Debt - The Four Letter Word

Debt — it's the four-letter word nobody wants to think about. I talk a lot about ways to reduce your debt or tackle it all together, but here are some tools for tracking it and avoiding it in the first place.

Spreadsheets

• The Money Management Template from Vertex42.com is a free alternative to Quicken. Plug in all of your expenses and income, and keep track of where your money goes. Once you have your budget in place, or if you're just looking for a fast way to track debts without worrying about the rest, you can use the Debt Reduction Calculator (great for using the snowball method for paying off debt) to focus on paying off your debts as quickly as possible.
• DebtTracker from “It's Your Money” is a simplified Excel spreadsheet that allows you to see a list of your debts all in one place.  You can then sort them by type of debt, interest rate, or current account balance.

Personal Finance Software

• Mint.com offers free personal finance software that will pull in information from all of your financial accounts (once you set it up). As a bonus, you can also access your information via a smartphone and set reminders for bill payments.

Smartphone Apps

• Pay Off Debt, an app for iPhone, iPad, or iPod Touch, gives users a quick and easy method for organizing and keeping track of their debt.
• DebtTracker Pro also uses the snowball system of paying off debt, but you can choose from other built-in payment strategies or come up with your own if you prefer.

Avoiding debt starts with strong financial traditions at home, but some high tech tools never hurt in the battle of the budget!

The mint makes it first; it’s up to you to make it last!
-Jainie-

Fighting Financial Crisis

Staying financially fit is all about smart budgeting, avoiding debt, and staying on the financial straight-and-narrow, but what do you do in the middle of a financial crisis? If you’re suffering from a financial fitness injury, here are some tips to a quick recovery: 

Have a Family Meeting

Financial problems affect the whole family. Unfortunately, most parents respond to the issue by attempting to shield their children from the realities of the financial challenges and end up panicking the kids with severe cut-backs without explanations. Make it clear that the responsibility to fix the problem lies with the adults in the household, but everyone can pitch in and help.

Ruthlessly Reduce Expenses

Start with the easy ones first — which fixed costs can be temporarily snipped, what expenses can be negotiated, and what can be eliminated entirely? Next, focus on just the essentials as you take a more granular look at the other expenses you can eliminate or reduce.

Creatively Boost Income

With the job market tight, look for new and innovative ways to boost your income. Part-time, seasonal, and temporary work might not be permanent solutions, but they can smooth out the rough edges in your budget. Think about your skills as marketable assets outside of your day job. How can you put them to use as a free agent?

What was your financial storm, and what methods did you use to make it through?

The mint makes it first; it’s up to you to make it Last

-Jainie-