How Much Life Insurance Do You Need?

This is different for every person, and is a highly personal decision. What do you want the life insurance policy to do for you? Once you answer that question, you will be in a better position to determine the amount you need. Perhaps you want it to provide for your family if you die. Perhaps you want it to pay for your funeral only. Perhaps you want it to protect your business partner. How much money will fulfill your goal, and how long will this need last?

The people with the greatest need for life insurance are the sole breadwinners of young families. Let’s say you are married and have two children and your spouse doesn’t work. What if you die? How much will be enough for your surviving family to live happily without your income? A general rule of thumb might be 10 times your annual salary. This big lump sum might be enough to provide food, clothing and shelter for your survivors and possibly more. Do you feel that this amount would provide for your family until the children are grown and your spouse could get a job?

Another person without children might only need to protect his or her spouse. The need is less, particularly if the spouse is working. How much is enough? That is a question to discuss with your spouse.

Perhaps you have a disabled child, and you need insurance to provide for this child for the rest of his life after you die. It might be a considerable sum.

Perhaps you just want an insurance policy to pay for your funeral so your family won’t have to think about that when you die. In that case, a $5,000 to $10,000 policy is probably enough.

Perhaps you have no family responsibilities and you never will. You probably don’t need life insurance, particularly if you are elderly.

For most people, a prudent plan would be to carry a large amount of life insurance (maybe 10 times your salary or more) during that period of you life when you have heavy responsibilities such as children and mortgage. Then reduce the amount of insurance when the children are grown. Finally, when you are elderly, life insurance is just too expensive and is dropped altogether. Of course, it is different for every person.

Save on Textbooks for College

With the spring semester starting for some and already started for most students, college textbooks are expensive and it’s tough to avoid paying for them. Your professor writes the book, forces you to buy it for $100, and then changes the edition every year so you can’t sell it back.

With that in mind, remember that the book itself is worthless. It only has value because they force you to use it. Once they make a newer edition, your copy will be worth $0. Here are some tips to limit the damage.

Buy Used. This is kind of a no-brainer. If you can’t find used books locally, try Amazon.com. Just make sure you get the correct edition.

E-Books. Most colleges and universities are switching to using e-books or electronic books. Most of them are a much lower cost than textbooks, and some schools may offer these books for free. Check with your school bookstore.

Use the Library. Don’t buy the book – just use the reserve copy at the school library. If you have to read a novel for an English class, check it out from the school or town library.

Always Sell Back. Once the class is over, most people never look at their textbook again. So sell it now while it still has value. If you change your mind, you’ll be able to buy it back later for cheap.

Returns. Understand the return policy for your books. Opening a DVD can make the item unreturnable. The worst thing is buying a textbook for a class you never take!

Borrow From a Friend. Find a friend who took the class last semester and foolishly decided to keep the book. Borrow it.

Winter Car Maintenance

Cars are expensive to buy and maintain. If you live in a cold weather climate, it’s even more important to keep your vehicle serviced regularly. Nothing’s worse than driving on a freshly salted highway, and finding out that you have no windshield washer fluid or that your windshield wipers are worn out and don’t work properly. These are simple things that anyone can do themselves, and will help to prevent accidents. Preventive maintenance is usually cheaper than having to make expensive repairs later. Here’s the most basic inspections you should do in preparation for winter driving.

1. Check your windshield wipers. Save money by changing the blades yourself if needed.
2. Check your windshield washer fluid regularly. You can keep a jug of this at home and refill as needed. Just be sure to store it in a safe place where young children and pets can’t get at it as it is poisonous.
3. Check the tread on your tires. At the same time, check the tire pressure.
4. Have your brakes inspected.
5. Check your battery.

Winter driving presents its own set of challenges. Taking the time to clear off the the windows and making sure they’re adequately defrosted keeps you and other drivers safe. Driving slower and watching out for the other guy will save you money and aggravation in the long run.

Tips on Saving Money on Groceries

In hard times, people tend to stay home more often and eat at home. However, the cost of groceries can be costly as well. Below are some easy ways that you can save money on groceries.

Clip Coupons. Did you know that most grocery stores post their weekly coupons online? PrintableGroceryCoupons.net will help you find the coupons for most national chains. Also, when checking out, ask the cashier if there are any coupons for the items you bought. Additionally, find more coupons at Coupons.com and SmartSource

Buy Generic. Many generic products are identical to the more expensive brand names – some are even made in the same factory and shipped from most of the same warehouses. Haven’t tried generic recently? Many store brands, such as Shop-Rite, Giant, Walmart and Target, can taste better than the brand names.

