financial planning

How To Save Money For Kids Entertainment

2011-11-01T21:45:00.000-07:00

With most households having to find ways to make ends meet financially, one of the tough decisions parents have to make is how to keep their kids entertained. You don't want to lock up your kids and not let them out because you are afraid of spending money, you want them to have fun. There are ways how to save money for kids entertainment that will allow you and them to have a fun and full life together.

Here are some suggestions.

Move it. Take it outside and get playing. Ride bikes together, take evening walks, or find some good yard games to play. Get your family away from the television, computer, or video game system and out in the fresh air.

Look for free community events for kids and families. They can usually be found on online of offline community bulletin boards and in community parenting magazines. Many events and activities are fun and educational.

Have an in-home movie night. Make it a special occasion. Pop plenty of popcorn, get some pizzas, frost some mugs in the freezer for root beer and sit around on the floor. Don't forget to turn the lights down low. For little kids you could even print little tickets for them and give them a little change so they can pay for their ticket and snacks.

Board games are great ways for you and the kids to interact and allows a chance for some growth as well. Try having a game night once a week and let them try different games.

Have a night where your kids pick a fun meal to make or let them plan a menu for the evening and let them help making it. Be ready for a mess. This can be a real patience building opportunity for you, but a great growth and bonding experience for the kids.

Try to find crafts that you can do together. It doesn't matter if it takes a half hour or a few days to complete. It will help them explore their creative side.

Find something to build together. Let it be something big that takes days or weeks to build. It's good to have a project that you do as a family together.

Plant a garden. This can be a flower garden or a vegetable garden. Both are rewarding and gives them a great reason to get dirty. This can be a good ongoing project through the warmer months.

You will be tempted from time to time to splurge on your children. It is good to spoil them a little every once in a while, but don't feel like it is something you have to do every time you go out. Just because you or they see something they might like doesn't mean that you have to get it. Don't be afraid to tell them no or to wait. They will often forget about it quickly. The best way to save money for kids entertainment is to do things together with them. Those are the things that will leave the longest impression on them.

How To Save Money On Gas

2011-10-24T20:14:00.000-07:00

For many reasons, people are trying to find ways to cut back on the amount of gas they use. There are environmental reasons to do this, but what will cause most people to make changes is the effect that trips to the gas pump has on their bank account. The choice for many is to find how to save money on gas or how to get more money for gas. With the economy struggling as it has been around the world, finding ways to save money is the easiest thing to do. What may not be easy is changing some of the habits necessary to bring about those savings. With a little discipline, this can be done.

What will help the most is changing the way you drive. You might not consider yourself an aggressive driver, but your gas and brake pedals might feel differently. If you are used to quick starts and accelerations and quick stops, then you are being too hard on your car and using too much gas. Control your acceleration and deceleration and you will start seeing less frequent trips to the gas station and possibly less trips to the mechanic.

While on the road, obey speed limits. They will help you conserve gas and will help keep you from getting tickets. If you are interested in saving money, there is no sense in risking getting pulled and having to pay large fines because you wanted to push things a bit.

Reduce weight in your car. If there are things in your trunk or back seat that don't have to be there, then don't keep them there. Find a storage place for them and keep it there.

Stop your car from idling so much. While your engine is running and your car is sitting you are getting zero miles to the gallon. That is not very good fuel consumption. Your car will heat up or cool down quick enough when it's on the road.

Replace air filters and keep your engine clean. On cars with fuel injected engines it might not help with fuel economy directly, but it will make the engine work less and help your acceleration times. For older cars it is very helpful in keeping your car fuel efficient. Have your tires properly inflated. You can see your fuel efficiency rise by 3% by having your tires properly inflated. Make sure that your car is properly maintained and oil is changed at the recommended intervals.

An obvious way to save money on gas is to drive less. Take more walks, ride a bike, or make use of public transportation. Make use of opportunities to carpool by coordinating trips with coworkers or neighbors in taking kids to school. One carpooling opportunity that is overlooked is coordinating shopping trips with neighbors.

When needing to make a trip out and run errands, always try to accomplish several things while you are out. Plan your trips so that you don't have to do much back tracking.

How to save money on gas may require some extra planning and thinking on your part, but that extra work will pay off when you see less of your gas money disappearing every month.

