Things to be Considered before Taking Personal Loan

Things to be Considered before Taking Personal LoanWhy is the need of personal loan arising? Well, let me answer you up. When you want to get something for yourself and thereby you don’t have the source of money than the need of personal loan comes in to action. There are many benefits of personal loan but mark my words there are certain things which you need to consider at the time of taking personal loan for yourself. We all want to come out of the debt and for that we take the personal loan so that the debt which is being on our head gets off and we can have further a sound life. For this reason there are many things which you need take in to consideration before taking personal loan.  The further discussion will help you in knowing about better details which you are in need of.

This article will help you in providing all the information which you need to take in to consideration before taking personal loan for you. Well, for instance let me help you out with some of the points which you need to keep in to consideration before taking personal loan like the increase in the interest rates, your credit matters, scam which are observed in taking personal loans, etc. and many more matters which are taken in to consideration before taking personal loan for your matters.

Things to be considered before taking personal loan

  • Increase in the interest rates

Well, we all know that the rules which are being formulated are going to change at some point of time right? Similarly the Federal Reserve has been initiated with the plan of hiking up the interest rates of the personal loan which is to be paid by the loner taker who is taking the loan. So it is advisable to take the personal loan now, if you are thinking of taking it later because it is going to charge you up with more amount of interest rates than it is prevailing now.

  • Go for online best deals of loans

Well, no doubt there are many things which is to be considered before taking personal loan for yourself. But let me help you with one of the easy way which can not only help you in taking personal loan but it will also help you in finding out the best deals with lesser percentage of rates which is considered to be best for you. The online market has been increased a lot. With this new and more scope of getting online loan has also been increased for the borrowers who wants to go for the loan with lesser rates.

  • Observation of common personal loan scams

As we can see that many lenders have been indulged in the field of personal loan and because of this the ratio of the money lenders has been increase and this has result to the increase the scam of personal loan. Well, the identification of cam can be taken from the lenders requisition. If the lender is not asking for the credit wealth than it is something fishy which you need to take in consideration before taking personal loan for yourself.

 

Types of Bank Accounts

Types of bank accountsMost of us have do banking and have basic checking or savings account. They are the most standard accounts. But apart from them there is still much kind of accounts which you might be unaware of. Banks and credit union offers variety of other accounts. Check out for your options and see which one fits you the best.  Check out the types of accounts, match up with your needs and finalize the one from which you get benefited the most.

  • Money market accounts

Almost every bank and financial institution provides a kind of interest bearing account which allows you to write checks which is known as money market account. Money market accounts generally bears higher rate of interest as compared to a checking account or bearing account. Money market accounts are such which needs a superior minimum balance to initiate earning interest. But being high balance, you also high interest. It’s right that you get high amount of interest but on other hand if we talk about withdrawal of funds from money market account then it would be not as easy as of checking or savings account. You are only allowed six times transfers from your money market account and among them only three times you are allowed to do transfer by a check. Most of the banks and financial institution charges fees on money market accounts.

  • Certificate of deposit

Certificate of deposit is also known as time deposit or CD. They are also included in the types of accounts which are usually offered. Time deposits are for a particular period of time and it is fixed. The rate of interest given on time deposits is also fixed depending upon the time period. Time deposit allows you to have an option of choosing the time period for which you want to keep your money into deposit. This time period can vary from certain days to years. Once you decide the time period your money will be into certificate of deposit for that time period and you cannot withdraw it. There are some banks who allow withdrawing the interest but you cannot take your principal until the date of maturity. As you are allowing leaving your funds for a definite period of time, banks pay higher amount of interest as compared to savings and checking account. Banks also allow withdrawing your money before maturity but for this they charge penalty from you.

  • Basic or no frill banking account

There are many banks or institutions which offers account for low price and certain limited range of services. Basic accounts are one which offers you with a comfortable way of paying off the bills and cash checks. They are like usual checking account with certain limits on the number of deposits to make and number of withdrawals you can make per month. Generally basic accounts do not possess any interest. You can compare the basic account and checking account and which one offer you good deal with low balance opening and o need of keeping minimum balance in the account.

 

Wealth Management Tips For Women

women wealth financeAs we know that clothes of same size does not fit all. Similarly wealth habits of one person don’t suit all. It varies according to the income, expenditure, size of the family, gender and many more. Now if we come to wealth habits and investment of women, it’s generally different from that of men. Knowing the nature of women, they do save but they do expenses a lot especially shopping. So it’s very essential for women to develop their wealth management habits by many ways like saving, cost cutting, managing income, and reducing expense. Here are some of the easy ways for women for making strategic wealth management.

