This was mostly a result of last year’s VAT rise falling out of the annual inflation-rate figures, although the cost of most household goods, clothes and petrol has gone down.

A Better Return on Savings

As a result, savers can expect to earn more on their savings and those not currently saving are expected to at last see an incentive to start. Families with young children should at last feel encouraged to open up a junior ISA for their children.

Over the last four months, inflation has declined to 3.6% and the Retail Price Index (RPI) has seen a decrease to 3.9%. This means that basic rate tax payers must earn 4.51% on their savings to combat inflation, 40% rate taxpayers 6.01% and higher-rate taxpayers 7.21%.

Thinking about saving for your children’s future may now seem more realistic and opening a Junior ISA is a good way to start. The Junior ISA replaced the Child Trust Fund in November 2011 and any child who was not eligible for the Child Trust Fund can now have a Junior ISA opened up in their name.

Finding an Inflation Beating Savings Account The impact of falling inflation is such that there are currently five fixed-rate bond accounts that can beat the inflation rate for basic-rate taxpayers and 26 fixed-rate Individual Savings Accounts (ISAs).

It will be worth your while checking out which accounts are currently beating inflation and opening one up to start saving. Or if you already have a savings account, then do a quick comparison to see how your savings account stacks up against the rest. If yours is under performing, check your terms and conditions, as you may be able to do a transfer to an inflation-beating savings account.

After the last few years of economic gloom that has been much reported in the media, the lower inflation rates should help ease some of the pressure felt by the majority of households, although most do remain understandably cautious and particularly nervous about job insecurity.

Reports indicate that the average household debt has stabilised and there has been a drop in the number of people relying on credit cards or other unsecured debt. The signs had been there in January, with a somewhat unexpected rise of 0.9% in high-street and online spending.

This is coupled with a documented rise of 4.9% in cash savings in the last quarter of 2011. As well as encouraging saving, the falling rate of inflation should also mean less costly borrowing and even more incentive to spend as the year continues.

Instead, you’re going to have to really think about what the question means to you. For us, we believe that living well means having the bills paid and having a little bit extra in the bank to keep you afloat for the times that get rough. If you really look at a lot of real life stories of personal finance horror stories online, you’ll find that they have a common theme. That theme is going to be having too many bills and not enough savings. Yes, we know that it’s an oversimplification, but the truth is that the more you have in savings, the easier you will be able to deal with emergencies and other problems that come up.

For example, if you know that you want to have children in the future, it’s always a good idea to save money. No, we can’t always predict when children will arrive but we have to make sure that we really do as much as possible to make sure that everything is taken care of the way it needs to be taken care of.

Living well also means reaching the milestones on your financial blueprint. If you want a house, then you need to adjust your blueprint so that you can get that house. If you want a promotion at work, you’re going to probably have to increase your skills and value to the company in order to get promoted.

It’s just a matter of making sure that you continue to focus on your goals as they relate to what you feel constitutes a great life. The more work you put into your blueprint, the more that you’re actually going to get out of it. Good luck out there!

It’s not really a romantic topic, but it’s an important topic. If you are going to have children, then this is even more of an important topic than if you aren’t planning on bringing children into things. When you have another human being dependent on you to take care of them, things really do change. You have to give up a lot of the things that you knew in order to take care of them. That’s something that shouldn’t be ignored at all. You just need to make sure that you really keep your options open and really ensure that everything is being taken care of as much as possible.

Are you thinking about getting married? You might fear that your spouse to be is going to be a little taken aback if you just start thinking only about financial things. However, this is the highest gift that you can possibly give to your spouse to be. If you want to make sure that you have a good life, then talking about your finances just makes sense.

This is not a time to hide the numbers. If you’re in debt, then your spouse is going to find out anyway. So there’s really no reason to hide it from them at all. You just need to make sure that you really have the strength to push forward and let the other person know where you stand. If they’re really so turned off because you talked about a stable financial future, then they’re probably not going to be the type of person that you want to marry in the first place.

You need to design how your finances are going to look after you get married. Setting up accounts together as a couple is going to be important, but it’s also going to be important to really stop and hear what the other person has to say. You might think that you already have a good idea of what they think about things, but you could be totally surprised at what they really have in mind for you.

