Basic Money Management Advice

Finance (Photo credit: Tax Credits)

In the era of technologies and mass media there are some people left who think of their financial life as they are able to see a distinct connection with this aspect of life with a well-being of others. Most people do not understand that finances are an inseparable part of our lives and they will not just get rid of it by their wish. If you are ignorant about how to control your money, you should better learn to as you will just lose money you have been working so hard for. Managing money is a learnable thing. So why do so many people stay away from money management? Just begin to learn and get to know all kinds of information for becoming stronger in this sphere of life and you will soon notice how life changes for better. 

Though the process of learning may seem difficult and perplexed, it does not mean that it is the same way in reality. Indeed, the basic two criteria are the most momentous: self-control and a plan. 

Probably many times in your life you have heard such a word: budget. Try to learn it and use it as a golden book. Set up a budget and plan everything, all your expenses, incomes, bill payments, track literally everything, even the sum of money which you spend on coffee. The best variant is to jot down all your spending at once, for not to forget anything. It will be easier for you to control your money in that case. 

Self-control and discipline are the same terms. Remember all the deadlines and terms of the bill payments. If your money is tight for the moment, then do not buy anything that you don’t really need. Think and take care of your future. Nevertheless, there is plenty of advice for money management and the previous two were just the basic ones. If you want to improve your financial life completely, to turn it upside-down, then try to follow some other pieces of advice below. 

Organize your expenses 

If you spend too much money on something where you can save, then why won’t you do that? If you buy coffee at Starbucks or any other cafeteria, then make coffee at home and that will help you to save even more money than you expect. 

Savings account is a must 

Put some money away for a rainy day. The perfect option is to use a bank for opening a savings account. The point of such account is that you are getting an interest rate and the more money you have there, the higher your interest rate is becoming. 

Learn how to deal with emergencies 

The urgent situations are usually unforeseen and nobody may predict them, that is why be prepared towards anything. Save some money from every your salary for an emergency case and you will not fall behind when any situation occurs. 

Still if you do not have any money for a rainy day, neither for an emergency case, then you may use such a convenient option like immediate loans till payday. They intended for people who are not able to pay for some service or bill in time. Money will be sent and withdrawn from the customer’s personal bank account automatically. There is not need to collect the papers on the personal data as the service is faxless. 

As far as you can see, you have a lot of advice for working out your financial life. Nonetheless the most momentous point is your willing. Without it you will never climb on the top.

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Loan Approval Rates Post Drop in July

In recent property news, home loan approvals have declined by their highest rate in five months in July because of inflated interest rates in other developed economies, dissuading home shoppers from the Australian market. The decline in loan approvals equates to 1% for July after the 1% increase for the month of June, according to the statistics bureau which reported the news from Sydney on September 9th. Bloomberg News had conducted a survey among 16 economists and the general consensus was that the rate for borrowers taking out home loans would remain unchanged for the month of July. 

The news has been taken as an indication of a weakening economy in the aftermath of a recent decrease in retail sales, the loss of 8,800 jobs and the realisation of the seventh consecutive monthly trade deficit. The data has also prompted speculation that Glenn Stevens, RBA’s Governor would be looking at dropping interest rates in November after the cuts in May and June left the national cash rate at 3.5%. Analysts have been speculating about whether 2012 would hold further rate cuts but the last three months have not seen any changes coming from the Reserve Bank of Australia with regard to the national cash rate.

The decrease in home loan approvals has also been taken as yet another sign of consumer conservatism and analysts warn that until consumer behaviour trends can do a turn around, the property market growth rate may continue to disappoint forecasters. The recent credit shock, which highlighted how much debt Aussies have accrued in credit card debt, coupled with the an increasing urgency to increase their savings coffers seems to have had its effect on the property market with consumers not being taken in by low interest rates, preferring to invest their energies into paying debts off and coping better with the rising cost of living which hit a high when the government launched its carbon taxes, sending household utility costs skyrocketing.

The sum total of mortgages dropped to $20.1-billion, a decline of 18 %, for the month, while lending to owners decreased by 1.4% compared to figures released for June. Investor home loans for resale and letting decreased by 2.7%, further highlighting investor conservatism and a slowdown on property developments. However, the market is still optimistic in this respect, with property investment loans on offer at http://www.bankwest.com.au/personal/home-loans/home-loans-overview#investing-in-property.

On a more positive note, the number of loan approvals granted to first time homebuyers increased from 18.5% in June to 19.2% in July. Even more impressive was the year on year increase of 16.5% to first time buyers and indicating that there is potential for growth from the younger generations.

