How Much Life Insurance Do You Need

Do you need help determining how much life insurance coverage you need?  Know the ballpark by using these methods.

Overview

Knowing how much life insurance you will need will take the uncertainty out of the equation.  You will have peace of mind knowing your loved ones will have sufficient money for their needs.  There are reliable methods to compute your life insurance amount.  

Get the Right Life Insurance Coverage 

In life, the only thing certain is uncertainty.  It is never guaranteed.  Here today, gone tomorrow.  This is why getting a life insurance is a must.  The amount you choose for life insurance coverage will depend on several factors.  For those with young dependents, getting a higher coverage is a no-brainer.  Aside from the age of dependents, your age and spouse's age matter too.  The income you bring in, debts and expenses – all these need to be considered.  

The amount of life insurance coverage should help provide for your family when you are no longer around.  It should be enough to allow them time to live comfortably while recovering and grieving the loss.  The insurance coverage should also give your loved ones enough time to find a replacement income.  For instance, your wife will have enough time to get a job that could pay for your children's needs.

These are the factors that figure in determining how much life insurance coverage you will need.  Based on these factors, there are three approaches to coming up with a sufficient life insurance coverage.  

The first rule of thumb and probably the easiest is - to multiply the annual income you make between seven and, at most, 10. If you're making $50,000 per year, then the life insurance policy should be between $350,000 and $500,000.  This is a good starting point for coming up with an appropriate number.  However, this computation might not apply to people with five or more young children.  Or, this may not be enough for someone with several mortgages to pay for every month.  

The second method is the valuation of your assets.  If your house and car are paid off and you have pension money coming in or have sizable savings in the bank, the life insurance amount may not need to be high.  This method is computed by determining the annual income your family needs for a specific number of years. For instance, your family may need $50,000 per year to live comfortably.  However, in five years, your family will get part of your pension, retirement plans, Social Security, interest income from CDs, investment income or your wife will secure a good-paying job.  To compute the insurance amount in this instance, you may need to deduct how much money will start rolling in so your family can generate $50,000 per year total income in five years' time.  If the income from various sources will add up to $50,000 or more, then you might not need to get a bigger coverage.  

The third method of computing life insurance policy is to determine how much money can be invested so it will yield a certain amount per year.  If you get a $500,000 life insurance, investing this amount in bank CDs or bonds and securities may yield your beneficiaries a 4 percent interest amounting to $20,000 every year for life.  Depending on the cost of living, your spouse may not need to work full-time since she will receive an assured amount of $20,000 per year forever plus possibly money from other sources of income like a pension or Social Security. 

The amount of life insurance coverage will depend on your circumstances in life.  If you have three or more young dependents, then losing you will definitely create a huge dent in the family's income especially if the spouse does not work.  You may need to consider Method Three to ensure that a fixed amount of income comes in for your family every year.  Or, you can use Method One but make sure that the coverage amount is enough for your spouse to provide for your young kids' needs until they're old enough to be left in the house without supervision.  

The second option usually works for an older couple with grown-up kids.  In a few years, your kids will have a life of their own.  Or, the wife will start getting her Social Security benefits or your money from retirement plans.  With fixed income coming in and no dependent to look after, your spouse can live comfortably on a lesser life insurance coverage.  Life insurance helps in replacing income before reaching the age of 65.  Once you will get to that age, you will enjoy a number of benefits such as free health coverage, Social Security money, and pension to be able to afford paying expenses out-of-pocket.  Also, around that age, your kids are out of college and are earning money on their own.  The risks and responsibilities on your shoulder are lesser compared to when you are just starting out.

However, inflation and cost of living changes might factor in.  The $50,000 you earn today may not provide a comfortable life to your loved ones 10 or 20 years down the line.  These two factors need to be considered too.  It would be a good idea to get the maximum life insurance coverage you can afford, possibly $1 million or higher.  This way, you can be sure that your family can put up with any eventuality.  

You can choose three options in determining the right life insurance amount:  First, Multiply your yearly income by seven up to 10.  Second, deduct any fixed income your family will get such as pension, Social Security, interest income, investment income or your spouse's income earned from work.  Third, get sizable life insurance coverage so the family can live off on fixed annual income from investments.

