Living frugally isn't difficult, you simply have to take a few steps. They aren't large steps, in fact, they are baby steps. The difficult part is staying on the path.
Step One: Know your destination.
You can't stay on the path towards your goals if you don't even know what your goals are. Have you ever gone into a grocery store without a list? You wander up and down the aisles, not really knowing if you are getting what you need. This is a lot like your frugal living. You have to know where you are going and what you need in order to follow the correct path.
Step Two: Don't take every path.
You will quickly find that if you follow every single frugal path that you encounter, you will go crazy! It just isn't possible. Not everything works for every person. For example, the busy mom with five small children is not going to have time to make homemade bread and everyone's clothes. She might simply focus on shopping wisely and reducing the utility bills. The retired homemaker may have time in which to make her own laudnry soap and plant a garden. It simply depends on where you are at in your life -- and how much you want to take on. There are some things that are just worth it.
Step Three: Keep searching for new paths.
You know your destination, but you don't always know how to get there. Frugal living is an ongoing challenge. There is no end to it. You keep learning and you keep pushing yourself to save a little bit more.
Step Four: Budgeting is your gasoline.
You have to know where you are spending your money in order to spend less. It often helps to track every penny that you spend. Right down to the penny. Don't cheat. Those small expenditures can really add up.
Your budget will keep you working towards your goal and spending less each month. This is where you can really sit down and see what is necessary and what isn't. When everything is on paper, it is easy to see the changes that could be made.
Preparing for Retirement
When it comes to retirement, there is more to consider than your retirement account. Preparing for retirement requires more than simply putting money away. While it is essential that you start as young as possible when working towards your retirement savings, you should work on other areas as well.
When we are young, we often think that we have plenty of time. So many people start their retirement investments late in life. This means that they will retire later with less money in their retirement funds. It also means that they will have to invest a larger portion of their monthly income in order to meet their retirement goals.
One of the most important things you should do to protect you into retirement is to remain healthy. Medical concerns are a top problem facing the elderly and their income situations. Getting older happens, but you can work at remaining healthy.
Start with taking care of your health by exercising, eating right and getting enough sleep. Learn to handle stress appropriately and handle health concerns immediately.
No matter how healthy you are, you will find that your medical expenses and insurance premiums will increase as you age. It can often be very difficult to purchase reasonable insurance when you are older. If you purchase your insurance now, in most cases you will be able to keep it so that it will be there when you are older.
You can't simply fall back on Medicare, which requires you be 65 years of age (except in special cases). If you have a major health problem at 63 without insurance, you will find that your entire retirement fund could be depleted rather quickly. Even if you qualify for Medicare, it doesn't cover everything. In most cases supplemental insurance is great for taking up the slack.
Don't think of Social Security as a retirement fund. This may have been true at one time for some people, but things have changed. In most cases, Social Security simply covers the basics, but not an excellent lifestyle. You should have retirement savings to fall back on, whether they be an IRA, 401(k) or other form of investment. In addition, if you are young there may be no Social Security when it comes time for you to retire.
When we are young, we often think that we have plenty of time. So many people start their retirement investments late in life. This means that they will retire later with less money in their retirement funds. It also means that they will have to invest a larger portion of their monthly income in order to meet their retirement goals.
One of the most important things you should do to protect you into retirement is to remain healthy. Medical concerns are a top problem facing the elderly and their income situations. Getting older happens, but you can work at remaining healthy.
Start with taking care of your health by exercising, eating right and getting enough sleep. Learn to handle stress appropriately and handle health concerns immediately.
No matter how healthy you are, you will find that your medical expenses and insurance premiums will increase as you age. It can often be very difficult to purchase reasonable insurance when you are older. If you purchase your insurance now, in most cases you will be able to keep it so that it will be there when you are older.
You can't simply fall back on Medicare, which requires you be 65 years of age (except in special cases). If you have a major health problem at 63 without insurance, you will find that your entire retirement fund could be depleted rather quickly. Even if you qualify for Medicare, it doesn't cover everything. In most cases supplemental insurance is great for taking up the slack.
