Like most people I find balancing the household finances at the end of the month a struggle. With three children all under eight and me not in full time work we need to watch every penny and I have become adept at making the money last and would be described by the popular press as a “Thrifty Mum”. I am probably not alone when I’m not only able to list all of my direct debits but also able to say the amounts I pay each week for each of them and the day they come out of our bank account. The control this gives me allows me to avoid worrying too much as I couldn’t cope with the thought of not being able to do so and the crisis I would be in would threaten everything I and my husband have worked together for. I have become very canny at looking out for offers and religiously cut vouchers out of the newspaper and keep an eye out for when the deals are on at the local Tesco supermarket.
One of the most helpful ways of saving money I’ve come across in recent years is to use the comparison websites to make sure that you aren’t paying a penny more than you have to on your household bills. I will regularly log on and do a life insurance comparison or a check to see if our buildings and contents insurance can be bought cheaper than we have it already. Changing electricity and gas suppliers is always worth considering as they tend to put up prices for people who don’t switch providers like the banks and building societies do for those who don’t move their money to the best savings accounts. I believe that we can save about one month’s salary a year by switching or threatening to switch suppliers. Sometime purely mentioning the fact that you are about to change provider to your existing provider will mean that they will drop their price by a huge margin. Its well worth trying, the alternative is too awful to contemplate.
Americans hear a lot about the shaky outlook for Social Security. In the future, the federal program likely will play a smaller overall role in Americans’ retirement plans.
One way to fill in the gaps of a savings portfolio is to put money in annuities. With an annuity, you pay a premium in exchange for guaranteed income payments at regular intervals. It is most often used for retirement purposes.
The basic types of annuities are equity indexed, fixed rate and variable. The major advantage of annuities is that they all guarantee benefits such as tax-free growth, the ability to pass money directly to heirs or charities and an income stream for life.
Over the past few years, equity-indexed annuities have gained a great deal of popularity. They offer interest or benefits that are linked to an external equity reference – a stock index like the S&P 500, for example. But you get a guaranteed minimum return in exchange for a limited maximum return; that is, you get less upside, but also less downside, to your stock-market investing. Your principal is never at risk.
Fixed-rate annuities, on the other hand, guarantee an interest rate and a declared minimum. They have traditionally been the most popular annuities.
Variable annuities provide more options. They enable you to invest in stock, bonds, mutual funds and money-market instruments.
Reputable financial companies, like TrueYield Financial, want to make sure investors are comfortable when purchasing annuities. Here are some tips for the potential investor.
* Be sure the firm you work with is not limited to offering just one company’s annuities. There are many options available, so work with an agent that can get the one that best fits your needs.
* Understand what you are buying. Talk to your financial adviser or agent about which annuity may be right for your retirement portfolio. Fully understand the annuity contract you are considering.
* Define your goals. Annuities can be used to accomplish a number of financial goals. For example, they can supplement your monthly income or provide emergency funds. Decide which purpose your annuity will serve.
* Ask your agent if you have a “free look” period to review your annuity contract and make sure you have made the right decision.
* Investigate whether or not a bonus annuity is right for you. Bonus annuities credit premium bonuses to allow a retirement saver to make up for stock market loss or to provide an immediate boost to the account value.
Recently I almost lose my job. It is cause by some misunderstanding. Luckily the misunderstanding got resolved and I manage to retain my job now. I am not here to talk about what is causing that misunderstanding. But I wanted to talk about what is my backup plan if I were to really lose my job.
When I got the news that I will lose my job, the first thing that I can think of is, how am I going to pay my bills, daily expenses, house loan, insurans etc. Luckily from time to time, I had save some money for emergency purpose. I calculated that I can live without a job for at least 6 months. That made me feel relief a bit. Other than some money in my saving account, I have some money in the stock market and unit trust.
