COMSUMER PROTECTION
CORPORATION
BY VISAL DEVARAKONDA
STEPS TO IMPROVE YOUR
FINANCIAL WELLBEING
(NOT IN ANY SPECIFIC ORDER)
WHO WE ARE?
We are a young company driven to help young
people take better care of their money. In this day
and age when consumer rules the land, keeping track
of your finances can be harder than ever. With that
being said, nothing is impossible, and so, with a little
help from our expertise, we will ensure that you too,
can be financially secure.
WHAT WE DO?
InWe teach our students the best tips to
keep on track with their finances by
educating them on the importance of living
below their means and being responsible in
how they spend their money.
CALL OR TEXT US FOR MORE INFO
470-306-5690
WHY SHOULD YOU
FOLLOW US?
Our Steps are proven to help you achieve
your financial goals. Whether it be to simply
be financially secure, or to life a lavish
lifestyle, our tips are proven to help you
achieve your goals.
COMSUMER PROTECTION
CORPORATION
STEP 1:
BUDGETING
WHAT IS BUDGETING
AND WHY IS IT
IMPORTANT?
Budgeting is the process of planning out all of the
expenses and income for a certain period of time. For
most people, this period would be monthly, as most people
are paid twice a month instead of one lump sum a year.
Regardless of the budgeting period, there are certain
aspects that must remain the same.
First, a budget must cover all expenses and incomes, with
no stones left unturned. A budget allows you to plan out
how much money you will receive and how much you will
spend, and so if the figures on the budget are not accurate,
the budget could prove less valuable than it can be.
A budget should be organized in such a way that all of the
expenses are clearly laid out so that there is no confusion
as to where or how money was spent. While there are
many different ways to budget, the best ways are the
following:
Writing down expenses in a notebook, or typing them on a
google doc, using a spreadsheet, or using the many
budgeting apps that are available online or on your
smartphone.
PIECE OF
ADVICE #1
While keeping a budget is so important, it is
understandable why many people in America choose
not to do it. They fear a budget may restrict them from
doing what they want to do. And you may feel the
same, but one piece of advice is to still keep trying.
When we are young, we often look for short-term
things to make us happy, and it is only once we are
older that we look back and have regrets. Having a
financially secure life is one of the most rewarding
things you can have as an adult, and without a budget,
achieving it will be nxt to impossible.
PIECE OF
ADVICE #2
While you may be willing to budget, you may find
that being disciplined, especially after never
being so before, is especially difficult. If this is
the case for you, one piece of advice would try to
join up with other people. This could mean a
spouse or even close friends. Just like how
finding a gym partner is a great way to stay
motivated, having the same for budgeting is a
great way to stay motivated and keep working
toward your goals.
COMSUMER PROTECTION
CORPORATION
STEP 1:
BUDGETING
WHAT IS BUDGETING
AND WHY IS IT
IMPORTANT?
Budgeting is the process of planning out all of the
expenses and income for a certain period of time. For
most people, this period would be monthly, as most people
are paid twice a month instead of one lump sum a year.
Regardless of the budgeting period, there are certain
aspects that must remain the same.
First, a budget must cover all expenses and incomes, with
no stones left unturned. A budget allows you to plan out
how much money you will receive and how much you will
spend, and so if the figures on the budget are not accurate,
the budget could prove less valuable than it can be.
A budget should be organized in such a way that all of the
expenses are clearly laid out so that there is no confusion
as to where or how money was spent. While there are
many different ways to budget, the best ways are the
following:
Writing down expenses in a notebook, or typing them on a
google doc, using a spreadsheet, or using the many
budgeting apps that are available online or on your
smartphone.
PIECE OF
ADVICE #1
While keeping a budget is so important, it is
understandable why many people in America choose
not to do it. They fear a budget may restrict them from
doing what they want to do. And you may feel the
same, but one piece of advice is to still keep trying.
When we are young, we often look for short-term
things to make us happy, and it is only once we are
older that we look back and have regrets. Having a
financially secure life is one of the most rewarding
things you can have as an adult, and without a budget,
achieving it will be nxt to impossible.
PIECE OF
ADVICE #2
While you may be willing to budget, you may find
that being disciplined, especially after never
being so before, is especially difficult. If this is
the case for you, one piece of advice would try to
join up with other people. This could mean a
spouse or even close friends. Just like how
finding a gym partner is a great way to stay
motivated, having the same for budgeting is a
great way to stay motivated and keep working
toward your goals.