There will always be risks, changes, and uncertainties.  Knowing these methods and applying them to determine the best life insurance policy to get will help you mitigate your dependents' risks.  In life insurance, it is always a good idea to overbuy rather than under buy.  Do not leave your loved ones groping in the dark.  Help them get back on their feet even if you are no longer around. 

Small Business Loan Versus Seeking an Angel Investor to Gain Capital

Capital is the lifeblood of a small business.  Without capital, it will be hard to finance necessary purchases such as raw materials or finished goods for inventory, office supplies, and equipment.  Unless you have a lot of money at your disposal, paying expenses out-of-pocket may drain you of your finances later.  Getting an outside funding is the next best thing. 

To secure capital, small businesses have several options.  Getting a small business loan is one. Another is seeking an angel investor.  Now, which option to choose?

Weigh your options carefully as this decision will affect your business long term.

If you’re on a fence and don’t know which option is best for your business, read on.   

Small Business Loan

When you borrow money to finance your business, you incur a debt.   Small business

loans are term loans that need to be repaid at a certain period of time.  You apply for a bank loan then get a lump sum.  Then you will pay a fixed amount, which include the principal plus interest, monthly or bi-weekly, depending on the terms, until the loan is paid off.  

The primary advantage of a business loan is you get to keep full control of your

company.  The bank does not meddle with your business operations and decisions. You get to run the business the way you see fit.

The main disadvantage is the application process could be cumbersome.  The  owner has

to show proof of the business' operating history and its profitability or a positive cash flow. The owner may need to secure a lot of documents as proof such as tax returns, bank statements, balance sheet and income statements. 

Another disadvantage is if the business fails, the owner has to pay back the debt. Since 

you owe the bank or credit union some money, you need to pay it back.  If you cannot pay the debt back, this may lead to legal repercussions.  

Funding from an Angel Investor

An angel investor provides capital to a business in exchange for owning a percentage of 

the business.  Most angel investors invest money in start-ups.  Some of the most famous businesses that secured funding from an angel investor when they first started include Facebook and Uber.

The typical seed funding that an angel investor puts up is between $25,000 and 

$100,000.   Since the investor joins the business in the early stages, such as before the product or service launch, the investment made is not usually high compared to that of a Venture capitalist, whose investment amount often runs above $1 million per business. 

The main advantage of seeking funding from an angel investor is the investor shares the risks together with the small business owner.  If the business fails, the owner is not expected to pay the angel investor back.  The investor sinks or swims with you.  

Another advantage is an angel investor can coach or provide small business owners with expertise, guidance and advice.  Most angel investors are seasoned business owners themselves.  They know how to run a business and what needs to get done. 

The main disadvantage of an angel investor is you cannot have total control of your business.  An angel investor is co-owner of the company.  He or she shares in controlling the reins of the company.  

As a business owner, it is your responsibility to choose your method of procuring investment.  Keep in mind that the future of your business rests on your decisions.  Whatever you choose, these two options are both effective if you invest the money wisely.  

How the Economy Affects Property Prices

The state of the economy affects property for sale prices.  Economic conditions can dictate the selling price of a house. There are a number of reasons cited for the seeming correlation between the two.

One reason is employment.  When the economy is doing favorably well, a huge number of people have stable employment.  People who are gainfully employed feel confident of their purchasing power.  They know they can afford to pay monthly premium for the house they want to buy.

Unemployment, on the other hand, produces the opposite effect.  When a person does not have a stable job, he is wary about buying a house.  Also, a steady employment is a requirement for mortgage application.  Without a job, it will be impossible for a person to get a mortgage.

Another reason is demand.  A slow-performing economy can cause a fluctuation or fall of demand for housing.  An unstable economy can make the person think twice about making a huge investment such as buying an apartment for sale.  He needs to ascertain first that he has the money to spend for necessities in the next few months or in the event that he loses his job.  Economic uncertainty can curb spending due to fear of economic loss.