Don't think of Social Security as a retirement fund. This may have been true at one time for some people, but things have changed. In most cases, Social Security simply covers the basics, but not an excellent lifestyle. You should have retirement savings to fall back on, whether they be an IRA, 401(k) or other form of investment. In addition, if you are young there may be no Social Security when it comes time for you to retire.
Critical Protection Issues - How To Get The Right Level of Personal Protection
Having looked at the quality of cover, we now turn our attention to:
How to get the right level of protection
Using our example again, Dr Cureall has a clear idea now on the quality of protection he wants, and now needs to make a decision regarding the level of cover he requires.
He is a family man in his late thirties, his wife, 3 years younger, is not working, and they have two children, Mat and Laura aged four and two.
We suggested to him that he should follow a simple process to work out how much cover he should buy:
- Find out what income they need to create
- Work out what they already have
- Decide on the time period to be covered
We asked Dr Cureall to fill in a detailed spending plan of what his wife would need if he had died yesterday – and vice versa.
This is to ensure that they would have enough income between now and retirement and into old age, should either of them die prematurely.
The Solution
Mortgage – it is decided to fully cover the interest only £200,000 mortgage with level term assurance over the 20 years of the loan. Since it is only slightly more in premiums, Dr Cureall decides on two single life policies instead of one joint life plan. This would mean on either death, the surviving partner would still have their cover intact.
Since the strategy we have created for him involves overpaying on the mortgage (he has a flexible mortgage) we could have used decreasing term assurance to mirror the reducing debt. However, Dr Cureall feels he may not reduce the debt all the time, and will reduce the sum assured on the level term assurance when he feels it is appropriate.
Dr Cureall already has sufficient critical illness cover therefore no additional cover was required.
So, on either death, the surviving partner would be free of debt.
What’s next?
Living expenses – this is where the spending plan comes in. This, together with a forecastig tool we use, Dr Cureall is able to see how the next 50 years will look on the scenario of either/both deaths.
Clearly their main priority is to provide for the children. This means being able to give them the life they would have had if the grim reaper had not called. So any school and university fees are built in as well as holidays and general living expenses.
Due to the children’s ages and university costs being anticipated, the Curealls look at their projections (‘financial map’) and decide on 22 years as the optimum time period. This also would give Mrs Cureall enough to live on into her old age.
The projection takes into account all NHS benefits, which are considerable now that Dr Cureall has 14 years service, including spouse and child payments. (In addition we recommend that the NHS death in service benefit is placed into trust which will potentially save the family £60,000 in Inheritance Tax).
Because we have built in these NHS payments, the amount of cover required on Dr Curealls life is nowhere near what he expected. They decide on more lump sum cover, with the balance to be provided by Family Income Benefit (pays out an annual income).
This time instead of level protection, the Curealls decide on indexed cover to protect against inflation. After all we can’t plan when we are going to die, and in payment the amounts would increase as well.
We recommend all these policies are written in trust to minimise Inheritance Tax, as well as ensure the monies are paid to the right people quickly on death.
How to get the right level of protection
Using our example again, Dr Cureall has a clear idea now on the quality of protection he wants, and now needs to make a decision regarding the level of cover he requires.
He is a family man in his late thirties, his wife, 3 years younger, is not working, and they have two children, Mat and Laura aged four and two.
We suggested to him that he should follow a simple process to work out how much cover he should buy:
- Find out what income they need to create
- Work out what they already have
- Decide on the time period to be covered
We asked Dr Cureall to fill in a detailed spending plan of what his wife would need if he had died yesterday – and vice versa.
This is to ensure that they would have enough income between now and retirement and into old age, should either of them die prematurely.
The Solution
Mortgage – it is decided to fully cover the interest only £200,000 mortgage with level term assurance over the 20 years of the loan. Since it is only slightly more in premiums, Dr Cureall decides on two single life policies instead of one joint life plan. This would mean on either death, the surviving partner would still have their cover intact.
