Getting Money Wise http://www.gettingmoneywise.com Wise Personal Finance Advice Mon, 21 Jul 2014 00:10:09 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.1 What You Need to Know Before Filing for Bankruptcy http://www.gettingmoneywise.com/2014/07/what-you-need-to-know-before-filing-for-bankruptcy.html?utm_source=rss&utm_medium=rss&utm_campaign=what-you-need-to-know-before-filing-for-bankruptcy http://www.gettingmoneywise.com/2014/07/what-you-need-to-know-before-filing-for-bankruptcy.html#comments Tue, 15 Jul 2014 19:05:10 +0000 http://www.gettingmoneywise.com/?p=13355 Millions of Americans are stuck firmly between a rock and a hard place when it comes to their personal finances. Of those, many are at a place where they start to wonder whether filing for bankruptcy is appropriate for their particular financial situation. Many people (incorrectly) assume that bankruptcy is just a means to wipe ...

The post What You Need to Know Before Filing for Bankruptcy appeared first on Getting Money Wise.

]]>
Millions of Americans are stuck firmly between a rock and a hard place when it comes to their personal finances. Of those, many are at a place where they start to wonder whether filing for bankruptcy is appropriate for their particular financial situation.

Many people (incorrectly) assume that bankruptcy is just a means to wipe all of your debt while giving you a clear slate in which to start over. While this is mostly true of Chapter 7 bankruptcy, Chapter 10 and Chapter 13 may provide a better course of action and get you back on track sooner than a Chapter 7. With Chapter 10 and Chapter 13, your debts are consolidated into one monthly payment, and it’ll stop collectors as long as you maintain your payment schedule.

Bankruptcy Questions  For Attorney 300x213 What You Need to Know Before Filing for Bankruptcy

I should also mention that meeting with an attorney to go over the different types of bankruptcy and how they affect your individual financial situation, as well as your future goals, is a prudent course of action.

Before you do that, here are a few things that you may want to ask your attorney.

What type(s) of bankruptcy are you eligible for?

Chapter 7 bankruptcy could be off the table if you have enough monthly income to repay your debts in a Chapter 13 plan. On the flip side of that, you may not be eligible to file for Chapter 13 if your debts are too high, or if your income is too low.

Will you lose your house, car, boat, RV, or other assets?

These sorts of questions are best answered by an attorney, but the short version is: it depends. While all bankruptcy declarations are passed through federal courts, it’s up to your state to decide what sort of things are exempt from bankruptcy filings. In general, your mortgage won’t be covered, and you may lose the house if you have a lot of equity in it.

The same goes for car and vehicle loans. Once again, this is a state-by-state and situation-by-situation problem that’s best left to a discussion with a qualified attorney.

Will your credit card debt be covered?

In most cases, it will. The exceptions to this rule are if you spent extravagantly in the months prior to your bankruptcy, or if you lied on your application.

Will your 401(k), IRA, pension, or life insurance plan be affected?

Generally, they won’t. However, there are some states that don’t protect your investment accounts as well as others, and may seize all or parts of them in order collect a portion of the debt owed.

Are co-signers on your outstanding loans going to be stuck with your debt?

Under a Chapter 13 plan, co-signers are protected from having to repay your debt. On a Chapter 7 plan, they may be required to take on the debt that you don’t pay.

In addition to these questions, it’s important that you understand which debts aren’t going to be covered by your bankruptcy filing. A short list would be student loans, child support payments, and most payments owed to the IRS on earned income.

Understanding the process and the long term implications of bankruptcy leads you to better understanding the benefits as well as the drawbacks of filing. Only you can make this decision, and it’s a conversation best had with a qualified bankruptcy attorney in your area.

The post What You Need to Know Before Filing for Bankruptcy appeared first on Getting Money Wise.

]]>
http://www.gettingmoneywise.com/2014/07/what-you-need-to-know-before-filing-for-bankruptcy.html/feed/ 0
10 Common Pitfalls in Property Investment http://www.gettingmoneywise.com/2014/07/10-common-pitfalls-in-property-investment.html?utm_source=rss&utm_medium=rss&utm_campaign=10-common-pitfalls-in-property-investment http://www.gettingmoneywise.com/2014/07/10-common-pitfalls-in-property-investment.html#comments Mon, 14 Jul 2014 15:11:40 +0000 http://www.gettingmoneywise.com/?p=13353 At some point in your life, investing in properties will look like a very feasible option. If that’s right now and you’ve got the dough, you should go right ahead and give it a shot. But before you do, please make sure you know what you’re getting into. Money doesn’t grow on trees so you’re ...

The post 10 Common Pitfalls in Property Investment appeared first on Getting Money Wise.

]]>
At some point in your life, investing in properties will look like a very feasible option. If that’s right now and you’ve got the dough, you should go right ahead and give it a shot. But before you do, please make sure you know what you’re getting into. Money doesn’t grow on trees so you’re going to want to make sure you’re making the right investments as much as possible. There will always be risks involved in real estate investment but there are ways to protect yourself, one of which is to avoid the many pitfalls that investors like you fall prey to.

real estate1 300x200 10 Common Pitfalls in Property Investment

Some of the common pitfalls in property investment include:

Winging it

One of the biggest mistakes you’ll ever do is to go into property investments without a plan. Sure, there are many things in life you can plan as you go but investing isn’t one of them. Don’t work backwards. Don’t buy a house because of a good deal only to start thinking afterwards what you would do with it. Start with a plan and then find a property that fits that plan.

Having a get-rich-quick mindset

There’s really no harm in wanting to earn some quick cash but that kind of thinking affects how you’ll go about property investments, setting you with unrealistic expectations and that’s not a good thing. The infomercials may have made it sound so easy but it’s not as easy as you think. There’s hard work to be done to make investments work and you have to be willing to do just that. This isn’t to say that property investments will always be an uphill battle but you have to understand that you won’t go anywhere with doing nothing.