  • Get started with the wealth management process

It may be because of the traditions of the society or lack of confidence in women in matter of investment. Many of the women leave the matter of investment on men. But this is not to be continued now.  Now women need to actively take part in investment process and take their financial decisions themselves. Managing your own money yourself is an important task and a key factor to succeed in your life and make your end life beautiful.

  • Always consider your retirement plan at every age

Retirement is such a confirm time in your life which is definitely going to come and it will hinder you if you are out of plan and savings during your young age. The earlier you start to save the safe and secure will be your retirement. It’s not more, just keep 10 % of your savings aside and it would be a huge amount accumulated at the time of your retirement. Thus every women should put up a certain amount to be self dependent in future.

  • Consider savings as key financial strategy

Divide your savings into pieces, just as you do your investment portfolio by developing pension fund, retirement account, saving account and also social security. Women can’t work continuously like men as they have to take breaks from their work for family reasons and many such. Thus their saving capacity and investments are less as compared to that of men. For proper development, focus on individual savings account.

  • Overestimate your future financial needs

People cannot estimate their life. It can be short after retirement or it can be long, even more than your expectations. If you save thinking that you are not going to live more than particular ages then don’t do such a mistake. Women expected to live 60 years live up to 80 years long. Saving according to the current market conditions and prices is also wrong. You must consider the factor of inflation and price rise. The amount appropriate to fulfill your needs right now might not be sufficient to pass your livelihood in future. At an older age the health care expenses and medication will also cost you more. Thus if you are not getting a right figure to fulfill future financial needs then you can overestimate it but never underestimate it.

Five Credit Card Mistakes To Avoid

Credit Card MistakesCredit cards can be really good things if used in a responsible manner. They might be really luring, you might spend the entire month’s money and regret later. However, they are like the evils that are necessary. At times when you need to pay rents, take a loan or need money for an emergency credit card is your only resort.

For people who are responsible and credit cards can be their best friends. They are believed to be more secure than debit cards and are very useful. You still need to be careful and try avoiding few mistakes at all costs.

• Missing a payment: never forget to make payments on time. If you at all forget or pay late it might cost you a lot of money. There are hefty charges and interest fees that you will have to bear. Your credit gets killed if you make late payments and the bad credits only mean higher interest rates. Try making payments ahead of time if you are forgetful as late payments might cost you more than you can think.

• Carrying a balance: do not be negligent towards the payments that you make for your credit card. Consider it as a responsible way of spending the money you have rather than like a high-interest loan. Try making payments every month for your card. If not more than the bill at least pay the minimum amount. However, paying a little amount more also every month can lessen your burden. The interest fess that you have to pay every month will not be like a burden in the end. Otherwise use a lower line of credit to wipe out the balance.

• Not reading your statement closely: mistakes can always happen so check your credit card bills closely before making any payments. You might find some unfamiliar charges or charges that might not be yours. Get them checked and rectified. If you do not check you might end up paying twice or for something that you did not even buy. So, always check the details very carefully and closely. Checking your credit card statements can prevent a lot of problems and issues that might come up later.

• Spending all the credit: your credit cards might have huge limits but that does not mean you spend it all. You should not spend more than thirty percent of your credit card limit. The more that you spend the more interest you pay and it also worsens your credit score. If you are in need of more credit get the limit increased of your credit card but do not overspend on your limit.

• Taking cash advances: most companies charge you fees for taking cash advances on your credit card. The interest charges that you pay for these advances are usually more than the general fees. It might rack up ridiculous amounts of your interest charges and fees. Until and unless you have an emergency situation this is the biggest blunder that you could make.

5 Ways To Reduce Your Monthly Expenditure

reduce monthly expenditureThe regular expenditure of paying for so many bills each month are the biggest challenge by which nothing is saved up for future and also for investment. You cannot even enjoy the things which you want to because of the money that goes on in the necessity deadlocks. If at one go the expenses do not lower down then try of trimming it step by step. Some techniques which will help in trimming the expenditure are as follows categorically:

Reduction of the debt

• Home and automobile refinancing – debt payments can be reduced month wise by enquiring about the rates of lending and going for it. In this way in the long run the overall cost does not jump up.

• Union of credit can be approached for a personal small loan – for small purchases you need not borrow money from others and in return pay extravagant interest rate. If you have a solid credit the union will offer less interest.

• Paying the debt automatically – many institutions offers reduction of the rate if you sign up the automatic debt payment mode. Also you can ask for cutting down little rate of reduction from your credit card and not using your credit card until the financial situation is strengthened.

Mode of transport

• Selling of automobile – if a particular automobile is not being used up and is just lying down in the garage then it is better to sell it off by which the expense of insurance will vanish.

• Using public transport – for regular visits to office, school and other places you can opt for public transport by paying less than paying for the cost of petrol or diesel as the monthly allowance goes up in wonder.

