Top Saving Plan

A little planning now can help you handle a natural disaster or other emergency.

Many Americans have focused on their need to be prepared in case of an emergency. Very few, however, consider financial preparedness in their plans. From keeping an evacuation box with important documents to setting up an account with emergency funds, preparing now can be the difference between financial security and financial crisis.

These simple tips from financial experts at Union Bank of California can help anyone prepare financially for a natural disaster:

• Conduct a Household Inventory

Create a household inventory for items of significant value and locate originals of important financial and family documents. Store original documents in waterproof bags in a safe deposit box or durable “evacuation box” and photocopies in a safe place. Use a CD to back up key documents on your computer. If practical, store copies with friends or relatives who live outside the area.

• Know Your Insurance Policies

Understand what types of losses your renters or homeowners insurance covers. Ask your insurance agent or financial planner about additional coverage for floods, earthquakes, home offices and big-ticket items. Keep copies of your policies in a safe place along with your other important papers.

• Keep Cash Accessible

Keep at least $300 in cash at home in a place where you can get to it quickly in case of a sudden evacuation. The money should be in small denominations for easier use.

• Create and Maintain a List of Emergency Contacts

Keep a list of important emergency contacts, including direct family members, doctors, medical facilities, numbers for your bank, insurance agent and company, lawyer and financial planner/advisor. Credit card 1-800 numbers can help you quickly retrieve account information.

• Keep an Emergency Savings Account

This account should be separate from any other account and contain enough money to cover at least three to six months of living expenses.

“We’ve learned from the aftermath of recent natural disasters that financial preparedness is not always top of mind,” said Union Bank’s Executive Vice President Ronald Kendrick. “Follow these guidelines to ensure you and your family are protected financially.”

Americans tend to have an optimistic view of retirement-but a recent poll found many people still have a lot of work ahead of them before they can leave their jobs.

For instance, 47 percent of respondents said their retirement savings will last them 10 to 20 years. Those numbers seem promising until you consider that people should be actually planning for 30 years. Similarly, nearly half of all Generation X respondents said they expect to rely on pensions to help fund retirement. The plan may seem sound, but experts warn that many pension plans in the U.S. are at risk of going belly up. Plus, fewer than a third of all companies now offer pension plans.

The poll was sponsored by the American Institute of Certified Public Accountants (AICPA) in an effort to better understand the American public’s approach to savings and retirement. The group sponsors a Web site called 360 Degrees of Financial Literacy (www.360financialliteracy.org) to help people come to terms with financial issues at different life stages. Here’s a look at some additional polling results:

Paying For Retirement

Younger Americans do not plan to rely as heavily on Social Security for retirement as do older Americans. Close to six in 10 people age 55 and older plan to fund their retirement through Social Security. Only four in 10 (41 percent) of Americans under the age of 55 are counting on Social Security to fund their retirement. Instead of relying on Social Security, those under 55 are more likely to rely on their personal savings and investments.

College Costs

About three in 10 Americans have a child who is planning on going to college in the next five to 10 years. One quarter of these parents plan to pay for their child’s education with personal savings, another quarter intend for their child to earn scholarships to pay for tuition. Surprisingly, only 13 percent of respondents plan to use private student loans and just 12 percent plan to fund their child’s education with financial aid.

Financial Concerns

Rising energy and home-heating costs and uninsured medical expenses rank as the highest financial concerns for Americans (15 percent each). Retirement and the price of gas (13 percent each) follow closely behind. Education costs are also a concern as 9 percent of respondents worried about their child’s college education and 7 percent worried about their own college education.

Forty-one percent of Americans under age 55 say they plan to rely heavily on Social Security for retirement.

Do you find that keeping control of your finances is becoming increasingly difficult?

In todays society, advertisements bombard us with offers which encourage us to Spend! Spend! Spend! With promises such as-

Easy Credit!

Pre-approved loans!
3 years interest-free credit!
Free gift when you apply!

To most people this can all seem rather tempting, given the current live for today attitude. But too much can be spent on luxuries, leaving not enough to pay the bills.

Certain kinds of debt may be appropriate, such as a mortgage or a car. Many people, however, try to buy more than they can afford. Indeed, banks and businesses encourage us to do so.

Credit cards can be too easy to obtain yet too difficult to maintain, especially when people find themselves borrowing from one card to pay off another.

