Moving On A Tight Budget

When you intend to move, but you’re on a tight budget, you need to take all the necessary steps to save as much as possible. Moving can be an expensive process, but there are ways to go about in on a budget. To cut down on your moving costs, you should remember that as you relocate, you have a perfect chance to leave behind what you don’t need and haven’t been using for a long time. Such things can either be given to charitable organizations or be sold. It won’t make sense for you to pay for the relocation of stuff you don’t intend to use, and it can save you quite a bit of cash.

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What is the Cheapest Type of Life Insurance?

If you’re shopping for life insurance, you have several factors to keep in mind. There are many different types of life insurance to choose from. They each have their own benefits and drawbacks.

A common concern with life insurance is the cost. This deters people from getting life insurance and can make them put it off. Fortunately, there is one type of life insurance that is a cheaper option.

In general, the cheapest type of life insurance is term life insurance. Term life insurance is insurance that lasts for a specific number of years. When you get term life insurance, you will select a specific term you would like the policy for. The terms can vary by company, but you can typically find terms that last 10, 20, or 30 years.

Why is Term Life Insurance the Cheapest?

Term life insurance has no cash value, while other more expensive options do offer cash value. This helps to keep the cost down on term life insurance. Cash value options cost more, making term life insurance a much more affordable option.

Jason of CFAinsure explained it like this:

“Because term life insurance only lasts for a set number of years, it expires prior to the insured’s death. With other types of life insurance, the policy is meant to last for the duration of the insured’s life. This is why it costs more.”

Who Should Get Term Life Insurance?

For most people, term life insurance is used while their children are still young. This provides protection in case anything was to happen to the insured while their children are growing up. The term life insurance would then act as income replacement for your family.

One way to do this is by getting life insurance for the length of time you will have living in your home. After that time, term life insurance is no longer necessary because your kids will no longer be financially dependent on you.

How Much Does Term Life Insurance Cost?

The actual cost of term life insurance varies by person. There is no one-size-fits-all insurance policy. You will need to find the term life insurance option that works best for you and your needs.

Term life insurance costs are also dependent on age, gender, health status, and other factors. For this reason, you should not expect to get the same policy for the same price as a friend or co-worker.

For many people, term life insurance only costs a few dollars each month. Some people only have to pay about $10 per month. As mentioned, this can vary greatly. It’s important to get quotes based on your age, gender, health status, and other factors. This will ensure you know what you can expect to pay.

Conclusion

If you’re looking for an affordable type of life insurance, term life insurance is the best choice. It’s the most cost-effective life insurance but still offers the protection you need. Some people end up paying just $10 per month for term life insurance. It’s important to do your research and see if term life insurance is a good option for you.

8 Interesting Ways You Can Make Money from Cryptocurrency That Isn’t Trading

Cryptocurrency isn’t something you can just receive for free. It takes a lot of time, effort, patience, and computer processing power to achieve. And usually, earning it requires something else in exchange. Some methods require very minimal effort while others require a certain level of knowledge to attain large amounts. But either way, it’s not going to fall into your lap without you taking any steps.

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The Ways of Transaction: Coins, Bills, Cards and Cryptocurrency Exchange

In this modern era, money is one of the most important commodities. You might think that it is not healthy to obsess about money (and you are most probably right) but you cannot deny that having a lot of money helps a lot. With money, you can have opportunities that you never had before. Buying your wants and needs is not a problem anymore when you have a ton of cash in your bank account or something. You can also travel around and see the places you have never been before. It may not be the best thing for your morality, but material-wise you are already okay if you are a rich person.

However, using real world money was not always easy. In the ancient times, barter was the most common way of transaction with other people. The literal exchange of goods and services did not involve any currency at all; it involved other goods and services. It was built around trust and knowing who you are trading with and what you are trading for. There are a lot of rules surrounding it as well, especially with the corresponding exchange as the items and services are not always similar to each other. It worked for them, but it may not work now as currency is already involved.

