Biggest Money Mistakes – Personal Finance Basics

Mistakes are made with money everyday by everyone when it comes to personal finances basics. Some of the most wealth people in the world make mistakes, people in the middle class make mistakes and the poorest people in the world make money mistakes. It is an almost unavoidable issue. The more poor you are, the more those mistakes can hurt you. What are the biggest money mistakes people make? Read on to learn more why this happens.

1. Neglecting Your Credit Scores

These three-digit numbers are more important today than ever, especially today with all kinds of people defaulting on their debts. Banks that lend money are incredibly cautious about to whom they will lend money.

Banks are looking for low-risk customers. If your credit rating is at 750 or higher, lenders will do almost anything for your business. A high credit rating also means you will get great rates on home mortgages, car loans, personal loans and credit cards. Insurance company’s and landlords also use credit scores to determine potential applicants, that’s why it is crucial to maintain your credit.

Do you know your credit? There are all kinds of resources that can show you. They will help with your personal finances basics.

2. Carrying Credit Card Debt

If you carry a balance on your credit card not only are you paying exorbitant interest rates but you also ruining your opportunity to get a mortgage or some other kind of loan and you are lowering your credit score. If you want to fix your personal finances you need to eliminate your credit card debt. If you need help in eliminating your credit card debt get it.. You won’t have any leverage with lenders if your credit is in poor shape. The sooner you eliminate your credit cards the less likely you will ruin your rating.

3. Too Much Home or Auto Debt

You should not exceed thirty percent of your gross income when it comes to how much you are paying for your mortgage. On that same line of thinking, how much you pay in transportation expenses should never be greater than ten percent of your income (that includes insurance, gas and repairs). If you are paying more in one or both of those categories, you are in over your head with regards to home or auto debt.

What to do? It may be time to rethink where you are living. If you are unable to afford a home or apartment with a thirty year fixed rate mortgage, you can’t afford to live there. If you are unable to pay the 60 month loan for a vehicle, you should be driving that car. Those are simple personal finance basics you must know.

4. You Tapped Into Your Emergency Fund or You Don’t Have an Emergency Fund.

The value to have money in hand has become more and more valuable with each passing day. You should have an emergency fund. That fund can assist with paying for unexpected expenses like as car repairs and it will even cover any bills if you lose your job. Most people aim to create an amount that is equal to three months living expenses. If you have a family it is wise to be able to cover six months. Clearly the more you can afford, the better. If you don’t have an emergency fund, you should start creating one. A way to get started is to have a goal of creating an amount of $1,000 and then go from there.

You don’t have to make mistakes but everyone does. The fewer mistakes you make the better off you will be. If you are able to avoid these 4 crucial errors, you can begin enjoying the financial freedom you deserve. Trying to live within your means, staying on top of your debts and your credit are the personal finance basics we should all take care of.

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Personal Finance Basics – Do You Check Your Credit Score Regularly?

Did you know that the credit companies can make mistakes? Sometimes you can be refused credit because of a bad credit score that is just plain wrong. Somehow or other they have the wrong information about your credit history and this is being passed throughout the industry. It could be a mistake on their part or a misunderstanding but it really does not matter at the moment because it is there and is affecting you. Your personal finance basics knowledge should have a default position, which is to check your score regularly.

Checking your score regularly will also let you know if your financial activities are affecting your score. In either case you should check out any instance of your score lowering. Checking your score regularly enables you to deal with any problems as they start to appear and not when they affect your finances.

People have different ideas about how often you should check your score. It depends on your circumstances and whether or not your finances are changing. But, as a minimum, I recommend you check your score at least annually. The vast majority of people do not do this.

The main bureaus operate independently so some could have different information than others. If you check your score regularly you could find misleading or false information about you that could affect your ability to borrow money when you need it. Now you need to check this out and get it dealt with before it becomes a bigger concern.

Most of the time, any discrepancy will be a mistake on their part. Communicating with the bureau concerned and talking to them about it can correct this.

