The best way to avoid this awkward conversation?

“Don’t lend money to friends in the first place,” says Peter Post, director of the Emily Post Institute. Of course, that advice isn’t going to help if you’ve already ponied up the cash. Here’s what will.

THE GROUND RULES

Talk in person. Don’t text, email, or call; faceless communications are too easily misread. Instead, invite your friend or family member to chat over coffee or a beer so the atmosphere is more relaxed, says Randy Cohen, author of Be Good: How to Navigate the Ethics of Everything.

Let the relationship guide you. Decide what’s more important: getting your money back or staying on good terms with the borrower. If you care more about the person than the cash and you’re in a position to do so, you may be better off forgiving the debt.

YOUR BEST APPROACH

1. Opening gambit. “I was happy to lend you the money when you needed it. That’s what friends do.”

The strategy: You’re gently reminding your pal that you came through when he or she was in trouble.

“Putting it this way shows you sympathize with your friend,” says Cohen. “Chances are, the person feels bad about not paying you back. An understanding tone decreases your chances of a hostile response.”

2. Be direct. “When do you think you will be able to pay back the $500 I lent you?”

The strategy: Hinting will get you nowhere, says Philip Galanes, author of Social Q’s: How to Survive the Quirks, Quandaries, and Quagmires of Today, because the person may misunderstand (perhaps willfully) what you’re asking.

Like ripping off a Band-Aid, the process will be less painful if you do it quickly and directly.

Start off nicely; getting angry is more likely to result in the borrower pushing back than if you stay calm.

“There’s no sense in starting Defcon 3,” Galanes says.

3. Add urgency, as needed. “We’re going to get hit with some really big tuition bills soon and could really use that money.”

The strategy: Of course, you don’t need to justify asking for your money back, but it can be helpful to cite a pressing reason — as long as it’s true.

“Evoking a specific thing makes repayment seem more like a necessity than simply an option,” says Cohen.

Read more on CNNMoney

Prepare a game plan.

Avoiding panic is easier said than done, but the first critical step you can take to reduce stress is to establish a game plan. Educate yourself now so if possible catastrophe strikes, you know the process. Sit down with your agent and map out what your options will be, how much say you have in choosing a contractor, and the timeframe to expect for completed work, payment, or reimbursement. A large part of the stress that people feel during these intense times is based on the unknowns. Who pays for what? What percentage is covered? Is the claim worth the hassle? Already being knee-deep in water due to a flood is not an optimal time for evaluating your policy. Start now and be ahead of the game.

Determine your policy’s details.

Clear communication between you and your agent can solve any problems or questions in this area. Every policy is different. Familiarize yourself with your specific policy so that you know what damages are covered. If you are concerned about flooding, hail, or possible snow-related damage, make sure you talk to your agent about these concerns so your policy can reflect them accordingly. Research any preventative measures you need to take to guarantee appropriate coverage. While certain coverage might be necessary or recommended for environments or mortgage situations, you and your agent should base your options on your specific needs.

Evaluate whether the claim is justified.

The claims process can be tricky in terms of actual costs accrued. Every policy will have a deductible, but the amount can vary based on what you and your agent decided for your policy. Be practical. If, for example, your deductible is $1000 and the cost to fix the property is $1100, you are looking at a minimal amount due to you in relation to possible premium hikes. However, if you have that exact same $1100 worth of damage but have a lower deductible, then it could be very justifiable to file the claim. Keep in mind that if you have a higher deductible, you are generally paying a lower premium for service, so your savings vs. cost calculator should be reflected in your history with that specific policy.

Be involved in the process.

While elements of the claims process are out of your control, be aware of what you can impact. Review your adjuster’s worksheet carefully and note any damages or needs you think are missing from the adjuster’s evaluation. If services like cleaning or debris removal are not included, let your representative know quickly. Dealing with your adjuster professionally and courteously can make your claims experience go more smoothly. Recognize that adjusters are the experts, but do indicate if you believe aspects have been overlooked in your damage summary. Many insurance companies will issue separate checks based on each category of damage, so ask for a detailed breakdown of settlement amounts per your policy. Create your own file to save any paperwork pertaining to your claim, including contractor bills, adjuster’s worksheets, and copies of personal checks you write along the way.

