It's Your Money Too

Important Action Items for Your Employee Benefit Plan

2009-02-19T06:17:00.001-08:00

by Leslie Flinn

The current financial crisis has caused some older workers to postpone retirement due to a drop in the value of their retirement accounts. It has also led to renewed compliance scrutiny. Additionally, a recent Supreme Court case (LaRue vs. DeWolff Boberg and Associates, February 21, 2008) ruled that companies can be held liable if employees lose money in their 401(k) due to negligence. Because of the explosion of 401(k) plans throughout the United States, the consequences of this legal action are potentially far-reaching.

Beware delays.

1. If implementing investment instructions is delegated to a third-party service provider, you need to understand the provider's system for implementing the participant's investment selections accurately and timely. With the increase in paperless transactions, this becomes extremely important. The service provider should notify the participant immediately of all changes in investment selections.
2. The Department of Labor is stepping up enforcement of timely remittance of employee contributions. The law requires employers to separate employee 401(k) contributions from their general assets as soon as practicable, but in no event more than 15 business days after the end of the month in which amounts are contributed or withheld from wages. For small plans, generally plans with less than 100 participants, employee withholding for retirement plans are due within 7 business days.
3. Employers might be tempted, either because of administrative convenience or cash flow needs, to delay contributions. But, in addition to the legal requirement, there is also the risk of harm to the participant's investments. If the contributions are delinquent, these contributions are not being invested timely. With the potential of significant market changes every day, this could cause investment gains or losses. If a loss occurs as a result of delay, it may give rise to lawsuits or, at a minimum, the need to make the participant whole.

Other Items to Consider.
1. For plans which participants have to Opt-In (participants choose to be in or not) update participants' selection annually including those participants which choose not to contribute.
2. For plans which participants have to Opt-Out (participants are automatically in and pay is withheld for 401(k) deferrals unless participant Opts-Out,) make sure you retain completed Opt-Out forms to retain evidence of participants' choice.
3. For Opt-In plans, consider an Opt-Out plan. The government is encouraging plans to become Opt-Out plans by reducing some administrative tests.
4. Given current market conditions consider having a financial planner give a seminar to update participants on their portfolios.
5. Not-for-Profit organizations with 403(b) plans will be subject to filing Form 5500 and are required to have an audit if their plan has 100 or more participants effective for 2009.
6. Check for unused forfeitures and discuss with your tax professional how these can be used such as offsetting matching contribution, profit sharing contribution, pay for administrative fees, etc.
7. Avoid having to make time consuming corrections due to errors in accumulating participant criteria for Benefit Plans.
8. Avoid penalties on plans which are subject to corrective distributions based on excess contributions. Plans need to complete their HC testing and compute and pay the corrective distributions within 2 months of the plan's year end to avoid a 10% penalty.
9. For terminated employees that have less than $5,000 in your plan, consider distributing their funds to them to lower the plan's administrative costs.
10. Prepare census and compliance testing timely.
11. Update files with signed designation of beneficiary annually.
12. For plans with multiple ending dates, review for proper inclusion of new participants.
13. Review computations with matching contributions for correctness.
14. Prepare timely all required Forms 1099R/1096 and Form 945 and remittance of taxes withheld.

Determine Your Audit Need
An audit can provide the documentation that you need to prove compliance with applicable rules and regulations.

1. Companies with 100 or more eligible participants at the beginning of a plan year must have an audit to form an opinion that the financial statements of the plan are presented fairly (ERISA Section 103.) The audit is included with Form 5500 filings. Note the word "eligible" is the key, not participants in the Plan.

Plans with fewer than 100 eligible participants at the beginning of the plan year are considered a small plan for filing purposes. Audited financial statements are generally not required for a small plan filing if specific requirements are met under the small pension plan security regulation.

Types of plans that may require an audit include:
Multi-employer
401(k)
Profit sharing
Health and welfare/VEBA

2. Make sure that your auditor has experience with 401(k) plans. This is a specialized field. Knowledge of the Department of Labor's requirements is a must. Prohibited transactions, supplemental schedules, and certain footnote disclosures are unique to 401(k) plans. The more an auditor understands the 401(k) field, the more effective that audit will be.

3. Provide the auditor copies of all agreements with third-party service providers. If the plan has reviewed the internal control structure of a service provider, that review should also be provided. In any event, the auditor will need to satisfy himself of the internal control structure of the 401(k) plan and the provider's portions of the plan. This work should be performed before the audit.

4. Finally, before the audit, you should either provide or make sure your auditor has obtained all information and documentation requested. Contracts, investment statements, and participants' files are some of the more common requests. If your auditor does not prepare your 5500 form, they must review it.

Quality audits are very important to the 401(k) plan and your participants' best interests. Take steps now to ensure that you are in compliance!

About the Author

Contact: Leslie Flinn, Director of Marketing, Warady & Davis LLP, Certified Public Accountants & Consultants, one of the top 25

CPA & consulting firms in the Chicago area specializing in employee benefit plan audits. Contact: Leslie Flinn, 847-267-9600, lflinn@waradydavis.com,

http://www.waradydavis.com

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Creating and Starting an Online Business

2009-02-18T07:43:00.000-08:00

by rdokoye

Reading this article right now will give you tips on how to create and begin an online business, we will be looking at various ways of starting an online business you can use.

There is loads of varying online businesses that you can get into and a lot of them are usually in three broad categories which are: selling products or services to prospects or customers, selling on eBay, or maybe business-to-business selling. When you are searching for ways to start an internet business, you will need to find out what your specialty is, and then in create a business around one of the three big categories.

If you conclude on what you want to sell to your customers, you will have to find a way to sell your products or services in a different manner than many of the other retail websites out there. If you decide that you want to sell on eBay, you will have to look for a wholesale distributor of things that you may purchase your things at a reduced rate. If you are having you business in a business-to-business forum, this will not be a hard transition for you.

All of the three categories may be broken up but you will have to make up your mind upon which of the three types of business you want to concentrate on. Lots of people will consider starting an internet business but don't know where to start or focus their efforts. By concentrating your energy just on one of the three categories, you will get an understanding of where to start. If you decide to being with eBay first, search for a wholesale distributor that you will be able to purchase your products with good enough discounts.

This is very beneficial for loads of people starting because you will not have to purchase the products so you can just think about selling them on the internet to people that want the product. The people that want what you are offering are going to be those that are bidding so that you will know exactly what it is that they are after.

If your decision is to sell things or services to buying customers, attempt to look for a niche that doesn't have such a high demand in terms of competition you have to face. This is one of the main things to consider when starting an internet retail business because it will benefit you immensely to find a niche that doesn't have a large amount of competition that you can dominate.

Last but not least, if you make the decision that you favour doing business to business selling, you should research your options and find out how you can give a benefit to that specific market that you have decided to target.

Lots of people work on the internet as freelance writers and if you are able to do that and possibly differentiate your business from the competition if you choose a specific niche to write for. Business-to-business selling is likened to the retail selling strategy in that you want to concentrate on a niche with the goal of dominating that niche.

I Hope that this article has helped to clear your mind about how to create and start an internet business. I hope you now have an idea of one of the three areas you might want to concentrate on.

About the Author

Uchenna Ani-Okoye is an internet marketing advisor and co founder of Top Affiliate Programs

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Changing your Mindset to Get Your Children Through the Recession

2009-02-17T04:45:00.000-08:00

by jonkelly

These are very difficult times and there are plenty of families who are starting to feel the financial pinch. Many families have noticed that the promised fuel cuts have not reduced their fuel bills to the level prior to the hikes which we have experienced in the last twelve months; the mortgage rates are not reflecting the reduced interest rates and to top it all the weekly shop, despite adverts promising savings seems to be getting more expensive.

So how do you cut your costs further without the kids particularly noticing? This is not about the individual actions; it is about changing your mindset. Children love to have new experiences and they love to do things with their friends, or even better to be the expert and to introduce their friends to a new activities will certainly give them the edge. We are not suggesting that you suddenly get your kids weaving and making their own clothes, simple things, get the kids to make the cakes which they can eat when their friends come round to play. Then you can progress to making bread. Bread is great for kids; they love the idea of watching it grow and then sticking their fingers in or punching it back so that it can grow again. The important thing is to make sure that your children share their new skills with their friends. This is make them want to progress.

Movies are great, but regular trips to the cinema can get costly, apart from the tickets there is getting their, parking, taking their friends, buying the drinks and popcorn. It all adds up and before you know it, the kids are expecting it and it has become a habit hard to break. So don't take this away suddenly and drastically so that the children feel deprived, wait until one is not quite well, or it is horrid weather, the film they want is booked. You need to find a reason acceptable to them not to go and then introduce a new activity.

If you have kids who like to be messy, and a little bit of outside space it is a great idea to get them gardening. The first time I managed to get my eldest son to eat peas was after he had spend the previous hour shelling them. If you haven't got any outside space, something we suffer from, then there are great days out at farms where you can pick your own fruit and vegetables. These are wonderful fun activity and you get to eat loads of strawberries after, what more of a reward can a child ask for?

If the recession is going to be half as bad a some of the experts are predicting then we need to start thinking about bringing up a generation who are less materialistic and have a greater understanding of what is important. We need to have healthy children who know how to use their imagination and how to apply their knowledge. We do not know what sort of a work environment they will enter, but you can guarantee that it will be drastically different from the current one. Parenting has always been hard and now it is even more important that we do our best to prepare our kids, you cannot completely shield them from a global economic meltdown.

About the Author

Jon Kelly is a published author who writes articles and reviews on money and finance. If you would like to find out more on how to cope in these difficult times about foreclosure and learn more about new developments.please visit: http://www.helpinforeclosures.com

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Could Buddhism Teach You Something About Trading And Investing?

2009-02-16T05:43:00.000-08:00

by mercedes

At first glance there seem to be few parallels between Buddhism and your trading and investing strategies, but is that really so? If you look beneath the surface a very different picture starts to evolve.

Traditionally we go through life viewing events, like market action as something that happens outside of ourselves and as something on which we have little or no influence.

We have neat little boxes for all those events with their clear beginnings and endings. This thinking, which is part of the old paradigm is essentially incorrect and has lead to a flawed view of reality. When your view of reality is skewed everything in your life will be affected, including your trading and investment strategies.

We know that things have a habit to work until they stop working. This principle, which is an integral facet of evolution has plaid out with frightening ferocity in recent months in the financial markets. A roller coaster of transition and change has taken over while the entire financial system is cleansing itself of old outdated habits and is trying to establish a new consensus. The old forces from the old paradigm vie with new forces of a new paradigm which is based on the latest findings in science, which are confirming what the old wisdom traditions have taught for thousands of years.

We have evidence now that indeed nothing is separate and when we traditionally talk about crowd psychology reflected in the markets we are merely seeing the Buddhist concept of oneness playing out in front of our very eyes in the markets.

The basic building block of everything in the universe is energy. Energy in order needs constant motion. We see this constant motion expressed in duality, the constant market moves of up and down or sideways. This picture unfolds all the time, even when we catch a trend there is movement within the movement, since, as any technical analyst will tell you nothing ever goes up or down in a straight line.

Just as your life has fluctuations, even if you are not always consciously aware of them, you are always changing to a lesser or larger degree. Markets reflect the collective consciousness of the masses.

I don't care if you believe that the fed manipulates market action, sooner or later the market will exert its right to return to its natural cycle, which is a reflection of the cycle of the mood of the general public. Presently a mood of deep dissatisfaction and resentment with the system that has caused a lot of hardship for many.

It is a huge misconception to think that blame is going to get you anywhere when dealing with market action. In fact, as you will always get what you focus on, because your mind is a very obliging tool and will get you what you are looking for, every time, you might want to consider the effect your pervasive negativity has on the collective consciousness and last but not least market action.

There simply is no getting away from the fact that you make reality and you create the market action through your thoughts and feelings. Every time you panic, feel desperate and you believe that the financial system may collapse you are creating a little more of that negative momentum which fuels the markets and you will find proof in your portfolio as it seems to be less and less every time you look.

There are many traders who find it difficult to go short. I will not go into the many reasons for this in today's article, suffice it to say, that conflicts with their belief system does not permit many traders to take advantage of the flexibility of the trading system. Markets move up and down.
Going short is no better then going long and both are just like the tow sides of a coin. Head or tail are of no value, unless you are betting on the wrong side and resent that fact.

If you are a savvy trade or investor you will have learned to take advantage of the many instruments available and position yourself in line with market action, but free from judgement about whether the market action is agreeable to you or not. Staying out of judgement is an art which Buddhism teaches us. It is a very useful habit to develop because it saves you wasting a lot of precious time as well as precious energy and will improve your trading and investing many times.

If more of us were doing this the present financial crisis may not be as dire as it appears at present. People with energy normally feel more positive and see opportunity. Once you can see how your many misguided thoughts and feelings make up your actions you are freeing yourself from pointless emotion and trance behaviour which is typical of crowds.

Believe me, the above is not new age mumbo jumbo but my view based on many years of experience and learning a lot about myself in years of trading and observing market action. If you want to be in control of your investment and trading strategies do yourself a favour and learn how you can expand your awareness. The man on top of the mountain sees more of the world and can appreciate more of it.

About the Author

Mercedes Oestermann van Essen is a human development coach and author.Her brand new book

THE BUDDHIST TRADER is available for immediate download on her site.

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Start Up Business Financing - Are You In Search Of Finance For Your Business?

2009-02-15T06:34:00.000-08:00

The initiative of starting up a business is something very good. But the simple notion of starting up a business is sometimes plagued with certain thoughts of indecision or thoughts of canceling the whole idea of starting up a business. What is known is that a lot of people are afraid to get into business because they are troubled of loosing. This is because they might have previously experienced losses or might have seen others fail in business. It should be kept in mind that most of the failures often experienced in business are failures related to finances.

The fear of loosing should be something inherent in every business owner and particularly to those just getting into business. This fear is also experienced by those already established in business. But in most cases, they are very worried about sources of finance for their businesses.

One of the main ideas at the back of this article is to identify the various sources of financing a business as well as identify the various tools to take the business through to a stage of profit maximization. How can you seek for the finance necessary to run your business?

Loans

Loans are one of the commonest forms of securing finance for the business. Loans are commonly obtained through commercial banks and these will normally be made available to those who can show some convincing form of credit worthiness. However, the conditions over which loans are given will vary from one lending institution to the other.

One of the best ways to approach these lending institutions is to come up with a business plan which can be appreciated by the lending institution and also establish that your proposal has the least form of risk that can be thought of. Keep in mind that banks will prefer to put their money where they realize that risks are minimal or insurable than where risks cannot be insured. You must also make sure that you are a legal entity and that you have the necessary collateral to secure the loan.

Angel Financing

This is a type of scheme in which you will normally come up with a business program and present it to an individual or group of individuals who are willing and able to provide the necessary capital for the running of the business. It is common to find such groups working in a network today. You will also have to know about the various networks and how they function ahead of seeking financing from it.

Angel financing is also sought for and will be provided to businesses with very high risks. This will also warrant these financiers to demand for high returns on their investments. In most cases, what they stand to gain will be twenty or thirty times above the value of what they put in. This is a very expensive form of financing but it is probable that it can be made available to young business owners with businesses that have a high probability to expand. If you cannot get the required financing from a lending institution, you may opt for this form of financing.

Financing From Venture Capitalists

Venture capitalists are investors who gather money with the aim of putting it in businesses that are still at their inceptions or businesses that are experiencing insurmountable financial hurdles. Such business may lack the capital or personnel to direct the business and they may also be involved in businesses that have high prospects of making huge profits. However, those who provide finance under this type of scheme will want to have a considerable measure of influence over the affairs of the business. Business owners should therefore be wise enough on the amount of influence which they will accord to these investors.

There are other sources from which finance can be provided to the business. The business may decide to sell some of it shares to the public. It can also opt to sell what it acquired in the form of assets.

About the Author

Discover more about business real estate financing as well as the insiders secrets towards successful business start up funding when you learn from the experts at http://www.365capital.com, the premier resources on small business startup loans.

How to Be Sure You Always Have Access To Money

2009-02-14T06:52:00.000-08:00

I'm going to tell you how you can always have access to some emergency cash, whenever you need it. Don't be afraid of payday loans. Here's how they can really help you.

Sometimes life throws us a curve and we find ourselves in a tight spot where we need just a little more money to get us through until we get paid. If you've ever been caught short like this, you know how frustrating and embarrassing this can be. Well, you don't have to worry about that anymore if you'll just follow this method of using cash advances to build your credibility.

