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How to Make More Money: Stop Watching TV!

2012-02-14T08:19:00.000+01:00

If you are like most people, you probably have a desire or a strong need to generate more income but you just don’t know where to start or how you will find the time in with juggling all of your responsibilities. The question is always “how to make more money?”

You need to ask yourself, what are you spending time on?
Have you seriously thought about it? One of the biggest time killers is that black box that sits in your living room, bedroom, kitchen or den. Know what I am referring to? Yep, it’s your super sleek, shiny big flat screen TV! You are proud of your big black box, you carefully wipe it down with all the rest of your possessions, and it may even be the “ooh and ahh” focal point of your home when entertaining. Heck, you probably spent a pretty penny on it, so why not get your money’s worth out of it right? And you know what – there is nothing wrong with it. The question you may need to ask yourself is this: how many hours a day do you find yourself zoning out in front of the television? Is it only a couple of hours, or is it several hours in a day? Do you use your television as a way to escape the things that aren’t working for you in your life? If you do, you are not alone. Most people nowadays use the television as a way to entertain themselves, as a babysitter, and as a way to escape from life’s problems.

According to statistics, the average time a person spends watching television in the United States is twenty eight hours a week.
Wow! Those hours add up to a part time job! It is a little alarming to realize just how much time is wasted on TV. Would you like to be a lot more productive with your time and make more money in the process? If the answer is yes, you may be thinking “how can I make more money?” Stop watching so much television! Just think if you used those twenty eight hours differently. The possibilities are endless and you can even add additional income for you and your family!

You might be able to figure out how to make more money if you stop watching so much TV!

So what are the different ways that you can use all this new found time to generate more income?
For starters sit down with a pen and paper and figure out just what it is that interests you. What are you passionate about? What have you always wanted to try but just haven’t had the time? Do you enjoy writing or journalism? What about sewing or knitting? Do you have a passion for design? Are you a great cook? Why not come up with your own signature brand of homemade jam? You can use your skills and maybe even make a lot of money in the process. Have you thought of starting a side business? You could try your hand at consulting, or a blog, even Etsy. Are you musically inclined? You could teach music lessons from your home. Are you an expert in skin care and make-up? You could teach other women how to properly take care of their skin as well as teaching them how to properly apply their make-up. What about upgrading your education? Take some classes or go back to school full time in a career field that interests you. This will increase your level of knowledge and education and you will become a lot more marketable within your field.
If you are completely stuck about what to do, then some research on the Internet is a click away then you can discover what is in high demand —what do people want to buy? Then sit down and think of a way that you can produce what is in demand. You may just come up with the next great invention and become very successful!

These are just a few ideas on how you can increase your income level simply by just cutting down the number of hours you spend in front of your television. Who knows – you may just happen to find that pot of gold!

Credits:freefrombroke.com

2012-02-08T08:04:00.000+01:00

25 Traits Of The Not So Well To Do

Who hasn’t complained about money from time to time? I’ve had my share of gripes over the years for sure! Some people follow up their gripes by doing something about it. They save and work hard so they can have a better life later on. They become the well to do.

Others are the not so well to do’s. They sacrifice their futures to live like kings and queens today, always with the latest “stuff” but at the same time complaining about money.

I’ve observed, over the years, that the not so well to do’s have some traits in common. The following list are my observations. These items aren’t bad per se, but when you see a good number of these traits in a person there’s a good chance they too are one of the not so well to do (read: poor)!

25 Traits Of The Not So Well To Do:

1) Big flat screen TV

I’d love to have one but I know we can use the money elsewhere right now. But I’ve seen a lot of paycheck to paycheck households with a flat-screen TV. They are the wave of the future but these were bought to have a cool tv not because tube TV’s were no longer available.

2) Premium cable channels

Who doesn’t love the shows on HBO or Showtime? But the the ones who are most complaining about money tend to not only have one premium cable channel, they tend to have them all! When you mention that it’s expensive they insist that it’s cheaper because of a package. They might also have some sort of DVR to record all of the channels too. Sorry, I can’t see spending over $100 a month to sit in front of the TV that much (thought there was a time that I did but I was also in credit card debt once too).

3) Eating out often

The not so well to do can’t get ahead because so much of their paychecks go to eating out often. I’m not against a good meal but these people rely on other to cook for them rather than prepare food for themselves.

4) Leasing a car

A car lease can be useful but the not so well to do’s are perpetually leasing, enticed by the lower monthly payment. Over time though a bought car would have saved them a whole lot!

5) Buying a new car every few years

Maybe worse than the car leasers are those who insist on buying a car every few years. Oh, the horror of not having an up to date vehicle that you take care of for the long haul. You must have something new to show off.

6) TV in every room (with cable)

The not so well to do’s are so consumed with their TV shows that they have one in every room lest they miss something on TV! Every bedroom and kid has one too! There might even be a small one in the kitchen. And to add to the expense they probably all have full premium cable channels. I love TV but come on!

7) Latest cell phones

The not so well to do’s always have the latest cell phones. It’s a miracle if their cell phones last for the 2-year contract. These are people where you run into them every few months and somehow they have a new phone. They’ll insist that it didn’t cost them anything but we know better.

8 ) Eat poorly

This goes hand in hand with eating out. The NSWTD’s tend to eat like crap. Soda is a staple as are fried foods and fast food in general.

9) Overweight/No Exercise

When you eat out all the time and don’t eat well what’s going to happen? Yeah, you’re gonna put on a couple of pounds. Or more! These people scoff at exercise and moan that they don’t have time and it’s too expensive. Of course it is – you’re spending too much time and money on your TV’s and shows!

