Ask a friend what resolutions they made for the new year and your bound to hear them reply “Pay off my credit cards.” Ask them how they planned on reaching that goal and many of them will not have a clear cut answer.
The obvious first step to paying off credit card debt or paying down credit debt load is to cut back or eliminate the use of your credit cards. For some people this first step can often be the most difficult. If you’re used to spending freely with plastic and worrying about the consequences later, it’s difficult to break free from this “buy now, pay later” attitude.
To gain control of their careless credit card spending habits, some people cut up their credit cards therefore making it impossible to use them. Others lock up their credit cards or hide them in a safe place and vow to use them only in an emergency.
The second step to paying down credit debt is to pay more than the minimum balance due. Most credit card companies require a minimum monthly payment of 2.5% of the outstanding balance. For example, if you have an outstanding balance of $1100.00 on a credit card charging an Annual Percentage Rate (APR) of 18.9% your minimum monthly payment would be $27.50. It will take you 66 months or 5.5 years to pay off your balance of $1100.00 making the minimum payments. The credit card company will make $676.94 in interest from your use of their credit card.
Monthly payments are purposely kept low by the credit card companies so that they can earn as much as possible from the interest rate charged to you the consumer. Paying just the minimum payment will keep you tangled in credit’s web for years and years to come.
If you’ve been paying only the minimum due month after month, ask yourself this question, “Do I have an extra $10.00 I could apply to this month’s payment?” I’m sure that most of us could find some way to come up with an extra $10.00 for the month. Try cutting out a few cups of coffee or lunches at your nearby fast food outlets and in no time flat you’ll have saved up the extra money that you need.
Now, it’s time to unveil “The Simple $10.00 Debt Elimination Solution.” Take that extra $10.00 and add it to the minimum monthly payment above, therefore making a payment of $37.50. By adding just that $10.00 a month to your minimum payment, you’ll trim 23 months or nearly two years off of that credit debt! On top of that you’ll save $277.00 in interest alone! That’s money you can put toward savings or paying off other debts. Imagine how much you’d be able to save if you applied this same simple strategy to each of your other credit card debts!
Paying down credit debt doesn’t always mean having to make huge monthly payments or sacrifices. It just takes some basic planning and a simple effective strategy to make it work.
Tuesday, December 30, 2008
Saturday, December 20, 2008
The Four Mandatory Buckets Of Personal Finance
I have already written about the financial necessity of saving a portion of any income payment that you receive. This means that a percentage of every single source of income is set aside, marked, or tracked as money that you cannot spend. This task isn’t optional if you want to have some basic financial stability or start growing some serious wealth. Saving is the first step and it is the easiest, simplest, but the most emotionally difficult step. I know that starting to save money is emotionally painful because spending money is easy and pleasurable, while saving money feels difficult and challenging. But like any behavior, it becomes easier and natural the more you do it.
As a review, the billionaire John Templeton started out working during the Great Depression but he saved 50% of his income. This guy was serious! OK, you may have a lot of fixed expenses that you just can’t cancel immediately, but at least enroll in financial nursery school by saving 1% from all the income that you receive. Or start with only $3 a month and then ratchet up your savings rate continually until you are at least over 10%; or if you are ambitious get it over 30%. (If you are trying to find the loophole, this savings is your after-tax income that you can spend – don’t count your 401K or medical savings accounts or any other qualified money that you don’t have full/immediate access to spending).
The remainder of this article is about what to do with that savings. Economics is the study of allocating scarce resources. Personal economics are similar, but I think that it is better described as: The allocation of your income that you can’t spend. If you don’t spend this money, and maybe have it setting aside in savings account, what do you do with it? Do you pay down on a credit card, save it for a car, donate it to a worthy cause, or purchase a bank certificate of deposit? How do you go about deciding?
Well, I have given this some thought and have reached a few conclusions. It is my view that your monthly savings needs to be divided among four mandatory categories. By this, I mean that among the zillions of things you can do with savings, it is my view that four of them are absolutely mandatory. For example, if you earn a paycheck (and after all of the taxing authorities take their share) of $1,000 that you can deposit into your checking account and you’ve chosen a personal savings percentage rate of 8%, then you move $80 ($1,000 X .08) into a separate savings account. Now, you will take this $80 and divide it up into at least the four mandatory categories I am going to discuss, along with any other categories that you value. In this way you’ll have the whole $80 assigned to specific financial duties to meet your financial goals.
Here are the four categories in priority order:
1. The Vault – this is your wealth account. Money gets deposited into this account and it never leaves, like a one-way valve. The Vault is invested and the principal is never spent. It will grow into the largest part of your net worth, generating nearly all of your investment income. If you don’t start creating wealth penny-by-penny, you’ll never have any.
2. Soft Savings – a delayed spending account. This money is marked for things that you want to buy, but can’t afford to purchase with normal pocket money. For example, a house, car, boat, vacation, college fund for kids, planned medical care, clothing, jewelry, etc. But this also includes maintenance to your home, like a roof, new appliances, new siding, paint, landscaping, remodeling, etc.
3. Paydown Debt Balances – making extra principal payments on your credit cards, car loans, and your mortgage. By chipping away at these expenses you will eventually eliminate them all, and then have more money available for other categories. Personal debt is the opposite of financial freedom and dramatically makes it more difficult to reach your financial goals. If you doubt this, look at the interest charges you pay each month and imagine if that money had been invested instead.
4. Financial Education – books, magazines, newsletters, seminars, software, investment memberships. Also, hiring professional financial advisors, tax accountants, estate attorneys, etc. (Avoid free advice a buddy, your cousin, or a friend’s neighbor – buy the best, most expensive professional advice you can afford).
As I mentioned before, you can put your savings into places that are only limited by your creativity. But it is my view that these four areas are so important that they need to be continually fed money in a systematic manner.
If you are missing the first account, The Vault, you’ll never have the money to start investing so you’ll never receive any investment income. This is pretty much the goal of all personal finance, to help you generate the most investment income. That is why this is the most important of the four categories, to get your money earning money so that you don’t have to. (I do not consider any retirement accounts or qualified accounts to be Vault money. This is because you do not have direct control to invest the money or receive any investment income until the government decides that you can).
If you are missing the second account, Soft Savings, you either can’t buy what you want, or you have to increase your personal debt. This is moving in the opposite direction of financial freedom – you are reducing the amount of money that you can spend each month by the amount of the debt payment, and you are reducing your net worth by the principal and interest that you’ll be charged. Another symptom of a lack of Soft Savings is disrepair to your car, home, and health because you don’t have the money for upkeep. Everything physical needs to be maintained, from your teeth to your vacuum, and it costs money to do so. This depreciates the financial assets that you own, and puts at risk the most important quality of life – your health.
If you are missing the third account, Paydown Debt Balances, you are simply going to be the patsy in the financial game of life. People that are building their wealth collect lots of little interest payments from the people that are destroying their wealth by making lots of little interest payments – money is transferred every month from one group of people to the other. Which group do you want to be in? Well, your Vault can automatically put you into the group of wealth-builders and your Paydown Debt account starts to extract you from the group of wealth-destroyers. The Paydown Debt account puts you on track to permanently extinguish all of your personal debt. The sooner a personal debt is paid off, the more rapidly you can take all of this money and put it into the other categories.
If you are missing the fourth account, Financial Education, you won’t know how to captain your Vault, and you may run it straight into the rocks. Only you will manage your money in a manner that will be to your maximum benefit. So it is best if you pay to learn how to handle money and learn where to put it. But not everyone has an interest in these subjects, and that is fine. For them, instead of personally managing your money, you are going to personally manage your financial advisors. You’ll be spending money and time to hire and manage the advisors to attend to financial details.
By allocating your savings into these four categories you are addressing the four most important elements of financial management. You’ll be making certain that: Your investment income will always increase by adding to your Vault; you’ll have money available for extra expenses with your Soft Savings; your net worth will always be increasing with a Paydown Debt account; and you’ll intelligently learn how to lower your investment risk, raise your investment returns, and lower your tax liability with your Financial Education account. The only source of money to build these critical financial functions to increase your income, net worth, and stability is your savings – you simply have to do it.
I recommend you fund these accounts simultaneously – do not focus only on debt or only on education because I have seen how it is financially detrimental to do so. For example, let’s say that you really want to paydown your debt so you don’t contribute anything to The Vault. I have found that if you don’t have any investments, your investing skills will be under developed. You will not know how to invest once your debts have been paid off, you’ll have no investment income to manage, you won’t be looking for investing opportunities because that is something you can’t afford right now, etc. And as a result, it will be harder to get into the investing game later, you’ll have more to learn in a shorter amount of time, and may just avoid it altogether and put Vault money into a low paying account.
How much do you allocate among the four categories? Anything more that zero! It is up to you, and your financial situation will fluctuate and be different from others. Just to get some starting percentages, below is my allocation. It is not a recommendation for anyone, it is just what works for me right now.
My current savings rate = 20% of all after-tax income.
(This does not include 401K, medical savings accounts, or other deferred/qualified withholding). This means that 20% of all cash income that hits my checking account each month is set aside into these categories:
1. The Vault receives 50% of total savings each month.
2. Soft Savings receives 20% of savings each month.
3. Paydown Debt receives 20% of savings each month.
4. Financial Education receives 5% of savings each month.
5. And that leaves 5% for other categories each month.
You may receive continual, ongoing income, in addition to some rare, one-time inflows of money. The percentages detailed above are how I allocate regular income savings. But if there is any one-time inflow of money (garage sale, bonus, extra project), then I take 90% of the proceeds and split it among the four accounts, and the other 10% is just spent. You can create your own money rules for different types of income; you can tell by my allocation percentages that my primary focus is to build up the balance of the Vault.
The amount of money that you can save from every source of income is your key to a brighter financial future. Contrarily, a risky and dimmer financial future awaits those that refuse to systematically save money. So be sure that you take the steps necessary to set savings aside and then simultaneously divide it among the four mandatory accounts by consistently allocating money to them. You don’t have a financial foundation without these four accounts, but with them, you can build as high as your ambition takes you.
As a review, the billionaire John Templeton started out working during the Great Depression but he saved 50% of his income. This guy was serious! OK, you may have a lot of fixed expenses that you just can’t cancel immediately, but at least enroll in financial nursery school by saving 1% from all the income that you receive. Or start with only $3 a month and then ratchet up your savings rate continually until you are at least over 10%; or if you are ambitious get it over 30%. (If you are trying to find the loophole, this savings is your after-tax income that you can spend – don’t count your 401K or medical savings accounts or any other qualified money that you don’t have full/immediate access to spending).
The remainder of this article is about what to do with that savings. Economics is the study of allocating scarce resources. Personal economics are similar, but I think that it is better described as: The allocation of your income that you can’t spend. If you don’t spend this money, and maybe have it setting aside in savings account, what do you do with it? Do you pay down on a credit card, save it for a car, donate it to a worthy cause, or purchase a bank certificate of deposit? How do you go about deciding?
Well, I have given this some thought and have reached a few conclusions. It is my view that your monthly savings needs to be divided among four mandatory categories. By this, I mean that among the zillions of things you can do with savings, it is my view that four of them are absolutely mandatory. For example, if you earn a paycheck (and after all of the taxing authorities take their share) of $1,000 that you can deposit into your checking account and you’ve chosen a personal savings percentage rate of 8%, then you move $80 ($1,000 X .08) into a separate savings account. Now, you will take this $80 and divide it up into at least the four mandatory categories I am going to discuss, along with any other categories that you value. In this way you’ll have the whole $80 assigned to specific financial duties to meet your financial goals.
Here are the four categories in priority order:
1. The Vault – this is your wealth account. Money gets deposited into this account and it never leaves, like a one-way valve. The Vault is invested and the principal is never spent. It will grow into the largest part of your net worth, generating nearly all of your investment income. If you don’t start creating wealth penny-by-penny, you’ll never have any.
2. Soft Savings – a delayed spending account. This money is marked for things that you want to buy, but can’t afford to purchase with normal pocket money. For example, a house, car, boat, vacation, college fund for kids, planned medical care, clothing, jewelry, etc. But this also includes maintenance to your home, like a roof, new appliances, new siding, paint, landscaping, remodeling, etc.
3. Paydown Debt Balances – making extra principal payments on your credit cards, car loans, and your mortgage. By chipping away at these expenses you will eventually eliminate them all, and then have more money available for other categories. Personal debt is the opposite of financial freedom and dramatically makes it more difficult to reach your financial goals. If you doubt this, look at the interest charges you pay each month and imagine if that money had been invested instead.
4. Financial Education – books, magazines, newsletters, seminars, software, investment memberships. Also, hiring professional financial advisors, tax accountants, estate attorneys, etc. (Avoid free advice a buddy, your cousin, or a friend’s neighbor – buy the best, most expensive professional advice you can afford).
As I mentioned before, you can put your savings into places that are only limited by your creativity. But it is my view that these four areas are so important that they need to be continually fed money in a systematic manner.
If you are missing the first account, The Vault, you’ll never have the money to start investing so you’ll never receive any investment income. This is pretty much the goal of all personal finance, to help you generate the most investment income. That is why this is the most important of the four categories, to get your money earning money so that you don’t have to. (I do not consider any retirement accounts or qualified accounts to be Vault money. This is because you do not have direct control to invest the money or receive any investment income until the government decides that you can).
If you are missing the second account, Soft Savings, you either can’t buy what you want, or you have to increase your personal debt. This is moving in the opposite direction of financial freedom – you are reducing the amount of money that you can spend each month by the amount of the debt payment, and you are reducing your net worth by the principal and interest that you’ll be charged. Another symptom of a lack of Soft Savings is disrepair to your car, home, and health because you don’t have the money for upkeep. Everything physical needs to be maintained, from your teeth to your vacuum, and it costs money to do so. This depreciates the financial assets that you own, and puts at risk the most important quality of life – your health.
If you are missing the third account, Paydown Debt Balances, you are simply going to be the patsy in the financial game of life. People that are building their wealth collect lots of little interest payments from the people that are destroying their wealth by making lots of little interest payments – money is transferred every month from one group of people to the other. Which group do you want to be in? Well, your Vault can automatically put you into the group of wealth-builders and your Paydown Debt account starts to extract you from the group of wealth-destroyers. The Paydown Debt account puts you on track to permanently extinguish all of your personal debt. The sooner a personal debt is paid off, the more rapidly you can take all of this money and put it into the other categories.
If you are missing the fourth account, Financial Education, you won’t know how to captain your Vault, and you may run it straight into the rocks. Only you will manage your money in a manner that will be to your maximum benefit. So it is best if you pay to learn how to handle money and learn where to put it. But not everyone has an interest in these subjects, and that is fine. For them, instead of personally managing your money, you are going to personally manage your financial advisors. You’ll be spending money and time to hire and manage the advisors to attend to financial details.
By allocating your savings into these four categories you are addressing the four most important elements of financial management. You’ll be making certain that: Your investment income will always increase by adding to your Vault; you’ll have money available for extra expenses with your Soft Savings; your net worth will always be increasing with a Paydown Debt account; and you’ll intelligently learn how to lower your investment risk, raise your investment returns, and lower your tax liability with your Financial Education account. The only source of money to build these critical financial functions to increase your income, net worth, and stability is your savings – you simply have to do it.
I recommend you fund these accounts simultaneously – do not focus only on debt or only on education because I have seen how it is financially detrimental to do so. For example, let’s say that you really want to paydown your debt so you don’t contribute anything to The Vault. I have found that if you don’t have any investments, your investing skills will be under developed. You will not know how to invest once your debts have been paid off, you’ll have no investment income to manage, you won’t be looking for investing opportunities because that is something you can’t afford right now, etc. And as a result, it will be harder to get into the investing game later, you’ll have more to learn in a shorter amount of time, and may just avoid it altogether and put Vault money into a low paying account.
