Your driving history has a pivotal role too play in case of car insurance cost. The insurance carriers keep a close watch on the type pf driver you are. They will consider any accident you have met with in the last three years and shall also takes the record of how many miles you drive every year. These factors define the nature of a driver and how likely he is to make a claim and thus shall reduce the cost in case the driver is found to be safe driving person.

The gender type is yet another factor that defines the insurance rate. If you are a woman hen you are less likely to pay a high cost as females don’t meet with accidents very often and are tagged as safe drivers. The age is also a factor and young drivers pay high on their car insurance as average young drivers re found to drive recklessly. As is implied senior citizens enjoy playing less on their car insurance just because of their elderly age. The marital status is also another factor and a married person with identical driving record with an unmarried person is likely to pay less for car insurance.

Now the aforesaid are simply factual description about car insurance rate. The question still remains as to how you can change the general equation of car insurance and make it work in your favor.  Choosing the car type is in your hand and try selecting a car that is not as sports or luxury cars since insurance cost on these cars is pretty high.

The credit score counts while calculating for the insurance premiums as the insurer do consider your credit score to decide upon your car insurance rate. Furthermore the insurance coverage chosen makes the person pay less or more in car insurance.  If you go for a high overage and low deductible you are likely to pay more that you do the opposite.

Finally the discount on the insurance policy is one more thing that can pull down your car insurance rates. But to get it you need to have a good rapport with the insurer.

Tax saving along with returns is now possible with investment instruments. Investment instruments are the best options since they ensure guaranteed returns while giving you a scope to save your taxes. If you are planning to invest a total sum equal to at least one lack rupees in these investment instruments, then be sure that this entire amount will get removed from your taxable income.

However, there is short twist in this tale. The type of investment instrument you select will determine your financial planning to a great extent.

Investors have diverse risk tolerance level as there are risk-lovers as well as risk-averters. Investment instruments come in different shapes and sizes to fit the risk tolerance level of an investor. In case you have the potential to take risks then you can get high yielding instruments like equity products. On the contrary, if your risk tolerance level is low and you wish to invest conservatively, then opt for debt products that come with tax benefits.

The following information will give you a clear picture of the amount of tax saving you can receive.

Under the section 80 C of Income tax 1961, a tax payer is eligible for an exemption on income tax of up to a value of 1 lakh rupees annually. There are several investment instruments that can fetch a tax payer an emption of this galore such as Public Provident Fund (PPF), tax-saving bank fixed deposits, Employee Provident Fund (EPF), Senior Citizens Savings schemes, National Savings Certificates (NSC) and (ELSS) Equity linked Saving Schemes of mutual funds.

The schemes offer the following benefits for you.

In case of PPF or Public Provident Fund, 8% interest rate is offered. The investment in this case is restricted to 70,000 per year and the investment tenure is fixed at 15 years. The interest received is deducted from the taxable income of an investor.

EPF or Employment Provident Fund scheme offers 9.5% interest rate and this rate is applicable for 2010-11 sessions only.

National Savings Certificate or NSC will give you an interest rate of 8% compounded every 6 months. The investment tenure in this case is 6 years.

Senior Citizen Saving scheme has an interest rate of 9 %, which is payable every three months. Only citizens who are above 60 years to have taken voluntary retirement from their job are eligible for this scheme.

Equity linked Saving Schemes or ELSS offer high returns on investment. However, this scheme is subject to market risks. Lock-in period in this scheme starts from three years.

These saving schemes will attract many investors; however a note on the investor’s advisors is necessary before investing. An investor must not forget to measure his or her risk tolerance level while investing in these schemes. Nevertheless, peace of mind is essential when you are investing. Hence, ignorance about the risk tolerance level may give sleepless nights to a risk-averter.

But how do you save up money like the numbers some people tout? Look, I never said retirement planning is easy; I did say it can be done though with some discipline, dedication and diligence. That’s the only 3D you need.

Just how much do you need to save?

Imagine you plan to work from 20 till you’re 60 (for calculation’s sake). What that means is you have to work for 40 years to get through potentially 20 to 30 years of your life. So your nest egg will be used up for almost as long as you will take to build it up. Now, let’s assume some more things. For one, let’s say your income matches the rate of inflation perfectly. Let’s also assume the same for your investments. Let’s also assume that your lifestyle remains unchanged. If that does happen, you will have to save something like 35% of your income each year. And that’s something not many people do.  Most people only save 5-6% per year, so you now see where the problem lies.