How To Save Money At A Restaurant

2011-10-22T21:33:00.000-07:00

Eating is one of our favorite past times. It is the best way to get to know other people better. In today's culture it is becoming more frequent to eat meals with others at restaurants as opposed to eating in. While eating at home is a better budget decision, it is good to get out and visit your favorite restaurants once in a while. What will help make this a better decision is to use these suggestions of how to save money at a restaurant.

Watch for coupons and specials. Most restaurants will have them running periodically and they will be seen advertised in the paper, on the radio, and on the internet. All it takes is a little diligence. Much of the time they will have them on a regular schedule. The greatest deals are the two for one specials that restaurants will have. Find out which ones will have them.

Lunch is usually cheaper than evening meals. Make use of lunch specials as much as possible. Sometimes the portions will be smaller, but restaurants will often give you too much food anyway.

Look for "early bird" specials. Many places will have a discounted price if you purchase your meal before the evening rush of customers. Normally these specials take place between 4-5 pm. Not only will you have a quicker seating time, you will have a smaller check and tip to pay when the meal is done.

Ask for specials that aren't on the menu. Most places will have specials that are very good deals that are only for a certain day or week. Ask what they are and see if you can't take advantage of them.

Share the dish. Many places will give you much more food than you can or should eat. Sometimes it will make sense to take it home with you, but there are times when that isn't the best option. If you and the person you are dining with are interested in the same thing, see about splitting it and ask for an extra plate. Some places will charge you a little to do that, but it is still better than paying for too much food.

Drink water. It's just better for you and in most situations it is free. Make sure it isn't bottled water, though because then it will end up costing as much as any other drink. You can usually get complimentary lemon slices to go with your water to add a little flavor. If that isn't enough then sweeten it by adding sugar or a sugar substitute and make lemonade.

Don't get an appetizer unless it is going to be your meal. If you eat slower, you will get filled up faster. Appetizers are often overpriced if it is something that is to be shared with others. It isn't necessary and you won't miss it at the end of the meal.

Part of trying to save money is sacrificing. You don't have to give up everything but in those moments that you do treat yourself to something special like eating at a restaurant, learning how to save money at a restaurant will make it better all the way around.

How To Save Money At Home - Three Areas To Focus On

2011-10-21T21:35:00.000-07:00

With everyone feeling the effects of a down economy, it is important for households to find how to save money at home. There are many things that can be done to accomplish this, but the hard part is trying to get focused and then stay on target. There is a desire by many to try to find one fix for getting their household budget under control or to key in on just one area thinking that it will solve all their problems. The real way to accomplish this is to focus on several areas. Each on its own may not be enough to get you to your budget goals. However, if you use several or all of these together you will find your goal attainable. It all boils down to powering down, shopping smarter, and get clean.

Power Down

When you learn to conserve energy within your house, you not only help the environment, but you help your checkbook as well. If you aren't using an appliance or piece of equipment, don't leave it plugged in or turned on. The obvious things are making sure that lights are turned off when you leave a room. Less obvious is unplugging things like your coffee maker or microwave oven or entertainment center. Have these items plugged into a good multi-outlet strip and turn the switch off when they aren't going to be used for several hours. Have your computer set to turn off after 20 minutes of not being in use. You will see a significant drop in your power bill by being diligent about this.

Shop Smarter

There are many things that you can do to improve your shopping habits. Not only should you look out for sales, but clip coupons and shop at discount stores. Buy scratch and dent items. Look for items that are being discontinued or put on clearance. Buy used items when you can. Spend money only on the items that you need. Be picky about the price more than you are the label.

Get Clean

There are two things to think about in this area. First, realize that most of your cleaning can be done with only one cleaning product: bleach. Simply add a tablespoon to a gallon of water and you have something that will take care of most messes. To make it a disinfectant, mix one part bleach to nine parts water. Also, be careful not to spill it or use too much and never mix it with ammonia.

Second, clean your vents, registers, and baseboard heaters regularly. Make sure you switch out air filters monthly in the house. This will help keep your air clean, but it will also help keep your heating and air conditioning equipment from running too hard and in better shape helping to cut back on maintenance costs.

