Many people are struggling with debt and are worried about being able to pay for higher education.  Being able to go to a university and earn a degree is becoming an important part of today’s job market and a higher education will be even more important for obtaining a job when younger generations enter the job market.  A college education is the first step to have all the tools that are needed to succeed in this job market.  Being able to save for higher education can go a long way towards giving yourself or your child an advantage in life.

Saving Methods

There are a number of different ways that can be used for saving for a university education.  One of the most popular ways to save is to put money into a 529 College Savings Plan.  Once enrollment has been assured, the money that has been placed into the savings plan can be used to pay for tuition to the university.  The rules of the 529 College Savings Plan dictate how the money may be used and any limitations are disclosed before investment in the plan begins.

Another saving option is interest bearing savings accounts.  These accounts are popular because the money saved earns interest, increasing the amount in the account that can be used for higher education.  Many of these savings accounts have a low rate of return because of the level of risk associated with savings accounts, but the money saved in these accounts can be accessed at any time and can be used to pay for whatever it is needed for, including food, books, or dormitory furnishings. 

People without a lot of disposable income can still save for higher education.  Placing $25 per month into a savings account can help with a head start on their future that will be greatly appreciated.  When it is time to apply, applying for scholarships may pay for a portion of the tuition costs and the student may be able to supplement the funds by working part-time. Having savings in reserve will ensure that the student has enough financial backing to pay for their education until they receive their degree.

This is a guest post by Car Finance 247 who are based in the UK and specialise in helping people with bad credit.

Most people have at least one credit card and use the credit card to charge purchases on a regular basis.  Companies that issue credit cards invent ways to entice people to use their credit cards more often because it gives the company more chances to obtain more funds by charging increased interest rates and fees.  There are many ways for a person to reduce the amount paid to the credit card company in fees.

Companies that issue credit cards offer different rewards for making purchases at places where lower dollar amounts are common.  This entices individuals to use their credit card more often, creating higher balances subject to fees and interest payments.  By offering rewards for increased use, the credit card company increases the amount made off of these individuals in fees and paying less out in rewards than most realize.  It is smarter to use the credit card infrequently and pay cash for small purchases to decrease the balance of their credit card.

Companies that issue credit cards give each account a grace period for paying off new purchases before charging a financing fee to the account.  This time period lasts between 20 and 30 days and if the balance of the credit card is paid off within this time period, no financing fee for the purchases is charged.  Paying off the balance of the account each month will help you avoid paying extra financing fees to the credit card company.

Making a payment on the credit card late can result in numerous fees and charges.  The first fee will be a delinquent payment fee, which can range between $20 and $39 for each occurrence, often charged within a few hours of the payment late.  If the late payment fee pushes the account over the credit limit, the company can charge an over-limit fee, which could add another $39 fee to the account.

In addition, many companies that issue credit cards use a missed payment to increase the interest rate for the credit card to the highest allowable limit.  To avoid these issues, make the payment for the credit card when the bill is received to ensure that the payment will be received on time.  Paying your bill online will post the payment to the account by the next business day if you are running out of time to mail the payment.  When the transaction is complete, a confirmation will be issued saying that the transaction has been processed and showing the date that the payment will post to the account.

Using your credit card in another country can be the best traveling decision you can make, but only if you do your homework first. There are some crucial steps you should take before trusting the future of your once-in-a-lifetime vacation to a small plastic card. Without proper preparation, you might become stuck in an uncomfortable financial situation at best, and stranded with no options at worst. Before you start your traveling adventure, here are 5 ways to use your credit card in another country for the best results:

-  Research before you go to determine the best card accepted by the major vendors of your trip. It does you no good to choose a card no provider in the country accepts. Compare credit cards to get the most from your activity – do they provide insurance, do they offer credit card rewards such as air miles or fuel cashbacks, low interest rates?

-  Check the card issuer agreement – you know, that long and closely printed booklet you get with your card? Look for “currency exchange” or “foreign currency transactions” to see how much it will cost you to use your card out of country. Typically, there’s a 2% fee from the card issuer and a 1% fee from Visa, MasterCard, American Express etc. Still, it is usually cheaper than exchanging cash or buying traveler’s cheques, and a credit card provides a better local currency exchange.

-  Take other forms of payment because there will be places and vendor that do not accept plastic. Once you’re on your vacation or business trip, that’s not the time you want to learn you can’t buy lunch or make a purchase unless you have an alternative to a credit card.

-  Make a budget for what you want to spend and save all of your receipts. Keep track of what you’re buying and how much it is costing you so you can compare the receipts to the credit card statement when you arrive home. There could be errors or even out-and-out fraud, so be alert.