How much do you allocate among the four categories? Anything more that zero! It is up to you, and your financial situation will fluctuate and be different from others. Just to get some starting percentages, below is my allocation. It is not a recommendation for anyone, it is just what works for me right now.
My current savings rate = 20% of all after-tax income.
(This does not include 401K, medical savings accounts, or other deferred/qualified withholding). This means that 20% of all cash income that hits my checking account each month is set aside into these categories:
1. The Vault receives 50% of total savings each month.
2. Soft Savings receives 20% of savings each month.
3. Paydown Debt receives 20% of savings each month.
4. Financial Education receives 5% of savings each month.
5. And that leaves 5% for other categories each month.
You may receive continual, ongoing income, in addition to some rare, one-time inflows of money. The percentages detailed above are how I allocate regular income savings. But if there is any one-time inflow of money (garage sale, bonus, extra project), then I take 90% of the proceeds and split it among the four accounts, and the other 10% is just spent. You can create your own money rules for different types of income; you can tell by my allocation percentages that my primary focus is to build up the balance of the Vault.
The amount of money that you can save from every source of income is your key to a brighter financial future. Contrarily, a risky and dimmer financial future awaits those that refuse to systematically save money. So be sure that you take the steps necessary to set savings aside and then simultaneously divide it among the four mandatory accounts by consistently allocating money to them. You don’t have a financial foundation without these four accounts, but with them, you can build as high as your ambition takes you.
Sunday, December 14, 2008
The Threshold between Wealth Creation & Destruction
Wealth is simply the accumulation of money, and it can only be created by the amount of money that is received and never spent. If you want to build wealth, then anytime you receive money: don’t spend all of it. Sure it is a very simple concept, but it is very difficult to continually achieve. Luckily there are readily available allies to help you: find some compelling reasons to start saving, build it into a habit, watch the results of your efforts build, and set some financial milestones to reward yourself.
Setting aside a percentage of any money that you receive is the best method to follow through and build the habit of saving money. There are a few misers among us who find saving easy to do, but most people want to spend far more than is earned; let alone have the discipline of spending less than what they earn. So it starts as an uphill mental and emotional battle that gets easier by following through with the habit, and seeing the results of your effort. Spending less than what you earn every week, every month, every year, is the only way to amass money.
How much money should you set aside to build up savings? It should be a percentage so that you automatically move it into a separate savings account anytime you receive income, without exception. It is my experience that the range of 3% to 10% is the most successful starting percentage for people who continue saving over long periods of time. Saving only 3% is so small that it is nearly painless to even the lowest income earners (this is actually where I began years ago). Selecting a percentage under 3% accumulates to such a tiny amount of savings that I haven’t heard of anyone sticking with it. And starting out by setting aside over 10% is too painful for even high income earners to withstand, because they are so accustomed to spending on every whim. As you repeatedly save a set percentage rate, it will become more habitual, automatic and expected. Then you’ll be ready to increase your percentage rate. And the higher the savings rate, your growing pile of money will create more motivation to continue to save. This summer, I spoke with a successful saver who lives very well on only 30% of his income. Because he saved diligently to continually buy rental homes, after a couple decades he earns over a million a year in rental income by Ashville, North Carolina.
In the fragile first years of saving money, it can take only a single wrong financial move to wipe out everything that you’ve saved so far. And the most common wrong move doesn’t look like it when it is occurring. This draining move can also start insidiously small and build a different habit, the wealth-destruction habit. You know the problem: pay your credit card balance in its entirety, every month, without exception. As an example, if you haven’t saved money for a vacation before you depart, and then charge it all to your credit card, there is a giant probability that you won’t pay it off for a very long time. The credit card companies know this and they are extracting interest dollars from you instead of earning interest yourself. You’ve shifted to the dark side of wealth destruction where it is more common for your credit card balance to grow than shrink.
Let’s get back to building your wealth. Once you start setting aside the savings percentage that you’ve decided and opened a dedicated savings account, you need to closely review your account statements for motivation. Reviewing the progress that you’ve made so far you’ll see how you are moving toward financial goals can be self-reinforcing. And another motivator is rewarding yourself by spending some money on yourself when you’ve reached certain milestones. For example, you could start with a goal of accruing $500, and reward yourself with something meaningful; and then each time you double your amount of savings you get another reward. My advice is to at least begin with a savings percentage, even as small as my 3%, and allow this simple concept be of great financial benefit to you.
Setting aside a percentage of any money that you receive is the best method to follow through and build the habit of saving money. There are a few misers among us who find saving easy to do, but most people want to spend far more than is earned; let alone have the discipline of spending less than what they earn. So it starts as an uphill mental and emotional battle that gets easier by following through with the habit, and seeing the results of your effort. Spending less than what you earn every week, every month, every year, is the only way to amass money.
How much money should you set aside to build up savings? It should be a percentage so that you automatically move it into a separate savings account anytime you receive income, without exception. It is my experience that the range of 3% to 10% is the most successful starting percentage for people who continue saving over long periods of time. Saving only 3% is so small that it is nearly painless to even the lowest income earners (this is actually where I began years ago). Selecting a percentage under 3% accumulates to such a tiny amount of savings that I haven’t heard of anyone sticking with it. And starting out by setting aside over 10% is too painful for even high income earners to withstand, because they are so accustomed to spending on every whim. As you repeatedly save a set percentage rate, it will become more habitual, automatic and expected. Then you’ll be ready to increase your percentage rate. And the higher the savings rate, your growing pile of money will create more motivation to continue to save. This summer, I spoke with a successful saver who lives very well on only 30% of his income. Because he saved diligently to continually buy rental homes, after a couple decades he earns over a million a year in rental income by Ashville, North Carolina.
In the fragile first years of saving money, it can take only a single wrong financial move to wipe out everything that you’ve saved so far. And the most common wrong move doesn’t look like it when it is occurring. This draining move can also start insidiously small and build a different habit, the wealth-destruction habit. You know the problem: pay your credit card balance in its entirety, every month, without exception. As an example, if you haven’t saved money for a vacation before you depart, and then charge it all to your credit card, there is a giant probability that you won’t pay it off for a very long time. The credit card companies know this and they are extracting interest dollars from you instead of earning interest yourself. You’ve shifted to the dark side of wealth destruction where it is more common for your credit card balance to grow than shrink.
Let’s get back to building your wealth. Once you start setting aside the savings percentage that you’ve decided and opened a dedicated savings account, you need to closely review your account statements for motivation. Reviewing the progress that you’ve made so far you’ll see how you are moving toward financial goals can be self-reinforcing. And another motivator is rewarding yourself by spending some money on yourself when you’ve reached certain milestones. For example, you could start with a goal of accruing $500, and reward yourself with something meaningful; and then each time you double your amount of savings you get another reward. My advice is to at least begin with a savings percentage, even as small as my 3%, and allow this simple concept be of great financial benefit to you.
How To Get Rich Today
Want to know how to get rich today? You could try the lottery, or try your luck at the roulette wheel. Of course, you know the odds are against you, right? Want a better way?
Start thinking about what it means to BE rich. Consider that you are sitting there with a fantastic machine in front of you - the computer. It can entertain you, educate you, employ you and more. Think back two hundred years ago, when the richest people in the world didn't have access to a computer, or a television, or a car, or a refrigerator, flush toilets or modern medicines.
Think about how many millions of people TODAY would eagerly trade places with you. If you consider yourself poor, there are others who would consider you rich by comparison, right? "Rich" is relative, isn't it? While others imagine how much better their lives would be if they had as much as you, you imagine a life made better by even more wealth.
It's certainly true that life can be improved by money. Those who tell you differently are lying or have a real lack of imagination. However, long before you get rich according to whatever standard or goal you have, you can get rich by living differently. You can learn how to get rich by enjoying the real wealth you already have. If you don't learn how to enjoy life first, you may not enjoy future wealth in any case.
Who is really richer, a person with a lot of money and things who is alternately stressed and bored, or a person who is enjoying all the good things he has, however few they may be? Appreciate what you have, and you WILL be richer. Of course you should plan for the future, to make more money, but get rich today by living in a state of gratitude for what you already have.
How To Get Rich Today - Part Two
Isn't money a blessing, as well as an incredible and fascinating invention? It's the distilled essence of all the worldly things and situations you might want or need. Why not make more of it? The following are some simple reminders of things you already know about how to get rich.
1. Plan to make more money. Choose a way (there are many) and work it. Try another if you fail, but don't stop trying. Fast or slow - you can get rich. However, don't just think about getting rich. Put your goals in writing, and take the steps necessary.
2. Decide what is truly important to you. I have seen more than one person spend what could have been a wealth-building investment on things that really weren't important to them. Self control doesn't have to mean self-denial, but it should mean doing what you REALLY want for the long term.
3. Learn to manage money. If you watch those "Where Are They Now" programs, you'll quickly see that it's easier to lose millions than to make them. How many famous people have blown through all their money in a few shot years? About 1,897. Okay, who knows, but the lesson is clear. You need to understand how to manage money if you want to get rich and stay rich. Why not start educating yourself?
Enjoy what you have, and put a plan in place to get more - this is how to get rich today.
Start thinking about what it means to BE rich. Consider that you are sitting there with a fantastic machine in front of you - the computer. It can entertain you, educate you, employ you and more. Think back two hundred years ago, when the richest people in the world didn't have access to a computer, or a television, or a car, or a refrigerator, flush toilets or modern medicines.
Think about how many millions of people TODAY would eagerly trade places with you. If you consider yourself poor, there are others who would consider you rich by comparison, right? "Rich" is relative, isn't it? While others imagine how much better their lives would be if they had as much as you, you imagine a life made better by even more wealth.
It's certainly true that life can be improved by money. Those who tell you differently are lying or have a real lack of imagination. However, long before you get rich according to whatever standard or goal you have, you can get rich by living differently. You can learn how to get rich by enjoying the real wealth you already have. If you don't learn how to enjoy life first, you may not enjoy future wealth in any case.
Who is really richer, a person with a lot of money and things who is alternately stressed and bored, or a person who is enjoying all the good things he has, however few they may be? Appreciate what you have, and you WILL be richer. Of course you should plan for the future, to make more money, but get rich today by living in a state of gratitude for what you already have.
How To Get Rich Today - Part Two
Isn't money a blessing, as well as an incredible and fascinating invention? It's the distilled essence of all the worldly things and situations you might want or need. Why not make more of it? The following are some simple reminders of things you already know about how to get rich.
1. Plan to make more money. Choose a way (there are many) and work it. Try another if you fail, but don't stop trying. Fast or slow - you can get rich. However, don't just think about getting rich. Put your goals in writing, and take the steps necessary.
2. Decide what is truly important to you. I have seen more than one person spend what could have been a wealth-building investment on things that really weren't important to them. Self control doesn't have to mean self-denial, but it should mean doing what you REALLY want for the long term.
3. Learn to manage money. If you watch those "Where Are They Now" programs, you'll quickly see that it's easier to lose millions than to make them. How many famous people have blown through all their money in a few shot years? About 1,897. Okay, who knows, but the lesson is clear. You need to understand how to manage money if you want to get rich and stay rich. Why not start educating yourself?
Enjoy what you have, and put a plan in place to get more - this is how to get rich today.
Monday, December 8, 2008
Tips to Consider Before Buying an Annuity Policy
Annuities may be a useful tool for those who want a steady stream of income throughout their lives. While most annuities include a death benefit, an annuity is almost the opposite of a life insurance policy - annuities offer financial protection against outliving your income.
Buying an annuity can be a complicated decision. Following are a few key considerations for buyers before deciding whether to purchase annuity policies:
* Review all of your other savings plans, pensions or retirement funds to determine whether you need an annuity and whether the annuity you are considering is the right one for you based on your age, financial status, investment objective and risk tolerance. Is there a possibility that you could outlive your assets? Will you keep the annuity long enough so that the charges do not eat up your investment?
* Determine whether you want your investment to be steady and fixed or variable. While variable products offer an opportunity to capitalize on market highs, they also carry additional risk in a downturn.
* Be careful about exchanging one variable product for another. For instance, exchanging a variable annuity for a fixed or equity-indexed product may result in a "surrender charge" and higher annual fees, along with a new period of time during which you cannot withdraw money from your account without substantial surrender charges. Always check the schedule of surrender charges and other fees. They may be higher on the variable annuity with the bonus credit than they were on the annuity you already own.
* Make certain the company from which you are considering buying an annuity product is reputable. A good place to start is to look for the Insurance Marketplace Standards Association logo. Only companies that have proven through extensive outside review that they adhere to IMSA's stringent Principles and Code of Ethical Market Conduct can display this logo. Visit www.IMSAethics.org to see if the company is listed and for other information.
* Be sure the company offering the annuity product is financially strong. Many independent services rate the financial strength of insurance companies, such as Standard & Poor's Insurance Rating Services (www.standardandpoors.com), Moody's Investor Services Inc. (www.moodys.com), Fitch Ratings Inc. (www.fitchratings.com) and A.M. Best Co. (www.ambest.com).
* Check with your state's insurance department to be sure the company you're considering buying from is licensed to do business in your state.
* Remember, an annuity is a legally binding document. Read the annuity contract carefully and be sure your agent has answered your questions thoroughly before you buy. - NU
Buying an annuity can be a complicated decision. Following are a few key considerations for buyers before deciding whether to purchase annuity policies:
* Review all of your other savings plans, pensions or retirement funds to determine whether you need an annuity and whether the annuity you are considering is the right one for you based on your age, financial status, investment objective and risk tolerance. Is there a possibility that you could outlive your assets? Will you keep the annuity long enough so that the charges do not eat up your investment?
* Determine whether you want your investment to be steady and fixed or variable. While variable products offer an opportunity to capitalize on market highs, they also carry additional risk in a downturn.
* Be careful about exchanging one variable product for another. For instance, exchanging a variable annuity for a fixed or equity-indexed product may result in a "surrender charge" and higher annual fees, along with a new period of time during which you cannot withdraw money from your account without substantial surrender charges. Always check the schedule of surrender charges and other fees. They may be higher on the variable annuity with the bonus credit than they were on the annuity you already own.
* Make certain the company from which you are considering buying an annuity product is reputable. A good place to start is to look for the Insurance Marketplace Standards Association logo. Only companies that have proven through extensive outside review that they adhere to IMSA's stringent Principles and Code of Ethical Market Conduct can display this logo. Visit www.IMSAethics.org to see if the company is listed and for other information.
* Be sure the company offering the annuity product is financially strong. Many independent services rate the financial strength of insurance companies, such as Standard & Poor's Insurance Rating Services (www.standardandpoors.com), Moody's Investor Services Inc. (www.moodys.com), Fitch Ratings Inc. (www.fitchratings.com) and A.M. Best Co. (www.ambest.com).
* Check with your state's insurance department to be sure the company you're considering buying from is licensed to do business in your state.
* Remember, an annuity is a legally binding document. Read the annuity contract carefully and be sure your agent has answered your questions thoroughly before you buy. - NU
Structured Settlement Annuity: The Real Deal
Structured Settlement Annuities have been shown to provide a valuable, safe and guaranteed source of lifetime income to parties in personal injury or other cases. Today we look at situations where these special annuities would be helpful.
Personal injury.
This is obvious to most, but let's take a closer look at situations that might warrant such settlements.
Temporary or permanent disability.
A structured settlement can help here by making sure the cost, if any, of rehabilitation is covered.
Guardianship of minors or persons with diminished mental capacity.
We've seen before how dangerous mismanagement of a lump sum settlement for a child can seriously impact the future care of the child. Guaranteeing that care for the injured child will be covered will add greatly to the overall quality of life for the caretaker and the child.
Wrongful death, particularly when the surviving spouse and / or children need steady income.
When tragedy strikes the main money earner of a household loss to a family is felt in many ways. In some cases this can cause financial ruin to a family. A structured settlement can help replace the monthly income lost and provide a family piece of mind that the rent, bills etc will be paid for.
Severe injuries, especially those that result in shortened life expectancy.
