6 Tips to Maximize Your Personal Loan Benefits

Personal loans are types of loans that can be used for any purpose. Its flexibility for the borrower’s use is one of the advantages a personal loan can have. There is no specific expenditure that personal loans must address. So how can we take advantage of personal loans? Here are a few tips on how you can maximize your personal loan.

  1. Always make sure you have a purpose for your personal loan. Understanding your need and your obligation will allow you to plan properly and make sure that you spend for the right things. Personal loans are not there to have extra cash but to help you in managing your finances.
  2. Identify the source of income for amortization payments. This will help you foresee how much you can afford to set aside for amortization payments. When you identify the source of your income, you will have the need to budget your expenses which includes your monthly loan payment.
  3. Avoid overlapping two personal loans. Sometimes, our expenses balloon to such an extent that we end up getting a loan to pay for other debts. Overlapping debts will only give you a harder way of managing your debt and can cause you more problems in the future.
  4. Use forecasting with your finances. Having a good financial management will help you deal with your loan in the most effective way. Forecasting can identify how much you will be spending and how much you will be earning. Know these things to make sure you can somehow predict what will happen during the loan term.
  5. Avoid any fees or charges that may occur. Paying fees for late payments or overdue accounts will result in unwanted cash flow. And if done repeatedly during the life of the loan, you would be spending extra money that could have been saved for something else.
  6. Build a good relationship with your lender. They may have good deals that they may be able to offer you during the life of the loan. These deals can provide you discounts and when maximized can offer you a big amount of savings once the loan has been fully paid for.

5 Practical Budgeting Tips That Really Work

Are you always broke? Or living from paycheck to paycheck? If your answer to any of these two questions is yes, then you are spending more than what you are earning.

To get out from this financial rut, you need to learn how to budget your hard-earned money effectively. Budgeting basically means planning how to spend your money with a purpose. It will help you get out from debt, save for your future, achieve your goals, and have financial freedom.

Here are 5 tips that can help you:

1. Before the next month begins, budget your money to zero

Create a monthly spending plan and give each dollar a name. Your plan should include basic expenditures, savings, and other miscellaneous expenses.

2. Each month is different, be sure to prepare for seasonal expenses

There are months that require you to stretch the budget. It is best to prepare for them by setting aside a specific fund for these expenses: School opening fees, vacation, birthday, holidays and car maintenance. By having a plan, you prevent being stressed when the time comes.

3. Create a schedule, stick to it

When budgeting, schedule specific dates to pay your expenses. Purchase your groceries twice a month or weekly.  For regular bills, set-up auto drafts in your checking account.

4. Give priority to essential expenses first, savings and your basic needs

Pay yourself first. Your foremost expense is your monthly regular savings, followed by the basic needs like shelter, food, utilities, transportation, and clothing. Then, fill up the rest of the categories.

5. Create a buffer in the budget, for unexpected expenses

Add a miscellaneous category in your monthly budget and assign a small amount of cash on it. Use it for unexpected expense that may come up within the month. It prevents you from utilizing the money that you set aside for other categories. Keep track of this extra expenditure and if it happens frequently, add a category solely for its purpose.

Give yourself at least three months to become familiar with your budgeting system. Once it becomes an auto-habit, you will enjoy the benefits of living with financial freedom.

Should You Get a Loan to Study Culinary?

A lot of people dream to run a kitchen or become the chief chef. Over the years, the culinary education has been sought after by a growing number of aspirants. The school enrollment is swelling while the starting wages of chefs are too low. It is hard to know if it is worth to get a loan and study culinary arts.

There are many ways to study the arts of cooking. The average cost of culinary school tuition is as much as three times the fees of a regular four-year course. A two-year degree in culinary or baking and pastry arts can cost up to $66,000.  If you want to extend to a four-year program, it could be as much as $130,000. This is almost the same as the law school degree.

However, unlike those who have careers in law, culinary industry do not offer much salary for a novice or newly grad levels. An entry-line cook can only earn as much as $10.23 an hour. From here, it seems that the high cost is not worth it.

On the other hand, you can attend community colleges and trade schools which have culinary programs. Students who take this route can complete the program and get a job in just a year. You can get a loan to fund your culinary studies and start paying it after a year. As of date, 93% of student who graduated from programs that focused on practical skills are able to get a job in their chosen field.

You don’t need to get buried in a six figures debt to attend a culinary school. It is a responsibility nobody will have fun in fulfilling. Why not get the loan that you need and can realistically pay. Being practical should not start when you already have a job.