First of all, you're foolish if you believe that just by walking up to a money loaning business, they'll give you from $100 to $1000 just on your word alone. That's dreaming, my friend. They're in the business of loaning money and getting it back and if they don't know you, chances are slim that they'll lend you any money without some form of collateral. The one exception is if they've done business with you before and you paid them back on time. You've "established" yourself with them and they're more likely to loan you a little more the next time you apply for it. So, here's how you're going to get that money every time you ask. Just follow these steps and you'll have a guaranteed loan whenever you need it. You may never need it but a little insurance here goes a long way when a bad financial situation or crisis occurs.

First, you need to set this up at a time when you actually do NOT need any money. Don't wait until you become desperate and then expect some cash advance loaner to trust you in the spur of the moment. They won't and it will be difficult for you to get a loan.

If you'll apply for a small payday loan at a time when you have money you'll be setting yourself up for a quick loan when you do need it. Just fill out an application for, say, $200 and go ahead and get the loan. It may take a few days or you may have to put up some type of collateral. That's ok, just do it. Now, don't even think for one second of keeping that money. No way!

You wait three days, add your interest and pay the loan off. I repeat...PAY THE LOAN OFF!

Now, a week later, do the same thing for the same amount. Three days later, pay it off again.

Now, my friend, you've established yourself with a loan company. You've got some credence with them.

Next, wait a week and ask for a $400 loan. Again, you may have to show proof that you'll be able to pay the loan off. Give them that collateral if it's needed. Chances are, they may not even require collateral because you have proven that you can pay off your loans.

You have established yourself. Wait three or four days and pay back the loan. Every red cent of it.

Now, you've really established your credibility with the loan company. Don't blow it, whatever you do.

The next day, apply for another $200 loan from a different payday loan company and start the process over.

You don't even have to apply to just one payday loan company at a time. You can apply to several at the same time. Just make sure that you don't spend one single dime of the loan money. You pay it all back in three to five days.

Do this with five payday loan companies and you will have established enough credit with them that when desperate times come around, you have enough credibility to get five five-hundred dollar loans. That's $2500 that you will have access to when and if you need it (and you will, sooner or later).

This just gives you a means to get a fast and easy payday loan (which you WILL pay back, right?) when you need it. Rather than waiting until fortune spits on you and having to go through the frustration of finding and applying for all those loans and then having to wait to know if you're going to get the loan or not, you'll already know that you've got access to $2500 for emergencies.

Just don't abuse the trust that you've gained. Don't blow it. If you do, you'll find it very difficult to get emergency money next time you need it. Pay back the loan on time and keep your credibility maxed out.

If you don't have an emergency for say, three or four months and you don't need any quick payday loans, just start the process over again. It's not difficult and it doesn't take that long especially if you've had a job for a good while.

Use this method and be assured that there are always funds available when you get in a bind.

About the Author

For more interesting and informative information by the author, Gary Vaughn, please click here

Dealing With Redundancy and The Worldwide Economic Downturn

2009-02-02T08:25:00.000-08:00

Do you feel depressed when you switch on the news? Are you one of those unfortunate people who have lost their job? Do you feel insecure about the future? The financial outlook may not look good, but is there a way of dealing with redundancy and global recession without falling into a feeling of gloom and despondency?

The truth is that there is always more than one way of looking at a situation. In his classic self-help book, Think and Grow Rich, Napoleon Hill said that the 1930's "depression" was a blessing in disguise. "It reduced the whole world to a new starting point that gives everyone a new opportunity."

The reason Hill placed "depression" in inverted commas was because he was not prepared to buy into other people's definitions of the word. Instead, he looked for the hidden benefit and announced that "every failure brings with it the seed of an equivalent advantage."

In making these statements Hill was doing several things. Firstly, he was thinking independently. Secondly, he was "responding" to the situation instead of "reacting" to it, and thirdly, he was "choosing" to respond in a positive way to what most people would see as a reason for negative response.

Napoleon Hill understood that we choose how we respond to any given situation. Unfortunately, most people do not understand this, and believe that there is only one way to see a situation such as a recession or redundancy, and that is a negative one.

In a more recent book (Goal Mapping), Brian Mayne discusses the same idea. He says that the word "responsibility" does not have much to do with being at fault, but with our ability to respond; in other words, our "response-ability". Being responsible is about being able to choose how we respond to situations in our lives so that we are not victims of circumstance.

Napoleon Hill saw the 1930s depression as an opportunity for the world to make a new start.

If we apply this philosophy to our own lives, and to the current worldwide economic downturn, we can begin to turn a negative into a positive.

Globally, I believe that the current financial crisis will see a change in our ways of thinking; not only about the way individuals, banks and corporate companies handle finances, but also about the way we do business. This will be a refreshing and exciting new beginning if we are prepared to change our outmoded mindsets.

This may seem like a much harder pill to swallow if you are dealing with redundancy or are personally affected by financial hardship. The reality of losing your job, and possibly your home, or being in debt, is not one that anyone wishes to experience. However, out of the worse situations, people have risen to succeed because they choose to believe in opportunity and learning from the current situation.

If you are losing your job, perhaps now is the time to start doing something that you have always wanted to do. Perhaps it is the opportunity to get out of the rat race and start your own business (and yes, there are businesses that thrive in a recession). It could be the opportunity you've needed for a long time to stop and take stock of your life and review your values and what is important to you.

You do not have to be a victim. Getting angry or bitter with your boss, or the bank, or the Government, only keeps you stuck and offers no progress. Taking responsibility means that you just respond to what is, and act accordingly. Do not follow what everyone else is saying or thinking. Think for yourself and choose your future.

After all, there are always those who succeed during a recession, and there are always those who fail during a boom. The main thing to remember is that it is always up to you and you can succeed and have what you want, no matter what the rest of the world is doing or thinking. Whether you are dealing with redundancy or facing the worldwide economic downturn, you are free to respond in any way that you choose.

About the Author

Ros is a career life coach and writer, and also runs her own online business.

Ros's coaching site is at Career and Home Business Coaching

Find opportunities at her website at Financial Freedom Online

Some Tips For Loans As Borrowing Gets Harder

2009-01-31T05:06:00.000-08:00

by Michael challiner

It is no surprise to any of us that interest rates have risen and are still rising and lenders are able to be choosy so borrowing on a whim is no longer possible.

The credit crunch has made borrowing prohibitive as the bank loan rates have soared on personal loans and mortgages. The popular lenders have made increases in the last couple of weeks including Nat West with a 2.5 per cent rise.

Michelle Slade from the financial comparison website Moneyfacts says, "It is not only mortgage rates that continue to increase, so have personal loan rates and monthly repayments."

She says Tesco Personal Finance has gone up another 0.6 per cent, Lombard Direct has gone up 1 per cent, the AA is up 0.1 per cent and Barclaycard rates have increased by 0.5 per cent. Barclaycard have also put a stop on their one-time best-buy product which they used to offer through Masterloan.

At least half of the lenders who offer personal loans have altered their charges since the beginning of the year.

An increase of 11 per cent on smaller loans by Black Horse has seen an addition of 52 pounds and 68 pence in interest, per year, on a 1,000 pound, one-year loan.

To borrow 25,000 pounds from the Nat West over 5 years with a rate increase of 1.5 per cent on these bigger amounts, will see an extra 1,015 pounds and 20 pence on the total cost of the loan.

Some lenders have actually reduced rates. Brittania BS and Moneyback Bank lowered rates at the beginning of 2008 and a loan for 5,000 pounds with the Clydesdale Bank or Yorkshire Bank can cost up to 7 per cent less than before.

The experts are all echoing that in such glum economic circumstances and family budgets are really being squeezed borrowing should be thought about. Steve Wilcox at Citizens Advice warns, "The fact that a lender has approved your loan does not mean you can afford the repayments," and he goes on to say,
"Loans are not for paying off current borrowings or to buy everyday essentials such as food or energy. While there is a credit crunch on, lenders still need to make some money but borrowers must be extra-careful that they can afford repayments."

Do not forget, if you can justify borrowing, that the "typical rate" may not be the rate that you will be offered. By law a "typical rate" must be offered to a minimum of 66 per cent of approved borrowers, which leaves a remaining third that may well be charged a higher rate.

As we know, lenders are picky so you may not qualify for a loan if your credit history is nothing other than perfect; the slightest blip may cause your application to be turned down flat.

Also, buying Payment Protection Insurance from your lender is not a good move and can cost you thousands. If you want this cover go for independent cover from insurers like britishinsure or paymentcare.

Another mistake is to assume that your own bank will offer you the best the deal get quotes from other lenders.

You must not forget that every application you make for a loan will leave a footprint on your credit file which in turn might push up the rate that you are offered or you could result in being refused by lenders contacted subsequently.

About the Author

Cheap-Loans-Sale offers great deals on Secured Loans, Mortgages and other financial products. Visit our site for more info. Our sister site Brokers Online offers cutting edge articles and information about Home Insurance and other great financial products.

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10 Reasons To Put Your Credit On A Crash Diet

2009-01-29T05:44:00.000-08:00

by Dawn Handschuh

Shedding unwanted weight ranks among the most popular New Year's resolutions. You can blame the holiday parties for the 10 pounds (or more) that somehow settled in your mid-section, but before you chain yourself to the treadmill, you may want to consider putting your credit on a crash diet, too.
The start of a new year is a wonderful time to assess your financial well-being and, if necessary, make some radical changes to shore up your finances. Here are 10 red flags that may indicate your finances are in need of a serious makeover.

1. You have little or no savings. You're living on the edge if you don't have an emergency fund you can tap in the event of an unexpected expense. Having no savings means you're just one bill away from a full-blown financial crisis. Financial planners recommend stashing at least three months' worth of living expenses in a savings or money market account you can easily access, but if you're the family's sole breadwinner or your job is shaky, beef up savings to include six months or more of living expenses.

2. You often have to hit up friends or family for a short-term loan to get by. Financial independence means standing on your own two feet. If living paycheck-to-paycheck is a way of life for you and you frequently fall short of cash at the end of the month, a painstaking review of your finances is badly needed.

3. Money is a frequent source of tension or conflict with your spouse and often keeps you up at night. It's rare to find a couple that agrees on every spending decision. Learning how to talk about money disagreements is essential; you'll find it much easier to achieve your financial goals if you and your spouse are on the same page.

4. You lie about or hide things you've purchased from your spouse to avoid an argument. Deception is a slippery slope, and never a good idea, especially in a marriage.

5. You pay only the minimum required on your credit card debt. Paying only the minimum ensures many years of indebtedness. If, for example, you have $9,500 in credit card debt and a rate of 13.74%, it would take you 35 years to pay it off, plus an extra $12,000 in interest, if you made only minimum payments.

6. You use your credit card to pay the rent or mortgage, groceries or utility bills because you lack the cash. Paying for essentials with your card may offer short-term relief, but it really just raises the stakes by adding to your credit card balance, increasing your minimum balance and hiking the overall interest you'll be paying.

7. You lack a long-term financial plan for the future because the present overwhelms you. If you don't really know where all the money goes, you need a budget. Just as you can't eliminate clutter without finding a place for everything, so, too, you'll find it hard to eliminate debt without a budget that allocates your income to cover expenses. A budget is a roadmap that guides your spending decisions.

8. You can't qualify for a loan without a family member or friend co-signing for you. It's understandable if you can't qualify for a loan yourself simply because of your age and lack of opportunity to build a credit history. Once you're out of your 20s, though, you should be able to stand on your own two feet; if you're still being turned down by lenders, it's likely a sign that you need to pay attention to your bill-paying habits, use of credit cards and other things that affect your credit score.

9. You use shopping as a way to deal with voids in your life, escape your problems or boost your spirits. Retail stores are designed to seduce shoppers, and if you put yourself in that environment, you're bound to succumb when you discover you "must have" something you didn't realize you "needed" just moments earlier. Find other ways to make yourself feel good, get some exercise, read a good book or talk with a friend.

10. You make poor choices, or no choices at all. Skipping routine preventative medical care, or worse, doing without health insurance entirely, is a shortsighted decision that can cost you big in the long run. Daydreaming about solving your financial problems some day by winning the lottery is just a fantasy that can lull you into a fatalistic, complacent attitude.

Remember, hard work and careful planning will get you where you want to go.

About the Author

Dawn Handschuh has earned a living putting pen to paper for 25 years, including 10 years in financial services, where she wrote widely on retirement planning, personal finance and specific investment products such as annuities, mutual funds and 401(k) plans. Dawn writes on CreditFYI and on CreditFYI's Credit Blog.

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Various Types of Refinancing Rates

2009-01-28T03:25:00.000-08:00

by Marlon Dirk

Whether you're looking to refinance your home mortgage, refinance your car, or even possibly a personal line of credit, it's important that you pay attention to your refinancing rate of interest. These types of interest on refinance loans can vary considerably from those that stay steady throughout the length of the loan, to those that vary with the economy. Before signing on the contracts dotted line, make sure you really understand how your refinancing rates and interest rates are set up within your loan contract.

Various interest rates can seriously affect the amount of your monthly payment. When you have a varied interest rate on your refinance loan, this means that your interest rate can fluctuate with the economy. As rates increase with a lowering economy, there's a good chance your interest rate on your refinance package are going to increase. Unfortunately, this means your monthly payment could increase as well, and with the economy already dropping, you could be in trouble. It may seem like a good deal at the beginning of your refinancing package to go with a variable interest rate when the economy is good, but remember, the economy changes over time, and this means your monthly payments could suddenly balloon into something you can't afford.

With a fixed interest rate on your refinancing package, you may start out paying a little higher rate than various loan package interest rates, but your rate will stay the same no matter what the economy does. You can always refinance your refinanced loan again, of course, you'll pay fees, but if the interest rate drops enough through a good economy, it might be a good thing. The best part about a fixed rate of interest on your refinance package is the fact that your monthly payment will stay the same clear through the length of the loan.

It is important that you understand how refinancing your home, car, or other types of loans can be affected by the rate of interest. You'll need to make sure you understand the difference between a various rate package, and a fixed rate package. There are benefits to both packages and it's all according to the economy at the time, and also how high or how low your interest rate can change with the economy.

Some refinancing rates on various rate loans have a cap put on them as to how high the interest can go, as well as how low. If you're looking at a various rate refinancing package, make sure you get one that has a cap on the highest amount of interest you're going to pay.

Different types of refinancing rates are going to apply to different types of refinancing loans. It's important that you thoroughly understand your interest rate on any refinancing package you're considering. If you don't understand the differences, be sure to search out professional help concerning your refinancing rates and your refinancing package.

The site features different advises about Refinancing it also gives information about car refinancing, mortgage financing, home mortgage refinancing, and bad credit refinancing. Just visit http://www.refinancingratestips.com/

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Three Keys to Your Budgeting Success

2009-01-27T05:37:00.000-08:00

by Sergey Rusak

For many people, the word "budget" has a little bit of negative connotation. But, without a budget many families struggle each week, literally living from check to check. A budget is the only way to ensure that you stay one step ahead of your monthly bills.

Budgeting involves understanding how much you earn and spend over a particular period of time (week, month, year). When you create a budget, you are creating a plan for spending and saving.

What makes a budget a good one? A successful budget is one that is well planned. Here are a steps to help you create your own successful budget that you can live with:

1. Categorize Wisely: Many people use software packages or pre-formatted budget sheets to start and understand their budget without much long term success. Choose categories that fit your own personal situation and your habits, not a generic sheet or list. The key to categorizing is to choose enough categories to paint a realistic picture, but not too much detail that the budget becomes a burden.

2. "For a Rainy Day" Expenses: Be sure your budget includes unexpected spendings. For instance, car repairs, medical bills, household items. These expenses can sneak up on you and leave you tight for cash. In addition, your budget should allocate some money towards a savings plan every week and month. If you do not set aside money specifically for investment purposes, you never will.

3. Re-evaluate Your Spending & Set Realistic Goals: Budgeting is not simply tracking costs; it is about setting financial goals and finding ways to meet them every time. Instead of struggling with an unrealistic plan to save thousands of dollars, simply learn how to spend better and wiser. After all, spending is what we do most, and spending less is easier than saving more. Smart spending is better than cutting back and doing without, but remember that you still need to know where your money is going.

In the end, a budget will tell you whether or not you are living within your means. Before the unlimited use of credit cards, you could tell if you were living within your means because you had money left over after paying your bills! The use of credit cards has made this much less obvious. But, by creating and adhering to a realistic budget, you'll improve your cash flow, free up money that you didn't think you had, and more importantly, you'll have a plan. Sure, we all get caught off guard every now and again with a surprise automobile or home repair. But, if you don't set up guidelines for reaching your financial goals or a means to measure your progress, you may end up going so far in the wrong direction you may never get ahead.

