Sorting Out Your Finances For Dummies E-Book

Melanie Bien

• Herausgeber: John Wiley & Sons
• Kategorie: Ratgeber
• Sprache: Englisch

Seitenzahl: 460

Veröffentlichungsjahr: 2011

Beschreibung

Being good with money is about getting into good habits and understanding the choices you make. Fully updated to cover the latest financial trends and developments, this book gives you the confidence to plot where your money goes, to know your limits, and to choose the right financial products for a wealthier future. It will help you learn how to analyse your financial situation, isolate problem areas, properly structure your debt, investments and retirement plans, and adopt good money habits whatever your age or financial situation. Once you've sorted out your finances you'll get much more pleasure from the money you spend and the money you save. Discover how to: * Make your salary go further * Set financial goals and reach them * Get out of debt * Start an investment portfolio * Prepare for the unexpected

Leseprobe

Sorting Out Your Finances For Dummies, 2nd Edition

by Melanie Bien

Sorting Out Your Finances For Dummies, 2nd Edition®

Published by John Wiley & Sons, Ltd The Atrium Southern Gate Chichester West Sussex PO19 8SQ England

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Copyright © 2008 John Wiley & Sons, Ltd, Chichester, West Sussex, England

Published by John Wiley & Sons, Ltd, Chichester, West Sussex

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British Library Cataloguing in Publication Data: A catalogue record for this book is available from the British Library

ISBN: 978-0-470-69515-9

Printed and bound in Great Britain by Bell & Bain Ltd, Glasgow

10 9 8 7 6 5 4 3 2 1

About the Author

Melanie Bien is director (head of media relations) at Savills Private Finance, the independent mortgage broker. She was personal finance editor of the Independent on Sunday for five years and writes freelance property features for national newspapers, magazines, and websites. She has written several books and pamphlets to accompany television programmes on property makeovers and design, and on buying, renovating, and selling property.

Her other books include Buying a Home On a Budget For Dummies, Buying and Selling Property For Dummies,and Renting Out Your Property For Dummies. She lives in North London with her husband.

Dedication

To my husband, brother and parents, for all your support, enthusiasm, and endless encouragement.

Author’s Acknowledgements

I would like to thank Jason Dunne at John Wiley & Sons for having the faith in me to write yet another book for the company! I also acknowledge a depth of gratitude to Rachael Chilvers, my editor, and Kathleen Dobie, my development editor, for their help, direction, feedback, and constructive criticism during the process. Also, many thanks to Sam Spickernell for dealing with my queries patiently and quickly, and to everyone who works behind the scenes at Wiley for their efforts in making this book possible.

Thanks also to my family for their untiring support and encouragement.

Publisher’s Acknowledgements

We’re proud of this book; please send us your comments through our Dummies online registration form located at www.dummies.com/register/.

Some of the people who helped bring this book to market include the following:

Acquisitions, Editorial, and Media Development

Project Editor: Steve Edwards

(Previous Edition: Rachael Chilvers and Kathleen Dobie)

Content Editor: Nicole Burnett

Commissioning Editor: Wejdan Ismail

Proofreader: Helen Heyes

Publisher: Jason Dunne

Executive Editor: Samantha Spickernell

Executive Project Editor: Daniel Mersey

Cover Photos: ©Thinkstock/Corbis

Cartoons: Ed McLachlan

Composition Services

Project Coordinator: Erin Smith

Layout and Graphics: Reuben W. Davis, Alissa D. Ellet, Melissa K. Jester, Ronald Terry, Christine Williams