Unfortunately, sometimes an ‘error’ you find could be identity theft. Here it is imperative you contact all the bureaus concerned and the fraud squad immediately.

An alert will be placed on your file, which lets anyone checking your score know you have been a fraud victim. This alert will also inform you when lenders are looking at your files. If you are not requiring any financial transactions then it could be the identity thief is trying to obtain a loan in your name.

An alert will usually last between 90 to 180 days. But you can get this extended if you request it. With the alert in place a lender can tell that the person trying to obtain the loan is not you and will decline it.

If you do not regularly check out your credit score you are placing yourself at risk. Your personal finance basics knowledge should be used to remove this risk.

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9 Tips to Save Money – Personal Finance Basics

There are plenty of simple tips to save money when dealing with personal finance basics. Some are slightly more time consuming than others but despite that fact it is completely worth what time it might take. If you only follow one or two of the following tips you could save hundreds of dollars each year.

REQUEST FREE SAMPLES:

There are plenty of websites that offer free samples for every day products. Even the huge stores such as K-Mart or Petsmart have great opportunities for everyday people to get free items. These items range from skin moisturizers and shampoos to frozen food or bathroom products. Another option is to visit a manufacturer’s website to find those free samples on brand new items. If you need something, type ‘free sample’ into Google before you go to the store to purchase it. This is the beginning of mastering personal finance basics.

CHANGE CREDIT CARD SPENDING AND HABITS:

Credit cards can be wonderful but can be dangerous. With high interest rates and monthly fees, credit cards may wind up costing you a lot more in the future than you expected.

My rules of thumb:

- always use cash unless its for a major purchase

- be certain you are able to pay for the item before you use a credit card

- be sure you can pay the balance of your credit card

AVOID IMPULSE BUYS:

Everyone has had to push a shopping cart through the aisles of the grocery store and the moment we get to the check out we have double the amount we planned to get. Always, always, always create a shopping list, follow it and never purchase anything that’s not on that list. This should include any type of shopping like wardrobe, food or entertainment. Retail outlets are mapped out specifically for impulse buys with candy racks and gum within easy reach. Make your list, check it twice, and follow it.

SHOP THE SALE RACK:

This is another personal finance basics rule but don’t confuse this with an impulse buy. You have your list and know what you need, so check the sale display before you shop. Chances are you will locate that said item on sale and pay half the usual price. Food stores operate the same way. They usually over order products and are forced to run unadvertised specials on overstock items. Just make sure the item is on your list.

SAVE YOUR HARD EARNED MONEY:

This may be the hardest thing you have to do when money is tight, but it just might be the most critical step to take. According to the book ‘The Wealthy Barber’ you should save ten per cent of your paycheck every month. That may not sound like much but it will add up rather quickly and if wisely invested it will assist your retirement down the road.

SAVE YOUR CHANGE:

This may sound a little silly but this little tip is a great one. How? Because in some way’s it’s like found cash. After you come home from the store put any loose change into a jar. Each month or every couple of months count up the change, roll it up and deposit it into your bank account or reward yourself to a well deserved evening out. These are the personal finance basics you learned when you were very young.

BUY IN BULK:

We’ve already touched on shopping but I have another shopping tip that mostly applies to buying grocery’s. Buy in bulk. If you drink a lot of fruit juice and you see that it is on sale at half price, buy four rather than two or purchase the 24 pack of water instead of the smaller 12 pack. This may seem easy but plenty of people do not make bulk buys on every day products.

CLIP COUPONS:

I know this might make you feel like your grand parent but this is another great way to save plenty of cash. It only takes a few minutes every week and you can end up saving hundreds of dollars each year on items you were already going to buy. Go through your local newspaper or check online for some amazing coupons.

