Personal Finance FAQ


Personal Finance

Saving Money

Question: Save money?
how to save money from my mnthly salery ?

Answer: BUDGET, honey....budget, budget, budget. Write out everything you spend each month, cross it off when you pay it, and don't spend on things you WANT. Only on those you need. Keep a running total of gas money and then come payday, take X amount of cash out (plus $10 just in case) and keep that cash in your glove box to pay for gas. Only use it for gas, nothing else!! You can do that for soda, movies, pizza, etc. That way you won't be tempted to spend extra. I take a certain amount out each paycheck and put it in the savings right away, so it can't be spent, also.

 

Question: How do you save money to relocate to another state, if you are living paycheck to paycheck?
I am hoping to relocate to another state after finding a new job that pays the same or more than I make now. I am living paycheck to paycheck due to extensive debt and expenses due to the cost of living increasing. Moving far off costs money. How can I save when there is barely anything to save? Any ideas?

Answer: Even those living from paycheck to paycheck can find a way to cut their monthly expenses. From cancelling the newspaper or cable TV to cutting out your morning Starbucks coffee or vending machine snacks.
It may not seem like much but it all adds up.

 

Question: What are some ways you save money or cut corners?
My husband and I are always looking for ways to cut spending and to put that much-needed cash into our savings.

What do you do to save money?! What do you cut corners on? What money saving tips do you have?

Answer: I cut corners by brewing my own coffee at work in the morning or in the afternoon when I need a cup. Avoid buying bottled water in the store, but bring my own as much as I can. Make dinner at home and bring lunch to work. I have a motorcycle, so sometimes I commute on my motorcycle to work, and to friend's gatherings, and run some errands. I either go see matinees or use coupons to rent movies. I never done this because I like to have lunch by myself (nice and quiet) so never try this tip that I read somewhere before. That is buddy up with couple people at work and rotate to bring lunch. It is like family cooking at home, more peopl eat together actually save money. I think this is a good idea because if you have family that kind of save some of your time preparing lunch (since you guys rotate to bring lunch to work). If you like more tip, I think there is a website something Frugal.com...google it.

 

Question: How do I save money without being tempted to buy something that is not needed?
I'm kind of a big spender, I buy alot of clothes but i really want to save! anyone got any tips or ideas how to save? and i'm always being tempted to buy stuff.

My parents don't give me money anymore to put in my banks. im with a high interest bank so all i need is just the money.

Tips please?

Answer: read alot, alot of books from the library, eat alot of cheap food at home while you do it, enjoy nature, its free.

 

Insurance Brokers

Question: Insurance brokers?
Y do insurance brokers force u to join bt whn its time for the insurance to pay up they tell u all sorts of stories Even though ur account was never on arreas!!! please help guys........

Answer: dude. Why do people ask questions without using proper English, and hope people can figure out what they mean??

Ever go to a horse race, bet on a horse to win, have it come in second, and ask them to pay out anyway? That's what you're doing. If it's not covered, it's because you didn't buy that coverage.

Insurance is gambling. And if you bought your insurance with the same care you typed this question, I understand why you didn't buy the coverage.

Question: Changing insurance brokers and they want my old policy number?
I'm changing insurance brokers and they've asked for my policy # with the other firm. What do they do with the number? Do they check it or keep it as a reference?

What if I've just moved into an apartment and haven't had insurance on it before? What do they do then?

Answer: They check it to see if you made any claims against it, your payment history, etc. to assess your risk.

Question: Where can I find an e-mail directory for Insurance Brokers?
I'm looking for a directory of insurance brokers / companies / networks, etc. that specialize in Risk Management, Property, General Liability, & Worker's Comp. Any / All states will do. I'm trying to get some information from different companies. If anyone can help me, please do.

Answer: I don't think there is one. I mean, think about it. If you wanted to spam brokers, isn't that the first place you'd go?

On the other hand, if you contact www.iiaa.org, you can probably PAY ADVERTISING to put an ad in the monthly magazine. But no one will help you spam them!!

You COULD just go to your local yellow pages, call a buncha brokers, and ask them for an email address.

Question: Insurance Brokers. What are the pros and cons of working there?
I may have a job interview. What are the good points of working at an insurance brokers? The job is 'broker support' and data entry. The wages are pretty good though, so it may be worth persuing. Thanks in advance.

answer: If you're doing support then you're probably not getting commission, which is one of the things I enjoy most about being a broker.

I also like that I can work from home, on the road, or in the office. I can set my own hours and pretty much be my own boss for the most part.

The Cons are that the insureds you have assume that you work directly for and know every single thing about the Carriers insurances which you sell.

This is quite impossible. I have over 15 Carriers for Life, Health, and Disability Insurance and it is impossible to know all of their products, claims proceedures, underwriting polices, etc.

Other than that I love it.

 

Start Your Own Business

Question: For those of you who own your own business, what was the defining moment that made you start?
Also, how did you determine the type of business that you wanted to open? What sort of start-up costs did you encounter? How long until your business started returning a profit? Are you better off now after starting your own business? Any tips you'd care to share?

