Personal loan, debt consolidation, refinancing
Nov 132012
 

Saving money is so important for many reasons. Some of the reasons that saving money is so important have to do with security and safety,

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TheAlieness GiselaGiardino²³ / Foter

while other important reasons for saving money have more to do just with the practical aspect of trying to plan ahead for major expenses. In terms of emergencies, it is so important to be saving money. While no one likes to think about the possibility that they will lose their job, become disabled, or have some other sort of disastrous financial crisis, the fact of the matter is that it happens to people all of the time. Even much smaller emergencies, such as needing car repairs, are better handled by having saved money along the way, as opposed to having to scrape money together during a crisis. Saving money is so important for these types of situations. If at all possible, you should have a savings of three months worth of your expenses to help in case of emergencies saving money is important for planning ahead, too. Almost every parent would like to see their children’s go to college, for example. However, many children will not be able to go to college on scholarships. Those that do not will either have to find a way to pay for college or to take out student loans. Student loans may not even cover all of their expenses. Saving money is an important part of providing for your child or children’s education. This is not the only area that parents should save for, in regard to their children. For example, in the same way that parents save money as an important part of education, they may also save money for their children’s weddings, or to help there child buy their first car, or even their first home. Finally, saving money can be an important part of our life!!!!

Nov 122012
 

After benefitting from several years of low NatWest interest rates, my fixed rate is over and I am reverting to the Standard Variable Rate. I don’t have enough equity to remortgage and I am skint. My mortgage, after snugly fitting in with my lifestyle and life plans, has grown teeth.  I can’t earn more money than I do so… whoop whoop; not… I have had to go on an economy drive. I began by cutting back on the most common (meaning fun) things such as eating out and extras in monthly shops but found that it just wasn’t enough to fill the deficit that I face. It is a bit of a nightmare but what can you do. I have become conscious about everything; not least my energy bills. I have gone on a mission.  A mission to save, save and save some more… Here is what I found out about energy.

Compare Offers Online

I find that if you’re going to secure a tariff, doing it online is your best option for saving on your energy bill; plain and simple. Online comparisons are everywhere these days. Agents and brokers to help you with your switch crop up whenever you run a search for anything energy related.  I get annoyed by it all but I guess if it wasn’t everywhere there would be less competition and we wouldn’t be able to get such good deals.

Different Fuel Offers

  • Single fuel – These tariffs are for those that wish to get their gas and electric from different suppliers. For households that don’t have a gas pipeline, you may end up having to go with a single electricity plan. 
  • Dual fuel – Over the past few years, this has become a very popular tariff, especially because energy companies have been trying to offer lots of incentives to keep loyal customers. With a dual fuel system, your gas and electric will come from the same supplier. This is usually how you end up saving big as they are able to offer you great packages for all energy in your home.

Going Green and Reducing Consumption

The teeth are still sharp so I am getting efficient around the home. Doors are shut, thermostat is turned down, washing machine is always run full, chimney is blocked off, the roof is insulated (courtesy of the Government ;) , the lights are only on when they need to be, the freezer is defrosted and I still have a list of a dozen other things to do or start doing.

I m gradually blunting the Mortgage Teeth. I am gradually getting my spending in line with my earnings. It isn’t easy and it takes sacrifice to own your own home. At the end of the day with responsibility must sometimes come sacrifice; well what else am I going to do?

I could still do with more tips to save some cash around the home. Any ideas anyone?

Image: Microsoft

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  •  License: Royalty Free or iStock source: http://office.microsoft.com/en-us/images/results.aspx?qu=teeth&ex=1#ai:MC900444801|

Phil Turner has great sympathy for anyone trapped by the NatWest interest rates change on current accounts. People would have been counting on those few pounds to pay their bills and without them even more will be struggling to make ends meet.

Nov 112012
 

Savings accounts are vital, especially in today’s world where unemployment is on the rise and employees as well as business owners face uncertain futures.  If you lose your job tomorrow, how will you pay your bills?  Do you have a safety net in place that will allow you to cover your monthly living expenses, your home, your healthcare, etc.?  If you do not have any savings in place to last you at least a few months if you end up losing your job and your income, you will face being foreclosed, being evicted, and getting into credit card debt.  Savings accounts are also necessary in the event that your checking account runs of out of enough funds and you need to transfer money from one account to another in order to pay off your credit card bills.

