Danger signal 2
You are unable to pay more than your minimum balance on the card debts; this is when it should be obvious that cash problem has started; this is the time when you should leave the credit cards and try to pay off all your outstanding by wise financial management.

Danger signal 3
You find yourself borrowing on one card to pay on another. This is the message that you are entering unmanageable debt so take charge and control all unnecessary expenses right away. Try to pay off the debt of one card and use only one card that also only in acute emergency.

Danger signal 4
You observe that you have more than 5-6 credit cards. Ideally, you should not have or use more than two credit cards. There are many who advocate the use of only one card while if you have more you can keep the rest locked for any emergency. When you have too many operational cards, you can very easily over spend and find yourself in a financial mess.

Danger signal 5
You are finding that you are using your credit more and more for emergency payments and the emergency payments include grocery bills. The moment you include in the emergency payment list ordinary purchases, you should understand that something is seriously.

Danger signal 6
Your credit card payments keep you working overtime if you observe that you do not have sufficient funds to cover your credit card payments that means you are extending your income to your credit card limits this is a definitely a danger signal.

Danger signal 7
You are at limit of all your credit cards. When you find yourself to have topped the limits of your credit cards this obviously shows you that your income is not sufficient to take care of your expenses and or you are spending too much.

Danger signal 8
You are gambling and paying the debts with the credit cards. Never ever pay your gambling debts with the credit cards because this will really create an egg-and-chicken vicious circle from where you will never get out.

8 Danger Signals to foretell you are on the debt road is a post from: Lijiang Lvyou Finance And Money Management Tips

A bad credit rating or credit score can really turn out to be a big problem for many people, preventing them from having the ability to do certain things, such as getting loans, approved credit, etc. It can really end up being a headache if you do not have a high enough credit rating and can put a damper on many things in your life. It can stop you from doing many of the things that you had set out to do for yourself, no matter what those financial decisions may be, so make sure you truly understand just how important it is to settle any old debts that have built up.

Improving your credit score by alleviating some of your debt can really be an exciting time in your life because you will quickly begin realizing just how much your debt relief is going to benefit you from here on out. Getting rid of one debt at a time will be extremely beneficial for you and in just a matter of time you will really be enjoying and reaping the rewards of saving yourself so much money each month that passes you by.

Your credit score being really bad can negatively affect you for many many years down the road, so knowing what to do to prevent this from happening to you is really really important. Making any and all changes that you possibly can is really your best bet and to do this before your debt gets piled up to the extreme is much more beneficial and the results will come along much more efficiently and appropriately down the road.

Debt can be the death of some people because of the enormous amounts of stress that it creates for people who are and have been struggling for far too long now. Finding debt relief as quickly as possible is truly your best bet, there is no doubt about that, so make sure that you took notes throughout this article and I really honestly do hope that it helps you a great deal.

Research debt relief on the internet even more once you have finished reading my article, there is no doubt in my mind that you will have the ability to find new ways that could improve your credit score, which will be very helpful to you in the near future.

Improve Your Credit Score By Alleviating Some Of Your Debt-Important Information That Could Help You is a post from: Lijiang Lvyou Finance And Money Management Tips

You can live anywhere in the world and trade stocks and investments in the companies that are involved in the Forex markets. There are no limitations to the money you can make, or the money you can lose. The Forex markets can be tapped into online, over the phone or by contacting a broker in person. If you are interested in making money, you can do it on the Forex market, without having to have employees, or a broker to do this. You can get involved in learning about the investments in the Forex markets, and take on the responsibility for your own money, and making your own money. Many are starting their own businesses using their education and experience on the Forex market to make money.

The Forex market is one that is world wide, so there is sure to be something of interest to just about anyone that wants to expand their investments and expand their learning about money in the world wide markets. There are many experts in the Forex markets, and using the Forex trading system that you feel most comfortable with, you can be a Forex market expert as well.

There are no go betweens, such as large banks or such when you are involved in the Forex market. There are no need for fees and transaction fees when you do your own trading on the Forex markets. You can learn the Forex trading system that best suits your learning needs, and follow it to chart companies, chart growths, and to invest in companies that have a solid future. There are companies and markets through out the world that you can invest with, to increase your wealth and your investment portfolio.

