Financial | Perencanaan Keuangan | Tips FInancianl

Money Matters - Really!

2008-07-01T21:47:00.017-07:00

One of the biggest challenges facing black RELATIONSHIPS today are finances. Many people mistakenly feel that money does NOT matter. In fact, money matters the MOST! Why? Most people do not have a clue about their own financial destiny.

You know you want to own a home and save some money toward retirement but have you PLANNED what it is you are saving each month and how that money will assist you in the future. Do you have a PLAN to empower yourself financially by NOT depending on your JOB to pay your salary and that's your only source of income. Times have CHANGED. Jobs come and go(and so do SPOUSES). To protect yourself financially you need to be proactive and not depend on anyone else to solve your financial issues.

You can improve your finances RIGHT NOW if they are not in order. There are low costs alternatives to improve your credit score and increase your buying power. Power not to be wasted on designer shoes, clothes, and automobiles, but to be invested in REAL estate. An interesting term to be sure. REAL because it is the foundation of all REAL wealth in this country. Estate, because that is what you can leave your children and family if you handle your business correctly - RIGHT NOW. Money matters because in a relationship YOU should have your OWN MONEY! That is right- I said it! You should not count what someone ELSE brings to the table when all your money is tied up in petty and senseless bills. Talking about petty and senseless- let us discuss CARS! What would possess a person to lease an automobile? Other than as a BUSINESS expense (which also means TAX WRITE OFF) someone PLEASE Tell me WHY? I have heard of folks paying $500.00-$900.00 monthly on car payments. WHY? My car is paid for and I am proud of it. Yes, it is ten years old - BUT I don't work because I DON'T have to support my vehicle. If you are serious about getting more money in this lifetime, you will need to STOP SPENDING money RIGHT NOW on things that DEPRECIATE in VALUE such as CARS! Nuff said!

We all need just ONE major credit card and an American Express card. The other credit cards need to be in the trash. The reality is- if you CANNOT pay for something you purchased within 30 days, you CANNOT afford it! Brutal I know but I have been there and done that. When you have to spend real $$$ on what you purchase, it truly does slow your roll.

Contact me if you need to be pointed in the right direction. I will be happy to assist!

In a personal relationship many of your disagreements WILL stem from money issues. Not just who makes what, but how it is spent and how it is saved. It seems like such a small thing but when you are commingling finance and love you need to establish boundaries up front. PLEASE DO NOT IGNORE THIS ADVICE! You should decide in advance if you want to keep your finances separate and have a joint household account.

The household account should be open to both parties (online access is great for this) and not used for personal spending in any way. The check card will let you market, pay bills etc. A joint savings account would also make saving for special purposes much easier. No matter how much you trust each other, the savings accounts should REQUIRE both parties to sign off on withdrawals. Just to keep everything clean and above board. The traditional (old fashioned) way is to have just one account for checking and one for saving. Even though our parents did this, most mothers (and fathers) always had personal money SOMEWHERE that was just theirs. So why not be upfront about your own personal money issues so they do not come back to haunt you down the road.

By Michelle Smith-Billups

How To Protect Yourself Against Identity Theft

2008-07-01T21:47:00.015-07:00

Identity theft is a serious crime that continues to grow. If you become a victim of identity theft, you may spend months, or years, trying to repair the damage. A compromised credit report can ruin your chances of getting a new job, a loan, insurance or even housing. It's true that it is possible that you could be arrested for a crime you didn't commit if someone else has used your identity to break a law.

Unfortunately, many of the methods that thieves use to steal identities are completely beyond your control. Although it's rare, some store clerks have been known to use their position to give or sell information to identity thieves. There are some measures you can take, however, that will make it harder for them to steal your identity.

Protect Your Credit Card Number When Making Purchases:

After you make a purchase and your credit or debit card has been swiped through a credit card terminal, check to make sure that the printed receipt hides all but the last four digits of your credit card account number (there will usually be an x in place of the first twelve digits).

Some credit card terminals do print receipts that show all sixteen digits of an account number, and may even include the expiration date! After your card is swiped, you're permitted by law to hide the first 12 digits of your account number on the copy of the receipt that the vendor keeps. Use a pen or marker to cross-out the other numbers completely.

When dining out, it's important to make sure that the first 12 digits of your credit card number are hidden on the receipt. You might be in the habit of signing it and then leaving the restaurant's copy on the table after your meal. An identity thief can steal the signed receipt before the waiter comes back to pick it up from the table.

Do You Really Need To Give Your Social Security Number?

Avoid giving out your social security number unless it's absolutely necessary. Although you need to share your social security number when you apply for credit or for a bank account, sometimes a store or an organization will want to use it as an ID number. This is a fairly common practice even though the law says that social security numbers aren't to be used as ID numbers. In these situations, use your judgment. There's usually an alternative if you ask.

Destroy Documents That Contain Sensitive Personal Information:

Buy an office paper shredder and use it to destroy documents you're discarding which contain personal information like credit card numbers, social security numbers, phone numbers and birth dates. Do this both at home and at work.

Identity thieves frequently go through someone's trash to find personal information that can help them obtain credit in the victim's name.

If It Happens To You, Take The Following Steps Immediately:

1: Contact your credit card companies, close your accounts and ask to have new cards issued to you.

2: Place a fraud alert on your file with the three major credit bureaus (Equifax: 1-800-525-6285, Experian: 1-888-397-3742 & Trans Union: 1-800-680-7289).

3: File a report with your local police department. You may need it to show to creditors a copy of the report as proof of the crime.

4: File a complaint with the FTC: http://www.consumer.gov/idtheft/ - They maintain a database of identity theft cases used by law enforcement agencies for their investigations.

By Mike Nalbone

10 Quick And Cheap Ways To Cut Your Heating Bill

2008-07-01T21:47:00.013-07:00

When you received an energy (heating) bill last winter, were you afraid to open it? Granted that we have a home with a lot of really big windows, but we saw energy bills last winter in the hundreds of dollars. Your bill probably wasn't that bad but I'm guessing that it was a lot higher than you would have liked.

The good news is that there are some inexpensive things you can do to cut that cost. Here are 10 of them.

1. If you have a fireplace, be sure to keep the damper closed. You can lose up to 5 percent of your heat if your damper is open when the fireplace is not in use.

2. Keep your furnace filter clean. Replace it at least once a month during heating season. This alone can cut your heating costs by as much as 5 percent.

3. Be sure to keep inside doors open to improve heat circulation. This will help the efficiency of your heating system.

4. Lower the setting on your thermostat. If you can reduce your daytime indoor thermostat temperature from 72 to 68 degrees, you should save about 5 per- cent during the heating season.

5. If your hot water pipes and water heater are warm to the touch, insulate them. This will reduce heat loss and water heating costs.

6. Every minute you cut from your shower saves three gallons of water and the energy required to heat it.

7. Install compact fluorescent (CFL) bulbs. Over the life of just one of these bulbs, you'll save about $15. Use just a handful of these around your home and you could notice a difference in your energy bill.

8. Motion detectors put light where you want it, when you want it, for brief periods of time. They provide safety and security for you and your property, but require much less energy since they are on only when you need them.

9.Be sure to check for cold air leaks at doors and windows. If you have a question as to whether or not they are leaking cold air, light a match and hold it at the bottom of the window or door. You should be able to see very quickly if there is a draft.

10. Apply weather stripping around any doors that are leaking air, and caulk around all your windows. Weather stripping can be purchased from just about any hardware store, as well as stores like Home Deport and Lowe's.

Adverse Debt Levels Blight UK Consumers Personal Finances

2008-07-01T21:47:00.011-07:00

Debt levels are at an all time high in the UK. The younger generation tend to be feeling the pinch the most, but parents are increasingly being required to bail them out, often at great expense to their own limited mortgage or retirement savings.

It has become almost accepted as a fact of life that graduates will begin their careers with a considerable level of personal debt. The Association of Investment Trust Companies found that on average students expected to graduate with £7,208 of debt, while parents believed it would be nearer to £9,741, however the real average was found to be currently running at £13,501. Graduates then need to service credit cards, take out a mortgage, then cover the payments, repay university loans, not to mention the pressure to start saving earlier, and save more, for their retirement, whilst the basic state pension increasingly becomes inadequate. The government revealed in June that student debt for 2003-04 was seven times higher than they were in 1994-95 and the Student Loans Company has shown that debts owed to them has risen to more than £13bn.

It is not only students who face financial difficulties early in life. Consumer Credit Counselling Services - Scotland, has indicated that young adults in general, under the age of 25, now account for more than 10 per cent of the estimated 32,000 people who have fallen into severe arrears on non-mortgage debts of more than £1 billion.

Malcolm Hurlston, Chairman of the Consumer Credit Counselling Services (CCCS) said, "It is noticeable that young people are accounting for an increasing proportion and the number of them seeking assistance has risen by about 25 per cent over the past two years or so."

Analysts have been bracing themselves for news of a sharp increase in adverse debt levels from the major high street banks following report figures of a 21 per cent increase in bad debts levels at Lloyds TSB. City analysts expect HBOS and Royal Bank of Scotland to declare that bad debt charges have risen by around 20% in their personal banking businesses, and Barclays, HSBC and Alliance & Leicester are all expected to tell a similar tale of rising loan defaults. Citigroup analysts are expecting bad debt charges from its retail banking division to rise about 24% in the first half of this year to £230m, while last year HBOS's provisions for bad debt rose from £1bn to £1.2bn.

Keith Stevens, of the chartered accountants firm Wilkins Kennedy, said: "Creditors profit by lending money to people and collecting interest, and the longer they can keep that cycle going the better for them. Unless borrowers own property of significant value, it's often not in creditors' interest to call in their debts." He also continued that he believed some creditors were increasingly taking a hands-off approach, allowing debtors to pile up large amounts of debt, and then collecting interest and penalty charges for as long as borrowers were able to continue paying. This has lead to an increase in the number of borrowers filing for bankruptcy themselves when previously they would have been forced into it earlier by their lenders.

House repossessions have also significantly increased over the past year, with the Council of Mortgage Lenders announcing 4,640 home repossessions during the first half of 2005, compared with 3,070 for the last half of 2004. Government figures show that there has also been an increase in the number of homeowners being taken to court for mortgage arrears.

Some of the major banks and financial service providers have taken the initiative and started to help police the growing adverse debt problems with HSBC announcing that it will share their full credit record, of both positive and negative information, on its personal customers with other regulated financial services companies through the Experian, Equifax and CallCredit credit reference agencies, in efforts to keep tabs on its consumers' debt.

Michael Geoghegan, Chief Executive of HSBC said: "It is no more in the interests of a customer to borrow more money than they can afford than it is for a bank to lend them the money." The move has been widely heralded by analysts, as Michael Geoghegan added, "It is the only way to ensure that lenders properly understand the full financial exposure of customers before they let them sign up to debt that some simply can't afford."

This all comes amidst media pressure for financial firms to become more responsible. One case widely featured in the news concerns a couple who took out the £5,740 loan at 34.9% APR for house improvements, but they were already in arrears on two prior mortgages, and became unable to keep up the loan repayments. Over the course of the 15 year loan term the amount repayable had escalated to £384,000. Attempts by the loan company to still enforce the huge debt, eventually had to be fought off by the couple through the law courts.

The couple urged others considering taking out a loan to seek advice and to, "obviously read the small print and ask the questions that perhaps you don't think about at the time, and just make sure you know exactly what the consequences are should anything go wrong".

There are currently many sources of information to help consumers make decisions regarding their finances and debt levels. Financial comparison sites like Moneynet can provide impartial information on loans, mortgages, adverse credit, etc, to find the best product for individual circumstances. Consumer help sites like the National Debtline provide free confidential and independent advice on how to deal with debt problems, and the Citizens Advice Bureau are there with trained volunteers to help with legal, monetary and other problems, through a free, independent and confidential advice service.

The more help and information that is available to consumers and the more responsible the lending agencies become, the safer finance will be for the most vulnerable who are looking to borrow money, to prevent them getting into un-repayable levels of debt, however these services can only be of help if people actually use them.

Malcolm Hurlston of CCCS said, "We are advising about 4,000 people in Scotland and I would estimate that our figures represent only about one in eight of those who need help".

Financial education is something needs to be provided at an early stage to make people realise the importance of taking on the accountability for their own finances, as well as highlighting where to access help for when it is required. Budgeting is a subject many school leavers have little practical knowledge of, but one which they desperately need to be made aware of before they start to control their own finances.

Where there is existing advice or help, this must be made available and known to all in order to prevent more people getting too deeply into debt, or falling prey to loan sharks like the recent case of Mark Washington Johnson who has been jailed in Birmingham for nearly four years. Mr Johnson was found guilty of charging up to 8,000 per cent interest on loans, taking Social Security benefit books or National Insurance numbers as "security" for the unauthorised loans and then piling on default charges for missed payments. If we are to prevent this sort of abuse occurring to the weakest members of society then public awareness needs to be raised and the most vulnerable people given the assistance best suited to understand and control their own money.

By Richard

Benefits of Personal Finance Software

2008-07-01T21:47:00.009-07:00

In this age of information, keeping track of your finances does not mean an archaic jumble of ledgers, calculators, and papers filled with calculations in chicken scratch. Now everything can be taken care of on your computer through personal finance software.

Personal Finance Software: Organize Your Finances

Your finances are complicated. You have money coming in and money going out. You have bills and investments as well as multiple bank accounts. Personal finance software will keep everything organized for you.

Depending on the software you use, it may be able to separate portions of your finances into various categories for you. For example, Quicken 2005 separates your checking accounts from your savings accounts and allows you to track your investments all at the same time.

Organization saves time. Taking a few minutes to input your purchases and paychecks eliminates those hassles associated with staying on top of your finances. Rather than rifling though bank statements and bills for hours, everything is right here in the program. As long as you put each purchase and paycheck into the software, your checkbook will automatically be balanced. Some programs also feature functions that will create a budget for you; yet another time saver.

Personal Finance Software Knows Where Your Money Is

In order to keep more of the money you make, you must know where it is. Personal finance software gives you the power to know where each penny is at a glance. Some will even create reports for you that detail where your money goes each month. This feature will help you locate the leaks in your budget and reduce your expenses every month.

The overview personal finance software gives you is one of its main benefits. It allows you to take off the blinders and truly assess your financial situation. With this new-found view of your finances, you will be able to effect changes like never before. The old adage applies; you have to know where you are before you can get to where you want to be.

By Jon Martin

Family Money Management: The Importance of Agreement

2008-07-01T21:47:00.007-07:00

Are you having problems with debt? Are you afraid to answer the phone because it may be an angry creditor calling? Do you have problems getting from one paycheck to the next? The simple answer is that you need to budget. But for that budget to work, both you and your spouse need to be in total agreement.

If one of you loves to shop and doesn't worry much about credit card debt while the other hates spending money like death, you have a problem. You can create budgets till Honolulu freezes over, but it won't work and chances, are, you and your significant other will end up fighting constantly.

Even before you start to create a budget, the two of you must sit down and discuss your life objectives. Get out a piece of paper. Make a list of long-term objectives the two of you can agree on. One might be to get out of debt. Another might be to make monthly contributions to a college fund for the kids. A third could be to begin a retirement fund. Or you might decide it's important that one of your get some specialized training that would lead to a higher salary.

Once you agree on your objectives, the two of you can start work on a budget. Step one will be to decide how much you will need to save (or spend) monthly to meet your objectives. You should subtract this first from your monthly income so you can see how much you have left over to work with.

Next, subtract your "secured" debt. Typically, this would be your mortgage payment, car payments, and any other loan payments where an asset such as a boat or RV secures the loan. Then, take a hard look at your other expenses and debt - for example, your rent, food, membership dues, clothing or credit card debt -- as these are the only areas where you can hope to make cuts.

It is important that you both agree as to where those cuts can be made. No matter how strongly you feel about drastically cutting a budget category such as clothing, if your spouse doesn't agree, you're going to have problems. A better solution is to find a compromise - a number that gets you closer to where you think the spending should be but one that your spouse agrees is at least fair. Then, look for another category where you can make cuts to get your final budget number down to where it needs to be.

You should then sit down with your spouse twice a month to review where you are vs. your budgetary goals. You will most likely find that you're under in some categories and over in others. Don't worry about making adjustments at this time. Just make notes as to where you've over and where you're under.

After the first two months, you should know where you've been spending more than you budgeted and where you've spent less. The two of you can then discuss what adjustments you need to make. There should not be a lot of arguing because you have goals you've agreed on and a budget you created by working together.

The important thing is to keep the discussion from becoming accusatory. If one of you has been the "budget breaker," it's better to ask "it looks like we've got a problem here, what to you think we can we do to fix it?" then to say, "you really screwed up this time."

What can you do if you or your spouse just can't control his or her spending and keeps busting the budget, month after month?

Unfortunately that's an issue that probably needs the work of a good marriage counselor.

Bankruptcy Laws Get Tougher - More Expensive

2008-07-01T21:47:00.005-07:00

If you've been thinking about filing for bankruptcy, your best bet might be to file now.

A new bankruptcy law takes effect in November that will make it harder and more expensive for most families to file for bankruptcy and discharge their debts.

The major result of the new law is that fewer people will be able to file for Chapter 7 Bankruptcy and will be forced to file for Chapter 13 Bankruptcy, instead.

A Chapter 13 bankruptcy is basically a reorganization bankruptcy. Under Chapter 13, you must file a plan with the court showing how you will pay off your debts over a period of three to five years. Once both you and your creditors agree on the repayment plan and the bankruptcy court approves it, both you and your creditors are bound by it.

Beginning in November, if you want to file for a Chapter 7 bankruptcy, there will be a qualifying test. Under this two-part test, you will first be required to apply a formula that exempts certain expenses such as food, rent, etc., to see if you can afford to pay 25 percent of your "non-priority unsecured debt" (credit cards, medical bills and the like). Second, your income will be compared to your state's median income.

If your income is above your state's median income, and if you can afford to pay 25 percent of your unsecured debt, you will not be allowed to file for a Chapter 7 Bankruptcy.

You may be able to file for a Chapter 7 Bankruptcy if your income falls below your state's median income but you can pay 25 percent of your unsecured debt. However, if the court believes you would be abusing the system by filing a Chapter 7, you can be required to file for a Chapter 13 Bankruptcy, instead.

If you file a Chapter 7 Bankruptcy today, the court will determine what you can afford to pay based on what you and the court determines are reasonable and necessary living expenses.

Under the new law, the court is required to apply living standards that are derived by the Internal Revenue Service to determine what is reasonable to pay for rent, food, etc., and how much you should then have left over to pay your debts. The IRS regulations are more stringent and if you want to contest them, you will need to ask for a hearing in front of the bankruptcy judge. This can easily mean more time and expense.

When you declare bankruptcy today, your state may allow you to keep all or much of the equity you have in your home. However, the new law places tougher restrictions on this exemption. So before you file, be sure to discuss this with a knowledgeable bankruptcy attorney so that you will know exactly how much of your home's equity you can expect to protect.

Here's another tough restriction. Under the new bankruptcy law, you must meet with a credit counselor in the six months before you apply for bankruptcy. You must also attend money management courses - at your expense - before your debts are discharged.

Understand that it takes a couple of weeks to file for bankruptcy. This means that if you want to take advantage of the current law, you should plan on filing at least by the beginning of September of this year.

Knowing Me, Knowing You: Why ID Protection Plans Are Flawed For Fraud

2008-07-01T21:47:00.003-07:00

ID theft is a major consumer concern, though there is apparently much confusion about proactive protection initiatives and apparently safe and unsafe spending behaviour. For example, many consumers remain reluctant about shopping online, but they may still give out personal details over the phone in a cold call, or they may have redundant or dormant accounts and financial products which are susceptible to fraud.

If reducing fraud vulnerability wasn't sufficiently difficult already, consumers are now being offered anti-ID theft services and ID protection insurance by banks, insurance companies and credit reference agencies. There is considerable debate around such policies however, as they do not offer full financial compensation. In The Observer last week, Richard Brown, Chief Executive of consumer finance site moneynet ( http://www.moneynet.co.uk ) stated that:

"Few, if any, of them appear to offer insurance protection against actual financial loss in the event that a credit company, for example, refuses to cover the loss - and this is what consumers really need. While ID protection services may have a degree of value, they shouldn't be used as a reason to take an otherwise uncompetitive product."

Brown continued that consumers could actually take out simple, cost effective measures against ID theft such as buying a shredder and checking credit reports regularly. The National Consumer Council ( http://www.ncc.org.uk/ ) takes a similar approach, advising consumers to avoid becoming a victim of credit card and identity fraud by:

* Not giving personal information away too easily

* When passing details over the phone, do ensure it's to a legitimate business. Ask friends and family for recommendations

* Shred all documents with sensitive personal data

* Choose your bank security details carefully and avoid obvious passwords

* Avoid carrying around details of your address with your credit cards

* Close any accounts you no longer need

* Check your credit file at the credit reference agencies on an annual basis

Callcredit states warning signs of identity theft and identity fraud could include:

* Bank or credit card statements start disappearing or fail to appear in the first place

* Some of your mail goes missing

* Items on your credit card bill which you did not purchase

* A debt collection agency contacts you about goods you did not order or even an account you did not open

* You receive phone calls for accounts you know nothing about

* Royal Mail writes to your address about a mail redirection order you did not request

However, by just incorporating some of the measures above and keeping a regular check on your finances (e.g. don't activate that second credit card and then put in a box for a year!), a great deal of financial protection is already set in place and you don't have to pay a penny.

Examples of standard protection within English law encompass:

* Protection from forged signatures on cheques

* Protection from forged signatures in documents which enforce an action (the prosecution has to prove that you made the signature, rather than you prove that you didn't)

If your credit card is stolen (or lost), you should be fully protected providing you report the missing credit card within 24 hours of the loss or theft.

If you have never had your credit record checked why not give it a go?

* Callcredit offers a service from http://www.mycallcredit.com/home.asp starting from £7.50

* Experian offers a service from https://www.creditexpert.co.uk/ with a membership fee of £49.99

* Equifax provides a credit report for £9.95 from https://www.econsumer.equifax.co.uk/

By Rachel

Portfolio Planning can Lead to Irreconcilable Differences

2008-07-01T21:47:00.001-07:00

The judge had to ask the question, and we had to answer it in order to get our divorce finalized. It was all supposed to be pro-forma. "Why are you getting divorced?" the judge asked, his head buried in legal file folders.

"Irreconcilable differences," my wife, Sue, and I answered in unison as our attorneys recommended.

To our surprise, he followed up with a second question. "Differences about what?"

"Investment strategies," I blurted out. My attorney stomped me on my foot to shut me up. The judge was intrigued even though 20 other couples, with their attorneys, were waiting behind us.

Sue jumped in. "He believes in using only index funds in our portfolio. What a mistake! We need to actively manage our investments. Since the tech-stock bubble burst we've been losing money. And I dated a guy before this bozo [that was me] who is now a top mutual-fund manager on Wall Street. His fund has increased 13.2 percent a year even during the bear market. We should have given him our money."

The judge was definitely impressed. "I wish I could get my wife to be as interested as you are in our investments," he said. "Seems like you have a real winner here Hesh, so why are you breaking up?"

Just what I needed, the judge siding with Sue. I quickly counter-attacked. "Your honor, I believe in index funds," I said. "Why waste all that money having someone help you beat the market when the numbers say that over time no one really beats the market."

The judge really seemed interested. He wondered out loud, "You guys seem like a sophisticated couple, didn't you discuss this before you got married?"

I immediately answered. I didn't want Sue saying anything else that would make me look like a fool. "Your honor, when the topic of money came up, we agreed that mutual funds made the most sense and that we would max out our 401(k) s.

Honestly, we were just out of grad school, and we really didn't have much money. The topic just never came up again."

The couples behind us had given up hope of leaving soon; they sat down dejected as their attorneys pulled out their cell phones and began sending text messages to their secretaries telling them to cancel their morning appointments.

The judge called for a recess and invited us back to his chambers. Our attorneys were ordered not to accompany us.

"Listen," he said, "I have a solution. We are going back into court. Just follow my lead." Could we say no? I didn't think so. He pushed us out the door into the court room.

The judge followed us a few minutes later. He began solemnly, "After reviewing the facts and consulting both parties I have negotiated a settlement that they have agreed to." We had? My attorney gave me this look. You know the one that says: you got yourself into this mess, not me.

"As a judge in divorce court, I have heard flimsy excuses for couples to split. And personally I am against the no-fault divorce law in our Commonwealth. However, for the first time I have come across true irreconcilable differences in my court room.

"Adultery can be forgiven, just ask Hillary Clinton, but a spouse that hides his or her investment preferences prior to their marriage cannot. Fortunately, in the case before me, neither side knowingly covered up his/her investment orientation. Therefore, with the powers invested in me, I hereby grant their divorce.

"I am, however, outraged by the attorneys who profited from these clients and raised hopes that their differences might be overcome. I hereby order that all attorneys fees be returned and be placed into a trust fund for the children. I am also issuing a bench warrant for the arrest of the marriage counselor who bilked these two fine people of thousands of dollars in counseling fees in an ill-conceived plot to keep them together.

"Only one question remains, how to invest these funds to ensure an appropriate nest egg for the children. Before I rule, excuse me for a personal digression. Many years ago, while I was in law school at Columbia, I was fortunate to room with Warren Buffett. He was studying for his MBA. (Harvard had been dumb enough to have rejected his application.) I just gave him a call and told him of the case I was ruling on. In his typical homespun manner he said that he could not tell me how to rule on the legal issues. However, he strongly recommended that the trust fund for the children be invested in index funds.

"Now who am I, to disagree with The Sage of Omaha? I hereby rule that the children's trust be invested only in index funds."

By Hesh Reinfeld

A Quck Lesson in Saving Money

2008-07-01T21:46:00.009-07:00

Did you have a piggy bank when you were a child? I did. Mine sat empty for a long time until my mother convinced me that I should really start putting my pennies and nickels into it in order to save my money for when I was older and wanted to buy something.

So, I did. I had about forty cents on me from the sale of some baseball cards to one of my friends (probably a Reggie Jackson Rookie Card or something worth thousands today) and I plunked it into the piggy bank to save money for "when I was older." The next day I went to my mother and asked her, "How do you pray?" She was definitely taken aback by the question (I was probably five or six years old at the time), but gave me a long religious discussion about talking to God and waiting to hear an answer, the whole nine yards. I was puzzled by this response and asked my next question, "But how do you pray open?" She asked what I meant, so I went and got my piggy bank to show her the disc on the bottom which had a small slot perfectly sized for the insertion of a flathead screwdriver, upon which was stamped the phrase PRY OPEN. I was, after all, a day older and I wanted my forty cents for the ice cream man.

Too many people seem to have this same, childlike attitude toward saving money. They may open a savings account or even a CD account with the best intentions of saving money until they're "older," but find themselves making more withdrawals than deposits and, in the case of CD's and IRAs, sometimes paying hefty penalties to the bank. If you're one of these people, I implore you to stop.

Put down that screwdriver (withdrawal slip), and walk away so you can save money. The ice cream man (or new TV, stereo system, DVD player or whatever) may look pretty good now, but you'll probably want to have those funds when you're older and on a more limited income. Don't pry open your bank account - the piggy bank for adults - before your time. Heck, maybe you'll get better results by trying to pray it open instead.

by Mika Hamilton

Risky Business: You May Not be as Daring as You Think

2008-07-01T21:46:00.007-07:00

I thought I was through with exams when I finished college. Then my financial adviser (a.k.a. stockbroker) had me take a test to measure my tolerance for risk. He said, there were no right or wrong answers, but I knew better.

Once I had taken a personality test when I was in career transition (a.k.a. unemployed). My counselor had said the same thing, "There is no right or?," but when he told me my score he noted it was on the edge of the bell curve - the wrong edge. My need for acceptance by others was high; so high that I could not confront a taxi driver who gave me zero change from a $10 bill, on a $4.50 fare.

I was very leery of taking this "risk-tolerance profile." As I expected the questions showed that I was a total "wuss." (In Pittsburgh, if you're 15 and a guy it means you always cover your ears in winter).

A typical question; if your portfolio dropped 21.8 percent in one year, would you:

a. Sell all your equities?

b. Sell 1/3 of your equities and buy intermediate-term, tax-free municipals?

c. No change, staying the course?

I selected 'c' not because I believed in my strategy but out of total fear.

And yet deep down, when it came to the important things in life I felt that I was a risk-taker. I could be as much a risk-taker as an F-16 fighter pilot or a New York City undercover cop. However, no test ever asked the real important questions of life, the kind of questions that affected my daily reality. Questions like:

You have to drive to the airport. You get in your car, turn on the engine, and the gas gauge is on "E." Do you: a) immediately fill up, b) drive to the airport but don't put on the air conditioning, or c) drive back and forth without ever looking at the gas gauge again. OK, now lets add some real risk to the above question. What is your answer assuming your spouse is in the car with you?

Now let's deal with food instead of hedge funds. For example, for breakfast you like your bagels dark but definitely not burned. You've just put a bagel in the toaster, and it is just not dark enough. You put it in the toaster again, just nudging the dial to the optimum position, taking into consideration the heat already generated and the level of darkness around the edges of the bagel. As you wait for your bagel, do you: a) stand there staring at the bagel, b) let the dog out, c) get your newspaper from the driveway and check the Knicks score.

