If you’re coming from renting to buying, you really need to consider the monthly expenses of everything below and see how it compares to what you are currently paying.

The Mortgage

The mortgage, however, is usually the biggest expense that you will have when you own a home.  As such, it is important to get the best deal possible on a mortgage.  This starts with getting the best interest rate.  You should shop around for Canada mortgage rates with ratesupermarket, as it can give you a great look at what interest rates are going for and what you will pay for a mortgage each month.

Beyond just the interest rate, you also want to fully understand the terms of the loan, and any costs associated with it.  You don’t want to find out 5 years later that you could owe more than you originally paid.

Taxes

The only sure things in life are death and taxes, and the same thing applies to your home.  When you buy a home, you will have to pay property taxes on the home.  This expense varies by location, but averages 1-2% of the purchase price of the home.

It is important to remember that most places collect taxes annually or semi-annually.  So, although they are only due one or two times a year, you still should be saving for them monthly so they don’t catch you off guard.

Insurance

Now that you own a home, you need to protect it.  This means maintaining basic home insurance in case something happens.  Whether you want to or not, most lenders require you to maintain home insurance as a condition of the loan.

Your insurance cost will vary based on the size of the home and other features, so make sure you shop around for the best quote.

Utilities

The last thing to remember is the utilities.  You will still need to pay for water, power, cable, phone, and more.  In fact, you will probably have to pay for more services than when you rented, so be aware.

Let’s say you take out a mortgage for $250,000 at 6.5% interest.  Using a mortgage calculator, you determine your monthly payment will be $1,580.17, and over the life of that $250k loan, you will actually pay $568.861.22 over 30 years.  Now, look at how these strategies can save you:

Shop around for the lowest mortgage rate.  If you find a mortgage for 5.5% instead of the initial 6.5% in the example above, you save yourself nearly $58k in interest over the life of the loan.  Your monthly payment also drops to $1,419.47; you free up $161 a month for additional cash flow just by shopping around for a lower mortgage interest rate.

Make bi-weekly payments.  Your mortgage payment is due once a month, but consider replacing that monthly payment with bi-weekly payments.  Now, instead of paying $1,580.17 once a month, you pay $790.09 every two weeks.  There are two advantages to this.  First, because you are paying bi-weekly, you actually end up making 13 full monthly payments a year instead of 12, and you also prohibit the interest from building up over the entire month, so a bit more of your payment goes on principal.  Using this strategy, you save an additional $74,434 over the life of the loan.  Coupled with strategy 1, you will now save almost $132,000 in interest off the total loan cost.

Utilizing the two strategies above actually requires very little extra money on your part.  First, shop for the best interest rate you can get, and then make payments every two weeks instead of monthly.  Doing these two simple things will save your almost $132k in interest that you would have to pay over the life of the loan.

If you want to pay once a month but pay extra, try these strategies:

Make lump payment.  Use a lump sum payments calculator to determine how much one time lump payments can save you in interest.  For instance, if you pay $1,000 extra each year when you get your income tax return, you will take three full years off your mortgage and over $19k off the interest you pay.

Round up your payment.  A simple affordable way to reduce your mortgage is to round up your payment, say to $1600 from the standard payment of $1580.17.  Doing so will take more than $7k off your mortgage as well as 14 months.

While you may feel overwhelmed with the size of your mortgage, small steps such as rounding your payment or making payments biweekly can have a dramatic effect on both how much you must pay back and for how long.  Combine all of these four strategies together, and you will be amazed by how quickly your mortgage disappears.

Post by Jack

Corporate Banker:  Those who work in corporate banking with U.S. and U.K. businesses assist companies with financial decisions such as what short-term and long-term investments they should have.  They also may analyze large companies’ cash flow management and help them decide which acquisitions would be wise investments.

Financial Planners:  Financial planners work with individuals and families to help them decide what to do with their money.  They may help individuals determine where to invest their money for retirement and how much to invest.  They may also help clients set up college funds for their children.  Financial planners can also advice on estate planning and taxes.  You may work independently or as part of a company.

Real Estate:  There are many careers in real estate for those who excel in finance.  Career options include property manager, mortgage broker, appraiser, as well as real estate investor, to name a few.  If you enjoy working with people, you could make a very good living as someone who buys and rents properties both for private and business use.

Commercial Banking:  If you enter the commercial banking field, you will be working with individuals and small businesses.  Just like real estate, there are plenty of varied jobs available in this field ranging from handling client accounts to being a teller to bank manager to credit card services as well as a host of others.  If this is the field you are interested in, you may begin as a teller while in college and plan to move to a higher position after you obtain your undergraduate degree.

