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Minimising Risk and Cost When You’re Out On The Roads

February 7th, 2017 Posted in Money Tips
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Driving in winter definitely comes with extra risks that aren’t a problem during the rest of the year. Rain, snow, and ice all cause slippery road surfaces meaning it’s easy to lose control or take longer to brake which is a big issue when it comes to emergencies. So being cautious on the roads is more important than ever, not only for your safety but for your finances too since car troubles can be extremely costly! Here’s how you can save cash while minimizing risk when you’re out on the roads.

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Do Regular Vehicle Checks

Don’t just wait until your MOT to check if your vehicle is safe. There are checks that you should be doing all throughout the year (particularly before long journeys) to make sure everything is in full working order. Your wipers should clear your windscreen properly so that visibility isn’t reduced in the rain, all of your vehicle fluid levels should be above the minimum line, and the brakes should feel firm and slow down the car properly. Having some de-icer, a warning triangle and a hi-vis vest in car is useful in case of an emergency. The tyres on your vehicle should also be a priority, they should have a minimum tread depth of 1.6mm- any lower than this and you’re breaking the law. But to go a step further, invest in some winter tyres which give the best grip when the ground is slippery. Any problems with your car can hugely increase the chance of an accident. Whether another car or property is involved, if it’s deemed to be your fault due to neglecting to maintain your car you will be stuck with some costly repairs to fork out for. Sometimes it’s not clear cut who was at fault in an accident, if you believe you have been wrongly accused then you could visit a lawyer’s website such as https://www.warriorsforjustice.com/ for more information.

Consider Breakdown Cover

We all know how expensive car repairs are, and breaking down is a nightmare just about every car owner will face now and again. But you can cushion the blow by investing in breakdown cover. These companies will first try to fix your car on the roadside, but if not will tow you to a local garage. If you buy cover up front, it works out a lot cheaper than having to book an emergency breakdown visit, so it’s always worth being covered just in case. Make sure the company offers 24/7 and 365 days a year service to give you full peace of mind.

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Only Make Essential Journeys

In bad weather conditions- snow, ice, fog- only make journeys if you absolutely have to. It goes without saying that the more you’re out in these circumstances, the more likely you are to have an accident. Could you walk instead of drive, or skip that social meet with friends until the weather has cleared? Sometimes it’s unavoidable, and you need to drive, but think carefully. Be extra cautious, keep your wits about you and always maintain a safe separation distance since it will take you longer than usual to brake.

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Financial Life Lessons Every Parent Should Teach Their Children

February 7th, 2017 Posted in kids and money, teaching children about money
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People say that knowledge is power, but what if you don’t posses the knowledge you need to succeed? The unfortunate answer is that you won’t succeed, at least not to the level that you desire. If that is a scary thought, it gets even scarier when you apply it to your children. Every parent wants their kids to lead a happy and prosperous life, so every parent needs to impart wisdom along the way. There are some things that they don’t teach at school, and that is where you step in and fill in the gaps. Finance is probably the best example, which is why you’ll find the best financial tips to teach your kids below.

Wait For The Right Moment

Kids are impulsive and want everything as soon as possible. Hell, there are a lot of adults that fit into that category too. But, there is a problem with this way of thinking: it leads you to make financial mistakes. Have you ever wondered why some people are in mountains of debt? The easy answer is that they have bitten off more than they can chew. Of course, everyone wants nice things like a car or a house, but they shouldn’t come at the expense of a family’s future. The sooner children learn they have to wait, the better the decisions they will make with in the future.

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Don’t Be Scared Of Big Decisions

The big decisions aren’t ones to fear; they are ones to cherish. The great thing about making big decisions is that they often have the biggest rewards. Take buying a house as an example. To buy one, most people need to take out a mortgage. Since the crash in 2008, the term mortgage isn’t one that fills people with trust. In fact, lots of people think that a mortgage is a bad idea. The truth is that a mortgage is essential as long as you understand it inside and out. Nowadays, that is a lot easier to do when you go online at CalMtg.com and other mortgage professionals. With the right amount of patience and confidence, your children’s finances will never be in doubt.