I also have some money in my house loan account. For you information my house loan account is the kind of flexible loan payment account. Whenever I pay more, the extra money will be used to reduce my loan principal outstanding. This will reduce the loan interest. But I can still withdraw that extra money out anytime if I need it. I thought this is a very good feature. Every months I will pay extra money to the loan account. I aim to settle the house in less than 5 years. So up to now, I have some decent amount of money in the account. It can be used as my backup emergency funds. At the same time it helps to reduce the interest on my housing loan.
Back to the main topic, I seriously think that we should have some backup funds for emergency purpose. Nowadays Most of peoples financial situation doesnt even allow them to live for 1 single month if they lose their job. You may think this is not necessary, but wait till you get hit. Then you will know how tough it is. I would say we should have some emergency fund that allow us to live for at least 6 months if we lose our main income.
Bad Credit Personal Loans have not only been designed to provide consumers with a personal loan despite their bad credit issues but these loans can also help you to get your credit back in good standing. Personal loans for people with bad credit can be used for any (personal) purpose and you can usually get your money in hand faster than a regular loan.
With the on-line availability of these types of loans you can avoid the hassles of going to different loan institutions when comparing personal loans. It is pretty easy with the aid of the internet, you can apply safely online at literally 100’s of lender websites. The interest rate charged by personal loan lenders may very depending on the type of bad credit personal loan you choose.
Secured Personal Loans
Secured bad credit personal loans are probably going to be the best choice because they can be taken on any amount (depending on your collateral) and their approval time is usually quite fast. Two choices for personal loans for bad credit are: one offers you fixed interest rate and the other, variable interest rates. Secured bad credit personal loans are usually easier to obtain than unsecured, if you have bad credit. The market for secured personal loans is getting larger every day. The rates of interest on secured loans are getting lower and lower because of the increase in the number of lenders and if you shop around you can find some incredible deals.
Unsecured Personal Loans
The Unsecured type of bad credit personal loans usually come with a much higher interest rate than what you can get with secured bad credit loans. The best part with bad credit unsecured personal loans is that you dont have to put up collateral (your house or car etc…) and be at risk of being repossessed if something happens and you default on the loan. The better your credit rating is, the better interest rates you will be getting for bad credit personal loans.
There are several options available for you if you are in credit card debt and do not want to declare bankruptcy. One option is obtaining a debt consolidation loan and closing all existing credit lines. Debt consolidation is where you take a new unsecured loan and use the funds to pay off your outstanding debts. All this does is revolve your debt so its not really a wise choice.
What an unsecured debt consolidation loan will do is consolidate all your unsecured debt and help you avoid bankruptcy. This new money can save you hundreds of dollars per month if you choose to use your loan to pay off existing debt – especially high rate credit cards. Even if you dont own a home, you could qualify for their debt consolidation loan. But dont forget now you will have to pay this loan back.
Debt consolidation loans are repayable over a longer term at a relatively low interest rate. This means that the monthly repayments are lower. If the loan is secured on your property then the interest rate and payments may be even lower.
But you must compare the pros and of debt consolidation loans before taking the plunge. There are two options for consolidating debts either you borrow money to pay off all your debts or seek assistance from a debt consolidation program. Which option will meet your needs has a lot to do with whether you can qualify for qualify for low mortgage rates on debt consolidation loans , and the total amount of debt you need to consolidate.
Borrowing for debt consolidation immediately eliminates multiple debt payments. All debt collection actions eliminated. Seeking debt consolidation services immediately decreases your monthly payments. It also brings to a stop, and in some cases, eliminates some interest and fees. All you do is pay ONE LOW monthly payment when choosing a credit counseling program.
Debt consolidation is an excellent tool that can help you manage and decrease your debt when you just can’t seem to do it on your own. There is no way that you can completely fix bad credit without the ability to reduce debt and pay your bills on time. However, once your debt has reached a certain level, this can seem almost impossible to accomplish.
A credit counsellor can provide you with the option of enrolling in a debt management plan, which provides immediate relief and allows repayment of debts without the high fees and negative ramifications of bankruptcy.
However, your choice has to be based upon your financial situation, as well as fit in with your own sitiuation. A debt consolidation program is the better choice of the ones given above.
