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Money Saving Tips

30 Unique Money Saving Tips – Try it now!!

Worrying about money can be stressful. If you regularly find yourself spending more than you earn then it’s probably time to reassess your outgoings and think of some ways to cut back. Looking for some easy and unusual ways to save money?

personal finance tips

Here are 30 unique money saving tips to help you cut your costs of living and put some money to one side:

1. Say No to Your Car!

Walk and bike wherever possible: not only are walking and cycling both excellent forms of exercise, there are no real costs involved. You won’t have to pay for gasoline or any motoring maintenance charges, and you might even find you enjoy it so much you could get rid of your car completely!

2. Car Pool

Not practical to live life without your car? Then why not car pool instead! The average American commuter spends in excess of $1,000 on gas every year just by driving to and from the office. If you carpool with just one client, you can cut this bill in half: find two colleagues to carpool with and your annual gas costs could drop by a third.

3. Lights Out!

When you leave a room, remember to turn out the lights. This simple tip will have almost no impact on your life, but will have a significant impact on your energy bill!

4. Unplug Your TV

When you’re not using your TV and any other electrical appliance, be sure to turn it off at the mains switch. Leaving these items in standby mode will drain your power, increasing your electricity bill unnecessarily every month.

5. Cancel Your Cable

On the subject of turning away from the TV, did you know that if you cancel your cable subscription, you could save up to $500 per year?

6. Switch Your Insurance Provider

If you haven’t switched your insurance providers recently then it is highly likely that you can save money on your car insurance, home insurance, and travel insurance. Switching is surprisingly easy and won’t take as long as you might think: Check around for the best prices, make a few phone calls, and let your new insurance company do the rest!

7. Choose to Quit

If you’re a smoker then use the money you’ll save as your motivation to quit. Smoking is an expensive habit: the average smoker spends around $2,000 a year on cigarettes; money you could put to better use.

8. Cut Down Your Alcohol Intake

On the subject of bad habits, cutting down how much alcohol you consume (particularly at retail prices in pubs and bars) will help you to make significant savings.

9.Find a Happy Hour

Not prepared to give up cocktails with your friends? Find a happy hour where drink specials are available instead.

10. Work Out Online

Give up your monthly gym membership and instead find an online aerobics or yoga program to follow. This will give you all of the health benefits without any of the expense, and you can exercise from the comfort of your own home!

11. Pile on The Blankets

Feeling the cold? Don’t turn up your thermostat – instead reach for a cozy blanket and snuggle on the sofa. This will save you money whilst still keeping you warm.

12. Buy Energy Efficient Lightbulbs

Although they may be more expensive than regular lightbulbs in the hardware store, energy efficient lightbulbs are so effective that they will save you money in the long run.

13. Make Your Own Greeting Cards

Birthdays, weddings, Hanukah, Christmas, the celebrations never end! Store bought cards can be expensive, so instead start making your own greetings cards using card stock and imagination instead. As an added bonus, homemade cards are thoughtful and usually much more well-received!

14. Make Your Own Gifts

Gifting can also be pricey. If you have any special skills (such as baking or painting) then why not utilise these to make thoughtful handmade gifts instead?

15. Get a Library Card

Love to read? You don’t ever need to spend money on your hobby again! Get a library card and read whatever you want, whenever you want!

16. Check The Labels

When shopping for clothes, always check the care labels. Avoid anything that needs to be dry cleaned or any other kind of special care. These can be pricey to maintain and will add to your monthly cleaning budget.

17. Shop Your Closet

Before you hit the shops, sort through your closet. Most of us have pieces tucked away at the back that we have never worn: try everything on, and shop your existing pieces for an outfit that you can breathe new life into.

18. Cut Your Own Hair

Cutting your own hair isn’t complicated, but learning how will save you a fortune in pricey hair cuts. This is doubly true if you have children: their hair grows so fast that cutting it yourself will save you a lot of money in the salon each month.

