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How To Pump Up Your Finances

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By “pump up,” I mean to do something that improves your financial situation in any way. Reduce expenses, start a rainy day fund, invest for the future, etc.

With that said, let’s take a look at some simple strategies to pump up your finances.

Cut the fat

I’d start by creating a budget. Look at the past three months of income and expenses. Total the expenses, total your income and compare the two. This will give you a clear picture of how much you are spending versus how much you make.

After that, you can go back with a magnifying glass and see exactly where your money is going, and stop spending money where it is necessary, or at least reduce it.

You can also reduce the fees you pay to invest. Mutual funds and ETFs are the most popular vehicles used today, but they come with a cost. It’s listed as an expense ratio. That ratio should be as low as possible. Ideally, it’ll be under .20%.

A quick tip to cut your expenses – get rid of cable/dish. There are too many services available now. You don’t need to spend $100+ on TV anymore.

Increase savings rate

Hopefully, you are saving something. If you are having trouble setting money aside because of limited resources, give this article a read for some help.

You should be saving in at least two places. An emergency fund and a retirement plan.

  • Emergency fund – Say you are contributing $20 per month. This is a good place to start, but you’re going to want to save more so you have enough in case your car breaks down or you lose your job. After three months of saving $20/month. Increase that amount by $5. After another three months, at which point you’ll have gotten used to not having that extra $5, increase it again. Rinse and repeat.
  • Retirement plan – If you have a retirement plan with your employer and they match, you’ll want to contribute at least enough to get that match. That’s your starting point. Then you’ll follow the same steps as the emergency fund. After a few months, increase the contribution percentage. If you don’t have a plan with your employer, set up an IRA, start contributing what’s comfortable for you, and follow those same steps.

I mentioned you should have AT LEAST these two accounts. Personally, I have several savings accounts. They are set up for different reasons. I have one for holiday spending, one for car repairs, and one for travel expenses. Giving your money a “job” makes it more likely that you’ll use that money for that “job.”

Switch to an online bank

Most online banks have higher interest rates on savings accounts. They also, typically, have lower rates on loans (based on credit score).

If you are saving money for a rainy day and putting it with a brick and mortar bank, you’re most likely earning next to nothing. Better to put that money in an account where you’ll earn a little interest.

Refinance high-interest rate loans

I’m going to dedicate this section to credit cards because that’s what most people think of when they hear high-interest rates.

There are three strategies you can use.

  1. Balance transfer – Many credit card companies offer a 0% APR on balance transfers for a certain period of time. Some have terms for 21 months. The interest rate will jump after the 21st month, though, so make sure your balance is paid off before then.
  2. Personal loan – If you have credit card debt and don’t, or can’t, utilize a 0% balance transfer, then a personal loan is your next option. You get a loan for the total amount of outstanding credit card debt. Then the institution will send a payment to each credit card company and pay off your credit card debt. You’ll be left with one payment. Be advised, credit matters here (also for balance transfers) so if the interest rate on the personal loan is higher than the average interest rate of your credit cards, don’t do it.
  3. The last option is to call the credit card company and ask for a lower rate. More often than not, if it’s available, they’ll give it to you. It won’t lower your payment a whole lot, but it’ll definitely help.

If you want to learn more about credit cards, click here.

Improve your credit

Your credit score makes a difference. It can impact what loans you qualify for, the interest rate, where you live, and where you work.

If you want to start making moves in your financial life, you need to improve your credit.

There are three really simple ways to do this.

  1. Pay more than the minimum on your outstanding debt and pay on time – on time payments is the #1 factor when calculating your score.
  2. Call your utility company and see if they report to the credit agency. It’ll count as another credit account (a factor) and it’ll influence your on-time payments.
  3. Open a secured credit card – You open this type of card with a deposit. The deposit will act as your credit limit. If you deposit $500, you’ll have a credit limit of $500. Make regular, small purchases and pay the entire balance right away. Credit agencies like to so activity and, as I’ve said, on-time payments.

If you want to learn more about improving your credit, click here.

Conclusion

If you want to improve your financial life, it’s actually pretty straight forward. Spend less than you make, save money for the future, pay down debt, and improve your credit. If you do these four things (obviously, easier said than done), goals that once seemed far fetched, can be within reach.

