virtually every region, apart from Northern Ireland and the East Midlands saw a rise in the unemployed rate.

So, what’s the reason behind these new statistics? The government will, no doubt, blame it on the eurozone problems. The unions will blame the government for public sector cuts.

Whatever or whoever is to blame, the saddest thing to many is that the young are being hardest hit. The number of 16-24 year olds out of work went up by 54,000 to 1.03 million. There are a lot of genuine young people out there who are desperately wanting to find a job, but can’t. And if the Eurozone situation isn’t resolved soon we can only imagine the dreadful effects that will have on countries like Britain, even though we aren’t part of it.

Changing Employment to Increase Your Income
The obvious things to look at are in the areas of employment. With your own job, can you seek a promotion to a different level which will mean an increase in salary? Do you have skills which might help you find a part-time job to supplement your wage, even if only as a temporary measure? It might mean working for a few hours in the evening after your normal job has finished. It could be something that you can do on the Internet if you can find a niche. There are various ways to increase your income if you take the initiative. That bit of extra income could just be enough to get you by until some of your debts are paid off.

And don’t forget the obvious; asking your boss for a pay rise. If you work for a smaller company you might be in a better position to negotiate a rise than if you worked for a larger company with fixed scales. Your boss might be prepared to offer you an increase if you are a good, reliable worker, rather than taking a chance of losing you and possibly having to train someone new up.

If married, there could be other ways to increase your income. Could your partner find a job for themselves, even if only part-time? It’s surprising how often just a small but regular wage can make a big difference to the family finances. People of working age who are still living at home should be expected to contribute towards the costs of running a home, so work out a realistic amount for them to hand over.

Getting a Job to Increase Your Income
If, unfortunately, you are out of work, as so many are in this economic climate, what steps are you taking to look for work? Someone once said that getting a job is a job in itself. That is so true. There are so many people often all applying for the same position that employers can pick and choose the best. You need to stand out from the crowd. Don’t just rely on the jobcentre, but put your CV on sites where you can register with job agencies, though you need to make sure the agency is reputable. Nowadays there is little excuse for not having a well written CV. There is a range of templates which take you through step by step showing you how to fill in a CV. Send off letters on spec to employers you think might be hiring. If you are interested, say, in retail work, call in some stores on the off chance they are looking for staff.

For some, however hard they try, getting a job seems an impossibility. Younger people are statistically finding it harder to get employment, and the numbers of those who are out of work for 2 years or longer are rising. A new organization has been set up to help bring prospective employers and employees together. It’s called Recruitwork, and they featured on a morning news programme on TV recently. The idea behind Recruitwork is to allow people from all backgrounds and skills to search & apply for a job, create CVs, and obtain advice, which can be very important for those searching for employment. The more avenues you can find to put yourself forward to employers the better.

Take in a Lodger to Increase Your Income
Some people are able to take in a lodger to help ends meet. At current figures you can take in a lodger and receive up to £4,250 without having to pay tax on it. The Rent a Room scheme is open to you whether you are renting or buying your own home, though you should check to make sure you have the necessary permission from your landlord or mortgage lender before going ahead. If you don’t mind the idea of sharing your home and are willing to take in a lodger you could dramatically increase your income. Further reading on the take in a lodger plan can be read on the government’s website on the Rent a Room scheme. You might also be able to take in foreign students.

State Benefits Could Increase Your Income
Sometimes it can be a question of getting financial help you are entitled to, but you don’t know about it. Help by means of government benefits may be available to you, particularly if you are out of work, or in work (or self-employment) and on a low income. The disabled are eligible for additional benefits. Extra benefits are usually available for those raising children up to a certain age. People over a certain age, usually retirement age, have increased or completely different entitlements too. State benefits are one way you might be able to increase your income.

What you will rarely find, though, is that you’ll be told about what you can and can’t apply for. The onus is on you to ask. If you can’t get the benefit then you’ve not lost anything. If you can get financial help then it can make a big difference to you. The majority of benefits are means tested, but don’t let that put you off, just apply.

And don’t wait, benefits can only be backdated for a certain time period.

If you want some advice on benefits then you could visit the Citizen’s Advice Bureau.

Pension Credit
The Guarantee Credit element provides a guarantee of a minimum level of weekly income – currently for single people (£137.35) and couples (£209.70). The individual applying must be over the qualifying age, although their spouse can be younger. Pension Credit is something brought in by the Labour Government years ago in order to provide a safety net. Generally it has worked well, but it is important for those who qualify to know their rights, and to apply for pension credits when due. Unfortunately it is estimated that of those who qualify for this means-tested benefit there are around one third who don’t take it up.

In fact Pension Credit could even rise slightly, as there is the possibility that the basic state pension of £102.15 is raised to the same level as Pension Credit (which is means tested) and rounded up to £140.00. The government wants to simplify pensions and make them more transparent.

For those older in years they should be aware of the Winter Fuel Payment to help them pay for fuel bills during the cold season. This could mean an extra £200 or more (depending on age and other circumstances) so is well worth having.

You may get a Winter Fuel Payment for winter 2011/12 if both the following apply:

you have reached the qualifying age (born on or before 5 January 1951)
you normally live in Great Britain or Northern Ireland on any day in the week of 19–25 September 2011

Those who qualify may get the Winter Fuel Payment paid to them automatically, or they may have to apply.