DMB finance. To find out if debt settlement is right for you visit Debt settlement.

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8 Things You Should Know Before You Rent or Sell Your Home

2009-01-26T07:09:00.000-08:00

by rsootkoos

Recently, Sharon Gless, a 42-year old administrative specialist, from San Jose, CA, was laid off. She entered the job search mode over the next few months and decided to relocate to Atlanta, hoping to take advantage of a better job market in the South East, especially in her area of expertise, and also a more attractive housing market and generally a more affordable standard of living. She also felt that she didn't need to sacrifice too much on the great weather she has been accustomed to.

Now, that she decided to move, Sharon had one bid decision left to make. Should she sell her home in the San Jose suburbs or rent it out.

"I am not sure what is my best move expressed Sharon. I don't know what is involved with renting out my home and I am not sure what is the best financial move for me to make. If I sell my home I will make a 100% profit, but what if I don't like Atlanta and want to move back to California? I won't have a house and don't know if I will be priced out of the market then. I have heard horror stories on both sides, but am most concerned that if I move back I won't be able to afford renting a home or an apartment for that matter. Should I sell and take the profit and run? If Sharon sells now, she will lock in tremendous gains, but that same appreciation could price her out of the market if she returns in a year or two.

Sharon's situation is quite common. More than 5,000 US homesteaders move every day, according to the U.S. Census Bureau. Underscored by a weak labor market, many people have to move to find employment. According to a survey by a leading job posting site, half of U.S. job seekers were willing to reallocate for employment.

In most instances, moving requires selling one's home because the equity of the former home sale affords the purchase of the next home. However, for differing circumstances some homeowners choose to rent out their homes instead. In some instances, the intended move is only temporary and they know they will be returning to back home in the near future-perhaps while they pursue a second degree or take on a short term contract work. Sometimes the seller simply can't sell at an acceptable price so they opt to hold on to the house until the market picks up. A more likely scenario, however, is that the owner wants to hold on to the house in anticipation that its value will continue to escalate.

The situations are varied, however, there are a 8 Tips You Should Know Before Selling or Renting out your home.

1-The Tax Impact When Selling Your Property

As is well known, the IRS provides a generous tax break for homeowners that have lived in their home for at least two of the past five years. Married couples who file jointly can earn up to $500,000 in capital gains tax-free, while singles can enjoy $250,000 in tax-free gains.

Also, homeowners who plan to rent their home for a short duration (one or two years) will still be eligible for these tax breaks if they have lived in their home for at least two of the past five years. However, If they sell more than three years later, they lose the tax exemption. In other words, their gain would be taxable as a capital gain. Thelong-term capital gains are now taxed at a maximum rate of 15%.

The 3 year clock starts once you start renting.

Because of this tax rule, at the risk that renting plans would lose this attractive financial benefit, the general consensus would be to sell. Most financial planners and CPA wouls agree that if you have a large gain on your personal residence, you would be better off to sell rather than rent it out. It would be a great loss if you had to pay taxes on this capital gain for the small upside benefit of short term rental income. Its would be the equivalent of throwing money down the drain. However, there is another alternative to renting if the homeowner is willing to move back into the house. If he lives there for two more years again before he sells, he will re-qualify for the exemption.

2- The Tax Impact When Renting Your Property

Renting your home and becoming a landlord also has some handsome tax perks. Rental income is taxed as ordinary income and your taxes could be largely eliminated with the numerous deductions on expenses and depreciation. Please note the there is on major tax rule that may mitigate this benefit. If the house is eventually sold and you qualify for a capital-gains tax exemption discussed earlier, you'll be taxed on the amount you depreciate, which would make renting out your home considerably less attractive than selling.

With respect to expenses, you can deduct almost any out-of-pocket expenses related to owning and managing the home including property taxes, mortgage interest payments, advertising or broker fees, the costs of repairs, maintenance, other cleaning services, utilities, management fees, fire, earthquake and liability insurance and other expenses associated with keeping the property running and the collection of the rental payments.

There is also a deduction called depreciation that is included that is calculated by taking the value of the property and dividing that by 27.5 years (the recovery period) and deducting that as an expense deduction on your taxes. For instance, if your home is worth $500K at time of renting, your annual depreciation deduction would be $500K divided by 27.5, or $18,182 a year. In other words, you can get $18,182 in rent tax-free just on the depreciation tax benefit.

Any improvements made to the home, such as adding a second story or a new updated kitchen remodeling wont qualify for a deduction, but this cost can be recovered by the increase in depreciation deduction as the value of the home would increase. You can in most cases depreciate the cost of any carpeting, plumbing, appliances, and furniture over only five years. So if you bought a new $2,000 refrigerator for your rental, you can deduct $400 a year from your rental income for five years.

Renting

Pros

*Good investment to keep if it continues to appreciate
*Tax-break benefits that offset income tax on rent
*Rent income covers the mortgages, taxes and other property expenses

Cons

*Damage may occur to the property from the renters
*You may miss the tax benefit window and taxed on the whole profit if you sell
*Could have a number of financial/legal issues with the renters

Selling

Pros
*The tax-free capital gain benefits
*Lock in profits that can be used or reinvested in other investment vehicles
*Don't have the headaches with renting a property

Cons

*May not be able to afford a comparable home if you decide to move back
*If market is hot, you may lose out on more home appreciation
*It may not be the right time in the marketplace to sell a home

3-Can You Afford to Rent?

In reality, for most homeowners, renting out a home is not an option for them. The sale of their home is necessary in order to put down a downpayment for their next home. Many homeowners only have enough capital to purchase one home, let alone 2 homes. There is a capital reserve required when renting properties.

Tenants come and go and the homeowner has to pay the mortgage payments on the rental property regardless of whether or not he has paying tenants at the time. These are valid risks to consider when deciding to rent your property.

When renting a property, there is also the risk that a tenant could damage the property or cause other issues that would lead to an expensive eviction process. In most states, the legal process to carry out an eviction could cost up to $5,000 and the process could take 1 to 2 years to complete. During this time the tenant will most likely refuse to pay rent as well.

4-Will Your Home Appreciate in Value?

Many homeowners decide to rent as they anticipate the appreciation of homes in their area will continue to soar upward. Generally speaking, if the home prices in your area are expected to climb considerably over the next three years, it may be a good idea to rent it out. Speculation aside, you may want to consider historical real estate appreciation statistics which equate to roughly a 3 percent annual appreciation over the long run. Just because property values have increase in the last few years, its not certain that it will continue to do so for the next 3 years.

If you are looking at your home as an investment vehicle, it is generally a good idea to talk to a financial planner and include your home investment as a part of your overall investment portfolio strategy. Again generally speaking, its not a good idea to put all of your eggs in one basket and is a safer strategy to stay diversified with multiple investment vehicles. If you do not feel that you are diversified enough, you may want to consider selling your home.

5-Is The Market Good To Rent or the Sell?

Sometimes the market is better for sellers than for landlords. If you look at the last 10 years, the values of properties have appreciated considerably, whereas rents have increased only marginally notes Gordon Lewis a real-estate broker in San Francisco, CA. Contact your local board of realtors or neighborhood real-estate agent and have them appraise your house, then get the statistics for local rentals and do a comparison. Only then can you see whether renting makes sense. If it is a stable market and the rent will cover your mortgage and other related expenses, it make the decision process easier.

6-Do You Ever Plan to Return back Home?

Given the recent run-up in home prices, you may want to consider what the viability of purchasing a home in your neighborhood years from now if you decide to return. Will you be able to purchase a comparable house with your projected income is a question you will need to thing about.

7-Strange People Living in Your Home

For Gless, one of the most important issues is how you feel about the property. If you're very attached to it, then you might "feel like [the tenants] are invading your space," she says. "It's very hard to rent out a home and come back to it to find out someone has trashed it." This may be especially true if you leave your furniture behind. "You have to take off the personal hat and remember this is now a business," she says.

8-Are You Ready to Be a Landlord?

Last but not least, are you ready to be a landlord? Being a landlord isn't an easy undertaking. You need to be ready for phone calls anytime during the day is something happens to the plumbing, heat, electricity, broken window, broken appliances etc., the long list continues. Bottom line is you can't be a landlord unless you are close to the property, or have an acting property manager in the vicinity, which will cost you money. Hiring a property-management company will cost you 10% of your rental revenues to manage it. Agreements may vary with each property management company but you will be able to negotiate an agreement with one to pretty much handle everything that is involved with renting out and maintaining a property, including your mortgage payment and processing.

About the Author

Carls Sonnabend is a world traveler and truly a jack of all trades. The world is your canvas. Find the best travel and rental deals at his website http://www.rentinglist.com

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7 Spending Habits That May Lead to Debt

2009-01-25T15:37:00.000-08:00

7 Spending Habits That May Lead to Debt

by chiron99

The soundness of your spending habits can only lead two ways - to a growing portfolio or to debt disaster. Avoiding the following bad habits altogether or taking the time to recount financial missteps that have been made along the way will save money and stress down the road or point the way towards financial health.

1. Living beyond your means. It's a lot easier than many people think. Spending more money than what you make is a way of life for the financially reckless. Doing so repeatedly can leave a gaping hole in finances - a hole that needs to be filled from somewhere, such as dipping into savings, using credit more often, or borrowing from others. Before too long, those sources will be exhausted as well. Anyone who wants to bring their spending under control must have a financial plan that helps them live within their means.

2. Purchasing consumable goods with credit cards. Some individuals use credit cards to make everyday purchases such as gas and groceries, pay utilities, and pay the balance off each month. The individuals have a spending plan in place and are disciplined in paying the monthly balance. Unless you are someone who can do the same, avoid paying for consumable goods with credit. It's too tempting to not pay the bill for things that have already been consumed.

3. Choosing to live without a budget. It's a term many consider tedious and unnecessary, but nearly anyone can benefit from some sort of budget, or spending plan. Especially in a tight economy, it's necessary for most to budget for future unknown expenses, since they are certain to come around. Think of a budget as a method of telling your money what to do as a way of putting a surplus aside for the rainy days.

4 Paying for items with credit when you have the cash. It might be tempting to hold on to the cash when making small purchases, but using a credit card for such purchases may lead to a "something for nothing" mindset - receiving the goods but feeling like you didn't have to pay for them. However, it may be tempting to not pay for them tomorrow as well (especially if they are consumable items). At that rate you may end up paying even more with interest tacked on.

5. Relying too heavily on balance transfers. While the idea of transferring high-interest card balances to lower-rate cards is an effective idea in theory, the key is to avoid putting additional charges on the card and paying off the balance before the introductory rate expires. Unfortunately, most people continue to charge and end up with more debt. Another factor to be wary of is that some cards apply a different rate to new purchases. Make sure to read the fine print every time.

6. Making late credit card payments. It seems like no big deal - a $49 late fee here and there. But that's another $49 that could have been applied to the balance. More importantly, a payment received 30 days past due can cost you much more as your interest rate is increased and puts your account into default. If the payment is going to be late, contact the creditor and ask them to wave the late fee. Make sure the information shows up correctly on your credit report.

7. Forgetting to pay yourself first. As mentioned above, failure to plan for emergencies can bring about real financial disaster. It may only take one incident, such as a car accident to create a heaping pile of debt. You work hard for your money. Make sure to pay yourself. Consider using an online banking savings account with direct deposit to build a stash of cash in your online banking account. Online banking accounts often pay out higher rates. The money is still accessible but because it's harder to get your hands on, it's a solid choice for building up savings.

About the Author

AmericanMomentumBank.com provides a wide array of personal banking and business banking options and banking solutions tailored to your individual needs. For more information, please visit AmericanMomentumBank.com.

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Booms, Busts and Herd Mentality

2009-01-22T05:29:00.000-08:00

by Jose Roncal

Wall Street, the housing market and the whole economy have all gone from boom to bust. The global economic meltdown is a stark reminder of how giant bubbles tend to over-inflate until they reach critical mass and inevitably dash our hopes and dreams—dreams of comfortable retirements, steady incomes, education for the kids and even roofs over our heads. The current crisis and recession is touching virtually everyone and the pieces are likely to continue falling well into the future.

How do we move forward? If you're looking for a place to put money that promises a decent return, we encourage you to proceed with caution. We also encourage you to read our new book, The Big Gamble: Are You Investing or Speculating? There's an entire section filled with colorful tales of people who were so anxious to receive big returns, they got swept up in herd mentality—a condition caused by the temporary insanity of believing that something that sounds too good to be true, might actually be true. It's a condition that's led to ruin for many throughout history, and human nature being what it is, it's a condition that persists today.

Bubbles and Psychology

Many people are reeling from their financial losses and are in such a fragile state, they're vulnerable to herd mentality and primed for further losses.

Throughout history, a few dramatic economic bubbles have created such financial havoc that they've left us shaking our heads in disbelief, saying, "What were they thinking?" But to be fair, any one of us might get swept up in what former Federal Reserve Chairman Alan Greenspan termed "irrational exuberance" and be tempted to do a little trend-chasing of our own.

So, maybe you didn't get caught up in the tulipmania that swept through the Netherlands in the 1600s, back when a single rare tulip bulb could be sold for the price of a nice little bungalow along a canal in Amsterdam. You didn't get caught up because you weren't there, but where were you during the tech bubble of the late '90s?

If you were to analyze all roads leading up to a bubble, you'd discover that author Peter Garber had it right when he wrote, "Bubbles lie at the intersection between finance, economics and psychology." In this case, the word "psychology" specifically refers to the financial folly of herd mentality. In our opinion, psychology should top that list as the root cause for most of the events in our current crisis.

The tech bubble is still fresh in our minds, but today the term bubble refers to the housing bubble of 2004 to 2007. It's the bubble that led to sub-prime mortgages and triggered the unprecedented series of events that could end up costing the U.S. Government (taxpayers) $7.76 trillion dollars—not counting billions more in lost investments and corporate failures.

Housing Slump and Bad Mortgages

How did a bunch of bad home loans push our financial system to the edge of a cliff and plunge the world into recession? It's complicated, but we'll try to simplify it.

The housing market was sizzling hot a few years ago. In some areas of the country, home values were escalating at unsustainable double-digit rates. With the Bush administration pushing the "Ownership Society" meme, owning a home was becoming an entitlement and everybody wanted in.

Wall Street and lending institutions were eager to oblige. So-called ninja loans—the lowest quality of sub-prime loans—were extended to people who had no income, no job, no assets. The housing bubble was underway.

In saner times, borrowers might have stopped to realize that they were getting in over their heads, especially with adjustable rates that would eventually shoot up. But herd mentality rationalizes with: "if lenders are making it this easy to own a house, and if everybody else is buying, I'd be crazy to miss this opportunity."

Of course, most lenders believed that housing prices would keep rising, so relaxing their standards didn't seem so risky. But by mid-2007, the housing bubble was turning into a housing bust and the financial downfall began. Sub-prime borrowers defaulted leaving behind empty houses and unkempt lawns, thereby reducing property values and adding to the market decline.

But it was Wall Street`s securitization of these mortgages—mortgage-backed securities —that eventually turned the housing slump into a full-scale banking crisis. Major brokerage firms had bought up risky mortgages, sliced and diced them, then bundled them into packages and sold them as securities. Course no one really knew what these securities were worth, not the sellers, and certainly not the buyers.

The situation might have been more manageable had it not been for some other murky contracts related to the securities—credit default swaps —complex and cryptic documents sold as insurance policies to protect the underlying value of the mortgage-backed securities. They were such meaningless contracts, they lead to the collapse of companies that backed them, including AIG, the nation`s largest insurance firm.

Consumers Share the Blame

We can't blame everything on Wall Street. Herd mentality has lulled the consuming public into irresponsible and compulsive shopping habits—charging more and saving less. They have created their own individual debt bubbles and charged themselves into a credit crisis they can no longer manage. Between 1990 and 2007, credit card debt jumped from $214 billion to $937 billion, while our nation`s savings rate is the lowest in the developed world.

Jose Roncal is co-author of "The Big Gamble: Are You Investing or Speculating" which Donald Trump endorsed as "a great read". Many of the author's articles related to finance and the global economic crisis can be found at http://www.financialspeculation.com

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How the Retailers Make you an Impulsive Buyer

2009-01-07T09:11:00.000-08:00

by ksanjitha

There are always shopping carts. These have a huge bin compared with the size of most items for sale in the store, making it psychologically easy to toss in an item you don't need. Desirable departments are far away from the entrance. Most of the items you go to a department store to buy, such as light bulbs and laundry detergent, are located many, many aisles from the entrance. This means you spend your time walking by a lot of consumer goods on your way to find the item you want.

