Many financial experts highly recommend a household budget in order to keep family spending and savings goals on track. It makes sense that proper money management for a household is a necessity to ensure financial security for all family members. For those who do not yet have families, it is equally important to establish a budget to prepare for the future as well as survive day to day, especially when single individuals are just starting out on their own, financially independent from their parents.
Why Singles Need Budgets
Overspending income is the reason why so many people are facing debt problems. With a budget you can properly account for where all of your money goes on a weekly or monthly basis. Without a budget, it can be all too easy to spend cash as a single person because outside of basic financial obligations, there are likely no other responsibilities to tend to such as children who need things or spouse who should have a say in money matters.
As a single person without a budget, it is also easy to lose sight of the big picture. Spending what you earn as you earn it leaves little room for saving for the future or building a truly solid financial foundation.
How to Start a Single Person Budget
A budget is simple to get started. Sticking with the methods is what gets many people who end up ceasing their good financial habits. It makes sense to develop a simple budget that allows you to make simple entries that doesn’t waste time. A weekly review of a budget is all it really takes to ensure you are on target.
Developing a budget requires that you gather all of your financial obligations for a month including utility bills, credit card bills, mortgage or rental payments, and any other monthly expense paid out on a regular basis. You will also need to gather your income statements so you know how much you bring home each month.
These amounts along with the creditors who receive your monthly payment should then be listed on a personal budget worksheet. Once all of the information is entered, the total amount of expenses should be deducted from the total amount of income. If the difference is negative, it is a clear sign that you need to make cuts to your budget or find a way to earn more money. If there is an overage, the funds that are ‘left over’ each month should be allocated into a proper savings account for emergency situations, vacations, or retirement.
In addition to the compilation of expenses and income, single consumers should also take a solid month to track the money they are spending and where they are spending it. This is for all expenses outside of regular financial obligations, including coffee stops, dining out, and transportation-related expenses. By tracking every penny spent in a month’s time, you are able to develop a more accurate budgeting system and as a result, establish a much more solid and reliable financial foundation for the future.
This is a guest post by Tisha Tolar.
Tampilkan postingan dengan label Guest Post. Tampilkan semua postingan
Tampilkan postingan dengan label Guest Post. Tampilkan semua postingan
Kamis, 15 September 2011
Jumat, 12 Agustus 2011
Refinancing Your Mortgage: What You Should Know Before You Do
Refinancing your mortgage may seem like a godsend at the moment, but before you jump in headfirst, there are some things you should know. For instance, are you prepared to shop around with at least three different lenders and three different title companies? Even though you might do less paperwork with your current lender, others might be able to offer you better rates, so it's definitely worth checking them out.
Here are some of the other things you should think about with a refinance.
There may be extra fees involved
All too often homeowners get caught up in that one little number – the interest rate. Sure, a drop of a half a percentage or more can save you big bucks on your monthly payment and on the total interest you'll pay for your home. However, you have to remember that refinancing comes with some of the same fees involved in buying a home originally, so the interest rate change may not end up saving you all that much after all.
Another thing to consider is something plaguing homeowners today: do you owe more on your home than it's worth? A high loan-to-value ratio these days can mean extra fees for your refinance, as the company doing your refinance has to protect itself, too. You might even end up paying private mortgage insurance, which can increase your monthly payment by $100 or more a month.
So, before you refinance, make sure you look at all the numbers and take everything into account. Unless you're getting significant interest rate savings, the refinance may not save you that much money after all.
You could tack more years onto your mortgage
Another thing to consider with a refinance is what loan term you'll use for the refinanced loan. Many homeowners who have been in their homes for five years or more take out another thirty year loan, not considering that it will be yet another five years before they pay off the house. Thirty-five years is a long time to be paying on one home!
In some cases, a longer-term mortgage may make sense, especially if the lower monthly payments mean keeping your home instead of going into foreclosure. In some cases, it may be in your best interest to pay extra on another thirty year mortgage, which will pay it off earlier and save you money. However, in many cases, it's better to take out a shorter-term loan – like a fifteen or twenty year – depending on how much you have left to pay off after the refinance.