Find a quality contractor.

As damages are evaluated and repaired, you may that feel you are in a vulnerable situation. You know the extent to which the damages impact your daily life, and you’re aware of the estimated costs to fix those concerns. However, you might not have performed the research necessary to find a quality contractor to perform the work. Of course, this is the essential step, and it pays to know you have a quality contractor.

Many avenues exist to locate a contractor who will restore your home and peace of mind. My own company, Claims Made Easy, was created because I went through the process of trying to find a qualified contractor after a property of mine was damaged. I found it difficult, time-consuming, and, ultimately, unreliable. We work to alleviate the stress homeowners feel during this part of the process by providing homeowners with professional and reliable contractors who work in a number of specialized fields. Ensure that you find a contractor you are comfortable welcoming into your home.

As protective and cautious as we might be with our homes and property, accidents do occur. Taking the essential steps to guarantee you are prepared and knowledgeable about the nature of insurance claims and property repair can alleviate worry and hasten the entire process. A sensible game plan, clear communication about your policy, a trustworthy contractor, and your own diligent research can, once again, make your house a home.

Troy Fairchild is co-founder and CEO of Claims Made Easy, a web-based solution simplifying the insurance claims process for homeowners. Troy is an entrepreneurial thought leader and an expert on the insurance claims process. He welcomes anyone to reach out to him on Twitter or Google+.

Image Credit: Shutterstock.com

Multi-vehicle Discount

If you own several vehicles including motorcycles, recreational vehicles, and boats, then you may be able to get this discount. To qualify for the discount, each vehicle that you’re trying to insure should be under your name. Also, the cars should be driven only by you and your family members. All vehicles should also be covered by the same auto insurance company.

Defensive Driving Discount

You could be eligible for up to a 10% discount if you’ve completed a defensive driving or driver training course. The amount of the discount depends on the car insurance provider, and defensive driving requirements differ with each state. You may contact your state’s Department of Public Safety to see a list of approved defensive driving courses.

Safety Equipment Discount

Equipping your vehicle with safety features is another way to save money on auto insurance. Be sure to list every piece of safety equipment added to your car when talking to your auto insurance agent. Mention both factory-installed and after-market equipment.

Full Payment Auto Insurance Discount

Paying the full amount of your premium insurance instead of monthly installments will earn you a discount. Unlike other discounts, this one is encouraged by every insurance provider.

Good Driver Discount

If you have a clean driving record, then you’ll have a higher chance of getting lower premiums. Depending on the insurance company, good driver incentives range from 2% to 20%.

Homeowners Discount

Purchasing homeowners insurance and auto insurance from the same provider can earn you up to a 20% discount. If you have homeowners insurance from another firm, then ask your car insurance agent if switching to their company will help reduce your insurance rates.

Low Risk Occupation Discount

The type of job you have is one of the risk factors that auto insurance companies consider when determining insurance rates. If you have an occupation with low risks, then you may qualify for this discount.

Long Time Customer Discount

Loyal customers also earn good discounts. Many insurance firms offer up to a 10% discount to long time customers who have stayed with the same company for many years.

Low Mileage Discount

You can get this discount if your car has low annual miles as it means that you’re a low-risk driver, and you have a lesser chance of being in a car accident. Every provider has a different definition of low mileage. Typically, it ranges from 7,500 to 15,000 miles each year.

Senior Discount

Considering that insurance rates are generally based on risk, retired and senior drivers qualify for a good discount. They don’t have to drive to work, which means fewer annual miles and lower accident risks.

Most of the time, auto insurance agents fail to mention some of these discounts either because they’re not aware of the discounts, or they want to steer you away from minimizing your insurance rates. Be sure to speak up and ask questions where necessary. By knowing every discount possible, you can definitely save a considerable amount on your insurance cost.