19. Or Get it Cut For Free

If you don’t like the idea of cutting your own hair then instead search online for your beauty school; they are often looking for models and will cut your hair for either a donation or for free.

20. Washing in Cold Water

The most costly part of cleaning your clothes is turning up the temperature on your washing machine. If your clothes are only lightly soiled then wash them in cold water and reap the savings instead!

21. Leave Your Wallet at Home

Heading out for a run or a walk? Leave your wallet at home! If you don’t have any cash with you then you won’t be tempted to stop and spend it on a coffee, or another reward, on your way home.

22. Make The Most of Reward Cards

Sign up for reward cards for all your favourite cards, and make the most of them: keep track of when they are offering double points, for example. Saving points on your rewards card can ultimately save you money on the everyday things you need (and the occasional treat that you don’t!)

23. Save Your Black Bananas

Bananas looking black, bruised, and sorry for themselves? Don’t throw them away! Save money by turning them into delicious banana bread or freezing them to use up when you need them in fruit smoothies.

24. Pack Your Lunch

Taking lunch with you will save you a fortune! Whether you’re going to the office, heading out for a trip to the zoo, or spending time on the beach, taking lunch with you from home will save you a small fortune on convenience food when you’re out and about.

25. Shop With a Friend

Like the sound of that buy one get one free offer but don’t need double the product? Instead shop with a friend and get the amount you actually need for half the price.

26. Shop the Sales

Do you need to buy something new? Perhaps your toaster has broken or you’re looking for new shoes. Whatever you’re looking for, wait for the sales to begin before you start shopping. Savvy money savers never buy anything full price!

27. Grow Your Own!

Do you like to eat plenty of veggies, fruit and salad? Why not try to grow your own! Not only will it save you money, it will also taste better, and there is nothing more satisfying than eating something you have grown yourself.

28. Buy in Bulk

When shopping for non-perishable products (such as deodorant or washing powder) why not check if you will get a better deal for buying in bulk? Unit prices are often cheaper, and you can simply store the excess until you need it.

29. Drink More Water

Not only is soda bad for you, it’s also expensive! Say no to pricey sodas and juices and drink more water instead. Your skin will be as happy as your bank balance.

30. Cook in Bulk

Finally, when you’re cooking double the values of your recipe to make a larger batch that you can portion and freeze. Not only will this save you food prep time, it will also save you money on buying smaller quantities of ingredients and the energy costs involved in running your oven.

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Personal Finance

The Best Personal Finance Tips and Tricks to Manage Your Finance (Part-2)

What made them millionaires? 

#41 Your time is more precious than money!

Spend your time productively and make the best use of every minute to look for ways to earn more.

#42 A passive income options

It is good to look for a passive income options apart from your regular job. Turn your hobby into a source of income.

#43 Multi-jobs can make you multi-millionaire

A secret to become millionaire is look for do multiple jobs, may be part-times jobs after work, work-from-home options etc.

#44 Tone your body and finance down

A fit body can bring creative thoughts to handle finances. Spend some time to exercise and sometimes take part in marathons as well.

#45 Appreciate what you have

Learn to appreciate what you have and get contented.

#46 Recycle to save more

Try all possible means of recycling the things before you opt for buying a new one.

#47 Get a money buddy

Look for a buddy who shares same traits as you; so that you can discuss your finances and get ideas as well.

personal finance tips

Boost your current earning potential

#48 Let employers name the figures

Let the new employer quote the salary first so that you get the idea of how much you can push it.

#49 Little extra from salary

Negotiate with the future employer on paid leaves, work hours, vacation time etc apart from your salary.

#50 You are susceptible to Unemployment

When the recession is at peak, unemployment can knock anyone’s door.

#51 Make Salary Discussions at Your Current Job About Your Company’s Needs

If you are need of extra money then try negotiating for hike or bonus based on the value you add to the company rather than putting forth your personal needs.

