Finance Care Guide – Page 9 – Personal finance blog

February 27, 2017

Vital Information High Income Earners Need To know At The Time Of Insurance

Working at a job, no matter how big or small, is the sole income of many individuals and the means of survival for them and their family, yet this does not mean that those people who earn from various sources and are doing significantly better than others in terms of financial gains do not need protection. Money is the most unreliable thing in the world and it can come and vanish in the blink of an eye. In view of that, it is better to be safe than sorry when it comes to protecting your life’s earnings and income.

What Is Income Protection Anyway?

Income protection is a kind of insurance provided by companies like freedom insurance group that ensures that a family or a person continues to receive income just like they did before, even if they are unable to work anymore. The reason behind the lack of ability to work any longer can be anything including an accident, disability, health issues etc. Any event that renders the earner incapable of working and earning anymore makes him eligible for receiving the monthly income when the person in question has applied for and has paid his insurance responsibly in the past.

Tips To Remember When Applying For The Income Protection Insurance:

Don’t Rely Heavily On Your Assets:
Many people who have possessions and valuables in their name rely heavily on their assets and believe that these assists will come handy in case they are unable to work and earn any longer. While their trust is not misplaced, the way they think it works is misguiding. It takes considerable time and manpower to find buyers, bargain on price, to move the items and receive cash and sadly, when one becomes incapable of earning any longer, money is needed even more and promptly, to make new changes. After applying for income protection insurance, one begins to receive monthly payment promptly and swiftly without much hassle.
Look through The Benefits Before Applying:
Before you begin to apply for income protection coverage, make sure you first discover your benefits extensively. There are many employers who offer extensive sick leaves. In case your sickness is of severe nature and has completely rendered you useless to work anymore, then you should also check out other group protection insurance plans that might have been offered by the employers. Once you are positive that there are no other options left, then you may apply for the income protection insurance that will cater to you accordingly as per your needs.
Consider the Structure of your Policy Carefully:
Some people find the premium rates high, but what they don’t know is that they can reduce it by lengthening the waiting period. The waiting period is the time you want your insurance to start paying in case you suffer through an accident or illness. If you have sufficient savings and you can afford to make the claims later, then your premium will be reduced. There are various other options like that which will let you structure your policy as per your convenience.
There are many insurance providers in every city of Australia, but you should only go to a reputable insurance group for your policy and read the instructions and structure flexibility carefully, even if it takes time. Your careful decision now can protect you later in life.

February 23, 2017

First Time Buying Real Estate at Auction: What You Need To Know

Whenever you are availing services of any kind, it always helps to do a little homework and be prepared yourself too. So many people make the mistake of not doing their research on a service provider and/or their people but hiring them anyway. They end up having to pay for their hasty and somewhat uninformed decision, later.
There are a lot of people who attend real estate auctions on the regular. Such people might know the ropes of how it is all done because of their repeated exposure to such events.
However, if you have never bought any real estate property at an auction before, it only makes sense to obtain a little insight into what to expect.

For starters, buying real estate at an auction can help you to save major bucks. Not only do they save you tons of money, but they also save you a lot of time as well. It is the competitive bidding process which makes most buyers a little nervous.
While the questions that you have of your own that you wish to ask the real estate auctioneer are important, let us talk you through to what really happens at a real estate auction to make the process seem less intimidating for you.

1: Be Prepared:

Just like to ace an exam you have to be prepared for it, similarly for you to be at your most confident during a real estate auction you have to be prepared for it. This includes reading the auction guide thoroughly. This is the place where you will find the most amount of accurate information about the real estate property that is going to be auctioned.

2: Visit/Inspect the Property:

You as a potential buyer should see to it that you inspect the property that is going to be auctioned. We strongly suggest that you visit the property in person to see any issues, features, potential maintenance issues that the property may be having to itself which could make you think twice about it. And if there are going to be any second doubts regarding the property you might as well know them before you actually go ahead and bid for it.

3: Real Estate Registration Companies:

You will also need to register yourself for a real estate auction. It is a simple registration process where you will just have to provide some basic information about yourself.

4: The Bidding Process:

When you sign in at the auction site you will be provided with a bidder’s package which has all the information regarding bidding and even the bidding card. Once all the bidders have gathered the auctioneer is introduced and the bidding process starts where every time someone bids a price, the auctioneer states a higher price and waits for another bidder to raise their card until the final, highest price is reached.

5: The Winner:

The last person to bid the highest price wins.
The auctioned property has now been sold. A real estate agent then gets in touch with that person and gets the required paperwork done.

