Finance Edition

Selling your home

How To Sell

Unless you're richer than Croesus, before you can move house you�ll need to sell the place you currently call home. How easy this will prove depends on factors that are, by and large, completely out of your control.

How long will it take?

This depends on the area in which you currently live, the sort of property you have, and the state of the local housing market. As a rule of thumb - and depending on how pushy you are, how loudly you shout at lawyers and how thick your skin is - you should allow at least two months from the date you accept an offer to the day you move out. Must I use an estate agent? No. Convenience, however, dictates that most people leave the sale in the hands of estate agents, even though dealing with one can sometimes make you feel like you're being force-fed marshmallows! They will draw up the details of your property (how else would you know whether or not your flat is a 'duplex' or a 'maisonette'?), measure up the rooms, help you determine the property�s market value and arrange viewing with potential buyers.

How much do they charge?

Most estate agents take a percentage of the price as their fee, paid in full when the sale is completed. This is often between 1.5 and 4 per cent and tends to be higher in London than elsewhere.

Who to choose? You can sign up with one company on a 'sole agent' basis, or take on several as 'joint agents'. The fee tends to be higher if you do the latter, but you increase your chance of the property being spotted by buyers.

How much economy with the truth?

Everyone expects a certain amount of embellishment in estate agents' descriptions - any flat will become a 'luxury apartment' and if you live within five miles of a particularly desirable area you will suddenly find yourself on its borders. However, downright lies are unacceptable. Your estate agent has a legal obligation to provide accurate information about the property. This means accurate measurements for rooms and truthful descriptions of facilities. So if you haven't got gas central heating and sole use of the garden, don't let the agents say you have. Do, however, make sure they don't forget to mention any particularly desirable features.

What are my other options?

An alternative to signing up with an estate agent is to use one of the new online property marketing companies. These will, for a fee, provide you with a 'For Sale' sign and printed descriptions of your property. You could even produce these yourself, but remember that nothing is more likely to put off prospective buyers than a shoddily-made sign.

How to show your property

Soft or hard sell?

How you show your property can have an impact on how long it remains on the market. Don't be too pushy or you may put people off, but don't be too modest about your home. Make sure you highlight things that are particularly good about it, and if you are happy to leave any fixtures or white goods behind, (kitchen units etc) make a point of mentioning this.

How will I find out about offers?

An estate agent is obliged to pass on any offers that are made on the property - even if they are ludicrously low. It is up to you how much you accept, and your decision is likely to be influenced by how quickly you need to sell the property.

What happens after I accept?

When you do accept an offer, your solicitor will be sent a series of questions by the buyer's brief, and these will be passed on to you to answer. As well as covering what fixtures and fittings are being left, there will be enquiries about boundaries (which bit of the garden fence is your responsibility, for instance), any alterations you may have made to the property and your relationship with your neighbours.

Honesty - the best policy?

Love thy neighbour?

Obviously, the seller won't care if you've been having an affair with Mrs Jones at number 44 for the past year, but they�ll want to know if there are any ongoing disputes with your neighbours. Failure to disclose this is illegal, and if the dispute continues after the new people move in you could find yourself on the wrong end of a lawsuit.

Where do I sign?

Once you have returned the enquiry form and the contracts have been drawn up, it's time to exchange them. It's at this point that you agree a date for completion - the date you have to move out. When that day arrives you must drop the keys off at the estate agent where, after your solicitor calls to say you�ve got the money, the new owner can pick them up.

The completed story?

Now, as anybody who�s bought a property will tell you, unless you�re incredibly lucky and everything clicks smoothly into place, you�re bound to hit a few snags that will put weeks onto the process. And until contracts are exchanged � the penultimate piece in a very big jigsaw � it can all go pear-shaped and you�re back to square one. It ain't over till that lady signs�

Summing Up Final thoughts

Bear in mind that your property is your biggest asset. Although the meek may inherit the earth, when it comes to property transactions the meek tend to get shafted. Be aggressive. Remember: you didn�t put your house on the market to make friends�

How to save money on your mortgage

They say a change is as good as a rest. This is certainly the case for some borrowers, who will find switching to a new mortgage deal can knock thousands of pounds in interest payments over the life of their loan.