Since the strategy we have created for him involves overpaying on the mortgage (he has a flexible mortgage) we could have used decreasing term assurance to mirror the reducing debt. However, Dr Cureall feels he may not reduce the debt all the time, and will reduce the sum assured on the level term assurance when he feels it is appropriate.
Dr Cureall already has sufficient critical illness cover therefore no additional cover was required.
So, on either death, the surviving partner would be free of debt.
What’s next?
Living expenses – this is where the spending plan comes in. This, together with a forecastig tool we use, Dr Cureall is able to see how the next 50 years will look on the scenario of either/both deaths.
Clearly their main priority is to provide for the children. This means being able to give them the life they would have had if the grim reaper had not called. So any school and university fees are built in as well as holidays and general living expenses.
Due to the children’s ages and university costs being anticipated, the Curealls look at their projections (‘financial map’) and decide on 22 years as the optimum time period. This also would give Mrs Cureall enough to live on into her old age.
The projection takes into account all NHS benefits, which are considerable now that Dr Cureall has 14 years service, including spouse and child payments. (In addition we recommend that the NHS death in service benefit is placed into trust which will potentially save the family £60,000 in Inheritance Tax).
Because we have built in these NHS payments, the amount of cover required on Dr Curealls life is nowhere near what he expected. They decide on more lump sum cover, with the balance to be provided by Family Income Benefit (pays out an annual income).
This time instead of level protection, the Curealls decide on indexed cover to protect against inflation. After all we can’t plan when we are going to die, and in payment the amounts would increase as well.
We recommend all these policies are written in trust to minimise Inheritance Tax, as well as ensure the monies are paid to the right people quickly on death.
Strategies in Personal Finance: Basic Investment Principles for Today and Tomorrow
This book is not a quick "how-to" but rather a substantive text intended for undergraduate course in financial planning and investments management. Material is arranged in sections relevant to people in their accumulation years (ages 20 through 60) and their retirement years; the first two sections address management and investment tools and opportunities, and the third focuses on management decisions. An extended case study, end-of-chapter questions, a glossary, suggested readings (including relevant "Getting Going" columns by Jonathan Clements of the Wall Street Journal, and website and other resources are included. Keith V. Smith is a business writer formerly associated with Krannert School of Business at Purdue University, and Jane A. Smith is a consultant for small businesses.
Very personal finance: when love is gone and paradise is lost, one question remains: who gets the toaster?
You've decided to slap on the ol' bail and chain. Great! Just remember, the whole "Till death do you part" thing can fall apart in a Britney minute, so you better protect yourself financially, Rockefeller. Here are our tips on discussing finances before shacking up or walking down the aisle--and what to do if things torn ugly.
PRE-SHACK-UPS
Before she gets too comfy on the couch, have a sit-down to divide fiscal responsibilities. "When you start spending together, you need to talk money" says Wall Street Journal columnist Jeff D. Opdyke, author of Love and Money. Maybe she pays electric and you cover cable. But Opdyke draws the line at sharing checking accounts, credit cards, and mortgages while dating. There's nothing to stop one partner from raiding the joint checking account, he says, or going on a spending spree after finding the other in bed with the personal trainer. "No joint assets," he rules.
Before she takes your name, consider getting her to sign on the dotted line. Both parties can benefit from a prenup, says Opdyke. It could even be good for your wife-to-be if, say, she's a player on Wall Street, while you're a mere haiku writer. Meanwhile, you'd want to make sure Nana's silverware stays in your family should wifey suddenly find your union irreparably tarnished. The key: "Approach this as a business decision," says Opdyke, "not a statement on the longevity of the marriage."
POSTNUPS (AND THE BIG "D")
Never got a prenup? Try "postnups," which are contracts made after you've tied the knot. And if she's already grabbed her yoga mat and split, hire a lawyer. Just make sure you keep your emotions in check. "People, in general, are greedy at heart," says Opdyke. "I've seen couples fight over salt and pepper shakers?' Better to hand over the china with a smile--that way she won't squawk as much about the plasma TV.
