Finance for non-Finance Professionals

Budgeting – The faithful ally for your turbulent times

noreply@blogger.com (Nor) — Tue, 22 May 2012 13:18:00 +0000

Budgeting helps you make the most of your money. As the economy has still not been able to get back the perfect balance, it has become almost impossible for many to even earn money to support themselves. So, managing the debt payments is supposed to be a tough thing. But, if you can follow a proper budget from the beginning, it may become easier for you to manage all of your expenses along with the debt payments. Thus, budgeting if done properly can serve as a debt relief option for you.

Budgeting and financial planning

Creating a budget is not that tough a job. You can do it of your own or else, you can also try using a budget tool or software. Budgeting helps you actually to determine as to how much you actually are required to spend based on your expenses. Budgeting also gives you a sense of security. However, if you really would like to save money and also create a budget, it is important for you to enjoy the whole budgeting process. So, in order to budget, you will be required to:

Refigure the bills you have – Try listing together all of the bill payments to be done by you. Based on that and your affordability, your financial stability, you will be required to plan on the debt payments. In addition, determine the priority of the payments to be made based on the dates.
Prioritize your needs – Try prioritizing the needs so that you can save money on expenditures. Line up the needs in such a way so that the item with high priority is at the top of the list. After this, decide if the items at the end of the list are at all required by you. This may help you lower expenditures and save money.
Purchases should be more meaningful – The purchases which you make should be more meaningful than it was before. Like, purchases should be made based on your necessities but not your likings. There is no point buying a thing that you actually don’t require. If the present economy is to be considered, it is better to try and lower your expenditure as much as possible.
Find a proper budgeting tool – Budgeting tool is a great way to achieve success with budgeting. If you had been budgeting of your own, you can try using budget software. There are some budget tools that provide you alert both positive and negative based on your financial situation and the budget.
Set a savings goal – If you had been simply following a budget and saving money too, without having any goal, it would be better to set a goal for yourself. It is not at all possible to achieve anything without a proper goal and so it is better to set a goal for yourself.
Reward yourself after reaching the goal – After achieving a goal, do reward yourself for that. Like, in order to lower expenditures and you may stop eating out. However, after reaching a goal, you can reward yourself with a lunch at a good restaurant.

All of these together may help you solve your debt problem and in the long run, you may be able to achieve the right kind of change with regards to your problems.

______________________________

This is guest post from Jason Holmes. He is a regular writer with Debt Consolidation Care and is also a contributory writer with other financial sites. His expertise is woven around various aspects of the debt industry and with his e-books he tries to impart to people the different situations and simple solutions to get out of difficult situations. Some of his works include e-books like 'Credit Score The Quintessential Therapy for a Happy Pocket', Take Creditors and Collection Agencies to Small Claims Court' and, My Story- From Depression To a Smile'. Follow him on : http://www.debtconsolidationcare.com/program.html

What are the most common types of debt management?

noreply@blogger.com (Nor) — Tue, 26 Jul 2011 14:40:00 +0000

If you find you're struggling to repay your unsecured debts every month, you'll need to find an approach that can help you manage your debts better - and repay them at a realistic rate.

If this is the case, one potential option is a debt management plan. If you can no longer make your repayments as originally agreed, a debt management plan could allow you to make a reduced payment every month to your unsecured lenders, so you can get back on top of your debts at a rate you can afford.

A debt management plan is an informal agreement between you and your unsecured lenders that is designed to simplify your unsecured debt repayments every month - and get you out of a debt as quickly as you can realistically afford.

You could make your own debt management plan and deal with your lenders directly yourself. However, agreeing one with a professional debt management company could mean all phone calls and letters between you and your unsecured lenders are handled for you - which could make your situation less stressful.

It's important to remember, however, that agreeing to lower monthly payments means you'd be repaying your debts over a longer period - which may increase the overall cost if your lenders don't agree to freeze interest on your debts.

A debt management plan will also show up on your credit record, which can affect your ability to get credit for six years afterwards.

What other ways could I manage my debts?

A debt management plan isn't the only possible approach to repaying your debts.

You may find that tackling your debts with a debt consolidation loan or an Individual Voluntary Arrangement (IVA) is better suited to you personal situation.

An unsecured debt consolidation loan could help you manage your debt more easily - you'd take out a new loan to repay your existing debts. This means you could make just one payment to one lender every month, which may make it easier to keep track of what you owe. Be aware that you must (as with all loans) be able to repay your loan in full - and that it won't be likely to help you if you're seriously struggling with your finances.

Alternatively, if you have significant unsecured debts and you can't afford your payments but can commit to making regular smaller payments, an Individual Voluntary Arrangement (IVA) could see the remainder of your unsecured debts written off on its successful completion, once you've repaid everything you agreed to when you signed the agreement. For more IVA information click here.

However, if you're a homeowner, entering into an IVA means it's very likely you'll have to release some of the equity in your home. And an IVA will affect your credit rating for six years from the day it starts.

Practical Ways to Protect Yourself from Identity Theft

noreply@blogger.com (Nor) — Wed, 23 Mar 2011 14:04:00 +0000

Identity theft is rampant. At least 5 out of 100 people have been victimized. It is worse than getting a contagious disease or being robbed. While your identity is not the real prize, it is merely the tool to get what these cyber thieves really wanted –your money. Your safeguard depends entirely on your vigilance. Identity theft protection is depends on how you handle all the important information about you.

