Save Money Investing

Funny Ways To Save Money

noreply@blogger.com (ayoenda) — Sat, 11 Feb 2012 09:00:05 PST

There was a list of funny ways to save money on a "frugal living" website. They weren't necessarily meant to be funny, but were gleaned from real suggestions sent in. Some cheapskates don't seem to notice that an extra hour at work might put them further ahead than many hours of penny-pinching.

The following are real suggestions, and then there are some funny ways to save money that you really shouldn't try.

One person suggested ways to save money on weddings that included picking up the leftover flowers at a cemetery. I'm not sue how you can tell which are "leftovers."

Another creative penny pincher found a way to save money on a car wash. He washed his entire car using the squeegee at the gas station.

A woman confessed that she has the kids stuff their pockets with the free ketchup, salt and other condiment packets every time they were in a fast food restaurant. That's not all, though. She actually had the kids squeeze ketchup and mustard from the packets into regular jars of ketchup and mustard, and claims she hasn't bought these condiments in years.

To save money on an umbrella, one man suggests going to the lost and found department of any large public library. Tell them you lost a black umbrella. They will have several, from which you can pick the best one and claim it as your own.

Call people long-distance when you know they won't be home. Leave a message for them to call. That way, they pay for the long-distance call.

Don't pay baby sitters! Get young couples who are thinking about having kids to "rent" yours for the evening. They get to see what it will be like, and you can get paid instead of paying for sitters.

Turn off the TV and all the lights to save electricity. Tell the kids it's a game of hide-and-seek. Train your dog to beg for food from strangers, so you won't have to buy dog food. Rub pine needles under your arms instead of buying deodorant. Take extra napkins from fast food restaurants to save on toilet paper.

Borrow your neighbors toothbrush instead of buying your own.

If I write a book on ways to save money, funny or not, will I make much in sales, or will everyone take my suggestion and borrow it from the library instead of buying it?

Forex the Future Investment.

noreply@blogger.com (ayoenda) — Fri, 10 Feb 2012 09:00:10 PST

There are many many advantages over the various other ways of investing. First of all it is a 24 hr market, except for weekends of course. You have the US market then the European and then the Asian. One of the great times to trade is during the over lapping periods. The USA and European overlap between 5am & 9am eastern and the European & Asian between 11pm & 1am eastern. Usually the busiest time and best to trade.

The is also the risk factor for the accounts. With futures and options you can get margin calls that can wipe you out. If you get caught in a bad trade not only do you lose the money in the account but you may have to come up with alot more from your pocket. It can be very risking.But not in Forex. Worst case senerio you could lose whats in you account. But you would have to do something really stupid. Like making a big trade on a Fundamental day and leave it alone. If market takes a bad move and you weren't there. OOOPS. But That wouldn't happen with a smarth trader.

Then there are the demo accounts which is an account where you can trade using all the right things, platform,charts,and information. But you are using play money, or what we call paper trading too.

Plus with Forex you have a mini account. Instead of needing thousands of dollars to get into it. You can open an account with as little as $300.00. Now of course you will be trading at 1 tenth of a trade. IN other words you controlling 10,000 instead of 100,000.00 These are call lots. Which also means you will only risk 1 tenth too!

So if you would love to learn to do investing and not have near the risk you really need to take a closer look at Forex trading.

Five Budget Tips to Help You Save

noreply@blogger.com (ayoenda) — Thu, 09 Feb 2012 09:00:08 PST

Saving money is much easier than earning it from scratch. But it is also much harder than it is to spend money, and as a result, most of us spend what we would rather save. In order to begin saving money, we need to have a plan, and the more automatic the plan works, the better. When we are confronted with the choice between spending money and saving it, we run the risk that we will give in to the temptation to choose instant gratification. So taking the choice out of the equation is one of the first steps to a steady savings program.

Here are five tips for budgeting and saving money, the automatic way:

Set up an automatic withdrawal program with your bank, so that every time you make a deposit, a percentage of the money you deposit is automatically transferred to a savings account that is harder for you to access. One way to do this is to have your bank use an automatic deposit system to put a set amount of money – for example, $100 – into your savings account each month.

Save your loose change and small bills. Put a piggybank in your kitchen and every time you come home, empty the change from your pockets and put it in the piggybank. Toss in a few one-dollar donations from time to time. Although it sounds juvenile, you will be surprised how much you can save with this old fashioned method. And it is so much fun to break the bank when it won’t hold another cent.

Write down everything – and that means no exceptions – you buy. Keep a log of every single purchase you make. Write down what you bought and how much it cost. If you left a tip, write that down too. Be diligent about keeping your log book, and if you do it well, you can just do it for a month and gather enough information to help you save even without the log book. Most people find hidden expenses, like $10 per day for coffee or $50 per month for a gym membership that is never used, and then they can easily adjust their budget to save money immediately.

Spend less at holidays. And entertain at home. Instead of giving expensive gifts at Christmas, give handcrafted items, poems, or pledges to do errands or barter with friends. One fellow we know agreed to shovel his friends’ sidewalks during one snow season. His friends got a great gift, and he saved some cash to spend once the snow and ice thawed. Instead of going out to eat in restaurants, cook at home or invite friends for a potluck dinner. Rent DVD’s instead of going to the movies.

Don’t shop hungry. Scientific studies show that people who have a strong appetite will not only eat more, but they will consume more of everything else, too. Many of us know that if we go grocery shopping while hungry, we will buy more than we need. So don’t do it. Eat first, then shop. But since studies show that it applies to all sorts of shopping, always have a satisfying snack before going to the mall, the clothing boutique, or the sports store. You’ll spend less, and save more.

First Time InvestorsHow Much Money Should You Invest?

noreply@blogger.com (ayoenda) — Wed, 08 Feb 2012 09:00:02 PST

Many first time investors think that they should invest all of their savings. This isn’t necessarily true. To determine how much money you should invest, you must first determine how much you actually can afford to invest, and what your financial goals are.

First, let’s take a look at how much money you can currently afford to invest. Do you have savings that you can use? If so, great! However, you don’t want to cut yourself short when you tie your money up in an investment. What were your savings originally for?

It is important to keep three to six months of living expenses in a readily accessible savings account – don’t invest that money! Don’t invest any money that you may need to lay your hands on in a hurry in the future.

So, begin by determining how much of your savings should remain in your savings account, and how much can be used for investments. Unless you have funds from another source, such as an inheritance that you’ve recently received, this will probably be all that you currently have to invest.

Next, determine how much you can add to your investments in the future. If you are employed, you will continue to receive an income, and you can plan to use a portion of that income to build your investment portfolio over time. Speak with a qualified financial planner to set up a budget and determine how much of your future income you will be able to invest.

With the help of a financial planner, you can be sure that you are not investing more than you should – or less than you should in order to reach your investment goals.

For many types of investments, a certain initial investment amount will be required. Hopefully, you’ve done your research, and you have found an investment that will prove to be sound. If this is the case, you probably already know what the required initial investment is.

