March 5th, 2014
Are you struggling to make the most of your paycheck funds? This is common in most of the families, especially in case of young couples. After paying the taxes, you are left to pay up the outstanding bills finding it harder to make place for savings. But savings is really crucial, particularly when you are starting a family. However, not to worry as there are some really effective strategies that can help you to make the best of your paycheck funds.
401 (k) plans
It would be good for you if you are with an office with 401 (k) plans. You can take to the automatic deduction schemes where your contributions made to 401 (k) plan would be extracted from the check prior you get to spend it. As the 401(k) contributions come with pre-tax benefits, your net taxable earning would be less every year- & that might even place you in a lower tax circle.
This is one of the most significant steps when it comes to paycheck fund planning. Go for a good auto savings plan that would automatically take out a scheduled amount from your specified bank account every month so that you don’t get to waste it unmindfully. Most importantly, as the amount would be extracted monthly in little quantities, the sacrilege won’t be heavy on you. The monthly extraction from your funds might pinch you initially but just imagine how much it contributes to your future savings. According to surveys, 57 percent of people who took to automatic savings have been hugely successful in effective management of their paychecks.
Monthly budget plan
You have to chalk out a serious budget plan for every month. Count the amount left after your tax and monthly deducted savings and plan out how to skillfully utilize it every month. Make a list for your mandatory expenses which should be met religiously. It would include your utility bills, the debts to be cleared and other inevitable expenses. Then settle some money for emergency purposes like sudden clinical fees or car repairs. The last remaining amount would go for your luxury indulgences- stick to the set budget and never go beyond your own specified limit.
When it comes to clearing the pending debts it’s advised that you proceed with the one with highest interest. This will help to lower down the pending burden gradually as you go.
February 8th, 2014
The concept of credit card can be a boon for many but can also be a curse for many. There are several considerations before taking a credit card. Here are some of those given below:
• First of you need to ensure the purpose of the credit card and for what you will be using it. If it is to pay monthly bills then you must choose the bank that has got no annual fees and also has the facility for longer grace period. If you want to keep a minimum balance then the bank with lowest possible interest rate should be selected. That bank will also have a low introductory rate. If you use it on a daily basis then the best card would be the one that has got a generous credit limit. It should also contain a solid reward program. If it is for emergency purposes then the bank with no frill should be selected. They also have low fees and low rate of interest.
• Second point is the interest rate. The interest rate of credit cards is denoted by APR which is annual percentage rate. The rate can either be fixed or variable although in most cases the prime rate prevails. It is better to choose a credit card that has got a fixed rate of interest. This will help you to calculate the accurate amount of interest at the end of the month.
• Credit limit is another thing that you need to consider. This is nothing but the amount which the bank would let you borrow. This can be selected according to your choice because you would be the best person to decide how much you can spend in one month depending on the purpose for which you are using the credit card.
• Before selecting a credit card you must analyze the credit score you got. This would help you to know which type of credit card you would be eligible for. Those who have a poor credit record are not eligible for credit cards which have a good credit limit.
• The fine print of the credit should always be checked before you finally decide to take one. It would tell you the fees which will be charged annually. There are times when you want to transfer some balance from one card to another. You must ensure that the charges are really for these things.
December 27th, 2013
While you are up there on the aisle exchanging vows with your soon to be life partner, the last thing on your mind is joining the assets and income sheets of each other and starting to plan for the future. However, the quicker you discuss these issues with your partner, the better it is for the future of not only the marriage, but also the family.
You might be already investing a particular amount before marriage. But once married, almost all situations change. Expenses automatically increase, and you must keep aside money for sudden expenditures such as an impromptu trip to a relative out of a station, a family ceremony, or health related issues.
If you or your spouse have an existing loan, it is advisable to stop the monthly investment and then use your savings to pay off the loan. If you have a credit card loan or a personal loan, this should be the strategy to follow.
If neither one have an outstanding loan, you are one lucky couple. Now sit down with your spouse and discuss and analyse the collective income with the total home expenditure and other bills on a monthly or quarterly basis. Once you know the total savings that both of you make at the end of the period, you can start thinking about the goals and dreams you have shared for long. The most common one that almost all couples have is starting a family. There are other goals as well such as purchasing or building a house, an expensive holiday or buying a new car.
You then need to calculate when exactly you need to make the investment, and how much should the amount be. Tag the savings to your goals, both short and long term. Decide on which goal you wish to achieve first and in which order, make the investments and enjoy the benefits.
