Archive for the ‘Personal Finance’ Category

Tips For Opening Your First bank Account

Saturday, June 25th, 2016

Open bank accountOpening your first bank account is a big step towards your bright and successful future. It’s also a step towards you being an adult and responsible. You would be thinking that opening your first bank account would be easy and yes it is easy. But need to have adequate knowledge as you are new to this field and might make mistake while opening your first bank account. When you are new in any field you might make mistakes are you are short of knowledge, experience and guidance so is the case with opening your first bank account. You must consider few points while opening your first bank account which will help you throughout your transactions of banking. Here are some of the important tips for opening your first bank account.

  • Know your account types

There are many types of bank account. Thus while you go for opening your first bank account, you must check out for all bank account types. Make proper research and explore all your options and then make any decision as to which type of banking account to opt for. Compare all your options while opening your first bank account and check which one offers you with maximum benefits with low cost. Also see to it whether you want a checking account or a savings account. You have a total right to know each and every detail about every types of account as it is related to your money.

  • Learn how to maintain your account

Just opening your first banking account is not enough; you need to learn as to how to maintain it also. There are several banks which have some or the other policies relating to deposits. Thus while opening your first bank account, you must check whether there are any of these policies or not. There are several banks which also have requirement of maintaining minimum balance in the account. Thus check for these criteria of minimum balance requirement while opening your first bank account. If that minimum balance is not maintained then you might be charged some fees or even you get restricted from having access to your account which might not be the thing you want to experience with your bank account. You can even be restricted from suing your ATM card.

  • Ask about the fees

This is one of the most important tips to be considered while opening your first bank account. There are many banks which have fees to be paid but they will not tell you up front and hide from you. Thus you have to be smart enough and ask by yourself whether you have any fees to be paid while opening your first bank account. The fees which bank charges and they don’t tell you are ATM fees, overdraft fees, minimum balance requirement fees, annual fees for the account, activity fees or minimum usage fees. These are the fees which you might not be aware of but still you will get charged for this.

 

How To Choose A Student Checking Account?

Friday, July 24th, 2015

Student checking accountA student is not financially independent and stable. So if they are intending for a checking account, they will always prefer to have one which is less expensive and easily manageable. They will go for one which is easy in terms of fees, perks and accessibility. These are the factors to be kept in mind while choosing a checking account for the students. Usually students go for the university credit unions instead of banks. The preferable ratio of university credit unions is 88 times more as compared to banks. They put up a good fight.  Here is the detailed discussion about the three factors of choosing students checking account.

  • Accessibility factor should be considered

There was a FDIC survey conducted which revealed the fact that forty six percent of the respondents stated that the location of the financial institution is very important. It plays a vital role in choosing a checking account by the student. It becomes easy for them if the bank is nearby for them so that it becomes easy and quick to approach whenever needed. If the bank is close it becomes very convenient for the students. Along with this there should be surcharge free ATM in the campus or around the campus.

When seeing about the accessible and convenient banks or financial institution, how can you forget about the credit unions? Credit unions are comparatively smaller than banks and have lesser branches and ATM centers. To overcome their deficiency, many of the credit union indulges in shared branching and shared ATM centers. They allow the members to use the ATM and branch of others unions also for free. For computer savvy students, they are also availed with the option of the internet banking. In case of internet banks, checking accounts does not possess any fees for monthly checking, waived or reimbursed ATM or competitive interest rates.

  • Decide who has the lowest fees

It is next to impossible to find a checking account for free for those who are not students. In case of students you can find a free checking account. According to a survey, eighty two percent of the checking accounts of the students are free in banks and ninety nine percent of the students having checking account at credit unions are free. These are free along with no requirement of any minimum balance in the account. There is also a difference in the overdraft fees of each and every bank and ATM. Thus also check out the difference of the overdraft charges charged by the banks and credit unions.

