Understanding Term Life Insurance and Getting Quotes
Life insurance can be a very confusing topic to say the least. But with a little bit of research you can become more comfortable when it comes time for you to purchase some. The most confusing part is that there are many different types of insurance out there. Knowing what purpose they all serve and knowing which type is best for you is the tricky part.
Basically, there are two types of life insurance; permanent and term. There are many different groups within these two types but let’s just discuss the main types for now. Term life insurance is just as the name implies. It is sold for a term of years or for a certain amount of time, just like leasing a vehicle. It is usually sold in 10, 20, or 30 year terms depending on your individual situation and your budget.
Permanent life insurance is also known as whole life insurance. It builds cash value that is then used when a claim is filed. It is more like a lifelong investment but is much more expensive than term life insurance. The problem is that it is so costly that it can scare people off. Many people do not realize that there is a more affordable alternative to costly whole life insurance policies. They may see the huge rates that whole life carries and they automatically think they can’t afford life insurance and may even leave their loved ones unprotected which is never a good idea.
This is where term life insurance comes into play; it is a cheaper alternative to whole life and will allow you to cover the ones you love. Term life is simple to understand. You pay a set monthly premium depending on the length and amount of coverage and that is it. You pay monthly for the predetermined term and you are covered. Terms are normally sold in blocks of tens and insurance coverage can vary from $100,000 up to several million.
Finding out what length of term and type of coverage you can get and at what life insurance rate has never been easier. The Internet allows you to go online and request term life insurance quotes at your convenience from the comfort of your own home. Some of the forms may only take 30 seconds to fill out with some common personal questions like name, age, sex, height, and so on while others may be a bit more detailed asking for your current health condition and whether or not you use tobacco products.
It is best to find reputable insurance companies to request life insurance quotes from. Obviously, you want the best rate possible but service and professionalism should also be a concern. It is fine to get an instant life insurance quote online just to see where you stand but from there it is best to actually speak to a representative to iron out the details and to see how they can help you. Life insurance quotes online make it easy to plug into your monthly budget quickly so you can discuss it with your significant other before speaking with anyone.
About The Author:
Brian Greenberg is the owner of the life insurance website, CompassQuote. To get a universal life insurance quote or term life insurance quotes, please visit his website. Buying term life insurance can be a scary process, but it does not have to be… Simply fill out the form on Brian’s website, to get life insurance quotes online: http://www.compassquote.com/
Read more of Brian Greenberg’s articles.
The Decline in the Personal Savings Rate – What Happened to the Discipline?
As more and more American baby boomers are nearing and entering their retirement years, many of them are concerned about whether their retirement savings will last them long enough to ensure their current quality of life, and rightly so.
During my work as an investment advisor and in my travels and contacts with people in all facets of life, I have seen first-hand how the lack of savings by Americans for their retirement can lead to disastrous effects, both on their financial situations, but on their emotional well-being as well. The data speaks for itself. According to the Organization for Economic Co-operation and Development (OECD), the net household savings rate as a percentage (%) of household disposable income for the US in 2008 was 1.6%. That is to say, that on average American households saved only 1.6% of their disposable income. As compared to other developed nations, the US has a very low savings rate. As a reference, the savings rate for some of these developed companies is as follows: Germany (11.6%), France (12.7%), Italy (9.2%), Switzerland (12.6%) and Japan (3.3%).
As Americans, why do we not save more of the money we work very hard to earn? I firmly believe this is a result of our lack of financial discipline. What I mean by lack of discipline is as it relates to making the right decisions as to our lifestyles, spending decisions and to a lesser extent our careers.
Here is an example: As an advisor, I frequently meet and consult with wealthy individuals and many, to my surprise, have earned their wealth on their own. It was not handed to them by their parents. After meeting and working with affluent people, I immediately began to notice similarities between many of them.
1. They were savers. They saved a much higher percentage of their disposable incomes as compared to the average American.
2. They live well below their means. I cannot stress this enough. The most common characteristic of these individuals was they were not concerned about \”Keeping up with the Jones,\” but rather live a relatively conservative lifestyle, focused on achieving financial independence.
Naysayers will argue that while these are valid points, these individuals were lucky enough to have good high-paying jobs. I would agree that a stable high-paying career is definitely a significant component in helping achieve financial independence, but do not believe that this factor, and this factor alone, helps individuals achieve this independence. There are many many individuals with high paying jobs, many of them in stable positions, but living paycheck to paycheck. This lack of discipline on the part of these individuals can at a minimum leave ill-prepared for their retirement, or worse in the long run, possible financial ruin.
