Over the past eight years I have been buying and selling items on Irfanview (Windows only, Mac users can use iPhoto). Once open, go to Image > Resize / Resample and click the 800×600 option, then OK. Save these to a new location. Since eBay only gives you one photo for free, use a free web photo hosting solution for the other images to be listed in your auction. Some of these sites are:
They all provide code to place them into eBay auctions and are free to use. I’ve been using xs.to for sometime and never had a problem. Simple and straight forward.
Spell Check
Take two minutes and reread what you wrote, make sure it makes sense and there are no spelling errors. Not only will this make the auction more valid for your potential buyer, it is the right thing to do.
Explain Shipping & Handling Fees Up Front
When listing your auction, eBay has the boxes you can use for shipping, flat rate, by weight, etc. I think it is also worth listing in the auction itself what the shipping & handling fees are, where you will and won’t ship to, what the insurance options are, etc.
My experience is that buyers prefer flat rate shipping, so you will need to determine what your item weighs packed up and what the rate is from who you will use as a shipper (UPS, USPS, FedEx, etc.). I usually add $1-4 to that to cover my costs of the box, packing material and gas to drive to where I’m mailing it from. Insurance is an option in the listing process, you the seller decide if you want to make it required, optional or not available. I usually use the optional portion, 50% of the time the buyer will want it, and the other half they won’t.
Create a Disclaimer
At the bottom of all my auctions I use something similar to the following:
I have listed this item to the best of my ability. If you have any questions, please contact me with at least 24 hours prior to the auction ending so I may reply to them. Payment is expected within three days of the auction ending, PayPal is the preferred method. The item will be shipped within one business day after payment has been received. Insurance is optional, however it is recommended. Please leave positive feedback for me when the item arrives, I will do the same for after you have left feedback for me. If for some reason there is an issue with the item when it arrives, please contact me ASAP to address it.
Reply to All Questions in a Timely Manner
Common sense here folks. Don’t list an item and go on vacation. Do check your email and eBay account at least twice a day to look for questions. Reply to them in a timely manner and address each question to the best of your ability.
Ship Fast
If you can, ship an item the day of payment or the following day. This will help build a positive feedback rating for you as a fast shipper, something a lot of buyers look for. No one wants to pay for something on Monday to find out it hasn’t shipped out till Friday. Take this into consideration when listing your item.
Use PayPal
PayPal allows instant payment and the ability for you the seller to receive credit card payments. By doing so, you have now enabled someone who may not have the cash to purchase your item to do so by putting it on their credit card. Additionally, it allows you to track payments and create shipping labels for both USPS and UPS. Using the built-in option for shipping labels will also send notification to the buyer that the item has shipped and what the tracking number is, one less thing you need to do. There are too many instances where checks and money orders bounce, get lost in the mail, etc. to make them worth while. Additionally, it adds time until the buyer receives their item.
Promote Your Auction
On any given day there are millions of items listed. Just having a clever title isn’t good enough anymore. You need to tell people you have an auction. Get on the social network of your choice and make a blog or bulletin post announcing your auctions. Don’t go around spamming people, but once when you list the auction and another the day before the auction ends can help drive extra traffic to your auctions.
Lastly, build relationships. Use the feedback options on all auctions, making sure to emphasize what the buyer has done right, using terms like fast payment or painless transaction. This will make you seem much more human and more buyers will want to deal with you. Should an issue arise, do everything in your power to resolve it as fast as possible.
It may not be a match for Tony Stark’s futuristic mansion on a cliff (that went crumbling down at the hands of the Mandarin in Iron Man 3), but Tony Stark’s cabin from Avengers: Endgame is now an iconic movie setting that will stick with Marvel fans forever.
The lakeside cabin where Tony Stark retreats after the devastating events of Infinity War, looking to give daughter Morgan a normal upbringing instead of exposing her to the chaos of superhero life, serves as a backdrop to crucial scenes in the movie — culminating with what is now arguably one the most dramatic moments in the entire Marvel universe: Tony Stark’s funeral.
So I found Tony Starks Cabin on Airbnb if anyone needs a vacation to cope after Endgame. from r/marvelstudios
Listed on Airbnb by a secretive host who simply goes by “Ed,” the famous cabin was spotted by some eagle-eyed Reddit users, who quickly took to the website to compare screenshots from the movie to the photos in the listing.
Not only that, but movie goers have quickly spotted that the cabin used in the Avengers movie had an even more recent big-screen appearance.
Image: Tony Stark’s cabin in Avengers: Endgame. Credit: Airbnb
Once the property was up on reddit, it didn’t take long for people to figure out that Avengers: Endgame was not the only summer blockbuster filmed at this location.
The same cabin was used in Godzilla: Kind of the Monsters, as Kyle Chandler’s home, where he retreats after the life-altering events that take place in 2014’s Godzilla (starting to see a pattern here).
Tony Stark’s lakeside cabin (IRL)
Set on private property in the middle of the beautiful Bouckaert Farms, Tony Stark’s cabin is located in Chattahoochee Hills — a small, private community of less than 2,500 people in Fulton County, Georgia.
And that fits the narrative pretty well, as Tony’s new home in Avengers: Endgame is a secluded cabin where he retreats with Pepper Potts following the emotional aftermath of Infinity War, a quiet and peaceful place where the two can raise their daughter, Morgan.
Yet not remote enough so that people can’t reach him with ease (you know, in case the world needs saving again).
The property comes with three bedrooms, four beds, three baths, and it can accommodate up to six people.
It’s about a 20-min drive away from Atlanta International airport — which probably made it a lot easier to get the entire cast of Endgame together for Stark’s funeral. Or, if you’re Mark Ruffalo or Tom Holland, ‘the wedding scene’.
How to book a stay at the Avengers cabin
Well, this is a short “how to”: you can simply book the cabin on Airbnb here. Thought it’s worth mentioning that now, since the cat is out of the bag, availabilities may be a little scarce, so make sure to move fast.
As demand increases, so do the rates. At this time, the rate for a one-night stay is $1,066, but may go up considerably.
The cabin definitely plays up its Endgame connection and doesn’t just settle for being a pretty damn nice cabin.
“You have full use of the cabin and the back porch for hanging out,” the listing says, “taking photos and sending text/emails to friends regarding your stay in the Marvel Avengers Endgame cabin. Stand where hero’s/stars stood for the wreath floating in the lake just a few feet away from you.”
Before booking a stay here, you might feel the need to double-check whether this truly is the same cabin used in Avengers: Endgame. And if the listing description is not credible enough, reddit comes to the rescue once again.
Minutes after the link to the property was posted, redditors flocked to the listing and scoured the photos to identify similarities between the Airbnb cabin and scenes of Stark’s house in the movie. It didn’t take them long to find them:
Now, if you do end up booking the Avengers: Endgame cabin for a stay and you do some recon of your own, matching movie scenes with your surroundings, make sure to drop us a line at [email protected]. We’d love to see them!
