Cash vs Credit? Which One Should You Go for?

This is a million dollar question without any doubt. Financial professionals can solve the matters involving huge sums of money, develop long-term plans for corporations and make decisions strategically. However, when it comes to answering a simple question of choosing between cash or credit, they are usually unable to decide. The truth is that there is no definite answer to choosing between cash or credit scheme for you. It all depends on your personal circumstances.

Going for a cash or credit transaction also depends on your budget, credit ratings, financial standing, annual income and many other factors. Also, you should decide keeping the specific transactions in mind. Interest rate and need for urgency is one of the strongest things which will help you in determining the right choice for you. Other than this, you should also consider many different things before you choose between cash or credit cards for a transaction.

Consider the Urgency of Your Transaction

If you need to buy something on an urgent basis and you don’t have money for that, you should definitely go for a credit card purchase. As compared to a regular loan from bank, buying on a credit card can lower your total costs. Buying something on credit card can also give you sufficient time to make the repayments. If you don’t have the cash amount to buy something you need on an urgent basis, going for a credit card transaction is the best option.

Calculate Interest Rates

This is the second most important consideration. Before going for a transaction, make sure you compute interest rates properly. It is very important to make an estimate of the total cost you will incur after calculating the interest rates. It is much better to pay in cash than on elevated rates for interest which will make a heavy difference to overall amount. Depending on your circumstances, make sure you never end up paying more than you are required.

Always Go For Cash If You Want To Follow a Budget

If you want to strictly follow a budget, purchasing on credit card is the worst choice. It will become difficult for you to stay within the limits of your budget if you regularly use your credit cards. Other than this, credit involvement in your transactions will also affect your limits in a bad way. To stick to a budget, make sure you always pay in cash.

Consider the Amount of Money Involved

If you are making a huge purchase, it is essential to follow a secure method. Paying in cash is never a safe option. You should not be carrying large sums of money with you. There is always a risk of natural disaster, theft and robbery involved. Paying through credit card is the best option when it comes to larger amounts. There are fewer hazards and dangers involved. However, when dealing in credit transactions, make sure you are aware of  fraudulent scams and credit card duplicity.

Whether you should go for credit card or cash transactions depend on these factors. Apart from this, there are also many other contributing points that will help you in deciding the right option for you.

How to Help Your Grandchildren Pay for College

Grandparents can help their grandchildren succeed in their professional life by funding their educational life. They can send their grandchild to school by preparing for their future in advance or helping them with their college fees when they get older.

If you are a grandparent who wants to help their grandchild get a good education at a respectable university, here are a few ways you can help them pay for college:

1.      Provide them with a Loan

If your grandchild is about to head off to university, you can provide your grandchild with a loan to help them pay their college institution fees. You can provide them with a loan worth up to $10,000 without interest. If you want to provide them with a loan more than $10,000, the Internal Revenue Service (IRS) will charge a low interest fee.

You can establish the terms and conditions of the loan as well. For instance, you can allow the interest accumulate until they graduate, request to receive only interest payments for a specific duration, or convert the loan into a graduation gift.

2.      Repay Their Student Loans after They Graduate

Grandparents can repay their grandchild’s students loans after the graduate. By promising to pay off their debt, it will give your grandchild an incentive to stay in college and graduate. On their tax return, they will be able to subtract an interest up to $2,500.The downside of the loan is that the loan will be considered as a gift, which means that any amount more than $14,000 ($28,000 for married couples) will be taxed.

3.      Invest in the United States Savings Bonds

The process of buying the U.S. Savings Bonds is easy and people can do it by going to their local bank. By investing a savings bond, people are making a safe and risk-free investment in their grandchild’s future. People who have newly become grandparents can invest in their grandchild’s future now. People who invested in bonds at the age of 24 and after 1989 can redeem them tax-free.

4.      Establish a College Trust Fund

Another way grandparents can help secure their grandchild’s future is by setting up a college trust fund. When they become older, they can use the trust fund to pay for college. Grandparents can restrict their grandchild’s access to the trust fund. It does not matter what age the grandchild is for their grandparents to restrict their access.

If they opened a trust fund when the child was born, they can allow them access to it when time comes for them to go to college. Moreover, grandparents can indicate their wishes in the agreement and the trustee, the grandchild, will have to obey and fulfill them.

Grandparents can help start funding their education when they are young or start funding it when they get older. Grandparents do not have to help in entirety either, but as much as they can. With the rising cost of education, a little help goes a long way.

Take A Car Loan For These Fuel Efficient Cars

Acquiring a loan for a car could be a tough job and hard on some people’s financial status, however the hassle is worth it when you get the car of your dreams. And with that it is also important that the car you are planning to purchase is fuel efficient.

The Fuel Efficient cars consume a decent amount of fuel without wastage at all. These cars are designed in the favor of environment as well as fuel supplies so to keep a balance with all the needs of transportation being met.

Why Are Fuel Efficient Cars taking Over the Market by Storm

One of the basic questions which often appear in the minds of people, especially the ones planning to purchase a car, is about the immense popularity of the fuel efficient vehicles.

a)     Saves Running Cost

A car which is fuel efficient saves you a lot of money when it comes to the running cost of the car. The wastage of the fuel otherwise costs a lot more than one would have expected which increases the maintenance cost of a car as well, as a result it is heavy on one’s pocket.

b)     Same Level of Performance

While oil prices have recently hit new lows, more people are shifting from fossil fuel burning vehicles to vehicles that use alternate energy. Many popular fuel efficient makes today are able to deliver the same level of performance as their fuel-dependant counterparts.

c)      Better for the environment

It goes without saying that the fuel efficient vehicles are very much environment friendly with minimal fuel wastage. Vehicles that run on alternate energy also eliminate the toxic emissions of hazardous gases that can harm the environment.

