Growth Stock Investment

Are you interested to try your hands stock trading and to earn huge cash? If so, then its better to go for options investing. Presently, the financial crisis is putting lots of pressure on new stock traders and also the experienced one. Therefore, It’s time for you to put your steps very carefully. Otherwise, you will be drowning in the quick sand and only holding loss.

These days, most investors are choosing growth stock investing in the online world. The Internet has appeared as to be the prime one to sell and buy things suitably. The online medium is one of the best platforms where you can trade and can gain lots of profits. In this way you are not going to handle the items physically and all of your transactions will be done through the Internet.

There are numbers of benefits that traders can draw through online growth stock investing. Growth stocks provides investors good amount of protection to traders when they are in stock trading business. If you have followed the right kind of strategy and made plans, then you will get lots of benefits, more than you invested. But if there is falls in the assets, then don’t worry, just have patience.

Investors those are experienced and know all the tactics, gets lots of benefits even when the sensex goes down. The stock market is unpredictable and no one knows when shocking time will come. If you are a newcomer to this field, then you have to be highly careful and must plan everything appropriately. The field of investing is profitable field and highly competitive. The stock market never cares, whether you are a qualified person or a fresher. If you are a newcomer to stock trading, then put your steps very carefully, take help from someone experienced. Whereas there is always few risk in any kind of the investment, and there are 4 different kinds that generally tend to have stable rates & returns than to invest in up and down things such as stock market. But, if you select to put your own money in the less risky choice, you generally tend to get the lower returns than with the stock. These safer investing options are savings accounts, bonds, CDs, and money market mutual funds. When lifespan is up, bank can give you payout of your first deposit.

Successful Investing Tips

The main object of any investment is to earn income and gain from a profit. Experienced speculators sometimes study market trends before investing. green speculators rely on the recommendation from finance counselors and brokers to steer their investments. Money always grows with time in the exchanges. A successful and profitable investment involves plenty of patience and continuing monitoring of market fluctuations. For an investment to be profit-making, it is critical to take on flexibility and diversification of funds. Investment methods involve regular analysis and reviews of the fiscal market. Newbie investors should find help from monetary counsellors on their portfolio. Long term planning and asset grant are critical to an investment portfolio.

Retirement funds, variable pensions and variable universal life insurance or VUL products provide good ground for investment flexibleness. Another type of investment is Survivorship Variable Universal Life Insurance or SVUL.

The portfolio should be built to help diversify the investments. Diversification : Diversification involves making different investments to gain from more serious returns. This risk-management method of investing helps to diversify the investments in stocks, bonds and money. It doesn't surrender off the chance of loss fully, but it really creates more avenues to make profits.

The financier can invest in a variety of different corporations, foreign instruments and hedge funds. Even if one company declares a loss, the financier still has the other investments to fall back on. Diversification is a good methodology to deal with the danger concerned in the total loss of an investment. Straightforward Approach : It is safe for newbie backers to follow straightforward rules for investing cash. Juvenile financiers shouldn't invest in firms that they aren't extraordinarily sure about and haven't investigated. An easy approach to investment is to stake money in recognized corporations that offer serious returns and show a consistent expansion pattern. It will pay to conduct a research on the company before making an investment. Be Trained : The stock market today trends vary due to many reasons. A backer's judgment shouldn't be primarily based on momentary unsteadiness.

It isn't recommended to try a change in the adopted system mid way. regular research and timely reviews aid in keeping abreast with crucial info of the market. Invest Smartly : Financiers must be knowledgeable and alert all of the time. Backers should be systematic when following an investment methodology. Investments carry the component of risk and so investors are suggested to analyze before investing. It helps to follow the general laws of investment and invest smartly.

Day Trading For Living

This kind of trading works daytime hours only from the instant the market opens at 9am till it closes at 4pm in the afternoon, you can do plenty of trading in that quantity of time. Or perhaps you need to do day trading for livings with your own money, that way if you loose it, then you haven't any one to blame but yourself. it could be a good way to observe your cash grow too. Maybe it's your cup of tea, perhaps not, only you can decide. What's Day Trading? Day trading for a living is when you take a position in the markets with a view of squaring that position before the end of that day.

Day trading for a job mean a trader customarily trades many times each day trying to find fragments of a point to some points per trade by the end of the day she or he will close out all their positions. Unlike speculators, the day trader will hold positions for just a few seconds or mins, and never overnite. What day trading actually means. The meaning trading is basically a misunderstood term. True day trading means not holding on to your stock positions beyond the prevailing trading day, meaning your not suspect to hold on to your stock overnite.

Trading this way is truly the most secure way to do day trading, this way one isn't exposed to the possible losses that may occur if the stock market is closed due to reports that may affect the costs of your stocks. In day trading currency, the term day trading changes a little. Because currencies can be traded 24-hours a day, there can't' truly be any overnite trading. You may have open positions longer than a day with active stop losses than can be turned on at any point. There are some different sorts of day traders out there today, it can basically be subdivided into a number of styles. The goal here is to earn a little per share profit on each exchange while minimizing the chance.

Momentum Traders- This style trading involves identifying and trading stocks that are in a moving pattern in the day, in a scheme to buy such stocks at bottoms and sell at tops. The benefits of day trading as a living is there are no overnite hazards. Because positions are closed before the end of the trading day, news and events that impact on the next trading day's opening costs don't have effects on your customer's portfolio. This increased leverage can raise your customer's profits if used smartly.

Stock Options

Stock options are a way to leverage investment capital for conjecture and to scale back the risk for existing stock positions in your portfolio or to earn an additional riskless income. What is a stock option, exactly? If you haven't traded options before it would a bit overpowering at the start. The idea is far tougher than the praxis. Purchasing a call option is kind of the same as buying the stock itself. Just that you want far less money, just about ten percent what would be wanted to buy the shares. A choice is counted in contracts and not in shares. If you purchase one choice contract then it equals a hundred shares of stocks. Let's assume you would like to buy one thousand shares of Intel, then you either can buy the shares at the market or you purchase 10 Intel contracts at the option exchange with just ten percent of the cash.

The option gives you the legal right to buy one thousand shares but you do not have to buy them in real. Options are straightforward after you understand this easy sense behind them. The other stuff to take care about are the expiry dates and the strike costs. All options expire one day. Till then you could have sold your option with a profit or loss, otherwise it'll expire pointless. You do not actually need to exercise the choice to buy the shares. You'll notice that there are numerous options for a similar stock. Each option expires on a different date with a different strike cost. You may pick the option which fits your plan best. You will also notice that you've got to pay a price for the leverage. Every day the option loses a little bit of its price, no matter if the base stock is moving or not. Complicated option secrets open much better opportunities. You can hedge your open positions or earn an additional earnings as an example.

You may also make cash while the stock isn't moving in any way. That implies that with the simple stock market basic option systems you are most likely losing money almost all of the time. With sophisticated systems you can change sides and join the winners.

Tips For Successful Investing

The principal objective of any investment is to earn money and gain from a profit. Experienced speculators customarily study market trends before investing.

green stockholders rely on the recommendation from finance counsels and brokers to lead their investments. Cash always grows with time in the markets. A successful and profitable investment involves lots of patience and sustained monitoring of market fluctuations. In order for an investment to be worthwhile, it is critical to take on suppleness and diversification of funds.

Listed below are some critical points-to-remember : Pliability : Financiers need to be flexible with their investments. Newbie financiers should find help from fiscal aides on their portfolio. Long-term planning and asset grant are important to a portfolio.

Funds, variable allowances and variable universal life assurance or VUL products provide good ground for investment flexibleness. Another sort of investment is Survivorship Variable Universal life assurance or SVUL. SVUL covers two folk in one life insurance policy. Diversification : Diversification involves making different investments to gain from bigger returns.

This risk-management methodology of investing helps to diversify the investments in stocks, bonds and money. It doesn't surrender off the chance of loss totally, but it creates more avenues for money. The financier can invest in a range of different corporations, foreign stocks and retirement funds. Diversification is a good methodology to combat the chance concerned in the total loss of an investment. Easy Approach : It is safe for amateur financiers to follow straightforward guiding principles for investing money. Juvenile stockholders shouldn't invest in firms that they're not terribly sure about and haven't investigated. A straightforward approach to investment is to stake cash in recognized companies that offer major returns and show a consistent expansion pattern. It can pay to conduct a research on the company before making an investment. Be Trained : Market trends vary due to many reasons. A backer's judgment shouldn't be based primarily on momentary unsteadiness. It's not a good idea to try a change in the adopted methodology mid way. regular research and timely reviews help to keep abreast with vital info of the exchange. Invest Smartly : Stockholders need to be educated and alert all of the time.

Wary long term planning is as critical as being patient. Backers ought to be systematic when following an investment plan. It is similarly vital to understand and monitor the economics and trend of a company. The financier should be updated constantly on business, political and stock related news to learn the political implications which will affect the company in the future. Investments carry the part of risk and so financiers are suggested to research before investing. It helps to follow the general guidelines of investment and invest smartly.