How would your answer change if it were your last bagel?

Now lets deal with the most risky part of life - relationships: Its 11:30 p.m., Thanksgiving Eve; your wife is exhausted, having cooked the 24-pound turkey and the rest of the food. She asks you to place the turkey in the fridge in the basement. She reminds you of last year's fiasco when you forgot to refrigerate the bird. Do you: a) do it immediately; run upstairs to report to her that you completed the task. You then return to the basement to ensure that you have closed the fridge door, b) leave a note for your teenage son to do it when he comes in after midnight.

Now for extra credit. You get a call from your high-school sweetheart. She asks to meet you for coffee in an hour. Do you: a) decline and tell you wife about the call, b) decline and not tell you wife about the call, c) ask your son if you can borrow his mousse. You get the idea. On this kind of test, I would score very high.

I figure once I fine-tune my questions, I could use this kind of questionnaire to screen professionals trying to give me advice. For example, my internist wants me to come in to review the results of my prostate exam and to discuss the different options and the risks involved with each course of action. I may surprise him and ask him to complete my questionnaire first. I want to see what kind of risk-taker he is.

P.S. My stockbroker just took my exam. He failed. I am looking for a new broker. Any recommendations?

By Hesh Reinfeld

10 Tips to Make Sure Your Financial Budget Will Succeed

2008-07-01T21:46:00.005-07:00

You've analyzed your past expenses, put them into spreadsheets, loaded Quicken with all of your data and come up with a budget. Now what? The tough part! You actually have to stick to your budget and put your plans into action. This is easier said than done. In many cases you will have forgotten about your budget and your financial goals 6 months or a year down the road. How do you keep this from happening to you?

Here's how. Make sure you follow some of these tips below so this doesn't happen to you.

1. Create a budget with realistic targets - Let's say one of your budget goals is to not eat out for lunch or dinner on a regular basis. If you are honest with yourself you may find this to be an unrealistic goal. Sometimes it's a nice break to eat out and have a relaxing rewarding evening. In other words, don't set the bar too high. Drastic and unrealistic goals are one of the surefire ways your budget will not succeed.

2. Budget for expenses that don't occur on a routine basis - Make sure you give consideration to expenses that occur once a year, such as holiday presents, birthdays, vacations, weddings, car maintenance costs, etc. These expenses don't occur every month and they will bust your budget plans wide open. Make a list of these events on a calendar and put a dollar figure to them. Place them in the month they are expected to occur so you can plan in advance how you will pay for them. The regular routine expenses are not the reason your budget will fail. It is these "gotchas" that will wreck havoc on your budget if you don't plan for them.

3. Put your budget in writing - Take the time to write down your budget plans. Making a mental note of your budget goals is a recipe for failure. Don't assume that your financial future will take care of itself by making a simple mental note to yourself. If you have your budget goals detailed in writing you can review and remind yourself weekly and monthly of your financial goals.

4. If you have a bad month or week, don't give up! - Let's say you have been reaching your budget goals for three months. In the fourth month, for whatever reason, you didn't reach your budget goals. Maybe you even stopped trying to stick to your budget! If this happens, don't just throw your hands up in the air and admit to failure. Everyone falls off the wagon sometimes. Your budget is a journey. There will be bumps in the road, so the key is to realize that everyone makes mistakes. This relates to a story I like about a great old time golfer named Walter Hagen. Before each round of golf, he told himself that he would have 4 or 5 bad shots. During the golf round, if he hit his ball into a bunker, he would tell himself, "There is one of my bad shots that I was expecting", hit the ball out of the bunker and move on. It didn't phase him one bit because he had knew there would be some bad shots in his round.

5. Adjust your budget over time - This one is a biggie! It can take months or even years to fine tune a personal budget. When you initially made your budget plans, you probably had to guess at some of your figures. They might not have been in touch with the realities of every day life. For example, you may have underestimated your monthly grocery or utility bills. If this happens, analyze all of the underlying money that was spend in this category to see if your initial estimate was unrealistic. If it was, try to come up with a more accurate number and then to stick to that new figure. It is this type of adjustment that is one of the keys to making sure you can stick to your budget.

6. Review your budget every month - This is where you will make any adjustments that are needed. Set aside the first day of each new month to review your income and expenditures and match them to your budget goals. By actively reviewing your finances and comparing it to your budget, you can adjust your spending habits. This gives you a chance to analyze areas that exceeded your budget expectations and make the adjustments in your spending habits or your budget. The goal here is to not forget about your budget. One tip that has worked for me is to put a printout of my basic budget goals on the refrigerator. That way every day, several times a day, I would notice my budget goals sheet. I may not read it every time, but I notice it and it reminds me that I need to stick to my budget. That is why tip number 3 is so important.

7. Set specific short-term goals - Let's say one of your budget goals is to have all of your credit card bills paid off in two years. If your credit card balances total $20,000 that would be $10,000 a year. Divide that number further into quarterly reductions in your credit card bills, in this case $2,500 every 3 months. Now, this is a more tangible budget goal to shoot for isn't it? I find that when I divide intermediate and long term goals into short-term tangible stepping stones, I am able to feel a greater sense of accomplishment and am more likely to succeed. This brings us to number seven?

8. Reward yourself - That's right! Treat yourself when you reach your some of your short-term goals. Since your financial budget is really a journey, take some time to smell the roses on your way. Sticking to your budget should not be a restrictive, unpleasant experience. Not only should you take the time to enjoy your financial accomplishments along the way, but use part of your budget for fun things that you enjoy. Just make sure your rewards don't end up breaking your budget!

9. Pay yourself first - I'm sure that one of your budget goals is to save and invest a portion of your income. One of the keys to make sure you succeed at this is to do what the IRS does with your paycheck, take it out of your discretionary income immediately. This way, the money is saved away right off the bat. Move the money immediately into a savings or mutual fund account. Many mutual fund companies can setup automatic deductions from your paycheck. Despite your best intentions to save, the hectic, daily demands of life can reduce the amount you are able to save.

10. Attitude is everything - When most people think of a budget, they picture restrictions and pain. Almost like a diet. You know what happens with most diets? They don't seem work for long! First, if your budget is too strict, too restrictive on your spending, it won't work either. However, you will need to limit your spending in some areas and this will take some adjustment in your attitude. I found that when I am feeling limited and sorry for myself when I can't purchase something that I want, I remember my financial goals I set with my budget. I think about the satisfaction I feel when I reach those goals. Over time, you find that you don't want to disappoint yourself by breaking your spending goals on a spur of the moment purchase. Now, I actually get more pleasure knowing that I am reaching my budget goals when the thought of an impulse purchase crosses my mind.

If you follow these tips, your budget plans are more likely to be a great success. By taking some simple steps you will find that living within a budget is not as tough as you imagined. It can actually be fun and rewarding!

By Greg Quincy

Identity Theft is a Major Problem: Whose Responsibility is It to Protect the Consumer?

2008-07-01T21:46:00.003-07:00

We have heard a lot about consumers' personal information getting into the hands of identity thieves. More and more people are taking steps to minimize their exposure to such theft by reducing information on personal checks, refusing to share social security numbers with just anyone who asks, being prudent in their use of credit cards, and shredding "junk" mail that might allow another person to pose as them. However, we can do little to protect ourselves against lackadaisical security methods or unscrupulous business practices.

Because recent reports confirm that personal information continues to fall into the wrong hands, consumers have become increasingly concerned about how companies handle their personal information. But consumers can only do so much; then it's up to businesses to provide their customers with privacy policies that will ensure their information is handled appropriately and secured from the hands of would-be opportunists, as well as outright crooks.

How can this be accomplished? As business owners, managers, or supervisors, we need to establish and enforce effective company privacy policies. These polices should outline the handling, reviewing, storage, and destruction of customers' personal information, as well as that of employees. Once privacy polices are drawn up, they must be carried out. All employees should be trained in the handling of sensitive information. When employees obtain personal information from customers, several questions need to be asked. Who is allowed to handle it? How long will the information be unsecured? Can information viewed on computer screens be seen by others? How will the information be secured? Who will have access to it? How long will it be kept, and when will it be destroyed?

Establishing strict information handling procedures may be cumbersome. However, they are necessary if we are to gain and keep the confidence of our customers and our employees. Review the following privacy policies that should be established and practiced by every business.

? Adjust computer screens so customer information is not visible by anyone standing in close proximity. If the screen cannot be moved, place something in the line of sight to block unwanted viewers. Hanging plants, room dividers or frosted glass can block the view.

? Computers should be password protected. When an employee leaves his/her computer, it should always be secured and protected by a password. Even if you leave your computer for just a few minutes, unsecured information could be accessed by anyone passing by.

? Customer files should never remain unattended on a desk that can be accessed by customers or unauthorized employees (including cleaning or maintenance staff). Files left unattended can be quickly viewed and documents stolen or copied. Files should always be in a secured drawer or locked room when not in use.

? Customer information should be secured as quickly as possible. Once information is obtained from a customer, the document or program should not be left unattended. Secure all information before servicing another customer.

? When customer information is secured, assign specific employees who will have access to the information. The more employees who have access to the information, the more chances exist for misappropriation. Don't tempt employees with the access if they don't really need it.

? Don't discuss customer information when other customers or employees are able to hear. When requesting information from the customer, have the customers write it down for you. Once you are finished with the written information, it is very important that you hand it back to the customer. This way the customer can dispose of it, and there are no concerns that the written information is intentionally or inadvertently passed on to someone else.

? Don't leave outgoing mail out over night or over the weekend. Mail or any other documents that are waiting in an "out box" can be easily access by cleaning, maintenance, or service staff, as well as by children or friends of employees. Keep outgoing items secured until pick up time. A central location should be designated for such items during the week. Often items placed with other out going mail or documents are quickly forgotten, that is, until the recipient notifies you that the document has not been received. The more time that has lapsed between sending and receiving the mail or documents, the less likely you will be to locate them.

? Documents waiting to be shredded should be in a secure place. Many offices use a box under each desk, where documents are thrown until the end of the week. This system provides easy access to documents that are seldom noticed if they go missing. Shred bins should be locked or kept in a locked room. Larger bins are often used to store documents until a document disposal company takes them. These bins should also be locked or kept in a secured area.

As employers, we often obtain information from Consumer Reporting Agencies (CRAs), to help with our hiring decisions. The Fair and Accurate Credit Transaction Act (FACTA) places emphasis on the accuracy of information, and under new FACTA provisions, any business that uses consumer reporting agencies must adopt proper disposal procedures for the information obtained.

Consumer Reporting Agencies are not just "credit" reports issued by one of the three major credit bureaus. Consumer reports include medical records or payments, insurance claims, employment history, check writing history, and residential or tenant rental history. There are several companies that specialize in providing reports for specific purposes. FACTA defines companies that issue non-credit reports as "nationwide specialty consumer reporting agencies." Consumers may request a free annual report from any of the specialty CRAs.

FACTA also says that receipts for credit and debit card transactions can include no more than the last five digits of the credit card number and expiration date. If you are using a merchant processing machine check to make sure the program is not printing the entire number. If it is, call your provider and request the program be updated to comply with FACTA. Noncompliance could result in fines.

Take steps now to ensure that your merchant processing program will not print the entire credit/debit card number. This does not apply to merchants who only accept handwritten or imprinted card information. This method creates its own problem of securing the consumers card information at all times.

What all this boils down to is that we, as employers, business owners, managers, and supervisors need to make a greater effort to provide our customers with the peace of mind that their identities and their information are safe with us. All of our employees need to handle customer information with care and respect that is apparent to all customers. Without our help in the secure handling of the personal information of our customers and employees, the fight to stop identity theft and fraud will continue to rage. We need to be smarter than the crooks by eliminating their means of obtaining information.

Who knows, the next customer to have information stolen might just be you.

By Cindy Schroeter Graham

How to Choose the Right Bank for Your Online Business

2008-07-01T21:46:00.001-07:00

You should thoroughly consider your business needs when selecting a financial institution or bank for your small/home business. You may want to consider the following points:

- The types of products and services that are offered.

- The bank's criteria for qualifying for a loan.

- The minimum balances for accounts, interest rates and charges for account services.

- Location and Access to ATMs

- Online Banking Services

One bank may specialize in home loans or auto loans while another may focus on commercial loans for businesses. Some banks may only offer basic deposit accounts while others have lock box services, sweep accounts, and even online banking! It's very important to evaluate your business needs before you select your banker.

Here are some of the things that your banker may be able to help you with:

- Help you with the cash management needs of your business.

- Offer investment products of varying maturities or risks.

- Provide advice regarding what it will take to qualify for the loan that best meets your needs.

- Provide special loan programs for small businesses, including SBA loan programs and other government-guaranteed or agency loans.

- Assist you with finding financial information on your industry.

So compare different banks in order to find the one that will serve your business's needs and will also provide support and assistance during the infancy stage of your business. Selecting a bank that you can work with will be especially important as your business grows.

Start shopping around by gathering information to help you make this important selection. Compare interest rates on deposit accounts and basic consumer loans (most business loans are negotiated, so the rates won't be posted at the banking center). Also, look carefully at the charges for services. Tell them about your business and the form of organization so that they can tell you what special products and services or restrictions might apply.

Before selecting a bank, be sure to have a good understanding of your own business needs, and what you need from your bank. If you know what you will need from a bank, it will be much easier to evaluate and compare between various services. Remember, it is a good idea to establish a relationship with a banker, before you need money. The right banker will be someone that understands the needs of emerging and growing businesses. They will be interested in your business dreams and will help you achieve them.

By Chileshe Mwape

What is ChexSystems?

2008-06-30T00:30:00.013-07:00

Commonly referred to as the first of the three major "Check Systems" in the U.S., Chex Systems is an association of financial institutions that network together in order to develop a database that maintains the records of mutually unwanted customers. To make sure that only financially responsible individuals open up checking accounts at member institutions, these banks report on customers who demonstrate poor financial management skills. When a customer's checking account is closed due to demonstrated mismanagement, then he or she is reported to Chex Systems. Once done, the customer will have a very difficult time opening up an account at any other financial institution partnered with Chex Systems for the next five years.

Since the vast majority of financial institutions (banks) reject potential customers who are on file at Chex Systems, being reported to them can put an individual at an extreme disadvantage. But what, exactly, does it take to get a checking account closed and reported to Chex Systems in the first place? The answer the bank usually gives out is simply "closed for cause." Yet there are many ways that a customer can end up having his or her account terminated. These range from acts as serious as fraud to the simple irresponsibility that leads to excessive overdrafts. It is important to remember, however, that policy can vary greatly between financial institutions. Depending upon which bank is in question, instances in which accounts are "closed for cause" can involve customers:

? not reimbursing their bank for overdraft amounts

? misusing savings accounts, ATMs or debit cards

? offering information that is misleading at the time the account is opened

Yet while there are many factors that can lead to account closure, banks are not always forthcoming about the specific reason for terminating an account. This can lead to some confusion when one seeks the reason for being denied a new account. Fortunately, anyone who has been blocked from opening an account at a financial institution due to the involvement of Chex Systems can request a copy of their Chex Systems file and use the information provided on our website to begin banking again quickly.

By Scott Felix

Budgeting Made Easy

2008-06-30T00:30:00.011-07:00

Well, dang! From what I've heard and read, it looks like we've reached an all-time world-class new record in the amount of personal debt on the books. Now it's probably not quite as bad as we've been led to believe, however many of us have managed to tromp further than we should have into the financial swamp. How well we'll be able to find our way back out to dry ground will depend on our knowing just where the heck we are in the first place. And that takes us right to the "B" word.

"Budgets"

For some of us, the word immediately congers up visions of frowning accountant-type folks, complicated computer programs and mountains of wadded up balls of scratch paper piling up around the kitchen table. For those of us who are fiscally challenged and would prefer to place our faith entirely in the benevolence of the Saints of the Oblivious Shopper, even the mention of the "B" word is enough to drive us to the emotional security of watching the latest TV reality shows.

I really hate to be the one to break the news to you, but just stuffing the bills behind the rooster cookie jar on the counter until you get around to paying some of them is not a real good start toward financial security. Nor is the technique of paying what you can until you run out of whatever money you think you have in the checking account. Both of these will have about the same effect as the time-honored technique of tossing the bills at the wall to see if they stick. You know what I'm talking about, right? If they stick, they get paid. If not - oh well, better luck next month!

Here's a suggestion for a fairly painless step toward controlling your personal cash flow. (That's like making a budget but I didn't want to scare anyone off here?) Get a spiral binder, pick a page and draw in a bunch of columns. No, it doesn't make any difference how many. At least five would be good.

In the first column, write down the names of your expenses. You know, like food, house payment or rent, gas, car payment, electricity, phone, child care, credit cards - that kind of stuff. Put one expense name on each line as you go down the column. Don't forget the clothes, entertainment and insurance entries. Even if you pay your insurance quarterly or semi-annually, you need to break this down into a monthly "expense" so you can save for it or at least see where you stand. If you'd like, it's not a bad idea to list the expenses in payday groups. List the bills you'll need to pay from the first pay day of the month in one section of the column and create a separate group for the bills that should get your attention on the second payday. Whatever works best for you.

In the second column, write down how much you normally spend each month for each of the expense entries in the first column. If you're not sure, take your best guess and write it in pencil. You can always make adjustments later.

At the top of the remaining columns, write in the names of the months that are coming up. You'll use these columns to record your actual payments as you make them.

Now, just for the heck of it, add up your estimated expenses and compare the total to your projected monthly income. If what's going out is more than what's coming in, you know right from the get-go that you'll need to make some adjustments. If the figures show that you should have money left over at the end of the month but it never seems to work out that way, there are obviously some expenses you've forgotten about - or maybe weren't really aware of in the first place. How about maintenance on the house or car? Medical expenses? Birthday and Christmas gifts? Or how about eating out? Was this included in the food expense - or the entertainment expense? And yeah, going out for lunch and the quick snacks or drinks at your favorite convenience store need to be included somewhere.

Next - instead of shoving the bills behind the cookie jar when they come in, just toss them into the spiral binder on your current budget page. That way you'll always know exactly where they are. When you pay them, be sure to remember to write down the amount in the appropriate column.

Here are a couple of hints on bill-paying. Do it first, right after payday before you spend the money on anything else. Plan ahead. Allow at least a week for the check to travel to your lender and be credited to your account. Two weeks is even better. The last thing you want to see is a series of late payments on your credit report. If you haven't gotten a bill yet and you know it needs to be paid out of this week's paycheck, hold the money and don't spend it on other stuff.

Debit cards are great but they can quickly cause problems if we're not careful. If you like to make purchases with a debit card, be sure to tuck the receipt in your wallet and then remember to write the amount in your checkbook as soon as you get home. Then either write that amount in the appropriate column in your budget or simply toss it in the spiral binder for entry later. If you normally make several trips to the grocery store in a month, just paper clip the receipts together and enter the totals into your "ledger" a couple times a month. Weekly if you wish. If you like to pay your bills on-line, remember to enter the amount in both your checkbook and ledger.

All-in-one stores - those that carry groceries and a variety of other items - tend to complicate the budgeting process because we really should separate the purchases so we can see where we're spending our money. Make it easy on yourself. If your basket is filled mostly with groceries and the "other item" purchases are small, just enter everything in the food column. If you normally purchase a significant quantity of "other stuff" along with the groceries, you should think about either separating the expenses yourself (a pain in the rear) or having them rung up separately as you check out (also a pain in the backside). Or maybe a separate trip through the store would work better for you. Your choice?

Credit card payments. If at all possible, pay more than the minimum amount. There's no reason to keep forking over your money in the form of interest payments to big corporations for the next umpteen years if you can avoid it. It's best of course, if you can pay any credit card debt off monthly. If that's not possible, then concentrate first on the high-interest cards to get them out of the way as soon as possible. Pick one and do everything you can to get it paid off. Then go to the next one on the list and take care of it. I don't need to remind you that it's not a real good idea to charge more on these cards while you working so hard to pay them off, do I? Nah, I didn't think so. While you're at it, once a card is paid off, seriously consider canceling it. There's no good reason to have more than a couple of credit cards - of any type - in any one household. So remove the plastic temptations from your wallet and take one more step away from the swamp.

One more thing on credit cards. OK, maybe a couple more. Credit cards are for convenience and maybe emergencies. They're not to live on. Convenience for those individuals who find it advantageous to accumulate their expenditures so they can make a single payment once a month. Uh folks, that's not a good approach for most of us. We can too easily slip into believing that whatever limit is showing on the card is really our money and spend accordingly. A direct path into the swamp. As far as emergencies are concerned, it's better to have a stash of cash set aside to handle those unforeseen events, however sometimes that just isn't possible. So OK, use the cards for emergencies if necessary, but your budgeting still needs to include a potential emergency repayment amount. And let's face it, if you're stashing cash for emergency repayment it won't be long until you'll really have the money available to cover most situations and you won't need to use the card anyway. By the way, if your credit is in good shape, it's far better to snag a bank or credit union loan at a much better interest rate to handle those emergency expenses. One last thing on credit cards. If you can't pay the bill in full each month then don't use them to eat out. That creates some very expensive meals that will provide you with just enough energy to lead you even further into the swamp.

So where is this leading us? Well, after tracking all - I repeat, all - your expenditures for two or three months, you should have a real good idea of where you stand. If your monthly expenses - including allowances for maintenance, entertainment and emergencies - is greater than your income, you only have a couple of options. Either increase your income in some way such as through a part-time job or reduce your expenses. That's about it. And sure, if you're facing a major financial crisis, credit counseling may be the way to go. If that's the case, be careful of the organization you choose to help you out. Articles in MSN Money indicate that you'll be safe if you stick with either Consumer Credit Counseling Services or Myvesta (a non-profit financial crisis center).

The bottom line? By using the spiral binder budgeting technique, you'll be able to quickly get a better grasp on where your money is going - and you'll be able to see at a glance where you stand at any time during the month. Hopefully, you'll be able to also set aside some coins not only for emergencies but also for the more fun things like vacations. And if you're not doing it already, work toward being able to slide a portion of your earnings into a long-term savings account. By paying off the old credit cards, you're already taking major steps in that direction but as soon as possible, establish a real savings account where you can earn at least a little interest on your money. Consider having this direct deposited into the account from the amount you earn at your job. If you don't see it, you won't miss it as much.

One last thing. Be sure to tell your kids that the secret to a really comfortable retirement is to save just ten percent of everything they earn. Nah, they probably won't listen but it's good advice anyway?

By Gene Simmons

Reporting Identity Theft

2008-06-30T00:30:00.009-07:00

Would you know what to do if you suspect that your personal information had been stolen and used by thieves to open new accounts? It's important that you take the right actions to clear your name as quickly as possible.

In 2005, the laws were changed to allow anyone to review their credit report yearly without having to pay a fee. You can also get a free credit report if you were denied credit during the previous 60 days. By reviewing your credit report periodically, you have a better chance of stopping any unauthorized activity more quickly. There are services that, for a small fee, will monitor your information each business day to ensure that no one else has access to your accounts.

If the worst should happen and your identity is stolen, do you know what to do first and where to report the crime? Are you aware of what forms need to be filled out, or where to send them? Often, the police won't take an active role or even open an investigation. There will be considerable paperwork to complete and send to all of the responsible companies and agencies.

The process of clearing your name can seem overwhelming at times. Having guidelines to walk you through the stages can make the difference between effectively submitting your documentation, and battling through months of bureaucratic red tape.

Although the Federal Trade Commission is the lead agency for identity theft issues, there are a number of other federal and state agencies that have jurisdiction, depending upon the type of crime committed. You may need to contact a host of agencies, companies, credit bureaus, and investigators. It frequently takes many months or even years to correct the errors.

You'll also need to keep very accurate files of all contacts, including conversations and written correspondence. It may be easiest to make a chart and include date, agency or company, contact person, and a summary of the information discussed. Keep copies of all original documents, and only send out copies. Send them certified mail, return receipt requested. That way, you have documentation of when your letters were received.

With patience, determination, and a "game plan" describing what to do, you can get through this very difficult experience and begin to put your life back together.

By Norm McAlister

I Want to Buy a Home - Now What?

2008-06-30T00:30:00.007-07:00

If you were to ask 100 women "What would you like to achieve financially?" Buying a home or apartment is usually one of the answers. Some women think that they can never own a home - which is not true! In fact, there are so many success stories of home buyers who never thought they would get there. In addition, homeowners tend to have greater financial success in the other areas of their finances life. I've seen it over and over.

The benefits of owning a home include: building equity, saving money on taxes and an integral step towards building wealth. With interest rates so low, this is a great environment to buy a home. This article is a checklist with tips and guidelines to buying a home. If you already own a home, some of these tips will be helpful for refinancing your home. Real estate is not a substitute for stocks but it plays a big part in your financial fitness.

1) CHECK YOUR CREDIT. Get a recent a copy of your credit report, especially your FICO score (the score lenders use to determine your interest rate). Check out www.myfico.com.

2) HOW MUCH HOME CAN YOU AFFORD? Start with your monthly payment and plug it into a mortgage calculator. (Great one on www.eloan.com: Affordability Calculator). This site tells you how much home you can afford assuming certain numbers. For example, if you make $6,000 per month before taxes, you can afford anywhere from $125,000 to $345,000 assuming $25,000 as a down payment. There are different choices with the actual monthly payments. If you don't have enough saved for a down payment, create a separate savings account and come up with a savings schedule. Only borrow what you can afford!!!

3) ORGANIZE YOUR DOCUMENTS. Get together the following documentation: past 3 years of tax returns, recent paychecks, bank statements, investment statements and all other financial statements.

4) WHICH MORTGAGE IS THE BEST FOR YOU? Understand the different mortgage options. Most are based on a 30-year amortization cycle: fixed-rate, adjustable and a hybrid. Hybrids are very popular now; fixed rate for a certain amount of time and then they adjust annually. Consider a 15- or 20-year fixed rate mortgage. The payments will be a bit higher, but you will end up paying much less interest over the course of the mortgage and be debt-free much sooner!

5) SHOULD YOU PAY POINTS? A point is equal to 1% of your loan amount. You pay a point to receive a lower interest rate on your loan. If you get a low enough rate, paying points can be worth it.

6) SHOP AROUND. Work with a mortgage broker or check out a few mortgage websites: www.e-loan.com, www.bankrate.com

7) PRE-APPROVAL 6 MONTHS BEFORE BUYING A HOME. Get pre-approved for a loan from the bank or your mortgage broker. It gets the process going faster and in a competitive market, it gives you the edge.

8) MINIMIZE YOUR DEBT. Avoid big-ticket purchases so not to add to your debt load.

9) SAVE MONEY ON TAXES. Points paid for a first-time home (not for refinancing) can be deducted in the year your home was closed.

10) BE CAREFUL OF COSTS. Don't ignore transaction costs and watch closing costs very carefully. There are also many hidden costs of home buying: moving, minor renovations (especially if you are buying an older home). Make sure you are prepared.

11) DIVERSIFY, DIVERSIFY, DIVERSIFY. Don't tie up all your assets in your home.

12) PAY YOUR MORTGAGE AUTOMATICALLY. Get it taken from bank account automatically every month. You don't ruin your credit and don't forget to pay every month on time.

13) REFINANCING? · Shop around for interest rates. · Start with the bank that currently holds your mortgage. It may give you a good deal just to keep your business. · Avoid paying points. When you refinance, you can deduct only a portion of the points each year, so it's usually not a good deal. · Don't try to outsmart the market and wait for interest rates to hit their low point. If the numbers make sense for you, go for it.

14) PMI INSURANCE. You will have to pay monthly PMI insurance if you put down a down-payment less than 20%. Once you are paying your mortgage for more than a year, ask your lender to reconsider.

15) BAD CREDIT? DON'T HAVE ENOUGH FOR A DOWN-PAYMENT? · You can use your investments or securities as collateral for buying a home. · Consider a low-documentation, no documentation or sub-prime mortgage. You will pay a higher interest rate but it will help build your credit and equity. · Also, check out these government agencies: · Freddie Mac www.freddiemac.com. · Fannie Mae www.fanniemae.com. · www.hud.gov/fha.

16) OTHER MORTGAGE OPTIONS: · Bi-weekly mortgages, · Customized mortgages - usually offered by local banks, · Use investment portfolio as collateral and a smaller cash down-payment.

17) HOME INSPECTION. Have an inspection done by someone with accreditation (www.nahi.org).

18) REMODELING? If you remodel, be diligent about keeping records. The right improvements can decrease your taxable gains when you sell.

19) CAN'T AFFORD TO BUY NOW? But want to get into real estate? Check out REIT stocks or REIT mutual funds, www.investinreits.com.

By Galia Gichon

Bankruptcy Chapters Explained

2008-06-30T00:30:00.005-07:00

Chapter 7

The potential chapter 7 debtor should understand that a straight bankruptcy case does not involve the filing of a plan of repayment as in chapter 13, but rather envisions the bankruptcy trustee's gathering and sale of the debtor's nonexempt assets, from which holders of claims (creditors) will receive distributions in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, under chapter 7, the individual debtor is permitted to retain certain "exempt" property. The debtor's remaining assets are liquidated by a trustee. Accordingly, potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property.

