Many people entering the work force in the current economy may find themselves questioning traditional advice as to how to get started with retirement savings. That is of course if they are thinking about retirement savings at all. Hopefully, all young people are thinking ahead as the key to growing your savings is to start early, ideally when you first begin working. While things have certainly changed in the past few years, many financial planners are still recommending basic retirement vehicles to work toward your retirement goals. This includes the 401k. Here we look at tips for setting up a 401k when you are just starting out.

• Understand the importance of starting early. Starting retirement savings in your 20′s may seem a bit early, when you are in your 20′s. After all, it could be hard to imagine the end of your career when you are just starting out, however the early start is what helps your savings grow. When you start as early as possible, preferably with your first paycheck, you have the time on your side, in this case possibly decades for which your savings can grow. By starting at the the very beginning of your career, you tend to not even miss the recommended 10% of your wages that financial planners suggest you put away.
• Automate versus autopilot. There is little doubt that people who set up automatic deposits to their preferred savings vehicle will save more over time. When you have to physically move money from one place to the next, there is a tendency for that money to get lost in the transition. Understand however that just because your savings should be automatic, they shouldn’t be on autopilot. This means that once you establish your 401k, you should pay close attention to where your money is being allocated and what is happening with those investments. Saving for retirement is intended to be a long term investment strategy, however there will be times when you have to make changes to ensure your money is being put to the best use.
• Investigate your options. Retirement plans can be confusing, especially when you are just starting out. Make sure you ask plenty of questions and fully understand the benefits as well as drawbacks of each option. There are several types of 401k, each with their own restrictions and exclusions. It is imperative you understand what your options are as well as the long terms consequences. Knowing the difference between a Roth 401k and a traditional 401k, as well as maximum allowed contributions are the types of things you should be well versed in before making your final decision.
• Avoid debt as you save for retirement. It can be very easy for individuals just starting out to begin saving yet end up owing more money in the long run. While retirement savings are very important, do not cut your budget too short which could result in high interest debt that is counter productive to your long term financial goals.

The economy is never going to remain the same, therefore it is important to know how to invest your money wisely throughout all stages of your life to ensure when the time comes to retire, you have the savings available to live comfortably.

Debt is affecting people across the country. It is not a new idea but the rampancy of debt struggles has risen in America. Debt affects a lot of families, causing stress and inconvenience. It’s harder to get loans with the bad credit scores that arrive from paying bills late or defaulting on payments. The last straw for debtors is usually bankruptcy.

Bankruptcy is an arduous process and doesn’t solve all your debt problems. It is a strict legal process that not only takes a lot of time, it also costs money. After bankruptcy has been declared, some debts will be wiped from your slate but it leaves a giant mark on your credit history and score for up to ten years.

 The Effects of Bankruptcy

If you file for bankruptcy, you will have to go through legal appointments with your creditors and prove to the court your intention to relieve your debts is not fraudulent. Afterwards, the bankruptcy stays on your credit and can affect new job searches, new applications for credit cards, loans, and any other financial matters. One part of the bankruptcy effect involves your life insurance but few people realize this. If you have an existing policy, the bankruptcy court typically won’t touch it in court to protect your beneficiaries. If you have a permanent life insurance, the bankruptcy court will allow you to keep part of the cash value. The amount will be determined by where you live as the laws differ between states. Any insurance policies you have taken out for someone else like your children or your spouse will be surrendered to the court.

Raising Rates

A bad credit score is known to adversely affect your life insurance premium rates. If you score is bad, the rates for your premium will be very high. If you are already struggling in debt, paying a higher premium is not going to help your financial situation. Once you have filed bankruptcy, you can wait for some time to pass while you rebuild your score before shopping for insurance. However, understand that life insurance companies will still see your bankruptcy on your history report and will consider you a risk.

Life insurance is a smart financial move and you should not avoid it due to debt issues and bankruptcy. It will serve you well to seek out the insurance companies that provide you with term life insurance policies so your family is protected while you straighten out your personal financial life.