Precious metals like gold and silver were the first ones that were made into round circular shapes that we know now as coins. It still worked the same way it does now, however the cost of it changed according to its weight. The heavier the coin is, the larger its value in the market. It worked for quite some time as a lot of kingdoms used it. From the Ancient Greeks to Chinese, it was the only currency that they had for a very long time. It wasn’t enough however, as the times changed yet again and people started using paper bills. Read more about the history of money here: https://www.investopedia.com/articles/07/roots_of_money.asp

One of the advantages of using paper bills is it doesn’t increase its weight while its value also increases. You can carry it around without having a lot in your pocket. Imagine carrying a few hundred pieces of pennies instead of one singular bill with the same value: which one would you choose? If you choose the former, then you might be a masochist or you just really need to have the change at hand. Nevertheless, the paper bill has been in use for many decades now, but the cards have arrived in the modern world.

Credit or debit cards are even more lightweight than your paper bills. You can also store even more money inside without increasing its weight. Theoretically, it can also be limitless in it money storing capacity. You can also just connect it with your smartphone for faster and easier transactions. With a few taps, you can acquire your wants and needs without even taking out your wallet. It is so convenient that many people in first world countries are transitioning into this kind of set-up. Click here to read more about this.

However, there is also a far more convenient way for that.

Cryptocurrency is considered as one of the fast-emerging currencies in the modern world. Created to fill the idea of a common currency for the world, cryptocurrency is now becoming one of the most profitable ways to make money. You can even buy them in the world market. There are many kinds of cryptocurrencies that you can use like Bitcoin and Ethereum. Transacting with cryptocurrencies is also safe for users as you need to have a private key to access and continue with transactions. You can even “mine” cryptocurrency, like looking for it across its platform. Also, there are sites dedicated to sharing and exchange of cryptocurrency like rubix.io. You can find other people who are using cryptocurrencies and connect with them like any social media site. It is such a convenient way of trading that many users believe that it is better than the cards and paper bills.

No matter what kind of currency you are using, just make sure that you got it in honest means. As long as you worked hard for it, there is nothing wrong with spending it for yourself and your family. Use it responsibly, and it can take you to places you have never even imagined before.

Why I am no longer using my bank for international transfers

I’m almost embarrassed to write this. As a five-year resident of Europe, you’d think I would have realized the raw deal I was getting long ago. However, I had always had good relations with my bank. They had never charged me unusual fees or usurious interest rates, and always offered friendly customer service.

Then, five years ago, I accepted a position with a tech startup in Amsterdam. For a while, I made maximum withdrawals to ease the pain of foreign ATM fees. I probably should have started asking questions at this point, but I shrugged it off. It was part of the adventure of moving overseas, so I just accepted it.

Not long after, though, I made a mistake that cost me thousands of dollars. Don’t fall victim to the same scam – below, I’ll explain why you should never use banks to move cash overseas.

The (hidden) perils of moving your life savings abroad

The time had come to move my savings to the Netherlands. As a Canadian, the CRA considers you a tax resident if you maintain a bank account at home while abroad. Up until then, I had no reason to distrust my bank. Accordingly, I (naively) set up a wire from my account at the Bank of Montreal to my new one at ING.

I remember my final balance at BMO like it was yesterday: $105,520. Amassed through a decade of RRSP matching with my former employer, it was a source of pride. After waiting impatiently for a few days, I got the call I was waiting for – ING had received the money.

Upon viewing my savings account balance, though, my face dropped a little. Someone less educated would have been over-the-moon to see €67,412 starting back at them. However, while waiting for the wire to clear, I had looked up the interbank rate.

According to xe.com three days earlier, CAD/EUR was hovering around 1.5. According to the rough math I did in my head, I should have had over €70,000. I fired up Calculator on my desktop and surfed back over to xe.com. Sure enough, the exact rate was 1.50463. Had I gotten this rate, I would have €70,130.