Credit may even be advertised as free but we still have to pay in the end.
Many families can loose up to 1,000 a year in instalment debts, resulting in a drop in their future standard of living. Families often live from payday to payday with little or no savings for emergencies.

In America personal bankruptcies have doubled in the last 10 years. Most of these people had jobs yet unexpected bills or reductions in pay caused their bankruptcy.

Many economists agree that a global recession is on its way.
British people have over 130 billion of personal debt. It is estimated that, on average, there is 3,000 of debt from credit cards, loans and overdrafts for every adult in the country and thats excluding mortgages.

The amount borrowed from credit cards has more than doubled in the past 4 years.

Debt is fine, if you can afford the repayments. But what if you lost your job?

The time to get out of debt is now!

One major benefit of getting out of debt is avoiding interest payments. For instance; if you owe 1,000 on a credit card with an interest rate of 18.9% per year, and you only pay the minimum, say 3% per month, it will take over 13 years to pay it off plus a HUGE 848 in interest.

But if you double your payments to 6% per month, the debt will be gone in less than 5 years and the interest paid will be 292.

Savings can be gained by switching mortgages and if you fix your interest rate for 2 or 3 years then you can rest easy knowing what your repayments will be for the next few years. But make sure your mortgage is flexible so that you can pay off more if you do have some spare money.

Bank loans or hire purchase agreements can be trickier to pay off, as there may be penalties for early repayment. Just stick to the repayments and make sure that you dont get tempted into any more debt. Remember that covetousness (i.e. desiring what we see) = debt! This is because we often get into debt over what we want, not what we need.

There are warning signs to indicate whether you are heading for financial difficulties. Look at the following list of 10 signals. If any one applies to you then its time to take a closer look at your budget. If more than one applies then you could already be in financial difficulty.

Using a credit card for purchases that you normally pay for with cash.

Taking out loans to pay off debts.

Paying only minimum amounts due on credit cards.

Receiving overdue notices.

Using savings to pay bills.

Cashing-in or borrowing from, life insurance policies.

Working overtime to make ends meet.

Using your overdraught to pay bills

Juggling debts and only paying the most demanding.

Obtaining credit card cash advances for day-to-day living expenses.

If youre seriously worried about your overspending, The Citizens Advice Bureau offers free debt information.

Once your debt is under control, you need to think about saving. A standing order straight into your savings account is a good idea as the money goes straight out of your current account every month along with the bills.

Always remember never to get into debt over things that have no long-term impact on your life. For instance, do you really need an upgrade on your computer? Is a new DVD player really such a necessity? And what about a second car? Is it really essential or just an expensive convenience?

Dont forget to also take a close look at the small things in life. For example, do you really need to go and have a cappuccino every time you pass a coffee shop? And packing a sandwich for work instead of buying one can save you about 40 a month.

But by far the most important thing to do when it comes to personal finance is to keep a constant check on your outgoings. Dont wait for your bank statement to scare you next time it comes through your door. Remember the old saying that an ounce of prevention is worth a pound of cure.

Perhaps you can relate to this scenario: The moment you thought you were back in the financial game of life, something else came along that smacked you back down into the land of money woes again. Was that an accurate scenario? For many people it is. Perhaps a tragic emergency or a once-in-a-lifetime opportunity came by and you had to pay more money than you expected to pay.

Whatever the situation, you were just clawing your way back to having control of your expenses when you pushed back down. Of course, the end result is debt!

How do you deal with that mounting debt? What can you do to solve it? There are many solutions and one of them is loans. We are going to show you the different kind of loan options you have to help you make the decision wisely.

A Secured UK secured loan is one option that many people just might want to choose because it gives them a variety of potential loan amounts and interest rates. If thats you, the choice is yours! You can choose the loan amount that is right for your situation. And, the rate of interest on the principle is usually determined by several things. For example, the prevailing interest rates, the risk the lender faces from the recipient, the amount of money you want to borrow, and the repayment period. Also, a Secured UK secured loan comes with several flexible repayment terms, including the repayment frequency and the loan period (which is the amount of time you expect to pay the loan back). That way, you can manage the loan over a period of time and suit it to your income.