Once again, protecting the financial future of the family or caregivers to make sure that specialized care is covered and monthly expenses are paid.
Cases where future needs can be determined today.
This is a bit more risky as it can be difficult to predict expenses in the future. However, certain costs may be fixed or are more easily anticipated like mortgages, tuition, and monthly bills.
If someone finds themselves in any of these situations, it's important to take these factors into consideration:
1-Significant, ongoing medical expenses
2-Rehabilitation or permanent care facility expenses
3-College tuition, retirement income, the down payment on a home or a mortgage payment
4-Replacement of monthly income, annual income or supplemental income<
Though some of these may seem too far in the future to think about, ignoring these will cause more hardship than necessary.
Personal injury.
This is obvious to most, but let's take a closer look at situations that might warrant such settlements.
Temporary or permanent disability.
A structured settlement can help here by making sure the cost, if any, of rehabilitation is covered.
Guardianship of minors or persons with diminished mental capacity.
We've seen before how dangerous mismanagement of a lump sum settlement for a child can seriously impact the future care of the child. Guaranteeing that care for the injured child will be covered will add greatly to the overall quality of life for the caretaker and the child.
Wrongful death, particularly when the surviving spouse and / or children need steady income.
When tragedy strikes the main money earner of a household loss to a family is felt in many ways. In some cases this can cause financial ruin to a family. A structured settlement can help replace the monthly income lost and provide a family piece of mind that the rent, bills etc will be paid for.
Severe injuries, especially those that result in shortened life expectancy.
Once again, protecting the financial future of the family or caregivers to make sure that specialized care is covered and monthly expenses are paid.
Cases where future needs can be determined today.
This is a bit more risky as it can be difficult to predict expenses in the future. However, certain costs may be fixed or are more easily anticipated like mortgages, tuition, and monthly bills.
If someone finds themselves in any of these situations, it's important to take these factors into consideration:
1-Significant, ongoing medical expenses
2-Rehabilitation or permanent care facility expenses
3-College tuition, retirement income, the down payment on a home or a mortgage payment
4-Replacement of monthly income, annual income or supplemental income<
Though some of these may seem too far in the future to think about, ignoring these will cause more hardship than necessary.
Should I Save Mad Money For A Rainy Day?
Yes, this is a good idea! I know you want to know what is mad money? Well, a long time ago this term came about when a young lady went out with her friend to a party and her friend left her at the party with no way home. So, the young lady was mad with her friend that left her at the party and luckily for her, she had money stowed away in her shoe to take a cab back home. She thought to herself on her way home in the cab, that it was good that her mother had taught her to always have money set aside for emergency situations such as this!
Thank goodness, this young lady had the forethought to stash her mad money away so she could take a cab back home, since her friend left her in a lurch. Get the point? Having an emergency fund whether it be mad money or saved money is important for you to have. You say, how do I go about doing this? Well, you can read these tips to help you learn what you can do:
1) Set up a savings account specifically for your emergency fund or mad money fund. Whatever you want to call it, just establish one!
2) Deposit a certain amount of money on a weekly, biweekly, or monthly basis in your account. You may want to set up automatic deposits to your account via your payroll department. Or, you may want to have your bank automatically withdraw a certain amount of money from your checking account into your emergency or mad money savings account.
3) Try to save at least 2-3 months of your monthly salary to cover your bills for at least three months if you were to loose your job. This amount of time will hopefully allow you the cushion you need until you secure new employment.
4) The money you save in your emergency or mad money account should be used for household emergencies, personal emergencies or if you’re no longer able to work. Don’t use it for other expenditures such as bills, travel, etc... Get the idea? It’s a savings account that you don’t want to touch unless it’s absolutely necessary!
5) Make sure the bank account you put your emergency or mad money into, is paying you the most interest you can earn for this account! Research as many sources as possible on securing the best interest rate you can get. Check with your bank, the internet, newspaper and other sources for the prevailing interest rate. You want to make sure your money can be accessed easily and quickly if you need it for an emergency!
By establishing an emergency or mad money fund, this will give you a better peace of mind if you need access to money when there is an emergency in your life. So, the sooner you start setting money aside for a rainy day, the better off you will be! Make sure the amount of money you contribute to your emergency or mad money fund, is realistic for your budget. Save as much as you can without upsetting your overall personal or family finances. So go ahead, get started today!
Thank goodness, this young lady had the forethought to stash her mad money away so she could take a cab back home, since her friend left her in a lurch. Get the point? Having an emergency fund whether it be mad money or saved money is important for you to have. You say, how do I go about doing this? Well, you can read these tips to help you learn what you can do:
1) Set up a savings account specifically for your emergency fund or mad money fund. Whatever you want to call it, just establish one!
2) Deposit a certain amount of money on a weekly, biweekly, or monthly basis in your account. You may want to set up automatic deposits to your account via your payroll department. Or, you may want to have your bank automatically withdraw a certain amount of money from your checking account into your emergency or mad money savings account.
3) Try to save at least 2-3 months of your monthly salary to cover your bills for at least three months if you were to loose your job. This amount of time will hopefully allow you the cushion you need until you secure new employment.
4) The money you save in your emergency or mad money account should be used for household emergencies, personal emergencies or if you’re no longer able to work. Don’t use it for other expenditures such as bills, travel, etc... Get the idea? It’s a savings account that you don’t want to touch unless it’s absolutely necessary!
5) Make sure the bank account you put your emergency or mad money into, is paying you the most interest you can earn for this account! Research as many sources as possible on securing the best interest rate you can get. Check with your bank, the internet, newspaper and other sources for the prevailing interest rate. You want to make sure your money can be accessed easily and quickly if you need it for an emergency!
By establishing an emergency or mad money fund, this will give you a better peace of mind if you need access to money when there is an emergency in your life. So, the sooner you start setting money aside for a rainy day, the better off you will be! Make sure the amount of money you contribute to your emergency or mad money fund, is realistic for your budget. Save as much as you can without upsetting your overall personal or family finances. So go ahead, get started today!
Saving Money at the Pump
A recent report in the Financial Times predicted that the average price for a gallon of gasoline in the United States may soon reach $3.00 . . . that's the bad news! The good news is, skyrocketing gasoline prices have caused many Americans to start looking for ways to either cut back on the miles they drive or find ways to make their cars more fuel efficient. That's good news because these fuel-saving attempts and attitudes will help reduce the fuel emissions that regularly foul our atmosphere. The question remains, just what do we need to do to spend less on gas and reap the reward of cleaner air; a few tips follow:
Get your car in shape
A well maintained car will burn less gas than one that has been neglected:
1. Keep your tires properly inflated; check your car's user's manual or look for the sticker that gives you the recommended tire inflation pressure. If your tires need replacement, look for tires that are rated as LRR (Low Rolling Resistance). Proper tire inflation along with the LRR tires will be your biggest fuel savers.
2. Change your motor oil at the manufacturer's recommended intervals and be sure to use the recommended 'weight' (viscosity) motor oil. While changing your oil, change the oil filter and check the engine air filter -- the air filter may not need to be changed every time you change your oil but it should be checked every time.
3. When you buy gas, pay attention to the octane rating marked on the gas pump -- it should fall within the octane range recommended by your car's manufacturer.
4. Buy your car a 'tune up' at the manufacturer's recommended interval -- on modern cars a tune up is mainly replacing the spark plugs, checking the engine timing and checking the spark plug wires.
Drive smart
How, where and when you drive are equally important factors in your attempt to save gas money and keep the air clean:
1. Do you really need to drive? Every trip to the store does not require car keys; walking a couple blocks will not only save your gas money it will help keep you in good health. More than just a couple blocks? Dust off your bicycle (or buy one) for those trips that are not more than two or three miles. Also consider public transportation and car pooling to and from work as gas-saving alternatives to your ignition key. If telecommuting is an option for your job, take it!
2. If you do need to drive, plan your route! Sometimes the shortest route has the most traffic congestion so you are wise to take the longer, less-traveled route to save gas by not being stuck in slow traffic. If possible, arrange your work schedule to allow you to drive to and from work in less congested traffic.
3. Slow and steady wins the race.“ When pulling away from a stop light or stop sign, go easy on the gas pedal and gradually increase speed -- jackrabbit starts are really bad for fuel efficiency . . . sudden stops don't help either, if you find yourself jamming on the breaks, you are driving too aggressively -- slow down and 'mellow out'!. When you're finally on the highway, keep your speed at the posted speed limit and, if you have a cruise control use it.
Some other fuel saving tips
1. Don't spoil your car's aerodynamics by placing luggage or other things on top of your car.
2. Keep your car windows closed; in the summer air conditioning won't effect your gas mileage as much as open windows.
3. Travel as light as you can -- more weight in your car equals poorer gas mileage.
4. If you rent a car you'll be buying your own gas so rent the most fuel-efficient car available.
5. If you are ready to trade your car in for a new one, give serious consideration to a hybrid vehicle or at least a vehicle with the best gas mileage rating you can find.
Rising gas prices will probably be with us for quite a long time so take some of these tips to heart to save money and save our environment.
Get your car in shape
A well maintained car will burn less gas than one that has been neglected:
1. Keep your tires properly inflated; check your car's user's manual or look for the sticker that gives you the recommended tire inflation pressure. If your tires need replacement, look for tires that are rated as LRR (Low Rolling Resistance). Proper tire inflation along with the LRR tires will be your biggest fuel savers.
2. Change your motor oil at the manufacturer's recommended intervals and be sure to use the recommended 'weight' (viscosity) motor oil. While changing your oil, change the oil filter and check the engine air filter -- the air filter may not need to be changed every time you change your oil but it should be checked every time.
3. When you buy gas, pay attention to the octane rating marked on the gas pump -- it should fall within the octane range recommended by your car's manufacturer.
4. Buy your car a 'tune up' at the manufacturer's recommended interval -- on modern cars a tune up is mainly replacing the spark plugs, checking the engine timing and checking the spark plug wires.
Drive smart
How, where and when you drive are equally important factors in your attempt to save gas money and keep the air clean:
1. Do you really need to drive? Every trip to the store does not require car keys; walking a couple blocks will not only save your gas money it will help keep you in good health. More than just a couple blocks? Dust off your bicycle (or buy one) for those trips that are not more than two or three miles. Also consider public transportation and car pooling to and from work as gas-saving alternatives to your ignition key. If telecommuting is an option for your job, take it!
2. If you do need to drive, plan your route! Sometimes the shortest route has the most traffic congestion so you are wise to take the longer, less-traveled route to save gas by not being stuck in slow traffic. If possible, arrange your work schedule to allow you to drive to and from work in less congested traffic.
3. Slow and steady wins the race.“ When pulling away from a stop light or stop sign, go easy on the gas pedal and gradually increase speed -- jackrabbit starts are really bad for fuel efficiency . . . sudden stops don't help either, if you find yourself jamming on the breaks, you are driving too aggressively -- slow down and 'mellow out'!. When you're finally on the highway, keep your speed at the posted speed limit and, if you have a cruise control use it.
Some other fuel saving tips
1. Don't spoil your car's aerodynamics by placing luggage or other things on top of your car.
2. Keep your car windows closed; in the summer air conditioning won't effect your gas mileage as much as open windows.
3. Travel as light as you can -- more weight in your car equals poorer gas mileage.
4. If you rent a car you'll be buying your own gas so rent the most fuel-efficient car available.
5. If you are ready to trade your car in for a new one, give serious consideration to a hybrid vehicle or at least a vehicle with the best gas mileage rating you can find.
Rising gas prices will probably be with us for quite a long time so take some of these tips to heart to save money and save our environment.
Point and Click Your Financial Plan
You've organized the contents of that bulging shoebox and tracked down the stray receipts lurking in jacket pockets. Now you're ready to point and click your way to what you hope will be a generous tax refund.
But while your records are still organized and your computer's still on, why not look beyond that refund to your financial future?
Using do-it-yourself online financial tools, planning ahead is easier and more convenient than you may think.
"The purpose of creating a financial plan is to define what you hope to achieve in terms of financial success," says Peter J. Rossi, director of financial planning for NetBank. "If you take the time to write down what you want to achieve, you're much more likely to achieve it."
For NetBank customers, it's as easy as clicking on your mouse.
The bank's online interactive planning tools include an Express Planner that provides an overview of the customer's current finances; plans for specific goals, like retirement, education and insurance; and a Comprehensive Planner that integrates all the others for setting multiple goals.
In addition, the bank offers access to brokerage services and other investment and insurance products.
Dedicated financial advisers are available to help analyze the plan, answer any questions and help put the plan into action.
Financial planning isn't just for people with excess wealth. Financial planners recommend that everyone have a plan in place for their financial future.
The experts at NetBank recommend taking control of spending by tracking expenses over two to three months. After you get a clear idea of your expenses, develop a plan to spend less and save more.
For instance, you could consolidate your high-interest debt by refinancing your home or getting a home equity credit line.
They also suggest reviewing the asset allocation in your investment portfolio to confirm that it's in alignment with your goals. And make sure your insurance coverage is enough for your financial position.
But while your records are still organized and your computer's still on, why not look beyond that refund to your financial future?
Using do-it-yourself online financial tools, planning ahead is easier and more convenient than you may think.
"The purpose of creating a financial plan is to define what you hope to achieve in terms of financial success," says Peter J. Rossi, director of financial planning for NetBank. "If you take the time to write down what you want to achieve, you're much more likely to achieve it."
For NetBank customers, it's as easy as clicking on your mouse.
The bank's online interactive planning tools include an Express Planner that provides an overview of the customer's current finances; plans for specific goals, like retirement, education and insurance; and a Comprehensive Planner that integrates all the others for setting multiple goals.
In addition, the bank offers access to brokerage services and other investment and insurance products.
Dedicated financial advisers are available to help analyze the plan, answer any questions and help put the plan into action.
Financial planning isn't just for people with excess wealth. Financial planners recommend that everyone have a plan in place for their financial future.
The experts at NetBank recommend taking control of spending by tracking expenses over two to three months. After you get a clear idea of your expenses, develop a plan to spend less and save more.
For instance, you could consolidate your high-interest debt by refinancing your home or getting a home equity credit line.
They also suggest reviewing the asset allocation in your investment portfolio to confirm that it's in alignment with your goals. And make sure your insurance coverage is enough for your financial position.
Performance Contracting Helps Save on Energy Costs
To improve energy efficiency, some companies are doing more than just turning out the lights at the end of the day.
As soaring energy costs increasingly affect the bottom line of U.S. businesses, the "energy performance contract" has become an attractive solution for commercial building owners. This contract is a financing or operating lease offered by an energy service company, also known as an ESCO, to help businesses improve the energy efficiency of their buildings or facilities.
The key to energy performance contracting is to use long-term utility savings to fund the improvements. The ESCO often guarantees energy savings that will meet or exceed annual payments to cover all project costs, usually over a contract term of seven to 20 years.
"A building owner either pays a utility for an inefficient building, or they can pay an ESCO to improve their building," says Jeff Stokes, a vice president at World Energy Solutions, a publicly traded ESCO (symbol: WEGY) based in St. Petersburg, Fla.
World Energy Solutions strives to reduce kilowatt usage by up to 30 percent. The company offers a variety of services, including utility billing and rate analysis, energy auditing, installation of building improvements, building systems maintenance and ongoing monitoring and verification of the energy savings.
ESCOs can provide flexible and unique ways to finance their services. For example, World Energy Solutions offers to pay the
total up-front cost of installation as well as equipment maintenance in return for an 80 percent share of the actual savings realized over a minimum 10-year period.
"In some cases, our company will fund the entire installation, at no charge to our customer, and live off the savings we generate over a certain amount of time," says Ben Croxton, chief executive officer of World Energy Solutions.
ESCOs not only identify energy-saving opportunities, but also develop engineering designs and specifications and manage the entire process. They also can provide staff training and ongoing maintenance services.
