Money Wise Blog

Almost every state has some type of mandatory law regarding auto insurance coverage.  It is important that you abide by the law and stay covered.  However, that does not mean that you should pay too much for insurance.

To get the best auto insurance rates you need to understand how your rates are figured.  Each company may use slightly different ways of figuring rates, but generally they will use the same information.

Your driving record will play a big part in your auto insurance rates.  You should, obviously, avoid any traffic tickets and handle all mishaps right away.

Your credit record will also play an important role.  Most companies will base your rate partially on your credit score.

Another thing that will affect your rates is where you live and what type of car you have.  Certain areas may be higher to insure because demographic information is used to figure risk for insuring people in that area.

The combination of factors that go into figuring your insurance can sometimes one things you can influence and if you can do something simple, like fixing a bad credit mark or adding security features to your vehicle, then it is worth it.

Most people understand that a 401K plan is a great investment tool to use to save money and prepare for retirement.  Most employers offer great deals, matching your contributions, to allow you to get the most benefit from your 401K.  There are more tips you can use to help you get the most benefit possible from your 401K.

- Set a goal on how much to save.  This will help you to ensure that you are contributing enough so that when it comes time to retire you will have what you need.

- Do not wait to start contributing.  Do what you can, but do something.  No matter what age you are it is never too early to start contributing.

- Make sure you understand your investments.  It is easy to let the company just choose how to set up your 401K investments, but you really should be involved.  Usually the longer time you have until retirement the more risk you can take which will allow you the opportunity to really make some money on your 401K.

- Always be sure to understand everything about your 401K.  Talk to someone in human resources if you do not understand your 401K.

- Make sure you stay on top of it and watch your investments so you can make changes if needed.

Have a Merry and Blessed Christmas! Remember to keep looking at your wallet during this festive season!

The holiday shopping season is a big time for thieves, especially identity thieves.  People get so wrapped up in getting the best deals that all their common sense about safe shopping goes out the window.  Do not let yourself fall prey to an identity thief.

You should never shop with a company that you do not trust.  This includes buying form individuals, as well.  Always get a receipt and make sure that you pay with a secure method.

Never give a credit card number out.  You should either pay through a shopping cart online or through a cashier where your card is swiped offline.  Also avoid paying with checks as you account number can be taken easily that way.  The best way is to pay with cash, if possible or through an online payment center, like PayPal.

Another great tip for holiday shopping safety is to be sure that you keep an eye on your credit cards and bank accounts.  Be sure when you get December’s statements that you check them over for any problems.  The sooner you catch a problem, the better chance you have of fixing it.

Be smart when you shop.  Do not let a good deal lead to bad decisions.

There are many different college savings plans.  You have probably heard talk of something called a 529 Plan.  A 529 Plan is a tax-advantaged savings plan.  They are sometimes referred to as qualified tuition plans.

529 Plans are sponsored by state agencies and educational institutions.  There are two types, pre paid tuition and college savings.  Not every state sponsors both types, so it is best to check the specifics of your state.

A 529 Plan offers you tax benefits because the money in the plan is not subject to taxes if used for college expenses.  If the money is withdrawn and used for something other than college expenses then it is subject to taxes.

529 Plans do have varying fees and other expenses.  It is important when using a 529 Plan that you understand the details.  Be sure to review everything about your plan before signing up for it.  This general information does not provide specifics that can differ from state to state.

Many times when buying a new car a person will simply trade in their old car.  This is one of the biggest mistakes you can make.  Trade in value is far less than what you would get if you sold your car.  It just makes more sense to try to sell your car instead of just handing it over to a dealer for pennies.

When you decide to sell your old car you should start by trying to make it look as good as possible.  You obviously do not want to put a lot of money into it, but you would be surprised at what a simple car wash and sweeping out can do.

You should also do some research and see what the blue book value of your car is.  Also consider checking out dealerships for similar cars and see what they are asking.  This will give you a good starting price.  You should always price your car higher than what you expect someone to pay.  Let them talk you down so they feel they are getting a deal.

You should find that the profit you make from selling your old car verses what you would get from trading it in is quite huge.  It is well worth your time to sell your own car.

The last part of this holiday savings installment will focus on how to get the gifts you want for less. Shop around and avoid impulse buys when you are gift shopping.  Start your shopping early enough that you will not be forced to buy due to lack of time.

You should always check out prices at different stores.  Also consider looking for coupons or scoping out sales.  You may even want to look online for some amazing sales.

You should take your time when shopping so you can get the best deals.  This will allow you to be able to buy what you want for people and still stay within budget.

For some people on your list you may be able to find a gift that is actually quite cost effective and offers more thought than anything else you could have given them.  I am talking about homemade gifts.  Everything from baked goods to knitted projects can make great gifts.

Not everyone on your list could be given a home made gift, though.  Home made gifts are really for people who will appreciate them.  You also should think about the gift you are giving.  You do not want to only capitalize on the home made aspect – it should also be something that is valuable or usable.

The trick to home made gifts is to make sure that you have enough time to make the gift and make it well.  It is okay for a child to give a home made gift that is a bit sloppy or slapped together, but it is not okay for an adult to do so.  Just make sure that when give home made gifts that they are nice and something that people will be happy to get.

Overspending is a common trend around the holiday season.  It is very easy to completely blow your budget when you are in a giving mood.  However, the spirit of the season shouldn’t leave you scrambling to pay off debt in the new year.

In order to keep your holiday spending in check you must start with a budget.  You should begin by making a list of everyone you need to buy a gift for.  Then you should estimate about how much you can spend overall on gifts.  This will help you to decide about how much you can afford per person.

With a good budget you can then begin thinking about what gift you want to get for each person.  You should also make notes about what type of gift would be good for each person.  For example, you may want to spend more on your mom than on your cousin.

When you decide that the time may be right to get some help with your debt then you need to look into your debt assistance options.  You will find that you have a few different places that you can go to get help with your debt.
The first place many people look is into debt consolidation.  With debt consolidation you have a couple options.  You can get an actual loan to pay off all your debt, thereby consolidating all your debt into one payment or you can go through a debt consolidation company who will consolidate your debt for you.  They negotiate with your lenders to get a payment deal and you pay one monthly payment.

The next option you have is debt counseling.  You talk with a financial expert who will help you to develop a plan to settle your debt.  You go over all your information with the advisor and figure out what will work best for you.

The last option is bankruptcy.  It is ideal to use this as only a last resort when you do not foresee any possible way to get out of debt on your own or through other debt assistance.