Purposeful investing

It would be hard to develop a strategy to pay off your debt if you had no idea how much debt you had. It’s just as difficult to develop an appropriate investing strategy if you don’t have a reason for investing. Without a purpose, it’s impossible to make decisions about the type of investments you should invest in, and without a goal - how do you measure your level of success?

People invest for a wide variety of reasons. The most common reason people invest is to save for their retirement. Most people want to stop working at a certain age, in order to enjoy the last years of their life without the stress of going to work every day. The only way it’s possible for people who are not independently wealthy (by an inheritance or a business that will operate without the owner’s input, for example) is to have money saved that can be used to pay expenses and entertainment costs once a person retires.

The other common reason why people invest their money is to reach a certain short-term financial goal.

Investing for Short Term Goals

While most people first think of retirement and long term investing when they think of investing, there are many instances when investing also includes short term goals. Buying a new vehicle, going on your dream vacation or purchasing a new home are all examples of short term investment opportunities.

Short term investing requires different strategies than long term investing, which makes understanding your investing purpose all that much more important!

If your idea is to have another income stream to supplement your salary, or to help you purchase items you don’t have the cash saved to buy, your investment portfolio should contain a mix of short and long term investments that pay dividends. It should contain low risk, high yield bonds.

If your investment purpose is to save for a specific purchase - perhaps your dream home or to take a vacation, it helps to know how much the purchase will cost and when you need the money. Armed with that information you can develop a strategy for investing.

Short term investments are known to be more challenging than long term investments, particularly if you’re not starting out with large amounts of money. Short term investments tend to carry higher levels of risk; but they also have the greatest possibilities for high returns.

Investing for Long Term Goals

The earlier you begin investing for retirement, the higher the amount of money you can create. Young investors can take advantage of compound interest, and even choose riskier investments that could result in higher returns because they have so much longer to recover from a loss than a person who is closer to their retirement age.

As you get closer to your retirement years, your long term investing strategy should contain much less risky investments - including bonds and securities, to help minimize your risks for losing your investment. The lower risk investments have lower rates of return, but should steadily increase.

Retirement investment portfolios typically contain a mix of various stocks, bonds, debt securities, index funds and money markets. Company sponsored retirement plans are great, particular those that match your contributions. It helps you build your nest egg a little faster and stretch your own investment dollars further.

As you age and get closer and closer to retirement, you should move your investments into guaranteed investments (like high interest savings accounts that are insured by the FDIC) to preserve your money so you know it’s there when you need it!

Understanding supplemental group term life insurance

What is Supplemental Group Term Life Insurance?

Supplemental group term life insurance is an added benefit if you are already covered under a group policy through your employer. Usually group coverage is not as comprehensive as you may desire as policies are written according to what would benefit the group as a whole. As an individual with a family of your own, you may have different needs that are not covered through a group plan. If you find yourself in this position, buying a supplemental term life policy would be a wise decision.

An employee is eligible for supplemental term life insurance if he or she performs all of their regular duties on a full-time basis (check with your employer as some companies consider “full-time” as 17.5 hours or more while other companies require you work the full 40 hour weeks). Again, you must already be covered under your company’s basic group term life insurance policy. Spouses and dependent children are also eligible for coverage if you buy a policy of your own.

What are the Benefits to Adding a Supplement?

There are a couple of benefits to purchasing supplemental term life insurance. The first is a waiver of premium. If you become completely disabled prior to your 65th birthday, the insurance company will continue to keep your policy intact and active until you become 65 years old. The stipulation is that your disability must last for nine consecutive months before the benefit can begin. If your disability continues indefinitely, the insurance company will not collect any further payments of premium from you. An individual is considered “totally disabled” when that individual is unable to work at any occupation collecting wages because of injury or illness. You must also provide proof of continuing disability annually.

A second benefit to taking out a supplemental term life insurance policy is the Accelerated Living benefit. If an individual is diagnosed with a terminal illness and given only 12 months or less to live, that individual may apply for a percentage of their combined basic group and supplemental term life insurance policies. The percentage is usually paid in a lump sum. Check with your carrier, as the benefit is usually 50% of the active face value amounts or $50,000.00, whichever is less. While an employee and their spouse are eligible for the accelerated living benefits, children of the employee are not. In most cases, coverage is portable -- which means you can take your coverage with you if you retire, reduce your hours or change jobs.

The only exclusion is the standard waiver of benefit payment should the employee or their spouse/dependents commit suicide within the first two years that the policy came into effect. Check with your carrier as in some states this exclusion applies to both sane and insane individuals while some states only the sane.

How Age Affects Your Policy

While premiums for supplemental term life insurance are literally just a couple to a few dollars per month, the rates are affected by age. The premium is based on attained age and then increases at various steps. You would have to check with your carrier for their specific criteria. Age 70 is a defining milestone for supplemental term life insurance policies.

Beginning at age 70, your coverage is reduced to 65% of original certificate face value. Beginning at age 75, you coverage is reduced to 45% of original certificate face value. Beginning at age 80, your coverage is reduced to 30% of original certificate face value.

One thing to keep in mind is that spousal coverage terminates at age 70. If the premiums are current, your spouse may choose to convert their individual coverage to a term life insurance policy of their own. Your dependents may also choose to convert their policies after their dependent status expires. They can obtain term life insurance policies in the amount of $25,000.00 or $50,000.00.

Supplemental term life insurance is a wonderful benefit as you can give your family an additional benefit of up to $270,000.00.

How to get affordable car insurance in maryland

If you drive a car on any public road in Maryland you must have car insurance. That’s the law. If you break this law you are subject to some rather severe penalties which include (but are not limited to) having your registration revoked and having your car’s license plates confiscated. There can be additional penalties as well.

In Maryland you are required to carry liability insurance, uninsured motorist insurance (UM) and you must carry personal injury protection (PIP). If your car is financed then your lender will undoubtedly require that you also carry collision and comprehensive insurance as well.

None of this insurance is free, which has many motorists in Maryland scrambling to get affordable car insurance. Fortunately there are things you can do to help keep the cost of insuring car as low as possible.

The first thing you need to do is to resolve to drive safely and legally. If you receive a speeding ticket not only will you be forced to pay a hefty court fine, your car insurance rates will also skyrocket – and they will remain high for several years to come.

Likewise, if you are convicted of drunk or impaired driving you can expect to pay two or three times as much for your car insurance for quite some time to come. Speeding and driving under the influence are both things that are totally under your control; if you are convicted of any of these offenses you have no one to blame but yourself for your higher car insurance premiums.

