Simple trick to save money and live like a rock star

Rock star

OK maybe you won’t be living like a rock star but it’s a start…

For many people in the United States, trying to save money is a difficult task. With a range of household bills to deal with coupled with accommodation costs, food, travel costs, and other essential expenses, there is little leeway for those who are keen to save some money. However, without any savings put aside people often find themselves in difficult situations in the event of a financial emergency such as unexpected bills and repairs.

However, officials have said that there are ways in which people can boost their chances of being able to save money even if they feel that there is little or no flexibility in their budget to make savings. One expert said that there were various little methods that could help households to save more money each month and that even putting aside small amounts of money could prove invaluable as they can quickly add up.

Some of the methods to consider

According to one recent report, there are a number of simple and effective ways in which households can save small amounts of money. One of the methods was to try and save just 50 cents per day in a jar or bottle – leftover change from making a purchase for example. By doing this for one year, a person can save $180 dollars, which is a nice little addition to any savings account and in many cases the person doesn’t miss 50 cents per day.

Another recommended course of action is for people to stop wasting money on cans of soda, drinks from coffee shops, and shop bought lunches when going to work. Instead, take a packed lunch and a bottle of water that can be refilled at home or work. This can save the average person a small fortune each week and also means that you can be healthier as you know exactly what is going into your sandwiches and meals.

One thing that many experts recommend to those who need to start saving some money is to look at how much they are paying out on things such as insurance coverage, utilities, and other regular monthly costs. In many cases, people end up paying way over the odds when they could get a better deal elsewhere. Using comparison sites makes it easy for those who want to switch to better deals and this could equate to significant savings each month for those who are paying more than they need to.   

Consumer agency to propose payday loan rule in Kansas City

Kansas City

Since the Consumer Financial Protection Bureau (CFPB) announced that it was working to establish a federal regulatory framework for the payday loan industry, consumers, politicians and businesses have been waiting anxiously to find out what exactly will happen. Well, now everyone will find out.

On June 2 at 10 a.m., the CFPB will propose a new rule to limit payday loan lending. This will help produce the very first federal regulation for the payday loan industry that will be instituted by all states. The new rule would cover not just payday loans that come with 300 percent interest rates, it’ll also cover installment loans and auto title loans.

CFPB officials say that auto-title loans have become more of a pressing issue in recent years. The federal organization notes that 20 percent of auto title loan borrowers have their vehicles seized for failing to repay debt. Moreover, a majority of auto title loan revenues stem from perpetually indebted consumers.

It’s quite apparent that the CFPB is certainly putting forward sweeping regulations.

The consumer watchdog agency confirmed Wednesday that it will host an event in Kansas City, Missouri. The event will see representatives from consumer organizations and the payday loan industry as well as public officials discuss short-term lending. This is where the new proposal would be unveiled.

According to the CFPB, the event will be open to the general public at the convention center in the downtown core, but you will need to reserve a seat online. This may be the first hearing of many so if you miss this one you could catch another one.

With 18 states prohibiting payday loans, one consumer advocate thinks this is a great opportunity for decision in Kansas, rest of the state and the entire country.

“We can bring reform not just to Missouri and not just to Kansas, but across the country,” said John Miller, an attorney and representative from the Communities Creating Opportunity to fight predatory lending practices, in an interview with a local news affiliate. “And if we can be a major part of that, we would love that opportunity.”

You can bet one person will be front and center of the hearings in Kansas City next month.

Elliot Clark has first-hand experience with website that offer the best payday loans. Clark, who says there are more payday loan stores in Missouri than McDonld’s, Starbucks and Wal-Mart stores, wants more regulations on the industry. Failing to receive a loan from his financial institution, he was forced to use a payday loan.

From there, his troubles would begin: he took out five payday loans for a grand total of $2,500. However, for five years, he ended up paying $61,000 in interest alone. He said he had no other choice for his family.

Consumer advocacy groups have urged the CFPB for years to impose tougher rules and regulations for payday loan businesses. Payday lenders argue that any new rules and requirements would prevent them from extending credit to impecunious consumers who don’t have access to bank loans or credit cards.

Americans continue to live beyond their means

rich old guy

In the current financial climate, Americans can ill afford to splash out on luxuries and unnecessary purchases. However, according to a recent report many Americans are getting themselves into debt and using money that they cannot afford in order to lead a more extravagant lifestyle. With many Americans now leading champagne lifestyles on beer money, this is a situation that is causing some concern. Some Americans seem determined to keep up with the Jones’ even if they are struggling financially.

According to reports, some people are splashing money that they cannot afford on things such as new clothes, cars, extravagant holidays and even homes that are financially out of their reach. A recent study has shown that many Americans are more than willing to get themselves into debt in order to find this luxury way of life, which for many could lead to a downward spiral in terms of finances.

Keen to portray a lavish lifestyle

The study was carried out by Fintonic and indicated that one in eight Americans would be happy to take on $1000 or more in debt simply to portray a more lavish lifestyle to others. Moreover, 10 percent of those on $80,000 or more per year were willing to take on $5000 or more in debt in order to enjoy a more extravagant way of life.

The research was carried out in February this year and involved polling 1100 adults in the United States. Officials involved in the study said that people who were on a higher annual salary were twice as likely as lower income earners to get themselves into debt in order to enjoy more luxury. One official said that both traditional and social media tended to glorify luxury lifestyles and that this was part of the problem because it was encouraging people to get into debt in order to portray that particular lifestyle.

With so many people eager to portray a lifestyle that is more luxurious than they can realistically afford, there are concerns that more and more people could find themselves falling into the debt trap. This could lead to years of financial problems but many do not think about the long term effects when taking out finance for purchases that they cannot afford.

Experts said that people are increasingly incentivized to act in this way as a result of the way luxury lifestyles were portrayed by the media, adding that luxury was driven by social and cultural trends as well.