How to get the money associated

How to get the money associated with financial freedom

Explaining the essence of financial propriety and planning can be simple and straightforward but it is in the implementation that we normally falter. There is for example the philosophy that encourages a person to save upward of $2.5 million which prudence dictates can be leveraged to purchase a good spacious home, and a car with the efficiency and longevity of a Honda or any particular breed that excites your senses and leave enough to plough into reliable investments that assure returns exceeding 5% annually.

That alone clears the path for an annual income exceeding $100,000. If you deduct what needs to be paid for capital gains, you are still left clutching $80,000 annually on which you can live like fairly king size. This is the kind of income that makes a person completely independent and financially strengthened. It also guarantees freedom to reject a lifestyle or a job you do not wish to pursue. You can become selective in choosing a job that satisfies you physically, emotionally and spiritually and insulates you from life’s daily stress and struggle.

There are some wonderful reasons why a person ought to aspire for this kind of financial freedom:

1. You have the freedom to choose a vocation that is not necessarily focused on earning money. That novel that you are intent on finishing, the travel escape that you spent your youth planning, the vacation retreat that you wish to build from scratch – all these goals suddenly become possible, that were totally beyond your means when you were living life from 9 to 5.

2. You get a sense of security which is priceless. It’s the feeling that no matter what happens you will be fine a month, a year or a decade from now. It creates openings to secure your children’s future and secure your own getaway in the twilight years.

3. You get the flexibility to take life one day at a time and not be overly bothered about mixing professional engagements with pleasure trips. You can co-opt a lifestyle that gives you more leisure than you can handle without feeling guilty that you are cutting into your main earning job or part time vocation.

4. You get sufficient time to explore your personal interests or indulge a streak of creativity that would otherwise be denied to you in the daily grind of a monotonous job. You get to do and follow what excites your passions and satisfies your soul.

5. You are gifted with a great deal of stability in the twilight years when your physical movements have slowed down but your desires are racing at fever pitch. It is a moment when the accumulation of money ceases to be of paramount importance because matters of the spirit can dictate the agenda.

money in hands

The 10 astonishingly simple tips for achieving financial independence

If we could summarize the steps that lead to financial independence we can humbly say these are the golden words that ensure you reach that destination with mind, body and soul intact:

  • You can start today by emptying half your earnings into a savings bank account that was hitherto running a tad above the minimum balance. Definitely, that’s a huge chunk but if you can teach yourself to live on the remainder you would have won half the battle.
  • You eliminate your debts in a time bound manner, ensuring that you finish them off way ahead of their scheduled dates of payment. It helps a great deal if during this period of sacrifice and more sacrifice, you trim your monthly bills to the bare minimum. Be energized by the thought that a day will dawn when you will be rid of mortgage payments, credit card balances and car loans.
  • My wife and I love our café latte, admittedly an expensive hobby, but there is a peculiar pleasure in brewing a potent decoction at home. Treat yourself to a splurge once in a blue moon but don’t make it a habit that empties your wallet. It’s also wiser to save up for a purchase rather than to reach for the plastic.
  • Buying generic and not branded stuff can be a life changer in more ways than one. Reason? They cut costs by half and are as good as the originals, and serve the same purpose without exhausting finances. The philosophy can be extended to every type of consumer durable that comes into the home.
  • Our tummies are not waste disposal units. So junk food has no place in it. There is a quite exuberant joy in planning and creating a meal in the home, eating out only occasionally. We use our grill and slow cooker to the limit and try avoiding preprocessed and packaged foods that glut the super market. We plan our weekly meals depending on the seasonal veggies and fruits that we source from the farmer’s market. Oh Yes, we take the trouble of visiting the farmer’s cooperatives every weekend to stock up.
  • Energy efficiency is the key to managing a home and household appliances. Switch off what you don’t use and go easy on the HVAC. Keep a conscious check on the kilowatt hours of energy and gas consumption that animates the home. The car ought to be small, fuel efficient and light weight, the lights should be LED where possible with longer replacement cycles, and give the occasional holiday to the AC and the furnace by opening windows and allowing the fresh air inside.
  • Entertainment should be inexpensive or free as far as possible. A visit to the public library should satisfy your craving for good reads, and you can delve into their humungous collection of DVDs and Blu-rays to satisfy your audio visual cravings. Community cultural events should be patronized in a big way. Geocaching is a fabulous way to spend a weekend. Playing soccer and tennis in the public parks is an energizing way to spend a glorious afternoon. Collecting relics, precious metals or postage stamps can be powerfully satisfying hobbies. The fun lies in discovering something new that turns you on. * Working from home has humongous benefits. For starters there is no need to maintain an expensive wardrobe. You save precious fuel by avoiding the daily commute. You can make a tasty meal out of leftovers. There’s oodles of time left to finish off your daily chores.
  • Spend time to foster and encourage and build relationships that create enduring bonds and strengthen the community you live in. Very soon you start receiving payback in the form of free babysitting, valuable advice on discounts and great bargains, free dinner parties and get-togethers and sitters that take personal care of your home when you are away.
  • Pursue the long terms interests over short term gains and you will never run short of life’s basic necessities. Get into the habit of judging financial gains in small and major activities that you may regularly engage in. Gradually you shed those ventures that drain money and shift to activities that reduce expenses while you boost savings. The last word