Please visit my website for our disclosures.

 

If reading this blog post makes you want to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

What Hurts Your Credit Score? 10 Things That Can Seriously Affect Your Rating

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When it comes to financial literacy, how confident are you?

If you’re like most of the country, you’re probably not as confident as you’d like to be. Two-thirds of the country isn’t even able to pass a basic financial literacy test.

As far as financial literacy goes, one of the issues Americans struggle with the most is their credit score. Most Americans have no idea what hurts your credit score or what they can do to raise it back up.

[Read more…]

A Few Tax Tips Suitable for Anyone

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Seeing as how next Monday is tax day, I thought it would be fitting to write about taxes. This article will have little to do with income taxes, however.

Instead, I’ll be focusing on the taxability of retirement accounts and brokerage accounts.

Qualified Accounts

A qualified account is pretty much anything that has a tax advantage. Tax advantage simply means that the investments inside the account grow tax-deferred – you aren’t taxed on the growth within the account, and/or the money can be withdrawn tax-free.

There are several different kinds of qualified accounts. Instead of listing them all, I’m going to list a few of the common ones and link to an article containing all the accounts and what they’re about.

  • 401k – The most common employer-sponsored retirement account. It’s not offered by all employers, but the money going into the account is pre-tax. Additionally, the money grows tax-deferred. However, when withdrawn, the money is taxable as income according to your tax bracket.
  • Traditional IRA – This is an individual retirement account. This type of account is contributed to using post-tax money, but most people are able to deduct the contribution on their taxes. However, there is a level of income when you no longer qualify for that deduction. The money is taxable when withdrawn as income.
  • Roth IRA – Also an individual retirement account, but with three key differences. One, the money that’s contributed is not tax-deductible. Two, the money is tax-free when withdrawn. Three, not everyone is eligible to open a Roth IRA once a certain level of income is reached.

Each of these plans has unique characteristics and rules. I encourage you to give this article a read to learn more about them. (Note: income eligibility for IRAs is listed in this article)

Non-qualified accounts

No bells or whistles. These accounts are designed to hold your cash, securities, and give you the ability to invest and trade.

Qualified accounts do the same thing, but have tax-advantages. Non-qualified accounts don’t.

There are usually two types of accounts: individual and joint. An individual account is for one person. A joint account is for two or more.

With a non-qualified account, there are two things you have to pay attention to.

  • Capital gains/losses – A capital gain is when you sell an investment for more than what you paid for it and a capital loss is the exact opposite. A capital gain comes in two variations. Short-term, which is when you held an investment for less than one year and is taxed at your income tax bracket. Long-term, when you held an investment for longer than one year and is taxed at a reduced tax rate.
  • Dividends/interest – These are paid by the company or fund and are taxed as income.

Tax return as savings

The last thing I wanted to talk about is your tax return and how you use it/view it. There are three types of returns. When you owe, when you break even, and when you get money back.

What I try to do, and what I generally recommend people do, is get as close to breaking even as you can. This just means you paid about the exact amount in taxes that you should have. No more, no less.

Here’s when I’m okay with people getting money back.

As a collective, we are horrible at saving money. The statistics show it. Now if you go through the year and pay more taxes than you need to and want to use that tax return as a makeshift savings account, then have at it.

My philosophy is if it helps you save money and it works for you, then do it. Some people need that type of set up.

Regular savings account don’t work for everyone because often, they are able to access the money whenever they want/need to. If you’re using your tax return as your savings vehicle, you don’t have that opportunity.

Conclusion

Love it or hate it, taxes are a part of life, and they won’t go away. There are certain strategies and certain accounts you can utilize to help make them more manageable/bearable.

If you’d like to learn more about anything discussed here and for my disclosures, visit my company’s website!

 

If reading this blog post makes you want to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

How to Make Long-Term Investing Decisions

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One of the most valuable attributes of successful investors is being able to stick to their guns and trust their analysis even when the market is tanking.

How do you invest for the long-term? Are there certain strategies and mindsets that can be used to your advantage?

We’ll explain that and more in the following article.