Survival Tips for the Market Shakeout Blues

Stockholders who acquired during the pinnacle of the frothy commodities rally are now panicking or kicking themselves. Neither activity helps a backer or trader think straight. Below are some tips in working with the prevailing stock market shakeout.

First. If you think you invested in the right stock ( s ), then turn off your computer and do something delightful. Exercise is a great stress reliever. The market has started its shakeout.

If you didn't get stopped out, or did not place earlier stops, your best opportunity lays ahead in picking up further shares at a significantly lower cost. Almost all of the experts we've interviewed let us know the following rally should start sometime between late July and Work Day. In a plan to interview the uranium guru James Dines in late May, we were told, Call back in two months. That was a useful clue the markets were less than exciting. Mr. Dines is usually avid to be interviewed, but lately he wasn't.

Two. Do you think the basics which engendered the commodities boom have changed? If they haven't, then the bullishness is only taking a breather.

We don't see any elemental change in the markets. Russia still wants nuclear power, and its oil production could be peaking. China hasn't asserted the end of its nuclear enlargement program. India wants to spend $40 billion on new nuclear reactors. If you are invested in uranium stocks, spot uranium jumped another buck to $45 / pound this past week. Barely the end of the bull market.

Three. If you fret about your investment in one stock or another, then stop watching the ticker and target the company basics. Is the tale still true or has it changed? See seven A, B and C below.

Four. There is an old clich the time to buy is when you feel a bit like dumping everything you own in the class. At the precise moment you wish to sell your whole portfolio of uranium stocks, it could be wiser to add to your holdings. This applies mainly to the retail financier. Almost all of the pros did dump at the top and are now slowly amassing the stock of the nave who waited till the washout to begin to sell off.

Five. Has a major, earth-shattering event occurred? The last bull cycle in uranium stopped with Three Mile Island ( TMI ). The last decent rally in the dear metals markets fell off a cliff after it was found Bre-X Minerals had committed a crime about its gold discovery in Indonesia.

Something heavy and hot always transpires, and it's also far reaching. That's the trigger. As with TMI and Bre-X, those were the 1st shots which launched a later chain reaction to finish those bull markets.

Six. Before pulling the sell trigger, ask : Do I need to give up these shares to a bargain basement hunter, who will make money on my losses?

Seven. Since almost all of you will still panic, please review the following basics for any of the uranium firms you have read about : A ) how much money does the Firm have in the bank? During shakeouts, money is king. Prescient corporations, which finished their financing's in the contemporary and powerful rally, are sitting pretty. They can weather the short term hurricane and are well-oiled to go forward when this correction bottoms and reverses. Those firms are the strongest ones to test out when this correction looks most depressed. B ) Has the management stayed the same? Unless the top fiscal and / or technical folks blew out the door, in the last few weeks, the tale potentially hasn't modified much.

Corporations which built a robust technical team are adaptable and potent. They're going to move forward. C ) Have the properties come up dry? One of why you invested in a uranium company was as it expounded it had pounds in the ground. Some firms have more than others. Some went to the cost and difficulty of completing a Countrywide Instrument 43-101, which independently confirmed the quantity and quality of the uranium resource. If that modified and the company asserted, Sorry, nothing there after all, or articulated, Hey, we were kidding, that's one thing. If you haven't heard that, or read a press release exclaiming that, then the uranium didn't walk away or move onto a rivals property. Its still there. Next time, when the markets are racing higher, and you are feeling like you won the lottery, think about this bit of biblical recommendation. The old joke goes, at what point did Noah build his ark? The answer naturally is : Before it started to rain.

Stabilize Your Current Situation Before You Invest

Before you consider investing in any type of stock market, you should really take a long hard look at your current situation. Investing in the future is a good thing, but clearing up bad – or potentially bad – situations in the present is more important.

Pull your credit report. You should do this once each year. It is important to know what is on your report, and to clear up any negative items on your credit report as soon as possible. If you’ve set aside $25,000 to invest, but you have $25,000 worth of bad credit, you are better off cleaning up the credit first!

Next, look at what you are paying out each month, and get rid of expenses that are not necessary. For instance, high interest credit cards are not necessary. Pay them off and get rid of them. If you have high interest outstanding loans, pay them off as well.

If nothing else, exchange the high interest credit card for one with lower interest and refinance high interest loans with loans that are lower interest. You may have to use some of your investment funds to take care of these matters, but in the long run, you will see that this is the wisest course of action in the stock market today.

Get yourself into good financial shape – and then enhance your financial situation with sound investments.

It doesn’t make sense to start investing funds if your bank balance is always running low or if you are struggling to pay your monthly bills. Your investment dollars will be better spent to rectify adverse financial issues that affect you each day.

While you are in the process of clearing up your present financial situation, make it a point to educate yourself about the various types of investments.

This way, when you are in a financially sound situation, you will be armed with the knowledge that you need to make equally sound investments in your future.

Bonds

There are certain things you must understand about bonds before you start investing in them. Not understanding these things may cause you to purchase the wrong bonds, at the wrong maturity date.

The three most important things that must be considered when purchasing a bond include the par value, the maturity date, and the coupon rate.

The par value of a bond refers to the amount of money you will receive when the bond reaches its maturity date. In other words, you will receive your initial investment back when the bond reaches maturity.

The maturity date is of course the date that the bond will reach its full value. On this date, you will receive your initial investment, plus the interest that your money has earned.

Corporate and State and Local Government bonds can be ‘called’ before they reach their maturity, at which time the corporation or issuing Government will return your initial investment, along with the interest that it has earned thus far. Federal bonds cannot be ‘called.’

The coupon rate is the interest that you will receive when the bond reaches maturity. This number is written as a percentage, and you must use other information to find out what the interest will be. A bond that has a par value of $2000, with a coupon rate of 5% would earn $100 per year until it reaches maturity.

Because bonds are not issued by banks, many people don’t understand how to go about buying one. There are two ways this can be done.

You can use a broker or brokerage firm to make the purchase for you or you can go directly to the Government. If you use a brokerage, you will more than likely be charged a commission fee. If you want to use a broker, shop around for the lowest commissions!

Purchasing directly through the Government isn’t nearly as hard as it once was. There is a program called Treasury Direct which will allow you to purchase bonds and all of your bonds will be held in one account, that you will have easy access to. This will allow you to avoid using a broker or brokerage firm.

How to make a budget

You say you know where your money goes and you don’t need it all written down to keep up with it? I issue you this challenge. Keep track of every penny you spend for one month and I do mean every penny.

You will be shocked at what the itty-bitty expenses add up to. Take the total you spent on just one unnecessary item for the month, multiply it by 12 for months in a year and multiply the result by 5 to represent 5 years.

That is how much you could have saved AND drawn interest on in just five years. That, my friend, is the very reason all of us need a budget.

If we can get control of the small expenses that really don’t matter to the overall scheme of our lives, we can enjoy financial success.

The little things really do count. Cutting what you spend on lunch from five dollars a day to three dollars a day on every work day in a five day work week saves $10 a week… $40 a month… $480 a year… $2400 in five years….plus interest.

See what I mean… it really IS the little things and you still eat lunch everyday AND that was only one place to save money in your daily living without doing without one thing you really need. There are a lot of places to cut expenses if you look for them.

Set some specific long term and short term goals. There are no wrong answers here. If it’s important to you, then it’s important period.

If you want to be able to make a down payment on a house, start a college fund for your kids, start an investment stock market account, buy a sports car, take a vacation to Aruba… anything… then that is your goal and your reason to get a handle on your financial situation now.

Stocks or Mutual Funds?

While some may find that idea of comparing stocks to mutual funds a little bit odd, since mutual funds are often made up of stocks, bonds, or some combination of the two, it is quite necessary to compare the two when it comes to deciding what is best for your financial outlook. Some of the more notable differences will be discussed below in order to help you decide which investment type is more suitable for your financial situation.

When it comes to investing for the everyday man or woman you really can’t beat mutual funds. Stocks carry hefty fees for buying, selling, and transferring that significantly hinder any profits that would otherwise be made from the transaction. In fact, these fees often serve to deter the trading of stocks rather than encouraging it. Perversely, big trading companies offer hefty discounts for their big spenders making the stock market trading game seem even more exclusive by making it easier for those who already have a great deal invested than they make it for the new guy trying to make his way on the market. Mutual funds are much more accessible to those who don’t have massive fortunes available to invest and need to make small steps (such as $100 a month) towards their financial and investment goals.

Mutual funds typically carry less risk than the average stock purchase as well. This happens for many reasons. First of all mutual funds are not generally invested in one sector, industry, or company. For this reason if one of the stocks fails, the proceeds from the other stocks and bonds purchased will help mitigate the loss, making it less noticeable. At the same time, the loss is shared by a large group of people so that even if a slight overall loss is experienced as the result it will be much less noticeable than if the stock purchased was yours and your alone. Finally, the fact that the funds are already diversified to a large degree helps insulate from huge fluctuations in the market such as those seen recently when the sub prime mortgage industry bubble popped leaving many investors ducking for cover.