Let me offer you a few practical suggestions to keep your vital information safe.

Create Back-up copies of your important information in a safe place.

These could be photocopies of your SSS Number, IRS, Driver’s License, Credit Cards, and the like. The information contain in these identification will easily useable to thwart any sign of identity theft. Always keep them hand, but safe.

Get an identity protection service.

IdentityHawk is a good choice for this. It was created to help consumers like you to safeguard their assets and identity.

Dispose your credit cards receipts properly.

Don’t simply discard your receipts anywhere. Shred them into fine pieces whenever possible, better yet burn them.

Use your bankcard or ATM cards in secured ATM machines.

This is self-explanatory.

Create a password or PIN combination that is not easily identifiable with any of your basic info.

While you want something that can easily be recalled or something that is identifiable with you, make the combination impossible to guess. Always combine numbers and letters in your passwords.

Do not leave any vital documents in your car.

Again, this is self-explanatory.

Secure all your personal information in your mobile phone and laptop.

These gadgets are the easy target for personal identity theft. Keep your info locked with a password.

Covered Calls for Non-Finance Pro

noreply@blogger.com (Nor) — Sun, 03 Oct 2010 00:32:00 +0000

Day trading or buying and selling stocks is probably one of my career frustrations. I tried once. I resigned from what I thought was a really boring job and jump into a suite that I believed will give more satisfaction and more money in the bank, but I lasted only less than a month. Lesson learned –stock trading is not for me. However, I still want to invest my money on stock options. How do I proceed?

Another option that looks feasible for me is covered call.

To start with, what is exactly a “covered call?” Allow me to borrow this good definition from BornToSell.com:

A covered call is an investment strategy involving two transactions. First, you buy stock (or use stock you already own). Second, you sell a call option against that stock. The combination of being long the stock and short a call option is called "covered call." It is also known as a "buy-write" transaction (because you buy the stock and write (sell) the option).

Simply put, it is a sound and simple an alternative to stock trading. Of course, I do not mean here that you jump the gun immediately with this scheme. First, you need to learn all the basics required to go cautiously with this. Good news though, BornToSell.com offers free tutorial in this department.

The tutorial will not only give you a detailed tour of the world of covered calls but they will also assist you on how to choose the right trades for you via a “covered call screener” and more importantly, they will introduce to covered call portfolio management to help you “maximize the amount of time you receive each month.”

Okay, I might still sound to simplistic there. Let me remind you that this is not another “getting rich quickly” scheme like those proliferating in the net. This means hard work and prudence on your part. You can only succeed in covered calls depending on how you have master the rudiments involve and you make good decisions in each option you buy or sell. Better yet, to get on with your proper education on this, try this “no-obligation 2 week free trial.”

Wish you financial health!

Common Sense Personal Finance Management

noreply@blogger.com (Nor) — Tue, 18 May 2010 06:30:00 +0000

Money management is actually plain common sense. Spend less, earn more, and save more. But only a few have really taken those practical admonitions seriously. Who cares? We love spending! Que sera sera. Heard that? That’s how many of us react whenever we are advised to take our finances seriously.

There is hope though.

You begin by assessing where you are right now with your finances and where you are headed with that prognosis. If you are in debt, you might consider getting a free fico score so that you know, at least from an outside perspective, your current financial credibility. Then make the necessary adjustments.

Personal finance management is easy. You do not only need common sense, but also an ounce of discipline. Discipline means spending only on things that really matters and investing your money on ventures that can steadily generate passive income for you.

Avoid getting trap into the urgency that advertisers are teasing you about. Get out of that rut and get a grip on how you decide on buying things.

Am I making sense?

5 Easy Ways To Cut Your Household Expenses

noreply@blogger.com (Nor) — Thu, 10 Dec 2009 12:38:00 +0000

Are you shocked when seeing your household expenditures every month? The expenses seem to increase every month. If you are in this situation, try these 5 recommendations before your extra paid money will accumulate to a significant amount!

1. Recycle those junk letters.

Each month, you will probably received a dozen or more letters from direct mailing companies in your mailbox. Some of these letters are printed on one side only. Collect these letters and combined them into a writing pad. You can also used them to print draft documents. Besides saving money, you are also saving a lot of trees.

2. Install water saving kit in your toilet cistern.

When flushing the toilet, the amount of water used is usually more than is required. By installing a water saving kit in the cistern, the amount of water saved can be as much as three gallons per month.

3. Use the fan

Whenever possible, use the fan. The air conditioner is a major contributor to your utility bill. By using the fan, not only are you saving on your utility bill, you are also building up your body's tolerance to heat. Your chances of getting heat exhaustion or heat stroke during the hot summer season are greatly reduced.

4. Do not throw away that old bar of soap yet.

As your wash your hands with soap on a daily basis, the bar will become smaller and smaller until it is almost unusable. Instead of throwing it away, simply stick the old bar of soap onto the new one. Just make sure both of them are wet when sticking them together.

5. Cut the tube of toothpaste into half.

When you can no longer squeeze out any toothpaste from the tube, just cut it in-half. There is some more toothpaste left that can last you for a couple of days if you have a large family. If you live alone or with your spouse only, the extra toothpaste can last up to five days or even more.