Know what you are willing to risk

Whether you are someone that allocates your assets between a select few mutual funds but are looking to use a small portion of your account to enhance your returns or an investor that owns a handful of stocks, you need to be wary of how much of your total portfolio is in one security/strategy.

With either scenario, the decision of how much of your portfolio you are willing to risk in an individual security is whatever you are comfortable with. Personally, if I were in your position, I wouldn’t use more than 5% in this type of situation.

Taxes matter

If you are investing in a qualified account (tax-advantaged account) taxes don’t really have any effect on whether you should buy or sell something, or what type of security you invest in.

You’re either taxed before you deposit the funds or you pay taxes when you withdraw, otherwise the account grows tax-deferred.

If you’re investing in a non-qualified account (standard brokerage/investment account) the taxes and what securities you invest in, matters.

For example, when you invest in a mutual fund, at the end of the year, that fund will pass capital gains to the investors. It’ll come in similar to a dividend, but a much bigger number (depending on the year). You have to pay taxes on that, just like you would a dividend.

Another example, if you invest in a security and sell it for more than you bought it, you have a capital gain. If you held the security for less than 1 year, it’s a short-term capital gain. If you held it for more than 1 year, it’s a long-term capital gain. A long-term capital gain is taxed at a lower rate than a short-term gain.

Asset allocation is important

Stocks/bonds/cash. They are the three most important asset classes in investing.

I’ve written about stocks and bonds before, but the cliff notes version is stocks are risky and can reward you with high returns. They get hit hard during bear markets.

Bonds are generally less risky so you usually get a lower return. However, they tend to hold up a little better during bear markets.

Depending on where you are in life and what you’re comfortable with determines how much (by percentage) you should have in each asset class.

Someone in their 20s should have almost all stocks and a little in bonds. Maybe 90/10 or 80/20. I’d only recommend cash if they were waiting for a significant pullback and wanted to put money to work at lower prices.

Conversely, someone in their 60s that has less time to make back what they lose, would be much more conservative. Their allocation could be 40/50/10 or somewhere around there.

Keep in mind these are general rules of thumb. The most important thing with any investment is your comfort level. If you are 25 and aren’t comfortable with hanging on to your stocks during a 40% decline, be more conservative.

Fees will eat your returns

There’s no denying that trading fees, advisor fees, and the various other types of fees will reduce your returns over the long-term.

On average, expense ratios on mutual funds are much higher than expense ratios on ETFs. Though I believe paying your advisor their fee (I don’t think it should be higher than 1%) is well worth the expense, not everyone needs an advisor.

If your financial situation is relatively simple, you’re comfortable and confident with how you handle things, and you don’t foresee making any significant changes, then it’s probably not worth it.

However, it might not be a terrible idea to see one every few years to have an objective set of eyes review everything.

What’s your exit strategy?

When you invest in a security, and this is more than just asset allocation, you need to have your exit already planned. Too often, people will invest in a stock, see it climb 10% higher and then fall back down. Instead of selling with a small gain or at cost, they’ll hang onto it in hopes it’ll climb back up, even if it keeps falling.

Our emotions and our behavior is our worst enemy in investing. Having a plan and a strategy in place before you even get started is a great way to help mitigate those things from getting in the way.

Regular contributions

If you have time to ride out down markets and are comfortable with the investments you chose/the asset allocation you picked, then hang onto what you have.

An added bonus is if you are regularly contributing and adding to those positions. In a down market, those securities you invested in will get cheaper. When you regularly invest at lower prices, you effectively lower your average purchase price.

Conclusion

Investing can be very difficult, but it doesn’t have to be. In my opinion, keeping your investment plan as simple as possible paired with a unique ability to keep your emotions out of the equation is a recipe for success.

For more information about investing and for my disclosures, visit www.crgfinancialservices.com.

