Justin Weinger, Author at Dinks Finance

When Car Insurance Rates Increase, Here’s How to Cut Costs

Posted on May 30, 2021 - 1:31 pm by Justin Weinger

Now is certainly not the time to see an increase in your car insurance premiums. It’s especially frustrating if the pandemic has resulted in your vehicle being one of the cars driven less than 25 miles a day.

Find out the reasons why your insurance goes up and which factors you can and can’t control. Let’s tweak that adage. What goes up can come down — at least when it comes to your car insurance! Here are some tips and ideas for cutting those costs.

Why Your Car Insurance Rates Rise

Are increases in your monthly bills making you count your pennies? While knowing the reasons for any increases in your car insurance won’t necessarily help your budget, it will help you better understand what’s going on.

Car Insurance Increases: Cost of Doing Business

Car insurance rates have been steadily on the rise. In the past decade, they’ve gone up nearly 30 percent nationally. The average annual car insurance premium is $1,548. And in some U.S. cities, that yearly price tag is $6,200.

The car insurance companies are incurring higher costs and, unfortunately, passing them along to all of us. There are several across-the-board increases.

Up until the pandemic, people had been driving more, causing more accidents and more payouts for claims. Those claims are higher thanks to rising medical costs and car repair prices. Parts themselves are costing more, too, especially imported parts.

There’s also a rise in car theft — one every 33 seconds, in fact — and the stealing of more expensive cars.

And don’t forget about car insurance fraud. The Coalition Against Insurance Fraud estimates fraud is costing consumers over $29 billion a year from false-injury claims, drivers lying on their insurance applications to even fake auto glass claims. Insurers are trying to combat this with anti-fraud technology, but that initial investment costs them money.

Car Insurance Increases: Personal Costs

There are many changes in your own life that can raise your insurance rate come renewal time.

An at-fault accident will definitely increase your insurance risk and so follows your rate unless you have accident forgiveness on your policy.

Serious offenses like DUI/DWI or multiple speeding tickets will flag you as a higher risk. Minor offenses can count, too, like running a stop sign, running a red light, making an illegal u-turn, or passing another vehicle illegally.

At least you won’t be dinged for non-moving violations, like parking tickets. Depending on your state, you may be able to avoid an insurance rate increase if you attend traffic school. If you fight your ticket in court and win, your driving record will not be affected.

Adding a vehicle or a driver could increase your rates. Yes, insuring two cars with the same provider is cheaper than insuring two cars separately, but your insurance will still increase.

And adding a driver, especially a teenager or a driver with a poor record will cause rates to rise.

Surprising Car Insurance Increases

Even if you’re not at-fault for an accident, you could see higher insurance. Some states allow a rate increase, and in the eyes of insurance companies, the more accidents you have, regardless of fault, the higher your risk.

Also, your insurance company can still be liable for your injuries or damage to your vehicle if you carry uninsured motorist coverage.

Comprehensive claims can raise rates. Your rate may go up for incidents out of your control, depending on your insurance company and your state. These incidents can include theft and vandalism, hitting an animal, fire, broken glass (including a cracked windshield), weather damage, and other acts of nature.

Factors Affecting Your Insurance Rate

In addition to high-risk violations, annual mileage, driving record, marital status, and gender, here are the other items insurance underwriters look at when they determine your premium.

Location

Anytime you get a new ZIPcode, you could have higher car insurance — even if you’ve maintained a perfect record. ZIP code is one of the major factors that determine rates because data reflects if your area has a high rate of theft, as well as a higher rate of claims, be they from accidents or weather.

There’s an additional consideration if you move to another state. Since car insurance laws vary by state, your new state may require higher amounts of coverage as well as additional types of coverage.

Say you’re a native of Keene, New Hampshire, and you’re looking for your big break and all of the amazing things to experience in New York, New York. Your average car insurance, based on your move alone, will go from $843 a year to almost $1,300.

Age

Want to feel like a teen again? Well, you can get close to it when you’re over 70, at least in the eyes of car insurance companies. They see the young and the elderly as high-risk drivers — youth for their lack of experience and higher tendency for distracted driving; seniors for their fading eyesight, hearing, and reflexes, as well as side effects from prescribed medications.

Credit Score

If you’re in California, Hawaii, or Massachusetts, you’re in luck. These states are not allowed to use your credit store as a factor to determine your rate. In all other states, insurers’ philosophy is that the more negative your credit history, the more positive your odds for filing a claim, so the higher your insurance rate.

