The Cost of Cars: Is it All Getting Too Much?

We all like to have the little luxuries in life, but getting them is something that is becoming increasingly harder to do as the cost of living rises. There is little room for manoeuvre in financial terms as money is restricted not allowing for the things we love to indulge in. 

Cars are a luxury and in most cases a necessity, but the expense that surrounds them often makes them difficult to afford and to maintain. It is not simply the cost of the car itself that makes expenses begin to build - the running costs and maintenance and fuel prices combined make it something that is now a luxury for most and simply unaffordable for others. 

There are ways to attempt to bring the costs down; diesel cars, a budget direct quote for insurance, smaller engines, and older cars are all factors that play a part in reducing the costs.
Brand new cars have dramatically increased in price over the years; they have risen with the cost of living and in an attempt to be profitable in the time of economic crisis. Parts are more expensive as is labour, which significantly raises the cost of the car and any work that may need to be done to it. There are a higher number of accidents as the world has entered into a ‘suing culture’. 

There are drivers on the road that are looking for the opportunity to make an insurance claim for even the most minor of incidents - they are claiming mainly for personal injuries as a result of an accident which sees them being compensated with thousands of pounds for something that may or may not exist. This has had a direct impact on the cost of insurance premiums, which means drivers are finding it more expensive to insure their cars and even keep them on the road.
It is not just the suing culture that has added to the increased cost of an insurance policy, but the fact that insurance is now equal. There are no longer lower rates for women or older drivers. For cheaper rates, people have to earn a high no claims bonus and be considered a low risk driver, it takes time and can be relatively hard to do, as there are many accidents, which occur that, simply are not the fault of the driver. At the same time, there are more driving offences that have been introduced and will see premium costs rise.
The cost of repairs has increased at the same time as the cost of a vehicle. Parts are expensive, time and labour are costly and its just another area that adds to the expense of car ownership. Insurers are more than aware of this and the higher premiums are a reflection of the cost required to get a car back on the road after an incident. 
Finance tends to be the only option for those that are looking to own a car but cannot pay for it outright. The monthly instalments are spread over a number of years and make a car affordable, provided the financial arrangement contains no hidden terms. 

Often the interest that is added on top of the price of the car means you are paying back far more than initially borrowed, it could even run into the thousands. Car finance is a big commitment and something, which has to be paid every month regardless of the financial situation you are in, the car, will be reclaimed by the finance company if payments are not fulfilled.
It is incredibly difficult to be able to afford the things you want and the things that you need. There are means and measures that can reduce the costs of car ownership, but overall it is an expensive luxury but something that is more than worth it. It provides you with freedom and independence and makes everyday tasks significantly easier.

Does Your Budget Need a Makeover?

It’s not uncommon to reset your budget when you reach a major milestone, such as getting married, retiring or buying a house. When you do that, however, you manage your finances in fits and starts, and you miss numerous chances to save and spend more wisely.

When life goes along smoothly with no major interruptions, you might not think about money. But all the while, costs go up, fees are incurred, and new cost-saving opportunities come along. If you haven’t set a budget in a while, ask yourself these questions to see if it’s time to reorganize your financial priorities.

Has my Month-End Balance Changed?

When you wrote your budget 10 years ago, you may have assumed you’d end each month with a set amount of money left over. Take a look at your bank statements from the past year and see if that amount has gone up or down since your last budget.

Suppose you used to have $500 at the end of each month. If you’re now keeping less, go through your expenses and look for things to reduce or eliminate. If you’re keeping more, have some fun with it; better yet, put that extra money into your retirement account.

Am I Still Getting my Money’s Worth?

If you’re spending more time fixing your 1996 Mustang than you are driving it, you’re not getting much return on your investment anymore. Similarly, your gym membership might seem silly since you bought a treadmill last year. Let your budget reflect these changing priorities.

Just as revenues and expenses change, so does the need for certain things. What seemed essential in your 20s and 30s might not matter in your 40s and 50s. Analyze your spending habits over the last few years and decide whether certain expenses are still important in your life.

Am I Properly Preparing for the Future?

Some situations come out of nowhere, like an illness or a termination. Other things are inevitable, like retirement or the passing of a loved one. These situations don’t have to be imminent for you to start preparing for them, but as the day approaches, give them more attention.

As you get older, you may want to cut back your work hours, thus cutting your pay. Or you may start facing various health problems, resulting in higher expenses. Factor those possibilities into your current budget; the more you prepare, the easier these things will be to manage.