RECYCLE PLASTIC BAGS:

This is a wonderful way to ‘Go Green’ and it will save you money too! Lots of stores are now making you pay as much as 10 cents for plastic bags. Chances are you have about 1,000 hidden away in your closest already. Couldn’t you just bring them to the store and use them again? Another way to recycle and save money is to use those plastic bags from the store in your garbage under your kitchen sink or in the bathroom. You don’t have to spend $5 each month on a box of kitchen garbage bags when you already have them at home.

These easy tips will save you lots of money and they are simple and might even be fun. It’s always rewarding to know that you have started to take the first steps to becoming free from debt. By carefully following these tips to save money you are one your way to understanding the personal finance basics all of us should know.

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Electricity Saving Tips – Personal Finance Basics

Don’t Let Your Electric Bill Zap Your Budget

This post will focus on your electric bill. Electricity can be one of the biggest expenses that you will discover as a home owner. Here are a couple of tips that will help you be more energy efficient in your home. I will go over the personal finance basics regarding one of your larger utility bills. Hydro bills can be very high in the summer, with air conditioners raging. If you’re in the north and use baseboard heaters, you will discover that hydro bills skyrocket in the winter as well. Here’s 3 tips to help reduce your hydro bill.

Are You Using that Computer? – I work at a place where the computers are always on. They don’t even get turned off on the weekends. A little research in personal finance basics will reveal that a computer uses as much electricity per hour than a 14 watt compact fluorescent lamp for a full day. My work’s last hydro bill was $700 for one month. They could lower their expenses by at least 27% by switching the computers off for evenings and weekends.

Is Your Home Energy Efficient? – Easy tasks like putting a plastic heat barrier on your windows in the winter can significantly lower heat waste, and for goodness’ sake, keep your door shut. Ever heard your parents say “I’m not paying to heat the outside?” Sounds like they understood a common sense thought to personal finance basics. find other ways to make your home more energy efficient. You’ll not only leave less of an environmental footprint, but you’ll save tons on hydro.

Sometimes I Swear We Live in the North Pole – When you are looking to further your practical skills in personal finance basics one way is to look at how much energy your air conditioner consumes and reduce it if you can. For instance, try to use a fan instead of the air conditioner. Another excellent way to reduce consumption is by setting the thermostat up by 2 degrees. With heating for example, if you lower the heat by 2 degrees you can reduce the home heating costs by 5%.

I hope you’ve found these tips useful. I’ll mention it again, that as a financial consultant I teach a lot of personal finance basics to people looking to reduce living expenses. It’s important to maintain a comprehensive budget so you know where your living expenses are and to motivate you on ways to reduce those costs. If you haven’t searched Google for budget tools yet, you can now, or try the one in our resource link. See you in Part – 4.

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Emergency Fund Accounts – Personal Finance Basics

As a financial consultant and I have coached a lot people as to why emergency funds are critical. In an earlier post you learned crucial personal finance basics with regards to creating an emergency fund like budgeting, goal setting and automation. Today I’ll discuss a few quick tips to help you pick where to invest your emergency fund.

Convenience – If you are like lots of people, you want to make saving into an emergency fund as fluent and simple as you can. Coaching personal finance basics has also shown me that if it’s not easy, chances are it won’t get done. You likely have a checking account. If so, you probably have a savings account in place too, if not you could open one with your bank on the Internet or at your branch. I recommend using this account to park your emergency funds. Chances are the interest rates aren’t great, but it’s an a simple account you probably have, or you could set up in a jiffy.

High Interest Savings – You shouldn’t worry too much about the interest rate you get with your emergency fund as it’s considered a short-term investment. A personal finance basics way of thinking is that you’ll probably use the fund within the next five to seven years, it’s short-term. ING is avery popular savings vehicle, as is PC in Canada. There are plenty of high interest savings accounts available to create online, just be careful of their fees, terms and conditions and legitimacy. Money market funds is one other choice, and can even provide higher interest than savings accounts, but they aren’t guaranteed. I have personally used ING for my emergency fund and think its excellent.

