How to Avoid Estate Planning Mistakes Before you Pass on

May 18, 2013 in Personal Finance with 0 Comments

It was probably Jim Morrison, the infamous lead singer of the 1970’s rock group The Doors, who put it best “no one here gets out alive”. What he was referring to is that, no matter who you are, where you come from or how rich you happen to be, inevitably every one of us is going to pass on one day. Seeing as it’s inevitable, one of the best things that a person can do, especially if they have a lot of money, investments, land, homes and so forth, is to make sure that their estate planning is thoroughly taken care of.

Frankly, even if a person doesn’t have all that much money but has a home that’s paid off and a few bucks in a savings account, estate planning is something that is not only important to take care of before they pass but also will make for much fewer problems for loved ones who are left behind. With that in mind we put together a blog about some of the things that you should do as far as estate planning before you pass and how to avoid common mistakes. We know it’s not exactly an uplifting subject but, if you take care of it now, believe us when we say that your loved ones will be much better off after you’re gone. Enjoy.

Unless you’re actually a certified accountant or a practicing estate planner the first thing you’re going to want to do is contact a professional. Keep in mind that even professionals can make mistakes and research your options thoroughly. If you have knowledge of someone in your family that passed in the last few years and used an estate planner you may want to contact their family and find out who that person is. Remember, any mistakes that your estate planner makes probably won’t be discovered until after you’re gone, leaving your family to clean up the mess.

Here are a couple of examples: In Chicago there is a lawsuit underway due to the advice that an estate planning attorney gave his very rich client. This attorney suggested a ‘60 day rollover’ to be used with what would be an inherited IRA but, unbeknownst to the client, this is a severe no-no with the IRS. It only became clear after his death and so now his family is embroiled in a ridiculously large and costly lawsuit.

In Clearwater Florida a client was told that she should create a trust using a ‘fee simple’ method so that, if she were to pass away, her minor daughter would get the bulk of her inheritance when she became an adult. The problem; with the fee simple plan, if she passed away before her daughter was an adult her daughter’s new guardian, her financially irresponsible ex-husband, would have received a check for practically the entire amount of the residual balance left in her trust, an obviously bad idea that only came to light six years after the initial estate planner set things up.

When setting up your estate planning it is a good idea to take into account anything that could possibly happen and make sure that you have planned for as many contingencies as possible. For example, what would happen if the mother were to die first? How about the father? What would the situation be if both parents were to die at the same time? These aren’t pleasant things to have to contemplate but, when you consider that unpleasant things happen every day, it’s better to talk about them and plan for them before they happen.

Communication between family members that have been left behind is also vitally important. A great example of this is a family in Atlanta Georgia who, after their father had a massive stroke, moved him out of his house, sold the place, shut down all of his banking and checking accounts and had him live in their home until he passed away seven months later. It was only then, when going through his personal things and paperwork, that they found a $1 million life insurance policy. The problem; since the policy was being automatically paid for out of his bank account, and since they had shut down that account, the insurance policy had been canceled and voided due to non-payment and was worth nothing. Bye-bye $1 Million dollars.

Even for people that plan their estate and their affairs quite well and define who gets all of their major assets, there are times when seemingly non-valuable items will be fought over by surviving family members. It is for this reason, especially if a person has lots of tchotchkes, memorabilia or other collectibles, that these things are also put into the estate planning paperwork and given to specific family members.

At the end of the day the best thing that you can do for your family, especially if you have a large amount of assets, investments and money, is to thoroughly plan where it’s all going to go before you go. In this way not only will you have peace of mind while you’re still here but you’ll ensure that your family won’t tear itself apart squabbling over all of the assets you accrued during your life and after you’re gone.

3 Credit Card Do’s and Don’t's

May 14, 2013 in Credit Cards with 0 Comments

This guest post was written by Jason Bushey. Jason is a personal finance blogger and he runs the day to day operations Creditnet.com, an online authority on credit cards.

Credit cards aren’t nearly as terrifying as some consumers have made them out to be. In fact, the best cards actually reward you for your purchases and can save you some serious cash when used responsibly.

That said (and as the horror stories can account for), there are obviously some spending practices to avoid when using a credit card. Some are obvious, others not so much.

