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Make Driving A More Financially Viable Part Of Your Life

December 12th, 2016 Posted in financial education, financial literacy
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Most of us need a car to get through our daily lives, and they unfortunately can end up costing you a lot of money. There are many different ways in which you end up having to spend money for a car and car-related concerns. If you want to reel in the spending, however, and make more of your financial situation, then it might be wise to take a look at your driving habits. The fact is, you can probably find ways to reduce the amount of money you need to spend on driving if you are careful and a little clever about it. In this post, we are going to look at how to do just that. Let’s see how driving a car can be made to be more financially viable for you.

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Driving With Efficiency In Mind

So one of your main expenses is always going to be the fuel. There is very little that you or I can do about the price of fuel, and it will probably always be on the increase in line with inflation and other factors beyond our control. What we can control, however, is how much fuel we actually use. You might be surprised at what a difference you can make to how much fuel you use, if you just put a little thought and concentration into it. For example, limiting the amount you brake, avoiding steep accelerations and always staying in the right gear are three powerful ways to limit the amount of fuel you use. It is also helpful to turn off your engine when you are stuck in traffic for a long time, as even just sitting stationary can waste fuel.

Seeking Compensation After An Accident

Nobody wants to think that they might be in an accident, but the truth is it can happen to just about anyone. There are certain things you can do to minimise your chances if it happening, but only a limited amount. If you are in an accident, however, you can ensure that you at least receive compensation for it. With the right personal injury protection, you should find that you are able to get the compensation you truly deserve for an accident that isn’t your fault. While this might not be the first thing you think of, it is likely to become very important to you if you do suffer this unfortunate fate.

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Choosing Your Car Wisely

Of course, a major expense in driving is on the actual car itself, and knowing how to choose this well will go a long way towards ensuring financial stability for you in the long run. If you are stuck between cars, it can often help to take a step back and think about the ongoing costs as well as the upfront cost. Different vehicles have different levels of efficiency, for a start, as well as differing reliability levels. If you choose your car carefully, it can make a big difference to how much you spend on driving overall.

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The Critical Difference Between Making Money And Building Wealth

December 12th, 2016 Posted in financial education, learning about money, millionaire mindset
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There’s a big difference between making money and building wealth. Making money is all about generating as high an income as possible by getting a high paying job or running a business. Building wealth, on the other hand, is about creating a stock of value that goes up over time.

Recently, US Trust went and asked more than 600 people with a net worth of over $3 million how they built their wealth. The report, entitled, Insights on Wealth and Worth, generated a significant amount of data which made clear the difference between making money and building wealth.

Here are some of the insights from that report that we can all use.

Build Wealth Slowly

The widespread perception of wealthy people is that they grew up with a silver spoon in their mouths, having rich parents and ample opportunity to do well in the marketplace. But it turns out that that is a bit of a myth. According to data from the study, 58 percent of respondents said that they had humbled middle-class beginnings, and a further 19 percent said that their families were outright poor. Further evidence indicated that only around 10 percent of the wealth of people in the study had actually come from inheritance. The rest of it (more than half) had been earned through income, and around 30 percent of it had come from investments.

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What this showed, therefore, was that most wealthy people got to where they are today through traditional methods, like saving their money and making sensible investment decisions. Many said that they had a lifelong history of saving and investing, some beginning to do so as early as age 14.

Go With Basics Rather Than Newfangled Investments

What was so interesting about the survey was that the majority of individuals didn’t do anything innovative when it came to their investments. 89 percent invested in stocks and bond and in their businesses. Only 11 percent attributed their success to alternative forms of wealth management.

What this indicates is that the simplest methods are still probably the best. Yes, big investment houses might have complicated algorithms that make millions of well-diversified transactions every second on the stock exchange, but most people built their wealth through simple mechanisms, like a cash advance online to kickstart their businesses. It’s about having a great business idea or a well diversified portfolio – not looking for some get rich quick scheme using an unreliable investment product.

Ride The Market, Don’t Guess

Most people who get into investing think that they have to regularly predict where the market will head next. Sell high and buy low, right? Well, although that might sound like a great idea, it’s not usually how it works in practice, and it certainly isn’t how the majority of wealthy people in the study made their fortunes. According to the report, only 14 percent said that they made the bulk of their money by timing their investments. The rest said that it was just a case of “buy, hold and wait” for the stock price to go up.

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Brave Enough To Buy-To-Let

November 29th, 2016 Posted in financial education
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Buy-to-let has seen a resurgence in recent times.

