When you’re in school the thought of having money – any money – is usually a laughable novelty. What money you do have is usually spent on late night pizzas and scraping up rent. Then when you get out of school and you get your first “real job” where you actually are bringing in a decent paycheck that money goes towards acquiring all the things you couldn’t buy in college. Suddenly you can afford things – you don’t have to shop the clearance rack or order off the dollar menu. Rarely do young, aspiring professionals think about planning their finances because the thought of investing money or saving a portion each month doesn’t seem as important as buying your first brand new car, or closing on your first house. However when you’re young is the perfect time to get familiar with financial planning, and can be done rather easily and in ways you may not have thought of before.

1. Don’t get caught up in what you’ve been denied

When you’re in school and you’re living on Ramen noodles made from a coffee pot (you didn’t do that? Then you were better off than me…) and meager wages from a part-time job, it’s easy to get caught up in the mindset of “I deserve this!” once you start making money. This leads to fancy new cars, swanky living situations, and other luxuries that you weren’t previously able to afford. However before you start throwing money at expensive items you couldn’t buy before, take a step back and realize that the key to a sound financial future is being smart now. Focus on saving money and scaling back on debt before you rush out to buy that expensive new car.

2. Repaying debt from school

The sheer magnitude of the debt acquired to go through school can be overwhelming and it seems like the smart thing to do would be to pay it off as quickly as possible. However before you jump into paying off debt you need to take a look at the interest rates on your debt – if you have a low interest rate then you can pay back the debt over a longer period of time and focus on investing elsewhere, whereas if the interest rate is on the high end it would make more sense to focus on paying off the debt before worrying about other investments.

3. Break it down into 1/3’s

When you do start making a more substantial income try to break those paychecks down into 1/3’s… Save 1/3 of it, spend 1/3 of it, and use 1/3 of it to pay off debt. This way you’re covering several bases at once. It can be hard to put money into a savings account each month, so one thing that helped me was adopting the mindset that depositing money into savings was just another bill I had to pay. By thinking of it that way I’ve gotten into the habit of transferring money over to savings each month without even thinking about it.

4. Plan ahead

You need a clear idea of how you want to allocate your finances so that you can best decide how to save and invest. Do you want to have enough money saved to pay for your kids’ colleges up front? Do you want to retire at a certain age? Do you want to achieve a certain amount of money in savings? Specifically defining your goals will help you figure out the best way to work towards them.

5. Give yourself a limit

Each month allocate certain amounts of money towards different categories. By giving yourself limits on what you can spend you’re less likely to go overboard. Designate a certain amount for groceries, gas, bills, savings, and fun so that you cover all the inevitable costs but you also are able to spend money on yourself. This way you won’t feel deprived and end up going on a spending spree. Taking the time to identify your financial goals is important for everyone – whether you’re bringing in a substantial income or not. Starting out with your financial goals when your career is also starting out will help you gain financial independence and security much quicker than waiting until you’re already bringing in a steady income.

This is a guest post from Laura Backes, she enjoys writing about all kinds of subjects and also topics related to internet service in my area. You can reach her at: laurabackes8 @ gmail.com.

Recently, renowned NYU professor and activist Andrew Ross encouraged students to sign a petition promising to default on their student loans in solidarity against rising student debt. Associated in part with Occupy Wall Street, Ross claimed that if enough students defaulted together, it could meet the protestors’ ostensible demands of across-the-board student debt relief, free education, and other such cosmic improbabilities. If Ross understood for just a second what would actually occur if any graduate forewent their legal contract to repay their loans, maybe he would think twice about encouraging others to destroy their financial futures. For those not in the know, there are quite a few consequences when you default on your student loans. You essentially run the risk of:

1. Losing your federal benefits

Although it is illegal for the government to take away your Supplemental Security Income, once you default on your student loans, it’s possible for Uncle Sam to take away a portion, up to 15% of your social security retirement and disability.

