5 Tweaks To Spend Less And Save More

Each one of us wishes to save more and spend less. With this in mind, we make investments or save in a bank. However, the benefits of doing so are recognised in the long term. Do you know we can save even more by putting a watch on your daily traits? Let’s find out!

Unhealthy, Costly Routines

Such routines encompass anything that makes you spend more but ends up giving no beneficial value in terms of physical as well as psychological health. They are unhealthy habits that indicate an unhealthy lifestyle. However, people still stick to such traits to waste both money and strength.

Some of these most common routines are drinking, smoking, playing games for hours, watching movies until late at night or for long hours during the day and binge or junk eating. Such daily routines make you spend lavishly only to fade your psychological abilities and disturb the internal physical systems.

In short, you are spending money to destroy yourself! Well, this is sheer absurdity without the intention of offence. You can make a list of how much you spend on these behaviors and you will see how much sizeable you can save. Just calculate and just abstain from them!

Keep Savings Account as the Last Resort

It is okay to have a salary account and keep withdrawing from it for fulfilling your different monthly needs. However, it is not wise to start withdrawing from the savings account every time the salary account’s balance comes down to the minimum account balance or becomes zero.

Remember, the savings account has your saved money that you have gathered with many compromises. Thus, you should not be using this money for daily needs. This money is used only during a crisis that does not come every other day.

So, stop relying on the savings account for daily needs and you will then start spending prudently to ensure a good savings balance. 

Loan Balance Transfers

This is the tweak to try if you have obtained a loan from a bank and are repaying assiduously. If you have never deviated from consistent repayments, you can reduce your financial burden by requesting a balance transfer to some other bank. Doing so will give you a lower rate of interest, which means you will end up saving more although you are repaying the loan amount.

Cook Your Meals

It is tough to resist the temptation of ordering online food and enjoying the delicious flavors. Most of us do so almost daily or every other day, because it helps in saving cooking time but end up paying significantly. Just make a list of payments you make monthly for ordering restaurant food.

This will stun you! You will realise how much enormously you spend to save marginal cooking effort. So, if you wish to save, consider cooking for yourself by learning new nutritious and quick recipes. Restaurant food is simply not going to keep you healthy and wealthy if you order it quite frequently.

Use Travel Cards

This tweak is for those who travel at least twice a month. Air travel can be quite costly, especially if you have no advance plan of booking and book at the last moment. If this is the case, consider saving more and spending less by using a travel card to book air tickets.

There are dedicated travel cards to provide flying points or miles for every travel. Some cards give you significant miles for using the card for the first time. You can use these miles for cash on your next booking. With one such card, you also enjoy other perks such as premium lounge access or a free restaurant meal.

Conclusion                                                           

So, which is your way of saving money? Aren’t all required to save more?

How Short-Term Personal Loans Can Help You In Fulfilling An Urgent Financial Need

A situation of financial crisis or an emergency to fulfill a financial need can be anybody’s combat at any time; it is impossible to get the exact foretelling about it. As a fact, countless people tend to face it during economic crises or pandemics. This is the time when one has no option but to take a loan.

While this is a suggested solution, it works as an effective solution only if one knows which type of loan to take. Well, this decision or selection is based on many factors such as ongoing income, the purpose of your loan and the ability to repay on time with interest.

In case of an emergency such as an urgent unavoidable requirement, whether personal or professional; a short-term personal loan is recommended. Well, it is recommended for good reasons. In this post, let’s explore the same.

Credit card and pen

Overview of Short-term Personal Loans

A short-term cash loan is meant for fulfilling an urgent financial need. The borrowed sum is typically repaid with interest mostly within a year. To get this loan, you decide to borrow a sum from a reliable lender, which is such that you can repay on time. You also agree with the terms and conditions of borrowing, which encompass interest rates and stipulated duration of repayment.

The lender and you both decide the date of repayment if the amount to repay along with interest applied is affordable for you. Then, the creditor performs a credit check to evaluate the credit history prior to sanctioning your loan request.

If your application is then approved, you receive the requested sum. Then, you start repaying on the decided date until the full amount is paid.