- Inform your credit card company of your plans to travel out of the country so they are aware and don’t stop any charges to your card as suspicious. By the same token, inform them of your return to your own country so they know anything that happens after this time is questionable. If you keep the lines of communication open between you and your credit card company there’s very little risk of a major problem occurring.

There are a lot of details when it comes to traveling out of the country, but one of the primary concerns should be the financial situation and how you’re going to handle expenses on the way. A travel credit card in this case is not only convenient, it can be the best way to make the trip as smooth and problem-free as possible.

Recent research by online price comparison site Moneysupermarket.com, showed that one in five homeowners was considering taking out a loan to finance DIY and home improvements.

This raises an interesting question about the value of home improvements versus the cost of financing these projects and whether the ultimate return is worth the investment.

Certainly most homeowners will have a variety of reasons for deciding to indulge in some holiday DIY projects. Many people enjoy it for the fun and satisfaction of being ‘hands-on’, others find it to be a more cost-effective way to improve their home than getting in tradespeople to do the job.

Some like to make small seasonal changes to their homes to keep up with trends and fashions – for example those who regularly re-decorate, put up fresh paint and wallpaper, change colour schemes and window dressings and refresh furniture and accessories on a regular basis.

Others are looking forward to the longer term implications of improving their home. For example, by installing underfloor heating, building an extension or updating a bathroom. These projects can add to the value of a home.

For small projects, financing should ideally be done via savings and careful budgeting. Borrowing money to finance trends is like clothes or hobby shopping on a credit card – not the best way of managing your personal finances

If however, your aim is to add value to your home through carefully chosen, high value projects, then research. There are resources in print and online to advise on the average cost of a large home job and the amount it may add to your home.

Get the opinion of a realtor or building expert. It may be that the outlay and time involved doesn’t actually justify the end sales price. On the other hand, your research may reveal that there’s value in carrying out the project.

If so, take out loans with care. Avoid spending on expensive credit cards and bypass your bank as the first port of call. The cheapest loans will often be found by passing high street banks and brokers and heading directly online.

Use a price comparison site to find the best deals for you. Aim to repay back the loan as quickly as possible when inputting in your criteria, as this will lower the cost of finance overall and avoid the debt becoming a burden.

Ideally save a chunk of money to put towards your project in advance. A careful budget will usually reveal where cuts can be made. Factor in takeouts, ‘mystery’ direct debits, cups of coffee and other treats and you could be surprised at what’s left!

Find a reputable lender, look for an account with the best interest rate and the fewest charges. Do your sums and don’t be swayed by advertising or promotional ‘incentives’.

Be sure that you can repay your loan and consider whether you need repayment insurance if you’re put out of work in the meantime or lose your income.

Be warned that loan protection insurance can be high if offered through the loan provider. It may be worth seeking unemployment and accident/sickness insurance to protect your income and repayments to another provider, to guard against the worst happening.

Essentially, think carefully and fully when considering taking out a loan to finance home improvements. Do the maths, do your research and aim to repay back any borrowing as quickly as you can, or the debt may last longer than your new bathroom.

Saving is a very important part of financial stability, yet many people neglect to focus on saving and some have no savings in reserve at all.  People have many excuses for not saving, including that they do not make enough money or that they are planning to start a savings account when they are more financially secure, but the truth is that these excuses are leaving these individuals vulnerable to financial devastation in the event that the unexpected happens.  Saving money for the future may seem like an impossible task, but once you get started you will see that it can be easier than you ever imagined.

An important part of saving is having a budget.  A budget provides you with a plan for spending that allows you to have some money left over at the end of the month after all of your necessities have been paid for.  This is necessary to know where your money is going each month and how much you can afford to put into savings on a regular basis.  Many people that follow a budget list the amount that they agree to put into savings each month as an expense on their budget and remove the money from available spending funds as soon as it is received.

Experts recommend saving at least 10% of your earnings in a savings account for future needs.  Although this may seem like a large amount, it really is not and after a few months of removing the amount from your available funds as soon as you are paid and you will not even miss the small amount that is helping your savings accumulate.  If you are finding it difficult to save 10% because your monthly expenses eat up most of your paycheck, you need to sit down and identify some areas where spending can be cut before you find yourself deeply in debt.

There are many different ways that you can cut spending to increase savings.  Some people choose to take their lunch to work each day instead of purchasing a high priced prepared meal.  Others choose to eliminate unnecessary cable and cell phone packages to reduce spending.  Finding creative ways to reduce your spending to a level that will allow you to save at least 10% of your income in a savings account will go a long way towards securing your financial future.

Some employers make it easy for you to save money quickly by allowing employees to deposit their paychecks into multiple accounts using direct deposit.  The amount diverted into each account can be set as a particular amount, such as $50 per check, or as a percentage of the total amount.  Using this method to place 10% of your paycheck into a savings account automatically dramatically reduces the risk that the funds will be spent on other items instead of being saved.  Saving is easier than it seems when you focus on your financial goals and make an effort to follow your budget.

