If you always find yourself booking flights or making hotel reservations, it’s high time that you earn some rewards out of it. You can do this by getting a travel credit card! Flight tickets and hotels can get unreasonably expensive, especially when last-minute travels are involved. Using a travel rewards credit card will ensure that you get to enjoy some perks like waived fees on checked baggage, upgrades on accommodation and other hotel amenities, discounted or free air tickets, cash back, and more. Who should get a travel rewards credit card? Using a travel rewards credit card can benefit you in several ways, but it might not be the best choice for everyone. Therefore, before you apply for one, ensure that you consider the factors mentioned below: Credit score Most providers require their clients to have a good to excellent credit score to qualify for a travel rewards credit card. However, there are secured rewards credit cards available for individuals who want to build or improve credit as well as earn travel incentives. Frequency of use Getting a travel rewards credit card makes more sense if you regularly use a credit card to make purchases or for travel booking. If you barely use one, you won’t earn substantial points to redeem them for any rewards.

With the tax season around the corner, there will be lots of sleepless nights accompanied by sweaty palms. Not all of us are math geniuses and filing the income tax can be a grueling task if you aren’t familiar with the nuances of income tax filing. Hiring a tax preparer can be a costly affair, but the latest income tax preparation software programs are quite efficient in helping you file your income tax. Though these tax preparation software programs have reduced the number of mistakes people usually make while filing their taxes, you are still one step away from making a trivial mistake. This insignificant error can transform into a hefty tax bill or smaller refunds. So, even if you are using a tax preparation software to calculate and file your income tax, there are certain slippery slopes you need to avoid. Take a look at some of the most common income tax related mistakes, and ensure that you don’t repeat these. Math errors Mathematical errors are the most common mistakes people make each year while calculating their income tax. While adding figures or transferring them from one schedule to another will make you the recipient of an immediate correction notice.

A bad credit score refers to a person’s inability to repay a debt (a loan, credit score, etc) on time. Check for dispute and inaccuracies The first and most obvious step to credit score management is to get a copy of one’s credit report and check it for any factual errors or inaccuracies. If there are any mistakes, they should be addressed and disputed with the relevant institutions. Correcting these inaccuracies would naturally lead to a better credit rating. Sometimes, one’s credit report may also reveal identity theft or fraud. This should also be reported and one should take measures to protect themselves in the future. Be prompt with payments While one might pay a bill or installments due a few days late because of unavoidable circumstances, it has a negative impact on the credit score. It is important to set reminders for payments or even automatic payments on a set date of the month if one’s bank account has the feature. Making regular and prompt payments every month is a good way to slowly repair a bad credit score. It is a good idea to always pay loans which have a higher interest sooner so that the sum doesn’t affect you negatively later.

When you immediately need money it is likely that you would check your wallet or your bank account to access cash easily. However, there’s a solution to access cash instantly — liquid assets. What are liquid assets? Easy access to cash by selling off assets at a minimal loss or same value is called liquid assets. Assets such as cash in hand, cash in a savings account or a checking account, government bonds, mutual funds, promissory bonds, treasury bills, etc are considered liquid assets. An asset is treated as a liquid asset only when there are a large number of buyers interested in buying it from a secured market. The easier way to access cash without any hassle is cash in savings or checking accounts or cash in hand. Selling any liquid asset can give you easy access to cash, but there might be a minimal depreciation on the market value of the product depending on when you are selling it. Investors need to make sure there are a few liquid assets that they can rely on before investing in a business. The thumb rule for running a successful business is to never run out of money. Liquid assets are also essential for a layman in scenarios such as layoffs, medical emergencies, or anything that needs immediate attention.

It is important to know all about the different investment avenues before you choose one place to put all your money in. This article lists out seven smart investing tips to help you to understand where to invest your money. The stock market The first smart investment tip is to invest in the stock market to grow your money and accumulate wealth. When you buy stocks or mutual funds, you have a great chance of earning high returns and becoming a millionaire. The stock market is highly volatile, and it is important for you to understand the market and be informed. You should invest in stocks only if you can follow the market regularly. Otherwise, you could end up with a dud stock and lose your money as it is very risky. Mutual funds are better options as you invest in a fund run by professionals. The risk is lesser in this case, provided you invest in the right fund. Some research is required before investing, along with tracking the performance of your investments regularly. Savings accounts This is one of the smartest investment tips to invest your money safely. It is risk-free, and there is no chance of losing your money, but the returns on the investment are very poor.