A few different regions of trading exist in the Forex markets, with sessions in Tokyo, Asia Pacific, and in the Americas. Trading is always non-stop, and moving from London to New York, to Tokyo and so on again and again. You can invest in the US dollar, the Euro, the Japanese Yen, or in Swiss Franc among others.
You can find more information on http://www.broker-trading-system.com/ about Forex trading systems.

About Forex trading systems is a post from: Lijiang Lvyou Finance And Money Management Tips

So just go ahead and admit it. You are hooked. The 0% APR credit cards ad that you just saw in the brochure attached in the morning newspaper has piqued your interest. But seriously … are these 0% interest credit cards for real?

The truth is they are and they are not. There are cards that live up to the promise of a 0% APR credit card, but the truth is that this 0% interest does not last long. It might just be an initial gimmick to get you to subscribe to the card offer and once youre a cardholder, you have the 0% APR for just a limited time (3 months, 6 months, or if youre very lucky 12 months) before they start charging you a higher rate of interest. The credit card game is truly an interesting one to watch, but not if you are the suffering player. Read on to know what you can do to make sure you are not the sufferer.

Understanding 0% APR Credit Cards

Yes, 0% APR credit cards do, in fact, hold a lot of enticement. But here is what you must do when you find a 0% APR card that has gotten your attention. Pay attention to the following:

1) How long the no-interest period will last?
2) Can you transfer other balances at the 0% rate?
3) What will the APR be after the introductory period ends?

When you are done assessing these factors, you can properly compare all of the interest credit card options available.

The Luxuries of Owning a 0% APR Credit Card

If youve already accumulated a huge debt on your previous credit cards, theres good news for you. A 0% APR credit card can benefit consumers bad credit histories in a big way, if (and that’s a big if) they can get approved for the card offer itself. That being said, a 0% APR credit offer allows cardholders to drastically cut down the interest being incurred on existing debt while it can also help consolidate debts on other outstanding high APR card balances. There are typically balance transfer fees associated with this type of consolidation, but if your credit is sufficient enough, you might be able to avoid fees altogether.

Pitfalls of 0 Interest Credit Cards

1) Most 0% interest credit cards offer 0% interest or no interest only for a limited amount of time, which varies between 6 to 12 months.

2) If youre thinking of transferring balances from high interest credit cards, some of these cards might not even allow you to do so during the introductory 0% offer period.

3) Some 0% interest credit cards might also charge very high balance transfer fees.

4) Some of these cards also carry very high penalties for late payments and
automatically switch you to a much higher variable APR after incurring even a single late payment.

5) Some 0% APR credit cards charge a very high interest rate after the introductory (read honeymoon) period.

Yes, the picture is definitely not all rosy, even though you can most definitely save money on interest charges by using 0% interest credit cards judiciously. If cardholders fail to pay off their card balances prior to the introductory offer expiration, if they fail to make payments on time, or generally disregard their credit responsibilities, these credit cards can end up costing consumers significantly more than most will anticipate.

0% Interest Credit Cards – Truth or Fiction? is a post from: Lijiang Lvyou Finance And Money Management Tips

It is not that the issuer is out to scam you. But you still need to look close. You never know what you are in for unless you read all the terms and conditions associated with the card.

0% Doesn’t Mean 0% Across the Board

While there are some legit 0% credit cards out there you need to look at the fine print before you simply assume that you can buy everything with no interest. The 0% is not a blank check that you cash anywhere. If applies to some types of transactions. This isn’t to say that you shouldn’t take advantage; you just need to be an aware consumer and make sure that you know how the 0% works.

If you have some credit card balances that you would like to transfer than you may want to look for a 0% credit card. There are many credit cards out there that offer 0% balance transfers. The more the transfer, the higher the saving. Many people use these cards to do away with those high interest credit cards so that they can actually start making a dent in the amount of money that they owe instead of just paying off the interest each month.

Many 0% credit cards have 0% interest rate offers on specified purchases. These may be purchases at specific stores or for specific products, but depending on what you purchase these credit card offers really can save you a lot of money. You’ll need to be sure to read all of the fine print on these cards to be sure that it is something that will save you as much money as you would hope.

