No one ever said that managing your finances is an easy thing to do. Many of us have a difficult time living on a tight budget. One positive is that through smart planning with the help of some basic knowledge of refinancing, you can save a good deal of money. Better yet, you can watch it grow. That's why you need to find ways of financing to put more money in your pockets.
There are a number of different options you can take when it comes to learning more about finances. The most important is probably have some good common sense. The trick is to focus in on your goals and find solutions to what's holding you back from having money. Here are some simple ways you can begin putting money back into your pocket instead of paying it out to someone else:
* Start with debt management - If you are buried under credit card debt, one thing to take refuge is the fact you're not the only one. Nearly everyone you meet has some sort of credit card problems. One way to If you're mired in credit card debt, you're not alone. I recommend refinancing your mortgage as a way of cutting into that debt. A mortgage refinance can get you a lower interest rate than most credit cards, leading to significant savings of money in the long run. Another option is for you to consolidate those debts too.
* Be aware of all your interest rates - Ok, maybe you're not in financial debt or trouble but you may be losing money by not paying attention to it. If you have money saved into account or in investments with too low of an interest rate, you're losing money that can be potentially be making. This happens most often in checking and savings accounts that pay extremely low interest rates. That interest rate can even be voided from the the pace of inflation. Financial experts are saying to move your money to a liquid money market. This pays a higher return.
* Open a home equity line of credit - I'm sure you've heard to save your money for a rainy day. The old line of thinking was to save three to six months worth of your salary on hand in case you ever found yourself in a financial crisis. You can do that or you could use that money for more lucrative money making potential. Try going with a home equity line of credit for your emergency or rainy day fund. This way the only risk you face is paying on the interest rate of any money you use from that line of credit.
* Refinance - Refinancing isn't the end all answer to your financial problems. It can , however, make life a little easier but saving you a good deal of money. Do some research on current mortgage rates and then compare them with your mortgage. If you discover you are paying a percentage or two more than you should be, I recommend refinance your loan. Another option is to refinance to one with a shorter term. This can save you thousands of dollars in long-term interest.
Debit Card - What It Is And How It Works
Do you remember the days when the debit card was the most important means of transacting business? Very few people then had credit cards. Together with the check book, it was the primary means of doing transactions. Those were the days when there were very few credit-card owners.
So what exactly is a debit card and how does it work? It is like a credit card, made of plastic and is used as an alternative payment methods to cash when purchases are made. Typically, it is directly linked to the card holder's account. Whenever they are used to do transactions, the card holder's account is automatically deducted.
Here is an example of how it works. John Doe has one that is tied to his savings account. He has an opening balance of $15,000. Now since it is tied to a savings account, John Doe can use his card to do $15,000 worth of transactions, either in the form of purchases or ATM withdrawals.
Many debit cards have a maximum withdrawal amount per cycle built into them. For instance, you may have a withdrawal limit of $3,000 every three days. What this means is even though there may be more than $3,000 in your account, they can only withdraw up to $3,000 in any three day cycle. This particular feature was used to safeguard cardholders against possible theft and the subsequent draining of the cardholder's account.
Coming back to the example above - assuming John Doe had a three day cycle limit of $3,000, and he made a purchase of a stereo set costing $1,500 on day one, the balance on his savings account would now stand at $13,500, and over the next two days he will only be able to do ATM withdrawals and or purchases to the tune of a $1,500. Again, this feature is designed to protect the card holder against theft.
If after doing a number of transactions, John Doe brought down the balance in his savings account to $1,000, then this is all that will be available to him even though he has a three day withdrawal cycle of $3,000.
Debit cards are a safe means of making purchases since it saves the purchaser from having to walk around with cash in order to make his or her purchasers.
When this was the primary tool for making purchases, it kept card owners out of financial trouble since they could only use or withdraw what was in their account, and could not overdraw their balances.
Now how is John Doe's account updated each time a transaction is done? Each debit card has a black strip at the back of it. This is known as the magnetic strip and contains information about the card holder that cannot be seen by the naked eye. This information includes the card holder's name, banking institution, bank account, branch, and other pertinent information. When the card is used to either do ATM withdrawals or purchases from merchants, a card reader is used to initiate and conduct the transaction. In the case of an ATM withdrawal, the debit card owner place is the card in the card reading mechanism, and enters a Personal Identification Number or PIN that identifies him or her to the system. This is validated by the machine and opens the way for the cardholder to do an ATM transaction. Withdrawals of amounts that fall within the account owner's balance will be honored. All others will be declined.
When the cardholder makes a purchase, pretty much the same steps are carried out as if he were going to do and ATM transaction. The only difference here is instead of the big ATM machine, the merchant to have a much smaller hand-held cards Reading machine. The steps a pretty much the same. The merchant swipes the debit card in the card Reading mechanism then enters the amount of the transaction. The card owner must now validate the transaction by entering his of her Personal Identification Number. Once all is correct up to this point, the card reading machine would now use the network that is in place to determine whether the cardholder has funds in his or her account. If they do the transaction is completed. If they do not the transaction is declined.
While debit cards are not as popular as credit-cards, they're certainly a very valuable tool for anyone who is serious minded about savings and monitoring their indebtedness to financial institutions. Since the debit card typically works with the card owner's available balance, it negates the whole credit process thus helping the cardholder to avoid on necessary indebtedness. It disciplines the card owner into managing their personal finance and thus saving credit facilities for when they are really needed. That being said, they are an excellent means of rebuilding your credit.
So what exactly is a debit card and how does it work? It is like a credit card, made of plastic and is used as an alternative payment methods to cash when purchases are made. Typically, it is directly linked to the card holder's account. Whenever they are used to do transactions, the card holder's account is automatically deducted.
Here is an example of how it works. John Doe has one that is tied to his savings account. He has an opening balance of $15,000. Now since it is tied to a savings account, John Doe can use his card to do $15,000 worth of transactions, either in the form of purchases or ATM withdrawals.
Many debit cards have a maximum withdrawal amount per cycle built into them. For instance, you may have a withdrawal limit of $3,000 every three days. What this means is even though there may be more than $3,000 in your account, they can only withdraw up to $3,000 in any three day cycle. This particular feature was used to safeguard cardholders against possible theft and the subsequent draining of the cardholder's account.
