Marrying for solely financial reasons has always been frowned upon in our moralistic culture. As much as we may idolize wealth (as seen through our love affair with spoiled reality television stars), we still frown upon the blending of money and marriage when it’s for pure financial gain.

However, almost every woman who was once a little girl has played the M.A.S.H. schoolyard game, where you picked a number that would determine whether you lived in a Mansion, Apartment, Shack, or Home. And you can bet your bottom dollar that no little girl ever wanted to get stuck with Shack.

When choosing a partner for the rest of your life, doesn’t money ever come into play? While your partner’s salary or earning potential may not be the only factor in determining your decision to say “I do,” can we at least admit that it is a factor?

My mother would often tell me as a little girl to marry a rich husband. Whether she said it in jest or in all seriousness, I am not sure. I never took her words literally and now that I have gotten older (and have, indeed, married) I have translated her words from “Marry rich” to “Don’t marry poor.”

When you choose to marry rich, a person’s earning power is seen as a key factor in deciding whether to create a lifelong union, whereas when you choose not to marry poor, a partner’s salary is simply open of the last deciding factors, after it has been determined that you get along for a host of other reasons and that a lifelong union could actually be a possibility.

But say you met the man of your dreams—you got along perfectly and you knew you could be compatible for life (or as much as you can be). However, they were extremely poor, had mounds of debt, and you didn’t see any earning potential for them within the next ten years. Would you still consider marrying them?

Marrying rich is seen as a money-hungry tactic, while not marrying poor is seen as a smart decision. It’s important to be on the same page financially with your partner. It doesn’t necessarily mean that you both need to earn the same amount of income, but rather agree on the same financial goals for each other and your future together as a couple.

My husband, while definitely not rich, is by no means poor either. We have had our fair share of arguments over money, and I can see how having enough money would eliminate a large amount of our squabbling, since money seems to be pretty much the only thing we argue about (well, money and housework—however, if we had more money, we could also hire a housekeeper on occasion, and that would solve that issue as well). It would have been really nice as well to enjoy our first years as newlyweds without having to worry about money as much.

However, these are the choices we made, and while it has been a struggle, I am honestly happy with how things are turning out. I didn’t marry rich, but I didn’t marry poor either. And maybe that’s the best you can ask for.

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My husband and I are moving and we’ve been scouring Craigslist ads to buy our furniture. We currently live in a shack and are upgrading to a two-bedroom townhome, so we need items to fill up the space, but we’re still two newlyweds on a budget that don’t have a lot of money to splurge on high-end furniture. Enter Craigslist.

I am honestly surprised by the number of people who have really bad ads. You’re trying to sell your stuff, right? You can’t sell your stuff with a bad ad.

Here are a few quick tips on creating a good ad and how to sell  items on Craigslist:

1. Always include pictures. I’ve seen so many postings where people post ads and fail to include pictures. With hundreds of other ads, why would I take the time to email you about your furniture. “Pictures upon request” just doesn’t cut it. Take the time to actually take some photos and post them with your ad. It will help your items sell a lot quicker.
2. Take the time to take good pictures. Remove your clutter from the area, have natural daylight, take a high quality picture. The better someone can gauge whether it’s the item for them, the less time it will take for you to respond to inquiries.
3. Don’t say “firm” in your posting. I never email anyone who is firm on price. Craigslist is all about haggling. If you want a certain price, then ask for more money so you can meet somewhere in the middle.
4. Play up the positives. If this is a designer brand, state it. I know “Pottery Barn” and “Crate and Barrel” are bigger sellers than say “Target.”
5. Post frequently. If you’re selling something in a high traffic subject, you need to post an ad about once a day. This will help for two reasons: you’re seen more often, and if people are searching for a certain item, you’re more likely to be toward the top of the search terms. Which leads me to my next tip…
6. Include keywords. These can be added to the bottom of your Craigslist ad. You’ll see it often for apartment complexes, but feel free to do it for items too. You can put in the color of an item, the area you’re located, anything descriptive that someone may search for. For example, if I’m trying to sell a couch, I may put my keywords as : brown sectional, sofa, couch, city, large. The more descriptive keywords in your post, the more likely it will show up in someone’s search terms.
7. Respond to email inquiries quickly. A lot of times, people are emailing several ads to find what they’re looking for—especially if it’s something generic, like a microwave or fridge. The person who responds the quickest may have a better shot of making the sale.

Use these tips to help make a good ad and sell your stuff on Craigslist!

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The recent recession, and the current concern over what’s next for the economy have many people wondering how they can make their finances a little more secure. One way to do this is to improve income diversity with the help of a home business. Before you start a home business, though, it’s important to make sure that you have what you need. Here are 3 things you need if you want to start a home business:

1. The Right Equipment
Some home businesses only need a little home office space with little more than a table and a computer. I have an all-in-one printer, but I could probably live without it. Other home businesses, though, need a little more. If you are creating something, you need the right supplies and you need adequate space for assembly. Before you start your home business, find out what you need, and then acquire it. Organization ahead of time will help you avoid some problems later.

2. Time
A successful home business isn’t built overnight. It isn’t even built in two or three nights. You need to have the time to make your home business successful. This means finding time to write everyday if you are into freelance writing. My sister-in-law needs time to crochet the lovely items she makes, and to develop the original patterns that she sells.

You also need to have the time to perform house-keeping tasks like invoicing, marketing and web development. Some of these tasks might eventually be outsourced, but when you first start out, you will need some time. Indeed, you might find yourself working more than ever — even if you quit your day job to start a home business. The initial stages of a home business require intense attention and time.