 

If reading this blog post makes you want to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

10 Tips for Becoming a Better Financial Mentor or Advisor

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Telling people how to properly manage their finances seems like a relatively straightforward job on the surface, but once you start to get into the nuances and subtitles of topics like investment portfolio management, retirement savings, and tax deductions, things can start to get complicated. Being a great financial mentor isn’t just about being able to recall and share knowledge with your clients, it’s about putting yourself in their shoes to determine the best possible course of action. Perhaps more importantly, whether you’re able to retain existing clients will depend on how well you deliver your presentations and the efficacy of your recommendations. With that said, here are 10 tips you can use to become a better financial advisor or mentor:

1. Hone Your Presentation Skills with Coaching Training

The old saying, “it’s not what you say but how you say it,” is certainly true in financial advisory. The fact is, it often takes month or years for a piece of financial advice to be proven true or false. That means that in the short-term, the client’s perception of your advice is even more important than whether the advice is actually useful. Of course, that doesn’t mean you shouldn’t try to be as accurate and helpful as possible, but it’s important to remember that the way you present your advice is almost as important as the advice itself. Get training in coaching to learn how to pass your advice along successfully.

2. Be a Better Leader

As a financial advisor, you’re always playing a leadership role, whether you know it or not. The problem is, if you don’t think and act like a leader,it won’t come across in your advisory, and clients won’t be as confident in your advice. Projecting an assuring attitude will give the impression that you thoroughly know what you’re doing as opposed to someone who seems shaky or skeptical about the advice they’re giving. Even if you are not 100% certain that your suggestions will result in a financial gain, it’s imperative that you approach each session with the mindset of an infallible leader rather than a speculative companion.

3. Be Personable

Being a good leader is just one half of the battle because you also have to be personable enough to get clients to like you. It’s possible to be a great leader without having excellent 1-on-1 conversational skills. Learn to listen more and ask questions that stir up curiosity and brainstorming during your consultations. How well do you really know your clients? Being an advisor involves building long-lasting business relationships with people, so if you’re not prepared to be a likeable individual, this may not be the career path for you.

4. Specialize in a Specific Financial Niche

Everyone needs financial advice, so no niche is untouchable for a financial advisor. Some financial advisors focus on providing guidance to internet marketers, while others offer advisory to healthcare professionals and clinics. There’s really no limit to the kinds of business structures and investment strategies you can specialize in, so be creative and look for something that provides a decent level of opportunity with minimal competition. Playing the niche card works because many savvier clients don’t just want general advice, they want suggestions that are tailored to their company’s needs and goals.

5. Send Out Routine Follow Ups to Stay Visible

Financial advice is everywhere, and it seems like there are a million ways to find guidance. Staying visible and following up is the best way to break through that sea of competition and remain a factor for your clients and prospects. Use automated email sending apps and services to schedule your follow-up regimen weeks or months in advance. That way, your clients will be hearing from you on a regular basis, even when they’re not in need of mentorship or advice.

6. Be a Better Listener

You’re inevitably going to encounter a percentage of clients who will ramble on and on about their money problems. You may have the natural urge to interrupt with some sage advice, but the better course of action is to give the client time to let it all out and stop naturally. Knowing when to interject will help the flow of the conversation and the client won’t feel like they’re being cut off in the middle of a sentence or thought process. In a way, letting clients fully vent is part of being a great mentor or advisor because it gives you more questions and concerns to respond to when it’s your turn to start speaking.

7. Improve Communication

Whether you’re providing written advice via a digital content platform like an email newsletter or a regularly updated blog, or you’re doing in-person meetings to deliver your mentorship, you’ll need to have a way with words. Fortunately, if you enroll for the coaching training courses mentioned in the first tip on this list, you should learn quite a bit about being a better communicator. You may also want to take some courses on public speaking and business writing.

8. Let the Metrics Speak for You

Many of your clients will not take the time or effort to track their progress in a quantified manner. By taking the initiative to bring that value to the table, you’ll be proving your worth with undeniable stats and figures that speak for themselves. Use graphs and charts to back up your advisory and leverage it even more with analytical follow-ups to show that your advice has been generating positive results.

9. Be a Fact-Based Advisor

Anyone can speculate and give opinions all day, but not many advisors have the analysis and reporting skills to keep their guidance completely fact-based. While there’s always a margin for error, when you stand behind solid statistics and a proven track record of accuracy, you’re more likely to impress clients enough to keep them coming back. You should also use the term “fact-based advisory” in your pitches and presentations to remind clients that you always put results first.

