Smart Money Management

How to Reduce Your Mortgage Payment

noreply@blogger.com (Stephen Lau) — Mon, 27 Sep 2010 14:02:00 +0000

If you are a homeowner, you may want to reduce your monthly mortgage payment. Yes, you can do it. In this recession, your home value has plummeted, and you may have a huge personal debt, such as credit cards. You don’t want to lose your home to foreclosure. But every month, you have many bills to pay, and your mortgage payment may be taking a financial toll on you and your family, taking a big chunk out of your hard-earned monthly income. What can you do? Foreclosure may be a way out, but it is not an option for you , if you could help it.

How to save your home and reduce your mortgage payment?

You can kill two birds with one stone by negotiating with your lender. Can you do that? Yes, you can do it, and you can do it on your own. Does it sound too good to be true?

Don’t default your loan—don’t even think of it! I tell you what: there is a way out of your financial woes, if your mortgage loan is based on one the following:

(1) 1st, 2nd, or even 3rd mortgage

(2) Adjustable Rate Mortgage (ARM)

(3) Fixed Rate Loan

(4) Negative Amortization Loan (i.e. paying only interest without paying the principal)

(4) Investment, vacation, or rental properties

Simply negotiate with your lender to modify your loan, thereby reducing your monthly mortgage payment. That is how you can fix your mortgage problems by getting yourself the cheapest loan the fastest way. You owe it to yourself. You don’t even need a lawyer to submit your loan modification, and you can save yourself hundreds of dollars on legal fees. Simply do it yourself! Yes, do it yourself.

But how?

All you need is to have the know-how to write an application to your lender, negotiating a reduction on your monthly mortgage payment. Don’t even seek the help of the so-called professionals: they just rip you off because they may charge you a few hundred, if not thousand, dollars just for the service. America is a free country, and as such, there are many things you can do-it-yourself. Uncle Sam always sees to it that there is always another option—a D-I-Y—available to the public.

Due to the bailout to the tune of $2 trillion dollars, banks are more than willing to lower your mortgage rates to bail you out of foreclosure. Yes, you can modify your mortgage loan, and you can do it on your own.

Of course, to qualify for loan modification, you need to meet one of the criteria of loss of income, death in the family, or a debt ratio of 31 to 50 percent. On top of that, your loan must be more than one year old, and you must have the means to pay the modified mortgage.

Is it difficult to write the loan modification request?

Not really. What you need is the details of the process, and what to say and what not to say. For more information, go to Loan Modification.

Stephen Lau

Copyright © 2010 by Stephen Lau

How to Save a Lot on Vacation

noreply@blogger.com (Stephen Lau) — Wed, 21 Apr 2010 11:26:00 +0000

In these stressful economic times, you probably need a vacation more than anything else. Financial stress is not good for your long-term health. But going on a vacation may become yet another financial stress to your current tight budget.

Money being scarce as it is right now, you’ve probably scratched those plans for a Disney family vacation, or that trip to the Turkish baths and dazzling bazaars in Istanbul. Don't worry! You can save a lot on vacation if you have the know-how. You can make your vacation affordable and within your budget if you plan ahead. Yes, you can still make fun and affordable travel plans in the coming summer.

Start at the Internet. Go straight to Kaya. Pass Travelocity, Expedia and all those other travel sites. At Kayak, one search will compare prices from all those sites, including airfare, hotels and cruises as well as package deals. Or, if you like gambling, go to Las Vegas and try Priceline, where you can “negotiate” the price you pay for airfare, car rentals and hotels.

Last-minute deals may be good deals. If you’re the daring type and you’re not set on a particular destination, you can find some great bargains if you book last minute and pick up surplus hotel rooms or canceled cabins on cruises. See what you can find at SkyAuction, Moments-Notice or LastMinute. You may also find some real bargains at cheapcaribbean.com.

Booking a package is the way to travel these days. By bundling air and hotel and even car rental you can really save a lot, especially on last-minute bookings.

Eating is one of the major expenses on vacation. Try bed and breakfast. Unlike the bed and breakfast in the bygone days with a basic bedroom where you shared a bathroom with other people, nowadays bed and breakfast lodging is not only affordable but more pleasant. In fact, bed and breakfast lodging can run the gamut of quality, location and price. Very often, bed and breakfaqst affords a cheaper alternative to standard hotels and can be found where no hotel chain would dare to go. So take a look at the options on bedandbreakfast.com.

