Month : October 2013

Insurance

The Quick Facts of the Different Types of Life Insurance

Life insurance is not a very fun thing to think about. When you think about life insurance and what it actually means, you are paying for a policy that will pay out money in the event that you die. It is sort of a morbid concept when you think about it. The key takeaway though is that a life insurance policy can make it easier for you to rest easy, knowing that your family will be well taken care of in the event that something terrible actually happens to you.

So do you need life insurance? Whether or not you need life insurance most likely depends on your personal situation. If you have no dependents, you most likely do not need life insurance. If, however, you are someone who has a family with a wife or husband, children, and so on, you may seriously want to consider it. Here are some tips on the types of life insurance available.

  1. The first type of life insurance that we will talk about is known as term life insurance. Term life insurance is basically a death benefit that has no cash value. If you have term life insurance, you will end up with payments being made out to your dependents on your behalf in the event that you pass away during the effective period of the policy. Term life insurance and the proceeds associated with it only come into play at the time of your death.
  2. Whole life insurance is a bit different from term life insurance. The big difference here is that with whole life insurance, it is more of a traditional life insurance policy. Over the entire life of the whole life insurance policy, you will pay a flat premium, which will be effective until your death. Once you pay the premium amount on the policy, you will pay into the policy and build up a cash value. When you actually pass away, there will be both a death benefit as well as a cash value benefit that will be paid out. Whole life insurance can be more expensive, but it can also mean your dependents are in a more comfortable position.
  3. Variable life insurance is different from the others and is also the life insurance policy that comes with it the highest costs out of all of the different types of policies. With a variable life insurance policy, you are paying in money in the form of your premium that builds up a cash reserve. With this cash reserve, you basically invest money that will either build up and grow at a percentage rate of return over time, or decrease depending on the performance of the investments. This can be risky, as you can lose money on the policy just as fast as you actually take in money.
  4. A universal life insurance policy is always a good option as it is a mix between term life and whole life. The administrative fees that go along with this type of policy are higher than the others. The real benefit here is through the flexibility that comes with it, as you can vary the amount of your payment that goes to your premium and to your actual cash buildup.
  5. When thinking about which policy to buy, you need to consider your situation, your health, and what you want your dependents to get out of the policy in the end.
  6. When thinking about the costs of a life insurance policy, if you are a healthy 30 year-old man, a life insurance policy will cost around $300 or so per year for term life insurance.
  7. Life insurance can be a very intelligent investment to save money in the event that you cannot care for your family.

Life insurance policies are very powerful tools that can be used in intelligent manners to help those that it protects and benefits.

Author Bio: This article was written by Larry Smith of Obares.com an informational website that provides great articles on loans and real estate.

Home Ownership

How NOT to Apply for a Home Loan

 

Home loan

Here’s the scenario: you’ve just watched a home improvement show, and you’re not only feeling confident about your DIY skills (even though you’ve not touched a power tool in years), butyou’re ready to march out and buy a home. You’ve cruised the listings that Google provided you, and already have a home just around the corner picked out.

That’s a great start – we applaud your determination. Now, let’s work on getting you a home loan, since you probably don’t have all the cash available under the mattress.  Here are 5 things not to do to get started.

Have no deposit

Most lenders require you to have at least 20 per cent deposit for a first home approval, and depending on your credit history or the home price, some require a deposit of up to 30 per cent. Home loans with a deposit below 20 per cent, normally requires you to pay Lenders Mortgage Insurance (LMI), which just adds to what will already be a large mortgage payment each month. 

Have lots of outstanding debt

Lenders like to see that you can make your repayments. This means you should not have outstanding debts, like credit cards or personal loans that can affect your borrow-ability. Be prepared to supply bank details and income information that proves you are not trying to live beyond your means.

Don’t check your credit history

If you don’t know your credit history, it can’t hurt you – right?  Wrong: your credit will be one of the first things a lender checks, and if you don’t know what you’re up against, how can you defend yourself?  It is always a good idea to do a history check and look for any mistakes or items that you can fix. 

Quit your job

You’re probably thinking about quitting your job, since you’ll have all those DIY projects to work on. That isn’t the best idea, if you want the bank to give you a loan; banks want to see a consistent and steady income level, and if you have no proof of how you’ll support yourself without a salary, then you will not be going home with a cheque.

