0 What Happens When Your Bank Closes?

A question that have crossed the minds of people who have a savings account, credit card, or checking account at any bank is, what will happen to their account in case the bank closes? As your bank works to grow the money you invested over time, there still comes a risk, although a relatively minimal one. Banks can sometimes make a bad decision and lose money. In the event that your bank would have to close, you will also lose money you have invested. Thanks to a law passed by the United States government, you may still recover money you have lost in cases of such an unforeseen event.

The Role of FDIC

It was reported that back in 1930s during the Great Depression, a large number of people tried to withdraw all their money from bank accounts—events that was called “bank runs.” To better protect consumers, then US President Franklin D. Roosevelt signed the Banking Acts of 1933, which gave birth to the Federal Deposit Insurance Corporation (FDIC). The FDIC provides deposit insurance to protect individual accounts against bank failure. 

Depositing funds at an FDIC-insured bank secures investments and provides insurance in case the bank goes under. The best thing about it is that the investor can benefit from the insurance policy even if they don’t spend anything on premiums. The banks are the ones that pay premiums on behalf of their depositors. The premiums paid by the banks comprise FDIC’s deposit insurance fund, which is used for paying back losses to depositors. 

So how does the FDIC help when a bank is falling down? First of all, the FDIC will be monitoring the failing bank closely and takes charge of the bank through a conservatorship. Depositors will get a letter in the mail where they will be informed that their bank will be closing soon. The bank will then be turned over to the FDIC, which will try to sell the bank.

If the Bank is Sold

During the takeover, the bank may close down on a Friday and then open again on a Monday after it has been taken over. You may still use your bank ATMs, old checks, and debit cards up to the amount insured, but only for a limited time, usually a few months. 

Meanwhile, direct deposits will be transferred automatically to your account at the new bank. Certificate of deposits (CD) at a failed bank is insured for up to $250,000 by the FDIC. On the other hand, time-deposit CDs will still mature in the same period as agreed upon with the original bank because it’s considered legally binding. If you’re a CD owner, you need to check the mail for alerts. Acquiring bank will tend to decrease the rate. 

For closed banks, a check will be sent typically within a week. If yours is a checking account, you’ll need to order new checks from the new bank. You can also choose to close the account and move to another bank altogether, although you’ll  have to wait longer because the paperwork will take long to process. 

A standard money market account, which is very much like a savings account, will earn interest rate set by the bank and typically has a limit for the amount of transactions for its customers. It’s usually insured by the FDIC for up to $250,000.

The standard money market should not be confused with money market mutual fund, which usually consists of short-term CDs, including government or corporate bonds and treasury bills. Because these funds are investments held by mutual funds and are not bank deposits, they are not insured by the FDIC. If your money market deposit account is insured, expect your money to be inaccessible for several days. Interest rates may also be subject to change with the new owner.

Meanwhile, fiduciary accounts including brokered accounts, escrow accounts, Uniform Transfers to Minors Act, UTMA, accounts, Interest on Lawyer Trust Accounts or IOLTA, are insured for up to $250,000 by the FDIC. Fiduciary accounts are the accounts owned by one party but managed by another.

If the Bank is Not Sold

So what happens if the bank is not sold to any entity, you ask? You’ll get a check in the mail for the loss of up to the insured limit. However, during the time of processing, you’ll have to wait several days before you can get access to your money, or you’ll have limited access. Instructions will also be sent to you regarding  what to do with your safety deposit box.

How Much Will I Get?

If you are a depositor, then you will get an insured rate of up to $100,000 per bank account. This means that if the account is a joint account, you will get half of it. Meanwhile, if you have below $100,000 in the closed-down bank, you will be pleased to know that you’ll most likely be getting all your money back. The insurance covered by FDIC includes savings, money market, checking accounts, and CDs. The downside of it is that stocks, bonds, mutual funds, stocks, or life insurance plans aren’t covered.

If you have more than $100,000 worth of assets in the bank, a good precautionary measure will be to spread the funds across more than one bank. You can also maximize insurance on your funds by utilizing the various types of ownerships. IRAs are usually insured for up to $250,000. If you have bank assets worth more than $250,000, any amount beyond that is not insured.

Meanwhile, those who had no time to insure all of their bank funds may still get refunds from the FDIC, with an average return of 72 cents per dollar. 