Share the wealth. Share the risk. Mutual funds offer a sense of community, commonality, and shared risk among those who buy into a specific mutual fund. This is a good thing most of the time as it enables a large group of people to share a much smaller portion of risk than if they were buying stocks of their own volition. The existence of a fund manager means that there is someone “in the know” who is looking after the profit of the fund and that has the success of the fund at heart. This is something that you won’t find when investing stocks. In fact, when it comes to the stock market the only people that really care about how your stocks are performing are those that you pay to care for these things such as your financial advisor, accountant, and/or stockbroker.

Another thing to consider about mutual funds is that they are much easier to use and/or trade than stocks. They are much less expensive to trade as well. You can purchase mutual funds from your local bank, online, and through many online trading companies as well as through many company 401 (k) plans. In other words mutual funds go out of their way to make themselves accessible. The most important thing, really, when it comes to buying mutual funds is that you devote some time to studying the history and performance of the fund you are considering to purchase as well as the fund manager for peace of mind.

As you can see there are a lot of differences between stocks and mutual funds. For small investors mutual funds are often the best route to take. They pose less risk, impose fewer fees, and place owners in a position to accrue steady, if slow, returns on their investments.

Spend Wisely to Save Money

Have you ever noticed that the things you buy every week at the grocery and hardware stores go up a few cents between shopping trips? Not by much… just by a little each week but they continue to creep up and up.

All it takes for the price to jump up by a lot is a little hiccup in the world wide market, note the price of gasoline as it relates to world affairs.

There is a way that we can keep these price increases from impacting our personal finances so much and that is by buying in quantity and finding the best possible prices for the things we use and will continue to use everyday… things that will keep just as well on the shelves in our homes as it does on the shelves at the grocery store or hardware store.

For instance, dog food and cat food costs about 10% less when bought by the case than it does when bought at the single can price and if you wait for close out prices you save a lot more than that.

Set aside some space in your home and make a list of things that you use regularly which will not spoil. Any grain or grain products will need to be stored in airtight containers that rats can’t get into so keep that in mind.

Then set out to find the best prices you can get on quantity purchases of such things as bathroom items and dry and canned food.

You will be surprised at how much money you can save by buying a twenty pound bag of rice as opposed to a one pound bag but don’t forget that it must be kept in a rat proof container.

You can buy some clothing items such as men’s socks and underwear because those styles don’t change, avoid buying children’s and women’s clothing, those styles change and sizes change too drastically.

Try to acquire and keep a two year supply of these items and you can save hundreds of dollars.

Online Stock Trading

The invention of the Internet has brought about many changes in the way that we conduct our lives and our personal business. We can pay our bills online, shop online, bank online, and even date online!

We can even buy and sell stocks online. Traders love having the ability to look at their accounts whenever they want to, and brokers like having the ability to take orders over the Internet, as opposed to the telephone.

Most brokers and brokerage houses now offer online trading to their clients. Another great thing about stock trading online is that fees and commissions are often lower. While online trading is great, there are some drawbacks.

If you are new to investing, having the ability to actually speak with a broker can be quite beneficial. If you aren’t stock market savvy, online trading may be a dangerous thing for you. If this is the case, make sure that you learn as much as you can about trading stocks before you start trading online.

You should also be aware that you don’t have a computer with Internet access attached to you. You won’t always have the ability to get online to make a trade. You need to be sure that you can call and speak with a broker if this is the case, using the online broker. This is true whether you are an advanced trader or a beginner.

It is also a good idea to go with an online brokerage company that has been around for a while. You won’t find one that has been in business for fifty years of course, but you can find a company that has been in business that long and now offers online trading.

Again, online trading is a beautiful thing – but it isn’t for everyone. Think carefully before you decide to do your trading online, and make sure that you really know what you are doing!

Stock Market Gambling

Are you addicted to gambling? How about taking risks? There are many who are literally addicted to gambling and the stock market is their drug of choice. There are many options available for their gambling pleasure and the tables, it seems, are always open with various markets around the world opening up to US money and the prevalence of Internet trading venues that are available to the average investor through nothing more sophisticated than a computer and a modem.

Day trading is a particular draw for those who are addicted to gambling through trading stocks. It provides the ups and downs very similar to the roll of the dice or the ringing of the slot machines and instant hits and misses. It can even be addictive for those who have never set foot in a casino. Of course this type of investing isn't the only investing that is very much like gambling. Any high-risk investment is going to bear some similarities, especially those that offer high payouts to those who do succeed on occasion.

The problem is that that addictive gambling can be devastating to friends, family, and finances. If you suspect that you or someone you love has a gambling problem you need to either get help yourself or encourage them to get help. There are many ways that this can be accomplished and anonymous help can be found online. Day traders have gained so much notoriety as potential gambling addicts that gamblers anonymous has begun a support group specifically for those who are addicted to gambling via day trader trading.

If you have the personality that is easily addicted to things such as lottery tickets, slot machines, chocolate candy bars, etc. this doesn't mean that you can't ever trade on the stock market it just means that it might be a good idea to avoid some of the higher risk trading and stick with more slow and steady options such as mutual funds, CDs, and the like. Your rewards are likely to be better over time and you aren't likely to experience the ups and downs that go along with activities that closely resemble gambling.

An addiction to gambling is a serious problem that can ruin a family financially. It is imperative that you get the help you need if you discover that you have a gambling problem. The first suggestion is to close up all stock market accounts that could lead to temptation. Removing temptation is always a great first step when fighting any addiction. You also need to seek support. There are many groups around the country such as gambler's anonymous that can provide you a close knit support group whenever temptation strikes. If your local chapter has a group that is designed specifically for those who are addicted to gambling through day stock trading that might prove to be the best choice to help you on the road to recovery from your addiction.

If you have been addicted to gambling in the past you should also avoid the temptation that day trading may present. Addictions may be overcome but they are never cured and temptation for many can prove to be the fatal downfall. Do not allow your gambling addiction to take control of your life once again by entering into the world of day trading after working so hard to overcome your addiction in the first place and build a life after the sometimes devastating effects that addictions can bring.

Gambling is nothing new to the world and there is nothing wrong with having the sort of personality that likes to take a gamble on occasion. In fact, there needs to be a little bit of that personality type in every day trader. It's when the gambling becomes a problem and takes over your life and your ability to make rational decisions about the money and the risks you are taking that it crosses the line between gambling and a gambling problem that borders on or is a gambling addiction. If you have crossed that line, get help today.

How Much Money To Invest?

Many first time investors think that they should invest all of their savings. This isn’t necessarily true. To determine how much money you should invest, you must first determine how much you actually can afford to invest, and what your financial goals are.

First, let’s take a look at how much money you can currently afford to invest. Do you have savings that you can use? If so, great! However, you don’t want to cut yourself short when you tie your money up in an investment. What were your savings originally for?

It is important to keep three to six months of living expenses in a readily accessible savings account – don’t invest that money! Don’t invest any money that you may need to lay your hands on in a hurry in the future.

So, begin by determining how much of your savings should remain in your savings account, and how much can be used for investments. Unless you have funds from another source, such as an inheritance that you’ve recently received, this will probably be all that you currently have to invest.

Next, determine how much you can add to your investments in the future. If you are employed, you will continue to receive an income, and you can plan to use a portion of that income to build your investment portfolio over time. Speak with a qualified financial planner to set up a budget and determine how much of your future income you will be able to invest.

With the help of a financial planner, you can be sure that you are not investing more than you should – or less than you should in order to reach your investment goals.

For many types of investments, a certain initial investment amount will be required. Hopefully, you’ve done your investment research, and you have found an investment that will prove to be sound. If this is the case, you probably already know what the required initial investment is.

If the money that you have available for investments does not meet the required initial investment, you may have to look at other investments. Never borrow money to invest, and never use money that you have not set aside for investing!

How to Save Money in Tough Times

When our financial picture is good, we often do not worry about saving money. But when things take a turn for the worse, we realize the error of our ways. Had we found ways to spend less and save more, we might not have to worry so much.

When faced with reduced income and/or rising prices, saving money is not optional. It is something we must do to survive. But if youíve never pinched pennies before, itís easier said than done. Here are five ways you can save money when times are tough.

1. Shop around. Comparing prices on groceries, clothing and other tangibles is a good place to start. But you can also save a substantial amount of money by comparing prices on such things as insurance, phone service and internet access. Call around or check prices online to find the best deals.

2. Clip those coupons. Some people shudder at the thought of using coupons, or they feel that they do not make much of a difference. But those cents (and sometimes dollars) off can really add up over time. And coupons arenít just for groceries any more. You can find them for everything from dinners at your favorite restaurant to movie rentals.