Coming back to the example above - assuming John Doe had a three day cycle limit of $3,000, and he made a purchase of a stereo set costing $1,500 on day one, the balance on his savings account would now stand at $13,500, and over the next two days he will only be able to do ATM withdrawals and or purchases to the tune of a $1,500. Again, this feature is designed to protect the card holder against theft.
If after doing a number of transactions, John Doe brought down the balance in his savings account to $1,000, then this is all that will be available to him even though he has a three day withdrawal cycle of $3,000.
Debit cards are a safe means of making purchases since it saves the purchaser from having to walk around with cash in order to make his or her purchasers.
When this was the primary tool for making purchases, it kept card owners out of financial trouble since they could only use or withdraw what was in their account, and could not overdraw their balances.
Now how is John Doe's account updated each time a transaction is done? Each debit card has a black strip at the back of it. This is known as the magnetic strip and contains information about the card holder that cannot be seen by the naked eye. This information includes the card holder's name, banking institution, bank account, branch, and other pertinent information. When the card is used to either do ATM withdrawals or purchases from merchants, a card reader is used to initiate and conduct the transaction. In the case of an ATM withdrawal, the debit card owner place is the card in the card reading mechanism, and enters a Personal Identification Number or PIN that identifies him or her to the system. This is validated by the machine and opens the way for the cardholder to do an ATM transaction. Withdrawals of amounts that fall within the account owner's balance will be honored. All others will be declined.
When the cardholder makes a purchase, pretty much the same steps are carried out as if he were going to do and ATM transaction. The only difference here is instead of the big ATM machine, the merchant to have a much smaller hand-held cards Reading machine. The steps a pretty much the same. The merchant swipes the debit card in the card Reading mechanism then enters the amount of the transaction. The card owner must now validate the transaction by entering his of her Personal Identification Number. Once all is correct up to this point, the card reading machine would now use the network that is in place to determine whether the cardholder has funds in his or her account. If they do the transaction is completed. If they do not the transaction is declined.
While debit cards are not as popular as credit-cards, they're certainly a very valuable tool for anyone who is serious minded about savings and monitoring their indebtedness to financial institutions. Since the debit card typically works with the card owner's available balance, it negates the whole credit process thus helping the cardholder to avoid on necessary indebtedness. It disciplines the card owner into managing their personal finance and thus saving credit facilities for when they are really needed. That being said, they are an excellent means of rebuilding your credit.
Winning Tips for Spread Betters
I have been trading futures, options and equities for many years. As well as trading my own money I have traded money for banks and I have been a broker for private clients. Over the years I have been fascinated to discover the difference between winners and losers in this business.
Try to learn from the points I am about to give you.
1. To maximise profits, Direct Market Access (DMA) and Level 2 are essential. This allows me to see the strength of the order book and place an order either inside the spread or join the queue outside the spread. Over time this has a huge bearing on trading efficiency.
2. The broker I use allows me to go straight to the market and does not charge a commission. There is no stamp duty and of course no income tax or capital gains tax on profits. Again this has a huge impact on trading efficiency.
3. I have only really read one book on how the market operates and that is 'The UK Trader's Bible by Dominic Connolly'. I wish him well on the other side of the world.
4. It is essential to have a high aptitude for risk and a gambling mentality. Conversely you have to be risk aware and all the time you are trying to make your trades more efficient by getting the odds on your side. I know what I mean here but hard to explain.
5. Outside spread betting I chiefly invest in small cap companies. Spread betting on FTSE 100 companies requires a greater awareness of the macro economic picture. For example, prices can move rapidly when economic news is released, it is essential to be in front of the screen when this happens. Likewise, London prices react to movements on Wall Street so an eye has to be kept on the Dow Jones Index.
6. Avoid the temptation to take positions outside your chosen sphere of knowledge. I got to know "my shares" well but once or twice was tempted to take a position on a share I did not know which had experienced a sudden price movement. It usually was not a good move.
As I said at the beginning I am no expert on spread betting and I am sure there are many books which set out techniques and strategies far better than I have. What I do know is that the above has worked for me and I have managed to recoup the losses of last year with some profit left over. I am sure that there are many flaws in what I have written and yes luck did play its part.
I used to work for a group which had a spread betting division, I had no involvement with the division but I know from talking to the guys who ran it that most spread betters end up making losses. I therefore do not encourage anyone to follow in my footsteps but if you do, be aware that the losses can be far higher than your initial stake. It is not a game for the faint hearted.
It is hard work and can be very draining. For that reason and also because a torn muscle has healed at least I hope it has, I am returning to the golf course for the summer months and my spread betting career is over for the time being.
Try to learn from the points I am about to give you.
1. To maximise profits, Direct Market Access (DMA) and Level 2 are essential. This allows me to see the strength of the order book and place an order either inside the spread or join the queue outside the spread. Over time this has a huge bearing on trading efficiency.
2. The broker I use allows me to go straight to the market and does not charge a commission. There is no stamp duty and of course no income tax or capital gains tax on profits. Again this has a huge impact on trading efficiency.
3. I have only really read one book on how the market operates and that is 'The UK Trader's Bible by Dominic Connolly'. I wish him well on the other side of the world.
4. It is essential to have a high aptitude for risk and a gambling mentality. Conversely you have to be risk aware and all the time you are trying to make your trades more efficient by getting the odds on your side. I know what I mean here but hard to explain.
5. Outside spread betting I chiefly invest in small cap companies. Spread betting on FTSE 100 companies requires a greater awareness of the macro economic picture. For example, prices can move rapidly when economic news is released, it is essential to be in front of the screen when this happens. Likewise, London prices react to movements on Wall Street so an eye has to be kept on the Dow Jones Index.
6. Avoid the temptation to take positions outside your chosen sphere of knowledge. I got to know "my shares" well but once or twice was tempted to take a position on a share I did not know which had experienced a sudden price movement. It usually was not a good move.
As I said at the beginning I am no expert on spread betting and I am sure there are many books which set out techniques and strategies far better than I have. What I do know is that the above has worked for me and I have managed to recoup the losses of last year with some profit left over. I am sure that there are many flaws in what I have written and yes luck did play its part.
I used to work for a group which had a spread betting division, I had no involvement with the division but I know from talking to the guys who ran it that most spread betters end up making losses. I therefore do not encourage anyone to follow in my footsteps but if you do, be aware that the losses can be far higher than your initial stake. It is not a game for the faint hearted.