How to Bring Down Your Premium

You have several opportunities to chip away at that vehicle insurance rate.

Readjust Your Coverage

When you finance a car, your lender requires you to carry “full coverage” which is liability, collision, and comprehensive. But once you pay off your car loan, contact your insurer to review whether you need to keep comprehensive and collision coverage. It is not a minimum requirement in all states.

A good rule of thumb about when to cancel comprehensive and collision insurance is if the annual premiums for it cost more than 10 percent of your vehicle’s book value. Just be sure to have the money to repair or replace your vehicle in the event of a total loss.

If you raise your deductible, you lower your premium. For example, doubling your deductible from $500 to $1,000 could potentially save you nearly 10 percent in premium costs.

But again, make sure you have enough savings to cover paying more out of pocket if you are in an accident.

Look into usage-based insurance if you’re a low-mileage driver (under 7,500 miles per year). Nearly all of the major car insurance companies have hopped on the bandwagon of pay-as-you-go (or pay-as-you-drive) car insurance in which you use an app or an installed device to monitor your mileage and save on your insurance, from 10 to 40 percent.

Go for the Discounts

Each of these common discounts can save you anywhere from 2 percent up to 10 percent on your rate!

Bundling (vehicle and home or renters insurance with the same provider)
Multi-Policy (more than one vehicle)
Safe Driver
Anti-Theft Device
Defensive Driver Class
Customer Loyalty
Pay in Full
Online Bill Pay

Another way to be financially savvy is finding discounts. Don’t forget to ask about these less common discounts that insurers may not even mention.

Good Student – maintaining a grade point average of at least 3.0
Senior Citizen – some start at age 55
Organizations – school alumni groups, credit unions, and auto clubs like AAA
Occupations – nurses, teachers, first responders, military and veterans, federal employees, etc.

Shop Around

Advice to look into other car insurance companies at least annually is not just a throw away. I recently did it and saved over $600 annually. While car insurance companies use the same basic factors to determine price, you will never get the same price.

So start with the convenience of online shopping: Get free online quotes, then follow up with at least three companies to see their offerings in basic rates, special programs, and discounts. Now is a perfect time for some good news. Make yourself happier by easily saving yourself some money.

Karen Condor writes and researches for the car insurance comparison site, Insurantly.com.

Financial Benefits of the Household Budget

Posted on March 21, 2021 - 7:51 pm by Justin Weinger

Perhaps, you have the mindset that adopting a household budget will prevent you from living. This is simply not true. In fact, a budget will open the door to a better quality of life. Listed below are a few benefits that come with a household budget.

Excessive Debt

This past year was probably anything but a breeze regarding your finances. Lost or reduced wages put a large percentage of the workforce in survival mode. As a result, you used any means possible to make good on your financial obligations. Credit cards you once used to buy things you wanted, became an additional source of income for essentials. Now, you have much higher balances than you’d like, taking you out of your comfort zone. Larger credit card balances unfortunately equal higher minimum payment requirements. Once your credit card balances max out, reducing them becomes a tough challenge.

Reducing Debt

A household budget gives you real numbers regarding your current debt. With this information, you can take steps to reduce it. Some people choose to pay more than the minimum payment on the card with the highest balance. Others choose to pay off the one with the lowest balance to feel a sense of accomplishment sooner. If your balances are too high to reel in on your own, the experts at Strategic Consulting may be able to help. These professionals can provide several options, allowing you to select the strategy that works best for you.

Separating the Needs From the Wants

A household budget factors in everything from the monthly mortgage or rent to the gas in your tank necessary to get to work. The needs are top priorities, whereas the things you want are items you work towards acquiring. This helps you stay on track with your monthly expenses and avoid missed or late fees on your debt payments. As a result, your credit score climbs upward, making you desirable to lenders, allowing you to achieve the lowest interest rates.

Investing in Your Retirement

Using a budget, you should factor in a set amount to contribute monthly to your retirement. This helps you enjoy a good quality of life now and in your golden years. If you’re counting on Social Security to fund your retirement, you’ll miss out on living. If you have a 401k through your employer, make sure that you contribute the largest percentage available. If you’re self-employed, you can open your own 401k or Roth IRA and mirror contribution amounts offered by employers. Real estate is another form of investment that can help fund your retirement. While there are no guarantees of turning a profit, a majority of investors make a decent second income, while some earn a living on investment properties.

The Emergency Fund

An emergency fund is part of your household budget. You set aside a small portion of your monthly income to a separate account used solely for financial emergencies. This way, when your car or home needs a repair, you’re not drawing funds from your checking account that has already been allocated for bills. Your bills remain current and the emergency is a non-event.