Even the federal government has gotten into the act, and for good reason: Executive orders that require federal agencies to use 35 percent less energy by 2010 in comparison to 1985 levels will require $5 billion in energy projects. Much of that will go to "Super Energy Savings Performance Contracts," offered by the Department of Energy.
As soaring energy costs increasingly affect the bottom line of U.S. businesses, the "energy performance contract" has become an attractive solution for commercial building owners. This contract is a financing or operating lease offered by an energy service company, also known as an ESCO, to help businesses improve the energy efficiency of their buildings or facilities.
The key to energy performance contracting is to use long-term utility savings to fund the improvements. The ESCO often guarantees energy savings that will meet or exceed annual payments to cover all project costs, usually over a contract term of seven to 20 years.
"A building owner either pays a utility for an inefficient building, or they can pay an ESCO to improve their building," says Jeff Stokes, a vice president at World Energy Solutions, a publicly traded ESCO (symbol: WEGY) based in St. Petersburg, Fla.
World Energy Solutions strives to reduce kilowatt usage by up to 30 percent. The company offers a variety of services, including utility billing and rate analysis, energy auditing, installation of building improvements, building systems maintenance and ongoing monitoring and verification of the energy savings.
ESCOs can provide flexible and unique ways to finance their services. For example, World Energy Solutions offers to pay the
total up-front cost of installation as well as equipment maintenance in return for an 80 percent share of the actual savings realized over a minimum 10-year period.
"In some cases, our company will fund the entire installation, at no charge to our customer, and live off the savings we generate over a certain amount of time," says Ben Croxton, chief executive officer of World Energy Solutions.
ESCOs not only identify energy-saving opportunities, but also develop engineering designs and specifications and manage the entire process. They also can provide staff training and ongoing maintenance services.
Even the federal government has gotten into the act, and for good reason: Executive orders that require federal agencies to use 35 percent less energy by 2010 in comparison to 1985 levels will require $5 billion in energy projects. Much of that will go to "Super Energy Savings Performance Contracts," offered by the Department of Energy.
Just Fill Survey and Get Paid Cash, It is That Simple!
Fill survey and get paid cash: many of us are wondering if it really can be that simple. Actually, it is just that simple!
You can get paid money for simply filling out a survey. Getting money for filling out a questionnaire is not a new concept. In fact it has been around for many years. Recently with the introduction of the Internet survey companies have started incorporating online surveys as part of their market research.
To earn money for complete a survey you are basically agreeing to be one of the statistics that a company is going to use for their own purposes. There are a variety of reasons for companies to use paid surveys to gather their market research, but the biggest reason is the variety of survey responses they will get.
To earn a survey pay day, you need to be registered with an online company that can match you up with paying surveys. There are a variety of ways to earn money through this type of system. But the easiest way is to find someone else who is earning money for filling out surveys and ask them to recommend a company you could work through. If you work hard, it is possible to earn a high level of pay as a full-time survey taker.
After you have found a good company to work with, then it is your responsibility to register with all the individual companies that need survey takers. This process should never cost you money, but it can take up a lot of your time. You need to register with all the individual companies that you would like to receive surveys from in order to get a cash paid survey.
Once you have registered with the individual companies, they will begin sending you surveys to start filling out for money. Simply respond to all the questions on the survey and follow all the directions and you will get paid. It is really as simple as that!
After you have filled out a few surveys, you may start to get a feel for it and actually want to work more. It is easy to increase your survey workload and start earning some really good money. Just add one or two more surveys a day to your regular routine until you have reached the amount of money you are happy with.
Many people also find they can earn good money referring other people to the survey website that they are using. Most survey companies pay very well for their referrals. Referrals are also the best way for you to learn about other good paying survey companies.
Paid surveys are real and they are available to anybody that is willing to take the time to fill them out. If you are dedicated to making money doing online surveys, then you will be able to make money. The more dedicated you are the more money you can make! It really is just as simple as that.
You can get paid money for simply filling out a survey. Getting money for filling out a questionnaire is not a new concept. In fact it has been around for many years. Recently with the introduction of the Internet survey companies have started incorporating online surveys as part of their market research.
To earn money for complete a survey you are basically agreeing to be one of the statistics that a company is going to use for their own purposes. There are a variety of reasons for companies to use paid surveys to gather their market research, but the biggest reason is the variety of survey responses they will get.
To earn a survey pay day, you need to be registered with an online company that can match you up with paying surveys. There are a variety of ways to earn money through this type of system. But the easiest way is to find someone else who is earning money for filling out surveys and ask them to recommend a company you could work through. If you work hard, it is possible to earn a high level of pay as a full-time survey taker.
After you have found a good company to work with, then it is your responsibility to register with all the individual companies that need survey takers. This process should never cost you money, but it can take up a lot of your time. You need to register with all the individual companies that you would like to receive surveys from in order to get a cash paid survey.
Once you have registered with the individual companies, they will begin sending you surveys to start filling out for money. Simply respond to all the questions on the survey and follow all the directions and you will get paid. It is really as simple as that!
After you have filled out a few surveys, you may start to get a feel for it and actually want to work more. It is easy to increase your survey workload and start earning some really good money. Just add one or two more surveys a day to your regular routine until you have reached the amount of money you are happy with.
Many people also find they can earn good money referring other people to the survey website that they are using. Most survey companies pay very well for their referrals. Referrals are also the best way for you to learn about other good paying survey companies.
Paid surveys are real and they are available to anybody that is willing to take the time to fill them out. If you are dedicated to making money doing online surveys, then you will be able to make money. The more dedicated you are the more money you can make! It really is just as simple as that.
Investors and Financial Execs Agree: Dividends Are On the Rise
In a recent study released by Boston-based investment manager, Eaton Vance, senior finance executives at dividend-paying American corporations agreed that stocks that pay dividends are growing in appeal. The nationwide survey of executives from all major corporate sectors also projected long-term dividend growth.
The survey, conducted by Penn, Schoen & Berland Associates, Inc., revealed that 47 percent of finance executives anticipate dividend growth to continue to outpace earnings growth in 2006. These projections dovetail with research by Standard & Poor's, which found that dividends rose faster than corporate earnings over the past year. Duncan Richardson, executive vice president and chief equity investment officer of Eaton Vance remarked, "With strong balance sheets and cash flows, American companies have the means and motivation to continue to increase dividends."
How long is this trend likely to continue? Of executives who believe dividends will continue to outpace earnings, a majority (60 percent) expect the trend to last for one to two years. An additional 25 percent anticipate the trend will last up to five years. However, the duration of this trend may depend on whether Congress extends the current reduced tax rate on dividends. According to Mr. Richardson, "Businesses may not continue increasing their dividends if the tax cut extensions fail to go through and dividends once again are taxed at a higher rate."
Regardless of the possible extension to current tax act provisions, "the important takeaway is companies are increasingly returning more to investors in the form of dividends," said Mr. Richardson. As many dividend-paying companies use excess cash to increase dividends, six out of seven finance executives polled said they consider a company's track record of increasing annual dividends as a way of displaying shareholder friendly behavior. Furthermore, four out of five believe a firm's dividend growth rate can give investors confidence in the company's projected long-term growth potential.
Investors who were polled last year in Eaton Vance's sixth annual investor survey agreed with these sentiments. A majority of investors polled held a very positive view of companies that pay dividends (78 percent), seeing them as predictable cash generators and viewing dividends as a sign of financial strength.
"There has been a significant shift in investor preference from an emphasis on growth investing towards a more value-oriented conservative investment style," said Mr. Richardson. "In the 1990s, investors preferred companies that offered buybacks-which increase reported earnings per share-over dividends." As the results of the Eaton Vance study reveal, a majority of polled individual investors (57 percent) now say they prefer regular quarterly dividends over stock buybacks (23 percent) or special dividends (8 percent).
According to Mr. Richardson, "Dividends have returned to popularity, and value investing has emerged from the doghouse."
Eaton Vance Corp. is a Boston-based investment management firm whose stock trades on the New York Stock Exchange under the symbol EV. Eaton Vance and its affiliates managed over $113.3 billion in assets as of January 31, 2006, for more than 100 investment companies, as well as individual and institutional accounts, including those of corporations, hospitals, retirement plans, universities, foundations and trusts.
Penn, Schoen & Berland Associates, Inc. is a Washington, D.C.-based full-service strategic polling and market research firm.
Before investing in any Eaton Vance Fund, prospective investors should consider carefully the Fund's investment objectives, risks, and charges and expenses. The Fund's current prospectus contains this and other information about the Fund and is available through your financial advisor. Read the prospectus carefully before you invest or send money.
The survey, conducted by Penn, Schoen & Berland Associates, Inc., revealed that 47 percent of finance executives anticipate dividend growth to continue to outpace earnings growth in 2006. These projections dovetail with research by Standard & Poor's, which found that dividends rose faster than corporate earnings over the past year. Duncan Richardson, executive vice president and chief equity investment officer of Eaton Vance remarked, "With strong balance sheets and cash flows, American companies have the means and motivation to continue to increase dividends."
How long is this trend likely to continue? Of executives who believe dividends will continue to outpace earnings, a majority (60 percent) expect the trend to last for one to two years. An additional 25 percent anticipate the trend will last up to five years. However, the duration of this trend may depend on whether Congress extends the current reduced tax rate on dividends. According to Mr. Richardson, "Businesses may not continue increasing their dividends if the tax cut extensions fail to go through and dividends once again are taxed at a higher rate."
Regardless of the possible extension to current tax act provisions, "the important takeaway is companies are increasingly returning more to investors in the form of dividends," said Mr. Richardson. As many dividend-paying companies use excess cash to increase dividends, six out of seven finance executives polled said they consider a company's track record of increasing annual dividends as a way of displaying shareholder friendly behavior. Furthermore, four out of five believe a firm's dividend growth rate can give investors confidence in the company's projected long-term growth potential.
Investors who were polled last year in Eaton Vance's sixth annual investor survey agreed with these sentiments. A majority of investors polled held a very positive view of companies that pay dividends (78 percent), seeing them as predictable cash generators and viewing dividends as a sign of financial strength.
"There has been a significant shift in investor preference from an emphasis on growth investing towards a more value-oriented conservative investment style," said Mr. Richardson. "In the 1990s, investors preferred companies that offered buybacks-which increase reported earnings per share-over dividends." As the results of the Eaton Vance study reveal, a majority of polled individual investors (57 percent) now say they prefer regular quarterly dividends over stock buybacks (23 percent) or special dividends (8 percent).
According to Mr. Richardson, "Dividends have returned to popularity, and value investing has emerged from the doghouse."
Eaton Vance Corp. is a Boston-based investment management firm whose stock trades on the New York Stock Exchange under the symbol EV. Eaton Vance and its affiliates managed over $113.3 billion in assets as of January 31, 2006, for more than 100 investment companies, as well as individual and institutional accounts, including those of corporations, hospitals, retirement plans, universities, foundations and trusts.
Penn, Schoen & Berland Associates, Inc. is a Washington, D.C.-based full-service strategic polling and market research firm.
Before investing in any Eaton Vance Fund, prospective investors should consider carefully the Fund's investment objectives, risks, and charges and expenses. The Fund's current prospectus contains this and other information about the Fund and is available through your financial advisor. Read the prospectus carefully before you invest or send money.
How You And Your Partner Should Save Money
Most newly-married couples are having a hard time adjusting to a different way of life, especially when it comes to financial matters. As separate individuals, your spending habits will differ. This is why you both need to make certain adjustments to combine the household budget.
Here are some ways on how you and your partner can make the ‘financial aspect’ of your marriage harmonious and organized:
1. Understand the way that you both look at money.
If you and your spouse have different beliefs when it comes to money matters, sit down and discuss it. The key here is to be able to compromise. For some people, money is a security measure that needs to be saved. Other people spend it luxuriously and look at spending money as a means to reward themselves for their work. Still, other people are very thrifty that they hardly ever spend a cent of what they have earned.
Understand that the way that you both treat and spend money stems from how you were brought up by your parents. Think of everything that you need to discuss when it comes to your household budget. If possible, set rules on how you will spend your combined income on utility bills, food, mortgage, car maintenance, etc.
2. Set future financial goals.
If you are newly weds and you are planning to have a baby soon, consider this when organizing your finances. If you are a couple nearing the age of retirement, you can make plans on where you will spend your leisure years. Setting long-term and short-term goals will help you finalize your financial plans.
3. Share your money-saving skills with your partner.
If you have different family backgrounds, then you would have something to contribute towards organizing your joints assets. Make each other aware of your personal finances then think of ways on how you can further boost your money-handling tactics.
By following these tips, you will surely have your finances organized to lead a more comfortable lifestyle.
Here are some ways on how you and your partner can make the ‘financial aspect’ of your marriage harmonious and organized:
1. Understand the way that you both look at money.
If you and your spouse have different beliefs when it comes to money matters, sit down and discuss it. The key here is to be able to compromise. For some people, money is a security measure that needs to be saved. Other people spend it luxuriously and look at spending money as a means to reward themselves for their work. Still, other people are very thrifty that they hardly ever spend a cent of what they have earned.
Understand that the way that you both treat and spend money stems from how you were brought up by your parents. Think of everything that you need to discuss when it comes to your household budget. If possible, set rules on how you will spend your combined income on utility bills, food, mortgage, car maintenance, etc.
2. Set future financial goals.
If you are newly weds and you are planning to have a baby soon, consider this when organizing your finances. If you are a couple nearing the age of retirement, you can make plans on where you will spend your leisure years. Setting long-term and short-term goals will help you finalize your financial plans.
3. Share your money-saving skills with your partner.
If you have different family backgrounds, then you would have something to contribute towards organizing your joints assets. Make each other aware of your personal finances then think of ways on how you can further boost your money-handling tactics.
By following these tips, you will surely have your finances organized to lead a more comfortable lifestyle.
High Interest Credit Cards
Most high interest credit cards are usually easy to get and really the interest rate only matters if you roll over your balances from month to month. People that have had bankruptcies, judgments or just have a bad credit rating, for what ever reason are the most common applicants for high interest credit cards. Many low interest credit cards will allow you to transfer balances from your high interest credit cards but you must have a decent credit rating. The most important thing about a balance transfer card is the amount of money it will save you, especially if you have a high interest credit card that you carry a balance on.
Credit
Beware some credit card companies will try multiple ploys to get you signed up and then if your late on a payment for some reason, charge large fees even if your credit card payment is only one or two days late. Those who want to apply for a major high interest credit card to re-establish or to establish new credit should consider the price they will ultimately pay. Even those who don not qualify for low interest credit cards should still shop and compare to get the best deal available.
Interest
Most major financial companies base the interest rates on your credit score, this tells them whether you pay on time and just how you use your credit. If you have a card with high interest rates you DO NOT want to carry a balance. If you do get a low interest credit card and make a payment late, the default interest rate goes into affect, sometimes up to 22 percent, making it very hard to ever get caught up. The difference between high interest credit cards and low could be hundreds and even thousands of dollars a year.
Getting your high interest credit cards paid off should be your top concern. When your credit score improves try to transfer all of your high interest credit card balances, some transfer cards even offer 0 introductory offers for balance transfers, thus making it much faster and easier to pay off your debt.
Credit
Beware some credit card companies will try multiple ploys to get you signed up and then if your late on a payment for some reason, charge large fees even if your credit card payment is only one or two days late. Those who want to apply for a major high interest credit card to re-establish or to establish new credit should consider the price they will ultimately pay. Even those who don not qualify for low interest credit cards should still shop and compare to get the best deal available.
Interest
Most major financial companies base the interest rates on your credit score, this tells them whether you pay on time and just how you use your credit. If you have a card with high interest rates you DO NOT want to carry a balance. If you do get a low interest credit card and make a payment late, the default interest rate goes into affect, sometimes up to 22 percent, making it very hard to ever get caught up. The difference between high interest credit cards and low could be hundreds and even thousands of dollars a year.
Getting your high interest credit cards paid off should be your top concern. When your credit score improves try to transfer all of your high interest credit card balances, some transfer cards even offer 0 introductory offers for balance transfers, thus making it much faster and easier to pay off your debt.
