Archive for the ‘banking’ tag
Learn Financial Literacy
Financial literacyis realizing that not all debt is bad. Divide your debt between good debt and bad debt. Focus your attention on paying off the worst of your debts first. If you are paying off two cards, say an American Express and VISA card, find which one of these has the lowest interest and pay off your highest interest card first. At a certain point, you will want to switch over to paying the lower interest card when you have the high interest one mostly paid off. Break out the calculator and find out which one of these is costing you the most per week. It will take some number crunching, but the money you save will be well worth it. Always be careful to read the fine lines on your credit cards.
Divide what you spent last year into wants and needs. Everyone has heard this before, but many people don’t take the time to actually apply this simple concept. Sit down with your checkbook or bank statement and create two columns on a piece of paper. Actually write down and see what you are spending on want and need items. We have all heard cutting out coffee from our lives could save a great deal of money, but did you actually realize a $5 coffee per day means you are spending $1825 per year? How much is that cutting into your yearly budget? If you just can not go without your morning coffee, find another way you can save on this expense or look at what others expenses you can cut out. Can you brew at home? There may be many ways to save on your expenses. Financail literacy will help focus on the right things, the things you need.
Knowing your credit score and report are important. This one little number determines how much you will pay on many of your debts. You can always check your credit score at www.freecreditreport.com. Clear up any errors you find and identify your problem areas. It is possible you have been suffering a bad credit score from an error on your report. Always monitor your credit score to be on the lookout for identity theft. It is a rising problem that affects many Americans and can plague you with unnecessary problems.
Financail literacy means a periodic review of your insurance – car, health, life, renters or home – might save you quite a bit of money now and in the future. My husband and I had the same auto and home insurance provider for over 30 years. You would think that as long time customers demonstrating this kind of loyalty we would have been receiving the very best rates available – think again! In fact, we even found a number of errors in our coverage that could have cost us a great deal of money.
When a family friend challenged us, hand in knee, to review our insurance, he found we were receiving a discount for a sprinkler system we did not have. If we had a fire we could have had the claim denied because we did not have a sprinkler system. Imagine how much extra that could have cost us? In addition, our friend found a number of different premium discounts we were eligible for, but not receiving, we had no idea! In the insurance business, if you don’t ask for discount premiums, you will never get them! We saved a good chunk of money each year by doing this simple review. Get new quotes to make sure you have the best deal available.
Sharon Lechter can help you, step by step, in Literacy in your Finances
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Is Property Insurance A Requirement?
Property insurance plan provides coverage against any sort of theft or damage done to your home or property. The damage can be caused by natural calamities like flood, wind, fire, or earthquake. Property insurance plans in areas that are more likely to be affected by these natural forces are costlier in comparison to other places.
Incase you have a home of your own that you may not get any type of home insurance policy. You are indeed risking your home and property, on the belief that it may not be affected by calamities or robbed. If it is stolen or damaged then you may suffer the loss of your personal assets. If your home catches a fire by chance, then not only your house, but also all your clothes, furniture and other assets will be lost. You may not be left with even a place to live, and you may have to start your life from zero. This can be a great risk for those who are not secure financially, or those who live in areas more prone to such natural calamities.
You may want to have property insurance only if you have a credit or you are still making payments on your home loan. As the home is yours officially, the insurer has a right to make sure that your home is safe. If the home is ruined in a disaster it will be more of insurer?s loss than yours. You need to be very cautious of the insurance plans that insurer present directly for your ease. It is advisable to get a great deal for yourself that may help you in saving some funds.
Not all insurance companies provide property insurance, but many of them do. Look around on the internet and phone book to find companies in your area. Talk to the agents to find the best deal possible. Make sure you find an agent that you trust, since there are some that are only out there to make money off of the commissions. Ask questions about your coverage and any discounts that you might be able to get.
Before you start looking for insurance it might be helpful to make sure your credit is in line. If you just bought a house it is likely you have already taken care of this. Your credit plays a large factor on how your premiums are decided, along with your claims history and the house that is being insured. Call the credit companies to dispute claims and pay off any outstanding debts that you do have.
There are various methods by which you can save money, on your property insurance. Get going by searching for a house in the locality which doesn?t have high risks. Cities such as Los Angeles and Miami will indeed have high rates as the areas are more open to hurricanes and earthquakes. The state of your house is also an important factor. If your house is not constructed according to the building codes, then it may be risky for the insurers. Similarly, if your house is large and attractive home, then insurance companies may fix your premiums high as such houses are more vulnerable to burglary.
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