If you are the take-risk type, you can go to hostels, where you may meet the young and the restless. Yes, why not go hostel! Hostels.com gives you a world of choices, which can indeed be very cheap. Normal lodging is dormer-style, though some properties now offer private rooms for families. Bathrooms, kitchens and laundries may still be communal, but the price is unbeatable.

The above are just suggestions that may have slipped your mind when you are thinking of the possibility of going on a vacation this summer, and worrying about the cost involved. Go ahead and plan your vacation! You deserve it!

Stephen Lau

An Economic Recession May Become An Opportunity

noreply@blogger.com (Stephen Lau) — Wed, 21 Apr 2010 01:09:00 +0000

There is a Chinese saying that you cannot assess a person's achievement until the coffin is nailed. Adversity may shape a man's character and bring out his very best. Likewise, an economic recession may become an opportunity for some who know how to ride the storm. Having problems in life is not a problem! Turn your problems into your opportunities!

Thomas Edison's teachers once said he was “too stupid to learn anything.” and he was fired from his first two jobs for being “non-productive.” Thomas Edison’s 1000 inventions came during the Panic of 1873 — 6 years — and the Long Depression — 23 years.

Albert Einstein did not speak until he was four years-old and did not read until he was seven. His parents thought he was “sub-normal,” and a teacher described him as “mentally slow, unsociable, and adrift forever in foolish dreams.” Yet Albert Einstein survived one Long Depression, three panics and Post World War I Recession.

The moral of the lesson is that a problem only becomes a "real" problem when you don't tackle it; an economic recession may become an opportunity if you see it as nobody else does. Of course, when an opportunity knocks, you have to work at it — just as Thomas Edison said: "One percent is inspiration, and ninety nine percent is perspiration."

To survive this recession, you need resources and imagination not only to survive but also to succeed.

Learn how to turn from Debt to Wealth.

Stephen Lau

Making Money By Blogging

noreply@blogger.com (Stephen Lau) — Mon, 19 Apr 2010 17:14:00 +0000

Blogging is becoming the fastest way to market a business on the internet, and it is huge. Unlike advertising, blogs create instant credibility because readers know that a blog usually has quality content that is newsworthy, so they trust the content.

With all the hard work you put into a blog to insure the content is high quality, you should be financially rewarded for your efforts. But according to David Risley, a six-figure income blogger, most bloggers make barely enough to buy a cup of coffee. David decided to change that situation by sharing his Six-Figure Blogger Blueprint Manual with selected people. . . . .Get a FREE copy of this !

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7 Smart Money Management Tips for Safe Shopping

noreply@blogger.com (Stephen Lau) — Mon, 19 Apr 2010 01:01:00 +0000

Use these 7 smart money management tips for safe shopping.

1 Try to use cash or a debit card instead of a credit card to keep from increasing your debt. If you use a credit card, pay off the balance as soon as your statement arrives.

2 When you do use a credit card, check your statement to see if it is a daily or monthly interest rate card. If it is a daily interest card, pay it off online as soon as the charge hits your card to stop the interest compounding every day until you do pay.

3 Never allow the cashier to leave your card lying on the counter where someone can read, or snap a photo of, the card information.

(I have a client who had someone use a cell phone to photograph their card when the cashier placed in face up on the counter rather than handing it back to my client, and then use my client’s card to wire money from Western Union to their brother in another state. I caught it when I saw the $600 charge and asked my client about the charge.)

4 If you are shopping online, use a Credit Card because it offers more protection for online shopping than debit cards.

If fraudulent charges are made with a debit card and you don’t report the activity within two days, you can be held liable for up to $500. On the other hand, if unauthorized purchases are made on your credit card, U.S. Federal law limits your liability to just $50, and in most cases the credit card issuer will waive that fee.

5 Check your card statement for fraudulent charges online or as soon as you receive it in the mail. You may face unlimited liability if you fail to report the fraudulent charge within 60 days of receiving of the statement that lists the fraudulent purchases.

6 When shopping online, make sure your computer has the latest virus and spy protection software.

7 When shopping online be sure to shop only on trusted and secure sites with https:// as the URL in the web address bar at the top of the screen. The “s” is the signal that the website is secure. You can also look for a closed padlock icon on the bottom of the screen in the shopping cart areas.