So you have to absolutely make sure that you’re thinking about the bigger picture at all times. How much do you both want to spend on the wedding? What is your budget for that? In addition, you will need to start thinking about the expenses that will come as a result of living together. You both might want to live in a better area, and you can pool your income together in order to make that happen. It’s just a matter of thinking about all of these things before you tie the knot.

Of course, you also need to think about end of life issues, which is a subject that no one really wants to talk about. However, it’s necessary. Putting together a will and thoughts about what you want done at the time of your death is also important. You just have to figure out what you want and then go for it — why not start today? You’ll be glad that you did!

Debt consolidation under fire

Of course there are, according to financial author Dave Ramsey. Ramsey has written an article which may well be the most outspoken and open criticism of debt consolidation to date and serves as a passionate counterpoint to the ideal picture painted by some in the debt advice industry. According to Ramsey:

„Debt consolidation is nothing more than a “con” because you think you’ve done something about the debt problem. The debt is still there, as are the habits that caused it – you just moved it! You can’t borrow your way out of debt. You can’t get out of a hole by digging out the bottom. True debt help is not quick or easy.“

Debt consolidation: How it works

Ramsey has a point. After all, debt consolidation doesn’t magically wipe away your debt. What it does is consolidate all of your loans into a single payment handled by a debt management agency (note that the agency doesn’t actually provide you with a loan, but merely takes care of communicating with your creditors on your behalf). The monthly payment resulting from debt consolidation will typically be lower than before, making it seem as though you have more money to spend. But in fact, the overall debt to be paid back may actually increase to compensate for the fact that it is now paid back over a longer period of time. Better not embark on that spending spree after all.

The benefits of debt consolidation

And yet, debt consolidation can be extremely beneficial in many other cases. The logic behind debt consolidation is that not everyone defaulting on their debt is incapable of paying them back. Rather, in some cases, the conditions of the loan are problematic. Which means that debt consolidation makes sense if it can help you restructure your loans to meet your financial capabilities, preventing you from going bankrupt. All which are good things in my book.

Get advice on debt consolidation

The truly essential thing is to get sound advice on whether or not debt consolidation makes sense in your particular case. There are a number of trustworthy debt advice agencies in the UK which are able to provide you with the information you need and to set up a debt consolidation deal for you.

There is an opportunity cost that is often measured in time. A lot of people find themselves doing tasks that really don’t get them to anywhere else that they would like to be. It just ends up taking a lot of time out of the things that they really want to do — and that’s a real shame.

You’re going to feel a little overwhelmed when it comes time to really deal with your finances. It’s better to make sure that you really start focusing on the bigger picture rather than always worrying about doing everything yourself.

For example, it might be in your best interest to get a credit negotiator on your side. These are people that are going to charge a fee in order to work with the creditors you have to deal with. They might also work with collection agencies in order to help you settle your debts. However, is it really worth it to you? Well, that depends on how knowledgeable you are on the subject to begin with. You just need to figure out how you actually want to get things done — there’s no reason to push forward on your own when you know that it would take forever to learn how to negotiate with the creditors yourself. On the other hand, if you’re a fast learner then this is something that you might feel comfortable with. It’s completely up to you of course.

Figuring out what’s worth your time and what isn’t worth your time will help you make better purchases a swell. Increasing the amount of time each week that you have available to work is going to earn you more money in the long run. That’s money that can be pushed towards paying on your debts faster. So as you can see, time management definitely makes a difference. In fact it’s one of the strongest skills that we can cultivate if you really want to make sure that you have plenty of time to move your financial agenda forward!

The best way to pay off debt depends on how you respond to the process of paying off the money in question. Some people like to start with the high interest cards, because they know that they’re paying less and less interest over time. They get satisfaction from knowing that the biggest debts that are hanging over their head are no longer there. You have to make sure that this is something that you’re going to respond to, because it can take longer than the other way to pay off debt.

The way that most people respond to best is where you pay the smallest cards off — even if they don’t have the high interest. The understanding is that you’ll become more and more motivated if you do it this way because it means that you aren’t going to be sitting there wondering if you’ll ever get any of your debts fully paid.

The way that works best is the one that you’re going to get excited the most by. We’re not going to lie to you — getting out of debt can take some time, especially if you have a lot of debt to take care of. Some people feel discouraged, but you shouldn’t give up just yet.

