Keep Track of Your Credit Score
Many people seem to share the misconception that having no debt or late payments means they have a great credit score. In fact, your credit score is based on how you use your credit; so never using your credit card may actually be hurting your score. Instead, put a monthly bill on an automatic payment plan on a credit card, then pay the bill in full each month. This will keep your credit score active and building, with zero cost to you.
Recognize Good vs. Bad Debt
There are debts that are perfectly acceptable to have. An education, for example, is a strong investment that by some measures pays out a 15% dividend over time; getting yourself into a reasonable amount of student loan debt may actually be a wise money management strategy, if you look around for low-cost educational options that provide earning … Read the rest
The traditional advisor tends to be the most expensive. The fees are based on the dollar amount of products you buy. As an example, if you invest $100,000 worth of mutual funds and are paying 2% fees, you are paying $2000 per year as long as you own these funds. The 2% figure is an average MER (Management Expense Ratio) based on a mixture of equities and fixed income (stocks and bonds). There may be other fees like sales loads, account fees, trading fees, trailer or referral fees, administrative fees or penalties for switching or redeeming early. To know the real cost, you would have to add up the Digital signature certificate for your situation.
The fee-based financial advisor may have reduced fees since they are charging a flat percentage instead of an MER plus other costs. Reduced fees are somewhere in the range of 1% to 1.5% for an … Read the rest
The first factor that all the banks will look into is the ability of the borrower to repay the loan. So, banks will take into account the sources of repayment. If you are taking a loan for a business then the bank will take into account the cash flow that the enterprise can generate. The banks will also take into account another source such as collateral.
The bank will also go through the borrowers past financial record. If the business has been profitable and it can cover the debt then the bank will approve the loan. In case the business has not enjoyed success in the past as the borrower needs the funds to grow, then the bank will ask for a detailed explanation on how the loan can be repaid.
Good business credit is essential as no bank will bet their resources on defaulters. Sometimes, banks will also analyse … Read the rest
Positive impacts of stress on your financial wellbeing
- An anxious mind tends to think about the possible solutions to the looming predicaments. Ergo, when you are stressed with bills in your house, the brain develops a scheme that will provide cheaper alternatives that are cost-cutting, hence more savings. The survival instincts that kick in when worry occupies can be very effective reality checks to your expenditure.
- Stress gives you the motivation to work harder and earn more money. When you are concerned about your life after retirement, or about how you will provide for your children sufficiently, you become driven and strive to generate more income so as to be financially stable later on in life.
Negative impacts of stress on your financial wellbeing
- Stress has a negative impact on your physical and mental well-being; the two key components of human productivity and hence ability to earn. The decreasing mental
… Read the rest
Fortunately, the threat of the regulation had already started to change the way financial institutions do business. Some firms have moved away from their higher-cost products and toward making their fees easier to explain to clients.
Investors should always keep a close eye on how much they’re paying, since a fee of 1 or 2 percent can have a surprisingly large cumulative impact on their financial future if it’s charged yearly.
For example, did you know that mutual fund returns in 401(k) plans are normally reported as net returns, meaning that fees for managing your investments are subtracted from your gains or added to your losses before calculating the annual return. Other costs, such as administrative and record-keeping fees, are often divided among plan participants but are not explicitly listed on individual investment statements. This lack of transparency is frustrating for investors.
Investors should also ask detailed questions about how … Read the rest
If you find outdated or incorrect information on your report that has been prepared by the credit agencies, you need to get it corrected at the earliest as it may affect your chances of getting a loan at favorable terms and conditions. It is advisable to keep a copy or record of everything that you sent to the agencies when raising the dispute. You should avoid sending original documents to the credit agencies and should only enclose copies.
The procedures for disputing errors may vary from one credit agency to the other and it is best to become aware of the standard procedures so that you may be able to dispute items on your report. You can enclose copies of the relevant documents that you are disputing along with your name and accounts details clearly mentioned in the dispute.
You can list each item that you are disputing separately and … Read the rest
A recent study released by UBS shows that 58% of women worldwide defer long-term financial decisions to their spouses. This study included nearly 3,700 high-net-worth married women, widows and divorcees in nine countries. The results of the study showed that 85% of women were responsible for the day-to-day finances; just not the long-term.
What is really interesting is the generational span of this survey and, most notably, the generation most likely to allow someone else to control their decisions: millennials! Millennials are a generation well known for promoting equality and empowerment. Unfortunately, the survey results indicate the helicopter-style parenting millennials were raised with, where someone else is always ensuring their well-being, has bled into the financial realm. Fifty-nine percent of millennial women aged 20 – 34 are more likely to allow their spouse to take the lead compared to 55% of women over 50. The general excuse from the younger … Read the rest
Your first step is determining the appropriate amount of money that you may require for covering the time gap between the selling of your existing house and buying of the new house or other kind of property. The exact time period within which you have to pay back this type of fund is determined by the lending organization that you have approached.
The second step that you should follow is to find out a mortgage broker or even a banker who may help you in this matter in the best possible way. It is important that you should try to find a mortgage broker or banker who can provide high quality service and who may also charge a reasonable price rate.
Once you are able to find out one such person, your next step is to evaluate your asset in the best possible way. If you evaluate your asset effectively … Read the rest
There are several corners of your financial life that can be simplified through consolidation. Retirement accounts are one of those areas. If you’ve worked for several employers during the course of your career, you’ve probably acquired a few retirement accounts along the way. Accumulated assets left in a former employer’s retirement account are still yours, but they sometimes offer less investment flexibility. If you like the idea of having fewer accounts to keep track of, or if you prefer to actively manage your retirement dollars, consider consolidating stray 401(k) and IRA dollars by rolling them into a centralized retirement account. There’s a lot to consider when it comes to rollovers so it’s important to weigh all of your options carefully. (Consider a direct rollover, as withholding tax and tax penalties may apply for cash withdrawals.)
Credit cards and debt are two other areas where consolidation may be wise. Is it … Read the rest