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Personal Finance

Payroll Loans

Payday payroll loans are typically used when there is not enough cash in the bank to cover money needs until the next paycheck comes around. If households have less debt, it would make sense that the need for fast cash would dwindle as well. There are important factors concerning this assumption. Mainly speaking, the household would have to a financial plan in place, proper budgeting skills as well as control on spending power in order for it to ring true.

Budgeting Skills – When debt numbers decrease, it doesn’t mean that money management can disappear. A budget is still as important in order to keep track of income. It is easy to slide away from accountability of the budget is not continually used for all levels of debt. Be accountable to continue paying off debt rather than upping spending power. A savings account is a great place to help store any excess cash to be used at a later date as needed.

Financial Plan – A budget runs much smoother when there is a plan to follow. Are you focusing on one particular high interest debt at a time in order to pay it off as fast as possible? Are you looking to buy a home or car and are working on increasing your credit potential to earn a low interest loan which will save you lots over the years of on-time payments? Maybe you are looking at increasing the amount in your savings and seeking an opportunity to create a retirement fund as well as maintain an emergency fund. The emergency savings would play a big role in whether or not a payroll cash advance loan will be used or not. Credit cards are often used, but if your finances have not recovered enough the alternative money options may still be the only access to extra cash during an emergency. Use your budget as a tool to monitor progress on any short or long term financial goals.

Spending Power – When there is excess money somewhere within the budget it takes lots of control to not spend it. The urge to get the latest in electronics, fashion or a night out on the town may prove difficult to control. What we think we deserve and what we can afford to treat ourselves with do not always match. Individuals may not even have extra cash, but face the itch of having available credit now that their debt has been lowered. It serves no good purpose to use this credit unless it is to alleviate an emergency cost. If there is no savings, a credit card is a good option as long as the interest is lower. Some credit cards have interest higher than short-term loans. Watch what you spend and have a plan to pay it back in order to keep the most income in your own pocket.

Create a Cash Cushion

As for me, I was on this Level for a long, long time – probably a decade. I always thought there was a better place to put my money “to work.” Your money should be working for you, right? Every three or four months, I would amass a good chunk of my goal. I would see that money in my savings account and say, “I need to invest this money and get a return. It’s just sitting there.” And, I would try and skip this Level. There were years, I thought I was playing at Level VII, but really I was still playing Level III.

In the beginning, I would take that money and put it in some risky stock speculation. I wouldn’t even call it investing because I was watching the stock prices daily and making trading decisions on a daily basis. That is not investing. I would invariably end up losing 20% – 40% and sell the “investment.” Then I’d be down and put the cash back into my savings account. After another three or four months, when I saved up another good chunk of my goal, well, you know what happened next.

So, did I learn my lesson after the first few times? No. Did I learn in the first couple of years? No. Did I learn the importance of having cash set aside for emergencies? No. I’m stubborn. I’m “smart.” I can beat the “system.” And so I continued like that for years.

Another version of this lesson for me was why having extra cash around is so important. There are so many emergencies that can happen that require extra cash. If you don’t have the money sitting in a savings account, then you have to sell something to raise cash. Typically, you’re selling at a very inopportune time. Maybe taxes come up and you owe more than you think. If you don’t have cash, then you have to sell something. What if the economy is going through a recession? Typically the time you lose your job is the same time that the stock market is down 20% or more. That really hurts when you have to sell at a loss to raise cash. It’s almost having a process of “buying high and selling low” in your financial investments “system.” That is not going to increase your net worth over time. That is going to lose you money.

Let me tell you another reason why Level III is so important. Later in the game, we’re going to be investing in real estate and businesses that generate cash flow, but are not considered liquid. That means you can’t sell them easily. It’s going to take time to sell these non-liquid assets. It’s going to be more like selling a house than selling a stock on the stock exchange. These non-liquid assets are where a lot of the power is because of their ability to produce cash flow. We’ll be looking to buy them with the potential of never selling them. We won’t be looking for capital appreciation. We’ll be looking for cash flow. So, if you don’t have the proper reserves in place, and if you haven’t learned this lesson yet, you’re going to get yourself into a lot of trouble. Entire dynasties have been brought down because they didn’t have enough cash in the bank. An opportunity is only an opportunity if you can take advantage of it. Otherwise, it’s just a good idea. For you to be able to take advantage of an opportunity, you’re going to need cash. For you to be able to protect some of your other investments, you’re going to need cash.

