Save Money On Gasoline And Move America To Energy Independence

Save Money On Gasoline And Move America To Energy Independence

When gasoline prices are high, nobody wants to be fuelish. High gasoline prices act like an additional tax on American families. According to the Department of Energy, passenger cars and light trucks account for almost 42 percent of U.S. oil consumption and are a major source of air pollution. By doing these simple things to reduce gas mileage, you can save money and help America reduce its dependence on foreign sources of oil.

Driving Tips

• Aggressive driving (speeding, rapid acceleration and hard braking) wastes gas. It can lower your gas mileage up to 33 percent at highway speeds and by 5 percent around town.

• Idle as little as possible-idling gets you 0 miles per gallon. The best way to warm up a vehicle is to drive it. You need no more than 30 seconds of idling on winter days before driving away. Anything more simply wastes fuel and increases emissions.

• Combine errands into one trip. Several short trips taken from a cold start can use twice as much fuel as a longer multipurpose trip.

Slow Down

• Avoid high speeds. Each five mph you drive over 60 mph is like paying an additional $0.15 per gallon for gas depending on the current price. Your equivalent gas savings will be from $0.12 to $0.82 per gallon.

• Use air-conditioning only when driving above 30 miles an hour.

Car Maintenance Tips

• Keep tires properly inflated and aligned and improve your gas mileage by around 3.3 percent.

• If the yellow (check engine) light is on, your car might need service.

• Start carpooling and using mass transit, plus arrange to telecommute.

• Get the junk out of the trunk; light cars use less fuel.

A vehicle that gets 30 mpg will cost you $750 less to fuel each year than one that gets 20 mpg (assuming 15,000 miles of driving annually and a fuel cost of $3.00/gallon). Over a period of five years, the 30 mpg vehicle will save you $3,750.

$ Long-Term Savings Tip

• Consider a fuel-efficient vehicle for your next purchase, such as a hybrid or flex-fuel vehicle, which are available in more models every year.

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How To Use Your Equity Smartly

Equity is the value of your home at current market value after deducting the outstanding mortgage on your home, which is what you would have left over in the event that you sold your property at market value and repaid your outstanding mortgage. Home equity is built over time; as equity builds, you create a pool of money which your can utilize it later for many purposes.

In general, it is unadvisable to spend your equity money on things that do not give you ROI (return on investment) such as frivolous vacations. Use your home equity to clear your bad debts is actually a type of spending on your equity money. You could avoid yourself from trapping into debts by carefully plan your budget and spend with what you earn.

A smarter way of using your equity is use it to grow your equity further, spend on things that will bring you ROI. Ways to use your equity smartly include:

Start Your Own Business

You can use your home equity to borrow a low interest loan to generate the capital necessary to start your own business. Just be sure that you have a sound business plan in mind and that you have other safety cushions in place.

During the initial stage of your own business, you could maintain your reliable first income stream (to protect you against any cash problems) while working to bring your own business up to the stage.

Home Improvement

A better home condition will increase your home's resale value. Hence you can dip into your equity to generate funds for home improvement. Your home improvement project will improve your home condition and provide you with a more comfortable living, and you could get a higher resale price whenever you want to sell it. But remember that not all home improvement projects will contribute equally to your homes resale value.

Children Education

Growing equity is a great way to generate fund for your children education needs. You can get loan against your home equity for your children educational needs. Using your equity to invest on your children education will get them a brighter future and at a better position to compete in the challenging job market.

Improve Your FICO Score Debt is unavoidable for many people as long as we have credit cards, mortgage or car, but you could prevent yourself from trapping into bad debts condition by carefully planning your budget and spending with your financial affordability. Instead, your equity can help you to improve your FICO score. By paying off creditors, you can improve your FICO score and potentially qualify for a lower refinancing rate. To make the most out of this process, know your interest rates, for both savings and debts. You can get help from expert such as an accountant to help you with the calculations. With so many rate variables in play, its easy to get confused about how to consolidate, how to pick the right term for your home equity loan, and how much to allocate to savings and how much to allocate to payments.

In Summary

Home equity is the money you have put down against the principal of your house as a savings account, be aware that if you fail to budget effectively and over draw your equity. You could lose your house, wind up in credit trouble, or even have to file for bankruptcy. Hence, use your equity smartly is a great way to pursue your wealth building.

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Bill Consolidation – What You Need To Know.

