5 Smart Financial Planning Tips for Success

One of the best ways to secure your future can be to learn about successful financial planning. In fact, doing so can give you peace of mind now and later on. Consider incorporating some or all of these financial planning tips into your life.

1. Learn How to Budget

Firstly, there are plenty of free budgeting resources you can take advantage of online. These can be useful for knowing how much money to save and spend on needs and wants. And regular budgeting can reduce stress so you can sleep better and gain inner peace.

2. Contribute to a Savings Account

Having extra money in a savings account can become a reality when you pay yourself first. If you wait, you likely won't save any money at all. 

For one, you can set a portion of your paycheck to automatically go to your savings account. Further, opening a high-yield savings account increases the money you save.

3. Gain Financial Planning Knowledge

You can learn about important financial planning concepts by reading top finance magazines, books, and blogs. For example, you can get educated about retirement planning, investment planning, and much more. 

The more you understand your finances, the more power you can have over them. Besides this, you can gain inspiration from what you read and stay motivated to achieve your worthwhile financial planning goals.

4. Invest

When you invest, you have the chance to build wealth over time. Of course, you'll need plenty of patience and self-control. But investing can help you stay ahead of inflation, save on taxes, and meet other financial goals. 

One of the first things you'll have to do to be successful at investing is to understand classic investment strategies. Since investment products and companies can be complex, it's vital to understand what you're getting yourself into beforehand. This can help you avoid making costly mistakes you'll regret later.

5. Have a Retirement Plan

Making small, consistent contributions to a retirement plan can add up to significant savings for your future. Making wise decisions with your money in the present can also help you save for your future healthcare needs, among other things. And when you get older, your retirement can be stress-free.

Given these points, financial planning can give you a smart start to a better future. Indeed, learning to take care of your finances in small steps can make it easier to achieve your goals. But it all starts when you take that first step toward financial success.

Important Things for All Seniors to Know About Insurance as They Age

There are countless changes that come with age—many of these changes pertaining to your lifestyle and finances. Many people don’t realize that as they age, their needs change, thus their financial distribution and insurance coverage will (or should) change as well. What you might need from your health, car or home insurance provider today may not be what you need next year as a senior. That's why it is important to evaluate and reevaluate your insurance as you age. Read on to learn about the changes that will take place, and how adjust accordingly. 

Health Insurance Changes

When you start coverage with a certain health insurance company, the plan you receive may be selected as your best option when you start it. It may cover accidents and some disease-related incidents, but chances are that it might not cover your medications as a senior. To ensure that your health insurance will cover you, it's important that you find out what procedures and medications your health insurance covers. You should find out if there are any transitional programs designed for adults whom are reaching their older years. You should even ensure that your insurance plan has health providers in your area, as access to preferred health providers is one of the most important concerns for seniors.

Life Insurance Can Expire

You may have started working thirty or more years ago. The first thing you might have done is to purchase a life insurance policy that you've been paying on for some time ever since. The problem is that your life insurance policy might expire, especially if you purchased a term life insurance policy. The professionals at Steers Insurance, an insurance company in Newfoundland, suggest that you contact your life insurance provider to ensure you are still covered as you age, and when your policy expires. 

Car Insurance Can Become More Expensive

The cost of car insurance is decided by a complicated risk-assessment equation that calculates everything from your driving record to the period of time you've gone without an accident. Your age, your health status and even something like your credit score can affect how much you pay. If you find that your car insurance rates have risen significantly, then the first thing you should do is to talk to your insurance provider. They may have a plan that fits your lifestyle as a senior with reduced rates. 

Prescriptions Can Get Pricey

Prescription medicines are generally the most costly out-of-pocket expense that seniors have to deal with. You may need medication that isn't covered by your insurance provider because of the type of medication it is, or the fact that there is no generic drug available. If that happens to you, then you could be paying hefty out-of-pocket costs for prescriptions that you need but aren't covered. Always ask your doctor and your health insurance provider before you change prescriptions. You may be able to avoid heightened costs or find a better plan that more adequately covers your costs.