I was looking at more than a €2,500 gap between what BMO gave me(1.5653) and the mid-market rate. That equated to more than 3,700 CAD – or almost two month’s wages from my first job out of school. My face turned beet red, as I realized my bank had screwed me to the tune of 4%!

On that day, I finally understood why Canadian banks are among the most profitable institutions on the planet. They charge exorbitant rates and fees and hope their customers accept them like meek sheep. From that day forward, I decided to opt out from the system to the fullest extent possible.

Searching for a better way to send money

For most in my shoes, this story would have just been a cautionary tale about trusting the banks. But I was determined to find a better way to move money internationally. After all, I send cash as gifts to my nephews and nieces for birthdays and at Christmas. And my parents aren’t getting any younger – soon, I will have to move an inheritance to Holland.

My initial effort was rather depressing. Like the international finance noob that I was, I looked at Western Union first. With a strong name brand, WU is the dominant non-bank player in the money transfer industry.

One look at their fees and rates made my heart hit the floor. They were worse than the banks. Let’s say I want to send my 19-year-old nephew 200 EUR for “books.” Right off the bat, they charge a 15 EUR transfer fee – that’s 7.5% of the send total! And let’s talk about their exchange rate – as stated above, the CAD/EUR rate is 1.50463. On Western Union’s online money transfer platform, they offer 1.38800 – that’s a spread of 7.3%!

My first thought – “Well, at least the banks haven’t adopted WU’s business model.” However, my second thought was, “the financial industry has us over a barrel, there’s no point in researching further.” I got up from my computer, made a sandwich, then I went to bed.

Scores of alternatives exist to the banks

After bearing witness to Western Union’s M.O. (i.e., rob, pillage, and steal from customers that have no other options), I gave up. However, several weeks later, I was reflecting on how internet businesses have disrupted many industries. Thanks to the efficiencies the web provides, many online companies operate at a fraction of the cost of their brick-and-mortar counterparts.

“It’s 20 fricking 19!”, I thought. There’s no way the fintech industry hasn’t given rise to startups dedicated to making money transfer cheaper. This idea filled me with a renewed energy, so I jumped on my computer and began my search anew.

Soon, I found a site called MoneyTransferComparison.com. On it, you could compare money transfers rates from companies I had never heard of before. From Transferwise to Currencies Direct, these firms offered low/no fees, and exchange rates within a hair’s width of interbank.

I was so excited that I decided to initiate a money transfer, right then and there. My 21-year-old niece was about to set off on an Asian backpacking adventure – what a perfect excuse! I set up a 100 EUR transfer, attached a note (“buy your travel friends some beer on me”), and sent it off.

Had I used Western Union (shudder), she would have gotten 138.80 CAD. Through Transferwise, she got 150 CAD – in Thailand, 11 CAD will buy quite a few Singhas!

How do I move money these days?

After my eureka moment, I had become obsessed with getting the best money transfer deal possible. Every time I wanted to send money, I’d spend hours bouncing back and forth between sites.

I no longer do this, and you shouldn’t either. Time is valuable – once it slips through your fingers, it’s gone forever. Instead of wasting your evening comparison shopping, find a handful of companies you trust and bookmark them. When the time comes to send a transfer, submit a quote with each firm. Whoever comes back with the best price, wins.

This approach is best because, these days, competition among money transfer firms is cutthroat. One day, Currencies Direct may have the best EUR/CAD price. The next, it could be TorFX. By submitting quotes, their brokers do the work for you, giving you the best rate possible.

Stop rewarding the egregious behaviour of the banksters

It’s time we admitted it to ourselves: Toronto Dominion is not your friend. CIBC is not your friend. The Bank of Montreal is not your freaking friend. Their mission is to maximize shareholder value – offering you a sweetheart deal on foreign exchange goes against that objective.

Fortunately, the internet revolution has given us better money transfer options. It’s time we made full use of them.