February 15, 2017

Why You May Be Refused a Consolidation Loan

Being in debt can be a worrying time, but there is plenty of information available on the internet which will show you that you are not alone. The LazyManandMoney.Com website has lots of useful information about finance, and how to keep your head above water. If you are considering consolidating your debts, then here are the top five reasons that your loan request might be refused.

Too Much Debt

One of the biggest reasons that people are refused a consolidation loan is that they have too much debt. They have gotten themselves into a situation where they have stretched their finances too far. A good rule of thumb is that if your monthly payments exceed 40% of your incomings, then it is deemed as too much of a risk to offer a further loan. A debt consolidation company will have all of the criteria that they use for making a decision clearly displayed on their website. As such, it is worth your time to shop around and check out each company in turn and see what their requirements are for you to be eligible.

No Collateral

Another factor which could prevent you from getting a consolidation loan is that you have no collateral at all. You may be able to get a guarantor for your loan which some companies may accept, often the levels of interest that these companies charge will be higher. If you do not own your home or car or have anything else of value, you may struggle in getting a loan.

Not Earning Enough Money

You may also find that your level of income can have a big effect on whether you will be eligible for a loan or not. If you do not earn enough money when compared to the amount you need to lend, then the banks or financial institutes may end up refusing your application.

A Bad Credit Score

If your circumstances are particularly dire, then your credit score may be so small that the majority of credit companies will refuse your loan application. You may still be able to get a loan, but you will find that as you are a high risk, the charges and interest that the company will charge will reflect this, meaning that you will have to pay more.

Not Enough Credit History

You may think that if you have not used any credit before then, this will work in your favour, but you would be mistaken. Just as with having a bad credit score, having no history can also ring alarm bells with financial companies, so they may refuse your loan as they cannot see enough of your credit history.
If you think that you may be eligible for a consolidation loan, make sure that you speak to as many different companies as possible. Shopping around will help you to get the best deal available and start your way on the road to financial recovery. Getting into debt is not the end of the world, and many people have been there before you. Make the changes to your life to get you out of debt as quickly as you can, and then start planning for a better financial future.

February 15, 2017

Simple Ways To Develop Confidence In Trading

We all have confidence tucked away in us somewhere; we may use it for our day job, weekend sports or odd jobs around the house. So how can we develop confidence in trading?
I hear traders say to me all the time “ I’ll get confidence when I start making some profits” and every time I hear this I kindly let the trader know, you need confidence before you start making profits.
Can we start off by asking ourselves “are we naturally a confident person”? If not that’s OK, we can then ask ourselves what are we confident at doing in our day to day life, and how did we get to the stage of being confident in that aspect of our lives.
The oxford dictionary states confidence as “the feeling or belief that one can have faith in or rely on someone or something”

So we can break that down into trader language quite simply, “ do you trust your trading plan/system”
So let’s take a look at some key steps in gaining some confidence in your trading.

Have you backtested your trades you are taking? We backtest our trades to gain some knowledge in the setup, and look for patterns we can use to our advantage in the future, this will also give us insight to why our trades fail. Backtesting your trades is by far the most boring part of trading and is overlooked by so many for this reason. No one wants to number crunch, but by doing this you will gain confidence in the trades you take. (pending the success rate of your trade of course)

Say you backtest your trade setup over the last two years, you winning strike rate is sitting at 70% (7 out of 10 times you have a winner) next time the trade setups, you know your trade winning strike rate over the last 2 years all you have to do is push the button. You will have confidence in doing this. Or you can sign up to a service that has proven FTSE signals. Make sure their results are published and verified.

If you’re naturally a confident person, you need to know how to handle a loss.

Most confident people I know hate losing, and unfortunately, in trading, we will lose.

Losing can wreak havoc on our confidence, we need be able to handle a loss, simply putting it behind us and moving onto the next trade.

How will you handle a string of 4 -5 losses in a row, will you have the confidence in pushing the buy or sell button the next time your trade comes up? Your confidence will come from your backtesting as mentioned above, knowing that over the last 2 years of backtesting you found on 5 separate occasions your system experience a string of 5 losses in a row.

My mindset before entering a trade is that there is a possibility that this trade will fail, I guess I’m trying to condition my mind for the potential loss, that way when it happens I don’t feel so bad. Another good way of handling a loss is to leave the computer straight away, go for a walk, throw the ball to the dog, take your mind off it before it turns into multiple losses.