2. Losing your tax refund.

If you default on your student loans, you can kiss your tax refund check goodbye. After six months of non-repayment, which is the standard for considering your loans to be under default, the government can put a hold on your tax refund check until your loans are paid back in full or until you agree on a repayment plan.

3. Taking a cut from your paycheck.

Yes, the government can even start taking money out of your regular paycheck. Called “garnishing,” the Department of Education and the loan guarantee can take a certain amount of your paycheck, which can be up to a little over $200 dollars out of your weekly wages.

4. Having any professional licenses revoked.

If you are in a profession which requires a license, such as any of the various medical or legal professions, you could stand to have your license revoked. This may entail being fired from your job and not being able to practice your profession elsewhere.

5. Trashing your credit score.

This, of course, goes without saying. Although having a poor credit score is not the end of the world, and you can certainly work to raise it again, the going will be very tough. Having a poor credit score can destroy your chances of ever buying a house, securing more funds for education, or making other important purchases later down the line.

6. Being sued by the Department of Education.

You read that right. If you default on your loans, the government will go as far as to sue you to get their money back. The Department of Education can extract funds from back accounts, property, and other assets.

Of course, it’s unlikely that you’ll cavalierly join Ross’s call to default on your student loans. If you are defaulting out of necessity, however, there are different options that you should look into. Communication with your lenders is key, as they can adjust repayment plans to accommodate you. Whatever you do, don’t simply stop repaying without letting anyone know! It will come back to haunt you.

This is a guest post by Mariana Ashley, a freelance writer who particularly enjoys writing about online colleges. She loves receiving reader feedback, which can be directed to mariana.ashley031@gmail.com.

OK, it's nearly a week after Black Friday so an article on holiday spending is probably too late for shopping junkies. But since I don't shop until at least December 15, there may be time to reach some of you who think like me :)

So, do you even have a plan for holiday spending?

Be honest now, nobody will know but you (well, the big guy in the red suit might find out, I think he signed up here a few weeks ago before he got busy).

My plan is the same as always - focus on quality and not quantity. And no, I'm not doing this just because I'm cheap. Fortunately, our kids don't ask for lots of junk. The realize the holidays are not just about spending lots of money and getting lots of gifts. Unfortunately, the gifts they do ask for are usually expensive. But at least we know they are getting something they really want and can really use. Which at least makes buying gifts a lot more fun.

Sadly, many people don't have a plan for buying holiday gifts. They just go out shopping, and buy whatever they find for the people on their list. This is clearly the WRONG way to approach holiday shopping. The list should include not just names, but gifts. This way you'll limit what you spend. Of course, if money is no object then a plan doesn't matter. But for the rest of us it does.

Do yourself a favor, make a list like Santa does - with name and gifts. And limit your buying to what you can REALLY afford - if you need to cut back a little now so don't end up with huge credit card bills in January your friends & family will have to understand!

So, what's your plan for this holiday season?

So, are you wondering how you could have saved much more this year than last year? Luckily, you can start afresh in 2011. Every year people make resolutions, so this time you should take some extra care of your personal finances. It is really important that you have proper control over your finances just so that you can feel good about them when you look back next year. Here are a few personal finance tips that will do you good. Take a look:

How to take care of your finances this New Year!

The moment you ignore your finances, chances are good that they may go haywire. So, always keep a strict eye on your money and invest and save wisely. Here are 6 of the top personal finance tips that you can benefit from:

1. Assess your wealth: This would be the first step in any savings plan. You first need to find out how much you have, how much you owe, and how much you will have to spend on your basic needs. Finally you must analyze how much money you can set aside for savings. You can use online ledgers or make one of your own so that you can keep a track of your finances.

2. Set long-term goals: When you want to save money, you need to set long-term goals for yourself and your family. Some of these goals could be your child’s marriage, their education, your retirement, or buying a house in the future. So, start investing some part of your earnings in a savings, money market, or other investment account. Whatever it is, just get started saving for the future. You will have to start planning now if want to save for your future.

