On a budget? Still over-spending? Trying to figure out the best way to organize your finances and spend wisely?

You Need a Simple System
I found out that Grandma's way to handle money still works. People used to always use cash envelopes to control their monthly spending, but very few do in today's card swiping culture. The envelope system is a key component of the Total Money Makeover Plan because it works. Here are a few simple rules for starting a cash envelope system.

1. Budget each paycheck. Budget is a dirty word to most people, but you must budget down to the last dime if you're going to successfully implement the envelope system.


2. Divide and conquer. Of course, there will be budget items that you cannot include in your envelope system, like bills paid by check or automatic withdraw. However, you can create categories like food, gas, clothing and entertainment.


3. Fill 'er Up. After you've categorized your cash expenses, fill each envelope with the money allotted for it in your budget. For example, if you allow $100 for clothing, put $100 in cash in your clothing envelope for the month.


4. When it's gone, it's gone. Once you've spent all the money in a given envelope, you're done spending for that category. If you go on a shopping spree and spend the $100 in your clothing envelope, you can't spend any more on clothes until you budget for that category again. That means no visits to the ATM to withdraw more money!


5. Don't be tempted. While debit cards can't get you directly into debt, if used carelessly, they can cause you to over-spend. There's something psychological about spending cash that hurts more than swiping a piece of plastic. If spending cash whenever possible can become a habit, you'll be less likely to over-spend or buy on impulse.


6. Give it time. It will take a few months to perfect your envelope system. Don't give up after a month or two if it's not clicking. You'll get the hang of it and see how beneficial the envelope system is as you dump debt, build wealth, and achieve financial peace! See....simple!

Certainly, some bills may come in at different times of the month, so you'll need to adjust your written game plan to take it one step further. You need to plan the budget based upon your pay periods.

Say that you get paid twice a month. If you can write down which bills you plan on paying from each paycheck, you will not be left with a surprise bill. Spend each month's income and each individual paycheck on paper BEFORE it comes in.

Have Some Fun
I also have no problem with you adding an envelope with money just to "blow." As long as you and your spouse have agreed on it, you are fine. There should be no lying. Agree on your budget, agree on your blow money, and be open. Blow money can be anything you want it to be. There are no rules on that envelope, unlike money in the "entertainment" envelope that is used specifically for entertainment.

Get the Envelope System - Deluxe / Designer

To paraphrase the old saying, who you know can be just as important as what you know. You may be skilled at some trade and be able to do it well, but jobs may be hard to come by.

In fact, it's well documented that the want ads in your local newspaper only represent about 15% of available jobs. If you go to an employment agency, that number isn't much different. Around 80% of positions that become available are never advertised, because they are filled before they need to be. So how do you find those jobs? You find them by building a network.

The Benefits of Networking
Networking involves meeting people who work in the career that you want to get into. These are the people who know about the unadvertised positions available with a company. By getting to know them (as they get to know you) and then asking every so often if work is available, your chances of finding a job increase dramatically, for a few reasons.

For one, if you are the only person who knows about a job, and the potential employer knows you are qualified and persistent in asking about it, they may not even bother to advertise it, so you won't have to compete for the job with other applicants. Also, your chances of getting a response from the company are better since they know you. When jobs are advertised in the paper, many times the employer asks applicants not to call. However, if a boss knows you and is expecting your call, he/she will be more willing to talk to you and discuss employment.

Next Steps
If you are interested in a particular field of work, start meeting people in that field. For example, if you want to get into a job writing for the local newspaper, call or go by their headquarters and introduce yourself. Ask to take someone who works there out to lunch and get to know them. Find out the best way to get involved in that career and stay in touch with that person. Ask if you may contact them periodically to learn if there is a position open with that company. The better you get to know someone, and the more persistent (not nagging) you are, the more likely they will let you know when something becomes available.

Don't just pick one business or organization and network with them. Shop around and make contacts with several companies. One place may not have an opening, but the competitor down the street may be looking for someone.

