Friday, October 28, 2011

Family Budgeting Secrets - Three Top Tips You Must Know

Here are three easy tips to get you started. If you want to ensure that your success is guaranteed, it's worth taking a look. After all, if you've done the hard work to start, you really do want to succeed now, don't you!

Secret One

Because this is a vital step for you, your first family budgeting secret to success is to have a vision for what you want at the end of it. For some it might be that debt is eliminated real fast. For others it might be to save for a glorious family vacation later in the year.

It could be to set up a college fund for the future. Whatever it is, a clear and well understood goal, which is of interest to the whole family, really will focus you all to get going and to stick to the budget you have worked so hard to create.

For secret two, you have to get deep down and honest with yourself. This where it gets to be a little uncomfortable (though by doing this step, you will set yourself up for real and sustainable success in your budgeting).

This secret is about analyzing very clearly where you are spending your money. Don't give yourself a hard time - just be ruthlessly honest with yourself, to make sure that the starting line is a very good basepoint.

Remember, you will only make progress in your family budgeting if you behave how you mean to go on - so by letting yourself be fully truthful with the current situation, it will be onwards and upwards from now on for you - and your family.

Secret Three

We've found two hugely valuable secrets so far and the third one is even better! Taking full account of your spending will highlight the impact any debts you owe has on your budget as a whole. It can be quite a scary place to go - that black hole of realizing what debt is doing to you and your family.

Here's a special tip then.

As you see how much you are spending and notice opportunities to tighten up, put some of that saved money - however small, into reducing any debts you have. Pick the debts that are costing you most first of all and even if it is only a sliver you can spare, make sure you do - because it will give you the confidence to do even more. Making the difference where so many fail to.

It's as simple as 1-2-3. Steps you can take, one at a time, to progress the security and financial well-being of your family. Let's first enjoy that you have gotten this far at all - so many families just don't. The three steps are your route to successfully developing, with your family, the ways to the future financial success of your family.

And, ultimately of course, their happiness too.

No-one can make light of financial challenges. The view can look tough from where you sit now. It's time for action to change things if they have gotten stuck.

Monday, October 3, 2011

Financing College Studies With Home Equity

Home equity provides an incredible source of funds that can be good enough to finance college studies. With home equity loans you can get better loan terms due to the secured nature of these loans. Compared to unsecured student loans, they provide a much better source of funds and incredibly better loan conditions.

Home Equity Loans

Home equity is the difference between the value of the property guaranteeing a loan and the outstanding debt that the asset is already being used as collateral for. For instance: if you have a property with a market value of $100,000 and a mortgage guaranteed by it with an outstanding balance of $45,000, this means that there is still $55,000 worth of equity left on your home. And this amount can be used to guarantee another loan with a similarly low interest rate.

Home equity loans have the lowest rates on the loan market only matched by home loans and subsidized loans that can be a little lower. Also, they have other advantageous terms like higher loan amounts, longer repayment programs that can reach up to 15 years or more and resulting lower monthly payments that make these loan incredibly affordable.

Home Equity Loans For Financing College Studies

You may wonder: why use a home equity loan as a student loan? The answer is rather simple: Home equity loans constitute one of the cheapest sources of funds on the loan market and also provide high loan amounts compared to all kind of loans. There are of course more suitable loan instruments for this purpose like subsidized student loans or federal student loans. However, when qualification for these loans is not possible, home equity loans are an excellent alternative that can result less onerous than regular private student loans.

Moreover, these loans can also be the perfect complement for federal loans when federal loans can't provide enough money for financing all college expenses. Home equity loans provide higher loan amounts and thus can finance a whole career on their own. But if you get better loan terms on federal loans or private subsidized loans, you can supplement the funds provided by them with a small home equity loan so as to cover for any additional expenses.

Also, since these loans can provide longer repayment programs than the average student loan, you can thus obtain lower monthly payments that can make the loan repayment significantly more affordable. Moreover, parents can finance college studies and their children can afford the whole or part of the monthly payments with a part-time job without difficulties.

All these characteristics make home equity loans a good alternative when traditional financial sources for college studies are out of reach. Thus, they should be taken into consideration among the other options and pondered to see which alternative best suits your needs and budget.