3. Determination
Not only do you need to have the right equipment and time, but you also need plenty of determination. You need to be willing to do what it takes. You need the self-discipline to make yourself get up an hour earlier to work on your home business, or to look for vendors in the evening after having a tiring day at your regular job. Grit and determination are necessary if you want to be responsible for your own income. Think about what you are willing to do in order to make your home business work, and then do it. Being self-employed can be grueling at times. For many, the rewards are worth it, but for others, it’s just too stressful.

4. Insurance

When starting a business from home Public Liability Insurance can be a very important thing to take into consideration, it can be tailored to suit your needs. An example of this would be plumbers insurance. With Endsleigh this can be further tailored to meet your requirements.

What else do you need to make a successful home business?

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When you go to buy a car, you want to get the best deal. While getting a good deal does rely on your negotiating skills to a certain extent, getting the most bang for your buck also includes getting a good interest rate on your auto loan. However, unless you have a good credit score, you won’t be able to get the best interest rate. As a result, it helps to be educated about credit score ranges, and how you can improve your score to get the best possible interest rate.

Saving Money on Your Auto Loan
You can find out about the best credit score to buy a car by heading over to myFico.com. The web site offers a handy calculator that can help you see how much you could save with a better score. According to the site, using national averages, you should be able to get an interest rate of 4.132% if you have a credit score of at least 760. You can still do pretty well with a score of between 700 and 759: 4.354%. Other average interest rates depending on your credit score range, according to myFICO.com, include:

• 680 – 699: 4.531%
• 660 – 679: 4.745%
• 640 – 659: 5.175%
• 620 – 639: 5.721%

If you are below 620, there is a good chance that you will have to pay more than 6% on a car loan. Additionally, you might have trouble buying a car with a loan if your credit score is below 600, although some dealerships and others offer financing to those with credit scores as low as 580. But you will pay a premium in a higher interest rate, spending more money over time.

Improving Your Credit Score
It can be a good idea to check your credit score before you buy a car. This will give you an idea of what to expect — and give you an idea of what you might need to do to help fix your credit to some degree before you apply for a car loan. You may have to pay for your credit score, though. However, checking it can be valuable. You should also check your credit report for errors, and try to get them fixed. If your identity has been stolen, or if there is a mistake on your credit report, it can contribute to a lower credit score. Other than fixing mistakes on your credit report, some of the things you can do to boost your score include:

• Make sure all your payments are on time.
• Pay down your debt.
• Keep old accounts open until after you buy your car to show a longer credit history.

With a better credit score, you will be able to get a better deal on a car.

If you have not checked your score before, or maybe not recently? Click Below

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One of the biggest debates in the world of personal finance is whether it is preferable to use a credit card or a debit card. Of course, there is no standard answer. As with all issues in personal finance, whether you should use a debit card or a credit card comes down to your own preferences and your financial goals. But here are some things to consider as you make your decision:

Rewards
There are some debit cards with rewards, but these are few and far between. Many banks require an annual fee for your debit rewards program. One of the few debit rewards programs that is fee-free is the program offered by PerkStreet Financial. For the most part, though, if you want rewards, you have to go with a credit card. You can receive travel rewards, cash back, gift cards and merchandise with credit card rewards programs.

If you are interested in earning rewards, you should look for appropriate programs, and you should consider using a credit card, which can provide you with more access to a wider variety of rewards programs.

Interest and Debt
Many people are wary of getting into debt, and worried about the money they could waste on interest with a credit card. In such cases, it is usually better to stick with a debit card. While a credit card can be a great tool, and you can avoid interest by paying off your balance each month, many people find the allure of credit cards too great, and find themselves slowly falling into the debt trap. Using a debit card can help you avoid that altogether, requiring that you only use money that you have.

Fraud Protection
Anymore, most debit cards branded with a major credit card company logo provide fraud protection. It used to be that debit cards didn’t offer the same protections, but many debit issuers now offer protection against fraud that is comparable to what you would see on a credit card, so many people are more comfortable with using debit cards, without worrying too much about fraudulent purchases.

When You Should Use a Credit Card

There are times when a credit card should be used. These times usually have to do with traveling, and with possible holds. A hold on your checking account funds can lead to an overdrawn account, and other problems. Here are some times when it is preferable to use a credit card:

• Renting a car: You often get automatic insurance coverage from the credit card issuer. Besides, most car rental places won’t accept a debit card for rental.
• Hotel room: Hotels often place a hold of more than your bill. This could be a problem on your debit card. Use your credit card to keep your checking account funds free.
• International travel: Depending on the fees involved, it might make more sense to use your credit card. Plus, it keeps your checking account out of foreign transactions.

What do you think? Which do you prefer to use?

Image Source: http://www.flickr.com/photos/debtcovered/

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One of the financial questions you have to answer when you are part of a couple is this: Should we open a joint bank account? The answer, of course, has largely to do with personal preference. My husband and I find that there are benefits to having a joint account. Even if you retain separate accounts for your own spending, having one joint account that you can use for shared household expenses, or an emergency fund, can make your cash flow a little easier through your personal economy.

Having a joint account has worked well for my husband and me because we share a lot of expenses. He doesn’t like worrying about money very much, so he’s not involved as I would like in the finances, but he does call when he wants to make a purchases over a certain amount, and he asks how long we need to save up for large purchases. Additionally, having a joint account makes it easier for the survivor to access money if one of us dies.

Setting Up a Joint Bank Account

As long as you both are willing to give the other access to the money you share, setting up a joint account is fairly straightforward. Most savings, checking and money market accounts can be set up jointly. Just go into the bank with the required identification, and you can set up a joint account.

You will need to decide what type of joint bank account you have. The most common type is the kind that allows either of you to access the money at any time, and for any reason, with rights of survivorship. Make sure that you have this type of account if you both want unrestricted access to the account.

