All posts by Mits Josh

Useful Ways To Manage Your Finance

Managing your financeManaging your finance is not a subject which is taught in school, it is something which you have to deal with on your own in later stage of your life. There are many people who doesn’t put much focus on managing your finance and then regret at some point of time when face bad financial condition and don’t have any backup plan to get over that situation. Managing your finance in a proper manner is helpful in present time also and even at the time of retirement also. When you are young and new to the subject of managing your finance, you never think of planning for retirement but it is a matter to be thought of at early stage only. Thus while managing your finance, plan out for your retirement also and make a proper balance between your present savings and savings for future. Here are some of the useful ways to manage your finance and have a soughed financial life.

  • When you can borrow or rent, don’t buy

If you want a big savings you need to focus on small things. It is said that every single drop makes a river. Thus while savings also every single penny contributes to a big savings. How many times have you bought a DVD just to see once and then leave to collect dust in some corner? How many times have you bought some magazine or book or any tool or any of the party supply or any athletic equipment and used just once then it is being wasted in your basement. Thus such things can be rented in very small amount instead of buying it at a higher price. Such small things contributes a lot in making your expenses high and reducing your savings a lot. Don’t just blindly follow the rule, think wisely while managing your finance as there are certain things which have repeated use and in that case it is advisable to buy those things instead of renting it.

  • Pay high down payment on mortgage

It is one of the essential tips to manage your finance. Buying a home is by far the biggest investment for many people in their lives and hence it is one of the major places where you need to manage your finance. Thus it is very essential to plan out your mortgage money wisely. If you have enough money then you should definitely go for making a high down payment while buying a home. Paying high down payment will reduce your interest rates for the rest of your installments and hence it will make a good amount of savings.

  • Make your retirement savings

This is one of the very essential ways to manage your finance. Retirement planning is very important to start at an early age as this is the age where you can earn more, save more and use less. You are free of responsibilities at an early age and hence you can contribute nice amount for your retirement and plan it effectively.

Types Of Mortgage

MortgageMortgage means a simple way to get the money by lending your property. There can be varied reasons for getting a mortgage and in similar manner there are also varied options for mortgage. When it comes to types of mortgage, people think there are there are no options and carry on with the one they know from years. But it is not true there are many types of mortgage which you are unaware of and you should probably have knowledge of. By going for the wrong type of mortgage and not paying it off in time, you can have a big loss and hence it is advisable to study in deep all the types of mortgage and then come to the conclusion as to which type of mortgage is fair enough and will be able to paid off by you in time. Here are some of the types of mortgage which can help you if you want to mortgage your property.

  • Simple mortgage

It is a type of mortgage where the possession of the property is not passed but still the mortgagor is impliedly liable to pay off the mortgage money and also have an implied acceptance that in case when he fails to pay the mortgage money in due time then the mortgaged property will be sold out and the proceeds will be taken off by the mortgagee. Here there is one benefit that the possession of the property is not transferred and hence the mortgagor can use the money along with getting the money to be used. Such type of mortgage is considered as simple mortgage.

  • Mortgage by conditional sale

It is a type of mortgage where the mortgagor ostensibly sells off the mortgaged property.

  • On the condition that when there will be default in payment of money till the specific date, the sale will become obsolete.
  • On a condition that when total payment of such mortgage is made, the sale will become void.
  • On a condition that when the payment is made of the mortgaged property, the buyer will transfer the property back to the seller.
  • Usufructuary mortgage

It is a type of mortgage where the mortgagor delivers the possession of the mortgaged property to the mortgagee and assigns him the right to retain such mortgaged property till the payment of the mortgage is not completed. Here the mortgagee can take any kind of profit or interest or rent arising from such property and consider as a part of the payment of the mortgaged money. Such type of mortgage is considered as usufractuary mortgage.

  • English mortgage

English mortgage is a type of mortgage where the mortgagor transfers the mortgaged property totally to the mortgagee and also transfers all the rights of the property in favor of mortgagee. But there lies a condition in such type of transfer that the mortgagee has to transfer the property back to the mortgagor when the payment of such mortgage is paid off. Such type of mortgage is known as English mortgage.

Points To Consider Before Applying For Home Loan

Home loanReal estate developers are working very hard to make your dream of owning a house come true. Most of the people go for home loan while buying a new home as it saves you from the tax and also reduces the burden of paying the entire amount of loan altogether. There are many points which are to be considered before applying for home loan. If you are not active before applying for home loan then you can make mistake and have to pay more interest and other payments then you actually need to pay.

