Stabilize Your Current Situation Before You Invest

Stabilize Your Current Situation Before You Invest

Before you consider investing in any type of market, you should really take a long hard look at your current situation. Investing in the future is a good thing, but clearing up bad – or potentially bad – situations in the present is more important.

Pull your credit report. You should do this once each year. It is important to know what is on your report, and to clear up any negative items on your credit report as soon as possible. If you’ve set aside $25,000 to invest, but you have $25,000 worth of bad credit, you are better off cleaning up the credit first!

Next, look at what you are paying out each month, and get rid of expenses that are not necessary. For instance, high interest credit cards are not necessary. Pay them off and get rid of them. If you have high interest outstanding loans, pay them off as well.

If nothing else, exchange the high interest credit card for one with lower interest and refinance high interest loans with loans that are lower interest. You may have to use some of your investment funds to take care of these matters, but in the long run, you will see that this is the wisest course of action.

Get yourself into good financial shape – and then enhance your financial situation with sound investments.

It doesn’t make sense to start investing funds if your bank balance is always running low or if you are struggling to pay your monthly bills. Your investment dollars will be better spent to rectify adverse financial issues that affect you each day.

While you are in the process of clearing up your present financial situation, make it a point to educate yourself about the various types of investments.

This way, when you are in a financially sound situation, you will be armed with the knowledge that you need to make equally sound investments in your future.

Life Insurance Cost – An Explanation

How is life insurance cost determined? It may not matter to most people but some people want to know how it works. Let us first look at the basics.


In order to calculate life insurance premium cost the life insurance company needs to find out how many people at a given age will die. Mortality tables used by all life insurance companies will give them that information.


The next factor we need to take into consideration is Interest. The life insurance company puts the premium paid together with other premiums and invests them. This money earns interest. The higher the interest earned the lower the premiums of a life insurance policy is likely to be.


It costs money to run any business. Personnel need to be employed and paid. A sales force needs be employed and trained to promote the business effectively. Rent must be paid and an office must be maintained. The company must also pay taxes. All these expense factors affect life insurance premium cost. The lower the expense the lower the life insurance cost will be.


The applicants age also affects life insurance premium cost. The older you are the more the policy applied for will cost.


Health also affects life insurance premium cost. The better the health the applicant maintains the lower the cost will be.


Your occupation also affects premium cost. A person who enjoys an occupation which does not expose him or her to any hazardous conditions will pay less in life insurance premiums than one who is exposed to hazardous every day activities.


If you expose yourself to sky diving, hang gliding or deep sea diving your life insurance cost will be higher because of avocation.

All life insurance companies take these things into consideration when calculating life insurance costs. The premium charged also depends on how efficient a life insurance company is.

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