Money Management

Don’t Set Yourself Up for Financial Devastation

Did you know that high medical bills are one of the top reasons that people file for bankruptcy.  Medical expenses can add up.  They can quickly take you from a decent financial position and send you to the poor house.  If you do not have enough insurance, you are playing fire and could be putting your financial future at risk.

Can’t Afford Insurance?

Insurance is expensive.  If your job doesn’t offer benefits it is easy to think that it is a better financial decision to skip the insurance premiums.  You may not have any problems.  However, make sure you ask yourself what you would do if something bad were to happen.  Sure, you may have enough savings to cover a trip to the doctors but could you cover a broken arm, a burst appendix or something worse?  If you don’t have insurance you are putting your finances at serious risk.

What Are the Options?

If money is already tight, adding an expensive insurance policy may not be an option.  Look into low cost insurance options to try and find a solution you can afford.  Often insurance companies offer more affordable coverage if you are willing to have higher co-pays and deductibles, this is the amounts you are responsible for paying.  While these options will not make going to the doctor inexpensive, they may protect you from having to file for bankruptcy or losing all of your savings to medical bills.

Review and Modify with Time

As your financial situation improves, so should your insurance coverage.  Insurance is a way of protecting your assets.  When you have fewer assets, you don’t need as much insurance.  However, as your wealth begins to grow, it will be important to adjust your insurance coverage.  It is important to regularly review your insurance coverage and needs.  For example the legal minimum for car insurance in some states won’t even cover the cost of replacing a 20,000 dollar car.  Since most cars are worth more than that, you could end up in a bad situation if you only have the minimum coverage.  Personal liability insurance is also a wise choice for those with substantial assets.  This protects you if you are ever sued for more than your insurance will cover.

Protect yourself by making sure you have adequate health, life, auto, home and personal liability insurance.  Since money is always an important factor to consider, weigh your coverage options by your level of risk and choose the best coverage that you can afford.  While it may be miserable to spend hundreds each month on insurance, it is a better choice than losing everything you have worked to achieve.

Do you feel like you’re covered enough?

Investing

An Introduction to Forex Trading

Forex trading is an investment vehicle that primarily focuses on taking advantage of currency fluctuations in the world market. Because of the inherent volatilities of currencies, forex trading is often considered one of the riskier forms of investment. However, recent advances in technology particularly in the improved accessibility to information and news that influence currency fluctuations have opened up forex trading to ordinary day traders instead of being solely in the domain of large financial institutions like corporations and national and central banks.

In a nutshell, forex trading is conducted via a foreign exchange market. The rationale behind the forex market boils down to the need to exchange cash in the conduct of various transactions. For example, suppose are based in the UK and you operate a small home-based business that sells unique artifacts from China for decorative purposes; when you purchase items from China, you need to pay for the artifacts in Chinese Yuan because this is the accepted currency there. You now have to “exchange” your British Pound in order to have the Chinese Yuan you need to pay for your goods.

Translating this into the global stage creates the forex trading platform where investors buy and sell currencies depending on the volatility of the currencies involved. For individual investors, these exchange markets include the spot market and the futures market. A spot market is where investors buy and sell currencies depending on the current price.

Transactions in this market require that you purchase a certain amount of currency and pay with another currency. You earn if, over the course of the trading day, you can manage to sell your acquired currency at a much higher value because the price for that currency went up. Conversely, you lose money when you buy currency which then devalues and you sold it at a lower price.

Forex trading in the futures market is more volatile and risky than spot trading but also offers considerably bigger payouts. In futures trading, the investor tries to anticipate where the exchange rate for any currency pair goes up or down after a certain period of time. If he or she gets it correctly, the payout can be as much as 85% of the initial investment; if he or she gets it wrongly, then payout can be zero.

Of course, the whole nature of forex trading is so much more complicated than what these descriptions can offer. Success in forex trading requires experience, whether on the spot or future markets, to be able to learn how to read the trends and news that influence the market. If you are up for it, take the time to study and learn so you can successfully put your money in foreign exchange investments. 

Money Management

Easy Ways To Save Money During The Holidays

Holidays

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The holidays are one of the hardest times to save money or indeed make money. With all of us taking time off to spend with our families, the option for earnings decreases. Spending can get out of hand at this time of the year, especially if you have a family.

If you are in need of making some savings this holiday season then believe it or not, it can be done! Read on for your way to turn the most expensive time of the year, into an easily manageable event and stay debt free.

Saving on festive food and drink buys

Christmas and thanksgiving are expensive times to buy food. I swear that all of the companies put their prices up, ready for when you really need to buy their products!

You can cheat your way into making savings on food and drink this year though, simply by shopping around or more importantly, shopping early.

They say that the early bird catches the worm. Well, if you want the biggest, juiciest worms (or something far less disgusting!) for your festivities then you need to start thinking in advance. Shoppers have to be savvy these days in order to beat the big companies.

