Emergency Fund and Why It Is Necessary

Keep saving, for who knows when the thick, sturdy and long trunk may be filled. Sometimes, the bright shining sun on a beautiful spring day may hide behind the scary black clouds to pour out thunder. 

Life is never as we see it, even Steve Jobs had to face a stressful public failure, although he was a millionaire by then, but money is never constant, it keeps flowing away like a gushing river. 

Saving up for an emergency is the best way to cope up in times when an excess amount of money is immediately needed.

An emergency fund stored up beforehand can prevent people from untimely issues like that of health, failure or even poverty; saving money may seem difficult in the beginning, cutting luxuries to save up, but the result of hard work and patience is always fruitful. 

Even if the emergency fund isn’t too big in amount, it’ll always help in reducing the amount of money. Some Americans reportedly tell that during the great depression in the 1930s, their saved up emergency funds helped them eat at least once a day for some time. 

Types of emergency funds

● Short termed

This type of emergency fund is usually for smaller emergencies like house repair, car repair, failure of a costly appliance, health emergency and much more. 

These should be in accessible accounts which usually bear little interest. Accessibility is the most important thing- since usage of a debit card or check writing is a must.

● Long term

These are for big scale emergencies like- earthquake, fire, unemployment, immediate purchase of some costly but necessary thing. 

These also need to be accessible but keeping them safe in an account that takes days to liquidate works fine, till the short termed emergency fund is well saved up. These have an increased level of interest.

Always remember an emergency fund should always be quickly accessible and easily liquidate (converted into cash) and should be kept at – no risk. 

Benefits of having emergency fund

● Stress free

Life without a ‘financial safety net’ is a life on ‘financial edge’ hoping to pass by without bumping into an emergency; it intimidates the financial stability and well- being of a person. 

Being well prepared for any kind of financial menace can make a person lead a successful and confident life. Stress is the cause of serious health issues; better keep away from it and start saving up for stability. 

● No unwise whims or fantasies

Have a separate account for the emergency fund; it’s the best way to store up funds. The more out of sight it is the more out of mind it will be, if it’s as close as on the debit card, it won’t be your fault but your four-five digit saved up money will lure you into buying a dress or the latest gadget. By keeping it in a separate account, you’ll know how much you’ve saved up and how much more you need to save.

● Away from bad financial decisions

It will keep you away from bad financial decisions; you’ll always have this thought stored up for the fund to be saved. All decisions will be risk-proofed when a goal of saving up stands ahead. 

Digits of the fund and why so much

According to financial experts, saving up to six to eight months worth of expenses is always the best. It’s painful to cut off luxuries which we treat ourselves with, or pamper our souls with new clothes and food. 

But these funds can help in times of serious trouble. Corporate jobs are always risky and demanding, unemployment can stand up unexpectedly with no warning bells. Taking the unstable economy in hand, a saved up fund of about 3 months expense doesn’t come to even close enough of being an aid during the emergency. 

Time takes a different toll when saving up for retirement; six month’s expense will look too puny. A saved up $14583 for funds will look like a small twig.

Building the emergency fund

The most disheartening aspect of saving up for an emergency fund is the contribution of a large amount of money. Saving $6000 per month seems out of reach for some people. 

But there is no need to pay everything at once; an emergency fund can be built up little by little with time.

Building the fund

First, make a well-schemed list of the expenses per month.

Food	$5233.71
Transportation (no car)	$225.4
Utilities	$201.76
Sports and leisure	$275.44
Child care	$2328.77
Clothing and shoes	$ 504.72
Rent (approx)	$1942.22

If the pocket is short, then some expenses can be shortened or cut. Cutting basic expenses is very difficult, but slowly with time, some improvements can be made. 

If you start saving up for six months, the total amount will cost approx $27000 which may increase with interests. 

Months	Cumulative expenses
1st  month	$ 4,658.98
2nd month	$ 9,317.96
3rd month	$ 13,976.94
4th month	$ 18,635.92
5th month	$ 23,294.9
6th month	$ 27,953.88

Daily expenses may vary from state and city wise, moreover the monthly income of a person and the people living in the house matter. 