Retirement is getting earlier for most

Generations before us saved more and worked for more years than us and yet we want to retire earlier than them despite doing none of these things. We have a very materialistic mind and if you’re banking on your investments getting you to the Promised Land, you could be in serious trouble. Save more, invest better and work longer if you have to. Mind you, it doesn’t have to be a full-time job; even working as a consultant or part-time counts. Once you feel confident about money, you can always stop working and do whatever you want to.

Don’t ask when you can retire. Instead, know what you want to do and start planning towards it, whatever it may be.

Here’s one way that’s easy to work with. If you settle your credit card bill in full on time each and every month, travel rewards credit cards are the way to go for you. They’re the fastest way to rack up those miles and redeem them for free benefits and what not. Most of these credit card companies will offer you sign-up bonuses after you make your first purchase so these points too can be redeemed by way of frequent flier miles later on. Mind you, these credit card companies bank on you to pay late so don’t give them that pleasure. That’s their way of trying to get money from you since they will spend on covering your miles, so be careful not to overspend. Just pay up on time and you will emerge a winner. That is all. And yes, take those travel rewards with you while laughing at the poor credit card company that signed you up.

Social media is also a great way to accrue travel rewards. There are applications available for iOS and Android that allow you to earn travel rewards while checking in at multiple locations in the real world. An example of this is Topguest, which works with Foursquare and Facebook Places to offer you travel rewards over time that can be cashed in. If you’re really desperate, you can simply buy miles directly from the airline and use it to get a free flight or an upgrade. If you travel rewards account is close to the value you need, this could cost you less than just simply buying the upgrade or the ticket itself.

What next?

Life is much, much more than a system of checks and balances. Indeed, often times we forget that as we scrape the bottom of the barrel for that extra bit of money that we so desperately want, the average man always talking about freeing himself from the yoke of debt and being penny wise all the time. But why stay a slave to your income, why not make it work better for you? If you have a thoroughbred in the stable, you don’t keep him locked away for good, for he will wither away. Years upon years of saving have brought you to this point and it is now time for you to make the next step in your evolution; making your money work better for you.

Mind you, our suggestions are by no means comprehensive or definitive; it’s just a push in the right direction for you. Where you choose to go from there is entirely left to your own volition.

Travel the world

The entire world is but a book, and he who has not traveled has read but a page. Quite a few love to travel as and when they get the time to get out, but many equally prefer to just laze about and do absolutely nothing in their free time. While we agree that pointlessness is a joy in itself, experiencing something new and beyond your comfort zone is an exhilarating experience. Sure, some vacations will cost you an arm, a leg and a kidney but there are also those that will not cost you the world to see the world. Do your research before you go, there’s always a trip for every budget and tourist.

Delegate

You’re a force to reckon with within your office confines, rapidly delegating work to those you feel worthy of polishing your shoes. So why stop there? Apply the same entrepreneurial and management principles in your day to day lives as well. Get someone to do your work for you that is better than you and then leave things to him (or her) while getting on with your own life. The internet has made the connection with job seekers and those with needs complete, and you can find anyone to do almost anything for a reasonable fee. Do you need to do a bit of spring cleaning, or perhaps cook a great meal for you? What about that one task you hate doing, something as mundane as organizing your vast collection of DVD’s? You’ll be surprised how much a little money can go a long way towards smoothening out your life.

Get a wealth manager

Some question whether a wealth manager is an expense or an investment. We simply retort by saying that all investments are, by their very nature, an expense. But what makes an investment special is that it is an expense that returns to you manifold. All too often we worry about making money, money and more money and it’s a cycle that never ends. So why not stop worrying about your money and get someone on board to do exactly that? Sure, it sounds like frivolity, but if you can find someone trustworthy to manage your finances, do so. The best ones always pay off their fees several times over.

These are just some possible solutions, but we’re sure you can think of something more to suit your own needs. So look closely at your needs and weigh up decisions before you jump into them and if you can understand how best to channel your money, it’ll look after you just as much as you have been looking after it.