As easy as it is to get into debt, there are a number of strategies for consolidating your bills and lowering your monthly payments while still paying more to principal and becoming debt-free faster than you thought possible.

If youre ready to eliminate your credit card debt, you need to assess your situation and then look at the best alternative for your financial needs. Do you own a home? If you own, do you have equity in your home to tap? Can you afford more than your monthly payments, or are you struggling to get by? Is your number one goal getting out of debt, or is it to meet your monthly payments?

If you own a home, and have equity available, you can look at a debt consolidation loan, or a related solution a home equity line of credit. In this scenario, you are shifting your credit card debt from unsecured to secured debt, which allows you to lower your monthly payment and also lets you deduct the interest payments from your taxes. You may determine that this debt consolidation loan, or second mortgage, can put you on a much faster track to eliminating your debt. Thats because the interest rate on a second mortgage can be much lower than what youre paying toward credit cards or other high interest debt. Trading higher interest debts such as these for a lower interest payment can save you hundreds each month which you can, in turn, put back toward paying off the debt. Last, but certainly not least, the interest you pay on a second mortgage is tax deductible and that savings too can be put toward your bills.

Or perhaps you already have a second mortgage youve been paying on for a while. Especially if you got your first and second mortgages at the same time, it might be time to consolidate them into one loan. Many second mortgages in the last decade carried adjustable interest rates which have increased causing payments to rise. Consolidating your first mortgage and your adjustable rate second mortgage into one low fixed rate loan can also save you a great deal each month which you can use to make payments to higher interest debts.

Two other advantages you may gain through refinancing are the elimination of personal mortgage insurance and the chance to get cash out at closing. When you took out your original mortgage, did your lender require you to carry personal mortgage insurance due to a high loan to value? If so, refinancing may eliminate that requirement. If you have since built up some equity and your new loan to value is low enough to drop the mortgage insurance, your payment amount will be much lower. You may also find that you can take some cash out of your home at closing without significantly increasing your monthly payments. That cash can go toward you guessed it your higher interest debts.

If you dont own a home, or if you own and have no available equity, you can look at debt relief options including debt settlement and credit counseling. If your monthly payment is your number one concern, its worth a try to call your credit card companies and see if a payment plan at a reduced interest rate can be agreed upon. This will allow you to pay more toward your balances each month and eliminate your credit card debt sooner. While your creditors are under no obligation to change the terms of your agreement, they may very well be willing to do so, especially as it is to their advantage to receive payment, and negotiating a payment plan shows that you are taking the initiative to do just that.

If calling your creditors doesnt work, or if you just want a quick fix, you can contact a debt settlement or credit counseling company. Debt settlement is a service for consumers who want out of debt at the lowest cost, in the shortest time frame, with the lowest payment while avoiding bankruptcy. Credit counseling, on the other hand, is a solution that lowers your interest rates slightly and can get you a lower monthly payment.

The path to becoming debt free is as different as the ways you can get into debt in the first place. The first step toward eliminating your debt is educating yourself with all the options available to you. Once youve identified your needs, you can get started taking the right steps for yourself.

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Effective Ways Of Getting the Best Rates for Your Credit

Effective Ways Of Getting the Best Rates for Your Credit Cards

How many times a day do you receive offers through email or phone for free credit cards with money back schemes, low introductory rates and other perks of credit cards? All banks and financial institutions vie for maximum customers by pouring umpteen perks to tempt you, the customer, in one way or the other.

Remember that a credit card is just a form of borrowing money that has to be paid later. However, it is better to choose a credit card with good rates to avoid ending up paying too much interest to the banks. Make it a point to compare credit card terms and fees before opening a credit or charge card account. Once you find the credit card that has an interest rate that best fits your needs and budget, you can then open an account with that bank.

The annual percentage rate is the measure of the cost of credit the bank offers and is expressed as a yearly rate. Make sure you are aware of this rate before accepting a credit card as some credit card plans have interest rates that change when other economic indicators change. This plan is called a variable rate program. In such a case, when you first get the credit card, you may be offered 5% interest, but in case of index changes, the interest rate may go up to 8%. This means you will later have to pay more interest with the increased interest rate! So confirm if the credit card offers a variable rate program or ‘fixed rate’ program where there is no change in the annual percentage rate, even when economic indicators change.

