Frugal Family: How to Save Cash on Essential Home Repairs

Keeping your home in proper working order can be expensive. You cannot live without a properly functioning refrigerator, furnace or electrical wiring, and these things require professional repairs. 

If you feel like your home is a money pit, these four tips can help you to save on essential home repairs.

Allow for Flexible Scheduling

Many companies charge a fee if you have them come to your home and make repairs on the weekend or during the evening hours. If you can, accept an appointment that does not involve any off-hours fees. 

Ask the company if they will waive your service call or discount it if you have them make a costly repair or replace the broken equipment.

Look for Discounts

Visit the company's website and social media pages. Many companies offer a new customer discount on repair services. 

Look on other community deal websites to see if there are any special offers on the services you need. If you are a senior, member of the military or student, ask if the company offers a discount. 

Installing a Water Heater

Water heaters last for about eight to ten years before they need to be replaced. Installing a water heater could help to cut down on your utility bills. 

Professionals, like those at HELP Plumbing, Heating, Cooling and Electric, know that you should consider choosing a water heater that has the Energy Star rating. These appliances use about 30 percent less electricity or natural gas compared to their same-capacity counterparts without the rating. 

According to the U.S. Department of Energy, heating water accounts for about 17 percent of your home's energy usage, you could save a lot of money this way.

Join a Maintenance Club

Consider joining your heating, plumbing or electrical service's maintenance club. Preventive maintenance on your home's essential systems can prevent the need for many repairs. 

For example, replacing the air filter of your furnace, air conditioner or heat pump every 90 days helps to prevent the motor and fans from becoming dirty and losing their lubrication. 

Maintaining your home's heating, ventilation, air conditioning and other appliances also helps them to use less electricity or natural gas and to last longer. Some companies also offer a discount on repairs if you are part of the maintenance club.

Always be sure to hire a licensed and insured professional to do repairs on your home. A professional who does the job right the first time will cost less in money and time. These four tips will help to ensure that your home's systems are operating properly.

Types of Mutual Funds: Everything You Needed To Know

Mutual Funds are one of the most preferred investment instruments for Indian investors; what’s more, this is one sector that is continuously evolving with time.

A lot of people prefer keeping their money safe and relatively untouched, in their saving accounts. Others understand that investing in Mutual Funds, while it has risks, also pays off handsomely. This is primarily why more and more people flock to this mode of investment.

Here’s everything you’ll need to know about Mutual Funds, and investing in them.

What is a Mutual Fund?

A Mutual Fund is, in a nutshell, a bucket of money from different investors like you. This bucket consists of various investment instruments like stocks, and bonds. Investing in a mutual fund is much easier and safer than investing in individual bonds and shares.

Plus, you can sell your shares whenever you want.

Mutual Funds are managed by qualified and experienced finance professionals who use this money to create a portfolio. You (as an investor) don’t own individual securities, but shares of the fund. You can invest small amounts of money—any amount you choose, really—and benefit from the profits in this collective portfolio. 

Each and every shareholder has an equal share of the fund’s gain and loss, and experiences them proportionate to the amount they invested.

Types of Mutual Funds

There are different types of Mutual Funds in India, and it’s really important to choose the right one based on your investment goals. Broadly speaking, there are two types of Mutual Funds, and various types of MF schemes under both of them. Let’s take a closer look at them.

Open-Ended

Open-ended Mutual Funds are available for subscription for the entire year. You can sell or buy whenever you want; there is no fixed maturity date.

Equity Funds/Growth Funds

Here, you invest in stocks of different sizes or in equity shares. Equity funds are one of the most popular choices among investors today. They have the risk of high losses in the short term, with the advantage of modest capital appreciation in the long run.

Debt Funds/Income Funds

A major portion of the investor fund is channelised towards government securities, debentures, and other debt instruments. Capital appreciation is low, but there is very low risk involved. Given this fact, this is an ideal investment vehicle for investors looking for a steady income.

Money Market

This is ideal for you, if you are looking for short term gains and better options at the same time. The money is invested in short-term debt instruments, and reasonable returns are guaranteed.

Index Scheme

An Index Fund is more common outside of India, in the Western world. It makes use of a passive investment strategy, and replicates the pattern of benchmark indices NIFTY and SENSEX. This means the capital appreciation (and depreciation) of such a fund coincides with the rise (and fall) of the indices.