PRE-SHACK-UPS
Before she gets too comfy on the couch, have a sit-down to divide fiscal responsibilities. "When you start spending together, you need to talk money" says Wall Street Journal columnist Jeff D. Opdyke, author of Love and Money. Maybe she pays electric and you cover cable. But Opdyke draws the line at sharing checking accounts, credit cards, and mortgages while dating. There's nothing to stop one partner from raiding the joint checking account, he says, or going on a spending spree after finding the other in bed with the personal trainer. "No joint assets," he rules.
Before she takes your name, consider getting her to sign on the dotted line. Both parties can benefit from a prenup, says Opdyke. It could even be good for your wife-to-be if, say, she's a player on Wall Street, while you're a mere haiku writer. Meanwhile, you'd want to make sure Nana's silverware stays in your family should wifey suddenly find your union irreparably tarnished. The key: "Approach this as a business decision," says Opdyke, "not a statement on the longevity of the marriage."
POSTNUPS (AND THE BIG "D")
Never got a prenup? Try "postnups," which are contracts made after you've tied the knot. And if she's already grabbed her yoga mat and split, hire a lawyer. Just make sure you keep your emotions in check. "People, in general, are greedy at heart," says Opdyke. "I've seen couples fight over salt and pepper shakers?' Better to hand over the china with a smile--that way she won't squawk as much about the plasma TV.
How low? With new tax brackets, now's the time to lower your withholding - Personal Finance
Barrels of media ink have been spilled over the 25 million checks Uncle Sam mailed out as advance refunds on the 2003 child tax credit. Plenty of attention has been given to other aspects of the so-called Jobs and Growth Tax Relief Reconciliation Act of 2003, too, including dividend and capital gains cuts and increased, deductions for business owners. But little notice has been paid to the one thing that almost all taxpayers can do immediately to take advantage of the legislation--change the withholding from their paychecks to reflect new, lower marginal tax brackets.
The tax bracket changes are relatively small, so the extra money in each paycheck won't be enough to overcome fiscal inertia in many households or to get the nation's financial advisers clamoring about the oversight. Still, if you don't make the change, you're paying the government too much money and will have to wait for your tax refund to get it back.
Under the new law, the 38.6 percent income bracket drops to 35 percent; the 35 percent bracket falls to 33 percent; 30 percent dips to 28 percent; and 27 percent goes to 25 percent. Plus, the basic standard deduction jumps for millions of taxpayers. Granted, it doesn't sound like a lot, but for a married couple filing jointly and making $75,000 per year (in the new 25 percent bracket), a tweak in the withholding could add $125 per month to take-home pay.
For certified financial planner Rick Fingerman, president of Financial Planning Solutions Inc. in Medford, Massachusetts, it's an easy call. "More money in your pocket now is better than more money left to Uncle Sam until refund time. "The exceptions, he says, are people who can't seem to save other than through withholding and couples with self-employment income whose taxes tend to get a little fuzzy each year.
Even the forced savings component tends to be overstated, Fingerman says. Surveys have shown for years that most people spend their refunds rather than tuck them into retirement funds or use them to prepay the mortgage. (Although, to be fair, a substantial minority does pay debts with the yearly windfall.) Instead, put that $125 extra from each paycheck in the 401(k) plan, Junior's education fund, or a more sizable payment on that nagging credit card balance, and the immediate difference for your finances can be significant.
The tax bracket changes are relatively small, so the extra money in each paycheck won't be enough to overcome fiscal inertia in many households or to get the nation's financial advisers clamoring about the oversight. Still, if you don't make the change, you're paying the government too much money and will have to wait for your tax refund to get it back.
Under the new law, the 38.6 percent income bracket drops to 35 percent; the 35 percent bracket falls to 33 percent; 30 percent dips to 28 percent; and 27 percent goes to 25 percent. Plus, the basic standard deduction jumps for millions of taxpayers. Granted, it doesn't sound like a lot, but for a married couple filing jointly and making $75,000 per year (in the new 25 percent bracket), a tweak in the withholding could add $125 per month to take-home pay.