Break it down

First, determine and make a monthly expense chart, then decide the figure of the fund needed as per the money left from the monthly income. 

Determine the time it will take to reach the goal based on monthly savings, breaking it down will help in keeping up with this goal as well as targeting for other things too. 

Wasted money

A family usually wastes its money up to 10% per month. Over usage of electrical appliances, electricity, ordering food etc can be stacked and used wisely. This money, be it little in comparison can be used up for the emergency fund.

Automatic payment

Automatic or direct payment from the checking account to the emergency fund is a good method of payment. Forgetting will not be a problem, and since it will be done by the bank the person will not worry about it for longer and will try to adjust to the changes.

Dividend earnings

Padding the account with dividend earnings is also a good method, dividend accounts are not meant for just investing the income they can also be padded up for the emergency funds.

With pain comes success, a saved up emergency fund will bring pride and assurance.

Peter Christopher is the personal finance blogger at Finance Care Guide and a guest columnist for many blogs that deals with providing practical solutions to different financial issues. Visit him on Google Plus and Twitter.

5 Things You Should Know as a First-Time Landlord

It’s never been a better time to become a landlord than now. Rental rates are on the rise, people no longer strive to own property, and the real estate market keeps on getting stronger. 

As a smart and farseeing person, you might consider rental income as a good way of building wealth. While it is obviously a good decision, there are some facts you should learn first. 

1. Consider it a job, not a source of a passive income

If you have never been a landlord before, you are likely to think that your job will be limited to finding tenants, signing rental agreements, and receiving monthly payments on your bank account. 

It’s ok if you think this way because the majority of movies represent the process just like that. However, the cold truth is that it takes a lot of time, efforts, and money to rent your property out. 

No one argues that becoming a landlord can be a profitable move, but you should realize the amount of work involved. To avoid potential problems, you need to invest your time into tenants screening. 

Plus, you should be ready to make repairs when something gets broken. You need to respond to your tenant’s requests and make sure they are satisfied with their living conditions. You must be ready to receive calls from your tenants in the midnight because there is an emergency. 

Sometimes you need to worry about your tenants delaying their monthly rent or ignoring utility bills. The list is already long but not yet complete. 

2. You need to get some legal education

It’s easy to break the law when you don’t know it exists. Chances are that you prefer to avoid litigations, so you’d better learn the local laws that regulate relationships between landlords and tenants. 

The bad news is that these laws vary from state to state. The good one is that you can easily find them online.

As a landlord, you should know that preferring one tenant over another can be considered a discrimination if the two applicants are of different races. There is a Fair Housing Act designed to regulate such issues and ensure that everyone is treated equally. 

Plus, there are clear regulations regarding the way landlords should deal with security deposits. What’s more, you should always comply with housing safety codes. In other words, you’ve got a lot to learn.

3. Being a landlord is associated with some risks

Decided to become a landlord? Get ready for adventures. Some of them will be fun, but the majority will not. 

For instance, you should be ready to wake up in the morning and find out that a part of your house is damaged. Alternatively, you can learn that your tenants have not been paying utility bills for a while.

Before you become a landlord, you should be prepared for unexpected situations. What you need to understand is that even the most comprehensive tenant screening cannot save you from untidy and irresponsible people. 

The best solution here is to get ready for the worst, but hope for the best. 

4. Not all tenants are created equal

Yes, all people are different. You can rent out your apartment for years and have no problems at all. 

Or you can get dozens of major and minor issues during a short-term rental. It all depends on what people happen to live in your place. That is why tenants screening is so important. There are many guides on how to conduct it, but most of them agree upon the following:

• Learn about your tenants’ current income
• Research their employment history
• If possible, get in touch with their previous landlords
• Evaluate his credit score
• Make sure there is nothing to worry about in terms of criminal background

Tenant screening may take some time, but the result is definitely worth it. The good news is that some of the checks can be done online. 

5. There are services that make things easier

As I mentioned in the previous paragraph, modern technologies can make landlord’s life easier. Now tenant screening can be done from your computer. 

