March 26, 2008
Poor Students need money
As a student, I have always needed to supplement the small income my family provides me. They are extremely generous in paying for my education and I know that it is a financial strain on their budget. Since I wanted to have my own car and a somewhat active social life, it has always been necessary for me to hold a part-time position. Currently I have been working at a local sporting goods store. It is a good job but, unfortunately, the salary is minimum wage. It is tough to survive on this income so I thought it was time to move on to something a little more challenging and with greater earning potential.
I had recently visited with my Uncle Ben who is a local real estate broker. We were discussing my finances and he suggested a possible solution. If I was willing to attend classes at a local community college or real estate office, study hard and pass the licensing exam, I could work for him part time in his office. No decision was made as to the position I would have, but he assured me that we would work on it and determine where I best fit into his office. Since this offer had the potential of greatly increasing my income and providing me with an additional skill, I decided to investigate class schedules and costs so I could find the classes that would best fit into my life and budget.
As summer was rapidly approaching, I decided to sign up for a real estate course being offered at a local broker’s office. This was an intense 4-week course, which would keep me very busy but allow me to continue my current part-time job and meet my expenses.
The class was to begin on July 5th and I was looking forward to learning about real estate and finding a new career.
The classes were excellent and I enjoyed the subject very much. There are many legal regulations agents must follow and communicate to their customers, and this was the major topic at the beginning of the course. The instructor advised us that the law of agency was one of the most important areas of the curriculum and would be reviewed and referred to throughout the course term. I found every section of the course interesting.
Of course, this four-week course was definitely a sacrifice for me as it meant giving up a large portion of my summer vacation. After the course was completed, however, I would still have several weeks to enjoy the relaxed lifestyle I look forward to at this time every year.
Once I had completed the course, I went ahead and scheduled my licensing exam. This was being offered in the middle of August and I felt as though I was well prepared to sit for the real estate licensing exam. I was looking forward to my new career and hoping this would be a positive move in a good direction for me.
I contacted Uncle Ben and explained what I had been doing over the summer. He assured me that he was going to find an opening for me in his office and I should just keep him advised. He needs to know that I have been licensed and what hours I am available to cover the office. I could not believe my good fortune that I had this great job waiting for me and was anxious to get started.
When I contacted Uncle Ben as a licensed realtor available for assignment, he said he had decided to place me in the rental section of his office. He already had a qualified person handling this position and I would receive excellent training from this employee. In the long-term, Uncle Ben was not certain that this would be the right position for me but he determined it was a good starting place with the flexibility I required because of my school schedule.
I have now been working with Uncle Ben for almost a year. The work is definitely more challenging than I had expected, but very rewarding. I enjoy helping people find homes they will love and I’m able to maintain an excellent rapport with my customers. I have an outgoing nature and this is an asset in this profession.
I am looking forward to continuing at Uncle Ben’s for the immediate future. When I graduate from college and have established myself as a real estate agent for the required amount of time, I am contemplating taking the real estate broker’s licensing course so that I might eventually open my own office in Uncle Ben’s footsteps. These are my current career plans and only the future will tell if I am able to fulfill this dream.
Posted by juliusp at 10:51 AM | Comments (0)
March 24, 2008
Buying a New Car can be a pain
If you are in the market for a new car, you will probably also be in the market for a new car loan. New cars have become so expensive that few people can afford to purchase them for cash. Financing is the common way to buy a new auto and can be arranged in several ways.
The first thing you must do is shop around for a car that meets your needs. If you are a single person or a married couple, you probably do not need a very large vehicle. A family, on the other hand, will probably be looking at trucks and vans. These are most popular with the people who have several children and spend much of their time driving them and their friends to soccer matches, school functions, etc.
Sometimes the dealerships have loans available at very competitive rates. If you happen to come across this type of offer, it is certainly worth investigating. If not, consider your local bank and also your insurance company. It is imperative that you shop for rates before deciding how you will purchase your new car.
Your credit rating with have a strong influence on the rates you are offered. Car dealerships offering great rates always include a disclaimer stating that these rates are based on a very good credit rating. Anything less and the rate will skyrocket. The same is true of your bank. They will offer to finance your new car as they have very little to lose. The car guarantees the loan so, if necessary, they can always repossess the car and recoup the money they have advanced to you on your car purchase. It would certainly be ugly to have them repossess your car but, if you do not make your payments, this will happen. Therefore, it is important to understand that you should not purchase a car and take out an auto loan if you cannot make the payments. Also, please remember that if your credit rating is poor, the rate charged to you will be considerably higher than to someone with a much better credit rating.