Start cultivating these useful habits today and make them a part of your daily life. You will be pleasantly pleased when you notice your household expense start to decline bit by bit as time goes on.

Some Notes about Payday Loans

noreply@blogger.com (Nor) — Sat, 05 Dec 2009 18:10:00 +0000

What is payday loan? For the novice, a payday loan is actually another term for cash advance. However, in this case, usually the repayment is committed or made on or before your next payday.

Understandably, most of us run into difficult situations where what we have save in the bank (that is if we have saved at all) cannot cover the expenses, cost or payment you need to make. Without a health insurance for example, hospitalization is costly. Other emergencies can occur from time to time, and payday loans more often can rescue us from these unwelcome predicaments.

Caution though, because not all payday loans are reliable. You need to carefully choose the best lender for your needs. Take the time to study and compare terms, agreements, rates, and interest before you jump into signing. Approval for payday loans is quicker than the regular loans, and more often there lies some of our potential financial woes. So, look into your needs and your ability to pay the soonest possible.

In retrospect, actually you can evade financial problems during emergencies if you would only start saving cash for this purpose. I know, I sound to be nagging here again. It is the truth by the way, and it hurts. Always save for rainy days so you can avoid getting wet or borrowing from somebody’s’ umbrella.

Save More Using Your Car

noreply@blogger.com (Nor) — Sat, 05 Dec 2009 17:48:00 +0000

I know the headline is a bit misleading. For most of us who are budget- conscious, you cannot really save using your car. Commuting is still a better and cheaper alternative. The cost of fuel, car maintenance, and insurance alone can easily put much strain to your finances when overlooked from your financial planning.

When the recession hit us late last year, my first recourse, as many of you have done too, was to cut cost. I sold my SUV and bought a more fuel-efficient and smaller car. And whenever there is an opportunity for me to commute, I commute. One of the perks I get is the time to reflect which I can’t do when I am driving.

However, when auto allowance program such as what CRS (Customer Reimbursement Services) offers, I realized that I can save using my car in attending to my organization’s business. How?
With an auto-allowance or car reimbursement program, you use your car and yet you save because it is tax-free. Moreover, it was designed to be flexible and fair:

Each participating driver is provided with a personalized Driver Reimbursement Schedule which lists every component used to calculate their individual reimbursement rate. Each driver’s rate considers factors such as geographic cost variances, territory conditions and annual business miles.

The key there is considering the ‘geographic cost variances.’ Meaning, the usual cost that you incur when you use your car such as fuel cost and insurance coverage will be aptly covered in the program. Your organization saves, and so do you.

*This post is sponsored.

Stock Trading and Gambling – What’s the Difference?

noreply@blogger.com (Nor) — Tue, 01 Dec 2009 19:26:00 +0000

"When I'm bearish and I sell a stock, each sale must be at a lower level than the previous sale. When I am buying, the reverse is true. I must buy on a rising scale. I don’t buy long stocks on a scale down, I buy on a scale up." ~Jesse Livermore

Did I say that the stock market is the most volatile of all markets?

I admire traders on how they analyze those numbers that scrolling continuously in those boards during a typical trading. Sometimes, I am still finding my bearing whenever I read the day’s trading results on the paper or online. One thing that I am sure of though, the stock market is so volatile that even experts and seasoned analysts can go wrong in their forecast oftentimes. It is no different from casino gambling.

The trading floor and the casino are much alike in many ways. When you go in any of these, you know that the odds are not automatically stacked against you. Warren Buffet is admirable in always predicting a winnable trade, but he also make mistakes. Although in his case, if he loses 1 million dollars on one portfolio, he usually gain 2 million dollars in another. Still, it is a gamble. Lose some, win some.

How to produce unique finance articles everyday

noreply@blogger.com (Nor) — Sun, 18 Oct 2009 03:41:00 +0000

One of the most difficult tasks of being a niche blogger is publishing a unique post on a regular basis. Producing or capturing fresh idea every day, writing a post around it, seems to become an impossible feat. Sometimes, it would even take a month for me to really come up with something unique to blog about. How do a blogger overcome these ‘blogging blocks’?

Here are 3 tips you might want to consider to help you produce unique finance articles everyday:

1. Monitor the stock market. The stock market is volatile. Stock prices varies considerably by the minute. Any stats coming from the federal government, like unemployment rates and consumer index, can push prices up or down. Bankruptcies and declaration of losses coming from prominent or huge companies can cause a knee-jerk reactions in the trading floor, take for example the G.E.’s and Bank to America’s announcement of financial losses last week. Moreover, even important announcements coming from the White House can also directly influence how our stock market behaves. If you are closely monitoring these movements, surely you will not run-out of ideas to blog about finances. Read the business section of the daily regularly, better yet Google it.

2. Read other finance blogs. Get or borrow ideas from them. Don’t forget to link back though. React to what they have written, agreeing, disagreeing or amplifying some points. Thus, instead of making a lengthy comment on their post, write a separate post about it instead.

3. Publish other bloggers’ finance articles. Okay, I know this is the easiest part. But of course, do this with permission. Otherwise, you will be charged with copyright infringements or worse, of blatant plagiarism. If you have no idea where to get these articles, you might want to check out the finance section of ArticleAlley.com.

Happy blogging!