With that in mind, here are three do’s and don’t's to consider for credit newbies and veterans alike hoping to make the most of the plastic in their wallets…

Do Keep Your Accounts Active

Did you know that your credit card issuer can close your account due to inactivity? That’s right; after six months to a year of silence on your end you could receive the boot from your credit card company. We’ll get to a few more reasons why this is a bad thing below, but it’s especially detrimental to your credit profile if the account is a particularly old one.

That’s because the longer your credit history, the better you look in the eyes of lenders and creditors. Accounts open for several years add more significance to your score than accounts that are still fairly new. Make a small payment here or there with your old card to keep the account open, and pay it back in full each month so you won’t have to worry about interest rates.

Don’t Carry a Balance

Speaking of interest rates, they’re one of the number one reasons that you really shouldn’t carry a balance if you can help it. A good interest rate on a credit card is 10 percent, and a bad one could be close to 30. No matter what your APR is, it’s additional money that you’re paying a credit card company that ultimately you could avoid.

There’s an old myth that carrying a balance is actually good for your credit score. This simply isn’t true, and carrying too high a balance (more than 30 percent of your total available credit line) will have affect your score negatively.

If you’re carrying a balance and it’s making it hard to pay down your debt to zero, here’s a tip…

Do Consider Transferring Your Balance

0 interest credit cards applied to balance transfers are as helpful a tool as any when it comes to paying down your debt. The process is pretty simple; apply for a card with a zero-interest period applied to balance transfers, receive your card in the mail, contact your new card issuer and tell them you want to transfer a debt, give them the required information and voila – you’ve just successfully transferred your balance!

You of course still owe the old balance on your card, but the difference is that you can now pay it back interest-free. You’ll be shocked at the dent you can put in your credit card balance once you start paying it down at zero interest. As for that old card? Well, here’s a tip…

Don’t Cancel Old Credit Cards

So you’ve moved on to a sexy new credit card with a lower interest rate and more rewards. Time to cut that old card up and cancel the account, right?

Wrong!

Like we mentioned before, old cards still serve a purpose when it comes to maintaining and improving your credit score. But they also maintain your available credit line. And if you carry a balance and eliminate a good chunk of your available credit (by canceling an old account), the unintended consequence might be a new debt ratio that’s a lot less impressive than it used to be.

Unless you’re paying an exorbitant annual fee each year, there’s rarely a great reason to close an account that’s in perfectly good standing. Again, use it occasionally, pay it off in full and let it build your credit history. The effort is minimal and the gain more than you probably would have imagined.

Do Enroll in Bonus Cash Back

Enrolling sounds high maintenance, but it really isn’t. And if you’re card requires it for bonus cash back opportunities and you skip you, you could be missing out some FREE MONEY.

Sorry for yelling, but it’s true. Cash back cards like Discover it® and Chase Freedom® both offer cardholders the opportunity to earn 5 percent cash back on up to $1,500 in purchases made in categories that rotate each quarter. The only catch is that you have to enroll, which sounds hard but essentially amounts to a click of a mouse or even a text message.

Don’t miss out on free money. Enroll in your credit card’s bonus cash back program, already.

Don’t Apply for a Cash Advance

Finally, there are cash advances. Cash advances are kind of like taking out a payday loan, only with your credit card company. The interest rates on advances are jacked up and often hover between 25 and 30 percent, and there’s usually a 3-to-5 percent fee attached to the advance.

Essentially, these are a terrible idea and you should look elsewhere if you need quick cash. And no, we still don’t mean the EZ Payday Loan  around the block.

So now that you’re armed with do’s and don’t's of credit card use, we hope you’ll think twice about using your credit card for good or bad. When used correctly, the pros of credit cards outweigh the cons, but it’s always helpful to be savvy when swiping. The above tips should help debunk some myths while giving you the information you need to maintain responsible spending practices with your credit card.

Financial Tips for College Students – Part 2

May 10, 2013 in Financial Planning with Comments Off

Welcome back for Part 2 of our money tips for college students 2 Part blog series. If you’re just joining us welcome and if you are returning for more after having read Part 1 welcome back. We have quite a bit more excellent financial advice for you today so let’s jump right in and get started shall we? Enjoy.