Impulse-oriented items are near the checkouts. Stores stock the latest DVD releases and glamour magazines there, along with overpriced beverages and candy. Because people leaving the store are thirsty, and they're going to be standing in line for a bit, which is the perfect place to entice them with some entertainment options.

The most expensive versions of a product are the ones at eye level. Take a look sometime at the arrangement of different choices for a particular product, such as laundry detergent. Almost every time, the most expensive options per unit are placed at eye level, so you see them first when you enter an aisle. The bulk options and better deals are usually on the bottom shelves. Items that aren't on sale are sometimes placed as though they are on sale, without using the word sale with a huge sign above them displaying the price, but it would be the same price you paid for them a week ago..

Commodity items, such as socks, are surrounded by non-commodity items, such as shirts and jeans. If you are looking to buy some socks, you have to traverse through a number of racks full of different types of clothing in the clothing section just to reach them.

If your mind is already open to the idea of buying clothes, you would be more likely to look at other clothing items.

Attractively packaged items are placed between less slickly packaged items. Look carefully at an aisle of, say, potato chips. The ones with the bright and slick packaging are generally more expensive, which isn't surprising. But notice that there usually isn't a section of just inexpensive chips. In most stores, they're sandwiched between more expensive items. If there is a section of just inexpensive items, they're much below the rack. Stores are designed to maximize the number of stops you have to make: aisles in which only two carts can fit, colorful and attractive layouts, escalators and, my favorite of all, sample vendors. Even if it's not conscious to you, every time you stop moving in a store, you increase your chances of putting something into your cart.

Essential items are placed in the middle of aisles, nonessential and overpriced items near the end because if you enter an aisle to get a staple item, you have to go by the other items twice; once on the way in and once on the way out. That gives these items two chances to be picked up by you. Some items are kept in cheap bins to make them appear as bargain sales by emulating the bargains found at cheaper stores, but the prices are still quite high. They just use the visual cue of a bargain store to make you think it is a bargain.

High-markup items are made to look prestigious. If you see something in a glass case that has lots of space around it, your gut reaction is to believe that it is valuable and prestigious to own, and for many people it can be as attractive as a light to a moth. The truth is that these items put there to make them distinguished. The most profitable department is usually the first one you run into, such as the cosmetic department is front and center. That's because it's very profitable, and by putting it in a place where people walk by time and time again, customers are more prone to making a purchase on an item with a very big markup.

Restrooms and customer services are usually right by the exit or as far from the exit as possible because if you need to use either one in the middle of a shopping journey, you have to walk by a lot of merchandise to reach the needed service, thus increasing your chances for an impulse buy.

About the Author

Anjitha Sakthidharan is a financial adviser and well known for his finance related articles . You can find more financial articles written by the author by visiting the following link .

home finance uk

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Financial Independence

2009-01-02T06:16:00.000-08:00

by Diamond Kiang

Financial and Personal Goals

Most people are so driven when it comes to achieving their financial goals. Indeed, when one starts to earn money, it is easy to be consumed into realizing your financial goals such as earning money for your retirement, or buying a new car, house, or gadget. Therefore, most people practice frugality and cutting down on expenses so they have enough resources to use in the future. In short, everyone is so consumed into trying to become rich.

There is only one reason for this goal - securing one's financial independence. The term is quite ambiguous, which is startling because almost everyone strives for it. The term financial independence encompasses a whole spectrum of goals and aspirations that is related to one's financial standings. In fact, most people want to achieve it so bad that they end up slaving themselves at work to achieve it.

Defining Financial Independence

In its simplest definition, financial independence is basically an end in terms of personal finances that most people strive to achieve. When you are financially independent, it only means you have sufficient income to provide for your needs and still be able to experience the comforts of life.

Your source of income will then determine whether you are able to gain that financial independence. There are two types of income sources: dependent or independent (also termed passive income). There are quite a few ways to earn passively, meaning without you having to work to achieve it. For instance, you can accrue money from out of the interest in your savings bank account.

Having other sources of income such as ownership of a business, bonds, rental properties, and many others help to alleviate one's financial condition to achieve their needs and wants.

How To Achieve Financial Independence?

When asked about financial independence, your first thought might be anything that is involved within your near future. The though of achieving a specific financial state would drive most people to do a lot of work and invest. Other ways that people take to achieve it is to reduce their expenses, save money, or reduce their overall cost of living.

Therefore, you need to make proper analysis of your spending habits in comparison to your monthly income. This will enable you to assess properly where you need to make changes to be that much closer to achieving your goal - gaining financial independence.

Enjoy What You Have

Different people have different standards when it comes to achieving financial independence. For instance, one can set aside a savings account that enables him or her to establish a life free of debt and that would define their financial independence. Another person would work hard to get to that financial status that enable him or her to buy any material things he/she desires.

The key to achieving financial independence is knowing what you really want. If not, then you can work all your life, slave yourself to money, and yet still be unhappy for whatever you have achieved. You have to keep in mind that money is not the source of all happiness. It does give you the satisfaction of being able to enjoy whatever you can afford with your money, but it is not everything.

And if you really want to succeed financially, you need to practice commitment. Unless you stick to your goals and plans, you will never reach the end towards your quest for financial success.

Three Secrets Towards Financial Independence

Make Money

The easiest way to make money that will deliver you towards your desired financial independence is to find a job that you enjoy or are passionate about. If possible, it must be something that requires less pressure and demands on your end. You will find this to be a more rewarding experience and it takes the burden off by making it seem like less of a work.

Save Money

While you are still earning, make sure to save a portion of it. And avoid the temptation of dipping your hands into it. Before you know it, you have enough money to afford anything you want to enjoy.

Invest Your Money Wisely

When you opt to invest your money, you need to consider it thoroughly first. Not all investments are good. You need to ensure that it will be worth your investments and that it will create more financial stability.

Diamond Kiang is an Author and a Successful Member of GDI who now earn money for life and replaced his full time income within 2 months using this simple but powerful system.See these sites now to see the most easiest work from home opportunity available on the internet today.

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Ways To Minimize The Financial Problems

2009-01-01T15:35:00.000-08:00

by Mark Jones1

In many households, financial problems are on the increase due to a number of reasons like-

- High mortgage repayments
- Rising energy bills
- Increased food costs
- Increased water rates
- Soaring petrol prices
- The threat of rising council tax bills.

Well, the list seems to be eerily too exhaustive.

In cases where there are a lot of debts - like credit cards, store cards, loans, etc. - the situation of rising costs may push many households into increased problems in the future. If you think that you may have to face financial difficulties, take action as early as possible. A number of ways can come to your rescue to reduce your financial strains, like:

i) Minimize outgoings: You can easily cut down on the money you actually waste each month on unnecessary outings. You can make conscious efforts to cut back on going out, buying clothes, and even money that you put aside for general spending. Rather than spending a fortune on outings, spend more time at home; enjoy cheaper entertainment such as DVDs and relish home-cooked meals.

ii) Consolidate debts: Seek the refuge of a low rate consolidation loan to reduce the amount that you have to pay out each month, especially by the way of expensive debts, like plastic cards and loans. The right consolidation loan can help you in two ways - reduce your number of repayments and bring down the amount of payouts.

iii) Explore additional income possibilities: So as to have additional money coming in each month, you can consider taking on an extra job to bring home more income. This can help you to handle your financial commitments at hand as well as cope with the ever-rising costs.

iv) Seek financial advice: Before your financial situation becomes a mess, seek financial advice if you are not sure how to best cope with it yourself. Trained and experienced ‘debt counselors’ who work for a number of debt charities may be able to lend in a helping hand, when it comes to sorting out your finances.

v) Contact your creditors: It may be worth contacting your creditors if you have a number of debts that you are grappling with, resulting in you overstretching your finances. Work out the possibility of modifying the term of your loan in order to reduce the repayment amount each month.

In the opinion of a leading financial expert, though people would welcome a further interest rate cut in March, this was not quite likely because of inflationary pressures. With the increasing fears over rising inflation, The Bank of England may not cut interest rates until May. However, interest rates may hopefully be cut two times in the latter half of the year.

Better Ways to get no fax payday loans at http://www.paydayloansinfo.co.uk/

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Day-To-Day Economy; Do We Really Need To Know About It?

2008-12-15T05:46:00.000-08:00

by Amanda Hash

If you are not the typical millionaire heir, whose millions came from “above”, it is essential to be well informed about the current happenings of the economy. Everybody must earn a living, whether it is through sales, business transactions or working for an employer. It is a great truth that somehow or other, the course of our economy affects our daily lives.

Ordinary Jobs

So many people have jobs that have nothing to do with economy. A mechanic, a builder, a postman or a farm worker might even hate numbers and accounting. These ordinary jobs are very far from the stock exchange or banking, but they all have one thing in common with a banker or a stock broker. They contribute to the economy with their work, for one thing and on the other hand, they use the banking services and are affected by the ups and downs of the stock exchange.

Headlines

For this reason, nobody can say that they have nothing to do with economic matters. It has a direct influence on our daily living, even though we are not aware of it. Proof of this, are the headlines of the major newspapers and TV news. “Interest rates an all time low!” Or, “Oil prices soar sky high!” Now, tell me that those events do not have anything to do with our daily lives…

A Healthy Habit

It is very advisable to take due note of the mayor events from the papers, TV or Internet. Look at the general trend, find out how the stock exchange keeps people happy or makes them panic. If there is a housing crisis or a building boom, if the increase in the price of oil will force you to travel by public transport or you can afford a full tank every day.

This habit will keep up your training and whenever you want to use credit, that is, every day on your credit card or an occasional loan, you will know what relationship there is between the Federal Reserve interest rates and the rates of your loan. Compare the interest rate the credit cards charge you, as well as the refinancing charge when you make the minimum payment, with the interest you pay on a personal loan or a debt consolidation loan and at once you will know exactly what to do.

Housing Slump

Look out for the latest news on housing and mortgages. Right now there is a certain recession in sales. You might want to keep your eyes open for decreasing prices and maybe buy and hold on until the recession is over. Buy with a mortgage knowing how to choose favorable conditions and low interest rates. Know that the builders need to sell and that some of them are even willing to pay for some of the mortgage fees.

Credit Report

Know about your credit report and how to check on it and keep it as best you can with a prompt credit repair.

Use your imagination and soon you will discover how many things, apparently far away from normal citizens, have a direct influence on us.

Amanda Hash is an expert financial consultant who specializes in Small Bad Credit Loans and Bad Credit Loans Lenders. By visiting http://www.yourloanservices.com/ you'll learn how to get approved and recover your credit.

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Borrowing To Get Out Of Debt

2008-12-12T06:06:00.000-08:00

by Gen Wright

One thing you should not consider doing is borrowing to get out of debt. Sometimes we get ourselves into situations where it seems like the only thing we can do is borrow more money to get out of debt. You might think of using money from family or friends or even your boss.

Logically you understand why this is a bad idea. But when you are in the situation it might seem like the only thing you can do. Even if it does seem this way, you should just not do it. Think first about why you are in the situation you are in. You have debts due that you can�t pay. It could be you have lost your job, or you have had an emergency that makes it difficult to pay your bills on time.

Whichever the reason, you have to admit that you can�t pay the bills, how are you going to pay back the money you want to borrow?

There are other ways to get yourself out of this rut however. You should start by figuring out what bill and as few of them as possible you can�t pay and approach the company. Many companies have help for people who have always paid their bills on time. They might be able to take lower payments until you are back to work, or for a couple of months. They might be able to lower your interest rate if you can make any kind of payments and they can close the accounts.

On top of that you might be able to combine some accounts together into a debt consolidation loan. This will usually help you save money every month and let you pay of your bills in a few years. A debt consolidation company will work with you to get you prices and interest rates you can afford each month. This is a long term fix if the problem is going to go on for awhile.

This isn�t going to be good for your credit if you do a lot of jumping around with your credit, or if you have to have your accounts closed, but the alternative is much worse. If you miss a payment and it is more than 30 days late it will be reported to credit bureaus and it can start affecting your credit immediately.

The only way around this is to pay something on the bill. Whatever you can afford to pay is better than nothing, and if you are upfront with the companies you can get some help.

If this continues on though you might need to find another way to make money in order to pay the bills or you will have to again work with the companies on a longer basis.

I'm �21,040.57 In Debt! Read My Personal Blog On How I Will Become Debt Free! I have some great plans on how to be debt free by 2009 Check them out at http://www.sick2debt.com

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Take Control Of Your Finances

2008-12-10T05:26:00.000-08:00

by Peter K

Over the past year it has become more and more important for households to take control of their finances, and as most people who do the household accounts will know this can be a difficult task given that the cost of living, bills, and various other outgoings have rocketed in this period of time. However, there is always room for improvement when it comes to streamlining our finances, as most of us are guilty of either mis-managing our finances in one way or another or wasting money on things that we do not really need.

One thing that you should do when getting your finances into to shape is make a list of all of your income and all of your outgoings. As you compile the list you will almost certainly come across things that you can either cut back on the cost of or cancel altogether. Many of us are paying for subscriptions or services that we no longer really need or use, and by cancelling these we can make savings right away. You can then put the money to far better use.

Also, try allocating yourself a set amount of money each month for things like going out, buying clothes, and entertainment. If you simply spend what you want when you want you will quickly find yourself losing control of your finances. However, by setting a budget with regards to this type of expenditure you can adopt the attitude 'once it's gone it's gone' but you will have to exercise determination and ensure that once you have spent your allowance you do not dip into your savings and take some more out.

When it comes to shopping try and find cheaper alternatives wherever possible. For example, if you tend to do your shopping at more expensive supermarkets such as M&S switch to a cheaper supermarket such as Asda, as you will be able to save a considerable amount of money in some cases, often without compromising on quality or taste. Also, with clothes shopping forget about getting the latest gear and gadgets as soon as they hit the shelves just buy what you actually need and don't spend extra money simply to keep up with your friends.

Reviewing your finances on a regular basis is an important part of good financial management, and you should make a comprehensive list of your income and outgoings, which you should refer to on a regular basis to ensure that it is up to date. If there are any changes in terms of your income or outgoings, make sure that you log this down so that you are always aware of what is going into your account and what is coming out of your account each month.

Finally if you have any spare cash that is not allocated elsewhere each month resist the temptation to head off to the shops and blow it on something that you do not even need. Transfer it into your savings account where it can earn interest, and you will then have some money put aside to help in the event of an emergency.

Peter Kenny has been writing financial articles for 10 years and is a writer for The Thrifty Scot, please visit us at Cheap Loans and Credit Card Visit The Convenience of Shopping Online

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10 Sound Budgeting Tips to Ensure Financial Freedom

2008-12-09T06:06:00.000-08:00

by michaelnew20

If you look at your bank account and wonder where all the money went, or swore you paid a bill and now you are told you are past due, you may have a budget problem or no budget at all.

This is not something that is taught in our traditional public education system. Young people are not usually armed with the knowledge of how to budget effectively unless their parents taught them.

There are numerous books, videos, and software out there for your reference on budgeting but it can be quite simple actually. Unless you are a chronic, habitual spender, then you might need to think about Spender 's Anonymous.

1. Write down all your incoming cash flow and all your bills.

2. Keep a check register. Today we all swipe our debit cards and think nothing of it. It isn't as easy to have your register handy when you use plastic instead of a checkbook.

But if you keep track of your purchases from home once a day or a couple times a week, you will then know what you are spending your money on and you can make some changes if you need to.

3. Categorize. Have a category for food, fuel, bills, entertainment, etc. This will help you realize how much of each check is going towards what you need. If you have some leftover you can move it to another category that needs some more or you can save the extra cash.

4. Think twice when making purchases. When you think you just have to have something, take a deep breath and really ask yourself if you need this, want to spend money on it, or if there is something more important you can put your money towards.

Once you have effectively thought and answered these questions, you will be able to make a better purchase decision.

5. Don't borrow money. Don't apply for credit cards because of the rewards or you want to blow money you don't have. Spend cash for everything and you'll not end up in so much debt that you can't see over it!

Perhaps having one credit card with a small balance would be smart for emergencies, but then don't carry it in your wallet. Keep it at home.

6. Start saving something now. Anything will do and when you have a chunk, you can then put it into something that will earn a better return. Most people think they have to have thousands of dollars to invest or to save but that is simply not the case.