More homes from movies
Placing the Avengers Tower on the NYC Skyline: The Real Building that Stands in its Place The Ever-Changing Vision Residence: Magical Interiors Through the Decades Does the X-Mansion — Charles Xavier’s Ancestral Home — from X-Men Exist in Real Life?Is it Real? Skyfall, James Bond’s Childhood Home in the Scottish Highlands
After some investigation, I saw the problem: the electric company charged a $200 deposit fee for starting electric service at our new house.
The deposit was supposed to be waived, since we had a good payment history with the electric company. Only here it was, on our bill. And since we’re on autopay, the electric company had already collected payment.
After calling and sorting out the matter, the electric company said they’d give us a credit on our next bill.
That wasn’t a solution I exactly loved, since it meant that our bills would be higher than usual that month. Maybe I should’ve fought them on that, but I didn’t. Also, we could cover the overcharge easily enough, so I figured, what’s the difference?
But it did make me think about whether automatic payments are really such a great idea.
Autopay Doesn’t Mean Autopilot
Autopay is great because it’s convenient, requiring no action on our part to avoid late payment fees. There’s nothing to mail and no logins or passwords to remember. I never have to wonder, “Did I remember to pay the electric bill?”
“Autopay is also an especially appealing feature for young adults just starting out in the real world because it makes it very easy to pay the bills,” says Robert Long, managing editor for Kiplinger.com. “But it can be a trap.”
For instance, bills that have a variable rate, like your electric bill, can be especially tricky to track if you schedule automatic payments to cover them. “My bill might be $50 at one time of the year or as high as $200 other times of the year, depending on how much I’m using the heat or AC,” says Long.
And if a couple of bills are higher than anticipated, you could end up with a low bank balance, or even overdraft charges.
“Giving debtors access to your banking account can open you up to accidental overcharges, whether it’s a legitimate bill that’s just higher than you expected or it’s an accidental billing error where you’re being charged a little or a lot more that you should be,” says Long.
For instance, you might have a recurring annual contract, like a gym membership, that you didn’t want to renew but forgot to cancel. Or maybe you’re disputing a bill, but in the meantime the company is still charging you and taking the money out of your account.
“Autopay can be too automatic,” says Long. “It puts control into the hands of the debtor because they can go into your account. Maybe one time out of 100, there’s an accidental overcharge or you’re getting scammed, but either way it takes that control out of your hands.”
It’s easy to set it and forget it
So why is a service that’s supposed to make life easier so problematic?
For one thing, many of us treat bills on autopay like a Ron Popeil rotisserie oven — we set them and forget them.
For instance, I like not worrying about my electric bill. But I admit that I’m not disciplined about checking the bill every month. And would I notice if the overcharge hadn’t been so large? Probably not. But with no real action required on my part to pay the bill, when life gets hectic, I don’t always review the charges like I should.
Two solutions to autopay problems
As with most things in life, you have to do what works for you, and autopay is no different. As Kiplinger writers Amanda Lilly and Stacy Rapacon discussed in a recent article, there are pros and cons to automatic payments, and sometimes what works for you changes as your situation changes.
So let’s talk about a couple of options.
Option #1: If you hate the idea of letting a creditor have access to your money, then skip autopay altogether. You can still enjoy many of the conveniences of autopay with online bill payment.
“Personally, I recommend going with online bill payment, but not autopay,” says Long. “Autopay puts control in hands of debtors, but with online bill pay, you’re in control.”
Option #2: If you’re concerned about avoiding late fees, use autopay, but use it wisely.
Here are a few ways to use autopay carefully:
Pay with a credit card first. If, and only if, you use credit cards and pay your balance off every month, consider autopaying with a credit card when possible. It gives you extra time to dispute charges and keeps your cash safe in the meantime.
Only autopay set charges and minimum payments. If you’re worried about too many higher-than-expected variable bills socking it to your balance, don’t put those bills on autopay. Just set up automatic payments for the non-variable bills like Netflix. It’s also pretty low-risk to set up autopay for minimum payments, such as on credit cards, to avoid accidental late fees.
Mark electronic bills as high priority. Flag them, filter them, or tag them — just have a system to mark your electronic bills as high priority. It’s easy to let bills get piled under other emails, which means you’ll forget to review them.
Opt for payment notifications. When you set up autopay for a bill, many times you’ll have the option to be notified of the bill via text or email before the payment goes through. So opt in! It’s just one extra assurance that you’ll know what you’re about to pay.
Keep an eye on your bank account. There are a few things you can do to protect your bank account. One, double-check the automatic payments on your bank statement every month to make sure they’re for the right amounts. Two, “make sure you’ve got enough cushion in your account so you won’t get hit with overdraft fees,” says Long. This is especially important if you have variable bills on autopay. And three, sign up for balance notifications to make sure you don’t overdraw. “Set up automatic alerts from your bank or a site like Mint to get an alert when your account dips below a certain level,” says Long.
For some people, automatic bill pay causes more stress. For others, it gives peace of mind. Personally, I’m liking the idea of taking my variable-rate bills off autopay. That way I won’t find out that I’ve been overcharged after the fact. I’ll just pay online each month, which always prompts me to review the bill.
So readers, weigh in! Do you pay your bills manually, automatically, or on a case-by-case basis? What tips or cautions can you add?
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Do you want to create a personal financial statement, but aren’t sure where to start?
According to Mint.com, over 65% of people have no clue how they spent money last month. So, you can probably be pretty sure even less know how their personal finance situation.
With rising costs for essentials like housing and education due to inflation, there is no better time to get an accurate picture of your current situation today.
If you’re wondering how your finances measure up, a Personal Financial Statement can be an invaluable tool in helping you understand where you stand financially and prepare for changes ahead.
This article will walk through creating a sample personal financial statement template with examples of what this document might look like based on your situation.
A personal financial statement isn’t just for your loan applications anymore, it’s an opportunity for transparency in your finances too!
What is a personal financial statement?
A personal financial statement is a document that summarizes your assets, liabilities, and net worth. A PFS can help you understand your financial health so you can make informed decisions about your money.
A personal financial statement template will typically include three sections:
Assets: This section will list all of the money and property you own.
Liabilities: This section will list all of the money you owe.
Net Worth: This section will calculate your net worth by subtracting your total liabilities from your total assets.
Your personal financial statement should be updated on a regular basis, typically once a year. This will help you track your progress and make sure you’re on track to reach your financial goals.
What are the benefits of creating a personal financial statement?
There are many great benefits of a personal financial statement.
By creating a personal financial statement, you can see at a glance how much money you have coming in, going out, and what your net worth is. This information can be extremely helpful in making financial decisions and setting goals.
Benefit #1 – Understand Your Financial Situation
This is why you must spend the extra couple of minutes to create a personal financial statement form.
Most importantly, you get a better understanding of your financial situation. This includes seeing where your money is going each month and how much debt you have.
