Tips of the week:
1. You should better avoid cosigning a loan for anyone, even your family. It may change your relationship with the borrower if he or she doesn't pay.
Co-signing a loan involves some risks. If you have a good credit score, you can co-sign for a mortgage loan for your near and dear ones. But, if the person for whom you co-sign defaults in making payments, the responsibility to repay the loan lies upon you. You may not however be willing to take that responsibility. In that situation, the relationship between you and the person for whom you co-signed may become bitter. So, before co-signing a loan, think twice.
2. Consider event passes and gift vouchers at special prices as gift for your near and dear ones!
On the festive occasion, it is a common practice to give gifts to your near and dear ones. But, it is not prudent to spend extravagantly to buy gifts for your near and dear ones. You have to think over the budget aspect too. You may consider gift vouchers and event passes at special prices as gifts for your near and dear ones. This helps you keep a lid on your expenses.
3. Spread joy and smiles to make this Christmas wonderful for your near and dear ones.
Christmas is a festival of joy and happiness. It is not only of extravagant gifts and showing of opulence. It order to make it really a big occasion, you should not spend excessively. Instead, the festive occasion should be more of sharing joy and smiles for your near and dear ones.
4. Patience can make the difference between your dream home and a remorseful story of other buyers.
Home buying is a big decision. Perhaps, it is the biggest financial decision in the lives of many of you. While buying your dream home, you should not take any move in a haste. Rather, your home buying move should be very measured, calculated and wise one. You should be very patient and should carefully check whether you can afford to make the payments. You should not over-purchase and out of the excitement of owning your home, you should not make any wrong move.
5. Rather than resolutions, concentrate on goals! Resolutions can be flimsy but goals are specific and measurable.
Resolutions are fine. But, more important is to set some realistic goals and work accordingly. Make honest efforts so that you can fulfill your goals.
Queries of the week:
1. What financial goals have you achieved in 2013?
In 2013, I concentrated on controlling my expenses. I set a plan at the beginning of 2013 so that my expenses do not exceed a certain limit. I was successful in doing that. It helped me save a decent amount of money in 2013.
2. What gifts do you want your Santa to give you this Christmas?
I do not crave for extravagant gift. I want a small, simple and beautiful gift from Santa.
3. How did you save money this Christmas?
This time I set a budget for the occasion of Christmas. I made a conscious effort so that my expenses do not exceed my budget.
4. How do you plan to save money while on vacation on the New Year's eve?
This time I am planning to make it a simple, small and family affair. I have set a budget for this occasion. I will make conscious effort so that I don't exceed the budgetary limit set by me.
5. How will you take care of budgeting during the New Year's eve?
I have set a budget for the occasion of New Year. I will put conscious efforts so that I do not cross the budgetary limit.
Active rain posts of the week:
1. Acquaint with five tax deductions
There are some legal ways to deduct the amount of income taxes that you have to pay. Depending upon the tax codes, a variety of expenses can be deducted from your taxable income. Some of these tax deduction schemes are aimed at encouraging the taxpayers in the country to participate in various programs that have some social benefits. The contributions that you make in traditional Individual Retirement Account (IRA) are tax deductible. The expenses that you make to bring environment-friendly changes to your home and charitable donations are also deductible from your taxable income. There are some other tax deduction schemes too. You have to be aware of these schemes.
2. 4 Types of proration used in real estate transactions
There are some expenses in a real estate transaction that have to be shared between the home buyers and the sellers. These expenses are prorated proportionately between the buyer and the seller at the time of closing of the mortgage loan. Expenses are prorated in such a way so that that each party pays the fair share. Some of the commonly prorated items are property tax, homeowners insurance and mortgage interest. It is recommended that before signing a purchase deal, you should carefully read the fine prints of proration. This is important because you may think that the proration settlement is biased against you and you may take steps to change it.