Once you land the job, you know what to do next. Work hard, make a budget and save money, save money and save more money. Good luck!


Related:

• Be Happy at Work
• Setting Goals That Work
• How to Get out of Debt
• New to Dave? Get started here

"It's critical that you make the right decision about who will handle what is probably the single largest financial investment you will ever make."

Not all real estate agents are the same. If you decide to seek the help of an agent when selling or buying your home, you need some good information before you make any moves. Below are some specific questions you should ask to ensure that you get the best representation for your needs. Some agents may prefer that you don't ask these questions, because the knowledge you'll gain from their honest answers will give you a very good idea about what outcome you can expect from using this agent. Let's face it - in real estate, as in life - not all things are created equal.

Hiring a real estate agent is just like any hiring process - with you on the boss's side of the desk. It's critical that you make the right decision about who will handle what is probably the single largest financial investment you will ever make.

1. What makes you different? Why should I list my home with you?
   It's a much tougher real estate market than it was a decade ago. What unique marketing plans and programs does this agent have in place to make sure that your home stands out favorably versus other competing homes? What things does this agent offer you that others don't to help you sell your home in the least amount of time with the least amount of hassle and for the most amount of money?


2. What is your company's track record and reputation in the market place?
   It may seem like everywhere you look, real estate agents are boasting about being number one for this or that, or quoting you the number of homes they've sold. If you're like many homeowners, you've probably become immune to much of this information. After all, you ask, "Why should I care about how many homes one agent sold over another? The only thing I care about is whether they can sell my home quickly for the most amount of money."Well, because you want your home sold fast and for top dollar, you should be asking the agents you interview how many homes they have sold. I'm sure you will agree that success in real estate is selling homes. If one agent is selling a lot of homes where another is selling only a handful, ask yourself why this might be. What things are these two agents doing differently?You may be surprised to know that many agents sell fewer than 10 homes a year. This volume makes it difficult for them to do full impact marketing on your home, because they can't raise the money it takes to afford the advertising and special programs to give your home a high profile. Also, at this low level, they probably can't afford to hire an assistant, which means that they're running around trying to do all the components of the job themselves, which means service may suffer.


3. What are your marketing plans for my home?
   How much money does this agent spend in advertising the homes s/he lists versus the other agents you are interviewing? In what media avenues does this agent advertise? What does s/he know about the effectiveness of one medium over the other?


4. What has your company sold in my area?
   Agents should bring you a complete listing of both their own and other comparable sales in your area.


5. Does your broker control your advertising or do you?
   If your agent is not in control of their own advertising, then your home will be competing for advertising space not only with this agent's other listings, but also with the listings of every other agent in the brokerage.

5 more questions to ask

Find an agent in your neighborhood I recommend

Evaluate each agent's responses to these 10 questions carefully and objectively.Who will do the best job for you? These questions will help you decide.

Let parents bequeath to their children not riches, but the spirit of reverence.
- Plato

Plato said it well. Parents are not just responsible for providing food, clothing, and shelter for their kids. They are also responsible for teaching their kids about life…and life includes handling money.

When it comes to kids and money, the three most common questions I get are:

• When should I start teaching my kids about money?
• Should I give my kids an allowance?
• When should my kids go to work?

Teach kids about money as young as pre-school age and no later than third grade. Just think about it: if your kids can grasp this money stuff early on, they'll avoid many of the pitfalls latter. After all, it's better for little Billy to make a $10 mistake than a $10,000 mistake!

1. The first thing you can do is start paying them a commission for chores they do around the house. Typically, one dollar per completed chore is sufficient with a list of five or six chores each week. Remember that each child is going to respond differently. Just keep evaluating your child's maturity level and make sure their chores are age-appropriate. Check out Financial Peace Junior
   
   


2. The second thing you can do is NOT give them an allowance. After all, what are you making an allowance for? You don't want to have the kind of kids who think money grows on trees, do you? Don't set them up for frustration and unrealistic expectations. And don't miss out on the teachable moments that come when you give them a commission instead of an allowance.
   