When establishing the loan, you will be asked to make a down payment on the car. They will expect a reasonable percentage of the purchase price as the financial people realize that a car depreciates rapidly the minute you drive it out of the showroom. It is possible that the car will actually depreciate several thousand dollars as soon as you take ownership. The down payment insures that the financial institution making the loan is still covered for the entire depreciated amount as soon as you drive out of the showroom.
They have done this by requiring that you have your auto insurance policy endorsed so that they will receive their money directly from your insurance company.
Some people choose to rent a car for a specific period of time rather than purchase a new one. In theory, this sounds like a good idea but the reality is that there are several drawbacks to car rental. You rent a car for a specific period of time, often three years. When you rent this automobile you are required to put down a predetermined sum of money. This is usually a large amount which is not refundable to you. You are then required to carry specific insurance coverage on this vehicle and, of course, to make the monthly payments previously agreed upon. At this time you gain possession of the new car.
At the end of the vehicle lease period the dealership reviews your car and determines your extra charges. A specific amount of mileage is stated in the lease. If you exceed this amount you are obligated to pay a previously stated sum per additional mile. This can sometimes be so expensive that you cannot afford to turn in the car. Also, if you have any type of damage, this will be charged against you at an exorbitant rate, again, possibly preventing you from returning the car to the dealership.
All leases have a buyout number attached when the lease expires. This number, coupled with your initial down payment and your monthly payments, generally is extremely profitable for the dealership and very expensive for you. You, however, only have two choices. Turn in the vehicle and pay whatever fees are assessed by the dealership, or continue to own the car at the buyout price.
Remember that if you pay the fees and turn the vehicle into the dealership after three years, you no longer have a car to drive. You now have to produce a down payment and take out a car loan with a bank or finance company or provide another down payment to the car dealership for a new rental. While it is true that the rental arrangement will always provide you with a new vehicle to drive. It could be considerably more expensive in the long run. You need to think long and hard as to how you want to purchase and finance your cars so that you choose what is best for you, your family, and your budget.
Posted by juliusp at 10:50 AM | Comments (0)
March 21, 2008
Exotic Places- Fun but Pricey
Traveling can be a real hassle. It is great to take vacations to different and exotic places, but flying these days can be a bit of a pain. I hate the fact that I can’t carry a water bottle with me through the airport or that I have to turn over my lighter at the security check point and then purchase one on the other side. I do realize that these things are for my safety and the safety of others, but what is this world coming to.
Now whenever I fly I am sizing up people to see if they are terrorists, but the truth is you can’t tell ANYONE could be a terrorist. They don’t have to be a certain race or nationality, there are sickos of every race, creed, color, sex and religion. I always just look for anyone acting suspicious.
Most of my vacation travel has been uneventful. I always make sure to carry travelers checks with me and keep some in one bag, some in the other bag and some in my pocket. I keep all my credit cards and cash on my person, so to avoid them being taken. I figure that if I am carrying a purse that will probably be the first thing someone looking for my valuables is going to take. I always do leave some money and travelers checks in it, just in case. I figure I really don’t want to piss off someone who is robbing me, by not having something in there of value for them to take. I am not sure if this makes me smart or paranoid.
I am always to sure and confirm all of my reservations the night before my flight. I like to make sure that everything is in place for my arrival on a set day. If there are any problems, I feel it is best to find out in advance.
I don’t like to travel on trains if it can be avoided. I get a little claustrophobic on them and it is too long for me to be trapped in there. I do like renting cars. I feel a rental car gives me the freedom I need to stop and go as I please. I don’t mind driving as opposed to flying, I actually usually find driving to be a bit more interesting. Seeing different states and areas really interests me and in a plane you skip all that and get right to your destination. If it is a really cool destination, then it is probably better just to get there fast and start your vacation.