If the money that you have available for investments does not meet the required initial investment, you may have to look at other investments. Never borrow money to invest, and never use money that you have not set aside for investing!

Finding Secure Investments

noreply@blogger.com (ayoenda) — Tue, 07 Feb 2012 09:00:00 PST

If you're trying to build a nest egg that won't crack, it's important to establish a safe and dependable investment strategy. Yet last year alone, millions of Americans lost their life savings through investments that looked safe. In some cases, people lost both their jobs and their pensions when companies failed.

So, is there a safe place to put your money? Analysts say yes, but it's important to learn a few facts first.

For instance, real estate has long been known as a secure, tangible investment because it generally appreciates over time. But most would-be investors are not real estate experts, and many of us don't have enough money to fund the purchase of an investment property-let alone to fix up a run-down home. However, there is another strategy. It's called cash flow investing and it allows people to benefit from secure and profitable real estate investments without buying or selling properties.

Put simply, a real estate cash flow note is a private mortgage created between two individuals instead of between a buyer and a bank. What many people don't know is that one in 13 American homes is sold this way. Much like banks, which buy previously created mortgages, private individuals can buy cash flow notes to build returns of 20 percent or more. Here's how it works:

Let's say I sold a house for $100,000 and my buyer had $50,000 to use as a down payment. I can draw up a contract that takes $50,000 down and finances the remaining $50,000 over 30 years. I now have a cash flow note that generates monthly payments of $299.78 each month secured by real estate.

As a note holder, I have two options. I can take advantage of the monthly income and interest, or I can sell the note to another investor for instant cash. This is where you, as an investor, come in to make money. Let's say you're an investor with $35,000 to invest. I might not be willing to wait 30 years for my money, so I'll sell you my $50,000 cash flow note for $35,000. Many investors find they can buy notes at great prices just because the original note holder wants to "cash out." Now you're receiving a steady monthly income of almost $300 and you're in a position to make a 30 percent return on your investment-even before interest.

Best of all, unlike stocks and bonds, your cash flow note investment is secured by real estate-one of the most solid investments in the world.

Financial Mistakes To Learn From

noreply@blogger.com (ayoenda) — Mon, 06 Feb 2012 09:00:04 PST

In this day and age, there really shouldn't be any reason to make certain financial mistakes. Do a search of the internet and you will find that there are thousands of articles out there that warn you of the pitfalls of certain choices. Advice for living a financially stable life is everywhere. What are you waiting for?

Here are the most common mistakes that I've seen people make. I've even made a few of them myself. These are the financial mistakes that you can learn from. You've probably made a few of them yourself, they are very common.

Mistake #1: Using that little plastic card to get what you want.

We'll just start off with the number one mistake out there. This is probably the most common mistake in the country. Almost every person in the US today has a credit card. It is almost like a right of passage when you turn eighteen. There are even people out there that aren't eighteen yet that have them.

Credit card debt is the fastest way to ruin your finances. It is easy to acquire and difficult to pay off. The minimum balance doesn't pay off enough of your outstanding balance to help you very much. You will be paying on your balances for decades. Even a $500 balance can take you over a decade to pay off if you simply make the minimum payment.

Add in the interest rate, which rarely goes down. If you miss a payment, you will really be paying the bank. Thirty percent interest is common on a credit card once a payment has been missed. And you only have to miss that payment by a day -- which can happen in the mail or processing if you don't plan ahead well enough.

Mistake #2: Buying more home than you can afford.

With the real estate market in the state it is today, many people are regretting their housing decisions. Adjustable rate mortgages are acceptable loan products for some people. But only if they can afford the maximum rate that the loan can hit if interest rates go up. Too many people only consider that introductory rate. They stretch and purchase as much as they can afford. Then, when rates go up and their rate adjusts, they can't afford the payment. Add that to a slowing housing market, and you may have a foreclosure on your hands.

If you are going to buy a home, make sure that you purchase what you can afford. Take out a fixed-rate mortgage so that you know what your payments will be. If rates go drastically down in the next couple of years, you can always refinance. If rates go up, you are protected. Try to aim for a 15-year mortgage over a 30-year. It will save you hundreds of thousands in interest. But if you can't do it, a 30-year fixed-rate mortgage is an acceptable loan choice for the purchase of a home.

Mistake #3: Not controlling your money.

Too many people live paycheck to paycheck. They have no savings. They have no retirement plan. They have nothing to back them up in the case of an emergency. They have no control over their money.

You have to take control of your finances if you want to retire someday. You have to learn how to budget, save, invest and spend. All it takes is a little time. And once you get in the habit, you will notice that your life has more control. You should say where your money goes, not lenders or creditors or anyone else.

Mistake #4: Not saving for retirement.

There are more seniors in the work place now than there were twenty years ago. And even more than there were fifty years ago. If you want to retire with enough money to live comfortably, you have to start putting something back today. Start an IRA. Contribute to your employer's 401(k) plan. Figure out how much you need to invest and find a way to do it. This is your future. You don't want to reach sixty and realize that you can't afford to stop working. There is no guarantee that you will be able to draw social security or other forms of assistance then. What if you become ill and have to retire? What if you get hurt? Prepare for the future. Start saving for retirement today.

Family Finance

noreply@blogger.com (ayoenda) — Sat, 04 Feb 2012 09:00:00 PST

One of the hardest things that young couples report during their first year of marriage is getting to grips with joint finances. While most are willing to share what they have with their partner, they are not sure on the best way to bring this sharing into effect so that they can share with their new partner, but at the same time maintain financial security and a degree of independence. Some couples resolve this by resorting to separate finances and others find a way to keep things together, but it is generally reported as one of the biggest strains on newly married couples.

As well as this, there is also the problem that many people find it difficult to budget and control their finances. It is one thing to fail to keep track of expenditures when you are single, but when you are married you have more to answer to than just yourself. This is especially true once you have children. If one partner fails to keep control of their spending while the other is forced to worry about finances, it can create an enormous strain on the relationship.

Family Budget

One of the best answers to this dilemma is to create a family budget. This should outline what is allowed for the various expenses, which is to be responsible for what expenses and how much each partner can spend on discretionary expenses. While this may seem like a drastic response that takes away all the responsibility and financial independence from both partners, all it is really doing is getting both parties to sit down together beforehand and work out how much they can afford to spend on what, and then sticking to this. It is about being in control of your expenses rather than letting them have control over you.

Other ways of taking care of difficulties between married couples is to divide out the family expenses depending on how much each partner earns. This way both will feel responsible for the security of the family and will feel like they are an important contributor to the family finances.

Financial Matters

While each partner should have a degree of financial freedom, and also privacy, finances should be discussed openly and with without shame. Past debts or mistakes that one party has made should be put in the past and should be forgotten. At the same time, if one partner shows that they are unable stick to the budgets they have agreed, their financial freedom will have to be taken from them and they should be given a tight leash in financial matters.

