Susan Paige

Top Creative Ways to Make Extra Money Online

April 12, 2019 By Susan Paige Leave a Comment

For you to live a financially free life, you have to get in control of handling your finances. When you talk about being in control of finances, many people think of ways to reduce expenses and such things. The truth is that there’s another way, but it’s about adding money to your life so you can have freedom on your finances and maintain your lifestyle the way you want it.

Here are some creative ways you’ll make extra money:

Selling free stuff from Craigslist

In Craigslist, you can be able to exchange your goods and services for money, and you can also get some freebies there. If you have some items in your home or office that you don’t need anymore, or you want to relocate and want to dispose some of the items, you can always earn from them when you choose to use Craigslist.

When people sell low-quality items in Craigslist or anywhere else at a lower rate, you can always buy them, spruce them up, and resell them at high rates to achieve great profits.

Sell your photos.

If you’re a photo museum-worthy, or you just have a keen eye, you can always sell your photographs to photo agencies such as Adobe, iStock, Shutterstock, and many others. You don’t have to be a professional to do this, and you get paid a certain percentage for every single download.

Rent out your room.

Do you have an empty or spare room in your living space? Do you want to earn some side income? Whether you answered yes or no, the truth is you can earn from any spare room when you consider renting it out.

An Airbnb will help you out if you need to rent out either one room or the entire home. If you’re a traveling person, and you’re planning to travel the whole year, renting out your apartment will help you earn extra cash and help you pay for all the adventures you want to have.

Sell your skills.

What’s your talent? Can your voice make Simon Cowell cry? Are you an artist? It doesn’t matter, but one sure thing is that your talent can earn you that extra coin you’re looking for. If you’re wondering where to sell your skills, the money sack is the site to visit and learn a lot about making and saving money.

Teach classes online.

What are you good at? You must be having a skill that many individuals may find helpful in their lives. Go out of your way and do it. It’s one productive way you can do to earn an extra income.

Conclusion

Do you have a day job, but would wish to have an extra income? It’s not as hard as you might have thought. You can do extra work online after your day job, or during the weekends and the holidays to earn extra income. Be in charge of your finances by earning extra income.

Best Whole Life Insurance Policies This Year

April 10, 2019 By Susan Paige Leave a Comment

Much like its name suggests, a whole life insurance policy is a plan intended to cover you for the remainder of your life. Selecting a whole life insurance plan that’s up to the mark requires thorough research and a firm understanding of the options available. Fortunately, industry specialists have organized a list where you can find the best life insurance rate quotes for 2019. Here are the providers they’ve found.

Northwestern Mutual

Earning a coveted 4-star rating from industry analysts, Northwestern Mutual thrives as a whole life insurance company. Their policies promise dividend payments, premiums, fixed rates, and affordability. For seniors, specifically, Northwestern Mutual’s whole life insurance plans are very competitive.

Guardian

Much like Northwestern Mutual, Guardian pays policy dividends. From cash value accumulations to tax benefits, Guardian’s whole life insurance plans hold tremendous appeal. Should any unforeseen circumstances arise, Guardian’s guaranteed insurability and accidental death benefits seek to protect consumers against unknowns.

New York Life

New York Life policyholders reap the following benefits: optimal financial stability, high dividend returns, and financial obligations. Working with clients rather than for them, New York Life takes a consumer-oriented approach that’s rooted in transparency. Touted as a trusted name in the whole life insurance game, New York Life boasts a prestigious reputation.

MassMutual

MassMutual’s whole life policies offer death benefits, high cash value, and policy dividends. Used primarily to supplement retirement income, MassMutual life insurance plans contribute significantly to revenue. Above all else, MassMutual regards the beneficiary with as much consideration as they do the policyholder.

Transamerica

With Transamerica’s whole life insurance plans, funeral costs are covered, cash accumulation is deferred, premiums are guaranteed, and death benefits are honored. Transamerica’s 4-star rating proves their willingness to make good on these promises. Ideal for those looking for final expense coverage, Transamerica’s accelerated policies seek to alleviate the stress that accompanies uncertainty.

State Farm

Applauded for the wealth of benefits their whole life insurance plans offer, State Farm is renowned for their client-driven policies. Lifetime coverage, cash value, and level premium amounts are a few trademarks of State Farm life insurance policies. Their biggest draw, however, is not having to pay premiums throughout retirement.

Mutual of Omaha

Highly sought-after by those with life-threatening illnesses, Mutual of Omaha whole life insurance plans don’t require medical exams. Available to both adults and children, Mutual of Omaha serves a vast clientele. However, they’re most prominently known for their financial strength and low dividend payments.

