We all know that we’re supposed to be paying down our debt — and doing it aggressively. However, there are situations when stretching your finances each month to make that extra payment might not be the best idea. While you want to meet your obligations whenever possible, and get rid of your debt as fast as you can, it’s not always a wise idea to put every penny toward aggressively paying down your debt. Here are some situations that should make you think twice about paying down your debt :

You’re Uncertain About Your Job

While the worst of the economic downturn appears to be over, there are still those in precarious positions at their jobs. If you are uncertain about your job prospects, and fear being laid off in the next few months, putting every extra penny toward reducing your debt might not be the best idea. Instead, you might be better off building up your emergency fund. You can still work toward debt reduction, but you might slow it down so that you can prepare for something unexpected. Otherwise, you might find yourself with no choice but to turn to debt when you do get laid off, running the credit cards back up.

You’re Paying Down the Wrong Debt

In some cases, you might be making great strides with your student loans or your home mortgage while this is a positive thing, you shouldn’t be aggressively paying down these debts until everything else is paid off. Student loans and mortgages generally have low interest rates — and the interest is tax deductible. Before focusing on building more equity in your home, you need to pay down your higher interest debt. This is debt without tax benefits, such as credit cards, payday loans, or other high interest debt.

You’re Stealing from the Future

You do need to get your debt paid off if you can — and do it quickly. But you should also be preparing for the future. You want to keep making some contributions to your retirement fund while paying down debt. And don’t raid your retirement account to pay off the debt. Sure, you can pay back the loan from your account, and you are paying yourself interest. But if you aren’t careful, you could end up paying penalties and taxes on the amount you use to pay down your debts. On top of that, you can’t replace the money the missing principal would have been making.

You’ll Never Pay it Off

Finally, you need to realize that you might be in way too deep to pay off your debt. While it is better to meet your obligations, sometimes you might need a settlement to reduce the amount you owe, or you may even need to file bankruptcy. This might not be your favorite option, but if you are so far in that no matter how aggressively you try to pay it off, you cant, then it is time for drastic measures. Continuing to try to pay down debt that is honestly too big for you will only result in years of frustration as you do everything you can, only to fail. Honestly evaluate your situation.

Usually, paying down your debt aggressively is a good idea. However, there might be some circumstances in which it is better to take things a little slower, and save the final pay off for another day. Once you are in a better position, you can begin stepping up your efforts.

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This article written by Miranda Marquit. Miranda is a journalistically trained freelance writer and professional blogger working from home. She is a contributor for Mainstreet.com, Personal Dividends and several other sites.

All content copyright Cash Money Life; if you are reading this on another website it has been illegally reproduced in violation of copyright laws.

People love their pets. This is particularly true with dog owners. Our beloved dogs are pampered, groomed, and even clothed. We make them into a regular part of the family. As more and more canine luxury items” have begun to hit the marketplace, we’ve jumped on board to spoil our furry friends with these things, too. But have we gone too far?

When it comes to your dog, yes, there are definitely some luxury items that are worth buying. However, there are also some things that are nothing more than a waste of money. You need to know how to differentiate between the two, and ensure that you are spending your money wisely. Once educated, the level of love you give your pup is up to you.

What to Buy

1. Organic Dog Food
This is one luxury item that’s really worth some consideration. Many dog owners have found that traditional dog food is full of ingredients that may not be best for Fido. For this reason, the organic dog-food industry is taking off.

Since organic food is made from all organic ingredients, it is healthier for your dog. Additionally, this choice carries the same perceived environmental benefits as the organic foods that you yourself might choose to eat. Some of the most popular brands include: Wellness Dog Food, Canidae Dog Food, Natural Balance Dog Food, Blue Buffalo Dog Food, Solid Gold Dog Food, and HALO Dog Food. If you are interested in buying organic food for your dog, compare the brands above before making a purchase.

