. Share your meals.
Many of you may take your lunch to work or may go home and eat for lunch. But for the millions of people who go out to eat everyday at lunch, there is a great trick to implement in your daily routine. Yes, it is expensive to eat out, but when you do go to lunch make sure you go with your spouse, friend, work buddy or someone who will practice the art of sharing a meal.
Here's what you do. Both of you should order water. Then, select a meal and share it. Ask for a second plate. You will save a bundle. I am going to break down some numbers for you:
TRUE LIFE EXAMPLE:
My wife and I went out to eat for lunch a few days ago to a great Chinese restaurant. We ordered:
- 2 Soft Drinks - $4
- 2 Meals - $13
- Tip - $3
- Total - $20.00
A couple of days later we decided to experiment at the same exact restaurant, but since we both had food left from the other day we decided to share a dinner portion as opposed to two lunch portions, and we ordered water to drink. This was the result:
- 2 Waters - $0
- 1 Meal - $9
- Tip - $1.50
- Total - $10.50
So, we both had plenty of food to eat, we did not overfill ourselves, and we saved a total of $9.50.
Now, let's create a hypothetical situation and say that we changed our habits every day to this method for at least one meal per day, for 50 weeks per year, 5 days per week.
That is 250 days at a savings of $9.50 per day, resulting in a GRAND TOTAL YEARLY SAVINGS OF: $2,375.00
Now, go check out my great personal blog for more creative tips on saving money and eliminating debt. Oh yeah, I also have a FREE 21 Page e-book you can download on how to get out of debt and build wealth over time. It is awesome and free!
Justin V. Cecil, MBA
Debt Freedom and Personal Finance Fanatic.
MY PERSONAL BLOG: http://www.PeskyDebt.net/
Article Source: http://EzineArticles.com/?expert=Justin_Cecil
Justin Cecil - EzineArticles Expert Author
Banks Vs Internet Banking
With the internet in our midst, people are given the convenience of doing a variety of financial transactions online whether at home, in the office or even while on the go. This advanced and phenomenal technological innovation has indeed made life easier for many people including professionals, businessmen, housewives and students. However, this does not necessarily lead to the end of the existence of the brick-and-mortar banks. The standard banks will always be there as there are still consumers who opt to transact in a real bank where they feel most secure and comfortable.
The traditional banks and banks that have gone online have their respective advantages and disadvantages. It's really up to the consumer to choose which type of banking service to use. What matters is you know your financial needs, you keep an open mind on the latest trends in the banking industry and learn about them if possible. You may be loyal to your standard bank but who knows, you may also need to use the online banking service one day for an urgent transaction when you're pressed for time or unable to go out for health reasons.
Standard banking
Conventional banks are those that still use the paper and pen in dealing with different financial transactions. The reality today, though, is that many have gone online as well introducing internet-only products to compete with the purely online banks. While these traditional banks cater mostly to the old customers, experts say they should also keep up with the trend and cater to the younger, internet-savvy customers if they wish to attract more clients.
Security and personal touch are major considerations for people opting to use the traditional banks. Most of them would say having human contact makes them feel comfortable when banking. Some feel secure when they deposit cash via a real teller.
Online banking
Banking on the internet is very much the same as when you do transactions in a real bank. The only difference is that you're using a computer instead of a paper or phone in accessing your account and information, making payments and reconciling statements. There's no need to go to a local branch office as you can accomplish various financial tasks in the convenience of your home or office in a few clicks.
One major advantage of internet banking is its being cost effective. Some banks charge lesser fees if you use their online banking services. Also, since you don't need to commute or drive to a local branch, you save on money and gas. Additionally, banks are able to offer more products and services as they don't have the overhead expenses such as the need to pay tellers.
For busy people such as frequent travelers, professionals and businessmen, the online banking option is very ideal. As these people need to keep track of their finances and other urgent matters even while in other places or abroad, they can still gain access to their accounts via the internet.
Online banking is projected to expand by 55 percent to 72 million households by 2011, according to a report by Forrester Research. The target users are the so-called Generation Y or those born in the late 1970s.
And so, with these two options available to consumers today, it's easy to make a choice where banking is concerned and perhaps even better if you use both.
