Tag Archives: insurance

6 of the Worst Ways to Save

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Over the last year or so, we’ve offered up sundry tips on how to consistently and systematically save money.  However, there exists a litany of alternative methods that certain factions of people routinely employ in a hapless effort to hold on to their finances.  Let’s take a gander at some of the worst ways that people have dreamt up to “save,” and why you should avoid them like the bubonic plague.

“Everything’s fine!  Why would I need insurance?”

For the love of all that is holy, please do not adopt this attitude.  Be it home, auto or health, you need insurance.  All the money you could possibly save in your lifetime by not having insurance will still pale in comparison to the amount you would have to pay out of pocket in the event of an accident or unexpected serious condition.  Property and car insurance providers are well aware of this, and as a result must compete for your business by advertising/offering cost cutting incentives (why do you think Geico has over 100 mascots?)  Even the oft maligned ‘government’ is looking out for you in terms of reasonably affordable health insurance (Hello, Obamacare.)  Only when you’re insured, can you rest assured – or at least take a little nap.

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“Let’s buy in bulk! / Find the best deal!”

Shopping at the massive bulk item conglomerates can be quite cost effective when making purchases …if you actually use up all the items you buy.  For instance, “Octomom” could have benefited from a large supply of diapers.  You, on the other hand, may not need 200 Glade Plug-Ins.  While the individual costs of these items will be ostensibly inexpensive when you break them down, if you aren’t using the products up rapidly, then these giant quantities are effectively costing you cash.  Not to mention the annual fees that most of the wholesale clubs enforce.  Along the same lines, if you spend all day long scouring the internet for “super great deals,” you can often be tempted (and lured with clever advertising) to buy “cheap” things that you weren’t going to buy in the first place.  So great, you’ve just saved 40 cents on fabric softener with a discount code provided by a site, but you also just bought 78 dollars worth of Snuggies.

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“I see Golden Arches ahead!”

Truly, a “Dollar Value Menu” sounds like the epitome of savings/deliciousness, but if you trust your, ahem, gut, you know this is not a smart idea.  Yes, eating healthy can be costly, but ultimately it is worth it.  Scarfing down copious amounts of fast food will leave you feeling lethargic and susceptible to illness.  In the long term, doctor’s bills of any sort will always outweigh any savings you may have incurred from eating BK every day.  Repeat, do not have it your way.

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“Minimum payment: check!  I’m good to go!”

We’ve gone over a lot of the pros and cons of credit cards and how to avoid debt, but one thing is for certain; making only the minimum monthly payment on your cards is costing you a great deal.  As your balance surges higher and higher, the interest you owe also accumulates at this exponential rate, leaving you in quite the credit hole.  Try to pay as much as you can per month (unless, of course, you’ve got one of those nifty promotional cards with an APR of 0% for the first year, in which case, go buck wild.)

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“DIY, DIY, DIY!”

While some of you may love working with your hands, either digging around in a garden for weeds or popping Ikea furniture together, there is definitely a time and a place for home projects.  So let’s go over the times/places where you should NOT attempt to repair or construct things yourself (after a perfunctory Google or Bing instruction session that you deem totally adequate): fixing a hole in your steep angled roof, stopping that gas leak in your basement, putting out the fire billowing from your carburetor, building a guest-tree house for your brother-in-law to live in, capturing a rabid raccoon.  There are professionals in all these fields; if you value your safety in the least bit, please use them.  Even tasks that aren’t that dangerous can just be a colossal waste of your time.  You’ve been trying to grab it for the last three hours; you’re never going to reach that turtle your son flushed down the toilet.  Call a dang plumber immediately before you permanently lose your mind and end up in a mental hospital.

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“One day, this sparkly thing will be worth so much!”

Holding on to old diamond jewelry that you never wear anymore (or ever did, in the case of some dusty inherited pieces) is not smart.  Diamonds, and most jewelry items in general, do not appreciate in the same way that other commodities can.  If you have substantial diamonds of any nature (meaning 1 carat and larger), you should consider selling them now.  The money you make from them can then be used for something more profitable, such as a mutual fund or (a more spiritually profitable) trip to Paris or Mumbai.  Check out DiamondLighthouse.com.  We get our clients the best value for their diamond jewelry, every single time.  Find out how!