These are, but a few broad areas that can help you think about how to save money at home. There are many others that you should be able to come up with on your own. It will take some time and a good bit of effort to start thinking about these things on a regular basis and a measure of discipline, but after practicing them for a couple of months you should see significant improvements in your ability to stay within your budget goals.

Learn How To Save Money Better - Six Ideas

2011-10-21T20:13:00.000-07:00

One of the hardest disciplines there are in today's world is learn how to save money. For many people it is essential that they find ways. While there are many things that can be done to reach their budget goals, learning how to do it better is always needed. These are things that can help you accomplish your goals and are likely things that you can improve on.

1- Monitor your spending habits for two months. This should give you a clear image of spending habits you might have. You will find out where you are most likely to succeed and likely to fail. Problem areas will become evident. Just make sure that you are honest in your assessment.

2- Separate essentials from non-essentials. Realize that in tough economic times you might be going through that you may have to go without certain things. Choices will have to be made between items that you normally wouldn't even question buying. What will always help you make decisions is by honestly answering the question if it is essential or not.

3- Ask what can be downgraded. If you are used to buying certain brands that are more expensive than ask yourself what the real benefit is in opting for the more expensive version. It is rare that there is enough of a drop off in quality to warrant paying more for. Do this for everything from cars to computers to clothes to food. Treat stores in the same way. Is there really a benefit to shopping in Macy's rather than thousands of other lower priced stores?

4- Set up a budget. Break it down into simple categories and have it be something that is realistically attainable. Look at it in the same way one would a diet. In making a budget and creating a diet plan for yourself you are altering habits that may have been around for a long time and have to make sacrifices to reach your goals.

5- Try to give yourself a little wiggle room so that you can buy the occasional treat. For dieters, many will find more success by rewarding them with times not on their list of foods to eat. In trying to meet your budget, you will find it easier to stick with if you allow yourself a little extra luxury item. Keep it within reason and don't let it destroy what you worked so hard to accomplish.

6- Review your budget periodically. Look at where you succeeded and where you didn't. Find areas that you could do better in and lower the bar for yourself, each time making it more of a challenge.

When you learn how to save money you will usually find that there are ways that you can do it better. Turn your goal of saving money into a lifestyle. Keep seeking ways to improve your spending habits and you will find long-term results that will have you in better shape in any situation that comes along.

Monthly Budget Plan

2011-10-20T20:09:00.000-07:00

When it comes to making up a monthly budget plan, don't over think it. Unless you own a business or have a lot of investment income, your budget will be fairly simple to create. You can invest in software programs to help you out or you can just grab some lined paper and a pencil. It's totally up to you. Either way will be effective as long as you make sure you enter everything. If you forget to enter some things your budget will not be accurate no matter how great of a planner you have.

Consistency is the name of the game when it comes to making a realistic budget. You need to accurately record all of your income as well as everything you spend your money on. This may sound overwhelming but it's not, just as long as you make a point of adding your expenditures daily or weekly so that they don't pile up.

Step one to creating your budget is to determine all the income that is coming into the household. Make sure you include anything that can be used for the household bills such as alimony or child support payments.

Step two is to make a list (be very detailed) of everything you spend your money on monthly. Make sure you include the amount of money you spend for dining out, clothes, hair care, pet bills, etc. Even though you may not spend this money every single month, you still need to include it in your budget. The best way to do that is to go back over the last year and figure out how much you've spent in each of these categories over the course of a year, then you can divide that number by 12 which will let you know how much you should budget per month so that when you do need to buy clothes or take your dog to the vet, you have the money set aside for it.

Once you've got all your expenses written out and all your income written out it's time to go to step three: find out your bottom line. This is the time where you subtract your expenditures from your income and hope the number you come up with is a positive one. If it is, that means you are living within your means and that you aren't spending more than you make.... yea!

If, on the other hand, you're like so many people today who find that number is a negative one, which indicates that you are living beyond your means and spending more than you make, (probably with the use of credit cards) you need to make some serious changes right away. Living like this will catch up with you at some point and when it does it's going to be painful.

If you're 'in the hole' just look back over the money you've been spending, more than likely you can find some areas where you can cut back and /or save some money.