2. Homemade Dog Treats
This may be a stretch for some owners, but your dog deserves something special from time to time. There are many places to purchase homemade dog treats. For example, shopping malls have kiosks, and you can even find independent bakeries. Of course, you can buy all the proper ingredients, find a recipe online, and do it yourself.

This is definitely considered a luxury, but it is one that you should consider giving your dog. After all, homemade treats dont cost much more than those that you can buy at the grocery store.

3. Orthopedic Furniture
Believe it or not, there is a huge market for orthopedic dog-furniture. For example, does your dog have a bad hip? If so, try an orthopedic bed. These are meant to alleviate pain and increase comfort for your ailing pet. These cost more than standard dog beds, but since they are made with memory foam, they are able to alleviate pressure on the joints and bones.

What Not to Buy

1. Luxury Clothes
Your dog is not a person! It does not need sweaters that cost $50 or shoes that are more expensive than the ones you have on your own feet. If you are going to purchase clothes for your dog, stick to affordable items. You can get something that looks great at a bargain price. After all, your dog won’t treat a luxury sweater with any more concern than a sale sweater.

2. Excess Furniture
From chairs to sofas and loungers, the dog furniture industry is booming. The question remains: does your dog really need the same furniture options as you? What happened to letting Spot sit on the floor? Pick the right-sized crate and maybe splurge on a nice bed, and you’re probably good to go.

3. Gold-Plated Dog Bowls
That’s right, these do exist. Seriously, does your dog really deserve to eat out of a bowl while you serve yourself dinner on a paper plate? Your dog does not care if it’s eating from an expensive bowl; it just wants food. Save your money for something more important, or better, take the amount you would have spent on a sparkly bowl, and donate it to a shelter in your area.

As you shop for luxury items for your pet, consider the points above. These will help you determine where to spend your money, as well as what you should and should not be buying.

(photo credit: epSos.de)

Luxury Items for Your Dog: What to Buy, What not to Buy is an article from Money Funk

Sometimes its easier to decide what not to do than what to do. Maybe thats why so many people have trouble coming up with New Years resolutions. Pledging to follow a brand new plan or lifestyle can be a little intimidating, to say the least. It might be more effective to focus on a few specific bad habits that you want to kick. If youre ready to accomplish more with your money in 2011, here are 7 bad financial habits to get rid of as soon as possible:

7 Bad Financial Habits to Kick

Bad Financial Habit #1: Ignoring Your Cash Flow

One of the best ways to take control of your money is to understand how it flows into and out of your life. That sounds simple, right? Well, apparently it isnt because close to 60% of Americans dont track their income and expenses! Either the majority of us are too lazy to create and monitor a spending plan or we really dont want to know how we spend money, or both. The obvious problem with being clueless about how you spend money is that youre not likely to accomplish important financial goals. So become your own spending detective and figure out where you can cut expenses and save more for your future.

By the way, Im giving away two free chapters from my new book, Money Girls Smart Moves to Grow Rich, for a limited time. One of them (chapter 2, Creating a Financial Plan) covers what you need to know to assess your current financial situation and tells you exactly how to create a spending plan step-by-step. Be sure to download your copy of both chapters at SmartMovesToGrowRich.com.

Bad Financial Habit #2: Making Impulsive Purchases

Everywhere you turn theres an opportunity to spend money. I learned a long time ago that the best way to stop making impulsive purchases is to stay out of storesboth online and offline. The more sales, discounts, specials, and buy-one-get-one offers you see, the more likely you are to buy something you dont really need. When youre tempted to make an impulsive purchase, dont do itwait 24 hours and reevaluate. In most cases, youll realize that you can live without the item and that youre not half as excited about the purchase as you were in the heat of the shopping moment.

Bad Financial Habit #3: Using Credit Cards for Purchases You Cant Pay Off

A credit card can be a fantastic financial toolwhen used responsibly. It takes a lot of maturity and self-control to use credit cards only for purchases that you can pay off in full every month. If you cant pay cash for something then you shouldnt purchase it with a credit card either. Make it a rule to use credit cards for the convenience, rewards, and purchase protections that they offernot to finance a lifestyle that you cant afford.

