Financial Fitness - Are You Exercising the Right Muscles to become Financially Fit?
January 23, 2008
Are your financial muscles well toned and healthy or flabby and weak? Do you want to change your relationship with money so you can have control over your financial future or do you want to continue to complain that you don’t have enough? Exercise these 10 muscles to achieve Financial Fitness.
1. Know your current situation
Putting your head in the sand will only give you an ache in the neck, not control over your finances. Make sure you know exactly how much your total income and expenditure is each month and have a clear picture of what you are spending your money on.
2. Have clear financial goals
How much will you need for next year’s vacation? When will you need to buy a new car? How much will it cost to give your children the best education? Write down your short, medium and long term goals and work out how much each will cost, how long you have to save for it and how much you will have to put aside each month in order to get what you want.
3. Maximise your current situation
How To Save Money On Credit Cards
January 22, 2008
Some credit cards offer a cash advance option. But how good a deal is this?
Not very. In fact, it can be downright expensive.
Why?
Because every time you use your credit card to withdraw case, more fees kick in:
- Cash advances can carry an upfront fee of 2 percent to 4 percent of the amount advanced.
- The advances have a higher interest rate than regular card charges.
- Interest charges begin to mount as soon as the money comes out of the ATM.
- Many issuers also require you to pay down the balances for purchases before you pay down the higher-interest cash advance balance.
Here’s an example of how these fees kick in:
Assume you bought a television for $500 on your card and then took out $50 in cash. Even though you pay the $50 back the next day, you still lose your interest-free period because the credit provider deems you pay the cash back last.
As a result you will still owe the $50, but you will now only owe $450 on the $500 worth of purchases.
Home Mortgage Refinancing ? What?s in Your Contract?
January 21, 2008
Are you one of the millions of Americans who will be refinancing their home mortgage loan this year? When you sign your contract and the other papers for your refinance, will you know what your signing?
Your Contract: This one is simple, but I would guess very few people do it. READ THE ENTIRE CONTRACT. It seems that usually the home mortgage refinancing contract is written with the preparer pointing out the obvious terms, i.e. sales price, earnest deposit, closing date, inspections, etc., but all of the language in the contract is binding; not just the part that your read and/or understand. Read it and if you don’t understand it, seek legal counsel. This is the agreement for every part of the transaction. How taxes will be prorated, who pays for what, when do you agree to close the transaction and when will you be allowed to take possession of the property are all in your home mortgage refinancing contract.
If your purchase is new construction there are often many specific clauses to your sale. Remember the builder probably sells many more houses than you buy and knows what language to include in his contract to protect and benefit him. Make sure this language is something you are willing to abide by.
If You?re Looking For Low Cost Car Finance, Loan Companies Offer Some Great Deals
January 20, 2008
These days having a reliable and safe vehicle to drive is more important than ever. With public transport packed to the hilt and often unreliable, many people have learned to rely on their vehicles to get to college or work, pick up the kids, do the shopping and even to perform their jobs. That’s why things can get really tough when you find yourself with an unsafe or unreliable car.
When it comes to affordable car finance loan companies in the UK offer some great deals to suit all budgets and needs.
Whatever type of car and price you are looking at, a loan company should be able to help you by providing low cost finance. Of course, the amount that you will be eligible to borrow for your car will depend upon your income and employment status amongst other things.
If you really want to keep costs down when buying a new car, try and go for a basic model ? however nice the thought of driving the latest sports model might be, the insurance costs along can end up being financially crippling.
10 Tips To Prevent Credit Card Fraud
January 20, 2008
Imagine opening your credit card statement one morning and discovering to your horror that you suddenly owe thousands of dollars - on purchases that you never made.
Impossible?
Credit card fraud on the rise, so you need to treat your card and its information with extreme care.
Here are 10 tips to help insure you’re not the victim of thieves and fraudsters:
1. Sign new and replacement cards immediately.
2. Destroy the old cards by cutting them into pieces and shred all old receipts and bills.
3. Don’t fax your credit-card number, if possible. Remember, the faxed document could remain in sight at the other end for long periods of time.
4. Don’t give your card number over the phone unless you have initiated the call.
5. Destroy any carbon paper if it’s used as part of the credit card transaction. Somebody can grab it and forge your signature.
