So you are an acclaimed spendthrift and saving is just not in your genes. A shopkeeper’s favorite customer, your savings account is always in a dry spell and sales exhaust your paycheck. If you feel that you possess any of the described symptoms, then I must congratulate you; after all, you have the potential of becoming the next financial disaster. Here in this article we have discussed five ways which will surely turn you bankrupt:

1. Throw a party after every paycheck: Who doesn’t love parties? If you are a hardcore party animal who can’t resist to party on the first of every month then it’s a frank warning that you are heading towards your financial doomsday. We all have temptations and window shopping is certainly de-stressing but an unhappy fact of life is that the mall is not the only place to spend your salary. Those who take this advice have enough savings for rainy days while others face a bleak future.
2. Make deals with family and friends: It is very true that blood is thicker than water but even truer is the fact that money rules the roost. Doing deals with friends and relatives not only puts your relations in danger but is also very draining for your finances.
3. Fall in love with EMI: If EMI, or equated monthly installments, tops your budget planning and taking loans is your second nature then probably you are the worst financial planner alive. Taking a loan might be necessary but is not to be cultivated into a habit.  Instead of using your credit card or debit card, start using real money. Start saving your funds and use them instead of borrowing money. This will not only be a wise decision but will also guarantee you a safe future.
4. Be a guarantor for your friends: Friends are special but cosigning a loan for every second friend is not that special. Being a guarantor means added responsibility, however trustworthy your friend might be.
5. Do not plan for your retirement: You are just thirty and retirement is ages away. Planning a retirement fund is certainly not on your priority list but a day will come when you will have to face this day. Not having sufficient funds in your old days might present you with all new problems which you cannot imagine now.

Since you now know the debacles of a financial failure, be wise enough to avoid them. Check out the articles on Jonny Pean's personal finance blog at financewand.com.

Guest post by Mark Parker

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Mark Parker is a contributory writer associated with the Debt Consolidation Care Community and has written several articles for various financial websites. He holds his expertise in the Debt industry and has made significant contribution through his various articles.

Giveaway Reminder: 5 Winners of Extreme Finance Package

Seven Resolutions to Begin in 2010

1. Control spending: If you spend less you'll have more money available to pay down debt and save for the future. Write down your expenses for a month to see where your money is going. You might be surprised by how easy it is to find places to scale back.
2. Create a debt repayment plan: If you carry credit card debt, write down everything you owe and make a plan to pay it off. Start with small items you can act on right away–it will make tackling the bigger debt easier. Also, try buying with cash only. It’s a sure-fire way to prevent increases in your credit card debt.
3. Set up auto-savings plans: Arrange with your bank or another financial institution to have a set amount deducted from your checking account to a savings account each pay period. Of the Americans who have been able to contribute to emergency savings funds, automatic withdrawal is the most popular method, according to the Consumer Federation of America.
4. Boost retirement savings: If your employer offers a 401(k) plan, increase your contributions. If you don't have an employer plan, open an Individual Retirement Account (IRA) and arrange for contributions to be made automatically from your checking or savings account.
5. Create a long-term plan: Write a list of your long-term goals, such as buying a home or saving for college or retirement. Visit the Life Events section of Smart About Money for concrete tips on accomplishing those goals.
6. Protect Yourself: Be prepared for the unexpected by making sure you, your family, your assets and investments are insured and fully covered. If you do not have a will, make 2010 the year you establish a life plan.
7. Find a financial buddy: Share your financial resolutions with a friend, colleague, or family member, and you’ll be more likely to keep them. Find someone else who wants to turn around their debt or cut their spending, and establish a mutual support system.

Tackling the Little Things

Getting debt under control and improving savings habits are two big steps to a better financial life, but those actions only are possible if Americans have more specific aspects of their financial lives under control.

While the economy recovers, job stability remains a vast and very valid concern. Without income, saving stops and debt can spiral. Even if they still have a job, Americans need to assess their marketability and increase their professional value by networking and upgrading job skills.

If someone experiences a job loss, it’s important to be proactive. They should negotiate severance pay, file for unemployment benefits and look into alternative insurance plans, because living unprotected will risk their family’s security. Individuals who have lost their jobs also should immediately start looking for work. Most states allow people to work a certain number of hours, and earn up to half their previous income, and still retain unemployment benefits.