10. Learn How to Reduce the Client’s Stress

Talking about finances can obviously be stressful, especially when you’re in the position of desperately needing guidance from an advisor or mentor. Study conversational stress reduction techniques to learn how to de-escalate your client’s emotional states during consultation. Remember that you’re providing a service that is essentially financial therapy, so clients should leave feeling relieved and less concerned than they were before. This is one of the more subtle parts of being an advisor or mentor, but it’s what separates the pros from the amateurs.

Giving Advice Shouldn’t Be Hard

When you’ve dedicated your career to learning how to become a better money manager, teaching others how to do the same shouldn’t feel like rocket science. Ultimately, your value as an advisor comes not just in the knowledge you bring but also your ability to help each client achieve their individual financial needs.

Many financial advisors will tell you that the hardest year of doing business will be your first because you’ll be getting used to dealing with clients and refining your abilities. Once you’ve established a solid foundational skill set and have a good 1-2 years of experience under your belt, you’ll find that financial advisory will feel like an easy and pleasant job.

6 Best Marketing Strategies To Help Increase Sales

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six best marketing strategies

Image source: Pixabay.com

A good online store will definitely want to improve their conversions and traffic. Before considering improving, it is important to put different strategies in place. There are various tactics needed to Increase sales. The problem lies in the best admissible one to choose.

Due to this constant issue, we have come together to select good marketing strategies as well as tools for e-commerce combined with profitable ideas on how to implement it. All are centred on getting the customers attention and encouraging them to make more purchases.

If possible make use of these ideas at least once every day and use it for weeks to come. When making use of these ideas, it is advised that you pick one that best suits you.

The first question to consider centres on the meaning of e-commerce marketing. This simply means making use of useful and promotional tactics to get more traffic. You should be able to convert the traffic you get into leads.

Here are some tips to help you increase your online sales:

Use Instagram Efficiently

use instagram efficiently

Image source: Pixabay.com

On a grander scale, Instagram has more than 500 million users. Most of these users are active on the platform. Presently, it is regarded as one of the most visited social network applications in the world. It helps connect users, brands, and influencers. Taking good photos and dropping hashtags is the best way to develop your product through this social media platform. Most of the times if you are to gain the attention of your target audience, you may have to organize contests and competitions.

Minimize Abandoned Cart

The basic truth surrounds the fact that when you have a lower cart you will be at a financial loss. Visitors that surf a site, will add some purchase to it but what happens when they abandon their cart? It is nice to always have an email recovery campaign as it will help you retain your visitors. By creating this email, you can remind your visitors why they selected a particular product in the cart.

Start-up a Facebook store

This is another viable platform for e-commerce marketing and social media. It is advisable to start making sales from your Facebook store. Just so you know, your Facebook store can be joined with your Shopify store so as to avoid having to keep an inventory.

Increase your Email campaign

Getting enough email address is not enough, It is important to share and receive images through your Email. This will ensure that your channel is effective. There are a number of things your customers can enjoy from an email reminder when they make purchases on your online store. They include but are definitely not limited to these;

  • Send out a welcome email after your client has made a purchase.
  • Give out promo codes and gifts.
  • Send newsletters to show subscribers of a new product as well as company news.
  • Appreciate your best customers by sending them good notes and thanking them for their patronage.

Forward wish list e-mails as reminders

This is another type of email which is important to add to your marketing ideas. It can help you remind customers of products on their cart and also encourage them to add more products or items to their cart.

Customers should get what they want with ease

Image source: Pixabay.com
A poorly designed store will definitely not attract new customers. It may even chase your current customers. The question now would be; what makes a online store poorly designed?

First, they will be less trustworthy and at the same being difficult to navigate and also having difficult fonts.

To enable you to improve your sales, you have to find out how to sell on etsy with Printify.
You shouldn’t be surprised as their customer reviews are overwhelmingly positive.

This is just a few tactics that should be applied when planning on generating good online sales and traffic. Profitindustry.com shows you some of the best ecommerce platforms for a large catalog. Various online platforms have techniques which they use to Increase sales but yours can be different.

How Far Can You Trust Online Reviews?

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Before making a purchase, you probably check online to see what other people have to say about the product or service. These reviews – often with a 5-star rating system – have an enormous effect on people’s purchasing decisions.

