Bringing Your Budgeting Out of the Stone Age

No matter how much money you make, it is easy to spend too much. As expenses (debts) overwhelm revenue (credits), many people run into budget problems, such as overdrafts, penalties and even foreclosure. Paper and pencil don't automatically calculate depreciation rates, adjustable rate mortgages or equity derivatives. In the modern era, it is wise to use modern technology, tools and software options for bringing your budgeting out of the stone age.

Many people have run into financial difficulties due to overdrafting their accounts. With checking, savings and money market accounts that have frequent direct deposit or automatic withdrawal transactions occurring constantly, modern budgeting can be complicated. A simple Non-Sufficient Funds Fee of $35 can wipe out a planned restaurant meal or movie night.

People have a variety of different financial positions - from the high school or college graduates just starting out to the wealthy financial investor with numerous accounts and investments in his portfolio. Each person must find the best online software to fit his individual needs.

There are free and pay software online that can help with the three most important elements of budgeting:

• Accounting Credits and Debits


• Bill Pay


• Calculation


• Funds Transfer


• Investment Portfolio

Here are some popular online budgeting tools:

PearBudget

PearBudget is a Web-based financial management program offering a free 30-day trial. It is based on the Microsoft Excel spreadsheet using the envelope system where people place their money in a separate file, folder or envelope for each expense. This prevents people from spending money reserved for necessities on unnecessary items.

Users follow a simple 3-step process of Plan, Enter and Review for their budgets. The spreadsheet quickly calculates totals. The advantages of PearBudget include the ease-of-use, familiar templates and great customer service.

Mint

"We are refreshing money management" is the slogan of the popular Mint.com website. Mint is a free online money management tool where customers can view their checking, savings and credit card accounts in one convenient location. It has enabled anywhere budgeting with its award-winning iPhone and Android apps.

Consumers can quickly organise their financial information for display in colourful charts. The structure is straightforward and intuitive. It is easy to set spending monthly goals and Mint can alert you if you are above or below your goal. Mint is easy to customise. Mint boasts 4 million users and has won numerous awards.

Mvelopes

Mvelopes is online software based on the envelope budgeting system for financial management, which provides a guide or map for future expenses. Mvelopes offers a free 30-day trial. It encourages customers to "proactively take control of their budget."

It is simple to enter data into Mvelopes. Mvelopes enables users to budget, track spending, calculate net worth and pay bills. It is an award-winning program.

YNAB (You Need A Budget)

"Stop living paycheck to paycheck" is the motto of YNAB. YNAB offers a free 7-day trial download. YNAB helps users establish financial discipline with the four steps of Plan, Adjust, Surplus and Save to create a balanced budget.

Customers simply fill in their financial information into colorful spreadsheets. This software doesn't link directly into your bank accounts. The categories are already established to assist you with your budgeting. A more advanced version, YNAB Pro, is available with more graphs and charts.

Yodlee

Yodlee has services for both financial institutions and consumers for managing their money. The Yodlee MoneyCenter is free, aggregation software that enables users to get a solid picture of their financial condition. It has been described as a one-stop shop for viewing, tracking, bill paying and funds transferring purposes.

This is a good system for getting a complete picture of your financial condition. It has a Financial Calendar for planning ahead and timely alerts for reminding you of bills. Users can run generate personalised reports. Yodlee is effective at pulling data from different sources, maintaining your financial history and even allows you to include frequent flyer miles.

Matt writes at Money Choices, which is an independently operated Australian compare website for buyers to find cheap car loans and other financial products

How to Budget and be Free from Debt

The key to getting out of debt is to plan the family finances. Easier said than done, perhaps, but a vital step in avoiding bankruptcy, which is the ultimate price to be paid for letting debt issues get out of control.

Devising a practical repayment plan that can stave off bankruptcy takes time and effort. It may be that some impartial and practical debt advice can help outline all the steps necessary to make a debt management plan that would be acceptable to lenders. If the aim is to find an acceptable repayment plan then knowing what to aim for can save time, effort and money.

Impartial and practical debt advice can help with setting out a sensible and all inclusive budget. It is easy to forget to include items of spend that occur irregularly by simply studying one or two months. These may include motoring costs such as insurance, servicing costs or replacement tyres or items such as the annual TV licence fee.

Getting a complete picture of the expenditure is vital for successful budgeting, as is developing a sense of discipline in saving and spending. This may be the hardest part of any repayment plan as it requires a change in habits and lifestyle that may have become ingrained over many years.

Where large amounts of debt are involved then the options become clear cut and with a real reason to change. Smaller debt levels lack that sense of urgency or need to change but as any impartial debt advice will demonstrate the situation can escalate quickly if left unaddressed and bankruptcy could loom ever closer.

Bankruptcy should be far from any debtor's thoughts but remain as a final, but avoidable, solution to debt problems. Professional advice will help get to a position where a debt management plan can be developed that will help steer you back to financial wellbeing. However debt advice is only that – advice. The hard part is listening to that advice and making the changes to spending habits to actually make it achievable.

No lender will simply walk away from any unpaid loans. Finding a repayment plan that is acceptable to all lenders can be a tricky and involved process. Independent advice and advisors can point debtors in the right direction or act as intermediaries to get the best possible terms given the situation in hand. For those with debts over £15,000, there is the possibility of a legally structured debt management plan called an Individual Voluntary Arrangement (IVA). This is the final step before bankruptcy but has a number of advantages in that it is a private arrangement and avoids the loss of all personal assets.

It also involves receiving advice from a licenced insolvency practitioner who will also work with the debtor to establish what they can afford to pay given their income and expenditure. The debt management plan agreed will ensure that people retain enough to live on, although this may be tighter than before!

