Setting Financial Goals - Part 2Written by Tim Gorman
In my earlier article “Setting Financial Goals – Part 1” I identified 4 simple steps to setting up achievable financial goals. I mentioned that your financial goals should be broken down into smaller more manageable goals and then written down to help you visualize them. This article expands upon that information. Writing your goals down has an additional effect besides allowing you to properly focus in on their success. In some cases you will discover that some of your goals are unfortunately so broad focused that they are unobtainable. However, don’t despair, as you will also be able to identify smaller more tightly focused and thus achievable goals very quickly and easily. When writing down your goals don’t be afraid to dream about riches or retiring early in life just be realistic in your expectations. Goals are more easily obtainable when they are broken down into separate steps or categories based on time frames. When you place a time frame on your goals you are programming your mind to subconsciously motivate itself to succeed in fulfilling your goals. There are 3 time frames that are generally recommended for goal setting. They are short-term goals (within 1 year), intermediate goals (3-5 years) and long term goals (5 years or longer). A short-term goal generally takes one year or less to achieve, based on date task is needed, total estimated cost, and required savings. An intermediate-term goal is type of goal that can't be accomplished overnight but doesn’t require many years to accomplish. Examples might include buying a car, getting an education or paying off your debts like credit cards. Normally an intermediate-goal is anywhere from 1-3 years. Finally a long-term goal is a goal that requires an extensive time commitment (5 years or longer) in order to get accomplished or fulfilled. Examples of long-term goals might include college education for a child, retirement plan or purchasing a home. Whatever case, these goals generally require longer commitments and often more money in end.
| | Be Prepared With Your Home Equity Loan Checklist?Written by Tim Gorman
A home equity loan can be an excellent way to obtain money in order to pay off high interest bills or consolidate your current debt into one monthly payment. A home equity line of credit is a form of revolving credit in which your home serves as collateral. Because home is likely to be a consumer's largest asset, many homeowners use their credit lines only for major items such as education, home improvements, or medical bills and not for day-to-day expenses. Additional benefits include a nice tax advantage and possibility of an overall lower monthly payment. However before you decide that a home equity loan is right for you make sure you do your homework. Not all online lenders of home equity loans are same which means there are ample opportunities to save a few more of your hard earned dollars.The biggest obstacle to overcome is deciding on appropriate online loan lender. Make wrong choice here and it could come back to haunt you in form of higher payments. I have compiled a small list of items to check for when searching for best online loan lender. One item to be on look out for is annual percentage rate or (APR) as it’s commonly known. This is cost of credit on a yearly basis expressed as a percentage. This cost is based on interest rate alone and will not take into effect other fees and charges such as closing costs. Most home equity loans or lines of credit revolve around variable interest rates. In many cases lenders entice consumers with an offer to temporarily discount interest rate for home equity lines. This rate is unusually low and may last for only an introductory period, such as 6 months. Typical information that a loan officer will ask you to provide include a checklist for "Full Document" loan approvals, 1 month of pay stubs from your employer, previous 2 years worth of W2 forms, a mortgage coupon or copy of your monthly mortgage statement, your homeowners insurance policy information, mortgage note on your current mortgage, your drivers license and social security card. Having these items handy will help speed up loan approval process.
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