There are also joint bank accounts that have limitations. If you are concerned about how your partner deals with money, you can get a joint checking account that requires you both to approve a withdrawal or sign a check. This can get tedious, but if you set up your shared household expenses through bill pay, once you get things automated, you can just make sure that you each deposit the requisite amount of money from your own accounts to cover shared expenses. Other than that, most of these banks offer good savings rates and CD rates as well.

It is also possible to open a joint checking account that allows your partner access to funds while you are alive, but specifies a different division of the money in the account after you die. Before you open a joint bank account, make sure that you understand your options, and you choose what works best for you.

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Last week, many of us paid taxes, or filed a tax return for taxes overpaid throughout the year. This time of year often prompts many to wonder why we need taxes, and figure out what they are used for.

What are Taxes?
Simply put, taxes represent a contribution — of money — that we make to the government. This contribution is compulsory, levied by law. This means that a portion of your income is given to the government. Additionally, taxes are also contributions that are paid as an additional cost to some goods and services, such as the gasoline taxes we pay, or the sales tax that a state might charge. In some cases, taxes are levied on the value of property you own, such as real estate taxes, or a premium added to your vehicle registration based on the value of your car.

In the U.S., the Constitution, under Article I, grants Congress the power to collect taxes and duties. The 16th Amendment to the Constitution deals specifically with the clarification of the income tax. States can also collect their own taxes.

Why Do We Need Taxes?
Many of us take for granted certain services that we enjoy, such as education for our children, police services, mail services and a strong military. We also take for granted that roads will be paved and bridges built. However, these things don’t just come about. Someone needs to pay for them — and we do, through taxes.

Taxes are used for a variety of purposes. Article I, Section 8, of the Constitution begins:

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States;

There then follows a list of examples of things that Congress can use taxes for. The list, of course, is incomplete since listing everything is impossible. But the founders make it clear that if Congress thinks it promotes the general welfare of the country, taxes can be collected to pay for it. (You can view a “taxpayer receipt” from the White House.)

Of course, we are endlessly debating the use of tax dollars, since not everyone agrees with how they are spent. Most people agree that some money needs to be spent on the military, and some needs to be spent on keeping our infrastructure in good repair. Many even agree that money should be spent on providing children with a basic education. However, issues of health care spending, spending on the arts, and spending on science start to raise blood pressures — especially if spending is aimed at small projects in specific jurisdictions (known as pork barrel spending).

What do you think about taxes? What do you think they should be used for?

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Carrying a mortgage is customary for most homeowners. It’s rare indeed when someone can actually pay cash for a house. It’s generally hard enough to come up with the money for a down payment. In fact, it’s not all that rare for people to buy a home with very little cash up front – but when a lender allows someone to take out a mortgage with little money down, they need to protect themselves. That where private mortgage insurance (PMI) comes in.

What Is Private Mortgage Insurance?

When you buy a home it is a routine matter to put a certain percentage of the price down and pay the rest on the installment plan – by making regular, predetermined payments. If you put less than 20 percent down, a lender will often require you to take out an insurance policy that will protect them if you’re unable to meet your financial obligations. That policy is called private mortgage insurance.

How It Works

Although you more than likely took out a mortgage with good intentions, sometimes things happen that you don’t anticipate and can’t prevent. Losing your job suddenly or an expensive medical emergency popping up could make it impossible for you to pay your mortgage in a timely manner. If the situation persists you may have to default on the loan. Having a private mortgage insurance policy in effect protects the lender.

Protection for the Lender

When a lending institution gives someone a loan for a home they generally require 20 percent of the property’s value as a down payment. The reason they do that is if you are unable to continue making payments, or simply fail to do so, they will be forced to foreclose. Foreclosure costs money. Paying for real estate agent fees, any property damage, or attorney costs add up. The lender knows that if you have 20 percent equity in the property you’ll be more likely to do all you can to try and make your payments. They also know it’s hard to come up with 20 percent for a down payment, so they may be willing to offer you a loan at a lower down payment percentage, sometimes as little as 3 percent to 5 percent down. When that happens, they know you don’t have as much of your money invested, so there may be less incentive to try and make your payments. In order to protect themselves, lenders will usually require you to take out a private mortgage insurance policy. When they’re protected in this manner they know they stand a better chance of getting paid what is owed to them. The price of the PMI is usually included in your monthly mortgage payment.

Both the Borrower and Lender Benefit

Private mortgage insurance benefits both the borrower and the lender. The lender is assured that they won’t lose any money, and the borrower is allowed to become a homeowner with significantly less cash outlay. A private mortgage insurance policy allows people to get into a home much quicker, and without a huge down payment. Without the private mortgage policy in effect most lenders wouldn’t be willing to take the chance that you’d default on the loan and they’d be stuck with property.

Building Equity

After you’ve been in your home for awhile, and have made your payments in full and on time, the equity in your home will grow. As it reaches the point where you owe less than 80 percent of the property’s value private mortgage insurance may no longer be necessary. After all, the reason for the policy in the first place was to protect the lender’s interests. Now that you’ve paid the loan down you feel it’s time to drop the private mortgage insurance. The Homeowner’s Protection Act of 1998 (HPA) allows you to do this. Another issue to think about is Contents Insurance to protect the valuables in your home. In fact, it becomes automatic after you’ve reached the point where you owe less than 78 percent of the value – but only if you have a good credit history, meaning your payments have been made regularly, and on time. There cannot be a second mortgage for this to happen.

Tax Advantages

The IRS Publication 963 states that residents of the United States can take a tax deduction for private mortgage insurance payments made to various government agencies or a private insurer as of the 2010 tax year. Check with the IRS or your accountant for details.