Sectoral Scheme

Sectoral funds are invested in specific sectors like IT, infrastructure, and pharmaceuticals, or in capital market segments like mid cap and large cap segments. The return is high in this scheme, and so is the risk.

Tax Saving Scheme

Offering tax benefits to investors, your money here is invested in equities; long-term growth opportunities are quite common here. Tax saving schemes usually have a lock-in period of 3 years.

Balanced Funds

With balanced funds, you can enjoy income and growth both at the same time. The fund is invested in fixed income securities and equities both, the proportion of which varies and is written on investment document.

Close-Ended

Such MFs come with a predetermined maturity period and you can invest only during the initial launch period or New Fund Offer (NFO) period.

Fixed Maturity Plans (FMPs)

As you’ve probably already realised given their name, FMPs come with a fixed maturity period. They comprise mainly of debt instruments that mature at the same time as this scheme, and earns through the securities’ interest component.

Capital Protection

The primary aim of this scheme is to safeguard your principal amount and earn reasonable returns. 

Why invest in Mutual Funds?

There are many reasons why you should invest in Mutual Funds. Some of them are:

Diversification

Every investor worth their salt knows not to make the mistake of putting all their eggs in one basket. The same rule applies in the investment market as well. It’s a known fact that diversification is the key to making profits, and investing in mutual funds ensure just that.

It’s important that you invest in different types of securities. In most cases, debt markets don’t yield great results when the equity markets do, and vice versa. If you’re intent on creating a portfolio of your own, it’ll take quite a bit of time. With mutual funds, you can easily diversify your assets at a low cost, as these are available for as low as Rs.500 a month.

Professional Expertise

Investment isn’t everyone’s cup of tea. It requires skills and continuous evaluation of market dynamics. Anybody can park their extra money in the investment market. However, in order to get returns, you need to learn the skills of managing money professionally.

Mutual Funds have qualified investors who understand the market well and take the right decisions as far as investment is concerned.

Liquidity

Mutual Funds usually don’t come in with a lock-in period, and the money you invest is available to you all the time. Ideally, it takes a couple of days for the fund to return your money; it is usually sent to your bank account.

Transparency

Each and every Mutual Fund’s performance is reviewed by rating and publication agencies and you also get regular updates as being a member of the fund. 

How to Invest in Mutual Funds?

In order to invest in Mutual Funds, you need a bank account and a PAN card. All you need to do is fill an application form, furnish your PAN detail (typically if you’re investing more Rs.50,000), sign your cheque and submit the same to financial institutions. You can even invest online.

Now that you know the different types of Mutual Funds and their meanings and how to invest in them, take a call and start investing. Good luck!

How To Save Money And Make An Old Car Work For You

If you're living a thrifty lifestyle now with an eye to building up a comfortable cash cushion or saving for an anticipated expense, and your ego doesn't have to live in the driveway waiting for another wash & wax session, an older car can help you reach that goal.

The Financial Advantages of Older Cars

There are many different ways that older cars cost much less than newer models do. Here are just a few of those different reasons as to why having an older car can play to your advantage:

• The insurance payments are much lower, since you're insuring a smaller investment, even with the same coverage.
• Interest on a $3,000 auto loan is quite a bit less than the interest on a $30,000 auto loan.
• Older cars are simpler and easier to work on yourself.
• Liability insurance is a tempting option because you've got less to lose if you do total the car.
• People driving a Ferrari are projecting an image, and that's expensive to live up to. People driving a '97 Toyota don't feel the same pressure to spend.

If you picked your care carefully, it's entirely possible to keep it running until you retire, and maintenance on it, even when you replace an engine, will cost you much less than loan or lease payments will. 

Careful model selection is much easier with older cars. They have a history that can be checked online. It's a good sign if they have an avid fan club 20 years later.

The Downsides of Older Cars

The worst thing to ever happen to an old-car enthusiast was the Cash For Clunkers program in the late 2000s. A huge majority of the older cars that were running fine disappeared off of the market forever. 

Finding replacement parts can be tricky. You'll have to shop around for some of the rarer parts. If you can't find a part that you need anywhere, try the junkyards. 

Call around to check availability. Some junkyards will insist on pulling the part themselves, but others have a 'U Pull & Pay' policy that will save you even more money.