What we call around here at Money Bliss – the 1000-foot look from above. The outsider’s perspective of what is going on with your finances.
Benefit #2 – Helps you track your progress
When it comes to personal finance, one of the best things you can do is keep track of your progress.
Tracking your progress should be important to you! By seeing everything laid out in front of you, it becomes much easier to make informed financial decisions that will help improve your overall financial picture.
Benefit # 3- Find some areas of improvement
Since a personal financial statement is a document that summarizes your income, expenses, assets, and liabilities in one place it helps you see the financial big picture. Thus, spotting areas for improvement are easier.
For example, if you see that you are spending too much money on non-essential items, you can make changes to improve your financial health.
Benefit #4 – Useful Tool to Set Goals
Next, it can help you set goals. Once you see where you stand financially, you can set goals for paying off debt or saving more money each month.
This aids you to make better financial decisions by providing a clear picture of your financial situation.
Benefit #5 – Snapshot to help you stay motivated
Creating a personal financial statement can be incredibly helpful in staying motivated to save money and achieve your financial goals. Seeing your progress in black and white (or, more accurately, green and red) can be a strong motivator to keep going.
Using a personal finance statement is especially helpful if you’re working towards paying off debt or saving for a specific goal. It can be difficult to stay motivated when you’re not seeing progress, but seeing the numbers going down (or up) can give you the boost you need to keep going.
Benefit #6 – Monitor your financial health
Creating a personal financial statement can help you monitor your financial health and make informed decisions about your spending and saving habits.
If you see that your expenses are consistently exceeding your income, for example, you may need to make some changes to ensure that you are able to meet your long-term financial goals.
Easier to spot opportunities to save money or invest in assets that will grow in value over time.
Monitoring your financial health on a regular basis can help you avoid debt problems and keep track of your progress toward financial goals.
What are the types of personal financial statements?
A personal financial statement is a form or spreadsheet detailing a person’s overall financial health. This statement is typically used to apply for business loans or other forms of financing. There are two types of personal financial statements:
The first type is the balance sheet, which lists a person’s assets and liabilities.
The second type is the income statement, which details a person’s income and expenses.
The balance sheet provides an overview of a person’s financial situation at a particular point in time, while the income statement shows how much money a person has coming in and going out over a period of time.
Both types of statements are important in helping lenders evaluate a borrower’s ability to repay a loan. As well as for you to monitor your personal situation.
What are the components of a personal financial statement?
A personal financial statement is not just a document that shows how much money you have in your bank account. It also includes other important components to show a well-rounded picture.
Most people know that a personal finance statement includes income, assets, and liabilities. But did you know there are actually four main components of a personal financial statement?
A personal financial statement varies from a traditional balance sheet that is used for a company.
Income
Your income is everything you earn in a year from all sources, including your job, investments, alimony, and more.
You should list all of your sources of income on your personal financial statement so you have a clear picture of what you’re bringing in each month.
Include all sources of income, even if they are irregular or one-time payments.
List after-tax income.
If you are married or have a partner, include their income as well.
Update your income regularly to reflect any changes (e.g., new job, raise, bonus).
This will help you make informed decisions about your spending and saving.
Expenses
This is the money you spend each month on things like your mortgage or rent, car payments, groceries, and other necessary expenses.
Here are over 100 personal budget categories for various expenses.
Assets
Assets are everything you own like your home equity or the value of your car and can use to pay your debts. This includes cash, savings, investments, property, and possessions.
Calculate your total assets by adding up the value of all your cash, savings, investments, property, and possessions.
So, is a car an asset? Well it depends if there is a loan against it.
Liabilities
Your liabilities are everything you owe money on. This includes, but is not limited to:
Mortgage
Car loan
Student loans
Credit card debt
Any other personal loans
Your liabilities also include any money you may owe in taxes.
How to create a personal financial statement – Part 1
There are a few key things you need to know in order to create a personal financial statement.
The first part includes what is needed for your net worth – assets and liabilities. The second part includes your current income, expenditures, and savings.
We will show you next how to collect all of this information, then you can start to work on creating a personal financial statement.
Step #1 – Determine your current assets and business profit
The first is your current assets. Your assets are everything you own and can use to pay your debts. This includes your savings, your home equity, and any investments you have. You will need to know the value of all of these things in order to create an accurate personal finance statement.
To determine the value of your assets, start by looking at your savings. This can be any money you have in the bank, including checking, savings, and money market accounts. Add up the total balance of all these accounts to get your total savings.
Next, determine the value of your home equity. This is the difference between what your home is worth and how much you still owe on it. To calculate this, look up the current value of your home and subtract any outstanding mortgage or other loan balances from it. This will give you an estimate of how much equity you have in your home.
Finally, add up the values of any investments you have. These can include stocks, bonds, mutual funds, and other types of investment accounts. Once you have all these values totaled up, this will give you an estimate of your current assets.
Step #2 – Determine your current liabilities
Your current liabilities are all of the debts and financial obligations that you currently have.
This can include things like credit card debt, car loans, student loans, and any other type of loan that you are currently paying off.
To get an accurate picture of your current liabilities, you will need to gather up all of your bills and statements so that you can see exactly how much you owe.
Step #3 – Determine your net worth
Your net worth is your assets – your savings, your home equity, and your stocks and investments – minus your liabilities. To calculate it, simply subtract your total liabilities from your total assets. This will give you your net worth.
Your net worth is a good indicator of your financial health.
It can help you make decisions about saving and investing, and it can also be a useful tool for budgeting. If you want to improve your financial health, focus on increasing your net worth by saving more money and investing in assets that will grow in value over time.
Your goal is to double your liquid net worth quickly.
How to create a personal financial statement – Part 2
Now, you have developed your next worth statement. The next step in creating a personal financial statement is to determine your monthly cash flow of money or annual cash flow.
This second part includes your current income, expenditures, and savings.
Step #1 – Determine your monthly income
Firstly, you will need your income flow section. This could come from your pay stubs, or if you are self-employed, your profit and loss statements.
Your monthly income includes all money that you earn in a month, including salary, wages, tips, commissions, child support, alimony, and any other regular payments that you receive.
Step #2 – Determine your monthly expenses
The next piece is to determine your monthly expenses. This includes things like your mortgage or rent, car payments, credit card bills, and any other regular expenses. You’ll also want to factor in occasional expenses, like doctor’s appointments or annual membership fees.
Your expenses can be divided into two categories: fixed and variable.
Fixed expenses are those that remain the same each month, such as rent or mortgage payments, car insurance, and minimum credit card payments. Variable expenses change from month to month and can include items such as groceries, utility bills, entertainment, and clothing.
Step #3 – Determine your monthly savings
Typically, most advice will leave out monthly savings. However, this. is a critical piece to learning how to FI – financial independence.
Once you have both your income and expense information, you can begin to calculate your monthly savings. To do this, simply take your total income and subtract your total expenses. The remaining amount is what you have available to save each month.