While these first few tips may not exactly save you money right away they are certainly worth keeping in mind because they will definitely save you money in the future. One of the first is that you should, at least for the most part, take good care of your health. Yes, we know that college includes frat parties and keggers but that should (hopefully) only occupy about 2% of your time. The rest of the time you should definitely make sure to eat right, brush your teeth and otherwise take care of your body because you’re going to need it for the next 50, 60 or 70 years. (The way science is going maybe even longer.)

Another way to save money is to go to class. Sorry to sound like your parents but, quite frankly, you’re at college to learn and if you skip class too often you’re going to fail classes which is going to cost you money when you inevitably have to retake those same classes a second time. Remember, it’s only in the movies that failing classes and public drunkenness are funny.

Speaking of drunkenness, you’d do well to at least limit the amount of beer, cigarettes and other, ahem, things that cost you money because, quite frankly, vice fueling stuff like this is quite expensive. We have no problem with going out once a week and having a good time and drinking a couple of beers with the gang (and whatever else you might want to indulge in) but if you overdo it you’re going to waste money and waste yourself.

When it comes to buying stuff a question that you should definitely ask yourself, especially if were talking about something that costs more than a couple of dollars, is simply; do I need this? If you think you do that’s fine but we suggest that you hold off on impulse buying and wait a week or two. If, at the end of that time period, you decide that you still need it then go ahead and make your purchase. Truth be told, in many cases you will probably change your mind and in some you might even forget about the purchase completely, a sure sign that you didn’t need it to begin with.

A good bit of advice and something that we would advise any adult to do whether in college or long since finished is to spend less than you earn. Sure, in college you are not making very much but if you can still manage to spend less than you earn you’re going to create a financial habit that will serve you well, well into adulthood. People that spend less than they earn are the same people that, generally speaking, are the most successful at saving for retirement and other important future costs.

If you can do it, starting your own business while you’re in college can be an excellent way to not only make a few extra bucks but to get an idea of what it takes to, well, start your own business. For example, if you have access to a small truck and a couple of your frat buddies you can help people move from one apartment to another. Are you great at making PowerPoint presentations? There is a huge
need for those by other students so why not set up a small side business making them? You can do the same with computers, car repairs and many other services and, if you are any good, word will spread and you may actually graduate college with a business already up and running. That would certainly put you ahead of the crowd don’t you agree?

While you’re in the learning mode you may also consider learning how to invest. Discount brokers like Sharebuilder are an excellent choice and for very small investments you can start learning how to trade.  In 10 years you will definitely look back and thank yourself for taking the time to do it.

That wraps it up for this 2-Part class on money tips for college students. We hope you enjoyed both parts and that, when you have a break between classes, you come back to join us again.  See you then.

Financial Tips for College Students – Part 1

May 1, 2013 in Financial Planning with Comments Off

With summer vacation just around the corner and many college students going back into the job market for a few months we decided it was a great time to put a blog together that would help college students better handle their money. The fact is, with just a little bit of advice and help, personal finance isn’t really that big of a mystery. With that in mind we put together a number of concepts, ideas and advice that we wish we had when we were in college. Enjoy

One of the biggest mistakes that young adults make is, when they finally get out from under mom and dad’s rule, they start spending on all of the things that they weren’t able to spend on before. New clothes, new gadgets and so forth. While this may be enjoyable for a time it can definitely set up a person to have money troubles in the future. Better to seek some financial advice and, if you’ve made the Dean’s list, treat yourself to something but don’t spend everything.

Joining a credit union is an excellent idea. Try to stay away from the ones that are giving away free T-shirts or Frisbees and instead find one in your town that has excellent services and fits your needs as a new saver.

Unless you absolutely, positively need one you might want to stay away from getting your own credit cardin at least for a while longer. A debit card is a much smarter idea and will allow you to have instant access to your money if you need it but won’t let you spend any more than you actually have in the bank.

If you are really keen on getting something, say a new laptop, Xbox or smart phone, you’ll be better off saving for it and paying for it with cash than putting it onto any sort of credit line that the store selling it to you will undoubtedly offer. Keep in mind that they don’t offer these credit lines out of the goodness of their heart but because they realize that most young people won’t pay it off directly and that they will make money in interest fees and possibly late payment fees as well.

Organization and planning will serve you well in the future so start organizing and planning now to keep your finances in order. Both are an important financial skill that you will use frequently as an adult. If you have Quicken on your computer you should also track your spending to make sure that you don’t overdraw any of your bank or credit card accounts (if you have them). This will also help you to see what your spending habits look like and, if they’re not so great, change them before they ruin you financially.