Dennis Gilroy is a professional insurance representative who blogs in his spare time. He likes making sure people have good information to make the best decisions. AutoInsurance.US offers car insurance, visit the link to compare rates in your area.

Image Credit: Shutterstock.com 

Winter’s chill brings with it higher energy bills for most Americans. With most of our finances already stretched paper-thin, paying a large electric bill is unbearable. Thankfully, there are some tricks the average homeowner can make use of to ensure their home is operating as efficiently as possible in order to make cost of heating their home more manageable.

Here are four nifty tricks that will help you save money and lower your energy costs this winter…

Replace outdated appliances

Old appliances do more than just date a house. They also demand energy in large quantities to do their job. New energy-efficient appliances use far less energy, so replacing appliances will naturally save you money in the long run. In some cases, thanks to the extension of the federal tax credits for energy-efficient appliances, homeowners can save in the short-term as well.

Unfortunately, not all household appliances qualify for federal tax credits. However, homeowner’s can receive various tax breaks when they purchase appliances with an Energy Star logo. In addition, many states also offer financial rewards in the form of tax deductions, rebates or tax credits for those that choose to buy energy-efficient appliances. Great examples of the types of appliances that qualify include instant water heaters, dishwashers, washing and dryers, refrigerators, and ovens.

Kill the vampires

I’m not talking about the vampires that roam the nights of fantasy-romance novels thirsty for blood. I’m talking about the energy vampire that sucks energy from unused appliances that are left plugged in. Since most people are completely unaware of how much energy these devices consume they see no need to unplug these dormant appliances. However, homeowners need to remember that they could get up to a month’s worth of free electricity each year if they eliminated this unwanted drain on their pocket books.

Invest in reusable AC and furnace filters

Neglecting to change the filter in a HVAC system will cause your system to run less efficiently which in turn causes the system to have to work harder to heat or cool a house; and therefore resulting in higher electric bills. Unfortunately, a lot of homeowners neglect this simple task until the system is already overworked. Investing in reusable filters can be a wise decision since replacing filters can become tiresome. At a cost of around $30, a permanent filter will ultimately pay for itself in as little as 15 months.

Check your home for air leaks

Another often overlooked tip to make your home more energy friendly is to check around doors and windows for air leaks. If you seal up cracks, you will prevent the cold air from invading your warm house so that your heater won’t have to work harder to compensate.

Tina Jacobs is a registered nurse, DIY maven who has written and blogged for DIY Mother as well as numerous print and online publications ranging in topics from education to health and from home renovations to interior decorating.

Image Credit: Shutterstock.com

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Couples find they must compromise on where their precious pennies end up. Yet, a mistake that many can make (my wife and I have made it twice!), isn’t even something they have done.

Nope.

You and I are ASSumers!

Determining where every dollar should be spent remains the pain in the neck for every couple. “How much should we save?” “How much should we spend on a Purse?…(there’s no “We” when you’re a guy)” “How much towards Paying down Debt?” Those questions don’t always lead to Problems (the jury’s out on the purse), but there is something that is more unknown and much more dangerous.

Assuming a Future Influx of Income.

Key word there, yep, Assume.

It’s so easy to do it:

• You think you will get more from a special event e.g. wedding, birthday etc.

• Tax refund will probably be $_____, so I’ll buy these expensive Christmas presents…for me! Bwhaha!

• I’ve been so close to getting a job, which means higher pay, I can afford this expensive cruise.

• He told me that he was going to pay me the $300 back for _____, so let’s hit the town on me!

Financial Effects of Being an ASSumer

Assumptions can only lead to bad things in the finance world. Do you pick your investments based off of your own assumptions? Yes…but when your account value drops, you can only blame yourself (no matter how much you want to say the market is a scam). My wife and I, while in search for a place to rent to start our married life with our pup Cooper, we were sure that increased income, a promotion, a new job etc. were in our sights. We deserved it, we said, it’s bound to happen.