It is hard work and can be very draining. For that reason and also because a torn muscle has healed at least I hope it has, I am returning to the golf course for the summer months and my spread betting career is over for the time being.
Taking Care of Business At Home - A Personal Finance Checklist
Why would you not consider yourself a business of ONE person? Or your family as a business of 3 or more people? Well that is exactly what you are - "Me Incorporated", "I Inc", "We Incorporated". You truly must consider yourself a small family business. Like any business you have ongoing expenses (mortgage, rent, utilities, groceries), revenue (salary and other income) and major capital expenditures (house, vehicle, vacations, renovations).
Like any good 'household business', you need to do some planning. Set out a budget for the year, track your expenditures and retained earnings (savings). Yes, all of this looks, feels and is exactly like a well run business. On My Gosh! Don't rush out and buy an accounting package to run your household. And no need to take a crash course on accounting or bookkeeping. You can accomplish all your financial tracking and planning requirements with some paper or by using a simple template with your favorite spreadsheet package - Microsoft Excel or even with Open Office.
Just like a well run business, your household budget and tracking your spending is best served using a visible record of events; namely, financial records, bank or check register. It is just like tracking your road trip progress using a map. If you know where you are now, then you will have some idea when you will arrive at your destination. In life, money or finances allows you to get to your personal destinations or dreams. A visible financial roadmap of your 'Me Incorporated' finances, mapping your progress, seems logical.
Running your 'Household Business', like corporate business, requires a few processes to keep track of your finances:
1) Establish a yearly and monthly household budget. Consider all your expenses - weekly, monthly, quarterly and yearly outlays of money. You will be surprised at the length of this list and all the places you spend your money.
2) Track monthly your actually spending and income against the budget you established in step 1. This will help you see the 'peaks and valleys' of spending or seasonality aspect of your expenses. Over time, you will come to know these expense 'peaks and valleys' and this will help you maintain a positive cash flow. Bottom line: have money in the bank to pay all your expenses and still have some left over (retained earnings). Your single biggest challenge in running any household (or business) is always having enough money in the bank to pay the bills; especially, the unexpected ones. Having a buffer of savings will help with these 'peaks' in expenses.
3) Track all your bank account activity. Track and enter in your Bank or Check Register every deposit, every electronic (ATM, web, PayPal, debit machine) transaction and every analog (check, money order) withdrawal. And reconcile your bank statement every month. Know exactly how much money you have available in your bank account(s).
4) Especially track your spending through credit cards and lines of credit. These are potentially the 'run away' expenses. Remember only once a month do you see the visible record of your credit card spending. Compound that with the fact that most people have more than one credit card. This can easily result in multiple 'spending surprises' each month. Be diligent in tracking your use of credit card transactions. Breakdown the credit card expenses into their respective budget items - gas, groceries, clothing, entertainment, etc. This will help you separate normal household expenditures from other shopping incidentals. You will come to see your spending patterns and can now make adjustments. Just like your bank account, reconcile your credit card statement every month.
Like any good 'household business', you need to do some planning. Set out a budget for the year, track your expenditures and retained earnings (savings). Yes, all of this looks, feels and is exactly like a well run business. On My Gosh! Don't rush out and buy an accounting package to run your household. And no need to take a crash course on accounting or bookkeeping. You can accomplish all your financial tracking and planning requirements with some paper or by using a simple template with your favorite spreadsheet package - Microsoft Excel or even with Open Office.
Just like a well run business, your household budget and tracking your spending is best served using a visible record of events; namely, financial records, bank or check register. It is just like tracking your road trip progress using a map. If you know where you are now, then you will have some idea when you will arrive at your destination. In life, money or finances allows you to get to your personal destinations or dreams. A visible financial roadmap of your 'Me Incorporated' finances, mapping your progress, seems logical.
Running your 'Household Business', like corporate business, requires a few processes to keep track of your finances:
1) Establish a yearly and monthly household budget. Consider all your expenses - weekly, monthly, quarterly and yearly outlays of money. You will be surprised at the length of this list and all the places you spend your money.
2) Track monthly your actually spending and income against the budget you established in step 1. This will help you see the 'peaks and valleys' of spending or seasonality aspect of your expenses. Over time, you will come to know these expense 'peaks and valleys' and this will help you maintain a positive cash flow. Bottom line: have money in the bank to pay all your expenses and still have some left over (retained earnings). Your single biggest challenge in running any household (or business) is always having enough money in the bank to pay the bills; especially, the unexpected ones. Having a buffer of savings will help with these 'peaks' in expenses.
3) Track all your bank account activity. Track and enter in your Bank or Check Register every deposit, every electronic (ATM, web, PayPal, debit machine) transaction and every analog (check, money order) withdrawal. And reconcile your bank statement every month. Know exactly how much money you have available in your bank account(s).
4) Especially track your spending through credit cards and lines of credit. These are potentially the 'run away' expenses. Remember only once a month do you see the visible record of your credit card spending. Compound that with the fact that most people have more than one credit card. This can easily result in multiple 'spending surprises' each month. Be diligent in tracking your use of credit card transactions. Breakdown the credit card expenses into their respective budget items - gas, groceries, clothing, entertainment, etc. This will help you separate normal household expenditures from other shopping incidentals. You will come to see your spending patterns and can now make adjustments. Just like your bank account, reconcile your credit card statement every month.
Top 5 Reasons to Avoid Store Cards
Store cards are a form of credit card where a consumers can spend on the card and then either repay the balance in full at the end of each month in order to avoid interest, or can spread the repayments on the card over a period of time, in which case interest will be charged on the balance until it has been repaid in full. Although more and more shops are now offering store cards, there are not many benefits to having these cards and they can quickly lead to mounting debt for the consumer. Below you will find five of the top reasons to avoid taking out store cards:
1. The interest rates. The rate of interest charged on most store cards if the balance is not repaid in full at the end of each month can be extremely high, and can quickly add to the balance, leaving the cardholder in increasing debt. Those that make minimum repayments on the card will fare particularly badly as they will be the ones that are hit hardest by the interest payments.
