When purchasing a home the mortgage you choose and the options you choose with it will have significant impact on how much your home costs you in the long run. Interest charges, origination fees, fees paid for a specific interest rate (formerly referred to as ‘points’) and settlement charges will often have the most impact. Of these, the interest rate you pay will matter most.

Compare Two Mortgage Loans

View Resource Compare Two Mortgage Loans
You have probably noticed by now that when you get your credit card bill each month, it does not read like all the other bills you receive, like utility, gas, cable, and others that have a total due amount. Your credit card bill comes with a minimum payment amount in addition to your outstanding balance. While the outstanding balance might be a little more than you want to contemplate paying at the moment, the minimum amount may be no better. In fact, it can cost you a great deal more if you pay only the minimum balance for an extended period. What is a Minimum Payment? The minimum payment amount is the absolute minimum amount of money the credit card will accept to consider your obligation to them, for the indicated term – usually a month, satisfied. According to All Financial Matters, the minimum payment is typically two percent of the outstanding balance, although that may vary by card issuer. At a minimum, it should cover accrued interest charges for the month. Card issuers also typically have a minimum dollar amount payment, of say $25 if the alternative minimum payment would fall below that amount. Benefits of Minimum Payments Credit card companies did not have nefarious intentions in mind when creating minimum payments. In fact, they were a bit of a boon to consumers who may need a little more flexibility in their payment requirements. Some months the gas bill can be higher than others, or there may be unexpected car repairs that come up. Having the ability to pay only the minimum payment in these rare months is a great thing for consumers who may be establishing themselves and just getting started on their savings plans and rainy day funds. The problem arises when you rely solely on making minimum payments without making headway on the actual debt. Impact of Making Only the Minimum Payment As the saying goes, “It is a trap!” One that can keep you buried in debt and paying interest on your credit card debt – while barely touching the actual balance due month after month after month. That can occur even if you never make future charges on your credit card. Honestly, though, the minimum due payment is not evil by itself, it was created with good intentions. Unfortunately, it has become far too great a temptation for many consumers who consistently pay only the minimum balance. That is when it becomes a trap – one that ties you to debt and the credit card issuer for many more years than necessary. Credit Donkey explains that by paying only the minimum balance on a $14,718 debt with a 13.04 percent APR, it would take 31 years to pay off the full debt. In the process, you would pay well over $16,000 in interest (remember the balance owed on the credit card is a little less than $15,000). If you increase the monthly payments to $300 per month, you can reduce the payoff time to only six years paying only $6425 in interest. Adding one dollar more per month reduces the total interest payments by $35. Ten extra dollars per month an extra $333. Doubling the payments to $600 per month allows you to pay off the debt within two years and reduces the total interest payments to only $2,493. As you can see from this example, the difference is substantial. Plan to Pay Off Your Balance The best scenario is one in which you pay off your balance each and every month. It minimizes the amount of interest you will pay while allowing you the flexibility credit cards represent. Barring that, because sometimes, it is just impossible to do in one fell swoop, create a plan in which you make significant progress toward paying off the balance each month. Give yourself a deadline for paying off the balance and determine how many months that will take (keeping in mind that interest accrues and grows with each passing month). Making minimum payments on your credit card can be tempting – especially when life takes you by surprise. Try to keep the minimum payment months to a minimum and pay as much as possible whenever possible. In the end, this will let you enjoy an impressive reduction in the total amount you will wind up paying for those items you have charged.