Liquidity – How quick can I get my money? Another important factor you need to think about is how accessible are your emergency funds. The simple rule with this is that it should be available by less than five days at the very most. You should try to get a fund that could pay out your money within 24 hours of when you need it. The personal finance basics question to ask yourself with this when choosing an account is “Can I get the money when I need it?”

I hope these personal finance basics regarding convenience, high interest savings and liquidity will help you make your emergency find into a reality. Check our resource link for free budget spreadsheets and other financial calculators to give you the head start you may need. We go more in depth in our e-book as well. The best tip I can give is to get it started. Even if you only got a 0% rate of return, you will still have money tucked away for those unexpected expenses that you wouldn’t have otherwise.

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What Is The Cost Of A Physician Disability Insurance Cover?

Owing to the fact that the resources and assets at people’s disposal are shrinking day in day out, human beings have learned to be careful when it comes to spending. They will always remember to ask the question of what the cost of something will be. There are high chances that some people are interested in taking physician disability insurance and are wondering how much it will cost them. If you are one of them then keep reading to learn more.

Sincerely speaking it might not be possible for and individual to quote the exact cost of taking such a cover. Any person who comes up with such a figure might be wrong. They will be wrong because the conditions surrounding a single person might not be the same conditions surrounding another person. To determine therefore the amount of money an individual will be expected to part with will depend on some aspects which include the following:

Age of the insured

Once a person makes up their mind to go for Physician Own Specialty Disability Insurance then they should stay informed that their age will determine the amount of money they will have to pay as premiums. In most cases the amount of premiums increases as the age advances. This means that the younger a person is the cheaper their policy will cost.

This should be a motivating factor to the young people. They should try as much as possible to go for these covers because if they wait longer the price of the policy will go high. Taking this advantage can be a wise decision in one’s life.

The gender of a person

In most cases people forget thinking about gender of the person taking the cover. In general, the females have high chances of facing the risks insured against. This will imply that the higher the chances of getting impairments the more amount of premiums an individual should expect to pay.

Those people who are of a masculine gender will purchase the cover at a relatively lower price compared to their counterparts of the other gender.

Health history of a person

The health history of an individual can tell us more of what we should be expecting. Those people who have been having several ailments or those whose family tree is known for certain defects should be prepared to part with large sums of money. These health complications have high chances of making an individual suffer from a risk insured against.

An individual with a clean history in health issues should therefore be prepared to pay less amount of money in terms of premiums.

The type of policy

The insurance companies offer a wide range of policies. This means that when making a choice an individual should make sure that comparisons have been made. For instance an individual who gets attracted to the Guardian policy should be ready to pay a lot of money because this is the most expensive policy. So when taking Own Specialty Physician Disability Insurance the type and nature of policy taken is greatly vital to a person.

There is no way all these aspects can affect an individual negatively and therefore there is need of getting worried of things like one is a female, they are of an advanced age, or they have bad reputation in their health history all shall be well.

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Why Should One Go For Professional Disability Insurance?

How does it feel when a person is employed, is working and all is going well? They might be tempted to think that they will remain in such states for a very long time. The most important thing an individual should begin by appreciating is that the events of the next day, next hour or even next minute are uncertain. This is why a person should make sure that they have taken necessary precautions so that they can continue enjoy living on this earth.

It takes a few minutes to contract an impairment. To make the matters worse, there are some impairments which might make one unable to continue working. For instance, think about a news reporter who gets involved in an accident and ends up losing all their legs. Probably they will no longer be able to attend events and report as they used to do before the occurrence took place. This stretches to other several professions and therefore taking precautionary measures is what an individual should plan for. Some of the reasons as to why taking Own Occupation Disability Insurance policies remains benevolent to an individual include the following:

Ensures financial security

Every human being who is employed today has dependents. They also depend on what they earn for their daily upkeep. It might not be easy for such a person to survive and continue supporting the people they were supporting after an impairment given that they will no longer be employed. An individual who had taken a Professional Disability Insurance is assured of a happy living because they will be compensated.

