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Personal Finance From a Biblical Perspective

4 Tips To Selling Your Annuities

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[The following is a guest post giving 4 important tips to selling your annuities.]

Selling your annuities can be a very tricky affair considering the fact that it is one of the most complex financial products to understand in today’s age.

It is a Herculean task for an inexperienced man to understand the pros and cons of annuities. There are a lot of complicated permutations and combinations which are involved, and more often than not, the complexity can make it difficult to know if it’s the right time to sell the annuities.

Convincing someone to buy your annuity is not an easy task. Because of this, here are a few tips to aid you in the selling of your annuities.

4 Tips To Selling Your Annuities

Selling Annuities

Have A Clear Understanding Of The Entire Process

It’s important to understand the various concepts surrounding an annuity prior to the sale, so that you can be in a position to make a profit. You should know where and how to strike the balance in terms of claiming the right amount of money when you sell your annuity.  In other words, your asking price should be in line with what the market will bear and not too high nor too low.

If you are unsure about how much to charge, then it may be wise to have a financial advisor review your proposition. In addition, there are a bunch of companies that are always willing to buy annuities from an outside source. You can use their services to your advantage.  However, since they deal with a number of transactions, you need to make sure that you are asking for a realistic amount – ideally, the amount should not exceed 85% of the face value.

Be Sure To Conduct Research

Research always comes in handy especially when you are trying to sell entities which can be very complex to comprehend. Before you reach out to any company, be sure to research the types of annuities they purchase, and with whom they normally do business, so that you understand their targets and tactics.

Search around for people who have experience with selling annuities in order to get several different perspectives from those “in the know”.

Play It Safe

Annuities are built upon the concept of risk. Because of this, it is necessary to be extremely cautious, since small mistakes can lead to huge losses. Don’t be in a hurry; rather take steps very slowly and wisely. Explore multiple options until you get the one which will suit you best.

You Don’t Have To Sell It All

Always remember that you do not have to sell your entire annuity all at once. Sometimes, you will be able to find a buyer will be willing to purchase a part of your annuity from you. If you can make enough from a partial sale, that may be the best thing you can do, while you wait for market conditions (or your own knowledge of the market) to improve.

20 Money Saving Tips for Low Income Earners

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[The following is a guest post giving 20 great money saving tips for low-income earners!]

Many people across the country are having a hard time making ends meet at the end of each month. With the price of many goods and services increasing at a faster rate than people’s pay checks, it is easy to see why this has become an overwhelming problem for so many families.

This can be especially true for low income earners, who are already feeling stretched to the limit and have very little resources left after paying just their basic bills.

20 Money Saving Tips for Low Income Earners

The good news is that there are some basic ways that everyone can save money on their day-to-day purchases. Below is a look at the top twenty money saving tips that are perfect for anyone, including low-income earners.

Money Saving Tips

  1. Change to a bank account that does not charge account-keeping fees or requires a minimum balance in their accounts. Some banks also refrain from charging low-income people additional fees like overdraft charges.
  2. Look for ways to save on transport expenses like walking instead of driving, when possible, or using public transportation instead of driving yourself.
  3. See if a couple of co-workers are willing to carpool, so everyone can save on transport costs.
  4. Eliminate your Pay TV services and use Free-to-Air TV instead.
  5. Instead of stopping at the coffee shop for coffee on your way to work, make your coffee at home and take it with you or wait until you get to work.
  6. Instead of heading out to the movie theater where tickets are fairly expenses rent a movie or watch a free movie at home.
  7. Never run the washing machine or dishwater unless you have a full load to help reduce your water bill.
  8. If you have a cell phone plan already, you may be able to eliminate your home phone, or consider running your phone through your internet service at a reduced rate.
  9. Shop for sales items at the grocery store and purchase items in bulk, to get the cheaper per unit price.
  10. Rent books and movies at your local library instead of purchasing them at the store. They usually have a wide selection to choose from.
  11. Limit the number of times you eat out each month and choose to eat at home instead. When you do eat out, be sure to ask for water instead of more expensive drinks, and skip dessert at the end of your meal.
  12. Consider making homemade gifts or offer to provide a service, such as dog walking, instead of going out and purchasing a gift.
  13. Lower your energy bills, by turning down your thermostat when you are not home, turning off your air conditioner when you go to work, turning off your lights and TV when you are not in the room, and unplugging your appliances at the outlet when not in use.
  14. See if you can group all of your insurances into one package to get a reduced rate on all of them.
  15. Sell and buy items at a local consignment shop or thrift store when buying clothes, household furnishings and miscellaneous goods.
  16. Contact your utility companies and ask about bill smoothing to keep your bills consistent and budget better.
  17. Check your bank statement each month and make sure that no additional charges are added on. If you do have additional charge find out why and if they can be eliminated.
  18. Instead of going to the gym, start a walking club with some of your friends, or purchase inexpensive fitness videos that you can do at home.
  19. Purchase generic-named medications, cleaners and groceries instead of the more expensive brand-named products.
  20. Trade services with someone else. For example, maybe you can babysit a friend’s children in exchange for a manicure or haircut.

