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.
Tuesday, July 28, 2009
Saturday, July 25, 2009
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!
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!
Friday, July 24, 2009
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.
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.
Wednesday, July 22, 2009
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.
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.
Tuesday, July 21, 2009
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.
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.
Sunday, July 19, 2009
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.
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.
Thursday, July 16, 2009
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.
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.
Friday, July 10, 2009
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.
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.
Monday, July 6, 2009
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.
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.
Sunday, July 5, 2009
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.
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.
Saturday, July 4, 2009
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.
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.
Thursday, July 2, 2009
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.
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.
Wednesday, July 1, 2009
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.
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.
Subscribe to:
Posts (Atom)
Posts