Saving for a Personal Emergency Fund | Essential Element to Effective Money Management

noreply@blogger.com (Nor) — Mon, 27 Jul 2009 22:32:00 +0000

None of us have the ability to foresee the future or predict the hurdles which lie ahead of us. This makes saving for an emergency fund a financial priority. An emergency fund is an essential element for an effective money management. Since you’re rarely given advance notice of a setback or an accident which will keep you out of work for an extended period and suddenly confronted with money problems beyond your control, an emergency fund will always come in handy. It is also your safety net that can save you from bankruptcy or severe financial hardships in the event of an unexpected change in your income or expenses, or obviously in a severe economic downturn like this.

Saving for an emergency fund should be a vital part of an individual’s financial planning. This is of high importance if you don’t already have readily available funds in your account for covering any unanticipated expenses. They provide financial security because they give you funds to fall back on if you become ill, or if you or your spouse loses your job, you incur large medical bills, or have an unexpected large bill such as a major car or home repair. You do not want to end up in a situation where you have to buy daily necessities on credit and end up payments on groceries you bought two years back on credit, with a further 10-18% interest on it.

Saving your money in an small account for emergencies is definitely a better alternative to taking a loan or cashing in your long-term investments. If you take a loan, there is the additional burden of paying interest. Encashment of your investments before maturity means not only will you lose out the interest, but also some part of the original investment. This will also set you back significantly in your overall financial plan.

Success at saving for an emergency fund depends on consistency of saving money on a regular basis, and resisting the urge to dip into this rainy day fund for non-emergencies. This money should be kept separate from the general savings account. Otherwise you will be tempted to dip into these monies even if you simply run over your budget at a certain point. A substantial part of this emergency fund account should be invested in low risk funds. This ensures that your investment does not lose its value in case you need the money. Also, it should be extremely liquid, to give you access to the cash easily and quickly if you need it.

The size of the special savings account will depend on your personal situation. People often keep three to six months’ salary in the reserve. But you will have to decide on an appropriate amount based factors such as your dependents and fixed monthly expenses.

If you are single with no obligations, and have a reliable support system of friends or relatives during a financial crisis, you might not need a substantial amount stashed in this fund. This is opposed to someone who needs to pay nursing costs for his aging parents and supporting a young family. The more people you support, the more likely you are to have unexpected or unplanned costs.

While making a decision about an emergency fund, you should also take into account the degree of difficulty you'd have in finding a new job if you lost the present one. In case of a two-income household, the contribution of both parties should be weighed while calculating how much you should keep aside.

You may not be able to gather your emergency fund money together at once. Treat it as a financial goal and add to the kitty over time. If you get a tax refund, put it in your special rainy day account. Maybe a part of the bonus at work!

Buying Investment in Real Estate during a Recession

noreply@blogger.com (Nor) — Wed, 01 Jul 2009 16:46:00 +0000

While most economists see that the U.S. economy no longer in free fall, I remain apprehensive about buying investment in real estate. You cannot blame a little skepticism on how the projected economic rebound is going, and me, if I remain unhurried.

I share, probably, the sentiments of many that as long as there are no clear and solid indications that this economy is gearing towards recovery, I will keep my money away from any form of investments, especially on property. Although, the current fall in selling prices is too tempting to ignore, for example, the buying and selling mood in Missouri real estate.

Investing always entails many risks. But seasoned and smart investors understand that making sound investment and financial decisions should not only be made based on the condition of the economy and how the market is behaving. There are still other important factors to be considered other than these obvious conditions. In addition, and in fact, we have seen and heard of stories of self-made millionaires who made more money when they invested regardless of the state of the economy.

So, where do these things lead us? The question I posed remains: Should buying investment in real estate during a recession a good financial decision?

In my mind, it is a ‘yes’ and a ‘no’. Yes, because the prevailing low prices in properties on sale and the all time high rates in property foreclosures signify a possible good yield when the economy gets better. Of course, this means taking an optimistic stance. On the other hand, it is a ‘no’ because it could mean having your money tied for an uncertain period of time, with which you could have placed them on other high-yield investment ventures.

In all these, I’d like to take the position of Tim Blixseth, one of America's richest:

I swore I was going to exclusively collect assets and not liabilities for the rest of my life. I swore never to take gambles I couldn’t back up, or that I couldn’t afford to lose. And, I’ve stuck with that ever since.

Save the Money, Save yourself | Saving Tips worth Trying

noreply@blogger.com (Nor) — Tue, 16 Jun 2009 21:07:00 +0000

Money saved is money earned. How many of us believe that, or practice that consistently? I have always believed that when you save a portion of the money that you earned, you will eventually save yourself in times like these.

Alright, there are obviously many ways to save money and lead a frugal life without necessarily becoming a Mr. Scrooge.

Money problems will always torment if we do not learn how to save and practice frugality. It is important to know how to manage money efficiently to ensure bulky savings. We should make it a habit to ask ourselves whether to save a portion of what we have to spend now or whether to spend at all. Here are a few money saving tips worth trying:

First, in case of large investments, you might want to consider seriously the ROI or Return on Investment before you make the decision. The bigger the investment you make, the greater the risks you take. Between buying a brand new and used car, which do you think can provide a good ROI?
Buy in bulk and buy items on sale, but not at the expense of quality.
For financial investments, like stock or day trading, follow the golden rule of buying volatile stocks when the price of an item is down and sell it when it is high. The profit thus earned can be invested in the equity market for steady items.
The internet has provided the best opportunities to shop for the best price before you make a purchase. This means that you can conveniently compare products and prices.
Create a monthly budget to the essential items you need, and stick to it.
Plan what you eat on a daily basis ensuring you hey proper nourishment. You do not only save money from proper food planning, you stay healthy and thus eventually save money from medical expenses.
Pay your bills on time. This way, you save money from interest rates charges and penalties.
Last, but not the least, prioritize, prioritize, and prioritize. When the most important things are taken care of, you will notice you will have surpluses from your budget, which you can add to your savings.