For certified financial planner Rick Fingerman, president of Financial Planning Solutions Inc. in Medford, Massachusetts, it's an easy call. "More money in your pocket now is better than more money left to Uncle Sam until refund time. "The exceptions, he says, are people who can't seem to save other than through withholding and couples with self-employment income whose taxes tend to get a little fuzzy each year.
Even the forced savings component tends to be overstated, Fingerman says. Surveys have shown for years that most people spend their refunds rather than tuck them into retirement funds or use them to prepay the mortgage. (Although, to be fair, a substantial minority does pay debts with the yearly windfall.) Instead, put that $125 extra from each paycheck in the 401(k) plan, Junior's education fund, or a more sizable payment on that nagging credit card balance, and the immediate difference for your finances can be significant.
A Frugal Christmas
Most people don't like to think of watching their budget at Christmas. Money may be tight, but they don't want to admit that they can't afford to give expensive gifts. Remember, if a nice gift gets you into debt, then it isn't worth it to buy. You have to draw the line in the sand and say "I'm not going to borrow money anymore."
If you are paying off debt, don't let Christmas be an excuse to go back into debt. Making a budget for the big holiday is crucial to not spending too much. You should start saving a few months in advance, but since we're past that time, if you haven't started a budget, then you have to get creative. Don't buy something so expensive that you are still paying for it in March ... in fact, don't buy ANYTHING that you can't afford! It's time to break the cycle of spending more than you make.
One way to do this, especially if you have a large family, is to draw names for gift-giving instead of buying for everyone. Everyone will still get a gift, and no one will have to overspend to do it. Set a dollar limit so people don't go overboard on spending.
Look for deals. There are plenty of Web sites out there that advertise great deals on used items. Take into account that "used" doesn't mean "cheap quality". There are plenty of times when someone buys clothes and either doesn't like them or they don't fit. Then they want to sell them. People can also get bored with toys, musical instruments and all sorts of things and want to get rid of them. Take advantage of deals!
Just remember ... it's the thought that counts. And many times, the right thought can translate into a gift that will really make the day of the person to whom you give it. Making someone's favorite dinner can be a great and inexpensive gift. It also is something that you put effort into, which holds more meaning than just stopping at a store and buying something. Try it! Get creative with gift-giving and it can be more fun than receiving gifts.
If you are paying off debt, don't let Christmas be an excuse to go back into debt. Making a budget for the big holiday is crucial to not spending too much. You should start saving a few months in advance, but since we're past that time, if you haven't started a budget, then you have to get creative. Don't buy something so expensive that you are still paying for it in March ... in fact, don't buy ANYTHING that you can't afford! It's time to break the cycle of spending more than you make.
One way to do this, especially if you have a large family, is to draw names for gift-giving instead of buying for everyone. Everyone will still get a gift, and no one will have to overspend to do it. Set a dollar limit so people don't go overboard on spending.
Look for deals. There are plenty of Web sites out there that advertise great deals on used items. Take into account that "used" doesn't mean "cheap quality". There are plenty of times when someone buys clothes and either doesn't like them or they don't fit. Then they want to sell them. People can also get bored with toys, musical instruments and all sorts of things and want to get rid of them. Take advantage of deals!
Just remember ... it's the thought that counts. And many times, the right thought can translate into a gift that will really make the day of the person to whom you give it. Making someone's favorite dinner can be a great and inexpensive gift. It also is something that you put effort into, which holds more meaning than just stopping at a store and buying something. Try it! Get creative with gift-giving and it can be more fun than receiving gifts.
Personal Finance - How To Reduce Your Monthly Expenses
Everyone has fixed expenses which are the basic of needs for our daily living. There is no way to eliminate the fixed expenses but with some innovative budgeting, you could save some good money from this practice. If you have debt problem, a good practice in expense control and budgeting can help you to free up enough money to pay down your debt and may prevent you from bankruptcy. Of course, to accomplish your goal, you might have to live a very austere existence and scarification.