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Save, Save, And Save Some More

Okay, so it isn’t a great time to save especially now interest rates are lower than before. Still, there will come a time when they will rise, and your children will want to take advantage. Although spending is more fun, saving is the practical option. It is the financial tip that will ensure your kids will always have money for a rainy day. Excuse the cliché, but it is true. Parents can’t always bail their kids out when they are in too deep, and kids need to learn this important life lesson. Putting away a little every month is a great way to create a buffer, and if it doesn’t come in handy they can spend it on a holiday.

The above is only a small glimpse into the big bad world of finance. Even so, a little bit of knowledge can go a long way.

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Saving for School: How to Deal with Student Debt

February 3rd, 2017 Posted in Money Tips, student debt, student finances
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Education is hugely important. It provides us with the tools we need to thrive in life, arming us with knowledge and creativity. However, the higher levels of education come at a cost and one that should be planned for well in advance.

University fees are on the rise and often students leave full-time education with huge debts hanging over them. Despite the size of the figures involved, these student debts are manageable if you follow these tips.

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Plan while you can

Depending on where you went to university and what type of loan you took out, it’s quite likely that you have some form of grace period before you have to start paying it off. In the UK, this is based on your salary, while in the US it could be a fixed length of time. In either case, make use of this period of time to plan your student debt repayment.

Come up with a budget and personal repayment plan that looks at your income, outgoings and student loan contributions. By planning ahead you can manage your debt better once the repayments begin.

Don’t panic

One of the impacts of student debt that is less talked about is the mental burden that it creates. Just hearing the words, “you owe $20,000” for example can deter a lot of talented teenagers from attending higher education.

The important thing is to not panic when thinking about your student debt. No matter how much your course costs, you can manage your finances if you have a clear head and a clear plan. Education is the bedrock of society, so do not let money worries stop you from pursuing your dream.

Debt is not necessarily damaging

Although living with debt is not ideal, student debt is not the same as owing thousands to a loan shark. Paying off your loan doesn’t mean that you have to live off sawdust and hay for the next twenty years either, in fact you can still make the major purchases that you’ve always dreamed of.

Many organisations now view student debt in a more forgiving light than they used to and are willing to offer a number of financing options. Doctor loans, for example, are available to recently graduated medical students to help them purchase a home and other graduate professions are granted similar benefits.

Help yourself while helping others

If you’re based in the US, it is worth looking into volunteer programmes that offer “student loan forgiveness.” Although you’ll still have to pay off some of your debt, a portion may be written off or deferred. By signing up to a volunteer scheme like this, you get to help others while helping yourself to a debt-free future.

Another useful site in the UK is the Money Advice Service who offer free advice on how to deal with debts after you graduate.

Live within your means

A good tip for anyone, but particularly recently graduated students, is to live within your means. After leaving student life behind, it may be tempting to suddenly start living a more extravagant lifestyle, making the most of your real-world paycheck. However, make sure you don’t overdo it.

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A Financial Action Plan For Those Living Abroad

February 3rd, 2017 Posted in Money Tips
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With a sluggish economy at home and the hollowing out of the middle-class, many people are looking overseas for opportunities. According to Troy Peden, the co-founder of an overseas internships companies, people are rethinking how they’re living their lives in light of the fact that there seem to be fewer opportunities in wealthier countries. He says that there are plenty of opportunities for work and volunteering overseas which offer a richer and more fulfilling life.

But before you hop on a plane and move overseas, there are some things that you need to take care of, Peden says. Failing to do so could have devastating consequences. Here’s what he says families should do.

Build Up A Nest Egg

According to Megan Fitzgerald, the founder of a career site, families often underestimate the amount of money they need to get set up in a new country, as well as how long it takes to find a job. They might be particularly skilled in their industry, but often industries vary from country to country and there might not be the opportunities they expect if they move abroad.