Then there are the cards that use 0% as the way to ensnare you. Often times this 0% is good for the first six months or a year that you have a card. This is a nice way to consolidate debt, make big purchases, pay for car or house repairs, or just buy things that you have been putting off because you didn’t want to pay interest. One more interesting dimension of credit cards relates to rewards and cash back.

Before you choose any one of the 0% credit cards that you come across you should read through all of the features. The prudent buyer wants to know the interest rate, not just on day one but also on later days. Do you need to pay off all of the items that you bought during the 0% time? Whether you make money or lose money will depend on how smartly you use the card.

0% Credit Cards: Are They The Real Deal? is a post from: Lijiang Lvyou Finance And Money Management Tips

In contrast to the similar financial benefits both Monaco and Andorra residents enjoy, the two small countries have quite different climates.

Monaco has good all year round weather and is located next to the French Riveria, while Andorra is in the Pyrenees and between early December and late April attracts nearly ten million tourists for ski holidays. Monaco has year round tourists, peaking twice a year in May for the Grand Prix, and September for the Yacht Show.

Neither Andorra or Monaco have their own airports Nice airport has a helicopter link, a ten minute ride direct to Monaco, Andorra is not so fortunate and the nearest airport is Barcelona, a three hour drive away from the principality.

Both countries have opted to stay out of the EU, preserving their ability to maintain a no income tax policy.

The biggest difference is the entry price for becoming a resident which entails buying or renting a house or apartment.

One bedroom apartments in Monaco start at 800,000 Euros, but in Andorra the same size apartment starts at less than a third of the price at 250,000 Euros. And while a house in Monaco is a rarity, there is a good choice of houses for sale in Andorra, with prices starting at under a million Euros.

Rising Prices

Given Andorras property price advantage for would-be residents choosing between Europes primary tax havens, it has come as a surprise to many that the closing costs for buying a property in Andorra has not only been less than half that of Monaco, but also less than buying a property in many other mainland European countries at around four and a half per cent.

But Andorra has just raised property closing costs by introducing a three and a half per cent sale of goods and services tax on property purchases from January 1, 2006 – bringing the tax haven more in line with neighbouring France and Spain.

Demand for property in Andorra and Monaco is unlikely to be affected by the recent increases though, according to European tax haven specialists Tribune Properties.

Andorra and Monaco have historically seen an increase in property activity and residency applications when taxes are increasing elsewhere. The new German government has recently increased the top rate of income tax and the United Kingdom has seen an increase in the number of indirect taxes, making the zero per cent personal income tax both Andorra and Monaco offer an attractive preposition to high income earners.

Andorras property inflation has been over ten per cent annually for the last three years, and when the 2005 figures are released we would expect it to be four years in a row, with no sign of a levelling off of demand for the year ahead.

With Andorra and Monacos high speed cable and broadband internet access more and more company owners are moving their residence to low and no tax countries and running their companies from a distance geographically, while being able to share information with their head office in real time.

As well as buying a property in Andorra or Monaco, both countries require residency applicants to establish a local bank account and deposit around 50,000 Euros (Andorra) or 100,000 Euros (Monaco), take out private health insurance, and to live there for six months of the year.

Andorra Raises 2006 Entry Price is a post from: Lijiang Lvyou Finance And Money Management Tips

But isnt it too risky?

The greatest risk in any investment is the risk of overpaying. So, the real question is: what is Overstock worth? I think its worth at least $1.5 billion. With Overstocks market cap currently sitting around $500 million, my valuation certainly looks far fetched. But, theres only one way to know for sure. Lets take apart my argument piece by piece, and see if any of my assumptions are unreasonable.

First Assumption: Over the next five years, Overstock will neither generate truly free cash flow nor consume cash. In other words, its free cash flow margin will average 0%. Cash generation in some years will exactly offset cash consumption in other years. Obviously, this assumption is unreasonable, because there is almost no chance the cash flows will exactly offset.