10) Lots of new clothes

Oh, the not so well to do’s have to have the latest styles or the biggest name brands. And in excess too! A few pairs of shoes or sneakers? Yeah, that would be optimistic. More like enough shoes so that none of them ever have a chance of wearing out.

11) Tons of gifts for the holidays when you can’t afford it

Have you heard this story? Person complains that they are up to their necks in credit card debt because they had to buy everyone gifts for the holidays. Not just immediate family but all sorts of extended family too. Uncle Joe’s wife’s sister Mary’s kid needed to get that new X-Box game because you promised it to him. Wonder why he likes it when you come over for the holidays?

12) New computer every couple of years

Man, the not so well to do’s go through computers like my two year old goes through diapers! There’s always some reason they needed a new one. And no, these people don’t need their computer for work in any way.

13) Don’t take care of their stuff

These folks not only have lots of stuff but they don’t take care of it either. Rather than take care of their stuff they let it fall into disarray. Even if there’s something small that can be fixed they’d rather just go buy another then go through the trouble of fixing it. Yeah, here’s one reason they go through so many cars, cell phones, and computers!

14) Tons of gadgets

Always with the newest gadgets the not so well to do’s have (that was a Yoda sentence, huh?). Besides cell phones and such they also have whatever is the newest thing, paying full price for being the first to have it.

15) Doesn’t own a home

Nothing wrong with renting but I find that the not so well to do’s more often than not rent. And they move pretty often too. I guess their apartments aren’t ever big enough for all of their stuff!

16) No online high yield savings accounts

No ING Direct Savings for these people. For whatever reason they don’t trust online banking, or so they claim. Yet they seem to be able to use their computers to shop online without trust issues, hmm.

17) Doesn’t budget

No budget what-so-ever! “Budgets? We don’t need no stinking budgets!” Spend and we’ll figure it out later.

18) Couldn’t tell you their monthly expenses

The NSWTD’s can’t keep track of their expenses. There’s so many to keep track of too! Think a budget might help? They also have a tendency to miss payments on bills making the cost of their expenses even greater.

19) Doesn’t share finances with their spouse

There’s a tendency that one spouse takes care of all the finances while the other one has no clue. Scary.

20) Hates job but won’t do anything about it

Do these people bitch about their jobs! But ask them why they won’t leave or look for another one and they’ll give you a litany of excuses.

21) Little or no college education

I don’t want to rag on people who don’t like school. It’s not for everyone and not everyone needs it. But it seems a lot of the not so well to do’s have little or no college education. Just saying.

22) No financial priorities

These are the people that tell you they could never save a down payment for a house but then you see all of the gadgets and new items they have. Yeah, they could save up they just don’t make it a priority.

23) Quick to pick up tab and tip

It’s great going out with these people because they are quick to pick up the tab and/or leave a ridiculous tip. It’s like they are trying to prove they have a lot so they become over generous. Hey, I’ll pay my share and you don’t have to prove anything to me!

24) They don’t realize their situation

For all of the complaining about money they do, the not so well to do’s don’t realize why they are cash-strapped. When you try to point out how they spend or how expensive some of their habits are they say it’s nonsense.

25) No personal responsibility

Someone or something is always out to get them and causes them to be broke. The IRS hates them. Their bosses won’t promote them. Their family takes their money. There’s always some outside influence that causes them to not have money. It rare that they blame themselves for their situation.

The traits I listed aren’t bad in of themselves. Hey, if I could always have a new car and the latest cell phone and eat out all the time at the nicest restaurants then that would be great. But I can’t, and these people can’t either. The not so well to do’s over-extend themselves and hold themselves back. They try to live up to some imaginary ideal that is impossible for them to keep up with. Some of it is keeping up with the Jones’. Some of it is not wanting to know their limitations. Whatever it is it keeps them back and they will always be struggling unless they change their ways. They are the not so well to do and will remain that way unless they change.

If you are reading this and these traits resemble you then take a good hard look at your spending habits and ask yourself if there’s any way you could make a positive change!

What traits have you noticed about the not so well to do’s?

Credits: http://freefrombroke.com

Facebook billionaire's tax bill: Zero?

2012-02-04T08:03:00.000+01:00

With a salary of only $1, founder Mark Zuckerberg may not owe Uncle Sam anything. And there are strategies that could keep him from ever paying income tax again.

Next year Mark Zuckerberg’s base salary will receive a dramatic pay cut -- going from a base salary of $600,000 to just $1.

Which raises the question: Will he ever pay taxes again?

Zuckerberg’s salary cut is similar to moves by other tech titans. Google’s Eric Schmidt and Larry Page are paid annual salaries of just $1 apiece. Steve Jobs took just $1 in annual salary from 1997 until his death last year. Other members of the 1%/$1 club include Oracle’s Larry Ellison and Hewlett-Packard’s Meg Whitman.

Zuckerberg was paid a base salary of $500,000 in 2011 and is set to be paid a base of $600,000 this year. He got a cash bonus of $250,000 for the first half of 2011 and will likely receive a similar bonus for the second half.

Interestingly, he was alone among the top executives at Facebook who got no stock awards for 2011. The board -- which is controlled by Zuckerberg himself -- decided that he had enough stock to align his interests with the other shareholders, at 28.2% of the company.

Zuckerberg’s pay cut could reduce his income tax burden to nothing.

It’s possible that he might even be eligible for certain types of government aid for those with low incomes -- although it’s unlikely that he would seek to collect it. (Post continues below.)
In order to reduce his tax burden to zero, Zuckerberg would have to forego any future cash bonuses or additional stock awards. He would also have to stop employing certain Facebook services for personal use. Last year, for example, he had imputed income from the use of aircraft for personal use of about $692,679. He also received $90,850 in estate and financial planning from Facebook.