Easy Ways to Start Saving

noreply@blogger.com (ayoenda) — Fri, 03 Feb 2012 09:00:02 PST

The holidays can really have us searching for a deeper meaning -- one that tells how to make the dollars go further. There are easy ways to start saving money.

Start with the simple things. Eat out less, and stay home more often. Have your friends over for a movie night instead of going out on the town. Start a rotation. Have friends over to your house one weekend, and go to their the next weekend. This way you both save without having to sacrifice your social life.

There are many ways to save money shopping for your children. All it takes is a little research. You can often find clothing at a consignment or thrift store for half of the original cost. But be careful -- you can often find the outfit new on sale for the same price. Once you have shopped around for a while, you'll learn where to look.

Set up a clothing swap with your friends who have children. You can hand down clothes to a younger child who will then hand them, and others, back down to your younger child.

There are other areas that you can save money when it comes to your children. You may have noticed that children love to draw. Instead of sacrificing your new office paper, let them use your used office paper. Simply stick a box in your office that you toss paper into. I do this. My children know to just get paper from the box and get busy. You can even re-use paper grocery bags for a change of pace.

Babysitting costs can add up. Wouldn't it be great to find a free babysitter? Try rotating sitting with your friends. We keep the kids on Friday night and our friends go out. On Saturday, we hit the town. Both couples get to enjoy a night out without the added expense of a babysitter.

Speaking of the weekends, don't blow all that you have saved on the weekend. You have worked so hard all week, so it's easy to think that you deserve a little fun. While that is true, there are ways to enjoy the town without spending a lot of money. For example, instead of going to the amusement park (which can cost a small fortune), go to a new park and ride bikes through the trails. Picnics, hikes and scavenger hunts cost little, but make lasting memories for your children.

One of the biggest ways that money is lost is through simple mismanagement. Credit cards do help make ends meet, but only temporarily. If you can't pay off the balance at the end of each month, you are going to be in a world of hurt in the future. Interest charges and minimum payments can stretch out a small amount of money into a long, endless repayment period.

Overdrafting your account is another example of lost money that you could be saving. Even if you have overdraft protection, the fees will cost you in the long run. If you have a $25 overdraft fee, and overdraft four times a month, you will lose $1,200 a year. Was it really worth it? What could have been purchased with $1,200?

There are ways to save money that don't take a lot of effort. It may seem like a little bit here and there is just useless. But it only takes 100 pennies to make a dollar.

Don't be Money Ignorant

noreply@blogger.com (ayoenda) — Thu, 02 Feb 2012 09:00:08 PST

There are some simple things that you have to know how to do. But it seems like no one ever sits down and teaches you. Balancing your checkbook, making wise financial decisions and handling debt are vital to your financial health.

I guess it's something that we make our mistakes and learn from. But today, the mistakes are costlier than ever. With credit cards targeting college students and debt problems affecting millions of consumers, every person should take the time to make sure that they and their children know how to manage their finances.

Why?

Have you ever stressed about money? I won't say that proper management will eliminate money stress, but it will certainly cut it back by around 90%. If you've ever spent hours fretting over where you will get the money to pay for bills or gas or whatever, you will truly appreciate the freedom proper financial management brings.

And the thing is, it is so simple. The first things you should know are how to balance your checkbook, what interest rates are and how you pay off loans and save for retirement. Do research before you buy a car or take out a loan.

After you've done a little homework, you can start understanding your own finances. Start with your bills. You need to not only know how to read them and pay them, but also what they mean to you financially. Make a list of your current financial responsibilities -- what you owe, who you owe and your interest and payment amounts. Add to this list all of your expected financial liabilities, such as increases in insurance premiums or a new home purchase. Add in your daily expenses, such as food and gas money.

You've now completed the first step in your own personal family budget. This will be your blueprint of how you will spend and save. Add up all of your monthly income. Subtract your expenses you have listed from your income. The results should be a positive number. If it isn't, you are spending more than you make. You need to find places to cut back so that you don't fall further and further behind.

Many children believe that credit cards are a magic way to get what they want. They will buy everything. Adults should know better. Credit cards need to be paid off. This is your top priority -- you have to get out of debt. Don't charge anything that you can't pay back at the end of the month. If you can't resist the card, put it in your safety deposit box. You won't use it on impulse if it is hard to get to.

Do You Really Need to Buy A New Car?

noreply@blogger.com (ayoenda) — Wed, 01 Feb 2012 09:00:04 PST

I have notice that keep on changing new car has become a trend of today’s life in city. People keep on switching to new car for no reason. It seems like car has become a way for people to express and show their status. Every year there are so many new car models coming up. So they keep on changing the car whenever they saw some new models that they like.

I had even heard people saying this: ‘Since I need to pay for my installment every month, then why don’t I switch to a better new car?’ It seems like paying car installment has become part of people’s routine life where if they don’t pay for the installment, they don’t know what to do with the money. Maybe people have forgot that they don’t have to pay for car installment if they don’t want to.

I know that I may offend a lot of people by saying that buying a new car is not necessary. However what I am saying is not that you cannot buy a new car. But when you wanted to buy a new car, think about why do you want to buy it. Is it neccessary? Do you want to buy it because you need it? Or you want to buy it simply because you wanted to show off to people that you are rich. Do you buy the car to boost up your ego?

For me, I only buy a car when it is needed. When I say needed, I mean that I really need the car. Not for no reason, not for showing off purpose. If my house is located at an area where I have no access to public transports, then I will consider to buy a car. If my old car has too many problems, then I will consider to switch to a new car.

Currently I have a car of 5++ years old. I have no intention to change a new car right now as my current car is still in good condition. I plan to use the car for at least 10 years if the conditions are ok. Actually the car is currently used by my wife to drive to work. For myself I am actually taking public transport (LRT). I have no intention to buy a second car although there is no problem in getting one financially.

With this I can save at least RM1000 per month. I would rather leverage this RM1000 per month for other purpose for example paying extra for my house loan. This way I can finish my house loan faster and reduce the interest. Why do I want to increase my expense to somewhere that I don’t really need. I can even use the extra money to do some investment. This will improve my financial situation.

Do You Pay Yourself?

noreply@blogger.com (ayoenda) — Tue, 31 Jan 2012 09:00:06 PST

The typical scenario is that you get your paycheck. After you recover from the shock at how little is left after taxes, you proceed to divvy it up among all your outstanding bills, intending to put whatever is left over into your savings.

But there never seems to be anything left over and your savings don’t grow.

A better plan would be to pay yourself first. Don’t let the money get into your hands. You might find that you actually begin to grow your savings much quicker this way.

If you work for an employer with a 401K plan, the first thing you should do is to fund it to the max. If you can’t afford that, at least put enough in to get the full matching contribution form your employer.

This investment is made before taxes. Your investment is larger and with the employers contribution grows quickly.

Next have a brokerage or mutual fund company debit your banking account monthly. This money should first go into an IRA – if you have five years or more to go to retirement, make it a Roth IRA.

Next have a few dollars more be debited to go into a no-load, low cost mutual fund. The younger you are, the more aggressive your choice of fund can be.