Avoiding the Minimum Payment Trap

View Resource Avoiding the Minimum Payment Trap
Choosing a college major can be intimidating. You are making a commitment about what you think you will want to do for the rest of your life at a time when making dinner plans with friends can be a challenge. With the costs of education rising exponentially, pressure is increased to choose a major that justifies the expense of your education – one that allows you to repay the loans you took out in order to receive that education. The Value of a College Degree Money matters when choosing a college education – especially in light of the fact that some people are beginning to question the actual value of a college education. According to CNBC, college tuition for private universities has tripled since 1990, while public universities have increased tuition costs by more than 100 percent over the last 25 years. At the same time, salaries have seen only small increases, leaving the students of today with a far smaller ROI for attending college than their parents received for those same education dollars. The bottom line is that there is more pressure today than ever for students to select profitable majors. Finding a Major That’s Right for You Choosing the right major can make all the difference in the world for your future financial stability. While many students are tempted to go with their interests and passions when choosing a major, that does not always translate into long-term happiness or financial security. Student Loan Hero suggests that turning your passion into your employment can sour the love affair aspect. For instance, while you may love cooking, the stress of working in a busy restaurant may wear down that love over time. More importantly, following your passions may make paying off an enormous student loan debt more difficult, the organization says. It’s true that there are a few artists who make it big, though many, many more do not. Instead, consider focusing your selection on choosing a major that offers greater earning potential, a larger number of entry level job prospects at a living wage, and financial incentives, such as tuition reimbursement. Tools and websites that can help are Payscale.com, Salary.com, and BLS.gov. Understanding Your Job Prospects Discuss career options and job prospects with academic advisors and career counselors within the college. Look for fields that are always going to have high demand. Healthcare, for instance, offers a high demand industry with virtually unlimited growth potential as the world is already experiencing a global health workforce shortage – one that is set to increase even more by 2035. While not all careers can offer this type of job security or prospect, taking a little time to research your options can help you pinpoint careers offering better prospects within your field of interests. Meeting Your Future Financial Obligations Students today are facing overwhelming debt from day one with their college degrees. Rising costs have rendered parents unable to cover the full costs of tuition and other fees and expenses associated with college educations. That places the burden on students to shoulder more of the costs – often in the form of student loans. That is why it is so important to choose fields that offer you the opportunity to earn a living wage, and also allows you to pay off the debt you are facing at graduation – especially in light of a job market that is less than stellar despite the recent recovery. That means that in addition to job prospects, you also need to pay close attention to likely starting salaries. The median wage in an industry is just that – median. Students coming out of college are rarely going to start anywhere near the median income in their industries. Ask around and get facts about actual starting salaries and use that as your guide to help you choose a major and career path that aligns with some of your interests, while simultaneously keeping your financial interests at the front and center of all your educational decisions. When you take the time to choose a major that is a financially sound decision you have greater opportunities to pursue your passions on the side while working in a career that pays a living wage with plenty of room for growth.

Will Your Choice of Major Payoff Financially?

View Resource Will Your Choice of Major Payoff Financially?
Losing a job is never easy. Losing the health benefits that your job provided to you and your family can be a devastating loss for any family. Since 1986, COBRA laws have provided an opportunity for people who have left their jobs, voluntarily or otherwise (except those fired for gross misconduct), to continue their health insurance coverage while in between jobs. Overview of COBRA Benefits You will be responsible for the costs of continuing your insurance coverage through COBRA, and the coverage can extend to your spouse and dependent children. The period you are eligible for coverage will vary according to your situation and is typically between 18 months and 36 months. When COBRA coverage was introduced, it was the only option available to the many people who needed to continue health insurance coverage between jobs – one that came at a high price as employers were able to charge the full cost of the insurance coverage plus a two percent administrative fee. If you are accustomed to your employer paying some or the bulk of your health insurance premiums, you might be in for a little bit of sticker shock. Today, people have other options to consider, including special circumstances for Health Insurance Marketplace enrollment. There, you can compare options available to you and costs to see if COBRA is the best option for you – and it may be. Just make sure you are making an apples to apples comparison that considers terms like deductibles and coverage limits. Eligibility for COBRA Unfortunately, not all workplaces are required to participate in COBRA. For instance, the U.S. Department of Labor only requires employers that have 20 or more employees currently covered by the company health care plan to be required to provide COBRA protection, and you must have been eligible for coverage at the time your employment was terminated. Additionally, you may be eligible for COBRA benefits if you are the dependent of a COBRA eligible employee who lost coverage because of the death of the covered employee, divorce, or the covered spouse becomes eligible for Medicare. You do not have to be laid off or quit your job to be eligible for COBRA. In fact, you may be eligible if your hours are cut, rendering you ineligible for the coverage previously provided by your employer. What COBRA Coverage Involves COBRA coverage must be identical to the coverage employees receive as part of their benefits packages. For many families, this is perfect as they are already familiar with the COBRA coverages and limitations. For other families, it may be a good time to explore your options and find out what else is available. Just as with traditional health insurance benefits, children born to covered employees during the continued coverage period are eligible for immediate health insurance coverage upon their birth (as are those adopted by covered parents) though you must add the child to the plan according to the requirements of your health plan. You can lose coverage through COBRA if any of the following things occur: Additional Information For three decades, COBRA has proven to be a lifesaver for people who lost their jobs and needed health insurance. Some had preexisting conditions that would have rendered them ineligible to qualify for new insurance after a period of having no health insurance. By continuing coverage until new health care coverage began, this became a non-issue for many employees throughout the country. Today, people have more options available to them. While COBRA coverage continues to provide a lifeline for many, it is not always the best choice for all. Take your time and discuss your needs with your insurance agent to find out if there are other health insurance products that may serve your needs, and those of your family, better. At the very least you may find that there are other products that are more affordable during a time when money matters most.