Saving enough to be able to handle the unexpected expenses that occur in life can be very difficult for many people.  They may not make a lot of money and believe that they cannot save a significant amount or they may be dipping into the funds of their savings account to pay for other expenses.  Saving money can be accomplished by anyone at any income level, as long as they are dedicated to creating a saving system and following it until their financial goals have been reached.

Reduce Unnecessary Expenses

Most people have things that they spend money for on a regular basis that they could eliminate from their budget and never miss.  Instead of purchasing lunch at a casual restaurant or fast food kiosk each workday, try taking your lunch with you and pocketing the $6 or more spent each day.  At the end of the year, you will have saved over $1,200 simply by changing your eating habits and taking your lunch with you to work.

Inexpensive Entertainment Options

Cable television is one of the biggest household expenses and many people do not watch enough to justify all of the channels purchased.  Movies and DVD box sets of television shows can be purchased fairly inexpensively at a number of stores that specialize in reselling used media items.  If you are only watching a few hours of television each day, consider eliminating expensive cable and investing in a DVD collection of shows and movies you enjoy.

Conserve Energy

Energy bills can take a large bite out of available finances.  By using some simple energy saving methods, such as replacing old weather stripping, turning down the thermostat a, or turning off the lights when you leave the room, you could be saving hundreds of dollars on your energy bills every year.  The price of gasoline has skyrocketed in recent years but by carefully planning your day, you may be able to reduce the amount of miles that you drive and the amount of gasoline consumed.  Plan errands for the drive home from work so that you are not making a separate trip to save gasoline.

Buy Store Brands And Generics

Many people purchase brand name items, not because they are better, but because that is what they have been programmed by commercials to do.  Many store brands and generic items are just as good as the name brand items, but cost a lot less because you are not paying for the name and the advertising associated with the product.  The price of these off brand items is typically 30% less than those of comparable name brand items, which is a lot to pay for brightly colored packaging and flashy commercials.

One of the problems facing the nation today is the amount of debt accumulated over the last decade.  Many people have wasted a great deal of money on things that do not retain value, such as the latest electronics, expensive or fad fashions, and luxury vacations.  Some believed that spending the equity in their home was a good idea while others believed charging things to their credit cards was the answer, forgetting that all of the purchases would have to be paid off eventually.  Now, credit lines are being reduced and home equity loans are difficult to obtain, leading to difficulty maintaining current lifestyles.

Avoiding the tricks that result in wasted money will allow you to save quite a bit of your income each month for paying off credit card balances or paying for living expenses.  It is easy to identify them once you have been alerted and you will be able to see these tricks used in various ways depending on the situation.  Many retailers use a wide array of different tricks to get you to purchase more than you intend and other businesses have their ways of getting you to spend more money with their company as well.

Don’t Pay Extra For Convenience

One unnecessary thing that many people pay for is the convenience of having items just a little bit faster or easier that it would be under regular circumstances.  A perfect example is paying ATM fees for withdrawals because you went to another bank’s ATM.  There are enough bank branches for most major banks that if they planned their purchases ahead of time, then they would never have to use the ATM of another branch resulting in fees paid to both banks.

Eliminate Unnecessary Expenses

Many people have unnecessary expenses that they pay for every day that does not register as wasted money because the purchase amount is so small.  What they fail to realize is that small purchases can add up to a lot of wasted money.  For example, a person that purchases coffee at the neighborhood coffee shop for $2.50 each day could save themselves $625 per year by brewing their own coffee at home and bringing it with them to work in a reusable travel mug.  Bringing lunch to work each day instead of purchasing lunch at a fast food place or casual restaurant could save more than $1,200 over the course of a year.

Only Purchase What You Intended

Retail stores are experts when it comes to convincing people to purchase more than they really needed or came in to get.  In order to help you resist the temptation, you should make a shopping list of the items to purchase prior to going into the store and follow the list while shopping.  By only purchasing what is on the list, you will save money and avoiding impulse purchases that tend to accumulate in the home.

It is baffling that many people spend more time researching their car purchases than they do researching their mortgage purchase.  A study conducted by Harris Interactive and Zillow showed that individuals average around five hours for researching mortgage loans but average 10 hours for researching available car loans.  This lack of preparation can end up costing homeowners thousands of dollars over their life of their mortgage loan.  To avoid falling into this situation, here are a few tips that can help save you money during and after the mortgage shopping process.

