Municipal bonds have been considered one of the safer investments for years, and the added bonus of tax-free interest is hard to beat. The days of considering a municipal bond as safe is over though, as the use of the bond as a vehicle for public projects has radically changed, and it is no longer possible to know which ones are really safe any longer.

What has changed is what the bonds are being used for and the economic climate we continue to live in.

One recent example, if you haven’t heard of it, is Tison’s Landing.

This is a place where municipal bonds were issued to pay for a property developer to place the infrastructure of a planned community. They would put in the electricity, roads, etc., and theoretically, when the houses went up the residents would pay for the interest on the bonds.

In the beginning, the developer would pay the holders of the municipal bonds the interest until the homes went up and were occupied. The problem? No one bought the homes, and there is a piece of property ready for homes to be built with no one interested in buying them.

So if no one is building homes, what happened to the interest on the municipal bonds? Is the developer still paying it? No the developer isn’t. The holders of the municipal bonds, usually pension funds or mutual funds are the ones paying the interest, and many of them are getting rid of the bonds at up to 70 percent losses so they can use their capital in growth areas.

This is complex, but the bottom line is municipal bonds are no longer the places of safety they used to be, and because of the ongoing economic disaster, you can’t be sure which region or locality will suffer next, or even know how to research to find out if it’s vulnerable. There are too many variables and unknowns at this time to get the needed data to make an informed decision.

A growing number of financial advisers are recommending their clients to get out of municipal bonds. Many of them are being used to back up developments like the one mentioned in Florida above, and if any city is near bankruptcy, you’ll find yourself in a similar situation the mutual and pension funds are now in.

When it comes to borrowing a loan at such tough economic times as today, considering the fax-less payday loans may be one recommendable action. This is because it is very comfortable to get one when unexpected things take place. Therefore, it may prove to be really helpful to make use of such type of loans. But, what actually are fax-less payday loans?

Well, as a matter of fact, it is basically a cash advance loan, and such loans are meant to help the borrowers in case of emergencies. Then, what does it mean by fax-less? Well, this means that to borrow such loans, there will not be any requirements of documents which may prove to be quite exhausting to go through.

It is possible today for the payday loan lenders to approve the borrowers’ request for loans without requiring the borrowers to fax any document, thanks to the internet and the possibilities that seem to be endless. Yet, there are also a wide variety of advantages that the borrowers may get from the fax-less payday loans, which will be mentioned further below.

The first advantage of fax-less payday loans is obviously the convenience in applying for the loans. As a matter of fact, it is even possible for the borrowers to apply for such loans by making use of the online application process.

The next advantage is that the fax-less payday loans are usually fast to obtain, 30 minutes or less in most cases. Then, the borrowers will be able to see the money in their bank accounts the next business day.

The third advantage is that it is fax-less indeed. The borrowers who intend to apply for such loans will never be required to send any document to whichever party that may be involved in the loans. And the last advantage is that borrowers are not likely going to have to worry in case they need some cash all of a sudden. There is a good chance that they can always apply for fax-less payday loans.

When taking into account the twin problems of putting away for savings and reducing debt, many times we’re faced with a choice of which one is or should be the priority.

Normally at this point of the conversation, people will immediately say they can’t do one or the other, because debt is taking every penny they have; making it impossible to build at least a fund up for safety in case of a financial emergency.

It’s the old catch-22 many people face, and yet, a lot of people have escaped this seeming trap they’ve fallen into, and so can you.

In this post we won’t deal with all the practicals, as we must deal with something else first, and that is making a decision on whether to pay down your debt or build up a savings.

Almost everyone can go through their finances and find places they can cut back on in order to release up some money to put away to build up at least a small nest egg.

The question becomes then, should that extra money be put into savings or paying down debt. I believe putting away for savings should be the first step; at least until you have enough for some minimal financial protection.

Paying down debt is a huge psychological boost, and a priority, but if you don’t have something put away, you’re one major, or even minor, event away from losing just about everything.