Very few successful adults don’t have a budget to guide them. If you want to be a successful adult as far as finances go you’ll thus obviously need a budget, even if it’s just a simple one. This will help you to not only keep track of your spending but see where your money is going and help you to save more of it than you thought you could.

You’ve probably seen mom and dad putting receipts into shoeboxes and, while this may seem a bit silly, it is actually a great way to keep track of not only what you are spending but also make sure that you are not being overcharged for purchases, even if by accident. Of course you don’t have to go ‘old school’ like mom and dad, especially with the plethora of receipt apps available for your smart phone. Get one of these apps and get rid of the shoeboxes.

As far as campus life is concerned here are a few quick tips on saving money that will help you.

  • Buy used textbooks and, when you’re done with them, sell them back or sell them to another student.
  • Skip going on spring break. Frankly, unless you can afford it it’s a huge expense and there are probably dozens of things that you can do around campus that will be just as much fun and much less costly.
  • Keep your car at home. Unless you live home and commute to campus every day you really don’t need one on most American college campuses. Not having a car will save you a ton of money on gas, maintenance, parking, insurance and so forth. If you need to get around on campus use your feet, a bicycle or find a friend with a car and chip in for gas once and a while.
  • Do you hang out with guys and girls who spend big bucks all the time? If you do, but you don’t have the same access to cash as they do, you’ll be more prone to spend your money and end up much more broke than they are.

We hope that this blog has been a valuable lesson in adult finances. (Yes, we know you’re sick of lessons but this one is important.) Anyway, do yourself a favor and use some of them to hold on to your money, get a handle on real-life finances and get a jumpstart on becoming a successful adult. In a few years, when you’re there, you can come back and thank us.

Have You Ever Considered Forex Trading?

April 29, 2013 in Investing with Comments Off

Foreign exchange trading (forex) by any other name wouldn’t so daunting to the average investor!  There are many different reasons for forex trading in the world, by both private citizens and globalized companies.  There are in fact many reasons that forex trading has become so popular today.  First, consider that it leads to liquidity, and in today’s market cash is king.  Next, think about the geographic footprint.  Every country has a currency it uses to barter, which means just about everyone is a player in the market.  The continuous 24 hour operations also appeal to an investor, it trades everyday except on the weekends.  This alone makes it more accessible than the stock market.

The individual investor needs to take on some form of risk in their lifetime.  Mine for example is investing in mutual funds that deal in the investment of foreign companies.  It is perfectly aligned with my portfolio and retirement goals, yet at the same time large swings in currency valuations can affect my overall portfolio.  This is precisely where forex trading comes in handy.  I know it seems scary and surreal to learn, but there are sites out there where you can learn to trade forex.  Give a shot and try one of the practice accounts, it won’t cost you a dime, but your certain to gain invaluable knowledge.

Large corporations are no stranger to forex trading.  My first job out of college was in the treasury department of a multi-national corporation.  We had operations through the U.K., Europe, and the U.S.  Our financial obligations, as well as investments, were all handled at the corporate office in the United States.  This meant the U.S. dollar was the most readily available form of currency to pay bills with.  That being said, if our plants in Germany needed to make an immediate payment to one of their suppliers then we need to make sure we had a pool of Euro’s to draw upon.  We had cash pooling systems setup for the major currencies, and often used foreign exchange trading as a way to convert our pesos, euros, and USD back and forth.

So as you can see, forex trading is actually a very important tool for just about everyone in the world.  While there is some learning involved, I highly encourage you to give it a try and see what valuable lessons you can take away from it.

Money Management Tips for Budding Entrepreneurs

April 26, 2013 in Investing with 1 Comment

There comes a time in a person’s life when one wants to go ahead and take the risk on starting their own business. Gaining financial stability is something that almost everyone dreams of, and many believe that starting their own business would make this a reality. Many employees save their hard-earned money to make this dream come true.

Not all businesses end up raking in money—this is a fact. Establishing a new venture requires hard work, perseverance, and of course a lot of cash. Managing your own business is far more difficult compared to having a regular 9 to 5 job. It’s a good thing that employees can actually invest on profitable stocks or goods in the market while working fulltime. The only important thing to remember is to invest on reliable markets or companies, to avoid losses that would cost them more. Since the stock market is at an all-time low nowadays, experienced investors find gold and silver investments more profitable and secure. Companies like Bullion Vault allow private investors to access international bullion markets conveniently and securely.

