Chicago Bankruptcy Lawyer Blog

Some folks don't save because they think they can't afford to, but many more have another excuse - they don't want to go without. A dollar saved is a dollar you can't spend, right?

But that's not true. A good savings plan isn't about not spending - it's about earning. I'm talking about interest. Whether you stow your cash in a savings account, a 401k, a CD, government bonds or the stock market, you're (hopefully) going to earn a certain level of return. Think about it this way: if you can spend more of your money this year investing in your future - and less paying off debt - you can go from forking over interest to earning interest.

Of course, first you'll have to tackle that annoying debt and come up with a savings plan that's right for you, as we discussed on Tuesday and Thursday. Then comes the fun part - making more money.

Continue reading "Get The Most From Your Savings With Interest" »

Saving money often presents a problem. You know you need to start saving, but you can spare so little thanks to your debt, you figure why even bother.

Well, I'm going to let you in on a secret: every little bit counts. It's better to save one dollar than to save no dollars at all. And if that one dollar is what it takes to get the ball rolling on your fresh financial start, then it's worth a lot more than its paper value.

Most folks tell themselves saving would be easier if they just made a little more money. But chances are when you finally get that much-needed raise, you'll quickly find other uses - and excuses - for your cash. However, if you can set aside just a couple bucks each month starting now, you'll kickstart a habit that can last you a lifetime, no matter how much you get in your paychecks.

Continue reading "Change Your Financial Mindset to Start Saving Money" »

Cooler weather isn't the only thing to celebrate about autumn. As usual, lower gas prices have arrived with the crisper air. For the first time in two months, the average price of gas dropped to below $2.50, the Associated Press has reported.

That's about 20 cents less than during the summer and 60 cents less than a year ago - and hopefully prices will continue to fall. Now, you might be wondering what the big deal is about holding onto a couple extra bucks. I realize it's not enough to pay the bills. But it's enough to get me motivated about saving.

Let's say lower gas prices save you $20 a month - and you don't even have to do anything! Now let's see where else you can scrounge up some savings. Let's say you ditch that gym membership, get rid of your land line (you probably rely mostly on your cell anyway, right?) or stop smoking. Any of these three could save you upwards of $40-50 each month (not to mention kicking a cigarette habit, if you have one, will save you health care costs in the future). And these are just a few examples.

Continue reading "Lower Gas Prices Can Be One Step Towards Debt Relief" »

One of the biggest myths about bankruptcy is that it's an easy way out.

Getting out of debt is not a piece of cake, no matter which way you slice it. What sets bankruptcy apart from other debt relief methods is that it truly works. In order to do so, however, it requires dedication, a solid plan and time.

But that's not what some debt relief companies out there will tell you. They'll tell you what they think you want to hear - that they can eliminate your debts virtually overnight, that they'll negotiate with creditors for you, that they can work some kind of miracle. That's because they want to take advantage of your desperation to take your money. Whereas most of us view the recession as a tragedy, scam artists see a golden opportunity - and they seem to populate as times get tougher. In a study by New York's attorney general, four-fifths of online bankruptcy companies turned out to be scams.

It's alarming, but it shouldn't discourage you from getting the help you need to finally achieve financial independence.

Continue reading "Be Wary of Scams When Considering Bankruptcy" »

Even though it's been a while since the end of summer meant back to school, I still find myself intrigued by the new clothes, backpacks and books on store shelves.

It's not so much the stuff - since I don't have kids yet, I'm not planning a back-to-school shopping spree - but the feeling I get when summer winds down and fall is just around the bend. It makes me feel like finally getting organized - like this is my chance to start fresh.

And with the economy struggling to recovery, this year might be the perfect time to reflect and reorganize. For instance, have you been putting off starting a budget? Maybe this is the time to do it. Consider taking a look at your expenditures so far this year and brainstorm ways to cut back if necessary. Maybe devise some new saving methods. For instance, I'm still having luck with the $5 bill plan. Every time I get a five back with my change, I keep it. When it reaches $30 or so, I deposit it into my savings account. Not only am I spending less, but there's less incentive to use a credit card because no cash means no change.

Continue reading "Chicago Community Workshops Are One More Way to Learn About Finances" »