Fred Harteis News Articles – Getting on the Right Financial Track

Fred Harteis News Articles – Here are some tips on how to conquer those oppressive debts and get on the right financial track.

Break Free of Debt
If you carry credit card balances, debt is your biggest financial oppressor. "You're in bondage of things you bought or did in the past that you're still paying for today," says Lynnette Khalfani, author of 'Zero Debt: The Ultimate Guide to Financial Freedom' "And it's costing you for tomorrow, because you don't have the opportunity to save or invest for your other financial goals."

The best strategy for paying off your debt is simple: Focus on paying off the card with the highest interest rate first, and never settle for making only the minimum payments. (You say you can't possibly squeeze any more dollars out of your budget? Consider this: A $5,000 balance on an 18% credit card would take nearly four years to pay off if you made a $150 monthly payment -- and would cost you $2,013 in interest. With $450 monthly payments, you'd wipe away your debt within 13 months and pay only $519 in interest.

Arm Yourself With Cash
A cash cushion -- enough to cover three- to six-months' worth of living expenses -- is your protection against falling into debt. "Without it, any time an emergency comes up you're forced to resort to plastic," Khalfani says.

Build a Fort
According to the Consumer Bankruptcy Project, the major reasons for bankruptcy filings are job loss and medical problems. The best way to protect yourself: Make sure you have adequate insurance. "Most people are woefully underinsured," Khalfani says. "The problem is, if you suffer any kind of setback, illness or disability and don't have enough insurance to cover that, you're thrown into financial crisis."

Devise a Budget Plan
Most people find it hard to stick to a budget. But this isn't the case with the money-management plan created by Elizabeth Warren, a professor of bankruptcy law at Harvard and her daughter Amelia Warren Tyagi, a financial consultant. Their formula, described in the book 'All Your Worth: The Ultimate Lifetime Money Plan,' is simple.

Your mortgage payments, insurance and food -- the so-called "must-haves" -- should comprise no more than 50% of your monthly spending. Then, allocate a solid 20% to savings for retirement, college costs and other long-term savings goals. Finally, leave a pleasing 30% for the fun stuff, be it golfing or clubbing, buying shoes or fine dining. Prof. Warren and Ms. Tyagi recently shared their advice on successful budgeting with SmartMoney.com.

Win Peace of Mind
It's a morbid subject no one likes to discuss, but the fact is that having a will is more important than you may think. "People have big misconceptions about why and who should create a will," Khalfani says. "A big one is that wills are only for people with big estates, elderly people, people who are married or have kids. All of those are myths."

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About Fred Harteis: Fred Harteis leads Harteis International. Fred Harteis has a background in agriculture and has created many successful business ventures.