Going solo

Investing in properties involves a myriad of aspects that each can only be handled effectively by a professional in that field. As such, trying to do it all on your own just won’t work. You need a team with at least a real estate agent, a home inspector, an appraiser, a lender, and a closing attorney, and you’ll need them for both your own deals and the deals you wish to arrange for other buyers. You should also consider having a maintenance team with an all-around handyman, a cleaning service, a lawn maintenance service, a plumber, a painter, a roofer, a flooring installer, an electrician, and an HVAC contractor. You just won’t have time to be an investor when you’re doing everything else. Delegating tasks will free enough room for you to focus as an investor, which will certainly increase your chances at success.

Spending too much on a property

To make profit, you have to gain more than what you spent. It is necessary to spend because you need to sow seeds to reap anything. Before you buy a property, you should already have an idea as to how much profit you will be making. Mistakes in analysis can happen though so you end up paying too much and getting so little profit. Avoid this by practicing due diligence.

Skimping on homework

Knowledge is power and this applies as well to investing. Don’t be like so many wannabes eager to invest all of their assets without asking so much as one question. Take the time to educate yourself about investing so you don’t end up endangering your financial security due to a botched investment. Read books. Attend seminars. Talk to rental property owners. A lot of the resources you can check out are available free of charge so there shouldn’t be any reason why you can’t brush up on investments first before making one yourself.

Acting too rash

It’s easy to get excited when finalizing a deal. It’s also typical for investors to move quickly through transactions but that doesn’t excuse acting too rash, like signing contracts and writing checks without having done your research. Just because a house looks pretty on the outside doesn’t automatically mean it will be just as good on the inside. Take the time to actually visit the property so you know what you’re getting yourself into. Don’t buy property just because you think it will appreciate, but because you know it will appreciate as supported by research on the market.

Not going with the flow (of cash)

A proper cash flow is essential to holding and renting out properties because this will ensure maintenance costs are covered. You can’t just get a property manager because many usually prefer larger properties over single-family homes. There’s also the fact that property managers are commonly paid between 7% and 10% of the rent per month and that could be a huge expense. If you’re going to be shelling out that much on top of maintenance costs, you might as well just put your cash in a mutual fund. It can take up to six months before a property is leased so you have to make sure that you have enough to cover costs by at least that much. If you don’t factor that into your budget, you might end up broke before you get the property off the market.

Taking your time

While it’s not ideal to be rushing about, neither is just focusing on one deal at a time. If you’re going at that rate, you’re not running a business (yes, investing is a business). Rather, you’re just handling transactions. What you want is steady flow of prospective deals. With enough deals to go over, you’ll be able to weed out the ones that are not so lucrative to let the real gems shine through. You won’t have that opportunity to compare options if you don’t have anything to compare to begin with.

Cornering yourself

A lot of people buy property but get stuck with it because they’ve run out of ways to dispose of it, mostly only either planning to sell or rent it out. But what if the plan you chose doesn’t pan out? Always have a contingency plan for when your primary doesn’t work out so you won’t be stuck with a property on the losing end. For example, if your plan A is to sell, make renting it out plan B or at least a lease-purchase option you can present to the buyer. Now you’ve got a plan C as well. If plans A, B, and C don’t work out, you can resort to plan D: sell at below-market prices to another investor. This will not make you the profits you have hoped at first but at least this will help you cut your losses sooner.

Miscalculated estimates

Investments will always have you working with estimates but they’re a good gauge of what you stand to gain or lose. To be on the safest side, get what you’ve calculated and double the time and cost you think it would take. If it’s still projected to give you profit and yet the option to rent it out is still open, it’s leaning towards being a good deal.

Do it right the first time!
There are a lot of properties you can invest in. Homes, apartments, and condominiums are available for the taking, each one offering an opportunity for you to invest in real estate and enjoy profits. Investing in real estate is not a walk in the park but you are generally assured that whatever effort you put into it will be rewarded. There will always be risks but knowing what you’re getting into will help you navigate the maze to get to your goal. Learn from the people that have gone before you and don’t let these common pitfalls in investment get in your way of success.

The post 10 Common Pitfalls in Property Investment appeared first on Getting Money Wise.

]]>
http://www.gettingmoneywise.com/2014/07/10-common-pitfalls-in-property-investment.html/feed/ 0
Paying off Debt is like Losing Weight: It Takes Time http://www.gettingmoneywise.com/2014/07/paying-off-debt-is-like-losing-weight-it-takes-time.html?utm_source=rss&utm_medium=rss&utm_campaign=paying-off-debt-is-like-losing-weight-it-takes-time http://www.gettingmoneywise.com/2014/07/paying-off-debt-is-like-losing-weight-it-takes-time.html#comments Thu, 03 Jul 2014 16:48:45 +0000 http://www.gettingmoneywise.com/?p=13348 Paying off your debt is a lot like losing weight. If you ever tried to diet in hopes of losing weight, and who of us never has, you already know that paying off debt is going to be a tough battle. But when you start to see the pounds shedding off, you realize that if ...

The post Paying off Debt is like Losing Weight: It Takes Time appeared first on Getting Money Wise.

]]>
Paying off your debt is a lot like losing weight. If you ever tried to diet in hopes of losing weight, and who of us never has, you already know that paying off debt is going to be a tough battle. But when you start to see the pounds shedding off, you realize that if you stick with it, you will succeed. Unfortunately, many individuals think that losing weight can only be done through a near starvation diet with a whole lot of suffering. That mistaken thinking carries over to paying off debt as well.

paying det losing weight 300x216 Paying off Debt is like Losing Weight: It Takes Time

Most believe that the key to getting out of debt is to develop a tight budget, stick to it, and take the extra money saved and pay it towards the debt. This is a good plan, but it leaves out the most important point, that is, changing our attitude towards debt. When it comes to losing weight, if we want to keep the weight off permanently, we have to change our attitude towards food. We might know what it takes to lose weight but if we only commit to a short term fix then we are setting ourselves up for failure. The same goes for debt.

If we view our new commitment to getting out of debt with a diet mentality, then we’ll only see the process as a series of sacrifices and self-denial. We may succeed in the short term and see our debt reduce over the short term, but we’ll never be able to maintain a debt free outlook over time. Look at it another way, how many people do you know that have been dieting for ten years? Hopefully none. That’s because dieting is a short term fix. On the other hand reducing your debt is a long term commitment.