You can pay for a financial professional to help you with your investment portfolio. That in and of itself is a good investment!

7. Find ways to cut back. If you only use half your cell phone minutes most months, reduce your plan. If you don't watch TV, get rid of your cable. Dial up internet service is good if you rarely get on your computer and is cheaper than faster connections. Go to local farmers markets and buy your produce.

8. Shop at thrift stores and yard sales to find things that would be nice to have but you can live without it being brand spanking new.

9. Children grow out of clothes so quickly, shop at the thrift stores till they are grown.

10. Speaking of children, do they really need an iPhone, an iPod, a Playstation, a Wii, an Xbox, and a Gameboy? Kids can entertain themselves pretty good and it is cheaper!

About the Author

Michael New Jr. is an authority in the financial industry. He has written hundreds of articles relating to consumer services and Payday Loans.

Contact Info:

Michael New Jr.

(866)294-4672

miken@checkcity.com

http://www.checkcity.com

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The Top 10 Qualities of Your Next Winning Goal

2008-12-08T06:19:00.000-08:00

by Mark Ford

No matter what you're going for in your life, having a goal is an essential part of the process. When you have a goal, you're more focused, you're more motivated and you're clearer about where you're going.

Making decisions is easier when you have a goal, because if you're really honest with yourself you know if one particular choice is leading you towards your l or away from it.

When you don't have a goal, life can be aimless, stagnant, depressing or self-destructive. Chasing the wrong goal, though, might be even worse than not having one at all.

Here are the Top 10 Qualities of Your Next Winning Goal

Fun. When the game is fun, the goals get done. Whatever your goal, make sure it's something you can enjoy working towards. Find a path to the finish line that makes use of your strengths and gives you opportunities for connection, fulfillment and joy.

Realistic. Your goal needs to be realistic and not too lofty -- a marathon runner aims to run one mile, 26 times. Use your track record of meeting or not meeting previous goals as your guide. Not meeting your goals has as much to teach you as meeting them -- instead of giving up, break the goal down further.

Personal. Goals need to be something you want to achieve, based on your own passion and vision. If a goal is something you or someone thinks you "should" do, it's not your goal.

Concrete. You goal needs to be tangible and definable. "I'm going to spend more time with my children," is an admirable thought. "I'm going to spend 30-minutes reading a bedtime story to my children every night," is a goal.

Revered. Achieving a goal is cause for celebration. Too often people swing from berating themselves for not working hard enough or letting themselves off the hook, to shrugging off their accomplishments because they're too busy chasing the next goal.

Extraordinary. Eleanor Roosevelt implored, "Do one thing every day that scares you." Your goal should be outside of your comfort zone, outside of your job description, outside of your daily routines and rituals that you're going to do anyway. We set a goal when we want to do MORE or do better.

Flexible. You may need to shift and adapt your goals if you find you're consistently off track. How can you think outside of the box and still get where you want to go?

Applied. You can only turn your passions and dreams into reality by setting and reaching your goals. Decide what you want, what you're going to do to get it, write it down and start doing it. Don't take it lightly, live your life "on purpose."

Top-of-mind. Goals need your attention, or they can be easily obliterated by daily life; other things will inevitably become more important and take over. Make your goals fit in with what you also want to do for your family, career and community, so that you're not choosing between them.

Shared. Goals need to be spoken out loud, committed and shared. When someone else knows what you're trying to accomplish, you give them the opportunity to support you. And for them, you're a living role model of inspiration, passion and purpose.

If your previous attempts to improve yourself have failed, go back to the drawing board and make sure that you're working towards the right goal. Once you set a winning goal for yourself, the road to change becomes clear.

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(c) Copyright 2008, Mark Ford

http://www.ffgroupconsulting.com

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For more than fifteen years, Mark Ford has been inspiring countless people to do things a little bit differently, to put fun back into the equation and to think outside the box. He has assisted top level executives and business leaders to increase individual and organizational performance, as well as to improve communication, leadership and motivation. To receive Mark�s monthly newsletter, Go for it!, sign up at http://www.ffgroupconsulting.com.

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Drivers Paying Through the Nose for Bad Habits

2008-12-07T06:12:00.000-08:00

by Tesco Finance

Motorists could be shelling out thousands of pounds repairing damage resulting from their own bad driving and car maintenance habits, recent research reveals.

Millions of drivers, already being squeezed by inflated motoring costs, are unwittingly running up colossal repair bills as a result of their own poor habits.

The study, commissioned by Tesco Car Warranty, found that more than three quarters (78 per cent) of motorists fail to keep up to date with regular maintenance such as checking tyre pressures regularly, while 14 per cent of drivers admit to driving around in the wrong gear.

Worryingly, many drivers are in the dark when it comes to knowing how much car repairs can cost, with almost half of motorists unable even to guess the price.

But it's younger drivers who are more likely to find themselves facing whopping repair bills. Forty three per cent drive with one hand on the gear stick and a third confess to 'riding' the clutch, which is not only dangerous but can cause wear and tear more quickly, resulting in an average £800 bill for a new clutch.

Almost one in ten (seven per cent) 24-to-35-year-olds admit to driving with their rev indicator in the top third of a dial and 15 per cent of motorists in this age group drive in the wrong gear, leading to serious engine damage.

It's not all bad news for vehicle owners; the over-55s are much better at everyday motor maintenance. A third check their tyre pressures once a week and almost three quarters declare they change their oil completely once a year, compared to just a quarter of 18-to-24-year-olds.

Allan Burns, head of insurance at Tesco Personal Finance, says: "Faulty driving and maintenance habits can lead directly to parts failing or suffering unnecessary wear and tear. Our survey has revealed that while some motorists admit to poor habits, many are unaware of the cost implications this could have.

"In the current economic climate, it's more important than ever for drivers to manage their motoring costs to ward off any unexpected bills. Keeping up to speed with general maintenance and curbing bad driving habits will ensure the roads are safer and could help drivers save thousands of pounds."

Tesco Car Warranty Plans are a simple and affordable way to help reduce the cost of motoring and offer peace of mind for drivers. There are three levels of protection--Value, Standard and Finest--with cover starting at just £99 a year. Customers can pay in 10 monthly, interest-free instalments or a lump sum.

The plans can be taken out for almost any car up to 10 years old with less than 100,000 miles on the clock, even if it has been out of warranty for years, as long as it has been serviced in accordance with manufacturers' guidelines.

Tesco Car Warranty Plans can be purchased online, via www.tesco.com/carwarranty and over the telephone, on 0800 997 8248. They are administered by Car Care Plan, the Bradford-based market leader in warranty programmes.

Customers can find out more about how to open a Tesco Child Trust Fund account in-store, on our website at http://www.tescofinance.com or over the phone by calling 0800 051 1873.

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Get Out Of Debt Without Filing Bankruptcy

2008-12-05T06:32:00.000-08:00

Get Out Of Debt Without Filing Bankruptcy by April Claeyssens

In today's gruesome economy many people are leaning toward bankruptcy. But would if you could get out of debt without filing bankruptcy? By filing a chapter 7 bankruptcy your credit report will suffer for 10 years. You owe it to yourself to get out of debt instead.

In the United States alone, consumer debt has reached about $30 trillion dollars. The average credit card debt for people with at least one credit card is $9,205. That's triple the average in 1990. But for now let's forget about these grim statistics and figure out the steps you can learn how to get out of debt without filing bankruptcy.

While we're in the biggest financial crisis since the Great Depression, the best thing you can do right now is to work for yourself. It's time well spent. The simplest place to start is to figure out where your money goes each month. Try not spending anything extra for 30 days. During this 30 day adventure keep track of all expense no matter how they were paid for. This will give you a true picture of where your finances stand.

Don't expect that getting out of debt will be an easy process. Anything worth having takes time and dedication. Go on a debt diet. Lay out your finances as they are and decide where you can cut back. Start buying generic foods in bulk. Understand your gas and electric bills. There are websites online that teach you how to read your statements and how to cut back. The utility companies will come to your house for free and tell you where you're wasting money. You can cut those bills in half if you're committed to getting out of debt.

Don't feel a since of entitlement during this period of financial disaster. Make a commitment with yourself and your family that until your debt becomes reasonable or gone that nothing extra will be purchased.

Always pay your bills on time. Credit agencies are cracking down by increasing interest rates to an incredible level with even one late payment. Start living with cash. If you don't have the cash to make a purchase then you can't afford it.

By living in a frugal manner, you can get out of debt and won't have to consider bankruptcy. If you file chapter 7 bankruptcy your credit score will be affected for the next 10 years. If you file a chapter 11 bankruptcy your score will be affected for the next 7 years. The average bankruptcy attorney charges $2,000 up front money. You will be better off and happier by not filing bankruptcy all.

It is possible to get out of debt. It took a lot of time to get in debt and it will take time to get out of debt. But in the end, you will have learned some valuable lessons and never have to worry about debt again. If you dedicate yourself to this process you can get out of debt without filing bankruptcy. That's the goal.

My name is April and I've worked as a personal financial consultant for many years. My goal is to help as many people as I can to see that debt-free living is possible. Please visit my website at www.savemoneysavetimenow.com

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Millionaire Mindset from the Science of Getting Rich

2008-12-04T05:27:00.000-08:00

by Daniel Britton

Is all this doom and gloom surrounding the economy getting you down? Can we take comfort from the fact that we have been here before and no doubt will be here again? The economy, like most things, behaves in cycles, sometimes up and sometimes down. No doubt, certain other factors have combined to make this period appear worse than others but the real issues are what can we learn from the past and what can we do to improve the present and future?

In 1912 Wallace D Wattles wrote a classic book on wealth creation called ‘The Science of Getting Rich’ which has inspired generations of entrepreneurs, business owners and free thinkers. It was credited as the inspiration behind the book and movie phenomenon ‘The Secret’. What follows is a summary of his thoughts. A free copy of the full e-Book is available from http://www.live2learnmedia.co.uk/getrich.htm

• There is a thinking stuff from which all things are made, and which, in its original state, permeates, penetrates, and fills the interspaces of the universe.

• A thought in this substance produces the thing that is imaged by the thought.

• A person can form things in his thought, and by impressing his thought upon formless substance can cause the thing he thinks about to be created.

In order to do this, a person must pass from the competitive to the creative mind. Otherwise he or she cannot be in harmony with formless intelligence, which is always creative and never competitive in spirit.

This is a key point, when we give up the competitiveness and jealousy of our neighbours or co-workers and concentrate on helping each other we can begin to attract wealth and prosperity into not only our lives but everyone we touch. The concept of a self made millionaire is a false one. Very few get rich on their own without the support of a team.

A person may come into full harmony with the formless substance by entertaining a lively and sincere gratitude for the blessings it bestows upon him. Gratitude unifies the mind of man with the intelligence of substance, so that man’s thoughts are received by the formless. A person can remain upon the creative plane only by uniting himself with the formless intelligence through a deep and continuous feeling of gratitude.

For many this can be a challenge especially during bleak economic times. However by concentrating on the good things in our lives or simple blessing like a walk on the beach or a sunny day we are in a higher vibration and more likely to gain more things we desire.

A person must form a clear and definite mental image of the things he or she wishes to have, to do, or to become, and must hold this mental image in thoughts, while being deeply grateful to the supreme that all his desires are granted. The person who wishes to get rich must spend his leisure hours in contemplating that vision, and in earnest thanksgiving that the reality is being given to them. Too much stress cannot be laid on the importance of frequent contemplation of the mental image, coupled with unwavering faith and devout gratitude. This is the process by which the impression is given to the formless and the creative forces set in motion.

The creative energy works through the established channels of natural growth, and of the industrial and social order. All that is included in the mental image will surely be brought to the person who follows the instructions given above, and whose faith does not waver. What is truly wanted will come through the ways of established trade and commerce. I believe it is Wayne Dyer who said that no-one has manifested a bag of money to fall on their head whilst meditating.

In order to receive when it is ready to come, a person must be in action in a way that causes them to more than fill his present place. A person must keep in mind the purpose to get rich through realization of their mental image and must do, every day all that can be done that day, taking care to do each act in a successful manner.

Continuing the cooperation versus competition theme, a person must give to every other person a use value in excess of the cash value received, so that each transaction makes for more life, and they must hold the advancing thought so that the impression of increase will be communicated to all with whom they comes into contact. Millionaires are not made in one off transactions but true wealth is created by delighting your customers and clients time and time again.

Wattles concludes by saying that “the men and women who practice these instructions will certainly get rich, and the riches they receive will be in exact proportion to the definiteness of their vision, the fixity of their purpose, the steadiness of their faith, and the depth of their gratitude”.

Whether you believe in the Law of Attraction or not, it seems clear that thinking negatively will only create bad feelings, despair and more negativity. If this is true then logic would suggest that the opposite may also be true and that positive thinking, optimism and action may set in motion a positive spiral towards health, wealth and happiness.

For your free copy of the full e-Book please visit http://www.live2learnmedia.co.uk/getrich.htm

Daniel Britton - UK Based author, teacher and coach
http://www.live2learnmedia.co.uk/getrich.htm
http://www.live2learn.org.uk

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Take Control Of Your Finances With These Tips

2008-12-03T10:07:00.000-08:00

by Lara Sawyer

Living in today’s world is not easy task. It is extremely hard to lead a simple life away from expensive objects, unnecessary expenditures and countless credit cards. I sometimes feel as if I were dragged by the society and the media to spend as much as I earn, and maybe more. Many find themselves in the same situation.

If when your paycheck arrives you only have some crumbs left from the previous one, you have a financial problem. It may sound exaggerated, but it is true. How long will it be until you start paying your bills late? Or missing payments? Or making the minimum payment on your credit card? That is not being financially stable. Quite the opposite, actually. What would happen if, God forbid, your car broke down?

If you desire to get a hold of your finances and get back in good credit standing, then this is the article for you.

Tip No. 1: Make Up Your Mind For Once And For All

You will probably feel very excited and ready to start making a difference in your life once you finish reading this article. But enthusiasm fades away quickly, and all that is left is commitment and perseverance. If you are not persistent and determined to truly change your imperfect ways, then you will not achieve your goals. And this rule applies to every aspect of life, not just finances.

Tip No. 2: Track The Money Outflow Like A Bloodhound

Yes, you got it, the idea is to make a budget, but first, you have to know exactly where the money goes. Take some time off this week when the kids are at school or when the nanny is watching them, go to a quiet place at home and try to remember what your most common expenses are. Take everything into account, how much you spend monthly at the supermarket, the kids lessons, the babysitter, credit card payments, etc, write down anything you can think of. This is an exercise which takes some getting used to. You will make it a habit in a few months time.

Tip No. 3: Plan A Monthly Budget

This is the easiest and fastest way to stop your finances from running wild. By being fully aware of how much money comes in and how much comes out, you will be able to recognize opportunities to save and spot unnecessary expenditures.

You will find it very hard to stick to this budget, but do not give up, be persistent, once you start seeing the results, all the effort will be worth it.

Tip No. 4: Save, Save And… Save

If the budget you developed has helped you to identify saving opportunities, make the most of them! Be realistic, do not expect to start saving like crazy the first few months, but you will get there, it is all a matter of patience.

Keep your savings on a separate account, and do not touch them at all. Create an emergency fund, or a vacation fund, knowing exactly what you are saving for will act as an incentive and will aid you in staying focused on your ultimate goal.

These are the basic tips for finance control. You will find that they perhaps they do not work for you, in that case, I would advise you to stick to the general plan, and change little things so as to adapt it to your particular situation. All the best!

Lara Sawyer is a professional loan advisor who helps people to secure Loans for People with Bad Credit and Unsecured Personal Loans. At http://www.fastguaranteedloans.com/ you'll find all of her tips on how to get approved without hassles.

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Drive Wise and Ease Your Pain at the Pump

2008-11-12T07:13:00.000-08:00

by Joe Cline

The evening news always finds a way to ruin your appetite. Skyrocketing fuel prices don’t help any to alleviate the discomfort. If you are just about at your wits’ end trying to fit your gasoline expenses into the budget, try the following tips on how to save on fossil fuel and avoid pain at the gas pump.

1. Find alternative modes of transport.

If you used to take the car several blocks down to the local grocer, try a bike. It can prove healthier in the long run. If you can, walk, but if you don’t feel like it, riding a bike can be healthy, enjoyable, and downright economical. You not only get extra treadmill time as if you’re on a regular gym regimen but you get to see the sights that you used to miss in the confines of your car when you ride a bike. This saves you on trips to the gas station and saves you those precious bucks.