3. Create a cash buffer: By this we mean that you must have at least 3-4 months of expenditures available in your savings. It is important that you save regularly and have money set aside for emergencies. This is why a cash buffer is very crucial.

4. Regular savings: This may require a lot of discipline but again save regularly. Put aside a fixed amount each month or each paycheck and do it very strictly. Even when you think in some months that you cannot do it, still save the amount. That's where an automatic deposit comes in handy, so you don't miss the money and aren't tempted to use it on other things.

5. Teach your children: When you want to keep your personal finances on track, it is very important that your family gives this importance too. Teach your children the value of money. Let them know that it is your hard earned money and that it is not to be squandered away. This way, even they can help you save or maybe they can learn to save at an early age.

6. Shop before the New Year: If you want to buy something that costs a lot, then buy it now. This is so that you can avoid the new and increased VAT that will be introduced in the New Year. (A great tip for our readers in the UK).

It is your money and you need to save & invest wisely. So, take care right now and start managing your finances for 2011!

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This is a guest post from Jonny at FinanceWand.com. His experience, knowledge and network of financial professionals makes him a more valuable resource for individuals and small businesses, while trying to improve their current financial position as well as their future prospect. Check out his blog on personal finances and budgeting.

Hundreds of budgeting and other personal finance websites will give you advice about saving money, and while there are many solid words of wisdom out there, many simply don't get the fact that making significant lifestyle changes is difficult. Just like extreme diets, making drastic changes with your spending habits is feasible for a few months, but more than likely we just yo-yo back to our old ways if we try to sacrifice too much. The best money-saving method, one that works better in the long-term, is to make smaller adjustments and keep these adjustments constant. I personally saved more money than I ever have in my life merely by assessing and recording my spending habits, then eliminating habitual expenditures that didn't seem like much at the time, but really added up after a year. Here are a few common money-wasting culprits that can easily be disposed of.

1. Bottled water.
Purchasing bottled water over the long-term can become a fairly large expense, especially considering that we must drink water every day. Even if you don't consume the recommended 64 oz of water daily, you'll more than likely have at least half of that. While bottled water does taste better, there aren't any significant health benefits to be gained, so purchasing a filter to put on your tap gets rid of the tinny taste and works just as well. I saved about $600 over the course of a year by switching to filtered tap water. It also cuts back on container waste.

2. Individual coffee drinks.
If you're anything like me, you absolutely need caffeine to get through the day. Before getting to work, I would always get a small coffee at a cafe next door. While the coffee was high-quality, it also cost almost three dollars per cup. Sometimes I'd get another cup during my lunch break. I never really thought about it, but these coffee drinks really started to add up. By brewing my own at home, and bringing a thermos with me, I saved about $800.

3. Organic or all-natural food.
Don't get me wrong I am committed to the environment, and I much prefer unprocessed foods that are prepared without chemicals or preservatives. Still, many people buy such products based on the label and not on the actual value. Before spending extra on all-natural foods, do some research and know what you're buying. After becoming a more educated consumer, I usually pass on anything labeled "all-natural" since it has absolutely no standard and is virtually meaningless. I also limit my organic purchases to produce (unless it has a protective skin like bananas), beef, and dairy, as the non-organic varieties of these products are most likely to contain additives. Check out this New York Times article for information on food labels.

4. The latest gadget.
In our tech addicted world, I know that this one may be hard for some of you. But trust me, you really don't need the latest mobile device on the market. I used to purchase every new Apple product when it first came out, but by biding my time and waiting for prices to drop (which they always do), I was still able to satiate my technology cravings while saving at least $3,000-$5,000 a year. Be patient and save big.

While everyone has different money-drainers, the concept is the same. Saving money doesn't have to be rocket science. All it takes is a little bit of awareness and a commitment to making small changes.