Great Money Saving Tips
Everyone wants to save money, but no one wants to change his or her lifestyle to do so. Many people think that the only way to save is to go without; Give up eating out at restaurants, stop going to the movies, stop shopping, etc. This is not the case! It is very simple to still enjoy going out, as well as save money. You just have to find ways to spend less while going out. Here are some examples:
When going to a restaurant:
ท Always use coupons! I can’t stress that enough. There are many ways to find them. The Sunday paper usually has coupons for a few restaurants. Many restaurants send out coupons in the mail hoping to get you to visit them. The Entertainment Book has coupons for many restaurants. The restaurant’s own website might have a coupon that you can print out and bring in. Sometimes you will find coupons in their take-out menu. You will be able to save a few dollars just for taking a few seconds to look for a coupon.
ท Share a meal. If you’re going out to dinner, many times you can get away with ordering one main course and an appetizer or salad and sharing them with your partner since the portions are so large. By splitting them, you will save a lot more then if you had each gotten your own meal, plus you will get more of a selection since you’ll get to taste both an appetizer and an entr้e.
When wanting to see a movie:
ท If you want to go to the movies, consider going during the day, or in the early evening. These are all considered matinee showings, and you will usually pay about half of the price you would pay at night! It doesn’t sound like that big of a savings, but if you go to the movies just once a month, you can save $54 a year per person. You’ll save even more if you go more often!
ท If you want to save even more money, you can rent the movie once it goes to DVD. Many websites will allow you to buy packs of 10 DVD rentals, and you will end up saving anywhere from $0.50-$1.50 per rental! This can really add up. If you rent one movie per week, you can save up to $78 a year! Also keep an eye out for coupons that allow you to rent one and get the second free.
There are many other simple things you can do to save money when going out to enjoy different forms of entertainment. For other tips like the ones you just read, see the website below.
When going to a restaurant:
ท Always use coupons! I can’t stress that enough. There are many ways to find them. The Sunday paper usually has coupons for a few restaurants. Many restaurants send out coupons in the mail hoping to get you to visit them. The Entertainment Book has coupons for many restaurants. The restaurant’s own website might have a coupon that you can print out and bring in. Sometimes you will find coupons in their take-out menu. You will be able to save a few dollars just for taking a few seconds to look for a coupon.
ท Share a meal. If you’re going out to dinner, many times you can get away with ordering one main course and an appetizer or salad and sharing them with your partner since the portions are so large. By splitting them, you will save a lot more then if you had each gotten your own meal, plus you will get more of a selection since you’ll get to taste both an appetizer and an entr้e.
When wanting to see a movie:
ท If you want to go to the movies, consider going during the day, or in the early evening. These are all considered matinee showings, and you will usually pay about half of the price you would pay at night! It doesn’t sound like that big of a savings, but if you go to the movies just once a month, you can save $54 a year per person. You’ll save even more if you go more often!
ท If you want to save even more money, you can rent the movie once it goes to DVD. Many websites will allow you to buy packs of 10 DVD rentals, and you will end up saving anywhere from $0.50-$1.50 per rental! This can really add up. If you rent one movie per week, you can save up to $78 a year! Also keep an eye out for coupons that allow you to rent one and get the second free.
There are many other simple things you can do to save money when going out to enjoy different forms of entertainment. For other tips like the ones you just read, see the website below.
Finding A Personal Budget That Can Work For You
A good way to prevent yourself from digging yourself further and further into debt is to form a personal budget that can work for you. Many people spend their hard earned money frivolously without having much regards to how much money they will have left before their next paycheck comes. They will often find themselves having no money left and ending up having to borrow from a lender just to pay essential bills or provide for their family. The problem with this type of spending is that you tend to incur debts that will begin to cause added problems with your finances that you become unable to pay off your debts when needed.
This is not the correct way of handling your finances. By creating a personal budget you will begin to plan all of your financial aspects and prioritizing items. Eventually you will achieve a successful financial situation you will enjoy. The first thing you need to do is take a careful assessment of your needs on three different basis:
• Short Term
• Medium Term
• Long Term
Ask yourself a few questions, what are you objectives? What is it you would like to achieve over time? What are your targets for your budget? Make a list of all of these things, then you should begin to layout your financial means.
Itemize your income and your expenses monthly, then itemize the expensive starting with the most important ones, important expenses, and then least important. Find and implement a prioritizing formula that will work well for you and your situation. Assess your consumption costs monthly write your figures down. After you have done this, jot down your sources of income and what each one brings in on a monthly basis. Place your expenses on the right and your income on the left hand side. Add each column up then subtract to find the difference. You will want to figure out rather you have a deficit or surplus.
Figure out what you can actually afford and amend the budget, once you have established a working budget that will help you, print it out and stick to it. Sticking to the budget is perhaps the most important aspect of creating a personal budget. If you fail to adhere to the budget, you will not have helped your financial situation by any means, it is likely you will only further your debt.
This is not the correct way of handling your finances. By creating a personal budget you will begin to plan all of your financial aspects and prioritizing items. Eventually you will achieve a successful financial situation you will enjoy. The first thing you need to do is take a careful assessment of your needs on three different basis:
• Short Term
• Medium Term
• Long Term
Ask yourself a few questions, what are you objectives? What is it you would like to achieve over time? What are your targets for your budget? Make a list of all of these things, then you should begin to layout your financial means.
Itemize your income and your expenses monthly, then itemize the expensive starting with the most important ones, important expenses, and then least important. Find and implement a prioritizing formula that will work well for you and your situation. Assess your consumption costs monthly write your figures down. After you have done this, jot down your sources of income and what each one brings in on a monthly basis. Place your expenses on the right and your income on the left hand side. Add each column up then subtract to find the difference. You will want to figure out rather you have a deficit or surplus.
Figure out what you can actually afford and amend the budget, once you have established a working budget that will help you, print it out and stick to it. Sticking to the budget is perhaps the most important aspect of creating a personal budget. If you fail to adhere to the budget, you will not have helped your financial situation by any means, it is likely you will only further your debt.
Do You Really Need to Buy A New Car?
I have notice that keep on changing new car has become a trend of today’s life in city. People keep on switching to new car for no reason. It seems like car has become a way for people to express and show their status. Every year there are so many new car models coming up. So they keep on changing the car whenever they saw some new models that they like.
I had even heard people saying this: ‘Since I need to pay for my installment every month, then why don’t I switch to a better new car?’ It seems like paying car installment has become part of people’s routine life where if they don’t pay for the installment, they don’t know what to do with the money. Maybe people have forgot that they don’t have to pay for car installment if they don’t want to.
I know that I may offend a lot of people by saying that buying a new car is not necessary. However what I am saying is not that you cannot buy a new car. But when you wanted to buy a new car, think about why do you want to buy it. Is it neccesary? Do you want to buy it because you need it? Or you want to buy it simply because you wanted to show off to people that you are rich. Do you buy the car to boost up your ego?
For me, I only buy a car when it is needed. When I say needed, I mean that I really need the car. Not for no reason, not for showing off purpose. If my house is located at an area where I have no access to public transports, then I will consider to buy a car. If my old car has too many problems, then I will consider to switch to a new car.
Currently I have a car of 5++ years old. I have no intention to change a new car right now as my current car is still in good condition. I plan to use the car for at least 10 years if the conditions are ok. Actually the car is currently used by my wife to drive to work. For myself I am actually taking public transport (LRT). I have no intention to buy a second car although there is no problem in getting one financially.
With this I can save at least RM1000 per month. I would rather leverage this RM1000 per month for other purpose for example paying extra for my house loan. This way I can finish my house loan faster and reduce the interest. Why do I want to increase my expense to somewhere that I don’t really need. I can even use the extra money to do some investment. This will improve my financial situation.
I had even heard people saying this: ‘Since I need to pay for my installment every month, then why don’t I switch to a better new car?’ It seems like paying car installment has become part of people’s routine life where if they don’t pay for the installment, they don’t know what to do with the money. Maybe people have forgot that they don’t have to pay for car installment if they don’t want to.
I know that I may offend a lot of people by saying that buying a new car is not necessary. However what I am saying is not that you cannot buy a new car. But when you wanted to buy a new car, think about why do you want to buy it. Is it neccesary? Do you want to buy it because you need it? Or you want to buy it simply because you wanted to show off to people that you are rich. Do you buy the car to boost up your ego?
For me, I only buy a car when it is needed. When I say needed, I mean that I really need the car. Not for no reason, not for showing off purpose. If my house is located at an area where I have no access to public transports, then I will consider to buy a car. If my old car has too many problems, then I will consider to switch to a new car.
Currently I have a car of 5++ years old. I have no intention to change a new car right now as my current car is still in good condition. I plan to use the car for at least 10 years if the conditions are ok. Actually the car is currently used by my wife to drive to work. For myself I am actually taking public transport (LRT). I have no intention to buy a second car although there is no problem in getting one financially.
With this I can save at least RM1000 per month. I would rather leverage this RM1000 per month for other purpose for example paying extra for my house loan. This way I can finish my house loan faster and reduce the interest. Why do I want to increase my expense to somewhere that I don’t really need. I can even use the extra money to do some investment. This will improve my financial situation.
Debit & ATM Cards
The following article covers the liabilities of fraudulent activities for credit cards, ATM cards and debit cards.
Many people find it easy and convenient to use credit cards and ATM or debit cards. The Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) offer procedures for you to use if your cards are lost or stolen.
Limiting Your Financial Loss
It is faster and easier to process financial transactions today than ever before. Thanks to the electronic age, check cards, debit cards, and ATM cards give us instant access to funds on deposit at the local bank or a financial institution miles away. This also provides an avenue of opportunity for thieves and scam artists to rapidly deplete our financial reserves as well.
There are laws in place that provide a measure of protection from total financial ruination, but you need to be aware of your rights and responsibilities should your cards be stolen or appropriated for mischief. The Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) are two laws implemented on a federal level that can assist individuals targeted by the criminal element. For the laws to work properly, however, you need to invoke the protective measures by doing certain things if your cards are lost or stolen such as reporting the loss or theft promptly to the issuers.
Limit Your Financial Loss
As soon as you discover the loss or possible theft of your credit cards and your ATM or debit cards you must immediately notify the companies that issued the cards so they will have that fact on record and can monitor the cards for unusual activities. You can usually find toll-free numbers for the 24 hour help line on the back of the card or on your billing statement. It is a good idea to make a list of your cards, along with the account identification and the toll-free numbers, for reporting their loss. When you travel be sure to keep this information separate from the cards so you will have access to the information should you have a need to make a report while away from home.
Keep a record of the companies you notified. Follow up the phone call with a letter that includes all of the pertinent information such as account number, when you noticed your card was missing, and the date you first reported the loss.
As a side note, you might want to check your homeowner’s insurance policy to see if it covers the liability amount you are responsible for in the case of theft. If you do not currently have such coverage, you might want to contact your insurer to include this protection in your policy.
Under the Credit Card Loss or Fraudulent Charges (FCBA) act, the maximum liability for illegal use of your credit card is $50 per card. If you report the loss before any unauthorized charges are posted you cannot be held liable for any of the charges. If the charges are made using your account number, but not the card itself, you will not be held responsible for any of the charges. The FCBA specifically says the card issuer cannot hold you responsible for any unauthorized charges and limits your loss to $50 of the charges made on the cards prior to you reporting them lost or stolen.
You should always review your card billing statements for errors, but following the loss or theft of the cards you should be even more diligent. If you notice anything amiss in the statement, send a letter to the card issuer along with a description of the questionable charge. Remind them of the phone call you made and the letter you previously sent notifying them of the loss or theft of the cards. There is usually a separate address on the statement to which you will direct billing errors. Do not send the letter along with your payment unless you are directed to do so by the card company.
The Electronic Fraudulent Transfer Act (EFTA) also protects you from fraudulent use of your bankcards. Federal protection from loss due to unauthorized use of your ATM or debit card depends on how quickly you report the loss. For example, if you report the loss before the card is used, the EFTA protects you from any loss. If the report is made within two business days after noticing the loss you will not be responsible for more than $50 on each card.
If you fail to make a report within two business days after you discover the loss, you could be held responsible for up to $500. If you wait more than 60 days after you receive a billing statement reflecting fraudulent activity to make a report, you risk unlimited loss. For example, if you do not file a timely report on the theft of the cards, you could lose not only all of the money in the account, but also be held liable for the amount of overdraft protection you are granted. You must report unauthorized use, loss, or theft of the cards within 60 days of the mailing of your card statement or face unlimited loss. You are liable for charges made between the date of loss and the date the loss was reported. If the thief only uses your account number and not the card itself, however, you will not be held accountable for those charges.
Protecting Your Cards
To protect yourself against fraudulent use of your cards, you should know where they are at all times and keep them safe and secure. If your card requires a password or personal identification number (PIN), don’t write the number down so the thieves will get the code along with your cards. Do not use your address, birth date, phone or Social Security number as the PIN. Commit the pass code to memory and don’t share the information with anyone.
In addition, the following suggestions may help you protect your credit card and ATM or debit card accounts.
For Credit and ATM or Debit Cards:
* Do not reveal your account number over the phone unless you know you're dealing with a reputable company.
* Never put your account number on the outside of an envelope or on a postcard.
* Draw a line through blank spaces on charge or debit slips above the total so the amount cannot be changed.
* Don't sign a blank charge or debit slip.
* Tear up carbons and save your receipts to check against your monthly statements.
* Cut up old cards - cutting through the account number - before disposing of them.
* Open monthly statements promptly and compare them with your receipts. Report mistakes or discrepancies as soon as possible to the special address listed on your statement for inquiries. (For more information on the federal laws regarding FCBA and EFTA, click here)
* Keep a record - in a safe place separate from your cards - of your account numbers, expiration dates, and the telephone numbers of each card issuer so you can report a loss quickly.
* Carry with you only those cards that you anticipate you'll need.
For ATM or debit cards:
* Don't carry your PIN in your wallet or purse or write it on your ATM or debit card.
* Never write your PIN on the outside of a deposit slip, an envelope, or other papers that could be easily lost or seen.
* Carefully check ATM or debit card transactions before you enter the PIN or before you sign the receipt; the funds for this item will be fairly quickly transferred out of your checking or other deposit account.
* Periodically check your account activity. This is particularly important if you bank online. Compare the current balance and recent withdrawals or transfers to those you've recorded, including your current ATM and debit card withdrawals and purchases and your recent checks. If you notice transactions you didn't make, or if your balance has dropped suddenly without activity by you, immediately report the problem to your card issuer. Someone may have co-opted your account information to commit fraud.
Paying For A Registration Service
There are service providers who, for an annual fee, will contact all of your credit card and ATM bank card issuers in the case of theft or loss of your cards. This service will notify the issuers and request new cards for you, but other than allowing you to make one phone call and saving you from making numerous phone calls yourself, you do not need this service.
The FCBA and the EFTA allows you to contact your card issuers’ customer service department directly to notify them of the theft, loss or unauthorized use of your cards. If however, you would enjoy the convenience of a notification service to make the calls for you, be sure to compare the companies’ offer versus the fees they charge. Be sure your card issuer will work with such a service and find out if the service pays any fees if they fail to notify the card company in a timely manner and you incur charges on your card.
If you decide to purchase service from a registration company, compare offers. Carefully read the contract to determine the company's obligations and your liability. For example, will the company reimburse you if it fails to notify card issuers promptly once you've called in the loss to the service? If not, you could be liable for unauthorized charges or transfers.
Many people find it easy and convenient to use credit cards and ATM or debit cards. The Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) offer procedures for you to use if your cards are lost or stolen.
Limiting Your Financial Loss
It is faster and easier to process financial transactions today than ever before. Thanks to the electronic age, check cards, debit cards, and ATM cards give us instant access to funds on deposit at the local bank or a financial institution miles away. This also provides an avenue of opportunity for thieves and scam artists to rapidly deplete our financial reserves as well.
