Oct 18th 2006
Even if you spend a lot of time managing your personal finances, you probably don’t think of your income and spending in terms of cash flow. If they use the term at all, most people think that cash flow is something that businesses have to worry about. But you also have a cash flow, and figuring out whether it’s positive or negative is an important part of managing your money.
Cash flow planning is the foundation of all Financial Planning, because it allows you to:
- Assess your ability to meet your goals.
- Project your future cash flow needs.
- Identify opportunities to increase income and/or decrease expenditures.
- Make portfolio adjustments to meet your investment objectives with less risk.
Oct 18th 2006
The investment terminology might be new to you, but the facts won’t be. There are different kinds of investments you can buy with your retirement dollars. You will want to choose a certain mix of investments for your account that reflects the amount of risk that you are willing to take. Remember that as the rate of return you want to achieve goes up, so does the risk. You will want a balance that gets you to your goal with a risk factor that you can live (and sleep) with.
To begin your research there are some basic steps to follow and the first one is to take advantage of the Internet and learn what the expertise of market analysts can tell you. There are thousands, or more likely there are millions of sites totally dedicated to stocks and the discussion of investment objectives and strategies.
Oct 16th 2006
In choosing a credit card, think about how you plan to use the card. If you intend to use the card for current expenses and pay it off each month, you’ll want a card with no annual fee and a grace period. If you intend to use the card for large purchases that you over time, then you should look for a card with a low APR (annual percentage rate). No matter what your plans are, you will want the lowest cost credit card you can find, so shop around before requesting a card.
Before applying for a credit card ask yourself these questions:
- Why do you want/need a credit card? – Maybe you need one credit card with a special interest rate to transfer balances from multiple accounts or perhaps you need a card specifically for business purposes.
Oct 15th 2006
Investing, for some, might be just a hobby, but it can sure be an expensive one. Yet, if you’re like many of us, you know there are opportunities for putting your money to work and having it grow. Nonetheless, investing, like any business (and it is a business) has its own unique challenges. Below are several tips and techniques which will help you learn how to invest and what good investments are:
- Pursue a Disciplined Approach: This is a key to successful stock market investing.
- Diversify: Diversify among your stock market investments as well as among various asset classes (such as bonds, real estate, international stocks and bonds, etc.).
- Avoid Large Losses: Protecting your principal from significant investing losses is fundamental to generating an attractive average return over the long haul. Use asset allocation and find a disciplined approach to monitoring your investments and knowing when to cut your losses or sell out to lock in profits.
Oct 13th 2006
There are many ways to save money that can be rewarding and will lower some of the frustration in your life. Below you will find information and budgeting tips on ways to save money and make ends meet during a financial hard time. With a little extra cash left at the end of the month, you can consider doing some fun things for yourself.
Everyone have their own way of saving. Each person save differently. One person may think they are saving, in fact, they are not. 1st rule of Thumb is Buying in bulk does NOT necessary mean that you are saving unless you can realistically finish the product before it expires. In fact, most of the bulk item is only sold for conveience for the businesses and not for residenital usage.
Here are some ways to help you save money:
Oct 13th 2006
One of the great things about using a credit card is that you can buy now and pay later. But some consumers take the pay-later concept to an extreme — they pay only the minimum amount due on their card’s outstanding balance each month and end up paying the maximum costs. The minimum monthly payment on most credit cards is usually calculated as a certain percentage (often around 2 percent) of your total balance.
Your payments include both interest and principal (the amount you borrowed). When you pay only the minimum payment, most of it goes towards interest, which is why it takes so long to pay off the original debt. You wouldn’t pay $7,000 for an item that is clearly marked with a $2,000 price tag, would you? Yet that is exactly what you’re doing when you buy it using a credit card with an 18% interest rate and then only pay the minimum balance each month. Credit card interest is wasted money that you could have used instead to help reach your financial goals.
Oct 11th 2006
You are renting, but you want to be a home owner. For generations, making that move has had to wait until you saved up enough for even a small down payment. But today, the trend is to buy with 100% financing and no money down. Just because the trend is growing, it does not mean it is a good idea for everyone.
When you pay little or nothing down, you increase your monthly mortgage payment because you’re borrowing more money. Also, you’ll pay a monthly private mortgage insurance (PMI) premium, which is folded into your house payment. The purpose of PMI is to protect the lender against the increased risk of losses when buyers pay less than 20% down. That tends to cost 0.5% to 1% of the loan value, up to $3,500 per year on a $350,000 home, or $5,000 on a $500,000 home. It’s money that doesn’t go toward your principal or interest and isn’t tax-deductible.
Oct 9th 2006
Nowadays, the luxury of having cable TV cost an arm and a leg. It ranges from $30 and up. It might not seem much for 1 month, but what about a year’s worth and many years more. You can save up quite a bit of pocket change if you give up on cable TV. There are endless of posibilities to fill the void on not having cable TV.
Let analyze the type of channels on TV. One of my favorite is the cooking channel. Instead of watching TV while other people make the food, how about try creating your own recipies? Borrow some cookbooks from libaries or search for some online and read up on the recipies. Try attend a cooking course, met some new friends. Hold some dinner parties for family and friends.
Oct 9th 2006
Money does buy independence, and independence is one aspect of happiness. But when you’ve covered your basic financial necessities, does more money make you happy?
Much of the research into the field of happiness — to say nothing of simple common sense - suggests that at the level of the individual, happiness is heavily influenced by life events (Did you get the big promotion? Have a fight with your boyfriend?) as well as by psychological traits (self-esteem, optimism, a sense of belonging, the capacity to love, etc.)
The correlation between happiness and family income is very strong indeed - reported happiness rises in a nearly straight line through eight levels of annual family income. At the highest income category — $150,000 and above - fully 50% of respondents report being very happy; by contrast, just 23% of those who have a family income below $20,000 say they are very happy.
Oct 8th 2006
A credit card is a form of borrowing that often involves charges. Credit terms and conditions affect your overall cost. So it’s wise to compare terms and fees before you agree to open a credit or charge card account. The following are some important terms to consider that generally must be disclosed in credit card applications or in solicitations that require no application. You also may want to ask about these terms when you’re shopping for a card. Broadly speaking, there are three types of credit card accounts. They are: bank cards (such as Visa and MasterCard), store/priority cards (such as the Bay and Sears) and travel/entertainment cards, also called charge cards (such as American Express or Diner’s Club).
Before you submit a credit application, get a copy of your credit report to make sure it’s accurate. The three major national credit bureaus are: