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Paying Your Bills on Time for Millennials

Pay Bills on Time Millennials

Recent studies have indicated that millennials appear to have more difficulty paying their bills on time than previous generations. The reasons for this phenomena are debatable. Here are three tips that can make paying bills on time easier for millennials.

Tip #1: Millennials, Meet Auto-Pay

Auto-pay for bills can be anyone’s friend for building credit and making sure bills are paid on time. Millennials can especially benefit from this because it can be a way to guarantee their payment is consistent and automatic. The upfront time required for setup will be quickly rewarded. Each month a statement will still usually be mailed or emailed to assist in staying responsible by reviewing your account.

Tip #2: Always Monitor Your Accounts

Paying your bills on time for Millennials also requires close supervision of your finances. Millennials are especially notorious for not properly monitoring their bank accounts. Periodic monitoring of banking accounts is a necessity for ensuring that all bills are being properly paid. Make sure to both fully understand your finances and monitor your accounts on at least a weekly or bi-weekly basis. You can even use online interfaces with your bank to check your accounts on an even more frequent basis. Knowing your finances well, including your budget and savings levels will also prevent careless overspending. Do not allow your finances to become so “automatic” that you are you become unaware of your payment situation.

Tip #3: Emulate your Grandparents

Another perfect way for millennials to pay bills on time is to emulate your grandparents. Earlier generations who frequently are now grandparents are even great grandparents) used very simple and reliable ways for budgeting and paying their bills. These simple ways – such as earmarking cash in envelopes -are fundamentally solid and should be emulated. Although it is unlikely that most people would now choose to use cash in envelopes, this system of financial monitoring and attributing of funds is powerful. Such careful monitoring of funds will help dramatically with on-time bill payment. It will also teach the value of money. This can drastically change a person’s financial view and spending habits. Talk to older generations and gather their wisdom for use in your own life.

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Consequences of Long-Term Debt

Long Term Debt Consequences

Most people take mortgages, car loans, and credit cards as a necessary part of modern life. However, these debts usually stick around for the long-term. They are rarely ever resolved or fully paid. The consequences of long-term debt can be very severe.

You Will Pay 3-4 Times More or Greater

The first consequence of long-term debt is that it causes you to pay 3 to 4 times more for the object you are buying or greater. Four instance, take buying a home on a mortgage as an example. A modest home may sell for $100,000. People who pay their home with a 30 year mortgage will frequently pay 3 to 4 times this amount. They could end up paying $400,000 for the same property- sometimes even greater over time.

Imagine the difference of paying cash through careful investment. You could buy four homes for the same price. Then, you could rent out the other three and receive a hefty passive income each month. The consequence of long-term debt is staggering. Over the course of an entire lifetime, you could earn up to $1 million of passive income from the three paid-in-full rental properties.

You Will Never Learn About Finances

Another consequence of long-term debt is that it prevents you from learning about finances. This happens two ways. First, if all of your income is used on your personal expenses, you will never have the ability to learn from investing. The best school for investing is the school of hard knocks. You will never have this opportunity if all of your income is wasted by servicing debt.

The other consequence of long-term debt comes from it creating only “easy,” short-term options with finances. If you always take the easy way of obtaining what you desire through loans, you will never acquire a financial education. You will always take the easy, quick-fix instead of learning how to do things the right way over time.

You Will Never Gain Wealth or Build Net Worth

Another consequence of long-term debt is that it will usually prevent you from becoming wealthy or building a net worth. If your income goes primarily to service debt, you will not be able to save or invest very much money. In fact, you may end up finding yourself going into the negative instead of the positive. If you go to far into the negative, you may end up needing to file for bankruptcy.

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Finding a Financial Mentor

Financial Mentor

Finding a financial mentor is not the primary goal of most people’s lives. However, finding a financial mentor can drastically change how your life will play out. It can be a powerful start to reaching financial success.

You will Not Find a Financial Mentor in College or Trade School

Most schools groom you for your future professional job. Most trades and businesses teach you how to operate within their own business framework. You are trained to be a piece of a large business puzzle. You are plugged into this puzzle. None of this is necessarily bad in itself: just none of this actually teaches you anything about money.

A Financial Mentor Teaches About Money

Financial mentors, on the other hand, devote their entire time to teaching you about money. Finding a financial mentor is critical to discovering how money can work for you. Those who understand how money works control the flow of money. A financial mentor may actually teach you his or her particular trade, but the focus will always be more on teaching how to make money work for you.

Finding a Financial Mentor: Two Lives Compared

Imagine a woman who does not find a financial mentor. She is very dedicated and industrious. She chooses to go to a four-year college and comes out with a useful degree. She finds a good corporate position. She purchases a house on a mortgage. She goes to the car dealership to get a loan for a new car. After 6 years since high school, she now has a good paying job, little or no net worth, and little or no real financial education.

