The following is a guest post contributed by Liz Goldman for Wonga.com – the UK payday loans alternative.

If your finances were out of shape in 2011then this is the year to improve your financial health. Finally the time is here to reduce your credit card bills, slash your mortgage and make sure your savings are sweating interest.

Here is a 2012 personal finance health checklist to ensure your finances run smoothly.

1. Keep Your Vehicle in Good Condition

Taking good care of your car can mean savings of hundreds or even thousands of dollars from maintenance and insurance premiums. Regular servicing of your car’s key parts ensures fewer accidents which in turn leads to lower premiums. You will also save on costly repairs and potentially having to buy a new vehicle, too.

2. A Safe Home

There is an easy way to lower your home insurance costs that is not known to many – just install alarms, window bolts and secure locks and you will probably be offered better home insurance rates.

Do regular safety checks on smoke detectors, locks, wiring and plumbing to avoid costly accidents.

3. Buy Online

You can get some great deals online, so shop regularly at online stores to save money. Items such as books, DVDs, electronics and jewellery can all be bought for less. You will also save on gas and the temptation of eating out. Look for free shipping offers and use price comparison sites for the best possible deal.

4. Improve your Credit Score

Mortgages, credit cards, and personal loans are expensive financial products we all rely on, so improve your credit score and save money with lower rates of interest. Pay bills on time, ensure your credit file is correct and clear any debts. Checking your credit file regularly is a good idea to help remove any errors and get good deals.

5. Identify potential pinch points and plan ahead

It is important to plan ahead to those times in the year when you know finances are likely to be tight – for example birthdays, vacations, weddings and so on. A short-term solution to help improve your finances in these situations might be to use a payday loan provider or to ask a friend to help out.

6. Tax

Make sure you are paying the correct rate of tax and be sure to write off any tax deductible expenses. Contact a professional if you are unsure about any aspect or need assistance with paperwork. Maybe you are paying more taxes than needed and you don’t even know it!

7. Control your “Wants”

It is important to identify your “wants” (things you want to have like a new TV, holiday, Playstation 3) and your actual “needs” (essentials such as food, shelter and clothing). Embrace your finances with a clear and open mind, identify what you really need and budget for any “wants”. If you are finding it hard to be disciplined, open a savings account that can’t be easily accessed and transfer a small amount each month. Pick an expense that you don’t need like going out, and put that money into the account. You’d be amazed how fast it adds up.

8. Don’t Keep Up with the Joneses

Don’t bother trying to impress people by leasing a sports car or buying the latest gizmo. Few people will actually notice. Save the money instead and use what you already have. Remember to bear this Ethel Barrett quote in mind: “We would worry less about what others think of us if we realized how seldom they do.”

9. Savings

Regularly check your savings account against competitor’s interest rates to make sure you are getting the best deal. Research online and use financial product comparison sites to help you. Carefully check your saving account’s terms and conditions for any withdrawal penalties if you choose to switch or close it down.

Saving money can sometimes feel like an uphill battle. One minute you have a steady savings routine and then the next, life happens, bringing you back to empty pockets. This scenario can happen to the best of us, only building up frustration and anxiety.

Much like any chore, saving takes a lot of discipline and calls for some form of pattern in your day-to-day. Whether it is a New Years resolution or diet, we start off strong and eventually dwindle down into old habits and shopping sprees.

For some people, it appears adding money to the piggy bank is second nature. So while you’re struggling to set a saving precedent, your pals are free of debt and on the fast track to buying a new home, and you sit there asking yourself, “Where did I go wrong?”

Crash saving, much like crash dieting, can be hazardous to your health and your wallet, experts say. Whether you are cutting food or money, certain savers will cut back so much they are allowing themselves to live a life of misery.

“Monotony and boredom can easily niggle away at the best intentions of any extreme saver and drive them back to their old spending habits, in the same way that a fad dieter will go back to eating their favourite treats with a vengeance,” writes John Suter in a post for Life Optimizer.

