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Pay Off Your Debt Early in 6 Easy Steps

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Debt is a common burden in today’s society, and one in which many people are even encouraged to take on in certain circumstances, such as mortgages, student loans, car payments, and even for credit card rewards. However, all debt must be repaid eventually, and if you do not pay close attention to your spending habits, such debt could quickly add up to a high amount, especially when interest comes into play. If you have accrued a lot of debt, do not worry – there are programs and companies that can help you manage and decrease your debt as quickly as possible. Here is a list of six things you can do to pay down your debt as quickly as possible.

  1. Consolidate Your Debts

There are companies that will give you a “debt consolidation loan,” which means they combine all of your debts into one loan so you only have to pay one amount every month. This makes the debt much easier to handle and pay off. This is a great option if you have a lot of different kinds of debt, so make sure to look into this option first. If you happen to live around Sydney, search for companies offering debt consolidation Sydney residents are hiring.

  1. Make Payments Higher than the Minimum Amount

If it is at all possible, try to make payments above the minimum amount every month, or at least as often as you can afford to. Oftentimes, the minimum payment goes mainly towards the interest on the loan, so it is difficult to pay off your actual balance by only paying the minimum amount. If you pay even a little bit more than absolutely necessary every month, you will pay off the principal amount much faster, which in turn will lower the debt much faster.

  1. Prevent More Debt

When you are trying to get out of debt, it is very important that you prevent more debt from occurring. If you cannot help but spend money with your credit card, cut it up. Do not buy other expensive items like new cars unless it is absolutely necessary. Once you take on more debt, it will become even more difficult to pay off your debts, so do whatever is necessary to not take on any more.

  1. Make a Budget and Stick to It

This is a very important step, because some people do not truly know where their money goes every month. Print out your bank statements for the past three months and write down exactly what each dollar was spent on. Then, create a budget – and stick to it! When you do this, you will have much more money to put towards your debts.

  1. Cut Out Unnecessary Expenses

When trying to get out of debt, cut down on eating out, going to movies, buying concert tickets, and everything else that is not food, lodging, and other essentials.

  1. Earn Extra Money

Consider picking up a part-time job or side hustle to earn a little extra income. Then, use that extra income to go ONLY towards your debts. This will quickly make a difference in the amount you owe!

Hopefully, this list will help you get out of debt as quickly as possible so you can begin to spend your money more wisely and save up towards the things you want. Debt consolidation is a great option, so find out more information today.

8 Rules to Decreasing Health Care Cost in Retirement

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As we age, our health care needs change, often becoming more prominent than our younger years. Aches and pains become constant, prescriptions pile up and doctor visits become more frequent. Just as we start to really need health insurance the options get slimmer and more expensive. In a real catch 22, new data shows that retirement benefits are decreasing due to rising health care costs.

Getting health care coverage in retirement can be costly, but it’s not impossible. There are also things you can do to decrease the overall cost of health care coverage once you reach retirement.

Rule #1 – See If You’re Eligible for Medicare

Medicare is a federal government insurance program for older Americans that covers 80% of allowable expenses. Those who are eligible for Medicare will have most of their health care needs covered for free or a low monthly premium. The main criteria for eligibility is age. You must be 65 or older to get Medicare.

Rule #2 – Take Out a Medicare Supplemental Plan

Retirees will still have to cover some expenses while using Medicare. You can reduce the out-of-pocket expenses with a Medicare Supplemental Plan, also known as a MediGap plan. If you’re already eligible for Medicare Part A and Part B you should be able to get a MediGap plan. There is a monthly premium, but for most people, the cost is lower than going without one.

Rule #3 – Start Planning for the Future Now

It’s never too late to start planning and saving for retirement – even if you’re already old enough to qualify for Medicare. In fact, younger people are encouraged to plan for retirement medical expenses without the help of Medicare, which is projected to run out of funds for Part A coverage in 2028.

If you’re still working and haven’t signed up for Medicare yet it’s a good idea to start a Health Savings Account (HSA). They come with major tax-saving advantages. Medicare recipients can’t add to an HSA, but they can use the tax-free money in the account to pay for medical expenses after the age of 65.

Rule #4 – Don’t Forget to Anticipate Cost Increases

One of the most common mistakes that people make when they plan for retirement is to not account for increases in medical expenses. On average, health care costs increase by 5% annually. However, in retirement years it’s better to plan for a 7% increase each year.

Rule #5 – Stop Smoking

One of the quickest ways to increase health insurance cost and life insurance premiums is smoking cigarettes. Smoking can lead to a number of chronic illnesses that cost a fortune over the long run. That’s why insurers increase premiums if you smoke.

Rule #6 – Take Advantage of TeleHealth Services

If you haven’t heard of telehealth services yet you soon will. In an effort to halt the increasing cost of health care, a number of new approaches and services are being offered. Instead of meeting with a medical professional in person you can communicate in real time using an interactive audio/visual telecommunication system on your phone or computer.

Next year, telehealth services will be made available in some states. Telehealth services will also be available to Medicare recipients.

Rule #7 – Stay Healthy

Last but not least, stay as healthy as possible. A new report from Fidelity estimates that the average couple will need $275,000 for medical expenses in retirement.

Good nutrition and lifestyle habits minimize the need for medical intervention now and in the future. Getting at least seven hours of sleep a night, hitting the recommended number of minutes of weekly cardio and eating a diet of whole foods is the easiest way to avoid chronic illness and reduce the cost of healthcare in retirement. Bonus – healthy habits also increase quality of life!

Rule #8 – Sign Up for a Wellness Program

If you’re still working see if your employer offers a wellness program. Sometimes employers will offer reduced health insurance to employees that join the program and work on maintaining good health. The money you save on health care costs can be put to retirement savings for added benefit. Another advantage of wellness programs is you can learn how to create healthy habits for the future.

