Financial Planning: Secure Your Future

Life is full of unexpected twists and turns that can take you down many different paths. Sometimes these paths can be good ones that will help you along in life while other times they can be hazardous and cause you all kinds of trouble and end up costing you a lot of money. This is the exact reason why you need to make sure that you always have some sort of plan to make sure that your financial future will always be secure. There are many ways in which you can ensure that these dark twists and turns will not do permanent damage to your life. You can make investments, have credit cards for emergencies or even apply for an installment loans when things get bad.

The Basics of Finance

There are many things that you can do to be sure that you can live comfortably from one month to the next. Planning is the first step in making sure you financially set. You should always gather all of your bills for the month and decide what the accrued payments will be. Once you know the amount of all your monthly bills you can make a plan as to how much each week you need to pay in order to guarantee the entire thing will be paid each month and still allow you to have money left over.

Once you have done this you will also need to factor in things like money for food and other household items that you will need for the month. You are also going to want to think about putting aside some extra money in a savings account of some kind to help pay for your children’s college tuition. You may also look into investing a little bit into stocks and letting it grow to get ahead.

There are of course things that you will want to get in the habit of or rather get out of the habit of depending on your lifestyle choices. You want to try to avoid things like unnecessary shopping trips to the mall, ordering take out and fast foods. These are all things that take a lot of your money that you could be putting away into a savings account.

Loans: Payday VS Installment

When you find that you are having a very bad month; you just lost your job or end up hurt and can’t work for a while, you need to get a little extra cash to help out until you can get back on your feet. Getting a loan is one alternative that you may want to consider. However, you want to be sure that you are getting the right type of loan. Otherwise, you could be doing yourself far more harm than good.

Let’s look at payday loans:

  • These loans usually run anywhere from 100 to 1500 dollars
  • The loan is a short-term loan that is due upon your next paycheck and is a pay in full.
  • You pay the loan either by electronic transfer once your check is deposited or by a postdated check given when you apply for the loan.
  • Lender charges a Fee or APR usually around 390 percent.
  • This is an unsecured loan. Ability to repay loan is determined based on previous paychecks
  • If payment is unable to be made it is rolled over and additional fees are then tacked onto the loan.

Let’s look at Installment loans:

  • These loans can range anywhere from 150 dollars to a couple thousand dollars and have a fixed monthly installment plan to pay back the money over a six month to a couple years.
  • The APR on these loans can vary from 25 percent to more than 100 percent.
  • The loan can be renewed every few months, with a new interest, credit insurance premiums and fees.
  • This is a secured loan by borrower’s personal property. Collateral can vary; from cars to consumer electronics.

So, if you find that you are falling on hard times and need just a little extra help to get by taking a look at these types of loans so that you know what you are getting yourself into and know that what you need is a little security and something that is not going to stick you with huge APR. Installment loans are the safest most secure way to go if you want to make sure that your family is safe and secure.

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