It is beneficial for you if the credit card you have has a ‘grace period’. This is the period where you can avoid finance charges by paying your balance before due date. This is because with a free period, you will be sent your bill at least 14 days before the due date, thus giving you enough time to pay. Check if the credit card charges annual membership or participation fees or any other costs like transaction fees. It is better to choose the credit card company offering the least ‘extra costs’! This is because the more extra costs there are, the more money you have to pay the company!

When applying for a credit card, it is better to first consider if the credit limit is up to your requirements. Then only is it beneficial for you to apply for the credit card. To get the best rate for your credit card, make sure you understand all terms and condition of the card before accepting it. This is to avoid any future misunderstandings and misconceptions with the credit card company.

Of course, the main point that is taken into consideration to get the best rate for your credit card is your credit score. The better the credit score you have, the better will be the rates the credit card company offers you! This is the reason it is always advisable to have, and maintain a good credit score!

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Direct Deposit Cash Advances For Recipients Of Veterans Benefits

If you are a recipient of benefits issued by the U.S. Veterans Administration, then a direct deposit cash advance might be a helpful way to obtain when you need it quickly. Cash advances are just that they are a loan that advance to you part or all of your next recurring benefits payment, which you use as needed and then repay as agreed when your next benefits payment is directly deposited into your bank account. Direct deposit cash advances for recipients of VA benefits are permitted under VA regulations and they are being approved for Vets every day.

Direct deposit cash advances for recipients of VA benefits make sense. Similar in concept to the payday loan in which employees borrow against their next paycheck, veterans have the option of using future regularly-scheduled benefits as evidence of the ability to repay a similarly structured cash advance loan. With payday loans, applicants repay these short-term advances right out of their next paychecks. Paychecks come every week or two, so borrowers repay payday loans on average 10 to 14 days after they have been approved and funded. Veterans benefits are paid monthly, so repayment of direct deposit cash advances is based on the anticipated arrival of the next monthly payment, or up to 30 days in duration.

Cash advances for veterans can vary in value based on the amount of monthly recurring benefits. These benefits are stable, that is, they are scheduled to be paid by from the government for an indeterminate number of future months as long as the recipient remains alive. Payday loans are often capped at $1,000, but direct deposit cash advances for recipients of VA benefits can be up to the full monthly amount that the Vet receives.

A VA cash advance loan is permissible under Federal law and regulation. Veterans are not allowed to sign over future benefits payments to anyone, even family members. VA officials view these transactions as loans which rely on the Vets ability to repay but do not assign future benefits as collateral, that is to say, assets that may be seized in the event of loan default. Those in the business of providing cash advances for recipients of veterans benefits assume the risk of an unsecured creditor. There is no underwriting process, applicants need not prove their creditworthiness via a positive credit history report, and future benefits may not be seized.

People who apply for and receive these cash advances are Vets who have an immediate need for cash to pay an emergency bill or avoid financial penalties of some sort before their next payment comes in. Equally important to many VA recipients is the confidentiality of the application process, since it may be accomplished entirely online from any personal computer that has an Internet connection. The application process only takes a few minutes and approval takes about an hour. If approved, the advance is deposited the next business day into the same bank checking account into which the recipient receives their regularly monthly benefit payment. The recipient is free to use these funds in whatever manner the deem appropriate.

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Rolling Over Your 401k Plan The Easy Way

So what is a 401k retirement plan? A 401k plan is actually a retirement investments plan that is subsidized by employee or worker payments and often, corresponding involvements from your manager or employer. In addition, the most important draw for these plans is that the payments are taken from your pre-tax wage, and the funds rise tax-free until such time that it is withdrawn or pulled out. Also, the plans are, to some degree, independent and self-sufficient, and the good thing is that they are manageable and convenient.

401k retirement plans are for profit and many kinds of tax-exempt associations and institutes can create these plans for their employees and working staff. Moreover, a 401K plan is a corporation-supported retirement plan for workers. Payments and earnings in a 401K retirement plan are not subject to federal and most state income taxes until the account is withdrawn or pulled out. With a 401K plan, you can save and invest cash from a pre-tax starting point with the employers contributing corresponding funds to add to yours, which makes the plan even more profitable. Most of the time, you will have the option to choose how much you want to contribute, up to the maximum allowed by the government and also the option to choose where your contributions go. You pick your investment vehicle from a directory of funds provided by your retirement plan sponsor or manager.