There are some companies which pay up to 75 percent of what an individual used to earn. Even though an individual will be receiving less than what they used to earn, the most important thing here is that they have something to survive on. It can be frustrating for an individual who has no money, no employment and cannot work but has bills to settle.

Allows one time to transit to another profession

There are various types of professions across the world. Once an individual becomes disabled such that they cannot continue performing their work well, they should think about changing their profession. For instance in the case of a reporter, they can become an editor.

In most cases some training will be necessary to allow these people take up new roles. The compensation they receive will help them to go for such training activities. An individual who has nothing might not be able to change their profession because they lack moral and financial support.

Grants one mental solace

Think about someone who is bedridden because of an accident. This person has no food, no money and they have exhausted their savings. Such a person will have to survive at the mercy of friends, relatives and other well-wishers. At some point they might be taken as a luggage to those taking care of them.

When a person mentally surveys all these conditions and realize that it was not their mistake, they might contract mental frustration. The only way such a person will be healed is by getting an assurance that they have support. There is no need of waiting for an assurance that might never come. One has to go for Professional Own Specialty Disability Insurance and all shall be well with them.

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Get The Best Americas Doctor Disability Insurance

It is very important for doctors in America to have disability insurance. Unlike many other professions they work in an area of high risk. No doubt they are well trained educated and are working 40 hours a week, most of the time on their feet.

They need insurance to take care of any eventuality in their life wherethey fall ill and have to take rest. It is become extremely difficult for physicians to get disability cover in their own specialty. There is work being done at Doctor’s Disability Shop so that doctors can avail of a discount to get disability insurance for their ‘own specialty’

How Does Own Specialty Insurance Work?

Doctors are given the opportunity to choose their ‘own specialty’ disability insurance plan that is ideal for them. Once the doctor has decided on the plan, it is easy to apply since it is done electronically and does not require any paper work.

Disability Pro protects your income so you can provide for your family when you are faced with a disability. All that the physician needs to do is get the right amount of coverage. Disability Pro helps you to meet your financial needs when you are disabled and cannot take care of your patients. You can get remuneration which is equivalent to your own specialty.

Physician disability insurance covers the physician in his own specialty. The insurance stays with the physician even though he changes his employer. He can get up to $15,000 in monthly benefits. If it is catastrophic disability the doctor can get nursing at home and health care. All physicians get 15% reduction while AMA members get 35% reduction.

Physician’s Disability Insurance Policies

There are different types of disability insurance policies that physicians can avail of. They are Mass Mutual, MetLife, Berkshire Life (Guardian), Principal, and Union Central Life. Many of the provisions are same in each of the companies. But there are a few differences which may help to choose the particular insurance company.

It is very important to classify the medical specialty to determine the premium rate. The higher the occupational classification assigned to the medical profession the lower is the premium rate. Different companies may assign a different class of occupation to the profession which might change the rate of premium. The financial planners or the agents are in a better position to advise the best insurance company to insure as per the medical specialty.

The Best Physician Disability Insurance

Like all professions doctors also take precautions to see that health and life insurance are taken care of in their life and try to invest wisely for a good retired life. But many times they do not take into account a disability or injury.

The chances of a disability and injury are quite high and at such times it is difficult for social security, worker’s compensation, insurance and savings to meet all the bills. Disability insurance is a necessity. You have to know what the coverage that the disability insurance provides and the policy that is not taxable. The agents are the best people to guide you in taking the right policy.

So, if you are a physician who wants to take disability insurance contact the agents to find out the best policy for you.

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Why Do You Md Own Specialty Disability Insurance

When it comes to insurance types that are usually very much ignored, disability insurance tops the list. This is due to the fact that you hardly see people paying for disability insurance as they are more concerned about auto insurance and the more popular type of insurances. Generally, you might not know about habits you indulge in or the fact that your health is deteriorating regularly until you are suddenly down. Furthermore, there are also a number of sudden disasters that could suddenly make an individual disable in an instant, especially accidents. This is apart from the unpredictable nature of the body as illness or disease that could lead to disability can attack an individual in an instant.

