There are several different types of financial advisers in the UK and, if you are currently looking for financial advice, it is important to you that you understand the main differences between them. Just as not all medical professionals are the same - there are paramedics, auxiliary nurses, nurses, GPs, registrars and consultants, for example - neither are all financial advisers the same! Types of Financial Advisers There are three main categories: Tied advisers, who usually work for a bank or an insurance company. They are only authorised to advise you on their own company's products; Multi-tied advisers, who are able to offer advice from a limited set panel of companies;
RRSP stands for Registered Retirement Savings Plan in Canada. It is equivalent to 401k in U.S. I often heard people saying "I bought RRSP this year", or "I have RRSP", and when I ask what you did with the money, they can't answer. Some even told me that RRSP is a scam. Leave aside all the confusion out there, RRSP is actually very simple. It is not a type of bank account, as most people might think. It has nothing to do with investment, despite from what your financial institution might want you to believe. It only deals with TAX. Quite simple, you save money, and you get income tax refund based on your current tax bracket. When you retire, you withdraw money and the interests or returns, and you pay tax based on your tax bracket after retirement.
Anyone who has accumulated wealth over time, has made saving a habit. Like any new habit, starting good financial habits will take a lot of work at first. However, after an adjustment period of a few days or weeks, you'll be well on your way to financial success for the rest of your life. Successful Financial Habits - Having Goals No financial plan is complete without setting first achievable goals. Make your goals unique. If you want to buy a million dollar house, that's great. However, make sure that is a big enough "why" to keep you motivated through the ups and downs. Decide what you really want, and then go after it. Successful Financial Habits - Budgeting Learning how to create a budget isn't as difficult as it sounds.
Are you moving toward financial security or are you depressed about your current financial situation? Suze Orman has a television show that offers you personal finance advice. People are invited to call in and ask her the proverbial question, "Can I afford to buy this item?" Some things that people want to buy seem to make perfect sense. Some requests are just outrageous to Suze. She's definitely on the conservative side of spending. You need to have a gazillion dollars saved to be able to afford to purchase an item under ten thousand dollars. Powerful, forceful, decisive and intimidating, Suze will tell you the good or bad news about whether you should make a purchase or not.
I always talk and write about the benefits of prepaid debit cards because I'm convinced they're the "real deal" when it comes to money management tools. My friends have heard me extol the virtues of these reloadable cards for a long time now. They've also heard me say that, inevitably, these little plastic wonders will someday replace cash. Well, that day's come just a little bit closer. You see, I just read where the Royal Bank of Canada (RBC) is going to issue prepaid Visa cards to athletes at the Winter Olympic Games in Vancouver. These are going to be very special prepaid cards, in that they will be "contactless" cards. That means they don't have to be swiped across a card device to be read.
Overdraft charges are a relatively modern phenomenon. Rewind to about a decade ago before the advent of overdraft protection programs. At that time, banks did not charge overdraft fees. Instead, if you wrote a check that was too big, it would just bounce. Sure, you would be charged a bounced check fee (which admittedly could be quite high) but you didn't have the frequency of overdraft fees that so many people see today showing up on their checking account statements. Notably, it is not just the overdraft protection programs themselves that cause the problems we have with overdraft fees today: it is the combination of debit cards and overdraft protection programs that is the culprit in our collective overdraft problems.
These days, it is very important to save money because all the prices of commodities are going up but companies do not increase their workers' salaries. Some companies even decrease their workers' salaries or bonuses while others reduce the numbers of their workers to save on company expenses. That is why you have to be always prepared because anything could happen. And one way to prepare is to know how to save money. Saving money has probably been in your New Year's resolution every year, but you still have not gotten around to doing it. Doing this is easier said than done. Sometimes, you cannot help but spend money if there is an emergency like an unexpected car problem or a big inventory sale which you just cannot miss.
If the principle behind getting rich slowly could be summarized in two words, they would be these: save money. And what better way is there to save money than to put it in a bank account? When used wisely, bank accounts can help your money grow. When used foolishly, they can drain your finances. Here are some tips for putting your money to work by putting it in the bank. Banking Tip #1: Choose a Good Savings Account Gone are the days when grandpas used to bury mason jars full of pennies all across their back yards. Now, we can use banks to keep our money safe and secure. And unlike Grandpa's stagnant coins, the money you put into a savings account will earn interest.
While some people may suspect that it's more common to overspend when one is happy and in a celebratory mood, studies show that the exact opposite is the case. When people are depressed and unhappy they are actually far more likely to spend more money. The Financial Highway website reports that sad people are big spenders. Particularly self-focused individuals are likely to spend as much as 300% more on the same type of commodity as their more satisfied contemporaries. People may feel that more expensive merchandise may enhance feelings of self worth. New purchases are often likely to provide a distraction from anxiety and sad moods as well, temporarily drawing focus onto the purchase itself.
The so-called Great Recession is hitting everyone hard. More and more people who were financially comfortable as little as two or three years ago have seen their financial picture take a rapid turn for the ugly and their credit scores deteriorate. Those financial difficulties may have resulted in having checks bounced for non-sufficient funds, and subsequently a Chexsystems record, adding insult to injury. If you are in either of these situations, opening a standard checking account can prove to be a very difficult task. Having bad credit and/or a negative Chexsystems listing is going to follow you for 5 years, and during that period most banks in the United States will turn you down if you try opening an account with them.