Buying a new home involves many tasks including finding affordable, reliable homeowner's insurance. Insuring your home is important to protect it from potential hazards such as fire, weather damage, theft, etc. Liability homeowner's insurance provides financial protection for your assets in the event someone gets seriously hurt on your property. The question now is, "Which company should you choose?"
Choose the Right Location
Before buying or building a home, consider the average cost of homeowner's insurance in that area. Most providers can give a quote based on location and the type of house. Some areas are prone to expensive home insurance due to certain factors, including the type of neighborhood and potential natural disasters such as tornadoes, hurricanes, earthquakes, etc.
Know the Facts
Before shopping for homeowner's insurance, get to know everything about the home, from the age of the heating/air system and plumbing, to the integrity of the electrical work. Find out what type of construction materials were used in the building of your home. Knowing these facts is important...especially for an older home. Older homes can have fire hazards without your realizing it due to older appliances, electrical wiring, etc. The home insurance company will probably ask questions such as these to find out what type of risk is involved.
Buy Enough Homeowner's Insurance
Don't fall in a trap of being underinsured. Make sure you have enough coverage for your home, the loan pay-off with some interest, and your belongings. Insure your home based on the replacement value...not what you paid for it. You can often use the appraisal amount to come up with a good figure for coverage. Also, consider your belongings and what it would cost to buy them new again. Some items will likely cost much more than you originally paid due to inflation!
Deductibles
You have the option to select the deductible you want. The deductible is the amount you're willing to pay out of pocket before the provider must pay. A higher deductible will usually lower your overall premium, which is often very much worth the savings.
Home Tips
Keep your home secure and well maintained. A home security system can possibly lower your premium because it decreases risk of theft. Most insurers will require smoke alarms and carbon monoxide alarms to protect from fire. Have your appliances and electrical inspected ever so often to make sure everything's working properly.
Other Tips
Use online resources to make a homeowner's insurance comparison in your local area. Compare policies and rates to find the best one for your budget. Once you decide on a provider, be sure to research the company using rating sites and forums. Find out if there are complaints against the company. Read the policy carefully and make sure you fully understand the entire policy.
These tips can help you find affordable homeowner's insurance and get adequate coverage for many years to come!
When you hear the word "savings" your heart might sink at the thought...knowing you should have been saving all along. You want to make investments to secure your future and aid your retirement, but you just don't seem to have the extra money each month.
We're going to show you six practical ways to save as much as 25% of your salary every month for investments. But first, you'll need to calculate the amount to save based on your salary. Take your monthly salary (after taxes) and multiply it by 25%. If you earn $3,000 per month, this figure will be $750. Then figure the percentage by the week. This comes to about $173 per week. To get a weekly figure, simply multiply $750 by 12 (monts) and then divide by 52 (weeks). If you get paid monthly, you might want to save out the monthly amount all at once.
1. Budget for Savings
This is number one because without budgeting, you might as well not even think about saving money. Plan your budget based on living expenses, loans, insurance, medical expenses, etc. Then add a spot for savings to include in your budget. It's a simple way to commit yourself to save 25% of your salary each and every month. When you get a paycheck, put your savings into an account or stock first. Then plan other expenses based on what's left.
2. Be a Frugal Shopper
Make wise decisions about purchases by seeking out the best deals. Frugality can help you stay within budget after you've already taken out a savings amount. Use coupons, shop at thrift stores and yard sales, visit stores when huge sales are going on, and choose the cheaper restaurants when eating out. Avoid multiple trips to town to save on car gas and mileage.
3. Entertain Wisely
Many families spend hundreds of dollars per month on entertainment. Of course, you can't do away with family fun, but you can change how much money you spend on it. Look for creative, less expensive ways to have fun - visit a park, play board games, buy outdoor activity gear for your yard, take bike rides, or have a picnic.
4. Haggle for a Better Price
When shopping for big ticket items such as furniture, a vehicle or even a home, you should always haggle for a better price. This could save you thousands on the overall price as well as interest. Also, it will lower your monthly payment if financing so you can save more towards your investments.
5. Save Tax Refund
One way to jump start your savings each year is to save all or a part of your tax refund. Many people are overwhelmed with all the things they can buy with their tax refund. Put a healthy portion of your refund into your savings, money market account, stocks or IRA before you go on a spending spree!
6. Re-evaluate Your Household Bills
You'd be surprised at how much money goes out the window to needless spending. Re-evaluate your spending to find out where you can cut corners and save more. Consider your cable TV bill, phone bill (long distance in particular), utilities (energy saver appliances), a refinance of your home mortgage, extra fees such as ATM fees and late fees for movie rentals, etc. How can you change things today so you can save more tomorrow?
These are not the only ways to save for investments, but you can get a good head start with these six ideas. Saving 25% of your salary can help you build a substantial investment portfolio in just a short amount of time. Look for easy ways to save this amount and start building financial security for your future.
What if I told you that you can save up to hundreds of dollars a year just by maintaining and or improving your water systems at home? Sounds too good to be true doesn’t it. Well by applying a few of these simple tips, you can make a simple but powerful change in your life.
Install a more efficient shower head
With technology the way it is today, odds are your shower head is old and outdated. Visit your local hardware store and make the switch. They have long working lives, and the few bucks you spend on them now are returned back to you and then some over the long run.
Do laundry with full loads only
Allow yourself and your family to accumulate a full load before stuffing them into the wash. This cuts down on the frequency of washes you’ll have to perform and greatly reduce annual water consumption.
Reduce the length of showers
By reducing the length of your showers by a few minutes, the slight amount you save each time will add up over the course of a year, saving you a substantial amount annually.