I love a good vacation rental, but sometimes it is hard to tell before you get there if it is going to be a good one or not. I absolutely can’t stand if I get there and the room doesn’t seem clean. I especially, can’t stand if the bathroom appears anything less than spotless. I don’t want to see a ring around my tub, or really anything dirty in here. I will actually ask for a new room, if it does not seem clean to me. This can really be a hassle, but in fact if I wanted to stay in a cheesy room then I would be at a cheap motel instead of a 4 star resort. Mostly, this doesn’t happen, but if it happens to you don’t be afraid to tell them you want a different room. There is nothing more important than feeling comfortable in your hotel room. That is essential to a good vacation.
It can also be really annoying if a hotel offers amenities and then they are closed when you arrive. For instance, I stayed at a hotel once in NY and they advertised that they had an indoor pool. Well, I was looking forward to getting in a little swimming (after all it was winter time) but when I arrived, I found out that the pool was closed for repairs for my entire stay. Bummer! If your hotel says they offer something, and then when you arrive you don’t get use of it, say something. Usually, if you do, the hotel will offer you something to make up for it. Sometimes, you will get a free night, a discount on your room, or a free meal. Usually, they will do something to make it up to you, so make a little fuss, it is worth it if a hotel doesn’t live up to your standards.
Same with the airlines. If a flight is delayed or cancelled, don’t put up with it, make a fuss. Usually, they too will offer you something for the inconvenience. If you were inconvenienced, then you deserve something. I mean airfare is not cheap, and if you are a minute late boarding your flight, they won’t let you on. So if they don’t live up to their end of the bargain, then let them know you are dissatisfied. If someone in the airport can’t make it right for you, then be sure to keep the names of the people you spoke to and especially if they were rude, be sure to contact the airline after your trip. Write letters and be proactive. Be sure to stand up for your rights. You have spent your hard earned money to have the vacation of a lifetime, don’t let anyone mess with it.
Travel and vacationing can be a very rewarding and enjoyable experience. If there are any problems, then address them, and you may just find that you get a freebie out of it. Have a great trip!
Posted by juliusp at 10:49 AM | Comments (0)
Debt is not fun
Why is it that every big purchase you make, you take a loan? Everything costs more that the average person can afford on their own, so aren’t we really asking people to constantly go into debt?
The average car price is about $25,000, while the average home price is about $430,000. Yet the average household income in the US was found to be $48,201, in 2006. The cost of gas today is upwards of $3.15 per gallon. When you look at these statistics something just doesn’t add up. As a person making a median income, how are you expected to stay out of debt? You can’t. So you borrow money from the banks and take auto loan, home loans, and mortgages, to be able to live the American dream.
The American dream should really not include going into debt for the rest of your life. People need to take a stand against the constant cost increases that are taking place. In 1970, the median family income was $9,870 per year. The average cost of a new car was $3,900 and the average home cost about $26,600. The cost of gas was .36 per gallon! If you look at these figures, you can see that the salaries that people are making are not keeping up with the rising costs in the housing and automobile industries.
In 1940, the cost of an average house was $3920 and the cost of a car about $800 and gas was about .11 per gallon. The average income was $1725 per year.
Do you see the trend? The price of the average new home has risen 109.69% from 1940 to 2006. The price of the average car has risen 31.25%. The cost of a gallon of gas has risen 28.64% while the average salary from 1940-2006 has gone up only 27.94%.
Is it any wonder why people can’t afford to be without debt? Why is our society so hell bent on living above our means. I would like to buy a house and I am working toward a career that will allow me to do such. I am worried about taking out a mortgage and making a promise to pay it back for the next 30 years. Or a car loan for the next 8 years. It seems tough to predict what the future will hold and it does not seem feasible to commit for that long a period of time, that things are going to be stable enough to keep paying.
I have been hearing a lot of reports on the news about all the people losing their homes with the stress in the US economy and I really feel for these people. Most are hard working, some have been laid off from jobs that they thought they would be retiring from. Some are our poor reserve people who have been sent to war for months and sometimes years at a time. Their families left to struggle and pray for their return. They need to be home with their families, helping to pay the bills. We love and appreciate them for fighting for our country, but we want them to come home.