COMSUMER PROTECTION
CORPORATION
STEP 2:
PAYING FOR COLLEGE
HOW DO I PAY FOR
COLLEGE?
In the modern era, it seems more crucial than ever to have a college
degree. As more and more jobs move away from on-the-job training, a
college degree seems like the only way to get a job that pays a high wage
while also not requiring one to get their hands dirty. With that being said,
college is an expensive affair, and many may not have the funds necessary
to attend college and get an education. However, as you will learn, there
are many different ways to pay for college, and not all of them require
taking money from your own account (at least not at first).
There are 4 mains ways to pay for college, which we will discuss here:
Saving: This is the most self-explanatory of the bunch. There are many
ways to save for college, however, there is one method that most students
use when trying to pay for college. Working a summer job is always a good
idea when still in college, as it allows you to make a dent in your college
and if you're lucky, pay it in full. The only real downside to saving is the fact
that, as we stated prior, many decent-paying jobs require a college degree,
which you do not have, and as a result, you may not be able to get a job
that pays high enough to pay for your tuition. This is where the other
methods come into place
Grants: If you are part of a certain group, whether that be a minority group
or one of low financial standing, you may be eligible to receive some
grants to go to college. These grants will not be needed to be paid back
unless you don't graduate, and as a result, are a great way to pay for
college if you can receive one
Scholarships: If you have some sort of merit, whether that be high grades,
high standardized test scores, or many other merit-based qualifications,
you may be eligible for scholarships. Scholarships can range from a few
hundred dollars to a full-ride scholarship that pays for all of your years as a
student. Attaining scholarships is not easy, but if you receive one, it can
certainly be rewarding.
Loans: The last method to pay for college is to use student loans. Student
loans are a method that many students have used in the past few decades
to pay for college. They include using federally backed loans to pay for
college, and then slowly paying off the debt over the course of your career.
Depending on your circumstances, this may be your only way to attend
college.
PIECE OF
ADVICE #1
Do not underestimate the power of little scholarships.
Often, many people opt to apply for the large full-ride
scholarships and often neglect to look at the other
smaller scholarships that are only a few hundred or
thousand dollars. However, while the full-ride
scholarships are very challenging to attain, the smaller
scholarships are not, and very often these
scholarships can add up to quite a formidable sum of
money, and are more attainable than full-ride
scholarships that have thousands if not millions of
applicants.
PIECE OF
ADVICE #2
Be very careful with how you deal with student
loans. Student loans cannot be removed by
bankruptcy and so if you take a loan, it will stick
with you for the rest of your life unless you
decide to pay it off. Be very careful about what
you study in college, since not all degrees have
the same value in the marketplace and if you
choose the wrong field of study, you might not
be able to pay off your student loans and be
stuck with them forever.
COMSUMER PROTECTION
CORPORATION
STEP 3:
BUYING A HOUSE
WHAT IMPORTANT
CONSIDERATIONS
SHOULD BE MAKE WHEY
BUDY A HOUSE?
Buying a house might be one of the largest if the largest financial
decisions you will ever make, so it makes sense to be cautious about how
the process is done, especially if this is your first time.
For most people, buying a house is not something as simple as buying
groceries, instead, they must take up a loan (also known as a mortgage, to
buy the house).
The loan amount you receive from the bank is dependent on your credit
score, as a result, the higher your credit score, the more likely you are to be
approved for a loan and the larger loan you can take.
However, the bank will not allow you to take a house completely on a loan.
They will instead want you to put in some money of your own to ensure
you are also invested in the property. This is known as a down payment.
The larger the down payment, the less you will have to take up as a loan
and the less you will have to pay off every month.
This is amplified by the fact that every loan will have some interest that is
placed on it, this can be a fixed conventional loan or a variable interest
loan (where the interest rate can change). It is important to consider that
just because the difference between an interest is only by a tenth, because
of the magnitude of the loan you accumulate, one-tenth can add up pretty
quickly.
With that being said, there are ways that a lender can protect himself from
people who do not pay their loans, this is known as Private Mortage
insurance which can protect the lender if the borrower cannot make a
payment.
The bank also has the ability to foreclose a property. This means that if a
person cannot pay his monthly payment for his house, the bank can claim
the property for itself and sell it, often in an auction.
Finally, once all of the processes are complete, you can finally close on
the purchase. This is where you can incur closing costs, which are
basically the costs associated with deed filing and lawyer fees. The
closing costs can depend on the property and location so please make
sure to check with a real estate agent to confirm what the costs are in your
area.
PIECE OF
ADVICE #1
Pay as large of a down payment as you can muster.