Financial freedom is an immaculate concept that every able bodied householder should religiously pursue. It is the passport to a lifestyle that energizes and fructifies your most cherished dreams. The $2.5 million question is are you up to the task? Be content that the results will be worth the sacrifices you have made. Car Title Loans San Francisco 20 California street Suite G, San Francisco, CA, 94111 (415) 319-7833

The long term perspective on personal finances

Success in personal finance is often linked to how we perform in the long term and nothing exemplifies that more than how effective we are in forfeiting many of our short term gains. The basic question boils down to whether you are really up to the task of sacrificing your comforts in the short term to ensure you reach your long term objectives.

Acquiring the habit of stashing something away for retirement

If you are intent on saving for future needs it necessarily implies that there will be less cash available for domestic needs. In some ways that could be a good idea because one learns to get by with lower income without inflating one’s demands. At the same time it is also an undeniable fact that the money that you want to set aside for retirement could just as well help you make good lifestyle choices (organic foods, eco green innovations) or sustain your favorite charity.

These are not bad choices by themselves but you have taken a considered decision to shore up funds to sustain yourself when the income dips and you have fewer resources to fend for you basic needs in a future that may be some decades away.

The challenge of keeping your assets liquid and accessible

The pessimist would argue that parking hard earned savings in liquid assets such as high yielding online savings plans and Bank Certificates of Deposit won’t earn you half as much as more aggressive income oriented growth stocks. But what this argument hides is the undeniable fact that high growth stocks extract a steeper price which is the risk involved in placing substantial funds that could turn bad and jeopardize a long term investment plan.

Planning savings for the long term is fine as long as they do not compromise the accessibility of the same funds if and when you need that money in an emergency. The smarter and more sensible choice would be to keep at least a portion of savings in liquid instruments that satisfy short terms needs. At least it saves you the need to turn to credit cards and payday loans to fuel immediate cash demands that can’t be avoided.

Young Girl Holding Some Cash

How insurance helps you meet life’s emergencies without compromising your savings

It is an accepted fact that it is well neigh impossible to meet all or most of life’s insatiable appetite for funds without a good insurance policy or two in your back pocket. We list a few essential (can’t do without) policies that could become your most powerful safeguard against financial chaos:

1. The Homeowner’s insurance policy for protecting your most valuable asset and belongings.

2. The Life insurance policy that guarantees your family a source of income and livelihood when you are no longer a part of the scenery.

3. Disability insurance that takes care of your needs in the short term and long term when you are physically incapable of generating wealth and income.

4. Long-term health care insurance that keeps the home fires burning when your health lets you down and otherwise makes you a burden on your family’s limited resources.

5. Health insurance that is vital to sustain and overcome the high cost of health care.

6. Dental insurance that provides coverage and cost savings in a highly expensive area that impacts your overall health.

7. Auto insurance which is a statutory obligation ensuring that your life, your vehicle’s longevity and lives of other are protected in serious road accidents that would otherwise smother you in debt and damages.

Naysayers would argue that you stand to lose thousands of dollars protecting yourself from incidents that have a small likelihood of happening, but consider the downside if the inevitable happens and you are landed with hundreds of thousands of dollars in expenses and commitments that your domestic budget cannot hope to provide for. Imagine the devastation a car crash or a sudden illness or long term disability could wreck on your personal finance if you were cut off from institutional support. Then insurance becomes a necessity and ceases to be a luxury.

The maintenance, up-gradation and renovation routine

If we buy the best assets that money can buy in order to make our lives more comfortable and cozier it also becomes our obligation to service the assets and keep them functioning in top condition so that they last our lifetime (or beyond). If you maintain your car in road worthy condition you are priming the vehicle to extract maximum mileage and save on fuel and unwarranted expenses. Big ticket items all need regular upkeep and maintenance to last longer and contribute their mite to maintaining your comfortable lifestyle.

Replacing items of value to enhance their worth and to save costs

Maintenance, repairs and renovation can take you up to a certain point, not beyond that, simply because most items come with a predetermined expiry date. Replacements are a part of life and the astute householder plans funds to meet all such eventualities. If maintenance is a recurring expense, replacement is a long term goal that can’t be avoided. If for example you are grappling with a decade’s old HVAC system that is shooting up the energy bills significantly, paying over $6,000 for a replacement could be viewed as a financial investment in improved technology that yields healthy returns in the long term through reduced energy bills.

Paying off debt more smartly

Finance is an inseparable part of life; it’s the via-media for accumulating all that you deem to be essential to living (home, car, appliances and many other things) and getting the opportunity to pay off the debt in installments with interest spread out over a longer term. But the fact remains that you are taking these loans under certain assumptions – you are assuming that you will live long enough, you will continue to grow your income and savings and you will remain hale and hearty till retirement, all of which are simply bets that may or may not come off. One way of preventing yourself from falling into the pit of financial uncertainty is to prepay loans to the extent that is possible and accelerate repayment in all other instances. Keeping ahead of debt payments ensure that sooner than later you become free of debt and avail opportunities to channel investments into worthwhile areas.