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Mistake # 1. Buy and hold mutual funds

This strategy lost money over the last 10 years. ETFs, Modern Portfolio Theory and semi-annual rebalancing worked beautifully. You were able to capture gains of NASDAQ 2000, real estate 2005, clean energy 2007, DOW 2007 and more!

Mistake # 2. Commission Based Brokers

They are paid to sell you things and most don’t have the ability to offer you ETFs and no incentive to offer you Modern Portfolio Theory. Commission-free brokers are paid for “assets under management,” meaning they want to keep you happy.

Mistake # 3. Trading on Analyst Recommendations

Following analyst recommendations is a losing proposition. Researchers at the University of California and Stanford found that, in the year 2000, the stocks most highly rated by analysts lost 31 percent for the year. Even more incredible is this finding from the study: The stocks least favored by the major analysts soared 49 percent. This study examined 40,000 stock recommendations from 213 brokerages. Analysts are not all crooks, but they are definitely not fortune-tellers. This is mostly just a case of supply and demand, not dumb, corrupt analysts (though there are a few of those).

Mistake # 4. Bankruptcy Buying

Think buying Delta at $1.54 a share when you’re positive that they will come out of bankruptcy is a brilliant idea? Guess again. Reorganization plans commonly call for the cancellation of the existing common stock, with holders receiving nothing. Nada. (Financial Translation: your stock becomes toilet paper.) Lawsuits are a difficult and costly way to try to recover losses.

Mistake # 5. Pet Rocks

It’s very tempting to buy stock after shareholders have earned seven thousand times their investment, or real estate after the industry has posted intergalactic gains, but that is called chasing money. There were people, lots of them, who bought real estate at peak prices in 2005. Too bad losing weight isn’t as easy as losing money.

Mistake # 6. Hot Tips

Hot tips are often merely “Pump and Dump” or Ponzi schemes. Shysters and scam artists prey on you through this mechanism – from Madoff to the penny stock ads that you receive in your email.

Mistake # 7. Sure Shots

If someone promises to double your money in a set period of time, or to give you annual returns that are double or more of what the average person can achieve, assume that you’re dealing with a novice or a scam artist, especially if they want you to write a check before you do any due diligence into their real rate of return and a background check. This would have saved you from Bernard Madoff. Even though he had a good pedigree (like a handful of high-profile scum bags before him), he was notorious for providing no backup documentation of how he achieved his astronomical gains. Beware anytime someone wants you to hand over money before you have a chance to read or research anything.

Mistake # 8. Buying on Headlines

Headlines are written by editors to catch your eye. If you don’t read the fine print, you could be missing the most important information. Before United Airlines declared bankruptcy, investors gobbled up UAL shares on the headline that United had received $1 billion in promised concessions from its unions. The investors assumed that this was great news and that the labor concessions were all that United needed to soar the skies once again and be profitable (with the help of some federal loans). A key consideration was hidden on the inside pages of the article, however: that the Federal Loan Guarantee required. $1.5 billion in union labor concessions. In fact, receiving only $1 billion in concessions – when the loan was going to fall through unless $1.5 billion was delivered — was very bad news, not the good news that the headline trumpeted.

The Loan Guarantee application was rejected, and United Airlines was forced into Chapter 11 only a few weeks after that headline appeared in what many people consider the country’s most reliable news source, the New York Times. The headlines of less respected news sources can be even further from the complete story. The New York Times had actually printed the complete story, but too many didn’t take time to read it.

Mistake # 9. Press Releases

Press releases are written by professional writers, who are employed by the company they are writing about. A company can talk about an increase in revenue without ever mentioning that increased revenues don’t mean the company is profitable or that, due to cash constraints, the company’s fiscal health is on the ropes. If you read anything that is from PRNewsWire or BusinessWire-services that distribute press releases written by corporate PR people-ask yourself, “What aren’t they telling me?” Press releases can have valuable data and information, but they are designed to give you a snapshot of something newsworthy, not to draw out the full picture.

Mistake # 10. Placing all your chips on one sector

Diversify with Exchange Traded Funds so that you can see and capture your gains, with your semi-annual nest egg rebalancing! The former Blue Chip Index has become the Bailout Index, so it is more important that ever that you know what you hold in your ETFs. Mutual funds are too big and too diversified, which makes it impossible to know what you own and to take profits when one segment of the stock market – industry or size or style – has a rapid run-up in gains.

Mistake # 11. Keeping too much stock in your employer’s company

Rule of thumb, according to ERISA guidelines: no more than 10 percent of stock in your own company.

There’s one exception to this rule: if you’re the owner of the company, you may need a dominating percentage of the stock for voting/power reasons. In the early days of Apple Computer, Steve Jobs was booted out of the company he had co-founded.

Mistake # 12. Handing your investments over to a loved one, relative or friend

I’ve spoken with women executives who have commanded billion dollar corporations, and others who have multi-million dollar salaries, who turned over their personal investment portfolios to a husband, in order to make him feel like “more manly.” With men, it’s more likely to be the guy at the country club who convinces his poker partners to come in on a sure shot investment of his. Interview your Certified Financial life partner as if your life depends upon it, because your lifestyle does!

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Source: http://www.granthammond.com

1) Income Taxes
Whenever some one things of taxes they usually think of federal income taxes first. That is because between Federal and State taxes some Americans loose as much as 35% of their paychecks to income taxes.

2) Business Taxes
Also known as corporate taxes, business taxes are direct taxes levied on the profits of businesses. However, expenses that are deemed necessary to the business can often be deducted to lower the amount of profits subject to taxes.

3) Property Taxes
Property taxes are imposed on property by reason of its ownership. They are usually paid on real estate. But can also be paid on personal property, such as boats, automobiles, recreational vehicles, and other business inventories.