Do not thaw frozen food with running water
Plan ahead of time and use your fridge to defrost. Don’t cost yourself money just to defrost your food.
Change car wash habits
Instead of washing it at home in the driveway, consider using a professional service that recycles water. Otherwise try washing your car on your lawn so the water doesn’t go to waste right after.
These are only a few of the myriad of possibilities. Remember to keep in mind that this not only puts more money in your pocket, but is also environmentally friendly. A penny saved is a penny earned!
Investments can help you increase income now and for the future. But how do you know which is the best type of investment for you? There are really no guarantees that any investment will bring a profit; however, you can use the same methods that many savvy investors use to minimize your risk and increase stability in your portfolio. Here are five investment ideas to consider. These are used faithfully by savvy investors to make the most of their investments and to secure a reliable income for retirement.
1. Stocks and Mutual Funds
Stocks are still popular for investments, but many smart investors are shying away from putting all their eggs in one basket. You've probably heard the term "diversify" a million and one times. This is a necessity in today's unstable stock market. Stocks can now be riskier than ever, so it's wise to make stock investments only a small percentage of your portfolio, especially if you're new to investing. Consider some short-term stocks and use any profits earned to re-invest in more stable venues. There are also mutual funds, which are multiple low-risk stock investments usually managed by a broker. Another type of stock is FOREX (foreign currency exchange), which can be even more risky than company stocks unless you really take the time to do research and learn how to trade wisely.
2. Bonds and CDs
Bonds and CDs (Certificates of Deposit) tend to be less risky than publicly traded stocks, and there are many types of bonds and CDs. Consider placing some of your funds in short-term CDs and a lower percentage of money in long-term bonds. Bonds can yield a greater return for the future, but you'll have to wait longer to get your money - usually 10 to 30 years. CDs, however, can be withdrawn within several months up to two years.
Bonds are basically "cash loans" to corporations or the government, which are promised to be paid back with interest over so many years. The lowest paying bonds (with the least amount of risk) are U.S. Treasury Bonds, which are backed by the U.S. government. CDs are actually deposit accounts that will mature within a set amount of months. You'll invest a fixed amount such as $1,000 and then receive the money back plus accrued interest.
3. IRA
An IRA (individual retirement account) can serve as a great method to save for retirement. Most large companies will invest all or a portion of your 401K savings into an IRA when you leave the company. IRAs are popular due to the numerous tax benefits for retirees.
4. Specialty Sectors
Another way to diversify is by investing in certain specialty sectors. These include real estate (land, condo, second home, rental properties, commercial properties, etc.), precious metals (gold and silver), natural resources, materials and foreign securities. There are also mutual funds available for specialty investments. These investments should be approached with caution and much research, but can prove to be very lucrative for the long-term.
5. Personal Investments
Use your passions to invest for the future. What is your favorite hobby or collectible? Do you collect classic cars, coins, fine art, sports memorabilia, or other items? Consider investing now in a hobby or business you love so you can spend your golden years enjoying it. A good example would be a retiree that has purchased and restored several classic cars. He can eventually sell one or two of the cars for profit and use the other car to attend his favorite car shows. He might even start a classic car club in his local area. There are many ways to enjoy classic cars while getting a return on his investment.
Before making any investment, consider where you would like to be 20, 30 or 40 years from now. Do you need short-term profits, money for retirement or both? Every investment you make should help you reach certain goals. Use these five strategies to make smart and safe money decisions.
One way to be a smart shopper is to stock up on food items when your local grocer is having a huge sale. If items are half price, you can get twice as much food for your bucks! But another approach to food savings is to buy in bulk at warehouse type stores such as Sam's Club and Costco. Stores such as these usually require a yearly membership fee to shop, but the savings can be significant if you use your membership wisely. Let's look at the good and bad of buying food in bulk.
Benefits of Bulk Buying
Buying food in bulk enables you to stock up on food items that you will use in the future. You'll basically be buying in quantity, similar to how retailers buy items before selling them to the public. You'll enjoy wholesale or near-wholesale pricing on some items. The price of the larger quantity can be significantly less than the price of buying the items individually or in lesser quantities. Having a bulk store membership also makes it easy to buy food for parties or family gatherings when you need to buy in large quantities.
You'll spend a little more up front by buying in bulk, but will enjoy savings on your overall monthly grocery bill. If you remain disciplined with your spending, you'll end up spending less than ever on your usual trips to the grocery store. Many shoppers visit a bulk store about once a month to stock up on items that can easily be stored for future use (i.e. meats, canned goods, juice, dry beans, laundry detergent, toilet paper, etc.).
Disadvantages
If you're not careful you can end up spending more than you were spending before while at the bulk store. It's easy to grab everything you see just because the items are discounted and bulked together. You might grab things you don't need just because it seems to be a good deal. Keep in mind that it's only a good deal if you actually use the item. Another drawback is bulk stores offer other items besides just food and the usual commodities. You'll be tempted by isle after isle of inexpensive electronics, toys, etc., so it's a good idea to block all that out and concentrate only on your grocery shopping list.
Another disadvantage for many people is that the nearest bulk discount store is located in another city, perhaps an hour or two away. This means a shopper must take several hours out of the day and use up fuel to get there. Yet another reason to visit only once a month and stock up!
Tips:
- Do calculations for your regular groceries and bulk groceries before buying to make sure you are actually saving money.
- Make a list before going.
- Eat a meal before shopping so you're not tempted to buy more.
- Buy a freezer so you can stock up on meats and frozen goods.
- Buy a canning machine if you plan to buy fresh vegetables in bulk.
- Only buy what you know your family will use in the near future.
Buying food in bulk is a great way to save money and keep your cabinets and refrigerator stocked with delicious food. Use these tips to get started!
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