Investing in your future is one of the best financial moves you can make. There is no argument that money well invested will serve you much better over time than the same cash equivalent placed in a traditional savings account or worse yet in a cookie jar. With that in mind, some people make the decision to avoid investing their hard earned cash. This is usually out of fear of the unknown or lack of information. Investments can be a tricky business, however there are some things that can make the process less intimidating. Here we will look at how emotions play a role in your investment strategy and which emotions and behaviors are better checked at the door.

• Greed- Everyone is guilty of this emotion at some point in their life. In the world of investments, greed can be the fastest way to the poor house. When you decide to invest your money, regardless of the type of investments you are considering, it is important to remember that there are no guarantees. For this reason you should weigh all of your options carefully and only invest money that you can afford to live without. Diving into the world of investments with the goal of getting rich quickly rarely works and in most cases results in greater loss than gains.
• Complacency- It happens more often than many investors care to admit. You choose your investment vehicle, set up your portfolio and then put your investments on auto-pilot. Yes, many financial experts recommend hanging in for the long haul, however in the current economy you must remain up-to-date with what is happening in the market. Does this mean you should jump in and out of investments? Not necessarily, for the most part investments are long term strategies that often weather economic cycles. This does not mean that you can turn a blind eye to events that are happening and in some cases make changes necessary to prevent further loss.
• Pride- You have taken all the right precautions and made educated decisions in regards to your investments. Despite all of this there are times when what you believed to be a good move turns out to be a mistake. When this occurs, do not let your pride stand in the way of making sound financial decisions. We all make mistakes, it is best to acknowledge them and move on.
• Fear- One of the more powerful emotions that leads to poor decisions in regards to investments. Fear of the unknown can stand in the way future growth. To overcome fear you must first learn as much as possible about investments. As you learn more (from qualified sources) you will grow more confident in your ability to make informed decisions about investment strategies.

It is natural for emotions to play a huge role in how your manage your money. After all, your financial situation determines your quality of life on so many levels, it is impossible to avoid the strong feelings associated with your financial health. With that in mind, smart investment decisions are most often made as a result of educated and informed choices versus those made in the heat of the moment.

Most small business owners that want to make a name for their company will make use of promotional products at sometime during the lifetime of their business to build brand and company awareness, but are promo items effective?

It depends on what they are and how you hand them out. Everyone has a pen from just about every local company sitting in a container somewhere, but that doesn’t mean that they are thinking about you. The best way to be successful with promotional products, like the ones from Paragon Promotions, is to make highly visible promotional products such as T-shirts and other clothing items. People like free shirts. Some of them might end up at Goodwill, but others will become walking billboards for your company.

You also have to keep costs down. Promotional products can turn into a huge marketing expense if you let them, but company-branded items have really become a commodity product. If you shop around and get prices from several vendors, you will generally get about the same quality of material regardless of who you go with, but what you pay can vary dramatically from company to company ,so make sure to shop around before placing an order.

If you are interested in learning more about promotional products, click here to read more.

A credit union is a financial institution formed by members of a group which allows those members to pool their financial resources for the use of all members. Unlike a bank with is not owned by the customers who use that institution, a credit union gives its members the opportunity to benefit from the services provided. This may come in the form of higher interest rates on savings or lower interest rates on loans. The goal is to provide members with an organization that provides a variety of financial services to its members while helping them save money and improve their personal finances.

Credit unions are fully insured through an organization similar to the FDIC, which insures the commercial banks, and offers most of the same products and services as those found at bigger banks. To learn more about credit unions which you may be eligible to join or other information about credit unions, consider visiting the official website of the Credit Union National Association for more information. Here we look at a few of the benefits as well as drawbacks of using a credit union versus a traditional bank.

Pros of a Credit Unions:

• Credit unions are non-profit organizations. They are owned by the members, and the members control the capital in the organization.

• Friendly and helpful service. Credit unions want to lookout for their members, and often know their members better which encourages a closer relationship and financial help for members.

