RE/MAX 440
John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

Household Finance Growth Expectations On the Rise

January 26, 2015 12:57 am

A recently released survey by the Federal Reserve Bank of New York concludes that household finances could see significant growth this year. The survey indicates that median household income growth expectations rose 0.3 percent, its highest level since the survey’s inception in June 2013.

The uptick in consumer household finance expectations was driven primarily by respondents from the South and in the 40- to 60-year-old segment. In contrast, median household spending expectations declined late last year, driven primarily by high-income respondents.

Expected changes in credit availability a year from now or compared to a year ago remained mostly unchanged.

In addition, the survey points to trends in inflation, including home and gasoline prices. Median home price change expectations remained steady at 3.7 percent; gasoline price change expectations continued a four-month decline to 3.8 percent. Median earnings growth expectations jumped to 2.7 percent – again, its highest level since the start of the survey in June 2013.

Source: Federal Reserve Bank of New York

Published with permission from RISMedia.


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Setting a Household Budget and Sticking to It

January 23, 2015 12:48 am

Despite a growing economy, many Americans still struggle with money management at home. If you’re experiencing challenges financially, there’s hope. According to financial publisher Bankrate.com, establishing a foolproof budget is key to eliminating debt, saving both short- and long-term, and building wealth. Here’s how to do it.

1. Record all expenditures. Track all transactions for at least one month to gauge your spending habits. Record everything, including pocket change amounts like ATM fees.

2. Set financial priorities. After learning exactly how your money is being allocated, take time to evaluate what really matters. Expenses related to housing and utilities should always come first, followed by food, clothing, gasoline, recreational activities and vacations. Decide what you’re not willing to compromise on and actively look for areas where you can cut back.

3. Plan to pay down debt. In 2014, the average credit card debt landed just above $5,200 per borrower (TransUnion). The trick is to pay the maximum amount your budget will allow every month. Some people feel better if they tackle smaller debts first, which often take a shorter amount of time to eliminate, and others, like those with multiple credit card balances, focus on debts with the highest interest rate first.

4. Start saving today. Most experts agree that saving just 10 percent of your earnings annually can lead to significant wealth in the future. If you’re used to saving sporadically, set up an automated system with your online banking provider. For short-term savings goals, it’s best to place those funds in an interest-bearing account, money market fund or CD. For long-term savings goals, focus on gaining tax benefits by contributing to a 401(k) or IRA. Be sure to contribute the maximum amount allowed to your 401(k).

Source: Bankrate

Published with permission from RISMedia.


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