Following are some strategies to get you started on paying off your debt and developing the long term mentality to keep you debt free.

Set realistic goals

Come up with a realistic plan for paying off your debt. For example, vow to get rid of all credit cards with the exception of one for emergencies. Then clearly state what will constitute an emergency.

Set milestones along the way and reward yourself for reaching them

If you’ve sworn off eating out, celebrate reaching a goal with a dinner out. The point is to keep yourself motivated.

Look for viable options to help you reduce debt

A number of different debt consolidation programs are available that negotiate lower interest rates and fees from creditors. Other programs are also available including debt settlement, debt negotiation, and repayment plans. Carefully consider your circumstances and look for avenues that might you reduce your debt.

Realize it’s a slow process

Paying off your debt will take years of steady effort. If you’re like most, your debt built up slowly over time to the point where it is now. Instead of looking at your debt as a whole, break it down into manageable chunks and set mini goals for paying these off.

Kick start your efforts should your motivation weaken

If your momentum looks like it’s about to grind to a halt, look for ways to boost your efforts. For example, sell something you no longer use or get creative in earning some extra money that can go against your debt.

Finally, keep your focus on becoming debt free. Look forward to the time when you no longer have debt. By focusing on the long term the short term pitfalls won’t throw you totally off course. Visualize how you will feel the day you make your last debt payment.

Paying off debt is a long term process. It takes discipline and commitment. But if you follow the strategies above you will be well on your way to succeeding.

Image courtesy of www.coachcalorie.com

Gale Newell has been in the debt collection industry for nearly 20 years, primarily in banking. She has seen more than her share of the damage debt can wreak on happiness and finances.

The post Paying off Debt is like Losing Weight: It Takes Time appeared first on Getting Money Wise.

]]>
http://www.gettingmoneywise.com/2014/07/paying-off-debt-is-like-losing-weight-it-takes-time.html/feed/ 0
Top 7 Industries to Invest and Venture in http://www.gettingmoneywise.com/2014/06/top-7-industries-to-invest-and-venture-in.html?utm_source=rss&utm_medium=rss&utm_campaign=top-7-industries-to-invest-and-venture-in http://www.gettingmoneywise.com/2014/06/top-7-industries-to-invest-and-venture-in.html#comments Thu, 26 Jun 2014 14:53:34 +0000 http://www.gettingmoneywise.com/?p=13318 Whether you’re thinking about retiring, or just wanting to get ahead early in your career, investing is one of the smartest ways to secure a financial future. Investing is a risk, but it’s not supposed to be scary as long as you are wise enough in choosing where to invest your money. The best way ...

The post Top 7 Industries to Invest and Venture in appeared first on Getting Money Wise.

]]>
Whether you’re thinking about retiring, or just wanting to get ahead early in your career, investing is one of the smartest ways to secure a financial future. Investing is a risk, but it’s not supposed to be scary as long as you are wise enough in choosing where to invest your money. The best way to make sound investment decisions is to understand how certain sectors work, so that you may know which ones can offer the highest chances of a good return.

top industries to invest in 300x144 Top 7 Industries to Invest and Venture in

Significant events such as new legislation and regulations, product releases and encouraging forecast numbers of the general economy have caused analysts to pinpoint certain key sectors for prominent investment performance. In any case; it is always a wise strategy to invest in a diversified set of industries.

 

In no particular order, below is a list of the most lucrative markets you should consider investing in. It is a highly diversified list, and you may be confused as to why these industries are combined in one list, but trust that these are the areas where in your money would most likely be multiplied. Remember, rule number one in investing is to diversify your portfolio.

Top Industries To Invest & Venture In

Real Estate

According to an article published on Bloomberg, high-profile bank holding company Morgan Stanley says that U.S. millionaires consider real estate as the top alternative-investment class to own this year, with about 77% of these millionaires owning assets in real estate.

real estate 300x200 Top 7 Industries to Invest and Venture in

Image 1

Real estate investments pose minimal risks because there is so much you can do with any given property. Commercial and residential spaces, for instance, can be rented out easily to get your investment moving right away. With the growing condo rental market, you can offer to rent out your property at a competitive rate and get favorable returns. For those looking to sell properties, houses, and condominiums, investing in a number of properties in high-demand areas is a great way to jumpstart your real estate venture.

Real estate is a good investment because although it may take a while to receive capital gain from it, real estate assets are highly practical and can be your safest bet in investing. The effects of the real estate industry to the economy have been nothing short of rewarding in recent years, so you can be sure to have a promising investment in this sector. Keep in mind that regularly following trends in the real estate industry will help you steer your investment to greater heights.

New Media

For those who have existing business ventures, riding the new media wave is an effective way of adding value to any investment you have in play. This involves the strategic use of social media marketing, blogging, search engine optimization (SEO) and other online mechanisms to develop an online community that can actively engage with a particular brand.

new media 300x168 Top 7 Industries to Invest and Venture in

Image 2

According to a research done by Forrester® in May 2013, brands that have a strong online presence are more likely to gain a loyal following among their customers. A blog, for example, can leverage your brand as an expert in a certain field. A Facebook page can make your brand more accessible to the younger community, and a strategic position in major search engines can expose your brand to a sizeable market you otherwise cannot reach with traditional media.

New media marketing is an investment in itself, so to speak, and reaps profit in the most unconventional ways possible. However, since new media is a relatively new concept, investors must seek the help of professionals and learn from the best SEO and digital marketers before fully committing to invest. This is to guarantee that all online marketing tools are used to their full potential.

Once you fully understand how new media can be part of a bigger marketing scheme, you will be amazed at how you can make blogging and social media a consistent income driver. This does not come easy, but once you learn how to tame your social media self and discover ways to use social media to your advantage, you will see how this may have been the best investment you have ever made.