If we would stop fighting this war, we could maybe focus on getting our economy back on track and headed in the right direction. The reason our economy is in such poor shape is because we are spending billions of dollars to fight and rebuild Iraq. Granted we do have an obligation to clean up our mess over there. We go through our lives for the most part ignoring the war that we are fighting everyday. It used to be that you would hear all about the war on the TV news programs daily. How often are we getting updates now? We have been at war now for 6 ½ years, it is no wonder our economy is showing signs of fatigue. Let’s not let our government continue this war. Let’s stop paying for a war that as Americans we no longer believe in. Let’s bring our innocent troops home and let them regain some sort of life again, for those who it is possible for.
The war has not just affected the soldiers, it has affected all of us. Everyone of us is paying more and struggling everyday to stay out of debt. Our government is taking the money out of our pockets to fund their own agenda. If they really want to protect us, then let them stop this thing now. Wrap it up and bring the men and women of this country home.
Be careful, I feel that things will only get tougher from here on out. Be wary of those lending and finance companies offering to “help you out�. Mortgages, car loans, and borrowing and spending need to be kept to a minimum at this time. Spend as little as you can and avoid borrowing unless absolutely necessary. You will need to save some money and put it aside for a rainy day, I fear the rain is coming soon.
Posted by juliusp at 10:44 AM | Comments (0)
Travel in Europe- Take a Vacation
Traveling can be a very rewarding experience. I would love to be a jetsetter, flying off to this country and that tropical island on a whim. I wish I had the money to pursue that dream, but first I must get my degree and a good paying job. I am actually taking business and finance in school, with the hopes of pursuing a career with a big company and lots of travel. I think it would be awesome to get to experience life in the fast lane for a little while.
I would love to travel to Europe and to Asia. No place specific, although I know I would love to visit Japan and China and Italy for sure. Spain also seems very beautiful. There is a lot to see in Europe and it is very different from the US. I already know Spanish and English and am fluent in both. I would love to learn Japanese and I am taking a course in Italian right now. I am trying to learn many different languages as to make traveling internationally for business a lot more enjoyable.
I think perhaps I will try vacationing in Europe to get a feel for the difference in culture and become a little more familiar with the European ways and customs. I am realizing that international travel can be a bit challenging at first, especially not knowing the languages. The best way to see if you really can communicate in a foreign language is to travel to that country and try to speak with people who speak that language every day. If you can pull this off, then you are truly fluent in a language.
If I do vacation in Europe, I will not use travelers checks, they seem just a bit too touristy. I am sure I can find a government office where I can exchange my American dollars for Euros. I could even open a bank account there and keep my money in a European bank until my return. I would love to see how their banking system works. I am so excited about the opportunity to travel to new and exciting places.
I think that I will start planning my European excursion right away. I will vacation in Italy, Spain, and maybe even England. I will contact some travel agents and go online so I can get the best prices on airfare, hotel stays, and rental cars. I will spend my summer in Europe, or maybe just part of my summer, then I can spend the rest of it in Asia. Now that sounds like a plan. I will have to work a lot over the next few months to save up, but I think it will definitely be worth the effort.
I should never have written this blog, now instead of dreaming about traveling to Europe and Asia, I am just going to do it. Well, maybe that is better anyway, since there is no time like the present, and you never know what tomorrow will bring and all that stuff. I just asked my friend Alexis and she said she would love to come with. You know she is the type whose family has lots of money, so she can get her parents to foot the bill and so she definitely will be allowed to go, since parents never say no. Well, for me it is a little different, my parents died when I was twelve and I was raised by grandma after that, so now that I am over 18, pretty much I am on my own. Oh, don’t get me wrong, I love my grandma dearly, but she is getting old and really doesn’t try to parent much since I went away to school. I guess she figures I don’t need her to direct my life. I mean I get good grades and got a full scholarship to college. I have always tried to make her proud and not give her too hard a time. I mean after all, she was nice enough to take me in when my mom and dad passed. My brother on the other hand has always given her grief but there is not much more to say about him than that. I know he took it really hard when my parents “left us� as he calls it. He never says they died, he just says they “left�. I don’t think he has ever come to terms with it. He was so close to my dad and he was only 9 when they died, so I guess it was harder for him, I don’t know. I think people just handle things their own way.
Anyway, back to the topic, I will travel to Europe this summer, after final exams. I will have to get some new clothes, after all, I will want to have a new wardrobe to look more sophisticated when I arrive. Anyway, after that I will go to Asia. I promise not to try and dress Japanese or anything wild like that, I mean after all I am still an American. Maybe, I will take a loan out to go on this trip. This way I don’t have to take too much time away from my studies to finance my adventure. Well, I’ll work out all the details later!