Deciding and executing big ticket expenses

Much depends on how successful we are in rationalizing financial decision making. For example is it appropriate to spend considerable time and accumulating student loan debt if the degree isn’t going to make a substantial alteration in your income or skill sets? Is repairing a better option than replacement? Is replacement inevitable and considered a cost saving measure in the longer term? Would you rather rent a home than buy one till your finances improve? Would you go for flexible rates of interest on the home loan or would you settle for a fixed rate anticipating a rate spurt in the near future? Finding the right answers could impact your finances and lifestyle tremendously.

Prioritizing your needs with a long term perspective

It’s but natural that you want to accomplish a lot by the time you retire but it is also next to impossible to have all your needs addressed. It is therefore necessary to prioritize your needs in such a manner that you get closer to achieving your goals with the resources at your command. Prioritizing is the best way to ensure success; the best way of ensuring you get to see light at the end of the tunnel.

Much as we find ourselves mired in the routine of the present, it pays rich dividends not to lose sight of a long term perspective on personal finances. Whether it is a corpus of funds you target for retirement day or investing in savvy mixture of growth oriented stocks and index funds to boost your sagging portfolio, keeping the long term goal in mind is your way of ensuring that years from now you will be rewarding yourself for your farsightedness and frugality. TNL Car Title Loans 1412 Main St #310, Dallas, Tx, 75202 (469) 410-3145

The real significance of the Fourth Amendment

A lot of confusion mars the average citizen’s interpretation of the benefits of the Fourth Amendment to the United States Constitution, and matters regarding the extent and scope of its protective umbrella. As everybody is aware, the law enforcement agencies regularly carry out search and seizure operations to control and curb crime and criminal activities. But are all such operations legal and above board, and will they be misused to harass innocent citizens? The Fourth Amendment protects the citizen from “unlawful” or “illegal” search and seizure operations conducted by government agencies. However, the amendment does not give a Cart Blanche to the citizen to free himself from legally correct searches. Here, we go through the dos and don’ts of search and seizure operations and outline crucial information the average citizen should know that will protect his fundamental rights.

The legality of searches

An officer of the law does not have the license to intrude into the private spaces of an individual in his attempt to search that individual. The law respects the right to privacy of all citizens. In a DUI situation, for example, the driver may receive a pat down to locate or identify concealed weapons but the police officer cannot straightaway dive into the car’s interior to conduct a more comprehensive search without justification on the whims of mere suspicion and without a valid search warrant. The Fourth Amendment protects the citizen from unwarranted and illegal violations of his privacy.

The legality of seizures

In the arrest scenario the law officer physically apprehends a suspect, as for example in a theft scene, Terry stop for traffic violation or DUI. Concealed weapons, liquor or narcotic substances may be seized from the person or his vehicle, but just as in searches, seizure too requires valid authorization and cannot be performed randomly on a whim or suspicion.

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How the Fourth Amendment protects the citizen’s rights

Search and seizure operations might unearth incriminating evidence that could be used to prove charges in a court of law. The Fourth Amendment ensures that the average citizen doesn’t get inconvenienced by any unlawful action on the part of law enforcement agencies. For example, a citizen cannot be pulled up and questioned when there is no clear violation of any law. A person cannot be subjected to a house search without valid grounds and his or her papers and personal documents cannot be seized without a valid search warrant. The law officer may conduct a search where valid grounds or suspicion exists that a crime has been committed or is the process of being committed but defense lawyers often tear holes in such search and seizure operations leading to courts dismissing the evidence accumulated as illegally acquired.

Judging the reasonableness of search and seizures

If there are valid grounds to dispute the police officer’s version of the nature of the crime, the court may declare the search as illegal and prevent the evidence from being tabled in court to substantiate charges. Search without valid authorization is usually frowned upon, unless the crime is serious and the culpability of the suspect is beyond doubt. The Supreme Court of the United States has laid down clear and unambiguous guidelines while judging cases of illegal search and seizure operations.

Searching and seizing evidence from homes

It is certainly not the case that the police are in no position to search or seize evidence without a valid license; there are exceptions to the rule. A warrantless search may ensue where a police officer clearly detects illegal materials present in the premises where he is legally present. Where the suspect is fleeing the law and has entered a home, he can be followed in hot pursuit, apprehended inside the home and a search and seizure conducted at the moment of arrest. In all such cases the exigencies of the circumstances determine the legality or illegality of the search.

The legality of the Terry Stop

In a Terry Stop it is permitted for the Police Officer to detain a suspect for a brief while to quiz him when unusual behavior (potentially criminal in nature) is observed.