This article will list down some ideas on how to lower your expenses. While reading this article, you can make a list of you own ideas to cutting down your expenses.
Ways To Save Money
1. Reduce the Number Of Credit Cards
For many people, owning a credit card is the style of life and there are people holding 5 to 10 credit cards. It's so convenient to make payment with credit cards and you many overlook your budget. Although to terminate all credit cards are not possible for many people, you could reduce the number of credit cards in hand.
2. Ask for a Lower Credit Card Interest Rate
A major consumer group conducted a study to find out how easy it is to get a lower credit card interest rate. Fifty-seven percent (57%) of those who simply telephoned their credit card company and asked for a lower interest rate got one instantly.Getting your credit card interest rate lowered depends on various factors. Normally the bank will approve your request if you meet the following conditions:
* You have a good credit rating -- meaning no late pay notations on your credit report and a good credit score;
* You do not have a high debt-to-income ratio and you do not carry a big balance on your credit card;
* You do not send in just the minimum payment required each month;
* You have an excellent payment record with that particular creditor;
* The credit card is not one that is categorized as "sub-prime", meaning it is not a secured credit card or one marketed exclusively to those with bad credit.
When you call and ask for a lower interest rate, your reasoning should be based on the argument that you deserve it because you're an excellent customer or you're getting better offers from other credit card banks.
3. Always Buy Classic Style on Clothing
Clothing fads come and go so quickly and it will become out of fashion after a season.Instead, buy only good quality classic clothing that you can wear five years from now if you haven't worn it out by then. This will help you to reduce the frequency of buy new cloths.
4. Know Your Budget on Food
According to some survey, people who do not know how much they spend on groceries each month are twenty times more likely to be over their heads in debt than those who know exactly how much they spend on food each month. A lot of money can be saved by with below practices:
* Stop eating outside - Dinners you prepare at home is significantly less expensive than meals you pay someone else to prepare.
* Don't buy what you don't really need - Good examples are soft drinks, sugary snacks and other sweets. Giving them up will improve your health, reduce your medical and dental-related expenses and fatten your wallet.
* Get the best price by comparing supermarkets -- Don't shop at the closest supermarket just because it's more convenient. Driving a mile or two down the road can save you as much as $50 per week on groceries.
5. Car pool with your neighbors
If you have neighbors who work close to your company, you can car pooling with them to save gasoline and transportation cost.
This article will list down some ideas on how to lower your expenses. While reading this article, you can make a list of you own ideas to cutting down your expenses.
Ways To Save Money
1. Reduce the Number Of Credit Cards
For many people, owning a credit card is the style of life and there are people holding 5 to 10 credit cards. It's so convenient to make payment with credit cards and you many overlook your budget. Although to terminate all credit cards are not possible for many people, you could reduce the number of credit cards in hand.
2. Ask for a Lower Credit Card Interest Rate
A major consumer group conducted a study to find out how easy it is to get a lower credit card interest rate. Fifty-seven percent (57%) of those who simply telephoned their credit card company and asked for a lower interest rate got one instantly.Getting your credit card interest rate lowered depends on various factors. Normally the bank will approve your request if you meet the following conditions:
* You have a good credit rating -- meaning no late pay notations on your credit report and a good credit score;
* You do not have a high debt-to-income ratio and you do not carry a big balance on your credit card;
* You do not send in just the minimum payment required each month;
* You have an excellent payment record with that particular creditor;
* The credit card is not one that is categorized as "sub-prime", meaning it is not a secured credit card or one marketed exclusively to those with bad credit.
When you call and ask for a lower interest rate, your reasoning should be based on the argument that you deserve it because you're an excellent customer or you're getting better offers from other credit card banks.