In order to qualify for relief under chapter 7 of the Bankruptcy Code, the debtor must be an individual, a partnership, or a corporation. 11 U.S.C. §§ 109(b); 101(41). Relief is available under chapter 7 irrespective of the amount of the debtor's debts or whether the debtor is solvent or insolvent. An individual cannot file under chapter 7 or any other chapter, however, if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d) and (e).

One of the primary purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a "fresh start." The discharge has the effect of extinguishing the debtor's personal liability on dischargeable debts. In a chapter 7 case, however, a discharge is available to individual debtors only, not to partnerships or corporations. 11 U.S.C. § 727(a)(1). Although the filing of an individual chapter 7 petition usually results in a discharge of debts, an individual's right to a discharge is not absolute, and some types of debts are not discharged. Moreover, a bankruptcy discharge does not extinguish a lien on property.

Chapter 11

A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy.

How Chapter 11 Works

A bankruptcy case commences when a bankruptcy petition is filed with the bankruptcy court. Fed. R. Bankr. P. 1002. A petition may be a voluntary petition, which is filed by the debtor, or it may be an involuntary petition, which is filed by creditors that meet certain requirements. 11 U.S.C. §§ 301, 303. A voluntary petition should adhere to the format of Form 1 of the Official Forms prescribed by the Judicial Conference of the United States. The Official Forms may be purchased at legal stationery stores or download from the internet at www.uscourts.gov. The voluntary petition will include standard information concerning the debtor's name(s), social security number or tax identification number, residence, location of principal assets (if a business), the debtor's plan or intention to file a plan, and a request for relief under the appropriate chapter of the Bankruptcy Code. In addition, the voluntary petition will indicate whether the debtor qualifies as a small business as defined in 11 U.S.C. § 101(51C) and whether the debtor elects to be considered a small business under 11 U.S.C. § 1121(e).

Upon the filing of a voluntary petition for relief under chapter 11 or, in an involuntary case, the entry of an order for such relief, the debtor automatically assumes an additional identity as the "debtor in possession." 11 U.S.C. § 1101. The term refers to a debtor that keeps possession and control of its assets while undergoing a reorganization under chapter 11, without the appointment of a case trustee. A debtor will remain a debtor in possession until the debtor's plan of reorganization is confirmed, the debtor's case is dismissed or converted to chapter 7, or a chapter 11 trustee is appointed. The appointment or election of a trustee occurs only in a small number of cases. Generally, the debtor, as "debtor in possession," operates the business and performs many of the functions that a trustee performs in cases under other chapters. 11 U.S.C. § 1107(a).

A written disclosure statement and a plan of reorganization must be filed with the court. 11 U.S.C. § 1121. The disclosure statement is a document that must contain information concerning the assets, liabilities, and business affairs of the debtor sufficient to enable a creditor to make an informed judgment about the debtor's plan of reorganization. 11 U.S.C. § 1125. The information required is governed by judicial discretion and the circumstances of the case. The contents of the plan must include a classification of claims and must specify how each class of claims will be treated under the plan. 11 U.S.C. § 1123. Creditors whose claims are "impaired," i.e., those whose contractual rights are to be modified or who will be paid less than the full value of their claims under the plan, vote on the plan by ballot. 11 U.S.C. § 1126. After the disclosure statement is approved and the ballots are collected and tallied, the bankruptcy court will conduct a confirmation hearing to determine whether to confirm the plan. 11 U.S.C. § 1128.

Chapter 12

In tailoring chapter 12 to meet the economic realities of family farming, this law has eliminated many of the barriers that family farmers had faced when seeking to reorganize successfully under either chapter 11 or 13 of the Bankruptcy Code. For example, chapter 12 is more streamlined, less complicated, and less expensive than chapter 11, which is better suited to the large corporate reorganization. In addition, few family farmers find chapter 13 to be advantageous, because it was designed for wage earners who have smaller debts than those facing family farmers. In chapter 12, Congress sought to combine the features of the Bankruptcy Code which can provide a framework for successful family farm reorganizations. At the time of the enactment of chapter 12, Congress could not be sure whether chapter 12 relief for the family farmer would be required indefinitely. Accordingly, the law (which first provided that no chapter 12 cases could be filed after September 30, 1993) currently provides that no cases may be filed under chapter 12 after July 1, 2000.

The Bankruptcy Code provides that only a family farmer with "regular annual income" may file a petition for relief under chapter 12. 11 U.S.C. §§ 101(18), 109(f). The purpose of this requirement is to ensure that the debtor's annual income is sufficiently stable and regular to permit the debtor to make payments under a chapter 12 plan. Allowance is made under chapter 12, however, for situations in which family farmers may have income that is seasonal in nature. Relief under this chapter is voluntary; thus, only the debtor may file a petition under chapter 12.

Chapter 13

Chapter 13 is designed for individuals with regular income who desire to pay their debts but are currently unable to do so. The purpose of chapter 13 is to enable financially distressed individual debtors, under court supervision and protection, to propose and carry out a repayment plan under which creditors are paid over an extended period of time. Under this chapter, debtors are permitted to repay creditors, in full or in part, in installments over a three-year period, during which time creditors are prohibited from starting or continuing collection efforts. A plan providing for payments over more than three years must be "for cause" and be approved by the court. In no case may a plan provide for payments over a period longer than five years. 11 U.S.C. § 1322(d).

Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual's unsecured debts are less than $269,250 and secured debts are less than $807,750. 11 U.S.C. § 109(e). A corporation or partnership may not be a chapter 13 debtor. Id.

An individual cannot file under chapter 13 or any other chapter if, during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d) and (e).

For more information, please visit www.mybankruptcycounseling.com

Nathan Dawson

Do You Really Need the Power of Money Management Software?

2008-06-30T00:30:00.003-07:00

I have been a loyal user of Quicken(R) for more years than I can remember. But a conversation the other day with my youngest son started me wondering whether or not I really need money management software.

The difference is what most banks have done with their online banking in the past few years.

It used to be that the only way you could keep track of your spending online, pay bills and determine where you had spent your money was to have a money management program.

However, today you can get most of that information you need from your bank. For example, we have two accounts at a bank I'll call First Denver National. When I sign on for online banking, I have a choice of Account Summary, which shows me how much money I have in each account. Bill Pay or Transfer.

If I select Account Summary and then click on the name of the account, I can see a list of all my deposits and withdrawals for the past 30 days.

When I click on a hyperlink titled "Spending Report," I can see exactly where I spent money for the past 30 days by category such as utilities or groceries.

If I choose Bill Pay, I can pay a bill once or create a recurring payment. Naturally, I have to set up payment information for each of my creditors but I have to do this only once. In my case, I have provided payment information for six of my creditors, including our local power company, satellite TV provider, telephone company and so forth. I have not established any recurring payments as all our bills vary from month to month.

When the monthly bill comes in from, say, our local power company, I open my online account, select Bill Pay, and then tell my bank which day I want the bill paid and for what amount. This all takes maybe 30 seconds.

Now, my money management program does offer many features that are not available through my bank. For example, I can quickly generate reports such as "Am I saving more or less?," "Has my spending changed in this category?," "What am I worth?", "How are my investments doing?," and "Did I meet my budget?" In addition, my program provides a lot of tax related information.

The problem is, I don't use these reports. I would guess that at least 90 percent of the information I need on a daily basis is available through my online accounts.

Don't get me wrong. Programs like Quicken and Microsoft Money(R) are powerful programs with a bevy of great features. However, before you invest in one of these programs, you need to ask yourself whether or not you really need all that power. Do you have a lot of investments you want to keep track of? Do you own a business? Do you use a tax program such as TurboTax? If the answer to any one of these questions is "yes," you probably need money management software. On the other hand, if you answered "no" to all three, you may be able to get by with just the free information available from your bank.

Before you make a final decision, there is one other factor to consider. In our case, the bank charges for both online banking and bill pay. The charge is about $10 a month or $120 a year. In comparison, a program such as Quicken Basic 2005 costs only $29.99 and includes both bill pay and online banking.* This means that if your bank changes you for either of these services, you might be better off buying a money management program - even if you never use many of its features.

*Some banks my charge for online banking even when you use a money management program. Be sure to talk with your bank before making a final decision.

(R)Quicken is a registered trademark of Intuit Corp.
(R)Microsoft Money is baa registered trademark of Microsoft Corporation.
All other registered names are the property of their respective owners.

Strategies for Success

2008-06-30T00:30:00.001-07:00

Holy Shenanigans! More STUFF?

Loosing one's business due to lack of personal control is a sad thing. I've watched many people do just exactly that. Recently, a friend told me that her only money is in her business account and she's been using it rather freely. The business is losing money. It's going under, because it can't support itself. She has another income, but she's not living within her means.

So, what is she buying with 'her money'? Frivolities, unnecessary trivialities, and 'bargains'. She and I have discussed the 'bargains' she buys. She's got more STUFF than any ten people NEED, and she still buys because it makes her 'feel good'. The fact of the matter is, she owns a big old building completely full of 'STUFF' she refuses to 'sell' because it's got personal value, and it's important to her, but the roof is falling in on the building, pigeons are in the building pooping on all of her prized possessions, so she buys more 'STUFF' to solve the problem. Ten dollar swimming pools to keep the rain from dripping onto her antique furniture and collectibles, plastic to cover them. Meanwhile the mice are eating through the upholstery and gnawing through the antique woods.

The reason she does this - is it provides her with emotional 'security'. As long as she has 'STUFF' she has 'security', she thinks. In the mean while, she's working at a job to support her 'STUFF' habit, and loosing her business, because she's wasting the money from her 'business', instead of using it to build a business that would eventually support her - if she didn't have all that 'STUFF' draining her income. She doesn't have security; she has 'STUFF' being ruined by the frivolous manner in which she is spending her money.

To say she is eccentric, actually only gives credence to her behavior. The fact of the manner is, she doesn't have the money to be eccentric. She has 'STUFF' which isn't going to get her anywhere, because her 'STUFF' is not appreciating, it's getting ruined. She has friends, but she doesn't listen to them, she has to have her 'STUFF'. I'm actually afraid my friend is going to be a lonely old person taking care of her 'STUFF' because she just can't quite realize that she needs to build relationships with people, and let go of her 'STUFF'.

One time, I even ask her about 'friends' and she responded she doesn't have anyone she can trust. I can understand why. She's worked her entire life to develop a relationship with her 'STUFF'. I consider her a friend, and I have gone the extra mile to make our friendship work. I wonder sometimes at my dedication to the friendship - because sometimes I feel like I'm working toward a dead end. Particularly when it comes to her business. I worked for nothing at times while I attempted to help her get her business up and running. I felt eventually it would be worth something to her. But, she feels if she buys me 'stuff' she's somehow making it worth my time to help her. Her values are misplaced, and her priorities are dysfunctional.

The saddest thing is, she's filling up her business with her 'STUFF' and when she looses the business, and she will loose her 'STUFF' too. Then what will she do? Her 'STUFF' isn't taken care of, it's just stashed there, taking up space and loosing value.

Every time I see her, I want to scream, "Holy Shenanigans, MORE STUFF!" But, I don't think she would understand the problem - EVEN then!!!

By Jan Verhoeff

Credit Card Debt - Watch Your Credit Report and Your Bill

2008-06-30T00:29:00.021-07:00

Most consumers are aware of the importance of their credit report. This document, offered to consumers and lenders by the three major credit bureaus, offers a fairly complete list of financial transactions and debts incurred by a consumer. Lenders examine the report, along with the associated FICO score, to determine whether a consumer is worthy of receiving additional credit or loans. What many consumers may not know is that credit card companies regularly check their credit reports, and unfavorable entries may result in a higher interest rate on their credit cards.

We have previously noted that many credit card companies employ something known as a "universal default clause" in their terms of service. This clause allows the company to raise interest rates on the customer's card if the customer pays bills late. A late payment to the phone company could result in a higher interest rate on the Visa card. Most companies also allow themselves the latitude to raise their customers' interest rates for any reason at all. With this in mind, the credit card companies tend to run occasional credit checks on their customers, often raising rates if they notice any activity that, in their opinion, makes the customer a higher risk. This might happen even if the customer has a history of paying his or her credit card bills on time.

The sorts of things that may create a "risky" client include taking out additional loans, additional credit cards, or building balances on existing cards to at or near their limits. The companies justify this activity by saying that consumers who do these things create greater risk for the lender, and these costs must be passed on to all of their customers. The problem for the customer is that these higher interest rates are often assigned without warning. The new rate applies to existing balances, too. An interest rate hike today could mean that the television you bought last fall has suddenly become more expensive.

Avoiding A Nightmare On Renovation Street

2008-06-30T00:29:00.019-07:00

You've decided you want a bigger, better and more desirable house. How do you determine when to renovate, what to do and importantly, how much will it cost and will we get our money back?

Unless you're in the building industry, most people are fairly naïve when it comes to making decisions about renovating. Poor choices can be costly, especially if you over-capitalise and spend too much money on the house of your dreams.

Michael Hoad of the Subiaco offices of real estate agents Paxton Hoad says many people make the mistake of not planning and fully costing their renovations.

"Any form of construction costs more than you think when you start and many people don't understand or underestimate what it costs to renovate."

"They make a lot of mistakes, often costly ones, such as why did I do that, I wish I made that smaller or bigger," he said.

Hoad also believes renovations date and what looked wonderful and up to date in 1985 may now look totally out of place.

"Everything has a life span and people really need to work out how long they're going to be in the house and the purpose for the renovations."

To avoid overcapitalising he recommends potential renovators look at the suburb and get a feel for what property is worth in the area before committing.

He gives the example of Subiaco, where land is tight, "if you've got a spot, in a half reasonable location, you'll get your money back and more."

He gives the example of owners in the suburb spending between $250,000 and $350,00 on renovations.

"The greatest increment is in the value of the land, houses generally depreciate offsetting increasing construction costs."

He also gives the example of a house valued at $400,000, where the transaction costs of moving cost more than $26,000 once agents fees and stamp duty are taken into account.

"Renovating is rewarding, it appeals to some people. Some people love it and others are not so creative," Hoad said.

Fremantle based architect, Philip Nikulinsky says many renovators get emotionally attached to a house and this is where they either overcapitalise or compromise the design of the renovation.

"A lot of people spend too much on the finishes and go overboard, that's when it becomes expensive."

"You've got to look at the end product. Every time you do something a bit different you're going to have to pay for it,' he said.

He says any significant renovation starts at around $120,000 and for older character style renovations owners should budget around $1,200 per square metre.

Nikulinsky's advice, "be rational about it, have nice finishes but don't go overboard."

This is a view backed up by builder Gary Matson of Subiaco Homes. He says it's often cheaper to demolish a house and start again.

"For 30s, 40s and 50s houses there's not a lot to retain, so you're spending a lot of money to achieve fairly little," he said.

In older areas he says its worth keeping the character, but again emphasises the importance of doing a budget and looking at ways of how money can be saved to avoid blowing out the budget.

Here are 8 tips for first time renovators.

1. Have your house valued. Get an independent view on how much your asset is worth. This will provide a benchmark on how much to spend.

2. Gather information about your area. Talk to real estate agents about how much properties in your area or street have been selling for. Get a feel for the market.

3. Work out what you want? What style of renovation do you want? In period or ultra-contemporary? What will you use the renovations for? What type of look do you want? This will determine the finishes and impact on your budget.

4. Plan your budget before you start. Work out how much you want to spend, how you will finance your renovations and what you expect to get for your money. Do you want to spend $6,000 on a kitchen or $26,000?

5. Do your sums and compare the costs of renovating versus selling.

6. Take a long hard look at the positives and negatives of each option in a logical and rational way.

7. Avoid becoming emotionally attached to your property or a design. Often this can cloud your views, costing too much money for your budget or impacting on the overall effect of the renovation. Take a rational approach to the decision of selling and moving versus renovating, or demolishing versus renovating.

8. Seek professional help. Get a range of quotes from builders, architects and those in the industry.

By Thomas Murrell MBA CSP

Resources to Help You Learn About and Protect Yourself from Identity Theft

2008-06-30T00:29:00.017-07:00

There is a new bill that is being passes, it is a very weak bill but if passed, it will prohibit using a social security number for identification purposes. This bill should take affect in 2006.

If you feel you have been a victim of identity fraud, contact the Department of Justice, consumer protection division. They offer mediation with identity theft; they also have a hot line for consumers that is available 8-5 Monday - Friday. They maintain a database of written complaints that goes back to 1998. They offer seminars to school, seniors or your group.

Be aware that 40 million crooks obtained credit card numbers this past year, "Be Suspicious". Also be aware that most identify theft is not reported, especially when it involves family members, so the statistics are off. These statistics show that consumers lost $5 billion last year when in actuality it is closer to $50 billion. There have been an estimated 9.9 million victims in America.

U.S. Postal Inspection Service
www.usps.com/postalinspectors

Federal Trade Commission
www.consumer.gov.idtheft
877-IDTHEFT or TTY - 202-326-2502

U.S. Secret Service
www.secretservice.gov

Department of Justice
www.usdoj.gov/criminal/fraud/idtheft

Federal Deposit Insurance Corporation
www.fdic.gov/consumers

Equifax
www.exuifax.com
800-525-6285

Experian
www.experian.com
888-397-3742

Trans union
www.transunion.com
800-680-7289

Social Security Administration Fraud Hotline
PO Box 17768
Baltimore, MD 21235
800-269-0271
www.socialsecurity.gov

North American Securities Agency Administrators (NASAA)
www.nasaa.org

Better Business Bureau
www.search.bbb.org/search.html

United States Postal Service
www.usps.com

National Do Not Call Registry
www.donotcall.gov
888-382-1222

Direct marketing Association Consumer Assistance
http://www.dmaconsumers.org/consumerassistance.html Registering by mail is FREE and registering online is $5.00. To remove your name from national mailing lists by mail:

Mail Preference Service
Direct Marketing Association
PO Box 643
Carmel, NY 10512

Identity Theft Resource Center
www.idtheftcenter.org
858-693-7935

International check service
800-526-5380

Telecheck
800-927-0755

Certegy Check Services
800-437-5120

Internet Fraud Complaint Center
http://www.ifccfbi.gov/index.asp

Fight Identity Theft
http://www.fightidentitytheft.com/

By Michelle Dunn

Budgeting -- The Critical Flaw That Causes Most Budgets to Fail

2008-06-30T00:29:00.015-07:00

Budgeting. It's a word we're all familiar with. Everyone knows what a budget is, right? Yet how many of us actually make and stick to a solid monthly budget? The truth is that most of us start out with the best of intentions, but an unexpected expense comes up and busts our budget. Then we give up and go back to juggling our finances and worrying about having too much month left at the end of the money. However, if you are striving to create a budget for the purpose of systematically paying off your debts, or to start a savings and investment program, then it's critical to develop a workable and realistic budget.

So what's the problem? Why do most of us fail at the simple task of creating a budget so we can live within our means? The simple truth is that most budgets don't work because they fail to account for irregular or variable expenses. Everyone knows how much their rent or mortgage payment is. It's the same amount month after month. If your rent is $1,000 per month, that's a "no-brainer." The same is true of many other fixed expenses, such as auto loan payments, cable TV subscriptions, insurance premiums, and so on. It's easy to budget for these expenses because the amounts don't change from one month to the next.

Besides expenses that are the exact same figure each month, there are numerous types of expenses that vary a little from one month to the next, yet we still have a pretty good idea what we spend each month. A good example is our grocery bill. Most of us have a fairly clear picture of how much we spend each week at the supermarket. So we can insert a realistic figure into our budget-in-progress and not be too far off the mark. Sure, the amounts may go up or down slightly each month, but we usually know the range we're dealing with. Other examples of this category include telephone bills, utility bills, and gasoline (although this one certainly seems to be going nowhere but up these days!).

The real culprit in busted budgets, however, is the variable or irregular expense. How much will you spend on car repairs over the next 12 months? What about medical bills? Home maintenance costs? It seems that bills for these types of expenses hit us out of left field, and there goes our budget. Before long, we're using food money to cover a new set of tires for our car, and the whole budget comes crashing down.

So what's the solution? There is no perfect answer to this problem. But we can come to a close approximation by using the simple technique of monthly averaging. Start by gathering 12 months' worth of checkbook registers, bank statements, and credit card statements. Write down (or enter into a spreadsheet) how much you spent each and every time your money went toward something that was not a fixed expense. Group these expenditures into categories, such as auto, home maintenance, clothes, etc. Don't try to break it down too far. What you want is a handful of useful categories. Then keep listing each of these expenses under their relevant categories for the full 12-month period.

When you are done with this exercise, you should have an excellent idea of your total annual expenditure for these variable expenses. For example, if you add up all the automobile repair or maintenance expenses for the year, and the figure comes to $1,200, then divide by 12 to get the result of $100 per month average. That's how much you need to allow in your monthly budget in order to build up enough reserves to handle an auto repair when it comes up. Again, this method isn't perfect, because an expense may come up that exceeds your estimated outlay, but at least it takes into account a closer approximation to reality than simply guessing, or worse, ignoring auto maintenance in your budgeting.

The trick here is to set up a separate savings account in which to set aside these "extra" funds. Let's say the "extra" $100 goes into the savings account for six months, and then you get hit with an auto repair for $400. You pull the money from your $600 savings that was purposely built up for this type of expense. This way, you're automatically setting aside amounts intended to cover each type of irregular expense that you encountered over the previous year.

Most people are shocked when they perform this 12-month analysis of irregular expenses, and it immediately becomes clear why their budget is always breaking down. This technique leads to the discipline necessary to recognize that "extra" money is seldom really extra. If we think we have our bills covered, and there is some cash burning a hole in our pocket, our tendency is to spend it on something fun. But if we know that there really is no cash left over, because we haven't yet set aside the extra $100 needed to keep our car on the road, then we'll be less inclined to spend it on pizza, beer, and movies.

Budgeting can be successfully accomplished by this technique of monthly averaging, especially if we consistently apply it year after year. As we move forward, our understanding of our true expenses becomes clearer and clearer, and we are no longer surprised by the occasional unexpected expense. The best way to implement this approach is to set up a regular savings program, where the amount you're setting aside to cover irregular expenses gets automatically deducted from your paycheck and forwarded to your savings account. If the money is deducted from your paycheck before you even see it, then you will be less tempted to skip this critical part of the budgeting process, and you will greatly increase the chances of making a budget work over the long term.

By Charles J. Phelan

How to Save for A Down Payment

2008-06-30T00:29:00.013-07:00

Saving for a Down Payment is hard work, so it's a good idea to really want to own your own home by the time you begin your Savings Account. It's difficult to turn down a weekend in the Bahamas (or Downtown at the Clubs!) when you don't have a definite goal.

Step One: Get a Job! This will definitely help you to find the money to save! ha,ha!

Step Two: Keep the Job -- longevity on the Job is a major factor the Financial Institutions look for when your trying to qualify for a Mortgage.

Step Three: Go over your spending habits with a fine tooth comb. (Please, this is strictly figurative! No yucky combs on your Financial Papers!) Ask yourself some very serious questions -- Do you really need to spend $5.00 for a cup of coffee five times a day? Even though it's fabulously delicious?? Even one cup at $3.25/day is $1186.25 a year. Five cups at price per day would be $5931,25. That's a lot of money, and often enough for a Down Payment.

It's a good idea to right down everything you actually purchase -- lottery tickets, coffee, lunches, snacks, clothes you don't really need -- it's the 'little incidentals' that really add up.

Step Four: Start a separate Bank Account, just for your 'house-to-be'. Anything you can put in there is good -- if you can manage $25.00/week, that's $1300. a year; $50./week gets you $2,600. a year, and if you can swing a $100./week, that's $5200. in a year.

You'll be shocked at how easy it is to piddle away $100. on all sorts of little things -- when you make the big decision to Buy Your Own Place, all of a sudden, you'll find yourself prioritizing...and that doesn't mean you have to slap your own hand to stop yourself from frivilous spending (which, sadly enough, happens to be the most fun type of spending! ha,ha!). You'll just make the decision one day that you need to Own Your Own Home so you can 1) Make Money, 2) Not hand over your money and have nothing to show for it at the end of the day -- say, Monday...yuff, yuff! 3) Secure your Future.

Step Five: Find out how much you can borrow for your new place. Click on-line so you can quickly determine this info. Especially if you're new to the Real Estate game, it's less stressful than heading in to the Bank, plus you don't have to make a special appointment!

Step Six: Start Looking for Your New Place! Check out the great new Condos that are all over the place, now. They have really good Payment Plans, and if you make your Purchase before they're built, you'll score a great deal.

Contact a Realtor to find out what's available in your Price Range -- they're there to help you, and can really help to narrow down the field and get you into something you can afford and love.

Remember that you don't have to live anywhere forever -- a lot of people fall into the trap that they can't buy because they're not sure where they'll be 5 or 10 years from now... even if you only have a year that you're sure about, go ahead and Buy. You can always sell it, and you won't lose money on Real Estate -- maybe you'll walk away with an extra $10,000. - $50,000. from the Property Values going up! Now, that ain't bad! Not bad at all!

Here's a little Tip for Women: You know, it's more common than you might think that a lot of women are 'waiting for a man' before they even start to think about buying a place. Forget that! Men, Schmen! Go get it yourself, Girl! And keep it until you're sure you really like him... In the 'olden days', like when I was in my twenties in the early 80's (!), there was a weird thing that if a woman had her own place, then she was putting out a message that 'she didn't need a man'..., and so a lot of women would wait until marriage before attempting to purchase a home.

Thank God those days are gone! Puh-leeease! It's always nice to have a man, but women don't technically need them ... for any length of time, anyway... and you can go ahead and get your own place without waiting for anyone. You can be comfy and cozy on your own no matter who you are... you can always sell it later and buy something different together, which is a healthier to do for a new relationship, anyway, right??

So start Saving and before you know it, you'll be moving into your very own home. Then you can start saving up to go to the Bahamas, and go dancing on the Island!

By Ailsa Forshaw

The Good and the Bad of Money Management

2008-06-30T00:29:00.011-07:00

Good money management needn't be difficult. In fact, there a number of easy steps recommended by most financial professionals to help manage your finances better.

Pay your bills on time to avoid late fees.

Don't wait until the red bill turns up! Make notes of due dates in your diary and remember to allow extra time for postal payments to reach the recipient.

Pay more than the minimum on your credit cards.

If you are paid weekly then pay a little each week rather than waiting until the monthly statement arrives.

Read your bank statement regularly.

Keep an eye on all your incomings and outgoings.

Check your credit report annually for accuracy.

These days identity theft is very common so you need to make sure you

are not paying someone else's charges.

Look around for and switch to credit cards with lower rates.

Many credit card companies offer low interest rates for transferring balances from another card.

Follow a monthly budget.

This may be easier said than done but if you are sensible about your outgoings then you will find managing your money much easier.

However sometimes things can go wrong. We all want to be able to be in control of our finances but we often make mistakes without realizing it. If you are concerned that you are using bad money management then you should always seek advice from a financial professional.

Here are some of the most common bad money management errors:

Not paying your bills on time

Keeping high rate credit cards

Neglecting to put aside emergency funds

Leaving preparing a will until it is too late

Not reading your bank statement carefully

Neglecting to contribute to a retirement account

Not checking your credit report annually for accuracy

Only paying the minimum monthly payment on your credit cards

Buying the first insurance you come across without shopping around

Failing to adjust your W-4 annually to make sure you are not paying too much

If you address the above issues wherever possible then you will no longer be guilty of bad money management and you may be pleasantly surprised how much better off you are financially in the long term.

By Lorna Mclaren

Why Live Frugally

2008-06-30T00:29:00.009-07:00

What is it about being frugal, why do it at all? Actually, some people don't do it at all, they have decided that what they want and desire is what they are going to get and they feel they deserve it. I have no trouble with that; more power to ya, live long and prosper and may you die with the most toys. However, for me, I find little value in the things around me.

When I was a teenager, things were my identity. However, as I have gotten older and through one situation or another I have learned to separate myself from the items in my home. Let me give you an example; quite a few years ago I was given a leather jacket, I always wanted one because I thought they were cool and thus, I would be cool. I got it and I loved, I loved it so much I rarely wore it for fear of losing it or ruining it beyond repair. I wanted it to stay 'new' and always carry that memory I had of when I first received it and the person who gave it to me. As the years passed and I was in some hard times, I needed money for necessities and didn't know what to do, until I saw the jacket in the closet in all it's shiny newness and cleanliness. "I could get some money for that", I thought. I proceeded to take it to the pawnshop (this was before eBay) and get A LOT less than what in my mind it was worth to me. It killed me to take that jacket in, but I had to and to do it, I had to distance myself from the experience so I could get it done. And surprisingly, I still have the memory of receiving that jacket with no loss of value in my mind.

Since that time, through losses of one thing or another, I learned that my own self worth or value isn't based on what I have around me. A side note: I in NO way think I am superior than the woman that drives the jag to her 5 bedroom home, in fact I hope she is happy with her station in life and I wish her well. But for me, I will never aspire to that.