If you are in school and you can maintain a “B” grade point average then you can probably qualify for what is called a Good Student Discount, which translates into a monthly savings of about 5% on your car insurance premiums.

If you are 55 or older you may experience a rate increase based on age. However, many insurance companies encourage their older drivers to take a refresher driver’s course; for those who successfully pass such a course the savings on their monthly car insurance premium can be as great as 10%.

If you have an older car, especially one that is fully paid for, you may wish to consider dropping collision and comprehensive coverage. Dropping those coverages will save you considerably on your insurance premiums.

If you drop collision and comprehensive and you are involved in an accident your insurance will not pay for the repair of your vehicle – but to be honest, if your car has little or no Kelly Blue Book value then your insurance would not have paid much, if anything, even if you had paid for the coverage.

The final thing you can do is to increase your deductible. The more money you are willing to pay out of your own wallet any time you have a claim, the less your insurance company will charge you in premiums.

Now that you have designed the best possible car insurance policy for your circumstances it is time for you to get online and compare car insurance policies between different insurance companies and their rates. If you truly want to get affordable car insurance in Maryland then you will need to fill out all of the required information on at least 3 different comparison websites. In this way you will be certain to be comparing all of the car insurance companies in Maryland and you can rest easy knowing that you have truly found the most affordable car insurance in Maryland.

Seven important tips for credit repair

In today’s society, no one can overemphasize the importance of a good credit line. In fact, having a bad credit record is even worse than having no money at all. Without bad credit it would be very difficult to get loans and do other transactions that would soon become necessary in the future such as applying for an apartment. However, people with bad credit need not sulk since they can still save themselves from their bad record through credit repair.

Credit repair may be done with a help of a financial adviser but it also helps to make some adjustments yourself. The best way of doing this is by proving that you are indeed capable of managing your finances. There are many ways of doing this, some of them are quite simple but they can definitely help mend a broken credit record.

Here are some important tips for credit repair:

1. Be sure to have your accounts settled on time. Whenever you get your bills, pay them immediately even way before the due date so you would not forget. Credit bureaus have a high regard for payment history and they factor it in your credit score, taking up as much as 35% of the score. A good idea is to have your accounts registered on automatic transfer so that payments would immediately be made.

2. If you have past debts, pay them off, or at least show that you are trying to. If you do not have enough money to pay everything, keep paying even in small installments. This will show that you are indeed responsible enough in trying to clear your accounts. Pay as much as your budget allows and pay regularly. Credit bureaus will notice these efforts, increasing your chances of getting a better score.

3. In case you do miss paying some accounts, try to catch up immediately. Not only do credit bureaus look at your missed payments, they also check how long bills are kept unpaid. If you respond quickly, you can still show that you can indeed pay your debts even if it is a little later.

4. Register to vote. While it may not seem to be connected, registered voters do have better standings with credit bureaus. It can show that you are a responsible citizen as well as a responsible creditor.

5. Get hold of your own copy of your credit report. In the credit report, you would find a list of reasons you got a low score. Knowing this is necessary for credit repair and to avoid future mistakes.

6. Limit yourself to only one or two new credit accounts if you do intend to apply. Possibly, a bad-credit card and a bad-credit mortgage would be enough for you to manage easily. Getting several credit accounts at once may make you a hot object for credit bureaus.

7. Keep your old accounts, do not close them. Closing your old bad accounts will not erase them from your credit record. Pay them off and then keep them clean. Having old accounts can actually increase your average account age, which can help boost your credit rating and help repair your record.

Bad credit is not impossible to repair if you know for yourself the important steps to mend your broken record. Try these steps yourself and see your credit line improve.

Managing risk in your portfolio

Wealth is an abstract. It is sometimes defined as fecundity or sustainable spending. It is defined as the primary goal for investors and is measured by the level of ‘expendable income’ or ‘capital’ in their portfolio.

Many people define wealth by the total of their assets including real estate, funds, and investments. Others measure it by calculating the amount of money they can afford to spend. Either way, it is important to pick one method of calculating wealth, and stick to it.

How wealth is defined dictates how a person approaches investing. Benjamin Graham states that the investment management is the management of risks, not of returns. This is the foundation of a well-managed precept.

There are several methods of managing risks. Each one provides several benefits, depending on the investor’s aggressive behaviors or willingness to accept high-risk ventures. However, understanding risk can be tricky. One person, such as a broker, may consider a stock that does not perform well as a high-risk stock. A private investor may consider a low-risk stock anything that does not drop below the 10% level.

Individual Risk

This is the risk associated with the investor’s personal wealth. What can the investor afford to lose? And, how long can that investor leave their funds untouched. It is also important to calculate how much that investor needs to gain, and in what time span.

Managing Individual Risk

This is easy to calculate in the short term. Just estimate how much money can be comfortably invested. In the long run, it involves a few in-depth calculations. The amount of gains expected, and the impact of failing to meet expectations is a risk that must be written in black and white. When an investor is planning for their retirement, the funds must grow. The rate at which they grow depends on the number of years before retirement.

If the money is not needed, and its loss will not have a major impact on the investor’s wealth, then the investor can look at biotech stocks that may skyrocket if the lab discovers a new drug, or a cure for a disease, or will bottom out if the lab loses their funding.

Market Risk

This is the risk associated with the different markets. Can an investor survive a stock dive, or if the real estate bubble bursts. This will determine whether the investor can manage mutual stocks, or should stick with blue chip stocks. It will also determine whether the investor purchases a good home in a good neighborhood, expected to appreciate 10% in ten years, or penny stocks that might double in eighteen months.

Managing Market Risk

This risk is associated with the area in which the money is invested. One way to manage this risk is to stay within markets the investor understands. Another way is to avoid buying into both fields. Gold and Real estate are solid, but when they are increasing, stocks decrease, and vice verse. By understanding the risk and expectations in one, two, and five decades, the investor can create a good diversification package.

The first two have statistically based solutions; increasing risk tolerance addresses an emotional challenge. One way to manage risk tolerance is to minimize the negative impact of the negative risk.

There are two ways to manage risk. First, by building a cushion against risk. Second, by ignoring it.

Education

Education is a wonderful buffer against risk. It is not a magic spell to protect investors from every facing risk and losing money, but the more knowledge an investor has, the less often they will make a poor investment choice.

Reliable life insurance company which are the best companies

One of the first steps a person takes when determining whether a particular life insurance company is reliable is to check the financial rating of the life insurance company. A financial rating, given by independent research companies, gives you an idea of how financially strong a particular life insurance company is. If a life insurance company is financially strong, it should be a reliable life insurance company, right?