Thats not a problem if it turns out Overstock does generate some free cash flow over the next five years. In that case, my assumption simply errs on the side of caution. If, however, it turns out Overstock actually consumes cash over the next five years, there is a problem possibly a very big problem. So, which scenario is more likely?

Overstocks revenues are growing quickly. Gross margins look solid at 13.3% in 2004 and 14.9% over the last twelve months. Overstocks unprofitability is the result of its selling, general, and administrative expenses (SG&A) which have been growing exponentially. Will these expenses continue to grow? Yes, but not as fast as revenues. Over the last twelve months, Overstocks spending on cap ex has been 5.6% of sales. That number is an aberration. In the long run, spending on cap ex should not exceed 3% of sales. Considering the business Overstock is in and the expected sales growth, the company will, more likely than not, generate some free cash flow over the next five years. Therefore, the assumption that Overstock will be cash flow neutral over the next five years is not overly optimistic.

Second Assumption: Over the next five years, Overstocks sales will grow by 15% annually. Is this an unreasonable assumption? Again, I dont think it is. Very few industries are expected to grow as fast as eCommerce. Overstocks revenue growth in 2003 and 2004 was over 100%. In the past year, that growth has slowed. However, it is still closer to 50% than it is to 15%. Overstock isnt in a cyclical business. So, there is no reason to believe current sales are abnormally high.

Also, all that spending on advertising is increasing consumers awareness of Overstock. A review of Overstocks traffic data shows it has not only been gaining more visitors; it has also been climbing the ranks of the most popular web sites. While it is a long, long way from the Amazons, Yahoos, and eBays of the world (and will never reach those heights) Overstock is becoming a well known internet destination. This fact was most clearly evident in the weeks leading up to Christmas. Shoppers who visited Overstock during the holiday season obviously know it exists, and may very well return at some other point in the year. Analysts are predicting very high growth rates for Overstock; however, they are also recommending you sell the stock. I dont put any weight in their estimates. But, for the other reasons given, I believe the assumption that Overstock will grow sales at 15% a year for the next five years is not unreasonable.

Third Assumption: Six to ten years from today, Overstock will have a free cash flow margin of 3%. Ten years from today, Overstocks free cash flow margin will rise to 4% and remain at that level. Now, of all the assumptions Ive made, this one is the most questionable. Sure, Amazon has that kind of free cash flow margin, but Overstock isnt Amazon, and it never will be Amazon. Overstocks gross margins are less than Amazons. In fact, Overstocks gross margins are less than Wal Marts. However, Overstocks fixed costs will eat up a much smaller portion of its sales than is the case over at Wal – Mart.

If you compare Overstock to other online retailers, you will see that if Overstock does experience strong sales growth, a 3% free cash flow margin six years from now is not unreasonable. I assumed Overstocks sustainable free cash flow margin will be 4%. Theres a case to be made that 4% is too high. I wont make that case, because I dont believe in it. Remember, that 4% number comes ten years out. That gives Overstock plenty of time to grow sales and thus reduce SG&A as a percentage of sales.

Fourth Assumption: Six to ten years from today, Overstock will be growing sales by 12% a year; eleven to fifteen years from today, Overstock will be growing sales by 8% a year; thereafter, Overstock will grow sales by 4% a year. Lets see what this really means. According to these assumptions, Overstocks sales will be as follows:

Today: $707 million

2011: $1.59 billion

2016: $2.71 billion

2021: $3.83 billion

2026: $4.66 billion

2031: $5.67 billion

2036: $6.90 billion

Seven billion dollars is not an unreasonable target if you have thirty years to achieve it. To put that figure in perspective, Amazon.com currently has sales of about $8 billion. So, even after thirty years, these assumptions dont lead to Overstock reaching the same size as todays Amazon. Dont forget these numbers assume some inflation. For instance, if inflation averages 3% a year over the next thirty years, Overstocks projected $6.90 billion in sales only translates to $2.84 billion in todays dollars. So, these assumptions only lead to a fourfold increase in Overstocks real sales over a period of thirty years. I think thats pretty reasonable.

If you take these four assumptions together, you get a value of $1.5 billion for Overstock. Today, Mr. Market is offering it for $500 million thats why Im writing about an unprofitable internet company.