The first step to true financial security is to live within your means and invest and save money. In order to do that you need to start with a monthly budget plan, and now you know just how to do that!

What You Need To Know About Credit Score Agencies

2011-10-17T20:06:00.000-07:00

For all intents and purposes, there are three credit reporting agencies in the United States. They are worth noting because they calculate the all-important credit score. These credit score agencies are: there are three major credit score agencies, or credit reporting agencies; they are Equifax, TransUnion and Experian. They are mostly responsible for gathering financial information on virtually everybody in the US, and will provide their findings to those parties that make a legitimate request for it.

Just so you know, it's not only banks or car dealers that can get access to your credit information. Others that can get it are utility companies, insurance agents, landlords and potential employers, to name but a few. In fact, many of them now rely on the data provided by the credit score agencies to get an idea of an individual's credit risk.

Furthermore, your credit score has a direct impact not only on how high or low your loan interest rates will be, but also on whether or not you can get the loan at all. In this respect, the same is true for credit cards as it is for loans.

Because the credit agencies play such a major role in your financial well-being, it's vital that you do not engage in the behavior that can be detrimental to your credit. It's just as vital that you get copies of each of your credit reports and check for any mistakes; being sure to report and amend any and all inaccuracies you may find.

The logical question then becomes what kind of things reduce your score? Not making payments on time (utility bills and loans), not enough income to cover too much debt. The amount of debt you have as compared to your total income is your debt-to-income ratio, and should be no higher than about 37% (a lower ratio is even better). A higher ratio, even if you are making all the payments, spells too much risk in the eyes of most lenders.

But that's not all. There are other financial behaviors that credit score agencies tend to frown upon. Too much activity on an account in a short amount of time is one such red flag. Another is getting lots of requests for your credit report in a short time. This gives the appearance that you are shopping for credit, and, by their reasoning, running up more debt than you can repay. The one exception to this rule is if you request to see your report; this should never reflect poorly on your credit score.

Finally, you should know that each of the three credit reporting agencies may generate a slightly different credit score for you. This s because different creditors report to different agencies. Some will report to all three, but because not every creditor does this, bigger lenders will average the three different scores to get a more accurate idea of what your actual number is. It may seem like a bit of hassle to check your reports, but credit score agencies do make mistakes, and it's your money and lifestyle that are at stake.

Seven How To Save Money On Groceries Tips

2011-10-16T20:00:00.000-07:00

Buying groceries is one of those things that can seem like a never ending job and can easily get out of control if you don't have a firm grasp on your spending habits. While the demand and need for food in your house is constant, rarely are your shopping lists and the prices you find at the store consistent. Tastes change from month to month and the prices at stores are changing all the time. It can be hard to know just how much you are going to have to spend from week to week or month to month. Before you know it, the amount of money you have spent on groceries has left your bank account nearly empty. Learning how to save money on groceries is something that takes a little discipline, some flexibility, and some compromise.

1- Ask butchers at the grocery stores you frequent when they discount meat. Usually once per week they will reduce the prices on meats that will have to be pulled the following day. Just make sure you either use the meat that day or put it in the freezer as soon as you get home.

2- Don't be afraid to use discount groceries. The brands you see might not be familiar to you, but they are not much of a drop off in quality than the brands that you are accustomed to if there is any drop off at all. The price difference and the savings can be significant. The key to this is to buy what is on sale if you think you can or will use it.

3- Look for scratch and dent items or products that have been discontinued and marked for clearance. There is nothing wrong with these items and can save you quite a bit of money when you run into them.

4- Frequent day old bread stores to find the breads and baked goods you like. What you can't use quickly, put in the freezer.

5- Don't be a slave to your menu. It is good to have an idea what you want when you go in, but if you see items that are on sale that you know your house likes then take advantage of it. Base your menu on what you are able to find.

6- Don't be a slave to your budget. Allow yourself some wiggle room. If you find some deals on items you use a lot that are hard to pass up, don't. More than likely money that you go over on items will mean less that you have to spend the following month.

7- Buy in bulk. Take advantage of big box stores and buy a lot of the things that you use a lot of. The price per unit will normally be quite a bit lower.

The key in learning how to save money on groceries is to think outside your box. Some of these things may require you to go shopping at times that you aren't accustomed to and to purchase things that you otherwise wouldn't, but the result will be something that you will want to see every month.