Simply put, yes. But when you’re looking for a reliable life insurance company, you must make sure the company is more than just financially reliable. To find the best life insurance company, you must find the company that fits your needs.

Before you begin shopping for the best, most reliable life insurance company, ask yourself the following questions. You’ll be better prepared when you start talking to life insurance agents.

Do I want a term or whole life insurance policy? Term life insurance policies offer life insurance for a certain period of time. They’re less expensive, but they don’t offer the same kind of savings components offered by whole life insurance policies. Whole life insurance policies offer life insurance for the rest of your life. They’re generally more expensive, but they offer savings and estate planning components.

Do I want to be face-to-face with a life insurance agent, or am I comfortable shopping over the telephone, through the mail, or online? While the last three shopping methods may be quicker or more convenient, many people prefer face-to-face communication when making a purchase as big and important as life insurance.

What kind of customer service do I expect? It’s definitely important to know the answer to this question before you start doing business with a life insurance company. As mentioned above, life insurance is a big and important purchase. Therefore, your insurance agent or the company’s customer service representatives should treat you the way you deserve to be treated – kindly, and with respect.

Keeping away from the joneses avoiding the affluenza epidemic

So you’re out mowing your lawn one day. You happen to glance up from your beat-up old mower across the street, where your neighbor is pulling into his driveway in a brand new luxury sedan while a team of hired gardeners carefully manicure his lush green yard. You don’t get it. His house is the same size as yours and you know the jobs that he and his wife have aren’t anything special. How does he have so many more toys than you? How can he afford them?

Well, rest easy my hard-working friend; if he’s like many Americans, he can’t. He’s just another victim of our country’s endless pursuit for bigger and better material possessions, regardless of if we can afford them or not. Sure a brief moment of jealousy might come over you for a moment or two, but it’ll pass. Resist that urge to “keep up with the Joneses”; you’ll be happy you did.

Why we do it

Americans are nothing if not great spenders. Status-symbolism runs rampant in our country, and today’s advertising would have you believe that everything is within your financial reach. With loans and credit cards available in a moment’s notice, we believe it too. But spending carelessly without real cash resources to back up the habit is putting us in bigger and bigger financial holes. So why do we do it?

Studies on the “affluenza” epidemic reveal several reasons why Americans spend the way they do. First, we work hard. The average American spends hours commuting to an unsatisfying job. Spending is a way to release the stress of the everyday grind while justifying why we slave away for 40-plus hours a week.

Also, television has made us believe that high-end items like BMWs and Tag Heuer wristwatches are to be had by everyday working stiffs, not just the super-rich elite.

These are both valid reasons, but what really drives our ultra-spending is our own insecurities and jealousies. Though it’s a fact that everybody struggles from time to time, we all want to project the image that we’re set financially and can afford the luxuries of life. This approach is just the beginning of a vicious cycle.

We all want to compare ourselves to our peers and own material goods that are on par or better than anything they have. We never stop to think about the poor or the homeless we see on the streets and stop to count our financial blessings. The endless quest for bigger and better toys makes us lose sight of what’s really important in life. In the meantime, we bury ourselves in massive amounts of debt that we’ll be hard pressed to ever climb out from under.

How to stop it

You can inoculate against affluenza, however. Start simply by setting a few long term goals. Planning on seeing the world after retirement? Then before you buy that RV now, picture yourself in 20 years on that African safari with your spouse. Don’t let purchases now affect future dreams. Sure, it’s not easy to sacrifice instant gratification for something far into the future. But just remember, a little willpower goes a long way.

Choose your loan protection carefully and be aware of the exclusions

When it comes to purchasing loan protection then you have to consider it very carefully and be aware that there are exclusions within a policy that could stop you from being eligible to claim. For those who would be eligible to claim then loan protection is invaluable when it comes to protecting against the possibility that you might find yourself out of work.

If you have monthly loan repayments to make and are in full time work then it could be worthwhile taking out loan protection to give you the peace of mind that you would be able to continue meeting them if through accident, sickness or unemployment you have to come out of work. Providing you have been out of work for 30 days or more than a policy would give you a fixed tax free income with which to continue meeting your loan repayments without having to struggle to find the money.

The loan protection insurance would continue to pay out for up to 12 months if needed and with some providers, for up to 24 months. You can choose to take loan protection to guard against accident and sickness only, unemployment only or for accident, sickness and unemployment together.

Quotes for the loan protection and the peace of mind it brings do vary widely depending on where you get your quotes and in order to make a fair comparison you do have to get several quotes. This however is easier if you go to standalone providers rather than the high street banks and lenders, when you shop around. Standalone loan protection providers will usually get the lowest premiums available on loan protection while securing a quality product. And, providing you have read the small print and the exclusions and know you are able to claim loan protection, it can be your lifeline if the worst should happen.

Umbrella insurance for greater coverage

When the amount of a claim against you exceeds the coverage provided by your home or auto insurance policy, you are saddled with the prospect of settling this excess liability on your own. Your insurance company will not cushion you against this contingency. However, there is a way out. To overcome this eventuality, you can obtain an excess liability policy, or an umbrella policy.

This policy will give you the required cushion against any claim exceeding the amount covered by your normal insurance policy. For example, suppose your auto insurance policy covers claims of accidental pedestrian injury up to an amount of $20000. If an accident does occur, and a claim of $50000 dollars is adjudicated against you, the insurance company will only pay the $20000 agreed upon, and you will have to pay the balance $30000 out of you personal funds. If you do not have the cash or any other liquid asset, then your home, or some other fixed assets could be at stake. You may even be reduced to a state of bankruptcy. This is where an umbrella policy can help you. An umbrella policy will take care of the excess amount of $30000 dollars that you would have had to pay from you own funds.

The umbrella policy expands the coverage offered by your home or auto policy. You can purchase this policy for coverage of up to five million dollars. Moreover, the premium is very low and you may have to pay just $300 to $400 a year for this coverage.

When the amount of a claim against you exceeds the coverage provided by your home or auto insurance policy, you are saddled with the prospect of settling this excess liability on your own. Your insurance company will not cushion you against this contingency. However, there is a way out. To overcome this eventuality, you can take an excess liability policy, or an umbrella policy.