Forcing yourself to eat the cheapest foods or calling it an early night in hopes of saving extra cash can be tiring, leading to a negative and exhausting approach to saving money.

According to Suter, one can find relief in financial balance by taking your monthly budget and cutting back on areas of high expenditure. For example, only going out a few nights a week, rather than every weekend, or replacing expensive dinners with something less stressful on your wallet.

“By balancing your savings against your spending, you do not then deprive yourself completely, making it much easier to continue saving in the long-term,” Suter writes.

I for one am no master of savings, but I’ve managed to come across a few techniques of my own to make holding onto your money a little easier.

Here are a few quick tips on saving money:

Create a budget

Look at your bank statements and see where all your money is going. Once you’ve pinpointed your high expenses, moderately cut excess spending from your monthly budget.

Stay organized

Keep track of your daily debt and credit card use.

Out of sight out of mind

Open a completely different bank account for your savings to limit temptations and money transfers.
I know these three steps may sound like a broken record, but I find them to be positive lifestyle changes that can at times go unnoticed.
So chin up, it may be tough at first but once you have a routine going and find balance, your uphill battle will turn into a walk in the park.

About the Author: This is a guest post by Phil Wilcox who writes on behalf of ClearDebt.co.uk – they provide advice on personal insolvency and getting an IVA.

When you’re measuring your financial progress, most of you may think that you could just be richer if you could make more money per month. But have you ever though whether making more money is enough to make you richer?

One of the most controversial debates that are currently going on in the world of personal finances is what constitutes rich. Most people agree that the place they live at makes a big difference in whether or not you feel that you’re rich. Standard of living is the most important thing that determines your richness. Becoming debt free in a place where the standard of living is high is much more difficult than paying off debts in a low profile place.

Making more money does not translate into having the money to spend on whatever you want.

What are the expenses that drain off your wealth?

It is worth noting that there are some particular expenses that drain away wealth, no matter how much money you make each month. Staying educated on these spheres will help you avoid such expenses so that you can maintain a wealthy life.

1. Your house or car

Most people in America turn out to be house poor. They decide to get a big house and then terribly struggle to make both ends meet. If you have not been modest while purchasing your home and you had stupidly bought a home beyond your affordability, you must have been suffering lately. Since the financial crash, it has been surveyed that most homeowner’s monthly housing costs comprise of half of their monthly income. The same theory goes for a dear car for whose insurance you cannot arrange money.

2. Your unsecured debts

Your unsecured debts are a big expense for you. What can be more unfortunate than having unsecured debt obligations and paying interest rates to someone else instead of using that money to invest for your future? There are instances of people who make more than $150,000 per year but are saddled with unsecured credit card debt and feel themselves to be nothing but poor creatures who are failing to make both ends meet.

Monetary resolutions to set your foot on a wealthy life?

After some studies have been made among the affluent, it has been derives that planning, perseverance, dedication, hard work and self-discipline is what it takes to be a wealthy man. Here are some monetary resolutions that must be taken by every individual in order to build wealth and take a plunge into the life of a millionaire.

1. Live below your means

Don’t be fooled by the average lifestyle of a millionaire. The keyword to living a life of a true millionaire in the near future is ‘frugal’. Most financial experts believe that leading a frugal life is the secret of saving for your future. The typical Americans are known for working hard, making money and then spending it well. You must change this spending habit and make sure that you stop buying unnecessary things that you can do without.

2. Evaluate the importance of saving each dollar

When you put in your efforts in saving money, you can soon understand how spending $10 and $30 dollar makes a huge difference. You must always remember that money has the ability to work in your place and therefore, the more you employ it, the faster it will grow with time. Try to save money at every step of life and enjoy leading a frugal life so that you can soon get the results you desire.