Can Zuckerberg really live without income?

He almost certainly can. There’s no evidence that he has an exceptionally expensive lifestyle. His biggest annual expense is probably all that flying around. The income he has already received and been paid will go a long way.

Of course, his past income will not really be enough to see him through all of his expenses for his entire life. For those he will need a line of credit, preferably one with a tax advantage, and income that can be earned tax-free.

People sometimes talk about the rich "living off the interest" of their wealth. But that’s not a tax-efficient way to live if you are really, really wealthy. It’s better to live off debt and muni bonds.

The best thing for Zuckerberg would be a home equity line of credit -- perhaps multiple home equity lines. By borrowing against the value of real estate he owns, the money he receives from the HELOC is debt rather than income, which means it isn’t taxed. Even better, the interest he pays on the HELOC can be used to offset other income he may earn.

Zuckerberg will also be able to access credit secured by his Facebook holdings -- which will amount to billions of dollars. These lines of credit will not be tax-advantaged -- no deduction for interest payments -- but they will supply him with spending money that will not be taxed.

When you have the net worth of Zuckerberg, you can live for a very, very long time on tax-free debt that you can use as income. Let’s say that Zuckerberg needs $2 million of spending power per year and lives an additional 60 years. That’s $120 million of spending. If he gets an interest rate of 4% and just rolls it over as new debt, he’ll eventually accumulate around $520,919,997. Some of that interest, of course, may be deductible against other income.

The might seem like a lot of debt. But for Zuckerberg -- who will likely be worth around $25 billion after the Facebook IPO -- it’s a drop in the bucket. What’s more, if Facebook continues to grow, Zuckerberg’s worth will grow along with his debt. Thus, his debt burden will be negligible compared with his net worth. The unimaginably rich really are different from the rest of us.

Zuckerberg could also use the money he has earned, some from his HELOC and some from other loans, to purchase income-producing, tax-exempt municipal bonds. The interest on the HELOC would be tax deductible -- producing a double tax advantage.

The interest on the other loans would not be -- but the income from coupon payments from the muni debt would be. He could even use the income from the munis to pay some of his interest expense, which would substantially reduce the lifetime accumulation of debt.

The best way for Zuckerberg to meet large expenses -- for instance, if he wants to buy an island in the Caribbean -- would be to cash out some of his Facebook shares. He would pay only 15% in capital gains taxes on these.

Perhaps most bizarre, Zuckerberg might be eligible for an Earned Income Tax Credit if he keeps his personal income under $13,000. To be honest, that might be hard to do since a guy like Zuckerberg can produce that income by taking a company car home at night. And, in any case, it’s unlikely that Zuckerberg would find it worth the time to even file for an EITC that maxes out at just a few hundred dollars.

To be clear, I have no idea what kind of plans Zuckerberg has for his future income and taxes. He may not want to accumulate debt for his entire life. Perhaps he has plans to become a big spender and will need to derive income beyond what he can get from muni bonds. But it’s very likely that at least some of the $90,850 worth of financial advice Zuckerberg received went to minimizing tax exposure.

Story from CNBC.com.

Creating Wealth With What You Already Have

2012-01-23T21:18:00.000+01:00

It is a known truth, and emphasized by our current economy, that people have a hard time saving money. Most of the time, most people spend all of their money. They get accustomed to spending a certian amount and varying from this is becomes very difficult. Every financial advisor and personal finance book will tell you the same thing—pay yourself first. It is the best tactic to securing your financial future. But, how do you do it? How can this be done without an insane amount of difficulty? Well, read on.

1. Make your savings automatic. In fact if you can, have it come right off of your paycheck so you don’t even see the money. In some cases your employer or bank can assist with this. Since you never see the money, you don’t even have to make a concious effort to put it away. By paying yourself first you limit your ability to spend that money on other things.

2. When paying your bills, don’t pay them first. Pay yourself first and deposit money into your savings account. Many of us historically have done the reverse and paid for everything else first. The problem with this is, we never seem to have anything left over to put into savings. Simply put, if you wait to pay your savings last, you probably won’t pay it.

3. When you spend, you can save money as well. Purchase items that grow in value. Extra money lying around? Invest it in the stock market. Invest it in paying off your mortgage early. Use it in ways that make you money. Pay off your debts and invest the rest.

When you save money, the key is to really save it. If you buy something on sale, what happens to the money you saved? You probably spent it on something else right?. Nothing really got ‘saved’. From now on, when you save $15 on groceries, put that $15 in your savings account. When you don’t buy a new pair of shoes because you know you need to save, put the cost of those shoes into your savings.

Bottom line is that saving money isn’t that hard. It is simply a habit that has to be learned, just like brushing your teeth. Psychologists say it takes 6 weeks to make an action a habit, so start paying yourself first today and in a little over a month, you will be doing it without a flinch

Culled from: http://prairieecothrifter.com/2010/07/creating-wealth-with-what-you-already-have.html

Do you want to retire poor?

2012-01-20T21:01:00.000+01:00

What a question? who wants to? the truth is that it is likely a lot of people would retire poor if they do not start to plan for their future now!!

If you are still in your 20s or 30s, then you would be in a better position to start to save for your retirement. It might be small sums now but if you actually save and give your money time to compound, then would you realize that you can actually have more by the time you retire. if you are into your 40s, then you are late on your retirement savings and would need to save larger sums to reach your financial goal.

Saving for your your future is very important and only you can be in charge of it. Take control now.

Cheers.