This policy will give you the required cushion against any claim exceeding the amount covered by your normal insurance policy. For example, suppose your auto insurance policy covers claims of accidental pedestrian injury up to an amount of $20000. If an accident does occur, and a claim of $50000 dollars is adjudicated against you, the insurance company will only pay the $20000 agreed upon, and you will have to pay the balance $30000 out of you personal funds. If you do not have the cash or any other liquid asset, then your home, or some other fixed assets could be at stake. You may even be reduced to a state of bankruptcy. This is where an umbrella policy can help you. An umbrella policy will take care of the excess amount of $30000 dollars that you would have had to pay from you own funds.

Further, many companies will not offer you the umbrella policy unless you have your home or auto insured with them. They may also require you to maintain a certain level of liability on your home or auto insurance.

The umbrella policy does not only cover your cars and homes, but also offers personal injury protection which may include false arrest, false imprisonment, malicious prosecution, defamation, invasion of privacy, wrongful entry or eviction. The terms may vary according to each company, and from one state to another.

The umbrella policy is an excellent way to protect yourself against expenses for claims exceeding the coverage provided by your regular insurance policy. It can be bought for a very low annual premium, and proves very helpful in protecting your personal assets from lawsuits and legal action.

Good debt vs. bad debt

Many of you may be saying what is good debt and what is bad debt? Well let's start with debt. According to Webster's dictionary, debt is "something that is owed or that one is bound to pay to or perform for another or a liability or obligation to pay or render something."

Is debt really good, no it's not but the term "good debt" will be used here for illustration purposes. Good debt is anything that you can't afford to pay for up front but have the money to pay for on a schedule such as a mortgage or home equity loan. Bad debt is anything that you can't afford to pay for up front, that is usually something you want instead of something you need, or you can't or didn't save up the money to pay for it so you apply for a loan or charge it.

The most common form of bad debt is a credit card. Credit cards should be used with discipline. The best way to establish and maintain good credit is to purchase something with a credit card and then pay off the balance when the bill arrives. This shows the credit card company that you pay your debts on time and are a responsible shopper. Other examples of bad debt are cars and personal loans. I know you are saying, "But I need a car!" Yes, a lot of us need a car to get around but you don't have to buy a new car. The value of a car starts to depreciate as soon as you sign the paperwork. It is better to buy a used car and finance it for one or two years or save money to buy the used car in cash.

Examples of good debt are a mortgage and business loans. Some other financial experts may disagree and include car loans with this, but I believe anything that you can borrow against and that has a monetary value is a good debt. The value of a car only decreases, so although the car has a monetary value, that value is less than the original price paid for the car. An exception to the above statement is student loans. Student loans are a good debt because the end result is furthering your education which results in a higher paying job (monetary value).

The money from that job can be used to pay off your student loans. Some of you may say I can borrow against my credit card to get a cash advance; but it is still a bad debt because you didn't have the cash up front and you will be charged a higher interest rate and fee to get the cash advance. Also, the value of cash does not increase unless it is in a mutual fund or investment. The best way to determine if you have good debt or bad debt is to prepare a liability statement. This statement will identify your income and all of your debts and the difference of the two equals your total liabilities (your total debt).

Bad debt has no value or the value decreases over time. Good debt has value and has the ability to increase in value over time. Keep in mind at any time a good debt can turn into a bad debt if you miss a payment or if you are living above your means. Your debt-to-income ratio should be between 28% and 36%. If you debt-to-income ratio is above 36% then you need to do a financial health check and see how to cut expenses, reduce interest rates, and increase the amount sent to pay for your monthly debt payments.

Forex trading lessons a must for forex beginners

In the world's Major Economic Marketplace where exchanges achieve up to trillions of dollars each day, many people would really want to take part in this Marketplace. Aside from being the Major Financial Marketplace in the world, Forex is also the most liquid Marketplace in the world where trades are completed 24 hours a day.

A lot of Traders have turn out to be extremely wealthy Trading in the Forex Marketplace. And, many people who trade in the Forex Marketplace on a daily basis have found a great way to replace their day jobs. Some even became millionaires almost overnight by just Trading in this Economic Marketplace.

Trading in the Forex Market can be very attractive. However, you should also know that there have been people who suffered extreme financial losses in the Forex Market. It is true that the Forex Marketplace offers a very good money-making opportunity to a lot of people, but it also has its risks.

It is a fact that people who didn't have the right knowledge and skills Trading in the Forex Marketplace suffered huge financial losses and some even went into debt. So, before you enter the Forex Marketplace, it is essential that you should have the necessary knowledge and skills as a Forex trader in order to minimize the risk of losing money and maximize the potential of making money.

Many people who were doing well in the Forex Market have went through a Learn Forex to get the knowledge and skills needed to successfully trade in this very liquid and very large economic Marketplace.

In a Forex Trading Education, you will learn about when it is the right time to buy or sell, chart the movements, spot Marketplace trends and also know how to use the different Trading platforms available in the Forex Marketplace.

You will also be familiarized with the terminologies used in the Forex Marketplace. Even the basic knowledge about Trading in the Forex Marketplace can be a great help with your money-making venture in the world's largest Marketplace.

There are different Forex Trading lessons offered, all you need to do is select one that suits your requirements as a trader. Even crash courses where all the basic things about Forex will be taught to you in a short period of time, full time online courses, where you will learn all about Forex through the internet and there are also full time real life classroom courses where you can learn the ropes about Forex in a real classroom with a live professor.

You can also become an apprentice. On the other hand, in order to become skilled at a lot about Forex as an apprentice, you need to make sure that you have a seasoned Forex trader who can share a lot of things to you about the Forex Market.

Here are some of the crucial things you should look for in a Forex Trading lessons in order for you to get the sufficient knowledge about Forex Trading:

• Forex Margins

• Forex Leveraging

• Types of Forex Orders

• Major currencies

A high-quality Forex Trading lessons will also clarify a lot about the primary and technical analysis of charts. As a trader, knowing how to analyze a chart is an essential skill that you should have. So, when you are looking for a Forex Trading lessons, you should look for a lessons that offers essential and technical analysis instruction.

Stress plays a vital part in Forex Traders. Knowing how to deal with stress is also a skill that you should develop. A good Forex Trading Education should teach you how to deal with stress and trade successfully and efficiently.

As much as possible, you should look for a Forex Education that offer real Trading systems where students can trade real currency on the Forex Market or at least trade on dummy accounts in a simulated Forex Marketplace. This hands-on knowledge will greatly benefit you. In addition, the best way to learn about anything is by actually experiencing it. Live Trading and simulations should be offered in a Forex Trading course.

Forex trading online can get you where you want to go quicker and more profitably than any other form of trading. Check it out and see what Forex trading online can do for you!

High yield investing

What does High Yield Really Mean?