Do I have a backup plan?

Even after you’ve considered every contingency, something unexpected could happen to put your finances at risk. Instead of being blindsided by these sudden changes, protect yourself by having an alternate budget in place.

This Plan B should reflect what would change if things went awry. For instance, what would you do if you or your spouse became ill and needed long-term care? Some people might cut expenses to pay for home care, while others might rent out or sell a second home.

Nothing stays the same, and it’s important to make sure your finances follow suit. Give your budget a regular review to keep your finances on a smooth track.

4 Reasons Binary Options Trading Is Great for Newbies

binary options (Photo credit: opportplanet)

Those who are less accustomed to the rules of the trading world might find talks about binary options as foreign as an unknown language. However, as most expert brokers will be quick to explain, understanding binary options is not at all that difficult. In fact, they are considered perfect for newbie traders: though they do come with significant risk, they are also a major source of profit – and, the best thing about them – they are no-strings attached. If you’re thinking of giving binary options trading a go, here are the four basics that you need to know about.

1. A bit of history about binary options

Since we live in a pre-eminently digital era nowadays, many people tend to assume that binary options have always been digitally traded. This, however, is not true – for a long time, they were available over the counter, and could be purchased directly from the institution that issued them. Back then, though they were considered financial instruments, they were part of the exotic options category. They could not be traded on a liquid market and, more often than not, they were offered as part of more complex options contracts.

Since 2008, binary options have been traded on specialized websites and this has also given rise to the emergence of numerous websites explaining how to do binary trading online. It’s worth bearing in mind that online traded binary options are non-exchange-traded (more on that in the following section, which explains the difference between the various types of binary options). Current estimates (as of August this year) say there are over 200 websites up and running online at the moment and they are trading roughly 125 different kinds of underlying assets. Non exchange-traded binary options became regulated as financial instruments in Cyprus, as of May 2012, and in Malta, as of March 2013. In the United States, trading is legal, but not regulated.

2. Types of binary options

There are several criteria according to which binary options can be classified, but perhaps the most important distinction is the one made according to the way in which these options are traded. The categories, in this respect, are two: exchange traded and non-exchange-traded binary options. If getting into the technical details sounds daunting, then let’s put it this way: if you’re trading binary options online, you are taking part in a non-exchange trade. This class of binary options has a pre-determined expiration date, which needs to be attained in order for the owner of the options to buy, sell, or trade them in any way. They also come with a pre-established rate for profit (or loss), which is one and the same, irrespective of the difference between the options’ stake price and the value of the underlying assets.

Exchange traded binary options have been available in the United States since May 2008, when they were first introduced by the American Stock Exchange, also referred to as Amex. The Chicago Board Options Exchange followed suit the next month. These European binary options, which operate according to the cash-or-nothing principle, have been standardized. As such, the owners of the options can trade them with continuous quotations, i.e. a way of knowing what the price of the options and the assets has been historically, up to a certain point. 

3. Binary options trading basics

In order to best understand how the process of trading binary options goes, let’s focus on an actual example. Trading starts with a market watch for one or several assets in which one would be potentially interested to trade. 

For the purpose of this example, let’s say it is one of the indexes offered by the Chicago Board Options Exchange, the S&P 500. When the trader decides to invest, the index is sitting at 1175, and the trader believes that, according to their observations, it is going to rise. Binary options are then purchased through a broker, which will offer a strike price on that binary option and a time frame for it. 

In this example, let’s say that expiration comes at the end of the trading day – although binary options can come with just about any expiration frame, be it half a minute, several hours, or several days. Since the trader believes the price is going to increase, they buy a call option; the opposite, when one believes the price is going to fall, is to buy a put option. 

In this case, the payout is 80 per cent for the option ending the trading day ‘in the money’ (above the current index), and the loss is 95 per cent for an ‘out of the money’ situation (if the price should fall). The trader invests $100 and, at the end of the day, finds that the index has gone up. They have just earned $80 – but it is true that, had their predictions gone awry, they would have lost $95.

Before deciding to purchase binary options from any particular broker, it is wise to inquire carefully about their conditions. Sometimes the price taken into account is the last quote on a particular index, but in other cases it is calculated according to the (bid+ask)/2 formula. Also, it may happen that the price has stagnated on expiry. In this case, most brokers will choose to return the buyer’s investment in full. One rule that is largely applied across brokers is to forbid traders from selling their options or choosing to leave the trade before the expiration time is up.

