Lilac City Momma

Budgeting

Budget Grocery Shopping Tips to Save Money

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Have you noticed how much of your overall budget you spend on groceries? Grocery shopping is a significant expense for most families and households, but there are ways to make it more affordable. Whether you’re saving to buy a house, put the kids through College, or just want some extra spending money… Here are few tips to avoid extra expenses on groceries:

  1. Shop on a full stomach. You’ll buy less snacks and/or things you don’t usually buy – and only buy groceries, not gifts and all the extra stuff, at the grocery store.
  2. Shop without the kids. Kids are kids, they will want everything in the store – presents, toys and sugary junk food that costs an arm and a leg. So, if you can, try shopping without small children throwing extra things into your cart 😉
  3. Make a list beforehand and follow it strictly. Specially while shopping with kids.
  4. Plan out what you will be eating in the week and get things accordingly. You can plan the kids lunches ahead of time and prep dinners in the crock pot! 
  5. Shop only once a week. You’ll tend to spend more if you stop at the store every day or several times a week.
  6. Shop when you have energy and aren’t worn out from a busy day. It’s easier to focus and make wise choices when you’ve got energy and aren’t preoccupied.
  7. Return your bottles and cans for the deposit that you paid. If you’ve got kids, get them to help with this job and let them keep the cash they earn.
  8. Shop in familiar stores when you’re tired, stressed or in a hurry. You’ll find what you need and be able to get out with what you need quickly.
  9. Plan meals so that you have leftovers for lunch the next day, or freeze leftovers for a quick meal another day.
  10. Package your own treats, juices and snacks. Buy the large package or snacks and a box of baggies and make your own individually wrapped packages to grab on the run.

These are few tips which can help you with your budget. 

When Is The Proper Time To Seek A Revocable Trust And Why?

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If you have wealth that you want to distribute to your loved ones, then you need to make sure that you plan ahead. There are a few options available to you based on your needs, but one that provides a few advantages is a revocable trust. Although there are several varieties of trusts out there, revocable trusts can be better for you and those you wish to provide for, depending on the situation. Today we’re going to discuss the ins and outs of revocable trusts, from how they work to whether or not you need to apply for an EIN online.

What is a Revocable Trust?

This is a type of trust whereby the grantor (the person creating it) can make changes and amendments as he or she sees fit. This kind of trust must be drafted when the grantor is still alive, as it becomes irrevocable after death. The name of this trust refers to the fact that the grantor can revoke the agreement at any time.

Why is this Trust Beneficial?

When figuring out the right way to disperse funds to family members and loved ones, a trust is a good option because it has strict rules about how it can operate. Also, it can pay out before your death, making it much more open-ended than a will.

A revocable trust is ideal for the following reasons:

  • If probate (proving validity of a trust or will) is going to be complicated or expensive
  • You can save money on federal estate taxes
  • Enables you to draft plans for disabled beneficiaries
  • Allows you to dictate when the trust pays out (i.e., when the trustee reaches a certain age)
  • You don’t have to disclose the details to the public
  • You can name yourself as the trustee if you like
  • You can ensure that your funds are managed correctly in case of death or disability to yourself
  • It provides long-term access to resources without legal or court interruption
  • The trust is protected if the grantor becomes incapacitated or dies

Overall, you should seek to create a revocable trust if you want more control over your money and how it’s distributed. For more information on these trusts as well as a church Tax ID number, visit www.irs-ein-tax-id.com.

How to Prepare Your Credit to Buy a Home

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Owning a home is the great American dream, but with bad credit, such a fantasy can seem more like a nightmare. Most conventional mortgage lenders will insist upon a credit score above 700 to secure a mortgage. Meanwhile, the FHA offers loans to individuals with scores as low as 540. A low score could require a higher down payment, a steeper monthly insurance rate, or result in declined funds.

If you’re worried about a low credit score standing between you and your dream home, take a look at these helpful tips on how to repair your credit and budgeting before applying for a mortgage.

Know Your Score

Every 12 months you are entitled to a free copy of your credit report. Equifax, Experian, and TransUnion are the three credit bureaus that offer access to this information. It is important to check each of these, as not all accounts report to the bureau. Keep in mind, you’ll want to make this inquiry atleast 6-9 months prior to applying for a mortgage. This will allow you to repair any issues and set aside time for the bureau to reflect those improvements. Late payments, bills that went to collection, and other derogatory items should be dealt with accordingly.

Make Amends

Scrutinize your credit report for errors. If the document fails to report paid bills or collections, you need to file a dispute as soon as possible. If you notice any unknown accounts or activity, you may be a victim of fraud or identity theft. If the resolved issues fail to make it onto your credit report in time, you can apply for a letter of goodwill from the credit institution. Such documentation lets your mortgage lender know the issues are outdated or resolved. Whatever you do, check your report at least once a year, as some issues have a statute of limitations.