Reasons Why Short-term Personal Loans Are Helpful in an Emergency

  • No Collateral: This is a motivating reason as you are taking a loan to fulfill an urgent financial requirement. You get the amount without giving any guarantee or asset as security given to the lender.
  • Speedy Approval: This is perhaps the most common expectation of borrowers looking for funds during an emergency. They need quick cash. If the requested application takes a long time for approval, it does not fulfill the need of the borrower. Thus, a short-term personal loan is approved quickly.
  • Minimal Documentation: Unlike other types of loans, these require just a few documents for fast processing of the application. This makes the process hassle-free.
  • Low Repayment Burden: Most short-term loans are paid off within 365 days. This means that the interest amount you pay is lower than that of a standard personal loan.
  • Economical Rate of Interest: The credit for this goes to the high competition in this field of loans. The interest rates on offer are, thus, reasonable enough to attract the probable borrowers.
  • Expansive Amount Range: You can easily expect approval for the amount you want or even higher, if the lender finds that you are a reliable borrower. The approval is reliant on several factors as mentioned above, which inform the lender whether you are a good borrower or not.
  • Adaptable: It is easy to find lenders who can come up with a loan that is ideal for your short-term requirements. Moreover, you can use the borrowed sum for any purpose for which no questions are asked.
  • Minimal Eligibility Criteria: While eligibility criteria for short-term lending differ from one lender to another, they are usually only a few such as nationality, age and income.

Interest Rates

The rate of interest varies from one creditor to another but it typically begins at or above 10%. It could be even less than this benchmark rate. To apply the rate, creditors consider your creditworthiness.

Conclusion

So, do you find short-term personal loans attractive for urgent needs?

6 Essentials For Paying Less Interest On A Personal Loan

Personal loans can come with costly interest rates. However, there are ways to get it reduced. You only need to ensure a few essentials for this purpose.

Good Earning Record

If you have been earning steadily for a few years, it indicates a stable history of income. This itself not only makes you eligible for a personal loan but also gives you the benefit of a lower interest rate. One of the eligibility criteria for acquiring a personal loan is at least two years of job history and/or a year with the present company.

If you are working at a famous private company or a public organisation, you get more favourable loan conditions, including a lower interest rate. The underlying belief is your stable income due to which the probability of defaulting is minimum.

Good Repayment History

If you have been earning steadily for the past few years but have been delaying your payments, it negatively influences your creditworthiness. In this case, no lender will be able to trust you for repayment.

On the other hand, if your repayment record is acceptable, the concerned lender will not only happily accept your loan request but also will be willing to settle with a lower rate of interest than usual. So, do pay all your installments and bills on time. It is essential to sustain a good record of repayment, which in turn, helps in maintaining a good credit score.

Good Lender Relationship

If you have a good relationship with the lender or the lending organisation, it is likely to fetch you a personal loan with a good bargain. You can easily manage to get a discount on the interest rate as well as favourable terms and conditions.

The reason is that your lender knows you well in terms of your credit history and responsible behavior in paying off all dues. Thus, for the lender, the extent of risk involved in lending to you is less than to an unknown borrower.

Reducing Balance Method Calculation

The reducing balance method is used to calculate the interest to be paid across the loan term. If you do not ensure this, you will end up paying up more interest amount when the term is over.

Typically, lenders use either a flat or reducing rate. If a flat rate is charged, the interest is applied to the full loan principal throughout the term. On the other hand, in case of the reducing balance method, the loan interest is levied only on the outstanding amount to be repaid. 

Thus, this method will make you pay less interest than the flat rate charged. It is always wise to ask the method that your lender uses to determine the interest amount payable on the loan taken so that you can ensure that reducing balance method is in use.

Lucrative Offers

Do not take a personal loan just because you have a good relationship with the lender or have a good credit report for negotiation. Rather, be a bit wise and look for special offers that lenders such as banks tend to give on personal loans. These offers could be the lowest interest rate for a limited time and wide range of loan amounts.

They provide such offers especially during the festive season or recession recovery. During such times, lenders are likely to attract probable borrowers by launching alluring schemes.

Comparison Skills

If you have a good credit score and a steady source of income, you will have the option to choose from a couple of promising lenders. In that case, it is wise to compare their terms and conditions along with eligibility criteria. This will help you grab the most economical deal.

Conclusion

These essentials will surely give you the relief of repaying at a low rate.