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The Importance of Income Protection


In today’s tumultuous economy and unemployment rates it really makes you grateful for having a safe and secure job. Unfortunately, there are no guarantees as to how long that job will last, and how long you will be able to perform the necessary tasks. I work a simple office job, no heavy lifting or physical exertion. Yet, last year I found myself physically unable to work due to a severe illness. Fortunately my employer provided disability benefits so that I was able to receive my income while I recovered from my illness.
Income protection is an issue that can often be overlooked; people can get stuck within the mind-set that these things won’t happen to them. Whilst researching income protection policies I came across a recent advert that is part of a campaign by Australian insurance comparison site Choosi, this summed up for me the way that insurance can be overlooked.

Another issue is that sadly there are many people that work for employers who don’t offer the kind of benefits that I could receive, and that’s when having income protection insurance is especially important. This type of insurance will ensure that people who are left unable to work can still receive a portion of their income for a defined period of time. Say you pay for 6 months of coverage and then find yourself hospitalized for a similar period of time; you may be eligible to receive up to 75% of your regular pay.

While there are some basic age restrictions, and you need to have been employed for a certain period of time prior, this type of insurance provides an immense peace of mind for you and your family. I find this type of insurance necessary if you are the only member of your household that works, and if you have dependants that rely on your steady income. If you have a wife and children then income protection insurance from a site like Choosi will make ease your worries if you’re ever left unable to work and provide for them. The best part is that even the self-employed workers, or part-time workers are covered as well. I know plenty of bloggers who make their living from their online endeavours, and this type of insurance would be perfect for them.

Tips on Sticking with Your Budget

There are times when major expenses cannot be avoided. You may want to reward yourself with a new car, go on a vacation or buy a bigger house. Your first impulse might be to take out a loan to pay for this; but, it that the wise thing to do? If you have developed the habit of monitoring how much money you make monthly and how much you spend on your expenses, you will know much you can put aside for future expenses.

At the end of the day, creating a budget and sticking to it is the best way to manage your finances. It may not be easy sticking to it but once you have developed the discipline, you will appreciate the freedom it will give you from borrowing money every time a major expense comes along.

Here are a few tips that can help to stick to your budget:

  1. Prioritize Savings – Determine how much of your take home pay you want to put into your savings account. Once you have chosen that figure, try your best to stick to it. Say it’s 30%. Once you get your pay check, take away the 30% and deposit it in your savings account. What you have left is your budget for your expenses and you must try your best to live within that.


  1. Use your credit card wisely – When you go out for shopping, remember that using your credit card does not give you the license to go berserk in buying. Remember that you will be billed for every purchase you make and will be charged with interest should you fail to pay on time. Using the credit card has its advantage. It saves you from carrying actual cash plus you earn rewards as you use them. A wise tip in credit card use is this – do not spend on something you don’t have money for at that moment. Do not treat it as a loan that you can pay for “in the future”. Pay your credit card bill in full and not just the minimum amount due. That way you can avoid surcharges and other interests.


  1. Do away with bad habits – Smoking and drinking are not just bad habits, they are expensive ones as well. Cut them out and put your money to better use.


  1. Share the responsibility – If you are not the sole breadwinner, share the budgeting responsibility with others – your spouse, roommate or family members who are earning as well. If you see others being careless in their spending, chances are you would be too. If you all have your own responsibilities in keeping the budget, you would be each other’s check and balance.   

Next time you want to buy the latest gadget in the market, look into your personal financial statement and see if that expense can fit into your budget. Chances are it will if you know where to look.

Personal Finance Advice That Takes Only Minutes To Read, But Will Help For Years To Come

Do you desire to make life-long financial changes for the better? This is something you can do, but you must invest some research time. There is thankfully a ton of advice to been had here in this article.

Paying off any credit cards that have high interest rates should be your priority as you seek to pay down your debt. While you may personally prefer to pay all your debts at the same rate, zeroing in on those with high interest rates benefits you in the end. This is very important, since credit rates are expected to rise soon.

From every check, take out savings first. Saving the money that is “leftover” will leave you with zero savings. Knowing this money is put aside for savings, it helps you to create a budget and avoids the temptation to spend it.

Young people wanting to build up their savings can go far by understanding and taking advantage of the magic of interest compounding. Get yourself a good savings account and set aside a portion of your earnings.

Being aware of the value of one’s possessions can help prevent financial loss. When you sell a vintage item, you may gain some personal wealth.

Plan for your taxes so you can get on a better track with personal finance. Think about the investments of pre-tax income you can make through your employer. Keep some money away for medical expenses. Sign up for any employer-matching 401K programs offered at work. Wisely using your earned money makes good financial sense.

Give yourself a monetary allowance so that you do not completely deprive yourself while building up your savings account. Use the budget to purchase things that you want. When you hit your budget limit for the month, you should understand that you are done with entertainment purchases until the next month’s budget begins. Your budget will remain in tact, and you’ll still be fairly happy.

You may not know it, but when you pay full price, you are paying too much. Don’t feel like you need to be loyal to specific brands, and concentrate on buying only when you have a coupon handy. As an example, if you usually purchase Tide laundry detergent, but presently have a money-saving coupon for Gain, purchase the Gain and save some money.