Ways To Improve Your Credit Score

April 9, 2019 By Susan Paige Leave a Comment

Nowadays, personal loan apps are selling like hot cakes. But this doesn’t mean that personal loans are available to anyone. In fact, personal loans are intended for people looking to consolidate debt or fund a huge expense such as home remodeling.

What Is A Personal Loan?

It is defined as an unsecured loan without the need for collateral down or a traditional credit check to qualify. Perhaps some lenders might just perform some soft credit check to determine if the applicant is credit worthy. Moreover, a personal loan may have lower interest rate compared to a credit card, which serves as a low-risk alternative when you need quick financial assistance.

How Credit Score Affects Interest Rates

When you borrow money, the repayment amount will be affected by the interest rates. Thus, loan payments would include the interest rate and principal. But it would be easier to repay low-interest rates due to the lower monthly payment you have to deal with.

Lower interest rates are very important because you can pay less money to the bank to settle your loan. In order to credit your credit worthiness, banks use credit scores as one of the factors to set your interest rate.

Banks Use Credit Scores

At some point, credit scores range from 300-850. If you have a higher credit score, it means that you are good at handling credit in the past and you will likely pay new credit on time.

Otherwise, if you are having a lower credit score, it means that you have made mistakes in the past and that you may not be able to pay everything when you are going to receive new credit.

The interest rates are set by banks on the basis of the risks you pose. If you have a higher credit risk, it means that you will receive a higher interest rate as well. So if you have a low credit score, applying for another personal loans for bad credit will have a bigger chance of getting denied. Those with low credit risk will be given lower interest rates.

Bad Interest Rate

A free copy of your credit score will be given by banks when you are going to get approved for a less favorable interest rate. This will include a few details about the factors affecting your credit score.

In order for you to get better interest rates, it is important that you take a few months working to increase your credit score. This is important for such as a major loan like a mortgage with low credit score can increase your monthly payment by hundreds of dollars and thousands more in interest over the duration of the loan.

Improving Your Credit Score

If you are planning to improve your credit score, there are 3 things that you can do to make a difference.

Set Up Payment Reminders

Paying on time is among the biggest contributing factors in improving your credit scores. There are banks that provide reminders via online banking portals sending you an email or text message when your payment will be due. You could also enroll your account via automatic payments via credit card or loan providers so that payments will be automatically debited from your bank account.

Reduce The Debt Amount You Owe

Instead of focusing on improving your credit score, it might be more satisfying to reduce the amount that you owe. That being said, you need to reduce if not stop using credit cards. Simply use your credit report to make a list of all our accounts and go online or check the latest statements. This will help you determine how much you owe on each account and the interest rate they are charging. Thus, you need to create a payment plan to put most of your available budget for debt payments of the highest interest cards first. On the other hand, you can maintain minimum payments on other accounts.

Payment History Tips

Pay bills on time – If you have a delinquent payment even for only a few days late, this will have a major negative impact on your credit scores.
Avoid missing payments – The longer you pay your bills on time after being late the more it will increase your credit scores. So you will soon see older credit problems to fade as time passes, showing only recent good payment patterns.
Take note that a collection account paid off will stay on your credit report for 7 years.
Contact your creditors or ask for help from a legit credit counselor.

How to Buy Your Next Vehicle the Right Way?

April 9, 2019 By Susan Paige Leave a Comment

Let’s just say that buying your first vehicle didn’t go exactly as planned. Although you had a clear idea of what you wanted for a first car, you didn’t expect the process to be long, tedious and well, stressful. But all that is a thing of the past and now, you’re ready to take another chance at buying a vehicle. Only this time, you want to do everything right—from picking out the right vehicle to finding the right car loan.

How much should you really spend on a car?

The first time you bought a vehicle, you knew you had to set a budget—and so you did. But at the end of the purchase, you still found yourself spending more than what you should have. So, how much should you really spend on a car?

The answer is simple: an amount that you can afford. Experts say that you should never spend more than 25% of your monthly household income on your cars. This includes fuel, monthly car loan payments, maintenance and car insurance. You should set aside 15% of this percentage to monthly repayments and divide the remaining 10% on other vehicle costs. You can simply use a car loan calculator to come up with the right figures.

What car should you buy?

When you bought your first car, you knew exactly what you wanted: something that will scream “hey, I have a new car and I’m cool for it.” But as you started using your car, you realized that it was too small and didn’t have the features that you needed.