Make Wise Decisions

In the past, if you had extra money in your checking account, you went out shopping. A budget changes your thoughts, allowing you to make better decisions. You know what you need to pay out, even the expenses that come due semi-annually and annually. Now, when you have a few extra dollars, you think about the purchases prior to making them and look to get the best price possible. You have goals and a new awareness regarding your money.

A household budget isn’t something that deprives you of living. It provides quite the opposite outcome. You become aware, organized, and focused regarding your money.

A New Stimulus Is on the Horizon — Making The Most of Financial Relief

Posted on March 21, 2021 - 1:56 pm by Justin Weinger

It’s a new year and a new proposal is well underway for a third stimulus check to struggling Americans. While the economy is showing signs of a slow recovery, millions of Americans remain unemployed. If approved, the stimulus check will provide necessary financial relief to those who need it the most.

Reeling Effects of the Lockdown

This past year many small businesses were forced to close their doors putting millions of Americans out of work without notice. The small mom-and-pop shops in every town across the nation as well as the entertainment and hospitality industry took the hardest blow. With vaccines now available, there’s new hope that the pandemic will soon end and life will return to normal. However, it will take time to recover from a sizable loss.

The sudden loss of income put many families in jeopardy of losing everything. Hanging on by a thread, they learned how to do without. Unfortunately, the mortgage or rent and overhead bills still require payment. Thankfully, the previous and current administration put measures in place to protect suffering families from eviction or foreclosure through the end of March.

Digging Out from Under

Living on a reduced income caused many hard-working families to rely on their credit cards as an additional source of income. Unfortunately, it’s only a matter of time before the credit cards reach their maximum available credit.

Nearly a year removed from the initial lockdown, many people now have large sums of credit card debt. With another stimulus check showing promise for approval, many people plan to use the money to help pay down their credit card debt. A more effective, long-lasting approach is to reduce debt with a debt consolidation loan. The right finance company will help roll your debt into an affordable payment that is easier to pay.

Another option to dig yourself out of this vicious cycle is to use your tax refunds. A professional tax prep service can help you get the highest return possible. Whether you acquire a few hundred or several thousand dollars, you can use this to pay down debts, get caught up on bills, and boost your savings. Then, you can use your stimulus check for something more advantageous.

Avoid Radical Decisions

In an effort to alleviate a deficit created by the pandemic, some people are opting to take money from their retirement fund. If vested, you can borrow a percentage of money from your 401(k) and pay back the loan each pay period. Borrowing from your retirement puts your financial future at risk, though.

Others, see the stock market starting to slow or sustain losses and are considering pulling their money. These funds are in place to provide wealth in retirement. Before making a decision, weigh the pros and cons carefully.

A Bright Outlook for the Future

COVID-19 will fade and life will return to normal. Getting your finances in order now will ensure a speedy recovery. Thankfully, there are things you can do to improve your current financial status.

Cutting back on unnecessary expenses like take-out will free up money you can then use to pay down debt. Cable television and cell service are two monthly bills often with room for improvement. For the short-term contact your service provider and opt for the lowest fees possible. Insurance is another area where people tend to overpay.

Combining your homeowners or renters insurance and your auto insurance with the same agent will provide additional savings sometimes as much as 20%.

Saving Money

There are some financial lessons learned from the pandemic. Life happens and unfortunately without a savings account in place you stand to lose everything. Create a household budget and allocate money to an emergency fund. While the amounts can vary, most people have money to cover three to six months’ worth of bills and daily expenses. Make small weekly deposits until you have a sizable safety net. This will prevent financial ruin in the event of a short-term income interruption.

The pandemic took the country by surprise. As a result, many families suffered large financial setbacks. The good news is with several vaccines currently available and working their way through the population, a return to normal life looks promising. Hopes for a third stimulus check will provide needed money for many families to buy food and essentials. However, being financially responsible by adopting new habits regarding your money will allow you to remain afloat and experience a bright financial future.

How Old Dominion Associates Can Help End the Paycheck to Paycheck Lifestyle

Posted on January 7, 2021 - 8:52 am by Justin Weinger

Living paycheck to paycheck can cost you dearly. You’re always scrambling to come up with the money to pay a bill that’s due. It can prevent you from living life stress-free and have a negative impact on your health. The good news is you don’t have to live this way. Learning how to manage your money will put you in control of your finances.