Save Your Money and Improve your Life

Have you always wanted to save a small amount of your income but cannot figure how? Do you find yourself spending the money you have intended to save? Here are some advice on saving money fast.

The Value of Budgeting

Having a budget requires managing your spending and saving your money. To gain control over your money and to be able to put yourself on a budget that works, you have to figure out where your money is going. Make a list of your expected expenses – transportation, food, clothing, and so forth. Also track your actual expenditures per month. You are now in a position to make some practical saving goals.

Don’t Let Your Expenses Exceed Your Income

After making a draft of your budget, make an assessment of how much your daily living costs. If it looks like your expenses amount to more than what you make, you may have to trim the former down. One guy discovered that he was spending too much on food. He was able to alleviate his financial issue by cutting down on eating out and on snacks. It may be painful at first but it proved to be beneficial. You may have to examine more vigilantly what your real needs are as opposed to wants.

Cautious With Credit

“Buy now, pay later!” urge many merchants. Used cautiously and intelligently, credit indeed has its benefits. Used recklessly, however, credit can become what a youth named Kevin calls “a form of slavery.”

For some youths, credit simply makes it too easy to purchase things they neither need nor can afford. And if you do not pay off your balance at the end of the month, you are charged interest on what you owe. The longer it takes you to pay the credit card company for the money you spent which isn’t yours, the more an item ends up costing you.

This is because whatever amount you were not able to pay at the end of the month will be “charged”, so to speak, with the interest rate and finance charge that the company follows and which you agreed to when you signed your form with them. If you think about it, then, it is cheaper to save up for what you need and pay for it with cash.

‘A Penny Saved . . . ’

It makes good sense to include in your budget an amount to set aside as savings. This can help you weather a financial storm more easily. This can also be a good move even if you are not in a financial mess.

On a related note, a piggy bank or a shoe box may seem like a smart place to store your cash in. However, a better alternative would be to start putting money into a bank where it can earn interest and grow. If you don’t have a bank account, discuss opening one with your parents if you are a minor.

If you are of age, now is the perfect time to open a savings account. You need not have a huge amount of cash to make a savings scheme work, although in some places a sufficient amount is required to avoid a service charge. The key to success is being regular when it comes to adding to your savings.

You can use all these strategies to save money, reduce debt and improve your life but it will not last unless you have a system automatically set up to continually work without your input.

Get Dan Cavalli's FREE money saving secrets set on auto pilot at: www.the-richest-man-in-babylon.com

Best Options for Investments in 2011

We work hard in order to live the lifestyle we want, and support the future we dream of. However, working hard for our money is not enough – you have to make sure your money keeps working hard for you long after it has been paid into your bank account. Your salary and earnings can’t get you to the future of your dreams on their own, you have to direct and guide your funds into investments which are right for your finances, your needs, your goals and the current economy.





Financial markets tend to run in cycles, something you will have noticed if you watch the movements of official interest rates. Therefore, it is important to know which investment option is at the top of its cycle in 2011, so you can make the most of your hard earned cash. In 2009, significant gains could be made on the stock market, and in 2010 the real estate market was paying big dividends for investors where residential real estate investors in particular could see returns of between 50-100%. At the same time, the stock market in 2010 was returning just 18% and gold returned around 30%.

Therefore, even though we have said goodbye to 2010, we are still in the 2010-11 financial year and investment decisions need to be made with both the not-long-past recession and the future opportunities in mind.

Investing in Gold in 2011

Gold is often used as a safe haven by investors when there is the risk of a recession, interest rates are fluctuating and to protect against inflation. Although gold has long been a popular investment option, the fluctuations in price cannot be ignored, for example gold hit a low of $100 in 1976 before rising to $850 in 1980. Although gold dropped again to $250 in 2001 it has been rising ever since and topped $1,400 in December of 2010.

However, the world economies are stabilising and the risk of recession is abating and so while gold is expected to stabilise in 2011 it is not an investment option which will show a lot of growth in the coming year. Therefore if you are already invested in gold or gold funds, you may want to consider cutting back your money there, and avoiding the investment if you’re new to the precious metal.

Currency and Forex Investment in 2011

The foreign exchange market is constantly on the move and the currency which is the best investment can change at a moment’s notice. Therefore, you should always be aware of what is happening in the currency market regardless of the turn of a calendar and if you were watching at the close of 2010, you will have noticed many currency pairs falling significantly in their averages. If these falls continue throughout 2011, there will be a comparatively small trading range for the day’s trades every day.

At the same time, you can make money on the forex market in 2011 by looking at longer term trades. Since the trading ranges are small in the current market, especially in the main pairs you should look at an everyday chart to spot the overall trend and look at a four hour chart so you can pick your entry and exit points. The main pairs on the currency market will always match technical analysis on long time frames and all you have to do is locate one or two high odds trading opportunities each week.

Since there has been such instability in many economies in recent years, the forex market has become a very popular investment option. If you’re only just starting out in currency investment, consider using a managed forex account to help you navigate the changing market as many countries continue their path to recovery.

Real Estate Investment in 2011

Investments which are ‘as safe as houses’ tend to be very popular, even as the world economies emerge from slumps and step back from the brink of recession in most areas. If the memories of falling stocks and lost investment interest are still fresh in your mind you may be looking to property investment in 2011. Many countries have experienced a property price boom in response to low interest rates and high demand from first time buyers and investors, thanks to generous government incentives to keep economies strong. As a result , investment in the Australian or Indian property markets for example would see you buying at the top end of the price cycle, but is good news if you have already secured your property.

However, in the US for example property prices are still relatively low as the economy struggles to recover fully, and there is little demand. While interest rates in the US remain low, it is still hard for many Americans to borrow due to other debts, a ruined credit rating or unemployment. Therefore, if you have the means and the opportunity to invest in property in 2011, you could snap up a bargain this year, which will inevitably appreciate in value over the long term.