High yield investing has taken on a totally new dimension since the introduction of the internet and the basic personal computer. In the United States, a high yield account is considered to be anything over 5% monthly. Of curse as the old adage goes, the higher the yield the larger the risk. This is true. You can not expect to earn more than an average percentage rate with less risk. It just doesn’t make sense.

When discussing high yield interest accounts, are we talking about a savings account that produces a 5.4% annual percentage return? Well, yes. And no. It depends on who you are and what you consider to be possibilities and realistic.

By now most of us have heard about investment programs that claim to be able to produce ridiculously high returns. Traditional investors cringes when they hear terms like 25% per month for one year plus the return of principle, and they nearly quiver when they hear claims of 300% in eight weeks. Certainly these high yield investment programs must be scams. How can it be possible to produce such returns in such a short amount of time? And why isn’t everyone out there doing this if it can really happen? If these high yield investments hold any water then in just five short years we could wipe out poverty and homelessness and no child would ever go to bed hungry or sick again!

Are High Yield Investments Scams?

Believe it or not this question is not a simple yes or no response. It can’t be. The short and safe answer would be yes, they are scams. However, it is important to understand what they are and why they have not all been shut down by the government if they are nothing more than a way to steal your money.

High yield investment programs are not a place to try to earn an income. They are extremely volatile and unpredictable. People can and do make money from them, and sometimes it’s a significant amount of money. But don’t get excited and start rushing out to re-mortgage your house just yet.

Read every single disclaimer on a high yield investment program website and they will all say the exact same thing. High yield investing comes with the risk of losing money. Never invest more than you can stand to lose. Why? Because every high yield investment program will eventually crumble and those with money invested are going to lose.

High yield investment programs are based on principles similar to gambling. While most of do not, there are people in the world who make their living traveling around to casinos and gambling. Is it a scam? No. In fact most of us at least respect the fact that the individual is competent enough at playing casino games that they can earn a living at it regardless of how we feel about gambling ourselves. The same applies to earning a living from high yield investment programs. Most investors do not even consider them real investments and scoff at those who attempt to earn a living through high yield investing.

Most people who are able to fund their lifestyle and earn a living through high yield investment programs started in using one of two methods. They either jumped in with both feet at the first program that sounded good to them and lost everything they invested or they researched high yield investment programs until their fingers went numb before ever investing a dime. Either way, both parties came to the conclusion that to come out ahead in high yield investments programs they would have to do ample research and completely understand the system and principles before they were going to succeed.

Earning a living through high yield investment programs takes a system that is easy to implement and follow to prevent early closing and hefty losses. This system takes a lot of due diligence and of course, some very specialized knowledge about forex trading and even gambling.

Reading the website’s method of investment can tell the average high yield investor a lot about the security, or lack thereof, for any particular program. Most will admit to trading in forex, which any average investor can do with a little knowledge and research. Some will tell you that they are trading in commodities as well and some admit that they are also gambling with the investors’ money, literally. Any website that says they are gambling using fool proof methods of winning should absolutely be avoided at all costs. There is no fool proof method of gambling.

High yield investing is probably something to be avoided altogether, although that is an individual choice only an individual investor can make. However, if you choose to get involved with a high yield investment program and you loose your money, that was your choice as well. Just like it is possible to loose money in the stock market, you are likely to loose money in high yield investments. An investor that looses money in the stock market doesn’t typically file a lawsuit against the broker, so why are people so quick to file lawsuits and complaints when they loose money in high yield investment programs?

The answer is unpleasant but for the most part it is true. Greed. We can accept that there are poor investments out there and should we loose three or four thousand dollars in a bad investment we accept it as part of the potential outcome of investing. Yet because we got excited and our minds started spending the money we were hoping to see through a high yield investment now suddenly the people who run these programs are thieves. High yield investments are investments even if they do border on scams and you run the risk of losing your money. Remember the basic principle of any investment? The higher the return the more likely you are to lose your money.

High yield investments are incredibly risky and some of them are actually scams. Scam artists are everywhere and if there are people in the world who are willing to fork over thousands of dollars in the unrealistic hope that they can turn it into ten of thousands of dollars in a relatively short period of time then there will be people who are willing to steal that money from potential investors.

People are willing to donate their money to any valuable cause, so there are people who are willing to set up phony charities to steal donations from giving people. That certainly doesn’t make every charity a scam and people aren’t going to stop donating to charities of their choice. Just as there are individuals who will take advantage of people’s kindness and desire to give to charities, there are individuals who are interested in scamming money from people who are trying to improve their financial portfolio through high yield investment programs. That doesn’t mean every single high yield investment program is a scam.

The one thing all high yield investment programs do have in common is that sooner or later they will all fold, even those that start out being profitable. Just because a high yield investment program starts off producing the returns that it proposed in the beginning doesn’t mean that it will continue to do so over a long period of time. This is how the high yield investor gets dramatically burned. One or two programs that delivers for a period of time doesn’t mean it’s time to quit the job and devote all the available resources to high yield investing. It means that one or two programs are doing well. They will not do well forever and sooner or later they will crumble. That is the nature of high yield investing.

High Yield versus Conservative Investing

Which investment strategy is right for you? Only an individual investor can answer that question for their own interests. Some people can tolerate the significant risk factors while others prefer the stability of the more conservative and conventional methods of investing. Some people are more willing to take a gamble than others, and by all means high yield investing is a form of gambling.

There are dramatically fewer scams in conventional investing. Some people will always believe that high yield investing is a scam and there is nothing that will convince them otherwise. Just because some people are able to be successful doesn’t mean that a program is not a scam. And just because something is a scam doesn’t mean that some money can’t be made anyway. Does it make it right or real or worthwhile? Again this is something that each individual investor needs to determine for themselves.

For solid investment advice and a clearer path to investment success, independent advice and research is the best way to go. For all kinds of independent investment advice, stop by onlinetradingideas for comprehensive investment strategies, advice, and independent research. This site is particularly useful for making the most from conventional trading ideas and profiting from forex trades without having to enter the realm of high yield investment programs.

The fha loan basics

FHA loans are a great option for anyone looking to buy a home with little money for a down payment. In general, FHA loans require only a 3% down payment. In addition to the low down payment, there are several aspects of FHA loans that can help you decide if an FHA loan is the best option for you.

The basic FHA loan, 203(b), can be used to finance the purchase of a new or existing, one - to four-family, owner occupied, dwelling. This means that an FHA loan could be used for places such as condominiums, townhouses, duplexes, or traditional homes as long as the residence is being used as the borrower’s residence.