However, there are certain advantages of staying at home and taking care of your children. If you are planning to do so, but are worried about your financial loss, you need to consider the following points:

Save Money on Child Care

This is one of the biggest financial benefit you can have of staying at home and taking care of your children yourself. Instead of hiring someone, you can do things better, and save around $250 – $300 every week.

Save Money on Taxes

If one of you quits your job and has no income, you obviously don’t have to pay income tax. For instance, if you were making $30,000 each year, it puts you in 28% tax bracket with over $20,000. This means you will have to pay around $8,100 every year, which is around $156 each week.

Save Money on Food Expenses

When you are at work, you go out to eat with your co-workers more than often. Let’s say you eat out around two times a week, and have $10 pop each time. It will cost you around $20 each week, that is $80 – $100 ($100 if u eat something additional) every month.

Save Money on Automobile

If you commute by car every day to your workplace, you spend roughly one and half gallon each day, and you have to get oil changed every three months. Besides, you have to spend money on repairs and regular maintenance. These costs can sum up to around $5 every day, or $25 each week. By staying home and taking care of your children, you can save around $100 a month on automobile.

Save Money on Work Expense

There are several hidden expenses we incur while we are at work. I call them hidden because we don’t really consider them as expenses. It just happens. We sometimes pay for coffee fund. Sometimes, we are expected to contribute money for a gift purchase. Although this may vary from person to person, I can say the average expenses are $10 every week.

Save Money on Habits

A smoker usually smokes more when he is at work. Similarly, we drink more coffee each morning and evening at our workplace. Staying at home can save you around $25 each week.

Save Money By Adopting Frugality

If you are at home, you will discover many ways to save money. However, this cannot be done if you are at your workplace. Besides, you can teach your kids to be frugal as well. The services that you paid for earlier, can then be done by you at home.

So, it really isn’t a bad idea to quit your job and take care of your child at home. You save around $500 to $500 each week, which is around $24,000 each year. I guess the decision of staying home is a fair idea.

Reduce Packaged Items in Your Cart

Even if you want to buy packaged items, buy in bulk. Packaging on small items generally costs much more than packaging on big items.

Another way to reduce your cost is by shopping in stores that don’t focus much on packaged products. For instance, at many markets, you are asked to bring your own bag. There are any groceries stores as well that offers you this option. The only investment you need to put is reusable bags, and few containers at home.

Lastly, you can save money by buying ingredients, and cooking at home. Cooked food, or frozen food would always cost you more than loose ingredients.

One more thing I would like to add here, is being a conscious shopper. It’s very easy to ignore the price and buy packaged food, simply because you don’t want to take extra pains. Besides, you will have to pay attention on what could be costlier, check the prices of the counterparts.

A Bigger Impact

Apart from saving some money, you will also help in keeping the environment clean and healthy, by not buying packaged products. Do not purchase anything with package that can be bought without package as well. You will be surprised at the amount you would be able to save every month simply by doing this.

It may not always be possible for you to buy things without packaging, but at least making at effort could make a big difference.

It would have been a piece of cake if the question would have been ‘tell me about some money saving tips’ or ‘ways to save money each month’. But when she asked ‘single best advice’, I had to think for a while (and she also was bit surprised with it). However, not according to her expectations, I came up with a very simple, ordinary advice.

Although I knew that was a good one, it was certainly not the best one I could think of. So, for the next few hours I mulled over the same question, and I came up with two answers.

Earn More, Spend Less

This is certainly important, and you simply cannot save money breaching this rule. Before you create your monthly budget – if you do it at all – make sure you have this in mind. However, this is not something that you can use. An advice would be something that would show you how to spend less. So, I came up with another one.

Do Not Splurge Money to Impress Others

This is certainly an important advice. When you notice any consumer especially college students, most of the spending is done to please others. They buy new gadgets, new clothes, and new pair of shoes simply to impress their friends and neighbors. Once again, however, it was something that I cannot term as money saving ‘tip’. It was simply a state of mind, or a general consumer attitude, which one should avoid.