  • Know your loan eligibility

One of the important factors to be considered before applying for home loan knows your loan eligibility. The amount of loan which banks sanction depends upon your past record of repayment of loans, your income and your credit card dues. Before applying for home loan, you must check whether you have been regular in paying all your dues and previously taken loans. You must have a check that how much amount you can spare on the monthly EMIs from your regular income. Before you apply for home loan, you must be aware that this much specific amount you are going to spend on EMI. If you are able to spare this amount then only apply for home loan. Usually banks offer loan up to the 80% of the total cost of your property but this is not compulsory.

  • Check your credit score

Before applying for home loan, you must have a check on your credit score. You will get your credit score between the scale of 300 and 900 points. These points are assigned to you on the basis of your existing liabilities and loans, loan repayments, bank account statement, credit card bill payment and also on the base that how much time you have applied for the loan till now. This all things are taken into consideration while applying for home loan. For knowing the credit score, if you are paying processing fees to three to four banks to know the maximum limit of yours then you can be called as credit hungry according to CIBIL and the chances of getting loan is reduced. This CIBIL rating gives the net salary excluding your variable heads and existing EMIs and loans as it predicts the vital capacity of the person applying for home loan to repay it.

  • Choose your lender

A very important factor to be considered while applying for home loan is your lender. Make sure to do a detailed research while finding a financing company or bank while taking home loan. Also see what are the terms and conditions of giving a loan and also see the interest rate and tenure of the loan. Interest rate is very important factor but this does not mean that you should avoid other factors like customer service or the charges if there is early termination of the home loan. Check these details before you choose the lender for your home loan.

Credit Habits To Develop at 20

Credit Habits at 20 Teenage, it’s the age generally preferred for fun, enjoyment and living your life in craziest ways. But after teenage when you enter into twenties, it’s high time you need to start to plan your saving habits and credit tendency. You need to have an idea regarding your credit habits and mold it into right direction and make it stable if it’s not. Here are 5 simple ways of credit habits one should develop at their 20’s and maintain it lifetime.

  • Educate Yourself

Credit, it’s not such a thing with which you want to take a chance with or conduct experiment with. You become double sure with your credit related things. It’s like a cup of tea to kill your credit health rather than to improve or maintain it. You are availed with only one chance to build your credit history from scratch. Thus before starting up with your credit habits, it’s pretty much important to get proper knowledge and education regarding what factors to go in your credit score and how to read your credit report.

If you are reading this you must be encouraged to take the first step. However it’s very simple to get educated as internet offers you with all available information you want.  You should have information regarding ins and outs of your credit and also about personal finance. It’s not like you have to be some expert but have just that much education which can help you get a good start with your credit journey.

  • Monitor Your Credit

Having a track on your credit reports and scores could be beneficial to you in 2 ways. The first thing is that it gives you a good opportunity to learn how your credit reacts to different financial action.  Tracking your score helps you to see firsthand how it affects each time you do something credit related like applying for a new loan or paying down your balances. Second benefit you get from tracking your score is that you can detect fraud and errors on your report and act to it promptly.

Now you would be wondering how you would do this. It is very easy. You can get paid and free service that allows you to monitor your credit reports or scores. Just check whether it is free or payable. You can also get free copy of your credit report every year from AnnualCreditReport.com.

  • Build A Crisis Fund

As proved by the survey conducted by the February Bank rate, 21 percent of people in the age group of 18 to 29 years have more credit card debt than they have in their crisis fund. This is irrelevant and improper as financial emergency can occur anytime and you must have  savings for that emergency. If you don’t have such savings then it can cause trouble and can deteriorate your credit tendency.

You can create a crisis fund by putting aside a specific amount from your each pay and over a time it would be a good amount which can save you in trouble situations.

  • Pay Your Bills On Time

One of the best alternatives to build credit is timely payment. Your credit score is measured by repayment of debt in a timely manner. For calculating credit score, the most highly weighted factor is your on time payment percentage.  Just a single late payment can detain your credit health for years.

Generally people have a problem of forgetting their dates of payment. You can try out setting up calendar reminders to email or text themselves when credit cards due date is coming up. If you have several numbers of credit cards and have a problem keeping track of all of them, then you can fix a common date for all of them making it easier for you.  You can also enroll in autopay services. If none of these work out, you can pay your all bills on first day of every month.

  • Limit Your spending

The most difficult habit to cultivate among all of this is to limit your spending when you already know you have a good amount of income, you cannot resist yourself from limiting your spending. But you must be aware that loans and credit cards are not free money. You have to repay them back. Failure in repaying may result in suffering of your credit score.

You must be thinking how to limit spending? Before purchasing ask yourself a question do you really need it or without purchasing also it can work. This will help to reduce extra purchases.