The economic slow down has been attributed to the rising cost of imports and weaker housing markets even though the gross domestic product increased by 0.6% from the three months through to June when it saw a 1.4% improvement.

The country’s two biggest lenders, Westpac Banking Corp (WBC) and the Commonwealth Bank of Australia (CBA) have announced that fixed mortgage rates have been reduced in an effort to lower borrowing costs for consumers and stimulate more activity in the housing sector. By contrast, an August report revealed that house prices had risen in the second quarter after five consecutive quarters of lowering prices. In addition, while analysts seem to concur that the downward spiral has come to its highly anticipated end, the last three to four months have only reflected what has been considered as flat line activity. It’s not all bad news though, as a spike could cause further market volatility and the flat lining could be giving home buyers more time to ease into the property market.

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3 Ways to Keep Learning in Retirement without Paying for an Expensive Degree

 (Photo credit: Wikipedia)

Having talked to many friends and family members approaching retirement, one common goal among many of them is to go back to school. Of course, most of these aspiring learners don’t necessarily need the credential of a degree. Rather, they just want to keep on learning, and they’re interested in becoming an expert in a specific field of study that’s different from the one they chose when they were in college. If this is you, consider the benefits of learning outside a traditional degree program. Here are a few options: 

1. Research continuing education centers in your community. 

Almost all universities and/or major cities offer continuing (also called “adult) education centers. These programs don’t necessarily grant degrees, but they do offer courses that are specifically tailored to your interests and passions. What’s more, most continuing education centers offer courses with very flexible times and dates. This is especially important for those in retirement, who may have many other projects and activities they’re pursuing. For an example of what a continuing education center may look like, check out Rice University’s Glasscock School of Continuing Studies in Houston. 

2. Enroll in a Massive Open Online Course. 

Massive Open Online Course, also known as a MOOC, is the latest trend in education technology. A MOOC is essentially a free course, usually offered through an established university that encourages the participation of students from around the world and has virtually no cap on the number of students who can participate. The most successful MOOC to date was an artificial intelligence course offered through Stanford. 160,000 students enrolled including several Stanford students, and 23,000 students ended up completing the course. The professor who taught the course gave a certificate to each student who completed the class as well as a grade. 248 students received a grade of 100 percent, and none of these students were from Stanford. MOOCS provide retired, lifelong learners the opportunity to learn in a collaborative environment for free, all the while being taught by world-class professors and improving their computer skills. 

3. Join a club or organization. 

Sometimes being self-taught is the best way to go if you want to learn a new skill. It’s also the cheapest way. At the same time, learning in a group setting can spur motivation and help you learn more efficiently from those who are more skilled. One way I learned to speak Russian fairly fluently was by teaching myself using different books, coupled by joining a Russian language MeetUp group. MeetUp.com is a great way to find a local learning group that focuses on whatever skill you endeavor to pick up. 

Of course, none of the above ideas is necessarily comparable to enrolling in a full degree program. At the same time, if the learning is what you're looking for, and not the credential, the above all great options for learning without having to pay an arm and a leg. Good luck! 

Katheryn Rivas is a freelance writer and former educator. She enjoys writing about trends in higher education, college life, and lifelong learning. Check out more of her advice and reporting at OnlineUniversities.com. Feel free to share your comments and questions below!

How to Avoid Extra Costs at the End of Your Car Lease

Car Lease (Photo credit: NobMouse)

$250 to dispose of your vehicle, $1000 for extra miles you put on the clock and $200 to replace the light bulb and the worn tires—lease agents constantly nickel-and-dime consumers when their lease runs out. 

Here’s a rundown of what can trigger those fees, and some steps to take in self-defense.

Disposition fee: Leasing companies charge you if you choose not to buy the vehicle at the end of your lease. This fee is set as compensation for the expenses of selling, or otherwise disposing of the vehicle. It typically includes administrative charges; the dealer’s cost to prepare the car for resale and any other penalties. Make sure this fee is stated clearly in the contract and is agreeable by you before signing on the dotted line. At lease-end, you are left in no position to negotiate as the dealer can apply your refundable security deposit towards this fee. 

Excess mileage charges: Almost all leasing companies will charge a premium for each mile over the agreed upon mileage stated in your contract. This penalty can be as high as 25 cents per mile and can add up quickly. To avoid the risk of running thousands of dollars in excess mileage penalties at the end of your lease, always check the “per mile” charges in your contract and be realistic about your mileage before you sign any contract. If you think the limit is unrealistic given your commutation needs, then negotiate with the dealer to get a higher mileage or contract for additional miles. 