If you're lucky enough to find a model older than 2000, you can learn to do much of the repair and maintenance yourself, saving even more money. 

Shop manuals for the older models can be found in thrift stores, libraries, and sometimes even online. It doesn't have to be pretty to get you into a Classic Cars Club, and the other members will have valuable advice for you.

An Overview of Dental and Vision Insurance Plans

As the risk of dental and vision conditions increases with age, ensuring that you maintain good health with routine checkups and examinations becomes even more important in your 50s. 

As such, it may be worth supplementing your current health insurance plan with dental and vision insurance so that you are protected in the event that you require undergoing a costly dental or vision procedure.

This guide by global insurance broker Pacific Prime Singapore provides a useful overview on what to look out for when it comes to purchasing dental and vision insurance. 

Why it’s important to consider dental and vision insurance

We all understand that ageing comes with an increased risk of a range of dental and eye health problems. For example, older adults have a higher tendency to develop periodontal disease, and there’s also the added risk of cavities as the root of your tooth becomes softer and more vulnerable with age. 

In your 40s and 50s, symptoms associated with presbyopia, a vision condition that causes difficulty in seeing up close, will become more and more noticeable.

It is widely known that the US has the highest cost of healthcare, and dental and vision related costs are no exception. 

This is especially true if you choose to seek treatment in private facilities, where the cost of Invisalign braces can set you back by US $6000 or more! An eye exam alone can cost over $300, and LASIK surgery can cost up to $4000 per eye.

These high costs, coupled with the increased risk of age-related dental and vision conditions, are two of the major reasons why many choose to consider dental and vision insurance. 

Types of dental and vision insurance

In most cases, dental and vision insurance are available as an add-on benefit which comes with its own additional premium on top of your health insurance plan. That being said, some insurers do offer plans that comprise of mostly dental or vision benefits.

If you travel or move countries often, you may also want to consider an international health insurance plan with globally portable dental and vision benefits. 

Dental insurance options

Typically speaking, there are two main types of dental insurance: routine dental treatment and major dental treatment.

The routine dental treatment option covers more common forms of dental costs such as consultations, X-rays, fillings, emergency treatment, and root canal treatment. 

Because this type of insurance covers less expensive procedures, it usually charges a lower premium than the major dental treatment option.

The major dental treatment option covers major dental treatments, including but not limited to periodontitis treatment, gingivitis treatment, bridgework, root scaling, temporary crowns, porcelain crowns and gold jackets. 

Adults over 50 are advised to secure this type of dental insurance as they are at a higher risk of requiring major dental treatment.

Please note that dental insurance does not typically cover cosmetic treatments (e.g. whitening) but some plans do offer discounts on such procedures. 

Vision insurance options

There are two main vision insurance options, namely the vision benefits package and the discount vision plan.

The vision benefits package will usually offer coverage for eye exams, frames (including multifocal glasses and reading glasses), as well as contact lenses. 

This type of plan will usually come with a co-payment, which is the pre-specified amount (as detailed in your insurance plan) that you will need to pay for every vision-related treatment or service.

The vision discount plan also offers coverage for eye examination, frames and contact lenses, and usually charges a lower premium than the vision benefits package option. 

This type of plan works a little differently because instead of paying out on claims, this option provides a percentage discount instead on every ophthalmic service covered by the plan.

Please note that not all vision insurance plans will cover LASIK surgery and PRK vision correction, so it’s highly advised to read the fine print or consult a broker before purchasing a plan.

These plans will usually have a waiting period

It’s important to be aware that add-on benefits such as dental and vision insurance will usually have a waiting period, which is the duration of time (anywhere from 1 to 24 months) you will need to wait after securing a plan before you are eligible for submitting claims on that benefit. 

During this time, you will likely have little to no coverage benefits. The reason why insurers impose a waiting period on plans is so that it prevents people from purchasing a policy right before they need to undergo an expensive procedure.

Navigating through the numerous insurance options available to find one that suits you best can be difficult to do all on your own, so it often pays to talk to a reputable insurance broker like Pacific Prime Singapore to find the best value plan for your needs.

Author bio

If you are looking for the most reputable and trusted insurance plans on the market, Pacific Prime Singapore - a global health insurance advisor will definitely be able to help you. Their team of experienced insurance advisors offer a wealth of experience that you can rely on.