Learn more about the advantages of internet banking by visiting http://www.webinternetbanking.com.
Article Source: http://EzineArticles.com/?expert=Gloria_Smith
The traditional banks and banks that have gone online have their respective advantages and disadvantages. It's really up to the consumer to choose which type of banking service to use. What matters is you know your financial needs, you keep an open mind on the latest trends in the banking industry and learn about them if possible. You may be loyal to your standard bank but who knows, you may also need to use the online banking service one day for an urgent transaction when you're pressed for time or unable to go out for health reasons.
Standard banking
Conventional banks are those that still use the paper and pen in dealing with different financial transactions. The reality today, though, is that many have gone online as well introducing internet-only products to compete with the purely online banks. While these traditional banks cater mostly to the old customers, experts say they should also keep up with the trend and cater to the younger, internet-savvy customers if they wish to attract more clients.
Security and personal touch are major considerations for people opting to use the traditional banks. Most of them would say having human contact makes them feel comfortable when banking. Some feel secure when they deposit cash via a real teller.
Online banking
Banking on the internet is very much the same as when you do transactions in a real bank. The only difference is that you're using a computer instead of a paper or phone in accessing your account and information, making payments and reconciling statements. There's no need to go to a local branch office as you can accomplish various financial tasks in the convenience of your home or office in a few clicks.
One major advantage of internet banking is its being cost effective. Some banks charge lesser fees if you use their online banking services. Also, since you don't need to commute or drive to a local branch, you save on money and gas. Additionally, banks are able to offer more products and services as they don't have the overhead expenses such as the need to pay tellers.
For busy people such as frequent travelers, professionals and businessmen, the online banking option is very ideal. As these people need to keep track of their finances and other urgent matters even while in other places or abroad, they can still gain access to their accounts via the internet.
Online banking is projected to expand by 55 percent to 72 million households by 2011, according to a report by Forrester Research. The target users are the so-called Generation Y or those born in the late 1970s.
And so, with these two options available to consumers today, it's easy to make a choice where banking is concerned and perhaps even better if you use both.
Learn more about the advantages of internet banking by visiting http://www.webinternetbanking.com.
Article Source: http://EzineArticles.com/?expert=Gloria_Smith
Finding the Best Current Accounts
When opening your first current account, it's easy to opt for the same account your parents have. Or if you are heading off to university and opening your first current account you may choose the one that offers the best perks: such as a free five-year Young Persons Railcard, which gives you one-third off rail travel. Few people give any more thought to it than that.
But seeing that a current account fulfils such a crucial role in your finances because most of your cash flows through it at some stage, it's worth thinking about what you want from it before signing up.
Some banks pay extremely poor rates of interest on current accounts and charge extortionate rates of interest on overdrafts, yet those offering the worst deals also have the largest number of customers.
The 'big four' - Barclays, HSBC, Lloyds TSB, and NatWest - all pay 0.1 per cent interest on balances (although Lloyds TSB also has an account paying a higher rate of interest as long as you pay in a certain amount each month). Other banks pay more than 30 times this amount of interest.
Overdraft Facilities
As well as providing you with a convenient home for your money, most current accounts offer so called overdraft facilities. This means you can use you account to borrow money from the bank.
There are two types of overdraft - the 'authorised' overdraft where you agree with the bank a set limit on any borrowings and the 'unauthorised' overdraft where you slip into the red without first telling your bank or you exceed your authorised overdraft limit. Charges on both types of overdraft are high but especially so on unauthorised overdrafts - they are best avoided.
The big four also charge around 16-18 per cent on authorised overdrafts (although Barclays has some packaged accounts with 9.9 per cent overdrafts). But you can get an overdraft rate of under 8 per cent if you shop around. Yet despite this, some 70 per cent of all current accounts remain with one of the big four banks.
No bank or building society offers the best deal on every single product. One bank may have a fantastic mortgage range but offer a low interest rate on its current accounts. Product providers specialise in certain areas, offering one or two really attractive deals to pull in the punters. Other customers end up paying for this great deal - usually those stuck with an uncompetitive current account.