What Does Your Credit Score Mean

2011-10-15T20:04:00.000-07:00

You may already know that your credit score plays a big part in your personal finances. At the same time, you may wonder what it means, who decides what your score is, how it really affects your daily life and what things can make it go up or down? All of these are fair questions. And when the economy is on the weak side, like it is today, it's only logical to be concerned about making your money do as much as it can for you. You can never be sure when you may have to borrow money for an unforeseen event or the purchase of a lifetime, that's why getting and keeping a good credit score is so important.

So what precisely does the term "credit score" mean? Basically it's nothing more than a number that has been assigned to virtually every adult in the US. It is meant to be an objective measure of how risky it is to extend credit to an individual. The lower your score, the harder it is to get a loan, and the more of a negative it can have on other aspects of your life as well. However, if you have a higher score, you will find it easier to get loans, and to get better terms attached to those same loans. You will usually pay lower interest on credit cards, too.

Besides being able to get loan or not, and the getting better terms, credit scores are more recently being used by utility companies, cable companies, insurance agencies, landlords and even potential employers. This can affect your rates, whether or not you have to pay deposit to get service, or if you will be able to rent a place to live. Anybody who has a legitimate need to see your credit report, and credit score can do so if they pay a fee to the credit reporting agency.

What are the elements used to come up with a credit score? The largest determinant of your score is how well you have taken care of your credit and debt in the past. Those who have made all of their payments on time will have a higher score. But those who have late or missed payments will have their scores lowered as a result. Needless to say, a missed mortgage payment is worse than a telephone bill that's a day late. While bankruptcy is the one event in your life that can have the longest lasting negative effect on your credit score.

Close behind your past credit history in calculating your credit score is the total amount of debt you owe. If your debt-to-income ratio is too high, it shows lenders that you will probably have a hard time keeping up with a new loan. Even they understand that you can only live beyond your means for so long. Another prime factor in figuring out your score is how far back your credit history goes; the longer, the better. Though a long credit history isn't enough to compensate for missed payments.

Stop Home Foreclosure - 5 Tips For Stopping Your Own Home Foreclosure

2011-10-14T20:03:00.000-07:00

The foreclosure process is difficult, making lives hard for thousands of individuals and families across the nation. As the number of foreclosures in the country continues to rise, more and more people are looking for ways to stop the entire process. While some are successful, others fail to find a way to save their home.

If you are trying to stop home foreclosure, there are a few things that you need to consider before you start this process. Mainly, you need to realize that your efforts may not be successful. While some are able to stop this process, others are not.

With that being said, these five tips may help you to stop your own home foreclosure. Look into these tips and choose the tips that are most likely to benefit your current situation.

Communicate With your Bank

If you are trying to stop your own foreclosure you need to make sure that you are having an open conversation with your bank. If you communicate with your bank, you may open yourself up to opportunities to save your home. The bank may be willing to restructure your loan, or may be able to direct you toward charities and organizations that help those in financial trouble.

Reach Out to Local Charities

You should look into these charities and local organizations, as they may be able to provide you with financial assistance. There are multiple organizations that have one simple goal: they want to help those who are about to lose their homes. While the help may be minimal, it may be exactly what you need to keep your home.

Consider Bankruptcy

Chapter 13 bankruptcy is a special form of bankruptcy that allows individuals to keep the assets that they owe on. You will see manageable, monthly payments if you go through the bankruptcy route, and will be able to avoid foreclosure.

Talk to Lawyers

If you are thinking about bankruptcy, or other legal options, talk to a lawyer. They will be the only ones who will be able to give you the legal advice that you need to understand all of your possible legal options.

Re-Work your Budget

If you want to stop a home foreclosure, you need to look at your own budget. Try to find any way that you can re-work your budget to get the money that you need for your monthly payments. Sometimes, a simple budget evaluation can help you to bridge the gap.

Some families have good relationships with their bank, and will be able to talk to their banks about their loans. Others may be able to reach out to local charities to get the help that they need. No matter what you need to do, you should do what you can to stop home foreclosure. These five tips are meant to help you to keep your home and avoid the financial and personal troubles of the foreclosure process.