December 6th, 2013
The foreign exchange market, commonly known as the Forex, is a market that is decentralized and is used for the trading of currencies. Getting the benefits out of exchanging the foreign currencies is not just the business of the banks but if one keeps a close supervision over the market and knows how it works then it can be a very lucrative business. The concept of exchanging currencies is very simple. Two currencies are traded against each other. Such trading is done by the brokers who are monitored by the National Futures Association.
Many people might find it difficult to trade on forex, as it might seem too complicated to them. Unlike stocks it is focused narrowly on a limited area. There are 10 important currencies that are traded on in forex. This gives a clear picture and seems to be less complicated than a stock market. It is very liquid market as the traders can buy and sell any time. Brokers on forex charge commission for the buying and selling of currencies. The forex firms take up risks by being a participant to the trade and they make money by a method called the bid-ask spread. Here the amount of the ask price exceed that of the bid. Because of the trading business that takes place on a very large basis, it gets translated into a lot of money. Hence trading on forex can be profitable.
There is a method that you must follow when you are trading on forex. The hours of trading vary which depends upon the currency that you are trading. If you want to become a trader then you may require a professional platform for trading that will be provided by the brokers. They will help you to manage your accounts. You will have to do forex research and analysis so that you can understand the climates of different countries and make their best use to buy and sell the currencies.
November 27th, 2013
A mechanism that was started in the developing countries a few years back to help the poor working people is microfinance. There are numerous microfinance institutions that have come into existence and these have been offering tremendous help to the people who want to start up their own enterprises. Through the microcredit loans that people receive they are able to set up their businesses and become independent.
Microfinance was started because facilities such as banks and other money lending companies could not be accessed by the poor working people. Banks and other financial institutions have certain strict requirements which the people having low incomes were not able to fulfill. For instance, the institutions would lend loans only to people who have a source of stable income. But most of the poor people do not have a stable income because they are usually self employed.
An important component of microfinance is microcredit. Through the microcredit facility small scale entrepreneurs are able to improve their businesses and augment their profits considerably.
Microfinance has actually become an effective strategy for combating poverty. Poor people are protected against the high rates of interests that are charged by the informal financial institutions.
Another advantage of microfinance is that it has empowered women to a great extent. Microfinance ensures that there is an equal access and distribution of finances and other resources. Many women have acquired the microcredit loans and have become self sufficient. The status of women has also improved at a tremendous pace from the moment microfinance mechanism was introduced in the developing countries.
Poor people are getting the opportunity of increasing their assets because they are able to build or improve their home, acquire properties, purchase poultry and livestock. People have actually become well equipped and can face any kind of unpleasant circumstances confidently with the help of microfinance.
November 16th, 2013
If you act as a co -signer on a loan, you are responsible for making loan recompenses when the borrower is not capable to do so. If the borrower dies , you may have to continue making payments , although the phrases of the loan accord will determine whether there is any continuing obligations on behalf of the co -signer . Talk to a lawyer if you need legal advice about your rights and obligations as a cosigner. Co -signers; When you co – sign a loan, tells the lender that you will pay for the loan if the borrower fails to make payments. You also agree to have the loan that appears on your credit report, but usually does not get to use the product or the benefits of the loan. Every time I co – sign a loan, it is important that you read the terms of the background. The loan certificates should address what occurs in the event that the borrower or guarantor dies. In a few situations, for instance, the loan agreement may decide that the guarantor is liable to pay the remaining amount in case of death of the lender. In other situations, such as student loans, a creditor may agree to meet the loan in case of death of the borrower, while others do not.
What you should know before signing or guaranteeing a loan
The credit is a legal contract. While each contract is different, they all contain specific requirements for the amounts payable, interest rates, due dates and penalties for late payments. Commonly , credit contracts require that you either own , pay taxes and maintain insurance on an item (such as a car or home ) that may have been used to obtain a secured loan. By meeting the exact terms of the account, adds value to your credit history. Each month , lenders report to the credit reporting companies on account balances , accounts that were paid on time , accounts that were paid late and the bills that were not paid at all. If you fall behind on your payments, your credit will suffer, probably pay late fees and in the future will cost much more to get new credit. Even if you catch up on your payments, late payments continue inquiring as part of your credit history. The lender also has the right to sell the collateral if you default on the loan payments. In some cases, sell the collateral does not generate enough money to pay your debt. In this instance, you may be required to continue paying the loan even if you do not own the article.
November 7th, 2013
Investing in Real Estate can be a lucrative business in today’s world. People are now interested in buying and selling of their homes and make profits. To build a new house, renovate an old one and selling them for a very high price has become a great way to earn and have a lavish life. There are professionals who help such investors meet their needs.