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Why We Need to Change Our Mindset on Spending

noreply@blogger.com (Stephen Lau) — Mon, 01 Mar 2010 15:20:00 +0000

We, Americans, have forgotten how to be thrifty, and about what the real core value of money is. Many of us, especially the younger generation, have grown accustomed to only the good times: for decades, we have enjoyed unprecedented economic prosperity that we have forgotten the financial woes of the Great Depression.

In spite of the recent busts and downturns, we are still spending like there is no tomorrow (especially our government), and we have forgotten how to be frugal. It is time we changed our mindset of reckless spending -- buying the things we don't need with the money we don't have, or bailing out corporations and banks that are "too big to fail."

The problem is that the little busts and downturns will not change our spending behavior. We may or may not have a big meltdown, but the little busts and downturns may go on indefinitely for decades until we change our spending pattern.

Japan is a case in point. In the 1980s, Japan's economy boomed, and bought up many American companies. The boom, very much like ours in the past decades, turned into a bubble, and, like all bubbles, it busted with a meltdown that was on a much smaller scale than ours. The Japanese government, like what the US government has been doing since our meltdown, tried to prevent banks and companies from failing with bailouts and economic stimulus plans. History is repeating itself: we are doing exactly what the Japanese were doing two decades ago -- preventing the bubble from busting. Unfortunately, nothing seemed to have worked for the Japanese; for the past two decades, Japan has not had any major economic catastrophe, but its economy stagnated, and everything deflated gradually and slowly, instead of the one-time catastrophic blow-up.

If a catastrophic meltdown in the US is not imminent, then it will be a protracted recession lasting for years, if not decades, just like Japan's decade-long recession. In 2009, the US national debt rose to more than $12.trillion. In the next ten years, the US debt is forecast to reach $25 trillion. And this debt does not include any funds needed to continue propping up a practically bankrupt financial system. The forecast also assumes optimistic growth in GDP, which is extremely unlikely, given the current spending habits of the Congress, and the two wars the country is involved in. Currently, US Federal debt is six times what it collects in tax revenue every year. No matter what, the debt can ever be repaid with normal money. In addition, with debt out of control, interest rates will rise steeply as a result of inflation. It is a wishful thinking that the US economy will improve anytime soon. If you think you will see the light at the end of the tunnel, think again! The worst is yet to come. The US will continue to print trillions of dollars worth of new government securities. But the buyers of these government securities might start to become scarce. The rest of the world may dump their holdings of US debt, which would result in the dollar dropping precipitously and interest rates rising substantially. The future does not bode well. What you can do is to change your mindset of spending: Save, save, and save for the future!

The first priority is debt elimination: Ultimate Debt Guide.

Next, you need to fix your bad credit, so as to save a lot: Debt Credit Repair.

Then, you need to supplement your regular income with an online business. For example, you can make money simply by tagging car license plates. It is an innovative data collection business: you collect, they sell, and it is FREE to join. Or you can also make money in shared advertising, in which the advertisers pay you, the viewers, and again it is FREE to join; for more information, go to my blog post "Profit from Shared Advertising."

Spend your time gainfully to make money, instead of spending money. Change your mindset of spending for a better future.

Stephen Lau

The World's Largest Economy Is Like A Scam

noreply@blogger.com (Stephen Lau) — Mon, 22 Feb 2010 12:52:00 +0000

The United States is the world's largest economy -- but it is operating like a scam. The US is printing money in the form of government bonds, which have no intrinsic value other than "faith" in the US government to continue to honor its debt. Nowadays, the demand for US Treasuries has decreased, so the US government has been funding a large portion of its newly issued debt by direct purchases from the Federal Reserve. What it means is that the Federal Reserve is creating money out of thin air so that it can be used to buy US bonds to bail out corporations that are "too big to fail." This reckless economic policy serves dual purposes: to boost up the demand for lack-luster US bonds; and to continue to pump cash into an ailing economy, hoping against hope that it will revive its stalling economic engine. The result of this reckless economic policy is mounting national debt. There will not be any relief anytime soon because the Congress does not show any indication of cutting down government spending, and there is no sign that the wars in Afghanistan and Iraq will end in the foreseeable future.