Technology

According to an article of the International Banker, the stock market has seen a very positive turn for the technology industry in the previous year. Major tech companies such as Google, Facebook, and Amazon contributed to the massive growth of the tech industry in terms of generated returns.

technology 300x168 Top 7 Industries to Invest and Venture in

Image 3

Technology companies have always been seen as engines of growth, and are often very competitive in using the seeds of innovation to their economical advantage. While not everyone can invest in large-cap stocks such as those mentioned above, anyone can choose a solid technology stock to invest in. Just be sure to invest in a company with a strong foundation and clear vision of where it is headed. This is why you must start by researching the companies you plan to invest in. Understand their products and see how they fare against their competitors. This will give you a strong investment advantage.

Security

The security industry underwent a massive growth worldwide over the previous years.

security 300x145 Top 7 Industries to Invest and Venture in

Image 4

According to ASIS International President Geoff Craighead, CCP, numerous factors stirred rapid advancements in the security industry. These factors, which include a heightened threat environment, brought forth a significant overall growth in technology and key services in various security markets. This, in turn, increased the demand for skilled workers at all levels within the security management structure. This significant and fast-paced growth enthused a great number of investors to take notice. This could also be a good area for you to explore, if you are seeking a new industry to invest in.

Consumer Staples

In a market full of economic fluctuations, it is always best to invest in non-cyclical stocks.

consumer staples 300x200 Top 7 Industries to Invest and Venture in

Image 5

Non-cyclical stocks, simply put, are consumer staples that are not readily affected by changes in the economy. Meaning to say, in times of recession, non-cyclical stocks have a very low propensity of crashing. There is low volatility in this market, making it a safe investment bet during tough times. Examples of non-cyclical goods are utilities, household non-durables, and tobacco.

Healthcare

The healthcare industry has been doing well for a fairly long period as of date. Since this market relies on the elderly population and people who frequent the medical field, it is very unlikely that its market relevance will die down anytime soon. Majority of the abovementioned population are supported by retirement plans and annuity assistance, which also count as investments.

healthcare 300x225 Top 7 Industries to Invest and Venture in

Image 6

There is no data that points to a decrease in this sector’s market share, making it a sound choice for investors seeking a sizeable amount of returns.

Oil

Even though the oil industry often experiences large depreciation changes that cause major fluctuations in its value as an investment sector, many investment experts would still bank on the profitability of this market. This is because the oil industry provides a diverse set of options for the potential investor. You can invest in an indirect stock that is energy-related, a single commodity that involves only oil, or a multi-commodity stock that covers a variety of energy commodities.

oil 300x225 Top 7 Industries to Invest and Venture in

Image 7

In any case, with a demand reaching up to 86 million to 87 million barrels per day (according to the Organization of Petroleum Exporting Countries or OPEC), it is safe to assume that the oil market will continue to perform as a top investment sector as long as it is a main commodity worldwide.

John Anderson is a writer and an Executive Street Contributor. He runs the blog InfiltrationAlert.com

The post Top 7 Industries to Invest and Venture in appeared first on Getting Money Wise.

]]>
http://www.gettingmoneywise.com/2014/06/top-7-industries-to-invest-and-venture-in.html/feed/ 0
Advantages & Disadvantages of Debt Consolidation Loans http://www.gettingmoneywise.com/2014/06/advantages-disadvantages-debt-consolidation-loans.html?utm_source=rss&utm_medium=rss&utm_campaign=advantages-disadvantages-debt-consolidation-loans http://www.gettingmoneywise.com/2014/06/advantages-disadvantages-debt-consolidation-loans.html#comments Wed, 25 Jun 2014 17:59:01 +0000 http://www.gettingmoneywise.com/?p=13305 Let’s face it! Debt Consolidation Loans are not a great discussion topic when it comes to personal finance. For that matter, anything to do with “debt” is not always pleasant but like it or not, debt is a big part of our lives. There are a lot of successful ways to reduce debt but there ...

The post Advantages & Disadvantages of Debt Consolidation Loans appeared first on Getting Money Wise.

]]>
Let’s face it! Debt Consolidation Loans are not a great discussion topic when it comes to personal finance. For that matter, anything to do with “debt” is not always pleasant but like it or not, debt is a big part of our lives. There are a lot of successful ways to reduce debt but there are situations where frugality and discipline aren’t enough to manage debt. It’s for situations like these that debt consolidation loans might come in handy. However, debt consolidation loans have earned some bad press and there are a lot of the so-called “debt consolidation” companies that end up doing more harm than good. So, the first step in the process is to understand the basics of debt consolidation before you consider opting for a debt consolidation loan.

advantages disadvantages debt consolidation loan 300x118 Advantages & Disadvantages of Debt Consolidation Loans

Even if you have gotten a hang of debt consolidation basics and realize that your debt situation demands that you get a debt consolidation loan it is worthwhile to go a little deeper in understanding both sides of debt consolidation loans. Once you understand both the advantages and disadvantages of debt consolidation loans, you will be in a much better position to determine if debt consolidation loan is really for you.

Advantages of Debt Consolidation Loans

  • Easier to Track & Manage Debts: With debts spread across multiple financial institutions it becomes a nightmare to track & manage debts. Amidst all this confusion, there is a risk of missing the payment deadline for one of the loans and accruing late payment fees on top of the already unmanageable debt. With a debt consolidation loan, you are literally consolidating all your debt in one place which makes it easier to track and manage your progress with debt.
  • Lower Interest Rate:In most cases where debt consolidation is required, chances are that most of the debt is high interest such as credit card purchases and consumer loans for electronics etc. In such a scenario, a debt consolidation loan might offer you a lower consolidated interest rate as compared to what you are already paying. This means that you pay less interest which helps you pay off your debt relatively faster
  • Longer Pay Duration: Debt consolidation loans also tend to be spread over longer periods thereby making your monthly payments smaller. This gives you the opportunity to actually make these payments instead of accruing more debt because you don’t have enough cash to pay the monthly payments