Check for an introductory offer. Some banks pay a lump sum or charge 0 per cent on overdrafts for a limited period when you open an account. Find out whether you qualify for preferential rates on other products offered by the bank, such as insurance or personal loans.
When comparing personal finance institutions, discover what other services are on offer, such as the ability to buy or sell shares or free financial advice. If you're keen on being green, determine whether you can get an ethical banking account, which are provided by socially responsible banks that don't invest in companies involved in tobacco, gaming, gambling, or pornography.
Here, on our website, you will find accurate information on credit cards, loans, insurance, current account and mortgage deals for efficient personal finance management.
Article Source: http://EzineArticles.com/?expert=Liza_Mathers
But seeing that a current account fulfils such a crucial role in your finances because most of your cash flows through it at some stage, it's worth thinking about what you want from it before signing up.
Some banks pay extremely poor rates of interest on current accounts and charge extortionate rates of interest on overdrafts, yet those offering the worst deals also have the largest number of customers.
The 'big four' - Barclays, HSBC, Lloyds TSB, and NatWest - all pay 0.1 per cent interest on balances (although Lloyds TSB also has an account paying a higher rate of interest as long as you pay in a certain amount each month). Other banks pay more than 30 times this amount of interest.
Overdraft Facilities
As well as providing you with a convenient home for your money, most current accounts offer so called overdraft facilities. This means you can use you account to borrow money from the bank.
There are two types of overdraft - the 'authorised' overdraft where you agree with the bank a set limit on any borrowings and the 'unauthorised' overdraft where you slip into the red without first telling your bank or you exceed your authorised overdraft limit. Charges on both types of overdraft are high but especially so on unauthorised overdrafts - they are best avoided.
The big four also charge around 16-18 per cent on authorised overdrafts (although Barclays has some packaged accounts with 9.9 per cent overdrafts). But you can get an overdraft rate of under 8 per cent if you shop around. Yet despite this, some 70 per cent of all current accounts remain with one of the big four banks.
No bank or building society offers the best deal on every single product. One bank may have a fantastic mortgage range but offer a low interest rate on its current accounts. Product providers specialise in certain areas, offering one or two really attractive deals to pull in the punters. Other customers end up paying for this great deal - usually those stuck with an uncompetitive current account.
Check for an introductory offer. Some banks pay a lump sum or charge 0 per cent on overdrafts for a limited period when you open an account. Find out whether you qualify for preferential rates on other products offered by the bank, such as insurance or personal loans.
When comparing personal finance institutions, discover what other services are on offer, such as the ability to buy or sell shares or free financial advice. If you're keen on being green, determine whether you can get an ethical banking account, which are provided by socially responsible banks that don't invest in companies involved in tobacco, gaming, gambling, or pornography.
Here, on our website, you will find accurate information on credit cards, loans, insurance, current account and mortgage deals for efficient personal finance management.
Article Source: http://EzineArticles.com/?expert=Liza_Mathers
Gaining Access to Your Current Account
Having money sitting in your current account is all well and good, but you need to be able to get to it. Fortunately, modern banking methods offer you a multitude of ways to access your dough, from stepping into a solid building and getting money from a live person to choosing the virtual route of a standalone Internet bank (keep in mind that the money is all too real).
In the following sections, we take you through the various access methods and highlight points to consider when choosing a current account to meet your individual needs.
Going automated with ATMs
Bank branch ATMs now offer free shared access to consumers' accounts, so you don't have to pay if you use another bank's ATM to withdraw cash.
You should check the maximum amount of cash you can withdraw from an ATM in a single day. This is usually around £300, subject to available funds or an arranged overdraft, but it can vary. If you are likely to deposit cash or cheques into your account, find out whether you can do this via your bank's ATMs to avoid queuing for hours in your local branch.
Scouting locations
Most current accounts offer a cheque book and cheque guarantee card (which often doubles up as a debit card). However, many people no longer pay by cheque, so there are a number of current account providers - usually online - who don't offer a cheque book (in exchange, you might get a slightly higher rate of interest on balances).
If you do want the option of paying by cheque, make sure the account you sign up for offers this. Check what limit is on the cheque guarantee card - it may be as low as £50, although some accounts go as high as £250.
