Income Planning Tips That You Shouldn’t Miss

Whether you hire a top notch financial consultant like Jeff Viveros Corpus Christi to help you with your income planning or not depends really on how serious you are about securing your future. It is always a good idea to consult someone who has seen the financial industry evolve through ups and downs, having been around for longer than what a lot of financial instruments have been around for. Moreover, there are many online services too, if you want to locate consultants by location or by name. Planning what to do with your income involves a lot of steps. Some believe it is all about saving what you can; however, that isn’t true.

When you consult a financial planner, you get down to the basics of what you are earning and how you should use it for securing your future. Always set aside part of your income for your liabilities. This could be home loan interest, vehicle loan interest or any other financial commitments that you have. Once you have set aside your expenses, what remains has to be carefully used. If you have debt, taking the decision between repaying it first and then saving or managing savings and liabilities simultaneously is a question only a consultant can answer based on your situation.

Custom advice from someone who has been through many case studies will help you juggle your finances better. Depending on how many dependents you have and what your responsibilities are, you have to pick the right insurance policy. If you have a mortgage, you need to be insured. A health insurance for the entire family is another requirement. You have to also save for your kids’ education and for your own medical expenses in the future. Investment retirement schemes therefore need to be considered as well at the time of financial planning.

A consultant can help you divide your funds proportionately between insurance and retirement policy premiums and immediate investments for bigger gains. This could be the stock market or real estate property investments that promise good rents on a monthly basis. Taxation plays a huge role in creating a foolproof plan as well. There are a lot of tax exemptions that go unused because individuals are not aware of their existence. A tax consultant can help you pick the right investments or products that can help you cut down your taxes lawfully and enhance your savings further.

Financial services consultants work both on an hourly basis as well as on a long term basis for clients. Your planning should also depend on when you want to take a retirement and what you intend to do after that. Starting a business after an early retirement might need you to save more aggressively and invest on short term products like stock more often. Similarly, products that assure steady returns and mutual funds that offer bigger returns offer choices that you have to pick based on your risk appetite. Your portfolio and assets will also help giving you more confidence when it comes to picking your investments.

TOUGH TO REPAY PAYDAY LOANS

Payday loans are quite interesting in the way they are designed. They are extremely easy to get and are extremely hard to pay back. That is why payday loan lenders accept the risk that is involved in these loans. Bad credit payday loans, in particular, are quite risky and stand a high chance of default. This is because one can never be sure whether the individual has a good credit history or not if the credit check has been bypassed for convenience. Payday lenders sometimes have trouble collecting the debt as well. In spite of all the risk, the lenders still make it easy for individuals to take these loans for the huge benefits they bring.

Firstly, even genuine payday loans come with a processing fee and a high interest rate. In fact, high is an understatement considering that the interests are as high as 400% APR. The only saving grace for individuals who apply for payday loan online is that the interest is charged only on few days. The due date is usually about a few days away and has to be paid by the next payday. So, the interest is charged only for a maximum or 20 to 30 days. However, when individuals miss that due date, they are basically staring down the barrel of a gun. That is because there are penalties which add up on the debt. In some cases, the interest goes up as well, especially if individuals aren’t careful reviewing the fine print.

What makes these loans risky is that once the interest adds up, the debt starts becoming unmanageable. In other words, the debt keeps going up with time, almost spiraling out of control in a couple of months. Those who have to take the loan have to stand back and wonder at times if they will be able to pay it back at the first place. The lenders will actually do the income check and ask for the proof. Nevertheless, it is tough financially for them unless it is a one-off situation. Therefore individuals should assess their situation perfectly before deciding to apply for the loan. The last thing one wants is to take one loan to pay back another.