After that is done, then figure out how to pay your bills and living expenses. If money is tight, cut back on your living expenses and use the extra money to pay down your debt.

Start with the lowest balance first. Once that debt is paid, take the amount of money you were paying on that debt and add it to the payment on the next lowest balance debt. Continue doing this and you can be totally debt free within 5 to 7 years.

Another version of this method is paying the highest interest rate debt first. The principal is the same, you just see more progress with the first method, although it could be more costly based on how your debt is distributed.

(If you don’t believe me, get the premier version of Microsoft Money or Quicken and use the “Debt Reduction” module. You will be shocked at how much money you will save and how fast you can eliminate debt this way.)

The idea is to scrimp at the expense of your current lifestyle, while leaving your savings to grow and you debt to shrink.

I know many of the people reading this will scream that this is an impossible plan. But it is quite doable with a little will power and the ability to delay gratification for a while.

The problem is that if you don’t do this, your future might turn out to be very bleak.

Do You Know About Money?

noreply@blogger.com (ayoenda) — Mon, 30 Jan 2012 09:00:04 PST

In a test of basic economic principles given to 2000 Americans, both adults and teenagers, the average grade was failing. Throughout the years, it has been proven by numerous studies that when high schoolers graduate, they leave with little understanding of personal finances.

I was never taught how to count back change, balance a checking account or understand compounding interest. But yet, I graduated with the highest math honors, having tackled calculus and physics courses at the neighboring college. But at no point, was I taught the basics of finances before I entered college. Nor were many other American teenagers.

And now credit card debt and financial troubles seem to be everywhere. It is surprising how many people don't really understand their finances. For example, one of my close friends recently told me that her credit cards had great rates once the 0% interest expires. I told her that her rates can go up at any time, but she didn't believe me.

So what do you and your children need to know about money?

You need to understand the basics of how to balance your checking and how to budget your income. These two practices will keep you financially grounded. If you can balance your account and stay within your budget, you are probably doing well.

What can throw you off track is debt. And it is coming at you from all sides. You need to understand that there is good debt and bad debt, but that debt becomes fatal if you can't afford what you have racked up. For example, having a home mortgage is good debt. But if you can't afford the mortgage payment and risk defaulting on the loan, there is no good in it.

You have to know how debt works. Understand the advantages and disadvantages to using your credit. If you have or are thinking about taking out a credit card, I suggest that you learn all of the tricks of the trade. I would say that the one thing to remember is that debt costs you. All debt costs you. Credit cards, auto loans, mortgages and student loans aren't designed for your good. They are there to make the lenders money. Keep that in mind.

When you are thinking about taking out a loan, you should do main things:

Know your credit score and what your credit report says. Figure out the total cost of the loan. This includes all of the interest you will have to pay back. The number might surprise you. See how long it would take you to save for it versus paying off the loan. Shop around for the best interest rates and terms.

One of the most important things is understanding compounding interest. This can be slightly hard to get a grip on at first, so have someone show you how the numbers work. And keep in mind that though interest can cost you in debt, it can give to you in savings.

Finally, you need to understand that as an adult, there is more to finances than just money. It is about self-control, trust and other emotions. There are also many facets to managing your finances. You have insurance policies, investments and wills and trusts to consider. It's all about making the best future for you and your family. That's what money spent wisely can do for you. Take the few hours to learn how to get there. It will pay you back thousands and thousands of times.

Different Kinds Of Investments

noreply@blogger.com (ayoenda) — Sat, 28 Jan 2012 09:00:03 PST

These days, you can’t retire without using the returns from investments. You can’t count on your social security checks to cover your expenses when you retire. It’s barely enough for people who are receiving it now to have food, shelter and utilities. That doesn’t account for any care you may need or in the even that you need to take advantage of such funds much earlier in life. It is important to have your own financial plan. There are many kinds of investments you can make that will make your life much easier down the road.

The following are brief descriptions for beginning investors to familiarize themselves with different kinds of investment options:

401K Plans
The easiest and most popular kind of investment is a 401K plan. This is due to the fact that most jobs offer this savings program where the money can be automatically deducted from your payroll check and you never realize it is missing.

Life Insurance
Life Insurance policies are another kind of investment that is fairly popular. It is a way to ensure income for your family when you die. It allows you a sense of security and provides a valuable tax deduction.

Stocks
Stocks are a unique kind of investment because they allow you to take partial ownership in a company. Because of this, the returns are potentially bigger and they have a history of being a wise way to invest your money.

Bonds
A bond is basically a promise note from the government or a private company. You agree to give them a set amount of money as a loan and they keep it for a set number of years with a predetermined amount of interest. This is typically a safe bet and one that is a good investment for a first time investor because there is little risk of losing your money.

Mutual Funds
Mutual funds are a kind of investment that are based on the gains and losses of a shareholder. Basically one person manages the money of several or many investors and invests in a list of various stocks to lessen the effect of any losses that may occur.

Money Market Funds
A good short-term investment is a Money Market Fund. With this kind of investment you can earn interest as an independent shareholder.

Annuities
If you are interested in tax-deferred income, then annuities may be the right kind of investment for you. This is an agreement between you and the insurer. It works to produce income for you and protect your earning potential.

Brokered Certificates of Deposit (CDs)
CDs are a kind of investment where you deposit money for a set amount of time. The good thing about CDs is that you can take the money out at any time without paying a penalty fee. We all know life isn’t predictable, so this is a nice feature to have in your option.

Real Estate
Real Estate is a tangible kind of investment. It includes your land and anything permanently attached to your piece of property. This may include your home, rental properties, your company or empty pieces of land. Real estate is typically a smart and can make you a lot of money over time.

Developing a Successful Home Budget

noreply@blogger.com (ayoenda) — Fri, 27 Jan 2012 09:00:07 PST

This is probably the most requested topic that I receive, normally after someone gets a large unexpected expense, or they start thinking about retirement and realize that they have saved a woefully inadequate amount of money.

I recommend using a monthly time-frame to look at your cash inflows and outflows, because most bills are monthly and four weeks is a short planning period that most people can manage. The first thing to do is determine your monthly after-tax income. Usually, this is the amount of money from your paycheck that gets deposited into your checking account. If your income is variable, then use an average of the last three months. (Any savings account interest income would be a bonus.) Next, list out your fixed monthly expenses, such as rent, mortgage, car payment, phone, electric bill, etc. All of these numbers can be changed in the long-term, but first you need to determine a baseline budget of where you are right now.

Make sure you include all of your utilities; some are only paid quarterly or annually, like car insurance, the water bill, or an association fee. Take these expenses and calculate what they would be on a monthly basis. For example, if your water bill comes quarterly, divide it by 3. If you have semi-annual car insurance, then divide it by 6.

So now you have your fixed monthly income and your fixed monthly expenses. Deduct one from the other, and you have the variable amount of money that you are free to spend any way you want for the remainder of the month. From this remaining amount of money, start listing out your main categories of variable spending: groceries, entertainment, medical expenses, clothing, dry cleaning, personal care (haircut, nails, etc.), and gifts. Take each of these variable expenses and put an amount next to them that you think represents your average monthly spending for that category.