Banking by phone
Find out whether the bank has a free or local-rate number for telephone banking and what services you can access by phone. This could make a difference if you contact your bank on a regular basis.
Clicking through the Internet
The growth of Internet banking has been phenomenal. A number of high-street banks are behind the various Internet banks, although the latter are run as standalone operations. So, for example, Halifax owns Intelligent Finance, Abbey owns Cahoot, and insurer Prudential owns Egg.
Standalone Internet banks offer better rates of interest on balances and overdrafts than high-street banks. They can do this because they have lower overheads (no branches). Instead, you get 24-hour access, 365 days a year. But the accounts on offer are more limited than on the high street and there are times when you might want to speak to someone face to face. With many standalone Internet banks you have to rely on the phone or email, which doesn't suit everyone.
You won't get a monthly statement in the post either: instead, you'll be able to access an electronic statement online. If you really want a paper statement for your records, print this off and file it.
Weighing balances
Many banks require only £1 to open a current account, but some providers insist that you deposit a minimum amount of cash each month, or that your balance doesn't dip below a set amount. If you don't have much cash to spare, steer clear of such accounts because if your balance dips below, say, £250 you may forfeit your interest. Find out whether there are any penalties for not maintaining a minimum balance before signing up.
Accruing interest
If your current account is usually in the black, it's sensible to opt for one paying a reasonable rate of interest - 3 per cent or above - to maximise your returns. However, these accounts often stipulate a minimum level of funding required per month, so do look carefully at the terms.
Terms and conditions
If there is a chance that you might go overdrawn, check what the charges are for doing so. Overdraft rates vary significantly between current account providers, so shop around for the lowest one if you need an overdraft and inform your bank before going overdrawn. Unauthorised personal finance overdrafts are far more expensive than authorised ones.
It's worth finding out how much you can go overdrawn by if you may need more than a few hundred pounds. Ask whether you can go overdrawn by a certain amount without having to notify your bank beforehand and not have to pay over the odds for this.
Here, on our website, you will find accurate information on credit cards, current accounts, loans, insurance and mortgage deals for efficient personal finance management.
Article Source: http://EzineArticles.com/?expert=Liza_Mathers
In the following sections, we take you through the various access methods and highlight points to consider when choosing a current account to meet your individual needs.
Going automated with ATMs
Bank branch ATMs now offer free shared access to consumers' accounts, so you don't have to pay if you use another bank's ATM to withdraw cash.
You should check the maximum amount of cash you can withdraw from an ATM in a single day. This is usually around £300, subject to available funds or an arranged overdraft, but it can vary. If you are likely to deposit cash or cheques into your account, find out whether you can do this via your bank's ATMs to avoid queuing for hours in your local branch.
Scouting locations
Most current accounts offer a cheque book and cheque guarantee card (which often doubles up as a debit card). However, many people no longer pay by cheque, so there are a number of current account providers - usually online - who don't offer a cheque book (in exchange, you might get a slightly higher rate of interest on balances).
If you do want the option of paying by cheque, make sure the account you sign up for offers this. Check what limit is on the cheque guarantee card - it may be as low as £50, although some accounts go as high as £250.
Banking by phone
Find out whether the bank has a free or local-rate number for telephone banking and what services you can access by phone. This could make a difference if you contact your bank on a regular basis.
Clicking through the Internet
The growth of Internet banking has been phenomenal. A number of high-street banks are behind the various Internet banks, although the latter are run as standalone operations. So, for example, Halifax owns Intelligent Finance, Abbey owns Cahoot, and insurer Prudential owns Egg.
Standalone Internet banks offer better rates of interest on balances and overdrafts than high-street banks. They can do this because they have lower overheads (no branches). Instead, you get 24-hour access, 365 days a year. But the accounts on offer are more limited than on the high street and there are times when you might want to speak to someone face to face. With many standalone Internet banks you have to rely on the phone or email, which doesn't suit everyone.
You won't get a monthly statement in the post either: instead, you'll be able to access an electronic statement online. If you really want a paper statement for your records, print this off and file it.