I guess when it comes down to being frugal or not, the question needs to be asked, "Does this fulfill me?" For myself less is more in my world; less to worry about, less to find space for, less to keep up. But, again, that's not everyone's cup of tea. Your level of tolerance for less may be higher than mine. I could easily whittle down my needs and wants, throw them in the car and go. That is how little I really need, besides a roof over my head and a steady stream of income.

Frugal living isn't a dreary task, I think we need to reward ourselves here and there. My luxury is going to the movies and seeing the blockbuster action movies and dramas. But doing that regularly would no longer be a treat but become a necessity if I could think up enough excuses.

Frugality in my opinion is also about moderation. Moderation is key no matter if I am eating, drinking, watching TV, going to movies or exercising. Excess is what happens when I stop controlling my life and let something else run it. It's about keeping things in check, whether it's my reasoning for buying and item or getting caught up in the good feeling a TV commercial gives me. (By the way, I have never gotten good cell phone service in the boonies like the ads show!)

Frugal living is temporary for some until they get back on their feet, for others it is a day to day necessity for who knows how long and for myself and others it is a voluntary decision, wherever you fit in there.

By Dawn Cadwell

7 Simple Ways To Save Money

2008-06-30T00:29:00.007-07:00

Each of us knows how to spend money, but do we really know how to save our money? No, I am not necessarily talking about setting aside funds for an investments purposes - a good thing - but saving money on everyday items. Here are seven simple ways you can save money:

1. Use Appliances That Are Energy Efficient. Chances are your old refrigerator or washer is a pig on fuel. When shopping for a new unit, make sure that the energy rating is high. However, do not pay hundreds of extra dollars for a product if only a slightly higher energy rating is achieved. Instead, find out which model gives to you the highest possible energy rating for the buck.

2. Click Coupons. You can save money on shopping by clipping coupons. Many stores will even double or triple manufacturers' coupons up to a certain amount as an added "come on" to get you to shop.

3. Shop The Wholesale Clubs. BJs, Sam's Club, and Costco all offer savings generally 10-30% lower than the supermarkets. They take coupons too.

4. Get Free Samples. Manufacturers enjoy giving away samples of their products. Sometimes all it takes is a letter or an email to the appropriate department and your freebie will arrive in the mail in the form of a product or as a coupon allowing you to purchase the item locally for free.

5. Go To The Library. Barnes and Noble and Borders offer a wide selection of books to their customers. However, you may be able to find that same title at your free public library. If not, ask a librarian if they would order the book for you. Hey, a free book is better than the $25 you will pay for a bestseller!

6. Shop And Compare. The internet allows consumers the opportunity to shop and compare on almost any product sold anywhere. Find the best price and order online if the items is cheaper than ordering in person. Don't forget to take into consideration shipping, handling, and taxes when ordering via the web!

7. Reuse And Recycle. Chances are the item you are throwing away can be used again. If you definitely have no use for the item sell it at a garage sale and pocket the proceeds. In any case, you are contributing to a sound environment by not sending your unused good to the trash dump.

There are countless ways for you to save even beyond these seven. You need not be a skinflint to reap true benefits either, so start with these seven and come up with another seven ways for you to save too.

Saving Dimes Can Go a Long Way

2008-06-30T00:29:00.005-07:00

On the other hand, there are those people who are saving dimes and every other cent. Perhaps its because they hate the clutter of change but want to get rid of it instead of letting it accumulate elsewhere or still rely on the fact that change has value and should be used accordingly. For those who find it hard to save, start with a small piggy bank and contribute any lose change to that bank and let it grow. Change that you were going to use to buy a snack from the vending machine or soda, use to contribute to your piggy bank. Bring snacks and drinks from home to save on cash.

Saving dimes may seem difficult to do but as stated before simply start contributing any lose change into a piggy bank. Then take on the next step. If you haven't created a personalized budget for yourself, now is the time to do so. A personalized budget lets you know how much money you have going out and how much money you have going in based on a monthly budget. Included in money going out will be all expenses for the month from mortgage/rent, utilities, food, gas, etc, and money that you are contributing to your savings. Income sources are listed under money coming in. Ideally you'd like to have more money coming in then going out. If you have more money going out, you are likely in debt, or on your way to debt.

If you are realizing that your expenses are outweighing your income then you need to learn to cut back on certain expenses. Make your lunch inside of buying it everyday, rent movies instead of going to the movies, or walk instead of drive if feasible.

In order to prevent yourself from spending your paycheck once you receive it, see if you can have a portion of it deducted and put into a separate account that way you don't even see it and therefore wont spend it. This way it seems as if you are working to pay yourself first, opposed to just working to pay your bills. Always remember in case an emergency arises you then have this money to turn to.

Do you have goals in life? Think back to your piggy bank scenario. All that time spent saving dimes can be put towards something, even if it's only a small chunk of money, it can then be added to your savings account periodically. Aim to achieve your goals, and once you do, you will feel the success from accomplishing them and be able to set new goals to strive for.

So perhaps you don't have any goals at the moment that involves taking a trip, getting out of debt, saving for a new house or so forth but think about why it's important to save money regardless.

What happens if your car breaks down, you need a new roof, or need to pay out of the pocket medical expenses? Most people don't have cash easily accessible for these situations so that's why it's important to have an emergency cushion available to be able to afford these expenses and avoid debt, so start saving dimes today!

Are you planning on retiring someday, if so you'll need to set aside some money to be able to live comfortably in your golden years.

Today people are living longer due to advances in medicine and public health which means if you live longer you are going to need more money to get by.

Although social security may provide you with some income in your future, it was never intended to be a primary source of income.

Education isn't getting cheaper; the cost of private and public education is increasing every year.

Don't put yourself at risk. What happens if you need a root canal, surgery, or whatever the personal case may be you don't want to be forced to take out a loan or put yourself in debt just to take care of your well being.

So with that said, start saving dimes today. Start small by saving dimes and then work your way up to a savings account, which will gain more interest with the more money you contribute.

By Katie Spencer

The Magic Of Compound Interest

2008-06-30T00:29:00.003-07:00

Christians are called to be good stewards of God's resources. A steward can be described as someone who manages the resources of another. "The earth is the Lord's and all that is in it, the world and those who dwell therein"-Psalms 24:1 (The New English Bible). To effectively manage God's financial resources, it helps to have some understanding of modern day financial concepts, strategies, and mathematical formulas. Compound interest is a great ally in catapulting you toward achieving your financial goals. Through an understanding of compound interest, God can pour out a blessing upon you, which you will not be able to measure! Albert Einstein once called compound interest "the world's most impressive invention" and dubbed it the "eighth wonder of the world." Compound interest means all the money you've invested earns interest and then the combined amount of the original investments plus your interest earns more interest. Compounding means interest added to interest. Compound interest does not produce linear growth like the pattern 1, 2, 3, 4, 5, 6, and so on; it produces geometric growth through compounding like the pattern 1, 2, 4, 8, 16, 32, and so on. Usually, the more frequently your money compounds when earning interest, the better. For example, daily compounding is normally better than monthly compounding, which is better than quarterly compounding, which is better than yearly compounding.

A basic formula for compound interest is as follows:

FV = ID (1 + R)T, then FV - ID

Where:
FV = Future Value
ID = Initial Deposit
R = Rate (interest rate earned)
T = Time (number of years invested)

Assuming the following investment--$10,000 Initial Deposit, 6% interest Rate, 5-year Time period, the math would work as follows:

FV = $10,000.00 x (1 + 0.06)5

Formula results by year are as follows:

Year 1 $10,000. 00 x (1 + 0.06)1 = $10,600.00

Year 2 $10,600. 00 x (1 + 0.06)2 = $11,236.00

Year 3 $11,236. 00 x (1 + 0.06)3 = $11,910.16

Year 4 $11,910. 16 x (1 + 0.06)4 = $12,624.77

Year 5 $12,624. 77 x (1 + 0.06)5 = $13,382.26.

Then FV - ID = $13,382.26 - $10,000.00 = $3,382.26 (Total Interest Earned).

The effect of the individual parts of the formula in combination with each other produces synergistic results in the outcome that are greater than the sum of its parts individually. In other words, small increases in any of the components can have a dramatic incremental effect on the total compound interest earned.

Another useful tool in approximating the magic of compounding is the "Rule of 72." Albert Einstein is credited with discovering the compound interest Rule of 72 and said, "It is the greatest mathematical discovery of all time." The Rule of 72 is a mathematical way of approximating the number of years it takes an investment to double in value. You estimate the number of years for an investment to double by dividing 72 by the annual rate of return. For example, if you expect to earn a 10% return on your $10,000 investment, then 72 divided by 10 = 7.2 years for your investment to double in value to $20,000. Conversely, if you expect your $10,000 investment to double in 7.2 years and you want to know the interest rate needed, you simply take 72 divided by 7.2 = 10% interest. You can even use it to compare stock market interest rate returns to other investments. For example, assume you are looking at lots with a real estate agent. The agent tells you the properties have doubled in value during the last 14 years. You could get a quick estimate of the increase per year in value by doing the following math: 72 divided by 14 = 5.14% per year.

There is one formula that is infinitely more important than even the "Rule of 72": "1" cross + "3" nails = "4" given. Praise God!

Bill G. Page is the author of Making Money Work: A Christian Guide For Personal Finance. This book explains the "Rule of 72" and many other financial concepts. It includes a CD ROM so you can easily calculate compound interest and lots of other complicated financial formulas. The book can be ordered from www.MakingMoneyWork.us or you may request the book from your local Christian bookstore-available to retail stores through Spring Arbor and Appalachian Christian book distributors beginning in September 2005.

This article is adapted from Making Money Work: A Christian Guide For Personal Finance with permission of Willie Glenn Page, Inc. Copyright 2005.

By Bill G. Page

How to Choose Wisely a Credit Card

2008-06-30T00:29:00.001-07:00

So, you've made the decision to apply for a credit card. It's an important step for any consumer. Whether this is your first application in an effort to establish your credit, an addition to your existing credit card portfolio, or a plan to re-establish unsatisfactory credit, it is critical to research and fully understand the plans associated with various types of credit cards.

Before beginning the research process, consider and decide how you will use your new credit card. Will you be using the card for everyday purchases, or will you be taking an exotic vacation? Do you plan to pay the balance in full each month, or do you prefer to make monthly payments? Since APRs (annual percentage rates) vary for each card and respective payment plan, it's important to make these types of decisions before the credit card selection and application process.

Obtaining credit is not free, but can be economical and less costly if you understand the finance charges (the cost you pay for using a credit card). Grace periods may help reduce certain finance charges, depending on the individual credit card company offer. A grace period is the number of days you are given to pay your credit card balance in full before you are charged a finance charge. In most cases, finance charges are applied to new purchases only. (Cash advance finance charges are usually imposed immediately following the advance.)

Familiarize yourself with the annual percentage rate. An annual percentage rate represents the interest rate associated with using your credit card for purchases and cash advances. The APR is often a determining factor for many consumers when selecting and applying for a credit card. Credit card companies may vary their APRs, offering a different rate for purchases, cash advances, introductory periods and penalties. Traditionally, purchases carry the lowest APR. An exception may be an introductory APR for new purchases or balance transfers that may be offered at 0% for qualified applicants.

Many credit card companies competing for your business may offer a lower introductory APR of 0% for a specified period, for example, six months. At the end of this specified period, the APR will change to a pre-determined APR. (This information will be included in the credit card offer.) Therefore, it's very important to understand the APR following the introductory rate period, particularly if you will be using the card for large purchases and / or balance transfers. Also look for companies offering 0% interest on balance transfers with no time limit. Cash advances usually carry a slightly higher APR than purchases, but will vary for each credit card company.

An annual fee is another cost associated with using a credit card. Many think of annual fees in this way, the greater the APR, the lesser the annual fee. While this may be true in some cases, these fees are typically charged annually and usually will be subject to finance charges. Some special credit card offers, such as unsecured or unlimited credit card types and lines, may impose a higher annual fee.

In addition to a possible annual fee, many credit card companies impose charges through other fees such as late payment penalties, over limit fees and cash advance fees.

With the growing competition amongst credit card providers, new plans such as rewards and points programs are offered as incentives. These programs may offer earned 'points' or privileges for consumer items, travel (vacations and frequent flier miles) and other premium services, but oftentimes impose an enrollment participation fee in addition to any annual credit card fee. If you are a frequent traveler, these special programs and incentives may appeal to your taste.

When reviewing each credit card offer, look for the specific information outlined here to best determine the most appropriate card type and plan for your needs. You may elect to use a comparison chart of your own when considering credit card programs to more carefully select the best offer. Using the categories listed above (APR, finance charge, grace period, annual fee, etc.) create a left-hand column containing specific information about each category. Then, create a column for each credit card offer you are considering. This method will afford you a side-by-side, line item comparison to assist you in making a final decision.

Accessing Funds You Never Knew You Had- Household Utilities and Mortgage Expense Reduction Plan

2008-06-30T00:28:00.019-07:00

For most of us the process of getting out of debt and pursuing a venture that would create an income stream leading to early retirement seems just a pipe dream. It goes without saying; it takes money to make money. Most of us have had our eye on pursuing a stock, invention patent, greater education or a small business only to have our goals cut short because of lack of funds. The fact is we may have access to more funds than we realize. In this article we will discuss the three keys to having your money make more money sooner than later. The three keys are:

Reducing Expenses By Cutting Costs

Reevaluating Your Financial Situation

Freeing Up Financing Funds

Channeling Funds Toward Your Goal

Reducing Expenses By Cutting Costs

The key to finding money is freeing up funds from current expenses. We are all accustomed to doing things like turning out the lights, cutting back on gasoline consumption or reducing heating and air use. We use coupons to cut shopping bills in half and do the two for one meal deal whenever possible. But did you know that if you smoke a pack of cigarettes a day, it is costing you almost $3000 a year. Over 10 years that $30,000 dollars. What could you do with all that money? Improve the quality of life.

Reevaluating Your Financial Situation

Take a closer look at your financial situation and goals. Where are you putting your money right now? Did you use it to sink a ship? That is, have you sunk a fortune in stocks that have done nothing but consumed your hard earned money or worse gone belly up? If so move your money to a more secure haven such as everyday household items in the over the counter drugs or computer-tech sector.

Enter A Debt Settlement Agreement

Do you have a lot of debt? Think about making a settlement agreement with your debtors. In many cases debtors will cut interest and penalty charges off you bill if you agree to pay the bill off completely. For bills of $10,000 or more you may be able to cut costs by as much as $3000 on settlement.

Freeing Up Financing Funds

We often miss a big expense guzzler, our home mortgage. Currently the average homeowner is paying 20 - 30% more in interest rate charges than is necessary. That represents one third of interest paid out over the life of the loan. These are enormous mortgage amounts that could be saved and channeled toward other essential uses such as making more money.

When refinancing a homeowner discovers that he may be able to reduce mortgage payments by almost half the amount and save tens of thousands of dollars over the life of the loan. The following chart lists best interest rates of the day. Compare them to your current mortgage rate and note the difference when opting to refinance your home loan.

Best Mortgage Rate Chart

30 Year Fixed 5.46% 0.52 5.57% -0.010% 15 Year Fixed 5.04% 0.57 5.25% -0.040% 30 Year Fixed Jumbo 5.73% 0.62 5.84% -0.010% 15 Year Fixed Jumbo 5.29% 0.61 5.48% -0.010% 5 Year Balloon 5.36% 0.83 5.93% 0.000% 7 Year Balloon 5.55% 0.61 5.93% -0.060% 1/1 ARM 4.42% 0.65 6.24% 0.060% 3/1 ARM 4.77% 0.64 5.90% -0.060% 5/1 ARM 5.01% 0.58 5.80% -0.010% 1/1 Jumbo ARM 4.19% 0.87 6.28% -0.230% 3/1 Jumbo ARM 4.92% 0.75 6.02% -0.120% 5/1 Jumbo ARM 5.12% 0.65 5.98% -0.040% FHA 30 Year Fixed 5.35% 0.51 5.46% -0.020% FHA 1 Yr ARM 4.46% 0.60 6.39% 0.040% VA 30 Year Fixed 5.44% 0.41 5.54% 0.000%

example of best average mortgage rates as published in 2005

Freeing Up Funds With A Home Equity Loan

You can free up funds to invest by taking out a home equity loan. For example, a $200,000 home with a $125,000 mortgage has $75,000 in equity. Now using a mortgage payment calculation tool such as is found at www.bcpl.net/~ibcnet/ compare mortgage payments at current rates with he mortgage rates in the chart. Significant savings? If so, you see the value of opting for home loan refinancing.

Many who choose to refinance their home also choose the cash out home refinancing program. This not only frees up funds per month but also puts immediate cash in hand for other purposes such as investing in stocks and bonds or pursuing a business venture or some other income generating pursuit.

$600 - $800 A Month Saved Refinancing

One client saved over $800 a month, that's almost a $10,000 savings per year. Another saved over $600 per month with the cash out refinancing program and got $75,000 in cash to pursue an investment property.

Channeling Funds Toward Your Goal

Once the loan is funded borrowers can put a percentage of the funds into a small business venture or stock investment. Soon the money is growing more money. Now you want to use your profits to pay down your home mortgage. Over time you will be able to free yourself from mortgage debt much sooner and save even more money, channeling it back into your business or retirement investment funds. And that is the key to building wealth and raising the quality of life another notch.

By Mark Askew

One Income Source Is Not Enough!

2008-06-30T00:28:00.017-07:00

My personal opinion is that in today's new economy, it is wise to have multiple income streams. Reliance on one income source poses a risk to individuals, entrepreneurs, and even large corporations. A single-source income stream, rather it comes from a job, a million-dollar customer, or a highly targeted market segment can dry up for any number of reasons.

I live in Michigan where many people derive their income from the auto industry. A downturn in that industry can affect masses of people in various industries because their critical source-point is the auto industry. In fact, before I got laid off from IBM last year, Ford was their biggest client here in Michigan. As Ford started making drastic cuts, so did IBM and many other IT consulting companies. This trend happened over and over again and our mid-western economy has still not fully recovered.

People still assume that a job provides security but the reality of unemployment tells an entirely different story. I was laid off for 7 months and I had plenty of time to come to terms with my own financial vulnerability. Financial consultants have always advised a person to have 6 months income saved up and as sound as this advice is, many people don't even have 2 months income saved up; they are actually living from paycheck to paycheck.

Over my 20+ year career, I've gone through the down-sizing fiasco more than 5 times and I would be quite foolish to pretend that I can depend on a job to be there just because I need the money. Jobs are good?they keep the economy flowing?people get paid?people spend money?the money flows in and out and everybody's happy. But?and this is a big BUT, jobs cannot be viewed as the single source of personal long-term security. Our view of jobs have to change to match the reality and the reality is - we'd better learn to manage our money well and we'd better learn to generate income from multiple sources if we want to create financial security.

There are a few people who don't have to worry about money now or in the future. They have money handled; their income is quite substantial, their lifestyle is affordable, their savings, investments, and retirement plans are unassailable. Most wealthy people cannot even claim this kind of stability because their lifestyles are exorbitant and out of control. But there are people who simply have no money worries; they made the right career choice, they love their work, they handle their career and money like an expert. How many people do you know that fall into this category? Not very many, right.

It's true, money doesn't buy happiness but don't let anyone trick you into believing that you can have a quality life without certain financial means. In western society, having a certain income is essential to survival. I know everyone who reads this article may not be suited to join my business but everyone who is looking for way to give themselves some financial breathing room should consider three things, controlling the money going out, diversifying the income streams, and increasing the money coming in. Starting a part-time home-based business is an excellent way to do this. This is one of very few ways that a person can legitimately reduce their tax liabilities and take the money they save and use it to make more money.

By Robin Harris

Debt Management - More Ways to Save on Gas Consumption

2008-06-30T00:28:00.015-07:00

The price of gas continues to climb, and with continued uncertainty in the Middle East, they will probably continue to do so. In California and elsewhere, prices for some grades of gas have now reached the previously unthinkable three dollars a gallon. Granted, that is lower than the inflation-adjusted prices of early 1981, but that doesn't make anyone feel better when they've just paid nearly $100 to fill the tank of their sport utility vehicle.

In a previous article, we offered some solutions as to how the average consumer can either save on gas prices or use less gas. These tips included using credit cards with cashback rebates, keeping your car tuned and tires inflated, and keeping the car washed and waxed, which reduces drag. Here are a few additional tips which will help ease the strain of filling your tank.

Empty your trunk. Some people drive around with their trunks nearly full with things that just don't need to be there. Sure, you need a jack and a spare, but do you really need a toolbox, golf clubs, and that pile of old clothes you've been meaning to drop off at the Salvation Army? Any extra weight you carry requires additional energy to make your car or SUV move. Lighten the load and your engine won't work as hard or use as much fuel.

Drive efficiently. That means accelerating gradually, rather than speeding out of an intersection. Your car uses fuel more effectively when you gradually accelerate. Once you achieve your desired speed, keep it steady, using cruise control if you have it. Speeding up and slowing down only uses more gas.

Shift appropriately if you're driving a car with a manual transmission. Shift at the factory recommended shift points, rather than running your tachometer all the way up before shifting. Your car runs best within a fairly narrow RPM range.

Each of these tips offers a small saving in fuel consumption. When combined with others, they add up and can produce significant savings. If you can increase your fuel consumption by just two miles per gallon, you can save $30-40 on a 1000-mile trip in your SUV. When you're paying $3.09 per gallon, every penny counts.

©Copyright 2005 by Retro Marketing

Five Secrets for Long-term Financial Success

2008-06-30T00:28:00.013-07:00

Future financial success is not a guarantee that any one of us can rely upon, no matter how wealthy we are now or intend to become.

There are however five future proofing financial steps that we can take to protect our current financial status, improve our future financial prospects and secure our long-term financial success.

1) Know The Different Between Good Debt & Bad Debt

Bad debt is any debt that accrues interest month after month on outstanding balances and includes credit card debt of course, which is now the most common type of bad debt that we are all burdened with. Other examples of bad debt include store card debt, home secured loans other than your mortgage and any money borrowed from lenders dealing with high risk borrowers as they charge the highest rates of interest and have the most restrictive and inflexible terms and conditions.

Good debt is really only your mortgage, although some people would argue with me and include car finance in this category even though a car is not an essential item for most people - if we're honest with ourselves! Good debt in the form of your mortgage enables you to afford the roof over your head and for most of us it is the only way we will ever be able to afford a home.

A mortgage with an attractive and affordable interest rate will of course cost you money but at the same time it enables you to purchase a capital growth appreciating asset that you can later sell and redeem cash from or pass to your heirs upon death and that will be a positively tangible asset to benefit their financial futures.

2) Get Out Of Bad Debt

Examine all of the bad debt you have and prioritize the amounts to be paid off first by beginning with the most expensive debt in interest and charge terms. Every month pay off as much as you can afford from your number one debt and proceed with this approach right through every bad debt you have until you have no outstanding amounts remaining.

Then - take on no new bad debt! Keep out of credit card and loan hell.

3) Pay Off Your Good Debt

Having worked hard for as long as it takes to pay off all of your bad debt you can now turn your attention to your mortgage - some mortgage lenders penalize for early repayment so consider re-mortgaging if you can get a better or same rate of interest and you won't incur arrangement fees, or try to arrange new terms with your current lender that will allow you to make regular lump sum repayments.

The shorter the life of your debt the less interest you will pay and the sooner you will own your own home - your most significant financial asset - outright. This will give you massive security and also free you up financially to enjoy life to the full and save more towards your retirement.

4) Save For Retirement

Most governments of the civilized world reward their citizens with tax breaks on retirement savings made. Furthermore many conscientious employers add to an employee's contribution to a works pension scheme. Find out what benefits you're entitled to and get a retirement savings plan in place immediately. It is never too early to start saving for retirement.

Whilst paying off your debt is an essential step on the road to long-term financial success, so ensuring your future is secured through saving today for your own financial wellbeing is an essential step. After all, if you don't look after your best interests, no one else will.

Put as much as you can possibly afford each month into the best savings or investment product to suit your requirements and circumstances - and start today.

5) Protect Your Personal & Financial Assets

Insure your life, your family, your health, your business and your home - then use the services and advice of qualified taxation and trust professionals to find out whether there are legal and legitimate ways in which you can reduce your overall taxation burden and your estate's future inheritance or death taxation burden.

Look after your personal interests today and ensure that your financial assets are protected for life.

By Rhiannon Williamson

Government Grants - Beware of Scams

2008-06-30T00:28:00.011-07:00

As the saying goes: "Buyer Beware". If you see ads claiming you qualify to receive a "free grant" for education, to start a home business or to payoff unpaid bills, be wary. Scam artists will claim your grant application is guaranteed to be accepted and approved, and you never have to repay the money. But the Federal Trade Commission (FTC) warns that these grant offers are often a scam. The grant isn't free, nor is it guaranteed, nor is a refund.

According to the FTC, some scam artists market "free grants" in classified ads and even provide a toll free phone number. Here's an example of what happens when you call:

A company representative asks non-threatening, simple questions to supposedly determine if you qualify to receive a grant. The representative then acts as if he/she is checking your eligibility, and then congratulates you as being eligible. But for you to get the grant information from them, they will charge you a processing fee. Although they will promise you that the grant is guaranteed or you can get your money back, the truth is far different.

They will tell you that the processing fee is for finding a grant source and sending you the appropriate application package in the mail. But you won't receive an application or a source. Instead they send you a list of agencies and foundations which you must write and request an application. In order to get your refund, you must apply to; and be rejected by, all these agencies within 90 days.

Most grantors don't award grants to individuals for personal needs. Generally grants are to serve mankind and communities as a whole, such as job expansion, training under-employed youth, preserving history, funding charities, art museums, or for researching medical issues. So, even if you're in a financial hardship, or you may be an unwed mother, a single parent, a minority, etc, you're not likely to approved. And you may as well forget about getting a refund from the grant "broker" because the conditions for a refund are nearly impossible, requiring you to apply at every grantor on the list they provided to you and be denied by each resource within 90 days. If even one resource doesn't reject you within the first 90 days, you won't get your refund, nor will you get it back if the rejections are past the 90 day requirement.

If you're thinking about applying for a grant, remember that the applications are available to you for free and that anyone who guarantees you a grant is likely to be interested in their own financial gain, not yours. If you think you may have been a victim of a grant scam, file a complaint with the FTC by visiting www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.

Don't fall for grant scams. Use the free resources available to you at public libraries, on the internet, and at www.creditfederal.com/government-grant.html

by Toni Phelps

Basic Bank Accounts Failing the Basic Needs of Consumers

2008-06-30T00:28:00.009-07:00

The lists of bank and savings accounts that are available to most people are bewildering. A quick look at a comparison site like Moneynet or Moneyfacts will reveal thousands of different products. Unfortunately many of these accounts are not accessible for anyone with either a poor or even no credit history.

Research carried out for the National Consumer Council (NCC) reveals "that the poor pay more, or get less, for essential goods and services? having a bank account can be a gateway to other products and services, such as affordable credit and insurance". To help counteract this problem of financial exclusion, the government has tried to initiate the introduction of basic bank accounts for the least well off. The NCC has however warned that, "the current model of basic bank accounts, introduced by government in 2000 in an attempt to enable all low-income consumers to access banking services, is not delivering."

The new basic bank accounts were introduced as part of a wider push towards 'universal banking' and corresponded with the introduction of direct payment of social security benefits to bank accounts as well as the Post Office Card Account (POCA). The plan was that these accounts would also help their users by letting them set up direct debits to pay their utility bills, and so keep better track of their finances from week to week.

The accounts were originally designed to let people save and withdraw money, but in an effort to prevent extending any existing debts and stopping the accounts from becoming overdrawn, they don't offer cheque books, overdrafts or other credit facilities. The accounts were intended for those with no credit history who might not meet the banks' criteria for opening a standard current account. The accounts features typically include the ability for payments, for example pensions and benefits, to be credited direct to the account, withdrawals by plastic card through cash machines and the facility to pay bills by direct debit.

The problems experienced seem to be partly because the accounts do not always help those with a small weekly income to deal with the unpredictable gaps which can occur in wages, benefits or spending. Automated monthly direct debit payments for goods and services can prove of little use to many on low weekly based incomes. Those paid on a week by week basis, expressed a preference for weekly cash based, rather than monthly direct debit, budgeting options and felt that bank accounts with direct debit facilities would not provide them any advantages. By using cash instead of a bank account, they found they could juggle payments easier, and avoid punitive additional bank charges if they did not have the funds to hand, to cover an outgoing debit payment.

Another problem experienced was that the holders of these basic accounts are also liable to be those on low incomes, with low (if any) savings and are more likely to be in arrears paying their household bills than those without them. This vulnerable group are less likely than most to be able to deal with unexpected additional expenditure, such as an unforeseen bill for home repairs, but without recourse to any credit facilities, they may be forced into resorting to high interest loans to cover temporary setbacks.

The NCC found that "people on low incomes who use accounts to manage their money are more likely to be in arrears with household bills. They are also more likely to have outstanding credit commitments, partly because they have wider access to credit", than those without accounts.

