Archives for October 2010

Tips for Shopping on a Budget

Most people in a financial crunch fear shopping expeditions the most. These are often the times when money simply flows out of your pockets without your even realizing it. However, it is impossible to eliminate shopping completely. After all, you do need the groceries, staples, consumables and other essentials. These tips will help you shop wisely so that your spending is limited well within your budget.

Build Loyalty

Shopping with one specific store often pays off. All big stores generally have ‘loyal customer’ cards on which points accumulate every time you make purchases there. These points can be exchanged for other goods or in some cases, discounts. If you have a reasonably priced store nearby, then make a conscious decision to complete all your shopping when you visit it. Ask the store personnel for a Loyalty card or a frequent shopper card and make sure every purchase gets recorded against it.
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Tax Attorneys for Your Legal Problems

Ideally, every taxpayer should file his/her income tax returns before April 15th every year. The tax filing process is not exactly a cakewalk and you could encounter some problems, even if you are not at fault. Tax filing procedures and timelines that are not adhered to can sometimes result in penalties, from a fine to even prison time. If you are not sure about the tax filing process, it is wise to hire a good tax attorney to help you out of your predicament.

Don’t try to fix the problem on your own by calling the IRS and explaining the issue. Internal Revenue Service (IRS) agents are trained to investigate and collect evidence used in criminal proceedings. They may seem helpful but remember that any statement you make may be used against you in a court of law.
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Retirement Solutions: An Introduction to 401(k) Plans and IRA

401(k) plans and IRAs are two of the most popular ways of building a retirement fund. Here is a brief overview of these two options:

401(k) plans

401(k) plans are primarily employer-sponsored retirement plans for employees. Under these, the company can offer you some investment options to choose from. The 401(k) account is managed by the employer, where they deposit a part of your wage along with a matching contribution from the company. These funds are invested by investment experts, depending on your plan options, into various instruments.
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Protect Your Debit Card from Scams

Today, a huge percentage of people with a bank account have a debit card too. These cards are gaining in popularity against the previously all-pervasive credit card. But you have to be careful when using these cards so that you don’t put the funds in your bank account at risk. Here are some tips:

While debit cards are certainly convenient to use, they can cause serious financial problems if you are unaware of the risks involved. Fraudsters can steal your debit card details and use them to drain your bank account. There has recently been a huge spurt in this type of criminal activity. There are three main scams that you need to be aware of:
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Refinancing Equity Loan

Refinancing equity loan has become a very popular option for individuals who setbacks in their personal finances and who need to cushion the impact of the recent economic crisis. There are a lot of factors that lead people to enter into loan refinancing contracts. One of the major factors is that the negative impact of the crisis in the cashflow of families, for example. Since the crisis started, many families have been seeing their cashflow thinning out, compelling them to find better alternative to accessing cash.

Companies that are involved in refinancing equity loan address this need by lowering the interest rates that debtors need to pay, giving them extra cash to spend on other essentials. If you are thinking of refinancing equity loan as an option, there are certain important things that you should know and keep in mind.
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How to Avoid the Debt Trap

Post recession, many Americans found themselves barely keeping their heads above overwhelming debt they had incurred through various ways.

The most common way of incurring unmanageable debt was through excessive use of credit cards. But this is, by no means, the only danger area. There are many ways in which you can let yourself become exposed to a debt trap. Here are a few tips on staying clear of debt:

Build an emergency fund

Many people, who are otherwise conservative spenders, end up with enormous debt when emergencies catch them completely unprepared. It might be a home repair or a medical emergency that forces you to take a loan.

No matter what the underlying cause, when the emergency is upon you, you do not have the time or the clarity of thought to search for competitively priced loans. You simply opt for the easiest to get, fastest to process or simplest to understand loan. Unfortunately, it is these loans that are often also the worst.
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Use Your Credit Card Wisely

As credit card delinquency rates continue to fall from the 26% level last year, it is inevitable that credit card companies will soon put their marketing skills into overdrive. New credit card offers are beginning to flow in from various companies to customers who have maintained a good credit record post-recession. In fact, the 0% card offer is also making a comeback now.

None of these signs mean that you can afford to relax your firm control over spending using this piece of plastic. In this climate of over enthusiastic advertising and tall claims from credit card companies, it is important to be doubly careful of how you are managing your credit card.
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Cutting Down on Expenses to Get Rid of Debt

If your world has come crashing down and creditors are after your life, remember there is always a way out of every problem. If you are debt-ridden, you can still pay it all off with some planning and personal sacrifices. You got yourself into this financial mess and you can get yourself out of it as well. You simply have to be judicious with your money during this period. A drastic cut down on expenses will help you save enough money to pay at least a part of the money you owe.
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How to Choose the Right Home Insurance

Insuring your home should be among your top priorities, no matter what your income level or financial condition is. It is much more important than some other insurance options, like auto insurance. After all, you can live without your car for a while but you cannot live without a roof over your head and you might not be able to afford major home related expenses with your savings alone. Your home is your most important and valuable asset and you should have adequate insurance on it.