Weighing balances
Many banks require only £1 to open a current account, but some providers insist that you deposit a minimum amount of cash each month, or that your balance doesn't dip below a set amount. If you don't have much cash to spare, steer clear of such accounts because if your balance dips below, say, £250 you may forfeit your interest. Find out whether there are any penalties for not maintaining a minimum balance before signing up.
Accruing interest
If your current account is usually in the black, it's sensible to opt for one paying a reasonable rate of interest - 3 per cent or above - to maximise your returns. However, these accounts often stipulate a minimum level of funding required per month, so do look carefully at the terms.
Terms and conditions
If there is a chance that you might go overdrawn, check what the charges are for doing so. Overdraft rates vary significantly between current account providers, so shop around for the lowest one if you need an overdraft and inform your bank before going overdrawn. Unauthorised personal finance overdrafts are far more expensive than authorised ones.
It's worth finding out how much you can go overdrawn by if you may need more than a few hundred pounds. Ask whether you can go overdrawn by a certain amount without having to notify your bank beforehand and not have to pay over the odds for this.
Here, on our website, you will find accurate information on credit cards, current accounts, loans, insurance and mortgage deals for efficient personal finance management.
Article Source: http://EzineArticles.com/?expert=Liza_Mathers
Personal Financial Software – To use it or not?
If you are reading this, then you obviously have access to the Internet. And, more than likely, a PC at your home or work. These two requirements are the basis for using personal financial software. Chances are high that you have seen ads for personal finance software. But, should you use this software to help perform the most basic of personal finance tasks?
In our culture instant access to information and ease of information reigns supreme. Anything that is available to make life easier and more convenient is considered chic. Not to be outdone, personal finance software fits this mold very well. And for good reason. Ease of use, error protection and a myriad of features make this a must for everyone. Use it and be better because of it. The ability to categorize expenses and organize your current and savings accounts is worth the time, money and effort.
You have two options available. First, you can purchase software to load onto your PC. Or you can access a site via the Internet that will allow you to perform your personal finance activities there. The difference is that with software on your PC, you have the actual information on your hard drive. If your Internet connection goes down for some reason, you still have access to your data. But, then the down side here is that if your hard drive crashes, you can lose it all unless you have a backup. Then, even if you do have a backup, how long would it take to get your PC up and running for you to be able to access the data once again?
Online personal finance providers give access to your stored data from any PC that can get to the Internet. That gives you options. If you travel to your mother’s, but do not have a laptop to take with you and you find you need to check your balance, just log on at her house. But this can also work against you. If there is no Internet access, there is no viewing or changing data.
You need to be aware of these differences and make the choice between the two as to which option would best fit your needs. If you choose software for your PC, you will enjoy many features. At this point, the Internet sites offering this service are still in their infancy and do not have as many features and benefits.
Whichever you choose, your personal finance tasks will be easier and more accurate. Do not delay – get in on this now.
In our culture instant access to information and ease of information reigns supreme. Anything that is available to make life easier and more convenient is considered chic. Not to be outdone, personal finance software fits this mold very well. And for good reason. Ease of use, error protection and a myriad of features make this a must for everyone. Use it and be better because of it. The ability to categorize expenses and organize your current and savings accounts is worth the time, money and effort.
You have two options available. First, you can purchase software to load onto your PC. Or you can access a site via the Internet that will allow you to perform your personal finance activities there. The difference is that with software on your PC, you have the actual information on your hard drive. If your Internet connection goes down for some reason, you still have access to your data. But, then the down side here is that if your hard drive crashes, you can lose it all unless you have a backup. Then, even if you do have a backup, how long would it take to get your PC up and running for you to be able to access the data once again?
Online personal finance providers give access to your stored data from any PC that can get to the Internet. That gives you options. If you travel to your mother’s, but do not have a laptop to take with you and you find you need to check your balance, just log on at her house. But this can also work against you. If there is no Internet access, there is no viewing or changing data.
You need to be aware of these differences and make the choice between the two as to which option would best fit your needs. If you choose software for your PC, you will enjoy many features. At this point, the Internet sites offering this service are still in their infancy and do not have as many features and benefits.
Whichever you choose, your personal finance tasks will be easier and more accurate. Do not delay – get in on this now.
