The question of how much you should have saved before you jump into investing is a personal one. Everyone has different needs and different goals, thus for everyone, the question is a personal one. However, there are some general rules of thumb which can help you to make the decisions more clearly. Here’s what you need to know:
You Need an Emergency Fund
First and foremost, if you don’t have one (most Americans don’t), you need an emergency fund. This should be at the minimum between $500-$1,000 in easily liquid funds (i.e. a savings account) which you can draw on in case of an emergency. Most emergencies tend to be in that price range (the need for a last minute ticket, the need to send a few hundred dollars to your child who is stranded, the need to get a roof repair done, etc.). Thus,
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More middle-income consumers are seeking help through formal debt-reduction plans, according to an Atlanta-based credit counseling outfit.
In 2007, the average income for clients entering debt-management plans through the nonprofit Credability was $43,000, and their average credit-card debt was roughly $22,000, said Mark Cole, executive vice president of the agency.
Last year, though, their average income was $54,000, and their average credit card debt was $24,000, he said. (The median income in the United States is about $50,000, he noted).
Mr. Cole said the housing debacle and continued high unemployment rates were probably behind the trend.
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If you receive benefits you could soon find that how you qualify and the amount of money you receive changes significantly.
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Car insurance premiums could be radically reduced if the government took action to reduce spurious whiplash claims and personal injury referral fees, according to an influential panel of MPs.
The Transport Select Committee said insurers should be forced to demand more proof that claimants has suffered a whiplash injury in a car accident and not be allowed to sell on customer details to solicitors and claims management firms.
Whiplash claims currently cost the insurance industry some £2 billion a year, according to the Association of British Insurers (ABI). This equates to an extra £90 being added to every driver’s annual insurance premium. The
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When looking at your investment returns, its important to calculate your return after the impact of taxes and expenses (management fees, commissions, bid/ask spreads). That number is what you really end up with, but its never shown on any year-end statements. ETF provider iShares put out a that shows the average annualized tax cost for actively-managed mutual funds over the last 10 years. Via and .
Many actively managed mutual fund managers have had difficulty delivering benchmark-beating, after-tax returns. Figure 1 shows the 10-year average tax cost for active funds and top quartile active funds. What’s striking is that in every case except for mid cap blend and small cap value, top quartile funds’ tax costs (as indicated with a white dot) were equal to or greater than those of the category average (black dot). Eve
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Christmas is the time of year to have fun while enjoying the holiday with family and friends. However, the magic can also be extinguished by the mad rush of stressful shopping, vacation planning, and other logistics. It’s no wonder that the holiday season is actually one of the most stressful times, especially from a financial perspective. The commercial aspect of the holiday encourages spending. Smart spending and creating a Christmas budget, can reduce the financial burden and alleviate some of that unwanted stress. Here are some money-saving strategies and tips to weather the financial blizzard.
Define Your Budget
In your Christmas planning, you need to set boundaries. Remember, you can’t buy everything for everyone. Yes
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