2. Temptation. Store cards are well known for increasing the chances of impulse buying, and many sales staff at shops bank on consumers' impulsive streaks in order to get them to sign up for a card. When you sign up for a store card you often end up purchasing something you would otherwise not have bought simply because the salesperson offers you a discount for taking out the card. In addition, future discounts may encourage you to make purchases that are unnecessary, and if you don't repay the balance in the interest free period any discount will be counteracted by interest charges anyway.
3. No cash transaction facilities. A store card does not enable you to make cash withdrawals and transactions, and this means that if you need cash in an emergency you will certainly not be able to rely on your store card. You would be far better off with a credit card, as this allows you to withdraw cash or make cash transactions should you need to, although these are best avoided wherever possible due to high charges that are applied.
4. Restrictions of use. With a store card you are very restricted in terms of where you can use it. You can only use your store card in a particular shop or chain of shops, and this means that you have very little in the way of choice. You may be able to get the same or a similar product cheaper elsewhere but may end up going for the most expensive one simply because you have a store card for that particular retailer.
5. False economy. Many store cards offer a range of discounts to cardholders when it comes to their products. However, unless you tend to repay your balance in full at the end of each month -in which case you would fare far better with a rewards based credit card due to increased freedom and a choice of rewards- any discounts would be counteracted by the very high rates of interest charged on your balance.
1. The interest rates. The rate of interest charged on most store cards if the balance is not repaid in full at the end of each month can be extremely high, and can quickly add to the balance, leaving the cardholder in increasing debt. Those that make minimum repayments on the card will fare particularly badly as they will be the ones that are hit hardest by the interest payments.
2. Temptation. Store cards are well known for increasing the chances of impulse buying, and many sales staff at shops bank on consumers' impulsive streaks in order to get them to sign up for a card. When you sign up for a store card you often end up purchasing something you would otherwise not have bought simply because the salesperson offers you a discount for taking out the card. In addition, future discounts may encourage you to make purchases that are unnecessary, and if you don't repay the balance in the interest free period any discount will be counteracted by interest charges anyway.
3. No cash transaction facilities. A store card does not enable you to make cash withdrawals and transactions, and this means that if you need cash in an emergency you will certainly not be able to rely on your store card. You would be far better off with a credit card, as this allows you to withdraw cash or make cash transactions should you need to, although these are best avoided wherever possible due to high charges that are applied.
4. Restrictions of use. With a store card you are very restricted in terms of where you can use it. You can only use your store card in a particular shop or chain of shops, and this means that you have very little in the way of choice. You may be able to get the same or a similar product cheaper elsewhere but may end up going for the most expensive one simply because you have a store card for that particular retailer.
5. False economy. Many store cards offer a range of discounts to cardholders when it comes to their products. However, unless you tend to repay your balance in full at the end of each month -in which case you would fare far better with a rewards based credit card due to increased freedom and a choice of rewards- any discounts would be counteracted by the very high rates of interest charged on your balance.
Top 5 Tips on Easing the Financial Hangover
After Christmas and New Year celebrations have finished many of us find that we are left feeling tired, drained of energy, and worse still drained of money. The Christmas period can be a very financially demanding one, and once the festive season is over many of us take stock of our finances only to discover that we have spent far more than we originally planned leaving us facing financial difficulties.
In order to ease the financial hangover that can hit many of us at this time of year there are a number of steps that you can take. This include:
1. Check whether you can get a better deal on your credit card. If you have used your credit card to fund Christmas and you are being charged a high rate of interest you may find that one way to save money is to switch your card to another type of card, such as a 0% balance transfer card, which will allow you additional time without being charged interest to repay your balance. This could save you a small fortune in terms of interest.
2. Could consolidation help? If you have accrued a fair amount of debt over the Christmas period with store cards, credit cards, loans, etc. and you already had some debt prior to this you may find that one effective solution is to wrap up all of these debts into one lower rate consolidation loan. This will ease financial management for you and could save you a fortune in interest. It could also help to reduce the amount that you pay out each month.
3. Cut out your unnecessary spending. Most of us splash out more on going out, buying clothes, and treating ourselves over the festive season, but you should avoid continuing this into the New Year. Try making a few cutbacks when it comes to shopping for non-essentials and going out - the money you save could be put towards the debt you have accrued over Christmas or you could put it aside in savings towards next Christmas.
4. Don't hoard what you don't need. Let's face it - we all get presents over the Christmas period that we did not really want and will not use. If this is the case why not look at getting rid of some of these gifts rather than hoarding them for prosperity. With portals such as Ebay available, selling your unwanted goods needn't be a hassle, and you could raise a fair amount of cash to put towards repayment of your debts.
5. List where you can make savings. Go through your accounts and make a list of services on which you could save money, such as your car insurance, home insurance, utilities, broadband, etc. Then use the various price comparison sites to see whether you could save money compared to what you are currently paying. If so, make the switch and you could soon be saving a small fortune each month to put towards repayment of your debt.
In order to ease the financial hangover that can hit many of us at this time of year there are a number of steps that you can take. This include:
1. Check whether you can get a better deal on your credit card. If you have used your credit card to fund Christmas and you are being charged a high rate of interest you may find that one way to save money is to switch your card to another type of card, such as a 0% balance transfer card, which will allow you additional time without being charged interest to repay your balance. This could save you a small fortune in terms of interest.
2. Could consolidation help? If you have accrued a fair amount of debt over the Christmas period with store cards, credit cards, loans, etc. and you already had some debt prior to this you may find that one effective solution is to wrap up all of these debts into one lower rate consolidation loan. This will ease financial management for you and could save you a fortune in interest. It could also help to reduce the amount that you pay out each month.
3. Cut out your unnecessary spending. Most of us splash out more on going out, buying clothes, and treating ourselves over the festive season, but you should avoid continuing this into the New Year. Try making a few cutbacks when it comes to shopping for non-essentials and going out - the money you save could be put towards the debt you have accrued over Christmas or you could put it aside in savings towards next Christmas.
4. Don't hoard what you don't need. Let's face it - we all get presents over the Christmas period that we did not really want and will not use. If this is the case why not look at getting rid of some of these gifts rather than hoarding them for prosperity. With portals such as Ebay available, selling your unwanted goods needn't be a hassle, and you could raise a fair amount of cash to put towards repayment of your debts.