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Fitzgerald recommends that families put at least nine months’ savings in the bank, just to be on the safe side. She suggests investing money in a “low-risk savings vehicle,” meaning a standard 1-year savings account, 5-year account or government bonds. The absolute amount you’ll need to save, she says, depends on your unique situation, how many kids you’ve got, and what kind of lifestyle you want to have when you reach the host country. It’s also worth thinking about economic factors, such as the exchange rate. Your savings in your own currency might be able to tide you over for nine months, but if your currency is weak against the currency in the place you’re moving to, you’ll have less cash in reserve when you get there.

Investigate Banking Options In Advance

Before moving to another country, it’s essential that families thoroughly vet domestic banks. According to Michael Cavendish, a lawyer at a law firm in Florida, it’s important to find out whether a bank has well-developed international clearing networks. For instance, does the bank accept payments using Visa and Mastercard? And does it participate in third party schemes that allow the use of ATMs or clearing payments internationally? Cavendish says that if a bank is involved with third party schemes, it shows that it has been vetted.

He also has advice for families thinking about taking out a mortgage. It’s best, he says, to find specialists, like Enness International, who are experts in the foreign property market and who can help homebuyers find the best deals. Navigating an unfamiliar house market can be complicated, given all the paperwork and mortgage options available.

Find Out What Tax You Have To Pay

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If you’re moving from America to another country, you still have to file your taxes in the US, even if you’ve been taxed already in the host country. According to Steven Elliot, a tax director at an accounting firm in New York, this doesn’t necessarily mean that you’ll have to pay twice. It just means that you need to declare.

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What Practical Help Can I Give My Child When They Buy A Home?

February 2nd, 2017 Posted in financial literacy, Money Tips
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For the past hundred years or so, children have always ‘had it better’ than their adults had it at the same age. But when you look at the instability in the world right now, it’s clear to see that this isn’t necessarily the case anymore. And parents of young adult children have a lot on their plates – not just financially, but practically, too.

One of the perfect examples of this is the price of buying a home these days. The ratio between the average property price and average wage has never been bigger. Work hours are longer. And parents who want the best for their children will need to contribute a lot, in many different ways.

So, if you are wondering how best to help your child buy their first home, read on. We’ve pulled together a few ideas for you that should help you negotiate the major issues.

Teaching

First of all, the best thing you can do with your kids is to help them understand the concepts of finances, mortgages, and interest from an early age. If you are new to this blog, please feel free to take a look around – we have hundreds of excellent advice for parents on teaching children about the value of money, and they can all help your child become financially literate and make better decisions.

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Planning

Parents should always be involved in the planning stages when their kids want to buy a home. It’s especially true if you are – like many other parents these days – contributing some money towards it. So, go through their finances with them, and look at a mortgage calculator with down payment details to see if the home they love will be a viable purchase. Don’t forget, while mortgage calculation tools will give your child a rough guide of what they can afford, the lender they approach might feel differently about their finances. With this in mind, it might be worth helping your kids find a professional mortgage advisor who can work with them to find a home that fits them best.

Contributing

There are various ways of helping your children out financially when they buy a home. You are allowed to gift them money each year, tax-free if below $14,000 (or $56,000 if both parents give to a child and their spouse), which a mortgage company will allow as a ‘gifted down payment.’ You can also offer a family loan – a sensible option if you want to teach your child a valuable lesson in lending and borrowing. This method means that your child gets a cheaper loan, while you can get your money out of a low-interest savings account and you could even charge your child slightly more to ensure you don’t lose any money. Finally, you can co-sign the mortgage. Using this method means you take away some of the financial obligations of buying the home – but bear in mind that you will then be under the lender’s microscope, too.

So, there you have it – any more tips to add? Feel free to let us now and join in on the conversation!

 

 

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