Make as many subcategories as you need to make an accurate estimate. The more precise it is for your spending habits, the more effective it will be for you. For example, food can be broken down by grocery store/fast food/dining out/work lunch/etc. Then go through the last few months of your checkbook and credit card statement looking for any spending that hasn’t been covered so far that you need to include for your situation.

Now you should have a total number for your monthly income, total monthly fixed expenses, and total monthly variable expenses. The moment of truth is when you deduct the two expenses from your income to see if there is anything left over. Don’t panic if it is a negative number – it is far better to discover this out now, rather than building up credit card debt later. Most people comment somewhere along this process, “Oh, so that is where my money is going. I had no idea I spent so much on that!”

Seeing all the numbers in black & white can help you prioritize (and negotiate with all the other spenders in the family). From this beginning budget, you can start to set monthly targets for spending categories, you can focus on reducing the largest expenses, and find areas where you should start doing some price-comparison shopping. And did I mention that saving a 5-15% of your income should be an additional fixed expense? Yes, you need to pay yourself first!

Having a budget is the critical first tool in managing your money. Wielding this tool allows you to finally start making financial decisions based on the facts instead of fiction. You can plan for expenses instead of being caught by surprise. And most importantly, figure out how to move forward with goals like a big vacation, a new car, or investing.

Develop a Savings Plan

noreply@blogger.com (ayoenda) — Thu, 26 Jan 2012 09:00:02 PST

There are so many things that we teach our children that keep them on the right path throughout life. How to save money is one of the most important lessons that parents teach their children. Teach your children about finances by opening an account and setting money aside. They'll learn about patience, interest and saving.

It's easy to forget, or ignore, the need to save. We all too often are saying that there isn't enough money to put into savings and we'll do it later. But if there isn't enough money to put into savings, is there enough money if there is an emergency. By having a savings plan, you can keep an emergency from destroying your finances.

Savings can be anything from a simple savings account to bonds and retirement plans. You may be saving for emergencies, college, a new home or for retirement. Or even for all of the above! No matter what your goal is, there is a savings plan that will fit your needs. Not all types of savings are going to work for you. You have to find the plan that fits your own personal financial needs.

What makes saving money just a wonderful experience is interest. You aren't just saving your money, your actually letting it grow. Your money is making more money. How does this work?

When you put money in a savings account, certificate of deposit (CD) or money market account, you are basically lending the money to the bank. The bank will use your money to make loans to other customers. They are borrowing money from you and paying you interest, while someone pays them interest on the money they have borrowed from the bank.

Banks charge higher interest rates on loans so that they can pay your interest, plus make their own profits.

Interest can seem like a complicated math problem, but it isn't hard to understand. Most banks will talk about both "rate" and "yield."

For example, a $10,000 CD with a 5% annual interest rate (APR) will also have an annual percentage yield number (APY) that is a higher number. The difference between the APR and the APY depends on how frequently the interest is paid, and in what form.

If the interest is paid annually at a rate of 5%, the $10,000 investment with earn $500. Simply multiply the investment amount by the APR to determine the interest paid. When the interest is paid annually, the rate and yield are the same.

The yield goes up as interest is paid more frequently. The interest begins to earn interest along with the original investment. When the 5% CD is paid twice a year, in six months the interest payment is $250. We figure this by multiplying the original investment by the interest rate for half a year, or 2.5%. The $250 in interest will earn $6.25 in interest over the next six months, adding $256.25 at the next six month mark. Compound interest is starting to take over.

In the first scenario, the CD earned $500 in interest in one year. The rate and yield is at 5%. The second CD earned $506.25. The rate is still at 5%, but the yield has increased to 5.06%. It may not seem like a lot, but over time it keeps building up. When shopping around for savings plans, look at both rates and yields.

Creating Surplus Cash For Savings and Investments

noreply@blogger.com (ayoenda) — Wed, 25 Jan 2012 09:00:03 PST

You know you need to be saving money but you never seem to have enough at the end of the month or worse, you are further in debt.

Living below your means is more a matter of self-discipline. A few adjustments here and there could be all it takes to have the necessary funds available for saving and investing. Some mutual funds can be opened up for as little as $200 with minimum contributions around $50.

Here’s a list of ways to save money by spending less.

Open up bank accounts that have little or no service fees. Keep a cushion to avoid accidental bounced checks. These can eat you alive. Be sure to maintain your minimum balance to avoid service charges.
Try to avoid banks that charge you a transaction fee for using their debit cards. If you have no choice, plan how much money you will need in a given period and then withdraw it all at once to avoid too many transaction fees.
Compare credit cards. Look for the ones that have little or no annual fees. It’s not too hard to find those with no annual fee.
Avoid specialty store charge cards as they often have interest rates six or seven points higher than major credit cards.
Never choose a card based solely on incentives or reward programs. These include auto reward points and air travel miles. These cards may lead you to spend more money over time than you can afford.
Most importantly, avoid unnecessary interest charges by paying off the complete monthly balance. You can avoid hundreds of dollars in interest expenses on an annual basis.
When you buy a car, consider buying one that is one to three years old. A one-year old car will be about 20% to 30% less than a new car. A three-year old car is a good buy because it could be around half the price of a new car. A car depreciates the most in its first three years. After that the depreciation levels off and it will lose less of its value.
Another good saving when buying a used car is you will pay less for the insurance.
When going on vacation, consider staying in your home state instead of long distance trips or even international travel. It's often cheaper to travel within your own borders, that way, you avoid visa and passport costs, border hassles, currency exchanges, tropical shots, medication, and additional health insurance. Frequently, people travel thousands of miles to see sights not nearly as spectacular as what's next door.
You should consider off-season vacations. Travel at a time when everyone else is at work or school, and the staff will actually be glad to see you. You may also save 50% or more on the usual travel expenses.
Avoid large cities and tourist traps; you'll save a ton by avoiding these places, where you pay more to eat, drink, sleep, and travel. If you do decide to visit a big city, consider accommodations in a smaller town close by.
If you have a lot of credit card debt at high rates, look into consolidating your debt at a lower rate.
Refrain from making impulse purchases. Exercise self-discipline.
Refinance your mortgage or debt at a lower rate.
Refinance your car loan at a lower rate.
Shop around for cheaper car insurance rates. There can be a big difference.
Lower your phone bill by using self-control on long distance calling.
Use a phone card for long distance or international calls.
Use coupons when you shop.
Don't buy things just because they are on sale.
Wait for things to go on sale before buying them. Keep a record of when things go on sale. Some items will seasonally go on sale. Ask stores when certain things will go on sale.
Buy generic, or non-name brand merchandise. Most times the quality is just as good.
Stop smoking. This habit is extremely expensive.
Contribute the maximum each year to your 401K or to an IRA.
Remember, paying down debt is also a way to save money. If you can make extra payments on your mortgage or go for a 15 year mortgage instead of a 30 year mortgage. The savings are enormous.
Reduce the number of times you eat out. Oftentimes eating out at a restaurant involves paying a lot of money for over-priced and over-sized meals. For healthy meals and to save money, eat at home.
Watch videos or DVDs at home instead of going to the movies. Pop your own popcorn instead of paying a lot for theater popcorn.
Evaluate your entertainment and recreational activities. Many are very expensive to participate in. There are many others that are just as fun and entertaining that are at the fraction of the cost.
Don't try to compete with your friends and neighbors. Sometimes, an apparent prosperous lifestyle can be an illusion. Those illusions come with a lot of debt. It’s much better to have peace of mind.

