The only constant in life is change—sometimes for the better, sometimes not. But every change is an opportunity to learn. Several life-changing events in the last seven years have given the Hudson family opportunities to learn.
Their story begins like many others. They were in debt after years of supporting a lifestyle they couldn't afford. They were keeping up with the Joneses, and it didn't matter that they didn't have the money for it. Credit was easy to get, and they always assumed they'd make more money the next year and be able to pay off their debt.
How We Used to Spend
"It became a tiresome cycle of debt," Margaret Hudson said. "We owed everyone." The Hudsons had more than $10,000 in debt and owed the IRS more than $5,000. They were also driving a "fleeced" car to the tune of $600 a month. "We had no savings, and I looked forward to cashing out the equity in our home to pay off the bills," she said.
Finance
The Road To Millions: Meet The Hudsons
3 Ways to Organize Your Financial Life
When you’re just starting out, the thought of saving for 50 years from now seems like a long way off, but as life expectancies continue to rise and early retirement mounts due to layoffs or medical conditions, you will need to sustain yourself for more years in retirement compared to your parents’ generation. The biggest part of your financial success is having a plan and knowing where to stash your cash.
Ilyas Akbar, a retirement planning specialist for AXA Advisors, says it’s good for young professionals just starting out to think of their money as three buckets; short, mid, and long-term. BLACK ENTERPRISE and Akbar created a plan to help you identify your financial goals and some possible investment options for achieving those ambitions.
Wal-Mart: Our shoppers are 'running out of money'
Wal-Mart's core shoppers are running out of money much faster than a year ago due to rising gasoline prices, and the retail giant is worried, CEO Mike Duke said Wednesday.
"We're seeing core consumers under a lot of pressure," Duke said at an event in New York. "There's no doubt that rising fuel prices are having an impact."
Wal-Mart shoppers, many of whom live paycheck to paycheck, typically shop in bulk at the beginning of the month when their paychecks come in.
Lately, they're "running out of money" at a faster clip, he said.
The Color of Money: Taking Some Sting Out of Tax Liens
In fiscal 2010, the Internal Revenue Service filed liens against 1.1 million taxpayers.
That can have a lasting impact, even if the lien is eventually removed. Lien filings are picked up by the three credit rating agencies and remain in your files for seven years from the date a tax liability is resolved.
In her annual reports to Congress, Nina E. Olson, the national taxpayer advocate, has complained frequently about the burden of tax liens on taxpayers. Having a tax lien listed on your credit files can drop your score about 100 points, Olson has said.
How Much to Spend on a Car
The car rule
Dear Dave,
What’s your rule of thumb about how much your car should be worth in comparison with your income?
–Madea