The best property management services have already integrated tenant screening options into their online platforms. Thanks to such services, the process of tenant screening gets easier and faster. It’s never been a better time for becoming a landlord.

In fact, modern technologies have affected the world of property management in many different ways. Not only can you screen your tenants online, but you can also e-sign your rental agreements and collect monthly rents from the comfort of your home.

If you are reading this, chances are that your idea of becoming a landlord is serious. If this is so, then you should definitely give it a try. 

Remember to learn from your own mistakes and ask for professional advice in a moment of doubt. Becoming a landlord is way easier than becoming an astronaut, so leave your doubts behind and go for a new experience in your life. This one is going to make you money. 

5 Tips For Saving Money On Entertainment This Summer

With summer fast approaching, you might be wondering what fun things you or your family can do within your budget. 

If you know the right places to look, there are plenty of ways to gain access to fun things you like to do for less money. Here are five tips for saving money on entertainment this summer.

Have A Staycation

If going on a longer vacation, either out of the country or on a cross-country road trip, is something you'd rather not spend your money on, then consider a staycation. 

There are likely some very fun and interesting places to discover within easy driving distance of your home. Many museums and amusement parks have discount days that you can take advantage of as well.

Visit The Library

If you love to read, going to the library can save you a lot of money instead of buying the hottest new beach read of the summer. 

Most libraries have summer reading programs for both adults and kids, which can be a lot of fun. Your local library doesn't only have books - they have movies and music as well for you to borrow.

Migrate To A Streaming Service

Why pay a massive amount for a cable package that you barely use? Most of your favorite TV shows are available for online streaming as soon as the next day on Hulu, and Amazon Prime and Netflix always have a large back catalog of movies and TV shows to watch. 

Streaming services cost a fraction of the price of a cable package: both Hulu and Netflix's cheapest options are $7.99 per month while Prime Video is $8.99 per month.

Shop For Deals

You can get used books, for example, very cheap online, from local used bookstores and from book sales at libraries. 

Many sites such as Pristine Sales sell deeply discounted DVD box sets so you can own your favorite shows at a fraction of the cost.

Be On The Lookout For Free Concerts

Many cities host occasional free concerts, and you can usually find a bar or restaurant that offers live musical entertainment if you're a music aficionado. 

This is a great way to discover new music acts you might come to truly love, and it's made very easy by various smartphone apps that find nearby concerts for you.

You don't have to give up doing the things you enjoy to save money on entertainment. Whether you're into movies, TV, books or music, there are ways to continue to enjoy the things you like to do for cheap or for free.

Professional Tips On Running A Restaurant Business

Contrary to what you may think about the restaurant business from what you see in the movies, it is actually a very stressful business. It’s one thing to open up a restaurant, and a whole other to run it properly and achieve success with it. It requires quite a lot of discipline and hard work.

Still, with all the challenges in their way, a lot of business owners manage to handle the task really well. So how do they do it? It takes experience to learn how to serve amazing meals, offer the perfect service, and maintain a loyal customer base. 

Here are some of the best tips you can get from the experts.

Have a professional relationship with your staff

Your employees are your number one asset, so you need to have them work as a consistent team. How they deal with their daily tasks and serve your customers can make or break your business. 

While not every interaction with them has to be serious, there has to be a professional tone and manner in your relationship with them, in order to get the best out of what they can do. 

You need to have them working as one, so that your restaurant offers a consistent service to your customers. Schedule routine meetings to discuss the business, and have them come together for trying out new recipes.

Know and maintain who you are as a business

The fact is that it is impossible to be everything to every single person out there. If everything about your business is in line – accounting, staff, legal issues and all the other business related things – then your main focus needs to be your concept. 

The fact about your concept is that it will work or it won’t. But it is essential that you determine what it is and stick to it. Even if everything is not working according to plan, there is nothing worse than changing who you are as a business midway. 

It sends the wrong message about your restaurant, and is certain to result in failure.

