The Personal Financier

The family car, or a car designed for at least two to three children in the back seat, are often overlooked or considered less than appealing. Though modern family cars are full of the latest technology, safety features and interesting designs, numerous other benefits are available to make the purchase of the car worth the expense.

Insurance Benefits:

One of the best benefits of a family car is cheap auto insurance policies. The cars are filled with the latest and best safety features to give parents with young children peace of mind. Those same safety features result in great car insurance discounts that save a family or individual large amounts of money over the course of a year.

Safety Features:

Family cars come with many standard safety features that the little sports cars or fancy cars might not always include without adding to the price. Most family cars have front and side airbags, anti-lock brakes and stability control through electronic means. These features help give peace of mind to parents who might worry about young children.

Cost:

Family cars will vary widely in cost, but in many cases the vehicles are reasonable when compared to other types of vehicles. It is possible to find new family cars at low prices to mid-ranged prices without difficulty. Many new cars in the family vehicle category are reasonable and most families can find used cars for budget friendly prices.

Technology:

One thing that is often misunderstood is the technology features in the family car. Many think that the reasonable prices and family oriented designs mean the vehicle is limited in the technology included. This is simply not true as many of the latest family cars are filled with as much or more technology than other types of vehicles. The family vehicles often come with a GPS system and the latest vehicle technology.

Space:

Family vehicles are designed for numerous passengers and car seats, resulting in a spacious interior that is comfortable for the whole family. This is a benefit that many other types of vehicles cannot match because sports cars and vehicles designed for individuals or couples are not made with the idea of passengers in the back seat. Family cars expect the family to grow with the vehicle, so the space in the back is made for infants and teenagers to feel comfortable.

Storage:

Like the space requirements, the storage needs of a family means a larger trunk and more options for storing items when traveling or carrying young children. The large storage space is a typical feature of any family vehicle.

Family cars have numerous benefits that make them perfect for a growing family, carpooling or an individual who wants to take friends out on the weekend. Though it is designed with the family in mind, the benefits are available to anyone who buys the car.

Insurance for a policy holder’s house costs money throughout the year. The insurance company will decide how much of a risk a house has of being destroyed by various events. If the risk is high, the premiums will be high, but this type of insurance will save the owners of the house a lot of money in the long term for several reasons.

Purchasing home insurance means that Britons have protection against fire or flood. If the home were to be damaged by a fire, it would need to be repaired. In the worst cases, it will need to be completely rebuilt. In these cases, the repairs or the rebuilding would cost the owner an exorbitant amount of money, and people don’t always have such a large sum of money available. With buildings insurance, the policy holder has paid monthly or yearly premiums, but this amount of money will be much less than the amount they would need to pay to completely rebuild the home in the event that it has been destroyed.

Another part of home insurance is contents insurance. When there is a fire, more than just the home will need to be replaced. Everything within the house will be destroyed and if the home’s owner has to replace all of the contents, this can also cost a large amount of money. Some home contents that contents insurance covers are furniture, electronics and personal belongings such as clothes. Home owners who only have buildings insurance wouldn’t have to pay to have the house repaired or rebuilt, but they would have to purchase everything that goes in the home, and this can be expensive as well.

When people need to file a claim, they will need to pay the excess. The excess is the amount of money that the insured’s pay before the insurance company takes over. Typical amounts insurance companies charge for the excess are around 50 or 100 pounds. If the house is a victim of subsidence, the excess tends to be much higher. For example, some companies charge as much as 1,500 pounds for subsidence claims. With the excess and the yearly premiums, these amounts combined would cost the home owner much less than having to pay to have the house repaired or rebuilt and have to replace everything in the house.

When a house has been damaged to the point that it cannot be lived in until it has been repaired, the inhabitants will need to find alternative accommodations. This would be another expense that can cost Britons a lot of money, especially if they have to live in a hotel for an extended period of time. Home insurance will also provide the money needed to pay for other living arrangements while the house is being repaired or rebuilt. Because hotel rooms can be very expensive after people have to live for an extended period of time, a buildings and/or contents insurance policy would save Britons a lot of money.

When the EuroZone formed in the late 1990’s, there were many critics of the Union’s creation, but perhaps none was as outspoken as economist Milton Friedman. Friedman is remembered as the most renowned economist of the late 20th century, and when the euro was first introduced, he adamantly stated that the EuroZone would not survive through its first major recession.

His argument was simple. He did not believe that a 16-nation currency bloc could survive without a single fiscal policy. The constraints of EuroZone monetary policy would inevitably serve to help some countries, while simultaneously helping other countries. Let’s break down this argument into real-world events.

Central Bank Action

In the modern economic model that rules the developed world, when a country [or in the case of the EuroZone…countries] is facing recession and deteriorating economic conditions, a Central Bank will lower interest rates in an attempt to ease credit markets and spur economic growth. Conversely, when an economy is growing very well, and begins to grow too fast, then inflation becomes a threat, and when inflation becomes a threat, a Central Bank must increase interest rates in order to curb economic growth and stem inflation.

