February 24, 2012
Car insurance is a necessary expense that all car owners need to pay. Many drivers don’t realize that they are likely paying too much to be insured. If you think you may be over paying for your car insurance here are 5 great tips to help you save money on your car insurance premium.
1) Raise Your Deductable: The first way to shave the cost of your car insurance premium is to raise your deductable. Having a low deductable keeps your premium high. While you will have to pay more for repairs if you do need to tap into your insurance, more than likely you will still see a savings over paying the higher rate up front.
2) Only Pay for the Coverage You Need: Check your policy very carefully and eliminate paying for options that you do not need. For example, if you have AAA don’t pay extra in your premium for road side assistance. Or, if you have an older vehicle you may want to consider dropping your collision coverage.
3) Take a Defensive Driving Course: While we all would like to have a clean driving record, for many this is simply not the reality. Signing up and completing a defensive driving course, especially if you don’t have a clean driving record, can save you a decent amount off your premium. While you will have to pay for the course, the discount usually lasts a few years after course completion, more than making up for the small fee you paid.
4) Know Your Credit Score: It is not uncommon for insurance companies today to use your credit score in helping to determine your insurance rate. The higher your score, the more you will save when it comes to car insurance. Check your credit report regularly and if your credit is less than stellar you should highly consider working to boost your credit score
5) Shop Around and Buy A Multi Insurance Policy: Finally, don’t be afraid to shop around for a better deal. You should never just go with the first quote you get. Instead, take the time to research several insurance companies and see what deals you can come up with. Additionally, if you bundle your car insurance with your homeowners and other insurance policies you can usually get a multi policy discount for even more savings.
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February 10, 2012
If you are looking to trim some money off your household expenses one item to consider is your cable bill. Today there are numerous options available that allow for you to watch many or even all of your favorite shows and movies without paying the high cost for cable. Here are some options you may want to consider.
Roku
Roku is fast becoming popular in households everywhere. With a small investment starting at around $50.00 you can purchase a Roku box. When you purchase a Roku box you can streamline right onto your television set. Roku offers a number of free channels and programs and also offers the option for streamlining Netflix, Hulu and many other paid for services, most which are considerably less than your current cable bill.
Netflix
Netflix offers streamlining of your favorite television shows and movies, all without commercial interruption. You can streamline Netflix through many devices including your computer, iPad, Xbox and more. Your monthly subscription fee is just $7.99 and there is no contract to sign which allows you to cancel whenever you like without paying any penalty fees.
Hulu and Hulu Plus
Hulu is another online streamlining provider similar to Netflix. Hulu has the added bonus of allowing viewers to watch current season television programs for the slight inconvenience of short commercial interruptions. Hulu Plus offers an even larger selection of current programs and movies for a small monthly fee of just $7.99 per month. Just like Netflix there are no cancellation fees and you can streamline through numerous devices including your PC, Roku box, iPad and more.
Even More Options
While Netflix and Hulu tend to be some of the more popular choices, other companies are also offering their own packages including Amazon and Apple. Just like with Netflix and Hulu you can watch many of your favorite TV shows and movies for a cost savings.
Don’t Forget The Freebies
Finally, there are free options when it comes to watching television and even movies. If you have an HD ready TV set you can purchase a low cost antenna attachment and have access to locally broadcasted TV channels for free. If your television is not HD ready you will need to additionally purchase an HD converter. As for movie lovers, check out your local library. Most library systems offer patrons access to movies for free including new releases and blue ray options.
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January 31, 2012
When you prepare your family budget, you include the obvious family members and their living expenses such as food, clothing, and shelter. But if you are a pet owner, you also need to include your pets into those budget calculations. If you don’t you will likely overspend or your will end up short on cash for the things your pets really need.
The pet business is he. Companies are marketing just about everything to pet owners these days including the cute clothing, luxury bedding and housing, gourmet meals, and high-priced toys. In order to keep your pets from breaking your bank, here are some tips to follow:
Budget for Basics
Many pet owners have had to give up their pals when they could no longer afford to keep them. Make sure you account monthly for your pet’s basic needs including food, treatments, medicines, treats, and grooming expenses.
Save for Medical Care
Set aside a sufficient sum of money into a savings account to cover annual veterinary costs and possible emergency care. Too often pet owners skip vital vet checkups, leaving pets to end up with even costlier medical problems down the road.
Stop the Impulse Buys
Your pet, particularly dogs and cats need good nutrition, shelter, medical care, and plenty of love. They don’t need pricey outfits, toys, and other items that may catch your attention in the store. It’s fine to keep pick up a new toy to replace something old but make a point of staying out of the pet supply aisle unless it is absolutely necessary. This can help you control any impulse buys.