3. Do not buy when you can borrow. If the outside of your house needs cleaning, your first thought might be to go out and buy a pressure washer. But if your neighbor has one, he might be willing to loan it to you, saving you a big chunk of change. If youíre willing to loan stuff to others, they will often be happy to return the favor, saving you both money.

4. Cut your transportation expenses. If possible, using public transportation is usually the cheapest way to get from Point A to Point B. If that is not an option, carpooling is the next best thing. Taking turns driving to work with a co-worker will be of benefit to both of you. And there is no reason to stop there. Share rides to the store with neighbors, take turns with a fellow soccer mom driving the kids to practice, and take one vehicle when going out to eat with friends instead of driving separately.

5. Be self-sufficient. Anything you can create at home will almost certainly be cheaper than the same thing bought from a store. So try your hand at sewing your own clothing. Learn to bake bread from scratch. Plant a garden and learn how to preserve the surplus for later use. Youíll certainly save money, and you might find an enjoyable new hobby.

Saving money is not completely effortless, but it is not as hard as you might think. Some simple changes in lifestyle can leave us with more money each month. During hard times, saving money can help keep us afloat. And when our situation improves, it can help us save up money for emergencies, retirement and other important causes.

The Importance of Financial Communication

Studies have shown that money is one of the most frequents points of contention between married couples. But most of us do not need a scientific study to tell us that. Whether you are pinching every penny for all it is worth or have more money than you know what to do with, sharing finances with someone else is bound to cause some disagreements.

Even the most compatible couples often have different ideas of how money should be handled. But that does not mean they should call it quits if they canít see eye to eye on financial issues. In many cases, it just means that they need to work on communication and compromise.

In many (if not most) couples, one is appointed as the financial manager of the household. This may happen after much discussion, or it may just happen without a conscious decision being made. The person managing the finances usually pays the bills, makes banking decisions and manages debts as he or she sees fit. This is not necessarily a bad thing in itself, but it tends to separate the other partner from the financial picture. And when he or she does get a glimpse of it, if it is not as good as imagined, it can cause problems.

Thatís why it is so important for both partners to have a hand in the finances. If one does not want to pay bills and such, that is fine, but he should be kept in the loop about everything. If necessary, consider having a weekly meeting in which you discuss the state of your finances. This will eliminate unpleasant surprises and the arguments they may cause.

Keep Track of Spending

A frequent source of friction in a marriage or domestic partnership is spending. One partner might strive to be as frugal as possible so that more money can be saved or used to reduce debt, while the other feels that buying something she wants every now and then is fine. Instead of trying to work out a compromise, they might hide money or spending to avoid confrontation.

But when such lies are discovered, they are bound to cause serious problems. That is why it is crucial to be completely honest about not only your own spending, but your expectations for your partner's spending. You may not see eye to eye, but being completely honest is the only way to truly know the state of your finances. It enables you to make a budget as well, and this can be a helpful tool in working out such differences.

When it comes to finances in a relationship, clear, honest communication is a must. Sharing your goals and ideas on how to achieve them will help you approach money matters as a team rather than fighting over them. Even if you have very different views on financial matters, itís almost always possible to find a middle ground that both of you can live with.

Stock Market Tips

Planning to go into stock market investment? Here are some general tips to live by.

1. Understand the basics of economics.

The stock market follows the laws of economics, particularly the law of supply and demand. If there is a greater demand for the stocks of a particular company, the price of its stocks will go up accordingly. On the other hand, if there are more stocks available for selling (more sellers) than stock buyers, the unit price of that companyís stocks will go down.

2. Study your prospective company/ies.

Read up on the company's profile: products, services, operations, and track record in the business. This is important to assess the company's stability and capability to deliver its promises and meet its profit targets.

3. Choose companies that are more likely to stay.

With so many existing companies in the stock market today, choosing becomes a big challenge for beginners. Government-owned companies and businesses are relatively stable, unless there is a political revolution in the horizon. Telecommunications and gasoline companies are also stable and profitable since the demand for these products and services is constant. Although IT companies are the fastest growing in the market today, be careful because there are so many of them that it checking on their profiles could be very taxing. Choose IT companies that have proven track records of profitability and stability of at least 10 years.

4. Always read and watch the news.

Dealing with the stock market is not a guessing game. Sound decisions and good intuition are results of constantly learning about the local and global political and economic happenings. Give particular attention to the industry where your company belongs. Even stable companies can suddenly go bankrupt or experience a big blow that can bring them down. Remember Enron?

5. Spread your investments.

Avoid investing in just one company. If all your stocks are concentrated to one company, the chance for loses is also greater. Spread them out so that earning investments can cushion those investments that earn less.

6. Do not rely solely on stock brokers.

Do your homework. Remember, the stock broker is gambling with your money. When an investor does not understand how the stock market works, he/she becomes vulnerable to scrupulous brokers.

7. Do not be greedy.

Although stock market investment is all about profits, becoming greedy will make an investor lose his/her better senses. He/She might suddenly forget to check on economic rumors and decide right away to buy or sell thinking that he/she would make big profits by doing so.

Seven Ways of Reducing Childcare Costs

With the cost of just about everything on the rise these days, families have begun an earnest search for less expensive childcare. This is one of the major expenses parents face when pay day rolls around. Depending on the family dynamics, it is often a case of one parent's salary being used primarily to pay for childcare expenses. Let's look at some alternatives there are to reduce those high childcare costs.

1. Share and Swap Care - Get together with friends to schedule alternating childcare among your group. If possible, working alternating schedules could permit a schedule convenient for everyone. However, if you all work similar hours, you could consider hiring one childcare provider who would be willing to care for all of the children, while splitting the cost.

2. Nanny-mom - You may find someone willing to come to your home and be a nanny for your children, but she has a child of her own who needs her attention. By allowing her to bring her child along while she cares for yours, you are not only getting childcare for your little one, but you can pay her less as she doesnít need to pay for her own childcare expenses.

3. Staggered Work Hours - You and your spouse can try offsetting your work hours. Instead of both of you working 9am - 5pm, perhaps one could work 7am - 3pm to cut the number of hours your children need to be in daycare or with the sitter.

4. Office Daycares - There are many companies who are now providing employees with daycare facilities in the same building as their offices. These are normally available either at a largely reduced rate, or as a benefit offered to enable longer work days from their employees.

5. Telecommuting - Many companies are offering the option of telecommuting to their employees. This enables you to work from the comfort of your own home, while not worrying about childcare. Any appointments or meetings which require your attendance could most likely be scheduled for a time when your significant other is available to care for the children. If not, at least you will have far less to pay for a babysitter if you only need one on occasion.

6. Family help - Perhaps grandparents or other relatives would be willing to care for your children while you are at work. Although grandparents will often tend to do this for free, you may want to take them out for dinner on a regular basis or some other activity or gift to show your appreciation for their generosity.

7. Start a new job from home - There are many ways you can do this, and not only does it remove the necessity of childcare, it can also get you some potential tax breaks. If this doesn't sound like something you would be interested in doing right now, there is another alternative. Sit down with your spouse and calculate carefully both incomes and compare them to your monthly expenses. Then recalculate what you could save if one person were to stay home instead of working. Be sure to include not only childcare costs, but clothing allowances, travel expenses as well as the change in income tax brackets. You may just find the second salary isn't as much of a necessity.

The Worst Stock Market You Can Make

Investing in the stock market is probably one of the riskiest ventures you can delve into with your money.

It is also one of the most profitable undertakings you may make at the same time.

So itís only normal that you may have reservations about actually trying your luck in the stock market.

The best thing to do is to get a stockbroker to handle your stocks initially. He will be able to give you professional and dependable stock market report, tips and advice.

It is also a good idea to actually to find a friend or an acquaintance who already has some experience with dabbling in the stock market. They will be able to give you stock tips and advice for free.

One of these advices is which is the worst stock to put your money in.

One of the worst stock moves you can make is with variable annuities using the premium of your insurance.

A variable annuity is an insurance contract that allows you to invest your premium in mutual fund-like investments.

This sounds good in paper, but if you look at it a little harder, youíll find that they are bad investments in the long run for the following reason:

I Tax cuts. Ordinary investments in stocks and mutual funds qualify for low capital gains treatments, thus smaller taxes. Your gains from investing your premium, on the other hand, get taxed as income as soon as you withdraw the money.

II Early withdrawal penalties. Insurance plans are designed for retirement. Taking out money from your premium entails a certain amount of penalty from both the insurance company as well as the government. So if you withdraw your profits, you will be penalized.

III Death benefit. If your stocks are down upon your death, your beneficiaries can get as much as the investments you put in. Unfortunately, if your stocks are up, they get taxed as a regular income.

IV Costs. Annuities with insurance features are actually more expensive than ordinary mutual funds. The more insurance features your annuity has, the more annual feels are heaped against it, which naturally eats up your profits.

