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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.

Think Before you pay Money for a New Vehicle

Money for a New VehicleThe 6 things we should keep in our minds before paying money for a new vehicle these are as follows:-

Decide which vehicle you would like to purchase
– Choosing the vehicle is the first step of the whole procedure. Whether you want a sedan class or hatchback you need to decide it first. Then decide on the features would you like to have in your new vehicle. All in one cannot be possible as it can exceed your range so you must keep it in your mind while selecting.

Take a test drive – Visit the best car dealer of your choice which has different options that you want. Look for the car you want and must check its interior look to make you feel comfortable. Take permission from salesperson for a test drive. During the test drive be careful about the handling of the car brake and acceleration. Ask the salesperson about the vehicle its various descriptions.

Find out the vehicles invoice price – Invoice price also termed as dealer price which the dealer pays to the manufacturer for a particular vehicle. There are various websites where you can find out the invoice price.

Get pre approved for a loan– Look for the best interest rate and loan conditions for a new vehicle. Credit unions are the most excellent preference to secure a low interest rate on a new car loan.

Get email quotes from several car dealership
– Send email to three to four dealerships for the vehicle you want and ask for a quote. Don’t forget to include vehicle color vehicles neat point and other options you required.

Go to the dealership to pick up the vehicle
– After receiving the best quote for your vehicle go to the dealership and purchase your car along with fulfill all the paper works.

Tips to Protect Yourself from Credit Card Scam

Credit Card ScamCredit card facility is very much in demand now days since much of the transactions are no longer done in cash. The fraud done with the credits cards is very much prevalent now days. It is not at all a safe option to trust the restaurants and shopping malls. You must take the necessary precautions before you actually give your financial information especially your credit card number. Here are some very helpful tips that you must follow and it will definitely help you to protect yourself from credit card scam.

a) You must keep a strict eye on your credit card when you are personally transacting with it. Take it back as soon as possible and make sure that you have a watch on it because copying the various details on your credit card does not need much time.
b) You must be sure of the person whom you are giving your credit card. Make sure that the institution that you are dealing with is a reputable one. Reliable companies do not call up their clients and ask for card numbers over the phone.
c) You should never respond to emails that ask for your credit card details for verification purposes as they mention.
d) You must always check that the website where you are providing your card information is a reliable one or not,
e) You must sign your card as soon as you receive it.
f) You must also check your bills as soon as you get them to make sure that there are no overcharges done. You must match your bills and your account to make the balance between the two. This helps you to save a lot of your money from being deducted unnecessarily.
g) You must keep your PIN number just to yourself. This can protect you in case your card gets stolen.

Tips to follow while using an ATM

When it comes to the use of ATM you need to be quite careful in this connection. You need to make it sure that you have all the directions and instructions at your disposal. It is pretty important for you.

Be careful about card insertion techniques– Be careful about card insertion techniques. It is pretty important on your part to do so in the precise and exact fashion. There are different insertion techniques at different ATMs. You need to be careful as well as aware of those techniques. In case you find some difficulties while inserting the card ask for the help of the security guard over there.

You must not let the card stay inside the machine for a long time– In this regard you have to remain cautious about one particular thing very precisely. You must not let the card stay inside the machine for a long time. It is pretty imperative on your part to ensure that. If it stays inside for a long time then the card might get stuck over there. You might have to do a little bit of hard work to get it out. You have to report to the bank authorities if it happens.

Do not let another entity peep at the password– Do not let another entity peep at the password. It is a must. At the same time you must not let other take a look at the other essential such as the identification number. You have to ensure it at any cost.

If you make it a point that you are going to keep an eye on these aspects you will have a pretty good experience. So keep them in mind specifically. Have a great experience while using the ATM. Best of wishes!