During an economic crisis, selling auction property will be difficult.  A property for sale such as bungalow or condominium will not be attractive to people.  They are more concern about buying or paying for the necessities such as electricity bills, food and rent.

The demand for a house for rent may increase in an economic recession because most people would rather rent than buy a house.  This is one of the reasons why a property for rent becomes popular during recession like a low-cost condominium. A cheap apartment for rent is a welcome news for cash strapped buyers.

The third reason why economy affects property prices is the foreign investments coming in.  When a country has a number of foreign investors, understandably, there will be a growing demand for properties.  As the demand grows, the house for sale prices also goes up. Foreign investors need to invest in properties such as a house for sale to be able to operate. More foreign investors mean more people finding employment.  People can now afford to pay for an apartment for rent or buy an apartment for sale.

A fourth reason why economy can affect the price of the property is the crime rate.  A faltering economy will most likely see a rise in crime rates such as robbery and killings.  A place that is high in crime rate will not look desirable to the property buyers.  Even if the property being sold is an auction property, people will still not be motivated to buy it due to fear of being targeted by criminals.  This will cause a decrease in demand for housing such as a bungalow in that specific area. There is also probably a decrease in demand for property for rent or house for rent in that area as well.

All these economic factors can affect the price of the property.  A well-performing economy can induce increase in demand for housing just as a poor economy can discourage purchase of houses. Economic growth can help spur real estate selling and buying.  It can help boost confidence in a potential buyer so he will commit to a long term mortgage associated with property purchase.

Social Media and Politics

Social media plays an important part in politics today.  If a politician wants to win the election, it will be a gross mistake to overlook the role played by the social media. Facebook, Twitter, LinkedIn, Pinterest and even YouTube, are some of the most potent social networking sites online these days. Harnessing the potentials of these sites can provide competitive edge to the politician or the entire political party.

 

Quick Dissemination of Information

The lightning speed with which social media can disseminate information is simply astounding.  News pertaining to politics or announcements made by politicians would reach all parts of the globe in just a matter of seconds. One Facebook or Twitter posting could be seen by millions of people worldwide, depending on the number of follower the politician has.

Quick access to political news provided by social media sites is unprecedented. Take for example the recent uprisings in Middle East, the Egypt and Tunisia protesters turned to Facebook to voice out their political views and concerns.  This eventually toppled the reigning regime at that time.  Social media can practically change the course of political history if utilized well.

Mobilize Citizens and Youth Votes

Social networking sites can quickly mobilize political movements or political campaigns. One Tweet or Facbook status message by a powerful political figure can mobilize citizens into action.  This is particularly useful during elections wherein politicians need to gather people quickly in a specific area for their political campaign.

Followers of the politician will quickly know where or when the meeting or political rally will be.  Since billions of people are utilizing social media these days, the news will spread rapidly.  The political party can expect a huge turnout in their political rallies.   

A huge number of social media users are the young people.  Political analysts had lamented the lack of active participation of this demographic in the elections.  The use of social media can change all that.  Using the social media makes it easier for election candidates to target the youth and generate their support for the electoral campaigns. 

Break Barriers

The reach of social media goes beyond national borders.  The political party or figure can reach millions of people in all parts of the globe in seconds.  Even at a national level, the networking sites are extremely helpful.  Instead of visiting each and every state, the politician can announce his plans or does his campaign strategy online.

It is highly cost effective, convenient and quick to begin political campaigns online. 

Connect Personally with the Crowd

Social networking sites make it possible for politicians to talk to constituents, supporters or even their critics and foes online.  They can express their views to their followers.  The followers can also provide their ideas on a certain topic, for instance.  It is a great way to get to know supporters on a more personal level.

It would have been physically impossible for a politician to talk to each and every supporter. But with online media sites, he can do so without leaving the comforts of his home. This is vital for the political party because they get to understand what the ordinary people are thinking thus, making it easier for them to address their concerns.

The social media creates a platform for citizens that enable them to voice their opinions immediately and effectively.  This was the strategy utilized by the then US presidential aspirant and current US President Barack Obama.  While his opponents focus on impressing the bigwigs, President Obama focused his campaign on grassroots campaigning. 