  • If it is a tie bonus can increase the sale

Checking account of students comes along with the perks and freebies which is not received by those who are not students. Credit unions are so active that it gives refund of ATM surcharges and also give financial literacy classes. The perks received by this student’s checking account includes free swag to free cash only for opening an account. They also get gift cards for restaurant.

Wealth Management Tips for Financial Stability

Friday, May 22nd, 2015

Wealth ManagementWealth is an essential part of our life. And we always manage important things of our life. Wealth flies away like dust in the air if not managed and planned properly. We all desire big things in life and it’s our mentality that we can achieve it through hard work and strong determination. But we are wrong focusing on only these things is not sufficient. Along with earning the wealth, it’s also really important to maintain and manage that wealth. Thus here are few of the tips that will help in management of your wealth for attaining financial stability.

Manage your income and expenditure  

For planning your financial budget, what you need to do is make a total of your income then add income earned from any other sources and make a grand total of it. After that, make a list of your main expenses along with any subsidiary expenses. Now watch out if there is any expense with can be avoided and that money can be saved. If yes cut off that expense. You should make sure that you are not underpaid for any of your work done. Being underpaid even for a small amount can affect your finance at varied levels.

Make savings 

After preparing budget, you get a relative idea as of your expenses. The remaining portion of your income must be put to savings. Many of the people invest their extra income into property and jewelry and other sources which is also good but it’s very essential to have cash savings. So build up a rainy day fund. For making a regular saving tendency, automate the saving process. Let some portion of income go directly into the savings account. This will guarantee and safeguard your savings. And interest yielding savings are even better.

Be conscious before going into credit

Before going into credit, you must be sure you will be able to repay it timely. It doesn’t mean credit is bad and one should not opt for it. Go for it but be careful and sure. It doesn’t matter if it is a mortgage loan, unsecured loan or any of the credit card loans, but you should handle it with delicacy. It would be easy to procure loan if your credit history shows timely repayment. It will create a good impression on the lender. But beware don’t let the loan be accumulate and delay the payment which will create a negative impact.

Set attainable financial goal

Set your goals according to the capacity of savings. Set small goals and accomplish that goal. If you set a goal you need to save your finance for its attainment before some time. When you accumulate proper saving then accomplish your desire. Don’t forget while achieving small goals don’t forget to manage your finance for long term. Attain small goals which in turn let you lead to the real long term and more beneficial financial wealth management.

 

 

 

 

 

 

How to secure a pension plan?

Tuesday, August 12th, 2014

pension planAre you about to retire soon and looking for ideal pension plan? Well, the retirement is the time to relax after your years of hard work and hence you need to get hold of the pension plan that would accommodate a great life for you -even when you are not having the monthly salary. It is said that a retirement backed by a good pension plan is the ideal retirement. Now, there is a great bunch of pension plans around but not all would be compatible for your specific needs. Moreover there are many scam plans in the market as well. Thus, you need to be really careful while securing the best possible pension plan for you.

Before getting into the tips for securing a suitable pension plan it’s to note that you have to be careful about your needs or desires post retirement while choosing the pension plan. Whether you want to go out on a world tour or lead a quite life at the countryside- each of your needs will have a profound influence on your selection of pension plan.

Comparative study

This is one of the significant points while choosing the right pension plan which many tend to miss out. You have to take a thorough market study on minimum 5-6 potential pension plan providers before you finally sign up with the one. Follow the market reputation of the providers, service approach and customer testimonials. Besides, you should always check out key facts on each of the plans studied. The key fact is like the summary on the plan to ensure an easy understanding at a glance. The plan providers are bound to offer you the key facts & you have the right to complain if they aren’t acting accordingly.

If studying each of the providers individually seems strenuous, go for the comparison websites.

Check out contributions

You have to ensure that you are okay with the pension plan contributions. There might be some minimum payment requirement which the plan holder would have to submit to the provider. If you are on taut budget or struggling with irregular income, you have to check out beforehand whether you will comfortable with the contributions or not.