Special points for students

#52 FAFSA – for every student

It’s no harm in filling the form. Don’t miss out any opportunity that can get you grants.

#53 Opt for federal student loans over private loans

Federal student loans have flexible payment terms and better interest rates.

#54 Look for repayment options in federal loans

If you’re struggling with federal student loans, then ask your lender if they offer extended or income-based plans.

#55 Grab student discounts everywhere

The best thing for a student is the discounts in everything be it a movie, a salon or loan. Try to grab every possible deal.

#56 Pay per use

What is the point of spending $40 on a T-shirt when you can get one for $5? Pay as per the use of the product rather than wasting money on expensive stuffs.

#57 Learn from experiences not things

Spend time and money on concerts, meet-ups, conferences and shows rather than just buy things. You can learn a lot from these experiences.

#58 Overdraft protection – ditch it

Don’t fall in this trap laid by banks, to make you overspend and then make you pay for the privilege.

Planning ahead for retirement phase

#59 Your time starts now

Start today to put money for your retirement needs as it is going to take long to grow and yield results.

#60  A bulletproof retirement plan

Make a plan for your retirement with the exact figures starting from how much you need to save on a monthly basis to all the policies you need to invest on.

#61  Try not to cash out your retirement account early

There are many reasons for this: penalty for early withdrawal, a tax bill for what you withdraw and finally after all your hard work, the money is not even invested.

#62 The give & get option

The 401(k) match is when your employer contributes money to your retirement account but for that you need to contribute first.

#63 Hike- for the retirement savings as well

Every hike or increment you get, add it in your savings as well. An increase in your income should be an increase in retirement contributions.

#64 Knowledge is power!

It is important to read and learn from every source, the possible options that can fill your retirement needs. Keep track of the changes in policies, different retirement accounts and market trends for more savings.

#65 Go for 401(k)

You get enrolled for 401(k) once you get hired by any employer. This account holds the money directly from your paycheck and sometimes the employer contributes the same amount as well (termed as matching).

#66 Opting for traditional IRA

This is set up so that your contribution each year is tax deductable and you aren’t taxed on the income you make as it grows.

#67 Roth IRA – an additional way

In this you pay the taxes upfront at today’s tax rates and the best thing is , you don’t have to pay taxes on your investment earnings.

#68 The fourth option

Apart from the usual retirement account options, there is an option of non-deductible traditional IRA.

Credit the must watch thing!

#69 Keep an eye on your credit score!

Monitor and know your credit score as it would determine what kind of credit cards you’ll get approved for and how expensive your mortgage or car loan would be.

#70 Review the usage

You need to track down your credit usage and review it so that you know how much you spend.

#71 Use 30 out of the total credit

It is going to affect your credit score if you spend more than 30% of your total available credit.

#72 Have a bad credit, go for a secured one!

A secured credit card has the benefit that it will not let you overspend and will help you build credit as well.

The perfect way to get insured!

#73 Look for more, apart from your company’s policy!

Mostly, the basic policy from the employer will not cover all your needs. So, it’s better to look for more policies.

#74 Plan B- Renters insurance

This plan B can save you when there is a robbery, a natural disaster, a medical coverage if someone got hurt at your place, a rented apartment for a temporary stay in case of any damage in your apartment etc.

#75 Short-term insurance policies

The annual renewable term gives you 1 year of coverage and you can renew it every year. But there are chances that the figures vary every year.

#76 Long-term insurance policies

A level premium term lets you lock the premium for a particular period may be 5 years. This is a smart option to insulate you from any premium increases.

#77 Allocate time to read the insurance terms & conditions!

It is very much important to read what the insurance policy covers before you opt for one so that you get the maximum benefit.

Get grooving for those rainy (financial) days

#78 Savings- a part of your monthly budget

When there is an extra flow or not, it is better to set savings as a part of your monthly budget.