New Pets Should Be Affordable
If you are not currently a pet owner, be sure you can afford to be one first before purchasing or adopting a pet. Even seemingly small pets like hamsters, fish, and reptiles may end up coming with regular expenses you can’t afford. Ask the pet store or the adoption agency what is the estimate of care costs for the year for an animal you are considering taking home. Any pet is a living creature and deserves proper care for its natural lifespan so be fair and don’t bring anything home you cannot fully afford.
If you can no longer afford to keep pets you have been caring for due to financial concerns, speak to family and friends about their adopting your pets. Never turn any pet into the wild to defend itself. It will likely die from the dangers they are not used to outside of your home. Turn in animals to the local humane society rather than turn them loose. Many shelters are no-kill and with luck, your pets will be adopted into a good home.
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January 31, 2012
There are few things scarier than the prospect of losing your job. Without the income you have come to depend on, how will you pay your bills? What if you don’t get re-hired or find new work before your savings run out? What if you don’t have an emergency fund? If you become laid off, there are some things you will need to take care of to ensure you receive any unemployment benefits you are entitled to. You will also want to consider what to do, if anything, about your current retirement fund and whether or not you will have health insurance for any length of time while unemployed.
Don’t Burn Bridges – if you are told you will be laid off; don’t cause a scene in the workplace. You don’t want to burn a bridge with the employer, because even if there is no chance of being rehired, your previous employer is going to be providing a reference for you when you start your job search.
Get Unused Vacation Time and Other Benefits – if you have unused vacation or sick time with your employer, or have expenses that have not yet been reimbursed, make sure you put in for any and all of these benefits you are entitled to.
File for Unemployment – even if you think your unemployment situation is temporary, file for unemployment benefits as soon as you are eligible. It can take several weeks before you receive unemployment money – so the earlier you do this, the better off you will be. Do not let embarrassment keep you from filing, you worked hard for this benefit and deserve to receive it while you are figuring out what to do next.
Start by Updating Your Resume – when you start looking for new job opportunities, you’re going to need an up to date resume that presents your skills and experience. Think about how you contributed to your last employer’s business success; and what skills you learned as a result. Include the details on your resume so potential employers can see more than just the number of months or years you worked at the same location. Employers want to know what you can offer them that other job applicants can’t – so put your best foot forward starting with your resume.
Look for Work and Apply – getting a new job is very much a numbers game. You will need to start finding every possible opportunity and start applying. Use the internet to find jobs you are qualified for, and visit companies you would like to work for and ask or check their website for available job openings. There are often job openings at large companies that haven’t been advertised yet – call and talk to the HR departments and ask – if you find unadvertised opportunities, you decrease competition for the position by getting an interview scheduled before the job is even posted.
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January 31, 2012
There are so many options these days for banking. No longer are we confined to brick and mortar financial institutions. We now have access to more competitive rates in online banking so there are a lot of decisions to make.
Here are some tips to help your pinpoint what you need in banking services
Review Your Current Deal
Many consumers have maintained the same bank account for years out of habit so it is essential that you first sit down and review what you currently have. Write a list of the banks you use and include the interest rate you earn, the amount of fees you pay each month for services, and transactions, and the main purposes of the account in relationship to your financial goals. If you don’t know the answer to these elements of banking, contact the financial institution that has your money and ask.
Compare Other Offers
Banks are highly competitive these days so you may find other offers much better than the ones you have currently. Before you go and sign up with a new bank, take the details of the new offers back to your current bank. If you’ve been a long-time loyal customer, your current bank may want to keep you and will give you the same perks which save you the trouble of an account transfer. If your bank declines, don’t hesitate to go where the deals are.
Redefine Your Goals
If you find you have several bank accounts that cost you money, consider consolidating into one savings and one checking account at the location with the best offerings. Many banks like ING Direct will allow you to have sub accounts you can use to identify specific savings goals such as for emergency funds, vacations, holiday spending and the like.
Keep Up On Changes
Banks have been making a lot of changes lately, especially in the fee and penalty department. Make sure to open and read all announcements and disclosure information being sent to you from your bank. Unless you stay in the know, you will have difficulties making smart decisions regarding your money.
Keep tabs on the offers other banks are making too. As many banks are cutting back and reducing perks to customers, it can be well worth your time to track bank rates and other services. You may also want to check out a local credit union where the changes are not as drastic as major banks are making.
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January 30, 2012
Even if you are pinching every penny, there is no reason why you can’t take pride of your home. There are many inexpensive and creative ways to update your home so you can enjoy staying in more often.
