How to Choose a New Bank for Better Personal Finance

There are so many different banks, and types of banks available these days that it is very difficult to choose a new one. Their ads are numerous and made to be appealing, so what are we to do when narrowing down where we want to do our business? Some of the subjects to check on to see where you would stand to include the following.

Fees

Most commercial banks have fees involved, so watch out for them. Find out if you need a minimum amount to even open a checking or savings account. While these can be hefty, some banks offer enough rewards to offset the cost if you use the account enough. However, if you’re looking for no fees, credit unions are typically the way to go.

Also, consider, will you have to maintain a minimum balance or only write a maximum number of checks or make a minimum number of withdrawals each month to avoid fees? That can make a big difference over time if you have to lose money dealing with that bank. 



Are there any monthly service charges, or is everything free including unlimited checks, which may only be a possible “perk” for those over a certain age? These and any other potential fees should be considered before making an account with any bank.

ATM rates

Will you be subject to a fee every time you use an ATM that is not located right at your bank? This is important if you do it regularly. Either find a machine at a store that lists your ATM at no charge or make sure to go by your bank instead. That being said, you’ll want to make sure there are plenty of ATM’s for your chosen bank available in your area if you want to save money.

Interest rates

The rates on credit cards sometimes are astronomical, so look at that closely to see what your bank charges. Continue to look until you find the unusual bank or credit union that has a much smaller interest rate. If you need an auto loan or any type of loan, also check out all the particulars so you can see what you are really being charged.

Rewards options

Rewards can be quite different from one institution to another. Browse what that bank offers to make sure it has the choice that you prefer, whether it is gift cards or redemptions only at particular stores, or the ability to apply the amount of the reward to the balance on your credit card.

It is well worth the time to know exactly what costs and fees you will be faced with. First, take the necessary time to think long and hard as to what your individual needs are and then start comparing a few of the banks to offer the perfect one that offers exactly what features you are looking for.

4 Financial Benefits of Finishing Your Basement

When your home has an unfinished basement, you should know that there are financial benefits from renovating the basement so that it is more usable. Here is how experts believe that a finished basement can improve your financial situation.

Renting a Basement Apartment to a Tenant

If you create an entire apartment in your home’s basement, then you can rent the space to a tenant, helping to improve your financial situation each month. You must remember to create a usable space according to the local building codes for apartment rentals. 

In addition to having a bathroom and a kitchen, you may need to add a separate entranceway to the basement apartment along with making sure that there are fire exits available. You should determine how much you can charge for the apartment by checking the listings for similar rentals in your area.

Short-term Rental Income

Today, it is possible to offer short-term rentals to tourists. This is an excellent way to earn additional income if you live in a region where tourists are looking for places to stay. 



If you live in a city where it is difficult to find hotel rooms during major events, such as regional festivals, then you can offer the short-term rental basement to tourists only a few times a year. Again, you must determine what the local regulations are concerning short-term rentals to travelers.

Paying for Your Home Faster

If you finish your home’s basement, including basement waterproofing, then you can use the income from renting out the space to pay off your mortgage faster. Paying for your mortgage faster will improve your home equity, and this means that you will have a higher credit rating, making it easier to apply for other types of loans. 

You might not think that this is important, but when you want to apply for a vehicle loan or a student loan, having higher equity in a home can reduce your interest rates.

Improving the Resale Value of a Home

When your boss wants to transfer you to a job in another state, having a home with a finished basement makes it easier to sell the property. In addition, you can get more money from the sale of the house because it has an extra livable space. When you hire a real estate agent, make sure that the individual understands that the basement has bedrooms along with a bathroom and a kitchen.

Last, if your family is expanding, then renovating a basement to create space for teenagers or other relatives is less expensive than moving to an entirely new home.

4 Smart Investments for Your Large End-of-Year Bonus

There’s a lot of buzz about a recession on the horizon. This causes a lot of people to fear for their future. However, if you financially plan for the future, you won’t have to worry about a breakdown in your household. 

One of the best ways to financially plan for the future involves making wise investments. Consider some of the smartest ways you can use your large end-of-year bonus to invest in your family’s financial future.

Pay off debt

So many people spend a huge portion of their paycheck to pay off debt. Whether it’s credit card debt or a car note, find ways to quickly pay off the debt you have. If you have a large bonus from your job, consider using it to pay off the debt. Then, for the rest of the year, you can enjoy more money that stays in your bank account.

Start a business

There are more entrepreneurs than ever before. This is because more people are understanding how the tax laws are in favor of the landowner and the business owner. Consider starting a business that meets a need within the marketplace. Too often, people make the mistake of starting a business that surrounds a passion. 

If your passion and your paycheck come together for a lucrative endeavor, that’s great. However, focus on serving the community to meet an obvious need. This will help you remain profitable and relevant for years to come.

Purchase an investment property

An investment property is an excellent purchase. Use your bonus to make a real estate down payment. Once you purchase the property and get tenants in the building, your tenants will pay the mortgage and more. 

Let them pay off the mortgage while you cash the check each month. You can pass down investment properties to your children. Once the mortgage is paid off, you and your family can enjoy 100% of the rental income. It’s a great form of passive income.

Invest in the stock market

Though there are tons of people who are afraid of investing in the stock market, don’t be one of them. When it pertains to the stock market, the key is knowledge. If you take courses and learn the patterns of the market, this effort can be a smart place to invest your money.

While money is a commodity that you’ll want to use wisely, the same can be said for time. In fact, you can always make more money. However, you can’t get back the time that’s been spent. Use time as a commodity that’s on your side by using it wisely. 

For many investments, the earlier you start, the better off you’ll be. Once you’re educated regarding how to make smart investments, begin to invest.

How Options Trading Can Supplement Your Retirement Savings Plan

Image via Flickr by Got Credit

What is Options Trading?

Options are contracts to purchase shares. Typically one options contract is good for 100 shares. When you purchase an option, you are buying the right to buy or sell shares of stock at a set price. When planned well, this can bring a high return on investment.

You have two types of options contracts, a call, and a put option. Call options are buying you the right to purchase shares at a set price. So if you are watching a stock and feel the value is bound to go up, you would purchase a call option, when that stock increases in value, you have the right to buy 100 shares of that stock, and sell it off at the market value.

Your second option contract is a put option. This is a contract granting you the right to sell for a set strike price. So if a stock decreases in value, you will still get the set strike price for your shares.

Why Are Options A Good Choice for My Retirement Plan?

Options are an excellent way to diversify your portfolio. By adding options to your retirement plan, you have another source of investments to pull from, and a bit of extra security when another investment is stuck in a low streak. When you're investing, its good practice to keep your money spread out. You never want to put all your money all in one basket. Choosing options and learning a strategy can add a sizeable amount of income to your savings and monthly budget when planned well.



The good thing about trading options is that they tend to be a predictable risk. Options are a safe alternative to diving into buying a stock outright. If you are unsure but have a good feeling, you can invest in options, and if your prediction goes the wrong way, you only lose out on what you paid for the options contract. This will be considerably less money than if you were to purchase 100 shares and take a hit.

How to Trade Options

The first part of options trading is identifying the top stocks for options trading. When you do this, you will get a better plan of how to go about your investments. With any type of financial trading, it is essential to do your research. Talk to your broker about adding options to your portfolio.

So if you are looking for more ways to supplement your retirement plan, options trading can be the extra income you are looking for.