However, it also needs to be said that you might need to keep bankruptcy on the table. It’s something that people don’t like talking about, but it might be the best decision that you could actually make for yourself. It’s something that definitely hurts your credit for a few years, but you can get past bankruptcy.

You might want to also talk to a credit counselor that can help you go through your options. You should never feel like you have to go through the process of taking care of your debts on your own. There’s a lot of help out there that you really can tap into in order to move to a brighter financial future. It’s just a matter of really wanting to make those big changes in your life!

Realistic lines? What does that really mean? No problem — we’d be more than happy to explain all of this stuff to you so you have a better understanding of what we’re really trying to say. You see, if you’re trying to get out of debt, you might think an extreme approach — like cutting all of your fun expenses — is going to do it faster. And if we’re just looking at the numbers, this is definitely true — you will do a lot better with a fast blast of money at your debts than a slow blast. But that’s only the short term nature kicking in. most people really aren’t that disciplined to deal with watching all of the money that they’ve worked so hard to get be taken off to pay the bills. If you’re in this category, don’t worry — you’re actually in very good company.

You really don’t want to be that person that thinks that it’s impossible to get stuff done in terms of getting out of debt. What you really need to focus on is building something that works with your goals, not someone else’s. Just because you’re not going to be on the Extreme Cheapskate show anytime soon doesn’t mean that you can’t get out of debt. Some people feel just fine living on so little money, but if you know that there are some things that really do contribute to your overall quality of life, then you really need to make sure that you get them taken care of. That’s the best way to really make sure that you’re able to get out of debt in the long run.

It’s really going to be consistency that rules the entire day. The more work that you can put into being consistent with your debt reduction plan, the more results that you will eventually see.

For example, are you only thinking about the hard work? Try looking at what’s waiting for you around the corner. If you know that getting out of debt would allow you to travel more, then you might want to build a little posterboard with all of the goals that you ultimately have in the long run. That’s an excellent way to really make sure that you will eventually reach the goals that matter to you.

Life is too short to think that credit card debt should run your life. Keep it realistic in terms of your debt reduction plan and you’ll go far!

Going to look at your financial blueprint is powerful, though it might raise some new questions. For example, you might wonder if your education plans actually have any role in your financial blueprint. The answer is simple — yes, they definitely do!

Education can help you really change your financial life in many different ways. One, you might feel that you don’t have enough power to actually change your life. Studying a formal education can bring that power back into your life. In terms of concrete monies, getting an education can help you break into a higher paying field. This is the logic behind going back to school when you have a job that you don’t like that also doesn’t pay well. You should never feel like you can’t reach for a better life. You might have to work full time and go to school at the same time.

And if that’s going to be the case, why not make sure that you can focus on online classes? Online classes provide a good balance because you can work the classes around your work schedule.

Yes, this means that you might have to work a little harder than usual to keep everything running smoothly. But we think education really can unlock the keys to a better life. However, it’s about being strategic and really looking at which education paths are going to be the most profitable. It’s not all about “doing what you love” — what you love might not necessarily be as profitable as you think.

A lot of people go off to college with this idea, and then they find that they just can’t find any work in their chosen degree path. There’s nothing wrong with having hobbies and passions, but if you’re going back to college to change your life, you need to think about profit first and pleasure later. Talking with your college counselor is a good way to figure out what’s in demand, but you will want to do a little more research on your own.

Looking online for jobs in your area that require that degree path is a good idea. If you have networking events, you will want to go to them even if you haven’t finished your degree program. The more homework you can do on your own about profitable careers in your area, the easier it will be to actually push forward to the financial life that you deserve!

Of course, it’s important to remember that even when you do land a good job after college that you still need to look at your financial blueprint and update it as the time passes. You want to ensure that you’re still saving money, paying off your debts, and growing as a professional.

Perhaps a bit of explanation is actually needed. You see, so many people view life as a series of “befores” and “afters”, without really thinking about the “during”, or the sense of a never-ending journey. Personal finance is a journey that never ends. There are things that you learn that really make sense, and there are things that you learn that don’t fit your lifestyle at all. As you grow within your financial life, you will need to toss out the things that don’t fit your lifestyle, and keep the other components that do. This might prove more difficult that you think. There is a lot of pressure on people to get things right at all costs, even if it means that we don’t get to spend as much time as we like doing all of the thinking that we like. It’s just a matter of making sure that we can get from one point to another without losing our cool.