What Happens To Your Loan?

In case you’re wondering what to do with your loans (credit card loans, personal loans, etc.) in case a bank closes down, you should definitely continue paying your loans according to your agreement with the bank. Just because a bank was sold to another entity doesn’t mean that you should stop fulfilling your payment obligations. It’s recommended that you continue with the payments and just wait for a loan statement from the new bank. The process of establishing a new entity might take some time.

4 Simple Ways To Get Out Of Debt

When you’ve got a lot of debt, it could feel like there’s no viable way out. The truth is, the world just started to recover from a devastating financial recession a couple of years ago. So if you’re in this position, you’re not alone. Many hard working consumers were laid off from work. Tons of people, struggling to make ends meet used credit cards and took out loans to cover their expenses while they looked for work that was seemingly impossible to find. But now, more and more people are getting back on solid ground, only to be reminded of their debts every single day. Here are 3 ways that you can fight back, and finally dig your way out of debt!

Option #1: Good Budgeting

I’ve worked with a lot of clients on debt relief. One of the first things I noticed in the industry is that most of the problems can be fixed with better budgeting. Although it may take a little gumption at first to get things all set up, when you get a proper budget together, it will be much easier to manage your money, and finally pay off your debts.

One of the best ways to put a budget together is through the use of a spreadsheet. On your spreadsheet, you want to include all sources of income as well as all of your necessary expenses. Your expenses should include everything from rent to food, gas, daycare, and everything in between. Subtract your total expenses from your total income, now you’ve got your extra funds amount. Allocate as much money as you can to making extra payments on your debts while still holding a little back for monthly entertainment purposes.

Option #2: Sell Your Structured Settlement

If you’ve got a structured settlement, you may be in a very good position for paying your debt off. Although receiving small payments every 2 weeks or every month is enjoyable, you’ve got the option to get paid in one big lump sum.

With one big payment, you may be able to pay off your debts, and put money in savings for the future. Although this isn’t a perfect option for everyone, for some, it’s a great way to not only pay off debts, but to get ahead once again!

Option #3: Sign Up For Credit Card Hardship Programs

Because the worldwide financial recession caused so many people to fall into debt, many lenders started opening up hardship departments within their branches. These are departments designed to help you liquidate your balance as quickly as possible without spreading your budget too thin.

Those who qualify for financial hardship programs are generally given one of two options - either a long term financial hardship plan, or a short term financial hardship plan. In long term programs, interest rates are reduced and consumers are placed on a fixed monthly payment amount. This allows them to pay off their balances quickly without adding too much interest if any at all into the mix.

Final Thoughts

If you’re in a position of overwhelming debt, it’s important to realize that you’re not trapped. You’ve got tons of options! As a matter of fact, the 3 mentioned above are just the tip of the iceberg. All it takes is doing a little research and finding an option that’s right for you!

0 4 Hidden Credit Card Perks and Benefits that Consumers Should Know

Credit cards make us paranoid at times. We typically associate negative connotations to these plastic cards: never ending monthly payments, compounding interest, and a lifetime of debt among others. There are also perks and benefits credit cards offer, however, that can make us think the other way around.

Flexible Payments

Not everyday is shopping day, but if you have a credit card, you can practically buy what you can and pay just one-third of the amount owed next month. 

So, if you are buying the iPad Air, which costs around PHP 32,000, you have to pay the exact amount if you want to buy in cash. But if you have a credit card and you want to buy the iPad, you just have to swipe your card. If you buy an iPad air, your purchase will reflect in your next bill and you’re only required to pay at least the minimum amount of 3%: around PHP 1,000. 

Speaking of flexibility, you can take advantage of 0% monthly interest promos that most credit card companies in the Philippines offer. If you take advantage of a three-month 0% interest promo for your iPad Air, you just pay around PHP 11,000 for three months with no interest starting not today, but next month.

If the promo is for 12 months at 0% interest, you will only have to pay around PHP 2,600 per month starting next month. That’s a PHP 30,000 difference, and a lot better than paying in cash, because you can make use of your cash for other stuff or save it for an emergency fund.