Just keep in mind that by taking out another thirty year loan, it will take you some time to get traction in your mortgage and start paying off the principle significantly, so this is really only a good option if you plan to stay in your home for a while.
Find your break-even point
The best way to determine whether or not a particular mortgage deal is a good one for you is to find your break-even point. This is the point at which the extra costs of refinancing will break even for you. If you plan to be in your home through or well past your break-even point, then a refinance could be a good option for you. If not, though, it's probably better to hold off and just sell the house when you're ready.
There are plenty of great online calculators that will help you determine your break-even point with the best refinancing deal you can find.
Keep your credit score up during the refinance
Finally, just like when you're buying a house, when you're refinancing, you need to be sure that your credit score stays up the entire time – until your rates are actually locked in. Most lenders will quote you a rate at the outset of the refinancing process but will check your credit score again before locking in that rate.
One of the best ways to keep your credit score high during a refinance is to cut back on credit card usage. Use your cards responsibly, and pay off new balances every month. If you can, try to pay down your balances a little, too, so that your credit score is even a little higher at the end of the refinancing process than it was at the beginning!
This is a guest post by Katheryne Taylor.
Here are some of the other things you should think about with a refinance.
There may be extra fees involved
All too often homeowners get caught up in that one little number – the interest rate. Sure, a drop of a half a percentage or more can save you big bucks on your monthly payment and on the total interest you'll pay for your home. However, you have to remember that refinancing comes with some of the same fees involved in buying a home originally, so the interest rate change may not end up saving you all that much after all.
Another thing to consider is something plaguing homeowners today: do you owe more on your home than it's worth? A high loan-to-value ratio these days can mean extra fees for your refinance, as the company doing your refinance has to protect itself, too. You might even end up paying private mortgage insurance, which can increase your monthly payment by $100 or more a month.
So, before you refinance, make sure you look at all the numbers and take everything into account. Unless you're getting significant interest rate savings, the refinance may not save you that much money after all.
You could tack more years onto your mortgage
Another thing to consider with a refinance is what loan term you'll use for the refinanced loan. Many homeowners who have been in their homes for five years or more take out another thirty year loan, not considering that it will be yet another five years before they pay off the house. Thirty-five years is a long time to be paying on one home!
In some cases, a longer-term mortgage may make sense, especially if the lower monthly payments mean keeping your home instead of going into foreclosure. In some cases, it may be in your best interest to pay extra on another thirty year mortgage, which will pay it off earlier and save you money. However, in many cases, it's better to take out a shorter-term loan – like a fifteen or twenty year – depending on how much you have left to pay off after the refinance.
Just keep in mind that by taking out another thirty year loan, it will take you some time to get traction in your mortgage and start paying off the principle significantly, so this is really only a good option if you plan to stay in your home for a while.
Find your break-even point
The best way to determine whether or not a particular mortgage deal is a good one for you is to find your break-even point. This is the point at which the extra costs of refinancing will break even for you. If you plan to be in your home through or well past your break-even point, then a refinance could be a good option for you. If not, though, it's probably better to hold off and just sell the house when you're ready.
There are plenty of great online calculators that will help you determine your break-even point with the best refinancing deal you can find.
Keep your credit score up during the refinance
Finally, just like when you're buying a house, when you're refinancing, you need to be sure that your credit score stays up the entire time – until your rates are actually locked in. Most lenders will quote you a rate at the outset of the refinancing process but will check your credit score again before locking in that rate.
One of the best ways to keep your credit score high during a refinance is to cut back on credit card usage. Use your cards responsibly, and pay off new balances every month. If you can, try to pay down your balances a little, too, so that your credit score is even a little higher at the end of the refinancing process than it was at the beginning!
This is a guest post by Katheryne Taylor.
Jumat, 01 Juli 2011
How Do Insurance Companies Determine Your Life Insurance Premium?