Those who are eager to start their business, however, can use these money management tips from business gurus at {Entrepreneur.com} and Wayne Liew:

You need to have separate bank accounts. One of the biggest mistakes budding entrepreneurs make is they keep their personal and business money in one account. This spells disaster as it could be difficult to tell how much you actually have and how much your business does.

Never mix credit card purchases. When it comes to using “plastic money”, it is imperative to have one credit card for business expenses alone and a separate one for personal use.
According to {Wayne Liew Dot Com}, a new entrepreneur should set realistic financial goals. Setting a goal allows an entrepreneur to track the progress of their business, no matter how big or small it is. It also lets them know where they are currently at and helps them plan their next steps.

Tips to Save Money on all your Health Care Needs – Part 5

April 25, 2013 in Personal Finance with Comments Off

Welcome back for Part 5 of our blog series on tips to save money on your all your health care needs. The first 4 blog articles mainly dealt with a myriad of ways that you could save a few bucks here and there on everything from prescriptions to healthy food and everything in between. This final blog is going to be focused on what your health plan and your insurance covers as well as using preventative care to make sure that you stay healthy and thus save money. Enjoy.

One of the most vital pieces of information that you need when it comes to your health plan is what it does and does not cover. If you don’t know these facts the first thing you need to do is ask your employer for a copy of your evidence of coverage paperwork. This will explain your benefits in detail, the rights that you have and how your plan works. If you have any questions once you get this paperwork you can usually find the customer service phone number of your health plan on your membership card.

Finding a primary care doctor and then using that Dr. whenever you have any health concerns is an excellent way to keep costs down, especially if there’s a chance that you will go out of your network. Indeed, going to a doctor that is out-of-network is akin to going to a grocery store the charges double for everything; in other words, not a great idea.

If you are having health concerns of any type don’t hesitate to talk about those concerns with your primary health care Doctor, even if you think that they might be silly. The fact is, when it comes to your health there are no silly questions. Getting information early and often is the key to preventative healthcare and will not only keep you healthy but could save you a lot of money.

If you need to see a specialist you’re going to need a referral and also prior approval through your insurance carrier. This is sometimes referred to as an ‘authorization’ and, unless you have it, you might end up paying more for office visits and for tests than you would without it.

Another vital task that’s quite easy to take care of is to always have your membership card with you whenever you visit any healthcare provider. As we mentioned earlier the telephone number of your healthcare provider is usually on the back of the card so that if you have any questions you can call them directly.

It goes without saying that you should keep records dutifully of any and all healthcare tasks, appointments, and anything else so that if need be in the future you can refer back to those. This can help you save money by making sure that you aren’t double billed, overbilled or going out of network.

It is also a very good idea to make healthy lifestyle choices including the type of food that you eat, the amount of exercise that you receive and preventative tests that you should have an irregular basis depending on your sex and your age. (More about that below.)

When it comes to saving money on healthcare one of the most important and vital tasks that you have is to use preventative healthcare services and tests. These regular exams and screenings will not keep you healthy per se but, in the event that you do have an underlying problem that you aren’t aware of, you will find out about it early and be able to do something about it before it becomes a large problem. Some of the most important tests are as follows;

  • ·         Blood pressure. This should be checked every time you visit any doctor’s office.
  • ·         Pap smear / cervical cancer screenings. Every three years after a woman reaches the age of 21.
  • ·         Cholesterol / lipid test. For men 35 years of age and up they should be performed every three years.  For women, if there is increased risk of coronary heart disease, this should be performed every three years after the age of 20.
  • ·         Colorectal screening. This should be performed every year after the age of 50.
  • ·         Diabetes screening. If you have a sustained blood pressure greater than 135/80 this should be done once a year.
  • ·         Pregnant women between 24/28 weeks should have gestational diabetes screenings.
  • ·         Mammograms. Beginning at age 40 this should be performed every two years.
  • ·         Osteoporosis screening. For women age 65 and older this should be performed once a year

Tips to Save Money on all your Health Care Needs – Part 4

April 20, 2013 in Personal Finance with Comments Off

Hello and welcome back. This is  the fourth installment of our five-part money-saving tips for your health care needs a blog series. (Try and say that five times fast.) If you have been following the series since the beginning you know that we have really packed some excellent tips and advice into them all, the kind of advice that you can use every day at bring down the costs of your healthcare significantly.  Today’s blog is going to be more of the same so sit back, relax and, as always, enjoy.