Disadvantages of Debt Consolidation Loans

  • Higher Fees: While debt consolidation loans can help you with lower interest rates, you have to carefully account for the fees associated with debt consolidation loans. So ensuring that you do enough research about the fees charged by different providers can come in handy to ensure that the lower interest rate and the fees associated with the debt consolidation loans actually net out in positive for you. Otherwise, while you might be getting a lower interest rate that could be negated by the fees charged. One common example of debt consolidation without the help of a company is credit card balance transfer. So while you might benefit from a introductory ARR (lot of credit cards will offer you a no-interest plan for 6 months) it might be worthwhile checking if the new credit card itself has an annual fee attached to it
  • Risk of accumulating more debt: This one makes debt consolidation loans a double edged sword. When you opt for say a new credit card for balance transfer, you might end up racking up more debt on the new credit card if you are easily tempted. So if you are addicted to debt, it may not be worth it to opt for a debt consolidation loan and instead opt for a peer-to-peer loan where you are not allowed to add new purchases to the loan amount.
  • Negative Impact on Credit Score:Anytime you opt for a loan, your credit score gets impacted. This holds true with debt consolidation loans as well! Another potential reason why your credit score might be negatively impacted comes from closing the old card after the balance is transferred. So, your best bet is to do thorough research and opt for a single debt consolidation loan instead of opting for multiple debt consolidation loans. On the other hand, if you do qualify for a debt consolidation loan and meet the payment schedule it might have a positive impact on your credit rating and help improve your credit score.

These are some of the key advantages and disadvantages of debt consolidation loans. You should consider all these aspects and do a proper analysis depending on your debt situation to make a prudent choice. Also, all said and done debt consolidation loans are essentially a short-term solution for debt and a long-term one. Keep that in mind when you decide to opt for a debt consolidation loan because unless you change your spending habits and practise financial discipline no amount of debt consolidation loan will help you come out of debt.

Do you have any personal experiences with debt consolidation loans? Any specific things one should keep in mind when deciding to opt for a debt consolidation loan? Let us know via comments

The post Advantages & Disadvantages of Debt Consolidation Loans appeared first on Getting Money Wise.

]]>
http://www.gettingmoneywise.com/2014/06/advantages-disadvantages-debt-consolidation-loans.html/feed/ 3
Four Things You Need to Get an Auto Loan http://www.gettingmoneywise.com/2014/06/four-things-you-need-to-get-an-auto-loan.html?utm_source=rss&utm_medium=rss&utm_campaign=four-things-you-need-to-get-an-auto-loan http://www.gettingmoneywise.com/2014/06/four-things-you-need-to-get-an-auto-loan.html#comments Tue, 24 Jun 2014 18:25:44 +0000 http://www.gettingmoneywise.com/?p=13300 Most people apply for an auto loan at least once in their life. Even if you prefer paying cash for the majority of your purchases, chances are that you don’t have enough stashed away to buy your car free and clear, and even if you do, you might not want to drop a lump sum ...

The post Four Things You Need to Get an Auto Loan appeared first on Getting Money Wise.

]]>
Most people apply for an auto loan at least once in their life. Even if you prefer paying cash for the majority of your purchases, chances are that you don’t have enough stashed away to buy your car free and clear, and even if you do, you might not want to drop a lump sum all at once.

thing need auto loan 300x215 Four Things You Need to Get an Auto Loan

Getting an auto loan can put you a step closer to the car you want. Although the process is fairly routine, preparation can ensure the quickest and simplest process.

1. Get pre-approved for an auto loan

There is no rule that says you have to get pre-approved when shopping for a car. However, getting pre-approved has many benefits. You’ll learn in advance whether you can qualify for a vehicle loan, as well as how much you can afford to spend on a car.

Getting pre-approved may seem unnecessary. But the last thing you want to do is fall in love with a car that you cannot afford. This process is completely different from a pre-qualification. With a pre-approval, the lender will pull your credit report and review your income to determine how much you can receive from the bank. It removes any guesswork, allowing you to only consider cars within a certain price point.

And while you’re getting pre-approved, it’s also a good idea to compare auto loans between two or three banks. Auto loan rates vary by lending institution and comparison shopping is the best way to ensure the lowest rate possible.

2. Work with the right lender

When buying a car, it’s also important to work with the right type of lender. If you find the perfect car at a dealership, you can secure a loan through your personal bank, or you can work with the dealership’s financing department.

Some people choose to work with the dealership’s financing team. Understand however, the dealership doesn’t write loans. They have partnerships with a multitude of banks and they connect buyers with the most appropriate lenders.

“The dealership writes the loan, but effectively, we’re the bank,” says Consumer Portfolio Services founder and chief executive Charles E. Bradley.

Therefore, having bad credit won’t necessarily prevent a vehicle loan. In this case, it’s all about finding a lender who works with your particular credit situation.

3. Do your market research

Whether you’re buying from a dealership or a private party, market research is crucial to getting the best price for your car. This will involve a little homework on your part. However, if you can negotiate the best price for the car, it’ll reduce how much you need to finance, thus lowering your monthly payments.

The dealership’s goal is to get as much as possible for the vehicle; but in most cases, you can drive away with a new car and pay less than the sticker price. The first thing you need to do is compare car prices among different dealerships, and then ask dealerships to beat your best price. You can also compare average transaction prices for your area online so that you know what others have paid for the same car.

If you’re buying from a private party, using Kelley Blue Book to check the vehicle’s worth based on the make, model, mileage and condition can help you determine the overall value of the car.

4. Gather your salary information. 

You might have good credit, but if you don’t earn enough income, a car loan won’t happen. Be prepared to show the lender your most recent paycheck stubs, and the bank may call your employer to confirm your salary and position. Additionally, if you’re self-employed the lender may need to see two years worth of tax returns.

Getting a new car can provide reliable transportation, but you can’t always sign and drive away in a new car. If you know what you can afford beforehand, and if you work with the right lender, you can find a low, attractive financing package.

The post Four Things You Need to Get an Auto Loan appeared first on Getting Money Wise.