#79 Separate savings from the checking out

If you have savings in your checking out, you will never actually save it. Instead you will end up spending it on your regular expenses without actually knowing.

#80 Different banks for checking account & savings account!

It is good to open a savings account in a different bank as there is no chance that it gets mixed up between accounts.

#81 Opt for direct deposit

It feels great to see your savings grow apart from what you have in your checking account. Although it comes from your paycheck, but going for a direct deposit will leave no chances of missing it.

#82 Switch to Credit union if required!

It may not be an option for everyone unless you’re looking for kinder loans, better customer service & better interest rates on savings account.

#83 Be prepared for the 3 worst-case scenarios!

It is good to be financially prepared for these 3 emergencies:

  • A medical emergency or a sudden travel for a funeral
  • Fired from your job
  • Home or car repair

#84 The Richie-Rich’s savings

Who would not love to have savings like Richie Rich? Too much of savings is not bad at all. When you feel you have saved too much, go for investing it.                             

The smart way of investing

#85 When is the right time to invest?

You might be thinking of this for sure. When you have some extra flow of money & you have saved enough then it is good to plan on investing. A wise move is to make the best out of every extra dollar you earn.

#86 The right investment option

You don’t have to be an expert about personal finance to make the right investment. Instead of purchasing items that will out-grow or become useless once old, put money on things that can become an investment.

#87 Look for different investment options

Based on the money you can invest, opt from the various options like stocks, bonds etc.

#88  Pay attention to expense ratios!

Watch out! The fees you pay for your funds can crib on your returns so opt for low-cost index funds.

#89 Re-balance your port folio every year

Keep a check on your brokerage account every year to see if you investment allocations still match your goals.

#90 Be prepared: It might take long to save up a down payment

Before you plan to buy a house, you should be financially stable. Don’t be in a rush if you can’t handle the down payment.

Few more additional finance tips

#91 How your significant other handles finance?

Yes, this is an essential factor that would decide on your future goals and how you save for it together. Discuss and know more from him/her.

#92 Find a good tax accountant

Your financial situation decides if you can DIY your tax filing or hire someone to do it. Be sure you find the right person to do it.

#93 Where your parents stand financially?

You will feel great once you have this conversation with your parents. They are the one who stood by you in every situation and took care of you. You should be aware of their situation as well and help if needed.

#94 Know your money personality

Do a self check on how you handle your money to know is you’re: the budget-buster, the pleaser or the protector.

#95 Manage your budget-busting friends

In 20s hanging out with friends and spending will seem cool but if you drag the same in your 30s or 40s, it’s going to make you hurt in future savings.

#96 Did you know the truth about other people’s finance?

Don’t fall in the trap to try the same; the co-worker with great clothes might be struggling with huge debts. Don’t opt to do things just because someone else is doing it.

#97 The big cost of your little splurges

Once you start handling your finance well, you will realize that every $2 coffee can add-up to a huge at the end of the month and become a hurdle in your finance goals.

#98 Socially responsible investing

Giving charity is here & there is good; but it makes a difference when you do it the right way.

#99 Your favorite under $10 dinner      

Everyone has a signature dish, what’s yours? It’s good to go out occasionally if it doesn’t affect you bank balance.

#100 Do you need a will?

There are 2 types of wills: a last will (or testament) & a living will. A last will is a legal document that will spell out what happens to your possessions when you die. A living will is health care directive for what should happen to you if you’re unable to communicate your wishes. And you need both!

Categories
Investment

Top 5 Personal Finance Rules for Millennial Investors

If you’re like me, you’re a Millennial who’s been pretty good at saving. Unfortunately, if you’re like me, you’ve also been holding onto that money in a bank account or under your mattress, instead of making that money work for you.

Investing is an intimidating idea for many, especially if they lived through the havoc wreaked by the 2008 recession. In fact, according to a Harris poll from last year, 80 percent of Millennials aren’t invested in the stock market at all. The one thing Millennials have been good at putting money into? Their 401(k) plans, according to a study by Vanguard.