Personal finance briefs
Fuel savings add up with car maintenance
Barack Obama got ribbed by John McCain when he advised drivers to fill their tires, but the Car Care Council, a nonprofit funded by an auto trade group, agrees with the Democrat.
Car care, the group says, can save a lot of fuel and money, based on $3.96 a gallon gas:
• Once a month, check that your tires are properly inflated. Gas savings: up to 12 cents a gallon. Boost in fuel economy: up to 3 percent.
• Replace clogged, dirty air filters. Check them every 3,000 miles. Gas savings: up to 40 cents a gallon. Boost in fuel economy: up to 10 percent.
• Use the right grade of motor oil, and change it regularly. Gas savings: less than 1 cent a gallon. Boost in fuel economy: 1 to 2 percent.
• Tune up your engine, about once every 30,000 to 100,000 miles, depending on the car. Gas savings: 16 cents a gallon. Boost in fuel economy: 4 percent. The group also recommends keeping your gas cap on tight and replacing spark plugs.
FIRED AND REHIRED
Downsized and out of a job can be a rebirth
So you got downsized. It's happening a lot this year -- 579,260 job cuts reported so far, according to outplacement consultants Challenger Gray & Christmas Inc. -- but experts say you shouldn't see it as career death. In fact, it can be a rebirth.
"A majority of people end up telling you it's the best thing that ever happened to them," said Marc Cenedella, CEO of jobs site TheLadders.com.
How to move on:
• Get rid of the negativity: Write an angry letter to your boss, then rip it up. Take a vacation. Get relaxed and refreshed so you can be positive in interviews later.
• Make a plan: Interested in a new field? Here's your chance. Investigate retraining programs, take classes. "Reassess what you want to do," said Tony Santora, senior executive at Right Management, an employment consultancy. Take note of your strengths.
• Network, network, network. "Over 50 percent of the jobs out there are found through networking," Santora said. Reach out to friends, family, former colleagues. Use online sites like LinkedIn.com. Call up trusted recruiters.
Personal finance literacy worsens amongst British adults
Despite personal finance issues taking centre stage over the past 12 months, the latest research from Abbey Banking has found that financial literacy amongst British adults has in fact declined since this time last year...
In August 2007 Abbey set a simple GCSE level personal finance exam amongst a representative group of adults, and found that one-in-ten (5.9 million) would fail to achieve the 40 per cent mark needed to achieve grade GCSE grade C (or O'Level pass). One year on and a repeat of the exercise shows that the number of adults failing to achieve a grade C has increased by 1.2 million adults - to one-in-seven.
At the top end of the scale one-in-four adults (25 per cent) matched last year's results by scoring an A*, but straight As were down on last year by 2 per cent - to 28 per cent. Twenty two per cent were on for a respectable B (up one percent from last year), but C grades fell year on year from 13 to 12 per cent.
Government plans to introduce personal finance skills into the Maths GCSE should certainly be welcomed by 18-24 year olds, since they slipped from an average score of 56 per cent in 2007 to 53 per cent in 2008.
The top wrong answers were:
88 per cent didn't know that they get six weeks to pay back a credit card before it accrues interest. (86 per cent last year)
38 per cent failed to explain that negative equity is where your mortgage is larger than the value of your house. Better than last year when 47 per cent got the answer wrong.
25 per cent were unaware that failure to pay a secured loan meant that your house could be sold to pay for the loan, up 2 per cent on last year. Five per cent thought that it involved selling off the contents of your house.
18 per cent don t know what hire purchase means, against 12 per cent last year.
Why is Saving So Important?
The trick to saving is to make it your number one priority when allocating your cash outflows.
When I first start working with a client on wealth creation, I always start them saving 10% of their income regardless of their current financial position. Invariably, the client has a difficult time with this. Unless they are a "born saver" or were conditioned to saving from an early age, the client views this strategy as either drudgery or, worse, it appears that they have less money for themselves.
The truth is: savings will give you more money in the long run. If you want to become wealthy you must start thinking long-term not short-term. Generally, most people waste more than 10% of their income every week on things they don't really need. By eliminating wastage and extravagance from our lives, we can find that extra 10% to save.