Standard Savings Accounts

Standard savings accounts are available at every bank, whether it is a brick and mortar bank or a strictly online bank.  Interest rates often accompany savings accounts, which means that, each month, you will earn a percentage of earnings on the amount of money you have invested into that savings account.

Most basic savings accounts do not offer very high interest rates, especially these days when interest rates have sunk so low that many banks do not even offer a full 1% on regular savings accounts.  You may, however, find a bank, such as a community bank rather than a big bank, which is able to provide you with higher interest earnings.

Also, some banks offer interest rates that go up as the balance in the account increases.  In this way, you are rewarded for investing in that bank, and as you continue adding to savings, you are increasing your interest rate at the same time, which means more monthly earnings.  This translates to your money growing with ease.

Certificates of Deposit

Certificates of deposit, or “CDs” for short, are able to offer you higher interest rates than standard savings accounts, but you need to be prepared to lock your money into that account for a specified amount of time, such as 3 months, 6 months, 9 months, or even a year or more.  Depending on how long you lock in your money, you will earn different interest rates, so it is entirely up to you to decide what you feel comfortable with.  If you feel that you will not need to access the money for a long time, then go for a longer term plan if it offers a higher interest rate that makes sense to you.  If, however, you are worried that you may need to access that money at some point, and you want to rest assured that it will be available to you sooner than later, go for the shortest possible term.  The reason for this is because you will pay a penalty fee if you need to take out the money before the CD has expired, or come to term.

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When you are ready to get a credit card, just remember that a line of credit comes with a lot of responsibility, so be sure to save up enough money in an emergency savings account, budget appropriately so that you do not end up overspending and so you do not end up in debt because you are unable to pay off those credit card bills.

Nov 112012
 

Online banks can be very appealing, especially because they offer easy ways to do your banking and to keep track of your accounts.  Plus, they are able to give higher interest rates on savings accounts.  While your local brick and mortar bank may only be offering a tiny percentage of interest on your savings today, you can find an online bank that offers a much higher rate and can, therefore, allow you to invest more intelligently and earn money more quickly, without even lifting a finger.

Despite the allure of online banks, however, there are some drawbacks that should be considered before you rush into signing up and transferring your money to a new bank that is based entirely on the internet.

The Drawbacks of Having an Online Bank Account

While the interest rates on regular savings accounts may be higher than those of brick and mortar banks, you will probably not get as high of an interest rate on other forms of savings, such as certificates of deposit.  These types of savings accounts at brick and mortar locations can actually offer higher rates than the online savings accounts.  Therefore, it is best to really do your research into the many banks in your area, including online banks, to determine which offers the best savings options and interest rates to suit your needs.

Even though you can access a customer service representative for an online bank, many people still prefer meeting with a banker face-to-face, especially for very important issues, such as needing to take out a loan.  When you have an account with a bank that is entirely online, you cannot simply go to the local branch of the bank and speak with someone directly.

Another cause for concern, though rare, is if the bank’s website goes down and you cannot access your account until the problem is resolved.  You can also lose access if your home loses power or internet service for a period of time.

Benefits You Can Receive from an Online Bank

The first thing most people think about in terms of online banks is their ability to offer higher interest rates on savings accounts.  This means you can simply invest your money in the bank, let it sit each month, and watch the interest accrue on every statement you receive.  Without doing any work whatsoever, you can watch your money grow.  The reason that online banks have the ability to provide higher interest rates is because they have no physical locations to maintain and fewer employees to pay.  Lower overhead expenses and salaries means they can pass those savings along to you and entice you to open an account with them.

Because you can do everything online, you can perform your banking tasks any day of the week and at any time of the day or night, without needing to worry about when your local bank’s branch is open.  Whether it is a Sunday afternoon or 1:00 in the morning on a Tuesday night, you can do whatever banking you need to catch up on.

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Online banks can offer many perks, such as online credit cards and higher interest rates on savings, but before making the switch, make sure you are educated about the benefits and pitfalls of investing in these kinds of financial institutions.

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