That’s actually where secured credit cards come in. So much of life after getting out of debt is restoring good habits. The best way to restore good financial sense and fix your credit is to go with secured credit cards. Instead of feeling like you have no options, these cards will help you reestablish your power. These cards will make it a lot easier to feel comfortable with the idea of credit cards. Some people think that secured credit cards aren’t fair, but this isn’t the case at all. On the contrary — credit cards can bring you a lot more power than you think because you will truly be able to understand your own spending.

Proving to lenders at large that you’re ready for credit again is very important. The more that you can show that you can pay your bills on time, the more likely it is that you will get credit in the future. Secured credit cards work just like the unsecured versions. You’re still going to have your information reported to the major credit bureaus, which means that eventually your credit will get better. The interest rates tend to be a little bit higher, but you’re also in a different category of risk than when you didn’t have credit problems at all. Indeed, when you had a bright and shiny new credit history, it was like you could do no wrong. Now that you’ve gone through some credit challenges, you’re going to have to prove your creditworthiness all over again.

This is the part that people really don’t like, because it means that they have to really start all over again. They have to go from step one and really prove that they can handle higher amounts of credit. Nobody starts out with a massive credit line unless you can actually put down that type of money. The more work that you put into your credit, the more likely it is that you will get a great deal out of it. Otherwise, you’ll just be going through the motions and nothing will ever get done. So, are you ready to move forward? Great!

We recommend going with a very small secured credit card either from a major credit card company, or a credit union. There are traditional banks that offer secured credit cards, but they tend to charge a great deal of interest. You will need to really weigh whether or not it’s worth it. There are also annual fees to consider, and when you get your credit card your first year’s annual fees will most likely be on the card itself. You will need to pay those before your next due date.

Let’s not forget that you will need to ensure that you focus on getting your utilization under control. This refers to the amount of credit charged against the total amount of credit that you have. A lot of people, now that they’re out of debt, have a high tendency to charge up all of their cards again. They think that they will be able to handle that type of lifestyle now, but that’s often not the case at all. This is only something that’s going to have you moving backwards. For the first few months it might be wise to charge only the amount of money that you can pay off by the next due date. If you can do that, then you will keep your utilization in line. Remember that utilization only refers to what the card balance shows by the end of the billing / reporting cycle. If you pay off your entire balance every month, you’ll have a very low utilization percentage, if you have any at all. Some people like to leave about 10% left instead of paying off the entire balance, just to make sure that they aren’t missing any potential score boosts due to proper utilization handling.

We want to make sure that you can move forwards towards a brighter financial future — make sure that you work on that before anything else! Good luck out there!

Now is the best time to absolutely make sure that you’re keeping to a certain plan. Some of the best health boosters are actually free –going out and getting some fresh air and sunshine helps. Even in the winter months there are still times where the sun is out. The more sunlight that you can get, the easier it will be to keep depression at bay.

Walking the dog if you have one to walk is a great activity that will keep you feeling refreshed and ready to take on just about anything that life throws at you.

Don’t forget the diet issue. Going with a lot of processed food isn’t just unhealthy, it’s expensive. Most of the processed food is charged to you at a premium. So you need to make sure that you’re cutting this out of your diet if you really want to get healthy and keep your costs down. This might mean that you have to learn how to cook. No worries, this is the information age — you can easily look up great recipes online.

The more information you pull in about building a healthy lifestyle, the more balanced you will become over time. The trouble that most people run into is that they think that they have to learn about all of this stuff right from the very beginning. That’s a good way to stress yourself out! Stress can really pack on the pounds as your body tries to deal with what it feels is a “threat” to you. Make sure that you keep the stress down and everything else will click into place over time — you’ll see!

The final point that we would have to make is that you might want to join a neighborhood “club” that splits the costs of items that everyone uses. This is also a good way to save money on the health-oriented products that you know that you need. Going online and looking up recycling groups that find good homes for products that everyone needs is an equally good idea.

Don’t stress yourself out about it — it is possible to have a healthy life on a smaller budget. It’s just going to take a little more work!