Archives for September 2010

Don’t Fixate On Income When Investing

Everyone needs to save money for a rainy day. To achieve this, you can look at different ways to increase your income and boost your savings. One of the most popular ways to get additional income is investing.

Investing requires a certain degree of calculation and risk assessment. You need to understand the risks involved and employ the safest means to get a good return. With most people considering long term locking-in of capital too risky, they are increasingly investing in stocks and bonds that give a continuous stream of income. However, if you fixate on a portfolio that is not diversified enough in terms of cash flows that it generates, you may lose money in the long term. [Read more…]

How to Keep Your Finances on Track

The degree of economic contraction that the country has suffered in the past few years is nothing short of phenomenal. People are picking up the pieces, and for now, things seem to be progressing in the right direction. Your personal finances must have suffered some serious setbacks as well. Since you cannot accurately predict when such a situation may occur again, you need to figure out ways to stay financially stable to withstand these events. [Read more…]

Retirement Investment Tips

The one thing certain in the investment world is that there are no certainties. With the stock market crash, investors stopped buying stocks and concentrated on buying bonds. Billions of dollars have been invested in bonds and bond ETFs recently. But if you are thinking of putting all your 401(k) money into a single bond, you could be making a big mistake. [Read more…]

When Should You Refinance Your Mortgage?

People who choose adjustable rate mortgages end up realizing that fluctuating lending rates can be a spanner in the works when it comes to budgeting. Worse still, if interest rates stay consistently high, they may be in danger of paying much more than they initially thought.

That is why when interest rates fall, it is a good idea to refinance your floating rate loan with a fixed rate mortgage to gain more time to repay and avail lower interest rates. Refinancing is a good option if you are paying variable monthly installments and wish for more consistent (and sometimes lower) payments. [Read more…]

Build Savings Early for a Comfortable Retirement

If you want to retire in comfort after all those years of hard work, you need to start saving early. It is very important to save a portion of your income without fail if you want to maintain a good standard of living after retirement. How much you save depends on your salary, job-stability and expenses, but once you’ve decided on a particular percentage of salary, always stick to that percentage.

You should remember that you can save a much higher percentage of your income when you are in your 20’s and early 30’s. This is because you might not have dependents and your expenses will consequently be lesser. Financial experts say that working professionals in their 20’s and early 30’s must save about 25% to 35% of their income.

You should also contribute more to your 401(k) and save any bonus that you get from your company. Make sure you pay off all those college loans as quickly as you can. Do not splurge on expensive gadgets, cars and designer brands even if you have of a good income, until you are already meeting your savings goals.

If you are in your late 30’s and early 40’s, you need to save at least 10% to 15% of your income. This is the period when expenses increase as you might have kids. It will be more difficult to build savings in this period, but you should plan your budget carefully and always adhere to it. Involve your spouse and children in the budget making process.

Apart from setting aside money, you can consult a financial advisor on investments, taxes and other ways of saving or growing your money. For example, investments in equities and bonds can yield substantial profits, so make sure you have a low-risk portfolio of stocks, bonds and mutual funds. [Read more…]

Can You Trust Debt Settlement Companies?

You will find many tempting offers by companies claiming that they can settle your huge debt for a small amount. Many people may be lured by these promises, but in reality, these promises are hollow and there is no way of getting away by paying a small part of your debt. [Read more…]

Plan Your Monthly Budget to Stay Financially Sound

People today are far more budget conscious than they were two years ago. With the economy not in a great shape, consumer spending has gone down and businesses have been offering promotions and discounts to boost their sales. It may be tempting to spend your paycheck on all those great offers, but your priority right now should be to save sufficient money for important things like paying for your children’s education or your family’s medical bills. Here are some tips on how you can start saving more money every month: [Read more…]

Student Loan Consolidation Calculator

People who have acquired student loans from different sources get into a lot of trouble. First, there’s this hassle of having to remember all the loan payments with different due dates. Then there’s also the trouble of having different interest rates. Some of which are too high to bear. People who want to solve these problems need to apply for a student consolidation loan. It’s not just for easing the budget but works well with having to gather all the due dates to just one. [Read more…]

When to Get VA Home Loans

Being able to call a home your own should no longer be just a dream. Indeed, with different banks and financial corporations offering different types of loans, making that dream home come true for your family should not be difficult at all. Moreover, if you have been in the military service for quite some time, you should be eligible for VA home loans! [Read more…]