This is how the Federal Reserve operates in the United States, the Bank of England in the U.K., the Reserve Bank of Australia in Australia, and other Central Banks around the world. How is the European Central Bank supposed to operate, though? It doesn’t have only one country to take into account; rather, it has 16 nations to take into account. How can the European Central Bank satisfy the needs of every country? This was the primary objection of Milton Friedman.

The Global Credit Crisis of 2008

When the Crisis of ’08 erupted, every country in the developed world, for the most part, was thrust into recession and financial Armageddon at the same time. The United States, Germany, Canada, Australia, Greece, Portugal, and Spain—they were all in major trouble. Therefore, the response of every Central Bank was the same—slash interest rates! The United States slashed rates to near 0%, the U.K. to 0.5%, the EuroZone to 1.0%, and forex brokerage firms were forced to widen their dealing spreads as a result of the wild volatility that unfolded.

Interest rates needed to be slashed in order to fight off another Great Depression, and the concerted and unified effort of Central Banks around the world did act to stave off another Great Depression. However, the response to the global economic recovery was different in every nation around the world. Every country plunged into recession at the same time, but every country emerged from recession at a different rate of velocity, and this is where the problem lies. How does the European Central Bank satisfy the needs of all these 16 countries who are emerging from recession at different speeds. Furthermore, some EuroZone countries are still in recession! This is a major challenge.

Therefore, Germany is going to need much different policy than Greece. Germany may be facing inflation and need a stronger currency, but Greece may be facing deteriorating conditions and need a very weak currency in order to stimulate growth. This dilemma has been a major cause of trouble in the EuroZone, and so far two countries have suffered sovereign default—Greece and Ireland.

So, what is the solution? Some believe that struggling countries such as Greece and Ireland must be allowed to peacefully exit the EuroZone, reinstitute and devalue their national currencies, and then attempt to regain a competitive edge economically. Other possible solutions are being debated behind closed doors, but the consensus opinion, largely, is that something must be done to help these struggling EuroZone countries regain a competitive edge economically.

by Jonny Pean

Personal Finance means focus on you and your money. In order to manage your money the best way possible you need to learn more and gain knowledge about mortgages, banks, savings, credit cards, taxes and estate planning. Your money deserves time and training. Managing personal finance may be confusing and hence you need to remain calm and composed. If you find that you are not quickly reaching your financial goals then your expenses must be trimmed down. But you will also lose motivation if the budget is hard. The ideal fighting shows how well your personal finance is being managed. Make an itemization of your expenses and then calculate it. This helps you to plan a better budget for future expenditure. A cash flow statement can also help you to form an evaluation of your expenses and personal income. It is always better to do the budgeting on your own terms. Many of you are dependent on financial advisors for managing your financial affairs or personal finance. It’s better to research about your advisor before giving him or her responsibility.

Your Personal Finance can be broadly divided into categories like Banking and Budgeting, Loans, Insurance, Career and Work, Real Estate, Lifelong Investing and Retirement. Here are a few guidelines which must be followed for managing personal finance:

·  Mortgage Mistake must be Avoided
·  A Sound Retirement Plan must be prepared
·  Student Loans must be repaid
·  Always Budget When Broke
·  Cut Down your Car Insurance Costs
·  Save on Gas, Utility Bill, Energy Wasters at Home
·  Get a good Mortgage deal
·  Advantage of Homeowner Tax Breaks must be utilized
·  Cut the costs of college
·  Unnecessary expenses must be avoided

You need to make a strong resolution for improving your personal finance. Here are the top keys to help you move ahead strong financially:

1.     Get the Desired Pay Package and Reduce the Expenditure: Do not spend more than you earn and make sure you are aware of your job’s worth in the market.

2.     Budget must be fixed: A budget plan is compulsory for going ahead with your personal finance.

3.     Credit Card must be paid off: The debt on your credit card is a big obstacle while moving forward financially. So just pay off the balance as soon as possible.

4.     A Golden Retirement Plan must be formulated: A retirement plan is very important in your life. While managing your personal finance you must contribute to your retirement plan and it should be worthwhile.

5.     Make a Savings Plan: A minimum of 5 to 10 percent of your pay package must be kept aside for savings every month.

6.     Employment Benefits must be maximized: Do not forget to maximize your employment benefits and take advantage of those where you can save money.

7.     Insurance Coverage must be reviewed: You must have enough insurance coverage for your dependents.

8.     Your will must be updated: Protect your loved ones with your will.

You can simply choose one at a time and then set goals for incorporating them into your lifestyle. Money errors are too common and therefore be a careful manager of your personal finance.

by Jonny Pean