Maybe you just calculated this and realize you have a negative number (meaning you spend more than you earn each month), then you will need to make some changes in order to improve your financial situation.
It is important to note that a personal financial statement is not static.
Your income and expenses can change from month-to-month, so it is important to recalculate your statement on a regular basis. Additionally, as you begin to save more money each month, the amount available for savings will increase as well.
How to use a personal finance statement template
A personal financial statement is a snapshot of your financial health at a given point in time. It lists your assets, liabilities, and net worth so you can see the big picture of your finances.
You can use a personal finance statement template to track your progress over time and make changes to improve your financial health.
Here’s how to use a personal finance statement template:
Enter your information into the template. This includes details about your income, expenses, debts, and assets.
Review your numbers and calculate your net worth. This is the difference between your total assets and total liabilities.
Watch for comparisons. Compare your net worth from one period to another to track your progress over time.
Make tweaks. Make changes in areas where you want to improve, such as increasing savings or paying down debt.
Repeat steps 1-4 periodically. Then you can see how well you’re doing and make necessary changes
How to interpret a personal finance statement
A personal financial statement is a document that shows your current financial health. It lists your assets and liabilities, giving you a clear picture of your net worth.
Positive net worth means you have more assets than debt.
Negative net worth means you have more debt than assets.
Your personal financial statement will help you to set financial goals and track your progress over time. For example, if you want to become debt-free within five years, you can use your statement to create a budget and track your progress each year.
If you have a negative net worth, don’t panic! You can improve your financial health by paying off debts and building up your savings.
Creating a budget will help you make the most of your income and make headway on your financial goals.
How to use a personal financial statement to make financial decisions?
This is the important piece of becoming a millionaire.
A personal financial statement can help you see where your money is going each month and make changes to ensure that you are saving enough for your future goals.
Way #1 – Look at your current financial situation
Your personal financial statement is a record of your income and expenses over a period of time. This information can be used to make financial decisions, such as whether to save money or invest in a new business venture.
If you are looking to save money, you will want to compare your total income to your total expenses. If your expenses are greater than your income, you will need to find ways to reduce your spending. You may also want to consider investing in a savings account or retirement fund.
If you are looking to invest in a new business venture, you will want to assess your current financial situation. You will need to determine how much money you can afford to invest and whether or not the venture is likely to be successful.
Doing this analysis before making any decisions can help you avoid making costly mistakes.
Way #2 – Determine your financial goals
There are a few key things to keep in mind when you’re determining your financial goals.
First, you need to think about your short-term and long-term goals.
Your short-term goals might include things like saving up for a down payment on a house or car or paying off high-interest debt.
Your long-term goals might include things like saving for retirement or sending your kids to college.
Once you’ve determined your goals, you need to think about how much money you’ll need to reach them. This is where a personal financial statement can come in handy.
This information can help you figure out how much money you have available to put towards your financial goals.
Once you have an idea of how much money you need to reach your financial goals, the next step is to develop a plan for how you’re going to save that money. This might involve setting up a budget and sticking to it, investing in a specific savings account or investment account, or taking advantage of employer matching programs if they’re available.
Making smart financial decisions is important for achieving both your short-term and long-term goals. A personal financial statement can help you determine how much money you need to reach your goals, and develop a plan for saving that money.
Way #3 – Make a budget
Your personal financial statement can be a helpful tool when you’re trying to make a budget. This document lists your income and expenses and can give you a clear picture of your financial situation.
To use your personal financial statement to make a budget:
Look at your overall income and expenses. This will give you an idea of where your money is going each month.
What are Necessary Expenses? Determine which expenses are necessary and which ones you can cut back on.
Prioritize your List. Make a list of your monthly income and expenses, with the necessary expenses first. And drop the expenses at the bottom of the list.
How Much is Left? Determine how much money you have left over each month after paying for necessities. This is the money you can use for savings or other goals.
Adjust your budget as needed based on changes in your income or expenses.
Way #4 – Invest in yourself
There are a lot of things you can do to invest in yourself, but one of the smartest things you can do is to invest in your personal finance education.
In fact, one of the popular millionaire quotes from Warren Buffet is:
Invest in yourself as much as possible.
Warren Buffet
Investing in yourself is one of the smartest things you can do.
Way #5 – Stay disciplined
Making financial decisions can be difficult, but if you have a personal financial statement, it can help you stay disciplined.
A personal financial statement is a document that shows your income, expenses, and assets. It can help you track your spending and see where you can save money. That my friend is black and white information.
Making financial decisions can be difficult, but if you have a personal financial statement, it can help you stay disciplined and on track.
What are some common mistakes to avoid when creating a personal finance statement?
There are many common mistakes people make when creating a personal financial statement. This can lead to an inaccurate picture of your financial situation and make it difficult to make informed decisions about your finances.
Any of these common mistakes can also lead to problems down the road because you will be unable to meet your financial obligations.
Not including all sources of income
Not including all debts and expenses
Forgetting to track new sources of income
Overstating or understating expenses
Not properly categorizing expenses
Forgetting to update (or review) the statement regularly
Not tracking progress over time
Too scared to seek professional help if needed.
By avoiding these common mistakes, you can create a personal financial statement that accurately reflects your financial situation and helps you make better decisions about your money.
How often should a personal finance statement be updated?
You should update your personal finance statement at least once a year.
However, you may want to update it more frequently if you have significant changes in your income or expenses. For example, you may want to update your personal finance statement after you get a raise or buy a new car.
A Personal Financial Statement Template Example
A personal financial statement is a document that summarizes your financial health.
It includes information about your income, expenses, debts, and assets. This information can be used to make informed decisions about your finances.
There are many personal finance statement templates available online. Some banks and financial institutions offer their own templates. You can also find templates in our free resource library. Once you find a template you like, you can download it and fill it out with your own information.
When filling out a personal financial statement template, be sure to include accurate and up-to-date information.
This will give you the most accurate picture of your financial health. Review your statements regularly to track your progress and make changes as needed.
Time to Create A Sample Personal Financial Statement
When creating a personal financial statement, it is important to include all sources of income, not just your salary. This includes any freelance work, investments, or other forms of passive income. Additionally, make sure to include any government benefits or assistance you receive.
Excluding all sources of income will give you an inaccurate picture of your financial situation and make it difficult to create a realistic budget.
This is something you need to spend dedicated time doing to create a personal financial statement worksheet.
Over time, this wealth management tool will help you to become the next millionaire.
Know someone else that needs this, too? Then, please share!!
Peter Anderson is a Christian, husband to his beautiful wife Maria, and father to his 2 children. He loves reading and writing about personal finance, and also enjoys a good board game every now and again. You can find out more about him on the about page. Don’t forget to say hi on Pinterest, Twitter or Facebook!
By Peter Anderson2 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited October 8, 2012.
