Applying for a Home Loan

The process of applying for a home loan is not as challenging as most people think. It is actually a lot like applying for any other major funding. There will invariably be more loan terms and features to consider, however, and people must make sure that they are locking into agreements that they can afford to uphold throughout the years.

Find A Good Lender

The first step in this process is to find a good lender. Prospective borrowers can do this by shopping different lending institutions on their own or by working with seasoned mortgage brokers. If you are in Australia you should check out low deposit home loans by Homestart. Brokers help consumers find loan offers that are best-suited to their credit profiles and their short and long-term goals. Their industry experience can make up for any funding knowledge that the borrower lacks.

Choose A Funding Product

Once people have identified reputable lending institutions to work with, they will need to find home loan offers that they are qualified for and that will help them to meet their purchasing goals. They should consider the length of these loans, whether prepayment penalties exist, how much they will have to pay in ownership and loan costs overall and whether their home loan interest rates are fixed or variable. There are both benefits and drawbacks for all home loan types and thus, people should spend a significant amount of time weighing their options before making any commitments.

Applying For A Home Loan

The final step in this process is to apply for the home loan. Lenders will require a comprehensive array of employment, asset and income related information. They will want to know more about the prospective borrower’s existing debts, length of employment and purchasing intentions among other things. If approved, the property that is purchased will be used as collateral for the home loan. Thus, lenders often want to make sure that borrowers are making wise and profitable investments as well.

Giving Stuff to Charity

If I’m going to live in a van I need to get rid of some stuff.  Even though I live in a studio apartment and don’t buy very much I still have too much stuff.  I need to go through it all and see what I need to keep and what can be sold or given away.  I don’t think there is much worth selling but I’ll probably give away a lot of stuff on Craigslist of Freecycle.  It is kind of amazing that even though I try to only buy stuff when it is really necessary I’ve still managed to accumulate a lot of stuff.  Not near as much stuff as most people who fill their garages with all their extra stuff but still a lot.  It makes me wonder how much money is spent each year on stuff that is barely or never used and then just goes into storage.

The late George Carlin had a lot to say about stuff.

There is also a good chance that I will give some of my stuff to charity. After all, if I don’t need these items, maybe I can give them to someone less fortunate who can use them. Old clothing and furniture can come in particularly handy for those in need, as they might not have the resources to purchase these items for themselves.

Another thing that I am considering doing is making a sponsored boat donation. Through this program, you can donate your boat for a good cause. I currently have one in storage and I’m looking to receive some sizable tax credits for my troubles. The boat will be sold at auction with the proceeds going to a children’s charity. I am trying to downsize as much as possible to save money, and quite frankly, paying to store this boat is eating up some valuable resources every month.

In the end, this boat donation program really is the best of both worlds, since I don’t want to have my old boat in storage any longer and would love the opportunity to help those who are less fortunate. The tax benefit is like the icing on the cake, as we all could use some deductions when the taxman comes calling.

How to: Reduce your life insurance premiums

Life insurance is always a worthwhile investment, but as a long-term payment plan it can also have a considerable effect on your bank balance. So before rushing into a policy, it’s worth taking some time to ensure you’re getting the best value for money on the market. Here are a few handy hints for scoring a lower premium without compromising the quality of your cover.

Compare the market

Insurance premiums and the levels of cover they entail vary considerably from insurer to insurer, so it’s always worth checking out a variety of options before you make your choice. Price comparison websites can be useful in this regard, but remember that not everybody uses them. It might be more useful to compile a list of the leading insurance companies and research which of them can offer you the best value. It’s a little more time consuming, but the savings you could make really do justify the effort.

Look for insurance companies that cater to your needs

Some insurance companies cater specifically to one section of the market, allowing them to negotiate better value for their demographic. For example some companies only offer insurance to the over 50s, while others cater to couples, under 30s and people with health problems. Draw up a list of any factors that may affect your insurance, and then spend some time finding out if any companies offer policies that reflect your needs.

Separate your policies

If you’re part of a couple, and particularly if you’re parents, it might seem to make sense to take out a joint life insurance policy to simplify your affairs. While this is true in some cases, there are downsides to this. Because both partners are insured for the same amount, factors such as differing age, health or income might not be factored in, meaning two individual life insurance policies – possibly even from different insurers – might provide better value.

Keep an eye on inflation

Some insurance providers will automatically raise your premiums to reflect inflation, meaning your ultimate pay-out retains its value. This is obviously a good benefit and something worth looking out for. However if you’re struggling to afford your monthly premiums you might have the option to freeze your increases, either temporarily or permanently, to make it easier to keep up your payments. It isn’t an ideal solution, but it’s preferable to stopping your insurance altogether.

Improve your general health

Some companies will charge a higher monthly premium if you’re in poor health. Losing weight, quitting smoking and taking regular exercise are all ways to improve your general wellbeing that can also pay off financially.

If you have pre-existing health problems, there are some companies, such as RIAS Insurance, that don’t require you to provide medical information, so these might be your best option for affordable cover.

Money Mistakes We Can All Do Without

We all need to be more frugal with our money. Not only in cutting out unnecessary expenses and looking at the best interest rates on savings to actually put something away for the future, but not wasting money by making simple mistakes either.

Too many of us do it, and it’s too easy to do and it’s time to cut it out. Here are the money mistakes we can all do without.

