With tough times comes tough choose and many consumers are forgoing the protection of life insurance because they feel they can’t afford it. Some are looking for the cheapest deals on the market without considering the realities of what happens when something goes wrong. For some, the process of going through a medical exam to get an insurance policy is a hard pill to swallow. Medical exams may actually prevent someone from getting a decent premium on a policy.

Is It Worth It?

Many insurance companies are advertising no-exam policies and are attracting a lot of business because of it. These agencies promise that a consumer only needs to answer a few basic questions before coverage can begin. There are no doctors, no tests, no exams required for the application process. While the policies may be legally valid, the fact that no-exam insurance policies will cost you remains true.

Typically insurance companies require a medical exam of the individual so they can gauge their risk. Since an applicant is only answering some questions and the agency has to rely on their word, premium costs go up because the risks go up.

Finding Quotes

If you are relatively young and in excellent health, you can find life insurance policies that do not require medical exams without much of a problem. The key to finding the right policy is to read the terms and conditions provided. You certainly do not want to pay for a policy that does not meet your needs.

Research not only the quotes you are getting from companies but have a look at the companies providing the quotes. Make sure they are a reputable agency with proper licensing. After narrowing down a few select companies, make sure you are looking at all of the information being provided. Ensure that the type of coverage being offered is what you need. If not, keep looking for the right policy at the right price. Never take the cheapest policy either. In many cases, what you pay for is what you get.

Good As a Supplement

If you have pre-existing medical conditions, you may want to find proper insurance and use the no-exam policies as a supplement to what you already have. Depending on your specific medical history, you may be limited in some choices but definitely consider all options before accepting and paying for coverage

Here are some of the more common expenses and what to expect when buying a home:

Credit Report Fees
Lenders will need to order a verified copy of your credit report and score before making a lending decision.

Homeowner’s Insurance
Insurance is always required when borrowing the money to purchase a home. You’ll likely need to purchase policy coverage before closing on the home.

Appraisal Fees
A perspective homeowner will need to pay for an appraisal to ensure the home is selling at fair market value and so taxes on the home can be calculated.

Document Fees
The lender or mortgage broker may charge you for document preparation time in order to prepare the loan.

Escrow Fees
An escrow account holds the money as the buyer and seller work out an agreement during the closing process. You may also need to have portion of your mortgage payment go into the escrow account to pay for insurance and property taxes.

PMI (Private Mortgage Insurance)
If you do not have a large enough down payment towards the home, you may be required to purchase Private Mortgage Insurance. In some cases, you’ll need to pay a year’s worth of insurance up front or you might be able to roll the payment into your monthly mortgage payment.

Property Tax
There may be instances where property taxes are owed to the seller who has already paid for taxes during the time period you were the owner.

Title Insurance
This is a type of insurance that will cover you in the event the person selling the home doesn’t actually own the home or any information provided for the title was false.

There are a number of other instances that may warrant a fee paid out by the new homeowners. You can discuss these fees with either your loan officer or the realtor you are working with on the sale. The more money you are able to save in preparation for your loan, the better off you will be at the time of closing and moving into your new house.

Your first step to monthly saving is to look at all of your household bills. Are there services you are receiving that you just don’t need? Most of us have several that we really could do without. Simply downgrading your cable package or eliminating extra channels you pay for like HBO can help to start the savings. Could you bundle your phone, cable and internet together to save money. Many people do. You may also want to consider eliminating your land line altogether. Most people have cell phones and find they don’t use their land line enough to warrant keeping it.

You should also look at other bills like your insurance premiums for example. Many times just with a few phone calls you can find a rate that is more favorable than your current one.

Next, look at what you spend on food each month. Do you grab your coffee to go and what about lunch when you are working? Do you pick up take out or head out to dinner frequently? If so, stop. Make your coffee at home and pack your lunch. Plan your meals ahead and save take out and dinners out for special occasions. Fixing it your self can be a fraction of the cost you spend out every day.

How about your grocery bill? Do you buy items that you really don’t need? Most of us do. Make a list before you head to the store of the items you really need and then stick to it. Don’t be tempted to add extras to your cart. You can also clip coupons and plan you meals around store specials that week for additional savings.

Finally, look at what you spend on entertainment. While we all need to have fun, there are ways to still do so and save money at the same time. If you rent movies a lot or purchase books, check out your local library instead. You might be surprised at the selection of items waiting for you that won’t cost a thing. Check your local paper for free or low cost events in your area. There is usually plenty available for people on a budget.