If you enjoy working with money and making smart financial decisions, there are plenty of jobs in a variety of fields where you can use your skills.  To enter these fields, you typically need a bachelor’s degree in business, finance, or another business related field such as accounting or economics.  You may work in the field while you are in college to begin to gain experience.  Once out of college, you may need to work at a lower level job for a few years before you can advance to a higher position with more responsibilities and more pay.

Guest Post by Melissa 

However, take a look at all of the “stuff” you have around your house that you no longer use—extra furniture, outgrown baby gear and clothes, outdated computers and cell phones, and many more items all have the potential to be extra cash.  If you need fast cash, consider unloading this unused merchandise to make extra money.

There are several places you can sell your “stuff”:

Ebay—This site is great for selling general merchandise and designer clothes, both adults’ and children’s.  There may be a fee for listing the auction, and you will also have to give EBay a percentage of the final sales price, which is determined based on the final sales price.  In addition, you will need to pay a Pay Pal fee.  However, millions of people come to Ebay every day, so there will be a large audience to view your items.

Craigslist—This site is good when you are looking for local buyers, especially those looking for large items that are difficult to ship such as outgrown play toys and furniture.  Another nice feature is that the site is free, so you don’t have to pay any fees.

Half.com—If you have old textbooks, consider selling them on half.com.  If they are the current edition, you could make $20 to $60 per textbook, depending on the topic.

Garage sale—Now that the weather is nice, you could have a garage sale.  The key for a successful garage sale is to advertise and to price the items to sell.  Also, make sure to display the merchandise attractively rather than just having them in boxes or piles.

Consignment stores—If you have clothes that are in nice condition, consider selling them at a consignment shop.  Usually you will get a percentage (often 50 to 60%) of the sales price.  Alternatively, if you have kids’ clothes to sell, you could sell it at a kids’ consignment store that just gives you a flat rate for your items; you get the money when you drop off the items.

BuyMyTronics.com—Use this site to sell your used electronics such as computers, cell phones, tablets and smart phones.  You can list your electronic device on the site and get a quote for the amount that buymytronics. com will pay you.  If you agree to the price, ship them your devices.

Many people have literally thousands of dollars of “stuff” in their homes that they no longer use or that are outdated.  If you need to come up with cash quickly, one way to do so is to clear out all of the clutter.  When you are done, you will have extra cash in your pocket and a cleaner home.

Post by Melissa

1. Start by looking at your overall financial picture. Allow time to gather the information you’ll need for a complete picture of debts and assets. It’s surprising how many amounts escape your awareness when you aren’t dealing with them regularly, so give yourself enough time to remember and account for all the income and expenses you might have lost track of.

2. Look at the fine print on everything you owe. A secured debt is for something like child support, student loans or income tax payments — things you have to pay no matter what, if you want to avoid winding up in legal trouble. An unsecured debt is less urgent, because while the creditors can send bill collectors after you, you have certain consumer rights on your side.

3. Check with your creditors for a lower interest rate. This doesn’t always pay off, but it’s a step worth taking because you could wind up saving thousands of dollars if it does. Debt consolidators are experienced in negotiating with creditors for lower payments, so take advantage of their expertise.

4. Decide which debts to pay off first. You might prefer to start with the smallest, which will give you a sense of satisfaction sooner because you can cross it off your list earlier. Or you might prefer to start with the debt carrying the highest interest rate, which will help you avoid paying more money for a longer period of time.

5. Don’t take on any new debts. This sounds simple and obvious, but a lot of people start out with great intentions and begin paying off their creditors. Then they succumb during a “must have this” moment and wipe out all their progress with a brand new purchase or a brand new credit card.

6. Prepare for emergencies. Build up a fallback stash of cash or assets that will get you through an unexpected downturn, but avoid raiding the emergency fund for anything else. If keeping anything is unrealistic, choose a single credit card with the lowest annual rate, and don’t use it unless you’re faced with an emergency.

7. Decide what you’ll spend each month. Along with debt payment, you’ll need to allow for the basics of food, clothing, shelter and all the other necessities. How much will it actually take to sustain your household? The best way to determine that is to keep track of every single expense during a typical month. (You might see totals that surprise you, such as triple-
digit expenditures at Starbucks.)

8. Make a plan for cutting down expenses. Once you know what you’re spending on everyday items, you’ll find areas where cutting back will make a significant difference. However, you might want to build in a specific amount for occasional treats. It can be easier to stick to a spending plan if you know that, for instance, once a month you can indulge in a triple grande mocha latte.

9. Sell some assets. You can get a boost on your debt-payment plan with an infusion of cash, whether it’s for an item you rarely use or an item you can replace inexpensively. Selling a jeweled wristwatch and buying a basic watch is good economics. So is digging out unused furniture, exercise equipment, valuable books or collectibles, recreational toys, and other items that don’t contribute to your daily life.