Nevertheless, Millennials are beginning to enter their prime earning years, and if the only thing stopping them from investing is fear of the unknown, they’re making a potentially expensive mistake.

Personal Finance Rules for Millennial Investors

Here are the top 5 personal finance rules for Millennial investors.

Learn the Lingo

This advice holds true for whatever unknown you’re getting into. If you don’t know how to talk about investments, how will you ever be able to actually invest? Here are a couple of terms for you to start off with:

  • Assets and Asset Allocation: An asset is simply something that has the potential to earn you money. Assets can include cash (usually in the form of certificates of deposit, treasury bills, or money market accounts), stocks, bonds, commodities, or real estates. Asset allocation is simply how you’ve divided your assets, or your investment strategy. By choosing investments in different sectors, industries, and geographic locations, you’ll build up a diversified portfolio where your risk is spread out.
  • Ask and Bid: An “ask” is the lowest price that an owner of an asset is willing to sell it for. A “bid” is the highest price a buyer is willing to lay down on an investment. Nowadays, these asks and bids are often matched up on electronic platforms and exchanges.
  • Bull and Bear Market: A bull market is a market that is trending up, and that your investments are likely to grow in. If you are “bullish” or considered “a bull” that means you think the stock price will rise. A bear market is the opposite, when the market is trending downward, and a “bear” or “bearish” person is somebody who believes stock prices will drop.
  • Capital Gains and Losses: Capital gains or losses are the difference between what you buy an investment for and what you sell it for. If you incur a capital gain, you’ll be subject to taxation, while capital losses can be written off. Most investments mature over a long period of time, and long-term investments are subject to different capital gains taxes than short-term investments–more information on that here.
  • Dividends: In some cases, a company will offer some of its income to be divided amongst shareholders. Dividends are oftentimes paid regularly–monthly, quarterly, semi-annually, or annually–but sometimes are offered as a one-time incentive.
  • Exchange: An exchange is a place where investments and assets are traded, bought, and sold. Some of the more famous stock exchanges are the New York Stock Exchange (NYSE) and the NASDAQ. Exchanges aren’t necessarily located in physical locations nowadays, as many exist online.
  • Yield: Yield is the ratio between stock prices and the dividends paid on those stocks. So let’s say you buy a certain amount of stock at $100 per share, with a dividend that ends up netting you $10 extra per year. This would amount to a 10 percent yield.

For even more beginner terms, you can check out this post by Miranda Marquit.

Learn the Principles

According to Benjamin Graham, the mentor to one of the most successful investors of all time, Warren Buffett, there are tactics and principles to investing that one should follow. His ideas are recorded in his books “Security Analysis” (1934) and “The Intelligent Investor” (1949), and have been distilled by Investopedia into three principles.

  • Principle #1: Always Invest With a Margin of Safety – The idea of a “margin of safety” boils down to purchasing an asset at a significant discount to its intrinsic value. This allows you to make fewer risky investments but still enjoy higher returns.
  • Principle #2: Expect Volatility and Profit From It – Every market is volatile to some degree, and you may be hesitant to hold on to assets that seem to be tanking in value. However, the investor who lets their emotions (instead of their logic) control their actions is begging to lose money. Graham’s strategies for mitigating the unwanted effects of volatility are dollar-cost averaging and making investments in stocks and bonds.
  • Principle #3: Know What Kind of Investor You Are – You need to decide whether you’ll be an active or a passive investor (or “enterprising” vs “defensive” investor). The only difference is how involved you want to be with asset selection. If you do decide to be active, you might want to decide between “speculating” vs. “investing”.