YOUR MONEY OR YOUR LIFE!!!!

2012-01-18T20:55:00.000+01:00

How do you value your money in relation to your life? Well for some of us, life is not to be taken too seriously while to others money is a defining factor. One thing we all agree on, explicitly or implicitly is that ‘Money is something we choose to trade our life energy for’. When we work, we trade our life energy for the money we make.

It is worthy to note that whatever we earn at the end of the month, we have actually traded our life energy for it. For instance your monthly pay is N70, 000. In real value terms you have traded a month of your life for less than N70, 000 because you would pay your tax, buy office clothes, food for the home etc.

One thing is certain; you need to trade your energy/time for money as that ensures continuous survival but it really mustn’t be at your detriment. Ensuring that your lifestyle is proportionate to your money is really important so as to not be tempted into illegal acts.

As we all know, time is money. Endeavour to use yours well

Cheers.

How to manage your finances during tough economic times!!!!

2012-01-15T09:52:00.001+01:00

Knowing how to manage your personal finance can help alleviate pressures you would feel during tough economic time such as economic recession, general strike, natural disasters etc. Most importantly it will help you prepare for tomorrow’s challenges and help prevent making the same mistakes.

The very first thing that you need to know if you don’t already is to save, save and save. You must have a reserve fund to always fall back on. If you don’t, start one immediately. A reserve fund provides your future a safety net. There are a lot of rules about how much you need to save continuously but the generally acceptable one is that it should not be less that 10% of whatever you earn. What you must realize is that , there is never a period you can stop saving. It is a lifelong process that is very beneficial. Having too much money saved is not a problem; all you need to do is to take the excesses for investment or consumption.

Run your household like a business. During economic growth you will distribute profits while during economic downturn, you adjust accordingly by reducing you expenses to ensure you survive the period. There will be a freeze on employment, reduction in allowances or even layoffs. Once they have adjusted and have freed up more money, companies can invest in undervalued assets and thereby preparing for the future.

It's time to take charge of your finances.

WHERE DID THE MONEY GO?

2012-01-09T17:48:00.002+01:00

Have you ever asked yourself this question? I guess we all have, at one point in time. We brought a fat envelope stuffed with N500 or N1,000 bills home and kept it in one of the drawers at home, maybe the bedside locker.

We have a general idea of what we want the money to accomplish, but don't exactly have a written list. Possibly the money came unexpectedly, or is even our dear pay packet.

Then the party begins. Wifey needs this, the mechanic is at the gate, he needs money to replace this component in your old reliable jalopy. Your sons shoe is undersize, your daughters school bags is worn out. On and on it goes...

A few days later, you peek into the much depleted envelope. Four miserable notes stares back at you. You hold back a scream...

WHERE DID THE MONEY GO?

To make matters more interesting, there are still items in your mental To Do list yet to be attended to. Possibly you came to the envelope to get money when you stumbled on a near empty envelope. The money is virtually gone, there are things waiting to be done. The month is still young. If it is your salary, your take home pay has abandoned you midway home. You need to figure out how to make it to the next pay day.

The crux of the matter is that you are not in control of your cash flow. You are simply going with the flow. You don't have a working budget (you may have a beautiful document left somewhere in the house, you don't know where) or spending plan. You are responding to external stimulus. You are not acting, you are reacting, and emotions has a lot to do with your spending.

We all have different levels of discipline when it come to handling money, hence there is no formula that fits all. Since I tend to be weak and emotional in that area, I police myself by making sure that the money departs immediately to their husband's houses before they get to me. I marry them off. I issue post dated cheques to my stockbroker and funds manager at the beginning of the year for the amount I have earmarked for each. Since I don't want EFCC to arrest me for issuing dud cheques, I transfer the money to another account by standing order (where I issue the cheques from). Same with school fees, I have a school fees account, and a savings account. So the moment my salary hits my account, they start heading off in different directions immediately (to their husband's houses) without saying goodbye. That way, I am paying school fees, saving and investing without lifting a finger. I only call my stock broker to tell him which stock to buy. The money is already in may stockbroking account. When it is time to pay school fees, I simply head for the school fees account and withdraw the amount needed, I don't rack my brain and start running helter skelter to figure out where the money is coming from.

Same thing with other expenses, I pick everything for the month. Hence a few days after payday, I am left only with money for discretionary spending. If you come and tell me you father is in hospital overdue for discharge, and you need to borrow money to help settle the bills, there is nothing much I can do. It is true pay day was a few days ago, but the voucher has been closed and the cash all gone to their various places of assignment.

If you are much more disciplined than I am, you can have the money sitting in your salary account, and disburse it according to budget. You only go to the bank with a list of what you need the money for, based on your budget, with no room for impulse.

If London bridge is falling down, repair it with money earmarked for such purposes. If it is important enough, you must have started putting money aside for it. Of course once in a while, unforeseen emergencies come calling without notice. Sometimes the scale can be such that it wipes up your reserves. This is understandable. However, if it happens every month, then there is a problem with your financial planning.

The crux of the matter is control, gaining control of your spending. Imagine your economy is like an airplane, you have to make your way to the cockpit, remove it from auto pilot and take over the controls, whatever it takes. It will not happen overnight. It you are thousands of miles off course, it will take a while and some doing to get back on course, but you can do it.

Having a short term and long term goal helps in galvanizing focus. Most people complain that they don't have money to start a business, workers inclusive. The easiest and cheapest source of funds for a business start up is personal savings. The interest rate is 0%. Maybe you want to build a house, go back to school or whatever. Having a focus helps move you along the road to financial discipline, if you can come to the understanding that a dripping tap can fill a bucket. If you can gather all the money that has been dripping out of your hands in one place, you will be amazed how much it amounts to in one year.

