The following is a guest post for our UK readers.

Recession is an unpleasant time for everyone. Constant headlines shouting the depressing news that the country’s finances are not in good shape, tales of long-established businesses going to the wall, job losses… nothing greatly positive there. With the world economic crisis rumbling on into yet another year, it has felt as if gloomy economic news is par for the course in our current environment.

Yet there are ways to think positively and the country being in recession by no means is an indicator that your own personal finances will suffer terribly too. As with anything financial, the only way to face a recession is head on. Planning carefully, budgeting within your means and taking responsibility for your personal finances will help you ride out the recession safely.

It’s important that you plan around your actual income, not rely on extras, like overtime or bonuses. It is easy to get into debt at any time in your life, but especially during a recession. If you have racked up debts then it would be easy to think that external financial circumstances will render it impossible to get yourself out of debt. This simply isn’t the case and there are a number of things you can do to help yourself get back on an even keel…

Dealing with Debt Effectively

Start by establishing exactly how much debt you actually owe. Include absolutely everything and look at what the monthly premiums are for each loan, credit card or other borrowing. Next, you need to ascertain what your incomings are. Here comes the tough part; you need to stop borrowing. The spiral of debt is made worse by borrowing from one place in order to pay off a debt in another. You need to adapt your lifestyle so you are living within your means. Nice cars and luxury holidays are lovely, but you need to have the means to fund them and your priority right now is getting yourself out of debt. When you are debt free and have a little more disposable income, then you will be able to enjoy these types of treats within your budget.

From here, you need to make a strict priority order of which debts you need to pay off. Your mortgage is imperative and, of course, your monthly bills and household expenses need to be paid regularly. But with your credit card or loan debts, you need to see which ones you are paying the highest interest on and get these cleared as soon as possible. If you’re unsure how much extra you will repay on your overall debt, you could use this handy interest calculator tool from Baines & Ernst.

Also, you could find out if you can transfer as much of your credit card debt as possible onto a low – or even zero – interest credit card as repay as much of the debt as possible.

Professional Help

If you have lots of unsecured debts like personal loans, credit cards and store cards, you could consolidate these debts with a solution such as a Debt Management Plan or an IVA. You don’t have to lend money with either of these solutions, instead you’ll be repaying your debts at a rate you can afford and have the peace of mind knowing that your debts are being taken care of by a professional debt management company.

Managing Debts If You’ve Neen Made Redundant

If you’re made redundant, the best thing to do is to contact your lenders and inform them of your change in circumstances. They may be able to help you arrange a repayment plan or you could even qualify for a payment break.

If you’re entitled to job seekers allowance, you should also see if you qualify for additional benefits to help with housing costs and council tax reductions.

And if you’re struggling with debt repayments, you could speak to your local Citizen’s Advice Bureau who can speak to your lenders and help you arrange an affordable repayment plan while you’re out of work.

This post was made possible by Baines & Ernst.

The 8-hour workday is not much of a norm anymore. Not only has technology changed the way people work – carrying work home with them because of smart phones and email accounts – but it has also impacted the nature of work. An ever increasing number of people operate from home, often according to their own scheduling preferences. What’s more, working overtime and having a sideline job is now quite common. Among those who work more than 40 hours per week, many have actually decided to do so and one of the motivating factors, which drive people to work more undoubtedly, is money.

More Work Often Rhymes With More Money

The figures reported in a study by Dembe, Erickson, Delbos and Banks show that in the United States, between 19% and 33% of overtime work is compulsory. In other words, workers sometimes do not have a choice: they must work longer hours, as it is intrinsic to their job. Still, if we reverse the aforementioned figures, we could also say that between 67% and 81% of overtime work is actually… deliberately chosen by the employee. Many things could account for that: people might want to work more just because they love their jobs or they might want to do some extra hours with the intention of eventually being assigned to a higher position, for instance.

But another potential explanation is money. Working overtime can indeed make a significant difference on any American’s pay check since the overtime provisions of the Fair Labor Standards Act state that an employer has to pay his or her employees a minimum of 1.5 times their regular rate of pay when they are doing overtime (although certain fields of activity are not included in this Act). Yet, overtime is not the only source of extra work. Part-time, second jobs also are quite common among the American labor force.

At the end of the 1990s, more than 8 million American workers were holding two jobs or more. Among these people, almost 31% said they had more than one job in order to pay for their regular expenses while just over 10% said they did so to pay off debts. Close to 9% said they wanted to save for the future and plan some retirement savings while almost 8% said they sought to be able to buy something special with their extra earnings. Others (about 15%) simply enjoyed having more than one job at a time and more than 16% declared having other reasons to do so. Yet, what really stands out from these statistics is that money is at play: whether it is to clear off debt, pay for common expenses or save for one’s old days, working more yields some financial benefits.