Here are some tips for changing up the look of your home without bursting your budget:
Declutter and Reorganize
You should start the change process by first decluttering your home one room at a time. Clean out your cabinets, closets, and shelves, getting rid of the things you no longer use including décor you’ve grown tired of over the years. Sell these items in a yard sale or connect with a consignment or thrift shop. Use any monies earned from the sale of your old stuff should be invested into your new pruchases.
Establish a Workable Budget
If the sale of your old goods did not net you the amount of cash needed for your home makeover, you will need to set up a spending budget for the upgrades you plan to make. It can help to focus on one room at a time and then work to save for work on the additional rooms. You can set savings timeless for buying the new items you need so you won’t tend to overspend once in the home improvement store.
Shop First for Deals
While you may have preconceived notions of what you want to do with your home as far as paint colors and such, try keeping an open mind. Browsing in the clearance aisles can save you a lot of money and still give you things to work with. For instance, mixed paint that was a mistake for someone else can earn you 50% or more off the original price.
Recycle What You Have
It can be cheaper to reupholster a chair or a sofa than it would be to buy a brand new set. Consider also moving furniture to other rooms to serve other purposes. Repurposing what you already have can be a fun and very inexpensive project that changes the look of your home.
Trade Up
You likely have frugal friends that may be willing to swap their tired old things for yours. You may also join forces with your pal and learn a new skill for free at the local home improvement center such as refinishing old furniture or retiling a bathroom.
There are many creative ways to update the looking of your home without investing thousands of dollars you don’t have to spend. Take time to consider your options and keep your mind open to the possibilities.
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January 30, 2012
Part of solidifying your personal finance future involves planning. From the basic budget to the more complex retirement investments, it is important to take the time to map out your financial future rather than fly by the seat of your pants.
Even before you establish your weekly or monthly budget, you need to set time aside to get mentally prepared. You can run all the numbers you want but if you are not ready to fully commit to an overhaul your personal financial life, your budget will do little for you.
The first step to the mental preparedness in personal financial management is sitting down to define your wants versus your needs. If you are living paycheck to paycheck, this step is vital to better budgeting and more stable finances.
Here are some tips to help you get started on the process.
- Needs – Needs are the things in your life you need to exist. This category typically involves your food, shelter, clothing, and basics you need to survive. But there can be a fine line within the needs category. For instance, you need to eat a healthy dinner every night but you don’t have to eat that dinner in a pricey restaurant.
- Wants – Wants are the things you spend money on but necessarily need to survive such as the restaurant dinner, the extended cable package, or the new living room set you cannot afford.
Dealing with the Difference
You should review your current expenses and start making cuts to it based on the things you’ve identified as wants and needs. It is not easy to make these decisions but in the interest of saving more money and eliminating your debts in a faster period of time, you will need to reduce spending to only what you need. You will need to have the discipline it takes to make the necessary cuts.
The money from the expenses you are able to cut from your budget should be utilized to first eliminate debt and then be deposited into savings with every paycheck. Establish a spate savings goal for the wants in your life. You can learn to live with still having the things you want by waiting until you save enough to afford that want in cash.
Short-Term Goal Setting
You can achieve a lot in your personal financial life by creating written lists of goals. For the items you want, you can set a short-term goal list and include how much it costs and how long it will take you to save it according to your budget. Keep this short-term list in a place you can easily remind yourself why saving is important.
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January 30, 2012
The economy is starting to show signs of improving in some areas of the country, but there are still millions of people struggling through unemployment, and millions more who are working but struggling to make ends meet. In difficult financial times, some people are tempted to withdraw money from their retirement accounts – but is it a good idea? Here’s what you should know about taking money out of retirement savings before you are actually retired:
Financial Consequences of Early Withdrawal
Almost every retirement account has penalties for taking the money out before you retire. The IRS is in control of tax penalties of retirement plans, and your retirement plan administrator (generally your employer) can also charge fees for taking your money out early. The result is losing out on money you would have gotten had you left the money in the account until the required withdrawal age.
Here’s an example of what you can expect if you take money from your retirement early:
- Paying a 10% tax to the IRS on early retirement withdrawals that do not meet a limited list of possible exceptions for the penalty.
- Paying higher income taxes, since the withdrawal of retirement funds is added to your yearly, taxable income.
- Losing out on earnings your retirement fund would have experienced if the money was left in the account.
- Many retirement plans charge an additional 10% penalty for early withdrawal of funds (on top of the IRS penalty).
- Losing out on any tax relief you would have received by contributing and having money in a retirement fund.