Bad Financial Habit #4: Forgetting an Emergency Fund

I get frequent e-mails from Money Girl podcast listeners who need advice about how to get out of a financial jam, like losing their job or being unable to work due to do a medical crisis. In most cases, they wouldnt be in a jam if they had an emergency fund to fall back on. Dont wait until its too late to learn this important lesson. Start putting aside enough money each month so you can accumulate at least 3 months worth of your living expenses by this time next year.

Bad Financial Habit #5: Procrastinating Saving for Retirement

Many young people dont think they earn enough to save for retirement. Ill really sock money away when I start earning more. Oh, thats a good one. I used the same excuse when I was in my 20s. Middle-aged people have their excuses, toolike I need to save for the kids college first and then Ill focus on retirement. And older folks might procrastinate by saying its just too late now to save enough for retirement. Whatever your age or stage in life, youre the only one whos in charge of your financial success or failure. If youre not saving at least 15% of your income for the future, get started right now!

Bad Financial Habit #6: Turning Down 401(k) Matching Funds

Why people turn down free money from their employer is a complete mystery to me. Getting matching funds for your 401(k) or 403(b) contributions is like getting a raise for doing nothing! If youre not taking advantage of employer matching, make it a priority to contribute enough to max out the match and let your employer help you finance a cushy retirement.

Bad Financial Habit #7: Being Content with Unimpressive Bank Accounts

Upgrading your bank accounts is a simple way to earn more interest on the money you already have. Search for high-yield checking and savings accounts at sites like checkingfinder.com and depositaccounts.com, where youll find offers that exceed 4%. You may have to follow requirements like getting e-statements or using a debit card for a certain number of transactions each month, but its well worth it!

Small financial changes can lead to really big resultsbut you have to start somewhere. Think about what you want to accomplish in 10, 20, or 40 years from now and let your goals stir your soul and inspire you to take action today. If you get enthused to kick just a few of these bad financial habits this year, youll create a wealthier, more comfortable future for yourself and your family.

Photo: Slakingfool.

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This article written by Laura Adams. Laura Adams is the author of a new book, Money Girl’s Smart Moves to Grow Rich (St. Martin’s Press). Order your copy at MoneyGirlBook.com. Laura hosts the weekly Money Girl podcast over on Quick and Dirty Tips. For money tips, advice, news, and resources, connect with her at SmartMovesToGrowRich.com.

All content copyright Cash Money Life; if you are reading this on another website it has been illegally reproduced in violation of copyright laws.

The holiday season has officially begun with the hustle and bustle of retail shopping, pulling the boxes of decorations from the garage, and families planning their seasonal meals (now if California would just drop below 78 so I could light the fireplace).

But are you nervous about spending money during the holidays? Well, if so, you are not alone. While retail sales are showing a promising sign this year, its my gander that people are putting a more conscientious thought into their purchases. It just means there is a frugalite in training – taking that hard earned money and finding the best buy.

A frugal holiday can still be high in cheer if you think like a pioneer, plan the holiday budget, instill some frugal fun, research some great sales and take up that free shipping. Yup, free shipping! Read all the way down for details. Check out my giant holiday post.

Pioneer Christmas

How do you have a real frugal Christmas? Think back to how our Old West ancestors celebrated – with a Pioneer Christmas.

Taking the consumerist out of the season is not easy. I really had to consider this one. With everyone so geared to opening retail gifts, is it possible to have an enjoyable simple holiday with our loved ones?