Of course, the US is not the only country with national debt exploding: for example, the United Kingdom's national debt is forecast to reach GBP 1.1 trillion by 2011, and Greece is already drowning in national debt that is impossible to be repaid.

The problem is that there is much too much debt across the globe. Remember, debt, if it keeps on mounting, is unsustainable -- just like a pyramid scam. At some point, there will be a breaking point. It is like Madoff's hedge fund, which relied on indefinite financing from investors in ordet to stay afloat -- it was doomed to end in tragedy, and it was just a matter of time.

In this precarious economic state across the globe, the bond markets are bound to crash sooner or later, and this will cause another economic tsunami of unimaginable magnitude, bringing down everything, including the once-almighty US dollar. When that happens, only precious metals, like gold, will survive.

How To Buy Gold Low shows you the strategies to invest wisely in gold to protect your assets from the economic uncertainties in the years ahead.

Stephen Lau

Profit from Shared Advertising

noreply@blogger.com (Stephen Lau) — Mon, 15 Feb 2010 12:50:00 +0000

In conventional advertising on the Internet, consumers are bombarded with ads -- some of the popups are annoying and won't even go away. The worse part of it is that they don't get paid!

However, there is now an innovative advertising -- shared advertising, in which consumers share the advertising revenue.

But why are advertisers willing to pay consumers? The answer is simple: shared advertising is targeted advertising -- which means the ads are targeting certain consumers based on their demographics. To most advertisers, this is cost effective. Why would they spend money on advertising products to consumers who may not be interested in the products, or may not even have the means to get them? In conventional advertising, ads are placed on the Internet based on key words or search words. To many advertisers, the information is inadequate in marketing their products. Therefore, they are willing to share part of their advertising cost with consumers, especially if they are willing to give some feedback on their ads. To advertisers, this is most cost effective. And that is how they have come up with the concept of shared advertising.

But how do advertisers get the demographic information from consumers without spending a fortune?

An ingenious program has come up with the idea of data collection (while keeping consumers anonymous), such as geographical location, age, ethnic background, income brackets, personal interests, etc. It is open to everybody, regardless of age or income. Consumers simply download the Internet search box of google, yahoo, etc. on their browsers. When they surf the web, they see not only the ads of Google or Yahoo, but also the ads of the advertisers who have participated in the program. For one thing, this would give consumers more options in their Internet search, and, for another, these ads are more "appropriate" because they are based on their demographics. In addition, consumers can choose when, where, and how often to view these targeted ads, and get paid for their efforts. Of course, viewing and reviewing these targeted ads may not bring them a fortune. But the best part of it is that consumers can tag their friends, who tag their friends, and thus creating a viral membership worldwide -- and they also get paid from each other's efforts.

The concept of shared advertising is ingenious. It is cost effective, and lucrative for consumers, who are willing to invite their friends, because it is absolutely free to join, and the more they invite, the more they can profit from the shared advertising..

Why not enjoy the web and get paid while doing it!

For more information, visit: http://joini5.com/longevity

Stephen Lau

Is the Market Going Up or Down?

noreply@blogger.com (Stephen Lau) — Sat, 06 Feb 2010 22:31:00 +0000

The Dow hit a low of 6,547 on March 9th 2009, and then it slowly -- or rather steadily -- went up again to 10,725 on January 19, 2010. Then, it began its dedcline again.

The question: Is the Market going up or down?

Most financial observers believe that the 6,547 was the bottom of the current bear market movement, and that the current correction is just paving the way for the recovery over the long run. Why? It is because many still believe that the US financial system is still relatively sound and healthy, and that the banking crisis and liquidity crisis are merely hiccups that will not strangle the economy. With that belief, after the current correction, the Market would then go back to its bullish trend.

Another question: Could the Market be on its current decline to the March 9 low and beyond?

Remember, even at 6,547 the Dow had lost only about half of its value, and the P/E ratios were still high compared to major bear market bottoms.

The economic indicators are mixed. For example, in the housing market, prices are rising in some areas, but so are the inventories. The housing market is still slow. The housing market can be dragged down again by inventories, unemploymet, and another economic crisis. People who want to buy houses are looking for bargains, and those sellers who can afford to wait a while will avail themselves of every positive sign to get rid of their properties. As a result, depressing home prices could drag on for many years ahead.