What Payday Loan Frauds Should I Carefully Watch Out For

Payday loans are becoming a lucrative business especially in places where the workforce is rising and cities are performing well economically. Payday loans provide and offer short-term cash to borrowers who can use it for medical emergencies, time-sensitive purchases, or even urgent expenses such as household and auto repairs, utilities, etc.

But along with a booming business comes with a bad side. There are people and businesses who take advantage of the booming industry and defraud people for their money. It is a bit challenging to eliminate these fraudsters completely. Knowing and being aware of their scams can help you eliminate the growing modus and keep the legitimate and licensed lenders.

  1. Payday loan Kiting

This payday loan fraud is often done by the borrower against two or several lenders. Because payday loans do not involve credit scoring and review, a lender may simultaneously take on two loans from a different lender. The second loan being higher in amount is then used to pay the first lender where the balance is pocketed by the borrower. The cycle continues until the loan becomes high and the borrower suddenly disappears.

  1. Information theft

One of the payday loans fraud that is rampant nowadays is information theft. A payday lender through online or a representative request prospective borrowers’ information by filling out the application form. From this point, the posing lender uses the acquired information to make other loans from legit banks and financial institution. One great way to deter from this fraudulent activity is making sure that the lender has an existing physical address which you can visit to fill out an application form.

  1. Hidden fees and high interest

Payday loans are quite straightforward and don’t really require any complication in the loan agreement. It is the kind of loan where the i-give-you-money-and-you-pay-next-month type of loan. Of course with added interest rates. But some lenders, especially those who have not accredited overcharge interest rates and apply high fees. This is the reason why borrowers often end up paying too much for a payday loan. Payday loans are effective means of managing your expenditures if you scrutinize the legitimacy of the lender you approach.

Ways to Secure Your Personal Finance If You’re 40

If you are in your 40s without existing savings to secure your old age days, it’s time to buckle up and build your personal finance. Here are some effective ways to do it:

Reduce your major living expenses

At age 40, you are earning more substantially in your chosen career and perhaps spending a lot more because you know you can afford it. Now that you decide to start building your retirement fund, cutting down some of your expenses will give you extra cash.

The first thing to do is to review your monthly budget. Find out where the bulk of your money goes especially the major expenses. See where you can slash some cash for your savings goal. Scale down your cable package. Bring lunch in your office. Instead of watching a movie every week, make it once a month. Downsize your home into a smaller one. Ask yourself if cutting some of these living costs will affect your life positively or negatively. You know the answer.

Invest in your career through advanced learning

Do not stop where you are right now in your company. Grow your income by acquiring advanced studies that will help you secure a higher position in the near future. Work with more motivation and show your boss that you are capable of doing more than your present tasks.

Enroll in related courses, get a Master’s degree, or attend training and seminars. All of these will boost your confidence and enhance your work skills. Above all, it helps you build your personal finance goal.

Get side jobs

One of the best options to get extra cash is to get a side hustle. If you are a good technical or creative writer, write online. You can do it after your regular work hours or during weekends. The internet offers many side jobs opportunities that can augment your income.

This is the perfect time to start taking care of your personal finance. At your 40s, you are still in prime health. Build your nest for retirement right now before it becomes too late!

Personal Finance Mistakes That Ruining Your Marriage

You can marry a rich or poor man, whoever that your heart desires but knowing how to manage your personal finance properly can save your marriage.

Are you tired from arguing with your spouse every damn day? It has been an old problem in a marriage when the couple experiences a financial crisis. If you still don’t know the roots of your arguments, check these factors. You might miss out what’s really ruining your marriage for years already.

Personal Finance Mistake #1 Adopting Traditional Roles When The Budget Won’t Fit In!

For decades, man is believed to be the financer, provider and investor in a family and the woman are bound to stay at home doing household, taking care of the kids and managing bills on time. In our digital age, men and women have to work to make ends meet, thus stereotyping is not applicable to everyone. If you think that hubby’s monthly salary is not enough to support the needs of the family and you are eager to join a corporate office, do not hesitate, this may be the solution you ever need.

Personal Finance Mistake #2 Couples have different money styles

This is not new to every couple, there will be a spender and a saver in the family. Instead of allowing this reason to create commotion between the two of you, use this personal finance mistake into a money strategy.

For instance, if the hubby is the spender, oblige him to save for short-term goals to be used as emergency and funds to unexpected expenses. While as the wife, you have to be responsible in saving money for long-term goals such as down payment for the house and lot you’ve wanted for so many years, retirement plan, and annual family vacations. Knowing which of the personal finance mistakes is the main reason why you keep arguing
with each other can save your marriage as early as now!