If you are barely surviving, it might be a good idea to get overdraft protection. Although you may have to pay a little extra each month, the fee for overdrafting could be as much as $20.

One way to save money is to cut off your cell phone. While this is not the most popular way to save money, cell phones are not a necessity. Actually, your smartphone and PDAs are a matter of convenience more than anything. Look at your plan and see if it is possible for you to cut some of the costs, at least.

In order to get the most out of the property that you own, take steps to control the cash flow in to and out of it. Keep track of your income and how much you spend so that you can see how your property is doing after every billing cycle. Be sure you have a firm property budget established to refer to as a guideline.

Set up a bank account that automatically takes a few dollars each month and saves it if you want to save quite a bit of money. This is an excellent strategy which helps you to manage your money much better each month. It is also helpful if you are saving for a big event in the future, such as a wedding or a special vacation. 

You should now have a clearer understanding about personal finance. With all the information provided by this article, you now have the necessary knowledge to manage your promising financial future. All that remains up to you is to be determined and strong willed to build a strong financial future for yourself

Rental Insurance for Your Investment Property

Are you looking for an adequate investment vehicle in order to support your long-term financial goals, or perhaps retirement?  With the economy, and specifically the housing market at low, coupled with historically low interest rates, this could be the best time ever to buy a home!  Not only that, this may be the best time ever to buy an investment property as well.  The upfront monies required to buy a turn-key property are significantly lower than in years past, and while banks are acquiring the necessary capital to invest, credit is becoming increasingly more available to everyone.  I’ve actually been giving consideration to renting out my current home and purchasing a new one next year as well, so this is a hot button topic for me personally.  However, while this can be a great investment there are concerns that come along with it.  I have to worry about keeping a constant renter within the home so I can continuously receive rental income while paying two mortgages, as well as the worry of keeping the home in good shape while someone else lives there.

If you are considering buying a new rental property, already rent one out, or renting your current resident than heed this advice.  Make sure you look into rental insurance, or if in the U.K. you should look into landlord building insurance, to give yourself peace of mind.  This type of insurance will give you income protection in times when you are unable to find a renter.  They will also protect your home and the contents within the property in case they become damaged.

Public Liability Insurance & the Small Business

Part of being a small business owner is not only working to grow your business, but also being able to protect it. In order to do this, there are various kinds of business insurance policies to protect your business from potential risks. One risk that can endanger your business relates to members of the public or customers coming onto your business property. If one of these individuals should become injured or sustain damage to their property, they may file a claim against you. Public liability insurance protects you as a small business owner from such claims.
Public liability insurance can cover a variety of damages that a small business would need to pay out to the third party. This can include any monetary damages awarded to the injured party. Without public liability insurance, a small business would be forced to pay this expense out of its own pocket. This could lead to the end of the business, as these damage amounts are typically staggering. Public liability insurance will also cover any legal fees incurred by the small business for defending themselves against the claim. The legal expenses may also be incurred as the legal representation for both parties to try to negotiate an agreement.
As part of taking out a public liability insurance policy, this coverage can be extended. For instance, in some businesses, employees must go onto the property of clients. Should there be an injury to the client or their property on their own premises, then the small business is still legally responsible. For instance, if your small business is a plumbing business, the staff will be going into other homes and businesses. Should they damage property in the home, the public liability insurance would cover it. Also, if they leave a tool out and the customer trips, a claim may be made. Public liability insurance would also apply in these situations.

Personal Finance for Young Professionals

Investing to improve your personal finance can be a particularly tricky situation and there are different roads to achieve this common goal. It is entirely dependent on you to decide how you want to save your money, but we will surely lead you to get the best routes!

Investment market is the best way to save some money as well as discover some returns. Many young professionals think of the present only and fritter away money in chase of happiness now. However, what they forget that the infinite future lays ahead when they would also need to meet other commitments in life. Therefore, it is always wise to plan for your future now and here.

Story of Dave Ramsay

You must plan for your financial stability unusually early in life. In fact, you must think about it as soon as you are out of the hallowed portal of college! You can darned well see the example of Dave Ramsay who became the youngest brokers to enter the Graduate Realtors institute in Tennessee.

Nevertheless, with the Tax reform Act initiated in 1986, Dave’s financial support began to falter. Dealing in notes led him to bankruptcy. He was not left with any finance in hand, but he was not running low in spirits. He analysed his awkward plight and put his book out called Financial Peace to assist young Americans towards financial security. Dave Ramsay has been instrumental in preaching the tit-bits of financial investing via television and radio.

In a dilemma- mutual fund or 401k plan

Most young professionals are in a dilemma as to where and how to achieve financial security. Most people will encourage them for stock and mutual funds, but before that, he must line up his salary and budget. He must organize the budget such that it is not particularly tough but is still not extremely flexible. Employers will also provide you with 401k plan, which cpuld be a compelling choice because your employer will give you the idea that will fit your availability of funds, but yet again, you must know where your money is being invested. Do not use 401K plan in the emergencies, as it would cost you penalty taxes.