Yesterday I talked about how we’ll be contributing to a Roth IRA first this year as part of our retirement plan. I believe that unless you have a company matching 401k contribution, a Roth IRA will usually have more investment options, have less restrictions, and because it’s done with post tax dollars, you’ll never have to pay taxes on the contributions or the earnings. There are a lot of great reasons to invest in a Roth IRA, but once we reach the $5000 contribution limit for our Roth IRA, we also wanted to diversify our tax situation and invest in my company 401k as well.
Today I thought I’d talk briefly about some of the 401k rules, regulations and contribution limits.
What Is The 401(k)?
So what exactly is a 401(k)? It is a retirement savings account type. From Wikipedia:
A 401(k) is a type of retirement savings account in the United States, which takes its name from subsection 401(k) of the Internal Revenue Code. 401(k)s were first widely adopted as retirement plans for American workers, beginning in the 1980s. The 401(k) emerged as an alternative to the traditional retirement pension, which was paid by employers. Employer contributions with the 401(k) can vary, but in general the 401(k) had the effect of shifting the burden for retirement savings to workers themselves. In 2011, about 60% of American households nearing retirement age have 401(k)-type accounts.
401(k) Contribution Limits
The 401(k) account type has contribution limits associated with it. The 401k contribution limits have remain unchanged from 2010 to 2011. Here is a table showing the maximum yearly contribution for the 401k account type every year since 2007.
Year
401k Contribution Limit
2007
$15,500
2008
$15,500
2009
$16,500
2010
$16,500
2011
$16,500
2012
$17,000
2013
$17,500
2014
$17,500
2015
$18,000
2016
$18,000
2017
$18,000
2018
$18,500
2019
$19,000
2020
$19,500
2021
$19,500
2022
$20,500
2023
$22,500
As you can see it has been increased by $1000 over the past 5 years. No significant changes are expected for 2012, but we’ll have to wait til the end of the year to find out for sure.
401(k) Employer Contribution Limits
Many employers will also offer a contribution to employee’s 401(k) accounts. Currently the employer can contribute to an employee’s 401(k), only subject to the maximum contribution of $49,000 (for 2011) for the employee.
Highly compensated employees may be subject to other restrictions put in place by an employer’s plan.
401k Catch-Up Contribution Limits
For workers who will be 50 years or older by the end of the 2011 tax year, you will also be eligible to make catch-up contributions to your 401k. It should be noted that not all employer sponsored plans allow this, so you’ll need to check with your company’s plan to make sure it is allowed. Here is a table with the current year’s 401k catch-up contribution limits.
Year
401k Catch-Up Contribution Limit
2007-2008
$5000
2009-2014
$5500
2015-2019
$6000
2020-2022
$6500
2023
$7500
Do Employer Matching Contributions Affect Your Limit?
A lot of employers will offer contributions or match your contributions to your 401(k), up to a certain percentage. The question is – do those contributions affect the employee’s contribution limit, or is it a separate limit? Thankfully it is a separate limit.
Example: If someone makes $100,000 in pre-tax compensation, and they and their employer both contribute the maximum, they could have $16,500 contributed by the employee, and $6,000 by the employer for a total of $22,500. If they’re over 50 they could also make catch up contributions for a total of $28,000.
Other Things To Consider
There are other things you may need to consider with your company’s 401(k) plan. For example, if you’re a highly compensated individual at your company you may be subject to separate contribution limits. Some plans may allow you to make post tax contributions to your account. Currently the max you can contribute to a401(k) plan is $49,000 or 100% of your compensation, whichever is less.
Are you currently contributing to a 401(k) plan through your work? Are you contributing to the maximum? Do you get a company match? Tell us what you think about the limits, and if you’ll be able to reach them.
This is Jeff Rose, goodfinancialcents.com. Welcome everybody! I have a little neat, exciting thing to share here. I was interviewed by Laura Adams a.k.a. The Money Girl. She is actually a contributor to the blog, goodfinancialcents.com so be sure to check for her articles. I had the pleasure of being interviewed by her for a little Skype interview that we did. This was our first attempt. We had a little static near the end but we are learning. I’m getting all my technical glitches out of the way. She interviewed me about interviewing a financial planner for your own services. At the end I shared some tips of the five mistakes to avoid when saving for retirement or financial planning. Be sure to check out the interview. Hope you enjoy. See you later.
LAURA: Hi everybody. This is Laura Adams from The Money Girl podcast and author of Money Girl: Smart Moves to Grow Rich. Today I am here with Jeff Rose. I am so excited to be interviewing him. He is a financial planner. He has a business that is called Alliance Wealth Management. I thought it might be a good idea to find out from Jeff what some of the typical questions are that he gets about financial planning. Jeff, why don’t you start out and just tell us what you do and what type of customers you have?
JEFF: Sure. I have been a financial planner for just over eight years or so and along the way I’ve helped many different types of clients. Being younger, I got started in the business when I was 24 so I had a lot of younger clients that just wanted to start saving for retirement, start saving for their kid’s college education. Also, I had a lot of the baby boomer generation that were approaching retirement and had a large nest egg like their 401K or their pensions that they’d been saving into their entire lives and now they had the biggest decision money wise to make in their lives what to do with it. They entrusted me to basically devise an income plan for them with that money so that they wouldn’t out live it. That is really where, I wouldn’t say my focus has turned, but just my clientele has turned that way through referrals and through all the different events that I do. Right now I service probably about 80% of the baby boomer plus generation. Most of these individuals I would say are people that know they need to be invested. They know they need to be in the market in some way just to keep up with the cost of living and to keep up with their desires in the golden years. They just don’t have the time and they really don’t trust themselves with that amount of money so they want to rely on an expert like myself. I say expert. I’m not trying to toot my own horn, but they want to rely on a professional to take care of them.
Who Needs a Financial Planner?
LAURA: Absolutely, yeah. I’m curious what your opinion might be about whether everyone needs a financial planner. Does everyone need one or are some people able to do it themselves?
JEFF: That is a great question. I actually just took a poll of my email newsletter because I was really curious. I just had a hunch. I talk to people all the time that don’t have a financial advisor. They’ve been doing it on their own or they are not doing anything at all. I really was just curious so I emailed my subscribers just curious to know the feedback. The questions I asked were: Do you have a financial advisor. Yes or no. Why or why not. Of all the people that responded there was only about 30% or so that had a financial advisor. That was kind of my hunch thinking that most people don’t. The most common reason was trust. They didn’t trust them. They maybe had some bad stories from friends or family members or they had a personal experience where they had a financial advisor that sold them something that shouldn’t have been sold to them, and they just didn’t trust that direction. Other people just didn’t know if they needed one yet. They didn’t feel like they had enough money to get started. I think in all those situations, maybe you don’t need a full-time financial planner to manage the investments on an ongoing basis, but I think it’s like a doctor relationship. You don’t need to go to the doctor every single day, but it’s always advisable to go in at least once a year to have your annual checkup. Why wouldn’t you do that with your financial life just to make sure that what you have in your 401K is where it needs to be. Make sure that whatever investments you’ve been doing in your own brokerage account are in the right funds, stocks, or ETFs. Make sure you have enough life insurance. I think everybody needs to have some type of advisor, maybe not an ongoing basis, but at least someone to checkup on and give them that annual checkup.