Getting On Even Ground

The paycheck to paycheck way of life often leads to missed or late payments. This results in added fees that you can ill afford. Therefore, it’s critical to achieving and sustaining a bright financial future, that you reduce your debt and bring bills current. A good place to start is to consolidate credit card debt. Companies like Old Dominion Associates provide consolidation loans to help you reduce your monthly expenses, lower interest rates, and make a single payment.

Prepared for an Emergency

Life often throws in a few surprises that require money to fix. This may be a home or an auto repair or a reduction in hours on the job. In order to avoid falling further behind in your bills, you need to have money set aside for these times. Start small and increase your deposits as you free up money from other sources.

Control Spending

Many people find themselves trapped in the paycheck to paycheck lifestyle because of poor money management. In order to remove yourself from this way of life, you need to control spending. There are wants and needs, and the needs also come in front of buying things you want. Until your finances come under control, it’s essential to refrain from making purchases you cannot afford.

Use Cash Only

Relying on credit cards to make daily purchases will only rack up enormous amounts of debt. In order to achieve financial success, you need to live within your means. If you can’t pay using cash, don’t buy it.

Increasing Your Income

If you don’t bring in enough to cover your monthly expenses, you might take on a part-time job. You can deliver food and essentials, work for Lyft or Uber, or babysit or pet sit in your local area. If you prefer to remain at home, freelance writing, tutoring, and customer service are a few jobs available online.

Sticking to a Budget

A household budget will help you remain in control of your money. It identifies where it goes and what you spend it on. A budget also gives an awareness of wasteful spending, allowing you to cut back. With a budget there are no forgotten bills, it accounts for everything. It also lets you know what money is yours. This lets you set personal goals to reduce debt and lower costs across the board.

A Temporary Sacrifice

To end the paycheck-to-paycheck way of life you will need to sacrifice extra spending for the short-term. It’s a small price to pay for achieving a stress-free lifestyle. Cutting out all unnecessary spending and accounting for every dollar spent is a fantastic way to live a comfortable life.

Dissolving Bad Habits

In order to enjoy the new lifestyle, you need to part ways with bad money habits. You want to manage money responsibly. Instead of spending money without thought, plan purchases. If there’s something you desire and it’s out of your price range, save up for it. Budgeting makes it easy to have nice things, in time. Haste makes for waste and buying impulsively will undo your hard work.

Include Retirement

Part of your budget should include money put aside for your retirement. You may think that you’re young and have many years to secure funds. While this is true, it’s also true that you won’t receive a paycheck after you retire, so the more you invest now, the quality of life you secure in retirement.

You can end your paycheck to paycheck way of life by making smart decisions regarding your money.

Credit Cards: 6 Tips to Help You Avoid Getting In Over Your Head

Posted on December 6, 2020 - 1:38 pm by Justin Weinger

Credit card debt, and other forms of debt, can make it hard to make big financial changes in your life. Once you’re on the hook, you are working just to pay these debts off. The following are a few tips that should help you avoid getting into credit card debt.

Figure Out Your Budget as Soon as Possible

Yes, the easiest way to avoid credit card debt is to avoid getting a card, but that isn’t always an option. If you have to get one, such as a Visa Platinum Credit Card, don’t make the mistake of thinking the money on your credit card is just extra money you can spend frivolously. You need to make sure you create a budget you can deal with, and your credit card should be included in that plan. If you look at your card in this way, it’ll be easier to pay it off, which is incredibly important if you want to avoid going into debt.

Don’t Overlook the Importance of Paying

It’s important to pay on time. Late payments come with additional fees, and you don’t want to give these credit companies any more money than you are already giving them. Remember, there’s usually an APR to consider. If you see an opportunity to pay off a credit card, then make sure you take it. The sooner you can stop paying on this card, the easier life will be for you.

Dealing With Emergencies Differently

One big reason folks get a credit card is to deal with emergencies. This does make sense, but the truth is you don’t always have to turn to credit cards. If you’re trying to stay away from credit cards, then you could turn to installment loans. Of course, you still have to pay the loans off on time, but at least you won’t be resorting to credit cards. Like any other loan, make sure you read the fine print so that you know what to expect.

Learn the Difference Between Wants and Needs

Some folks get into credit card debt because they don’t know the difference between a want and a need. You need to make sure you know the difference so that you can control your spending more effectively. Start a list of the two and think about what you need to live and what you just want. For example, those new shoes you want may not be a necessity if you’ve got a good pair already. That stop at an ice cream shop is just for pleasure, and you know that’s not a necessity. This doesn’t mean you should exclude all nice things in life; just be aware of what’s important. The sooner you can cut wants, the better you’ll be at avoiding debt.