Mutual funds are exceptionally strong options for people who want to invest further on. For example, a young professional can invest in small rise with calculated risks or high growth with many risks. There is the multi-sector, short-term corporate and so on investment category.

Use the credit card judiciously

Many young professionals overused the credit cards and quickly caught up themselves in the dire financial situations. Use credit card with a responsible approach and do not be trapped in the marketing gimmicks of shopkeepers.

Attain information about investing

Try to understand the distinctive schemes yourself and keep your eyes and ears open to different financial schemes to save the hefty fees of the financial adviser or broker.

How To Lower Your Life Insurance Premiums

Life insurance is a valuable tool that can provide financial protection for your loved ones if you die. Getting life insurance if you’re over 50, though, can be a costly proposition. Because life insurance companies use age when determining coverage rates, you will likely pay more than a 20 year old would pay for the same amount of coverage. Fortunately, there are simple ways you can help keep your life insurance costs under control. 

Opt for Term Life Insurance 

Your agent may suggest that you purchase whole life insurance, which covers you for the rest of your life or until you reach the age of 100. Although whole life insurance might make sense if you are looking for a way to provide your children or spouse with an inheritance, it is typically quite expensive if you are over the age of 50. 

You can opt instead for term life insurance, which covers you for a specified number of years. If you outlive the policy, it will not pay out. Because insurance companies have a lower risk of a claim payout with term life than on a whole life policy, the rates for term life are significantly lower. You can purchase the same amount of coverage for a fraction of the cost. 

Typically, the shorter the term, the less you will pay for coverage. A 10-year term policy will cost less than a 30-year term policy. 

Shop Around Before Buying a Policy 

Not all insurance companies charge the same rates for life insurance coverage. The cost per thousand dollars of coverage can vary substantially among life insurance companies. By obtaining several quotes before choosing a life insurance policy, you can ensure that you are getting the coverage you need at the best price. 

Internet-based quoting sites make shopping for life insurance rates a simple process. You can enter your personal and health information and obtain a quote within just a few minutes. Some quoting sites will provide you with rates from several insurance companies at once, making the process even faster and easier. 

In some cases, you can even buy a life insurance policy online after you have found a policy that fits your coverage needs and budget. Some life insurance companies offer special rates for online buyers, which can help you save even more money. 

Quit Smoking 

Finding cheap life insurance if you’re over 50 can be challenging enough, but if you smoke, it can be even more difficult. Life insurance companies typically have separate rating tables for smokers and non-smokers. Smokers pay substantially more for the same coverage than non-smokers. You may have to remain smoke-free for a certain amount of time, usually one year, before you can qualify for non-smoker life insurance rates. 

Pay Your Premiums Yearly 

Coming up with a year’s worth of life insurance premiums can be challenging for some people, but if you can do it, you will likely reduce your life insurance costs. Although monthly installments are more convenient, most life insurance companies tack an installment fee onto each monthly payment. These fees can cost you a substantial amount of money over the life of the policy. 

Although you might want to spend as little time as possible thinking about life insurance, the time and effort you put into these strategies can pay off in the form of more budget-friendly premiums.


Find the Right Life Insurance Policy

Life insurance is the same for all people throughout the world, it offers protection for your loved ones should you happen to die and leave behind debt that would financially hurt them. It can also replace you financially. Although you may not be there physically to be able to give advice or help in bringing up your family, you can ensure that enough money will be available to make certain your children will reach adulthood without suffering financially. The alternative is often destitution for many.

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How Much to Put in Your Emergency Fund

MetLife, in a recently released study, concluded that nearly one in two Americans has less than $5,000 to tap into in the event of a major illness. What’s worse is that the same American will lose an average of $12,000 during the first year of a medical crisis. This includes having the necessary medical coverage.

“The MetLife studies found that many people are unprepared to cope with the toll of lost income as well the out-of-pocket medical expenses and other illness-related costs,” said Clea Barth, vice president, Critical illness Insurance Products, MetLife. “A critical illness can have a long-term impact – even three to five years after being diagnosed, 60% of people experiencing these serious medical situations are still incurring out-of-pocket expenses.”

I know a couple who lost two babies during child birth. Their health insurance didn’t cover the births/deaths 100%. So they were stuck with sizable bills—twice—for years afterwards. I can’t even begin to imagine the anger and sadness as a result.

According the rest of the article, we’re supposed to have Critical Illness Insurance (CII).

CII can complement existing medical coverage and other financial protection products by providing a lump sum payment to help offset the spike in out-of-pocket expenses resulting from certain critical illnesses, such as cancer, stroke, heart attack, major organ transplant, or kidney failure.

So, according to this study, we should have $12,000 at a minimum in savings. In my personal finance venture, I’m aiming to save at least 6 months of living expenses— thankfully quite a bit more than suggested here. And that’s 6 months of zero income.

I’m not sure the difference between CII and short/long term disability so I won’t comment here. But this may definitely be something worth looking at to supplement current savings. And yes, I realize the study was released by an insurance company.

Reference: Met Life Press Room