Posted by juliusp at 10:43 AM | Comments (0)
The People with ARM Loans are OK for now
I just heard today on the news that the government will be dropping the interest rate on mortgages again. Do they really think that is the only reason that people are not buying houses? The world is a mess with this war and all the money this country is sinking into rebuilding Iraq. We don’t have any money to spend on new homes. We can barely afford the homes we have now.
So many homes are being foreclosed on and so many people are in so much debt, ever bankruptcy. Some people are taking out second mortgages, just to pay down their credit cards. Some are taking loans to pay off other loans. Money is just tight all over this country. No one can afford the proverbial pot to piss in, much less a new house or car.
As a country, do we believe that we can improve this country’s economy without ending this war. We are spending trillions of dollars on fighting a war for another country. Sure they told us this was the war on terror, but who attacked us, wasn’t it the Taliban in Afghanistan? So why is it that we are in Iraq, oh that’s right it’s the whole hidden agenda that our government has. I have no problems helping out the Iraqis, but at what cost.
Our banking and finance companies in this country are dying. The stock market is plummeting, interest rates are dropping the value of our money is falling, and gas prices keep on rising. Everyone is raising their costs to cover the costs of transporting goods. The post office is upping the price of the stamp another penny this year, because they are supposedly in debt, due to the high gas prices. Give me a break, they are a government institution, maybe if the government didn’t have us in this war, then none of us would be in debt.
Financially, how we will come back from this if we can’t even figure out how to get ourselves out of the war? How is it that our country can function in a deficit? Have you ever questioned that? Can you? I don’t think so. Go to the grocery store and get a cart full of groceries and see if they let you out without paying. Do you really think that they will understand when you tell them you are functioning in a deficit? The same rules that apply to them don’t apply to us.
So they promise to send the people an extra check this year, to stimulate the economy. Well, I heard them say in a news report that we should give this money only to the unemployed, because they have more time on their hands to spend it. Sure, we are all trying to get blood from a stone, and now they will send us some extra money, so that we can spend it to stimulate the economy. After all, don’t save it, that won’t help. All you people who can’t afford to take care of your bills, just take this money and go on a shopping spree, that will fix everything, don’t you think?
Will the changing of the President fix our problems? Look, I think that at this point, no matter who you want for President I am not sure that there is any easy answer. We have to start from here and no matter who you will be voting for, and I do believe that the candidates are well intentioned, but I just think that there are limits on power and their choices. I mean this can’t be solved overnight. I do believe that we need to take steps to get out of Iraq and to fix this nations economy, but I don’t think that anyone can make these repairs instantly. We have spent the past 7 years getting ourselves into this mess, and now it is going to take a while to get out of it. In any case, things need to start moving in the right direction now. We can’t wait any longer to start fixing this thing. We need to be ready just in case we need those troops elsewhere. We can’t continue to turn our heads to our mistakes.
I support our troops and I feel that we all should. They went abroad on what they believed to be a necessary mission of protecting our country and the people of Iraq. They must be commended by the people of this country and by our government. We must make sure they are treated like the upstanding human beings they are, brave and compassionate. We must make sure that we don’t allow them to be tossed aside like our Vietnam Vets.
It is time to take action, both as a country and as human beings, to protect and serve our people. Let’s get our people home and secure and on a better financial track. Now is the time, it just can’t wait anymore!
Posted by juliusp at 10:42 AM | Comments (0)
Hard Times for Business in the US
Real Estate agents must be really suffering with the economy being so out of whack. I mean what was probably a very profitable business, real estate, now must be sinking quickly. I really feel for these people who are probably used to living off a 6 figure income and now are probably having trouble making an occasional sale. Interest rates on mortgages are going down, but I don’t see how anyone can really be comfortable making such a large purchase in such shaky economic times.
People are probably not taking out as many loans with the instability of the stock market. More people may be taking out government loans for things like college. Thinking that if they get a degree that will help them with the value of the money in this country sinking. I don’t know if having a degree will help you. I am hoping it will since I am working on mine right now. It is really hard to determine which businesses will be profitable in a few years. Lots of people in all different industries and large corporations are suffering. To pinpoint which jobs will be the hardest hit will be a tough thing to determine. I mean there is so much corruption that even a company that is seemingly making good money, can turn out to be running a scam. Once that happens, it will crash, before you can get out.
