Do You Need Disaster Insurance? What Type Should You Get?

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Once again, a natural disaster has brought the attention of many to the possible need for disaster insurance. Hurricane Irene might not have been as fierce as many expected, but there will still probably be plenty of insurance claims from floods and other damage.  Whenever we hear of a hurricane, an earthquake, tornadoes or some other disaster, it often prompts a double-check of the homeowners policy to see if you would be covered in a similar disaster were to befall you.  Do you need disaster insurance?  See the different types available and if you need it.

Types of Disaster Coverage

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Homeowners Insurance Coverage: Are You Truly Covered?

One of the biggest purchases you make is your home. It is an expensive item to own, and its protection is quite important if you want to maintain financial freedom.  After all, if something happens to your home, it can be quite expensive to fix.  Insurance is purchased to help you afford unexpected problems, and this includes homeowners insurance.  However, it is important to realize that not every situation is always covered by homeowners insurance.

Before you consider that your entire home, and everything in it is covered, it is important to double check what is actually covered by your policy.  You may need to purchase additional insurance coverage if your homeowners policy is lacking.  Here are some of the more common items not covered by some homeowners insurance policies:
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Investing: Why Boring is Good

In many ways, we are conditioned to believe that anything boring is undesirable. However, in some cases, “boring” can be a good thing.  I like to think that investing is one of those things that can be better when it’s boring, rather than exciting.  I consider myself a rather boring investor, focusing mainly on index funds and dividend aristocrats.  Here’s why when it comes to investing, why boring is good: Continue Reading

Innocent Spouse Tax Relief Changes – New Rules

When you file a joint tax return, you are responsible, along with your spouse, for the information in the return.  If it turns out that your spouse under-reported his or her income, or claimed deductions or credits without being entitled to them, you might be liable for the resulting taxes, penalties and interest — just as your spouse is.

There are some instances in which you might find tax relief, however.  The IRS, with a new rules regarding innocent spouse tax relief, is making it a little easier to get free of your spouse’s tax debt.  If you want “equitable relief” there is no longer a two-year limit for applying.  And, if you have been turned down because of being outside this limit, you can reapply under the new rule.  But, in order to take advantage of this rule, you have to be an “innocent spouse.”Continue Reading

Going to College? 5 Smart Money Moves for College Freshmen

College! For many, leaving home for the first time to attend university is an exciting time, full of promise. As you get ready for school, or as you prepare your child to start a new chapter of his or her life, it is important to remember some of the basics.

Here are 5 smart money moves for college freshmen:

1. Get a Job

It doesn’t need to be a full-time job.  It doesn’t even need to be off-campus.  Many colleges hold hiring fairs one or two days before school starts so that students can see what’s available on campus.  I worked part-time in the college cafeteria for two years, before getting a job as a resident advisor.  A part-time job on campus is usually manageable, and many students benefit from working at least a little bit.  The extra income comes in handy.Continue Reading

Hedging Against Inflation

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One of the realities of our economy is inflation. Inflation, which is a rise in prices (or a reduction in purchasing power) has a very real effect on your finances.  As inflation increases, your ability to get more for your money decreases.  This means that it takes more money to buy the same amount of product or service as you could buy a few years ago.  Unfortunately, there is almost no way to stop inflation.  Hedging against inflation, is something you can work on so that your wealth grows at pace with inflation — or beats it.Continue Reading

How to Create a Budget for Variable Income

With people increasingly using technology to make money from home, it is becoming more common for many of us to live on a variable income. The problem for many, though, is how to create a budget for variable income?  Whether you have a stable base of income, with some variable elements, or whether your entire income is variable, you need to have some sort of plan for your money.

Estimates: Break Down Your Monthly Income and Expenses

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