• Inflation of the tyres – if you regularly inflate the tyres and go in for tyre checkups then the mileage is also increased.

Energy Consumption

• Installation of CFLs – less consumption of energy and long lasting products are a great push. Sticking to a particular company for the lights and bulbs is also another way to cut down on your expenditure.

• Thermostat that can be programmed – alteration of the heating and cooling is done by the programmable thermostat even when you are not at home. This will reduce your electricity bill.

• Utilization of timers and unplugging power devices – the phantom charge is blocked if you use strip of power and unplugging all those plugs which remain switched on for no use.

• Energy Efficient roofing – Colorado Roof Toppers recommend cool roofs to people looking to reduce a home’s cooling cost in the hot summer months.

Cutting down on entertainment

• Membership of the club – most of the times the clubs are not used by people as it is supposed to be so by cancelling the membership of the club saves a lot of money yearly.

• Cable bills and newspaper subscriptions – by reducing the number of channels you can pay less to the cable operator and by taking useful newspapers and few in number also cuts down the expenditure.

• Shun luxurious spending – expensive restaurants and expensive buying in a month has to be stopped as the money that goes on in plates and cutleries combined with brand shopping increases your expenditure.

How To Find A Venture Capitalist

Venture CapitalistAre you looking for some additional funding for your business? Well, venture capital investment seems to be really in vogue these days in place of traditional bank loans and there are many venture capitalist firma around. However, not all venture capitalists out there would be suitable for you and hence you have to be really careful while selecting the one for you.

Comparative study

The first thing to do here is to carry a comparative study among at least 4-6 potential venture capitalist firms in the market. Study about their market reputation and entrepreneur-client testimonials to understand the quality of their assistance. It’s advised to go for a seasoned venture capitalist firm since prolonged market existence speaks for authenticity & quality of service.

Adequate assets

Try to know about the asset resource of your chosen venture capitalist firm. This is to ensure that the firm is well-equipped to support your venture with sufficient financial backup. The point is more crucial when you are into a start-up business- if you are in initial stages of your venture you will need financial backup for several aspects such as marketing research, technology development, startup funding & then consequently first & second-stage funding.

Industry specialization

You must check out the industry specialization of the venture capitalist firm before you approach or sign up with them. Actually, today, most of the venture capitalist organizations prefer a specialized sector, based on their industry understanding. This helps them to fathom the prospects and growth of their investment. So, do not approach any venture capitalist firm which is not specialized in your business as by that you would be only wasting time & energy.

Business stage specialization

Some venture capitalist firms specialize in startup business while some are comfortable in assisting the business from mid-road. It’s important that you check out the business phase specialization of your chosen venture capitalist firm beforehand to ensure that you are getting help from the right & actually interested experts.

Beware of competitor investors

After you bump into a reliable venture capitalist firm interested in your industry and business stage, you have to check out their list of investments. Make sure that the firm does not help your direct competitors as there is a risk of you getting pressed by the capitalists for more business information which could be passed on to your competitors. In case, you have to settle with a VC firm working for your direct competitor, make sure not to reveal much about your business.

How To Save Money At Grocery Store

Grocery StoreFor all you spendthrifts out there, a common problem that you all might face is, whenever you go to a grocery store you just end up with a big hole in your pocket. This usually happens because you step into the store without a plan and you pick up whatever you feel like on the basis of your choice and at times mood. This problem however can be very easily solved with effective methods that can help you shop better and achieve your financial goals. Let’s take a look at few pointers which will help you keep your grocery bills minimum.

1. Make a list before you step into the shop: This is by far the single most effective step if you are planning on reducing your long grocery bill. Before you go out for shopping, sit down with your family and jot down a list of items that you might need. Things that should always make to your grocery list are cereals, fruits, vegetables, meats, pulses, sources of protein, pulses etc. Always include some fun items as well, since restricting yourself way too much will lead to more temptation. Hence a bit of leverage is always good.

2. Plan your meals in advance: The first point directly leads to this tip. Only when your meals are planned in advance can you prepare a grocery list for your home. Prepare a menu plan for the entire week and then jot down items that you will need to prepare them. This step will not only help you save a lot of money, but also a lot of time since before preparing meal you don’t have to sit and think about what to cook every day. So take some time out! A little time spent on planning, will save a lot in future.

3. Stick to generic products as much as possible: Buying generic products can be great way to save money. Now, by steering clear of brands you are definitely not cutting down on your daily dose of nutrients whatsoever. What you are doing is you are reducing bill amount by avoiding tags. Go carefully through the label, which informs you about calorie content, nutrients etc. Spend some time on scanning labels and pick a cost-effective item by definitely not compromising on health.

