4 Ways to Make Sure You Have Money in the Bank

The value of saving has been instilled in us since our childhood years. We were taught to save for the proverbial rainy day and other emergency situations. If you’re having a difficult time grasping the concept, it basically means making sure you have enough money in the bank. This could be for hospital expenses, calamities, or other issues which may arise unexpectedly.

Here’s how to start your own emergency fund:

1. Start Right Away

Don’t put it off. Start saving as soon you can. You can be a student, a young professional or a recently divorced single Mom. Do it now and start with something that you think is right to put away for the rainy day. If you wait until you receive your bonus  or commission or your pension, it may already be too late.

2. Treat It as a Monthly Expense

Look at savings like a bill. You set aside a certain amount every month to cover it. Treat savings the same way, if you can set aside 10 or 20 percent of your income, well and good. Do it regularly – no ifs no buts!

3. Open a Savings Account

It’s called a savings account because you’re supposed to put in your savings there. Make it different from your payroll and checking account. Remember that this is emergency money that you shouldn’t be touching, no matter what.

4. Know What a Rainy Day Truly Means

You can’t withdraw money from your savings to cover your credit card or water bills. No, that’s not how it works. When your car breaks down you can charge the expenses on your card and pay it off the next month. This is also applies when you want to shop because of a really big sale. Learning to differentiate between needs and wants is key here.

These four tips are just basic things you need to do in order to start your own savings account. The more you put in, the bigger it grows. And, you’ll be very thankful that you’ve resisted the urge to spend every cent of it many years down the road.

Usual Billing Errors We Often Commit & How To Correct Them

Every year there are over £500 million dollars in excess fees paid to utility companies. These are due to billing errors which are often neglected but can certainly take away a substantial amount of our budget over time. They can be overcharges from energy suppliers, internet, cable, mobile phone and so much more. Here is a straightforward guide to help you determine the things you should and shouldn’t be spending on.

The Utilities

Always check the dates. Oftentimes, billing is automated and there are some overlapping charges which can cause a huge problem with most billing. Check the date range for that particular statement to make sure you are not paying twice for the service.

Take time to calculate. Know how to calculate metered use of electricity and always double check the bill charged. This can be burdensome for many of us, but this is the best way to keep tabs on billing errors.

Keep an eye on any irregularity. When weather changes, there are certain changes that occur in the way you live, and so your bills can significantly change. Summer breaks spells more time at home, with kids using so much of the electricity as they play and stay longer at home. But, if you experience power use fluctuations on steady months of August or September, this can be a tell-tale sign of a bigger problem. Inspect your meter accuracy or get in touch with your supplier for an investigation to make sure everything is running smoothly.

Mobile Phone Plans

Careful with the apps. A lot of games and apps are given away for free, but there are some that require in-app purchases or hidden charges steer clear of these apps. You do not want to be surprised with a hefty mobile phone bill next time!

Never allow default settings to bill you. Fees as mobile and roaming charges can balloon over time. Check on this from time to time as some operating system updates can cause your mobile device to turn on to the default settings and turn ‘on’ these services without you knowing ever knowing. Make sure your phone’s mobile data and roaming services are off when not in need.

Review your usage. Do you in fact use all of the text messages and data charged to your bill every month? This is a very typical billing error. If you see a problem or unusual activity, ask your service provider. Rule of thumb – never pay for what you do not need.

 

Internet/Cable Bills

Watch out for that deal. When you sign up for an internet or cable service, your provider would offer you with some over hyped deals that can often last a year free of charge, after that you will be billed double! Be careful with the deals you sign up for. Make sure there will be no added charges when the promotion offer is over. Read the fine print before you commit to signing that contract.

Bundles are not always that amazing. Sometimes they can be offering you services you won’t actually use in the long run and this can cost you a lot over time. Stick to what you will actually use and insist on getting a standalone service if needed as opposed to bundles if they are not practical and useful for you.

Brand new services spell brand new fees and charges. When you subscribe to a new service, usually you will be charged for new installation, labor, equipment, and other charges – do not let them get away with these exorbitant and useless fees. Instead ask them if there is a complimentary service they can offer to you as part of a loyalty program for customers like you.

10 Crucial Aspects of Personal Loan That You Did Not Know About

Personal loans are very easy to avail of these days. But, do you really understand how personal loans work? To avoid any financial problem, you have to be religious with your repayments and know in the first place why you are taking out the loan. Personal loans are the kind of loans that you borrow for any financial reason that you might have.

1. Figure out the amount

Personal loans can be bigger, and you can get somewhere around £1,000 or higher. Personal loans are intended to be used for whatever purpose or whatever it is that you will need the loan for. Always aim for a smaller amount then after repayment, you may borrow later on.

2. APR can either be variable or a fixed one

Many borrowers know for a fact that the APR rate of the interest has to be repaid aside from the loan. Know for a fact also that APR can either be variable or a fixed one. Fixed means that the rate never changes, and variable APR can change at any given time. Variable rates are cheaper at first but, they can be quite expensive in the long haul.