Worry-Free Utility Bills Payment

This is one convenient feature of credit cards offered here in the Philippines, since most credit card holders pay utility bills. Paying these bills through your credit card will help you:

·   Avoid the long lines in payment centers

·   Pay ALL your bills through one statement

·   Organize and track your bills

Let’s say you live in the Metro: you have to pay Meralco, plus your Maynilad or Manila Water bill, plus your phone bills, among others. To make things worse, they have different due dates. If you use your credit card, you can set up an auto-pay facility to take care of your bills once they arrive, and then all you have to pay is your credit card statement. Better yet, you can also pay your credit card at home or wherever you are through online banking.

Supplementary Cards

If you have a big family, or you have a loved one who is far away, or if you’re teaching your teenager to manage finances, supplementary cards can be a good tool. Supplementary cards work like sharing your credit limit. If your credit card has a PHP50,000 credit limit, you share it with your supplementary card holders.

You can rely on supplementary cards during emergencies too. Let’s day your daughter – a first time driver – just had her first flat tire; she’s far away and doesn’t know what to do and where to go. If she has her supplementary card, emergency money is not a problem. Whatever she buys through her card will reflect on your bill as you are the primary card holder.

Balance Transfer

Sometimes, unfortunate events happen that make our already tight finances suffer even more. Sometimes it’s unavoidable to have debts and compounding interests on several credit cards that you own. Fortunately, you can consolidate your debt into one card through balance transfer.

Let’s say you have four credit cards from different banks, and you are paying 20% interest monthly. If you take advantage of a balance transfer, you can pick the bank that has the lowest interest and consolidate your debt into that bank’s credit card, and pay only for one interest per month. Contact your banks regarding this option and choose where to transfer all your debts.

These perks and benefits would not be to your advantage if you’re not financially responsible. It always depends on how you use or misuse your credit cards. If you’re an impulsive and reckless buyer, don’t expect to be debt-free!

About the Author:

This article was contributed by Mark Yasay of MoneyMax, Philippines leading comparison website. This portal helps individuals in saving money by comparing credit cards, personal loans, insurance and broadband plans.

0 Lessons from the Recent Recession

The Great Recession has created a big impact not just in America, but in nearly all nations across the globe. It has affected thousands: people lost their jobs, banks suddenly had plenty of money-lending problems, and the value of properties went down.
 

Which was—ironically enough—a piece of good news, especially for those planning to own or buy properties. If you’re one of them, do you know your options? 

Housingloans and credit cards are two of the easiest ways through which people can afford to buy a house or property they have a yen for. 

Real Estate in the Aftermath of the Recession  

For some, the recession has resulted to poor credit due to foreclosures, unemployment, and other related issues. For those who have their own residential properties, losing their jobs isn’t their only problem. Meeting the mortgage payments on their properties has brought more pressure and stress on them. And while some have resorted to selling off their properties during the Great Recession, this is hardly an ideal solution to the problem.

Because of many foreclosed homes, money lending companies now tend to be more cautious in giving financial aid to people who plan to purchase a residential property. 

The Good Side of the Great Recession

The recession taught people the importance of saving money. Between the years 2007 to 2008, the rate of household savings increased to at least two-fifths. Banks have an improved rate of persuasive saving. Even though recession brought decreased ratings in the stock market, devalued the market for residential properties, and increased the number of unemployment, there’s still a something good or positive that came out of it. People felt the urge to save money for their financial stability in the future. They tried to spend less to save more.

Having too many possessions is impractical—if you can’t afford them. So more people learned the value of recycling. Other women tried to spend less cash on their clothes, while some tried to minimise their weekly or monthly food costs. Impulsive buying habits were changed and personal finances were cautiously and carefully budgeted.

There are only a few of the positive things in the aftermath of the great recession. Also, since the value of homes went down, it was buying time for those who had the cash and wherewithal to spend. 

If you’re one of them, here are a few tips for you, especially if you’re looking to own property during the recession:

• Would-be buyers are on the hunt for Foreclosure properties because it’s a great opportunity to buy properties with sharp discounts. So make sure you remember to ask for that discount.

•  Make sure you choose a payment scheme that will sustain your financial standing.

• You need to save money that you can use as down payment.

•  If you want to apply for a house loan, make sure you have a good and clean credit report so you get to be approved immediately by most money lenders.

• Check the location and the condition of the house. Look for good buys rather than investing in a home-wreck.

Know that buying a house is a long-term investment so make sure you’re prepared for anything, six-ways-till-Sunday prepared. If you are, you just might get that home loan approved for that house or property you’ve been eyeing all this time.