Renewing with your existing car insurance provider

When it’s time to renew, it may seem a lot easier to go with the same provider, but you can save yourself a lot by shopping around. Go onto some comparison websites and ensure you are getting the best value for money in the market. According to figures earlier this year, the average amount people save by not simply auto-renewing is a staggering £384.64.

Exceeding your overdraft limit or going overdrawn without permission

Your overdraft is there as a safety net. But it’s worth remembering it’s not actually your money, with every penny of it needing to be paid bank to the bank. Whilst sometimes we can’t help falling into this safety net, if you do it without agreement or you exceed your limit you will be charged. Most banks will charge you a daily rate until you rectify it. It’s dead money you’ll never get back.

Not using your full ISA allowance

For the current tax year you can save £5,640 in a Cash ISA, without paying any tax on the interest. With an investment ISA, you can invest savings of up to £11,280 without any need to pay income or capital gains tax. This allowance can’t be carried over until next year therefore, if you have savings in other accounts but haven’t transferred them to you ISA to make up the yearly allowance, you’ll be losing out in terms of tax. An ISA should always be your savings starting point.

Missing a payment on your 0% credit card

There are loads of great deals on 0% credit cards out there. But don’t miss your minimum monthly payments, as if you do you’ll lose your 0% perk. Once the interest starts to kick in you could spiral into debt and a credit card is very expensive if the full monthly statement isn’t paid in full.

Not setting up a direct debit for your energy bills

By setting up a direct debit on your energy bills you’ll be offered deals by your energy supplier. This is because you’re effectively guaranteeing to pay them the money, rather than them issuing you a quarterly bill. If you over pay, you’ll get credit which will make your bills cheaper down the line.

Man Cannot Live on the Power of Attraction Alone

Today there is a huge movement on the power of attraction. People everywhere are being convinced they can focus on something enough and it will magically come into their lives. While this is not to say the theory isn’t excellent, and that it might not work, it is unrealistic to expect you can sit on your sofa and do nothing in order to achieve your goals. Yes, you can do your absolute best to manifest all your bills being paid off by some unknown source, but in the meantime, it might be a good idea to get out there and take steps to get your own bills paid.
Finding Something from Nothing
If you are a firm believer in the power of attraction and miscellaneous gifts being sent to you out of nowhere, then it should not surprise you that you actually have the power to find some of those gifts. Again, you will have to work for what you want, whether mentally or physically. If you are working at a dead-end job and do not make enough money to sustain your family, you might consider unconventional methods of bringing surplus cash in. For example, you can sell your gold at any number of places. If you have no food and your electric is in danger of being turned off, it does not seem anyone would care that you are not wearing jewelry, especially you.
Manifest a Comfortable Budget
Instead of laying back each night picturing a brand new, shiny jaguar, picture your family living on a budget that allows them to survive at ease. Imagine you are living a good life in which no one has to wonder where his or her next meal is coming from. These are not only more important goals than owning a sport car, but they are of course more attainable. Why not focus your mental power on making sure your family is comfortable, again meaning you will have some legwork to do.
Learning How to Carefully Budget
If you ask anyone who lives on a tight budget, yet manages to survive, you will find that it is not an easy task. However, when a plan is implemented and not deviated from, it is possible. Take advice from others who do instead of think. The key to your power of attraction is that you cannot possibly open your mind to new possibilities while the weight of the world lies on your shoulders. Create a less stressful atmosphere for yourself by eliminating some of your financial stress. This can be done by cutting back on unneeded expenses, and allocating your money wisely.

Ways to Finance Business Expenses Using Cash Flow

Every business entity has the problem of financing its needs. The solution is always found in cash flow management. Businesses sometimes have a surplus of cash, and at other times they have a shortage. The successful business plans for both situations.

Some of the strategies that may be used to finance expenses are as follows:

Short Term Bank Loans

Although these loans are convenient, you should carefully consider the amount of interest that you will pay. If you are borrowing to pay expenses, the interest is increasing your expenses.

Loans from Corporate Officers

These loans may be interest free or lower than bank rates. These loans give the lender the status of creditor, and he or she is among the first paid in the even of bankruptcy.

Business Credit Cards

In addition to helping control cash flow, business credit cards add rewards. If the debt is paid by the due date, credit cards are very effective in creative cash flow.

Selling Fully Depreciated or Obsolete Assets

This strategy can be coordinated with a period of large expense or the purchase of additional assets.

Selling Additional Stock

Although cash becomes available, ownership loses some control of the business. Careful computations should be made so that control is not in the hands of the wrong people.

Issuance of Corporate Bonds

This method should not be used for short term expenses. Although cash flow is increased, bonds should be used for larger corporates assets.

Offering Discounts to Customers

Although you will not collect the full payment for your services, you will increase your cash immediately. When you have the cash available, you can take advantage of cash discounts.

Asset Management

Assets used in any business should be properly maintained for operating efficiency. In addition, equipment should be periodically evaluated to determine that that it is maintaining a sufficient return on investment. The more efficiently business assets are used, the more profits are maximized. Look online for examples of how to finance larger expenses and manage assets to maximize profits.

Keep in mind that successful business entrepreneurs know their inventory and expenses frontwards and back. Even a products and services page as extensive as the PT6A maintenance at will be looked in a granular way, sizing up orders down to the nuts and bolts. That’s because successful business owners realize that they need the exact amount of cash to pay each bill on the day it is due. They also know that debts should never be paid early except to take advantage of discounts. For that reason, cash flow managers develop cash flow plans at least six months in advance.