You need to straighten out your finances!  National and global economic forces are conspiring to drive you further down the economic ladder.  In “Nation Briefs” (“Poverty at Record High, Middle Class Shrinking,” Miami Herald, 12/15/11) latest census figures reveal a shocking increase in poverty.  According to the data “a record number of Americans – nearly 1 in 2 – have fallen into poverty or are scraping by on earnings that classify them as low income.”  Yes, you read that right – half of the population!

The most likely to be poor; Children and Senior Citizens.  In fact 57% of children in this nation are considered poor or low income. Next in line are those over 65.  By race and ethnicity Hispanics are first at 73%, followed by blacks and Asians; finally white non-Hispanic.

You may not be able to do anything about the economy, but you can certainly work at improving your own finances.  And, while you’re at it, show some compassion and understanding for those who are slipping behind.  It’s important to share with others when you’re in a position to do so.  What makes this country great is the tapestry of diversity, community, and opportunity.  Let’s pull together.

Single moms have the same financial concern as anyone else but they don’t have their spouse to share the financial burden. Therefore, being in debt in not a pleasurable experience for single moms as they are required to manage their financial obligation as well as take care of the kids single handedly. Many of these moms take out payday loan at the middle of the month to manage their unexpected expenses. If you are unable to grapple with your multiple short term loans then you can get help with payday loan debt by enrolling in a debt relief program.

Make sure you follow the financial tips mentioned below and create a budgeting plan in order to avoid financial crisis in future:

1. Remember that minimum 20% of the income should be allotted towards food. Food is an essential requirement for an individual to survive and lead a healthy life.

2. Make sure that your utility bills like electric bill, grocery bills, sewer etc should not exceed 10% of the gross income.

3. Make sure that you buy health insurance and your medical expenses should be within 5% of your gross income. It might be inclusive of the medical bills as well as paying towards your health savings account.

4. Entertainment expenses should be strictly below 5% of your gross income.

5. Make sure that you save 5% to 10% of your income in the savings account.

6. Single moms should pay below 20% of the gross income on your mortgage debt. Make sure that your debt to income ratio should not exceed 30% of the income.

Here are few financial tips that the single moms should keep in mind to enjoy a debt free life:

A single mom should file for child support in order to manage your child’s basic living expenses. This might help you in managing your finances single handedly.

If you are unable to manage your financial situation then guidance of a non-profit organization can be beneficial for you. The organizations provide assistance to low income or unemployed single mothers to eliminate their obligations and help them get back on the right financial track.

If you are managing your expenses sole on your income then it is advisable to compromise on your standard of living. If you are smart then life of a single mom is not tough.

Want to know about the real estate collapse, just ask pop star Beyoncé.   The singer just sold her Miami South Beach condo for a paltry $110,000.  According to a Miami Herald article (Beyoncé Takes a Bath on Beach Condo, Dec.15, 2011) she purchased the unit for $465,000 in 2002.  The sale underscores the depth of the real estate price decline particularly in sunny locales like Florida, Nevada, Arizona and California.

Houses and Condos selling at a fraction of recent purchase prices is becoming a common phenomenon across the nation.  From being “your greatest asset” homes have become the “biggest liability” for millions.  This turnaround has toppled net worth figures and jeopardized the financial futures of many families.

Is it time for you to consider relocating to an area with better job prospects?  Just like birds and animals migrate to locales with more favorable conditions so do people. Throughout history we’ve witnessed massive relocations of people due to war, climate, political and social conditions, etc.

Now we’re seeing a massive migration due to the Great Recession in the U.S.  A key demographic group, those aged 25 to 34 are moving by the thousands in search of better career prospects.  According to a recent analysis of Census data (as reported by Deborah Acosta, Miami Herald, 12/13/2011) the movement of young workers (especially those who are well-educated and skilled) has jumped in the 2008-2010 period.

The Brookings Institute ranked major cities into “gainers” and “losers” categories.  Top gainers were:  Denver, Houston, Dallas, Seattle, and Austin.  The biggest losers include:  Los Angeles, New York, Chicago, Detroit, and Miami.  There is an interactive map for all metro areas over 1 million available at the Miami herald.

The gainers share characteristics of technology growth and lifestyle advantages.  Most of the losers have high cost of living and disproportionately fewer jobs in growth industries.

It is important for the future of cities that they retain and attract the “best and brightest” upwardly mobile young adults.  However, as with everything some are better than others at doing this, and young people recognize the importance of getting a good start in their careers.  So they leave the areas with poor prospects and move to areas with better opportunities.  This can be a difficult decision, leaving family and friends.

However, it underscores the importance of perceived economic opportunity in making life decisions.  Like the depression dust-bowl migration westward, the 21^st century economic migration will have a lasting impact on the people involved as well as the areas they leave and those they decide to call home.