As I write this article, I am reminded of something that my father used to say all the time (and still does, although to a lesser extent) – \”It doesn’t matter how much you make, but how much you save.\” As a young guy, when I was working in investment banking, this advice went \”in one ear and out the other.\” But as a guy in my 30s I really appreciate this line of thinking and how it can really affect Americans for the better.
Consider this: the effects of saving $500 per month and investing those monies have a very large potential for growth in the long run. Assuming an 8% average return on investment, by saving $500 per month, in 5 years it grows to $40,000, 10 years – approximately $100,000, 20 years – nearly $302,000 and in 30 years – approximately $740,000. The effects of compounding still astonish me to this day. If a 30 year old individual starts saving $500 per month today and does so for 30 years, and retiring around the age of 60, he could have a very nice nest egg in addition to his social security income (if it is still around in 30 years), his pension plan (from his employment, and or 401k, if applicable).
Now for some more recent data (which is not very meaningful, in my opinion). The US Bureau of Economic Analysis recently reported that the US savings rate as a % of disposable income has been increasing over the last few quarters. In fact, from the first quarter of 2008, the savings rate has been increasing to approximately 4.5% as of the third quarter 2009. While, in my opinion, this is good, I believe this will not last. Data has shown that during periods of economic downturns, we see savings rates increase dramatically, only to see them fall once the economy begins to come back. If we continue saving just a little more than we have been saving on average, it could make a meaningful difference in the long-term financial health of many.
I am a firm believer in saving, especially as it pertains to retirement and allowing the possibility to enjoy retirement years in relative comfort. The purpose of this piece was not to criticize us as Americans on our lack of financial discipline as it pertains to saving, but to show us that many of the financial difficulties people face in their retirement years can be avoided with some careful long-term planning.
About The Author:
Tome Tomaj is an investment advisor representative and a financial markets investor. He is the founder of White River Capital Management LLC, an independent registered investment advisor. White River specializes in the management of separately managed investment accounts for individuals and institutions. To find out more about his investment philosophy and sign-up for his FREE market commentaries and articles, please visit: http://www.wr-cap.com/signup.html
The Effect of Inflation and Deflation on Retirees
When we worry about how long our retirement income will last, we consider so many factors. The current economy is causing a drain on 401(k)’s and IRA’s. So we have become much more cautious about withdrawing money to use it as part of our pensions. Now we are limited to living within the Social Security benefits of those 65 and older. Social Security is in the process of being changed to stop the cost of living benefits for the next couple of years, as well.
The Dow Jones continues to fluctuate between 9200 and 9500 for almost all of 2009, so it will be difficult to feel confident that we will be accessing our savings for any big ticket items like a new car or vacations within the near future. The unemployment rate is over 9% and still rising. This emphasizes the concern that the country is not really coming out of the recession as is being argued by many economists.
As my friends and I discussed the impact of inflation I wonder if the inflation level will rise from the 3% that I routinely use to determine the growth of liabilities and consumer goods for my clients, as I help them with their retirement planning.
I ask myself should I start using 4% as a better indicator of the amount of savings my clients will need at retirement? As a result I went on to Google and entered \”current inflation rate\” and what I found was very surprising and worthwhile discussing for all of us trying to make sense of the economy.
While all of us have heard about inflation and recognize that when it occurs it could cause problems for us, personally. What we may not have is an easy definition that describes inflation as occurring when money becomes relatively less valuable than goods.
Knowing this I expected to see inflation rising over the past few months but instead, since March, 2009 our economy has been in continued periods of deflation. September’s number will be due out on October 15^th and it is likely that the trend of deflation will continue.
So now I went back to Google and asked what causes deflation? **According to Kimberly Amadeo of _About.com_ deflation is defined as the time that \”asset and consumer prices continue to fall.\” This may seem like a great thing to consumers, because it may seem a positive concept that consumer prices are becoming more affordable, except that the cause for deflation is a long-term drop in demand.
Unfortunately as Ms. Amadeo continues, \”a drop in demand means that a recession is already underway, with job losses, declining wages, and an ongoing decline in the value of your home and your stock portfolio. Deflation is a result of businesses dropping prices in a desperate attempt to get people to buy their products.
Officially, deflation is measured by a decrease in the Consumer price index. However the index does not measure stock prices which retirees use to fund purchases and businesses use to fund growth.\”
Can Anything Be Done About Deflation?
Google.com has become my research source. In seeking the answer to the prevention and possibly a cure for deflation many interesting perspectives were presented. The table presented on _Inflation Data.com_ shows the drop in the inflation rate in Dec./08 and continuing into Jan. and Feb./09 and the subsequent rate of deflation often linked to recessions, that started in Mar/09.