5. List where you can make savings. Go through your accounts and make a list of services on which you could save money, such as your car insurance, home insurance, utilities, broadband, etc. Then use the various price comparison sites to see whether you could save money compared to what you are currently paying. If so, make the switch and you could soon be saving a small fortune each month to put towards repayment of your debt.
No BS Talk About Personal Finance
Below is a straight-talk, no bullshit article about personal finance:
1. You must have an earnings. This is basic, of course if you don't have an earnings, then you actually have no money thus nothing to manage. Look for something you love to do and earn from it - be it as an employee or as an entrepreneur. It doesn't really matter. What matter is that you "enjoy" what you do and at the same time earn from it. Why I suggest that you enjoy what you do and earn from it? So that it doesn't feel like work and you'll not feel burnt out. If you don't have a job, you can contact me.
2. Make sure your earnings are higher than your expenses. This is also important as you've got to have excess money to save up for "future needed funds". If you're earnings are lower than your expenses, you can either add-up another source of income (meaning, you don't have to leave what you currently do) or look for a better paying gig (meaning, don't waste your time and efforts in what you do, look for a greener pasteur). If you already have a job but wants to have another source of income or wants a better career, you can contact me.
3. Make sure to have a "6 months emergency fund". In USA, their only suggested to have a 3 months emergency fund. But here in the Philippines, there is no suggestions or whatsoever from the government. So, a lot of financial planners suggest people to have at least 6 months emergency fund. So if you're spending P10,000.00 every month, you should have an emergency fund of equivalent to P60,000.00. This fund will and only be used in case you temporarily loss income. This will be the fund you'll use while looking for another job or looking for another source of income. Your emergency fund should be placed in a very liquid investment instrument such as the savings account, a time deposit account, etc.
4. Make sure to have a yearly budget for health and medical bills. You don't want to use up your emergency fund should you or your family have a medical emergency. You and your family should have a health plan so that in the event that you or your family get sick or experienced an accident, you're well prepared for it. Your emergency fund is not intended for health or medical expenses so you better have a health plan. If you still don't have a health plan or wants to change your existing plan, you can contact me.
5. Make sure you have budget for different one-time big-time yearly expenses. One-time big-time yearly expenses are called Sinking Fund. This is used for one-time big-time yearly expenses such as Christmas, Valentines, Birthdays, etc. You should have a sinking fund for each and every one-time big-time yearly expenses you have where you save money on a monthly basis. You should never use your emergency funds for this.
6. If you have kids, make sure you have a budget for their education until they graduate. This is your responsibility as a parent thus it is NOT optional. You don't have a choice but to have this one. This is a packaged-deal for having kids. Tuition fees and other school needs increase every year, just like anything else, because of inflation. Unless you're a super dooper mega over rich person, you won't be needing to save up for your child's education. An educational plan can help you attain this one. I know that CAP, TPG, Pacific, and other preneed companies failed to deliver their promise on their educational plan holders. But a life insurance company is very much different to a preneed company. You should not be confused. A life insurance is a financial industry more like of a bank. It is strictly governed by a separate government entity called the Insurance Commission. There's a lot to talk about life insurance and this article is not the avenue for it as this is a straight-talk, no bullshit article about personal finance. Be closed-minded on these things, and you'll risk your child's future. I tell you, you can not save up for your child's education by yourself unless of course you have the "skill and knowledge" that most professional investors have. If you wish to know more about the education plans that life insurance companies offer, you can contact me.
7. In relation to number six, make sure you have a life insurance. A life insurance is a financial product used in the event of permanent income-loss due to total disability or worse, death. Your life insurance coverage (coverage is the amount that will be given to your beneficiaries (your spouse and/or children) in the event of your permanent income-loss) will depend on the lifestyle that your family have. If you don't have a life insurance or should you wish to know if your coverage is already enough for your family or not, you can contact me.
8. Make sure you have a retirement fund. This fund will be used by you by the time you no longer "actively" work for money (whether intentionally or unintentionally) for your daily/monthly expenses. Of course all of us will retire eventually whether by force or by choice. In this event, even though you've already retired from working, it doesn't mean that your expenses will also retire. It doesn't work like that. You retire from working for money but your expenses don't retire in asking for money. So, you've got to have a retirement fund for your expenses such as food, shelter, clothing, transpo, communication, medical/hospital, etc. The amount of your retirement fund will depend on your chosen lifestyle. You can never accumulate your needed funds in a savings account. You should use one or any or combination of different investment instruments such as stocks, bonds, real estate, mutual funds, UITF's, life insurance, variable life insurance, forex, etc.
1. You must have an earnings. This is basic, of course if you don't have an earnings, then you actually have no money thus nothing to manage. Look for something you love to do and earn from it - be it as an employee or as an entrepreneur. It doesn't really matter. What matter is that you "enjoy" what you do and at the same time earn from it. Why I suggest that you enjoy what you do and earn from it? So that it doesn't feel like work and you'll not feel burnt out. If you don't have a job, you can contact me.
2. Make sure your earnings are higher than your expenses. This is also important as you've got to have excess money to save up for "future needed funds". If you're earnings are lower than your expenses, you can either add-up another source of income (meaning, you don't have to leave what you currently do) or look for a better paying gig (meaning, don't waste your time and efforts in what you do, look for a greener pasteur). If you already have a job but wants to have another source of income or wants a better career, you can contact me.
3. Make sure to have a "6 months emergency fund". In USA, their only suggested to have a 3 months emergency fund. But here in the Philippines, there is no suggestions or whatsoever from the government. So, a lot of financial planners suggest people to have at least 6 months emergency fund. So if you're spending P10,000.00 every month, you should have an emergency fund of equivalent to P60,000.00. This fund will and only be used in case you temporarily loss income. This will be the fund you'll use while looking for another job or looking for another source of income. Your emergency fund should be placed in a very liquid investment instrument such as the savings account, a time deposit account, etc.
4. Make sure to have a yearly budget for health and medical bills. You don't want to use up your emergency fund should you or your family have a medical emergency. You and your family should have a health plan so that in the event that you or your family get sick or experienced an accident, you're well prepared for it. Your emergency fund is not intended for health or medical expenses so you better have a health plan. If you still don't have a health plan or wants to change your existing plan, you can contact me.