Online Budget Planner

2011-10-10T19:58:00.000-07:00

It's easy to get intimidated with the idea of making, and sticking to, a household budget. But the truth is that it really isn't that hard, sure there are many online budget planner programs that can be very involved with a lot of bells and whistles, but many people don't need all that and there are just as many simpler, easier to use programs that can help you get a handle on your finances once and for all.

Before you start your search for a budget program remember to take some time and consider the things you need, or want, to include in your budget so you can make sure to find just the right program for you and your needs.
Here are some things to consider when you're looking for just the right planner;

1. Keep your skill level in mind when looking for a planner. If you don't have a lot of experience with computers and / or budgets you should only consider getting those planners that are fairly simple and easy to use. Unless you own a business you probably don't need some big elaborate affair. Just make sure that it has the basic features you want and need. Make sure that whatever you find can be downloaded and even printed out.

2. Try to stay away from those planners that have limited personalization. If you don't have dividend income than you don't need a category for that. Keep it simple and try to find a planner that will allow you to add, or subtract, categories so you only have the ones that you need.

3. When you're just starting out creating a budget, it's almost always better to start off very simply. If you find that you need to add certain categories as you get going you can, provided you pick a planner that has a high degree of customization available. The more complicated it is the less likely you'll be to use it. The best planner in the world won't do you any good if it is such a hassle to use that you simply don't use it.

4. Don't lose sight of how important creating, and using, a good budget can be. Many people are very surprised to see just where their money is going. Once you've gotten all your categories filled in you can easily subtract the amount of expenses you have from the amount of money you make. This will give you a clear picture of whether or not you are living beyond your means. If you find that you are spending more than you make, you will have all your expenditures right in front of you in black and white so you can easily see what areas you need to cut back on.

To find the best online budget planner for you and your needs, you have to know exactly what those needs are before you start looking for your planner. Take a few minutes to make a note of some of the basics categories you will need so that when you start your search you'll already have a good idea of just what you need. If you view this process as liberating instead of a hassle, you may just find that you actually enjoy the process and have more money in your pocket at the end of each month!

Financial Planning Advice Can Make You Or Break You

2011-09-28T10:06:00.000-07:00

When it comes to plotting your financial course, most people will be better off if they find a qualified person to give them sound financial planning advice. There are so many products available, and so many options it would be virtually a full time job if you tried to do it yourself.

Getting qualified, professional advice is good advice, but you do have to be careful. Not everyone knows what they are talking about and many so called professionals are only interested in making a commission and really don't care all that much about you and your longterm financial goals.

The one thing you absolutely must keep in mind is that no financial planner will be able to tell you with any degree of certainty which stocks you should buy, when you should buy, etc. The market has a mind of it's own and no one has ever been able to read it with any degree of accuracy. Oh sure, sometimes someone will get lucky, but they are never able to maintain that.

Many commercials on t.v. will tout how they've outperformed this or that for the last ten years but in reality if you look closely they haven't really done any better than the market on average.

Most financial planners will only get paid when they make a sale, they work on commission. That doesn't make them, or their advice, bad...necessarily. It does, however, mean that you have to take everything they tell you with a grain of salt.

I once read a book that said you should never trust anyone to give you financial advice unless they were living off of their own investments. Think about it. If the financial planner you are thinking about working with can't make a great living off of the financial advice they are giving you, why would you trust them with your money? If they were so good at picking winners they wouldn't be working for commissions and selling things to other people,they would be living off of their own investments on a beach in Tahiti!

Having said that, it will still be beneficial for most people to enlist the aid of a financial professional, not to tell you what to do with your money, but rather to give you options and all the pros and cons of each so that you can make an informed decision as to which course of action is best for you.

You really want to be careful when 'interviewing' a financial planner. Too many 'professional planners' or more about selling you a product than giving you sound advice so you can make up your own mind.

Your money and your future is too important to just ignore. It's also too important to trust just anyone. Take some time to interview potential planners. Make sure they understand what your goals are and that they aren't just interested in making a commission and selling you a product. Sound financial planning advice is one of the best investments you can make in your future.