Assess Your Financial Situation

Before you begin shopping for a mortgage loan, you should take a long, hard look at your financial situation to determine what you can afford.  Examining your finances should include obtaining your credit score from the three major credit reporting bureaus, reviewing your income and earning potential, and evaluating the amount of debt already carried.  As a general rule, the amount of your mortgage payment, including taxes and insurance, should be less than 30% of your average monthly income after taxes.

Review Mortgage Loan Variations

When choosing a mortgage loan, most people choose one of the two main types of mortgage loan – fixed rate or adjustable rate.  Fixed rate mortgages carry the same interest rate for the entire life of the loan, ensuring that the payment amount remains constant until the home is paid off, refinanced, or sold.  Adjustable rate mortgages have interest rates that fluctuate according to the terms of the mortgage agreement, which means that interest only mortgage payments can increase or decrease when the interest rate adjusts.  Reviewing the pros and cons of both types of mortgage loans can help you make an informed decision about which type of mortgage loan is best for your needs and your financial situation.

Get Multiple Mortgage Quotes Within 30 Days

Many borrowers only obtain quotes from a few mortgage lenders during the mortgage shopping process because they believe that having multiple lenders checking their credit will cause their credit score to decrease.  Due to rules put into place by the federal governments, borrowers now have a 30-day window in which multiple checks of their credit will not affect their credit score.  This means that you can get as many quotes as you want within that 30-day window and you will not be penalized for it.

If you’re looking for interest only mortgage advice, visit The Mortgage Broker.

When it comes to saving for retirement, excuses and reasons to put off saving abound.  Maybe we believe that there are more important things to spend our money on or that retirement is so far away that we have plenty of time before we must begin.  Although these justifications may seem reasonable at the time, they can do great damage to your financial future if they prevent you from saving adequately for your retirement years.

Here are the most common reasons for not saving for retirement and how to overcome them.

I Don’t Earn Enough Money!

If you do not earn a big salary, it can be difficult to save for retirement because there are many immediate demands on your income.  Although you may be living paycheck to paycheck, saving even small amounts can significantly improve your financial outlook for your retirement years.  If you can save $20 per month, at the end of the year you will have saved $240 with little change in your quality of life.  As you grow accustomed to putting a small amount into savings each month, gradually increase the amount saved by allocating half the amount of received pay raises or bonuses into the retirement account.

I Need To Save For College First!

Many parents put off saving for their retirement so that they can save for their children’s college education first.  Experts warn against neglecting your retirement savings to fund a college savings plan because there are more opportunities to borrow or gain money for college than there are opportunities to obtain extra money for retirement.  Parents can always help their children pay off a student loan and should focus on ensuring that their retirement years will be secure so they will not be a financial burden on their children later in life.

I Have Plenty Of Time For Saving!

Focusing on a financial goal that is decades away can be very difficult with so many immediate expenses facing us everyday.  Saving for retirement now will reduce the amount of disposable income you have for other purchases, but beginning early means that you can save a lower amount of money over a longer period of time to reach the same savings goal.  An individual in their mid-20’s that saves $2,500 per year in a retirement account earning an average of 7% interest can have nearly $518,000 saved by age 65.  An individual beginning to save at age 40 would have to place nearly $7,900 per year into the account to reach the same goal.

Many people have protested the practices of credit card companies that cost consumers hundreds of dollars more than they believe is fair.  The displeasure of the public has become so loud about these practices that Congress created the Credit Cardholder’s Bill Of Rights to reduce or eliminate practices that could be considered predatory.  There are many things that you can do on your own to save money on your credit cards and implement these measures has the potential to save you hundreds in credit card fees every year.

Pay Bills As They Arrive

To avoid considerable fees to your credit card account, it is better to make payments as soon as you have received the bill.  This ensures that your payment will not be received late.  Late payments give credit card companies plentiful opportunities to charge you more money, including skyrocketing the interest rate for the card to the highest allowable limit that is often close to 30%, late payment charges that could be as high as $39 per occurrence, and over-limit fees, which could add another $39 charge to the balance of the account.  A single missed or late payment could cost the person $80 or more in fees and interest rate hikes.

Keep Usage Minimal

Although the temptation to place purchases on your credit card can be very high, going this route will cost the person a large amount of money.  In addition to the interest charges and finance charges, there is a good chance that the person will spend more than they can afford to repay, will go over their credit limit triggering additional charges, or will carry a balance on the card which allows the company to charge high fees for using the credit card.  The best way to use a credit card is to use the credit card for emergency purchases only and to pay cash for everything else.

Pay Off Your Balance Monthly

One of the easiest ways to save money on your credit cards is to never charge more to then than you can pay off each month.  Carrying a balance on the credit card will result in finance charges and interest fees that can add a significant amount to the amount that will need to be paid off.  These charges cannot be levied before a certain period of time has passed, so paying off the credit card in full before these charges are levied results in an interest free loan for the month.