Excess tear-and-wear charges: Another potential cost at the end of the lease is any incidental damage done to the car during the lease. This is deemed any excessive damage done to the normal tear and wear of the vehicle. Notice the use of the terms “deemed”, “excessive” and “normal”. There is no standard formula to define what’s “excessive” and “normal” and it’s up to the leasing company to assess – or deem – the damage and determine what they are going to charge. This leaves you at the mercy of unscrupulous leasing agents who set stringent tear-and-wear standards. 

Make sure you read the description of these standards, understand them and agree to them. If your leased vehicle is damaged prior to the end of the lease, you may find it cheaper to repair the damage yourself than pay the excessive charges of the leasing agent. In the event of a dispute over the charges at the end of your lease, get an independent third party to do a professional appraisal detailing the amount required to repair any damaged parts or the amount by which tear-and-wear reduces the value of the vehicle.

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10 Ways You Can Save More Money

Many people have little money leaks that they may not even realize. Over the years these tiny amounts of money add up to hundreds of dollars. Being conscious of where your money is going is the difference between winning and losing in the money game.

I have listed 10 ways to save money and plug up those money leaks:

Savings Tips

1. Consider your needs vs. your wants. Think about items you purchase on a regular basis. These add up. Where can you save?

• Do you eat out at restaurants a lot? 
• Can you cut back on daily expenses, such as coffee, candy, soda, or cigarettes? 
• Do you have services you do not really need, such as cable television or a cell phone? 

2. Set up a direct deposit and an automatic transfer to your savings account.

• When you get paid, put a portion in savings through direct deposit or automatic transfer. 
• If you have a checking account, you can sign up to have money moved into your savings account every month. What you don’t see, you don’t miss! 

3. Pay your bills on time. This saves the added expense of:

• Late fees, extra finance charges 
• Disconnection fees for phone, electricity, or other services 
• Fees to reestablish connection if your service is disconnected 
• The cost of eviction, repossession and bill collectors 

4. If you use check-cashing stores regularly, you might be paying $3 - $5 for each check you cash. Consider opening a checking account at a bank or credit union.

5. If you get a raise or bonus from your employer, save that extra money.

6. If you have paid off a loan, keep making the monthly payments to yourself. You can save or invest the money for your future goals.

7. Avoid debt that does not help build long-term financial security. For example, avoid borrowing money for things that do not provide financial benefits or that do not last as long as the loan. Examples include: a vacation, clothing, and dinners out in restaurants.

8. Save your change at the end of the day. Take that change and deposit it into the bank (every week or month).

9. When you get a tax refund, save as much of it as possible.

10. If your work offers a retirement plan, such as 401(k) or 403(b) plan that deducts money from your paycheck, join it! Most employers will match up to $.50 on each dollar you contribute. The matched amount is free money!

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Payday Loans Are Still Popular with Consumers

Loans (Photo credit: zingbot)

Short-term financing is the common choice for those who have money difficulties. With pay day loans, you have the convenience of getting a particular amount of money through a faster process. Payday loans need to be settled within a certain period of time like 15 days, 30 days or even 60 days. Note also that there are cases when lenders allow a 6-month term for loan repayment. This, however, is on a case to case basis? 

How do you qualify for payday cash loans? 

The reason why many consider these cash loans is that it does not have too many requirements. As a matter of fact, lenders just want a guarantee that you can pay back the loan on time. As such, expect that they would ask about your current employment. Usually, qualified applicants are those who have already been employed for at least 90 days. Proof of steady income for the previous months would also be required if you aren't currently employed. Documents can be sent through fax or email. But, there are also times that lenders do not require such paper works. It's best though to be ready to ensure a faster transaction. 

It's also vital that you have an active bank account where the lender would deposit the cas fast. Lenders prefer to elect bank accounts under the applicant's name. Contrary to popular notion, credit standing has no impact on pay day loans. Should the loan be granted, it would also not affect your future credit rating. 

How long is the loan application processing? 

Competition among payday loan providers have provided a big edge for borrowers. Majority of lenders promise pay day loan approval in less than an hour. Some can even go as extreme as 15 minutes. 

Why use payday loans? 

There are many conveniences when you get one week payday loans. For one, it has a lot easier application process. It's good if you're not targeting a relatively large sum of money and it  doesn't have upfront fees. All you need to provide is the information on your finances. You can also choose your application medium. Do it online or by phone and the results would still be the same. 

The bottom line is that you won't be tied to a loan that you need to finish in years. You get to solve your credit problems immediately. At the end of the day, pay day loans are really the best options for unplanned cash problems. 

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