• Credit unions are just as dependable as a local bank. They usually are open the same hours and offer the same services (credit and debit cards, checks, car loans, mortgages, online banking, etc.). Often the credit unions even offer much lower interest rates on loans and their credit cards than commercial banks.

• Low joining fee. Credit unions have a low fee to join, usually between just one to ten dollars to open an account and start benefiting from their services.

Cons of a Credit Union:

• The biggest drawback of a credit union is the limited number of branch offices. Usually credit unions only operate in a specific area, and therefore have fewer branches and ATMs. However, many often lower the fee to use another ATM, and some even waive the fee completely.

• Not all credit unions are equal. Some do not offer all services available at major banks. Be sure to find out in advance which services are offered at the credit union you are considering to ensure it will meet your financial needs. It is a good idea to keep a small account at a bank (perhaps a free account) in the event you need their services as well.

• Some credit unions won’t be able to hand out large amounts of money right away if you need to withdraw a large amount. You will get your money, but it might not be that business day.

Many employers, especially the larger corporations, are now using a credit history screening tactic to get a perspective on a potential employee’s responsibility and credibility traits. They feel if you are not able to adequately handle their own personal financial matters, they may not be equipped to handle the responsibilities of the job. They may also surmise that if your debts are higher than your paycheck each month, your focus will be on the money and not the job performance.

Critics Disagree

Some feel that using a person’s personal credit history is an unfair practice for conducting job interviews. Because poor financial histories can be caused by a number of things, it may not be an adequate look into the person as a good perspective employee. Others feel that nothing is wrong with using a credit check as part of the regular background check since companies have a lot to lose by high employee turn over or the risks of hiring someone not capable of staying focused on the job.

Knowledge is Power

It is estimated that more than 80% of Americans do not know employers can use their credit against them. When you are completing the paperwork during the employment application process, you need to make sure you read what is there before signing. If you are not comfortable with the credit check policy of the employer, you have a right to discuss the policies first. Depending on the situation, your credit may never be checked but on most cases employers will be open to understanding a potentially damaging score if you have a reasonable excuse for the poor scores or history. Do not volunteer any information upfront about your credit unless the job description specifically includes a good score. Wait to justify the low scores during later steps in the interview if everything else seems to be going well.

Bottom line is this: If you are qualified and your skills and job history are impeccable, a credit score that is less than perfect will likely not prevent you from securing a job offer.

The housing industry seems to be stabilizing slowly but surely so if you are in the market for a new house, there are some things you should consider during the negotiation process. You certainly do not have to pay what the seller is asking right up front if you are looking to get the best deal for you.

Provided you have an excellent credit rating and can get pre-approved financing, you’ll have room to employ negotiation tactics to ensure you get the best deal on the home you want to buy. Those with a poor financial background may not have as much wiggle room so it is best to improve your financing options and your credit score before looking into homeownership.

Here are the negotiation considerations to make during the buying process:

Closing Costs
Sellers often pay the closing costs, especially for a first-time buyer. Right now, sellers are looking to sell and they might be more open now to paying the closing cost for you. It certainly does not hurt to ask.

Closing Dates
There are all kinds of situations that can crop up during the home buying process. For instance, the current owner may need a time extension to move or you may need to take possession of the house fast. In either case, you can try to negotiate a deal that works to your benefit. Some sellers will agree to pay for a buyers housing expenses (rent extension, hotel costs) for delaying the process. Other sellers may be willing to let you move in and rent the place if you are not yet ready to sign on for the mortgage.

Maintenance and Repairs
Homes on the market will need to be inspected. The seller is typically responsible for major repairs that are necessary but as a buyer, you can negotiation an allowance for the cost of other more minor repairs to be done by the seller as well. Some points might b the replacement of old flooring or a new paint job. The only time this will not work is when the owner has chosen to sell the house ‘as in’.

Building Negotiations
If you are purchasing a ‘to-be-built’ home, don’t cancel out the opportunity to negotiate details with the builder. You may want to see if they would be willing to finish a basement, add a deck, or other finishes as part of the deal. Not all builders will go for the idea but if you have thoughts, it’s best to share them. You might not get the full deal but even a discount in cost can be a big savings.