Your COBRA Health Insurance Rights

View Resource Your COBRA Health Insurance Rights
Renting a new apartment can be exciting. However, it is important not to rush into things lest you make mistakes you will spend a long time wishing you could take back – like these listed below. When Choosing Your Apartment While some might think this is the easy part, it is not always as easy as it seems. It is especially true when apartment shopping from a distance. Make sure you avoid these mistakes, though, because you may discover the charming little apartment that you see as a diamond in the rough may turn out to be just a lump of coal. When Signing the Lease You should never sign a lease without carefully reading it first. Look for anything that isn’t as originally described for you and pay attention to the responsibilities you face as tenants for things like lawn care, snow removal, association fees, utilities, water, and garbage. Also be aware of regulations stated in the lease regarding deposits and first and last month’s rent. Do not sign a lease that you do not like. Some unscrupulous landlords have been known to change the parameters between what they tell you when trying to get you interested in the apartment and what they write into the lease. They may also add things that they never told you about into the lease. If you do not like it, don’t sign it. There are other apartments and plenty of honest landlords out there. When Moving In Before you move one box into the apartment, conduct a room-by-room walk-through inspection, with a video or still camera to document every scuff, nick, tear, and flaw in the apartment. Submit a copy with your lease agreement and save copies of your own for posterity. That way you can make a legitimate claim for the return of your security deposit at the end of your lease. You are also protecting yourself from claims that you did the damage. The final mistake that many renters make comes in the form of failing to get renters insurance. In most cases, it is a very small monthly investment – one that is worth every penny and then some for the liability protection alone. After all, you may be responsible for legal fees even if you are found innocent of liability claims against you. Renters insurance will cover your legal fees (up to the limits of the policy) as well as any judgments awarded against you. Additionally, renters insurance will help to replace or repair personal property that is damaged or destroyed in a covered event. Avoid these mistakes when renting your next apartment, so you can rent without regrets.

Renter Mistakes to Avoid

View Resource Renter Mistakes to Avoid
Regardless of how safe and careful you are as a driver, the odds are good that you will be in an auto accident, on average, once every ten years. People who drive in large, urban areas or late at night face greater risks of being in accidents, but the nationwide average is once every ten years. That means you need to make sure you have the right kind of coverage to protect your interests if and when an accident occurs. Difference Between Comprehensive and Collision Insurance Comprehensive coverage refers to damage done to your vehicle by something other than a collision. This includes things like: Collision coverage applies to damage resulting from a collision. This includes things like: Depending on the terms of your policy, collision coverage can be used to pay for repairs to your vehicle when another driver is at fault but is slow to pay. In these instances, your insurance will cover the cost of repairs and then seek reimbursement from the other driver’s insurer. When Collision Coverage Makes Sense Collision coverage not only makes sense but is critical, for some people. These instances include: Times when Dropping Collision is Appropriate People with newer cars often keep collision coverage to protect their investments – even if your car loan is paid off. That does not mean it is always in your best financial interests to do so. There are occasions when it might not be as financially beneficial to have collision insurance, like in these instances: That said, not everyone can afford to go without insurance coverage even when these rules apply. There are no hard and fast rules; that is why it is best to work closely with a trusted insurance agent to determine what your needs are when it comes to auto insurance protection. After all, insurance is about protecting your financial interests.