For the most part having a nest egg or savings account is for safety purposes for an unforeseen financial challenge. Things like unexpectedly losing your job, and other such experiences.

If you’re paying down your debt but lose your job, you may have less debt, but you will have an entire different circumstance to deal with if you’re desperate and have absolutely nothing to fall back on.

This is the reason I think we should all have savings as a priority, while continuing to pay down debt at minimal levels until we do. At least get something put away first, and then work from there on the debt.

Once a fund is financed some, you can then possibly split the amount and slow down on the savings fund in order to start relieving yourself of some of your debt.

Try this and I think you’ll feel a lot better and prepared for what comes in life for you. If you have significant debt, it’ll take time to pay it down no matter what you do, so focusing on savings first should be the priority, with paying down debt right behind it.

Obviously if you have enough extra money a month to do both, that would be the best situation. But most don’t, and if you have to choose, I would suggest the savings first and the debt second.

Many people do not always have enough money for all of things that the person would like to do.  Major decisions such as adding an addition to a home, obtaining vehicles without going to a dealership, purchasing expensive equipment, or making some other major purchase can be very expensive and it may be impossible for the person to come up with the entire amount needed all at once.  This is the reason why personal loans are so important to many people, because it helps the person obtain the things that they need quickly with loans that typically have much lower interest rates than the typical credit card.

What Are The Loans Used For?

A personal loan, different from a cash advance, is obtained by the person for use for personal expenses.  In many cases, the person is prohibited from using these loans for business purposes and may find themselves facing legal action if they are found to have used the loans to fund a business in ways that are not allowed under the loan agreement.  A personal loan may be obtained by practically any person that is in need of a loan and is repaid in monthly installment until the loan has been completely paid back.

The terms of a personal loan will depend on the amount of the loan and what the loan is being used for.  Personal loans for obtaining vehicles will be paid back to the loan company at the same rate as a personal loan for building an addition to the home.  There are short term loans that can be paid back over a year and long term loans that can be repaid over a five year period. Payday loans are also technically personal loans, with a much shorter repayment period.

How Hard Is It To Find A Personal Loan?

Finding a personal loan will not be difficult for most people that have good credit because most lending institutions love to lend to people that have high credit scores.  For faster searching, the person may want to look online for the type of loan that they desire and obtain quotes from the companies that would be willing to provide them with the loan.  The interest rates for personal loans are generally more favourable than credit card interest rates because many people will typically have collateral for the loan such as personal property, which helps to ensure that the loan will be repaid in a timely manner.  Finding the right type of personal loan will take a small amount of time, but the benefits to the person that obtains the loan can be immense.

Many people do not always have enough money for all of things that the person would like to do. Major decisions such as adding an addition to a home, obtaining vehicles without going to a dealership, purchasing expensive equipment, or making some other major purchase can be very expensive and it may be impossible for the person to come up with the entire amount needed all at once. This is the reason why personal loans are so important to many people, because it helps the person obtain the things that they need quickly with loans that typically have much lower interest rates than the typical credit card.

What Are The Loans Used For?

A personal loan is obtained by the person for use for personal expenses. In many cases, the person is prohibited from using these loans for business purposes and may find themselves facing legal action if they are found to have used the loans to fund a business in ways that are not allowed under the loan agreement. A personal loan may be obtained by practically any person that is in need of a loan and is repaid in monthly instalments until the loan has been completely paid back.

The terms of a personal loan will depend on the amount of the loan and what the loan is being used for. Personal loans for obtaining vehicles will be paid back to the loan company at the same rate as a personal loan for building an addition to the home. There are short term loans that can be paid back over a year and long term loans that can be repaid over a five year period.

How Hard Is It To Find A Personal Loan?

Finding a personal loan will not be difficult for most people that have good credit because most lending institutions love to lend to people that have high credit scores. For faster searching, the person may want to look online for the type of loan that they desire and obtain quotes from the companies that would be willing to provide them with the loan. The interest rates for personal loans are generally more favourable than credit card interest rates because many people will typically have collateral for the loan such as personal property, which helps to ensure that the loan will be repaid in a timely manner. Finding the right type of personal loan will take a small amount of time, but the benefits to the person that obtains the loan can be immense.