Inflation is defined in the _Merriam Webster Dictionary_ as a continuing rise in the general prices due to an increase in the volume of money and credit with less goods and services available for purchase. Deflation seems to be caused by a long term drop in demand for goods. Of course this is only a part of the story. We need to ask ourselves why is there a drop in demand for goods?
Mike Moffatt writing on \”What is Deflation and How Can It Be Prevented\” @ _About._com. gives us further insights. Mike quotes Colin Asher speaking to _Radio Free Europe_, and Mark Gongloff @ _CNN Money_.
Colin Asher, an economist at Nomura Securities, told _Radio Free Europe_ that the problem with deflation is that \”in deflation [there's] a declining spiral. Businesses make less profits so they cut back [on] employment. People feel less like spending money. Businesses then don’t make any profits and everything works itself into a declining spiral.\” Deflation also has a psychological element as it \”becomes rooted in peoples’ psychologies and becomes self-perpetuating. Consumers are discouraged from buying expensive items like automobiles or homes because they know those things will be cheaper in the future.\”
Mark Gongloff at _CNN Money_ agrees with these opinions. Gongloff explains that \”when prices fall simply because people have no desire to buy — leading to a vicious cycle of consumers postponing spending because they believe prices will fall further — then businesses can’t make a profit or pay off their debts, leading them to cut production and workers, leading to lower demand for goods, which leads to even lower prices.\”
So the recession is the fault of the consumer? Or could it be caused by the continued increase in printing money whenever the government needs more for its own special use. Glen Beck @ Glenbeck.com displayed a graph that outlines the spending that has taken place in America. In 1971 President Nixon decided to stop using the gold standard to back our money. Over the ensuing years the outpouring of printed money being pumped into the economy will so devalue our dollar as to be almost worthless.
The consumer anxiety is this. We are concerned about the effect of inflation and deflation on our lifestyles. We are concerned about the level of our retirement funds and the slow return to the pre-October 2008 level. What if we continue to withdraw funds to augment our Social Security or pensions and the recession finally ends after we have drained our savings. As the economy surges forward the young, with jobs, will need to start over and the elderly on fixed incomes, can become greeters.
We are also, concerned about the continued recession no matter that many economists say the US economy is finally coming out of the recession. Look at the numbers and decide for yourself. We are still seeing unreasonable growth in unemployment numbers and fewer new jobs being developed except in bigger government or in lower paying homecare fields.
What is the answer? The job of preventing recessions over the past few years lies with the Federal Reserve Bank and the Federal Government. Decreasing the interest rates has helped to increase the supply of money into the economy. Lowering interest rates has worked in the past but now the interest rates are already low and the feds hesitate to cut the rates further.
The government can help by putting more money into the economy by lowering taxes and increasing government spending with a temporary deficit. The government is already printing money for many new ideas such as the stimulus package for AIG and loaning money to the banks and the auto industry thus causing a real deficit, not a temporary one.
Why not lower taxes? This would benefit the common people not only the banks and corporations. Why not beg the feds to print more money to be used to buy bonds to decrease our interest rates? Is it such a big deal to cut the rate by 1/8^th of a percent to help the economy? The feds have usually lowered the rates by 1/4% or greater.
Last quarter the feds decided against cutting the interest rate. When economists talk about \”printing more money\” and \”the Fed lowering interest rates\” they’re talking about the same thing. The Government is printing money but not reducing taxes or lowering interest rates. While already low, there is still room to lower them further, so using this policy to fight deflation will support growth in the economy.
About The Author:
Irene A. Majchrzak helps people retire debt-free with a sense of well-being and the freedom to have the things they want. Get her free ebook, Debt Free to Retire, by going to http://debtfreetoretire.com
Read more Articles written by Irene A. Majchrzak.
Learn About Short Term Insurance
From expensive but extensive policies to cheap and inadequate coverage plans, insurance companies make it certain that they don’t discriminate. One option many insurers provide is short term insurance, coverage that protects you much like a standard policy would but only for a short period of time. You are able to protect yourself from financial loss the same way you would with any standard length policy.
To find the most affordable short term insurance rates, jump online and start comparing insurance quotes from a number of different companies.
So what’s the need for short term insurance? A quality policy can be beneficial in each insurance category:
1. Auto insurance. If you are taking a trip with a friend who will be driving your vehicle, or if you find yourself driving someone else’s vehicle for a short period of time, it is your answer. An accident can occur anywhere at anytime, so you will want coverage even if you are driving uninsured for a day.