You can learn when you are entitled and permitted to start contributing in your businesss 401K retirement plan from your assistance manager or director. In addition, once you are qualified to sign up, you will be given an inventory of funds in which you can choose to invest in. You can choose to invest the maximum of $14,000 in 2005 and $15,000 in 2006. There are numerous benefits and gains to 401k plans.
First and foremost, since the contributor is permitted to make a payment to his or her plan with pre-tax cash, it lowers the total tax taken out of every pay check. Subsequently, all company payments and several enlargements in the principal capital are free of tax until withdrawal. Moreover, the compounding result of steady cyclic payments over the phase of 25 or 35 years is remarkable.

In addition, you can decide where to target upcoming payments or place present savings, giving more power over the assets to the contributor. Consequently, if your company matches your contributions, it is like receiving additional funds on top of your earnings. In addition, unlike a regular retirement fund, all payments can be shifted from one business plan to another company plan if you change jobs.

Because the plan is an individual investment for your retirement its sheltered by the retirement fund (ERISA) laws and regulations. This gives you the extra security of keeping your funds from the hands of creditors in case of bankruptcy. This does not apply to household relations court cases that deal with divorce orders or child support orders. Indeed, a 401k retirement plan is a good way to start setting yourself up for an enjoyable retirement.

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How to Quickly Improve Your Credit Score by Adding Positive

How to Quickly Improve Your Credit Score by Adding Positive Payment History to Your Credit Report

Most consumers are aware that negative items on their credit report can be disputed with the three major credit reporting bureaus. Often, this process can lead to a significant improvement in credit score through deletion of the damaging items that were lowering the score.

However, to achieve excellent credit, it’s not enough to just remove negative entries. Why? Because a lack of positive payment history is also an obstacle to having good credit. You need to demonstrate a record of on-time payments in order to raise your credit score.

In this article I will describe two simple techniques for rapidly ADDING good credit entries to your file.

THE CO-SIGNER TECHNIQUE

All that is necessary to add years of excellent credit history is the love and trust of a friend or family member who has good credit.

Credit card companies are always willing to have their best customers add extra cards for family members. By adding your name to one or more of their accounts, they will actually cause a new credit card to be issued in your name. The “catch” is that they will be the co-signer on the account, meaning that they are responsible if you miss payments.

Of course, you never want to risk the credit rating of a friend or family member, so simply have them use their own address on the application for the extra card. That way, the card will be mailed to them, and even though it has your name on it, the card will remain in their possession. They can even cut it up if they want to.

The simple beauty of this approach is that the new card will show up on your credit report, and normally it will show the opening date of the original card (not just the application date for the extra card), as well as the entire credit history of that card! It’s like getting years of good credit added to your file with the stroke of a pen.

THE PASSBOOK SAVINGS LOAN TECHNIQUE

The “Passbook Savings Loan Technique” is a great way to add positive payment history to your credit file. It will also give you an excellent credit reference to use for most types of financial applications. This technique does require some cash at least $500 to $1,000. However, this amount will be held in a savings account as loan collateral, and the total out-of-pocket cost to complete this technique should be well under $50.

Here is the Passbook Savings Loan Technique in detail, so you can see exactly how everything works.

STEP 1 Locate a Small Bank that Meets Your Requirements

I recommend that you work with smaller community banks and not the major chains. The smaller banks are more likely to have the exact type of account that you will need to open, and they are more likely to work with you and be flexible. Savings & Loan institutions and Credit Unions can also be used, provided they meet the requirements. The product you want is called the “Passbook Savings Account,” which is basically just a simple savings account. And the type of loan you will take out is a “Passbook Savings Loan.” This is the easiest type of loan to get because it is totally secured with your own cash. Most banks are only willing to loan you 85% of the amount you have on deposit, so there is always some reserve money in the account.

Your target bank will be suitable for this method if it meets the following three requirements:

A. The bank must have a Passbook Savings Account product with NO MONTHLY FEE on balances of $500 to $1,000.

B. You must be able to borrow up to 85% of your balance on a 12-month loan schedule. This is typically called a Passbook Savings Loan.

C. CRITICAL: The bank MUST report activity on this account to the three major credit bureaus (Experian, TransUnion, and Equifax).

If the bank product does not meet these requirements, then do NOT use that bank. There are thousands of small banking institutions throughout the country, so it should be fairly easy for you to find an appropriate one in your local area.