So what is it? What is the one thing (best thing) that can save you money. This morning, while reading a personal finance book, I realized, it’s books, at least for me. I spend around $90 each month on books, which is $1000 every year. I guess that’s a pretty decent amount. However, I cannot survive without books. Instead, I can opt to have membership at any of the local libraries.

So, yes, for me it’s cutting down on reading books. I would need some of your comments on this topic. “What’s the single best advice for readers to save money?”

• Apply formal money management techniques
  Don’t spend your money aimlessly. Plan your expenditure and also track how you are spending your money. List out your credit card dues and in how you many days you intend to pay it up. Form realistic goals for your bank balance and try to achieve it and stick to it sincerely.
• Hunt for Cheap Insurance
  Insurance premiums can be very high. You’ve got to hunt for cheaper insurance, i.e. those with lower premiums but good coverage. This is quite tough and time consuming, but it’s worth the effort for you.
• Get a lower interest payment from your financier
  If you have taken money from your financiers or mortgaged property to them, you can simply get your loan converted to a lower interest one by talking things out with your financiers. If you are not able to pay up a loan, they will be more than ready to slash the interest rates because that is a better option than missing out on payments.
• Review your expenditure on all household communication devices and modes
  If you are a busy professional you’ll hardly watch TV, so is it necessary for you to keep your subscriptions for the cable TV channels and pay up  for them unnecessarily? Also it’s not necessary for you to maintain both a landline and a cellphone connection for communication. Why do you need to waste money on a landline connection when most of the times you stay out of home with your cellphone around?
• Don’t overlook hidden money
  Always be conscious of gift cards, coupons and any discounts. If you are entitled for any unclaimed monetary gifts just check websites such as Missingmoney.com where you might find such property under your name.
• A junk sale is a super way to make extra money
  You can always sell up your old unused items, donate them or give them up for recycling. All the three ways are going to fetch you money. Some stores give you discounts when you give away things on charity or send them for recycling.
• Visit some good personal finance websites and blogs which can show you effective ways of investing money and making it grow. Other than saving in fixed deposits in banks there are many other investment options which make your money grow more than the traditional fixed deposits. There are some good retirement and insurance plans for doubling or trebling your money in a matter of a few years.

Money Saving Tips

A Wrong Credit Card Can Make You Spend More

Choose a credit card that is most appropriate for your expenditure and style of spending. The credit card that you choose should be perfectly made for you. Otherwise you might be spending money on extra features and services that you don’t actually use.

Track Your Expenditure

Many of us don’t closely follow how much we spend on what. Use personal financial planning software. Allot a certain amount of money for each of your expenditures and allow yourself to receive SMS alerts on stepping out of your limits.

Loyalty Club Memberships

Retailers offer attractive discounts to members of loyalty clubs. Loyalty club membership discounts can be used anywhere, from bookstores, cinema halls, restaurants and even for buying flu shots.

Find Coupon Codes

Coupon code discounts come in a big way to shoppers these days for both their online as well as in-store purchases. Hunting for discounts on coupon codes is so easy. Just run a Google search for the retailer outlet’s name and find if it’s offering any codes. After that find out the discounts that the codes carry and avail them.

Watch out for Grocery Sales

Grocery sales are offered once in two or three months, you can still save up on a lot of money by a clever usage of grocery sales, general rebates and coupons. With these you can always buy items in discount.

Pay In Cash Rather Than With Credit Cards

Paying with credit cards might look a very convenient option, but making cash payments can save you a lot of hassles. Firstly, you are saved unnecessary fees on credit card payments. Secondly, the transactions remain simple and straight. There’s no risk of your bank account being pilfered due to leakage of your credit card details. Thirdly many shops have attractive discounts on cash payments.

Reduce Your Expenditure on Pet Lifestyle Products

Pet lifestyle products cost a fortune! Pets are meant to lead a free lifestyle like their counterparts in the jungles, but we see them playing with pet toys, being taken to pet beauty parlors and made to use pet furniture. By letting a pet lead a simple life like an animal, which it correctly ought to, we not only give it the freedom that it craves for, but also save up on a huge amount of money. Spend on pet food, pet insurance and medical care instead.

Artful haggling while shopping (it’s not embarrassing anymore) and sealing up cracks in your house to prevent leakage of conditioned air during summers and winters are the last two ways in which you can save up on your expenditures.