Start saving today!

Recession and Satellite Internet

noreply@blogger.com (Nor) — Tue, 16 Jun 2009 20:19:00 +0000

What is the connection between the two, you probably have asked.

To some degree, there may be a correlation between how fast the internet has encroached our way of living and doing business, and with how and where our economy is headed.

When Alexander Graham Bell made the first call on his new invention, a.k.a. the phone, it awaken the civilization into the possibility of communicating through the wires. With that, the industrial revolution was hastened, commerce grew exponentially, and connecting with other people has been made convenient and easier.

Then the mobile phone came in –you know the rest of the story.

Now, satellite internet. With a cellphone, you can call anyone, anywhere. With a GPS, you will never be lost. Now, with wild blue satellite internet, you can virtually access the wealth of information over the net that is actually perpetually growing every second. The likes of Wild Blue, have enabled internet access possible anywhere and even the in the remotest locations.

Ironically, with this technological breakthrough, we have driven our economy backwards. I am undecided whether this is a simple oversight or an utter neglect on our part. With the advancement of technology and the availability of information, these would have made us better stewards of our resources. But unfortunately, we were not.

3 Important Elements on Day Trading Investing Basics

noreply@blogger.com (Nor) — Mon, 15 Jun 2009 21:44:00 +0000

In my first two years working after college, I was also among many business graduates who got lured into pursuing a career in stock trading and finance portfolio management. In my case though, after a month of training, I lasted only a couple of months. I resigned and took a job on sales instead.

One of the reasons I quit too soon is because I do not have the guts to take the necessary risks in day trading.

The senior stockbroker assigned to train me and monitor my progress is successful to some degree, and he seem to enjoy both the euphoria and frustrations stemming from the results of the day's trading – I don’t.

But over the years, and as I steadily climb the corporate ladder, I began to fully appreciate what is going on the trading floor, although I am now a fence sitter of sort. I bought several stocks and bonds as part of my personal investment, and tried to monitor any changes in their values from time to time.

In my mind, there are at least 3 important elements in day trading investing basics, namely: money, knowledge, and a plan.

Money

In spite of the data and analytical tools available, stock trading is still unpredictable. It is so dynamic that you can be rich overnight, and broke the next day. Hence, you need to be prepared to use money that you can afford to lose. Otherwise, if you have places all your savings upfront, you might find yourself sleeping on the pavement when the trading day is over. The key here is prudence. That is, taking it slowly and building your portfolio from the profits you gained from successful trades, and rolling them out when you deemed favorable.

Knowledge

Never rely entirely on what your financial advisor or your friend tells you. Learn what is going on the floor and in the market. Buy and read good books on the subject, there are many to choose from out there. Read trends and analysis made by experts online or from newspapers.

If you are contemplating day trading as a career path, you might want to consider getting the right training from the experts like what they offer at TradingAcademy.com.

Considered today as the leading trading school in the world, Trading Academy.com offers extensive and effective training on the rudiments of day trading in any market conditions. Their courses, classroom and online courses were designed for the novice and the experts, traders and investors alike whose primary goal is to provide the right competencies in trading.

The bottom line here is getting all the information and skills you need to help you in your trading decisions. To hammer the importance of this point, Alan Greenspan spells this to us more accurately:

It has been my experience that competency in mathematics, both in numerical manipulations and in understanding its conceptual foundations, enhances a person's ability to handle the more ambiguous and qualitative relationships that dominate our day-to-day financial decision-making.

Plan

Presumably, you have now the money allocated, and have the basic competencies to start trading, then you need to draft an investment plan that you can refer from all the time. This investment plan will help you organize your investments and keep you on track.

Stock trading is stressful for both the investor and professional trader. As an investor, you need to be a step ahead always. Your plan should include not only how much you are going to invest, buy or sell, but also the rationale and timetable behind those investments. It should also include your exit point (the price that you will sell your investment at to take profits) and the time you want to allocate for your investments each day, which involves monitoring and studying their movements. This plan is your trading blueprint, and it will help you reduce unnecessary errors and run into unnecessary risks.

Again, I am speaking from a layman’s perspective here. There is still no substitute from an expert’s advice, which you should refer to more often.

Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell. ~ Sir John Templeton

Being Frugal | Every Little Bit of Savings Adds Up

noreply@blogger.com (Nor) — Sat, 13 Jun 2009 01:55:00 +0000

Living on a budget and being frugal are important steps to financial freedom, but getting started can be frustrating. When we look at our expenses and see all of those bills we are paying every month, it's easy to throw our hands up in disgust. Sometimes, cost savings initiatives will take the back seat because of this.

But what about all those little expenses we incur? You might be surprised to find out just how much they amount to.

