Crucial Steps in Saving Money

Since you started working you've enjoyed having an income, but it always seems as if you never have enough to pay or buy what you really want. There's no point in working yourself tired if you can't spend some of the money to have a good time or get what you've always wanted (Trip to Peru, Playstation 4, you name it).
That's why I thought it would be a good idea to make a list for people who are starting out (or need some ideas on saving money) to help them get what they've always wanted.
Buying a car
Fuel is getting expensive by the minute and it has a great influence on your finances. When buying a car you have to think of all the costs involved. Things to look out for are:
• Are the parts for this car expensive when I want to service it and have to buy new ones?
• Is this car fuel efficient and will it save me money in the long run?
• Is this car in such a condition that it will affect my car insurance premium?
Buying instead of renting a home or flat
Currently you're most likely paying a monthly fee for your home. The problem is that money is going into someone else's pocket and not your own. You are losing on an investment potential and you'll most likely start late with it like everyone else. Instead of paying your rent why not get your own home and pay the mortgage, this way you're making an investment and your investment will most likely increase in value.
Pay off your debts
There comes a time in your life when you have to take out a loan to help you financially. Loans are effective, but a word of advice, pay it back as soon as possible. Not just the monthly debit order, but as much as possible, if you pay the settlement fee you'll even be able to pay less since you won't be paying interest on the loan. Squeeze those Dollars, Franks, Euros or Rands and pay it back as soon as possible, otherwise you'll be paying almost double these days of what you loaned.
Open a savings account
Even if you put a small amount of money it will build up to a large amount which might help you out in the long run if you ever need money again. The best kind of savings account is the one where you can't get to your money (32 day release), which will keep you from withdrawing it and help you save.

Article Source: http://EzineArticles.com/7669784

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Top 5 Insurance Mistakes

Many times the only reason that people obtain insurance is because it is required. To obtain a home mortgage, the bank will require you to obtain homeowner's insurance. To drive in the United States, it is required to obtain some type of car insurance. Unfortunately, many see insurance as an unnecessary expense and do not pay much attention to the coverages they are obtaining or not obtaining. Below are 5 common insurance mistakes made by many.
1. Insuring a home for its market value and not the cost to rebuild. If the loan is higher than the cost to rebuild, then the bank will require you to insure the home up to the amount you owe. But if the market dips, like it has in recent years, the cost to rebuild will be higher than what you paid for the home. You need to have the home insured for at least the cost to rebuild or you could be left with a hefty bill to pay if your home burns down.
2. Only obtaining state-minimum liability limits on your car insurance. The state minimums will not sufficiently cover you if are involved in an accident involving significant damage. "I have never been in an accident and I don't plan on ever being in one," is a response I hear often. No one plans on being in an accident, but you cannot predict the future. State minimums will not be sufficient for many accidents.
3. Refusing to buy renter's insurance. I was counted among the many that felt renter's insurance was a waste of money, until I was robbed. Now I understand that renter's insurance provides peace of mind for a very minimal expense.
4. Lacking the understanding of what is covered. Most insureds do not take the time to read through the policies they have just purchased. To make sure you are insured correctly you need to actually read the policy and, if necessary, ask for clarification from your insurance agent.
5. Selecting insurance based on name recognition. Johnson Controls Inc. is a leading manufacturer of automotive interiors for cars and light-trucks and is worth 28 billion dollars, but have you heard of them? Many have not, but does that mean they are not excellent at what they do? Of course not. Just like Johnson Controls, there are many excellent insurance companies that you have not heard of, but that doesn't mean they are not excellent insurance companies. AM Best ratings, online reviews, and personal referrals are all excellent ways of researching an insurance company. I wouldn't recommend choosing an insurance company based on the entertainment value of their commercials.
Insurance protects you from financial ruin, if you are sufficiently covered. Don't make the five common mistakes above and you'll be well on your way to staying ahead of trouble. You may not like paying your insurance bill, but you'll be grateful you are properly covered if something does happen.

Article Source: http://EzineArticles.com/7660595

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