Saving Your Money in 2011

You may think that squirreling your money away in a saving account will never go out of style but as the Global Financial Crisis taught us, even the biggest of banks can fail, and take our money with them. Therefore, you need to make sure you research and diversify your savings investments for 2011 to make sure you get the best returns, your savings can beat inflation, and that they’ll be there when you need them.

Four savings investments you should consider for 2011 include:

1. Certificate of Deposit.

A certificate of deposit offers some of the highest interest rates available because you are locking in your savings for between one month and five years. To make the most of interest rate movements in 2011, opt for both long and short CD accounts so you can take advantage of new higher rates as they change.

2. Online money market accounts.

When you use an entirely online account you can secure a high interest rate on your savings because of the lower administration costs from the banks. In some cases these interest rates can even rival Certificate of Deposit interest rates. With an online account you can also quickly and easily transfer funds in and out, but are not tempted to spend because the account is not linked to your ATM or EFTPOS card.

3. Instalment savings account.

If you need a bit of encouragement or motivation to grow your savings investments in 2011, consider an instalment savings account where you agree to make regular payments to the account for a certain period of time. There can be penalties for withdrawing money early as a further incentive to save but if you shop around for the best savings account offer you can earn high interest by playing by the rules.

4. TIPS mutual funds.

TIPS are bonds which are issued by the US treasury and pay a return based on the adjusted principal value of the bond. The value is adjusted twice a year with the rate of the consumer price index so your TIPS mutual funds can always keep up with inflation. Banks can sometimes be slow to raise the interest rates on their savings accounts because the Federal Reserve is determined to keep interest rates low. However, with an affordable TIPS mutual fund your savings are protected against rising inflation.



No matter what year it is, or what the market is doing, it always makes good investment sense to diversify your investments across a number of options. This not only allows you to take advantage of changes and movements in a variety of areas in the economy, but also protects you if 2011 doesn’t bring the prosperity expected for a particular investment medium.


Alban is a personal finance writer at Home Loan Finder, a home loan comparison website

How Can You Save Your Hard Earned Money Quickly?

We all know the importance of saving money. It can be a challenge, however, if you are already under pressure with your household expenses. Here is a guide to saving money fast that can help you save for an emergency.



1. Set Goals

You should start by figuring out the amount you need to save. According to experts, you should have a minimum of six months worth of savings just in case you'll end up losing your job. But having a year-worth of savings can be a wise move.

To be prepared for any situation, make a note of your goal and figure out exactly how much you need to save. Create a game plan, but make sure that you consider the most realistic length of time it will take you to attain the said amount.

2. Keep Track of Your Savings

Apart from being aware of how much you are saving, you also have to consider where you are spending your money. Track your expenses so you will have an idea where your money went and think about where you can hold back. If uncertain, keep a monthly record and check what were unnecessary.

3. Eat at Home

Meals can also be a huge part. Aside from being healthy, eating home-cooked meals can also help you with your money-saving endeavor. You won't lose with this choice.

4. Use Coins

Carrying a lot of coins can be awkward for some people. They will sooner or later wind up on the street, stuck in the couch or in an old coin purse. People do not think about the value of saving money when it comes to coins because they think these do not have much worth. But if you think about it, they do have a great value!

On a related note, keep a piggy bank around. After a month, you will be surprised at how much money you have saved.

5. Take Advantage of Freebies

Whenever you pay, make certain that you are really paying the lowest amount. Don't pay for something in a store when another store can give you the same thing for free. Always check that you will get your money's worth.

6. Use Coupons

Mail-in coupons often give you discounts. Make sure you save them and use them on things that you will eventually buy. Use them to cut down on your expenses.

7. Sell Stuff You Don't Use

You can easily sell your unused belongings by setting up shop in shopping websites. You should never discard them whenever you see extra items lying around your house.

8. Do Christmas Shopping in Advance

If you are considering Christmas shopping, why not do it after Christmas day? Many have managed to save thousands of dollars by applying this basic shopping principle.

9. Get Your Hands on Free Books

Instead of buying books to read, why not go to the library? Libraries will not cost you anything. You should always take advantage of this!

10. Earn Extra Income

Rent out the extra room in your house if it is available, especially if you live near a college. Be creative and find opportunities that can lead to an extra income. Follow this guide to saving money fast and you'll be on your way to wealth!

You can use all these strategies to save money, reduce debt and improve your life but it will not last unless you have a system automatically set up to continually work without your input. Get Dan Cavalli’s FREE money saving secrets set on auto pilot at: www.the-richest-man-in-babylon.com

Building a Long-Term Savings Plan: Your Guide to Saving Money Long Term

Sure, you know how to spend your money. But do you know how to save it? If saving seems like a far-fetched idea for you, it’s time you change your attitude about money. It’s wise to have your long-term financial goals in place while you’re still young so that you will feel financially comfortable and secure in the long run. Over time, you will realise it is the best decision you have ever made in your life. What you need is a comprehensive guide to saving money long term to start your way to financial freedom.



Before you get to know how to save money for the long term, you have to determine first your motivations for doing so. Starting your long-term savings plan as early as now gives you more time to grow your money. The longer time it takes your money to grow, the higher return you will get out of your investment in the future. An attractive benefit of having a long-term savings fund is a worry-free retirement.


You will have a peace of mind because your savings will take care of your financial needs during your retirement years. Also, if you’re thinking about buying your first home or car, saving for the long term can help you with that. Lastly, building a long-term savings plan teaches you the value of financial responsibility. By saving a part of your earnings regularly, you learn how to manage your finances efficiently. And when you’re already equipped with great financial skills, you are less likely to drown yourself in a sea of debts.