Conduct regular surveys about customer satisfaction

You need to always be in check with what your customers think about you and how satisfied they are. You can conduct physical surveys by handing out printouts, or make the best out of online reviews. 

What you need to know is that not everyone wants and has the time to write an online review for you, so your online efforts will most probably take up to 25% of your inquiry. 

The case when people most often write an online review about the place that they have visited is when they are extremely satisfied or disappointed about what they experienced in your restaurant. 

Make the best out of surveys, as they are a great way to learn about how to retain your customers.

Keep your restaurant clean and organized

Nothing can turn away customers as a restaurant that doesn’t make the best effort to be perfectly clean and organized, in order to provide the best possible dining experience. 

Restaurant cleaning professionals from Sydney suggest that the best idea is to hire a professional cleaning service to do the job on a regular basis. This way you can make sure that your restaurant is always in pristine condition, and that customers can truly enjoy their meal. 

After all, it is the place where people come to eat, and nobody likes to have a dinner or lunch in a place that isn’t concerned about cleanliness.

Have your competition in mind

When it comes to competition, experts take two sides. One side thinks that, as long as the market isn’t too saturated, having some competition is good for you. 

The reason to this is that it works as a drive to always keep improving your services and offer better food to your customers. Furthermore, if you are in the area where there are multiple restaurants, this fact itself will drive traffic to you. 

On the other hand, there are experts that think that you should start your business somewhere where there will be no competition at all. This way people will come to you for what you have to offer, because you will be the only one with such services in the area. 

If you are a Chinese restaurant, you might want to open your business somewhere where no one else offers Chinese food. Both trains of thought make sense, so it is up to you to decide which side you are going to choose.

In summation

Running a successful restaurant business can be hard, and requires determination and discipline. You need to have a good understanding of your employees, your customers, and your competition. It also goes without saying that your restaurant needs to be perfectly clean and presentable. If you follow these advices, running your restaurant business can be made easier.

Financial Planning: 4 Reasons Why It Is a Good Idea

We know we need to save, but saving is not enough to really survive in today's economy. Having savings brings no return. 

You need to not only know how to save, but how to use your savings properly and spend well. Savings are important, but so is financial planning. Among the many reasons financial planning is a good idea are:

Security

Security is found in knowing that there is something there when you need it. Security lessens stress, and less stress means less risk of heart-related diseases. You want to make sure that you have security in knowing that if you were to have a financial emergency you would be prepared.

Stability

Stability is found in building assets that grow. This includes a home, rental property, a 401(k), and passive income from bonds or dividends. This can allow you to grow a lot financially in many ways other than through savings.

Wealth

Wealth is grown over time by having a stable asset base to provide a secure income. You want to make sure that you start planning well financially now so that you can build up your income and have more secure and stable finances in the future.

Access to funds

By seeing increase in all of these other areas you can also see increased access to funds, be it from a fast lender like Payday Express, or a different bank such as Capital One. Increased access to funds is essential to being able to stay on top of your money and stay financially secure.

Beyond these reasons there are two areas of financial planning we want to touch on. One is when to start planning; the other how to do it properly.

When to Begin Financial Planning

The truth is that you have already begun planning financially. It begins each time you get a paycheck and decide what to do with it. 

If you're in line for the latest iPhone, then you've financially planned to spend that money, and the monthly charges. Since you have already been doing this the question is how to do it in a fashion that will help you make some serious money.

How to Plan for the Future

Have you ever heard the phrase pay yourself first? This is the process where you plan for retirement by having money taken directly from your check so that you never miss it. You can do this with $25 per month or $2,500. 

The key is to set aside an amount of cash that you can reasonably part with, and then you watch it grow. For more info on how much you can make if you started today you can use a savings calculator. 

By plugging in the numbers you'll see that by saving just $100 per month over 30 years at 8% interest your $36,000 contribution will more than quadruple to $149,000!

There are many good reasons to do financial planning. The key is to recognize you're already doing it, and then to make the choice to pay yourself first. 

After that be sure to set money aside for savings and properly plan out how to spend your paycheck. It really is amazing how much of a difference a little planning can make.