Dropping Collision from Your Auto Coverage

View Resource Dropping Collision from Your Auto Coverage
Technology is advancing at an incredible rate. This advancement offers benefits in many ways, including the fact that printer prices are getting lower and lower every day. The bad news, though, is that the cost of ink is still pretty expensive. The cost of printer ink is an issue that all of our budgets face these days, and along with it comes decisions and adjustments that we need to make. Sometimes, for instance, we may be tempted not to print out important documents just to save ink. We might even forego printing out money saving coupons as we have to lay out an inordinate amount of cash for ink just to cash in on those savings. In this article, we take a look at the high cost of printer ink and point out money-saving tips and hints that you might not already have thought of or implemented. Overview Cost of Printer Ink First, why is printer ink so expensive? Ink technology costs a great deal to develop, which includes investments in time, research, and engineering. Printer ink must be formulated to work at a temperature of up to 300 degrees, be squirted at an amazing rate of 36,000 drops per second through a printer nozzle that is one-third the size of a human hair, and then dry on paper instantaneously. Add that to the fact that the ink itself must remain in its liquid form for one to two years while sitting on the store shelf or at your home, and you can see that the whole nature of printing with ink is complex. In essence, what you are paying for is image quality as well as reliability. Although generic refill products can be substantially cheaper than regular ink cartridges, they are not always as reliable as their officially manufactured counterparts, and they may produce inferior print quality. Tips for Saving on Printer Ink When it comes to saving money on ink, the bottom line is to focus on reducing the amount of ink you use. Take a look at the following tips that will help you conserve ink while saving money into the bargain: Perhaps the best way of all to save money on printer ink is by going paperless. Printing documents is an expensive business, however, through following the tips above, you can ensure you get the most out of your printer ink — and your wallet.

Cost of Printing Got You Down?

View Resource Cost of Printing Got You Down?
Caring for a special needs child is one of the most rewarding things a parent can do. As difficult as it may be at times, the rewards know no bounds. However, you must address the financial realities of special needs children so that you can protect them while they are young, as they age, and so that they are cared for when you are no longer here. Financial Challenges of Special Needs Children NYDailyNews.com reports that the average cost of raising a child to the age of 18 is $250,000. If you have a special needs child, those costs can easily exceed ten times that amount. Medical bills alone for a child with severe autism can accumulate a staggering three million dollars in medical bills over the course of a lifetime. With that in mind, it is even more critical for parents of special needs children to come up with an effective financial plan that will protect their children’s interests now, and in the future. Unfortunately, many parents in such a situation do not know where to begin. These steps will help you prepare for the financial realities of raising a special needs child without greater financial confidence. Fine Tune Your Expenses and Spending The reality of a special needs child is that it often requires one parent to stay home as the primary caregiver or to sacrifice a great deal of career potential due to missed days at work, loss of productivity, and the many distractions from work related to your child. The loss of income is not simply suggestive. Mint reports that women who are raising children with autism earn 35 percent less than those raising children without the condition. Those changes occur before the additional expenses begin to mount – which means you need to cut your costs and standards of living while making the financial adjustments necessary to lower your monthly expenses. That can include things like evaluating mobile phone plans and comparing costs, identifying services you do not utilize fully and eliminate them, kicking cable to the curb and investing in a streaming device instead, and utilizing local libraries for books, magazines, music, and movies. The bottom line is that you must create a budget that allows you to live, cover your expenses, and set some money aside for your child’s future. Preparing them for Adulthood One of the most important things you can do to prepare a special needs child for adulthood is to establish a “Special Needs Trust” for your child. In some instances, families raising special needs children qualify for some assistance from the government, with stipulations and certain financial limitations. Creating this trust allows you to put savings, financial gifts, and any insurance settlements away to provide a financial future for your child. It is important to put these funds into a trust so that the money is held secure for your child’s future without jeopardizing your child’s eligibility for federal benefits that help with the costs of his care. Mint reports that even as little as $2,000 in your child’s name can prevent your child from receiving SSI and Medicaid benefits. Building a savings trust is the foundation for any long-term plans you will make for your child and one of the most important things you can do. Even if you do not have funds to invest in the trust now, create the fund, and invest a little at a time over the years (and encourage others to make gifts to the fund too). It will become the cornerstone of the financial provisions you leave behind to generate income for a special needs adult who may be unable to provide for him or herself. Arranging Care when You are Gone Make sure to create a will. That is critical while your child is young but also important as your child becomes an adult. The truth is that many special needs individuals who receive proper care and attention have conditions that will allow them to live long lives – meaning your child will likely outlive both parents. You need to have a plan in place to provide care for your child when you are no longer there to do so. That includes designating a guardian for your child. When your child is young, this is the person who will provide direct care for your child while also making financial and medical decisions on behalf of your child. The other person you need to designate in your will is the trustee who will be responsible for managing the funds of the trust so that your child has financial protection. The trustee will also determine investment choices for the money so it is important to choose someone who can make sound investing decisions. Make Wise Investments One of the first investments you need to make is an investment in life insurance that will provide financial assistance to your child if something happens to either or both parents. That is one of the most important investments you will make on behalf of your child. Additionally, consider investments that provide easy liquidity and that can generate income. This includes things like real estate, which can generate rent and stocks that pay dividends. The key is to start making plans now to safeguard your special needs child now and as he or she becomes an adult who still needs specialized care and financial support. These steps will help you get started on the right foot.