4) Payroll Taxes

These are the taxes that must be deducted from wages paid to employees, and the employer usually must match the amounts. Some payroll taxes include federal withholdings, disability insurance, Medicare, and other state withholdings.

5) Inheritance Taxes
The inheritance tax – also known the “death tax” – is a tax that arises from the death of a taxpayer. It is imposed on the transfer of any property or asset transferred as the result of a death.

6) Capital Gains Taxes
In the United States a tax is levied on all income generated from a taxpayer’s capital gains, which are profits from the sale of an asset that was purchased at a lower price. The most common capital gains are created from the sale of stocks, bonds, and property.

7) Excise Taxes
Any tax that is based on the value of the product being taxed is considered an excise tax. They are based on the quantity of the product. Common examples include those levied on gasoline, cigarettes, taxes, and even those on CD-R’s and DVD-R’s that are paid to copyright owners.

Sales Taxes
Consumption taxes – also known as sales taxes – are levied at the point of purchase for specific goods and services. It is usually a percentage determine by the levels of government charging the tax. Due to individual state and local taxes, the exact rate you pay will vary widely by location.

9) Gift Taxes
A gift tax is a one that is levied on the transfer of property by one taxpayer to another while receiving either nothing or something with a less than equal value in return. Selling something at less than it’s full value or making an interest-free or reduced interest loan, may qualify as making a gift.

10) Retirement Taxes
All taxes levied by the government to plan for a taxpayer’s retirement could be considered retirement taxes. In the United States we pay into a social security system that provides income to retired workers from the general fund. Our tax is regressive as we all pay the same rate up to a specific cap. Then all income above the cap is not taxes.

11) Tariffs
An import or export tariff is one that is paid by the movers of any good through a political border. Typically, it is used to “encourage” local businesses and “discourage” the purchase of foreign goods, by increasing the price for the foreign goods.

12) Tolls
Tolls are charged to drivers who cross through designated bridges, tunnels, and even some roads. They usually always paid in fixed amounts each time you drive pass through the restricted area. Tolls are frequently used fund state projects but can also be used for privately funded projects.

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A few days ago, I finally followed through on what I have been meaning to do for a very long time….form an LLC to expand my business of websites/blogs. I have called it ATA Consulting LLC. The reason I have given this name is because ‘Consulting’ is a very broad category and thats why I’m not limited to just websites and blogs.

Below is a 6 step process to building a successful business.

1. Start Smart
2. Plan Ahead
3. Set up Systems
4. Seek out Sales
5. Aim for Growth
6. Leverage Opportunities

1. Start Smart.
Identify a niche. Don’t compete to be the lowest cost provider. Look for what makes your product or service unique and adds a special value for the client and charge for that value. Every business has many facets. Start with what you know and like; start a business that has meaning to you. Keep in mind that we don’t know what the future holds, many of the jobs and businesses of tomorrow don’t exist today. You can create your own success.

Now is the time to dream. To start smart, you should like the idea of the business. The way to earn a good income and build wealth is by serving clients well, making their life better in some way-it’s more than filling a need in the marketplace. To succeed you want to test the idea to make sure your potential clients like the idea too. Test your ideas.

2. Plan Ahead.
People often ask me why bother with a business plan? Look at the lottery as an example. You may get lucky and get the winning ticket, but the odds are against you when you rely on random chance. I’m a risk taker…but not that much, minimize the risk of going into business and maximize your potential for success. Take the time to write a plan of how you get from point A to point B. A plan gives you a clear future focus and increases your chances of success.

The first rule of a start-up is put some of your own money in the business. As the owner you must be willing to capitalize the business. The second rule is put as little of your own money as possible in the business. Prepare your plan and look for funding for your business from multiple sources, which can include a business loan or business line of credit.

Don’t go it alone. Plan ahead now to build your team. Your team may include a CPA and an attorney that you work with as needed. Add a mentor from your industry and get a SCORE mentor to help you plan for success. No one has all the answers. You get more ideas and information by building a success, support team that can help you plan ahead.

3. Set up Systems.
The most basic system every business should have is a good financial system. Ask yourself how am I going to generate enough income to support myself and my family. Begin here. Put together a personal budget, so you know what it costs you to live. Now, you can move on to the business budget and sales planning, so you can see how many sales you need to break even and make a profit. The start-up expense plan, operating budget and your accounting software are vital to your success.

4. Seek out Sales.
The daunting question is how do you go about seeking out your first sale. Recognize that since you don’t have a big ad budget to be seen by everyone, you need to target a niche and get connected in your market community, be it local, regional or national. You need other people selling for you-not employees-goodwill referrals. Get out and talk to as many people as you can. Join organizations that would have clients for your product or service. Become a visible part of your market, and then ask for the sale. You begin the sales process with people that you know. Yes, it’s okay to start with friends and family as your first customers, and then broaden from there.

5. Aim for Growth.
The basic tenant of creating a company is that you own the company. You are not just creating a job for yourself. It’s less risk and less investment to get a job. Building a business is creating a company that is more than the job itself. Think about the future. How large do you want the company to be in terms of sales, net profit and employees? Your answer to each of these questions will influence how you grow. There are varying costs and profits associated with growth. It’s important to make a deliberate choice early about how you want to grow your company.

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6. Leverage Opportunities.
Good luck. Good fortune. Good timing. All play a part in business. As a business owner, be very clear about your core focus for the business and how it serves clients. Your core business is what pays the bills. Then, as an entrepreneur you are about opportunity. When you see a potential opportunity or stroke of luck measure it against your core business focus. Good fortune is great, when it matches your vision for the business. Always consider if a good opportunity is the right fit for your business. If something looks great, but it’s not in sync with your long-term plan and budget, think carefully before committing your company’s resources.