The government has set a target of halving the number of households which do not have access to a bank account by 2006. The banks state that they currently face a lack of demand, however more than two million applications, in excess of the government's expected take-up, for the POCAs have been made. The banks are claiming that reaching the targets will be difficult, as they are being impeded by various barriers to opening basic bank accounts, such as the identification requirements in money laundering rules. Some of those on low incomes may not possess either a full driving license or full passport, and so find difficulties setting up new financial accounts. The banking industry has also been widely criticised for failing to actively promote basic bank accounts and, sometimes, for actually discouraging people from opening them.

The NCC proposed that basic bank accounts need to be more flexible. Suggestions to make the bank accounts meet the needs of consumers included offering weekly, rather than monthly, direct debit facilities where payments are only triggered if the money is available in the account, occasional payment holidays, and small free 'buffer zone' overdrafts.

Whether the lack of interest is due to the banks, the government, or the product itself, something needs to be done if there is to be an increase in the take-up rates. Half of those surveyed by the NCC felt they do not really need an account. An even more damning indictment of the current basic bank accounts was that a similar proportion of account holders preferred to withdraw all their income, rather than leave it in the account, and then manage it as cash. An inclusion policy may be a laudable idea, but it is no use if people do not want to be included, and it should not disadvantage those it is meant to help.

Improving Your Financial Position

2008-06-30T00:28:00.007-07:00

If you want money you need to learn how to control it. You need to improve your financial education and build your discipline. I am going to reveal to you how you can do both. Let me ask you a very simple question. Do you want money? Of course you do!

Everybody wants money. You might think my next questions are even sillier, but I'll ask them anyway. Would you like to have money all the time? Do you really want money?

You see what I am asking you, by adding the word "really," is do you actually want the money itself or do you want the freedom it can buy you? Ahh. Now you see what I am getting at. What you really want is the freedom that the money represents. What you really want is freedom.

Access to money allows lots of freedom.

What would be the point of being a millionaire or even a billionaire if you were serving a prison sentence for the rest of your life? Your loss of freedom would render your prime use for that money next to useless.

So, how do we get money? There are many ways. We can work for it, receive commissions, receive royalties and we can accrue it from things like interest and investments. We can even steal it, much as I dislike even mentioning such an option.

In reality there are only two basic ways of accumulating money:

1 - we can work for it ourselves by exchanging time and effort,

2 - our existing money can be put to work to replicate itself.

For most people, it is not how much they earn, it is how much they are able to keep. That is the single most important difference between becoming wealthy and staying poor. Spending more than we earn is the recipe to certain financial disaster. Yet most people do just that.

The answer to becoming wealthy is financial education and discipline.

There are many ways to educate yourself better in the ways of handling money. However, by far, the easiest is to gather the knowledge through the wisdom contained in appropriate books. In my opinion, there is no better general resource than George Classon's timeless classic, "The Richest Man in Babylon". I highly recommend it.

I know from experience that those who desperately need the knowledge this excellent book contains will never read it - even if it were placed in front of them every day for a month. That is why they are poor. They think poor and do nothing to change it. What is in their wallet or purse is a direct result of what is in their head, or, more correctly, what is not in their head.

The poorest people are the people who spend the greatest amount of money on trash. They would never think to buy knowledge or invest in their greatest asset - their brain!

There is another very powerful thing that you can do to prepare yourself to handle money wisely. If you want to have money, I suggest a good place to start is with your own discipline. This is another area where poor people fall well short.

If you want to elevate your self esteem and improve your discipline both at the same time, try the following. It will ensure that you have money all the time:

Go to your bank. Withdraw the biggest single denominational note you can (say $100). Put the note in your wallet or purse then, and here comes the most important part, DO NOT SPEND IT!

Nothing will give you greater self esteem and nothing will build financial discipline stronger than doing this.

I have been walking around with three $100 notes in my wallet now for over a month. I refuse to spend them. I go into shops, I look at things I want, I think, "Gee, I'd really like that!" then I turn around and walk out. How much money do you think I have saved by not giving in to impulse buying?

My $300 gives me a great lift. It gives me tremendous self esteem to know that I can afford to buy lots of things if I want. I am in control of that money. It is not controlling me. I am exercising my discipline not to spend it.

I have other money in my wallet. It's just that the $300 is what I call my "quarantine money." The other money is my budget money.

If you want money you need to learn how to control it. You need to improve your financial education and build your discipline. I have just revealed to you how you can do both. Now that you know, will you do anything about it? Hmm.

[If you like this article and would like to use it on your own website or ezine you may do so ONLY if the article is not changed in any way and the final paragraph: "About the author", with all links intact, is included.]

Financing Collectibles for Fun and Profit

2008-06-30T00:28:00.005-07:00

With the advent of the internet and especially auction services like those provided by Yahoo and E-bay, serious collectors have much larger arenas in which to buy and sell their wares. This provides the opportunity for quick discovery of hard-to-find items that previously might have taken years to find.

Depending upon the rarity of the collectible and the owner's awareness of its value, prices may range up to thousands of dollars for something of true quality in above average condition. However, there are still bargains being found everyday. A lot of things are being sold for a fraction of their true values simply because the owner wants to free up some space or rid themselves of what they perceive to be unnecessary clutter.

Savvy collectors know, not only the true values of the items that they collect, but also where and how to sell them for a profit. Unfortunately, if the item available costs more than available cash, the opportunity of a lifetime can remain unrealized. The question is: how to prevent this opportunity from being lost forever.

The answer is financing.

To finance something is to make up the difference between cash on hand and the purchase price. Depending upon the price of the item and the time it can take to liquidate it, you may have some options. If you only need a few dollars until pay day, you may be able to borrow short-term money from a relative or friend. If you need a few hundred, you might consider a cash advance on a credit card; especially if the item can be sold before the bill comes due. If you need a few thousand, neither your friends nor your credit card may be willing to accommodate you. You may want to consider a HELOC.

HELOC stands for Home Equity Line of Credit. It is an inexpensive means of borrowing money by accessing equity that you may have in your home. When you have a HELOC you can get money immediately. Interest is reasonable because it is tied to the Prime rate. Payments are low because they are interest only.

Many homeowners find that HELOC rates are considerably lower than the rates of the credit cards, personal loans and second mortgages. However, unlike credit cards and personal loans, the interest paid on a HELOC is often tax deductible (consult your tax advisor).

Given the previously described scenario, having a HELOC would allow you to write a check for items that may cost thousands of dollars. Conceivably, you could turn around and sell them, pay-off the HELOC and make a profit before your first payment becomes due.

If you would like to turn your hobby into something more serious and graduate from seller to "Power Seller" or from hobbiest to entrepreneur, a lack of cash may not be an obstacle. A HELOC could be the key to your success.

By Robert E. Jones, Jr.

Students Investing in Their Future Need to Manage Their Finances Today

2008-06-30T00:28:00.003-07:00

With the A-level results coming out, the long wait for UK school leavers hoping to go to university will soon be over. All the hard work that has been put into achieving the grades required will now pay off and the fun and freedom that is student life can begin. This may have been the case in the past, but the notion that university life is socially and financially responsibility free is now lamentably outdated. These days, if you want to study beyond the age of 18, learning becomes very expensive.

According to the National Union of Students (NUS) the typical cost of living expenses at a university outside London are around £8,600 a year for the essentials of food, rent, fuel, books and tuition. For students' studying in London they can expect to pay over £10,000 a year.

Barclays bank has calculated that currently the average graduate leaves university owing £13,501. Jeremy Law, the head of student and graduate banking at Barclays said, "students starting a three-year course this September could be graduating with debts of almost £20,000?graduates will find themselves with debts for years to come which may affect their ability to buy homes and invest in pensions?prince or pauper, these levels of debt may act as a deterrent to some people considering going to university."

With student debt growing every year - financial comparison sites like Moneynet are seeing an increased need for students to take control early and carefully plan for their future. Richard Brown, Chief Executive of Moneynet said "We all understand the importance of budgeting, but for students this can be especially difficult."

HSBC has estimated that there will be a difference of around £6,400 between the average student's income through loans and their total expenditure this year, making the skill of how to budget effectively a vitally important one to develop early on in a student's life.

A spokesperson for the NUS said, "When you get your student loan it can seem like a lot of money. And for those who have never had to juggle lots of money before it can be difficult not to go out and blow it."

There is help available from the NUS and other sources to students who get into financial difficulty. The NUS has set up advice centres which can provide support on money management as well as advice on how to access any other funds such as Higher Education Grants, Childcare Grants, Disabled Students' Allowance, Parents' Learning Allowance, as well as possible reduced rate loans, which may be available dependent on course subjects and individual circumstances.

An important issue for freshers to learn is that making careful financial choices early on, such as the right bank account, can help keep graduation debt to a minimum. By focusing on the interest rates, authorised and unauthorised overdraft borrowing rates, bank charges and ease of access to the money in their account, rather than the host of freebie sign-up gimmicks can make all the difference.

The NUS advises, "Students not to get a credit card as you will pay exactly the same high interest rates as everyone else". In general, credit cards rarely carry genuinely privileged terms solely for students, however students can still utilise cheap forms of credit specifically devised for their circumstances, such as graduated interest-free overdrafts and low interest student loans, before resorting to a credit card if necessary.

Living at home will help to keep costs down, but for most students, this is frequently either not possible, or not desirable. The best way to make finances go further whilst at college is obviously to get some form of job that will fit in around studying. Although many employers do not like employees having irregular working hours due to external commitments, there are some employers who will veritably embrace students as they can fill in on a part-time basis to cover unsociable hours and holiday periods. Supermarkets, restaurants and bars are ideal for student work, as is working late shifts in large financial firms, or being a mystery shopper for research companies, or even becoming a film extra for £50 to £200 a day.

The real problem that needs to be in the minds of all students though is that any money that they borrow, whether it is through a loan or a credit card, must still be paid back at some point, even if that time may seem a long way off, and they expect to be earning a high salary. The truth is that there are more graduates leaving university every year, and there is increasing competition for what seems to be a dwindling graduate job market with diminishing pay rates. Students need to take control of their finances as early as possible in order to stop their finances taking control of them for a long time to come.

Is There A Retirement Crisis?

2008-06-30T00:28:00.001-07:00

When people speak about the increasing age expectancies, they generally do so with positive connotation. This author agrees-there's nothing wrong with living longer, especially if we can sustain our quality of life at each period throughout our lifespan. The problem, then, is not that we are living longer-it's that we are not planning for it.

When our social security system first began making payments in 1940, the average length of collection was 8 years. The present average collection period is 18 years. Furthermore, in the 1950s, there were more than 10 workers for each retiree. Within the next decade, that ratio will drop to 2:1, which will be mathematically unsustainable under our current system. Social security was never designed to be a pension. Its intention was to provide insurance against poverty for the elderly. And yet, the current average retirement age is 'coincidentally' the same age that we may first begin receiving social security-age 62. Seems like we're using it the wrong way!

A Scenario: Healthy male, age 50, loves his job and wants to work until 75. He confidently feels he will live to 100, and he may! What does he need to do to maintain his current lifestyle throughout his 25 years of retirement?

Well, if he presently spends $40,000/year, at 3% inflation he'll need $83,000/year at age 75 and $175,000/year by the time he reaches age 100. In total, he'll spend about $3 million during the course of his 25 year retirement.

To accomplish this without risk to principal, he'll need about $1.8 million by the time he reaches retirement, and to do that, assuming he has yet to start saving, he would need to invest, at 9% net interest, $21,250 per year for the next 25 years.

Had he started saving when he was 30, his annual required savings would have been $3,422, a difference of over 600%. So the question is, have you started saving?

By Matthew S. Clement

Vesting and Your 401(k)

2008-06-30T00:27:00.023-07:00

Do you have a 401(k) retirement account? Are you vested yet? Before you move on to your next job, it is critical for you to find out if you are fully vested in your retirement account before you make the move. If you are not, you could lose hundreds if not thousands of dollars in employer contributions.

Vesting refers simply to the non-forfeitable percentage of your account's assets. In other words, whatever you contribute to your 401(k) plan is always yours to keep including any rollover money.

If your employer contributes to your plan, a vesting schedule for the employer's contribution is part of the plan. This schedule ties in a non-forfeitable percentage to the employer's contribution for each year of service until you are fully vested - 100% - in the employer contribution.

Vesting schedules vary with the employer. A sample schedule could include you being fully vested after three years of service. After year one the schedule may have you one third vested; after year two you could be two thirds invested; finally upon your third anniversary you would have full entitlement to your employer's contributions, thus you would be 100% vested.

In all cases, upon leaving a company your contribution and any rollover funds are yours to keep. However, depending on your employer's vesting schedule only a percentage of the funds contributed by your employer may actually be yours to keep. If you leave before you are fully vested, you stand to lose a significant amount of money. Thus, it behooves you to calculate whether the financial benefits of the new job outweigh any potential loss of employer contributions to your 401(k) account.

By Matthew Keegan

Do You Know What Tomorrow Will Bring?

2008-06-30T00:27:00.021-07:00

I've been sharing the following idea with people for a few years now, and realized recently that I had never written specifically about it. So here it is:

"I cannot predict the future."

That may seem simple enough, and it's certainly accurate, yet for many advisors, this edict is completely disregarded. How many times have you heard someone say, "I know," when what they really meant was, "I guess?" In stating that I cannot predict the future, my intention is not to appear pessimistic. On the contrary, I agree with what Roosevelt had to say about the issue; "The only limit to our realization of tomorrow will be our doubts of today." I therefore believe that we can accomplish just about anything. Nevertheless, believing anything is possible is far more grounded in reality than believing that I could know, with any precision, how everything will ultimately unfold. And so with that much clear, I would like to share what I do not know about our collective financial futures.

I do not know which segment of the market will outperform all others during this year, or any year.

I do not know if this year's equity market will be up, down, volatile, or stagnant.

I do not know what our tax system will look like in ten, twenty, or thirty years.

I do not know what the rate of inflation will be, or what the rise in housing will be, or college tuition, or gas, or bottled water.

I do not know if age expectancies will continue to increase or begin to decrease.

I do not know how the United States will fare in competition with the rapidly developing markets of other nations.

While it may appear that I don't know much, here's what I do know:

I can presume, in a careful manner, certain long-term expectations. And if I am successful in helping my clients understand and appreciate those expectations, I would hope to maximize their full financial potential.

I am able (and willing) to respond to change. Ask any advisor who's been doing it for fifty years what he thinks about change, and he's likely to tell you his way is the best way, always was, and always will be.

I believe there is a close-to-perfect approach to meeting the goals of each client, and I spend great effort, in every instance, to find out what that is. Each individual, each family, each small business owner has their own attributes, and I am ever-present to the notion of finding a common ground. I always attempt to write about topics that transcend finance. Money is allegorical-how you save and spend both your time and your energy will often correlate with how you manage your finances. What I do not know about the future therefore also transcends economics, and so I approach everything with an open mind. Do you?

By Matthew S. Clement

Live Green; Save Green!

2008-06-30T00:27:00.019-07:00

Have you seen the recent article on a new "green" residential high rise in Battery Park? It's called The Solaire. For a look at the hopeful future of architectural efficiency, check out the myriad of cost saving and environmentally-friendly features of the building:

http://www.batteryparkcity.org/concept/green

The article got me thinking of ways to help you personally benefit from being environmentally-friendly, without having to re-locate! I've come up with two areas worth consideration.

(1) Tax Credit for the Purchase of a Hybrid Vehicle

New owners may write off $2,000 of the purchase price of the following models:

Ford Escape Hybrid ('05)
Honda Accord Hybrid ('05)
Honda Insight ('00 to '05)
Honda Civic Hybrid ('03 to '05)
Toyota Prius ('01 to '05)

Initially, the amount was scheduled to be reduced in 2004, but new tax law allows the full $2K deduction until the end of 2005, at which point it drops to just $500. That gives you about four months to take action, but only if you're in the market for a car.

One further benefit is that the deduction may be claimed directly on Form 1040 long-form, line 35 (it does not require Schedule A). Additionally, there are no income thresholds. There are, however, a few limitations. (a) It's a one-time deduction. (b) Only the original owner can claim the tax break. (c) You must take the deduction in the year you put it on the road, or file an amended tax return within three years of original intended filing date.

(2) Conserve Your Gasoline!

At nearly $3/gallon, filling up 20% less often could save the average commuter $400/year:

(a) Use a sunshade. A cooler car requires less air conditioning.

(b) Don't top off your tank-The excess is lost as fumes, and make sure your gas cap is tight.

(c) Combine trips-Cold engines use more gas than warm ones.

(d) Avoid peak traffic times-Idling uses unneeded fuel, and unnecessary time.

(e) Optimal efficiency for most cars is 55-60mph. Speeding may cost you more than a ticket!

(f) Clear your car of junk. Extra weight uses up gas.

(g) Keep your tires properly inflated and rotated. Check them every 2 weeks.

(h) Get regular oil changes, and check your air and fuel filters while you're there.

(i) Finally, in your home, a programmable thermostat can save you an additional $150/year.

By Matthew S. Clement

What Happens if You Die Without Making a Will

2008-06-30T00:27:00.017-07:00

If you die without making a Will in the UK, the state will decide who gets what and how much, so those who you would want to benefit may get far less than you hoped.

Your estate (your property and all belongings) are frozen and become subject to the law of intestacy. You are said to have died 'intestate', meaning everything you own will be valued, tax paid at 40% if worth more than £275,000 (as at August 2005) and then shared out to your surviving spouse or relatives or given to the state if you don't have any.

The problem with this is that neither you or your family will have any say in the matter if you didn't make a Will. The beneficiaries and the share they receive will be decided by the state and the whole process can takes months or even years because you didn't take the time to make a Will.

Whilst the law and complete strangers decide how your belongings are shared, your surviving spouse or partner has all the usual household and living expenses to pay. If you are the main breadwinner they will probably be on a reduced income. Your surviving spouse or partner may not have access to money, she or he would normally have a right to if you had made a Will, because the assets could be frozen until all the formalities have been sorted out. If you have got a valid Last Will and testament it should take no longer than three months to complete the legal process and release your assets to the people who you chose.

So Who Gets What if You Die Without Making a Will?

When someone dies without making a Will or Last Will and Testament, their estate (all their property and belongings) are distributed according to the law of intestacy. This is where, in effect, the state writes your Will for you and is most likely not to meet your wishes. The following outlines the basic rules that decides who gets what:

If you are married at the time of your death
Your spouse will get everything if you left less than £125,000. If more than £125,000 is left but you leave no children, parents or siblings, then your spouse will still get everything.

If you are married with children at the time of your death
If you die leaving a spouse and children, then your spouse will get the first £125,000 and your personal effects. The remainder is divided as follows: your spouse gets a life interest in half and the other half is divided between your children. A life interest means that your spouse is entitled to the income on that half for their lifetime and on their death it will automatically pass to your children.

If you are married without children but have parents or siblings
If you die with no children, but have surviving parents or siblings, then your spouse gets the first £200,000 plus personal effects and the remainder is divided two ways. Your spouse will get half and the other half goes to your parents. If your parents have pre-deceased you, this share is divided between your siblings.

If you are not married at the time of you death

If you leave children then it will be divided equally between them.

If there are no children but your parents survive you, then everything will go to your parents.

If there are no children or parents, then your siblings will receive everything.

If you leave no children, parents or siblings, then your grandparents will get everything.

If none of these people are still alive, then it will be divided among your uncles and aunts.

If there are none of the above then your estate will pass to the Crown.

Notes:
When using the term 'children' this includes illegitimate and adopted children but not step-children (unless legally adopted). Joint property generally passes to the surviving joint owner.

Should You Borrow From Your 401(k) Account?

2008-06-30T00:27:00.015-07:00

If you have a 401(k) account, it can be very tempting to borrow from your account especially when your balance is very high and a loan could easily pay off existing debt, fund a home purchase, or pay for college tuition. Before you make the decision to borrow money, there are several things you must keep in mind to avoid risking your funds.

Borrowing from a 401(k) can seem like a risk free loan, especially since you repay yourself with interest. However, there are costs involved that are not readily apparent to the borrower who elects to take out a loan:

1. On the borrowed funds, you lose all tax-favored investment returns. In other words, you are effectively charged extra interest for the loaned funds.

2. Any interest you pay, even though you are paying yourself, is not deductible, but will be taxable to you when the plan pays you back via future distributions.

3. You may have to pay a fee to take out the loan. Add this expense to the loan costs to see if a loan is still cost effective.

4. If you leave your place of employment before paying off your loan, you will be required to pay the loan back in its entirety immediately. If you do not have the funds available to pay back the loan right away, you will then be subject to IRS taxes and penalties which can eat up as much as 30% or more of your borrowed funds depending on your tax bracket. The IRS treats all loans that are not paid back as disbursements.

Yes, a 401(k) loan can help fund life's emergencies, but the hidden costs and fees involved as well as potential taxes and penalties can quickly turn a good thing into a bad move.

By Matthew Keegan

Why We Are Never Satisfied with What We Have

2008-06-30T00:27:00.013-07:00

I have to admit, I do it too. I complain. Seek better. Complain again. Ridiculous cycle. It's more of a condition really. A humanity disease, I think we are born with it. It is almost as physical and useful as a regular appendage. Don't get me wrong, being dissatisfied with here, has got us all to a lot of great theres. Otherwise America would still be in dreary old England and we wouldn't have the 4th of July.

Most progress has something to do with wanting more, better, different. But it isn't always good. People jump from relationship to relationship, place to place seeking what they didn't find in the previous opportunity. It's worth considering, for a moment, that maybe we don't take full advantage of the opportunities that exist, right where we are.

Financially, we are always striving for more. No matter how big the raise, somehow we are still always just scraping by. A very particular group of dissatisfied individuals resides in the settlement recipient community. Those are the people who are receiving payments spread out over time. Impatient for the money, sometimes justifiably so, they cash in their future payments to get their money sooner. So instead of receiving the regular payments spread out over time, they choose to accelerate their payout. Of course, the reason is they think it would be better that way.

It isn't always better to unstructure your payments. Just like it's not always better to get a new car, move to a new place, and get a new love interest. There is a healthy time, motivation, and method for improving your situation, be it financial or otherwise. Consider carefully, take a moment and consider, if the way the things are, might not be good enough.

By Jason Rigler

Save Your Money, Dont Give to Charity Scammers

2008-06-30T00:27:00.011-07:00

**If it's Spam, it's a Scam!- If it sounds too good, if it shows up in your bulk folder or your spam folder - don't touch it, just delete it

**Check out the charity- You can find some charity info at the BBB site www.give.org

** There is no deadline to give- Take you time. Charities don't have deadlines, but scammers do to stay under the radar. Tell them you will think about it. If they use high pressure tactics, they aren't worth it and more than likely aren't legit.

**Ask Questions- Found out the location of the charity, how much of the money is for Administration use and how will the money be used for the needs. If 50% or more of your donation goes to executives' salaries, administrative cost and fundraising, skip them.

**Get information in Writing- Have them send you a brochure, a graph of their previous divisions of money, and their 990 tax form information that they file with the government.

Charities are required to provide Form 990 information on request (This excludes churches, synagogues and other places of worship. Don't be fooled by their 'tax-ID number' these are only needed to for employer verification.

**Check out all charities for Police and Fire Departments- Check them out first, get the name, address and phone number to contact them back and do follow up.

**Get a Receipt- Preferably one with the charity name on it. A paper trail is always a good thing.

** Don't donate with cash- Again the paper trail idea, check or credit card is best.

**Be protective with information- Don't give information out over the phone like credit cards or personal information, unless you have checked them out or dealt with them before.

**Get the exact name of the organization- Many have names similar to legit organizations. They may change the wording slightly to throw you off.

**Contact the authorities- Police and or FBI can be contacted, have as much information as you can with you to give them. Even recording a call can be helpful if you get regular calls, make sure it is allowed in your state or if you have to let them know you are recording them.

The BEST way to give to charities is to contact them after you have done your own research. Don't let the scammers scare you off, Please do give of yourself, time or money. Print out or email these tips to others who may not be aware.

By Dawn

Ways to Save Energy and Slash Electricity Bills

2008-06-30T00:27:00.009-07:00

1. Lighting & Light Bulbs
Install low energy light bulbs in rooms you use regularly - they last up to 15 times longer than a normal light bulb and provide the same lighting for a quarter of the running cost. Turn off the lights when you leave a room for a long period and don't use several light bulbs where one will do the job. Teach all family members to turn off lights when leaving a room.

2. TV, Hi-Fi & Radio
Turn off the TV or video and hi-fi rather than leaving it on standby. Always use the television's on/off switch. Leaving the television on standby wastes energy.

3. Cooking
Microwave ovens reduce cooking time by 15% to 20% and save energy. When boiling vegetables, use just enough water to keep them covered. Use a jug kettle that has a water level gauge to ensure you only heat the amount of water you need. Cover saucepans with lids whenever possible to reduce the cooking time.

4. Home Laundry & Dishwashers
Save electricity by using old-fashioned clothesline for clothes drying. Avoid drying clothes on radiators as it lowers the room temperature, making your boiler work harder. Shut off dishwasher for dry cycle. Let your dishes "air dry". Don't use dishwasher or laundry equipment until you have a full load.

5. Fridges & Fridge Freezers
Make sure your refrigerator and freezer door seals are airtight. Let hot foods cool before placing them in the refrigerator. Defrost refrigerator regularly - when about 1/4 inch of ice has formed. Place your refrigerator in the coolest part of the kitchen - away from cookers, heaters and out of direct sunlight.

6. Heating
Turn off electric water heater when going away for vacations or weekends. Turn your heating down rather than opening a window to reduce the room temperature. Never cover radiators with curtains or furniture as this reduces their efficiency and wastes valuable heat. When going on long holidays, remember to switch your water heating off.

7. Work Tools
Use hand tools in your workshop instead of power tools.

8. Appliances
When shopping for new appliances, ask about energy-efficient models. Buy appliances on the basis of cost plus operating costs, not price alone. Limit the use of appliances that use over 1,000 watts. Keep appliances clean and in good working order. They'll use less energy.

9. Bills
Check all energy bills closely. Errors can be costly.

10. Insulation & Air conditioning
Insulating your attic will save on operating air conditioning (also heating). If your walls are suitable, cavity wall insulation will substantially reduce heat loss. Keep air conditioning condenser shaded from sun or on north side of house. Turn off air conditioning when no one is home.

By Chileshe Mwape

Help With My Annuity

2008-06-30T00:27:00.007-07:00

The cries are heard from the distance, "I need help with my annuities." Nothing has changed...just a lonely senior who can't trust anybody with her annuity because every time she asks for advice, someone tries to make her invest in a different annuity...Sound familiar? Well you are not alone.

Often times when speaking to a senior about their annuities, I ask them their biggest complaint. Time and time again they say that it is hard to find someone who can help them with their annuity without trying to sell them another one. It is not uncommon. The truth of the matter is, many annuity agents are not out to help the client, but to help themselves (I am sure you are not surprised). They want to make the "fast buck" without regards for the client's needs or investment objectives. The unfortunate part is that, this isn't going to change.

Honest help with an annuity is hard to find. Insurance agents don't get paid for their time, they usually only get paid for making a sale. So it's no wonder why they always recommend another annuity. I once visited someone who needed help with an annuity that an agent "talked him into." The problem was, in order to get into this annuity, the agent talked him into surrendering his old annuity and paying a $13,000 surrender charge to do so-AND THE ANNUITY HE PUT HIM INTO WAS WORSE THAN THE ANNUITY HE GOT HIM OUT OF...When I asked him why he called the other salesperson in the first place, he told me he just needed to make a small withdrawal from his annuity and didn't know how...And the agent tricked him into switching it into another annuity and paying a huge surrender charge which he could never recover due to his age...Fortunately it wasn't too late and we were able to reverse his transaction.

However, good help is hard to find. There is no doubt. This may come as no surprise but my recommendation to anyone who needs help is to first purchase the book "Annuities: The Shocking Truths Revealed." Sure, I wrote it and sure I have a vested interest in saying that, but at least it talks about annuities in a way that anyone can understand them. And at least it points out all the things people who own annuities or are looking for annuities need to be careful of. Most importantly, it points out the dirty little secrets that agents never tell you about annuities.

The bottom line is this. If you need help with your annuity, you need to be vigilant. Many agents are out there for their own good and you must be aware of this. Utilize your resources and learn the right questions to ask your agent before making a decision (Also found in the book). Sure, you may just give up and never get help but the worst decision is no decision. Help with your annuity is hard to find, but not impossible...that's why I wrote the book!!! Good luck and remember...

Ignorance is not bliss...

By Tony Bahu

Personal Finance - Have Consumers Had a Belly Full of Personal Debt?

2008-06-30T00:27:00.005-07:00

For months, we were trigger-swipe happy, putting our groceries, clothes, holidays and service charges on our credit cards. We wanted mortgages, we took out loans, we watched Property Ladder and What Not To Wear. Whether you were born middle class, had middle class aspirations, you became middle class through your spending. Debt united people around the UK, we sympathised with each other on what we couldn't afford - but it didn't matter, we still bought it. Soon everybody had a bottle of Jacob's Creek in their kitchen and olives and humous in the fridge.

Yet, it would seem as if a debt conscience is setting in. This morning, The Guardian printed a story based on the fact that Nationwide had reported a 0.2% decrease in the average house price, whilst the Times reported on a statement from the Bank of England, showing that credit-card borrowing was at its slowest rate for more than four years, with mortgage lending also very static.