There are laws in place that provide a measure of protection from total financial ruination, but you need to be aware of your rights and responsibilities should your cards be stolen or appropriated for mischief. The Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) are two laws implemented on a federal level that can assist individuals targeted by the criminal element. For the laws to work properly, however, you need to invoke the protective measures by doing certain things if your cards are lost or stolen such as reporting the loss or theft promptly to the issuers.
Limit Your Financial Loss
As soon as you discover the loss or possible theft of your credit cards and your ATM or debit cards you must immediately notify the companies that issued the cards so they will have that fact on record and can monitor the cards for unusual activities. You can usually find toll-free numbers for the 24 hour help line on the back of the card or on your billing statement. It is a good idea to make a list of your cards, along with the account identification and the toll-free numbers, for reporting their loss. When you travel be sure to keep this information separate from the cards so you will have access to the information should you have a need to make a report while away from home.
Keep a record of the companies you notified. Follow up the phone call with a letter that includes all of the pertinent information such as account number, when you noticed your card was missing, and the date you first reported the loss.
As a side note, you might want to check your homeowner’s insurance policy to see if it covers the liability amount you are responsible for in the case of theft. If you do not currently have such coverage, you might want to contact your insurer to include this protection in your policy.
Under the Credit Card Loss or Fraudulent Charges (FCBA) act, the maximum liability for illegal use of your credit card is $50 per card. If you report the loss before any unauthorized charges are posted you cannot be held liable for any of the charges. If the charges are made using your account number, but not the card itself, you will not be held responsible for any of the charges. The FCBA specifically says the card issuer cannot hold you responsible for any unauthorized charges and limits your loss to $50 of the charges made on the cards prior to you reporting them lost or stolen.
You should always review your card billing statements for errors, but following the loss or theft of the cards you should be even more diligent. If you notice anything amiss in the statement, send a letter to the card issuer along with a description of the questionable charge. Remind them of the phone call you made and the letter you previously sent notifying them of the loss or theft of the cards. There is usually a separate address on the statement to which you will direct billing errors. Do not send the letter along with your payment unless you are directed to do so by the card company.
The Electronic Fraudulent Transfer Act (EFTA) also protects you from fraudulent use of your bankcards. Federal protection from loss due to unauthorized use of your ATM or debit card depends on how quickly you report the loss. For example, if you report the loss before the card is used, the EFTA protects you from any loss. If the report is made within two business days after noticing the loss you will not be responsible for more than $50 on each card.
If you fail to make a report within two business days after you discover the loss, you could be held responsible for up to $500. If you wait more than 60 days after you receive a billing statement reflecting fraudulent activity to make a report, you risk unlimited loss. For example, if you do not file a timely report on the theft of the cards, you could lose not only all of the money in the account, but also be held liable for the amount of overdraft protection you are granted. You must report unauthorized use, loss, or theft of the cards within 60 days of the mailing of your card statement or face unlimited loss. You are liable for charges made between the date of loss and the date the loss was reported. If the thief only uses your account number and not the card itself, however, you will not be held accountable for those charges.
Protecting Your Cards
To protect yourself against fraudulent use of your cards, you should know where they are at all times and keep them safe and secure. If your card requires a password or personal identification number (PIN), don’t write the number down so the thieves will get the code along with your cards. Do not use your address, birth date, phone or Social Security number as the PIN. Commit the pass code to memory and don’t share the information with anyone.
In addition, the following suggestions may help you protect your credit card and ATM or debit card accounts.
For Credit and ATM or Debit Cards:
* Do not reveal your account number over the phone unless you know you're dealing with a reputable company.
* Never put your account number on the outside of an envelope or on a postcard.
* Draw a line through blank spaces on charge or debit slips above the total so the amount cannot be changed.
* Don't sign a blank charge or debit slip.
* Tear up carbons and save your receipts to check against your monthly statements.
* Cut up old cards - cutting through the account number - before disposing of them.
* Open monthly statements promptly and compare them with your receipts. Report mistakes or discrepancies as soon as possible to the special address listed on your statement for inquiries. (For more information on the federal laws regarding FCBA and EFTA, click here)
* Keep a record - in a safe place separate from your cards - of your account numbers, expiration dates, and the telephone numbers of each card issuer so you can report a loss quickly.
* Carry with you only those cards that you anticipate you'll need.
For ATM or debit cards:
* Don't carry your PIN in your wallet or purse or write it on your ATM or debit card.
* Never write your PIN on the outside of a deposit slip, an envelope, or other papers that could be easily lost or seen.
* Carefully check ATM or debit card transactions before you enter the PIN or before you sign the receipt; the funds for this item will be fairly quickly transferred out of your checking or other deposit account.
* Periodically check your account activity. This is particularly important if you bank online. Compare the current balance and recent withdrawals or transfers to those you've recorded, including your current ATM and debit card withdrawals and purchases and your recent checks. If you notice transactions you didn't make, or if your balance has dropped suddenly without activity by you, immediately report the problem to your card issuer. Someone may have co-opted your account information to commit fraud.
Paying For A Registration Service
There are service providers who, for an annual fee, will contact all of your credit card and ATM bank card issuers in the case of theft or loss of your cards. This service will notify the issuers and request new cards for you, but other than allowing you to make one phone call and saving you from making numerous phone calls yourself, you do not need this service.
The FCBA and the EFTA allows you to contact your card issuers’ customer service department directly to notify them of the theft, loss or unauthorized use of your cards. If however, you would enjoy the convenience of a notification service to make the calls for you, be sure to compare the companies’ offer versus the fees they charge. Be sure your card issuer will work with such a service and find out if the service pays any fees if they fail to notify the card company in a timely manner and you incur charges on your card.
If you decide to purchase service from a registration company, compare offers. Carefully read the contract to determine the company's obligations and your liability. For example, will the company reimburse you if it fails to notify card issuers promptly once you've called in the loss to the service? If not, you could be liable for unauthorized charges or transfers.
Credit Card Debt and Interest
Credit card debt is one of the leading cause for needing to file for bankruptcy or take out mortgage loans on your home or other drastic measures. Studies indicate that credit card debt is slowly making a consumers financial situation bad or worse than ever before, and can also cause psychological depression and contribute to lower GPA's and increased substance abuse among college students. Credit card debt can build up quickly, especially if you have more than one card and a habit of charging everything.
Interest
The interest is the money paid on a balance to a lender by the borrower, which is to be paid every month, if you roll over your balance from month to month. Interest doesn't usually go down on its own, and when only minimum payments are made your balance can grow to un-manageable amounts. If you are late on a payment your interest rates can increase to 35 percent, making it very hard to pay off balances. With interest rates still on the rise, there's no better time to take a good close look at your finances.
Payment
Debt, especially credit card debt can accumulate very fast and many people soon find themselves barely able to even make the minimum payments. Remember if you are late on only one payment, your rate could increase drastically. If you are not good at remembering payments, it's wise to set up direct debits to pay your credit card bills. It's always best to control your spending and try to pay more than the required minimum payment whenever possible.
The main problem with credit cards is that they make it very easy for you to spend money. The most important step take to reduce credit card debt is to not use your credit card for every little thing, use cash whenever possible. Studies show credit card debt is higher for males than female debtors, and even higher for joint accounts. The problem with carrying credit card debt is that the interest on the card will typically accrue much quicker when you only make minimum payments.
Interest
The interest is the money paid on a balance to a lender by the borrower, which is to be paid every month, if you roll over your balance from month to month. Interest doesn't usually go down on its own, and when only minimum payments are made your balance can grow to un-manageable amounts. If you are late on a payment your interest rates can increase to 35 percent, making it very hard to pay off balances. With interest rates still on the rise, there's no better time to take a good close look at your finances.
Payment
Debt, especially credit card debt can accumulate very fast and many people soon find themselves barely able to even make the minimum payments. Remember if you are late on only one payment, your rate could increase drastically. If you are not good at remembering payments, it's wise to set up direct debits to pay your credit card bills. It's always best to control your spending and try to pay more than the required minimum payment whenever possible.
The main problem with credit cards is that they make it very easy for you to spend money. The most important step take to reduce credit card debt is to not use your credit card for every little thing, use cash whenever possible. Studies show credit card debt is higher for males than female debtors, and even higher for joint accounts. The problem with carrying credit card debt is that the interest on the card will typically accrue much quicker when you only make minimum payments.
Building An Emergency Fund - A Vital Part of Financial Planning
None of us have the ability to foresee the future or predict the hurdles which lie ahead of us. This makes building an emergency fund a financial priority. Building an emergency fund is healthy for your financial well being, since you’re rarely given advance notice of a setback or an accident which will keep you out of work for an extended period. It is also a safety net that can save you from bankruptcy or severe financial hardships in the event of an unexpected change in your income or expenses.
Housing a small rainy day fund should be a vital part of an individual’s financial goals. 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 building 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 dependants 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!
Housing a small rainy day fund should be a vital part of an individual’s financial goals. 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 building 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 dependants 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!
Bankruptcy Attorney: Questions To Ask
If you have tried every way imaginable to avoid bankruptcy but find that you have no other way out of the situation, the first step you should take before filing is to consult with a bankruptcy attorney. A bankruptcy attorney can be hired or appointed by the court systems to help you through the court proceedings. If you decide to select your own attorney, make sure to select someone with previous experience in bankruptcy law, preferably someone who works specifically with bankruptcy.
No matter which bankruptcy attorney you select, you should always be prepared to ask the attorney questions regarding your own case. Here is a list of questions you should always ask your attorney to make yourself more aware of your bankruptcy proceedings:
* What type of bankruptcy is right for me?
Keep in mind that the Federal court system in the United States has eight different types of bankruptcy filing available. Of course the two most popular are Chapter 13 and Chapter 7, but there are a variety of different details and rules that apply to each type of filing. A good bankruptcy attorney will be able to sift through your financial difficulties and recommend the best type of bankruptcy for you.
* How do I file for bankruptcy?
Filing for bankruptcy will need to be done in the state where you currently live. If you plan to remain represented by a bankruptcy attorney, their legal staff can help to prepare all of the paperwork that is necessary to present to the court system. If you simply want to use the bankruptcy attorney for a consultation, make sure you don’t leave the attorney’s office without the necessary paperwork to begin the bankruptcy process.
* What type of fees will I owe?
This is important to ask in regards to your bankruptcy attorney as well as the court system. Most bankruptcy attorneys will give a free consultation but any remaining time on the proceeding or in court will cost a fee. Some attorneys charge by the hour while others charge a flat fee for bankruptcy services. As well, the court systems usually charge a court fee connected with filing the case, administrative charges and extra Chapter 7 fees to pay a trustee in charge of the bankrupt account.
* Where do I go to file my bankruptcy claim?
Bankruptcy cases are handled by the federal court systems in every state. This usually means that the bankrupt party will need to give the bankruptcy paperwork to the state courthouse, usually in a state’s capitol city. Your bankruptcy attorney should know the address and rules regarding whether or not paperwork can be sent by mail or if paperwork needs to be given in person.
* What happens after filing for bankruptcy?
Immediately after filing for bankruptcy, the court system will send out notification to creditors of the pending bankruptcy case. From this point on, creditors are considered to have a "restraining order" by the debtor and are not allowed to contact the debtor requesting payment. Depending on the type of bankruptcy, a hearing will be scheduled and deadlines will be set for creditors to file a claim and attend the hearing. Of course, all of the proceedings from here are dependent on the type of bankruptcy filed, so it is important to be in contact with your bankruptcy attorney who can more readily answer these questions.
No matter which bankruptcy attorney you select, you should always be prepared to ask the attorney questions regarding your own case. Here is a list of questions you should always ask your attorney to make yourself more aware of your bankruptcy proceedings:
* What type of bankruptcy is right for me?
Keep in mind that the Federal court system in the United States has eight different types of bankruptcy filing available. Of course the two most popular are Chapter 13 and Chapter 7, but there are a variety of different details and rules that apply to each type of filing. A good bankruptcy attorney will be able to sift through your financial difficulties and recommend the best type of bankruptcy for you.
* How do I file for bankruptcy?
Filing for bankruptcy will need to be done in the state where you currently live. If you plan to remain represented by a bankruptcy attorney, their legal staff can help to prepare all of the paperwork that is necessary to present to the court system. If you simply want to use the bankruptcy attorney for a consultation, make sure you don’t leave the attorney’s office without the necessary paperwork to begin the bankruptcy process.
* What type of fees will I owe?
This is important to ask in regards to your bankruptcy attorney as well as the court system. Most bankruptcy attorneys will give a free consultation but any remaining time on the proceeding or in court will cost a fee. Some attorneys charge by the hour while others charge a flat fee for bankruptcy services. As well, the court systems usually charge a court fee connected with filing the case, administrative charges and extra Chapter 7 fees to pay a trustee in charge of the bankrupt account.
* Where do I go to file my bankruptcy claim?
Bankruptcy cases are handled by the federal court systems in every state. This usually means that the bankrupt party will need to give the bankruptcy paperwork to the state courthouse, usually in a state’s capitol city. Your bankruptcy attorney should know the address and rules regarding whether or not paperwork can be sent by mail or if paperwork needs to be given in person.
* What happens after filing for bankruptcy?
Immediately after filing for bankruptcy, the court system will send out notification to creditors of the pending bankruptcy case. From this point on, creditors are considered to have a "restraining order" by the debtor and are not allowed to contact the debtor requesting payment. Depending on the type of bankruptcy, a hearing will be scheduled and deadlines will be set for creditors to file a claim and attend the hearing. Of course, all of the proceedings from here are dependent on the type of bankruptcy filed, so it is important to be in contact with your bankruptcy attorney who can more readily answer these questions.
A Guide To Accounting Software
Computer software that helps in processing various financial transactions, recording them, and presenting them in the form of a report is know as accounting software. There are several functional modules in accounting software.
Organizations operating on a large scale prefer to develop such software within their organizations so that it suits their needs. However, there is no need to worry for the small-scale or middle-level entrepreneur who cannot afford to develop in-house software. There is no dearth of accounting software on the market. The price range is wide, and most of the good accounting software is easily affordable for even a sole proprietor. They are easy to operate and one does not need to be a computer genius. This software generally comes with “how to" information. They are quite user friendly. In fact, you might not feel the need to keep paying your part-time accountant once you start using accounting software.
There is also complex accounting software that is generally used by the government and large organizations. Such complex software can be operated by trained professionals only. One of the major benefits of accounting software is that it can not only help the organizations in computing their income, revenues, profits, or losses over a period of time, but they can also help the individuals in computing their tax liabilities. This is especially true if they have multiple sources of income.
A number of firms also provide accounting software online. You can easily download it by paying a nominal fee. Some websites also offer such software for free. It is advisable that once you have decided to use accounting software, the first thing you should do is to use it on a trial basis and check for loopholes or any problems that might be there.
Organizations operating on a large scale prefer to develop such software within their organizations so that it suits their needs. However, there is no need to worry for the small-scale or middle-level entrepreneur who cannot afford to develop in-house software. There is no dearth of accounting software on the market. The price range is wide, and most of the good accounting software is easily affordable for even a sole proprietor. They are easy to operate and one does not need to be a computer genius. This software generally comes with “how to" information. They are quite user friendly. In fact, you might not feel the need to keep paying your part-time accountant once you start using accounting software.
There is also complex accounting software that is generally used by the government and large organizations. Such complex software can be operated by trained professionals only. One of the major benefits of accounting software is that it can not only help the organizations in computing their income, revenues, profits, or losses over a period of time, but they can also help the individuals in computing their tax liabilities. This is especially true if they have multiple sources of income.
A number of firms also provide accounting software online. You can easily download it by paying a nominal fee. Some websites also offer such software for free. It is advisable that once you have decided to use accounting software, the first thing you should do is to use it on a trial basis and check for loopholes or any problems that might be there.