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After reading the book How Come That Idiot’s Rich and I’m Not? I’m totally committed to setting up my own business. One of the requirements for that is to have a business account with someone like Paypal, because its very easy to handle all your online invoicing and payments. Paypal is secure, reliable and most important of all – easy to use.

When you signup for PayPal, you can start accepting credit card payments instantly. As the world’s number one online payment service, PayPal is the fastest way to open your doors to over 230 million member accounts worldwide.

Here’s how to set up a Paypal account for your business.

1. Print out these instructions

2. Click here to Set Up Paypal Business Account

3. Scroll down and click where it says: “sign up today”

4. Choose whether you want a personal, premier or business account

If this account is for your business, you should choose Premier Account or Business Account

Here’s the only difference: a Paypal Business Account allows you to set up the account under your business name. But you need to have a business bank account and wait for your Paypal Business Account to be approved.

If you don’t have a business bank account but you want your Paypal account under your business name, here’s how to get around it: sign up for a Premier Account, but instead of putting your name in the name field, put your business name. For example, if your business name is Acme Consulting, put “Acme” in the “first name” box and “Consulting” in the surname box.

5. Choose your country

6. Click Continue

7. Fill in all your info (see note above about business name)

8. Click Continue

After your account is set up you can pay someone by Paypal, or request payment (send an invoice) just by going to www.paypal.com and logging in to your account. It’s very easy to use PayPal.

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Source: activerain.com

First, let me answer the 2 basic questions about Mortgage Escrow.

What is an escrow?

An escrow is when you include your taxes and insurance with your monthly mortgage payment.

How does Escrow work?

1. Buyer, seller and the Escrow Agent sign the escrow agreement.

2. Buyer deposits money and/or documents in escrow.

3. The Escrow Agent manages the escrow account.

4. The Escrow Agent confirms to the seller that the escrow amount and/or documents have been received in the escrow account.

5. Seller performs the required services.

6. Buyer accepts delivery and proof of acceptance is sent to The Escrow Agent .

7. The Escrow Agent releases the money and/or documents in escrow.

Now here’s my situation. I’m in the process of finalizing my mortgage for buying my first home. (I have to make a decision by the end of this month). I got Good Faith Estimates from a number of lenders and all of them had $2000 – $2500 going towards the escrow account. so I assumed thats how it has to be. But then during a conversation with one mortgage broker, he asked me if I wanted to escrow my taxes and insurance. I then asked him if that will help me get a better rate or if there are any other advantages to an escrow account. He said that if I don’t escrow the lender sometimes charges a quarter point. But I have checked this and most big banks and lenders don’t really care either way. So I negotiated with the broker and he said that he is willing to “eat up” that quarter point.

So that got me thinking. Should you, or should you not, go for an escrow account?

The major advantage of a mortgage escrow is that the lender assumes responsibility for paying your property taxes and homeowners insurance. This is also the major disadvantage. In addition, with an escrow the lender gets to keep the interest on your account.

Many people don’t want to get a big tax bill all at once. They prefer to pay a little bit every month and don’t want the headache of paying it on time. Having said that, there have been cases where the lender failed to pay it on time causing an even bigger headache to the borrower.

So what will I do ? I’m going to pass on the escrow account. For control freaks like me, I like to be in charge of paying my dues on time and not lose any interest on my money. There are 2 big advantages I see by not escrowing. One I pay less at closing, and two, I pay less every month. Of course I’ll get a big tax bill, but I think I can handle that.

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Source: newsoxy.com

I’ll be closing on my home next month and, I think, I have everything under control. But I’m still getting anxious about the whole deal. So, what am I anxious about?

* Buying a house. The biggest investment I have ever made.

* 20% down payment. A very large chunk of my savings is going to vanish from savings account.

* The closing table, where there will be attorneys, Realtor, builder etc. who have done this quite a few times.

So I thought I’ll get some more information about the whole closing process and what really happens at the closing table. It doesn’t matter if you are closing on a  single family home, condo or a townhome. The process is similar.

Who will be present at the home closing ?

You, the buyer, will be present, along with your team, which likely includes your real estate agent and your settlement attorney. If you have an especially amiable and service-oriented mortgage broker, he may be there on your behalf as well, though that is unlikely. On the other side of the table will be the seller(s), the seller’s agent, and possibly an attorney for their team.

When the referee blows the whistle, the ball will be tossed straight up into the air. Generally, the tallest person on your team will want to do the jumping. No, wait! That’s something else. Never mind. How long will this take?

This depends on how smoothly things go. It’s likely to take about one hour for you to sign all the paperwork. (This is another reason that you do not want to go into something like this without some help. If you’ve bought the house without a real estate agent, you definitely want a good settlement attorney to be with you before and during closing.)

If there are surprises (see below) at closing, it will take longer.

What do you need to bring at the closing table?

You’re probably working with an agent, so she will be of help here. You’ll need to have in hand your new home owner’s insurance policy, showing that you have, indeed, insured the house, and a cashiers check. The settlement sheet is a document which lists all of the closing costs and the particulars of your loan.

The Passing of the Baton

The seller is advised not to cancel home owner’s insurance until recordation has occurred, which is to say, the sale of the house has officially been recorded at city hall. This usually takes place within 24 hours of the sale.

The buyer, meanwhile, is advised that he should have his homeowners policy activated immediately (but you already arranged this, didn’t you?) and he “takes possession” upon the completion of closing. What does “take possession” mean? It means the house is yours. It means that, after you’ve signed all these documents, the seller (or someone from the seller’s team) is going to place the keys to the house in your hands.

At this point, the seller (or builder, if it’s a new house) gives you whatever package of information he may have on equipment at the house. This includes things like the instruction booklet for the washing machine; information on how that timer-light above the front door works; how you re-code the automatic garage door opener; how-to manuals for the refrigerator and the food disposal. You get the idea — everything you need to work and service and understand all of the major appliances of the house.