10. Take on extra work. This can be short-term to get you through the first few months of debt reduction, or last as long as you want. See how you can juggle your schedule to include a few more money-making hours, whether at your current job or another area where you can pick up work. It might not become a new career, but additional income is always convenient.

You might not need or want to use each of these ten tips, but see which sound most useful for your situation. And of course, the more activities you change, the faster you’ll be debt-free for 2012!

Larry P. Smith & Associates, a Chicago Law Firm, focus on consumer rights law. If you are having difficulties with bankruptcy, identity theft, debt collection or consumer fraud, request a free case review with Larry P. Smith & Associates.

Balance transfers are now a mainstream feature, which when used correctly can allow you to avoid paying any interest at all on the credit card debt that you have accumulated. At the time of writing, the Santander Credit Card is offering 0% interest on balance transfers for 17 months, although an arrangement fee of 3% of the balance is chargeable for arranging the deal. If the balance is significant this fee might also be noticeable, but you should not let the arrangement fee put you off transferring the balance. Quite simply, it is always better to balance transfer to a low or no interest rate deal than to make minimum payments on a standard interest rate card for years, and end up paying a fortune in interest.

One note of caution: don’t rely on 0% balance transfers deals being offered forever. The credit market can change rapidly, and these deals can be withdrawn at any time (although not once you have entered into them, providing you are not late in making regular monthly payments). If you are able to set up a standing order to pay monthly instalments that will clear the balance before the interest free period ends, this has to be the best tactic, a tactic which will incidentally avoid the scenario in which you are late in making a regular monthly payment. As mentioned, such a payment default can result in the sudden termination of your 0% deal, and the standard rate of interest applying, leaving you back at square one. In fact, late payment could leave you some distance behind ‘square one’, as you will have used up a viable balance transfer option, and the default in payment will reflect poorly on your credit history, often making it more difficult to successfully apply for another credit card and balance transfer deal.

In general, you should remember not to use a card offering a balance transfer deal for purchases, as a different rate of interest usually applies to purchases, and you can again end up paying standard credit card interest rates. For more information about how to make the best use of balance transfer deals, try looking at: www.moneysavingexpert.com/.

Cash back cards are a lot more straightforward, providing a ‘kick back’ of a percentage of your expenditure with recognised suppliers each time you use the card. The Santander 123 Cashback Credit Card currently offers cash back of 1% in supermarkets, 2% in department stores, and 3% at petrol stations, making the use of this card for such purchases something of a no brainer.

Image: David Castillo Dominici / Freedigitalphotos.net

Cheap wedding insurance might limit the number of people who can claim on an insurance policy, or it might not recognise a family member’s contributions under the insurance policy. The best wedding insurance should ensure that all close family members who have a financial investment in your wedding are also financially protected by the insurance. Whatever the cost of your wedding, you should ensure that you are fully insured on the big day.

Illness in the family could be one of the reasons that your wedding has to be cancelled, for example. If a close family member, such as a parent, grandparent or sibling, falls unexpectedly ill you may have to postpone the wedding proceedings. This claim will usually only be valid if they become ill from a condition that was not pre-existing – and if this is the case then your wedding insurance should protect you financially against the costs of cancelling with suppliers and informing guests. If your family members have invested in the wedding, perhaps they will feel reassured to know that their financial investment is also insured.

It’s not unusual for more than one party to help out with the costs of a wedding. With lots of friends and family to invite, and a dream vision of how you want your wedding to look, the costs can easily mount up. Flowers, cakes, bridal wear, the rings, a venue, food, favours, invitations, entertainment… the list of costs can soon become longer than you anticipate once you start planning a wedding. Whilst the bride and groom may be able to support themselves, nevertheless, parents of either the bride or groom may also like to help. Perhaps a sibling might want to contribute, or a grandparent might like to be financially involved in the proceedings too.

Whether these family members pay for a section of the wedding, such as the flowers, the dress or the food or whether they pay for the whole thing – it’s important to know that the best wedding insurance financially protects their investment.

Company Profile:

John Lewis Insurance offers a range of insurance services selected by the John Lewis Partnership. These include car, pet, life, travel, event, wedding and home and contents insurance products.

For more information about John Lewis Wedding Insurance please visit the website here – www.johnlewis-insurance.com/homepage/wedding-insurance.html.

John Lewis Insurance is a trading name of John Lewis plc. John Lewis plc is an appointed representative of AXA Insurance UK plc which is authorised and regulated by the Financial Services Authority.

Terms, conditions, limitations, exclusions and eligibility criteria apply. A full copy of the policy wording and the insurance complaints procedure are available on request.