Answer: 42 yrs old, hated what i was doing and knew i would not earn what i needed (commission sales) started business in field which i had extensive knowledge and experience plus contacts. 50k sba backed loan. made money first year (paper loss) just sold co after 16 yrs...best thing i ever did.

best tip...first plan and research, second, plan and research, third look for all the flaws in 1 and 2 then adjust plan and research based on findings, then ask if you can live with worst case outcome if you can, go for it and make your plan. use the seven p's proper prior planning prevents piss poor performance

 

Question: Who do you have to be to own/start your own business?
Who has the opportunities, (in the U.S.) to start/own your own business. I would like to start my own business. But in todays society I'm not sure that everyone has all the opportunities to do this. Do you need a degree, lots of money, good credit, and does ethncicity effect your chances, of getting the help and support that one needs from government programs, and other organizations? All help is appreciated.

Answer: You need to be a driven self starter that follows through tenaciously with your idea. You need to do homework on your product, who you will market it to, have a business plan, and startup cash. Many agencies will help with this if you have a business plan and market analysis.

 

Question: If you start your own business, how do you go about paying/taking out taxes throughout the year?
I was just wondering....how do you take taxes out of your own paycheck? Thinking of starting a business and I don't want to owe thousands of dollars at tax time. I live in NC if that makes a difference...

Answer: You have to pay taxes quarterly. Basically, you look at the income you have each quarter (revenue minus expense) and look up how much tax is owed. Then, you submit a quarterly income tax payment form to the IRS with the check. At the end of the year, you finalize the taxes, and on your tax form record the amount of quarterly checks paid. At the end of the year you either have to pay them the difference, or they have to refund you if you've overpaid. The best way I've found to keep track of this is to purchase QuickBooks, keep records in that program, and then send your accountant your file at the end of each year. It's relatively painless.

 

Student Loan Debt Consolidation

Question: What is the lowest credit score I can have to get a student debt consolidation loan?
i have a lot of student loan debt and want to consolidate. however, i'm sure that because it is a private loan they're going to run my credit. do you know what is the lowest score i can have to consolidate?

I don't need debt management- my bad credit is the result of the ratio between my income and huge student loans. This totally messes with your credit. I'm working with a law firm to get this under control. I just need to consolidate my loans and while I can wait until my credit improves, I want to start saving money now.

Answer: Around 600

 

Question: Is student loan consolidation better than debt consolidation?
I am approx. $65,000 in student loan debt and my yearly income is approx. $32,000.

Deferment ends in September.

I also have a mortgage and other bills.

Any advice is appreciated. I'm getting confused by all of the student loan consolidation sites vs. the debt consolidation sites. Debt consolidation sounds too goo to be true--paying off $65,000 in 5 years? Really?

Answer: Consolidation loans often reduce the size of the monthly payment by extending the term of the loan beyond the 10-year repayment plan that is standard with federal loans. Depending on the loan amount, the term of the loan can be extended from 12 to 30 years. (10 years for less than $7,500; 12 years for $7,500 to $10,000; 15 years for $10,000 to $20,000; 20 years for $20,000 to $40,000; 25 years for $40,000 to $60,000; and 30 years for $60,000 and above.) The reduced monthly payment may make the loan easier to repay for some borrowers. However, by extending the term of a loan the total amount of interest paid is increased.

In certain circumstances (for example, when one or more of the loans was being repaid in less than 10 years because of minimum payment requirements), a consolidation loan may decrease the monthly payment without extending the overall loan term beyond 10 years. In effect, the shorter-term loan is being extended to 10 years. The total amount of interest paid will increase unless you continue to make the same monthly payment as before, in which case the total amount of interest paid will decrease.

The interest rate on consolidation loans is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%.

If a student consolidates their loans before they enter repayment, the interest rate used is the lower in-school interest rate. Thus, although the rounding up of the weighted average can potentially cost the student as much as 0.12%, a student who consolidates before entering repayment can save as much as 0.6%, a substantial net savings. (The in-school interest rate is 1.7% plus the 91-day treasury bill rate from the last auction in May. During repayment, the interest rate is the 91-day T-bill rate plus 2.3%.) This loophole has been confirmed by an excerpt from the Federal Register and direct correspondence with the US Department of Education. Additional details can be found in the interest rate loophole section.

Some graduate students have found it necessary to consolidate their educational loans when applying for a mortgage on a house.

To find out more about Student Loan Consolidation, check with below sites.

 

Question: Can you use a student debt consolidation loan for personal use?
I have researched online and am still not clear on how this works. I really need a personal loan to help out with some other bills and am no longer able to take my classes. I am now in deferrment on my federal loan and they don't do credit checks or anything for a consolidation loan. Just curious.

Answer: Depending wich type of student loan consolidation. Private (finance companies) consolidations may accept to include personal debts in the loan.


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