Be alert. There are always ways to save money. Soon you will yourself with money you never knew you had. The key is to put that money to work for you instead of spending it.

Creating Savings From What You Already Have

noreply@blogger.com (ayoenda) — Tue, 24 Jan 2012 09:00:05 PST

Most people, even those without debt, have a hard time saving money.

The plain truth is that most people will spend all of their money every month. They grow to become used to this spending level. It is very, very difficult not to do this.

Financial advisors say it over and over again -- you have to pay yourself first. It is the truth. Those of you with 401(k)s don't miss that money being automatically taken out of your paycheck. You never see it, so you don't miss it. That is the idea of paying yourself first. If possible, have your employer deposit a portion of your paycheck each month into your savings account. Or perhaps your bank will automatically withdraw that amount from your checking to your savings each month. You never see the money and you don't have to make any effort to save. It is perfect.

If you pay yourself first, you won't have a chance to spend the money. When you sit down to write bills out, don't pay the mortgage first. Pay your savings and then pay your bills. See, most people pay their mortgage, cars and other loans first. Then they pay the electric and water. Then they pay what they can on their credit cards. Whatever is left over is spent on living, gas and food.

Then there is nothing left to save. If you wait to pay your savings last, you probably won't pay it. You must pay yourself first. Write a check to your savings first, then pay the bills.

We lose a lot of money in just pennies each month. One of the best ways that my husband and I save money is to never spend our change. In fact, every night we dump out our wallets. Anything less than a ten goes in the money jar. It is surprising how in just a month, that money really accumulates. We've used the money like a small emergency fund. We grocery shop on it when money is tight or we treat ourselves to a nice evening out. It is an easy way to save.

Another version of this is to put the change you get back from any drive-in in an envelope in your glove box. Do this whether the change is one dollar or ten dollars. When you clean out your vehicle, you will be surprised at how much has accumulated. In fact, it could buy you a tank of gas every once in a while.

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. Nothing really went into savings. From now on, when you save $15 on groceries, put that $15 in your savings account. When you don't buy a new sweater because you know you need to save, put the cost of that sweater into your savings.

Saving money isn't that hard. It is simply a habit that has to be learned. Experts say it takes two weeks to make an action a habit. So start today, in two weeks it will be easy.

Controlling Your Finances

noreply@blogger.com (ayoenda) — Mon, 23 Jan 2012 09:00:08 PST

A person's finances are one thing that determines the way they live. It determines your lifestyle such as what type of car you drive or the area in which you live. Controlling your finances is a very important part of a person's life.

Since just about everyone has a checking account it is important to know how to keep that account balanced properly. If you do not keep a close eye on your account then it could end up costing you a lot of extra money. If you write one check that you do not have enough to cover then it could spiral way out of control.

You will be charged a fee for the insufficient funds which may cause another check to be returned which causes more fees to be added on. This is one reason for keeping a close eye on your checking account. It really isn't as hard as it may seem you just need to remember to keep a record of everything you spend no matter how small. Review your statements each month and compare them to your records.

The next big step that most people take is by receiving credit cards. Yes it is nice to be able to purchase items on credit, but you still have to pay for that luxury and with an added interest fee. Therefore, you need to be careful how you use your cards. This is very important when it comes to controlling your finances. Try to limit them to purchases that can be paid off within the thirty day period to avoid high interest rates. If you do owe a large balance then try to pay extra each month, not just the minimum payment. The more you pay the more money actually goes towards the balance saving you on interest. .

There are also a lot of smaller ways that you can help in controlling your finances. For example, be careful and control any shopping sprees you may be thinking about, even if it is for those Christmas presents. Phone bills can sometime be quite a shock so if you are making long distance calls keep a record so you will know how long you talk and how often. The same thing goes for cell phones, so be careful not to go over your minutes as this can add up very quickly.

Don't go in debt for large items such as automobiles if you are not financial able to afford the payments. Be careful when investing in stocks and bonds make sure you understand exactly what you are investing in and the amount of risk involved. Following these tips can help you in controlling your finances.

Choosing A High Interest Savings Account

noreply@blogger.com (ayoenda) — Sat, 21 Jan 2012 09:00:02 PST

It's always prudent to save for a rainy day, and many people with spare cash available prefer the security of placing it in a savings account to the more risky but potentially more profitable choice of other investments such as the stock market. Choosing a savings account would at first glance seem to be as simple as going for the one with the highest interest rate, but there are several other factors to take into account too.

The first choice to make is between opening an account with a high street bank, or going direct. High street banks give you the advantage of being able to manage your account with face to face contact with real people, and the ability to deposit cash and cheque easily. However, they have not historically offered the most competitive rates of interest, although this is changing slowly.

Direct savings accounts are operated solely online, by telephone, and by post with no possibility of visiting a bank branch to conduct business. This means they are cheaper to run for the banks, with less admin and staff costs, and so in turn they are willing to offer more attractive interest rates. Indeed, when internet direct savings accounts first appeared, some of them offered ten times the interest of a typical branch-based account, although the gap has narrowed considerably over the years.

The next choice to make is which type of savings account to go for. Amongst all the other options and features available, there are two basic kinds of account: regular savings, and deposit savings. With a regular saver account, you commit to depositing a fixed amount every month for a certain period, often a year. Most accounts will let you pay in more than this if you are able to, but if you fall below the minimum amount in a month you will likely forfeit interest payments for that month. With a deposit account there are no such restrictions - you can put in as much or as little as you want, whenever you want. On the whole, a regular saver account will offer better interest rates at the price of less flexibility.

Another factor that will affect the rate of interest you can earn is the level of access to your money you need. Basically, you can either choose a fully flexible account which lets you deposit and withdraw funds whenever you want with no charges or penalty, or a more restricted access account which might require 30, 60, or 90 days notice before withdrawals can be made without incurring an interest penalty. Some accounts go further, locking your money in for a period of years, but these accounts are more like bonds than savings accounts, and are outside the scope of this article.

In general, you pay a price for flexibility, and so accounts with more access restrictions will pay a better rate, and so are perhaps more suited to long term investments than simply serving as a way of earning interest on spare cash that might still be needed at some point.

