Category: Finance

FinanceGuideMoneyWallet

Blow The Rent: When Your Wallet Is Worth More Than You

JonWritten by:

Each month, I fork out the tuition to learn what will make me so cool on stage and what will get me a members-only pass with the “in-crowd” at the after-hours party. I know that emulating the fashion magazines are purely a numbers game, and after so many trips to Bloomingdale’s, I am bound to buy the one coveted item that is this season’s jackpot of everyone’s envy. It doesn’t matter if I don’t have the cash, I can always charge it or better yet, call up Joey’s loan company and “float” a check until my next payday. If my shoes don’t get noticed, at least I am up to date on who is dorking who and why so-and-so was voted off or fired during prime-time television.

Flipping through the magazines cover to cover is never less than a mixture of scandal and seduction. This is the moment to live vicariously through idolized celebrities while at the same time enjoying a whirlwind courtship with the magazine’s senior editor. The inside headlines strung across the pages are always captivating me like a deer caught in headlights: He can’t buy you this bustier – sleep with your boss for a bonus!Everyone is wearing this diamond tennis necklace – sell your kidney!If you can’t afford this dress – blow your Manhattan rent!

As do most young glamorous people, I break down, literally at times since I would rather pay for a new Rolex watch than get a flu shot, and rush to the stores to pilfer through the racks of designer shoes, coats, dresses and accessories. Last year, I found on sale and couldn’t resist splurging on myself since I do deserve it – a $1,000 Gucci wallet that was made in Italy from genuine leather. The deep darkness of the raw umber made my mouth water each time I looked at it, recalling the delicious taste of rich chocolate. Oh, the waft of burnt cowhide against my nose was breathtaking and took me on a quantum trip to a brand-new car with leather interior. The stitches that held the wallet together felt like the softest baby skin underneath my fingertips. This was worth every penny of the five hundred percent interest loan that I needed to take out to buy this wallet fresh from the haute-couture slaughterhouse.

The glitz soon wore off and I found myself spending eight long months staring at that wallet while my eyes were popping out from my head. I should have spent the money on an eye exam and new lenses but if you really want something extraordinary, you must sacrifice. Day and night I ogled it hoping to understand the meaning of having a wallet that had more value than my personal net worth. Here in my hand, I am holding the world’s most beautifully constructed wallet made from the finest Italian ingredients. The fashion’s attention to detail was meticulous yet it puzzled me as to what its purpose is.

It looked good in the magazine with the Benjamin bills sticking out of it as I used my mind’s eye to imagine it being in my pocket. The horizontal slits of the wallet in the advertisement held gold, platinum and silver credit cards next to the model’s driver’s license mug shot that was nothing less than a museum piece. I was maxed out in debt from buying it so there wasn’t any actual money that I could put into the pouch. My ocean of multi-colored Capital One and Orchard Bank credit cards just didn’t do any justice to the wallet’s high-fashion class of luxury. For a moment, I started to feel as if for once a magazine had duped me until I realized there are creative ways for a broke person to use an expensive genuine leather wallet.

 

Use it like Granny’s coupon clutch.

Throw out that old, tired accordion coupon sorter with the rubber band around it and store them in the expensive leather wallet. Studies show that a lot of married people “bumped” into each other in the supermarket aisle. This is the place to show a potential mate that you’re not only a high roller but also a smart shopper.

Use the wallet as bait to waive down a taxi or leave it on the bar to get better service.

It helps if you have a one hundred dollar bill sticking out of the wallet so that the driver or bar tender will know you’re a big spender. If you’re tapped out, you can always borrow the money from your friends and family. It would be well worth the investment if you can get by on enough good looks where the drinks will keep coming all night from the single party at the next table.

Use it to store your bus pass.

Flashing the expensive leather wallet to the bus driver makes for a great conversation piece since everyone will ask how long your sports car has been in the shop. As the most to-die-for passenger during the dreaded trek through the city make sure you flash your wares to keep up the illusion of wealth. This is to show off how much of an impressive life you really have while you’re being squashed up against someone’s sweaty armpit. This will give them a lesson that success is all about going to work with deodorant. The slim wallet will have ample space for storing of the necessary things with safety. It eliminates the need of carrying a separate bag for storing of the bus pass or deodorants.

FinanceGuideLoan

Better Manage Your Student Loans

JonWritten by:

Going to college is a great opportunity to broaden your horizons and add to your resume. However, it is often a heavy investment. Many people who are in their twenties end up wishing that they hadn’t borrowed as much in student loans for college and managed their money better in general. If they did, it wouldn’t be so difficult to make ends meet to meet their obligations once they graduate. Depending on how much they borrowed, some are completely financially unstable and are worse off than when they were in college. So, what can students do to steer clear of the expensive web of student loans? Students can easily apply to personal loans online to consolidate debt or to pay off their college fees. These personal loans can be considered to be more student-friendly since you get better options and interest rates.

Before you borrow any money for student loans, you should realize that it’s not the amount you will be repaid. Student loan interest can add approximately 30% more to your payoff amount. If you don’t budget for this, your payments may be larger than what you expected and you may not be able to afford it. Planning for this will make it easier to budget what will have to be spent on student loans.

Don’t just wait to make a payment on your student loans after you graduate. See if you can get a work-study job or summer job and put a dent into those student loans. If you can, try getting a job during the school year, as long as it doesn’t compromise your grades. If you can’t, make a budget and see what you can cut out of it. Many of us can reduce our expenses and apply the money that you’ve freed up towards your loans.

Once you receive the money, be sure you use it only for education expenses and nothing else. It’s easy to take some of the extra money and use it towards something else besides tuition and books. However, if you can, it’s smarter to use some of your own money towards some smaller expenses like books. If you’re using the money now, it only means that you’ll end up paying the money back later. Who wants to be paying for a book 10 years later?