As a final piece of advice, keep in mind that it is only a savings if you save the money and don’t spend it elsewhere during the month. Often people will work hard to lower costs and save the money only to turn around and spend it foolishly somewhere else.

Paying bills- At the top of your list of financial priorities is paying for bills necessary to survive. All other financial goals are moot if you don’t have a place to live or the basic necessities in life. If you are working with a limited income and struggling to pay everything at once, you must make the decision to pay housing expenses, utilities and day-to-day living expenses first before focusing on other priorities. If you are just getting by paying these expenses, you want to look closely at where you can cut costs to free up more money for other financial responsibilities. This may include canceling cable or Internet services or dropping gym memberships.

Savings- In a struggling economy, many people find themselves weighing the need to save money or pay off debt. Having a well padded savings account is one of the best ways to avoid future debt, however if you are losing hundreds of dollars each month to high interest debt, you may not have time to build up the desired amount of savings. With that being said, after paying bills, you should try to tuck away just a few hundred dollars to have a small cushion of money for emergencies. When you are living paycheck to paycheck, missing a few days of work can put you so far behind the eight ball you will struggle for months to catch up. By saving a few hundred dollars you have the peace of mind that should you find yourself with even less available cash, you have something in the bank to get you by in the short term. Once you get past your financial hardship you can then focus on building an adequate emergency fund as well as putting aside money for retirement.

Pay off high interest debt- There is nothing more frustrating than watching your balances grow to epic proportions due to high interest rates. Clearly making the minimum payment will never get you out of debt, however if you are truly facing tough times, you should at least make the minimum payment to avoid late fees and other penalties that occur as a result of not making the minimum monthly payment. Ideally you should tackle your high interest debt aggressively to pay down your balances and stop the hemorrhaging of money. Once you have eliminated your high interest debt you will have extra money to put toward other financial goals.

Retirement contributions- If you have managed to get to this point, you are in good shape. You are paying your bills, have a growing stash of money in savings and have paid off your high interest debt. Now you must try to make up for lost time and begin contributing toward your retirement. If your employer offers a tax deferred retirement plan take advantage of this opportunity to sock away money each paycheck toward your retirement. If your employer provides a company match, all the better, increasing the money that goes into your account with no effort on your part.

It is almost impossible to address all financial goals at once, especially if you are dealing with a financial hardship. By prioritizing your financial goals you can make it through tough times and continue your journey toward other goals.

Switch to Cash

Leave your credit cards at home and switch to spending only cash. When you can only spend cash you are limited to what you have on hand, helping you to keep your spending under control. When you rely on plastic, it is very easy to add extras to the cart knowing that what you spend can be virtually unlimited. After all you can spend today and not worry about it till later. This can be a deadly habit.

Learn the Difference Between Needs and Wants

Before making purchases stop and determine whether or not what you are going to purchase is a need or a want. Think it through. By all means if it is a necessity and you have the cash, make the purchase. If however, it is just a want weigh the pros and cons. Before making the purchase decide whether or not you can truly afford it and what purpose the item will serve you. It is also a great idea to sleep on any purchases that are not necessities. Sometimes when you have given yourself a chance to think about it, you realize you really can live without the item.

Make a List and Check it Twice

Never shop without making a list first. It is so easy to randomly throw objects into your cart as you go through a store. Before you know it you could have dozens of items that just aren’t necessary. Before heading out to shop, especially for groceries, determine what you need and write it down. Once you are in the store, stick to purchasing only what is on your list.

Keep Better Track of Finances

Keep a Debt Diary. Write down every dollar that you spend. This way you can see where your money is going. Then total it. It can be amazing to see how easy it is to spend hundreds of dollars each month on needless purchases like coffee to go or lunches on the run. When you see it in black and white it is much less tempting to make those purchases.

Don’t Skip Entertainment

Finally, give yourself some play money. Each week or month make a dollar allotment that you can spend how you see fit. Whether it is $10.00 or several hundred, depending on your means, you can blow that money any way you like. Just know that once the money is gone you are done for that time period. Knowing you have this fund will help you to stay away from extra spending.

Common Cause of Personal Property Loss

• Windstorms
• Fire
• Smoke damage
• Lightning damage
• Theft and vandalism
• Water damage
• Structural damage
• Damage caused by faulty contractor jobs 

These types of disasters occur every day. Think about the thousands of dollars of belongings that are inside of your rental home.   Most people carry a lifetime of belongings with them when they move and keep them in the space they call home, be that a house or an apartment.  What you own is often inside of your apartments or home.  There are alarming numbers of renters who do not even consider purchasing renters insurance to protect their possessions.  Your belongings in addition to having irreplaceable sentimental value may have irreplaceable monetary value that will not be covered in the event of a disaster unless the renter takes the proper steps to protect them in the event of an unforeseen disaster. 