Fuel efficient cars aren’t only ideal for the environment and the buyers, but also for the manufacturers and hence car dealers. This is because the fuel efficiency is one of the factors which has been highlighted for being behind the spurring sales of cars.

Which Ones are the Fuel Efficient Cars?

One must be in search of the fuel efficient cars for the numerous benefits they provide. Some of the options to consider are:

1)     Hyundai i20 1.1 CRDi Blue(88.3 Miles Per Gallon)

2)     Peugeot 208 1.6 BlueHDi (94.2 Miles Per Gallon)

3)     Vauxhall Corsa 1.3 CDTI ecoFLEX (88.3 Miles Per gallon)

4)     Toyota Mirai 113kW Auto (100 Miles Per Gallon)

5)     Toyota Prius 1.8 VVT-I Active (TRK) CVT (94 Miles Per Gallon)


The fuel efficiency differs a bit when it comes to the real consumption of fuel. However, there isn’t a striking difference between the two. The fuel consumption differs when driving within city limits and when on highways.

Opting for a fuel efficient car or switching to one is considered an ideal choice as the benefits in the long term are worth it. Make it a point to prioritize the fuel efficiency factor above all when making your next purchase of car.

Your One Stop Guide to Filing Taxes

Most people dread going into the tax filing season. Tax filing is an obligation that every citizen of the country who is able to file their taxes should and must do. Irrespective of whether you are employed, self employed, running a business or unemployed; everybody needs to file their taxes to keep the government updated as to your financial situation. The taxes we pay are our contribution to the running of the country.

Unfortunately, the reason most people dread tax filing is because they know very little about it. This article acts as your one stop guide to filing taxes.

1.     Choose the Right Documentation

Tax filing involves filing in the right forms. There is a number of different tax filing forms that you should fill. Here is a look at some of these tax forms that you need to fill.

·         Form 26 AS

This form basically lists down the payments that your business has made to you in the financial year. The money need to be tax deductable and should be paid. This form also includes details of any advanced tax that you may have paid during the financial year.

·         Form 16/16A

Form 16 is usually granted to salaried individuals. The form is available from April to June and needs to be filled with care.

·         Income Statement

This is admitted to your tax return with the Form 16/16A. The income if any that you generate from your sale of investment and dividends is also recorded in this form as well as any other income that you may have earned during the year.

2.     Deciding on Which Form to Fill

The form you choose will depend on your filing status and whether you are a salaried individual a freelancer or someone who is running their own business. Different forms cater to different people. Your marital status also has an important role to play in which tax form you go ahead and fill. In the tax filing process you can either be the head of the household, a dependent spouse or single. If you are divorced you will come under the single tax filing status.

3.     Calculate Your Tax Liability

Once you have filled in your tax form, you need to calculate the tax that you are liable to pay. Not many people know how to calculate their taxes which is why there are a number of applications online that help you calculate your taxes. Whatever the tax amount you calculate, make sure you pay a little more than that to cover up for any discrepancy. If you pay more taxes than you should have, you will be able to claim and get a refund from the IRS.

There are a number of things that a tax filer can claim a refund on. Some of the things that you may claim a refund on include:

  • Education expenses of your children
  • Energy efficient home improvements
  • Expenses to grow a business.

4.     File Your Taxes

Once you have collected all the required information to file you taxes, you should go ahead and file your taxes with the IRS. Tax filing should be completed before the due date. If you think you cannot file your taxes on the due date, you can ask for an extension of a few days in the filing deadline by contacting the IRS.

Welcome to my blog!

Hi there and thanks for reading. There’s an aweful lot going on in politics at the moment, so why don’t we start there? (Don’t worry… this is a one-off.) Trump or Clinton–that is the question. Well.. I’m kinda on the fence at the moment. It’s safe to say that both are not without their faults… although… I would argue one has a few more than the other… but I won’t cloud you judgement–that’s for you to decide. On the other side of the coin, they both have a lot going for them. Hillary having once been the First Lady has a tonne of relevant experience! Not only that, she is married to Bill, who was actually the President once… so if you ever needed anyone in your corner when you’re President… it’s another President right?

What about Trump? It goes without saying that this guy is disliked by many. Like I said, I’m on the fence. However, there’s so much about this guy that I admire… but so much about him that just doesn’t add up! That’s not to mention the things that he says… and let’s be honest… the guy has dropped a few clangers! That’s what perplexes me about him. He is supposed to be one of the most intelligent and astute business men in the world. Yet… on a regular basis… the guy comes out with things that are either just plain dumb… or beyond my comprehension, which is completely reasonable. Part of me thinks he says what he does and acts the way that he does to provoke a response; to get a reaction. A large part of me thinks this approach is what has got him to where he is today. We may not like what he says and does sometimes… butthere’s no denying that he’s made us take notice. Whether we like to or not, we wait on his words. A lot of them make sense… and this is almost as dull as the next politician. However, he mixes things up with things that are inflammatory–almost like he’s keeping us on our toes.

Hilary is more like your traditional politician… although… you’ve gotta be as tough as old boots to be a woman and get where she’s gotten to–I admire that. I think her intentions are good… but is she the right choice for the country? I don’t agree with everything she stands for… but I think she will on a whole have a positive effect.

What about the outgoing President? Well… I liked the guy. He got a lot of flak for many of his policies… but I think he’s been one of the best Presidents in recent times! He’s done so much for the country. A lot of which has gone unnoticed, with many getting hooked up on Obama care–sad times.