Once you have determined your reasons for having a long-term savings fund, make sure you are well-prepared for it. Using the right techniques prove to be helpful in growing your long-term savings fund. These strategies will serve as your guide to saving money long term. Where do you get them? Research, get expert opinions, and keep yourself updated on the latest developments in the economy. That way, you discover your options as well as great opportunities for getting the most return out of your savings or investments.


You will also need discipline to achieve your long-term financial goals. Every so often, it is tempting to use your savings to spend for other expenses like emergencies, travel, and other needs. To avoid falling into that trap, try your best to put up a separate emergency fund and other short-term savings accounts so that you can easily access money whenever you really need it. If you want to make sure you have enough money to send your children to college someday, you have to set up an educational savings fund to cover for those expenses.


Lastly, commitment is critical for a long-term savings plan. Without it, you just put your initial efforts into waste. What’s the use of a guide to saving money long term if you’re not committed enough to sustain your savings? Focus on your goals and you will never have to worry about your financial future.


You can use all these strategies to save money, reduce debt and improve your life but it will not last unless you have a system automatically set up to continually work without your input. Get Dan Cavalli's FREE money saving secrets set on auto pilot at: www.the-richest-man-in-babylon.com

How to select the right real estate agent in for your needs?

When it comes to buying or selling real estate, you would always need the expert assistance of real estate realtors, otherwise known as real estate agents. This article would focus on how to choose the right real estate agent for your needs. The quality of services provided by real estate realtors differs significantly, from wonderful to appalling.

For getting a really good real estate agent, you should search for one who is:

• An honest person
• Working in the real estate industry as a full timer
• Skilled with the kind of services you want
• Familiar with your choices and requirements
• A certified professional, meaning he has fulfilled the minimum prerequisites of training, education and examination.
• Well informed about the locality where you want to stay
• Conversant with business affairs
• A member of the trade organization like the National Association of Realtors (NAR). This indicates the real estate agent is aware of market information, listings and other details that nonmembers would find difficult to obtain
• A receiver of supplementary credentials (search for initials on their business cards - for instance, NAR confers credentials like a GRI or Graduate Realtors Institute or even more sophisticated CRS or Certified Residential Specialist. You wouldn’t get many agents with these credentials.

Look for recommendations

If you want to find out a truly good realtor, then going for referrals is also a good decision. You can get recommendations from your friends, family members and colleagues. You should especially look for referrals from those who have most recently bought or sold a home. As soon as you get a short list of capable realtors, let every one know you wish to question him or her for around 30-45 minutes in person, if possible. Not only would you be checking the knowledge of the agent but also his or her accommodativeness and promptness.

Ask questions

Given below are some questions that you can ask a realtor to find out if the agent’s skill and success rate are suitable for your needs. You can also include your own queries. For instance, if you’re seeking assistance in buying a newly constructed home in a development or condominium, you’d need to make sure your agent has knowledge about such properties.

Important questions that you would need to ask are the following:

• What is your mode of communication?
• How many homes have you located for buyers in the previous year?
• How can you assist me afford the home I need?
• How do you arrange your work?
• Who are your previous clients I can contact as references for you?
• Will you be working as the representative of the seller by any means?

You should keep in mind that asking questions and seeking referrals from different sources can surely help you get the right real estate agent for your needs. Only choose an agent who listens to you with patience, attends to your needs and replies to your queries frankly.

Above is the guest post provided by Miss Bettie Wills from San Jose Real Estate Inc. She excels herself in writing articles related to real estate, mortgage, properties etc.

How to use free ads to make money after Christmas

Most people would probably think that selling unwanted presents is in bad taste. There is something almost sacred to a present, and some kind of unwritten rule says that the recipient of a present should always be grateful and, of course, keep the present.

However, it looks like more than 6 our of 10 people receive, every Christmas, at least five unwanted gifts. According to a research made by the charity The Brooke on a sample of the British population, almost one brit out of three this Christmas will give away as a gift an unwanted present from last Christmas. So, it turns out, presents are not so sacred.

Seeing things with a pragmatic approach, it could be said that there’s no point in keeping around unwanted, unused gifts, so if they can be recycled, they might as well be sold. Reading about what are considered to be the most unwanted gifts, moreover, makes it easier to understand why some people would want to resell them. The top three most unwanted gifts are bubble baths, bath salts and socks: pretty generic stuff, indeed.

The solution to boring presents is the old saying: one man’s trash is another man’s treasure. From an economic point of view, that concept is what make markets work in general. The fact that someone would like something that you would happily get rid of is the very basis of second hand commerce. This means that it’s definitely possible to make some money out of unwanted presents. The easiest way is to use some classifieds site. Free ads can actually be a big help in getting rid of unwanted stuff and, of course, you can always hope that the baths salts that you got are a rare, sought-after item for some collector.

Those of you who are more financially bold can try using an auction site. However, the problem with those sites, compared to free ads sites, is that it can be hard to get bidders to offer high - or even just half-decent - prices, and often the seller ends up selling the item at the minimum price. So it could be a good idea to use a classified ads site where you can just come up with a price and stick to it.

With some patience is possible to get a surprising amount of money even from relatively common items: sooner or later you will find someone who will want your present more than you do. Publishing an ad is something that doesn’t require a lot of effort, and most classifieds sites keep ads published for long times. In the end, it’s waiting game. And if no buyer shows up, you can always wait until next Christmas to give you unwelcome gift to someone else.

Money Saving Advice for the Working Man

Saving money is not as easy as it sounds. If a person wants to save money, the single most important money saving advice one can give a working man is to save for retirement. Statistics show that more than 70% of employees today have not saved enough to cover their retirement.

Only 15% will even have enough to qualify for retirement benefits as mandated by the Law. Saving money for a rainy day is an adage said and heard hundreds of times but never seems to be a possibility for many. Even with an extra job, many folks still don’t make enough money to save.