What to Do Instead of Taking Money Out of Retirement Funds
If the above list of potential costs for early retirement withdrawals has lead you to the conclusion that it’s not the best way to access money during a financial hardship, here are some ideas for what you can do instead of an early withdrawal:
Borrow with a 401(k) Loan: if you have a 401(k) plan, many account administrators will allow you to borrow money in the form of a loan instead of taking an early withdrawal. The difference between the loan and an early withdrawal is the money you borrow is not taxable as income unless you don’t repay it. When you borrow from a 401(k) plan, you make repayments with interest – but you can feel good about it because the payments and interest are going back into your retirement fund and you’re paying yourself back.
Roth IRAs: the Roth IRA is a special kind of retirement account that receives contributions with money that has already been taxed. That means it is one of the few retirement accounts that you can take a withdrawal penalty and income tax free from a Roth IRA. If you absolutely must use money you have saved for retirement, it is best to take from a Roth IRA rather than other types of retirement accounts.
Posted in Saving and Investing No Comments »
January 30, 2012
With the large number of internet and national banks that offer free ATM use, why are you still paying for ATM fees? If your bank charges you when you make a withdrawal from an ATM that are not at one of their branch locations, you are spending money you don’t need to spend. Here are 4 banks that offer checking accounts and free ATM use – regardless of the geographic location or name on the ATM you use to access your money:
Ally Bank: Open a checking account with Ally Bank (formerly GMAC) and receive .50% APY interest on your account balances up to $15,000. You don’t have to keep a minimum balance and there is no charge to open your account. If you use your ATM and get charged fees at other banks, Ally will reimburse those fees.
Charles Schwab: Open a free checking account with Charles Schwab and enjoy banking without fees. You don’t need to keep a minimum balance in your account, you don’t have to pay for checks, you don’t have to pay for envelopes to make deposits by mail, and you can even make a deposit by taking a photograph of a check with a smartphone. You can withdraw money from any ATM, anywhere in the world – and if the other bank charges you a fee for using their ATM, Charles Schwab will reimburse you for that fee.
ING Direct: Open a checking account with ING Direct and receive .20% APY interest up to a balance of $49,999. You can make paper check deposits for free with their postage-paid envelopes, use the free online bill pay services, and access your money at over 35,000 ATM machines. You can also send free person to person payments.
Bank of Internet: Open a rewards checking account that offers up to 1.25% APY, no monthly maintenance fees and no minimum balance requirements for as little as $100. If you’ve steered clear of internet banks in the past because they can be a pain to make deposits to – you’ll love the Bank of Internet’s ability to accept deposits by scanning a check at home! Your first order of 50 checks is free. You can get unlimited cash back when shopping with your debit card.
If your local bank is charging you for ATM use or for monthly account maintenance, it may be time to look at other options to save money. These are just four banks that offer checking accounts and free ATM use; with a little research you can find several others and most offer more features and benefits than you’re probably receiving with your current bank.
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January 30, 2012
One of the reasons people determine buying a home is a financially better decision than renting is due to the tax breaks offered to homeowners. While it’s true there is tax deductions provided to homeowners, it’s also what makes being a homeowner more complicated when it comes to filing your taxes. Here is what you need to know about your homeowner tax-deductible expenses:
You Must Itemize
In order to claim tax breaks for homeowners, you must itemize your deductions rather than take the standard deduction. If you don’t itemize, you can’t take the following deductions.
Mortgage Interest Deductions: if you have a mortgage, you can deduct the amount of interest paid. To take the mortgage interest deduction, you should itemize deductions on Schedule A and file Form 1040. For most homeowners, the amount of your mortgage payment that goes toward interest is much higher than the amount that goes toward the principal balance. If your home loan is under $1 million, you can deduct 100% of mortgage interest paid. Mortgage interest deductions can be taken for your home mortgage, home equity loans, and home equity line of credit loans.
PMI Deductions: if you obtained a mortgage at any point beyond 2006 with less than a 20% down payment, you will have what is called “private mortgage insurance” – PMI. PMI protects home loan lenders against risky borrowers who don’t have at least 20% to put down when buying a home, and helps the lender recover their losses if you foreclose. The amount of your income may reduce the amount of PMI deduction you are allowed to take.
Mortgage Points Deductions: when you get a home loan to pay for a house, you prepay a portion of the interest at the closing to the mortgage lender. You may see points in the form of loan origination fees, discount points, loan discount or maximum loan charges. When you pay the points at closing, you are getting a lower interest rate on the amount of money you borrow. On your taxes, you can deduct the amount of points paid as mortgage interest, but you will have to check IRS guidelines to see if you are eligible to deduct 100% of the points paid during the first year of ownership, or if you have to deduct the points over the lifetime of your mortgage.
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