Drop Your Bad Financial Habits

Beginning to invest represents adopting good financial habits, but it doesn’t necessarily indicate that you’ve dropped the old, bad ones. At the very least you have some money to invest–but are you maximizing your financial potential? Chelsy Meyer writing for Fiscal Tiger mentions that five of the most common bad habits are:

  1. Paying Bills Late
  2. Ignoring Debt
  3. Overspending
  4. Spending Incorrectly
  5. Not Saving

This is obviously not an extensive list of bad financial habits, but all or a mixture of any of these are correctable and will benefit you in the long run. Nobody is perfect, and some people might miss a credit card payment here or there–but realize that these bad habits snowball. Nip them in the bud and your future self will thank you for it later.

Learn to Take Risks

This goes along with the principle of expecting volatility. Think of it this way: every time you get on a plane, you take a calculated risk. You realize that there’s a certain degree of danger and excitement, but the first sign of turbulence doesn’t make us jump out with a parachute, does it? No, we wait out the ride because we need to get where we’re going. Or here’s another one: many of us lived through the real estate crash in 2008. Does that mean that none of us are going to buy homes, or invest in real estate ever again? No–especially after you realize that real estate investing doesn’t actually require as much money to get into as you think.

Sure, it’s important to be cautious. Some people have bet the farm and lost. However, with the right asset diversification, information, and education, you can learn how to weather those risks and end up on the other side profitable. In fact, Arielle O’Shea’s article “5 Essential Investing Moves for Millennials” published via Forbes lists “say hello to risk” as its second move. “Risk is kind of like that friend who regularly cancels plans but always comes through in a pinch,” she writes. “There might be heartache in the day-to-day, but in the long run, you’ll be glad you stuck it out.”

It’s OK to Invest With Your Head AND Your Heart

Millennials simply think about personal finance differently. Writing for LendKey, Dave Rathmanner mentions that Millennials are characterized by a desire to make ethical financial decisions–not just profitable ones.

“In a recent survey on ethical investing, over 85 percent of millennials said that they were interested in engaging in this type of investing,” he writes, referring to the latest, annual U.S. Trust Insights on Wealth and Worth Survey. “That means that millennials would rather prioritize investing in companies that do good and are socially responsible than those that focus solely on creating the largest return for investors.”

Wall Street is beginning to cater to this trend in a bid to court more Millennial investors. Stick to your moral guns, and remember: a bed made of silk and gold is worthless if you can’t sleep at night.

These are the top five rules for Millennial investors, but they’re definitely not the only ones. If you think we forgot something or have an interesting tip to add yourself, mention it in the comments below.

Andrew Heikkila is a business and tech writer with a passion for running long distances and drinking long yards. When he’s not doing either of these, he’s running his entertainment company or spending time with his spouse. Follow him on Twitter @AndyO_TheHammer

Categories
Debt Advice

How Can You Keep Your Property and Eliminate Debt in Personal Bankruptcy?

The United States Constitution gives you the ability to eliminate your debts when your financial obligations become too much to bear.  Depending on your  situation, you can seek financial relief under these two types of personal bankruptcy: Chapter 7 and Chapter 13.  Both options allow you to keep your property but with certain conditions.

eliminate debt

Chapter 7 Bankruptcy

Chapter 7 bankruptcy provides financial relief by eliminating all or a portion of your debts.  Most types of unsecured debt (such as credit card and medical bills) are discharged in Chapter 7.  In a Chapter 7 bankruptcy case, the court treats your assets as potential means of repaying your debts.  When you file for bankruptcy, all your assets become part of the bankruptcy estate.

Exempt and Nonexempt Assets

There are certain types of assets that are exempt from being sold to pay back your creditors, while some types of assets are not exempt.  The assets that can be sold are referred to as nonexempt assets.  The bankruptcy trustee is going to sell a nonexempt property with significant value.

