Simple Tips On Getting Your LoanWritten by T. O' Donnell
So, you want to get a loan? Here are some simple tips that will help you make an informed decision about what kind to get, and who to get it from. First ask yourself: do you really need it? Can you manage without it? Is it for something frivolous, like a holiday? Could you get money by other means: part-time job, from a relative, sale an asset? Don't put a monkey on your back if you can avoid it. A loan varies according to: The amount borrowed; The interest rate; The type of rate (fixed or variable); The term (repayment time in months or years); Deposit (downpayment); Associated fees (broker, origination, prepayment etc.); Insurance required by lender. You are buying money for more than it cost lender. Simple. It's a mistake to only care about interest rate; there are also arrangement fees and prepayment penalties to consider. Many 'no fee' credit lines have a pre-payment penalty. This is how brokers and lenders make their money. Work out total cost of your loan before committing. To ensure you get best terms, keep your credit-line as small as possible. Loan officers tend to count total line of credit available as a liability. Pay off small debts before due date. Cancel credit cards you are not using. Consider their interest rates and fees, when deciding which cards to keep.
| | Investor Guide to Financial HealthWritten by Jonathan Citrin
Step 1: Spend less than you earn Perhaps simplest financial concept is toughest for us to conquer- spend less than you earn. After paying your living expenses (bills, loan and mortgage payments, cost of food, charitable contributions, taxes, etc), you can begin to save and invest toward your future. If you are spending more than you earn, you must find a way to change this. You may even need to change your lifestyle- drive a more efficient car, eat out less, live in a smaller home, cancel your cell phone, etc. Make a commitment to your financial success to spend less than you earn. This may take a lot of discipline, but is an essential first step towards your financial wellbeing. Once you spend less than you earn, you will be on your way to reaching all of your goals.Step 2: Prepare for an emergency Before doing any actual investing, you need to establish an Emergency Fund (cash held in an account for emergencies). This fund can be used for various emergencies, but, its main purpose is to pay your living expenses in event of a sudden loss of income. That is, if you lose your job, you will still be able to pay your bills without having to abruptly withdraw money from your investment accounts. A relatively conservative amount to keep in your Emergency Fund is that equal to 6 months of living expenses. Step 3: Determine your goals Would you take a road trip without an ultimate destination? How long will trip take? What should you pack? In what direction would you drive? These questions are easily answered once you know where you are going. The same is true for investing. Before any investments are actually purchased, you must know your ultimate destination- you must create a list of your goals. Determining your goals and writing them down will serve as foundation for a proper investment plan, allowing you to customize your investments to each specific goal. Some examples of “goals” are: retirement, college, buying a house, taking a vacation, and buying a car. In writing down your goals there are a few pieces of information you must identify. You must know following about each goal: name (NAME), time until realization (TIME), cost in today’s prices (COST), planned contributions (PAYMENT), and current money saved for this goal (PV). Below is an example of a goals list: NAME - TIME - COST - PAYMENT - PV - RATE Retirement - 30 years - $2,500,000 - $1,000 monthly - $350,000 - ??? College for Kid 1 - 12 years - $100,000 - $500 monthly - $20,000 - ??? College for Kid 2 - 10 years - $100,000 - $500 monthly - $22,000 - ??? Buying a Boat - 6 years - $30,000 - $150 monthly - $0 - ??? Step 4: Invest After determining your goals, you can begin to invest toward achieving them. Doing so means calculating annual rate of return (RATE) needed to achieve each individual goal. For example, you may need a 7% rate of return to achieve your retirement goal, while only a 5% rate of return to attain your college goals. Thus, your actual investments may be significantly different for each goal, but will be tailored to each individually. (There are online resources and calculators that offer assistance computing your required rates of return.)
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