The UK CMA (Competition & Markets Authority) estimate that over £20 billion of sales are a direct result of positive reviews. In separate research in 2016 they also found that a 1/3 of consumers were disappointed by something they’d bought online having trusted the excellent reviews they’d read beforehand. None of us can afford to waste our hard-earned cash in this way. If you do face problems funding purchases, Online Credit USA is a reputable forum to apply for payday loans online.

Reviews are important money earners for businesses, but how can you tell if a review is genuine or a fake? There are some signs that should make you wary of reviewers’ comments.

Style of English

Realising the money to be made from online reviews, some companies hire writing mills (often located in the Indian sub-continent) to churn out online reviews. Although they might pride themselves on the high standard of their English, you can sometimes spot a fake review because the English just doesn’t sound natural. Also, there might be inappropriate use of capitals and/or punctuation marks especially overuse of exclamation marks to transmit a feeling of enthusiasm.

Content

When reading online reviews, consider what information you’ve actually been given about the product or service. Gross generalizations such as ‘Best ever!’ and ‘It changed my life!’ don’t really add anything to your understanding of the product and should be ignored.

On the other hand, lots of technical jargon might be the sign of a professional writer’s research. Similarly, if someone mentions the name of the product in full, it’s often the tell-tale sign of a pro. This would only be written as SEO content and is aimed at a search engine rather than other consumers.

Trust 3-/4-Star Ratings

Are you always 100% happy about your purchases? Often fake reviews cluster at the 2 extremes – enthusiastic 5-star ratings to boost sales or 1-star reviews to trash their rivals’ products. Ignore these reviews unless you feel they make a valid point and concentrate on the ratings in the middle. These are much more likely to be authentic and aren’t written with an eye to making money.

What are the alternatives to online reviews?

Instead of placing your trust in anonymous online reviewers, your research before buying a product or service should be more widespread. Ask around your family and friends for their own buying experiences or access blogs and other forums to see what is being said about these products. You’ll usually find that they discuss matters with more in-depth information and some disagreements too (which can help you decide).

One good example is a recent analysis of instant loans. Visit the page to see how they compared the claims of lenders with the reality to reach an unbiased decision.

Millennials’ guide to picking the right car insurance

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Finding the right car insurance company can seem very complex, especially if you’ve never gone through the process on your own. There are many factors to consider, including but not limited to price, policy offerings, billing, claims, and customer interactions, which is why trying to compare insurance companies can really throw even the most brilliant among us for a loop. On top of all this, the persistent myth that the only feature that really matters is price can make one’s search even more challenging. And if you happen to be a millennial, the whole thing may seem unaffordable. But fear not, because where there’s a will, there’s the perfect car insurance for you.

How the search for auto insurance differs for millennials

Fact: nearly 23% of millennials live with their parents, up from 13.5% in 2005. And, while this cost-saving measure may be a financial help in several key ways, car insurance is not one of them. Millennials who live with their parents will pay up to 73% more for auto insurance than those who own their own home. The lucky generation’s premiums average $1750 per year, compared to averages of $1205 for those who own a single family home and $1009 for those who happen to own a condo. And since insurers include age, type of car, zip code, and driving record among their risk factors, millennials do tend to get the raw end of the deal relative to previous generations due to their relative lack of experience with both driving and credit.

The good news? Even if you’re living at your parents’ home and not yet ready to move out, shopping for car insurance regularly can yield real savings. After all, quotes from a variety of carriers can differ by up to a $1500, and careful, selective shopping can save more than $50,000 over the course of a lifetime. And, of course, as soon as you are ready to move out on your own, car insurance is one of the very first expenses to revisit. This is smart even if you don’t end up buying a home, as auto premiums change from zip code to zip code, so your new neighborhood may lead to lower rates.

How to pick the best car insurance for you

Although car insurance offerings are fundamentally the same for many common carriers, and although low cost is obviously a prime consideration, so is a company’s record on customer service, the overall customer experience and the nature and quality of the company’s claim service, among other things. No matter what you do, don’t count yourself among the many who simply pick an insurer after they buy their first car and don’t bother looking at the details of the policy for years to come, because it may come back to haunt you when you actually need to use it.