A lot of first-time car buyers make the same mistake, but you can do it right this time by considering your needs first. There is no one-size-fits-all in cars. This means that the right car will depend on who you are and what you need. Here are some of the things that you should think about before looking for options:

The number of passengers that usually travel with you
The type of fuel used and how it is consumed
The type of roads you usually drive in
The cargo space that you usually need
The size of the car compared to your garage or parking space
The safety features, especially when you have children as passengers

Do you need a new or pre-owned car?

The decision to choose between a new and pre-owned car can be tricky, but it all boils down to your need and budget. Of course, a pre-owned car is a little easy on the budget, but you also need to consider its condition before buying one. Since not all drivers take good care of their car, you may face the risk of buying a car that’s been overused and even abused by its previous owner.

If you go for a brand new car, on the other hand, you need to make sure that you have the budget for it. Of course, you can always take advantage of a car loan, but you also need to be mindful of your monthly repayments to not get behind and suffer the consequences.

Now, if you want a new car but don’t have the budget for it, you can actually opt for a certified pre-owned car. These vehicles are priced lower than brand new cars because they’ve already been used, but you can guarantee that they’re in good condition because they need to meet some criteria before being listed in the market. These cars also have some warranty left so you can take advantage of that for any repairs you might need.

What do you need to do to get a good deal?

Before going to the dealership, it’s very important to get all the pricing information on the car that you’re eyeing on first. You can easily find prices in car dealership websites and they should include invoice prices and manufacturer suggested retail prices for new cars and wholesale prices and dealer’s asking prices for a used one. These figures will help you negotiate prices with your dealer.

While doing your research, you can also look for possible discounts in advance. For instance, the end of the year is one of the best times to buy a car since a lot of dealers are looking to close out as many deals as they can. This means that you can get the car you want at a lower price. You can also see if your dealer offers special discounts during sale events.

So, are you ready to go shopping for your next car and do it right this time?

Investment and economic growth

April 8, 2019 By Susan Paige Leave a Comment

Investment is one of the aspects that play a key role to economic growth of a any nation. When a nation has few or no investment, then its overall GDP is slow. For a country to increase its overall gross national product, then the rate of investment should be steadily increasing. In a country, citizens can participate in investment as well as the state can invest in various projects in the country.

When individuals invest, the sum total of their output adds up to give the overall GDP of that country. Citizens can choose to invest in various industries that exist in the country. In such a case, it is the duty of the state to give financial and economic empowerment to its citizens in order to facilitate this process. Through the relevant ministries, the government can choose to provide capital or start up grants to enable the citizens to invest and contribute to the overall GDP of the country. Most of the countries that have well established economies have created proper systems where citizens are highly innovative and entrepreneurial.

When the government invests, it does so with an aim of providing essential services to the people of that state. Public investment is a wide topic which is well explained under the whole issue of public finance. Public expenditure is the process whereby the government uses its funds in for the social welfare of the citizens. Since every citizens pays tax, the benefits of public expenditure are bestowed upon everyone. Government services are provided irrespective of the tax that one pays. This is why it is termed as social welfare.

For people to invest and add up to the gross domestic product, then their level of savings should be highly. Under public finance, savings and investments are directly related. If there are no savings, then there are no investments. The amount of money that people keep aside for investment is that which is used in investment. The circular flow of income puts savings as a leakage in the system while investments are an injection to the system.

When people invest, the amount of money in circulation in the economy increases and this brings about the level of growth in the national income of a nation.

Perhaps someone may ask, “How does a government invest?” for governments, public expenditure refers to investments in projects that benefit the state. Some of these services include roads infrastructure, telecommunications, healthcare, education and security. It’s the citizens who are employed to work on the projects that the government creates, in this case, it is proper to note that public expenditure brings about employment opportunities. It is this employment that increases the gross domestic product of the nation.

For this reason, it is important for people to be taught about the importance of savings and investment. This is important knowledge not just for personal benefit but for the state at large. Investments enhance economic growth of any nation. Without it economies crash.

7 Reasons Why ELSS Funds are better than Other Tax Saving Investments

April 8, 2019 By Susan Paige Leave a Comment

Mutual fund companies offer ELSS under the tax saving mutual funds plans. Earlier ELSS was entirely exempt from any kind of taxation. Under the present tax regime, the ELSS scheme returns are now subjected to LTCG tax for returns over 1 lakh a year under section 10 of the income tax act. This somewhat does affect the ELSS returns yet ELSS continue to be the preferred mode of investment of many as the net yields are still high. The tax deduction benefits of up to Rs 1.5 lakh for the contribution made in ELSS schemes are applicable as before, under section 80 D of the income tax act.