2 Grandma’s 8 Effective Tips on Saving Money

Many of us would prefer to listen to our grandparents’ advice rather than our parents or our own. It’s probably because of their experience, or it’s because they’re not annoying like other people (sorry mom and dad). Now, if there’s something I’d never forget about my grandma, it’s her tips on how to save money.

                Let me share my grandma’s money wisdom to you.

1)      Use a Piggy Bank

I remember getting a piggy bank for my birthday, and Christmas, and my next birthday. Honestly, I always thought they were useless. However, she said I should just keep them out in the open, and set them near the door so I could slip spare change or extra bills in my pockets. True enough, it became so easy to drop the coins I had on me, and by the end of each year, I managed to save a good amount that proved to be a decent addition to my savings.

2)      Have a Budget

Whenever she randomly gave me money (it’s probably because she loves me so much), grandma would always ask me how I planned to spend it. What did I want to buy? Would I save it instead? If I said I wanted to buy something, she’d remind me not to spend it all in one go. Instead, she suggested I make a budget to make the most out of my money.

3)      Live a Simple Life

As I mentioned above, my grandmother was never the fancy type. Even though she had money, she knew it was enough to have decent clothes and food to eat each day. She didn’t go on luxurious shopping sprees or spent money for costly house decors. By her example, I learned never to waste money on designer clothes and shoes either.

4)      Save for Retirement

Before retiring, my grandmother was an outstanding employee wherever she worked. She was known for her tireless efforts to produce great results. She was never complacent with her tasks. When I asked her why she was working so hard, she told me she was also saving for her retirement. She didn’t want to rely on pensions or money from her children. She wanted to make sure she had her own means of ensuring she lived comfortably, and that would only be possible if she had enough money saved.

5)      Unplug Electrical Appliances When Not in Use

My grandmother always called us out for leaving our appliances plugged in (except the refrigerator) when we weren’t using them. Sometimes, she unplugged my mobile phone while I left it recharging on the table. Though these make her seem pesky at times, it actually helped cut a few dollars off our electricity bill. Another lesson learned there: small sacrifices actually do help in the long run.

6)      Don’t Use Too Much Gadgets

Speaking of gadgets, my grandmother disliked it when we were too gadget-dependent. She always said it was better to talk to people in person. That it was better to write on paper, to call people instead of texting. And although she loved to do video conference calls with our family members overseas, she told us simplicity was still the best. We grew up without feeling the need to get the latest phones or tablets—and we never felt bereft in any way.  

7)      Walk

Aside from a sterling reputation at work, my grandma was also known for being a regular “walker” outside her home. She would spend her mornings walking back and forth the sidewalk. She would do her inhale-exhale exercises in the fresh morning air while greeting her neighbors. This made her strong and healthy. She told us to do the same. So when I started to work already, I’d walk instead to wherever I needed to be—so long as these places were only a few short distances away. I didn’t think riding taxis or driving cars was ever a necessity, so this habit helped me save money.

8)      Love Your Family

This particular advice, she didn’t really tell me straight. I say this because this is how I saw her live her life. My grandmother gave so much importance to money, but she knew when and how to spend it properly. She didn’t waste it on jewelry or stuff she knew she wouldn’t really use. If there was something she spent huge on, it was on me and on the rest of the family. Every now and then she would buy food to cook for the whole clan. There’s really nothing like a deliciously-prepared home-cooked meal to bring everyone together. It was always about keeping the family tight-knit.  

                It has definitely been easy add to—and grow—my savings because I saw how grandma did it her whole life. I know that when I have my own family, I’d do the same as well. The best way to teach something is to live it, after all. I’m sure that if anyone else follows these tips and makes them their own, more people are surely going to reap the financial, and emotional benefits, in their lives— all thanks to my grandma’s money saving advice.

About The Author:

Mark Yasay is a social media enthusiast and a writer for MoneyMax, the Philippines most comprehensive online platform for comparing financial and telecom products. MoneyMax aims to consistently find the best broadband plans, credit cards, loans, and other services and products that suit your needs.