2. Home insurance. In a situation where you find yourself moving and have a lapse between the time your old policy expires and the new one begins, it is the way to go.
3. Health insurance. Because it’s considered a privilege and not a right, health insurance can get a bit pricey. It is very important to own, however, so make sure you do everything in your power to obtain it. If you are in between jobs or are a recent college graduate transitioning from a dependent status on your parents’ policy into a policy of your own, short term health insurance might be a wise investment.
Short Term Insurance Is Your Best Bet
This is by no means an extensive lesson about short term insurance, but it is a good start. Since most policies are temporary, coverage is relatively cheap. To learn more, visit InsuranceAgents.com or contact an insurance agent today and see for yourself what the fuss is all about.
For more information, read \”Short Term Insurance: Your Options\” at: http://www.insuranceagents.com/short-term.html
About The Author:
Tom Lustina writes about the insurance industry. Consumers can get immediate access to insurance quotes, articles, and comparisons. Learn more at: http://www.InsuranceAgents.com/
Hedge Your Bets With Job Loss Protection Insurance
Although it is easy to think that you are immune from the depressing economy because you consider your job to be secure, you really can never predict the future. Hundreds of thousands of recently laid-off workers across the country thought the same thing and now find themselves unemployed with bills to pay. The most expensive bill in most homeowners’ mailboxes is the mortgage bill. You can make sure that bill is taken care of regardless of your employment situation with a job loss protection insurance rider to your existing homeowners insurance policy.
According to an article recently published on InsuranceAgents.com, the best way to find affordable homeowners insurance quotes is to shop online and get in touch with a home insurance agent. Ask your agent mortgage protection insurance and whether or not it is right for you.
\”Job Loss Protection Insurance: Myths\” states that it is important to prepare for whatever the future may hold with a job loss protection insurance rider. The article states, \”In any economy, let alone the one we are living in now where jobs are cut en masse everyday, it is wise to financially provide for an uncertain future. Job loss protection insurance will give you and your family the peace of mind that should the main bread winner find themselves without a job, your most costly and important expense–your mortgage–will not go unpaid.\”
The article lists several myths often associated with job loss protection insurance. For example, generally you are only eligible for job loss protection insurance if you are jobless as a result of unexpected termination and not mandatory, retirement, resignation, or if you’re dismissed as a result of misconduct or criminal activities. Also, if you are self-employed or own more than 10 percent of the company that employs you, you are typically not eligible for job loss protection insurance.
Furthermore, if you are hoping to start collecting immediately after you are laid-off, then you might want to think again because most job loss protection insurance riders don’t kick in for 30- to 60-days after you claim joblessness. Also, you will not have to bother with being the middleman, because your insurance company will be dealing directly with your mortgage company regarding your mortgage payments.
About The Author:
Written by Kyle Fitzsimmons. For more information, read \”Job Loss Protection Insurance: Myths\”. Insurance Agents dot com provides expert articles, as well as auto and homeowners insurance quotes from up to five local insurance agents. Learn more at: http://www.InsuranceAgents.com/
Follow Kyle Fitzsimmons on Twitter.
Protection of Your Hard-Earned Retirement
Many articles discuss debt, what it is, how to get out and stay out, how to learn to spend cash instead of using credit cards and how to give up the bad debt habits developed over a lifetime. More articles discuss your retirement accounts, what the mutual funds really look like internally, how to choose investments based on your tolerance for risk and different strategies for investing in today’s economy.
What is only lightly touched on is protection of your lifestyle today and in Retirement. In the recent past, one year ago, I would have recommended today’s protection begin with a cash reserve of 3-6 months of cash to carry your debts of mortgage, taxes, utility bills, food, and gas for your car. Added up this amount may total $10,000. The economy may be coming back or it may be a bubble that could burst into a new down market or bear market therefore, saving in a cash reserve today doubles the amount of money you need to protect your lifestyle for 6-9 months.
Obviously, if you don’t have a cash reserve trying to get thousands of dollars into a cash reserve fund may be really difficult. In financial planning programs, I usually encourage my clients to consider 60 months of saving to come up with the money. Does not having the time to save mean you should not start to save? Absolutely not! Primarily, because you may not lose your job or have emergency expenses that will drain your savings.
You need to start somewhere to protect your lifestyle. So while you are paying down any credit card debt try to save some money in a bank account. Increase the savings as your debt decreases always keeping in mind that purchases must be managed as well to keep from being overburdened again, with debt. If necessary save some money into another account for those items you feel are essential to buy.