The benefits of tax saving mutual funds are often compared with other tax saving investment plans like retirement plans, PPF, pension plans, ULIPs.

The 7 features of ELSS or tax saving mutual funds that typically score high among other tax saving investments include the following:

ELSS offer high tax benefits

Though the government now taxes ELSS returns for returns over one lakh in a financial year under LTCG taxation, the contribution made in ELSS schemes remain eligible for tax deduction benefits under section 80 D of the income tax. Section 80 D lists ELSS among the tax saving mutual funds and provides for tax deduction benefit up to Rs 1.5 lakh a year. This implies that you can deduct up to a maximum of Rs 1.5 lakh from your income before subjecting it to the tax rates. Lower income will result in a lower tax amount.

Apart from the tax deduction benefit, if you withdraw or derive less than Rs one lakh yield from your ELSS plan in a financial year, you will not be required to pay tax on that amount.

ELSS have lock-in of three years

The long term tax saving investment schemes like retirement plans, Samriddhi plans, pension funds, ULIPs mostly have lock-in of five or six years and a long term tenure of fifteen years. PPF funds allow withdrawal subject to limits only from the sixth year onwards. In comparison to the long term tax saving investment plans, the tax saving mutual funds or ELSS has a lock-in period of only three years. Investment in the tax saving mutual funds can be made in the mode of frequent SIPs like the monthly SIPs.

ELSS units are open-ended

Tax saving mutual funds or ELSS mainly invest in equities as equity investments offer the tax saving advantages apart from several other investment advantages. ELSS scheme comprises of plan units. One unit of ELSS plan is the minimum amount of investment required to invest in the ELSS plan. The mutual fund companies calculate the NAV of the ELSS units at the closing of each day and put it up on their websites for investor information. ELSS units can be freely redeemed or taken up on their present NAV values.

ELSS is an opportunity to invest in equities

Tax saving mutual funds or ELSS offers investors opportunities to invest in the top performing equity stocks. The other way to invest in equity stocks is to invest directly in the stock market. ELSS fund portfolios are planned portfolios that comprise apportioned equities backed by strong investment intelligence. ELSS reduces the investment risks and yield high gains.

ELSS are yielding double-digit high returns

Tax saving mutual funds like the ELSS have investment horizon objective of at least three years. The returns of ELSS schemes start picking up after completion of one year, and by the end of three years, top ELSS schemes offer high returns above 18% on the average. The five-year returns can be even higher above 20% on the average. These return yields are high when compared to returns yielded by the options for long term tax saving investment like PPF that yield 8% to 9% returns. No other tax saving investment schemes offer returns to the tune as yielded by the tax saving mutual funds or ELSS.

ELSS offer a wider choice of investment preference

Investors can choose among the many tax saving mutual funds or ELSS as per their flavors of risks and preferences. ELSS portfolio can comprise of equities belonging to the same or different categories of market capitalization. Thus investors can choose among the large, medium, small or tiny capitalization equity type portfolios or the mixed cap type ELSS scheme portfolios.

ELSS funds offer flexibility like no other investment option. ELSS is often compared to the ULIPs which invest a part of the premium in the capital market. The structure of ULIP portfolio does not offer the variety of choices as is offered by the tax saving mutual fund schemes or the ELSS. ULIPs are however changing now especially under the instructions of SEBI to revamp the portfolio structures. New Age ULIPs are trying to match the flexibility of the tax saving mutual funds. However, as ULIPs have a different structure and objective, matching the ELSS on flexibility is a challenging proposition.

Before making an investment choice investor should read about the fund plan objectives, features, and characteristics and make an informed choice.

ELSS are actively managed fund portfolios

Tax saving mutual funds like the ELSS are managed fund portfolios. The mutual fund portfolios are actively managed by the fund manager assisted by a team of fund researchers. The mutual fund management team actively manages the portfolio and consistently pursues to outperform the benchmark fund for the ELSS category. The fund is constantly assessed on parameters of risk and returns against the market indicators. Top performing ELSS funds maintain stability and consistent returns even under stock market volatility as the fund risk is diversified. The loss from one stock is offset by the gains from another stock of the ELSS scheme portfolio.

To Conclude

It is best to invest in the tax saving mutual funds schemes as these are equity-linked schemes and are eligible for tax benefits based on informed choices. ELSS also has a low lock-in, flexibility, liquidity, high returns, SIP, and SWP features. Access the mutual fund’s aggregator portal to get all the information you need on the top mutual funds for tax saving.