3. Become proficient as an investor

In order to boost your savings and build wealth, you can try becoming a proficient investor. Investment is one of the best ways to make money and also boost your savings by controlling them. Get to know about the investment market so that you can understand the fluctuations and take good control over your investments. Also make sure that you manage a balanced portfolio that will help you gain maximum profits with minimum risks.

As you might think that there’s nothing wrong with spending money on things that seem to be important to you, you must reconsider your decision. The actual concept of being ‘rich’ is being able to spend money for what you need now, save money for your future and spend a little in purchasing things that you like. Lead a debt free life and boost your income so that you reach one step closer to becoming a millionaire.

Last year has been both good and bad in respect to the financial status of the world and the people. But according to reports the economic condition of the United States of America and personal finance of the people are in bad shape. The debt is said to have increased to around $3 trillion. More and more people are applying for credit card debt relief programs. However, financial experts agree that the economy is starting to look up. Thus, it will be better if you try your best to solve your debt problems. In relation to this you will have to take some financial resolutions for this year.

Financial resolutions for 2011

Though the economy is said to be looking up, it has not yet recovered totally from the economic downturn. Moreover, the cost of living is getting higher day by day. According to market watchers 2011 may cost you more than the previous years. Thus, it is better to take some financial resolutions so that your finance stays in shape. Here are some of the financial resolutions for 2011:

1.  Maximize your savings

Savings is essential to your finances. Thus, it will be better if you take the resolution to increase your savings. In the process of saving more you will have to cut down on your expenses. This will help you to avoid getting into credit card debt. You may also practice frugal living to save more than usual.

2. Keep a check on your credit and debit card usage

You should also keep a check on your credit card and debit card usage. Maintain a list of the bills or better take a print out of the account balance after every usage. This will act as an eye-opener to your spending habits. You may even think of changing your expending habits thereby helping yourself to achieve credit card debt relief.

3. Reduce the cost of common things

You will have to first formulate a proper budget in order to do this. A well formed budget can help you to decide on the items which you require the most. Then you may also be able to decide how you can reduce the cost of that particular item or items. For example, if you are buying gasoline for your bike or car quite often, you can try to reduce the costs of buying it. One way through which you can save money on gasoline is by buying it early in the morning or in the evening.

4. Change your spending habits

The only real way to stop your debt problems is to change your spending habits. This makes you a financially strong person and thus your credit remains in good shape. One of the most critical things to stop is impulse buying.

5. Hold yourself accountable

Include accountability strategy in your finances – When you are accountable to someone, you tend to improve on your responsibility characteristics. So, you can try to find out a person with whom you can discuss your finances and also be accountable too. This will help you a lot to become more sensible on your purchases and money spending habits.

6. Stay informed

You should also stay informed on the changes in the financial market – the change in rates or popularity of credit cards, mortgages or even simple everyday items. There have been various changes in the mortgage and credit card rules too and there are some changes to come in 2011.

If you are able to take these resolutions and strictly follow them, you will be able to maintain a good financial status. Thus, you may not even need to go to any credit card debt relief companies for help. This can in fact save considerable amount of money.

A few weeks ago I was lucky enough to be presented a possibility to compose my own personal finance seminar by one of Estonia’s local training companies.

I jumped at the opportunity -  putting together my own training session in personal finance is something I have always wanted to do but never got around to! It’s obvious that a chance like this has got to be destiny (although I believe in making my own destiny)

The whole coaching program needs to be 7 hours long and to date I have only put together a fraction but I already feel that there are some things that I have learned from the opportunity!

You appear different to others than to yourself

Some of you might be familiar with the concept that  every person actually has 3 different “self-images”. There is a way that you see yourself, a second way how other people see you and a third way that represents who you actually are.

In order to have a genuine impression on others, it is important to try and make the gap between how others perceive you and how you see yourself minimal. If the gap is too large people won’t simply believe what you say.

When you talk to an audience about how to get rich but your appearance is that of a homeless man, then it doesn’t really matter anymore if what you say is true – people will not believe you because how you seem to them and what you are talking about contradict each other.