Following are the ways for a safe investment in a real estate business.
Though the real estate market is undergoing certain crisis in recent times, prices are falling, but in the long run, investment in real estate market surely provides a handsome profit over the years. Before investing in this market you should always make the maximum utilization of your time to look for a good deal first and then move forward in buying the plot of land. The only way to make huge profits in a real estate business is to examine the market conditions and to learn the way in which it operates which requires a lot of patience and hard work. You must know the condition in which the house is, its location, neighborhood, whether it has any tenants etc. Everything must be clear to you. There are many tax breaks that are in favor of real estate investors.
The smart way to begin investment in real estate is to make small investments. You can start with buying a house at a very low price which is below the market value. You can renovate it, live in it for a few while and then sell it off at a very high price. You must also calculate the total cost of investing and renovating in a house and also the amount of money that you expect to get from its sale. By doing this you can compare among the different options.
November 1st, 2013
This is a very delicate phase of life where you get a taste of things differently. It is in this phase that you need to start planning about the future, not only yours but your partners as well as your new child’s. Emotions are at a peak at this time but keeping your mind on track and not wasting any moment of it is the best management ever. It is important to know that the whole responsibility is on your shoulders now and with the coming of this new born comes a whole new set of responsibilities and financial crisis. With the increase in the number of members in your family it is but evident that the finances are expected to go up. The child’s food, health, clothing and education all need finances to run smoothly with the hope for a bright future.
The most important thing is planning. This can only happen if you schedule your budget by finding out the expenses on food, wipes, diapers, formula, clothes and other things of importance every month. According to the schedule a fiscal budget chart can be prepared. After all the expenses are fulfilled it’s important to know how much money you are being able to save every month. Even this saving will be of use as the child gets older.
Insurance at this stage of your life plays a very important role. Life insurance for both, the father- if he’s the sole breadwinner of the family and the mother are very important. It covers the cost and gives financial relief in case a mishap happens after birth. Health insurance should be done previously so that maximum benefit can be taken before and after the pregnancy. Insurance of the child secures his/ her future too.
October 23rd, 2013
Becoming a parent can be a very overwhelming thing. But along with that it is exciting as you enter a new stage of your life and you get a chance to experience new things. As a parent, you must be responsible enough to secure your child’s and your life financially. Once a baby enters your life, your financial expenses tend to increase because you have to spend on a lot of things like your baby’s clothes, food, health expenses, education etc. This article will list down a few smart financial tips that will help you raise your child appropriately by following a proper financial plan.
Firstly, it is very essential that you plan your budget. Try to get to know the costs of the different things that your child will require like diapers, formula, baby wipes etc so that you get an idea of how much you will have to spend on those things. In accordance to that you will plan your fiscal budget and save some money every month to fulfill the basic needs of your child.
Getting a life insurance policy is an absolute necessity especially if you are the mother because it will save your family and your child from any financial crisis in case anything unfortunate happens to you during or after the birth. Health insurance policy should also be availed by you so that you can take full advantage of the policy before and after your child is born. Both life insurance and health insurance policies should be availed for your child as well so that his/her future is secured.
Whenever you are buying things for your baby, avoid going overboard. Only buy those things that are extremely necessary and can be afforded by you conveniently. It will be a smart move on your part to save for your child’s schooling, higher education, marriage etc from the very beginning.
October 12th, 2013
In these constantly fluctuating market conditions it is very difficult to predict when the economy will face a boom period and when it will face a period of depression or recession. Recession is such a period when the economy suffers huge losses because of wrong economic decisions or because of the bad response of from the world market. Recession periods are faced by all countries at some point or the other but it is important to come out from the bad situation than staying in it and not doing anything about it. Many big companies at this time of continuous financial loss over a period of time fire employees in huge numbers in order to cut down on service charges and labour cost and to recover some of the money. It is important for us to know the survival strategy at times like these:
Firstly the marketing structure should be manipulated for the better. Suppose your company is marketing for a new product, say shampoo. The feedback says that the response for this new shampoo is not so good. So it is best that you stop marketing and wasting precious time, labour and capital in a field like this.
Secondly prices of your shares should not be lowered immediately. It is important that you have your own working plans and schedules. Inspite of the fact that recessions can be very unpredictable, future prospects of price of your shares going higher should be considered and according to that prices may be changed thereafter.
In today’s world where the World Wide Web is a big hit amongst the youngsters and elderly both it will be a smart idea if you start focussing your attention on the concept of online marketing. Local involves the wastage of more time and energy should be replaced with online marketing as this helps the cost factor.