Financial Readiness: Preparing for BRAC(Base Realignment And Closing)Written by Leslie Linfield
The recommendations for military base closings have been released and news is not good. If recommendations are accepted, you will lose your job. So what do you do? Hope for best, and prepare for worst. There is a benefit to this situation. Unlike many individuals who suffer loss of employment, you have advance warning. This is an opportunity to prepare yourself and your family. Use this time to create a financial plan. The importance of a budget can not be stressed enough. A budget is a tool that helps you track your income and expenses, giving you a snapshot of your overall financial picture. Know where your money goes. Identify areas where you can cut back. Knowing your financial obligations will be critical while planning for loss of income. The next piece of planning puzzle is net worth. Your net worth is what you would have leftover if you sold all of your assets (what you own) and used them to pay off your liabilities (what you owe). This will require sitting down and making a list of those assets and liabilities. This may sound like an overwhelming project, but it is important that you know exactly where you are financially. Knowing your net worth is essential for planning for an emergency such as unemployment.
| | Take The Mystery Out Of Finances And Simplify Your LifeWritten by Kathleen Sutera
What is finance and what do you need to know? Finance can mean different things. It may refer to your personal financial situation. It could refer to your investments or a business's investments. It could refer to a credit or loan purchase.Financing can be involved in your life in different ways. For example, if you are going to invest in a large purchase such as a house or even a car. Large furniture purchases and credit cards all fall into these categories. Interest rates are most integral part of financing. Why else would a company want to loan you money or offer you credit? How else would they benefit? They benefit from interest that you have to pay in on financing your loan. There are different types of financing options available. The percentage rate is amount of interest that you pay. The percentage rate is certain portion of your loan or credit that you pay back in interest. For example, if your loan was for $40,000 and your interest rate was 12.3% then you would pay 12.3% of $40,000 in interest. The interest would be added onto your $40,000 and you would pay it back via your monthly payments. Fixed rate: A fixed rate means your interest rate will stay same no matter what. People usually prefer these. If you can get a low fixed rate, it will stay with you even if other average interest rates are going up. Balloon rate: A balloon rate can fluctuate with times and stock market but depending on situation, this can be beneficial to you as well. You will have to decide which you think is best for you.
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