You may want to forgo going to a local business for your payday loan needs, as some major banks are now offering that as one of their latest services, and it would be worthwhile to see if they provide lower rates to meet your needs.

Wells Fargo, Fifth Third and US Bank are among three banks now offering the services, although what it costs to use the services at the banks isn’t clear for Wells Fargo and US Bank, at Fifth Third they do have things in place to check out.

For example, at Fifth Third, you can borrow up to $500 if you’ve had a checking account at the bank for at least six months. A fee of 10 percent is the cost of obtaining the loan, which is automatically paid off when you deposit your next paycheck in the account via direct deposit.

Even though the annual percentage rate is still a stiff 120 percent in the case of Fifth Third, it is far less than the costs associated with other providers of payday loans.

A couple of things to consider when taking account using a payday loan service ever, no matter if it’s from a much lower cost program or not, is what is leading you to need the payday loan in the first place.

As the needs can change from person to person, we won’t get into that, but each individual needs to know why they must pay such a high interest rate to get their hard-earned money cashed.

If you can’t change the reasons over the short term, you could start to gradually build up a savings fund so you can cheaply access your money at times like this without the added expenses.

Another option is to use the lowest interest credit card you have (assuming you have one), as even that will be cheaper than a payday loan at the lowest cost provider.

The point isn’t to feel guilty on why you need the payday loan, especially if it’s the only option available for you, but while you’re using them and looking for the best deal, it would be wise to build up your savings so you never have to do it again.

Even if you can only put a little away each check, you are working toward a solution to a problem that will remain long term if you don’t get rid of interest rates hitting you at even the lowest levels of 120 percent or more.

If you’re an existing credit card member of Bank of America, you can still get a $75 bonus for signing up for a Free MyAccess Checking account through March 31, 2010.

There is a minimum initial deposit of $125 to gain access to the free account and get the $75 bonus.

Even though there is that minimum requirement, there is no minimum balance required to be maintained, although you do have to keep the account opened for at least 90 days to receive the bonus offered.

There is also no  monthly maintenance fee associated with the offer or the requirement of a direct deposit.

Other benefits include: 

• Manage your accounts easily with free Online Banking service with free Bill Pay

• Access to Customer Service 24/7 online or by phone

• Free Bank of America Visa Check Card with Total Security Protection Package

• No Bank of America charge for using non-Bank of America ATMs located in the U.S.

If you’re looking for a checking account that bears interest, this won’t be the one for you, as it’s not an interest earning checking account.
 
Remember that you must be an existing Bank of America credit card customer to take advantage of this offer, and is only applicable to the new MyAccess Checking accounts. If you have another checking account with the company but don’t have a credit card, you don’t qualify for this particular offer.

If you have savings but are keeping them in a regular account rather than an ISA, you may be missing out on a lot of benefits and in turn giving more of your money to the taxman than necessary.

You can put up to £3,600 tax free into your ISA each year running from April to April. This limit was increased to £5,100 in October 2009 for anybody who is over fifty years old and will soon be made the same for everybody in April 2010.

You are able to switch your ISA around as long as your account’s rules allow transfers- not all of them do.

Cash ISA rates change frequently and the chances are that the great deal you found a few years ago is no longer one of the best deals anymore.

Just like ordinary savings accounts, there are different types of cash ISAs available- easy access, fixed rate and regular savings- meaning there is bound to be one that is suitable for your needs.

The security of our banks was once never questioned but then the credit crunch and recession hit. The question every saver is guaranteed to want to get an answer to is, ‘is my money safe?” The answer is quite easy, as long as your money is in a UK regulated bank or building society it is protected under the Financial Services Compensation Scheme (FCOS). The first £50,000 per person is guaranteed under this agreement.

