First, The Idea Behind billQ
Managing your finances can be a pain in the ass. Just the thought of keeping track of all your bills, and sorting through all that data can cause an instant migraine. But at the same time, staying on top of your finances is one of your most critical responsibilities. Without that diligence you can get yourself into a hole that becomes increasingly harder to get out of. A short-term slip up can lead to a much larger long-term problem.
So why don't people stay on top of their finances to begin with? Partly because it's cumbersome. There is no system in place that simplifies the task, and makes it manageable. And this is the problem we are trying to solve with billQ.
We have broken down this process of personal finance management into a few areas, and we plan on making each individual area as easy, and as manageable as possible. The first area is managing your bills, and billQ is the tool to manage that task. The other areas are in the works (but hey, we can only do so much in 40 or so hours a week).
Using billQ As A Tool To Build A Better Financial Situation
The goal for everyone should be financial sustainability. The state where you are making more than you are spending, where you are managing any debt you may have (hopefully as little as possible), and you are using credit smarty, avoiding short-sighted mistakes.
So, understanding that financial sustainability is the ultimate goal, what are the steps to achieve it? We'll we aren't the smartest guys in the world, but we think there are a few simple, common sense tips that everyone should know.
Avoid penalties, late-fees, and interest charges by paying the bills you have, on time.
Staying on top of the bills you already have is the first step towards financial sustainability. Avoid those late-fees, those interest charges, and other miscellaneous penalties. These things can create a problem that can end up snowballing. You need to understand exactly what you have to pay, when you have to pay it, and you need to understand those expenses once they're paid — and billQ is a great tool to help with this.
Do not abuse credit. Credit leads to debt, and debt is a big threat to financial health.
Once you get a handle on the bills you already have, it is important to make sure you don't start to accumulate many more (and ideally, widdle away the ones you have). The best way to do this is to ensure that you only spend money that you have. Do not abuse credit. The credit and lending industry preys on people in this way. They mislead us into thinking we can pay for things with money we don't have. And if you aren't smart with your credit, you can get caught in a predicament where you are not only unable to pay off your initial debt, but you are also forced to deal with additional late fees and interest charges. A $1,000 purchase can soon cost 3 times that amount.
Be a conscious consumer. Always understand all terms surrounding purchases and loans.
Being a conscious consumer is the biggest weapon you have. Companies and financial institutions know everything about you, but they try to keep it so that you know nothing about them. The information is out there, you just need to find it. It is your biggest protection from being misled and taken advantage of. Furthermore, pay attention to governmental issues that affect you. There is constant legislation moving through Congress that affects your financial well being, but high paying lobbyists working for corporations and institutions bet on the fact that their money will outweigh your level of interest. If you pay attention and make the government work for you — and not the corporations — this can change.
Like we said, we aren't Chief Economists or Ph.D's, but neither are most people. And the simple solutions are usually the best anyway. So we feel that keeping just these three above tips in mind, we all can make some progress towards reaching financial sustainability. Information and awareness are really the key to this whole thing, not some magic recipe for success. We also hope that billQ can help you follow through on one or two of these concepts. While not a blanket solution, billQ can definitely help with the task of managing your bills. And we are always working to extend the approach we've established in billQ to other areas. So stay tuned, stay informed, and stay determined. Let's all work together to make managing our finances a little less stressful.
Some Facts About Debt
- Average per household debt in the U.S., not counting mortgage debt, is about $14,500 — especially noteworthy because before the 1930s, most middle and working class people had no major debts. Banks would not lend to them; they rented their homes and if they did own a house, it was paid for as it was being built.
- A typical credit card purchase ends up costing 112 percent more than if cash were used.
- A $1,000 charge on an average credit card will take almost 22 years to pay, and will cost more than $2,300 in interest ($3,300 total) — if only 2 percent minimum payments are made.
- Some 40 percent of American families annually spend more than they earn.
- About 60 percent of active credit card accounts are not paid off monthly.
- A typical American family today pays about $1,200 annually in credit card interest.
- The average interest rate on credit cards is 18.9 percent.
- Last year the credit card industry took in $43 billion in card fees.
- Thirteen percent of Americans have been 30 days late paying credit card bills in the past year.
- People using credit cards in fast food restaurants spend up to 50 percent more than when they pay cash.
- The personal savings rate in the United States has dropped from 8 percent in the 1980s to just under 2 percent since 2000.
Source: Bankrate.com, 9/10/04
Organizations to check out:
What are you waiting for? Avoid those late fees and start making sense of your bills.