The good news is that an overwhelming majority of closings occur without a problem. However, be sure to take the responsibility to examine the paperwork and examine it well. Ask whomever is handling the closing to explain it to you. You should be as prepared as possible for this transaction. Now is not the time to be shy or be afraid of “looking stupid” by asking a question.

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Source: http://www.educationnews.org

My daughter will be turning 2 in January. So for my wife and I, its time for us to start planning for her college. Should we go for a College 529 plan, an Education IRA or a Regular Investment account ? What should we do?

So I started researching the various college savings options available. I decided to go to the Vanguard website because Vanguard is the most conservative mutual fund company I know of, because as far as saving for college is concerned I dont want to invest too aggressively. So here is what I found.

529 College savings Plan

529 plans enable you to invest for higher education free of federal and, sometimes, state income taxes. States or schools can sponsor a 529 plan. Most are open to residents of all states. Some plans allow you to invest between $200,000 and $300,000 on behalf of one child, so a 529 plan may be your best bet for fully funding a college education.

Advantage
Enjoy investing flexibility, high contribution limits, and tax advantages to save for college and graduate school.

Disadvantage
The money can ONLY be used for college.
And If your kid doesn’t go to college, you may name another eligible family member as beneficiary on the account and use the 529 assets to pay for that person’s education. If no eligible family members can be named beneficiary, then you might have to close the account, paying federal and possibly state income taxes and a 10% federal penalty tax on earnings not used for qualified higher-education expenses.

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Education Savings Account

Advantage
you can invest for any level of a child’s education–primary school, high school, college, or beyond. And you can start investing for that child from birth. The money is taxed at the child’s tax rate, which is typically lower than the parents’ rate.
Although contributions aren’t tax-deductible, your earnings grow tax-free and withdrawals are free from federal income taxes when used for qualified education expenses.

Disadvantage
You can only contribute $2000 a year.

UGMA/UTMA accounts

Advantage
A tax-advantaged way to save for a child’s future, for higher education or any other purpose that benefits the child.
The accounts dont have any contribution limits, though contributions above a certain amount will trigger the federal gift tax.

Disadvantage
When the child turn 18, he/she gains control of the money and they can do anything with the money.

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Regular Investment Account

Advantage
You retain complete control of the account. Select from from a broad lineup of stock, bond, balanced, and short-term investments.

Disadvantage
You do not receive the tax advantages of accounts specifically created for college investing.

So what did we decide ?
As of now, our finances are in order with no credit card debt an we regularly keep a close watch on our savings and spending. Therefore, we went for a regular investment account. We chose the Vanguard STAR fund that is a conservative balanced mutual fund that has consistently given a return of at least 10%.

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According to Bankrate, the 10 things listed below that “DECREASE” the value to your home. Based on my recent purchase of a new construction single-family home, I have added my comments for each of these items.

1. A Pool

Personally, I’m not too fond of having a pool in my backyard, mainly because of the maintenance costs. I do like swimming, but fortunately our community has a pool. Also, when it comes time to sell your home, you have automatically limited your buyer market.

2. No garage or a small garage

Unless you’re living in a condo, a retirement community, or historical or in-town neighborhood most buyers will look for at least a two-car garage. If you don’t have a garage, it’s a real negative. Personally, for a young family of mine having a 2 car garage is a must. I like having the extra storage space too.

3. Garbled Floor Plan

Since we went for a new construction home, we had to choose one of the floor plans that builder was offering. Fortunately, there was also a model home of the floorplan we liked. Mentally, we have already made plans for each room in the house. We liked the Master Suite a lot. Small rooms and bathrooms, an inconvenient floor plan or a layout that requires you to access bedrooms or bathrooms through other rooms will detract value from your home.

4. Outmoded appliances or systems

When a buyer walks into a home, one of the biggest concerns that they have is that the appliances should be in a working condition and should look good too. If you try to open the oven and the door falls off, the buyer is out ta there. We actually chose our own appliances, so no problem there.

5. Stale or overly personal decor

Personally, I don’t like a red color wall. But many of us do like bright colors in our house. That well and good, but when its time to sell, its a good idea to paint your walls with a neutral color, that would surely appeal to more buyers.

6. A bad roof

I don’t understand much about how a house is built, but as a buyer, if my home inspector tells me that the house has a bad roof, that would be scary and I will run away from there and never look back.

7. Bad location

This is an important one. When we were looking for a home, our criteria was an area with good schools for my daughter, shopping close by and quiet and peaceful neighborhood. If our house was anywhere near an airport or an interstate, we would not have considered that location.

8. Poor maintenance

I would put this one under the category of “Curb Appeal”. If I’m looking for a home and when I drive to it, I see some old chipped paint on it, uneven grass on the ground and just overall shabby looking, I would just drive past it. I know these are cosmetic changes, but when I’m buying a home I want the whole package, not just updated appliances in the kitchen.

9. Environmental hazards

This where a home inspection comes in real handy. Your inspector should be able to tell you if you might have a problem with mold, lead or asbestos. Even though, these things can be fixed, I, and many other buyers would not like the sound of that.

10. A laundry list of needed improvements

As a buyer, if you are looking at a house and realize that there is some significant work/improvements that would need to be done before you actually start enjoying your home, that’s a big turn off. You have enough things to worry about like buying new furniture etc. and spending money on basic improvements that should have been done in the first place does not leave a good taste in my mouth.

Image By: PANPOTE

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According to bankrate, the 10 features listed below add a lot of value to your home.

Based on my recent purchase of a new construction single-family home, I have added my comments for each of these features.