5. Make sure you have budget for different one-time big-time yearly expenses. One-time big-time yearly expenses are called Sinking Fund. This is used for one-time big-time yearly expenses such as Christmas, Valentines, Birthdays, etc. You should have a sinking fund for each and every one-time big-time yearly expenses you have where you save money on a monthly basis. You should never use your emergency funds for this.
6. If you have kids, make sure you have a budget for their education until they graduate. This is your responsibility as a parent thus it is NOT optional. You don't have a choice but to have this one. This is a packaged-deal for having kids. Tuition fees and other school needs increase every year, just like anything else, because of inflation. Unless you're a super dooper mega over rich person, you won't be needing to save up for your child's education. An educational plan can help you attain this one. I know that CAP, TPG, Pacific, and other preneed companies failed to deliver their promise on their educational plan holders. But a life insurance company is very much different to a preneed company. You should not be confused. A life insurance is a financial industry more like of a bank. It is strictly governed by a separate government entity called the Insurance Commission. There's a lot to talk about life insurance and this article is not the avenue for it as this is a straight-talk, no bullshit article about personal finance. Be closed-minded on these things, and you'll risk your child's future. I tell you, you can not save up for your child's education by yourself unless of course you have the "skill and knowledge" that most professional investors have. If you wish to know more about the education plans that life insurance companies offer, you can contact me.
7. In relation to number six, make sure you have a life insurance. A life insurance is a financial product used in the event of permanent income-loss due to total disability or worse, death. Your life insurance coverage (coverage is the amount that will be given to your beneficiaries (your spouse and/or children) in the event of your permanent income-loss) will depend on the lifestyle that your family have. If you don't have a life insurance or should you wish to know if your coverage is already enough for your family or not, you can contact me.
8. Make sure you have a retirement fund. This fund will be used by you by the time you no longer "actively" work for money (whether intentionally or unintentionally) for your daily/monthly expenses. Of course all of us will retire eventually whether by force or by choice. In this event, even though you've already retired from working, it doesn't mean that your expenses will also retire. It doesn't work like that. You retire from working for money but your expenses don't retire in asking for money. So, you've got to have a retirement fund for your expenses such as food, shelter, clothing, transpo, communication, medical/hospital, etc. The amount of your retirement fund will depend on your chosen lifestyle. You can never accumulate your needed funds in a savings account. You should use one or any or combination of different investment instruments such as stocks, bonds, real estate, mutual funds, UITF's, life insurance, variable life insurance, forex, etc.
Remove Foreclosure From Your Credit Report in Less than 7-10 Years
It is really no secret that homeowners are often cajoled into agreeing to expensive payment plans or selling homes that they have worked their whole lives to purchase, simply to keep themselves out of foreclosure and pay the lender several thousand more dollars to keep their homes for a few more months. They are threatened with the impossibility of getting a loan after foreclosure or even being able to rent an apartment in many cases. But is it really a drawback for former homeowners not to be able to enslave themselves to a corrupt banking industry propped up by theft through government inflation?
Obviously, having a low credit score is entirely irrelevant to the person who relies only on himself to pay his way through life. Maintaining a great score in order to be able to increase limits on credit cards, buy homes with subprime adjustable-rate mortgages, and get a shiny new car every two years purchased with the money of others should not create a strong desire on the part of homeowners who have previously found themselves in the credit trap.
So, on the one hand, many homeowners will simply want to unplug from the system entirely, and live a voluntary life of sustaining themselves through their own efforts and productive work, while living within their means. Living independently without a credit score and credit history to worry about can be extremely fulfilling.
But on the other hand, there is also a privacy concern for many people, who do not want just anyone to be able to pull their credit, see that they have had a foreclosure, and send them unsolicited mail for more low-end credit. Thus, removing the foreclosure and as much negative information as possible may be a worthy goal for homeowners, to sanitize their credit report and move on without its use and without worrying about the past.
There are really only two ways to get a foreclosure off of a credit record. The first is relatively easy but takes a long time, whereas the second is quite difficult but can be result in the immediate removal of foreclosure from a credit report.
The first option every foreclosure victim has is to wait the 7-10 years (depending on all the circumstances, state, etc.) for the foreclosure to drop off of the credit report automatically. The credit agencies may keep reporting it after this period of time, but a few letters can have it removed after the time for its reporting has expired. In the meantime, the homeowner who does not wish to use credit any longer will simply have to wait it out. For those who do wish to keep themselves chained to the debt machine, even after foreclosure, the best thing to do may be to focus on building new, better credit records and put some time between themselves and the foreclosure. New lenders will give an old foreclosure less weight than 5 subsequent years of on-time payments, for instance.
The second way is to have the original lender remove the record from the credit report. Obviously, this is much more difficult than waiting nearly a decade, and lenders are not too willing to do this. However, it can be done the same way that consumers clean up their credit reports every day in other circumstances. Just dispute the debt, threaten the bank, sue the bank, sue the credit agencies, file complaints with regulatory agencies, and so on, until they realize that it is just easier to get rid of a crazy person by removing the foreclosure, rather than spend more time and money explaining its existence and accumulating complaints. Playing this role can often be very entertaining and enlightening for those cleaning up their credit reports, because they will experience first-hand how the bureaucrats and banks work together hand-in-hand against the average person.
Another tactic that homeowners may want to consider is emailing every single employee/officer of the bank whose email address they can locate and informing them that the complaints, letters, and negative press will continue until they remove the listing. Some lenders even publish company directories with email addresses of presidents, VPs, and directors. Again, there are no guarantees and this process is not easy, but the lender may eventually give in and remove the foreclosure or account altogether.
But it is completely up to the mortgage company as to what information is reported to the credit agencies. Especially if they have made some mistakes/violations, there is a good reason to start complaining and disputing. And all banks violate rules and laws all day, every day, because there are simply too many laws that contradict each other. It takes literally months for any of the disputes to be resolved, but this is significantly less time to worry about a foreclosure than waiting nearly a decade for it to drop off of the credit history automatically.
Obviously, having a low credit score is entirely irrelevant to the person who relies only on himself to pay his way through life. Maintaining a great score in order to be able to increase limits on credit cards, buy homes with subprime adjustable-rate mortgages, and get a shiny new car every two years purchased with the money of others should not create a strong desire on the part of homeowners who have previously found themselves in the credit trap.