Understanding how life insurance companies determine their premium rates can help you get better life insurance rates!
Life insurance companies work with actuaries and underwriters to calculate the risk of insuring your life. There are several factors they consider that influence these rates. You may find that some of these factors are modifiable in your life. In order to fall into a premium classification that offers better rates, all you have to do is work on those modifiable factors.
Life Insurance Rates
Life insurance is a business, and in order for any business to remain healthy, there is a reasonable amount of profit that must be made. Life insurance companies profit from probabilities. A major factor they consider is your probability of dying soon. Looking at your personal profile, life insurance underwriters determine the probable age you will die. If you’re likely to die soon, they will charge you a higher premium rate. Conversely, if you are likely to live a long life, your premium rates will be much lower. To make it simple, life insurance companies will divide people into at least four different groups based on their personal profile and consequent risk of death. In descending order of preference, these are usually referred to as:
Factors that determine your life insurance rates
Age
Mortality rates are tools that underwriters use to determine the risk of insuring your life. For this reason, those who are young usually get the best life insurance rates. The older you are, the more likely you are to have health concerns. The premiums for a 20-year old will be significantly higher than premiums for a 65-year old, even in good health. Buy life insurance when you are young and lock those rates in for a long-term period!
Health
The second most important factor that determines your premiums is your health. Those who are young, and in top health, will be offered the Best Preferred rates. By purchasing a level-term life insurance policy at an early age you can lock in those rates for the entire term period.
Most life insurance companies require you to undergo a medical examination that is conducted by a company-appointed medical officer. Being slightly overweight or having a higher than normal blood pressure can knock you down to the next premium rate class. Other factors that are considered are high cholesterol counts, diabetes, any medication taken regularly, and mental health. A company may also look at your family health history to check whether there are any genetic dispositions. Health may not always be an area we can control, but following a good diet, incorporating a daily exercise regime and practicing weight management may help!
Your Occupation
Life insurance companies check out the kind of job you do and your workplace environment. If your job exposes you to dangerous health risks, requires extensive travel, or is considered a high-stress job, be prepared for higher premium rates. A safer job would attract low cost life insurance rates.
Your Hobbies
You may not think it matters, but the type of hobbies you engage in may be considered a risk to your life. Some of these hobbies may include skiing, bungee jumping, rock climbing, scuba diving, car racing, or any other such extreme sports. Engaging in one or more of these activities on a regular basis may cost you in terms of premiums that you will need to pay.
Smoking
If you are a tobacco user, you will qualify for smokers’ rates. Tobacco, in any form, is dangerous to health, and will substantially increase your premium rates by 20 to 30 percent. To give you an incentive to quit smoking, some companies will offer you better rates if you can prove you have quit smoking for at least a year.
Your Credit Card Score
What does your credit score have to with your life insurance rates? The way you handle your money may give life insurance companies a little more insight on your personality traits. If you’re rash with your spending, you may be applying same principle to your health.
It must be noted that if your risk of death is extremely high, a life insurance company holds the right to deny you any coverage. However, you need to remember that just because one life insurance company gives you standard rates, this does not mean that another life insurance company will not hike you up to preferred class. While life insurance companies generally use the same criteria to determine life insurance rates, they may specialize in some areas in order to give them a competitive edge over other companies. For instance, most life insurance companies will charge you higher premiums if your cholesterol is above normal. But, there are some life insurance companies that will combine this fact with other factors in your life, such as your weight, age, job and lifestyle. If all other factors are favorable, you may be eligible for better rates these life insurance companies.
In many cases, it is possible to obtain better premium rates by kicking the smoking habit, losing a few pounds, or even changing jobs or hobbies!
Compare Life Insurance Rates
Online life insurance quote providers have made it easier than ever to compare life insurance rates of top-rated life insurance companies all in one go! Their huge database instantly locates life insurance carriers that specialize in the weak factors of your personal profile, making it easy for you to obtain the best life insurance quote that suits your personal needs!
This is a guest post by Denise Mancini.