Don’t Pinch Pennies

The most important aspect of home insurance is to make sure you are not underinsuring. There is simply no point in having your insurance pay up an amount that is not enough for your house. In event of any damage to your home, the insurance should pay as much as is required to rebuild the house. [Read more…]

Why Real Estate is Still a Good Investment

A few years ago, before the recession and the housing crash drowned out these notions, almost every investor big and small swore by his investments in real estate. The idea that property was the one investment that was a sure fire winner was so common that it was practically an axiom. Then the housing bubble burst, leaving investors with huge debts and property on their hands that was speedily spiraling downwards, value wise.

In spite of several shoring up efforts, housing is yet to regain the ground it lost. Home values are still low and the buyer is still playing the dominant role in this market. However, in spite of the dramatic decline in the market, real estate is still a good investment. [Read more…]

Save Money by Refinancing Your Mortgage

There could be many advantages of refinancing a mortgage, like lower monthly payments and getting a longer time to repay the loan. If you are having difficulty in making your mortgage payments, you should seriously consider refinancing the mortgage to get better terms. Even if you can afford your current mortgage, you can reduce the costs of your home loan through refinancing.

How to Go About It

When you decide to get your loan refinanced, the first person you should approach is your existing lender. The lender might be willing to refinance your mortgage at competitive terms and you may not need to look further. If you have made timely payments and have a good relationship with the lender, the whole process should go smoothly. [Read more…]

Financial Tips for Married Couples

Marriage brings together two individuals who may have strong individual views on everything from sports, clothes, food to financial goals. For a successful marriage, managing the family’s finances amicably is one critical area. Many separations and divorces take place when partners fail to come to an agreement about money management in the family. Here are some tips that will help married couples handle their joint finances in perfect harmony.

Accept Different Opinions

The first and the most basic rule is to accept that your partner need not necessarily have the same views as you about your financial goals. Your partner may want to save for future medical expenses while you may think your current emergency fund is enough. You may think vacationing is an essential expense and needs to be saved for, while your partner may think it is extravagant. This is inevitable and unavoidable. Once you accept this, financial management gets easier.

Discuss Your Views

It is important for both of you to discuss your views and arrive at a mutually acceptable conclusion about what the priorities of your family should be. Remember that these may be very different from your personal priorities.

Ideally, this discussion should take place even before marriage. But it can certainly be done after marriage too, provided both partners agree to act as responsible, mature adults who can put the family’s needs before their own.

Are Two Pay Checks Better Than One?

If both partners are employed, there are some important points to consider. Do two paychecks coming in every month really mean more money? It may not always be the case. Check if the double income puts you in a higher tax bracket so that you end up paying much more by way of tax than the second paycheck brings in. If so, seriously consider quitting that job. Remember that there are costs associated with earning that paycheck – transportation to and from work, day care for kids while you are at work, work wardrobe etc. [Read more…]

Generate Cash from Unused Household Items

All of us have stuff lying around the home that has not been used in ages. These clutter your home and occupy space. What’s more, by selling some of these items you can generate some much needed cash in this difficult economy. Here’s how to go about clearing up these household articles.

Identify What You Can Get Rid Of

If you haven’t used an item in the past 6 months or more, chances are you won’t miss it. Items like these can be disposed off. Go through your storage spaces and collect all items that haven’t seen the light of day in 6 months or more. These can all be put to better use. Once you have collected all your disposable items, it’s time to classify them into what you can give away, what can be sold, and junk. [Read more…]

Should You Buy or Rent Your Home

A comfortable and nice home is one of the essentials to a happy life. When it comes to the house, most people face the dilemma of whether to rent a home or buy one right away. There are loyal supporters of both arguments, as each option offers some unique advantages. [Read more…]

How Much Saving is Enough for Financial Independence

The economy is still floundering and the fear of being unable to meet future expenses continues to loom large in the minds of most people. Savings are at an all time high with conservatism being the key characteristic of all investments being made in recent times. Saving is fine, but there is a limit to how much you need to save.

Avoid Penny Pinching

Post recession, many people tend to overdo saving by putting away every spare cent. This may give you a confident feeling for a while as you watch your emergency fund grow. But sacrificing every little ‘extra’ can get awfully tedious and frustrating. In fact, denying yourself those little extra pleasures often ends in a hugely expensive shopping spree where you simply end up throwing money. Give yourself a break and allow a small ‘fun spending fund’ for every month to keep your spending urge in control. [Read more…]

The Differences Between Fixed Mortgage Rates and Adjustable Mortgage Rates

There are so many different kinds of mortgage loans that you may feel overwhelmed when looking for one. The key factors that distinguish one mortgage loan from another are the rate of interest, loan tenure, payment amount and prepayment clauses. The most common mortgages are fixed rate and adjustable or variable rate mortgages. You should go about choosing one of these mortgages based on how much risk you can afford to take, and how long you intend to live in your present residence. [Read more…]

It’s Never Too Late to Start Investing

Earning a steady income gives you the financial support you need for as long as you work. But by the time you reach retirement age, you should have enough money saved – through 401ks, annuities, IRA funds, or any other fund – to live the rest of your life comfortably.

The earlier you start saving, the more you will end up with. If you’re already close to retirement and have not put aside much, you may face some difficulties when you stop working, but it is not too late to act now. There are many options that are available that will help you earn good returns over the next few years. Start assessing the possibilities immediately and you may still be able to manage a comfortable post retirement life. [Read more…]