According to the latest Department of Trade and Industry Survey, 5% of individuals reported finding their household's debt repayments a "heavy burden" and 4% of individuals are currently behind in payments for at least one credit commitment or domestic bill over the past three months.

According to Credit Action, in December 2004, 1.2 million electricity and 1 million gas domestic customers were behind in repaying their debts to their supplier. Additionally 20% of people say that they often neglect checking their bank balance because "they are too scared to find out how much money they have", according to Lloyds TSB.

Credit Action also reported that the number of people searching for help to manage their debts had almost doubled in May in 2005, compared to figures in May 2004 and a survey from Relate revealed that 44% of couples find money to be a contentious issue in their relationship and a quarter of people in debt are receiving treatment for stress, depression and anxiety from their GP.

It doesn't have to be all doom and gloom however. If you're lucky enough to have no outstanding debt, you can keep you finances in shape by exploiting the services of sites such as moneynet, which provide financial product price comparison information and extensive consumer information guides. If you have any outstanding debts, you can seek advice from the Consumer Credit Counselling Service (CCCS) or Citizens' Advice and financial comparison sites like lowermybills and moneynet also provide detailed research on debt consolidation loans and debt management.

By Rachel

If All Things Are Possible, Why Cant I Balance My Checkbook?

2008-06-30T00:27:00.003-07:00

For me, the most terrible time of each month is the day our bank statement comes. We commonly call it BSS (Bank Statement Syndrome). I don't know why it is, but I have trouble getting the parsonage checkbook to balance with the monthly bank statement.

That ominous document intimidates me every time it arrives. After all, the bank's business is keeping track of accounts. They have hundreds, maybe thousands of accounts and I have just one. On the surface, it seems a rather simple thing for me to keep our checking account up to date, but I assure you, it is not. Every time I try, I lose interest.

Keeping our checkbook accurately balanced is almost like a circus balancing act; everything is up in the air. No matter how often I add those figures, I never get the same result twice. I have resorted to adding up the figures at least three times and then take the average. So far, I've been batting a .195 and have been dropped by the major league, which has lost interest in my career. This may satisfy my conscience but it does little to appease the accounting department of my friendly banking institution.

The thing flustering me more than anything else are those fees. The average bank has more fees than a West Virginia hound dog has fleas. Everything I turn around there is another fee. (I need to stop turning around.) Somebody needs to invent a fee powder.

Each bank must employ a stable of employees whose only job is to dream up these fees. How else can you explain it? These fees are creative enough to cover every aspect of a person's wallet, retroactive three generations back.

To open an account there is a fee. Each account carries a monthly maintenance fee. I have been paying this monthly maintenance fee for several years and I have yet to see someone from the bank come out and mow my lawn. What is this maintenance fee? What are they maintaining? They certainly are not maintaining my checkbook. With all the fees I am paying, I would expect someone from the bank come to my house, sit around my table, and help me balance my checkbook. I would supply the coffee and donuts -for a small fee of course.

Another thing I do not understand is the ATM fee. Why do I have to pay money to the bank to get my money out of the bank? Whose money is it anyway?

I think banks offer monthly bonuses to the employee who comes up with the most creative fee for that month to impose on its customers. Fe?Fi?Fo?Fum all those bank fees are dumb.

Once upon a time and far far away, banks would bribe customers with toasters or umbrellas to open accounts with them. Those very days are over, you can be sure. Now, I'm the one bribing the bank to keep my account with them.

Last week I slipped the cashier the usual quarter and asked her to make sure my deposit got in my account, please. I do not know whether it is bribery or just a gamble and probably would do better with the Florida lottery.

I would not mind it so much if only my checkbook would occasionally agree with the bank statement. It takes a lot of effort on my part to keep some semblance of order in my checkbook. I am not always as successful as I would like. I make mistakes and sometimes they cost me. At my bank when I bounce a $3.75 check, I have to take a second mortgage out on my house to pay the fee.

I would close my account and transferred to another bank that there is a closing fee, a transfer fee and a fee that has no explanation whatsoever. Just a goodbye jester from my bank, one last chance for them to screw up my checking book.

Some people think God should do everything for them. All they have to do is sit back and enjoy themselves and God will do everything for them. A prevalent attitude about faith supports this erroneous notion. Someone once compared this idea of faith as putting a "nickel in the slot and pull the lever" and you get what you want.

Some things in my life only God can do and I need to understand what they are and allow Him to do them. However, some things in my life God expects me to do. God will never do these things for me. I must come to grips with this distinction. If I don't, my life will be miserable.

Some people are sitting around waiting for God to do something He is expecting them to do. As they wait, they become frustrated and start accusing God of all sorts of sinister things.

Part of getting to know God is understanding this. What is my responsibility as a Christian? What does God expect from me?

An Old Testament verse puts much of this into perspective. After Solomon dedicated the Temple God responded by saying, "If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land" (2 Chronicles 7:14 KJV).

For the most part, many people are sitting around waiting for God to balance their checkbook when He has put the pencil in our hands.

By Reverend Snyder

Simple Ways to Save Money

2008-06-30T00:27:00.001-07:00

Things are so expensive these days. We seem to be hearing, and saying, that a lot lately at the gas pump, in the grocery store and especially when paying bills. But there are simple ways to help save money without making sacrifices in your lifestyle. Small savings can turn into large rewards for little effort.

Start with the small things. Eat out less, stay home more often. Invite your friends over for a potluck supper and rent a movie. You are still able to enjoy entertainment at half the cost of going out to eat and then to the movie theatre. My friends and I rotate whose house we will go to every weekend. Giving the house a thorough company-coming-over cleaning is then limited to once a month.

There are many, many ways to save money when shopping for your children. Their clothing can be purchased at a consignment or thrift store for half of the original cost. Many clothing items may even still have their tags, especially baby clothes. Set up a clothing swap with your friends who also have children. You may find that they can hand down clothes to your child that will be eventually handed down to their even younger child.

All children like to draw; the evidence is displayed on refrigerators across the land. Have you noticed that your office paper has been quickly disappearing? This phenomenon of missing printer paper can become expensive. Recycle your office paper for artwork. Or even re-use the paper grocery bags, they're free!

Babysitting costs can add up. But you have to get away every once in a while. Try rotating sitting with your friends. We keep the kids on Friday night while our friends go out. They keep our kids on Saturday night while we go out. It reduces the cost of our night out on the town.

Speaking of those weekend trips out, don't go crazy! It can be so very easy to spend a lot of money on the weekends. You've worked hard all week, and now you deserve to have fun. While that may be all so true, you might not be thinking about your overall budget. Plan activities that don't cost anything. For example, instead of spending the weekend at the local amusement park, go to a new park and ride bikes through the trails. Picnics, hikes and scavenger hunts cost very little, while they create wonderful memories for your family.

When it comes time to purchase new appliances, look for the energy saving appliances. When you have to run several loads of laundry a week, you want to use as little electricity as possible. On nice days, hang your wash outside instead of using the dryer. Not only will you save money, but it can be a nice escape from your daily routine. Look at all of your appliances, and see how you can save money by using them smartly. You can turn your refrigerator down in the cooler months. Insist that no one is to stand in front of the fridge with the door open for more than fifteen seconds. Electric bills can add up quickly, so eliminate the waste of electricity by turning off lights when you leave the room.

One of the biggest ways that money is lost is through mismanagement. Credit cards may help you make ends meet, but if you can't pay the entire balance at the end of the month they will cost you money. Interest charges and minimum payments can stretch out a small amount of money into a long payment period. Every month, you are losing money to interest. Overdrafting your bank account is another example of lost money. Even though you have overdraft protection, it will cost you in the long run. If you are charged $25 every time you overdraft, and you overdraft four times a month, you have lost $1200 a year to fees. What could have been purchased with that money? What would that money be in twenty years if you had invested it wisely?

There are ways to save money. It may seem as though a little bit here and there isn't worth the effort, but believe me - pennies can turn into mountains.

By Martin Lukac

How to Obtain a Non ChexSystems Bank Account Without Being Scammed

2008-06-30T00:26:00.019-07:00

Predatory lending exists in the mortgage industry. It's typically when a mortgage broker add's on unnecessary fee's to a bad credit application, because he or she knows that the applicant is in a desperate situation.

Predatory banking can also exist for those who have ended up in the ChexSystems.

ChexSystems is a network of financial institutions (mainly banks) that regularly contribute information about account holders that mishandle their checking or savings accounts. Nearly all banks within the US are a part of this consortium.

Bounce a check, and not pay it off in a timely manner, and you could end up in the ChexSystems. Even if you receive a bogus check, and the bank suspects foul play, you could land in the ChexSystems hot seat.

And the sentence for this financial felony isn't light.

If the bank that put you in the ChexSystems refuses to release your name from the ChexSystems database, you'll find it close to impossible to obtain a bank account of any sort for 5 years.

Even if you pay off the offending debt, the bank could still hold you a ChexSystems prisoner. Wicked, but 100% true.

So naturally when you have a situation where people are stuck between a rock and a hard place, the vultures come out to feed. This is what you may encounter if you're looking for a non ChexSystems bank account.

Before you pay money to any service that claims to give you a non ChexSystems bank account be sure it passes the following tests with flying colors.

Make sure the bank is FDIC insured.According to the FDIC web site:

"The FDIC - short for the Federal Deposit Insurance Corporation - is an independent agency of the United States government. The FDIC protects you against the loss of your deposits if an FDIC - insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government."

In a nutshell, if you decide to open a bank account with an institution that isn't FDIC insured, you could basically lose all of your money if that institution goes out of business. So it's extremely important to verify the banks status before you open an account.

You can easily verify that a bank is FDIC insured at the FDIC web site.

If it's a credit union, make sure it's NCUSIF insured.NCUSIF insurance is similar to FDIC insurance, except it's for credit unions.

According to the National Credit Union Association web site:

"The shares in your credit union are insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of NCUA. Established by Congress in 1970 to insure member share accounts at federally insured credit unions, the NCUSIF is managed by NCUA under the direction of the three-person NCUA Board. Your share insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation (FDIC)."

All credit unions that are NCUSIF insured can be found at (http://www.ncua.gov/indexdata.html).

Make sure the institution has a physical branch.This is one of the easiest ways to weed out the bad seeds. Banks with physical branches are always legitimate financial institutions.

Do some background work on the bank.Do a WHOIS search to view the registrant for the banks domain name. If it's a single person, that should raise a red flag. It should always be the banks name or corporate name.

Look on the banks web site. There should be separate telephone and fax numbers, and a legitimate street address - not a PO box.

You can always call 411 to confirm that the telephone number matches the address listed. But also keep in mind that some banks have a central location where they answer general calls.

Make sure the bank DOESN'T require you to use direct deposit in order to open the account.There are some financial services that offer checkless checking accounts. (This isn't a scam as far as I can tell.)

But what if you don't get direct deposit? Or what happens if you switch jobs, and no longer receive your checks through direct deposit? Then you're basically back at square one.

And what if you want to use checks? I mean a checkless checking account kind of defeats the purpose of obtaining a checking account at all.

Make sure the institution doesn't charge you for common items like monthly statements, telephone services, and withdrawls.I recently noticed a financial service charging outrageous fee's for options that are normally provided for free through regular banks and credit unions.

They were charging for everything but the kitchen sink, including: a fee to check your balance at the ATM, a fee to receive a monthly statement, a fee if you wanted to return something you purchased from a retail store, a fee for using their automated telephone service. And that was just the tip of the iceberg!

Even though you're in the ChexSystems doesn't mean you should play victim to financially draining ploys like these. There are always better alternatives waiting in the wings.

By Alexis Dawes

Budgeting Before Buying

2008-06-30T00:26:00.017-07:00

With interest rates being at an all-time low, I can understand the urgency for people wanting to purchase a home. But I caution the first-time home buyer to learn how to budget their money before buying a new home.

I happen to live in a state with one of the highest foreclosure rates in the country. I was so shock to learn that many people loose their homes within the first couple of years. I wondered why so soon. Sure the economy is not the best and people are getting laid-off and having hardships, but some people are simply not prepared for the unforeseen problems and expenses that comes with owning their first home.

When I received a call from a friend telling me about a property less than a mile from my home that was in the process of being foreclosed on, I quickly made arrangements with their agent to view the property. It was a nice single family residence with some minor wear and tear. The family that was loosing the home was a basic middle-class family. I had less than three weeks to close the deal since the home was to be sold on the courthouse steps the following month.

Needless to say I bought the home and had instant equity in the property. Before the closing, I sat down with the previous owners and asked why they were loosing their home. The wife said to me in a matter of fact way, "Well we started falling behind on some bills, and soon things got out of control." I wanted to ask her if she had a budget, did they keep track of their monthly expense but I didn't want to impose on their privacy. However, I explained to her that I was a Financial Coach and worked specifically with people to help them customize a budget. She promised to get in touch with me after the transaction but I never heard from her again. I often wonder if things would've worked out differently seeing as if they had utilized a budget before and after buying their home.

I share with my clients some advice I heard from one of my financial mentors. Before buying a home, put aside the difference of your rent from what will be your mortgage payment, taxes, and insurance for six months. If you can manage without going into the money or finding it to be a hardship on your lifestyle then my advice is too update your budget with the category "repairs". Take 1% of your purchase price, divide that by 12. If you can budget this monthly cost into a separate savings account you are ready to become a first-time homeowner.

[If you're interested in this article and would like to use it on your own website or ezine, you may do so ONLY if the article is not changed in any way and the author information is included.]

By Dina Harbour

Reduce College Debt with Scholarships

2008-06-30T00:26:00.015-07:00

Six Scholarship judges were sitting around an oval table. Forms were piled into 50 boxes. Each one had the name of a state. I looked at the boxes and wondered why some of them were overflowing and others had just a few. This was the first round of judging. By the time the contest was over almost 16,000 applications would be examined. Some of the comments were really critical, "Why did this person bother to send in an application? It's so sloppy." "This person put the wrong address on the envelope, even though the correct one is at the top of the application." One had a cassette tape inside. We played it and it was a country song. The applicant was a good musician.

That was twelve years ago, and many people still do not know or realize that College Scholarship Planning could reduce or totally eliminate college financial debt.

One of the first questions I am always asked is, "When should we start looking?" Then some answer their own question with, "I'll bet we're too late already huh?" The ideal time is to start is the 8th grade to freshman year. Good planning starts early, but scholarships are posted monthly, and if you start planning early, you have a chance to win, big. Many win the very first time. If you are a junior or senior in high school, go for it. But remember, your chances to win increase with every completed application.

You should start College Scholarship Planning even if there is a chance your child may decide not to go to college. But if the decision is yes, you will have everything in place. And the planning experience is more than filling out a few applications.

Another common concern is assuming your family income is too high to win scholarships. Fact: 80% of all scholarships are need based and income related, but 20% are not. This means millions of dollars are still available. It makes good solid financial sense to make an effort to win scholarship money regardless of income.

Always remember: the college scholarship effort is truly a family affair.

By Dale Clifton

If I Had a Structured Settlement, I Would Use It to Pay for Gas

2008-06-30T00:26:00.013-07:00

Has anyone been to the gas pumps lately? Soon $3 a gallon will be the asking price and we'll either have to become cyclists or create some additional income. I plan to do both of course because you can balance thrift and greed pretty well as you ride your bike to work.

I only live a few miles from my place of employment so riding my bike there is no big deal. I've already made a few practice runs, time and safest route. The problem is I live in S. Florida. And you can't stand still and not break into a sweat let alone pedal for 25 minutes.

But I'll find a way. Whatever it takes. As for the additional income side of the equation, I happen to know of a lucrative little program. It's not easy, but if making money was easy plenty of people would be rich. Being a broker for alternative cash flows is a pretty interesting side business. You get to help people, and make money at the same time. I like that.

So alternative cash flows take a number of different forms, from cashing out future settlement, annuity, or lottery payments, to equipment leasing, to business factoring. Two great resources to learn more about these businesses. www.prosperitypartners.com and the American Cashflow Association. Both educate average Joes and corporate executives alike to make money in this secondary finance industry. I personally recommend factoring, and structured settlement cash outs second.

Gas prices are going up, faster than my salary. I need to spend less and make more. If I had a structured settlement, I'd cash it in and use it to cover my gas expenses. Not for work travel, because I'll be riding my bike. But my new alternative cashflow customers might appreciate it if I show up in a car and not sweaty profusely on my bike.

By Jason Rigler

Save On Food - Ten Tips

2008-06-30T00:26:00.011-07:00

To save on food, be an opportunist. Buy what you like, but buy on sale. Do you need oranges every day? Buy them when they're cheap, then buy grapefruit or orange juice when it's on sale. Opportunism is the key to low-cost living in general. You get everything you like, and lots of variety, because everything goes on sale once in a while. Here are ten more ways to get cheap food.

1. Stock up during sales. We recently bought 20 or 30 cans of tomato paste on sale for 10 cents per can. That's cheap food. You can do this with all non-perishables.

2. Try store brands. Some are as good as name brands and some aren't, but all are cheaper. Test them, maybe without telling the kids.

3. Buy fruits and vegetables in season. They are at their highest quality at the point where the price is the lowest.

4. Garden. Gardening can be a great way to stay in shape, and can help you save on food as well.

5. Fruit trees. Even if you don't like to garden, you can have a fruit tree or two that take care of themselves. We love to snack on the grapes and peaches that grow behind the house.

6. Double coupon deals. If a store near you doubles the value of your coupons, buy the smallest size of the coupon item. A doubled 50 cent coupon saves you $1 off a $2 package of toilet paper, but the $1 package is free.

7. Buy by pound or piece. Buy the large pieces of produce when priced by the piece, and you'll get more for the same price. Conversely, buy small pieces when priced by the pound. If you get four bananas for the price of two large ones, you'll still only eat one at a time, right?

8. Plan your shopping. Saving on your grocery bill isn't just about cheap food. It's also about not buying things you don't need on impulse.

9. Use a small cart. If you can't carry too much, you'll buy less.

10. Never shop for food when hungry. Eat a meal first and you'll save on food you don't buy. This simple idea has saved us a lot.

By Steve Gillman

10 Steps to Take if You Are a Victim of Identity Theft

2008-06-30T00:26:00.009-07:00

There have been an estimated 9.9 million victims on America and over 40% of all consumer complaints in the U.S. involve identity theft. About half of the victims do not know how the thief obtained their personal information. The Boston Globe and Newsweek have both covered Identity theft this month telling us how important it is for us to educate ourselves on preventing and protecting ourselves from this type of robbery. Identity theft can happen anytime, anywhere and to anyone, individuals or businesses. Everyone must be educated and aware so it can be avoided. Michael Blanchard, US Postal Inspector says postal money orders and business or certified checks are one way you can be at risk. Most identity theft involves the U.S. Mail which is why the U.S. Postal Inspection Service is a lead agency in investigating Identity Theft. Identity Theft is a criminal offense.

What can I do if I am already a victim of ID theft?

? Contact the fraud departments of the three major credit bureaus, to place a fraud alert on your credit file.

? Close all accounts that have been affected and request copies of fraud-dispute forms and complete and return immediately. Keep copies!

? File a police report in each jurisdiction the theft occurred

? Send copies of the report to your creditors or anyone that requires proof of the crime

? File a complaint with the FTC (800-IDTHEFT or www.consumer.gov/idtheft) and Post Office

? Contact the Identity Theft Resource center at 858-693-7935 or www.idtheftcenter.org

? Request a new driver's license from the state of motor vehicles and have a fraud report attached to your driving record.

By Michelle Dunn

Car Donations and Used Car Donations

2008-06-30T00:26:00.007-07:00

Car donations and used car donations are the way many people choose to recycle their older model cars without having the headache of repairing, advertising, showing, and hopefully then selling them. Being able to get rid of an older car and at the same time gaining the benefits of charitable giving and a tax deduction are all part of the allure of used car donations. Car donations are becoming more and more popular as a means of unloading used cars because of the convenience of the whole process and the ease of transfer.

Many charities enjoy assuming the hassle of used car donations because they find it a very profitable way to finance the work of their particular charitable outreach. By simply accepting car donations and then liquidating those used car donations by selling them at auction, the charity reaps great financial rewards. Most charitable foundations have a set of operation guidelines in place concerning car donations and used car donations that ensures the general public ease of donation by making the process smooth and relatively effortless.

Finding the best charitable foundation for your car donations and used car donations is simply a matter of determining whether you choose to donate to a foundation that liquidates your used car donations for you or donating directly to the charity of your choice. In both instances, your car donations will be sold and proceeds distributed, but the question to consider is how much of the proceeds go directly to the charity and how much are used for administrative purposes. If this is a question that concerns you, you must be willing to invest a little more time in researching the charities that interest you and the ways they handle the proceeds from car donations.

The process of researching charitable foundations and non-profit organizations is becoming easier and easier thanks to the information readily available to you by doing an Internet search. Without leaving your home, you can discover the current and past practices of the charities that most interest you, and you can make an educated decision on where to make your car donations. Used car donations are of great benefit to many charitable groups, and you should find that your gift will be very appreciated, and that every consideration has been given to making the donation process as easy as possible for you, including even picking up the donation from your home.

Personal Finance - Why You Should Compare, not Despair

2008-06-30T00:26:00.005-07:00

Sorting out your personal finances can be a tricky and exasperating time. Whether you are looking to obtain money through a loan, protect your finances with life insurance, medical, travel or car insurance, save some money through an individual savings account (ISA), apply for a credit card or a mortgage, change a telephone or fuel utility supplier, or simply decide what the best current account is for your needs, the choices are seemingly endless as well as being extremely complicated. They can also be potentially serious if you get it wrong. With so many options, and so many companies trying to get you to use their product, it is difficult to know where to turn.

The first method of working out your own finances is to review your needs and compare the products on offer to meet those needs. You could, if desired, visit the banks one by one, burning calories and shoe leather by doing so. Alternatively you may have heard of the World Wide Web, it's like a sort of big and commercial version of Narnia and you don't have to go through your wardrobe to get there. And no freaky men with goats legs ?

? not without a login and password anyway.

So, we present the concept of financial product comparison sites, which have been around in the UK since 1997, when small company called moneynet decided to break up the monopoly in the personal finance market. Over the past eight years, there has been an explosion in the number of UK sites seeking to provide information to enable consumers to make informed decisions on their personal finances. These sites provide free consumer financial product comparison services for credit cards, insurance, investments, savings accounts, mortgages, loans, as well as gas and electricity bill suppliers. Additional consumer information services are also often provided such as financial guides, financial newsletters and personal finance calculators. Moneynet, in particular, has a tool which allows registered users to manage all of their accounts online - securely, including credit cards, savings accounts and current accounts.

You can also obtain financial advice from an independent financial advisor, but this is an expensive way of doing what could be done for free with a little effort. If you do your own homework, then you can use your time with an advisor more effectively by asking informed questions. You'll have a better understanding of what you're being sold if you've done a little bit of homework first.

By Rachel

10 Money-Saving Tips

2008-06-30T00:26:00.003-07:00

1. If you have your haircut every 3 weeks, try going 4 or 5 weeks in between haircuts. If you pay $10 for a haircut, you could save $70 a year by having a cut every 5 weeks instead of 3.

2. Buy only generic basic types of cold cereal, if your family must have it. With fall and cooler weather coming, it's a good idea to introduce hot cereal. It's usually the best buy and by using the microwave oven to prepare, it is almost as quick to fix as cold cereal.

3. If you have a cell phone, don't buy the accessories at the "cell phone store". Check out prices at local discount stores first.

4. Quit smoking. Need we say more?

5. In some states, children's immunizations are offered free at local health clinics. Call the local health department to inquire.

6. Wash, wax and detail your own vehicle instead of paying someone else to do it.

7. Put a little money aside every month in order to pay your car and homeowners insurance annually. Most insurers charge a fee (sometimes hefty!) for paying monthly. You'll also avoid those mid-year increases.

8. When making instant pudding from a box, add an extra cup of milk. The pudding "sets up" the same and tastes the same, but you have one more cup. You might want to experiment with adding a little more. And of course, another money-saver is to use reconstituted dry milk.

9. Meat prices are soaring, so plan to have a meat-less meal at least twice a week. Substitute an egg or pasta dish. Or maybe canned tuna or salmon.

10. If you love magazines, try sharing with a friend. Each of you subscribe to a different magazine, when you're finished reading, swap.

"Beware of little expenses; a small leak will sink a great ship." --Benjamin Franklin

By Cyndi Roberts

Save Money on Groceries: Part I

2008-06-30T00:26:00.001-07:00

One universal of humanity, no matter who you are or where you come from, you have to eat. Unless you grow your own food, you will have to go to the grocery store to get it. That means money. Here are two very simple but highly effective methods for saving money on the food you buy.

Save Money on Groceries: Coupons

While you can find them everywhere, people rarely use coupons. If you are one of those people who does not use coupons, this phrase may change your mind. Free money. That's exactly what coupons are, free money. If someone were to put money in your hand, no matter how small the amount, you wouldn't throw it in the trash. That is exactly what takes place when you throw away coupons for things you buy; you throw away free money that the manufacturer gives you for buying their product. That $0.30 here and $1.00 there starts to add up.

Save Money on Groceries: Plan Your Meals

It sounds like it is unrelated to saving money on groceries but planning you meals for the week goes a long way toward helping you in this area. When you have a specific plan for what will be eaten each day, you can avoid falling into the trap of buying food that no one eats. Planning your meals does not have to be complicated. It can be as simple as saying, "Monday - Chicken and pasta". From there, you know what to buy and are less likely to be tempted to stray from you money saving plan.

By Jon Martin

How to Attain Your Dreams on a Single Income

2008-06-13T22:41:00.001-07:00

If you recently became a single parent and see your dreams being washed away because you feel all alone, you aren't alone. There are single parents that face future endeavors alone like dating again, living on one income, and buying the home they've always imagined. It is possible to do things on your own, be successful, and enjoy every bit of getting to where you want to be in life.

Being a single parent can be an everyday struggle but don't feel you have to give up your goals in life just because you are on your own. At some point in life, people think about moving whether it is into an apartment, condo, or type of house. With raising children you usually need a little more space than living alone so a house is an ideal spot for many families either single parent families or both parent families. Don't feel as a single parent that you wont be able to afford a house on your own. Here are a few guidelines to get you started on fulfilling your dreams.

Mortgage Lenders 3 Preferred Tests to Use to Determine House Budget

First you need to figure out how much money you can spend on a house. Look for prices of houses two and a half times your annual income. Mortgage lenders normally use these three tests so they make a good starting point to follow:

Test 1: The monthly house payment, including property taxes and insurance should not exceed 26 percent of your gross monthly income.

Test 2: All monthly debt payments plus the house payment should be no more than 38 percent of your gross monthly income.

Test 3: As the homebuyer you should have two to three months worth of paychecks in an emergency fund.

Lets look at an example to get a better understanding. Let's assume your annual income is $26,000. This would qualify you for approximately a $60,000 mortgage. The monthly principal and interest payment would add up to about $400 a month; taxes and insurance would then add up to another $100 to $150, depending on the area. Lastly if you put less than 20 percent down, you'll have to pay private mortgage insurance as well, making your total monthly payment come out to be around $575.

Your Cash Flow

Once you figure out how much of a mortgage you can qualify for your next step is to know your own cash flow. It's up to you to make sure you can make the monthly house payment, pay for child care and still look out for your long-term goals such as your retirement fund and your children's education. Be sure to track your spending for several months so you'll know how much you can spend on a house that really fits into your budget.

Houses don't come cheap and you'll have to figure the next expense, which is figuring in your taxes. Houses are often known as great tax breaks because mortgage interest and property taxes are deductible, but that is true only if you itemize.

Save!

Of course you are going to want to make sure to save wisely. Let's assume you find the house of your dreams and it just so happens to be a $64,000 house. You figure that you can put 5 percent down, or $3,200. With closing costs and not washing out your emergency fund, you'll need to save about $5,000. If you invest $100 a month in a conservative no-load mutual fund, you should reach your goal of $5,000 goal in five years.

So if you need to start saving up money to be able to afford a house, with a five-year timeframe, the best place to invest the money is in a mutual fund within a Roth IRA. Usually after five years, first-time homebuyers can pull out all their initial investments plus all the earnings of up to $10,000 tax-free.

Alternatives to Single Mother's Dream

Be sure to consider all alternatives. Five years may be too long to wait or $64,000 may or may not buy the house you've always dreamed of having. If you simply can't afford a house in the desired time you might like to consider other ways to obtain a home such as buying a home along with another family member or someone you can trust. You then could divide all costs, childcare, and chores that come with owning a home.

Take advantage of any tax breaks. If you are filing as the head of the household, claiming childcare expenses and the $500 tax credit for each child under the age of 17, you can save up to hundreds of dollars off your federal tax bill. With the assumed income bracket of $26,000 used before, it will make you eligible for an $850 earned income credit. Keep in mind this is one of the few times the IRS will pay you.

Last but not least keep in mind funding for your retirement.

With these guidelines in mind and examples given of how much money you need having a certain income, you can achieve purchasing the home you've always dreamed of. Stay motivated, don't lose hope and you and your children will live the dream you've always dreamed of having, your very own home!

