art-of-finance-blog

[art-of-finance-blog]

For auto insurance, what does an insurance deductible mean?

The deductible is the portion of the covered cost that you are responsible for. The bill amount that is over the deductible is the amount that the insurance company will pay for.

For example, if the deductible is $250 and the bill to repair is $1000. You as the owner will be responsible to pay $250 of the bill. The insurance company will pay the remaining $750.

[art-of-finance-blog]

Don't give companies more money!

Pay your bills on time!

This is pretty easy advice to follow. However, more often than not it is seldom followed. Why pay late fees or additional charges in addition to your bill!

Don't worry! There are several ways to make life easier.

One is to enroll in autopay. Most bills can be paid using autopay as long as a credit card is used. Combine this technique with fraud prevention and you are in pretty good shape. Not to mention the rewards bonus received from using the credit card. Just make sure to double check your monthly statement to make sure there are no mistakes with the billing system.

The other technique is that most online banking companies allow you to receive the billing statements thru the bank. Typically if you have free online checking you can add the payee to your list and your bank will automatically start receiving the bills online. This way you can be digitally notified (email or text) when a new bill arrives rather than dealing with snail mail where you may easily forget.

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Can you explain what it means when a prepaid credit card has a minimum load amount of $100? Does this mean that you have to keep a minimum of $100 on it all times?Thanks!

When you would like to recharge your card, the minimum load is the amount that must be added. So when you would like to put more money on the prepaid credit card, you must re-load at least $100 or more. It does not mean that you have to keep a minium of $100 at all times. 

Some cards may also specify a minimum initial load and then the minimum re-load amount separately. In this case when the card is first purchased this refers to the minimum initial load. The minimum re-load refers to amount when recharging the card the minimum amount that must be re-loaded.

Please let me know if any further questions. Thank you for the question.

[art-of-finance-blog]

Take a stand against excessive banking fees

Banking fees are for suckers. Find a bank that does not.

There is no reason for the consumer to not stand up against excessive banking fees. Between the numerous national banks, local banks, and credit unions there is enough choice that you don't need to be locked into a bad deal.

For example, most banks offer free checking. If you bank charges you for online checking and a yearly maintenance fee, do research on the competition. If you would like to stay with your bank, talk to your representative. Inform that you are a loyal customer, have been with the bank for a number of years, though the excessive banking fees are giving you a concern and burning a hole in your pocket. There are some neighboring banks which offer their services for free and you are considering a switch. More than likely they will work with you to remove the fees. If not switch to the other bank!

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[art-of-finance-blog]

Maximize credit card rewards

 Consider a rewards credit card. Many will give 2% on ALL purchases

There are many sites out there that compare rewards for credit cards. Personally I chose AMEX as it gives a consistent 2% rewards on all purchases.

Some cards vary their rewards based on the purchase type such as gas, grocery, electronics, food, etc. If you have the time you may go the extra mile and decide to carry multiple cards. Or it may just be easier to get a single card that gives a consistent percentage. 

The bottom line is get at least 1 credit card that pays decent rewards. When you spend there's no reason not to get a little bit of that cash back!

https://www.google.com/advisor/uscredit

http://www.creditcards.com/

http://www.bankrate.com/credit-cards.aspx

[art-of-finance-blog]

Companies giving free money thru 401k!

 Max out your company's 401k plan for matching contribution

Free money is always great! When joining a company, make sure to read the benefits regarding 401k. Most companies will make a matching contribution up to a certain percentage! For example, if you invest 3%, your company will also invest 3%! Let's say you are 23 years old. That extra 3% compounded over 30 - 40 years will realistically grow into thousands of dollars or more

Invest in yourself and take the free money!

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[art-of-finance-blog]

Online credit card security

When purchasing online, use your bank's online service to generate a credit card number with an immediate expiration date and a credit limit just high enough to cover the purchase.

In today's online world, it's not safe to take anything for granted. Large corporate sites may be hacked behind the scenes without the general public being formed. Typically an under the table deal is made to keep the hackers from informing the public.

To help protect credit cards, most online banking sites offering the ability to generate a virtual credit card number. Use this to generate a virtual number that sets the credit limit and the expiration date. Set the credit limit just high enough to cover the purchase, no more. This way even if the site becomes compromised and the credit card number is stolen, it's already maxed out and unauthorized payments can't be made.

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[art-of-finance-blog]

Choosing a rent price bracket

Target your rent to be 33% of your net income Balancing your personal budget and allocating income goes a long way towards stability and peace of mind. Most management companies require a credit check with a rental application. One of the ratios they look into is the net income to rent price. This ratio is important for several reasons. One is that there are other expenses to pay such as food, utilities, entertainment, etc. If the majority of income is going towards rent less money is available for other expenses. It also makes it difficult to automate savings. Another reason is financial uncertainty. An unexpected job loss or large medical expense will leave one scrambling for funds. With rent eating a large part of expenses, it makes it harder to handle such events. So try to plan and budget large costs like rent accordingly. http://art-of-finance.appspot.com/random/21001