Be sure to shop around. If you look around at the many options available, youll probably find a Secured UK secured loan that provides you with a good amount to borrow, competitive rates, an attractive repayment period, and a repayment frequency that meets your needs. Consider this example:

If you have a large amount of utility bill outstanding debts (such as credit cards, loans, or bills owing), a Secured UK secured loan might be a good option in order to help you consolidate those utility bills into one manageable payment. That way, you can keep the lights on and the water running! Get a loan for a little more than your current accumulated bill so that you can put a small credit on each outstanding amount. That way, youll gain back your good name from the utility companies, and youll have a month or two of reprieve before you have to start paying back both the loan and the new utility bills you incur. It just might be a period of time where you tighten your belt, but it will allow you to live comfortably.

A Secured UK secured loan has many options. One of those is to consolidate your utility bills and let you begin the fight to win back your good name while keeping the lights on in your house. Many people are choosing to add a secured loan to their financial management plan. Is it the right thing for your out-of-control utility bills?

Building An Emergency Fund – A Vital Part of Financial Planning

None of us have the ability to foresee the future or predict the hurdles which lie ahead of us. This makes building an emergency fund a financial priority. Building an emergency fund is healthy for your financial well being, since youre rarely given advance notice of a setback or an accident which will keep you out of work for an extended period. It is also a safety net that can save you from bankruptcy or severe financial hardships in the event of an unexpected change in your income or expenses.

Housing a small rainy day fund should be a vital part of an individuals financial goals. This is of high importance if you dont already have readily available funds in your account for covering any unanticipated expenses. They provide financial security because they give you funds to fall back on if you become ill, or if you or your spouse loses your job, you incur large medical bills, or have an unexpected large bill such as a major car or home repair. You do not want to end up in a situation where you have to buy daily necessities on credit and end up payments on groceries you bought two years back on credit, with a further 10-18% interest on it.

Saving your money in an small account for emergencies is definitely a better alternative to taking a loan or cashing in your long-term investments. If you take a loan, there is the additional burden of paying interest. Encashment of your investments before maturity means not only will you lose out the interest, but also some part of the original investment. This will also set you back significantly in your overall financial plan.

Success at building an emergency fund depends on consistency of saving money on a regular basis, and resisting the urge to dip into this rainy day fund for non-emergencies. This money should be kept separate from the general savings account. Otherwise you will be tempted to dip into these monies even if you simply run over your budget at a certain point. A substantial part of this emergency fund account should be invested in low risk funds. This ensures that your investment does not lose its value in case you need the money. Also, it should be extremely liquid, to give you access to the cash easily and quickly if you need it.

The size of the special savings account will depend on your personal situation. People often keep three to six months salary in the reserve. But you will have to decide on an appropriate amount based factors such as your dependants and fixed monthly expenses.

If you are single with no obligations, and have a reliable support system of friends or relatives during a financial crisis, you might not need a substantial amount stashed in this fund. This is opposed to someone who needs to pay nursing costs for his aging parents and supporting a young family. The more people you support, the more likely you are to have unexpected or unplanned costs.

While making a decision about an emergency fund, you should also take into account the degree of difficulty you’d have in finding a new job if you lost the present one. In case of a two-income household, the contribution of both parties should be weighed while calculating how much you should keep aside.

You may not be able to gather your emergency fund money together at once. Treat it as a financial goal and add to the kitty over time. If you get a tax refund, put it in your special rainy day account. Maybe a part of the bonus at work!

Financial Budgeting, Income, Costs and Hints (Part 3 of 5)

Part 3 is: Start Saving!

So you are loaded down with bills to pay each month and are wondering how you can begin a savings account for emergencies and other high-expense endeavors. In other words, where can you find that extra cash to put away for later?

Firstly, when configuring your budge, plan for your savings first. You will grow richer each month if you begin to pay yourself first. Before paying any bills, decide on a set amount that you will pay yourself first – maybe five or ten percent – or whatever you decide – of your paycheck. Then, deposit the amount into a savings account before paying any bills.

When you do this at the beginning of the month, your entire paycheck will not suddenly slip through your fingers. If you wait until the end of the month, there may be nothing left to save. Paying yourself first will give you a systematic way to make your money grow. Regardless of your profession or your income, this system will work if you stick to it.

Anoter technique you may try for saving money is to empty your extra change into a coffee can or a jar each day. At the end of the month, roll the coins and put them into your savings account. You may be able to save 30 or 40 dollars each month just with your spare change.