He personally communicated with the voters in his website and social media accounts and provided them with straightforward answers to their queries.  Consequently, the voters feel confident in voting for him.  His campaign style of allaying the apprehensions of the masses later won him the votes.

The power of social media can make or break a political figure.  They cannot be undermined. Failure to utilize the free networking sites for political activities is a major mistake.  The social media provides the masses a venue to communicate with the ruling classes. At the same time, help political parties promote their political agenda.

Get Free Work Training through Job Corps

Job Corps is heaven sent for students who want to further their education, acquire technical skills and earn a college degree at no cost. Yes, this program is totally FREE to all youths who want to learn and earn a degree.

This education program is sponsored by US Department of Labor and is available for students between the age 16 and 24, who are US citizens or permanent residents, and those who want to acquire technical training or help getting a job.

Location

The Job Corps program offers 100 technical courses in more than 125 centers spread all across the US.  If you do not live near the center, the program offers residential housing. They even provide transportation to students for the first visit. Then on winter and summer trips.

Courses Offered

With more than 100 technical courses available, you can surely find one that matches your interest.  They offer courses on office medical assistant, bookkeeping, green job training in advanced manufacturing, construction, automotive and so many others to choose from.

Aside from technical courses, they also offer courses that help the student develop social skills, employability skills, how to live independently and English proficiency.

Other Benefits Provided

The student will not only learn different technical and living skills, they will also get to enjoy a number of benefits such as:

1. free residential housing

2. free career planning

3. free meals

4. free driver's education

5. free health and dental care

6. living allowance allotted bi-weekly and

7. clothing allowance

It depends on the center, but in some instances, they also provide free childcare programs for single mothers/fathers.

They have separate male and female dormitories to allow students privacy and security within the campus.  The number of roommates could vary from center to center. It could be as little as one roommate or at most 7 roommates.

How Long are the Courses

The courses are self-paced. This means the student can learn at his or her own pace. It could be done as little as 8 months or 2 years.  The center recommends at least 1 year stay to be able to get maximum benefits from the program.

Rules 

Just like any campus, Job Corps Center requires students to be well-behaved. Drugs and violence are NOT tolerated. Students who violate this rule will be immediately removed from the program.

Job Placement

Before the students finish the program he or she chooses, the center will help them do the job search. Six months after graduation, a career specialist will contact the student to ensure that things are transitioning smoothly.

Job Corps also helps students with various social services such as health care and other needs.

Take advantage of this free opportunity provided by the Department of Labor USA.  For the young people, this could mean the difference between living in poverty or having a brighter future.

Your decision today could change your life for the better forever. So take that leap. Face the challenge. Equip yourself with the necessary skills to up your chances of getting hired.

If you are interested, you can enroll in Job Corps by calling (800) 733-JOBS or (800) 733-5627 right now!  

For more details, here is a link to their Frequent Asked Questions:  Jobcorps FAQs

How to Earn Income in Esthetics

Esthetics or Aesthetics pertain to the industry of beauty.  Cosmetology, massage therapy, plastic surgery and even fashion fall under this industry.  Esthetics sells because it nurtures the cusomter's self-esteem. Looking good always equates to feeling good.  Esthetics help achieve that goal.

Perhaps, the most popular is cosmetology.   Hair and make-up, manicure, pedicure, hair color, facials and spa.  More and more people, not just women, are drawn to these aesthetic services.

To get a job this industry, it is important to get a certification.  A short course on aesthetics or cosmetology can get your foot on the door.  Job opportunities can include working in hair salons, hotels, spa facilities, wellness centers, doctor's office and having your own private practice.

It does not take long to get the certification.  Some of the courses last 3 months. Others could go 6 months or beyond.  It depends on the range of courses you will get. If you just want to do mani/pedi, 3 months is enough.  But if you want a whole range of beauty services such as hair, make-up, spa, facial treatments, dermabrasion and others, 6 months would be the minimum requirement.

