The Importance of an Annual Budget

One way to plan your budget is to complete an annual budget. This is a great strategy because it allows you to plan and save for the expenses that come once or twice a year, which can often break a normal budget. It is fairly easy to switch to an annual budget if you already have a monthly budget in place. If you do not have a budget in place, then you will need to sit down and figure out how much you spend on each budget category during each month or over the course of the year and average … Continue reading

The Importance of Saving for a Down Payment

If you have ever dreamed of home ownership then you must have thought about the dreaded down payment. It is recommended by most people to save between ten and twenty percent of the home’s cost for a down payment. This can be a large amount of money depending on the type of home that you buy. If you were to buy a moderately priced house of $150,000, this means that you would need to save between $15,000 and $30,000 for your home. There are many other options available to new homebuyers these days. Many mortgage companies are willing to let … Continue reading

Cancel Your PMI to Save Hundreds

We received an awesome late Christmas gift in the mail today. It was a letter informing us that our PMI (Private Mortgage Insurance) has been canceled. PMI insurance is insurance on the mortgage that is for the good of only the bank. It covers them in the case you default on your loan. If you are not putting 20% down on your home when you purchase it, you will need to pay this insurance that amounts an average of $67 per $100,000.00. We are still not sure as to why the bank spontaneously canceled our PMI as this is rare. … Continue reading

Budgeting a Large Purchase

Want a new big screen television to ring in the New Year? I don’t blame you; they are certainly all the rage. Plus, those after Christmas sales can be a way to save money on big ticket items. Still, no matter how good the sale, these sorts of purchases can’t come out of our normal miscellaneous expenses in our budget. The key is to find a way to buy what we want without disrupting our cash flow. There are three main ways to budget for a larger purchase, like a car or fancy television. Find the one that works best … Continue reading

Share Your Money Dreams

What are some of your money dreams? I asked around and came up with this list… feel free to add some of your own! The ability to quit work and stay home with your kids. Believe it or not, both men and women wish for this dream. Some men want it for their family; others want it for them too. Having one parent home can save money on childcare and make everyone’s life less frantic, but it is also tough to lose one whole income. To buy your first home or condo. Often coming up with the financial means to … Continue reading

Do You Have Extra Paychecks?

How often are you paid? If you are paid biweekly then you actually receive twenty-six paychecks a year. If you create your monthly budget on two paychecks a month, you receive two extra paychecks a year. If you are paid weekly you will receive fifty-two. However if you can create your monthly budget on four paychecks a month then you will have four extra paychecks a year. These extra paychecks can really be used to your advantage. If you do not include them in your budget then it is extra money that you can use however you wish. Here are … Continue reading