Best Financial Advice Find What Works For You

2011-09-28T10:01:00.000-07:00

Now is a great time to get your financial house in order. The market, according to some, is starting to rebound. Even if it isn't, the events of the last 18 months should have taught all of us a lesson: save more, and use credit less. Many of us could benefit from sound financial advice. The first thing you will need to do is find the best financial advice you can.

While getting help trying to unravel complicated financial choices you have to remember that ultimately the decisions you make have to be your own. Only you can make the best choices for your overall, long term financial health. Any advice you receive should be taken as just that: advice. Not gospel or fact, just someone's opinion for you to consider.

Before settling on an advisor here are some things you can keep in mind. These tips will help you pick a good advisor and, hopefully, avoid falling into the trap of trusting someone who isn't qualified to give you financial advice.

1. What credentials does the advisor have? Many times an advisor will be what is called a 'tied agent'. That means that they can only sell the products and services of one company. That doesn't mean they can't help you but if they are tied to only one company they will be limited in the products they suggest to you and they will obviously not offer you unbiased information.

They are duty bound to show you which of their products are best for you, they don't necessarily have to tell you that none of the products their company provides is a good fit for you and your goals and that XYZ company actually has something that may work better for you.

2. How does the financial planner make their money? It's almost always in the form of a commission or fees. That means if they don't sell you something, they don't make any money. Make sure you know what the total fees and commissions will come to. Sometimes they will receive multiple fees for various transactions, that can really add up...for you.

3. Fiduciary. This funny sounding word is very important to your financial health. A planner who accepts fiduciary responsibility means they are obligated under the law to act in your best interests. Anyone who doesn't accept this responsibility is just saying that they will try to act in a way that doesn't hurt you.

4. Will the financial planner help you with every aspect of your financial plan? That would entail everything from having adequate insurance coverage, to investment choices and estate planning. There are many elements to your financial health and a good advisor should be able to help with all of them and provide you with a comprehensive plan.

When looking for the best financial advice it's important to keep the above list in mind. The whole process can seem overwhelming and while it's important to enlist the help of a professional it's even more important to never forget it's your money and your future. You need to be an attentive co-pilot on this little journey!

Personal Financial Advice A Few Tips Of Caution

2011-09-28T03:35:00.000-07:00

If you want to make sure that you have secured your future as much as you can, you will want to find someone who can give you intelligent, unbiased personal financial advice. There are many people around who claim they are financial advisors but you want to be careful who you hire. You have to not only be able to trust them but you also want to be able to like them so you can work closely with them.

When you first start your search you should probably ask for a recommendation right at your local bank or credit union. More than likely they can give you a referral. One word of warning though, they will likely have many of their own products that they will try to sell to you. That may not be bad but in order to make an informed decision make sure you ask a lot of questions and don't buy any product or service, unless you're sure it's a perfect fit for what you are trying to accomplish financially.

Asking friends, family, and co-workers is another way you can get a referral to a good financial advisor. You may be surprised at how many people you know actually enlist the aid of an advisor. Many people mistakenly believe that only the rich have advisors. A good advisor will be able to help you protect the assets you already have as well as find ways you can potentially grow those assets.

Once you've got a few recommendations go around to them and start 'interviewing' them. Again, it's your money you have the right to ask a lot of questions of whoever you're considering asking to manage your money. Make sure you check the credentials of any advisors you are considering hiring.

Also find out if they are 'tied' or independent. A tied agent is one who can only sell the products and services of one company. They can still help you but it's important that you know that they do have limitations of which products they can sell to you. That way you can make sure that the product they are selling you is the best product to help you achieve your goals and not just the best product their company has for achieving your goals. There is a big difference.

An independent agent may sound like a better choice, but it can have it's landmines too. For example, even though an independent agent can sell products from many companies they will often push a product from the company that offers them the highest commission, not necessarily the best product for you and your needs.

Knowledge is power, so now that you know what the potential issue can be for both a tied and independent agent you can ask questions and avoid them.

If you want to make sure you protect your future, hiring someone who can provide you with top notch personal financial advice can really help. There are many elements to your money. Everything from insurance to estate planning. Make the most of your money by finding a professional to help you navigate all the resources available to you.