Where do you keep your money that you set aside for annual or semi-annual payments or for emergencies where you need extra cash quickly? You dont want to draw funds from any of your savings or investment accounts there may be a penalty for early withdrawal or it might be financially disadvantageous at that time.
Most people just keep what they have in their checking accounts where it earns nothing or next to nothing. Some dont keep funds for emergencies and just hope for the best or depend on luck.
Luck always seems to be against the man who depends on it.
-Unknown
Heres another question. Do you set anything aside in case you need to pay the deductible on an insurance claim?
A good place to put funds for infrequent payments or for possible emergencies is in a money market account where interest rates are most often higher than savings accounts and are more accessible. Some banks offer even higher rates on Internet money market accounts. You really need to check your banks rates on various types of accounts to see which would be best. Its good to compare banks. There can be a big difference. Money market accounts require a higher balance, but the amount you will need to keep in it will more than meet that.
The good thing about money market accounts is that even though there is a limited number of checks you can write on it in a given time period, it is usually more than enough for most people.
When you plan your budget, you will need to make payments to this account until the balance is sufficient to cover your home and auto annual or bi-annual payments and cover all your deductibles for your home, auto, medical and dental policies. Once this account is fully funded, the interest earned will be able to reduce your monthly budget payments that go to replace that which was used for insurance payments or for emergencies.
With this account in place, you will be able to take the highest deductible allowed thereby reducing your monthly insurance payment. If you pay your auto insurance quarterly or twice a year, you now will be able to make an annual payment, saving on the service charges.
Money market accounts may not earn the kind of return as a mutual fund or other types of investments but it is definitely better than most savings and checking account interest rates. Money market accounts have the advantage of easy access for your infrequent financial needs.
With a little self-discipline, you can give yourself some efficient financial security by enabling your money to work for you in several ways.
For the debtor who is already at the end of his rope and trying to figure out how to get out of debt, the last thing he needs to worry about is whether the debt counselor he has chosen to help him is going to make his problems worse. He needs to be assured that he is not making a mistake by choosing debt counseling over bankruptcy or working out a settlement with the creditors.
The first thing one should do to gain some certainty that the debt counselor they are planning to choose is reputable is to check with the Better Business Bureau. Of course, this isnt a guarantee since they only have on file information from people who have filed complaints, so if its a new company or one who has had no complaints filed against it, you really arent going to know. Nonetheless, this is the best tool you have, and you should utilize it to the greatest degree possible.
Another way to find out the reputation of a debt counseling service is through word of mouth. If the company is reputable, they will not mind providing you with information about other clients. Of course you want to be sure that they are not giving out false or unsolicited information. If they are really reputable, they will likely have something on their application allowing them to release information to other potential clients.
If its a local company, perhaps you even know people who have utilized their services. If they are not willing to give you references you can check, then youre much better off to move forward to someone who is willing to cooperate with you. In most, though not all, cases, refusal to provide references means there is something they are trying to hide, and this is not the kind of person with whom you want to do business.
The Internet is a wonderful place to search for information on various subjects, and if there is a company of questionable reputation, there is more than likely a forum that has been set up to complain about this company. Strange as it may seem, people on the Internet actually set up websites, forums, and groups on Yahoo and MSN to do nothing more than complain about companies they feel have treated them unfairly.
Utilize all the tools that are at your disposal, and if its a local company, be sure you check with all of the local agencies including the Attorney Generals Office who would know of any illegal activity that has been reported. If you have come this far, you do not have the funds to be taken for a ride, so you want to be very careful to whom you give your money. Its not going to help your situation if the person you choose doesnt do the job they promise to do, and you cant even collect damages in court if they ultimately close down their operation.
Choose a company who has been in business long enough to have a record of clientele, and choose one you feel is looking out for your best interests and not just wanting to take your money. Choose a debt counselor as carefully as you would choose a babysitter for your newborn baby.
Tips For Responsible Credit Card Use When You Have Bad Credit
If your current credit situation is not as good as it could be you need to be very responsible when using credit cards. While irresponsible spending habits are not always the cause of bad credit no matter how you ended up in this situation the privilege of credit card use should be taken seriously to prevent going into further debt.