The legality of Traffic Stops

In normal practice a traffic stop is resorted to only where traffic rules are being violated or there is visible evidenced of a crime in progress. It is justifiable for the Officer to stop and question the driver or ask him to come out of the vehicle for a pat down or for conducting field sobriety tests where DUI is suspected.

A warrantless search can be conducted if there are sufficient grounds to suspect that incriminating or dangerous materials are located in the vehicle. However, the prosecution will need to justify such acts by producing corroborative evidence, proofs, eyewitnesses etc., of the crime that was detected.

The law officer can also, for reasons of ensuring his own safety, pat down the diver and co-passenger for hidden weapons without violating the Fourth Amendment. Establishing a road block checkpoint for checking drivers immediately following a serious crime may be allowed but using a check point for screening drivers for narcotics is violative of the Fourth Amendment.
The Amendment gives some notable relaxations to law enforcement; sniffer dog can be deployed without it being declared as a search, and stops and searches at international borders are permitted more frequently.

Deciding the legality of stops, and search and seizure operations is of vital importance if you are at the receiving end of Police action. The key is to maintain a dignified silence (remember what you say can be used as evidence) and refuse permission to search the vehicle if requested by the patrol Policeman. It is always better to let the lawyer do the talking instead of taking the police head on. The alert citizen would be well within his rights guaranteed by the Fourth Amendment to prevent illegal searches and seizures that could implicate him in any crime. 1800Bail 10061 Talbert Avenue #302, Fountain Valley, CA, 92708 (657) 215-4133

Loan on Title of Car San Antonio helps bad credit

The loan on title of car San Antonio helps bad credit clients overcome the worst odds

The exigencies of a financial emergency provoke the worst fears in a person. If there is enough balance in a savings account we somehow smooth over the emergency demand, but the situation rapidly deteriorates when we run out of greenbacks. The problem lies with the traditional banking system that places undue importance on poor credit reports and uses them to push borrowers to higher interest loans or use bad credit as a plea to deny clients loans. In all such instance clients suffer, even when they prove that they have the wherewithal to repay new loans. The loan on title of car San Antonio avoids the controversy altogether by financing bad credit customers trusting the customers to stick to simpler repayment rules leveraging the income that they declare through standard proofs. The car title loans have over a short period of time gained ascendency and forged a clear path financing financially weaker candidates that would otherwise be ignored by banks.

The chief USP of the loan on title of car San Antonio is leveraging the value of a used car or any other vehicle (truck, boat or two-wheeler) to extend prompt financial assistance to a wide range of customers be it a business man operating an independent venture or a professional managing a top notch career in IT or the simple freelancer with smaller resources. Thousands of clients have benefitted from the largesse of car equity loans by leveraging the equity lying untapped in their personal vehicles.

The vehicle becomes the collateral for any loan on title of car San Antonio and its value is assessed professionally to the mutual advantage of both the lender and the borrower. Just drive your vehicle into a title loan showroom armed with basic documents and documentary proofs and drive away with cash. That is the advantage of an auto collateral loan’s simplified procedure. No more waiting indefinitely for a lender to sit on judgement on one’s bad credit past. No more tedious paper formalities to be complied with that waste valuable time even as an emergency festers in the background – the client gets his cash in double quick time often no longer than fifteen minutes.

title-loan

The singular advantage of the loan on title of car San Antonio is savings in time and money. Time is saved by simplified loan approvals while money is saved by lower interest rates. The lower rate of interest in a car title loan ensures that clients are not handling a loan outstanding that is inflated by interest compounding. With rates frequently touching 30% APR the car title loan borrower knows instantly that he is liable to pay back a smaller loan outstanding than a payday loan applicant or bank loan borrower. In fact the car equity loans get paid back in double quick time because of the stress on lower interest rates.

Even repayment schedules are flexible enough in the loan on title of car San Antonio to accommodate the low income borrower, and repayments are closely tied to a person’s income in such a way that at no point does a title loan applicant end up paying more than he bargained for. The auto collateral loan enables all clients to tailor their borrowings to their income levels so that no client feels compelled to adhere to monthly installments he can’t pay back.

Perhaps the greatest incentive for applying the loan on title of car San Antonio is to have instant access to the loan and the lender at times when a client feels the financial pinch. Just browsing the company’s website presents the opportunity to be instantly aware of the type of title loan and loan quantum that would be available in a crisis situation.

When banks say no and your resources run dry it could be the best moment to access the cash loan for title. The loan on title of car San Antonio effectively meets all your cash problems guaranteeing safety, security and dependability. If you are eager to fulfill your cash demand, your best option is Big Car Title Loans San Antonio 118 Broadway #387 San Antonio, TX 78205 (210) 702-2873. Access a world of customer friendly title loans that deliver cash in a time span less than 15 minutes, and get loans approved regardless of a poor credit background.