Assets that you have to give up include:

  • A second house
  • A second vehicle
  • Heirlooms
  • Cash and investments
  • Valuable collections

Assets that you can keep include:

  • Pensions
  • A portion of home equity
  • Vehicles up to a certain amount
  • Household appliances

Many individuals who filed for Chapter 7 bankruptcy are able to retain possession of all or most of their assets.  But those who own substantial equity or assets that are nonexempt could lose them to pay back creditors.

When you complete the Chapter 7 bankruptcy all your debts are discharged with the exemption of non-dischargeable debts, such as student loans and child support.

Chapter 13 Bankruptcy

You can protect your secured assets from creditors and bankruptcy trustee in Chapter 13 bankruptcy.  However, you will have to continue paying your secured debts and pay off arrears.

Chapter 13 bankruptcy prevents creditors from taking away your property to pay your obligations to them.  But if you own assets that are considered as nonexempt, you will likely be required to repay a bigger amount of your unsecured debts under a repayment plan in Chapter 13 bankruptcy.  Moreover, you can only keep your assets if you keep up with your secured debt payments or pay all of them in your plan.

Even Nonexempt Assets are Protected in Chapter 13 Bankruptcy

Your nonexempt assets are not used to pay your creditors in Chapter 13 bankruptcy.  On the contrary, the Chapter 7 bankruptcy trustee will liquidate your nonexempt assets.  In exchange for allowing you to retain possession of all your assets, you repay all or some of your obligations through a court-approved repayment plan.

Your Assets Affect How Much Debt You Should Repay

Some of your debts will have to be paid in full in your Chapter repayment plan.  Examples of these are unpaid mortgage and certain types of taxes.  But the exact amount of unsecured debts (like credit cards and medical bills) to be paid depends on your nonexempt assets, expenses and income.  Nevertheless, that amount is often much less than your outstanding balance.

You Can Catch Up on Unpaid Secured Payments and Keep the Secured Property

If you used a certain asset as security for a loan, you have a secured debt.  And if you miss payments on your secured loan, your lender can repossess or foreclosure that property.  Examples of secured debts are car loan and home mortgage.

Chapter 13 bankruptcy can stop foreclosure  or repossession of your secured property and allow you to pay your arrears through an affordable repayment plan.  As you catch up on your payments, the automatic stay blocks creditors from taking away your property.

You Have to Keep Up with Your Secured Debt Payments

To keep your property, you must also pay your the ongoing payables on your secured debts.  Your unpaid mortgage bills have to be paid off through your repayment plan in Chapter 13 bankruptcy.  But regardless if you have arrears, you must continue paying your regular payments.  If not, your mortgage lender will seek to remove the automatic stay on your debt and proceed with the foreclosure process if allowed by a bankruptcy judge.

In contrast to a mortgage debt, you may have an option to pay off your other secured debts through your repayment plan.

Whether or not you exclude your secured personal property in your Chapter 13 filing, you need to make sure that you pay your lender on time.  Otherwise, you risk losing that property.  The lender could repossess or ask the court to lift the automatic stay on that property.

At the end of your Chapter 13 bankruptcy, the court will discharge most of your debts.

Ask Help from a Legal Expert

Filing for bankruptcy is a very important decision.  A skilled bankruptcy attorney can help you explore your options and create a viable game plan to protect and retain your assets in a bankruptcy case.

Jarmela writes bankruptcy blog posts to make it easier for people to understand how filing for bankruptcy can provide them with financial relief and ultimately a fresh start. She has been a writer and marketer for a legal advertising team of a Texas lawyer since 2011. When she’s not writing, she is reading bankruptcy news articles to keep herself abreast of the new applications of the U.S. bankruptcy law.

Categories
Car Insurance

Easy & Interesting Ways to Save Money on Car Insurance

Safe driving can save a lot of money on your car insurance. As many insurance firms reward great discounts to good drivers. Drivers are expected to have some amount of auto insurance in most of the states. But it feels like a burden to save some dollars for auto insurance when you are planning to cut down your expenses. There are ways to reduce the car insurance amount and still comply with the law of the states.