Then, there is the problem of debt -- that has to be resolved somehow and sometime. Hyperinflation could do the trick to wipe out the debt, but that would come with a price -- and a great price at that! Again, hyperinflation might not happen anytime soon: the present deflation could go on for many years before inflation returns with a vengeance.

Both the current Federal spending like there is no tomorrow, and the mindset of bailouts and stimulus plans do not bode well for economic recovery. If a correction is needed, then there should be a correction and there will be one. Any attempt to defer it would be unrealistic, and hoping against hope is only self-delusional.

Forex Megadroid Robot is a state-of-the-art system that shows you how to make money, irrespective of which direction the Market goes, because it looks into the immediate future with 95.82% accuracy! Get the full details!

Stephen Lau

Making Money Online

noreply@blogger.com (Stephen Lau) — Mon, 01 Feb 2010 12:09:00 +0000

In this dreary economic environment, many, who are out of employment, begin to look for opportunities on the Internet. Scams are abundant, ready to lure those who look for get-rich-quick programs.

If you want to make money online, you must have the following qualities:

(1) You must treat your online business as your career. You may begin part-time, but you must be prepared to put in your time and your effort. Remember, there is no free lunch.

(2) You must have the minimum computer skills, such as going online or sending an email. Having your own blog or website is an advantage, but not an absolute requirement. Anyway, as you proceed with your online business, you will learn to acquire more computer skills as needed.

(3) You must be ready to learn. Making money on line is a learning process. Nobody is born with that knowledge, which has to be acquired and assimilated. Making money online requires knowledge, because the opportunities are many, and you have to know what is right for you. And you may not do it right the first time: it is a matter of trial and error, and you learn from your mistakes.

(4) You must be confident in yourself -- believing that you can do it. Nothing is this world is impossible, if you put your mind on it.

(5) You must be patient. Creating traffic takes time, and patience is a virtue in making money online. In addition, you must have perseverance. The road to succes is never smooth and straightforward: you must be prepared for stumbling blocks along the journey.

One of the most popular online opportunities is to become an affiliate.

So, what is an affiliate, and how does an affiliate make money online?

An affiliate is a sales person. Unlike the conventional selling, an affiliate does not have to make cold calls or direct contacts with customers. An affiliate earns a commission for generating sales, leads, and/or clicks for merchants on their websites. There are literally millions of merchants who have to sell their products online, and they need affiliates to direct customers to their websites. Directing visitors to these websites is what an affiliate does -- which can be done through a blog, a website, an email, advertising, word-of-mouth promotion, or just about anything you can think of. Just be creative, and the sky is the limit!

So, affiliate marketing sounds simple? Not really!

(1) You need to find your own niche -- that is, what you would like to do, and what you are good at doing. You need to find the right products, and the right merchants.

(2) You need to explore different ways of promoting the merchants and their products, and find out what works or doesn't work for you.

(3) Above all, you need a mentor -- someone who can show you some concrete examples of what he or she does, and how he or she does it. In other words, you need someone who can literally hold your hands and walk you through the whole process.

The Super Affiliate Hanbook is one of the most comprehensive books on affiliate marketing. I myself have been using it as a bible since I took on affiliate marketing. Rosalind Gardner is a recognized super affiliate herself, and in her 236-page book, she teaches by example, showing you in detail every step to success in affiliate marketing.

Stephen Lau

Inflation Will be Back with a Vengeance!

noreply@blogger.com (Stephen Lau) — Mon, 25 Jan 2010 11:25:00 +0000

Inflation is a deliberate and consorted attempt by central banks and world goverments to increase the amount of money circulated and to balloon debt out of proportion in order to meet certain financial obligations or political needs.

Inflation is a way of robbing the public by devaluating the currencies -- not instantaneously but at a deferred date. Look at inflation as an insidious way of taxing -- or swindling -- the public by governments.

Why do you save? You save for future needs. But saving won't save you when inflation comes back with a vengeance. For example, you want to save $300 a month for your child's college education in a couple of years down the road. Say, you automatically put away $300 a month in a savings account to pay for your child's college education tuition. In five years, you will have saved to the tune of $20,000 with interest accrued. If you are thinking that the amount saved may be enough to pay for a year's tuition, think again!. In five years, your $20,000 may just be sufficient to pay for the books, if inflation comes back with a vengeance. In other words, you hard-earned and well-saved money has been shortchanged. This is what inflation is all about.