An interesting article in USA Today  reports wide variations in electric bills depending on where you live and the fifth straight year of overall increases above the inflation rate.  It is definitely wise to monitor your electricity consumption and make changes to reduce costs.  With the average household paying $1,419 a year the savings can be considerable.  You know the routine, now start doing it!

Here are some tips:

• Check your HVAC for efficiency – have a technician evaluate it for improvement or replacement
• Seek out energy saving devices and appliances
• Adjust your thermostat to minimize costs, if you have a programmable device set it so that it’s not cooling or heating an empty house while you’re at work
• Seal your house – especially windows and doors
• Install or upgrade insulation
• Clean filters save money
• Change incandescent light bulbs and replace them with fluorescent or other energy savers
• Consider using fans to assist in cooling or heating and improving comfort
• Unplug unused appliances whenever possible
• Familiarize yourself with utility usage plans and rebates
• Some states offer a choice of electric suppliers check it out
• Close blinds when it’s hot and open them to use solar energy to heat a room

Pay particular attention to the energy “hogs” like A/C, heating equipment, dishwashers, laundry washers and dryers, water heaters, refrigerators and stoves.  These appliances can break the bank on your utility bill.  Make sure you use them effectively (including full loads in washers with cold water settings, reasonable temperature settings on A/C and refrigerators, full dishwashers, reduced hot water thermostat settings or using new technologies, etc.)

There are many other ways to increase savings in this area, but it all begins with awareness, then examining options, and finally taking action.  Some changes are simple like turning out or replacing light bulbs while others like replacing appliances require a cost-benefit analysis.  Get started and good luck!

It’s a simple question:  Is it something you NEED or something you WANT?  Before you buy something ask yourself “Do I really NEED this?  In our society we often get confused about this.  We believe we really NEED a new car, HD tv, a new dress, or a trip to Las Vegas.  We may not even bother to question the validity of our assumptions.  But that’s an easy way to overspend and get into financial difficulties. What you REALLY NEED, in addition to a place to live and food to eat, is a cash reserve, savings and investments.

I realize that living in a survival or necessity mode may not be all that pleasant.  And I’m not saying you shouldn’t “splurge” once in a while.  You may want to surprise your wife, friends, or indulge yourself occasionally.  Just don’t make everyday a special occasion.  Otherwise “special” won’t mean much.

We may fall into thought patterns and practices that don’t serve our financial security well, and temptations abound. By using this simple technique we can make better financial decisions.  Remember to ask yourself:  “Do I really NEED this?”

Yes, it can feel like drowning, out in the ocean with the sharks (bankers, creditors, attorneys, etc.) circling, ready for the “kill.”  But it doesn’t have to be that way.  Look at the cover of my book.  There’s a lifesaver and a rescue boat in the picture too!

When it comes to a mortgage it’s an important, big ticket expense, with strong emotional components.  When financial difficulty strikes (e.g., loss of job, business failure, major illness) many people just stop paying.  And that may be their only option.  Either food on the table or gas in the car, or pay the mortgage, but you may not be able to do it all.

Join the crowd, millions of families are in the same boat, or perhaps the boat sank.  But there are alternatives.  Bankers may have a bad reputation, but they don’t want your home.  They already have too many, and besides that they’re in the banking business, not real estate management.  And federal agencies like Fannie Mae and Freddie Mac are there to help you too.  After all they own most of the mortgage loans, and like the banks, they want to protect their investments and curtail losses.

There are numerous options available to homeowners in mortgage trouble.  For a good overview visit: www.freddiemac.com/avoidforeclosure/alternatives_to_foreclosure.html

In this society we “live and die” by credit scores.  If we want to buy a house, get a credit card, purchase a vehicle, etc., our record of financial worthiness, responsibility or irresponsibility, success or failure can be accessed instantly.  And it’s about to get worse.  According to a New York Times article (Dec. 3, 2011, by Tara Siegel Bernard) a new CoreLogic system has been unveiled which offers far more detailed and intrusive credit related info.  The information will be supplied to the major credit bureaus on December 7, 2011.  The company formed a partnership with FICO and will be developing a new, much more detailed credit scoring methodology, expected to roll out in March, 2012.

Have You Ever?

Had a property tax lien, eviction, missed rental payment or child support judgment?  Ever applied for a PayDay loan, or been late on your Homeowners Association dues?  Ever got a mortgage from a small lender?  Are you “upside down” in your home mortgage to value ratio?  Have you ever fallen behind in paying your utilities?  Had a collection account?  All of this and more will now be included in your credit report and available to potential lenders/credit grantors.

Has It Gone Too Far?