0 Invest in Stocks: a Must for 2014

The beginning of the year is a perfect time to make solid financial commitments toward gaining financial freedom, such as increasing their savings and paying off credit card debt. In order to achieve these, some people choose to place investments able to yield the best possible returns and profit.
One of the most popular investment options for 2014 is stocks. Although investing in stocks have many risks due to the volatile nature of the market, they still remain a popular investment option. Below are some of the reasons why stocks remain popular for 2014:

1.     Easy to Acquire

It’s easy to acquire stocks. In the past, you’d need to contact a broker or a financial planner to buy stocks. Now, you can purchase stocks simply by going online and doing some research.

2.     High Returns

Although stocks do not guarantee a fixed amount of profit, investing in stocks for a long period of time can yield good returns. As the economy grows, consumer demand increases. In turn, revenues of the companies you invest in also go up.

3.    Easy to Sell

Because investors are buying and selling stocks regularly, this makes stocks not only easy to buy, but easy to sell, as well. In comparison, other forms of assets such as houses, jewelry, or cars can be harder to sell because there are more factors to consider such as the condition of the property you’re selling, and the fact that there are other people selling the same assets, some of them in better condition or at cheaper prices. Stocks, on the other hand, can be sold any time you choose. Also, the rules are rather simple: buy low and sell high.

4.     Gets You Ahead of Inflation

According to CNN Investing Basics, stocks usually have an average annual return of 10%, a rate significantly higher than the average annual inflation rate of 3.2%. This means you can prevent the value of your purchased currency from decreasing because the companies you’re investing in will still yield higher returns than the annual inflation rate. Even if the economy gets bad, people will still continue making purchases, which is why you can still be ahead of inflation when you invest in stocks.

5.     Tax Relief

Purchasing stocks doesn’t entail having to pay taxes on what you earn every year, just like what investors do for bonds or bank accounts. When you purchase a stock, and its value increases, you’re not required to file a return on your earnings. You’ll only be required to file your stock profits when you sell your shares. You can also adjust the taxes you file for stock gains when you lose money in purchasing a stock.

6.    Higher Interest Rates

If you are finance-savvy and like to save, then you’d be pleased to know that money invested in shares will yield you higher interest returns compared to other forms of investment. For instance, fixed-deposit accounts generally yield around 4% compounded interest per year, while investing in a unit trust fund can yield 5%-20% compounded interest.

By comparison, investing in stocks can provide you with 50%-100% compounded interest. For those who want more interest rates in terms of profits, you can try investing in foreign exchange trading. However, remember that higher-earning stocks also come with bigger risks.

7.    Extra Funds

Whether you hope to earn money for a short period of time or aspire to grow your money in the long term, you can have additional funds for better cash flow management through stock investments. Investing in stocks can provide you with a source of income so you wouldn’t have to rely solely on credit cards any more to supplement your regular income.

With all these advantages of investing in stocks, it is easy to see why the number of Filipino stock investors is growing year by year. So for 2014, make it your goal to set aside part of your savings to invest in well-researched stocks and watch your money grow. 

The article is contributed by Michael Vincent from Money Hero, Hong Kong’s up and coming financial comparison website. Users can compare a broad range of financial products like credit cards and insurance plans side by side, thus enabling them to make better financial decisions when looking for financial products.

1 Top 5 Best Insurance Companies

When setting financial goals, we often include building a healthy savings fund and starting a lifefree of debt. The more ambitious among us would look for ways to invest and grow their money. For those who are more cautious and would like a safety net in case things do not go as planned, getting insured is a definite must before they can consider themselves financially stable.

Insurance protects you from unexpected expenses and emergencies, but not everyone is comfortable with the idea of applying for one. Some of them even think insurance agents are merely out to get them for a commission.

But not all insurance providers are there to take advantage of you or your money. There are actually some good and reliable insurance companies out there. It is just a matter of finding a provider that could meet your specific needs.

MSN has recently released a list of the best insurance companies based on customer and claims satisfaction, value for money, along with recommendations and renewal rates. The insurance providers that have won the favor of loyal customers so far are as follows:

1. USAA
USAA, which caters exclusively to military men and their families, is an auto and home insurance provider with mainly positive reviews. In the survey conducted by MSN, customers reported a smooth claims process, the availability of various plans and discounts, and good policies with no sudden rate hikes. The company also offers affordable home insurance packages. 