There are other stock market investments that are not a good choice to put your money in.

There are specific times as well as when to not to make an investment. Times of natural calamity may drive prices of stocks down but there are no insurance these would recover to make a good profit.

As always, it is best to diversify where and when you put your money in.

Five Money-Saving Ideas for Family Fun

Money isn't always readily available for such things as expensive outings and activities for you and your family. With the uncertainty of the economy these days, more and more families are searching for free, frugal and money-saving ideas in order to keep the family having fun together without breaking the bank. How about trying some of these options to keep your family activities happening without the costly aspect some choices may have.

1) Your local community may have a Parks and Recreation website or booklet available to residents. These usually include a variety of activities in different price ranges, from free to inexpensive as well as those with a higher fee. There are quite often long lists of activities which fall into the free or inexpensive range, such as community walks through area parks and trails, family cycling days or even free family days at the local indoor pool.

2) Plan regular family visits to your local library. With a little bit of planning ahead of time, each visit can be focused on a particular subject such as traditions from around the world, new crafts you can learn as a family or any other topic which can be learned about as a family. Check out books related to your choices to bring home so you can experience different cultures together. Most libraries also have DVDs or videos you can borrow for free or a very small fee. They may have some which can assist you with this family project.

3) Occasionally your community may provide a fundraising concert or performance in a park or community center. Frequently the entry fee will be a low price for an entire family, or possibly even a donation of canned goods for the local food bank. For this small donation your family could enjoy an evening of music from local talent, or benefit from the amusement of a community fair. Pack your own refreshments to bring along and you have a full day of fun for the price of a few cans of imperishable goods.

4) Hold family read-aloud days when the weather isn't being cooperative. Rainy days, a good book and being snuggled together under a warm blanket with popcorn for a snack is a great way to bond as a family while waiting for nicer weather when you can do something else outdoors.

5) Visit a museum or zoo on family days or half-price days. What can be more fun than learning new things together while visiting a new museum exhibit, or trying to imitate the faces the monkeys at the zoo are making? Many libraries now allow you to borrow or rent passes to these locations for a very minimal price. They include admission for the whole family, and are normally valid for more than one museum or activity in your area.

If family funds are limited, it doesn't necessarily mean fun and activities need to be limited as well. All it takes is a little bit of planning, and there is a wealth of activities you and your family can partake in while sticking to a frugal or free rule. The most important aspect of it all is spending time together, not how much or how little you spend while you do it.

Don't Let Your Money Retire

Retirement can be a joyful time of life. You get to leave the daily grind and spend more time doing the things you love with the people you care about. If you've saved up enough money to live comfortably, you can live a fulfilling, carefree life.

If you did a particularly good job of retirement planning, you may have enough money in savings to carry you through for many years to come. Even so, it's wise to keep your money working for you. You'll need to keep up with inflation, and if you live a particularly long life, you could run out of funds. And then there's the chance that you could incur unexpected expenses such as long-term care.

So instead of putting the brakes on your investing, it's best to continue as though you have yet to retire. If you have adequate retirement savings, you'll only be using a portion of your money each year. There's no reason that the rest of your money shouldn't be earning a return for you.

The Best Investments for Retirees

There are many types of investments available, each with its own pros and cons. To find the best investment for your situation, you need to consider your tolerance for risk and the need for access to your money.

You should be able to put most of your retirement funds into fairly long-term investments. If you want to take on very little risk while keeping up with inflation, CDs are a good option. Money market funds and mutual funds are also low-risk. Stocks and bonds are riskier, but if chosen wisely and managed responsibly, they can net larger returns.

Annuities are also popular investments among retirees. Life annuities require the annuitant to pay a premium in exchange for payouts made at regular intervals for the rest of his life. This provides guaranteed income, eliminating the danger of outliving one's savings. There are also joint annuities that pay out until the last of two people dies, and guaranteed term annuities that pay out for a specified period of time, with payments going to a beneficiary if the annuitant dies.

For money that you want easy access to, a money market account is a good place to keep it. These accounts earn more interest than your average savings account, yet they allow for quick and easy withdrawal of funds. But keeping your entire nest egg in such an account is unwise, because it could be earning much more with other investments.

Retirement should be a time in your life where money is not a major concern. Unfortunately, it doesn't always work that way. By keeping your money at work for you, you can keep your finances in good order for years to come and have some left over for your heirs.

Five Tips for Dealing with Debt Collection Agencies

When debt collectors start calling, we might consider throwing the phone out the window. But that's not the best way to deal with collection efforts. If you ignore them, they will keep calling for months or even years on end. And no one wants to live in fear every time the phone rings.

Debt collectors are rarely as unreasonable as we imagine them to be. They want to collect the money they're owed, but they realize that they are more likely to succeed if they work with us. And the law prohibits them from threatening or harassing us. Here are five tips for effectively dealing with collectors:

1. Know your rights. It pays to familiarize yourself with the Fair Debt Collection Practices Act, which protects consumers from unscrupulous collection practices. If at any time you feel that your rights have been violated, you can report the incident to the Federal Trade Commission or file a lawsuit to collect damages.

2. Be honest. Let the collector know if there are extenuating circumstances that have caused you to fall behind or stop making payments altogether. This won't stop them from trying to collect the debt, but it could buy you some time and make it more likely that they will work with you to get things resolved in a way that is acceptable to both parties.

3. Know how much you can afford to pay each month, and don't let them convince you to pay more than that. Even if they take all of your obligations into consideration and tell you that you should be able to pay a certain amount, you may not be able to pay that much realistically. If the collector insists on not accepting less than a certain amount, you may want to seek legal advice.

4. Take notes. Each time you speak to the collection agent, write down the highlights of the conversation along with the date and time of the call. Keep these notes for future reference, and if the collector contradicts himself, you'll have your notes to refer to. These notes will also be helpful if you end up filing a complaint or lawsuit.

5. If you reach an agreement, stick to it. As long as you keep up your end of the bargain, the collection agency can make no further efforts. If you find that you won't be able to make a payment on time, contact the debt collector immediately and let him know when you will be able to pay.

No one looks forward to dealing with a collection agency. But if you are honest and reasonable, it's rarely as bad as you think it will be. In most cases, you can work out a mutually agreeable arrangement, get your debt paid off and get on with your life.

Ten Ways of Planning and Controlling Your Income and Expenditures

Budgeting is important for every household. It's not just for those who are barely scraping by and must make sure there's enough money to pay the bills each month. Even if you don't have to watch every penny, it's important to know where your money is going and make sure you're putting enough in savings for retirement, emergencies and other needs.

In theory, budgeting is pretty simple. But in practice, it can get complicated. Here are ten tips that can help you gain control of your money and pay off your debts.

1. For the first month of your budgeting, come up with your best estimate of spending. Breaking it down into categories such as entertainment, transportation, groceries and such will help. These expenses are more difficult to predict than fixed expenses such as mortgage and insurance payments, so use any receipts you have and estimate the rest.

2. Keep close track of expenses. The most accurate way to do so is to keep all of your receipts. But if you use a debit card for most of your spending, your bank records may suffice.

3. When the month is over, add up your expenses and see how close your estimates were. This will help you get a more realistic idea of your spending habits. Revise your budget with the new numbers, and see where you can cut back.

4. Don't overlook the little things. Small amounts of money add up quickly if you spend them every day or several times a week. And these small expenses are often the easiest to live without, so eliminating a few of them can make a big difference in your budget without leaving you feeling deprived.

5. Give everyone an allowance. Each family member should get a reasonable amount of money to spend on everyday needs each week. For younger children, a parent can manage the money. By allocating a certain amount to each person, you can encourage frugality while keeping expenses manageable.

6. Set aside a certain amount for savings each time you get paid, and make sure it goes into savings before any discretionary spending takes place. This way you won't have to worry about coming up short of your savings goal at the end of the month.

7. Use your raises wisely. Resist the urge to increase your spending just because you have more money coming in each month. Instead, consider putting the amount of the raise into savings or use it to increase your debt payments. You won't miss it, and this will help you improve your financial future.

8. Avoid overspending when you get a bonus or tax refund. Indulge a little if you feel the need, but try to put most of the extra money toward more noble causes (such as paying off your credit card debt).

9. Become a frugal shopper. Clip coupons and check flyers for sales at your local stores. You can save a great deal on groceries, clothing, hardware and other items this way.

10. When possible, do things yourself instead of paying someone else to do them. We all have unique talents, and putting them to use can save us money. Maybe you can do your own repairs around the house, change the oil in your car, or sew clothes for the family instead of buying them off the rack. All of these things can save you money and leave more in the budget for other expenses and savings.

Disability Insurance : What It Covers and When to Get It

Disability insurance is an income replacement insurance policy which is dispensed to you if you are injured or too ill to return to work. It's the only insurance available which keeps all other assets protected. Without insuring your income, any investments and/or insurance you have been contributing to for possibly many years will no longer have a source of funding for their upkeep. There is potentially a risk you could lose not only your home, but your car, insurance plans and any ability to plan or fund your retirement.

