How Much Money Should You Save for Emergencies

How Much Money Should You Save for Emergencies

You’ve heard financial experts say it again and again. Building an emergency fund is the starting point of financial freedom. In fact, emergency funds should no longer be an option but a necessity every consumer should strive to have. What is an emergency fund? An emergency fund, as the name suggests, serves like a cash reserve you’ve set aside for unexpected expenses and emergencies. Especially in today’s volatile financial market, you cannot take chances anymore when it comes to your finances. What if you lose your job? What happens if you have a medical emergency that your insurance does not cover? How about if your car unexpectedly broke and you have no cash for repair? These are unexpected circumstances you do not wish to happen but still needs to prepare for any way just in case. An emergency fund is exactly the type of fund that can cover these bases for you. How much do you need? To know how much emergency fund you’ll need to save up for, the first thing to do is figure out how much you spend each month. This should include all expenses such as utility bills, food, rent if applicable, clothing, transportation and etc. As a rule of thumb, experts recommend that consumers aim to save up three months’ worth of your monthly expenses. Three months should be ample time for you to get back on your feet again after an unexpected financial situation. How to start saving for your emergency fund? Now that you know how much you need for your emergency fund to be enough, the next step is to devise...
Quick Facts about Your Credit Score

Quick Facts about Your Credit Score

Whether you’re planning to take out a personal loan or apply for a phone contract in the future, you need to understand that your credit score plays an important role with your approval. Put simply, your credit score is a quick indicator creditors and providers use to determine your credit worthiness. A bad credit score obviously means bad news. You’ll generally have a harder time getting approved for any financial product when you have one considering that you’ve been tagged as a high risk borrower. At this point, you might want to do something about your bad score but before you go on and try to improve it, here are some things you need to know: What is a credit score? A credit score is comprised of a three-digit number which generally falls between 300 and 850. These scores are labeled into five things starting from poor to fair, good, very good then excellent. When providers run credit checks, the check your score and consider it as a major factor when providing approval or disapproval for your application. How is it calculated? There are different credit report agencies that calculate your credit score. Calculations are based on your credit report which you can double check for free at Experian. When formulating your credit score, there are several factors that are taken into account which may include your payment history, amount of debt owed, new credit accounts and so on. All of these factors are assigned a numerical value and calculations are then based on how much they affect your credit worthiness. Payment history, for example, plays a huge role...
Tips to Choosing the Best Smartphone

Tips to Choosing the Best Smartphone

Whether you’re buying your cellphone with cash or applying for a phone contract to subsidize its cost, you need to make sure you know how to pick the right phone for your needs and budget. When it comes to choosing the right smartphone, it’s not just about what’s popular at the moment. There are key considerations to take into account especially if you want to make your investment count in the long run. To help you along, here are things you can do: Set Your Budget Before you start shopping around, it is imperative to set your budget not only for the handset you have in mind but also for the phone bundle you’ll need. Prepare to shell out money if you’re after the latest handsets available in the market today especially if you’re paying for it upfront. If you’re going to get the smartphone via a phone contract, make sure you know how much fixed monthly fee you can afford. While setting your budget, you’d also want to assess how you will use your phone. Is it mainly for calling, texting or browsing the web? Depending on what you need, you’ll need to find a phone contract deal that offers the right handset and the right phone bundle to suit your needs to a tee. Choose Your Carrier Once you’ve set the budget, the next step is to choose your carrier. This is very important since no high end handset will matter much unless you have excellent coverage for your phone services. When comparing providers, other than coverage, you need to consider key factors such as handset selection,...
How to Make the Most of Credit Rewards

How to Make the Most of Credit Rewards

As a way to hook consumers, majority of credit card providers offer cash rewards in exchange for your loyalty. If you’re especially a frequent credit user might as well make the most of your rewards, right? Whether you want to earn enough airline miles so you can travel for free or you want those cash backs, below are things you can do to maximize what your credit card can offer in terms of rewards. But first things first, before you can avail of the rewards, you’ll need to first understand what type of reward you want so you can look for the right type of card. Remember that different types of credit cards offer different types of rewards. Also important is to consider other key factors such as interest rates, APR, credit limit and annual fee among others things when looking for a card to apply for. If you’re ready to maximize your rewards, here are three types of credit card types and rewards you need to know about: Travel Rewards Credit Cards If you want to take that domestic flight for free, you’d be wiser to opt for credit cards that offer a generous sign up bonus miles. Some credit card providers, for instance, offer up to 50,000 miles in bonus when you sign up which you can either save up for later or convert into a free airplane fare. When you hit the spending requirement for the first 3 months, you may also earn more miles. Later on, you can earn set miles per sterling pound you spend using the card. Travel rewards cards, however, is not...
8 Financial Mistakes to Avoid at All Cost

8 Financial Mistakes to Avoid at All Cost

No one is safe from making financial mistakes. Everyone, yes even financial experts, make them at one point or another. Some mistakes are not so detrimental you can use them as learning experiences. Other mistakes come with consequences that you are better off learning from others rather than experiencing them yourself. Below are some of the common and foolish mistakes people commit when it comes to their finances, which you’d want to keep away from. Prioritizing old debt first When you’re making effort to pay debt, it should be a good idea, right? Not all the time apparently. According to experts, if you’re focusing on paying old debt first and disregarding debts you’ve missed a few months back, you may be doing it wrong. Rather than keep up with debts from years ago, it might be best to change your debt payment strategies for several reasons. The most important of which is that your old debt may be old enough that your creditor cannot sue anymore. Paying that old debt at this point will just restart the statute of limitations. Spending money you don’t have This has been said over and over again but people keep doing it anyway. If you want financial success, you need to stop spending money you don’t have. To be even more specific, stop buying things you don’t need with money you don’t have. In other words, use your credit card wisely. If you don’t want to join the alarming number of people who drown in credit card debt, you need to be more careful with your spending. Match it with what you can...
How to Find the Best Bad Credit Phones

How to Find the Best Bad Credit Phones

Finding the best mobile phone deal when you have good credit is difficult enough so it’s safe to presume that it will be more difficult when you have bad credit. Fortunately, there are now providers offering bad credit phones designed especially for people who have been struggling to get a phone contract. But just the same, finding the best deal may prove challenging. To help you trim your choices to the best and most suitable deals for your needs and budget, here’s what you can do. Compare Providers One of the first things you need to do obviously is to compare providers. You need to look for one with a solid track record and has been in the business for a few years to ensure that you’re in good hands. Compare important factors such as coverage, handset selection and cost. Compare Tariffs To further help you find the best provider and phone deal, you’ll need to compare phone tariffs. But before you shop around, it is recommended to assess your needs for call, text and data on a typical month first. Sit down and know your needs so you’ll have better chances of hooking to the right plan that will meet both your needs and budget. You can start comparing tariffs at http://www.uswitch.com/mobiles/compare/contract_phones/. Read Customer Reviews Reading customer reviews will also help. After all, there’s no better way to learn more about your provider’s service but through previous and existing customers. Take time to seek recommendations from family and friends then read customer reviews to ensure you’re on the right track. Read the Small Print Last but not the...