Best financial tips for young adults

Unfortunately there is no subject in our education called personal finance so proper managing of the money is today’s usual finance issue. There are some basic but efficient and useful steps everybody should get to know if wanting to live a more comfortable and prosperous life.

Control successfully yourself and your financial future


Do not take the advice of others easily, listen to them but listen to  your intuition more and take the charge based on it. Arming yourself with personal finance knowledge will help you understand better how money can work for you and keep going at the same time. The skill of self-control should be learned in an early age but this is rare. Key of this is to always wait until you actually save up the money to buy something.

Emergency fund

There will always be some loans, credits and debts but no matter how low your income is and despite all this you should always find some amount of money and keep it aside. Emergency money will always make you better sleep at night and keeping you out of much financial trouble. This doesn’t money you just put your money in a mattress, put it on a saving account or money market account so it makes more money for you.

Save your health

Save your healthA single visit to the doctor without no health insurance could get you some really high costs, don’t wait for it to happen and search for some efficient medical insurance. Keeping your health safe doesn’t mean only to find some health insurance with the lowest rates that will save your money but also to take care of your lifestyle. Quit smoking, exercise, maintain your weigh with proper diet and your mind and body will give you a lot in return. Paying exorbitant medical bills just because of neglecting yourself is not a smart option for sure.

Point is, nobody needs special backgrounds or some special degrees to manage successfully their finances. Just taking more time and thinking properly about some basic financial facts connected to our lifestyle will get anybody to the right track. Remember it is not shame to ask for professional help in any area and especially when your existence is in order.

25/07/2018

Usual debt types

Debt is when money is owed by borrower or debtor, to the lender or creditor. The debtor may be a company, an individual or even a country. Loans, bonds, mortgages, and notes are all types of debt.

Interest is the fee that is paid by the borrower to the lender and it is calculated as a percentage of the sum that is borrowed. These interest rates can be fixed or floating. Mostly used debt types by the individuals are mortgage loans, credit card debts, and car loans.

The best idea is to first familiarize yourself with the terminology about debt so that you know what you have. Then, you can see how to deal with common kinds of debt.

Unsecured debt has no collateral, this is like a credit card or personal loan.

Fixed payment term is when the loan is set to be paid off by a certain date. Something like a student loan or mortgage.

Secured debt has a form of collateral, like a car or house.

The deductible loan is used to better your personal situation and it may have some tax benefits.

When the debt has variable interest rate it may change over the life time of the loan, same as credit cards. So it’s called variable debt.

How can you know if you have a good or bad debt?

If it increases your net worth, it’s good. If does not increases your net worth and you don’t have enough money to pay for it, that is a bad one.

DebtGood debt will allow you to manage your finances more effectively. The best case is taking out a mortgage.

Bad debt is when you use money for something that decreases in the value the minute after you buy it. Usually, that is life’s basic stuff like clothes, food or automobiles.

A credit card may be a very bad debt. It’s painful but it might help to take an inventory of all your credit card debt. Once you know how much you need to pay back, calculate how long it will take you to do it. Set a goal, cut expenses and start repaying as soon as possible.

You can find out if you have too much debt by analyzing your debt-to-income ratio. How can you do that? It’s a simple math. By adding up all of your monthly debt payments and dividing them by your monthly gross income you will have your debt-to-income ratio. If you are over 45% of debt-to-income ratio, that is the red flag for potential lenders. Usually, you can’t get a mortgage with a ratio that is over 43 percent.

When to hire a Financial Advisor?

When to hire a Financial Advisor?

The first thing almost everybody would ask themselves while thinking about this is why should I hire somebody to manage my own money? There is so much useful information around us and on the internet that can help do the investments on your own. Well yes, it is possible to do it like that, but there is also a great statistic report from many types of research that say about the great increase of your financial status in return for hiring a financial advisor.

So, in some perfect world everybody would hire a financial advisor but in a real world, this is a little expensive for many people. Here are some of the moments when it makes sense to hire a professional and when to go the DIY way instead.

Starting a family

A lot of new challenges come when we decide to get married and have our first born. Starting from new costs, joining finances, estate planning, life insurance to education savings, all this makes a lot of financial issues and responsibilities at one time when it gets really hard to balance it all. Right solution is a financial advisor who will successfully and effectively navigate all this in order to create a secure life for you and your family.

High earnings

It is hard to imagine but there are people for real who have a great ability to save a lot of money and make great decisions in that way but when it comes to making proper decisions about tax breaks or priorities they are lost. A professional planner will easily help with those decisions with his knowledge and expertise leaving you more energy and time to enjoy your free time.