Different Types of Advisors
LAURA: Yeah, that’s a good way to put it. What are the different types of advisors that people might find out there if they go online and do a search for somebody? Tell us a little bit about the different types of advisors that people maybe would or wouldn’t want to use depending on their situation.
JEFF: It gets so confusing now because right now everybody is a financial advisor. Everybody has that title. They used to be a stock broker, investment advisor, insurance agent. Right now I talk to everybody and they say I’m a financial advisor. I’m like what does that really mean? The different types would be if you go to a financial advisor at an insurance company or insurance agency. It has just been my experience that they are just going to lead in with some type of insurance product. That could be an annuity. It could be some type of whole life or cash value life insurance. Personally I’m not a big fan. I don’t want to start harping down on that, but those are the ones that I would stay away initially. I’m not saying life insurance is bad. Just be conscious of what their pitching to you and what they are trying to put you into. If you go to any type of big brokerage firm it could be anywhere from a commissioned advisor where they are going to sell you a mutual fund or an ETF, and they are going to earn a commission off that product. They also could have a fee-based relationship or advisory relationship where you are paying an ongoing fee, a percentage of your total investments with them. Just make sure you are clear on that. Where the waters get muddy there is you might pay an ongoing fee for your account with the firm, but there also might be transaction charges within the account. There could be internal expenses within the investments that you own. The next thing you know you think you’re paying 1% and you’re really paying 2½% and that really starts eating away at your money and it’s hard for you to grow it. That’s why my heart goes out to the consumer because there is so many different ways. If you don’t ask the right questions, if you don’t know what to ask, you’re just basically at the mercy of this advisor. Just be abreast of that. The last one -we talked about doing the annual checkup- there are a lot of fee only advisors that basically just charge you by the hour. These are the folks that will just meet with you and analyze your situation and give you a game plan. I think maybe even a financial coach maybe would fall in that category of someone just giving them guidance on where they need to be.
LAURA: Great! So what type of advisor are you? Tell me a little bit about how you or your firm charges people. What’s a typical customer’s fee structure, or what compensation do you get for a typical customer?
JEFF: Sure. That’s a great question. Just to give you an insight, I worked for the big brokerage firm so I’ve been that direction. I know that structure. Then we left and we started an independent firm. When I became independent I had the ability to do commission, and I had the ability to do fee. I was doing that for about three years, and the conversations got so confusing because it depended on the client and their situation. I liked it because in some cases maybe a commission relationship was better for the client if they weren’t doing a lot of active trading. They just bought one thing every once in a while. The majority of my clients I did on the advisory relationship, the fee based where I was managing their portfolio helping derive income stream. Whenever I was having that conversation with people I was like here I’m doing this and here I’m doing this. I just got frustrated with it and really wanted to have a more stream lined presentation or approach when talking to people. Recently, I just created my own registered investment advisory firm where now it’s completely a fee-based relationship. The fee ranges anywhere from 1-1½% as my ongoing fee. That is all encompassing. There’s no more transactions charges. There’s no IRA fees. At this time that covers doing a financial plan for the client and updating that on an annual basis. Basically the client can call me, not preferably on the weekends, but they can call me whenever they need to if they have a question about anything. I help clients figure out how much they need to save for their kid’s college. I’ll take a look at their 401K. That’s not even part of what I’m managing, but I’m going to take a look at it for them just to make sure it’s where it needs to be.
The Big Misconception
LAURA: Excellent! That actually sounds like a pretty good deal compared to some of the fees that I’ve heard. As a registered investment advisor what type of responsibility do you have to the client? There’s a lot of confusion in the market place about what is a financial advisor’s responsibility versus a broker’s responsibility in terms of recommending a stock or an exchange-traded fund. I think it’s important that people get to know an advisor who can give them some level of responsibility versus just throwing out a stock here and there as a good pick that they think is hot right now.
JEFF: The big thing, the consumer may never understand this, I know the profession or our industry is trying to do a better job of making them understand, but basically the two key words here are suitability and fiduciary. With the previous relationship it was more of a suitability issue where I would take a look at a client’s situation and then I would recommend an investment that I felt was suitable for their needs. It may or may not have been the right thing, but that is what I felt based on the situation. Now as a registered advisor, as a fiduciary I am solely responsible for my client’s best interests. I have to make sure I am doing what is absolutely right for them and I am absorbing that role. Before I did an RIA I saw that word thrown out there a lot and know a lot of other RIAs were throwing it out there and I’m like what does that really mean. Now that I finally get it and grasp it it’s really important to me. When I talk to other attorneys and other professionals and you talk about the word fiduciary to them they get it. They understand what that means and that client-advisor relationship. There’s a tremendous level of respect for it.
Women and Investing
LAURA: Yeah, I come from the real-estate world years ago and fiduciary relationships with clients were very important in that industry as well. So yeah, I want to make sure everybody gets that. If you go to a broker, they may or may not have a responsibility to look out for your best interest basically, but a registered advisor (RA or RIA), that’s part of the title. That’s part of the designation, that they have a higher level of responsibility. I think that is a great designation to look for in an advisor.
Also Jeff, I wanted to ask you maybe a little bit about the differences you see in men and women that come to you. I get a lot of questions, different types of questions from men and women about finances and planning, and I am wondering if you see a big difference working with a couple or just a husband or just a wife. Is there a big difference in the way that men and women approach money and financial planning?
JEFF: Yeah, there is much more to it with women and financial challenges. Not to say it’s 100%, but it’s so funny when I look at my baby boomer generation of husbands and wives versus the Gen X generation of clients husbands and wives. In my baby boomer generation I have husbands that worked 10-12 hour days, and the wife was the homemaker where they basically have relied on the husband to make all the big money decisions. I always make sure I bring in both clients. She’s still a part of the equation because that is the root of happiness or unhappiness if we haven’t had the proper discussion. I want to make sure I want to understand what her thoughts and concerns are. For the most part they’ve relied completely on the husband. Whereas my Gen X I’m seeing more of the wives now having more of a say in the money matters. The experience I’ve had in my own office is where wives are now saying we need to do this, we need to do this. I think that sound good, that sounds good, but I see more of a leadership role than I have ever seen before, especially with the baby boomer generation. I think that is neat to see that.
LAURA: Yeah, it is. I do a lot of one on one coaching with folks and the majority of them are women who tend to be, like you said, taking more of a leadership role for whatever reason. Maybe they are going through a divorce or they’re just waking up and realizing hey, I need to be involved. I need to know what’s going on for my best interests. I think it’s great that younger women and younger couples are approaching money much differently than older generations, and it’s a really good thing.