Only in exceptional circumstances, i.e. you have done very well in your saving will your ISA balance exceed 50,000 pounds, so its unlikely to be a problem.
For people with very large amounts of savings (for example a house sale) this could lead to lots of accounts, even if you’ve too much to stick to the £50,000 limit for each account.

For more advice on Cash ISA accounts visit moneysupermarket.com where we compare providers so you don’t have to.

Possibly one of the least products we shop around for is insurance in general. Many people think in their minds that one insurance policy from one company which covers the same thing will also cost the same. You are completely wrong if that’s what you think, and you cans save hundreds, and in some cases a thousand dollars or more on insurance when taking into account all the policies you have.

I remember when I took over FHA loan for a nice home years ago, that I didn’t check much into the insurance side of it, as I was very happy with the overall price, which was included in the monthly payment.

After several years I got the mortgage payment book in the mail for that particular year, and I was shocked as the price had gone up almost a hundred dollars a month.

Assuming it was on the mortgage side and simply an error, I called up the bank and found out it wasn’t the mortgage that had changed or an error, but the insurance company I inherited when I took over the FHA loan, which at the time I didn’t bother comparison shopping for insurance.

Anyway, I called around at that time as I wasn’t going to be hit with an added thousand dollars a year for the payment because of insurance.

So I had some people come out and check out the house and land, and I was surprised to find out not only was the insurance far less than the current offer for the same coverage, but also was less than the coverage I had been getting for several years before. Nice!.

In the end I ended up paying less than I had several years before the new policy had attempted to be put in place.

Bottom line, check every insurance policy you have and call around to find the lowest price you can get. Just be sure you’re comparing apples with apples and are talking about the same coverage, or find out if you’re over-insured, which many times can happen.

Another tip to consider is in relationship to deductables. Now I’ve always been one to take as high as a deductible I can. Now I can do this for my home and car because I know my lifestyle. I don’t live the type of lifestyle that is risky and prone to damaging my property or automobile. So while anything can happen, I’ve never had a problem with the higher deductible, and have saved a lot of money for taking it.

Once you do that over a couple of years, you can even save from the what you would have had to pay and have the deductible set aside just in case an unforeseen or unpreventable accident happens or storm comes that can do a lot of damage to your home.

Adding a few little and relatively inexpensive items to your home can also lower your deductible, such as improved home security measures and fire alarms, etc. These additions can take over 5 percent off your insurance cost and once in place can be used year after year without added expense.

And if you move, don’t assume your current insurance carrier or carriers will be the low price leaders in a new state. I’ve personally moved a number of time, and almost without exception the prices of the policies from companies in one state are less competitive in the new state I move to, and so I shop around again using the same methods mentioned above.

The bottom line is you can save a lot of money by the few simple steps mentioned above on insurance.

Again, the key and trick is to have the discipline and will to take that extra money and put it away for your future.

Many people will say the rich are different than the ordinary person, and they would be right, but not in the way you would think.

For the purpose of this article, I’m defining rich in terms of those that have a net worth of about $1 million.

Most of the time when people say the rich are different than the ordinary person, what they’re really doing is thinking in terms of the super rich - the multi-millionaires and above.

But for the ordinary professional who builds their wealth over time to reach a net worth of over $1 million, they are different than us by their strong discipline in financial matters, and practice things just a little differently than the rest of the population, which results in the building up of their wealth.

There are several aspects to what is the discipline among the wealthy which helps them reach their goals, but all of them are products of one thing: they spend just a few more minutes a day going over their finances.

You may not believe it’s as simple as that, but it is. Studies have shown that the average millionaire doesn’t live as differently from the rest of us as you may think, rather their financial discipline is simply a little higher than ours.

But when you add that discipline up over a period of years, it surpasses the average net worth of people not that different from them, who refused to defer their gratifications and ended up living from paycheck to paycheck, even when they make more money than the others.

With that in mind, here are several of the things that emerge from spending a little more time each day taking care of finances. Oh, and when I say several minutes, I’m literally talking maybe an extra 15 minutes a day to check things over and confirm what’s going on. That’s it!