So, what did we do?

“Well, after we get that increase in income, we can afford this place. We can get a more expensive place, it’ll work out.”

Down Economy? No problem at all! As it turned out, those income assumptions didn’t come, and we got stuck living in a place that we could afford, but meant we had to cut back on many other things for which we could have used added money.Less in savings, less in flexible income, less to pay down debt.

Control what’s in your reach, do not worry about outside conditions you can’t control. Don’t make financial decisions based on unknown conditions! Trust your decisions that YOU can make based on present circumstances and not hypotheticals. If you get some extra income, great! Have a party. But don’t take on debt contingent on a future extra influx that may or may not come.

Notice, I’m not talking about your income that comes steadily, such as a salary. Yes, hypothetically, you could get fired in 5 minutes and that income stream is cut off. I’m talking about “assumed extra” income on which you justify purchases. It’s a trap that leaves you smacking your head later, it’s not worth it!

If you want the other story (because we didn’t learn from the first one), send me an e-mail at joe@7minentrepreneur.com.

Joe Cassandra is the Founder of the 7Minute Entrepreneur, where he shows how to attack your life with the mindset of an entrepreneur in personal finance, careers, starting your own business, and much more. Follow him here on Twitter.

Yes, there are indeed dangers to avoid when purchasing vehicles. Such dangers may affect the quality of your purchase and make all the difference between a great investment and waste of money. To help you avoid these pitfalls, this guide will be enumerating and discussing each danger to be wary of when buying a car.

Beware Of:

Falling in love with the models. If you are splashing thousands of dollars on a luxury sedan, emotion should not overrule logic when making a final decision. Becoming attracted to the car’s models can blind you from other cars, perhaps cars you should have considered. As an effect of becoming attracted to the model/s, you will likely ignore and skip the car specifications and thereby overlooking its imperfections. Remember, car models are there to lure in car shoppers. They aren’t there to fall in love with car buyers. Get your mindset right and clear.

Skipping test drives. The importance of test driving your prospected car simply cannot be overemphasized. Many cars look good on paper, especially on posters, pamphlets, and brochures. Unfortunately, the actual performance and feel of driving your vehicle cannot be determined in paper. Sadly, several car buyers undermine the value of test drives. They reason out lack of time or too much confidence in their research and existing knowledge regarding the specific model they are about to purchase to miss out on the test driving sessions.

Dealing down from the price tag. Never utilize the price tag as your gauge when dealing with car dealers. A sales rep may provide you with a deal that, for example, is $500 under the sticker price. Upon hearing this, many first-time car buyers will translate this as a great and smart purchase. You should only consider giving into this technique if the vehicle is in large demand and in short supply.

Streamlining solely on monthly premiums. Sales reps prefer to concentrate on a monthly-payment structure when dealing with clients. A common question that will often greet you is “how much can you pay per month?” Do not take the bait. It is the first phase down to a slippery slope of getting overpriced with your monthly premiums. Utilizing the monthly premiums as your main focus, the sales agent may drastically increase the car’s price, trade-in value, and financing conditions combined. This gives the agent too much space to give you a cheaper price on one aspect, but eventually compensating for it on the other areas.

Summary

Overall, you should read up and do your homework before window shopping for cars. The significant savings and quality car specifications you get in the end easily justify your ton load of research and time spent on mastering the art of purchasing a car.

Author’s Bio: Myke Thomas is a freelance writer, professional blogger, and social media enthusiast. Her blog Carloans.net focuses on loan bloggers, car bloggers and finance bloggers. You can follow her on Google+ and Twitter.

Unless Congress takes action before the end of the year, four important credits for families — The Child Tax Credit, Earned Income Tax Credit, Child and Dependent Care Credit and the American Opportunity Credit — will revert back to previous levels.

If this happens, many families will be worse off by hundreds — or even thousands — of dollars, said Roberton Williams, a senior fellow at the Tax Policy Center.

“If you have what it takes to qualify for these particular benefits, you will get hit,” said Williams.