Be careful about charges

Check out what charges you would be paying & when. These would include transfer charges, administration fees, charges for investment management, penalties on payment miss out or early pull up of pension. Charges which are extracted from the policy holder’s fund would affect the pension amount he would be receiving end of the day. Charges for the stakeholder pensions tend to stay restricted to some set level.

Consult financial adviser

Before you finally sign up with a pension plan, it’s advised that you consult with an independent financial consultant. Pension plans are complex affairs and it’s not possible for a layman to understand the exact risks and benefits of the policies. A neutral financial consultancy would be an excellent help here to ensure a comprehensive grasp of all the points of the pension plans.

Paycheck Planning (Plan On How To Use One’s Paycheck Funds)

Wednesday, March 5th, 2014

Paycheck PlanningAre 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.

Automatic savings

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.

Paying debts

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.

How To Manage Your Finances As A New Parent

Friday, November 1st, 2013

new parent financeThis 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.

Smart Financial Tips For New Parents

Wednesday, October 23rd, 2013

Smart Financial TipsBecoming 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.

Recession survival strategy

Saturday, October 12th, 2013

Recession survival strategyIn 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.

Finding the right lender

Saturday, September 21st, 2013

right lenderAre you planning for loans and looking for the right lender? The increasing demands couples with skyrocket prices somewhat compel to seek help for money lending services. It could be that you are planning to buy a new house or aspire for an expensive auto. Well, whatever it is make sure that you land up with a reliable lender. There have many cases of fraudulent and dishonest lenders in the past and hence you need to stay smart while picking your lender. The post here is a short brief on the points to consider while locating your lender.

The first step to go for is a market survey. You have to conduct a study on at least 4-5 lenders in the present market. Different lenders offer different interest rates on the same loan and an effective comparative study will bring out the most compatible match for you. Apart from interest rates you would also have to compare the repayment period and the loan value. You can collect lender referrals from your relatives and friends or else can start searching online.

If you are searching the lenders all by yourself, make sure to go through the customer testimonials. The client testimonials will reveal a lot about the sincerity, integrity and the credibility quotient of the lender. In case, your chosen lender is infested by too many dissatisfied customer remarks, it’s better you shift your attention elsewhere.

Another important fact is the versatility of loan offers from the lender. A premier lender generally comes up with a wide range of loan packages top cater to varied customers. A versatile arrangement enables the borrower to pick as per his preferred budget and loan requirements. Make sure that your lender is always ready to advise in the picking the right loan policy as well as how to improve credit score.

Finding the right financial advisor

Saturday, September 14th, 2013

financial advisorAre you looking for a good financial advisor? The rising aspirations and sky high expenses today can easily make you go overboard if you are lacking in right financial planning. Financial planning is a complex affair involving several considerations which at times require an expert mind. If you are having difficulties in managing your finance properly, it’s better you take to a credible financial advisor. There are a good number of financial advisors in the market but not all can act as the perfect guide. Thus, the post below highlights on the points to check out before appointing your financial consultant.

First of all, you have to proceed with a good survey on a handful of potential financial advisors in the market. You can collect referrals from your friends and relatives or else make a search yourself online. Make sure that the advisor you are taking to holds all the needed certifications. It’s advised to check out the FINRA website here to find out the past transgressions (if any) of the advisor. Experience is another needed factor while you are checking out on financial consultant. A seasoned financial advisor is usually exposed to varied financial condition and hence would be able to guide you accordingly, irrespective of your financial situation. In case you need the advisor for specialized needs like financial consultancy for student or elderly, make sure your consultant holds a specialization way- actually financial management for students or seniors is always different than regular financial consultancy.

Then, your financial advisor must be easy to talk to. He should provide you ample time and space so that you can always be candid about your specific financial status, including all the pertinent issues such as debts or loans. Finally, it’s suggested that you take to a reputed financial planner who promises a flat fee for the service.