Products with long date stamps can be bought well in advance when they are on offer, or you could think about buying in bulk. Reserve this option for items that you use a significant amount of, and the savings will soon add up.

Curb your holiday decoration spending

You can save money on holiday decorations by buying them now. Get them in the sales, a year in advance and store them away. This will mean less spending and less stress next year.

If you are good at crafting and design, you could make your own decorations. This is something that all family members can get involved in. You could even sell some of your designs at local craft fairs if they are good enough. This would bring in a little extra money for luxuries, or to save.

Gifting on a budget

Buy your gifts during the summer months. Hunt for closing down sales and last of the line products. If you make use of store coupons and savings cards, you can often reduce the cost even further.

Keep a list of everyone that you need to buy gifts for, with you at all times. That way, no matter what time of year it is, you’ll be able to spot a bargain and tick them off your list.

Looking at ways to make a little extra on the side

If you are looking at ways to make a little bit extra here and there then you can take note of Avatrade’s bonuses. If you read up on your forex trading knowledge, this could prove to be a good way to make a little extra for the holidays.

Saving for next year’s festivities

When the stores have their sales at the end of the festive season, now is your time to strike! Go in armed with an extensive checklist and buy only the things you have marked down.

You can create a comprehensive list on your phone these days using one of the many available apps. This is easier to keep track of, and you can share it with other members of your family so that they know what has been bought and what is still left to buy.

Just remember to be selective. Don’t let the sales mania cloud your judgement, or you could wind up buying things that you really don’t need!

Debt Management

How the Student Debt Loan Forgiveness Programs Work

More and more people are flocking to earn their higher education all with the thought that they can earn better incomes and provide easier lives for themselves and their families. However, many of these same folks are taking out student loans to achieve this goal. Once they have graduated, the amount of debt can be crippling and nearly impossible to get out from under. As a matter of fact, many find that they can’t even qualify for a home or car loan because on the enormity of their student debt, leaving the newly graduated student wondering if they would have been better off going the non-college route.

What They Don’t Know: There is Help

In this case, what these folks don’t know can definitely hurt them. There are millions, perhaps billions, of dollars available to help college graduates who are underwater in their student loan debt. The statistics are inconclusive, but the Consumer Advocacy Bureau believes that as many as one in four Americans may qualify for student debt forgiveness, because that many may actually work under the title of ‘public service’ without even realizing it.

Public service is typically thought of as firefighters, police officers, teachers, and the like. However, a person who works as an accountant with a non-profit agency may actually be considered a public servant in the eyes of loan forgiveness programs.

How Student Loan Forgiveness Works

Student loan forgiveness programs can actually completely erase some, or even all, of student loan debt. Those who do not qualify for forgiveness may still be able to utilize consolidation or specialized repayment options. Those who work in certain fields qualify easily, and these can range from the military to volunteers to education to nursing. Really, the qualification parameters are quite broad, and are worth checking into.

Keep in mind that utilizing loan forgiveness may affect income taxes for that year. For instance, if a person were to receive $3,000 in student loan forgiveness they may be required to file that $3,000 as earned income on their tax returns. Although the benefit of eliminating that debt, and yes it is eliminated, far outweighs having to pay a little more than expected in taxes.

With so many people struggling beneath the heavy burden of student loan payments, it would seem that there would be tons of folks checking into these forgiveness options. Sadly, many people aren’t even aware that they exist.

Money Management

Click change – currency quickly

If you need to make an international payment of a significant amount, it’s very likely that you can save money by going to a specialist online exchange company. It’s certainly easier than doing it the old-fashioned way – queuing at a bank’s foreign exchange desk. You don’t even need to wait on the phone with an international currencies broker. Instead, you can do it for yourself at the click of your mouse.

With companies like HiFX and other similar companies which have invested in the technology necessary to enable quick and easy international money transfers, an account is quite quick and easy to set up. Once you’ve done this, you can deal immediately wherever you have access to the web. This doesn’t have to be on your own PC as there’s no need for specialist software.

But the main benefit of changing money in this way is the rates you should get. HiFX, for example, continually has an independent company check its exchange rates against the mainstream building societies and banks to ensure it is always competitive.

Such companies are able to keep their overheads to a minimum thanks to their previous investment in technology. Also, with a large turnover of foreign exchange trades, these companies are able to keep their margins between the buy and sell prices very tight – and to pass these savings on to us. This, in turn, means they get more business still, which means the margins can be tighter still.

The main benefits from such companies are for people who have a need to exchange money regularly. So people with a property abroad, or who take regular trips for business or pleasure – or companies s paying staff overseas etc., can all benefit hugely. But even for small one-off transactions, it can still pay you to have an account. For transactions above £3k, there are no charges whatsoever, whilst for lesser amounts there’s a one-off flat rate charge of just £9. And it’s all quick and easy.