The More You Know: Knowing Which Insurance to Buy When Travelling Abroad

It can be a difficult thing looking for insurance, but taking the time to ensure you purchase the right plan can save you money in the long run. Travelling and insurance can be even more complex as you’ve got to consider the local laws, health systems and how comprehensive and portable your medical coverage is. 

Travel insurance can make things simple, but what if short term cover is not appropriate for you?

This article, by leading international insurance broker UAE Medical Insurance, explains what your health insurance options are when heading overseas and why one may be more appropriate than others, depending on your needs. 

Travel insurance

If you’ve ever travelled before, you’ll know a thing or two about travel insurance. It’s the most common product offered to anyone travelling overseas and is generally cheap and simple. Your typical travel insurance benefits will include:

• Flight cancellations 
• Travel delays 
• Emergency medical expenses, or necessary medical evacuations 
• Repatriation costs 
• Accidental death and dismemberment 

Travel policies are often better for short term travellers, normally covering up to 3 months but some insurers can provide travel coverage for up to 12. 

The added advantage of travel plans is that they cover you for things such as lost travel documents and flight delays, however the health benefit components are generally less comprehensive. The main aim of travel plans is to get you healthy enough to return home.

The other advantage of a travel plan is that they are often the least expensive health coverage option when abroad. 

They’re readily available from most airlines and travel agents who can add the cost to your whole booking fee, and include the documentation with your tickets. Keep in mind that travel plans often exclude pre-existing conditions, charge more for certain regions of the world, and don’t reimburse you if you cancel your trip. 

Local healthcare coverage

Relying on the local healthcare system of the country you’re visiting can be a mixed-bag, and really depends on the type of system the government provides:

• Free, state funded health cover 
• Compulsory state provided insurance 
• Optional or mandatory private medical insurance coverage 

Some countries, such as the UK, can provide tourists with fantastic medical coverage at virtually no cost (through its nationalised NHS system). 

France’s Couverture Maladie Universelle is paid through compulsory deductions from employee wages, so working expats can attend healthcare facilities like a French national would. Finally, countries like the US and Dubai, legally require you to hold private medical insurance for entry.

If you’re a mid-to-long term traveller, purchasing a health insurance plan from the country you’re based in can make more sense. 

They’re like purchasing cover in your home country and can come with a range of comprehensive benefits from inpatient and outpatient care, to vision, dental and even maternity coverage. Local plans will be more expensive than travel plans and will often only cover you for the country you’re in.

Many of you enjoying travel in your later years will also need to be aware that some insurers will either increase the premium for older customers, or may even flat out deny coverage altogether (retirees in places like Nicaragua will find it impossible to find local insurance). 

Pre-existing conditions can be difficult to find coverage for, and you’ll also want to consider the state of the health system in the country you’re in.

International medical insurance

International medical plans are the most comprehensive form of insurance you’ll find on the market, however they do come with a hefty price tag. They’re designed especially for longer-term expats, both working and retirees, and can include the following benefits:

• Extensive medical coverage both in your home country and abroad 
• Options to add dental, maternity and wellness benefits at an extra cost 
• A wider choice of private and semi-private hospitals, medical staff and care options to choose from 

These plans are the most useful for travellers as they will often act as one policy that can cover nearly all of the countries you can think to visit. 

This can make for a lot less stress when booking trips and heading to other places, and you’re often guaranteed to have access to the best healthcare facilities and professionals available in a country should you need it.

Older travellers will find international insurance plans to be the most flexible out there; allowing you to tailor your coverage and benefits to something that best suits your needs. 

Insurers will be more open to accepting applications containing pre-existing conditions, however you should always be clear about what coverage you need when applying.

Author bio: Choosing the right option for you

Nobody knows your situation and needs like you do, but it can be a good idea to talk things through with an insurance expert. Broker UAE Medical Insurance (UMI) has been providing high quality health insurance to expats both in the UAE and around the world for more than 15 years. Their expert team strive to deliver fantastic insurance solutions with exceptional customer service.

To find out how the UMI team can help you save money on your insurance needs abroad, contact them today!