The same thing can happen in a number of ways. For example when you talk about manners but you are constantly cursing – what you are trying to get across and who you are will contradict each other resulting in the fact that no one will take you seriously.

You need to take care that how you say something is consistent with what you say.

Sometimes people don’t understand what you are trying to say

A few days ago when I tried presenting the first part of the personal finance coaching program that I am trying to put together I got some feedback that I was rather surprised to get. I thought that I had only briefly talked about the way I tried to save money by buying cheap food when I got started in personal finance but it later turned out that my test audience had the impression that one of my main points was that in order to get rich you have to be so frugal that you will be unable to enjoy your life. In fact – if you remember one of my previous posts I believe exactly the opposite – Some things are too good to give up.

Body language and the tone of voice are super important

According to research done by UCLA professor Albert Mehrabian the way we communicate our message to other consists of the following:

7% - words

38% – tone of voice

55% – body language

It’s a good bet that everyone knows a teacher or a lecturer who was extremely boring to listen. Chances are that it was because the lecturer was sitting or standing still and talking in a monotonous voice. Doing that will only get 7% of your message across to your audience. When you start using your body as well – you are already communicating 62% of your message. To see an example how excellent body language can help you get what you want - see my post about former US president Lyndon Johnson.

To appear confident – you need to know what you are talking about

The first few times I practiced presenting the seminar  with my friend Jaak, I appeared very unconfident to him. The reason?

While I knew what I was talking about I didn’t know the exact sentences and the order in which to say them. This resulted in too long pauses between my thoughts and me jumping back and forth on different subjects. After rehearsing a couple of times I already knew pretty much what to say when and that made me feel more confident. Your audience will sense whether you’re confident in your topic and if you are not you will lose all credibility!

The best way to get confident? Practice.

As you see below – even president Obama likes to take a moment to prepare for his speeches!

Putting together a consistent program is difficult

For me it is quite easy to write an article or two about something here on Financial Jesus. A typical post is about 1 certain thing and therefore there are no problems on defining where it starts or where it ends.

When putting together a consistent coaching program you need to think about the order of subtopics you will talk about. It is important to start from the basics and move up to the ones that are more complex. After all – you need to read before you can write your own novels.

Getting the correct order of things wrong means that a lot of people will not understand a large part about what you told them. And that of course – means failure

For more updates about how I’m doing with preparing my own personal finance coaching program – sign up to my full feed RSS or subscribe via email.

This is a guest post by Matt from Pizza For A Dream

Insanity – doing the same thing over and over again and expecting different results

Today’s focus, most specifically, is on financial insanity and 8 ways to avoid it in your life. Are you financially insane? As the economy continues to crater, do you find yourself doing the same things that you’ve always been doing and expecting things to work out differently than they always have?

1. Read, Read, Read

I’m grateful to several mentors that have stressed the importance of continuing education! The education I’m referring to may not be the formal kind that might come to your mind, though. I’m talking about self-directed education through your local library or through the purchase of books on topics that will improve your lot in life. Most believe that formal schooling is the end of education, while it’s actually only the beginning!

Do you lack knowledge in a new skill or trade? Pick up some books and educate yourself! With focused study anyone can become an expert on any topic!

For example, some books I’m currently reading to eliminate financial insanity in my household include:

• The Backyard Vegetable Factory – A book about backyard gardening

• Basic Economics – Explains our economy and the basic principles that make it work

• The 5000 Year Leap – The history and founding principles of the United States

• Lone Star Rising: The Revolutionary Birth of the Texas Republic – History of Texas

• The 4-Hour Workweek – How to manage your time and design a desirable lifestyle Like me, you should have a specific purpose in mind for the books you read and know how each will help eliminate insanity in your household.

2. Eliminate Waste In Your Budget

Over time we all tend to get looser in our budgets and have numerous expenses that we continue to pay even though they’re no longer important to us. Cut these expenses and put yourself in a much better financial situation. Here is a list of several changes we’ve made to our household budget over the past few months:

• Cut cable TV to save money and have more time for the family.