Preparing Financially for a Special Needs Child

View Resource Preparing Financially for a Special Needs Child
Real estate agents fill important roles in the home buying and selling process. Finding the right real estate agent for your situation may take a little time, but it is worth the investment of time to ensure that you are happy with the results of your real estate transaction. Why Do You need a Real Estate Agent? Buyers and sellers alike benefit from the services real estate agents have to offer. As a buyer, you will receive information about homes that might not show up on websites and in real estate magazine listings. By telling your agent exactly what you are looking for in a home, he or she might be able to help you in your search. Your agent may be able to show you homes that haven’t even appeared on these venues yet, giving you an opportunity to make your bid before others even know about it. When the time comes to make an offer to buy a home, your real estate agent can help you present your offer and get all the relevant ducks lined up to close the sale. That includes things like home inspections, title searches, closing costs, and other necessary components. For sellers, the story is different. A high energy real estate agent will do everything in his or her power to maximize your home’s exposure. That includes things like staging the home, hosting open houses, and showing your home frequently to interested buyers. These could be all things you may lack the knowledge, skills, or energy to do on your own. It can make the difference between getting the offer you are looking for and settling for one that is less than ideal. A dedicated real estate agent can help you by offering advice that might help boost curb appeal, make the home more marketable, and encourage a faster sale for your home. Types of Real Estate Agents Many people often get confused when they hear the term real estate agent. It means different things to different people on the street. However, they have very clear meanings and distinctions within the industry. There are three primary types of real estate professionals:
  1. Agents

  2. Brokers

  3. Realtors

  4. Buyer’s Agents
The terms, while often used interchangeably, actually have very different meanings. Real estate agents are professionals who have taken select classes, applied for, tested for, and received state licensing to become an agent. However, they must work with a licensed broker and participate in continuing education courses along the way. Brokers are required to take additional courses and complete more intensive examination. They can go into practice for themselves. However, they must continuously educate themselves in the field to remain active brokers. Realtor is a term that is set aside for real estate agents and brokers who have committed to a higher standard of accountability and become paying members of the National Association of Realtors (NAR). They are defined by a strict code of ethics in representing buyers and sellers alike. Buyer’s Agents are real estate professionals who only represent buyers. That helps to erase any appearance of conflicted interests among real estate agents and places some buyers in an easier frame of mind. These professionals can earn the Accredited Buyer’s Representative designation through the NAR by taking specific classes. Picking the Right One There isn’t necessarily a right or wrong professional to choose to represent you when buying or selling your home. In this field, personality may make the difference as can commitment and work ethic. You want to choose an agent you click with, who will listen to what you are looking for and help you find it. You do not want to spend an endless line of afternoons exploring homes that are outside of your price range or do not meet your requirements, for instance. Look for agents you click with and ask around about their reputation for dealing honestly and fairly with buyers and sellers (if you happen to be selling). Questions to Help You Make a Decision You might want to have a few questions in mind to ask an agent you are considering for selling your home, like these, ahead of time: Finding a great real estate agent is easy when you are looking for specific things. Some of the most important details to consider are reputation, energy, and enthusiasm for meeting your needs, whether you are buying a home or selling one.