The need of specific financial plan

For example, there are outnumbering repayment options for dealing with a student loan debt but it usually requires strong understanding in order to do it right. An expertise in financial planning with great knowledge for this specific situation will help anybody in no time finding jut right solution with a detailed strategy.

Retirement

Financial AdvisorWhen people are near retirement or retiring they are usually not sure about are they financially ready to retire, should they file for Social Security and what would be the best plan that will meet their requires and keep money last as long as possible. These are all the issues which professional specialized in retirement planning will solve with a single consultation.

Self-employed

This status brings lots of responsibilities like taking care of employees, various incomes, different retirement accounts and outnumbering questions about proper business structure and ownership. A professional advisor who specialized in this area will have excellent understanding for all of these issues and will provide various planning opportunities. He will make sure client gets the most out of the business and keep the money working how for the client also for business surrounding.

One thing is for sure and that is a good financial advisor will help you live a better life by taking full advantage of all possible opportunities keeping the peace of mind.

15/07/2018

Why do people end up in debts?

Why do people end up in debts?

On daily basis, more and more people are ending up in deep financial debt. There may be some obvious reasons and others hidden or overlooked factors that could have led them to it. There is nothing fun about being in debt and that financial burden causes you to delay life plans and also creates a big amount of stress that affects your health. Don’t let it take control of you, you are in charge.

Some of the overlooked reasons for the debt are:

Overspending

We can say that this is the number one problem with debts. People are spending too much money like there is no tomorrow. Maybe to you, this seems like apparent reason, but many others often overlook it. If you are spending more than you earn, you need to find a solution to it. Cut your expenses and find a way to earn more money.

Inflation

Many are not aware of how much the cost of living goes up each year. That can be a big problem for some of you. Housing, food, gas, really just about everything goes up each year. If you don’t get an annual raise you need to find a way to cut your expenses or to earn more money.

Lack of insurance or/and Medical Costs

DebtsIf someone needs to go through a medical procedure, there is a good chance that insurance will not cover everything. Also, there is much more trouble if there is a lack of coverage. You could easily accumulate tens of thousands of dollars in debt because it is hard to fight the massive cost of procedures.

This applies to businesses and individuals. Of course, your business is in no need of a hospital, but there are also things that can go wrong. Many people struggle to stay afloat when the emergency happens, so do the small businesses, if they are sued or an accident occurs they could be facing a big financial loss.

Expanding families

Many people may feel that they have plenty of extra money and once the kids come that can easily change for them. There is a good amount of money spent on daycare, every month. You may be unaware of it, but it can easily make you a problem with finances. Also, there are one or more people around the house now, that means, more food, more costs. Be aware.

Money Dashboard benefits

Money Dashboard benefits

This is a free app that lets you monitor easily your online credit card or bank account keeping marks on your spending. By making spending categories it makes a better view for the client to understand their budget more effectively. Support is done by somewhat smart and central dashboard which provides an integrated view of the total spending from all online accounts. Also, you have a great help from this app as it offers various related financial products to encourage you to save money while receiving a kickback if doing it so. All this spending trend and data are valuable information that is sold to market research companies because after all, you are the product.

Safety

This app provides a better position to their clients to spot easily any fraudulent activity. Regular use of this app will help anybody making their finances more secure and under better control. All the finances are in one place so you can monitor more effectively or activities and spot any suspicious transactions. There is even a choice of activating alert for every time money leaves your saving account. The important fact is it uses the same security certificate as the national banks keeping your data fully protected.

Advantages

Money DashboardAll accounts on one place is the first and significant advantage of this app. It adds up the money from each of your account and gives you a great picture with the real balance of your finance. Also, there is the possibility of categories where each transaction is managed to a certain area giving a clear picture about client’s spending. For example, if you had some costs from veterinarian it puts it in “Pets category”. This can be also very useful when getting information how big is your al of credit repayment category by each month. Very useful thing about this app is also the possibility of predicting your monthly expenditure.

An ethical debt solutions company

An ethical debt solutions company

At National Money Helpline we recognise that every person’s situation is different and we are positive that, whatever your problem, whether that be a money problem, debt management question or just a question to help you with your financial situation, we can find a solution that is absolutely right for you.

We have friendly, highly qualified, expert staff with great financial and debt management experience in helping people with money problems, so whatever your financial circumstances the National Money Helpline are here to discuss your options and help you. What’s more, you will be treated as a person and will have a dedicated member of staff to deal with your debt problems.

Our debt management plan could be an ideal way to turn your loans, credit cards, store cards and overdrafts into one affordable, single monthly payment so that you can pay off your debts and get on with your life.