Avoid Taking Out Cash Advances

Cash advances are there for emergencies, but you’ll want to stay away from them if you can. These come with all sorts of hidden fees. You don’t want to deal with this when you don’t have to. It’s easy to get tempted to use this feature. Your credit card is accepted nearly everywhere, so getting some cash seems easy, but if it’s not an emergency, it’ll be better to wait this out. If it is an emergency, then you’ve got alternatives like the ones mentioned earlier.

Get Friends or Family Members to Help

Some folks think they can’t handle having a credit card or think they are just too impulsive. One thing you could do is talk to friends or family members and ask these folks to help you. You’ll be accountable to your friends or family members. You can return the favor if they want. Having someone there to prevent you from making a financial mistake is powerful. Those who prefer to keep this to themselves could just reach out to a professional financial planner. These folks can help you stay free from debt and may even help you create new streams of income.

These are just some things you can do to stay away from this kind of debt, but there’s so much more to consider, like making sure you read the fine print before opening up a new credit card line. If you want any more suggestions, your financial planner could help.

Here’s Why Financial Problems End Marriages, and How You Can Stop Them from Ending Yours

Posted on November 19, 2020 - 4:06 pm by Justin Weinger

Marriages are fragile arrangements. It is well known that marriages end in divorce about half the time. There has been a lot of scholarly debate on the exact percentage and whether the number is increasing or decreasing. But after all the debate is over and a given expert has to nail their colors to the mast, they agree that the rate is about 42 – 45 percent for divorce. That does not include legal separations. When those are taken into account, then the percentage is still roughly half. No matter how you count it, that’s not good.

We know that marriages are fragile, but why? The biggest reason is human nature. Look at any top-10 list you can find and you will notice that most of them list infidelity at the top. Financial challenge is always on the list. And it is usually pretty high. Like everything else, you can learn a lot about marriage by following the money. There are good reasons why money problems crash marriages. Here are a few:

Lopsided Control

In many marriages, women feel left out of financial decisions, and do not have equal access to the funds. These marriages often feature a single bank account and a single person designated as head of the house. That person can spend money as they see fit while the other person has to get permission to spend. This lopsided control of finances often leads to, or stems from, other fault lines in the marriage.

One solution is for both parties to have their own bank accounts. You can easily open a credit union savings account and build up a safety net. When it comes to something as important as marriage, everyone needs to have a say. No one in the marriage should have to beg for money to buy groceries, or clothes, or other needful things. Everyone needs spending money from time to time. There will always be conflict if only one party has the right to unquestioned spending money.

Unilateral financial decisions adversely affect relationships because they feel inherently unfair. If only one person earned the household income, that can exacerbate the problem. The other person may not work outside of the home. But they might well do the bulk of managing the home and parenting the children and providing the other person the support they need to pursue their career. At least when it comes to finances, successful marriages tend to be equal partnerships.

Marrying Too Young

Some believe the divorce rate is decreasing. There are some hopeful signs that this is true. But the jury is still out. If it is, one reason is that people are marrying later in life and deferring children until later in life. When you marry can be an indicator of how durable your marriage will be.

Typically, a couple has less money when they are 18 than they will when they are 28. They will also have more education. A key predictor to the durability of a marriage is one’s level of education. A higher financial IQ can also make a big difference. But when one marries too young, they don’t have time to finish college and get established in a career. They often have children before other life-goals are achieved. That responsibility often holds them back from completing the preparation for a solid financial foundation.

Debt Destroys Dreams

One of the reasons marriage is so exciting is because of the hopes and dreams and endless possibilities. Unfortunately, the possibilities aren’t really endless and the dreams are just fantasies without the money to make them happen. If even just one of the partners enters the marriage with a mountain of debt, those dreams will be put on hold indefinitely.

Home ownership might be the first dream to fall. Debt can keep you from getting a good loan. If someone does lend you the money, it will be at such a high interest rate, your cash flow problems will just end up being compounded. It is very difficult for hope and possibility to flourish when dreams are ruthlessly dashed.

Marriage is challenging, but worth it when successful.Give your marriage every chance for success by being financial partners, by waiting to reach a suitable level of financial security, and by eliminating the debt before it can destroy your dreams.