So where did the money go? Witch rats from your village did not spirit it away. Chances are that nobody in your flat or house is stealing it. If you religiously itemize every amount you collect from that envelope, you will see clearly where it went. It will simply add up, though you may not see what it has achieved. It simply grew wings and flew away because you did not send it on any specific assignment. You allowed them to loiter away. Look at money as your servants, and give them assignments before you leave home, you will see that you will get results.

If you allow them to roam free, you will continue wondering where the money went...

Eat great and spend less!!

2012-01-04T11:19:00.000+01:00

One of the biggest money savers I have discovered is cooking at home. I know most of us definitely love to hang out at various clubs and eateries but when to tally up the total you spend eating out against the amount you would save when you cook from home, you would realize that you would have spent more.

When you eat at home, you have total control over what you intend to cook. You ensure that you prepare it hygienically and reduce the chances of eating a meal that has been over spiced. Having an excuse of not knowing how to prepare your meals is not really acceptable. You need to gradually learn and prepare your favorite meals and as you do you will find yourself preparing all your meals.

The easiest way to start enjoying cooking your food is to ensure you have food you can cook in your store and not just prepackaged food. This way you would have lots of options open to you.

Happy cooking!

Time to save is now!

2012-01-02T11:34:00.000+01:00

Save again!! In this harsh and unrealistic times!! Impossible!!!

Well the truth is that if you do not start now you might not start anytime and it doesn’t seem as if the economy will improve anytime soon. So how will you secure your financial future?

It really must be difficult now that the Fuel Subsidy has been removed and prices have skyrocketed more than a hundred percent.

My advice is that you only spend your money on items you really need. No point in you going to buy a new LED television in this period when you can put that money into surviving this tough period. Ensure you prioritize your spending and don’t put yourself into any financial strain.

Take care.

New Year Subsidy and your Finance…..

2012-01-01T21:14:00.001+01:00

Happy New Year to you all.

It’s been quite some time and you know what – Fuel Subsidy hay been officially removed in Nigeria!!!! Well if you have not been preparing for this action then you don’t care about your personal finance at all.

This action has been muted since October 2011 and the best way to combat it was to have stocked your store with non perishable foodstuff and reduce your spending because no one is actually sure of how long this struggle will take.

And if you haven’t made any plans, well, you can start right away by not panicking. Remember that your health is also vital. Finances will be stretched during these times and you must realize that your savings (if any) will be badly hit by skyrocketing prices of goods and services you will be purchasing.

Well, I wish us all a Happy New Year

Me and my Money !!!!!!

2011-04-04T15:25:00.001+01:00

Investment is often a subject of conversation amongst many people with a monthly income who wonder where to invest their savings or outstanding earnings after setting aside funds for living expenses.

The question then requiring consideration is:

What is the meaning of Investment? Among many definitions that can be found in books and on the Internet, a simple explanation of investment is that it is deferred consumption, which involves purchasing an asset, giving a loan or keeping funds in a bank account with the aim of generating future returns. Various investment options are available, offering differing risk-reward trade-offs. When one understands the core concepts of investing and follows through with thorough analysis of available investment options, an investor can maximize returns while minimizing risk exposure.

There are many investment options available but we will focus on Cash Investements, Debt Securities, Mutual Funds, Stocks or Equities, and Real Estate:

Cash investments

These are short-term investments whereby cash is deposited and returns are received on such within the short period agreed usually a year or less. Its name derives from the fact that such investments can quickly be converted to cash if necessary.

These include savings bank accounts, certificates of deposits (“CDs”) and treasury bills. This investment option pays low rate of interest and can be risky in times of high inflation. In Nigeria, there are a lot of cash investment instruments available such as Bankers Acceptances (“BA”), Promissory notes and Commercial Papers. These instruments are traded by money market dealers such as banks and discount houses. What other investment options are currently available within the Nigerian Market?

Debt securities

These are interest-paying bonds, notes, bills, or money market instruments that are issued by governments or corporations. Some debt securities pay a fixed rate of interest over a fixed time period in exchange for the use of the principal. In such investment options, the principal, or face value, is repaid at maturity. Some are pass-through securities, with principal and interest repaid over the term of the loan. Still other issues are sold at discount, with interest included in the amount paid at maturity. This form of investment is safer and is less risky compared to buying stocks. Of note however is the fact that returns are generally lower than other securities.

Stocks or equities

This is an instrument that signifies ownership position or represents a claim on one’s proportionate share in the corporation’s assets and profits. A person holding such an ownership in the company does not enjoy the highest claim on the company’s earnings. Rather, such stock holder’s claim is subordinated to that of a creditor, and the equity holder will only enjoy distributions from earnings after these higher priority claims are satisfied. Stock or equity investments are riskier than bonds or debt security investments. Before investing in stocks, one needs to do thorough research on the company of interest or employ the services of professionals such as asset management houses to avoid exposure to very risky companies.

Mutual funds

Mutual funds are professionally managed collective investment schemes that pools money from many investors and invest typically in investment securities such as stocks, bonds, short-term money market instruments, other mutual funds, other securities, and/or commodities such as precious metals and crude oil. The mutual fund should have a Fund Manager that trades (i.e. buys and sells) the fund’s investments in accordance with the fund’s objectives.