In the end, many workers end up working past retirement age in order to survive or end up in the streets. The single most important goal for every working man therefore, should be to save for retirement. This must be started at the earliest possible time.

To save money, it is important to work at making extra money. However, working at making more money is not the key. The key to making extra money is to work at cutting down on spending. Only by reducing expenses can one make that extra money to save away.

Working at reducing expenses could mean sacrificing some weekend splurges, hand-washing the clothes and doing the dish-washing in the sink. It could also mean using half the amount of toothpaste used every time, lowering the temperature in the water heater and furnace, and taking long walks in the park instead of long weekend drives.

Compute how much is spent on a weekend night out and compute how much money could be saved in the bank if you deposited some of that instead. Let us say that instead of spending $50 on a Friday night and another $50 on a Saturday night, one went out only once a week and deposited $50 in the bank instead.

That would easily amount to $200 a month. By depositing $200 a month for the next 40 years until retirement, a person will have saved a total of over $185,000 at a 3% interest rate compounded annually. That’s an extra $1000 a month for the next 18 years or so.

And that is based solely on saving on weekend binges. If one lived a sensibly frugal life and put away $400 a month, simply doubling the earlier figure will compute to $370,000. Not bad for a nest egg. The idea is not to save money for the short term – to buy a car or house, but to save enough for retirement.

There are several reasons for this. One is that saving money for the short term means wanting to save a lot at the shortest possible time and then dipping into the savings every now and then. Another is that there are also many ways to buy a car or house, but only one way to save for retirement. For instance, the company could give an employee a car plan or a housing plan.

A retirement plan on the other hand, means saving for it. A short term goal also negates the advantage that one gets out of bank interest rates. Therefore a short term goal is not one must strive for in saving money. Work at saving money for retirement – that is the most sensible money saving advice a working man will ever get.

You can use all these strategies to save money, reduce debt and improve your life but it will not last unless you have a system automatically set up to continually work without your input. Get Dan Cavalli’s FREE money saving secrets set on auto pilot at: www.the-richest-man-in-babylon.com

Save Your Money with the Luxurious Living

Saving money can be a tough challenge. Saving is anything but instant as we are living in a society where we are used to immediate indulgence. With the current economic collapse, many people are learning the hard way on why saving is imperative.

Now they just have to figure out how to save money. The first thing that has to be done is to get out of the immediate indulgence mindset. Remind yourself how beneficial saving money can be. Write down its benefits to give you tangible proof that saving is necessary.

You will keep on saving when you see something you think you just have to have. Next is learning the basics. Why not learn from the experts? Your parents can teach you how they budget the expenses at home. Ask them how much heat, water and electricity cost each month.

Such details might be boring for you but you have to learn about them. By the time you leave home, you will have to start paying for these things yourself. You must also identify the challenges. Learn to control your spending.

This may be easier in theory than in practice, especially if you are only receiving an allowance or you live at home. Because your parents are likely handling most of the expenses, you would tend to spend your money easily since a large amount would always be available.

And admittedly, spending money can be fun. Your peers can contribute greatly to the challenge, though. This is because they might pressure you into spending more than what you can afford. Shopping has become a main form of entertainment for most teens.

They seem to have an unwritten rule that you can’t have fun if you don’t spend money. You must also learn the difference between need and want. It's easy to see something in a store that you think is important. Try to walk away from anything you believe you need or want the instant you see it.

If you find yourself thinking about buying it later – after a week or so - and you have sufficient amount of money to purchase it, then you can buy it. Chances are, you really need the item. If you stop thinking about it quickly, then you really didn't need it in the first place.

Always be in control. Plan ahead. Do not spend your whole paycheck or max out your credit card in one night. You should also set a limit to your spending. It may be wise to put money in the bank and take out only the amount you need.

It may also be more sensible to go shopping with friends who are careful with their money. Learn to manage your expenses. Keep a record of your purchases. For at least a month, keep track of the money you receive and the date you received it. Make a note of each item you buy and the amount it cost.

At the end of the month, calculate the difference between the amount received and the amount spent. Make a budget. List all income you expect to receive in a month and write down how you plan to spend your money. Also, record all unexpected expenses.

Avoid having debts. Ask yourself honestly if you can afford to buy an item. Look around and do comparison shopping. Many people seek the best price when purchasing goods but settle for whatever interest rates are offered by the merchant.

Compare annual percentage rates of banks or credit card companies to see if you can get a lower rate. If you become burdened by debt, seek help. With practice, these tips on how to save money can change your finances.

You can use all these strategies to save money, reduce debt and improve your life but it will not last unless you have a system automatically set up to continually work without your input. Get Dan Cavalli’s FREE money saving secrets set on auto pilot at: www.the-richest-man-in-babylon.com .

The Basics Of Claiming Bankruptcy

Knowing how to claim bankruptcy can make a very big difference in the amount of time it takes and the stress you have to deal with to get through the process. Not only will you be in financial strain, you will also be in emotional turmoil and knowing how to go about it will be very helpful.

Once you have decided that this is your only way out of your financial woes, get in touch with a bankruptcy lawyer. These are professionals who understand the process, know the implications and provide bankruptcy services to assist you. The lawyer will be able to confirm that bankruptcy is your only and best option and if not they will offer alternatives that you can pursue to save your credit rating. Your credit may already be bad but if there is something other than bankruptcy you should consider it since the consequences of bankruptcy are long term.

Once you and your lawyer have settled on bankruptcy as your best option, the next step is to decide what form of personal bankruptcy is best for your situation. Your lawyer will use the information you provide as well as the documentation you produce to help you make this decision. Be completely honest with your lawyer or they could misguide you which could have serious implications. Chapter 7 involves liquidating all your assets and beginning a fresh. Chapter 13 on the other hand involves negotiated payment of debt. Each has its pros and cons and your lawyer will address each so that you can arrive a well thought out decision.