5 Reasons Consuming Cannabis is Good for You

Posted on April 9, 2020 - 3:06 pm by Justin Weinger

Marijuana can be used to treat a number of different conditions. It’s not uncommon for people who suffer from PTSD, anxiety, depression, seizures and chronic pain to turn to cannabis as a way to help alleviate their symptoms to get their lives back on track. When it comes to actually using marijuana, people in New York can easily obtain their medical card online. They can do this through the leading telemedicine provider available, providing them with a legal and safe alternative to visiting local healthcare professionals. Once you actually purchase your products from a dispensary, there are a few ways to actually use it. The most common is inhaling the smoke, which can be done by smoking a blunt or using a pipe or bong. If you’re not keen about smoking, you can consume for the same benefits and results. If you’re not keen about smoking, you can consume edibles like THC gummies for the same benefits and results.

You Don’t Have to Get High

The beauty about edibles is that you don’t always have to get high from it. There are different components of the plant itself. The two most widely recognized are CBD and THC. CBD does not produce the “high” feeling that you typically get, since that is specific to the THC in the plant. If you only use CBD, you’ll benefit from the effects of the cannabinoids without the disruptive high feeling that you’d get when smoking it.

There are Plenty of Amazing Recipes Available

While it might still be considered a bit taboo, many people are actually starting to cook with cannabis. There are hundreds of delicious recipes that involve using parts of the leaf. This could involve creating a delectable meal that you and a partner would enjoy, or it could involve baking up some amazing desserts that offer the key benefits of use.

More Potent Effects

When you smoke a blunt or use a bong or pipe, the effects often hit you pretty quickly. Consuming, or eating, is a little bit different. You may not notice anything at first, and a lot of people even wonder if there was enough in their recipe to begin with. However, while it might take longer for the effects to hit you, they are more potent when you actually feel them. This can benefit people who are trying to get the most out of it and are looking for a more powerful dosage.

High in Minerals and Vitamins

Cannabis is a natural plant that, like many other plants, contains high levels of vitamins, minerals and antioxidants. Some of the minerals include vitamins K and C as well as iron, folate and calcium. It’s also very high in fiber, so you may find that it helps to regulate a variety of intestinal problems that you might be dealing with currently. The leaves are chock full of antioxidants, which are helpful in fighting against free radicals that are around you every day.

It’s Healthier Than Smoking It

While many people enjoy smoking marijuana, it can have similar effects to the lungs as smoking a cigarette. A lot of this has to do with the rolling papers and the smoke itself, as these can both cause damage to the lungs over a long period of time. Eating and consuming the without smoking it won’t have the same effect on the lungs, so it’s a healthier alternative for people who are using it.

How To Protect Your Finances During and After Economic Crisis

Posted on March 19, 2020 - 9:42 am by Justin Weinger

As COVID-19 cases in the United States and around the world increase by the day, people are scrambling. Businesses are closing, schools are shutting their doors, and grocery stores are struggling to keep up with demand. This isn’t the first economic crisis these generations have seen (remember 2008?), though, and it probably won’t be the last. For many, the last crisis is a distant memory, and this one will be someday as well. While things may be tighter, protecting your financial health will ensure they don’t stay that way forever and that life can get back to normal for you as soon as possible.

Familiarize Yourself With Mobile Banking

If you’re someone who has always preferred to go into your bank to cash checks or conduct other business, now is the time to familiarize yourself with mobile banking. Chances are your bank has both a website and mobile app available for you to use. They’ll allow you to schedule bill payments, check balances, and even cash checks without needing to set foot inside a branch. If you have credit cards through multiple banks, familiarize yourself with the mobile options for each one. This will allow you to monitor balances and transactions more thoroughly, which means you will be less likely to overlook any unexpected or fraudulent charges.

Make Payments on Time if You Can

With people working from home, having their hours cut, or being laid off altogether, it’s to be expected that many won’t be making their bill payments on time. However, if you can afford to use some of your savings to pay bills, you should. This ensures you maintain your good credit score (or keep helping it rise) regardless of the situation. Even if your creditors are providing extra time, pay the bills as you have the money available. If you wait to pay them just because you can, you could find yourself in an even bigger financial jam down the road, since you’ll have a month or two of past payments to catch up on in addition to the current ones.

Contact Your Creditors

Across the country, many utility companies, internet providers, and cell phone companies are already offering extensions on bills and refusing to disconnect service for the duration of the outbreak. However, mortgage companies, landlords, and credit card providers haven’t been so quick to follow suit. Beyond that, many people will still need a few weeks to get their finances back to normal after taking time off. This means that you should contact your creditors now to come up with solutions. When you talk to your landlord or mortgage provider, they may have options to help you prevent eviction. Many credit card companies offer forbearance, which allows you to take time to get back on your feet when you can’t make minimum payments. Each company’s guidelines for forbearance are different, but typically allow for up to six months of no payments and may even work to get you a lower interest rate.

