четверг, 11 февраля 2016 г.

How being cheap will leave you broke

Given a chance, most of us would rather save all of our money than spend it. But, in reality, the best move that we can do is to maximize our savings by living as frugally as possible. There are good ones, but some saving ideas might end up costing more in the long run. Here are a few budget blunders you may want to avoid.
Neglecting Basic Maintenance
You home, for example, can be one of the biggest investments of your life. But shrugging off small house issues, such as a dirty chimney, a cluttered gutter, and even an overgrown landscaping, can lead to spending disasters.
Doing your own taxes
If you keep your own records, your tax returns are simple, you have sufficient knowledge on finance and tax laws, you know the right forms to fill out, and which documents to fix and send, then, sure, do your own tax. But if you answered no, then stay out of it and let the professionals save you from interests and penalties for doing it all wrong.
Skimping on food
Food is a big expense. But, oftentimes, choosing nasty food doesn’t help you stay healthy. If you can’t avoid eating out from time to time, prefer healthier alternatives and skip the alcoholic drinks.
Risking your health
Neglecting your health problems because you think you can’t afford them? Expensive and stupid at the same time. A health insurance may appear expensive, but it’s a cheaper alternative than paying for your own medical bills.
Maximizing your savings is all about being smart – to know when ‘cheap’ is actually good and when it can actually cost you more.

четверг, 4 февраля 2016 г.

Why avoid payday loans

So you’re strapped for cash and you just need enough to tide you over until the next payday. Some financial institutions, cooperatives and credit unions offer short-term loans like payday loans or cash advances. So will you avail of these?

They’re really convenient since they give you cash up front without any checks on your credit score and the amount’s usually more than enough until your next payday. But are there any caveats?

The interest’s always a killer. Cash advances usually carry an awfully high interest rate if annualized primarily because they’re only offered for the short term. If you’re careless not to pay up as soon as you get the funds the next payday, you might be in for a 400% to 5,000% annualized interest.

Some credit unions offer craftily-named “Payday Loan Alternatives” but check the conditions and they’re basically the same as with regular payday loans. While the law on credit unions states that the max interest rate is 18%, there are fees (like application and participation fees) that can drive the costs up.