1. An updated kitchen

When we visited the model home, we really liked the granite counter tops, new appliances (that got me excited too!), lot of cabinets for storage, and an island in the center of the kitchen. The island is can be used for more counter top space as well as a small eat-in area. For my wife, this was the biggest selling point of the home.

2. Modern bathrooms

This is an important one. The master bathroom must have double vanities. That means, you and your partner each have their own space with a sink to get ready. Modern bathrooms also have a separate jetted bath tub and shower area. Modern light fixtures are a plus.

3. A well-appointed master suite

For me, the master suite was the selling point. A master suite must, at least, have enough space for a king size bed, dresser and 2 night stands. Separate space for a sitting area, tray ceiling, crown molding at to the value.

4. Natural materials

In floor coverings, especially bathrooms or kitchens, look for ceramic tile or wood rather than linoleum. If you have carpet, it should be a good product and well-maintained.

5. Curb appeal

Again very important. When you come home from work, your home’s appearance should be a welcome sight. Nicely trimmed lawn area and uncluttered driveway go a long way in achieving good appeal.

6. A light, airy spacious feel

There should be enough light and cross air ventilation coming into the house. Being of Indian origin, we always consider a home where the front door faces the southwest direction.

7. Good windows

The house should have a lot windows. All windows must be properly insulated. Personally I prefer to have blinds on all the windows. Well-placed skylights are also a good touch to add value.
Unfortunately, I don’t have any in my house.

8. Landscaping

Always have a well manicured lawn. A few plants wont hurt either. We are planning to have our back yard fenced for added privacy. I wouldn’t mind having a swing, but that means less play area for my daughter.

9. Lots of storage

You couldn’t go wrong with an over sized garage, some attic space and plenty of closets. We have a good sized 2 car garage, but we currently just have one car. So more storage space for us.

10. Basement

Having a finished basement adds even more value. Basements add a lot to your resale value. Unfortunately, we don’t have a basement.

If you are in the market for refinancing, be sure to check out your mortgage rate options from multiple lenders in your area.

Image by: Maggie Smith

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OR Do you need both Visa and Mastercard ?

The two leading credit card companies in the world today are the competitors Visa and MasterCard. They both operate along very similar lines. While Visa can claim to have almost a billion cards issued, MasterCard has over twenty five thousand banks issuing its cards and it is difficult to find any difference in the number of locations worldwide that accept the cards, which is now estimated at over twenty million.

In fact, as far as most consumers are concerned, there is no real difference between the two. They are both very widely accepted in over one hundred and fifty countries and it is very rare to find a location that will accept one but not the other.

However, neither Visa nor MasterCard actually issue any credit cards themselves. They are both simply methods of payment. They rely on banks in various countries to issue credit cards that utilise these payment methods. Therefore, the interest rates, rewards, annual fees, and all other charges are issued by your bank and when you pay your bill you are paying it to the bank or institution that issued your card and not Visa or MasterCard.

How Visa and MasterCard make their money is by charging the retailer for using their payment method. So the truth of the matter is that a Visa issued by say the Bank of New York will have very little to do with a Visa issued by other banks and may in fact by more similar to the Bank of New York’s MasterCard.

What this means for the vast majority of customers is that you do not have to overly concern yourself with whether a credit card is MasterCard or Visa. You would be better off concentrating on the interest and other charges on the card, the balance transfer possibilities or their reward scheme. You are very unlikely to ever be effected by the fact that it is one and not the other.

If you prefer, if you are going to have two credit cards, you may decide that you want one of them to be Visa and the other MasterCard, this means that if something drastic were to happen to one company, or if you were in the unlikely position of finding a location that accepts one but not the other, then you would have the option of paying with either.

Some Stats:

• Numbers show 30 million merchants for Visa and 28 million for MasterCard in 2009.
• Visa has a few sporting event exclusives: Olympics, a few NFL teams.
• MasterCard also has greater coverage in higher education because Visa does not allow schools to charge convenience fees for tuition payments with a credit card.

At the end of the day however, much more depends on the bank that gave you the card, than on the type of card it is.

There is always a third option:
And a fourth…

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Source: http://ascmortgage.net

An article on Yahoo has this interesting piece of information about how much should you spend monthly on your mortgage.

• Mortgage lenders have tightened standards recently. But consumers still have the potential to get approved for a bigger home loan than they can afford.
• A general rule of thumb is that no more than 28% of gross monthly income should go toward house-related debt (including taxes and insurance). Besides first mortgages, this includes home-equity loans, which allow people to take out a lump-sum loan against the house, and home-equity lines of credit, which allow people to borrow against the house over time, taking out money when needed.
• A person who makes $5,000 a month before taxes, for example, wouldn’t want the monthly bill for house debt to exceed $1,400.
• Note that the 28% guideline has a caveat: Monthly debt payments for everything — house, credit cards, car loans, student loans, etc. — shouldn’t be above 36% of gross monthly income. So if you spend 28% of your monthly pay on house debt, you have only 8% left for the remainder of your debt payments. In the example of someone who earns $5,000 a month, 8% would come to $400. Many car payments are more than that.
• And those percentages — frequently called debt-to-income ratios — are maximums, not recommendations for healthy living. People who spend 36% of their pay on debt are “teetering on the edge of being financially unstable,” says June Walbert, a financial planner with San Antonio-based USAA, a financial-services company that largely focuses on military families.
• She counsels clients to limit total debt payments to 20% of pretax income, so they have a buffer for surprise expenses.
• One way to keep from getting in too deep is to run a worst-case scenario before taking out any money. Home-equity lines of credit, for instance, often come with variable interest rates, but banks are required to disclose a rate cap in the loan documents. Calculate what the payment would be if you borrowed up to the limit at the highest interest rate.

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