Variable Interest Rate Mortgages Are Attracting Prospective Homeowners Like Never Before



The variable interest rate is one of the options available to people on the lookout for creating new mortgages. It came into prominence when fixed home loan interest rates moved beyond reach. Variable interest rates became controversial during the subprime crisis because the majority of homeowners opted for low introductory interest rates that eventually crept up forcing many people to default on their home loan payments.
People are rediscovering the Qik car title loans variable rate of interest
On the surface it would seem rather risky exposing yourself to a rate that fluctuates. But for many it is a risk worth taking if the introductory rates are reasonable enough to make them eligible for home finance. Moreover, the types of variable interest rates operating today are markedly different – they are more like hybrid interest rates where the initial fixed rate of interest is pretty low for a period of up to five years. Following that initial fixed interest period the rate starts changing against its index. To avoid distress to the borrower the rate changes are put through only once every three, five or seven years till it tallies with the index.
So for a pretty long period the borrower faces a stable fixed interest rate regime that allows him to keep his borrowing expenses well within his budgetary constraints. In many plans it is observed that the fixed rate is lower if the initial offer period stays low.
To improve our understanding of the variable rate regime we explain the terms that are commonly used:
The Index rate
This is nothing but the yearly rate for Treasury (CMT) securities, or the Cost of Funds Index (COFI), or the London Interbank Offered Rate (LIBOR) which is leveraged as a threshold rate for fixing the home loan interest rate.
The Margin on your interest rate
This is a fixed percentage that is added to the index to determine your home loan rate. For example, a margin of 1% may be merged to the index of 3% to fix a home loan rate of 4%.
The Cap or maximum interest rate
This is the maximum upper ceiling for any rise in interest rate put through by the lender.
The Lifetime Cap
This gives the borrower a clear idea to what extent the interest rates are likely to rise during the period of his loan repayment. For example a 1/2/6 scenario would imply that the first rate change would be 1% followed by 2% and go all the way up to a 6% increase for the entire loan repayment period.
Getting over the “Payment Shock”
The payment shock is nothing but the inconvenience or added repayment burden a borrower faces when rates move upwards. Before applying the loan the prospective homeowner can talk it over with the loan counselor to crack the numbers and determine how each interest rate movement adds to his monthly repayment installment.
Solid reasons why homeowners refer variable interest rates:
You anticipate higher income
You have discussed with the loan officer and fully understood the implications of each interest rate change, and you feel confident that incremental raise in salary income will be more than enough to take care of higher loan repayment.
You are in the mood to sell before the rate hike hits your repayment
It could be that you are expecting a major promotion or change of residence due to career dynamics and you will be in a position to renovate and sell the home. You get the immediate benefit of lower initial interest rates and you can recoup the original investment through home sale.
You intend to move to a bigger home as your family grows
You are anyhow intending to move to a larger home to accommodate a bigger family, so it makes sense to tap a cheaper home loan that can be repaid early.
Your credit score is not up to the mark
You get time to improve your credit rating and with improved ratings you can opt for a lower interest loan in the near future.
Prices may move against you
You find it difficult to qualify for a fixed rate loan at the moment and you want to settle a good rate before the prices become unfavorable.
Anyway that you look at it, variable rates have a future and many people are finding it prudent to clinch a variable interest loan to make the best use of the favorable rates climate.

Never Let Grocery Expenses Overwhelm Your Budget



You are earning money at a fast clip but you often wonder where all that money goes at an even faster clip, and the reasons are not hard to find – groceries could be the villain of the show, and like a true Hollywood potboiler we need to cut that villain down to size. And you have company; millions of Americans are spending too much money on groceries and the end result is skewed budgets and haphazard finances.
It would be really nice if you could curtail spending on groceries without compromising on a full stocked refrigerator. If that sounds impossible, think again because experts say you it is possible with a capital P.
Here are some useful tips that will make it promising for you to contain expenses on your groceries without breaking the budget or busting the bank:
Try shopping at budget stores or convenience stores
Everybody loves shopping at supermarkets and glitzy malls but the problem with visiting these high profile shopping extravaganzas is that the sheer variety of commodities and brands on display will overwhelm you with choice, and the likelihood is high you will end up lugging a crateful of items you never intended to buy. Basically, supermarkets are living excuses for impulsive shopping that drive grocery expenses up the roof.
Instead of supermarkets why not try shopping at Qik car title loans stores that are tailored exclusively for low price shopping like the popular Aldi and the ubiquitous Bottom Dollar Food. It’s designer shopping but with a huge difference; here prices are not for tailored for royalty, they are designed to fit leaner pockets and meaner budgets. You don’t have to restrain your entire shopping experience to these convenient outlets but you can buy items in bulk at cheaper prices.
The icing on the cake is that your children might find their favourite brands in these outlets, so you are not sacrificing quality at the altar of cost reduction. In fact shopping at these outlets redefines your attitude towards money and budgeting in a positive way, meaning that you will be directed towards consolidating your purchases within your given budget.
Admittedly visiting these stores is an extra effort but it an effort that is well worth the botheration. If you pre-plan your outings and prepare a list of items that you need in advance, you will never go wrong.
Keep an eye out for bargain shopping and discounts
In the lazy old days one had to reach for the news dailies to start clipping coupons, but now it’s much easier because of the reach and accessibility of the internet. You’ll find coupons everywhere associated with nearly every commodity, appliance and service you can imagine. Food, vegetables, cereals, pet foods and an unending stream of supplies is available at the click of a mouse through coupons online, directly accessible to you to pick and choose at leisure. Never hesitate to pick and print as many coupons as you can, using them as and when the need arises but always being mindful of the expiry date.
Grocery shopping can be expensive on an empty stomach
It’s a neat psychological trick that you can put to the litmus test each time you try it – go to the supermarket on a hungry growling stomach and you will find yourself loading your cart with all kinds of goodies that look great just because you happen to be hungry. Now repeat the exercise another day on a full stomach eating just before departure. You will find shopping an entirely new experience. You will be precise, level headed in your decisions, and you end up buying just what you wanted without wasting an extra dime.
The last word
One has free oneself from the attitude that groceries are most essential to daily upkeep and therefore no expense should be spared to keep your fridge and larder well stocked to meet any situation, as the family should never go hungry. Frugality is what should guide you when you purchase groceries or for that matter any other item of necessity. Buy on a need-to basis and not with a must-have attitude. Be very clear what your needs and wants are don’t be afraid to say no to yourself when your wants play spoilsport. It’s OK to pamper yourself and the kids occasionally but not make a habit of it to the extent it ruins your finances. Years down the road your family will be grateful for the savings you generated.