Don’t worry about the responsibilities of homeownership

Home ownership looks glorious on TV, so there is nothing to worry about, right?  Not exactly. Owning a home is not just a major lifestyle change – it is also quite a major responsibility, because you could end up in court or bankrupt if you can’t keep up with your payments.

For more information on how you can maximize your chances of securing a home loan, speak to a mortgage broker, such a Mortgage Choice, to help you find the right loan for your personal circumstances.

Money Management

The Path To Financial Freedom: Start Counting

the year

Be sure to check out the first part of this series Get Your Mind In The Game

In order to become financially free you need to know where you are right now. You need to know how much money you are spending each month and on what you are spending it. If more is going out than coming in then you need to do a 180 to become financially healthy.

You can’t possibly know how much money you have going out unless you count it. It’s like those contests that ask you how many M&M’s are in the jar. Sure you can estimate it but you’re probably going to be off by 20-30% if not more. That’s a lot that you don’t know about. And how can you find out where you can cut back if you don’t know where it’s going? Then the answer is obviously that you have to count it. It’s not as bad as you think and it will have a major impact on how you view spending once you become aware of it.

These are a couple of ways to keep track of your spending:

Carry A Pad

Writing down in a small paper pad after you purchase is a not so great way of keeping up with your purchases because I’m sure you’ll be in a hurry after some of those purchases and forget to write them down. However if you can remember to write it down after each purchase you will have a very accurate picture of your spending.

Update From Online Balance

When you use a debit card your purchases usually show up the same day. At a point in time(end of the day/week/month) sit down and view your purchases from your online account and write them down and place them in a category.

This is the way I do it because most of my purchases are with my card. If I do pay with cash I can see where I took the money out at an ATM and can assign it because I took that money out for a purpose.

Automatic Tracking (Almost)

You can use an online program like Mint.com or a desktop program like Quicken to automatically keep track of your expenses. This is a great way to do it if you don’t have any time available to do it the other ways. The down side is that it doesn’t always categorize things the way you want to so you’ll have to take the time to categorize some of your expenses. But overall it does do a great job of keeping track.

As you can see there are several different ways to keep track of your money. If you don’t like any of these ways then make something up or mix and match. As long as you work towards seeing where your money goes it doesn’t matter how you do it.

Personal finance isn’t a one size fits all thing. Every one is different so find out what works for you. In this case find out what works best for you to keep track of your spending.

I just want to emphasize that actually being aware of how much you spend each month will change your life. Just think about what it would be like find out the world was always round when you thought it was flat. Imagine what knowing that information would allow you to do. It would make you expand your horizons and do things you never thought you could do.

Being aware of your money will allow you to control it so you can do things you’ve always wanted like a long awaited vacation.

If you don’t do anything else at least do this step of tracking your spending because it will make a world of difference.

What was it like when you first started to become aware of your spending?

Check out part 3 of this series Boundries

 

Passion

Change Now And Change Often

As I go through the journey of life, I’ve learned a lot of lessons. One of my most recent lesson is that change is good and it is ALWAYS for the better. Maybe not the near future, but eventually you’ll look back and see it as a good change.

Let me just tell you a little story about how I learned this lesson.

Changed was forced upon me a little while ago when I was let go from my day job. Previous to that, all I was thinking about was 1 thing. That one thing was turning this blog into a full-time gig.

At the time, I wanted to do this because I was tired of what I was doing in my day job and I wanted more in life. So as I said before, I wanted to change this blog from personal finance to personal passion. I wanted to help people find their passion and learn to make a living from it.

I’ve broken away from wanting to teach people how to budget, to teaching people how to fish (metaphorically speaking).

So that change was for the better because it’s something I’ve decided I’m more passionate about.

Then I was let go from my job, which was an unexpected change, but once again a change none the less.

From that change my ultimate goal is to not work a 9-5 again. Yes it’s not something I have a lot of support on and it does stress my fiancé out a little bit. But this is something I want for my life and I know I can do it.

The whole time I’ve been working on this blog, I’ve been learning new things about creating and designing website, how to get them to #1 in Google, and making money off of them. That’s my passion now. I love this stuff, and I’m getting really good at it.

Just recently I’ve entered a whole new world of SEO(Search Engine Optimization) and I love every minute of it. I’ve delved deep and I’ve changed my outlook on this blog.

Financially Poor isn’t going to be my money maker, or my full time job. It’s going to be where I let out my passion. As my passions change, so shall Financially Poor.