There is also a 203(k) loan, which is available to rehabilitate an existing residential dwelling. This loan allows the borrower to receive a loan based on the appraisal of the property with specified improvements. There are a variety of repairs and improvements that could be covered by this type of loan, including replacing floors, tile, carpet, roofing, siding, plumbing, electrical work, major landscaping, and patios. Mortgage payments can be postponed up to six months while repairs are being completed if the residence is uninhabited. Tax or insurance payments may still be required during this time period.

The amount provided by FHA loans is limited by the median house price in a region as well as the FNMA and FHLMC loan amounts. To see what the loan limits are for your area, you can go to https://entp. hud. gov/idapp/html/hicostlook. cfm.

FHA loans can have fixed or adjustable rates. FHA ARM loans have the same qualification guidelines as fixed-rate mortgages. They also have an interest-rate increase cap of 1 percent per year and 5 percent over the life of the loan.

Mortgage insurance premiums (MIPs) are required with FHA loans. There are two types of MIPs associated with FHA loans: initial premiums, which are paid at the time of closing, and renewal premiums, which are paid as part of the monthly payment. The rates charged are based on the terms of the loan and the amount of the down payment. The MIPs renewal premium is dropped when the equity reaches 22%.

In addition to these FHA basics there are many details which are important to understand. A great resource is a good lender. The FHA has given certain status to lenders that can underwrite and approve FHA loans. These lenders have a Direct Endorsement or DE. Making sure that your lender has their DE will ensure more efficient handling of your loan and your questions.

Are there risks involved with debt consolidation services

Are you currently carrying a massive debt load? Do you wonder if it another bill collector ever time your telephone rings? Do you wake up at night wondering if you’ve forgotten to pay something? If so you may want to consider seeking the help of a debt consolidation service.

And if you choose a debt consolidation service that does not charge a fee, one that is already subsidized by many of the creditors that they aim to help repay, you could benefit even more because they will be putting the entire amount that you pay towards your outstanding debts instead of keeping part of it as their payment.

However, non-profit debt consolidation services offer many other services than just debt consolidation and repayment. They also offer consumers advice on keeping their finances on target, developing workable monthly budgets and how to repair a poor credit rating.

Getting your finances straighten out is of course the first step. The debt consolidation service will help you make a list of all your outstanding unsecured debts, how much you owe to each of them and what the total amount you should be paying every month is.

The next step is to work out what your monthly expenses are. These include your mortgage or rent, your utility bills, child care expenses and any other mandatory payments you must make, especially if they are guaranteed by your property. Once your budget is done you can decide how much you can spend each month to pay towards your debt consolidation.

Once you know how much you can actually afford to spend each month in repaying your debts, the debt consolidation service will contact each of your creditors and ask them to agree on a lower repayment amount each month. Sometimes they can even get your creditors to lower their interest rates or eliminate some of the fees that they have been charging you for being late or over your credit limit. Most creditors will want to work with you because they realize that if they don’t negotiate a lower payment, they are unlikely to receive any money for the outstanding debt.

Now let’s talk about what risks are involved in using a debt consolidation service. Basically, the only risk is if you use a debt consolidation service that is not legitimate or professional. Do some research and even ask your creditors if there is a specific company they work with regularly that they can recommend.

Beyond that there really is no downside. And the upside is that you will have peace of mind in knowing that your bills are being paid on time every month.

Consolidate debt with debt consolidation refinance

You want to improve your financial situation by consolidating your debt, but you simply cannot find the time to meet with a consolidation professional and start the process. If this sounds like you, or even if it does not, you will be glad to know that online debt consolidation is possible.

Many postpone bill consolidation longer than necessary while, in the meantime, wasting payments on interest rates higher than would be on a consolidation loan.

Online debt consolidation services can help eliminate bad credit just as in-person services and can often lead to lower interests and a much better deal. You should have no problem finding useful websites providing the information you need. In addition to debt consolidation loans, you can find credit counselors, financial education services, credit repair clinics, housing advice services and general debt management services. You can also compare companies and the services they offer, particularly comparing their rates. Debt consolidation companies may be banks, mortgage companies or loan companies and the programs they offer can vary by location which is another good reason why websites is a good tool to use.

Your counselor or consolidation agent will, first, do an assessment of your finances and debt situation, taking into consideration your assets, liabilities, income, expenses and debt. They will give you advice based on the information they review and help you develop the best plan to improve your debt situation. Counselors will help you create a budget and advise you on how to improve your money management. The consolidation professional can negotiate an agreeable plan with your creditors, lowering the interest rate and sometimes even the payoff amount.

It is important to understand, though, that the consolidation refinance loan is obtained through using the equity in your home. You are simply using your equity to payoff outstanding debt, including credit cards, personal loans, medical bills or any other debt you may have. Though you are indeed adding to your debt through the loan, you are paying off existing debt from money gained through the equity you already had in your home.

A debt consolidation refinance plan can work for you do your research, implement it carefully and follow-through with the plan. The overall goal is to eliminate your outstanding debt and alleviate the tension it carries with it. Debt consolidation refinance can help you break the cycle of poor financial management and spending habits and get a fresh start!

How to get a mortgage you ll be happy with

These days, may people have poor credit. With the explosion of cheap and easy credit, more people have been landed with a poor credit rating. This has led to the phenomenon of the sub-prime mortgage.

However, simply because you have an adverse credit history does not guarantee that you will qualify for an adverse credit mortgage.

The reason for this is the lender must first weigh the risks a particular applicant poses and then make a decision to approve the application or not. In some cases, the risk is too high and the application is denied.

In other cases, the risk is moderate and the lending company simply increases the interest rate to account for this. There are many things a lending institution or sub-prime lender might do in order to account for an adverse credit history yet still approve the mortgage loan application.

The first step towards buying your property is to find out exactly how much money you can borrow. In the United Kingdom, this is worked out according to your income, usually three times your annual salary before Tax and National Insurance are taken away i. e. your ‘real’ income, not the one on your paycheck.

Some lenders will offer up to six times your salary! They're not doing you a favour. A mortgage is a fat loan that has to be paid back. Default on it, then go bankrupt, and you may find it impossible to get credit of any kind.

Before taking the plunge, it’s important to improve your credit rating as much as possible. Before you fill out any applications, take whatever steps you can to improve your credit. Pay off old loans, and once they are paid off, ask your creditors to remove negative information from your credit report.

If you need new, positive credit listings, and can’t get a normal credit card, consider getting a secure credit card; one which is issued against a guarantee/collateral. This collateral is usually a deposit in the issuing bank; you can borrow up to this amount.