Bank Like a Banker: Save Money

2011-04-01T15:18:00.000+01:00

The business of banking in the land has changed dramatically over the last decade or there about. Most Banks have realized that the cost of doing business the old-fashioned way is no longer effective and they are gradually changing their customers' behavior by encouraging electronic banking alternatives whenever possible. They have done this by charging high fees for services that were once free. If you pay a lot of money in annual fees for banking, it's time to do some competitive shopping.
Before becoming furious with your bank, it may be that the products you're using no longer meet your personal needs. If you have an established relationship with your bank, inquire about the other types of lower-cost cheque and savings account products.

By understanding the rationale of why a bank charges fees for different services will allow you to be a savvy banking customer. If human contact is required to serve you, such as a teller or personal banker, this is very expensive for the bank. The motivation is for banks to encourage more high-tech, "low-touch" methods of meeting your needs. This is accomplished by servicing as many customers as possible with automated telephone services, cash machines, and online self-service banking.

Since the bank needs to train their employees, provide salary and benefits, pay for the branch building, in some cases supply uniforms etc., it is conceivable that your one banking transaction per pay period could cost the bank N300($2) or more for your one banking transaction.

If you do your banking through an automated telephone system or an Automated Teller Machine (ATM), the cost of this type of transaction is much less expensive. However, if you then require assistance from a telephone banker, the price goes from N100 ($1) for the automated process to as much as N200 ($2) for human contact. For the same reasons stated above, the training, location, computer equipment, etc. become more expensive when human interaction is needed.

Now it is clear why electronic banking methods are preferred by financial institutions. In fact, most banks are rewarding their customers with lower fees the more the customer does his/her banking electronically. For example, even though Automatic Teller Machines (ATMs) costs the bank around $100,000 each plus the cost of the computer network and maintenance, the cost of these type of transactions drop to N50 to N100($0.50 - $1) each. Not only are these machines more cost effective, the 24-hour availability to customers is very convenient.

With the ease and convenience of Automatic Clearing House (ACH) payments, this "checkless" process drops the price. And finally, the Internet drops the expense even further. I realize that there is still some fear of banking electronically, but the security that banks have instilled with computer technology far surpasses the current security of traditional banking methods. If you lose your checkbook and wallet, the cost and worry of canceling these checks is very tedious. It's very possible that a thief could forge your name and deplete your accounts in a matter of hours. The sophisticated computer technology, however, although not perfect, has a far more secure system to protect you and your money.

Avoid being the bank's best customer. Attempt to cut your annual bank fees in half by educating yourself. Inquire about the options and products available to you with your banker. By asking about the alternative banking methods, you may find that your bank fees will drop considerably.

The Wisest Investment You'll Ever Make

2011-03-30T15:36:00.001+01:00

If you think this is about buying stocks, bonds, real estate, gold, jewels, etc., you're totally wrong! All of these can and are good investments, but your children are the wisest investment you'll ever make. Teaching your children to be well-rounded individuals will help them out in the long run to fit into and contribute to society. As they contribute in society this in turn helps out everyone, including you as a parent.
Giving your children the right skills and knowledge can be one of the most gratifying and wisest choices you'll every make. Think about it: Who is the one that should have the most influence on your children? It is a parent. Parents can work with their children at a young age helping them develop skills that will last a lifetime. These skills cannot be learnt overnight. As parents you must let your children see you applying the skills you are trying to teach them.

There are a number of areas in which parents can help their children develop. Some of these areas would include: a good work ethic, ability to work and interact with others in many settings, good ethics and respect for the laws of the land, good understanding of financial matters and learning at a young age to work toward financial independence.

A good work ethic is a skill that is developed over time. As an employer or business owner, you appreciate the efforts that are extended in your work or business. As an employee you should feel satisfaction in working hard and accomplishing whatever task you may be working on and in being honest with your employer. Employees that work hard will get noticed by their employer and treated accordingly.

Teach your children at a young age to work hard and do their chores. Young children should be given chores or small jobs to do. By doing this at a young age your children will learn responsibility and learn not to quit when the going gets rough. They must imbibe from a tender age the ability to work hard. Having a good work ethic will help determine what kind of earning power your children will have as adults. If your children can be taught these skills while they are young they are more likely to be financially secure in years to come.

Children that have been taught the skills of getting along with others in different social settings will have an advantage when they become adults. This advantage will come into play when they interact with other people in business, social, and financial settings. For example: In the business world you run into all kinds of people and you need to know how to act in order to be successful. These skills can be taught to young children by letting them interact with children similar in age and, as the children get older, be involved in activities with other children.

By doing this the children learn good social skills and witness different attitudes and types of people. The more your children have chances to interact with other children during their growing up years, the better their social skills are and the better they are at dealing with other people. During this time that your children interact with others you will want to visit with them to see if they have issues concerning the way other children act or behave. When you talk with your children you will help them understand the correct way to handle different situations that come up.

Helping your children to develop good ethics for country and laws of the land is very important. Good examples from parents are one of the main keys in helping your children develop these skills. If your children see you obeying the laws of the land, including paying your taxes, they will see that this important. If they see that you always jump the traffic light they will end up doing the same. Talk to your children about the laws of the land. Tell them that you may not always agree with all the laws, but nonetheless they are the laws and must be followed. Let them know that as citizens there is a process that can be followed to change the laws when we don't agree with them.

Discuss with your children why we pay taxes and what our taxes are used for. As your children understand that tax money is what supports the government and a lot of the programs we have in society, they will begin to understand the importance of paying taxes. It would also be good to discuss with your children areas in government where the money is not spent wisely. Let them know that the government is not fiscally responsible all the time. There are areas for improvement. Discuss with your children ways you or they can get involved in government of local issues. Volunteering time for community activities will help your children gain the spirit of community service. As your children serve in the community they are more likely to become better citizens and obey the laws of the land.