For anyone who currently pays a lender's standard variable rate (SVR), remortgaging could be a way to save hundreds of pounds a year.

Remortgaging means replacing an existing loan with a new one from a different lender - although it is not uncommon to hear people say they have remortgaged when they have simply taken a new deal from their existing lender.

This is often a good option, as it cuts out the need for a new valuation and searches, and as a result reduces the cost of getting a new mortgage.

Why remortgage?

As a potential remortgagee, you need to establish whether you have anything to gain by moving your mortgage.

There are a number of things that can be achieved by a remortgage - you could cut your rate, release equity that has built up in your property, or move from a variable-rate deal to a fixed rate making it easier to manage your budget.

The most popular reason for remortgaging is to reduce monthly repayments. If this is your motivation you should look at the rate you currently pay and then see if there are any better rates on the market.

If there is a better deal, ask your lender if it can offer you anything similar. It should be willing to move you on to a lower rate, unless your current mortgage is subject to early redemption charges.

Early redemption charges

Early redemption charges are levied if you repay your loan in a certain period.

They are often found on deals with a special offer rate upfront - for example a fixed or discounted rate - and are designed to help the lender recoup the costs of setting up the deal. (Or, to be more cynical, these charges allow the lender to recoup in one hit all the profit they expected from the full duration of the loan.)

Usually, the charge is a percentage of the loan you are repaying, or a number of months' interest. Most charges are payable only during the special offer period, but in some cases they are levied beyond that - these are called overhanging redemption charges.

To pay or not to pay?

In some cases it may be worth paying this fee - for example, if you have several years left on a very high fixed rate after the sweet deal has ended.

Often, though, it�s worth sitting tight until you can walk away from the deal without paying hundreds of pounds for the privilege.

Ask your lender for a redemption statement outlining the outstanding mortgage balance and how much you need to pay in charges.

On top of redemption fees, most lenders charge a sealing fee and/or a fee for releasing the deeds, which can add up to around another �100.

What you will save?

Once you have an idea of the cost of getting out of your current deal, you can work out what savings there are to be made.

Using an online mortgage wizard or mortgage calculator, work out what the monthly repayments will be on a new deal, and compare these with your current payments.

Factor in the costs that may come with a new deal - any arrangement fee, valuation fee and conveyancing costs - and you can see whether there are genuine savings to be made.

In some cases there will be very little in the way of upfront costs. Many lenders offer remortgage packages, including a free valuation and free legal work and waive the arrangement fee on new loans.

This can be handy if you have a small mortgage; but on a larger loan it may be better to look for the lowest rate rather than the best incentives.

Remortgaging to release equity

All of the above also applies if you're remortgaging to release equity from your property.

This is an option of your property has increased in value, or you�ve paid off a lot of your mortgage, and is simply a matter of borrowing more than your current mortgage debt.

To do this, you need to earn enough to raise the new loan (see guide to borrowing). Remember, if you�re arranging a loan over a shorter period than your original mortgage you'll need to earn more to raise the same mortgage.

Taking the first steps In most cases, arranging a remortgage will be fairly straightforward and will take much the same form as arranging your first home loan.

Your new lender will ask for paperwork to support your application, including proof of your income and your outgoings. They will carry out a valuation - although on a remortgage the surveyor may just drive past the property - and ask for information about your home.

Some will want you to instruct - and pay for - a local authority search; others will accept title insurance - a policy covering them against anything that would have been uncovered in the search.

Your solicitor will organise the searches, and handle the switch over from your current lender to your new one.

Costs and time

The total legal costs should be much lower than when you bought the property, as there are no contracts to prepare and there is no stamp duty to pay.

However, you should still budget to spend �300-�500, unless your new deal comes with free legals.

It shouldn't take long to replace your current deal with a new mortgage, but if you�re coming to the end of a fixed-rate or discount period you, can start shopping around some months in advance.

Most mortgage offers last for around three months, and if you plan ahead you can have a new deal sorted out to start the day the special-offer rate ends. This means you can hop from one fixed rate to another and avoid paying over the odds for your loan.