4. Get loyalty card from the store for added benefits: The store always gives out loyalty cards after a certain amount spent. Opt for these cards as you can avail discounts on each purchase.

5. Keep an eye for coupons: Your Sunday newspaper always contains coupons which basically are sales promotion offers. Make the most of them.

How To Calculate Rate Of Interest

Calculate Rate Of InterestCalculating the rate of interest for any kind of loans is simple and if you keep a track of it then it should match with the interest that you pay in the end. The easiest way to calculate the interest is by multiplying the given rate of interest with the number of years the loan has been taken. Suppose you have bought a house and have taken a loan for it. The interest rate for the loan is 5% while the mortgage amount is $250,000 and the total repayment time is 30 years. The rate of interest or the total interest will be calculated by dividing the monthly payment by 360 and multiplying the amount with the number of times in which you have to pay the full amount back. After this the private mortgage insurance and taxes can also be deducted. The rate of interest and the amount resulting in the end depends on several factors which are discussed below:

Amount of loan– the amount of interest that you pay is directly proportional to the amount of loan you have taken. Larger the amount of loan higher will be the amount of interest. However if the down payment is more, then the total interest can be lower.

Length of loan- generally a loan is taken for 15 or 20 years. If you think that paying a small amount on a monthly basis is beneficial for you then the length of the loan can be longer. But in such cases the total interest in the end is a lot more. Suppose you have to pay $100 per month for 15 years but you prefer to pay it in 20 years. In this case, although the size of the your monthly outflow will go down, the total interest paid in 20 years will be more than that paid in 15 years with a higher monthly outflow (more popularly referred to EMI).

Interest rate– this makes a great impact on the amount that a person has to pay in the end. Even with the slight change in the interest rate the total amount of interest can change a lot. There are however concepts of adjustable and variable rates but that is a rare case. As you start paying the principal amount on a monthly basis the impact of the rate of interest starts to decrease. The duration of the loan is also vital in this case in order to determine the accurate amount.

Vehicle Insurance

Vehicle InsuranceA vehicle insurance is a must have for every vehicle owner. It’s also known as motor insurance, car insurance, GAP insurance or auto insurance & refers to the insurance meant for trucks, cars, motorcycles & other forms of road vehicles. The chief use of vehicle insurance is to offer financial protection in case there is any mishap from your vehicle. The terms & conditions of auto insurance would vary with regions but every state in all countries do approve vehicle insurance – and some of the states have declared the basic insurance a compulsory for the car owners.

There are different types of vehicle insurance. The primary one is the basic coverage mentioned above that would help the car owner to compensate for the damage inflicted on other’s property by your car as well as injuries incurred by the hurt party. However, the basic policy won’t be able to cover up the entire compensation. Then, you have the full coverage vehicle insurance policy which offers collision & comprehensive insurance safeguard mostly designed to guard collateral used in obtaining financing for the new & used vehicles. These policies are especially suited for expensive and flashy vehicle owners.

You have the collision vehicle insurance policies as well to pay up the costs up till policy limits, sans any sort of deductible sum for damages caused from collision with some other object or automobile or sudden vehicle upset. Another form of vehicle insurance is comprehensive plans that help to cover up all the losses incurred by the vehicle including the car being stolen or destroyed by burglars.
There are several ways to ensure affordable vehicle insurance. One of the most viable is to get your vehicle backed by vehicle tracker and other car safety equipments such as burglar alarms. Moreover it’s advisable that you opt for not-so flashy vehicles if you are looking for affordable insurance policies.

Financial security for students

Financial security for studentsA recent survey shows that the per student cost is increasing more than the family income which is not rising at a very progressive state. The costs of education and higher education are shooting up by the day and higher education is just being something which the very elite people are able to afford. Apart from the rich the middle class people are bound to take loans to get their children to have the best of educations. Taking a loan is not paying the money which they earn but paying the money by other means. Since they are unable to afford the education costs itself it is difficult for them to cater to other needs of their children. This is when the financial security of the child is questioned.

There are various ways by which students can themselves earn for themselves a little amount which can be spent on themselves to fulfil their regular needs. Earning a little money by doing some part time job is the hot favourite option for many students. Writing articles as content for a wide range of portals on the World Wide Web is the most sought after part time for every student. Many students excelling or doing well in their field apply for paid internships too.

There are various ways for students to reduce financial stress the first one being staying far away from credit cards. It’s made for usage during emergencies but it seems credit cards are being used irrationally and at every little time when students feel the need to splurge.

Summer vacations should be spent fruitfully. Short term employments are a better paid job and it can be fulfilling too. A budget plan devised for proper rational thinking should be jotted down during free time as this is the basic key to financial security.