So, on the one hand, many homeowners will simply want to unplug from the system entirely, and live a voluntary life of sustaining themselves through their own efforts and productive work, while living within their means. Living independently without a credit score and credit history to worry about can be extremely fulfilling.
But on the other hand, there is also a privacy concern for many people, who do not want just anyone to be able to pull their credit, see that they have had a foreclosure, and send them unsolicited mail for more low-end credit. Thus, removing the foreclosure and as much negative information as possible may be a worthy goal for homeowners, to sanitize their credit report and move on without its use and without worrying about the past.
There are really only two ways to get a foreclosure off of a credit record. The first is relatively easy but takes a long time, whereas the second is quite difficult but can be result in the immediate removal of foreclosure from a credit report.
The first option every foreclosure victim has is to wait the 7-10 years (depending on all the circumstances, state, etc.) for the foreclosure to drop off of the credit report automatically. The credit agencies may keep reporting it after this period of time, but a few letters can have it removed after the time for its reporting has expired. In the meantime, the homeowner who does not wish to use credit any longer will simply have to wait it out. For those who do wish to keep themselves chained to the debt machine, even after foreclosure, the best thing to do may be to focus on building new, better credit records and put some time between themselves and the foreclosure. New lenders will give an old foreclosure less weight than 5 subsequent years of on-time payments, for instance.
The second way is to have the original lender remove the record from the credit report. Obviously, this is much more difficult than waiting nearly a decade, and lenders are not too willing to do this. However, it can be done the same way that consumers clean up their credit reports every day in other circumstances. Just dispute the debt, threaten the bank, sue the bank, sue the credit agencies, file complaints with regulatory agencies, and so on, until they realize that it is just easier to get rid of a crazy person by removing the foreclosure, rather than spend more time and money explaining its existence and accumulating complaints. Playing this role can often be very entertaining and enlightening for those cleaning up their credit reports, because they will experience first-hand how the bureaucrats and banks work together hand-in-hand against the average person.
Another tactic that homeowners may want to consider is emailing every single employee/officer of the bank whose email address they can locate and informing them that the complaints, letters, and negative press will continue until they remove the listing. Some lenders even publish company directories with email addresses of presidents, VPs, and directors. Again, there are no guarantees and this process is not easy, but the lender may eventually give in and remove the foreclosure or account altogether.
But it is completely up to the mortgage company as to what information is reported to the credit agencies. Especially if they have made some mistakes/violations, there is a good reason to start complaining and disputing. And all banks violate rules and laws all day, every day, because there are simply too many laws that contradict each other. It takes literally months for any of the disputes to be resolved, but this is significantly less time to worry about a foreclosure than waiting nearly a decade for it to drop off of the credit history automatically.
Diet of Financial Abuse - Have you Packed on the Pounds in Investment Defeating Costs of Living
Financial Abuse costs you more than money. The reality is when you abuse your budget you pay with retirement, child care costs, health costs, and other fees too numerous to mention. So what can you do about it?
These suggestions will help you put in place a financial management system that works effectively all the time, every time, to save you money.
Meal Time Planning and Freedom
As a parent you may believe, mistakenly, that if you don't prepare food for your child for every meal, your child will be permanently damaged. Sometimes you need to allow your children to fend for themselves, and prepare exactly what they want to eat. (I'm not talking two year old cooking stew here, I'm talking simple meals anyone can prepare.)
Growing up, my family had Fend for Yourself Night once a week. Everyone prepared something they wanted from a specific selection and had a great meal, filled up their belly, and didn't break the bank. From a selection of ramen noodles, frozen veggies, fresh veggies, fruit, breads, and a few small canned meats and soups, we were allowed to prepare what we wanted. The only rule was it couldn't be fast food, and it had to be somewhat healthy (no candy bar/soda pop dinners). My favorite meal was buttered wheat toast, fruit, and tea. My tummy was happy, mom was content, and I didn't have to work hard. It's still my favorite fast food meal.
How often do you grab McDonalds or Arby's because you're out of time? Is it really faster to drive across town than to pop bread into the toaster. Top toast with peanut butter and add a banana or an apple and you've got a healthy FAST meal, that only cost you pennies. No, you can't do that for every meal, but why abuse the fast food privilege? Why not use that option only for special times, when you really want to spend that money?
The best part of Fend for Yourself Night, it teaches children to prepare simple foods for themselves, a skill they'll need in college, that will keep them healthy and well fed on a limited and very SMALL budget?
I remember my daughter calling home and saying she'd been careless with her money, but she still had food for the last week of the month. I asked what she had, and she told me she still had peanut butter, two cans of tuna, two cans of pineapple, a case of ramen noodles, several cans of veggies and fruit, a can or two of pudding, and a box of tea bags. She had eighty-five cents for a loaf of bread. She restocked her supplies on the next paycheck, and was happy eating at the dorm until she got paid.
These suggestions will help you put in place a financial management system that works effectively all the time, every time, to save you money.
Meal Time Planning and Freedom
As a parent you may believe, mistakenly, that if you don't prepare food for your child for every meal, your child will be permanently damaged. Sometimes you need to allow your children to fend for themselves, and prepare exactly what they want to eat. (I'm not talking two year old cooking stew here, I'm talking simple meals anyone can prepare.)
Growing up, my family had Fend for Yourself Night once a week. Everyone prepared something they wanted from a specific selection and had a great meal, filled up their belly, and didn't break the bank. From a selection of ramen noodles, frozen veggies, fresh veggies, fruit, breads, and a few small canned meats and soups, we were allowed to prepare what we wanted. The only rule was it couldn't be fast food, and it had to be somewhat healthy (no candy bar/soda pop dinners). My favorite meal was buttered wheat toast, fruit, and tea. My tummy was happy, mom was content, and I didn't have to work hard. It's still my favorite fast food meal.
How often do you grab McDonalds or Arby's because you're out of time? Is it really faster to drive across town than to pop bread into the toaster. Top toast with peanut butter and add a banana or an apple and you've got a healthy FAST meal, that only cost you pennies. No, you can't do that for every meal, but why abuse the fast food privilege? Why not use that option only for special times, when you really want to spend that money?
The best part of Fend for Yourself Night, it teaches children to prepare simple foods for themselves, a skill they'll need in college, that will keep them healthy and well fed on a limited and very SMALL budget?