   
   
3. The last thing you can do when teaching your kids about money is send them off to work. "Child abuse" is letting a kid sit in front of a TV all day playing video games and eating junk food. Kids need to understand what a little dirt under the fingernails means. Delivering newpapers, mowing lawns, or working at a concession stand are some appropriate jobs they can handle.

Guiding your children in the choices they make with money is HUGE! The lessons you teach them as they earn money and learn to spend, save, and give will lay an influential foundation for their lives. Remember, if you don't teach your kids how to handle money, someone else will.

Related:

• The Truth About Teens and Credit Cards
• Why should we teach our kids about money (cont)
• Dave products for kids

The answer might surprise you.

When you understand this concept, all the other concepts work, and until you implement it, none of them will work. When you stick to this concept deep in your soul, it becomes easy to save money and even have money to invest. Getting out of debt happens quickly once you learn how to apply this concept in your life. Budgeting is made easier, and your marriage and relationships regarding money are freed up and made smooth.

Contentment. That's right, contentment.

Contentment brings peace, not apathy. Not the deadhead fog of Prozac or Valium. Only contentment brings peace. We live in the most marketed-to society, and the very essence of marketing is to disturb your peace. We say things to ourselves like, "I'll be happy when I get that house;" or "I'll be happy when I get that job." Or, or, or, or!

NOT TRUE. Happiness is sold to us as an event or a thing, and consequently, our finances have suffered. Fun can be bought, not happiness.

We live among a bunch of people who are deeply in debt and have no money saved because their emotions were tricked. You probably think I'm writing about someone else, but I'm not. I am writing about you. I know because I suffer from the same disease of "stuffitis" - but I am recovering and so are many of you. The human spirit was not created to attain peace, contentment, or fulfillment by gathering more stuff.

You can get out of debt, save money, and get on a budget, but until your intellect forces your emotions and your spirit to accept that stuff does not equal contentment, your money will always feel stressed. It's time to change your focus and your life for the better!

Related:

• Don't Have a Clinched Fist
• Get Started Giving!
• Four Lessons the Wealthy Can Teach You
• New to Dave?

A little bit more for those of you who crave the real estate tips...
The most common way a home is given an approximate value is a Comparative Market Analysis (CMA).

Most real estate agents will do a CMA as a free service for any prospective client. The CMA is determined by pulling comparable properties in your general area that have sold in the past 4-6 months. The properties are assessed for selling price, time on the market, improvements, square footage, and other variations that are then used to give an approximate value of your home.

Because real estate markets change rapidly, a CMA can be out of date in a few months in some markets. It is always important to have a current CMA when considering the sell of your home.

CMAs, while based on data, are still very subjective. When looking at comparable properties it may be hard to account for things such as curb appeal, desirability of the home's architectural style, etc. This is where the agent's experience can help you.

It is VITAL that you first find a good agent, and second, that you take their advice when they give you an estimated value on your home. Agents are not emotionally or personally attached to your home. You, as the owner and occupier of the home for years, are most certainly! If you watched your kids grow up in the home, celebrated birthdays there, had family gatherings, and painted the walls bird-egg blue 10 years ago, you definitely have value in this home that cannot be expressed in dollars. That value, while priceless to you, has no worth to a prospective buyer. That is why YOU should never attempt to price your own home. Let someone who has no attachment to your property take on this task. That is, unless you want the home to sit and languish on the market for much longer than necessary.

Related:

• What Is My Home Worth?
• How Much House Can You Afford?
• How to Avoid Buyer's Remorse
• I need an agent I can trust!
• New to Dave?