This is also a good time to review your life insurance or disability insurance available through your employer. You are probably aware of your health insurance benefits and may not have decided to take advantage of the insurance opportunities that are yours for very little money through your employer. Talk to your Human Resources department or your benefit manager to find out what your costs are, what coverage you will have and the possibility of covering your spouse and children. Protection of your lifestyle depends on making sure you will not go into debt through the use of credit cards to manage your bills while you are unable to work.
If you are retired or soon to be retired, you may want to evaluate your benefit package to see how it is impacted once you are retired. Start with your health insurance. Medicare does not become available until you are 65. You will need to have coverage until then. Check with your employer based program. Understand the benefits and consider changing your health benefits to two single plans instead of a family plan as long as there are no dependents. College-age students may benefit from their School Health Plan and save you money as well.
Once you quit working disability benefits, through your employer, may not be necessary. Private plans may give you coverage until age 65. If you are considering working a part-time job, consulting, etc. you may want to call your agent and discuss continuing your plan. Understand exactly what your coverage will be, when it will start, how much you will receive and the taxable nature of your coverage.
For all of you looking to protect your lifestyle in retirement reviewing your life insurance and discussing long-term care insurance with an advisor would be very beneficial. Make sure any term life insurance held by your employer will still be a benefit for you after retirement. It usually decreases and becomes a nominal amount of coverage. Know it ahead of time. Make sure the amount will cover any existing debt, mortgage included.
Long Term Care is nursing home coverage. Do not confuse this with the health care benefit of coverage for acute illnesses, often found in many health insurance benefits. Few companies include this new benefit for their employees, You will need to purchase these plans, privately. Many people feel that the expense for nursing home coverage is way too expensive. Unless you are on Medicaid, you could lose your home, your social security benefits, your pension and your income from annuities and retirement funds without Long Term Care Coverage. Protection of your lifestyle for yourself and your family are most important.
There are Long Term Care benefits available through many agents and insurance companies. The New York State Partnership is one plan to consider because it initially, covers your admission to nursing homes, assisted living programs and many begin with home care coverage. The most important part of these plans is to make sure that the decisions for coverage begin with your doctor and not with the insurance company or their case managers. Nursing home costs today in our area average about $60-75,000 per year. Policies covering these costs usually include a 5% cost of living increase to keep pace with the growing inflationary costs of coverage.
About The Author:
Irene A. Majchrzak helps people retire debt-free with a sense of well-being and the freedom to have the things they want. Get her free ebook, Debt Free to Retire, by going to http://debtfreetoretire.com
Read more of Irene A. Majchrzak’s articles.
Student Credit Cards Can Help Lay The Foundation For Prosperous Adult Living
Credit is one of the most fundamental aspects of the financial structure we have built our society. In fact, a great credit score can be one of the most valuable assets an individual will ever have in his or her life.
A young person, just beginning to build a credit rating for his or herself will often discover that their lack of proven credit history will be disadvantageous to their goals. Having no established credit is generally viewed in the same light as having bad credit, because there is no way to foresee how well the individual will pay their bills.
Establishing Good Credit
Credit scores are determined by a number of factors. How much debt a person has, how regularly they pay their bills, and a history over a seven-year period, are typically the main factors used in determining a person’s personal credit rating. For the college student, a student credit card can be a great financial product to help them begin the process of establishing their own good credit down the road.
College student credit cards provide a variety of options that can make them more suited for a beginner in the world of credit, than credit cards designed for more experienced cardholders.
Credit cards, in general, are a very easy concept to understand. They are like little loans that one will qualify for in advance and can use whenever they wish. The student can request a student credit card by filling out an online credit card application from any major bank, or they can fill out a credit card application at their local bank.
If a student ever needs to purchase something and they do not have the cash on hand, they can use a credit card to pay for it and then pay the credit card company the money back. Having a college student credit card is like having a kind and compassionate parent in their back pocket who will agree to any request the student has for cash.
Most student credit card providers prefer that a responsible cosigner be listed on the credit card application. In most cases, this would be a parent or guardian. Having someone with a great credit score, willing to vouch for the student’s ability to repay any credit balances, is an encouraging sign for any lender.
The Dangers
A student credit card is obviously a good thing for many reasons. Many students use their cards for specific purposes only. This can be an essential item, or they could have it purely for emergencies.
One classic example is a gas credit card. It is common for students to use their credit card solely to purchase gas, so they always have a way of paying for gas when they need it. Other common choices include groceries and other basic necessities.
This is a very responsible way to handle a credit card. Problems begin when negative spending habits begin to develop. First, students begin spending more than they can immediately pay back. Student credit cards typically offer lower interest rates than traditional credit cards, but they still charge interest.