As an income investment for those with enough money to raise a big deposit buy-to-let looks attractive, especially compared to low savings rates and stock market swings.

Meanwhile, the property market bouncing back has encouraged more investors to snap up property in the hope of its value rising.

Mortgage rates at record lows are helping buy-to-let investors make deals stack up.

But beware low rates. One day they must rise and you need to know your investment can stand that test.

There is also a tax rise coming, as buy-to-let mortgage interest relief is axed and replaced with a 20 per cent tax credit.  Additionally, from April 2016 landlords now have to pay an extra 3% stamp duty on property purchases.

Recent history provides an important lesson in how returns can be hit. Many investors who bought in the boom years before 2007 struggled as mortgage rates rose. A sizeable number were thrown a lifeline when the base rate was slashed to 0.5 per cent. Rates have stuck there since 2008, but remember they will rise again.

Yet despite the tax changes and potential for mortgage costs to rise, greater demand from tenants, rents that should rise with inflation and the long horizon for interest rate rises, mean many investors are still tempted by buy-to-let.

If you are planning on investing, or just want to know more, there are essential things to consider for a successful buy-to-let investment.

Like any investment, buy-to-let comes with no guarantees, but for those who have more faith in bricks and mortar than stocks and shares there are many things you need to know. On a positive note, good advice is plentiful and nationwide and whether you are looking for conveyancing solicitors  or the perfect insurance company, there is no shortage of resource available. Some of the finer details are included in this helpful list.

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Essential house purchase documents

Buying a house is a long, complicated process and it’s all too easy to forget the finer details. We take a look at the essential documents you should have with you once you complete your house purchase.

 Essential house purchase documents your solicitor / conveyancer should provide

  • Title Deeds: Normally you won’t have title deeds – this is because the Land Registry records are now all digital.
  • You may have title deeds if your property hasn’t been registered before, but this is becoming quite rare. You should still get confirmation from your solicitor that s/he has registered you as owner of the property– your solicitor should provide you with a copy of the registered title showing you as “registered proprietor” within a month or two of completion.
  • If your property is leasehold, your solicitor should give you a copy of the lease (with lease plan of your property) and any service charge accounts or forecasts.
  • Your solicitor’s report on title is a useful document to keep handy. As well as including a summary of the legal title and property search results, it should also have attached the seller’s property information form which contains lots of useful practical information like the location of the water stop cock, electricity and gas meters and confirmation of who is responsible for which boundary fences.
  • For new builds (or properties under 10 years old) – you should have a copy of your Buildmark (NHBC) or other new home policy/warranty documents.
  • Confirmation from your solicitor that stamp duty has been paid (within 30 days of the completion date).
  • As appropriate, you should have a copy of any restrictive covenant indemnity insurance policy, chancel repair indemnity insurance or any other legal cover if required by your solicitor (if it is required, the reasons for this will be explained in the solicitor’s report on title).

Essential house purchase documents from your seller (if not already provided by your solicitor / conveyancer)

  • Guarantees – e.g. any recent damp-proofing, new appliances (oven, boiler, etc), FENSA (double-glazing) certificates. FENSA certificates last 10 years; damp proofing guarantee should also be about 10 years. New appliances can have a warranty period of anything from 12 months to perhaps five years for a boiler.
  • Records of servicing of boiler.
  • Electrical certificates for any electrical works/rewiring.
  • Building control certificates for any extensions or conversion works that may have been done to the property.

Essential house purchase documents as a buyer

  • Buildings insurance policy details and contents insurance policy details (if you decide to have contents insurance).
  • Survey – if you have had a survey, it is useful to keep a copy of this to remind you what issues were raised/might need attention soon
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Injured and Out Of Work – How To Keep Making Money

November 29th, 2016 Posted in financial education, income
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Being employed and getting injured will generally make you liable for sick pay. But what if you’re unemployed and injured – where do you go from there? For most of us this is a nightmare scenario. Sure, there are unemployed people out there who will reap the system after spraining an ankle. But for most of us this isn’t the case – we want to work and an injury can be massive setback, preventing travelling to interviews and doing any trial shifts. That said, all is not lost. If you need to make money, here are the ways you can do it.

Work from home

There are a surprising amount of jobs out there that that you can do from a laptop or phone from the comfort of your own home. The more well-paid jobs – writing jobs, web design, accountancy and sales – may require qualifications or experience. But there are other money-making methods out there that don’t such as answering surveys.

