Second Hand Savings

Mar9

Filed Under Budgeting

When it comes to saving on purchases there are some sure fire ways to make it happen. A plethora of people already realize that there are some distinct advantages to purchasing second hand wares when possible.

As long as the items are in good condition and available for a reasonable price, why would a person not take advantage of the opportunity to save? Buying second hand saves you money, allows someone other than a faceless corporation to put a few bucks in their pocket while saving the item from ending up in a land fill, gives you a thrifty feeling (especially if you haggled for a better deal) and so much more. There are tons of ways to take advantage of great deals on second hand items.

Look at the popularity of online auction sites and classifieds. There are a multitude of listings and sales involving gently used items every day. Even with the shipping fees that can possibly come into play, the opportunities to find a winning deal are numerous.

Flea markets can be a lot of fun to go to. You never know what you might find. There are flea markets of varying sizes all over the place. Some are strictly indoor or outdoor, but most have vendors both indoors and out. Flea markets have some awesome deals. You can often get your hands on brand new merchandise for pennies on the dollar at places of this nature as well.

Second hand stores can be found in most any nook and cranny. You will see them advertised as new and used stores, consignment shops, resale shops and other names of this sort. From clothes and house wares to books, toys and furniture and everything in between, there are deals to be had at your local second hand store.

Spending the weekend rummaging through stuff at garage sales and raising your bid card at auctions is actually pretty interesting in a lot of cases. Sometimes people practically give away things that are worth a small fortune (antiques and collectibles primarily).

Newspaper ads are another place to search for items you need and would like to pick up used. In addition to local newspapers, most areas have papers that are devoted strictly to classified ads.

Keep in mind that just as you can easily make purchases of used items to save money, you can also use those same places to sell your unwanted stuff for quick cash.

© 2009 Angelia Hoffman

How to Build Credit When You Have No Credit

Mar5

Filed Under Budgeting, Debt Tips, Debt help

Building credit can be a tricky task. Most lenders will want to see that you have some experience with managing debt before extending credit to you. Unfortunately, if no evidence of your previous debt management experience is reflected on your credit report, you are considered a much higher lending risk. This can result in your credit or loan application being turned down. In the finance industry, individuals with no credit are as great a risk as those with bad credit. Any loan or credit card that reports to the credit bureaus can serve as a good foundation on which to build a credit history. If, however, you have no credit at all, there are several options available to you.

Apply for a Secured Credit Card

A secured card is a type of credit card that is frequently marketed to individuals with bad credit. Companies that offer secured credit cards often do not evaluate applicants’ credit scores at all. Secured credit cards function differently than the unsecured variety. With a secured card, you will be expected to make a deposit to the credit card company. The amount of your deposit will, in turn, dictate your spending limit. By making purchases and paying for those purchases as soon as you are billed, you can build credit.

Borrow Against Your Own Money

If you have a savings account, you can use it to build credit. Visit the bank where your savings account is held and explain to a loan officer that you would like to build credit, yet have no credit to build upon. Some banks will be willing to freeze your savings account and grant you a personal loan for the same amount. Your savings account serves as collateral to guarantee the loan should you fail to repay it. In this way, the bank can extend credit to you with little to no risk. You, in turn, build a credit profile.

Get a Co-signer

A co-signer is an individual with good credit who agrees to sign for a loan with you. Banks are more willing to grant a borrower with no credit a loan if he or she has a co-signer. By signing the paperwork, your co-signer is agreeing to be responsible for the loan should you default. The bank will then consider you less of a risk because it has a dependable consumer who is willing to assume responsibility for the loan should you fail to make the payments.

Take Advantage of Student Credit Card Offers

If you are currently a college student, you may find it relatively simple to be approved for an unsecured credit card with no credit history. Credit card companies often set up display booths or hand out flyers on college campuses in an attempt to procure more applicants. Even though many of the college students who apply for these credit cards have no credit, the tactic is still a smart business move. The credit card companies are banking on the fact that college students will keep their cards for years to come and remain loyal customers. If you want to build credit using an unsecured credit card, there truly is no better time to do so than when you are in college.

Building credit may seem challenging, but once you have an established credit profile, it is much easier to get approved for loans and credit cards in the future. This is because potential creditors can review your credit report and see how you manage the debt that you currently have. It is imperative that you meet your financial obligations and pay your debts in a timely manner. Doing so demonstrates to anyone viewing your credit file that you can be trusted and are a safe lending risk.

Choosing the Right Financial Planner

Mar2

Filed Under Budgeting, Debt Management

by beconrad

In the wake of the Bernie Madoff scandals and other high profile Ponzi schemes many investors are asking themselves if it is possible to find a financial advisor they can truly trust.  The good news is that there are plenty of honest financial planners out there.  The bad news is that it can take quite a bit of time and effort to track them down.  But with a little bit of knowledge and some good planning investors can find the professionals they need to help them achieve the goal of financial independence.

One of the most critical parts of your financial education should be learning to tell the difference between commission based, fee based and fee only financial planners. This difference may not seem that important, but as you continue your financial education you will come to see just how critical it really is.

Commission Based Financial Planners

The vast majority of men and women working as financial planners and financial consultants today are commission based individuals.  That means that they receive a commission each time they sell a particular mutual fund, stock, annuity or other investment vehicle.  These financial planners do not charge clients for their services – instead they make their money off of the products they sell.

While investors may feel that they are getting a good deal with this type of financial advisor – after all there are no fees – in the end it is hard to determine whether the advice given is really in their best interest and not the best interests of the planner.  Even if there is no overt attempt to deceive there can still be a subtle pressure for the planner to steer clients into investments that will generate fat commissions.

Fee Based Financial Planners

A smaller part of the financial planning market is occupied by fee based financial planners.  Unlike financial advisors who work strictly on commission, fee based advisors are also paid by their clients, either on an hourly basis or as a percentage of the portfolios they manage.

The problem is that fee based advisors can fall victim to the same conflicts of interests as their commission based peers.  Even though they may derive a substantial portion of their income from the fees charged to their clients, fee based planners also are paid commissions, and this can influence the kinds of investments they recommend.

Fee Only Financial Planners

Unlike the other two types, fee only financial planners do not derive any income at all from commissions.  This means that they can truly be an independent voice for their clients and that they can recommend investments that are truly in his or her best interests.

When looking for a fee only financial planner it is important to look for an individual who is willing to serve as a financial fiduciary, meaning that the advisor takes on a legal obligation to act in the best interests of the client at all times.  Be wary of any financial planner who will not agree to act as a financial fiduciary.

Finding a financial advisor you can trust is never easy, but in the end the results are well worth the effort.  Putting your hard earned money in the hands of a financial advisor who makes poor recommendations based on his or her own self interest can set your financial goals back many years, so it is definitely worth your while to look for an advisor you can trust.

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