Consolidating your debts into one single monthly payment makes your finances much easier to manage. We will also speak to your creditors in order to negotiate reduced payments and request that the interest and charges are stopped, frozen or reduced. Whilst we can’t guarantee they’ll agree to it, this would mean your monthly payments go towards solving and clearing your debt problems to help make your life debt free rather than covering only the interest and charges.

We have helped thousands of people solve their money worries with an affordable monthly payment solution using our debt management plan and our alternative debt solutions. Our debt advice stems from over 50 years experience in the creditor and debt management industry.

7 Proven Ways to Finally Say “I am Debt Free!”

 

“I am debt free.” Is it really impossible for you to say it? But still, being on that situation is still as suffocating as it seems. That is the very reason why we always find some ways to look for different paths where we will be headed to financial freedom. However, if you will never try, nothing will ever happen. Debt will always be there and worse, your debt might grow even bigger.

Use these following strategies to avoid such tremendous situation:

1. Know how to budget

Living from pay check to pay check should be way long over when you were still working. But once you are already living with a partner or with a whole family, this seems not suitable anymore. Therefore, you must learn how to budget and use your money to your own family’s necessities. You can use any personal financial tools in the web or even you can create your own Excel spreadsheet to calculate all of your expenses monthly. This way, you will know where all of your hard work could possible pay off and of course, it is for the benefit of your whole family.

2. Learn to downgrade

Sit down in your living room and ask yourself the following:

“Do you really need the extra channels on your TV?” Some of us subscribe to extra channels even though we do not need or even watch them at all. You can list everything that you would like to delete and call your local TV operator to remove it.

“Is an AC a necessity?” If you are a type of a person who lives alone and spends more time at work than at home, having an AC can sometimes just be a fancy appliances for us. If the temperature is too high inside, you can open your windows or just simply use an electric fan. And if ever it is too cold, warm yourself up by setting up a fire place or if you don’t have a fire place, feel cosy on a thick blanket.

“Do I need a home phone?” Majority of the people nowadays are already connected to a cell services or have a cellular phone and it can be used anywhere you go even in your own home. Therefore, having a home phone can already be discarded.

3. Rank your debts

If you are in debt to more than one person or if your credit card has been used more than you have expected, it is best to list them all and sort it from the highest to lowest. Make sure to pay the highest amount first since it could play as the highest percentage of your whole debt.

4. Organise a garage sale

Do you have many things that you are not using anymore? Old clothes, toys, books, furniture and appliances that can still be used may help you increase your income. Just make sure that they can still be usable and wearable for you to be able to sell it without a doubt.

5. Put your credit card spending in a halt

Want to stop the increase of your debt? Then stop using those cards. Leave them at home and just put some extra cash on your wallet. Sometimes, if we know that we have enough amount money in our hands, we go out of control without knowing the possible outcome, and by using those credit cards would just continually increase the debts that we have.

6. Watch out for sales

Whoever you may ask, everyone loves department mall or grocery stores’ sales. It could allow us to buy more in our list since everything is charged lesser than we have expected. Some even have promos like just buying one and you will be having another one for free while some products like shampoos have a taped item which is also for free.

7. Change habits

 

Love online shopping? Can’t end a day without hauling at the mall? Do you really need to drop by on a coffee shop and order an Espresso before going to work? Want to get those fries every single day? Maybe it is time to make some changes. Those habits can actually be changed. If you can’t do it, you can first start by doing it every other day, then every other week until you have already come to adapt to the changes. You will later see how well it can change your lifestyle as well and avoid living from pay check to pay check.

Personal Debt in 2014: So That’s Why Everyone’s Indebted!

Personal Debt in 2014: So That's Why Everyone's Indebted!

At least 51% of adults in the United Kingdom have debt as part of their daily troubles and half of our population are struggling to make it past the 15-30 deadline.

Personal debt in 2014 is significantly affected by rising utility bills and daily need bills, mortgage repayments, rising transport costs and more.

It is true that a big problem is definitely due to the UK’s policy regarding taxes, which puts plenty of UK citizens under an austerity-like lifestyle.

Well, I guess it’s not just you and me who went through all that trouble of debt. I guess EVERYONE did.

What and How To Cut On Your Finances

 

One of the many elements that are largely part of one’s life would be money. Finances are always present, from daily necessities like food and shelter to personal wants such as shopping for clothes and shoes.

Then again, with such expenditure, sometimes the money you have might not be enough, especially if you have other family members to take care of. Total spending can be different if you are single and living alone compared to those with people and loved ones under their wing. And if you are part of the latter, then it becomes necessary to cut down on careless disbursal of money.

Some of you may not even have problems regarding income but for the “unfortunate” number who do have such concerns, well, it is really time to change your way. Common habits that this type of folks have include splurging on luxuries and wasting resources like electricity and water. This attitude is no doubt clearly showing how big bucks are being squandered. And what is more so of a let-down is that they do this even if their earnings evidently point out they could not afford to act as such.

