March 2017

Top 7 Car Insurance Myths You Need to Know

There are a lot of car insurance myths that continue to be spread around by consumers. One of the biggest reasons for car insurance myths is that you do not exactly know how your car insurance is calculated by your insurance company. These calculations are a closely guarded secret by most car insurance companies, but there are a few clues as to what makes our car insurance rates rise. It is important when you compare car insurance rates to understand as much as you can about how your car insurance rates are calculated and to debunk the popular car insurance myths in order to ensure that you are saving money on car insurance as much as possible. Top 7 Car … Read more

The Opportunity Cost of Debt You Are Holding Onto in Life

by Guest Contributor

Opportunity Cost - How Debt Is Ruining Your Life

The following is a guest post from the crew over at Kasasa, a financial technology and marketing services company for the banking industry. Kasasa provides local banks and credit unions with marketing, resources, and innovative products including free checking. If you haven’t checked out their services, I highly recommend you do so and find an institution near you that offers Kasasa’s free checking.

It’s hard to avoid debt.

Without it, the idea of buying a home or going to college would be unattainable for many. Even the people who we see as successful or enviable most likely have debts in some form.

So how can you utilize debt to grow your worth without digging a hole you can’t get out of? Simple: minimize the opportunity costs of the debts you hold.

What is opportunity cost?

In laymen’s terms: opportunity cost comes down to weighing your options and calculating the most efficient path to achieve your desired outcome.

It’s represented by this equation:

Opportunity Cost = Return of Most Lucrative Option – Return of Chosen Option

Why is opportunity cost important?

Since debt has become such a norm for many Americans, we’ve lost the urgency to get out of debt. The mindset can easily become: “Well, these minimum payments are so small, they don’t really impact my lifestyle. Why should I rush? Being in debt isn’t so bad, right?”

Wrong.

This mentality will cost you in the long run. Let’s look at a practical example that will reveal just how much you ultimately pay for your debt. And how much you could be saving if you calculated the opportunity costs of your debt now.

Example:

Let’s say you have $30,000 in student loans you need to pay off over the course of 40 years at a 5% interest rate. That’s a pretty long time to pay off your loans, and if you have a good job, the estimated $144.66 you need to pay each month might not hurt your lifestyle so much.

However, by the time you pay off that loan, you will have paid a total of $69,436. That’s almost $40,000 in interest over the life of the loan.

We don’t need to tell you what you could have done with that money.

Now, taking into account the opportunity cost, what if you paid $50 extra on the principal each month?

Top 5 Rules for Picking a Business Name

by Guest Contributor

Every business needs a name. But, what you may not realize is that choosing the name of your new company could be the most important decision you’ll make in the beginning.

When customers hear your business name, it can either have a powerful impact on the way they view the company or it could have a negative impact if you choose the wrong name.

Today, we’d like to help you make the best decision possible when picking your name.

So if you take the time to learn and use these five rules, you’ll have no problem picking a name that inspires confidence in your abilities to help customers far and wide.

1. Pick a Name that’s Easy to Remember and Pronounce

Some companies like to use made up names when creating the name of their company. Other companies like to choose nonsensical phrases.

Guess what?

This isn’t always the best idea. But, that’s not to say that it’s a completely terrible idea since companies like Google, Yahoo, and the like have had some success with this type of name.

In truth, these names really don’t mean anything to people. So they are easily forgettable and they really don’t tell people the identity of your brand.

Instead, you should choose a name that is simple to pronounce, straightforward to remember, and one that helps promote your brand.

2. Simplicity Is the Key to Choosing a Great Business Name

It’s a good idea to choose a shorter, simpler name when naming your business.

3 Crucial Money Moves to Make Right After Graduating College

by Hank Coleman

If you’re a recent college graduate or about to graduate this year, there are several financial considerations to make that you didn’t have to think about while you were still in college. You should think about making money moves right now before you graduate from college. Now is the time to start thinking about your financial future. Money Moves to Make Right After Graduating College Although planning out your short and long-term financial situations may seem like a chore when you’re in the midst of writing essays and studying for tests, here are three extremely important things to consider for soon-to-be graduates. Figure Out Student Loan Repayments If you’re drowning in student loan debt after graduation, then your first priority … Read more

How to Lower Your Taxes Through Diversification with Your Investments

by Hank Coleman

The following is a guest post by Rick Rodgers, CFP®, the author of Don’t Retire Broke: An Indispensable Guide to Tax-Efficient Retirement Planning and Financial Freedom. If you’d like to provide a guest post to Money Q&A, check out our guest posting guidelines. Most investment experts will tell you that diversification is one of the most important techniques to utilize in an investment strategy. The process of allocating your funds among different types of investments does not guarantee against loss. However, it can minimize losses by holding investments that may react differently to an event. This advice has been around as long as the Bible. “But divide your investments among many places, for you do not know what risks might … Read more

Why a Financial Blueprint Can Give You Financial Freedom

by Guest Contributor

Can You Afford The Cost Of Starting a Family?

The following is a guest post by Greg Powell, author of Better, Richer, Fuller: How Building Your Financial House Can Help Protect Your Loved Ones, Grow Your Assets, and Free You to Live the American Dream. If you’d like to submit a guest post, check out Money Q&A’s guest posting guidelines for more information.

Everyone needs a financial blueprint. Why use the term blueprint? Because people understand the value of a blueprint.

If you are building your dream house you wouldn’t give your money to an architect or builder who after an hour says to you, “I’ve gotten enough ideas, I’ll start on your house tomorrow.” No, you would review with an architect the vision you have of your home, how many rooms, bathrooms, fireplaces, and etcetera. Then the architect would develop a set of blueprints from which the builder and construction team would work.

Too often in the financial services industry, the “I’ve gotten enough ideas” approach is used by advisors when someone meets them for the first time and begins to share their vision for their life.

Financial planning doesn’t have to be complex or intimidating. However, it does need to be in depth and take into account the dreams and goals of your life and your family. There are questions in the financial blueprint process that everyone needs to ask or have discussions about.