  1.         While there are certainly benefits to having a gym membership the simple fact is that, at home with only a basic exercise equipment, there are plenty of ways to get in a workout that will cost much less. Not only that but, when you use free online workouts from certified trainers at the iTunes store or on YouTube or Netflix, you get almost as personalized a training program as you would in person but for a fraction of the cost.
  2.         There are dollars is popping up all over the place and the reason is that people love them. The reason they love them is quite simple to understand; they have dirt cheap stuff. While we will freely admit that some of it is crap the fact is that there are an abundance of great deals on many items. Many health care items like band-aids, cough medicine and aspirin can be purchased dirt cheap.
  3.         If you’re keen on getting exercise but you live in an area of the country where the weather is always agreeable make an inquiry at your local mall to find out when they opened their doors. Many times they will open them early for seniors and anyone else wants to get in some walking without freezing their buns off or in the summer when it’s too hot.
  4.        Cut down on your consumption of meat, including beef, poultry, pork and fish. Simply put, animal protein is expensive. While we are not particularly espousing a vegetarian lifestyle the simple fact is that if you purchase less animal protein you will save money and there are plenty of vegetarian alternatives that will cost a lot less. Even if you cut meat out of your diet for only two or three days out of the week you will still save a significant amount of money.

While we’re on the subject of cutting back on meat consumption we would be remiss if we didn’t remind our dear readers that a diet high in red meat has been to be very detrimental to one’s health. Cutting down on your red meat consumption will thus save you money now and also in the future on your health-care costs.

  1.         Many fruits and vegetables these days are coming pre-packaged. While this is quite convenient the extra cost that you pay for said convenience can be quite high. For example, while a pound of carrots will cost you less than $1.00, 8 ounces of shredded carrots will cost you approximately $3. The same goes for many other fruits and vegetables, especially fruit bowls and cups that are being sold more and more in your local grocery store. If you want to save a bundle of money you should clean,  chop and organize your fruits and vegetables at home.
  2.        When shopping in your local grocery store you would do well to take a look at the items on the lower shelves. That’s where they traditionally place the generic brands, the on sale items  and the store brands.  Avoid the central,  eye-level aisles as that is where the costliest items will be placed to attract your attention. The goes for the pharmacy aisle as well. Things like toothpaste, bar soap, shampoo, deodorant and other healthcare and or hygiene products are stocked the same way as the food, meaning the costliest stuff at eye level and the bargain stuff down below.
  3. Many grocery stores will place their nearly expired items on sale in a specific part of their store. Things like bread that is about to expire and other products with a shortening shelf life will be found. Also, many supermarkets if you a discount if you buy more than one item or a case of one item.  Whole Foods for example offers a 10% discount on anything that you buy a case of, an excellent deal indeed.

Well, we might have gotten a little sidetracked on some great tips for saving at the grocery store but, when you think of it, eating right is a big part of taking care of your health so it fits in with the general theme. Whatever the case may be we hope that you enjoyed these money saving tips and we invite you to come back soon for Part 5. (We promise we’ll get back on track.) See you then!

Top Three Reasons to Repair Your Credit Score Today

April 19, 2013 in Financial Planning with 1 Comment

The number one way in which you can boost your credit score is to pay your bills on time, but there are numerous other ways to bump up your score as well, such as keeping your credit card balances low, checking for credit report errors, refraining from opening multiple credit cards at once, and avoiding bankruptcy.

Chloe Mulliner is a writer and editor for www.CreditSources.org, a credit related website that provides loan options for people with poor or no credit.

You’ve probably heard that a bad credit score could cause limitations when you apply for a credit card or take out a mortgage, but did you have any idea that it could be the reason why your dreamy blind date doesn’t ask for a second date? Or how about the fact that you could be paying higher insurance premiums just because of the low number on your credit score?

If this is all news to you, it’s worth checking out the following three reasons why it’s a good idea to build good, if not excellent, credit.