Creditors know or can find out about your personal and household income, current and previous residences, employers, income and property taxes, family and marital status, location, lifestyle, spending habits, etc.  Has micro-monitoring of our daily activities gone too far?  Is too much information about our private lives available?  How tight are controls on misuse, accessibility, errors, etc.?  Have the “need to know” demands of creditors superseded our individual rights to freedom and privacy?  What do you think?

We’ve all heard plenty about the “too big to fail” banks, corporations and auto manufacturers.  Hundreds of billions were sent their way.  But what about the “little guy;” you and me?  Well, let’s face it, in the government’s priorities you may be too little to succeed!  Yes, that’s right; individually our problems are not big enough to command the attention of the bureaucrats.  And those pesky troublemakers the “occupiers,” are being blasted and neutralized across the land.  Besides that, if the police can’t disband them, the harsh Winter certainly will.

It’s a tough world and these are tough times.

So what do you do?  It’s about time you got tough and self-reliant.  Get in touch with that pioneer spirit.  It’s you against the elements.  You need to protect yourself and your family.  That’s a priority.  Start by living below your means.  Your government doesn’t set the best example for fiscal responsibility, and the more irresponsible we are the better they like it.  You’ve seen the headlines:  “Consumer Spending is Up,”  “Black Friday Shopping Breaks Records,”  “Cyber Monday Sees Huge Increase in Purchases,”  “Economy is Turning Around,”  “Unemployment Numbers Fall,” “Euro Bailout Plan,” etc.  Just in time for the holidays, everything’s coming up roses.  Don’t fall for it!

Your Plan.

I mentioned living below your means.  That’s a necessity.  Do you really care if everyone else is spending and going into debt?  Are you concerned that you might not have enough saved to handle a crisis or two?  Are you falling behind on your mortgage or other payments?

You need a plan.  Your plan should include the following:

• Living Below Your Means
• Building a Cash Reserve
• Resisting Credit Purchases
• Paying Down (preferably off) Your Debt
• Investing Your Money intelligently
• Increasing Your Income

Alert your family and enlist their cooperation.  Have regular meetings to monitor your progress.  Keep records.

 Get Involved!

 Don’t be passive, especially in your personal financial decisions.  If you need help with your mortgage, ask your lender what they can do.  Call your creditors and ask for interest rate reductions.  Patronize merchants offering fair, reasonable, value.  Help those less fortunate.  Some people are limited in their capacity to adapt:  the elderly, needy, disabled, the children, etc., —advocate for them.  Get involved politically.  Make your voice heard:  register to vote, write your representatives, etc.  It’s your country, your children’s future, and your personal financial survival that’s on the line.

Everything we do, or fail to do, has consequences.  And, when it comes to personal finances the consequences can be profound.  The end result of our actions can be either positive or negative.  With money many of us don’t think in terms of consequences, instead we think of immediate gratification.  We want something and we want it now!  If we don’t have the cash, we can always use credit.  Better now than later when it comes to purchases, because it may not be available next week, month, or year, or we presume it will cost more in the future.  Besides we’ll always have money and we can readjust our budget.

This type of thinking can get us in trouble

The mentality described above, and its corollary “we can always save later,” is dangerous.  I’ve know people who were at one point quite prosperous who are now living in a crummy apartment, or even in their car.  This may be extreme, but you can’t know the future.  You may not always have good health, a substantial income, a two wage-earner household, a nice home, good job, etc. Miscalculations, inadequate financial reserves, and poor planning can ruin your finances and jeopardize your future in an eyeblink.

Times are Less Predictable

You know it, and I know it.  Stability is not a word that describes our society and economy.  While you certainly may be a beneficiary of these volatile times, chances are you could end up on the “short end of the stick” just as easily.  Look at those who bought their home five years ago at the peak of the real estate market.  You wouldn’t have thought that home might be worth half of what you paid for it just a few years ago.  But that could be the case.  (And, on the other side, there are plenty of people snapping up bargain priced properties now.)

Your employment is probably significantly less secure than it was in the past.  And your benefits and retirement plans have probably deteriorated too. Your investments could be better, or worse off as a result of luck, timing, and market conditions.

Be Prepared

The Boy Scout motto has never been more apropos.  Being prepared today means having your finances at less risk.  Living below one’s means has not been fashionable for some time.  However, you need to start doing it.  You need to cut your expenses.  It is a good time to save for your future, have more cash, and be responsible.  “Cash Buyers” are getting the best deals on everything from real estate to automobiles.

General economic, business and social conditions are likely to get more volatile and chaotic.  This is not the time to indulge poor financial planning.  Get your finances in order, be ready for continuing unpredictable times, and improve your odds for positive consequences resulting from your efforts, restraint, and good planning.