]]>
http://www.gettingmoneywise.com/2014/06/four-things-you-need-to-get-an-auto-loan.html/feed/ 0
5 Strategies to Help You Get Started With Binary Options Trading http://www.gettingmoneywise.com/2014/06/5-strategies-to-help-you-get-started-with-binary-options-trading.html?utm_source=rss&utm_medium=rss&utm_campaign=5-strategies-to-help-you-get-started-with-binary-options-trading http://www.gettingmoneywise.com/2014/06/5-strategies-to-help-you-get-started-with-binary-options-trading.html#comments Tue, 24 Jun 2014 16:14:30 +0000 http://www.gettingmoneywise.com/?p=13297 It should come as no surprise that binary options trading is fast emerging as a great alternative  investment channel and a genuine one at that. With real estate prices taking in 2008 and witnessing huge fluctuations ever since, people all around have been looking to find new ways to invest their personal finances. Binary options ...

The post 5 Strategies to Help You Get Started With Binary Options Trading appeared first on Getting Money Wise.

]]>
It should come as no surprise that binary options trading is fast emerging as a great alternative  investment channel and a genuine one at that. With real estate prices taking in 2008 and witnessing huge fluctuations ever since, people all around have been looking to find new ways to invest their personal finances.

binary options trading strategy 5 Strategies to Help You Get Started With Binary Options Trading

Binary options trading has been gaining steam in the recent times as more & more people are reading about the simplicity of the binary options trading and the potential return on investment. The fact that it can be done completely online has also seen a lot of work from home moms and even working professionals experiment with binary options trading in spare time. While binary options trading is definitely becoming a viable investment vehicle, there are some risks to binary options trading just like any other investment. Therefore, it always helps to learn the right strategies for binary options trading before you jump into it.

Here are 5 key binary options trading strategies that should come in handy if you want to start with binary options trading:

  • Invest In Educating Yourself First: Every investment channel operates in a certain way and there are some fundamentals one should learn before jumping in with real money. Despite the simplicity of investing with binary options, take time to study the fundamentals of how binary options work. You can teach yourself either through various blogs on the internet or purchase books that teach the basics of binary options.

 

  • Choose A Broker Very Carefully: It goes without saying that without the right broker account, you are setting yourself for a failure right from the get go. With the popularity of binary options trading, a lot of brokers have emerged and you need to do enough research to figure out the best broker for you. Some of the key aspects to look for credibility of the broker, minimum investment & withdrawal amounts and transaction charges. All these are critical to ensuring that your investments in binary options do not go for a toss. Luckily, there are enough online resources for you to compare the various brokers that offer binary options trading.

 

  • Start with Small Investments: “Rome wasn’t built in a day and neither will your investment account”. This is another common mistake that applies to most people who enter the world of investing and it applies strongly to binary options investment as well. Just because you have $5k to invest does not mean you go all in right from the get go. Treat binary options like any other new investment where the best way is to test the waters with low investment ($100-$200) and increase the investment once you start getting a hang of how binary options trading works.

 

  • Manage Your Expectations: The internet is awash with stories of people who made a fortune with binary options trading within a month or so. Take that with a grain of salt and set realistic expectations. Binary options trading is not a get rich quick scheme and like all other investments takes time and effort to get the best return. So, set your expectations right before jumping into binary options trading and then realizing that you did not get rich after trading for a day.

These are some of the key strategies to help you get started with binary options trading. You can and should continue to update your knowledge base as you start increasing your investments.

Any other strategies for binary options trading that you have used and would recommend others to use. Share it with us via comments.

 

The post 5 Strategies to Help You Get Started With Binary Options Trading appeared first on Getting Money Wise.

]]>
http://www.gettingmoneywise.com/2014/06/5-strategies-to-help-you-get-started-with-binary-options-trading.html/feed/ 0
9 Ways to Invest Your Personal Finance the Way Businessmen Do http://www.gettingmoneywise.com/2014/06/9-ways-to-invest-your-personal-finance-the-way-businessmen-do.html?utm_source=rss&utm_medium=rss&utm_campaign=9-ways-to-invest-your-personal-finance-the-way-businessmen-do http://www.gettingmoneywise.com/2014/06/9-ways-to-invest-your-personal-finance-the-way-businessmen-do.html#comments Mon, 23 Jun 2014 15:20:00 +0000 http://www.gettingmoneywise.com/?p=13291 You may try to save some money all your life, and get wishful that you’ll get rich. Unsurprisingly though, because of the financial difficulties life offers on a daily basis, you’ll eventually find that doing this continuously is not getting you anywhere. There’s only one option to take if you really have the drive to ...

The post 9 Ways to Invest Your Personal Finance the Way Businessmen Do appeared first on Getting Money Wise.

]]>
You may try to save some money all your life, and get wishful that you’ll get rich. Unsurprisingly though, because of the financial difficulties life offers on a daily basis, you’ll eventually find that doing this continuously is not getting you anywhere. There’s only one option to take if you really have the drive to save more money than usual—to invest effectively and wisely.

Smart investment saves you from financial pitfalls by allowing you to live the kind of lifestyle you have always dreamed of. You may think that you are making a smart investment, even if you aren’t. Make sure you strategize effectively throughout the process of planning your investment, especially now that many countries are suffering from a global financial crisis.

Jason Lange cites in an article in Reuters that in September 2012, business investment stalled as a fiscal cliff overshadowed the global economy. Investing wisely during these difficult times may pose some challenges. However, if you stick to your desire and goal to succeed, you’ll soon reap the benefits of your hard work without even realizing it.

invest your personal finance like businessman 300x200 9 Ways to Invest Your Personal Finance the Way Businessmen Do

Small investment is also worth it

Say, for example, you’ve saved an extra $20. Does this small amount of money make good investment? You bet, it is! Dividend Reinvestment Plans let you bypass brokers, and their commissions, by purchasing stocks directly from the companies or their agents. Investing in security now becomes easier than ever before as these plans collect low fees to make investing $20 at a time worth it. Dividend Reinvestment are ideal for small amount investments and frequent purchases in dollar-cost averaging. You can avail of Dividend’s automatic payment plan, without having the need to buy a complete share whenever you pay for your contribution.