My web team has recently been working diligently to enhance My Money Tools, an easy and cool way for you to keep track of your budget online. The team finished a fabulous item that is all set for you to use! If you aren't familiar at all with My Money Tools, here's a quick rundown of what you can do with this program:

• Add expenses as they come in. When you buy gasoline, eat out, or buy gifts for others, you'll be able to enter that item individually in your budget so you have a better idea of what you bought and when.
• Your budget categories are as flexible as you need them to be.
• Create multiple budgets and archive them.
• Be walked step by step through setting up a budget with the super-fast Budget Wizard. It will keep track of your information as you enter it so you know how much money you have left for the month.

Making a money plan has never been this easy! It's all part of our commitment to giving you the best experience you can have as part of our My Total Money Makeover community! Sign up now for a 7-day free trial!

A collector's job is not to help your overall situation. They are out to get your money only – whatever it takes. Credit card collectors are NOT your friends. Think I'm lying?

One day Connie in Nashville called me on the radio. She was 3 months behind on her credit card payments and being threatened by some collectors. They said they were going to take her house away if she didn't pay her debt off immediately.

Well, I'm here to tell you that these collectors are SCUM! They lie and break federal law on a daily basis. I've worked in this business for 17 years, and I've never seen a credit card company sue someone or garnish the wages of someone who is 3 months behind on payments. If they are going to take a lien against your house or other action, they have to sue you first, win, and get a judgment against you. They don't do that to people who are 3 months behind. It's a total bluff by some idiot in a cubicle 500 miles away.

Listen to the call from Connie and read the rest of this post

Ridiculous Collector Stories
What is the Fair Debt Collection Practices Act?

Use the Baby Steps to get your money in order and on track. Then pass them on to someone you know and help change their life!

• $1,000 to start an Emergency Fund
• Pay off all debt using the Debt Snowball
• Three to six months of expenses in savings
• Invest 15% of household income into Roth IRAs and pre-tax retirement
• College funding for children
• Pay off home early
• Build wealth and give!

Printable version of the Baby Steps to put on your fridge, in your office, or to pass out to all your friends and family.

These principles are taught and discussed in depth in Financial Peace University. Find out more.

Debt collectors are bad news. Maybe the only thing worse than a collector is a creditor who's mean and nasty.

But there is something even worse than that - a creditor who is mean, nasty and trying to get you to pay a debt that is not even yours!

It's becoming an increasingly larger problem that collections agencies are after people to pay phantom bills, even though those people never owed a dime. Here's an example: The Federal Trade Commission states that as much as 80% of the debt being collected by Capital Acquisitions and Management (now out of business) was made to people who never owed the debt in the first place. WOW!

Collection agencies get the wrong people all the time, but don't listen to their bluffs; you are not liable for debt in any way if you never spent the money. If you actually owe money, get on a written plan and pay it off using the debt snowball. Just remember that these people lie and break federal law on a daily basis to get their money, so if you don't owe, don't let them bully you into paying.

That being said, it's important to be vigilant about checking your credit report for a few reasons. Obviously, you want it to be accurate, but if people are calling you and telling you to pay up, you might be a victim of identity theft. Someone might be running up debt in your name. Make sure to pull your credit report once a year and make sure it's accurate.

Don't let it sneak up on you. One man was called by a New York agency on a debt that he didn't owe, but he ended up paying it because he was trying to get a loan and the $394 phantom debt showed up on his credit report. He paid it off because he was in a hurry to get the loan. The point is not that you should get a loan (you shouldn't); it simply means that letting phantom debt go for too long will cause you to make bad decisions because you feel pressure.

If you are being harassed over phantom debt, send the agency a certified letter, return receipt requested, stating that the debt isn't yours and for them to stop calling you. If they persist, you can file a complaint with the FTC or your state's attorney general office.

Here is a fact sheet prepared by the Privacy Rights Clearinghouse for more information on what your rights are regarding collections agencies.

Source: MSNmoney.com

Collectors Are SCUM!
Questions About Your Money?