Beyond guiding you through the bankruptcy proceedings, your lawyer will help you get help that will keep you out of financial trouble in future as well as get you back on your financial feet. There are professionals who can help you with budgeting, financial planning, savings and other financial services. A lot of them will charge a minimal fee or offer free services as they understand that they are working with people who are in financial trouble.

If you know the people who understand how to claim bankruptcy you will find that the process could be much easier for you as opposed to the situation of deciding to go it yourself. It is important to note that bankruptcy should be an opportunity for you to reorganize yourself and prepare for a return to financial well being. Try and take care of your finances by following solid financial advice and you will never need to apply the information on this article.

Who Wants to Buy Yahoo?

One of the more troubled technology firms in recent years has been Yahoo. Once the darling of internet and high tech investors, they have hit a rough patch as of late marked by several changes in management and a failed buyout offer from Microsoft. The latest report fresh from the Wall Street Journal is that AOL is considering taking over the company, and this was enough to surge the share price of Yahoo by 15%.

There are several reasons why this deal will never happen, and should not happen.


1. AOL is a much smaller company, and taking over Yahoo will put it in serious debt. Most of Yahoo’s web properties aren’t turning a great profit, so they are of little value to AOL.

2. AOL is increasingly focused on content, something that Yahoo just doesn’t have much of. True they have Flickr, and some good sites like Yahoo News and Yahoo Sports, but they don’t have a lot of original content that AOL looking for right now.

3. Yahoo is looking to sell its most valuable asset, which most people have never heard of. A company called Alibaba that produces online trading software for the Chinese Market.



When companies like this take a big rise off of some news based on rumor or innuendo, it’s a great time to short them. If you’d like to know more about shorting stocks or just learning more about how the market works, check out Global Finance School.

The offer online e-learning courses for newcomers to the world of investing and markets.

Forex Trading for Beginners: A Disciplined Approach is a Key for Success

Trading currencies, or forex as it is known, has experienced dramatic growth and popularity over the past decade due to its inherent flexibility and easy access via the Internet to sophisticated trading programs that do most of the work that in bygone days was left to the trader to assimilate. The currency market is the largest and most liquid market in the world with average daily turnover exceeding $3 trillion. Over half of this volume is between banks, but retail forex trading is the subset of the market where consumers can participate with the aid of a competent brokerage service.

However, trading forex is a risky proposition and falls at the very top of the risk pyramid when its risk profile is compared to other investment vehicles. Specialized training is required, coupled with practice on virtual systems, in order to prepare oneself for the fast action and swings of the market. As with any performance-driven profession, one needs to hone their respective skills in order to compete and be successful.

As with all investments, forex trading is all about managing risk, and there are tried and true methods for achieving this objective. For a beginner, he must accept his “amateur” status and bridle his impatience. The urge to leap into the market and begin trading right and left is compelling, but the majority of those that react to this urge soon find their pockets empty and their confidence rattled. However, a beginner need not have this experience if he follows a straightforward learning regimen:

• Knowledge: Gain awareness by reading as much as possible on the topic. Internet websites and free tutorials are great for this task. Your goal is to become familiar with terms and the lingo so that each new piece of information about the craft makes sense to you. Enroll in a structured class to receive mentoring from an expert. He will help you choose a broker and form a trading strategy;
• Experience: Your broker will have a forex demo account to practice with real trading data and virtual capital. Successful traders swear by their practice time, claiming that months were required to develop the confidence and consistency needed for real market conditions. There are no shortcuts to gaining experience;
• Controlling Your Emotions: You must have a disciplined approach to the market before you enter it and to guide your decision-making once you are in a position. There is a psychology to trading in a highly stressful fast-paced situation. Your plan will help you stop your losing trades and allow your winners to run.

The reference to a disciplined approach to the market cannot be overstressed. Managing risk is what forex trading is all about, and what we mean by this statement is that you never enter the market without protecting yourself from adverse swings in the market. You will have losing and winning trades, but your objective is to keep the “net” of all of your trades in positive territory. You do that by employing sound risk management techniques. Let’s look first at a definition:

Currency Risk, sometimes referred to as exchange rate risk, is the possibility that currency depreciation will negatively affect the value of one’s investments.

Part of a forex trader’s plan involves assessing the risk/reward of a potential trade before its execution. Different currency pairs have differing volatilities in the market, such that a fixed number of “pips” or basis points in the currency quote is not recommended as a measure of risk. Traders use an “ATR” indicator, which is the average trading range for one trading period for the last twenty trading periods. If the value were 30 pips, then a calculated downside of 70%, or about 20 pips below his entry point, is where the trader would set his stop loss order. Using a 2:1 ratio, in this situation a trader would expect to gain 40 pips before considering an exit.

A Stop Loss Order is an instruction given to your broker to automatically liquidate your open position for a currency when a specific price is reached. The placement of these orders should occur right after you establish a position in the market. Lazy traders that ignore this prudent practice soon learn to regret their neglect. Currency markets are known for dramatic swings in either direction as new information is released.

The principles discussed above are the “basics”. Forex traders should also never risk money that they cannot afford to lose and should place only a manageable portion of their capital at risk in any one position. Money management, coupled with proper risk mitigation, allows a trader to survive and thrive in the world of forex. Caution and a disciplined approach to the market are the hallmarks of success.

Saving Money Comes To People As An Afterthought

So you enjoy a savings account. Oh, really? A lot of people have saving accounts but find it hard to deposit into it. This is a very common problem and you may be experiencing it. When your paycheck arrives, it is usually deposited automatically to your checking account to pay the never ending stream of bills and expenses.