A Good Credit Score Could Lead to a Second Date

Credit scores are becoming a huge make it or break it factor in the dating world. So important in fact, some daters turn to online dating websites to find compatible matches with similar credit report values. These people in search of love have begun putting more emphasis on each other’s personal credit scores than the more traditional aspects such as religious or political views.

Finding a soulmate is difficult enough before involving your credit score, so why not focus on building your credit so you can worry less about your score and more about making a love connection?

A Good Credit Score Could Mean Lower Insurance Rates

A high credit score won’t only help you receive low insurance rates when you’re buying a house, but it could also benefit your auto insurance rates as well.

When it comes to auto insurance, the Insurance Information Institute found that consumers with low credit scores file 40 perfect more claims than those who have high credit scores. Because of this, those who have poor credit sometimes end up paying higher insurance premiums. Conversely, those who have good and excellent credit scores generally receive more favorable and lower premiums.

Long story short, build and maintain good credit, and in response, insurance companies will reward you.

A Good Credit Score Could Land You Your Dream Rental

Have you found your dream rental apartment overlooking the beach? Or have you stumbled across a quaint little country house looking for a suitable renter? Whether you’ve found your ideal rental property, or you’re still in the market, we hope you have good credit!

Good credit will come in handy if your landlords asks for your credit report to see your payment history. If you have a tendency to miss payments, the landlord might not want to approve your application for your dream rental.

Best way to receive those house keys? Work on building your credit or ask if the landlord will accept proof of other payment history such as your utilities bills.

The number one way in which you can boost your credit score is to pay your bills on time, but there are numerous other ways to bump up your score as well, such as keeping your credit card balances low, checking for credit report errors, refraining from opening multiple credit cards at once, and avoiding bankruptcy.

Chloe Mulliner is a writer and editor for www.creditsources.org, a credit related website that provides loan options and information for people with poor or no credit.

Is the grass greener overseas? Financial advice for moving abroad

April 17, 2013 in Financial Planning with Comments Off

There are many, many reasons why people who are struggling financially move overseas. A new economy, new job, new friends and habits can equal a higher standard of living. Some of the most popular places for Britons to move include the Mediterranean, Caribbean and the USA, where attractively priced homes are bathed in sunshine.

But can you afford to emigrate?

People who earn enough to cover their monthly expenses and who also put some away towards savings, investments, pensions etc. seldom dream about ‘where the grass is greener’.

The prospect of moving is much more attractive to people who are scraping by, not quite deep in debt but not ahead of it either, and to those who are already sinking, whose savings are already long gone.

If meeting basic expenses is an uphill battle for you, setting up a home in a new country will seem impossible. There’s the cost of the flights, funds to tide you over until your first pay check, estate agents fees, visa fees, medical fees, new clothes for a different climate, rent bond, shipping costs and much more.

Make a change before you go

One of the scariest and for many, most exhilarating, things about moving to a new country is that you’re on your own with no safety net. It’s essential that you have enough money to get by until you’ve set up a secure life for yourself in your new country. Well in advance of departure, therefore, you need to do two essential things:

•             Increase your income: If it were easy, everyone would be doing it. If your current employment allows freelancing or part-time work, pick up some extra hours and put them in the bank. When you’re counting coins in a few months, you’ll be grateful for the hard graft now.

•             Reduce expenses: Downsize or initiate the selling of your property, cut back on eating out in restaurants and entertainment and stop any expenses that you can reasonably do without. Think twice before you stop insurance payments though!

Do the math

In some countries, you can expect to pay minimal health costs, while in others the costs are significant. In overcrowded cities like London you may pay a large portion of your income on transport and housing, while in places like Oman (where there are fewer income tax laws), you can keep virtually every penny you earn. Another tip for banking in Oman is to bank with a branch from home; some savings account might well have a limited access to funds, but banks such as HSBC can offer some unlimited access to funds, and even provide some debit cards with their savings account.

If you have a job or are looking for a job overseas, try to find out what your approximate income will be. Subtract your general living expenses from prospective income and compare it with your current budget. Don’t forget to consider the cost of the move itself and factor in a margin for unexpected costs. You may be surprised to find that you don’t have that much more to spare.

If you decide to take the plunge and move abroad, leave six months of more to get your affairs in order; that includes paying off debt, researching your international banking options, understanding the new tax system and moving your savings and investments.

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