The other main aspect to consider is how the interest is paid. Most accounts will pay your interest in one installment, once each year. Some, however, will credit your interest on a monthly basis, opening up the possibility of earning compound interest (i.e. where you earn interest on your previously earned interest). Nothing in the financial world is free though, so once again the flexibility of more frequent interest payments will be paid for with a lower rate.

As we have seen, there is more to choosing a savings account than simply comparing basic interest rates. Of course, you want to earn as much interest as possible, but locking yourself into an unsuitable account might not be the best use of your money.

Buying a Car and Saving Money

noreply@blogger.com (ayoenda) — Fri, 20 Jan 2012 09:00:01 PST

Aside from their home, most Americans will spend more money on their car than on anything else they will buy. And yet, when it comes time to buy that car, most people spend far more time researching the engine, the stereo and the moon roof than they will the finances of the purchase. By failing to do a little homework on the finances, many people end up spending more money for their car, truck or van than they otherwise might.

A little bit of work ahead of time can help you save quite a bit of money on your car purchase. Here are some tips that might help:

Check your credit report
A few months before you decide to buy you should check your credit report for errors. Mistakes on your report could adversely affect your credit score, which will prevent you from obtaining financing at the lowest possible interest rate. While you are checking your credit report, check your credit score, too. That way you can avoid an occasional scam where the salesman tries to trick you into paying a higher rate by falsely claiming that your credit score is too low. You can't fall for that one if you know your score.

Arrange your financing in advance
While you can sometimes get competitive financing from the dealer, you may do better at your bank, credit union, or online lender. Check with those sources ahead of time to find the best possible deal.

Watch for factory incentives
Sometimes, the manufacturer will offer inexpensive financing. In the past, such deals have gone as low as 0%. If such a deal is available, no bank or credit union will be able to match it, so keep an eye out for such incentives. Cash back bonuses are often available from the manufacturer, too, and those can be applied to your down payment.

Check the pricing
A number of Websites, such as Edmunds.com, offer information on pricing. With that information, you can negotiate the best possible deal.

Ponder the extras
Undercoat? Extended warranty? These are things you may wish to consider before the salesman asks you if you want to buy them. Whether you do or not is your own choice, but you don't want to get caught with the extra expenses if these are things you do not need.

Buying a car need not be a complicated procedure, but it works best if you know ahead of time how you intend to go about it. The better your preparation, the less harrowing your experience of buying a new car will be.

Best Money Market Account

noreply@blogger.com (ayoenda) — Thu, 19 Jan 2012 09:00:04 PST

When you are looking for a good safe way to invest your money you should look into a money market account. They are a great way to maximize your savings potential without any risk. Many people don't understand the way money market accounts work and therefore they don't know how to choose the best money market account for their financial situation.

What is a Money Market Account?

A money market account is an account that works like both a checking and savings account. They offer you the ability to earn a much higher rate of interest then a standard savings account. This is because you only have the ability to withdraw money from your account six times a month, this is standard and every financial institution has the same rules. You can either write a check or a debit card to access your money.

What to Look for in a Money Market Account

One of the first things you should find out when searching for the best money market account is if the financial institution that you are going to use is FDIC insured. This is basically saying that the federal government is insuring your money, so if your bank, for whatever reason, goes out of business your money is not lost, you will get it back.

Another important factor is monthly maintenance fees that some financial institutions have. Many of them will waive all monthly fees if you keep a certain minimum balance each month and if you look around, especially on the internet, you can find many of them that have no fees and have require no minimum balance requirements. This is especially helpful if you are just beginning to start saving, the last thing you need is having your savings eaten up by fees.

Opening balances vary from institution to institution. Almost every money market account has a minimum opening requirement. However, they run the gamut, many require only $50 to open an account but as you get the better interest rates you will often have higher opening balance requirements, in fact several of them get up to the $5,000 mark.

Where to Find the Best Money Market Accounts

Until recently the only place to open a money market account was to go to a local bank. With the internet becoming so prevalent in society, lending institutions have begun to use it to recruit new customers. Some of the best money market accounts are available by internet. They don't have the high expensive of having lots of buildings to maintain so they are able to offer higher interest rates.

The only real difference between using an internet bank and a local branch is how you make your deposit, you will make your deposit two ways you can have your employer do a direct deposit or you can mail them a deposit. It is recommended that when you mail your deposits you send them certified.

Having a money market account is one of the best ways to save your money with no risks like stocks or bonds. You keep your money liquid and earn a great interest rated so take some time and find the best money market account for you and your financial circumstances.

Basic Investing Rules

noreply@blogger.com (ayoenda) — Wed, 18 Jan 2012 09:00:07 PST

Investing your money can be a great way to ensure your financial future. With the right investment choices, you can be sure to have money for emergencies, to put towards the education of your children, and to have available when the time comes for you to retire. There is a key word in the preceding phrase however- “right”. If you make the wrong investment choices, you may just end up where you started or worse, flat broke. Most people who invest wisely by making the right decisions with their money follow the same basic investment pattern, although they may define it by another name. It might be that you are the cynical type who chooses to believe that the basic rules could not possibly be as easy as they seem, in an area that seems so complex. It is true. However, that these rules have withstood the test of time.

First of all, make sure that the money you choose to invest is indeed earmarked for the purpose. As in any form of gambling, there is nothing to be gained and everything to be lost when it comes to investing. Do not put up money that you cannot afford to lose should the market take a downturn.

One rule that people seem to refuse to apply in any area of their lives, including the world of investing, is lean not on your own understanding. Most of the time, this is the result of people balking at entrusting another person with their money, believing that with a little understanding they can work the market themselves. This reasoning is fundamentally flawed. In the first place, most people will not be able to begin to unravel the complicated graphs, pie charts, and statistics by which the investment world relates its information. In order to understand what the numbers mean, you will need to have some basic training. There may come a time after you have had some experience in the market that you will be able to make sound decisions on your own, but the initial get-your-feet-wet phase is not the time to attempt it. Check the background of the advisor you choose, as there are a lot of brokers out there looking for a quick fleece. The best brokers will have years of experience, a variety of investment backgrounds, and will probably cost you much less than you might think.

Think long term. Unless you invest millions of dollars initially, it will take time for your investments to mature and begin to accumulate substantial gains. The best investments are proven over time, and thus it is best to place your funds in long term choices. The details of this are plain- it is best to forget about this money in terms of a cash fall back, at least for a number of years.

Diversification is an oft-flogged truism of the investment world. A good portfolio will include cash and cash equivalents (GICs, fixed annuities), growth investments (stocks), and growth and income investments such as mutual funds. Diversification ensures that you do not have all your eggs in one basket should any part of the market experience a downturn. Note that diversification means not only investing in several areas, but also making sure that no one area contains a disproportionate percentage of your funds.

Bankruptcy: Tips To Avoid It

noreply@blogger.com (ayoenda) — Tue, 17 Jan 2012 09:00:03 PST

Although it may seem like an easy solution to major financial difficulties, it is best to avoid bankruptcy at all cost. There are many reasons for avoiding bankruptcy and many tips for helping those in financial difficulty avoid resorting to bankruptcy. Before beginning to consider bankruptcy, it is best to weigh the negative consequences.