Buy in Bulk. When an item is on sale, buy it in bulk. This is especially true for things that don’t go bad, like toilet paper or laundry detergent. Also, shopping club outlet stores such as BJ's, Sam's Club and Costco can help you save when shopping in bulk.

Buy Whatever’s On Sale. Stock up on your favorite brands when they’re on sale. If all of your usual favorites are full-price, then buy whatever is on sale. It’s good to try new things.

Double-Check the Price. Watch the register as items are scanned. Make sure you are not over-charged.

These tips can save you lots of money on your weekly grocery bill. So during these cold months, stock up on your groceries and enjoy the savings. 

Food Assistance for the Needy

For those struggling with paying monthly bills, assistance with food purchases can be a great help. The Supplemental Nutrition Assistance Program or SNAP, which used to be called food stamps fills that need. Surprisingly, many of those who qualify for assistance either aren’t aware of it, or don’t apply for it.

Food stamps often had a stigma associated with them since everyone at the store knew that you were using them. In addition, they could be lost or stolen. The new program puts money directly into a person’s account every month, and then issues them a card which they use like a credit or debit card at the store.

A new addition to the program is the participation of many farmer’s markets. This allows recipients to get fresh produce at a reasonable price. It is also a benefit to the farmers in that more people have the money to purchase their products.

To find out more information about SNAP and eligibility requirements, you can visit their website at:http://www.fns.usda.gov/snap/Default.htm.

To apply for benefits, you need to contact your local or state office. The phone numbers and locations can be found at the aforementioned website, or you can look in your phone book under local and state government. A few states allow you to apply online.

Tips on What to Do With Your Tax Refund

Income tax time is upon us, and some of us are going to get a nice refund. What a lot of us do is get our taxes done, get our refunds and will end up spending it within a few weeks. And that’s a problem with some of us as a people. We take our tax refund and try to keep up with the Joneses. In recent years, you can take your W-2’s to a car dealership and get your taxes done. They prepare your taxes in exchange for a car. The sad part is that the dealerships that are in the urban neighborhoods are focusing on this because they assume that we only buy cars around income tax time. And most check cashing locations in our neighborhoods do the same thing as well. What we have to do is control our own income tax refunds. Here are a few suggestions on what we can do with our upcoming income tax refunds for this year and maybe we can follow these going forward every year:

Pay Off Debt

If you have a credit card with a double-digit interest rate, the best thing you can do with your money is to pay down this debt. If you're like many Americans, you may not be paying much more than the minimum payment each month. When you pay only the minimum payment, most of it goes towards interest instead of reducing the amount you borrowed (the principal), which is why it takes so long to pay off the original debt (often 20 to 30 years).

Start A Retirement Fund

Did you know that if you put away $1,000 a year for 25 years at a 12% interest rate, you can accumulate $1,000,000 by the time you retire? That way, if or when they decide to eliminate Social Security altogether (which I think will eventually happen), you’ll still be able to retire and live comfortably with no worries.

Make an IRA Contribution Now

If you're eligible to make an IRA contribution, you can come out ahead by making it now instead of waiting until you file your taxes in April. Why wait until April to start earning money on your contribution?

Pay Down Your Mortgage

Making a lump sum payment to be applied to the principal on your mortgage can save you the most money in the long-term because mortgages are usually our largest and longest-term debt. A $1,000 pre-payment on a $100,000 mortgage at 7% would save you over $4,000 over the life of the loan.

Pay Off Your 401(k) Loan

If you've borrowed from your 401(k) account and are thinking you're coming out ahead because you're paying yourself back by making the loan repayments, think again. You'd be better off to pay off the balance and use the money you would have applied to loan payments to make additional tax-deferred contributions to your account instead. Remember, the money you borrowed is not in your account and therefore is not earning interest or appreciating in value.

Beef Up Your Emergency Fund

The job market is unpredictable, and your job might be one of the next to be cut. Don't be caught unprepared if you're one of the hundreds of thousands of people who are laid off or fired. You should have an emergency fund that would cover three to six months worth of your basic living expenses. If you don't, adding your tax rebate or refund to your emergency fund may be a smart thing to do.

What's best for you always depend on your personal situation, but for most people, one of the options discussed here will benefit you most in the long run.