Well, I am willing to try! Here are some tips to bring you back to the roots of celebration:

• Cooking all day. There is nothing better than having the family cook a great big meal together. Its especially great at my aunts house because we cook Filipino, Mexican and a traditional American meal.
• Use natural materials found anytime of the year, such as evergreens, pinecones, holly, nuts, and berries. The great Adirondack Christmas simple, natural, and cozy.
• Decorate the tree with ribbon, yarn, berries, popcorn or paper strings, and homemade decorations. Sounds like a great craft for the children to string popcorn or berries! My daughter and I are making colorful paper chains this year.
• Give gifts of jam, preserved fruits and vegetables. If you are a crafty, make gifts of dolls, sachets, knitted scarves and hats. Gift making was a craft that lasted through the year in the pioneer days. Since I have not been so crafty this year, the farmers market and craft fairs will make a great place to stock up on gifts with love. Time to ponder on next years gift giving list.
• Sing carols with friends and family around the Christmas tree or fireplace. I remember as a child, we used to take hayrides around the neighborhood to sing Christmas carols. What fun! Does anyone do that anymore?

Christmas Budget Worksheet

You may start realizing, as Christmas dawns, that you forgot to get a gift for Aunt Sallie or Uncle Bob. If you dont plan accordingly, the holiday forget mes cant wreck serious havoc on your finances. Save the stress and have a merry holiday by using the Christmas Budget Worksheet by Simple Living.

Advent Calendar

With all the hard work that goes into preparing for the holiday. Make it shine each day with opening a small give from the advent calendar. Yes, even adults can enjoy a bit of chocolate or a script of love.

Last year, I finally remembered to buy my daughter an advent calendar before they were sold out. Trader Joes sells a great chocolate candy advent calendar every year. But, I wanted to craft an advent calendar so I could have to take out each year. So, bring a bit of frugal happiness to a person each day in December by creating a matchbox advent calendar. Those small pieces of left over scrapbooking paper or gift wrap now have a purpose!

Five unique ways to make and display them:

• As crafty apothecary drawers
• Stacked up as a Christmas tree
• Magnetized to the fridge or a cookie tray
• Arranged in a pretty bowl
• Hang on Garland with pretty string

Plan a Christmas Dinner on a Budget

Whether you plan to host a few friends or a large gathering of family members, planning a Christmas dinner requires some thought, and a little creative shopping. Fear not. Following these tips will allow you to plan a Christmas dinner on a budget.

• Host a potluck. Big gatherings can be expensive. Especially when everyone has a hearty holiday appetite. To stay in budget, our family hosts a potluck. The hosting family will provide the main course – usually a turkey or ham. Then family members will bring all the side dishes and desserts. It works out great, as there are always tons of left overs to take home.
• Change the main course. A traditional thanksgiving dinner may not always the frugal choice. Consider mixing up the menu to fit within the budget. Most people will welcome the change. With my family, there is no shortage of ethnic flare.When it comes to holiday gatherings we have lumpia, enchiladas, mochi, adobo, sashimi, and a traditional turkey dinner (p.s. I have a large family and that sashimi is fresh, as my uncle is an avid fisherman).
• Check out your cupboards. Plan your side dishes by checking out your cupboards. If you have a can of green beans, a green bean casserole could be a start. Or a can of chickpeas, you can easily make hummus for a starter. Then start looking at your grocer’s sale ads to start saving on the other necessary ingredients.

Free Shipping Day 2010

On Friday, December 17, an estimated 1,000+ participating merchants will offer free shipping with delivery by Christmas Eve. Check out Freeshippingday.com for more details.

Free shipping day isn’t the only perk. Did you know you can score unadvertised specials from 40 Merchants?

I am so happy to be able to share these unadvertised specials with you. Because fewer people know about the sale, Freeshipping.org betters their chances of closing the deal at cut-rate prices.

(Credits: freeshippingday.com, legendsofamerica.com, and inspireco)

Christmas on a Budget is an article from Money Funk

Over the Thanksgiving holiday I spent some time catching up with my oldest childhood friend. We used to ride bikes together every weekend in the small town where we grew up in South Carolina. After talking about our families and careers, Kate asked me why I think so many people mess up their personal finances. She wanted to know if I think bad financial role models are to blame or if the financially-challenged are just, well, dumb.