I guess the haves in this country will be investing, maybe in the stock market and maybe not. That has been a little shaky lately as well. I am sure some people will be tucking their money away in a bank, especially with many banking institutions now compounding interest daily, it may be a safer route to take.
My mom told me that back when I was born, she had interest rates of 5.25% on her checking account and 6.0% on her savings account and that interest was compounded daily. She says that money market and CD accounts were all above 7% depending on the term some turned as much as 10% interest. Now a days you are lucky if you can find a bank account that will pay you 3% - 4% and that is usually on a CD. Why is it that interest rates took such a sharp decline? And how is it that your bank accounts pay minimal interest, but the credit card companies charge you a 20% interest. Why is it that borrowing our money doesn’t cost the bank much, but if we want to borrow their money, it costs us a lot. They are making a 17% take on your money for loaning it to someone else. Maybe, we should just start to loan money to each other, and skip the middle man, it seems to me to make more sense. Then you could charge someone 10% to borrow your money, they would be paying half the interest they would on a bank loan, and you would be making more than 2x the amount the bank would be paying you. I really makes a lot of sense doesn’t it.
And for that matter, organ donation is the same thing. Your loved one dies and you donate their organs, and then the hospital turns around and sells them and makes money on them, yet you are not allowed to sell organs. Think of how much less things would cost if we stopped making the government the middle man. We could pass the savings on to each other and the additional profits as well.
We need to start thinking of financial alternatives in this failing economy. The answer is not maxing out the credit cards and borrowing more money. The answer is truly to start tightening the belts a little. Cut some of those extras out of your life. Start keeping track of every dime you are spending and see if you can’t put aside some extra money and start paying down your debt and put aside a little for a rainy day. For instance, let’s say that every morning you spend $5.00 at Starbucks. Then maybe the answer is to buy a travel mug and a coffee pot and carry your coffee to work. It would save you $150.00 per month which is about $1800.00 per year. One small change and all that money goes back in your pocket. I know we are spoiled and don’t like to give up our little extras, believe me I am too, but I tell you what, I switched my cell phone off a plan and to a prepaid one 6 months ago, and in that time I have probably saved about $600.00. Prepaid phones don’t have a lot of extra charges like roaming and long distance and on the average I am now paying between $15-$20 per month for my phone, where before I was paying between $80-$130 on average per month to my cell phone carrier. So a small change and a big payoff. I also switched my car insurance and now instead of paying $163 per month I am paying $64 per month. Extra hundred a month just on that switch. Sometimes it is not a matter of giving up, but shopping around to find the best deal. If the best deal is where you’re at then don’t make a move. Chances are you can find a way to cut back somewhere and hang on to that money for the future.
It doesn’t really make any sense to me how the economy has gotten so messed up. My thought is that there were other problems that we didn’t see that have been working their way to the surface for a while now. We need to look out for ourselves and prepare for anything this world throws at us.
Posted by juliusp at 10:41 AM | Comments (0)
Planning Simplifies Travel
Traveling can be a very rewarding experience, however, for the novice it can be a very harrowing time. Knowing the ins and outs of travel can really help make your first adventure much more enjoyable.
The first thing you must do, is decide on a destination. If you are traveling for business, then this has probably been decided for you. However, if you are traveling for pleasure, you will need to choose a destination that suit you and your desires. If you are not sure some travel sites offer opportunities to answer questions about your likes and dislikes and then they process out what type of vacation suits you best. Do you want a high paced vacation, are you the type of person who likes to go, go, go? Or are you the type who lives a very high paced life and would like a vacation with not a lot of people around? This will help you determine whether you would prefer a trip to Vegas or a week on a secluded tropical island.
Once you have determined the location that you will be visiting, go online and google the destination to see web sites about the area you will be visiting. Be careful to look and see what websites you are on, and just browse, making notes for yourself on a separate paper about areas of interest, hotel names in the area, any sites or restaurants you will be interested in going to while in the area. Feel free to click links and look around, but just make notes, don’t book a flight or hotel room.