All in all people, we have to become debt free and financially independent for 2008 and beyond. A lot of us claimed in resolutions that we want to get out of debt and save some money. What better way to start your plan to get out of debt than with your income tax refund? That way you can still live off your regular income and still be able to save. You can do these steps once a year for the rest of your life and still keep your standard of living the way that it is now. The best and most important part in all of this is that you’ll be in control of what you do with your money. 

If you need any further assistance, please contact Provident Business Services at 484-857-7012 or mwaring@provbiz.net.

Gym Memberships - Are They Worth It?

OK, the holidays are over. We ate more than we normally will eat in a few short weeks and now the holiday pounds are on. Now it's January and a lot of us want to get our bodies ready for the summer. Meanwhile, gym memberships and personal trainers can become really costly. So here are a few short ti[ps on how to get in shape & save money at the same time.

Work Out at Home. Try working out at home for free. It’s amazing what some people can accomplish with only body-weight exercises and light weights.

Negotiate. The rates at most gyms are negotiable. Don’t pay the asking price.

Don’t Commit! Don’t pay for a whole year until you’ve proven that you’ll use it. And like the prices, initiation fees are negotiable. Ask for a month-to-month membership with no initiation fee.

YMCA. The YMCA will often give discounts or free services to people who cannot afford it. The YMCA is especially useful for people with children.

Insurance Rebate. Some insurance companies give rebates on gym memberships. Worth asking about.

The European Way. Americans spend more time in gyms than almost any other country. Unfortunately, we are also one of the fattest
countries. So what gives? Outside of the US, more people stay healthy by walking instead of driving and eating moderate portions of healthy food. If you have a healthy lifestyle, you won’t need a gym.

So let's all get fit this year and save some $ at the same time.....

For more information on how to maximize the money that you're already spending, please contact:

Provident Business Services - http://www.provbiz.net - 484-857-7012

Saving Money on Heating Costs

With winter now here in full swing, it’s a good time to think about ways to lower your heating bills. Although some things cost quite a bit of money, others require very little outlay of cash.

1. If you don’t have very good windows, and can’t afford to replace them, seal them on the inside or outside with plastic and tape.
2. If you have a window air conditioning unit, either remove it for the winter, or seal it with plastic and tape. Covers can also be purchased for them, but they don’t always stay on in a strong wind.
3. Check for any gaps around windows or along the foundation of your house, and seal with caulk.
4. Use weatherstripping to fill the areas around doors and windows where cold air is entering.
5. Limit use of your fireplace, and when not in use, close the damper. Wood fireplaces are cozy, but not very efficient.
6. Close the doors to rooms that you don’t use, and close the vents on the registers.
7. Move furniture away from registers so the air will circulate better.
8. Lower the thermostat when you’re going to be gone for several hours.
9. As noted in an earlier post, use a space heater to warm up the living room in the evening.
10. Wear more clothes and wrap up in blankets at night.
11. My feet always get cold, so I bought slippers with removable microwave packs to keep them warm.

These are some of the less expensive ways to save money on heating costs. When you have a little extra money, you might want to consider other measures such as:

1. Buy a programmable thermostat so you don’t have to remember to turn the heat down at night or when you’re gone.
2. Increase the amount of insulation in your house.
3. Replace your old furnace with a more efficient one. Income tax credits are available if they are purchased by 12/.31/11. Check here for information: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index
4. Replace old windows and doors.  The above credit applies to these too.

These are just a few tips that can help you save money on your energy expenses in those winter months.

Going Out for Food and Drinks

Going out in this say and time can become really costly and expensive. However, it's in our nature to be social and we as a people like to spend time with our friends and loved ones out of the house. Here are a few tips on what you can do to save money when going out for fun evening activities.

Don’t Order Unpriced Drinks. Ever go to a restaurant and the drinks don’t have prices? Ask the price. It could cost as much as your meal!

Check Your Bill. If you didn’t get all your food, make sure it doesn’t show up on the tab.

The “Special.” If the server doesn’t give you a price for the daily special, make sure to ask. It will usually be expensive.

Pre-Drink. Instead of two drinks at the bar, have one drink at your friend’s house before heading out.

Don’t Overeat. Skip on the appetizers and desserts. Better yet, split an appetizer, entree, and dessert between two people. Except if you can win a pizza contest 

The Best Way to Save. The easiest way to save is obvious. Socialize more at home with your friends, using food and drinks from the grocery store.