Think Hard About Promotional Financing Options

If you are short on cash but don’t already have a credit card you can use, you may be considering getting one to help you through the downtime the coronavirus outbreak is causing. Promotional financing options are especially tempting during a time like this, but be sure you have a plan to pay them off before you sign up for one. An introductory offer of 0% APR may seem amazing, but it’s only truly great if you pay off the bill before the introductory period is over. If you know you can only afford $50 a month and that your interest rate will go up after 12 months, you won’t want to put more than $600 on the credit card. Additionally, after the introductory period, your APR could jump quite high and make your payments much more than you budgeted for. For this reason, any card you get during a financial crisis should truly only be used for emergencies.

Keep Your Investments

When you see stocks plummeting, it can be tempting to sell everything you have. Even people who don’t own stocks often see a dip in the value of their retirement accounts during widespread financial crises. While it’s true that watching your numbers go down is stressful, it isn’t necessarily the end of the world and definitely doesn’t mean you should sell right away. This is especially true if you plan to use the value of your stocks for retirement and won’t need them for years yet. Remember, the crisis won’t last forever, and eventually, stocks will begin to climb again. People who buy stocks hope to do so at a low price and sell at a high one. When you sell yours because of a large drop in their value, you’re losing money. As long as your current financial needs are taken care of, keeping your investments where they are is the best option for your long-term financial health.

Monitor Your Credit Report

Even if you don’t expect to have any financial hardships during the COVID-19 outbreak, it is important to keep close track of your credit score (you should be doing that anyway). Unfortunately, some unscrupulous individuals take advantage of crisis situations to prey on people who are too busy worrying about other problems to notice if something seems off in their financial reports. Keeping a close eye on your report will help you notice issues right away. In addition to receiving free reports through TransUnion, Equifax, and Experian, you can search Google with a term such as “get my credit score” and use other monitoring programs. There are even programs available that will pay you cash to boost your score. Credit Sesame has been an industry leader for years and helped millions with their credit. Now, they offer Sesame Cash for consumers who want to improve their credit.

When COVID-19 hit Wuhan, China in December, nobody quite knew what to expect. Everyday citizens certainly couldn’t have predicted that jobs, businesses, schools, and even government buildings would shut down in an attempt to keep people healthy. The best thing you can do for yourself in today’s reality is to listen to health and government officials to keep you and your family healthy, pay what bills you can, and make plans for those you cannot in an effort to maintain your credit score as best you can. Remember, life has ups and downs, and life will get back to normal before you know it!

Tips on How to Get Funding for Your Business Quickly

Posted on January 25, 2020 - 9:02 am by Justin Weinger

There are millions of budding entrepreneurs out there who have failed to launch their new business ideas due to a lack of capital. While it’s not easy to get capital for launching a startup, there are several ways you can quickly raise capital and get started. Here are five clever ways of getting funding for your business.

Bootstrap the Business

Upcoming entrepreneurs in sectors such as technology that don’t require a lot of capital to launch or expand are easier to fund. You don’t need a lot of money to start the business and grow, as is the case with companies in demanding sectors such as transportation and manufacturing.

For example, rather than wasting a lot of time looking for an investor to help you launch your mobile app, consider getting a 0% APR business credit card that allows you to borrow money that you can repay at zero or low-interest rates. This is one of the best ways to bootstrap your business idea, especially if you don’t have enough savings. Furthermore, investing your own money could encourage potential investors and lenders to consider giving you more money for expansion.

Try Crowdfunding Campaigns

If you have the right product, all you need is to properly pitch the product idea to the masses and start your crowdfunding campaign. There are several crowdfunding success stories online that describe how entrepreneurs built multinational organizations from scratch.

A great example is the expansion of Formlabs that managed to raise $3 million to scale its operations and manufacture affordable 3D printers in 2013. When venture capitalists started noticing the company’s potential, the 3D printer maker’s investments closed at $19 million.

This means that you can easily connect with like-minded individuals through crowdfunding and quickly expand your business beyond your initial goals. You need to tweak your product and research extensively to understand what resonates with a specific market segment before you craft a pitch and launch the campaign.