Here are some great tips for responsible credit card use.
If you have several credit cards look into transferring the balances to one or two that have the lowest interest rates and then get rid of the other credit cards. By limiting the number of credit cards that you own you will not have to worry about juggling a repayment schedule that you cant afford to keep up with. Once you have the balances on your remaining credit card under control then try to limit your purchases to things that you really need.
Refrain from taking out cash advances on your credit card if at all possible. Credit cards most always charge huge interest rates on cash advances so if this is a common practice for you it will certainly drive you further into debt and if you already have bad credit it will only make things worse. If you do need to take out a cash advance on your credit card make sure you will be able to repay it as soon as possible.
Repay you credit card bills on time. This is simple common knowledge but is often overlooked by many credit card users. Document your payment schedule and follow it to the letter. This will not only help you build a solid history of good credit it will save you the stress of worrying about getting your credit card bill paid.
Developing responsible spending habits with your credits cards when you have bad credit will help you regain good credit standing and will help you from going further into debt.
2007 All Rights Reserved
Wealth is simply the accumulation of money, and it can only be created by the amount of money that is received and never spent. If you want to build wealth, then anytime you receive money: dont spend all of it. Sure it is a very simple concept, but it is very difficult to continually achieve. Luckily there are readily available allies to help you: find some compelling reasons to start saving, build it into a habit, watch the results of your efforts build, and set some financial milestones to reward yourself.
Setting aside a percentage of any money that you receive is the best method to follow through and build the habit of saving money. There are a few misers among us who find saving easy to do, but most people want to spend far more than is earned; let alone have the discipline of spending less than what they earn. So it starts as an uphill mental and emotional battle that gets easier by following through with the habit, and seeing the results of your effort. Spending less than what you earn every week, every month, every year, is the only way to amass money.
How much money should you set aside to build up savings? It should be a percentage so that you automatically move it into a separate savings account anytime you receive income, without exception. It is my experience that the range of 3% to 10% is the most successful starting percentage for people who continue saving over long periods of time. Saving only 3% is so small that it is nearly painless to even the lowest income earners (this is actually where I began years ago). Selecting a percentage under 3% accumulates to such a tiny amount of savings that I havent heard of anyone sticking with it. And starting out by setting aside over 10% is too painful for even high income earners to withstand, because they are so accustomed to spending on every whim. As you repeatedly save a set percentage rate, it will become more habitual, automatic and expected. Then youll be ready to increase your percentage rate. And the higher the savings rate, your growing pile of money will create more motivation to continue to save. This summer, I spoke with a successful saver who lives very well on only 30% of his income. Because he saved diligently to continually buy rental homes, after a couple decades he earns over a million a year in rental income by Ashville, North Carolina.
In the fragile first years of saving money, it can take only a single wrong financial move to wipe out everything that youve saved so far. And the most common wrong move doesnt look like it when it is occurring. This draining move can also start insidiously small and build a different habit, the wealth-destruction habit. You know the problem: pay your credit card balance in its entirety, every month, without exception. As an example, if you havent saved money for a vacation before you depart, and then charge it all to your credit card, there is a giant probability that you wont pay it off for a very long time. The credit card companies know this and they are extracting interest dollars from you instead of earning interest yourself. Youve shifted to the dark side of wealth destruction where it is more common for your credit card balance to grow than shrink.
Lets get back to building your wealth. Once you start setting aside the savings percentage that youve decided and opened a dedicated savings account, you need to closely review your account statements for motivation. Reviewing the progress that youve made so far youll see how you are moving toward financial goals can be self-reinforcing. And another motivator is rewarding yourself by spending some money on yourself when youve reached certain milestones. For example, you could start with a goal of accruing $500, and reward yourself with something meaningful; and then each time you double your amount of savings you get another reward. My advice is to at least begin with a savings percentage, even as small as my 3%, and allow this simple concept be of great financial benefit to you.