4. Risk management for binary options

Of course, any one trader may choose to manage their risks in any way they see fit. However, binary options are largely regarded as a safe financial instrument, particularly because, unlike vanilla options, the trader knows exactly how much they stand to lose or gain from each trade. It’s also important to understand that, when trading binary options, the margin by which the price varies on a particular asset is irrelevant. All the trader needs to do is estimate whether it will rise or fall. Lastly, most brokers will charge no fees or commissions to binary options traders – this is a very attractive specific condition for beginner traders, who will want to give trading a go, but without having to pay for their one-off chance.

Understanding the Basics of Vehicle Financing

Purchasing a new vehicle can be a very daunting task. The average vehicle today costs anywhere from $15,000 for a used model and almost $30,000 and up for a new vehicle. Because of this increased cost, most consumers have to have some type of financing. The financing will help with the vehicle purchase by setting up payments per month. It is important for consumers to understand the financing process before shopping for a vehicle. Understanding the lingo and how financing works allows for consumers to get the best deal. Below is a simple guide to understanding vehicle financing. 

Financing

When it comes to purchasing a vehicle, consumers have two options: Direct Lending and Dealership Financing. With direct lending, the consumer is using a bank, credit union or finance company to obtain a loan. The financial establishment will need personal information to see if you qualify. If you do, you will then agree to a set amount for purchase, then an agreed finance charge which is paid over time. once a contract is in place for a new vehicle, the contract is signed and the amount is paid to the dealer. You are then responsible for a monthly payment on your new vehicle.

With dealership financing, you have the option of financing the vehicle directly from the dealer. You agree to the price of the vehicle and a finance amount, plus a charge which is set over time. In most cases, the dealership will retain a contract but sell the contract to a bank, credit union or finance company as an assignee. This group will then accept the payments on your loan. Most consumers find that dealership financing is best because it is convenient, there are more financing options and special programs can be found for saving additional funds during the purchase.

Your Credit

Before purchasing a new vehicle, it is also a good idea to check your credit report. you want to be sure that you have an up-to-date account of your credit. to obtain the best loan, you will need a score of 725 or higher. Always check your credit and work on any issues so that you do not have any problems when purchasing a new vehicle.

Consider a Co-Signer

When financing a new vehicle, you may be in need of a co-signer. A co-signer is someone who signs a loan agreement with you to assume an equal responsibility for the amount owed. You want to choose someone who has a good credit history and one that is willing to help you if you are in need. This is a major obligation and one that the purchaser of the vehicle must take very seriously.

Affordability

Consumers should always be aware of their finances. Take the time to go through your financial records and bills for each month to be able to determine the payment amount you can afford. You never want to spend more than you have or you may end up losing money and your new vehicle. Do a little budgeting and determine a set amount you have for a vehicle payment and stick to this amount. This will allow you to remain comfortable in your lifestyle despite a new vehicle purchase.

Overall it is important to learn the basics. Take the time to learn financial terms and even go so far as to speak with a loan officer to find out what you can afford as well as learn about the process. You will feel more comfortable with a new vehicle purchase by learning more about the process.

About the Author

Ashley Parker has vast experience with purchasing vehicles and likes to spread her knowledge about the financial aspects of a purchase. A great bonus tip is to search for a website of a car dealership so that you can take advantage of special deals and promotions.

Want To Grow In Your Career? 5 Ideas That Will Get You Noticed

Even if you believe you're completely secure at your current job level, know that job promotions and salary increases don't grown on trees. If you want to grow in your career, here are five ideas that will get you noticed and on the road to a higher job title and the higher income that goes with it.

Go Beyond your Current Job Performance

Make sure you know exactly what your particular career description entails in all of its duties and functions. Compare it to what you have been accomplishing on a daily, weekly and quarterly basis. If sales figures or quotas are involved in your job, take that into account as well. Now make an effort to perform those tasks at 110% of your abilities at all times. Management and higher ups will be sure to notice your dedication.

Knowledge is King

Impressing upper management with your increased knowledge and education in your field, can make you a highly sought after team member. Advanced college degrees and certificates in most fields can now be granted by taking courses over the internet. An excellent form of web learning is the system at atrixware.com. Here you will find software tools for excellent e-learning design, delivery and development strategies. Online courses can be customized to meet your needs for best results and understanding.