But before you go rushing to your bank to close your savings account, consider first putting it to good use. Here’s how to save more money using your savings account. The scheme is you talk to your employer and ask if they can deposit a part of your paycheck to your savings account as well. And that’s it.

It doesn’t really matter how much is deposited, just keep this scheme going to ensure that your money is saved before it’s spent. It’s that simple but why is it very effective?

When you receive your income, you will most probably do some budgeting and allocate the money to bills, rent or mortgage, groceries and other necessities and expenses. Left over money, if there is, is what usually end up as savings.

The problem is, for most of the times, nothing is left to be added to your savings. There is almost never any money left. If there is, left over money still has to survive your temptations of spending them. If you have excess money and it’s easily accessible, your tendency is use it to buy the first beautiful dress you see, or the latest electronic upgrade for your computer and other fancy materials that may catch your attention.

Automatic and regular deposits of your income to your savings account mean you don’t have to think about it and you don’t have to rely on what’s left. The money is already saved before you have to think about expenses and before you can spend it on other things.

You don’t get to hold the money and be tempted to spend it for comfort goods. Automatic savings is very easy to do, thanks to modern day technology and automated systems. Although some employers don’t allow this splitting, most banks can make a direct link between your savings and checking accounts.

Instruct your bank to establish an automated transfer between the two accounts on a regular basis. Say your paycheck arrives every Monday, you can set an automatic transfer for a fixed amount of money to coincide with this day. How much you save matters only if you are planning on a goal.

But if you are saving just for keeps, even $20 every payday is so much better than nothing. However, it is highly suggested that you allot at least 5% of your total income to go to your savings. What matters, as has been repeated, is that you keep this going for as long you can, for as long as possible.

Couple your savings with the bank’s interest rate and you are definitely going to have a wealthy sum you can use for the future or whenever needed.

You can use all these strategies to save money, reduce debt and improve your life but it means nothing unless you have a foolproof method automatically set up to do it for you. Get my FREE money saving secrets set on auto pilot at: www.the-richest-man-in-babylon.com

How Overspending Can Be Tamed

Saving money is not an easy task, but if you realize that it is the easiest and safest way to prepare money for future use, you begin to consider saving as an essential part of your daily budgeting.

The ultimate goal of effective saving is to spend less than you earn. If you tend to spend above your means, it is the start of you falling into debts. Thus, the secret to saving effectively is to spend wisely and therefore, the best way to save money is to stop overspending.

To do this, you need to examine the roots of overspending. A great percentage of people are victimized by credit cards. You may not be an exception. Take a quick look in your mailbox and you’ll quickly realize why your money seems to fly so fast.

You are flooded with credit card bills, auto loans, mortgages and other bills on a daily basis. Credit companies may promise you easy money, but the problem starts when you begin to accumulate credits you can’t pay for.

If you make a purchase and realize at the end of the month that you can’t repay in full, you are now trapped on the slippery slope of debt. You may promise yourself that you’ll have enough the next month but this promise is rarely kept.

At this point, high interest rates of credit cards can really hurt you and you may end up paying for more than your original purchase. Credits are truly monsters to your saving dream, so start using cash.

This way, you can feel that you are really spending your money. Credit and debit cards are easily swiped and funds are automatically whisked from your accounts. Without the physical act of handing down money to another person’s hand, you may feel you aren’t spending money at all.

This is the main reason why most people seem to overspend on their credit cards. Use cash whenever possible so you can more easily tell when you are going overboard. Aside from credits, your comfort zones may also be snatching your money.

Everyone sure loves having a good time with friends and family, but ensure that these parties are within your financial limits. From time to time, everyone needs to unwind. As they say, we must enjoy life. However, it is also necessary that we know when to decline.

Don’t squander your money today for guilty pleasures if it is not within your budget. Think of cheaper alternatives, or have the party some other time. Shoes, dresses, video games, and even books are also comfort zones that eat up your savings.

Actually, there’s really nothing wrong with these things as long as you don’t go overboard. This is the time when you can keep some amount from your budget and use it for these. You’ll enjoy your purchase and enjoy it even more when you know you won’t spend the next years paying it off at 15% interest.

Saving may be requiring you to sacrifice a lot of your comforts. But in this world where economies are going down, it is no longer an option but a must for every person to save money.

You can use all these strategies to save money, reduce debt and improve your life but it means nothing unless you have a foolproof method automatically set up to do it for you. Get my FREE money saving secrets set on auto pilot at: www.the-richest-man-in-babylon.com

About the Author

Dan Cavalli has written hundreds of articles on business subjects. He is an entrepreneur, expert on small-business success, retail troubleshooter, and business strategist. *Australia’s newspaper “The Financial Review” called him one of Australia’s “Internet’s Untold Millionaires” and “Telecommunication Tycoons”. An Author of the International selling book: ‘Blueprint for Making Millions’ http://www.blueprintformakingmillions.com.

Understanding your finances:1st step to controlling your debt

If you don't really understand your finances, you're bound to find it harder to get / keep them under control. It's true of anything, but it's particularly true of personal finance matters - that's one reason there are so many companies, charities and government organizations which exist to help people get to grips with their money and control their debts.

Understanding your finances: income and expenditure

1. How much do you earn?
2. How much do you spend?

These two questions are right at the heart of your personal finances. When you know exactly where your money is coming from and exactly where it's going, you'll know:

1. How much you can afford to put towards your debts every month.
2. Where you can cut back on your spending so you can put more towards your debts and get 'back in the black' faster.
3. When your situation is serious and you need to look for debt help.

So, start by writing down everything you receive in a month:

• Wages, child benefit, income support, tax credits, Jobseeker's Allowance, Incapacity Benefit, Disability Living Allowance, etc.