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This guest post is contributed by Barbara Jolie, who writes on the topics of online classes. She welcomes your comments at her email Id: barbara.jolie876@gmail.com.

Editors note: The 2 easiest steps you can take for getting out of debt are making more and spending less, and this article certainly gives you a few good tips for cutting your spending.

Insurance can put a dent in our budgets, but it can't be cut out entirely. Insurance protects us from unexpected events, financial disasters, lawsuits, and other things that we often don't think about until they happen. The good news is that there are lots of little ways to save on necessary insurance costs. Here are ten to explore in your spare time:

1) Buy Your Policies from the Same Company

Buying your auto, home, renters, life, and umbrella insurance from the same company can provide a very nice discount on insurance costs. The size of multiple-policy discounts can range from company to company, but most people can save at least 10 percent.

2) Buy the Right Amount of Insurance

Being under insured is never a good thing. However, you don't want to be over insured either. Buying too much insurance coverage can be a waste of money. Take time to do an inventory of your home's contents so that you can purchase the right level of insurance coverage. You should also check to see how much it will cost to rebuild your home. Other things to look at include your auto insurance coverage and liability levels. You may be able to lower liability insurance on some policies and save enough to purchase a separate umbrella policy, which can often help you save in the long run.

3) Look into Group Plans

There are many different employers, schools, professional associations, and other organizations that offer group insurance plans. You may be able to buy auto, home, life, health, disability, and other types of insurance at a discount by purchasing policies through the companies that these groups work with. You can learn more about group plan availability by speaking with someone at your organization or checking your employee and member handbooks.

4) Buy from Specialists

Buying from a company that specializes in a particular type of insurance, such as life insurance, flood insurance, or classic car insurance, can also net you significant savings. Companies that specialize in one type of insurance are often able to sell policies at deep discounts. They also tend to handle claims more smoothly than companies that sell every type of insurance imaginable.

5) Ask About Discounts

Although different companies often offer different savings packages, discounts are available for every type of insurance that can be purchased. Questioning your agent about the various discounts you may be eligible for is the key to unlocking these savings. Common discounts include multi-policy discounts, multi-vehicle discounts, paperless billing discounts, safety feature discounts, good driver discounts, good student discounts, loyalty discounts, professional discounts, senior discounts, and healthy living discounts.

6) Raise Your Deductible

Your deductible is the amount you have to pay before your insurance kicks in. When you buy an insurance policy, agents often neglect to ask you how high you would like this deductible to be. If you raise your current deductible by $250 to $1,000, you could save as much as 30 percent on your insurance costs.

7) Reduce Your Risk

Insurance companies will charge their "risky" customers higher premiums. You can reduce your auto-related risk by avoiding tickets and accidents and taking a defensive driving course. You may also be able to lower your home insurance by installing an alarm system, deadbolts, updated electrical systems, and other safety features. Finally, don't smoke. Doing so will raise nearly all of your insurance rates.

8) Maintain a Good Credit Rating

Your credit score can have a significant impact on your insurance rates. You can get lower rates by improving your credit score and maintaining a good credit rating. If you currently have bad credit, you may want to consider purchasing a policy from one of the few insurance companies that do not conduct credit checks.

9) Stay with the Same Company

Staying with the same insurance company for several years could allow you to benefit from a loyalty discount. Many of the largest insurance companies offer this discount to customers who renew their insurance policy each year.

10) Shop Around Frequently

Although staying with the same company can lead to discounts, it also makes sense to shop around every year or two to make sure you are getting the best deal. When shopping for insurance, you should contact multiple companies for a quote. Be sure to ask about applicable discounts as you are making your inquiries.
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This is a guest post from Bailey Harris. Bailey writes on finance, insurance, and related topics for the Car Insurance Blog.

Editors note: Shopping around for the lowest price is a if you are struggling with money or dealing with too much credit card debt. While it is nice to stick with the same company for many years, it is not always the best financial decision.