Personal financial planning

2011-09-28T03:30:00.000-07:00

A key component of personal finance is financial planning, which is a dynamic process that requires regular monitoring and reevaluation. In general, it has five steps:

   1. Assessment: One's personal financial situation can be assessed by compiling simplified versions of financial balance sheets and income statements. A personal balance sheet lists the values of personal assets (e.g., car, house, clothes, stocks, bank account), along with personal liabilities (e.g., credit card debt, bank loan, mortgage). A personal income statement lists personal income and expenses.
   2. Setting goals: Two examples are "1. Retire at age 65 with a personal net worth of $1,000,000," and, "2. Buy a house in 3 years while paying a monthly mortgage servicing cost that is no more than 25% of my gross income." Having multiple goals is common, including a mix of short term and long term goals. Setting financial goals helps to direct financial planning.
   3. Creating a plan: The financial plan details how to accomplish your goals. It could include, for example, reducing unnecessary expenses, increasing one's employment income, or investing in the stock market.
   4. Execution: Execution of one's personal financial plan often requires discipline and perseverance. Many people obtain assistance from professionals such as accountants, financial planners, investment advisers, and lawyers.
   5. Monitoring and reassessment: As time passes, one's personal financial plan must be monitored for possible adjustments or reassessments.

Typical goals most adults have are paying off credit card and/or student loan debt, investing for retirement, investing for college costs for children, paying medical expenses, and planning for passing on their property to their heirs (which is known as estate planning).[citation needed]

The six key areas of personal financial planning, as suggested by the Financial Planning Standards Board, are:

1 - Financial Position: this area is concerned with understanding the personal resources available by examining net worth and household cash flow. Net worth is a person's balance sheet, calculated by adding up all assets under that person's control, minus all liabilities of the household, at one point in time. Household cash flow totals up all the expected sources of income within a year, minus all expected expenses within the same year. From this analysis, the financial planner can determine to what degree and in what time the personal goals can be accomplished.

2 - Adequate Protection: the analysis of how to protect a household from unforeseen risks. These risks can be divided into liability, property, death, disability, health and long term care. Some of these risks may be self-insurable, while most will require the purchase of an insurance contract. Determining how much insurance to get, at the most cost effective terms requires knowledge of the market for personal insurance. Business owners, professionals, athletes and entertainers require specialized insurance professionals to adequately protect themselves. Since insurance also enjoys some tax benefits, utilizing insurance investment products may be a critical piece of the overall investment planning.

3 - Tax Planning: typically the income tax is the single largest expense in a household. Managing taxes is not a question of if you will pay taxes, but when and how much. Government gives many incentives in the form of tax deductions and credits, which can be used to reduce the lifetime tax burden. Most modern governments use a progressive tax. Typically, as your income grows, you pay a higher marginal rate of tax. Understanding how to take advantage of the myriad tax breaks when planning your personal finances can make a significant impact upon your success.

4 - Investment and Accumulation Goals: planning how to accumulate enough money to acquire items with a high price is what most people consider to be financial planning. The major reasons to accumulate assets is for the following: a - purchasing a house b - purchasing a car c - starting a business d - paying for education expenses e - accumulating money for retirement, to generate a stream of income to cover lifestyle expenses.

Achieving these goals requires projecting what they will cost, and when you need to withdraw funds. A major risk to the household in achieving their accumulation goal is the rate of price increases over time, or inflation. Using net present value calculators, the financial planner will suggest a combination of asset earmarking and regular savings to be invested in a variety of investments. In order to overcome the rate of inflation, the investment portfolio has to get a higher rate of return, which typically will subject the portfolio to a number of risks. Managing these portfolio risks is most often accomplished using asset allocation, which seeks to diversify investment risk and opportunity. This asset allocation will prescribe a percentage allocation to be invested in stocks, bonds, cash and alternative investments. The allocation should also take into consideration the personal risk profile of every investor, since risk attitudes vary from person to person.

5 - Retirement Planning: retirement planning is the process of understanding how much it costs to live at retirement, and coming up with a plan to distribute assets to meet any income shortfall.

6 - Estate Planning: involves planning for the disposition of your asset when you die. Typically, there is a tax due to the state or federal government at your death. Avoiding these taxes means that more of your assets will be distributed to your heirs. You can leave your assets to family, friends or charitable groups.