JEFF: Another thing I will say I have noticed, and I think it is pretty well universal is that women generally tend to be more conservative in their investment tolerance. Even in that leadership role the husband wants to make 12-15% return whereas the wife generally is more on the conservative side, which could be good or bad. I just want to make sure we’re where we need to be. That’s another thing I have noticed is that women are generally more conservative.
LAURA: Yeah definitely. I think women have that bag-lady syndrome fear that we always hear. Sometimes women are really afraid of the consequences of poor planning. That’s a wonderful thing, but you can take that to an extreme where you don’t invest aggressively enough and therefore, you’re not going to hit your retirement goal. I think having a balance there between a man and a woman’s perspective really probably ends up helping overall if you blend both of those perspectives. That’s great if people work on money together.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
When you apply for life insurance coverage, your insurance agent should be very inquisitive.
They will want to ask you by your overall health, if you smoke and your family history.
One question that gets asked that many people that are applying for life insurance forget that will be asked is “How is your driving record?”.
Uh-oh…..
If you drive like a Nascar driver and have been ticket for it, it could cost you.
Not only does your car insurance go up, but also so does your life insurance! Life insurance is one of the most important purchases that you’ll ever make, and your driving record could have a huge impact on that.
Regardless of your lead foot, it’s important that you get a quality life insurance policy, and we can help you get that protection at an affordable price.
Yes, Your Driving Record Affects Life Insurance Rates
This may come as a shock to many, who may not believe it, but it is true. Life insurance rates and your driving record do have one thing in common: Death!
That might seem a tad over-dramatic to some, but death is certainly something to worry about on the road. When a driver does not care about the harm that dangerous driving causes, life insurance companies begin to realize they may not have a lot of time on this earth.
When you drive with only the end point and some fun in mind, that is why your driving record affects life insurance rates. This may seem unfair to some, but it is a real worry for insurance companies. Just like a disease or other serious health condition, bad driving raises your chance of death. When you have a higher likelihood of death, your life insurance rates go up. Just like if you were completely healthy and took steps to ensure you stayed alive and well for years to come, your life insurance rates would drop.
Your driving record affects life insurance acceptability, too. If you are a driver with a problematic driving history, they may consider you too much of a risk to insure. A person with a family they want to protect, even after they have entered the grave, will see this as a problem. They want to get good rates, a good company, and money for their family if they meet their demise.
Recent Driving History
A good thing for many drivers out there is that the top life insurance companies peek at your recent history, not everything. Life insurance rates and your driving record are a big worry, but so is whether or not you will get life insurance to begin with.
Any person out there who thinks they are safe to get life insurance simply because they are healthy needs to look into everything.
How Much Does Your Life Insurance Go Up Because Of Speeding Tickets?
Recently, I had a gentleman that was applying for a 20 year term life insurance policy. I asked the usual questions and everything seemed to be on track for a Preferred Best rating. I then asked about his driving record. There was a pause. Followed by a “Well, let me tell you about that…..”
The guy hadn’t had a speeding ticket in over a decade but happened to get his first one about 6 months ago. Now one ticket wouldn’t have been an issue. But he got not just one but two more tickets…..in the same week!
Having 3 speeding tickets on your driving record in one week does not do well for your life insurance premium. Especially when they occurred in the past 6 months.
His premium which would have been $1490 per year, ballooned to $1,913 per year. As you can see, your driving record does matter.
More than likely, you haven’t gotten three speeding tickets in one week. That’s a rare case that I may never run into again, but if you do have a couple of tickets in the last six months, then you could be facing higher premiums.
As long as your driving record isn’t filled with speeding tickets and accidents, then it isn’t going to impact your premiums too drastically. You’ll still be able to get affordable life insurance coverage, even if you’ve been caught going slightly higher than the speed limit.
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Getting Affordable Life Insurance Coverage
There are a couple of ways to trim down your life insurance premiums. Making a few simple changes to how you live will contribute money back into your wallet.
Always remember to slow down on your drive home from work. We’ve already shown that speeding tickets can cause your premiums to go up, which means that it’s important that you’re driving as safely as possible. Taking a little longer to get to work in the morning, could help you save money on your life insurance coverage.
Our second suggestion is to quit tobacco use. Did you know smokers are going to pay twice as much for life insurance for comparable coverage. Kicking that bad habit could make you rich! Well not really, but it some great motivation!
This suggestion is pretty simple, improve your health. If you think of it as a waterfall, the healthier you get the better your quality of life and the lower your chances are of getting a disease later on in life. Combining all of this could lead to great results on your medical exam and at the bottom you’re gonna get a lower rate from the insurer. So start that diet and exercise you’ve always wanted to. Now is the time to prepare for all the stuff you’ll go through once your application is signed.
No carrier sees your lifestyle, age or driving record the same. Whats the harm in getting more than one quote? Don’t fall prey to sales tactics from individual agencies; instead look to agencies like us, independent, we work with many carriers in the industry and have the same relationship with each one. Our quotes are full-service and you’ll always get more information that way. Your time is precious. Spend them at home with your kids, friends, and family instead of taking the time doing the work for yourself. We will spend our time working hard on your behalf to help you achieve your financial goals.
Term Life Rates and Your Driving Record
Your life insurance rates and your driving record are things you have to consider. A bad driving record negatively affects your life insurance rate, as well as your acceptability.
If you have a family to take care of, or are hoping to sometime soon, then you need to look at how you drive. Bad driving does increase your chance of death, and life insurance companies know that.
We know you don’t want your dependents to suffer paying for final expenses.
Stop thinking your driving record is going to lower your shot at purchasing great coverage at a low price. Get quality coverage starting today!
Doctors often check the calcification levels in your arteries as this helps predict your risk of heart disease.
They can use noninvasive tests like the Electron Beam CT (EBCT) and Multislice CT (MSCT) to determine your calcium scores.
If you’ve ever had one of these tests, insurance companies will be able to see the results and this will be a factor for your insurance rating.
To help you out, we’ve created this article to guide you through the life insurance process as an applicant with high calcium scores.
Life Insurance Underwriting for Calcium Scores
After you’ve had your calcium score tested, the life insurance agent will ask several questions about the results:
When did you have your EBCT or MSCT?
What was your total calcium artery score?
Have you had any other heart tests like a stress test, stress echocardiogram and/or coronary angiogram? What were the results of these tests?
Do you have any other risk factors for heart disease?
Do you have any other serious health problems like cancer?
Are you taking any prescriptions?
While there are no specific medications to treat your calcium levels, you could be taking various heart medications. All of the common prescriptions are not going to cause you to be declined.
Be sure to answer all the questions on your application truthfully with as much information as possible. Insurance underwriters get nervous when an application seems incomplete and might give a worse rating than you deserve.
Life Insurance Quotes for Calcium Scores
Doctors test your calcium score because this information is a good predictor of future heart problems. They have found that the higher your calcium score, the more likely your arteries will build plaque which could lead to blockages and heart problems. As a result, a higher calcium score is worse for your insurance rating.
