When To Shop for Insurance

When To Shop for Insurance
One of the best ways to make sure that you are getting the best rate for your insurance depending on your circumstances is to shop around. When you shop around you can compare your current rate with other rates from insurance providers.
There is many times where you…

finance

Personal Finance in your 20s

Personal Finance in your 20s

In your 20s there is an increasing demand on those paychecks with student loans to pay off, pressure to start saving for retirement and the expense of living. Here are some great tips to stay on top of your finances in your 20s.

finance

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Don’t Change How You Live

Your new job will usually require a new lifestyle that can be expensive. You will most likely need new office clothes, a place to live and maybe a new car. It is recommended that you can carry on living though like you are still a broke student even after you are employed. This gives you a chance to get a better handle on these new expenses you are faced with.

Live at Home

There are many graduate students that end up moving back home temporarily. Living at home will give you some financial flexibility where you can weigh up your finances; make a plan to pay student debt back and to create a budget that you can live in.

Limit Credit Card Debt

After college, credit card debt can easily mount up especially when expenses rise but you are still on a starter salary. Credit cards have a high interest rate and fees if you fail to make payments on time. It is best to avoid credit cards unless there is a real emergency.

Pay Off Any Debt

It might not always possible to pay off your debt in full every month. If you have some debt to deal with then you need to start paying this off as soon as possible. Start with the one with the lowest credit limit as you can damage your credit rating and be charged fees when you exceed the limit.

Put Student Loans on Autopilot

There isn’t much need to fast track the payments you need to make on your student loan. Make slow and steady payments each month for the term of the loan. If you do find you have extra cash then you can use this to pay the loan.

Insure Yourself

Ensure that you have rental insurance, health insurance and even life insurance because an accident or illness can become a massive problem and take their toll your finances if you are not covered.

Long Term Goals

Having big goals like buying a home can motivate you to start saving for it. You can then take advantage of compound interest and reach your goal a lot sooner.

Save for Retirement

You may think that retirement is years away, but saving as soon as you get your first job will make it easier for you to reach your retirement goals before the day arrives.

If you would like help with your personal finance, head to FinanceMan.

Alternatives to High Cost Loans

Alternatives to High Cost Loans

The fact is that when you borrow money it will cost money, but it doesn’t have to cost a lot.

loan

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With a loan it is important to manage the interest rate and the processing fees.

There are less expensive ways to get the money that you need. When you lower the cost of borrowing then the payments you make will go further in reducing your debt.

Signature Loans

A personal loan is a traditional loan that you are able to get from a bank or from a credit union. This type of loan is usually cheaper then a payday loan, title loan and a credit card.

A personal loan usually has a low interest rate that is often fixed for the period of the loan.

The processing fess should also be low.

With a personal loan you receive a lump sum of money that is enough for you to do what you need to do. You will then need to make your repayments every month until the loan is paid off.

A part of your monthly payment will go towards reducing the principal amount and the other part will cover the interest.

Person-to-Person Loans

This is a variation of a personal loan where you will borrow money from individuals instead of a bank.

The individuals could be people that you know or complete strangers who are willing to lend you money over a P2P website.

If you have poor credit or irregular income then you might find it easier to qualify for this type of loan, but you must make sure you can repay the loan.

Everything about the loan and its terms should be in writing especially with friends and family and larger loans can be secured with a lien.

Balance Transfers

If you have good credit then you might be able to borrow at a low rate for a period of time and take advantage of balance transfer offers.

You may find that you will have to open a new credit card account for this or you could get convenience checks from your existing account.

A balance transfer can work if you know that the loan will be short. This will work if you pay the full amount before the promotional period ends, otherwise you will be looking at paying high interest rates.

Home Equity

If your home has plenty of equity then you can see if you are able to borrow against it. A second mortgage usually has low interest rates, however you do risk your home by doing this if you can’t keep up with the payments.

Smaller Institutions

Smaller banks and credit unions will still look at your income and credit, but they might be more flexible than bigger banks.

Pledge Collateral

If you have assets you might be able to use these as collateral in order to get a loan. You should first try banks and credit unions before going to storefront financing.

Partnering Up

You might be able to qualify with the help of a co-signer. If you know someone that has good credit and a fair income then lenders will use their information to approve the loan. If you fail though on the repayments then the co-signer will have to pay.

If you are in need of a personal loan, then head to FinanceMan.

Credit Card VS Personal Loan

Credit Card VS Personal Loan
When you need to cover an expense then you might consider a credit card or a personal loan. Your situation will decide which of these is the best option for you.
Credit cards are better for short-term balances that you are able to pay each month and personal loans…

personal finance

Good Personal Finance Habits Everyone Should Follow

Good Personal Finance Habits Everyone Should Follow

When it comes to personal finance there are some good habits that you need to employ.

personal finance

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Live Within Your Means

There is no point in setting good financial goals until you learn how to live beneath your means. This habit is not strategic in any sense; it just means that you learn to live with what you have and bank the rest. Your financial situation will improve as your savings and investments grow.

Buy Value

This means that you do not buy the cheapest goods or the most expensive. You should look at buying the best value for money. It can be worth to pay a little extra for a product that you know will last rather then buying something that you know you will have to replace.

Keep in mind though that not all products are better just because they are more expensive.

If You Have to Borrow, then you Can’t Afford It

Credit is a great thing when you are making a big purchase like a car or a house. People don’t generally have that amount of money in cash to buy these things, so borrowing does make sense. Good financial habits though means that you should avoid schemes that stretch your paycheck.

Pay Your Bills Before they Due

Paying bills late is another way to stretch your paycheck. This will just give you a false sense of how much money you have and this will put you under strain to cover the difference later.

Paying your bills ahead of time will give you more control over your finances so this will make it easier to have good financial habits.

Track Your Spending

If you do not have a budget then you will probably not have a clue where your money is going.

You then need to track your spending so that you can identify the areas of excess.

Shop Without Your Credit Cards

This will stop you from running up credit card balances, so you need to learn to shop with cash or your debit card. This will generally lead to you spending less as you don’t have the option of paying it off later.

Pay More than the Minimum on Your Credit Cards

If you are carrying a balance on your credit card then you need to start paying more than the minimum on time. This means that you will be able to pay off your credit card quicker.

Walk Away

This is important when you are shopping or out and about. You need to get in control of your impulse buying. When you start to shop online or buy something that doesn’t cost much, but do this a few times a week then the cost will really start to add up.

You can use the 72-hour rule, which is where you wait this amount of time for an item before you buy it. This will give you an idea of you really needs the item or if you just want it.

Refresh Your Emergency Fund

Everyone should have an emergency fund, but this should also be refreshed and replenished once you have taken the money.

Review your emergency fund every year and determine if it is able to cover your living expenses for 3 to 6 months. If it can’t then you need a plan to refresh it.

Cut Down on your Spending Allowance

Even those that budget can become slack when it comes to their personal spending and what they have allocated. This is the money that you use for entertainment and other casual spending.

Everyone needs a certain amount of free spending but you need to ensure that it doesn’t get out of control.

These are just some of the things that you can do, but there are plenty of more habits that you can employ.

If you would like to know more about personal finance, head to FinanceMan.