2. Erie Insurance Group

Erie Insurance Group provides attractive auto insurance rates locked in within a year even if you make a claim within the said period. The provider has won the loyalty of long-time customers for reasons such as rates do not increase after your first accident, and deductibles with your plan can be reduced if you register no accidents or moving violations. Their car insurance package even covers pets injured in a car crash

3. Amica Mutual

One of the oldest auto insurance providers in the US, Amica Mutual is backed by a history of delivering outstanding car insurance policies to its customers. Being a mutual insurance company, Amica is owned by policy holders. It offers low auto insurance rates and impressive customer service. It is, in fact, one of the few large insurance companies that consistently get high rankings for customer satisfaction. Aside from auto insurance, Amica Mutual also specializes in homeowners, marine, and personal liability policies. 

4. American General
American General offers comprehensive life insurance packages to provide plan holders with income replacement, mortgage payoffs, or education funds. The insurance provider offers very low premiums to small business owners and large families, with different insurance terms available. Customers reported how their complaints have been addressed promptly and adequately, thus increasing American General’s customer satisfaction scores.

5. Kaiser Permanente
     Kaiser Permanente scored the highest for top health insurance providers. It registered high scores in claims satisfaction and customer renewal score. The company offers a selection of individual and family health insurance plans in ten states. Pricing is relatively higher over other health insurance plans but plans are mostly for the long term.

0 Why businesses get ripped off on currency and what they can do

Businesses trading internationally are unnecessarily losing out on thousands of pounds, dollars & yen when making and receiving international payments.

According to a recent article in the FT, a third of respondents to a survey reported gains or foreign exchange losses exceeding $1m.

Today, we’ve invited Daniel Abrahams, co-founder of My CurrencyTransfer, an OPP award winning foreign exchange comparison website to help better understand how to score a fair and transparent deal on currency.

Always opting for bank rates

A large proportion of SME’s are unaware that there are alternative methods of making international payments. Banks apply hefty markups away from the real rate of exchange, and charge fixed fees per transaction of up to £40 per payment. In the past couple years, we’ve seen a raft of innovation in the international payment space. Using a reputable, FCA regulated non-bank foreign exchange provider can help you save up to 5% on your international payments. On a £100,000 transaction, that’s a saving of up to £5000. Not to be sniffed at!

Honeymoon Rates

SME’s making international money transfers should be aware of a term known in the industry as ‘honeymoon rates.’ Less than transparent currency brokers and banks will offer clients a great rate on day one, only to widen and widen the ‘‘markup’’ away from the real exchange rate over time. It’s important to benchmark every single transaction against the interbankexchange rate to avoid the pitfalls of poor spreads. The difference between the ‘interbank rate’ and the ‘sell rate’ represents the true cost of your currency conversion.

Not managing currency risk

According to EuroTreasurer, one out of every three survey participants reported having increased difficulty even finding a bank that would hedge exchange risks. However, working with a foreign exchange broker lets you take advantage of a number of ways to manage a business’ foreign exchange risk. Often, you can trade ‘at the right rate, but the wrong time.’ Through currency contracts such as: forward contracts, limit orders & stop losses, an FD can help mitigate against the risk of adverse currency fluctuations.

Each customer is allocated a dedicated account manager who can take time to understand the business’ foreign exchange exposure. It’s so important to have a tailored & proactive service that is ‘on your side.’

No competitive pricing

It’s advisable to have a live trading account with more than one FCA regulated non-bank foreign exchange provider. Most don’t and this can often lead to becoming too comfortable with one particular foreign exchange company (think honeymoon rates). On each and every trade, cross compare the exchange rates offered between two reputable suppliers. After all, more competitive quotes equal a better saving! 

The myth of 0% commission

Finally, never be duped into believing that 0% commission means fee free international payments. It’s simply an elaborate marketing gimmick which in no way, shape or form equates to zero cost currency exchange. Whether you transact with a bank or foreign exchange broker, a good or bad currency deal will always be guided by the competitiveness of the exchange rate alone.

Good luck and with a little careful planning, your business will be well on the way to scoring a fantastic deal on international payments.

0 Tips For Hiring Online

The most difficult thing about working with people online is establishing trust and credibility, especially in a team. Without a common physical office to constrict activities, or a room to facilitate regular and emergency meetings, or even just a common space to observe each other’s performance, an employer has to result to different things just to be able to gauge an applicant’s credibility and competence. If you are looking to form your own team from a list of online applicants, here are some tips for hiring that you should consider.