Buying a property guide

There comes a time in most people's lives when they decide to take the property plunge. Perhaps you've reached the point where you want a place of your own; or perhaps you've been renting and had enough of paying someone else's mortgage. Whatever the reason, the months it takes to buy your first place are likely to be some of the most exciting - and anxious - of your life. But before you start gazing through estate agents� windows, you need to work out how much you can afford to spend. There's no point setting your heart on a three-bedroom townhouse in Chelsea if your budget will only run to a studio flat in Chesterfield. Establish how much you can borrow (see guide), add the amount you have in savings, and you have a good idea of how much you have to spend.

Budget

Once you know your budget you can go househunting. Keep an eye on properties in the local paper, look in estate agents' windows and surf property websites. The only thing you should worry about is getting addicted to the search - paranoia about missing the perfect property could have you logging on to check out places in the middle of the night. Register with local estate agents who will, if they're doing their job properly, give you a call if an appropriate property comes on the market. This service is free and is simply a matter of giving them details of the sort of property you are looking for and your budget. However, you don't always have to sit back and wait for the estate agents to come to you. If you see an interesting property advertised, you can call the estate agents and ask about it, even if you�re registered with them. Some estate agents may try to talk you up on price ('I�m afraid you�ll need more to buy that third bedroom'), but if you know your budget is realistic, stand your ground. If they're right, and there is nothing to suit your budget in the area, you need to think about widening your search. Don't be afraid to ask the agent a few questions before you arrange a viewing - if there are certain things that would put you off a property, for example a lack of central heating, there's little point taking a look.

Priorities

It's easy to get overwhelmed when you first visit a property - particularly if you encounter a weird seller or pushy estate agent. One way to make sure you remember what to ask and look out for is to write yourself a list. Take this, and a pen, with you to viewings and don't feel embarrassed to refer to it or make notes. Every property is different but there are some key things you should look out for, things which could be expensive - or difficult - to remedy. One is noise, whether from neighbours or traffic. If you like a property, it can be a good idea to visit again at a different time of day to see if the noise level varies - for example, the road may become a rat run during the rush hour. Other things to look out for are damp - look for patches on walls and for signs that parts of the property has recently been redecorated; subsidence - look for cracks in walls; and nearby trees that could undermine the foundations. Look at as many properties as you need to before making a choice. It could take 20 viewings to find somewhere that suits you; it could take two. Your gut instinct about a property is important - but use your head too. When you have found a property you like and want to buy, you need to make an offer through the estate agent. They are obliged to pass on every offer to the seller, so it's worth a try even if your budget is way below the asking price. Just don't get carried away and increase your offer beyond your budget.

Solicitor

Once you've had an offer accepted you need to instruct a solicitor to do the conveyancing work (see our Coveyancing Guide) and make a mortgage application. The lender will organise a valuation by a surveyor who will visit the property and check it�s worth the amount you intend to pay. It's a good idea to have your own survey done to make sure there are no hidden problems - you can cut costs by getting this done at the same time as the valuation. Unfortunately, the law in England and Wales means at this point the seller is not obliged to go though with the sale. In fact, they can keep the property on the market right up to the point when you exchange contracts. Gazumping - where the seller accepts another offer after yours - is fairly rare, but if you�re worried about this possibility try making your offer subject to the property being taken off the market. Some insurers offer gazumping policies, where any money you have spent on the purchase will be covered if you do get gazumped. For most people, however, it's a matter of crossing your fingers and trying to get the purchase through as soon as possible. As long as the valuation and survey are fine and your solicitor is happy with the contract prepared by the seller's solicitor, the sale should continue without hitch. You can start talking about a moving-in date as soon as the offer is accepted, but this will only be put into writing on the day contracts are exchanged. That's the day when the sale is finally confirmed and neither you or the seller can pull out. Completion - the day when you finally own the property - usually comes two weeks later.

Doing Business in Europe - European Business Culture

If you're looking to expand your client base and take your product to new frontiers, then taking your product to Europe could be the answer. However the difficulties you might expect to face won't necessarily be the ones you actually do. You might be worried about something small like the language barrier and meanwhile other problems are looming that need more drastic attention.