I havent seen specific studies about how IQ relates to financial literacy, but when so many Americans lack basic math skills it follows that those people would also struggle with a credit card statement or the terms of a mortgage. Econ4u.org, the Web site of The Center for Economic and Entrepreneurial Literacy (CEEL), has some sobering statistics:

• Only 59% of young adults between the ages of 18 and 29 pay their bills on time
• 30% of Americans dont know their credit score
• 25% of employees who are eligible for a retirement plan at work dont participate in it
• African-American students are only 80% as financially literate as white students
• 48% of American credit card owners only pay their minimum payment each month

I guess my friends question also comes back to the issue of nature versus nurture: Are you a product of your genes or a product of your environment? If youre organized and tend to be a planner, can you end up being good with money even if you grew up in the middle of a financial nightmare? And conversely, if your parents teach you how to save, invest, and manage money, will that information go in one ear and out the other if youre impulsive and never plan for the future?

Both of those scenarios happen all the time. I know people who would rather have their appendix removed than spend 15 minutes reconciling their checking account or creating a budget, even though their parents are very savvy with money. Its just not in their DNA to find personal finances the least bit interesting, even though they say that they want more financial security. Reforming someone who isnt concerned about good money management is more difficult than helping someone who genuinely wants to learn but who wasnt taught much about finances at home.

I believe that understanding your psychological relationship with money (what I call your money mindset) is so important for financial success that I devoted an entire chapter to it in my new book, Money Girls Smart Moves to Grow Rich. I wanted to address common issueslike thrill-seeking, poor-self esteem, jealousy, and feelings of entitlementthat can be the root cause of many terrible financial decisions that people make. Self-awareness about the bad habits that cause you to overspend or to delay financial planning is just as important as understanding the nuts and bolts of retirement accounts, for example. So I wanted to cover the whole enchilada. Taking control of yourself is the first step to taking control of your financial future.

The problem is that oftentimes the people who need the most help are the least likely to seek it. So what can you do if you care about someone whos on a self destructive financial path? Here are 5 ways to help someone whos financially-challenged get the information they need to make better choices for themselves and their families:

1. Have a financial intervention. For a loved-one whos got serious financial troubleslike out-of-control spending and dangerously high consumer debtgathering family and friends together to discuss the situation may be a solution. The purpose of an intervention is to communicate your concern and to help the person implement resolutions quickly. If no one is sure what to do, ask for their commitment to meet with a credit counselor or a financial adviser, make the appointment for them, and have someone attend the meeting with them.

2. Set up a financial dinner meeting. If a hard-core intervention is overkill for the situation, ask the financially-challenged person to have dinner with you. After youre together let them know that youre worried about their financial future and ask if theyd like to brainstorm with you about potential solutions. You could offer to set up a meeting with a credit counselor or a financial adviser and to go along if they need your moral support.

3. Create a financial book club. Financial books might not make for the most titillating group conversation, but reading and discussing a chapter or two a week is a great way to digest new information. Pick newly released books with up-to-date information and get together at friends homes or in cozy coffee bars to dish about what you want to improve when it comes to your personal finances.

4. Give personal finance books. Put a good book about money in someones stocking this year. Whether its Christmas, Chanukah, a birthday, graduation, or any special occasion, personal finance books and e-books make great gifts. Everyone wants to have more money and create financial securityeven if they dont act like it sometimes.

5. Offer up personal finance blogs and podcasts. Theres a treasure trove of free financial information thats waiting to be discovered online. Do a search for personal finance blogs in Google or money podcast in iTunes and youll see what I mean. You never know what media might spark a new interest for someone. So remember to share links to information that you enjoy with any financially-challenged person in your life.

Let me know if you have additional tips about the best ways to help friends or family improve their finances. If a particular tactic worked really well or went horribly wrong for you, I’d be interested to hear your story.

Get personal loans now, if you need money.