Life insurance companies work with actuaries and underwriters to calculate the risk of insuring your life. There are several factors they consider that influence these rates. You may find that some of these factors are modifiable in your life. In order to fall into a premium classification that offers better rates, all you have to do is work on those modifiable factors.
Life Insurance Rates
Life insurance is a business, and in order for any business to remain healthy, there is a reasonable amount of profit that must be made. Life insurance companies profit from probabilities. A major factor they consider is your probability of dying soon. Looking at your personal profile, life insurance underwriters determine the probable age you will die. If you’re likely to die soon, they will charge you a higher premium rate. Conversely, if you are likely to live a long life, your premium rates will be much lower. To make it simple, life insurance companies will divide people into at least four different groups based on their personal profile and consequent risk of death. In descending order of preference, these are usually referred to as:
- Best Preferred
- Preferred
- Standard
- Smokers
Factors that determine your life insurance rates
Age
Mortality rates are tools that underwriters use to determine the risk of insuring your life. For this reason, those who are young usually get the best life insurance rates. The older you are, the more likely you are to have health concerns. The premiums for a 20-year old will be significantly higher than premiums for a 65-year old, even in good health. Buy life insurance when you are young and lock those rates in for a long-term period!
Health
The second most important factor that determines your premiums is your health. Those who are young, and in top health, will be offered the Best Preferred rates. By purchasing a level-term life insurance policy at an early age you can lock in those rates for the entire term period.
Most life insurance companies require you to undergo a medical examination that is conducted by a company-appointed medical officer. Being slightly overweight or having a higher than normal blood pressure can knock you down to the next premium rate class. Other factors that are considered are high cholesterol counts, diabetes, any medication taken regularly, and mental health. A company may also look at your family health history to check whether there are any genetic dispositions. Health may not always be an area we can control, but following a good diet, incorporating a daily exercise regime and practicing weight management may help!
Your Occupation
Life insurance companies check out the kind of job you do and your workplace environment. If your job exposes you to dangerous health risks, requires extensive travel, or is considered a high-stress job, be prepared for higher premium rates. A safer job would attract low cost life insurance rates.
Your Hobbies
You may not think it matters, but the type of hobbies you engage in may be considered a risk to your life. Some of these hobbies may include skiing, bungee jumping, rock climbing, scuba diving, car racing, or any other such extreme sports. Engaging in one or more of these activities on a regular basis may cost you in terms of premiums that you will need to pay.
Smoking
If you are a tobacco user, you will qualify for smokers’ rates. Tobacco, in any form, is dangerous to health, and will substantially increase your premium rates by 20 to 30 percent. To give you an incentive to quit smoking, some companies will offer you better rates if you can prove you have quit smoking for at least a year.
Your Credit Card Score
What does your credit score have to with your life insurance rates? The way you handle your money may give life insurance companies a little more insight on your personality traits. If you’re rash with your spending, you may be applying same principle to your health.
It must be noted that if your risk of death is extremely high, a life insurance company holds the right to deny you any coverage. However, you need to remember that just because one life insurance company gives you standard rates, this does not mean that another life insurance company will not hike you up to preferred class. While life insurance companies generally use the same criteria to determine life insurance rates, they may specialize in some areas in order to give them a competitive edge over other companies. For instance, most life insurance companies will charge you higher premiums if your cholesterol is above normal. But, there are some life insurance companies that will combine this fact with other factors in your life, such as your weight, age, job and lifestyle. If all other factors are favorable, you may be eligible for better rates these life insurance companies.
In many cases, it is possible to obtain better premium rates by kicking the smoking habit, losing a few pounds, or even changing jobs or hobbies!
Compare Life Insurance Rates
Online life insurance quote providers have made it easier than ever to compare life insurance rates of top-rated life insurance companies all in one go! Their huge database instantly locates life insurance carriers that specialize in the weak factors of your personal profile, making it easy for you to obtain the best life insurance quote that suits your personal needs!
This is a guest post by Denise Mancini.