Those who are struggling financially also might find it difficult to pay their mortgage. If individuals have missed a payment, they should immediately search through financial records or identify spending habits to find out what caused the missed payment. They also should contact their lender, who is required to examine their client’s financial life before taking any drastic action against the client’s home.

Even without a job loss or mortgage trouble, it’s time for Americans to involve their entire family in assessing the household budget. Tracking spending for a month will reveal some easy places to cut back without causing any significant lifestyle changes. Turning off lights and appliances, cutting down on weekend trips and dinners out and eliminating habits such as smoking all will help reduce household spending. And, it will give the family a head start on saving in case of emergencies.

For Americans to recover, maintain or rebuild their financial lives after this recession, they need to make permanent changes so they’re prepared for any future trouble in the economy. Identifying areas in which they are struggling, scrutinizing bills and spending habits and prioritizing aspects of their financial lives will help individuals create a proactive financial plan to last the whole year, and beyond.

Next Up: Seven Resolutions

Changing the Way We Save

Although pre-recession Americans spent or consumed much of what they earned, the recession did provide a teachable moment.

In the 1980’s, Americans averaged saving 10 percent to 11 percent of their disposable income. By 2007 the Federal Bureau of Economic Analysis reported that figure dropped to a low of 1.7 percent. Only in 2009, in the midst of a recession that had Americans worrying about their jobs and futures, did the savings rate increase, but only to 5 percent.

It’s a start, but that rate is still less than half of what it was a quarter century ago. And it’s leaving a majority of Americans unprepared for retirement and emergencies.

“Americans are significantly ‘under saved’ as they near their retirement years,” Neiser says. “They’ll need at least 50 percent to70 percent of their pre-retirement income to live comfortably in retirement, and most aren’t even close to having the financial cushion to do that.”

In 2009, only 13 percent of workers questioned in the Employee Benefit Research Institute’s (EBRI) annual Retirement Confidence Survey said they felt very confident about having enough money for a comfortable retirement. That’s the lowest percentage since EBRI first asked the question in 1993 and a 50 percent decline in confidence since 2007.

The recession also taught us the need for having an emergency savings for our financial and psychological well-being. Having a cash nest egg can help consumers better weather the recession, and in the future, it will enable them to avoid accruing debt when unexpected expenses occur. According to the Consumer Federation of America, those with an emergency savings of more than $500 are less likely to worry, lose sleep, suffer poor health and decrease productivity at work than those who have saved less.

“It is the perfect time for individuals to take a hard look at their finances, spending a little less and saving more,” says Beck.

Up Next: Tackling the Little Things

The Best Recovery for a Financial Hangover

Resolutions Can Provide Rebound in 2010

For most Americans, the New Year is a time for resolutions. Resolving to become a better person is admirable. But as we emerge from the recession, from which some of us are still reeling, it's time for changes in financial habits that are permanent and have more staying power than the average beginning-of-the-year promises.

Before the recession, spending and consumption were the way of life in America. But during more recent, leaner times, we have been forced to face the damage done by unabashed spending and financing "the good life" with high-interest credit cards. And the damage remains.

“During this recession, all of us learned something about credit, debt and how and for what reason we spend money,” says National Endowment for Financial Education^® (NEFE^®) president and CEO, Ted Beck. “It would be a shame if we go back to our old ways of accumulating mountains of debt and saving little if any for our futures as things get better.”

As the economy continues to rebound in 2010, it may be tempting for Americans to ebb into the bad habits that led so many of them into financial trouble. That’s why in 2010, it’s important to evaluate your financial life and take steps to be better prepared should the economy once again fall flat.

Managing Debt

First things first, 2010 will mean significant changes in the way credit cards are provided by banks and accessed by consumers.

The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 gives consumers more control over their relationships with credit card providers. As part of the CARD Act, back in August, credit card companies were required to provide consumers with 45 days’ notice before increasing rates or changing any significant terms of the credit agreement and to mail statements at least 21 days before payment is due.

These changes will help Americans to start paying off their average $8,000 in credit card debt, or $5,612 per card, according to the credit-reporting agency, TransUnion. However, more diligence on the behalf of consumers is necessary to get the most out of the legislative changes.

