Monthly Archives: February 2018
When dealing with your finances, it is important to get good and reliable advice. These tips that you come across from various sources like friends, family, the Internet, financial experts etc can help you gain financial success. There are experts online who are willing to give advice for free! After you get all the opinions out there, ensure that you will be in a position to make an informed final decision. You do not have to know all there is when it comes to money, you just have to have a realistic plan, and be disciplined enough to see it through.
The amount of money you have regardless of the amount is not as important as being enlightened about the opportunities that are available to you. It is important that you get the facts about saving and investing. There is no guarantee that you will make money from the investments you make but you have to be sure that it is worth the risk at the end of the day. For you to gain financial security it is important that you live within your means.
Learn to purchase only your basic needs and save as much of your income as you can. Include your savings in your monthly budget. It is also advisable to monitor your spending habits and you will be able to see where you need to make cutbacks or you can source for an extra income. If you use credit cards, it is important to control your spending. They are convenient but at the same time they can land you into a heap of financial trouble.
Bank financing, equity, seller financing and leasing – Do you even know what these words mean? If you don’t – don’t worry because that is what this article is for, to help you understand the financing options you can take to own that apartment or home that you always wanted. These words are thrown around too often these days by prospective sellers and bankers and sometimes not even properly explained leading to confusion when buying a property and looking at the different ways to finance it. These financing options are explained in the following paragraphs.
This is one of the most common ways to finance your purchase of a home. This involves taking out a loan from a financial institution (banks) and then agreeing with them on down payments and interest payment schedules. These loans are also known as mortgages, these are of two kind a fixed rate mortgage is one in which you have to pay a fixed amount of interest during the life of the loan.The other type of mortgage is known as adjustable mortgage rate in which the rate of interest varies during the loan term, both of these have their advantages, in a fixed rate system, you get consistency and know exactly how much you have to repay each month. Whereas, in an adjustable rate system, you have fluctuating rates which can sometimes work in your favor and you can end up paying less interest then you were supposed to.
This is a home financing technique in which the buyer borrows from the seller instead of a bank.This is sometimes done when a buyer does not have the necessary credit rating required to take out a loan from a bank or does not want to take a loan from the bank. In this finance method the seller accepts a down payment and provides a loan to the buyer, the details of this loan are included in a promissory note which promise the seller monthly payments for a fixed period of time. The Promissory note is kind of like a deed and with that in hand the buyer is the owner of the property. There are several benefits in using this method for example a buyer can save time as there is less paperwork involved also he/she does not have to wait for the mortgage to be approved from a bank. Also the terms tend to be more flexible as there is no middle man in the agreement and buyer and seller are directly in contact with each other.
Equity sharing is used when you cannot afford a home on your own and therefore gather finance from other sources to acquire your home. This can be done by arranging partners who then own the property along with you (partners should not be married to each other). In equity sharing partnership it is recommended that you have a good lawyer make up the agreement that cover the details such as maintenance costs, taxes and percentage of ownerships so that you do not experience any difficulties later on.
Rent to Own
This is also known as a lease purchase agreement and in this method part of the rent of the buyer is put down as down payment and when the down payments reach a certain amount then the buyer has the option to buy the property or decline according to his choice. Keep in mind that in this financing method the rent that you pay is usually higher then market price as some of it goes down as down payment for the property.
Family expenses have been hit hard in the recent times of recession and low growth. This has led to an increased number of personal bankruptcies. In order to avoid such situations in your life you need to plan astutely and manage your finances very carefully. This article will supply a few tips for families on how they can administer their finances and save for tough times.
You need to stick together. The entire family must sit and mutually plan a feasible budget. Each family member must understand their responsibilities and recognize that their contribution is important. The elder members in the family must set examples for the younger ones. You can start by cutting your personal expenses and spend less on unnecessary things.
Plan sensibly for all household expenses and other needs. There must be some balance between your income and expenditure. Review your savings from time to time and try to increase them. Before investing, find the best plan to give you maximum returns in the long run.
If you find that your loan has exceeded your financial limits and you are on the verge of going bankrupt, then it is advisable to consolidate your debt and negotiate with creditors for easy or a lower payment amount on your installments so that you can repay them without accumulating a bad credit rating.
Everyone in the family should contribute by keeping a check on the electricity, gas and phone bills. Even saving small amounts on them will help your budget considerably. Remember that in a family, you can not cut on the basic needs but working stringently and compromising little on luxuries can do wonders for your savings.
It is a collective effort; even children need to understand the significance of savings and probably reduce their expenditures. Those who are big enough to work part time can contribute to the family income by taking up few jobs in their spare time.
As we grow older our responsibilities also increase and once you become parents you have to deal with them pretty seriously. Taking care of children, providing them with the right education and other facilities can lead to some heavy financial burden for parents. In this case what can you do? What is most important is to prioritize your responsibilities as parents and determine the financial support you need to accomplish it. This article will cover a few tips that can help you manage your personal finances diligently.
1. First of all understand that now you have some serious duties to perform, hence you cannot act as if you are a 20 year old and make liberal financial decisions. You need to create a balance between your instantaneous and long term needs so that you can invest wisely. Manage your income properly and keep a check on spending and investments.
2. Plan for your child’s education early and keep funds aside for it. You will need to create a budget and estimate the finances that you will require for his schooling and higher education. Invest accordingly in schemes and investment plans that will have high returns when you require them most for your child’s education.
3. It is very common that people when they grow old tend to invest in property and buy a house. It is certainly one of your basic needs and you may take some loan for the same. Adhere strictly to your budget and repay loans in time so that you can avoid getting a bad credit rating or bankruptcy. Remember by simply paying the minimum due you are not doing any good. Try and negotiate with the creditors for simpler installments.
4. Supervise your credit card payments and pay your credit bills in time to avoid heavy interest.
5. Remember that with children you also need some handy cash for few unplanned expenses like medical bills etc which may crop up anytime.
It’s unfortunate that personal finance hasn’t yet turned out to be a compulsory subject in schools or colleges. So a lot of people out there are fairly naive about managing their money.
But this doesn’t actually mean that personal finance will always be way above your head! Frankly speaking, it doesn’t take too much to roll back on the right path. Just read this article to know how to craft your own strategy. Fortunately, you don’t have to be good at math to grasp the ideas!
Use self control
May be you were taught by your parents about this when you’ve in your childhood. Just in case you haven’t mastered it, it’s not too late. Almost everybody found success in life through delaying gratification. If you can do it, it’ll be easy for you to have your finances nourishing.
True, you can easily buy something on credit the moment you want, it’s a better idea to wait till you’ve saved up that much. Do you love paying interest on your new pair of shoes or jeans or a bottle of milk? Avoid putting each and every purchase on your credit card.
Take full control of your financial future
Unless you learn to smartly manage your money, others will figure out ways to easily (mis)manage it. Unfortunately, some of them are ill-intentioned (e.g. crooked commission-based, so called financial planners).
At the same time, others might be pretty well-meaning, but might be totally ignorant about what the consequences of their actions are (e.g. Grandma wants that you buy a new house despite the fact that you can at best afford one of those double-crossing adjustable-rate mortgages). So do not rely on other people’s advice. You should rather take charge of your finances and research on some basics on management of personal finance.
Know where all your money goes
When you’ve read a few books on personal finance, you’ll know the importance of keeping your expenses below your income. The finest way of doing this is – budgeting. Once you’ve realized how the seemingly negligible things are adding up at the end of the month, you’ll know how to control that.
Same goes for recurring expenses. If you avoid wasting money on the luxury apartment now, chances are high that you’ll be capable of affording a great condo or a new home even before you know it.