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-Joe Leone

Dealing With Money after Divorce

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People can sometimes get nasty during divorce, and you might see sides of your former partner’s personality that you never thought you’d have to deal with. A lot of that nastiness arises during discussions of money and the valuables you once owned together, things people sometimes feel possessive about during the divorce negotiations. If you’re going through a divorce, it’s never too early to analyze your investments and create a financial plan and budget for your future. But before you think about the future, you have to think about the past and protect any wealth you have already worked hard to acquire.

Here are a few facets of your financial situation that are important to think about as you move forward with your life:

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Bank Accounts: According to DailyFinance.com, one of the first things you should do once you are divorced is ensure that you have all your own bank accounts, whether that means opening up entirely new accounts or simply ensuring your existing accounts are in your name only. If you don’t have one already, getting a credit card in your own name should be considered paramount, especially to help you adjust in the short term. If you have an outstanding balance on a joint credit card that you are unable to pay off immediately, you can call the credit card company to tell them not to allow any future payments on the card.

Insurance: Married couples often receive insurance discounts, so it makes sense to combine contracts at first, but after divorce, things can get confusing. For your health insurance, under a COBRA plan, you have the right to coverage if you are legally separated, but not if you are divorced. Other insurance policies to examine include homeowner’s or renter’s insurance, car insurance, and life insurance.

Beneficiaries: Evaluate your named beneficiaries to make sure none of them are your ex-spouse or his or her family members. While it might not seem like an immediate concern, changing the beneficiaries on your 401(k) and your IRA is one of those tasks that often gets put on the back-burner during the chaos that is divorce paperwork and the emotional rollercoaster you’ll be riding.

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Safety: Having a safety account is always a good idea; especially during divorce proceedings. This isn’t a hidden, secret Swiss account that you can use when you run away, it’s simply an account you can add to and withdraw from without having to worry whether your former partner is partaking in what belongs to you.

Taxes: First, keep in mind that a 50/50 split in assets might not be 50/50 after taxes are evaluated. Speak with a tax professional to ensure you are getting a fair deal in the settlement, and remember, when tax season rolls around, you and your ex may still be on the same side for that particular challenge. Be sure to keep copies of everything related to major purchases and finances, even if you are not sure whether they still have anything to do with you. That way, when it’s tax time, you’ll have all of your bases covered should an issue arise.

Other Income: In addition to accounts that directly involve money you already have, consider the value of indirect sources of money—whether that involves income or anticipated savings. Some commonly overlooked concerns include insurance that was paid for ahead of time, tax refunds, and even frequent flyer points.

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Bills: On the flipside, you and your former spouse probably have several joint billing accounts that you pay into monthly, quarterly, or yearly. Look through your records for memberships, subscriptions, and even items that often are forgotten, like EZPass or your state’s toll payment provider. Some people prepay for items out of joint accounts before filing for divorce, while others may simply not worry about future liability, leaving the responsibility on you.

Divorce proceedings are often tedious, and losing that part of your life can be painful, but staying in charge of your financial future is a great way to create some security in your life. Protect yourself from unfortunate financial surprises by looking into what might seem like tiny details before they become big problems.

Single and Broke

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Dealing with Post Divorce Financial Stress

Divorce is tough.  There is the natural emotional turmoil that occurs, potentially irksome new living situations, possible missteps in considerations of custody – and then there is the financial hole one can find themselves suddenly in.  Divorce can be devastating to your psyche and bank account; but there are several ways you can successfully combat the latter. Continue reading Single and Broke

What is the best way to sell a diamond ring?

“What’s the smartest way to sell my diamond?” 

When you’re trying to sell your diamonds, security is a major concern. Especially because some of the people trying to buy your diamonds might not be the most trustworthy. Whether you’re selling your diamond to a local secondhand jeweler, online diamond buyer or even through Diamond Lighthouse, it’s important to take every precaution to ensure your diamond is safe, secure and insured every step of the way.

1. Make sure you’re dealing with a reputable company, especially when shipping your diamond to them.

Continue reading What is the best way to sell a diamond ring?