Home Insurance Should Stay Affordable and Comprehensive

Depending upon where you live as a senior, you may find that your deductibles and rates for home insurance are becoming larger by the day. Some seniors have even been forced to consider going without home insurance because the costs were too high. As a senior, this is the last thing you want to happen to you. Staying on top of your home insurance, both knowing what your home insurance covers and how you can keep your rates affordable, is yet another thing that you must do as a senior.

Understanding the Dilemmas Insurance Poses to Senior Citizens

Insurance is a tricky thing to manage, and it becomes even harder to do so as you age. Staying on top of what your insurance covers and how much you have to pay to keep your insurance are two things that will only become increasingly important as you age. The one shining ray of hope concerning this is that many insurance companies offer discounts and plans designed specifically for senior citizens. You need only seek out these plans to ensure that your insurance continues to keep you safe as you age.

Properly Managing Your Personal Finances

Although the recession may be nearly over – according to some though not all financial experts – that doesn’t mean you can breathe a sigh of relief and go back to your old financial ways. There are some excellent benefits afforded to those who make the effort to properly manage their personal finances, and in fact, many experts are now of the opinion that personal finance should be a compulsory subject taught in high schools to educate young people how to effectively manage their finances in order to avoid – amongst other problematic outcomes – filing for bankruptcy. 

Why properly managing your finances is important

It’s important to learn how to manage your personal finances for a number of reasons, all of which concern your quality of life. Whilst it isn’t wrong to point out that there are more important things in life than money, it is, however, difficult to enjoy life and your relationships when you’re under the cosh financially.

Borrowing – When applying for finance, like a credit card or loan for example, your credit history will prove to be an important factor in how much you repay on what you borrow. For example if you have a poor credit history as a result of managing your personal finances poorly, you’re likely to repay much more than someone who has kept their personal finances in order.

Marriage and relationships – Your personal finances can also affect your marriage or relationship with your partner for better or for worse. Nothing breaks up relationships faster or more destructively than financial strife and indeed during times of financial strife, like the global economic crisis of late, the number of breakups and divorces is often found to increase.

Your future – It’s essentially your future that’s at stake where the management of your personal finances are concerned, and that of your family if you have dependents. This should serve as the impetus required to take a more active interest in properly managing your personal finances. Your retirement and your children’s future are at stake here, which should illustrate the importance of proper personal finance management.

Personal finance apps

In recent times there have been some notable personal finance apps released for both the Android and the iOS operating systems, many of which, like Expensify, Mint, Manilla and Slice, are free to download from the Google Play store and the Apple store.

Expensify – Widely considered to be among the best apps for business travellers, this app is aimed at businesspeople but anyone can use it.

Mint – Although Mint takes a little time to set up, the general consensus is that this app is one of the most useful.

Manilla – This personal finance app has been found indispensable by those looking to consolidate their personal finances and stay on top of bills.

Slice – An ideal personal finance app for those with a love of online shopping, Slice supports all the major service providers including Gmail and iCloud.

A few handy tips for better personal finance management when borrowing

There are a number of ways to manage your personal finances more effectively, including shopping around for a personal loan in order to apply for the most competitive loan offered. Where borrowing is concerned, it’s imperative that you shop around for the most competitive products, and if you’re applying for a mortgage the general consensus is that it’s best to put down as large a deposit as possible to reduce the total amount repaid.

Furthermore, don’t overlook the importance of creating a budget when making repayments so that you’re comfortably able to repay what you’ve borrowed without adversely affecting your quality of life.

About the Author:Morgan Finance in New Zealand is a business offering financial products for business or personal needs. To know how to get a personal loan, visit morganfinance.co.nz.

Learn How Little Ways Can Be Used As Techniques in Saving Money

Saving money does not always have to involve a bank account. You can stow away some dough through little ways you can do without necessarily making an all-out effort. 

Here are seven easy ways to help you save: 

1) Get a piggy bank. This may sound childish, but in fact, it is not. The piggy bank is actually a good device to use for saving. One good way is to have a number of coin banks at hand. Then you label each one for a certain item you want to have. In this way, not only will you get what you want but also keep away from any untimely purchases. 

2) Use cash cards. Yes, these are usually neglected over credit cards, but these work better. Not only do you purchase freely without interest, you also get something in return. This could be in the form of points for every purchase, or better yet discounts on your next purchase. Now who wouldn’t want that? 

