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Things To Consider When Money Lending

Most of us have done it at one time or another: lent money to a friend or family member. The loan is usually done in order to help a loved one meet a goal or to take care of a pressing need. We choose money lending because we want to help. Unfortunately, all too often extending a personal loan can lead to a negative situation. Here are a few points to consider when you are faced with the possibility of floating a personal loan to someone you care about.

The thing about money lending is that the recipient obviously does not have the resources at hand to effectively take care of the matter at hand. That is why you have been approached about the personal loan. It is important that you have an informed understanding about the ability of the recipient to be able to repay the loan within a reasonable amount of time. The repayment schedule should be discussed in detail and the terms of repayment should be perfectly clear to both parties. This is done so that the transaction can be done according to perimeters that both you and the recipient feel confident can be met in a timely manner.

December 31, 2009

General

Keeping An Eye On Your Personal Finances

The majority of us are sticklers for finances at work, but often disregard our personal finance at home. For those who are not accountants, the process of keeping financial records and ensuring all financial items are squared away can be quite boring and often confusing. Instead of ignoring your personal finance until a problem arises, take the initiative today!

The most important aspect of your personal finance is undoubtedly your credit. Your credit score, often a mystical number of much confusion, is critical to your success in the financial realm. Without a respectable credit score, you will be unable to borrow money or obtain a home or vehicle loan. This number can literally hold you back from completing your goals and can severely limit your future.

The credit in your name has a direct bearing on the credit number. Thus people who do not use their credit cards properly and have huge bills running in their names lend a bad streak to their credit. A point to be noted is that it is not the amount you charge but it is the amount that is kept on credit that poses the threat of being harmful. It is important to keep a check on the monthly statement and you should endeavor to pay it in full each month.

In today’s society, identity theft is often a problem. If someone steals your identity, they can wreck your finances, ruin your credit, and tarnish your good name and reputation. In order to prevent identity theft, carefully monitor all your financial statements and safe guard your personal information.

The attitude of most people towards money is spending today and saving later, thus relegating saving for a later part of their life. But this habit catches them unawares in the later part of their life where they get jolted with the rude shocks of a fast approaching retirement date and a non-existent retirement fund. So do not wait for tomorrow, start saving today by putting some portions of your income in the retirement fund account.

One of the best ways to handle the finances is a budget. This is the best way to keep a tab on the finances and keeping the spending in control. When you create a budget you need to make two columns, one meant for the incomes and the second for expenditures. You need to mention all the items of expenditure in the expenses column such as rent or mortgage payment, car payment, insurance, utilities, and food. Whatever is left after deducting all this from the income is the monthly excess that of course can be used in different ways.

It’s a good idea to consult an accountant if you are not sure about setting your personal finance records straight. This person will help you correct any potential problems and ensure nothing goes wrong in the future.

The world of finance is fascinating. There’s no need to be scared of it. Just keep your finances straight and you will be able to build, or rebuild, your credit score.

About the Author

David Neehly is an independent Investment writer for “Investment Finances” at http://InvestmentFinances.com You’ll find all the latest Investment news there.

December 25, 2009

General

Lower Your Standard Of Living and LIVE

Are you one of those people who have been suckered into the concept of endless consuming? It can happen without your even realizing it. Ads hit you from every direction telling what you need to buy to be good-looking and successful. The “right” list usually includes the right car, the right neighborhood, the right clothes, even the right schools for your kids. Have you ever noticed that the list is endless? And there’s those “easy” payments, so why not?

In our society consumerism has almost become a religion with heaven being that blessed day when we can relax because we have it all and are, therefore, OK. I suggest that you think again and on your own this time.

Those who have maxed out credit cards only to obtain new ones know that something is missing in the plan to “have it all”. Peace, freedom, even individuality are often sacrificed to the need to keep up and hopefully surpass the norm. Working longer hours, getting more competitive jobs, pushing and stretching are ways to try to win the battle. But then there’s that bigger house and hotter car, offering a rush, momentarily.

There is a way out but it involves reassessing priorities. It’s usually a long, slow process to over-extend to the point of disaster. Likewise, there’s a way out that can slowly take you in the opposite direction. It’s called…less. Believe it or not, most of us can live quite comfortably in a smaller home and used, paid for, cars can get us where we want to go. Plain foods don’t cost what prepared foods do, and a smaller, simpler wardrobe can still be attractive.