3. Expect monthly repayments

With personal loans, be sure to expect monthly repayments. This way you can work your repayments into your monthly budget. You have to make the necessary adjustment to your budget so as to fully repay the loan. Anything charged on a weekly basis or more can definitely hurt your finances.

4. Ascertain interest rates before you get a loan

From the lender’s ads you can easily look at the amount you can borrow, it can range from £500 to £1000 or maybe more. However, this is not the exact amount you will have to repay to the company. First, know the APR and the interest rates. Always read the fine print to know the exact terms and conditions of the personal loan.

5. Check if repayment holiday possible

Many personal loan companies will allow a repayment holiday. This is a certain amount of time off from repaying your loan. Oftentimes, these may be allowed at the beginning of your loan take out. They are meant to make your life easier as you will no longer stress about repaying immediately after you have taken out the personal loan.

6. Avoid lump sum repayments

Lump sum repayments lead to penalties. Some people like paying their loans on a lump sum basis, but this can be prone to penalties. If you intend to repay the loan on a lump sum basis consult with your lender to avoid any financial problems.

7. You will never lose your car or your home

Generally, personal loans are unsecured loans, so you do not have to worry about losing your car or your home because there is no need for any security for you to get a persona loan. Unsecured loans such as personal loans do not have any assets tied to them as collateral.

8. Always keep a healthy credit rating

Owing to the amount of personal loans, it is at times advised to keep a good credit rating. You can start building a good credit rating profile by taking up a loan and paying it back on time. This is very important if you plan to loan as much as £1,000 to £5,000 or more.

9. Consider personal loans very carefully

Always consider personal loans very carefully. A lot of people take them out for their home renovation, DIY projects, emergencies, and more. Do not take it out of whim or impulse; you might have more financial problems down the road if you are unable to settle your debt accordingly. Ask yourself, is it really necessary? If the answer is yes, then go ahead. Otherwise, refrain from taking one.

10. Charges for late payment

Late payment fees are charged if you are not careful about your repayment schedule. Avoid making late payments on your loan. If you think you are unable to make your loan repayment on time, inform your lender right away. Late payment fees can make result to higher fees and can be expensive, to avoid the stress always pay on time.

Personal loans enable you to make use of money the way you want it, but you have to manage your goals and targets accordingly. Make it a point to let personal loans work for you and not against you to be able to take full advantage of it.

Ditch These Five Wasteful Habits

It’s ironic how people want to learn how to save more, but want to buy more things at the same time. Some people need to save because they have an ever-growing family while others want to buy a house, car or go on trips abroad. The internet is teeming with helpful articles and guides, but we’ll break it down to five simple steps for you.

The best way to save money is to get rid of bad habits and practices that cost you. Let’s take a closer look.

1. Stop Buying Overpriced Commodities

Some people equate quality with price. They think that just because an item is expensive, they’re already getting premium items. This is not always true. Buying “branded” or “designer” clothing doesn’t add any value at all. It’s okay to buy these really high-end items if you have the money, but if you’re living from paycheck to paycheck, don’t.  You can find high- quality clothing with great styles and designs at less expensive stores. The same goes for imported grocery items. Buy local and support your community. If you want to save some more, ask your doctor for generic counterparts to your prescription medicine. You’ll be surprised at how very little it costs!

2. Avoid Banking Fees and Late Fees

Pay your bills on time, especially your credit card bills. Late fees and interest charges can cost an arm and a leg, so paying your bills before they are due will actually save you money. You’re also throwing away money when you make overseas withdrawals while you travel. The right thing to do would be to withdraw  a certain amount in advance and try to stick to that budget.  The ATM fees alone are already substantial.

3. Stop Subscriptions You Don’t Use

If you’re paying for cable bills, Netflix,  magazine subscriptions but don’t use them, cut them off. This also goes for your gym membership or country club affiliations. These things look good to you but if you don’t use them, there is really no point. You can also choose which ones to let go of and which ones to keep. For example, if there’s already a gym in the country club, there’s no need to get a separate gym or boxing membership.

4. Stop Buying “Disposable Items”

Buy good quality but not overly expensive items. When you buy the very cheap products, on the other hand, expect that they’ll be thrown away in a very short time. You can’t expect quality from bargain items, so strike a balance. Look for items that are usable and durable but don’t come with exorbitant price tags.

 

5. Stop Living Beyond Your Means

When was the last time you sat down and took a long, hard look at your finances? How much do you make in a month and how much do you set aside for bills, rent, food and other necessities? If you have a car, that is an additional expense that you have to factor in to your monthly budget. To save money, you have to live within your means and even move a notch lower. You can use online tools to project your monthly expenses and see how much you actually spend in a month.

After doing all of these, you should be able to tuck a little money away as savings every month. If it’s still not enough, consider getting a second job to augment your income.