3) Clip coupons. No, not the obsessive coupon clipping you see on reality shows. You can find these in some magazines and newspapers which typically indicate discounts on a certain item for a period of time. Cut only the ones you are sure to use.Since other cutouts will likely end up as clutter if not yet used. Be sure to take note of the dates on the coupons too. 

4) Save energy. I know we have all heard this a thousand times, but only a few realize why. By saving energy, we not only help Mother Earth but our pockets as well. For example, using a cup when brushing your teeth or ironing your clothes all at the same time. These are little ways on how you can conserve energy with almost no effort at all. 

5) Cook meals. Yes, cook your own meals. While eating out may save your energy, it will definitely cost you more money. Preparing your own meals might be unpractical, especially when you are continually pressed for time. However it may be the less expensive and healthier as well. Cooking doesn’t have to be tiresome either. Eat a salad or grill meat; these are inexpensive ways to fill your stomach but not empty your pocket too. 

6) Shop wisely. Do you know the expensive brands are placed at eye-level shelves in most groceries? Why not shift your sight lower and spot the same item at a lesser price, and maybe the same quality. Cheaper price doesn’t always mean cheaper quality either. 

7) Make a monthly budget. I know you’ve probably seen this tip a million times and it may even sound cliché but it really works. Rather than make a weekly budget, make a monthly plan. This tends to be more flexible to unexpected events, like sickness or emergencies, and more. 

Always remember that saving money is not difficult. Little ways when done daily and paired with discipline and prudence, will surely give you a more comfortable and happy life. 

Victoria Anderson is a finance writer for Guarantor Loans Direct. She loves covering business topics and finance related stuff. She is fond of web development and wed design. You can find Victoria Anderson on Google +.

Smart Financial Tips for Retirees

saving and spending (Photo credit: 401(K) 2013)

Just because you’ve reached an important milestone doesn’t mean savings and investing are behind you. You might be just as busy as you were when you were working full-time, and nowadays the transition into retirement isn’t as black and white as it used to be. If you’re worried about how to stretch your pension, social security, retirement accounts or savings, read on for financial tips just for retirees. 

If you haven’t quite reached the marker for withdrawing social security or a certain account, hold on. The penalties are almost never worth the instant “reward.” Whether you were a frugal spender your entire life or not, now is the time to really put wise spending into action. From travel to groceries, there are a number of ways to save money and put off those payouts until you can maximize them. 

Saving on Health and Well-Being

As a retiree, you likely qualify for a number of low-cost or even free classes and services. Start by Googling free health classes in your area. A costly gym membership for you and your spouse is an easy item to be nixed if you find things like free yoga or Pilates that can replace it. Get creative and you might find a new passion, such as aqua classes in adjustable pools at your local community center.

When it comes to grocery shopping, consider the actual cost of convenience. You probably already know which nearby stores have the lowest prices, especially when combined with coupons and shopping seasonally, but it might not be quite as convenient as the store that’s a little closer. Or maybe you’re just a creature of habit or prefer the atmosphere of a costlier store; consider if the cost is really worth it. 

Travel Tips

It’s no secret that traveling standby can save you hundreds (or even thousands) of dollars. The downside is that you have to have flexibility, which is something many people in the workforce don’t have. However, flexibility is now yours and you can save a bundle on travel. Combine standby with traveling during the off season to maximize your cost-saving trip.

Price comparison is important no matter what you’re shopping for, including travel. If you really want to save, choose destinations based on proximity to you. If you live in New York, a trip to Puerto Rico will be much more affordable, not to mention an easier and with a shorter flight time, than a trip to Hawaii. Tropical locations also have off-seasons where hotels and activities are often half off, so plan accordingly. 

Are Your Accounts Working for You?

If you’re paying for a checking account, stop. There are plenty of checking accounts available with no catches for completely free accounts, including options at local credit unions. If you feel locked into a savings account that requires a high minimum for a low APR, it’s time to move on. What happens if you need that money? You’ll be penalized with monthly fees when the balance drops below a set amount.

Right now, there are very few options from CDs to savings accounts that offer anything beyond a paltry return rate. Don’t opt to lock your money away if there’s not a decent return on your investment. Instead, look for avenues to save your money with no strings attached. As a retiree, accessibility and no penalties should be at the forefront of any new accounts.