Give Your Moolah a Make-Over While You’re Still Young
If you aspire to live a life like a Hollywood A-lister – designer clothes, fancy car and a plush downtown pad – best you shape-up your spending and saving habits while you’re still footloose and fancy free. Avoiding the debt trap early is one of the smartest moves you can make. But with the temptation of store cards that offer buy now, pay later deals, spiraling out of control into the red is easier than you think.
One of the most common mistakes young people can make is falling into a debt trap and not starting a savings plan in their 20s. Learning how money works for – or against you – is vitally important if you want to succeed. Knowing the facts will put you on the right path to a healthy financial future and assist you in setting up a secure bank savings account. Everyone, young or old, should be prudent with their finances and trim any excess spending.
So, where to start?
Be informed and choose the best bank account to suit your needs
Knowledge is power. And, although it sounds a little drab, reading up on the brochures from different banks to learn about transaction and saving accounts will do wonders for your financial IQ. A transaction account is recommended for your salary deposit, for paying bills and for day-to-day spending, while a fixed-term bank savings account is a good option if you have a specific savings goal in mind and want to earn more on your savings. Fixed-term savings accounts offer higher interest rates compared to general, flexible saving accounts. They are ideal for people who have a habit of blowing all their cash before they can squirrel it away in a savings plan as you can’t touch the money until the end of the fixed period – between 6 and 60 months.
Another tip is to look at the rates of various account options before making any banking commitments to make sure you don’t spend most of your salary on bank fees. Do the sums and add up ATM withdrawals, cash deposits, internet banking and debit order fees. Then weigh up where you’ll find the lowest rates.
Take control of your income and job perks
You may have jumped for joy when your new employer told you your “gross” salary figure at the final interview. After the obligatory tax deductions, your net income is what you have left until the next paycheck. So, like the fashion-forward trend-setter you are, be savvy and ask your employer whether he contributes towards pension, life insurance or gym memberships. Then find out how this can affect your net income – you might be pleasantly surprised at the outcome.
Draw up a budget and stick to it
Knowing what you spend your money on is key to financial independence. Interest-free loans don’t actually exist unless mom and dad are keen to help. Tally your income against your expenses and take a long hard look to see if you really can afford to live like a celebrity. If you only have a few Rand to your name after must-pay expenses like rent, medical aid and petrol have been paid, consider cutting back on gourmet meals by making a packed lunch instead, or socialising with your friends on a hike instead of a pricey Sunday lunch.
Keep a slush fund for emergencies
Financial gurus always recommend saving 10% of your net income. So, if your net salary is R5 000 per month, you should save at least R500 a month to build up a kitty for emergencies like a car service, dentist visit or broken geyser. Even if you can’t afford 10%, just by setting up a small debit order of a R100 a month into your bank savings account, you’ll insure yourself against an unexpected financial mess.
Count your cash
Keep track of what you spend to avoid being broke by mid-month. Hang on to all till slips and add up how much you spend through the month – you’ll be surprised how quickly your money vanishes if you’re not in control. SMS updates are a great way to stay in control of what’s happening in your account at all times. Most banks offer SMS updates to clients at and you can choose whether you only receive alerts for money coming in or going out of your account or for all transactions.
Preparing for Real Estate Investment in Tampa
Tampa Bay offers a great opportunity for investors, especially homebuyers. The favorable buyers market conditions, added to the competitive prices, make the real estate investment a windfall in this season for prospective buyers.
Short-term or Long-term investment?
Both short-term and long-term investments have their own advantages and disadvantages. It depends on the investment plan one wishes to opt for and the kind of benefits he expects in the prescribed period. Be aware of the market trends and follow these guidelines before investing in them.
Short-term investment properties in Tampa Bay are hard to find. There is a tough competition in grabbing them. And no doubt, one can be assured of a great benefit by procuring such a property and selling them in a minimum period of six months if a property is bought right. It is, therefore, very essential that you procure the right property, the one that has a great potential for appreciation. Don’t be attracted to the cheapest property of a particular place. Rather you may analyze the market trends of the particular place and verify the future demands of the properties there.
If you are planning for a long-term investment in Tampa Bay, be on the look out for properties that are cheaper now but will have a great growth prospects in the future. Keep an option of renting the property if you are not intended to stay in it. Thus the property will bring double benefits, in the form or a regular income and also a future investment.
How to secure the best mortgage benefits?