By Kathryn Spencer

Money Saving Tips. Maximize Savings on Everyday Items!

2008-06-13T22:37:00.001-07:00

Frugal living is more than a lifestyle. It's a passion. Call Me Crazy! I love It!

Why, who wouldn't love getting paid to buy products that they use everyday?

Here's how I do it.

I purchase an item that has a rebate offer (either a store or manufacturer rebate) while it is on sale and use a coupon during purchase. That's it! Using this formula I almost always come out ahead. When all is done, I've gotten back more than I actually paid for the item.

Even when I do have to pay for the items like deodorant, shampoo, soap, toothpaste, and toothbrushes it's about 50 cents for a item that would cost up to $2 -$4 originally.

Am I the only one out there that gets excited about this? I doubt it! At least I hope not. That would make me "Crazy", wouldn't it? But a lot of folks just don't know how to combine money saving measures to maximize savings.

My local drugstore (which by the way is a national chain) often advertises items free after rebate. Hey, that cuts down on a lot of work for me. Easy Money! I e an also lucky enough to have a grocery store in my area that offers rebates and offers double coupons (sometimes even doubling $1 coupons as a special promotion). Needless to say, with six mouths to feed (myself, my husband, and four kids) I'm lovin' that idea!

As the editor of www.simpledebtfreeliving.com, I'm always looking for new ways to save money. Visit us and follow one of the e-mail links to share your ideas or just let us know how excited you get about frugal living! Let me know I'm not the only one. Then we can put my family's worries to rest. They think I'm really crazy.

Here are a couple other ways that I save on items we use everyday:

1. Always use items that are reusable rather than throw away

For example: Reusable coffee filters, cups and plates, and my favorite pet peeve -

The great sandwich bag conspiracy

The major manufacturers of sandwich bags would lead us to believe that it takes rocket science to keep a sandwich fresh. Ask yourself this, How long do you need to keep that sandwich fresh anyway? It's not like it's going to the moon. It's just going to the office or school for a few hours.

The most practical way to approach this is to purchase reusable sandwich size containers. This is also very environmentally friendly reducing a great deal of waste. If however, these have trouble finding there way back home ( which is likely if you have children), you can save substantially if you purchase the plain old pleated sandwich bag that cost a mere fraction of the razzle dazzle zipper kind. Your mother used these for years and years with great success. I have used both methods for years and have never received a complaint of a stale sandwich!

You'll find that doing these little things like, using real cups and plates instead of paper or plastic throw away, and recycling containers for storage or even to use in craft projects, can save a lot of money. Each by itself may seem minor, but when put together amount to tremendous savings over time.

2. Don't buy it if you won't use it. Things like small kitchen appliances, repair tools, and gardening tools are good examples. We know they'll make our life easier if we just had the opportunity to use them.

There are 101+ small countertop kitchen appliances available to chop it, grind it, mix it, open it, bake it, grill it..well you get the message.

Simplify your life and narrow it down to a couple you just can't live without. For me it's my blender and my food processor. Although, I'm seriously considering a bread maker. Not quite sure if it's worth the money yet. Especially when I'm so close to a bread outlet. But, you can't beat the taste of fresh baked bread. I'm not counting the coffer maker it's kind of standard equipment these days. I wouldn?t dare ask you to give that up! What am I crazy? Well , maybe..

It's little things like the example above that identify frugal living.

3. Always get the best value for your money. Shop around. If this is a major purchase you will want to know what to look for. Research and compare products on the internet or in sale flyers. There's nothing more challenging to the retailer than an informed consumer. That's what you want to be. An informed consumer knows when it's a good value! Informed Consumer - More Savings

By Cheryl Johnson

Budget Planning - Its Elementary My Dear Watson

2008-06-13T22:36:00.017-07:00

Does it feel like you have to be Sherlock Holmes to solve the mystery behind balancing your personal budget? Are you living a mysterious thriller where your realization of "financial independence and security" is a vicious repeating cycle of debt? Don't be afraid?...Somehow you've ended up lost in the "plastic zone". ' The "plastic zone" is a scary place. But you're not alone. There are millions of people today living the same mysterious life in the plastic zone. Remember green money? You know, that green paper with presidents proudly displayed on them. They have virtually disappeared from the "plastic zone." Is real Money a foreign object to you? Is the balance of your checking account mysteriously stuck at Zero? It's time to solve the mystery.

You don't have to be a financial wizard to solve this mystery. And you certainly don't have to be Sherlock Holmes. You see it really is an elementary concept. If you ask any elementary school student they'll tell you that you can't take 10 from 5. There can be no negative integers in this equation. Simply put, you can't spend more than you have! You have to fit your "living" within your "means."

For most of us living in the plastic zone, this means making some serious changes in our spending habits. It seems an impossible feat to reduce debt while still building a foundation for your financial security and independence. It Can Be Done! And it is "elementary my dear Watson!"

KNOW WHERE YOUR MONEY GOES!

~The first step is to realize where your money goes. How are you spending it? This requires a little recording keeping but is not difficult. Simply write down every purchase you make, that is not a monthly bill, for at least a week. This includes every check, debit, credit card, and cash transaction made (if married, your spouse must do this also). When finished sort these into appropriate categories to plug into your budget later. For example; dining out, lunch at work, groceries, coffee, gasoline, snacks, well you get the idea.

~Second lets tackle that debt. The monkey on your back will always insist on being fed until you take control of your money and say NO MORE! Make a commitment to stop using the credit. You must make a decision to invest in yourself from now on. Not the credit card companies. Take control by knowing what you owe , what you're paying, and how much it is costing you. Make a list. Include Creditors Name, Amount Owed, Interest Rate, Current Minimum Monthly Payment.

Add up all of your current minimum monthly payments. This is your monthly debt reduction payment for the life of the debt. You will pay this consistent amount each month until the debt is paid in full. Roll down freed up monies from one creditor to the next as accounts are paid. For example: your list of payments include a visa you must currently pay $80 per month. You will make that $80 payment regardless of the minimum due (unless for some reason the payment goes up) until the debt is paid. When it is paid you will take that $80 and apply to another creditors monthly payment. This is the secret to paying them off before you die! And, still have time to enjoy a debt free lifestyle.

~Next, you have to write down regular monthly expenses. Things like the mortgage, cable, phone, electric, car payment,. Any expense that you pay every month. Insurance payments can be included if you pay monthly payments instead of a lump sum. Some of these expenses may not be the same each month ( like the electric bill). You should figure an average monthly amount for these. If your provider offers a budget plan where your payment can be a consistent amount each month, this makes budgeting these bills much easier. So do it!

~Now figure in the variable expenses. These are things like car maintenance, home maintenance, property taxes, income taxes, insurance's that are not paid monthly, pet care (vet bills, and medicines), your family's medical expenses (physician co-pays, deductibles, prescriptions (or prescription co-pays). Go through your financial records and write down every expense you can find that did not occur on a regular monthly basis. When you're done, add the total amounts for the year, divide by twelve, and this will give you an estimate of what you should be setting aside each month to budget these expenses. This is a variable expense monthly allowance to be included in your budget as a monthly expense. You set aside this amount each month (maybe in a savings or second checking account).

This is one of the most important steps in the budgeting process. The one step that most of us forget to do. The biggest budget busters are these "unexpected expenses". They're not really unexpected. Most of us just have a tendency to treat them as if they are unexpected. You don't plan for them. Consequently you will not be financially prepared when they need to be taken care of. You know that the car and home require some level of maintenance, but do you actually have a plan to pay for that expense? Or, when the hot water heater goes up, will you be forced to resort to the help of the credit card companies. This is what they hope you will do. Of course the property taxes have to be paid. Will you have the payment when it is due?

To reduce debt and maintain a successful budget you have to plan for these "variables". If not, you will inevitably use the credit cards to bail out and you'll be defeating yourself. The variable expense allowance in your monthly budget will allow you save for these expenses and will be your defense against creating more debt. This is an essential step in building financial security, investing in yourself, and remaining debt free.

~ Set a reasonable amount for your monthly savings allowance. This will be an emergency fund that can bail you out in case of tragic circumstances such as a serious illness or unemployment. Start with 10-15 % of your income and cut back to as little as 5% if you need to balance the budget. But, do save something! Anything is better than nothing. If you have to start small, as your finances improve, you should increase your savings allowance to reach at least 10% of your income.

Of course, once you have all of these figures in place you may find that you don't have enough money to cover all the expenses. You not alone. I was amazed at how much more I was spending than I was earning. It finally made sense to me why I couldn't get ahead. Why my debt kept increasing no matter how hard I tried to budget. This is when you have to start eliminating unnecessary spending, trimming down expenses by using some money saving strategies, or possibly considering an extra income.

It isn't always an easy process. It depends on how much of your spending is "unnecessary", how much you're paying out for debt, and how much you want to be free from debt and financially independent.

One things certain, if you take control of your money, and are committed to living debt free, you will find success. If you just keep doing what you're doing, things will not change, but will inevitably get worse. You will continue to invest in credit card companies, spending money that you don't actually have, and don't have a plan to pay back.

So start with a good spending plan that cuts out unnecessary spending, reduces monthly bills and expenses to the bare minimum, and eliminates credit card use. Save money in every area of your budget. Remember, $10 a month doesn't sound like a lot. But, a savings of $10 per month is $120 per year that you can apply somewhere else in the budget.

Every dollar you free up helps bring the budget into balance. Helps you live within your means. Don't spend more than you have. It doesn't get any more elementary than that!

Good Luck and Success! Live Debt Free to Be Free. You Deserve It!

By Cheryl Johnson

Top 10+ Ways to Jumpstart your New Year's Finances!

2008-06-13T22:36:00.015-07:00

Of course, these don't have to be done in any particular order! Just pick one or two that particularly apply to your situation.

* Create your 2005 filing system. This might include new file folders, a new box to hold them or space in a filing cabinet with easy access. Mp>

* Set up a folder to collect all the important 2004 tax documents which will be arriving soon. Sure to arrive at your house are W-2s, 1099s, mortgage statements, etc.

* Set up an appointment with your tax professional early so you get the appointment of your choice. This also gives you a deadline to get your information ready! If you're self-employed, the next quarterly estimated tax payment will be due on January 15.

* Review last year's investments especially in your 401(k), IRA's etc. Find out what financial planning resources your company or 401(k) plan administrator offers and set up an appointment to talk to them. For non-company portfolios, talk to your investment advisor. You have until April 15 to make contributions to IRA type accounts (check with your tax preparer for eligibility).

* What about Quicken or Microsoft Money? If you don't use software to balance your checkbook, pay your bills and keep track of your savings and investments, this is a great time of the year to get started. My personal favorite is Quicken and for small businesses, you might consider Quicken Home and Business. If you are a small business with Payroll needs, check out QuickBooks.

* Medical Insurance reimbursements. If you haven't submitted all your medical bills to your insurance provider, now is the time to do so.

* Will and Estate Planning. No one likes to think about dying, but the best thing you can do for your family is to make sure they are taken care of by creating a will and making sure you have adequate life insurance. Think how easily you'll sleep knowing you have provided for your family even if you are no longer there.

* Speaking of insurance? If you haven't reviewed your health or home and auto policies in the last couple of years you might find you can save money and/or have better coverage. For example, if you still have a $250 deductible (which was my first deductible in 1979!), you will probably save by increasing it to $500 or $1000. Try to set aside some of your savings for deductibles in case you need them.

* Create your own Anti-Emergency Fund! We all know those car and home repairs, school fees, medical expenses and vacations are going to happen. Why not determine how much you'll need and save 1/12 of it each month? To read more go to: http://www.phelps-creek.com/archives/Anti-Emergency.htm.

* Holiday Bonus or Money Gifts If you received a financial gift this holiday season, hold on to it for at least 30 days while you decide what you really want to spend it on. All too often financial windfalls are spent before they even arrive. Consider dividing it into thirds: 1/3 to the past, 1/3 to the present and 1/3 to the future. Past might include paying down debt, present could be something you need or want now and future could be retirement, college savings, or a special vacation

* Financial Goals for next year Think about where you want to be next year at this time financially. If you want to save $1000, put aside $2.74 each day and you'll be there! Break down your financial goals into monthly, weekly and daily amounts and watch how quickly your savings will grow. Read more about it at: http://www.phelps-creek.com/archives/PDQFactor.htm.

By Cindy Morus

Save Money on your Clothing Budget. Tame the Closet Monster!

2008-06-13T22:36:00.013-07:00

Reducing the clothing budget was a serious challenge for me. Two pre-teen girls and a teenage girl certainly didn't make life any easier. My son wasn't much of a challenge. Thank goodness, he's not "fashion conscious".

The girls on the other hand were greatly disappointed in the new methods of clothing acquisition. Freebies, thrift stores, yard sales, consignment shops, and clearance items weren't exactly their style.

I found that changing the way I approached them on the subject made things a little easier. For instance we don't buy "used" clothing. We buy "previously owned, unwanted, or gently worn" clothing.

I strongly believe that knowledge is power. And, if you want to save money on anything, you must do your research! Informed consumer = More Savings, that's my motto. It took some shopping around for me to locate the best clothing value for my money. I did eventually find the one place where I consistently find excellent values with a great variety of choices.

I find most of my clothing "treasures" at a thrift store about 15 miles from my home. It's well worth the drive considering the great values I come away with! My cost per item averages about $3. I rarely spend more than $5 and once in a great while I'll splurge on a $6.95 item (usually new with tags still intact and a super value compared to the original price)

The thrift store where I shop is owned and operated by the National Children's Center , a local organization that provides educational services, early intervention preschool, and child care to infants and young children with and without developmental delays.

You will find that many of your local thrift stores are non-profit and support worthy charities.

I get a terrific value on name brand clothes popular with my girls peers, (Old Navy, Zana di, Paris Blues, Angel, Lei, Guess, Levi, Bubblegum, Mudd, limited Too, Adidas). Well there's not much I haven't been lucky enough to find at this store.

As a bonus my purchase also supports a worthy cause. And let's not forget that recycling these "unwanted" clothes is environmentally friendly. Everybody wins with these kinds of purchases. These are important benefits that ease the embarrassment children sometimes experience when they shop at thrift stores.

If your children are informed of all these benefits, they have the power to explain why they shop at thrift stores, if it ever comes up, and it doesn't have be for financial reasons.

The wonderful part is, it will probably never come up in a conversation with their peers. My children have never had to explain themselves. Most items are of good quality and only gently used.

You would never know we are enjoying a frugal lifestyle with a wardrobe like this!

In fact, with their closest friends the girls freely brag about the terrific deals we get on clothing. Some of their friends are even envious because of the wide selection of popular brand name jeans the girls are fortunate to own.

They have come to the realization that five pairs of name brand jeans at the thrift store is a whole lot better than one at the department store price.

I have found many brand new items with tags still intact. No way for friends to know where these great clothes came from. They probably assume they shop at some expensive department store or specialty shop.

We actually have fun shopping at the thrift store now. I have even caught a hint of excitement in them from time to time. Maybe my excitement for saving money is rubbing off.

Not! I think it's just the fabulous clothes we find! I know the saving thing will kick in later. That's what counts, teaching them how to be financially independent in life.

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Besides visiting your local thrift stores you should check out these other great resources for low cost clothing.

Clothing needs change so often for children. When you consider they grow so rapidly at certain stages in life, it just makes good sense to reduce cost on clothing.

Spending $30-$50 on one pair of jeans is just wasteful. They will only get a few months of wear before they grow out of them or decide they don't like them anymore!

Yard sales are great resource for anything you might need. It may be a little more time consuming to go this route, but the rewards can be great.

If you plan your yard sale trips correctly you can save a lot of time. As you become an experienced yard sale consumer, you will learn where yard sales are frequent in your area.

Combine this information with advertised yard sales in the local paper and on roadside signs and organize your trip to minimize your travel time.

You will sometimes find bags of clothes for a great "take all" price. Even if everything isn't usable you will usually get enough useful clothing to make the purchase a good value.

Make sure the clothes are in the right size range or are something they will grow into within a reasonable amount of time. If you have the time and purchasing items individually is an option, go through the bag. Purchase only what you know will be useful.

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Consignment shops are rapidly becoming popular. Not only can you find some bargain purchases here they may be a valuable resource for you to turn your unwanted items into money. You let them do all the storing, selling, and paperwork, all you have to do is collect your money!

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I have a friend who sells all of her unwanted "designer" clothing on the E-Bay auction site. I have not ventured to purchase clothing on ebay myself as of yet, but have purchased many other items such as books, movies, and gifts.

Ebay is a great resource for new and pre-owned items, including clothing. Especially if you are geographically limited as far as shopping goes.

Of course there are other auction sites where you might find clothing.

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In conclusion your best defense against overspending is information.

In the end the best value for you is what works best for you. And, what's available to you in your area. Investigate all your options and determine where the best value is based on your own needs. Yes, I'm going to say it again! Sorry.

Informed Consumer = More Savings

Happy Saving!
Live Debt Free to Be Free. You Deserve It!

By Cheryl Johnson

Budgeting your Savings - Did You Let Your Piggy Bank Get Away?

2008-06-13T22:36:00.011-07:00

I think most of us have at some point in our lives. Some how we forget to feed the little piggy. And, like most neglected "pets", your piggy bank will disappear if you don't feed it. A personal budget is important to create financial independence and setting goals for feeding that "piggy bank" should be an important part of your budget!

The most successful financial plans allow you to INVEST IN YOURSELF! It just makes good sense. A plan to build financial security should always be considered essential to any budget.

Even if you're on a plan to reduce debt, you need to include plans to build a foundation for future financial security. A good savings routine and variable expense account are essential to building a strong foundation for financial independence.

A variable expense allowance in the budget is important to save for those expenses that seem to "hit us unexpectedly". Funny thing is, we know these expenses will occur. They are an inevitable fact of finances for most of us. So, why do we call them unexpected? I can't explain why, but there are many of us who make this very BIG mistake in our budgeting.

Some expenses don't occur monthly. Some are paid out every now and then, quarterly, yearly, or bi-monthly, or semi-annually. These are expenses like car insurance and maintenance, home insurance and maintenance, property taxes, income taxes, medical expenses (prescriptions, deductibles, co-pays), pet care, school expenses (supplies, trips, activity fees, books), and clothing. Some of these are huge expenses that can put a ripple in any good budget if not planned for.

Most of us have good intentions, but it's easy to fall prey to the credit card companies without a plan to cover all of these "unexpected" expenses. The term still makes me chuckle. I mean, don't we "expect" to wear clothes? It's even funnier to me knowing that I was guilty of this very thing. Poor Planning! Not expecting what should be expected.

Lesson ???.Don't forget about this expenses in your budget. They will sabotage the best of intentions!

The other essential ingredient to a successful budget is a savings plan. A good savings plan should have a goal to reach at least the minimum amount necessary for you to survive for a three to four month period. It may take time, but this a strategy that provides a fail safe against a financial crisis. Crisis such as serious illness or job loss.

Trying to save money by cutting your savings budget out will eventually backfire on you. It is essential to build financial security, in order to remain debt free, you must not compromise your savings expense.

Only if there is no way to avoid it should you reduce the amount of your monthly savings commitment.

Start with 2-4% of your monthly income if you have to. A little is better than nothing, and then you can build it up from there to at least 10% of income as funds become available.

Some Important Points:

Applying extra funds to your debt first will not help you gain financial security. Emergency savings and variable expense savings goals should be met before debt is reduced in order to remain debt free. After all, these sources will be the foundation you will fall back on in order to remain debt free. If you can build a reserve for emergencies you won't have to use those nasty credit cards. This is an important defense that builds financial security. If you use a good debt reduction plan, debt will reduce, and in a reasonable amount of time. As long as you stop creating debt. Just be patient.

Paying more on your debt, instead of saving, is not going to help you pay for that major car repair when the car breaks down. It will most likely do the opposite of your intended plan and send you running for the credit card to bail out.

Of course once you have reached your goals for savings and your variable expense account, then you should start applying extra funds to your debt reduction plan.

Using money saving tips reduces expenses in your budget in an effort to help you build that financial security. Through saving money on everyday expenses and living a frugal lifestyle, you free up monies to apply to your savings and variable expense account. These are the defenses that build a strong foundation for your financial independence.

These "defenses" prepare for the inevitable expenses that will arise. Many of us had just forgotten to plan correctly for these types of expenses. That's how we got in the "big red mess" to begin with. Properly preparing for necessary variable expenses is your defense against feeling the need to use the credit cards.

Once you have balanced your expenses with your income, you have created a Budget for Debt Free Living. Congratulations! You are on your way to financial freedom and security. Enjoy! This concept is simply "living within your means." Something that many of us in today's "plastic society" have forgotten to do.

Live Debt Free to Be Free. You Deserve It!

By Cheryl Johnson

UK Graduates Looking Short-Term At Their Long-Term Financial Responsibilities

2008-06-13T22:36:00.009-07:00

With almost two thirds of university entrants from England and Wales who applied for maintenance grants for this year being unsuccessful, and the average graduate owing £13,501 when they leave, according to Barclays, combined with a survey by High Fliers Research showing that only 21% of students were confident of managing to enter a graduate-level job this year, it is not surprising that there is a feeling of gloom hanging over many UK university entrants.

According to a survey of students from 30 institutions; 63% believed there are not enough graduate jobs for everyone leaving university this year, with a fifth stating that they felt that there were only limited jobs available.

Jeremy Law, the head of student and graduate banking at Barclays said, "If this trend continues, students starting a three-year course this September could be graduating with debts of almost £20,000?graduates will find themselves with debts for years to come which may affect their ability to buy homes and invest in pensions?prince or pauper, these levels of debt may act as a deterrent to some people considering going to university."

There are sources of help advice available to prevent student's finances snowballing out of control, with important financial institutions such as Moneynet and other online comparison web sites providing guides to help students with their money, and Barclays Bank recently encouraging students to;

"Consolidate their borrowing and pay off the debts with the highest interest rates first by making use of the cheapest borrowing options, for example, interest free graduate overdrafts or graduate loans?where possible graduates should keep a tight reign on their finances to help set them up financially for the future."

With increases in general levels of graduate debt, negativity surrounding job prospects, and the government concerned with meeting its 2010 target of getting 50% of the under-30s into university, you might expect trepidation over long-term debt to be entering into the psychology of both students and government alike, however this does not, overall, appear to be happening. The government is determined to continue with its plans, and students are still racking up huge student loans and personal debts by focusing on everyday financial pressures, rather than their future.

While worries about money add to their levels of depression, anxiety and stress, university students in Bath declared that it was the short-term lack of cash for paying bills and covering everyday expenses that caused them the greatest concerns.

Students interviewed By Dr Adrian Scott of the University of Bath indicated that, "They think there's nothing they can do about the debts, so there's no point worrying".

A report, conducted for Liverpool Victoria has suggested that in 18 years time when today's 'Child Trust Fund Generation' go to college, English student debts will average approximately £43,825 which would be about 83% of their first years graduate salary. A worrying figure, but one which does not, according to Liverpool Victoria; "take into account that there is a big push by some universities to get the cap on top-up fees lifted and this would have a massive effect on these figures - probably doubling or tripling the debt."

Dr Scott also found that students were becoming more accustomed to the idea that they would have substantial levels of borrowing, and their perceptions of what was considered an acceptable level of debt was changing. Cognitive strategies rather than financial adjustments were occurring to justify long term debt instead of dealing with it head on. An annual Unite/Mori survey analysing student attitudes, published earlier this year, showed that students were becoming increasingly acclimatised to the idea that, as a student, they would have to acquire certain amounts of debt, which would need to be paid back after graduation. Possibly a major shift in attitudes towards debt will occur should the cap be lifted on top-up fees, but presently students are not being put off going to university by the idea of starting their working life shackled with debt.

Overall personal debt in the UK is increasing at a rate of £1m every four minutes however the rate of change in the levels of student debt are accelerating far faster than the already worrying UK average (five-fold increase in total graduate debt over the last decade). If no change is made to the graduate jobs market or to student funding, and future graduates are to avoid running the risk of being branded an adverse credit risk at the start of their earning career, then they need to take the financial bull by the horns at an early stage, and take long-term financial planning seriously whilst at college, to reduce their arrears on leaving rather than looking to the never-never.

Resources: Moneynet University of Bath

By Richard

Retirement Income Needs---Less Than You Think?

2008-06-13T22:36:00.007-07:00

It is widely written that you need 75% of your present income to maintain your present life-style in retirement. If you make 100 thousand now, figure 75 thousand in retirement.

Fifty thousand now, figure 37.5 thousand in retirement. The average retirement income in the US is 27 thousand. See what you think after reading these ideas.

Some really significant expenses you won't have in retirement:

1. Life insurance. Usually paid up by now or it has run its course. Also there is little need for it. No premiums to pay.

2. Mortgage payments. Houses are usually paid off by now.

3. Child-rearing expenses. A big one. Unless you got a really late start.

4. College costs. You saved for it and then paid for it over many years. See #3.

5. Work expenses. Transportation, clothing, lunches, etc.

6. Large house. Selling and moving into smaller digs can add significantly to your nest-egg and reduce expenses for taxes, maintenance, insurance and utilities. A reverse double whammy for this one.

7. Automobile expense. It/they should be paid off and might be used less.

8. Credit card payments. Most everybody has learned by this time not to have this debt.

9. Some people move to an area where the cost of living is very significantly lower.

10. Last and this is my favorite. You don't have to save for retirement anymore!

Jot down a figure for each one and see what you get.

These are some further considerations that might reduce your expenses. Where is it written that you won't want to change your life-style at all? After all as we get older our tastes change, often towards those activities that cost less and we appreciate simpler things.

A walk on the beach or in the quiet woods, in the morning sun or even in a light rain can be as enjoyable as anything. Some of the best things in life really are free. A cold winter evening by a warm fire with a great book (free from the library), a visit with the grandchildren and pulling vine-ripened tomatoes from your own plants are more examples of inexpensive activities. Who needs a riotous evening in a nightclub or an expensive day at a casino?

Linger over coffee and the newspaper in the morning, have breakfast with friends, take a little nap in the afternoon or day trips to attractions like museums, planetariums and nature exhibits. Aren't there things you always thought you might like to do and explore like writing, playing music, dancing, sports (non-contact) and crafts and hobbies? These need not cost a lot.

Also remember you are free to take advantage of early-bird specials, two-for-one nights and eating out at lunchtime instead of dinner. These can save as much as half on restaurant bills. Don't forget senior citizen discounts, either.

What might cost more now that you are older? Health care, of course. Putting these in table form:

1. Health insurance premiums. Mainly Medicare supplemental insurance. Figure 2000 dollars and up.

2. Prescription drug costs, both premiums for insurance and out of pocket expense. Most medications not yet off patent (have no generic) are 800 to 1200 dollars a year each. The arithmetic here is easy.

3. General out-of-pocket expense.

4. Long term care or nursing home care. Premiums for insurance if you elect to buy it, although the jury is still out on whether or not you should according to a leading consumer's magazine. The biggest expense of all is nursing home care if you have no insurance. People who have good support can often remain at home for a long time utilizing home care facilities, which costs a lot less.

Naturally every situation is different. Hopefully these thoughts will help you in your calculations. If you add up all that you don't have to pay and what you can reasonably expect to pay and can avoid a long nursing home stay you may need less than you thought.

A recent article in Money magazine had a good idea. During the last year before retirement, try to live on what you expect to have, pretend to be retired. If it is comfortable, you are probably good to go.

Play music like you always wanted. Gain the knowledge you need to learn rapidly and cut out most of the practice drudgery. Dr. Moloney is a retired Family Practitioner with a lifelong interest in music and teaching. Empower yourself to take charge of your music learning by studying his E-book.

What's New in Checking - From Designs to Photos

2008-06-13T22:36:00.005-07:00

Just about everyone has a checking account. Checks present easy ways to make payments and they have simply become a way of life. Most checking accounts are pretty much the same, but there are some ways that you can make the most out of your personal checks.

For years, there have been many companies that print personal checking supplies. They've been for sale at the bank, through the mail, and on the internet. Each check printer has developed their own designs, while sharing some similarities.

The new breakthrough in check personalization is the photo check. Thanks to the digital era and email capabilities we are now able to get your new checks with your own style, straight from your digital camera or scanner.

Here's how photo checks work. All you need to do is take a picture. It might be of your family, a favorite scene, or your family pet. When you go online to order your new check blanks, find a company with a photo check option. You'll order the checks and send in a jpeg image that you want for the background. They'll take care of the rest.

They get a check order, and you get the most personal checks that money can buy. Photo checks have been available for just about a year, and it is only getting easier to get them. More and more check printing companies offer the service. The prices are slightly higher for the photographic checks, but they are still quite reasonable. The checks will arrive at your door in just a couple of weeks or less.

When ordering checks online, make sure that you are checking into the many other products that the company offers. Most of the retailers also stock other valuable home office supplies. Getting all your supplies at the same place makes life much easier.

By Robb Ksiazek

Budgeting is Essential for a Single Mothers Success

2008-06-13T22:36:00.003-07:00

Today many women are struggling with debt and it's even harder if you are a single mother trying to support your family. According to the Census Bureau single mothers far outweigh single fathers. In 2003 there was a total of 2,260,000 one parent family groups maintained by the father and 10,142,000 one parent family groups maintained by the mother. This is also why many single mothers find themselves diving into debt.

