Common Car Warranty Scams

Many car dealers, especially certified ones with good brands and rapport with customers, could give you a good deal off a car. However, some car dealers could easily scam their way into your pocket through seemingly-harmless warranties that you do not actually need or would not actually cover your vehicle. Here are a few common car warranty scams you should know.

1.    Extended Service

Only the original car manufacturers could issue extended warranties for vehicles. What car dealers are offering you are extended-service contracts, which have different provisions from warranties. So if you receive a notification that your warranty expired but you took an “extended warranty” from your car dealer, assume that it is only extended service.

2.    Misleading Sales Pitches

Your add-ons are usually the target of car dealers in having their scams make their way into your bank account. If you purchase an add-on, some car dealers would say they have separate warranties of their own. This is a good deal, but a bundled package of warranties with your vehicle is somewhat suspicious.

3.    Shoddy Repairs

A totalled car could run for a week with rather shoddy patch ups and some car dealers sell new or used vehicles in this manner with clever paint jobs. Automatically, car dealers will offer you warranties for these types of rip-offed vehicles. If you bought one such vehicle and you have a warranty that covers your vehicle once, you can be in big trouble. Beware of very low or “too good to be true” extended warranty or service rates.

Commodities You Could Invest in This Year

Oil is actually leading the commodities streak this year, but aside from oil, you have other commodities you could purchase in to ensure maximized profit this year. Here are a few things to consider when investing in commodities today.

1.    Aluminium

Forecasters expect increased infrastructure and construction stimulating contracts and policies from many developing countries in Southeast Asia including the gigantic China. This could move the prices for aluminium on the rise. Aluminium had the value of $2,087/ metric ton last year and forecasters project that by 2014, $2,300/metric ton would be its value.

2.    Copper

Again, because of infrastructure and stimulus from China, demands for copper could increase. However, the mineral could become rare and expensive as supplies are forecasted to slow down by the next five years. Copper had $2.61/pound last year and by 2014 it is projected to increase up to 3.05% from 2012 with a price of $3.72/pound

3.    Gold

Gold still has a high value especially today when the European Central Bank allows unlimited bond-purchasing this year. However, lower public demand could limit its growth by 2014. Gold had a value of $1,665/ounce in 2012 and is expected to increase by $1,800/ounce 2014.

4.    Sugar

Any investor looking for stable prices should invest in sugar. A huge supply of sugar coming from Brazil and India lowered the prices of the commodity will prevent major changes for the next two years. Sugar had $0.19/pound on 2012 and in 2014, it could increase to $0.20/pound.

The Difference Between Being a Systematic and Reactive Investor

The way you address your portfolio to accommodate losses and gains during economic changes, stock market drops or gains and other factors affecting the value of your items show if you’re a systematic or reactive investor. 

A systematic investor is one who has a well-balanced set of stocks, bonds, equities and other financial instruments that have a predicted amount of loss and predicted amount of gain that endures the worst economic situations. Systematic investors rarely need to adjust their portfolios and only address issues when they go out of hand.

A reactive investor is one who tries to maximize gains while cutting losses by buying and selling financial instruments at the proper time. For every economic, industrial and financial trouble, reactive investors will try to cut their losses by selling stocks and bonds, getting futures contracts, and buying lower stock which they predict would increase in value over time.

There is no better kind of investor than the two listed above except that each one of them offers advantages and disadvantages. Systematic investors tend to get lower gains but they ensure stability when offered long positions for futures contracts and they meet long term objectives, specifically stocks and bonds that hold 20 years. Reactive investors tend to maximize their income by short term deals and goals.

How I Keep My Credit Cards Free

In my opinion, credit cards are double-edged swords. They can help you raise your credit scores when you are a bit short, or they can drive you a debt hole that could be difficult to climb back out. However, if you use your credit card carefully, you could avoid great debt because of high interest rates and keep your credit card free. Here are a few ways to do such.

1.     Pay in Full

In my opinion, the convenience of a credit card is not because you could afford to have payment plans for expensive items and services instantly. A credit card is a tool to raise your credit limit and avail for yourself better financial deals with lenders in the future. I always make sure to pay my credit card bills in full. Not only do you avoid debt and raise your credit score, you also avoid the stress of having to worry about your bills later.

2.     Pay on Time

The number one reason I ended up with great debt in the past is because I always skipped the deadline payment date for my credit card. My card had a 5% interest rate at that time. Even for just three months of an additional 5% of my previous bill, it could create a hole in the budget. So pay on time and in full always.

3.     Limit your Purchases

If you apply for a credit card, you will need to use it at least once monthly. I use my credit card to purchase groceries or things that my family only needs. I don’t go overboard and purchase things that I want, such as a new television. Limiting your purchases allows you to fulfil tip number 1 and 2. You could do this more effectively if you write your purchases in a notebook to keep an eye on them.

Where to Invest Money in 2013?

If you failed to meet your investment expectations in the first half of 2013, you might just get lucky in the second half. The economy literally fluctuated worldwide and many investors found themselves having great losses. However, don’t fret; here are a few more things that could get you the investment returns you need from your diversified portfolios.

1.     Technology

The mobile device and technology developers today have not stopped developing new ways to entice their customers to place high value on their products and services and more and more start-up software developers continue to join the scene. Sticking with strong competitors in this arena that had proven for years to grow increasingly is a good way to invest your money in the 2^nd half of 2013, especially with the 3^rd Quarter technology expos already nearing.

2.     New Ground

Southeast Asian countries report well on their finance and economy for the 2^nd quarter of 2013. With most Asian countries now increasing their credit ratings, more entrepreneurs continue to lay their businesses into these new grounds. Look for these companies trying to tread on new ground and stick with them because according to experts, it is greatly possible these businesses can grow enormously the following year.

3.     Bank Woes

Coming out of terrible financial scandals, heavy losses and backlogs, investing in banks is not an option this year. With many financial companies involved in insurance and investment frauds, you could only expect lacking confidences from investors. Growth can be minimal with banks or at best, greatly fluctuating.