“The Market is always right”

Working on you. Setting trading goals and completing them will give you some confidence in your approach to trading. Little goals like, I will only trade setups that I have backtested.

Stopping trading for the week after you have made 3%, following your trading plan, not breaking any trading rules. If you can complete goals similar to these, and you have backtested your strategy, there is no reason why you cannot gain confidence in your trading.

One last point, develop these steps into your trading and keep a journal of every time you place a trade, every time you exit a trade early (before you were supposed to) and every time you take a loss, write down how your feeling, are you tired, did you get woken up by your platform alarm, were the kids crying in the backroom. This will also help you in your quest of “why weren’t you confident”. And will also give you guides of what you need to improve on.

February 7, 2017

Choosing a Credit Card as a Business Owner

Thinking about getting a credit card as a small business owner? You may have read a review of business credit promotional cards, but perhaps you are still unsure about how to go about choosing a card. There is a wide range of factors that business owners need to take into account before they sign on. There are things like determining the importance of cash back offers, or deciding how important annual percentage rates are for you and your company. Read on for some extra help in choosing your card.

How are These Cards Different?

So what is the deal with these types of cards? A review of business credit promotional cards will reveal that these kinds of cards will appeal to entrepreneurs and small business owners in a variety of ways. For example, a card may provide cash back offers that can be applied to company purchases. Another card may waive service fees if you are purchasing technology or other specified equipment. The details will vary between card providers, which is why it’s a smart idea to read about the different offerings for each card.

What are the Necessities?

Yet before you pay attention to the more exciting parts, you need to take a look at the necessary components to a suitable card. A review of business credit promotional cards will include analyzing the APR and monthly interest rates. Is there a fee for overdrafts or over limits? What about card activation and the set number of transactions that need to be made each month? These are important factors to consider before you sign on to be a cardholder. If you are more interested in amassing cash back points, then you should look for a card company that offers that. If you want to know more about the fees that are included in the card’s APR, then a financial adviser may help you with that.

Choosing a Card that Suits You

Before you completely sign on to a new business credit card, be sure that the card includes features that appeal to your lifestyle and spending habits. For instance, some cards will offer discounts on travel deals and other global adventures. Other companies extend special cash back offers to their cardholders, or only to those who are small business owners. You really do need to sit down and check the fine print to see if there is a card that is well-suited to you and your plans.

February 3, 2017

How to Get the Most From Your Auto Insurance

Auto insurance is a requirement in almost all states. Being that you likely have no choice about whether to buy it or not, you should at least try to get the most from your insurance as possible. Typically, each state will have a minimum requirement, but if you get into an accident, that minimal coverage won’t do a lot to help you. Your best bet is to put together a policy that will offer you what you need if you would get into a major car accident at a price you can afford.

Here are some tips to help you get the best coverage at the most affordable price.

Deductible

One thing you generally can control when it comes to costs is the deductible. This is the amount of money you have to pay out of pocket before your insurance company will pay for any claim. Many people automatically choose the lowest deductible. However, if you want to save money, then you should go with a higher deductible. To ensure that you can afford to pay it should an accident occur, you can simply put money into a savings account to cover it. Keep the money there and don’t touch it. Then, you know that you can afford the deductible should you need it.

Car Choice

If you have a vehicle that you don’t own, such as a lease or one you have a loan for, then you will likely need comprehensive and collision coverage, which will make your insurance rates higher. While you may not be able to buy a vehicle outright, you can make more careful choices in what vehicle you do buy. For example, lower cost vehicles will have lower cost insurance. Vehicles that are more likely to be stolen will also increase insurance prices. Lastly, brand new vehicles and those with low safety ratings are more expensive to insure. Basically, the reason these things affect your insurance rates is that your vehicle would be more expense to repair or replace, costing the insurance company more money.

Driving Record

Your driving record will play into the cost of your car insurance. So, be smart when you are on the road. While accidents will have a huge impact, just getting a speeding ticket can also raise your rates. Drive carefully and obey all road rules. If you get into a minor accident with no injuries and no damage, you should avoid reporting it if the other driver isn’t either. Any reports of accidents could affect your rates, even if they are not your fault.

Bundling

If you have other types of insurance, ask about bundling them with your car insurance. When you bundle insurance policies together, you generally can get a discount. You may have to ask about bundle options, though, when you check at carinsurancecheap.net. Keep in mind that you will need to have all your insurance coverage through one company and some companies may not offer all types of insurance. In addition, you should be careful about switching a policy, you could end up paying more than you are saving.