Inflation distorts the economy: giving a false picture of the overall health of the economy. For example, if an individual is broke, he or she will have to cut down on the spending due to lack of cash. However, a goverment can still spend freely like there is no tomorrow as long as it can have access to its printing press, and as long as other countries are still accepting its currency. This is exactly what the US government is currently doing. Due to the fact that the US dollar is the world's currency, and there is no other currency capable of replacing it any time soon, the US government continues to print money to meet its worldwide commitments, such as the wars against terrorists. Back home, the US government is incurring mountains of debt from its finacial bailouts and economic stimulus plans. In short, the US is increasing its money supply at a reckless and dangerous rate.

What does inflation do to the public at large?

It is not that the public are not unaware of the potential danger of inflation. Despite the efforts of central banks and governments to curb inflation by giving false economic numbers and inflation-suppression indicators, the general public know the loss of their purchasing power. So, here are the possible scenarios:

Some continue to save -- racing against the clock, and hoping against hope that their savings will meet their anticipated financial obligations or future needs, such as paying for their sons and daughters' college education.

Some continue to spend -- knowing that any money saved may worth little or nothing down the road, and spending on the things they don't need with the money they don't have. This may be good for the economy based on consumer spending -- at least for the time being. But this is bad in the long haul, because it fosters delusional exuberance -- a sure way to get into debt.

Some continue to speculate -- looking for quick returns of their money in the stock market, in the real estate, or other speculative investments with inflated profits and earnings. This has got us into our present financial mess.

Unfortunately, what goes up must eventually come down. What has been inflated for decades of reckless spending must be deflated over many years of financial pain. This will happen when inflation comes back with a vengeance.

For the general public, to protect your purchasing power, you can do the following:

(1) Buy gold or precious metals.

(2) Buy commodities.

(3) Invest in fast-growing businesses in developing countries.

But, first and foremost, do not get yourself into debt. Yes, inflation could wipe off part of the debt. But when inflation comes back with a vengeance, you may have many other fiancial woes to take care of, and you wouldn't want to have your debt to deal with.

Ultimate Debt Guide shows you how to get out of debt fast with breakthrough strategies no matter how much your currently owe!

Stephen Lau

See No Evil, Say No Evil!

noreply@blogger.com (Stephen Lau) — Fri, 15 Jan 2010 20:31:00 +0000

See no evil, say no evil -- this is what our economists, our top government officials, and the media are telling us about the current US economy.

Understandably, you don't want to unduly scare the public and put people in the panic mode. But neither do you want to give people false hopes about the economy. We should be given a more realistic picture of the economy. More importantly, we should be told the truth, and nothing but the truth -- however unpleasant it may be.

Unfortunately, those people in the know have chosen to see no evil and say no evil, so that we would continue our reckless spending -- buying the things we don't need, with the money we don't have. Debt is the evil in our economy. But nobody want to see it as such, let alone say it. To many, if they could see any light at the end of the tunnel, they would start spending, instead of saving. And this is what the current recovery is all about -- spending! And this is why the economists, the top government officials, and the media see no evil and say no evil. They want us to spend more and get ourselves deeper into debt. Our consumer-based economy needs our spending, but spending will drive us only into debt, not out of debt. Spending is only a short-term solution to a long-term problem, which is debt. We must spend less, and save more, in order to get ourselves out of this financial mess, caused by mountains of debt and decades of reckless spending. Robbing Peter to pay Paul simply won't work. Seeing no evil and saying no evil will only aggravate the situation.

Before Enron went broke in 2001, Fortune magazine had dubbed Enron "America's most innovative company." But innovative in what? In cooking up accounts?

Again, Fortune magazine listed Bear Stearns as the "most admired" securities firms. Its company top executives repeatedly assured the public that all was well, and its CEO even said there was no liquidity crisis for the firm -- and only days later, Bear Stearns went belly-up. Did all these financial gurus really see no evil and say no evil? Shouldn't they be held accountable for the deliberate misformation they have been giving to the public?

Lehman Brothers -- involved in the largest bankruptcy in US history -- is another classic example of seeing no evil and saying no evil. Its CEO said everything was in order -- just a few months before the big meltdown.