• Signed up for an unlimited long-distance plan with our phone company. We found this would actually decrease our bills after we analyzed our calling history.

• Canceled monthly TiVo subscription.

• Eliminated collision insurance coverage as our vehicles aren’t worth enough to warrant this coverage any more.

• Stopped eating out as much during the day while on the road.

• Canceled the subscription to the radio talk show “Extreme Club”.

• Started shopping smarter. My wife spends time scouring the grocery circulars to ensure we get as many things as possible on sale during our large grocery trips. She also uses coupons where they make sense.

While all of these personal examples may not apply in your household, we all have places we can cut back.

3. Increase Your Income – Get a Second Job

Swallow your pride and add another income through a second job. This will provide both added security and an additional income in the event you lose your full-time job (see my post Why Pizza For A Dream for the reason why I began delivering pizza as a “white collar” professional). My 12 hours a week (3 nights) pizza delivery job offers nearly $1000 extra a month which makes a huge difference for us!

4. Best Time To Start Saving Was Yesterday

Less than 5% of Americans have savings accounts – start by making sure you’re part of this 5%! Setup an automatic withdrawal from your paycheck, so that you never miss the money. Begin with a simple $1000 emergency fund and grow from there – you’ll never have to use credit for emergencies again once this is built up. Over time you won’t ever have to use credit for anything! You don’t need to worry about your credit rating if you have cash!

5. Start (or Increase) Giving

Though it may seem counter intuitive, the more you give the more you will receive. Take your eyes off yourself and make a difference in the lives of those less fortunate around you. The Bible and many other books cover this principle in much more detail than I ever could, so use them as your guide.

6. No Car Payments! Pay Cash for Used Cars

Your new car loses thousands of dollars in value the minute you drive it off the lot. Eliminate being stuck with this depreciation cost by purchasing cars that are at least 4 years old and let someone else pay that new car depreciation. Also, begin to pay cash for your vehicles and drive them into the ground! Your car will last a lot longer than you think! Our 2 cars (’98 Honda Accord and ’97 Taurus) have 260,000 and 210,000 miles on them respectively. We typically spend around $1000 a year for repairs (emergency fund) which amounts to a lot less annually than monthly car payments! We won’t replace either of our cars with the van that our family needs until we’ve got the cash to do it. It’s called the “one payment plan” and it is much better than the plans the dealers offer!

7. Start a Business

There’s no better way to take control of your future than by building something that you own! My job security becomes less and less of a concern as my business grows! How would you like to be the one who signs the checks on the front instead of signing them on the back? Aside from the income, there are tons of tax advantages that you’re missing out on if not running a business. The government created the tax law for business owners, not the employees.

8. No More Debt

The borrower is a slave to the lender. Strive to get out of debt in the next couple of years and completely change your financial future! A great program for help in this process is Dave Ramsey’s Financial Peace University. His program provides a simple and systematic approach to financial peace and independence. Liked what you read? Don’t hesitate to sign up for our free email updates or subscribe to our RSS feed.

The rule of 72 is an easy and necessary rule for investors and ordinary people alike who wish to know how long will it take for their investment to double.

In order to get to know how long will it take for your investment to double you need to take the interest rate of your investment and divide 72 with it.

For example if the money in your bank account generates 6% interest per year you need to make the fallowing calculation:

72/6= 12 years

This means that when you invest 1000 dollars with an annual interest rate of 6%, it will take 12 years for it to grow to $2000.

The average annual return for the stockmarket in the US has been 12% per annum. Using the 72 rule we get that investing your money with this rate will take (72/12% = 6) 6 years to double.

Current inflation in the US is about 4% a year. By using the 72 rule we get that (72/4=18) it takes 18 years for your money to lose half of its value. Your $100 will buy 50 dollars worth in 18 years.

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