Never buy in season

One of the major practical steps wealthy people take is they never buy products in season. When you buy in season you will not only never get a discount, but you’re usually going to pay more for the item than you normally would otherwise.

So if they want a fan for example, they go looking around near the end of summer when prices are knocked down significantly, and many times I’ve seen those prices cut 40 percent or more from the summer months.

The same with winter clothes or related items. The time to buy is right near the end of spring when people are thinking of gardening and fun in the sun. Again, prices are way low at that time.

Point is, they literally save hundreds, and probably thousands of dollars a year by buying out of season.

Never pay retail price

A similar but different area is the wealthy won’t pay retail price for anything. This is slightly different because there’s always deals to be had, and not all of them are relegated to out of season items.

No matter what though, only in certain circumstances will the rich pay retail.

Know which items to pay for quality for

While the wealthy definitely watch what they spend on, the other trait is they know when they should pay for quality, and one of those areas, interestingly, is shoes.

They want a good pair of shoes and are willing to pay top dollar for them. This is obvious for the comfort reasons, and when the soles of the shoes wear out, they will go to a cobbler to get them re-soled in order to keep the comfort (yes there still are cobblers out there and they cater to this clientele).

Know where all the money goes
 
As part of their spending a little extra time a day on their finances, the wealthy go through what they spend in order to get an ongoing grip on what their spending habits are.

They know it’s easy to get out of control quickly, and spending that little extra time going over receipts keeps them in check. We should do the same.

Frugality

We always hear the word frugality and think of living on washed and dried paper plates or recycled goods we would have no desire to use over again. But with the wealthy frugality is target so they get the best bang for their dollar, and they not only save money, but invest that saved money over a period of years and so generate their $1 million or more net worth.

What most people think of the wealthy are those that live extravagantly, but what they have is the trappings of wealth, and are one step away from poverty, bankruptcy or foreclosure.

In the end, you really don’t know who the wealthy are as I’m talking about them, as they won’t show it in the way some people like to; those you are deep in debt to live the lifestyle they’re showing off. Many of the not-so-wealthy of course do the same.

The bottom line is if we follow in the footsteps of these good financial examples, we can build up a similar net worth over our lives and have all that we would ever need, and in most cases – want.

If you have fairly predictable expenses for day-care or medical needs, there’s a tool you can use called medical and dependent-care flexible spending accounts (FSAs) which offer opportunities at minimum, hundreds of dollars in savings a year.

What’s especially great about these is they’re tax free while you are able to save $250 for each $1,000 you spend on care. that’s not all the benefits of its though. You can also save on your Social Security taxes because you don’t have to pay that when putting away this money either.

Are there any tricks or unintended consequences here which could hurt you financially? None at all, but you do need to manage it responsibly to protect yourself.

While that sounds scary what I just said, in reality all it means is you need to put money into the FSA somewhat conservatively because when the end of the year comes you don’t get back what’s left because of the benefits you get.

This should never be a problem with daycare, and for other medical expenses, you should be able to manage that fairly well from past expenditures on a yearly basis or if there are certain medical needs you have that have fixed costs.

The point is you shouldn’t try to game the system here, because if you put too much in it’s gone. Use it responsibly and you’ll save hundreds of dollars a year, and possibly from a thousand to two thousand, depending on what you pay out.

Why this is so great is you will have to pay these expenses anyway, so it just makes sense to pay for them through an FSA so you can take advantage of this great plan.

Eventually you’ll get a reimbursement check for your taxes. The key is to put it away for savings, which is the reason you use an FSA in the first place.

As always, don’t be tempted to take your windfalls and go spend them as soon as you get the check in hand.

If you want to occasionally reward yourself that’s a real must, just do it on a limited basis and occasionally. Keep the long term strategy in mind and know that if you commit to your savings plan and are responsible with it, there will come the time when you can buy almost anything you want for cash and never feel the weight of debt or spending what you really don’t have to spend.

An FSA is one great tool you can use to reach those savings goals.