Friday, November 28, 2008
Ways To Pay For Your Next Holiday Away
Any time of year can be the right time to plan your next vacation-and how to pay for it. Here are some tips for saving or earning extra money to help make this year's vacation special:
• Set up a vacation "piggy bank" and contribute regularly. Make coffee at home rather than buying it on your way to work, and bank the difference. When the kids break a house rule, deduct $1 from their allowances and set it aside for vacation.
• Arrange for a portion of your paycheck to be deposited automatically into a vacation savings account. An increasing number of employers offer direct deposits that can be split among different accounts.
• Book your vacation plans early. Most experts encourage families to make reservations for flights or hotels early, before seats and rooms start to fill up and prices rise. Also, look for special summer deals that many popular destinations offer on their Web sites.
• Look for additional sources of income. For example, you could become a direct selling representative. Direct selling involves the sale of products and services in the home or workplace (think Avon or Pampered Chef). A wide variety of products and services are sold this way, from cosmetics and clothing to pet supplies and cookware.
According to Amy Robinson at the Direct Selling Association (DSA), direct selling companies sell $30 billion worth of goods and services annually.
"Direct selling is a growing business and a flexible, family-friendly way to earn extra money for a family vacation," Robinson said.
• Set up a vacation "piggy bank" and contribute regularly. Make coffee at home rather than buying it on your way to work, and bank the difference. When the kids break a house rule, deduct $1 from their allowances and set it aside for vacation.
• Arrange for a portion of your paycheck to be deposited automatically into a vacation savings account. An increasing number of employers offer direct deposits that can be split among different accounts.
• Book your vacation plans early. Most experts encourage families to make reservations for flights or hotels early, before seats and rooms start to fill up and prices rise. Also, look for special summer deals that many popular destinations offer on their Web sites.
• Look for additional sources of income. For example, you could become a direct selling representative. Direct selling involves the sale of products and services in the home or workplace (think Avon or Pampered Chef). A wide variety of products and services are sold this way, from cosmetics and clothing to pet supplies and cookware.
According to Amy Robinson at the Direct Selling Association (DSA), direct selling companies sell $30 billion worth of goods and services annually.
"Direct selling is a growing business and a flexible, family-friendly way to earn extra money for a family vacation," Robinson said.
Top 5 ways To Improve Your Credit
Your credit rating is extremely important to your financial future, and those with a low credit rating will often find it difficult to get any sort of finance until their credit improves. This could affect your abilities to get anything from a credit card or loan to a mortgage or car finance, and as a nation that relies heavily on credit this could spell disaster for many.
Your credit rating can be adversely affected in a number of ways. Most commonly is failure to make bill and finance repayments on time or defaulting on payments altogether. However, other factors such as association with those with bad credit or being the victim of identity theft can also affect your credit rating – as can a simple human or computer error by credit reporting agencies or agencies that register details with these companies.
There are a number of ways in which you can help to improve your credit or maintain good credit. This includes:
1. Always maintain timely repayments on bills and financial obligations, as this will help to maintain good credit. If you already have a tarnished credit history or rating make sure that you focus on making all of your repayments on time and for the amount s requested to try and start improving your credit.
2. Keep a check on your credit report. This can easily be ordered from the credit reporting agencies. Monitoring this will enable you to check that no errors have been made that could be affecting your credit rating, and will enable you to identify any cases of fraudulent activity that could also be affecting your credit.
3. If you already have poor credit consider taking out a credit card or loan that caters for those with bad credit. By taking out a bad credit loan or credit card, and making sure that you make the repayments on time and for the amounts requested, you can start to slowly bring your credit back up.
4. Focus on paying off your debts. If you have a high level of debt then you run the risk of falling behind with repayments and adversely affecting your credit. By clearing the debt as quickly as possible you can reduce this risk. If you already have bad credit and are in debt, you could see improvements in your credit rating by clearing the debts as quickly as possible and ensuring that you pay at least the requested amounts on loans and bills each month.
5. Look out for scams that offer fast solutions to repairing credit. These usually charge a fee and offer only a temporary reprieve by questioning any factors that may be affecting your credit. The best way to repair your credit is to be sensible and responsible about repaying your debts and paying your bills, and although it may take some time this is the most effective long term solution to credit repair.
Your credit rating can be adversely affected in a number of ways. Most commonly is failure to make bill and finance repayments on time or defaulting on payments altogether. However, other factors such as association with those with bad credit or being the victim of identity theft can also affect your credit rating – as can a simple human or computer error by credit reporting agencies or agencies that register details with these companies.
There are a number of ways in which you can help to improve your credit or maintain good credit. This includes:
1. Always maintain timely repayments on bills and financial obligations, as this will help to maintain good credit. If you already have a tarnished credit history or rating make sure that you focus on making all of your repayments on time and for the amount s requested to try and start improving your credit.
2. Keep a check on your credit report. This can easily be ordered from the credit reporting agencies. Monitoring this will enable you to check that no errors have been made that could be affecting your credit rating, and will enable you to identify any cases of fraudulent activity that could also be affecting your credit.
3. If you already have poor credit consider taking out a credit card or loan that caters for those with bad credit. By taking out a bad credit loan or credit card, and making sure that you make the repayments on time and for the amounts requested, you can start to slowly bring your credit back up.
4. Focus on paying off your debts. If you have a high level of debt then you run the risk of falling behind with repayments and adversely affecting your credit. By clearing the debt as quickly as possible you can reduce this risk. If you already have bad credit and are in debt, you could see improvements in your credit rating by clearing the debts as quickly as possible and ensuring that you pay at least the requested amounts on loans and bills each month.
5. Look out for scams that offer fast solutions to repairing credit. These usually charge a fee and offer only a temporary reprieve by questioning any factors that may be affecting your credit. The best way to repair your credit is to be sensible and responsible about repaying your debts and paying your bills, and although it may take some time this is the most effective long term solution to credit repair.
The IRS Owes You Money If You Have Paid Long Distance Phone Taxes
The IRS has decided to give up the fight on an ongoing legal issue regarding taxes it has collected on long distance telephone services. Here is the scoop.
The IRS Owes You Money If You Have Paid Long Distance Phone Taxes
Every one of us pays for some form of long distance telephone service. The more you use the service, the more you start hunting for better rates. Whatever choice you make, however, you are always stuck paying a federal tax on the bill. For those of you with large long distance phone bills, this tax can add up quickly given the fact it is calculated at three percent of your total bill.
The tax in question is known as the federal excise tax on long distance telephone service. It was created in 1898. Yes, this tax arose well over one hundred years ago. As you might image, a few people started to wonder how a tax established in 1898 could possibly apply today, particularly given the advancement of telephone technologies. Turns out it doesn’t apply! Given a chance to review the situation, five appellate courts have ruled the tax invalid.
After contemplating the situation, the IRS has decided not to challenge the legal rulings. Instead, it has voluntarily agreed to issue credits or refunds for the excise taxes paid the past three years. Specifically, you will be able to claim a refund of all taxes paid from February 28, 2003 till the date the IRS stopped collecting them.
To collect the refunds, the IRS will create a new box on all 1040 filing forms for the 2006 tax year. In practical terms, this means you will be able to check a box and get a refund when you prepare your 2006 tax return in 2007. The IRS will pay interest on these funds.
It should be noted the refund is applicable only to the long distance excise tax. You still must pay local service taxes and the refund does not apply to taxes collected by states and such. Still, any refund is a good refund in my opinion.
The IRS Owes You Money If You Have Paid Long Distance Phone Taxes
Every one of us pays for some form of long distance telephone service. The more you use the service, the more you start hunting for better rates. Whatever choice you make, however, you are always stuck paying a federal tax on the bill. For those of you with large long distance phone bills, this tax can add up quickly given the fact it is calculated at three percent of your total bill.
The tax in question is known as the federal excise tax on long distance telephone service. It was created in 1898. Yes, this tax arose well over one hundred years ago. As you might image, a few people started to wonder how a tax established in 1898 could possibly apply today, particularly given the advancement of telephone technologies. Turns out it doesn’t apply! Given a chance to review the situation, five appellate courts have ruled the tax invalid.
After contemplating the situation, the IRS has decided not to challenge the legal rulings. Instead, it has voluntarily agreed to issue credits or refunds for the excise taxes paid the past three years. Specifically, you will be able to claim a refund of all taxes paid from February 28, 2003 till the date the IRS stopped collecting them.
To collect the refunds, the IRS will create a new box on all 1040 filing forms for the 2006 tax year. In practical terms, this means you will be able to check a box and get a refund when you prepare your 2006 tax return in 2007. The IRS will pay interest on these funds.
It should be noted the refund is applicable only to the long distance excise tax. You still must pay local service taxes and the refund does not apply to taxes collected by states and such. Still, any refund is a good refund in my opinion.
The Benefits Of Saving For Your Child's School Finance
Defining your savings goals is the first thing to do before you invest, especially when that investment will have an impact on your child’s future.
It is after-all your child’s future that you are investing in--and school finance cannot be avoided, as babies will grow into adults who need to be given the best opportunities we can offer as parents.
The best advice that any parent can get is to start saving early. College tuition fees can cause a strain on your family's budget and lifestyle. You need to have a goal to keep you motivated to save. And what better motivation is there than knowing that the money you save will finance your child's education.
Normally the best stage to start saving for your child’s finance towards college tuition is at birth. If, however, you have not started, then the time to start saving is now. It is never too late to start saving.
The sooner you start saving, the more time there’ll be for compound interest to build up into a nice college fund for your child. Remember that each child should get his or her school finance savings fund.
You also need to decide the amount you intend to save by the time that your child reaches college age. There are many options available for you to choose from when it dollar amount. This means that you calculate the projected cost of public college tuition by the time your child is ready for college.
The other commonly used method, which many parents prefer, involves devoting a fixed percentage of income to their child's future college costs. The idea is this: whatever you do, you have to have a defined goal. You should save as much as you can, whether it be a large amount, like several hundred dollars a month or a more modest amount, such as $25 to $50 each month.
A college education is an investment in the future of your child. If you truly want to see your child succeed, as all parents do, what could possibly be a better investment?
It is after-all your child’s future that you are investing in--and school finance cannot be avoided, as babies will grow into adults who need to be given the best opportunities we can offer as parents.
The best advice that any parent can get is to start saving early. College tuition fees can cause a strain on your family's budget and lifestyle. You need to have a goal to keep you motivated to save. And what better motivation is there than knowing that the money you save will finance your child's education.
Normally the best stage to start saving for your child’s finance towards college tuition is at birth. If, however, you have not started, then the time to start saving is now. It is never too late to start saving.
The sooner you start saving, the more time there’ll be for compound interest to build up into a nice college fund for your child. Remember that each child should get his or her school finance savings fund.
You also need to decide the amount you intend to save by the time that your child reaches college age. There are many options available for you to choose from when it dollar amount. This means that you calculate the projected cost of public college tuition by the time your child is ready for college.
The other commonly used method, which many parents prefer, involves devoting a fixed percentage of income to their child's future college costs. The idea is this: whatever you do, you have to have a defined goal. You should save as much as you can, whether it be a large amount, like several hundred dollars a month or a more modest amount, such as $25 to $50 each month.
A college education is an investment in the future of your child. If you truly want to see your child succeed, as all parents do, what could possibly be a better investment?
Saving Money On Magazine Subscriptions
If you are interested in subscribing to a magazine or different magazines, you may be wondering how you can fit the costs of subscribing to a magazine or magazines into your overall budget. In this day and age, many people find it very difficult to make ends meet, to maintain a wise budget. They simply do not have a great deal of discretionary money to be used on such things as magazine subscriptions.
With that said, there are some ways in which you can save money on magazine subscriptions. One of the easiest ways you can save money on magazine subscriptions is through the Internet and World Wide Web. There are now many websites in operation that offer magazine subscriptions at reduced costs.
In addition to websites that market magazine subscriptions at reduced costs, there are also Internet websites that market magazine package deals. In other words, you can obtain a number of different magazine subscriptions that you might not otherwise be able to afford for a low cost.
In the brick and mortar world, you can stop by the local bookseller and visit the magazine section. By flipping through magazines, you can find subscription cards that offer reduced costs for subscriptions to these publications. For example, they might offer upwards to 75% off the regular price for these magazines.
Also keep in mind that by subscribing to a magazine for an extended period of time, the publication likely will knock a good deal of money off of the overall subscription cost. For example, you can save a great deal of money by subscribing to a magazine for a period of three years as opposed to a single year subscription.
Finally, there are some charities that sell magazine subscriptions to raise money for their work and causes. In this regard, these magazines are made available to people at a reduced cost. In addition, a part of what you pay for the subscription is donated to the charity in order to allow it to further its good works.
When all is said and done, by taking the time to shop around, you can save money on magazine subscriptions. You will be able to work the costs of receiving magazines into your overall budget. By keeping an open mind as to where to look for reduced costs magazine subscriptions you will be able to have the publications that you want at a price that you truly can afford.
With that said, there are some ways in which you can save money on magazine subscriptions. One of the easiest ways you can save money on magazine subscriptions is through the Internet and World Wide Web. There are now many websites in operation that offer magazine subscriptions at reduced costs.
In addition to websites that market magazine subscriptions at reduced costs, there are also Internet websites that market magazine package deals. In other words, you can obtain a number of different magazine subscriptions that you might not otherwise be able to afford for a low cost.
In the brick and mortar world, you can stop by the local bookseller and visit the magazine section. By flipping through magazines, you can find subscription cards that offer reduced costs for subscriptions to these publications. For example, they might offer upwards to 75% off the regular price for these magazines.
Also keep in mind that by subscribing to a magazine for an extended period of time, the publication likely will knock a good deal of money off of the overall subscription cost. For example, you can save a great deal of money by subscribing to a magazine for a period of three years as opposed to a single year subscription.
Finally, there are some charities that sell magazine subscriptions to raise money for their work and causes. In this regard, these magazines are made available to people at a reduced cost. In addition, a part of what you pay for the subscription is donated to the charity in order to allow it to further its good works.
When all is said and done, by taking the time to shop around, you can save money on magazine subscriptions. You will be able to work the costs of receiving magazines into your overall budget. By keeping an open mind as to where to look for reduced costs magazine subscriptions you will be able to have the publications that you want at a price that you truly can afford.
Retirement Calculator: How Much Will It Cost You to Retire?
Many people have imagined a secured future by the time they have reached their retirement age.
However, only a few have truly worked out the estimated amount of that they need to hit the sack happily. This is because most people are not aware about the importance of using retirement calculators.
With retirement calculators, you can easily foresee the probable amount that you will earn by the time you retire. In this way, you can easily plan the necessary savings that you have to make to achieve your desired amount in the future.
Getting to know how much to save to arrive at your desired amount is easily computed on a yearly investment. From there, you can work towards a more achievable goal.
The computation, however, is greatly dependent on several factors. It does not necessarily mean that using retirement calculators will guarantee your future. Here is the list of the items that you have to consider when using retirement calculator:
1. Your present age and your desired retirement age
This will greatly affect the results in the retirement calculator. The available years from your current age up to your desired retirement age will determine the amount of savings you have to accumulate in order to reach your goal.
For instance, if you have lesser years to save, then your retirement calculator will tell you that to invest more money if you want to retire with considerable amount of disbursements.
2. Life expectancy
Your expected life expectancy will also affect the result in your calculator.
3. Inflation rate
4. Total Social Security Disbursements
5. Rate of ROI (return of investment)
These are just some of the probable factors that you have to consider when using retirement calculators. All of these things will have individual effects on the results. In the end, people tend to mix everything up and errors on computations are expected.
Financial experts recommend some feasible solutions to avoid possible confusions and errors in using the retirement calculator. Here’s how:
1. Be careful in choosing factors
Some people tend to choose some factors when using retirement calculator. Any considerable errors in the selection will constitute clear negative effects on the results.
Hence, it is important to be cautious in choosing a particular factor. Try to give some allowances as well.