Remember that good money management is more than just a mathematical formula. Its too closely tied with the ups and downs of living to be just that. Your money management plan is always subject to change if your life situation changes. The object of a good budget is to make your money go the farthest in helping you reach your goals, it is not there to force to you to abide by rules.

Dont get discouraged if the budget plan doesnt work perfectly right away. It may involve some revising and editing until it fits your needs. Then, make sure to review it often, and be sure it is making the best use of every penny! Because we know how helpful those spare pennies can be!

Financial success may come in different forms. Financial success does not only mean that you are financially independent, or you have been able to make thousands of dollars off the stock market. To be financially successful, may mean making sure by the time you graduate from college, you are not in debt or worse off than you started.

As essential as it is to secure a part-time job to support your personal wants, you must be aware of the hidden regressors that come uninvited. Your first check in the mail, brings you to some degree, some feeling of accomplishment. Your adult life is just beginning, where you see the value of getting paid for work done. It goes without say that its at that time where you start to take on additional responsibilities. The importance of communication and being able to be reached wherever and whenever, prompts you to procure a wireless. The apparent need of getting to and from your job incurs the cost of driving insurance, gas and all other related transportation expenses. Indubitably, acquiring a job doesnt always mean money inflow; it creates a path for money outflow. One needs to be prepared for the unexpected and the ability to be financially successful.

Credit cards: a friend or a foe? When the due date for bills draw nigh, and the checks are not coming in as often as you would have expected, many students feel pressured to use credit cards as a means of a short-term loan. This method where you plan on immediate repayment is not harmful; however, many students misconstrue that credit cards are an invention to make college life luxurious and comfortable. Wrong!

Saving is sometimes barely doable for some students, since they end up owing money to all these credit card companies. Our system is designed so that without good credit, one is limited from doing a lot of things. It is thus sagacious if we use our credit cards wisely. Use credit cards for things you know will definitely bring you a return. For example, use your credit cards to buy gas to take you to work. When you decide to use your credit cards to buy all the possible clothes on sale; and the purchase is backed by the conviction of repayment after you graduate, put the credit card back in your book bag.

Credit cards can either make you or unmake you; this is because if you use them wisely, once you graduate, it will be easier to get a loan for a new car or a lower security deposit on that new apartment. For the college students that work, there is always a possibility of saving your money, even if you cant save a lot; you can still save a little. Try to research online, for banks that offer high interest rates on their savings account. The proliferation of online savings accounts has undeniably increased the interest rates, and thus the potential to earn more on your savings.

To be financially successful means to be free from debt, in the college perspective it is to try to avoid a post-graduation debt. The broke college student has the ability to be financially successful, if means are taking to save more and use credit wisely.

Sometimes you need extra money for unexpected expenses like car repairs, unexpected bills, health expenses, school expenses, or a myriad of other reasons. Where do you go to get money for these unplanned expenses? Personal loans are available from many different companies and lenders for consumers today whether you have good or bad credit.

Your first place to try to get a personal loan is from a bank or credit union. Many times, they can offer you a loan based on your credit record. Personal loans from a bank or credit union usually do not have collateral attached to them and they are loans based on your name and credit record. Banks and credit unions are a great place to go for a personal loan if you have comparatively good credit.

Another place that you can get a personal loan is from a personal loan company. There are many of these places that will give you a loan. They usually need you to list some sort of collateral, but if you have a job and a consistent home, then they will normally approve you. This is a good option if you cannot get a loan at a bank or credit union but you need to be a smart consumer and ask questions before signing any loan papers. You need to know the interest rate, the length of the loan, and the monthly or weekly payment amount. Make sure that you can meet the requirements of the loan or you will end up in a worsened financial situation.

There are other options available if the above two choice do not work out. You can take items from your home to a pawnshop to get a loan. This will be a higher interest rate, but if you do not have any other options, this is a good choice. A car title loan is an option, but you need to keep in mind that you will lose your car if you do not make timely payments. A payday loan company is also an option but you need to be sure that you understand the terms of the loan. You need to understand the terms of any loan that you take out to make sure that you can make the payments and pay the loan off. Some of these options are a last resort, but if you need the money for a necessity, it may be your only choice. Just be sure that you go into the loan process knowledgeable about the details of the loan.