Most students are just starting out in life and they are not quite as responsible as they should be with their credit cards. They will get a student credit card for emergencies only, but fail to thoroughly define what they consider to be an emergency. As time goes by, they might become more inclined to consider a night on the town with their friends to be an emergency that will justify the use of a credit card.
Most credit cards have what they refer to as grace periods. This is a period of time that allows the cardholder a time period where interest charges do not apply. Grace periods are typically 30 days or until the end of the month of the original purchase. Different companies have different policies regarding their credit card grace periods.
Paying off the entire balance every month is the ideal situation, but there are always situations that will arise that make it difficult to do so. Paying off what you owe as quickly as possible is the only way to avoid accruing interest charges that can easily increase the consumers debt to double the amount of the original purchase.
Potential Perks
A wise spender can easily manage their finances, so that upon graduation, a college graduate could have established a solid enough credit rating to be able to buy a home straight out of college.
There are many aspects of student credit cards that are designed to help young cardholders wisely manage their debt. The amount of interest most people pay is considerable. College student credit cards are generally low APR credit cards, which means that the student will often pay a lower APR than someone ten years their senior.
In addition to low credit card APR rates, there are many Internet features available for someone with a student credit card. Online bill pay makes it possible for a student to easily pay all of his or her bills conveniently. Many companies also offer monthly reminders to help young people adjust to paying their bills regularly.
In Conclusion
A college student credit card can help prepare a young person for the immense financial world that awaits them at the end of their college careers. There are many potential pitfalls in the economic world that an untrained eye might miss, but the student credit card program will teach the attentive student how to spot and correct these potential pitfalls. Student credit cards can help prepare anyone for a life in the real world, and help a student enter adulthood with the good financial sense to make good financial decisions.
About The Author:
Braxton Heitz writes about family finances and the struggles of the job search. If you are looking for a job or looking to make a career move in the current troubled economy, then visit the Jobs And Paychecks website at: http://www.jobsandpaychecks.com/
Read more Articles written by Braxton Heitz.
Easy Tips To Reduce Your Cost Of Living And Survive Recession
Recession is a period of general economic decline and we need to prepare for it. Surviving the recession is much easier when you are prepared for it.
Here are some tips for surviving the current economic crisis.
Don’t panic, keep your senses open and pay great attention to the market news. Only a thorough knowledge about recession will help you to cope up with the situation. Read books, visit public libraries, gather information etc.
Calculate your total monthly necessary expenses as well as your total monthly discretionary expenses. Your total necessary expenses are those that must be paid even if you lose your job. Clearing your mortgage or rent, your gas and electric bills, groceries, your minimum credit card payments are a necessary expense.
A discretionary expense is an expense you can eliminate without a substantial penalty. Cable TV, the pool membership, and meals out are all discretionary expenses. You can get rid of your discretionary expenses. Get rid of anything that is a waste of money or is no longer needed.
You can also trim or cut back some of your expenses. Save on heating and air conditioning. Turn off lights and appliances when not in use. Cut back on the number of times you eat out. Cut back on entertainment in general. Instead of going to a movie and spending money on popcorn, rent a movie and pop some microwave popcorn.
Try to make dinners and lunches that are more economical.
If you have always paid your bills on time and are in good standing with your credit card companies, ask them to reduce your interest rate.
Making these small changes can add up to a few bucks a month.
Spend wisely and prudently.
Always keep an emergency fund with you.
Keep your budget with you at all times. Before you spend money on something, look at the budget. By constantly referring to your budget, you will be reminded of your goal. Stay focused and determined.
Keep your budget updated.
Money breeds money, hence try to find out alternative sectors where you can make money. Be positive and invest in them because recession always creates opportunity. Try to earn as much as possible by making smart moves and decisions.
If you lose your job due to recession, never get depressed or feel bad about it. Use your skills to earn as much as you can. Change your field if you want.
If somehow you struggle to make mortgage payments, keep calm and think for the best possible option. May be you can opt for extending the mortgage payment period or may be you can temporarily do away with the interest.
Never try to get your hand on any additional major loans or debts. It may only deteriorate your current situation.
For some, these tips may be easy. Others may need to make some lifestyle decisions.
The choice is yours. But for peace of mind, it is better to cut back your expenses now than to be short of money should the unfortunate happen.
About The Author:
Fred Vanhoosen writes about money issues. While he recommends that one should be careful about using cash advance loans in times of dire need, he also knows that sometimes we need fast access to fast money to cover an unexpected expense. When that happens, Fred recommends http://www.fastcash4all.net/ for your payday loan needs.