An Analysis Of Overstock.com (OSTK) is a post from: Lijiang Lvyou Finance And Money Management Tips

Making the wrong decision in buying a home can have devastating and long lasting effects, while making a wise decision in home buying can greatly enhance the overall value of the investment. It is necessary to learn all you can about the world of home buying and mortgages before setting out to purchase the home of your dreams.

While there are plenty of web sites designed to help first time homeowners learn all they can, most financial experts say that there is no substitute for the good old one-on-one learning. Fortunately, most mortgage lenders, home inspectors and real estate agents will be able to provide this kind of one-on-one learning.

When buying a home it is often best to use a systematic approach as this is often the best way to be sure that all decisions are based on information and reason, not on impulse or emotion. Buying a home can be an emotional process, nevertheless it is imperative to keep your emotions under control and not let them cloud your judgment.

There are five basic ground rules when it comes to buying a home and shopping smart, and they are:

#1 Get your financing before you get your home

There are few things in life as disappointing as losing out on the home of your dreams due to not being able to secure funding. While the desire to get out there are search for that great home is understandable, it is vital to line up the financing you will need before you start shopping for a home.

Getting the financing ahead of time has a number of important advantages, including knowing how much you can buy and gaining more respect from the listing agents. By knowing how much home you can afford before you shop you will avoid wasting your time looking at unaffordable properties, and the listing agent will be more than willing to show you the homes in your price range.

It is also important to take a good look at the various types of mortgage on the market before getting started in the home buying process. These days, mortgages come in far more choices than the typical 15 or 30 year. For that reason, potential home buyers need to understand how each type of mortgage works, and to gauge which mortgage is the best choice for their needs.

#2 Look at the community, not just the home

It is a good idea to look at the entire community, instead of focusing on a single home. This can be a particularly important thing to consider for those moving to a new metropolitan area, as these buyers will be unfamiliar with the local climate and lifestyle. It is crucial to determine the areas of town that are most desirable, and to consider things like distance from work and local shopping opportunities.

We have all heard that location is the key consideration when it comes to real estate, and that is certainly the case. Buying a house in the wrong area can be a big mistake, and it is important to choose the location as well as the home. Potential buyers can learn a great deal about the nature of the various neighborhoods simply by driving around town, as well as by talking to other residents.

#3 Be fair with your first offer

Trying to lowball a seller on the first offer can backfire, as can paying too much. It is important to carefully evaluate the local market, and to compare the asking price of the home with what similar houses in the neighborhood have sold for.

Comparing the sales of comparable homes, what are known as “comps” in the industry, is one of the best ways to determine what is fair, and to make sure that you neither overpay or underbid on the property.

#4 Always get a home inspection

Always investigate the home for any possible defects before making an offer. Compared to the cost of the average home, the price of a quality home inspection is virtually negligible. Hence, get a good home inspection done before you buy.

To find the best home inspector, it is a good idea to seek out word of mouth referrals as many of the best home inspectors rely on word of mouth advertising.

#5 Do not alienate the sellers of the home

Many real estate deals have fallen apart due to the personal animosity of the buyer and the seller. It is important to avoid alienating the seller of the home during the process, and to avoid nitpicking every little detail during the sale.

Keeping the good will of the seller will help the transaction go smoothly, and it will provide the best environment for seller and buyer alike.

5 Ground Rules for Home Buying Success is a post from: Lijiang Lvyou Finance And Money Management Tips

A housing market that is not growing quickly turns into a buyers market. People will have a number of houses to choose from which will block any increasing value for current home owners. To most home owners this will not be a problem because they have conventional fixed-rate mortgages and only need to wait until the market improves. People who have unconventional 5-year arms and interest only loans may be seriously hurt; especially if interest rates rise.

I think one of the principal risks is whether or not home prices decline and the impact that that will have in terms of influencing the savings rate and personal consumption growth as we have already seen in the U.K. and Australia said David Rosenberg a U.S. economist at Merrill Lynch (Wolk, 2005).

A bigger problem is peoples personal savings rates. Because debt is so easy today and most families are at a maximum borrowing limit many people who will see a jump in their interest payments may begin to default. This default raises the interest rate even further due to increased risks associated with lending money. In the end many people will not have money to spend or save which could have serious consequences for the economy as a whole.