When doing business abroad, you need to remember 3 vital things:

cultures
quality vs speed
language

Well actually, it should be plural, cultures. In Europe there are many cultures that need to be understood and appreciated. The business environment in Europe is vastly different from that of the US. They have their own currency and their own entirely unique way of doing business. Be careful of trying to deal with Europe business people like you would customers back home.

Northern Europe however has a business model and style that is quite similar to America. Eastern Bloc countries are very willing to deal with Americans. Since the USA became the icon of freedom, these countries and areas are very happy to send business the way of US citizens businessmen.

However in the older areas of Europe, in the more traditional cities its vital that treat the business people you meet with respect and with a bit of knowledge as to how they like it done. Do some research and educate yourself on the customs and history of the people you're meeting with. If you've never travelled to and spent time in the country that you're now trying to do business in, you've got yourself a problem.

What is normal business practice and ethics to you, might not be so to the people you're dealing with. Granted it might be a bit outdated, but remember that you're trying to get their business. Be prepared to do things their way. To these traditional businessman, having a product of high quality is more important than having a lower quality product at a cheaper price. Granted its not the standard with all Americans, but Europeans are of the opinion that they are somewhat pushy. Americans call it business like, Europeans say pushy. Keep this in mind and try to tone things down a bit, for your sake.

Don't fuss to much about learning the knacks of the language of the Europeans. Most business people accept English as the language of international trade. What'll be best is if you learn the basics of the languages that your clients speak. Show that you've made the effort to meet them halfway. Most times they'll thank you and tell you to continue in English�probably to both of your advantages.

The French however are very protective of their language. So if you're dealing with the French businessman, take a few extra precautions to learn the language. Use it when you can and your effort will be rewarded by a warm smile.

Having all the language skills in the world, but sans understanding of the culture will leave you up the creek without a paddle. Learn the culture and history. People who are passionate about their country, which is pretty much most of Europe, will speak of history like it happened yesterday. Share their passion for their country.

Business is business however and it all boils down to honestly and good service and products. Tie all these facets together seamlessly and your Europe business trip will prove to be worth your while.

Three Investment Saving Plans

Many struggle with saving to begin with, never mind having multiple savings accounts. However this is the strategy that leaves many with the key to secure wealth. Why have three accounts? Well for five reasons.

Emergency Account

Things like your car, your health, your children and your home are bound to have unexpected problems that need immediate resolving. The appliances in your home are almost always liable to break or need repair. Also between Christmas, birthdays and anniversaries, its vital that you budget for presents to make sure that you stay in the good books of your loved ones. Your children's education has many hidden expenses that need to be budgeted for. Your health is never constant and having some saved up cash to cover those unexpected health problems cannot be over emphasised.

Retirement

Unfortunately most people only start saving for their retirement when its too late. Some analysts have said that most people under budget for their retirement by as much as 20%. With such a large deficit, many find themselves unable to retire.

The last three reasons are divided up into short, medium and long term savings plans. Lets explain these three.

Short Term

Short term plans can range from as little as 3 months right up to 36 months. This short term plan is especially designed for luxury type expenditures, larger emergencies and annual payments like school fees etc. You could go even shorter with a 32 day fixed deposit account, money market or government retail bond account. Look carefully at your needs and decide which account will suit you best.

Medium Term

This savings account is usually a three to six year plan. This is the plan that you'll use to save for your car or a deposit on a home. For this purpose a unit trust account is probably best. The cost of investment is usually around 5% and in the case of an emergency, you can withdraw some of your cash within 48 hours. Bear in mind though that this will cost you.

Long Term

Six years and upwards is the length of a long term savings plan. This is essentially for your retirement. For this purpose, the stockmarket or property market is the best way to save, invest and have your money work for you. You don't have to be a genius on the stockmarket to keep your money growing. By having a basic portfolio of 12 shares, a little education and a lot of commitment, you can invest your money safely and have it working for you in no time.

Clearly then, saving properly is not a quick job and shouldn't be done quickly either. Take your time and slowly build up your savings accounts and sooner, rather than later, get your savings plans working for you!

House Buying Tips � Buying a New Home

Looking for real estate can be a daunting task for even the most seasoned home hunter. Rest assured though, it doesn't have to be as difficult as it sometimes seems. Putting to good use a few handy tips will soon put you in the position of a home owner: investing your money instead of paying rent to someone else.