Add it all up to get your Total income.

Next, write down everything you need to spend in a month:

• Rent/mortgage, secured loan payments, council tax, utility bills, pension contributions, phone bills, TV licence, housekeeping, child care, the cost of essential transport, clothing and food, etc.

(Please note that this list includes payments to your priority debts but not payments to your non-priority debts (see below).)

Add it all up to get your Total expenditure.

Take your Total expenditure away from your Total income and you'll get your Disposable income. This is the money that's available for:

• Making payments to your non-priority debts.
• Spending on non-essential goods and services.
• Saving.

Understanding debt

• Priority debts

Your priority debts are the most important ones, with the most serious consequences if you don't keep up with them.

If you fall behind on your payments, you could have your possessions removed by bailiffs, or have your gas / electricity supply cut off. If the worst comes to the worst, you could be evicted - or even imprisoned! (Having said that, you should have plenty of warning if any of your creditors were thinking about taking action against you, giving you the opportunity to get some debt advice and sort out your problems before things got so far.)

• Non-priority debts

Unsecured loans. Credit cards. Store cards. Catalogue debts. Overdrafts. Some Hire Purchase agreements (for non-essential goods).

These are your non-priority debts - but that doesn't mean you don't have to repay them! It just means they're less important than your priority debts, since the consequences of non-payment aren't as serious.

So staying on top of your non-priority debts is important - but staying on top of your priority debts is vital. That's why your priority debt payments make up part of your Total expenditure. Your non-priority debt payments will have to come out of your Disposable income.

If your Disposable income isn't enough to cover your payments to your non-priority lenders, your creditors may agree to accept lower payments if you ask them - and show them that this is the best way for you to clear your debts. Just bear in mind:

1. They won't know you need help unless you tell them.
2. You need to take action as soon as possible, before your creditors decide that they need to.
3. You don't have to do it alone. Click here for help with managing debt.

Mortgages and Homeownership: A Mixed Bag of Curses and Blessings in the Current Economy

Following is the guest post written by Michelle Studer from budgetpulse, an interactive, web-based budgeting utility. It reflects the rhythm and the flow of savings and spending goals.

Like other aspects of today’s economy, home ownership equals hardship for some and opportunity for others. On the one hand, the sub-prime mortgage mess was a major factor in last year’s economic meltdown and current foreclosure rates are through the roof. On the other, low selling prices and rock-bottom mortgage loan rates have created a fantastic market for potential home buyers. Courtesy of some recent industry data, here’s a closer look at both sides of the issue.

The Downside

The American Dream has always included the promise of home ownership, but for some the reality of owning a home has been nothing short of a nightmare. According to a recent Reuters article:

• 12 percent of U.S. homeowners paid late on their mortgage loans or were in the process of foreclosure during the first quarter of 2009.

• Data from Standard & Poor’s/Case-Schiller Indexes revealed that home prices have dropped 32 percent from their peak in 2006.

• Up to 40 percent of the houses with so-called “failing” mortgages are vacant homes, which seemingly indicates abandonment in many cases by homeowners unable to pay their mortgage bills.

In addition, the Wall Street Journal reports that the national average for foreclosures jumped 35 percent in the 12-month period between April 2008 and April 2009.

The Upside

Overwhelmingly, the economic news has been more bad than good this year. However, now is the perfect time to buy a house if you’ve managed to hang onto your money despite the recession. In fact, buying a home has become more affordable even in the priciest markets. One example of this is found in the WSJ’s coverage of First American CoreLogic’s LoanPerformance Home Price Index data, which reveals that home prices in the New York City metro area have fallen 10.6 percent within the past year. There are some additional upsides as well, such as:

• For existing homeowners, CNN Money reports there’s a “silver lining” when it comes to falling home value: lower property taxes.

• A few weeks ago, it was possible to get a mortgage loan at an interest rate of less than 5 percent. Since then, rates have started to inch up again, indicating that higher interest rates will become the norm again as the economy improves. However, there’s still no time like the present to take out a mortgage. Today's rates are below 6 percent, which will seem like a steal a few months from now.

• To sweeten the home-buying pot a bit more, the federal government offers a first-time home buyer tax credit of $8,000 that applies to any first-time home purchase made between April 9, 2008 and December 1, 2009.

Financial Arrogance at its Peak

Arrogance is simply ego plus ignorance. How many people do you know that hide what they don't know in a false sense of confidence? These are the people who are so self reliant you'll often hear them say, "I could do that better myself" or "I can't trust anyone else to do this". However, making money, investing, or starting a business all take a certain amount of team work. If you try to do everything yourself you are headed straight to failure or "burnout", whichever comes first. Hear are some tips to keep your financial arrogance in check.

· Know the Basics - It's a good thing to know the basics of accounting, finance and legal issues. It makes you a better client, employee or leader. However, there are reasons that people go to school to get degrees in these subjects. Even with a degree, staying on top of tax issues and legal changes can be daunting. There is no need to fill your mind with details that you can pay someone else to take care of.

· Learn to Delegate - This is by far one of the most desirable traits there is; major companies pay big money for people that can delegate effectively. If you can afford it, always delegate a task.

· Continue to Learn - So much of finance is momentum. Don't ever stop learning, there is always more to know. When you make your first billion then you can feel comfortable; until then keep reading.

Warning: There is a also a good side to arrogance. Your ego is the decision-maker in your financial life. Sometimes we weigh ourselves down with so much data, analysis and opinions that we become too scared to make a decision. When faced with this scenario, you need some arrogance. Always make a decision and be slow to change your mind.

This is a Guest Post from Rick Vaughn at The Truth of Credit. Rick's blog is dedicated to personal finance and educating the Least “Sophisticated” Consumer on credit issues.