Reasons for avoiding bankruptcy include:

Credit Record
Once a party has filed for bankruptcy, this will stay on their record for ten years. With the easy access to credit checks, having bankruptcy on a credit report will undoubtedly make it difficult for parties to receive loans and credit. Even if creditors will allow for limited credit with bankruptcy on the record, extensive explanations are required and, without a doubt, the debtor will be looking at high interest rates and credit fees.

Loss of property
Although not all types of bankruptcy call for liquidation of property, many of the eight types of bankruptcy in the United States will call for some type of repossession of assets. If the banks find that there is anything unnecessary for living, these items will most likely be seized in order to pay for debts and bankruptcy expenses. Chapter 7, or complete bankruptcy, will even require that major purchases, such as a home or excess cars be repossessed.

Continued financial difficulty
Despite societal beliefs that bankruptcy will get you on the right track, bankruptcy can actually add to financial difficulty for years to come. This may include closure of bank and credit accounts, loss of a job or closing of a business, and inability to continue acquiring credit. Keep in mind while bankruptcy may seem to suggest a "clean slate", there are often debts that will still have to be paid, such as alimony, child support or court judgment costs.

With these negative consequences in mind, it is then necessary to consider possible ways that an individual or business can avoid bankruptcy in the near future:

Debt Consolidation
With rising bankruptcy proceedings in the United States, more debt consolidation companies have come to light. These companies can help debtors to examine current loans and credit debt against available income and will come up with a reasonable monthly payment that incorporates all of these debts. This helps the debtor, who usually feels overwhelmed having to make choices about which debt to pay each month. The debt consolidation company will also help the debtor set up a reasonable time frame to pay off these debts, giving the debtor something to look forward to in the long run.

Get rid of potential debt problems
With the easy access to credit cards and credit accounts at department stores, it is easy to become swallowed up by overwhelming credit. Especially when money runs low, it is easy to pay cash for the bills due now and then continue racking up the credit card bills for later. One of the first steps in avoiding bankruptcy is to get rid of that credit yourself. Cut up the credit card and call the credit card company to cancel that account. If you can’t afford it out of the bank account, then you can’t have it to spend! This is better than having nothing at all by having things repossessed through bankruptcy.

Speak with debt companies
The first instinct when unable to pay bills on time is to simply hide from the debt companies who continue to call or send bills. Unfortunately, many in debt do not recognize that these companies can actually help with different payment plans! As well, many student loan corporations, mortgage companies and credit card companies will allow for forbearances of loans. Forbearances are a deferment or reduction of the loan because of financial hardship and allows for an individual to get back on their feet.

Plan a budget
A simple step that many debtors forget to try is a weekly or monthly budget that calculates debt ratio to income. This is one of the steps that many debt consolidation companies will do for you, but it can easily be done by yourself with pen and paper or with a Microsoft Excel spreadsheet. Take time to sit down, write out all of the bills that come in each month and remember to include all expenditures such as gas and groceries. From here you can determine how much money you have that needs to go to bill companies and how much is left for other spending.

Balancing A Budget And Saving Money

noreply@blogger.com (ayoenda) — Mon, 16 Jan 2012 09:00:05 PST

Your finances are your business. But unfortunately it seems like you need an accountant to help you understand and decode the mysteries of balancing a budget or saving money. At some point you might need to get a loan. When that day comes, this article can help you understand which is the right one to get.

An unsecured loan is simply a loan you get based on your good name and your credit rating. Often the interest rates are higher on an unsecured loan than on a secured loan because the risk is higher to the lending institution. If, for some reason, you are unable to pay back the loan and the lending institution does not get any money back. However, your good name and your credit rating are potentially ruined.

On the other hand, a secured loan is a low you get when you put up some assets. The advantage of a secured loan is that you often get more money at a lower interest rate for longer repayment period that you would with an unsecured loan. This is because you have some assets to backup your loan. The lending institution prefers this kind of loan because if you find yourself unable to make payments, they can see your assets as an alternative form of payment. Because the risk to them is diminished they are able to provide you with more attractive loans at a better rate.

You might think of a mortgage as a secured loan. The bank lends you money to buy a home and they use the home as a way to back up the loan. If you do not make your mortgage payments, the bank can seize your house.

Or you can think of a secured loan as a pawn shop that lends you the money you want but lets you still use the goods you pawned!

So which one is the right one for you? It’s a tough decision to make. In most cases, a secured loan will get you a better rate, so you just might prefer that.

However, perhaps you don’t have any assets available, or you don’t want to risk the seizure of certain assets if you are unable to make payments. In this case, you just might not mind paying a little more for the benefit of having an unsecured loan.

Both unsecured and secured loans are good options to have when you are doing your financial planning. You can use them to consolidate your outstanding bills, leverage your home investments, or get the things you need and want. And, with the choices between unsecured and secured loans, you have the benefit of being in total control of your financial destiny!

A Money Saving Exercise

noreply@blogger.com (ayoenda) — Sat, 14 Jan 2012 09:00:03 PST

There is a simple money saving exercise that everyone should do at least once in their lives. It is ultimately one of the best ways to save money, because it is not about pinching pennies, but about discovering what you really want and getting it. It is so simple you may hesitate to try it. Just try it. Here it is:

List everything that you have spent money on, are currently spending money on, or might spend money on.

Don't just read this and think of a few things. Take the time to actually write it all down. Review your bank statements if you have to, in order to remember and include everything.

Now go through the list, and carefully consider each item. Take the most time on the big items - past, present and future possibilities. If your timeshare on the beach is worth half what you paid, costs $1,000 per year in expenses, and is rarely used, you need to learn from that - not to punish yourself, but to have a richer life.

If you think honestly about the number of times you will use that Recreational Vehicle, and the cost, it may be $250 for each day of use. That's okay if that is worth it to you, but maybe you really would enjoy $100 hotels more. Or maybe you can rent an RV for less overall cost, thus freeing up money for other important goals.

You see, saving money isn't about sacrifice. We all are aware of the scrooges in life that pinch their pennies, bank the savings, and then do nothing with it. The point should be to save money in one area of life so you can use it in ways that make your whole life richer.

Suppose you notice you're spending $8 per month on subscriptions to magazine you don't read, or on insurance for a motorcycle you almost never ride? Cancel the subscriptions or sell the
motorcycle, and what have you lost? Is it a big deal? What will that $8 get you instead? Bank it for ten years, and use the $1200 to take a second honeymoon.

Use it to pay for a day off work once a year, to spend with the kids.
Invest it, to have an extra $50 per month during your retirement years.
Buy six good books a year, to learn something new.
Make banana splits for the family once a month.
Give $100 per year to a worthy cause.

$8 per month can do a lot if used wisely. Imagine what you could do if you stopped wasting $200 per month. That's why it is so important to discover what you really want - and what you don't want. This is one of the most intelligent ways to save money.