Finding a Real Estate Agent

View Resource Finding a Real Estate Agent
With new car prices are on the rise, consumers are paying closer attention to the sticker price at the dealer’s showroom. Unfortunately, they are not providing as much clarity as most of us would prefer. One of the problems is that different option packages can cause wild fluctuations in the prices of cars that are almost the same in every other way. That is why you need to understand what you are reading – to ensure you are getting a fair deal from the dealership and a good price on your new car. Dealer Invoice The “Dealer Invoice” number tells you what the dealer reports to have paid for the car. Keep in mind that this price does not include any rebates the manufacturer might have offered the dealer or ‘holdback’ incentives manufacturers provide to dealers for actually selling a vehicle. When you include those two items, the dealer’s out-of-pocket cost might be thousands less than the Dealer Invoice price. Depending on the popularity of the vehicle, the dealer’s inventory levels and the time of year, the dealership may be more or less inclined to sell below or hold firm to their invoice price. The bottom line is that you should not take for granted that “Dealer Invoice” is the starting point for sales negotiations. Options and Add-Ons For the most part, the least expensive version of a new car is the plain Jane version that has no frills, no bells, and no whistles. Extras add extra costs to the vehicle. Options installed at the factory can make the car more attractive to own and drive. However, they can also add significant dollars to the sale price of the car and your monthly payment. Sometimes, vehicle options are bundled into packages. An SUV, for instance, might have an off-road package or even an entertainment package that includes things like DVD players or even gaming consoles to keep kids from getting bored on the long drive to grandma’s house. These things add value to the vehicle and increase the price tag quite a bit. Since options are part of the car when it arrives at the dealership there usually isn’t much negotiating room as to whether they are part of the vehicle or not. The dealer might be willing to be more flexible in what he charges you for those enhancements. Add-ons are similar to options, are added at the dealership and not by the manufacturer. They include things like pinstripes, undercoating, fabric protection, extended warranties, and VIN etching. Some of these items simply aren’t worth the costs for the rewards you get in return. Do your homework before paying extra for these types of offerings or negotiate to try to get them for free if they are something you want. Incentives and Rebates These are the hidden goodies you want to know about if you are comparing prices. Some of them may already be reflected in the bottom line price of the car window sticker so make sure you are not expecting them added or deducted at the end. In fact, that is one way some lure potential buyers into their dealerships. They advertise about available discounts, incentives, and rebates, then when you come in, they lower the boom and let you know that those discounts are already factored into the advertised price of the car. That is what the price on the window sticker shows too. It just seems confusing to buyers who are often expecting savings below the bottom line on the window sticker. If you are negotiating for a lower price, the best practice is to walk in with the number at the bottom of the windshield and begin the negotiations from there. Let the sales person you are haggling with know that that is where you are beginning the negotiation process and that you are prepared to walk if they even discuss prices above that line. It can easily become too many numbers to mentally manage – especially for mere mortals who do not have built-in calculators in their brains. Other Things You Need to Know There are other bits and pieces of information on the window sticker that are simply useful to know. These include things like the engine specs, estimated fuel economy ratings, and even your estimated yearly fuel costs. Buying a car does not have to be a huge hassle – especially if you know the make, model, and options you want before walking into the dealer. Do your research regarding the prices in your area for similar vehicles and packages and walk into the dealer with a price in mind. If the dealership will not match your number, be prepared to move on to the next one. While it might take some serious shopping, the odds are in your favor that you will eventually find the right combination of costs, options, and add-ons for a price that’s sure to make you smile.

Reading a Car Window Sticker

View Resource Reading a Car Window Sticker