Remember that you can have a 5 bedroom mansion, but put it in the slums and your house is worth nothing. Location is everything. Make sure that you balance your requirements in a home, with having a house in the right place. Keep in mind your property's proximity to shops, bus routes, schools etc.

Before you even start house hunting, set your budget and be determined to stick to it. Most financial consultants will recommend that you plan to have a monthly payment of no more than 20 or 30% of your monthly income. Perhaps you might be considering putting aside things like eating and clothing in preference to your dream seaside mansion, but remember the importance of continuing your saving habits for your retirement etc. Set a reasonable, wise and practical budget and stick to it.

Whilst you're working out your budget, include some thoughts on what you want in a home. What's important to you? Trust your gut too. If you're not 100% happy about the house that you're looking at, trust those feelings. When you see the right house, you'll know it. Be prepared when you meet with the realtor about the home. Ask questions. Ask lots of questions. Preparation beforehand as well as experience will help you not only to ask the right questions, but also to differentiate between a smooth talking realtor and a straight talking realtor.

When you get that feeling that you've found your home don't sign anything just yet. Mull it over for a while. Go back a few days later and look at it again. Sleep on it. Make sure that you're not compromising on any of your requirements because you spotted the Jacuzzi in the main bedroom!

Think carefully and perhaps get some 3rd party comments on the home and then decide on an offer to make. Ask around at other agencies to see what homes in the area are selling for. This'll give you a good idea of what others feel about buying in this area and also what the potential resale of your property could be.

Remember that you won't always have someone who's on your side, so to speak. The agent that you deal with will be the seller's agent and he's interested in his commission. So keep that mind as you go through dealings with the agent.

All said and done, buying a house doesn't have to be a nightmare. Proper planning and patience will be rewarded.

Student Credit Cards

Are you responsible enough to manage your own finances? And more specifically, are you ready to manage a credit facility? These are questions you need to ask yourself, and answer honestly, before you even start looking at the various student credit card deals available to you.

What are student credit cards?

Student credit cards cater exclusively for students studying in higher education institutions. Whilst most normal credit card packages will require to you have a minimum amount of regular income before approving your application, most student credit cards will not require any form of fixed income. The catch is that student credit cards will usually attract a higher rate of interest than normal credit cards, and providers will often try to blur this scary fact by offering prospective student credit card holders special offers such as, free CD's, store discounts when purchasing with your card, etc.. In most cases you will also be required to settle your student credit card UK bill in full each month. Failing to do so will result in your interest rate being raised and late payment penalties being levied. So it really does help to be as educated as possible and to spend responsibly, remembering that when you do charge a purchase to your student credit card, you are in fact borrowing cash and will have to repay it, sooner rather than later. You will also find that although student credit cards may come with special offers as mentioned above, they will not attract the normal benefits of regular credit cards such as, cash-back on purchases, voyager miles, low-interest periods, etc..

Drawbacks to student credit cards.

Most students will have a current account with an overdraft facility in place, as well as a student loan. Adding a student credit card application to the mix means potentially holding three credit facilities at the same time, and if you don't manage to stay on top of your finances, your student credit card UK could end up costing you a lot of money as well as resulting in a poor credit record which will have further negative implications in the future.

Advantages of student credit cards.

On the other hand, if you keep your finances in check, operating a student credit card can help build a sparkling credit record which will really pay off once you've graduated and are looking to finance anything, from a car to a new house. Of course, the most notable reason for completing a student credit card application has to be that you more than likely will not have a regular, fixed income during your time spent studying and therefore, operating one of these cards can seriously help you during periods when cash is tight. So a student credit card can give you a modicum of financial freedom and allow you to focus more on your studies instead of worrying about how you're going to get through the month.

Alternatives to student credit cards.

One of the alternatives to getting a student credit card, is to shop around for a regular credit card that doesn't require a minimum amount of income, or will accept a lower level of income than normal cards. The interest rates on these cards may not be the lowest around, but they should be easier on your pocket than student credit cards, although you may find no special offers on the table. By working part-time or getting a holiday job, you should be able to find approval for cards that require a low level of income.

Summary.