Read more Articles written by Fred Vanhoosen.
What My Mother Taught Me About Credit Cards And Family Finances
My mother is an amazing woman. She made some of the hardest jobs imaginable look easy. No matter how hard her day was, she always had a smile and perfect hair.
She was mainly a stay at home mom but she worked cleaning houses when our family’s financial situation called for more income. My dad was a soldier, so he didn’t make a lot of money. The holidays usually wiped out our family savings account, but no one ever complained.
My mom has always been a money master. Her philosophy is a simple one that has never failed her. Work hard and spend little.
Mom is not an old woman, but her mother was raised during the Great Depression and eventually had to raise seven children on her own. She taught my mom how to make a can of beans last for weeks and my mom taught me, much to my husband’s displeasure.
While I admire my matriarchs’ simplistic approach to finances, it does not address the inevitable problems of credit and taxes. My education in money matters was limited to just mom’s basic philosophy of life.
The world outside of my parent’s traditional home was not quite what I was expecting, or what I had been prepared to handle. Despite the best intentions of my foremothers, there are still a few things that I wish my mother had taught me…
Credit Card Interest Hurts
Getting my own credit card for the first time was such a thrill. I bought my share of useless junk that I did not need. Unfortunately, I was not as cautious with my spending as I should have been.
Before I knew it, my credit card balance was astronomical. I could barely make my minimum payments. Since I started out with no credit, my interest rates were astronomical. It took months of payments before I finally began to pay on the principle and not just the interest.
After about a year I finally paid off the balance of my initial expenditures. I’ve been much more cautious with how much I will charge on a credit card, since my initial graduation from the school of hard knocks.
Don’t Spend Money You Don’t Have
Credit cards are tempting; because they allow us to spend money we don’t have in our pockets. Ideally, when we spend money, we have the money in our bank accounts and just forgot to go to the ATM. Of course, most of us know that this is not the case.
Sometimes we spend money on important things. Buying groceries on Tuesday when we don’t get paid until Friday for example. These are harmless purchases as long as we keep in mind how much we are getting paid on Friday.
Keeping a budget is probably the greatest thing a credit card holder can do. With a well-planned budget, anyone can track their finances in a way that allows them to spend wisely and with confidence.
Keep a Record And Look At It
With the ease of using credit cards to pay bills and buy stuff, it can be difficult to keep an accurate record of where our money is going. Ours is a generation that does not regularly balance their checkbook. Online banking has made it too easy to just check our available bank account summaries.
We don’t scrutinize every transaction like our parents did. We simply trust the bank and believe that they would not make any errors. Credit card companies allow us to make payments online with out ever receiving a bill.
It has become incredibly easy to ignore the sheer volume of purchases made in a month. Credit card companies like to help us in our denial any way they can. But, keeping track of where we are spending our money is the key to maintaining our accounts and our credit rating.
Good Credit is Important
A good credit rating can mean the difference between advantageous and difficult situations. There are many perks to having a good credit rating. Low APR rates are one of the best benefits of having a good credit score.
Being able to make major purchases, such as a home or a car, also requires good credit. The total amount that an individual will have to pay for a loan is determined by how much he or she pays in interest. If someone has bad credit, one could end up paying thousands of dollars more in interest over the life of a loan.
Good credit is easy to come by, if we are responsible. Paying our bills on time is the best thing we can do to help our credit. Not putting too much on a credit card or having too many credit cards, can also improve a person’s credit score.
Rewards Are Good
I love presents and I love shopping. Getting rewards from my credit card company feels like little thank you gifts for shopping. It is a great feeling. I wish I could get presents for doing all of the things I like.
While each credit card company is different, almost all of them offer credit card rewards to their customers for spending money, something we have to do to anyway. With so many options available for credit card reward programs, it would be impossible to not find one suited to our needs.
Reward options are endless. One can receive cash back rewards, airline miles, travel rewards, or even discounts at some of our favorite stores. For the more humanitarian shoppers, there are rewards programs that donate a percentage of a purchase to the charity of their choice.
Take Advantage of All of the Perks
Special credit card offers are some of the best ways to save money on items we would have to purchase anyway, no matter what. Everyday household items are a necessity. Taking advantage of a 0% interest credit card offer on a cash back rewards card can help us earn money for buying something we truly need.
Many online websites are dedicated to helping consumers find the right credit card for their needs. If we take the time to properly research what it available, we can uncover a whole world of moneymaking possibilities. They exist right under our nose.
In many cases, it is possible to fill out an online credit card application and receive instant credit card approval. There are countless ways to find a credit card application for the consumer’s card of choice.