Kamis, 16 Juni 2011
6 Debt Reduction Tips to Keep You in Sound Financial Health
Debt is a curse. The sooner you put in efforts to reduce the level of debts that you owe, the better it is for you. To reduce your debts substantially, the debt relief programs are of paramount importance. This is nothing but partial or total elimination of debt as well as stalling debt growth. Here is a list of some debt reduction strategies that you can follow to curb your debts significantly.
(1) Don't incur debts
In majority of the cases, you fall into debt because of your own imprudent financial behavior. Don't use your credit cards recklessly. Take out loans only to purchase home or car. Try to live within your means. In fact, if you can successfully limit your spending below your income, you will never fall into a debt situation.
(2) Create a realistic budget
It is very important to build up a realistic budget. You categorize your items of expenditures and then allocate money to each category. Make sure that you don’t spend beyond the amount allocated to each category. This will indeed be helpful to keep a lid on your spending behavior. Your budget should be such that you are able to contribute some money to the emergency fund. The emergency fund can be utilized to meet unintended expenses.
(3) Be well aware of your liabilities
When you have fallen into debts, you have to be well aware of how much you owe to others. You should be well-acquainted with the monthly payments that you have to make, your interest payments as well as the outstanding balances. Don't default in making payments. Only regular payments on your debts can make you debt free.
(4) Close credit card accounts
It is not a wise financial behavior to keep many credit cards. And, if you already have many credit cards, it would be wise to close as many credit card accounts as possible. The underlying rationale to keep less number of credit cards is to curb the temptation to abruptly spend money using cards.
(5) Make more than minimum payments
Make efforts to pay more than your monthly payments. Use the additional amount of money to pay off your lowest outstanding debts. This helps you pay off your lowest outstanding debts even before the scheduled time period. And, once you have successfully paid off your lowest outstanding debts, switch your target to the next lowest outstanding debts. Persist with this process. This helps you clear off your entire debts in a relatively shorter period of time.
(6) Seek professional help
Sometimes, it is a good ploy to seek professional help to repay your debts. A debt relief company can negotiate a pay off strategy for you after working with your creditors.
These are indeed smart tips that you can start following from today only. Seriously following these tips, will keep you in good financial condition.
This is a guest post by Nancy.
(1) Don't incur debts
In majority of the cases, you fall into debt because of your own imprudent financial behavior. Don't use your credit cards recklessly. Take out loans only to purchase home or car. Try to live within your means. In fact, if you can successfully limit your spending below your income, you will never fall into a debt situation.
(2) Create a realistic budget
It is very important to build up a realistic budget. You categorize your items of expenditures and then allocate money to each category. Make sure that you don’t spend beyond the amount allocated to each category. This will indeed be helpful to keep a lid on your spending behavior. Your budget should be such that you are able to contribute some money to the emergency fund. The emergency fund can be utilized to meet unintended expenses.
(3) Be well aware of your liabilities
When you have fallen into debts, you have to be well aware of how much you owe to others. You should be well-acquainted with the monthly payments that you have to make, your interest payments as well as the outstanding balances. Don't default in making payments. Only regular payments on your debts can make you debt free.
(4) Close credit card accounts
It is not a wise financial behavior to keep many credit cards. And, if you already have many credit cards, it would be wise to close as many credit card accounts as possible. The underlying rationale to keep less number of credit cards is to curb the temptation to abruptly spend money using cards.
(5) Make more than minimum payments
Make efforts to pay more than your monthly payments. Use the additional amount of money to pay off your lowest outstanding debts. This helps you pay off your lowest outstanding debts even before the scheduled time period. And, once you have successfully paid off your lowest outstanding debts, switch your target to the next lowest outstanding debts. Persist with this process. This helps you clear off your entire debts in a relatively shorter period of time.
(6) Seek professional help
Sometimes, it is a good ploy to seek professional help to repay your debts. A debt relief company can negotiate a pay off strategy for you after working with your creditors.
These are indeed smart tips that you can start following from today only. Seriously following these tips, will keep you in good financial condition.