Federal Reserve Chairman Ben Bernanke said in July 2008 that Fannie Mae and Freddie Mac were "adequately capitalized" and "in no danger of failing." Less than a month later, both were nationalized.

Again, both Ben Bernanke and Secretary Treasurer reassured the public regarding the safety of the US banking system in early 2008. Since then, more than one hundred banks have failed.

Do all these top government officials and overpaid CEOs really see no evil and say no evil about the economy?

The bottom line: When it comes to the economy, everybody is saying everything but the truth. Remember, only the whole truth, and nothing but the truth, will set you free -- free from debt. Knowing the truth holds the key to your own financial freedom. If you do see evil in the economy, such as the inflated dollar and the inevitable inflation down the road, then you should protect your assets and invest in gold, which will be the trade of the decade. The price of gold will go through the roof once inflation comes back with a vengeance.

Stephen Lau

The Upcoming Gold Rush

noreply@blogger.com (Stephen Lau) — Sun, 10 Jan 2010 12:06:00 +0000

There is strong evidence that there will be a gold rush. In other words, the price of gold may go through the roof in the near future.

(1) In 2009, the private demand for gold in China was exceptionally great. There was indication that China would replace India as the No.1 gold buyer in the world. This is not a surprise, given that China has a huge population, which demands gold jewelry and gold investment. The sustained economic boom in China ascertains the demand for gold to the amount of $13 billion or more. Indeed, gold has become an asset for China's increasingly wealthy and capital-rich middle class.

(2) Recently, Mr. Cheng Siwei, one of the top Chinese officials, said that US printing money to buy bonds would ultimately lead to inflation and the collapse of the dollar. Given that most of China's current foreign reserves are in US bonds, China will diversify incremental reserves into euros, yen, and other currencies. Certainly, this is a no-win situation for China. But China has made it clear that it will not only issue its own bonds in yuan, but also protect its assets by buying more gold. So there will be a gold rush. If China were to buy massive gold, the price of gold would shoot up sky high; and if China would dump US bonds, the bond price may collapse. Yes, China is now in a predicament. But China is not going to do nothing about the current financial situation. At present, China does not own too much gold, and it will be in the best interest of China to accumulate gold -- ir is just a matter of time. So, the gold rush is now underway.

(3) At present, the US government needs to continue to print more money to meet its massive spending and deficits. Despite some signs of economy recovery, it will not be any time soon that the US will be able to extricate itself from the current financial mess as a result of years of reckless spending and speculation. The war in Afghanistan and further economic woes will bring about only more stimulus packages, leading to more printing of US dollars.

For decades, both the US government and the Americans have accumulated massive debt. Unfortunately, debt has to be repaid somehow, and one of the ways to facilitate the repayment of debt is through inflation. This is exactly what the US government has been doing all along -- gradually, slowly, and subtly inflating the dollar. The US government has come up with misleading numbers to assure the public that there is hardly any inflation.

(4) The price of gold will continue to rise in deflation. The reason is that in a deflationary environment, the US government needs to print more money to keep the prices up. The price of gold will soar sky high when inflation returns with a vengeance. So, whichever way you look at it, the price of gold will continue to rise.

The trade of the decade is gold, not bonds and not stocks. Smart money management means increasing your portfolio in gold.

Stephen Lau

Should You Transfer Credit Cards?

noreply@blogger.com (Stephen Lau) — Mon, 04 Jan 2010 11:53:00 +0000

Nowadays, it is common to transfer accounts between credit card companies. But is it wise to switch from one credit card to another?

These are what you should consider before any switch:

(1) Consider the APR (the annual percentage rate) of the credit card you would transfer to. The APR is the interest rate divided by 12 months. For example, if the APR is 18%, you will be paying 1.5% of the total amount you owe every month. Do your math.

(2) Consider the APR after the introductory rate, which could be six months. Compare what you are paying now with what you will be paying after the introductory period. Do your math. Be smart and think long term!

(3) Read the fine print, such as penalty for late payment within the introductory period. Some credit card companies may hike the APR as a result of late payment. Other considerations include: the annual fee (ranging from $0 to $100), the cash advance fee (ranging from one to three percent of the amount advanced), the over-the-limit fee, and the returned-check fee, among other charges and fees.