Natural disasters do occur every day causing thousands of dollars in damages to homes and the property inside.  If a natural disaster occurs not only might you be displaced as a renter but you may be without your necessary everyday possessions if you have not taken the necessary steps to cover them with appropriate renters insurance.  Renter’s insurance policies can be shopped to meet your unique needs. Policies vary in price from basic to comprehensive coverage. Your coverage should depend on the valuables that you have in your home. 

As we all know every insurance policy from car to pet to medical has clauses and exemptions that are often only listed in the fine print. This is also true with homeowners insurance. Not every policy covers every possible occurrence.  Most policies do not cover personal belongings for tenants.  It is very uncommon that a typical homeowner’s policy would cover renter’s belongings in the event of a disaster.  Renters should be aware that in the event of a disaster your belongings may not be covered in full or even at all. Do not assume that you will be covered. 

Some choose to rent because they do not want or can’t afford the expenses associated with homeownership.  The reality with insurance is that personal property is not considered a covered expense in most landlords’ insurance policy.  Yes, renters insurance does have a cost associated with it.  Considering the potentially expensive risk you take if you are not covered is well worth the few hundred dollars you will be paying for the peace of mind and protection of your lifetime of personal possessions.

• Goal setting- An important and often overlooked step in improving personal finances is setting goals. To put it simply everyone wants to get out of debt, save more money or make that big purchase. The people who most often see their wishes come true are the ones who have a very specific set of goals as well as a plan to achieve these goals. Without both short and long term goals, you have no way to establish steps to achieve them. Without steps you are basically just floating along, hoping you are doing what it takes to reach your goals.

• Education- You don’t have to have a degree in finance in order to improve your money situation. You do however need to have a basic understanding of financial planning. Short of winning the lottery you will have to work out a system to pay off debt, grow savings and invest in long term financial goals. The more you know, the better off you will be in the long run. There are numerous books, magazines, television programs and websites that offer personal finance advice. With that being said, don’t trust everything you see or hear without confirming the experience of the adviser.

• Use common sense- While education is important there are times when you have to rely on good old common sense. If you are spending more than you earn you have to either cut back spending or increase your income. Living within your means is great, however living below your means is better. Think twice before making purchases and consider if what you are about to buy is the best use of your hard earned cash.

• Don’t give up- To be successful in life and finances you have to be persistent. If you encounter obstacles or experience set backs you have to get back on the proverbial horse and keep going. When you allow yourself to get frustrated or overwhelmed you often make bad decisions which will set you even further back on your path to financial success.

There are many changes occurring the world of personal finance. More people are committed to eliminating debt and building savings for financial security. Turn your resolutions into a reality and experience what it is like to live a financially independent life.

Groceries

Plan out your meals per week; by creating a menu, you know precisely what items are needed and this will reduce your grocery bill by not buying lots of unnecessary extras. Your slow cooker, microwave, and toaster over can be your best friends for convenience, plus they use significantly less electricity than a conventional oven. Try to avoid purchasing sodas and kids’ fruit drinks because not only are they more expensive but they are also loaded with sugar and nearly 0% nutritional value. Consider buying paper goods, bread, etc in bulk at warehouse stores like Sam’s Club or Cosco’s.

Utilities

Keep your thermostat set below 74 degrees Fahrenheit for heat or above 77 degrees Fahrenheit for air conditioning, unless it’s extremely cold or hot outside. Also, keep in mind a fan only makes it feel cooler in a room because of the circulating air, so be sure to not leaving running when the room is unoccupied. Some local gas and oil distributors are offering programs which provide the opportunity to keep your price per gallon locked in and unaffected by the fluctuation and rapid inflation of prices. Remember to turn off lights when leaving a room and unplug some things when not in use: radios, printers, fax machines, electronics, space heaters, chargers, and most small appliances.

If possible, run your dishwasher no more than twice a week and use a clothes line rather than your dryer, during good weather.

Dining Out

Cut back on eating dinner out to no more than twice a month; once is even better. Make your own coffee, breakfast, and lunch rather than buying it out or visiting a vending machine. If you’re spending at least $6 each workday morning that unbelievably equals approximately $2,190 a year. Just think of the Christmas you could have simply by investing in a good coffee maker and toaster oven!

If you’re spending $10 per workday for lunch, snacks, and a drink then you’re blowing at least $2,700 a year. This would buy many gifts as well as a lot of deli meats and fresh fruits for lunches; this includes the kids’ lunches and dad’s too.