The Downsides of Working More

If some people seem to absolutely need that extra money to survive and be financially comfortable, others yearn for it in order to build personal projects. This is actually honorable  striving in order to achieve your personal goals – whether it is to go on a trip abroad, buy yourself a new car or make a down payment on a condo – undoubtedly is the best way to give some meaning to your daily efforts. The risk, however, is to eventually lose sight of your goals and to work extra hours just for the sake of… working extra hours.

Of course, there is nothing wrong in having fun at work and enjoying one’s job. But working 50 or 60 hours per week without having a precise goal in mind or without having enough free time to benefit from that extra money you earn can cause more harm than good to some people. Academic research has actually confirmed that working too much can be detrimental to one’s health. The aforementioned study by Dembe, Erickson, Delbos and Banks published in 2005 in Occupational and Environmental Medicine, for instance, shows that the risk of being injured at work increases as a worker performs extra hours.

In fact, jobs with overtime schedules are associated with a 61% higher injury hazard rate when compared with jobs that do not include extra work hours. Also, working 12 hours per day is apparently associated with a 37% higher injury hazard rate. Another study by Virtanen and colleagues shows that working long hours is associated with a 40% excess risk of coronary heart disease. Obviously, the potential negative consequences of doing extra work are not limited to psychological stress and exhaustion: they also extend to physical health.

Considering all of this, finding a balance between extra work and leisure time is important. Working more hours in order to earn more money and eventually being able to achieve a personal goal is great. But working 60 hours per week without a strong, personal motivation can become alienating. In effect, what is the point of working more if you ultimately do not take some time to enjoy that extra money you have earned? Will spending that money on a more expensive car or saving it all for you old days bring you more happiness? Of course, the answer depends on your own priorities and needs. But setting yourself short-term goals as well can give some meaning to a temporary hectic lifestyle that otherwise could lead to exhaustion. And remember that having more free time and spending it with the ones you love can be a goal in itself too…

Alexandre Duval, the author of this post, is a freelance blogger for Standard Life who writes about money, lifestyle and travel, among other things. He is currently completing a master’s degree.

The following is a guest post.

It is every parent’s job to teach their kids how to use money and how to be financially responsible. Sure your kids’ teachers will help them understand the basics of how money (and even an economy) functions. For real world financial stuff, though, your kids are going to look to you. So how do you teach them how to save and spend wisely?

Lead by Example

You can’t expect your kids to learn how to be financially responsible if you are financially irresponsible. You want your kids to see you pay your bills on time. You want your kids to see that you don’t buy things you can’t afford. You want your kids to see you save up for something big instead of just putting it on a credit card and hoping for the best. You want them to see you putting money in the bank instead of spending every penny as it comes in. You know, the basics.

Incentives Work Wonders

Especially when your kids are very young, offering a reward for saving is one of the best ways to encourage your kids to save instead of spend. The best way to do this is to—the next time your son asks you for a specific toy, tell him to save up the money himself. Help him come up with things he can do around the house to earn extra money and then encourage him to put the money somewhere safe. You might even buy him a personalized bank or wallet in which to keep the money he saves. Give the wallet (or bank or mug or whatever) to him as a special gift. Your son will love having something special just for his savings and you’ll be happy knowing that he loved seeing his name on the gift!

Take Your Son Shopping

Instead of allowing him to run around and look at things or dropping him off with the books and magazines and picking him up on your way back out, keep him with you. Talk about everything that you put in your cart and why you choose that specific item instead of a competing item. Explain how the value of an item gets figured out. A good example of this is toilet paper. Show your son how to divide the cost of a package of toilet paper by how many sheets are actually in the package. Compare that to other brands and packages to see which offers the best value.

Stop Being a Bank for Your Kids

As your son grows up and becomes more autonomous, stop buying everything for him. It’s one thing to keep him supplied with sturdy clothes and good food. It’s another to open your wallet whenever he wants to go to the movies, buy a new skateboard, etc. Encourage your son to take on after school and weekend jobs like mowing lawns as soon as he gets old enough to be trusted with such things. Then explain that he can use his money for (pretty much) whatever he wants but that you aren’t going to help him afford things that you wouldn’t buy for him already. This gives him practical experience with money and saving before he leaves the house.

