Tips For Saving On Care Insurance Rates

Naturally, every driver wants to save money on their car insurance bill. Fortunately, there are many ways to accomplish this. Check out a few helpful tips for someone who is looking to insure a car at the lowest possible rate.

One thing that a person can do to save money is to drive a car with an excellent reputation for safety. Not surprisingly, there are some cars that are less safe than others. Cars go through elaborate tests to see how well they endure in the event of a crash. A person who owns a car with a reputation for being safe will likely pay a lower rate than someone who owns a car without this reputation. Today, a person may be able to purchase a car with a backup camera and other features that contribute to safe driving. Also, people who own older cars often pay higher rates to insure their vehicles. This is because some older cars have fewer safety features such as complete seat belts and airbags. It makes sense in many different ways to invest in a newer vehicle.

Another thing a person can do to insure a car at a low rate of payment is to maintain a clean driving record. A person can drive in a defensive way in order to avoid some accidents. For instance, a driver should come to a complete stop at every four way stop. This may help the driver to avoid someone who rushes through the intersection without regard to other cars. Another effective defensive driving tactic is to pause a few moments before starting forward after a traffic light changes green. Certainly, a person should follow basic safety practices such as always wearing a seat belt and not texting while in the car. Of course, there are some accidents that cannot be avoided. But, a driver does has some level of control over his or her own actions and driving habits.

Finally, families with one or more teenage drivers can save on insuring their car in a unique way. Sometimes if the teenagers maintain really good grades at school, the family can get a discount on insuring a car. This is a great incentive for teenagers to do better at school. If they are paying the expenses for their own car, teenagers have extra motivation to do well in their classes. A family should check with its insurer to inquire about this special discount.

Bank with Tangerine, earn up to $150 in bonuses

As many of you already know, Canadian Personal Finance favourite ING Direct has changed their name to Tangerine. I attended their name-announcement festivities back in November (where I got to meet Macklemore!), but the change just took place last week! If you weren’t banking with ING Direct before, now is a great time to get on the bandwagon with Tangerine.

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If you sign up using my Orange Key (32251507S1), you can unlock more than the usual $25 referral bonus. Instead, you’ll get $50 for opening a chequing account, another $50 for setting up direct deposit, $50 for setting up a savings account, and then earn 2.5% interest on new savings deposits.

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That’s a lot of free money just to sign up for free banking!

I’ve been banking with them for nearly 5 years and by setting up automatic savings plans in high interest accounts and not paying bank fees, I was able to get out of debt fast and build up my net worth. I currently hold a chequing account, multiple savings accounts, and mutual funds with Tangerine. I have both a TFSA and an RRSP registered with them, so they’re a big part of helping me meet my financial goals!

Click Here and enter my Orange Key: 32251507S1 to unlock your bonuses

Happy saving!

The 80/20 Principle of Personal Finance

I’d heard of the Pareto Principle, or the 80/20 rule, before I’d read the book. Actually, I was painfully familiar with the other side of it undergrad, where I frequently reminded myself that the last 20% in a class takes as much energy to earn is as the first 80%. Now I want to share how the 80/20 rule can be applied to your finances.

80% of your financial results will come from 20% of your money management

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If you don’t believe me, think about it: the bulk of your future riches will come from implementing very simple habits now. You will reap a far greater return on setting up an automatic savings plan than the time it takes you to do so. Likewise, think about the return of paying off your student loans in 2 years instead of 10. Ultimately, there are some money-management tasks that matter way more than others. So while it’s good to cut coupons for groceries, it’s more important to nail the big-picture items than strive for the details.

The 20% of your money management that will result in 80% of your financial results are as follows:

Saving for retirement in your 20′s. I pointed out previously that starting to save for retirement at 25 instead of 30 will net you over $150,000. The earlier and more money you put away, the better, but ultimately the habit of saving matters most. It’s easy to save if it’s something you’re used to doing, it’s getting started that’s the hard part.

Getting out and staying out of debt. Sometimes debt is necessary to invest in a future income-generating asset, such as a university education. This is the only debt you should ever incur, and when you have it, you should be on a mission to get rid of it quickly.

Starting early and profitably in your career. I’m a big advocate of avoiding dead-end and low paying jobs if you can. If you can’t, it’s best to work any job you can and continue building your skill set while you look for something more. But before the job hunt even begins, one of the most important things is finishing your university degree quickly and cheaply. Every student that drags out a 4-year bachelors degree into a 5 or 6-year show is not only paying one more year of tuition, they’re missing out on another year of income in a professional job. In other words, another year of school isn’t costing you $6,000, it’s costing you over $40,0000.

Being financially literate. Until I started my MBA, all my financial knowledge was self-taught. If that sounds daunting, it’s not. Money is actually very straight-forward once you get into it (there are a lot of excellent books), and the more you know, the less you’ll be intimidated by going forward. Taking time to understand things like fees charged on your mutual funds or whether an RRSP or TFSA is better for you tax-wise takes some research, but the payoff is huge. Remember, you only need to learn something once. Once you’ve got an understanding of a financial concept, the payoff of that is for life.

Tracking your spending. We all hate to do it, but even I eventually succumbed to keeping track of where every penny I spend is going. Consequently, I know where I’m over-spending, where I have some wiggle-room, and what I need to cut out entirely. If you’re spending $3,000 a year on restaurants, that’s your prerogative, but doing so without being aware of it isn’t forgivable. What gets measured, gets managed, and if you measure your spending, you’ll manage it properly.

What about the other 80%?