From accumulating assets to long-term financial plans, you have worked hard as you have gone through life. Have you given any thought to how you are going to keep these assets as well as your long-term plans if your income source is no more? Any disability programs offered from the government don't necessarily get awarded to everyone in the event of disability. With strict requirements, averages of one third of all cases are approved. With the ability to structure, your disability insurance covers either partial or total disabilities for either short or long term. It's essential to make sure you have the right coverage just in case.

Prices for disability insurance can vary greatly. Unless you have the opportunity to get insured through an employer, it could get pricey. You can estimate 1 to 3 percent of your annual income. This cost will depend on several factors, including your choice of policy, your type of employment, your health condition, and your age. Whether or not you smoke is also a factor.

If you don't need immediate payments of your disability insurance following a disability (due to reception of workers compensation or employee benefits), you could save quite a bit of money on your premium by choosing to wait for reception of your disability payments.

You can choose either a traditional fixed-premium policy, or one similar to term life insurance plans. These are called annually renewable disability income policies. This type provides you with affordable options, with premiums rising in price minimally each year. With either of these plans, you determine the monthly payment in order to receive appropriate insurance - typically an amount around 60 percent of your earnings. Following this, if you become disabled, those payments will be returned to you.

When considering the purchase of a disability policy or when reviewing a current one, the main objective is to adequately cover your monthly expenses. Some individuals choose to insure their entire income, even though it may be higher than their respective expenses. This ensures there is enough money being received to cover your assets.

A good policy will always take into consideration inflation and its impact on your monthly benefit on a long-term basis. Always verify the possibility of adding an inflation rider to your policy.

There comes a time to realize that not all disabilities are equal. The majority are partial disabilities which decrease the amount of time you are able to work, but allow you to work at least part time. A perfect example of this is Multiple Sclerosis, which is a disease of many faces. Always look for a residual disability rider to ensure a partial benefit will be paid if you are partially disabled.

One way some insurance companies save money on policies is through their definition of disability. If your policy reads "any occupation" this could result in you having to return to any position, even if it's not your own. A policy stating your own occupations is something you need to look for when choosing an insurance plan.

There are a wide range of questions and verifications which need to be addressed before committing to any one particular disability insurance policy. If you plan for this potential need ahead of time, you can shop around for the policy which best fits your needs, as well as your pocketbook.

Debts and Relationships: Co-Signing Loans

For those with flawed or non-existent credit records, it can be quite difficult to borrow money. In many cases, the only way for them to do so is to obtain a co-signer. This allows the lender the opportunity to collect from someone with a better credit record if the borrower defaults.

If you have good credit, you may be asked to co-sign for a loan at some point. Perhaps your child needs to borrow money to buy her own car but has never had any credit in her name. Or maybe your cousin is recently divorced and needs to borrow money to make a new start. Whatever the reason may be, it's important to know the potential consequences of co-signing for a loan before you go through with it.

Co-signing subjects you to a number of risks, including the following:

* If the borrower misses payments, your credit could be adversely affected. Even though you're not the one making the payments, you're still on the hook for them. And in most cases, the lender is not required to notify a co-signer of missed payments. Your credit rating could be taking a nosedive through no fault of your own and without your knowledge.

* The lender is not required to attempt to collect the debt from the borrower before going after the co-signer. The bills and late notices may come to the borrower, but if there is a default, the co-signer may be the one who starts receiving calls from a collection agency. Lenders know that they are more likely to receive payment from someone with good credit, so use their resources to pursue the co-signer rather than going after someone who is less likely to pay up.

* Co-signing for a loan can prevent you from borrowing money for yourself. Even if the borrower makes every payment on time, the outstanding balance is displayed on your credit report. This raises your debt-to-income ratio, and could result in denial of credit when you need it.

* If the borrower fails to repay his debt and you can't pay it for him, you could lose your property. The lender could take any collateral that you put up for the loan and sell it. Even if property obtained with the loan is repossessed, you could still be liable for the difference between the selling price and the amount owed. If you don't pay, the lender may be able to put a lien on your home or garnish your wages.

Co-signing a loan for anyone is risky business. Lenders require a co-signer because they do not believe that the borrower will repay the loan, and in many cases, they're right. Before you sign on the dotted line, think about the ramifications. You might be helping someone you care about in the short term, but it could seriously damage your relationship (and your credit record) in the long term.

The Importance of Checking Credit Card Bills

Paying bills is something that no one looks forward to doing. It's one of those things we just want to get out of the way. So we often look at how much is owed, write a check or pay online, and forget about it. But when it comes to credit card bills, that's not such a good strategy.

Credit card statements detail each and every charge we've made since the last statement. That doesn't make for a very exciting read, but it is an important one. If you don't carefully go over the charges on your bill, you could end up paying more than you actually owe.

Here are some of the things to look for on your statements:

* Watch for charges that you didn't authorize. If your card is not with you at all times, someone could have used it without your permission. And even if you haven't lost your card, someone could have fraudulently obtained and used your card number.

* Compare each charge with the corresponding receipt. Mistakes happen, and you could have been charged an incorrect amount.

* Look for double charges. Equipment malfunctions or cashier errors can cause a charge to go through twice. Unscrupulous employees or companies may also make duplicate charges on purpose.

* Review charges imposed by the creditor, such as interest, fees and credit insurance. If you see anything suspicious, check the cardholder agreement to make sure the charge is legitimate.

If You Find a Mistake

When you find an error on your credit card statement, it's important to report it quickly. If it's the result of fraud, notifying the creditor can prevent further misuse. And in any case, cardholders must act within a reasonable amount of time in order to be protected by law.

The Fair Credit Billing Act (FCBA) states that cardholders must report billing errors in writing within 60 days from the date the first statement containing said error was mailed. If they do so, the creditor must either correct the mistake or prove that the charge is legitimate within two billing cycles. If the charges were not authorized by the cardholder, he may be held liable for no more than the first $50.

A phone call to your creditor can be helpful if you have questions about a particular charge. And in the case of unauthorized charges, a customer service representative can tell you if other charges have been made since the statement was prepared. But if there is an error, notifying the card issuer in writing is a must. Otherwise, you may have no legal recourse if they refuse to make a correction.

Checking your credit card bill doesn't take long. If you keep your receipts organized, you can verify the charges in just a few minutes. And those few minutes could potentially save you a great deal of money.

Frugal Living Does Not Equal Depriving Yourself

In today's materialistic society, it seems like everyone tries to outdo everyone else. If Joe buys a 42-inch TV, John goes out and buys a 60-inch model. And the irony of it all is that neither one of them even watches much television!

Because of this way of thinking, those who try to live frugally have often been viewed as stingy. People often think that frugal shoppers are depriving themselves and their families of the finer things in life. What they don't realize is that frugality is not about never buying anything except for the essentials. It's about getting more out of your money so you can have the things you need and some things you want on a smaller budget.

Those who do not subscribe to the frugal school of thought often work long hours and acquire truckloads of debt to support their spending habits. They may have designer clothing, shiny new cars and all the latest electronics, but are they truly happy? Frequently, they're not. If they're working lots of overtime, they don't have the time to truly enjoy those things (much less priceless time with the ones they love). If they're running up lots of debt, they probably spend a lot of time dodging bill collectors and worrying about how they will ever pay it back.

Living frugally affords a more laid back approach to life. When you're not concerned about having the newest thing from the hottest designer straight off the shelves, you can dress fashionably at a minimal investment. Instead of paying a premium for that designer label, you can find a nearly identical item at a discount store or thrift shop for next to nothing. You don't buy the latest gadgets just so you can be the first one on your block to have them, but you purchase electronics that you know you will use while they're on sale.

Frugal shoppers also strive to save money on essentials so there's more left over for savings and wants. They scour the sale papers to find good deals at the grocery stores, and clip coupons to save even more. They turn off the lights when leaving a room and hang clothes out to dry to lower their electric bills. And they run all of their errands in one day to conserve gas. These measures alone can add up to significant savings each month.

Frugality doesn't mean keeping your expenses to a bare minimum. It means stretching your dollar as far as it will go. While frugal shoppers may not have the newest and most expensive things, they can buy much more with a given amount of money than the average consumer. For the price one might pay for the latest cell phone, they can buy groceries, buy the kids school clothes, pay a couple of bills and have enough left over to treat the family to a movie.

Ten Ideas for DIY Savings Around the House

Unless you've just moved into a brand new house, home improvement is a never-ending job. When one project is complete, we always find something else that needs work. The improvements add value to our homes, but they come with a hefty price tag.

Many homeowners feel that they must have a professional come in for each job. But if you're willing to roll up your sleeves and get your hands dirty, you can make many improvements on your own. And since you won't have to pay for labor, you could save hundreds to thousands of dollars on each project.

Here are some common home improvements that we can often do ourselves.