Variable Interest Rate Mortgages Are Attracting Prospective Homeowners Like Never Before

nullThe variable interest rate is one of the options available to people on the lookout for creating new mortgages. It came into prominence when fixed home loan interest rates moved beyond reach. Variable interest rates became controversial during the subprime crisis because the majority of homeowners opted for low introductory interest rates that eventually crept up forcing many people to default on their home loan payments.
People are rediscovering the variable rate of interest
On the surface it would seem rather risky exposing yourself to a rate that fluctuates. But for many it is a risk worth taking if the introductory rates are reasonable enough to make them eligible for home finance. Moreover, the types of variable interest rates operating today are markedly different – they are more like hybrid interest rates where the initial fixed rate of interest is pretty low for a period of up to five years. Following that initial fixed interest period the rate starts changing against its index. To avoid distress to the borrower the rate changes are put through only once every three, five or seven years till it tallies with the index.
So for a pretty long period the borrower faces a stable fixed interest rate regime that allows him to keep his borrowing expenses well within his budgetary constraints. In many plans it is observed that the fixed rate is lower if the initial offer period stays low.
To improve our understanding of the variable rate regime we explain the terms that are commonly used:
The Index rate
This is nothing but the yearly rate for Treasury (CMT) securities, or the Cost of Funds http://www.qikcartitleloans.com/thank-you/ Index (COFI), or the London Interbank Offered Rate (LIBOR) which is leveraged as a threshold rate for fixing the home loan interest rate.
The Margin on your interest rate
This is a fixed percentage that is added to the index to determine your home loan rate. For example, a margin of 1% may be merged to the index of 3% to fix a home loan rate of 4%.
The Cap or maximum interest rate
This is the maximum upper ceiling for any rise in interest rate put through by the lender.
The Lifetime Cap
This gives the borrower a clear idea to what extent the interest rates are likely to rise during the period of his loan repayment. For example a 1/2/6 scenario would imply that the first rate change would be 1% followed by 2% and go all the way up to a 6% increase for the entire loan repayment period.
Getting over the “Payment Shock”
The payment shock is nothing but the inconvenience or added repayment burden a borrower faces when rates move upwards. Before applying the loan the prospective homeowner can talk it over with the loan counselor to crack the numbers and determine how each interest rate movement adds to his monthly repayment installment.
Solid reasons why homeowners refer variable interest rates:
You anticipate higher income
You have discussed with the loan officer and fully understood the implications of each interest rate change, and you feel confident that incremental raise in salary income will be more than enough to take care of higher loan repayment.
You are in the mood to sell before the rate hike hits your repayment
It could be that you are expecting a major promotion or change of residence due to career dynamics and you will be in a position to renovate and sell the home. You get the immediate benefit of lower initial interest rates and you can recoup the original investment through home sale.
You intend to move to a bigger home as your family grows
You are anyhow intending to move to a larger home to accommodate a bigger family, so it makes sense to tap a cheaper home loan that can be repaid early.
Your credit score is not up to the mark
You get time to improve your credit rating and with improved ratings you can opt for a lower interest loan in the near future.
Prices may move against you
You find it difficult to qualify for a fixed rate loan at the moment and you want to settle a good rate before the prices become unfavorable.
Anyway that you look at it, variable rates have a future and many people are finding it prudent to clinch a variable interest loan to make the best use of the favorable rates climate.

Padding Unexpected Expenditure When You Travel



Travel is definitely expensive and major items of expenditure can be accounted for and planned meticulously through pre travel budgeting. The moot question is what do you do for expenses that come unannounced, expenses that surprise you simply because you did not anticipate them? Here are the most frequent expenses triggers that one needs to budget for whenever a trip is in the planning stage.