3. Always Buy Classic Style on Clothing
Clothing fads come and go so quickly and it will become out of fashion after a season.Instead, buy only good quality classic clothing that you can wear five years from now if you haven't worn it out by then. This will help you to reduce the frequency of buy new cloths.
4. Know Your Budget on Food
According to some survey, people who do not know how much they spend on groceries each month are twenty times more likely to be over their heads in debt than those who know exactly how much they spend on food each month. A lot of money can be saved by with below practices:
* Stop eating outside - Dinners you prepare at home is significantly less expensive than meals you pay someone else to prepare.
* Don't buy what you don't really need - Good examples are soft drinks, sugary snacks and other sweets. Giving them up will improve your health, reduce your medical and dental-related expenses and fatten your wallet.
* Get the best price by comparing supermarkets -- Don't shop at the closest supermarket just because it's more convenient. Driving a mile or two down the road can save you as much as $50 per week on groceries.
5. Car pool with your neighbors
If you have neighbors who work close to your company, you can car pooling with them to save gasoline and transportation cost.
What You Need To Know About Low Interest Rate Credit Cards
Low interest rate credit cards are often offered to people with excellent credit ratings. These low interest cards make it easier to pay off balances and helps a person save money. There are many reasons why these cards work so well, but there are also some things to look out for when choosing a low interest rate credit card.
The interest rate is what causes so many problems for people. When a person charges something to their credit card and does not pay it back before the end of the grace period the credit card company charges interest on the balance. Interest is a percentage of the balance. For example a $100 balance at a 10% interest rate equals $10, so now instead of owing $100 a person owes $110.
After time this really begins to add up and eventually a person who is making only the monthly minimum payment is really only paying the interest accrued. That is why people get trapped into credit card debt so easily. Cards that offer a low interest rate offer a chance for a person to pay down their actual balance.
However, the low interest rate usually comes at a price. The credit card companies make their money off interest and fees. When they offer a low interest rate they usually make it up in fees. When a person is looking for a low interest rate credit card there are a few things they must watch out for. Many companies instate an annual fee. The annual fee can end up being as much as the interest saved.
Many times the low interest rate is only temporary. If the offer say ‘introductory’ then the interest rate will go up. A person should check out how much the interest will go up because many times they are higher verses other credit cards. They also jump up other fees like balance transfers or over limit fees. These are all things a person must look for when choosing a low interest rate credit card.
Low interest rate credit cards can be a good deal if a person chooses wisely. Usually, though, to get the best low interest rate credit cards a person needs to have very good credit, which includes low average credit card balances. Even so, a person with less than perfect credit may be able to find a low interest credit card that works for them.
The interest rate is what causes so many problems for people. When a person charges something to their credit card and does not pay it back before the end of the grace period the credit card company charges interest on the balance. Interest is a percentage of the balance. For example a $100 balance at a 10% interest rate equals $10, so now instead of owing $100 a person owes $110.
After time this really begins to add up and eventually a person who is making only the monthly minimum payment is really only paying the interest accrued. That is why people get trapped into credit card debt so easily. Cards that offer a low interest rate offer a chance for a person to pay down their actual balance.
However, the low interest rate usually comes at a price. The credit card companies make their money off interest and fees. When they offer a low interest rate they usually make it up in fees. When a person is looking for a low interest rate credit card there are a few things they must watch out for. Many companies instate an annual fee. The annual fee can end up being as much as the interest saved.
Many times the low interest rate is only temporary. If the offer say ‘introductory’ then the interest rate will go up. A person should check out how much the interest will go up because many times they are higher verses other credit cards. They also jump up other fees like balance transfers or over limit fees. These are all things a person must look for when choosing a low interest rate credit card.
Low interest rate credit cards can be a good deal if a person chooses wisely. Usually, though, to get the best low interest rate credit cards a person needs to have very good credit, which includes low average credit card balances. Even so, a person with less than perfect credit may be able to find a low interest credit card that works for them.