Combined these twenty money savings tips can help you spend less on the everyday items you purchase, so you have more money available. While not all of the tips may be applicable to you, just doing five or ten of them on a regular basis can help you save a lot of money over the course of just a few weeks.  You should always be on the lookout for ways to save money, no matter how much you earn.

Be On The Lookout For These Senior-Targeting Scams

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Unfortunately, there are many different kinds of scammers around trying to take people’s money, and seniors are often their main target. Scammers tend to target seniors because many of them have access to larger sums of money, and they think they can trick them into providing them with their personal information.

In addition, seniors tend to not be as techno-savvy as the younger generation, which make the Internet a hotbed for scammers. Below is some useful information about the types of scams that target seniors, as well as, some useful tips on how to avoid these scams.

Internet Scam

Types of Scams

Scammers try all different means to try to steal information from seniors or to get them to agree to make a fraudulent purchase. While there are literally dozens of different scams out there, below we look at the most common types of scams that target seniors.

  • Carbon Tax Compensation. These scammers contact seniors by telephone and pretend to be calling from the Australian government. They offer several carbon tax initiatives and benefit options to the senior, claiming all they need is their bank account information. If you get a call like this, you can be 100 per cent certain that it is a scam because the government never calls people in reference to the carbon tax credit. People must apply for these carbon tax savings on their own.
  • Charity Scams. One of the most popular scams involves contacting seniors to donate to a bogus charity. Before donating to any charity, check with the consumer protection agency in your local area to ensure the organization is legitimate.
  • Investment Scams. These get-rich-quick schemes should always raise a red flag for seniors. Be leery of anything that sounds too good to be true. Nobody should be providing you with investment advice unless they are licensed. You can check the standing of anyone offering financial or investment services by checking the ASIC Connect’s Professional Register.
  • Lottery Scams. A popular scam targeting seniors is an email claiming that you won the lottery. This scam asks you to provide your bank information to deposit the funds into. This is almost always a trap to obtain your personal information. If you think it may be legitimate, you should first seek advice from a legal or financial expert.
  • Money Transfer Scams. Money transfer scams request that you transfer a large sum of money to the other person and then they promise to return more money to you. This is a scam and you should never transfer money to someone you do not know.
  • Superannuation Scams. This is another popular scam that target seniors, as the scammer promise to transfer your money to a self-managed account. This kind of accounts could have high account-keeping fees and cause you to face tax penalties or a higher tax rate.

How to Protect Yourself Against Scams

There are several step you can take to protect yourself against these scammers and secure your personal information.

  • Stop Telemarketers. You want to make sure you have your number placed on the Do Not Call Register. This will reduce the number of telemarketers calling your phone and reduce the risk of being scammed.
  • Do Not Give Information. Another thing to remember is that you should never give your personal information, including banking information to anyone over the phone. Remember that your bank will never ask for this information over the phone. Anyone asking for this type of information could be trying to scam you.
  • Verify Legitimacy. Always take the necessary steps to verify the legitimacy of any charity your donate to or business you work with. 
  • Seek Professional Advice. When in doubt, you should always seek advice from an attorney or a financial counselor. They will be able to help you determine what options or legitimate and which are fraudulent..

The governmental website SCAMwatch provides useful information on how to protect yourself from scammers. You should always question any deals offer over the phone, through the mail or by an email unless you requested the information.

Ask a lot of questions, do your research and find out the name, phone number, and address of any business or organization your work with.

photo credit: Freedigitalphotos.net


How To Pay All Your Bills On A Low Income

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[The following is a guest post, offering tips/advice on being able to pay your bills even when on a low income.]

If you are a low-income earner, you may be struggling to make ends meet as everyday living costs continue to rise. It may feel like you do not have enough money coming in to help pay for all your bills each month. This can leave you stressed and feeling like you will never overcome your debt.

The good news is that no matter how much money you earn, there are effective steps you can take to get control of your finances and cover all of your expenses. Below is a look at some basic steps you can follow to track you money and pay all of your bills each month.

How To Pay All Your Bills On A Low Income

Low Income Debt

Track Spending

The first step to taking control of your finances is to start tracking where you are spending your money. Keep receipts or utilize online banking transaction summaries to review how you are spending your money.

Determine how much money you are spending in different categories, such as food, housing, utilities, transport, entertainment and miscellaneous each week. You may be surprise at where you are spending your money. This can then be put into a budget.

Set-Up a Budget

Using the information from above, creating a household budget based on your current spending habits. Look over this budget carefully, and determine in what areas you can cut back and spend less money. Now create a new budget using this new information and amounts.