Most of my middle-income clients have been able to trim an easy $50 to $100 per week off their supermarket bill alone by simply ensuring that they only buy what they need and focusing on buying value for money. This does not mean you have to buy inferior products. It means: buy value-for-money. Consumer research organisations have proven that the most expensive products are not necessary the best.
Ultimately you will feel a major sense of accomplishment watching your savings grow. Having savings in the bank provides a strong feeling of security and you will never feel poor. You can finally relax and know that the future is being taken care of.
Some wealth strategies may advocate paying off all your debts first and then start saving later. I disagree. These systems usually put you on a very stringent budget. To me, this is like going on a strict diet. It is too harsh for most people in the long-term and, more often than not, doomed for failure. I prefer to start everyone off by saving 10% of their income. It gets then into a good habit from the start. The 10% savings should always be allocated first. If you make it your number one priority, you are well on the way to conquering your financial problems and becoming wealthy.
A soon as any income is received, 10% should be deposited into a separate savings account that is easy to deposit to, yet difficult to withdraw from. Do not attach this account to your ATM card. This money should be left to accrue over time and then converted into investments. It is not to be used for holidays or buying large purchases such as furniture. A separate savings account can be used for the latter.
I tell my clients with children that the most important thing you can teach your children about money is to save 10%. If you start them young and teach them, in the same way as you teach them to brush their teeth everyday, they will be millionaires by the time they are 30 or 40 years old - maybe even sooner. It is as simple as that. Start them saving as soon as they start receiving pocket money.
When I first start working with a client on wealth creation, I always start them saving 10% of their income regardless of their current financial position. Invariably, the client has a difficult time with this. Unless they are a "born saver" or were conditioned to saving from an early age, the client views this strategy as either drudgery or, worse, it appears that they have less money for themselves.
The truth is: savings will give you more money in the long run. If you want to become wealthy you must start thinking long-term not short-term. Generally, most people waste more than 10% of their income every week on things they don't really need. By eliminating wastage and extravagance from our lives, we can find that extra 10% to save.
Most of my middle-income clients have been able to trim an easy $50 to $100 per week off their supermarket bill alone by simply ensuring that they only buy what they need and focusing on buying value for money. This does not mean you have to buy inferior products. It means: buy value-for-money. Consumer research organisations have proven that the most expensive products are not necessary the best.
Ultimately you will feel a major sense of accomplishment watching your savings grow. Having savings in the bank provides a strong feeling of security and you will never feel poor. You can finally relax and know that the future is being taken care of.
Some wealth strategies may advocate paying off all your debts first and then start saving later. I disagree. These systems usually put you on a very stringent budget. To me, this is like going on a strict diet. It is too harsh for most people in the long-term and, more often than not, doomed for failure. I prefer to start everyone off by saving 10% of their income. It gets then into a good habit from the start. The 10% savings should always be allocated first. If you make it your number one priority, you are well on the way to conquering your financial problems and becoming wealthy.
A soon as any income is received, 10% should be deposited into a separate savings account that is easy to deposit to, yet difficult to withdraw from. Do not attach this account to your ATM card. This money should be left to accrue over time and then converted into investments. It is not to be used for holidays or buying large purchases such as furniture. A separate savings account can be used for the latter.
I tell my clients with children that the most important thing you can teach your children about money is to save 10%. If you start them young and teach them, in the same way as you teach them to brush their teeth everyday, they will be millionaires by the time they are 30 or 40 years old - maybe even sooner. It is as simple as that. Start them saving as soon as they start receiving pocket money.
Protect Yourself From Bank Fees
Do you use a checking account? You may be paying too much for the use of a checking account and could be saving bundles by switching or eliminating the use of a bank checking account altogether.
If you want to save money by using a checking account you need to use it wisely. Banks are happy to have you deposit money for short term use, but they plan on making money through fees somehow. What type of fees can you encounter simply by using a checking account?
Personal Finance Problem: ATM fees
Most people have an ATM card where they can retrieve money from their checking account funds any time of day. But did you know when you pull out a mere $20 you could be paying over 5% in fees?