It's easy to dismiss cutting back on little things. A few dollars a month won't make a significant difference in the big picture. But a few dollars here and a few dollars there adds up to a few more dollars. When you cut back in many small ways, you could end up with a lot more money at the end of the month.

Simple Frugal Budgeting Tips for Households: Waste Not, Want Not

One thing we can do that is good for the budget is stop wasting so much. This can apply to many areas in our lives. From eating to home heating, waste equals money going down the drain unnecessarily.

Cooking for the family instead of eating takeout or dining out is a great way to save money. But if you're throwing food out, the benefit is reduced. So if you have leftovers, don't let them end up in the trash. Some dishes freeze well, and this makes for easy dinners when you don't have time to cook. You could also eat dinner leftovers for lunch the following day.

If your home is not well insulated, you're probably wasting lots of money on home heating and cooling. Insulating will cost some money up front, but it will pay for itself quickly. If you have drafts around windows and doors, weatherstripping can help maintain the temperature of your home.

Most households waste an unbelievable amount of electricity. This can be prevented in part by using energy efficient appliances and light bulbs. Turn lights, televisions, computers and other devices off when you're not using them, and open blinds to take advantage of the sun's light during the day.

Practical Frugal Living Habit: Do It Yourself

Any time you pay someone else to do something that you could do yourself, you're spending money unnecessarily. This applies to little things like buying coffee instead of making your own, as well as to larger expenses such as home repairs.

Many of us buy coffee or a soft drink from a convenience store or coffee shop on the way to work in the morning. This can really add up over time. Instead, make your own coffee, or buy soda in 2-liter bottles and pour some into a smaller bottle or cup to take with you. The same applies to lunches. Instead of springing for fast food, take a sandwich or something microwavable to work.

While we're not all good at all types of repairs and maintenance, most of us can do some things for ourselves. Maybe you could change your own oil instead of paying someone else to do it. If the walls need painting, consider getting friends and family to help you do it instead of hiring a painter. Things like these can save us a noticeable amount of money right away.

When you add up these cost savings, little things can make a big difference to effective frugal budgeting. So take a close look at your budget and see what small expenses are lurking there. If you can eliminate or reduce them, it could positively impact your bottom line, and you will worry less on problems with money, better yet worry no more.

What’s your take? Care to share any frugal ideas or practical family saving techniques?

Using Cheap Home Alarm System from ADT Alarms

noreply@blogger.com (Nor) — Fri, 12 Jun 2009 14:11:00 +0000

Safe and security of my family take a very high priority. Home security systems are investments, regardless of economic downturn, that cannot be set aside.

While we can always choose a safer and secure neighborhood, we cannot negate the possibility that burglary or illegal intrusions into our homes can happen anytime. Sometimes, neighborhood of little known incidence burglaries can be likely targets. Hence, home alarm systems in place are always handy.

However, the real issue as far as installing security and alarm devices is affordability and reliability.

Thus far, nothing can closely match the services provided by the largest provider of electronic security services in the nation today than ADT. In fact, even before you consider cost hurting your household budget, the reliability of cheap home alarm system that ADT provides outweighs the investment you will make. With the aid of their Home Security Wizard, which is readily accessible on the internet, you can easily identify your requirements for you home alarm security. Also, you can even get the actual cost requires for the installation of your security alarms and thus can decide objectively on the allocation of budget.

Better safe than sorry, as they say. My two cents? When deciding on this issue, make reliability your foremost consideration, then cost as secondary.

Some thoughts about unsecured personal loans

noreply@blogger.com (Nor) — Thu, 11 Jun 2009 04:49:00 +0000

Some of us can easily justify the recession or our perennial problems with money that we are easily swayed into getting unsecured loans. Who would not?

However, allow me to throw a few concerns or thoughts about getting unsecured personal loans.

Some of my friends seem to have made this a habit whenever they run into money problems. While I do not negate entirely the help that comes from an unsecured personal loan in times needs, this should not become your primary solution. Your money problems will continue to recur if you are dependent to this quick fix solution. In most cases, a change perspective and attitude towards money management can provide a long-term solution.

Credit and Debt Consolidation | Small Step to Financial Freedom

noreply@blogger.com (Nor) — Fri, 15 May 2009 14:37:00 +0000

“Financial freedom is a buzzword for our generation. It is the pursuit of literally millions of people. So what is it? Is it that elusive? Can anyone get it?” ~Chris Widener, a Motivational Guru

Though ‘elusive’, financial freedom is achievable by anyone committed in its pursuit. However, for the wishful thinker and daydreamer, this is nearly impossible to achieve. Because financial freedom does not only require the desire to earn it, but also the will to take the necessary steps, however painful, to achieve it. It begins in the mind, then channeled into a determination to take positive actions towards financial independence. As Dave Ramsey (Total Money Makeover) puts it aptly:

“Winning at money is 80 percent behavior and 20 percent head knowledge. Most of us know what to do, but we just don’t do it.”

One small yet difficult step to take is getting out of debt.

Unpaid bills, credit card debt, and other loans can be financially disastrous if they remain unsettled for a long time. It is very difficult and even discouraging to work just in order to pay for your outstanding debts and their annoying interests. The longer you delay your repayments, the more you incur interest and further ruin your credit standing. Consequently, bills will continue to pile up before you can even start paying the last one. Get out of this rut, as soon as possible.