Take on Additional Duties and Responsibilities

Be proactive in your approach to job requirements and leadership roles. Ask for an additional assignment or chair a committee or meeting without being asked. Volunteer to organize a holiday party, social event or community project.

Learn to Delegate Judiciously

While maintaining a heavier workload for yourself, be sure to learn the fine art of delegating items to fellow employees when necessary. Make sure you are fully bound to the project material so that other workers asked to help carry the burden do not feel exploited or taken advantage of.

Cordiality is the Key

A congenial and cordial tone is crucial to being liked and respected by fellow employees within your office or corporate environment. Show deference to those in management above your ranking, while showing respect to employees below your title or company stature.

An increasingly competitive job market could mean that a fork in the road or a wrong turn on the corporate highway can lead the most experienced employee astray. Especially at a time of corporate downsizing, each individual must make an effort to stand out amongst his or her company comrades.

Brionna Kennedy is native to the Pacific Northwest, growing up in Washington, then moving down to Oregon for college. She enjoys writing on fashion and business, but any subject will do, she loves to learn about new topics. When she isn't writing, she lives for the outdoors. Oregon has been the perfect setting to indulge her love of kayaking, rock climbing, and hiking.

What Will the Health Exchanges Mean for Seniors?

English: President Barack Obama's signature on the health insurance reform bill at the White House, March 23, 2010. The President signed the bill with 22 different pens. (Photo credit: Wikipedia)

The Affordable Care Act will go into effect on January 1, 2014. Most people are trying to prepare for the new law to go into effect. Unfortunately, there are many misconceptions about the law that may prevent people from making informed decisions. The effect that the health exchanges will have on seniors is especially confusing. You will need to know what the health exchanges are and how they will impact you. Here are some things you should know.

Health Exchanges Won’t Replace Medicare

The federal government recently hired Kelton, an independent consulting firm, to find out what seniors believe about Medicare. Their new survey found that 86% of seniors believe that the new health exchanges will replace Medicare. A number of other seniors believe that the eligibility age for Medicare will increase when the law goes into effect.

Many seniors are foregoing healthcare, choosing not to fill prescriptions or looking for a part-time job because they think that they won’t receive the assistance they need. They may even forego getting assisted living such as by visiting a senior neighborhood living in Reading, PA.

Health officials want to make sure that they understand the new law so that they can make better decisions. Here are some of the misconceptions they want to clarify:

• Eligible seniors will still receive Medicare after the ACA goes into effect.
• The ACA will not raise the eligibility age for Medicare.
• They shouldn’t expect to pay more for prescription drugs.
• They can begin enrolling in Medicare in October.

Eligible seniors should still apply for Medicare. However, they may find that Medicare won’t cover all the services they need. You will want to know how to buy private insurance on the exchanges as well.

Tips for Buying Insurance on the Exchanges

Many seniors will want to consider buying insurance on the health exchanges. They may not be old enough to qualify for Medicare yet or would rather have a more comprehensive policy. Here are some guidelines to help you choose.

Understanding Your Rights

The Affordable Care Act carries a number of changes for seniors looking to buy health care. Insurers will no longer be allowed to disqualify them from receiving coverage based on their age or preexisting conditions. However, they will be allowed to charge seniors up to three times as much for coverage.

Tips for Reducing Premiums

The health care law prohibits insurers from setting higher premiums based on preexisting conditions. However, it does allow them to charge higher premiums to people who smoke. You may want to consider kicking the habit if you want to reduce your premiums.

You may also be able to receive lower premiums if you participate in an employer sponsored health plan. You should consider doing so if you are still working.

Look Into Subsidies

You will want to see if you are eligible for any of the subsidies. Anyone who is making less than 400% of the poverty line will be eligible for subsidies. You will want to apply for these subsidies if you are below this income threshold.

Understand the Health Plan Classifications

You will need to decide whether you want to pay lower premiums every month or lower deductibles. This will depend on what services you believe you will need in the future.

You can already offset your insurance premiums by paying higher deductibles and copays. The health exchanges will make it easier for you to choose a plan that meets your needs. You can choose between bronze, silver, gold and platinum policies. The bronze policies offer the lowest premiums but the highest deductibles. Premiums will be higher while deductibles will be lower with the other plans.

About the Author: Kalen is a financial advice writer with an MBA. He shares tips to help people of all ages plan for the future.