Keep the Old

Good standing, older credit lines are a great asset. A long history of outstanding credit looks good to lenders. Plus, since closed credit cards remain on your credit report for up to a decade following the closure, eliminating a card you no longer use or with an imperfect account record isn’t going to work in your favor. Moreover, an available but unused credit card can improve your balance-to-limit ratio.

Optomise Your Balance-to-Limit Ratio

Your balance-to-limit ratio reflects what portion of your available credit you are utilizing. In most cases, lenders look for applicants who have a 15% or less ratio. If you can stretch your limits prior to applying for a mortgage, a 10% ratio is even better. Overall, lenders don’t want to see clients who are overextending themselves. At the same time, suddenly opening an extra line of credit to boost your current ratio isn’t going to work either. Each time you apply for a line of credit your report shows a hard inquiry. Too many of these and you’ll likely see your score drop.

Balance Your Debt-to-Income Ratio

Another important factor in approving your mortgage is your debt-to-income ratio. You want this number to be right around your balance-limit ratio. While it is tough to skew the numbers, reducing your spending and limiting large purchases will work in your favor. Use an online calculator to determine your ratio and then make a plan to chip away at your debts or reduce your annual spending. After you’ve purchased your home, this number will rise significantly. However, once you’ve secured a mortgage, you won’t have to play it as tight.

Make Wise Decisions

This last step is an obvious one, but still worth noting. Adulting isn’t always easy and it often means sacrificing a fun purchase for security or, in this case, a permanent home. If you’re ready to enter the world of homeownership, you probably already realize this. However, a hard look into your personal finances can be a healthy reminder to plan for the future. Moreover, you may want to seek the guidance of a professional financial advisor, who can help you to better organize your money.

In Conclusion

Securing a mortgage is imperative when it comes to purchasing your first home, but, for many, sub par credit can stand in the way. By taking the time to fix and maintain your credit history, you’ll be on the road to homeownership and a promising financial future.

Jessica Kane is a professional blogger who writes for Faxage a leading company that provides Internet fax service for individuals and businesses.

Tips on Back to School Shopping on a Budget

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When vacations are over, it’s that dreaded time of the year when your kids start bugging you for their back to school supplies. When we were young, all we needed was a bag pack, a book and a pencil. Today, a kid’s school supplies includes everything you can think of- pencil, eraser, sharpener, ruler, color pencils, markers, glue, paper clips, at least 3 binders in different colors, scissors, and the list goes on and on.

The problem with purchasing these back to school supplies is that they can be very expensive. Of course, before school starts, you will come across all kinds of sales that entice you to buy school supplies in bulk but not all of them are as good as they seem. This is the time you need to teach your kid the importance of budgeting or they will likely spend their allowance on things they don’t need.

Following are some tips that will help you shop under budget and save for the next year:

1. Make a List

No matter how appealing that sale looks, don’t go for it. If you want to shop under the budget then make a list of things that you “need” to buy. This way you can avoid buying things that your kid already has. Create a checklist and then proceed to the next step:

2. Start Your Shopping At Home

It’s time to go for a hunt – school supplies hunt! You have no idea how many rogue pencils, erasers, color pencils and other supplies you will find lying around in your house. Roam around and see. If you do find a handful of half-used supplies, then it’s time to do a little bit of recycling. Take out all the binders that you have in the house and see if you can tear some pages and make it as brand new.

Collect everything you find and cross the items from the checklist. Add the remaining items on the checklist that you missed and keep them in storage. Once you have an idea about what you need, you can now go shopping.

3. Shop in Office Supply Stores

School supply sales are quite deceiving. They can be expensive because you are forced to buy in bulk. To save money, shop instead in office supply stores, Costco or thrift stores that also sell in bulk, at a discounted price. You can find most of the school supplies here at fairly reasonable rates.

Say you are buying a simple binder in $0.50 and your kid insists that he wants the one with Captain America printed on it that costs $1.50. Instead of giving in to his demands, tell him to pay the extra $1 from his allowance. This way, not only will he learn to save, he will also understand that a generic binder serves the same purpose as a fancy one.

4. Go Online

While buying branded stationery can be quite expensive, you will find several coupon deals on Facebook and twitter when school returns. These deals are quite cheap and allow you to surprise your kid with new and high quality school supplies. The more loyal you are to these brands, the more chances you have of winning their gift coupons.

Kids can create quite a ruckus if their wants are not met. So, try these tips and you will be able to buy generic and branded school supplies, while staying in your budget.