The stock market is an international market where a large number of people make investments on a daily basis. But most of the time, newbies are unable to make a profit as they lack adequate knowledge. With the help of some smart investment tips, they will understand how to choose the right company to make an investment. They will also learn to judge the current scenario of the stock market and choose an appropriate time for making a specific investment. Here are five smart investment tips for making an investment in the stock market: Choose companies carefully To make an investment, you have to choose one or more than one companies. A random choice is not ideal for this type of market as it may not deliver fruitful results in the future. While picking companies from the endless list on the stock market, you must select the ones which are reputed. Do not make your choice on the basis of the ticker symbols next to their name. Never let your emotions get involved in making an investment This is another smart tip you can follow while making an investment. Many people let emotions rule them when they suffer losses in the stock market.

A 401(k) loan is one of the most significant benefits of a 401(k) plan. However, not every 401(k) plan lets you borrow money. The decision to approve the loans lies with the plan administrator and the employer and this is rare. Most employers provide their employees with this provision. If your plan allows you the provision of a 401(k) loan and you wish to use it, you should dig deeper to know its benefits and drawbacks. Some of the advantages and disadvantages of a 401(k) loan are: Advantages The most significant advantage of a 401(k) loan is that you are borrowing money from yourself. This means you are both the lender and the borrower. Hence, you pay the principal amount and the interest to yourself. The best feature is that you are always repaying yourself instead of another party. The rate of interest in 401(k) loans is highly competitive. These rates are often found to be lower than various forms of debt, including credit cards or personal loans. Furthermore, the interest you pay on is tax-deferred. This means that the taxes are not due until the 401(k) plan is given to you after retirement. 401(k) loans usually do not have an application or processing fee that can add to your debt.

Expecting returns from your savings or checking account is outdated, and these options are less lucrative to the masses today because of lower rates of returns. Instead, people are opting for investments in stock markets. If you are new to investments, here are some concepts to know for effective investment for beginners: Understanding investment for beginners An investment is a calculated risk that you take while assuming that your wealth will increase. While the basic hope remains that you get good returns on your principal amount, you may suffer losses in some cases. Some tools of investment comprise of stocks, bonds, and funds. You can even go for a more lucrative investment like purchasing a vintage car, farmland, paintings, and such other things. The latter is a value-based game of investment for beginners, where the proprietor needs to have an eye for the rising value of such products. The former list, on the other hand, is a conventional definition of investment. The workings of the stock market Mostly, guides for investment miss out on educating beginners on the working of the stock market. While it may seem simple, it is very intricate, and the best way to simplify it is to realize that it is simply an exchange place for buyers and sellers.

Taking out a mortgage can be an exhilarating experience a first-time homebuyer. While it is exciting to be finally getting approval for the home of your dreams, understanding all the accompanying terms and conditions can seem daunting at first. Moreover, the process from the initial application to closing can be long and confusing. Therefore, here are some answers to frequently asked questions on mortgages to help the first-time homeowner: How much would the down payment be on an average? This varies depending on the source of the mortgage. A conventional mortgage loan requires a down payment of around 3%, an FHA requires around 3.5%, and VA mortgages require no down payment. Do note that if the down payment made by you is less than 20% of the property value, you will have to pay private mortgage insurance. Should I opt for a fixed or an adjustable rate? A fixed rate mortgage makes sense if the standard mortgage rates are low. The fixed rate is good for those seeking long-term finance as it offers the stability of steady payments of the loan. On the other hand, an adjustable rate works well for those who are looking at short-term financing plans. An adjustable mortgage allows the borrower to benefit from the usually low initial rates of interest and may even offer lower rates of interest if they drop with market fluctuations.

Most people perceive their retirement to be an exciting time wherein they can sit back and relax. The transition into the golden years of life after spending several decades working hard can be exhilarating. You will have much more time to do the things you always wanted to. Yet, the question looms as to how to best pay for expenses that are bound to arise during this phase of life. There are many financial mistakes that people make early on in life that can put their old age in jeopardy. These mistakes can have serious complications such as a huge loss of savings that can even force a retiree to return to work. In a report published by the Federal Reserve Board, around one-third of the retired population of America has had to return back to work due to insufficient funds. They have either taken up a full-time or part-time job to generate more income. Keeping this in mind, it is essential for people to know of financial mistakes that they must avoid pre- and post-retirement. Not having a tax strategy Different taxes apply to different retirement accounts. Thus, it is very important that any retiree knows how to strategically withdraw and maintain retirement accounts.