STEP 2 Open a Passbook Savings Account

Go to the bank you’ve chosen and open a Passbook Savings Account for $1,000 or less—depending on what you have to work with. Take your Passbook home and wait a week or so, because you don’t want it to look like you opened the account only for the purpose of taking the loan.

STEP 3 Obtain a Passbook Savings Loan

Return to the bank and ask to see a loan officer. Look your best, be courteous, and explain that you wish to take out a Passbook Savings Loan for $850 (or 85% of whatever amount you actually deposited).

When you take out your loan, your savings account is frozen. However, every time you make a payment you unfreeze an amount equal to your payment, less a few dollars for interest. Be sure to ask that the loan term be for at least one year, with minimum monthly payments. Do not get a simple one-year loan with no payments. This will not benefit you at all, because you are trying to establish a history of payments.

You will not be turned down for this type of loan no matter what your previous credit history and in most cases it will not even be checked. If you have bad credit, make sure you tell your loan officer before he or she pulls your credit history. Tell the bank representative you are trying to re-establish your credit and that a good credit rating is very important to you now.

STEP 4 Make Your Payments

Assuming an interest rate cost of 6%, your monthly payments on the $850 loan will be $73.16. (Remember, this is a secured loan, so the interest rate should be fairly low.) Since you have “borrowed” $850 in cash, you will use that money to keep the payments going on the loan. Be sure to make your payments well before the due dates. Always pay EARLY in order to be on the safe side in establishing good payment history.

STEP 5 Pay Off the Loan Early

After six months, pay off the loan early. At this point, you will have approximately $980 remaining from your original $1,000 deposit, part of it as cash on-hand, and some remaining in the savings account. You will have paid a whopping $20.31 in interest (assuming the rate was 6% for the secured loan). I’m sure you will agree that $20 is a small price to pay for adding six months’ worth of good payment history to your credit report!

STEP 6 Make Sure the Loan Shows on Your Credit Report

After you have paid off the loan, obtain fresh copies of your credit reports to verify that the loan payment history is showing correctly. Since you selected a bank that reports regularly to the big three credit bureaus, everything should show up correctly. But mistakes do happen. If the loan is not reported correctly, ask the bank directly to fix the omission or ask the credit bureaus in writing to add the credit reference to your report.

The Passbook Savings Loan Technique is a simplified version of the more complicated “Three Bank Technique.” Basically, the concept is to use the secured loan proceeds from one bank to open up another account at a second bank, and then to repeat the process for a third bank. The math is a lot more complicated, but the principle is the same, with the added benefit of having three simultaneous loans adding positive payment history to your credit report. This approach costs a little more in interest expenses, and involves a lot more work, but can really turbo-charge your positive credit history.

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Don’t Trap Into A Credit Card Debt, It Too Costly!

Don’t Trap Into A Credit Card Debt, It Too Costly!

While swiping the credit card is a very effective way to pay without using any type of paper money, it has led many people into a debt trap.

Majority of people simply look at whether or not they can afford their monthly repayment when using at their credit cards. Many of them don't even try to figure out how long it will take to pay them off and how much they are costing them over the long run.

For instance, $2,000 doesn't seem like a huge balance on a credit card. In that case at an 18% interest rate, your payment is only around $40 a month. Sounds pretty affordable at the moment, doesn't it?

Well, if you take a closer look at the number, approximately $30 of your payment goes towards interest. As a matter of fact only $10 is paid towards the $2,000 balance each month.

In case if you are only paying the minimum balance each month, it will take you over 30 years to pay off that $2000. Thirty years, that is too long. In addition you will have paid back $5,000 in interest in that time. Therefore your $2,000 credit card bill will really cost you $7,000 including interest in the long run.

The above payment does not include the extra payment incur in the case when you miss or delay your monthly repayment. In fact, many credit card companies are hoping you will miss your repayment so that they can charge you with extra interest and late payment fee and this would normally extend your payback period for the rest of your life.

There are many credit card debt calculators available on internet and you can use these calculators to calculate how long it will take you to pay off your current credit cards by using the minimum payment method. You will normally be shocked. And it is worth for you to put effort in finding ways to reduce and pay off your credit card debt.