It took me over a decade to learn this invaluable lesson. Save, at a minimum, three months of expenses in savings account for emergencies. Your emergency fund is the buffer in your system, the redundancy, that allows all the other systems in your financial structure to work well. It’s the grease, not the gas – but, both are needed in a well-running car to get you where you need to go.

Advantages Of Personal Life Cover

  • Tax Breaks: Most life insurance polices include a tax-free allowance that can be paid in each year. The payout, whether it is in a lump sum or instalments, is tax-free. This is also dependent on the total value of the estate, because it could be counted in the Inland Revenues’ calculations for inheritance tax. However if it is written into trust this can be avoided because it makes the pay out completely separate from the rest of the estate. Not all life insurance policies can be written in to trust, so it is advisable to check this before purchase.
  • Peace Of Mind: This is often considered the biggest benefit of having this type of policy in place. You will be reassured that your funeral costs will be covered and your family will not be left with unpaid debts such as loans or credit card bills and the mortgage or rent.
  • Added Extras: You will have the option to add critical illness and income protection cover to your policy if they are not already included on the life policy. This can provide essential protection should you be diagnosed with a long-term debilitating or terminal illness.
  • Regulations: All providers must adhere to guidelines that have been set up by the Financial Conduct Authority and the Prudential Regulation Authority. Each company must have a clear and accessible complaints procedure in place. They will also need to deal with complaints in a timely manner as they are also required to report complaints to the regulatory bodies.
  • You will be able to specify beneficiaries even if you have not created a will. |You can have one or multiple recipients. If the principle beneficiary has already died then the money will be split between those remaining or, if named, a secondary recipient.
  • Most insurance companies provide an online calculator. This is to make it easier for you to figure out exactly how much money you would need to be paid on the claim to provide for your individual circumstances, ensuring your peace of mind and that the safety net in place is strong enough.

About Managing Personal Financial Crises

First, only use credit when it is absolutely necessary. Never use credit for consumables such as groceries, utilities, etc. The one exception might be gasoline, if you discipline yourself to pay the card off in full each month. Did you know that if you pay your credit card by the due date you might be able to avoid interest charges for charges made during the billing cycle?

Second, the moment that “bonus” money (windfall, unexpected) comes in, apply it to the debt first! This is very important. Windfall money must not be spent frivolously, ignoring your debt. Don’t respond like a child. Respond as a responsible adult, making the right decisions rather than according to how you feel.

Third, STICK TO THE BUDGET. And, BELIEVE in tomorrow. You can believe in tomorrow when you manage your money. But, if you treat your money according to your feelings and luck, don’t be too surprised when tomorrow is a lot harder than you expected.

Do you want to be debt free?

  • Plan your finances or become a prisoner of debt.
  • Don’t spend more than you have.
  • Respect yourself and your family and your future.
  • You can either become an expert at managing your money, or an expert at getting into debt. How do you become a debt expert? By not planning and not managing your money.
  • Part of growing up is taking responsibility for your finances including: showing up for work every day and doing better than you have to; planning what you will do with your paycheck, and sticking to the plan; paying yourself from every paycheck: put money in your savings account.

You can be debt free if you plan to be.

Basic Financial Planning

  1. Know your financial needs, priorities, goals, etc: What do you wish to achieve in your life, from a financial perspective? Is there a realistic way, to do so, by using personal discipline, and a focused approach/ plan? Will you begin financial planning, for your present, and future needs? What will you do, to plan, for your children’s educational costs? How about your retirement? Many give up, because they feel, they do not have the ability to achieve these objectives, but, most people do, if they plan, far enough ahead, and discipline themselves, consistently. After all, you pay many bills, every month, including your mortgage/ rent, utilities, and other current needs, so wouldn’t it make sense, to proceed, with the discipline and attitude, to pay yourself, first?
  2. Periodic payments/ installments; dollar – cost averaging: For the average person, the best way, to attain and maintain, a significant, diversified portfolio, is to use, what is referred to, as, a periodic payment plan. This means, every month, preferably on a specific date (same time each month), putting the same amount into a mutual fund. This should be, a diversified, balanced fund, in order to perform, in a variety of market conditions, etc. Dollar – cost averaging means, since, the price of the fund, generally fluctuates, you will purchase a different number of shares, for the same dollars, but, hopefully, over – time, this approach will be extremely beneficial, and grow.
  3. Discipline: This type of approach, will only work, successfully, when you proceed, with a self – imposed, discipline, to pay this bill, to yourself, every single month. In the longer – term, you will benefit, because, you will, without feeling much pain, build up a significant portfolio. Wise people realize, your success, is up – to – you!