Financial independence is a goal we all should be working for. It is very important that you teach your children ways to become financially independent. They are most likely to learn these skills from you as the parents. While your children are young make them aware of what you are doing in your investments and long term financial planning. When your children get older let them get involved in your financial planning and help them to do some of their own investing. If you can start setting aside some money for your children shortly after they are born, they will then have some money to start investing when they get old enough to learn and take part.

You as the parents have the greatest opportunity to influence your children to become well-rounded individuals. If you are willing to invest in your children's future, they can develop a good work ethic, build good social skills, become outstanding citizens in their local communities and become financially independent. The investment is definitely worth it, because one day your children may be the leaders of the future.

Money - The Crucial Team Sport

2011-03-29T15:28:00.000+01:00

Imagine if you will that you are NASCAR driver. (Now don't overextend this metaphor-just go with the flow!) You start the race and put the pedal to the metal. The crowd is flying by in a whirl of colors. You're exhilarated by the speed. You're starting to pass some of the other drivers. You are feeling pretty confident about this race. "Eat my dust!" you yell to no one in particular. Just when you're at the top of your game, you suddenly realize your fuel is getting low. You pull over to the side, turn off the car, get out, refuel it yourself, get back in and restart the car, and off you go once again, having lost valuable time.

A few laps later and things are looking up. You're starting to cut down some of the lead that the other cars have had on you. Next thing you know you blow a tire, which you had forgotten to check at your refueling pit stop. So once again you exit the race, turn off the car, get out, change the tire, get back in and reenter the race. Now you're only 30 laps behind, but you think, "This baby's got power-no problem!" You hit the gas pedal and try to make up for lost time. After only a few laps, though, you're low in fuel-again! Once more you exit the race and refuel your car yourself. As you watch your competitors flying by, you are beginning to realize that this is a race you cannot win.

You compare yourself to the winner of the race and wonder what the difference is. Is it your car? No, it's the same model as his. Is it his accessories? Wrong again. You've got everything he does. Is it your skills? Who knows? You seem to drive just as well as he does. Then what seems to be lacking? He must have something you don't. You rack your brain and finally conclude that the only thing he has that you don't is a "small" thing called a TEAM. His team takes care of his refueling and tire changing and all those necessary details, allowing him to focus on the task at hand - winning. You, on the other hand, have been trying to do it all yourself.

A team makes all the difference between winning and losing. The losers of this world are those people who take it upon themselves to do everything single-handedly. These are the do-it-yourself-at-all-costs folks. They believe that nobody can do things as well as they can. Winners, however, understand the importance of synergy (1+1 = more than 2). Winners assemble a team.

How do you win the Super Bowl, Stanley Cup, World Series, NBA Championship, World Cup, or any other athletic event for that matter? With a team consisting of coaches, players, staff, and a whole lot of other supporting people. Nobody wins on his own. A great coach is nothing without great players. A great player gets nowhere without a great coach (and probably a great agent, too!). Great coaches and players can do nothing without facilities and the people to take care of them; without doctors and nutritionists, physical therapists and other sports medicine professionals; without team owners and financial backing from advertisers. The list could go on endlessly.

You see, everything you do is inherently connected to a team: eating your food, reading your newspaper, buying a home, driving to work. Think about all the teams involved in each of these situations. In fact, the world is so dependent on connections that we cannot function without teams. And yet when it comes to money that is exactly what many of us try to do. We think we know everything we need to know about handling our finances, and no way are we going to pay someone to help us, even if it nets us more in the long run.

Like the winners of the world, the wealthy of the world assemble teams to help them build their financial futures and keep them. The wealthy see their team as an investment, an investment to protect their investments, so to speak. Their team consists of (but is not limited to): a good honest attorney, a tax consultant, an accountant, and many others whose job it is to keep them [the wealthy] wealthy.

So, how would you go about building a team whose job it is to lead you on to financial victory? The first place to start is a mentor, who is probably the most important part of your team. A mentor is someone or something that guides you along your path to wealth (and presumably he or she has already walked that road). Mentors don't have to be actual people (although this is extremely useful for feedback and one-on-one support). Mentors can also be books and other information. Experiences can also serve as mentors. You may have many mentors at different points in your life; often they show up just when you seem to need them. Mentors can also be key to introducing you to other potential team members, such as attorneys, planners, consultants, investors, accountants, etc.

Using a team to achieve your goals is really much simpler than doing it yourself. Nobody can know everything about everything, which is why there are different jobs for different people. There is no way you could learn in your lifetime eve rything you need to know to achieve financial success if you try to learn it all by yourself, one piece of information at a time. Using the collective resources of your team will greatly simplify your life and infinitely expand your returns. Truly, a team is the only way to win.

GO, TEAM, GO!

You might be rich!!

2010-07-30T23:31:00.000+01:00

How relieving! Not to know that you are actually rich. It could be unclaimed dividends, cheques or any other document kept somewhere and you don't know about it.

What to do to ensure you avoid such a situation for yourself or others is to ensure that all transactions are safely recorded and kept in a next of kin name.

This way, you can always secure the present and the future. You can never tell who the next poor - rich person would be.

It could be you!

Personal Tutoring is vital!!

2010-07-24T17:57:00.000+01:00

Going through School is important, but if you really want to learn how to improve your financial you have to do it yourself. The key to your financial future actually rests with you.

You have to become aware of all avenue available to you to improve your financial status and learn how to exploit it.

This is vital to your success in any endeavour you embark on.

See you and good luck..

Where is your MONEY?

2010-03-29T07:21:00.003+01:00

Do you know that at least 10% of the money you earn is YOUR's to KEEP!! Yes, it is quite true. Before you pay any bill from your pay you must as a matter of urgency keep at least 10%.