So, to summarise, make sure you are ready to deal with your finances in a responsible manner and prepare yourself for a lot of shopping around before signing a student credit card application. Student credit card providers want your business because they know that you are right at the beginning of your financial life and if they get your business now, they will most probably have it until you die, so don't just accept a student , credit card because it's been offered to you. Take some time out to compare different student credit card deals, as well as normal cards you may qualify for (those which don't require high levels of regular income). Keep track of your spending habits as closely as possible and once it becomes routine, you will find controlling your finances to be a cinch instead of a nightmare.

Refinance Your Car Loan

Are you unhappy with the interest rate or monthly repayment amount in respect of your current auto loan? To refinance your car loan can be a quick and painless procedure and, if you do your homework, you can literally save thousands over the long term.

What is car loan refinance?

When you refinance your car loan a second lender pays off the balance on your current auto loan and takes ownership of the debt you have with your current lender. The reason a second lender will be prepared to do this is obvious � they want to earn the interest you have been paying to your current lender. But, in order to do this, they need to lure you away from your current lender by offering to refinance your car loan at a better interest rate than your current deal attracts. So the company you get to refinance your car loan scores and so do you.

Why refinance your car loan?

The main reason for wanting to refinance your car loan is to save money. You may have signed your current loan agreement when interest rates were higher and are now looking for a lower interest rate. Maybe you didn�t read your initial terms and conditions properly and are now stuck with a monthly repayment figure which is too high for you. Whatever your situation, you should be able to shop around online and find a more favourable deal with which to refinance your car loan.

Bad credit car loan refinance

If you have an adverse credit record, you can even find companies who are willing to offer you a bad credit car loan refinance deal , and, whilst a lot of people out there may presume that, because of their bad credit history, this will be a difficult process to go through, so long as you currently are a responsible payer it is not nearly as complicated as you may think to obtain a bad credit car loan refinance deal.

How to refinance your car loan

When planning to refinance your car loan, you have a few options available to you. You can refinance your car loan through a lending institution or dealership or you can carry out the procedure through an online car loan provider. Online providers tend to be the more cost effective option as many dealerships have an incentive built into their financing options which benefit the dealer him/herself and end up costing you more. You can also visit a lot more online companies in the space of an hour, than physical dealerships or lenders, and having as many quotes as possible is exactly what you�re after in order to be able to secure the most favourable deal with which to refinance your car loan.

Summary

When choosing the company you are going to refinance your car loan through, always ensure that you are dealing with a reputable, well established firm. Make sure that you have read and fully understand the terms and conditions of your agreement and whether or not there are any hidden costs, early redemption penalties or refinance clauses. When you apply for a deal to refinance your car, their should be no initial obligation on your part to accept the offer. This allows you to gather as many quotations as you feel you need in order that you can compare the savings you will be able to make depending on which company you get to refinance your car loan UK . And, as is always the case regarding loan agreements, shopping around to compare prices as well as ensuring that you have closely read all the fine print, is key to making certain that you get the best deal possible.

Phone Insurance

Probably the most underutilised of all insurance products in the U.K. is phone insurance, and considering the cost involved in replacing a handset when no mobile phone insurance UK policy is held, this is a worrying fact. Less than 30% of handsets are covered by phone insurance and whilst most people think that their householders insurance policy will cover them in the event of damage to or loss of their mobile phone, there is only a 20% chance of this being so.

The importance of cell phone insurance.

When you sign a 12 month contract with a service provider, you are promising them a full year's worth of business, and for this they are prepared to subsidise the cost of your handset. If you don't have phone insurance and your mobile is damaged, lost or stolen, you will have to foot the bill of replacing it and this can be extremely costly. A handset that costs �9.99 to purchase at the time of signing a contract, and is not covered by cell phone insurance , will cost you in the region of �200.00 to replace, should the need arise. Having said this, the latest handsets on the market can cost as much as �1000.00 � not an expense you want to have to deal with if you have no mobile phone insurance UK. To make matters worse, if you hold no phone insurance policy and cannot afford to replace your handset, you will still have to pay your monthly subscription fees in terms of your legally binding contract.

How to acquire a phone insurance policy.