Remember: kids make mistakes. You’re going to have to be patient with your son as he grows up and learns how to handle his money. It will be hard to resist the urge to jump in and fix it every time he makes a mistake. But not jumping in is how he learns…and when he’s all grown up? He’ll thank you for being such a great teacher.

The following is a guest post for our UK readers.

Among the measures announced in last month’s Budget was a Help to Buy scheme, which is intended to help people get a foot on the property ladder. It will allow first time buyers to put down a deposit of just 5% on a home that is newly built. A shared equity loan from the Government will then fund 20% of the home’s cost, and will be interest-free for the first five years. This means it is now the perfect time to start looking for a newly built home – some of the perks are listed below.

Better Insulation

As regulations get stricter, the energy efficiency as well as sound insulation of newly built homes improves. New homes are guaranteed to be up to the standards of the most recent Building Regulations – they will have the most up-to-date heating system and therefore will be more energy efficient. You can ensure a good level of insulation by having double glazed windows and doors as well. Overall, you have a better chance of staying warm in winter and reducing the sounds from traffic or noisy neighbours.

Better Security

Homes that are newly designed and built have better security systems, with many either already having a burglar alarm system or being pre-wired for one. They usually also have stronger locks on doors and windows as standard. As well as helping you feel safe, this has the added benefit of reducing costs when it comes to insurance. They are also safer when it comes to the risk of fire, with linked smoke alarms and some rooms with windows large enough to be used to escape in case of fire.

Better Maintained

New homes mean up-to-date fixtures and fittings, so there will be no upgrades required for several years. They will not need to be upgraded in terms of safety or security, or even refurbished due to looking worn and dated. Because everything will be new, it will also be clean so there will be no stains or scratches on any of the fixtures and fittings. The standard of the fixtures will also be better; the majority of newly built homes will come equipped with an oven and hob with extractor hood, while many also have fitted wardrobes in the bedrooms, which can be a good space-saver.

More Eco-Friendly

Newly-built houses and flats emit lower amounts of carbon dioxide than older ones and therefore use less energy. They tend to use water more efficiently with fittings such as dual flush toilet cisterns.

Known Maintenance History

Another nice feature of a newly built home is the fact that you’ll know the maintenance history from day one. You’ll be able to ensure that all major appliances and systems have all of their normally schedule maintenance performed, unlike when you buy a house from a previous owner. They may say they have properly maintained the systems, but will you ever know?

Could it be time for a new home? Make sure to weigh the pros and cons of a new home before you make any decision.

This post was made possible by Zenith.

The following is a guest post for our UK readers.

Debt is something that most of us will have to deal with at some stage in life, but it’s not a state you want to get stuck in. When you decide to work your way free of debt, there are two basic options available to you. Either you go it alone and clear your debts, through frugal living and strict budgeting, or you seek professional assistance through an organisation like a debt management company.

The approach you choose depends on the amount of debt you are in and your personality. If you have the determination to work your way clear of debt then it may be that you simply need to make find some ways to reduce your expenditures and you’ll gradually be able to pay off outstanding debts.

Look closely at your household expenses and see where you can cut costs. Switch to the best tariffs for utilities, look at reducing how much you spend on items such as mobile and internet, and cut out any luxuries that you can live without like a gym membership. One of the most effective ways of reducing monthly expenses is by changing supermarkets – forget about which brand you like the best, go to the cheapest chain until you can afford not to. Every saving you can make on money going out means that you’ll have more available surplus to pay off existing debts.

Some other ways to save money include taking public transit if you current drive a car, cutting your dining out back drastically, cutting any unnecessary expenses related to your children or moving to an area with lower rent. You could also downsize to a smaller home if you own your house. This will lead to smaller utilities bills and likely a smaller mortgage payment as well! Talk about win win!

However if you find it hard to be this self-disciplined it may be better to get professional debt management help. The first thing a debt management company will do is look at your income and outgoings. They help you work out a realistic amount that you can pay for your debt clearance each month. You then make one single payment to the debt management company and they redistribute that amongst your creditors. This method is preferable for some people as they no longer have to deal with a number of creditors as the debt management company acts as an intermediary. They can also negotiate better interest rates on your behalf.

Even though you have to pay for the service, it means taking the administrative burden off your shoulders, which can really relieve a lot of the stress associated with debt.

Be careful which companies you work with. Make sure to do your research and make sure the debt management company you choose is a reputable one that isn’t just trying to take advantage of your hard times. Try to take care of your debts yourself first, because that is the honest thing to do.

Whichever way you decide to approach debt, the important thing is to start tackling it now – the longer you put it off, the worse the situation will become.

This post was made possible by Debt Free Direct.