For the daily trip to the office, consider taking the bus or the train. The bus fare or train fare will definitely be a lot cheaper than your regular tankful of fuel. Consider the following benefits aside from saving you the pain at the pump: you get to sleep on the train or bus instead of slaving behind the wheel weaving in and out of traffic; you get to read the news while on travel; and if you’re rushing through your workload, you can check your email on the fly. You’ll end up with less stress and more fuel savings.

2. Keep your car in tip-top condition.

Keep to your scheduled tune-up. Skipping the regular oil change or the check up of your car’s engine might save you a few bucks now but think how much gas is guzzled by a poorly maintained car.

Check the air-conditioning and the thermostat. Poor air-con performance weighs heavily on your engine and you end up wasting precious fuel. In cooler weather, roll down the windows and feel the breeze. It can be a worthwhile way of saving fuel and avoiding pain at the gas pump.

Tires that are poorly or under-inflated convert into added drag translating into more fuel burned by the engine to move the car. Make sure the tire pressure is at the manufacturer’s recommended level. The manufacturer knows more than you do in terms of safety and efficiency.

3. Drive with discipline.

Jump starts and screeching halts not only burn tire rubber, burden the engine, and wreak havoc on the car’s carburetor; they guzzle up fuel in surprising amounts, too. Adhere to the recommended acceleration rate and watch that tach.

Ease up on the gas pedal and drive within city limits. You not only save fuel but avoid fines otherwise paid for every speeding ticket you get. On the highway, know what your car’s ideal cruising speed is and stick to that. The bonus is you get to your destination in one piece with nary a bruise or a cut.

With a little discipline and concern, you can avoid pain at the pump as you conserve fuel and increase your savings.

About the Author:
Joe Cline writes articles for Austin real estate agent. Other articles written by the author related to Round Rock real estate agent and Austin Texas Realtor can be found on the net.

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The Benefits of Debt Settlement

2008-11-11T05:03:00.000-08:00

by Gen Wright

A debt settlement program works off a very simple philosophy. Reduce what you owe so the payments you make will payoff your debt faster. A debt settlement company will negotiate with your creditors to lower the balances you owe. This is typically achieved by the creditor agreeing to remove the interest and late fees accumulated on your account. Creditors are often in favor of this settlement, because it would cost them more time and money to take you to court.

It is important to know the benefits of choosing a debt settlement program versus other known options for credit problems (i.e. bankruptcy, debt consolidation, consumer credit counseling services, etc).

Debt Settlement is the quickest and least expensive form of debt relief outside of bankruptcy. Bankruptcy should be your last resort when deciding what road to take on your journey to being debt free. The reason being is that bankruptcy can stay on your credit report for up to ten years.

Like bankruptcy, most consumer credit counseling services appear on your credit reports. When creditors realize that you are working with a consumer credit counseling service, the creditor typically will notate such information on your credit reports. You heard right, now potential lenders know that you are having trouble managing your finances. Working with a consumer credit counseling service can be viewed as a red flag to lenders.

Next, a common misconception is when individuals confuse debt settlement with debt consolidation. These are two distinctly different types of businesses. Debt consolidation works by the individual taking out one loan to pay off numerous other loans (i.e. credit cards). Some say you are robbing Peter to pay Paul with this method. Not to mention, having a low credit score can result in having a high interest rate loan. Remember, debt settlement�s primary goal is to help you reduce debt by lessening what you owe, not creating new debts.

Most debt settlement programs last between 2-5 years or less. The amount of time may vary based on the client�s ability to make more than their minimum monthly payment. Enrollees in a debt settlement program are taught the number one thing that would have prevented them from being in their current credit situation. That one thing is making set payments on a specific date. In other words, you simply pay your bill on time. Once enrolled in a debt settlement program, you are then responsible for making one affordable monthly payment towards the balances of your reduced debts.

Client compliance is the main reason why some debt settlement programs fail. A good debt settlement company minimizes the amount of work the client actually has to do. By offering an automated payment system is one example of making the debt settlement process more convenient to enrollees.

Upon enrolling in a debt settlement program, your credit score will probably get worse before it gets better. This is still a minor price to pay for being given a substantial debt settlement and not having to file for bankruptcy. Most debt settlement companies offer credit repair once you have finished the debt settlement program. The credit repair is often the last stage of the debt settlement program. Overall, debt settlement is an honorable option for those individuals tired of fighting the losing battle against late fees and interest.

Lesley Wilson is the President of Choice Credit Group, a company specializing in Debt Settlement and Credit Restoration. Visit her today to learn more.

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To Much Credit Card Debt To Handle?

2008-11-06T05:24:00.000-08:00

by Steve Wilson

Many people have run into credit problems by taking on too much credit card debt. Usually this is not something that happens overnight. Rather it is a long process resulting from purchasing small things with your credit cards and only making minimum payments until your credit card balance becomes too much to handle.

This can leave many people feeling overwhelmed and unsure of what to do. If you have a good job you should be able to pay off your credit cards, but if you are like millions of Americans facing tough economic times it may be difficult just to put food on the table. Sound familiar?

Almost everyone has a bad month every once in a while, where it is not possible to pay all their bills. It always seems that something goes wrong at the worst possible time. Perhaps you lost your job or and some type of emergency and used your savings to pay over due bills. Difficult financial times can cause enourmous tress that can ruin lives and families.

In order to avoid bankruptcy or a cycle of your credit card debt spiraling out of control, you need to help yourself first. The first step is to identify what went wrong.

In order to identify what went wrong you would need to have a close look at your budget and spending habits. It is easy to say the bills are slightly behind because some event happened that you could not miss but that isn't the root cause of the problem.

Typically the root cause of money problems is a lack of planning, personal spending weaknesses and a lack of understanding as to what your money is doing for you. Money is a powerful force that must be harnessed to be a useful tool. If you can not harness the power of money you will forever expend all your energies cashing it rather than enjoying it.

So how do we harness the power of money? The first step is to plan your attack by creating a detailed budget. This will take some work but will be more than worth it. Consider the benefits of having a detailed three-month budget.

With a detailed three-month budget you will be able to account for how much you get paid, when bills are due and how much is owed and create a benchmark for determining how well you are doing sticking to your budget. If you use this tool wisely you will know that you have a large bill to pay in four weeks and will be able to budget a small savings program to reduce the amount that must be used in the pay period that the large bill is due. Having to pay less on the pay period of the large bill may mean you are now able to afford a reasonable amount of food.

The next step is to identify your weaknesses. This can be one of the hardest things to do. Many people become used to going out for lunch every couple of days, or out for an evening once a week or perhaps going clothes shopping frequently. These things by themselves are not bad but they may be compounding your financial troubles. Consider buying a cheap lunch once every three days. This may mean spending $5 a day 10 days a month for a total of $50. Would this pay a monthly utility?

The point is not to deny yourself everything but to limit things to a reasonable amount. Perhaps you could reduce purchasing lunches to once a week. This would be a total of $20 a month, $30 less than before. This may not seem like enough of a savings to make a difference until you apply the same logic to other areas of your life such as going out to the theatres. Now the savings may be $60 a month and that could mean the difference between paying a bill in full and hurting your credit rating by falling behind on your bills.

The final area to think about is what is your money doing for you? There are many small things that can be done to help you make your life better. For example, if you are saving $200 this check to put towards a $400 bill on your next pay period, why not put your money into a high interest account that is compounded daily. You may only see $0.15 interest this month but, as you can imagine, if you continue this process you are not only ensuring you are sticking to your budget but you are making a few extra dollars a year for doing so. Every little bit helps.

If you are truly in a situation where your finances are out of control then perhaps you should consider a debt consolidation loan. When you get a debt consolidation loan the lender pays off all of you r current loans and you enter into a repayment schedule with just one lender. This can be a great benefit to you as the amount being repaid monthly will be less than if you where repaying several loans individually and of course being able to meet your credit obligations fully and on time will help your credit rating.

Keep in mind the old saying, look out for the pennies and the dollars will take care of themselves. Most likely it was a bunch of small debts that seemed like pennies that got you into trouble. Further, if you are able to save a few pennies on a regular basis you will find that you have a few dollars to help out if an emergency is to arise.

Steve Wilsonis a staff writer for Debt Assistance, A leading settle credit card debtwebsite that provides consumers with credit card debt and tax debt help and information. For more information please visit http://www.debtassistance.biz/

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Discover the many ways on improving credit profile

2008-11-05T04:55:00.000-08:00

by Clint Jhonson

A study conducted in 2002 revealed startling facts about credit debt. Around 2 million Americans are asking assistance for credit counselors just to avoid going bankrupt. Among them, 75 percent were holding credit cards, which may be the source of their huge amount of debt. Six years forward, you are very much aware that this number has already doubled, in fact tripled. If only people will be provided with sufficient credit knowledge, they will not only be able to get rid of their debt, but they will also learn the ways of improving their credit profile.

The Ways of Improving Credit Profile

Before you proceed to reading the tips, here’s one credit knowledge that you should not forget. Contrary to what you may think, debt is not necessarily bad. It provides you extra capital for your business and gives you leeway on your budget, especially if you have emergency expenses. As a matter of fact, debt is one of the best ways of improving credit profile. It only becomes bad if your debt exceeds your assets, which means you don’t have enough money to pay for it.

Moving forward, your credit profile is highly necessary if you want to make a loan or a mortgage to pay off your debts. If it is damaged or you don’t do anything to improve it, there’s a huge chance that your application will be denied.

Here are the different effective tips of improving credit profile:

1. Pay your financial obligations on time. Paying your bills at the right time will eventually prevent you from paying huge interests for your outstanding balance. You will also be making a very good impression on the lending company—that you’re a dependable and faithful borrower.

2. Increase your credit knowledge by keeping updated credit file. You can ask a report for your current credit score at any credit card bureaus. Make sure that you can check all the information, such as the name, the purchases made, and other transactions that have been accomplished through your credit card. Any type of mistake may hurt your chances of improving credit profile, even hurt your credit standing. If there is something wrong, call the attention of the bureau immediately.

3. Spend less. This is actually no-brainer. When you live within your means, you don’t have to apply for a loan and increase your debt. If you’re already in debt, you can use your savings to pay off a huge chunk of your loan, so you don’t need to settle for those that have high interest rates or short payment terms. Spending less means focusing more on your needs rather than on your wants and preventing yourself from using your credit cards as much as possible.

4. Increase your credit knowledge. There are a lot of resources that you can find both online and offline that will teach you how to manage your finances wisely and improve your credit profile. When you teach yourself the proper ways of managing money, it would not be long before you can consider yourself a master in managing credit or debt.

With proper credit knowledge, you will not only learn how to manage your debt properly, but you will also help yourself in finding ways in improving credit profile. This way, you can easily avail of loans, just in case you need the extra money for emergencies and other important needs.

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Gas Credit Cards: 3 Things You Thought You Knew

2008-11-04T05:04:00.000-08:00

by Sean Masterson

If you think you know everything there is to know about gas credit cards, you may want to think twice. The gas cards of today are nothing like the gas cards of yesteryear, and people who don't see that don't know what they're missing out on. Before you go falling for the common myths surrounding these cards, here are a few facts to consider...

Myth #1: They're Not For The Credit Challenged

Remember when gas credit cards were primarily for those with credit challenges? Those days are long gone. If you don't have decent credit, qualifying for a gas credit card isn't going to be easy. The banks that issue these cards no longer cater to the sub-prime crowd, even though the interest rates attached to these cards still tend to be a bit higher than average.

If you're looking for a way to improve your credit, a secured card would be a better bet. If, on the other hand, you're looking for the benefits and convenience that come with a gas card, but don't qualify for one, look for gas companies that allow you to attach your debit card to a gas card account. It won't do anything for your credit rating, but it can provide you with some of the perks you're looking for.

Myth #2: Perks? What perks?

Think gas credit cards don't offer perks or rewards? Guess again. They actually do. You can get cash back, gas rebates, points for merchandise and more each and every time you use the card to pay at the pump. Just make sure you pay your balance off in full each month or the interest you pay will likely exceed the value of any perks or rebates received.

Myth #3: One Gas Station Only

If you avoid gas credit cards because you hate the idea of being stuck with one gas station, you're in for a pleasant surprise. Some of today's gas credit cards can be used at a variety of gas stations. Certain Discover cards, for example, offer five percent back on gas purchases. That's more than what you'd get using some of the one-stop gas cards available.

So if you still don't have a gas card in your wallet, now may be the time to reconsider that decision. Even though gas prices are somewhat better than they have been, they're still high enough to take a bite out of your budget. The benefits offered by today's top gas credit cards can go a long way in offsetting some of that cost.

For more tips on gas credit cards, saving money and avoiding getting taken, check out CreditCardWhizKid.com, a website that specializes in providing credit card tips, advice and resources.

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Learning About Budgeting And Money Management Is Vital To Avoid Financial Disasters

2008-11-03T14:12:00.000-08:00

by MIKE SELVON

Anyone who has worried and stressed about their finances has probably also had a lot of concern over doing a good job with the budgeting and money management of their personal affairs. It is important to have good money management skills in this day and age so that you are able to enjoy the many things that life has to offer, rather than constantly worrying that you just don't have enough money to get by.

Learning the ins and outs of personal financial budgeting and management is something that is ideally taught to youngsters at an early age so that they can develop good money management skills right from the start. The later someone begins to take financial management seriously, the more potential there is for them to get into personal money management problems and even into serious financial straits that can be difficult to recover from.

It is always best when children and teens are able to learn about budgeting and money management because this education and turn into a set of money management skills that will be with them for the rest of their lives. When people don't have the chance to learn how to manage credit and their personal finances, they will most likely waste money and burn through it as soon as they earn it, and they may get themselves into debt way over their heads.

There are many people who enter adulthood without having learned about budgeting and personal financial management. They find themselves exhilarated at the money they make at their first full-time job, and often such exhilaration leads to overspending and a lack of preparing for the future, of not being prepared for emergencies and of overusing credit cards and other credit vehicles that can soon lead to serious debt.

If a person sinks deeply into debt when they are still in their twenties, because of immaturity and poor money management abilities, then they can end up spending the next twenty years, or more, trying to dig out of the hole of consumer debt that they put themselves into. Even worse, poor money management and significant debt can also lead to bankruptcy all too easily and this is a blemish on a person's credit record that lingers for over a decade.

The ramifications and consequences of bankruptcy are more than just a matter of clearing away excessive debt and having your credit damaged. There are many other underlying issues that arise and filing for bankruptcy can affect your ability to get a good job, affect the insurance rates you pay, affect the interest rate on a mortgage, auto loan, and other types of loans, and can be an embarrassing thing to have to try to explain every time someone needs to pull your credit report.

The fortunate thing is that people who make the effort to learn about budgeting and money management will stand a good chance of averting personal finance money management disasters, such as bankruptcy. Indeed, it is never too late to start improving financial management in your life, yet starting sooner rather than later is always recommended.

Educate yourself about budgeting and money management from Mike Selvon portal. We appreciate your feedback and welcome your comments at our financial money management blog.

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More Money, More Problems?

2008-11-01T06:08:00.000-07:00

by Robert34 Allen34

More Money, More Problems?

Whether you can identify with a world-famous East Side rapper, gangsta and hip-hop legend or not, the simple refrain of Notorious BIG�s 1997 number one single, �Mo Money Mo Problems� seems to ring eerily true in the current economic crisis that has arisen from too much playing around with inflated credit and over-accelerated investments: �I don�t know what they want from me/ It�s like the more money we come across, the more problems we see�.

The single was released posthumously, after Biggie was shot in his native New York, an incident which is perhaps another vindication of the song�s message, as Biggie�s life actually seemed to become more endangered as he moved out of the drug game and into the realms of hip hop superstardom.

So how to negotiate your own path in this jungle of collapsing banks, where money causes rather than solves problems? The answer could be as simple as finding yourself a new bank account, starting afresh and re-adjusting your finances. Especially if you are at a turning point in your career, having recently retired or gone part-time or recently graduated and made your first steps on the jobs ladder: a new way of managing your finances is advisable.

It is not a song that whines about being famous, Gwyneth Paltrow-esquely telling us how �tough� it is to be a millionaire celebrity; instead, it is an insight into the hollow message at the core of the American Dream and this Dream�s assertion that money solves all woes. Indeed, looking at the state of both the British and US economy right now, not to mention the telling blow dealt to Iceland and its fast rise to financial glory, it looks like the more money each market conjured, the bigger the problems it is facing now.