"[The CARD Act legislation] will level the playing field between the credit card companies and the consumer to have a real fair shot at planning and taking action on their personal finances,” says Brent Neiser, CFP^®, and NEFE director of Strategic Programs and Alliances. “Consumers will have to be proactive though to get the full benefits of the CARD legislation. This means being diligent with reading and fully understanding all correspondence that is sent from your financial institution.”

On February 22, new rules will kick in including: a ban on retroactive rate increases on existing balances, except in cases of severe default; better disclosure in credit card terms so consumers can easily understand the contract and avoid unnecessary costs; and protections for college students and marketing done on campuses. For more information, visit here.

Next up: Changing the Way We Save

Control spending: If you spend less you'll have more money available to pay down debt and save for the future. Write down your expenses for a month to see where your money is going. You might be surprised by how easy it is to find places to scale back.

Create a debt repayment plan: If you carry credit card debt, write down everything you owe and make a plan to pay it off. Start with small items you can act on right away–it will make tackling the bigger debt easier. Also, try buying with cash only. It’s a sure-fire way to prevent increases in your credit card debt.

Set up auto-savings plans: Arrange with your bank or another financial institution to have a set amount deducted from your checking account to a savings account each pay period. Of the Americans who have been able to contribute to emergency savings funds, automatic withdrawal is the most popular method, according to the Consumer Federation of America.

Boost retirement savings: If your employer offers a 401(k) plan, increase your contributions. If you don't have an employer plan, open an Individual Retirement Account (IRA) and arrange for contributions to be made automatically from your checking or savings account.

Create a long-term plan: Write a list of your long-term goals, such as buying a home or saving for college or retirement. Visit the Life Events section of Smart About Money for concrete tips on accomplishing those goals.

Protect Yourself: Be prepared for the unexpected by making sure you, your family, your assets and investments are insured and fully covered. If you do not have a will, make 2010 the year you establish a life plan.

Find a financial buddy: Share your financial resolutions with a friend, colleague, or family member, and you’ll be more likely to keep them. Find someone else who wants to turn around their debt or cut their spending, and establish a mutual support system.

NEFE operates the site Smart About Money and have developed a series of articles filled with tips to help you make 2010 the year of financial freedom.  You can also find Economic Survival Tips, worksheets and articles focused on financial education related to housing, spending, credit and job change. Follow NEFE on Twitter at @nefe_org.

It's hosted by Amazon and it's filled with hundreds of personal finance books from authors like Jim Cramer, Andrew Tobias, George Soros, Peter Lynch, and Jim Rogers.

Check it out. There's still time to order before Christmas (I can say that, right)!

Here are some fail-safe tips from FICO Credit Guru Shon Dellinger to help enthusiastic shoppers stay financially sound:

1. Be Smart with Credit. Using a credit card is ok – experts agree having 3-5 credit cards helps your credit, if used responsibly. But carrying a balance on your credit card leaves you (1) stuck paying interest that could cost you, in some cases, double or triple the cost of those gifts in the long run and (2) with a much lower credit score, which could jack up interest rates on your credit cards and jeopardize your chance of getting lines of credit elsewhere (buying a house, a car, etc.). Services like FICO Score Watch combat this by providing emails or texts alerting you to any changes in your FICO score (either positive or negative), and notifying you when you’ve qualified for a better interest rate. A credit score increase of 30 points will save the average consumer $105 per year.

For more information on FICO Score Watch, go to: www.myfico.com/Products/ScoreWatch/Description.aspx.

2. Resist “Short Savings.” The salesperson at your favorite department store offers you an instant 20% savings just for opening up a credit card in their name. While that $20 seems tempting at the time, it can quickly put you in debt if you’re not careful. The temptation of the deal is also one reason why the average consumer has a total of 13 credit cards. Opening new lines of credit can also hurt your credit score, so make sure the card meets your overall needs and not just your desire for quick savings.

3. Don’t Wait Till April! Many holiday shoppers use their Tax refund to pay off credit card balances left over from the holidays, which can be incredibly expensive, not to mention detrimental to your credit standing. A credit card balance of $500 dollars from January until April will cost you $237 dollars based on today’s average credit card interest rate.

4. Get Info on Your Credit. Go to the myFICO Forums, where you can connect with thousands of other people all in your same boat. Don’t wait til after the holidays, when the damage is done. FICO is offering 30% off all products on its web site if you enter the discount code MYFICO HOLIDAY.