An easier route is a department store credit card; make a few charges on it, and pay them off promptly. The goal is to get positive entries on your credit report. Though this sounds a little desperate, it is the best way in which you could establish good credit with a lender.

Ensure you pay all your bills on time (or before time); never later than the due date. A positive credit history would be extremely helpful in getting you a mortgage.

The best thing for people to do when applying for a mortgage is to talk to their broker regarding the types available and the options they qualify for. This way, you'll have a better idea of what is available to them and then can make an informed decision.

However, be aware that some mortgage lenders will pay some brokers commission for custom pushed their way; it's better to make sure that you are using an independent broker to get you the best mortgage for your circumstances on the market.

Try to beg or borrow money from friends and relatives before applying you’re your mortgage, if you sure you can repay them quickly, and keep them loving you(!) Revise your plan. How much do you really need to realise your dream, in a practical sense?

If you end up getting a mortgage with a sub-prime lender and aren't happy with your interest rate, remember that you can always remortgage again later. Be sure to maintain a good repayment history and work to improve your credit rating so you will be ready to remortgage again when the time comes.

What is financial security

Wouldn’t it be great to be financially secure—to never have to worry about money?

What would it take to get there? In fact, what exactly is financial security?

Ask 10 people to define how much money it takes to attain financial security and you will probably get 10 different answers. For some people, financial security is having $10 million in the bank. For others, it’s $50 million.

I doubt anybody would say $1 million. Being a uni-millionaire isn’t what it used to be. With the median home price in the United States around $220,000 (the median price in my hometown, Seattle, is pushing $425,000), there may not be much left after paying off the mortgage. Even having the full million in the bank earning 5% per year will only produce an income of $50,000 per year. That’s not bad, but not enough to jet around the world and party with Paris Hilton, Mick Jagger, and Diddy.

What about $10 million? At 5%, that will generate an annual income of $500,000—without working. Now we’re talking some real money!

The problem with defining financial security in these terms is that having $10 million, $50 million or even $1 million is a pie-in-the-sky dream for most Americans. We’d all like to have millions of dollars, and it’s not bad to aspire to that goal. The problem is, if we define financial security by such large amounts of money, most of us will believe that it’s out of our grasp. Instead, we should use a realistic definition of financial security that can be achieved whether somebody makes $10,000 a year or $1,000,000.

First, let’s look at what financial security is not.

Financial security isn’t making or having a certain amount of money. There are many people who have made millions of dollars who are not financially secure. Stories about musicians, superstar athletes and multi-million-dollar lottery winners who end up in bankruptcy court are so common that they’ve become a clichй. If someone makes $500,000 a year, but spends $600,000, are they financially secure? Of course not.

Financial security also isn’t limited to being independently wealthy, having servants bring you martinis by the pool, and flying your private jet to Monaco to party with heiresses, super-models, and rock stars. If that’s what you want, then go for it, but this is a very narrow definition of financial security.

I prefer a broader definition, one that puts financial security within the reach of anybody with a desire to improve their financial situation, and a little bit of discipline.

To me, financial security consists of 4 things:

1) Being debt-free

Consider two women:

Jill:

Makes $35,000 a year.

Has $250 in her savings account.

Owes $10,000 on her credit cards.

Joan:

Makes $35,000 a year.

Has $10,000 in her savings account.

Owes $250 on her credit cards.

Which woman do you think feels financially secure? Which sleeps better at night?

Certain debt is understandable. Few people have the money to write a check for a car or a house. Borrowing money for an education or to start a business may also be acceptable, but borrowing money for other reasons is probably a mistake.

How many of you are still paying off the credit card debt for:

- The vacation you took last summer?

- The elegant, romantic Valentine’s Day dinner last February?

- The pair of expensive Italian shoes you just gave to Goodwill?

- Christmas presents your kids no longer play with?

- Electronic equipment that has since become obsolete?

When you owe somebody money, they have power over you. You go to work, even if you don’t want to, because you have to pay back your debt. If you don’t pay, you can be sued, your car can be repossessed, or your house can go into foreclosure. That doesn’t sound like security to me.

2) Being in control of your expenses

As I mentioned earlier, if you earn $500,000 a year, but you’re spending $600,000, you’re on your way to the poorhouse. If you control your expenses so that they are less than your income, you can save and invest the extra money, and you’re on your way to becoming financially secure.

3) Consistently increasing your savings/assets/net worth on a monthly basis

Most people have little to show for years or even decades of hard work. For whatever reason, they can’t or won’t save money and they’re one paycheck away from being destitute.

We should focus on saving money every month. It’s a great feeling to watch your savings grow, especially because the interest compounds without any extra effort from you. Instead of you working for money, your money can work for you.

4) Not being forced to work at a job you dislike just to pay the bills

Many people live paycheck-to-paycheck and are stuck at jobs they don’t enjoy because they have to pay their bills. If they quit their jobs or were laid off, it wouldn’t take long before they were in dire financial trouble.

If you are debt-free, control your expenses, and focus on increasing your savings on a monthly basis, you can survive tough times, such as a layoff, for months, or even years, without a change in your lifestyle. You will also have the freedom to quit a job you don’t like and take your time finding a new job, preferably one that you will enjoy.

Financial security is an admirable goal for which we should all strive. However, it’s important to define financial security so that it is achievable for the average American. Being debt-free, controlling our expenses, increasing our savings every month, and doing what we love can lead to happy, fulfilling, and prosperous lives for us all.

Avoid foreclosure and save your home

No homeowner wants to face foreclosure. Losing a home can be one of the most traumatic financial events in a person's life, but it is happening every day. Here are some tips that can help you avoid foreclosure.

Early action is key. Few people wake up to find that their home is in foreclosure. There are always warning signs that precede the event. Being aware of these warning signs and taking fast, decisive action early on can mean the difference between keeping your home and losing it.

As soon as you know that you are going to miss a house payment, contact the lender. Contacting the lender early on allows the lender to help you work out alternatives. The truth is most banks do not want to take your home. They do not want the hassle of foreclosing, maintaining, and then selling the home. They would much prefer that some arrangement be worked out, but this often requires your early contact with them.

You should always follow up a phone call with a letter. You can draft a hardship letter and send it to your lender. This is not a good time to be too creative. Be specific about what caused the payment delinquency, make it detailed and be honest, but also be concise.

Do not accept a short sale unless you absolutely have no other choice. A short sale is when the bank or lender agrees to sell your home for less than what you owe. The difference between the selling price and the amount you owe will still need to be made up by you, and, of course, you will lose the home in the process.