The best known, thanks to some memorable if irritating advertising, is shopping around for the best quote. The benefits should be obvious bearing in mind that home insurance is arguably the most competitive market in the insurance industry, but there are a couple of notes of caution. Make sure that if you rely on comparison sites, you try two or three different sites to make sure you aren’t missing any bargain. It’s also important to check individual policies carefully to make sure you are comparing like with like.

Getting the excess right is also an option for saving money: the more of any claim you’re willing to pay yourself, the lower the premiums. Which is the right level for you depends partly on whether you can afford to make a higher contribution if it comes to it, and partly on your general attitude to risk. High excesses also make sense if you believe you are less at risk than the insurer is assuming, though this can be a tricky business and generally insurers know what they are talking about.

Consider fitting approved locks or alarms as this can knock a fair chunk off premiums. Bear in mind that, if well maintained, these can last for many years, meaning they could be worth the investment even if the immediate savings don’t outweigh the cost. Think about joining a neighbourhood watch scheme: some insurers give discounts for this, and in any case you’ll be able to get good security advice.

For many people, the choice of payment plan may be the biggest factor in total cost, with some insurers charging high rates for those who choose to pay monthly rather than up front. Check the figures carefully, but you could even find that if you don’t have the cash to pay the entire premium at once, using an overdraft or credit card may still work out cheaper than the monthly payment scheme. Remember that you can pay a card or overdraft back as soon as you are able to, while an insurer will lock you in to the monthly repayments and interest charges.

There is one cost-cutting trick that you should never try though: deliberately listing a lower value than your goods are actually worth in an attempt to cut premiums. In extreme cases this can make your entire policy void, meaning you’ve wasted your premium and won’t recover any losses. More commonly you’ll fall victim to the proportionality system. Simply put this means that if the insurer decides your total cover limit is, for example, 75% of the actual value of your possessions, it will only pay out 75% of any claim, even if it’s for a single item that’s far below the total limit.

Guest post by Adam

Now, in addition to being on her own, Jill is working to rebuild her credit score. When she attempted to open credit cards in her own name, she was declined due to her poor credit thanks to her husband’s mismanagement of their money and her limited income without her husband’s salary. While Jill acknowledges she is partly responsible for the situation because she was not involved with the family finances, she is still frustrated that she cannot move on financially on her own.

Unfortunately, Jill’s case is not an isolated one. Many married couples find themselves dealing with some form of financial infidelity whether it is running up credit cards to pay bills, as Jill’s husband did or using credit cards to shop or gamble as others do, or for many other reasons.

If you are newly divorced or still married and facing financial infidelity, there are ways to get back on your feet despite bad credit. In Jill’s case, the first step should be to open a secured credit card. Secured credit cards such as the Orchard Bank credit card fill a niche need of dealing with those consumers with no credit or bad credit.

Jill is not a bad consumer; she was simply an uninformed wife. Now, she can put down a refundable deposit, say $350, which also doubles as her credit limit. By responsibly using her secured credit card and not going over her limit, she should begin to slowly improve her credit score, and in a few years, she should be able to also open a traditional credit card in her own name.

Guest Post by Melissa

What a Cash Advance Can Do For You

You might wonder why an emergency cash loan would be beneficial. There are a number of different reasons. First and foremost, it will give you the peace of mind of knowing that all of your holiday’s plans are being taken care of. Instead of worrying about how you’re going to pay for the things you need this Thanksgiving or Christmas, you’ll have the money that you need to take care of business. You can put that turkey or ham on the table and those gifts under the tree. This alone is worth its weight in gold.

Getting a Cash Advance in a Flash

It doesn’t take long to borrow the money that you need to make your holidays memorable. In fact, many companies have streamlined the application process as a service to you. The last thing you want to do is spend hours filling out questions and trying to qualify for a fast cash loan. You want the process to be painless so you can begin celebrating the holidays the best way that you know how to-with your family.

Planning for the Unexpected

Things go wrong when you least expect them to. Having extra cash on hand to take care of a costly car or house repair is ideal. This frees up you paycheck for other living expenses and makes it easier for you to have the best holiday that you have ever had. Instead of rushing to come up with more money, you can get an emergency holiday cash loan and take care of your responsibilities quickly and easily. You restore your sanity and save Thanksgiving or Christmas for your family.

A holiday cash advance has its benefits. As you’ve been reading, you most likely have gained a better understanding as to why it can help you to take out a short-term loan. Not only is the process painless, it really can save your holiday. In the event that something unforeseen happens, you have the funds available to still do the things you need to do to make your day special. This could include cooking a delicious meal for your family, purchasing last minute gifts for your children or traveling to another state or country to be with your loved ones. Knowing that you have the money to do so restores your sanity and makes it easier to get through the holidays stress-free. That’s rather reassuring considering so many people get the blues during this time of year because they can’t financially provide for their families the way that they want to.u get the peace of mind you need.

Guest Post by David