One practical alternative is debt consolidation. This involves making a onetime loan enough to cover for all your outstanding debts. Debt consolidation loans are usually charge lower interest rates and offer a longer repayment scheme. This is hassle-free on your part because you will have to deal with a single lender. So with all your outstanding debts and loans covered, you can focus your effort on one single loan amortization. This is but a small step, but is one effective step towards financial freedom.
To hammer this point deeper, allow Chris Widener to amplify my point here:

Want financial freedom? The first thing you should do is to get out of debt. That is priority number one. One of the reasons I have financial freedom is that I have no debt other than my house payment. And I work hard to manage myself and our home to keep us that way. For years I drove an old junker car, and while I looked bad, I had financial freedom that others who were in debt didn’t have! There is an old proverb – The borrower is the servant of the lender. Who has freedom? The lender. Who doesn’t? The borrower. Develop a plan to get out of debt!

Obtain and Monitor Your Free Credit Report Regularly

noreply@blogger.com (Nor) — Fri, 15 May 2009 12:09:00 +0000

While there is indeed a need to overhaul a majority of our financial institutions and the credit industry is still struggling to rise back, consumers nevertheless have the responsibility to obtain a copy and monitor their credit report on a regular basis.

Why do we need to monitor our credit report regularly?

First, our credit report states our financial health or status on record. Banks, loan agencies, various government agencies, and your employer can easily obtain a copy of your credit report and use it as a basis for any transaction. Even apartment landlords would even check this report and can make this a basis for accepting or rejecting you as a tenant.

Your credit report, in a sense, bespeaks of your financial credibility.

Second, your credit report is not absolute. Meaning, it could be prone from errors. If you are monitoring it on regularly, you can easily detect these errors and have them rectified immediately. Hence, you will not be surprised, in case of a negative score, if you were denied of a particular loan. More so, in cases of negative score, you will have a basis to work on an improvement of your credit rating.

Lastly, identity theft is commonplace. With more than half of our purchases and other transactions being done online, scrupulous and malicious individuals can easily intercept the data you sent, especially personal information. Thus, in most cases, errors that are reflected in your credit report may be attributed to identity theft.

Federal laws dictate that you have a right to obtain a copy of your credit report once a year free. Not only that, you can always check for a free credit report online. Better safe than sorry, as they say. So, check your credit report regularly.

Unsecured Loans in Desperate Times

noreply@blogger.com (Nor) — Fri, 15 May 2009 09:30:00 +0000

“Desperate people, do desperate things.”

Have you heard that popular maxim? I am sure that most of you were caught in the same predicament, many times before or perhaps you are in one right now. Desperate times can force us to take desperate measures, especially during emergencies and calamities. These are the times where that extra money saved counts. Unfortunately, for some of us, we have not set aside that kind of money.

So, where do we turn to for help or immediate relief?

In a recession like this, most of our friends and relatives may also be suffering the same fate. So, where do we turn to when you exceeded already your card’s credit limit, and your savings account has already dried-up?

Unsecured personal loans from a refutable lending company can be your bailout. Although, in some cases, interest rates may be higher compared to other type of loans. Nevertheless, unsecured loans when carefully chosen among other offers will surely help. These can be availed immediately and without so much paperwork if you qualify.

But again, in my simple mind, you do not have to resort into more borrowing if you have carefully planned and managed your finances. I think, that’s the bottom line. Crisis or not, those who are prepared will not be shaken.

Personal Finance Management Basic | Getting the Right Information and Acting on it

noreply@blogger.com (Nor) — Fri, 01 May 2009 19:35:00 +0000

"If you know how to spend less than you get, you have the philosopher's stone" - Benjamin Franklin

The trouble with most of us, who are struggling with our finances, is that, we know how to manage our finances, but we simply don’t. We know that spending less than what we earn is the right thing to do, but we live to ignore it. We are always satisfied with gratifying our desires when we spend more for things of no value and suffer the consequences later. To me, this seems like a self-inflicted money crisis.

We struggle through life trying to find answers to our financial dilemma, when in truth; those answers are just staring at you, waiting to be tapped.

For example, we know how important it is to set aside a portion of your income for emergency or health funds; that insurance premiums are actually investments for future needs; that there are many things that can wait like those we crave so much; that getting a mortgage more than what you can actually afford after based on your net pay (in this context, including all your personal obligations except the mortgage payment; etc. We seem to care less.

We no longer need raising financial management questions and answers shove on our face. What we need is to act on that information. There are literally thousands of finance management “how-to’s” articles, wikis, blogs, ebooks, and websites over the net; and you can even find a good article on an online dictionary or encyclopedia. But what we do on the information we get is actually what matters most.

As I have said, we do not need a new gospel on personal finance management, what we need is walking the talk, so to speak.

Is Debt Consolidation a Good Idea? Can it free you from Bad Loans?

noreply@blogger.com (Nor) — Tue, 28 Apr 2009 02:47:00 +0000

I read this funny quote on a magazine and wrote it down on the front page of my planner:

A bank is a place where they lend you an umbrella in fair weather and ask for it back when it begins to rain.

Funny. But, ironically true. Loans can help us in our dire needs and more often, in acquiring what we so desire. However, during payback times, we sometimes find ourselves in sticky situations where we regret taking those loans. Okay, do not take me wrong on this. I am in no way against loans, as long as you are able to pay and you use them for good intents and purposes.