Insurance companies also consider your age as they are more tolerant of higher calcium scores for older applicants. Every company has different categories, but here are the most common:
Preferred Plus: Possible for an applicant that shows no sign of calcification or an applicant older than 35 with very little calcification, usually a CACS score lower than 10. Applicant should have no risk factors for heart disease.
Preferred: Also possible for an applicant that shows no sign of calcification or an applicant older than 35 with very little calcification, a CACS score lower than 10. It’s a bit easier to get this rating than Preferred Plus. Applicants can have some minor issues like being overweight or high cholesterol.
Standard: Applicants that are older than 35 and have low levels of calcium could also qualify for a standard rating. This would be CACS levels anywhere from 5 to 50. Older applicants have more leeway and could qualify for a standard rating with higher calcium levels. Applicants who are younger than 35 cannot show any signs of calcification.
Table Rating (substandard): Applicants showing signs of calcification are most likely to get a rated policy. Applicants younger than 35 must have CACS levels lower than 10 to qualify for a rated policy. Applicants between 35 and 44 must have CACS levels lower than 400, applicants between 45 and 64 must have CACS levels below 1,000, and while there is no CACS limit for applicants older than 65. The lower your CACS levels, the better your rating will be. Your table rating will also depend on your other risk factors for heart disease and overall health.
Declines: Applicants with CACS levels above the accepted limit for their age group will be denied a policy. Also, applicants with other heart issues or risk factors may also be denied as these problems combined with calcification could be too much for an insurance company to accept the risk.
Calcium Score Life Insurance Case Studies
Each person is different, and everyone has different health situations. To give you a rough idea of what you can expect, here are some examples of clients we’ve worked with in the past.
Case Study 1: Male, 38 y/o, non-smoker, test for low levels of calcium at 34, was denied for coverage.
He had calcium levels of 34, and CACS of 11. When he applied after his test, he was declined. He assumed he wouldn’t be able to get life insurance.
After talking to us, he realized that he just applied too young given his calcium levels. Now that he was in a different age category, his chances were better. We also referred him to a company that regularly handles applicants with high calcium levels and was more accepting of this risk factor. By trying again this time, the applicant received a rated policy.
Case Study #2: Female, 58. Diagnosed with CACS of 500 at 54, former smoker and used to be overweight, now taking medication for cholesterol and high blood pressure.
For years, she was in poor health. She was overweight, smoked, and wasn’t treating her high cholesterol and blood pressure. After an EBCT showed that her calcium levels were quite high, she decided to improve her lifestyle. She lost weight, quit smoking, and started taking the medications and this made a big difference for her health.
After she made those changes, she applied again, assume she would get an excellent rate. However, she applied but was rejected. Even though this applicant had an acceptable calcium score for her age group. We knew the insurance company must be too focused on her past health.
All she had to do was get a statement from her physician which showed her improved lifestyle and better health. After that, she got a rated policy. Easy as that.
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Life Insurance with High Calcium Score
If you have a high calcium score, then you’re going to get a higher rating category. Before you apply, you should do some of the work we mention above, like improving your health.
Aside from improving your health, the best way to secure cheap coverage is to compare carriers. Each company will offer different rate classes to applicants with higher calcium scores. You want to find the best company, obviously, but how do you find it?
Save more, spend smarter, and make your money go further
Refinancing your mortgage is a great way to save money. As both a real estate investor and homeowner, I’ve refinanced mortgages about ten times in the last ten years. My wife and I are in the process of refinancing our mortgage on our primary residence now, for the second time in 12 months.
Through this process, including one failed attempt at a refi, I’ve learned a lot about how the process works. I’ve learned that it’s easy to mess up a home refinance. So, with that in mind, here are seven ways to wreck your next mortgage refinance.
Failing to Shop Around for the Best Rates
While home mortgage rates typically fall within a tight range from one bank to the next, they can and do vary. Even a small variance of 25 basis points can have a significant financial impact over the course of a 15 or 30-year mortgage. It’s important to compare mortgage rates before locking in a loan.
Failing to Consider Fees
Costs are a critical component in determining whether it makes sense to refinance a mortgage. In some cases, banks will attempt to make their rates look very attractive by adding in significant costs to the loan. As a result, make sure you keep a close eye on the fees charged for the loan. Fortunately, costs for different loans are easy to compare because banks are required to provide you with a “Good Faith Estimate” that itemizes all of the costs of the loan.
Neglecting Your Credit Score
Your FICO credit score plays a significant role in determining the interest rate you can get. As a general rule, a FICO score in the mid to high 700’s will secure the lowest mortgage rates available, so long as you otherwise qualify for the loan. As your credit score goes down, however, the interest rates can rise significantly. If your credit is less than stellar, you should considering improving your FICO score before refinancing your mortgage if at all possible.
Acquiring More Credit During the Refinance
I learned this one the hard way. During our current refinance, we applied for and obtained a new credit card. While this did not scuttle our loan application, it required significant documentation about the new card and any balances on the card. In some cases, new credit or debt obtained after you have been approved for the loan could wreck the refinance. Avoid new credit if at all possible, and at a minimum, discuss the issue with your bank or mortgage broker before applying.
Ignoring Your Savings Account
I was surprised by how much money we need to have available for closing. While the fees for our loan are minimal, we are required to bring enough cash for prepaid items (insurance and taxes), as well as interest on the loan from the date of closing to the end of the month. These items can easily add up to several thousand dollars and banks are required to document where you obtained the cash for closing. In our case, they required a copy of our most recent bank statement along with an explanation of the source of any large deposit. As a result, it’s important to maintain sufficient savings to handle the closing costs.
Changing Jobs During the Refinance
Sometimes we have no choice but to change jobs and in some cases, an opportunity comes along that’s too good to pass up. If you are in the middle of a refinance, keep in mind that a new job will, at a minimum, add a lot of documentation requirements to your loan. If you can hold off until closing, that’s ideal. Otherwise, like taking on new credit, speak to your mortgage broker about the situation.
Yo-yo Refinancing
This is my term for those that refinance their house repeatedly. Having refinanced our house twice in 12 months, one could easily accuse us of committing this sin (a 30-year fixed rate south of 4% was too hard to pass up!). The key to remember, however, is that refinancing back into a 30-year mortgage adds a lot of time and interest to your mortgage. Before you know it, you’ll find yourself at the doorstep of retirement with a hefty mortgage still remaining on your home. One alternative is to refinance into a 15 or 20-year mortgage if you can handle the payments. You can compare the differences between a 15 and 30-year mortgage here.
We stuck with a 30-year mortgage, but my wife has informed me that it’s the last time she is agreeing to a refinance. I sure hope rates don’t go below 3 percent!
This article comes from Rob Berger, the founder of the popular personal finance blog, the Dough Roller, and credit card comparison site, Credit Card Offers IQ.
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