Things To Consider Before Selecting An Online Broker
Today, most of the stock transactions are being conducted online. It has become very important to select a good online broker, based on specific investment needs and preferences. The number of companies offering online brokerage services has increased over the years, making it very difficult to select the best online broker. Listed below are some of the features of online brokers that you need to consider before selecting one:
Complimentary services
If you are new to stock investments, opt for an online broker that offers complimentary services, such as free investment tips, investment-planning software and the latest sock quotes. These services will help you to understand the basics of stock investments. Once you become familiar with the intricacies involved, you can start taking stock investment decisions independently. You also need to assess the speed of the online brokerage websites, especially during the peak hours, to check how long it takes to load a web page and process a transaction. In this way, you can ensure that the site is free from technical problems.
Additional services
If you have other priorities and cannot remain online for long, you need to look for a online broking site that offers additional services, like touch-tone telephone trades, faxing orders and direct order services over a regular phone line. These services are often offered for a fee and it is necessary to go through the service rates and terms and conditions of the different websites, to select the most cost effective online broker. You also need to research on the track records of online brokers to check the quality of services rendered by them.
Commission rates
In order to attract new customers, many online brokers offer low commission rates, often below the prevailing market rates. You need to be careful while selecting such brokers, as the low commission rates do not indicate the quality of services. These brokers may advertise low rates for all services, but the fine print later reveals that only a limited number of services are covered, most of which you are unlikely to use. Always remember to read the terms and conditions before selecting an online brokerage firm.
Security deposit
The amount of security deposit should also be considered, before selecting an online broker. Some charge as high as ten thousand dollars. High security deposits may not necessarily indicate the quality of services offered by the online brokerage firm.
Customer services
Another thing to consider is the response graph of the online brokerage firms. Prior to opening an account with an online broker, you should call the company’s help desk and ask a ‘test’ question to check how long it takes to resolve your query. For example, you could enquire about the interest rates offered by the company on the cash balance in your online broking account. You could e-mail your queries or chat online, to assess the quality of customer service offered by the company.
All these will help you in selecting the most appropriate online broker and the most cost effective services. The online broker takes care of all your transaction requirements, allowing you to concentrate more on selecting the right kind investment options, to maximize your returns.
Complimentary services
If you are new to stock investments, opt for an online broker that offers complimentary services, such as free investment tips, investment-planning software and the latest sock quotes. These services will help you to understand the basics of stock investments. Once you become familiar with the intricacies involved, you can start taking stock investment decisions independently. You also need to assess the speed of the online brokerage websites, especially during the peak hours, to check how long it takes to load a web page and process a transaction. In this way, you can ensure that the site is free from technical problems.
Additional services
If you have other priorities and cannot remain online for long, you need to look for a online broking site that offers additional services, like touch-tone telephone trades, faxing orders and direct order services over a regular phone line. These services are often offered for a fee and it is necessary to go through the service rates and terms and conditions of the different websites, to select the most cost effective online broker. You also need to research on the track records of online brokers to check the quality of services rendered by them.
Commission rates
In order to attract new customers, many online brokers offer low commission rates, often below the prevailing market rates. You need to be careful while selecting such brokers, as the low commission rates do not indicate the quality of services. These brokers may advertise low rates for all services, but the fine print later reveals that only a limited number of services are covered, most of which you are unlikely to use. Always remember to read the terms and conditions before selecting an online brokerage firm.
Security deposit
The amount of security deposit should also be considered, before selecting an online broker. Some charge as high as ten thousand dollars. High security deposits may not necessarily indicate the quality of services offered by the online brokerage firm.
Customer services
Another thing to consider is the response graph of the online brokerage firms. Prior to opening an account with an online broker, you should call the company’s help desk and ask a ‘test’ question to check how long it takes to resolve your query. For example, you could enquire about the interest rates offered by the company on the cash balance in your online broking account. You could e-mail your queries or chat online, to assess the quality of customer service offered by the company.
All these will help you in selecting the most appropriate online broker and the most cost effective services. The online broker takes care of all your transaction requirements, allowing you to concentrate more on selecting the right kind investment options, to maximize your returns.
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