Get Rich These Days With Talent

building your career

There are jobs which pay very well (i. e. manager positions), with which it is not difficult to build a fortune. With conscientious career building, very much dedication and with some luck it can be achieved.

The question is how great is the sacrifice we have to bring, and whether the high salary compensates it.

becoming a criminal

There are many immoral or criminal ways of making money. I don’t want to give tips to anybody, the media give us information about such cases in many ways all the time.

I wouldn’t urge anybody to choose this way. In this case, we risk not only money but stricter penalties, too (i.e.prison).

with talent

Many people get their wealth by being good at something, eg.: sportsmen, musicians, writers, artists. Others invent something new, it is enough to think of the internet millionaires being born by the dozens these days.

Most of those who have such a career behind them, say that the way leading to success is not a smooth one but loaded with hindrances, and it is not as simple as it looks like. Nevertheless, I wouldn’t reject this option.

with luck

We can be lucky many ways in our lives: we can win the lottery, we can inherit suddenly, or, we can find some art treasure in the attic.

A very insidious danger lies in the way of those who became rich thanks to luck.

Many of them are not used to handling great wealth, so the money leaks from their hands. When the money is over, they can even have a great number of debts, and finally, they can find themselves in a worse situation.

If you get wealthy unexpectedly, it is highly recommended to ask for advice from a financial expert.

Productivity and Efficiency

The success and failure of a business entity depend highly on how it performs in the market, which is based on three important factors, i.e. productivity, utilization, and efficiency. So try to increase your productivity.

Certificate Of Deposit Accounts

Certificate of deposit accounts are special accounts offered by banks & brokers, they’re basically the reverse of a regular loan: the investor loans their money to the bank for a specific period of time during which the bank pays you interest for the use of the funds.Traditionally interest is generally paid periodically based on a percentage, or other predetermined factor (such as the stock market), for the life of the CD.

Many institutions offer fixed interest rates but variable interest rates are also available. This type of account differs from bank savings accounts in that depositors can not withdraw the money at any time; they have to wait for the them to mature or pay a severe penalty.

Certificate of Deposits are perceived as safe because they are insured via the FDIC. The FDIC is federal insurance coverage provided by the government, instituted during the Great Depression, it was meant to provide consumers reassurance & protect against bank runs.However, there is a cap on the volume of funds insured by the FDIC per account.

Since the FDIC is backed by the United States Treasury, many people look at CDs as the ultimate risk-free” investment. As such, rates of return tend to be very low, but are still a bit above savings account rates to compensate people today for their income being tied up with the bank. Normally certificates provided by smaller banks, who have great monetary needs, will offer a greater interest rate than large banks flush with cash. Because of this consumers can typically find much far better return rates for their investment at smaller banks.

The reality is that there is no such thing as an investment that carries no risk. There are dangers associated with CD accounts that many shoppers do not take into account.

The first danger is the inflation threat. Lets imagine you tie up your savings in a 5 year CD with a 2% rate of interest, but, during those five years, inflation spikes to 5%. Because of the high penalty for accessing your money before the term ends, your money is inaccessible and is essentially dwindling away and losing value. On the other hand, for those who had access to their money via a standard savings account, you could simply withdraw the cash and invest in something tangible, like assets or land, prior to it becoming worthless.

One more commonly overlooked threat, which can be closely related to inflation, would be the rate of interest threat. If an investor deposits funds a 5 year CD with a 2% rate of return,and the base rate of interest spikes to 4% in the following days or weeks, then there is an opportunity cost to holding the money. An individual with a common savings account around the other hand, will see their rate of interest adjusted as the rates spike. Of course in a savings account the rate of interest is usually lower to begin with.

Inflation and fluctuating interest rates are risks that increase with the term of your investment. The longer the time before to maturity, the much more considerable the chance of interest and inflation changes.Short term CDs, on the other hand have incredibly low threat simply because there might be less opportunity costs more than the shorter time. Because of this, many investors choose options with shorter terms, or options that allow them some control in case of inflation of interest spikes.