Contacting a favorite store and inquiring about their credit options is an easy way to save money where we like to shop. Many people choose to receive a credit card from their bank to help establish a better relationship with the bank.
Final Thoughts
It is amazing how much we learn from experience. Unfortunately, most of it is from bad experiences. I know I would much rather learn from someone else’s mistakes, but people generally do not like to talk about their bleak financial histories.
My parents did a good job of teaching me how to work hard and build a good life. Knowing about all of the rules and pitfalls surrounding credit, loans and credit cards was sadly missing from my life lessons.
Schools are beginning to offer personal finance courses, but they do not yet require students to take them. Every year, more and more people declare bankruptcy and our schools do nothing to educate our youth about the pitfalls of taking on too much credit.
With a sound foundation of the demands of responsible spending, credit cards can be a great tool. Whether you discover through experience or education, the knowledge of how to care for your finances will be one of the most important things you ever learn.
About The Author:
Braxton Heitz writes about family finances and the struggles of the job search. If you are looking to find job listings or looking to change careers in the current troubled economy, then visit the Jobs And Paychecks website at: http://www.jobsandpaychecks.com/
Read more Articles written by Braxton Heitz.
Taking Advantage of the Stock Market
Is the market rebounding? The Dow, leveling out each week because it gets a rise in the market one day and a pullback the next day, comes from investors’ taking their profits. This will probably continue for a year or so until the really large investors such as Hedge Fund Managers, Institutional Investors like Mutual Fund and 401(k) managers start purchasing the really great stocks at lower prices for the longer term.
You might start looking for those investments that might be a great buy and start to determine your strategies for owning new mutual funds or stocks. You may have a deeply hidden desire to own stock in a company like this 64 year old client never really interested in investing any money for his future. I guess no one had explained that you could put any investment into your Roth or traditional IRA or after-tax investments. When he heard this he said, in a very mild mannered voice, \”Could I own stock in Harley-Davidson?\”
Being prudent and fiscally responsible we discussed what money would be used, how to choose an investment, and what exit strategies we were going to devise for his portfolio.
Step 1. Review of your finances. Have you determined that you do have discretionary income that could be used to invest? While we will discuss strategies for choosing stock and discuss when you will get out of the investment, the money will be at risk if investing is a choice you make. It is very important to recognize that there is a danger of loss in any investment.
Choosing a stock could be as simple as the client above stated, knowing about a company and wanting to own shares or you may want to do your own research into stocks of various companies or sectors. While you are looking at your stock choice you will want to read some of the newsworthy items regarding the business or sector itself. Identify problems that may have been causing the stock price to fall or to rise. Look at merger information, read the annual report of the company you are considering.
Step 2. Start to follow the stock price in the paper or online. Start to form a list of those items that may be important to you about the stock, itself. Does it pay dividends? How did the stock perform in the last period of 2000-2008? What is there about the stock that you like? Find worrisome? Has the stock been repurchased by the company recently, and why? What is the current price, etc.?
The newspaper will give you a variety of information about the company you are choosing. Compare it to other companies. Make sure you understand terminology or importance of concepts used to describe the stocks such as selling on large volume, 200 day moving average, etc. Go on-line or discuss the information with your advisor.
Step 3. Determine an exit strategy. Exit strategies are very important when deciding to own or purchase stocks. You must have a plan for buying and selling your stock. In years past investors used a buy and hold strategy that kept them tied to their investment for the long term, many years. Investing today is based on exit strategies.
Step 4. Choose an Exchange Traded Fund (ETF) or stock, decide the percentage of profit you will make before you sell it, and then sell it. Some investors think 8% over your purchase price, others 10%. But having a plan is essential. Buy and hold is not as clear an option as it once was.
You may want to choose to sell the stock if it is not growing after 3-6 months. Instead of keeping the investment for the long term, sell it, buy something else you have researched that does have better growth potential. Investors are selling to get back their profits and it may be what is hindering the growth of your investment.
Step 5. Look at opportunities to protect your profits with a stop/loss. A Stop/loss strategy will allow you to protect your profit by placing a stop(sell) to prevent a loss on your investment. You could further, protect profits by continuing to move the stop/loss upwards as your profits increase, always staying about 2-3% below the current price. If the stock begins to fall and hits your stop/loss price, it will automatically be sold. Meanwhile, look for the next stock to invest your profits.
About The Author:
Irene A. Majchrzak helps people retire debt-free with a sense of well-being and the freedom to have the things they want. Get her free ebook, Debt Free to Retire, by going to http://debtfreetoretire.com
Read more Articles written by Irene A. Majchrzak.