Save Money on Car Insurance

In this article, we give you easy and interesting ways to save money on car insurance and stay within the safe coverage limit to protect your finances. The cost of the auto insurance varies with the type of car and with the driver.

What is covered under Auto Insurance?

It is important to understand what is covered under the basic auto insurance policy before you plan your savings.

  • Collision coverage: Covers the amount for repairing your vehicle when there is any accident with another car even if it’s your fault.
  • Property damage coverage: Covers the amount for damage caused by you to others car or property such as fence, building, mailbox etc.
  • Bodily injury liability coverage: Covers the amount for the injuries caused to someone else.
  • Comprehensive coverage: Reimburse loss occurred due to any other event like fire, flood, hail, vandalism or hitting an animal.
  • Medical payments or personal injury protection (PIP) coverage: Covers the amount for the injuries caused by an accident to you or the co-passengers of the vehicle.
  • Uninsured and underinsured motorist coverage: Covers the loss incurred due to accident with a driver who doesn’t have an auto insurance.

The Essential Tips:

Tip 1: Understand the insurance needs and assess

Once you glance through the details of what is covered under auto insurance then you can choose which coverage can be beneficial to you. It is very much essential to carefully assess your insurance needs. For instance, if you don’t have enough amount to suffice the amount to repair or replace your car on the event of any accident then you would surely require collision and comprehensive coverage.

Every driver on the road will need liability and injury coverage to protect himself when sued for inflicting personal or property damage. The amount of liability and injury coverage is usually determined by both State and Individual requirements. For example, in, your insurance must pay up to:

  • $10,000 to cover medical costs for each individual injured, or up to a $20,000 limit per accident
  • $10,000 for property damage liability
  • $10,000 for personal injury protection per person

The ground rules of a liability insurance, it should cover the personnel from major lawsuits and provide a financial liability safety net. The assessment of an insurance should be made in such a way that it protects oneself and gives wider coverage on occasion of need.

Tip 2: Keep your credit rating and driving records clean.

The credit rating of a personnel usually determines the amount premium charged on an individual. An individual with a better credit rating might be charged less compared to the one with poor credit rating. This is another reason to pay all your bills on time to get a price on your insurance coverage. Most insurers sought to credit scores to determine the premium amounts.

Safe driving is good for health as well for your insurance premium. Cleaner driving records lower the premiums. Having demerit points on multiple occasions generally costs you higher insurance premiums.

Tip 3: Raise the bar on Deductible

Deductible generally refers to the amount paid before the insurance coverages kicks in. The rule of thumb is keep your deductibles high so that the insurance premiums are low.  The bottleneck of having higher deductible is that, when an accident happens, most of the repair cost must be paid from the pocket.  So never raise your deductible if you are not confident of safe driving or if you don’t have enough cash to cover the accident costs.

Tip 4: Check for Discounts

Most of the insurance companies offer a wide variety of discounts to its customers. They don’t advertise about the discounts on open platforms. You must do your research and enquire the insurer about the various discounts offered. Most companies offer discounts if you purchase different kinds of insurance from the same insurer like auto and rental insurances. They also offer discounts when:

  • You have a clean driving record.
  • When you a serving or have served the armed forces
  • When you a student with higher grades
  • When you complete defensive driving or accident prevention course.
  • When you are a doctor, engineer or a professor.
  • When your car has safety features like anti-lock brake and airbags.

Tip 5: Update insurance policies

The most important step in reducing the liability claims is to update your insurance policies on a regular basis. If you have not spent on insurance claims, it is better to start now.

Compare the insurance costs offered by other providers before you choose an insurance policy. There are many online platforms which help you in comparing the quotes from various providers.

To conclude, there are a lot of opportunities to save money on insurance claims, being wise and update can protect you from liability claims as well help you in saving insurance investments. Let us be aware of the insurance discounts and use it to the fullest at the time of need.