1. Painting - You don't have to be an artist to paint the inside or outside of a house. With the right materials, just about anyone can do it. If you have no idea where to start, enlist the help of a friend or family member who has painted his own home. And if you're really apprehensive, start with one wall to prove to yourself that you can do it.

2. Wallpapering - Wallpapering isn't as simple as pasting paper onto the wall, but it's not terribly difficult, either. You'll need to prepare the wall, do some measuring and cutting and carefully paste it on so that is even and free of bubbles. It takes some time and patience, but the end result is well worth it.

3. Air conditioning - Installing an air conditioner is easy enough that most homeowners do not need outside assistance. If you buy the right size, it will fit right into an existing window. All you'll need to do is install some brackets, slide the unit in, make sure that it can drain to the outside of your house and caulk around it.

4. Flooring - There are many types of flooring available, and some are easier to install than others. Stick-on tile is cheap and can give a room a new look in no time, but it's not very durable. Other types of tile are more durable but take longer to install. Carpeting and hardwood flooring are a bit more complicated. Laminate is a popular choice, because it offers the look of hardwood but is easier to install and care for.

5. Insulation - A properly insulated home offers greater energy efficiency. While insulation of exterior walls is best left to a qualified contractor, homeowners can often successfully insulate attics and crawl spaces on their own. DIY books and websites offer advice on how to properly install insulation.

6. Water heaters - If your water heater has seen better days, you can probably replace it yourself. With the instruction manual and a few tools, installing a water heater is a cinch. Consider an energy-efficient model and save on your electric bill.

7. Plumbing - Plumbers have to go to school to become certified, but there are some simple plumbing tasks that the average Joe can handle. These include installing faucets, taking drain pipes apart to retrieve lost items, and installing toilet kits.

8. Accents - Small details can make a big difference in your home, and you can usually implement them with little guidance. Try changing your cabinet knobs, adding baseboards or changing your crown molding.

9. Siding - Replacing your home's siding can give it a whole new look. Vinyl siding is easy to install with the right tools, and it's very easy to maintain.

10. Decks - Building a deck is no small task. But if you know a little about construction, you can do it on your own. You will, however, need a building permit, and you'll have to adhere to building codes.

Payment Protection Insurance: Pros and Cons!

According to one statistic, payment protection insurance claims have risen to 118% in the US alone. This is due, in large part, to the recession and high unemployment figures. What is payment protection insurance or PPI?

Basically, it provides a buffer for anyone who has become ill or unemployed by protecting loan payments and preventing the possibility of default. PPI can be purchased for car loans, personal loans, credit cards, and mortgages.

Payment protection insurance allows for short-term coverage, usually from one to two years. The standard policy is available to anyone that is employed full time or works part time for at least 16 hours a week, regardless of age, gender or occupation. This policy is usually available at the time a loan is obtained and requires a monthly payment commensurate with the amount of protection you require.

The cost of a PPI policy varies depending upon the state in which you live, the amount of coverage, and the provider you choose. For example, one insurance provider offers a PPI policy up to $70,000. The cost is 5.5 cents per $100 loan balance for a single, and 8.8 cents per $100 for a couple.

However, there is one disadvantage in purchasing a PPI policy from a bank or other lender and that is they may charge higher premiums. In fact, in some cases, lenders may automatically add the cost of the insurance to the loan without your knowledge. This results in your paying interest not only on the PPI but on the loan as well.

In addition, there are certain eligibility requirements. Some providers may not offer a PPI to retirees, those who are self-employed, or to part-time workers. That is why it is recommended that you research many insurance providers to find the most affordable and effective PPI policy that suits your specific needs. One example given is that if you are not working, you can opt to select a PPI policy that only covers illness or accidents.

On the other hand, there is a unique advantage in obtaining a PPI. It does not adversely affect your FICO score because the monthly payments are being made through the insurance provider without interruption.

There are different policies available through providers, and it is recommended that you check the exclusions and peruse the fine print so that you are aware of all aspects of the policy.

Financial Stress = Bad Decisions

Stress can cloud judgment for the best of us. When we're worried or upset, we just can't think as clearly as when we're calm and happy. And when it comes to financial stress, the consequences of bad decisions can be serious.

Anything that adversely affects our income or expenses can cause financial stress. Job loss is an all too common cause. But illness, divorce and legal problems can also put a strain on the budget. Even happy events such as a move or an addition to the family can cause stress when it comes to money.

Logically, we all know that tough financial times call for smarter spending habits. But during a crisis, it can be difficult to keep the budget in check. After cutting back on everything we can, it may still seem hopeless. But instead of looking for other solutions, many people just give up.

Instead of seeking out other sources of income or finding creative ways to reduce expenses or increase income, those suffering from financial stress may go on spending sprees. They feel that they have nothing left to lose, so they spend money impulsively instead of trying to get back on track. They may run up huge credit card balances, but when the time comes to pay, they can't. So in addition to having trouble making ends meet, they have creditors calling daily and bad marks on their credit reports.

What to do if you're experiencing financial stress

If you find yourself in such a downward spiral, it is important to seek help quickly. By doing so, you could save yourself lots of money and heartache. In the vast majority of cases, those with financial difficulties have options that can help prevent things from getting worse.

At the first sign of financial trouble, it's important to contact your creditors. Tell them about your situation before you get behind on your bills. They will most likely work with you, because they want to maximize their chances of getting the full amount that you owe them. They may allow you to skip a payment, reduce your interest rate or lower your payments to help you out.

Talking to a trusted friend or family member can be helpful when you're looking at a bleak financial picture. They may be able to offer some suggestions. Even if they have no advice, just having a shoulder to cry on can help relieve stress.

If you have a lot of credit card debt, a credit counselor might be able to assist you. Credit counselors specialize in helping consumers manage their debts. Your counselor may be able to help you work out a budget, and he can also negotiate with your creditors if necessary. If you follow the plan he sets up, you could be debt-free within a few years.

Financial stress can be a vicious cycle. You become stressed out because you can't make ends meet, and then you make bad decisions that hurt your finances even more, which causes even greater stress. But it doesn't have to work out that way. By taking control of your finances and getting help as needed, you can prevent a complete financial meltdown.

Ten Tips to Surviving Sudden Job Loss

With the ever-changing economic climate and the tendency for manufacturing jobs to go overseas, layoffs have become all too common. One day you might be going in to work as usual, and the next you could be sent packing.

Unexpected job loss can really take the wind out of our sails. Not knowing how we will provide for ourselves and our families is a horrible feeling. It can emotionally and mentally paralyze us, leaving us ill equipped to get back on our feet.

If you lose your job, don't panic. If you keep a clear head, you can keep yourself going until you find another job. Here are ten things to remember.

1. When you find out that you are going to be out of work, talk to your employer about severance benefits. You may or may not be entitled to a severance package, depending on your company's policies and your employment contract. But in the case of a layoff, an employer could decide to provide a severance package anyway. If not, you may be able to negotiate and get one.

2. Apply for unemployment. If you were laid off, you should be eligible as long as you've worked and earned enough in the past year or so. You may also be eligible for unemployment under some other circumstances, except if you were fired for misconduct. As long as you are truthful about what happened, it can't hurt to apply.

3. Consider your health insurance options. You should be able to continue the health coverage provided by your former employer in most situations, but may have to pay the entire premium yourself. If your spouse has group health insurance, signing up with that plan might be a cheaper option.

4. Roll over your 401K. You will have a specified amount of time in which to do this before your employer writes you a check for the balance. After that, you have sixty days to deposit it directly into an IRA before you incur taxes and penalties. Even if you may need to use some of the money, rolling it over first will prevent you from having to pay taxes and penalties on the amount you don't use.

5. Polish your resume and brush up on your interview skills. The job market is more competitive than ever, but if you present yourself well and let potential employers know what you have to offer with confidence, you can increase your chances of finding a good position.

6. Take advantage of any job search help that's available. Your former employer may provide assistance in finding a new job. If not, your local job service offers lots of free services.

7. Find alternative ways to bring in some cash to help tide you over. Have a garage sale, sell stuff on eBay, or clean houses or do yard work part time. You can make some money without forfeiting your unemployment benefits.

8. Re-evaluate your budget. Even if you receive unemployment, you'll be living off of much less money than usual. Eliminate unnecessary bills and expenses, and determine how long you can make it on any income that you have.

9. Utilize your savings with caution. Ideally, you should have some savings put away for situations such as this. If not, you may need to withdraw money from annuities or retirement accounts or sell your stocks. Each of these options can cost you money in one way or another, so use them only if necessary.

10. Talk to your creditors if you're having trouble keeping up with necessary bills. Going to them before you get behind will make it easier to negotiate lower payments or reduced interest.

How does guaranteed income for life sound? Unless you have all the money you could possibly ever need, it probably sounds great. But surprisingly few people know that you can get income for the rest of your life by purchasing an annuity.