Interviews may not be needed, although can be conducted over the phone or Skype if necessary. It is important to tell your employer that you are injured, even if working from home. Many employers may respect your work ethic enough that it could serve as a bonus in the hiring process.

Sell items online  

Although you may not be able to go out to the shops and flog items, you can still do it online. Being housebound may in fact be
the perfect opportunity, giving you the chance to assess your belongings and declutter what isn’t needed. You can pay for people to pick up items and also get packaging sent directly to your door, so that you don’t have to go out to the shops and get it. People have made livings buying and selling things online. You will need to declare tax if it becomes a regular income, but it can still be worthy venture if you’re going to be out of action for a while.

Make an insurance claim

Some people will sue for anything. Others will never make a claim for an injury, even if they are perfectly in their right to. Consider how you got your injury – could it have been prevented if health and safety regulations had been put into practice. Personal injury claims could be worth pursuing if somebody else was responsible for your injury. Don’t be too proud and let others get away with putting you out of work.

Look into benefits

If the extent of your injury if so severe and you cannot physically work (even from home), contact the Department for Work & Pensions and they may be able to give you some worker’s benefits. If you’re particularly sick or have just gone through a serious operation, this could be worth pursuing as a temporary relief. Just remember that this will have to be your sole income – no extra job from home on the side!

 

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Should I Teach My Kids About Identity Theft?

November 18th, 2016 Posted in financial education, financial literacy, financial literacy for kids, kids and money, learning about money
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We’re hearing more and more about identity theft these days. But it’s rare that we consider our children when thinking about the subject. But, whether you have a child who is using the Internet or not, it is still something you should approach with all your family. In today’s guide, we’re going to take a look at why it is so important. We’ll also suggest a few ways you can teach them about how to keep their personal information safe.

Who steals a child’s identity?

It doesn’t compute, does it? Surely no one – even a criminal – would take a child’s identity for nefarious means? Sadly, it’s far from the case. There are several reasons why someone might want to get hold of your kid’s identity – and it could be a goldmine for them. With a social security number, they can apply for a passport or another type of ID card. They could set up a bank account, or even apply for a credit card. And worst of all, they can use a child’s ID to snoop on them, which could put your kids at risk.

Social networks and devices

Don’t forget that more kids than ever are now using social networks, emails, and own phones. It doesn’t take much to find out a lot about your child if someone got their hands on a phone. They could have access to sensitive pictures or messages, and use that information to blackmail your child. They could use your child’s identity to befriend another kid, and encourage them to do something dangerous. And, of course, there is a lot of information you can glean from the data left in photos posted on social networks. So, don’t underestimate the importance of talking about identity theft with your children. There are many ways it can affect them – and you. Let’s take a look at some of the things you need to consider when exploring identity theft with your sons and daughters.

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Understanding the problem

Of course, before you start teaching your child about identity theft, you’ll need to arm yourself with the knowledge. The sad truth is that many adults aren’t even aware of the danger they can sometimes leave themselves exposed to. With this in mind, here’s some tips to prevent identity theft that you need to follow. Start by ensuring that you follow the basic rule of protection – having a robust and secure password, for instance. It’s important to set a good example for your kids if you want them to follow suit. You should also invest the time to find a robust and reliable cyber security program. You don’t have to spend a fortune – there are many fantastic products out there for free. Finally, never by anything from an unsecured online store. The risk of a hacker getting hold of your financial information is just too great.

Influencing behavior

Once you start following the guidelines above, it will be much easier to teach your kids to do the same. The idea is to make these simple rules a habit. When you sign up for a service, you always create a new password. Only pay for goods when you are on a secure WiFi channel. If you start quizzing your kids about the differences between a secure and insecure website, they will soon pick it up. Don’t forget; the chances are that your child will end up a lot safer online than you have ever been. It’s much easier to pick up these habits when you are young.

The dangers of the web

The final lesson is to explain the dangers of the Internet. Kids these days spend a long time online – they even use it in schools. The trouble is, it’s like second nature to them. They are unable to see the dangers of talking with strangers or sharing information online – unless you explain them. Speak to them about how easy it is for people to give up valuable information to others while online. Use some examples – you might try sharing a picture on your account and seeing how far it can travel. Try to avoid frightening your child, however. You don’t want to teach your child that the world is a scarier place than it is. It is vital to keep things positive.

As you can see, it is imperative that you teach your children about the dangers of identity theft. By giving them knowledge at an early stage, their behavior will become habitual. Your kids will be careful, and understand when – and where – there are potential risks.

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