Entertainment

Wisely utilize your local library for DVDs, CDs, internet access, books on CD and MP3 players, plus books all for FREE.

If you’re fed up with paying late fees on your credit cards and overdrafts to your bank, these tips should help. When you live from one paycheck to the next, or maybe even worse, you don’t know when you’re next paycheck is going to come – it’s difficult to juggle the bills and due dates. Taking strides to improve your financial situation can save you both in terms of late fees and overdrafts – but also in the long run. Credit card companies routinely increase interest rates on cardholders who pay their cards after the due date, since you’re seen as a bigger financial risk to them.

The following tips will help you minimize late fees and overdrafts:

When Is it Due, Exactly?

When money is tight, many people find themselves sending all of their payments in on the day they are due. You would think as long as it is postmarked by the due date, or paid online on the due date, it should be considered “on time” right? Check the fine print on the back of a credit card statement to see when the late fees are applied – technically a late fee can be applied if a payment is not received and posted to your account by a certain TIME on the due date – even if it’s postmarked on time.

Do what you can to change how you pay your bills – if they’re due on the 15^th, pretend they’re due on the 10^th. This will give you 5 days for your mailed checks to arrive and get posted; or 5 days for an online payment to be posted. (Did you know some online payments take 2 days to post to your account?! Why isn’t it instant? Who knows – but knowledge is the power here. Even when paying online, give yourself a few days before the due date to ensure there is enough time for the payment to post).

Change Your Due Dates

Instead of just pretending you have an earlier due date, you can actually change many of your account due dates. If you find almost all of your bills are due on the same day of the month, you can call and change due dates and stagger them out across the month if that makes it easier for you to pay. Instead of coming up with the full amount for all of your bills by the 10^th of the month, you can pay a few each week, which makes managing your cash easier.

If you have a mortgage that you pay monthly, you may even consider asking the mortgage company for a bi-weekly mortgage plan. There is usually a fee to set it up which increases the amount you owe over the year, but you pay less interest over the life of the mortgage. Plus, if paying half of your mortgage payment every other week is easier than paying it all at the end of the month, the money you save in late fees or overdrafts is probably more substantial than the fee charged by the mortgage company for setting up a bi-weekly payment.

Bank Regulations Help Reduce Overdrafts

Previously, banks were known to change the order of withdrawals so that the most expensive withdrawal would post the account before any of the other, smaller withdrawals that clear in the same time frame. This meant if you were a few dollars short, instead of having one overdraft for the last withdrawal to clear the bank – you would have multiple overdraft fees for each individual withdrawal if the largest withdrawal was processed before the smaller ones.

Luckily, changes in banking regulations are putting a stop to this practice. You can even opt-out of overdrafts by signing a form with your bank that prevents them from paying any withdrawal that you don’t have enough money to cover.

The first essential step is to start contributing money right away. Don’t wait for the ‘right time’. That time never really comes. Start by contributing just 1% of your income to your 401K. This is the first step in creating financial security in your future. Make it a goal to increase that amount on an annual basis. This year 1%, next year 2% and so on and so forth. Contributing now is especially important if your employer matches your contribution. If at all possible, put in the amount that your employer will match. This can be anywhere from 3-8% depending upon the company. Imagine contributing just 1% of $30,000. This is matched by your employer so that by the end of the year you have $600 plus the interest on your investment. Now that you’re in the habit, soon you’re contributing 10% of your income and your employer matches up to 5%. Now you’re at $4500 plus interest. This snowballs into $20,000 then $30,000 and beyond. It takes the first small step to get there.

Determine what you need from your 401K money. This greatly depends upon what stage of your life you’re in. Are you five years from retirement or 15 years from retirement? Do you plan on working after retirement or does this money need to pay for all of your living expenses from the age of 60 to the years beyond? If you have five years or less until retirement then you may want to invest in more stable items such as bonds. For those with 15 years or more until retirement, consider it safe to play with stocks. Yes, the stock market has it’s ups and downs but you have plenty of time to sort that all out. The stock market is a long-term investment. Don’t panic if everything takes a dive, stay the course and keep investing. If you continue to buy stocks in the “bad times” then you are actually getting it much cheaper than before and will double or triple your money when the stock market recovers. History has proven that the stock market always recovers.

Retirement should be a time to sit back, relax and enjoy life without having to worry about making ends meet. You are the only one responsible for your retirement. Don’t rely on others to take care of you. Take the steps needed to secure your financial future today. If you already contribute to your 401K then take a look at your portfolio and find out if you’re making the best investments for your age. If you don’t contribute then start now.