Anti-Theft

You can also help to bring your costs down by installing anti-theft devices. Things like GPS tracking devices, car alarms, and ignition shut-off devices can all give you a chance at a discount on your policy. This can save you quite a bit of money because it reduces the chances that your vehicle will get broken into or stolen, which saves the insurance company money.

Driving Courses

In some cases, taking a driving course can be a great way to lower your insurance expenses. If you never took driver’s education, that could be an option. Another option would be a defensive driving course. Taking such courses gives you training in how to avoid accidents and how to be a better overall driver, which, in the eyes of the insurance company, makes you a lower risk driver.
Making the most out of your insurance policy means getting the most for your money. There is no need to go with the bare minimum coverage. If you make the right choices, you can put together a policy that offers great coverage at an affordable cost. Keep in mind that you can’t control everything that affects your costs, but by managing those things you can control, you can get a great rate.

February 1, 2017

How to Choose Between SIPP and Stakeholder Pension Plans

Pensions are becoming an ever more important topic, even among people at the start of their working lives. With fears that some of us are not putting enough money aside for future retirement, it would seem the best option is to invest for as long as you can, and to make sure that this investment is the best plan for you.
However, the world of pensions can seem a little murky to the uninitiated, and with the huge amount of claims related to people who feel they have been sold the wrong type of pension for them by financial advisors, it’s a good idea to know the key differences before you start discussing your options.

Before deciding on a specific plan, you need to establish whether you want a Self-Invested Personal Pension (SIPP), or a stakeholder pension.

Who is a Stakeholder Pension Right For?

Stakeholder pensions are aimed at people with lower incomes and people with unpredictable earnings or working patterns (for example people who want to take periods of time off work for things like studying, travelling or having children) or who may not want to commit to investing a high amount every month.
There is a cap on how much you can invest of £40,000 per year (this reduces to only £3,600 if you don’t pay tax), but you can start with as little as £20 per month and won’t be penalised for breaks in contributions. Stakeholder pensions have low charges, and can be relatively simple to manage, also making them a good option for people who just want to pay into their fund.

Who is a SIPP Suitable For?

SIPPs are more flexible schemes where you actively manage where your money is invested. Also, you can get a wide range of options to choose from that includes shares, commodities and more. They tend to be favoured by high-income earners, however there are now plenty of low cost SIPPs which are designed to appeal to mid-range earners that want flexibility and are interested in managing their own fund.

Not Sure Where to Head?

If you still aren’t sure which plan is right for you, it could be worth speaking to a financial expert like Bestinvest,to assist you in your decision making. For instance, if you are a high earner but don’t want to manage your own portfolio, or you’re a middle-income person who is undecided, such firms can provide the help you need.
Remember though, whether you seek external support or sort this yourself, it’s important you research your options thoroughly before you make a choice.

January 26, 2017

Making the Most Out of Your Family Vehicle

The family vehicle is both a functional and sentimental item for the household. It takes the family to work, school and extracurricular activities. With new vehicles costing $20,000 or more, it’s critical to take good care of your car for as long as possible. Take a look at how you can make the most out of your family vehicle. Driving it to 200,000 miles might be possible in this modern age.

Prioritize Maintenance

Many new cars have a maintenance schedule that differs from the standard, 3,000-mile oil change suggestion. Drive cars 5,000 or 10,000 miles before an oil change is necessary, for example. Always follow the suggested maintenance schedule for your make and model. Common repairs that arise over time include:

Tire rotation
Oil changes
Brake adjustments

When you prioritize minor repairs, major problems don’t have a chance to build up. Keep the maintenance schedule close to your calendar so that it’s always on your mind.

Pay the Balance Off

For most families, financing a vehicle is the only way to outright own one. These contracts last for three to five years, but they can be paid off earlier. To make the most out of the family vehicle, pay off the balance as soon as possible. You’ll save hundreds of dollars in interest costs as well as insurance premiums. Put that money into a savings account for maintenance instead.

Clean it Up

Making the most out of the vehicle means being mentally happy with the car. Be sure to clean the car on a regular basis. Concentrate on the exterior with washing and waxing chores. You’ll reduce the appearance of rust with these habits. The interior requires dusting, wiping and vacuuming too. Removing grime and stains from the interior will keep the car looking newer over time, which contributes to your happiness with the vehicle as it reaches the 10-year mark and beyond.