The other 80% of money management that will only affect 20% of your financial results is a large amount of small things. Namely, how you manage your money day to day on necessary costs like rent and food. No matter how much people harp on the latte factor, it’s not going to bankrupt you. If you adhere to the five 20% points I listed above, you’ll be financially secure even if you have a bad caffeine habit or a penchant for expensive vacations.

The $0 Weekend

Hi guys! Good news: I’m done all my classes for this term and have only ONE FINAL EXAM before total freedom this summer =) My plan is to catch up on lots of reading and lots of Netflix, because I’m still on a budget. For the rest of you joining me in no-spend land, I offer you The $0 Weekend.

This weekend why don’t you…

Heartbleed-Refresh1. Change your passwords on sites vulnerable to the Heartbleed bug.

The full list of affected websites is available here. Make sure to go through it and change your passwords on all the sites you use to protect yourself against the security breach. I had to change quite a few, so this can take some time, but it’s better than having your credit card information stolen!

sddefault2. Watch the Lizzie Bennet Diaries on YouTube

Pride & Prejudice fans, here’s an incredible modern take on one of the best love stories of all time: your favourite heroine Elizabeth Bennet has a blog! I am so into this, I watched 17 episodes in one day (they’re only 4 mins each! Don’t worry!). I am so impressed with the creativity, acting, and the loveable characters  – plus all the hilarious references to Colin Firth and the original BBC P&P production.

3. If you can’t get your fill of era romances, Downton Abbey Season 3 is now on Netflix

I accidentally read a few articles when the season ended months ago that contained way, way too many spoilers, but I’m still all in. One of my MBA classmates referred to the series as “Crack Abby”, an apt description. I expect I’ll be done by Sunday

6d9b52f437850b7d8e300a0ec0ff0af04. Break out the Easter Decorations & Recipes

I like any holiday that centres around chocolate Jesus, so I’m all about celebrating. I love these glitter DIY eggs, and saw another take on Pinterest of making glitter wineglasses! Why not? Nothing can ever sparkle too much. I also seriously seriously seriously encourage this Oreo easter bark. Omg.

5. Check out the fitness blog scene

The best thing about blogging is the community, and this is true in any niche. Since getting back into fitness, I’ve been exploring the health  blogging community. There’s some AMAZING food and fitness bloggers out there. I love Back On Pointe and Blogilates — but if you know more, please give me some suggestions!

Hope you have a fun frugal weekend =)

What Happens When You Can’t Pay Your Bills

It seems our economic times are getting better. But for many, they are still struggling to pay their bills. Due to income loss or mismanaging budgets, bills can become overwhelming. Instead of sweeping it under the rug and hoping it goes away, you need to understand what happens when you can’t pay your bills and how to deal with certain debts you may have.

Late Fees Can Put You Further Behind

The major initial issue you will face with not paying your bills is the accumulation of late fees. Depending on the bill, such as a credit card and interest rates, you now are looking at a higher balance and monthly payment because the late fee now accumulates interest. If you are unable to pay the minimum now, how can you handle the additional late fees?

The Impact on Your Credit Report

The next issue you have to face is the impact on your credit report. Your late or non-payments are reported to the credit agencies. These cause your credit score to decline. Even if you feel you do not need good credit now, you may in the future. Having a good credit score influences your auto insurance rates, utility connection charges, ability to rent or purchase a home, and job eligibility.

The Stress on Your Family

Another deep issue is the stress that debt causes families. Couples fight more often when stressed with overdue bills. You are distracted at work and have no time for family and friends.

What Can You Do for Relief?

All is not lost if you find yourself unable to pay bills. Here are 6 steps you can take.

  1. Prioritize Your Debt

First, you need to prioritize your debts. Secure debts should always come before unsecured debts. These include your rent or mortgage payments, auto loan payments, and utilities. You need to keep a roof over your head, a way to provide transportation for yourself and your family, and have basic essentials such as light and gas.

  1. Dealing With Medical Bills

Medical bills are a major financial concern. Trying to keep up with these payments has caused many to increase their credit card debt or empty their retirement savings. You can find relief, though.

First, review all charges because many hospital charges are overcharges. Look for duplicates, unreasonable charges, and check with your states hospital charge limits. Once you validate the charges, contact your provider, and ask for a discount, the application for your state or hospital assistance program, or reduced monthly payments.

  1. Dealing With Your Utility Company

Cable and internet are not vital utilities to fight for. Instead, disconnect these services until you are back on your feet. Water, gas, and electric services are necessary for a comfortable and safe home environment.

If you are behind, contact these companies and ask about relief programs such as the federal Low-income Home Energy Assistance Program (LIHEAP) or the National Energy Assistance Referral (NEAR). You can ask if they have a budget program so that your monthly payments are the same throughout the year.

  1. How to Handle the IRS

Have you made a mistake and now owe the IRS? You cannot run from this one bill collector. The IRS can garnish your wages, seize your property, and freeze your bank accounts. So contact them upfront and work out an installment agreement or see if you qualify for a settlement.

  1. How to Get Money Now

Let’s face it some situations cannot be solved unless you get the cash you need.  There are times when you need money or a good loan and nothing less will work. Try and borrow money from friends or family when possible but when that doesn’t work out find the best lender you can.

  1. How to Handle Credit Card Payments

Late credit card payments have an extreme negative impact on your credit score. Not all creditors are as bad as you think. Contact them and review your situation to see what they can do.

Look at your statement and see if you forgot about that 30-day trial payment protection plan. If you have recently moved, some lenders allow you to skip a payment to help with moving expenses and tack it on to the end of your loan. Also, ask if they can waive your late fees for a promised payment or move your due date to something more convenient that allows you to pay on time.