You will find that being polite and patient with lenders will go a long way. There are many solutions that a lender can offer you. These might include extending the repayment period, suspending payments for a few months, or tacking the missed payments onto the back end of the loan.

You may also want to talk to your lender about extending the contract. For example, if you have a 30-year fixed rate loan, perhaps you can change it to a 40-year loan. Not all lenders will be willing to do this, but it is certainly worth asking about as the difference in the payment amounts can be the difference between keeping the home and losing it.

Refinancing, in general, is also a common option but homeowners should understand that refinancing is much easier to get when the housing market is moving up and less easy to get when the market is moving downwards.

Another option for some homeowners is bankruptcy. This is an option that must be decided on based on the advice of an attorney. Not all homeowners can find relief from the bankruptcy court. For this reason, you must speak with an experienced attorney who can fill you in on the details and whether or not your home can be protected.

Avoiding foreclosure is not always easy and it can be very stressful, but do keep in mind that foreclosure will remain on your credit record for seven years. It may be up to four years after a foreclosure that you will be approved for regular interest rates again. These are just a few of the reasons that you should work as hard as possible to avoid foreclosure.

Avoiding private mortgage insurance

Some lenders require private mortgage insurance, or PMI, when you obtain your mortgage. It can cost you hundreds, even thousands of dollars each year. It is rather easily avoidable, however, by simply making different financial arrangements. Here are a few ways that you can get out of this extra financial burden.

Private mortgage insurance, sometimes also referred to as Lender's Mortgage Insurance (LMI), is required by law if you borrow more than the necessary 80% of the loan to value (LTV) of the house. Once you go and borrow beyond this 80%, PMI becomes necessary. PMI can range anywhere from two-tenths up to nine-tenths of the total amount of the loan.

Lenders look at loans larger than this value as being a greater risk to themselves. The private mortgage insurance is designed to offset their risk. However, what has actually happened, is that while it makes the lender more comfortable, it can also make it that much harder to get a mortgage because now the payments become larger to pay for the PMI. There are three ways around this problem.

* Make A Larger Down Payment

When you come up with the remaining 20% of the value of the house, you then make it unnecessary to pay the PMI. Simply by putting down this amount, you can save hundreds of dollars each year. Even if you have to borrow the money from a relative, the savings will make it worthwhile if you can produce cash at closing.

* Piggyback Loans

This is a recent feature among lenders to help people have a way around PMI. Instead of taking out one mortgage, you actually take out two. The first one is for 80% of the amount you need. Obviously, if you go more than this, you pay PMI. This becomes your first mortgage.

A second mortgage is taken out at the same time, as a piggyback on top of the other one, typically either for 10%, or even 15%, of the remaining balance. The amount not included in this amount is expected from you as a down payment. These percentages may vary with different lenders, but they will be similar.

* Reduce Amount Owed

Private mortgage insurance was designed to be required only when more than 80% is borrowed. This means that mortgages should contain clauses in them that automatically eliminates this added charge when you get the principal down to 80%. The lender can, however, require you to pay PMI until you actually bring it down to 78%, and you must be current with your payments. (High risk loans may have different terms.) In some mortgages, however, there may be a required period of time to pay the PMI - even if you pass the 80% mark. Still, some lenders may let you talk them into removing it once you do so.

If you already have a mortgage and are paying PMI, it would be worth it to make larger payments if you can just to be rid of it. Once you reach the 80% LTV, PMI can usually be removed soon after.

In 2007, if you took out a mortgage this year and are required to pay PMI, you may be able to claim some of it on your taxes. The main requirement is that you make less than $110,000 for the tax year. It may not be available after this year.

Your first car loan what you need to know

So that bucket of bolts you drove throughout high school and college has gasped its last exhaust-filled breath. It’s done. That means you’re in the market for a new car. Soon you’ll brave the treacherous world of the car lot. Be careful, it’s a jungle out there. Eager salesmen hover like vultures, ready and willing to separate you from your hard-earned cash.

Once you decide on a car, you’ll then have to survive the depths of the dealership, where finance managers lurk at every corner—pen and paper in hand, waiting for you to sign on the dotted line. But don’t worry, with a little prior planning, you can get that new car without breaking the bank.

First off, you need to make a decision: buy or lease? If you like to drive a car until it dies—and with today’s autos running well past the 100,000 mile mark—then you’ll probably want to buy. However, if you see yourself in a different ride every couple of years, then leasing might be the right option for you. In a lease, you’re essentially renting the car for a pre-determined amount of time (usually three years). During that time, you’ll have to keep the car in tip-top shape and only drive it for an agreed-upon amount of miles per year (usually around 15,000). After your lease is up, you can purchase the car at a residual price or start a lease on another car.

Once you decide on buying or leasing, it’s time to figure out how you’re going to pay for it. First, decide how much you can afford to spend on a new car. As a good rule of thumb, many experts suggest that you spend no more than 20 percent of your net income per month on a car payment and other related auto-expenses.

Next, decide how you want to pay for it. Once you’re on the lot and fall in love with your dream car, the salesperson will do everything in their power to get you to finance the car through the dealership. Auto financing is a big money industry, and car manufacturers would be remiss to not take advantage of it. Financing with the dealership is tempting, as it’s the quickest way for you to drive off the lot in your new set of wheels.

But buyer beware, dealers know that buying a car can be a mentally exhausting experience, and finance departments will often add hidden fees in the paperwork for services or features you don’t want (e. g., extended warranties, service agreements, etc.). Dealerships also offer attractive financing deals like rebates or low interest rates, but many of them depend on your credit score—which you should always know before you even step foot on the lot. You can check your credit score and correct any errors by visiting equifax. com, experian. com, or transunion. com.

If you want to be a truly empowered car buyer, then secure a loan through a bank, credit union or other lending institution before you buy. You’ll generally get a lower interest rate than what the dealership can offer you, and you’ll essentially become a “cash buyer”. This means you’ll have more negotiating power on the total price of the vehicle, lower monthly rates, and no chance of the dealerships finance department sneaking in any hidden fees into a finance contract. Most lending institutions, upon approving your loan, will give you a check that can be made out to a dealership. Negotiate the price of the car along with tax and licensing fees, and off you go.

Whether you lease or buy, finance through the dealer or through a separate lending entity, always read every contract that requires your signature thoroughly. Make sure the figures in the contract are correct and that you understand all of the charges included. Also, if at any time you should feel pressured by a car salesman or lending agency, walk away. Remember, you are the buyer, therefore you have the power.

Happy hunting!