Consider the following tips on how best to select the car insurance that’s right for you:

  • Do an annual rate check. Check rates from other companies to make sure you’re getting the best deal.
  • Shop around. If you stick with the insurance company your parents use out of convenience, you might not get the best deal. Or have the best experience, for that matter.
  • Ask for discounts. The best insurance companies offer discounts, among them are car insurance discounts for college students. You can usually find information about this when you apply online, but never hesitate to call a provider for more information.
  • Pick an insurer with a reputation for dealing well with claims, payments, and non-claim problems too.
  • Maintain good credit. Regularly check your credit score since a low score can really impact your premium.
  • Set the right deductible. A higher deductible reduces your premium, but of course, you have to pay more in the event of an accident. If you have a good driving record, you may want to opt for a higher premium. It’s a risk, but you could save up to 40%.
  • Review your coverage. Check to make sure you have enough liability coverage for bodily injury and property damage. Over time, costs and risk increase, and so should your coverage.
  • Report reduced mileage. By driving less, you may qualify for a lower premium. If you’ve changed jobs, are now working from home, or have become unemployed, call your insurer.
  • Take note of where your insurer sends you for repairs, as the repair shop may push for cheaper replacement parts rather than original equipment from the manufacturer (OEM parts).
  • Choose the right car. Vehicle damage and associated repair costs are a big factor in the price of auto insurance. When looking for a new car, compare the data on collision by vehicle model.
  • Don’t be loyal for the sake of being loyal. Unfortunately, sticking with the same company because it’s easier may not get you better rates over time. Some providers may even increase your rates indirectly because they know you’re in for the long haul.

If the above list overwhelms you, take solace in the fact that Clearsurance has already done most of the legwork for you — they’re empowering consumers by providing a transparent, unbiased look at insurance providers through crowdsourced reviews and ratings. Services like this are ideally suited to millennials looking to purchase car insurance for the first time as they go far beyond simply listing the best price: they provide real life ‘trust-scores’ and user experiences from which to glean valuable knowledge. Learn more about who consumers rate as the best car insurance companies in 2019 by visiting Clearsurance today!

If I Have Bad Credit Will I Be Able To Get A Mortgage?

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Having bad credit can often make a person feel as if they have no chance of owning a home in the near future. This is not the case, and while it is definitely more difficult to obtain a mortgage with bad credit it is not impossible. There are multiple options available, in order to aid people with bad credit history to obtain the house.

Previously multiple lenders were founded in order to help people to receive mortgages with a bad credit history. These mortgages are known as bad credit mortgages or subprime mortgages and are not as readily available as before, due to them being thought as the reason behind the financial crisis that occurred in 2008.

Today, lenders tend to be a lot more stringent when it comes to granting mortgages, mostly due to new regulations that have been put into place. This makes it even more difficult than before to obtain a mortgage if your credit history is not up to scratch.

What is regarded as bad credit?

Your credit score is the number assigned to you by credit agencies. This number is dependent on many variables and shows your ability to pay debts, as well as your past history of making payments towards any debts and credit arrangements. It allows financing company is to see how reliable you are when it comes to returning any money you owe, allowing them to make a decision as to whether they are willing to take on the risk of providing you with finance.

What is defined as bad credit can vary greatly from one lender to another. Generally, you will be regarded as having bad credit if you have previously defaulted on payments, have CCJ’s or any bankruptcies.

Being unable to secure finance if you have not borrowed before can also cause problems when applying for a mortgage. Due to lenders not being able to assess whether you will make regular repayments as agreed in the terms of a mortgage, because of you having no past history of lending can make it very difficult for financing company is to be able to come to a conclusion as to whether you are a risk when it comes to lending you money.

If this is the case you would most probably not have the ability to access as many mortgage options as other people resulting in offers with higher interest payments. This means you will also have to resort to taking out a bad credit mortgage.

What is a subprime mortgage?

A bad credit mortgage is just like any other mainstream mortgage, with one slight difference: they except people who do not have an immaculate credit history. Bad credit mortgages tend to not be as financially beneficial as normal mortgages. Their repayment and interest terms will normally be a lot higher than the mortgage is offered to people with good credit ratings. This is done to safeguard lenders from any risks that you may pose.