Strategic Options for Emergency Expenses

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It’s easy to say you should save money for emergencies. It’s even a really great plan, but it isn’t always possible. However, when you have the emergency situation under control saving as little as $10 a month can go a long way to preparing you for the next emergency. But what if you need the money right away?

Savings in Hidden Places

You may already have savings that you haven’t even thought about. There are several financial products you may have which you can tap into. If you have a life insurance policy, you may be able to withdraw a portion of the accumulated cash value of the policy. The amount which is available will depend on the policy size and the length of time you have been making payments towards the policy.

Other options include retirement accounts, private IRAs, and even college savings plans like the 529. If you have ever put money into any of these types of accounts you can probably withdraw at least a portion of the money. This should really only be considered as a last result, however, because it will almost certainly result in a tax penalty.

Installment Loans and Credit Cards

If you don’t have access to any type of savings but you do have a job, you may want to consider an installment loan. These are smaller loans that are available more quickly than a traditional loan and they are available to people who don’t have perfect credit. In the past, many people only had the option of a payday loan but these have a bad reputation for making financial difficulties worse.

Financial lending companies realized this and created small installment loans to give consumers a better option. If this is something you’d like to consider, get more info about the types of products and eligibility requirements in order to make a truly informed decision.

Another option may be to secure a credit card. This is a solution that requires a bit more forethought. You will need to obtain a credit card and then keep it set aside only for emergency use. The only problem is, most credit cards take several weeks to arrive in the mail which may be longer than you have in a true financial emergency. If you need money immediately the installment loan may be a better option.

Leverage the Gig Economy

The gig economy presents a fantastic opportunity for those who find themselves in need of emergency funds. If you have a special skill or reliable transportation you are well on your way to having the ability to make money quickly if the need arises.

There is always a high demand for people who are able to tutor students. If you have experience in a subject field and access to a computer, it is likely you can make some extra cash tutoring in your area of expertise. There are a large number of websites which are devoted entirely to helping students find tutors. Some of these offer direct employment and will take more time to begin earning money. Other sites offer the ability to complete the exchange between two individuals. Using free video conferencing and electronic payment methods such as Stripe or PayPal will allow you to begin tutoring foreign students in English almost immediately.

Writing is another career which allows people the freedom to take only the work they want and be paid upon completion. There are many companies who keep a pool of writers on hand to complete work as it comes in, signing up for one of these is an excellent way to establish yourself and have access to emergency funds. Alternatively, there are bidding sites that allow people who have a writing project to find freelance writers for single assignments.

If you don’t feel comfortable teaching or writing or even working online, there are plenty of gig opportunities that can be completed in person. Uber and other ride services allows almost anyone to turn their reliable mode of transportation into a money-making taxi. Other services allow individuals to deliver food, groceries, and complete other tasks for immediate payment.

When you need money quickly for an emergency it is always reassuring to have some hiding in savings. When that isn’t an option securing and installment loan or relying on a credit card are good options. Alternatively, having a fallback gig that brings money in quickly may also work. Ideally, you will cultivate a combination of methods so you have multiple options in an emergency.

One Step At a Time:Taking Your Kids On a Financial Learning Journey

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One of the most valuable lessons you can teach your kids is about the importance of money. However, long, laborious lectures aren’t going to work. Instead, you need to turn day-to-day things, like going to the bank or the ATM machine, into lessons about money.

When your children are young, you can turn imaginary games into real-life money concepts that they can learn from. So, here are some lessons you can incorporate into your child’s day that will provide them with savvy financial advice for the future:

Where Does Money Come from?

It’s easy to understand why kids think money grows on trees, especially in a day where reams of cash come straight out of a hole in the wall. That’s why it’s important to teach them where the money comes from, and that it isn’t an endless resource. Explain that, in order to get money from the bank, you need to work hard first, and that the bank is just a safe place to store it (understandably, after the recent economic crash, you will have to remove some of your cynicism from this remark)!

How Can I Budget for Things I Want?

One of the easiest ways to teach your kids how to manage money is to give them an allowance. Therefore, if they spend all of this on the latest video game, they’ll learn they won’t have enough left over for the new pair of shoes they’ve been looking for. This allows them to gain first-hand experiences of what happens if they overspend and don’t budget properly.

Why Should I Save?

Impulse buying is easy when you’ve been given some money, but your child needs to learn that you shouldn’t spend all your money as soon as you get it. So, when you go shopping, create a list and allocate a budget to each item. Then, look at prices online and for any offers, comparing these to make sure you’re getting the most for your money. This routine planning will help them to make good financial purchases in the future.

Why Should I Be a Bit Skeptical?

Even though you don’t want to make your child feel as though every company is corrupt and out to get them, it’s important they understand the need to look into every deal or contract in detail. For example, if there’s an offer on the TV, it’s key they understand the company is trying to sell them something by making them feel a certain way. I.e. if you have these clothes, you’ll be the most popular kid in school.

This will provide them with important skills they can use when taking out loans or credit cards in the future, teaching them to learn more about the application before proceeding.

Why Should I Keep Track of My Spending?

You child’s money management skills will be enhanced just by knowing exactly where their money is going. To keep track of their spending, encourage them to set up a spreadsheet on their computer or in a notebook, making a file for all their statements and receipts.

With these simple tricks, you can start to teach your child important life lessons that will help them significantly in the future.

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We left our home in Sydney, Australia many moons ago in May 2012 and, other than a brief stint back in Perth for Christmas and a wedding in early 2014, we have been travelling the world nomadically ever since, running a business from our laptops and we’re here to show you how to do it!