There are countless phone insurance providers in the market today, and most contract phone retailers will either try to sell you their own phone insurance product, or that of a company with whom they are affiliated. However, by shopping online will you be able to gain a clearer picture of the various types of phone insurance products on offer and will almost certainly be able to find a more comprehensive, and possibly more cost effective mobile phone insurance UK policy than that offered to you at the point of sale. A lot of cell phone insurance companies will offer you cover from as little as '�3.00' a month or '10p' a day. Realistically though, these companies will not provide you with the same sort of protection as phone insurance providers whose costs are a little higher up the scale.

Read your terms and conditions.

The single most important tactic you can use when signing a phone insurance policy is to read the terms and conditions of the policy - CAREFULLY. According to call centre employees, the reason why most customers phoning them become enraged is because they simply do not have the level of cell phone insurance cover that they thought they had, and this can be attributed to the fact that they chose to listen to what the sales assistant was telling them instead of taking the time out to go through the terms and conditions themselves. A sales assistant will always tell you that you will be covered in every eventuality � they are salespeople, they work on commission, they want to make the sale! Points to look out for when scrutinising the terms and conditions of a phone insurance policy include excess clauses, how easy the claims process appears to be, how comprehensive the mobile phone insurance UK policy is (i.e. look out for exclusions relating to water damage, accidental damage, etc.), whether or not you will be covered when travelling abroad and what sort of level of unauthorised calls will be covered in the event of theft. There are other points to be wary of, but by shopping online and doing a little bit of comparative analysis, you will quite easily be able to identify the more beneficial phone insurance policies available to you.

Summary.

Phone insurance is a product on its own and if you look carefully, you will find that other types of insurance policies that are prepared to include some sort of phone insurance clause, will not actually provide you sufficient cover, especially in the event of an occurrence not usually covered by specific phone insurance policies which are fully comprehensive. So, buying phone insurance as a separate product can offer you more protection, but it can also do this at less cost. The bottom line is, never underinsure anything as you're just wasting hard-earned money, and always make sure you're getting as much value for your Pounds as possible.

Designing a Budget, make you money work for you

Having a budget is the best way to control you money. All to often so many people find themselves wondering where all their money has disappeared to. Have a look at these steps and put them to good use in forming a budget.

Work out your take home pay
Verify your bills & expenses
Watch your expenses
Saving for retirement
Don't spend more than you earn

Work out your take home pay

Its vital that you firstly work out how much money you're making each month. This is the starting point for all budgets as you need to know how much money you have to spend each month. If you find yourself in the position where you, month after month, come up short on your expenses, you either have to find a second job, or cut back on some flexible expenses.

Verify your bills & expenses

This applies to money spent each day. Keep a notebook or a PDA record of all monies you spend towards odds and ends. This doesn't include your standard monthly bills.

Watch your expenses

Get a basic software program, or setup a spreadsheet that will allow you to keep track of your expenditures and incomes. For example on your spreadsheet you would outline your expenses like food, clothing, fuel, savings etc. Then you need to divide those expenses into your take home pay. They key to making a budget work of course, is to stick to it. Once you've outlined the amount you're going to spend no a certain item, you then need to stick to that amount and not exceed it. Doing this properly will inevitably lead to you being able to save a little bit more each month because a budget helps you to cut down on unnecessary expenses.

Saving for retirement

A vital feature of a budget is to have an allocation for saving for your retirement. Saved money is always helpful in providing that ever needed cushion in case of an emergency like loss of employment etc. Don't put off saving. Start immediately even if its only a small amount to start with. As your budget starts to take effect, you'll be able to put aside more money towards your savings. Speak to your employer to see what kind of savings program they might have set up for employees. If they have a 401k account, this could greatly help your savings. Alternatively, speak to a consultant about wise ways to save money.

Don't spend more than you earn

Generally, people sans a budget are inclined to spend more than they make. It takes great restraint and deep commitment to your budget to successfully save money for a rainy day. Cutting back from a current habit of spending is difficult and will take a while to perfect, but continue to work at it. Curb your spending with your budget constantly in mind.

Setting up your personal budget shouldn't be done overnight, but rather with some careful planning, you can take a few days or even weeks to put together the perfect budget.