Not neglecting to provide for departure taxes



These are really expenses that nobody plans for. It’s levied by many countries and is payable in their local currency. Many people assume they have no need for local currency so they arrange to dispose it when they leave the country. The best precaution is to retain a decent amount of the currency till after your customs and immigration clearances are over.

Resort fees that don’t appear in the tariff sheet

In some resorts it is the local practice to club sundry expenses like newspapers, laundry, telephone calls and internet usage under a consolidated resort fee that could range in value from $15 to $35 levied on a per day basis. This has to be enquired and confirmed before you check into the resort.

The problem with expensive airport and in-flight snacks and soft drinks

You ask any seasoned traveler what or how he budgets for food; he will probably tell you that snacks and beverages consume a good share of food expenses over and above the budget that is decided for regular meals. In fact during the course of a flight right from emplaning the aircraft to air travel to exiting the destination airport, a traveler is besieged by a bewildering array of snacks sold at very high prices, most of them individually costing more than meals that won’t be available! It takes monumental determination to negotiate this sea of temptation which could otherwise destroy your wallet.

Never take airline fees for granted

Unlike other services airlines are notorious for exacting fees at every stage of the journey and for a bewildering array of services that we normally take for granted. So if you didn’t bother to check in online, or you carried baggage exceeding airline baggage allowance, you called the airline enquiry when online enquiry portals were active, you asked for a glass of water in-flight, the chances are that a bevy of fees will also be served. So you have to familiarize yourself with all airline guidelines regarding what is available for free and what is not.



Parking expenses could go through the roof

Space is a commodity which is in short supply, especially in major metros. Finding free parking space is a pipedream and sometimes the expenses charged for locating a parking spot might add up to a large figure. So it would be a wise traveler that confirms this core issue before he ventures into outdoor driving.

Roaming Charges can potentially break your back

When a person travels domestically he is usually well aware of current roaming charges for mobile phone use. But when we travel internationally ignorance can be costly, in fact prohibitively costly. Use Wi-Fi where possible instead of expensive internet packages and Skype or a chat app for calls to your home. If the stay is likely to be prolonged it is cheaper to get a local connection.

A Wi-Fi facility may be charged at some destinations

What was a free facility at the home airport may be an expensive proposition when you arrive at a foreign airport, and the best way to protect your interests is to read the airport brochures or airline website to clarify whether the Wi-Fi facility is free. This is an important piece of information because net connectivity is a must for people in transit that may want to access office data or open their personal mail. So it’s better to confirm what you may end up paying for these services.

Expenses that uncertain weather can unleash on you

Uncertain or freaky weather is a downer and expense generator in more ways than one. If, for example, you didn’t anticipate rain you may be compelled to buy a rain coat or umbrella and arrange to waterproof your baggage. Cold weather has similar drawback as you will need to change your clothing for warmer fabrics.



Ultimately, what you budget for a trip domestically or for a trip abroad should be thoroughly researched from every possible angle. Keep these basic pointers in mind to calculate the true cost of travelling outdoors in a world that charges by the minute or hour for services that you mistakenly presumed to be free.

Want To Stash Away Savings For A Rainy Day? Use Money Market Bank Accounts!



With low interest rates and negligible growth prospects, Bank savings accounts are losing their sheen but the same is not true of Money Market Bank Accounts or MMBAs that are more favored options for the growth conscious investor.
This is what makes the Money Market Bank Account worth considering
In money market accounts the rates are linked to movements in the money market where safer government investments and low risk corporate bonds rule the roost. As these instruments yield higher rates, the rates you get for depositing funds in MMBAs is higher than regular savings accounts. These accounts extend nearly all the privileges as regular savings accounts and you are permitted to make maximum six withdrawals in a month (three by check). This increases the savings potential of MMBAs and they are very useful for parking emergency savings.
MMBAs are not the same as Money Market Mutual Funds (MMMFs)
The MMBA is a bank account that attracts FDIC coverage. The MMMF is an investment opportunity that doesn’t enjoy FDIC cover and it exposes you to market risks just like stocks and bonds.
The basics of operating MMBAs
You require at least $1,500 to $2,500 to open an MMBA unlike regular bank savings accounts. Because there are restrictions on the number of withdrawals from such accounts, banks levy stiff penalties if you exceed the permitted withdrawals, so it would be advisable to read the Bank’s rules before opening these accounts. Prepare yourself to keep funds for longer periods to make noticeable growth in savings and refrain from transacting regular payments as you would do in regular savings accounts.
Persons most suited to operating MMBAs
In case of Bank Certificates of Deposit (CDs) you are committed to depositing money for longer periods to enjoy full benefits but an MMBA gives you instant access to cash in emergencies. Purely in terms of yield on your money, the MMBA offers you a solution midway between savings accounts and CDs. You should not assume that an MMBA is a wholly risk free investment. Like stocks and bonds risk is an inherent aspect of an MMBA and you are likely to suffer losses just like stock market investments.
What do we make of Money Market Mutual Funds?
These are market related funds that are linked to short term corporate debt and up to the financial crisis of 2008 they were actually considered to be a safe bet. The crisis exposed their loss making nature. If you don’t mind exposing yourself to a higher market risk then MMMFs offer an attractive growth opportunity. Leaving aside the memories of 2008, MMMFs are still attractive to legions of investors as they feel they can make their emergency funds grow at a reasonably faster clip, and their linkages to safer securities makes them less risky than stocks.
Talking of market risks there is absolutely no guarantee that your returns will consistently outgrow inflation. You will definitely make more money than MMBAs and savings accounts but you also have to prepare yourself for the risk of losing cash. Moreover, the market regulators are chewing their nails trying to bring in legislation governing Mutual funds that will prevent a repetition of 2008. So you need to study these changes and assess how they are likely to impact your investment strategies before taking a leap of faith.
The last word
Consider the Money Market Bank Accounts as a neat compromise between low growth savings accounts and higher yield CDs, where your emergency stash rakes in a decent return to make you sleep soundly. It’s far better than parking money in savings accounts that give you transactional flexibility but deliver slow growth that just doesn’t compete with inflation. It’s less rigid than Certificates of Deposit and allows you greater flexibility in the sense that the money is instantly at your command as liquid cash whenever any emergency threatens you.
The Money Market Mutual Funds are a different piece of cake. They belong to news an altogether different category of risk that compels you to make a choice between low risk medium growth instruments and high risk high growth instruments. The best option is to park your emergency funds in better yielding MMBAs and to park a proportionately lower amount in MMMFs and stocks and bonds in a ratio that spreads the overall risks carefully. Such a division of investments is a must if you want to make serious money in the long term on your hard earned savings.