It’s important to remember that if you’re not managing all of your monies in school, then student loans will be only one of your worries. Make sure you control your lifestyle and living expenses. Unless you can afford it, avoid buying new clothes, electronic gadgets, and anything else that can eat up your budget. Also, extravagant spring breaks can put a ding in your budget. This doesn’t mean avoiding fun altogether; it’s just to be sure you’re not digging yourself into a hole. A basic rule of thumb in terms of affordability: If you’re charging these expenses to a credit card, you cannot afford it.

When you’re considering the amount you need to borrow, don’t ask for a loan amount based on what you think you’ll earn when you graduate. Sit down and make a list with all of the expenses you think you will incur and request that amount and nothing more. If you base your budget on what they’re willing to lend you, you could end up with more money you really need and paying back more than you can afford.

In general, if you stick to a budget throughout your schooling and make a conscious effort to pay back your student loans. If you do, you’ll be better prepared to pay back your student loans without overwhelming your budget.

Finance

Using Ratios To Test Personal Financial Health: How Financially Healthy Are You?

JonWritten by:

After you have created your personal balance sheet and monthly budget, you are ready to use financial ratios as a means of analyzing your financial health. Personal finance ratios convey, in understandable terms, what the raw data itself means. Looking at finances through relevant ratios helps identify economical strengths and weaknesses along with revealing important insights that may otherwise go unnoticed. The most useful ratios, when it comes to personal finance, can be classified into three categories: liquidity, financing decisions, and savings.

What is Liquidity  amp; How Do You Test it? To an extent, these ratios can also help you consider ways in which you can cut down expenses and save yourself from making unwanted expenses.

Liquidity is a measure of how able an entity is of paying off current obligations, most often in the short-run. The current ratio measures just this: liquid assets to liquid debt. Liquid assets, or current assets, include all cash and cash equivalents (such as savings and checking accounts). Liquid debts, or current liabilities, include all debts that need to be paid off within the next 12 months. Dividing your current assets by your current liabilities will give you a general idea of how on top of finances you are in the short-run. An optimal current ratio factor would be greater than two, thereby indicating your ability to easily pay off all current liabilities and also handle some unexpected expenses that could possibly come up.

Understanding the Implications of Your Financing Decisions

The current circumstances of your financing decisions become quite clear by looking at the debt ratio, a comparison of total debts to total assets. Dividing everything you owe by everything you own shows your current ability to cover all long-term debts. During certain periods of life this number will be high. If you’re measuring your financial health right after you graduate jobless with several student loans, or right after you purchase a new house on credit, the results of this particular ratio might scare you considering the optimal factor is zero. It can be okay if this factor is temporarily high as long as mitigating total debt is a long-term priority.

Looking at the Savings Ratio  amp; Identifying What’s Ideal

The savings ratio helps shed light on what funds are really being allocated to savings on a monthly basis. From month to month this ratio might vary so taking an average of several monthly savings ratios will be a better indicator of your true circumstances. Divide the amount of money you saved last month by the amount of income you earned in that same month. Depending on your present financial situation this might be low, but when possible, the savings ratio factor should be around fifteen to twenty percent.

Ratios certainly don’t tell us everything, but they can be a good reference when looking at overall health of our personal finances. Being liquid, debt-free, and able to save are just a few of the many important features of successful financial circumstances. Working towards optimizing these factors should be a financial priority for all of us.

Finance

What You Must Learn About Home Mortgage Loans And It Processes

JonWritten by:

Purchasing a home and securing a loan can be an overwhelming and frightening process. Many people find it difficult because they fail to put their financial information in order prior to applying for the loan. This can add unnecessary delays to the process and add unneeded stress to your life. It is highly recommended that you pre-approve for a loan before you begin shopping, as this will let you know how much you can borrow. However, once you’ve determined how much you can afford to borrow and found a house you want, the process becomes quite straight-forward.

Do these properly, and you won’t have difficulties financially in your new home. It’s easy for you to get Payday Loans for Party, since you know you can pay it accordingly.

1.This step can be the most daunting as it requires organizing quite a lot of information. Your lender will require documentation to verify your employment, credit and financial situation. This may be in the form of:

? bank statements,

?gross monthly income (pay stubs),

? names and addresses of employers for the past two years,

?tax returns,

?assets (retirement, stocks, mutual funds) information

?Mortgage or rent statements

?Other loan paperwork (such as a car loan)

?any other paperwork that might have an impact upon your ability to repay your loan (including credit card information).

You should also include information about the property you intend to purchase, including an appraisal and an inspection (although these may be completed later).

2.You will fill out a loan application and provide the requested documents to a loan agent. This person serves as the intermediary between the underwriter and you. The underwriter carefully scrutinizes the paperwork to make sure everything is as it should be.

3.It may take up to a week to get the initial response from the underwriter. It is likely at this point you will need to provide additional documentation or clear up questions from your application. If there is a large, unexplained deposit in your bank account, the underwriter will request documentation to prove that amount is not a loan. If you haven’t already completed an appraisal and/or inspection, it will be requested at this time.

4.After as many as four weeks, you can expect to receive conditional approval. This means approval will be granted once certain conditions are met (for example, a missing home inspection). Once those things are complete and you have received full approval, you will be contacted by an escrow officer or your attorney to come in to sign the loan papers and any other documents added by the lender. Make sure you know if you’ll need a cashier’s check (for your down payment) or anything special in order to complete the transaction. Make sure you bring picture ID. Once you sign, it will still be a few days before your loan is funded.

5.Once the loan is funded it will “close” a day or two later. This means your loan is complete and recorded with the county.

At this point you have exited the loan process and are now the happy owner of your new home!