The best measure to avoid such pit falls is to put a larger sum down on your house during purchase which gives you a cushion to work with incase you need to sell your house quickly. The second measure is to avoid all credit card balances, home equity loans and charge cards. Finally, only engage in fixed-rate mortgages.

2006 Economy: How to Avoid Overextending Yourself is a post from: Lijiang Lvyou Finance And Money Management Tips

A mutual fund is an investment intermediary by which people can pool their money and invest it according to a predetermined objective.

Each investor of the mutual fund gets a share of the pool proportionate to the initial investment that he makes. The capital of the mutual fund is divided into shares or units and investors get a number of units proportionate to their investment.

The investment objective of the mutual fund is always decided beforehand. Mutual funds invest in bonds, stocks, money-market instruments, real estate, commodities or other investments or many times a combination of any of these.

The details regarding the funds policies, objectives, charges, services etc are all available in the funds prospectus and every investor should go through the prospectus before investing in a mutual fund.

The investment decisions for the pool capital are made by a fund manager (or managers). The fund manager decides what securities are to be bought and in what quantity.

The value of units changes with change in aggregate value of the investments made by the mutual fund.

The value of each share or unit of the mutual fund is called NAV (Net Asset Value).

Different funds have different risk reward profile. A mutual fund that invests in stocks is a greater risk investment than a mutual fund that invests in government bonds. The value of stocks can go down resulting in a loss for the investor, but money invested in bonds is safe (unless the Government defaults which is rare.) At the same time the greater risk in stocks also presents an opportunity for higher returns. Stocks can go up to any limit, but returns from government bonds are limited to the interest rate offered by the government.

History of Mutual Funds:

The first pooling of money for investments was done in 1774. After the 1772-1773 financial crisis, a Dutch merchant Adriaan van Ketwich invited investors to come together to form an investment trust. The goal of the trust was to lower risks involved in investing by providing diversification to the small investors. The funds invested in various European countries such as Austria, Denmark and Spain. The investments were mainly in bonds and equity formed a small portion. The trust was names Eendragt Maakt Magt, which meant Unity Creates Strength.

The fund had many features that attracted investors:

- It has an embedded lottery.
- There was an assured 4% dividend, which was slightly less than the average rates prevalent at that time. Thus the interest income exceeded the required payouts and the difference was converted to a cash reserve.
- The cash reserve was utilized to retire a few shares annually at 10% premium and hence the remaining shares earned a higher interest. Thus the cash reserve kept increasing over time further accelerating share redemption.
- The trust was to be dissolved at the end of 25 years and the capital was to be divided among the remaining investors.

However a war with England led to many bonds defaulting. Due to the decrease in investment income, share redemption was suspended in 1782 and later the interest payments were lowered too. The fund was no longer attractive for investors and faded away.

After evolving in Europe for a few years, the idea of mutual funds reached the US at the end if nineteenth century. In the year 1893, the first closed-end fund was formed. It was named the The Boston Personal Property Trust.

The Alexander Fund in Philadelphia was the first step towards open-end funds. It was established in 1907 and had new issues every six months. Investors were allowed to make redemptions.

The first true open-end fund was the Massachusetts Investors Trust of Boston. Formed in the year 1924, it went public in 1928. 1928 also saw the emergence of first balanced fund The Wellington Fund that invested in both stocks and bonds.

The concept of Index based funds was given by William Fouse and John McQuown of the Wells Fargo Bank in 1971. Based on their concept, John Bogle launched the first retail Index Fund in 1976. It was called the First Index Investment Trust. It is now known as the Vanguard 500 Index Fund. It crossed 100 billion dollars in assets in November 2000 and became the Worlds largest fund.

Today mutual funds have come a long way. Nearly one in two households in the US invests in mutual funds. The popularity of mutual funds is also soaring in developing economies like India. They have become the preferred investment route for many investors, who value the unique combination of diversification, low costs and simplicity provided by the funds.

Mutual Funds – An Introduction and Brief History is a post from: Lijiang Lvyou Finance And Money Management Tips