Happy New Year! All around the world people celebrate New Years in different ways. Some take to the streets to celebrate while others celebrate at home with family and friends. Some cultures have traditions that they do such as eating grapes at midnight or wearing yellow underwear. Below is a list of popular New Years traditions involving money and prosperity.
- Throwing coins on the sidewalk supposedly will bring you financial luck in the New Year.
- Holiday cash in your hand at midnight will bring you financial success in the upcoming years.
- Don’t pay loans or loan anything of value on New Year’s Day because it will guarantee you will be paying all year.
- Stocking up your cupboards and place plenty of money in wallets to ensure a prosperous new year.
- Pay off debt before January 1st so you can start the New Year with a clean slate.
How lifestyle changes can improve your bottom line
Another year comes to an end and many of you are starting to think about 2012. Perhaps you may try to come up with resolutions like getting out of debt, quitting smoking or losing weight. Every year approximately 45% of American adults will make 1 or more resolution. However within 6 months almost half of those resolutions were abandoned.
There are many reasons why these resolutions fail including unrealistic goals, not having a plan in place goals that are too broad and no accountability. According to some experts, resolutions are about taking something away, leaving a person feeling deprived. By accentuating the positive you change the whole mindset. Instead of making a resolution, make a commitment to change in the New Year.
Whether it is looking better, feeling better or breaking the cycle of debt you need to look at what are the underlying cause of the problem and address it first. By breaking habits such as shopping when you are depressed, not taking account small daily purchases and stop impulsive spending you will be headed in the right direction.
Another issue is that consumers are often too optimistic about potential earnings. For example, relying on a tax refund, future raises or selling future annuity payments to pay for items later can be dangerous to your finances. If you do not get the amount of money you need to pay off your purchases you leave yourself open to huge interest rates or penalties.
So maybe you decided you want to make a change but you’re not sure how to get started. The best way to start is to define what you want to accomplish and make a plan. Make sure you develop obtainable, measurable goals and develop rewards for when you accomplish your goals. Below are some suggestions on how to get started.
- Define your financial goal. Whether it is to become debt free by 2013, create an emergency fund or go back to school put it in writing.
- Determine what is holding you back from accomplishing those goals. Is your spending getting in the way of your dreams, perhaps you are not sure.
- Create a spending diary to see where your money is going. Track every purchase you make no matter how small it is. Identify places you can make small changes that can really add up.
- Create a budget and stick to it. Don’t forget to save money too. It will help you avoid the debt roller coaster when emergencies happen.
- Reward yourself. Give yourself little treats that won’t derail you when you hit milestones.
- Don’t let setbacks derail you. If you have a setback, don’t quit trying to obtain your goal. Just regroup and move on.
- Change your relationship with money. Avoid triggers like shopping your way out of a better mood and spending mindlessly by developing better habits such as exercising when you’re depressed or leaving your credit cards at home.
- Get organized. Late fees and penalties waste money and they are damaging to your credit score. Develop a system that works for you and pay your bills on time.
- Get professional help. Sometimes you are in over your head. Perhaps you need professional credit counseling or financial advisors who can help you develop a system that works for you.
- Keep your options open. Sometimes your financial situation requires a more drastic approach such as selling some of your future annuity payments to avoid foreclosure or to pay off high interest debt. Remember to research all your options and don’t make hasty decisions.
If you have periodic payments from a structured settlement annuity, a divorce settlement, a single premium immediate annuity, life insurance policy, inheritance, royalties, or even a pension and you want to know more about selling some your future payments, call Rescue Capital at 866.688.3532. With today’s lower rates, your future payments could be worth more than ever before.
Traditionally, marriage has been a big business in this country with the average wedding costing almost $28,000, according to theknot.com. That’s a lot of money to spend on just one day but many couples are still having expensive weddings just the same. Although marriage rates have been declining in recent years, the wedding industry will soon be making a comeback in New York State where it is estimated that over the next 3 years 63,000 same sex marriages will be performed. While there are some huge benefits to this legislation there could be costs that were not considered.
Let’s say hypothetically the average gay wedding was more affordable and only cost $14,000 that comes to $882,000,000 of additional revenue for New York businesses. If gay weddings stay closer to the national average that could be $1,764,000,000 in revenue. That’s definitely a boost to New York’s economy. Obviously it is great way to create jobs. Unfortunately, it is also going to create more debt for some couples as they finance their dream wedding or honeymoon with credit cards or personal loans. Although some couples may choose this route, others may opt to save for their big day or sell a portion of their future annuity payments for cash.
As many heterosexual couples can attest to, sometimes things just don’t work out as planned. For a small percentage of married couples the inevitable separation/divorce happens. Unless you have a cohabitation agreement, no children or pets and your finances are separate, divorce can be expensive. The average divorce can cost as much as $10,000 so don’t be surprised if you start seeing attorneys who specialize in “gay divorce” in the near future. Despite the fact that there are divorce funding companies for couples with significant divorce settlements, it might make sense for couples to save 6 months worth of family income or be prepared to liquidate their assets.
While most expenses in gay marriage or divorce will fall upon the couple, New York State may not have considered their additional expenses. With more weddings or divorces there will be more paperwork as well as more court hearings. Although the additional paperwork and court proceedings have fees, they will have to hire additional people to handle it all. While again job creation is good for the economy, towns and cities will have to provide these employees with competitive pay and benefits during a time when most government offices are having furlongs or layoffs.
While gay marriage and divorce may fuel New York’s economy, taking on additional debt to pay for it all is not the answer. As couples race to alter, they should considering making a budget for their wedding as well as their future together. Unsecured personal loans, credit cards and divorce financing companies charge a great deal of interest. If you have assets like an annuity, royalty, pension or life insurance payments you might want to look at the rates charged by factoring companies. Their rates tend to be more competitive than banks and you don’t have to pay the money back like a traditional loan. With any major financial decision whether you’re selling an asset, accumulating debt or getting married you should measure the pros and cons of your decision as well as discuss it with your trusted advisors.
Dear Rescue Capital,
About two years ago I won a sexual harassment case against my former employer. I received a settlement paid out over 20 years. Unfortunately, I have not been able to find a work and I used all my savings while awaiting for my case to be settled. I could really use some cash to get back on my feet and pay my bills. Do you purchase these types of settlements?
Still looking for work
The short answer: Yes, we can purchase many forms of annuities, even structured settlement annuity payments that don’t fall within the definition of personal physical injuries under IRC 104(a) such as age discrimination, ADA violations, race discrimination, wrongful termination, worker's compensation and sexual harassment. To get a better idea of who much your future payments may be worth, call us at 866.688.3532 for a free no-obligation quote.
Have a question about selling your future payments? Send it to email@example.com