 Invest on home renovation

Use the $1000 you’ve saved to invest in real estate by replacing doors or having a bathroom makeover in your home. You never know when doing this will come in handy, since the expectation to increase the resale value of your home may come unexpectedly. Expect potential buyers to check every nook and cranny of your home, so be sure to incorporate creativity when making investment on home renovation.

 Make good use of your talents

One of the popular investment trends that don’t cost expensive investment money is the establishment of a start-up virtual freelance business. If you have a talent and knack for writing, don’t hesitate to put up an online job order systemized website for freelance writers. Place confidence in your ability to act as the head writer for your online company. Generate income through writer’s work outputs and the virtual workforce management strategy that you employ.

Hire additional remote workers to maintain the upkeep of your job order website for you. Use the additional money that you’ve saved to pay for the salary of your additional workers. Don’t be afraid to make extra investment if it will cause your business to grow even further in the long run.

 Avoid high interest rate loans

One of the tackiest ways to spend your money is by spending it by paying off your debt. For instance, if you have saved $1000, instead of spending the money partying every night, pay off a sizable portion of your home or car loan. Subsequently, you avoid accruing high interest rate loan payments in the long run.

 Start a land-lording business

Because condominiums are soaring high investments, don’t be afraid to take the risk in investing in one. Initiate a land-lording business once you purchase a condo for property investment. You’ll enjoy the immense returns your investment makes whenever you collect your monthly rental income from your tenants.

If you’re lucky enough in having a renter who rents your place for a couple of years, the rate of your property investment return will likely surpass that of the rate you have initially predicted. If this happens, living like a king is not impossible, as your rental income alone will be sufficient to support your daily needs.

 Prioritize your safety

Investing in home security systems, such as alarm systems, has now become affordable in recent years. The commonality of various technological advancements has reduced the price of home security systems. Prioritize your safety before anything else when making a decision to invest. Your safety and welfare are priceless, so you should make sure to make a wise investment in preserving them.

 Watch your money grow in your bank

Make a wise investment in banks that offer good interest rate returns for time deposit accounts. Entrust your money to a reputable bank. Grow the rate of your money’s return in time deposit after sitting in the bank for a few years.

 Invest in popular franchises

Ensure family safety investment by investing your business only with franchise companies with solid, industrial backgrounds. For instance, if you wish to invest in a retail store, investing in a franchise of Walmart makes a better bet than a low-profile antique store. You can feel more confident that your business has considerable opportunities to last by investing in solid franchises.

 Make sure you’re insured

Don’t neglect your health. It’s expensive to get sick, especially when you’re on a tight budget. Invest in health coverage with a reputable insurance company. You just never know when your health coverage will come in handy. Get the most out of the amount you’ve invested when you enjoy the benefit returns that the coverage gives you.

Because you only get one life to live, guaranteeing your personal and family security is more than a great investment. When making a decision to make an investment, see to it that such investment, regardless of its nature, will assure the security of your whole family. A security blanket in the future to safeguard your family’s financial needs gives you a peace of mind that something can provide back-up support for you during emergencies. Subsequently, you are relieved from being dependent from others to give you the help you need when you need it. You’ll know you can be independent, even in times of emergencies, whenever you make great investments.

What other ways do you think you can invest your personal finance like businessman do? Let us know via comments

Jona Miranda Jone is a passionate writer. She writes about business, investment and other valuable issues. She runs the blog BreezyHub.com. Follow Jona on Twitter.

Photo courtesy of Tax Credits via Flickr

The post 9 Ways to Invest Your Personal Finance the Way Businessmen Do appeared first on Getting Money Wise.

]]>
http://www.gettingmoneywise.com/2014/06/9-ways-to-invest-your-personal-finance-the-way-businessmen-do.html/feed/ 1
4 Steps to Stop Losing Sleep Over Credit http://www.gettingmoneywise.com/2014/06/4-steps-to-stop-losing-sleep-over-credit.html?utm_source=rss&utm_medium=rss&utm_campaign=4-steps-to-stop-losing-sleep-over-credit http://www.gettingmoneywise.com/2014/06/4-steps-to-stop-losing-sleep-over-credit.html#comments Fri, 20 Jun 2014 14:00:58 +0000 http://www.gettingmoneywise.com/?p=13277 Credit is practically a necessity if you’re buying a house or car. But although getting a credit card and applying for loans can open the door to a great credit history — your history is only as good as the way you manage your credit. And unfortunately, if you’re not the best credit manager, your ...

The post 4 Steps to Stop Losing Sleep Over Credit appeared first on Getting Money Wise.

]]>
Credit is practically a necessity if you’re buying a house or car. But although getting a credit card and applying for loans can open the door to a great credit history — your history is only as good as the way you manage your credit. And unfortunately, if you’re not the best credit manager, your credit score will suffer.

lose sleep over low credit 4 Steps to Stop Losing Sleep Over Credit

lose sleep over credit

There is a price to bad credit. Not only is there the risk of dealing with harassing creditors on a daily basis, a low credit score can increase your insurance premiums, make it harder to work in certain fields and result in higher interest rates. It’s certainly cheaper to have an excellent rating; but getting to this point is much easier to say than do. And depending on how badly you’ve damaged your credit, you might lose a few nights of sleep.

However, with so many ways to improve your score and get on the right path, there’s no reason to lose sleep. Here’s what you can do:

1. Communicate with Creditors

You may prefer to run and hide from your creditors, but during hard times, they can become your best ally, offering provisions that will keep your credit score intact. If you don’t have money, ignoring your credit card bills and dodging creditors might be your first instinct. But if you pull a disappearing act and stop paying, creditors will report this negative activity to the bureaus.

On the other hand, if you communicate with creditors, the company might modify your terms or lower your payment, which can keep your account in good standing.

2. Get Creative with Debt Repayment

Even if you increase minimum payments, it might take years to get rid of your credit card debt. For fast relief, you need to get creative and think outside the box. There are several ways to drum up cash to pay off your credit cards faster.

For example, if you have an extra room in your house, you might get a roommate or rent out the space, and put this cash toward debt repayment. Some people have gone as far as getting rid of their car and relying on public transportation or walking everywhere, whereas others stopped shopping for one or two years to increase their disposable income.