For a busy cosmetologist, it is not unusual for them to earn $60,000 a year.  The more customers, the more you will get paid. Added to that is the handsome tips you will receive on top of the pay.

Here are some jobs related to the beauty industry:

Hairstylist

This is particularly in demand on special events or occasions like wedding, debut, graduation, anniversary and others. An experienced hairstylist could make a killing on these events.  In weddings, it will not be unusual for hairstylists to come up with bridal packages for the bride, mother of the bride and the bridesmaids.

Make-up artists

Make-up artists just like hairstylists are in huge demand for special occasions just like hairstylists.  They can come up with package deals too to sweeten the pot like discounts for JS proms or wedding packages.

Salon Owner

This requires investment on your part.  You need to rent a place.  Buy equipment and supplies. Pay electricity. Pay for repairs and maintenance.  Inventory of products like nail polish or hair products.  Pay salary for staffs. But this can be financially rewarding if your business takes off.

You can hire cosmetologists and pay them commission depending on the number   of clients they have that day. Or, you can pay them a fixed rate every day.

The number of clients you will attract to your salon depends on a number of factors. One is the location of the salon.  Being at the city center or near a number of business establishments, schools, or a high-end community could entice a number of patrons to the salon.

Beauty Product Developer  

These are the people who work behind the scenes.  They develop new hair products or new equipment to be used by cosmetologists.  If you invent your own product, have it patented and distribute it, this could mean huge business for you.

Consider the story of Alli Webb, who turns a blow dry business, called Drybar, into a $50 million venture in just 2 short years.   Webb developed a business that offers a simple blow-dry-and-style no cuts, no color "non salon" business format.

Beauty Writer  

You can go freelance or full-time writer for a beauty publishing company.  There are sites online that accepts people who can write for the beauty industry.  Demand Media hires beauty writers and pays $20-35 per 300 to 500-word article.  Topics for this writing gig include hair and make-up and fashion advice.

If you type "beauty writer" at indeed.com search box, a number of jobs would show up.  These jobs are updated daily so check every day to see the latest jobs in this field.

Remember that in every endeavor, you need to have passion in what you do.  I cannot stress enough that passion in your job is what makes the difference between spectacular and so-so performance.  If your passionate about the beauty industry, you enjoy making people look good and feel good about themselves and it does not feel like a chore to you, then you should go for it.  If you love what you're doing, it will show. And customers would enjoy coming to you.  The more customers you have, the higher money you will make. Do what you love and the money will come.

How to Make Money Teaching English Abroad

1.    

For native English speakers teaching English online could be a good source of income. With many people wanting to learn English from other parts of the globe, being able to speak English fluently could turn into a wonderful money making strategy.

 Most of these English-learning clients come from Asia.   They prefer to talk to the English teacher via video chat.  Some of these English schools are based offline.  Others are online.

 A lot of native English speakers are making lucrative income teaching abroad.  Countries like South Korea, China, Japan, Taiwan and the Arab States are huge markets for native English speakers.

 Teachers usually earn anywhere between $2,000 and $5,000 per month.  This is particularly true in the Arab States.

 For Asian-bound English teachers, the low cost of living in Asia is a huge draw.  Also, free housing, health insurance and plane fares help sweeten the deal.  To be able to travel to Asia free is a huge perk for Native speakers who want to  explore the world.

 It is like being paid to travel.  Teaching contracts usually run up to a year. Some teachers renew their contracts to be able to stay longer. Cultural immersion at its best.

 Some of these English teaching positions abroad require TESOL, TEFL or CELTA certification.   These are short courses offered online or offline. Some schools do not require certification. But having a certification can be an advantage.

 A bachelor's degree is often required in these jobs.  Some may not need teaching experience.  But a teaching experience would give you a distinct advantage.

 To be able to find jobs for English teachers abroad, you need to look into jobsites that specifically feature these jobs.

Some of these websites include the following:

ESLJoblink 

EPIK

Teach in China

Aeon

Hess International

Make sure you check out their requirements before applying.  Also, find out what the benefits are and how much they pay for the job.  You could get free accommodation, airfare, health insurance, work visa, teacher training and teacher materials.