Use it as Collateral

With a car completely paid off, you can use it for a title loan. Families will need some emergency cash at some point, and these loans give you a chance to borrow funds. The vehicle becomes collateral while you pay off other commitments. As long as you pay back the money within the specified time, your vehicle is still yours to keep. This perk of car ownership is definitely a great way to get the most out of its value.

Keep it Filled

You’ll get the most out of your vehicle when it’s filled up with loved ones, proper fluids and air. If you own a large vehicle, fill it up with friends and family so that the gas mileage is worth the trip. Fill the oil, transmission and radiator with the proper fluids. Replace the fluids on a regular basis too. Don’t forget the tires need the right air pressure because safe driving and peak gasoline efficiency are coveted by any family.

Reduce the Miles

Get the most out of your car by reserving it for everyday travel. If you have a road trip coming up, rent a car as an alternative. Build up the miles on this car instead of your own. As a result, you’ll see the family vehicle lasting for many more years without the additional mileage.
Although you may treat your car with the best care imaginable, every machine will eventually reach their final days. If a major repair costs more than the vehicle’s value, it’s time to think about a new- or used-car purchase. Continue to practice solid, car-care skills with the next vehicle so that it can last another 200,000 miles.

January 23, 2017

How to Teach your Children about Money

Teaching our children about money is not something we should leave up to the schools. Although some financial content is covered in classes, many children leave school with a lack of understanding about mortgages, credit ratings and personal debt.

One major problem with this is that by not understanding debt, younger generations quickly accumulate credit which they spend recklessly, and then cannot repay. This would leave many people with a difficult financial future, unable to gain a mortgage and finding it difficult to live day-to-day in a financially viable way.

So, where do we parents start? Make sure that what you are discussing is age-appropriate. This great site talks through some topics to consider at each age group.

For example, from the age of 8, you could start to discuss how you earn money and what a salary is. Then you could discuss how this goes to contribute to monthly expenses like the food bill or the electricity bill. The more you familiarise them with the terminologies of finances, the more accessible it will be to them.

Here are just a few items to consider chatting with to your older children in an informative, but casual and honest way:

Debt: Wonga South Africa, a ‘same day’ cash loan provider, recently released this blog post about why you need to understand debt. You need to discuss with your children about good and bad debt, according to their blog. It’s OK to get help with finances by applying for credit when you need it – but make sure that the debt you are accumulating is considered to be ‘good.’ So for instance, obtaining a car through credit might be considered good debt as it allows you to get to work which earns you money. Spending out on a holiday might be considered bad debt as this is not really something you need. Wonga suggests you ask 3 questions – do you need it? Can you afford it? And, how much will it cost you overall?

Savings: Many people fail to save effectively and so it is important to teach your kids about saving from an early age. Perhaps you could suggest saving ¼ of their pocket money each month to start with. Many banks allow you to set up a children’s savings account and this can also help to encourage them to hold back money early on.

Salaries – of course you’ll want your children to earn well in their future, and so it is important to encourage them to do the best they can and earn a regular income. Education will help them achieve the job that they want – so ensure they know the importance of heading off to school now and studying hard, as everything impacts their future. It can be difficult for children to see the bigger picture. They are, after all, just children and need to enjoy their innocence. However, there is no problem in explaining about the importance of school and getting a job periodically to remind them of this.

January 18, 2017

What Is a Limited Liability Company Tax ID?

When it comes to setting up and running your very own business, there are a number of different things to account for and decisions to make. Deciding what kind of entity, you would like to use for your business, for example, can be a confusing prospect. A limited liability company (LLC) is a popular choice that seems to work well for a number of indivduals. Just make sure that you remember that you must complete an IRS tax ID application and obtain your employer identification number (EIN) regardless of the entity you choose!

What is an EIN number?

When you fill out important forms or need to prove your identity, you will oftentimes be asked to provide your social security number (SSN). This number is unique to you, and is kind of like your fingerprint. Without it, you will find yourself hindered in your ability to fill out a number of documents, including those that help you open up things like a bank account. An EIN number, then, works much the same way for your business. You must provide your EIN number when filing taxes or opening up a business bank account.

How can I obtain an EIN?

To obtain an EIN for your LLC, you must first complete an IRS tax ID application. You can do this online, and it won’t take you long at all! You can even check EIN status throughout the process to ensure that your application is being processed. If everything continues as planned and the application is submitted accurately, you could have your EIN number in as few as one or two business days!
Are you looking for a website to help streamline the process of completing an IRS tax ID application? IRS-EIN is just the business for you! They can help you successfully file your application and obtain your EIN.