The danger is, getting loans can become a bad habit and will wreak havoc on your finances and your whole life. Usually this happens little by little. It begins with unnecessary purchases using your credit cards, then followed by an ‘untimely’ purchase of a new car via a car loan or through a lending company, or borrowing money for a extravagant celebrations, and more. Then you wake up in the morning to find your mail boxes filled with demand letters.

Here’s how you should deal with that sticky situation: Get out of it!

Easier said than done. But you can get out of that pesky situation. It is doable.
For one, you might want to try debt consolidation for your larger loans and those bills that endlessly badger every end of the month. By consolidating these things, you can better manage your debts. So that, rather than paying off several separate bills each month, you loan from one among legitimate debt management companies who will arrange a low-interest and flexible repayments for you. Yeah, that can be arranged. Now, I see the sign of relief in your eyes. Debt consolidation is a good idea for freeing yourself from bad loans and other debts. Also, the key here is finding the right finance counselor or debt management expert to help you.

What’s next? Break the habit! Be contented with what you have. Save for the rainy days, and spend only on your needs and let that 54-inch take the back seat for awhile –that is, do not spend on wants unless you have money to spare. Lastly, educate yourself. You might want to peruse more info on debt collection basics and how to improve your credit score.

“Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it makes one.”~Benjamin Franklin

Credit Cards for Bad Credit | Are we just trying to make things worse in our personal finances?

noreply@blogger.com (Nor) — Sun, 12 Apr 2009 07:52:00 +0000

I do not want to sound pessimistic here, but it seems there are no clear signs as to where our economy is going. While politicians continue to debate on which more appropriate course to take, many of us are tripling out efforts to make both ends meet.

To me, although the government and some of the biggest financial institutions are to be blame on the current financial predicament we are all in, we are (on the individual level) to be blamed mostly from our financial woes.

The root could be traced with bad credit loans, and then followed by undisciplined use of the credit cards. I am not entirely against these plastics, but rather on the inappropriate use thereof.

We love convenience, luxury, and things that we do not actually need. In fact, it all begun there. Bad credit loans, unpaid bills, unmanageable mortgages, and bad credits are but results of satisfying our appetites for the good stuff that we cannot actually afford.

Then when we have almost completely mess-up our finances, we get another a lifeline via credit cards for bad credits? Are we just trying to make worse?

However, I must admit (and before I am accused of pontificating here) that in a recession like this, bad credit credit cards can somehow serve their good purpose, at least temporarily. What I mean with good purpose is, paying for obligations that may not otherwise be met by our current income. With a bad economy coupled by your own bad credit history, these type of credit cards are sure haven of rest.

Nevertheless, this time (or should we have exercised the same in this first place when we got our first plastic?) caution and prudence must be strictly observed. The key here is taking the time to compare interest rates, APR (Annual Percentage Rate), Cash Advance Features, miscellaneous fees (such as application, late payment charges, annual fees, foreign transactions, etc.), Rewards and Bonuses. In this case, you might want to check out the credit cards comparison that BadCreditOffers.com publishes.

Common sense dictates that you cannot solve a problem by creating another problem. Vis a vis, you cannot repair a bad credit history, or your growing debts by getting more bad loans and/or wanton credit card usages. Discipline is not an option, but a must these days if one wants to survive, better yet, thrive in this crisis.

No Medical Exam Life Insurance | Would you still invest on life insurance policies?

noreply@blogger.com (Nor) — Sat, 28 Mar 2009 02:58:00 +0000

After the financial meltdown of AIG, considered as one of America’s oldest, biggest, and most stable (or at least, we have all led to believe) insurance companies, would you still consider purchasing a term life insurance policy? Or, even trust your future with a ‘no medical life insurance’?

I have always believed that any type of insurance policy purchases is actually an investment in the future. Oh, I still believe it is.

While many of us would place insurance premium payments at the expense column of our personal finance books, I chose instead to have mine under the investment column. In fact, in spite of the current state of the economy and the financial topsy-turvy at Wall Street (forgive my pessimism and sarcasm there) I still trust my insurance company and the coverage it guaranteed in my policy. Premium payments for my health and term life insurance are on the top of my priority list. Are you doing the same?

Any type of insurance is to be regarded as an investment for the future, especially for unforeseen events such as illnesses, accidents, and/or even death. We owe it to ourselves, and to our families. Thus, setting aside a portion of our income on insurance payment premiums should not be disregarded or neglected.

These days, many insurance companies have decided to lower their premium rates and increase the value of their policies.

Uh, AIG? The bonuses? I know. But in my mind, this should not prevent us from trusting other insurers. Would you?

Moving on, would you consider purchasing a ‘no medical exam life insurance' policy? It is a lot cheaper, they say, than regular life insurance policies that require strict medical examination.

However, in my mind, isn’t it the primary reason why you need to undergo this medical examination is to determine how much premium you are going to pay and the extent of the coverage? Meaning, if the results indicate that you will likely live longer or stay healthy throughout your adult life , you will pay cheaper premiums. Conversely, if the results show that you have signs of early ETD, then you be charged higher.

Here is my take, simplistic as it sounds: To me, regardless of the medical tests results, whether it is a no medical life insurance policy or not, I will not hesitate to purchase one for myself and for my love ones. Purchases today will always be cheaper than tomorrow’s.

This is just my two cents. What is yours?