3. Negotiate a Better Rate

It’s hard to pay off debt when you’re paying an interest rate in the 20% range. If you have an okay credit score, you might be able to negotiate a lower interest rate. Call your credit card company and ask to speak with someone who has authorization to reduce interest rates. State that you’ve been a loyal customer with the company, and mention that you maintain a good payment record — only if it’s true.

With a good payment record, there’s a chance that the credit card company will approve your request. And once you’re paying a lower interest rate, more of your monthly payments will go toward reducing your principal balance.

4. Start Over and Make Better Choices

You might hate the idea of filing bankruptcy. But instead of running from this idea, assess the possible benefits. Filing a Chapter 7 or Chapter 13 bankruptcy gives you the chance to start over and rebuild your credit.

“Bankruptcy is a process created to give consumers the opportunity to repay or eliminate debts,” says DoanLaw.com.

Although a bankruptcy stays on your credit report for up to 10 years, it only takes about two or three years to repair the damage of filing. Therefore, you might be able to buy a house or car within 36 months of your discharge, and qualify for a competitive interest rate. However, to benefit the most from bankruptcy, you’ll need to make smarter choices in the future. For example, use cash and only pull out a credit card if you pay balances in full each month; always pay your bills on time; and exercise self-control to avoid overspending.

Getting a handle on your credit and debt takes time and patience, but you can achieve an A+ score. And with this score, you’re in a better position to get lower interest rates and easy approvals.

 

The post 4 Steps to Stop Losing Sleep Over Credit appeared first on Getting Money Wise.

]]>
http://www.gettingmoneywise.com/2014/06/4-steps-to-stop-losing-sleep-over-credit.html/feed/ 0
Work, My Significant Other, and What I Did to Keep Our Finances in Check http://www.gettingmoneywise.com/2014/06/work-my-significant-other-and-what-i-did-to-keep-our-finances-in-check.html?utm_source=rss&utm_medium=rss&utm_campaign=work-my-significant-other-and-what-i-did-to-keep-our-finances-in-check http://www.gettingmoneywise.com/2014/06/work-my-significant-other-and-what-i-did-to-keep-our-finances-in-check.html#comments Fri, 20 Jun 2014 13:55:03 +0000 http://www.gettingmoneywise.com/?p=13273 When my girlfriend and I first started dating, our spending habits were absolutely atrocious because we were still young (19 and 23). We didn’t have many responsibilities outside of working (me) and going to college classes (her) so, much of our income was expendable. Then we made the leap and got an apartment together and ...

The post Work, My Significant Other, and What I Did to Keep Our Finances in Check appeared first on Getting Money Wise.

]]>
When my girlfriend and I first started dating, our spending habits were absolutely atrocious because we were still young (19 and 23). We didn’t have many responsibilities outside of working (me) and going to college classes (her) so, much of our income was expendable.

Then we made the leap and got an apartment together and boy, did things start to get real. It was a hard realization that we couldn’t do things like before and take a few days off to go to the beach, spend all weekend clubbing, head out to a music festival in the next state, or buy stacks of video games and hobby supplies.

finances in check 300x278 Work, My Significant Other, and What I Did to Keep Our Finances in Check

Things had to get under control but I’m sure you know where this is going. Bringing up finances to your significant other, at this early stage, is sort of a flip of a coin in how they’ll react. Luckily she was on board and so we set off to make things straight.

Here are some of the things we did, as a couple, to make sure that our finances were in check.

  • Gaming/Hobbies/Media. We decided to opt-out of a full cable package, because we never really watched TV so, instead, we upped our Internet service to higher speeds. This allowed me to do my work easier (it’s all online) and it also meant that we shifted more of our activities toward computers. This meant a lot of our games, hobbies, and other media became dirt cheap thanks to online game sales, tech-related hobbies: like building websites, and streaming shows/movies with Netflix
  • Banking & Bills. Going against some conventions we got a bank account together which would go toward paying the common bills like rent, electric, cable, and others (though we still kept our personal accounts). This made things easier as we kept it 50/50. One of the ideas that really made things easy was switching it up and trying out online bill paying services. The service we used could easily look at what was coming up, make sure we had enough, and pay on the spot rather than letting things get too close (stressful!) or accidentally going past the date and getting a late fee.
  • The Two Week Rule. Perhaps the best thing we did, as a couple, was decide on a “two week rule” for shopping. Basically it means that you (or your SO) finds something they really want but the other takes the time to ask questions as to why they want it and encourage them to wait out two weeks and come back to it later. It works great because once you sit on the idea for two weeks you usually don’t care much for the item anymore because it’s past that point of excitement – you’ll effectively overcome the advertising and marketing.
  • Got Serious about Health. Unexpected health expenses can be the downfall of your financial planning and savings. When you’re not with someone you aren’t going to say “well, that’s your issue” because you two are a team. The best way to avoid a lot of health bills is to be healthy. We started walking every day. We changed our diets. We started seeking activities that would get us going rather than passive entertainment like movies or video games. Being healthier has definitely helped with being able to stay out of the hospital and doctor’s office.
  • Set Bigger Goals. Being young it’s easy to get into the mindset and lifestyle of “living in the moment” which, in theory, sounds wonderful but can do some bad things to your finances. So we set bigger goals such as traveling (we recently went to Germany for two months). We also have a house in our plans. By having these BIG goals we can help each other avoid superfluous spending on stuff we really don’t need. All it takes is a “do you want that or the big goal?” and that usually takes care of it.

Talking to your significant other about finances can be a little scary in the beginning especially when you’re still just getting to know the person but if you see yourself having a future with this person it’s best to just get it out of the way sooner rather than later.

These were just a few of the things we did to get everything under control. What sort of actions have you taken for yours?

 

The post Work, My Significant Other, and What I Did to Keep Our Finances in Check appeared first on Getting Money Wise.

]]>
http://www.gettingmoneywise.com/2014/06/work-my-significant-other-and-what-i-did-to-keep-our-finances-in-check.html/feed/ 2