Some families will take a hit on several fronts if they qualify for more than one tax break. A low-income couple with three kids, for example, will lose as much as $1,500 from expiring provisions of the Child Tax Credit. If their income is low enough, they could also see a smaller refund from the Earned Income Tax Credit, and benefits from the Child and Dependent Care Credit could be reduced as well.

The upcoming presidential election has left the fate of these tax breaks uncertain. Democrats and Republicans in Congress continue to butt heads about which tax cuts should be extended, and there’s virtually no chance they will agree on a specific plan before the November election, Williams said.

Read the full article on CNN Money

From cocktail parties to family dinners, debates regarding which lifestyle is optimal are usually never ending with conversations turning into arguments. A neutral approach to this debate would be to state that your lifestyle is almost always a choice and it doesn’t matter which lifestyle you choose as long as you have a solid plan (which addresses all of your goals and needs).

If you had a choice today, which would you choose?

Before you choose, let’s review the definitions of each term. The following is a list of common lifestyle acronyms and terms defined:

DINKS - Double Income No Kids

• Married, common law, or even exclusive relationships living together with no children.
• Has the most potential of generating wealth, because both individuals can share everyday expenses and they do not have the responsibility of raising a family.

There are also subcategories of DINKS including:

DINKWAD - Double Income No Kids With a Dog (Or Domesticated Animal for those who have a cat(s))

• Same as above, except you are both responsible for another living being.

DINKY - Double Income No Kids Yet

• Financial goals may differ from DINKS as the potential of having children may alter their lifestyle to accommodate the start of a new family (i.e. buying a house, change of social scenes, upgrading their vehicle, etc.) in the near future.
• To be a DINKY, individuals do not have to know when they are planning to have their first child, as long as there is a unanimous to have children one day.

SINK - Single Income No Kids

• An individual or a couple (married, common law, etc.) who is generating a single income.
• There are various reasons why individuals are SINK and it may be by choice or force.
• SINK can also be associated with divorcees/ widowers who have not remarried who are raising their children on their own.
• Common for couples and a growing trend for single individuals would be to eventually consider SINKY (Single Income No Kids Yet)

Nuclear Family - Two parents with children living together

• The traditional definition of a Nuclear Family would include children living with their biological mother and father under one roof.
• Postmodern versions of the Nuclear family include same sex relationships where the roles of Father and Mother are assigned raising their children under one roof.
• Also divorced individuals with children remarrying raising their children from previous marriages under one roof.
• The Nuclear Family does not have to have both parents generating an income.

SITCOM - Single Income, Two Children, Outrageous Mortgage

• Unfortunately a commonly used acronym in today’s unstable economy that was once used as a joke.
• The pressure of finding a home in an unaffordable housing market, with the cost of raising a family rising, and job stability a rarity makes for a prime time sitcom full of action and drama.
• SITCOM can be the result of two parents who were once working and now have to finance their lifestyle on one income. Therefore, it might be difficult to afford the bare necessities when it was built around two incomes.

Other

• Includes individuals (single or couple) who are taking care of their parent(s), as well as extended families where numerous family units are living under one roof.
• Another category could include an individual who has a relative that is financially dependent on that individual (i.e. a sibling who is physically or mentally handicap).

Each of these categories has their pros and cons. What may work for one individual might be unbearable for another. What may be your situation today can easily change tomorrow.

Do you have a plan that is flexible that meets the potential demands of a change in lifestyle?

How do you feel about where you are now?

Rafael loves to travel and devotes his time working with individuals making the leap from employee to employer. As CEO of Reis Financial Solutions Inc, he provides management accounting services for small to medium sized businesses, balancing wealth strategies that are favorable for both the business owners and the business itself. Twitter @ReisFinancial

There are variations of DINKs including DINKY (Double Income No Kids Yet) and DINKWAD (Double Income No Kids With a Dog). They are comical terms but they are widely used in the personal finance industry.

If you are a DINK, what do you need to know about your financial situation?

