Posts Tagged ‘saving money’
How do I calculate how much money?
Most people have multiple debts and payments. We all know that we have a mortgage, car loan, card. But what almost nobody knows is how much money you actually how much time is left to pay and at what cost (interest rate) is paying those debts.
It is very appropriate that we keep a tight check on these data, to know at any time if our situation allows us to meet these debts.
Reports and to request a payment plan
The first thing we do is a list of all loans that we have, other periodic debts and insurance payments will be addressed (taxes, incidentals, etc..) Some of these debts relate to loans for which we paid interest and others do not.
Debt interest
For example, among the debts with interest are: mortgage, car loan, personal loan (for any expenses) and credit card.
Interest-free debts
Debts without interest but we have to pay monthly or other intervals, but we can plan because we know that exist, include: tax income, vehicle tax, tax on the rateable value, shares of the residents, vehicle insurance, home insurance and personal, car reviews (ITV, maintenance …) and so on.
The boxes have to spend at least 50% of its profits to reserves, to ensure their present and future solvency.
The rest of the benefits you have to spend compulsorily Social Work in fields as diverse as culture, sports, health, heritage conservation, etc.. Normally, the boxes allocated between 30 and 40% to Social Work, which means they spend between 70 and 60% to reserves.
Another difference resulting from the previous one is that banks are run and managed by a board elected by the Board of Shareholders, and the boxes are subject to review of the Autonomous Community where its registered office setting, and management bodies are elected and agreed by political representatives.
It is also true that small banks tend to be less present national banks, which can be a problem in finding offices when we travel. But large and medium boxes are already in almost all sites, after years of expansion policies of its offices.
So what is best for us, a bank or a savings bank?
Regarding this question, we can say that today we will not get more benefits or better condition in general for being a customer of a bank or savings bank.
* Banks and savings banks are differentiated by their legislative character. The banks are joint stock companies, while savings banks are limited liability companies.
* You can say that currently, banks and savings banks offer the same services, it is more, the two entities competing on price, efficiency and attention.
* The best way to know which is opt to study in detail all the factors that most interest us: commissions, interest, remuneration or proximity.
Savings Banks or what kind of entity suits me as a customer?
In our daily life, relations with financial institutions are indispensable. On many occasions we have to deal with banks or savings banks, from wages to collect our personal and mortgage borrowing.
It can be said that banks in general is an economic sector clients we have to be almost mandatory. But from the standpoint of our interests as customers, what kind of entity is best for me, a bank or a box?
Fundamental differences between Banks and Savings
We will try to briefly explain the fundamental differences between the two types of financial institutions.
The main distinguishing feature is that the savings banks are in essence non-profit entities. They were born as entities dedicated to carrying out in support of the lower classes, and currently are required by law to contribute part of their profits to social work. Therefore, the boxes do not have owners, but managers and unlisted, so it can not be acquired by private equity.
By contrast, banks are profit-making entities, and can use their profits to satisfy their shareholders and what they see fit.
In the article What first payment of my debts? payment preferences saw that we follow when we have debts and we can not pay them all. Now let’s consider a different case.
We assume that we have some extra money and want to dedicate it to recoup some of our debts. Normally, we have mortgages, credit cards and one or more personal loans (automobile, a purchase, etc.)..
Which of them spend the extra money to optimize my financial situation? ”
What seems clear is that it should first pay off the credit card. It is a liability that requires us to pay a high interest (between 15 and 25% APR, but is always expressed in monthly interest).
The savings that I will repay the debts of the card will be higher in all cases to repay any loan. It is also a short-term debt reduction or elimination which will increase our level of solvency and improve our economic situation in the near horizon.
Suppose we have amortize all debt from credit card, and we still had some spare money.
What then amortized loan, the mortgage or staff?
Amortize the mortgage
Here and there to make a series of calculations, since there are circumstances that can do better either repay the loan.