Frugality is a way of life but some things in life still require a lot more money than we are willing to pay. When it comes to cars, it seems as if it is a necessary evil. We must have a car to get to work to make money. Without a car, many people would be lost so when it comes to car expenses it seems many individuals do not leave much room for consideration.

Here are 10 things you should stop wasting your money on when it comes to your vehicle:

1. Buying Premium Gas
People will complain about ‘cheap’ gasoline causing knocking in vehicle engines but any octane gas will prevent knock. You can use regular gas at the pump and start saving cash today.

2. Oil Change Every 3K
Car manufacturers actually recommend an oil change at 5,000-7,500 miles. Some cars even come with the technology that actually tells you when your oil is dirty. If you rarely use your car, you can limit your changes to twice annually. For more driving, cold climates, and above-normal driving including towing, and for high-performance vehicles, stick with the manufacturer’s recommendations and not the oil change service commercials.

3. Take Repairs to the Dealer
Unless there is a recall on your vehicle that will be repaired at no cost to you, check around for an independent repair service that will provide the same of quality work at much more reasonable pricing. Ask friends and family for referrals to reputable places. You should even call 3-4 places and ask for an estimate on work that needs to be done before choosing.

4. Improper Tire Inflation
You should check your tire inflation at least once a month. Tires that are not properly inflated can cost you extra gas each time you drive. You also run the risk of blowing out a tire that will cost additional cash to repair or replace.

5. Replacing Tires Without Proper Alignment
If you find you have to keep replacing your tires because they are wearing unevenly, you are wasting your money over and over again if you haven’t first check the alignment on your vehicle. Alignments are necessarily cheap either but it will save you a lot of wear and tear on new tires and prevent you from having to replace them often.

6. Extended Warranties
Generally, car manufacturers allow you to wait until right before the original warranty runs out on your car before offering you the extended warranty. If your car has been with you awhile and you don’t anticipate a lot of trouble based on history, don’t fall for the extension as most of the additional warranties are not worth the cost.

7. DIY Maintenance
If you can not change a wiper blade, a tire, or the air and fuel filter on your vehicle, you are wasting your money. Not everyone is a born mechanic but if you have to rely on paying someone each and every time it will cost you. Ask a friend or visit the local high schools that teach mechanics for a lesson or two in the basics.

8. Too Much Insurance
Liability is something you don’t want to skimp on with your car insurance. When it comes to comprehensive and collision you want to determine if you really need it and if so how much. You can add your deductible to the yearly bill for collision and comprehensive coverage and then check out the wholesale value of the vehicle. If it comes to more than half, you reconsider the coverage.

9. Disorganized Records
Even if you have been with the same mechanic for ages or if you routinely change service places, you should always keep records of your car’s maintenance. In the event someone tries to convince you that you need new brakes, you can go back to an organized file and prove to yourself and the mechanic you just got new brakes two months ago. It is also important to keep receipts and other information that will help you maintain and use warranties or get refunds for faulty repairs.

10. Car Wash Waste
Sure it is convenient to drive up, drop some quarters and have a high pressure washer at your service or have someone else do the whole job for you but you can save quite a few bucks buy buying supplies once and cleaning your car at home. Wash soap, wax, rags, a bucket, and a vacuum cleaner will allow you to clean your car often and at less cost.

In the past decade cell phone use has grown exponentially to the point where just about everyone, any age and from all walks of life use a cell phone on a daily basis. At one time cell phones were both bulky and expensive to own, however advances in technology have reduced the size and cost of cell phones while adding features that weren’t imaginable years ago. With that in mind, cell phone bills can still be a significant cost if you are not careful as to how you manage your plan and usage. Here we look at a few tips to reduce your cell phone bill allowing you to redirect those savings elsewhere in your budget.