There are several flexible accounts to be found with many familiar high street names. Alliance and Leicester offers a wide range of savings and current accounts which are also tailored to the ages and lifestyles of its customers: an over 50 account can provide travel and life insurance for a small added monthly instalment; many of the Premier 21 accounts can all be done online for technologically-savvy customers. Though the economy is troubling everyone, stick to sorting your accounts out, and let Biggie and friends write the songs about it.

Elmo Populus is author of this article on savings accounts .
Find more information about savings accounts here.

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Negotiating With your Lender – An Uphill Battle

2008-10-30T07:43:00.000-07:00

by Groshan Fabiola

As record numbers of homeowners attempt to avoid foreclosure, the responses of large lenders and loan servicers are drawing increased scrutiny. While these companies maintain that they are doing all they can to help the desperate borrowers, critics contend that homeowners routinely meet roadblocks; for example, many borrowers have trouble even reaching a contact person who has the authority to renegotiate the terms of their loan, while others negotiate modifications only to realize that they are as unaffordable as the mortgages they replaced .

Lenders and servicers are flooded with requests from homeowners who cannot afford their loans and the problem is complicated by the fact that these companies are not well equipped to deal with such work. Servicing units were originally intended to collect monthly checks from borrowers and then disperse the payments to mortgage holders. During the recent boom years, many people were looking to buy or refinance, but there was little need to advise borrowers or modify loans.

Agencies Not Meeting the Demand

While there are government agencies available to help homeowners stop foreclosure, these agencies are not able to deal with the sheer numbers; for example, in May, as Hope Now assisted 70,000 loan modifications, an estimated 85,000 families were unable to avoid foreclosure. That same month, 276,000 loans either entered or completed foreclosure. According to an April report by the State Foreclosure Prevention Working Group, a unit of the Conference of State Bank Supervisors, a regulatory alliance, about 70 percent of delinquent borrowers were not receiving the help they needed to renegotiate their mortgages to avoid foreclosure.

Borrowers Face Problems Going it Alone

While homeowners are free to renegotiate on their own, they face a multitude of problems. First, the typical homeowner does not have the knowledge nor the expertise to negotiate the best deal. Trying to modify an existing mortgage is no different from other areas, which do not require, but practically demand the assistance of an expert, such as taxes and legal services. Taxpayers are free to file their own taxes, however many choose to hire an experienced accountant to make sure complicated forms are filled out correctly and to save them the most money. Similarly, a criminal defendant may represent himself in court, but the assistance of a licensed attorney is so crucial to the justice system that a public attorney is appointed by the state if the defendant is unable to afford one. Homeowners need to realize that the lenders’ personnel in the loss mitigation department are highly trained to negotiate and collect past due mortgage payments. Loss mitigation departments at these lenders do not want to engage in debt settlements. In many mortgage cases, those going it alone hurt themselves by telling or showing the lender certain things they should not, which weakens their leverage and bargaining power and ultimately their chances at avoiding foreclosure.

Frustration

The efforts of the majority of homeowners facing foreclosure are typically met with frustration, with many lenders remaining reluctant to renegotiate mortgages despite the recent government mandates. Some lenders are simply overwhelmed with requests, while other times loans have been resold, and borrowers struggle to find the right contact to initiate any negotiations. Even those lucky enough to speak with an actual bank representative, and not a recording, face a downhill battle as the borrowers are typically speaking with those occupying entry level positions who are not the decision makers. As a result, many, if not most have had to deal with constant hang ups, transferred calls, and being put on hold for long periods of time. Trying to modify a loan , or negotiate a short sale can practically become a full-time job, which requires precious time that many facing foreclosure do not have as they struggle to make ends meet with overtime and second jobs.

Uneven Bargaining Power

The homeowner going it alone also faces an extremely uneven bargaining table. Homeowners struggling to keep their homes are desperate and the lenders can prey on their vulnerability. As a result, few distressed borrowers are likely to question the terms of a loan modification because they want to keep their homes under any circumstances. In addition, the current system rewards those who have fallen behind and neglects those that are spending every penny to make their monthly payments. For example, some lenders have told customers that they cannot do anything to help unless the borrower is at least three months behind. Borrowers who are current are not as desperate, but are less likely to receive a modification; however, once the borrower is three months behind, and a notice of default and foreclosure are imminent, the bargaining power shifts and borrowers are forced to take what they can get, even if the modification is doomed to fail. Many borrowers feel helpless as they sense lenders are trying to get away with giving as little help as possible.

For more resources about foreclosure prevention or even about loss mitigation please review this web link http://www.amerihopealliance.com/

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5 Simple Tax Tips for Individuals and Small Businesses - Avoid Stress While Saving Time and Money!

2008-10-29T04:43:00.000-07:00

by Michael Rozbruch

1. Be Careful and Thorough.

Avoid common problems like illegible hand writing, mathematical errors, transposition of numbers, and missing signature. These little oversights can end up costing you time and money if you are slapped with penalties.

2. Get Organized.

Allow enough time to get your "stuff" in order. For example, properly categorizing your expenditures now will save you a lot of time later. Come tax time, you will be glad you grouped your expenditures by category (match it with verbiage on Schedule C if self-employed) and not by month or name of vendor payee.

3. Be Flexible.

Timing your cash flow can save you money. In other words, always accelerate deductions in the year you are doing taxes for and always defer income, if you can, into the next year, thereby lowering your current year's tax bite. If you fall into the Alternative Minimum Tax, you may want a professional to advise you.

4. Know When To Ask for Help.

Tax preparation tools like TurboTax and TaxCut are great, but people with anything more than a straight W-2 (including anyone with even the smallest business �Schedule C") should be aware of the limitations of these software programs.

5. Don't be Penny Wise and Pound Foolish.

Hiring an expert CPA or EA to prepare your return is a small annual investment that can pay off big! Don't do your taxes yourself unless you are a straight W-2 wage earner that takes the Standard Deductions (in other words, someone who doesn't itemize or have any unreimbursed employee business expenses).

Michael Rozbruch is one of the nation's leading tax experts. A Certified Tax Resolution Specialist (CTRS), licensed CPA and the founder of Tax Resolution Services (http://www.taxresolution.com/), he helps individuals and small businesses solve their IRS problems and is dedicated to educating the public on tax planning and other strategies for managing their personal and business finances.

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Do Your Own Research

2008-10-26T10:57:00.000-07:00

This election cycle is really showing me how impressionable people really are. Consistently, I hear individuals talking about the political campaign and drawing conclusions without having a clue what they are talking about. They hear a talking point or a television ad and instantly believe what they hear. How foolish this is.

We are being taught a valuable lesson. Do your own research. Approach everything you hear with a degree of skepticism. If it is on television, bet the ranch that it is skewed. Everyone has an agenda. Find out what that is will reveal how trustworthy that source is.

Rush Limbaugh, America's favorite loudmouth, calls this situation with the media "drive-bys". I think that sums it up. A person draws a conclusion about a situation or a person based upon a few minutes of exposure. How do you know what you are receiving is the truth? You cannot.

Remember, there are always two sides to every situation. When people set out to distort the facts for their own agenda, they invariably present a slanted view. It might not even be on purpose. Nevertheless, this is what they do.

The way to avoid this is to get information from different sources. Researchers do this all the time. They uncover facts and then research in an effort to prove or disprove them. Hanging out with people who think exactly like you will not reveal new ideas. Businesses encounter this stagnation often when the same decision makers are allowed to exercise their power. Basically, nothing changes. New blood is necessary.

Put some new blood into your situations. Take everything you uncover at face value until you research it thoroughly. It is important to remember that everyone has a particular agenda. This single point will change you viewpoint of what they say.

http://dennisharting.blogspot.com/2008/10/do-your-own-research.html

Dennis Harting: Dennis G. Harting is one of the foremost authorities on motivation and overcoming procrastination. His international bestseller "The Ultimate Procrastination Handbook was sold on 6 continents. He has helped thousands improve both their business and personal lives as Head Coach of Your Rich Life. Originally trained in the field of sales, Mr. Harting has personally worked with hundreds of small business owners to help them increase their sales. An noted expert in business models, he helped numerous companies move to an employee-focused system. Today he writes materials to help people improve their physical, mental, financial, sexual, and spiritual lives. Your Rich Life is dedicated to changing the world one person at a time.

Surviving a Stock Market Crash - 5 Tips to Show You How

2008-10-26T10:23:00.000-07:00

By Fern LaRocca

It is scary when the money you were counting on for retirement, education, or your home is rapidly declining in value. Don't panic though. Here are some 5 tips to help you survive:

1. People are living longer:

Males that reach the age of 65 nowadays will have a 49% chance of living to 86. Women will have a 49% chance of living to age 89. With that in mind, it's obvious that you will still need the help of equities (stocks and stock mutual funds) to help you grow your portfolio and keep ahead of taxes and inflation.

Don't abandon these investments.

2. Rebalance where necessary.

Take a look at your portfolio winners. If you had targeted say 20% in international and it is now 30% of your portfolio. Sell enough to bring it back down to 20% and use that cash to invest in another sector that you don't own. Remember that you don't have a realized loss until you sell. Take just enough of a loss to offset the gain that you took above, and then you will pay no tax on the transaction.

3. Diversify.

Don't have any winners? Then you weren't diversified enough to begin with. You should have had enough in each asset class (large-cap, mid-cap, small-cap, international, etc.) and each style (growth, value, blend, balanced, etc.) to create an investment plan to reach the return you need with the risk you are comfortable with, and in the time period that you targeted. Believe it or not, there are some mutual funds that have managed to keep their returns higher than the more than 23% loss of the S&P500 Index this year. There are a lot of free resources such as morningstar.com that will give you the data you need to diversify and feel better about your holdings.

4. Make decisions now.

Act now. Don't look for bottoms. You don't ever know where the bottom is but you do know that stocks are steadily getting cheaper and there are some fantastic buys out there. You may not have control over the market but you do have control over what you buy and what you sell. Don't wait.

5. Get a guaranteed income for life.

Along with positions of cash, bonds, and equities, a fixed annuity should play a part in a portfolio of someone close to working part-time or retiring altogether. An annuity is an insurance contract that in return for a lump sum of money gives you a steady fixed stream of income that is guaranteed for your life or the life of you and your spouse. For people who want to spread out their risk, this is an excellent addition to a portfolio. The downside is that you don't get any inflation protection since the payments remain the same. The upside is that you get an income stream guaranteed by the insurer so you don't have to worry about managing the money. Of course, you need to make sure the insurer is financially strong enough to be able to pay you throughout the term of the contract.

People like Floyd Odlum made millions during the Great Depression, not by fleeing into cash and bonds but by buying into stocks as the market dropped. His motto during the crash was: "There's a better chance to make money now than ever before."

Don't lose this opportunity to arrange your portfolio to meet your future needs. Follow the five steps above, and you won't have to worry about what the stock market is doing ever again.

About the Author: 2008© Fern Alix-LaRocca CFP® All Rights Reserved Interested in more tips to survive this crisis? Get the Whole-Hearted-Way eNewsletter written by Fern Alix LaRocca, a fee-only Certified Financial Planner TM with over 24 years in the industry today.

Source: www.isnare.com

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Bad Credit Mortgage Refinance

2008-10-26T10:22:00.000-07:00

By: Jennifer Hershey

If you are looking to refinance your mortgage but believe you will be unable to because your credit may be challenged by late payments, bankruptcy, charge off's, or unpaid medical bills to name a few, don't worry, there is hope.

There are literally thousands of lenders across the United States that specialize in all different types of mortgage programs for people who have challenged credit.

They are not the typical banks you find down the street from your house that deal with perfect credit only. Nor are they hard money lenders that charge outrageous mortgage rates. They are known as wholesale lenders.

Wholesale lenders work closely with mortgage brokers. Mortgage brokers are the people who work with people looking for mortgages in the way of counseling, educating, and locating a loan for people who find themselves in a unique situation and have trouble finding a loan on their own because their needs may be special.

Keep in mind, wholesale lenders are out there by the thousands, and they are very competitive. So be sure to shop around. Just because you have bad credit, it does not mean that you should be at the mercy of mortgage companies. There are plenty of lenders out there who have programs to lend money to people with bad credit.

The best place to begin your search for a bad credit mortgage refinance would be the internet. Make an attempt to contact no more than four lenders, allow for them to assess your situation, than base your decision on the one that offers you the best deal that meets your needs and budget.

Author Bio

Jennifer Hershey has more than twenty years of experience in the Mortgage Industry as a loan officer. She is the owner of www.explainingmortgages.com, a mortgage resource site devoted to making mortgage terms and products easy to understand.

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How to Successfully Navigate Your Business through an Economic Downturn

2008-10-26T10:17:00.000-07:00

by: Terry H Hill

An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.

While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.

The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.

Here are best practices that will help you to successfully navigate your business through an economic downturn:

Goals:

The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.

Objectives:

• Conserve cash.

• Protect assets.

• Reduce costs.

• Improve efficiencies.

• Grow customer base.

Required Action:

• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.

• Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.

• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.

• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.

Recommended Best Practice Activities:

The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.

1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.

2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.

3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.

4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.

5. Re-negotiate with your suppliers, lenders, and landlord:

i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.

ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.

iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.

6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.

7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.

8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.

9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.

10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.

Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.

Copyright © 2008 Terry H. Hill

You may reprint this article free of charge in your newsletter, magazine, or on your website, provided that the article is unedited, and that the copyright, author's bio, and contact information below appears with each article. Articles appearing on the web must provide a hyperlink to the author's web site, http://www.legacyai.com

Terry H. Hill is the founder and managing partner of Legacy Associates, Inc, a business consulting and advisory services firm. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. To find out how he can help you take your business to the next level, visit his site at http://www.legacyai.com

To download a copy of this article, click on this link: http://www.legacyai.com/Article_Downturn.html.

About The Author
An author, speaker, and consultant, Terry H. Hill is the founder and managing partner of Legacy Associates, Inc., a business consulting and advisory services firm based in Sarasota, Florida. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. Terry is the author of the business desk-reference book, How to Jump Start Your Business. He hosts the Business Insights from Legacy Blog at http://blog.legacyai.com and writes a bi-monthly eNewsletter, "Business Insights from Legacy eZine."

By signing up for Business Insights from Legacy eZine at http://tinyurl.com/2t4fxs you can keep abreast of the latest tips, tactics, and best business practices. You will, also, receive the free eBook, Jump Start Your Knowledge of Business.

Contact Terry by email at http://www.legacyai.com or telephone him at 941-556-1299.

Options Trading - Futures Option Trading - Options Investing 501

2008-10-26T10:01:00.000-07:00

Options Trading - Futures Option Trading - Options Investing 501 by optionstradingdomain

The International Securities Exchange (ISE) and Boston Options Exchange (BOX) are included in the electronic marketplaces. However you also run the risk that the stock will continue to fly upwards and you miss out on that profit. There are two basic types of Forex options available to retail traders. Online stock option trading follows the same rules as any options trading. Self discipline, confidence, the ability to see the bigger picture, accepting losses as part of the game, controlling your fear and greed - all of these elements work together to make you a successful trader. An option is a derivative, meaning its price is based on an underlying asset. Having said that, there are a number of very successful trading systems that work well over the long term. With the right to purchase or sell the underlying security at a specific price expiring on a given date, the option will expire worthless if the conditions for profitable exercise or sale of the contract are not met by the expiry date. Enquire about the financial status of the company before investing in it. Once you learn to look at the bigger picture, rather than focusing on the individual trades, you'll be a lot more successful in the market. Once you learn to look at the bigger picture, rather than focusing on the individual trades, you'll be a lot more successful in the market. The other option is a single payment option trading, also called SPOT, which allows more flexibility to traders. There are two basic types of Forex options available to retail traders. We have been getting a lot of questions lately about options trading because of our new options trading service, so I wanted to use this week's article to explain the basics of trading options. Options also help the investor to purchase stock at a lower price and to benefit from a stock prices rise or fall without owing the stock or selling it outright. In Europe, the main futures and options exchanges are Euronext.liffe and Eurex. It's important to realize that a winning system is one that consistently delivers profit over a longer time frame - and part of the equation is that a percentage of trades will be losers. Traders can limit the financial risk while keeping control over a block of stock. It says to me, you're more interested in getting money than really helping me. As the options market is very volatile, traders prefer to opt for a fully managed account with the brokers. The open-outcry marketplaces are Philadelphia Stock Exchange (PHLX), American Stock Exchange (AMEX) in New York City, the Pacific Exchange (PCX) in San Francisco, and the Chicago Board Options Exchange (CBOE). Online stock option trading follows the same rules as any options trading. Can you understand what's written?Option trading terminology can be difficult to understand, especially for someone just starting out. Once you start to look at trading stocks, you find yourself plunged into a confusing nightmare where hundreds if not thousands of people are pushing "their" system that is supposedly infallible. You want to subscribe to one that at the very least publishes weekly. Another approach is to take your profits after a certain percentage of gain, and occasionally put up with a medium sized loss. The winners in online stock option trading make their money by educated guessing. Do they want money up front? Most of the newsletters are free. The winners in online stock option trading make their money by educated guessing. Why Choose Sogoinvest: cheap trading stock optionsContact sogoinvest: Contact Online stock trading company. Using the complex strategies does not necessarily result in better gains than with basic puts and calls. There is a lot more to consider when trading options and a lot more terminology you need to know then when trading stocks.