My kid’s father was a carpenter. That meant lots of work in the late spring, summer and early fall. The other six months were pretty “iffy”. Bad weather often prevailed, housing starts and sales slowed down and our income either stopped or was drastically reduced. The answer to this was to set up a standard of living that used half of the good-weather income and left the other half for the lean months. We did that and sailed blissfully through the tough times.

The same thing can be done when retiring. Moving into a park model trailer in a camping club might sound like a sacrifice. However, once you have looked inside a new unit and toured a well-appointed park, you may change your mind. Hot tubs, indoor swimming pools, senior centers are all part of the camping club I belong to.

Why not rethink how your life is playing out and factor in some peace and satisfaction? Why not lower your standard of living and LIVE! Why not indeed?

About the Author

Luise Volta’s life has included careers in nursing, teaching pre-school, interior design, Real Estate sales, insurance adjusting, and dairy herd testing.

December 19, 2009

General

Accomplish Your Financial Goals

When setting financial goals, the goals you set must be realistic. Don’t set goals that will overextend you financially or put a hardship on you or your family.

You will find that some of your goals are long-range, such as purchasing a home, and some are short-range, such as establishing good credit. Is your goal to be debt free? Do you desire to invest in your retirement? Would you like to qualify for a low interest rate credit card? You need to evaluate what you want to accomplish financially and set a plan of action. The following steps will help you achieve your financial goals:

Step 1: Write out your goal. This makes a commitment.

Step 2: Visualize your goal. Cut out a picture of what you want to accomplish. It may be a house, a car, a dream vacation or a needed appliance. Whatever it is, cut a picture out of a magazine and put the picture in a place that you can see it for reinforcement.

Step 3: Set a time frame to accomplish the goal. Remember with establishing credit, it can take several months to get approvals. Be realistic on setting dates.

Step 4: Write out your plan of action.

Step 5: Remove the excuses you have for not following through with your goal. Get rid of these phrases, “I’m too busy,” “I don’t have time,” “I’ll do it later.”

Step 6: Anticipate any situation that may arise that will cause you not to accomplish your goal. If you know of anything in your credit portfolio that could cause you a problem, find a way to correct it.

Step 7: Define your motives. Are your intentions to build a credit portfolio for the future, or for only material gain? This must be determined before you send out your first application. If the motive is only for material gain, DON’T DO IT!

Step 8: Look at all your past experiences. Learn from them.

Step 9: Believe you can accomplish what you start out to do.

Step 10: Do first things first. Do not dwell on what you need to do. Just do it! Follow through with your plan of action.

Remember, your goals will change throughout your life. As you accomplish financial goals, set new ones. Careful planning will not only help you accomplish your goals, it will also give you the boost toward building a successful credit and financial portfolio.

About the Author

Deborah McNaughton is an author and credit expert. She is founder of Financial Victory Institute, which specializes in financial education. Deborah has programs to train individuals to become credit consultants and teach financial seminars.

December 17, 2009

General

What is the Lifelong Learning Plan?

Are you considering going back to school full time but you’re not sure how you will pay for it? If you have savings in your RRSP, you can take advantage of the Lifelong Learning Plan.

The Lifelong Learning Plan (LLP) is a government program that allows an individual to withdraw money from their Registered Retirement Savings Plan (RRSP) to pay for post secondary education and no tax will be withheld. The funds withdrawn can be used for the individual plan owner or for their spouse or common-law partner.

In order to qualify, you must be enrolled as a full-time student in an educational program at a designated institution.

Here are some fast facts about LLP:

You can withdraw up to $20,000.
The maximum withdrawal per year is $10,000.
There is no lifetime maximum. Once the previous plan has been paid back, you can withdraw more funds from your RRSP under the LLP.
You cannot withdraw money that has been contributed within the last 89 days.
You can use the funds to cover living expenses in addition to school expenses while attending school.
You need to begin repaying the funds back into your RRSP in the fifth year from when the plan started or when you are no longer entitled to the education amount on your tax return for 2 consecutive years, whichever comes first.
When repayment begins, you need to pay at least 10% of the amount withdrawn back into your RRSP. You will not be getting another tax refund on the repayment as you already received the tax deduction the first time you made your RRSP contribution.
You have up to 10 years to repay the withdrawals.

For more information, check out this link.

October 24, 2009

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