• Consider prepaid services- This is one of the easiest ways to manage your cell phone bill budget. This option works best for individuals who do not qualify for a cell phone contract or those who find a two year contract too restrictive. Most major carriers offer this option now and you can also pick up a pre-paid phone at most retail locations. This makes it a convenient and affordable option for cell phone users.
• Watch your minutes- If you are in a contract, it is important to stay within the minutes or usage allowed by that contract to avoid additional fees which can quickly turn a manageable cell phone bill into one that is very expensive. If you cannot reduce your talk time, consider changing your plan to one that allows for more minutes to avoid overage.
• Review your bill- There are many people who simply pay their cell phone bill without ever looking at the charges that have been applied. By reviewing your bill carefully each month you have the opportunity to not only spot errors (and they do occur) but you can also learn whether you are paying for more features or usage than needed. If you routinely come in under the amount of minutes or text messages included in your plan, you may want to consider a less expensive plan.
• Skip the insurance- Insurance is a great thing to have to cover expenses that you would not normally be able to afford in the event of an emergency. This generally includes major expenses such as medical bills, car accidents, damage to your home or property. While no one wants to pay to replace a damaged or lost phone, in most cases it is more affordable to just skip the insurance and save that money for other uses.
• Compare carriers- The cell phone industry is competitive and service providers are eager to capture and retain as many consumers as possible. This gives you the advantage in that you can either switch to a new carrier to gain great deals or negotiate with your current carrier for a less expensive plan.

With much of the population considering a cell phone a necessity versus a luxury, finding ways to reduce your cell phone bill can save hundreds of dollars per year that could be better used elsewhere in your budget.

Choosing the right time to take out a personal loan can be a difficult decision for many people.  Sometimes, there are financial reasons that make it a good idea to take out a personal loan while in other cases, a new personal loan will end up causing a financial hardship for the person.  There are many pros and cons to taking out a personal loan and choosing the right time to take out the loan could be very beneficial for your financial future.

Benefits Of Taking Out A Personal Loan

There are many benefits to taking out a personal loan at the right time in your life.  Over time, the payments that you make on your personal loan can help you build up your credit score, which makes it easier to obtain additional financial products at a good interest rate in the future.  With a steady record of on time payments for the life of the loan, the person’s credit score can be increased by a significant amount.

Some people choose to take out a personal loan to have the money to be able send their child to college while other people choose to take out the loan to pay off high interest debt so that their monthly payments will be lower and they will not be paying as much in interest payments.  Many people choose to take out a personal loan in order to take advantage of a lower interest rate.  In some of these cases, the person’s credit was not considered excellent when they applied for a credit product and now they have a credit score that would qualify them for a lower interest rate.

Types Of Personal Loans

When choosing whether obtain a personal loan, a person will typically have a choice between two different types of personal loan products.  The first type is a secured loan, sometimes called personal bad credit loans, which is typically offered to a person that has a lower credit score or a credit history that has a record of delinquent or missed payments.  A secured personal loan will require the person to put up some collateral, such as their home or their car, so if they default on the personal loan, the lender will have some way to recoup some of the money that they are owed.

The other common type of personal loan product that is typically chosen by people is an unsecured loan.  These loans are generally offered to people that the lender considers a low credit risk, meaning that they have a higher credit score, a long record of on time payments in their credit history, and make enough money to be able to pay the loan off easily.  This option is generally considered to be the most attractive option and will typically have a lower interest rate for the loan. Often times borrowers look for no check personal loans because they have fewer hassles in the application process and don’t always check your credit info.

It is important for the person to read all of the terms of the personal loan before signing any paperwork to make sure that they understand exactly what they are agreeing to.  Some people choose to obtain a long term loan where their monthly payments are lower but they have to pay on the loan for a longer period of time.  This may be an acceptable option for people that are younger, but may not be an attractive option for people that will be retiring soon.  Others choose a shorter term for the loan, where the monthly payments are higher, but they are paying off the loan in a short period of time and paying less in interest.

The choice of whether to take out a personal loan will depend on a number of different factors, but with careful consideration, the person will be able to determine the right time to take out a personal loan.