Proofreader: Caitie Kelly

Indexer: Estalita Slivoskey

Contents

Title

Introduction

About This Book

Conventions Used in This Book

What You’re Not to Read

Foolish Assumptions

How This Book Is Organised

Icons Used in This Book

Where to Go from Here

Part I : Organising Your Finances

Chapter 1: Exploring the Basics

Looking at the Benefits of Being on Top of Your Finances

Pondering Money Matters

Clearing Your Debt – and Starting to Save

Establishing Your Financial Goals

Taking Advantage of the Tax Breaks on Saving and Investing

Using a Financial Adviser

Chapter 2: Taking Stock of Your Financial Goals and Seeking Advice

Drawing Up a Budget

Establishing Your Goals

Seeking Advice to Help Realise Your Financial Goals

Considering Advisers

Getting to Grips with Qualifications

Paying for Advice

Going It Alone

Chapter 3: Choosing the Best Current Account for You

Explaining How Current Accounts Work

Finding the Best Current Account

Switching Your Current Account

Chapter 4: Guarding Against the Unknown: Insurance

Arranging Cover

Handling Health and Protection

Covering Your Home and Belongings

Part II : Dealing with Debt

Chapter 5: Seeing Red: Tackling Your Overdraft

Understanding How Overdrafts Work

Deciding Whether an Overdraft Really Is the Answer

Choosing a Current Account for Its Overdraft

Switching Current Accounts When You Have an Overdraft

Reducing Your Overdraft

Chapter 6: Flexing the Plastic: Choosing a Credit Card

Understanding How Credit Cards Work

Finding Low Rates

Enjoying the Perks of Clearing Your Balance Every Month

Avoiding Certain Credit Card Activities

Protecting Your Purchases

Considering Your Credit Rating

Chapter 7: Navigating Personal Loans

Figuring Out When a Loan Makes Perfect Sense

Deciding When a Loan Is Not a Good Idea

Understanding How Loans Work

Finding the Best Personal Loan

Avoiding Payment Protection Insurance

Taking Action If You Are Struggling with Repayments

Chapter 8: Avoiding Credit Nasties and Getting Out of Debt

Handling Store Cards Smartly

Avoiding Debt Consolidation Firms

Steering Clear of Loan Sharks

Escaping the Debt Trap

Part III : Building Up Savings and Investments

Chapter 9: Saving for a Rainy Day

Dealing with an Emergency

Looking at Savings Strengths

Deciding How Much You Need to Save

Finding the Best Savings Account

Shopping Around for the Best Deal

Safeguarding Your Savings

Chapter 10: Making the Most of Tax-Free Savings and Investments

Opting for an Individual Savings Account

Choosing National Savings Certificates

Exploring Venture Capital Trusts

Chapter 11: Building Up an Investment Portfolio

Planning Your Strategy

Understanding Charges

Evaluating Your Risk Level

Balancing Your Investment Portfolio

Getting to Grips with Bonds

Building Up a Share Portfolio

Chapter 12: Finding Safety in Numbers with Collective Funds

Pooling Your Investments

Jumping into Different Pools

Making Sense of With-Profits Investment Bonds

Buying Corporate Bond Funds

Choosing Exchange Traded Funds

Joining a Pool

Chapter 13: DIY Investing: Opting for Shares

Investing Basics

Selecting Your Shares

Choosing a Broker

Buying and Selling Shares

Holding Your Shares

Looking Forward to Returns

Keeping Track of Your Shares

Chapter 14: Safe as Houses: Choosing a Mortgage

Working Out How Much You Can Afford to Borrow

Calculating How Much Cash You Need Beyond the Price

Eenie, Meenie, Miney, Mo: Choosing the Right Mortgage

Understanding Rates

Finding the Best Mortgage

Avoiding Unnecessary Costs

Part IV : Taking Care of the Future

Chapter 15: Planning for Retirement and Beyond

Making Some Vital Decisions about Retirement

Looking at the Big Pension Picture

Supplementing the State Scheme with a Personal Pension

Mixing and Matching – Alternatives to Pensions

Where There’s a Will, the Family Know Where They Stand

Protecting Your Estate from an Unnecessary Tax Bill

Chapter 16: Getting to Grips with Company Pensions

Being Smart by Joining the Company Scheme

Exploring the Types of Workplace Pensions

Looking at Limits on Your Pension

Contracting In or Out of the State Second Pension

Changing Jobs – And Your Pension

Chapter 17: Examining Personal Pensions and Stakeholder Schemes

Understanding How Personal Pensions Work

Figuring Out How Stakeholder Schemes Enter the Equation

Choosing the Best Scheme for You

Making Contributions

Receiving Your Pension

Taking the Bull by the Horns: Self-Invested Personal Pensions

Chapter 18: Coping in Retirement

Deciding When to Retire

Taking the Tax-Free Lump Sum

Explaining Annuities

Retiring Gradually

Withdrawing Income

Dealing with a Trivial Pension

Getting Money from Your Home

Part V : The Part of Tens

Chapter 19: Ten Tips to Get Out of Debt and Save Cash

Taking Scissors to Your Plastic

Going Interest-Free

Having a Night In

Steering Clear of Buying a Round

Wearing Last Season’s Threads

Taking on Part-Time Work

Steering Clear of Lattes and Muffins

Buying Supermarket Own Brands

Walking to Work

Making Your Own Cards and Pressies

Chapter 20: Coping with Ten Events Life May Throw at You

Leaving Home

Paying University Costs

Joining the Rat Race

Getting Hitched

Starting a Family

Giving Up Your Day Job to Raise the Kids

Getting Divorced

Going Self-Employed

Being Made Redundant

Taking Early Retirement

Chapter 21: Ten Golden Rules for Sorting Out Your Finances

Live within Your Means

Start Saving from a Young Age

Become a Rate Tart

Avoid Store Cards at All Costs

Get on the Property Ladder

Put Your Pay Rise towards Your Pension

Take Advice before Taking the Plunge

File Your Tax Return on Time

Provide for Your Dependants

Insure Yourself from Risk

Appendix: Resources

Professional and Trade Organisations

Government Agencies

Other Useful Websites

Credit Reference Agencies

: Further Reading

Introduction

W elcome to the second edition of Sorting Out Your Finances For Dummies. If you’re struggling to clear your debts and build up your savings and investments for the future, you need some sensible tips to help you realise your goals. This book provides all the help you need to enable you to get your debt under control – and start saving for the future.

About This Book

Although these pages are overflowing with useful advice and information, I present it in a light, easy-to-access format. This book helps you decide where your priorities lie when it comes to your finances. I cover debt and how to clear it, and give tips on finding the best savings account so that when you’ve got some cash you can ensure it works as hard as possible for you. I offer some hints on picking the best investments for building up a nest egg or for a specific outlay, such as buying a car or paying for a holiday. Just as important, this book helps you maintain your sense of humour – as well as your sanity – as you deal with financial challenges.

Conventions Used in This Book