Annuities aren't something we hear about every day, but they are widely available. And they offer benefits that make them quite attractive to certain types of investors. They may be used to reduce tax liability, save money while earning interest or receive regular payments upon retirement.

Annuities are contracts between investors and insurance companies. The investor may make one large payment or a series of contributions to the annuity. The insurer then makes periodic payments to the investor. These payments may begin right away, or they might begin at a set date in the future.

Payments from the annuity can be disbursed over a period set forth in the contract, or for the insurer's and/or the insurer's spouse's lifetime. Either way, the annuity earns interest for the investor. But those who purchase lifetime annuities may collect more or less than the full amount, depending on their life span.

Benefits of Annuities

For those who are looking for a way to defer taxes on investment earnings, annuities are a good choice. Interest earned is not taxable until money is withdrawn. Retirement accounts also offer this benefit, but there are limits to how much one can contribute to them each year. With annuities, there are no such limits. And in the case of annuities, there are no penalties for withdrawing money before you reach a certain age.

Investing money in annuities is also inaccessible to creditors. This is because that money technically belongs to the insurance company from which you purchased the annuity. Creditors may, however, be able to take a portion of any payments you are receiving from the annuity.

One thing that concerns many investors about annuities is the fact that they could lose their investments if they die soon after starting a lifetime annuity. This can, however, be prevented. Most insurance companies offer the option to buy a guarantee period with their annuities. If you do, the insurance company will make payments to your designated beneficiary for the duration of the guarantee period if you die. Like life insurance benefits, annuity payments are not governed by wills and do not go through probate.

Annuities are often used to supplement 401K and IRA retirement distributions, but they may also serve a number of other purposes. But no matter how they are used, they offer a number of attractive benefits. If you are interested in an annuity, your insurance company can help you determine whether it is the right investment for your needs.

Pre-approved Car Loans

Buying a car can be a grueling process. It usually goes something like this: You go to a dealership and find an automobile that suits your tastes and/or needs. You discuss it with the salesperson, take it for a test drive, and decide whether to pursue it or keep looking. If you are still interested, you discuss the price and apply for financing. Then the salesperson goes back and forth with the sales manager until a workable price and financing plan is reached.

But sometimes it is not that simple. Buyers often choose a vehicle that is beyond their price range, and the dealer will not finance it. Or worse, the buyer may be turned down for credit completely. But much of this hassle can be avoided by getting a pre-approved car loan through a bank.

Getting pre approved for a car loan is a fairly simple process. The buyer simply goes to the bank before setting foot on a car lot and requests pre approval. The loan officer takes an application and runs the buyers credit report, and informs him how much money he qualifies to borrow. The buyer may then start looking at cars, and when he finds one in his price range, the bank sets up the loan.

Benefits of Pre-approved Car Loans

Getting a pre-approved car loan has some definite advantages. These include:

* It shows dealers that you are serious about buying. When they know you are definitely planning on purchasing a vehicle, they are more likely to try to offer you a good deal to keep you from going elsewhere.

* Having a pre approved loan from the bank eliminates the need to haggle over dealer financing. Rates for dealer financing are often much higher than those offered by a bank, and rebates or discounts may be tied to the interest rate. When you already have approval from the bank, you won’t have to make concessions in these areas.

* You know your price range before you start shopping. This can help you avoid pursuing cars you can’t afford. It may also give the dealer more incentive to offer you the best deal possible.

* It is possible that the dealer might try to beat the rate on your pre-approved bank loan. Dealers receive commissions and other incentives from the banks that do their in-house financing, so they prefer for buyers to finance through them. If they can offer you a lower interest rate than your pre approved bank loan, they will usually do so.

Getting pre approved for a car loan does not put you under any obligation. It simply means that the bank has agreed to finance up to a certain amount for you. There are usually certain requirements regarding the age and condition of the car, but you can generally choose any car you want and know that financing will not be a problem.

Stock Brokers Advice

It can be a good idea to use a stockbroker for an active management of your stocks or mutual fund portfolio. It can be vital if you want a steady growth. It may also be unnecessary as a passive management alternative often is available for long term investing.

However, many prefer to use and pay for the services of a broker because they feel more comfortable making decisions about their finances with the interactive guidance of a licensed advisor.

Using a stockbroker for financial guidance one must be aware of the fact that they do get paid on a commission. This can be a reason for them to trade more often as more trades make them more commission. The stockbroker is also paid on the result they can achieve.

Furthermore a conflict of interest arises when a stockbroker offers his/her services as a financial planner, because their revenue is generated as a direct result of your investment in the stock or mutual fund that they broker to you.

Your return on investment may not be as great, and the advice they give you might not be in your best interest. However, some mutual funds and stocks can only be purchased through a broker. In such cases their services are required to purchase the financial instrument in question.

If you use the services of your bank there are some facts to consider. When you talk about the options you have to invest your money, they will certainly recommend the funds they control themselves.

In some countries you can for example invest in a portfolio with shares and have a guarantee to at least get your initial investment back in 2, 3 or 4 years. Sounds great to many and when they say yes to invest, the bank charge 110%. In that way the bank make a profit and secure the costs from start. Do the bank take a risk? No, they cover themselves with other types of investments that function as an insurance.

So now your portfolio starts off with a backlog of minus 10%. Often the investment will recover and take back most of the initial loss and the guarantee makes many invest as they feel comfortable and secure when they invest in this way.

Back to the question about what kind of investments the bank recommend. Do they recommend other banks portfolios? I don’t think so. If you go to a car dealer that sell Ford, do they recommend you to buy a Lexus? Certainly not. A stockbroker working in a bank is not neutral, their job is to make you invest in the shares they make the biggest profit for them. If you make a profit too, that is fine but not their prime priority.

There are the authorities though to help the customer out. And there are rules and regulations about the way stockbrokers can and shall work. Depending on in which country you are investing the rules can vary. In some countries stockbrokers can have his own portfolio and the company where he works can also have an portfolio of shares.

This makes an eventual conflict arise whenever something special happens. There are numerous customers that suspect that they have been recommended shares in companies that will face problems and where the stockbroker wants to sell his own shares before the market drops. To prove these cases are almost impossible and to win them very rare. The number of transactions are also so big that it is almost impossible to trace and see a pattern. There might be just a few that went the wrong way.

Stockbrokers in general are behaving in a professional way and realize that their business will benefit most if the outcome for their customers are great. As a customer you are advised to check the results that a stockbroker have produced, trace their records. Do not look at the advertisements, the truth about the results are not there.

On the internet you can now use the statistics by independent companies that range stockbrokers, funds, shares etc. Here you can find facts vital facts for the outcome of your future incomes from investing.

How to Save Your Money Raises

It feels great to get a raise. It makes us feel like we’re being rewarded for all our hard work. It provides an incentive to keep doing a good job. And most of all, it puts more money in our pockets.

It can be tempting to start spending more money when we get a raise. Just a few extra dollars on each paycheck can make it possible to go out to eat once a week or start building up your wardrobe. But saving that extra money offers more long-lasting benefits, and it is relatively painless.

Think about it. You've probably been living on the pay you received prior to your raise for a year or so, and you survived that year. Its not much of a stretch to be able to survive another year without that extra money. Of course you wouldn't want to turn it down, but why not put it away to build an emergency fund, a college fund for the kids or a nest egg for your retirement?

And just imagine how much money you could save if you saved your raise every year. If you received the same percentage raise each year, you could put away over twice as much out of each check next year as you did this year. The following year, you could add a little bit more to it than you did the year before. As long as you can live on the same amount of money, you can increase the amount you save each year.

While you’re saving your raises, consider adding your bonuses to your savings as well. Its tempting to go out and spend like crazy when we get a windfall of money, but its smarter to save it. Bonuses are money that we usually do not include in the budget, so we probably won’t miss them.

How to Save Your Raises

There are many ways we can put money into savings. But which is the best vehicle for saving raises and bonuses? That depends on your goals.

When it comes to practicality, you cannot beat investing in a 401K retirement account. 401K deductions from your paycheck are tax-free, and you will never have to pay taxes on that money unless you withdraw it before you reach retirement age. Many employers also match your contributions up to a certain percentage or dollar amount, so you are essentially getting free money.

When you get a raise, you may be able to increase your contribution by the dollar amount of that raise. Or you might have to raise your contribution by a certain percentage. Your human resources department should be able to help you adjust your contribution to meet your goals.

Investing your raise in a college savings account might be a good idea if you have kids. Or you may choose to invest in stocks, bonds, or other investment vehicles. If you have more than one goal in mind, you might choose to divide your raise up among several savings options. If possible, consider having your contributions deducted from your checking account shortly after you get paid so that you’re not tempted to spend them.

If you’re looking for a way to save some money but cannot seem to make room in the budget, saving your raises could be the answer. Instead of adding the extra money into your budget, you can simply send it directly to savings and forget about it. In time, you can save up a substantial financial cushion.