Finance Tips and Tricks
Credit Card Ownership
Real Estate Ventures
Reverse mortgages are instances where you mortgage your home in exchange for loan payments that are usually made in staggering amounts. You are given the right to continue living in your home as long as you pay the taxes to continue maintaining the property. When you die, decide to sell the house, or move out, your spouse or your estate will need to pay for the loan. Reverse mortgage loans are often used to be a source of income as the payments can be given on a staggered basis. Reverse loans have three types. Reviewing them will help you decide which type of reverse loan will fit you well.
- Single Purpose – this type of reverse loan show a specific purpose for the amount of money being received as a loan. The loan amount that is received may be used for repairs, maintenance, improvements or even realty taxes paid. This is often taken by individuals who have low to moderate income. They supplement the reverse mortgage to pay for additional expenses of maintaining a home.
- Proprietary – as the name suggests, these loans are being supported by proprietary institutions that developed the property. Proprietary reverse mortgages are not insured by the government and become limited to the amount of risk that a lender is willing to take. The amount of loan will be estimated from the amount of the property’s appraised value which can be a big amount of money. Unlike the single purpose reverse mortgage, the proceeds can be used for anything the homeowner. This includes in paying off the existing mortgage that the property is in. This type of reverse mortgage is not as common as the third type of reverse mortgage discussed below.
- Home Equity Conversion Mortgage (HECM)
This is the most common reverse mortgage that is being offered. Similar to the proprietary reverse mortgage, the proceeds can be used for anything that the mortgagee wants. Home Equity Conversion Mortgage (HECM) as the name implies allow the homeowner to convert the equity value of the property into cash. The amount is based on the appraised value of the property and the age of a borrower which is often granted to senior members of the society.
Reverse mortgages are ways that can be used to create cash and secure the property without having to leave and allow the borrower to use the home until they die or until the home is sold.
Sooner or later everyone will experience some kind of financial emergencies at least once. This is the reason why borrowing money has now become a necessity to individuals. This is especially true for workers whose income may just be enough to cover their day to day expenses. For these types of individuals, there is a limit to where they can access a loan and it is usually their credit card or the popular payday lenders. Taking a personal loan against a credit card or to apply for a PAYDAY LOAN has its positive and negative side. The following may help you analyze where to turn to.
Cash Advance Loan A.K.A. Payday Loan
Cash advance loan known also known as payday loan is a type of credit and are normally easily accessed by individuals who have regular fix income. Payday lenders are commonly available both in the street and online. This, therefore, makes it easy for cash-strapped individuals to gain access to them. The main working of a payday loan is for the lender to lend the money to the borrower until the latter’s next payday. A payday loan is usually short-term and does not normally go beyond a month. The reason for this is because salaries are usually given at middle and at the end of the month so short-term money lenders expect to be paid at the time the borrower receives his salary. Some lenders would prefer a post-dated check which could be immediately deposited at the loan’s maturity date. The only requirement for payday loan sg is the borrower’s proof of income.
Credit Card Advance
Credit card advance is totally different. There is neither processing nor documentation to submit. The Borrower already has the credit card so all he has to do is swipe it (with the assumption that he has a credit card) and the loan comes out of the ATM. Cash advance from a Credit card can cost more considering that cash loan provided by the same carries a very high interest. Aside from this, it can tremendously increase the balance of the card thereby raising the finance charges that it will incur.
“If you are born poor it’s not your mistake, but if you die poor it’s your mistake.” –Bill Gates
In September 2016 out of estimated 7.3 million populations in the Philippines, 30% considered themselves as poor. While in March 2018 SWS survey poverty rate was 29%. These statistics indicate that every parent should prioritize their kids to have personal financial literacy as early as Kindergarten years.
During their younger years, visual learning is the most effective tool in teaching them personal finance. Instead of a piggy bank, give them a clear jar where transparency is
visible. Every day remind your kids to put at least five pesos coins to the jar after a week let them appreciate the value of saving money. Show them the coins they were able to fill it up
over the week.
Lesson: The sooner you save money, the faster it multiplies.
When going to the mall for quality time with the family, try to bring the clear jar with you. If the kids want to buy a toy, let them grab money out of the jar and hand it over to the
cashier. If the coins from the clear jar are not enough to buy the toy, as a parent you need to instruct them that they have to wait to buy something they want. Many shoppers would think that you’re just being thrifty, but this is one of the great ways to teach the kids how to handle personal finance properly.
Lesson: Kids will realize that every time you go to the mall it’s not necessary that they must buy something for themselves.
Sometimes you have to save up for it before you can
purchase. You don’t have to wait for their teenage years to teach them about personal finance. You can start by doing these two examples at their very young age.
Nowadays, everyone wants to invest in real estate property. The problem is, there are so many people who don’t know how and where to find those property listings. Whenever people try to buy on the open house, or in the open market, it may be quite difficult to come across the perfect deals for their specific property needs.
Some may be able to get a home with a lower bid through a sales agent or a broker, but if you’re really looking for real savings that will create lots of earnings in return, you have to consider these options to get a maximum potential investment value.
One of the usual ways of finding a home or property listings is through the Internet or through online advertisements. Because of internet popularity, online property listings have become one of the best ways to check on properties or homes.
Some people may find the old method in finding property listings like newspaper as their option but people today are now choosing the online listings because finding the listings on the newspaper can consume a lot of their time. With the newspaper listings and advertisements, you have to check on the long list of properties and choose the ones that you find interesting then you still have to note down the contact numbers and other details. Then you will still have to contact the agents or brokers to make an appointment so you can view the property. Another disadvantage of the newspaper property listings is they seldom update their post. So if a deal has been made in the in the process, you will not be informed unless you call up the agents or the property owner.
With the online home and property listings, there are a lot of great websites that are always updated every day. Plus the fact that new property listings are freshly updated so you don’t have to wait for the newspaper to be published. That’s why if you have been checking on the newspaper listings as your only source of information or details, you will only get an outdated information. You may be seeing a property that has been sold out on the market days and days before.
Furthermore, you don’t need to check on all the property listings to make sure you got the perfect property for you. You can easily filter your search online in order to get the property listings only for your specific needs. This could be a great advantage because newspapers listings are commonly classified based on the site of the property. You can really save your time by just browsing through the property listings that you interested in investing.
For any individual specifically for the sole breadwinner of a family, managing and controlling your finances to make it stable can be very difficult. This is especially true if you only have minimal savings plus relying only on a fixed income each month. But no matter how difficult it can be, it has to be done and the only way to do it is proper management and knowhow on balancing your monthly income against your expenses. If you look at it, this is simple enough. You don’t have to be a genius to know that proper management of your money is to make sure that you don’t spend more than what you earn.
If your expenses exceed what you make in a month, then you are really in big trouble and may end up borrowing money from various personal loan lenders or maxing out your credit card which will surely put you in the poorhouse. Here are some tips that you may find helpful in managing your finances.
Proper Management of your Money
Budget is the key. Proper balancing of what you make and spend is the best and only way to make sure you will be financially afloat. If possible, aim for at least having 10 to 20% of your income placed in savings. This may look hard but very doable. Most people actually can save a lot if only they are able to control the urge to buy impulsively.
Yes, this is one of the major causes of why people are not able to save. People are basically vain and this is the reason why they go on shopping sprees. If you can take this out of the equation, it is a sure thing that you will be able to save. Second, make sure you focus more on the necessities (such as utilities, education, & insurance) instead of luxuries.
For instance, if you have an old car but still working and serving its purpose, why buy a new one? The point here is you can always postpone purchasing luxurious items until such time you have enough surplus to do so.