My money makers are going to be a  bunch of blogs that aren’t going to have any relationships what so ever, that make me money with only a little maintenance. But I love making them and they’re going to make me money so that I can do more of what I want.

A few weeks ago, I decided to start a coaching program because I was desperate for money since I just lost my job. But Just recently I’ve realized that I don’t want to coach people to find their passion.

So I’ve canceled that and I’ve changed my focus of coaching on helping people get into creating a website and making money from it. I’m a better technical person than a motivator. I know how to do stuff and get it done. I don’t know how to get you motivated to do it other than pointing a gun at your head. So now I’m an SEO/Website creating/Money making coach, Hire Me :)

Is Financially Poor going to be another making money on the internet blog?

Yes and no. I’m not going to regurgitate the same stuff that you can find on the other blogs. Everything I post here is going to be from my experience and isn’t going to be about “how to make a post go viral” and stuff like that. That can be read anywhere and I hate having 20 posts in my feed reader about how to do that.

I’m going to talk about stuff without the hype. I’ve never been good with hype and it’s not really my passion, so I’ll leave that on the sideline.

Is Financially Poor going to be all about making money?

No, it’s going to be about doing what you want in life…and making money.

How often am I going to post?

I’m going to go for Mon, Wed, Fri, and Sat, With Mon and Friday being new posts from me, Wed being a guest post, and sat being my Kick-Ass Reads. There will be posts in between every now and then but not on a schedule.

It’s not being lazy to do what you want, it’s being happy. Like I’ve said many times before, life is too short to not be happy.

Do what you want and do it now. Eventually you’ll be doing it anyway (retirement), so why wait? You’ll have less time and energy to realize your passion and enjoy it when you’re old. And if you are old now, there’s no better time to start because by the time you’ll be ready again, you’ll probably be dead.

I did kinda forget to tie everything into the title, but my point is that your passion will change as you explore your current passion. So you will Change Now and you will Change often

So stay up to date with all of my knowledge and passion by subscribing by RSS or Email. I’ve already started spreading my knowledge of “building websites to spread your passion and make money” in my free Do What You Want eCourse. Be sure to sign up for that and start becoming a Free Bird.

And if you want coaching about how to Start up, Make better, Make more, or anything else about a website(s)/SEO, just shoot me an email in the contact me section and we’ll see if we can work something out. I never hold back.

So I hope you enjoy what Financially Poor is going to bring you and I hope you learn a lot.

Always remember to Live Your Passion

What do you think about That?

Let other people know that passion does change by tweeting and Facebook sharing this post.

 

Politics

The Basics of Government Tenders

When it comes to procuring services or products in government agencies, one of the most important processes that these agencies need to go through is the tendering process. The tendering process requires interested suppliers to submit a formal offer complete with the scope and price, like Cordell government tenders, for evaluation before the contract is awarded. This process is essential because it helps ensure that procuring services and products for government agencies is done in a fair and open manner. 

Now, as a supplier, complying with the tendering process can be a tedious and complicated challenge. In fact, many businesses that boast significant potential as a supplier for government products and services do not get selected because of their failure to follow the tendering procedure. The tendering process is put in place to make sure all the necessary regulations are complied with so keeping the basics in mind is paramount for any supplier. 

For this, any organization can actually tap the services of companies dedicated to making government tenders. These companies specialize in knowing and familiarizing themselves with the regulations governing the request for tenders. Similar to companies that take care of your tax compliance documents, companies that focus on government tenders are designed to make sure every single document is correct and that you are guided through the whole process without missing a beat. 

When selecting which company to work with when making government tenders, here are some considerations: 

  • First, check if you can find companies that specialize in specific services that match your needs. There are companies that have a proven track record with electrical or plumbing or civil services but not with mechanical work. If you can find companies with a proven track-record on specific services or products, that would be more advantageous for you and your offer.
  • Second, scope and price are obviously important considerations too. You will need to provide the data to make the tenders but the best companies will put it together for you. If they can do this for a competitive price, then that will work best for your company.
  • Third, make sure you work with a company that has extensive experience with a specific government agency in a specific country. If you are planning to bid for a project inAustralia, get government tendering companies with experience inAustralia, not in theUS, as the process can be vastly different in these locations. 

These is tremendous potential for doing business with government agencies so if you are open to pursuing this market, make sure you tap the right government tendering company to help get your tendering documents on the right track.