So if you are one of those single mothers struggling to get by, you are not alone. Whether you are going through a divorce or the father is absent most single mothers face the burden of supporting themselves and their children all on one income.

Did you know that only fifteen percent of women going through a divorce are awarded any form of court-ordered spousal support? Unfortunately, thirty-four percent of those women never receive what is due to them. Less than half of the women who claim child support ever receive the full amount. As well, within the first year of divorce a women's average standard of living falls forty-five percent while a man's will grow fifteen percent.

So as a single mother it is important to steer clear of debt, which is where SingleMotherResources gives you a variety of things you can do to prevent yourself from further debt. Budgeting is a key factor in helping so many people get out of debt and stay out of debt. The core of budgeting is for you as a single mother to see your monthly spending needs and habits.

The purpose of a budget allows you to track your personal cash flow. Your personal cash flow is how much money comes in and how much goes out. Adding up your monthly income is easy, but totaling up all your expenses takes a little bit of work. First, you'll want to collect all your bills, your credit card statements, your checkbook register and all receipts including anything you buy with cash.

If you haven't been keeping good records, you may have to get a receipt of every dollar you spend for a month before you put together an accurate budget. Track you expenses by making entries in a notebook or learn how to in Microsoft Excel.

Now divide your spending into fixed costs and variable costs. Your fixed costs will include such things as mortgage payments, rent or loan payments. Your variable costs will include such things as clothing, food and entertainment. Now that you know how to budget, you need to learn how to stick to one.

Once you are managing your spending, you can easily decide which costs as a single mother you can cut and which you cannot. In most cases as soon as you see how much you are spending on your morning latte and breakfast item, you will be motivated to cut back. Stay motivated by setting goals.

Single Mother Resources is a great guide to get single mothers back on their feet and enjoying life. Before you know it, you'll be debt free and be able to spend more time with your children opposed to dealing with the harassing phone calls from creditors and collection agencies!

By Kathryn Spencer

How Check 21 Affects You

2008-06-13T22:36:00.001-07:00

The Check 21 Law is the new federal law for financial institutions and has taken effect last October 28, 2004.

Before the Check 21 law was enacted, your paper check had to be physically transported from where the check was paid out before it could be deposited to the financial institution. Now, even if it has always been prudent for you to keep money in your account to pay for the checks you've issued, this law makes it imperative.

Here are some of the other effects The Check 21 Law will have on you and fellow consumers.

You will no longer receive the original paper checks you issued, as your bank won't have these.

The probabilities of your checks clearing sooner have increased. If you don't have funds to cover this amount, your check will bounce. So don't make out a check when your checking account has insufficient funds, you'll be severely penalized.

On the minus side is, you will not be able to access the funds you've issued a check for, as the new law doesn't include shorter check hold times.

Because of the shorter time in process the checks, your banks will be able to save money in processing your checks, but they are not required under the law to share these savings with you.

For each kind of copy, your check will have different rights attached with it. For instance, Check 21 has created a new paper copy of an electronic image of a check and is called the "substitute check." This substitute check can be a legal equivalent of the original check, and right attached to this, is that only a substitute check triggers your right to recredit of disputed funds.

The regular copy of a check does not have this same kind of protection. If you ask for a copy of a check, your bank can send you an ordinary copy instead of this special kind of copy which triggers legal rights and protections unless you specifically ask for the substitute check.

A second bank other than your issuing bank can have your original check and under this law, has the right to decide if it will keep or destroy your check. Before enactment of Check 21, your own bank could decide how long they should keep your original checks, if you didn't get these back together with your monthly statements. Under Check 21, the bank of the person you wrote the check to may decide when to destroy your check.

Under the Check 21 law, you can have funds of up to $2,500 recredited to the your account in 10 business days if the check is paid twice, paid for the wrong amount, or otherwise paid in error. However, a gray area exists, does this new right apply when a paper substitute check is used in the processing of the check but is not returned to the consumer? The regulations apply this recredit right only to the consumer who was provided with a substitute check. If the check was electronically processed by all the banks it was routed through, and the consumer was not provided with a substitute check, then the check remains under state check law.

If you want to safeguard your rights, you can request for a return of "substitute checks" you issued together with your monthly checking account statements. One possible difficulty lies in the amount you may pay in getting these checks back, change banks if these are too high!

In essence, what the Check 21 federal law has done is shorten the gap financial institutions take in processing checks. This new law has enabled financial institutions to scan paper checks and to send images of these same checks for electronic processing. This law is an efficient and faster way to process check payments.

If you need information that is more detailed about your rights on the Check 21 law, access the Federal Reserve Bank website and request for these materials:

Consumer Guide to Check 21 & Substitute Checks and what you should know about your checks.

By John Thomson

How to Attain Your Dreams on a Single Income

2008-06-13T22:34:00.015-07:00

What is a Traditional IRA?

2008-06-13T22:34:00.013-07:00

With a traditional Investment Retirement Account (IRA) you pay taxes when you take the money out at retirement in the future. Make sure that this account is really worth opening in your situation because what you put in the account today may be fully deductible, partially deductible or non deductible, depending upon your income and other retirement coverage. If you contributions are not fully deductible then this account is probably not for you.

The traditional (and Roth IRAs) allow you to save $3,000.00 in 2004 and $4,000.00 in 2005. If you are over 50 years old you can save an additional $500.00 as catch-up. You put the maximum amount in if you (or your spouse) are not covered at any time during the tax year by a retirement plan, including a 401(k) account, at work. If you can't afford to save the maximum then just do the best that you can.

If you are single or a head-of-household taxpayer with annual adjusted gross income (AGI) between $40,000 and $50,000 and are eligible for a company retirement plan, your deduction will be reduced. Deductions are also limited for married couples filing jointly or qualifying widows or widowers who earn from $60,000 to $70,000 per year.

Even if you don't have a retirement plan at work, your deduction may be limited if your spouse, with whom you file a joint return, has a company pension plan. In this case, your deduction will be reduced if your joint income is between $150,000 and $160,000. No deduction is allowed if your AGI exceeds $160,000. If you have a non-working spouse, he or she can contribute up to $3,000 ($3,500 if 50 or older) to an IRA also as long as the two of you together make at least as much in annual income as you contribute.

As I said before profits and income from investments are not taxed until you retire and begin withdrawing funds. You can pay capital gains taxes on you stock market profits and then withdraw funds, without penalty, after you reach age 59½. If you take out money before then, you usually will face a 10 percent penalty, plus taxes on the withdrawn amount. Under certain circumstances, you can take penalty-free distributions before age 59½. In the year that you will turn 70½ you can no longer make contributions to your account. In fact, at that age you must start withdrawing money from the traditional IRA or face additional penalties.

This account is ideal for individuals in high tax brackets who cannot open or contribute to a Roth IRA and anticipate facing a lower tax bracket upon retirement. In other words, if you earn a lot of money now, pay a lot of taxes, can open a standard Roth IRA, and take the full deduction when you contribute then this account may be good for you. This is especially true if you anticipate low income in your retirement years such that you will also be in a lower tax bracket.

By Dr. Scott Brown, Ph.D.

Want Your Savings to Earn a Higher Rate of Return? Try Internet Banking

2008-06-13T22:34:00.011-07:00

Doesn't it seem like the only impressive numbers we've seen this summer are the digits on the thermostat and the unaffordable prices of homes? Real estate has been excruciatingly hot for the past few years, but getting in the market now puts you in the high-risk category for a heat stroke if the market decides to cool off this year.

So if a real estate induced stroke doesn't appeal to you and the stock market's roller coaster ride gives you motion sickness, it's very likely that you as a health-conscious investor are sitting on a stash of cash collecting an anemic rate of interest.

Don't worry, you are in good company. Even investment legend Warren Buffet is having problems finding fruitful investments. Buffet admitted in Berkshire Hathaway's annual letter to shareholders to having ended 2004 with $43 billion in cash equivalents and couldn't promise much success in utilizing the money in 2005.

If Buffet doesn't know what to do with his billions, you are probably thinking that you have no chance of finding a great place to put your billions either. Ok, your trillions. I didn't mean to belittle your nest egg.

Where can you stick your cash while you wait for better investment times?

How about online? Yes, I know Internet stocks stole your money in 2000, but Internet banks are giving it back in 2005.

Unlike the Internet gold rush of the 1990's where web businesses were run by high school students, many of today's Internet banks are simply online divisions of safe and time tested brick-and-mortar banking institutions.

Take ING Direct for example. ING Direct is the online division of ING Group, a Dutch based financial institution which is among the top 15 largest in the world. ING Direct opened its Internet doors five years ago and currently has approximately $29 billion in deposits. That would make it the "YAHOO!" of online banks.

But another online bank may actually make you yodel, "yahooo" after you glance at their annual percentage yield. Internet bank Emigrant Direct offers 3.50% APY on its savings accounts. What does your big commercial bank give you? 0.50%? At that rate, you're not earning enough to beat inflation. Maybe it's time you joined the Internet age?

Emigrant Direct is the online division for New York's Emigrant Savings Bank. Although a relative newcomer to the online banking scene, when it seems like interest rates are leaden with lead, Emigrant Direct is usually the first to raise them. At this point, brick-and-mortar banks would need to raise their rates quite a bit just to catch up with Emigrant.

So if you find yourself not enjoying the lazy interest rates of summer, you may want to log on to the net and see how an Internet bank account may boost your return this year. The interest rate you get may just burn as hot as the heat wave hitting most of America.

By Jon Galanty

Single Mother Resources Directs You Towards Success

2008-06-13T22:34:00.009-07:00

As a parent you are bound to face a few challenges but as a single mother you are bound to face challenges almost everyday. Raising a child is not meant to be done alone however today it is occurring more often then traditional value holders would like to see.

If you are a single mother trying to successfully raise your children you are among the many. There are a vast number of women that successfully raise their children. However there is also a great number of single mother's that must bear the burden of covering their own costs as well as their child's, all on one income. Whether you are working full time or going to school to better your education you have to make sure your child has proper care after school lets out or during the day while you are away. Whether this proper care is day care or a babysitter, they all come with costs. Many households today are faced with debt so it's not a surprise to see single parents in debt. With the stress of everyday life, it's important to not let your debt be ignored. Managing your debt right away is the first step, which is followed by finding out ways to reduce your expenses and paying the rest off. Answers to your questions and concerns about financial issues can all be found at the Single Mother Resources website.

There are many things you can do to make sure you stay out of debt or get out of debt fast. According to many sources along with singlemotherresources budgeting is a key factor in helping so many people get out of debt and stay out of debt. The core of budgeting is for you as a single mother to see your monthly spending needs and habits. The purpose of a budget allows you to track your personal cash flow. Your personal cash flow is how much money comes in and how much goes out. Once you make a list you are going to realize that you have a lot more money going out then coming in especially on unnecessary goods such as impulse buys at the grocery store checkout, or items that your children want. Instead of giving in and giving your child what he or she is asking for, it's best to tell them the truth that you can't afford it right now. Suggest that your child starts or continues doing weekly chores and in return you will give them a small allowance where they can save up for something they want. This way it will take the burden off of you each time they ask for something. Once they save up enough money they can buy it themselves and then feel as if they earned it.

As for yourself and your expenses you need to make a monthly budget and follow it. You need to have the will power to control yourself from buying unnecessary items at the grocery store or taking your children to the latest movie. Go see a matinee film instead where prices are lowered, and eat before going to the grocery store so you won't want to buy everything in site. Set financial goals for yourself and keep track of what you are spending. This way if you know Girl Scout dues are coming up, you can set a goal to put that money aside where you might have spent it on something else otherwise. Also by keeping track of what you are spending you might come to some realizations such as what you buy at the grocery store. Name brand products are just as good as generic minus the name so it's worth buying generic products; you'll be surprised in how much you save. Let your children be involved with budgeting as well. Have them make a list of chores they do and how much money they receive in return. They will see how hard work pays off. Keep in mind that owning something that you worked hard for creates something that no one can take away from you which is your pride.

Before you know it, you will be on your way to being a debt free mom and able to treat your children to something special. But remember, it's going to be difficult at first and you'll want to give in or give up, but in it's all worth it in the end. Single Mother Resources will help guide you to become a debt free mom as well as a successful mom in teaching your kids a valuable lesson in life; hard work pays off.

By Kelly K

Single Mother and Learning how to Save

2008-06-13T22:34:00.007-07:00

Saving may seem easier if you were saving for a new car, or a vacation however when it comes to saving in general it may prove to be more challenging because you may not necessarily feel you are receiving a reward from it. However saving pays off, especially as a single mother. All you need to do is simply spend less than you make each month.

You are going to want to establish a budget. First, make a list of all your monthly income. Next, list all your monthly expenses. This will show you how much money you have coming in each month and how much money you have going out.

Now circle your three largest expenses. For most of us, they usually are rent or mortgage, auto expenses, and food. Sometimes this could mean, selling your house and buying something smaller, or taking the bus opposed to spending more money and maintenance on your car. Your main goal is to get your expenses as minimal as possible even if it means giving up things you thought you could never live without.

People will find that by moving to a cheaper geographical area, an older apartment, and walking rather than driving will immediately free up hundreds of dollars per month. If you were working a second job, the amount of overtime you were putting in before or hours spent at a second job should start to decrease. The money saved from using new alternatives should go towards paying off debt.

Another great money saving tip is to cook and make lunch opposed to hitting the drive through or picking up a pizza for dinner. You can save hundreds of dollars by cooking.

Its easy to cook and can be fun too. Borrow cookbooks from friends or your local library. You'll be quickly amazed at how much there is to choose from, starting with breakfast all the way to dessert. Try to make about five meatless meals each week for dinner, but don't skimp out on the protein. Some good sources of protein are scrambled eggs, peanut butter on crackers or toast, cheese and fruit, yogurt, lentil chili, and bean quesadillas. It's important to eat healthy to stay healthy. Try using tuna, which is inexpensive and tasty. Eat it with bread or toss it on a fresh bed of salad greens and it becomes a quick main course lunch meal. Add some vegetable sticks and juice or water and your lunch is nutritionally complete and inexpensive.

Also, in order to save money on food, it is important to decide what you really need and what you can live without. Such as a latte on the way into work or brand name products. Coupons can be a great source to cut down costs. Cutting coupons can be a time consuming task so as a single working mother you should have allow your children to help if they are old enough to use scissors so you can multitask by spending time with your children and cutting costs.

Clothing is an important necessity however; where you buy it determines the cost. If your children are young you can get great deals at local garage sales, and thrift stores since they are bound to grow out of them in a short period of time. You can also buy furniture and household items here. You can find great deals at discount stores opposed to spending more money for a name brand shirt that is most likely made out of the same fabric. Also if you have other children in your family such as nieces and nephews ask for second hand clothes.

There are easy ways to reach your goals by cutting costs. Whatever that trade off is, whether it be trading in your car for a bus pass or giving up your house for a more cozy older home or apartment, cutting your food bill by cooking instead of getting take out, buying generic brands, and skipping out on treats you don't necessarily need you can save costs and reduce your debt. You can put all this saved money into a savings, pay off debt, or treat yourself and child to something special that you both deserve! Stay motivated and committed and you'll be debt free in no time!

By Kathryn Spencer

Safely Save for Your Childs University Studies Using An Education IRA!

2008-06-13T22:34:00.005-07:00

This investment retirement account (IRA) is useful to you as an investor to understand because it may be a good way for you to save for your kid's education AND save on taxes. These plans are now called Coverdell Education Savings Accounts in honor of the late U.S. Sen. Paul Coverdell. Individuals can make annual contributions of up to $2,000 per child into an account that's exclusively for helping to pay higher education costs. The money contributed to a Coverdell account doesn't count against the $3,000 ($3,500 if 50 and older) annual total individuals may contribute to their combined personal individual IRAs.

The earnings and withdrawals from a Coverdell account are tax-free, but you can't deduct the contributions from your income tax because the account is for the benefit of the child, not the contributor. This is great for parents who are good savers and investors who want to make an annual tax-saving contribution that they can invest in the stock market toward the education of a studious and responsible child. In addition, if your child received a Coverdell ESA distribution, you now can also claim Hope Scholarship or Lifetime Learning credits. Just make sure you don't use Coverdell money to pay for the same expenses you use to claim an education credit.

The beneficiary (your child) of the education IRA must withdraw the funds by age 30 if they don't go to college and pay taxes and penalties on it. However, the account can be transferred to a sibling or the beneficiary's child if they don't pursue a higher academic degree or use it all.

Once you have the account open you can use the stock market to help finance your child's education selling the stock at a high price after you have bought it at a low price using techniques such as I teach.

ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. "The Wallet Doctor", is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors by teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term "Irrational Exuberance." In 1998 he shouted to the world to "get out" of the stock market but now he is shouting to everyone that it is time to "get in!" The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing.

By Visit Dr. Brown's

Budgeting the Key to being Financially Stable

2008-06-13T22:34:00.003-07:00

Single Mother's in need of Financial Guidance

Budgeting is key to being financially stable. A budget is a systematic plan for the expenditure of a usually fixed resource, such as money or time, during a given period. As a single mother you might groan at the thought of putting together a household budget with all your expenses, but its easy to do and will also help you become very financially organized. Many single mothers find themselves facing financial problems every day.

A single mother faces many burdens of everyday costs for her children's well-being, as well as her own, that at times will leave her in need of financial assistance.

Shaping up your finances is particularly important if you are experiencing a life altering experience such as a marriage, divorce, new baby or any other event that changes your finances dramatically. Whatever the state of your financial life, developing a sensible budget will allow you to stay on track.

The core of budgeting is for you as a single mother to see your monthly spending needs and habits. The purpose of a budget allows you to track your personal cash flow, which is how much money comes in and how much goes out, usually recorded on a monthly basis.

Adding up your monthly income is easy, but totaling up all your expenses takes a little more effort. First, collect all your bills, your credit card statements, your checkbook register and all your receipts, even for things you buy with cash.

If you haven't been keeping good records of your spending, you may have to get a receipt of every dollar you spend for a month before you put together an accurate budget.

Track you expenses by making entries in a notebook or learn how to in Microsoft excel which is a great tool to use when creating a budget.

Now divide your spending into fixed costs and variable costs. Your fixed costs will include such things as mortgage payments, rent or loan payments.

Your variable costs will include such things as clothing, food and entertainment.

Once you are managing your spending, you can easily decide which costs as a single mother you can cut and which you cannot. In most cases as soon as you see how much you are spending on your morning latte, snacks in the vending machine or treats for your kids, you will be motivated to cut back. Be sure to stay motivated by setting yourself goals.

Being a single mom is hard enough but it's even harder when you are faced with financial burdens that you cannot cover alone. Living a stable and healthy life is important.

By Kathryn Spencer

How To Free-Up 10% to 15% of Your Income

2008-06-13T22:34:00.001-07:00

Would you be interested in freeing up 10% to 15% of your current income? Just imagine what you could do with this money. You could pay down your debts, increase your savings, or work toward that next important purchase that you have in mind. Wouldn't it be exciting to actually have money left over at the end of the month?

I know what you are thinking: "That would be nice, but not if I have to budget every dollar". What if I told you it could be done without budgeting? What if you could accomplish this in a week's time without too much effort? Would you take a few steps in order to improve your finances?

If you answered "yes", let's go through the simple steps required to make this possible.

Step #1: For a total of 7 days we need to track every single expense. This includes credit card, check, and cash purchases. For this program to really work you will have to track everything (even pocket change). The easiest way I have found to accomplish this is to use a blank check register and write down every transaction that you make for the next 7 days. And I mean every expense, even if you give your child a quarter for a gumball, track that expense. We need to collect the date the purchase was made, and the item that was purchased (this part of the exercise is actually most of the work, and really isn't all that time consuming - especially when we keep in mind the possible benefits).

Step #2: Once we have tracked every expense for the last 7 days, we then need to go through each of those expenses and evaluate them. What we are looking for is which expenses fall into the "wants" category, and which expenses fall into the "needs" category. As you try to identify these, let me give you some coaching? Is that Diet Coke habit every morning really a "need", or is it actually a "want" that could be cut back in order to improve not only your finances, but also your health? The idea is not to identify how many things that you enjoy that will need to be sacrificed, but to identify the items that you really could do without - and not suffer?

Once you have identified the "wants" that you don't really "need" in order to be happy, add these expenses up for the week. If you are the typical American you will find that these unnecessary "wants" will add up to approximately 10% to 15% of your take home income. In fact most people who do this program, are shocked to find that they really do waste a lot of money on things that they had no idea would affect their finances so dramatically.

Step #3: Commit to saving. This is probably the hardest part of the program, and within reason you have the freedom to choose your "wants" for the day or to choose your "needs". Now I know that some days that "Diet Coke" (or fill in your own vice here____) is an absolute "need". When you are having that kind of day, go ahead and reward yourself for being so good the rest of the week. But make sure that you keep your objectives in mind for the long run and commit to saving that money for the next day.

Now before you give up on putting these steps into place, lets realize the fact that the benefits of this program really do add up. In fact the average American making the average wages will find that they are able to free up $200 to $300 each month. You are probably thinking "sure, but that won't work for me". In all of our experience in teaching this program we have not yet (knock on wood) found anyone that was not able to identify and free-up a portion of their take home income.

This newfound savings can go a long way in making your financial picture much brighter. It can help you extinguish debt in a fraction of the time, put money away for a better retirement, and get you out of the month to month budget crunch that so many of us deal with all of our lives.

And remember this: If you save only $1 per day and invest it at 10% interest - in 56 years it will grow to $1 million. Every dollar counts. Make sure you get the most value out of every dollar you earn, by focusing on your financial goals instead of the wasted "wants" of life that put most of us in financial bondage.

By Michael G. Peterson

Photo Checks - A Great Alternative in Checking

2008-06-11T19:18:00.001-07:00

It's the little things in life that make it interesting. Everyday life can be so boring at times. To make the ordinary extraordinary takes time to explore and to discover. Fortunately, there are some wonderful places online to personalize those ordinary items and make them the pride of you day.

We all have checking accounts, many more than one. Most of us buy checks through three different means: the local bank, through the mail, and on the internet. Internet shopping is increasing, due in part to more confidence, and just more people using the web in general.

There is a new alternative in check supplies that has begun a new trend. Photo checks are increasingly popular among many markets. It's a way to personalize checking without having to pick someone else's design. They are only pennies more expensive than the usual choices, and they come out just perfect.

Here's what happens. Go to your favorite checks supply website and look for the photo checks option. It should be on the home page. You'll go through the process of ordering the quantities, and all that same old stuff. Then, you'll get to upload your jpeg photo that you took with your digital camera or retrieved from a scanner.

In a week or two, the new checks will arrive the same as they always have. But this time, your personal photograph will adorn them. What photos will you choose?

Family. Keep them close to your heart and get the chance to share them with the rest of the world.

Personal photo. Use the service as a security measure. Pretty much any jpeg design will work, and they'll have some ideas for you.

Man's best friend. Why have someone else's dog on your checks?

A picturesque scene. A photo from your vacation or honeymoon spot.

A digital design. As long as it is in JPEG form, you can create your own graphic design. Spread your artwork around.

These are obviously only a few of the ideas that might enter into your head with the option of photo checks. Use one photo now and select another for the next order. To get the most out of your checking account, get the best in personal checks.

By Robb Ksiazek

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Budget Planning

2008-06-06T00:46:00.001-07:00

Does it feel like you have to be Sherlock Holmes to solve the mystery behind balancing your personal budget? Are you living a mysterious thriller where your realization of "financial independence and security" is a vicious repeating cycle of debt? Don't be afraid?...Somehow you've ended up lost in the "plastic zone". ' The "plastic zone" is a scary place. But you're not alone. There are millions of people today living the same mysterious life in the plastic zone. Remember green money? You know, that green paper with presidents proudly displayed on them. They have virtually disappeared from the "plastic zone." Is real Money a foreign object to you? Is the balance of your checking account mysteriously stuck at Zero? It's time to solve the mystery.
You don't have to be a financial wizard to solve this mystery. And you certainly don't have to be Sherlock Holmes. You see it really is an elementary concept. If you ask any elementary school student they'll tell you that you can't take 10 from 5. There can be no negative integers in this equation. Simply put, you can't spend more than you have! You have to fit your "living" within your "means."
For most of us living in the plastic zone, this means making some serious changes in our spending habits. It seems an impossible feat to reduce debt while still building a foundation for your financial security and independence. It Can Be Done! And it is "elementary my dear Watson!"
KNOW WHERE YOUR MONEY GOES!
~The first step is to realize where your money goes. How are you spending it? This requires a little recording keeping but is not difficult. Simply write down every purchase you make, that is not a monthly bill, for at least a week. This includes every check, debit, credit card, and cash transaction made (if married, your spouse must do this also). When finished sort these into appropriate categories to plug into your budget later. For example; dining out, lunch at work, groceries, coffee, gasoline, snacks, well you get the idea.
~Second lets tackle that debt. The monkey on your back will always insist on being fed until you take control of your money and say NO MORE! Make a commitment to stop using the credit. You must make a decision to invest in yourself from now on. Not the credit card companies. Take control by knowing what you owe , what you're paying, and how much it is costing you. Make a list. Include Creditors Name, Amount Owed, Interest Rate, Current Minimum Monthly Payment.
Add up all of your current minimum monthly payments. This is your monthly debt reduction payment for the life of the debt. You will pay this consistent amount each month until the debt is paid in full. Roll down freed up monies from one creditor to the next as accounts are paid. For example: your list of payments include a visa you must currently pay $80 per month. You will make that $80 payment regardless of the minimum due (unless for some reason the payment goes up) until the debt is paid. When it is paid you will take that $80 and apply to another creditors monthly payment. This is the secret to paying them off before you die! And, still have time to enjoy a debt free lifestyle.
~Next, you have to write down regular monthly expenses. Things like the mortgage, cable, phone, electric, car payment,. Any expense that you pay every month. Insurance payments can be included if you pay monthly payments instead of a lump sum. Some of these expenses may not be the same each month ( like the electric bill). You should figure an average monthly amount for these. If your provider offers a budget plan where your payment can be a consistent amount each month, this makes budgeting these bills much easier. So do it!
~Now figure in the variable expenses. These are things like car maintenance, home maintenance, property taxes, income taxes, insurance's that are not paid monthly, pet care (vet bills, and medicines), your family's medical expenses (physician co-pays, deductibles, prescriptions (or prescription co-pays). Go through your financial records and write down every expense you can find that did not occur on a regular monthly basis. When you're done, add the total amounts for the year, divide by twelve, and this will give you an estimate of what you should be setting aside each month to budget these expenses. This is a variable expense monthly allowance to be included in your budget as a monthly expense. You set aside this amount each month (maybe in a savings or second checking account).
This is one of the most important steps in the budgeting process. The one step that most of us forget to do. The biggest budget busters are these "unexpected expenses". They're not really unexpected. Most of us just have a tendency to treat them as if they are unexpected. You don't plan for them. Consequently you will not be financially prepared when they need to be taken care of. You know that the car and home require some level of maintenance, but do you actually have a plan to pay for that expense? Or, when the hot water heater goes up, will you be forced to resort to the help of the credit card companies. This is what they hope you will do. Of course the property taxes have to be paid. Will you have the payment when it is due?
To reduce debt and maintain a successful budget you have to plan for these "variables". If not, you will inevitably use the credit cards to bail out and you'll be defeating yourself. The variable expense allowance in your monthly budget will allow you save for these expenses and will be your defense against creating more debt. This is an essential step in building financial security, investing in yourself, and remaining debt free.
~ Set a reasonable amount for your monthly savings allowance. This will be an emergency fund that can bail you out in case of tragic circumstances such as a serious illness or unemployment. Start with 10-15 % of your income and cut back to as little as 5% if you need to balance the budget. But, do save something! Anything is better than nothing. If you have to start small, as your finances improve, you should increase your savings allowance to reach at least 10% of your income.
Of course, once you have all of these figures in place you may find that you don't have enough money to cover all the expenses. You not alone. I was amazed at how much more I was spending than I was earning. It finally made sense to me why I couldn't get ahead. Why my debt kept increasing no matter how hard I tried to budget. This is when you have to start eliminating unnecessary spending, trimming down expenses by using some money saving strategies, or possibly considering an extra income.
It isn't always an easy process. It depends on how much of your spending is "unnecessary", how much you're paying out for debt, and how much you want to be free from debt and financially independent.
One things certain, if you take control of your money, and are committed to living debt free, you will find success. If you just keep doing what you're doing, things will not change, but will inevitably get worse. You will continue to invest in credit card companies, spending money that you don't actually have, and don't have a plan to pay back.
So start with a good spending plan that cuts out unnecessary spending, reduces monthly bills and expenses to the bare minimum, and eliminates credit card use. Save money in every area of your budget. Remember, $10 a month doesn't sound like a lot. But, a savings of $10 per month is $120 per year that you can apply somewhere else in the budget.
Every dollar you free up helps bring the budget into balance. Helps you live within your means. Don't spend more than you have. It doesn't get any more elementary than that!
Good Luck and Success! Live Debt Free to Be Free. You Deserve It!