Frugality Can Be Smartly Exploited To Strengthen Finances



People often carry the impression that one has to be simple and frugal in living or one chooses to live a hyperactive or expensive lifestyle and that both styles of living are poles apart – it’s always one or the other, never together. The end result is that many live a deeply frugal life confining themselves to bare essentials, becoming isolated from life’s joyous pleasures. Others live life to the hilt drinking its elixir to the last dregs so to say and land up ruining their finances after a lifetime of excess. Which lifestyle would you prefer? Not so surprisingly many people would say – neither situation is helpful if pursued alone.
We can illustrate the dilemma with an example; let’s say you have accumulated a gargantuan debt; a credit card outstanding that could put your ancestors to shame, and you are suddenly forced into a life of extreme frugality to generate funds to repay that debt. Your life changes dramatically, you switch off the A/C occasionally, you are mindful of purchases, you completely avoid extravagances and you probably continue doing that and more till the debt is over. But what happens after the debt mountain is flattened? Nine on ten you emerge a wiser individual choosing to live frugally where necessary, but bringing leisure and entrainment and travel back into the family itinerary.
Perhaps that’s the lesson we ought to learn – the lesson of living life frugally, yet smartly as the situation warrants. Here are some tips to help you on that humble path:
Being smartly frugal for more.. revving up your retirement fund
Freak out on one or maybe two days in a week but devote the remaining days to aggressively lowering your bills in ways that are practical but not back breaking. Those days live a steady normal life not the fast paced frenetic type. By practicing a frugal life you may have eliminated some debts; immediately divert those loan payments to a vibrantly diversified retirement plan that takes care of your future while you work hard and enjoy the present.
Being smartly frugal to accumulate an emergency fund
Most people tend to forget that they can choose to be frugal for a specific purpose or to attain a specific goal and not let frugality take the spice and cheer out of their lives. Look around you – you may unconsciously be pursuing habits and customs that are basically unhealthy or eco unfriendly or energy wasting and all these activities could be expenditure traps sucking away your hard earned money. Take smoking for example – try dropping the habit five days a week and calculate the money saved. Do the same for other areas and see your savings grow. Next divert these savings every week to the emergency fund. Repeat week after week and watch the emergency fund rise to unexpected levels.
Frugality creates more opportunities for big ticket spending
Now that sounds very contradictory doesn’t it? What we meant is that you can use frugal living to generate savings over time that can be exploited to purchase big ticket items or finance major home renovation for instance. In fact the very act of saving up to buy the items we always wanted is an art that has been forgotten in our “Buy now and pay later” culture. Of course savings will take time to accumulate but making your dreams come true that way becomes a more fulfilling experience. Moreover, you will have a home devoid of excessive clutter.
Frugality is a weapon securing an uncertain future
It’s impossible to foresee what will happen in the future despite being surrounded by all manner of conveniences and comforts and when everything seems so cozy and normal today. But if you adopt a reasonably frugal lifestyle you will realize that there is tremendous potential in the savings that are generated by frugal actions. You will be creating money that can be set aside for the future literally for any purpose whatsoever.
It could be your daughter’s marriage, son’s business venture, home renovation, buying additional property and an umpteen number of things that you may not have thought about deeply. Supposing you suffer a natural catastrophe or a calamity or even a medical emergency, you will need to draw on hidden reserves and it will do you a world of good if you have taken sufficient care to build those reserves.