·         Do a thorough background check. Browsing a Facebook account, no matter how extensive, does not constitute a comprehensive background check. With the number of people who want to earn money from home, it is quite easy to attract some people who only want to know how to make money fast. If you want to check out an applicant’s abilities or credibility, search for as many references as you can that might have some deeper insight on him/her. If you can gain access to documents (printed or online) such as bank records, former employer’s evaluation, blog posts, or even just simple testimonies from friends and former co-workers, it would already be a huge help in painting a bigger picture of the applicant. There are also online resources/sites that keep track of people’s job histories, especially if the applicants have already been with them for quite a while.

·         Test for competency. Once you’ve verified the applicant’s credibility, you can test his/her competency through a series of online examinations. Obviously, the test you’re planning to administer should be related to the skills needed for the position. For example, if you are looking for someone to fill the position of writer, then you can have your applicant tested for writing abilities. If you want a transcriber, then you can employ something akin to a speed-typing test. Whatever the case is, do not take the applicant’s word without seeing proof.

·         Require a probationary period. Sometimes, either through sheer luck or by cheating, an applicant undeservingly passes the test. How do you save yourself from trouble then? Fortunately, this is what the probationary period is for. Not only does it provide a certain period of time for the applicants to learn the required skills, but it also tests the applicant’s consistency, adaptability and knack for improvements. Obviously, it would be more beneficial to just lay off those team members who cannot deliver. After all, a team is only as good as its weakest member, so why keep a weak link in place?

Once you’ve mustered all the tricks, hiring online should be a breeze. 

Author's Bio: Jeric is a freelance writer that is interested in sharing information, tips and ideas online through blogging. He has been working online for about 3 years and exploring the many ways on how to earn money online.

1 Managing your finance successfully

Successful finance management is a valuable skill that would be handy for everyone. To be successful you need to know how to operate your finance effectively and how to make the most of your money. Here are a few easy tips how to become more efficient in managing your personal finances.
 1. Use single email address for payments. If your accounts are associated with various email addresses it would take more time and effort to track your balance. Check the balance regularly to know exactly what your financial situation is.
 2. Plan your expenses. Take a piece of paper and write down all your expenditures: flat rent, utilities, electricity bills, petrol, cinema, clothes, food, loans – all things you pay money for. See where you spend the most, check which items you could cut off or reduce expenses on. 
 3. Consider payday loans in emergency. If you are facing some unexpected expense and have no money to cover it on time, think about taking out internet loans online as this way you can avoid delays with your payments and even save some money. But bear in mind that you will be able to succeed only if you use this service wisely. 
 4. Calculate exactly how much you earn. Write down all the sources of income and how much money they bring. Compare the 2 numbers: your expenditure and your earnings. How much money is left after you pay all your bills? Know this number exactly because this is the sum you can invest to generate income. 
 5. Control your expenses. If you have done 2 previous tasks you should now know how much money you can spend every month. Make sure you don’t exceed the limit or otherwise you will get into debt. 
 6. Start building financial backup in case of emergency. Life is unpredictable: sudden illness, robbery, car accident, broken laptop, veterinary clinic. You never know what difficulties you may face and what extra expenses you will have to go into. So it is better have some emergency fund. Calculate your earnings and start saving 2, 3, 5, 10% from your income every month. 
 7. Subscribe to a retirement program. Check the retirement programs the banks in your city offer. Chose the one that won’t be a great burden on you. Most often such programs deduct a certain sum of money from your account every month or quarter. This is done automatically so you don’t need to bother and remember to make the payments on time. 
 8. Invest your money. If you are successful enough to have some spare money every month consider investing it into something reliable and safe. It may be a real estate deal, a project of your friend or your own brilliant idea that you can patent and generate income from. Interesting opportunities some along now and then so keep your eye on the market not to miss your deal. Alternatively you could think of a fixed deposit to earn a little from an interest rate. 
 9. Apply for health insurance. Hospital services are rather costly. If you feel something is wrong better visit a hospital as soon as possible. Having an insurance will allow you get diagnosed and get the treatment immediately. Eventually it will cost less than curing a neglected illness. 

These are simple ways of managing your finance. You don’t really need a degree in finance just keep your expenses under control, check how much you earn and try to save a little every month.