Certain UK social security benefits are also available to those people working or living abroad.

You might have read about unlocking pensions income. This is where if you have a personal pension, or possibly another kind of pension, it will allow you to obtain an income prior to, or at retirement.

Hopefully some of the above suggestions about ways to increase your income may be of help in giving you freedom from debt.

Quick Boost to Your Income
Students might find some of these tips of use, though most of us can probably make some quick income from them:-

Clear out your unwanted items and sell them. eBay is one of the best ways to sell something you no longer need, and by waiting for the ‘free’ posting days you don’t even have to pay commission on the sale.

With some gadget-type items you could use one of the many websites where they will offer you a certain amount depending on the model, age of product, condition etc. It’s a good way to clear out any mobiles phones, cameras, MP3 players etc and get paid for doing so. All that happens is that you visit the website, locate your gadget and a figure will appear telling you what you can get for it. Assuming you are happy with that offer you will receive a freepost bag; you then send the gadget to the company and some time later you will normally receive a cheque.

Although unlikely to give you a regular income, you could at least gain some boost to your finances in the short term, and be helping the environment through recycling.

Budgeting Tips For Students Video

We All Need Credit
Credit in itself is not wrong. All of us to some extent use credit. Unfortunately millions of people in Europe have been facing increasingly tough times and are finding themselves in debt. Even some countries’ governments have faced bankruptcy and have had to take drastic measure to balance their books. It’s unlikely that Italy, Greece, Ireland and Portugal. for example, will experience freedom from debt for perhaps decades to come. It might be that you need to sort out your priority debts you have to pay in order to keep a roof over your head.

Before thinking about the more drastic ways to get out of debt, you should also be looking at your day to day living costs, as well as making the most of any savings you might have. Doing this may help you to such an extent you find freedom from debt without any need for outside help. It must also be said that sometimes the problems have gone too far and professional help should be sought in order to cut your debts.

The magnitude of our debt problem is Citizens Advice Bureaux in England and Wales dealt with 8,652 new debt problems every working day during the year ending September 2011.

And since 2007 foreclosures in the US amount to around eight million homes with the picture getting gloomier by the day with many Americans close to the poverty line.

Bank Interest on Savings
Low bank borrowing rates throughout Europe has resulted in those of us who have savings suffering lower returns on our savings. And in those countries where the level of inflation is higher than the deposit rate, it means that freedom from debt can be even harder to achieve, as inflation erodes the value of savings. Some countries have their own schemes to encourage people to put money in to accounts which are tax free. The UK, for example, has what are known as Individual Savings Accounts, or ISAs. Individual savings accounts were introduced in April 1999. They are simply a tax wrapper within which you can hold a range of different investments, within which returns are tax-free. You can open one cash ISA and one stocks and shares ISA each tax year. The amounts of money which can be invested in either or both tends to change each tax year. For individuals who are liable to pay tax this form of saving can be effective, as not only do your underlying investments hopefully increase in value, your ‘profits’ are not taxed. The individual subscription limits from April 2011 are £10,680. The full amount can be invested in a stocks and shares ISA with one provider. Or up to £5,340 can be put in to a cash ISA with one provider, and the other £5,340 can be placed in a stocks and shares ISA with the same, or another provider.

Perhaps not the best way to secure freedom from debt

Be Prepared To Switch Savings Accounts
Talking about investments, whether you use an ISA or not, never just put your savings into an account and assume you are will be getting the best rate of return. Banks and building societies are notorious for offering attractive rates to new savers. After a while though those rates can become unattractive when they fall, or other products come on the market which are better. Rarely will you find a financial institution contacting you to tell you about newer improved products. Whilst you are on a lower interest plan they can get away with paying you less. So be proactive, keep a look out for better rates than you are currently getting, and be ready to switch if necessary.

Take Action to Reduce Credit Card Debt
What is a viable solution for this problem of trying to pay down debt on our credit cards? Target one card to payoff! Make the minimum payment on all the other credit cards and then use all remaining funds to pay down the targeted card.

It is best to pick the credit card that you have the highest interest rate on as the target. Tear this card up so you cannot use it for any other purchases. Continue this until this card has been paid off and then pick your next target in the same manner and repeat the cycle until you are down to just one credit card for everyday use.

It might also be worth contacting your credit card providers to ask if they will consider reducing your interest rate for a time. If you don’t try you won’t know, and it’s amazing how many companies would rather receive less interest from you than see you default on your borrowings altogether.

Debt Freedom Day
A term coined to show how long it takes the average consumer to have earned enough to cover their debt interest for the year. During 2011 Debt Freedom Day was 15th February, five days earlier than it was the previous year. That’s surely a sign that people are less inclined to want to take on debt, as well as consumers wanting to pay off their debts faster. In the UK the typical consumer will pay £2,900 during this year just in interest on loans and credit cards.

With the global economy as it is, the number of Europeans with debts is on the increase. If you are already making the most of your savings then you would do well to look for ways of reducing your outgoings. It isn’t easy to secure freedom from debt, it can be a painstaking process, but for many people it can be achieved.