Its already Month end and you have just received an alert form your bank that your salary has been credited into your account.

Ideas flow into your head on how you intend to disburse it. You must always ensure to prioritise your spending in such a way that your bills are not more than what you earn.

That is the major of keeping track of how your money goes out of yhour purse.

Making MONEY!

2009-07-19T21:45:00.003+01:00

How easy is it for you to make money? Some people believe its very hard while others understand you need to put in a little effort to make extra income.

Well making money is not that hard! Come to think about it, as you are reading this someone somewhere is making money from it. Can you believe that? You open a webpage and click on a link. Just like that, someone will be making money somewhere.

You can make money from anything out there as long as you set your mind to it. Look out for opportunities that are staring you in the face waiting for you to take advantage.

You definitely do not have to look far. Who supplies Newspaper in your neighbourhood? What about recharge cards? What about Supplies?

Look around and you will SEE!

Goodluck.

Personal Financial Statement - First and Foremost Things You Need to Remember

2009-06-03T11:31:00.003+01:00

Every time you want to take with a financial matter, it is essential for you to recognize aboutpersonal financial statement. Just start from the basic knowledge of reading, writing, and using the personal financial statement.

Don't Shudder

When it comes to deal with a financial statement, the majority people will become easy to quiver. Everything that emerges in their mind will be the hard work, math, and boring works in which most people are not keen on doing these.

Nevertheless, this isn't a big problem for people who are skilled at finance. For them, a financial statement is quite easy to know about and can even be a fun and routine monthly activity for them, after they have got the hang of it all.

Actually, a statement of financial is significant since it can assist you gain greater control over your finances and your business. Furthermore, it will also help you charter new territory financially as well.

Since a statement of personal financial can assist you enter into totally new territory, reading this statement can be likened to skiing down a slope. Certainly, nowadays, almost everyone can make their own personal financial statement and read it and even use it to further their financial goals. However, these statements originally were almost completely applied by those with plenty of money.

The fact is that you'll be able to progress your financial in the next future after you have gotten to know your past financial history. The statement of personal financial assists to show you with greater clarity all that needs to be understood. Additionally, it especially proves its worth by identifying things that are holding up your financial progress, and so using it appropriately can assist you overcome hurdles and obstacles to a better financial future.

The key to your financial independence is your personal financial statements. Make sure that you'll use your time effectively once you enter the world of financial accounting. If you want to increase your personal finance and achieve your future goals, you should make full use of your financial statements.

You can also read on my free tips and guideline to guide you on your personal finance. I hope this will solve your problem related to health especially about personal financial statements.

How easy is it to make MONEY?

2009-05-10T09:56:00.003+01:00

For some people this question rings daily in thier head. How do I make my first million? How do I make more money? What business do I do?

Well, its really no big deal. All you need to realise is that there are lots of opportunities out there that you can take advantage of. All you need to do is to be aware of opportunities in your environment. Meet the needs of people and they will pay you for it. Its that simple!

Realize that you are in a world where there are lots of opportunities that you can take advantage of and make extra money for yourself.

Good Luck

How Real People Grow their Wealth (Series) - 3

2009-03-22T06:03:00.004+01:00

Track Your Spending

Keeping tracking of your spending (even for 30 days) allows you to know exactly what you spend.

Have you ever gone to the ATM and two days later asked yourself, "I know I got N20, 000 on Tuesday -- where did it go?"

You may remember some of it, but you will not remember all of it. Tracking spending takes out the guesswork and puts you firmly in control of your finances.

From there, it's easy to determine what you can cut or, better yet, what you can save.

How Real People Grow their Wealth (Series) - 3

2009-03-15T05:40:00.002+01:00

Set Limits and Stick to them

Yes, that true. For you to grow your wealth you must have set targets that you have to stick to. if you live on a Budget of N30, 000 you need to make sure you do not spend beyond that.

Gonig beyond your set limits could have devastating consequences if it is done without consideration for your set plan for the future because you are actually disrupting the flow of investments you have set up.

Remember, that you are in control of your destiny so from now on, whenever you set your limits make sure you stick to them.

How Real People Grow their Wealth (Series) - 2

2009-02-07T20:57:00.003+01:00

Welcome to the continuation of our series. I will start right away.

Save 50% of every raise you get

That is true and a good way to grow your wealth gradually. If for instance you earn N70, 000;00 p/m and you save N30, 000:00 and spend the balance every month you would be accustomed to a lifestyle of N40, 000;00. your company then decides to give you a salary raise of N30, 000.

What do you do with the extra Cash?

You add a minimum of N15, 000;00 to your saving to raise it you N45, 000;00 and then add the balance to your spending money.

Remember you need a plan on how to invest whatever saving you are putting away.

Good luck.

Till next time

How Real People Grow their Wealth (Series) - 1

2009-02-01T20:48:00.003+01:00

For most people, wealth does not come in a WINDFALL but it gathers gradually as a result of years of hard work and diligence. Therefore, how do real people grow their wealth to the point where they have enough to sustain themselves.

I will be offering tips here for the next five to seven weeks on this. You will not find playing the lottery, participating in shows here but they are all sensible suggestions for savings. Let's get started:

Grow your own food.

Ha! someone might yell but its one sure way of having quality inexpensive vegetables all year round. You dont need a big plot of land to do this, you might even just be using the soil in the backyard of your house. What you will gain overtime as you do this will be invaluable to your health and well being.

Imagine the kind of lessons / life skills you would be able to pass on to your children / loved ones as you constantly tend to your plants.

Try it today.