Finance Blog – Loans, Mortages, Insurance

Helpful personal financial tips

Posted by luqman - 06/06/10 at 10:06:19 pm

Everyday we come across so many advertisements on television, newspaper and radio about how to plan our finances.  People are ever ready to give you tips on how to manage your daily finances.  We come across the same tips everyday and there is nothing different to what they have to say.  Following the below mentioned simple tips will help you succeed.

Educational expenses of your kids
Higher education expenses are increasing year after year.  If you want to give your kids the best of education, then you need to start saving now.  Invest at least ten percent of your income every month in savings schemes which will give you good returns.  Inculcate the habit of saving in your children as well so that they respect money and also know how this money will help them in pursuing their goals and career.

Save money for your education
If you have not been able to complete your education due to lack of funds, then think about it.  For this, you need to start saving and rejoin college.  If you are unable to fund your education, look for alternatives.  Do not drop the idea of going back to high school as this education will surely help in your career at a latter date.  The better your education, the better would be your career.  This is so straightforward and simple too.

Refrain from extended warranties
When you buy household goods or electronic items for your home, do not extend the warranty period, unless it is an absolute necessity.  The product will always have a warranty.  Some products have a warranty guarantee for three months and this period is more for some other products and it extends to one year at times.

Look out for affordable brands
Even if you are totally committed to one particular brand, you should always look out for cheaper and affordable brands if it is going to offer you the same quality and service.  Try out different products so that you get an idea about varied brands.  You never know, you may always find something durable and affordable and that too at a low price.  Hence, you need to try out your experimenting skills.

Never compromise on health
Health is wealth.  Never ignore your health just for saving a few pounds.  Health should always be on the top list of priorities.  This is more applicable if you have a family to fend for and they are totally dependant on you for their needs.  Take your doctor’s appointment and just go in for a routine check to be sure that things are fine and you are in good health.  If the doctor asks you to reduce weight for staying fit, then you need to think about it seriously and get back to shape.  You may either want to take up dieting or go for a crash diet plan.  The choice is yours.

These simple personal finance tips are helpful at all times.  Check the one which suits your requirements and which will help you remain financially healthy.

Guidance for personal finance and investment

Posted by luqman - 16/03/10 at 11:03:59 am

As the recessionary clouds are fading away from the international markets, investments and personal finance concerns are also picking up. Sadly most personal finance managers guide people on ways to increase liquidity by purchasing their company’s credit instruments primarily, credit cards and personal loans. The credit situation may get out of hands and debt refinancing or consolidation is the only options left with. And mind it! These are the high risk options which might lead cause an individual very dearly. For instance, a mortgage against home loan for sealing up the credit may lead to home foreclosure in case of payment defaults.
In order to stay afloat and maximize liquidity some of the best in class personal finance & investment tips are as follows:

• Individuals should understand their risk capacity. Young guns can manage a 60%-70% debt and remaining portion with equity. As one grows older, the debt portion has to significantly come down. An ideal Debt portion should be 20%-30% for individuals aged 60+.

• Investing in secured government bonds, fixed deposit schemes, pension schemes, insurance products and equity linked saving schemes is beneficial in the long run. Individuals can realize higher dividends and few are even tax free!

• For children and spouses dedicated financial instruments should be purchased to look out for their education and health respectively. Friendlier payment terms can be negotiated with the bankers and other reliable financial institutions.

• High risk instruments such as Mortgage loan against home or a mortgage loan against a vehicle might provide short term liquidity but can rip off in long term. These are smart instruments for service providers. The lesser rate of interest associated with them draw more people towards such instruments. However, what is missed out on is the longer payment durations and interest component.

• At the start of each financial year, individuals should assess out their credit, equity and investment plans. Investment should be managed smartly in debt instruments. As far as possible secured investment instruments must be preferred.

• At the time of financial year closure most individuals sort out tax benefits. Individuals should rather target the off season months or recessionary periods in economy. Bankers and other financial institutions generally offer discounts and healthier deposit rates than peak periods.

• Only reliable bankers or financial institutions should be sorted out for managing your financial needs. Cheats and newer companies should be completely ignored. After all, it’s your hard earned money and it needs to be parked in safer hands.

• Nobody can eliminate financial risks completely. The idea is to mitigate risks. If you have $1,000 available for investment it should be invested across various investment products and not one in order to maximize your profit at maturity.

Car Finance no Deposit

Posted by luqman - 14/12/09 at 10:12:04 pm

When considering car finance options you may have already come across no deposit car finance. Most car finance companies will offer this option for people who suffer from a poor credit history or have a low income. These finance companies will evaluate your current credit situation based on a variety of different methods depending on your needs at the time. The loan you will qualify for is based on your current capability to be able to pay it back on a monthly basis and therefore you will not qualify for any loan that is beyond your current economic abilities.

Many companies are designed to specifically deal with people in a low credit situation and to organize finance deals for people just like you. It is not unusual for these companies to have people with a poor credit rating as their main customer base. Whether you are self-employed, have a low credit rating or no credit history at all these companies will have a particular scheme they can offer you to get you the finance you need without putting their loan in jeopardy.

Many companies will offer tempting deals such as 0% interest rates on their vehicles but of course this money is more than made up in the size of deposit they require. Companies that demand large deposit sums upfront do so because they need the acquired interest that the sum can accumulate for them so either way they receive an interest profit. You can expect to encounter a 30% deposit from these types of deals which can be more than a little expensive for most average people.

This makes it much more beneficial to choose a car finance no deposit option so that you can take advantage of a much more competitive interest rate and not have to find a large deposit to begin with. Naturally if you are struggling with a poor credit history you may not necessarily have all the money upfront to pay with which is why you need financing in the first place!

Always make sure you treat special offers with caution when applying for car financing. Some brand new cars are actually second hand through a technicality in the system which means they can depreciate rapidly in value. It is therefore wise to make sure you investigate your chosen vehicle thoroughly before applying for finance options. You may find a great deal today but it might not be the best one tomorrow.

Once you have found the right car dealership and finance firm for you and you have chosen the finance package you need such as a no deposit car finance deal, you will need to make sure you know exactly what your budget is for the car you need. You may not be able to get the car of your dreams immediately, but if you do not overstretch your budget you can ensure you will get approved for financing without a deposit and start to prove your credit worth for future vehicle purchases.

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