Credit cards are convenient, and versatile: there are many types of credit cards, giving you rewards, gas rebate, and free mileage, among other incentives and perks. However, misuse of credit cards can lead to debt and other financial problems. Smart money management requires you to use your credit cards to your advantage. Smart money management requires smart credit card management, including the following:

paying your credit card bills on time
avoiding unnecessary charges and fees
paying attention to the fine print
finding out if the card issuer will charge a fee every time you check your balance through the credit card company's toll-free number (some do)

Smart money management is the key to financial freedom.

37 Days to Clean Credit is an effective credit repair system that instantly deletes inquiries, charge-offs, late payments, and judgments from credit reports. Learn how to fix your credit on your own without paying somebody to do it. Improve your credit score to have better APR for your credit cards. 37 Days to Credit Score is smart money management.

Stephen Lau

Smart Ways to Handle Debt Collection

noreply@blogger.com (Stephen Lau) — Tue, 29 Dec 2009 00:03:00 +0000

First of all, if you know smart money management, you would not have got yourself into debt in the first place. Of course, there may have been unforeseeable circumstances, such as loss of employment or medical emergency, among others.

In the current financial climate, debt collection is commonplace due to the extensive debt incurred during the past decades of economic expansion and financial exuberance.

If, unfortunately, you are in debt, and debt collectors harass you day in and day out, you should do the following:

1. Know the debt collector and know yourself. In the famous book The Art of War by Sun Tsu, the author pointed out: “Know your enemy and know yourself; in a hundred battles you will never be in peril. When you are ignorant of the enemy, but know yourself, your chances of winning or losing are equal. If ignorant both of your enemy and yourself, you are certain in every battle to be in peril.”

Knowing your debt collector, which is understanding the human side of a debt collector, will help you handle debt collection successfully. A debt collector has to call you incessantly and relentlessly (it may seem harassment to you) because he or she has goals to meet –- getting clients become current.

2. Make your account current. Ignoring your debt or delinquency problem won’t make it go away.

3. Devise a plan. This is where knowing yourself comes in. Know how much you can afford to pay, and what to do with your current emergency debt situation. Be realistic about your repayment.

4. Communicate with your debt collector. This is “knowing your enemy.” Make the debt collector help you resolve your financial problems.

5. Be knowledgeable about what you are going to do. Adopt a confident and positive attitude before and when you make your initial contact with your debt collector. Come up with a realistic repayment plan. Be prepared to have a plan B when you negotiate with your debt collector. Predetermine the bottom line you are prepared to accept. Keep an open mind.

6. Be open-minded in your options. Be neither defensive nor aggressive. Remember, your debt collector is working in an environment that is always filled with negativity, and he or she is human, just like you. Having an attitude is never a good communication skill, and will not get you anywhere.

7. Be organized and be prepared. Remember, your debt collector knows your name and address, your home and work phone numbers, the amount you owe, your last payment and the amount owed. Your debt collector has everything in front of his or her computer when speaking to you. It makes sense that you, too, should also have the same level of information, otherwise you might feel intimidated.

8. As a smart consumer, always request a copy of the payment history and a copy of your contract for the delinquent amount (if you have not already done so), and have them mailed to you. This not only buys you more time, but also shows your intention of settling the debt. To protect yourself, read your contract in its entirely, and review your account payment history. If you find any discrepancy or error, use it to your advantage.

9. Review your state’s law regarding debt collection and the federal Fair Debt Collection Practices Act (FDCPA) regarding your rights as a consumer. Knowing what a debt collector can or cannot do is important. Knowing your rights and being knowledgeable of the law, you can protect yourself from any intimidation by your debt collector.

10. Let your debt collector see your goodwill and your intention of settling the debt, not your lament on the difficulties of your present financial situation.

11. Document any agreement or arrangement made to show your sincerity and concern for your credit.

12. Always establish a good rapport during the first call. Never give more than you can handle. Never be rude.

Remember, being in debt is not a crime or shame -- it is just one of the many problems in life that one has to deal with.

Get yourself out of debt! The UltimateDebt Guide shows you the secrets of getting rid of thousands of dollars of debt in a matter of a few months without filing bankruptcy or using a debt-consolidation service.

Also, learn Living on a Dime, e.g. grocery shopping on a budget to save on your monthly grocery bills to help pay off your debt.

Stephen Lau