Consider Venture Capitalists

Working with an experienced venture capitalist (VC) who knows the effective tactics of scaling a team and understands various founder dynamics can be a good idea. Apart from funding your business, Mark Stevens, an established venture capitalist with 30 years of experience, will bring a lot of valuable industry knowledge to your venture.

VCs may develop an interest in several companies every year but only invest their time and money in a handful. A VC will likely need to have a say in the management of your startup’s day-to-day operations. That is why they only invest in mature businesses with proven and scalable products. While applying for an investment from a venture capitalist may seem challenging, if you’re organized and focused, you can also achieve what other successful startups have.

Talk to Investors

An accredited individual with a net worth of more than $1 million can help you get your business idea off the ground. You can contact several angel investors who have formed a fund or contact an established investor who works alone. Before you approach an angel investor, you need to have a sound business plan and craft a convincing, believable pitch.

Use promising data points that clearly define the current status of your startup and its future potential. Take advantage of helpful resources such as Funding Post and Angel Capital Association to find accredited angel investors.

Apply for A Loan

Getting a business loan or talking to reliable lenders is another practical but traditional way of getting funding for your business. Lines of credit, business loans, and credit cards are popular methods of raising sufficient capital to support a profitable business.

There are several financial institutions and banks across the country that offer term loans and small business administration loans to entrepreneurs. Some of the most crucial requirements you must meet in order to get approved for loan include:

Have a good credit score of more than 640.
Own a business that has been operating for over two years.
Register substantial annual revenue of over $100,000.

While these may not be standard rules for all lenders, you should at least make sure your financial portfolio is strong and clean enough before you start applying for term loans. In case you fail to qualify for loans with good APR, you can consider more lenient business loan options to help expand your small business. To learn about top rated business lenders that can help fund your business quickly, visit Working Capital, LLC. For instance, if your financial portfolio has some outstanding invoices, consider raising capital through invoice financing.

Alternatively, you can opt for equipment financing if you need equipment such as tech devices, heavy machinery, or office furniture. Before you send out any business loan applications, ensure that all your loan documents are in order. For example, you may be required to include your bank statements, balance sheets, profit, and loss statements in the application.

Money can hold back your business from starting or expanding. Since there are numerous ways of raising capital for a business project, you shouldn’t be discouraged if one of the strategies don’t work out. Be persistent, resourceful, and demonstrate due diligence as you pursue each of the methods above.

Tips for Earning Extra Money

Posted on January 18, 2020 - 6:21 pm by Justin Weinger

Whether you are trying to pay off debts, save up for something specific, or just want to have more disposable income, there may be points in your life when you need to earn extra money. You could get a second part-time job, but these can be hard to come by and time-consuming. You might have trouble fitting them around your regular job or other obligations. However, there are plenty of other options depending on your skills and interests.

Spend Less Each Month

It’s not exactly a way to earn more money, but it has the same outcome. You may be able to pay yourself by taking a longer time to pay back your student loans. This would mean lowering your monthly payment into a new loan while saving more in the long run in interest than your current loan or loans. However, assuming that your income will increase over the years, you may be able to pay off the loans much sooner even if you take this option by making additional payments.

Sell Items You Own or Make

From books to clothes to furniture to movies and more, there are many opportunities to sell items you no longer have any use for. Depending on how much time you have and your comfort levels, you might want to sell online, at a yard sale or on consignment in a shop. You might think that you have nothing of value, but take a look online and offline. You’d be surprised what people will pay for.

Have you always enjoyed knitting, woodworking, painting or even growing vegetables? You might be able to sell your creations. Be sure to take both the cost of materials and labor into account when you set your prices. There are places online specifically set up to sell handmade things, but you might also look into local markets, shops and craft fairs.

Try Out the Gig Economy

If you have a knack for teaching or organizing, you could get work as an online tutor or virtual assistant. There are opportunities online for writers and editors and for just about any other kind of skill as well. Even if you think of yourself as not possessing unique special skills, you might be surprised at what some will pay you to do, from putting together ready-to-assemble furniture to doing yard work to running errands and more. If you own a vehicle, there are various driving and delivery opportunities. An advantage of the gig economy is that it doesn’t require the commitment of a full-time job, so you can pick up extra money when you need it and focus on other things when you are too busy.

Explore the World of Cryptocurrency

You may want to look into investing in cryptocurrency. Cryptocurrency has become much more mainstream in recent years, and you can make an investment without spending hours of your time mining. You do need to do your research, and that starts with finding a reputable exchange. You should also make sure that you keep careful records of where your investment is stored and how to access it.

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