I remember my daughter calling home and saying she'd been careless with her money, but she still had food for the last week of the month. I asked what she had, and she told me she still had peanut butter, two cans of tuna, two cans of pineapple, a case of ramen noodles, several cans of veggies and fruit, a can or two of pudding, and a box of tea bags. She had eighty-five cents for a loaf of bread. She restocked her supplies on the next paycheck, and was happy eating at the dorm until she got paid.
Smart Consumers Save Money with Gas Rebate Credit Cards
Help offset rising gasoline expenses by paying with cards that pay you back each time you fill up the tank.
Prices at the pump continue to skyrocket, leaving most Americans frustrated and stressed by budgets that are strained to the limit. High gas prices shocked consumers and made headlines a couple of years ago, but by now everyone knows that they are here as a permanent reality. The only news worth mentioning nowadays is practical advice on how to survive the rising expense of fueling our cars, trucks, SUVs, recreational vehicles, boats, and other kinds of miscellaneous gas-powered equipment.
But many consumer experts recommend a simple and straightforward solution that offers a direct way to address the problem. Credit cards that offer cash rebates and other benefits are not only safe and convenient for buying gas, but they offer significant savings that go directly back into your wallet, not into your fuel tank. By buying gas and other items with the right card - or the right combination of different cards - you can offset the financial impact of overpriced gasoline without paying added fees, high interest rates, or hidden costs.
The credit markets are in turmoil because of the spillover of problems related to bad mortgage loans, and banks and other lenders who offer credit cards are competing fiercely to get your business as their own profits get pinched. Take advantage of their generous offers while you still have the chance and you can leverage the bleak situation to your own advantage by paying less for gasoline.
For example, dozens of major credit cards now offer a wide range of benefits, cash-back offers, and other incentives for using plastic, including these:
* Apply for some cards and they will give you $50 back after your first purchase.
* Many cards pay 5 percent or more cash back to you for ordinary purchases such as gas, groceries, or prescription medications at the local drug store.
* Some combine these rebates with other perks; such as coupons you can redeem for merchandise or travel upgrades.
* The more you use some cards, the more cash you earn. Use these types of cards often enough to qualify for preferred card user status - which isn't hard if you buy gas on a regular basis - and companies will even throw in other gifts and cash rewards.
* Lots of cards do matching programs; so that for every dollar you spend you get a bonus point. Many offer double rebates, to double your points or cash savings.
* Apply for many of these popular cards and you can get a free signing bonus worth, for instance, as many as 12,000 bonus miles that you can redeem for travel awards with any airline without restrictions on which dates you fly.
* An important feature of the best rebate cards is that they do not charge you any annual fee, unlike most frequent flier or frequent user programs that charge as much as $100 or more just to join and be a member.
With lots of these cards you can also get zero percent financing for up to a full year on all your purchases and credit card balance transfers. So if you have costly credit card debt you can switch it to a rebate card and make money in a matter of minutes. Say, for example, that you owe $3,000 on a credit card that is charging you 18 percent interest. Shift that balance to a zero percent card and you automatically save yourself 18 percent interest, which is approximately $540 or nearly 50 bucks a month.
On top of that instant interest rate savings you will, of course, still be entitled to whatever rebates and benefits the card offers. That kind of consumer strategy is like giving yourself an unexpected payroll raise. Soon the credit card company of your choice will be pitching in to pay for your gas each time you fill up the tank. That is a great way to manage your finances in partnership with those who issue plastic, during these challenging economic times.
Prices at the pump continue to skyrocket, leaving most Americans frustrated and stressed by budgets that are strained to the limit. High gas prices shocked consumers and made headlines a couple of years ago, but by now everyone knows that they are here as a permanent reality. The only news worth mentioning nowadays is practical advice on how to survive the rising expense of fueling our cars, trucks, SUVs, recreational vehicles, boats, and other kinds of miscellaneous gas-powered equipment.
But many consumer experts recommend a simple and straightforward solution that offers a direct way to address the problem. Credit cards that offer cash rebates and other benefits are not only safe and convenient for buying gas, but they offer significant savings that go directly back into your wallet, not into your fuel tank. By buying gas and other items with the right card - or the right combination of different cards - you can offset the financial impact of overpriced gasoline without paying added fees, high interest rates, or hidden costs.
The credit markets are in turmoil because of the spillover of problems related to bad mortgage loans, and banks and other lenders who offer credit cards are competing fiercely to get your business as their own profits get pinched. Take advantage of their generous offers while you still have the chance and you can leverage the bleak situation to your own advantage by paying less for gasoline.
For example, dozens of major credit cards now offer a wide range of benefits, cash-back offers, and other incentives for using plastic, including these:
* Apply for some cards and they will give you $50 back after your first purchase.
* Many cards pay 5 percent or more cash back to you for ordinary purchases such as gas, groceries, or prescription medications at the local drug store.
* Some combine these rebates with other perks; such as coupons you can redeem for merchandise or travel upgrades.
* The more you use some cards, the more cash you earn. Use these types of cards often enough to qualify for preferred card user status - which isn't hard if you buy gas on a regular basis - and companies will even throw in other gifts and cash rewards.
* Lots of cards do matching programs; so that for every dollar you spend you get a bonus point. Many offer double rebates, to double your points or cash savings.
* Apply for many of these popular cards and you can get a free signing bonus worth, for instance, as many as 12,000 bonus miles that you can redeem for travel awards with any airline without restrictions on which dates you fly.
* An important feature of the best rebate cards is that they do not charge you any annual fee, unlike most frequent flier or frequent user programs that charge as much as $100 or more just to join and be a member.
With lots of these cards you can also get zero percent financing for up to a full year on all your purchases and credit card balance transfers. So if you have costly credit card debt you can switch it to a rebate card and make money in a matter of minutes. Say, for example, that you owe $3,000 on a credit card that is charging you 18 percent interest. Shift that balance to a zero percent card and you automatically save yourself 18 percent interest, which is approximately $540 or nearly 50 bucks a month.
On top of that instant interest rate savings you will, of course, still be entitled to whatever rebates and benefits the card offers. That kind of consumer strategy is like giving yourself an unexpected payroll raise. Soon the credit card company of your choice will be pitching in to pay for your gas each time you fill up the tank. That is a great way to manage your finances in partnership with those who issue plastic, during these challenging economic times.
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