Ways You Can Detect a Financial Fraud

  • Read your monthly bank statements. Know every purchase and credit to your accounts. Scammers can steal your information and set up charges you might mistake. Check for hidden “membership” fees or any other unapproved charges.
  • Give to recognized charities. When a disaster occurs, your instinct is to give to those who lost their homes, clothes, etc. Do your research and give to a recognizable charity or a credibly ranked one. You can find more donating tips by using a website like Charity Navigator.
  • Investing is taking a chance. There is no sure profit when investing. An investment opportunity with a low-risk, high-return investment can strike red flags! Take time to learn about the product and company beforehand. Also, prepare for a sales pitch. Watch for words like ‘guarantees’ and ‘promises’ with little ‘financial risks’.
  • Don’t deposit a check from, or wire money to, an unknown recipient. The law requires banks to have deposited checks available within days. However, to recover a fake check can take weeks. Someone who overpays using a check is likely connected with fraud.
  • Use strong passwords. Passwords should have eight or more characters. Use a combination of letters, symbols, and numbers that have no significance to you or records that lead back to your password.
  • Don’t reply to messages that ask for personal or financial information. These messages are likely waiting in your inbox, but send via telephone or text message too. Do not click these links or return these calls, remember you are a click away from a fraud.

Clean Up Your Budget

  • Clean up and clean out our house this fall and have a yard//garage sale. This is going to be a LOT of work, but in the end, we will have extra space AND some extra cash to put toward bills or savings.
  • Pay bills second, pay ourselves first. This means taking the 30 seconds to log in to the bank account and throw in some extra cash into the savings account. This is like, rule #1 of saving. Rule #2 is “Don’t touch your savings unless it’s an emergency, and even then, reconsider it!” Haha. Okay maybe not, but clearly for us financial discipline is lacking.
  • Create a daily spending limit and stick to it. That’s right. Daily. Because sometimes, those of us who aren’t so good with budgeting, need serious boundaries. This way, we can really look at “What am I spending my money on? Is this a necessity, a treat, or should I//do I need to save my daily allowance for something in a few days?”
  • Commit to paying down debt. There are a few ways to do this effectively, but, as I’ve been reading, the simplest is to take it in small chunks and pay off the smallest one first. Then tackle the next smallest, and so on. This is a great way to see progress! (And I like to see progress sooner than later!) There is a school of thought–and a wise one at that–that says pay off the debt with the highest interest rate. This is a really good idea too.
  • Focus on needs instead of wants… for now. I think we have to look closely what we want to spend our money on… for me, I like getting my nails done. I also like buying clothes for myself and my family. But right now these things need to be put on hold. We have more than enough, and frankly–even though I loathe it–I can do my own nails for a little while. I don’t want to deprive anyone, but I think it is a valid exercise to simplify life a bit; get creative with what we have, use what we have, and then, after a period of two or three months, see where our financial priorities are.
  • Choose DIY over convenience. This sort of goes hand-in-hand with #5, but I think it’s worth mentioning on its own. It takes five more minutes each morning to make your own cup of coffee rather than shelling out $2.00 for it everyday. ($2.00 x 7 = $14.00 a week! That’s $56 a month!) It takes 10 minutes to pack a lunch at home. See where I’m going here? Time and money are definitely precious commodities, but again, if you’re on a budget, it’s time (no pun intended) to consider what is worth our time versus what is worth our hard-earned money. 10 minutes for a healthier lunch packed at home means more to me than ordering a quick lunch in the cafeteria and not really knowing where the food actually came from.

 

Secrets of Well Managed Checking Accounts

Don’t ignore your statements.

This seems so obvious – to the point of not even worth mentioning. But it’s amazing how many of us fail to look at our statements every month, or to look at them thoroughly. Besides balancing your account – in other words, reconciling your posted balance against outstanding drafts or checks that have not been presented for payment – you need to examine your account thoroughly every month to make sure there isn’t something there that is out of place. Did the restaurant you went to a couple of months ago record a five dollar tip or a $25 tip? Did the shoe store who took your catalog purchase back really process the credit to your account like they were supposed to? Are there fees or debits that you can’t seem to account for? These are just some of the issues you’ll want to bear in mind as you’re studying your statement.

View your bank as a partner, not just a provider.

Even if you have the most basic of checking account products, your bank should demonstrate an interest in helping you manage it successfully. (And if they don’t, shop around for another bank.) Ask a banking customer service representative what tools, consumer education, and resources your bank provides or recommends to help their customers manage their finances properly. You may be surprised to learn that your bank offers website articles, free online or in person classes, apps, or even just free friendly advice that can help you run your checking account and your overall for personal finances with great efficiency.

Take the terms of your account seriously.

If your checking account agreement assesses additional fees for transactions that exceed a certain number, or for minimum balances that drop below prescribed amount, it’s important to take those restrictions seriously. Blowing them off here and there may not seem like a big deal at the time, but over the course of a few years it’s easy for those extra fees to pile up.