Most bank ATMs will charge you an average of $1.25 for the use of their ATM console. To pull out $20 cash that's a 6.25% fee on your funds. For $40 cash it's still a 3.12% fee that you could put to better use.
At the worse end, if you choose to retrieve funds out of your checking account from an ATM owned by another bank you could be charged up to $3 for that little bit of cash. Ouch!
The Personal Finance Solution
• Don't use ATMs unless you absolutely have to. For the price you pay to access your checking account, it's not worth it.
• Use a bank that does not charge ATM fees. Some banks do not charge an ATM fee as long as you use one of their ATMs. National banks like Bank of America or Wells Fargo who have ATMs in cities all over the country may give you this deal. Take advantage of it.
• Use a debit card. Banks today offer to issue a Debit Card to access your checking account funds. Most retail stores will accept debit cards because the transaction is instantaneous out of your checking account and they get their money fast. The best part? No fees! Use the debit card whenever you can, but be sure to keep tabs on your checking account balance.
Personal Finance Problem: Check printing fees
When you order checks, especially ones with fancy options and decorations, you pay exorbitant fees for the price of printing. For each check you write you could be paying .10 cents to .25 cents per check. That adds up over $6 for the use of a book of checks.
The Personal Finance Solution
Use banks that offer actual "Free" checking with no check printing charges. Or, simply forgo the use of checks and use a debit card for retail purchases and online banking to pay your bills.
Personal Finance Problem: Overdraft fees
This is the big one. Always - ALWAYS - keep your checking account in balance. If you pay by check or by debit card and overdraft more than is in the account, you could be slapped with a hefty fee up to $40. That's just on the bank side. The retail store may have their own overdraft fee on top of your bank's.
The Personal Finance Solution
Use overdraft protection. Most banks will allow you to have overdraft protection with a savings account. But that means you must have money in that savings account! Keep it stocked with enough to get you out of a jam. A $40 fee on a $5 overdraft can really knock you out financial if it occurs over and over.
How to Find a Financial Advisor!
How to make your choice
We all know by now the types of financial advisors existing today; it's essential to decide which type to go for first. There are financial advisors and independent financial advisors; the first one functions as a part of a firm or a similar financial institution while the other operates like a freelancer. That makes sure one thing; with an independent financial advisor, your options are more. A financial advisor shall thus providefinancial advice- which is correct - but then again, financial advice is a very broad term requiring fine-tuning.
To be precise, financial advices are as many as the number of financial products and strategies available in the market; there also remains a question on their individual suitability. A financial advisor is the one who matches them up and therefore; it's a specialized service that you require for better results.
Let's see what can be achieved from an independent financial advisor. An IFA doesn't hold any contract whereas others remain bound by contracts with financial institutions (e.g. life insurance or mortgage companies) or work directly under the company's payroll. Therefore, why a contract bound/employed financial advisor may suggest going for a financial product sold by the same financial company - maybe that's not meant to suit you completely - an independent financial advisor shall select a plan tailor-made to your needs if all other readily-available financial packages fall short. So now that you've known the difference, it's time to learn how to choose the best.
Questions to ask
The regulatory body of financial services (FSA or Financial Services Authority) has put up certain requirements for any person willing to work as an IFA. This is something you need to enquire about when you are on the process of finding a suitable independent financial advisor; for those working under some financial institution, their credibility can be verified with the employing company. A Certificate in Financial Planning is the bare minimum; if there are advanced qualifications showing, it is all the better. These qualifications are specialization based, for example, an IFA dealing in mortgages must have a Mortgage Advice Qualification (MAQ) or a certification from the Association of the Pensions Management Institute (APMI) and so on. Just remember that the field an IFA is providing his services for must tally with the degrees he/she has earned so far. Ask your questions as you feel, but the abovementioned points must stay included in the answers you receive. And always remember; don't hesitate to take any free quote that's available. It helps to gain some idea on who's more correct to address your needs.
What to expect next
Be prepared to reveal your entire financial history to the chosen financial advisor, from your most silly impulse spending to your long-term financial goals and everything that's influencing your current spending habits. The financial advisor shall then choose for you a package, but it's always better to get it verified from another source.
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