Learn more about Options Trading | Futures Option Trading | Option Trading Software

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3 Foolproof Ways To Soar Through A Recession

2008-10-26T08:12:00.000-07:00

by Allyn Cutts

Copyright 2006 Cutts Group, llc

Winners are ALWAYS looking for ways to grow their business. They trust their company, trust their customers to come through for them, and realize that a financial crunch offers advantages that aren't available during better economic times.

1. Get More For Your Advertising Bucks
When the economy makes a turn for the worse, it just makes sense that your advertising will give less of a return than during and economic boon. Sure there�s a lot less money being spent, but you don�t have to have to watch your profit margin plummet!

Think about it... advertisers are feeling the recession just as much as you are, and are more desperate for clients. It�s the perfect atmosphere to negotiate your way to lower costs - even if you are already getting a good price. Every advertising penny you can save, is that much more profit you�ll earn on the products.

Have you thought about getting free publicity? Local newspapers are always looking for something of local interest. Make the news! Publicity is free, but a wonderful way to get your business in front of potential clients.

Do your advertisements really need to be as big as they are? We tend to think the big is better, but the facts are that short ads with 11 words or less often generate higher response than large ads. Give it a try, and trim some costs right off your advertising bill.

2. Take Advantage Of Big Ticket Sales
Not all of your customers suffer during recession. Remember that there are always people who are thriving financially, so don�t be afraid to make big ticket sales offers. Additionally, when money is tight, people who place a lot of stock in your product will value it even more.

Think about ways to create products similar to yours, but with much higher prices. Internet marketers often create members only sites and sell their products at much higher prices. Hey, they�ll obviously make fewer sales, but the people who really value the product will buy. Each sale will net an immensely higher profit. Think about it like this... even though the sales are fewer, the actual profit may be even greater than when it was sold at a lower price.

3. Maximize The Customers You Have
Your customers already know that you have great products and provide satisfactory service. They trust you to come through for them. Think about it... it�s much easier to make sales to someone you already have a relationship with.

Use every opportunity to increase your sales volume within the customer audience you already have. Do you have a product that goes with the one they are purchasing? Offer it to them at the register. It�s a proven and effective method for increasing sales. You may be shocked at the additional sales you can generate from those who are already buying from you.

Who is Allyn Cutts, and why should you care?
Allyn has spent over 24 years helping businesses like yours find new customers and increase sales to current customers. Allyn is a marketing and sales fanatic, providing measurable marketing solutions that drive huge results for small-to mid-size business clients. Allyn works personally with clients to design and deliver off-line and on-line direct marketing strategies that focus on metrics and measurable results. You can learn more about Allyn Cutts at http://www.AllynCutts.com and you can call 610.437.4106 between 10 AM and 4 PM Eastern Time Tuesdays and Thursdays.

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Financial Planning For Retirement: For Worry-Free Retirement

2008-10-26T08:09:00.001-07:00

Financial Planning For Retirement: For Worry-Free Retirement by Stanley Emerson

Planning can be a tedious activity especially if you are planning for retirement. Many people realize how advantageous financial planning for retirement can be while others find it mysterious.

In fact, most experts say that for people who are only making enough money to make due payments in each month, then it means that they should start contemplating on how they can still make money even if they are already retired.

Surveys show that almost 75% of the American population is earning enough money to pay their monthly bills. This means that they do not have any extra money to put in a bank or in any financial institution that could provide them enough profit after their retirement.

What's more Social Security is not enough guaranteed income for retired people to live on. Actually, it is still a big question if one�s Social Security will still exist when the retirement day comes.

Hence, it is extremely important to generate some methods that will provide an individual a reasonable amount of money in the future. This should be done regardless of how much an individual earns, the important thing is to start saving today.

1. Visualize and calculate

It is important for a person to visualize his or her own situation after retirement. Then, you can calculate how much money is needed to live on after retirement. Furthermore, people need earnings that compensate 75% of the present amount that he or she is expected to take home.

2. It is important to seek the help of a financial planner or any person competent in financial planning.

By asking for advice from the experts, you will be able to gain more knowledge know how to proceed for you situation. These people are proficient and knowledgeable in all kinds of financial planning and they can provide the most feasible and workable approach for your individual needs.

3. Get rid of loans, debts, and other financial obligations in as little time as possible.

By simply paying off all debts, loans, and other financial obligations in a shorter period of time, you can realize a substantial amount to invest for that retirement. A good financial planner will know exactly how to direct you so you can meet your retirement goals.

Henry Clark can show you how to make the most of your retirement years. Visit his website and learn more http://www.push-button-online-income.com/retirement

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Controlling The Speed Of Money

2008-10-26T07:58:00.000-07:00

Controlling The Speed Of Money by Kalinda Rose Stevenson, PhD.

The most widely publicized way the Federal Reserve controls the money supply is by changing its interest rates.

Before scheduled Federal Reserve meetings, the media will report about the effect of any possible interest rate changes on consumer items, such as credit cards and mortgages. It is typical for the stock market to react before the meeting, based on speculations about what the Fed might do with interest rates.

Despite this kind of media attention, the interest rate changes do not directly affect consumers. When the Fed announces a change in interest rate, it does not affect your credit card interest rate directly. It refers to the interest rate the Fed charges commercial banks to borrow money from the Federal banks. This is also called the discount rate.

The change in the discount rate affects the commercial banks directly. It makes it more or less profitable for the banks to borrow money, which the banks then loan to their customers.

These are the essential points to keep in mind: 1. The purpose of the Federal Reserve system is to control the amount of money in the system. 2. The purpose of commercial banks is to make money. They make money by loaning money to borrowers.

It is a matter of profit. If the banks must pay more to borrow money whenever the Fed raises the interest rate, the banks make less profit from their loans to customers. If the banks can pay less to borrow money whenever the Fed decreases the interest rate, the banks increase their profit from loans to customers.

When the Fed changes the interest rate it charges banks, this affects the speed of money in the economic system. The lower the interest rate, the faster banks can loan out money and increase the amount of money in the system. The higher the interest rate, the slower banks can loan out money. So, even though the interest rate directly affects banks, these rate changes matter to all of us.

Ultimately, a change in the Fed interest rate might affect the interest rates on your credit cards and adjustable mortgage, but it is not a direct result. The Fed does not change consumer interest rates. Banks do. If your interest rate goes down on your credit card, it because the bank decided to lower the rate, not because the Federal Reserve changed its interest rate.

By Kalinda Rose Stevenson, Ph.D.

Are you earning money or making money? Read my real estate investing book book, "No Money Limits," to find out how a bank creates money. Discover owner financing to sell quickly.

Click here for other unique 'credit card interest' articles.

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Budgets during Economic Crisis

2008-10-26T07:54:00.000-07:00

by Mr. Jeff Nelson

During this time of economic crisis budgets have become an essential part of almost every Americans life. With so many huge financial companies such as A.I.G and Frannie and Freddie Mac having trouble, it may seem like there is no end in sight. At a time like this, budgets for every aspect of your life may seem like a reasonable idea. Okay, that may seem like jumping to conclusions, but there are a few different aspects of your life where budgets can really help.

The first aspect of your life where budgeting your money may help is when you are establishing a college fund for your child. College is extremely expensive; this is just another reason as to why you should start a college fund right now for your child. During this time it may be very hard to think about setting money aside to save for your child’s future but it is very important. At a time like this the safest place to keep money is in a savings account. Although the interest rates are not very high for a savings account, savings accounts are one of the safest places to save money, due to the instability of the stock market. One of the hardest things to do during a time of economic hardship is to restrain yourself from taking money out of a child’s college fund to pay for other necessities, it is crucial that you do not touch this account having a college education is priceless in today’s world.

Another essential place where budgets are necessary is when you trying to pay off credit card debt. This is a time when you don’t want to fall behind with your credit card payments, falling behind with credit card payments during this economic crisis will only end up severely damaging you for the future as far as your credit score. The best way to deal with credit card spending and payment is simple; don’t spend money that you don’t have. That means that you will always have the money to make payments to your credit company and won’t end up in bad standing with credit companies.

This is a time where it may pay in the long run to start purchasing products that are store brand. This can save a lot of money when you are shopping on a budget. Many people believe the common misconception that store brand products are not as good as brand name products which is incorrect. This idea of switching from brand name to store brand should encompass your whole life, not just with beauty or grocery products. If you can make the switch over to store brand products it can save you hundreds of dollars a year, and who wouldn’t be happy with a few hundred dollars extra without any serious sacrifice.

Jeff Nelson gives advice on money management. His advice helps you to eliminate your debt faster. To make online budgeting easy and set up your Budgets for each category you are targeting, visit www.mint.com

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Tips to Eliminating Debt and Bright Money Future

2008-10-26T07:47:00.000-07:00

by Eric Jilson

There is a lack of financial and investment education in our schools, among the many things not taught. If you are a high school graduate that doesn't know much about finance, except how to write a check and balance your check book, investing or saving for retirement is probably something you haven?t given much thought to. So here is some advice:

Eliminate Debt

To best eliminate debt, calculate and make a list what you are spending on each debt payment and who you have it with. Make a commit to that amount by permanently adding it to your budget. This part of your budget, I like to call debt payoff money, cannot change until you pay off all of your debt for this method to work best.

If you have any money left over, get a raise or are rewarded a bonus, add it to this budget item. Do not go out and blow it. The most important factor to eliminating debt is to not add to it making purchases you really do not need. That's how you got yourself in debt. If you can't pay for it cash, you don't need it.

Take a look at and put each debt into one of the following categories, listed in order of priority: high interest debt, non-tax deductible debt, tax write-off debt, and mortgage.

High interest debts are your credit cards or high interest loans. These should be paid off first. Consider of changing to a rewards card like a rewards credit card. Once this debt is eliminated, take the money you were paying on your cards and loan and add it to payments next on the list to be eliminated.

Non-tax deductible debts are lines of credit, bank or car loans. Because you are adding the money you used to pay on your cards to these payments, you will pay this debt off much earlier.

Again, after you pay off your loans, take the money used on your cards and loans and put towards your student loan or other tax deductible debt and erase this debt.

You are almost debt free. Your mortgage is the last debt you want to apply your debt pay-off money to. You are going to be making extra payments with all the money you have freed up by eliminating your other debt. You are not simply paying interest on your mortgage; any extra money you pay on your mortgage goes directly towards the principal. Let's say you have a $100,000, 30 year mortgage with a 7.5% annual interest rate.

You have been making your regular payments for 5 years. Now you decide to send in your extra $250 each month. You have reduced your mortgage by approximately 12 years. That is 12 years earlier you will own your home, not the bank. To find out when you will pay off your mortgage, use a mortgage pay-off calculator found on-line. The excitement over how many years you will be debt free will give you the motivation to stick to this plan.

10% Rule

Do not start investing before you eliminate your debt. First and foremost is the importance of becoming debt free. This is an exception, one of the oldest investment rules, is to put aside 10% of each paycheck and investing it. This isn't going to really mess up your monthly budget and something anyone can start easily. By investing a percentage of your income, instead of a random amount, will motivate you to be consistent. If your pay fluctuates, so will the 10% amount you are putting away. So, go ahead and start build retirement fund.

Be Realistic

Common sense tells us packing a lunch instead of eating out is going to save you money. Going to the movies with your family every Friday night is obviously going to cost you. Going to the Expensive O'Latte Cafe every morning instead of brewing your coffee at home is a sure budget leak. The question is why do we do these things? We have become comfortable. Everything is automatic or drive-thru or my favorite, "I just had to." Did someone come up to you and put a gun to your head and say, "You have to buy a newer car that thing you've been driving around for two years is a piece of junk." I highly doubt that happened.

Any car purchase, whether it is new or used is not an asset or an investment. The minute you drive off the lot in your new car its value automatically depreciates. Newer cars carry higher insurance rates. Buying new is just not a wise decision. Used cars depreciate too but the huge loss felt with a new one is not there. The rate of depreciate is much lower. Take car of your car, get regular oil and filter changes, get a tune up and run it into the ground. After that, buy another used car and do the same thing.

Bonuses and Raises

This is so frustrating to watch. People who get a raise or a bonus and spend it on something, that at best could be described as dumb, drive me crazy. Invest your 2% raise by adding the amount to your 10% you are already investing. Take your bonus and put it in an emergency fund savings account. You lived with before your raise or bonus, why do you long to spend it now? Don't be stupid.

Now what?

Keep doing what you are doing and better if you can. The temptation to buy what you cannot afford will never go away. Over time you will also refine your ability to distinguish a want from a need, which will help you financially and prevent new debts. Keep up with new investment strategies, study up on how they work and what their returns are, and don't be foolish.

We've created an outstanding resource for you on the topic of chase flexible rewards. Drop by today at http://www.everlife.com/news/credit-card-rewards/.

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What is an Economic Recession?

2008-10-26T07:37:00.000-07:00

by Simon Tan

Nobody wants to face a recession. It is because people fear of losing their jobs, stock market crashes, people go bankruptcy and so much more can happen. However, this is something nobody can avoid it and must learn how to face it. So what actually is considering as an economic recession?

In most country, it is normally defined as a technical recession when there are 2 consecutive of negative growth in terms of their GDP. Such situation will causes a lot of panic as the entire economy slows down. There are always sign of such event before it even gets started. Consumers spending will drops, employment rate in the country decline and industrial manufacturing production drop and there will be more volatility in the stock market.

Historically, an economic recession will normally last for a period of about 1 to 2 years as cited by a lot of expert.

Why Can't the Government Stop Recession?

Recession period causes a lot of stress to the people and most people will the finger to the government. However, it is important to know that recession is deflationary in nature and if the government tries to rescue the economy, they would have to pump in a lot of money to improve liquidity. Such move will cause an after effect of increase inflation which will possibly lead to stagflation. That is why most government is always very cautious in this move whether to increase liquidity to the economy and reduce increase rate.

How Economic Recession Normally Get Started?

It is a fact that the rich will always get riches while the poor gets poorer. When the rich sees an opportunity, they will know how to speculate the market as though it is a great way to make money. After a while, the rest of the population will follows and started to make some quick money. The combination effect of all the poor and middle income people make the entire market so huge and nobody will ever think of supply and demand. Economic bubbles will soon explode and it will be fierce and fast. However, the rich would be smart enough to exit way before such bubbles occur. So it is the majority of the population who will suffer and the governments are force to step in to clean up the mess.

Phases Of An Economic Recession

There are always few phases an economic recession has to go through, that is the period of slowdown, recession, recovery and than expansion again. Usually the period of recovery and expansion will last much longer than the period of slowdown and recession. Most people like to chase after money during the period of expansion, when the market is very hot and this is a sure loose strategy. Most people will never learn that they should position their investing during recession period where everything is at their cheapest.

How to Rescue a Recession

Lowering interest rates is the most common measures the government will take to help stimulate the economy. As mention earlier, the government will be very cautious in such move as this will cause inflation which will further dampen the spending from the consumer. It will normally implement over a period of times when situation forces them to do so. There are however times when the bubbles are so big that such recession lasted for a prolong period of times like the one happens on thirties. This will make the whole economies to go into depression which is the worst things that can happen.

Conclusion

So, please bear in mind that making money from the stock market is very possible but do not just chase after the market. You need to study the situation very carefully and the strategy of buying low selling high will always work. You need to have a long term vision and do not speculate. If you know the cycle of accumulating your cash during good times, start buying in during recession, hold and sell at good times and accumulating cash again ...etc You will soon be the next wealthy man like those gurus. Remember, we will only face such cycles a few times over our lifetime and you must take opportunities of it.

About the author

Simon Tan is An Online business Coach & Entrepreneur. You can find more at http://recession-survival.wealthdreamer.com

Article Source: http://www.articlesnatch.com