Imagine a young man with fewer opportunities who does not choose to go to college. The man instead becomes friends with a local wealthy, financially wise man whose family lives in a large home. After some work that they do together, the young man is offered to stay at the wealthy man’s guest house. In exchange, he must help take care of the property and assist the wealthy man with his business. He has now found the perfect financial mentor.

The young man begins to engage in the same business, diligently applying all the lessons he learns about money and investment. He even gets guidance and support from his financial mentor all the way. After the same six years, the young man has an expansive financial knowledge, a paid-in-full work vehicle, and multiple properties with a net worth of $550,000.

Conclusion: Financial Mentors – The Direct Route to Financial Success

So many people go through life with no financial mentor. Many times people go to college in hopes of higher education and financial opportunity. Other times people will engross themselves in learning a particular trade or business. Finding a financial mentor is a much more direct path to financial success. Your financial mentor has a much simpler focus: teaching you every way he or she knows how to be successful with money.

Read more articles on Financial Education here.

Living Debt Free

Living Debt Free

Living debt free requires a radical change of thinking more than anything else. It will require the full-scale rejection of things that most people now consider as normal and necessary, such as mortgages and car loans. How can you live debt free? Living debt free requires two things: a new mindset and bold action.

Living Debt Free: A New Mindset

Living debt-free requires a new mindset. The first part of this mindset change is the rejection of loan-based “short-term” solutions. For instance, the short term solution to when you need a new car is to go out and get a car loan. No planning or saving is required in this mindset. No financial knowledge or planning is also required. This also applies to mortgages: you desire a house and fix this situation quickly by applying for a mortgage.

This “quick” solution mentality must be fully rejected if you desire to live debt free. It’s a hard decision to make: most other people will be doing the opposite.

In addition, you must also adopt a mindset where you reduce your personal expenses as close to “zero” as possible. Without the ability to save and invest, living debt free is impossible.

Living Debt Free: It Takes Bold Action

Living debt free also requires bold action. This bold action may require selling everything you own. It may even require you filing for bankruptcy. You must avoid all other bad financial thinking around you that constantly claims that what you want to achieve is impossible. You must do whatever it takes to reduce your expenses to as close to “zero” as possible. You also must do whatever it takes to find the proper financial education that it will take to achieve your financial goals.

Living Debt Free is Possible

Living debt free is not only possible but it can also be very financially rewarding. Blind materialism can work against you especially if it prevents you actually from gaining real wealth. Sometimes doing the opposite of everyone else can be quite rewarding. Living debt free is a perfect example of this. You can have true peace and honest financial gains knowing that your financial state is based on humble realities instead of banking contracts.

Read more Indiana Bankruptcy Blogs by Indianapolis Bankruptcy Attorney John Bymaster

Valentine’s Day on a Budget

Image of roses to give loved one on a Valentine's Day Budget

Like most Americans, you may find yourself on a budget during the Valentine’s Day season. You either may not have the extra money to spend or you are being responsible by staying on your budget. Stay romantic and do not worry! Doing Valentine’s Day on a budget will make a memorable experience that will far exceed the trivial dinner out with flowers.

Do a “Budget” Picnic at Home

Doing a picnic from home can be the perfect way to make Valentine’s Day affordable on a budget. There is nothing more romantic and memorable than enjoying a dinner together that you also cooked together. I remember a gloomy, and snowy Valentine’s day where my wife was driving back from work. I surprised her with all of the ingredients for our dinner together, ready to go and laid out with candles. She was so relieved to see that we did not have to leave again to go back out into the cold for dinner. Even to this day, she said that the evening was one of her most memorable experiences.

Do Flowers on a Budget

One of the most enjoyable features of Valentine’s Day is giving your loved one beautiful flowers during an otherwise brown or icy time of the year. Doing flowers on a budget can be a much more genuine expression of love than a showering a mass of delivered flowers. Most people purchase expensive flowers and have them delivered or spend the time to present them in their home. What if instead, you personally or thoughtfully delivered them at work? The personal touch is always best and more endearing. The single rose more thoughtfully and genuinely delivered will far exceed the impact of several expensive bouquets.

Do Romantic Creativity on a Budget

We have all seen the most romantic of gestures carried out with little or no expense. Remember, any romantic gesture – whether a gift or experience to share – comes from your intimate and loving knowledge of the other person. It does not come from your pocketbook! For example, I once gave an illuminated scramble sign to my wife one year. It had a personal message that encourages her every day now over her desk. You need to find something that you can personally customize to make the gift or experience more memorable and endearing. Your spouse or loved one will genuinely appreciate the care and imagination that you put into your otherwise budget-compliant gift.

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