What you will find is that most of the sites that you will bring up will be these travel.com sites that will be glad to handle your whole vacation for a fee. What I personally have found is that first off their rates are no better than say that on a hotel or airlines website. Not to mention the fact that if you get there and they don’t have a seat on the plane for you or a room at the hotel, well sorry, but they have you sign a waiver in advance saying that you can’t hold them responsible. Look I don’t know about you, but for me a vacation would be totally ruined if I got to the hotel and found that I didn’t have a reservation. I am kind of the old fashioned type who likes to go directly to the hotels themselves and get prices and info. Take your information about the area and look up the hotels that interest you and you can get to their direct websites. Just be careful sometimes while doing this you continue to pull up travel.com websites that pretend to be the actual hotel website so again be sure to look at the url and see where you are at.
Also, it is usually better to contact the airlines directly and then if you are not stuck on a date you can play with the dates online and see the cheapest times and days of the week to fly. You can also check online if there are any deals that the airlines are offering for certain time frames. Always try to book a flight on a Tuesday or Wednesday. Research shows that these are the days the airlines offer the best deals, why, no one really knows for sure.
After you have booked a hotel and made your flight arrangements there are still a few things to settle. Be sure to check out transportation for after you leave the airport, some hotels offer shuttles and buses, especially the all inclusive hotels. There is always the option to rent a car, usually from the airport. If you decide that you need or want to rent a car, then be sure to check out Enterprise and Budget. These are usually the ones with the best rates (I have found), but check out a few so that you know you are getting the best deal.
Also, be sure to check out what there is to see and do in the area you will be vacationing in, and of course the restaurants. You will need to kind of scout out some things you will be interested in doing while you are there, unless your main activity will be hanging out on the beach, and happy hour at the hotel. In that case, don’t worry about what else there is to do.
Lastly, before your trip be sure to purchase traveler’s checks and always store them in several different places. Let’s say a bag gets lost by the airlines, you don’t want all your important stuff in one place. Also, always have some cash, a credit or debit card, and always bring a little more than you anticipate needing, just in case. The day before your trip confirm all reservations via phone to be sure that everything is in place for your getaway. Nothing is worse than a problem with your hotel stay or flight. That will definitely put a damper on things.
Have a great trip and remember, the most important part of your trip is the good planning beforehand!
Posted by juliusp at 10:40 AM | Comments (0)
March 20, 2008
Are you supposed to be born with this knowledge
There should be a course taught in high school regarding mortgages and home equity loans. The largest purchase in most people’s lives is a home and they have no preparation for this expenditure. Unless someone has studied in the finance or real estate areas, there is no education provided for such an important part of a person’s life.
There are many considerations when shopping for a mortgage and it is very important that you choose your financing wisely, as huge savings in interest may be available if you make the right choices. A very small difference in rate can become a very large difference in the actual amount you pay back on a mortgage. It is true that mortgage brokers can help you and answer some of your questions, but you need to remember that they are going to try to interest you in the arrangement that is most profitable for them.
You must decide how much of a mortgage you can afford on your income and there are calculators available online to assist you. It is often stated that your home should not cost more than two and one half times your annual salary. Once you determine the amount of principal you can afford to carry, you add your down payment to it and you will then know how much you can afford to pay for a home. Remember, you do have to allow for numerous additional expenses such as closing costs, attorney fees, prepayment of taxes and homeowner insurance premiums, appraisal fees, title fees, home inspections and many other miscellaneous charges.
Once you have found the home of your dreams, it is time to seriously begin shopping for a mortgage. Gather information regarding rates and terms available, always taking into consideration any extra fees, etc. which are being added on to the offer. Determine in advance if you are interested in a fixed or a variable rate. Although a variable rate can often be tempting, always consider that it can be a gamble and decide whether or not you want to take the risk. Mortgage loans are often available for a variety of terms, usually 20-years, 25-years and 30-years. Rates sometimes differ based on the terms available but your interest payments over the shorter period loan will be much less than over the longer term. This could help you to more quickly own your home free and clear. Being mortgage-free can be a wonderful feeling and, if this is your goal, you will want to consider the shortest term you can afford.
Comparison of rates, terms and types of mortgages can be made on the internet at sights such as Bankrate.com. Weighing these offers and checking them against what your local banks might have available, you can make an informed decision about the financing of your new home.
