The Importance of Insurance

What Makes Insurance So Important?

There are lots of expenses in life that we deal with. Most of them involve a tangible or useful thing–gas for the car, service for the cell phone, food in the refrigerator. Because these items seem to get more expensive all the time, we are always in pursuit of things that we can eliminate from the budget, and the ones that don’t provide a visible benefit are often at the front of the line for the chopping block.

A good example is insurance. Many of us have put money into insurance for years, if not decades, and often ended up with nothing physical to show for it. We just send our monthly payment on car insurance or homeowners insurance, and otherwise, we feel like we’ve got nothing in return. Once things are paid off, it can be tempting to kick the insurance policies to the curb, or at least to drastically reduce the coverage.

This can be a very costly mistake! While insurance policies occasionally do yield us a financial benefit that covers a loss of some kind, they otherwise don’t provide the type of benefits people expect. What we aren’t taking into consideration in those situations is peace of mind. The reassurance of knowing you have [Continue reading]

Is an FHA Loan Right for You?

The Federal Housing Administration (FHA) was created over 80 years ago to help people who do not make a lot of money to be able to afford the American dream of homeownership. About 16 percent of all loans on homes are FHA loans. In order to decide if these loans are right for you, there are several important facts that you will want to consider.

Need a Small down Payment

The average down payment on a conventional loan is 20 percent. Compare that to the down payment on an FHA loan that can be as low as 3.5 percent. The average home in the United States right now sells for $218,000. Therefore, to get an FHA loan one might only need to come up with $7,630 compared to $43,600 for a conventional loan.

Can Have a Lower Credit Score

You can have a lower credit score and qualify for an FHA loan. In fact, you may only need a credit score of 676 compared to a credit score of 767 for a conventional loan. Therefore, if you are now ready to be a responsible homeowner, then you may qualify for a loan even if you were not responsible in the past.

Higher Income-to-Debt Ratio

You can often have a higher income-to-debt ratio and qualify for an FHA loan. In fact, the average person qualifying for FHA home loans has a 29 percent income-to-debt ratio compared to 24 percent for conventional loans. Furthermore, the average person spends 44 percent of their income on recurring debt payments compared to 33 percent for people with conventional loans. [Continue reading]

Budgeting for Upcoming Purchases and Goals

Minimalist Budget

Budgeting and Modern Life People need to have money to purchase groceries and day-to-day household items.  They need to have money to pay their monthly rent or mortgage as well. Therefore, most people devote a lot of time to thinking about money.  … [Continue reading]

Financial Hard Times: How to Pull Your Family out of Debt

Debt Free on a Low Income

Financial woes can affect all types of families regardless of income. If mounting debt is causing economic hardship for your family, there are measures that you can take to get back on your feet financially. Here are some of the best ways to pull … [Continue reading]

Are Your Water Bills “Eating You Alive”?

According to CreditDonkey, "on average, Americans pay $104 per month for electricity" and "$70 a month for water."  This amount is based on the average person using between 80 and 100 gallons of water per day. This of course only applies to … [Continue reading]

3 Ways Keeping Tabs on Your Credit Helps More Than Just Your Finances

Credit rating

When you think about your credit rating, you may think its importance when you apply for a new loan or a credit card. Of course, these are two important areas that do play a major role in your finances, but credit ratings affect more than your … [Continue reading]

A Guide to: Making the Most of Cash Back Rewards Credit Cards

Cash Back Credit Cards

Let’s face it, there’s hardly a day that goes by where you don’t spend money. Whether it's putting gas in your car, grabbing lunch with coworkers, or stopping at the coffee shop to get your morning fix. So the question is, if you’re frequently … [Continue reading]

How to Start and Build a Valuable Coin Collection

Valuable coins

Almost every youngster dreams of finding a buried treasure. As we get older our dreams may change and we begin to dream of winning the lottery or getting a visit from Publishers Clearing House. While the odds of any of these things happening are … [Continue reading]