This is a guest post by Nancy.
Sabtu, 11 Juni 2011
Open for Guest Posts and Guidelines
I have been receiving many guest post requests in the past and recently getting even more guest post requests in the past few months. I truly appreciate for those of you who interested to write a guest post in my blog. At least this tells that my blog is worth for you to write. Thank you so much! Having said so, I would also like to apologize to you that until today I have NOT even done a single guest post. Sorry, guys!
I usually do not able to get back to you in a timely manner due to busyness of my schedule. I know this is an excuse. So this is my fault then, please forgive me. But I will still definitely get back to you later on with some delays and I usually throw you ton of questions. First, probably I”m new in this guest posting stuff so I have a lot of questions to ask. Second, I want to make sure that whatever you write will be useful to the readers of this blog. Third, I also want to make sure I don’t want to waste your time to write an article that eventually I do not post it here. At the end of the day, I usually do not get any respond from you after that. I guess I have make you pissed off already? Again, sorry if this is the case…
In order to reduce my questions to you, I thought it will be easier for me to come out the guidelines for guest posting in this blog:
[Updated: Feb 7, 2012]: Added perquisite guideline to raise the bar slightly higher to encourage the guest post author to be more interactive and also to encourage the blog commenters to do a guest post.
[Updated: May 27, 2012]: Added content guideline that the link must be related to personal finance website.. I want ultimately the provided link is the useful one. Sorry for any inconvenient cause.
[Updated: April 29, 2013]: Updated for no link is allowed requirement. Yeah I know, this will turn away you. :)
Prerequisite Guideline
Content Guidelines
Submission Guidelines
I usually do not able to get back to you in a timely manner due to busyness of my schedule. I know this is an excuse. So this is my fault then, please forgive me. But I will still definitely get back to you later on with some delays and I usually throw you ton of questions. First, probably I”m new in this guest posting stuff so I have a lot of questions to ask. Second, I want to make sure that whatever you write will be useful to the readers of this blog. Third, I also want to make sure I don’t want to waste your time to write an article that eventually I do not post it here. At the end of the day, I usually do not get any respond from you after that. I guess I have make you pissed off already? Again, sorry if this is the case…
In order to reduce my questions to you, I thought it will be easier for me to come out the guidelines for guest posting in this blog:
[Updated: Feb 7, 2012]: Added perquisite guideline to raise the bar slightly higher to encourage the guest post author to be more interactive and also to encourage the blog commenters to do a guest post.
[Updated: May 27, 2012]: Added content guideline that the link must be related to personal finance website.. I want ultimately the provided link is the useful one. Sorry for any inconvenient cause.
[Updated: April 29, 2013]: Updated for no link is allowed requirement. Yeah I know, this will turn away you. :)
Prerequisite Guideline
- You had posted at least 5 relevant comments in this blog.
Content Guidelines
- Anyone can do guest post (e.g. readers of this blog, other bloggers and etc.)
- The post cannot be for advertising purpose and must be relevant to personal finance. The post should be focusing on providing useful personal finance tips to the readers.
- Your post must be original and has never been be published anywhere else which including your own blogs or other places.
- Your post does not need to be agree with my line of thinking. I love and enjoy to accept different points of view.
- No link is allowed unless I know who you are (e.g. frequent readers of this blog).
- Your guest post is preferable written in simple HTML format. If you would want to submit in DOC format, it is also fine but please avoid fancy stuff. :)
- If you have picture, please include your picture in your guest post submission and mark it clearly where the picture or image should be displayed in the content.
Submission Guidelines
- If you’re okay with all these guidelines above and still interested to do a guest post in my blog, please send your guest post to me at champdog@gmail.com.
- I will try to reply within 48 hours and tell you whether I will accept the guest post or not. I may have questions or requests to the guest post and once we get the consensus, I will post that up as soon as I can. If I reject your post (I hope I won’t), you’re obviously free to use it anywhere as you like.
- Once I posted your article, I will drop an email to you for you to review.
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