Additionally, the amount of deposit required to obtain a subprime mortgage tends to be a lot higher than the normal 5 to 15% required on a mainstream mortgage. If you are having difficulty with obtaining this large sum of money there are government schemes available to help you do this. Help to buy schemes allow potential homeowners to borrow up to 20% of the property price interest-free for five years from the government. This may aid greatly when it comes to obtaining a bad credit mortgage.

The process of applying for a bad credit mortgage:

The best way to find a bad credit mortgage is usually by utilising a mortgage broker. These brokers have a vast amount of knowledge as to the mortgages available on the market and the terms, thus enabling them to better advise you as to which mortgage you are most likely to be accepted for.

It is important that you avoid continuously applying for several mortgages, especially if you have bad credit. Most mortgages are designed for people who have a history of making repayments on time and a good credit rating. This means that you are more than likely to be rejected the most mortgages, resulting in further damage to your credit score. Instead of applying to a whole host of mortgages, it might be a good idea to have a conversation with your bank especially if you have a long-standing relationship with them. They may be able to aid you in finding a mortgage that you qualify for. – ukpropertyfinance.co.uk

The benefits of investing in UK property

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For a long time, property investment has been considered a more lucrative and promising venture than other types of investment. Investors are continuing to put their money into property, with the UK property market, in particular, attracting attention from around the globe. Despite uncertainty brought on by Brexit negotiations, the UK property market has remained strong, especially in cities with a good reputation for success.

Here are some of the reasons why UK property should be considered for your next investment move.

House price growth

While house price growth might be suffering in some parts of the UK such as London, other areas are continuing to thrive. The north-west has seen a steady growth in house prices and has presented the largest increase in property value compared to all other UK regions. Between July 2017 and 2018, house prices grew on average by 2.7 per cent in England, increased by 4.3 per cent in Wales, 4.8 per cent in Scotland and 4.4 per cent in Northern Ireland. In the north-west, house prices went up by 5.6 per cent, led by the region’s thriving key cities, Liverpool and Manchester.

Those that choose to invest in UK property in the north-west region should expect continued growth on the horizon. Predictions for the UK property market have revealed a five-year forecast with a 14.2 per cent average rise in UK property prices as a whole by 2022, and an 18.1 per cent growth expected for the north-west region. Big regeneration projects are taking place in the region’s key cities, including plans such as Liverpool Waters and St Johns in Manchester set to create new and vibrant city centre neighbourhoods.

As RW Invest explain in their article “Top 10 Tips for Getting Started in Property Investment”, house price growth is one of the primary reasons why so many people are investing in property. You can make some serious money out of the price rises, so long as you invest wisely. 

High rental yields

Rental yields are an important element of a buy to let investment. Like most aspects of the property market, the type of rental yields you can expect in some places won’t be the same as what you’d get in others. Luckily, a number of UK postcodes and cities have a track record for generating attractive rental yields. Some of the top performing cities for rental yields are Liverpool, Manchester, Leeds and Nottingham. Liverpool has a number of high performing rental yields and an average of 5.05 per cent, while Manchester boasts an average of 5.55 per cent. Nottingham follows behind with average yields of 4.46 per cent, and there are average 4.29 per cent yields in Leeds. With each of these top-performing cities being home to a number of popular universities, it’s evident that a large student population is a big driving force behind these high yields.

Growing demand

One of the final factors that can contribute to the success of property investment is a high level of demand for rental properties. In the UK, there’s a noticeable gap between supply and demand, with tenant demand increasing while the number of properties available for rent is falling. This shortfall in rental properties has been predicted to cause a 15 per cent rise in rental costs by the middle of 2023. While this might be bad news for renters, it’s a promising figure for buy to let investors hoping to generate higher rental yields on their property. Again, the north-west has been hit by a high level of demand, with rental price growth of 2.65 per cent in Liverpool and 5.76 per cent in Manchester. There’s been a recent rise in the number of people moving away from London and choosing to live up North. Manchester, in particular, has seen an influx of London leavers. People are selling their existing property in the capital to relocate, or moving to Manchester in the hope’s of buying their first home — something that’s a lot more difficult in London.