Be sure to create a realistic budget that you will be able to stick to in the upcoming months. Creating an impractical budget may look good on paper, but will be impossible to keep. A poorly created budget can easily fail, resulting back to old spending habits and further financial issues.

Get Your Benefits

If you find after creating a budget that you do not have enough money coming in to cover all of your expenses, it is a sign that you may need additional financial support. Visit the gov.uk website and see if you and your family qualify for income support or other benefits.

These benefits are designed to help low-income earner offset some of the household expenses, so do not be afraid or ashamed to use these services. This may be just the extra amount of support you need to pay all your bills at the end of the month.

Have a No Debt Policy

Obtaining a loan, may seem like the solution to all of your financial problems, but if you are already having a hard time paying your bills an additional loan will only increase this problem. Make a commitment to establish a no debt policy and instead look for alternatives to borrowing money.

You should start by talking to your lenders and try to make payment arrangements, maybe securing an additional part-time job, or seeking help from a local charity or church.

Start Saving

Once you get control of your budget and start keeping track of how you are spending your money, you will be able to start setting a little bit of savings aside each month. Even if you can only save a little bit out of each pay check, it will start to add up over time. This will give you a safety net if an unexpected expense occurs or you have a loss of wages due to an illness, injury or loss of job.

These tips will help you be more accountable to your spending habits and help you set the necessary funds aside to pay your bills. You may also be alerted to the fact that you need to seek out some financial support because you do not have enough income coming in to pay all your bills. Together these steps will help you get your finances back on track, pay all of your bills, and hopefully start a savings account to protect your future.

Be Wary of Short-Term Loans

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[The following is a guest post about the dangers of short-term loans.]

If you are facing a financial crisis, a payday loan may seem like the perfect solution to your problem. They usually offer to provide you with instant cash that may be in your bank account in just a matter of hours. They also promote the fact that they will lend to anyone with a steady job, even if you have no credit, or poor credit.

While this may seem like the answer to your financial problems, there are some things you should know about payday loans before making your final decision. Otherwise, what may seem like the perfect solution, may only add to your financial problems.

Payday Loans

How Short-term/Payday Loans Work

A payday loan company is likely to offer you a loan of up to $2,000 that you can spend on anything you want to. Through this loan contract, you agree to make regular payments to the lender until your loan is paid in full. They will attach various fees to your loan that you must also pay back in full. The application process is very easy and these companies do not do any type of credit check to see if you qualify for approval. As long as you have a steady income, you will probably be approved.

You may ask yourself why payday loan companies offer loans to people with little or poor credit when other lenders will not. This is because they set up an agreement with you where they are practically guaranteed to get their money back. This is because you agree to allow the payday loan company to withdraw the fund directly from your regular pay check or your bank account. These funds will then be directly forwarded to the payday loan company.

Repayments

It is very important that you realize the when you agree to a payday loan, you are authorizing the company to take funds directly from your pay check or bank account to cover your debt. Once you make the agreement, these payments will be automatic and there will be nothing you can do to stop the payments. This means that you will have fewer funds available to you every week until the loan is paid off.

If you are having the money directly deducted from your bank account and you do not have sufficient funds available, you are likely to receive an additional fee from your bank.

Added Fees

While the government has set some strict guidelines in place for payday loans, you will still repay a substantial amount more than you initially borrowed. Right from the start you will be charged a 20% establishment fee just for taking the loan out.  If you are taking out a $2,000 loan, the establishment fee would be $400. You will also pay a 4% monthly account fee on the balance you still owe. This will add up to a lot of extra charges.

For example, if you obtain a loan for $2,000 and plan to repay the loan over 16 biweekly installments, you will owe $190 every two weeks. This will equate to a total repayment of $3.040.00, which means you will be paying more than $1,000 more on a $2,000 loan. This does not even include late fees if you are ever late with one or more payment.

Alternatives To Expensive Short-term Loans

There are several alternatives to payday loans that you may want to consider. You definitely want to contact your lenders first and see if you can make alternative payment arrangements with them, so you do not have to take out a loan. You may also be able to borrow a small amount from a friend or family member and pay it back over a set period of time.

There are also some other loan alternatives, such as a standard bank loan or you may be able to obtain a low-interest credit card that you can use for some of your expenses. If you are low-income you may be eligible for specialty or Centrelink loans from bank and charity partnerships, such as the StepUp Loan and the No Interest Loans Scheme. If you receive payments from Centrelink, you may be eligible for an advance payment to help offset some of your current bills.

While taking out a payday loan may seem like a good idea initially, keep in mind how much you will need to repay in added fees. If you are not careful, this type of loan can actually add more financial stress on you than you currently have. This is because you will have to go with several weeks or months of decreased pay checks to cover all of your other expenses.

If you do obtain a payday loan make sure you read the contract through completely and that you are certain you will have the ability to repay the loan.

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