The Advantages of Being a DINK

In a situation where there is consumer debt with either one or both individuals who are DINK, debt elimination can be accomplished in a timely manner. Depending on the dynamics of the relationship, pooling funds together has unlimited benefits; however, it may not be as simple if both individuals keep separate accounts and are fiscally responsible for their own financial endeavors.

The world is your oyster, especially if you are not a DINKY or DINKWAD, the responsibility of being a soon to be parent or having a pet(s) frees up both your time and income. DINKs can effectively minimize their monthly expenses through sharing/ splitting the bills (two people paying rent > one person paying rent). Also, DINKs can create a lifestyle they enjoy, especially if both individuals share similar interests and life goals.

With regards to long-term savings, DINKs can reap the benefits of saving more today to grow their life savings. There may be significant tax breaks in income splitting if there is a substantial difference in income generated between the individuals who are DINKs. Therefore, retirement planning may be easier to achieve in the long run.

A potential plan to consider for DINKs would be a mini-retirement during their 30s and 40s, to further develop their relationship and to achieve their life’s goals while they are still young enough to complete them. Mini-retirements are starting to become more popular, as individuals who are either not interested in retiring completely, or simply doesn’t believe they will ever have enough to retire. Mini-retirements can be as short as 6 months to potentially a decade. Definitely the road less traveled but DINKs have the best opportunity to partake in this activity.

The Disadvantages of Being a DINK

As great as it sounds, DINKs may also be vulnerable to bankruptcy if they do not plan their finances effectively. The greatest misunderstanding of DINKs is that they build their financial plan with both incomes and they do not assess the risk if either individual loses their job. This becomes a major concern when DINKs buy a home based on their total household income that exceeds 50% of their take home pay (a realistic average can be between 60 – 75%). If there is a major difference in income between the individuals in a couple, the risk of losing everything is high. Why? If the individual who generates more income loses their job, the pair may find themselves not being able to pay the mortgage.

To illustrate this transaction, let’s assume there is a couple that earns a total household income of $60,000 per year. One individual has a take home pay of $40,000 ($3,333/ month) and the other earns $20,000 ($1,667/ month). Now, they have a $3,000 per month mortgage (after all fees and property tax allocated), and the higher income earner loses their job. Can they afford to pay the mortgage?

Assuming they get compensated for being laid off at 45% their income, that should equal to approximately $1,500 plus the income from the individual who is still working equals to $1,667. Therefore, they could continue to make the payments (barely), but they have very little to survive on. Realistically a DINK may not require a large place thus reducing the risk of ever financing a home that is equal to 60% of their take home pay. However, it does not mean the risk is gone altogether.

In situations were both individuals who are DINK are financially responsible for their past obligations (paying off pre-relationship consumer debt), this might be a setback in contributing towards their current obligations within the relationship. Furthermore, an individual who constantly saves who is now in a relationship with an individual who constantly spends may discover friction in the relationship. Some individuals who love to spend might feel they have more disposable income because of their significant other; or both individuals might not truly know how much they bring in, as a couple, each month and assume all is well. This misconception may be elevated because of the benefits they reap from sharing their monthly bills where they once paid all on their own.

If you are a DINK, create a budget together and lay out a detailed plan for your joint fixed expenditures. Be aware of the risks, especially planning the possibility if one loses their job in the future; give yourself some flexibility to create an emergency account to cover the rainy days and seasons. It doesn’t have to be a painful task; in fact it can help improve the relationship by sharing ideas of long-term goals. Also, by being honest with one another, a joint budget may assist in discovering any unknown consumer debt; therefore, it would be beneficial to address these issues and create a plan to rid the debt forever.

Knowing your numbers is half the battle; sharing the responsibility and growing together with a unified plan will help win the race.

Rafael loves to travel and devotes his time working with individuals making the leap from employee to employer. As CEO of Reis Financial Solutions Inc, he provides management accounting services for small to medium sized businesses, balancing wealth strategies that are favorable for both the business owners and the business itself. Twitter @ReisFinancial