This, of course, has limitations, in the sense that you
must not use your emergency fund to pay for a down
payment. However, excluding this, the larger the down
payment, the better it will be for you when you decide
to purchase a home. That is because the smaller the
loan you have, the easier it will be to be approved for a
loan and the less interest you will have to pay on that
loan over time. This can also help you pay off your loan
faster.
PIECE OF
ADVICE #2
Be very careful as you how much house you
decide to purchase. Do not make an emotional
decision on a property. Find a property that you
can afford that fits within your meticulous
budget and does not exceed it. This can help you
down the road should there ever be economic
instability, when you don't have to stress about
making a payment every month the same way
you would if your monthly payment made a very
large portion of your budget.
COMSUMER PROTECTION
CORPORATION
STEP 4:
HEALTH INSURANCE
WHAT IS HEALTH
INSURANCE AND WHY
IS IT IMPORTANT?
Health Insurance is one of the most important insurance for an
American. Without health insurance, you may not be able to pay
off your medical bills, and may devastate your finances. As a
result, it is crucial to pay more medical insurance for yourself and
your family.
Most full-time employees are given health insurance by their
employer, however, there if you are a part-time employee, or don't
like the coverage that your employer is giving you, it may make
sense to purchase insurance for yourself, however, it is important
to note that if you chose to purchase medical insurance
individually, it may cost more that if you were to receive it from
your employer.
It is also important to note that not all insurance policies are the
same. Some insurance policies only cover catastrophic events,
while others may cover monthly check-up expenses.
There are a few terms you will need to know, however:
Copay: A cost-sharing program where the insurance company
pays for part of the medical visit and medication and you as the
individual will pay the remaining portion
Deductible: A amount that an individual pays before the insurer
starts to make payments for a covered loss.
Co-insurance: A form of cost-sharing that requires the insured to
pay a set percentage of expenses after the deductible has been
met
Flexible Spending Account: Allows people to place a certain
portion of their wages tax-free to pay for uncovered medical
expenses.
Cobra: Allows a person to remain under the employer's medical
coverage for a specific amount of time as long as the person
continues to pay.
PIECE OF
ADVICE #1
You want to have as large of a deductible as you can
muster because the higher the deductible, the less you
will need to take for your insurance. This means that
you will not need to use your insurance as much as
you would need to otherwise and therefore have to pay
less premiums should you ever need to use your
insurance
PIECE OF
ADVICE #2
Try to create a Flexible Spending Account as
soon as you can. The reason is if you are in a
position where your medical you are unable to
pay your deductible or co-insurance payments,
having a Flexible Spending Account will be a life
saver (literally and figuratively) and can be used
without paying taxes on your money. This can
make it a very useful piece of security in the case
of an emergency.
COMSUMER PROTECTION
CORPORATION
STEP 5:
PROTECTING YOUR FINANCES
HOW CAN YOU
PROTECT YOUR
FINANCES?
There are many ways that thieves can steal your identity. And
they can do so for many different reasons. The biggest reason,
however, is usually financial. Stealing one's identity allows
criminals to take out loans and credit cards in your name, and
allows them to steal money from you in the process.
Thieves can do this in many different ways. A short list includes
Dumpster Diving, Skimming, Phishing, Shoulder Surfing, Change
of address, stealing, or computer hacking.
Regardless of the method they choose, having your identity stolen
could be devastating to both your and your family's lives.
Thankfully, there are ways to protect against it.
Here is a brief list of measures you can take to reduce your
chance of having identity theft occur.
Monitor your financial accounts closely,
When paying online, make sure the company you're buying
from has a secure payment system.
Don't provide your personal information to people you don't
know
Lock your financial documents and records in a safe place
Leave your Social Security and medical cards at home or in a
secure place.
Use secure networks when online
Monitor your credit report regularly for fraudulent information
As previously stated, these recommendations are not allencompassing, but do provide a good guideline of how to protect
yourself.
PIECE OF
ADVICE #1
Do not get overconfident. While you may follow all of
the recommendations to protect your information, that
doesn't mean you can be lax about it. Criminals are
always changing their methods so that they can steal
from you, so it is important to always be vigilant and
careful no matter where you are, and not let hubris get
the better of you.
PIECE OF
ADVICE #2
If you are ever in a position where you think that
your identity has been compromised, do not
panic. The worst thing you can do in that
situation is make an emotion decision that will
only make your predicament worse. Instead, if
you are put in that position, take a deep breath,
and contact the proper authorities who can help
you and ensure that your identity is recovered.