6. Don’t respond to any “scam” e-mails requesting your credit card number.
7. Never send your credit card number in an e-mail to anyone!
8. A good option for discouraging theft is to choose a credit card that includes your photo and signature on the card.
Self Employed Mortgage Loans - A Survival Guide
January 19, 2008
When you’re self employed you have numerous advantages. As you are a free agent, you will write off every deduction you can on your tax return. You acquire the potential to earn extra income much more so than someone who is employed by someone else. The best part is that you are the gaffer, the boss! On rare occasions, being freelance has some drawbacks. One is when you go to get finance for a property or a large purchase. However, here are some items to know that could help you prepare for the mortgage loan process. A self-employed mortgage loan survival guide, if you will.
While confirming your income - the average lender will need to be made aware of at least 2 years of self employment history, occasionally they will request 3 years. They will ask to see this history verified in tax returns, generally. Occasionally the lenders may figure your income as being the average income you claimed on your income taxes as profits, not your gross business income. Another time the lender may figure your income as the lowest of the two years and every now and again as the highest of the two years. Talk to your mortgage professional or lender and find out their verification criteria. For instance, some lenders may calculate a part of your write-offs or deductions and work it back into your income. There are ideas of additional ways that a lender may be able to verify your income and if you are a free agent it may help you to be able to show a supplementary of your income.
Unsecured Loans: The Lesser Known Sibling Of Secured Loans
January 18, 2008
What is man’s greatest invention?
Some of the latest gizmos would immediately crop up in our minds as the most probable of the answers. But do these gizmos really deserve the veneration that they receive. True, they have revolutionized lives. But they have been characterized with impermanence. Another new invention and the earlier invention is nowhere to be seen.
One invention of man which has withstood the challenges of time is a home. The earlier users of home might have constructed it just for shelter purposes. But it has assumed new roles in a person’s life. Besides providing shelter, it has become an indispensable status symbol. Home has continued adopting new fashions and styles, and thus still holds the same esteemed position that it held in the primitive ages.
People revere their houses, and would think twice before taking any step which imperils its existence. Since secured loans entail keeping home as collateral, most people who value their houses would dread taking the loan. A single default may lead to ones house being repossessed. And with this all dreams which the customer and his/ her spouse may have dreamt with their home as a scenic backdrop fades forever.
How to Shop Around for the Cheapest Mortgage Deal Online
January 17, 2008
Before you start shopping around for a mortgage, you need to establish exactly what you want so that you do not waste your time looking at deals that will not save you money. You should also learn how to compare mortgages or choose what features of the finance package are important to you.
The first step is to ask your friends or family for recommendations of potential mortgage lenders. Then contact several lenders and let them know that you’re shopping around for the best rates. You may want to discuss your needs with banks, credit unions, mortgage companies and brokers. Comparing loan plans or packages will help you get a better deal.
Your next step is to read expert opinions in national newspapers and magazines. These publications usually publish editorials that rate mortgage and loan deals from various banks and lenders. This information will give you a better idea of what to expect.
Rewards Cards - Are They Right For You?
January 16, 2008
Rewards cards have become the latest rage in the credit card industry. In the past, consumers shopped for credit cards that offered the lowest interest rate. Next came cards with low interest rates and no annual fees. Today, consumers can shop for cards based on what type of "reward" they can earn for using a specific issuer’s card.
How does a reward program work? Typically, the program awards points, “dollars” or a cash value based on the amount you charge. The rate at which you collect points varies depending on what you charge or where you charge it. Some programs offer extra points for using their card at a specific place such as a supermarket or fast food restaurant or for certain items.
Some programs offer a variety of rewards. Consumers can earn meals, tickets to sporting events, airline tickets, electronics, or even create their own reward program.
The goal is to get you the consumer to use your credit card as much as possible. Why? FEES! The credit card issuer makes money from two sources each time you use their card. First, from the merchant who pays the issuer a merchant transaction fee and secondly, from you through finance charges and late fees.
Creating A Household Budget
January 15, 2008
Creating a budget can be a very difficult task. Although we as consumers know that we need to pay our bills, buy our necessities, and put money away for savings, we don’t really know how to start.
I know from personal experience how hard creating a budget can be. In the beginning stages of my road to financial freedom, I would write all my expenses down on paper and noticed that I had little and sometime nothing left over to save. I tell my clients that seeing everything on paper is only the first of many reality checks while getting their finances in order.
I think all advisors in the financial world can agree that using categories helps tremendously. Everyone will not have the same categories thus making every budget unique.
A category simply is nothing more than a grouping. Instead of listing each credit card bill separately on my budget, I will give all of my credit cards a category, for example I will list it as "debt". Some popular budgeting categories are housing, savings, utilities, donations, healthcare, miscellaneous and income to name a few.