In the 1980’s banks found a new way to increase their earnings. They introduced homeowners to their newest product known as the home equity loan. After working hard for many years to build-up equity in their homes, suddenly people were being tempted by having that equity available to them for a variety of other things, some of which could increase their standard of living. Suddenly, they could borrow this money to make home improvements, buy new cars, invest in a second-home. Unfortunately, however, many began borrowing to consolidate their credit card debt. They could consolidate this debt with their mortgage through either refinancing the mortgage or taking out a second mortgage as part of a home equity loan. The saddest part of these transactions is that once the debt has been transferred to the loan, the credit cards are still there to tempt people to continue to spend until they are back in debt. Of course, when that happens, they will most likely not have any additional home equity to use to again consolidate their debt and will have to payoff the debt at the very high interest rates charged on credit cards. They are also exposing themselves to the possibility of late fees and over-the-credit-line fees which increase your debt load and generally make it nearly impossible to ever get back to being debt free. This is a cycle which you never want to begin so it’s very important to be prudent with your expenditures and keep yourself in a solid financial position as, in the long run, this is how you will accumulate wealth and it will enable you to enjoy a more comfortable future.
Posted by juliusp at 10:31 AM | Comments (0)
March 18, 2008
Home Buying- can they make is harder?
If you are considering purchasing a new home, it is time to think about the mortgage options available to you. You can go to your bank and ask about their rates and terms. While inquiring about this, you also need to investigate closing costs. Closing costs include miscellaneous bank fees (watch out they can be very high), appraisal fees, title costs, etc. These can amount to a very large sum of money. Not all banks charge the same rates so it is very important that you do a thorough investigation and determine what costs are being charged by the lender you are considering.
After checking out the rates at your bank, you would want to investigate what other banks are charging. One source of information is Bankrate.com. There are many websites that will provide this information but this one is very popular and seems to give you the information you want with the least hassle. Again, you must consider the closing fees as part of the loan cost.
Options for mortgages include a variety of terms and whether you want a fixed rate or a variable rate. Be careful of variable rates because banks often use them as teasers. They will offer an exceptionally low rate of interest for a short period of time (possibly one to three years). After that time period, the real rate kicks in and is usually prime plus a certain percentage. When the prime rate rises, so does your mortgage payment. This is a gamble and can cost you a great deal of money over the long term. You will be fine as long as the prime rate stays low but, if it should increase considerably, you could find yourself in a position where you are unable to make your mortgage payment. This could eventually lead to foreclosure on your home. This is not a road any of us wants to travel.
Always consider the long term possibilities when investigating a mortgage. A home purchase is generally the largest purchase a person will make in their lifetime. You want to be sure that you are getting the best deal available to you. A difference of 1% can save you possibly $40,000 in interest over a 30-year loan period. This is a great deal of money and shows you the importance of making certain that you get the best loan deal available for your mortgage.
Always remember that the interest rate is not your only consideration. Some banks and finance companies offer lower rates as a lure but charge exceptionally high fees to compensate.
You must weigh all of the charges before making an informed decision as to which offer is best for you. You may want to consider a 20-year loan or a 25-year loan instead of a 30-year loan. The interest savings would be substantial and, if you can afford the higher payments, this could be a great advantage to you over the long-term.
You must also give some consideration to mortgage insurance. The purpose of PMI is to protect the bank’s investment but you must pay the premium, which is usually included in your monthly payment to the bank. Anytime you place a down payment of less than
20%, the bank requires mortgage insurance to protect their interest in the home. Once you can prove that your home equity has increased to more than 20%, you usually can cancel the insurance. Some companies, however, demand that you keep the coverage for three years and, only then, will they consider an appraisal that shows your equity has increased to over 20%. This is another cost involved with a home purchase.
While planning your budget, please remember to include home insurance as part of your monthly payment. This can become quite expensive depending on the type of policy you choose and the value of your home. Insurance, along with taxes, must be included in your budgetary figures so you can accurately estimate the costs involved with your home purchase. Investigate insurance thoroughly as there can be huge differences in rates. There are mutual insurance companies formed so that their policyholders are also their stockholders. These can be quite beneficial and should be included in your investigation.
Posted by juliusp at 10:29 AM | Comments (0)