AIA Chiangmai

Two incomes aren’t always the obvious choice. Most households today consist of two incomes. Stay at home parents are less and less common. Part of this is due to the increase in housing costs in many areas. Houses are larger, fancier and more expensive than ever.

But have you thought of the costs associated with two incomes? When both parents work, there are more auto costs — double the auto insurance, gas and maintenance. There is also day care, an increased level of taxes, more for clothing and even lunch.

You have to spend money to make money, after all.

Two income homes are often more risky than one income homes. When there are two incomes, a level of spending is reached that is comparable with the two incomes. If one wage earner is laid off or can no longer work, the family may find it is in financial trouble.

In a one-income family, if the wage earner is no longer working, the partner can go to work and provide approximately the same level of living for the family. Yes, there may be a gap in the incomes, but it usually isn’t as severe as when a two-income family loses one income.

It’s not that two income families aren’t great. They are just as wonderful as one-income families. But you should consider all of the costs when looking at the extra income. It is often more sensible and increasingly frugal to consider becoming a one income family.

Even if you are a two-income family, you can reduce your risk by simply working your budget so that you are living off of only one income, not both. That way, you are able to cushion yourself against any unforeseen occurences. The income from the second income should go directly into savings each month. You will be amazed how quickly your savings will grow by doing this.

It can be difficult to go from two to one, but if you adjust yourself gradually, you should really notice the difference. The changes can start as simply as no longer eating out for lunch. For two people, that can save around $100 a week. That’s $400 a month!

Then, consider carpooling. Lots of families arrange it so that one person goes on and off work fifteen minutes before and after the other person. That way, they can ride together. This can save a lot given today’s rising gas expenses.

Find ways to cut your monthly expenses. Start paying off all of your credit card debt. If you have no credit card debt, start paying off your other debts. You should make sure that you have emergency savings that will cover up to three months of expenses. This will cushion your budget from unexpected emergencies.

Look to ways to cut your utilities, grocery spending and entertainment costs. You will be surprised what you will cut and never really miss.

One or two incomes, it is up to you. But make sure you base the decision partly on the math involved, not just what others are doing.

Martin Lukac (http://www.MartinLukac.com), represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

Tags: budgeting, Finance, household income, personal finance, second incomebudgeting, Finance, household income, personal finance, second income

Share This

Filed under: aiachiangmai03 | No Comments »

RV Warranties - Extended Service Contracts

Many consumers are uncertain when it comes to the question of Extended Service Contracts, or RV Warranties, as they are more commonly called. They’re not sure if they need the additional protection and coverage that an extended RV warranty can offer.

Many people have been lead to believe that extended RV warranties are simply a profit center for the RV dealer. This is true to some extent. Many RV dealers mark up the warranty prices from 100% to 300%, however Internet based companies can be much more competitive when it comes to RV warranty prices.

You shouldn’t allow yourself to be pressured by the dealer to add the coverage when you are signing the purchase papers on your new RV. You may decide to add it at that time, but you should shop around and compare coverages and costs, just as you did when you purchased your RV.

Most RV manufacturers warranty their new units from 1 to 2 years. If the RV is motorized, the chassis manufacturer may warranty the engine and drive line for a longer period.

If you have purchased a used RV from a dealer, there is generally a very limited warranty, if any normally lasting approximately 30 days. If you have purchased a used unit from an individual, there is generally no warranty whatsoever.

In most cases, you must initiate your warranty coverage before your manufacturers warranty runs out. Many companies however, will allow you to warranty a vehicle which you have purchased used, or after the manufacturer’s coverage has expired.

An extended RV warranty is an excellent way to protect your investment. Many RVs cost nearly as much as a new home, and in some cases, even more. Why not spend a little extra for a LOT of additional peace of mind while you travel?

Internet Based RV Warranty Companies

Just as the RV dealer has a very high overhead, commissions and other costs to consider when pricing the coverages he offers; Internet based companies usually have much lower operating costs. Don’t assume that the Internet based RV Warranty coverages are less comprehensive than what the dealer has offered.

Internet companies can normally provide many of the same warranty programs available from RV dealers. The are not only able to provide the same, or very similar warranty program the dealer offers, but at a much lower cost.

Consumers should always investigate the company that administers the warranty and claims, as well as the company that re-insures the policy. In other words, if the primary company went out of business, you are insured that the “re-insuring” company would step in and continue to honor and administer claims on existing policies.