If you plan to invest in Tampa Bay, follow the simple steps mentioned below, in order to get the best deal, from the mortgage companies/banks.
o Maintain a steady saving record
The preparation for the home investment should be started at least two years before the buy. This means that you should keep an eye on your saving accounts, checking accounts and other form of savings such as mutual funds, well in advance. Try to make maximum deposits in the savings accounts, and reduce the withdrawals. Make sure that there is enough balance in your account, before issuing checks. Bounced checks will bring a bad mark on your credit history.
o Think before you opt for a change of job
There are various reasons why one should avoid switching the jobs while on the look out for a mortgage. Most of the mortgage lenders will sense an uncertainty about your earning potential, which in turn will affect the lending process. A shift in your job may be accepted provided you have opted for a better company that offers a better pay package. On the other hand, for people who were working on contract basis and whose majority of the income came from commission or bonuses, a change of job will invite more risks in terms of getting a mortgage sanctioned.
o Avoid major purchases
It is natural to assume that anyone who has been already committed to paying a loan will find it difficult to afford a mortgage under normal circumstances. It will have a strong negative impact while calculating the debt-to-income ratio, the main component in deciding the eligibility of the mortgage.
A real estate investment can be promising only if you analyze the various issues associated with it and manage them wisely.
What is a Money Market Deposit Account?
A money market deposit account is mainly opened with the aim of investing your savings in the money market world. These accounts are also called as deposit accounts which are almost similar to savings accounts. But unlike a savings account, these accounts have certain restrictions with regard to writing of checks are concerned. Just as other saving accounts are insured, money market deposit account is also insured. These accounts are usually managed by the bank or you also have the brokers handling it too. This account is an easy way to deposit money which is used for upcoming investments.
These accounts are totally safe though the interest rate is also low. You can find similarities in a money market deposit account when you compare it with a saving account. Yet I must say that both of them still differ with respect to certain features. Only few withdrawal transactions are allowed per month, when it comes to dealing with third parties. Banks try to discourage customers from going beyond their limit while their withdrawal transaction is concerned. If banks find the account holder to exceed the number of withdrawal transaction, then in such a case, the bank might impose high fees. Also it may go to the extent of closing their accounts. Actually, banks are using this above mentioned system in order to limit the customers transactions. This may not include ATM transactions. All this technique helps the bank to invest the money in a more appropriate way and thus open doors for higher return.
Money markets can easily be compared to a mutual fund, whereby the share price is kept constant. The manager’s who manage their funds in these accounts, will invest them in financial product, such as saving bonds, Certificates of deposit etc. The money earned is then paid out to the money market account holders. In a money market deposit account, cash can be easily made available for other investment plans. The rate of interest in this case depends on how much assets have been deposited by the investor. It does not depend on the maturity date, unlike in h the case of Bank certificate of deposit. So the rich investors may enjoy the benefits, depending upon their investment plan.
The main feature of this account is that, it has restrictions as far as writing a check is concerned. In the case of money market deposit account, you can save money and at the same time you can have access to your funds.
Payday Loans For Savings Accounts – No Faxing Required
Strapped for cash, with no one to borrow from? You needn’t be embarrassed; ask for payday loans for savings accounts. Many people need emergency cash not because they cannot manage their funds but often unforeseen events arise when payday is still weeks away. Things such as cars break down at unusual times, urgent travel comes up, and kids have a hundred needs are not to be delayed. Payday loans for savings accounts are the answer to all your worries.
Almost Everyone is Eligible
payday loans are cash advances with the loan period between two and four weeks. Cash through payday loans can be deposited into your savings account within hours once you are approved. The requirements are simple. Generally, payday loan lenders require you to have a minimum salary of $1000 per month regularly for the past three months. You should be over 18 years of age, and you should be a United States citizen. If you fulfill the above criteria, they are least bothered about why you need the money and what your credit history is.
Applying for Pay Day Loans for Saving Accounts
Do you have access to the Internet? Then you are just a few clicks away from getting cash! You simply need to fill out simple and easy forms. You will need to provide the lender with some personal information. You can read their privacy policy, which safeguards your personal information with them. They do not share it. It is secure and confidential. Once the information is sent across to the lender, they will do verification and approve your loan via an e-mail confirmation in a matter of a few minutes.
As everything is processed electronically, no faxing is required at all. No paperwork will need to be faxed that makes the whole process a lot easier. Some lenders may use teletrack to cross check your credit history, others may simply ring you or your employer to ensure that your details are correct. The loaned amount can vary from $100 to $1000. It can be more for customers who have a long association with a particular lender. The cash is usually wired to your savings account overnight.
The annual percentage rate is mentioned clearly on the lender’s website, as per state directive. In regards to the repayment, some lenders may give you several repayment options; you can pay them by cash or postdated check, which will go for clearance on the next payday. Another option is to give them authorization to take the payment from your bank account on the due date automatically. You also have an option to ask them for a rollover to the next payday, on payment of a fee.
5 Methods of Saving Money in the Information Age
Saving is in essence putting aside money or a way to exploit your present income for future use and needs.
We can save for numerous reasons such as for your education, buying a new automobile, for a new electronics appliance, for down payment on a property or to provide for yourself when the inevitable retirement comes.