There are times in your life that you will need extra money for unexpected or unplanned expenses. It is always best to plan ahead and have a savings account for these expenses, but sometimes it is just not possible. If you do not have any other options, then you may have to take out a loan to cover these expenses. Getting a personal loan can be stressful and difficult at times, but if you do your research and know what you are getting into, then you are sure to be satisfied with the result!

You have seen their ads and you may have wondered if they are worth a second look. What am I talking about? Online banks! Also known as internet banks, these are financial institutions who provide the majority of their banking services over the internet. Typically, online banks offer consumers high savings rates, low loan rates, and a mix of other services. Let’s look at 7 winners in this fast growing field:

1. E Trade Bank Part of E Trade Financial, the discount internet stockbroker. E Trade Bank offers checking accounts, money markets, and certificates of deposits as well as a VISA credit card.

2. Netbank Along with offering checking and money market accounts, Netbank provides mortgage and home equity lines of credit to customers. With tie-ins to affiliated companies Netbank also offers Auto, Homeowners, Condo/Co-op & Renters Insurance and Life, Health, Long Term Care & Dental Insurance.

3. Virtual Bank VirtualBank, a division of Lydian Private Bank, is a federally chartered bank regulated by the Office of Thrift Supervision. The bank offers checking, savings, and credit card services to customers.

4. Ever Bank This leading internet provider of banking services offers the most extensive, and varied services of any online institution. Ever Bank offers business and personal checking accounts, mortgages, home equity loans/lines of credit, reverse mortgages, a VISA credit card, and world currency accounts. This latter category is for investing in Deposit accounts and CDs denominated in any major world currency.

5. Emigrant Direct Part of Emigrant Savings Bank which traces its roots back to 1850 as a service provider to Irish immigrants. Emigrant has $10 billion in assets and more than $1 billion in net worth. It operates as a full service bank through 36 branches in the New York metropolitan area, and through EmigrantDirect.com. Emigrant offers only consumer services online; their high paying savings account is a chief investment vehicle.

6. ING Direct ING is a global financial institution of Dutch origin offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in more than 50 countries. ING offers mortgages, loans/lines of credit, savings accounts, certificates of deposit, and money market mutual funds through another division.

7. MetLife Bank Yes, MetLife. A division of insurance powerhouse Metropolitan Life, MetLife Bank offers savings accounts, certificates of deposit, money market accounts, mortgages, and IRAs to consumers.

If you are banking exclusively with a “brick and mortar” institution you may be missing out on high paying investment options or competitive loan rates that easily undercut many traditional banking entities. These online banking success stories are only part of a growing number of savvy providers, some of whom are definitely worth a closer look by you, the consumer.

When travel and lodging are cost prohibitive, you can still have a vacation right at home. Yes, in your own backyard. Many of us live within reasonable distance to museums, campgrounds, historic sites, and beautiful state parks. You might be surprised at what you find in your own local area.

Do some research in your area to find free or low cost activities and sites to visit. Schedule something for each day of the week, even if it’s just a park visit for a picnic. Some areas have local public beaches. Plan an outing at a local public beach. Visit historical sites. Many of these are free, educational, and fun for parents and kids.

You can even plan activities at home just as if you were at an exotic vacation spot. Have a different theme for each day. For example:

1. Beach day – sun tanning, volley ball, make some fancy icy drinks to sip on in the sun, have a picnic.

2. Camp day – stay in a tent or sleeping bags under the stars, build a little fire if allowed in your area, roast marshmallows, make smores, sing campfire songs.

3. Have a backyard fair – create booths with games like ring toss or balloon popping to win little prizes.

4. Colonial day – dress, and live in another era!. This is great fun. I thought of this one purely by accident when the electricity went out one day. The kids expressed how “neat’ it was to live like they did in the “old days.” No lighting except candles and lanterns, no T.V. or radio, no video games or computer. Sounds boring, but believe it or not, they had fun coming up with ideas to keep occupied. A good teaching tool too! Shhhhhhhh.. don’t tell the kids.

5. Cultural Day – Live, celebrate, dress, and eat as you learn about different cultures. Some examples might include an Irish, Native American, or Spanish Day. Another great learning experience. Try to include some ethnic games to make it even more fun and interesting.

These “theme days” at home will take some imagination and a little work, but will be loads of fun for everyone. Half the fun will be in the creation, so let everyone pitch in. With a little imagination and creativity you can have a wonderful vacation right in your own backyard. You may even have more fun than actually being in another part of the world!