Points to Consider

Claims Payments

You need to be aware of how the claims are paid. The preferred method of claims payment is through the Warranty Company’s corporate credit card. This allows payment to be made directly to the repair facility. Some companies require you to pay for the repairs first - and then submit the claim. It can take weeks or even months to recover your out of pocket expenses in this case.

Deductibles

You will have a choice of deductible amounts, normally ranging from ZERO to $200, or more. There is normally very little cost difference between the lower and higher deductible amounts. It is usually advantageous to choose a lower deductible amount since the deductible will apply to each and every repair done to the RV.

Termination and Transferability

Your warranty coverage should be transferable if you sell your RV. It should have a prorated refund policy if you decide to terminate the coverage at any time during the warranty period.

Repair Facilities and Coverage Areas

You should also be sure that you could have any covered repair done at any authorized RV repair facility. The coverage should be good anywhere in the United States or Canada. Rarely, if ever will a warranty cover you in Mexico, so keep that in mind if you decide to take a vacation south of the border.

Additional Benefits

Many RV warranties have additional benefits such as towing reimbursement, rental car allowances, towing and road service, and lost key and lockout service. Some plans will even pay for your meals and lodging while your RV is being repaired.

Optional Coverages

Most policies also offer optional benefits at an additional cost. These options can cover items such as: Seals and gaskets, audio and video components, additional towing benefits, commercial use and even normal wear and tear.

You should also be aware that California is now a “dealer obligor” state. The dealer is responsible for the performance of the service contract, and not the administrator, nor the insurance company. Online and telephone solicitor warranty companies are prohibited to sell directly to California Residents and that means any online or warranty company.

Summary

Most experienced RV’ers will tell you that a good warranty is like a gun… It is better to have it and not need it, than to need it and not have it. The key is to find the best coverage possible for the best price.

You depend on your RV when you’re on the road for lodging and transportation and you want it to work properly, especially when you’re hundreds or even thousands of miles from home.

Extended RV warranties can provide peace of mind and are usually well worth the money spent. It’s up to you to research the various companies and programs offered to obtain the best coverage for the money. Thanks to the Internet, it is much easier to compare pricing and plans and chooses the coverage that’s just right for you and your RV.

Barry Wilder
President - Best Rate, Inc.

Barry Wilder has been associated with his family RV business for over 25 years. He is currently the owner of Best Rate Financial Services, providing loans and refinancing for RVs, boats and aircraft. They also provide RV and Boat Warranties.

Best Rate Financial Services RV Warranties - http://www.bestrate-loans.com

Tags: motor home, rv warranties, service contract, warrantymotor home, rv warranties, service contract, warranty

Share This

Filed under: aiachiangmai03 | No Comments »

A medical savings account is designed particularly to provide retirement benefits by maintaining an account that is used to pay for day-to-day minor medical bills. The plan makes available tax incentives to facilitate purchase of high deductible health insurance and simultaneously sustain an account to pay for regular medical costs. This permits taking out money for trivial medical expenses, which include dental fees, eyeglass repairs, hearing aid accessories and also parking at hospitals or physician’s offices.

The policy is designed to cater to workers. However, not everyone qualifies and regulations are different for employees and the self-employed. Contributions to a medical savings account are always deductible. In case of an individual, they are deductible in tune with gross income, whereas if a company contributes, then it is non-taxable to employees. These are advantageous for self-employed people and small companies.

Leaving aside the amount used by account holders to pay for small medical bills, the rest of the money can be set aside for future retirement use. Characteristically, medical savings accounts work well for people in good health, who are not burdened with never-ending medical bills.

Small business concerns operating on inadequate funds use these policies to provide employees a minimum amount of health benefits. Similar to individual retirement accounts, account holders do not require approval from the Internal Revenue Service to start an account. It is, however, obligatory for a competent guardian such as an insurance company, bank or a financial institution, to open the account.

At times it may not be easy to come across an organization that works with these accounts. A majority of banks and brokerage businesses do not cater to these needs. However, most health insurance companies do offer these accounts. This should not discourage prospective account seekers from searching for a financial guardian, since a medical savings account goes a long way in securing some peace of mind for retirement.

Savings Accounts provides detailed information on Savings Account, Savings Account Online, Health Savings Account, Medical Savings Account and more. Savings Accounts is affiliated with US Savings Bond.

Tag: Medical Savings AccountMedical Savings Account

Share This

Filed under: aiachiangmai03 | No Comments »