Speaking of luxury though, everyone wants to experience that. But in the present times, at most, this equates to items that are indulges rather than necessities. Yes, maybe that is why it is termed to be “luxury”, but it stands that people tend to spend more on these than commodities that really matter in the long run.

These symptoms just indicate that you are wasting your finances. It may not seem important at the moment; perhaps you could not care less because you are enjoying your life and all that. Nevertheless, it is a reality that you must face. If not and you continue doing what you always do, that may lead you to debt. And trust us, debt is not a pretty experience.

Therefore, when it comes to bills, help yourself to these tips on what and how to cut on them (and fast):

1. Energy and Gas Costs
Electricity is no doubt a major essential in homes and structures. With lights, you can go and be efficient by switching to energy saving light bulbs. Lessen or reduce the usage of air conditioning units and heaters, unless the temperature becomes unbearable for you or any of your family members. Tweaks on windows and other openings can help as well. For the instance that it is cold, sealing them or installing treatments such as blinds can trap the heat inside, making the interiors warm. This then eliminates your need to plug in those artificial sources.

Supposing you have a car, take extra care with it by cleaning it and pumping its tires. Doing so can affect your fuel efficiency (in a good way, of course). When you drive, avoid speeding a lot since that will cost you your gas.

2. Food and Groceries
Again, food is a staple. Eating three times a day is typical and most would even add for a simple snack in the afternoon or during midnight. Anyways, the concern here is how you consume your money. For starters, it is best to set a budget for your grocery shopping episodes. Remember to calculate one that is within your means. Writing down a list of essentials must be done too. And you should stick by it. If you are strict with this, you will only be able to buy and pay for what you actually need. In addition, consider other brands of a product. The one you currently patronise may be pricey. Hence, look around for lower cost options to save on the bucks.

3. Banking Accounts
Most likely, banks and other credit companies hold your money for you. But with that, there is a long string of fees, interest and expenditure that gets charged to you. And so, this is a reminder (and maybe even a warning) to really involve yourself when applying for an account or two. Whether credit or debit, choose an institution that offers the most benefits. Doing a simple search online can help you compare bank offers.

In instances where you have to withdraw money from the ATM, plan to do this in one time. Especially if the ATM is not of your bank, a minimal fee is subtracted from your savings. This may seem small at first but if you repeatedly visit the ATM for withdrawal, then that can pile up to be cash you can actually save for your own.

Is It Financially Smart To Improve Your Home and Garden?

 

Who says you cannot improve your home and garden with a tight budget? Being able to improve your home and garden is a pleasurable feeling most people. Seeing the beauty that flourishes from the improvements made, is a joyful feeling that it would surely bring. Who would not want their homes and gardens to be improved? But yes, there is that budget issue. What if you are on a tight budget? What if you cannot afford the expenses for the improvements? Is it financially smart to improve your home and garden then? If only there are some ways that you could improve your home without having to spend a lot but alas! There is. There are actually many ways on how you are able to improve your home and garden just within your budget limit.

Here are some ways that you can do to improve your home and East London garden features even if you are on a tight budget.

For your Home:
1. Plan Before You Begin
Before you can actually gear up and start improving your home and garden, first you must plan. Consider the circumstance if you are able to meet your budget in improving your home and garden. Consider the materials that are ready available at home and that is needed. Calculate the expenses it would take for the improvements.
2. Look for Economical Materials
If you are on a tight budget, looking for low-priced materials is a sure goal. But you also have to make sure that even if the materials that you pick are inexpensive, it must be good enough in terms of its quality.
3. Try DIY
It is truly an achievement and a wonderful feeling in being able to improve your home and garden by engaging in the process and doing the work yourself. You can search for the materials in your home and for the unavailable materials, you can just buy them. By doing DIY, you have instantly saved up for the services fee you would have paid for the workers.
4. Molding
Moldings are actually a worthwhile investment and it will do well in improving your home look. Also, searching for an architectural salvage and construction demolition business might also be a good source for purchasing remodeling materials at much lower cost or you could just DIY the molding yourself.
5. Accessorize and Repurpose What You Have
Yes, there is no better solution in improving your home and garden than to accessorize. With anything that you can find in your home, accessories and stuffs, give your home the style and theme you want it to have.

For Your Garden:
1. Hire Landscaping Gardeners in Dalston
You can opt to hire professional landscape gardeners for reliability and quality services. It is an investment enough for a much more quality and long-term result assurance and of course, they are experts in the field of gardens. You can discuss your budget with them but still able to achieve the garden quality that you deserved.