The financial problems which California faces is one that has been in the spotlight recently, for the current month the credit rating was cut to a lower investment grade. And because of facing the imminent issue of bankruptcy the governors and legislators took drastic action of selling some very valuable state owned land, released about 28,000 thousand prisoners and they also cut the state University budget by roughly twenty percent. And right now the state has obligated the 243,000 thousand workers three days out of each month.

In this day and age the state of California has the lowest credit rating in the whole of the United States. The last fiscal year was one to expect a deficit of about $24 to 428 billion dollars, and this started the whole reason for the marathon legislature. The general budget fund for the state is about $100 billion dollars, and the deficit was both complete and qualified. The last time the state was on top of its game was in the fiscal year of 1998 to 1999, but there are a number of different reason put forward to shed some light on the issue of the states misfortune.

The structure of the states tax is one of the main factors of this misfortune, the act of the proposition 13 was implemented some time ago to put a cap on the rising of property taxes. And for some various reasons the state has started to depend on its great margin of income.

KIPPERS – that’s Kids in Parents’ Pockets Eroding Retirement Savings to you and me – are the bane of older parents’ lives. KIPPERS in this country are costing their parents more than £2 billion a year!

Of course you love them. You want to help them, and when they’ve split up with their partner and need support bringing up their children, you should help where you can.

But now you should…

• Take a deep breath
• Remind yourself that you don’t want to be a burden to them later on but you will be if they take your money from you now
• Remember that you’re going to need a decent amount of money to retain your own independence for as long as you can

Sometimes even older children in their 30s and 40s need to learn lessons and be forced to stand on their own two feet. It’s up to you, but if you are at least aware of what’s going on – and the fact that you’re not the only one being leaned on – you can make a more informed decision about how to deal with your KIPPER.

Take action

Set some goals for yourself. Family is a priority for most people, but your childrens’ desire for the latest car, holidays or multiple career changes should not come above your need for financial security. What do you want to do? Would you like to increase your pension? Invest more? Take a once-in-a-lifetime holiday?

Sit down and share your plans with your KIPPERS. Too often parents, grandparents and their off-spring fall into a nasty cycle where KIPPERS take, take, take: abusing the Bank of Mum and Dad because the parents let them. Try to explain some of your needs and make quite clear what you expect of them. One action plan might be to be earning a self-supporting wage within a year; moving to their own accommodation within 18 months and becoming financially independent in two years.

If your children still aren’t getting it, or don’t know how to manage their own money, send them to ‘Money School’! In other words, get them financially literate so that they can learn how to set goals, clear debts, live within your means, save and invest for the future.

If all else fails, kick ‘em out! It seems harsh, but sometimes it’s the only way your KIPPER will learn how to be independent. It could be the making of them.

Let’s face it, we all need to save more money but it seems to be more difficult than it really is. By simply incorporating more and more of the following tips into your life, you may find that you could save thousands of dollars by the end of the year!

Saving money doesn’t need to be painful so here are just a few painless tips that will save you money:

Skip the Lattes – Avoiding the extra trips to the Starbucks or Tim Hortons will definitely help the burn in your pocket in the long run. You don’t have to cut it out all together however you should try to drink the office coffee or make your own coffee at home and take your morning coffee to go.

Make your own lunch – Lunch times can be a great networking opportunity for you and could improve your career and your social life but try to find a balance between making the connections and saving money. You may try making your own lunch 2 or 3 times a week and eating out the remaining times.

Cook at home – If your life is extremely busy and you’re finding it easier to just eat out for dinner then you may want to start off slowly by cooking a home meal once a week until it becomes habit. You can also try to make precooked meals for the week to make it more convenient for you.

Hold a garage sale – Go through all the stuff you have around your home that you haven’t used in over a year and could do without. You may just come up with about $1000 worth of stuff you can sell through a garage sale. You may also want to collaborate with neighbours and hold a street garage sale. If you don’t have many items you can sell, check with family who is not really interested in holding a garage sale and are interested in getting rid of any junk around their house. Remember: One mans junk is another mans treasure.

Buy used – Think of all the things that you can use that has been pre-owned such as a bicycle or baby stroller. Saving money on used items can potentially save you half of what you consume a year simply by buying second hand. There are many stores including online that will BUY and sell used items in great condition for half the price of a new item.

Watch for less – If you’re into watching movies at the theatre, try watching matinees as they are substantially cheaper than evening/night rates. Avoid renting movies from your cable provider or a Blockbuster. Try renting from your local library instead for little to no money. You’d be surprised at the selection they have..really!!!

Unplug – Unplug, unplug, unplug. Get into the habit of unplugging any appliance or lamp that you are not using. Keeping it plugged in whether it’s being used or not is actually consuming electricity and costing you money.

Bundle services – If you have your service providers scattered, you may want to consolidate for a better deal. Having your cable, internet, phone with one service provider will get you a better deal. You may even want to consider disconnecting your landline and using a cell phone if it’s feasible for your family.

Bottle your own water – You may want to buy bottled water every once in a while because it’s convenient but be rest assured that the drinking water in Canada is among the safest in the world. Maintaining clean drinking water is a priority for the Canadian Government so refill those empty water bottles using your tap as often as you can.

With a little imagination you can find more ways to reduce spending without making huge changes to your lifestyle.