Md own specialty disability insurance is a type of insurance policy that covers a good percentage of your monthly income from your job in the instant that you are suddenly unable to do any time of work. Overall, you will be protected in terms of your finances, should you become unable to work. Most people find it difficult thinking about disability as nobody wishes to be disable. This notwithstanding, there are several people who due to one disability or the other cannot work. With a disability insurance, you will be protected from having to face serious financial hardships if you suddenly become disable. Here are some reasons why you should have a Md own specialty disability insurance.

Income Loss

A major reason why you will need Md own specialty disability insurance is as a result of income loss. If you are losing your source of income due to disability, you will be getting some paid sick leave. However, the expenses on diagnosing what is wrong with you, treating it and recovering from the disability could be huge. Furthermore, your monthly expenses such as feeding and toiletries amongst others will continue. Even though your medical bills are to be covered by a medical insurance, you can still become stranded due to the other expenses. Furthermore, when your source of income is completely cut off due to disability and you have bills to continue to run, own specialty disability insurance can go a long way to help you cater for your bills.

Medical expenses

Even with your medical insurance, the increasingly expensive cost of healthcare can be a major challenge. You will need to continuously pay bills and buy drugs all through the period you need treatment and recovering. There are cases where a therapists or other specialist might be required to speed up your recovery. All of these require a lot of money. The transportation to and fro the hospital for check-ups will also require spending more money.

Other expenses

Miscellaneous expenses will also come up while you are suffering from your disability and unable to do any paid job. Having enough money to still sometimes make yourself happy such as going for dinner and even attending birthdays and other celebrations with friends, will go a long way to save you from a stressful and boring life, during your period of disability.

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Disability And Disability Insurance For Doctors

Disability has been described as a condition in which the sufferer is unable to perform optimally the normal day to day functions which they used to be involved in. For doctors disability is a condition in which they are unable to attend to their patients any longer. They cannot carry out surgeries or go to clinic and all the other numerous activities which they are usually involved in.

During the course of work and over a period of time, it is possible for a doctor to develop some kind of disability or the other which can seriously impair the functions of the doctor. Doctor Disability Benefitsdescribes the way which insurance can be used to ensure that doctors do not suffer unduly in the case of any eventuality and they get disabled and unable to work.

Some of these disabilities include

1. Cardiovascular diseases and diseases of the circulatory system- this might be due to the fact that long hours are spent standing up and working. It has been noticed that a lot of doctors suffer from heart diseases and circulatory system health challenges. When these sicknesses impair and affect the normal day to day function of the doctor then his ability to function and attend to his clients is impaired.

2. Musculoskeletal illnesses- the long hours of standing and not sitting down can also affect the bones and joints of doctors. This can lead to illnesses such as rheumatism, arthritis and the likes. One problem with these illnesses is the amount of pain which sufferers go through over the course of the illness. This suffering makes it most of the times impossible for doctors to attend to patients and perform surgeries.

3. Mental disorders- doctors are also human like the people they treat and so they are also prone to suffering from whatever illness which humans suffer from. One of such problems is psychiatric illness. Some doctors while on the job have been seen and reported to have exhibited erratic behaviour. When this wrong behaviour was brought under scrutiny, they found out that the doctors were actually suffering from one mental illness or another ranging from plain depression to schizophrenia and even manic depressive disorders. All these illnesses will certainly affect the doctor’s ability to function optimally and properly. In such an instance such a doctor might be asked to stop working.

All the illnesses mentioned above and much more can deter a doctor from being able to continue to function well in the capacity which is expected of him. When a doctor suffers from any of such disabilities, it will be a thing of sadness if such a doctor does not have an insurance plan. A disability insurance plan is a kind of insurance plan. If a doctor takes out a policy which has disability insurance as the thrust of its focus, such a doctor is better placed to ride out the waves of life which such disability has thrown at him.

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