For instance, if you will be using the “rate of return of investment,” it would be better if you will use a lower rate than what the current or even the best possible rate available. Things like this will not put your computation in a negative light.
2. Do not stop at a single computation
Experts recommend that you evaluate the factors that you have used during your first computation. Keep in mind that these factors may vary as the time pass by. Hence, it is best that you keep up with the flow.
3. Experiment
Do not stop from where you have started. In order to reach your desired retirement goal, it is best that you experiment on the variable factors that will greatly affect the results.
For example, inflation rate is highly changeable. Hence, experimenting on its different rates will provide you considerable low and high rates.
4. Always seek a professional
Do not depend on the tool alone. It is always important to seek the help of a professional. In this way, you can understand the use of retirement calculator better.
Knowing its pros and cons will help you understand the viability of retirement calculator. In turn, securing your future will be relatively easy.
However, only a few have truly worked out the estimated amount of that they need to hit the sack happily. This is because most people are not aware about the importance of using retirement calculators.
With retirement calculators, you can easily foresee the probable amount that you will earn by the time you retire. In this way, you can easily plan the necessary savings that you have to make to achieve your desired amount in the future.
Getting to know how much to save to arrive at your desired amount is easily computed on a yearly investment. From there, you can work towards a more achievable goal.
The computation, however, is greatly dependent on several factors. It does not necessarily mean that using retirement calculators will guarantee your future. Here is the list of the items that you have to consider when using retirement calculator:
1. Your present age and your desired retirement age
This will greatly affect the results in the retirement calculator. The available years from your current age up to your desired retirement age will determine the amount of savings you have to accumulate in order to reach your goal.
For instance, if you have lesser years to save, then your retirement calculator will tell you that to invest more money if you want to retire with considerable amount of disbursements.
2. Life expectancy
Your expected life expectancy will also affect the result in your calculator.
3. Inflation rate
4. Total Social Security Disbursements
5. Rate of ROI (return of investment)
These are just some of the probable factors that you have to consider when using retirement calculators. All of these things will have individual effects on the results. In the end, people tend to mix everything up and errors on computations are expected.
Financial experts recommend some feasible solutions to avoid possible confusions and errors in using the retirement calculator. Here’s how:
1. Be careful in choosing factors
Some people tend to choose some factors when using retirement calculator. Any considerable errors in the selection will constitute clear negative effects on the results.
Hence, it is important to be cautious in choosing a particular factor. Try to give some allowances as well.
For instance, if you will be using the “rate of return of investment,” it would be better if you will use a lower rate than what the current or even the best possible rate available. Things like this will not put your computation in a negative light.
2. Do not stop at a single computation
Experts recommend that you evaluate the factors that you have used during your first computation. Keep in mind that these factors may vary as the time pass by. Hence, it is best that you keep up with the flow.
3. Experiment
Do not stop from where you have started. In order to reach your desired retirement goal, it is best that you experiment on the variable factors that will greatly affect the results.
For example, inflation rate is highly changeable. Hence, experimenting on its different rates will provide you considerable low and high rates.
4. Always seek a professional
Do not depend on the tool alone. It is always important to seek the help of a professional. In this way, you can understand the use of retirement calculator better.
Knowing its pros and cons will help you understand the viability of retirement calculator. In turn, securing your future will be relatively easy.
Online Banking Made Easy
Here's a really simple way... to have your banking handled with no muss, no fuss... on the internet.
Traditionally you have been used to doing your banking by going in to a physical brick and mortar building and taking care of whatever banking business you had to take care of.
Whether it was opening an account, checking balances, depositing a paycheck, taking money out for living expenses, applying for a loan, paying a bill, moving money around from account to another or whatever.
Of course you had to make a special point of putting it into your schedule and arranging other tasks around it to accommodate your planned trip to the bank. Well, those days are over.
With the popularity of the internet during the last 5 years banking has never been easier or more convenient than it is today.
With the internet and online banking you can access your bank 24/7. Or as close to 24/7 as can be since there is always the time when the bank's website is not accessible due to website maintenance.
And you don't even have to get dressed to do your banking. I find this benefit very useful in the cold winter months when I can just sit in the warmth of my home and do my banking activities through my computer.
Nowadays, most large national banks, regional banks and even smaller local banks and credit unions have some form of online banking for both the convenience of their customers and for their convenience as well.
By allowing you to access their bank and your banking account they don't have to pay for someone to attend to your needs and they save money. They can pass that savings on to you through higher interest rates on your money.
In fact there are virtual banks that exist today that do not have a brick and mortar existence and exist solely online. Because of the great savings that they enjoy with that arrangement they offer some of the highest banking interest rates I have seen.
Another great benefit of online banking that I have been taking advantage of is online bill paying.
In the old days when I had to pay a bill I took the bill, wrote out a check, put it in the envelope, put a stamp on the envelopeand put it in the mail, hoping that it arrived on time so I wouldn't be assessed a late fee.
Now I can just get on the internet and get on the website of the place where I am paying the bill, hit a few keys on the keyboard of my computer and the bill is paid, saving a stamp and a lot of time and worry about the reliability of snail mail.
Another great advantage of internet banking is the concept of direct deposit.
Using direct deposit your employer can now take your paycheck and automatically deposit the money in whatever banking account you designate. That way you don't have to worry about getting the money into the bank in time to pay your big bill coming up. Now having the money in the bank and the paying of the bill can be done electronically.
And now dealing with the IRS has been made somewhat easier with the arrival of internet banking.
Now you can file your return and if it turns out you owe Uncle Sam some money you can pay it electronically by submitting your banking information with your return. If the IRS owes you a refund they can send it to you using that same banking information. And, it is all done more speedily than it was in the old days using snail mail. If you are due a refund you will be very happy to get your money sooner.
As you proceed into the 21st century you can take advantage of the progress that the banking industry has experienced in the
last few years. You will find many ways to make what used to be
considered a drudge or a necessary evil into some thing that is
more pleasant and less time-consuming to deal with.
So if you haven't experienced online banking, give it a try. You'll probably like it!
Traditionally you have been used to doing your banking by going in to a physical brick and mortar building and taking care of whatever banking business you had to take care of.
Whether it was opening an account, checking balances, depositing a paycheck, taking money out for living expenses, applying for a loan, paying a bill, moving money around from account to another or whatever.
Of course you had to make a special point of putting it into your schedule and arranging other tasks around it to accommodate your planned trip to the bank. Well, those days are over.
With the popularity of the internet during the last 5 years banking has never been easier or more convenient than it is today.
With the internet and online banking you can access your bank 24/7. Or as close to 24/7 as can be since there is always the time when the bank's website is not accessible due to website maintenance.
And you don't even have to get dressed to do your banking. I find this benefit very useful in the cold winter months when I can just sit in the warmth of my home and do my banking activities through my computer.
Nowadays, most large national banks, regional banks and even smaller local banks and credit unions have some form of online banking for both the convenience of their customers and for their convenience as well.
By allowing you to access their bank and your banking account they don't have to pay for someone to attend to your needs and they save money. They can pass that savings on to you through higher interest rates on your money.
In fact there are virtual banks that exist today that do not have a brick and mortar existence and exist solely online. Because of the great savings that they enjoy with that arrangement they offer some of the highest banking interest rates I have seen.
Another great benefit of online banking that I have been taking advantage of is online bill paying.
In the old days when I had to pay a bill I took the bill, wrote out a check, put it in the envelope, put a stamp on the envelopeand put it in the mail, hoping that it arrived on time so I wouldn't be assessed a late fee.
Now I can just get on the internet and get on the website of the place where I am paying the bill, hit a few keys on the keyboard of my computer and the bill is paid, saving a stamp and a lot of time and worry about the reliability of snail mail.
Another great advantage of internet banking is the concept of direct deposit.
Using direct deposit your employer can now take your paycheck and automatically deposit the money in whatever banking account you designate. That way you don't have to worry about getting the money into the bank in time to pay your big bill coming up. Now having the money in the bank and the paying of the bill can be done electronically.
And now dealing with the IRS has been made somewhat easier with the arrival of internet banking.
Now you can file your return and if it turns out you owe Uncle Sam some money you can pay it electronically by submitting your banking information with your return. If the IRS owes you a refund they can send it to you using that same banking information. And, it is all done more speedily than it was in the old days using snail mail. If you are due a refund you will be very happy to get your money sooner.
As you proceed into the 21st century you can take advantage of the progress that the banking industry has experienced in the
last few years. You will find many ways to make what used to be
considered a drudge or a necessary evil into some thing that is
more pleasant and less time-consuming to deal with.
So if you haven't experienced online banking, give it a try. You'll probably like it!
Multiple Streams Of Income Are Key To Staying Afloat
In today’s society it is practically impossible to stay on top of bills, increasing gas prices and extraneous financial obligations with just one job. What’s more, it is becoming increasingly scary to rely on one stream of income because the economy is so shaky. Who knows when that one lifeline will falter? Many people are discovering that the way to stay afloat in today’s rapidly fluctuating market is by using multiple streams of income. This simply means drawing funding from various venues.
One venue that many people find convenient to their schedules and their lives is taking part in an Internet business. Since lots of people are only using their Internet businesses as one of several streams of income, they only do it on a part time basis. There are lots of opportunities on the Internet to earn multiple streams of income, including starting an ebay business, taking part in an affiliate program, making contacts for freelance work, and writing and selling an ebook. The flexibility of working a business on the Internet is valuable for many people who also work other jobs, and especially for those with loved ones who need to be taken care of.
Other off-the-web venues that people use as multiple streams of income include real estate, starting a small independently owned business, mail and phone-based freelance work, and childcare. Many of these businesses are owned and operated out of people’s homes, which is time effective for people who are multi-tasking.
If you are planning on using multiple streams of income to stay on top of your growing pile of bills, remember that it is important to think about your personal needs as well. Make sure that you still have enough time to sleep, eat, and spend quality time with loved ones. Time efficiency is very important, so think about cutting down on commuting by multi-tasking from home, or by commuting only to one job. Though more complicated than relying on one job alone, using multiple streams of income can be an effective way to ensure your financial stability.
One venue that many people find convenient to their schedules and their lives is taking part in an Internet business. Since lots of people are only using their Internet businesses as one of several streams of income, they only do it on a part time basis. There are lots of opportunities on the Internet to earn multiple streams of income, including starting an ebay business, taking part in an affiliate program, making contacts for freelance work, and writing and selling an ebook. The flexibility of working a business on the Internet is valuable for many people who also work other jobs, and especially for those with loved ones who need to be taken care of.
Other off-the-web venues that people use as multiple streams of income include real estate, starting a small independently owned business, mail and phone-based freelance work, and childcare. Many of these businesses are owned and operated out of people’s homes, which is time effective for people who are multi-tasking.
If you are planning on using multiple streams of income to stay on top of your growing pile of bills, remember that it is important to think about your personal needs as well. Make sure that you still have enough time to sleep, eat, and spend quality time with loved ones. Time efficiency is very important, so think about cutting down on commuting by multi-tasking from home, or by commuting only to one job. Though more complicated than relying on one job alone, using multiple streams of income can be an effective way to ensure your financial stability.
How to manage your checking account
Protect yourself against the possibility of writing bad checks.
The most important thing that you need to do in order to manage your checking account is simple: keep track of all of your transactions. This might be annoying if you end up writing a lot of small checks for small things, but in the end it will definitely be worth it. By writing down each check you write and the amount that they were for, you'll know exactly how much money you have to spend, how much you have spent, and whether or not you can afford what you are buying.
There are a lot of good reasons to know where all of your money is going. However, they are not the only reasons why you should learn how to manage your checking account. Let's say you are not keeping track of the amount of money that is in your checking account. You know that you are getting close to the end of your money, due to it being near the end of the month, but you're not entirely sure. Therefore, you write your last check - and it bounces. Bounced checks are not only embarrassing, but they will result in a lot of lost money for no reason other than that you were careless. First of all, most establishments will charge you extra fees for bounced checks - and may not allow you to write checks in the future. Second, most banks have hefty overdraft fees - and you don't want to waste your money paying those.
The next thing that you should do if you're trying to learn how to manage your checking account, is to try and make sure that you always have a few hundred dollar buffer in your account. This is not just to pad against overdraft fees and bounced checks, but can actually come in handy. For instance, it's always possible that there could be an emergency situation in which you need some extra money - in which case having extra dollars in your checking account could be a life saver.
When it comes to managing checking accounts, these are really the most important things that you should do. Always make sure that you have extra money in your account - and keep track of your expenses!
The most important thing that you need to do in order to manage your checking account is simple: keep track of all of your transactions. This might be annoying if you end up writing a lot of small checks for small things, but in the end it will definitely be worth it. By writing down each check you write and the amount that they were for, you'll know exactly how much money you have to spend, how much you have spent, and whether or not you can afford what you are buying.
There are a lot of good reasons to know where all of your money is going. However, they are not the only reasons why you should learn how to manage your checking account. Let's say you are not keeping track of the amount of money that is in your checking account. You know that you are getting close to the end of your money, due to it being near the end of the month, but you're not entirely sure. Therefore, you write your last check - and it bounces. Bounced checks are not only embarrassing, but they will result in a lot of lost money for no reason other than that you were careless. First of all, most establishments will charge you extra fees for bounced checks - and may not allow you to write checks in the future. Second, most banks have hefty overdraft fees - and you don't want to waste your money paying those.
The next thing that you should do if you're trying to learn how to manage your checking account, is to try and make sure that you always have a few hundred dollar buffer in your account. This is not just to pad against overdraft fees and bounced checks, but can actually come in handy. For instance, it's always possible that there could be an emergency situation in which you need some extra money - in which case having extra dollars in your checking account could be a life saver.
When it comes to managing checking accounts, these are really the most important things that you should do. Always make sure that you have extra money in your account - and keep track of your expenses!
Getting A Credit Card With Bad Or No Credit
So you have decided that you want to get a credit card only you may have credit that is not so hot or even no credit history what so ever. Many consumers wonder how it is possible to build a credit history with no credit or credit that might not be so swell. Surprisingly enough it is very possible for consumers finding themselves in these two particular situations to begin building a solid credit history without having to have a traditional credit card.
A secured credit card would be quite simple for someone with no credit or less then perfect credit to be able to qualify for and receive. All you need to do is complete the application for the secured credit card and make the required security deposit. After those two steps are completed you are well on your way to building a solid credit history. Just keep in mind that you need to apply for a secured credit card that will report all of your credit activities to all three of the major credit reporting agencies.
Department Stores such as Sears and Macy’s will often take a chance on someone who may not have any credit and give them a credit card. So if your luck hasn’t been great in applying for traditional credit cards try your luck in applying for a department store card to use as a tool to start a solid credit history foundation.
Many gas stations will allow people with tarnished credit or no credit history to have a gas station credit card. If you are in either of these situations try applying for a card at your local gas station to begin building a credit history.
These are just a few suggestions of steps that you can take to start building a credit history if your credit record may not be so good (or non existent). With a little creative thought and research you will be well on the way to getting the credit and the credit cards that you deserve.
A secured credit card would be quite simple for someone with no credit or less then perfect credit to be able to qualify for and receive. All you need to do is complete the application for the secured credit card and make the required security deposit. After those two steps are completed you are well on your way to building a solid credit history. Just keep in mind that you need to apply for a secured credit card that will report all of your credit activities to all three of the major credit reporting agencies.
Department Stores such as Sears and Macy’s will often take a chance on someone who may not have any credit and give them a credit card. So if your luck hasn’t been great in applying for traditional credit cards try your luck in applying for a department store card to use as a tool to start a solid credit history foundation.
Many gas stations will allow people with tarnished credit or no credit history to have a gas station credit card. If you are in either of these situations try applying for a card at your local gas station to begin building a credit history.
These are just a few suggestions of steps that you can take to start building a credit history if your credit record may not be so good (or non existent). With a little creative thought and research you will be well on the way to getting the credit and the credit cards that you deserve.
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