If your credit card debts are reached to an unbearable stage; then, you may need to get service from a debt consolidation company to consolidate all your credit card debts. They are widely expert in dealing with creditors and help you to negotiate with your creditors for a better repayment plan. Follow the plan to pay off your credit card debts.

Credit cards have successfully minimized the use of paper money and become one of the most convenient ways to make payments for a shopping spree or while traveling. Though, if not used with restraint they may soon lead to a huge mountain of debt which leads you to a tizzy of financial woes. In simple terms credit cards are a really costly form of credit. If you must have one, paying off the balance in full each month so that you will not trap into a credit card debt.

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Best Mortgage Interest Rate

The term mortgage in everyday lingo, is used to mean ‘mortgage loan’.The word mortgage has now become the generic term for a loan secured by real property. A mortgage is similar to that of a secured loan. The amount of money lent is slowly repaid in monthly amounts for the length of the mortgage term.

Getting a mortgage is therefore, a huge task for any homeowner. These loans can range from the tens of thousands to the hundreds of thousands of dollars, and impose many different terms and conditions. Finding the best mortgage interest rate available is therefore quite an uphill task, which can eventually save one thousand of dollars over a period of time. The mortgage-lending industry is however, not free from its own share of pitfalls. As the market is inundated with so many different mortgaging options one may quite easily end up choosing the wrong one.

The unsuspecting consumer may be lured to believe that a ‘balloon mortgage’ offers the best mortgage interest rate available. While it is true that in the beginning of this mortgage, monthly payments are quite low, homeowners often find difficulty at the end of the mortgage when they are forced to make a large balloon payment. Balloon mortgages do however, offer some of the best mortgage rates available for real-estate buyers who are looking to turn over the property quickly. Mortgage brokers are usually middlemen between the customer and a lender .The broker needs to look through the market to find out the best mortgage interest rate available.

Types of Mortgage loan: There are two main types of mortgage loans, fixed rate and variable rate interest. With a fixed-rate mortgage loan, the homeowner pays the same amount of interest every month during the lifetime of their loan. With a variable rate mortgage, the homeowner will end up paying different interest rates month-to-month solely depending upon market conditions. Banks and lending companies may use different market indicators to determine your interest rate.

While selecting the best mortgage interest rate one also needs to know that the true drivers of mortgage rates are the investors in the secondary market. A loan when its funded, the mortgage lender that funds the loan which may be a bank, a credit union, or other type of financial institution has the option of keeping that loan on its portfolio or selling it on the secondary market.

When selecting the best mortgage interest rate one needs to see whether it offers you the best return possible. That level of return is to a great extent determined by the current and anticipated condition of the economy. Determining the best loan that requires one to pay the smallest monthly payment possible is equally important as getting the best mortgage interest rate.

Fully equipped technologies are now available which simplify the lending process and ensure the current mortgaging rate is the best for his client. Only by exploring the wide-range of mortgaging options one can decide which one suits his/her purpose. It takes only a little bit of internet surfing, a few phone calls or may be a couple of visits to the local branch to find out and grab the best mortgage interest rate.

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How checking works

Help yourself avoid overdraft fees by understanding checking.

While there is a lot of attention put on people who get into financial trouble based on the amount of money that they charge to their credit cards, that is not the only problem that people commonly have. For instance, checking accounts can cause trouble as well, especially if you do not know how checking works. Therefore, before you start using your checking account frequently, you should find out exactly how your checking account works.

Your checking account is just another bank account, though it is usually not the same or attached to your savings account. Many people find it worthwhile to have both a savings account and a checking account. The reason for this is that you get interest on your savings in the savings account – while in a checking account, you have more freedom with when and how you withdraw your money.

When you write a check, it is true that the money will not be taken out of your account immediately. However, trying to beat the system and writing checks before you have money deposited into your account is a good way to get into trouble with bounced checks. This is why it is important to keep a detailed checkbook, so that you will know exactly how much money is in your checking account at all times.

One thing that you should keep in mind, as well, is that in most cases, debit or check cards will withdraw the money from your account immediately. Therefore, you should make sure that you count these transactions in your check book just like you would any other transaction.

Another tip that you should think about is that it is usually a good idea to keep some extra money in your checking account. If you have a $200 buffer, then you’ll be able to take care of business if something unexpected should come up. For instance, if there is an emergency and you need to spend money at first, then the extra money in your account will come in handy. This is also useful just in case you are waiting for a deposit into your account and it is late.

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